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SR-207-006 F:/Resource/Share/staffreports/airport landing fee.doc City Council Meeting: May 13, 2003 Santa Monica, California TO: Mayor and Council Members FROM: City Staff SUBJECT: Introduce and hold first reading of Ordinance to Amend Section 10.04.06.100 of the Santa Monica Municipal Code providing for Weight- Based Landing Fees at the Santa Monica Airport, and Resolution to revise Fees at the Airport for Event and Film Permits and Vehicle Parking INTRODUCTION: This report recommends that the City Council amend Section 10.04.06.100 of the Santa Monica Municipal Code to incorporate weight-based landing fees at the Santa Monica Airport, and approve a resolution to revise fees at the airport for event and film permits and vehicle parking. A resolution establishing the landing fees will be submitted to Council with the second reading of the ordinance. BACKGROUND: The Airport operates as an enterprise fund that is separate and apart from the City’s General Fund. Its operation and maintenance costs are supported through the collection of user fees and rental income from various aviation and non-aviation leaseholds. The City’s objective is to ensure that costs for essential infrastructure, maintenance, operations and staffing for Airport facilities and services be fully covered by the Airport’s rates and charges. Staff proposes the following: ? Amendment of the landing fees section of the Santa Monica Municipal Code to provide for a schedule of weight based fees for all aircraft 10,000 pounds or greater 1 ? Establishment of a fee for over-night vehicle parking permits ? Application of filming and events permit fees to activities on leasehold properties DISCUSSION: Landing Fees The most essential infrastructure of an airport is its runway and taxiways. Proper maintenance is absolutely fundamental to the safe operation of the airport. Pavement condition is directly affected by usage and therefore the associated maintenance costs are directly correlated with weight of aircraft and their impact on the airside surfaces. In 2000, the City hired the firm of Pavement Consultants Inc. (PCI) to conduct a comprehensive analysis of the Airport’s runway and taxiway pavement infrastructure. The PCI report establishes the existing condition of the airside pavement surfaces. It defines and establishes required maintenance criteria necessary for continued safe operations through 2015. Under current operating conditions, PCI identified $8,060,000 in pavement maintenance and repair costs during the 15 year period. To address these costs, PCI recommended that the City establish an Airside Pavement Maintenance Program funded by weight-based landing fees. The proposed weight-based landing fees are tied directly to the maximum landing weight of an aircraft and account for the increased damage caused by heavier aircraft. PCI developed a relative damage factor scale that relates the negative impacts caused by the weight of the aircraft. PCI then correlated the relative damage factor to the funding required for an airside surfaces maintenance program to develop a recommended landing fee schedule. 2 During their February 25, 2002 meeting, the Airport Commission received a briefing by PCI regarding the methodology used to develop the Pavement Maintenance Program and its companion weight-based landing fee funding proposal. After thoughtful discussion and deliberation, the Airport Commission voted unanimously to support the program and requested that staff forward the proposal to the City Council for consideration. Overnight Vehicle Parking Fee Overnight vehicle parking is generally prohibited at the airport, however staff does issue permits to persons who need to leave a vehicle in one of the parking lots while traveling. For security purposes, an application providing vehicle and owner information must be processed and a permit prepared for display on the vehicle. There is no charge for this permit allowing free overnight parking although the airport has 24 hour security monitoring. Free parking is normally not provided for at City or private lots. Staff proposes a nominal $5.00 per night parking permit fee. Hangar and tie-down tenants would be allowed to park without charge in their respective tie-down or hangar in conformance with Airport rules and regulations, consistent with current practice. Film and Event Permits Virtually all filming and events take place on leasehold properties. The leaseholders generally charge for the use of their sites and facilities. Airport staff reviews, processes and issues the permit and then must monitor these activities to ensure compliance with City and Airport codes and policies as well as coordinating movements through the Airport. 3 Motion picture/video permits are currently $250 and still shoot permits at the airport are $100. The fee schedule is not currently applied to permits for leaseholders. Staff proposes that the established Airport film and the City event permit fee schedules be applied to all Airport permit applicants, irrespective of where the event or filming occurs on the Airport. BUDGET/FINANCIAL IMPACT: The anticipated impact of the Airport-related fee proposals are as follows: ? Landing Fees: $ 532,000.00 ? Event and Film Permits: $ 14,000.00 ? Overnight Vehicle Parking Fees: $ 2,500.00 The impact of all fee increases will be included in the Proposed FY 2003-04 Budget. RECOMMENDATION: It is recommended that the City Council introduce for first reading an ordinance amending Section 10.04.06.100 of the Santa Monica Municipal Code related to weight- based landing fee schedule, and adopt the attached resolution setting various fees. A resolution establishing the landing fees will be submitted to Council with the second reading of the ordinance. Submitted by: Jeff Mathieu, Director of Resource Management Bob Trimborn, Airport Manager Rod Merl, Senior Administrative Analyst Attachment A: Proposed Weight Based Landing Fee Attachment B: Fee Resolution – Airport Fees Attachment C: Ordinance Related to Landing Fees 4 Santa Monica Airport Landing Fee Schedule The following landing fee schedule is based upon the maximum certificated gross landing weight of the aircraft as published by the aircraft manufacturer. Landing Weight (in pounds) Fee Per 1,000 lbs* 10,000 to 10,999 $0.29 11,000 to 11,999 $0.83 12,000 to 12,999 $1.36 13,000 to 13,999 $1.90 14,000 to 14,999 $2.43 15,000 to 15,999 $2.97 16,000 to 16,999 $3.07 17,000 to 17,999 $3.17 18,000 to 18,999 $3.26 19,000 to 19,999 $3.36 20,000 to 20,999 $3.46 21,000 to 21,999 $3.43 22,000 to 22,999 $3.40 23,000 to 23,999 $3.37 24,000 to 24,999 $3.34 25,000 to 25,999 $3.31 26,000 to 26,999 $3.26 27,000 to 27,999 $3.20 28,000 to 28,999 $3.15 29,000 to 29,999 $3.09 30,000 to 30,999 $3.04 31,000 to 31,999 $3.01 32,000 to 32,999 $2.97 33,000 to 33,999 $2.94 34,000 to 34,999 $2.90 35,000 to 35,999 $2.87 36,000 to 36,999 $2.88 37,000 to 37,999 $2.89 38,000 to 38,999 $2.89 39,000 to 39,000 $2.90 40,000 to 40,999 $2.91 41,000 to 41,999 $2.97 42,000 to 42,999 $3.03 43,000 to 43,999 $3.10 44,000 to 44,999 $3.16 45,000 to 45,999 $3.22 46,000 to 46,999 $3.34 47,000 to 47,999 $3.46 48,000 to 48,999 $3.59 49,000 to 49,999 $3.71 50,000 to 50,999 $3.83 51,000 to 51,999 $4.02 52,000 to 52,999 $4.21 53,000 to 53,999 $4.40 54,000 to 54,999 $4.59 55,000 to 55,999 $4.78 56,000 to 56,999 $5.04 57,000 to 57,999 $5.30 58,000 to 58,999 $5.55 59,000 to 60,000 $5.81 The cost per 1,000 pounds does not rise evenly due to the formula incorporating differential effects from the types of * wheel configuration used in association with specific weight levels 5 6