December 8, 2015 Federal Aviation Administration (by mail and fax (202) 267-5257) 

Attention: Director, Airport Compliance and Management Analysis 

800 Independence Avenue SW 

Washington, DC 20591 

Subject: Action Plan Submission Pursuant to FAA Policy and Procedures Concerning the Use of Airport 

Revenue (79 Fed. Reg 66282-01, November 7, 2014). 

Dear Sir/Madam: 

following serves as the action plan for Napa County to convey intent of compliance with the FAA ruling 

related to sales tax revenue on aviation fuels. Napa County owns and operates one airport, Napa County Airport 

(KAPC) located at 2030 Airport Road, Napa, CA 94558. 

This information is provided based on our understanding of the components necessary to comply with the 

aforementioned FAA ruling. The information includes the background on the process for adopting and amending 

these sales tax ordinances, the County's plan to work within the cmTent requirements of the existing local 

ordinances and the FAA ruling, and the status of Napa County's current rep01ting requirements and tracking 

systems for specific information on aviation fuel tax revenues. We have also included information regarding the 

anticipated transition period required to complete these steps. CUJ-rent Local Sales Taxes Collected on Jet Fuel Sales 

Measure A was passed by Napa County voters in March 1998, creating the Napa Flood Protection and Watershed 

Improvement Expenditure Plan, a Financial Oversight Committee, and a Technical Advisory Panel; and 

establishing a half-cent sales tax to fund the local share of projects in Napa County. Measure A includes specific 

approved projects and allows the funding of other projects to improve flood protection, water supply and the 

health of the watershed. All the Napa County governments involved in Measure A also signed a Joint Powers 

Agreement to spell out structure and responsibilities. 

Adopted Local Sales Tax Ordinance to be Collected on Jet Fuel Sales Starting July 1, 2018 

Measure Twas passed by Napa County voters in November 2012, establishing a half-cent sales tax to fund road 

repairs in the county and a portion of those funds is directed to Napa County for roads projects in the 

unincorporated area of Napa County. 

The California State Constitution requires sales tax measures like Measures A and T, as well as any amendments 

to an adopted measure, to be approved by two-thirds of the voters within the jurisdiction implementing the tax. 

Accordingly, it would take an affirmative vote of Napa County electorate to change either of these measures to 

amend the aforementioned restrictions on the use of these funds. Given the significant cost and unknown 

probability of success of amending either Measures A or T (collectively, the "Measures"), the discussion below 

lays out the plan our office has created in conjunction with staff from the Napa County Flood Control District and 

the Napa County Auditor-Controller's Officer to (1) track the proceeds from Measures A and T that are derived 
will need to be utilized within the FAA's regulations will not change; however, the limitations on the use of those 

funds and the entities which Napa County will have to work with to track and define appropriate expenditures 

with will change as of July 1, 2018. 

All parties have agreed to work together to track the sales tax revenue and set aside the requisite funds secured by 

these Measures in order to comply with both the FAA requirements and those within the language of the two 

Measures. Napa County is confident it has prQjects that will be appropriate expenditures within the relevant 

restrictions of the FAA and each oftl1e Measures. 

Statewide Sales Tax Increments 

In addition to locally imposed transaction and use tax rate, Napa County receives revenues derived from the state 

sales and use tax rates implemented since 1987. It is our understanding that the State of California has provided 

an action plan response as it relates to necessary steps for compliance with the FAA ruling. It is Napa County's 

plan to comply with final direction we receive from the FAA and the State of California on the use of those funds. 

Transition Period 

It is the intent of Napa County to comply with the requirements set forth by the FAA ruling. Napa County is 

already tracking the sales tax revenues secured by its Measures and is working with the other public entities 

referenced above to ensure these funds are regularly and fully accounted for as they are received. 

It is Napa County's intent to complete its transition during the allotted period and be in compliance by the 

December 8, 2017 deadline. 

Sincerely, 

Poll--

Steve Lederer 

Napa County Director of Public Works 

Cc: Congressman Mike Thompson 

Nancy Watt, Napa County Executive Officer 

Tracy Schulze, Napa County Auditor-Controller 

Martin Pehl, Napa County Airport Manager 

Rick Thornasser, Napa County Flood Control District Kate Miller, Executive Director of the Napa County Transportation and Planning Agency 

James Brown, FAA Finance Management Division Ciames.t.brown@faa.gov) 

Jay Chamberlain, Department of Finance (jay.chamberlain@dof.ca.gov)