Pearson Field Business Plan

Executive Summary

Policy Statement: The City of Vancouver recognizes Pearson Field as a valuable transportation, public service and economic asset of both historic and contemporary significance within the Vancouver National Historic Reserve. The City's long-term vision for Pearson Field is to maintain the airport's existing character and capabilities while balancing the needs to the historic district and surrounding community.

Business Plan Objective: Review the effectiveness of business operation of Pearson Field; identify the conditions affecting operations and recommend actions necessary to consistently meet the City's financial performance standards established for enterprise funds.

Public comment is appreciated: info@geloregon.com

Overview

In early 2004, the City of Vancouver contracted with a multi-disciplined consulting team led by Century West Engineering to develop a business plan for Pearson Field. The consulting team efforts included a review of agreements, airport master plan, Fort Vancouver National Historic Site draft and final General Management Plan, airport budgets, financial schedules and projections, and interviews with key stakeholders, including the National Park Service, National Historic Trust Reserve, Pearson Air Museum, Airport Advisory Committee representatives and City staff.

Through an extensive range of interviews with key stakeholders and the evaluation of available documents, the Consultants have identified several conditions that currently affect, or have the potential to affect, the existing and future financial performance capabilities of Pearson Field. These conditions fall into several categories:

  • Airport Operational/Regulatory Issues
  • Airport Financial Management
  • Airport Management
  • Market Factors
  • Land Use and Zoning

These factors represent the key issues for the City of Vancouver to consider when determining future actions to achieve the City's policy objectives and improve the financial performance of Pearson Field. A brief summary of conditions is provided in the executive summary and detailed evaluations are contained in the working paper sections that follow this summary.

 Airport Operational/Regulatory Issues

Interest: Efficiently and effectively manage Pearson Field as an essential public facility in cooperation with stakeholders.

Policy: Preserve continued operation of Pearson Field in a manner consistent with its complex surroundings which includes urban, residential, open space, historic land use and multi-modal transportation systems.

Challenges:

a. The western half of Runway 8/26 is located on National Park Service (NPS) property and the eastern half is City-owned. This condition requires formal agreements between the City and NPS for the ongoing management and operation of Pearson Field.

The existing City-NPS agreement for the operation of Pearson Field ends in 2022, at which time the future of Pearson Field is not clearly defined. The remaining term of the agreement (currently 18 years) acts as a significant limitation in financing the City's capital facilities plan through the Federal Aviation Administration (FAA); The FAA requires a 20-year guarantee of continued operation as a public airport in order to receive FAA grant funds. Without the FAA's grant program (which currently only require 5% local match) capital repairs and maintenance becomes extremely difficult to finance. The limited term of the existing City-NPS agreement also constrains the City's ability to enter into long-term leases for aviation uses due to the uncertainty of future airport operation. Long-term leases are generally required to secure commercial financing for hangar development.

b. Hangers are currently not accessible by the City for routine safety, security or liability purposes. A dual lock or dual key system is not used.

Recommended Actions/Options:

  1. Maintain an effective partnership with National Park Service (NPS) and the Historic Reserve Trust to define the desired balance among competing land uses within the local area.
  2. Work with NPS to develop strategies for securing FAA Airport Improvement Program (AIP) grants either through waiver of FAA policy requiring 20-year guarantee or modification/extension of existing agreement for the operation of Pearson Field.
  3. Explore the variety of potential options, such as land trades or long term leases, which could allow full City control of the land underlying the entire runway while maintaining a historically conducive environment consistent with NPS operations and the Historic Reserve.
  4. Lock systems on hangars should be updated to provide access by City for safety, security, and liability purposes.

 Airport Financial Evaluation

Interest: Seek adequate and stable funding source to preserve and improve airport facilities and to support airport operations; maintain or improve current financial operating position.

Policy: Operate Pearson Field in a manner that promotes efficient use of City resources while adequately maintaining safe airport facilities.

Challenges:

a. As stated in "Airport Operational/Regulatory Issues", The inability of the City to guarantee the operation of Pearson Field beyond 2022 threatens eligibility to accept FAA grants. The loss of FAA funds over the next 20 years could total $3.0 million. Without FAA funds, the City's portion of the airport's capital improvement and major maintenance costs will increase above historic levels, significantly altering Pearson Field's financial performance and threatening the continued viability of airport operations. Options for offsetting lost FAA grant revenues, such as increasing user fees or securing funding from another source (City general fund, NPS, etc.) do not appear feasible.

b. A recent change in the City's cost allocation methodology has resulted in a significant increase in indirect municipal support costs allocated to the airport and are consuming an increasing percentage of the airport's revenue. These costs are excessive compared to other similar municipal airports and to what would be expected in the private sector. They represent a significant resource drain on the airport. If indirect costs continue to rise at the current rate, it could make sense to outsource management in the future despite the drawbacks.

Recommended Actions/Options:

  1. Work with NPS to develop strategies for securing FAA Airport Improvement Program (AIP) grants either through waiver of FAA policy requiring 20-year guarantee or modification/extension of existing agreement for the operation of Pearson Field.
  2. Maintain cooperative efforts with the FAA and WSDOT Aviation Division to maximize use of available funds for airport maintenance and improvement projects.
  3. Explore long-term strategies, to promote financial stability and avoid uncertainty surrounding future airport operation.
  4. Evaluate reduction in indirect transfer cost allocation for City services being provided to airport or consider lower cost contracting options.
  5. Maintain airport rates and fees schedule based on periodic fair market evaluation; index to CPI or other economic indicator.
  6. Actively market remaining developable airport lands to support goal of increased revenue generation.
  7. Continue using existing key performance measures. Implement additional measures and adjust internal cost allocations to optimize efficient airport performance.

Airport Management

Interest: Manage Pearson Field efficiently and effectively.

Policy: Create and maintain management structure for Pearson Field that supports the City's financial performance goals and the responsibilities associated with maintaining a safe airport facility.

Challenges:

The airport manager for Pearson retired in April 2004 and the City is currently considering options for staffing Pearson Field. For small airports, management duties are often assigned on a full-time or part-time basis with either dedicated airport staff, through use of shared staff with other departments, or through contracting with an outside firm or individual. Administrative functions such as rent collection and lease negotiations/renewals are often managed through finance departments, although these functions may also be contracted to reduce costs.

Recommended Actions/Options:

  1. Maintain shared City staffing for airport, pending a decision on permanent staffing
  2. Evaluate feasibility to transferring basic maintenance and airfield management to FBO through modified lease or other financial agreements.
  3. Define desired levels of service to be maintained and the role of non-airport City staff in airport management through City and contract management options.
  4. Evaluate cost of maintaining City staffing at various levels based on desired level of service/function to be maintained (as defined in item 3), including potential changes in indirect transfers based on different management options considered.
  5. Establish a minimum acceptable cost savings (percentage) that would be required to justify private contracting in lieu of maintaining City staffing.
  6. Develop minimum performance criteria and request proposals from firms/individuals to determine if contract options can meet desired performance targets.
  7. Based on the financial components of each option, make a decision about permanent staffing or contracting for airport management.

Market Factors & Land Use

Interest: Maintain financial sustainability through prudent development of airport land base while maintaining consistency between airport planning and land use planning. Use must be consistent with its complex surroundings that include urban, residential, light industrial, open space and historic land use and multiple transportation systems.

Policy: Promote development of vacant lands consistent with planned airport operation and surrounding land uses that contributes to the goal of increasing revenue generation. Protect Pearson Field as an essential public facility with appropriate land use controls consistent with the long-term operation and development potential of the airport and its surroundings.

Challenges:

a. Non-aviation uses have the potential to bring in a higher level of revenue than aviation uses on remaining real estate. The vacant 2.5-acre parcel designated for non-aviation use on the airport appears to have the potential of generating an estimated $30,000 per year based on existing market conditions and demand for mixed-use commercial or light industrial sites. Interest has also been expressed in developing a vehicle parking facility for the Historic Reserve in this area.

The vacant aviation-use parcels on the airport also appear to have revenue-generating potential; however, the cap of based 175 aircraft defined in existing City-NPS agreements means that aircraft-related uses are limited to ones that do not increase the level of based aircraft. This could include aircraft related service like avionics.

b. The current CPX zoning does not provide clear use guidelines for potential non-aviation development on Pearson Field, as recommended in the current airport master plan. Clarification of permitted non-aviation uses within the existing "CPX" zoning is recommended before any marketing is implemented.

Recommended Actions/Options:

  1. Review Pearson Field's existing "CPX" zoning and clearly identify aviation and non-aviation permitted uses.
  2. Consider rezoning all or portion of Pearson Field to allow aviation and limited non-aviation uses as "outright permitted" uses.
  3. Designate Pearson Field an "essential public facility" under provisions of the Growth Management Act, which will afford additional protection from conflicting land uses.
  4. Coordinate with Historic Reserve Partners to determine level of interest in leasing the site for development of off-site parking facility.
  5. Prepare request for proposals to develop the 2.5-acre site consistent with zoning.
  6. Enter into long-term lease for development of property.
  7. Consider the feasibility of reserving tie downs only for transient aircraft and building new hangars to accommodate the number of planes currently using leased tiedown space.

Public comment is appreciated: info@pattersonparks.com