HomeMy WebLinkAboutStaff Report 2721
City of Palo Alto (ID # 2721)
City Council Staff Report
Report Type: Informational Report Meeting Date: 5/7/2012
May 07, 2012 Page 1 of 11
(ID # 2721)
Summary Title: Palo Alto Airport Information Update
Title: Informational Update Report on Transition of the Palo Alto Airport (PAO)
from Santa Clara County to the City of Palo Alto
From: City Manager
Lead Department: Public Works
This report is provided to the City Council as an informational update on
transition of Palo Alto Airport (PAO) from Santa Clara County to City control. No
further Council action is required.
Executive Summary
At its meeting on December 6, 2010, the Council directed staff to pursue an
alternative to the current administration and governance of the PAO
(CMR431:10). The County of Santa Clara (County) currently administers PAO
under a long-term ground lease with the City. In light of the expiration date of
the ground lease and other factors that have come into play, the Council directed
staff to examine various options that would determine the future governance,
operation, administration and development of PAO. After it conducted a number
of studies and in light of the County’s lack of interest in extending the ground
lease, the staff has begun to undertake the process of City takeover of PAO.
A staff airport team has been assembled consisting of staff from the City
Attorney’s Office (ATT), Administrative Services (ASD), and Public Works (PWD)
departments. The team has retained the services of an independent airport
consultant, CommuniQuest, which has experience and expertise in general
aviation airport operations and administration, to provide an objective appraisal
of the issues. After many meetings and conference calls to discuss a myriad of
options and concerns, it was determined the best course of action was for the
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City to itself govern and administer PAO. Thus the City is working toward
achieving this objective.
Background
When the County informed the City that it was no longer interested in operating
PAO and after PAO tenant complaints continued to emerge, the Council began to
examine a variety of options for the future operation of PAO. Studies were
conducted to explore the direction the City should pursue; those included the
Palo Alto Airport Working Group (PAAWG) report and the R.A. Weidemann &
Associates report. An Airport Master Plan (AMP) was also developed under the
direction of the County; however, this document was not adopted by the City in
that developments included in the AMP were in conflict with the Baylands Master
Plan (BMP).
The County currently operates and provides administrative guidance of PAO
under a long-term ground lease that commenced in 1967 and is due to expire in
2017. Under the terms of the ground lease, operational management and control
of PAO was granted to the County, including the right to sublease to the Fixed
Base Operators (FBOs) and other interested parties. Development and
maintenance of PAO was also administered by the County. Development projects
that involve PAO’s operations area has been primarily funded by Federal Aviation
Administration (FAA) grants; matching funds have been provided by the County,
either through direct contribution from the PAO enterprise fund revenues or
revenues derived from the other two County airports, Reid-Hillview and South
County. The most recent major project conducted at PAO was a runway
rehabilitation project in fiscal year 2002/03. Since that time no other major
project has been pursued at PAO.
There are also two FBOs operating at PAO. The County leases to Roy-Aero
Enterprises and Airport Management Group, Inc. (Dr. Brandt) are both due to
expire concurrently with the ground lease to the County in 2017. The future of
these FBOs will be discussed further by the City and the FBOs at the appropriate
time.
With the forthcoming expiration of the ground lease with the County, studies
were conducted to determine PAO’s future. The PAAWG report and the
Weidemann report provided options for future governance and administration,
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but both indicated that the City should assume control of PAO. There are two
primary options for the management of PAO:
Third Party Management by an Independent Contractor/Lessor;
City Operation and Management of PAO.
In the summer 2011 the City hired CommuniQuest to provide airport advisory
services. CommuniQuest reviewed the Weidemann report and the County
Airport Fund’s financial documents. Based on review of these documents,
meetings with the PAO tenants and the County, the City team aided by an analysis
provided by CommuniQuest concluded the best and most viable option for both
the City and PAO is the City’s operation and management of PAO. The January 6,
2012 Analysis and Recommendation of Governance is attached for information.
Discussion
Founded on future City operation of PAO, a recommendation was made by the
team to outline the necessary steps to take control of PAO. A draft timeline has
been established and is referenced further below. A key step in this timeline will
be the hiring of an airport manager. PAO needs the expertise of an experienced
representative “on the ground” to attend to PAO matters, both administrative
and operational. This employee will serve as the City’s liaison to the County and
the FAA. The hiring of this person will be important to the long-term management
of PAO, as the City requires one with the ability to manage the daily operations
and to assist in the transition from the County to the City. In so recommending, it
was determined the Airport Enterprise Fund, which was recently established,
would be a division of the Public Works Department. This structure is similar to
airports operated by Napa County, the City of Hayward, the City of Livermore and
Santa Clara County. A job description has been developed based on information
obtained from the above airports and this position has been proposed in the FY
2013 Public Works Airport Enterprise Fund Operating Budget. If the appropriation
is approved, the hiring is anticipated to be completed by late fall 2012.
The proposed timeline establishes a preferred target date of between July 1 and
December 31, 2013 (FY 2014) for the effective transfer of airport operations to
the City. This was determined to be a potentially feasible date considering the
variety of tasks to be completed or at least soon will be underway. The draft has
not been finalized as additional and unforeseen issues may yet develop that could
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cause the City to reconsider this ambitious timeframe. Staff anticipates that legal,
regulatory, land use and environmental considerations could negatively impact
the City’s ability to achieve the transition within the proposed timeline.
PAO status
Since staff last provided an update to the Council in August 2011, there has been
one significant development at the PAO. The City was informed recently that the
FAA has issued a Determination of Non-Compliance to Santa Clara County
Airports – FAA Docket No. 16-11-06. This Non-Compliance Determination was
issued by the FAA Director, Office of Airport Compliance and Management
Analysis on December 19, 2011. The Director determined that Santa Clara County
is in violation of a federal grant agreement’s grant assurances 5 and 22, and the
County has appealed this non-compliance determination.
The County’s non-compliance has ramifications for the City. Because the violation
is specific to the airport sponsor, the County, all airports under the management
and control of the County are affected. This means that PAO is subject to the
consequences of the County’s violation, which relates to an application for a sky-
diving operation at South County Airport that the County has deemed unsafe.
The FAA has rejected the County’s position, thus, until this matter has been
resolved, the FAA will not act upon any request for financial assistance.
City staff, CommuniQuest, and Santa Clara County Airport staff met with the FAA
on March 7th. The following are the FAA responses to questions posed at the
meeting.
1. Question: If the County’s non-compliance remains unresolved, would
the County be permitted to file a grant application on behalf
of PAO?
Answer: The County may apply, but the application will not be
processed until the non-compliance issue is resolved.
2. Question: Could the City, as the owner but not the operator of PAO,
apply for the grant? Or would a transfer/transition back to
the City have to occur prior to the filing of the grant
application? Answer: The City cannot apply for or be the
sponsor of the grant application. The transition to the City
must occur prior to FAA action on the grant application.
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3. Question: Would the FAA consider the City’s intention to
transfer/transition full operation back to the City by July 1,
2013 in waiving the County’s non-compliance?
Answer: No.
4. Question: With an affirmative consideration from the FAA or even as a
condition to the grant application, could the City apply for
the grant?
Answer: FAA would not consider.
The FAA informed the City and County that all of these queries were discussed
with the Los Angeles FAA Regional Office. The FAA Assistant Director of
Operations in Brisbane made every effort to work with the Regional Office in
arriving at the mutually agreeable solution of the City’s intent, to no avail. In
summary, if the County is the operator of PAO, federal funding will not be
forthcoming until the non-compliance matter has been resolved.
A discussion took place regarding the condition of the pavement at PAO. Users
have complained and there is a need for rehabilitation as safety is a concern. The
County indicated a CALTRANS Division of Aeronautics inspector (see attached
letter) did make a site visit and a letter was sent to the County outlining current
issues at the PAO. Since the County is appealing the FAA’s determination, the
current decision is in force; therefore no grants to the Santa Clara County Airports
will be awarded.
Airport Layout Plan (ALP) and City Land Use Plans
According to FAA staff the City will need to create an updated ALP prior to the
effective date of transfer of control of PAO from the County to the City.
According to the FAA, the five primary purposes of an ALP are:
1. An approved plan is necessary for the airport to receive financial assistance
under the terms of the Airport and Airway Improvement Act of 1982 (AIP),
as amended. An airport must keep its ALP current and follow that plan,
since those are grant assurance requirements of the AIP and previous
airport development programs, including the 1970 Airport Development
Aid Program (ADAP) and the Federal Aid Airports Program (FAAP) of 1946,
as amended.
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2. An ALP creates a blueprint for airport development by depicting proposed
facility improvements. The ALP provides a guideline by which the airport
sponsor can ensure that development maintains airport design standards
and safety requirements, and is consistent with airport and community land
use plans.
3. The ALP is a public document that serves as a record of aeronautical
requirements, both present and future, and as a reference for community
deliberations on land use proposals and budget resource planning.
4. The approved ALP enables the airport sponsor and the FAA to plan for
facility improvements at the airport. It also allows the FAA to anticipate
budgetary and procedural needs. The approved ALP will also allow the FAA
to protect the airspace required for facility or approach procedure
improvements.
5. The ALP is a working tool for the airport sponsor, including development
and maintenance staff.
The ALP includes a scaled, graphical presentation of the existing and future
airport facilities, their location on the airport campus, and pertinent clearance
and dimensional information. The ALP is a major product of an existing Airport
Master Plan (AMP) which contains information used by the FAA to program future
funding assistance and to monitor the airport’s compliance with design standards
and grant assurances. FAA regulations dictate that an ALP remains current for a
five-year period, or longer, unless major changes at the airport are made or
planned.
The City currently has in place a Palo Alto Airport Comprehensive Land Use Plan
(PAO CLUP) and a Baylands Master Plan (BMP). The PAO CLUP regulates
development near the airport and reflects federal and state standards for
development near airports. The BMP contains policies for the Baylands and
incorporates the PAO CLUP. The County of Santa Clara Roads and Airports
Department has a PAO Master Plan (AMP) and PAO Airport Layout Plan (ALP).
The ALP is incorporated into the AMP. A key part of creating an updated PAO ALP
will be for the City to ensure the policies; standards and language identified in the
new ALP are consistent. For example one issue that will need to be reviewed
concerns BMP language that currently says “in general make no changes in airport
activities that will increase the intensity of airport use or significantly intrude into
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open space” (BMP, 2008 p.179). This language may need to be revisited to
determine what future improvements will or will not be permitted at PAO.
Environmental Issues
There are environmental issues connected with soil and groundwater
contamination identified by the City after it conducted a Phase II Environmental
Site Assessment. The City notified the appropriate regulatory agencies of this
contamination, including the Regional Water Control Board (RWQCB) and the
County Department of Environmental Health Services (SCDEH). The SCDEH has
now taken on lead responsibility for this matter. SCDEH has recently sent out
letters to the County Department of Roads and Airports (SCDRA), the City of Palo
Alto (as land owner), Palo Alto Fuel Service Farm (tank operator) and Rossi
Aircraft Inc. (tank operator) of their status as a responsible party. The SCDRA has
been asked to pay fees, sign a remedial action agreement and initiate action to
put together a remedial action plan.
Contract and Regulatory Considerations
The return of management and control of PAO to the City will require the
negotiation and execution of many documents (see attached Contracting and
Regulatory Requirements document) with the County and other interested
parties, and one or more of those documents may require the prior approval of
federal and state agencies. For example, whenever the sponsorship of a general
aviation airport like PAO will change, federal regulations require a thirty-day
public review and comment period; interested parties may file comments
regarding that change with the Federal Aviation Administration (FAA). State
regulations require the City to procure an airport operating permit from the State
Department of Transportation before the City can assume management and
control of PAO.
In 1971, the State Lands Commission entered into a lease with the County
regarding the land on which PAO is located, notwithstanding that the City had
previously entered into a ground lease with the County in 1967. The Commission
claims under the public trust doctrine all or a part of the land on which PAO is
located are owned by the State and thus subject to the Commission’s jurisdiction;
hence the City must secure a lease from the Commission. Several years ago, the
City and the Commission agreed to disagree on who holds title to all or a portion
of the tidelands on which the former Sea Scout Building (now Environmental
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Volunteers Building) is located, and the matter was resolved when the parties
entered into a lease. For land title research purposes, the former Sea Scout
Building and PAO are located on the same land. This is a matter that the City will
attempt to address as the City moves forward to secure management and control
of PAO.
Among the several contracts that the City must account for during this transition
are the County leases with the FAA for the control tower, the two fixed-base
operator (“FBOs”) leases that facilitate the provision of airport-related services,
and about dozen contracts between the FBOs and the special air services
organizations (“SASOs”). For outstanding FAA grant agreement purposes, when
the City assumes management and control of PAO, the FAA likely will require the
City to be the sole sponsor of PAO, so this matter will be addressed as well.
As federal law permits the City to seek reimbursement of its costs incurred in
connection with management and control of PAO over a six-year ‘look back’
period, the City must implement the necessary actions to enable the City to
successfully apply for cost reimbursement. Staff anticipates that the General
Fund will provide non-airport-related services to the Airport Enterprise Fund,
including, but not limited to, Police, Fire, Attorney, Human Resources and
Administrative Services support services, by a memorandum of understanding to
reflect the terms and condition of services, thereby ensuring the necessary
documentation is in place to pass FAA muster.
Staff anticipates that if the Council appoints in the future an airport commission
to oversee the long-term policy implications of the City’s management and
control of PAO, an ordinance establishing such a commission will be required.
Fixed Based Operator (FBO) Leases
The current lessees include: Palo Alto Fuel Services (Roy Aero) and Rossi Aircraft
(Dr. Brandt). The leases expire in December 2013 and November 2014,
respectively, though each lessee has the option to extend the lease to 2017. The
City has met with Ms. Pat Roy and indicated to her it would be interested in
extending the current lease to 2017 when the last extension option becomes
available in 2013 and then runs concurrent to the lease between the County and
the City through 2017.
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Joint Community Relations Committee (JCRC)
There is as the Council is aware the JCRC. This group was established by the Santa
Clara County Airports Commission in 1987 to provide advice and
recommendations on the subject of aviation issues related to the airport. Staff
from the City is attending the JCRC meetings which occur monthly at the airport.
Staff has also been working informally with some Palo Alto residents, all pilots.
They include Ralph Britton, Santa Clara County Airport Land Use Commissioner
(ALUC) and JCRC member; Chuck Byers, President and CEO of Z-Plane Inc.; and
Bob Lennox also a JCRC member who is a captain with Professional Pilot Services.
The internal staff team has met with this group twice in the past three months to
discuss the current status of the PAO and transitioning management and control
of PAO from the County to the City.
Timeline
Staff recommends the City work towards assuming Operational and Management
control of the Palo Alto Airport by no earlier than between July 1 and
December 31, 2013 based on the list of tasks and milestones included here:
Airport transfer operational items
FAA noncompliance order with Santa Clara County Dept. of Roads and
Airports (SCDRA).
FAA must post in the Federal Register a thirty-day notice that Palo Alto files
an application to be the Federal sponsor of PAO and consequently Santa
Clara County’s grant assurances and other federal obligations associated
with PAO will be affected once the transfer occurs. The FAA will require the
City to file a letter, declaring its intention to serve as the sponsor of PAO.
Update of the Airport Layout Plan (ALP) including environmental review.
The FAA indicated the current plan is approximately 4 years old and was
last updated in 2008.
The City will need to execute an as-yet undetermined number of contracts
and secure other documents to effect the transition of the PAO.
County creates and implements an environmental remediation action
cleanup plan and schedule to address the environmental soil and
groundwater contamination identified by Northgate Environmental.
Palo Alto ad hoc citizen’s advisory panel created by the City Manager.
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An updated ALP will need to be reconciled with existing land use plans and
documents which will include working with the Santa Clara County Airport
Land Use Commission (ALUC) and Palo Alto Planning and Community
Environment (PCE) Department.
Airport and related land transfer and lease termination agreements
executed with SLC, SCDRA, the County, and the Federal Aviation
Administration (FAA).
Staff is meeting again with the FAA on May 8th to discuss the required steps in
more detail. Following the meeting with the FAA, staff will be meeting with
SCDRA and SCDEH staff to discuss a schedule for completing the necessary steps
for PAO transfer from County to City control.
Resource Impact
There will be an increase of one full time equivalent staff (1 FTE) in the Public
Works Department, Airport Enterprise Fund. The position is Airport Manager and
the estimated compensation is approximately $140,000 excluding benefits and is
included in the Public Works budget requests for FY 2013. In addition, we
anticipate incurring legal costs of approximately $100,000, additional consulting
costs of approximately $100,000 (ALP plan update) and related costs. The
anticipated legal costs can be covered by existing encumbered funds. If the legal
costs are higher staff will return to the council for additional authorized funding.
The $100,000 for consulting costs will be requested as an Exhibit B item as part of
the FY13 operating budget. The council may recall that it appropriated $300,000
for the Airport Enterprise fund through funding provided by the General Fund.
These funds will be reimbursed from the Airport Enterprise Fund once PAO starts
to general surplus revenue.
Policy Implications
Actions recommended in this report are consistent with previous council guidance
and discussions.
Environmental Review
At the present time, no environmental impacts associated with the transfer of
operations back to the City have been identified. The FAA may request a
Categorical Exemption, but there is no impediment anticipated at this time for
approval.
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Attachments:
A: Airport Manager (DOC)
B: PAO inspection letter 2012 01-19 (PDF)
C: Recommendations for Airport Governance, January 6, 2012 (DOC)
D: Santa Clara 1-4 letters Palo Alto dated 022012 - PA Airport-Property Owner - PA as RP
(PDF)
E: Santa Clara 2-4 letters PA Fuel Service Farm dated 022012 - PA Airport-Current Tank
Operator - PA Fuel Service Tank as RP (PDF)
F: Santa Clara 3-4 Rossi Aircraft letters dated 022012 - PA Airport-Current Tank Operator -
Rossi Aircraft Inc as RP (PDF)
G: Santa Clara 4-4 letters Roads and Airport dated 022012 - PA Airport-Business Owner-
Operator - County Roads and Airports Dept as RP (PDF)
H: Santa Clara County letter Roads and Airport Director dated 022012- Remedial Action
Agreement to Director Murdter (PDF)
I: Airport Map Exhibit4-24-12 (PDF)
J: Attorney's Office Tasks Regarding PAO Transition (XLS)
Prepared By: Rob Braulik, Assistant Director of Administrative Services
Department Head: J. Michael Sartor, Director
City Manager Approval: ____________________________________
James Keene, City Manager
ATTACHMENT A
CITY OF PALO ALTO
Job Description AIRPORT MANAGER
Department: PUBLIC WORKS
Division:
Accountable to: Director Classification:
Supervisory: Yes Effective Date:
JOB SUMMARY:
Incumbents are responsible for managing, promoting, coordinating and supervising the daily operations of
the Palo Alto Airport. Typical duties include: tenant and customer relations; management, oversight of
maintenance, construction and development projects; ensures contractual compliance for all airport
tenants and their related activities and ensures compliance and is acquainted with local state and federal
regulations and mandates particularly those administered by the Federal Aviation Administration.
Represents the City at Airport events and functions; Council, Commission and Board meetings; develops
and makes recommendations regarding Airport operations and policies; develops, monitors and analyzes
the Airport budget; supervises Airport employees, makes recommendations relative to personnel
management and operates under the general direction and supervision of the Director of Public Works.
DISTINGUISHING CHARACTERISTICS:
Incumbents plan and assess operational goals and objectives relative to Airport functions and programs.
The Airport Manager is responsible for management of operations of significant depth and complexity.
Responsibilities include: overall management, developing budgets and allocating resources; developing and
implementing cost recovery strategies; and internal and external functional coordination. Incumbents
facilitate long-range planning efforts and develop team and individual work plans accordingly. Incumbents
manage service contracts, Requests for Proposal, evaluate proposals, manage facilities, negotiate contracts,
and oversee consultant services. Supervisory responsibilities may include supervisors, management and
non-management employees, decisions regarding hiring and termination, evaluating performance,
coaching, training, and administering disciplinary actions. Incumbents resolve more complex customer
service issues and represent the Airport and the City at large. Incumbents work actively to foster
community relationships and demonstrate the value of the Airport as a public and community asset.
ESSENTIAL DUTIES:
1. Supervises technical, clerical, and lead staff to include: prioritizing and assigning work; conducting
performance evaluations; ensuring staff is trained; and making hiring, termination and disciplinary
recommendations.
2. Directing the activities of the airport to include overseeing the development and administration of
policies, procedures, programs, goals and objectives.
3. Provides complex administrative and professional assistance to the Director.
4. Serves as a lead in cross-division teams and cross-department initiatives and programs.
5. Reviews Airport operations to determine the efficiency and effectiveness of services and/or
programs
CITY OF PALO ALTO
Job Description AIRPORT MANAGER
4/17/2012 Page2 of 4
6. Coordinates activities, services and programs with other agencies, partners, departments, and/or
other applicable parties.
7. Recommend, negotiate and administer contracts with concessionaires and prospective users of
airport facilities.
8. Initiates and monitors the progress of special studies.
9. Monitoring process of contracts; evaluates services performed and costs for services obtained
through outside contractors and vendors.
10. Recommend implementation of aviation services in the City; propose modifications, improvements
and development of airport facilities and manage the maintenance program.
11. Develop, recommend and administer a fee schedule for the use of airport facilities and services.
12. Establish and direct the enforcement of airport operating rules; interpret and enforce local, state
and federal rules and regulations governing the use of airport facilities and services.
13. Manage grant applications for capital outlay projects; participate in long and short-range planning
for airport development, operations, facilities and policies; conduct studies to determine usage and
assess need for improvement; promote safety in airport operations and services.
14. Notify proper emergency response organizations and provide assistance and coordination in the
event of an emergency.
15. Participates and provides expertise to a variety of Advisory group and Airport related committee
meetings.
16. Prepare periodic and special reports regarding airport operations, activities and finances; maintain
accurate records and files.
17. Represents the department and/or the City to the public, to other agencies, and to regional and
sub-regional committees, including conducting public meetings, making presentations, and
responding to requests for information.
18. Serves as the liaison to community groups and City departments. Develops, maintains, and fosters
an effective working relationship with related public, private, and community organizations,
granting agencies, and other related outreach services. Works to identify other partner
organizations in the community.
19. Responds to and resolves sensitive and/or the complex questions or concerns from the general
public, partners, the business community, and staff.
20. Responds to inquiries and concerns from citizens, the media, and government authorities.
21. Attends, chairs, and conducts a variety of meetings; serves on committees as requested; makes
presentations to the City Council; represents the Department and makes oral presentations at
meetings, inter-agency meetings, conferences and other events.
22. Prepares and develops budgets, which may include capital improvement program budgets;
monitors revenues; monitors and approves expenditures in accordance with policies and principles
of sound fiscal management. Develops and maintains analytical tools for audit and control of
programs and to attain revenue targets. Manages finances for grant and partnership programs.
Performs other duties of a similar nature or level.
MINIMUM QUALIFICATIONS:
Sufficient education, training and/or work experience to demonstrate possession of the following
knowledge and skills, which would typically be acquired through:
CITY OF PALO ALTO
Job Description AIRPORT MANAGER
4/17/2012 Page3 of 4
Bachelor’s Degree in a relevant field and eight years of related experience, including five years of
management level experience; or, an equivalent combination of education and experience sufficient to
successfully perform the essential duties of the job such as those listed above. Master’s degree is preferred.
Licensing Requirements:
Depending on area of assignment, some positions may require by Municipal Code, State or Federal law one
or more of the following:
• Valid California Driver’s License;
• Accreditation as an Accredited Airport Executive, Certification as an Airport Certified Employee in
Operations is highly desirable. A Pilot’s license is also desirable, but not a condition for hire.
ENTRY REQUIREMENTS FOR: KNOWLEDGE and SKILLS:
Qualification to enter this position requires knowledge of the following:
Operations characteristics, services and activities of a general aviation airport service area;
Principles and practices of aviation administration;
Methods and techniques of efficient airport operations;
Airport land use and zoning regulations;
Public and business administration principles and practices;
Applicable Federal, State, environmental and local laws, rules, and regulations;
Budgeting principles and practices;
Financial management principles including in the areas of government programs, financial grants,
and community resources.
Public administration principles;
Public relations, advertising and marketing principles;
Negotiation and mediation techniques;
Strategic planning and long-range planning;
Contract administration principles;
Program/project management planning principles and techniques (including the ability to analyze
operating procedures and recommend program improvements, and program restructuring, as
needed);
Performance measures and quality of service concepts including the ability to evaluate
organizational development efforts and programs;
Brown Act meeting laws and parliamentary procedures
Qualification to enter this position requires skill in:
Monitoring, supervising, leading and evaluating subordinate staff;
Prioritizing and assigning work and develops a teamwork environment;
Developing and implementing strategic plans, policies and objectives
Using a computer and related software applications;
Defining problems, collecting data, establishing facts, and drawing valid conclusions;
Preparing reports; reading, analyzing, and interpreting technical procedures, and governmental
regulations, statutes, and policies;
Writing reports and correspondence;
Managing division operations;
CITY OF PALO ALTO
Job Description AIRPORT MANAGER
4/17/2012 Page4 of 4
Analyzing and developing policies and procedures;
Applying program practices to complex situations;
Mediating and negotiating hostile situations;
Demonstrated experience managing customer service staff and identifying and implementing
customer service standards to ensure high customer satisfaction;
Providing public relations;
Developing and editing marketing, fundraising and promotional materials
Managing projects and programs;
Evaluating programs, services and customer service efforts
Preparing and administering budgets, including setting and attaining revenue targets if applicable;
Preparing and giving presentations, including presentations at community or inter-agency meetings
and presentations at public hearings of the City Council, City Boards and Commissions, and other
external audiences;
Facilitating meetings;
Highly effective communication, interpersonal and collaboration skills;
Exercising sound judgment and decision making.
PHYSICAL REQUIREMENTS:
Positions in this class typically require: reaching, standing, walking, lifting, fingering, grasping, talking,
hearing, seeing and repetitive motions.
Light Work: Exerting up to 20 pounds of force occasionally, and/or up to 10 pounds of force frequently,
and/or negligible amount of force constantly to move objects. If the use of arm and/or leg controls requires
exertion of forces greater than that for Sedentary Work and the worker sits most of the time, the job is
rated for Light Work.
This position requires flexible scheduling and the ability to attend numerous night meetings, weekend
special events and to be able to work staff needs.
STATE OF CALIFORNIA nUSINESS TRANSpoRTATION AND HOUSING AGENCY EDMUND G BROWN IE Goyernor
DEPARTMENT OF TRANSPORTATION
DIVISION OF AERONAUTICS -M.S. #40
1120 N STREET, SUITE 3300
P. O. BOX 942873 Rl:UD01.23.'1208:04 Flex yOllr pOlller! SACRAMENTO, CA 94273-0001 Be energy efficient'
PHONE (916) 654-4959
FAX (9 16) 653-9531
TTY 711
www.dot.ca.gov
January 19,2012
Mr. Carl Honaker
Director of Aviation
County of Santa Clara
2500 Cunningham Avenue
San Jose, CA 95148-1001
Dear Mr. Honaker:
The California Department of Transportation (Department), Division of Aeronautics, conducted a
State permit compliance inspection and Federal Aviation Administration (FAA) Airport Master
Record (5010) update at Palo Alto Airport (FAA Site No. 02022. * A) on January 11 ,2012. We
appreciate the assistance and cooperation provided during the inspection. The updated information
wi II be entered into our records.
Our inspection revealed the following items we bring to your attention:
I. A number of concrete bases (supporting Runway End Identification Lights and levee obstruction
lighting) located in Runway Safety Area (RSA) rise above their surrounding surface more than 3
inches (see enclosed photographs I and 2). These concrete pads present hard-stop obstructions
to an aircraft during an excursion from the runway and must be lowered, or the surrounding soil
raised flush to their edges, in accordance with (lAW) FAA Advisory Circular (AC) 150/5300-
13, Airport Design.
2. Numerous trees on the west side of the airport, located on the Palo Alto Golf Course, have been
allowed to grow to a height that exceeds the Federal Aviation Regulations (FAR) Part 77,7:1
Transitional Surface (see enclosed photographs 3 through 7). In accordance with the conditions
of your State Permit, these trees must be trimmed below the 7:1 Transitional Surface or
removed. Palo Alto airport is required by the California Code of Regulations (CCR) Title 21 ,
Section 3542 Airport Design Standards, to maintain obstruction-free FAR Part 77 imaginary
surfaces to the airport to preserve the public use of the airport and continue to operate at night.
Additionally, California Public Utility Code (PUC) 21659 prohibits structural and natural
growth hazards near airports which exceed FAR Part 77 imaginary surfaces and states in part:
No person shall construct or alter any structure or permit any natural growth
at a height which exceeds the obstruction standards set forth in the regulations
of the Federal Aviation Administration relating to objects affecting navigable
airspace contained in title 14 of the Code of Federal Regulations, Part 77,
Subpart C, unless a permit allowing the construction, alteration, or growth
is issued by the Department.
"Callrans improves mobility across California"
Mr. Carl Honaker
January 19,2012
Page 2
It is, therefore, essential that these trees and any other penetration hazards along the west side of
Runway 13/31 remain clear of the FAR Part 77,7: I Transitional Surface. Clear Transitional
Surfaces at the airport protect pattern and go-around traffic, especially during night operations.
Cooperatively accomplishing the trimming and/or removal of these trees within a reasonable
time frame will preclude the need for formal action being taken by the Department, which could
include the suspension of night operations. Please respond by February 20,2012, with your
plan to address and correct this safety issue. Obstruction removal is an eligible project for the
FAA and State Airport Capital Improvement Project program.
3. Gopher holes in the RSA located on both sides of Runway 13/31 must be filled and compacted
flush-to-grade, lAW FAA AC 150/5300-13, Airport Design. This is an ongoing project, as
discussed, and we strongly encourage a regular, diligent inspection and maintenance program in
an effort to reduce or eliminate new and existing potential hazards.
It is the Department's objective to ensure that airports meet all current applicable FAA minimum
design safety standards and AC criteria, F ARs, the California Public Utilities Code Section 2100 I et
seq., the California Code of Regulations Title 21 , Sections 3525-3560, and all required conditions
depicted in your State Airport Permit issued by the Department. All referenced publications in this
letter, including many FAA ACs, may be found on our website at: www.dot.ca.gov/aeronautics.
We are pleased to support and assist you in enhancing safety and utility at your airport, and look
forward to continuing a cooperative relationship with the Palo Alto Airport. Please notify us by
February 20,2012, of your intended or completed actions concerning the items listed above and
provide photographic evidence documenting the results. If you have questions or require assistance,
please contact me at (916) 654-5 I 74, or via email atdon.haug@dot.ca.gov.
Enclosures
c: Mr. Howard Chang, FAA, SFO ADO
"Caltrans improves mobility across Califor,tio"
Mr. Carl Honaker
January 19,2012
Page 3
Concrete base exceeds 3 inches above grade.
2
"Caltrons improves mobility across Cali/omia"
Mr. Carl Honaker
January 19, 2012
Page 4
50+ foot-tall trees, near approach end of Runway 13, penetrate the western 7: I Transitional Surface.
Photo ra h 4
trees penetrate the western 7: I Transitional Surface.
"Caltrans improves mobility across California"
Mr. Carl Honaker
January 19,2012
Page 5
35+ foot-tall trees penetrate the western 7:1 Transitional Surface.
tree penetrates the western 7: I Transitional Surface.
"GoItrons improves mobility across California"
Mr. Carl Honaker
January 19, 2012
Page 6
Location of trees that penetrate the western 7:1 Transitional Surface.
"Caltrons improues mobility across Cali/amio"
Recommendations for Airport Governance – January 6, 2012 Page 1
ATTACHMENT C
RECOMMENDATIONS FOR FUTURE GOVERNANCE OF PALO ALTO AIRPORT
(PAO)
The City of Palo Alto has requested specific recommendations with regard to future
control of the Palo Alto Airport. The analysis considers the options of a Third Party
Management Contract versus full control and management by the City.
The recommendations presented are a result of data reviewed in the Weidemann &
Associates Draft Business Plan Report, dated February 2010, presented to City Council
at their meeting on December 6, 2010 and subsequent data gathered and the expertise
provided by CommuniQuest Project Manager, Ms. Klaasje Nairne, CAE, CM.
Current Status
In essence, the City is currently managing the airport with a third party management
contract or lease with the County of Santa Clara. Although the County has operated
the airport effectively over the term of the lease, they have indicated the Airport is a
financial drain and is no longer a self sustaining enterprise fund. There are several
factors that may lead to this assumption, but a review of the financial data does not
support that finding. This will be discussed further in the section that assumes direct
management of the Airport by the City.
Third Party Management
The Weidemann Report, hereinafter referred to as “Report”, analyzes this scenario as
the most financially feasible alternative; however, governance implications will continue
to exist even if a management contract can be more narrowly defined than the current
lease with the County. As the Report suggests, this is quite possibly the lowest financial
risk of the two management options. Additionally it does not burden the City with
additional staff, nor does it require day-to-day management responsibility and the
Contractor would make periodic payments to the City. A copy of page 46 of the Report
is attached for further review. It demonstrates the financial pro-forma of a third party
operation for the period of 2012-2017.
Third Party Management is not a recommended option. There is current instability in
the relationship with the County and City. Tenants are displeased and have voiced that
opinion to City management. Under third party control and management, this tension
is likely to repeat itself. The Palo Alto Airport Working Group (PAAWG) Report dated
May 2007 examined a multitude of scenarios, but in the end found it best for the City to
have direct control even if through a non-profit management firm to be paid from
airport operations. Although this may sound inviting and altruistic, employees with
Recommendations for Airport Governance – January 6, 2012 Page 2
airport expertise would still have to be hired and paid from airport operations. It might
also lend itself to potential conflicts of interest.
Additionally it must be noted that the FAA has expressed considerable concern with
regard to long term leases or management contracts of an airport. The issue of
revenue diversion is the most contentious. As the Weidemann Report suggests,
incentives to privatize or use third party management are constrained by revenue
diversion regulations. Assuming a contract is developed and revenues are paid by the
Contractor to the City, the City must reinvest those revenues in the airport, i.e. capital
development. Under current Federal law, the City could not divert the revenue to other
uses. So, although the Report indicates that over the long term (2017-2037) the City
could potentially receive $16.98 million in revenue, this must be reinvested at the
airport. There is, of course, some allowance for administrative oversight by the City,
but these must be fully justified.
City Operation and Management of PAO
Day to day involvement by the City is key to the success of the future operation and
management of the Palo Alto Airport. It is clear that the current structure is no longer
viable. Questions of responsibility, maintenance, grant funding, capital development,
environmental issues and cleanup are continual.
Although a Master Plan was developed, the City had issues with various development
projects, specifically the plan to add hangars. The County has indicated that if the City
was in disagreement with the Plan, it would be their responsibility to change it since
most of the development projects shown in the Plan would come under the “City’s
Watch”. It was also noted by the County that the Environmental Review of the Master
Plan, with or without changes, would be the responsibility of the City.
The County has scaled down the capital improvements for the future. A copy of the
current Airport Capital Improvement Plan (ACIP) is attached, but the County has
advised that this is currently in revision to reflect a more conservative approach. FAA
grants are available for funding but again, there is a grant match requirement and the
County is reluctant, if not unwilling to provide those matches for the remainder of the
lease term. Grant matches are routinely provided from airport revenues, but the
County has also stated that PAO is not self sustaining and therefore cannot provide the
match.
It is recommended that the City assume control of the Palo Alto Airport by July 1, 2013
and operate the Division of Airports within the budgetary control of the Public Works
Department. This recommendation is based on the following:
Recommendations for Airport Governance – January 6, 2012 Page 3
Pros outweigh the cons in the City Management Option
o Greater control of all airport operations.
o Positive net revenues over the long term. Although the short term might
produce some risk to the City, it is minimal, if at all.
o Monitoring and controlling of capital development and infrastructure
needs. There is growing concern that the Airport is in a state of disrepair
and presents a potential safety hazard. Current capital investment is of a
band-aid nature.
o The City can deal directly with Airport users, tenants and neighbors and
although there is potential for political ramifications, the value of the
Airport to the community negates those risks.
o The City can recruit and direct Airport staff. Personnel issues may arise,
but the City has the control and will not be reliant upon a third party to
attend to the day-to-day operation and administrative control of the
Airport.
The Weidemann Report Revenue Projections
Although the Report makes a variety of assumptions, including hangar and apron
development, these are in conflict with the Baylands Master Plan; however, even
without this development, the return of hangars to County operation reveals a positive
cash flow for the period beginning in 2018. There is a net revenue loss of -$129,200
projected for the period of 2012-2017. There are many assumptions built into this
projection, including a rather high level of City staffing. The net loss projection could
be vacated by a more conservative approach.
Financial Analysis of the Current County Budget for PAO
The County has provided financial date for PAO. It is summarized as follows:
Fiscal Year 2010/11 Fiscal Year 2011/12
Personnel Costs: 260,119 260,497
Services/Supplies: 151,940 139,320
Sub Total Expenses: 412,059 399,817
Revenues: 890,400 750,500
Difference: 478,341 350,683
*Percentage of Airport Administrative Costs 229,731 237,787
**Other Expenses: 134,114 161,483
Recommendations for Airport Governance – January 6, 2012 Page 4
Total Expense: 775,905 799,088
Difference: $114,495 $48,588
*Total admin costs for Reid-Hillview, South County and PAO were $689,193. Each
airport is allocated 33% of the total costs.
**Other Expenses include Insurance, Internal Professional Services, Direct
Departmental Charges, and County Overhead.
Comments: As you will note, there are charges to PAO that could be substantially
reduced under City control. Also, there was a reduction of $98,000 in revenue from
aircraft tiedown storage. It is assumed spaces were vacated by a recent rate increase.
Fuel Flowage volume was also down by $12,000. Again, a reflection of the rate
increase.
Assuming the City takes control and staffs the airport at the level suggested below,
uses the same Expense estimates, reduces the charges for Administration 50%, charges
the same amount for Other Expenses and keeps Revenues at the level projected in
2011/12, the following scenario would result:
*Personnel Costs:
Airport Manager $109,262
Sr. Airport Ops Worker 60,590
Airport Ops Worker 56,368
Sub Total: $226,220
Services/ Supplies 139,320
Sub Total Expenses: $365,540
Revenues: 750,500
Difference: $384,960
Airport Administrative Costs: 118,894 (50% of $237,787)
Other Expenses: 161,483
Total Expense: $645,917
Difference: $104,583
*Napa County was used as the comparable airport for salary costs and selected
positions. These figures are for the highest salary level, but do not include insurance
and other benefits.
Recommendations for Airport Governance – January 6, 2012 Page 5
I do not believe the expenses for administrative costs and other ancillary expenses
would be as high as projected here, but they are presented for comparative purposes.
Conclusion
The City of Palo Alto is in a good position to take over control of PAO by the beginning
of fiscal year 2012/2013. Based on the financial data I have gleaned from a variety of
sources, PAO can operate as a self-sustaining enterprise fund, even with a full
complement of staff and some very healthy administrative overhead charges.
It is obvious, also based on my own knowledge and experience, the community is
better served by local control of this valuable asset. The Weidemann Report suggests
that is a very viable option and even though it is an earlier document, the PAAWG
report supports that opinion as well.
Attachments
(1) Pg. 46 Weidemann
(2) ACIP for PAO
Prepared by: Klaasje Nairne, CAE, CM
January 6, 2012
County of Santa Clara
Department of Environmental Health
1555 Berger Drive. Suite 300
San Jose. California 951 12-2716
(408) 918-3400
www.EHinfo.org
February 20, 2012
RECEIVED
CITY OF PALO ALTO
FEB 2:12012
PUBUCWORKS
ADMINISTRATION
Mr. Rob Braulik, City Manager's Office
City of Palo Alto
250 Hamilton Avenue, 7th Floor
Palo Alto, California 94301
Subject: Notice of Responsibility
Site Name: Palo Alto Airport
Site Address:
City/State/Zip:
APN:
Dear Mr. Braulik:
1901, 1903, 1925 Embarcadero Road
Palo Alto, CA 94303
008-06-001
A Phase II Environmental Site Assessment was submitted to our office for this site. Based on
this report, petroleum hydrocarbon contamination was found in soil ~nd shallow groundwater in
the area of the fuel tank farm, pump island, and airplane wash rack area.
The following party has been added as a party responsible for investigation and cleanup of the
above site for the following reason:
Responsible Party:
Responsible Party Contact:
Address:
City/State/Zip:
Add: X Reason:
Delete: Reason:
Change: Reason:
City of Palo Alto'
RoJ Braulik, City Manager's Office
250 Hamilton Ave., th Floor
Palo Alto, CA 94301
Property Owner
The other identified responsible parties are:
Responsible Party: Rossi Aircraft Inc.
Responsible Party Contact:
Address: 1903 Embarcadero Rd.
Board of Supe(Visors: Mike Wasserman. George Shirakawa. Dave Cortese. Ken Yeager. Liz Kniss
County Executive: Jeffrey V. Smith II
'-001
Mr. Braulik
February 20,2012
Page 2 of3
City/State/Zip:
Reason:
Responsible Party:
R~sponsible Party Contact:
Address:
City/State/Zip:
Reason:
Responsible Party:
Responsible Party Contact:
Address:
City/State/Zip:
Reason:
Palo Alto, CA 94303
Current Tank Operator
PA Fuel Service Tank Farm
Patricia Roy
1901 Embarcadero Rd.
Palo Alto, CA 94303
Current Tank Operator
County of Santa Clara, Roads and Airports Department
Chris Ellsbury
1505 Schallenberger Rd.
San Jose, CA 95131
Business Owner/Operator
County of Santa Clara, Hazardous Materials Compliance Division (HMCD) is naming the City of
Palo Alto as a responsible party (RP) for soil and groundwater contamination at the above
referenced site based on the concentration of contaminants detected in the soil and
groundwater saQ"lples collected at the site. Rossi Aircraft Inc. was named a responsible party
under Sections 101480 and 25260 of the California Health and Safety Code because the RP is
the BUSINESS/PROPERTY OWNERITANK OWNER/OPERATOR AT/AFTER the time the
contamination was discovered OR last known OWNER/OPERATOR of the business which used
the contaminants at the site. If thel RP wishes to appeal HMCD staff's designation as a
responsible party for this site, they should respond to this letter in writing. Should further
information become available which may require other parties to be named as additional
responsible parties, then please submit that information to HMCD. The RP may request to be
designated a secondary responsible party. This designation may be granted if the primary
responsible party is solvent and not recalcitrant and RP clearly did not initiate or contribute to
the actual discharge.
The RP may sign, or have signed, civil contracts, such as a business or property sales
agreement, which may require other parties to perform any or all environmental investigations
and potential remediation required by government agencies; however, RP will stilf be one of the
entities ultimately responsible for complying with all government agency requests under the
Health and Safety Code and the Water Code as a responsible party. Because the source of the
contamination does not appear to be an identifiable underground storage tank and the
contaminants do not appear to be petroleum based, this site will be opened under the County of
. Santa Clara's Voluntary Cleanup Program. The RWQCB and the Department of Toxic
Substances Control (DTSC) will be notified and given the opportunity to take the lead oversight
responsibilities. As a responsible party, Rossi Aircraft Inc. can also request either the RWQCB
or DTSC to be the lead agency through the Site Designation Process or the Brownfields
Mr. Braulik
February 20,2012
Page 3 of 3
Memorandum of Agreement process. Please contact Mark Piros of the DTSC at (510) 540-
3832 regarding the Site Designation Process or Nathan King of the RWQCB at (510) 622-3966
regarding the Brownfields Memorandum of Agreement process should the RP desire to have
another agency be the lead for this site.
If you have any questions, please call Ms. Lani Lee at (408) 918-1977
Michael Ballet
Program Manager
Hazardous Materials Compliance Division
Site Mitigation Program
cc: Chris Elisbury, County of Santa Clara, Roads and Airports Department
(Chris. Ellsbury@rda.sccgov.org)
Rossi Aircraft Inc., 1903 Embarcadero Rd., Palo Alto, CA 94303
Ms. Patricia Roy, PA Fuel Service Tank Farm, 1901 Embarcadero Rd., Palo Alto, CA
94303 -
I
County of Santa Clara
Department of Environmental Health
1555 Berger Drive. Suite 300
San Jose.· California 951 12-2716
(408) 918-3400
www.EHinfo.org
February 20,2012
Ms. Patricia Roy
P,A Fuel Service Tank Farm
1901 Embarcadero Road
Palo Alto, California 94303
RI::CEIVED
CllY OF PALO ALTO
FEB 232012
pUBUC WORKS
ADMINISTRATION
Subject: Notice of Responsibility
Site Name: Palo Alto Airport
Site Address:
City/State/Zip:
APN:
Dear Ms. Roy:
1901,1903,1925 Embarcadero Road
Palo Alto, CA 94303
008-06-001
A Phase II Environmental Site Assessment was submitted to our office for this site. Based on
this report, petroleum hydrocarbon contamination was found in soil and shallow groundwater in
the area of the fuel tank farm, pump island, and airplane washrack area.
The following party has been added as a party responsible for investigation and cleanup of the
above site for the following reason:
Responsible Party:
Responsible Party Contact:
Address:
City/State/Zip:
Add: X Reason:
Delete: Reason:
Change: Reason:
PA Fuel Service Tank Farm
PatriCia Roy
1901 Embarcadero Rd.
Palo Alto, CA 94303
Current Tank Operator
The other identified responsible parties are:
Responsible Party: Rossi Aircraft Inc.
Responsible Party Contact:
Address: 1903 Embarcadero Rd.
Board of Supervisors: Mike Wasserman. George Shirakawa. Dave Cortese. Ken .;Yeager. Liz Kniss
County Executive: Jeffrey V. Smith • '-001
Ms. Roy
February 20,2012
Page 2 of 3
City/State/Zip:
Reason:
Responsible Party:
Responsible Party Contact:
Address:
City/State/Zip:
Reason:
Responsible Party:
Responsible Party ,Contact:
Address:
City/State/Zip:
Reason:
Palo Alto, CA 94303
Current Tank Operator
City of Palo Alto
Rob Braulik, City Manager's Office
250 Hamilton Ave., ih Floor
Palo Alto, CA 94301
Property Owner
County of Santa Clara, Roads and Airports Department
Chris Ellsbury
1505 Schallenberger Rd ..
San Jose, CA 95131
Business Owner/Operator
County of Santa Clara, Hazardous Materials Compliance Division (HMCD) is naming PA Fuel
Service Tank Farm as a responsible party (RP) for soil and groundwater contamination at the
above referenced site based on the concentration of contaminants detected in the soil and
groundwater samples collected at the site. Rossi Aircraft Inc. was named a responsible party
under Sections 101480 and 25260 of the California Health and Safety Code because the RP is
the BUSINESS/PROPERTY OWNERITANK OWNER/OPERATOR AT/AFTER the time the
contamination was discovered OR last known OWNER/OPERATOR of the business which used
the contaminants at the site. If thel RP wishes to appeal HMCD staff's designation as a
responsible party for this site, they should respond to this letter in writing. Should further
information become available which may require other parties to be named as additional
responsible parties, then please submit that information to HMCD. The RP may request to be
designated a secondary responsible party. This designation may be granted if the primary
responsible party is solvent and not recalcitrant and RP clearly did not initiate or contribute to
the actual discharge.
The RP may sign, or have signed, civil contracts, such as a business or property sales
agreement, which may require other parties to perform any or all environmental investigations
and potential remediation required by government agencies; however, RP will still be one of the
entities ultimately responsible for complying with all government agency requests under the
Health and Safety Code and the Water Code as a responsible party. Because the source of the
contamination does not appear to be an identifiable underground storage tank and the
contaminants do not appear to be petroleum based, this site will be opened under the County of
Santa Clara's Voluntary Cleanup Program. The RWQCB and the Department of Toxic
Substances Control (DTSC) will be notified and given the opportunity to take the lead oversight
responsibilities. As a responsible party, Rossi Aircraft Inc. can also request either the RWQCB
or DTSC to be the lead agency through the Site Designation Process or the Brownfields
\
'\
Ms. Roy
February 20, 2012
Page 3 of 3
Memorandum of Agreement process. Plec;lse contact Mark Piros of the DTSC at (510) 540-
3832 regarding the Site Designation Process or Nathan King of the RWQCB at (510) 622-3966
regarding the Brownfields Memorandum of Agreement process should the RP desire to have
another agency be the lead for this site.
If you have any questions, please call Ms. Lani Lee at (408) 918-1977
Michael Balliet
. '. Program Manager
Hazardous Materials Compliance Division
Site Mitigation Program
cc: Rob Braulik, City Manager's Office, City of Palo Alto, 250 Hamilton Ave., 7th Floor, Palo
Alto, CA 94301
Chris Ellsbury, County of Santa Clara, Roads and Airports Department
(Chris. Elisburv@rda.scCQov.org)
Rossi Aircraft Inc., 1903 Embarcadero Rd., Palo Alto, CA 94303
, -
County of Santa Clara
Department of Environmental Health
1555 Berger Drive. Suite 300
San Jose. California 951 12-2716
(408) 918-3400
WWW.EHinfo.org
February 20, 2012
Rossi Aircraft Inc.
1,903 Embarcadero Road
Palo Alto, California· 94303
REceNEO
c\1'Y OF pAlO Al.:ro
FEB 2320\2
pUBUCWORKS
AtiMINIsmATlON
Subject: Notice of Responsibility
Site Name: Palo Alto Airport
Site Address:
City/State/Zip:
APN:
Dear Sir/Madam:
1901, 1903, 1925 Embarcadero Road
Palo Alto, CA 94303
008-06-001
A Phase II Environmental Site Assessment was submitted to our office for this site. Based on
this report, petroleum hydrocarbon contamination was found in soil and shallow groundwater in
the area of the fuel tank farm, pump island, and airplane washrack area.
The following party has been added as a party responsible for investigation and cleanup of the
above site for the following reason:
Responsible Party:
Responsible Party Contact:
Address:
City/State/Zip:
Add: X Reason:
Delete: Reason:
Change: Reason:
Rossi Aircraft Inc.
19P3 Embarcadero Rd.
Palo Alto, CA 94303
Current Tank Operator
The other identified responsible parties are:
Responsible Party:
Responsible Party Contact:
Address:
City/State/Zip:
Reason:
PA Fuel Service Tank Farm
Patricia Roy
1901 Embarcadero Rd.
Palo Alto, CA 94303
Current Tank Operator
Board of Supervisors: Mike Wasserman. George Shirakawa. Dave Cortese. KenYeager. Liz Kniss
County Executive: Jeffrey V. Smith II
8-001
Rossi Aircraft Inc.
February 20,2012
Page 2of3-,
Responsible Party: City of Palo Alto
Responsible Party Contact: Rob Braulik, City Manager's Office
Address: 250 Hamilton Ave., ih Floor
City/State/Zip: Palo Alto, CA 94301
Reason: Property Owner
Responsible Party: County of Santa Clara, Roads and Airports Department
. Responsible Party Contact: Chris Ellsbury
Address: 1505 Schallenberger Rd.
City/State/Zip: San Jose, CA 95131
Reason: Business Owner/Operator
County of Santa Clara, Hazardous Materials Compliance Division (HMCD) is naming Rossi
Aircraft Inc. as a responsible party (RP) for soil and groundwater contamination at the above
referenced site based on the concentration of contaminants detected in the soil and
groundwater samples collected at the site. Rossi Aircraft Inc. was named a responsible party
under Sections 101480 and 25260 of the California Health and Safety Code because the RP is
the BUSINESS/PROPERTY OWNERfTANK OWNER/OPERATOR AT/AFTER the time the
contamination was discovered OR last known OWNER/OPERATOR of the business which used
the contaminants at the site. If .the RP wishes to appeal HMCD staff's designation as a
responsible party for this site,. they should respond to this "letter in writing. Should further
information become available which may require other parties to be named as additional
res~onsible parties, then please s.ubm, that info~atio~ to ~MCD. The RP may .request .to be
deSignated a secpndary responsible party. ThiS deSignation may be granted If the pnmary
responsible party is solvent and not recalcitrant and RP clearly did not initiate or contribute to
the actual discharge,
The RP may sign, or have signed, civil contracts; such as a business or property sales
agreement, which may require other parties to perform any or all environmental investigations
and potential remediation required by government agencies; however, RP will still. be one of the
entities ultimately responsible for complying with all government agency requests under the
Health and Safety Code and the Water Code as a responsible party. Because the source of the
contamination does not appear to be an identifiable undergrou!1d. storage tank and the
contaminants do not appear to be petroleum based, this site will be opened under the County of
Santa Clara's Voluntary Cleanup Program. The RWQCB and the Department of Toxic
Substances Control (DTSC) will be notified and given the opportunity to take the lead oversight
responsibilities. As ,a responsible party, Rossi Aircraft Inc. can also request either the RWQCB
or DTSC to be the lead agency through the Site Designation Process or the Brownfields
Memorandum of Agreement process. Please contact Mark Piros of the DTSC at (510) 540-
3832 regarding the Site Designation Process or Nathan King of the RWQCB at (510) 622-3966
J
I..
Rossi Aircraft Inc.
February 20,2012
Page 3 of3 .
. regarding the Brownfields Memorandum of Agreement process should the RP desire to have
another agency be the lead for this site. .
If you have any questions, please call Ms. Lani Lee at (408) 918-1977
Sincerely,
Michael Ballie~
Program Manager
Hazardous Materials Compliance Division
Site Mitigation-Program
cc: Rob Braulik, City Manager's Office, City of Palo Alto, 250 Hamilton Ave., 7th Floor, Palo
Alto, CA 94301
Chris Ellsbury, County of Santa Clara, Roads and Airports Department
(Chris.Ellsburv@rda.scCQov.org)
Patricia Roy, PA Fuel Service Tank Farm, 1901 Embarcadero Rd., Palo Alto, CA 94303
County of Santa Clara
Department of Environmental Health
) 555 Berger Drive, Suite 300
San Jose, California 951 12-2716
(408) 918-3400
www.EHinfo.org
February 20, 2012
Mr. Chris Ellsbury
County of Santa Clara
Roads and Airports Department
1505 Schallenberger Road
San Jose, California 95131
RECEIVED
CITY OF PALO ALTO
FEB 23 ZOlZ
PUauCWORKS
ADMINISTRATION
Subject: Notice of Responsibility
Site Name: Palo Alto Airport
Site Address:
City/State/Zip:
APN:
Dear Mr. Ellsbury:
1901, 1903, 1925 Embarcadero Road
Palo Alto, CA 94303
008-06-001
A Phase II Environmental Site Assessment was submitted to our office for this site. Based on
this report, petroleum hydrocarbon contamination was found in soit and shallow groundwater in
the area of the fuel tank farm, pump island, and airplane wash rack area. .
The following party has been added as a party responsible for investigation and cleanup of the
above site for the following reason:
Responsible Party:
Responsible Party Contact:
Address:
City/State/Zip:
Add: X Reason:
Delete: Reason:
Change: Reason:
C~unty of Santa Clara, Roads and Airports Dept.
Chris Ellsbury, Environmental Health and Safety
1505 Schallenberger Rd.
San Jose, CA 95131
Business Owner/Operator
The other identified responsible parties are:
Responsible Party: Rossi Aircraft Inc.
Responsible Party Contact:
Address: 1903 Embarcadero Rd.
Board of Supervisors: Mike Wasserman, George Shirakawa, Dave Cortese, Ken,Yeager, Liz Kniss
County Executive: Jeffrey v. Smith III
8-001
Mr. ~lIsbury
March---1-3:;-2012
Page 2 of3
City/StatelZip:
Reason:
Responsible Party:
Responsible Party Contact:
Address:
City/State/Zip:
Reason:
Responsible Party:
Responsible Party Contact:
Address:
City/State/Zip:
.Reason:
Palo Alto, CA 94303
Current Tank Operator
PA Fuel Service Tank Farm
Patricia Roy
1901 Embarcadero Rd.
Palo Alto, CA 94303
Current Tank Operator
City of Palo Alto
Rob Braulik, City Manager's Office
250 Hamilton Ave.; 7th Floor
Palo Alto, CA 94301
Property Owner
County of Santa Clara, Hazardous Materials Compliance Division (HMCD) is naming the County
of Santa Clara, Roads and Airports Department as a responsible party (RP) for soil and
groundwater contamination at the above referenced site based on the concentration of
contaminants detected in the soil and groundwater s~mples collected at the site. The County of
Santa Clara, Roads and Airports Department was named a responsible party under Sections
101480 and 25260 of the California Health and Safety Code because theRP is the
BUSINESS/PROPERTY OWNERITANK OWNER/OPERATOR AT/AFTER the time· the
contamination was discovered OR last known OWNER/OPERATOR of the business which used
the contaminants· at the site.· If the RP wishes to appeal HMCD staff's designation as a
responsible party for this site, they should respond to this letter in writing. Should further
information become available which may require other parties to be named as additional
responsible parties, then please submit that information to HMCD. The RP may request to be
designated a secondary responsible party. This designation may be granted if the primary
responsible party is solvent and not recalcitrant and RP clearly did not initiate or contribute to
the actual discharge.
The RP may sign, or have signed, civil contracts, such as a business or property sales
agreement, which may require other parties to perform any or all environmental investigations .
and potential remediation required by government agencies; however, RP will still be one of the
entities ultimately responsible for complying with all government agency requests under the
Health and Safety Code and the Water Code as a responsible party. Because the source of the
contamination does not appear to be an identifiable underground storage tank, this site will be
opened under the County of Santa Clara's Voluntary Cleanup Program. The RWQCB and the
Department of Toxic Substances Control (DTSC) will be notified and given the opportunity to
take the lead oversight responsibilities. As a responsible party, The County of Santa Clara,
111 .
Mr. EIIsbury
February 20,2012
Page 3 of3
Memorandum of Agreement process. Please contact Mark Piros of the DTSC at (510) 540-
3832 regarding the Site Designation Process or Nathan King of the RWQCB at (510) 622-3966
,regarding the Brownfields Memorandum of Agreement process should the RP desire to have
another agency· be the lead for this site.
If you have any questions, please call Ms. Lani Lee at (408) 918-1977
Michael Bal· t
Program Manager
Hazardous Materials Compliance Division
Site Mitigation Program
cc: Rob Braulik, City Manager's Office, City of Palo Alto, 250 Hamilton Ave., 7th Floor, Palo
Alto, CA 94301 .
Rossi Aircraft Inc., 1903 Embarcadero Rd., Palo Alto, CA 94303
Ms. Patricia Roy, PA Fuel Service Tank Farm, 1901 Embarcadero Rd., Palo Alto, CA
94303 '
'I .
" County of Santa Clara
Department of Environmental Health
1555 Berger Drive, Suite 300
San Jose, California 951 12-2716
(408) 918-3400
www.EHinfo.org
RECEIVED
OIlY OF PALO ALTO
FEB 232012
PUBUCWORKS
ADMINISTRATION
REMEDIAL ACTION AGREEMENT
February 20,2012
Mr. Michael Murdter, Director
County of Santa Clara
Roads and Airports Department
101 Skyport Drive
San Jose, California 95110
APN <008-06-001>
SUBJECT: VOLUNTARY OVERSIGHT OF REMEDIAL ACTION AND
INVESTIGATION, PALO ALTO AIRPORT, 1901, 1903, 1925
EMBARCADERO ROAD, PALO ALTO, CALIFORNIA
Dear Mr. Murdter:
Thank you for submitting the Phase II Environmental Site Assessment prepared by Northgate
Environmental Management, Inc. dated August 1,2011 for the subject site. Based on review of
the subject document, it appears that a discharge of wastel , in the form of "waste and
occurrence", has occurred at the subject site, which requires further characterization and
potential remediation. J
Santa Clara County Department of Environmental Health (DEH) is assuming the role as the
regulatory oversight agency for characterization and potential remediation of the released waste
as allowed by Section 101480 of the California Health and Safety Code. DEH has determined
based on our research that the County of Santa Clara, Roads and Airports Department, City of
Palo Alto, Rossi Aircraft Inc. and P A Fuel Service Tank Farm are the Responsible Parties2 for
this release of waste. By entering into this Remedial Action Agreement (Agreement), you agree
to the following conditions.
• All subsequent directives and written agreements from DEH regarding testing,
monitoring, and analysis to determine the nature, extent, and risk of contamination,
potential remedial action to be taken, and cleanup goals (including deadlines for required
1 Waste as defined in Health and Safety Code Section 101075, and Water Code Section 13050.
2 Responsible Party as defined in Sections 25260 and 101480 of the Health and Safety Code.
Board of Supervisors: Mike Wasserman, George Shirakawa, Dave Cortese, Ken Yeager, Liz Kniss
County Executive: Jeffrey V. Smith 61
8·001
Mr. Murdter
February 20,2012
Page 2
submittals), collectively referred to as Corrective Action, will be considered a part of this
Agreement.
• All Corrective Action activities will follow Corrective Action Requirements under Title
23 of the California Code of Regulations and Regional Water Quality Control Board
Guidance documents available at www.waterboards.ca.gov. Santa Clara Valley Water
District must be contacted for monitoring well installation and destruction. Their Well
Ordinance and Guidance can be found at www.valleywater.org. Regardless of the level
of oversight from DEH, you are responsible for the timely reporting, investigation, and
cleanup of soil and groundwater pollution such that the beneficial uses of waters of the
State are protected, and in compliance with appropriate laws, regulations and policies.
You are also responsibk for compliance with any new laws or regulations that may be
applicable during the·term of this agreement.
• If, at any time, the Responsible Party is not in compliance with directives from DEH that
constitute a portion of this Agreement, DEH can, with adequate notice, withdraw from
this Agreement. If the Agreement is terminated prior to adequate completion of the
Agreement, the case will be referred to the Department of Toxic Substance Control
(DTSC) or Regional Water Quality Control Board (RWQCB) for issuance of a State
Corrective Action Order, Cleanup and Abatement Order,. or other order or enforceable
agreement, as appropriate, for further remedial action directives.
• If, upon further characterization, DEH determines that the-release of waste that is the
subject of this Agreement is sufficiently complex, may present such a significant
potential hazard to human health or the environment, or may not be in the best interest of
the DEH to continue as lead agency, the case may be referred to the DTSC or RWQCB
for further action. .
• Pursuant to Section 25262 or! the Health and Safety Code, a Responsible Party may
request the designation of an administering or lead agency other than DEH when required
to conduct corrective action. Please contact DEH for further information about the State
Site Designation Committee process.
• This case is subject to California regulations for electronic submittal of information for
all soil and groundwater cleanup cases in California (Title 23, Division 3, Chapter 30,
Articles 1 and 2; Title 27, Division 3, Subdivisions 1 and 2). To be considered complete,
all required submittals must be uploaded to the State of California Geotracker database
(http://www.waterboards.ca.gov /water _issues/programs/ust! electronic_submittal!) in
compliance with State Water Resources Control Board (Geotracker) requirements by
specified submittal due dates. Electronic copy submittal to DEH is. required, except for
specified documents and oversized portions of subniittals (larger than 8Yz x 17 inches)
which must be submitted to our office by established due dates, with appropriately
identifying cover.
\'
Mr. Murdter
February 20,2012
Page 3
• After determining that the Responsible. Party has completed the actions required by the
Agreement, DEH will provide the Responsible Party with a letter that certifies that the
cleanup goals embodied in the Agreement have been accomplished and no further action
is required. .
• As allowed by Section 101490 of the Health and Safety Code, DEH will invoice the
Responsible· Party to recover the reasonable and necessary costs for oversight in
implementing this Agreement. DEH staff time will be invoiced quarterly at the rate
specified in the County Fee Ordinance. The current hourly charge rate is $151 per hour
under the County's fee schedule and adopted by the Board of Supervisors. Failure to
pay invoices. may result in assignment of the charges to the County's Department of
Revenue for legal collections, and potential termination of this Remedial Action
Agreement with subsequent referral to the DTSC ()r RWQCB.
We require an initiBl deposit of eight hours at the current hourly rate of $151 per hour for a total
of $1,208 to be submitted along with this Agreement. Submit a check in the amount of $1,208
made payable to "County of Santa Clara DEH vep".
Please sign and date. below and return one copy of this Remedial Action Agreement in the
enclosed envelope within 45 days of the date of this letter. In the event that you decide that you
prefer an agency other than DEH as lead agency, please submit your intention in writing within
45 days of the date of this letter. Should you have any questions, Ms. Lani Lee is the Voluntary
Cleanup Program staff assigned to this case. She can be reached at 008) 918-1977 or by email
at laniJee@deh.sccgov.org.
Sincerely,
Addressee representing RP Date
cc: Rob Braulik, City of Palo Alto, City Manager's Office (rob.braulik@cityofpaloalto.org)
Nathan King, RWQCB (nking@waterboards.ca.gov) .
Mark Piros, DTSC (mpiros@dtsc.ca.gov)
Rossi Aircraft Inc., 1903 Embarcadero Rd., PaIo Alto, CA 943()3
Patricia Roy, P A Fuel Service Tank Farm, 1901 Embarcadero Rd., Palo Alto, CA 94303
AIRPORT EXHIBIT PLAN
PALO ALTO MUNICIPAL AIRPORT
ATTACHMENT J
Contracting and Regulatory Requirements Related to Return of Palo Alto Airport to the City of Palo Alto
Revised 04-23-12
Substantive Provisions Project Timetable
Document Type
Airport Operating Certificate -Projected to be obtained upon
Certificate must be issued by California Department of completion of transfer from County to
Transportation, Aeronautics Division City between July and December 2013
before City can operate a public use
airport
Assignment and Assumption Agreement -Negotiations are projected to
Contract County undertakes to complete out-commence July 2012
standing obligations regarding and continue until the
environmental remediation, and the parties reach agreement
City has assumed FBO leases, FAA on their key rights and obligations
grant agreements, and other
major obligations of County
Assignment of Ground Lease -Negotiations are projected to
Contract City must secure consent of commence June 2012
State Lands Commission (SLC) to and continue until
assume County's lease with the SLC SLC agrees to
transfer to City
Memorandum of Understanding-Projected completion date
Contract Between General Fund and Airport by December 2012
Enterprise Fund to address services
and payment of services to be
provided by General Fund in order to
support future reimbursement requests
for FAA approval
Levee Maintenance Agreement -Projected to be negotiated at the
Contract County's obligations to maintain same time as Assignment
airport levee east of runway must be and Assumption Agreement
transferred to City is negotiated
New or Amended FAA Tower Lease - Projected to be negotiated at the
Contract Agreement with FAA for control same time as the City negotiates
tower located at Airport assignment of FBO leases
from County and SLC
Airport Layout Plan- Projected to be prepared and finalized at
Resolution The FAA requires the City to adopt the same time as FAA considers
this Plan before the transfer can be the terms and conditions of the
effected Assignment and Assumption
Agreement
Ordinance creating City airport commission-Projected to be completed by
Ordinance The Airport Commission must be created by December 2012 or when
adoption of an ordinance the transfer occurs, whichever
occurs later
Future FBO leases -Projected negotiations with future long-
Contract New Fixed Based Operator leases term FBO tenants likely to occur
could be negotiated during or after the City has taken over
after the County and SLC negotiations the Airport
are completed