REPORT TO THE CITY COUNCIL FROM: HENRY THOMPSON, Director of Aviation Airports Department BY: MELISSA GARZA-PERRY, Airports Properties Manager Airports Department SUBJECT ..Title Actions related to the Airport Joint Use Agreement with the United States of America covering the use of Airfield Facilities at Fresno Yosemite International Airport (FAT) by California Air National Guard (CANG). (Council District 4) 1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act Guidelines; and 2. Approve an Airport Joint Use Agreement with the United States of America covering the use of Airfield Facilities at FAT by California Air National Guard (CANG) for the term of seven (7) years. The amount of potential revenue generated by this Agreement is $289,312.56 for fees from the two (2) year holdover period, and an additional $1,076,489.70 in fees from years 3-7 for the remaining term of the Agreement. Total anticipated revenue during the full term of the Agreement is approximately $1,365,802.26, plus annual CPI adjustments not to exceed 3%. ..Body RECOMMENDATION Staff recommends that City Council (Council) award a seven-year term Agreement with the United States of America covering the use of Airfield Facilities at FAT by CANG for an Airport Joint Use Agreement. Total anticipated revenue during the full term of the Agreement is approximately $1,365,802.26, plus annual CPI adjustments not to exceed 3%. EXECUTIVE SUMMARY The 144th Fighter Wing of the California Air National Guard is based at FAT and operates F-15s and will soon operate the F-15EX Eagle II. CANG uses the same runways, taxiways, navaids, etc. as the airlines and general aviation - for which "joint use" the CANG pays an annual fee. The fee results from a formula developed by the National Guard Bureau (NGB) and applied to prescribed airfield costs. The current Agreement has been in holdover since July 1, 2022. Due to this holdover, the Airports Department has not received the annual fees. This Agreement will allow for back pay of the two holdover years fees immediately upon execution and approval and then an additional five years of annual payments for the fees. The proposed Agreement has a term of seven (7) years. This covers the two (2) years of holdover and the general five (5) year term that comes with the Joint Use Agreement. BACKGROUND California Air National Guard has operated as the 144th Fighter Wing at Fresno Yosemite International Airport since November 1, 1954. The 144th Fighter Wing is a vital component of the US air defense system and an important contributor to the local economy. The fee CANG pays for joint use of FAT's airfield compensates the Airport for some of its airfield costs and helps reduce the fees other airfield users pay. On November 30, 2017, the Airports Department executed the most recent Airport Joint Use Agreement (AJUA) with CANG for a term of ten (10) years, from July 1, 2012, to June 30, 2022. Since November 2021, the Airport has been in negotiations with CANG and the NGB for a new Airport Joint Use Agreement. On July 1, 2022, the current AJUA went into holdover. At that time, all payments to the Airport ceased until a new agreement could be reached. After two years of continuous negotiations between the parties, an agreement has been reached. The City Attorney's Office has reviewed and approved the proposed Airport Joint Use Agreement as to form. Risk Management has reviewed and approved all insurance requirements. ENVIRONMENTAL FINDINGS This Agreement falls within the Class 1 Categorical Exemption for Existing Facilities set forth in in the 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 was not implemented because this item is regarding an existing tenant that desires to continue operating at FAT. FISCAL IMPACT The Airport Joint Use Agreement will provide for annual fees for CANG's continued use of FAT. The revenue from the AJUA is estimated to be approximately $1,365,802.26, plus CPI annual adjustments not to exceed 3%. All revenue will be deposited into the Airports Enterprise Fund and will contribute to the operation and maintenance of FAT. There is no impact to the General Fund of the City of Fresno from this item. Attachment: - Airport Joint Use Agreement