Report Prepared by: Rhett Williams, Airport Manager
Title
SUBJECT: Approval of a Lease Agreement between Contour Airlines and the City of Merced for 347 Square-Feet in the Merced Yosemite Regional Airport for a Four-Year Term, July 1, 2026 Through June 30, 2030
REPORT IN BRIEF
Considers approval of Lease Agreement between City of Merced and Contour Airlines which includes leased space and common area maintenance terms for office use, ticket counter space, and other amenities in the Merced Yosemite Regional Airport.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Lease Agreement between Contour Airlines and City of Merced, in form; and,
B. Authorizing the City Manager and City Attorney (Approved As To Form) to make further revisions to the Agreement without changing the base rates in the Agreement; and,
C. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve the Agreement, as recommended by the Regional Airport Authority; or
2. Approve the Agreement, subject to modification by City Council (identify specific items to amend in the motion): or
3. Deny;
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
City of Merced FY 2025-2026 Budget, Section 7, Economic Development - AIRPORT, GOALS, "Enter into new leases and agreements for provision of aviation related services to general additional operating revenues."
DISCUSSION
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. To operate from the new terminal, Contour Airlines will need to enter into an Agreement with the City of Merced. A copy of the Lease Agreement, in form, is attached.
Key terms of the Lease Agreem...
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