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