TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Mark Witsoe, Airport Manager
SUBJECT: Adoption of a Resolution Amending Fees and Amending Hangar Descriptions at the Napa County Airport
RECOMMENDATION
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Director of Public Works requests adoption of a Resolution amending the County's Policy Manual Part III, Fees, Part 30 Airport, effective July 1, 2023, increasing hangar and storage room fees by 7.6% and amending hangar descriptions.
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EXECUTIVE SUMMARY
Adoption of the resolution will amend Part III, Fees, Part 30 Airport, within the County's Policy Manual by modifying those fees as shown by strike-out in Exhibit "A" of the resolution. The proposed increase to the hangar and storage room rates is tied to the June 2021 to June 2022 Annual Consumer Price Index (CPI) for Urban Wage Earners and Clerical workers for San Francisco-Oakland-Hayward. The proposed adjustment will increase Airport revenues in Fiscal Year 2023-24 by approximately $15,743.
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? |
The modified rates have been incorporated into the recommended budget for the Airport Enterprise Fund for Fiscal Year 2023-24. |
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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 $15,743 during fiscal year 2023-24. As utility maintenance costs continue to rise for hangars, doors, and gates, additional revenue is needed in order 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 $15,743 per year until such time as the fees are amended again. The proposed fees have been incorporated into the recommended budget for Fiscal Year 2023-24. |
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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. |
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County Strategic Plan pillar addressed: |
Livable Economy for All |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: ENVIRONMENTAL DETERMINATION: The proposed action is exempt from the California Environmental Quality Act pursuant to Title 14, California Code of Regulations, section 15273 (a)(1) (Rates, Tolls, Fares, and Charges).
BACKGROUND AND DISCUSSION
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 30.015 Standard Hourly Rates. A 10% increase to the hourly rate, rounded to the nearest whole dollar, of Airport staff includes recent Cost of Living and Labor Agreement Salary increases.
• Increases Sec. 30.060 Hangar Rental Fees and Sec. 30.090 Airport Storage Room Fees. The 7.6% increase to monthly rates, rounded to the nearest whole dollar, based on the June 2021 to June 2022 Consumer Price Index for Urban Wage Earners and Clerical Workers, will apply to county owned hangars and storage rooms, along with privately owned portable hangars.
• Changes description in Sec. 30.060 Hangar Rental Fees. Hangar Numbers were updated from C1-C4 and C5-C8 to A1-A4 and A5-A8, respectively, to align with existing box hangar signage. Hangar 55 is removed as it will be vacated during fixed base operator (FBO) development on the airfield. The description “Privately-Owned Portable Hangars” is changed to “Ground Lease for Privately-Owned Portable Hangars” to describe the type of lease agreement more accurately.
The proposed increase to hangar and storage room rates using the Consumer Price Index will increase Airport revenues in Fiscal Year 2023-2024 by approximately $15,743. 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 continues 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 2023-24 budget presented to the Airport Advisory Commission on April 3, 2023 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).