HomeMy WebLinkAbout02 AIS Airport Rates and Fee's work session AGENDA ITEM SUMMARY
WORK SESSION MEETING DATE: February 7,2017
AGENDA ITEM TITLE: Discussion of Airport Fees and Charges for 2017.
STAFF RESPONSIBLE: Chris Padilla
ISSUE STATEMENT: As part of the budget process for the airport we annually set airport fees
and charges for the coming year via the attached resolution. The following table summarizes the
proposed rates, fees and charges for 2017 for each class of user and the change, if any, from 2015.
Please note, that in 2016 no Fees or Charges were increased and this adjustment will encompass 2
years of increases.
Type of rate, fee or charge Class of user 2015 2017 Change
Landing fees (per 1,000 pounds): Airlines—Signatory, Pre-Signatory,
& Multi-Seasonal $5.15 $5.67 10% increase
Airlines—Seasonal $7.21 $7.93 10% increase
General Aviation(G.A.) $6.14 $6.75 10% increase
Locally-Based G.A. none none no change
Fuel flowage fee (per gallon): all users $ 0.12 $ 0.12 no change
Airline terminal exclusive and Signatory, Pre-Signatory,
preferential space rent: & Multi-Seasonal $68.92 $75.81 10% increase
(annual per square foot) Seasonal $96.49 $106.14 10% increase
Outside Covered $22.97 $25.27 10% increase
Outside - Seasonal $32.16 $35.38 10% increase
Airline terminal shared-space rent: all airlines $68.92 $75.81 10% increase
These rates were calculated to recover the airport's operating costs attributable to the airlines and
general aviation and to maintain the airport's financial capacity and flexibility for future capital
improvement projects.
BACKGROUND: For management and rate-setting purposes we use six classifications of airport
aeronautical users; however, we currently have no pre-signatory or seasonal airlines:
1. Signatory Airlines-airlines with lease and use permits that have provided scheduled service
of at least one flight daily for at least one full year
2. Pre-Signatory Airlines-airlines that intend to qualify for signatory status but are in their first
year of performance
3. Multi-Seasonal Airlines-airlines that provide scheduled service only during the winter and
summer but rent space year-round
1
4. Seasonal Airlines-all other airlines that occupy and use the airport airline terminal and
associated facilities
5. Locally-Based General Aviation-year-round,locally-based aircraft with a maximum gross
landing weight of 12,500 pounds or less
6. General Aviation-all other aeronautical users of the airport,excluding military.
LINK TO STRATEGIC PLAN: Prosperous Economy---Sustainable economy and employment
KEY DISCUSSION ITEMS: We generally set airport fees and charges on a "compensatory"
basis, i.e., charges to the airline and general aviation users cover the cost of their use of airport
facilities. FAA regulations limit landing fees to an amount that covers the full operating and capital
costs of the "airside" of the airport. Likewise,terminal rents are limited to an amount that covers
the full operating and capital costs of the terminal.We have amortized the capital costs to be spread
over a 5 year period and the operating costs for 2017 for both landing fees and terminal rent so as
to not increase the fees over a 10% change. Example is below
Landing fees are stated as an amount per one thousand pounds of maximum allowable gross
landing weight of the aircraft. For example, the current landing fee for SkyWest's CRJ-700
(67,000 pounds) is approximately $345 (67 x $5.15), and this would increase to approximately
$379 in 2017. Airport staff will inform the airlines and general aviation representatives about the
proposed fee increases and will bring their comments to the public hearing.
Terminal rents are increasing by 10.0% to keep pace with the nominal increase in operating costs
as enplanements increase cost of operations increase due to the increased passenger needs and
crowd flow management required. Maintenance also increases due to increased use on terminal
facilities.
BUDGETARY IMPACT: The proposed fee increases are required to meet the revenue
estimates in the 2017 airport budget. These revenue increases are also needed to maintain the
airport's financial capacity and flexibility for future capital improvement projects.
RECOMMENDED BOCC ACTION: Review 2017 Rates and Charges and direct staff to
bring back a resolution for first reading on February 22nd.
2