Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: James C. Porter, Director of Public Works
Subject: Fee Schedule for the San Carlos and Half Moon Bay Airports
RECOMMENDATION:
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Adopt a resolution authorizing:
A) The adoption of the Airport Fee Schedule for the use of facilities at the San Carlos and Half Moon Bay Airports, effective July 1, 2018; and
B) A three percent increase on the following categories of fees: aircraft hangar, T-shades, and tiedown fees, effective July 1, 2019; and
C) An increase to the Transient Aircraft overnight parking fees at Airports from $10.00 per night to $15.00 per night for small aircraft transient tiedowns, and from $20.00 to $25.00 per night for large aircraft transient tiedowns; and
D) A “Daily Use Fee” of $50.00 for Aeronautical Service Providers to provide certain aeronautical services not currently offered by based businesses to tenants at the Airports.
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BACKGROUND:
Your Board has previously adopted resolutions establishing a schedule of fees for the use of facilities at the San Carlos and Half Moon Bay Airports (Airports), referred to as the Airport Fee Schedule, which has included automatic rate adjustments for aircraft hangar, T-shade, tiedowns, and storage fees based on the change in the Bay Area Consumer Price Index (CPI) every year on July 1st. The current fee structure and automatic CPI rate adjustments expired on June 30, 2015.
The authorization to update fees based on CPI expired on June 30, 2015, and fees have not increased at the Half Moon Bay Airport since 2013 and San Carlos Airport since 2015.
DISCUSSION:
The Airport Enterprise Fund is financed primarily through facility use fees collected for the use of the San Carlos and Half Moon Bay Airport facilities. These rates are set at fair market value as a condition of accepting Federal Aviation Administration grant monies and are consistent with comparable general aviation airports.
The Department of Public Works (Department) recommends adopting the proposed fees so the Airport remains financially sustainable and has adequate funding to meet operational cost increases. The Department also recommends increasing the tiedown fees for small and large aircraft. These fees have not been increased since 2006.
Furthermore, the Department recommends increasing the following categories of fees by an additional three percent (3%) as of July 1, 2019; aircraft hangar, T-shades, and tiedown fees. The proposed increase is consistent with the average CPI increases over the last several years, and with the inflationary rate applied to all new Airport facility lease agreements. This fee increase will allow the Airport to continue to meet its financial obligations.
The Department has notified the San Carlos and Half Moon Bay Airports’ Pilots Associations of the proposed fee changes and the date when your Board will be considering this recommendation.
County Counsel has reviewed and approved the resolution as to form.
Approval of this action contributes to the Shared Vision 2025 outcome of a Livable Community by ensuring that appropriate fees are established to allow the County Airports to be financially self-sufficient and have adequate funding to finance safety, security, and infrastructure improvements.
FISCAL IMPACT:
The increase in revenue to the Airport Enterprise Fund from the rate adjustments is estimated at $200,000 for FY 2018-19. There is no impact to the General Fund.
Attachment: Proposed Airport Fee Schedule