Loading...
HomeMy WebLinkAbout2000-07-25; City Council; 15841; Evaluation Of Acquisition Of Palomar Airport’ I . fi 6 E % . . g Y d f s AB# 15,841 TITLE: Evaluation of Acquisition of DEPT Hi.= MTG. 7-2s- 40 McClellan-Palomar Airport CITY AlTY DEPT. RMlED iliE CITY MGR RECOMMENDED ACTION: Accept the Evahation of Acquisition of McClellan-Palomar Airport Report. I tern Explanation: In 1999, staff was assigned a City Council goal for fiscal year 1999-2000 to evaluate the acquisition of McClellan-Palomar Airport. In support of the goal staff has prepared an in depth report, shown as Exhibit 1, which addresses many of the pertinent issues that the Council would need to consider before taking further action toward acquisition, as well as issues which impact the City regardless of any interest in acquisition. In order to develop the report staff first interviewed City Council members to obtain clarification on the intent and expectations around the goal. The interviews revealed two primary goals for acquisition that were shared by all five Council members. These included: (1) control of land uses, and (2) improved operation of the airport. Other goals cited include, ensuring that funds earmarked for airport improvements are spent at McClellan-Palomar and implemented in a timely manner, generation of more revenue to the City, management of noise issues more effectively, and expansion of commercial service. In addition, the City Council asked staff to consider environmental issues and liabilities. Based on staffs findings, it is clear that through an acquisition of McClellan- Palomar Airport the City would achieve greater land use control than currently exists. However, while greater land use control could be achieved, staff has concluded that there are a number of factors that limit the City’s ability to influence or affect how the airport operates. In addition, other factors were identified that offset the benefits of airport ownership. It is staff’s opinion that acquisition of McClellan-Palomar Airport would not be prudent at this time; therefore, staff is recommending that Council accept the report that includes measures that provide the City Council with alternatives to address some of their concerns. Fiscal Impact: None. Exhibits: t C- - IQ I dTY OF CARLSBAD - AGENtfi BILL 1. Evaluation of Acquisition of McClellan-Palomar Airport Report (on file in the Office of the City Clerk) EVALUATION ofACOUISITION qf MCCLELLAN-PALOMAR AIRPORT REPORT April 3,200O EXECUTIVE SUMMARY In 1999 staff was assigned a City Council goal to evaluate the acquisition of McClellan- Palomar Airport. In support of the goal staff has prepared an in depth report which addresses many of the pertinent issues that the Council would need to consider before taking further action toward acquisition, as well as issues which impact the City regardless of any interest in acquisition. In order to develop the report staff first interviewed City Council members to obtain clarification on the intent and expectations around the goal. The interviews revealed two primary goals for acquisition that were shared by all five Council members. These included: (1) control of land uses, and (2) improved operation of the airport. Other goals cited include, ensuring that funds earmarked for airport improvements are spent at McClellan-Palomar and implemented in a timely manner, generation of more revenue to the City, management of noise issues more effectively, and expansion of commercial service. In addition the City Council asked staff to consider environmental issues and liabilities. Based on our findings, it is clear that through an acquisition of McClellan-Palomar Airport, the City would achieve greater land use control than currently exists. However, while greater land use control could be achieved, our research concluded that there are a number of factors that limit the City’s ability to influence or affect how the airport operates. In addition, other factors were identified that offset the benefits of airport ownership. These factors are included in the Conclusions and Recommendations section of the report. It is staffs opinion that acquisition of McClellan-Palomar Airport would not be prudent at this time; therefore, we are recommending City Council not take any further action on this matter. However staff has identified measures in the report that provide the City Council with alternatives to address some of their concerns. Finally, environmental concerns associated with the landfill beneath the airport and exacerbated by airport maintenance practices were identified. The significance of these issues and their relevance to the community, as well as recommendations for addressing them are included in the report. REPORT OUTLINE The report is divided into the following sections: I. How Airports Operate; II. San Diego County Airports Overview; III. McClellan-Palomar Airport - Land Use; IV. Economic Benefit of McClellan-Palomar Airport; V. Airport Financing; VI. McCellan- PalomarKounty Airports Sale or Lease; VII. McClellan-Palomar Airport Environmental Issues; VIII. Conclusions & Recommendations; IX. Exhibits: Exhibit 1 Total Impact of McClellan-Palomar Airport ; Exhibit 2 Airport Enterprise Fund; Exhibits 3- 15 Airport Noise. I. HOW AIRPORTS OPERATE Although each airport or system of airports in the United States is unique, most county and multi-government airport facilities function similarly. In most cases airports are overseen by a special district or authority, commission, special department of a city or county, or an advisory board. Authorities can be multi-purpose or aviation only, and are increasingly prevalent. An authority form of management is considered appropriate when: l A task or service is judged inappropriate to be performed by a private enterprise; l Large amounts of capital are needed; l Efficient management with initiative and business imagination is essential; l Long-range planning must be in the hands of competent business, financial, and professional technicians; l The task/service must be self-supporting; l The task/service must be free from political interference; l The scope of the task/service involves areas more extensive than the established geographic boundaries of state and local government. Whatever the operating entity, it is critical for the airport administration to be able to report directly and independently to the source of policy flow, and not be subordinated in another unit created for another purpose. Airport officials must plan, develop, operate and maintain airports so that they meet user’s requirements and owners level of quality. Administrators must also arrange financing for capital improvements and budget revenues from the various products so that costs can be equitably shared among the users and owners. Airports are usually divided into “air-side” and “land-side” areas for financing and accounting purposes. The air-side portion consists of areas upon which an aircraft can operate (runways, taxiways, aprons, and hangars). Land-side means terminals, automobile parking, airport oriented businesses, roads, or mass transit leading to the airport. The airport general manager is responsible for providing (or supervising the provision by others) of air-side and land-side products at the quality levels established by the policy source. For example, a major activity of the airport’s operations or administration office focuses on negotiating leases with concessionaires, landing fees with airlines, parking rates, and taxi-airport drop off fees. Essentially, airport administration provides tools, procedures and programs under which the airport’s management delivers, or supervises the delivery of the airports products and services. Sources of Revenue The most important product provided is air transportation. Carriers that wish to serve a particular community or region seek to lease space at the airport of their choice. They negotiate landing fees, the number of gates, space for ticket counters and offices, and assorted other fees with airport administrators. For example, some airport authorities 2 have individual lease agreements with several carriers. The rental fees charged them are calculated to ensure that the airport generates sufficient revenues to operate the airport on a break-even basis after paying debt service on all outstanding bonds; paying the costs of operation and maintenance; and making agreed-upon contributions to the capital reserve accounts. Under the “residual cost” formula established in the agreements, revenues from sources other than airline rentals and fees are credited against the airport’s total operating, maintenance, and capital outlay requirements to determine the amount the carriers will pay. Additional airfield and aviation revenues include ground and building rentals of sites, hangars, and facilities leased to other airport tenants including fixed base operations (FBO’s). There are also fuel flowage fees, and concession fees from in-flight catering services. Ground transportation and concession revenues typically come from pubic parking, employee parking, rental cars, food and beverage restaurants, as well as news and gift stores. Airport revenues are also derived from telephone, advertising, and taxi and limousine service. Over the past several years, airlines have been able to negotiate favorable deals for improved facilities at little cost to them. For example airport administration generally has the discretion to waive or reduce certain fees, offer free ticket-counter and baggage claim rental, and limit the cost of office space. However, one item that usually cannot be waived is landing fees. If management reduces one carrier’s fees, the other airline(s) generally will demand, and are entitled to the same treatment. Depending on the size and degree of cost/revenue control, some airports generate revenues predominantly from the rental of space, land or other facilities, rather than from landing fees and other operating charges. Airports can also be partially supported through city and county appropriations and/or dedicated taxes; however, most medium sized and large airports are able to turn a profit on their own and do not require local assistance. State governments have traditionally played a subordinate role in financing air facilities, but the federal government has played a primary role. When a decision is made to construct, improve or expand an airport, federal grants are nearly always involved, as are local funds and money from the airlines that stand to benefit from the change or improvement. The portion of airport revenue derived from federal aid bears an inverse relationship to the size of the airport. In other words, large airports receive significantly less funding on a percentage basis than do non-hub reliever airports and general aviation airports. This federal money comes from the Federal Aviation Administration’s (FM) Trust Fund. FAA Trust Fund The FAA Trust Fund was created in 1958, with part of its mission to manage federal grants for airport planning and capital improvement projects. This money was appropriated from the General Fund. The Airport and Airway Trust Fund and its grant program, the Airport Development Aid Program, were established by Congress in 1970. 3 The Trust Fund is capitalized through passenger ticket taxes and other excise taxes and user fees. Congress reauthorized the budget for the Trust Fund under the Airport and Airway Act of 1982. The grant program was renamed the Airport Improvement Program (AIP), and the 1982 act defined airports eligible for grants. Local FundinP Mechanisms In the United States, ownership of airports rests almost entirely with local governmental agencies. These typically have few capital resources, but federal involvement does not eliminate the need for local financing mechanisms. Airport capital requirements are generally met through the sale of obligation bonds or revenue bonds, with some measure of state assistance. 4 II. SAN DIEGO COUNTY AIRPORTS OVERVIEW COUNTY AIRPORTS SYSTEM The San Diego region has a total of 16 airport facilities owned and operated by a variety of public agencies both local and federal. Eight of the region’s airports are owned and operated by the County of San Diego, making it the largest airport system, serving the greatest number of users in the San Diego Region. The County has been operating airports since 1947, during which time it has developed into one of the largest regional airport systems in the State of California. It is considered a part of the National Air Transportation System and includes one (1) primary commercial airport, McClellan- Palomar; two (2) regional airports, Gillespie Field and Ramona; three (3) community airports, Jacumba, Borrego Valley, and Fallbrook; and two (2) limited use facilities, Agua Caliente Springs Airstrip and Octotillo Airport. These airports collectively provide for general aviation, corporate and commercial aviation, and provide land available for lease, for aviation, industrial and non-aviation purposes. Since these eight airports are owned and operated by the County of San Diego, the County Board of Supervisors sets all policy and provides the overall direction for the County airport system. In addition to its policy role, the Board of Supervisors has appointed a number of advisory committees to monitor and advise County staff and the Board on airport activities and issues. These committees include the Gillespie Field Development Council, the Palomar Airport Advisory Committee, and the Fallbrook Community Airpark Advisory Committee. The County airport system is operated by the County’s Department of Public Works, Airport Division which includes a support staff of 25. Twelve of airport system team provide management and administrative support to all eight airports, the balance of personnel are located at Gillespie Field, McClellan-Palomar and Ramona airports. A primary goal for the County Board of Supervisors has been to keep the airport system fully self-supporting. In 1980, the Board established an Airport Enterprise Fund (AEF), where revenues generated from each of the eight county airports are collected so that they may be kept separate from the County’s General Fund. These airport revenues are then used to fund the entire airport system as well as pay any debt service the system has incurred. These monies also provide the required matching funds for FAA capital grants. In addition, the AEF has provided some of the funding of other public improvements and enhancements at individual airports deemed important for the continued economic growth and financial health of the entire airport system. The use of an enterprise accounting system has enabled the County airport system to operated within the revenues it generates. The FY2000 County Airports budget request totals $25.6 million with $16 million requested for funding of a variety of capital improvement projects in the airport system. POLICY F-44 In 1987, the County Board of Supervisors established a policy (F-44) to provide guidelines for the operation and development of McClellan-Palomar Airport. The policy was modified in 1991 and then again in 1996. The policy is scheduled to sunset on December 3 1,2002, but can be reviewed for continuance prior to this date. The following eight items are outlined in Policy F-44: 1. 2. 3. 4. 5. 6. 7. The role of Mc-Clellan Palomar Airport shall be to provide air transportation for the residents of North San Diego County and to facilitate General Aviation activities while minimizing noise impacts on surrounding areas and communities. Scheduled commuter airline operations are limited to aircraft having 10 to 60 seats and meeting the approach speed and wing span categories for McClellan- Palomar Airport in accordance with FAA regulations. Commuter airline aircraft shall meet the FAA State III noise criteria. The Airport will operate with one runway that simultaneously accommodates a 4,700 foot landing distance and a 5,000 foot take off distance; the 300 foot difference, a displaced threshold on the runway’s east end, will increase safety of the airport while reducing noise levels. The County will take a proactive role working with local agencies and the FAA to protect the airspace around the airport ti-om encroachment and to promote compatible off airport land development, and to insure the future safety and compatibility of the existing runway length. The County will operate the airport in accordance with any adopted FAA Part 150 Noise Compatibility Program and in full compliance with any State or Federal mandated noise standards relating to the operation of a public airport. The program will recognized the Noise Element of the City of Carlsbad’s General Plan and implement mitigation measures to minimize noise impacts. . The County will monitor aircraft noise and verify the Community Noise Equivalent Level (CNEL) noise contours within the airport influence area as described in the Palomar Airport Comprehensive Land Use Plan as well as monitor pilot compliance with any adopted FAA Part 150 Noise Abatement Program. The County will continue to monitor air traffic around the airport with a noise monitoring and flight tracking system and implement procedures to mitigate single event noise complaints. The Airport Manager will produce distribute and promote a detailed noise abatement program for the airport. The program will contain specific flight information and a chart identifying noise sensitive areas. The noise abatement Program will be updated annually and distributed to pilots. The Airport Manager will request pilot compliance with the program. 8. This policy recognizes SANDAG’s Airport Land Use Plan. HISTORY OF MCCLELLAN-PALOMAR AIRPORT Most of the land on which the County’s airport facilities are located were dedicated by the federal government as a means of maintaining a general aviation network throughout the nation. Originally the Airport was referred to simply as Palomar Airport, however, in 1982 the airport was rededicated to McClellan-Palomar Airport in honor of Gerald McClellan, an aviator and North San Diego County leader who was instrumental in developing the airport. l In 1958, the County purchased approximately 238 acres for $144,000 to site Palomar Airport in the City of Carlsbad. The Palomar Airport site was acquired as a replacement for the De1 Mar Airport, which was also owned and operated by the County of San Diego. l In 1958, the Federal Aviation Administration (FAA) provided a grant for additional land and improvements for Palomar Airport. l In 1959, Palomar Airport opened for business after construction was completed on a 3,700 foot long, 100 foot wide runway. l During the 1960’s, a terminal building was constructed, the runway was extended to 4,700 foot in length and widened to 150 feet, and runway lighting was installed. l The air traffic control tower was installed by the FAA in 1973. l In 1974, when the County acquired an additional 225 acres for $1.5 million, Palomar Airport was expanded again. l In 1976 an Airport Master Plan was approved by the County Board of Supervisors. l An Instrument Landing System (ILS) and approach lighting system were installed in 1977. l During the early 1990’s high intensity approach lights and airport perimeter fencing was installed. l In 1996/97 improvements were completed to comply with FAR Part 139 certification. The certification took effect December 1,1998. l In 1997 the County Board of Supervisors approved a new Master Plan for McClellan- Palomar Airport. l In 1999 a new, interim terminal facility was added. ,- In total, it is estimated that the FAA, through numerous grants, has participated in more than 50% of the acquisition and development costs of McClellan-Palomar Airport. AIRPORT FACILITIES McClellan-Palomar Airport is a single runway facility serviced by an air traffic control tower operated by the FAA. It is classified as a general utility facility, an airport mainly serving aircraft with a maximum gross takeoff weight of 12,000 pounds or less, although some larger aircraft do operate at the airport The airport occupies approximately 255 acres of land, with an additional 211 acres of County owned airport separated from the airport by Palomar Airport Road and El Camino Real. McClellan-Palomar Airport is the only airport with and Instrument Landing System (ILS) between Lindbergh Field and Santa Ana that can accommodate the business aircraft over 12,500 pounds. The Airport is open 24 hours a day, however, most take-off and landings occur between 7a.m. and 1 lp.m., with a voluntary curfew of 10 p.m. to 7 a.m. Currently Palomar Airport is served by two regional airlines, United Express and America West Express. United Express makes 11 round-trip flights per day to and from Los Angeles International Airport. America West operates 4 round-trip flights per day to . and from Sky Harbor Airport in Phoenix, Arizona. Air traffic statistics at McClellan-Palomar Airport are recorded by on-site county airport management staff. Information on aircraft operations is provided by the FAA control tower staff. County staff also collects and records data concerning commercial passenger activity at the airport. AIRPORT OPERATIONS In 1998 Palomar Airport handled over 60,000 enplanements and 132,000 total passengers. The airport also serves a variety of corporate aircraft, general aviation fliers, and offers sightseeing excursions on vintage aircraft. McClellan-Palomar recently became a Federal Aviation Regulation Part 139 Certificated Airport, expanding safety and security features, thereby enabling larger commercial aircraft to service the facility. Emplanements at Palomar are projected to grow to more than 287,000 within the next 20 years, with passenger throughput forecast to exceed 630,000. There are six (6) fixed base operators providing aircraft parking, aircraft storage hangars, aviation fuel, major aircraft and engine repair, automobile rental and flight instruction. In 1998 there were 490 aircraft based at the airport, most of which involved single engine aircraft. Revenue fi-om Palomar Airport are derived primarily from aviation and commercial leases, and represent approximately 34% of the total airport system revenue. III. MCCLELLAN-PALOMAR AIRPORT - LAND USE .- CARLSBAD GENERAL PLAN There are eight elements of the Carlsbad General Plan, with four of them applicable to McClellan-Palomar Airport. These include the Land Use Element, Circulation Element, Noise Element and Public Safety Element. However, the General Plan elements that are most comprehensive with respect to McClellan-Palomar are the Land Use and Noise Elements. The General Plan also designates McClellan-Palomar Airport as a Governmental Facility. The General Plan requires coordination with the San Diego Association of Governments and the Federal Aviation Administration to protect public health, safety and welfare by ensuring the orderly operation of the Airport and the adoption of land use measures that minimize the public’s exposure to excessive noise and safety hazards within areas around the airport. Land Use Element Land for development of McClellan-Palomar Airport was purchased in 1958, with construction of the airport complete in March of 1959. The airport was built atop the mesa just south of the Agua Hedionda valley and lagoon. Oriented to take advantage of the on-shore winds, the runway lies on an east-west axis. The associated glide path, crash hazard, and noise impact areas around the airport significantly influence the type and intensity of development across the entire central area of the City of Carlsbad. This area of influence extends generally in a broad band east and west of the runway, and to a lesser degree, north and south of the airport. To limit noise impacts on noise sensitive land and for reasons of general health and safety, the City has designated areas surrounding the Airport for predominately planned industrial and commercial uses. To accomplish this, a significant amount of non-residential land has been designated on the General Plan. Residential development and most institutional land uses, such as hospitals and schools, are precluded from this area of airport influence. Noise Element California’s Planning and Zoning Laws require a Noise Element which identifies and appraises noise problems in the community. The Law specifically requires that noise levels of commercial, general aviation, heliport, helistop, and military airport operations, aircraft overflights, jet engine test stands, and all other ground facilities and maintenance functions related to airport operations be analyzed and quantified, to the extent practicable by the legislative body. In California, the technique used for quantifying aircraft noise is the community noise equivalent level (CNEL). The CNEL is a descriptor of daily noise environment. It accounts for the magnitude, the time of day, and the frequency of occurrence of noise intrusions. The CNEL is calculated from the hourly noise by a formula prescribe in the 9 California Noise Standards. The outside boundaries of the areas generally subject to such noise are usually portrayed by lines overlaid on a map of the area around the airport. These boundary lines are referred to as “noise contours”. The noise contours are the basis for delineating the airport’s Area of Influence and for establishing a pattern of land uses in the General Plan Land Use Element. Projected noise contours are provided in the Comprehensive Land Use Plan for Palomar Airport. COMPREHENSIVE LAND USE PLAN (CLUP) In 1970, the State of California enacted a law requiring the formation of an Airport Land Use Commission (ALUC) in each county containing a public airport. The law required that a comprehensive land use plan be formulated that would provide for the orderly growth of each public airport as well as the areas that surround an airport. This was done as a means to insure the safety and the general welfare of the inhabitants within the vicinity of the airport and the public in general. The San Diego County Board of Supervisors, by unanimous vote on December 15,1970, recommended that the San Diego Association of Governments (SANDAG) be designated to assume the responsibility of the county’s Airport Land Use Commission (ALUC) and be charged with development and adoption of a Comprehensive Land Use Plan (CLUP) for each public airport. The purpose of the CLUP is to identify areas likely to be impacted by noise and flight activity created by aircraft operations at the airports. Its primary use is to provide information about specific impacted property in terms of land use or construction implications, and mitigation measures necessary to permit development that is compatible with airport operation. The most recent CLUP for McClellan-Palomar Airport was adopted in April 1994. As a long range master plan the CLUP reflects the anticipated growth of the airport over the next 20 years. So that the information contained in the CLUP remains current, it is updated every five years. State law requires that the City’s General Plan comply with the Airports Comprehensive Land Use Plan. If the City chooses to overrule a finding of the Airport Land Use Commission, it must do so by a two-thirds vote of the City Council, it makes a specific finding that the General Plan and the CLUP are consistent. The City’s General Plan, adopted in 1994 is consistent with the CLUP. AIRPORT INFLUENCE AREA The Airport Land Use Commission establishes an Airport Influence Area for each airport in the region. The Influence Area encompasses those areas adjacent to airports that could be impacted by noise levels exceeding the California State Noise Standards or where height restrictions would be needed to prevent obstructions to navigable airspace as outlined in the Federal Aviation Administration regulations. It represents the boundary of the Commission’s planning and review authority. The Commission procedure ensures a regional overview to protect the airport’s operations and to prevent the creation of new noise and safety problems. The cities of Carlsbad, Encinitas, Vista, San Marcos, and 10 - Oceanside, through their community planning processes and zoning ordinances, retain land use control within the Airport Influence Area. The City of Carlsbad has established an overlay zone for the AI-UC designated Area of Influence. The procedure requires that all parcels of land located in the Airport Influence obtain either a site development plan, planned industrial permit, or other discretionary permit and comply with the noise standards of the CLUP and Federal Aviation Administration building height and lighting obstruction requirements. RUNWAY PROTECTION ZONE The Runway Protection Zone for McClellan-Palomar Airport are the land areas adjacent to the ends of the runway’s primary surface, over which aircraft using the airport must pass for each operation, either arrival or departure. The only land uses compatible with the Runway Protection Zone are: natural recreation areas or habitat and species preservation areas; public rights-of-way, agriculture, or storage facilities. In addition, areas immediately adjacent to the airport in every direction are zoned with a height limit of 35 feet (average), to ensure that new construction will not penetrate either the approach surfaces at the runway ends or the transitional surfaces along the length of the runway. FLIGHT ACTIVITY ZONE Areas designated as within the Flight Activity Zone are sites where most problems my be expected to occur. Flight activity hazard areas are those areas most likely to experience a crash and generally lie beneath the flight pattern, especially in the final approach to the runway. The Flight Activity Zone overlays private properties. It identifies areas which should be held free of intensive development, including high rise development and all uses that involve the assembly of large groups of people (more than 100). MC-CLELLAN PALOMAR AIRPORT MASTER PLAN The County Board of Supervisors approved a Master Plan for McClellan-Palomar Airport in 1976 that had a planning horizon of twenty (20) years (1975-1995). The purpose of the Airport Master Plan is to identify the Airport’s potential needs and future development during a twenty year period. In 1996, the County began an update of the 1976 Master Plan and provided the Carlsbad City Council with an overview of the major components. In September 1997 the County Board of Supervisors approved the new Airport Master Plan. As with the first Master Plan, it also has a 20 year planning horizon (1995-2015). The Plan is divided into five year increments. Certain facilities are required to be in place as certain important thresholds are reached. A key factor in determining future facility requirements was to estimate future demand. Forecasts of future aviation activity a the Airport were estimated based on national, regional, and local trends in aviation activity and economic growth as well as projected population growth in the Carlsbad area. This information was then used to estimate numbers of based aircraft, aircraft fleet mix, 11 ,- passenger enplanements, annual aircraft operations, and peaking characteristics. Since airport improvements are based primarily on demand and not a specific year or timeframe, improvements are programmed as specified levels of activity are reached. CITY OF CARLSBAD CONDITIONAL USE PERMIT On September 24, 1980, the Carlsbad Planning Commission issued a Conditional Use Permit (CUP 172) for McClellan-Palomar Airport which allowed for certain structures and facilities without additional discretionary review. Provided uses proposed by the County are consistent with the approved Master Plan and the Conditional Use Permit, they are permitted to apply directly for a building permit. In this way the Airport Master Plan is implemented administratively. In 1998 the County of San Diego began processing a Conditional Use Permit Amendment (CUP 172A) to update their existing conditional use permit to reflect (1) existing conditions; (2) reflect the 1997 Board approved Master Plan, and (3) adjust the configuration of the property covered by CUP 172. On February 4, 1999, the CUP Amendment was withdrawn by the County, because of mitigation concerns for the Palomar Airport Road/El Camino Real intersection failure. To date there has been no resubmittal of the CUP amendment by the County. CARLSBAD MUNICIPAL CODE On August 5, 1980, an initiative petition dealing with future expansion of Palomar Airport was presented to the Carlsbad City Council by Carlsbad voters. On August 12, 1980, the following ordinance was adopted by the Carlsbad City Council: “2 1 S3.0 15 Voter authorization required for airport expansion. (a) The City Council shall not approved any zone change, general plan amendment or any other legislative enactment necessary to authorize expansion of any airport in the city nor shall the city commence any action or spend any funds preparatory to or in anticipation of such approvals without having been first authorized to do so by a majority vote of qualified electors of the city voting at an election for such purposes. (b) This section was proposed by initiative petition and adopted by the vote of the city council without submission to the voters and it shall not be repealed or amended except by a vote of the people.” Based on this section of the Carlsbad Municipal Code, any proposal for construction of structures or facilities which are not listed in the approved Conditional Use Permit, would require an amendment. 12 C IV. ECONOMIC BENEFIT OF MCCLELLAN-PALOMAR AIRPORT ECONOMIC STUDY The overwhelming majority of studies that examine the impact of airports on local or regional economic development conclude that they exert a positive effect. However, it is not altogether clear whether airports lead or follow economic growth. Air transportation appears to be a prerequisite, but not necessarily a sufficient condition for certain industries in their site selection deliberations. Also airport facilities alone are not the only element involved in regional and local development. What is clear is that air travel has grown significantly since deregulation in 1978, resulting in thousands more travelers passing though airports across the country. It is also clear that a number of businesses and industries value access to an airport. In a study conducted by Carnegie Mellon University in 1989-90, researchers verified that one of the most significant airport attributes affecting a regional economy is the number of destinations available and the frequency of flights to those destinations. Combine the expanding market with the need to reach those markets, and consistently the response from public leaders as been clear, pro-growth airport policies. Cities across the nation have begun to improve and expand their airports while others are constructing new ones from the ground up. However, as air traffic in an area increases, and airports are expanded to handle the flow and or boost the local economy, noise and vibrations from aircraft create a problem for people living nearby. It is not uncommon for airport development to be curtailed due to citizen opposition, In fact, economic impact studies are often commissioned to convince nay-sayers of the advantages of airport development; In 1994, the County of San Diego commissioned an Economic Benefit Study for McClellan-Palomar Airport. The study was conducted by Coffinan Associates and Arizona State University College of Business and followed procedures in its methodology that were recommended by the Federal Aviation Administration (FAA) and the California Department of Transportation (CalTrans). Since 1994, no new or updated studies have been conducted and the estimates made at that time of future growth of the airport are understated compared with actual data we have today. This section of the airport analysis will not make an independent assessment of the economic benefits, rather it will highlight the findings and predictions of the 1994 study. According to the Study: “Airports benefit the regional economy through the employment, payroll, and spending associated with aviation activity both on and off the airport. Airports are sources of measurable economic benefits impacting jobs, income and regional spending levels. 13 Suppliers of aviation services, such as airlines, private businesses serving general aviation, other airport tenants, and various government agencies, all create jobs and value added for the local economy. Air travelers create economic benefits that extend throughout the region. Visitors who arrive by air generally have greater expenditures for lodging, retail, entertainment, and food as compared to visitors using other modes of travel. However, it is important for citizens and policy makers to be aware that airports create significant unmeasured social and economic benefits for the regions which they serve. For example, convenient air transportation allows freedom for individuals to travel to satisfy their preferences for goods, services, and personal needs Airports make the regional economy more competitive by providing businesses ready access to markets, materials and international commerce. Airports also bring essential services to a community, including enhanced medical care (such as air ambulance service), support for law enforcement an fire control, and courier delivery of mail and freight. These services raise the quality of life for residents and maintain a competitive environment for economic development.” “An efficient airport can provide a competitive edge for communities seeking corporate relocations and expansions. Two out of every three Fortune 500 companies use private aircraft for their business to transport goods, material, and personnel.” Data collected during the study was input into special economic impact models developed by the FAA and CalTrans in order to determine McClellan-Palomar Airports contribution to the local, regional and state economy. Benefits were categorized as either Direct or Induced (multiplier effect of direct benefits) and then combined to represent a Total Benefit (Exhibit 1). DIRECT BENEFITS These are benefits that result from (1) on-airport economic activity of airlines, fixed base operators, all other airport tenants, and government agencies including the airport authority, as well as (2) off-airport activity that includes spending by air travelers for lodging, restaurants, entertainment, ground transportation and retail goods and services. These measures represent the amount of “first round spending, value added (new output), ,payroll, and jobs in the McClellan-Palomar service area that were the result of the presence of the airport during the study period. This is the direct economic activity that would not have occurred without the airport, the aviation services provide there, and spending by users of these services. 14 INDUCED BENEFITS These are the multiplier effects of the Direct Benefits and represent additional spending that is generated as a result of the on and off airport activities. It in effect becomes a “second round” of spending that occurs as a result of the airport. Dollars spent by suppliers or users of aviation services create or induce additional output, jobs and payroll, as they circulate within the economy, creating a multiplier effect. Induced impacts occur when an on-airport service provider purchases supplies or services locally, pays wages to its workers, or undertakes capital expenditures. All of these outlays create local jobs, additional output and income as the dollars circulate in the economy. In addition to direct and induced Benefits, the study looked at gross revenues, value added, payroll and employment as a way of measuring the economic benefits. GROSS REVENUE Total sales of business firms and budgets of government agencies, or the total flow of dollars from aviation-related activity. These are not subject to multiplier effects, since only the value added component stays within the local economy. VALUE ADDED This is a measure of new output created within the region. Value added results when input materials are processed by labor, under the direction of management, to produce a product for resale or service. PAYROLL This is a component of value added, representing the payment for labor used to create new output from aviation related activity. EMPLOYMENT This is the number of jobs required to create the gross revenues and value added. According to the 1994 study, in 1993-94 McClellan-Palomar Airport provided the following benefits to the regional/local economy: TOTAL ECONOMIC BENEFITS OF MCCLELLAN -PALOMAR . 1,270 Jobs l $33 Million Total Payroll l $88 Million Value Added l $108 Million Gross Revenues 15 These Total Economic Benefits can be broken into the following categories: , /-. Total Benefits from Air Operations: Includes airlines, air cargo, auto rental, FBO services, food services, flight instruction, charter services, medical transport, aerial photography, aircraft maintenance, aircraft sales and rentals, government agencies, airport administration, and capital projects. . 290 Jobs l $7.4 Million Total Payroll l $27.4 Million Value Added l $32.9 Million Gross Revenues Total Benefits from Air Visitors: Includes lodging, food and drink, retail goods and services, entertainment and transportation. . 320 Jobs l $6.6 Million Total Payroll l $12.7 Million Value Added l $17 Million Gross Revenues Total Benefits from Travel Agents: . 13 Jobs l $296,000 Payroll l $740,000 Value Added l $11 Million Gross Revenues SUMMARY The County commissioned study anticipated the future economic impact of McClellan- Palomar Airport and made a number of projections for both 2000 and 2005 utilizing a projected number of passenger enplanements of 33,000 and 45,000 respectively. Unfortunately these figures understate the actual number of enplanements that occurred even as early as 1998 (over 60,000 enplanements and 132,000 passengers) and therefore significantly under estimate McClellan-Palomar’s future and current economic impact. However, utilizing the projection of 45,000 enplanements for the year 2005, the direct economic benefits from the airport were expected to be $114.5 Million in business revenues, 1,472 Jobs, $33.9 million in payroll, and $71.1 million in value added. Indirect benefits were expected to be an additional 1,531 jobs, $46 million in payroll and $113.6 million in value added. Although the estimate of operations are lower that the actual data they do indicate a significant economic contribution to the City of Carlsbad, North San Diego County and the region. It is safe to assume that continued growth in the number of enplanements and passengers will result in greater economic growth and benefit to the City and the region in the future. However, the extent of economic benefit will likely be contingent upon the County’s 16 .-- F . ability to continue to upgrade airport facilities and provide other on and offsite improvements in support of this growth. 17 V. AIRPORT FINANCING NATIONAL OVERVIEW Airports are required by federal statute to operate as self-sufficiently as possible (49 U.S.C. Section 47107(a)( 13)(A)). This is a condition of federal grants, airports’ traditional source of capital, and an increasingly important obligation. Intense competition in the airline industry has resulted in greater pressure on airports to contain costs, the federal government has reduced the amount of grant funding available, and the ability of existing sources of capital to meet airport infrastructure needs is uncertain. Airport Improvement Program (AIP) The Federal Aviation Administration administers the federal airport grant program, the Airport Improvement Program (AIP). AIP grants help finance projects that enhance airports’ capacity, safety, security, and noise mitigation. Generally, most types of airfield improvements, such as runways, lighting, navigational aids, and land acquisition, are eligible, while hangars and interest expense on airport debt are not. AIP-eligible projects for airport areas serving travelers and the general public - called “land-side development” - include entrance roadways, pedestrian walkways and movers, and space within terminal buildings that does not produce revenue and is used by the public, such as waiting areas. AIP-ineligible land-side development projects include revenue-producing terminal areas, such as ticket counters and concessions, and the interest on construction bonds. The AIP plays a significant role in funding airports, especially smaller airports (commercial-service airports with fewer than 1.5 million passenger boardings a year). In a 1999 report by the U.S. General Accounting Office (GAO), using data from 1996, the most recent year for which the GAO conducted an analysis, the nation’s 3,233 smaller national system airports obtained $1.5 billion in funding, about 22 percent of the total that year. These airports relied on AIP grants for half of their funding, followed by tax- exempt airport and special facility bonds, and state grants. Passenger facility charges (PFC), a fee imposed on each passenger per trip segment and which is to be used on airport related capital projects, accounted for only 7 percent of smaller airports’ funding mix. Conversely, larger airports received more than $5.5 billion in funding, relying on airport bonds for 62 percent of their total funding, followed by PFC collections. AIP grants accounted for only 10 percent of larger airports’ funding. Whether existing sources of capital will be adequate to meet future development needs is uncertain. In GAO reports on airport development needs published in 1999, the Office looked at studies which indicate substantial future investment in airport infrastructure is needed. The reports use airport funding in 1996 and conclude that as much as $1.4 billion, or % of smaller airports’ planned development that is eligible for grants may not be funded on an annual basis (a lack of funding for only about l/5 of larger airports’ planned development was projected). Small airports planned to spend nearly $3 billion per year for capital development during 1997 through 2001, or $1.4 billion per year more 18 than they were able to fund in 1996. Smaller airports’ planned development consists of projects eligible for Airport Improvement Program grants, such as air-side items which include runways, taxiways and noise abatement, and projects not eligible for grants, such as roads, parking lots, hangars and terminal retail space. Despite smaller airports’ heavy reliance on federal funding and GAO reports identifying critical capital improvement needs, the trend for the AIP is reduced funding that “will represent a shrinking percentage of airport funding”, according to the GAO. At its peak in fiscal year 1992, AIP spending was $1.9 billion, almost 25% of that year’s national airport capital costs. Spending dropped below $1.5 billion in 1995, and did not increase until 1998 when it totaled only $1.62 billion. Fiscal year 1999 AIP funding was $1.95 billion, but the AIP was authorized for only 6 months, through Mar, 3 1, 1999, and the FAA was allowed to commit to airports only half the amount funded, or $975 million, until the AIP was further extended. The inability of Congress to resolve FAA reauthorization issues resulted in two more short term extensions and FAA funding gridlock. The year ended with the FAA operating two months without authorization and Congress continuing to debate legislation to reauthorize the FAA’s programs. Funding for fiscal year 2000 is $1.85 billion, but as of February 17,2000, the program remained suspended without authorization. McClellan-PalomarKanital ImprovementsKountv Airnorts The County’s airport system depends on financial assistance from the FAA to meet the majority of its capital needs but it operates within the revenues that it generates. According to “A Study of County Airports” conducted by the County in 1999, the system is funded through the Airport Enterprise Fund (AEF), it does not receive any funding from the County’s General Fund, and it has an operating budget of approximately $4 million, a capital budget close to $9 million, and operating revenue in the amount of $4.26 million. The report also shows that the cost of operating the entire airport system is $3.85 million, and only 2 of the system’s 8 airports operate with a surplus of revenue over expenses: (1) Gillespie Field, with industrial leases contributing approximately 45% of total operating revenues for the County airport system; and (2) Palomar, generating 34% of the total operating revenue of $4.26 million, or 37% of the cost of operating the entire airport system with revenue primarily from aviation leases and commercial leases. The 7/l/98 thru l/8/99 AEF revenue and expenses statement provided by the County is shown in Exhibit 2. A few years ago, County Airports had a reserve of around $6 million. Since that time, according to the Study, the agency has embarked on a very aggressive capital program and the great majority of this “reserve” was allocated to specific projects. The end result is that the reserve fund is close to being depleted. The balance at the end of Fiscal Year 1998-99 was projected at $1.44 million. The largest of the expenditures that has led to the reserve depletion was a loan of approximately $6 million to the County’s Redevelopment Agency to help fund the establishment of an industrial park next to Gillespie Field Airport, located in a 19 Redevelopment Agency Project Area. It is a contiguous area of approximately 746 acres, of which 342 acres are devoted to airport related activities. There are more large parcels within this area to be developed. As a result, to continue the development of property for non-aviation uses, additional loans from the AEF are projected through fiscal year 2012- 13 and the issuance of nearly $16 million of debt by the Redevelopment Agency is planned before the end of 2006. The County’s efforts to increase non-aviation revenue are consistent with federal statutes that (1) require the airport system to operate with an overall goal to be “as self sustaining as possible” (49 U.S.C. Section 47107(a)(13)(A)); and (2) encourage airports to become totally self-supporting by enhancing their commercial or groundside revenues. Under 49 U.S.C. Section 47107(b), airports are mandated to limit total aeronautical revenues to total aeronautical costs-thus prohibiting any operating income from aeronautical sources. Moreover, without the development of non-aviation sources of revenue the County airport system could not sustain itself. According to the Study, the County’s aviation lease revenues do not support the cost of services provided to the airport users. The addition of non-aviation and industrial park revenue provides needed capital for both the operations and capital development of the airport system. Land placed in the non- aviation arena brings five times the return of land that is restricted to aviation uses. Finally, the non-aviation property is critical to airport funding as it provides for a more diverse source of revenue than the land restricted to aviation uses only. While there are ample opportunities for expansion of non-aviation revenue sources at Gillespie, such opportunities at Palomar are limited. The airport is land locked and has very little opportunity for expansion beyond the existing property boundaries. According to Bob Durant, Airports/Transit Public Works Manager, there is a significant need, however, for the expansion of commercial aviation uses at the airport. Mr. Durant reports that the Fixed Base Operators (FBOs) are now moving toward more corporate clients because they purchase more fuel than do general aviation aircraft operators, and the FBOs may be able to increase rents with these clients. In addition, according to Airport Manager Floyd Best, more commuter airlines are interested in Palomar. Expansion for these uses, however, requires a new terminal and additional parking. According to the County’s 1999Airports Annual Business Plan, with a financial plan spanning 20 years, . ..aviation revenue at McClellan-Palomar airport should increase substantially with the construction of the new terminal building and parking facility to service the growing commercial passenger market. This will propel the aviation revenue system-wide to a level of near self-supportability. This will likely occur between years five and ten based on our current enplanement forecasts. At this time, however, there is little progress toward realizing this projection. Both a new terminal and additional parking have not been moved out of the early stages of planning. A parking study to address long term needs and the design of a new terminal were projected for this current and next fiscal year respectively. However, according to Mr. Durant, the earliest the parking study could begin is fiscal year 2000-01 and it is uncertain if the terminal design can be realized that year. 20 Over the past year or longer, the County as been discussing the development of the terminal and parking with Palomar Airport Centre (PAC), the management firm for the “Burrows Leasehold”, an FBO with the first right of refusal for the development of their 12 acre parcel. According to Mr. Durant, a study on the development of a terminal, just south and west of the existing terminal, and parking on this property will be done by the end of March, 2000. On the basis of that study, he believes that the parties should be able to determine if they can pursue the project. While working with PAC, the long term parking needs study has been put on hold. In any case, development of a new terminal cannot proceed without first resolving the issue of parking. Last year, Mr. Durant reported to the Palomar Airport Advisory Committee that the cost of a new terminal is estimated at $4.5 million to $5 million, which cannot be justified unless there is adequate parking. However, additional parking cannot be constructed without an approved amended conditional use permit (CUP). The County has not obtained this permit for 2 reasons. (1) A CUP amendment application (CUP 172A) was submitted on May 12, 1998. It was withdrawn on February 4, 1999, as a result of traffic mitigation requirements. According to Mr. Durant, the County’s contribution to the Palomar Airport Road improvement project should satisfy the requirement for County participation in traffic mitigation on this roadway. In a March 22,200O interview of Mr. Durant, he added that the improvements to the airport are even more important to the City than the County, and some time ago, he sent the City a letter requesting relief from the requirement but has not yet had a response. He acknowledged that this may be because the CUP amendment application has not been re- submitted. According to both the Planning and Engineering Departments, the letter has not been received, and to date, the application has not been re-submitted. (2) According to Mr. Best, there has not been adequate staff time to complete and re-submit the application. Until the CUP amendment can begin to be processed, long term parking and a new terminal cannot be addressed, and opportunities for expansion of revenue and revenue sources will continue to be limited. In the Business Plan the AEF reserve is projected to decline to about $500,000 in fiscal year 2000-01, and then grow again to approximately $1 million in 2004-05, nearly $17 million in 2009-l 0, and approximately $80 million in 2018-l 9. However, capital projects between 1999-00 and 2004-05 total more than $58 million with the AEF share targeted at just over $11 million. As Mr. Durant wrote in the Fall ‘99 issue of PLANENEWS, the County Airports’ newsletter, “while the 20-year financial plan for County Airports provides a picture of prosperity, the immediate future has demands for improvements that exceed available resources.” In addition, as the Business Plan emphasizes, the growing level of the reserve over the twenty-year period should be viewed with caution because 21 (1) years 6-20 of the Plan are very scant in terms of capital development; (2) it is based on current economic conditions - if the economy deteriorates, the lease revenue streams and the tax increment revenue that is generated by the Gillespie Field Redevelopment Project will be affected and the reserve level will decline; and (3) the Plan assumes a very high level (60%) of FAA assistance for capital development. Another reason to view the projected growth in the AEF reserve with caution is the financial liability County Airports has picked up since the Business Plan was completed. At the end of 1999, improvements needed at Palomar as a result of airport property deterioration associated with the underlying landfill were identified. While the County Inactive Waste Site Management Group, a division of the County Department of Public Works (DPW), has a trust fund of approximately $100 million that funds the maintenance of the County’s eighteen (18) inactive landfills, part of the responsibility for the current condition of the property has been allocated to the Airports Division of DPW. As a result, some of the estimated $4 million cost of improvements taking place this year will be “billed” to Airports. According to John Rollin, Public Works Manager in the Inactive Waste Site Management division, in an interview in late 1999, the amount to be funded by Airports has yet to be worked out. In the interest of time, his division agreed to pay the full amount now and work out later the amount to be reimbursed by Airports. Finally, it is unknown if there will be any future financial liability for the landfill allocated to the Airports Division. According to Mr. Rollin, the regrading and re-paving work in progress is only a “temporary fix.” 22 VI. MCCLELLAN-PALOMARKOUNTY AIRPORTS SALE OR LEASE NATIONAL OVERVIEW Various legal obstacles have deterred attempts to sell or lease commercial airports in the U.S. According to the November 7, 1996 GAO report “Airport Privatization: Issues Related to the Sale or Lease of U.S. Commercial Airports”, the primary obstacle stems from the legal assurances airports agree to meet as a condition to obtaining federal grants. The FAA maintains that airports must continue to adhere to these assurances as part of any transfer of control, and these legal obligations cannot be unilaterally extinguished by repaying the grants (in testimony by the GAO earlier that same year, it was noted that the FAA has not sought any reimbursement when airport ownership has been transferred between public entities). Particularly problematic is the assurance regarding the use of airport revenue. Current law generally requires that revenue generated by public airports must be used exclusively to pay for their capital and operating costs and cannot be diverted for non-airport purposes. Because the FAA contends that airport revenue includes any sale or lease proceeds, local and state governments are entitled to recover only their unreimbursed capital and operating costs from these proceeds. As a result, the GAO concludes, the financial incentive to sell or lease is diminished. McClellan-PalomarKountv Airports In 1999, the County evaluated the feasibility and advisability of the sale or lease of one or more of its airports. The County’s study included the results of a survey of twelve airport agencies, a general assessment of the state of the County’s airports (County Airports), and a review of the federal regulations related to the sale of a County airport. Report findings include: While the great majority of agencies develop and manage their own hangars, County Airports is one of the few agencies that solely rely on the private sector to develop hangar facilities, thus minimizing the County’s risk in economic downturns; Although four of the twelve agencies surveyed depend on the receipt of general government funds, County Airports does not rely on the County’s General Fund, County Airports has one of the lowest fee structures and still is able to remain self- sufficient; County Airports’ staffing is very lean (staff of 25 to support 8 airports); Tie-down fees could be increased; Efficiency of lease administration needs to be examined; and 23 l Stakeholders have a high level of customer satisfaction. Major conclusions of the study include: 1. 2. 3. 4. 5. 6. Three “critical success factors” for County Airports are: (a) self-sufficiency; (b) aggressive property development; and (c) partnership with the private sector to help develop its airports. The sale of any County airport would require FAA approval of those airports that occupy land that was dedicated by the federal government, and reimbursement to the FAA of funds that were awarded through grants for the improvement of the subject airports. Specifically, the approximately $6.1 million of FAA funds that were used to purchase and develop McClellan-Palomar Airport would have to be returned to the FAA, assuming that the FAA approved of the sale. Any sale of airport property would require that the County address its past use of redevelopment bonds. The County issued redevelopment bonds in 1995 to finance the development of an industrial park adjacent to Gillespie Field. The Master Pledge Agreement for this bond issue requires the County to provide a solvent airport system to ensure the security of the bonds. Because of this requirement, the Agreement prohibits the sale of airport property except in narrowly defined circumstances. About $230,000 of County Airports’ overhead is charged to Palomar on an annual basis. While the elimination of Palomar from the County system would decrease some overhead expense, the majority of this expense would need to be carried by the remaining airports. Any sale of Palomar would require consideration of the issue of the inactive landfills upon which it is built. The sale would remove revenues but leave the County with ongoing liabilities for the landfills. Because the County’s airport system is self supporting and not a burden to the General Fund, coupled with the revenue diversion restriction and grant repayment requirement, there is no compelling reason for the County to sell at this time. The report was given to the Board of Supervisors for their review with recommendations to (1) continue with the current management system; (2) continue to explore legal restrictions to long term leases or sale and assess the strength of the market as it becomes mature; and (3) implement a process improvement plan to expedite the lease adjustment when there is an escalation clause to ensure that the County receives market value on all leases. 24 C - VII. MCCLELLAN PALOMAR AIRPORT ENVIRONMENTAL ISSUES Airports create smog, contaminate waterways and generate a significant amount of noise pollution. The environmental impacts of airports that will be discussed include noise, and ground water contamination and hazardous gas specific to the landfills beneath Palomar Airport. NOISE NATIONAL OVERVIEW Communities throughout the U.S. are struggling to address the impact of aircraft noise on residents. This nationwide struggle is the result of federal regulations that restrict the control of airport operations for noise control purposes. The limitations on noise control activities are spelled out in the Airport Noise and Capacity Act of 1990 (ANCA). This legislation resulted in large part due to the efforts of local agencies to restrict airport operations to reduce airport noise impacts on residents, and concerns that these efforts would impede growth in aviation. Findings of Congress cited in the Act include: (1) aviation noise management is crucial to the continued increase in airport capacity; (2) community noise concerns have led to uncoordinated and inconsistent restrictions on aviation which could impede the national air transportation systems; and (3) a noise policy must be implemented at the national level. The main features of the Act are requirements that (1) by the year 2000 all jet aircraft weighing 75,000 pounds or more at civilian airports be Stage-3 aircraft (aircraft that incorporate the latest technology for suppressing jet-engine noise); and (2) impose further constraints on the authority of airport owners to introduce any new noise and access restrictions. Now, to obtain FAA approval for a restriction, ANCA implementing regulations in Federal Aviation Regulation (FAR) Part 161 require substantial evidence to support compliance with six statutory conditions. To meet these conditions, the airport sponsor must demonstrate that the proposed restriction: l is reasonable, non-arbitrary, and nondiscriminatory between classes of aircraft; l does not create an undue burden on interstate or foreign commerce; l is not inconsistent with maintaining the safe and efficient utilization of the navigable airspace; l does not conflict with any existing Federal statute or regulation; l has been afforded adequate opportunity for public comment; and l does not create an undue burden on the national aviation system. According to FAA attorney Monroe Balton, compliance with Part 161 is very expensive, time consuming, and requires an extensive noise study. Mr. Balton reports that there 25 have been only two attempts at this study in the Western Pacific region, and in the ten years since passage of the Act, none have been completed. McClellan-Palomar Airport Noise Compatibility Program (Part 1.50 Program): In 1992, the County proposed some noise abatement and mitigation measures to the FAA, through the development of a noise compatibility program under Federal Aviation Regulation Part 150. The FAA’s FAR Part 150 noise compatibility program focuses on airport noise as it relates to land use planning. It provides for the voluntary development of noise exposure maps and noise compatibility programs by airport operators, and FAA approval procedures. An approved Part 150 noise compatibility program is required for an airport operator to receive FAA grant funds for most noise mitigation projects. Many of the proposed measures that were approved were administrative, represented a continuation of existing practices, or were already within the authority of the City of Carlsbad and the County of San Diego. These included measures such as updating City and County land use plans to reflect noise exposure areas, ensuring that aircraft noise levels are included in the fair disclosure statement for certain properties (see the “Noise Impact Notification Area” discussed in Exhibits 3a-c), educating pilots about noise sensitive areas, and continuing to have the airport advisory committee serve as a forum for discussion of noise abatement actions. Only two other measures were approved as proposed: (1) a noise monitoring system, and the FAA specified that “this approval does not extend to the use of monitoring equipment for enforcement purposes by insitu measurement of any pre-set noise thresholds”; and (2) a voluntary stage 2 (a level of technology for suppressing jet-engine noise) jet departure curfew between 10:00 p.m. and 7:00 a.m. through a letter of agreement between the County and stage 2 jet aircraft at the airport. The remaining measures proposed were either disapproved, approved with the modification that they be voluntary measures only, or the FAA determined that there was “no action required at this time”. For some of the measures disapproved or for which no action was taken, the FAA noted that additional analysis was required. According to FAA Environmental Specialist David Kessler, who worked with the County on its program, he is not aware of any additional analysis that was submitted. A complete listing of the measures proposed and the FAA’s response to each is shown in Exhibit 4. Noise Complaints: Noise complaints received at the airport center around low flying planes, pilots who fly over residential areas, and planes that fly outside the voluntary curfew hours. The following is a summary of relevant airport operations and noise complaint statistics, some of the constraints to addressing the complaints, and recent actions taken to address the issue. 26 .- 1. Airport Operations: (a) Level: Airport operations - take-offs and landings - were greater in every month of 1999 than any previous year since 1992. Total operations in 1999 were 292,000, up 19% from the total of 245,000 in 1998 (Exhibit 5). Palomar Airport was the busiest airport in the county last year, with more operations than both Lindbergh and Montgomery airports (Exhibit 6). (b) Factors in airport operation levels and aircraft true: General aviation (GA) makes up 78% of the aircraft using the airport; corporate jets make up 18% and commercial flights make up 4%. According to Airport Manager Floyd Best, the predominant factors responsible for the increase in operations are the mild weather and healthy economy, which encourage general aviation flights (Exhibit 7). Mr. Best reports that most GA pilots can’t fly in inclement weather because they are not instrument rated, and the strong economy has made the high cost of flying more affordable. (c) Traffic - Local and Transient: The majority of airport operations are transient. In 1998 about 2/3 of the operations were transient. In 1999, the total was closer to 3/ (Exhibit 8). According to the 1999 National Business Aviation Association Handbook, Palomar is in the top 20 airports based on itinerant general aviation operations (Exhibit 9). 2. Complaints: The following data is limited by the fact that technical problems at the airport during 1999 prevented an unknown number of callers from logging their complaints. (a) Level: Complaints in 1999 were well above that of 1998, equivalent to the total in 1997, and with the exception of 1994, higher than any other year since1 992. Airport staff has acknowledged that*during 1999, as a result of technical problems, not all callers were able to log their complaints. As a result, it can only be concluded that complaint levels in 1999 were most likely the second to the highest if not the highest recorded since 1992. (Exhibit 10). (b) Bv communitv: In 1999,2/3 of the complaints were from residents of Carlsbad, and of those, nearly half originated from the Poinsettia area, southwest of the airport (Exhibit 11). (c) Bv aircraft tvpe: Noise complaints are predominantly over propeller-driven aircraft. In 1999, the noise complaints by aircraft type were: propeller - 41%; jet - 28%; helicopter - 7%; commercial - 5%; and unknown - 19% (Exhibit 12). (d) Bv time of dav: Noise complaints are most often the result of flights between 7:00 a.m. and 5:00 p.m. In 1999, the noise complaints by time of day were: 7:00 a.m.- 5:00 p.m.: 75%; 5:00 p.m.-lo:00 p.m.: 13%; and 10:00 p.m.-7:OO a.m.: 12% (Exhibit 13). 27 3. Constraints to resolving complaints about (a) low-flying aircraft; (b) flight paths over residential areas; and (c) flights outside the voluntary curfew hours: (a) Flight Altitude - The airspace is controlled by the FAA. To provide maneuvering room for aircraft to safely descend into and climb out from the airport, the FAA established a cylinder of airspace 7 miles in diameter and 2,800 feet in altitude, centered around the airport runway. This airspace is known as “Class D Airspace”. “Class E” areas have been designated as extensions of this airspace to provide controlled airspace for instrument approaches from the north and east (Exhibit 14). These areas coincide closely with the noise impact notification area discussed in Exhibits 3a-c and shown in Exhibit 15. According to Mr. Best, a pilot needs to get to 1,000 feet as he exits the Class D air space if he is going to transit over a populated area. However, while in this airspace he may be lower than 1,000 feet and he can climb within the performance capabilities of his airplane, or per instructions from the tower, to reach a cruising altitude or the coast. Propeller-driven aircraft cannot climb as quickly as other aircraft, which may account in part for the significant percentage of complaints attributed to these planes. (b) Flight Path: Flight paths are controlled by the FAA’s control tower at the airport. The “preferred path”, established by the FAA in consultation with airport management to minimize aircraft noise impacts on the community, is directly west out of the airport and over the intersection of Palomar Airport Road and I-5 to the ocean. This flight pattern is recommended and voluntary to pilots. A pilot is free to take any course he/she wants unless directed otherwise by a tower controller who is charged with keeping aircraft at safe distances. According to Air Traffic Control Tower Chief Sallyanne Rice, the tower must frequently direct aircraft outside the preferred path for safety reasons. The airport is a single runway facility with jet aircraft mixed in with much slower aircraft, and when patterns are busy, controllers must vector (“fan out”) aircraft in other headings to maintain a safe margin between them. According to Ms. Rice, this occurs 200-300 times per day. With an average of 8 11 operations per day last year, this means that % to more than l/3 of the aircraft fly outside the preferred path every day. (c) Curfew: Per the FAA, the airport’s curfew may be voluntary only. Any attempt to make it mandatory would require the extensive studies required by the Airport Noise and Capacity Act discussed earlier. According to Mr. Best, Airport staff does, however, attempt to contact pilots who fly during curfew hours. Mr. Best reports that when the security guard can, he notes the identification number of an aircraft that “violates” the curfew and staff follows up with a letter to the operator. Mr. Best also reports the following difficulties in reaching the operators and getting “compliance” with the curfew: (1) transient aircraft may be registered to an aviation company in another state with an address that is difficult to locate; (2) registration to a business makes it difficult to locate the individual pilot; and (3) a pilot may have to fly after hours because a client needs to travel during that time. 28 (4) Actions in response to complaints: (a) Complaint call and response process - The airport’s response to complaints is to identify the plane and its flight path through the noise monitoring system, and educate pilots on proper flight procedures. Both the software and hardware of the noise monitoring system were upgraded at the end of last year. Since the end of December, the County has contracted with a Noise Reporting Specialist who collects noise complaints left on voice mail, and according to Mr. Best, investigates each one (in 1999, Mr. Durant reported that complaints were addressed on an ad hoc basis and that this was going to change). In addition, the phone system was updated at the end of last year to ensure that all callers could leave a message, and a complaint form was added to the airport website to provide another means to file a complaint. (b) Education/Awareness: Actions the County reported taking the past year to reinforce noise abatement efforts include: (1) meetings with FAA tower personnel, airline owners, flight schools and air carrier chief pilots; (2) reinforcing the preferred flight pattern, and noise sensitivity in the County’s PLANENEWS publication; and (3) placing the noise abatement procedures on County Airports’ website. (c) Coordination between FAA, County and City and outreach to public: As a result of escalating noise complaints in 1999, a public workshop on airport noise issues was held by the County, along with the FAA and the City of Carlsbad, on January 20, 2000. About 100 citizens attended the meeting. As a result of the workshop and a meeting between the City, County and FAA held earlier that same day, consensus was reached on 3 actions items: (1) update the Part 150 Noise Compatibility Program; (2) the County will request that the FAA allow the airport to use the noise monitoring equipment for enforcement purposes; and (3) establish periodic roundtable discussions involving all the interested stakeholders to better understand and address the complexities of airport operations and noise control. Since the workshop and as of February 16,2000, the following actions have been taken: (1) the County has sent a letter to the FAA requesting permission to use the monitoring system for enforcement purposes; (2) Mr. Durant reported to Council that in March, County staff would like to visit roundtable discussions in the cities of Santa Monica and Torrance, and he would like City staff and interested groups to go as well; (3) on February 8,2000, the Council expressed support for these actions, City participation in the roundtable discussions, and the County seeking solutions by investigating noise control activities at other airports; and (4) on February 15,2000, the County Board of Supervisors gave staff approval to apply for a grant to update the existing Part 150 Noise Study. According to the staff report that went to the Board, the study is expected to cost approximately $250,000 (the FAA’s grant program typically funds 90% of the cost) and take a minimum of three years to complete. 29 LANDFILL STATE OVERVIEW According to the State Water Resources Control Board (SWRCB), until the early 198Os, little attention was given to regulating or investigating potential ground water pollution sources. Water pollution control efforts focused primarily on controlling the discharge of sewage and industrial wastes into surface waters - rivers, streams, lakes and the ocean. Since then, pollution concerns have shifted to contamination of ground water by toxic chemicals and other substances. This change in focus was prompted by the introduction of thousands of new chemicals into the environment since World War II, and major advances in detection technology which revealed traces of chemicals in wells state and nationwide. A significant source of ground water contamination is leaking landfills. In a 1995 SWRCB study of active and inactive landfills in California, for which water quality solid waste assessment test reports were submitted, the percentage found to be polluting ground water with municipal solid waste (MSW) leachate (“garbage juice”) was between 72% and 86%. In a 1994 paper by G. Fred Lee, Ph.D., PE, DEE, prepared for the California Environmental Protection Agency, Dr. Lee wrote that chemicals released from landfills to nearby ground water and to the air via leachate and landfill gas contain a wide variety of potential carcinogens and potentially toxic chemicals that represent a threat to public health. According to Dr. Lee, the leachate from MSW landfills is a highly concentrated “chemical soup”, so concentrated that small amounts of leachate can pollute large amounts of ground water rendering it unsuitable for use for domestic water supply. Furthermore, he wrote, both gas and Ieachate from MSW landfills contain many organic chemicals that have not been characterized with respect to specific chemical content or their associated public health or other hazards. These <non-conventional pollutants ’ include more than 95% of the prganics in MSW leachate. According to SWRCB, monitoring data collected in the late seventies “indicated that fluids leaked from landfills were reaching ground water.” In 1984, an increased awareness of the adverse environmental and health effects caused by many common organic compounds prompted the inclusion of organic compounds in water quality analyses from landfills. These analyses indicated that volatile and semi-volatile organic compounds (VOCs) were found in ground water near landfills, and in many cases, at concentrations exceeding regulatory levels. That same year, revisions to the California Code of Regulations, Title 23, Division 3, Chapter 15, governing discharges of waste to land, required landfill operators to prepare a monitoring plan for all active landfills; the decision as to whether to monitor an inactive landfill was at the discretion of the Regional Water Quality Control Board (RWQCB), based on potential threat to water quality. Monitoring wells were to be designed specifically for the purpose of ground water monitoring. After the RWQCB approved the plan, the discharger was to establish monitoring points, start monitoring and submit monitoring reports. In 1986, the first year 30 - of the program, few such monitoring programs had been established. In addition, according to SWRCB, funding for this program was reduced significantly in 1988, cut completely in fiscal year 1991-92, and only limited funds were available in fiscal years 1992-93 through 1994-95 to review a backlog of submitted reports. According to San Diego RWQCB staff, funding has not been appropriated since that time, resulting in little review of these ground water monitoring reports. PALOMAR AIRPORT LANDFILL Three closed landfill sites, owned and operated by the County between 1962 and 1975, and referred to as Landfill Units l-3, lie beneath the airport. Situated from west to east, Unit 1, the oldest unit, is approximately 9 acres, Unit 2 is 5 acres, and Unit 3 is 19 acres. The average trash depth for each unit is approximately 20 feet. The top deck of Unit 1 is paved with asphalt concrete and the area is leased for general aviation purposes. Portable hangars and light weight storage buildings have been erected over Unit 1, with adjacent parking facilities for automobiles and fixed-wing aircraft. Similarly, the top deck of Unit 2 has been paved with asphalt concrete, and this area provides maneuvering room for aircraft, aircraft tie downs, and access to permanent hangers outside the Unit. There is no development on Unit 3, located at the eastern end of the runway. A review of RWQCB and Department of Environmental Health files on the Landfill reveal (1) concerns about landfill gas emissions and the protection of ground water that date back nearly 10 years; and (2) the County Department of Public Works’ (DPW) slow and inadequate responses to the requests of the environmental oversight agencies for measures to prevent environmental degradation and protect the public’s health. Environmental hazards documented by the Air Pollution Control District, RWQCB and Department of Environmental Health include: (1) inadequate monitoring and control of methane gas emissions; (2) cracking of asphalt which allows infiltration of water into underlying wastes; (3) “differential settlement” that (a) impacts drainage structures, (b) impacts sideslopes (causing erosion rills which can result in exposed solid wastes), (c) impacts the integrity of structures, and (d) provides a pathway for the release of landfill gases into the atmosphere and structures, and which can compromise the integrity of the landfill gas collection system; and (4) methane emissions through asphalt fractures exceeding the “lower explosive limit”. Documentation also includes (1) the Landfill is leaking and needs monitoring to assess the extent of contamination of ground water; (2) there are an insufficient number of monitoring wells to determine ground water flow direction; and (3) correspondence over inadequate responses, insufficient required reports from DPW, and the issuance of numerous notices of violation. The County’s lack of action to resolve these problems resulted in actions by the oversight agencies that include: (1) the issuance of 2 notices of violation by the Regional Water Quality Control Board, one in 1998 and one in 1999; (2) a letter from the Local Enforcement Agency (LEA) reviewing the recent history of numerous violations and requiring immediate corrective actions (the LEA is the County Department of Environmental Health, responsible for the regulation of solid waste disposal sites under 31 .- - the authority of the Public Resources Code and Title 27 of the California Code of Regulations); and (3) an inspection by the California Interactive Waste Management Board. These actions and the agencies seem to have a limited impact on DPW. While some remediation work is currently in progress, there is little evidence to suggest that there will be on-going and long term efforts to prevent environmental degradation and comply with waste discharge regulations to protect the environment and the public. A review of the violations documented by RWQCB and the LEA, as well as information about ground water issues documented over several years, recent actions by DPW, and implications for the City’s Dry Weather Testing Program and ground water quality in Carlsbad are discussed below. (1) Regional Water Quality Control Board (RWQCB): (A) On June 12,1998, RWQCB issued a notice of violation for failure to perform adequate landfill maintenance, and the percolation of surface drainage through waste. A workplan to mitigate the landfill settlement and improve drainage was required by July 3 1,1998. DPW submitted a workplan on July 30,1998; however, the RWQCB responded to the submittal with concerns about both the vague scope of work and design of remediation and repairs, and the lack of a start date for long-term compliance work. (B) On April 22, 1999, a second notice of violation was issued in follow-up to the earlier one because the violations regarding landfill maintenance and drainage had not been addressed. The notice also included (1) the fact that gas measurements by the LEA “indicated the lower explosive limit was exceeded for methane” and that this also was a violation; and (2) the agency’s concerns about DPW’s lack of specific milestones and dates in its long term workplan remained to be addressed and were required by May 20, 1999. On May 19, 1999, DPW submitted a list of 5 general tasks: preliminary engineering report, engineering, environmental approval, advertise/award contracts, and construction with tentative completion dates between November 1999 and December 2000. RWQCB requested a more detailed schedule which was submitted the following November with work projected to occur during the same time frame. Missing from these notices was any mention of ground water monitoring, even though attached to the April 22, 1999 notice was a April 8, 1999 inspection report documenting inadequate ground water monitoring because of “inadequate number of monitoring wells to determine ground water flow direction for each unit”. Furthermore, the need for . additional monitoring wells for the determination of ground water flow direction had been documented many times since 1997, the first year DPW submitted a ground water monitoring report under the RWQCB’s 1996 updated waste discharge requirements (WDR). In that report the County’s consultant noted the following violations: (1) ground water flow rate and direction has not been determined (because existing wells are inadequate to enable this determination); and (2) water quality protection standards have not been developed (because ground water flow directions are not available). The report also noted that the County plans to establish additional wells. 32 ,- According to RWQCB staff, the violations did not mention the insufficient number of wells because “there are so many things wrong out there” that RWQCB decided to just focus on a few items, and the County has consistently reported that they will put in more monitoring wells. RWQCB staff also reports that for some time the County maintained that it would construct a “subsurface barrier” as a ground water protection measure. This intention was communicated in a letter from DPW to the Department of Health Services back in 1993, as a result of refuse found outside the known boundaries of Unit 2 and discovered while drilling ground water monitoring wells. According to RWQCB staff, the barrier was never constructed. RWQCB has continued to document the inadequate ground water monitoring at the airport, and information submitted by DPW during the past year, information collected in the City’s Dry Weather Testing Program during the past year, and recent actions by DPW highlight the importance of these wells. These three areas are discussed below. On April 30, 1999, DPW submitted the 1998 annual monitoring report and cover memo which included the following: (1) a number of volatile organic compounds (VOCs) were detected in the wells at all of the units; (2) testing of a “seep” near the southwest comer of Unit 3 revealed “constituents similar to those historically detected in ground water wells downgradient from Units 2 and 3.” The seep occurred in the north face of a trench associated with storm drain and road construction along the north side of Palomar Airport Road. Evidence of seepage was noted along 30 to 50 feet of the trench wall east and west of a storm drain outlet box located approximately 40 feet from the southwest corner of Unit 3.... Standing water was present in the bottom of the storm drain outlet box and, based on the assumption that the seep was the source of that water, a sample was collected for analysis. The results were typical leachate indicators. Several metals also exceeded applicable standards. The VOC constituents detected match those detected in wells MW-I, MW-5 and MW-7, all of which monitor shallow ground water. The laboratory results and the proximity of the seep to the land$ll suggest leachate as the source.. . ; (3) The County is developing a site characterization and workplan for implementation of an Evaluation Monitoring Program (EMP) at the site.... The investigation is intended to evaluate the source, nature and extent of impacts to ground water and determine ground water-flow directions.... As part the of EA4P investigation, . . . the County plans to install a suficient number of wells in each aquifer to establish ground water gradients andflow directions. Ground water contour maps will be generated at that time. A preliminary draft site characterization and work plan has been completed and is scheduledfor submittal June II, 1999. In a June 22,1999 letter regarding the 1998 monitoring report, RWQCB commented that the submittal of a ground water contour map is required, it has not been done because there are an insufficient number of monitoring wells for each landfill unit, this is a violation, and if not addressed in the next semi-annual monitoring report, a notice of violation will be issued. In the October 30, 1999 cover memo to the 1999 semi-annual monitoring report, John Rollin, DPW Public Works Manager, just reiterated the County‘s intentions regarding an EMP, with no report of any progress made on this effort and no 33 - new date for it to be submitted. As of March 22,2000, the EMP still has not been submitted and no notice of violation has been issued. During this same time frame, the City’s dry weather testing results at the intersections of Camino Vida Roble and Yarrow Drive, and Camino Vida Roble and Palomar Oaks Way, identified storm-water flow with a low pH reading, indicating a high acid content in the runoff. In a July 20, 1999 memo from Associate Engineer Steve Jantz, Mr. Jantz reports that the most recent dry weather testing report concludes that, based on the results offield investigations, review of current and previous storm-water testing events, and ground water sampling results from the test wells around the airport property, there is a high possibility that the source of the low pHfrow observed at outfall EN-23 [the intersection of Camino Vida Roble and Yarrow Drive] is the ground water-flow moving from the aquifer underneath Palomar Airport Landfill Unit 2. Due to the distance between EN 14- A [the intersection of Camino Vida Roble and Palomar Oaks Way] and the airport property, there is no clear connection between the landfill and the discharge point. However, the constituents in the runoffat EN 14-A are very similar in concentration and make-up. Mr. Jantz met with County staff to share these results and reports that they were not receptive to the possibility of a connection between the results and the landfill. While the findings in the City’s Dry Weather Testing Program are disconcerting, they also place the City in a difficult position. Under this program, mandated by RWQCB Order 90-42, the City is responsible for the control of the discharge of waste in our storm drain system. However, without an adequate number of monitoring wells at the airport to determine ground water flow direction, it is difficult to directly tie the landfill leachate to the stormwater test results. According to RWQCB staff, if the connection can be made, RWQCB can require corrective action. When asked, RWQCB staff agreed with the observation that DPW does not want enough monitoring wells established because this would allow identification of responsibility for ground water contamination. According to RWQCB Executive Officer John Robertus, “This is the psychology”. Prospects for adequate ground water monitoring at the airport worsened during the week of March 13,200O. According to Carol Tomaki, RWQCB Associate Water Resources Control Engineer, DPW “destroyed” 6 monitoring wells as part of their re-grading and re- paving work currently in progress. She reported that despite quarterly meetings with DPW, the plan to do this had never been mentioned and she had not been notified by DPW. She became aware that this was going to happen the day before it took place and instructed that it not occur, to no avail. She also reports that DPW maintains that it will not replace the destroyed wells until all re-paving is done under a schedule to complete the work by the end of December, 2000. According to Ms. Tamaki, there is now only 1 well per unit left, and there should be at least 1 upgradient and 3 downgradient for each unit. Finally, when asked if a notice of violation would now be issued, she responded that she anticipates asking for a schedule for putting in wells and then issuing a violation if DPW does not honor the schedule. Due to design and planning work that will be needed, she believes that the monitoring wells will not be replaced until well into the year 2001. 34 In a March 24,200O interview of RWQCB Executive Officer John Robertus, to obtain information about the RWQCB’s enforcement process, City staff concerns about the results of our stormwater testing and the County’s lack of responsiveness to RWQCB were shared. Highlights of Mr. Robertus’ comments from that interview are summarized below. l Take a serious look at the threat to water quality at Carlsbad beaches. What you may be seeing in your storm drains could be “just the tip of the iceberg”. Last year, the closure of beaches in Huntington Beach as a result of pollution from storm drains is a good example of the tremendous impact this situation can have on the City and local businesses. l Steps the City can take to focus attention on the County’s poor compliance history and the apparent connection between the landfill and the dry weather testing results include: attending a public hearing of RWQCB or sending a letter to the Board requesting that the issue be placed on their agenda and (1) state the City’s concerns about water quality, and based on our review of the records we would like a status report on the landfill, and we want to know what actions we can expect the County to take to abate and control; and (2) state that the City thinks the source of the test results of our storm drains is the airport property and the City is requesting that RWQCB invoke California Water Code Section 13267 and require the County to conduct and fund an investigation. This code section “is a powerful tool”. l Fines up to $1,000 per day can be levied for violations of waste discharge requirements. Based on inaction by the County for problems at the San Marcos landfill, RWQCB recently imposed a fine of approximately $250,000. [He didn ‘t go into the details about the amount but it should be noted that under Section 13264 of the Water Code, the Superior Court may impose civil liability of up to $25,00Oper day of violation. / l RWQCB has an enforcement unit of only 2 people, headed by Mark Alpert, Senior Engineering Geologist. A lack of funding for adequate staffing levels to carry out the agency’s many oversight duties is one of the biggest obstacles his agency faces. In an interview of Mr. Alpert, he reported that he was unaware of the results of our Dry Weather Testing Program and offered to meet with City staff to review the data. He also confirmed that violations on the matter of inadequate wells can be issued and more enforcement can occur, but first, more documentation and follow-up on the County’s promises is needed. (2) On September 10,1999, the LEA (Local Enforcement Agency (County Department of Environmental Health)), sent a letter notifying DPW that it is in violation of CCR Title 27 State Minimum Standards and corrective actions are required. The letter summarized the violations and areas of concern (a condition that, if not corrected, has the potential to become a violation) that had been cited over the previous seventeen (17) months. 35 - According to the letter, since 1998 there has been a succession of continuing violations. Violations and areas of concern were noted in LEA inspection reports dated 3/3 l/98, 5/21/98,6/18/98,9/3/98, 1213198, 12/7/98,3/29/99,6/29/99, and 8120199. The violations and areas of concern were cited because settlement was jeopardizing the integrity of structures and providing a pathway for the release of landfill gases into the air and structures, substantial cracking of the asphalt was allowing surface waters into the underlying wastes, waste was exposed (DPW disputed this finding in a follow-up letter), and because landfill gas was found to be migrating fi-om Unit 3. The letter was entitled “Official Notice”, which according to LEA staff is meant to indicate to the landfill operator that the letter is very serious. It does not carry the weight of an “Order”, which is part of a specific enforcement process. DPW actions required in the letter include the repair of cracks in the asphalt, a monitoring program for the presence of methane in on-site structures to be submitted for review and approval by September 27,1999, a monthly report to the LEA detailing the status of the Landfill, required repairs completed, and all methane monitoring data beginning October 1, 1999. In addition, DPW required the submittal and approval of a workplan detailing corrective action(s) and associated timelines to address the violations and areas of concern by September 30,1999. According to the LEA, DPW’s reply was a draft submitted November 1,1999. It was not found to be adequate. The LEA notified DPW that a meeting would be scheduled to discuss finalizing the submittal, and the LEA asked DPW to finalize it as soon as possible so that the corrective action and monitoring plans could be provided to the City. A January 14,200O submittal with monitoring to begin that month and a re-grading and re- paving schedule between July and December 2000 was accepted by the LEA. According to Mr. Rollin, Department of Public Works Manager in the Inactive Waste Site Management Division, in an interview last November, this work is being done now because “Horn wants it fixed.” When asked if this work will address the pollution problems from the landfill, he responded that the ground water wells on the site reveal no indication that there is any damage to ground water. He stated that the purpose of the work is to address regulatory agency requirements that they must prevent water intrusion into the trash, prevent water ponding on the asphalt, and to improve the surface and level of the pavement for airport operations. Mr. Rollin also reported that this will be a temporary fix only. Dirt will be imported to bring up areas that are now sunken, and then they will re-pave. Subsidence will be continual as the trash continues to compact and decompose. Finally, he stated that hopefully, these repairs will last 5 years, and if lucky, 10 years, but it is difficult to predict. (3) On August 21, 1999, the California Integrated Waste Management Board (CIWMB), and the LEA conducted an inspection of the airport property, and in a follow-up report on the visit the CIWMB wrote the following in a letter to the LEA: . . . we noticed the same conditions at the site as we had observed previously; namely settlement, drainage and erosion problems. We noted structures notwithstanding the eflects of differential 36 - settlement and we observed huge cracks on the landfill surface. We further observed runofffrom washing an aircraft, simply infiltrating into the landfill through the asphalt cap. Based on the state of the landfill, Board staflbelieves that the site continues to sufferfrom lack of adequate maintenance and that the routine and scheduled maintenance of the site, as required and as designed to protect the health and safety of the public and the environment, has been and continues to be either postponed or ignored, despite the conditions at the site and the repeated requests from the regulatory agencies to have the site be in compliance with state minimum standards. We have been told that this airport is the largest single runway airport in the nation, and with so many people using the airport, it only seems logical that adequate and on-time maintenance should be$rstpriority, however, no evidence ofprevious or on going maintenance was observed during our inspection. The apparent lack of maintenance has caused substantial damage to the landfill cover system and has jeopardized its integrity (27 CCR, S21140). Depressions, large and small, apparently caused by settlement, were observed throughout the site. The settlement has eflected site drainage (27 CCR, S21150) and tfnot corrected immediately would continue to allowponding of water and water infiltration into the landfill. Furthermore, it is possible that the settlement at the site will have already compromised the integrity of the landJill gas collection system. Cracks approximately 4 to 6 inches wide and 2 to 3 feet deep were also noted over some areas of the landfill. The cracks are conduits for gas migration (27 CCR, S21160) and water infiltration and air intrusion into the landfill. . . . Overall, the site requires immediate and adequate maintenance to minimize the potential threats the existing conditions pose to the health and safety of the public and the environment. Please note that conditions noted above have been repeatedly cited in the LEA ‘s previous inspection reports as violation of Title 27 of the California Code of Regulations. We have reviewed the Oficial Notice dated September IO, 1999 from your Department to the operator, . . . and we support your action and would like to offer our assistance with any matter which would lead to site improvements. According to RWQCB staff, the County appears to be on track with preparations to keep to the regrading and re-paving schedule to repair the landfill cover during the last half of 2000. The first methane gas monitoring report was submitted to the LEA on February 14,200O. This report reviews some maintenance activities and concludes that the Landfill Gas Migration Control facilities appear to be performing satisfactorily as of the date tested. According to DPW’s cover merno to the report, a consultant has been retained “for the design and implementation of the permanent on-site structure monitoring.” File: Library Airport Master 37 VIII. CONCLUSIONS & REXOMMXNDATIONS CONCLUSIONS: Land Use: l The City of Carlsbad currently participates in land use review and approval of all projects in and around McClellan-Palomar Airport, along with other agencies. l Under the existing Conditional Use Permit (issued by the Carlsbad Planning Commission in 1980), certain structures and facilities are allowed without discretionary review. In the event that an amendment to the CUP is submitted for review and approval, the City will have an opportunity to revise the existing conditions of approval to provide for a greater role in review of new improvements. l Acquisition of the airport, by the City, would allow the City to control all on-site planning, improvements, and uses. Economic Benefit: l McClellan-Palomar provides significant economic benefit to the City, the North County area, and the San Diego Region. These benefits should continue as long as the airport is able provide for the necessary capital improvements and infrastructure to support its projected growth (enplanementslpassengers). l Economic Benefits from airport growth must be weighed against “quality of life” and safety impacts on Carlsbad and the neighboring cities. Finance/Capital Improvements: l Palomar, like the airport system, does not generate enough revenue to cover all the needed capital improvements. l County Airports has been proactive in developing non-aeronautical revenue sources which are critical to the long term financial health of the airport system and the goal to be self-sustaining. For at least the short term, the cost of not relying on General Fund money has been high at Palomar - general maintenance for operations, public safety and protection of the environment has been poor. l It may be difficult to separate airport maintenance from landfill maintenance. The potential for County Airports’ recent and unanticipated financial liability for property deterioration associated with the landfill under Palomar to continue will be important in future airport system financial planning. The extent to which this financial liability could extend to a new owner will be important to any potential purchaser. 38 Sale: l FAA regulations and the County’s dependence on Palomar to sustain the airport system make it unlikely that the County would be interested in selling Palomar at this time. Noise: l Noise complaints will continue to increase as the City builds out, especially as people begin to occupy the Can-i110 Ranch and Bressi Ranch developments, and airport operations continue to increase. l As operations continue to increase so too will the number of aircraft waiting on the runway, resulting in more aircraft directed outside the “preferred path” and over residences. l The City’s ability to mitigate airport noise impacts on residents is very limited as a result of the FAA’s control over the airspace and flight paths, federal regulations designed to make aircraft restrictions for noise control purposes difficult to impose, and the County’s control over airport operations. l The success of efforts to emphasize noise sensitivity will depend heavily on the airport staffs ability to reach and affect itinerant pilots. Landfill: l Without County Board Supervisor intervention and/or regulatory enforcement, poor maintenance and property deterioration may be an ongoing issue at Palomar. l The likely reasons there has been inadequate ground water monitoring at the airport are: (1) the lack of enforcement by RWQCB; and (2) the threat of required abatement action if ground water flow direction is established and the landfill is tied directly to the Dry Weather Test results. l Without greater RWQCB oversight, our ground water degradation and storm drain test results will likely continue. RECOMMENDATIONS: Land Use: l Consider adding new conditions to any future amendment to the existing Conditional Use Permit (172) that would provide the City with greater review/approval/oversight of new structures and facilities proposed for the airport, as well as airport maintenance levels. 39 Financing/Capital Improvements: l Support legislation which increases AIP funding and/or makes more funds available to smaller airports. l Investigate the advisability of participating in a redevelopment area around the airport in exchange for the expenditure of tax increment funds on Palomar. Sale: l No further action toward acquisition at this time. l If it is decided to continue working toward acquisition, any feasibility study should include an analysis of: 1. the legal assurances an airport owner must agree to as a condition to obtaining federal grants; 2. the legal obligations that may be inherited by a new owner because of prior use of federal funds in the purchase and development of the airport; 3. restrictions on the use of airport revenue; 4. any relevant differences between the sale to a public entity versus a private entity; 5. potential FAA conditions of approval of the sale; 6. the airport’s revenues, expenses and capital improvement needs; 7. the potential for increasing revenue and expanding revenue sources; and 8. a new owner’s potential liability for the landfill beneath the airport. Noise: l Evaluate the need for additions to the Council’s legislative platform addressing the measurement of community noise levels and aircraft noise levels. l Encourage the County to evaluate the feasibility of tying lease agreements to compliance with noise mitigation activities. l When the FAA responds to the updated Part 150 Study, review the response for any comments on the need for additional information or analyses, and where appropriate, recommend to the County that these needs be met. Landfill: l Evaluate the need for additions to the Council’s legislative platform addressing ground water protection. l Review land use authorities for avenues to facilitate adequate and timely landfill maintenance. 40 l Acquire staff expertise in the regulations and enforcement process of the various environmental oversight agencies associated with the environmental issues at the airport. l Pursue a strategy of action steps to (1) raise the awareness among the County and environmental agencies of the City’s concern about water quality and interest in the County’s appropriate and timely remediation actions; (2) within the City’s jurisdiction, continue to investigate the source and extent of pollutants in the storm drains; and (3) share the Dry Weather Testing results with RWQCB enforcement staff and coordinate with RWQCB to help facilitate County compliance. 41 C 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. IX. EXHIBITS Total Impact of McClellan-Palomar Airport Enterprise Fund a. Airport Noise Impact Notification Area b. Airport Noise Impact Notification Area C. Notice Concerning Aircraft Environmental Impacts McClellan-Palomar Airport 1992 County proposed Noise Abatement & Mitigation Measures with Responses from FAA Annual Operations Count San Diego County’s Busiest Airports Factors Effecting Airport Operation Totals Local & Transient Traffic Breakdown Top 20 U.S. Airports Based on Itinerant General Aviation Operations Annual Noise Complaints Annual Noise Complaints by Community Annual Noise Complaints by Aircraft Type Annual Noise Complaints by Time of Day Federal Aviation Administration Class “D” & “E” Airspace 15. Comparison of NINA to Class “D” and “E” Airspace E 0 ce k I G ce : c CI . 0 0 ce 54 E . ce 0 b - - - T - - T 0 = ta 64. - ‘. 8 ET c. 2 . . n E J H q Ei *u$ x 85 w ;E E “0” v--ooo~o.ooQq -y ‘. r- . w oaoooaDoooom z3 z m(oa3m(Dooooa SS~~%~ i? tg z- m- r; $ oi &.~0000000$! rt N C . . iia =E !i - P o-0 2 4 h 5 8 w Q) z a . E i! f; $ -- t eegsz on zg a EzJ ._ 8. 9 2 3 ).OO . . 2 ,f E g % l r( a “a E s E & bn s 8 l . z a d l m .r( % a l m E cw 0 C - EXHIBIT 4 MCCLELLAN-PALOMAR AIRPORT 1992 COUNTY PROPOSED NOISE ABATEMENT & MITIGATION MEASURES WITH RESPONSES FROM FM Operational Measures 1. Raise the traffic pattern altitude from 800 feet above mean sea level (MSL) to 1,000 feet for helicopters, from 1,200 feet MSL to 1,500 feet for small aircraft, and from 1,500 feet MSL to 2,000 feet for large aircraft. No action required at this time. This measure relates to flight procedures under Section 104(b) of the Aviation Safety and Noise Abatement Act of 1979. In addition, the NCP would have to adequately demonstrate a noise benefit; there is insufficient statistical and other data to make a determination on the benefits from a noise standpoint. 2. Increase the instrument landing system (ILS) glideslope angle and the visual approach slope indicator (VASI) angle to 3.6 degrees, which would provide additional altitude to arriving aircraft overflying neighborhoods to the east of the airport, including the community of San Marcos and the Palomar West Mobile Home Park. Disapproved. Increasing the glideslope and VASI angles from their current 3.2 degrees to 3.6 degrees would not provide any meaningful noise reduction and would increase the complexity faced by plots using these approach aids. 3. Modify the Oceanside very high frequency omnidirectional radio range (VOR) approach for aircraft so that they maintain a minimum altitude of 3,000 feet MSL at the Oceanside VOR, 2,000 feet MSL four miles past the VOR on a heading of 120 degrees, and 1,400 feet MSL seven miles past the VOR. Disapproved. Increasing the altitude to 1,400 feet at 7DME would require raising the established minima and would thereby reduce the utility of the approach. 4. Require visual departures proceeding to the coast from Runway 24 to (a) make a right turn as soon as feasible to a heading of 250 degrees, (b) fly over the vacant area between the communities of Terramar and Solamar, and (c) maintain heading until one mile past the shoreline before turning south or north. Approved as a voluntary measure only. This measure reflects a recommended practice which is already in effect at the airport. This measure should be implemented as a part of, and at the same time as measure #18. 5. Prepare a standard instrument departure (SID) with the Federal Aviation Administration (FAA) concerning instrument flight rules (IFR) jet departures from - runway 24 to require that aircraft maintain a heading of 250 degrees and climb to a minimum altitude of 2,000 feet MSL before crossing I-5 or the Oceanside 13 1 -degree radial. Reduce power at I-5 as acceptable for safe flight, and maintain the initial heading and altitude until at least three miles offshore. No action required at this time. This measure relates to a flight procedure under Section 104(b) of the Airport Safety and Noise Abatement Act (ASNA) and requires additional information and analysis. 6. Conduct a test, using noise monitoring equipment in which arriving aircraft to Runway 24 maintain various gear and flap settings between the McClellan-Palomar Airport outer market and the west edge of the Palomar West Mobile Home park. The results of this test may recommend new approach procedures to reduce noise exposure. Approved as a voluntarv measure only. 7. Require jet aircraft arrivals to Runway 24 to use the ILS approach. Disapproved for purposes of Part 150. The measure as submitted does not demonstrate any noise benefit. However, FAR Part 91.129 (d)(2) specifies that large and turbine powered aircraft shall fly the final approach at or above the ILS glideslope and (3) provides that all aircraft approaching a runway equipped with a visual approach slope indicator shall fly at or above the glideslope until a lower altitude is necessary for landing. 8. Specify Runway 24 for use by all aircraft during calm wind conditions. Approved as a voluntary measure. The airport sponsor should consult with the manager of the air traffic control tower regarding implementation of changes to the ATCT SOP. 9. Increase the helicopter route altitude from 800 feet MSL to 1,000 feet MSL. Disapproved pendinp submission of additional information relative to anticipated noise benefits. Information provided in the NCP is insufficient to determine the noise benefit, if any, of this measure. Ground Operation Measures 10. Locate the aircraft engine maintenance runup area on the west side of the Airport with aircraft facing east. No maintenance runups should be conducted between 10:00 p.m., and 7:00 a.m. Disapproved. There is no documentation that these measures will result in a noise benefit for people in the airport vicinity. However, with respect to the location of an aircraft maintenance runup area, the airport operator has the prerogative of designating such a location. ,- 11. When more than four departing aircraft are waiting in queues on the taxiway, additional departing aircraft should hold at their tiedown or hanger location with engines off. Disapproved. There is no indication that aircraft taxiing or holding for departure contribute to noise impacts in the airport vicinity, nor is there any indication that this measure provides any noise benefit. Management Measures 12. Discourage use of the Airport by aircraft operating at a maximum weight of 60,000 pounds, or more. Disapproved for purposes of Part 150. The cause and effect relationship between aircraft weight and aircraft noise is not presented in the NCP. It is within an airport sponsor’s discretion however, to develop or not develop airport facilities to serve larger aircraft and to make known to pilots the physical limitation of the airfield. 13. Discourage jet training operations particularly by Stage 2 aircraft, through voluntary compliance. Approved as a voluntarv measure only. This measure provides for continuation of an existing on-going program at the airport. Any mandatory restriction proposed for Stage 2 aircraft would be subject to analysis and review under the Airport Noise and Capacity Act of 1990 and FAR Part 161. 14. Implement a voluntary Stage 2 jet departure curfew between 10:00 p.m., and 7:00 a.m. through a letter of agreement between the airport owner (County of San Diego) and operators of Stage 2 jet aircraft located at the Airport. Approved as a voluntarv measure onlv. Any attempt to make this measure mandatory would be subject to analysis and review under the Aviation Noise and Capacity Act of 1990 (ANCA) and FAR Part 161. 15. Acquire and install a permanent noise monitoring system to validate the effectiveness of the noise abatement procedures and to quantify noise problems in surrounding neighborhoods in the future. Approved. NOTE: For purposes of aviation safety, this approval does not extend to the use of monitoring equipment for enforcement purposes by in situ measurement of any pre-set noise thresholds. ,-. 16. Designate a noise abatement officer to administer the approved Noise Compatibility Program. Approved. 17. Continue to have the Palomar Airport Advisory Committee act as a forum for discussion of noise abatement actions. Approved. 18. Produce maps identifying noise sensitive areas around the Airport, and distribute them to pilots to help them avoid these areas when possible. Approved. Implementation of this measure should be combined with measure number 4 as a part of a comprehensive effort to inform pilots regarding the noise sensitive areas in the vicinity of the airport. Preventive Measures 19. Amend the San Diego County Airport Land Use Commission’s Comprehensive Land use Plan for McClellan-Palomar Airport to reflect the new forecast noise exposure area in the Airport Influence Area. Approved. This measure is considered to be within the authority of the County Airport Land Use Committee. 20. Amend the noise elements in the General Plans of San Diego County, and the City of Carlsbad to reflect the new noise exposure maps. Approved. This measure is considered to be within the authority of the County of San Diego, and City of Carlsbad. 21. All undeveloped land exposed to noise of CNEL 65+ (current or future) should be rezoned to a compatible use, or, if noise sensitive development is permitted, adequate noise insulation should be required. Approved. This measure is considered to be within the authority of the County of San Diego, and City of Carlsbad. 22. If new noise sensitive development is permitted in areas of CNEL 65+, the granting of an avigation easement to San Diego County should be required as a condition of approval. Approved. This measure is considered to be within the authority of the County of San Diego, and City of Carlsbad. 23. The City of Carlsbad should ensure that for all properties in areas of CNEL 65+, the aircraft noise levels are included in the fair disclosure statement, as required by the State of California. Approved. 24. The owner of the large agricultural area west of the Airport should be encouraged to keep the land in an agricultural preserve under the Williamson Act. Approved. 0 0 0 0 0 Q Q 8 % 8 8 8 8 Q s z z z E 2 v2 rl I \ : I . \ : I -2 : i a \ 2 I /c- \o b r Ia r X x W - I I I 0 E - 2 .I a E m z g 0" - - E 3 8 E m ';;i g Ei - 8 E 0 u ti l rl 0 z 2 E E 4 # l w a “a E & 0 u E h’; %s E *a 0 & z 0 % u E E 4 E 0 u iii! l rl 0 z z E E 4 * u Im n 0 q ml z? El c. 0 Q) - - a E 0 u