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CALTRANS AIRPORT LOAN
City Council
November 14, 2023
General Services Department
RiversideCA.gov
2 AIRPORT ENTERPRISE FUND
• As an enterprise fund, the Airport receives no
contributions from the City general fund.
• The Airport generates operating revenues through
hangar rents, ground leases, and concessions.
• The Airport expends operating funds for staff wages and supplies and equipment used in maintaining the safety
and security of the airfield and airport buildings.
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3 AIRPORT BUDGET
• The Airport budget is designed as an operating budget with some funds available for emergency repairs to
existing buildings and infrastructure.
• The Airport budget has little available for capital needs, including significant deferred maintenance needs.
RiversideCA.gov
4 FAA FUNDING SOURCES
• Although the Airport Improvement Program (AIP) grant
program, administered by the Federal Aviation
Administration (FAA), is available for airports with capital development needs, the movement area (runways and
taxiways) are generally prioritized.
• As Riverside Municipal Airport’s movement area capital development needs exceed available FAA funding,
using FAA funding for deferred building maintenance is
not possible.
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5 ROOF ASSESSMENTS
• The Airport contracted with a roofing company to
conduct assessments of all airport roofs, including
numerous hangars and the main terminal building.
• The total cost estimate for roof replacements and
rehabilitation airport-wide equal $3,340,000-$3,720,000.
This includes roofs on 17 airport buildings. Additionally, the Airport intends to replace hangar doors on each of
two original hangars on the airport, with cost estimate of $189,000.
RiversideCA.gov
6 AIRPORT DEFERRED MAINTENANCE NEEDS
RIVERSIDE MUNICIPAL AIRPORTWORK TYPE BUDGETS CONCERNS & UNFORESEEN ITEMS BUILDING Q. / FAA / FLAT ROOF REROOF 400,000.00 $ 450,000.00$ Wood decking / asbestos / ponding BUILDING Q. / FAA / TILE ROOF REROOF 200,000.00 $ 215,000.00$ Wood decking / fascia / tile HANGER E REROOF 200,000.00 $ 225,000.00$ Wood decking / fascia / weight / ponding CIVIL AIR PATROL / CAVU RESTORATION 200,000.00$ 220,000.00$ Rust / Skylights MAIN BUILDING RESTORATION 205,000.00 $ 225,000.00$ Wood decking / drainage ATP HANGER RESTORATION 110,000.00$ 120,000.00$ HANGER F ‐ FLIGHT ACADEMY REROOF 80,000.00 $ 90,000.00$ Wood decking / fascia / weight / ponding HANGER F ‐ HANGERS REROOF 170,000.00 $ 190,000.00$ Wood decking / fascia / weight / ponding AIRPORT OPS/MAINTENANCE REROOF 80,000.00 $ 100,000.00$ Wood decking / asbestos / ponding CAF RESTORATION & REPAIRS 115,000.00$ 130,000.00$ Rust / Skylights BUILDING J. / RAS JETPORT RESTORATION & REROOF 220,000.00$ 240,000.00$ Rust / wood decking HANGER LR E S T O R A T I O N 95,000.00$ 110,000.00$ Rust HANGER MR E S T O R A T I O N 90,000.00$ 100,000.00$ HANGER TR E S T O R A T I O N 145,000.00$ 160,000.00$ Skylights HANGER T1 RESTORATION 55,000.00$ 65,000.00$ Skylights HANGER WR E S T O R A T I O N 550,000.00$ 610,000.00$ HANGER VR E S T O R A T I O N 425,000.00$ 470,000.00$ 3,340,000.00$ 3,720,000.00$
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9 CALTRANS AIRPORT LOAN
• Terms up to 17 years at 5.00% interest.
• Annual debt service will total $177,398.28, equating to $14,783.19 per month.
• Without early paydown, total interest will equal
$1,015,770.82 over the 17-year life of the loan.
RiversideCA.gov
10 AIRPORT COMMISSION SUPPORT
• At the November 9, 2023 Airport Commission meeting,
the Airport Commission unanimously expressed support
for this loan.
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11 Strategic Priority No. 5 – High Performing Government Goal No. 5.3 – Enhance communication and collaboration with community members to improve transparency, build public trust, and encourage shared decision-making.
STRATEGIC PLAN ALIGNMENT
RiversideCA.gov
12 RECOMMENDATIONS
That the City Council:
1. Adopt a Resolution to authorize application for, and potential award of, a $2,000,000 loan from the California Department of Transportation Division of Aeronautics to the Riverside Municipal Airport Enterprise fund for extensive roof replacements and rehabilitation for buildings and hangars at the Riverside Municipal Airport;
2. With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record an increase of $2,000,000 in revenue and appropriate expenditures in an equal amount in the Airport Enterprise Fund to be used towards roof rehabilitation/replacement as described herein;
3. With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record a corresponding appropriation for annual debt service payments in accordance with the debt amortization schedule to be paid from the Airport Enterprise Fund; and
4. Authorize the Chief Financial Officer and Airport Manager, or authorized designees, to execute all documents necessary to complete the financing transaction, including making minor and non- substantive changes.
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