REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  January  10, 2017
CATEGORY:  Consent - Public Works-18.

SUBJECT:

Fall River Mills Airport - Entitlement Transfer

Supervisorial District No. :  3

DEPARTMENT CONTACT:  Pat Minturn, Public Works Director, (530) 225-5661

STAFF REPORT APPROVED BY:  Pat Minturn, Public Works Director

RECOMMENDATION

Approve and authorize the Chairman to sign an “Agreement for Transfer of Entitlements,” Federal Aviation Administration Form 5100-110, directing $150,000 in Fiscal Year 2014 airport development grant eligibility to Redding Municipal Airport.

SUMMARY

A transfer of grant eligibility is proposed from Fall River Mills Airport to Redding Municipal Airport.

DISCUSSION

The Federal Aviation Administration (FAA) provides development grants to local airports through the Airport Improvement Program (AIP). Fall River Mills Airport (FRM) has received approximately $10,000,000 in AIP grants over the last fifteen years.  The AIP grants were matched with Cal-aeronautics grants, County funds and local contributions.  These funds were used to extend the runway and to reconstruct the taxiway, hangars, fueling and landside facilities.  County Roads contributed through the realignment of Reynolds Road.

The next capital project candidate at FRM is a $950,000 runway resurfacing project. Last year, FAA staff indicated that this could be funded with a single large AIP grant. The County was to match the AIP grant by resurfacing the FRM access road using Road funds. FAA subsequently distanced themselves from that proposal.  The current FRM fund balance is $7,562.  A fuel shipment will soon be invoiced.  A large capital match is not feasible at this time.

FRM routinely receives $150,000 per year in programmatic grants. A 10% match is required. Funds may accumulate for up to 3 years. FRM has accumulated three of these grants and one is about to lapse. The Board may elect to transfer that entitlement to another airport. Redding Municipal Airport is proposed.

ALTERNATIVES

The Board may decline to transfer the entitlement.  The entitlement would lapse.  The Board may elect to curtail discretionary services at FRM and/or provide general fund resources to facilitate future capital projects. 

OTHER AGENCY INVOLVEMENT

The Redding Airport Manager and FAA administrators have been involved and support the transfer.  County Counsel has approved the agreement as to form. The County Administrative Office has reviewed this recommendation.

FINANCING

Adequate resources to operate FRM are included in the Adopted FY 2016/17 FRM budget.  FRM is financially self-supporting.  Revenues are derived from hangar leases, fuel sales and an annual $10,000 California Aeronautics entitlement.  Significant expenses include fuel, maintenance and insurance.  Revenues and expenses for the last three fiscal years are shown on Attachment A.  There is no General Fund impact.