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HomeMy WebLinkAboutReso 92-377 - Approve & Authorize the Mayor to execute the agreement for professional services between the COR & Hodges & Shutt for preparation of an update to the Redding Municipal Airport Master Plan RESOLUTION NO. V-3 7 7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF REDDING AND HODGES & SHUTT FOR PREPARATION OF AN UPDATE TO THE REDDING MUNICIPAL AIRPORT MASTER PLAN. IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows: 1 . That the City Council of the City of Redding hereby approves the Agreement for Professional Services between the City of Redding and Hodges & Shutt, a true copy of which is attached hereto and incorporated herein by reference, for preparation of an update of I the Redding Municipal Airport Master Plan. 2 . That the Mayor of the City of Redding is hereby authorized and directed to sign said Agreement on behalf of the City of Redding, and the City Clerk is hereby authorized and directed to attest the signature of the Mayor and to impress the official seal of the City I of Redding thereto. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at an regular meeting of the City Council of the City of Redding on the 1st day of September 1992, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Arness, Dahl, Kehoe & Moss NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Anderson ABSTAIN: COUNCIL MEMBERS: None CHARLIE MOSS, Mayor City of Redding A ST: FORM APPROVED: N .J 1', CONNIE STROHMAYER, i.ty Clerk RAkDALL A. HAY90,' City Attorney '� i i AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN CITY OF REDDING AND HODGES & SHUTTT FOR AIRPORT MASTER PLAN THIS AGREEMENT FOR PROFESSIONAL SERVICES, hereinafter called "Agreement, " made this day of 1992, by and between the CITY OF RIDDING, a Municipal Corporation and General Law City, hereinafter called the "CITY, " and HODGES & SHUTT, a California corporation, located at 5010 Aviation Boulevard, Santa i Rosa, California, 95403 , hereinafter called the "CONSULTANT" : W I T N E S S E T H: THAT WHEREAS the CONSULTANT is a duly qualified Airport Consulting Firm experienced in the preparation of airport plans and environmental documents; and Wim, following the Federal Aviation Administration (hereinafter called the "FAA" ) required consultant selection process, the CITY ranked CONSULTANT first in selection preference; and WHEREAS, in the judgment of the CITY it is necessary and desirable to employ the services of the CONSULTANT for the purpose of preparing an update of the Redding Municipal Airport Master Plan in accordance with Exhibit A, hereinafter referred to as the "SCOPE OF WORK, " as submitted to the FAA, and by this reference incorporated herein as though fully set forth. NOW, THEREFORE, CITY and CONSULTANT agree as follows: A. CONSULTANT SERVICES. The CONSULTANT shall complete all the tasks set forth in the SCOPE OF WORK. B. CITY'S RESPONSIBILITIES. 1. The CITY shall make available to the CONSULTANT all the technical data and information that is in the CITY' s possession that is required by the CONSULTANT to com- plete this work, other than that deemed not a public record pursuant to Government Code Section 6250 et seq. or deemed confidential pursuant to Evidence Code Sec- tion 1040. 2. The Director of Airports shall act as the CITY' s repre- sentative in matters of this Agreement. !! 3 . The CITY shall advise, coordinate, advertise, and provide space for any public information meetings and hearings that are a part of the planning process, as well as provide an official transcript of any Public Hearings, if required. 4 . The CITY shall prepare and deliver a "Notice to Pro- ceed" to CONSULTANT. j� C. FAA GRANT CONTINGENCY. It is understood that the CITY has filed a request with the FAA to be awarded a grant for the purpose of preparing a Master Plan for the Redding Municipal Airport. This Agreement is contin- gent upon FAA issuance and CITY acceptance of the FAA grant Therefore, this Agreement shall not be binding upon the CITY nor shall any liability attach to the CITY until such time as the FAA awards the subject grant and the grant is accepted by the CITY. D. ADDITIONAL SERVICES. Any services beyond those outlined in the SCOPE OF WORK shall be undertaken on a time-and-expense basis as directed in writing by the CITY' s designated representative utilizing the -2- CONSULTANT' s hourly g billin rates as set forth in the cost break- down of the SCOPE OF WORK agreed upon in writing by CITY and CONSULTANT and as depicted in Exhibit B attached hereto and incorporated herein by reference. Any significant change in the SCOPE OF WORK resulting from requirements of the CITY or any review agencies needed for this project will require negotiation of an amendment in writing to this Agreement. E. TIME OF COMPLETION. A Draft Airport Master Plan will be presented to the CITY and the FAA for review and comment within an agreed upon time from the CITY' s issuance of the "Notice to Proceed. " Said period of time shall be established jointly by the CITY and CONSULTANT at the time the "Notice to Proceed" is issued. Delays in securing data or approvals that are beyond the CONSULTANT' s control as identified by the CONSULTANT and determined by the CITY shall extend the contract time by a like amount. F. CONSULTANT'S COMPENSATION. The CITY shall pay the CONSULTANT for the services set forth ' in Paragraph A herein a fixed fee of One Hundred Forty-four Thousand Three Hundred and Fourteen Dollars ($144,314.00) utiliz- ing the CONSULTANT' s hourly billing rates as set forth in the !, SCOPE OF WORK. Said CONSULTANT' s fee shall be full compensation to the CONSULTANT for faithful performance and completion of all services set forth in this Agreement. i G. METHOD OF PAYMENT. Partial payments shall be made to the CONSULTANT by the CITY j on a monthly basis in accordance with the CONSULTANT' s estimate of i the percentage of completion of work described in the SCOPE OF WORK. This estimate is subject to approval by the Director of ! -3- �I i I Airports. The payment shall be made within twenty ( 20 ) days of receipt of the CONSULTANT' s invoice. H. TERMINATION. This Agreement may be terminated by the CITY by seven (7 ) days ' written notice. If this Agreement is so terminated, CONSUL- I TANT shall be paid as provided under Paragraph G for all services Ij rendered and expenses incurred to the date of receipt of notice of termination. I. ASSIGNMENT AND SUBCONTRACT. It is expressly understood that the CONSULTANT intends to obtain the services of the following subcontractor in connection with the project: Price-Waterhouse, who may provide financial analyses and plan implementation services. The CONSULTANT shall not assign any other rights or duties under this Agreement, which have a value of Five Thousand Dollars ii ( $5,000.00) or more, to a third party without prior written consent of the CITY. Any such assignment shall not cause the CONSULTANT' s compensation to increase unless agreed to as outlined in Paragraph D above. All subcontracts shall contain the provi- sions specified in Paragraph N. J. OWNERSHIP OF DOCUMENTS. The CITY shall be the owner of and shall be entitled to ,i possession of any plans, copies of correspondence, or other perti- nent data and information gathered or prepared by the CONSULTANT prior to termination of this Agreement by the CITY or upon comple- tion of the work pursuant to this Agreement. The CONSULTANT agrees that the CITY, the FAA, and the Comptroller General of the United States will have access to any books, documents, papers, -4- i i and records that are directly pertinent to a specific grant program, for the purpose of making audits, examinations , excerpts, and transcriptions. R. FEDERAL OBLIGATION. It is understood by the CITY and the CONSULTANT that the FAA 1 is not a party to this Agreement and will not be responsible for ,I costs except as should be agreed upon by the CITY and the FAA under a Grant Agreement for the "AIRPORT MASTER PLAN UPDATE, REDDING MUNICIPAL AIRPORT. " L. CERTIFICATION OF CONSULTANT. The CITY and the CONSULTANT hereby certify that the CONSUL- TANT has not been required, directly or indirectly, as an express or implied condition in connection with obtaining or carrying out this Agreement to: ii 1 . Employ or retain, or agree to employ or retain, any firm or persons. 2. Pay, or agree to pay, to any firm, person, or organiza- tion, any fee, contribution, donation, or consideration of any kind. M. COMPLIANCE WITH APPLICABLE LAWS. ii The CONSULTANT shall comply with any and all Federal, State, '1 and local laws affecting the services covered by this Agreement. 'I N. FEDERAL REQUIRIIMENTS. During the performance of this Agreement, the CONSULTANT, for itself, its assignees and successors in interest agrees as follows: -5- 1. Compliance with Regulations. The CONSULTANT shall comply with the Regulations relative to nondiscrimina- tion in Federally assisted programs of the Department of Transportation (hereinafter called "DOT" ) Title 49 , Code of Federal Regulations, Part 21, as they may be amended from time to time (hereinafter referred to as the "Regulations" ) which are herein incorporated by reference and made a part of this Agreement. 2. Nondiscrimination. The CONSULTANT, with regard to the work performed by it during the Agreement, shall not i discriminate on the grounds of race, color, or national origin in the selection and retention of subcontrac- tors, including procurements of materials and leases of equipment. The CONSULTANT shall not participate either directly or indirectly in the discrimination prohibited by Section 21 .5 of the Regulations, including employ- ment practices when the Agreement covers a program set I� forth in Appendix B of the Regulations. 3 . Solicitations for Subcontracts, Including Procurements 'I of Materials and Equipment. In all solicitations either by competitive bidding or negotiation made by the CONSULTANT for work to be performed under a subcon- tract, including procurements of materials or leases of equipment, each potential subcontractor or supplier !I shall be notified by the CONSULTANT of the CONSULTANT' s obligations under this Agreement and the Regulations relative to nondiscrimination on the grounds of race, 1 color, or national origin. 4. Information and Reports. The CONSULTANT shall provide all information and reports required by the Regulations or directives issued pursuant thereto and shall permit i� 'i -6- access to its books, records, accounts, other sources of information, and its facilities as may be determined by the CITY, the FAA, or the Comptroller General of the United States to be pertinent to ascertain compliance with such Regulations, orders, and instructions. Where anv information required of the CONSULTANT is in the exclusive possession of another who fails or refuses to furnish this information, the CONSULTANT shall so certify to the CITY or the FAA, as appropriate, and shall set forth what efforts it has made to obtain the information. The CONSULTANT shall maintain all re- quired records for three ( 3 ) years after the CITY makes final payment and all other pending matters are closed. 5 . Sanctions for Noncompliance. In the event of the CONSULTANT' s noncompliance with the nondiscrimination provisions of this Agreement, the CITY shall impose such contract sanctions as either it or the FAA may determine to be appropriate, including, but not limited to: (a) Withholding of payments to the CONSULTANT under this Agreement until the CONSULTANT complies; and/or (b) Cancellation, termination, or suspension of the Agreement, in whole or in part. 11 6. Incorporation of Provisions. The CONSULTANT shall include the provisions of Paragraphs N( 1) through N( 5) above in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Regulations or directives issued pursuant thereto. The CONSULTANT shall take such action with respect to any subcontract or procurement as the CITY or the FAA may -7- i direct as a means of enforcing such provisions includ- ing sanctions for noncompliance. Provided, however, that in the event the CONSULTANT becomes involved in, or is threatened with, litigation with the subcontrac- tor or supplier as a result of such direction, the CONSULTANT may request the CITY to enter into such litigation to protect the interests of the CITY and, in addition, the CONSULTANT may request the United States to enter into such litigation to protect the interests of the United States. Failure of CITY to join in I litigation shall not be a breach by the CITY of this Agreement. I 7. DBE Obligation. The CONSULTANT agrees to ensure that disadvantaged business enterprises as defined in 49 CFR Part 23 have the maximum opportunity to participate in the performance of contracts and subcontracts financed in whole or in part with FAA or CITY funds provided under this Agreement. In this regard, the CONSULTANT shall take all necessary and reasonable steps in accor- dance with 49 CFR Part 23 to ensure that disadvantaged business enterprises have the maximum opportunity to compete for and perform contracts. The CONSULTANT shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of DOT-assisted contracts. 8. Foreign Market Restrictions. The CONSULTANT agrees it will not allow funds provided under this Agreement to be used to fund any project which uses any product or service of a foreign country during the period in which such foreign country is listed by the United States Trade Representative as denying fair and equitable i I i I -8- I market opportunities for products and suppliers of the United States in procurement and construction. i O. REMEDIES FOR BREACH OF AGRF194ENT BY CONSULTANT. In the event CONSULTANT breaches any provisions of this Agreement and fails to commence the cure of such breach within seven ( 7 ) days following written notice from CITY or thereafter fails to diligently prosecute such cure to completion, CITY shall have the right to suspend this Agreement for a reasonable time I pending the cure or other resolution of such breach, or to terminate this Agreement as provided herein, or to pursue all other rights and remedies available by law, including but not limited to an action for damages for breach of contract. The damages for which CONSULTANT shall be liable shall include all costs incurred by CITY to complete this Agreement to the extent such costs exceed the maximum amount payable to CONSULTANT. P. CONSULTANT'S LIABILITY. The CONSULTANT shall indemnify and hold the CITY, its officers, officials, agents, employees, and volunteers harmless J from and defend against any and all claims, damages, liability, or i suits arising from the negligence of the CONSULTANT or any subcon- tractor of CONSULTANT, under this Agreement. Q. HOLD •FSS; INSURANCE. 1. This Agreement is granted upon the express condition that CITY, its officers, officials, agents, employees, and volunteers, shall be free from any and all liabili- ty and claims for damages for personal injury, death, or property damage in any way connected with CONSULTANT' s work, activities, and transportation i required to complete this Agreement, including claims -9- of CONSULTANT, his heirs, executors, administrators, personal representatives, successors, assigns, agents, subcontractors, employees, and customers. CONSULTANT shall indemnify and save harmless CITY, its officers, officials, agents, employees, and volunteers, from any and all liability, loss, cost, or obligation on account I,I of or arising out of any such injury, death, or loss '! caused by the negligence or other legal fault of CON- SULTANT or his heirs, executors, administrators, per- sonal representatives, successors, assigns, agents, subcontractors, employees, and customers. 2. It is specifically understood and agreed as a condition '.i of this Agreement that CONSULTANT shall procure and maintain from a company authorized to do business in the State of California, at his sole cost and expense and at all times during the term of this Agreement, general liability insurance in an amount of not less than One Million Dollars ( $1,000, 000. 00) combined single limits. Said insurance shall be in form and content sufficient and adequate to save CITY, its officers, officials, agents, employees, and volunteers, harmless from any and all claims arising out of CON- SULTANT' s work for the CITY. A certificate and en- dorsements evidencing such insurance shall be approved by the Risk Manager of CITY. 3 . It is further understood and agreed as a condition of this Agreement that CONSULTANT will provide and main- tain statutory workers' compensation insurance on its employees, and employer' s liability with limits of not less than $1 million per occurrence. The Risk Manager of CITY shall be furnished with a Certificate and u -10- I I endorsements evidencing such insurance. CONSULTANT shall also furnish the Risk Manager of CITY with a Certificate and endorsements evidencing that such insurance is held by any and all subcontractors of I CONSULTANT. Both the workers ' compensation and employ- er' s liability shall contain the insurer ' s waiver of subrogation in favor CITY, its officers, officials, agents, employees, and volunteers. 4. Automobile liability shall be maintained for bodily injury (including death) and property damage, with limits of not less than One Million Dollars i ( $1 ,000,000.00 ) combined single limits per occurrence, applicable to all owned, non-owned, and hired vehicles. 5. Any deductibles or self-insured retentions must be declared to and approved by CITY. At the. option of CITY, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects CITY, its officers, officials, agents, employees, and volunteers; or CONSULTANT shall procure a bond guaran- teeing payment of losses and related investigations, claim administration, and defense expenses. 6. The general liability and automobile liability policies are to contain, or be endorsed to contain, at least the following provisions: (a) CITY, its officers, officials, agents, employees, li and volunteers, are to be covered as insured as respects: liability arising out of premises or vehicles owned, occupied, or used by CONSULTANT. U {I The coverage shall contain no special limitations on the scope of protection afforded to CITY, its -11- officers, officials, agents, employees, or volun- teers. (b) CONSULTANT' s insurance coverage shall be primary insurance as respects CITY, its officers, offi- cials, agents, employees, and volunteers. Any j insurance or self-insurance maintained by CONSUL- TANT, its officers, officials, agents, subcon- tractors, employees, or volunteers, shall be excess of CONSULTANT' s insurance and shall not I contribute with it. (c) Any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to CITY, its officers, officials, agents, employees, or volunteers. (d) Coverage shall state that CONSULTANT' s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with resect to the limits of the insurer ' s lia- bility. (e) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled, except after thirty ( 30) days ' prior written notice has been given to CITY. (f) All required insurance policies shall be issued by companies which hold a current policy holder' s alphabetic and financial size category rating of not less than "A: VII" according to the most recent issue of "Best' s Insurance Reports. " -12- I! u II - �j R. CEQA. It has been determined that this matter is categorically '! exempt from the provisions of the California Environmental Quality Act. IN WITNESS WHEREOF, the CITY, by and through its City �f Council, and CONSULTANT, by and through its authorized officer, have made and executed this Agreement as of the day and year first written above. CITY OF R.EDDING By: CHARLIE MOSS, Mayor j HOLES & SHUTT By: y- Corporate Of a er ATTEST: FORM APPROVED: CONNIE STROHMAYER, City Clerk RANDALL A. HAYS, City Attorney !i i' i I -13- I I� PART IV - PROGRAM NARRATIVE Scope of Work Airport Master Plan Update Redding Municipal Airport y 'i Task 1 - Study Definition A. A work scope will be developed describing this study's tasks. An FAA grant application, including supporting documentation to conduct the study, will be prepared. B. Meetings and discussions will be held among the consultant, city staff, the FAA, and others as appropriate to review and confirm goals, work scope, and schedule. The roles of various parties will be identified. i! Task 2 - Data Collection A. Data collected during the previous airport master plan will be updated: 1. Airport activity. 2. Existing facilities. 3. Airspace and navaids. 4. Utilities. 5. Benton facilities. B. A special focus of this study will be its financial analyses, a key inventory element will address the following support data: 1. Financial records, rates and charges, policies, and leases. 2. Financial accounting systems and procedures. 3. Airport's historical financial performance. 4. Five-year capital improvement program. C. Pavement Evaluation 1 . All historical records on pavement construction, repair, and maintenance will Part IV Page 5 iExhibit A be revised. II 2. All major airport pavement surfaces (runways, taxiways, aprons, roads, and auto parking) will be inspected and rated as to condition in the following categories of distress: a. Asphaltic Concrete - Roughness, alligator cracking, rutting, raveling, and block cracking. b. Portland Cement Concrete - Roughness, disintegration, load-associated ,I cracking, non-load-associated cracking, faulting, and spalling. 3. Substantial pavement assessment expertise will be directed toward projecting future pavement-related capital improvement requirements (magnitude and timing) under a variety of future-use scenarios. Task 3 - Activity Forecasts and Capacity Analysis A. Activity Forecasts The most recent forecasts developed for the Airport by the State Division of Aeronautics and the Federal Aviation Administration will be reviewed and evaluated in view of more recent information. The future role of the Airport in the local, state, and national air transportation systems will also be studied and incorporated into the activity forecast. The short-, intermediate-, and long-range (years 1995, 2005, and 2015) aviation demand forecasts will include: 1. Enplaned passengers, cargo, and small package. 2. Busy-hour operations (IFR and VFR). 3. Based aircraft (including mix). 4. Average daily surface vehicular activity. B. Capacity Analyses set forth in the previous Airport Master Plan will be updates: 1. Airfield 2. Roadway System 3. Passenger Terminal Building 4. Aircraft Storage Part IV Page 6 Exhibit A (Cont 'd) u I Task 4 - Facility Requirements A. Airfield Requirements Airfield requirements will be determined in accordance with applicable FAA standards and other planning criteria. 1. Runways: Strength, width, clearances, clear zones, approach slopes, location, and alignment. ,I 2. Taxiways: Width, clearances, and location. 3. Lighting, Marking, and Signage: Approaches, runways, and taxiways. 4. Navaids and ATC: Type and location. 1 5. Helicopter Landing Areas: Size, location, and approaches. B. Terminal Area Requirements Existing terminal area facilities will be reviewed in terms of present and forecast demands on these facilities. A determination will then be made of air terminal area requirements necessary through the study period. 1. Terminal square footage. 2. Automobile parking. 3. Airline apron. 4. Curb frontage. C. General Aviation Requirements These facilities required specifically to accommodate general aviation activity through the forecast period will be determined. The evaluation will include: 1. Based aircraft tiedowns. 2. Transient aircraft parking (tiedowns, large-aircraft apron, and helicopters). b ,i 3. Hangar storage (including corporate). 4. Fixed base operator acreage. 5. Special facilities (e.g., fire attack aircraft base and helicopter facilities). Part IV Page 7 Exhibit A (Cont'd) 6. Fuel storage. D. Airport Access Requirements ' Existing and proposed airport access roads and on-airport parking facilities will be reviewed in conjunction with functional area requirements presented above. Those facilities necessary to serve the forecast demands will then be identified. Task 5 - Impact of Benton on Redding Municipal A. Benton Airpark's role in the City's general aviation system will be updated. y B. The feasibility of positioning Benton Airpark as a successful NPIAS candidate will be determined. C. Benton's capacities (airfield, storage, environmental) and their impact on capacities at Redding Municipal will be updated. D. Capital improvement requirements will be identified, prioritized, and integrated with requirements at Redding Municipal. Task 6 - Airport Plans A. Airport Layout Plan A new Airport Layout Plan (ALP) drawing will be prepared, including a location map, a vicinity map, wind data, and basic data tables. The ALP will be prepared in accordance with Federal Aviation Administration Standards established in Advisory Circular 150/5050-6A, "Airport Master Plans". The ALP will be prepared in CAD format; both a hard copy and an electronic drawing file will be submitted to the City. ;j B. On-Airport Land Use Plan The On-Airport Land Use Plan will show existing and recommended future land use on all airport property. This plan will illustrate the areas set aside for the terminal area complex, general aviation development (tiedowns, hangars, FBO's), commercial/industrial sites, airport access, buffer zones, recreational sites, the location of navigational aids, irrigation, and other improvements that are recommended. l C. Terminal and Building Area Plan Building area plans will be developed that will include dimensions of facilities within terminal and general aviation areas and schematic drawings adequate for the delineation of basic flows of aircraft, passengers, and vehicles. Those Part IV Page 8 Exhibit A (Cont'd) facilities that will'be included in this plan are: 1. Terminal building. 2. Automobile parking. 3. Fixed base operations. 4. Aircraft tiedowns. 5. T-hangars. i 6. Corporate hangars. 7. Fire attack aircraft base. 8. Access and circulation roads. 9. Fueling facilities. D. Airspace i A current Airspace Plan, reflecting the planned configuration and criteria in Federal Aviation Regulations (FAR), Part 77, "Objects Affecting Navigable Airspace", will be generated for the Airport. The adequacy of existing approach and clear zones will be assessed and a ,I ppropriate recommendations made. Task 7 - Environmental Evaluation A. An Addendum to the Redding Municipal Airport Noise Management Plan and Master Plan Supplemental E/R will be prepared. The Addendum will focus on potential impacts to protected species and wetlands which might occur if the east side of the Airport is developed. A biological reconnaissance of the east side development area will be performed. This reconnaissance will include all of the eastside building area except the area assisted with the proposed parallel runway. No other field surveys will be performed. B. If protected species or wetlands are identified, there is the potential that additional field surveys may be required. These may, in turn, trigger the need for a more extensive environmental document than the proposed addendum (e.g., a supplemental EIR). Should these additional services be required, an 'I amendment to the scope of work and budget will be required. C. INM noise contours will be run for the current level of activity at the long-range forecast. Part IV Page 9 j Exhibit A (Cont d) i Task 8 - Financial Plan i A. Develop Base Financial Proiections 1. Cost Allocation Concepts a. Identify candidate direct and indirect cost centers. {, b. Discuss with airport staff bases for allocating operating expenses to cost � centers. i c. Identify alternative approaches for allocating indirect operating expenses. d. Assign/allocate budgeted revenues and operating expenses to cost centers. e. Analyze data regarding historical capital project cost and grant-in-aid to 'I develop basis for allocating historical debt service to cost centers. 2. Base Financial Projections (Electronic Spreadsheet Model) a. Analyze historical revenues and operating expenses. Review provisions of existing leases and contracts. Review current operating budget. b. Incorporate readily available air traffic projections (enplanements, operations, landed weights) into the financial analysis. 'i c. Estimate non-airline revenues and operating expenses by cost center. Develop cost center operating statements. a; d. Project bond sizing requirements (sources and uses of funds) to finance the proposed five-year capital improvement program. Explore alternatives based on extent of grants-in-aid and the sources of funding. Calculate resulting debt service requirements based on assumed interest rates and debt structure. Allocate projected debt service to cost centers based on project costs. e. Estimate airline rates and charges and overall cash flow and debt service coverage. 3. Initial Review of Non-Airline Rates and Charges a. Perform an initial review of non-airline rates and charges. Based on industry experience and acceptable levels, identify alternative '! policies/approaches for establishing other tenant rates and charges. it Part IV Page 10 Exhibit A (cont'd) h i . b. Identify the potential positive and negative impacts of changes in general ' aviation hangar and tiedown fees, fuel flowage fees, and ground lease j provisions. I c. Conduct an industry survey (by telephone) of rates and charges methodologies of similar general aviation and municipal airports in California. d. Develop recommended methodologies, approaches, and methods. B. Analyze Alternatives 1. Calculate airline rental rates and landing fees under alternative rate-making concepts such as cost center residual, compensatory, commercial compensatory, or a potential hybrid. 2. Calculate effect of changes in rate-making concepts on individual airlines by applying calculated rates to projections of individual airline leased space and landed weight. 3. Identify any issues that may merge with respect to the allocation of costs among airlines if concepts are modified. Task 9 - Implementation Plan A. Review and Update Capital Improvement Plan 1. Based on capital requirements and timing, determine general preliminary funding requirements for a target year (10- to 20-year period). 'i P 2. Develop annual construction funding requirements based on construction cost estimates, construction drawdown schedule, and an escalation rate. B. Develoo Preliminary Financing Plan 1. Identify potential funding sources including federal, state, and local grants/loans and Passenger Facility Charges (PFC's). The funding amounts will be proxied based on historical funding levels, formulas, Federal Aviation Administration regulations, and other available sources of information. 2. Develop a hypothetical financing plan. The plan could include grants, general airport revenue bonds, special facility financing, PFC's, credit enhancement, etc. It will reflect market interest rates, capitalized interest requirements, debt service reserve funds, and issuance costs; and will also reflect governing legal provisions, instruments, or charters. The plan could also include innovative financing techniques. Part IV Page 11 it Exhibit A (Cont'd) �I C. Estimate Annual Operating Costs 1. Identify and quantify the most significant determinants of operating costs, including physical variables (e.g., terminal square footage) and activity variables (e.g., enplanement levels) incorporating the results of Task 3. 2. Estimate unit operating costs for a target-planning year (e.g., per terminal square foot) based on historical experience at the Airport and other airports undergoing similar capital improvement programs. This task will also draw on the methodology used in Task 3. 3. Multiply physical and activity unit estimates by unit costs to determine expected costs with those experienced presently at the airports. D. Estimate Non-Airline Revenues 1. Evaluate traditional non-airline revenue sources, which could include concessions, parking, car rentals, commercial vehicles, other commercial (industrial) property development, general aviation, fixed base operators, fuel flowage, and interest income. This task will draw on the results of Task 3. 2. Analyze potential increases in other non-airline revenue sources. 3. Compare the potential revenues with current revenues. 4. Project revenues for a target-planning year. The methodology used to determine these projections also will draw on Task 3. E. Calculate the Airline Cost per Enplaned Passenger 1. Quantify annual expenditures beyond debt service and operating costs. These expenditures, which are often governed by airline lease agreements and bond indentures, could include contributions to various reserve and operating funds (repayment of loans), and the funding of debt service coverage. ,i 2. Calculate the annual revenue requirement to be recovered through landing fees and terminal rentals. 3. Determine the airline cost per enplaned passenger by subcontracting non- airline revenues from the revenue requirement (for an appropriate year) and dividing by the expected number of passengers. This calculation would reflect the Airport's cost center structure and rates and charges approach. 4. Compare the cost per enplaned passenger to existing levels at the Airport and proposed levels at airports with similar capital improvement programs. Part IV Page 12 Exhibit A (Cont'd) 'o 5. If the cost per enplaned passenger exceeds levels at comparable airports, calculate the additional amount of funding sources or non-airline revenues that would be needed to reduce the cost per enplaned passenger to a comparable level. F. Additional Financial Analysis 1. Analyze the sensitivity of various assumptions in the analysis, including: operating cost and revenue projections, interest rates, sources of funding for financing, traffic growth rates, project costs, non-airline revenues, etc. Quantify the effects of changes in these assumptions on overall project feasibility. I 2. Quantify other indicators of financial feasibility (if applicable), including debt per passenger, debt ratio, debt service coverage, interest coverage, debt service safety margin, revenue per enplaned passenger, operating ratio, gross margin, net margin, traffic growth rate, etc. ii Task 10 - General Services A. Presentation to City Council. B. Two presentations to Airport Commission. C. Coordination meetings with City staff, FAA, and CALTRANS. D. Workshops with City staff. E. Prepare interim reports and working papers (12 copies). F. Prepare and reproduce Draft Airport Master Plan Update (40 copies). G. Prepare and reproduce Adopted Airport Master Plan Update (25 copies). H. Prepare monthly status reports. Part IV Page 13 Exhibit A (End) COST BREAKDOWN Airport Master Plan Update Redding Municipal Airport i I TASK SUMMARY Task 1 Study Definition 2,816 Task 2 Data Collection 16,152 Task 3 Activity Forecasts and Capacity 4,760 Task 4 Facility Requirements 16,520 Task 5 Impact of Benton on Municipal 5,048 Task 6 Airport Plans 27,008 Task 7 Environmental Evaluation 12,622 Task 8 Financial Plan 17,796 Task 9 Implementation Plan 16,984 Task 10 General Services 18,648 Expenses 5,960 TOTAL 144,314 i TASK DETAIL Task 1 - Study Definition Principal 16 hrs @ 114.00 1,824 Senior Planner 12 hrs @ 70.00 840 Clerical 4 hrs @ 38.00 152 TOTAL 2,816 Task 2 - Data Collection i Principal 32 hrs @ 114.00 3,648 Project Partner (PW) 6 hrs @ 204.00 1,224 Manager (PW) 8 hrs @ 162.00 1,296 '! Senior Planner 48 hrs @ 70.00 3,360 j Engineer III 40 hrs @ 72.00 2,880 Staff Consultant (PW) 24 hrs @ 64.00 1,536 Planner II 16 hrs @ 48.00 768 Graphics Technician 8 hrs @ 52.00 416 Graphics Coordinator 8 hrs @ 52.00 416 Clerical 16 hrs @ 38.00 608 TOTAL 16,152 i Exhibit B Part IV Page 14 Task 3 - Activity Forecasts and Capacity Analysis Principal 24 hrs @ 114.00 2,736 Senior Planner 16 hrs @ 70.00 1,120 Planner H 8 hrs @ 48.00 384 Graphics Coordinator 8 hrs @ 46.00 368 Clerical 4 hrs @ 38.00 152 TOTAL 4,760 Task 4 - Facility Requirements Principal 36 hrs @ 114.00 4,104 Senior Planner 96 hrs @ 70.00 6,720 Engineer III 32 hrs @ 72.00 2,304 Planner II 48 hrs @ 48.00 2,304 Graphics Technician 16 hrs @ 52.00 832 Clerical 8 hrs @ 32.00 256 TOTAL 16,520 Task 5 - Impact of Benton on Municipal Principal 12 hrs @ 114.00 1,368 Senior Planner 32 hrs @ 70.00 2,240 Planner II 16 hrs @ 48.00 768 Graphics Technician 8 hrs@ 52.00 416 'I Clerical 8 hrs @ 32.00 256 TOTAL - i� 5,048 Task 6 - Airport Plans Principal 48 hrs @ 114.00 5,472 Senior Planner 120 hrs @ 70.00 8,400 Engineer III 16 hrs @ 72.00 1,152 ri Planner 11 48 hrs @ 48.00 2,304 Graphics Technician 160 hrs @ " 52.00 8,320 CAAD Station 136 hrs @ 10.00 1.360 TOTAL 27,008 Task 7 - Environmental Evaluation I Principal 8 hrs @ 114.00 912 Senior Planner 48 hrs @ 70.00 3,360 ii Graphics Coordinator 16 hrs @ 46.00 736 Clerical 8 hrs @ 38.00 304 Exhibit B 'i Part N Page 15 �I • • i Biological Reconnaissance 7310 TOTAL 12,622 I i Task 8 - Financial Plan Principal 4 hrs @ 114.00 456 Project Partner (PW) 12 hrs @ 204.00 2,448 Manager (PW) 14 hrs @ 162.00 2,268 Senior Consultant 24 hrs @ 80.00 1,920 Senior Consultant (PW) 64 firs @ 81.00 5,184 Staff Consultant (PW) 72 firs @ 64.00 4,608 Clerical 24 hrs @ 38.00 912 TOTAL 179796 Task 9 - Implementation Plan Principal 8 hrs @ 114.00 912 Project Partner (PW) 16 hrs @ 204.00 3,264 Manager (PW) 16 hrs @ 162.00 2,592 Senior Consultant 16 hrs @ 80.00 1,280 Senior Consultant (PW) 56 firs @ 81.00 4,536 Staff Consultant (PW) 64 hrs @ 64.00 4,096 Clerical 8 firs @ 38.00 304 I' TOTAL 16,984 Task 10 - General Services Principal 44 hrs @ 114.00 5,016 Project Partner (P.W) 6 hrs @ 204.00 1,224 Manager (PW) 12 hrs @ 162.00 1,944 Senior Planner 64 hrs @ 70.00 4,480 Graphics Coordinator 64 hrs @ 46.00 2,944 Clerical 80 firs @ 38.00 3,040 TOTAL 18,648 Expenses Travel 3,100 Phone, fax, reproduction, postage 2,860 TOTAL 5,960 Exhibit B (End) Part IV Page 16 I