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SR-207-006 (2) F:\atty\muni\strpts\mjm\landingfeesstaffreport.doc City Council Meeting: June 10, 2003 Santa Monica, California TO: Mayor and Council Members FROM: City Staff SUBJECT: Second 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 Adoption of Resolution Setting Landing Fees at the Airport INTRODUCTION This report recommends that the City Council adopt on second reading the attached ordinance amending Municipal Code Section 10.04.06.100 relating to Airport landing fees and also adopt the attached resolution setting landing fee amounts based on aircraft weight. The schedule of landing fee amounts was presented to the City Council at the May 13, 2003 meeting. BACKGROUND 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, including assessment of impacts of landings. PCI recommended that the City establish an Airside Pavement Maintenance Program funded by weight-based landing fees. 1 During their February 25, 2002 meeting, the Airport Commission received a briefing by PCI regarding the methodology used to develop the proposed weight-based landing fees. After thoughtful discussion and deliberation, the Airport Commission voted unanimously to support the proposal and requested that staff forward the proposal to the City Council for consideration. DISCUSSION 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. As established in the PCI study, the proposed weight-based landing fees reflect the damage to runway and the taxiways caused by heavier aircraft using the facilities. Adoption of the proposed fees would help fulfill the City’s objective of funding Airport operation and maintenance through user fees. BUDGET/FINANCIAL IMPACT: It is anticipated that adoption of the attached resolution will result in the City’s collecting about $532,000 annually in landing fees. The impact of this fee increase is included in the Proposed FY 2003-04 Budget. 2 RECOMMENDATION: It is recommended that the City Council adopt the attached ordinance and resolution. Submitted by: Jeff Mathieu, Director of Resource Management Marsha Moutrie, City Attorney Martin Tachiki, Deputy City Attorney Bob Trimborn, Airport Manager Rod Merl, Senior Administrative Analyst Attachment A: Proposed Weight Based Landing Fee Attachment B: Fee Resolution – Airport Landing Fees Attachment C: Ordinance Related to Landing Fees 3