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HomeMy WebLinkAbout _ 4.2(a)--Budget Amendment - Airport CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Approve and authorize the following for the City of Redding Airports Division: (1) Adopt Resolution approving the 16th Amendment to City Budget Resolution No. 2023- 060 appropriating revenues in the amount of $199,660 for purchase of a boarding ramp and an air service development contract from proceeds of the land sale located at 6550 Lockheed Drive, Redding, CA 96002; and (2) Authorize the City Manager, or designee, to execute all documents necessary to appropriate the remaining $64,168.50 from the land sale and to execute any agreements necessary to implement projects funded through these appropriations. Fiscal Impact Approval of this item will provide $199,660.00 for air service development efforts and delegate authority to appropriate the remaining $64,168.50 from the land sale for airport operational and compliance needs. Alternative Action City Council may decline to appropriate land sale revenues and provide alternative direction to staff. Background/Analysis The City of Redding (City) Airports Division sold property at 6550 Lockheed Drive for $263,828.50 generating unbudgeted revenue for the Airports Division. Proceeds from the sale will enable the Airports Division to proceed with efforts in air service development which is expected to increase the competitivity of the Redding Regional Airport (RDD) in attracting new air service. History has shown that when air service thrives, additional revenue in the form of car rental and car parking concessions, correspondingly increase. These additional funds will allow the Airports Division to carry out various operational and air service development strategies. MEETING DATE: November 7, 2023 ITEM NO. 4.2(a)-- FROM: ***APPROVED BY*** sbade@cityofredding.org btippin@cityofredding.org SUBJECT: 4.2(a) - Budget Amendment - Airport Steve Bade, Assistant City Manager Report to Redding City Council November 1, 2023 Re: 4.2(a)--Budget Amendment - Airport Page 2 The Airports Division seeks to utilize funds from the land sale proceeds as follows: • $94,660 – The Airports Division has been utilizing Mead & Hunt as the air service development/marketing consultant. These proceeds would be used to continue these consulting services; • $105,000 – The Airports Division is requesting funding to purchase a boarding ramp that would support air service development. Procuring right-sized and ready-for-use ground equipment is an important tool to market RDD to various air carriers interested in operating out of RDD. This equipment would accommodate new types of jet aircraft making the City a more competitive market for air service; and • $64,000 – These funds would be used to support a variety of compliance, operational, security, and safety needs at RDD and Benton Field. Environmental Review This activity is not a project as defined by the California Environmental Quality Act or the National Environmental Policy Act. No further action is required. Council Priority/City Manager Goals • Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.” • Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.” Attachments ^Resolution Resolution No. 2023 - ____________ A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 16TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2023-060 APPROPRIATING $199,660 FOR THE PURCHASE OF A BOARDING RAMP AND AN AIR SERVICE DEVELOPMENT CONTRACT FOR FISCAL YEAR 2023-2024. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING THAT Budget Resolution No. 2023-060 be and is hereby amended as follows: FUND DIVISION DESCRIPTION INCREASE DECREASE 201 7101 Redding Regional Airport $199,660 THAT account titles and numbers requiring adjustments by this Resolution are as follows: USE SOURCE OF FUNDS OF FUNDS Decrease (Increase) Fund Balance 211-7101-3741007-00000 Sale of Property 199,660$ Increase Expenditures 201-7101-7500002-00000 Equipment - Equipment 105,000$ 201-7101-5037550-00000 Air Service Development 94,660$ Total 199,660$ 199,660$ THAT the purpose is to appropriate $199,660 for the purchase of a boarding ramp and an air service development contract for fiscal year 2023-2024. I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the ______day of __________, 2023 and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: MICHAEL DACQUISTO, Mayor ATTEST: FORM APPROVAL: SHARLENE TIPTON, City Clerk BARRY E. DeWALT, City Attorney