Minutes 07-21-00 Airport Advisory Committee 1. Open meeting at 0902, 07-21-00. 2. Present: Scully, Ahrens, Trent, Loy, Goncharoff. Excused absences: Brewer, Winding. 3. Minutes of previous meeting approved. 4. Correspondence: A. Mendocino County Historical Society will feature Dave Thorpe and the Little River Airport at "First Friday" in Fort Bragg on Friday, 4 August 2000, from 1730 to 2000 hrs at the Guest House Museum on Main Street. B. Minutes of the Public Resources Committee Meeting: PUBLIC RESOURCES COMMITTEE MINUTES - June 19, 2000 Page 511 Little River Airport Advisory Committee 2. Preliminary Draft Report on Additional Hangars at Little River Airport Mr. Tim Scully, Chair of the Little River Airport Advisory Committee; Advisory Committee Members Mr. David Brewer, Mr. Tom Goncharoff, Mr. Richard Ahrens, and Mr. Trey Loy; and Mr.. Chuck Boyer, Department of Transportation Business Services Manager, were present to address this item. Mr. Scully provided an overview pertaining to the feasibility of the installation of additional hangars at Little River Airport as researched by the Little River Airport Advisory Committee. Mr. Scully also: Cited four possible hangar locations, noted construction issues pertaining to each locatiom and specified which could be the most cost effective; referenced the Master Plan as it pertains to the four specific locations; requested guidance pertaining to continuation of the process; noted that two issues relating to ownership and financing need to be resolved; noted that there is room along the taxi-way to add 32 hangars and increase tie-downs by 16. Mr. Loy noted that County ownership of the proposed hangars would allow the Advisory Committee to approach Caltrans for possible financing, but the Committee needs direction as to who will be designated to work with Caltrans - The Advisory Committee or the Department of Transportation. Mr. Boyer noted that the official direction should come from the Board, and that Transportation staff has not looked into obtaining financing through CalTrans, however, he would be willing coordinate contact between the Advisory Committee and the proper Caltrans personnel so that the Little River Airport Advisory Committee members can explore the avenue of obtaining financing for hangar construction. Mr. Scully also reported that existing hangars are equipped with utilities (phone and electric) and that the issue of utilities needs to be addressed for the proposed hangars. Supervisor Shoemaker recapped the discussion noting that: Preference appears to be for a County owned facility, fully utilitized; effort is needed to coordinate with the Department of Transportation (DOT) staff to talk to Caltrans regarding their loan program; research is needed to obtain more defined cost estimates for submittal to Caltrans. individual utilities for hangars need to be handled by owners with the County providing the main utility line; each hangar is to be an independent unit; County is the developer; all hangars are to face the taxi-way if the proposal meets the criteria set by the Master Plan and the Department of Transportation; additional analysis is needed in obtaining construction costs; the Advisory Committee needs to work with DOT for Master Plan placement of hangars; and that the Advisory Committee be designated to obtain estimates for utilities and construction costs. Supervisors also suggested the feasibility of having the Little River Airport Advisory Committee obtain guidance from the Ukiah and Willits Airport staff regardlng their process for obtaining construction estimates, and information pertaining to installation of utilities, and to also address the feasibility of utilization of larger hangar, for purposes other than just housing airplanes. Recommendation: The Committee directed that: The Little River Airport Advisory Committee work with the Department of Transportation for Master Plan placement of hangars and the number of hangars to be added; the Advisory Comrnittee be designated to obtain estimates for utilities and construction costs, verifying construction costs with local airports; individual utilities for hangars to be arranged by owners with the County providing the main utility line; each hangar is to be an independent unit; feasibility of the Caltrans loan programs be considered for construction financing; if funding codes do not fit our guidelines for access, that a private/public partnership be considered; the Department of Transportation provide a progress report at the Public Resources Committee in August. C. Scully to DOT: questions re CalTrans loans. D. DOT to Scully: CalTrans contacts. E. Scully to CalTrans: questions re hangar loans. F. CalTrans to Scully: loan program details. G. CalTrans to Scully: more loan program details. From: Mike_Farmer Sent: July 17, 2000 9:25 AM To: tim.scully Cc: Gwyn_Reese; boyerc Subject: State loan for hangar construction I'll send the following to you by mail: a. Two-page description of Caltrans' airport loan program. b. One-page description of the loan process. c. An economic feasibility worksheet. Economic feasibility is a key issue for Little River. This has two components: (1) strong evidence of customers (typically, a waiting list for which prospective tenants have to pay two months' rent), and (2) a rental rate that covers the cost of repaying the loan. Once you get an idea of the construction cost, I can prepare a break-even analysis that shows the minimum, acceptable rental rate. Most airports build metal hangars but that might not be a viable option at Little River. Also, the cost estimate should include all site preparation, especially if water and/or electrical power will be provided. Note: I often find that rural airports can't find enough customers who are willing/able to pay a rental rate that covers the cost of repaying a State loan. The interest rate for the loan will depend on the rate that the State pays for general obligation bonds. Currently, the rate is about 6%. We charge simple interest. The loan can run for 17 years, but we prefer a shorter term if possible. Let me know when you have a cost estimate and I'll prepare the break-even analysis. Once you have a firm waiting list, I'll send the application form to Charles Boyer. The application has to come to us from the County and be approved by the Board of Supervisors. H. DOT to Scully: meeting at Airport to review hangar location options; Townsend + Boyer to meet with Scully. 5. Discussion of item 4F and 4G above, CalTrans loan program. 6. Tasks assigned: A. Ahrens to investigate Ukiah Airport new hangars. B. Ahrens or Brewer (if he will volunteer) to investigate new hangars at Willits. C. Loy to investigate concrete pads. D. Ahrens to invite Naomi Jarvie to the next meeting. 7. GPS status: DOT has completed and sent a letter to the FAA, answering the FAA's questions. 8. Next meetings: 08-18-00, 09-15-00, 10-20-00. 9. Meeting closed at 1032. The agenda for this meeting is: Approve the minutes of the last meeting Communications (letters, FAXes, etc, sent/received since last meeting) Additional hangars at the airport will be the main focus of this and the next few meetings. Reports from subcommittees Public comment Agree on a date, time and place for the next meeting Agree on agenda for next meeting Members of the Little River Airport Advisory Committee ------------------------------------------------------ Dick Ahrens pilot, airport neighbor Dave Brewer pilot, lives near airport Tom Goncharoff Trey Loy non-pilot, lives near airport Tim Scully inactive pilot (lost medical), computer programmer, lives near airport Willow Trent airport neighbor, non-pilot Susan Winding airport neighbor, non-pilot, business owner --------------------------------------------------------------------------- --------------------------------------------------------------------------- From: Chuck Boyer Sent: July 07, 2000 10:26 AM To: tim.scully ; townsens Subject: RE: moving forward with hangars Tim, Caltrans Aeronautics Program Contacts for hangar loans: 1. Mike Farmer, E-mail-Mike_Farmer 2. Gwyn Reese, E-mail-Gwyn_Reese Chuck -----Original Message----- From: tim.scully Sent: Wednesday, July 05, 2000 4:54 AM To: boyerc; townsens Subject: moving forward with hangars I'm following up on the June 19 Public Resources Committee meeting. Can you please let me know when and who to contact at CalTrans regarding the Stste's low interest loan program for hangars? I'd like to explain to them that our committee is researching the possible construction of 10-16 County owned rental hangars at Little River Airport and that we'd like to understand the criteria, terms and the loan application process for low interest loans from the CalTrans aviation program. I'm also interested in knowing if DOT has an opinion regarding the best location for the additional hangars, and if there are any further aspects of the location issue which you need the AAC to research. It was good seeing you at the meeting. I hope all is going well for you. ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- From: Tim Scully Sent: July 17, 2000 10:05 AM To: 'Mike_Farmer'; Tim Scully Cc: Gwyn_Reese; boyerc Subject: RE: State loan for hangar construction Thank you, that's very helpful. We'll get the worksheet back to you once we have all the required information in hand. > -----Original Message----- > From: Mike_Farmer > Sent: July 17, 2000 9:25 AM > To: tim.scully > Cc: Gwyn_Reese; boyerc > Subject: State loan for hangar construction > > > > I'll send the following to you by mail: > a. Two-page description of Caltrans' airport loan program. > b. One-page description of the loan process. > c. An economic feasibility worksheet. > > Economic feasibility is a key issue for Little River. This has two > components: (1) strong evidence of customers (typically, a waiting list > for which prospective tenants have to pay two months' rent), and (2) a > rental rate that covers the cost of repaying the loan. Once you get an > idea of the construction cost, I can prepare a break-even analysis that > shows the minimum, acceptable rental rate. Most airports build metal > hangars but that might not be a viable option at Little River. Also, the > cost estimate should include all site preparation, especially if water > and/or electrical power will be provided. Note: I often find that rural > airports can't find enough customers who are willing/able to pay a rental > rate that covers the cost of repaying a State loan. > > The interest rate for the loan will depend on the rate that the State pays > for general obligation bonds. Currently, the rate is about 6%. We charge > simple interest. The loan can run for 17 years, but we prefer a shorter > term if possible. > > Let me know when you have a cost estimate and I'll prepare the break-even > analysis. Once you have a firm waiting list, I'll send the application > form to Charles Boyer. The application has to come to us from the County > and be approved by the Board of Supervisors. > > > tim.scully on 07/17/2000 04:52:52 AM > > To: Gwyn_Reese , Mike_Farmer > cc: boyerc s, thorpe > tim.scully > Subject: information request re low interest loans for > hangar construction > > > I'm writing to you as chair of the Little River Airport Advisory Committee. > The Mendocino County Public Resources Committee has asked our committee to > investigate funding for building additional hangars at Little River Airport > (O48). Chuck Boyer of the Department of Transportation gave me your > names and email addresses. > > We have researched the demand and have data supporting the immediate > demand for from 10 to 16 additional hangars. We have researched sites on > the airport and have identified two good sites for additional hangars. > > Can you send me information on your low interest loan program for funding > hangar construction? We are interested in learning what we need to do to > qualify for such a loan, the limitations and expectations for the program. > > Thank you for your help. > > Respectfully Yours, > > Tim Scully, > Chair, LRAAC > > ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- From: Dave Brewer Sent: July 14, 2000 2:01 PM To: Tim Subject: AAC Meeting I will be out of town 7/19 thriugh 7/30 and hence will miss the meeting next Friday. I will be here for the August meeting. Dave ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- From: Chuck Boyer Sent: July 18, 2000 4:40 PM To: tim.scully Subject: Proposed New Hangar Sites Tim, Would it be possible for you to meet with Stan Townsend and me on Thursday (7/20/00) or Friday (7/21/00) morning at 9:30 AM or afternoon at 1:00 or 2:00 PM at Little River Airport to discuss the proposed hangar sites? Chuck ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- California Department of Transportation Aeronautics Program Description of the Local Airport Loan Program Local Airport Loan Account The Local Airport Loan Account is a revolving fund that was initiated with seed money from the Aeronautics Account. As principal and interest payments are returned to the Loan Account, additional loans can be provided to airports. (The Aeronautics Account is primarily supported by tax revenues which are collected on general aviation (GA) fuel. GA jet fuel is taxed at 20 cents per gallon and avgas is taxed at 18 cents. These taxes generate about $7 million per year.) Sponsor Eligibility The airport must be owned by an eligible public agency (e.g., a city, county or airport district). The sponsor must: + Ensure that the airport is open to the public without restriction. + Have a valid State permit for the airport. + Adopt rules that give it sufficient control over the operation of the airport. + Have height restrictions around the airport which are adequate to ensure that operations can be conducted without any hazardous obstructions. + Certify eligibility with a form (DOA-0007) that is provided by the Department. Uses and Restrictions Nearly any type of project for construction and land acquisition that benefit the airport and improve its self-sufficiency is eligible. "Land banking", automobile access roads, automobile parking areas, and facilities to accommodate airlines, however, are not eligible for a State loan. A loan can provide the sponsor's match for a project that is funded by an FAA grant. Thus, an airport could receive a federal AIP grant for 90% of a project, a state-funded AEP Matching grant for 4.5% of a project, and a loan for the remaining 5.5% of a project. For a revenue-producing project, a separate account must be established to receive income from the project. Expenses for maintaining the project may be paid from this separate account, but all revenues received must be held in trust for payment of the loan's principal and interest until the loan is repaid in full. No limit on the size of a loan has been established in either law or regulation. The Department determines the amount for each individual loan in accordance with the feasibility of the project and the sponsor's financial status. Economic feasibility is an especially strong factor in the approval of loans for revenue-generating projects such as hangars and fueling facilities. A checklist for demonstrating economic feasibility is available from the Program. Matching Requirement No local match is required for a loan. Funding Cycle Loans may be requested from the Department at any time using the appropriate form (DOA-0019 for matching loans, DOA-0020 for revenue-generating projects, and DOA-0013 for airport development). Loan applications are reviewed by the Department. Then, the applications are presented at periodic public hearings that the Department conducts. A matching loan may be requested when the sponsor transmits its grant application to the FAA, but the loan will not be paid by the State until the AIP grant has been accepted by the sponsor. Pay-back Requirements A pay-back schedule is included in each Loan Agreement. Generally, the term of a loan will vary between 8 and 17 years depending upon the amount of the loan. Larger loans have a longer pay-back period. Loans may be repaid early without penalty. Simple interest is charged on the outstanding balance of the loan's principal. The interest rate is based upon the State bond sale that occurs before the Department prepares the Loan Agreement. Loans are subject to State audit. Records that substantiate the expenditure of loan monies should be retained until three years after the retirement of the loan. Funds may have to be repaid by the sponsor if an audit finds that State law or generally accepted accounting principles have been violated. For more information about grants and loans, call, write or e-mail: California Department of Transportation Aeronautics Program MS #40 PO Box 942874 Sacramento CA 94274-0001 e-mail: Mike. Farmer@ dot.ca.gov web: www.dot.ca.gov/aeronautics ---------------------------------------------------------------------------- Department of Transportation Aeronautics Program Process to Apply for Airport Loans This describes the application process for loans from the Local Airport Loan Account. The Loan Account is a revolving fund that relies upon the payment of interest and principal on outstanding loans to fund new requests. The process is: 1. Sponsor Submits Application. Sponsors may apply at any time. a. Matching loans for local match to FAA grants. Use form DOA-0019 and enclose: o Local governmental approval (resolution or minute order). o Environmental documentation. Include a copy of the EIF, Negative Declaration, or Notice of Exemption. The sposnor must file a Notice of Determination with the Aeronautics Program before the Program can approve the loan. o Copy of FAA grant award or pre-application. (Loan Agreement cannot be finalized until the FAA grant is awarded.) b. Revenue-Generating loans. Use form DOA-0020 and enclose: o Local governmental approval (resolution or minute order). o Environmental documentation. (Same as for "matching" loans.) o Documentation of the project's engineering and economic/financial feasibility. (Use of the Program's Checklist for Economic Feasibility is one method to demonstrate economic feasibility.) o FAA approval (ALP and/or Form 7460-1 "Notice of Proposed Construction or Alteration). o Sketch/drawing showing the project's location on the airport. 2. Internal Review. The Aeronautics Program reviews the application internally to see if the project is feasible and if funds are available in the Loan Account. FAA may be contacted to confirm the award of AIP grants. If the application is acceptable, the term of the loan is set at the close of the internal review. At this point, the Program can provide a tentative approval subject to the public hearing and approval of the Loan Agreement by the State's Department of General Services. 3. Public Hearing. The Aeronautics Program conducts a public hearing on the loan. Typically, hearings are held every two months but they can occur more or less frequently depending on loan activity. Airport staff do not have to attend the public hearing. 4. Loan Agreement. Once funds become available and the sponsor is ready to proceed with the project, the Program prepares a Loan Agreement and sends it to the sponsor. The interest rate is set at this time and is equal to the interest rate for the most recent sale of State bonds. 5. Acceptance by the Sponsor. The local governing body must accept the loan via resolution or minute order (if acceptance was not delegated to a staff person in the initial resolution). The airport returns the approved Loan Agreement to the Aeronautics Program. 6. Department of General Services (DGS). The Manager of the Aeronautics Program signs the Loan Agreement and forwards it to DGS, acting as the State's attorney for airport loans. 7. Payment. Once the Loan Agreement is signed and returned from DGS, the Program requests payment to the airport from the State Controller via the Department's accounting office. 8. Repayment. The first payment on the loan is due one year from the date of the State Controller's warrant. The Department will invoice the airport for all payments. May 1999 ------------------------------------------------------------------------------ Department of Transportation Aeronautics Program Checklist for Economic Feasibility Revenue-Generating Loans Public Entity ______________________ Airport_______________________ A. Hangar Loan --------------------------------------------------------- Type & Number of Requested hangars_________________________________ (T-hangar, corporate, etc.) Existing Hangars _____ Rental Rate(s) _____ Based Aircraft_____ Waiting List for Hangars? Yes-No (circle one) Number on waiting list ______ Deposit to be on waiting list $______ Estimated Costs: Hangar Construction $_______ Site Prep $________ Other Construction/Preparation Costs $_______ Total Cost $_______ Proposed Monthly Rental Rate, per Hangar $________ Proposed Future Increases in Rental Rate _________ (for example, 3% per year) B. Other Revenue-Generating Loan ------------------------------------------- Project Description_______________________________________________________ (for fueling facilities include types of fuel to be sold) Estimated Cost of Project $_____ Projected Monthly Net Income from Project $______ (or, differential income if this project affects an existing operation, e.g. the project replaces an existing fueling facility) Projected Future Increases in Monthly Net Income $_______ Check here if additional sheets are attached.__ The Department may request more information beyond this checklist. Documents to be submitted with loan application (form DOA-0020): local approval, layout sketch of project, and CEQA compliance. 09/14/98