HomeMy WebLinkAboutStaff Report 2.B 03/06/2006CITY OF PETALUMA, CALIFORNIA 2.B
AGENDA BILL March 6, 2006
Agenda Title: Meeting Date:
Resolution Approving an Increase in the Rental Rate for the Ten March 6, 2006
Existing Executive Hangars at Petaluma Airport
Meeting Time: ® 3:00 PM
❑ 7:00 PM
Cateeory (check one): N Consent Calendar ❑ Public Hearing ❑ New Business
❑ Unfinished Business ❑ Presentation
Denartment: Director: Contact Person: Phone Number:
Public Works Vince Mike Glose 778-4404
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Cost of Proposal: N/A Account Number: N/A
Amount Budgeted: N/A
Attachments to Agenda Packet Item:
Resolution
Summary Statement:
Name of Fund: N/A
At its February 2, 2006 meeting, the Petaluma Airport Commission recommended to increase rental rates
for the existing executive box hangars in a two-step process over a two-year period, from $.295 per square
ft. to $.325 per square ft., effective May 1, 2006, and increased to $.35 per square ft. effective May 1, 2007.
All affected tenants have been notified by mail of the proposed increase.
Recommended Citv Council Action/Suggested Motion:
City Council to approve the increased executive hangar rental rate to support operations, as recommended
by the Airport Manager and Petaluma Airport Commission
Reviewed by Administrative Reviewed by City Attornev: Approved AXity Manager:
S ices Director: �Date: Date:LIJ L� : Date:L(Z� /
Todav's Date: Revision # and Date Revised: File Code:
2/23/06 s\pf&s\airport\agenda\rateincreases 2006
CITY OF PETALUMA, CALIFORNIA
MARCH 6, 2006
AGENDA REPORT
FOR
RESOLUTION APPROVING AN INCREASE IN THE RENTAL RATE FOR THE TEN EXISTING EXECUTIVE
HANGARS AT PETALUMA AIRPORT
EXECUTIVE SUMMARY:
At its February 2, 2006 meeting, the Petaluma Airport Commission recommended to increase
rental rates for the existing executive box hangars in a two-step process over a two-year
period, from $.295 per square ft. to $.325 per square ft., effective May 1, 2006, and increased
to $.35 per square ft. effective May 1, 2007. All affected tenants have been notified by mail
of the proposed increase.
2. BACKGROUND:
The Airport Commission has recommended that the hangar rates be increased to allow for
adequate revenue to help offset the cost of operations.
3. ALTERNATIVES:
a. Reduce the amount of increase. This will have a negative reflection on the level of
services provided to the airport tenants and visitors.
b. Deny the increase. The airport would not be able to fully cover its operating expenses.
4. FINANCIAL IMPACTS:
Denial of this request will put the airport in a potential operating deficit, which will require a
reduction in services.
CONCLUSION:
The rate increase is justified to help meet the current budgetary demands, and should be
implemented as soon as possible.
6. OUTCOME OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR
COMPLETION.
The rate increase will generate additional income necessary to maintain airport operations.
RECOMMENDATION:
Pass the resolution for the increases as provided and recommended by the Airport
Commission.
APPROVING AN INCREASE IN THE RENTAL RATE FOR THE TEN EXISTING
EXECUTIVE HANGARS AT PETALUMA AIRPORT
WHEREAS, the Petaluma Airport Commission has reviewed and recommended an increase
to the rental rates for the existing executive box hangars; and
WHEREAS, the recommendation is for the increase to take place in two steps over a two
year process; and
WHEREAS, the affected airport tenants have been provided written notice of the proposed
increases.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma
hereby approves an increase in the rate schedule for the existing executive hangars, as described
below.
1. An increase from $.295 per square ft. to $.325 per square ft., effective May 1, 2006.
2. An increase to $.35 per square ft., effective May 1, 2007.