Agenda

Return

C. 12

To:	Board of Supervisors
From:	AIRPORTS COMMITTEE
Date:	August 14, 2018

Contra

Costa

County

Subject:

Recognition of the Economic Significance of the County Airports, Buchanan Field and Byron

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 08/14/2018

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

John Gioia, District I Supervisor

Contact:

Beth Lee, (925) 681-4200

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: August 14, 2018
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2018/462 recognizing the contributions of Buchanan Field Airport and Byron Airport to the aeronautical community and the local economy.

FISCAL IMPACT:

Continued growth of the County airports will have a positive effect on the local economy and the County’s General Fund.

BACKGROUND:

The County owns and operates two airports, Buchanan Field Airport in Concord and Byron Airport in Byron. In exchange for its financial support of public airports, the Federal Aviation Administration requires public airports to be as self-sufficient as possible. For that reason, operating the County’s airports is similar to operating a business (albeit a business that operates within a governmental framework). Revenue generated by ground leases, hangar rentals and usage fees pays for the airports’ operating expenses, including airport management, operations, and facility maintenance. In addition to being self-funded, airport operations benefit the entire County by contributing revenue to the County General Fund and to other public entities through possessory interest taxes, sales taxes, and other taxes.

In fiscal year 2015-2016, airport operations contributed approximately $2.77 million to the County General Fund, $1.2 million to local schools and $273,200 to other public entities. In addition to their contribution to the public good through tax revenue generation, the County airports benefit the local economy. In 2016, the County airports contributed to the local economy (in the form of direct and indirect impact) by generating approximately $106 million in total annual economic output, which includes 828 jobs, $8 million in state and local revenue, and $10.2 million in federal tax revenue.

These kind of results do not just happen. The County’s airports operate in a competitive marketplace in which airport users can choose among multiple airport options in the region. Not long ago, the County’s Airports Division embarked on a path to identify ways to retain existing, and attract new, business. Airport management convened a working group comprised of representatives of all airport stakeholders to develop a program to strengthen, diversity and grow the airports. The result, the Economic Development Incentive Program (EDIP), is a compilation of projects and programs that airport management is committed to carrying out. Among the strategic plans being undertaken as a result of the EDIP are the following:

Streamline the County’s development and entitlement process to best position the airports to react and behave more like a business when presented with development opportunities.

Operate premier facilities, including providing timely responses to facility maintenance and improvement needs.

Implement additional economic development initiatives, to more readily attract and retain tenants and businesses.

Optimize financial performance to increase and further diversify revenue base.

The Airports Division is now primed and ready to implement its economic development strategy. The airports’ approach is consistent with, and a precursor to, the Countywide economic development program. The attached resolution is in support of all of these efforts.

Nothing in this board order or the attached resolution may be construed as approval by the County or any other governmental entity, acting in its or their governmental capacity, of a development application.