COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

May 5, 2011

BOARD MEETING DATE:

May 24, 2011

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:

Adopt a Resolution:

1.

Adopting the proposed schedule of fees for the use of facilities at the San Carlos and Half Moon Bay Airports effective July 1, 2011; and

2.

Adjusting the aircraft hangar, T-shade and tiedown fees each succeeding July 1, through 2014, to reflect the increase or decrease in the Bay Area Consumer Price Index; and

3.

Increasing the rate for the “C” through “G” and “T” hangars at the San Carlos Airport and the Port-a-Port hangars at Half Moon Bay Airport an additional 3% each succeeding July 1, through 2014; and

4.

Establishing a standard late fee of $10 plus 5% of the amount due for payments not received within ten days of the due date, unless otherwise specified in a written agreement with the County.

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 including automatic rate adjustments for aircraft hangar, T-shade, tiedown and storage fees based on the change in the Bay Area Consumer Price Index (CPI) during each of the succeeding three years.

The Airports Division’s operating revenue is financed primarily with various fees for the use of Airport facilities. The current fee structure and automatic CPI rate adjustments adopted by your Board on June 3, 2008, expires June 30, 2011.

DISCUSSION:

We are recommending that your Board adopt the proposed schedule of fees to be effective July 1, 2011, which include:

Ø

An increase of 1.7% for aircraft hangar, t-shade and tiedown fees based on the increase in the CPI over the previous year, with an additional 3% increase to the rate for the “C” through “G” and “T” hangars at the San Carlos Airport and the Port-a-Port hangars at Half Moon Bay Airport to more accurately reflect fair market value and higher maintenance costs for these facilities and to help fund the future replacement of these older hangars.

Ø

An increase in the overnight transient parking fees at the Half Moon Bay Airport from $8 per night for small aircraft and $15 per night for large aircraft to $10 and $20 respectively to match the fees for these services at the San Carlos Airport;

Ø

No increase in the monthly rental fees for airport storage rooms in an effort to decrease the number of vacant storage rooms.

The proposed Airport Fee Schedule, effective July 1, 2011, reflects the foregoing and is attached to the Resolution. We are also recommending that the hangar, T-shade and tiedown fees be adjusted each succeeding July 1, through 2014, to reflect the increase or decrease in the CPI, with said changes rounded to the nearest dollar, including an additional 3% increase to the rate for the “C” through “G” and “T” hangars at San Carlos Airport and the Port-a-Port hangars at Half Moon Bay Airport.

Additionally, we are recommending that the Board establish a standard late fee for Airport payments of $10 plus 5% of the amount due for payments not received within ten days of the due date, unless otherwise specified in a written agreement with the County.

We have notified the airport pilots associations of the proposed fee increases and the date when your Board will be considering our recommendation.

County Counsel has reviewed and approved the Resolution as to form.

Approval of this action will contribute to the Shared Vision 2025 outcome of a Livable Community by ensuring that appropriate fee schedules are established to allow the County Airports to continue to be economically self-sufficient and have adequate funding to finance safety, security and infrastructure improvements.

FISCAL IMPACT:

The increase in revenue to the Airport Fund from the rate adjustments recommended for July 1, 2011, is estimated at $33,000 for the first year. Additional revenue from the 3% adjustment for the “C” through “G”, “T” and Port-a-Port hangars is estimated at $12,000 for each of the succeeding three years. Increases or decreases from the three-year annual automatic CPI adjustments for hangar, T-shade and tiedown fees would depend on the change in the CPI during those subsequent years.

There is no impact to the General Fund.