Report Prepared by: Karen Baker, Economic Development Associate, Merced Regional Airport
Title
SUBJECT: Approval of a Lease Agreement in the Amount of $850.00 Monthly Between REACH Air Medical Services, LLC, and the City of Merced for Merced Yosemite Regional Airport, Maintenance Hangar #16
REPORT IN BRIEF
Considers a twenty-four (24) month lease agreement for maintenance hangar #16 in the amount of $ 850.00 per month with REACH Air Medical Services, LLC, as recommended by the Merced Yosemite Regional Airport Authority.
RECOMMENDATION
City Council - Adopt a motion approving the lease agreement with REACH Air Medical Services, LLC, for maintenance hangar #16 and, authorizing the City Manager or designee to execute the necessary documents.
Body
ALTERNATIVES
1. Adopt the motion as recommended by the Airport Authority.
2. Modify the action (specify in motion).
3. Deny the action
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
This item aligns with City Council priority for Economic Development as provided for in the 2021-22 Adopted Budget.
DISCUSSION
REACH Air Medical Service, LLC, formally known as CALSTAR Air Medical Service, has requested to renew their existing lease at the Merced Yosemite Regional Airport. REACH currently leases Hangar # 16 for general maintenance and storage of aircraft owned, leased, or managed by the lessee. REACH crew occupies quarters within the Fixed Base Operator (FBO) center and purchases fuel from the FBO.
Rent will be $850.00 per month effective for a 24-month period from the date of execution of the lease by the City of Merced (Attachment 1). The lessee will have the first right of refusal for a 24-month renewal of the lease. The lease agreement also includes provisions for payment of the commercial operator’s permit by the lessee.
The Merced Yosemite Regional Airport Authority recommends City Council approval of the lease as negotiated with REACH Air Medical Services, LLC.
IMPACT ON CITY RESOURCES
No appropriations from the General Fund are associated with this lease. The lease revenue received will go into Fund 561-Airport for ongoing operations.
ATTACHMENTS
1. Hangar #16 Lease Agreement - REACH Air Medical Services, LLC.