REPORT TO THE CITY COUNCIL April 25, 2019 FROM: KEVIN R. MEIKLE, Director of Aviation Airports Department SUBJECT ..Title Actions related to the First Amendment to the Airport Lease Agreement with Aerial Solutions, Inc.: 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 First Amendment to the Airport Lease Agreement between the City of Fresno and Aerial Solutions, Inc., 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 15301of the CEQA Guidelines, and authorize the Director of Aviation to execute the First Amendment to the existing airport lease and agreement (Lease) with Aerial Solutions, Inc. (Aerial Solutions) at Fresno Chandler Executive Airport (FCH), to extend the term of the agreement by an additional two years. EXECUTIVE SUMMARY Aerial Solutions is a non-profit organization that provides aerial type assistance to government agencies including fire departments. The type of assistance offered by Aerial Solutions includes aerial surveillance, search and rescue missions, fire mapping and firefighting suppression efforts. The Lease has been in holdover since January 31, 2019. The First Amendment will extend the term of the Lease to January 31, 2021. BACKGROUND Aerial Solutions entered into a five year lease with the City of Fresno in February 2014. The leasehold consists of 17,368 square feet, which includes a 5,095 square foot hangar facility and paved aircraft ramp. Aerial Solutions desires to continue operating at FCH under a two year extension at an annual rent of $10,048.80, which is in accordance with the Lease terms. The rent is subject to annual Consumer Price Index (CPI) adjustments; and includes a 60-day termination clause for both parties (typical for all new or renewed Airport Department leases). The City Attorney has reviewed and approved the First Amendment 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 continuation of an existing lease 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 Local preference is not applicable because this is an amendment to an existing agreement. FISCAL IMPACT The revenue for next two years is $20,097.60 plus annual CPI adjustments. Total revenue received since the Agreement was executed in 2014, including from this First Amendment, is estimated to be $59,330.40 plus future CPI 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 item. Attachments: - First Amendment to the Ground Lease Agreement for Administration and Operations Facility