ATraditionofStewardshipACommitmenttoDecember8,2015FederalAviationAdministration(bymailandfax(202)267-5257)Attention:Director,AirportComplianceandManagementAnalysis800IndependenceAvenueSWWashington,DC20591Depa1tmentofPublicWorks1195ThirdStreet,Suite101Napa,CA94559-3092www.countyofnapa.org/publicworksMain:(707)253-4351Fax:(707)253-4627StevenE.LedererDirectorSubject:ActionPlanSubmissionPursuanttoFAAPolicyandProceduresConcerningtheUseofAirportRevenue(79Fed.Reg66282-01,November7,2014).DearSir/Madam:followingservesastheactionplanforNapaCountytoconveyintentofcompliancewiththeFAArulingrelatedtosalestaxrevenueonaviationfuels.NapaCountyownsandoperatesoneairport,NapaCountyAirport(KAPC)locatedat2030AirportRoad,Napa,CA94558.ThisinformationisprovidedbasedonourunderstandingofthecomponentsnecessarytocomplywiththeaforementionedFAAruling.Theinformationincludesthebackgroundontheprocessforadoptingandamendingthesesalestaxordinances,theCounty'splantoworkwithinthecmTentrequirementsoftheexistinglocalordinancesandtheFAAruling,andthestatusofNapaCounty'scurrentrep01tingrequirementsandtrackingsystemsforspecificinformationonaviationfueltaxrevenues.Wehavealsoincludedinformationregardingtheanticipatedtransitionperiodrequiredtocompletethesesteps.CUJ-rentLocalSalesTaxesCollectedonJetFuelSalesMeasureAwaspassedbyNapaCountyvotersinMarch1998,creatingtheNapaFloodProtectionandWatershedImprovementExpenditurePlan,aFinancialOversightCommittee,andaTechnicalAdvisoryPanel;andestablishingahalf-centsalestaxtofundthelocalshareofprojectsinNapaCounty.MeasureAincludesspecificapprovedprojectsandallowsthefundingofotherprojectstoimprovefloodprotection,watersupplyandthehealthofthewatershed.AlltheNapaCountygovernmentsinvolvedinMeasureAalsosignedaJointPowersAgreementtospelloutstructureandresponsibilities.AdoptedLocalSalesTaxOrdinancetobeCollectedonJetFuelSalesStartingJuly1,2018MeasureTwaspassedbyNapaCountyvotersinNovember2012,establishingahalf-centsalestaxtofundroadrepairsinthecountyandaportionofthosefundsisdirectedtoNapaCountyforroadsprojectsintheunincorporatedareaofNapaCounty.TheCaliforniaStateConstitutionrequiressalestaxmeasureslikeMeasuresAandT,aswellasanyamendmentstoanadoptedmeasure,tobeapprovedbytwo-thirdsofthevoterswithinthejurisdictionimplementingthetax.Accordingly,itwouldtakeanaffirmativevoteofNapaCountyelectoratetochangeeitherofthesemeasurestoamendtheaforementionedrestrictionsontheuseofthesefunds.GiventhesignificantcostandunknownprobabilityofsuccessofamendingeitherMeasuresAorT(collectively,the"Measures"),thediscussionbelowlaysouttheplanourofficehascreatedinconjunctionwithstafffromtheNapaCountyFloodControlDistrictandtheNapaCountyAuditor-Controller'sOfficerto(1)tracktheproceedsfromMeasuresAandTthatarederivedfromsalesofjetfuel,and(2)ensuretheyarespentwithinthestricturesofMeasureAorMeasureTasappropriat.eandtheFAA'sregulation.'ReportingRequirementandTrackingSystemNapaCountyiscurrentlytrackingthesalesandusetaxrevenuesecuredfromthesaleofjetfuelattheNapaCountyAirportinordertocomplywiththeFAArulingrequirement.NapaCountyMeasureAgeneralsalestaxrevenuesderivedfromaviationfuelsalesisapproximately$35,000annually.MeasmeAexpiresJune30,2018andaccordinglyits0.5%salestaxwillnotbecollectedafterthattime.MeasureTbeginsimmediatelythereafteronJuly1,2018andwillsunsettwenty-five(25)yearslater.Sincethetwotaxes(MeasureAandMeasureT)areeach0.5%,butthetimeperiodforwhichtheywillbecollecteddonooverlap,thetotalpercentageoffundsthatwillneedtobeutilizedwithintheFAA'sregulationswillnotchange;however,thelimitationsontheuseofthosefundsandtheentitieswhichNapaCountywillhavetoworkwithtotrackanddefineappropriateexpenditureswithwillchangeasofJuly1,2018.AllpartieshaveagreedtoworktogethertotrackthesalestaxrevenueandsetasidetherequisitefundssecuredbytheseMeasuresinordertocomplywithboththeFAArequirementsandthosewithinthelanguageofthetwoMeasures.NapaCountyisconfidentithasprQjectsthatwillbeappropriateexpenditureswithintherelevantrestrictionsoftheFAAandeachoftl1eMeasures.StatewideSalesTaxIncrementsInadditiontolocallyimposedtransactionandusetaxrate,NapaCountyreceivesrevenuesderivedfromthestatesalesandusetaxratesimplementedsince1987.Itisourunderstanding thattheStateofCaliforniahasprovidedanactionplanresponseasitrelatestonecessarystepsforcompliancewiththeFAAruling.ItisNapaCounty'splantocomplywithfinaldirectionwereceivefromtheFAAandtheStateofCaliforniaontheuseofthosefunds.TransitionPeriodItistheintentofNapaCountytocomplywiththerequirementssetforthbytheFAAruling.NapaCountyisalreadytrackingthesalestaxrevenuessecuredbyitsMeasuresandisworkingwiththeotherpublicentitiesreferencedabovetoensurethesefundsareregularlyandfullyaccountedforastheyarereceived.ItisNapaCounty'sintenttocompleteitstransitionduringtheallottedperiodandbeincompliancebytheDecember8,2017deadline.Sincerely,Poll--SteveLedererNapaCountyDirectorofPublicWorksCc:CongressmanMikeThompsonNancyWatt,NapaCountyExecutiveOfficerTracySchulze,NapaCountyAuditor-ControllerMartinPehl,NapaCountyAirportManagerRickThornasser,NapaCountyFloodControlDistrictKateMiller,ExecutiveDirectoroftheNapaCountyTransportationandPlanningAgencyJamesBrown,FAAFinanceManagementDivisionCiames.t.brown@faa.gov)JayChamberlain,DepartmentofFinance(jay.chamberlain@dof.ca.gov)