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Status: Closed — this petition is no longer accepting signatures.

EDC AIRPORT LEASE RATES

EDC AIRPORT LEASE RATES

Closed — 68 supporters Verified

Final supporters

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Michael B.
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Audrey B.
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Jason B.
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Tim S.
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Hal S.
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Dennis G.
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Don N.
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+58 more
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Started by Scott Herring 7 years, 2 months ago

Don Ashton, CAO

County of El Dorado

360 Fair Lane

Placerville, CA 95667

July 12, 2019

Dear Mr. Ashton,

Our large group of property owners are writing you to formally request an opportunity to have a discussion with County Supervisors to reconsider the rates for hangar and ground rentals at both Placerville and Georgetown Airports.

The substantial increases in lease rentals at both El Dorado County managed airports recently came to the attention of the majority of hangar owners. According to the majority of owners, this rate increase was not properly announced. Most of the large hangar owners or lessees were not made aware of rate changes that recently occurred. In some cases, existing leases that are still in place were bypassed. In other cases, hangars are not covered by leases even though occupants have requested for years that leases be finalized. Those who possess leases, appear to have been bypassed without the contractual mutual agreement and written consent.

A substantial number of hangar owner lessees are very unhappy and believe that the County is not and has not followed contract law, the Brown Act, or given due notice to proposed rate changes. The County of El Dorado has not had any problems finding or notifying hangar lessees when it comes time to pay tax bills, aircraft ownership taxes, possessory interest taxes, rent notices or insurance issues. It is quite surprising owners could not be notified that rents would be nearly doubled.

We believe these rate increases are excessive and already has led to devaluation of our hangars (one hangar in Georgetown was sold two years ago for $35,000 and the most recent sold in the low $20s—for the same type of hangar). Attached is a summary of what other airports are charging for ground leases. You will notice that El Dorado County is unreasonably higher when compared to similar jurisdictions. Devaluation of hangars will lead to reduced tax income for the county.

These high costs may not only cause businesses at both airports to lay off employees and leave the county, they may also cause many aircraft and hangar owners to find another (far less expensive) home for their aircrafts.

Keeping these airports open and operating is necessary for the safety of our region and all residents. These airports become staging areas for fire and other emergency crews during emergency situations. Pricing the property owners out of the airports could severely impact the sustainability of these airports.

Title VI of the Civil Rights Act of 1964 and Part 21, Title 49 of the Code of Federal Regulations; “and to assure to all operators the availability of airport property on fair and reasonable terms and without discrimination”.

In determining reasonableness, what are the lease fees being used for and what cost benefit analysis has been done? Why does the County need fulltime benefitted employees sitting at the airport (Placerville only)? What responsibilities justify the costs of the positions? What other options have been explored? Other airports are using a single source contract for management and maintenance services to private companies. Has this been discussed? In some cases, other airports have given responsibilities for some maintenance to the pilot associations after establishing nonprofit 501(3)c status. Is this last option up for discussion?

Losing locally based aircraft and businesses to other airports with fair lease rates will have a negative effect on county tax income. The county will also potentially lose income tax from reduced fuel sales and aircraft property taxes.

In summary:

  • According to county policy, hangar owners should have land use agreements (contracts). Many hangar owners do not currently have a contract (fees are annually unknown). Multiple hangar owners have repeatedly asked for lease agreements and have not received them. Those who currently have lease agreements (written contracts) are being billed far above what the original agreement (contracts) state.
  • Ground lease costs are excessive when compared to similar airport jurisdictions (see attached).
  • There was not a good faith effort to contact hangar owners to inform them of the Board’s agenda for possible rate increases. The county has contact information for all hangar owners (we all receive invoices). The lack of good faith effort to contact property owners regarding policy change or rate increases does not align with Policy Number F-10, “Title 49 of the Code of Federal Regulations; and to assure to all operators the availability of airport property on fair and reasonable terms and without discrimination.”
  • The property owners (tax payers) would like to see the written justification (numbers and sources) for the rate increases that were voted on. Our group would also like to see the transparency of where our lease taxes are going (hangars are paid for and property taxes are also paid). Is there a breakdown of where property taxes are going and where the lease taxes are going? The rates imposed are not comparable to other airports in the area (see attachment).
  • Commercial businesses—the severe higher costs will affect whether they stay in business (and keep employees). This could have a negative impact affecting tax revenues for El Dorado County and possibly affect the airports to stay open in the future.

Property owners are asking for the following:

  • Rates to be returned to the original fees prior to the last two exorbitant increases. Review of similar airport fee structure would be appropriate (see attached).
  • Lease agreements (contracts) for every hangar owner at both airports, and for the County to adhere to the agreements (including agreements already in writing).
  • Good faith efforts to contact hangar owners from both airports to inform them of items on Board meeting agendas. The owners would like copies of all future agendas mailed to them (per the Brown Act). Emails would also be acceptable.
  • Provide locally sourced comparable information to all hangar owners, and an itemization of dollars spent with the lease taxes. Consideration of alternate management methodologies including private management service contractors.
  • Provide us (property owners) the opportunity to discuss this at an upcoming Board meeting.

Adherence with hangar owner requests will help ensure community safety, eliminate the possible foreclosure of businesses, the loss of jobs, and loss of tax revenue for the county and state. Better communication with hangar owners on policy change and taxes will greatly improve relations within the county. Ensuring viable sustainability of keeping the airports open is in the community and county’s best interest.

Thank you for your consideration. The property owners look forward to your speedy response. You may respond to the selected spokespeople for the property owners:

Rick Todd [email protected]

530-409-2185

Gary Vorderbruggen (site manager) [email protected]

530-333-5988

Sincerely,

E signature of affected large hangar owners and airport users

Cc

El Dorado County Supervisor Dist 1

El Dorado County Supervisor Dist II

El Dorado County Supervisor Dist III

El Dorado County Supervisor Dist IV

El Dorado County Supervisor Dist V

Updates

July 22, 2019

The momentum behind this petition is proving that the County can no longer hide these shady lease hikes behind closed doors. Don Ashton and his administration thought they could quietly squeeze us for more cash while ignoring contract law but they underestimated our collective fury.

29 Comments

T
Tim Sullivan
7 years ago Featured

It is unbelievable how much the leases have gone up in the last two years. I would like to see the justification for the increases specifically the costs associated with running the airport(s). I don’t mind an increase but nearly 100% in two years is outrageous. Have not seen a renewed contract for the lease of my hanger in many many years. What good is owning a hanger if there is no lease. In the past the airports were an individual enterprise. Since that changed it appears that the income needed to run airport has it increased significantly. Why? Let’s see the budget vs income to justify the increases.

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Rick Atkins
7 years ago Featured

Owner Ragtime Aero 41 years here at placerville aiport Ragtime Aeros Lesse come for renewall in 2 years may have to move out of El Dorado Co. at the new rates

R
Robert Berti PLS PE
7 years ago Featured

I have had my plane at PVF since 1986. At that time Janet Atwood and her staff managed the airport reasonably well, including assistance at the fuel island. Now the prices are up and service is down. I too, would like to know how the decision was made to raise the rates as well as where the money goes. Both the lease fees and the personal property taxes. It's a head scratcher why we pay for the lease and then pay taxes on ground which is publicly owned and untaxed.

K
Karen Hernandez
7 years ago Featured

The FBO I often frequent in the north bay still charges 54$ per month and they have tremendous security w automatic access gate and several maintenance choices on the field, w an eatery!! I also didn’t appreciate that when we did the resurfacing last year, someone moved my airplane without permission (contrary to the advisement notice sent out!!) and then didn’t even have the record-keeping to inform me though I am conscientious to write my address on every single historical show date and on every check ever mailed to them!!!! We receive no services whatsoever at this airport except fuel. These rates are outrageous! Poorly managed!!

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Jim Hogan
7 years ago Featured

I am a thirty-eight year county resident and airport user. I purchased a T-hangar in the spring of 2018 and immediately notified the county of the ownership transfer - along with paying the transfer fee. I HAVE YET TO SEE A LEASE!

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Steven Foster
7 years ago Featured

Been on airport tenant since 1986.2 years ago hangar land use was going up 6-8% BUT went to $1078.from $728.00 (aprox). Kept asking why the high increase Never got answer told in no uncertain terms that's the way it is.

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Jason B
7 years ago

Unclear how the high rates are justified when compared to other nearby airports (especially with some of more services). Meeting agenda notifications are lacking for modern age. There must be a better model to make tenants aware of upcoming agendas and the significance of the topics that impact us. As a private piloting family we actively work to promote use of this airport and are proud of it. We wish to continue promoting aviation as a viable lifestyle to current and future generations. Arbitrary rates, like lease fees, are difficult to convince others of this. Aviation has its share of necessary expenses but please do not assume we are it all with deep pockets. We sacrifice elsewhere in our lives to afford what it takes to keep us flying safe and support businesses at this airport.

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Hal Stephens
7 years ago

Placerville Airport is just not the same as it was! Remembering the days of Janet, Dave and Brian who ran a very efficient airport at a reasonable cost to the aircraft owners for fuel, tiedown, hangars, etc. The ramp was full! It was sometimes difficult to locate a parking space. What a remarkable modification has now become the reality. Need I explain what the airport looks like today? As pilots and hangar owners we are stuck with exorbitant fees for fuel, lease, etc which are increasing without justification. I for one am ready to go back to the party of three managing and servicing the Placerville and Georgetown airports! We don't need a city team stripping the services while raising the rates. We do need more planes and pilots. With the costs increasing as they are, fewer folks can afford to fly which devalues the hangars and equipment in the hangars. Please stop this nonsense and get back to economic reality!