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HomeMy WebLinkAboutStaff Report 2.A 03/06/2006CTt'Y OF PETALUMA, CALIFORNIA AGENDA RILL March b, 2006 Agenda 'Title: Meeting Date: Resolution Establishing the Rental Rates for the Fifty One Newly March 6, 2006 Constructed T -Hangars and Four Executive Hangars Meeting Time: ©3:00 PM ❑ 7:00 PM Category (check one): ® Consent Calendar ❑ Public Hearing ❑ New Business ❑ Unfinished Business ❑ Presentation Department: Director: Contact Person: Phone Number: Public Works me Marengo Mike Glose 778-4404 Cost of Proposal: N/A v Account Number: NIA Amount Budgeted: NIA Attachments to Agenda Packet Item: Resolution Summary Statement: Name of Fund: N/A At its February 2, 2006 meeting, the Petaluma Airport Commission recommended establishing hangar rental rates of $.375 per square foot for the newly constructed T -hangars, and$.50 per square foot for the newly constructed executive hangars. Recommended Citv Council Action/Suggested Motion: City Council to approve establishing the rental rates for the newly constructed T -hangars and executive hangars, as recommended by the Petaluma Airport Manager and Ail -port Commission. Reviewed by administrative ervices Dire to ( L {YAM t GJ Date: (Today's Date: Reviewed by City Attornev: Date: Revision # and Date Revised: Annroved. by City Manager: ��� Date: File Code' 2/23/06 s\pf&s\airport\agenda\rate increases 2006 CITY OF PETALUNIA, CALIFORNIA MARCH 6, 2006 AGENDA REPORT FOR RESOLUTION ESTABLISHING THE RENTAL RATES FOR THE FIFTY ONE NEWLY CONSTRUCTED T - HANGARS AND FOUR EXECUTIVE HANGARS EXECUTIVE SUMMARY: At its February 2, 2006 meeting, the Petaluma Airport Commission recommended establishing hangar rental rates of $.375 per square foot for the newly constructed T -hangars, and $.50 per square foot for the newly constructed executive hangars. 2. BACKGROUND: The Airport Commission has recommended that the above hangar rates be established to generate adequate revenue to cover payments on the construction loans. ALTERNATIVES: Reduce the rental rate. This will not allow the airport to meet its obligation to make full loan payments. 4. FINANCIAL IMPACTS: Reduction in the per -square -foot rental rate will jeopardize the airport's ability to meet its loan obligations. 5. CONCLUSION: The rates are justified to meet the loan obligations, and should be implemented as tenants move into the hangars, to begin generation of the revenue stream. 6. OUTCOME OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR COMPLETION. The rate increase will generate income necessary for the airport to meet its financial obligations. RECOMMENDATION: Pass the resolution to establish the rental rates, as provided and recommended by the Airport Commission. y ESTABLISHING THE RENTAL RATES FOR THE FIFTY ONE NEWLY CONSTRUCTED T -HANGARS AND FOUR EXECUTIVE HANGARS WHEREAS, the Petaluma Airport Commission has reviewed and recommended establishing hangar rental rates for the newly constructed T -hangars and newly constructed executive hangars; and WHEREAS, the rates are justified to meet the Airport's construction loan obligations. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby approves the following rate schedule for newly constructed hangars, to be implemented immediately upon occupancy: 1. T -hangars at $.375 per square foot. 2. Executive hangars at $.50 per square foot. 3