Report Prepared by: Rhett Williams, Airport Manager
Title
SUBJECT: Recommendation to the Merced City Council Regarding a Lease Agreement Between GSA (TSA) and the Merced Yosemite Regional Airport
REPORT IN BRIEF
Review the DRAFT Lease Agreement with proposed terms between the City of Merced and General Services Administration (GSA) providing a recommendation to Merced City Council. The GSA is representing the Transportation Security Administration (TSA)
RECOMMENDATION
Regional Airport Authority - Adopt a motion recommending approval of the DRAFT Lease Agreement and proposed terms with the General Services Administration representing the Transportation Security Administration to the Merced City Council.
Body
ALTERNATIVES
1. Approve, a recommendation to the City Council; or,
2. Deny; or,
3. Continue to a future meeting (date and time to be specified in the motion).
DISCUSSION
GSA/TSA presence is important for Merced Yosemite Regional Airport. The Department of Transportation (DOT) awarded Contour Airlines a four-year contract to provide commercial air service to Merced Yosemite Regional Airport as part of the Essential Air Service (EAS) program. The new DOT contract allows Contour Airlines to begin service on July 1, 2026, and will expire on June 30, 2030, unless extended by the DOT.
Passengers flying on Contour Airlines from Merced Yosemite Regional Airport to Los Angeles International (LAX) or Harry Reid International (LAS) Airports will be screened by the TSA. This will allow flyers to make connecting flights at LAX and LAS without going through the TSA again. GSA/TSA screening enables passengers to make seamless connections through major hubs such as LAX and LAS, improving the overall travel experience and increasing the airport’s attractiveness to travelers.
The ability to offer screened, connectable flights helps raise total passenger counts, which directly influences the level of FAA funding the airport may potentially qualify for. Elevating passenger numbers strengthens the airport’s long-term financial position.
GSA/TSA functions as an essential airport tenant alongside the airline operator supporting annual growth and ensuring Merced Yosemite Regional Airport can meet federal aviation standards and maintain continued air service.
The presence of TSA positively reinforces airline partnerships, such as the DOT-awarded Contour Airlines service contract, by ensuring the airport can support secure, federally compliant commercial operations.
Key Term - Rent Schedule
10-Year Rent Schedule
|
Year |
Term Type |
Shell Rate (RSF) |
Operating Costs (RSF) |
Full Service Rate (RSF) |
Shell Annual Rent |
Operating Annual Rent |
Total Annual Rent |
|
1 |
Firm Term |
46.27 |
23.50 |
69.77 |
32,893.97 |
16,712.50 |
49,606.47 |
|
2 |
Firm Term |
47.66 |
23.50 |
71.16 |
33,878.26 |
16,712.50 |
50,590.76 |
|
3 |
Firm Term |
49.09 |
23.50 |
72.59 |
34,893.99 |
16,712.50 |
51,606.49 |
|
4 |
Firm Term |
50.56 |
23.50 |
74.06 |
35,941.76 |
16,712.50 |
52,654.26 |
|
5 |
Firm Term |
52.08 |
23.50 |
75.58 |
37,022.88 |
16,712.50 |
53,735.38 |
|
6 |
Non-Firm Term |
53.64 |
23.50 |
77.14 |
38,137.94 |
16,712.50 |
54,850.44 |
|
7 |
Non-Firm Term |
55.25 |
23.50 |
78.75 |
39,288.75 |
16,712.50 |
56,001.25 |
|
8 |
Non-Firm Term |
56.91 |
23.50 |
80.41 |
40,475.01 |
16,712.50 |
57,187.51 |
|
9 |
Non-Firm Term |
58.61 |
23.50 |
82.11 |
41,697.71 |
16,712.50 |
58,410.21 |
|
10 |
Non-Firm Term |
60.37 |
23.50 |
83.87 |
42,958.07 |
16,712.50 |
59,670.57 |
ATTACHMENTS
1. Draft Lease Agreement with GSA