To: Board of Supervisors
Department or Agency Name(s): Sonoma County Public Infrastructure
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2550
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Consolidated Fee Hearing - Public Infrastructure FY24-25 Fees for Airport Land and Facility Use
End
Recommended Action:
Recommended action
Adopt a Resolution establishing rates and charges for the use of land and facilities at the Charles M. Schulz - Sonoma County Airport effective July 1, 2024.
end
Executive Summary:
The Airport imposes charges for use of Airport land and facilities, including covered and non-covered aircraft storage, terminal building use, aircraft landing, vehicle parking, fuel flowage, autocross track, security badges, special events, applications to conduct business on the Airport, and penalties. Staff annually evaluates Airport rates and charges for accuracy, overhead costs, and fair market value. The proposed new charges and rate increases recommended today were all reviewed and approved by the Aviation Commission on February 15, 2024. Proposed adjustments are estimated to increase FY 24/25 fees and charges revenues by $6,646.
Discussion:
The Airport rates and charges set the price structure for general and commercial aviation users of certain Airport services, as well as the rental or use of Airport-controlled property and amenities. The rates and charges schedule both sets fees for services at the Airport and serves as the pricing metric for certain agreements pursuant to which users may contract with the Airport for the use of real property or other amenities. The proposed rate increases for the upcoming fiscal year will provide revenue to meet the increased costs associated with operations, regulatory compliance, and future Airport improvements. The increases will be imposed equally on all users for particular uses.
This fiscal year, the Airport is recommending updates to certain Aircraft Storage and Storerooms, certain Landing Fees, Terminal Digital Advertising, Ground Lease Rates, Commercial Vehicle Operator Fees, Staff Labor Fees, Non-Refundable Application Fees, and Badging Fees, and Badging Remedies Fees as follows:
A. Aircraft Storage and Storerooms: The Airport is proposing a rate increase of 14% for a certain hangar due to an addition to the hangar that occurred since the last fee change. All other Aircraft Storage and Storerooms Fees remain unchanged.
B. Landing Fees: The Airport is proposing a 13% increase in landing fees for State of California Fire (CalFire) Suppression Flights Large Tankers - over 100,000 lbs. This proposed fee increase will help recover maintenance costs incurred due to the effect of Large Tankers on Airport pavement including runways, taxiways, and parking areas. Existing Airport landing fees for CalFire tankers are lower than many other California Airports and when the Airport last adjusted the base landing fee rate, this rate was left unchanged. As a result, the fee charged is now lower than the base rate and needs to be increased.
C. Vehicle Parking Rates: The Airport is proposing a change in the free parking terms from two hours free parking in All Parking Lots to 30 minutes of free parking in the Short Term Lot. A validation system will be implemented to allow patrons of pre-security concessions to park for free for two hours. The proposed change is based on recommendations from an audit of parking operations by the Auditor-Controller, Treasurer, Tax Collector (ACTTC). ACTTC determined that the two-hour free parking in all lots was a gifting of public funds and recommended changes to the policy. The Airport will go to validation for the pre-security concessions as the solution to their recommendations.
D. Ground Lease Rates: The Airport proposes an increase in Ground Lease Rates on New Leases Only of between 1.9% and 2.7% depending on location. Current Land lease rates range between 40 cents and 75 cents per square foot. The proposed rates would increase the per square foot cost on new leases to between 41 cents and 77 cents and align new lease rates with current market conditions. If approved, these rates will be used as a base rate for new commercial lease agreements negotiated in FY 2024-25. Existing leases are not subject to this change as their rates are determined by existing contracts.
E. Commercial Vehicle Fees: The Airport is proposing a 150% increase to the Commercial Vehicle Operator Application Fee (from $30 to $75). To ensure the safety of airport passengers using ground transportation services, the operator’s insurance, applicable permits, and other application materials require thorough review. The proposed increase will cover costs associated with Airport staff reviewing these documents and other requirements established for the Airport by Risk Management. The increase was based on the average of 1.5 hours it takes to process each application package.
F. Non-Refundable Application Fees: The Airport is proposing an increase to certain Non-Refundable Application Fees to cover administrative costs. All proposed increases are below 3%.
G. Badging Agreement Violation Charges: Security violations present significant safety and security concerns, and can cause the Transportation Security Administration (TSA) to impose penalties upon the Airport for violations. TSA issued a directive urging the Airport to intensify actions aimed at mitigating security issues within secured-area badge holders at the Airport. Pursuant to TSA directive, the Airport is proposing an increase in certain penalties charged via the badge-holders agreement between the airport and authorized badge holders of 33% and 100%. All badge holders enter into agreements with the Airport regarding their conduct. TSA Enforcement Sanction Guidance Policy dated November 14, 2022 and numerous sub-sections of Section 49 of the Code of Federal Regulations including 49 CFR Part 1542 give TSA the authority to fine Airports and others amounts well in excess of what the Airport is proposing for similar violations for failing to comply with their guidelines.
Proposed Fee Decreases:
A. Terminal Digital Advertising Rates. The Airport is proposing a 7% decrease in the Terminal Digital Advertising Rate for a Baggage Claim Full Takeover from $1,500 to $1,400, and a 10% decrease in the Full Airport Digital Takeover Rate from $2,500 to $2,250. The Airport engaged FUSE Connect, LLC for xxxx (brief explanation of services) and the consultant recommended rate increases in response to demand generation.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
Airport Fee Schedule adoption action dates: 3/21/23, 3/22/22, 3/23/21, 5/14/19, 6/5/18, 5/9/17, 6/21/16, 2/9/16, 4/21/15, 4/24/14, 4/23/13, 4/26/12.
Fiscal Summary
|
Expenditures |
FY23-24 Adopted |
FY24-25 Projected |
FY25-26 Projected |
|
Budgeted Expenses |
|
$6,646 |
$6,646 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
|
$6,646 |
$6,646 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
|
|
|
Fees/Other |
|
$6,646 |
$6,646 |
|
Use of Fund Balance |
|
|
|
|
General Fund Contingencies |
|
|
|
|
Total Sources |
|
$6,646 |
$6,646 |
Narrative Explanation of Fiscal Impacts:
The Airport is projecting an additional $6,646 in revenue based on requested new or increased fees and charges during FY24-25.
Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
Airport Master Fee Schedule FY24-24
All Rates Resolution
Fee Details
Fee Cover Sheet
Related Items “On File” with the Clerk of the Board:
None.