Management Audit of the Airports
Division
Airport Division
Audit
12/11/99
Role of Airport Commission and
8. Management and Policy Direction
of the Airports
- The County does not have a commonly shared vision
for the County’s airports and their future. This, combined with
the prospect of airport closures in the past has left some staff,
tenants, and Airports Commissioners uncertain over the future direction
of the facilities.
-
A review of the role and functions
of the Airports Commission has shown limitations to this body’s
effectiveness due to lack of clarity about their role and authority
and the absence of a formalized countywide long term plan guiding
development and operations of the airports.
-
The Board of Supervisors recently
directed staff to prepare a new master plan for the County airports
balancing financial self-sufficiency of the airports, the quality
of life of residents near the airports, the needs of the general
aviation community and the maintenance of adequate safety zones.
This process could be expanded to include a strategic planning process
so that a clear, agreed upon vision and linked goals and objectives
are established for the airports. Such a plan would clarify the
roles and authority of the Airports Commission and provide clear
guidance to Airports Division staff.
The Airports Division of the Roads &
Airports Department is headed by the Director of County Airport Operations
who reports to the Director of Roads and Airports. The Director of Roads
and Airports reports to the Board of Supervisors through the County
Executive.
In addition to these managers and the
Board of Supervisors, the Santa Clara County Code establishes a County
Airports Commission, comprised of seven members, one for each of the
five supervisorial districts and two appointed by two eligible supervisors
on a rotating basis (Chapter IX, § A6-100 et seq.). The Code requires
that three members represent the aviation community and four represent
the general public.
The function of the Commission is defined
in the Commission bylaws as serving as an advisory body to the County
Board of Supervisors. The County Code authorizes the following powers
and duties to the Commission:
-
To review and make recommendations
on any research studies funded under grants or otherwise, prior
to final considerations of the studies by the board
-
To be aware of airport land use
issues and provide input to the Airports Land Use Commission
-
To study, advise and make recommendations
to the Board of Supervisors and other county agencies concerning
cooperation with military airports and possible joint use arrangements
-
To assist in the implementation
and ongoing review of the county airports master plan
-
To provide a forum to facilitate
an exchange of ideas among all parties interested in county airports
-
To aid in the utilization of airport
property in order to provide maximum benefit to the citizens of
the county- recreation areas, parking, farming, etc.
-
To review, evaluate, study and
advise regarding technical developments such as safety, noise control
methods, navigation aids and ground support equipment
-
To review the appropriateness of
the airport system in meeting the needs of all portions of the aviation
community – such as private, business, recreational, agricultural
and training
-
To provide ongoing evaluation of
the impact of airports on the total transportation system, and to
establish and maintain open communication with the transportation
agency, transportation commission and the Airports Land Use Commission
(ALUC)
-
To explore workable ways to finance
improvements at airports
-
To study and make recommendations
regarding security at airports
-
To review and recommend airport
rules and regulations as proposed by the transportation agency
-
To study, advise and make recommendations
to the Board of Supervisors concerning Santa Clara County participation
in regional airport planning or operating authorities with special
emphasis on articulation with the City of San Jose.
The Code authorizes the Board of Supervisors,
the Transportation Agency, the Commission itself, or any combination
of these three entities to initiate projects for study and reporting.
Many of these key Commission roles, particularly
advising on matters of policy concerning the operations, long-term financing,
capital improvements and the acquisition of land or airspace for the
county airport system, have not been adequately performed, as demonstrated
by the findings in the previous sections of this report. Part of the
reason for this is a lack of clarity about the Commission’s role and
authority. More critical has been the absence of a long term county-wide
vision for the airports and a business plan to implement the vision.
To assess the Airports Commission’s success
in performing its functions and duties as delineated in the County Code,
the Commission’s bylaws were reviewed, interviews were conducted with
commissioners who wished to be interviewed (all commissioners were contacted
for this purpose; four chose to be interviewed), Commission meetings
were attended, and Commission agendas and minutes were reviewed for
the last two years. Based on this input and these observations, it was
concluded that the Airports Commission is hampered in performing its
functions due to a lack of clarity over the role and future of the airports,
lack of clarity over the role and authority of the Commission itself,
and the lack of agreed upon staff reporting procedures and management
information reports provided to the Commission.
Commission meeting minutes showed that
commissioners have frequently requested information from staff regarding
income producing plans for the airports but have not received plans
in this area. Staff financial reports and other information presented
to the Commission has not been responsive to some commissioners’ requests
for detailed measures of performance. Spreadsheet reports showing actual
revenues and expenditures compared to budget and compared to the previous
year are not routinely reported. Similarly, comparison data on tenant
occupancy rates is not provided in an easy to understand format. Besides
the need for clarifying the Airports Commission’s role, procedures,
and management information reports, the viability of the County airports
has been hampered by the absence of a long term vision and business
plan. Airports Division staff hasn’t presented an income producing plan
to the Commission for example partly due to the absence of a County
or Departmental policy regarding new income generation at the airports.
There has been little formal long term
planning for the airports in recent years resulting in a lack of action
in many key areas related to the operations and financial viability
of the facilities. While such a process should involve the Airports
Commission, the Commission alone should not conduct this process. What
is needed is a formalized planning process that involves all key County
airport stakeholders including the Board of Supervisors, the Airports
Commission, Roads & Airports Department executive management, County
administration, the pilot and general aviation community, residents
in the airport areas, representatives of jurisdictions in which County
or other airports are located including the City of Palo Alto, City
of San Jose and Moffet Field, and the public in general.
The last long-term plan conducted for
the County airports was the Master Plan completed in 1982. The Master
Plan focused on the physical facilities and not key factors concerning
the role of the airports and the business side of operating them. While
appropriate for the time, the Plan is not current and does not incorporate
many significant changes that have taken place since then. For example,
the study forecast significant growth in the number of County-wide operations
(take-offs and landings) that has not materialized. The 1982 study did
incorporate public input through a series of public workshops. Public
concerns over noise and safety at the airports were included in the
Plan’s recommendations.
An update to the Master Plan at this
time is needed but should be conducted with the various stakeholders
identified above and should not be limited to physical development of
the facilities only. Instead, the facility master plan should be prepared
after first developing a strategic plan for the County airports.
Some of the elements of a strategic plan
were included in a set of principles for guiding the airport master
plan process adopted by the Board of Supervisors in April 1999. Specifically,
the Board of Supervisors took the following actions:
-
Adopted principles to guide the
airport master planning process
-
Directed the Administration to
prepare a Request for Qualifications (RFQ) for consultant services
to prepare an update of the County Airport System Master Plan and
related environmental analysis
-
Directed the Harvey M. Rose Accountancy
Corporation to prepare a financial analysis of the Airport Enterprise
Fund
-
Directed the Administration to
explore the negotiation of a Memorandum of Understanding between
the County and the City of San Jose on a County airport system-wide
relocation plan for displaced general aviation aircraft at San Jose
International Airport
-
Appointed Supervisor Gage to lead
a County team in negotiations with the City of San Jose in meetings
with the various stakeholders
-
Directed the Administration to
prepare a report identifying the costs related to these actions
and options to fund these costs
The adopted guiding principles call for
striking a balance among the following: utilization of a financially
self-sufficient airport enterprise fund; the protection of the quality
of life of residents living near the airport, the needs of the general
aviation community, and the maintenance of adequate safety zones around
the airports.
With some modification of the Board’s
adopted approach to airport master planning, it could be integrated
with a strategic planning process, which should include the following
steps.
Table 8.1
Recommended Strategic Planning Steps
Santa Clara County Airports
-
Clarify organizational mission, mandates, and
values
All mandates controlling the airports should
be identified as should the core mission of the Airports Division.
Key stakeholders should be identified and their input solicited
regarding their needs from the Airports Division. Goals and
objectives should be established for successfully accomplishing
the Division’s mission.
-
Establish a vision of the organization for the
future
After agreeing on the mission of the current
organization, a vision for its future, or the goal for the Division
over the next five years, should be developed.
-
Assess external opportunities and impediments
This step would identify entities and individuals
outside the Department and immediate community that could positively
or negatively impact the Airports Division’s ability to provide
it services and accomplish its mission. Examples would include
the Federal Aviation Administration (FAA), the City of San Jose
(and planned changes at San Jose International Airport), the
City of Palo Alto, and others.
-
Assess internal strengths and weaknesses
This assessment would focus on the Department’s
and Airports Division’s resources, performance, and productivity.
This review should be aimed at determining how well the Division
is fulfilling its mission and how effectively its resources
are being used to accomplish its mission. For example, construction
of hangars, as recommended in Section 3, and leasing of airport
property for non-aviation commercial use, as recommended in
Section 5,would enable the Airports Division to improve its
financial position and overall performance by generating more
income for the organization.
-
Identify strategic issues facing the organization
Fundamental questions regarding the Airports
Division should be addressed including the alignment of its
mission, staff mix, allocation of staff time, client mix, service
levels, resource allocation, and management.
-
Formulate strategies and action plans to manage
the issues
Alternative approaches to achieving the Airports
Division’s mission and future vision should be identified and
analyzed and the best alternatives selected for implementation.
A multi-year business action plan, with specific goals and objectives,
should then be developed and a shorter term (6 months to one
year) business work plan, with specific tasks to be performed
to accomplish the goals and objectives, should be developed.
Both of these action plans should include clearly defined performance
measures for all key goals, objectives, and tasks. The plan
should address the roles, responsibilities, and authority of
the key actors in implementing the action including Airports
Division staff, Airports Commission, and the Board of Supervisors.
-
Prepare a revised master plan for the airport
facilities
Consistent with the results of the strategic
planning steps above, a master plan should be prepared, focusing
on the changes needed in the layout and facilities at the three
airports and addressing areas such as projected growth, possible
reductions or increases in the number of County airports, coordination
with other airports in the County, and related matters.
Draft versions of the County airports
strategic plan and linked master plan should be reviewed by the Roads
& Airports Department, the Airports Commission and the Board of
Supervisors before it is finalized. When finally adopted, key measurements
should be selected for ongoing monitoring of the Division’s success
in meeting its mission and goals and objectives.
The benefits of implementing a strategic
planning/master planning process would include clarifying the mission,
vision and goal and objectives of the organization. This would provide
an agreed upon framework for the Board of Supervisors, the Airports
Commission, the Airports Division and other Roads & Airports Department
staff to function and perform their respective roles. With clearly defined
multi-year goals and objectives and an agreed upon performance measurement
system, Roads & Airports Department management, the Airports Commission,
and the Board of Supervisors would all be measuring Airports Division
activity in a consistent manner.
Recommendations
It is recommended that the Board of Supervisors:
-
Direct Roads & Airports Department
management to integrate the proposed master plan update with a
strategic planning process to involve all key County airports
stakeholders and to define key issues such as the Airports Division’s
mission, vision for the future, goals and objectives, external
opportunities and impediments, internal strengths and weaknesses,
and to develop a plan for accomplishing its mission, goals, and
objectives over the next five years;
8.2 Direct Roads & Airports
Department management to prepare shorter term (6 months to two
years) business plans with specific goals, objectives, and tasks
in conjunction with the five year strategic plan;
-
Require Roads & Airports
Department management to prepare key measures of Airports Division
performance consistent with the strategic plan and the shorter
term business plans, to be reported to the Airports Commission
and Board of Supervisors on a regular basis;
-
Require the draft strategic plan
to be presented to the Airports Commission the Housing, Land Use,
Environmental, and Transportation Committee, and the full Board
of Supervisors for review prior to finalization.
