,CITY OF J\1ERCED 

Office of the City Manager Telephone 2091385-6834 

May 17, 2012 

Mr. Dennis DeVaney 

Chief, EAS & Domestic Analysis Division, X-53 

Office of Aviation Analysis, Room 6401 

U.S. Department of Transportation 

400 Seventh Street, SW 

Washington, DC 20590 

Fax 2091723-1780 

;·,I 

RE: pOT 2012-5-11 , DOCKET OST-1998-3521 

Essential Air Service (EAS) Program Proposals for Merced, California ~- ; . ~· .: ~ ::~ 

;:;::< ~~~j (~ ) 

Dear Mr. ·DeVaney: ____ ,) 

The US Department of Transportation (DOT) has issued a Request for Proposals for EAS 

service to Merced, California. Great Lakes Airlines has been providing this service since 

September 2008. 

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The City of Merced welcomes proposals from all airlines and is ready to work with airlines in the 

development of their proposals. 

If directed by the DOT, the City wishes to have a seamless transition of air service if a different 

air service provider is selected. To assist in this, we are providing each potential proposer (that 

we know of) with identical information on the lease of the Merced Regional Airport Terminal; a 

cost which should be reflected in their formal EAS proposals. 

The lease cost for the Merced terminal is $5,100 monthly, or $61 ,200 annually. In the event that 

a proposer includes different lease rate information in their proposal, the Department is advised 

that information is inaccurate. Due to local economic conditions, our lease rates have not risen in 

over two years. 

We look forward to working successfully in the transition and thank you for your efforts. 

Sincerely, 

_.~ , 

--·· ·· f ·· • -·~- -- {: J-) \4...-( 't 

John M. Bramble 

City Manager 
Parties: 

Terms Sheet for Lease, Merced Regional Airport Terminal 

Lessor: The City of Merced, 678 West 18th Street, Merced, California 

95340 ("City") 

Lessee: TBD 

Premises: The leased Premises are located at the Merced Regional Airport Terminal, 

20 Macready Drive, Merced, CA, and consist of approximately 834 square 

feet of offices and counters for Lessee's exclusive use, 768 square feet 

(approximately) of modular building space and approximately 1,250 square 

feet of common area for Lessee's non-exclusive use, including restrooms 

and lobby. Lessee also receives non-exclusive rights to use of the Airport 

and its aviation improvements, including aprons, taxiways, and runways. 

Term: The Term of the Lease shall be a minimum of two (2) years. 

Commencement Date: Commencement Date of the Lease shall be ------

Rent: The Monthly Rent is: $5,100 monthly. 

. Payrrientof Rents: Lessee shall pay Rents each month in advance, with the first 

month's payment due within five days of the execution of the Lease by both 

parties. 

Deposits: Lessee shall make a Good Faith Deposit of $5,000 upon execution of the 

Lease by the parties, in the form of cash. 

Uses: The leased Premises shall be used for the purpose of commercial 

passenger aviation, including passenger assembly, ticketing and sales, and 

waiting. Uses may be subject to Federal Aviation Administration rules and 

restrictions. 

Maintenance: Lessee shall keep the Premises and ali improvements in good repair and 

condition. 

Common Area Maintenance and Utilities: Lessee acknowledges that Lessor provides 

common area maintenance and janitorial service to non-exclusive use 

areas of the Premises, and utilities (electricity and natural gas) to both 

exclusive and non-exclusive use areas of the Premises. As compensation, 

Lessee shall pay $850.00 per month in Common Area Maintenance 

charges. 
Landing Fees: Notwithstanding any other policy or rate established for use of the 

Merced Regional Airport, Lessee shall pay to City $17.00 for each landing 

at the Airport. 

Taxes: 

Other: 

Broker: 

Lessee shall pay all property taxes, liens or assessments when due, 

without offset or reduction by Lessor. 

Other provisions shall be included in the Lease, covering nondiscrimination, 

notices, defaults, and cure of defaults, FAA requirements, and others. 

Neither party is represented by a broker in this transaction. 

Conditions: Any Lease Agreement is subject to the approval of the Merced City 

Council, and may be subject to the consent of the Federal Aviation 

Administration.