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HomeMy WebLinkAbout10811ORDINANCE NO. 10811 AN ORDINANCE AMENDING T-HANGAR AND STORAGE UNIT RENTAL RATES AT 31501 BRYAN CIRCLE AT THE PUEBLO MEMORIAL AIRPORT, IN THE CITY AND COUNTY OF PUEBLO, AND REPEALING RESOLUTION 9389 WHEREAS, the City owns and operates the Pueblo Memorial Airport ("Airport"); and WHEREAS, no official increase in fees has occurred since 2001; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Effective January 1, 2025, the T-Hangar rental fees for T-Hangars at 31501 Bryan Circle will be $265 monthly and the storage unit will be $200 monthly, with a CPI increase every 5 years commencing on January 1, 2029 based on the Consumer Price Index for all Urban Consumers (CPI_U), All Items, as published by the Bureau of Labor Statistics of the United States Department of Labor. SECTION 2. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Ordinance to effectuate the policies and procedures described therein. SECTION 3. This Ordinance shall become effective on the date of final action by the Mayor and City Council, and Resolution 9389 is hereby repealed. All net proceeds derived from rental rates set forth in this Ordinance will be used for the operation, maintenance, and improvement of the Airport. Action by City Council: Introduced and initial adoption of Ordinance by City Council on September 23, 2024. Final adoption of Ordinance by City Council on October 15, 2024. ____________________________ President of City Council Action by the Mayor: Approved on _______________. Disapproved on ______________ based on the following objections: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________________________ Mayor Action by City Council After Disapproval by the Mayor: Council did not act to override the Mayor's veto. Ordinance re-adopted on a vote of ____________, on _____________ ____________________________ President of City Council ATTEST ________________________________ Deputy City Clerk City Clerk's Office Item # R2 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: October 15, 2024 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Greg Pedroza, Director Aviation SUBJECT: AN ORDINANCE AMENDING T-HANGAR AND STORAGE UNIT RENTAL RATES AT 31501 BRYAN CIRCLE AT THE PUEBLO MEMORIAL AIRPORT, IN THE CITY AND COUNTY OF PUEBLO, AND REPEALING RESOLUTION 9389 SUMMARY: The City owns a Hangar located at 31501 Bryan Circle Ave on the Pueblo Memorial Airport consisting of 9 closed T-Hangars, a storage unit, three office suites. The T- Hangars can be leased out on a month-to-month basis to general aviation pilots for the storage of their personal aircraft. Current T-Hanger rent rates at the Pueblo Memorial Airport were last established via Resolution 9389 on September 10, 2001. There has not been an approved raise of rent rates in 23 years. Current rent rates are established at $185 per month for a T-Hangar that is approximately 30 feet deep and 40 feet wide at the widest point. New T-Hangar rental rates of $265 per month would be effective January 1, 2025. New storage unit rental rates would increase from $125 per month established under Resolution 9389 to $200 per month effective January 1, 2025. All airport leased spaces are designated primarily for aeronautical use. Rental rates would undergo a CPI adjustment every 5 years commencing on January 1, 2029, based on the Consumer Price Index for all Urban Consumers (CPI_U), All Items, as published by the Bureau of Labor Statistics of the United States Department of Labor. PREVIOUS COUNCIL ACTION: City Council has approved the current closed T-Hangar and storage unit rent rate through Resolution 9389 on September 10, 2001. BACKGROUND: The T-Hangars were built in 1978 with a 40-year useful lifespan. Major capital improvements have not been made with the exception of roof repairs after storm damage. These hangars are metal construction with asphalt floors. FINANCIAL IMPLICATIONS: CPI calculations indicate that monthly rent should increase to $332.59, but depreciation based on the age and condition of the hangars needs to be accounted for; a fair market value based on these factors is determined to be $265 with a CPI adjustment every 5 years. Nine T-Hangars generating $265 each, monthly could increase revenue to $28,620 annually. In 2023, leasing the 9 T-Hangars generated $17,400. Rent derived from these rates are deposited in the General Fund and budgeted to the Airport annually. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved, the T-Hangar rents would not be increased. RECOMMENDATION: The Department of Aviation recommends approval of this Ordinance. ATTACHMENTS: None