Title
Department of Transportation recommending the Board adopt a resolution increasing the fees and land use rates effective July 1, 2010 for the Placerville and Georgetown Airports.
FUNDING: Placerville and Georgetown Airports Enterprise Fund - Fee Revenue.
Resolution 097-2010
Body
Fiscal Impact/Change to Net County Cost: None.
The County will receive approximately $14,700 in additional annual revenue from the Airport Users. This amount is included in the FY 2010-2011 budget. There is no net cost to the County General Fund associated with this agenda item.
Background:
The last increase in fees for the County Airports was July of 2004. On April 7, 2010, at the Placerville Airport Advisory Committee meeting, the Advisory Committee unanimously approved the proposed rate and fee increases being presented to the Board.
Reason for Recommendation:
Airport's expenses have increased by approximately 50% since 2004 with no increase in fees. The Consumer Price Index (CPI) for the San Francisco-Oakland-San Jose local area has increased by 14% since December 2003.
The Resolution before the Board proposes to increase the existing airport fees by approximately 10%. The exception is the County Rental Hangar fee which is proposed to increase by 36% making it comparable to the fee of similar surrounding airports. The fee increases being proposed are required to help offset the increasing costs of operating the Airports.
The Resolution includes the addition of a new fee related to the Assignment of Ground Leases. This fee will help offset the cost of Department of Transportation (DOT) and County Counsel staff time required to prepare, review and submit said assigned leases to the Board for acceptance.
DOT and CAO staff will be analyzing Airport Operations over the next few months and will be returning to the Board during the 2010/2011 Budget Addenda process to discuss costs, revenues, and on-going sustainability of the Airports.
Action to be taken following Board approval:
1. The Board Chair will sign the Resolution.
2. The Clerk of the Board to return one fully-executed copy of Resolution to DOT (Airports) for administration.
Contact: James W. Ware, P.E.
Director of Transportation
Concurrences: County Counsel and Placerville Airport Advisory Committee