BOARD OF AIRPORT COMMISSIONERS -

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1 0 OF1 Los Angeks World Airports REPORT TO THE BOARD OF AIRPORT COMMISSIONERS - Meeting Date: O'IAA.A.)1.Alk-Tort/uQA212J`s-- Approved by: Samantha Bricker - Deputy Executive Director 11/16/ Pleviewed by: Robert Gilbert - Chi f D elopment Officer CAO Review: 1=1 N/A Completed Pending _ Cit Attu / Reviewed for Date Finance 11/3/2017 CEQA 10/24/2017 Approval Status ZY N El NA MY N By RW JH Procurement 10/26/2017 MY N Cond MT,12ebo h Flint Chief Executive Officer -- Guest Experience 11/2/2017 ElY ON AW SUBJECT: Adopt the Negative Declaration for the Jet Aviation, Inc. Van Nuys Airport Tenant Improvement Project Consider and Adopt the Negative Declaration for the Jet Aviation, Inc. Tenant Improvement Project at Van Nuys Airport. RECOMMENDATIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report. 2. FIND on the basis of the entire record that: a) the Board of Airport Commissioners (BOAC), as the decision-making body of the lead agency, considered the information contained in and adopt the Negative Declaration (ND) for the Jet Aviation, Inc. Tenant Improvement Project (Proposed Project) including the Initial Study (IS) and any comments received; b) there is no substantial evidence that the Proposed Project will have a significant effect on the environment; and, c) the ND reflects the independent judgment and analysis of the lead agency. 3. ADOPT the ND. Page 1

2 DISCUSSION: 1. Purpose Consider and adopt the ND prepared for the Proposed Project at Van Nuys Airport (VNY). 2. Prior Related Actions January 14, Resolution No The BOAC approved a 30-year lease with Jet Aviation, Inc. enabling reinstatement of fixed based operator services and potential future redevelopment of facilities located at Roscoe Boulevard at VNY for an estimated revenue of $28,000,000 over the term. February 23, Resolution No City Council concurred with BOAC's action of January 14, 2016 authorizing the Executive Director of Los Angeles World Airports (LAWA) to execute the lease with Jet Aviation, Inc. for the use of LAWA land and existing facilities at Roscoe Boulevard at VNY. 3. Current Action Staff is requesting the adoption of the Proposed Project's ND. Section of the lease agreement states Jet Aviation, Inc. must obtain the applicable compliance requirements of the California Environmental Quality Act (CEQA) prior to commencement of construction of the planned improvements as stated in the previously approved lease agreement. As lead agency, LAWA processed a project-level Initial Study/Negative Declaration (IS/ND). The IS/ND evaluated all environmental topics required by CEQA as outlined in Appendix G of the State CEQA Guidelines. Based on the evaluation, LAWA determined that the Proposed Project will have a less than significant impact on the environment. Project Background The 17-acre site had been operated as a Fixed Based Operator (FBO) since 1982 by various leaseholders through the years. The last lease was terminated due to bankruptcy in October 2014 and the property was returned to LAWA for management. Once LAWA assumed responsibility, the decision was made to re-activate the site and a Request for Proposal (RFP) was released to lease the site. The property includes 11 hangars with a combined footprint of approximately 250,000 square feet (sf), associated ramp and taxilanes, an office building, and an Underground Storage Tank (UST) fuel farm. These existing structures have deteriorated over time and the ramp and taxilanes have lost the structural integrity to support larger, heavier jet aircraft. Jet Aviation, Inc. was the successful bidder in response to the RFP and entered into a new 30-year lease with LAWA on January 14, This enabled the reinstatement of competitive fixed based operator services, such as aircraft fueling, aircraft maintenance and hangar needs, for users at VNY Airport. The lease allows for the potential redevelopment and modernization of the approximately 17 acre site once CEQA and National Environmental Policy Act (NEPA) approvals have been obtained. Page 2

3 Project Description Jet Aviation, Inc. proposes to develop the site by demolishing and rebuilding all the existing structures and adding new facilities. The Proposed Project would be developed with a total of 132,844 sf, a reduction of 117,156 sf from existing conditions. The Proposed Project includes the following elements: Proposed Project Elements New FBO Hangar FBO hangar (approximately 51,000 sf) including office space and support facilities. Maintenance, Repair and Overhaul (MRO) Hangar MRO hangar (approximately 68,000 sf) to be used exclusively for aircraft maintenance activities. The MRO includes additional office space and support facilities. FBO Terminal FBO Terminal (approximately 14, 200 sf, two-story building) and office space for use as a customer service center. The FBO terminal includes lounge space, aircraft catering facilities, customer holding and storage areas, conference rooms, administrative offices, flight planning rooms, and locker rooms. Above Ground Storage Tank (AST) Fuel Farm Removal of a 60,000 gallon UST fuel farm replaced with a new AST fuel farm of the same 60,000-gallon capacity. Water Tower A 500,000 gallon capacity water tower, and a sprinkler and foam fire suppression system with an UST to protect the hangars and terminal. Upgrade Ramp and Taxiways Upgrade to meet the demands of heavier, larger business aircraft, and current environmental requirements. Fencing Replacement and relocation of Airport Operations Area and perimeter fencing to secure the site and airport. Parking Redesign parking layout. Increased parking to 222 spaces, removal of private vehicle parking within FBO hangars to improve safety inside FBO. Electric vehicle (EV) charging station, bike racks and American Disabilities Act (ADA) spaces. Project Design and Landscaping Building and landscaping will meet or exceed the 2016 Cal Green Building Standards Code to increase energy and water efficiency and update appearance. Environmental Review The IS/ND was prepared in accordance with CEQA, Public Resources Code Section et. seq. and the State Guidelines Title 14 California Code of Regulations (CCR) section et. seq. The IS/ND analyzed the Proposed Project's effect on the environment, it evaluated all 18 categories of environmental factors as outlined in Appendix G of the State CEQA Guidelines and it included an air quality and climate change impact assessment. The Page 3

4 assessment followed the methodologies and guidance presented in the South Coast Air Quality Management District s (SCQAMD) Air Quality Analysis Handbook and Air Quality Management Plan. The Proposed Project was found to have a less than significant impact in all 18 categories including air quality and climate change. The IS/ND was released on August 31, 2017 for public review and comment in accordance with CEQA Guidelines Section The Notice of Intent (NOI) was published in the Los Angeles Times on the same date it was released. The IS/ND was posted at the offices of Los Angeles City Clerk and County Clerk, the LAWA Administrative Offices at LAX and VNY, the Mid-Valley Regional Library, and the Los Angeles City Library Van Nuys Branch. Copies of the NOI were sent to the surrounding properties, VNY tenants, local business associations and chambers, local homeowners associations, local tribal representatives, the VNY Airport Citizens Advisory Council, local Council Districts and Councilmembers, the Mayor s Office and other City agencies, and local Congressmen. In addition, the IS/ND was also made available on the LAWA website: The IS/ND public comment period ended on September 20, 2017 and LAWA received no comments on the Proposed Project s Initial Study. An environmental review was also conducted under the National Environmental Policy Act (NEPA) and LAWA prepared a Categorical Exclusion (CatEx) for the Proposed Project. A CatEx is prepared when an action does not have significant individual or cumulative environmental impacts. LAWA submitted the Proposed Project s CatEx to the Federal Aviation Administration (FAA) on September 7, 2017 for their review and determination. It is anticipated the FAA will issue a letter of determination in the fourth quarter of Action Requested Staff requests that the BOAC consider and adopt the ND for the Proposed Project. Fiscal Impact As an administrative action, this item will have no fiscal impact. 4. Alternatives Considered Take No Action Taking no action is not recommended. Development of the property requires an environmental review under CEQA. APPROPRIATIONS: No appropriations are requested for this item. STANDARD PROVISIONS: 1. A IS/ND was prepared for this project in compliance with the CEQA and the City of Los Angeles CEQA Guidelines. Pursuant to State CEQA Guidelines Section 15074(c), the location and custodian of documents and materials related to the IS/ND for this project is the Page 4

5 Los Angeles World Airports, Environmental Programs Group, One World Way, Suite 218, Los Angeles, California This agreement will be approved as to form by the City Attorney. 3. Actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section This action is not subject to the provisions of the Service Contractor Worker Retention and Living Wage Ordinances. 5. This action is not subject to the provisions of the Small Business Enterprise, Local Business Enterprise/Local Small Business Enterprise, and Disabled Veterans Business Enteprise Programs. 6. This action is not subject to the provisions of the Affirmative Action Program. 7. This action does not require a Business Tax Registration Certificate. 8. This action is not subject to the provisions of the Child Support Obligations Ordinance. 9. This action is not subject to the insurance requirements of the Los Angeles World Airports. 10. This action is not subject to the provisions of City Charter Section 1022 (Use of Independent Contractors). 11. This action is not subject to the provisions of the Contractor Responsibility Program. 12. This action is not subject to the provisions of the Equal Benefits Ordinance. 13. This action is not subject to the provisions of the First Source Hiring Program. 14. This action is not subject to the provisions of Bidder Contributions CEC Form 55. Reference: Jet Aviation Inc. Tenant Improvement Project Initial Study Page 5