TO: Board of Supervisors
FROM: Ryan J. Alsop, Chief Executive Officer
REPORT BY: Jasmine Elo, Management Analyst
SUBJECT: Changes to Fees Charged by the Napa County Airport and Planning, Building and Environmental Services - Environmental Health Division
RECOMMENDATION
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Conduct a public hearing and adopt resolutions changing certain fees for the Napa County Airport and the Environmental Health Division of Planning, Building and Environmental Services. (Fiscal Impact: $960,445 Revenue; $944,631 General Fund $15,814 Airport; Not Budgeted; Discretionary)
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BACKGROUND
ENVIRONMENTAL HEALTH:
State Law allows government agencies to recover the cost of providing services by charging fees to those receiving the services. Napa County establishes fees for services and periodically updates those fees. The most recent comprehensive update was approved by the Board of Supervisors (Board) on November 5, 2024, with Resolution 2024-119. The changes to County fees were based on a User Fee Study (2024 Study) conducted by MGT Consulting Group (MGT) using FY2023-24 salary and benefit costs. The 2024 Study describes MGT’s calculation methodology and data used to revise fees for several County departments and divisions. The County’s Public Services Employees’ (PSE) Memorandum of Understanding (MOU) was adopted near the conclusion of the study’s calculation and the 4% cost-of-living adjustment was incorporated.
MGT recently prepared an addendum (2025 Addendum) to the 2024 Study which recommends changes to fees for departments and divisions not included in the 2024 Study, as well as revisions to fees for some of the departments and divisions that were included in the 2024 Study. Most of the recommended fees from the 2025 Addendum were adopted by the Board by resolution or ordinance on May 6, 2025. However, fees relating to the Environmental Health division of PBES were not yet ready for adoption at that time.
The Environmental Health Division requested revisions to the recommendations in the 2024 Study to align with the Division’s current operations and to align with the Building Division’s programs. Environment Health worked with MGT to revise twelve (12) Certified Unified Program Agencies (CUPA) fees that were discovered to have incorrect time estimates in the model. In addition, Environmental Health added nine (9) fees for Building referral reviews that were not included in the previous report.
The proposed effective date for the changes in this addendum is July 20, 2025. Further the Resolution provide for annual updates to remain current with costs to coincide with cost-of-living increases matching the PSE MOU. This incorporates increasing fees 3.5% on July 1, 2025, 3.5% on July 1, 2026, and subsequent cost-of-living adjustments per a federal index.
NAPA COUNTY AIRPORT:
The Airport Enterprise Fund is financially self-sufficient, receiving no financial support from the County’s General Fund. Airports are authorized to adopt charges and fees, and to collect funds from leases, pursuant to Government Code section 50474. Airport Staff is requesting changes to the Airport fee schedule as indicated in Exhibit A to the Resolution adopting changes to Airport fees and summarized here:
• Increases to Hangar Rental Fees and Airport Storage Room Fees. The 3.0% increase to monthly rates, rounded to the nearest whole dollar, based on the June 2023 to June 2024 Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, will apply to county owned hangars and storage rooms, along with privately owned portable hangars.
• Change in description of Parking Fees to include how the fee is based off maximum takeoff weight, to align with existing fee collection assessments.
• Increase to Tiedown Rental Fees.
• Change in description to Airport Landing Fees, to include verbiage regarding Part 380 Public Charter operations.
• New Miscellaneous Fees for keychain remote opener, boom lift service, pressure washing service, and transaction/payment fees.
• Change in description of Miscellaneous Fees to update the length of time for Conference Room rental fees and update the length of time for Vehicle Parking.
• Change in description and increase to Miscellaneous Fees, Unauthorized Vehicle and Aircraft Parking, adding unauthorized in description and increasing rate.
The proposed increase to the hangar and storage room rates using the CPI will increase Airport revenues in Fiscal Year 2025-2026 by approximately $15,814. The rates for the subject hangars at the Napa County Airport have traditionally been within range of other comparable airports with only CPI increases being applied for many years. Additionally, the methodology used to calculate the increase is consistent with the Airport's General Aviation Leasing/Rents and Fees Policy adopted by the Board.
Costs associated with utilities and the ongoing maintenance of the Airport's aging hangars continue to rise and periodic rent increases are needed to keep up with the rate of inflation. The proposed fee update and the Fiscal Year 2025-26 budget were presented to the Airport Advisory Commission on April 7, 2025, and the Commission recommended Board approval of the budget as drafted. If approved, the effective date of these changes to the airport fees will be July 1, 2025.
Procedural Requirements:
1. Open Public Hearing
2. Staff Report
3. Public Comment
4. Close Public Hearing
5. Motion, second, discussion, and vote to adopt the Resolutions
Recommended Action:
Adopt the Resolutions establishing and revising certain fees for the Napa County Airport and the Environmental Health Division of Planning, Building and Environmental Services.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The County may establish fees to recover the cost of providing certain services from those receiving the services. Generally, fees must be lowered if they exceed the cost of providing the services and fees should be increased if they are less than the cost of providing services to avoid General Fund tax revenues subsidizing the services. For the Airport, the changes will increase rents and fees by CPI and will result in additional annual revenue of approximately $15,814 during fiscal year 2025-2026. As utility maintenance costs continue to rise for hangars, doors, and gates, additional revenue is needed to continue with preventative maintenance activities. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Revenues to better offset division expenditures. Amending fees will assist the Airport in collecting an additional $15,814 per year until such time as the fees are amended again. The proposed fees have been reviewed by the Airport Advisory Committee and incorporated into the recommended budget for Fiscal Year 2025-26. |
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Consequences if not approved: |
General Fund tax revenue will subsidize delivery of services in some instances. If not approved, the Napa County Airport would not be able to raise fees consistent with rising CPI, ultimately resulting in reduced ability to maintain the airport, including airport-owned hangars. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is statutorily exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15273 as the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges by a public agency to meet operating expenses, including employee wage rates and fringe benefits, for the purchase or leasing supplies, equipment, or materials, and meeting finance reserve needs and requirements.