REPORT TO THE CITY COUNCIL FROM: MARK THORPE, Director of Aviation Airports Department BY: JOSHUA CASTELLANO-GONZALEZ, Assistant Director of Finance and Administration Airports Department MELISSA GARZA-PERRY, Airports Properties Manager Airports Department SUBJECT ..Title Actions related to the Lease Agreement with Federal Aviation Administration (FAA) for the Air Traffic Control Tower (ATCT) at Fresno Yosemite International Airport (FAT) (Council District 4). 1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 (Existing Facilities), under of the California Environmental Quality Act (CEQA) Guidelines 2. Approve the Lease Agreement with Federal Aviation Administration (FAA), for the Air Traffic Control Tower (ATCT) at Fresno Yosemite International Airport for a term of five (5) years and an extension of five (5) additional years for a total term of ten (10) years. The amount of potential revenue generated by this Lease is $1,194,978.00 over the full ten-year term ..Body RECOMMENDATION Staff recommends the City Council (Council) 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 Lease Agreement with Federal Aviation Administration (FAA), for the Air Traffic Control Tower (ATCT) at FAT for a term of five (5) years with an extension of five (5) years for a total term of ten (10) years. The amount of potential revenue generated by this Lease is $1,194,978.00 over the full ten-year term, and authorize the City Manager, or designee, to execute the lease and any related documents. EXECUTIVE SUMMARY Since 1962 the FAA has provided Air Traffic Controllers on site at the ATCT constructed by the City for air safety and security. The most recent agreement started in 1987 and was placed in holdover in 2009. The agreement continued to run in holdover until recently when the FAA and City worked to extend the current agreement on the existing ATCT until the new ATCT is built and operational at FAT. That should happen in the next ten years. Under Lease Agreement, FAA will continue to solely occupy and operate the ATCT. The City will continue with required maintenance as agreed upon between the parties. The extended agreement will be effective until 2036 or when the new ATCT is built and operational, whichever occurs first. BACKGROUND FAA's purpose is to be responsible for the safety and efficiency of civil aviation. Its core functions include regulating aviation safety, managing air traffic control, overseeing airports, and licensing commercial space transportation. FAA has been an FAT ATCT tenant under the current agreement since 1987. The current lease was put in holdover status on April 30, 2009, when the parties could not negotiate a new agreement. The agreement has remained in holdover status for the last 17 years. In the last couple of years FAT and FAA have worked together to come up with an extension of the current agreement that will allow for the negotiation of a new ATCT agreement, once the new facility is built. The City Attorney has approved the Lease Agreement as to form. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this Project and has determined that this Lease falls within the Categorical Exemption set forth in CEQA Guidelines Sections 15301/Class 1 (existing facilities) which exempt projects involving a negligible or no expansion of an existing facility. This exemption applies because this project involves the Lease and operation of an existing restaurant and there will be no alteration of the facilities, with no or negligible expansion of airport facility use. Staff determined under the CEQA Guidelines this project fits within the definition of existing facilities in Section 15301/Class 1 as Categorically Exempt from further CEQA review. Staff has determined that 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 total revenue collected for the entire term of the Lease Agreement is $1,194,978.00. There is no impact to the General Fund or ratepayers of the City of Fresno from this item. Attachments: Lease Agreement Categorical Exemption