F1. The occupancy rate for non-aviation ‘outside
storage areas’ properties is 63.7%, significantly lower
than other Monterey Regional Airport spaces.
F2. Monterey Regional Airport (MRA)
parking rates have not been adjusted in seven years and are losing potential
revenue for the airport.
F3. The availability of street parking in
the adjacent neighborhood is causing the airport to lose parking revenue.
F4. The possibility exists to redefine the
airport property as a “utility” district, potentially generating new revenue
streams.
F5. The airport’s north side property is a
valuable, income-producing asset contributing to airport operations.
F6. Most tenant leases are subject to CPI
(Consumer Price Index) rate increases. In some cases however,
tenants cannot raise their price point at the same rate and remain in business.
F7. MRA pays competitive-to-high salaries
for airport personnel, enabling employees to live on the
Monterey Peninsula.
F8. MRA is currently underutilized by area
residents, capturing only 40% of the passengers in its service
area.
F9. Increased airline activity at the
airport will increase revenue. Discussions with airlines, are currently
underway.
F10. The Airport District is
making a concerted effort to reach customers through local TV advertising and
has begun to use social media to promote its services.
F11. The cost of Board of
Directors elections can potentially be reduced by privatizing the election process.
R1. Dedicate adequate staff to oversee the
property management component of the airport’s revenue.
R2. Immediately evaluate non-aviation ‘outside
storage areas’ such as the areas occupied by the current
tree service tenants, to determine what can be done to encourage additional
tenants.
R3. Provide regular maintenance and
upgrades to the buildings that are located on the airport’s north side property, to keep them rentable and up to standards.
R4. Confirm that all airport property
rates are in line with local ‘market rent’ rates.
R5. Immediately research the potential of
redefining MRA as a utility district to generate new revenue streams.
R6. Evaluate the impact of raising parking
rates.
R7. Enter into further discussions with
the City of Monterey to regulate free street parking on the adjacent
city streets.
R8. Work with the local tourist and
hospitality industry (Monterey County Convention and Visitors Bureau) to expand
marketing of the area as a destination.
R9. Consider advertising with online
commercial real estate services (such as LoopNet) as a means of attracting tenants.
R10. Expand the use of social
media for marketing purposes.
R11. In terms of advertising,
continue to emphasize the traveler’s savings on time, gas, hotels, parking,
and traffic aggravation by flying from Monterey.
R12. Continue to work with
various airlines to pursue additional flight destinations.
R13. Immediately research the
potential cost savings of hiring private companies to administer airport Board
of Directors elections.
R14. Annually revisit
the question of using shared police services vs. in-house services.
Pursuant
to Penal Code Section 933.05, the Grand Jury requests a response to all
findings and recommendations
from the following governing body:
• Monterey Regional Airport Board of Directors
“FLY MONTEREY”THE MONTEREY REGIONAL AIRPORT: AN ANALYSIS OF OPERATING EXPENSES AND REVENUE OPPORTUNITIES
June 1, 2015
(11 pages)
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