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SR-800-002-01 . . AD~HED~LS:SM~mh Clty CouncIl MeetIng 8/13/85 ~t?C-c;t)2-0/ Santa MonIca, CalIfornIa /I-R A\l6 1 3 '" TO: Mayor and CIty CouncIl FROM: CIty Staff SUBJECT~ RecommendatIons to Increase and T1e-down Space Rental AIrcraft ParkIng Space Rates MunIcIpal A1rport Monthly AIrcraft Hangar Rates, and 'l'ransIent at the Santa MonIca IntroductIon ThIS report requests that the Clty CouncIl pass a resolutIon to Increase tIe-down space rental rates for monthly and tranSIent a1rcraft, and rates for T-hangar rentals and the rental of hangar Sl tes at Santa Monlca AIrport effectIve October 1, 1985. The report also transml ts the recommendat1on of the Santa Monlea AIrport Commlsslon that these rates be ra1sed by 30% conSIstent Wl th the 1ncrease In the Consumer PrIce Index for Urban Wage Earners. Background The Cl ty cha rges a range of fees for permanent and tranSIent a1rcraft tIe-dOWn space, hangar rentals and land SItes for prIvately owned hangars 1 as shown in FIgure 1. Fees have not been Increased SInce 1980 prImarIly due to uncertaInty regardIng the future of the AIrport. - 1 - II-E Alii; 1 3 1!11 . . AIrcraft revenues and expendItures were exam1ned as part of the master plann1ng process for the a1rport 1n 1983. At that t1me] a need was Ident1fled for a comprehensIve reV1ew and adJustment of a1rcraft tledown space rental rates. The study to establIsh the proper ren ta 1 ra tes} fees and al rc raf t park1ng charges f or the a1rport was carrled out by alrport staff thlS past flscal year (1984-85). The Santa Mon1ca A1rport Agreement between the C1ty of Santa Mon1ca and the Federal AV1at1on Adm1n1strat1on IS spec1flC about the cr1terla to be used 1n establlshlng user fees and charges at the JHrport. The agreement specl tles that the A1rport should strlve to be self supportIng, but that t1e down rental rates and aIrcraft parklng charges should be faIr and reasonable and based on market comparIsons WIth other aIrports ln the regIon. Monthly and TranSIent TIe-Down Rates Staff's survey of other general aVIatlon aIrports establl.shed tha t rates} fees and cha rges a t the Ai rport were] 1ndeed, well below those charged at comparable a1rports 1n the Southern Callfornla reglon. Flgure 2 can be used to compare current tle-down space rental rates at the AIrport WIth rates at comparable aIrports 1n Southern Callfornla. The average rates at these reg10nal aIrports range from $80.00 to $86.00 for a sIngle englne a lrcraft and from $105.00 to $109.00 for a tWI n englne - 2 - . . aIrcraft. The maJorIty of alrcraft based at Santa MonIca Alrport are slngle eng1.ne a1rcratt WIth w1ngspans under 43 feet. Thus, based strl-ctly on a comparabIlIty scale] tIe-down space rental rates at the Alrport could be lncreased by about 60 percent for a typlcal sIngle englne aIrcraft such as a Cessna 152. It should be apparent from Figure 2 that alrports 1n the regIon vary wIdely In the1r select10n of crIterIa on WhlCh to base the1r tle down space rental rates. Although WIngspan WIdth often 1S used as the crIterIa on Wh1Ch to base tIe down charges, there are neither conSIstency nor unIfarm1ty 1n measurement categor1es from one 81 rpor t to the next. In some cases, thlS resu 1 ts 1 n the use of eng1ne conflguratlon as elther a second or entlrely dlfferent crlterlon on WhlCh tIe down rates are based. FIgure 2 15 Intended to prOVIde only a convenIent, snapshot comparlson of rates. One measure of the Increase In costs to operate the aIrport 1S the Increase 10 consumer prIces as measured by the consumer pr1ce lndex (CPI). It has been nearly fIve years s~nce tie down space rental rates were last ~ncreased by the CIty Councll. DurIng that perIod, the CPI for urban wage earners has rl.sen about 30 percent J as mea sured between Janua ry 1980 and January 1985 and rounded off to an even amount. - 3 - . . A 30 percent J.ncrease 1n present t1e-down rates would 1ncrease current fees to the levels shown 1n Fl.gure 3. The resul t1ng rates are somewhat below the av~rage rates at comparable alrports 1n the regJ.on. However] staff feels that an lncrease 1n t1e-down space rental rates pegged to the CPI allows for a staged approach to the CJ.ty's goal of brlnglng rates up to market level. In addl t10n to wages 1 costs dIrectly related to fJ.eld operatlons lnclude bUlld1.ng and structure ma1ntenance, equlpment ma1ntenance, supplles and servJ.ces performed by other Clty departments. Annual flnanclal statements for the aIrport prov1de a detalled account1ng of actual cost lncreases. Concurrent wlth the recommendatlon to ralse t1e-down space rental rates to reflect the 1ncrease J.n the CPI Slnce 1980, staff also orlglnally recommended to the A1.rport Commlss1on a change 10 th~ categorles by whJ.ch t1e-down rates are charged. Charges are now pr1mar1ly assessed 1.0 terms of wlngspan. However, 1f the aJ.rcraft wlngspan lS less than 43 feet w1de, charges are also based on the number of engInes. The current wlngspan categor1es are lnCOnS1.stent w1th the new a1rcraft parklng spaces allocated as part of the A1rport Master Plan. These new parklng space allocatJ.ons represent standard t 1e-down d1mens lons based on such factors as maXlmum WI ngspan] maXJ.mum length, standard WIdth and dens]. ty of space slze, depth of rows, taxllane aJ.rcraft per acre. Wlth1n these - 4 - . . allocatl.ons, a tWl.n engl.ne al.rcraft wl.th a 38' Wl.ngspan occupl.es the same space as a sl.ngle eng1ne al.rcraft wIth the same wl.ngspan Wl.dth. Thus, the classl.fl.cat1ons orl.gInally proposed were felt to be both ratl.onal and meet the facl.ll.ty requIrements of the redeveloped alrport whereas an abl.ll.ty to dl.scrl.ml.nate between sl.ngle and tW1n engine a1rcraft does not. In consl.deratl.on of thIS proposal to change tl.edown space categorIes, the Alrport GommlSSl.On heard test1mony from the aVl.atl.on communl.ty at l.ts meetl.ng of July 31, 1985. The aVl.atl.on commun1ty obJected to the orl.glnal staff proposal on the grounds that the category change was not consl.stent wl.th current space allocatlon on the alrport and on the grounds that certal.n aIrcraft would bear a dlsproportIonate share of the cost Increase under the or1g1nal proposal. The Gomm1SSl.0n accordingly recommended that the category change be deferred untll a later date and that t1edown rates be l.ncreased by 30% and that hangar space ren ta 1 and T-hangar ren tal ra tes be Increa sed cons I s ten t W1th tIedown rates. Staff supports thIS unanImous recommendatIon of the Alrport Gomml.SSl.on. Fl.gure 4 also 1nd1cates the staff proposal for lncreaslng charges for monthly T-hangar rentals and for the hangar sl.tes on WhlCh pr1vately owned hangars are placed Increas1ng T-hangar rentals by 30 percent, cons1stent w1th the Increase 10 the CPI, would meet the Al.rport's need for cost recovery and raIse our T-hangar - 5 - . . rental rates to a leval that IS comparable, although lower than other aIrports In the regIon. A. comparIson of the recommended new rental rate to be charged can be made WI th T-Hangar rental rates at other aIrports shown In FIgure 4. Staff proposes that the rate for hangar SIte rentals be the same as the rate for aIrcraft tIe downs of the same SIZe. The present based fleet mIX lncludes 22 prIvately owned hangars; that IS, hangars not owned by the CIty that are brought on to the AIrport by Indl vldua 1 owner s. Even the sma 11 est of these hangar scan accommodate tWIn engIne aIrcraft. Twenty-one of these hangars are 40 feet wIde; one IS 43 feet wIde. Therefore, under the staff proposal, the charge for each space or SIte would be $85.00 per month. Budgetary/ FIscal Impact The FY 1984-85 estImated actual revenues from monthly and tranSIent tIe down space rental rate are $219,200. Revenues from hangar renta 15 are estlma ted at $13,050 for FY 1984-85. The FY 1985-86 Al rpor t budget proJects these revenues to remaIn constant. Increased revenue from adjusted monthly and tranSIent tIe-down space rental fees tor an eIght month perIod are prOjected to total $43,400. AIrport revenue account #33-911-214-000-000 would thus be Increased to $262,600. Increased revenue from hangar - 6 - . . rentals would total $l,800 resultlng In an Increase In AIrport revenue account #33-911-211-000-000 to $14,850. Increased land lease reVenues from the IndIvIdually owned hangar land leases would total $7,225 resultIng In an lncrease 1n AIrport revenue account #33-911-213-000-000 to $S65,02S. RecommendatIon CI ty s taf f respectfu 11 y recommends tha t CI ty CouncIl adopt the attached resolutlon Increaslng rates for monthly and tran::n ent aIrcraft tIe down, T-hangar rentals and land lease rates for prIvately-owned hangars effectIve October 1, 1985 and reVIse FY1985-86 revenues as follows: Increase account #33-911-214-000-000 by $43,400; - Increase account #33-911-211-000-000 by $ 1,800; Increase account #33-911-213-000-000 by $ 7,225 Prepared by: Hank DIttmar, Alrport DIrector LInda SullIvan, Senlor AdmInIstratIve Analyst Susan MIller, Senlor AdmInlstratlve Analyst - 7 - FIGURE 1: . . CURRENT TIEDOWN SPACE RENTAL RATES AT SANTA MONICA AIRPORT *Deslgnates alrcraft Slzes that are not lncluded 10 current or antlc1pated based tleet mlX. WING SPAN MONTHLY TRANSIENT HIN 1/2 HR. TRANSIENT MAX DAY Slngle Engine ---up to 43 feet $ 50.00 $ . SO $ 4.00 Twln Englne ---up to 43 feet $ 65.00 $ .75 $ 6.00 13 to 49 feet 85.00 1. 00 8.00 49 to 55 feet 105.00 1. 50 10.00 *55 to 61 feet 130.00 2.00 12.00 *61 to 67 feet 165.00 2.50 15.00 *For each addltional foot above 67 feet 2.50 .20 *DC-3 (90 FEET) 225.00 20.00 T-HANGAR RENTAL FEES T-Hangar Rental $150.00 per alrcraft per month Hangar Sltes - Sln91e Englne TVln Englne $ 600.00/yr $ 780.00/yr. - 1 - FIGURE 2: TIEDOWN ~CE RENTAL CALIFORNIA . RATES AT COMPARABLE SOUTHERN AIRPORTS SMALL WINGSPAN MEDIUM WINGSPAN LARGER AI~OB,T OR OR WINGSPAN O~ SINGLE ENGINE LJGH'J;' TWIN HEAVY TWIN 1 . E1Honte $67-110 $87-110 $117-129 A1rDort (based on wlngspan) (based on wlngspan)Cbased on w1ngspan) 2. Johf) Wavn~ $61 $66 $75-$80 A1roort (0-37' span) (37'-40' span) (40'-55'span) 3. Lona Beach -- ---- A1roort FBD #1 $72.50 $100 $100 FBG #2 $90.00 $150 $150 4. Torrance $59 $94 $145 A1roort (30'-40' span) (40'-50' span) (50'+ span ) 5 . Van Nuvs A1roort FBD #1 $97.50 $120 $120 FBD #2 $111 $121 $121 Averaae Rate: $80-$86 $105-$109 $118-$121 - 1 - . . IMPACT OF A 30% cpr INCREASE ON PRESENT TIEDOWN SPACE RENTAL RATES, HANGAR SITE RENTAL AND T-HANGAR RENTAL 1. TIEDONN SPACE RENTAL FIGURE 3: S~ngle Engine (to 43 ft.) $65 DAILY HALF-HOUR $5.00 .65 $7.00 .75 $10.00 $1.00 $13.00 $1.25 $195.00 per month MONTHLY Tw~n En9~ne (to 43 'ft.) $85 (43' - 49') $110 (49' - 55') $135 2. T-HANGAR RENTAL RATES: 3. HANGAR SITE REUTAL FOR INDIVIDUALLY OWNED HANGARS Hangar SIze (space occupIed) Monthly 40-43 ft. $85.00 - 1 - . . FIGURE &: RATES FOR T-HANGAR RENTALS AT OTHER AIRPORTS IN THE REGION CHINO AIRPORT $165 - $220/ month EL MONTE AIRPORT $196 - $390/ month FOX FIELD (PORT-A-PORT) $147 - $342/ month JOHN WAYNE (42' SPAN) $91/ month (43-55' SPA") $360 / month WHITEMAN AIRPORT $159 - $342 / month - 1 - VOTE: Affirmatlve: ? - C Negative: Abstain: Absent: 2~~~~ PROOF VOTE~ WITH ANOTHER PERSON BEFORE A~~THING u:iSlK:iBuTIuN"; uR.I GiNAi. 1:0 be signed, s'ealed and fi led in Vaul t. , j ... ;) .J ... .. " l) J ~ ~ g ~ 4 -l j ~ ) .) ,. -I .) .) .) ~ ~ ) 4 4 ... .) ~ 4 ~ ) ~ oJ C .J ~ ~ .J j .) J , .) :s ,. .) ~ .) J -I -I -I ) 'l ... j) ~ .. ) j j ~ .... .... ~ ~ .J .... o :0 I-l s... dl C o ::t:: BEFORE DISTRIBUTION CHECK CONTENT OF ALL FOR CITY C~ERK'S ACTION DISTRIBUTION OF RESOLUTION * ;?c72- ORDINANCE * 1") ; /): 3/%~ /I-E I . . Councll Meeting Date Agenda Item II Was it amended? Ho . Introduced: Adopted: AU~ PUBUSH AOOPnv ORDINANCES* *Cross out Attorney's approval NEWSPAPER PUBLICATION (Date: ) ) Subject file (agenda packet) Counter file Others: Airport Audltotum / Parking Auth. Department originating staff report ( Management Serv.~~e? Lynne Barrette -urdinances only Agency mentioned in document or staff report Personnel Building Dept. Planning Environ. Servo Police (en- forcement?) Finance Purchasing Rec r /Parks Fire General Servo Transportation Library Treasurer Manager SE:-ID FOUq COPIES OF ALL ORDINANCES TO: CODED SYSTHlS, Attn Peter-fvJacieane 120 ',fain "':Y'~et __ AV0~, ~~w Jersev.077l7 , SEND FOUR COPIES OF AT~~ ORnrNANcfs.TO: PRESIDI~G JUDGE SANTA MO~ICA MU~ICIPAL COURT 1725 MAI\J StREET SANTA MONICA, CA 90401 ~ (certified?) 1 1 *Check Code Sectlons before senC.lng. TOTAL COPIES :7 . . AD.HED'LS:SM:mh Clty Counell MeetIng' 8/13/85 Santa Monica, Callfornla 7072(CCS) RESOLUTION NUMBER . (City Councll Serles) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA SETTING TIE-DOWN AND HANGAR RENTAL RATES AT SANTA MONICA MUNICIPAL AIRPORT WHEREAS, SectIon 10108 of the Santa Mon~ca MunIcIpal Code provIdes for the chargIng of tIe-down or parklng rental rates for aircraft uSlng the Santa Monlca Munlclpal Alrport; and WHEREAS, SectIon 10108 of the Santa MonIca MUOIC1?al Code provldes for the charglng of hangar rental rates for aIrcraft uSlng the Santa MonIca Munlclpal AIrport, and WHEREAS, Secuon 10108 of the Santa Moraca MunlcIpal Code prOVIdes that all tie-dawn, parkIng, and hangar rates shail be set by ResolutIon of the City CouncIL, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS. SECT ION 1 P u :;' sua ~ ~ :- 0 2 ""=' r::: : : "::. r 1. G ~ G .:- .-, ... :: t--. e S 2. ~1 : 3. ~t Q n 1 -.:: -1 MunlCIpal Code, the followIng :Le-dow~ O~ pdrkl~5 ra:~s sball be , - 1. - . . charged at Santa Monl.ca Munl.cl.pal A1rport effect1ve October It 1985' (a) The rate for SINGLE ENGINE AIRCRAFT w1th wIngspan of up to but not more than 43 feet shall be $65.00 for each month or $5.00 for each day or $.50 for each one-half hour. (bl The rate for TWIN ENGINE AIRCRAFT wlth wlngspan up to but nor more than 43 feet shall be $35 00 for each mopth or $7 00 for each day or $.75 for each one-half hour. (c) The rate for AIRCRAFT wlth wingspap of more than 43 feet but not more than 49 feet shall be $110.00 for each month or $10.00 for each day or $1 00 for each one-half hour (dl The rate for AIRCRAFT w1th w1ngspan of more than 49 feet but not more than 55 feet shall be $135 00 for each month or $13.00 for each day or $1.25 for each one-half hour (el The rate for AIRCRAFT wl.th wlngspan of more than 55 feet but not more than 61 feet shall be $150.00 for each monch or $15.00 for each day or $1.75 for each one-half hour ( f I The ra te for AIRCRAFT Wl. t h Wl. ngspan of more than 61 feet shall be $200,00 for each month or $20 00 far each day or $2.00 for each one-half hour. SECT ION 2. Pursuant to Sectlon 10103 of the Santa Mool.ca Munlclpal Code, the followlOg ha~ga~ c~t~s shall be c h a r g e d a t San c a M 0 n 1 c a M un 1 C 1 pal ;\ 1 r p <.) t' t e f f 2 ': 1: 1 V -:: ) ': t 'J b '= ::- 1985: - 2 - '- . ;, . . (a) The rate for T-HANGARS shall be $195.00 for each month. (b) The rate for HANGAR SITES of not less than 40 feet wide and not more than 43 feet wide shall be $85.00 for each month. SECTION 3. The City Clerk shall certify as to the adoption of thls Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: ~~. \----a-- Robert M. Myers Cl.ty Attorney - 3 - . ' . . Adopted and approved this 13th day of August, 1985. tilL ~ ~. u () j-"'t-..-_ - Mayor r~ I hereby certify that the foregoing Resolution No. 7012(CCS) was duly adopted by the City Council of the City of Santa Monica at a meeting thereof held on August 13 I 1985 by the followlng Council vote: Ayes: Councilmembers: Conn, Epsteln, Jennings, Katz, Zane and Mayor Reed Noes: Councilmembers: None Abstain: Councilmembers: None Absent: Councllmembers: Edwards ATTEST: ~~.~ Clty Clerk