Agenda Item AGENDA STAFF REPORT ASR Control 23-000557
MEETING DATE:	08/08/23
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	5
SUBMITTING Agency/Department:	John Wayne Airport (Approved)
Department contact person(s):	Charlene Reynolds (949) 252-5183
	Kim Kitko (949) 252-5291

Subject: Approve Lease with Transportation Security Administration

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

4/5 Vote

Budgeted: Yes

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: No

Current Fiscal Year Revenue: See Financial Impact

Funding Source: N/A	County Audit in last 3 years: No
Levine Act Review Completed: N/A

Prior Board Action: 9/25/2018 #23

RECOMMENDED ACTION(S):

Find that the project is Categorically Exempt from the California Environmental Quality Act (CEQA), Class 1, pursuant to CEQA Guidelines Section 15301.

Approve and execute a U.S. Government Lease for Real Property with The Transportation Security Administration for security services support offices at the Thomas F. Riley Terminal, effective October 1, 2023, through September 30, 2033.

Authorize the Airport Director or designee to extend the Lease with The Transportation Security Administration for two additional five-year terms at a negotiated and agreed rental rate with the County of Orange.

SUMMARY:

Approving a new U.S. Government Lease for Real Property with The Transportation Security Administration will provide continued support offices for security screening services at the Thomas F. Riley Terminal Building.

BACKGROUND INFORMATION:

John Wayne Airport (JWA) seeks Board of Supervisors (Board) approval of the U.S. Government Lease for Real Property (Lease) with The Transportation Security Administration (TSA) for the use of 3,688 square feet of exclusive use space in the Thomas F. Riley Terminal Building, to support passenger and baggage screening.

TSA is responsible for screening passengers and checked baggage at JWA. TSA provides the staff for and operates the security checkpoints in Terminals A, B, and C. The security screening includes checking passenger identification and boarding passes to ensure that only ticketed passengers are entering the secure side of the airport, operating the passenger screening equipment at the checkpoints, and the checked baggage screening equipment in the baggage screening rooms. The Lease is for the offices that support the security screening processes.

On September 25, 2018, the Board approved a five-year lease with TSA to use support space at the Thomas F. Riley Terminal Building, which will expire on September 30, 2023.

Lease Agreement

The term of the new Lease is 10 years beginning on October 1, 2023, with an initial annual rent of $342,468. The annual rent adjusts by five percent automatically and includes reimbursement for utilities and janitorial services. The Lease authorizes using approximately 3,688 square feet of exclusive use space, including office space, break rooms, locker rooms, computer rooms, and a screening manager's office. The exclusive use space does not include any area associated with checkpoint or baggage screening operations.

Option to Extend the Lease

JWA requests Board approval to authorize the Airport Director or designee to extend the Lease for two additional five-year terms at a negotiated and agreed rental rate with the County of Orange (County). TSA will exercise its option by providing a Notice of renewal in the form of a Supplemental Lease Agreement (SLA) 120 days before the lease or renewal term expires.

Either the County or TSA can terminate at any time during the term of this Lease with 60 calendar days written notice to the other if (i) regularly scheduled commercial air services cease, (ii) JWA opts to replace TSA screeners with private contractors, (iii) the checkpoint supported by the leased space is closed, or (iv) Government reduces its presence at JWA due to a reduction in deplanements.

Compliance with CEQA: The proposed project is Categorically Exempt (Class 1) from the provisions of CEQA pursuant to CEQA Guidelines Section 15301 because it involves a lease of a public facility involving negligible or no expansion of the existing use.

FINANCIAL IMPACT:

Revenues related to the Lease are included in Fund 280, Airport Operating Fund, FY 2023-24 Budget, and will be included in the budgeting process for future years.

The revenue to JWA for TSA’s Lease Term of October 1, 2023, through September 30, 2033, will be $4,083,530.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A – U.S. Government Lease for Real Property