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Home My WebLink AboutStaff Report 3.B 04/17/20063.B CITY OF PETALUMA, CALIFORNIA April 17, 2006 AGENDA BILL Agenda Title: Meeting Date: Resolution Approving 2006-2007 3% Increase in the Petaluma April 17, 2006 Municipal Airport Rental Rates for Existing T -Hangars and Tie - Down Spaces Meeting Time: N 3:00 PM ❑ 7:00 PM Category (check one): N Consent Calendar ❑ Public Hearing ❑ New Business ❑ Unfinished Business ❑ Presentation r t Denartment: DiIrec or: Contact Person: Public Works Vinc t Marengo Mike Glose Cost of Pronosal: N/A Amount Budgeted: N/A Attachments to Agenda Packet Item: 1. Resolution adopting airport rates and charges 2. Support Material to Justify Hangar Rents Summary Statement: Phone Number: 778-4404 Account Number: N/A Name of Fund: N/A The Petaluma Airport Commission recommended the attached rates and charges at their meeting of April 6, 2006. These rates, which reflect a 3% increase, are to be effective May 1, 2006. All affected tenants have been notified by mail of the proposed increase and of this public hearing. The rates were last increased 7% in May 2005. Recommended City Council Action/Suegested Motion: City Council to approve 3% increase to existing T -hangar and tie -down rental rates to support operations, as recommended by the Airport Manager and the Airport Commission. Reviewed by Finance Director: Reviewed lity Attornev: Datt:s 3//b& Date: -Todav's Date: Revision # and Date Revised: 03/30/06 # Annrove""ity Manager: Date: File Code: s:\Airport Division Foldcr\CC Agenda & Grants Folder\Rale Increases\2006 Rate Increases & Establishment\2006-2007 Rate Increase- THangars & Tie Down An .doe Page 1 CITY OF PETALUMA, CALIFORNIA APRIL 17, 2006 AGENDA REPORT FOR RESOLUTION APPROVING 2006-2007 3% INCREASE IN THE PETALUMA MUNICIPAL AIRPORT RENTAL RATES FOR EXISTING T -HANGARS AND TIE -DOWN SPACES 1. EXECUTIVE SUMMARY: The Petaluma Airport Commission recommended the attached rates and charges at their meeting of April 6, 2006. These rates, which reflect a 3% increase, are to be effective May 1, 2006. All affected tenants have been notified by mail of the proposed increase and of this public hearing. The rates were last increased 7% in May 2005. 2. BACKGROUND: The Airport Commission has recommended that the existing T -hangar and tie -down 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. 5. 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. 7. RECOMMENDATION: Pass the Resolution for the increases as provided and recommended by the Airport Commission. Page 2 Attachment 1 APPROVING 2006-2007 3% INCREASE IN THE PETALUMA MUNICIPAL AIRPORT RENTAL RATES FOR EXISTING T -HANGARS AND TIE -DOWN SPACES WHEREAS, the Petaluma Airport Commission has reviewed and recommended increases in various airport hangar rental rates and other associated airport fees; and WHEREAS, the tenants of the airport have been provided written notice of the proposed increases and advised of the public hearing on same. NOW, THEREFORE, BE IT RESOLVED that the Council hereby approves the rates as described below to be effective May 1, 2006. All Others $263.00 $271.00 3B 287.00 296.00 12C -K, 12C -H, 8C -J 303.00 312.00 IA, 6A&K, 4A, 7A&K, 11K 326.00 336.00 11A 345.00 355.00 1B, 2A, 4B, 613&J, 7B&J, 8A&K, 12A&J, 11I 369.00 380.00 2B, 8B, 12B, I 407.00 419.00 9A -C, 13A -D 584.00 602.00 10A&C 792.00 816.00 lOB 991.00 1,021.00 P14 220.00 227.00 Private Hangars Ground Rentals .0439 .0452 Single Tie -Down Overnight 5.00 5.00 Tie-Down/Month 48.00 49.00 Twin Tie-Down/Month 52.00 54.00 Storage -Inside .424 sf .467 sf Storage -RV 32.00 33.00 Tie -Down Twin Overnight 10.00 10.00 Page 3 Attachment 2 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 Structure $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 4 PAGE 01101' Department of Transportation Division of Aeronautics Airport Loan Program Revenue Generating Loan - Hangars Airport: Petaluma Date of Worksheet: 115105 Loan 4 "$320 covers other dela Cost per Hangar ..... $25,455 Local Contribution . _ . 0 Number of Hangars 55 Total Loan Amount $1,40025 Monthly Rent - Initial $307 Interest Rate ....... 5.0000 % Annual Rent Increase 3.00 % Years of Loan , , , ... W Monthly Rent, 17th Yr $493 Annual Payment to Caltrans Annual Accumulated Profitl(Loss), Year Principal Interest Total Income Annual Total MA'1 O6 1 $58,001 $70,001 $128,002 $202,620 $76,616 $76,618 2 58,001 67,201 123,202 20$,899 85,496 162,114 3 $6,001 64,401 120,402 214,960 94,557 256,672 4 60,555 61,601 122,156 221,408 99,252 3555,924 5 85,399 58,573 123,972 228,051 104,078 460,002 6 70,243 55,303 125,546 234,892 109,346 669,348 7 75,086 51,791 126,679 241,939 115,050 684,407 a 79,932 48,037 127,969 249,197 121,228 805,636 9 84,777 44,040 128,817 256,673 127,858 933,491 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 30,597 129,907 280,473 160,566 1,361,527 13 104,154 25,632 , 129,786 288,886 159,102 1,520,629 14 106,998 20,424 i29,422 297,554 168,132 1,688,762 15 113,843 14,974 128,817' 306,481 177,664 1,886,426 1s 118,687 9,282 127,969 315,675 187,707 2,054,132 17 66,950 3,348 70,298 325,146 254,546 2,308,960 Total $1,400,025 $700,328 $2,100,353 $4,409,333 $2,308,980 posFiB Fe%N6ta ['•7671; • .�•�/ ?.w !3'5M1 Imu Flm( JCJD t VV44VNi. . 1•• ` yi Page 5 I Dec 10,200311:16 am Prepumdbv Kclling Nonhmoss&Nobrigu (Foam= 5.003 t,:\dbolPeUmcty.COP-AIRONLY,BTINSARB) Paga5 NETDEBT SERVICE Page 6 ally mi'Pctalumn COP 2003 Mfuading of 1993 COP -Final ims rad iman at Capim0zed Tom] Eumings DehtSmvice lntamnthru Data Principal Inumast Debt Service 'surplus' Besrn Fumd 1211104 02/012004 -1,143.23 1,14333 DB/012004- 171,98359 171,98359 1,14313 4,57294 101,47032 021012005- 137,586.88 137,586.89 4,57294 54,388.09 ,081012005 165,D60' I37,586.88 • 302,586.88 4,57''94 '021412006 135,52438 135,52438 4,572.94 08/012006 170,000 135,52438 30552438 4,57394 02,'012007 133,39939 133,39938 4,57294 08/012907 170,000 133,39938 303,39938 4,57294 02/012(l08 131,27438 I31,27438 4,57294 09101/2008 175,000 131,27438 306,27438 4,57294 02/012009 128$9938 M99938 457294 081012009 180,001) 128,99938 308,99938 4,572.94 02N172Ai0 126,38938 I26,38939 4,57294 0810112010 IB5,000 126,38938 311,38938 4,57294 027012011 523,42938 123,42938 457294 08/012011 190,000 123,42938 313,42938 4,57294 021012012 120,151,88 12D,151.89 4,57294 08101/312 200,000 120,151.88 320,151.88 457294 02101/2013 116,351.88 116,351.88 4,57294 OBIDI2013 210,000 116,351,88 326,351.88 457294 62/012014 112,151.88 112,151.88 07294 081012014 215,000 312,151.88 327,151.88 457294 0210112015 107,74438 107,74439 4,572.94 OB/012015 25,000 107,744.38 332,74438 4,57294 02/0120/6 102,963.13 102,963.13 4,57294 0810126IG 235,000 102,963.13 337,963.13 4,57294 6210112D17 97,85I.88 97,851.88 4,57294 08/612017 250pa 97$51,88 347,851.88 457494 02/012018 92,289.38 92,28938 4,57294 08/012018 260,000 92,28938 352,28938 457294 028112019 86,37438 86,37438 4,57294 081012DI9 275,000 86,37439 361,31438 4,57294 071012020 79,911.88 79,911.89 4,57294 08/012020 285,000 79,911.88 364.91198 4,57294 0210I2O21 73,143.13 73,143.13 4,57294 081011202I 3G0,000 73,143.13 373,143,13 4,57294 02/01202 65,943.13 65,943,13 4,5'2.94 08/01202 315,000 65,943.13 380,943.13 457294 02/012D23 58,30438 58,30438 4,57294 081012023 335,000 58,30438 393,30438 457294 02/012024 50,056.88 50,096.88 4572.94 08/012024 350,000 50,096.88 400,096.86 4,572.94 02/012025 41,128,13 41,128.13 4,57294 0810]2425 370,000 41,128.13 411,128.13 4,57294 02tOi2026 31,646,88 31,646,88 457294 08/012226 390,00D 31,646.88 421,646.88 4,572_94 02/012027 21,653.13 21,653.13 4,572.94 08/012027 410,000 21,653.13 431,653.13 457294 021012428 11,146.88 11,146.BB 4,57294 OB7012028 435,080 11,146.88 416,146,88 461,866.70 6?95,00D 4542,99633 10.837.896.33 am 682,51105 155,858.41 Page 6 3-12-05 Notes for Year End Budgsl Projection 2006.2006 YR End'05206 REVENUE (+) Land lame, Hangar rents,Ttedmvns 527,670 47090 Sale of Oil 3,487 47110 Sala of 1001-1. 435,170 47130 Sale of Auto Fuel 519 47120 Sale of Jet Fuel 183,322 41120 Unsecurred Properly Tac 89,398 43410-20 Interest eamings 10,044 48010-50 Misc Revanue 1,749 Total Operating Revenue 1,251,359 EXPENSES(-) 51120-52230 Scales, Beneflls77 44,306 53010 Office Supplies 1,094 53080 Op Supplicuel (LL,UL,Jet) 408,231 53020-60 Repair 8 Mlso Supp. 17,291 54110-61 PmllContr Services 49,833 54310-40 Bank and Lab Services 15,307 5BG20 Postage 249 56110-40 Telecom 814 56210-40 Utilities, WalerAectrlcal 35,304 56520.80 Meeting, travel, educ 1,ei0 54210-50 Repairs, maintenance 15,017 Sea 54110 Memberships (AAAE) - 57360 Published Notices/Ads 125 55010-00 Overhead Allocations' 1GB,950 56310-40 Equipment rental 155 56410 Insurance 22,350 57330 Bad Debt - 57320 Teres 8,628 57310 Other special expense 5,213 Total Operating Expanses 734,577 OTHER FIN. SOURCES 3670 State Granls 0 3662 Federal Grants 0 57120 Interest payment ($378,107) 57110 Principal payment ($294,869) 61010 Assets <$5,000 - 6710 Fbaad Asset Depm. 0 7104 Capital project 0 Total Other Fin Sources (872,976) EXCESS (DEFICIT) (156,294) Page 7