TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Mukesh (Mookie) Patel
SUBJECT: See Below DATE: June 1, 2026
Approved
Date:
6/10/26
COUNCIL DISTRICT: Citywide
SUBJECT: Amendment to the Airport Fees and Charges Rate.
RECOMMENDATION
Adopt a resolution amending Airport fees, rates, and charges, and repealing Resolution No. 79269 and to include the establishment of General Aviation landing fees.
SUMMARY AND OUTCOME
The proposed rate resolution will modify and update authorized San José Mineta International Airport (Airport) fees and charges to provide cost recovery or establish market rates for appropriate Airport programs and services. The proposed amendments include updates to aircraft parking fees, ground transportation definitions and charges, non-airline terminal rates, miscellaneous accounting fees, and the establishment of GA landing fees for certain aircraft operations.
BACKGROUND
The updates to the consolidated Airport Rate Resolution No. 79269 (Resolution) will allow cost recovery of services and market rate collection of revenue associated with the increased use of the airfield and continued use of roadways, terminal, and other airport property based on current market conditions.
Periodically, the Airport Department reviews the Resolution to determine the inclusion of new service fees and/or charges, address changed business practices and costs, review market rates, or clarify fee methodologies. The last revision to the Airport Rate Resolution was approved by the City Council on September 20, 2019. The recommended revisions to the Resolution adjust certain fees to reflect increased expenditures, establish fees for new and evolving services, align with current market COUNCIL AGENDA: 6/23/26
FILE: 26-746
ITEM: 2.8
HONORABLE MAYOR AND CITY COUNCIL
June 1, 2026
Subject: Amendment to Airport Rate Resolution No. 79269 to Update Airport Rate Procedures and Methodologies
rates and costs, and incorporate technical corrections to the language and cost- recovery methodologies.
Currently, commercial airlines operating at the Airport pay landing fees that support airfield operating and maintenance costs. Most GA operators do not currently pay landing fees and instead contribute through fuel flowage fees remitted by Fixed Base Operators and Specialized Aviation Service Operators. Since Fiscal Year 2019-2020, the Airport has experienced significant increases in airfield operating and maintenance costs. In addition, the Airport has a major need for airfield capital improvement projects over the next five years. These increased costs prompted the Airport to reevaluate its airfield cost recovery methodology and fee structure.
Airport staff determined that implementing a GA landing fee would establish a more equitable distribution of airfield costs among users and provide a more sustainable cost recovery mechanism for ongoing airfield operations, maintenance, and capital investment needs. The Rate Resolution has been amended accordingly.
ANALYSIS
The Airport recommends revisions to the existing definitions and fees contained in the Airport Rate Resolution. The proposed changes are included in the red-lined version of the current Resolution. The changes to the Resolution include updates to the following:
1. Increase fee ranges across various categories to align with increased operating costs and market rates;
2. Update definitions and calculations to be consistent with other City-approved definitions; and
3. Establish rate provisions for landing fees for all GA aircraft 12,500 pounds maximum gross landing weight or greater which were not previously implemented.
City staff conducted an extensive analysis, comparing the current fee structure to that of other airports across various categories, including the neighboring Bay Area airports, similarly sized California airports, and select national airports. This research validated that implementing a GA landing fee in conjunction with existing fuel flowage fees is consistent with prevailing industry standards for responsibly managing airfield expenses. The primary purpose of this strategic increase is to ensure that all GA users contribute equitably to the significant costs associated with operating, maintaining, and continually improving the airfield infrastructure. This shift supports long-term airfield sustainability. The proposed GA landing fee would apply to aircraft with a maximum gross landing weight of 12,500 pounds or greater and would initially be established at the Fiscal Year 2025-2026 itinerant landing fee rate of $7.07 per 1,000 pounds of
HONORABLE MAYOR AND CITY COUNCIL
June 1, 2026
Subject: Amendment to Airport Rate Resolution No. 79269 to Update Airport Rate Procedures and Methodologies
maximum gross landing weight. The Airport selected this methodology to align the GA landing fee structure with the existing airfield rate methodology currently applied to commercial operators.
Aircraft below the 12,500-pound threshold, government and military aircraft, and certified flight training operations would be exempt from the fee. The threshold was selected to focus the fee on larger GA operators with greater airfield utilization while minimizing impacts on smaller recreational users. These exemptions are intended to reduce administrative burden, support essential governmental and training operations, and maintain consistency with common industry practices. Furthermore, this landing fee will be subject to an annual review and adjustment based on the rates and charges to ensure it remains reflective of ongoing operational costs. The Airport anticipates that this new fee collection will provide an additional $3.9 million in annual airfield revenue, ensuring all GA users contribute to the costs of operating, maintaining, and improving the airfield, and establishing a sustainable cost-recovery mechanism aligned with industry standards.
EVALUATION AND FOLLOW-UP
Airport staff will monitor and manage the items in the Airport Rate Resolution to ensure changes in market rates, costs, and changed business practices are incorporated to allow cost recovery of services and market rate collection of revenue associated with increased use of Airport terminals, roadways, and airfield. No additional follow-up action with the City Council is expected at this time.
FISCAL IMPACTS
The rates identified in the Resolution are set at levels to support the achievement of 100% cost-recovery or establish rates at current market value as appropriate for the specific program. City Council adoption of the new rates will allow the Airport to incorporate additional fee revenue into the Airport Revenue Fund to offset program costs.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office and the City Manager’s Budget Office.
HONORABLE MAYOR AND CITY COUNCIL
June 1, 2026
Subject: Amendment to Airport Rate Resolution No. 79269 to Update Airport Rate Procedures and Methodologies
PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the June 23, 2026 City Council meeting.
Notification regarding the Airport's intent to implement landing fees was formally disseminated to all Airport GA tenants on October 14, 2025. This correspondence served as a formal notification to the GA tenants of the Airport’s intent to charge the GA community landing fees, and the notification included an invitation to the two public outreach sessions. The GA tenants were invited to participate and provide feedback and input during the subsequent outreach sessions conducted by the Airport.
The Airport conducted two formal public outreach sessions for the GA community on October 21, 2025, and October 24, 2025. These sessions were held to describe the details of the new landing fee program and to communicate the Airport's plan to select a third-party company to manage the collection of the GA landing fees. The attendees included members of the GA community, along with representatives from the Fixed Base Operators and the Specialized Aviation Service Operators based at the Airport.
BOARD COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
The Airport's comprehensive strategy, encompassing the updates to the Rate Resolution with the inclusion of new fees, including the new GA landing fees, was formally presented to the Airport Commission on November 10, 2025. No recommendations were received from the Airport Commission during this presentation.
CEQA
Not a Project, File No. PP17-005, Adjustment to Fees, Rates and Fares without changes to or expansion of services.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
Mukesh (Mookie) Patel
Director of Aviation
For questions, please contact Matthew Kazmierczak, Division Manager, Airport Department at [email protected], 408.392.3640.