REPORT TO THE CITY COUNCIL September 19, 2019 FROM: KEVIN R. MEIKLE, Director of Aviation Airports Department SUBJECT ..Title Actions related to the Second Amendment to the Airport Lease Agreement with Frank Ruiz: 1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines. 2. Approve the Second Amendment to the Airport Lease Agreement between the City of Fresno and Frank X. Ruiz Avionics, at Fresno Chandler Executive Airport. (Council District 3) ..Body RECOMMENDATION Staff recommends that City Council adopt a finding of Class 1 Categorical Exemption, pursuant to Section 15301 of the CEQA Guidelines, and authorize the Director of Aviation to execute the Second Amendment to the existing airport lease and agreement (Lease) with Frank X. Ruiz Avionics at Fresno Chandler Executive Airport (FCH), to extend the term of the agreement by an additional five years. EXECUTIVE SUMMARY Ruiz Avionics is a company operating an aircraft repair, avionics repair, and an aviation fuel station business at FCH. The current Lease terminated on July 31, 2019 and is in holdover status. The Second Amendment will extend the term of the Lease to July 31, 2024. BACKGROUND Ruiz Avionics entered into a three year lease with the City of Fresno in August 2011 which was subsequently extended for an additional five years in November 2014. The leasehold consists of 66,893 square feet, which includes a 9,000 square foot hangar facility, 2,700 square foot office and 55,193 square feet of paved aircraft ramp. Ruiz Avionics provides aviation fuel sales, aircraft repair and maintenance, and specializes in aircraft avionics and radio repairs. Ruiz Avionics desires to continue operating at FCH under a five year extension. The current monthly rent is $2,869.00, which is in accordance with the Lease terms. The rent is subject to annual Consumer Price Index (CPI) adjustments. All other Lease provisions shall remain in place as part of the original agreement. The City Attorney has reviewed and approved the Second Amendment as to form. ENVIRONMENTAL FINDINGS This agreement falls within the Class 1 Categorical Exemption for Existing Facilities set forth in California Environmental Quality Act (CEQA) Guidelines, Section 15301 for existing facilities, as it involves no alteration of existing facilities, with no expansion of use, and will not result in any significant negative effects relating to traffic, noise, air quality or water quality. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference is not applicable because this is an amendment to an existing agreement. FISCAL IMPACT The revenue for next five years will be $172,140.00 plus annual CPI adjustments. The revenue received during the full term of the agreement is $447,564.00. All revenue will be deposited into the Airports Enterprise Fund and will contribute to the operation and maintenance of FCH. There is no impact to the General Fund from this item. Attachments: - Second Amendment to the Hangar Facility Lease Agreement