HomeMy WebLinkAbout17 - Evaluation of John Wayne Airport Fixed Base Operator ProposalsQ SEW Pp�T
CITY OF
z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
July 28, 2020
Agenda Item No. 17
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Grace K. Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
PREPARED BY: Tara Finnigan, Deputy City Manager,
tfinnigan@newportbeachca.gov
PHONE: 949-644-3035
TITLE: Evaluation of John Wayne Airport Fixed Base Operator Proposals
ABSTRACT:
The City Aviation Committee's General Aviation Improvement Program (GAIP) Ad Hoc
reviewed and made findings related to the John Wayne Airport Fixed Based Operator
proposals received by the County of Orange (County). The respondent's plans were
evaluated according to how closely they align with the City's goals for the GAIP. The
Aviation Committee will review those findings on July 27. City staff will inform the Council
at its July 28 meeting of any changes or further recommendations made by the Aviation
Committee.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Review the Aviation Committee's recommendations related to proposals for the
General Aviation Improvement Program and authorize the City Manager to notify the
County of Orange of those proposals that are consistent with the City of Newport
Beach's goals.
FUNDING REQUIREMENTS:
There is no fiscal impact related to this item.
DISCUSSION:
Background
The General Aviation Improvement Program (GAIP) is a County of Orange (County)
project that will modernize the general aviation facilities at John Wayne Airport (JWA).
17-1
Evaluation of John Wayne Airport Fixed Base Operator Proposals
July 28, 2020
Page 2
The City of Newport Beach (City) has closely followed the project from its earliest stages
and has opposed any proposed project components that could eventually increase
overflight noise and air quality impacts for city residents. Accordingly, the City has strongly
advocated for the preservation of the current mix of light general aviation aircraft and
general aviation jets at the airport. This position aligns with Council Policy A-17, which
says the City will "support any plan or project that maintains, and oppose any plan or
project that proposes any significant changes to, the existing level of general aviation
operations, [or] the current level of general aviation support facilities ..." at JWA. (See,
Council Policy A-17, Section E, Subsection 4).
GAIP Approval Process
The Environmental Impact Report (EIR) for the GAIP analyzed the proposed project,
three alternatives, and a no project option. The City supported and asked the Orange
County Board of Supervisors (Board) to adopt the project alternative that it believed would
preserve the presence of smaller general aviation aircraft at JWA and have the least
impact on Newport Beach neighborhoods. County staff, however, recommended that the
Board adopt a different project alternative, one that the City believed would reduce the
storage capacity for the smaller, quieter general aviation aircraft and provide more
storage space for the noisier general aviation jets. The City was concerned that this
alternative could also lead to more itinerant general aviation jet operations. Newport
Beach, local community groups, the So Cal Pilots, and surrounding communities opposed
County staff's recommendation.
The City asked the Board to:
1. Preserve the current balance of small planes and GA jets (the "GA mix") at JWA.
2. Build the maximum number of individual hangars while preserving the current
ratio of 40-, 50- and 60 -foot hangars.
3. Move regularly scheduled commercial operations such as JetSuiteX to the
airport's main terminal.
4. Exclude the General Aviation Facility from the project.
The Board sought a compromise solution that combined elements of the County's
preferred plan and the protections for smaller general aviation that the City and others
requested.
The Board ultimately approved a plan, adopted with the certification of the Environmental
Impact Report in June 2019, that sets aside more than 34 acres, the majority of the space
available for general aviation, for the smaller and quieter planes. The Board also included
land use and lease restrictions on certain airport parcels to preserve these areas for
smaller general aviation aircraft and limit the size of aircraft that can be stored on them
for many years to come.
17-2
Evaluation of John Wayne Airport Fixed Base Operator Proposals
July 28, 2020
Page 3
The approved plan includes two, full-service Fixed Base Operators (FBOs) and one new
and one existing limited -service FBO. (FBOs are the private companies that provide
services to the general aviation community.) The plan does include a General Aviation
Facility - a space used for processing international general aviation passengers — but the
County agreed to impose limits on its hours of operation. To help ensure the preservation
of space for smaller general aviation aircraft, and with the additional restrictions, the City
did not further argue against the inclusion of a limited -hours General Aviation Facility.
Fixed Base Operator Request for Proposals (RFP)
The next critical step in the GAIP's progression involves the selection of the full- and
limited -service FBOs. The cities of Newport Beach and Costa Mesa, aviation -focused
community groups and the So Cal Pilots asked the County to issue a detailed RFP to
provide clear direction to potential proposers on the areas of particular concern to our
community and others. In September 2019, the Board approved an RFP that included the
land use restrictions it had adopted in June 2019, but the RFP lacked the specificity
Newport Beach had requested in terms of the facilities that will ultimately be built under
the GAIP. The County did, however, include a questionnaire in the RFP to elicit responses
on areas of particular interest to the Newport Beach community, such as a respondent's
proposed FBO hours of operation. The County also agreed to release certain aspects of
the proposals received for public review at least 30 days in advance of when the Board
would be asked to select the FBOs.
The City committed to and continued to advocate for Newport Beach's interests as the
various private aviation firms prepared their responses to the County's RFP. This included
meeting with a number of the potential respondents.
The County issued its RFP for the limited- and full -serve FBOs in the fall of 2019 and the
responses were due in December 2019. After an initial review of the proposals, the
County asked some of the respondents to amend their proposals to better align with
aspects of the project EIR. The amendments were due in the spring of 2020. A County -
appointed panel then reviewed and scored the proposals.
On July 9, the County released the evaluation panel's scores, each respondent's
conceptual renderings/layouts, and each respondent's responses to the questionnaire
that was included in the RFP.
Aviation Committee Review
The City Aviation Committee's GAIP Ad Hoc Committee was tasked with reviewing and
evaluating the respondents' documents in terms of how well each respondent's plan
aligns with the goals the City advanced for the GAIP. The Ad Hoc Committee also
conducted question and answer sessions with each of the seven respondents. The Ad
Hoc's findings, as relayed to the Aviation Committee, indicate whether or not key
elements of each respondent's proposal comply with the City's goals. With the exception
of one firm that proposes to operate regularly scheduled commercial service out of its
FBO, the Ad Hoc found that all other proposals met or exceeded those goals.
17-3
Evaluation of John Wayne Airport Fixed Base Operator Proposals
July 28, 2020
Page 4
More information about the Ad Hoc's review process and findings is included in the
attached staff report for the July 27, 2020 Aviation Committee meeting. Due to the close
timing of the Aviation Committee meeting and the July 28 City Council meeting, City staff
will inform the Council at its meeting of any changes or further recommendations made
by the Aviation Committee.
Next Steps
The Orange County Airport Commission is scheduled to consider the limited- and full-
service FBO responses on August 5 and the Board of Supervisors is scheduled to
consider the item on August 11. At the August 11 meeting, JWA staff will ask the Board
to select a respondent for each available site. County staff will return to the Board once
negotiations with the selected respondents are completed for the approval of the final
leases.
City staff is recommending that the City Council authorize the City Manager to notify the
County of Orange of the proposals the Aviation Committee found to be consistent with
the City of Newport Beach's goals.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — July 27, 2020 Aviation Committee Staff Report
17-4
ATTACHMENT A
Q �EwPpRT
CITY OF
�z NEWPORT BEACH
c`,FORN'P Aviation Committee Staff Report
July 27, 2020
TO: CHAIR AND MEMBERS OF THE AVIATION COMMITTEE
FROM: Grace K. Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
PREPARED BY: Tara Finnigan, Deputy City Manager,
tinnigan@newportbeachca.gov
PHONE: 949-644-3035
TITLE: GAIP Ad Hoc Review of Fixed Base Operator Proposals
ABSTRACT:
On July 9, the County of Orange made certain materials related to the responses it
received for its Request for Proposals for Fixed Base Operators at John Wayne Airport
(JWA) available for public review. The Aviation Committee's General Aviation
Improvement Program (GAIP) Ad Hoc Committee has reviewed the materials and
conducted brief question and answer sessions with each respondent. The Ad Hoc
Committee evaluated the respondents' proposed plans according to how closely they
align with the City's goals for the JWA General Aviation Improvement Program (GAIP).
The findings are summarized in the attachment to this report.
RECOMMENDATION:
1. Review and approve the GAIP Ad Hoc Committee's findings.
2. Recommend that the City Council uphold and communicate the findings to the
County of Orange.
DISCUSSION:
Background
The County of Orange (County) intends to modernize the general aviation facilities at
John Wayne Airport (JWA). The GAIP provides the framework for updating these
facilities.
The City of Newport Beach (City) has closely followed the progression of the GAIP for
several years in furtherance of the City's long -held position that it will "support any plan
or project that maintains, and oppose any plan or project that proposes any significant
changes to, the existing level of general aviation operations, [or] the current level of
general aviation support facilities ..." at JWA. (See, Council Policy A-17, Section E,
Subsection 4).
17-5
GAIP Ad Hoc Review of Fixed Base Operator Proposals
July 27, 2020
Page 2
The City and members of the Newport Beach community have, during the County's
GAIP review and approval process, opposed changes that would adversely affect the
mix of general aviation aircraft at the airport by reducing the presence of lighter GA
aircraft and introducing more of the noisier GA jet operations, as such changes could
eventually increase overflight noise and air quality impacts for city residents.
As the GAIP moved through the County's environmental review process, the City
strongly advocated for a plan that, once built, would result in the least amount of
adverse impacts on Newport Beach and surrounding communities. The City sought a
plan that would:
1. Preserve the current balance of small planes and GA jets (the "GA mix")
2. Build the maximum number of individual hangars while preserving the current
ratio of 40-, 50- and 60 -foot hangars.
3. Move regularly scheduled commercial operations such as JetSuiteX to the
airport's main terminal.
4. Not include a General Aviation Facility.
Thus, the City and local community groups expressed serious concerns when JWA staff
recommended a project alternative that we believed would have the most noise and air
quality impacts on our community and the other communities surrounding the airport.
The Board of Supervisors ultimately found a compromise solution and adopted a plan
for the GAIP that preserves space at the airport for general aviation propeller aircraft.
The approved plan sets aside more than 34 acres, the majority of the space available
for general aviation, for the smaller and quieter planes. Further, it includes land use and
lease restrictions on certain airport parcels to preserve these areas for smaller general
aviation aircraft and limits the size of aircraft that can be stored on them for many years
to come. The County's plan, adopted with the certification of the Environmental Impact
Report in June 2019, includes two, full-service Fixed Base Operators (FBOs) and one
new and one existing limited -service FBO. (FBOs are the private companies that
provide services to the general aviation community.) Over Newport Beach's previously
stated objections, the County's plan includes a General Aviation Facility (GAF); a space
used for processing international general aviation passengers. The County did agree,
however, to impose limits on the GAF's hours of operation.
A key component of the program involves determining what FBOs will be selected to
enter into long-term leases with the County and eventually build out and operate the full -
and limited -service facilities that serve the airport's general aviation users. The County
issued the Request for Proposals for Fixed Base Operators at John Wayne Airport
(JWA) in the fall of 2019 and the responses were due in December 2019. After an initial
review of the proposals, the County asked some of the respondents to amend their
proposals to better align with aspects of the project EIR. The amendments were due in
the spring of 2020. A County -appointed panel then reviewed and scored the proposals.
17-6
GAIP Ad Hoc Review of Fixed Base Operator Proposals
July 27, 2020
Page 3
In keeping with the Board's commitment to release certain portions of the proposals for
public review in advance of the Board's selection of the FBOS, the County released the
evaluation panel's scores, each respondent's conceptual renderings/layouts, and each
respondent's responses to the questionnaire that was included in the RFP. The
questionnaire contained questions on subjects of particular interest to the Newport
Beach community, such as the respondents' proposed hours of operation for the FBO.
(The documents can be found at ocair.com/generalaviation/gaimprovement.)
The County has outlined the following process for its review and selection of the FBOs.
The OC Airport Commission is scheduled to consider the item on August 5 and the
Board of Supervisors is scheduled to consider the item on August 11. At the August 11
meeting, JWA staff will ask the Board to select a respondent for each available site.
County staff will return to the Board after negotiations with the selected respondents are
completed for the approval of the final leases.
GAIP Ad Hoc Committee Review
The GAIP Ad Hoc committee is comprised of Aviation Committee members Jeff Cole,
Steve Livingston and Sharon Ray. Council Member Diane Dixon, who also serves as
Vice Chair of the Aviation Committee, assisted with the Ad Hoc's review.
The Ad Hoc committee members individually reviewed the documents provided by the
County and then collectively conducted brief question and answer sessions with each
respondent. It should be noted that all respondents accepted the Ad Hoc's invitation
without reservation and several commented, during their discussions with the Ad Hoc,
their desire to be responsive to Newport Beach's stated interests as they developed
their proposals.
After the information- gathering process was completed, the Ad Hoc discussed and
analyzed its findings in terms of how well each respondent's plan aligns with the goals
the City has advanced for the GAIP. Their findings are summarized in the attached
chart, titled Ad Hoc Committee Evaluation. For the full-service FBO proposals for the
Northeast and Northwest parcels, the Ad Hoc considered and evaluated the following:
1. Does the proposed plan maintain the current balance of small GA aircraft and GA
jets (aka, the "GA mix")?
2. Does the respondent intend to build the maximum number of individual hangars
while preserving the current ratio of 40-, 50- and 60 -foot hangars?
3. Does the proposed plan exclude a general aviation facility?
4. If the proposed plan includes a general aviation facility, did the respondent
propose limited hours of operation?
5. What regular business hours has the respondent proposed for its FBO?
6. Does the respondent's plan exclude regularly scheduled commercial service from
operating out of its FBO?
Further, the committee noted any programs or proposals for noise abatement, such as
"fly quiet" or pilot education programs, raised by the respondents.
17-7
GAIP Ad Hoc Review of Fixed Base Operator Proposals
July 27, 2020
Page 4
While the operations of limited service FBOs generally result in less noise impacts to
the surrounding communities, the committee did review each of the proposals received
and evaluated them based on how they sought to maintain the GA mix at the airport,
provided hanger space for small GA aircraft and their proposed hours of operation.
The attached spreadsheet lists the committee's findings as to whether or not a
respondent's plan aligns with the City's goals.
Next Steps
The Ad Hoc Committee will present its findings to the full Aviation Committee on July
27. On July 28, the City Council will review the information provided to the Aviation
Committee and City staff will relay any additional comments provided by the committee
during the July 27 meeting. Staff will ask the Council to authorize the Mayor to send a
letter to the County summarizing the findings.
NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Attachment:
Ad Hoc Committee Evaluation
17-8
Ad Hoc Committee Evaluation of Fixed Base Operator Proposals
Does the Proposal Comply With the City's Goals for the General Aviation Improvement Program?
Full Service Northeast
Full Service Northwest
General Aviation
General Aviation
Maintain Current GA Build Max #
General Aviation
Maintain Current GA Build Max # of
FBO Hours
Regularly Scheduled
Noise Abatement
Regularly Scheduled
Noise Abatement
Facility Hours
Facility Hours
Balance Individual Hangars
Facility Excluded
Limited
Commercial Ops Excluded
Programs
Limited
Limited
Programs
ACI Jet Y Y
N
Y
Y+
Y
Y
Clay Lacy Aviation Y Y
Y
NA
Y
Y
Y+
OC Aviation Partners / Million Air Y IY
IN
IY
IY
IN
junknown
Full Service Northwest
Limited Service
Maintain Current GA Build Max # of
Balance Individual Hangars Hours of Operation
American Aircraft Y Y Y
Jay's Y Y Y
Key
Y - Yes Y+ - Yes, with added benefits
N - No INA - Not Applicable
Aligns with City's Goals
17-9
General Aviation
Maintain Current GA Build Max # of
General Aviation
FBO Hours
Regularly Scheduled
Noise Abatement
Facility Hours
Balance Individual Hangars
Facility Excluded
Limited
Commercial Ops Excluded
Programs
Limited
Atlantic Aviation
Y Y
N
Y
Y
Y
Y+
Clay Lacy Aviation
Y Y
Y
NA
Y
Y
Y+
Jet Aviation
Y
I NY
Y
Y
Unknown
OC Aviation Partners /Million Air
Y IY
N
Y
Y
N
Unknown
Limited Service
Maintain Current GA Build Max # of
Balance Individual Hangars Hours of Operation
American Aircraft Y Y Y
Jay's Y Y Y
Key
Y - Yes Y+ - Yes, with added benefits
N - No INA - Not Applicable
Aligns with City's Goals
17-9