Airport Committee

MINUTES CITY OF LINCOLN AIRPORT COMMITTEE April 16, 2025 The meeting was conducted in person at City Hall, 600 6th Street, Lincoln, CA, and virtually on Zoom. 1. CALL TO ORDER by Councilmember Pearl at 9:59am. 2. ROLL CALL: Committee members present: Whitney Eklund, Councilmember (10:02am) Richard Pearl, Councilmember Bob Cooperrider Clara Ellis Lesa McArdle Committee members absent: Dan Clarke Byron Maynard Staff Liaisons present: Matt Medill, Public Works Director Scott Boynton, Maintenance Services Manager 3. PLEDGE OF ALLEGIANCE – led by Scott Boynton 4. CITIZENS ADDRESSING THE COMMITTEE (Within the subject matter jurisdiction of the Board / Commission / Committee) None. 5. STAFF UPDATES 5.A Airport Financial Report (Nita Wracker) Assistant City Manager/Finance Director Nita Wracker provided handouts made part of these minutes by mention thereof as well as updates regarding the Airport Financial Report. A brief discussion between staff and committee members ensued. 5.B Ground Lease Rate Regional Survey Results (M. Medill) Public Works Director Matt Medill provided updates regarding the fee survey results. A brief discussion ensued between staff and committee members. The committee requested that Staff bring recommendations back to the committee regarding lease rates an annual waitlist fee for further discussion. 5.C CAM Charge Ad Hoc Committee Update (M. Medill) Public Works Director Matt Medill provided updates and potential options regarding a CAM Charge Fee which were discussed at a CAM Charge Ad Hoc Committee Meeting. And requested feedback and recommendations from the Committee. Discussion ensued. 5.D Airport Management RFP Ad Hoc Committee Update (M. Medill)

Page 2 of 2 Airport Committee Regular Meeting Minutes April 16, 2025 Public Works Director Matt Medill provided updates regarding the Airport Management RFP and requested direction from the committee to advertise the RFP. Discussion ensued. Lesa McArdle made a motion to publicize the RFP without the FBO. Clara Ellis seconded. Motion passed unanimously by the following voice vote: Lesa McArdle – Aye, Clara Ellis – Aye, Whitney Eklund – Aye, Richard Pearl – Aye, Bob Cooperrider – Aye, Dan Clarke – Absent, Byron Maynard - Absent. (5,0,0,2) 6. NEW AND CONTINUING BUSINESS 6.A Jet Landing Fee Regional Survey Results for Discussion and Direction (M. Medill) Public Works Director Matt Medill provided updates and a proposal for Jet Landing Fees. Discussion ensued. Lesa McArdle made a motion to remove the waiver for the 200 gallon fuel purchase. Motion seconded by Bob Cooperrider. Motion passed unanimously by the following voice vote: Lesa McArdle – Aye, Bob Cooperrider – Aye, Whitney Eklund – Aye, Clara Ellis – Aye, Richard Pearl – Aye, Dan Clarke – Absent, Byron Maynard - Absent. (5,0,0,2) Further discussion ensued. 6.B Upcoming Events: Wings and Wheels August 22-23, 2025 • Lincoln Speedfest & Car Show Councilmember Richard Pearl provided updates and information pertaining to the upcoming events. Discussion ensued. 7. NEXT REGULARLY SCHEDULED MEETING – June 8, 2025 11. ADJOURNMENT Councilmember Pearl adjourned the meeting at 11:41am. Submitted by Jessie Krost, Deputy City Clerk _________________________

LOGITECH: AND WE WELCOME TO THE APRIL MEETING OF THE AIRPORT COMMITTEES. SO WE'LL TAKE THE ROLE. YES, YES, SHAWN IS NOT HERE, BUT I KNOW LOGITECH: NITA IS GOING TO BE SITTING IN FOR HIM. LOGITECH: WHITNEY. I JUST SPOKE WITH HER A FEW MINUTES AGO. SHE'LL BE LATE. LOGITECH: I'M HERE DAN IS. I DON'T SEE DAN ANYTHING. BOB IS HERE. LISA IS HERE. LOGITECH: ENVIRONMENT WILL PROBABLY ARISE AT SOME POINT. LOGITECH: SO TO ORDER, ROLL, CALL PLEDGE OF ALLEGIANCE. SCOTT, WOULD YOU JUST WOULD YOU PLEASE STAND LOGITECH: PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS? ONE NATION UNDER GOD, INDIVISIBLE, WITH WHICH WE BELIEVE LOGITECH: THAT'S CORRECT. LOGITECH: GOOD. LOGITECH: DO WE HAVE ANYONE ONLINE? LOGITECH: WE HAVE NO HANDS RAISED LINE LOGITECH: STAMPED REPORTS. LOGITECH: THERE'S NEATO MAPPERS. LOGITECH: YOU ARE OKAY, WE CAN SHIFT AROUND IF YOU WANT TO DO SOMETHING. NO, THAT'S FINE. LOGITECH: SO I PROVIDED AN UPDATED FINANCIAL REPORT FORMULA ERROR AT THE BOTTOM OF MY ORIGINAL REPORT. LOGITECH: BUT YOU CAN SEE THE FINANCIALS PROVIDED ARE PRETTY STANDARD FOR WHAT THEY ARE EVERY OTHER MONTH. LOGITECH: WE ARE AT THE MOMENT PROJECTING ABOUT LOGITECH: $420,000 IN DEFICIT FOR THE CURRENT YEAR. LOGITECH: BUT WE'LL SEE HOW WE GO THROUGH THE REST OF THE YEAR. SO IT'S A YEAR TO DATE ACTUAL. IS THAT SO? YOU THINK AT THE END WE'LL BE SHY, OR THE CHANCE ON COMING BACK AND CUTTING INTO THAT YEAR TO DATE DEFICIT, BECAUSE NOW WE'RE COMING UP INTO LOGITECH: FLYING SEASON, AND YOU SHOULDN'T SELL ANY MORE GAS. IT'S HARD TO SAY. I MEAN, IT'S POSSIBLE THAT IT COULD. IT COULD REDUCE. WHAT WAS THAT NUMBER? AGAIN? 420,000 DEFICIT. YEAH, BY THE TIME YOU LAST? LOGITECH: YEAH, THAT'S ON THE LAST PAGE OF THE REPORT RIGHT? LOGITECH: AND THIS IS ASH. LOGITECH: YEAH. SO IT DOESN'T INCLUDE THE APPRECIATION. LOGITECH: WELL, DEPRECIATION IS NEVER POSTED UNTIL THE END. LOGITECH: AND THEN, IN ADDITION TO THAT, WE PROVIDED OUR SUMMARY OF THE FINANCIAL ACTIVITY LOGITECH: WHICH IS ONLINE THAT DID NOT CHANGE. LOGITECH: IF YOU HAVE ANY OTHER QUESTIONS, I'M HAPPY TO DIVE INTO THEM. LOGITECH: MORNING, SCOTT, WE DO HAVE SOME MEMBERS IN THE PUBLIC HERE. LOGITECH: IT'S GOT HIS CHAIR OR TAA. AT LINCOLN, CHAPTER 1541. LOGITECH: RICHARD, CAN WE HAVE ANY KIND OF SPECULATION ON WHAT IS CAUSING THAT DEFICIT. LOGITECH: YEAH, WE DID SOME PROJECTS THIS YEAR. SO THE HERE PART IS TYPICALLY A BREAK EVEN OPERATION THAT REALLY JUST BRINGS IN JUST ENOUGH REVENUE TO HAVE OUR OPERATIONS SO ANYTIME THAT THERE ARE ADDITIONAL EXPENSES, LOGITECH: LIKE A REHAB TO THE PILOT'S LOUNGE OR ADDITIONAL CRACK SEAL OR ANYTHING OF THAT SORT, PUSHES THE AIRPORT INTO A DOWN STATUS LOGITECH: ABOUT FOR YOUR INFORMATION. WE'RE ALSO PAYING FOR THE SINS OF THE PAST WHERE WE RAN DEFICITS IN THE GENERAL. OKAY? AND SO NOW WE'RE WE'RE PUSHING THAT PAYOFF IN OUR IN OUR EXPENSES. THAT $100,000 140,000. LOGITECH: WELL, ACTUALLY THAT 140 INTEREST HAS TO DO WITH THE AIRPORTS SHARE OF THE BOND. LOGITECH: THAT'S RIGHT. THE 160,000 THE TRANSFER OUT. LOGITECH: I'M JUST PICKING OUT THE NOTES. LOGITECH: THE 150,000 IS THE ADMIN ALLOCATIONS, THE ALLOCATION THAT EVERY DEPARTMENT RECEIVED CARE OF. LOGITECH: AND THAT'S THEIR SHARE OF THE COST FOR FINANCE ATTORNEY, IT CITY MANAGER, RIGHT? AND THEN THE DEBT SERVICE INTEREST OF 6,400, THAT SERVICE PRINCIPAL, 134,253. THAT IS THE AIRPORT SHARE OF THE PAYOFF OF THE BONDS, AND ALSO A SMALL PORTION OF CITY HALL, SO THAT LOGITECH: ALL THE FUNDS PAY A PORTION OF THAT. OKAY, SO THE 134 IS THE ONE AGAINST THE 5 MILLION. NO, THAT IS THE PAYOUT OF THE BONDS FOR THE CONSTRUCTION OF COURTYARD AND THE CONSTRUCTION OF CITY HALL. OKAY. LOGITECH: THE 164,000 IS TO PAY OFF UP TO 5 MILLION. LOGITECH: DO WE HAVE. LOGITECH: CAN YOU IDENTIFY THE ONE OFF EXPENSES THAT WE HAD LAST YEAR? SUCH AS LOGITECH: THAT REMODEL ON THE I BET YOU CAN IDENTIFY THEM BETTER THAN I CAN, OR MAYBE SCOTT CAN PROBABLY IDENTIFY THE PROJECTS LAST YEAR BETTER, I THINK THE ONLY ONES LAST YEAR WERE CRACK SEAL PAINTING AND THE INTERIOR PICE, LOUNGE FLOORING. LOGITECH: DO WE KNOW HOW MUCH THAT EQUALS TO PROPERLY OFF THE TOP OF MY HEAD? NO. BUT WE HAVE THAT NUMBER. YEAH. OKAY. ALRIGHT. LOGITECH: I WANT TO SAY. PROBABLY I'LL BALLPARK IT, BUT ABOUT 50 ISH SOMEWHERE IN THAT RANGE. SO IF IT IS 50 ISH, THAT'S EXPENSE THAT WE WON'T HAVE CORRECT AGAIN THIS YEAR WE'RE GOING TO DO MORE CRACKS. IS THAT WHAT'S ON THIS LAST PAGE UNDER CONSTRUCTION? LOGITECH: I STILL THINK WE'RE AROUND 50. ISH PROBABLY WOULD HAVE TO LOOK TO SEE THAT LOGITECH: EXACTLY, BUT THERE MIGHT BE SOME OTHER ITEMS IN THERE I'M NOT AWARE OF. WELL, THEN, YOU KNOW, AS WE TALK, START TALKING ABOUT THE CAM LOGITECH: CONVERSATION. THOSE ARE EXPENSES THAT WOULD BE COVERED BY THE CAMPS WERE COLLECTED, YOU KNOW, IN THE IN THE. IN THE INTERIM THOSE EXPENSES WOULD STILL BE BORNE BY THE FUND RIGHT. LOGITECH: THAT ESSENTIALLY WOULD BE WHAT WE WOULD USE THE CAMP BEFORE IS MAINTAINING. SO WE WOULD START TO SEE THAT IT IS IN LOGITECH: SCOTT. IF YOU WOULD NEED TO. JUST, WE'RE GOING TO IDENTIFYING THOSE OKAY? GOOD. LOGITECH: ANY OTHER QUESTIONS ON THE FINANCES UNTIL WE COME BACK AND FIND THAT WELL, I STILL HAVE MORE QUESTIONS ABOUT BEING ABLE TO AFFORD AND FUND THE CRACK CEILING THAT NEEDS TO BE DONE. NOW. THIS IS HOW MUCH YOU'RE SAYING. ABOUT 50,000 HAS BEEN EXPENDED ALREADY. LOGITECH: RIGHT? BUT THAT DIDN'T. THAT DID INCLUDE OTHER ONE TIME PROJECTS, FOR EXAMPLE, THE LITTLE REFRESH OF THE PILOT LOUNGE, WHICH DOESN'T OCCUR EVERY SINGLE YEAR. BUT YEAH, THE-THE CRACK SEAL IS AN EXPENSE THAT IS CHALLENGING FOR THE AIRPORT. LOGITECH: AND SO ARE WE GONNA BREAK EVEN LOGITECH: RIGHT NOW? IT'S SAYING, DEFICIT OF LOGITECH: 420. THAT'S GONNA THAT'S THAT'S YEAR TO DATE. THAT'S YEAR TO DATE. RIGHT? AND SO, AND THE PROJECTION FOR THE END OF THE YEAR IS BREAK, EVEN BREAK EVEN. LOGITECH: AND THAT INCLUDES THE AMOUNT OF CRACK SEALING THAT WE'VE DONE THIS YEAR. WELL, THE PROJECTION FOR THE END OF THE YEAR IS NOT WORK EVEN. IT'S A LOSS OF 1 MILLION DOLLARS. LOSS OF A MILLION DOLLARS LOGITECH: CORRECT? LOGITECH: WELL, NOT BASED ON BUDGET THAT IS BASED. YES, THAT IS THE PROJECTED BASED ON BUDGET. LOGITECH: IT WAS THE LAST OF THEM I KNOW. LOGITECH: AND SO WE'RE GONNA KEEP LOSING IF WE DO ANYTHING. THAT IS THE CHALLENGE OF THE AIRPORT. LOGITECH: SO HOW CAN WE BE LOOKING AT AT PROJECTS? WE'RE WE'RE GOING TO BE TALKING ABOUT FINANCIAL OPTIONS AND SOME OF THE UPCOMING AGENDA ITEMS TODAY. YEAH. BUT THE REALITY IS THAT IF WE LOGITECH: DON'T DO PROJECTS THAT THE AIRPORT WILL CONTINUE TO DETERIORATE TO WHERE IT IS UNUSABLE. SO IT IS A CHALLENGE FOR THE AIRPORT BASED ON ITS SMALL REVENUE BASE. SO WE ARE CONTINUING TO AS ALLUDING TO DISCUSS ADDITIONAL REVENUE GENER GENERATING OPTIONS, BUT WITHOUT AT LEAST THE BASE MAINTENANCE. LOGITECH: THE AIRPORT WON'T BE ABLE TO CONTINUE OPERATING LOGITECH: ABSOLUTELY. AND SO THE CITY FROM OTHER FUNDS IS BASICALLY COVERING. IT IS EATING INTO ITS OR INCLUDE ACTUALLY ADDING TO ITS NEGATIVE FUND BALANCE. LOGITECH: OKAY? BUT CASH WISE. LOGITECH: IT HAS CASH. IT HAS A POSITIVE CASH FLOW. LOGITECH: IT'S THAT BIG LOAN THAT'S 202 MILLION DOLLARS A YEAR THAT WE'RE PAYING BACK. AND ALL THE PORTIONS OF ONE SECOND OVER THAT. RIGHT? OKAY, THERE ARE PROBABLY GO THROUGH THIS AT THIS POINT. LET US JUST TABLE IT. COME BACK WITH A PRO FORMA FOR THE END OF THE YEAR. LOGITECH: I'LL ADDRESS ALL THESE THAT WOULD BE GOOD. THAT'D BE VERY HELPFUL. OKAY. LOGITECH: IS THAT OKAY? YEAH. OKAY. LOGITECH: OH, ANY OTHER QUESTIONS THAT WE SHOULD CONSIDER IN COMING UP WITH THE LOGITECH: YEAH. IF YOU WANNA RICHARD, DO YOU WANT TO GET WITH ME? LOGITECH: YOU HAVE TO REMEMBER THAT THE BUDGET IS WAS PRODUCED LAST YEAR. AT THIS POINT THINGS CHANGE. THAT'S WHY I'M JUST SAYING THAT, YOU KNOW, RIGHT NOW, BASED ON WHERE WE ARE YEAR TO DATE. WE'VE GOT A LOSS LOGITECH: OF $420,000. BUT WE'RE ALSO COMING INTO ONE OF OUR HIGHER SEASON, YOU KNOW, FOR GUESTS. LOGITECH: AND THAT'S WHAT WE MAKE, YOU KNOW, HALF OF OUR MONEY, ANY QUESTIONS ON THE NATURALS. LOGITECH: ANOTHER CAN OF WORMS. WE'LL CLOSE THE CAN OF WORMS NEXT MONTH. LOGITECH: SURVEY APP LOGITECH: GOOD MORNING. SO LAST MONTH THERE WAS ALSO A ROBUST DISCUSSION ABOUT THESE RATES AND A SURVEY AND STAFF, AND I CONTACTED SEVERAL AIRPORTS AS WELL AS LOGITECH: LOOKED AT THE PREVIOUS. I BELIEVE IT WAS 2023. EL DORADO COUNTY HAS A A FEE SURVEY THAT THEY DO A VERY ROBUST EFFORT. THIS YEAR THEY STOPPED HALFWAY. THEY ACTUALLY WENT OUT AND CONTRACTED FOR A CONSULTANT TO PERFORM A VERY ROBUST FEE SURVEY. SO I THINK THAT'LL BE VERY INFORMATIVE. LOGITECH: AND THAT'S COMPLETE, AND WE WE CAN USE THAT THIS LIMITED SURVEY. WE DID LOOK AT SOME OF THE REGIONAL AIRPORTS, AND AND MY MAIN TAKEAWAY HERE IS LOOKING AT THE EL DORADO AIRPORT, NEVADA COUNTY AIRPORT LOGITECH: AND THE PLACERVILLE AIRPORT AND SEEING THE BASE GROUND LEASE RATE AT ABOUT 8 CENTS PER SQUARE FOOT. CURRENTLY A LOT OF OUR RATES. THE GROUND LEASE RATE IS LESS THAN 5 CENTS A FOOT. I KNOW SOME OF THE MOST RECENT RENEWED GROUND LEASE LOGITECH: CONTRACTS INCLUDED 5 CENTS, WITH, I BELIEVE, THE OPTION AFTER RATE SURVEY TO INCREASE UP TO 50% SHOULD BE ABOUT 7 AND A HALF CENTS. LOGITECH: THAT'S MY MY KEY TAKEAWAY. THE AUBURN AIRPORT IS AT 6 CENTS. A LOT OF THESE OTHER AIRPORTS DIDN'T HAVE AN APPLICABLE GROUND LEASE RATE THAT WE COULD LOGITECH: USE FOR THIS FOR THIS SURVEY. BUT JUST THINKING ABOUT THAT. THAT IS MY MAIN TAKEAWAY. LOGITECH: WE ALSO INCLUDED. TIE DOWN DAILY RATES. LOOKS LIKE WE'RE KIND OF IN THE THE MIDDLE OF THE PACK LOGITECH: AS WELL AS TIE DOWN MONTHLY RATES A LOT OF THE AIRPORTS SCALE BASED ON SIZE, THE FOOTPRINT OF THE AIRCRAFT LOGITECH: FOR TIE DOWNS, AND THEN MONTHLY HANGERS. LOGITECH: YOU CAN SEE THE RANGE. THERE IS LOGITECH: THE LARGER THE HANGAR, OBVIOUSLY, USUALLY THE THE GREATER LOGITECH: THE RENTAL RATE AND HANGAR RATE RATES OBVIOUSLY ARE A LOT HIGHER THAN GROUND LEASE RATES. LOGITECH: ONE ITEM TO NOTE, AS FAR AS, AND I KNOW IT'S BEEN MENTIONED BEFORE. BUT WE DO HAVE THE PLASTER HANGERS, 29 HANGERS THAT ARE REVERTING TO THE CITY IN DECEMBER. I BELIEVE THE THE MONTHLY LEASE REVENUE IS IN THE $3,000 A MONTH. RANGE. I BELIEVE LOGITECH: IT MIGHT ACTUALLY BE EVEN A THOUSAND DOLLARS A MONTH, BUT IT WOULD. IT WOULD BECOME $13,000 A MONTH IF WE WERE TO OWN AND MAINTAIN THOSE. LOGITECH: SO THERE, THAT IS ANOTHER OPTION, AND THAT'S FOR FUTURE DISCUSSION. BUT THERE IS AN OPPORTUNITY, AS LEASE, RE LEASE, RATE, GROUND LEASES, RENEW THAT WE ADJUST THAT GROUND LEASE RATE LOGITECH: COUPLE OF QUESTIONS THAT I HAVE ONE ON THE ABOUT HANGERS LOGITECH: WHEN IT'S UP AT THE END OF DECEMBER THIS YEAR. YEAH, I BELIEVE IT REVERTS TO CITY OWNERSHIP DECEMBER FIRST.ST WHEN DOES THAT LOGITECH: PERIOD START? IN OTHER WORDS, WHEN DO THEY HAVE TO GIVE? WHAT'S THE LATEST THAT THEY CAN GIVE NOTICE TO US WHETHER THEY WANT TO RENEW OR NOT. LOGITECH: THAT IS IN OUR CONTROL, AND I'VE I'VE SPOKE TO THE GENTLEMAN THAT MANAGES THOSE HE IS INTERESTED AS WELL AS OTHER PARTIES, AS FAR AS DISCUSSING OPPORTUNITIES TO LOGITECH: HAVE A NEW ARRANGEMENT. YOU KNOW THERE'S AN OPPORTUNITY TO RENEW AND SIGNIFICANTLY INCREASE THE REVENUE LOGITECH: AND NOT OWN AND MAINTAIN THOSE. AND IT'S A TRIPLE NET LEASE WHERE THE OWNER, I BELIEVE, LOGITECH: PAYS THE INSURANCE. THEY PAY THE GROUND LEASE RATE, AND THEY PAY ANY MAINTENANCE EXPENSES LOGITECH: AND A LOT OF THE REVERSIONS. AGREEMENTS REQUIRE THAT THE LOGITECH: CONTINUING OWNER THAN THE NEW OWNER, WHOEVER THE NEW TENANT IS ACTUALLY IS OBLIGATED TO POTENTIALLY INVEST RESOURCES LOGITECH: AS PART OF THAT ARRANGEMENT. LIKE THEY MIGHT HAVE TO REROOF THE THE HANGAR. THEY MIGHT HAVE TO UPGRADE THE ELECTRICAL. LOGITECH: AND IT'S ALL, YOU KNOW, NEGOTIABLE. LOGITECH: OKAY, DO WE HAVE A START DATE WHEN WE'RE GONNA BE TAUGHT SITTING DOWN FOR SOME SERIOUS DISCUSSIONS WITH THEM. LOGITECH: THERE HASN'T BEEN A START DATE SET FOR THAT. LOGITECH: OKAY, I'M JUST BECAUSE I'M THINKING THAT WE SHOULD PROBABLY SHOULD GET STARTED SOONER RATHER THAN LATER YOU ALREADY STARTED. BUT I MEAN IN ORDER. WE CAN'T WAIT TO THE LAST TO DECEMBER TO FIGURE OUT OOPS. OKAY, NOW, WHAT ARE WE GONNA DO. AND AND I THINK THAT'S PART OF THE AIRPORT MANAGEMENT CONTRACT CONSIDERATIONS. LOGITECH: BECAUSE IF WE DO HAVE AN AIRPORT MANAGEMENT COMPANY, POTENTIALLY, THEY HAVE LOGITECH: FACILITIES MAINTENANCE SERVICES AS PART OF THAT CONTRACT, AND MAYBE THAT ADDITIONAL REVENUE WOULD HELP FUND LOGITECH: IF THEY'RE NOT GOING TO GET A FUEL LOGITECH: FLOWAGE FEE. MAYBE THAT ADDITIONAL REVENUE FROM THAT HANGER LEASE WOULD HELP FUND THE AIRPORT SERVICES MANAGEMENT CONTRACT LOGITECH: AS WELL AS FUTURE REVERSIONS. LOGITECH: DO WE HAVE? DO WE HAVE ANY OTHER REVERSE POTENTIAL REVERSIONS OUT THERE. LOGITECH: WE WE LIKELY DO. I WOULD I WOULD HAVE TO GO BACK. WE WE DID PRESENT, AND NOT TO THIS COMMITTEE, BUT I BELIEVE ABOUT A YEAR AGO WE DID CREATE A LOGITECH: A BIG SPREADSHEET WITH ALL OF THE LEASE. ALL OF THE LEASE TERMS LOGITECH: KIND OF CAPTURED IN A BIG TABLE, SO WE COULD BRING THAT BACK. OKAY? AND SHARE THAT. YEAH. LOGITECH: IF WE DO THAT FOR NEXT TIME, THAT WOULD BE THAT WOULD BE GOOD. LOGITECH: SO I HAVE A QUESTION, BUT WHAT WOULD BE THE DIFFERENCE BETWEEN LOGITECH: RE UPPING RELEASE WITH THE CURRENT AND LOGITECH: VERSUS IF WE WERE TO TAKE IT OVER AND THEN LEASE IT AT CITY OWNED AND LEASE IT. WHAT WOULD BE THE WHAT WOULD BE THE DIFFERENCE IN NET INCOME TO THE CITY? THE DIFFERENCE WOULD BE THAT THOSE HANGARS ARE OLD, AND WOULD ALL NEED TO BE REPAIRED AND UPGRADE, SO THERE WOULD BE A LARGE CAPITAL OUTLAY BEFORE THE CITY COULD RELEASE THEM. LOGITECH: BUT IF THE IF A LEASE RENEWAL GOES INTO EFFECT, THEN THAT THAT BURDEN STAYS WITH THE LEASE. LOGITECH: SO THAT'S THE INCENTIVE TO DO THAT. BUT THERE'S NO GUARANTEE THAT THEY WOULD UPGRADE. LOGITECH: NO, AND FROM THE THE PARTIES THAT I'VE SPOKEN WITH THEY THEY MENTIONED THERE WAS CERTAIN UPGRADES THEY WOULD INTEND TO DO SO I THINK THERE WOULD BE SOME LOGITECH: IMPROVEMENTS THAT WOULD BE DONE AS PART OF THE NEGOTIATION. BUT I I'D HAVE TO LOOK BACK AT THE NUMBERS, BUT I THINK CURRENTLY WE GET MAYBE A THOUSAND DOLLARS A MONTH. IF WE RENEWED WITH A NEW TENANT HANGER OWNER, I BELIEVE IT WOULD ABOUT TRIPLE OUR REVENUE. SO MAYBE WE GO FROM A THOUSAND TO 3,000 A MONTH. LOGITECH: AND SO OUR REVENUE, I THINK, NO MATTER WHAT IS, GONNA GO UP. BUT IF WE WERE TO JUST BECOME THE OWNER WE'D HAVE THE MAINTENANCE LIABILITY. BUT THE REVENUE WOULD WOULD GO UP MORE THAN $10,000 A MONTH. LOGITECH: SO IT'S IT'S A. IT'S A BUSINESS DECISION THAT NEEDS TO BE DISCUSSED AND MADE. LOGITECH: THAT WILL BE PART OF THE NEGOTIATIONS. YES. LOGITECH: I DID LOOK UP THE CONSTRUCTION PROJECTS, AND THEY ARE ALL FOR THE EXTERIOR PAINT AND REHAB OF THE LOGITECH: THE OFFICE, AND ALSO SOME REPAIRS TO THE CITY ON HANGAR, AND ANOTHER THOUGHT, IF IF IT BECOMES LOGITECH: STRICTLY A GROUND LEASE AND WE DO A LONG TERM LOGITECH: WE MIGHT BE ABLE TO GENERATE A SIGNIFICANT AMOUNT OF REVENUE THAT WOULD HELP FUND THE AIRPORT RUNWAY LOGITECH: LOCAL MATCH, WHICH IS OVER A MILLION DOLLARS, AND THAT WE NEED THAT MONEY BY THE END OF 2028 TO FUND OUR RUNWAY PROJECT. SO THAT'S ANOTHER CONSIDERATION. AND LOGITECH: STRATEGY MOVING FORWARD IS, HOW DO WE RAISE THAT FUND THAT MONEY FOR THE RUNWAY PROJECT? LOGITECH: AND SO WE HAVE ASSETS THAT WE CAN LEVERAGE TO HELP HELP IN THAT CASE. LOGITECH: AND YOU KNOW, IF WE CAN JUST DO A DEEPER DIVE ONTO THE CONSTRUCTION BECAUSE WE'VE ALREADY. I ASSUME WE'VE ALREADY PAID FOR ALL OF THE THE REHAB OF THE OF THE OFFICE. LOGITECH: SO THE OFFICES PROBABLY WILL PAY FOR ALREADY. AND THEN, WHATEVER WE HAVE LEFT THEN WOULD BE HANGAR QUESTION IS, 60,000 IS, WE'RE GONNA SPEND $300,000 ON ON HANGAR REFURBISHMENT. SO LOGITECH: THAT IS THE REQUESTED BUDGET AMOUNT RIGHT? LOGITECH: THAT'S ALSO FOR RUNWAY REHAB, AND A PORTION OF THAT IS FOR THE THE ANNUAL AIRPORT GRANT LOGITECH: BACK TO THE SPREADSHEET WITH ALL THE LEASES? DO WE HAVE INFORMATION OR DATA ON HOW MANY AIRPLANES AIRCRAFTS ARE IN ALL OF THE EXISTING HANGARS, THINKING OF LOST REVENUE OR POTENTIAL LOGITECH: RECAPTURED REVENUE WITH FUEL SALES. DO WE HAVE ANY IDEA OR DATA ON HOW MANY ARE TRULY UNDER THE REGULATION IN THOSE OTHER 3RD PARTY HANGERS THAT ARE USING OR HAVE AIRPLANES NEEDING THE LOGITECH: REGULATION. AND THEN ALSO HOW MANY OF THOSE ARE ACTUALLY COMING IN AND OUT AND GENERATING? WE DO. OKAY, THAT WOULD BE GREAT TO BE ABLE TO SEE THAT. LOGITECH: YEAH? I ASKED TODAY, RIGHT BEFORE THE MEETING FOR THAT INFORMATION. AND WHAT WAS REPORTED BACK TO ME WAS 218 HANGERS TOTAL. YOU'RE LIKE, EVERY TIME WE STATE THAT NUMBER IT'S A LITTLE DIFFERENT. SO IT'S IT'S CLOSE TO 2, 18, AND THEN 130 TIED DOWNS LOGITECH: POTENTIAL. NOT NOT ALL YEAH POTENTIAL. AND THAT SHRINKING. AND HOW MANY LEASE, HOW MANY TIE DOWN LEASE DO WE HAVE? HOW MANY RENT, HOW MANY RENT? PROBABLY NOT EVEN A 3RD OF THAT. I WOULD SAY LOGITECH: WE HAVE THAT NUMBER. I JUST DON'T HAVE IT NOW, BUT FOR OUR CONVERSATION NOW, PROBABLY A 3RD OF THAT NUMBER. WHAT WAS IT? 1, 1, 31, 30. YEAH. LOGITECH: A 3RD ISSUE OF THAT WOULD BE LOGITECH: AT LEAST, I'D LIKE TO SEE THAT NUMBER. LOGITECH: SO GOING BACK TO MATT'S COMMENT ON THE LASSER HANGERS, THE SOUTH HANGERS, THE THE WHITE. SO THOSE ARE 28 HANGERS RIGHT THERE IN THAT ONE ROW. SO JUST IN. DID THE MATH LOGITECH: RIGHT NOW LOGITECH: THAT LEASE WAS DONE ALMOST 47 YEARS AGO, AND THE COMPENSATION AT THE TIME THAT WAS PUT IN PLACE THERE WAS NO, THERE WAS NO ROOM, NOTHING IN REFERENCE, I BELIEVE, FOR A CPI INCREASE FOR THE LAND LEASE. SO RIGHT NOW, I THINK WE'RE RECEIVING PROBABLY AROUND $800 A MONTH LOGITECH: IN INCOME FOR THE LAND LEASE. NOW, WHEN IT REVERTS BACK TO US, IF WE RAISE THAT UP TO A NICKEL, A SQUARE FOOT THAT EQUALS OUT TO ABOUT $24,000 IN INCOME A YEAR JUST FROM THAT 2828 UNITS. LOGITECH: RIGHT NOW, WE'RE CURRENTLY GETTING A LITTLE BIT LESS THAN 10 GRAND RIGHT NOW IN IN OUR AGREEMENT. SO THAT WOULD BE A NET POSITIVE. LOGITECH: A LITTLE BIT OVER $14,000 A YEAR TO THE AIRPORT. ANOTHER THING TO REALIZE, TOO, IS EVERYBODY THAT'S BEEN OUT TO THAT. THAT ROW AGAIN. THOSE WERE CONSTRUCTED ALMOST 48 YEARS OF 47 YEARS AGO. THE ASPHALT IS DEGRADING. IT'S PROBABLY THE WORST ONE OF THE WORST PLACES ON THE AIRPORT. LOGITECH: SO IF YOU HAD BYRON SITTING HERE RIGHT NOW, HE WOULD SAY, HEY, YOU KNOW WHAT ROCK CHIPS ON PROPS, AND THAT IS, THAT'S A REAL ITEM RIGHT THERE. SO IN ORDER TO RIP OUT THAT WHOLE APRON AND RECONSTRUCT THAT ALL THE OLD ASPHALT YOU'RE TALKING HUNDREDS OF THOUSANDS OF DOLLARS FOR THAT. SO LOGITECH: THAT'S A BIG DEAL. SO WHOEVER WHOEVER IS, AND AND AND SO WHOEVER TAKES THAT OVER, MEANING EITHER THE CITY OR WITH MATT'S IDEA, SAYING, HEY, YOU KNOW, SELL THOSE AND KEEP THE MONEY FOR OUR LOGITECH: 2028 RUNWAY RECONSTRUCTION PROJECT. WHOEVER TAKES OVER THAT LEASE. LOGITECH: I THINK IT SHOULD BE MANDATORY THAT THEY HAVE SOMETHING IN THERE THAT SAYS WE'LL REPAIR THAT ASPHALT. THAT'S 1ST THING. SECOND THING IS, WHEN YOU COME INTO THE AIRPORT. THAT'S THE 1ST THING YOU SEE, YOU SEE, 47 YEAR OLD HANGERS, AND IT'S JUST LIKE WHEN YOU GO INTO YOUR FRONT OFFICE, INTO YOUR BUSINESS. LOGITECH: IF IT'S A DISASTER, THAT'S HOW YOU'RE PRESENTING YOUR BUSINESS. WELL, THIS IS A BUSINESS. SO THAT'S THE 1ST THING THAT YOU SEE. SO LOGITECH: I WOULD SAY THAT WHOEVER TAKES THAT OVER THEY MUST PAY FOR LOGITECH: THEY MUST DO SOMETHING, SO REPRESENTS OUR AIRPORT IN A BETTER LIGHT. I THINK WE'LL YOU'RE RIGHT ON THAT. WHEN WE TOOK OVER THE THE NUNO HANGERS THE ADMINISTRATION CAME TO THE AIRPORT COMMITTEE WITH, HERE'S WHAT WE'RE TRYING TO DO HERE ARE THE DEAL POINTS. NOW, WE'LL DO THE SAME THING AT THIS POINT OVER. YEAH, WE HAVE TO COME UP WITH THE DEAL POINTS, AND SAY, HERE'S WHAT WE WANT OUT OF IT, LOOKING AT THE LOGITECH: THE BENEFITS BOTH IF WE OWN IT, OR IF WE DO ANOTHER, LISA. BUT THE OLD WAY IS NOT GONNA HAPPEN AGAIN. LOGITECH: THAT'S THAT'S PERFECT. AS FAR WE HAVE TO BALANCE IT FROM THE REALITY OF ALL THE EXPENSES, REPAIRS THAT NEED TO BE DONE, YOU KNOW, PAINTING THE HANGER REDOING THE APRON THAT IT'S CHALLENGING LOGITECH: TO PUT ALL OF THAT INTO ONTO A LEASE ONTO A NEW LEASE. RIGHT. YOU CAN'T PUT SO MUCH ONTO A NEW LEASE THAT YOU MAKE THE PRODUCT COMPLETELY UNATTRACTIVE OR UNAFFORDABLE. LOGITECH: IT'S A BALANCING. AND THAT'S WHAT THE THAT'S WHAT CREATING VIDEO POINTS ARE ABOUT. SO STAFF WILL DO THAT. BRING IT BACK. HERE'S HERE'S THE OPTIONS OVER HERE. WE TAKE A LOOK AT IT, AND WE'LL DO WHATEVER IS BEST FOR THE AIRPORT THIS TIME RIGHT? AND AND AS BRING BACK TO MATT'S POINT ABOUT THE RUNWAY RECONSTRUCTION IN 2028, LOGITECH: THAT WE MIGHT GET A CALL EARLIER THAN THAT TO GET THAT DONE. YOU NEVER KNOW WHAT'S GONNA HAPPEN WITH THE FAA, BECAUSE THERE'S A LOT OF PROJECTS OUT THERE RIGHT NOW THAT ARE THAT ARE THEY ARE NEEDING FAA FUNDS, AND IF THOSE AIRPORTS DON'T HAVE THE MATCH AT THAT TIME TO PULL THE TRIGGER, THEY'LL LOSE IT. LOGITECH: AND THEIR PROJECT WILL BE PUT IN THE BACK OF THE STACK. SO OURS, BECAUSE OURS MIGHT COME UP QUICKER THAN 2028, I WOULD SAY WE REALLY NEED TO BE PREPARED FOR THAT. YOU KNOW, 10% MATCH MINUS THE 150,000. I THINK THAT WE WOULD GET FROM CALTRANS, WHATEVER IT IS, I THINK IT WOULD PROBABLY BE ABOUT. OUR PORTION WOULD BE MAYBE ABOUT 1.2 MILLION DOLLARS. LOGITECH: WE SELL THAT ASSET RIGHT THERE. WE HIKE UP THE GROUND LEASE. WE'LL GET MORE INCOME THAT WE'RE CURRENTLY GETTING, AND WE'LL GET THIS POT OF CASH RIGHT NOW THAT WE HAVE SITTING RIGHT THERE, AND WE CAN TELL THE FAA THAT LOOK, WE HAVE THE MONEY WE'RE WAITING. LOGITECH: AND WE COULD POTENTIALLY GET THIS DONE QUICKER. AND YOU CAN. CITY HAS FLEXIBILITY. CASH IS NOT A PROBLEM FOR THE CITY. LOGITECH: THOSE THINGS THAT CAN BE DONE. IF WE HAD TO GET THE CASH IN ORDER TO DO THE MATCH AND NOT GO TO THE BACK OF THE LINE. ALL THAT CAN BE CAN BE WORKED OUT. SO THE NO ONE KNOWS AT THIS POINT, AS YOU KNOW, WHAT THE WHAT THE LOGITECH: IS 2829, A GOOD NUMBER 2930, YOU KNOW. 2028 DOES SO. BUT I THINK WE'RE WE HAVE TO MOVE FORWARD WITH MAKE, WITH HAVING A GOOD BUSINESS PLAN MORE THAN ANYTHING ELSE. AND THAT'S AND THAT'S THE KEY, ABSOLUTELY. LOGITECH: BUT DO YOU HAVE NO THOUGHTS? LOGITECH: THE THE FLOOR INSIDE THE HANGARS. ASPHALT IS THE ELECT AND SPEAKING WITH THE CURRENT MANAGEMENT COMPANY, THE ELECTRICAL DEFINITELY NEEDS SOME WORK. SO PAINT ASPHALT AS WELL AS SOME MINOR GRADING. APPARENTLY SOME OF THE LOGITECH: HANGARS ON THE SOUTH SIDE HAVE ACTUAL INTERIOR FLOODING SOME OF THE OUT EXTERIOR FLOODS INTO THE INTERIOR. SO DEFINITELY, SOME OF THAT WOULD BE REQUIRED. BUT HE SAID THAT STRUCTURALLY THE HANGARS ARE IN EXCELLENT SHAPE. LOGITECH: THE BONES ARE OKAY. FLESH IS ROTTING. YEAH, OKAY? YEAH. LOGITECH: YEAH. I'VE SPOKEN TO A NUMBER OF THE THE OH, THE HANGAR RENTERS OUT THERE, AND YOU KNOW THEY TELL THE LITANY OF PROBLEMS, YOU KNOW, WITH IT. SO THERE'S THERE'S A BATCH OF PROBLEMS THAT-THAT STACK UP BEHIND IT THAT HAVE TO BE ADDRESSED. LOGITECH: SO ALL WE TAKE AND GET INTO THE, YOU KNOW, INTO THE DEAL POINTS. AND AND ANOTHER THING I'D JUST LIKE TO MENTION IS THAT LOGITECH: THE MANAGEMENT COMPANY ALSO EXPRESSED A DESIRE TO LET THE TENANTS KNOW EARLY WHAT THE PLAN IS SO. NOT ONLY DO WE NEED TO TALK WITH THE THE OWNER, BUT THE TENANTS EARLIER RATHER THAN LATER TO THE END, BECAUSE THERE'S A LOT OF INFORMATION THAT HAS TO BE CONSIDERED BEFORE EITHER THEY MAKE THAT MAKE THEIR DECISION OR WE MAKE OUR DECISION. WHICH WAY WE WANT TO GO. LOGITECH: YEAH. AND THERE'S A COUPLE OF OPTIONS. I MEAN, WE COULD LOGITECH: ISSUE AN RFP AND SEE WHAT INTEREST IS OUT THERE. WE CAN ENGAGE THE PARTIES THAT HAVE ALREADY EXPRESSED INTEREST. LOGITECH: THERE'S A LOT OF AVENUES WE COULD GO. LOGITECH: MAYBE ISSUING THE RFP. WOULD SOLICIT IDEAS THAT WE, YOU KNOW, VERY BROAD, OPEN RFP. MIGHT BE A A GOOD APPROACH, LIKE AN EARLY ONE, JUST TO SEE WITH NO COMMITMENT. JUST HEY! WHAT PROPOSALS CAN WE GET? LOGITECH: WHAT INFORMATION CAN YOU BRING BACK TO THE COMMITTEE BY NEXT MONTH. JUST, YOU KNOW, I'M THINKING, 30,000 FOOT OVER FLIGHT TYPE OF TYPE OF INFORMATION. JUST SO WE GET THE WHOLE GOING. W