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Home My WebLink AboutStaff Report 5.D 04/03/2006CITY OF PFTALUMA, CALIFORNIA April 3, 20 5.l� D AGENDA BILL Agenda Title: Meeting Date: Resolution Establishing the Rental Rates for the Fifty One Newly April 3, 2006 Constructed T -Hangars and Four Executive Hangars Meeting Time: ® 3:00 PM ❑ 7:00 PM Category (check one): 1 Consent Calendar ❑ Public Hearing ❑ New Business ® Unfinished Business ❑ Presentation Deaartment: Director: Contact Person: Phone Number: Public Works 'Yinct /jM�arengo Mike Glose 778-4404 /vl. 3.a. or� Cost of Pronosal: N/A Account Number: N/A Amount Budgeted: N/A Name of Fund: N/A Attachments to Agenda Packet Item: 1. Resolution 2. Support Material to Justify Hangar Rents Summary Statement: At its January 5, 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 Airport Commission. Reviewed by Administrative �ery.ices Dire ova Date: 3 (Q.\ Todav's Date: 3/21/06 Reviewed by Citv Attornev: 0Date: Revision # and Date Revised: Annrovedbv Citv Manager: %/�� Date: File Code: SAAirport Division Folder\CC Agenda & Grants FoldeARate Inereases\2006 Rate Increases & Establishment\2006 Rates for New T Hangars AO.doc Page 1 CITY OF PETALUMA, CALIFORNIA APRIL 3, 2006 AGENDA REPORT FOR RESOLUTION ESTABLISIIING THE RENTAL RATES FOR THE FIFTY ONE NEWLY CONSTRUCTED T - HANGARS AND FOUR EXECUTIVE HANGARS 1. EXECUTIVE SUMMARY: At its January 5, 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. 3. 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. Page 2 ATTACHMENT 1 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. Page 3 ATTACHMENT 2 Comparison of Hangars at Petaluma Municipal Airport New T Hannars: 1. Are fire protected with sprinkler and alarm system. 2. Door height is 6 inches higher than our existing T hangars to accommodate a larger variety of aircraft. 3. Improved door design rollers to make doors easier to open and close. 4. Located in a commercial zone to allow aviation business to be operated in the hangar. Existine Box Hanears: 1. Larger dimensions than T hangars in length, width, and door height (16 or 18 feet compared to 10.5 or 12.5 feet for T hangars). 2. Can accommodate larger aircraft (wingspan, length, height). 3. Rectangular shape allows more space to develop office space, workshop, or storage. New Executive (Box) Hanears: L Are fire protected with sprinkler and alarm system. 2. Floor drains in hangars (drain into oil water separator) to allow aircraft washing within the hangar. 3. Sewer and water stubbed into hangar for hook-up for developing restroom. 4. Electrically operated bi-fold door. 5. Moisture barrier under concrete floor to allow floor painting or epoxy floor treatment. 6. Located in a commercial zone to allow aviation business to be operated in the hangar (storefront windows and business entrance). 7. Dedicated automobile parking adjacent to rear access door and business entrance. Page 4 Airport Hangar state Comparisons Airport Dimension Sq. Monthly Rate per Footage Rental Rate sq. ft. Byron Airport 50 x 50 2500 sf $825 $.33/sf Nevada County (Grass 50 x 48 2400 sf $11.75 $.49/sf Valley) South County 2973 sf $1,688.50 $.556/sf (San Martin) 1872 Hollister 60 x 60 3600 sf (stubbed $.52 sf water) McClellan Field 50 yr. old, 4000 sf $1600- s -40 - (Sacramento) open-ended $1800 $.45/sf Nut Tree (Vacaville) 40 x 50 2000 sf $460 $.23/sf Gnoss Field 50 x 120* 6000 sf $3000 $.50/sf (Marin County Airport) 40 x 50* 2000 sf $980 $.49/sf 60 x 80* 4800 sf $2100 $.44/sf *water only Page 5 March 2006 Hangar Project Cost: Total Project Cost $5,513,110 72,000 sq.ft. hangar space = $76.57 per sq. ft. to build Box'Hangar Cost Bldg 18 Foundation $110,000 Metal Stricture $415,000 $525,000 Bldg 18 = 14,795 sq ft $525,000 / 14,795 = $35.49 sq ft to build T -Hangar Cost Bldg 15 Foundation $105,000 Metal Structure $375.000 $480,000 Bldg 15 =16,254 sq ft $480,000 / 16,254 = $29.53 sq ft to build Page 6 vl ,tiStb Department of Transportation Division of Aeronautics Airport Loan Program Revenue Generating Loan - Hangars PAGE 01101 Airport: Petaluma Date of Worksheet: 115105 Loan # "$320 covers other deb cost per Hangar. - . $25,455 Local Contribution ... 0 Number of Hangars 55 Total Loan Amount $1,400,025 Monthly Rent - Initial $307 Interest Rate .....5.0000% Annual Rent increase 3.00 % Years of Loan ...... 17 Monthly Rent, 17th Yr $493 Annual Payment to Caltrans Annual Accumulated Pro0tt(Loss) Year Principal Interest Total Income Annual Total MA`% 06 1 $55,001 $70,001 $126,002 $202,520 $76,618 $76,618 2 66,001 67,201 123,202 208,699 65,496 162,114 3 56,001 64,401 120,402 214,960 94,557 256,672 4 60,555 61,601 122,156 229,408 99,252 355,924 5 65,399 58,573 123,972 228,051 104,078 460,002 6 70,243 55,303 125,546 234,802 109,346 569,348 7 75,056 51,791 126,879 241,939 115,060 684,407 a 79,932 46,037 127,969 249,197 121,228 805,636 9 84,777 44,040 128,817 256,673 127,856 933,491 10 89,621 39,801 129,422 264,373 134,951 1,068,442 11 94,465 35,320 129,785 272,304 142,519 1,210,961 12 99,310 30,597 129,907 280,473 150,566 1,361,527 13 104,154 25,632 , 129,786 288,888 159,102 11520,629 14 106,998 20,424 129,422 297,554 168,132 1,688,762 i5 113,843 14,974 128,817' 306,481 177,664 1,886,426 16 118,687 9,282 127,969 315,675 157,707 2,054,132 17 66,950 3,348 70,298 325,146 254,648 2,308,980 Total $1,400,025 $700,328 $2,100,353 $4,409,333 $2,308,960 PaaEir Fax No'tea�y ".7E7T=. onat1r110ar 1'10 tt t�- Gt • . Fr"mG p'wm� ' AM C�44�� 1 �� %iilCy$31i53I i Page 7 I Dec 10, 20D3 11:16 am Prepmed by Kelliag NonLeross & Nabtign (Finaacc 5.203 h ldhcTcftcry:COP-AMONLY UTIUSARD) Page 5 Dote 02)012004 2 0/0 12 0 0 4.-.- 021D12005-. 061012005 %021012006 081012006 OIDIn0D7 as/00007 021012008 081012008 021012009 08/01¢009 021012010 OB/DI/2010 07J0U2012 081012011 02/012012 08-071/2022 02t0U2013 081012D13 02/012014 08/01/2014 071DI2015 0012025 02/012016 08/012016 MMI/2017 081012017 021012018 DB/212018 02/012019 081012019 02@12020 08/01/20.70 02)012021 08/012021 021012222 0810UM22 02/012023 081012023 02/212024 081012024 02/01¢025 DB/D12025 07/012026 D8i012026 Q21012027 DS/012027 02/01/2028 08/012025 05, Ciry ofPetaluam COP 2003 Raf mdiog of 1993 CONFinul Insurer) Intmxst Toml Enmings Pdacipal Interest Debt Service 'Surplus' -1,143.73 171,98359 171,98359 1,143 23 165,000' 170,000 170,000 175,00D IBO,DOD 185,000 19D,0DD 200,000 210,000 215,ODD 225,000 235,000 259,000 260,000 275,000 285,000 300,000 315,000 335,000 350,000 370,000 390,000 410,000 435,000 6_'95,OD0 137,586.88 137,586.88 13552438 135,12438 133,39938 133,39930 131,274.36 131,27438 128,99938 128,99998 126,38938 126,38938 123,42938 123,42938 120,151.88 120,151.88 116,351.88 216,352.88 122 15198 112,151.88 107,74438 107,74438 102,963.13 102,963.13 97,851.88 97,851.88 92,28938 92,28938 86,37438 86,37438 79,911.88 79,91198 73,143.13 73,143.13 65,943.13 65,943,13 58,30438 58,30438 50,096.88 50,096.88 41,128.23 41,128.13 31,646.88 31,646.88 21,65313 21,653.13 11,146.88 11,146.88 4541,89633 137,586.88 302586.88 135,52438 305,52438 133,39938 303,39938 131,27438 306'.7438 128,99938 308,99938 126,30938 311,38938 123,42938 313,42938 120,151.08 320,151.88 116,351.88 326,351.88 112,151.88 327,151.BB 107,74439 332,74436 102,963.13 337,963.13 . 97,851.88 347,851.88 92,38938 352,28938 86,37438 361,37438 19,911.68 364.912.88 73,143.13 373,143.13 65943.13 380,943.13 58,34438 393,30438 50,096,88 40D,096$8 41,128.13 411,128.13 31,646.98 421,646.88 21,653.13 431,653.13 11,146,88 446,146.88 IQ,B37396.33 0A0 Capitalized DebtEmIce Sateress0un R=CWCFtmd 12/1104 1,143M 4,572.94 10I,47033 4,572.94 54,388.09 4,57294 457294 4,57394 4,5'294 4572.94 4,572.94 4,577.94 457294 4572.94 4,57294 4,57294 4,57294 4,M94 457294 457294 4572.94 457294 4,57294 4,572.94 4,57294 457294 4,5294 4,57294 4,572.94 457294 4,57294 4,572.94 4572.94 4,57234 4,577.94 4572-94 4,572.94 4,17294 457294 4572,94 4572.94 4572-94 457294 4,572.94 4,57294 457294 4,57..94 4,57?94 4,573.94 4594 4,57294 461,866.70 682511,05 155,SS8.41 Page 8 342-06 Notes for Year End Budget Projection 20052006 YR End '0546 REVENUE (+} Land lease, Hanger rents,nedawns 527,670 47060 Sala of OII 3,487 47118 Sato of IDOLL 435,170 47130 Sala of Auto Fuel 519 47120 Sale of Jet Fuel 183,322 41120 Unsecumed Property Tex 89,398 43410-20 Interest earnings 10,044 45010-50 MISCRevenue 1,749 Total Operaling Revenue 1,251,359 EXPENSES(-) 51120-52230 Salaries, 13enefi0? 44,305 53010 Office Supplies 1,094 53080 Op SupplPuel (L(,UL,Jot) 408,231 53020-60 Repair & Mist Supp. 17,291 54110-61 Prof1CaMr Servlcas 49,833 54310-40 Bank and Lah Services 15,307 58820 Postage 249 56110-40 Telecom B14 56210-40 Utilities, wategElectdcd 35,304 55520-80 Meeting, travel, oduc 1,810 54210.50 Repalrs, maintenance 15,017 See 541 i0 Memberships(AAAE) - 57360 Published Notices/Ads 125 55010-40 Overhead Allwallons" 108,950 55310AD Equipment rental 155 56410 Insurance 22,350 57330 Bad Debt - 57320 Tales 0,628 57310 Other special expense 5,-213 Total Operating Fxpensas 734,677 OTHER FIN. SOURCES 3676 State Grants 0 3682 Federal Grants 0 57120 Interest payment (3378,107) 57110 Principal payment ($294,669) 51610 Assets 4 $5,000 - 6710 FIXed Asset Deprc, 0 7104 Capital praject 0 Total Other Fin Saurces (672.975) EXCESS (DEFICIT) (156,294) Page 9