GEU Rates and Fees Study
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Glendale Municipal Airport Rates and Fees Survey Analysis Prepared For: City of Glendale, Glendale Municipal Airport Glendale, Arizona October, 2022 TABLE OF CONTENTS INTRODUCTION ................................................................................................................... 1 SECTION 1 – AIRPORT MARKET PROFILE ...................................................................... 2 SECTION 2 – COMPARABLE AIRPORTS ............................................................................ 3 SECTION 3 – SUMMARY OF KEY FINDINGS .................................................................... 4 OPEN TIE-DOWNS ....................................................................................................................................................................... 4 HELICOPTERS ................................................................................................................................................................................ 7 SHADE HANGARS ......................................................................................................................................................................... 8 TEMPORARY OPEN RAMP ........................................................................................................................................................ 8 SPECIAL OPERATIONS ............................................................................................................................................................... 9 FUELING ......................................................................................................................................................................................... 10 LANDING FEES ............................................................................................................................................................................ 11 AIRPORT LABOR AND ADMINISTRATIVE RATES ...................................................................................................... 11 IDENTIFICATION CARDS ....................................................................................................................................................... 12 OFFICE RENTALS AND LEASES .......................................................................................................................................... 13 LAND LEASES AND HANGAR RENTS............................................................................................................................... 13 SECTION 4 – OBSERVATIONS AND RECOMMENDATIONS ...................................... 15 APPENDIX A – COMPARABLE AIRPORTS FOR SURVEY ............................................ 16 APPENDIX B - RATES AND FEES SURVEY .................................................................... 18 1 GLENDALE MUNICIPAL AIRPORT 2022 AIRPORTS RATES AND FEES SURVEY INTRODUCTION In May of 2022, a Rates and Fees Survey was initiated to determine if the Glendale Municipal Airport’s (GEU) current policies are competitively established and adequate. This survey reviews existing airport rates and compares the results of these rates to airports similar to that of GEU. It identifies GEU’s overall market position, ascertains the adequacy of the airport’s fee structure and policy, and recommends where improvements may need to be considered. The key objective of this survey is to analyze rates at comparable airports in the region, providing a “snapshot” of GEU from similar airports. It allows GEU to gauge its existing lease rates and aids with the establishment of future rates within the context of the airport’s market environment. It should be stated that a rates and fees analysis does not supplement a property appraisal for specific lease properties and/or negotiations. The goals set forth for this analysis were accomplished through the following steps: 1. The existing Rates and Fees structure from the Glendale Municipal Airport, were obtained through meetings with the Airport Administrator. In addition, historic documents and records of process changes were reviewed and incorporated into the Survey. 2. Research was conducted to establish a reasonable list of comparable airports to be used for the survey effort. The selected airports for the survey were collected and a data sheet was developed to use as a comparative analysis for incorporation into the survey (Appendix A). The Airport Administrator approved the selected airports for the Survey. 3. Numerous rates and fees for a wide range of airport services were compared to current and potential GEU operations from the selected comparative airports (Appendix B), and 4. A thorough market research and historical data collection was initiated to identify trends in market changes in the survey airports rates and fees, from all sources of income potential at an airport including, but not limited to, lease rates, landing fees, operational fees, and specialty operations. 2 SECTION 1 – AIRPORT MARKET PROFILE The Glendale Municipal Airport is located seven (7) miles west of the government center of the City. The Airport is home to many businesses and more than 474 privately owned general aviation aircraft. Meetings with economic development and planning officials from the City of Glendale indicates that areas around the airport are currently planned to include industrial and commercial uses that can take advantage of the airport facilities and help establish a major business and employment center around the airport. The Glendale Municipal Airport (GEU) is classified as a general aviation reliever facility by the Federal Aviation Administration (FAA). The Airport is a designated reliever for Phoenix Sky Harbor International Airport (PHX), which is 18 miles east. The Airport site encompasses approximately 477 acres of land and resides at an elevation of 1,071 feet above mean sea level (MSL). The Airport's single runway is 7,150 feet in length and 100 feet wide. In 2021, the Glendale Municipal Airport reported a total of 79,343 aircraft operations. The existing runway (oriented at 10/190 degrees magnetic) has a 1,001-foot displaced landing threshold on Runway 19, and a 701-foot displaced landing threshold on Runway 1. The Glendale Municipal Airport is operated daily by a full-time Airport Administrator who reports to the City of Glendale Transportation Director and the City Manager, Mayor, and Council. There are six additional full‐time employees including airfield operations and a management assistant. A seven‐member Aviation Advisory Commission advise the City Council on maintenance and operation of the Glendale Municipal Airport and its role in statewide air transportation. The Commission typically meets once a month to discuss airport matters. For many years after its opening in 1987, the airport continued to grow slowly and organically, catering to aircraft storage and flight schools. With the construction of the Cardinals Stadium, which has subsequently been renamed State Farm Stadium, the City of Glendale hosted the Super Bowl in 2008, 2015, and will host again in 2023. During the past Super Bowl’s, the Airport had an influx of corporate jet traffic during these events. These events showed what the Airport’s future held, as many corporate jets operators utilized the airport’s proximity to the stadium. In addition, the development of the Westgate Entertainment District, which includes City Center, State Farm Stadium, and a 320-room Renaissance Hotel and Conference Center, has enabled the Airport to provide flight access for the entertainment, sports, and business customers. Glendale Municipal Airport is already a thriving GA facility supporting both small private general aviation aircraft and larger corporate aircraft entities and associated services. A full line of FBO and maintenance support services, on site Airport Traffic Control facility, and access to the greater Phoenix Metropolitan area make it attractive to future corporate business development. Glendale Municipal Airport 3 SECTION 2 – COMPARABLE AIRPORTS The selection of comparable airports for a survey of current income mechanisms is the most important activity of this type of survey. This task involves the collection and review of rates and fees for similar services and operations at comparable airports to GEU. Not all airports offer the same types of services as GEU, so criteria was developed to determine a list of potential comparable airports that offered similar services in many areas. The following broad criteria were used to develop the list of potential comparable airports: • Geographic location of survey airports, with preference given to those airports within the State of Arizona, and/or a potential competitor to GEU services. • Airports with similar size and scope in terms of use, ownership, and type of services; and • Similar type of activity, including flight training, based aircraft levels, corporate activity, and development status. Based upon the criteria identified above, the comparable airports selected for review are listed in the Table 1 below. While the airports selected are not necessarily comparable across all criteria categories, the ten (10) airports selected provide a diverse cross representation of activity at GEU and provide the best results for this analysis. This analysis seeks to identify other regional airports that have elements of the same mission and operational basis as Glendale Municipal Airport, including general aviation activities and facilities, corporate operations and associated development, and a service base or potential capable of supporting those operations. Table 1 Regional Airport Comparisons Airport Description Glendale Municipal Airport, AZ Glendale is a General Aviation facility with Reliever capability, and a moderate GA aircraft population. St. George Municipal Airport, Utah St. George is a Commercial Service facility, but the majority of its activity is GA and Corporate Business activities. Scottsdale Airport, AZ Scottsdale Airport is a major GA Reliever and Corporate Services facility offering a wide range of services. Page Municipal Airport, AZ Page Municipal Airport is a Commercial Service Airport (Part 139) with the bulk of its aviation activities centered on GA and Corporate Business. Mesa Falcon Field Airport, AZ Mesa Falcon Field Airport is a major GA Reliever facility that also accommodates Corporate Business activities. Chandler Municipal Airport, AZ Chandler is a major GA Reliever and Corporate Services facility offering a wide range of services. Sedona Airport, AZ Sedona is a GA facility that accommodates Corporate Business and a small GA aircraft population. Buckeye Municipal Airport, AZ Buckeye is a GA facility that accommodates Corporate Business and a moderate GA aircraft population. Marana Regional Airport, AZ Marana Regional Airport is a Reliever with major GA and Corporate Business facility offering a wide range of services. Phoenix Goodyear Airport, AZ Goodyear is a General Aviation facility, with emphasis towards MROs, large aircraft refurbishing, and corporate aircraft and services. Phoenix Deer Valley Airport, AZ Phoenix Deer Valley is a major GA Reliever and Corporate Services facility offering a wide range of services 4 SECTION 3 – SUMMARY OF KEY FINDINGS The purpose of an airport Rates and Fees survey is to establish an informational baseline that can be utilized for adjusting and/or expanding its own revenue sources while remaining competitive with the regional market. Therefore, this survey seeks to identify ten other regional airports in Arizona and Utah that have a comparable role similar in size and function to Glendale’s, particularly in the areas of General Aviation and corporate business aircraft, and associated services. Specifically, each airport chosen to participate in this survey was evaluated for number and types of based aircraft, FBO’s, MRO’s and other associated maintenance or technical services present on the field, availability of leasable facilities and land, and both aeronautical and non-aeronautical general services. If a subject airports overall environment and mission comprised of each of these elements paralleled the current mission of the Glendale Municipal Airport, then it was deemed appropriate to utilize their data in this comparative survey. The following represents the specific categories of the current Glendale Municipal Airport Rates and Fees structure, among others. Data from each of the survey airports was analyzed and correlated to the appropriate fee category for Glendale. The highest and lowest for each category were noted, and an average for all survey airports calculated. Recommendations for any changes were made for each category. OPEN TIE-DOWNS Single Engine Open Tie-Down <12,500 lbs. (Monthly) This category correlates to small single-engine aircraft weighing less than 12,500 pounds. High: $100.00 Sedona Airport Low: $35.00 Scottsdale Airport Average Rate: $50.00 (Across all comparative airports) Current GEU Rate: $40.00 Recommendation: GEU rate is lower than the average. Recommend incremental increase starting at $45.00 to $50.00 over 3 years. Evaluate yearly for impacts. Single Engine Open Tie-Down <12,500 lbs. (Daily) This category correlates to small single-engine aircraft weighing less than 12,500 pounds. High: $20.00 Sedona Airport Low: $5.00 Glendale Municipal Airport Average Rate: $11.33 Current GEU Rate: $5.00 Recommendation: GEU rate low. Recommend increase to $10.00 daily. Twin Engine Open Tie-Down <12,500 lbs. (Monthly) This category correlates to small twin-engine aircraft weighing less than 12,500 pounds. High: $135.00 Sedona Airport Low: $36.00 Buckeye Municipal Average Rate: $61.09 Current GEU Rate: $40.00 Recommendation: GEU rate is low compared to regional norms. Recommend incremental increase starting at $45.00 to $60.00 over 4 years. Evaluate yearly for impacts. 5 Twin Engine Open Tie-Down <12,500 lbs. (Daily) This category correlates to small twin-engine aircraft weighing less than 12,500 pounds. High: $15.00 Scottsdale Airport Low: $6.00 Buckeye Airport Average Rate: $21.20 Current GEU Rate: $9.00 Recommendation: GEU rate low. Recommend an initial increase to at least $15.00 daily. Small Turboprop Open Tie-Down <12,500 lbs. (Monthly) This category correlates to small turboprop aircraft weighing less than 12,500 pounds. High: $250.00 Page Municipal Airport Low: $36.00 Buckeye Municipal Airport Average Rate: $101.98 Current GEU Rate: $40.00 Recommendation: GEU rate low. Recommend incremental increase starting at $45.00 to $60.00 over 2 years. Reevaluate and continue escalation to $100 over next several years. Small Turboprop Open Tie-Down <12,500 lbs. (Daily) This category correlates to small turboprop aircraft weighing less than 12,500 pounds. High: $100.00 Sedona Airport Low: $6.00 Buckeye Municipal Airport Average Rate: $39.28 Current GEU Rate: $34.00 Recommendation: GEU rate low. Airport should consider raising to $50.00 daily. Jet Open Tie-Down <12,500 lbs. (Monthly) This category correlates to small jet aircraft weighing less than 12,500 pounds. High: $3,000.00 Sedona Airport Low: $36.00 Buckeye Airport Average Rate: $611.37 Current GEU Rate: $1,120.00 Recommendation: GEU rate is second highest of survey. Recommend no change. Jet Open Tie-Down <12,500 lbs. (Daily) This category correlates to small jet aircraft weighing less than 12,500 pounds. High: $110.00 Marana Regional Airport Low: $6.00 Buckeye Airport Average Rate: $50.00 Current GEU Rate: $34.00 Recommendation: GEU rate low. Airport should consider raising to $50.00 daily. Aircraft Open Tie-Down 12,500 lbs. to 24,999 lbs. MTOW. (Monthly) This category correlates to larger aircraft with weights between 12,500 and 24,999 lbs. Few comparable airports in this survey employ a similar breakdown. High: $200.00 Marana Regional Airport Low: $40.00 Buckeye Airport Average Rate: $120.00 6 Current GEU Rate: $40.00 Recommendation: GEU is low, recommend increase to 100.00 monthly. Aircraft Open Tie-Down 12,500 lbs. to 24,999 lbs. MTOW (Daily) This category correlates to larger aircraft with weights between 12,500 and 24,999 lbs. One other comparable airport in this survey employs a similar breakdown. High: $35.00 Marana Regional Airport Low: $12.75 Glendale Airport Average Rate: $24.00 Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Aircraft Open Tie-Down 25,000 lbs. to 49,999 lbs. (Monthly) This category correlates to larger aircraft with weights between 25,000 and 49,999 lbs. One other comparable airport in this survey employs a similar breakdown. High: $300.00 Marana Regional Airport Low: None Average Rate: $300.00 Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Aircraft Open Tie-Down 25,000 lbs. to 49,999 lbs. (Daily) This category correlates to larger aircraft with weights between 25,000 and 49,999 lbs. One other comparable airport in this survey employs a similar breakdown. High: $45.00 Marana Regional Airport Low: None Average Rate: $45.00 Current GEU Rate: $12.75 Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Aircraft Open Tie-Down 50,000 lbs. to 99,999 lbs. (Monthly) This category correlates to larger aircraft with weights between 50,000 lbs. to 99,999 lbs. One other comparable airport in this survey employs a similar breakdown. High: $632.00 Marana Regional Airport Low: None Average Rate: $632.00 Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Aircraft Open Tie-Down 50,000 lbs. to 99,999 lbs. (Daily) This category correlates to larger aircraft with weights between 50,000 lbs. to 99,999 lbs. One other comparable airport in this survey employs a similar breakdown. High: $90.00 Marana Regional Airport Low: None Average Rate: $90.00 Current GEU Rate: $12.75 Recommendation: If GEU offers this specific category in the future it should reflect regional norms. 7 Aircraft Open Tie-Down 100,000 lbs. to 200,000 lbs. (Monthly) This category correlates to larger aircraft with weights between 100,000 lbs. to 200,000 lbs. One other comparable airport in this survey employs a similar breakdown. High: $1,250.00 Marana Regional Airport Low: None Average Rate: $1,250.00 Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Aircraft Open Tie-Down 100,000 lbs. to 200,000 lbs. (Daily) This category correlates to larger aircraft with weights between 100,000 lbs. to 200,000 lbs. One other comparable airport in this survey employs a similar breakdown. High: $175.00 Marana Regional Airport Low: None Average Rate: $175.00 Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Aircraft Open Tie-Down Greater Than 200,000 lbs. (Monthly) This category correlates to larger aircraft with weights greater than 200,000 lbs. One other comparable airport in this survey employs a similar breakdown. High: $2,000.00 Marana Regional Airport Low: None Average Rate: $2,000.00 Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Aircraft Open Tie-Down Greater Than 200,000 lbs. (Daily) This category correlates to larger aircraft with weights greater than 200,000 lbs. One other comparable airport in this survey employs a similar breakdown. High: $200.00 Marana Regional Airport Low: None Average Rate: $200.00 Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. HELICOPTERS Helicopter Open Tie-Down <12,500 lbs. (Monthly) This category correlates to small helicopters weighing less than 12,500 pounds. High: $127.00 Mesa Falcon Field Airport Low: $45.00 Buckeye Airport Average Rate: $68.00 Current GEU Rate: $None Recommendation: GEU is low, recommend $75.00 monthly for future. 8 Helicopter Open Tie-Down <12,500 lbs. (Daily) This category correlates to small helicopters weighing less than 12,500 pounds. High: $40.00 Sedona Airport Low: $6.00 Buckeye Airport Average Rate: $9.71 Current GEU Rate: $6.75 Recommendation: GEU is low, recommend increase to 10.00 daily. SHADE HANGARS Shade Hangar <12,500 lbs. (Monthly) This category correlates to small aircraft weighing less than 12,500 pounds utilizing shade hangar. High: $130.00 Chandler Airport Low: $45.00 Buckeye Airport Average Rate: $96.33 Current GEU Rate: Owned by FBO Recommendation: GEU owns no shade hangars currently. TEMPORARY OPEN RAMP Temporary Open Ramp Vehicle Parking with Aircraft; Vehicle up to 20 feet in length (Monthly) No comparable airport data in this survey. This category is combination aircraft/vehicle parking. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Temporary Open Ramp Vehicle Parking with Aircraft; Vehicle up to 20 feet in length (Daily) No comparable airport data in this survey. This category is combination aircraft/vehicle parking. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Temporary Open Ramp Vehicle Parking with Aircraft; Vehicle over 20 feet in length (Monthly) No comparable airport data in this survey. This category is combination aircraft/vehicle parking. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Temporary Open Ramp Vehicle Parking with Aircraft; Vehicle over 20 feet in length (Daily) No comparable airport data in this survey. This category is combination aircraft/vehicle parking. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. 9 Temporary Open Ramp Vehicle Parking with Aircraft; Trailer (Monthly) No comparable airport data in this survey. This category is combination aircraft/trailer parking. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Temporary Open Ramp Vehicle Parking with Aircraft; Trailer (Daily) No comparable airport data in this survey. This category is combination aircraft/trailer parking. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Temporary Open Ramp Vehicle Parking with Aircraft; Fuel Truck (Monthly) No comparable airport data in this survey. This category is combination aircraft/fuel truck parking. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Temporary Open Ramp Vehicle Parking with Aircraft; Fuel Truck (Daily) No comparable airport data in this survey. This category is combination aircraft/fuel truck parking. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. SPECIAL OPERATIONS Parachuting Operations Facility Fee (with airport business facility lease) No comparable data among survey airports. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Commercial Photography Permit (Daily) One other comparable airport in this survey employs a similar breakdown. High: $300.00 Page Municipal Airport Low: $250.00 Marana Regional Airport Average Rate: $275.00 Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. SASO Banner Tow Permit (Annually) Little comparable data among survey airports. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. SASO Aircraft Charter/Taxi/Warbird Flights Permit Little comparable data among survey airports. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. SASO (Banner Towing, Aircraft Maintenance, etc.) 10 This is a SASO permit fee that may be associated with other operating agreements. Such charges are generally set to cover the costs of administration. High: $1,000.00 St George Regional Airport Low: $50.00 Glendale Municipal Airport Average Rate: Rate depends on the nature and association with the operating agreement. Current GEU Rate: $50.00 and operating agreement. Recommendation: GEU rate appears to be appropriate. Review associated costs annually. Temporary Storage Container Parking Short term container parking for temporary storage. Current GEU Rate: Rate not offered. Recommendation: Temporary land use permits. No published rates. Airport Advertising Rates Airport advertising rates and locations. High: $50.00 to $250.00 St George Regional Airport Low: $50.00 to $75.00 Glendale Municipal Airport Current GEU Rate: $50.00 to $75.00 Recommendation: GEU rate appears to be appropriate. Airport Long Term Vehicle Parking On airport long term vehicle parking rates and terms. High: $40.00 Page Municipal Airport daily? Low: $7.00 Daily Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. FUELING Self-Fueling Permit (Annual-Private Individuals) Standard permits vary widely depending on related facility and administration costs. This is a fuel dispensary permit for private individuals. High: $100.00 Marana Regional Airport Low: A sampling of other regional airports show that an approved application and permit, is the only requirement and there is no apparent charge, except for a Fuel Flowage Fee, which is reported and paid monthly, on the honor system. Average Rate: $100.00 or Current Fuel Flowage Fee Current GEU Rate: Currently GEU does not charge an annual permit fee. Recommendation: GEU should implement an annual permit fee of $100.00 accompanied by a fuel flowage fee that is reported and paid monthly to airport administration. Commercial Self-Fueling Permit (Monthly) Dispensary Requirements Standard permits vary widely depending on related facility and administration costs. High: $50.00 Marana Regional Airport Low: None Average Rate: $50.00 11 Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Current GEU Rate: $100.00 Recommendation: GEU rate appears to be appropriate. Recommend annual CPI increase. Commercial Fueling Permit - FBO (Annually)- Option does not exist. Standard permits vary widely depending on related facility and administration costs. Average Rate: Rate negotiated. Current GEU Rate: Rate negotiated. Recommendation: Currently GEU does not (OFFER) a commercial fueling permit, if requested a negotiate rates would be specific to and reflect regional norms. Fuel Flowage Fee; FBO or SASO with appropriate type lease This category refers to entities authorized to provide commercial fuel sales on the airport. High: $0.045 cents a gallon. Page Municipal Airport Low: $0.13 cents a gallon. Mesa Falcon Field Airport Average Rate: $0.0875 Current GEU Rate: $0.09 per gallon current fuel flowage fee, monthly reporting, and payment. Recommendation: GEU is in line with comparable average. No change recommended. LANDING FEES Airport Landing Fee Most airports do not charge a landing fee for small General Aviation aircraft under 12,500 pounds MTOW. But most do charge for larger aircraft over 12,500 pounds MTOW or for commercial operations. This category applies to surveyed airports that charge for large or commercial aircraft operators. High: $1.50 1000 lbs. MTOW – Scottsdale Municipal Airport Low: $3.00 Single, $5.00 Multi, $7.00 Jet - Glendale Municipal Airport Average Rate: $1.05 1000 Lbs. MTOW Current GEU Rate: $3.00 Single, $5.00 Multi, $7.00 Jet Recommendation: GEU rate appears to be appropriate for smaller aircraft. However, recommend development of a more detailed landing fee that specifically addresses large and commercial aircraft with recommended charges of $1.05 per 1000 Lbs. MTOW for aircraft over 12,500 Lbs. or commercial operators. AIRPORT LABOR AND ADMINISTRATIVE RATES Airport Labor Rate Standard for airport provided personnel and associated overhead expenses. High: $200.00 Telluride Regional Airport Low: $50.00 Glendale Municipal Airport Average Rate: $100.00 Current GEU Rate: $50.00 Recommendation: GEU rate appears to be appropriate. Recommend annual CPI increase. 12 Airport Overtime Labor Rate Standard for airport provided personnel and associated overhead expenses. High: $100.00 Glendale Municipal Airport Low: None Average Rate: $100.00 Current GEU Rate: $100.00 Recommendation: GEU rate appears to be appropriate. Recommend annual CPI increase. Airport Call-out Calls outs are based on associated costs of personnel and required equipment or services. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Lighted “X” Use Fee This service should be based on general associated labor and materials costs. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms. Airport Damage This is a variable category and should include actual repair costs plus administrative costs as shown. Current GEU Rate: Based on actual cost. Recommendation: GEU rate appears to be appropriate. Review annually. Airport Use Fee (Aeronautical) – Depending on nature of event This category is a special use fee or permit for occasional events to cover labor and administrative costs. High: $50.00 Scottsdale Municipal Airport. Impact to operations Low: None Average Rate: $50.00 – permit fee Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms and include recovery of any impacts to the airport. Airport Use Fee (Non-Aeronautical) This category is a special use fee or permit for occasional events to cover labor and administrative costs. Current GEU Rate: Rate not offered. Recommendation: If GEU offers this specific category in the future it should reflect regional norms and include recovery of any impacts to the airport. IDENTIFICATION CARDS Airport Access ID Card-New Airport access card costs are generally comprised of the cost of the media being utilized, and the administration costs associated with the process. Initial costs of between $25.00 and $75.00 depending on media are common. Current GEU Rate: $15.00 Recommendation: GEU rate appears to be low. Recommend increase to $25.00 and review cost every three years. 13 Airport Access ID Card-Replacement Airport access card costs are generally comprised of the cost of the media being utilized, and the administration costs associated with the process. Initial costs of between $25.00 and $75.00 depending on media are common. Replacement costs are generally higher. Current GEU Rate: $15.00 Recommendation: GEU rate appears to be low and should be increased to $25.00 and the cost reviewed every three years. OFFICE RENTALS AND LEASES Airport Conference Room Rental Daily conference room space rentals for tenants and public High: $300.00 Sedona Airport Low: $40.00 Glendale Municipal Airport Current GEU Rate: $40.00 Recommendation: GEU rate is low. Office tenants are not charged. $100.00 aeronautical and $125.00 for non- aeronautical use. Airport Office Space Rentals/Leases Assorted offices spaces for rent to tenants. Most office space leases, at comparable airports are variable and based on negotiated agreements. Typically, they are $50 to $60 dollars per square foot, per annum, depending on associated overhead, conditions, and fair market value. Current GEU Rate: Rates are negotiated with airport management. GEUs current approved standard rate is $20 to $22 per square foot, per year. Recommendation: GEU rate seems low based on current evaluations, however, comparable studied airports conditions vary widely. Airport should evaluate fair market value for current comparable real estate on an annual basis and include CPI increases in contracts. LAND LEASES AND HANGAR RENTS Airport Land Lease Rates Current airport land lease rates, terms, conditions, and uses. Most land leases are variable and based on negotiated agreements. $0.40 to $0.60 cents per square foot per annum for raw land are common depending on associated costs and fair market value among surveyed airports. Current GEU Rate: The historic airport land lease rates have varied based on market conditions, and the current adopted rate offered is $ .52 per square foot, as of 2021. Recommendation: The current airport adopted rate is $ .52 per square foot (PSF) for city/airport owned land and is considered appropriate. This rate is based on the most current negotiated land lease for a new FBO Hangar. Historically, SOME older contracts have not reflected the market rates, nor have they contained any CPI increases. All new contracts should use the latest updated rates, to reflect the current airport policy. In addition, CPI adjustments or similar methodology should be applied as new leases or renewed leases arise. Airport Hangar Lease Rates Airport Hangar lease rates, terms, and conditions. Small T-Hangars may run between $110.00 to $250.00 monthly larger hangars generally cost between $0.17 cents to $0.25 cents PSF per month. 14 Current GEU Rate: Hangars at Glendale Municipal Airport are privately owned, and contracts for lease rates with condominium associations have been variable and negotiated. GEU does not regulate the rates that private hangar owners charge. Recommendation: The Glendale Municipal Airport does not currently own any hangars directly. Individual hangars, or hangar groups such as condominiums, are governed and charged under a land lease agreement containing specific “Privileges and Requirements” for the operations facilities, or hangars contained thereon. In more recent year’s appropriate escalation clauses have been included in all contracts, and it is recommended that all new contracts going forward continue to reflect market values and contain CPI or other inflationary measures to ensure those fair market values are maintained. In addition, as older existing land leases are renewed, all efforts should be made to include agreed upon CPI increases and/or agreed upon escalation clauses. 15 SECTION 4 – OBSERVATIONS AND RECOMMENDATIONS Many of the current rates and fees elements for the Glendale Municipal Airport are within reasonable parameters compared to the surveyed airports. However, the areas where Glendale’s fee structure appeared to be lower than the average; recommendations were made to increase those charges incrementally over time, until a fair market value could be achieved. This is a policy decision of GEU’s management and will assist the current tenants to make adjustments incrementally. In addition, it is highly recommended for certain categories such as tenant land leases, and other longer-term agreements, include annual Consumer Price Index (CPI) or similar market indicator lease adjustments to assist the Airport to make fair price adjustments over the term of those lease agreements. Based on survey comparisons, most recommendations for modifications to Glendale’s existing fee structure were made for daily and monthly charges for single- and twin-engine aircraft tie downs, turboprop, and jet open tie downs to bring them more in line with regional norms. Each of these categories were also evaluated to determine if they were reasonable in the current market. The most important policy issue discovered as a result of this analysis is that GEU has not developed a robust policy of market value escalators that would assist the Airport to approach self-sufficiency and income/outlay equity. GEU should develop a management practice of annual review of ALL Rates and Fees, to be duly approved through the annual budgetary process and adjusted yearly. As with all such Surveys, it is prudent for the Airport to evaluate its Rates and Fees structure at least annually to continue to monitor the marketplace and assist GEU to remain competitive with other regional facilities. As noted in the GEU Strategic Plan, dated May 2022, one of the Plan’s Strategic Initiatives was identified as financial sustainability. This Survey provides a solid baseline for Rates and Fees category adjustments, which can assist the Airport approach that strategic goal. 16 APPENDIX A – COMPARABLE AIRPORTS FOR SURVEY 18 APPENDIX B RATES AND FEE SURVEY