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11-A-2&3 Airport ReportAGENDA INFORMATION SHEET PROJECT: Review survey information and recommendations of the Airport Advisory Board regarding private hangars; review survey information regarding Airport Advisory Board membership; review information regarding fees for T-Hangars at Cox Field Airport. BACKGROUND: At City Council's March 26, 2001, City Council instructed that City Staff undertake a study, survey, and review of the City's current policy regarding construction of private hangars at Cox Field Airport. Among the directives was for the City Staffto survey other cities with comparable or similar airports to determine the basis by which private hangars are constructed at those airports. In addition to conducting the survey and reporting the results to the Council, the Council also requested the staffto seek recommendations from the Airport Advisory Board, separate and apart from the survey, as to critical issues related to the policy for constructing private hangars. The Council also charged City Staff to include in the survey inquiries regarding the size and nature of Airport Advisory Boards at other airports, as well as to tabulate information related to the fees for use of T-Hangars at those airports. A recommendation from the Airport Advisory Board for use of T-Hangars at those airports. A recommendation from the Airport Advisory Board for use of the City's T-Hangars was already pending. The survey was conducted on the airports recommended by Ms. Tammie Stone, a representative ofthe airport branch ofthe Texas Department of Transportation. While all information requested in the survey was not available or was not received from the airports surveyed, significant information was accumulated. In addition, the Airport Advisory Board, during the process of considering its recommendations, also recommended additional cities to be included in the survey. Subsequent to the completion of the survey, and following several meetings with the airport advisory board at which an issue paper was considered by the board and recommendations made on the issues presented, the information has been accumulated and is summarized in a number of attachments to this agenda information sheet. DESCRIPTION: The following discussion summarizes the results, by the use of exhibits or text, of the survey of various cities on issues related to the policy for private hangars. It also summarizes other information related to the membership of the Airport Advisory Board and the fees for T-Hangar rentals: 1. Summary of current agreements attached to this agenda information sheet is Exhibit 1, which is a tabular summary of the existing leases between the City of Paris and various occupants of private hangars at the airport. Review of Exhibit 1 will allow the reader to determine how the agreements have been revised over the years, to compare the size of the hangars to the length of the lease, and to issues related to the amount of insurance carried by the occupants. As you will note, the leases extend for initial terms of between twenty- five (25) and fifty-five (55) years, with additional options from anywhere from ten (10) to twenty (20) years. The maximum possible terms under the outstanding and existing leases are anywhere from thirty-five (35) years in length to seventy (70) years in length. Other -1- information pertinent to the remainder of the discussion is contained in Exhibit 1 for future reference. II. Current Policy. The current policy of the City with regard to long term hangar leases is set out in Resolution No. 96-011, a copy of which is attached hereto as Exhibit 2. As stated in the lease, the minimum primary term was established at twenty-five (25) years, with two additional ten (10) year options, or a total of forty-five (45) years. Rental would be paid during the first ten (10) year option at an amount stated as the "fixed rental", and the second ten (10) year option would likewise require some rental at the amount of $.06 per square foot (it is unclear whether this amount would be paid annually or monthly) or something established as the "fair market value" at the time the option is exercised. There is no language in the policy that describes how either fair market value or the fixed rental is to be established. The policy establishes a maximum primary term of forty-five (45) years, with a possibility of two additional fifteen (15) year options, or a total potential term of seventy-five (75) years. Again, payment of nominal rent would be due during the two option periods, again based on fixed rentals and fair market value. Finally the policy contained some rather undefined standards stating that the size of the hangar, type and number of aircraft, use of both the hangar and the aircraft, and the estimated income to the airport operation (presumably as a result of having the hangar there) would be taken into account when determining the lease terms. The current policy is vague on a number of the pertinent issues that needed to be considered in determining the term of a lease. Indeed, a review of Exhibit 1 fails to show a discernable consistent trend with regard to the length of the term of the lease as compared to say the size of the hangar, although there is a general trend that the larger the hangar, the longer the term. Likewise, there is no consistency in the amount of payments set out in the leases for the future options. It should also be pointed out that the option payments provided for in the leases do not provide for escalation based on any sort of consumer price index of the option payments. That is, presumably an optional payment of $100 per month beginning in 2019 will not represent near the amount of money that $100 per month represents in the year 2001. Current policy is there for Council's review and further deliberation. III. Exhibit 3 to the Agenda Information Sheet contains the results of the Legal Department's survey of other cities. You will note that information is included in the survey for some seventeen (17) municipal or municipal related airports. Inquiries were made regarding whether or not private hangars were available; whether or not ground leases were required incident to construction of the private hangars; whether or not ground lease rent was paid and the amount of that rent; the term of the primary lease; whether or not the lessee was responsible for taxes, if any were due; whether or not ownership of the hangar reverted to the City and when; the kind of insurance required and information related to the existence of an airport advisory board. Without attempting to submit this information to any kind of detailed and systematic analysis, I think certain trends can be identified. First of all, all of the responding airports had private hangars available. Secondly, all the responding airports -2- had ground leases incident to those hangars. All but one other city and the City of Paris required the payment of ground lease rentals. The amount of the ground lease rental payment varied considerably, from as low as $.07 per square foot per year to amounts based on the actual appraisal of the property. A number of the leases charged a ground lease in the neighborhood of $.10 to $.12 per square foot per year, with a CPI adjustment at some time interval. The terms of the leases also varied, there is no mention of options for extension. Terms were anywhere from ten (10) years to forty-five (45) years, with the majority of the lease terms from twenty (20) to thirty (30) years. All of the leases with the exception of one other city and the City of Paris had language in the leases requiring the lessee to be responsible for any taxes assessed, if any, as a result of the leasehold arrangement. All the leases had a provision for the ownership of the hangar to pass to the city at the expiration of the lease; most of the leases provided for an outright transfer at the end of the lease, while some had provisions dealing with some financial adjustment related to the transfer. With regard to insurance, some requirements were quite significant as to the amount of insurance required; others were less stringent. A discussion of the Airport Advisory Board information will be at a later time in this Agenda Information Sheet. IV. Issues with regard to a policy for private hangars. A series of issues were submitted to the Airport Advisory Board, as well as presented to the airports that were surveyed, for consideration in developing a more definitive policy for private hangars. A blank issue page is appended to this Agenda Information Sheet as Exhibit 4. Exhibit 4 was the document utilized in surveying other cities, as well as soliciting the recommendations from the Airport Advisory Board. Reference in this section will be made to Exhibit 2, the current policy; Exhibit 3, the survey of other cities; and Exhibit 5 attached hereto, the recommendations of the Airport Advisory Board. 1. Term length. a. Current Policy - minimum primary term twenty-five (25) years with two (2) ten (10) year options; maximum primary term forty-five (45) years with two (2) fifteen (15) year options. Total possible terms of forty-five (45) years to seventy- five (75) years. Considerations in setting the term includes size of hangar, type and number of aircraft, use of the hangar and aircraft, and estimated income to the airport. b. Survey Results - consists primarily of fixed primary terms without options. The terms are from ten (10) year to forty (40) years, with the predominate term twenty (20) to thirty (30) years. -3- c. Airport Advisory Board Recommendation - hangars up to 5,000 square feet, twenty-five (25) year terms; greater than 5,000 square feet up to 20,000 square feet, thirty (30) year terms; over 20,000 square feet, negotiable. City Council should consider what arrangements should be adopted for inclusion in the future policy with regard to the duration of the lease. 2. Options. a. Current Policy - provides for two (2) ten (10) year options at expiration of the minimum primary term; two (2) fifteen (15) year options at the expiration of the maximum primary term. b. Survey - options were not encountered in a significant number of the cities surveyed. c. Board Recommendation - the Board recommended their be no options in new lease agreements. However, the Board did recommend that at the end of the initial term, the City would seek competitive bids for the next primary term of the hangar, and based on those bids, the tenant who had originally built the hangar and was then in the hangar would have the opportunity to exercise, within thirty (30) days, a right of first refusal. The City Council needs to determine whether or not options should be continued to be offered as part of the lease term. Should plans for the hangar go through the City's typical building plan review process. a. Current Policy - is silent on this issue. b. Survey - they were not included in the survey per sea, generally the information indicated that all such hangars had to comply with the specific standards applicable to them in each respective building code. c. Board Recommendation - the Board recommended that all hangars goes though the City's building plan review, including permits and fees. The Board also recommended standards specific to hangars be developed. The City Council needs to determine whether or not construction of hangars must be in full compliance with the City's building code, and whether or not additional standards should be developed for hangars. -4- 4. Should special consideration be given in hangar leases which are used for business or economic development purposes in contrast to purely personal use? What should those considerations be? The City's current lease does not prohibit living quarters per sea, and some people live in the hangars. Should future leases allow this? a. Current Policy - the current policy makes vague reference to issues such as the use of the hangar and the income to the airport operation, but no specific reference or special consideration given to hangars associated with business or economic development activity as opposed to personal use. b. Survey - certain cities do give preference to hangars associated with economic development or business activity, but they are not a majority. It was commented that doing so is difficult to enforce. Likewise, none of the cities surveyed indicated the hangars were used for living quarters. c. Board recommendation - the Board recommended future leases prohibit tenants from living in the hangar or having full living quarters in the hangar. However, such items as a sink, bathroom, or associated facility to allow temporary over- night stay or perhaps social use of a portion of the hangar was recommended. The City Council needs to consider and determine whether or not there should be some sort of incentive for business use hangars. The Board acknowledged that if such an incentive was appropriate, it should probably come more from the Paris Economic Development Corporation. Likewise, the Council needs to determine whether or not future leases will allow tenants to live in the hangars. 5. Should there be a specific beginning and end date for construction of a private hangar? a. Current Policy - the current policy is silent on this issue. b. Survey - certain cities responded that they do require a beginning and end date for construction of the private hangar. c. Board Recommendation - the Board recommended that each lease require the construction of the hangar to be completed within eighteen (18) months. 6. Should the lease provide for ground lease payments? Ground lease payments or payments made for lease of the ground on which the improvement is located. -5- a. Current Policy - the current policy does not require ground lease payments. None of the current leases for private hangars in the City of Paris require the payment ground lease payments. b. Survey - almost all of the cities surveyed require the payment of ground lease payments for private hangars. The City has received informal information from those associated with or working with TxDot indicating that future leases should include the requirement for ground lease payments. c. Board Recommendation - the Board recommended a ground lease payment of $.12 per square foot per year, adjusted every five years with a Consumer Price Index adjustment. The City Council must consider whether or not ground lease payments should be charged for future leases, and determine the amount of that lease payment. 7. Should the lease place the burden for taxes, if any taxes are due, on the hangar tenant? a. The Current Policy - the current policy is silent on the issue of who would be responsible for taxes, if any taxes are determined to be due. b. Survey - with the exception of one other city and the City of Paris, all the leases for all of the other cities surveyed would place the responsibility for payment of taxes, if any taxes are due, squarely on the tenant. The City Attorney is recommending that a clause be included in the lease to place the tax responsibility on the tenant. The City Council needs to determine whether or not future leases will place the responsibility for taxes on the tenant. 8. How much and what insurance should be required? The Cities form lease requires $250,000 personal injury, $500,000 event, $100,000 property damage coverage in each policy. The question is whether or not more extensive insurance coverage, including fire and casualty insurance on the actual hangar should be an obligation of the tenant. a. Current Policy - the current policy is silent on the entire issue of insurance. b. Survey - the amount of insurance required as determined in the survey varies widely among cities. However, it does appear that most of the other cities require either a broader range of insurance, or a higher amount of insurance coverage, or both. -6- c. Board Recommendation - the Board recommended the current requirement of general liability insurance be continued. However, the Board took the position that requiring fire or casualty insurance of the tenant to the benefit of the City as a co-insured, should not be a requirement of the lease. The Board further recommended that the City should be responsible for obtaining its own insurance for this particular purpose. Related to this issue is a letter from City Clerk, Mattie Cunningham, detailing her discussion with the City's TML and other insurance carriers on this issue (Exhibit 6). This letter was presented to the Airport Advisory Board at the time this issue was deliberated. The City Council needs to determine how extensive and how much insurance the tenant should be required to obtain as part of the new policy on private hangars. V. Structure of Airport Advisory Board. Exhibit 3 includes as a separate part of the questionnaire information sought from the respective cities regarding whether or not they have an Airport Advisory Board, and if so how that board is constituted. As you will note, most of the Boards have a membership of seven (7) members; however, two boards are eight (8) and nine (9) members respectively, two boards have five (5) members, and two boards have (6) members. The Airport Advisory Board of the City of Paris has varied in its number of inembers. The earliest resolution available in the City Legal Department files indicate that the board membership consisted of a Chairman and six members (seven (7) total) in 1970 (Resolution No. 1354); was reduced to five (5) members by Resolution No. 1538 sometime before 1974; was later expanded to six (6) members by Resolution No. 1646 in 1974; was reduced in size to five (5) members by Resolution No. 1722 in December of 1975; and was expanded to its current membership of seven (7) by Resolution No. 89-095 in August of 1989. The survey also indicates that some boards have requirements with regard to the members who serve on those boards. In addition, the board members themselves have widely varying background as reflected in Exhibit 3. Some members have had the emphasis on pilots and airport related individuals; some boards have a cross-section of the community; some require residency as a condition of inembership on the board, and one board requires a member of city council. The Paris Airport Advisory Board has recommended that the size ofthe board be expanded to eleven (11) members. It should be noted that one of the concerns expressed as a justification for expanding the board was the need to continue to have a quorum for board meetings. The most recent attendance record for the Airport Advisory Board is included in this agenda information package as Exhibit 7. It is worthy of noting that for the eleven (11) meetings held in calendar year 2001, the board had a quorum for each of those meetings. -7- The City Council needs to determine and provide guidance to the staffas to whether or not a resolution should be prepared expanding or changing the size or makeup of the Board VI. Expenditure, revenue, and fee issues. The City Council also directed that further input be received regarding fees charged by the City for T-Hangars located at the airport. Included with the Agenda Information Sheet related to this discussion is an Exhibit 8 on the grant history and monies expended at the airport related to grants; a current revenue and expense statement (Exhibit 9); and a table of 1999/2000 rates and charges for general aviation airports, including the City of Paris, for comparison purposes (Exhibit 10). This material was derived from a publication by the Texas Department of Transportation. Within those categories of rates and charges are rental rates for T-Hangars for comparison purposes. The currents rates charges at Cox Field Municipal Airport for T-Hangars is $49 per month for open hangars (1,344 square feet); $85 per month for closed hangars (1,344 square feet); and $110 per month for closed hangars 1,750 square feet in size and some 1,344 square feet in size. The Airport Advisory Board has recommended that the T-Hangar rentals be increased to $55 for open hangars, $95 for the closed 1,344 square feet, and $110 per month for the larger closed hangars. Based on this information, including the revenues, expenses, comparison table, and recommendation of the Board, the City Council needs to provide guidance to staff as to whether or not the rates for T-Hangars need to be adjusted so that a resolution can be returned increasing those rates. COST: See detailed discussion above regarding fees and expenditures. RECOMMENDED ACTION: See recommendations for action under each issue above. STAFF CONTACT: Thomas E. Haynes, Project Coordinator; and Larry W. Schenk, City Attorney SCHEDULE: Not applicable. COUNCII, MEETING: Discuss and provide guidance to staff members at City Council's August 13, 2001, regular Council meeting. Resolutions if necessary to implement changes will be returned in September for certain items and at the October Council meeting for other items. ADDITIONAL MATERIALS: See attached exhibits and other referenced material referred to the text of this Agenda Information Sheet. -8- EXHIBIT 1 SUMMARY OF CURRENT HANGAR LEASES - COX FIELD AIRPORT LESk7EE . INk7TRUMENT . . E~FECT OF . . TERM. . O~~~~~ ~~TAL . "O~~~ HA~GAR GEI?IERAfh _ FIRE ' INSTRUMENT ' ' I,]ABII,]TY MSIIRANCE I[~S[IRAt~iCE REQllIltED? _ RE1'Ufi€I3'A~~ ~ERM Loma Alto Corporation (Ferguson) and Russell Gifford (HANGAR D- T-Hangar) F. Andrew Fasken, Harley Wagnon, Lease Agreement 25 years NIA $1.00 6,550 sf $100,0001 No N/A and Loma Alto Corporarion 3I12179 8/1179 - 7/31/04 Construct $300,0001 Hangar $10,000 Assignment of Lease Partitioned hangar and 1/20/81 assigned a portion to Rich Brock (Fasken/Wagnon - north hanger; Brock - center hangar; Loma Alto - south hangar) Addendum Number Changed insurance $250,0001 No One requirements $500,0001 6I10191 $100,000 Assignment of Lease FaskenlWagnon assigned 4I16193 north hangar to Billy and Donna Winters Addendum Number Eatended lease term on 30 years 5 years $150lmonth Two north hanger; provided an 8/1179 - 7/31/09 8I1/09 - beg. 8/1/04 9I13193 option; provided for lease 7131/14 payments during option Contract of Sale Jesse L. Wintermute sold 7I20194 center hangar to Russell Gifford (neither assignment to Wintermute nor sale to Gifford was brought to the Council) Page 1 of 5 I,ESSEE iNSTRU141ENT ' EFPL•CT OF TERM' OPTION TOTAL AMOUN`I` FIANGAR GEAIEfiAL ~an~suax~ FIRE ~sv~~; Il~S~'RI~M~+ 1~T POSSiBLE Si~ INSuRANcE i~~UIRED? aEPuRCHAsE fiERM First Amended Lease In consideration of the 35 years 10 years 45 years $100/month $250,0001 No N/A Agreement lessees making repairs and 8/1179 - 7131/14 8I1I14 - beg. 8/1/04; $500,0001 1117196 renovarions (see file), 7131124 Option - $100,000 eatended primary term of greatest of lease; added a second oprion finv or 6¢Isf Assignment of Lease Winters assigned north 4I14197 hangar to Gifford Townes, Larry C. (HANGAR'I) Larry C. Townes Lease Agreement 55 years 15 years 70 years $300lmonth At least $250,0001 No 1/40, no pmt 519194 5/1194 - 4/30149 5I1149 - beg. 5/1134; 9,000, not $500,0001 thereafter 4I30164 Option - more than $100/000 fmv 18,000; actual 16,000 sf Addendum Number Described area to be leased One as 1.65 acres 12/12/94 Addendum Number Allows for expansion of Two hangar up to 25,000 sf 5/14/O1 Buster, Mark (HANGAR 11) Mark Buster Lease Agreement 35 years 10 years 45 years $250lmonth 4,356 sf $250,0001 No 1/25, no pmt 10/9/95 10/15I95 - 10I15/30 - beg. $500,0001 thereafter 10/14I30 10I14/40 10/15I20; $100,000 Option - frnv Lancaster, Edwin (HANGAR K) William T. Boothe Lease Agreement 35 years 10 years 45 years $100/month 2,000 sf $250,0001 No 1/25, no pmt 7I11194 8/1194 - 7131129 8I1129 - beg. 8I1/19; $500,0001 thereafter 7131139 Option - $100,000 fmv Page 2 of 5 I,ESSEE iNSTRU141ENT ' EFPL•CT OF TERM' OPTION TOTAL AMOUN`I` FIANGAR GEAIEfiAL ~an~suax~ FIRE ~sv~~; Il~S~'RI~M~+ 1~T POSSiBLE Si~ INSuRANcE i~~UIRED? aEPuRCUAsE fiERM Assignment of Lease Assigned to Ken Barber 918197 Assignment of Lease Assigned to Edwin 5/9/00 Lancaster Adams, Toby Reg (HANGAR AAA) Toby Rex Adams Lease Agreement 35 years 20 years 55 years $270lmonth 3,000 sf $250,0001 No 1/35, no pmt 319198 4/1198 - 3131133 4I1133 - beg. 4/1133; $500,0001 thereafter 3I31/53 2nd Option - $100,000 fmv Haggard, Bob and Sarah d.b.a Pterodactyl, LLC (UNNUMBERED HANGAR) Bob and Sarah Haggard, d.b.a. Lease Agreement 35 years 20 years (10 55 years $280lmonth 6,630 sf $250,0001 No 1/35, no pmt Pterodactyl, LLC 1I30198 2/1198 -1131133 each) beg. 2/1133; $500,0001 thereafter 2I1133 - 2nd Option - $100,000 1I31/53 fmv Clifford, Eric S. (HANGAR G) Eric S. Clifford Lease Agreement 25 years 10 years 35 years $100/month 2,000 sf $100,0001 No 1/25, no pmt 11/14/88 11/1188 - 11I1/13 - beg. $300,0001 thereafter 10/30I13 10I30123 11/1198; $10,000 Option - frnv Addendum Number Changed insurance $250,0001 No One requirements $500,0001 6I10191 $100,000 Clifford, Eric S. and Victor Abeles (HANGAR F) Eric S. Clifford and Victor Abeles Lease Agreement 35 years 10 years 45 years $100/month 4,800 sf $100,0001 No 1/25 during 10/14I85 9/1/85 - 8/31I20 9I1I20 - beg. 9I1/10; $300,0001 entire lease, 8I31/30 Option - $10,000 options fmv included Page 3 of 5 I,ESSEE iNSTRU141ENT ' EFPL•CT OF TERM' OPTION TOTAL AMOUN`I` FIANGAR GEAIEfiAL ~an~suax~ FIRE ~sv~~; Il~S~'RI~M~+ 1~T POSSiBLE Si~ INSuRANcE i~~UIRED? aEPuRCHAsE fiERM Corrected Lease Corrected the repurchase 1/25, no pmt Agreement anangement thereafter 2I13189 Addendum Number Changed insurance $250,0001 No One requirements $500,0001 6I10191 $100,000 Winters, Billy and Donna (HANGAR V) Billy and Donna Winters Lease Agreement 35 years 10 years $280lmonth 4,686 sf $250,0001 No 1/25, no pmt 10/9/95 10/15I95 - 10I15/30 - beg. $500,0001 thereafter LESSEES WOiJLD 10/14I30 10I14/40 10/15I20; $100,000 NOT ACCEPT THIS Option - ftnv LEASE First Amended Lease Eatended option; 35 years 20 years 55 years $280.00lmon REMOVED Agreement REMOVED 3/1196 - 2128131 3I1131- th 2I12196 REPURCHASE WORDING 2I28/51 Beginning 3I1131 Jimmy D. Smyers (HANGAR H) Jimmy D. Smyers Lease Agreement 10 years lst - 5 years 20 years $875lmonth ? $250,0001 Yes, with N/A 3I26/01 511101 - 4/30I11 511111- plus utilities $500,0001 extended 4I30/16 (increases $100,000 coverage, 2nd - 5 years annually AND for full 5I1I16 - with CPI-i) construc- insurable 4I30121 tion liab- value (Lessor's ility: oprions) $100,0001 $250,0001 $500,000 Glass, David (HANGAR E) Roger Allen Boxwell Lease Agreement 35 years $150lmonth $100,0001 No 1/25, no pmt 819182 8/1182 - 7131/17 beg. 8/1/07 $300,0001 thereafter $10,000 Page 4 of 5 I,ESSEE iNSTRU141ENT ' EFPL•CT OF TERM' OPTION TOTAL AMOUN`I` FIANGAR GEAIEfiAL ~an~suax~ FIRE ~sv~~; Il~S~'RI~M~+ 1~T POSSiBLE Si~ INSuRANcE i~~UIRED? aEPuRCUAsE fiERM Assignment of Lease Assigned to John Gann, III 4I13187 Addendum Number Changed insurance $250,0001 No One requirements $500,0001 6I10191 $100,000 Assignment of Lease Assigned to Carter Aircraft 319198 Service, Inc. Assignment of Lease Assigned to David Glass 11/9/98 Addendum Number In consideration of Lessee 45 years 10 years 55 years $150lmonth 5,600 sf Two increasing the size of the 8/1183 - 7131127 8I1127 - beg. 8/1/17 after 12/14/98 hangarby 25%, extended 8I1137 expansion term and gave option Richey, J. B. (FIXED BASE OPERATOR LEASE) J. B. Richey Fixed Base Operator 10 years 10 years 20 years 0 N/A $100,0001 No N/A Lease 1119198 - 1118108 11I9/08 - $300,0001 1119198 1118/18 $10,000 Page 5 of 5 EXHIBIT 2 RESOLUTION NO. 96-011 WHEREAS, the Airport Advisory Board, upon finding that there is considcrable difference in the sizes of hangars requested, the types and numbers of aircraft [o be opera[ed from such hangars, and the use of both hangars and hangared aireraft, recommended to the City Counci] that the lease policy a[ Cox Field Airport he flexible based upon size, use, and es[imated income to the Airport opera[ion with a minimum [wenty-five (25) year primary [erm, rental prepaid by constmction of the hangar, a ten year option at a fixed ren[al, and a ten year option based on either $.06 per square foot or fair market value a[ the [ime of the exercising of the option, whichever is greater, and a maximum forty-five (45) year prunary [erm, rental prepaid by cons[ruction of the hangar, with a fif[een (15) year option at a fixed rental and an additional fifteen (15) year op[ion wi[h ren[al based on ei[her $.06 pcr squaze foot or fair market value a[ the time of the exercising of the option, whichever is grearer, with the Airport Advisory Board having an opportunity to make recommendations concerning the terms of leases under consideration 6y the City Council of the City of Paris; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THC CITY OF PARIS, [hat a lease policy for Cox Field Airport be, and the same is hereby, established as follows: 1. That the minimum primary [erm of any lease shall be twenty-five (25) years, ren[al prepaid by conshucdon of the hangar, wi[h a[en (10) year option at a fixed rental and an additional [en (10) year op[ion wi[h renfal based on ei[her $.06 per square foot or fair market value at the time of the exercising of the option, whichever is grea[er; 2. That the maximum primary [erm of any lease shall be CoRy-five (45) years, rental prepaid by construction of the hangar, with a fifteen (15) year option xt a fixed rental and an additional fiReen (15) year op[ion with rcntal based on either $.06 per square foot or fair market value at the time of the exercising of the option, whichever is grea[er; 3. That the size of the hangar requested, the type and number of aircraft to be operated from such hangaz, the use of both the hangar and the hangared aircrafr, and tlie estunated income to the Airport operation shall be taken into consideration when de[ermining the lease [erms to be offered; and 4. That the Airport Advisory Board shall be given an opportunity to make recommendations to the City Council conceming the terms of leases under consideration by the City Council. PASSED AND ADOPTED this 12th day of February, 1996.^ Eric S. Clifford, Mayor ATTEST: Mattie Cunningham, City Clerk\ nrPRovEn n , roxM: , T. K. aynes, Citf Attomey EXHIBIT 3 SURVEY RESULTS - AIRPORT QUESTIONNAIRE Private Hangars Ground Graund I~ease Rental? Terms of Leases If Taxes Due, Ownership Revert iGnds of insuranee Required . Airport Make-up of Baard Available? Leases? (Primary) tu 6e Faid by tu City? When. Advisury Lessee? Board Size TEMPLE' Yes Yes Current rate unknown. 20years Yes Yes. Atexpiration FireandExtendedCoverage - Notless 9 REQUIREMENTS: When the hangars were of 20 year term. than 80% of the fair insurable value. 5 must be residents of first built several years city, 1 must be ago, the rate was $0.03 per resident of Belton sf per year, adjusted (chosen by Mayor of annually with the CPI Belton), and 3 must be county residents: ACTUAL: a doctor, 2 builders, an investor, a corporate pilot, a retired general aviationpilot, a business owner, and an insurance agent GiLLESFiE ~OUNTY Yes, but not for Yes $0.12619 per sf per year, 30 years Yes Yes. At eapiration Fire and Eatended Coverage; Public 6 ACTUAL: 3 pilots, 3 AIRPORT' private endeavors adjusted annually with the of Lease. Liability -$300,000 or higher if state non-pilots (FREDERiCKSBURG CPI law requirement changes ~ GEORGE1OWN' Yes Yes $0.10 per sf per year, 20years Yes Yes. At endof PublicLiability-$1,000,OOO;Aircraft 7 REQUIREMENTS: adjusted every 5 years oprion at no cost or Liability; Fire and Extended Coverage must be a resident of withthe CPI at end of primary -$80%of full replacementvalue the city's ETJ; term for then fair- ACTUAL: pilots, market-value. non-pilots, business- men, citizens BRADYi Yes, but not for Yes $0.10 per sf per month 10 years No. Hangars Yes. At the end of Public Liability; Hangar-keeper's 5 plus REQUIREMENTS: private endeavors. are owned by the primary term. Insurance. All insurance as sheriff one resident from All are built by their the EDC. recommended by TxDot. each county precinct EDC. and 2 residents of the city; ACTUAL: a retired Colonel and 3 businessmen from local industries Page 1 of 6 Private Hangars Available? Ground Leases? Graund I~ease Rental? Terms of Leases (Primary) If Taxes Due, tu 6e Faid by Lessee? Ownership Revert tu City? When. iGnds of insuranee Required . Airport Advisury Board Si~e Make-up of Baard ARANSAS COI1NTY Yes Yes $0.07 per sf per year, 20 years maximum Yes Y e s. A t Public Liability -$250,0001 6 REQUIREMENTS: AIlZPORT' increased every 5 yearsby termination of $1,000,0001$500,000 county residents; (ROCKPOR'I') $0.005 per sf per year lease, whether by PREFERENCE: 2 completion or local business default. leaders, 2 members with interest or history in aviation, 2 members with no interest or history in aviation McKIlNNEY' Yes Yes WAITING ON AIR- Negoriable Yes Yes All insurance required by law, 7 ACTUAL: mostly PORT MANAGER TO including but not limited to, workers citizens, some are RETIIRN CALL compensarion - $500,0001$500,0001 pilots $500,000; insurance covering the specified activities; and premises insurance (replacement cost with no depreciation) against fire, lightning, wind, hail, flood (if in flood zone), eaplosion, riot, smoke, and vandalism. Page 2 of 6 Private Hangars Available? Ground Leases? Graund I~ease Rental? Terms of Leases (Primary) If Taxes Due, tu 6e Faid by Lessee? Ownership Revert tu City? When. iGnds of insuranee Required . Airport Advisury Board Si~e Make-up of Baard ADDiSON' Yes Yes WAITING ON AIR- Negotiable based on Yes Yes. At end of LosslDamage to improvements by fire, N/A The town elected to PORT MANAGER TO value of the leaseterm. lightning, and other risks, sprinkler, dissolve its Airport RETIIRNALL improvements vandalismandmaliciousmischief-inan Advisory Board amount not less than 100% of the actual because it put another replacement value; Commercial General tier between the Liability - $2,000,000 per airport management occurrencel$4,000,000 aggregate (must a n d t h e t o w n include contractual liability); Workers government. Compensation - statutory limits; Employers Liability - not less than $1,000,000; BoilerlPressure Vessel Insurance on steam boilers - $500,000 (if applicable); Automobile Liability (owned, non-owned, and hued car coverage) - $1,000,000 CSL; Hangar Keeper's Liability - $1,000,000 per occurrence if engaged in maintenance, repau, or servicing aircraft belonging to third-party or any operation in which tenant has care, custody, or control of aircraft belonging to third-party; All- Risks Builder's Risk Completed Value Policy - during period of construction; Aircraft Liability - in minimum limits required by regulatory agencies, but not less than $1,000,000 each occurrence Page 3 of 6 Private Hangars Ground Graund I~ease Rental? Terms of Leases If Taxes Due, Ownership Revert iGnds of insuranee Required . Airport Make-up of Baard Available? Leases? (Primary) tu 6e Faid by tu City? When. Advisury Lessee? Board Size TEXARKANA' Yes Yes Averages to be 20,000 Yes Yes Yes. Immediately Loss/Damage to improvements - fire 8 AIRPORT square feet at $0.15 per upon completion of and extended coverage - in an amount SEE AUTHORITY - The square foot per year, improvements. not less than 80% of the fair insurable NEXT Authority owns the increased every 5 years value; General Liability -$300,000 COLUMN airport and governs witlt tlte CPI bodily injury; $300,000 property t h e a i r p o r t damage; Workers Compensation - in operations. amounts as may be required; Members are: 2 Comprehensive Automobile Liability - attorneys, 3 small in amounts as may be requued; Aucraft business owners, a Liability - in amounts as may be h o u s e w i f e, a n required ; All-Risks Builder's Risk insurance specialist, Insurance - during period of construction and 2 retirees. for not less than 80% of the fair insurance value CLEBURNE3 AWAITING A RESPONSE BiG SPRING' Yes Yes If there is an existing Not more than 20 No Yes. At end of Hangar-keeper's Insurance; Liability. 7 REQUIREMENTS: concrete pad -$84.00 per years primary term. The Cityprovides structural insurance must reside within acre per month; if there is under its policy and passes the cost city; ACTUAL: 2 exisring asphalt -$42.00 along to the tenant. active pilots, 3 per acre per month; if the businessmen, and 2 land is raw -$21.00 per citizens acre per month; all adjusted every 5 years with the CPI TERRELL3 Yes Yes 10% of the appraised 25 years Yes Yes. At end of 1. Real properry owned by the City is 8 ACTUAL: 5 pilots, 3 value of the land per year, lease term. insured under its policy; Lessor m e m b e r s n o t adjusted every 5 years provides insurance for any personal affiliated with airport with the CPI properry; Liability; Business liability in any way insurance; Bond with City listed as beneficiary in the event of damage to the Airport Page 4 of 6 Private Hangars Ground Graund I~ease Rental? Terms of Leases If Taxes Due, Ownership Revert iGnds of insuranee Required . Airport Make-up of Baard Available? Leases? (Primary) tu 6e Faid by tu City? When. Advisury Lessee? Board Size KERRVILLE' Yes Yes Based on property 20 years; 25 years if Yes Y e s. A t During construction, Contractor's 5 ACTUAL: pilots and appraisal. hangarfinanced termination ar Insurance; Commercial General business-men linked completion of lease. Liability -$1,000,000; Automobile in some way to the Liability - not less than $1,000,000; airport Properry and Casualty Eatended Coverage - at least 90% of replacement value; Hangar-keepers' liability - $1,000,000 NA~~GDOCHLS' Yes Yes $0.1624 per sf per year, 20 years Yes City has right-of- G e n e r a 1 L i a b i 1 i t y - 5 PREFERENCE: 3 adjusted annually with the first-refusal upon $100,0001$300,0001$300,000 pilots, 2 non-pilots CPI sale, default, or determinarionnotto enter into a new lease. ANGELINA COUNTY Yes Yes $0.15 per sf per year 40 years Yes Y e s. A t WAITING TO RECENE THE 7 ACTUAL: abouthalf AIRPORf', termination of LEASE TO COMPLETE THIS are pilots with the OLUFKIN) lease. SECTION. remainder being city or county residents CORSICANA2 Yes, but there has Yes Based on the value of the 20 to 30 years Yes Y e s . A t G e n e r a 1 L i a b i 1 i t y - 7 ACTUAL: a doctor, been no new hangar. termination of $300,0001$500,0001$200,000 the Chancellor of the construction for 20 lease, whether by local college, a flight years completion of the i n s t r u c t o r, 2 terms of otherwise. commercial airline pilots, 2 others GAINE~VILLLE 2 Yes Yes $0.12 per sf per year, 20 to 30 years for Yes Yes. At the end of No insurance is required at this time. 7 REQUIREMENTS: adjusted every 5 years private hangars; 30 the primary lease The Airport Manager advised that he must be a resident of with the CPI to 40 years for term. and the City Attorney are looking into t h e c o u n t y; businesses this issue to begin establishing ACTUAL: some requirements. have hangars, some do not B1~OWNWOOI2 Yes No Construction of hangar in 20 years No, but they are Yes. Immediately Fire and Casualty Insurance - in an 7 REQUIREMENTS: lieu of ground lease researching to upon completion of amount equal to fair market value of 1 must be member of payments do in the future. construcrion. the hangar, payable to the City; city council Liability - $1,000,000 per occurrence Page 5 of 6 Private Hangars Available? Ground Leases? Graund I~ease Rental? Terms of Leases (Primary) If Taxes Due, tu 6e Faid by Lessee? Ownership Revert tu City? When. iGnds of insuranee Required . Airport Advisury Board Size Make-up of Baard PARiS Yes Yes Not addressed 25 - 45 years, Not addressed During primary term Liability -$250,0001$500,0001 7 A C T U A L: 4 depending on size of of lease, City is $100,000 members who own hangar required to pay a planes and rent or percentage of the own hangars (1 of value of the hangar which is also the u p o n 1 e a s e FBO), 1 with strong termination interest in aviahon, 2 general citizens RECOMMENDED BY Yes ~~s W 12 per sf ~ear, ~ears if less than Chose not to N o No insurance 11 AI"ORT adjusted every ~years 5,000 sf, 30 years it m a k e a recommendation ADViSORY BOARD wikh the CPI 5,001 sf t~ 20~000 recommendatio made sf, n~~otiable if over n 20,000 sf ' Recommended by TxDot z Recommended by Airport Advisory Board 3 Recommended by both TxDot and Airport Advisory Board Page 6 of 6 EXHIBIT 4 Discussion with Airport Advisory Board, April 17, 2001 DISCUSS POLICY CONSIDERATIONS AND PROVISIONS OF LEASE AGREEMENTS FOR NEW PRIVATE HANGARS. 1. Term Length. Current policy. 2. Cost versus amortization. Length of options 4. Option fees - amount and adjustment for inflation. II. Should plans for the hangar go through the City's typical building plan review, thereby requiring a building permit and applicable fees? III. Should special consideration be given in hangar leases which are used for business or economic development purposes in contrast to purely personal use? What should those considerations be? 2. Our lease does not prohibit living quarters per se (although the lease does say it is for aviation purposes only), and people live in the hangars. Should future leases allow this? IV. Specific begin and end date for construction. Should it be required? 2. How long? V. Should the lease provide for ground lease payments? Policy at other airports. 2. TxDot input. If so, how much? VI. Should the lease place the burden for taxes, if any, on the hangar tenant? Current lease is silent on taxes. 2. No taxes are paid. Policy at other airports. VII. How much insurance should be required? Insurance currently required. 2. Practice at other airports. EXHIBIT 5 Recommendations of Airport Advisory Board DISCUSS POLICY CONSIDERATIONS AND PROVISIONS OF LEASE AGREEMENTS FOR NEW PRIVATE HANGARS. 1. Term Length. Size versus amortization. The Advisory Board recommended a policy for term lengths using a sliding scale based on the size of the hangar being constructed by the tenant. The Board also recommended there be minimum standards set for the construction of airport hangars so all hangars will meet minimum requirements, such as gage of inetal insulation, air conditioning, heating, etc. The Board recommended this sliding scale based on size in lieu of a sliding scale based on cost versus amortization because they felt the size of the hangar more accurately reflected long-term usability of the hangar, whereas cost could reflect the expense of adding certain items to the structure itself which would not have long-term applicability. Subsequently, the Board made a specific recommendation that leases for hangars up to 5,000 square feet in size would be for a twenty-five (25) year term; leases for hangars sized larger than 5,000 square feet but no larger than 20,000 square feet would be for a thirty (30) year term; and all hangars sized in excess of 20,000 square feet would be for a term negotiated between the hangar owner and the City. 2. Options The Board recommended there be no options specified in the lease agreement and the term be for the original term only. Right of first refusal after end of term Thereafter, the Board recommended a process similar to that process used for Hangar H, whereby the subsequent rental of the hangar after the City took it over following expiration of the initial term would be based on a competitive bidding process for a rate for use of the hangar, and the tenant who had originally built the hangar would then have the opportunity to exercise, within thirty (30) days, a right-of-first-refusal to rent the hangar for whatever period of time the City desired to rent it out at the rental rate which was bid in the competitive bidding process. Again, no options would be provided in the contract. Page 1 of 3 II. Should plans for the hangar go through the City's typical building plan review, thereby requiring a building permit and applicable fees? The Board recommends all hangars go through the City's typical building plan review, including the requirement for building permits and fees. However, the Board also recommended standards for hangars be developed if they are not already set out in the building code. III. Should special consideration be given in hangar leases which are used for business or economic development purposes in contrast to purely personal use? What should those considerations be? The policy being developed for private hangars should apply equally to business purpose hangars and personal use hangars. Economic incentives for business-use hangars are available from and should be exclusively derived from the Paris Economic Development Corporation. 2. Our lease does not prohibit living quarters per se (although the lease does say it is for aviation purposes only), and people live in the hangars. Should future leases allow this? The Advisory Board recommended future leases provide tenants cannot live in the hangar or have full living quarters in the hangar. The intent is to allow some facilities which otherwise would be included in living quarters, such as a bar, sink, bathroom facilities, and even a temporary cot. The point was made that sometimes these hangars are used for parties and that should not be prohibited. However, the Board was unanimous in its consensus that future leases should not permit the tenant to live in the hangar. IV. Specific begin and end date for construction. Should it be required? Yes. 2. How long? The Board recommended eighteen (18) months from signing of the lease to complete construction. Page 2 of 3 V. Should the lease provide for ground lease payments? The Board recommended for all new lease agreements a ground lease payment by the tenant of $0.12 per square foot of ground per year, adjusted every five (5) years by an amount equal to the Consumer Price Index for the previous five (5) years. VI. Should the lease place the burden for taxes, if any, on the hangar tenant? Current lease is silent on taxes. The Board reviewed the language which the City Attorney provided which was derived from four (4) separate contracts for four (4) other airports. The purpose of these clauses is to make sure if any taxes are ever due and payable on the property or structure of the private hangars, then the responsibility for those taxes would be the tenant's alone, and not the City. The Board understood it was the City Attorney's intent to recommend such language to the City Council, and therefore wanted the record to reflect it neither made a recommendation for or against such inclusion. 2. No taxes are paid. VII. How much insurance should be required? The Board debated the necessity for and amount of insurance to be required on such hangars. The Board recommended to continue the general liability requirement. The Board considered the issue of requiring occupants of private hangars to have full coverage fire and casualty insurance on the hangar, equal to the value of the hangar. After further discussion, the Board recommended that the lease not require the occupant to have fire and casualty insurance at the expense of the occupant; rather, the Board concluded that the City should pay the cost of such insurance on the hangar if the City desired to have insurance coverage to protect the City's interest in the hangar. Page 3 of 3 EXHIBIT 6 MEMORANDUM TO: LARRY SCHENK, CITY ATTORNEY FROM: MATTIE CUNNINGHAM, CITY CLERKTV~, SUBJECT: INSURANCE - PRIVATE HANGARS AT COX FIELD DATE: JULY 12, 2001 In regard to your question, does the City of Paris carry personal property insurance coverage on private hangars located at Cox Field Airport, the City of Paris has never carried this type coverage for private hangars located on the Airpart property. The city does have coverage for city owned hangars. I talked with Stephanie Harvey the City's Insurance Underwriter with Texas Municipal League and Ms. Harvey advised, after reviewing a copy of one of the lease agreements with their legal department, that the City of Paris does have a vested interest in the leased hangars at Cox Field. She also advised that insurance coverage for the leased hangars could be added to the city's insurance schedule at the current rate of $.086 per one hundred dollars, with a deductible of $2,500.00 per occurrence. Ms. Harvey also suggest the lease agreements be revised with the Lessee's furnishing this coverage for their hangars with the City of Paris being shown as an additional insured. Another item Ms. Harvey pointed out, after reviewing the lease agreement, was there were no provisions where the Lessee would be required to rebuild the hangar in case of it being damaged or destroyed. Ms. Harvey suggested placing this requirement in the lease agreements in order to protect the City's interest. If additional information is needed, please let me know. EXHIBIT 7 AIRPORT ADVISORY BOARD ATTENDANCE LIST MEETING I 1st I 2nd I 3rd I4th I 5th 6th I 7th DATE Director Director Director Director Director Director Director 02105/07 attended attended aftended attended attended attended QUORUM 02121107 attended aftended aftended attended attended attended aftended QUORUM 03127107 attended attended attended attended attended attended QUORUM 04/77/01 aftended aftended attended attended aftended artended QUORUM 05108101 attended attended attended attended attended SPECIAL QUORUM 05115/01 attended attended attended attended attended QUORUM 05129101 aftended aftended attended attended attended SPECIAL QUORUM 06119107 attended aftended attended attended aftended QUORUM 06128101 attended aftended aftended aftended SPECIAL QUORUM 07117/01 attended attended attended attended aftended QUORUM AIRPORT ADVISORY BOARD ATTENDANCE LIST MEETING I 7st I2nd 3rd I4th 5th 6th 7th DATE Director Director Director Director Director Director Director SPECIAL QUORUM 05/15101 *absent* •absenY QUORUM 05129101 *absent* *absent* SPECIAL QUORUM 06/19/01 *absent* *absent* QUORUM 06128101 *absent* *absent* `absent* SPECIAL QUORUM 07/17101 *absent* *absent" QUORUM EXHIBIT 8 AIRPORT IMPROVEMENTS GRANTS 1. Project No. 9-41-149-5701 (Civil Aeronautics Administration) - Construction of new terminal building. Amount: $113,706.99 Total Cost; $56,505.86 Federal Funds; $57,201.13 Matching Funds (1957) 2. Project No. A-48-0169-01 (US-FAA) - Develop Master Plan. Amount: $5,653.00 Federal Funds (1957) 3. Project No. 8-48-0169-02 (US-FAA) - Acquire land; extend runway 17-35 by 1,500 feet; install medium intensity runway lights on extended runway 17-35; install rotating beacon, segmented circle, and lighted wind cone; and perform pavement marking incidental to construction. Amount: $380,302.67 Total Cost; $285,227.00 Federal Funds; $41,075.67 State funds; $54,000.00 Matching Funds (1975) 4. TAC Project No. 741-4-25183 (also 751-5-26012) - Acquire south clear zone easements; extend Runway 17/35 from 4,500' to 6,000; install lighting; construct T-hangar and taxi- ways. Amount: $50,000.00 State Funding (1975) 5. Project No. 6-48-0169-03 (DOT); Contract No. DOT FA 76 SW-8001 - Phase One - Overlay and mark old portion of Runway 17/35; and Project No. 6-48-0169-04 (DOT); Contract No. DOT FA 77 SW-8182 - Phase Two - Overlay and mark new extension of Runway 17/3 5; and construct T-hangar taxiway. Amount: Phase One -$154,659.00 Federal Funding; Phase Two -$145,884.00 Federal Funding (1977) 6. TAC Project No. 785-14 - Pave multiple T-hangar apron. Amount: $12,500.00 State Funding (1978) 7. TAC Project No. 836-20 - Construct fuel storage and access ramp. Amount: $115,000.00 State Funding (1983) 1 8. TAC Project No. 866-24 - Seal cracks and joints in Runways 13/31, 3/21, taxiway, and apron; re-stripe Runways 13/31, 3/21, and 17/3 5; replace rotating beacon; and install taxiway guidance signs. Amount: $130,000.00 State Funding (1988) 9. Project No. 3-48-0169-01-90 (US-FAA) - Master Plan Update. Amount: $40,500.00 Federal Funding; $4,500.00 Matching Funds (1990) 10. Project No. 91/43-7-4 (Texas Department of Aviation) - Construction of aircraft hangars and associated appurtenances. Amount: $120,600.00 State Funds; $13,400.00 Matching Funds (1991) 11. Project No. 3-48-0169-02-92 (US-FAA) - see also TDA Project No. 92/29-8-1 (Texas Department of Aviation) - Extend Taxiway A; grading and drainage improvements for Runway 17/35, Taxiways A and B; construct helipad and helipad access road; overlay entrance road; and install perimeter fencing. Amount: $458,889.00 Total Cost; $413,000.00 Federal Funds; $22,944.00 State Funds; $22,944.00 Matching Funds (1992) 12. TxDOT Project No. 94-43-103 - Install lighted guidance signs on Runway 17/35. Amount: $92,136.00 Total cost; $82,922.40 State Funds; $9,213.60 Matching Funds (1994) 13. TxDOT Contract No. 6XXFA032; TxDOT Project No. AP PARIS 4; TxDOT CSJ No. 9601PARIS (Texas Department of Transportation) - Reconstruct and overlay hangar access taxiway; install segmented circle; construct drainage improvements; construct terminal building; install erosion/sedimentation controls; and associated appurtenances. Amount: $750,000.00 Total Cost ($480,000.00 for construction of terminal building [50% funding available]; $270,000.00 for other items [90% funding available]); $483,000.00 State Funds; $267,000.00 Matching Funds (1995) 14. TxDOT CSJ No. AMOIPARIS (Texas Department of Transportation) - Crack repair; seal coats; edge seals; herbicide application; striping; sweeping; and mowing. Amount: $15,422.00 Total Cost; $7,711.00 State Funds; $7,711.00 Matching Funds (1996) 2 15. TxDOT Contract No. 7XXFA020; TxDOT Project No. A PARIS 5; TxDOT CSJ No. 9701PARIS (Texas Department of Transportation) - Reconstruct and rehabilitate Runway 17-35; stripe and mark Runway 17-35; rehabilitate Taxiway A; rehabilitate Taxiway B; replace medium intensity runway lights for Runway 17-35; seal PCC joints and mark apron; install prevision approach path indicator for Runway 17; install aircraft tiedowns; drainage improvements; prepare Airport Layout Plan and Exhibit "A"; install erosion/sedimentation controls and associated appurtenances. Amount: $2,308,000.00 Total Cost; $2,308,000.00 Eligible for StateFunding; $230,800.00 Matching Funds (1996) 3 EXHIBIT 9 COX FIELD AIRPORT INCOME V. EXPENSES Income October 1, 1998 - Septemb er 30, 1999 $41,484.24 Sources of Income: Land Leases $2,893.00 Terminal Lease $2,217.33 T-Hangar Rentals $27,808.00 Fuel Flowage Fees $8,565.91 Income October 1, 1999 - Septemb er 30, 2000 $44,312.76 Sources of Income: Land Leases $240.00 Terminal Lease $4,017.00 T-Hangar Rentals $31,184.00 Fuel Flowage Fees $8,871.76 Expenses $108,274.17 ($141, 251. 00) (budgeted) Expenses $160, 870.06 ($164, 465. 00) (budgeted) EXHIBIT 10 1999/2000 Rates and Charges General Aviation Airports in Texas Cay,CowiY AkVW Fmil .ddrm M,pa, Amw~ RaW Rtla T.H.gl TieOowdRury PukegLal(fpa) NmAVUdonAOa~ (hvlyy/ p" N.me dm FlipJ,t (fpaN.dPaY') ' SmfMed/I{ F. PBO%of Ow.pefm (~7 OP.W. hnd/o9 iodlugeMyya ova 1 iouvh Wd'm`Fm IndWUI lApiavYue pror ~ 11ny / M1faitB fp.6 SprAae 11~^wnwoadl Ormmwwd N/A I300 ]O,WO WA SII01N/A/f110 WA/IIO WA 1LA WA MA WA 11rwn Co. & gaul ' 11wm Bwnn mWimU@lb~ 110.34 MA WA M0O/f200/WA MA MA MA WA MA IIO Mmiryd CWdoMill. GddoMiN N!A 150 10,000 MA 51601WA/WA SISlWA Wp TYA MA MA MA Miniopd Ca1dvA! CuA.dl MA 40.9 10,000 MA f100lWA/MA WA/fi]7 NU MA MA MA MA Bwiam Co. F4nitpd GNamCo. GliwnCO. WA WA 10,000 WA =7513100/WA f3lf33 MA WA WA ' IOOK WA Port Uvao Cfi.obt++ M+h. *AM.dumbvs li 101000 x07/WA/S73pada. S1II315130/5300 MA/MS MA MA MA N!A WA CountY Wmie .LCw Ciwo Ciwo MA MA 10,000. MA / WA /f333 MA WA WA WA WA WA MA EWmdCa. AW~ie~al . Clovn CbwFidd dova3@flmiuia 30L9 100,000 f.lf f y27pI3L35 $195 /337311773 SS/f33-f73 MA TUA MA IOfi MA CdIUG. A'vpuk• N/A 81 10,000 MA f173/WA/f3U0 yi/p0 pVA WA WA WA MA DdW Canm&e ComoChe WA IU 10,000 WA fE3390/WA/WA MA MA WA MA WA MA CaotyClY . . 6.dl Fovd WA 33 MA MA MA WA MA N/A MA WA MA ca.ay nw+o GWao mv4dewitlrsti 75 1,000 MA S50 1 530/WA $1-#1 S70460 WA WA MA WA WA A1~niapal ~w ~ ~ 1a+@F'LAS1L 1'7g 'W.WO S446/f0.lO1WA S(A.f165fWA/WA $7d(0/T30 WA MA WA MA A03 1 D°"° D.. Ch W&.QmA. 131.7 IO,OOD WAJWA/i07 3LO5 pQ.qd NG MA WA !UA MA WA 1999/2000 Rates and Charges General Aviation Air orts in Texas cayrcwur k,v«d ~a.ad.. n'upon ~.w nm.iww T.xnPn r nM*'x.m r.~t;g LA (sv=) N. n.ini. aoa. m.s.f. eud N. wm Flidu (S~w.apn) smrMMiL, Fm aeoxor na.., r= (~aa7 Opcriaw IW1o9iodlu8<hnyn ove ! mnah Is~d'ngFeu foAmliJ /AgiaYme Crou vwl My / ldmh IqA SpQAae Gl.~nal 0W+frta NlA 700 10,000 3.12lWA/5.13 565/WAIWA NIA MA WA MA WA WA Crtegg AUnicipd " Gmala G.I. NU ~ 18 WA WA f75/Y73/WA WA WA WA WA MA MA Mmi4,l GmMuy/ QiaryFidd WA 74 10,000 S.GS•.13Jf1.73/WA S153 /t300/5700 SI1 330 WA MA WA MA WA Hoad Gny+m Onyim MA 1400 7Q000 5.06•.U/f1.e8•SS,00/ SI50/S17515770 f3lZ70 WA MA WA/Sl3pamnd MA . 5.04ebms cmdY C^aY Al4,37.3&39kS1.47 hb IO.OOOpI G.Y. C-ty Codar Mille flpw@.d.mn 43 Ia,aW MA MA WA MA MA MA WA WA GruvaI Orvw gM1iE@pumnel 169 NA 510lWA/WA f43/WA/WA MA . MA WA WA MA MA H+nsford Municpl Hukdl Nukdl WA 80 MA WA f601WA/WA WA MA WA WA MA MA MwiryJ lfeme1 Hnme hnme(dptaM1elnat WA MA S.O]!WA/ MA 160•f175/f3007 WA/.q33 MA WA WA MA NJA Aabaluo Mwicpd ,U35 HondeJMed'mi Haodo HmdaayQvuil SOlpa 10,000 i0131WA/MA MA !UA/f10 WA MA f.10If1.00 WA fA5 Nau+mMuri. WdmeA'v WA 103 10,000+ WA/WA/WA S3301S770fW0 LS.ODlWA MA WA WA MA WA Prtk 1nm/Pmn hun WA 76 10,000 WA WA WA MA MA FLniryJ InpmdlSm TP -pn4@eo.oom 1I4 lO,OW [OS/NA/NA WA MA MA WA WA WA MA Pnridd Md.uipbell ' , 1.d~hwdJ~ 7K4abaa WA WA lO,OW MA S30/f30!!LA MA WA WA MA WA MA Mmicpl 1999/2000 Rates and Charges General Aviation Airports in Texas Crty/Cwnry AirynM1 Fmil~ddru+ Aiqwl Aonwl RaEalRdn T-Hmpn TwDaMP~ PutegLal(fpe) NmAViMimA~ CL'ryafar Rr{ N.me um Fligta (7pnq.QpaN) SmlMad/I.e Fw FBO% af ftw+gefm _ (.ae) Opaatiw Iv0o111004rgelm`us ava / mamh IrWn6Fee Indu4id lApiwhuro O~ nippt 0.y ~ l.7m1h fql SpvAae M.tPlewu hlawt hauwry~'~uucaom 101 10,000 N/A/WA/I.OS WA WA WA WA WA N/A WA Plmemt ALni~.l NauBnwkle Ncw dpM1illip@eucne 993 30,000 Alo/f6.0U/f1.80 5160/WAlWA S].OO/f7o.00 WA WA 3.I01I35 I% t07 Bnue44 A1mi6pd Neatm Nwrtm MA 100 10,000 MA f75131003177 WA WA MA WA WA WA MioiWd U-g~g Omg dnoa(dao.amge UO 30,000 WA/SIOJI63 S130lWA/WA SI0f510 WA MA WA WA $.07 Coway CavLLY M. Pbm'vm Pdm'vne ga6ioMn@tWhai 300 10,000 f33pamvlM1lWA/WA tJ/A f1/530 MA WA MA MA IOIIOOOt A4nkipd t02V7m Pw' CoKFidd MA I337 10,000 WA/3l0l51.80 H91 S95 1 II00 MA MA WA WA/SB.tlaop MA f.03 S3.41 pwve Pamll/Frio McKmlry WA 70 I0,000 WA/WAlSlP,000yr 5331WA/WA WA iUA f1.00lWA WA MA WA Pndmd Pinduk N/A ' IRS IO,OW- N/A f10.001WA/WA WA WA WA WA MA WA M.xyd Poi11q,Ran,ft FlyngMd, mdm(ddmoledu 293 I,OOD MA fl001S150/WA f10/S70 WA WA WA . WA MA fl~ Pia~ MA 91 10,000 S.M/WA/WA 580/5100/1175 MA WA WA WA MA WA ASniepai Port~! Mu4og crtypMUmu@ae MA WA WA WA 5445lf33434 WA MA MA WA WA Nuav Be& tiuqidna PaN~ad/ Him[1 WA S WA WA S931WA/WA WA/f13 WA' WA MA WA WA Sn PMrido Rd~gioCouLLy RaataFidd MA Il! 10,000 MA MA WA WA MA MA WA M 1999/2000 Rates and Charges Reliever Airports in Texas CrtylCwntY AWaM1 Fm~il.ddea .1iWpM Amiul R~IRYp T-Haeyn 15eDoxdRuW Pukngld(Spv) NmAvitlimA~ p Fud N~me um FlisM (SpaNdPafT) Sm/Madllg Fm FE0liaf O.pfae Ucn) Opaniw hnd/~adlugehmigan mv / mmih Lmdi" Pw LWiWUI lAyiwkurc G. nwt DaY / Mm6 Sp1 fpvAas M'vgm M'v~gLm airyan@o.vlnp}m 300 30,000+ S.IO/f10.5015136 516313163/5150 f1lf10 WA WA MA WA f17,30 Mmiw.l tz.m ' Fm"in Pas CPI Houmontl Bwumad WA 393 70,000 103410lMAIH/A SI031S160./WA 561f44 WA MA t033.10/WA MA i03 kffawn Mwiap.l 1~t D~ D~vputmm 700 70AW+ 03415/WA/57.50-f4.00 f63-T760lf191-f190 f3lbPf30 MA WA WA/SIL33 10% 1%6% Dnam,. Mmi'ryal /570034W FmWaU✓ MeIdw dp~ed@d.fal- 743 10,000F f.194111S6-40.5I1.301 ¢701T270lN7A f3-f67/f100. S.BSSlpr WA. MA WA {.07•III Tuna LtlemYimd wMhicm 5137 57,300 IOOOm C+mrgRwn OmMdam WA 500 50,000+ .LIO/WA/f1.17 SRRSfM11/MA f1/S30 WA MA WA/A7 WA i10 AUnicpl GmdRaine Gmd booaOd.gW. 167 70,000+ f.10/f1.77•I3.00/II.Oi 31331 f180/WA t3 /330 WA WA MA MA i70 Pnirie pnirintcw $1.71 Mmicqd UPonelHu,'u Wo4 yllm-w,W 700 10,000. i01/WAlWA . MA WA/t70 WA WA MA WA MA MwiaPd pplttx.W M<Kenry/ AfcKinry kuroe@vdcumry. 766 100.406t 5.11/WA/WA 5175/b971f420 t37f60 WA WA WA WA 3.09 CoOo. Mmi*d laaaarg AduWee; Mequie qodGey@damqui 300 SO,OW+ t14/WA/5.11 f1707f1771S330 S7375 WA WA MA WA WA D.U. Mem le.LCtr Mmlgmsy Mu¢gamy ma~ 1,166 30,000 5.10/WA/WA SI30/S235/WA $31330 N7A WA $IIOIWA WA f.01 Caety CaK9 , SoMum~ SwALroo, j,dpiphly@mlyryi 1,336 50,000+ $.1015.30lWA f133.32751WA 57If70 ~ MA WA PA1VlBd 1% 1% bmWal WA whohuy Ty1aG-ty TylaCm2y N/A MA WA WAIWA/S233130mo MA MA MA MA MA MA MA W.m 1 1 TSTC 1'NNSO@hleek 1,600 SO.OODa f.10/17.11/SIJO MA WA S.Ilpr MA ' WA/A.B9 WA L10 10006 1999/2000 Rates and Charges Medium and Large Hub Airports in Texas cay,c~ty npln ~wi ap~ Fudrl~p rt,wiww ra,MdnrdsP.atsrew.dvw nl rtm,icw T-xmq-(svQ rbm..o L-ai rUkatd NweA~ Name E~rylmmiaw um Fm (Spaq.flW+Y*) awNa/RelawWfkMadfi^W/ matlh m~h) ro4fae FoOa (fPQ) A~ Indfa9'is/Wgehanyr Advv~iainguguxY.g~w mioimw/ mll/med/lg orvtigll/ IODOU drylmatl6 Ind7At M pm modh Abilmc/ Abiim< WA 1.700 5.0673 S.045.S.II5/DVA!=.60 SI5.37/WA/WA/304i SI000110% SI101 5270/5330 MA .fif- 541WA WA T.yla Regimd xu NwilWl AmuiOo 434,I10 5,300 3L0333 II31 310.4171 f1.10 SI8.7318%I874/10% WA/10% WA f3/WA SAS 54-f6! f1.351f3.70 Para EmaoYimJ MA Au+n/Tmis eaptmn 7,192,199 4,300 S10 5171f61.171WA S64.371%/%/S11,OWyr WA/IOX MA WAlSI00 SI.U- SWI& WA mKanWmd $3.70 MA Bm,mrvilk/ SwahPdre 75,000 1,900 $A6 S,I0I3.73/L% f1601I0%/10%123% T3,5W/10% WA MA T.93- WA f.101SI00 C. bI.ed LN Immivul Ddlu/0.11u DdWtcve 3,409,930 1a73 L04 S.20 K3.08•53.731 S231 f9.701%/%!SI&7311a13% 534000110% MA MA L15- SS-f7/ T3.73•533& Fdd 137 MA [J/A EIPw EIPaw 1,6W.690 7.000 106 5.]0.131/SI.3015]OOmo 531.30110~1'i%/1~ ISX fB,I]JJ]/ S1004IIOIS2WI 316A0/S30 190 SI.50. TJ.fO•IlQ' Inlaoriwl ]OX $200 56.70f MA f19]- suuo OrtgCanty Cm{g 70,000 1,300 5.01 f.iO/WAlN/A f1010/1VAlN/A f100l9.3% SI771 530013170• WA i30 f3/WA S.OSlWA C~Y t700 Nrtlngm Vdiry 470,000 7,300 101 1061WA/2.11-SJI 539.67111XI541II%/30% WAlIOIi MA WA SbY f4•SS/ WA/SJO hAaRAMW 5.711 MA 1Cill. ICiilam 90.O29 702 S055 I511 f7.201fI.03 511.731 f5,318.14yx/f7S0/25% t1,886.17 f99.671SI72/WA SS-f7/ S37- f1.70MlA MA A4nw,d Lrtwe 52I13 116 I.ado laIalo 76,000 1,800 1013 1I81S.I31f1.N .SIS/SI3.18/SSJ9170% $I,770/WA WA MA U0 WA itt-i40/ h0as4md WA Lubbndk Wbha* 60D.000 7,000 S04 f.1102 lS1611807341.10 SI7.1]IWA/WAMlA 10% WA WA 165- f447931 LIO%/% lttl3 WA