REPORT TO THE CITY COUNCIL March 17, 2016 FROM: KEVIN R. MEIKLE, Director of Aviation Airports Department SUBJECT ..Title Approve Lease Amendment No. 2 between the City of Fresno and John Tomaino an individual D.B.A. American Helicopters at Fresno Chandler Executive Airport (FCH) (Council District 3) ..Body RECOMMENDATION Staff recommends Council approve Lease Amendment No. 2 between the City of Fresno and John Tomaino, an individual, D.B.A. American Helicopters, ("American Helicopters") at Fresno Chandler Executive Airport to extend the existing lease agreement for an additional three years. EXECUTIVE SUMMARY American Helicopters' existing six-year lease at FCH expired on February 28, 2016 and is currently in holdover status. American Helicopters is a helicopter training and rental business that has been operating at FCH since September 2004 and desires to continue operating in the same location for three more years. Amendment No. 2 will extend the term through February 28, 2019. BACKGROUND American Helicopters currently operates seven R22 helicopters, two R44 helicopters, and three fixed-wing aircraft from the subject large commercial hangar. Included in the hangar are two state-of-the-art flight simulators, administrative offices, dedicated classrooms, and a pilot's lounge. American Helicopters brings in students from around the world for specialized training and is approved to accept VA funding for training American Veterans. They offer flight training packages for Private Pilot through ATP Certification, Aerial Photography, Pipeline/Powerline Surveillance, External Load Operations, Charter and Helicopter Rentals. The business employs six experienced flight instructors and a chief pilot examiner. During its current lease with the City of Fresno Airports Department, American Helicopters has made significant investment into the facility. The rent is $12,347.04 and is subject to annual Consumer Price Index ("CPI") adjustments. The tenant is responsible for payment of insurance, property taxes and building maintenance. ENVIRONMENTAL FINDINGS This is not a "project" for the purpose of CEQA pursuant to CEQA Guidelines Section 15378. LOCAL PREFERENCE The City's Local Preference Ordinance (FMC 4-108) does not apply as this is not a purchase of services, materials, supplies or equipment, or a competitive bidding solicitation. FISCAL IMPACT The revenue from this lease will be $12,347.04 in 2016, and is subject to annual adjustments based on the CPI. The total estimated revenue from this lease for an additional three years is $37,041.12, plus CPI adjustments. All revenue will be deposited into the Airports Enterprise Fund and will contribute to the operation and maintenance of FCH. In addition, this continued business will provide an economic benefit to the City and the airport by providing aircraft services, employment, and local sales tax revenues. There is no impact to the General Fund from this item. Attachments: Lease Amendment 2 Site Map