Title
Airports, a division of the Chief Administrative Office, recommending the Board:
1) Approve and authorize the Assistant Chief Administrative Officer to sign Lease Agreement 3036, as well as any successive options, with REACH Air Medical Services, LLC for approximately 5,500 square feet of leasable land located at 3501 Airport Road, Placerville for a term of ten years, with the option for two additional successive ten-year terms commencing on November 15, 2026, with an initial annual rate of $5,544; and
2) Authorize the Assistant Chief Administrative Officer to sign any amendments to the Lease increasing the cost share cap related to the shared utilities noted in Section 2.E. of the lease agreement.
FUNDING: Revenue to Airports of approximately $5,544 annually.
Body
DISCUSSION / BACKGROUND
REACH Air Medical Services, LLC (REACH) provides critical care air- and ground- transport service to communities throughout California, Colorado, Hawaii, Nevada, Oregon and Wyoming. REACH employs hundreds of highly trained nurses, paramedics, pilots and aircraft maintenance technicians to provide service to patients using their fleet of medically equipped helicopters, airplanes and ground ambulances. REACH is requesting to lease approximately 5,500 square feet of land at the Placerville Airport to house a 24/7 flight crew. In addition to the ground lease revenue of approximately $5,544 annually, REACH will also enter into a tie-down agreement for their helicopter estimated at approximately $4,400 annually. REACH will also be purchasing a significant amount of fuel from the Placerville Airport which will provide a steady revenue source for the Airport.
Facilities staff are currently working with PG&E, REACH, and our Airport Consultant, Brandley Engineering, to complete the design for a new transformer, new panel board/electrical and new electrical conduits that will serve the REACH modular as well as the future Sheriff Hangar. Lease Agreement 3036 allows for a 50/50 cost share, not to exceed $75,000, for this utility work. The work will need to go out to bid, so the total cost is not known at this time. REACH has agreed to amend the Lease, if needed, to increase the cap if the total work exceeds $150,000. This project is included in the adopted FY 2026-27 Facilities Capital Workplan. REACH will be operating out of a temporary structure at the Airport until their modular building is constructed, estimated to be ready in January 2027. If the utility work cannot be completed by that time, REACH will be utilizing a generator to power the new modular building. The goal is to complete the utility connections within the next few months, but the work required by PG&E is out of the County’s control and PG&E is unable to give a timeframe for completion.
ALTERNATIVES
The Board could choose not to approve this ground lease, and REACH would be unable to bring a helicopter to the Placerville Airport.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
This lease agreement is a revenue generating agreement. The department estimates that REACH will bring anywhere from $70,000 - $100,000 annually to the airport from ground lease fees, tie down fees, and fuel purchases.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Laura Schwartz, Assistant Chief Administrative Officer
Dale Lusby, Airport Operations Officer