To: Board of Supervisors
From: County Administrative Office
Agenda Section: Consent
SUBJECT:
title
Memorandum of Understanding between the County Administrative Office - Economic Development Division and the Department of Aviation for Project SOAR (Sourcing New Opportunities for new Airport Revenues)
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Authorize the County Administrative Office (CAO) - Economic Development Division to dedicate 30 hours per month of staff time to support the Department of Aviation through Project SOAR;
2. Approve the Economic Development Division to enter into a Memorandum of Understanding (MOU) for Project SOAR with the Department of Aviation; and
3. Direct staff to engage in discussions with municipal partners to explore conversations and activities designed to support Humboldt County’s airport system(s).
Body
SOURCE OF FUNDING:
Economic Development (1120)
Aviation Enterprise Fund (3530)
DISCUSSION:
Creating a financially independent airport and identifying opportunities to enhance airport operations, including the pursuit of marketing, leasing, and development opportunities for county owned airport property, will become increasing critical as our community navigates its way through the pandemic recovery.
Initiatives and activities which support self-sustaining and vibrant ports of entry into the county have been highlighted in your Board’s Strategic Framework. Moreover, the County of Humboldt’s Comprehensive Economic Development Strategy (CEDS), previously adopted and ratified by your Board in November of 2018, references air service and transportation as being critical components of Humboldt County’s economic strategy.
Because travel in and out of our community is an integral part of economic prosperity for residents, the County Administrative Office - Economic Development Division (CAO-Economic Development) and Department of Aviation have found it to be mutually beneficial to enter into a Memorandum of Understanding (MOU) for Project SOAR, which sets forth the administration of services to support the enhancement and improvement of economic autonomy and sustainability for Humboldt County’s airport system(s).
Through this MOU, CAO-Economic Development will provide up to 30 hours per month of staff time to support the Department of Aviation by providing marketing, branding, and promotional support, as well as commercial leasing and development assistance as described in Exhibit B. Scope of Services.
Although the cost for staff support will be incurred by CAO-Economic Development, the Department of Aviation has agreed to a schedule of fees for additional compensation payable to CAO-Economic Development for outcomes as defined in Exhibit A Schedule of Rates.
As airport facilities benefit all Humboldt County residents, staff recommends that your Board direct CAO-Economic Development to engage in discussions with municipal partners to explore additional ways in which all jurisdictions and stakeholders can contribute to conversations and activities designed to support Humboldt County’s airport system(s).
FINANCIAL IMPACT:
If approved, the Economic Development Division will provide the Department of Aviation with 30 hours of staff time per month or 360 hours annually. This contribution equates to $24,480 per year and will be paid out of the CAO-Economic Development budget (1120-275).
For work performed in excess of 30 hours per month or 360 hours annually, the Department of Aviation (3530-381) will reimburse CAO-Economic Development at the rate of $65 per hour, plus expenses (mileage, printing, supplies, etc.).
For fully executed commercial leases wherein CAO-Economic Development provided material guidance and assistance 2% of the total gross rental revenues of the first and initial term of the lease will be paid to CAO-Economic Development by the Department of Aviation.
For fully executed and completed development projects wherein CAO-Economic Development provided material guidance and assistance the Department of Aviation will pay CAO-Economic Development 2% of the total gross project revenues of the first term of the lease. Where no recurring revenue is generated, but where development of property has a onetime measurable and direct economic impact to the Department of Aviation, the Department of Aviation will pay a flat development fee equal to 1% of the project to CAO-Economic Development.
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by engaging in discussions of our regional economic future
OTHER AGENCY INVOLVEMENT:
County of Humboldt Department of Aviation
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Board Discretion
ATTACHMENTS:
MOU July 2021
PREVIOUS ACTION/REFERRAL:
Board Order No.: N/A
Meeting of: November 13, 2018
File No.: 18-1495