December 8, 2015 

VIA EMAIL, FACSIMILE, and US MAIL 

Randall S. Fiertz 

Director, Airport Compliance and Management Analysis 

Federal Aviation Administration 

800 Independence Ave., SW 

Washington, DC 20591 

Email: fiertz@faa.gov, randall.fiertz@faa.gov 

Facsimile: (202) 267-5257 

RE:City of Concord, California Response and Action Plan as to FAA Policy Change 79 FR 

66282-01, Docket FAA-2013-0988 dated November 25,2015 ("FAA Policy Change") 

Dear Mr. Fiertz: 

The City of Concord, California ("City") voters adopted a local revenue measure in November of 

2010 and extended that tax in November 2014 ("Measure Q"). Measure Q established a general 

transaction and use tax ("sales tax") of 0.5% and is codified at Title 3 (Revenue and Finance), 

Chapter 3. 15 (Taxation) Article V (Transactions and Use Tax), Sections 3.15.360 through 

3.15.500 of the Concord (California) Municipal Code. 

While the City has not yet fully analyzed the validity of the FAA Policy Change, to the extent 

that it does apply, that Measure Q imposed a sales tax on jet fuel, and that such taxes have been 

and/or will be collected and actually paid to the City, the City's response and action plan is as 

follows: 

1. Airport Identification. A portion of Buchanan Field Airport is located in Concord, 

California, while a portion is located in Contra Costa County, outside of Concord City limits. 

Flight paths are over the City, and the Airport Overlay District of the City is subject to the 

Contra Costa County airport land use compatibility plan (ALUCP) adopted by the Contra 

Costa County airport land use commission (ALUC). The City neither owns nor operates 

Buchanan Field Airport. The City is informed, but has not confirmed, that Buchanan Field 

Airport has applied for Federal funding under the Airport Improvement Program and has 

thereby signed a contract assuring that local government taxes on jet fuel will be used for 

specified purposes. Should this not be the case, then the FAA Policy Change is inapplicable 

' I Cll\llllo <II olron (fdorg • 1 """ 11\t f((>nund o rg 
g

g

g

revenue derived from jet fuel from other taxable sales. Consequently, it is presently 

impossible for Concord to determine if any sales tax is derived from sales of jet fuel. It is 

also difficult to estimate the portion of general sales tax revenues derived from jet fuel 

because of the confidential nature of taxpayer data and other logistical problems. In addition, 

any estimate is subject to volatility based on the fluctuating price of jet fuel and other 

calculations. With those limitations in mind, at present, City estimates that no portion of 

City's affected general sales tax revenues is derived from jet fuel. 

3. City Expenditures in Support of Buchanan Field Aimort. City provides extensive services to 

the Buchanan Field Airport. Based on the information currently available City believes that 

it spends considerably more on supporting Buchanan Field Airpmt than the relevant sales tax 

revenue estimated to be derived from jet fuel. City's expenditures on airport capital and 

operating costs include, but are not limited to: 

o Public safety services 

o Access to and from the airports, including streets and roads 

o Infrastructure, including sewer 

4. Confirmation of Expenditures. City wishes to take advantage of the transition period from 

now until December 8. 2017 that the FAA has offered to achieve compliance with the ruling. 

We anticipate that creating an internal compliance process will take some time because, for 

the reasons described above, developing a tracking system for discrete information on jet fuel 

tax revenues will be complex and extensive. Over the next two years, City intends to 

confirm that it complies with the FAA Policy Change based on its expenditures of impacted 

sales tax revenues on capital and operating costs for Buchanan Field Airport. City will 

therefore continue to refine its estimates of both relevant sales tax revenue and expenditures 

on capital and operating costs for Buchanan Field Airport. If, contrary to current 

expectations, City determines that its expenditures on airport capital and operating costs do 

not exceed sales tax revenues derived from jet fuel, it will consider legislative solutions as 

necessary. If legislative changes are necessary. as a general tax, voter approval would be 

required to amend the ordinance imposing the tax. 

5. Reservation of Rights. Notwithstanding anything in this Jetter to the contrary, City reserves 

the right to contest the validity and/or applicability of the FAA Policy Change, and to pursue 

any and all actions, whether in law or equity, as City determines necessary or desirable. 
cc: Valerie J. Barone, City Manager 

Brian M. Libow, Interim City Attorney 

James T. Brown, Finance Management, FAA (James.T.Brown@faa.gov) 

Jay Chamberlain. Department of Finance (Jay.Chan1berlain@dofca.gov)