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SR-11-C (16) ~ . , . lftJo - f/t/Z--tJ / . AP:HED:mh city council Meeting 01/24/89 Santa Monica, 11- t!.. JAN 2 4 1989 California TO: Mayor and Council FROM: City staff SUBJECT: Recommendation to Increase Permanent and Transient Aircraft Tiedown Rental Rates and Hangar site Rental Rates at Santa Monica Municipal Airport Introduction This report recommends that the city council adopt a resolution increasing tiedown space rental rates for monthly and transient aircraft and rates for the rental of hangar sites at Santa Monica Airport effective February 1, 1989. Background The city charges a range of fees for permanent and transient aircraft tiedown space and land sites for the parking of aircraft in privately owned hangars, as shown below in Figure 1. Fees have not been increased since October, 1985, primarily due to the onset of the Airport Development Project. since October of 1986, construction at the Airport has resulted in a range of inconveniences to pilots and it was determined to forego further tiedown rate increases until the various City-sponsored construction projects were completed. Conversely, with completion of Airport construction, a much improved environment for both based and transient airplanes is /1"-' t!. -1- JAN 2 4 1989 ,- . . now available, as well as a number of pilot amenities that did not previously exist. The Airport has installed a new drainage system which prevents rain water from sheeting across the runway. Taxiways and ramps have been repaved or reconstructed and the runway has been crack sealed. The installation of a new runway lighting system, newly lighted taxiways and lighted parking aprons make night operations safer and more convenient both on the ground and in the air. Airfield security has also been increased. The new Airport perimeter road and service roads provide safer, more convenient vehicle access to tiedown locations. Finally I the new administration building offers a pilots' lounge, flight planning room, conference facilities and considerably expanded runway observation areas. The Santa Monica Airport Agreement with the Federal Aviation Administration and the Federal Airport and Airways Improvement Act provide limited guidance for rate setting pOlicies. The Act and the Agreement state that facilities and services will be available to the public on "fair and reasonable terms without unjust discrimination. II It is Airport policy to be self-supporting and to require that all Airport users pay their fair share of operational and maintenance expenses. One measure of the increase in costs to operate the Airport, independent of the debt service generated by the redevelopment program, is the increase in consumer prices as measured by the Consumer Price Index (CPI). Airport lease agreements for ground -2- . . parcels, office and shop space all contain regular rate increases pegged to the CPl. Staff believes that tiedown rates also should be subj ect to regular CPI adj ustments to be consistent with federal standards. A staff survey of local general aviation airports show that tiedown rates at Santa Monica are at or below what is charged at seven comparable airports in the region. Figure 1 shows that the Airport currently charges six different rates for tiedowns: FIGURE 1 CURRENT TIEDOWN SPACE RENTAL RATES AT SANTA MONICA AIRPORT MONTHLY & TRANSIENT TIEDOWN RATES T-HANGAR RENTAL RATES HANGAR SITE RENTAL RATES (effective October 1, 1985) 1. Tiedown Rates Transient Trainsient Maximum Minimum Wing Span Monthly Daily Half Hour Single Engine $65 $5.00 $0.65 (to 43 feet) Twin Engine $85 $7.00 $0.75 (to 43 feet) 43 to 49 feet $110 $10.00 $1. 00 49 to 55 feet $135 $13.00 $1. 25 55 to 61 feet $150 $15.00 $1. 75 over 61 feet $200 $20.00 $2.00 2. Hangar sites $85.00 per month -3- . . The vast majority of the based fleet fall within the first two rate categories. Figure 2 represents comparable monthly rate data from the seven genera 1 aviation airports surveyed. FIGURE 2 MONTHLY TIEDOWN SPACE RENTAL RATES AT COMPARABLE SOUTHERN CALIFORNIA AIRPORTS AIRPORT El Monte Airport SMALL WINGSPAN MEDIUM WINGSPAN LARGER OR OR WINGSPAN SINGLE ENGINE LIGHT TWIN OR HEAVY TWIN $70.00 $119.00 $128.00 (to 40' span) (to 50' span) (50+ span) $90.00 $115.00 $122.00 $65.00 $100.00 $154.00 (30'-40' span) (40'-50' span) (50+ span) $78.00 $130.00 $130.00 SE TE $65.00 $l19.00 $125.00 (to 40' span) (TE or 50' span) $65.00 $97.00 $106.00 (to 40' span) (TE or 50' span) $75.00 $110.00 $l40.00 (gross wgt . ) John Wayne Airport Torrance Airport Fullerton Airport Compton Airport Whiteman Airport Hawthorne Airport It has been more than three years since tiedown space rental rates were last increased by the city council. During that period, the CPI for urban wage earners and consumers in the Los Angeles-Long Beach-Anaheim, California area has risen by 11. 7 percent, as measured between September 1985 and October, 1988. -4- . . The new rates still would be well within the range of fees at comparable airports shown in Figure 2. New Tiedown Categories In comparing Santa Monica tiedown rates with rates at other airports, staff also determined that the wingspan categories used at Santa Monica did not sufficiently account for the differences in space taken up by different types of general aviation aircraft. Airports with charges based on wingspan rather than number of engines, limit the initial wingspan category to 401, rather than 43' feet which is the wingspan limit for the two lowest rates at Santa Monica. At Torrance Airport, for example, the monthly charge is only $65 for small wingspan or single engine aircraft to 40 feet. Airplanes with wider wingspans pay $100. Owners of similar airplanes with wingspans between 40 to 431 at Santa Monica pay only $65. Both size and weight of an airplane effect the size of the tiedown that is required. Larger, single engine airplanes are wider, heavier and more difficult to maneuver requiring a tiedown space that provides sufficient room to drive the airplane into. Some smaller, twin engine airplanes have wingspans similar to the singles, but the weight of these airplanes necessitates or makes it preferrable to drive them into their parking place. Small, single engine airplanes, which make up the majority of Santa Monica t s based fleet, can be pushed into their tiedown spaces with little difficulty. Airplanes of this type can be closely nested together on the ramps and provide for the most -5- . . efficient utilization of space per airplane. When more space is higher rate. required for drive-in convenience, the city should receive a In addition to Torrance Airport, El Monte, Compton and Whiteman airports, managed by the Los Angeles County Department of Airports, also have wingspan categories which reflect these differences in airplane types (see Fig. 2). Staff proposes to recategorize tiedowns as indicated below in Figure 3, which also shows the new rates as increased by the CPI. FIGURE 3 PROPOSED PERMANENT AND TRANSIENT AIRCRAFT TIEDOWN RENTAL RATES AND HANGAR SITE RENTAL RATES AT SANTA MONICA MUNICIPAL AIRPORT 1. Tiedown Rates Wing Span Monthly $ 73.00 Single Engine (to 40 feet) Twin Engine (to 40 feet) $ 95.00 40+ to 44 feet 44+ to 50 feet 50 + $168.00 2. Hangar sites: Transient Transient Maximum Minimum Daily Half Hour $ 7.00 $0.90 $10.00 $1. 00 $123.00 $15.00 $1. 25 $151. 00 $20.00 $1.50 $25.00 $2.50 $123.00 Per Month Under the new categories, owners of heavy, single engine airplanes with wingspans under 40 feet could request to pay the higher tiedown rate for the light twins and be provided with a larger parking space, if available. Despite the new categories, -6- . . tiedown rates for the majority of based aircraft on the field will only be increased equivalent to the CPI increase for the period from 1985 through 1988. The new categories also better meet the facility requirements of the new, consolidated Airport. New aircraft tiedown space allocations were recommended as part of the Airport Master Plan. The allocations represent standardized tiedown dimensions based on such factors as wingspan, maximum length, standard space size, depth of rows, taxilane width and density of aircraft per acre. On the old Airport, with parking aprons sprawled over a 215 acre site, such precision was unnecessary to meet the requirement in the FAA Agreement that the Airport accommodate 550 based aircraft and 40 transients. ~angar site Rentals Staff proposes that the month-to-month rental rate for hangar sites on which privately owned hangars are placed be the same as the rate for aircraft tiedowns of the same size. (See fig. 3, page 6 ). The present based fleet mix includes 22 privately owned hangars: that is, hangars not owned by the city but constructed or brought on to ground parcels leased by the City to individual owners. All of the ground leases have now expired. Even the smallest of these hangars can accommodate twin engine aircraft. Twenty-one of these hangars are 40 feet wide; one is 43 feet wide. -7- . . Therefore, under the staff proposal, the charge for each space or site would be $123.00 per month. Transient Tiedown Rates The staff proposal for daily rates for transient aircraft is also shown in Figure 3 (page 6 ). Staff recommends that the first two hours of transient parking be free. This is more consistent with what is done at Airports throughout California and the Southwest. It accommodates pilots who must land at the Airport for food, gas and other necessities. After two hours, charges accrue on half hour intervals, which is the existing policy. The new daily rates are based on the philosophy that while transient aircraft are welcome at the new Airport, they, too, must pay their fair share of the cost of the improved facilities. -8- . . Recommendation of the Santa Monica Airport Association The Santa Monica Airport Association (SMAA) is a group comprised of airplane owners, pilots and commercial aviation operators. In successive meetings with representatives of the (SMAA), it was agreed that the seven airports listed in Fig. 2 were "comparable" to Santa Monica. The Association passed a resolution stating that tiedown rates at Santa Monica Airport should be based on an average of tiedown rates for five of the seven comparable Airports, with the highest and lowest rates dropped out of the equation. Staff evaluated SMAA IS posi tion and determined that the comparability method was not as sensitive to the impact of price increases on Airport operations as the CPI. Moreover, the method results in an inequitable burden on the owners of heavy single and light twin engine airplanes. Under the SMAA plan, the rate charged for light twins would jump 136 percent, an increase having no relationship to actual increases in airport operational expenses. Figure 4 shows what the tiedown rates would be using the "averaging" method proposed by the Association. -9- . . FIGURE 4 RATE INCREASES AS PROPOSED BY THE SANTA MONICA AIRPORT ASSOCIATION* (Rates shown are the averages of rates at El Monte, Torrance, Fullerton, Compton and Hawthorne airports. See Figure 2.) 1. Tiedown Rates Wing Span Monthly single Engine $ 71. 00 (to 40 feet) Medium Wingspan $116.00 or Light Twin Engine Larger Wingspan $135.00 or Heavy Twin 2. Hangar Site: $135.00 *The SMAA did not object to the reclassification of tiedown categories or to the new daily and hourly transient parking rates. -10- . . Airplane owners in the first category would benefit by $2.00 a month over the staff proposal. But the owners of heavy single engine airplanes and light twins would be charged $21.00 a month more than the proposed CPI increase calls for and owners of twins and single engine aircraft with wingspans from 40 to 44 feet would see their monthly rates jump from the current $85 a month to $135.00 or $50 a month. Conversly, two high end categories of aircraft -- mostly business and corporate aircraft -- would be eliminated. This means the owners of the largest, most expensive airplanes would be given an unfair price break. In some cases, these owners would end up paying less than they currently do. consequently, staff believes basing tiedown rate increases on the CPI is a more balanced approach to fee increases. It distributes the burden of increased operational expenses more fairly over the entire fleet and does not discriminate against light twins. Budgetary Fiscal Impact Revenues from monthly and transient tiedown space rentals were estimated at $311,000 for FYI988-89. (The estimate included an across-the-board CPI increase of 10% for the 12 month period.) Estimated permanent and transient revenues for seven months at current tiedown rates, without the 10 percent CPI adjustment, and for five months with the 11.7 percent CPI increase are $297,892.85. Airport revenue account 33-911-214-000-000 would thus be reduced by $l3,107. Increased land lease revenues from the individually owned hangar land leases would total an -11- . . additional $1,936 , resulting in an increase in Airport revenue account 33-911-213-000-000 to $705,336. Recommendations Ci ty staff respectfully recommends that the city Council adopt the attached resolution increasing rates for monthly and transient aircraft tiedown and land lease rates for privately owned hangars as outlined in Figure 3, effective February 1, 1989 and revise FY1988-89 revenues as follows: -Reduce account 33-911-214-000-000 by $13,107. -Increase account 33-911-213-000-000 by $1,936. Prepared by: Hank Dittmar, Airport Director ccOl2489 -12- BE?ORE DISTRIBU?IO~ C~K CONTENT OF ALD FOR CITY DISTRIBUTION OF RESOLUTION ~ j77s- 7 ORDINANCE ~ ERK'S ACTIOi'< Councll ~eetlng Date ~'/ //1 Introduced: Agenda Item # // - c- VOTE: Aff~rmatlve: Negatlve: Abstaln: Absent: ~~ PROOF VOTES WITH ANOTHER ~ERSON BEFORE ANYTHING DISTRIBUTION: ORIGINAL to he slgned, sealed and flied ~n Vault. No <<~ .'" ~-i~/~ Adopted: ALWAYS PUBLISH ADOPTED ORDINANCES Cross out Attorney's approval ;f:-=-r?L--L. , ,!f~ -;> /' ee<<, ~ " .-- t/ ' Was ~t amended? NEWSPAPER PUBLICATION (Date: Department orlg~natlng staff report( Laur~e L~eberman) Ord~nances only for Attorney ( Claudla Tho~pson) -z- Manageme~t Servlces Lynne Barrette ORDINANCES ONLY ~ Agency ~entlor.ed In doeument or staff report (certlfled? ) SubJect flle (agenda packet) 1 Counter flie 1 Others: (Revlew Alrport Aud~tor1um BU11dlng Dept. for departments who need to know) . I Parklng Auth. Personnel Plannlng PolJ.ce Purchasl.ng Recr!Par'<s Transportatlon Treasurer ClEO Flnance General Servo L~brary Manager Flre SEND FOUR COPIES OF ALL ORDINANCES TO: CODED SYSTEMS 120 Maln Street Avon, New Jersey 07717 4 SEND FOUR COPIES OF ALL ORDINANCES TO: 4 Debra :-lyrl.ck Santa Monlca ~unlclpal Court 1725 ~aln Street, Room 118 Santa Monlca, CA 90401 Total Coples :3' , ' . . AP:HED:mh City council Meeting 01/24/89 Santa Monica, California RESOLUTION NUMBER 7757 (CCS) City Council Series A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA SETTING TIEDOWN AND HANGAR SITE RENTAL RATES AT SANTA MONICA MUNICIPAL AIRPORT WHEREAS, Section lOl08 of the Santa Monica Municipal Code provides for the charging of tiedown or parking rental rates for aircraft using the Santa Monica Municipal Airport1 and WHEREAS, Section 10108 of the Santa Monica Municipal Code provides for the charging of hangar rental rates for aircraft using the Santa Monica Municipal Airport; and WHEREAS, section 10108 of the Santa Monica Municipal Code provides that all tiedown, parking, and hangar rates shall be set by Resolution of the City council, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. Pursuant to section 10108 of the Santa Monica Municipal Code, the following tiedown or parking rates shall be charged at Santa Monica Municipal Airport effective February 1, 1989: -1- " . . . (a) The rate for SINGLE ENGINE AIRCRAFT with wingspan of up to but not more than 40 feet shall be $73.00 for each month or $7.00 for each day or $0.90 for each one-half hour, after the first two hours. (b) The rate for TWIN ENGINE AIRCRAFT wit.h wingspan up to but not more than 40 feet shall be $95.00 for each month or $10.00 for each day or $1.00 for each one-half hour, after the first two hours. (c) The rate for AIRCRAFT with wingspan of more than 40 feet but not more than 44 feet shall be $123.00 for each month or $15.00 for each day or $1.25 for each one-half hour, after the first two hours. (d) The rate for AIRCRAFT with wingspan of more than 44 feet but not more than 50 feet shall be $151.00 for each month or $20.00 for each day or $1.50 for each one-half hour, after the first two hours. (e) The rate for AIRCRAFT with wingspan of more than 50 feet shall be $168.00 for each month or $25.00 for each day or $7.00 for each one-half hour, after the first two hours. SECTION 2. Pursuant to section lOIOS of the Santa Monica Municipal Code, the following hangar site rental rates shall be charged at Santa Monica Municipal Airport effective September 1, 1988: (a) The rate for HANGAR SITES of not less than 40 feet wide and not more than 44 feet wide shall be $123.00 for each month. -2- . , . . SECTION 3. All owners of aircraft hangared or tied down at Santa Monica Municipal Airport shall furnish proof to the Airport Director at least once yearly that the aircraft possess a current Air Worthiness Certificate. Temporary acceptions of up to one year may be granted by the Airport Director SECTION 4. The city Clerk shall certify as to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: ........v-.....;r ~ ~,. U ROBERT M. MYERS CITY ATTORNEY -3- . " ~ . . Adopted and approved this 24th day of January, 1989. f)e.- M1~ I hereby certify that the foregoing Resolution No. 7757 (CCS) was duly adopted by the City council of the City of Santa Monica at a meeting thereof held on January 24, 1989 by the followinq Council vote: Ayes: Councilmembers: Abdo, Finkel, Genser, Jennings, Reed, Mayor Zane Noes: councilmembers: None Abstain: Councilmembers: None Absent: Councilmembers: Katz ATTEST: ~/~ --- City clerk