TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Mukesh (Mookie) Patel
SUBJECT: Amendment to the Lease of
Aiport Premises Agreement
with PrimeFlight Aviation
Services, Inc.
DATE: September 8, 2026
Approved
Date:
9/16/26
COUNCIL DISTRICT: Citywide
RECOMMENDATION
Adopt a resolution authorizing the City Manager or her designee to negotiate and execute the Sixth Amendment to the Lease of Airport Premises Agreement between the City of San José and PrimeFlight Aviation Services, Inc., extending the term for five years from the current expiration date of October 31, 2026, through October 31, 2031.
SUMMARY AND OUTCOME
Approval of the proposed Amendment will allow PrimeFlight Aviation Services, Inc. (PrimeFlight) to continue leasing hangar space to provide essential ground support equipment (GSE) maintenance services under an extension of its existing lease agreement. PrimeFlight’s ongoing support is critical to maintaining efficient ground service operations for multiple airlines serving the San José Mineta International Airport (Airport), resulting in stronger operational reliability and enhanced service efficiency. By enabling PrimeFlight to continue servicing GSE onsite, the Airport reduces downtime of inoperable equipment and ensures airlines and vendors have timely access to much- needed repairs, contributing to fewer operational delays and a more reliable travel experience for passengers. Overall, the extension preserves continuity of service, supports efficient airline operations, and reinforces the Airport’s commitment to maintaining a safe, dependable, and effective airside environment.
COUNCIL AGENDA: 9/29/26
FILE: 26-993
ITEM: 2.9
HONORABLE MAYOR AND CITY COUNCIL
September 8, 2026
Subject: Amendment to the Lease of Airport Premises Agreement with PrimeFlight Aviation Services, Inc.
BACKGROUND
The original lease of the Airport Premises Agreement was executed on December 21, 2010, between the City of San José and Mastertec, Inc., dba AP Enterprise, for the use of lower‑level hangar office space and hangar floor space to support equipment maintenance and related operational activities at the Airport.
A First Amendment to the lease was executed in 2013 to extend the term to October 31, 2018. A Second Amendment in 2018 further extended the term through October 31, 2021, and added provisions required under the San José Municipal Code and federal regulations, including Title VI nondiscrimination requirements. In May 2019, AP Enterprise sold and assigned all of its rights, interests, and obligations under the lease to PrimeFlight Aviation Services, Inc., which the City of San José formally recognized and approved through the Third Amendment. This Amendment also incorporated additional Title VI compliance provisions required under federal aviation programs.
The Fourth Amendment, executed in 2022, extended the lease through October 31, 2023, and added several modernized administrative and regulatory requirements, including asbestos notification for facilities constructed prior to 1979, a force majeure clause, a counterparts clause, authorization for electronic signatures, and a disability access disclosure.
The Fifth Amendment, executed on October 23, 2023, extended the lease term through October 31, 2026, and added General Civil Rights Provisions, updated Title VI nondiscrimination clauses, and incorporated a comprehensive list of Pertinent Nondiscrimination Acts and Authorities. It also revised Exhibit A effective August 1, 2023, to reflect the current leased premises, consisting of approximately 503 square feet of lower‑level hangar office space and 1,000 square feet of hangar floor space.
Throughout PrimeFlight’s operation of the leased premises, the company has continued to perform essential GSE maintenance at the Airport, supporting efficient airline operations, reducing equipment downtime, and helping prevent flight delays. Its presence ensures timely availability of critical equipment repairs and contributes to the reliability and safety of airside operations. PrimeFlight has consistently met operational expectations, maintained compliance with Airport and regulatory requirements, and provided dependable GSE support that is vital to maintaining Airport readiness.
The proposed amendment will continue this longstanding relationship by ensuring uninterrupted access to on‑airport GSE maintenance services that are essential to sustaining efficient airline operations and minimizing potential delays, while maintaining consistency in the authorized use and premises defined under the lease.
HONORABLE MAYOR AND CITY COUNCIL
September 8, 2026
Subject: Amendment to the Lease of Airport Premises Agreement with PrimeFlight Aviation Services, Inc.
ANALYSIS
PrimeFlight provides critical operational support to the Airport through its on‑airport GSE maintenance services. Its presence ensures that essential airline equipment remains available, functional, and safe for daily use. By delivering responsive, onsite maintenance. PrimeFlight helps prevent equipment‑related delays that would otherwise disrupt airline schedules, impede aircraft turns, and affect overall airside efficiency. Its continued operation on the Airport’s premises is foundational to maintaining reliable and predictable airline performance.
Since assuming the lease in 2019, PrimeFlight has maintained compliance with Airport operational, safety, and security requirements while providing continuous GSE maintenance services. The proposed Sixth Amendment would extend the lease term and allow PrimeFlight to continue operating from its existing offices and hangar space without interruption. No changes to the leased premises or authorized use are proposed.
The lease has been updated through prior amendments to incorporate current federal, state, and municipal requirements, including Title VI nondiscrimination provisions, General Civil Rights Provisions, accessibility disclosures, and other administrative and contractual updates. The proposed amendment continues this established agreement while maintaining compliance with applicable Airport and federal requirements.
Since 2010, this lease has generated $251,840 in revenue to the Airport. Approval of the proposed Sixth Amendment is expected to generate an estimated additional $96,171 over the five-year extension term.
Staff recommends approval of the Sixth Amendment as it ensures the continued availability of essential onsite GSE maintenance services, supports efficient airline operations, and provides continued revenue to the Airport.
EVALUATION AND FOLLOW-UP
No additional follow-up action with the City Council is expected at this time.
FISCAL IMPACTS
Since 2010, this lease has generated $251,840 in revenue to the Airport. Approval of the proposed Sixth Amendment is expected to generate an estimated additional $96,171 over the five-year extension term.
No changes are recommended to the
estimated revenues due to the ninth amendment as part of this memorandum.
HONORABLE MAYOR AND CITY COUNCIL
September 8, 2026
Subject: Amendment to the Lease of Airport Premises Agreement with PrimeFlight Aviation Services, Inc.
COORDINATION
This memorandum was coordinated with the City Attorney’s Office and the City Manager’s Budget Office.
PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the September 29, 2026 City Council meeting.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
No board, commission, or committee recommendation or input is associated with this action.
CEQA
Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
Mukesh (Mookie) Patel
Director, Airport Department
For questions, please contact Matthew Kazmierczak, Division Manager, Airport Department, at [email protected] or (408) 392-3640.