TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Mark Witsoe, Airport Manager
SUBJECT: Adoption of a Resolution Amending Fees at the Napa County Airport
RECOMMENDATION
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Adopt a Resolution amending the County’s Policy Manual Part III, Fees, Part 30 Airport, effective July 1, 2024, increasing hangar and storage room fees by 2.3%. (Fiscal Impact: $15,850 Revenue; Airport Fund; Budgeted; Discretionary)
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BACKGROUND
The Airport Enterprise Fund is financially self-sufficient, receiving no financial support from the County’s General Fund. Staff is requesting an amendment to Napa County's Policy Manual, Part III: Fees, Part 30 Airport, in order to ensure the continued financial viability of the Airport Enterprise Fund. A summary of the requested amendment of Part III: Fees, Part 30 Airport, of the County of Napa Policy Manual, as outlined in Exhibit A of the attached resolution, is as follows:
• Increases Sec. 30.060 Hangar Rental Fees and Sec. 30.090 Airport Storage Room Fees. The 2.3% increase to monthly rates, rounded to the nearest whole dollar, based on the June 2022 to June 2023 Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, will apply to County-owned hangars and storage rooms, along with ground leases for privately-owned portable hangars.
• Change in Description Sec. 30.040 Airport Landing Fees for Commercial Operations. The fee description for aircraft weighing above 15,000 pounds was updated to include the word “additional”, to align with existing fee collection assessments.
• Increase Sec. 30.050 Tiedown Rental Fees from $75 to $80 per month.
• Addition of a new storeroom to Sec. 30.090 Airport Storage Room Fees.
The proposed increase to the hangar and storage room rates using the Consumer Price Index will increase Airport revenues in Fiscal Year 2024-2025 by approximately $15,850. 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 increase was included in the Fiscal Year 2024-25 budget presented to the Airport Advisory Commission on April 9, 2024 and the Commission recommended Board approval of the budget as drafted.
This item is specifically exempt from the voting requirements of Article XIIIC of the California Constitution because it is a charge imposed for entrance to or use of the County of Napa property or the purchase, rental or lease of County property (e.g., facility rental fees, room rental fees, equipment rental fees, on and off-street parking, tolls, franchise, park entrance, museum admission, tipping fees, golf green fees, et cetera).
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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Where is it budgeted? |
It is included in the FY24-25 recommended budget for the Airport- Operations Fund (Fund 5010; Subdivision 5010000) |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The fee amendment will increase rents and fees by CPI and will result in additional annual revenue of approximately $15,850 during fiscal year 2024-2025. 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? |
No |
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Future fiscal impact: |
Amending fees will assist the Airport in collecting an additional $15,850 per year until such time as the fees are amended again. The proposed fees have been incorporated into the recommended budget for Fiscal Year 2024-25. |
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Consequences if not approved: |
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 not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.