REPORT TO THE CITY COUNCIL May 21, 2020 FROM: KEVIN R. MEIKLE, Director of Aviation Airports Department SUBJECT ..Title Actions related to an Aviation Land and Building Lease and Agreement with Mid-Valley Disposal, LLC.: 1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act Guidelines 2. Approve a Lease between the City of Fresno and Mid-Valley Disposal, LLC., to operate as a Specialized Aviation Service Operator and related aviation operations at Fresno Chandler Executive Airport (Council District 3) ..Body RECOMMENDATION Staff recommends Council adopt a finding of Categorical Exemption, pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines, and authorize the Director of Aviation to execute an Aviation Land and Building Lease and Agreement (Lease) with Mid-Valley Disposal, LLC., (Mid-Valley), to operate as a Specialized Aviation Service Operator (SASO) and related aviation operations at Fresno Chandler Executive Airport (FCH). EXECUTIVE SUMMARY Mid-Valley is interested in leasing 648 W. Kearney Boulevard (Leasehold), located at FCH, to store corporate aircraft. The Leasehold consists of 37,527 square feet of office, hangar, and ramp space. The term of the proposed Lease is for five years and includes two five-year options, with a 30-day written termination notice without cause. BACKGROUND As a SASO and in addition to storing corporate aircraft, Mid-Valley would also be able to engage in other Revenue Generating Aviation Activities, including but not limited to the following: any commercial activity which relates to the fabrication, operation, maintenance, modification, repair, cleaning [exterior and/or interior], refurbishing, restoration, overhaul, painting, plating or refinishing of aircraft; demonstration flights; aircraft rental; sightseeing flights; aircraft sales, including fractional ownership; management of aircraft owned by others; and/or the sale and/or delivery or installation of aircraft components, parts, systems or accessories. The 37,527 square foot leasehold includes a 10,000 square foot hangar, 23,911 paved aircraft parking apron, and 3,616 other paved area. Refer to attached Site Plan. Mid-Valley will also perform various improvements to the leasehold including restroom upgrades per the Americans with Disabilities Act. The City Attorney has approved the Lease and Agreement as to form. ENVIRONMENTAL FINDINGS Staff has determined this project falls within the Class 1 Categorical Exemptions set forth in the Section 15301 of the CEQA Guidelines for Existing Facilities, as it involves the use of existing structures in place at Fresno Chandler Executive Airport, with no changes to usage. Furthermore, staff has determined none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE The City's Local Preference Ordinance was not applied because this Lease does not include a bid or award of a construction or services contract. FISCAL IMPACT The first year rent is $23,400. The estimated revenue generated under the Lease for the initial five-year term will be $117,000 and include provisions for annual Consumer Price Index adjustments. 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 action. Attachments: Aviation Land and Building Lease and Agreement Site Plan