Sutter County Airport . . . . . . . . . . . . . . . . . .

There is ongoing discussion to turn the operational control of the airport over to a Pilot

Association made up of local pilots utilizing the airport. This option is currently under review by the pilots. Unless the operation can be turned over to a private enterprise for operational control and responsibility, SCA will continue to be a burden to the taxpayers. Rental rates for businesses at the airport should be raised to fair market value.

Unless rental rates are increased, the deficit resulting from operational costs exceeding income will continue to increase, and taxpayers of Sutter County will continue to subsidize the county airport.

Establish a set amount or percentage of General Fund support that the Board of Supervisors is willing to provide

Look at long-term projections and determine if it is possible under the above conditions to maintain the airport in the future 9 0.00% 14.89% 11.41% 0.00% 36.84% 13.13% 0.00% 25.41% 2.64% 0.00% 0.00% 4.04% 0.00% 1.94% 1.94% 0.00% 7.74% Operations % GF - of Contribution 29,899 38,630 12,523 9,204 216,733 409,054 15,733 22,725 34,292 67,773 General 1 Fund S 5 S S 969'08 852,910 189,170 409,670 81,150 261,124 179,765 2,045,573 223,000 2,601,595 259,465 475,081 1,107,712 1,676,337 Operations ı ı Costs Forty-four percent (44%) of all public airports are owned by Counties - the rest are owned by cities. S S S available on Projects -if $ 660,000 $1,755,200 $1,950,000 $6,252,257 budget 5 The average GF contribution as a percentage of total operating budget is 1.94% 921,124 1,836,350 969'08 409,670 2,129,765 189,170 852,910 223,000 8,853,852 1,170,039 259,465 1,107,712 2,045,573 21,060,705 475,081 1,676,337 810,027 Total Annual 1 ı Airport Research Budget Attachment A Picked the counties whose population puts Sutter as the median. S S $ 5 S S 5 5 Employees 3.00 19.50 9 2.00 19.00 8.80 4.00 1.00 1.00 7 ı ı Of the 58 counties, 4 (22%) have no airport responsibility. # One County airport for every 77,013 people on average County owned 43% # of 26 4 00 0 4 7 \vdash 0 77 \forall \vdash 7 2 9 \vdash The average annual budget is $1.170.039 The average GF contribution is $22.725 Airports The average airport has 2 employees Public Total 9 9 \infty 7 2 7 2 \vdash 9 2 6 3 7 7 4 4 3 10 2,002,343 77,013.19 95,878 176,158 182,236 199,066 62,419 64,059 71,929 90,163 99,186 136,704 154,434 179,722 56,799 57,784 132,821 150,887 45,971 46,127 Population 18 22% Mendocino San Benito Tuolumne Calaveras Humboldt El Dorado County Imperial Siskiyou Tehama Nevada Madera Shasta Sutter Napa Kings Lake Yuba Yolo TotalPer AirportAverage 9,408 1,472 76,913 9,393 12,820 74,996 8,731 220,344 4,841 (932) 109,342 48,500 69,064 92,657 313,000 12,085 168,995 10,000 226,353 121 236,353 405,469 92,469 . . 2010 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ S S S S S S $ 5 $ $ $ $ $ $ $ $ $ $ 5 S S (225,174) 10,000 40,000 4,168 6,184 2,051 34,249 472,490 12,163 3,204 20,000 70,232 5,455 490,108 90,601 006'69 248,137 14,141 181,025 671,134 14,117 445,959 177,822 268,137 ı 1 1 . 2009 · · · · · · · · · · · · · · · · · · · S $ *** S $ S S S S S 8 8 8 8 $ (30,590) 12,724 8,660 11,505 78,180 6,072 10,321 978 35,551 44,447 6,036 17,541 12,496 209,430 14,206 2,158 70,328 40,000 66,600 40,000 226,971 153,292 3,089 196,381 1 1 1 ı, 2008 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 *** S S S S S S S v v v v v S $ (72,699) 2,788 32,080 73,850 10,848 4,493 11,267 6,901 37,362 54,794 20,000 5,021 6,584 302,874 4,994 68,048 12,261 11,776 14,323 13,096 100,000 186,138 97,357 248,080 44,037 230,175 1 1 2007 · · · · · · · · · · · · · · · · · · · S 50 50 50 50 Ş S S S S S S S S S S 5 S $ (79,562) 10,190 111,010 235,843 7,099 67,102 253,131 504,645 15,310 806'99 245,222 9,132 5,2019,957 2,177 10,397 8,091 14,343 251,514 91,028 1,064 425,083 14,104 5,552 245,222 178,797 1 . . 2006 · · · · · · · · · · · · · · · · · · · S S S S S S $ S $ $ $ $ $ $ W W W S S 5 (18,820) (2,657) 2,996 9,533 33,428 1,750 35,000 124,590 17,420 6,1689,5434,128 53,937 16,373 13,908 16,315 7,580 279,834 5,506 68,408 36,750 261,013 14,945 135,097 309 246,405 223,955 1 • 2005 Attachment B - Airport Profit and Loss *** S S s 5 S S S S S S S S $ $ $ $ W W W 5 S 17,558 5,305 13,268 6,484 3,243 8,875 8,028 16,903 218,811 22,931 127,443 11,787 4,837 67,875 144,409 10,000 241,742 8,821 201,908 14,621 231,742 10,000 1 1 Ţ. 1 2004 S · · · · · · · · · · · · · · · · · · · S S S S S S S $ $ $ $ $ $ 4 4 4 S S S $ 5 19,599 8,218 36,261 103,398 9,300 11,683 6,169 14,064 8,443 201,169 63,326 10,000 27,527 14,490 164,909 14,054 5,609 115,354 5,805 198,343 30,308 45 228,697 1 1 1 1 2003 S 0 0 0 0 0 0 0 0 0 0 0 *** S $ S S S S S S N N N N $ $ S 9,725 184,240 180,699 7,600 197,126 14,896 6,854 62,696 10,000 21,232 8,500 4,832 381,366 140,664 50 402,598 132,007 9,672 5,703 13,801 8,827 225,111 177,437 1 1 1 1 2002 0 0 0 0 0 0 0 0 0 0 0 S S S S S S S S S S S 8 8 8 8 S S S S $ $ 7,600 16,811 10,923 65,913 10,000 244,044 39,352 7,369 11,211 187,882 9,211 204,693 13,439 8,259 146,433 234,044 10,000 129,200 17,800 5,097 6,282 1 1 1 1 1 . • . 2001 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ S S S S S S S $ S W W W S Ξ 4 4 4 4 5 5 $ (7,502) 10,000 6,320 7,600 9,595 184,776 3,929 0 10,000 177,275 94,713 146,254 21,327 38,522 66,58083,279 7777 16,687 13,487 167,274 4,957 - 1 . 1 • • 1 • 2000 · · · · · · · · · · · · · · · · · · · S S S S S S S s $ $ $ S S S S 5 5 5 5 $ 5 5,318 6,030 172,011 58,096 9,172 10,659 111,545 126,922 9,756 14,484 308,689 11,71456,38975,709 10,000 130,000 190,000 65,882 14,469 50 478,331 420,235 158,281 1 . 1 - 1 . 1999 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ *** S S $ $ $ $ $ $ 4 4 4 4 $ 5 S S Admin - Misc. Depts Profit/(Loss) - URC Revenues Expenses Sp. Dept Expense Operating Plant Acquisition Operating A-87 - Overhead Interest Expense *Miscellaneous Capital Grants Total Revenues Weed Control Total Expenses LT Debt repay LT Debt Proceeds Maintenance Prof Services Total Operating Admin - PW Total Operating Misc. Revenue A-87 - BM Structure Total Capital State Aid Total Grants Utilities Interest Rents CAAP Taxes Fuel Fuel FAA (51,349) 220,344 69,064 48,500 (51,349) (20,564) (30,785) 151,280 (30,785) 2010 $ $ 5 S $ $ S $ s s S (3,203) (3,203) (332) (332) (2,871) 181,025 177,822 (2,871) 70,232 110,793 2009 S 5 $ $ $ $ $ S 5 $ 5 (56,138) (44,557) (11,580) (56,138) 209,430 78,180 (44,557) 131,25086,692 2008 * $ $ $ $ $ $ $ $ s s $ (61,942) 248,080186,138 (61,942) 97,357 (64,586) (64,586) 2,643 150,72486,138 2007 $ 5 5 $ $ S s s S $ $ $ (72,717) (72,717) (52,735) 111,010 (19,982) 251,514 (52,735) 140,504 87,769 2006 $ s s s s 5 S 5 $ $ S (22,451) 246,405 (22,451) (32,958) 124,590 (32,958) 121,816 10,507 2002 Attachment B - Airport Profit and Loss 5 $ 5 s s 5 S S $ 5 5 201,908 127,443 29,834 16,966 29,834 12,868 74,465 12,868 2004 $ 5 $ s s S $ 5 S S S 164,909 198,343 103,398115,354 33,435 33,435 11,957 21,478 61,51182,989 21,478 Equip Maint, Memberships, Office Expenses, Misc Prof Services, Training, Travel, IF Gen Ins, Postage, Printing, 2003 s s $ * s s s s S $ $ $ 184,240 225,111 32,214 132,007 40,871 40,871 52,233 32,214 8,657 2002 *Miscellaneous Expenses - Extra Help, Communications, Household Exp, Copy Service $ $ 5 S S s s 5 $ $ S 187,882 46,162 129,200 17,233 46,162 28,929 58,68287,611 28,929 2001 $ $ S S 5 S 5 S S 12 21,020 (11,434) 146,254 (11,434) 94,713 21,020 32,454 32,454 51,541 83,995 2000 S 5 s s 5 $ s s 5 $ $ 111,545 46,735 65,882 46,735 9,827 36,908 9,827 45,663 36,908 1999 S $ $ $ 5 S $ S True Operating Profit/(Loss) $ $ $ True Operating Profit/(Loss) $ Operating Expense w/o Fuel Operating Profit/(Loss) Operating Profit/(Loss) Operating Revenue Operating Expense Revenue w/o Fuel Fuel Profit/Loss Fuel Profit/(Loss) Fuel Revenue Fuel Expense $168,99 $220,34 $(51,34 2010 $181,02 $177,82 $(3,203 2009 $209,43 $153,29 $(56,13 2008 $248,08 $(61,94 $186,13 2007 $(72,71 $251,51 $178,79 2006 Operating Profit/(Loss) $246,40 $(22,45 $231,74 $223,95 2005 $29,834 $201,90 2004 □Operating Profit/(Loss) | $46,735 | $21,020 | $46,162 | $40,871 | $33,435 $164,90 $198,34 2003 $184,24 $158,28 $167,27 $234,04 $225,11 2002 $187,88 2001 $146,25 2000 13 $111,54 1999 $(50,000) $(100,000) $250,000 $300,000 $150,000 $200,000 $100,000 $50,000 ■Operating Revenue ⊹ ■Operating Expense $34,249 $76,913 $35,422 $1,472 $8,731 $9,941 2010 ş $11,267 | $10,321 | $10,000 $32,080 $35,551 $40,000 $2,051 $4,168 2009 ş $4,493 $12,724 $73,850 $44,447 $8,660 2008 ş $6,901 2007 ş. $17,558 $53,937 $67,102 $9,957 $13,268 $16,373 $10,397 $14,104 $9,132 $8,091 2006 Attachment D - Major Expenses $8,821 $17,420 $9,543 $2,996 $(2,657) 2002 $8,000 $6,484 $3,243 2004 $14,490 $11,683 $9,300 $6,169 2003 ÷ Ś $9,672 $13,801 $8,500 $4,832 2002 Ś ŝ $14,484 $13,801 $17,800 $10,923 $7,369 $6,282 2001 ş ŝ $6,320 $9,777 2000 ŝ Ŷ Ś 14 $6,030 $9,172 1999 ÷ ş Ś Maintenance Utilities — Utilities — Admin - Misc. Depts — Admin - PW — A-87 - Dwerhead $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $(10,000) ÷ $220,344 ■Operating Revenue $158,281 $167,274 $234,044 $225,111 $198,343 $231,742 $223,955 $178,797 $186,138 $153,292 $177,822 $168,995 $(51,349 2010 $221,151 $(43,329 2009 $236,903 $(83,611 2008 Attachment E - Operating Profit/(Loss) - Extrapolated A-87 $243,777 $(57,639 2007 $255,068 $311,100 $296,571 $(117,77 2006 $(87,145 2005 $(23,325 2004 $164,718 | $201,242 | $238,464 | $229,243 | $219,551 $(21,208 2003 $(4,132) 2002 $(4,420) 2001 15 $(33,967 2000 $(6,438) 1999 Operating Expense $(50,000) $(100,000) $(150,000) $350,000 $300,000 $250,000 $150,000 $200,000 $100,000 $50,000 ş □Profit/Loss 9,408 12,820 109,342 9,941 1,472 35,422 76,913 9,393 74,996 4,841 12,085 (932) 48,500 10,000 69,064 8,731 220,344 313,000 168,995 226,353 121 405,469 92,469 92,657 236,353 ı 2010 · · · · · · · · · · · · · · · · · · · S S S S S S s $ $ $ $ $ $ $ S S S $ $ $ $ (265,300) 12,163 20,000 10,000 2,051 40,000 74,375 472,490 5,455 490,108 711,259 3,204 90,601 248,137 70,232 4,168 6,184 14,141 14,117 006'69 445,959 268,137 177,822 221,151 1 ı 2009 S S S S · · · · · · · · · · · · · · · · · · · $ S S S S S $ S S S S $ $ $ S (58,064) 8,660 11,505 6,036 35,551 12,496 254,445 14,206 70,328 40,000 978 71,921 17,541 2,158 009'99 40,000 78,180 12,724 6,072 153,292 3,089 196,381 10,321 236,903 1 2008 $ $ $ $ $ $ S S ************* S $ $ $ $ $ 5 5 5 5 5 5 S $ 5 (98,396) 20,000 11,776 10,848 13,096 68,048 12,261 6,584 54,794 298,571 4,994 230,175 4,493 2,788 37,362 100,000 186,138 44,037 97,357 32,080 14,323 5,021 11,267 6,901 69,547 243,777 ٠, 2007 $ S 0 0 0 0 0 0 0 0 0 0 S *** 5 $ A 4 4 4 4 W W W $ $ (124,619) 15,310 10,190 235,843 7,099 549,702 806'99 245,222 425,083 111,010 9,957 67,102 67,252 14,343 253,131 5,552 91,028 1,064 5,201 2,177 296,571 245,222 9,132 10,397 178,797 . . 2006 S S S S S S $ $ $ $ $ $ $ $ $ $ S s S *** S S $ $ (83,514) Attachment F - Airport Profit and Loss - Extrapolated A-87 1,750 35,000 344,528 14,945 309 261,013 13,908 16,315 9,533 7,580 33,428 5,506 36,750 4,128 16,373 65,033 311,100 68,408 124,590 17,420 6,168 9,543 53,937 135,097 223,955 1 2005 s S $ $ $ S s $ *** 5 S S S S S S S S S S $ 5 (30,229) 10,000 241,742 8,875 8,028 271,971 14,621 67,875 8,000 17,558 13,268 11,787 144,409 231,742 10,000 127,443 5,305 62,887 255,068 16,903 4,837 8,821 1 1 ( 1 1 1 1 2004 s S S S S S $ S S S S S S S S S S S S S S S S S S S S S S S $ 5 (27,115) 255,812 14,064 8,218 14,054 63,326 10,000 9,300 8,443 115,354 20,308 45 228,697 103,398 14,490 5,805 11,683 60,811 219,551 19,599 5,609 198,343 30,308 36,261 1 1 1 1 2003 40 $ $ $ $ $ $ $ $ $ $ $ $ $ S S S S S S S S S S S S S s $ 5 S 5 (23,772) 2,600 426,369 10,000 20 4,832 58,805 9,725 180,699 402,598 5,703 229,243 8,827 197,126 14,896 6,854 62,696 140,664 167,437 132,007 9,672 225,111 177,437 1 1 1 2002 $ S S $ $ s $ 5 S $ $ $ $ $ $ $ $ $ $ $ $ $ W W W W S S S S (11,231) 255,275 13,439 10,000 244,044 11,211 7,600 9,211 8,259 65,913 146,433 234,044 129,200 17,800 7,369 10,923 56,864 238,464 16,811 10,000 5,097 1 - 1 1 1 1 1 2001 16 s S $ $ 5 S S $ $ $ $ $ $ $ $ $ $ $ $ $ S $ $ $ S S S S S 5 5 5 (62,489) 10,000 13,487 0 239,764 3,929 167,274 10,000 177,275 6,320 54,988 16,687 201,242 21,327 7,600 9,595 66,580 83,279 94,713 9,777 38,522 13,801 4,957 1 1 0 0 1 1 2000 S S S Ś 5 5 5 S 5 *** 5 5 5 5 $ $ 5 S $ 5 4,923 14,469 10,000 10,659 172,011 473,408 75,709 190,000 20 5,318 6,030 9,172 53,173 164,718 9,756 308,689 11,71456,389 158,281 130,000 478,331 14,484 65,882 1 . 1 1999 50000 S S S S S ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 8 8 8 8 8 8 S $ 5 S **A-87 - Overhead & BM Admin - Misc. Depts Profit/(Loss) - URC Revenues Expenses Sp. Dept Expense Operating Operating Plant Acquisition Interest Expense *Miscellaneous Capital Grants Total Revenues Weed Control Total Expenses LT Debt repay LT Debt Proceeds Maintenance Prof Services Total Operating Admin - PW Total Operating Misc. Revenue Structure Total Capital State Aid Total Grants Utilities Interest Taxes Rents CAAP Fuel Fuel FAA (51,349) (30,785) (51,349) (20,564) (30,785) 220,344 69,064 151,280 2010 5 3 $ $ $ $ 5 S $ $ $ $ (42,997) (42,997) (43,329) (332) (43,329) 150,919 221,151 177,822 70,232 2009 5 $ 5 S S S 5 5 $ 5 (72,031) (72,031) (83,611) (83,611) (11,580) 158,72386,692 236,903 78,180 66,600 2008 $ (60,283) $ $ $ S $ $ $ $ 5 $ $ (60,283) (57,639) 2,643 243,777 (57,639) 97,357 146,42186,138 2,643 2007 $ (262,76) $ S S $ $ $ 5 $ $ $ $ (117,774) (97,792) (19,982) (117,774) 111,010 185,56187,769 296,571178,797 2006 * * $ 5 $ $ $ $ $ 5 $ $ (97,652) (87,145) (97,652) Attachment F - Airport Profit and Loss - Extrapolated A-87 (87,145) 311,100 124,590 186,51088,858 10,507 2002 * S $ $ 5 $ $ 5 $ $ $ $ (40,292) (40,292) (23,325) (23,325) 127,443 127,625 255,068 231,742 16,966 2004 $ S S S $ $ $ $ 5 $ 5 (33,165) (33,165) (21,208) (21,208) 116,154 219,551198,343 103,398 11,957 Equip Maint, Memberships, Office Expenses, Misc Prof Services, Training, Travel, IF Gen Ins, Postage, Printing, 2003 S * S $ $ $ $ $ $ 5 $ 5 (12,790) (12,790) (4,132)8,657 (4,132) 97,236 229,243 132,007 8,657 2002 *Miscellaneous Expenses - Extra Help, Communications, Household Exp, Copy Service $ S * $ $ S $ 5 s s s s (21,653) (21,653) (4,420) (4,420) 129,200 109,264 87,611 238,464 17,233 2001 17 S 5 $ $ $ S $ $ S $ 5 (22,533) (22,533) applied to all years equally. (33,967) (11,434) 201,242 (33,967) 94,713 106,529 2000 S S $ 5 5 s s 5 S $ 5 (16,265) (16,265) (6,438) (6,438) 98,836 164,718158,281 75,709 65,882 9,827 1999 ** Averaged last 4 years of A-87 and $ $ 5 $ 5 S $ 5 5 $ 5 True Operating Profit/(Loss) True Operating Profit/(Loss) Operating Expense w/o Fuel Operating Profit/(Loss) Operating Profit/(Loss) Operating Revenue Operating Expense Revenue w/o Fuel Fuel Profit/Loss Fuel Profit/(Loss) Fuel Revenue Fuel Expense Taxes, $12,085 Rents, $109,342 Interest, $(932) 2010 2009 Attachment G - Revenues not including Fuel 2008 2007 2006 2002 2004 2003 2002 2001 2000 18 1999 $120,000 $60,000 $20,000 $100,000 $40,000 $80,000 ş Fuel Expense, $69,064 Fuel Revenue, $48,500 2010 2009 2008 Attachment H - Fuel Expense and Revenue 2007 2006 2002 2004 2003 2002 2001 2000 19 1999 $160,000.00 $120,000.00 $80,000.00 $60,000.00 $40,000.00 $20,000.00 $140,000.00 $100,000.00 $0.00 3 $39,824.00 3,686.34 $ 2,182.46 275.10 8,803.20 $24,271.68 605.22 Total Cost per Year S S S S $2,022.64 307.20 733.60 181.87 $3,318.67 per month 22.93 50.44 Total Cost $ S S $ $ per month Labor cost 72.70 43.04 173.60 785.33 478.64 5.43 11.94 Overhead cost = x .31 $ S S Ş S $ S 138.83 $2,533.33 Labor Cost 38.50 560.00 234.50 $1,544.00 17.50 S S S S Ş 96.00 42.00 42.00 34.00 42.00 42.00 Labor Rate Admin Hours for Public Works $ S S $ $ S 11.00 5.00 160.00 193.00 67.00 49.00 485.00 0.23 Estimated Annual Hours Attachment I 5.58 Estimated 13.33 4.08 40.42 16.08 0.42 0.92 Monthly Hours 242.50 80.00 33.50 24.50 2.50 5.50 96.50 December 31, 2010 through Hours Leases, Insurance, Past Dues Invoices/Rental Payments 20 Customer Service Duties FTE = 2080 hours Management Accounting Accounting Office Assistant II Office Assistant II Deputy Director Position Accountant II Accountant I Accountant I Totals Payroll based on Employees, Claims based Actual costs over or under the budgeted Vendors based on number of Warrents, Accounting is based on Journal Entries, Based on two years prior actual costs maintenance, and administration 469 | Purchasing based on hours spent Actual costs, custodial, grounds, This is a 4% annual increase Payroll based on Employees This is a 3% annual increase on number of Warrents 628 Number of Employees costs for 2 years prior Based on % of salary Based on Employees Mail, printing, copier Based on Warrents Square footage A-87 Costs Explanation 272 1,615 136 52,493 24,420 1,640 782 46,843 108 76,913 76,913 FY 2009-10 FY 2007-08 Attachment J ı S S S S S S S S S S $ $ S 5 5 33,846 1,543 72 35,914 583 727 607 291 198 69 40,004 73,850 73,850 FY 2006-07 FY 2004-05 1 S S S S $ S S 5 S $ S 5 S S S 1,338 35 74 19,049 55 4,945 20,230 13,801 39,334 19,104 34,389 37 FY 2001-02 FY 1999-00 1 t S S S S S S S S S S 5 S S S 5 Building Maintenance 21 External Audit Costs Building Allowance County Counsel Central Services Total A-87 costs Budgeted Costs A-87 costs used Carry Forward Year based on Purchasing Difference Personnel Treasurer Auditor CAO ATTACHMENT B · · . a a COUNTY OF SUTTER PUBLIC WORKS DEPARTMENT BOARD MEETING: DECEMBER 7, 2010 PWSS REVIEW: OCTOBER 14, 2010 TO: HONORABLE BOARD OF SUPERVISORS SUBJECT: ADOPT A RESOLUTION ADJUSTING THE RENTS AND FEES CHARGED FOR SUTTER COUNTY AIRPORT LAND FOR COMMERCIAL USE Recommended Action: That the Board of Supervisors conduct a public hearing and, at the conclusion of the hearing, adopt the attached Resolution adjusting the rents and fees charged for airport land used for commercial use effective January 1, 2011; and authorize the not to exceed maximum for the Pooled Treasury / General Fund loan, required to maintain ongoing Airport operations, be increased from $125,000 to $225,000. Background and Discussion: The County Airport budget consists of expenditures and revenues necessary to operate and maintain the Sutter County Airport for general aviation purposes. The Airport facility generates income by charging rental fees for use of the County-owned land, hangars, hangar sites, storage spaces, flight-based commercial land use operations, and tie downs. The Airport operates as a separate enterprise, and as such, must generate revenues to sufficiently cover the costs to operate and maintain the Airport facilities. Over the last several years, the Airport has been using its existing fund balance to balance expenses with revenue; this fund balance was depleted in FY 2008-09. On October 7, 2008, staff presented to the Board of Supervisors a proposal to gradually increase all rates at the Sutter County Airport over an 8-year period with temporary deficits in operation funds covered by a loan from the General Fund. At that time, the Board of Supervisors only approved the proposed rate increase for hangars, private hangars, tie downs and storage spaces. The proposed rate increase for the commercial tenants was deferred to an Ad Hoc Committee. The Ad Hoc Committee met several times with the commercial tenants and reviewed a number of possible commercial rate adjustments. On January 13, 2009, the Board of Supervisors approved the interim commercial rate adjustments recommended by the Ad Hoc Committee, with the understanding that the approved increases were insufficient to bring the operating budget into balance. For this reason, the Ad Hoc Committee recommended that commercial rates for the Sutter County Airport be reviewed again by staff in 2010. An increase in revenue is required to maintain the operations and ongoing maintenance of the Airport and, subsequently, pay back the funds borrowed from the General Fund. The recommended alternative includes an increase in commercial rents over a 5-year period, with temporary deficits in operating funds covered by a loan from the General Fund to be capped at $225,000. This option would increase the monthly rent from the current $.0039 per square foot ($169.88 per acre per month) for land to $.0346 per square foot ($1,507.18 per acre per month) over five years and subsequently, on an annual basis, by the Consumer Price Index (Western Urban Cities - May to April). If the recommended rate increase proposal is approved, it is estimated that the General Fund loan would be repaid by year 9. DEC 0 7 2010 Similar land leases at the Yuba County Airport are charged at the rate of $0.07 per square foot. Additionally the commercial users pay a fuel flowage fee of $0.065 per gallon for fuel they bring onto the airport as a use fee for the airfield. Sutter County does not charge a fuel flowage fee for fuel brought onto the premises, nor is staff proposing one at this time. Yuba County Airport is classified as a regional airport and has a longer runway enabling larger aircraft to use the airport and two runways in total, enabling aircraft to use the airport in more varied weather conditions. There are some additional services available at the airport. Therefore, staff is recommending that the land rental fees not be increased beyond 65% of the Yuba County Airport rate since the value of the Sutter County airport is less to commercial operators. The rents for commercial tenants for office and maintenance bay buildings remain as previously approved and will increase annually by the Consumer Price Index (Western Urban Cities - May to April). The attached spreadsheet showing the revenue increases is based on present values without inflation. No Consumer Price Index increases are proposed for commercial tenants during the phased increases period. The attached resolution only extends to year 4. Rates would have to be revisited in FY 2014-15 for continued adjustment. In order to maintain Airport operations, the Board approved a loan from the Pooled Treasury / General Fund on June 23, 2009 with a not to exceed maximum of $125,000. In FY 2009-10, the Sutter County Airport budget used $102,103 of this loan balance. If the proposed rate increases are approved, the necessary loan amount will increase over the next five years to a not-to-exceed peak of $225,000 at which time the Sutter County Airport will begin to repay the loan. Letters including this staff report and proposed rate increases, along with the date of the Public - Works/Support Services Committee meeting, were sent to the three affected commercial tenants. On August 12, 2010, the Public Works / Support Services Committee (Committee) met with affected airport lease holders. After discussion, the Committee directed staff to look at two additional alternatives. The first alternative considered charging commercial land leases holders solely for the footprint of their buildings and structures. Typically, leases for land include all the land in the lease and rental charges are for the footprint of the land used by the lessee, not the footprint of buildings and structures owned by the lessee. The other airport in the area, Yuba County Airport, leases its land at rates based on the total land used by the lessee. The result of using the buildings/structures footprints also does not provide sufficient revenues to balance the budget for the airport as shown in the attached Rates and Loan Balance Projections. It projects that the Airport Fund would continue to operate at a loss and the debt would climb to $261,164 by year 8. The second alternative reduces the footprint charged to land actually used for buildings, storage, parking, operations, and equipment staging. This is the recommended alternative as it bases the rental fees on the actual land used by the lessee, as is common in practice. The result of using this method to project revenues is included in the attached Rates and Loan Balance Projections. It projects that the airport fund would stop operating at a loss and the General Fund debt would be paid off by year 9. To execute this reduction in leased area, Onstott Dusters leased area would be reduced in 2012-2013. Twin Cities leased area would be reduced in 2016-2017 when their current lease expires. After a second review by the Committee, the Committee recommended approval of the attached rate schedule which assumes some reductions in leased footprints at the times specified above. Prior Board Action: The Board of Supervisors adjusted some of the Airport Commercial rates on January 13, 2009 and instructed staff to review these rates again in 2010. Alternatives: The Board could increase the General Fund loan or grant funds to the Airport. Other Department and/or Agency Involvement: No other County Departments or Agencies would be affected by an adjustment in the Commercial rates at the Airport. Action Following Approval: Direction given by the Board would be implemented by the Public Works Department. Fiscal Impact: Staff estimates the recommended rate increases will, over the 9-year period, increase Airport revenues sufficiently to offset expenses. It is estimated that the Pooled Treasury / General Fund loan supporting ongoing Airport operations would hit its highest level of approximately $225,000 in year 5. The loan would be paid in year 9. Specific estimated annual debt amounts are noted as "debt balance" on the "Rates and Loan Balance Projections" spreadsheet attached. Committee Action: On August 12, 2010, the Public Works / Support Services Committee (Committee) met with affected airport lease holders. After discussion, the Committee directed staff to look at two additional alternatives discussed in the Discussion section above, and return as quickly as possible with the results. The Committee again reviewed this item at its meeting of October 14, 2010 and recommended for approval as an appearance item. The Committee further recommended staff perform an interim review of Airport Commercial rates near the end of calendar year 2012. Prepared by: Robert Starr, Deputy Director for General Services Submitted by, DIRECTOR OF PUBLIC WORKS Attachment: Resolution Rates and Loan Balance Projection P:\ADM\NISTRATION\Staff Reports\Staff Reports FY 11\12 Dec meetings\12-07.2.0 SR Airport Cmcrl rate v3.doc . BEFORE THE BOARD OF SUPERVISORS COUNTY OF SUTTER, STATE OF CALIFORNIA RESOLUTION OF THE BOARD OF ) SUPERVISORS INCREASING THE ) RENT CHARGED FOR RENTING ) RESOLUTION NO. ____ AIRPORT COMMERCIAL LAND ) WHEREAS, The Board has previously adopted Resolution 09-004 on January 13, 2009 establishing the Commercial rents and fees to be charged at the Sutter County Airport; and WHEREAS, The Board of Supervisors desires to revise the rents for land only for commercial tenants adopted in Resolution #09-004. NOW, THEREFORE, BE IT RESOLVED, by the Board of Supervisors of the County of Sutter that the following rents and fees be charged at the Sutter County Airport for commercial tenants renting land only, superseding Resolution 09-004: Effective January 1, 2011 Type Monthly Rent unit Commercial Land - Perimeter / Interior $ 0.0070 square foot Effective July 1, 2011 Type Monthly Rent unit Commercial Land - Perimeter / Interior $ 0.0119 square foot Effective July 1, 2012 Type Monthly Rent unit Commercial Land - Perimeter / Interior $ 0.0191 square foot Effective July 1, 2013 Type Monthly Rent unit Commercial Land - Perimeter / Interior $ 0.0277 square foot Effective July 1, 2014 Type Monthly Rent unit Commercial Land - Perimeter / Interior $ 0.0346 square foot The above commercial rents for land effective July 1, 2014 shall be increased annually by the Consumer Price Index (Western Urban Cities-May to April) effective July 1st of each year thereafter unless otherwise revised by the Board of Supervisors. BE IT FURTHER RESOLVED, by the Board of Supervisors of the County of Sutter, that the following rents be charged at the Sutter County Airport for commercial tenants renting buildings only, superseding Resolution 09-004: Effective July 1, 2010 (current rates) Type Monthly Rent unit Office Building $0.3500 square foot Maintenance Bay Building $0.1200 square foot The above commercial rents for buildings shall be increased annually by the Consumer Price Index (Western Urban Cities-May to April) effective July 1st of each year unless otherwise revised by the Board of Supervisors. BE IT FURTHER RESOLVED, by the Board of Supervisors of the County of Sutter that the following deposits be remitted at the Sutter County Airport for new tenants renting Building Office or Storage Space as follows: Building Office one month rent Storage Space Security Deposit one month rent PASSED AND ADOPTED by the Board of Supervisors of the County of Sutter, State of California, this _____ day of _____, 2010, by the following vote: AYES: NOES: ABSENT CHAIRMAN, BOARD OF SUPERVISORS ATTEST: COUNTY CLERK