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Rio Vista Municipal Airport
Potential Alternatives for the
Future Ownership, Operation and
Maintenance of the Airport
Prepared for
City of Rio Vista
Prepared by
Aries Consultants Ltd.
March 2015
Rio Vista Municipal Airport
Potential Alternatives for the
Future Ownership, Operation and
Maintenance of the Airport
Prepared for
City of Rio Vista
Prepared by
Aries Consultants Ltd.
March 2015
TABLE OF CONTENTS
Section
1
Page
INTRODUCTION AND SUMMARY
1.0
1.1
1.2
1.3
1.4
2
CONSIDERATIONS FOR ALTERNATIVES ANALYSIS
2.1
2.2
2.3
2.4
2.5
2.6
2.7
3
Introduction ..................................................................................................... 1-1
Alternatives Considered .................................................................................. 1-1
Alternatives Analysis ...................................................................................... 1-3
Summary ......................................................................................................... 1-6
Recommendations ............................................................................................. 1-10
Introduction ..................................................................................................... 2-1
History of the Airport...................................................................................... 2-1
Airport Activity and Operations ..................................................................... 2-1
2.3.1 Based Aircraft ..................................................................................... 2-2
2.3.2 Aircraft Operations ............................................................................. 2-2
Federal Aviation Administration (FAA) ........................................................ 2-2
2.4.1 FAA Airport Improvement Program Grants ....................................... 2-2
2.4.2 FAA Grant Assurances ....................................................................... 2-6
California Department of Transportation, Division of Aeronautics (Caltrans) 2-6
2.5.1 Annual Grants ..................................................................................... 2-6
2.5.2 Caltrans FAA Airport Improvement Program Matching Grants ........ 2-7
2.5.3 Acquisition and Development Grants ................................................. 2-8
2.5.4 Airport Loan Program ......................................................................... 2-8
Other Grants ................................................................................................... 2-8
City of Rio Vista ............................................................................................ 2-9
2.7.1 Historical Operating Revenues and Expenses .................................... 2-9
2.7.2 Airport Property .................................................................................. 2-11
2.7.3 Management and Operation ................................................................ 2-13
ALTERNATIVE 1 – STATUS QUO
3.1
3.2
3.3
3.4
3.5
3.6
Introduction .....................................................................................................
Grants and Loans ............................................................................................
Operating Revenues and Expenses .................................................................
Management, Operation and Maintenance .....................................................
Maintain Status Quo .......................................................................................
3.5.1 FAA Airport Improvement Program Grants .......................................
3.5.2 California Department of Transportation, Division of Aeronautics
(Caltrans) Grants .................................................................................
3.5.3 Management, Operation and Maintenance .........................................
Summary .........................................................................................................
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
3-1
3-1
3-1
3-2
3-2
3-2
3-3
3-3
3-5
ii
TABLE OF CONTENTS – continued
Section
4
ALTERNATIVE 2 – PRIVATIZATION
4.1
4.2
4.3
4.4
4.5
4.6
4.7
5
4-1
4-1
4-2
4-3
4-4
4-4
4-5
4-6
4-6
4-7
Introduction .....................................................................................................
FAA Considerations........................................................................................
Caltrans, Division of Aeronautics Considerations ..........................................
Other Considerations ......................................................................................
Other Airports .................................................................................................
Summary .........................................................................................................
5-1
5-1
5-3
5-3
5-3
5-4
ALTERNATIVE 4 – CONTRACT MANAGEMENT
6.1
6.2
6.3
6.4
6.5
7
Introduction .....................................................................................................
The Federal Aviation Administration (FAA) Airport Privatization
Pilot Program (APPP) .....................................................................................
Reasons for Withdrawing Applications ..........................................................
General Aviation Airports...............................................................................
Rio Vista Municipal Airport ...........................................................................
4.5.1 FAA Considerations............................................................................
4.5.2 Caltrans Division of Aeronautics Considerations ...............................
4.5.3 Other Considerations ..........................................................................
Summary of the FAA Airport Privatization Pilot Program to Date................
Summary .........................................................................................................
ALTERNATIVE 3 – OUTRIGHT SALE OF THE AIRPORT
5.1
5.2
5.3
5.4
5.5
5.5
6
Page
Introduction .....................................................................................................
Contract Management Firms...........................................................................
Fixed Base Operator .......................................................................................
Local Pilots Association .................................................................................
Summary .........................................................................................................
6-1
6-1
6-3
6-4
6-5
ALTERNATIVE 5 – COUNTY OF SOLANO
7.1
7.2
7.3
7.4
Introduction .....................................................................................................
Solano County.................................................................................................
Public Agency Contract Agreements ..............................................................
Summary .........................................................................................................
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
7-1
7-1
7-2
7-2
iii
TABLE OF CONTENTS – continued
Section
8
ALTERNATIVE 6 – CLOSE THE AIRPORT
8.1
8.2
8.3
8.4
9
Page
Introduction .....................................................................................................
Airport Closures ..............................................................................................
8.2.1 Rialto Municipal Airport.....................................................................
8.2.2 St. Clair Regional Airport ...................................................................
8.2.3 Blue Ash Airport .................................................................................
8.2.4 Blaine Municipal Airport ....................................................................
8.2.5 Other Airports .....................................................................................
Airport Closure Issues.....................................................................................
Summary .........................................................................................................
8-1
8-1
8-1
8-2
8-2
8-3
8-3
8-3
8-4
ALTERNATIVE 7 – PORT AUTHORITY
9.1
9.2
9.3
9.5
Introduction .....................................................................................................
Port Authority .................................................................................................
Formation of the Port Authority of Rio Vista .................................................
Summary .........................................................................................................
9-1
9-1
9-2
9-3
APPENDIXES
A
B
Federal Aviation Administration Airport Sponsor Grant Assurances
Airport Purchase and Relocation Agreement
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
iv
LIST OF TABLES
Number
Page
1-1
Alternatives Analysis Summary .....................................................................
1-2
2-1
2-2
2-3
FAA Airport Improvement Program Grants ................................................... 2-4
Caltrans FAA Airport Improvement Program Matching Grants .................... 2-7
Historical Operating Revenues and Expenses ................................................ 2-10
LIST OF FIGURES
Number
1
Page
Airport Property Map ..................................................................................... 2-12
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
ii
Section 1
INTRODUCTION, SUMMARY AND RECOMMENDATIONS
1.0
INTRODUCTION
The City of Rio Vista retained Aries Consultants Ltd. to evaluate the alternatives available
to the City for the future ownership, operation and management of the Airport and
prepare a report on the research and analysis. The Airport is owned and operated by
the City of Rio Vista.
The data used in preparing this report were obtained from various Federal, State, City and
other sources. In addition, information was obtained from discussions with persons
directly, or indirectly, associated with the operation of the Airport and other similar
airports.
Table 1-1 presents a summary of the analysis of the alternatives discussed below. It
should be noted that quantifying the analysis into “yes” and “no” answers should not be
considered definitive as there are further considerations as discussed in the text. For
example, the ability of the Airport to retire the debt to other City funds is dependent on
the City’s financial statement audit and the City pursuing the grant history as discussed in
Section 2.7.1, Historical Operating Revenues and Expenses. Increased aviation activity
and its revenues could contribute to the retirement of debt to other City funds under the
Status Quo and County of Solano alternatives. The City could negotiate with a new
airport sponsor/owner to retire the debt under the FAA Airport Privatization Pilot
Program (APPP) and the Outright Sale alternatives. The requirement to reimburse the
Federal Aviation Administration (FAA) for Airport Improvement Program Grants and
State of California, Department of Transportation, Division of Aeronautics (Caltrans)
grants under the Close the Airport Alternative could be negated if the Airport is closed
through an Act of Congress as discussed in Section 8.2 Airport Closures. The debt to
other City funds could also be retired through the sale of the Airport and its facilities.
1.1
ALTERNATIVES CONSIDERED
Seven alternatives were identified and analyzed for the future ownership, operation and
management of the Airport. These included:
 Scenario 1 – Status Quo. The City of Rio Vista retains the ownership,
maintenance and operation of the Airport.
 Scenario 2 – Federal Aviation Administration Airport Privatization Pilot
Program. The privatization of the Rio Vista Municipal Airport under the FAA
Airport Privatization Pilot Program (APPP).
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
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 Scenario 3 – Outright Sale. The outright sale of the Airport to a private entity
without use of the FAA Airport Privatization Pilot Program.
 Scenario 4 – Contract Management. The contract management scenarios
include both total and partial management, maintenance and operation of the
Airport with the City retaining ownership. Partial would include the retention of a
fixed base operator (FBO) to operate the Airport as well as provide aviation
services.
 Scenario 5 – County of Solano. The potential of the County of Solano assuming
either the ownership, management, maintenance and operation of the Airport or
just the management, maintenance and operation of the Airport.
 Scenario 6 – Close the Airport. This scenario assumes the closure of the Airport
and any required reimbursements to City, FAA and State accounts. It is assumed
the Airport land will be used for nonaviation purposes after the closure.
 Scenario 7 – Port Authority. This scenario assumes that the ownership,
maintenance and operation of the Airport will be included under a Port Authority
as presented in the recently-completed RioVISION: Coming Together report.
The report discusses the potential for a future Rio Vista Port Authority for the
underdeveloped downtown waterfront and the Airport.
1.2
ALTERNATIVES ANALYSIS
The potential alternatives were evaluated for their ability to address several
considerations. These considerations included:
Requirement to reimburse, in total or in part, any grants received from the Federal
Aviation Administration (FAA); State of California, Department of Transportation
Division of Aeronautics (Caltrans); Economic Development Administration; and
Community Development Block Grants

The City has accepted FAA Airport Improvement Program grants, beginning with the
planning, land acquisition and building of the new airport totaling $9,903,050.

The City has accepted Caltrans grants for FAA-matching grants totaling $265,000
beginning in 1998 and an Acquisition and Development grant totaling $197,844 in
2000.

The City accepted a $1 million Economic Development Administration Grant in
1998.

The City accepted a $500,000 Community Development Block Grant in 1998.
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
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Ability to Retire Debts Due to Other City Funds

Over the years, funds have been borrowed from the City General Fund, the Water and
Beach Drive Treatment Facility Enterprise Fund and the Municipal Improvement
Capital Project Fund. The outstanding debt to these funds totaled $1,135,969.37 as of
June 30, 2014.
Historical Operating Revenues and Expenses of the Airport Enterprise Fund

The historical operating revenues and expenses of the Rio Vista Municipal Airport
were reviewed based on information provided by the City. Based on the review, the
operating results of the Airport Enterprise Fund are provided later in Table 2-3 for
fiscal years 2007 through 2014. The Fund is operated to account for Airport
operations that are financed and operated in a manner similar to private business
enterprises. The historical operating revenues and expenses provide a basis for
assessing the ability of the Fund to meet the requirements for retiring any debts to
other City funds and to continue funding capital improvement projects for future
Airport development.
It should also be noted that in a meeting in September 2014, FAA
requested that grant revenues and services contracted under grant
funds be accounted for as a subaccount in the Airport fund so as not to
mix the grant revenues and expenses with the Airport revenues and
expenses.
Therefore, it should be noted that some of the data in Table 2-3 were
modified by Aries Consultants Ltd. from the original data provided by
the City. Based on these modifications, the Airport has operated with
an average surplus of over $6,400 on an annual basis over the most
recent eight-year historical period from 2007 through 2014.

An issue with regard to the historical operating revenues and expenses of the Airport
Enterprise Fund and its ability to retire outstanding loans to other City funds has
surfaced based on discussions with representatives of the City. There are those that
concur that the Airport Enterprise Fund operates with an annual surplus of revenues
over expenses and others who see the Airport as a drain on other City resources, e.g.,
the City General Fund. Inherent to these opposing views is that, due to the history of
the management and administration of the Airport (See Section 2.7.3), limited
management and oversight responsibilities for the Airport have been vested with a
variety of other City departments filling in on an as-needed basis. As many grants
and loans are funded up front and reimbursed by request to the granting agency, e.g.,
the FAA and Caltrans, there may have been grants issued whereby up front money
from the City funded a project, and reimbursement was never requested from the
granting agency. In addition, based on the modifications made to the revenues and
expenses for Fiscal Years 2007 through 2014 presented in Table 2-3, applying grant
reimbursements to the Airport Enterprise Fund may not have occurred.
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
1-4

The City should consider writing letters to the FAA and to Caltrans, under The
Freedom of Information Act, requesting total grant reimbursements on each of the
grants prior to the grants being closed by the issuing agency. Based on receipt of this
information, the City would then be required to do an in-house audit of the Airport
Enterprise Fund going back to the original 1983 FAA Airport Improvement Program
grant.
Terms and Conditions of the Original Acquisition of the Airport Property

Some of the land for the new airport was acquired in 1989 for a total of $322,807
using FAA Airport Improvement Program Grant funding. Three other parcels were
obtained by grant deed from the State of California, Department of Water Resources,
Sacramento and San Joaquin Drainage District.

The original Airport Purchase and Relocation Agreement includes covenants as
follows:
Upon receipt of the purchase price Watson Hollow will pay to the City the
sum of One Hundred Thousand Dollars ($100,000) as an advance
payment to be credited towards a forty-nine (49) year lease of the real
property described in Exhibit “C” attached hereto and incorporated
herein.
Subject to compliance with all applicable safety and other requirements,
to allow for airplane access to the new airport across Airport Road.
Subject to compliance with all applicable safety and other requirements,
the City shall allow airplane access to the airport runways from Baldwin’s
real property located adjacent to the Baldwin property being purchased
herein.

The Airport is zoned as airport commercial (C-2-A). However, a 12 acre parcel on
the west side of the Airport is designated as a limited industrial/employment district
[I/E(L)], Airport Industrial Park, on the 2002 City of Rio Vista General Plan. There
is an industrial park with infrastructure already developed on a portion of this parcel.
The Watson Hollow business entity intended to lease a portion of this parcel of
Airport property located on the west side adjacent to Airport Road for 49 years as
noted above. The parcel includes the aircraft parking apron and part of the parallel
taxiway west of Runway 15-33.

Based on the 2007 Rio Vista Airport Master Plan Update, the status of this proposed
lease was being resolved. In any event, a legal opinion of the terms and conditions in
the Airport Purchase and Relocation Agreement will be required. A copy of the 1988
Airport Purchase and Relocation Agreement is included as Appendix B.
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
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
There are access easements onto the Airport from west of Runway 15-33 and north of
Runway 7-25 in the original property agreements for acquisition of the land for the
new airport as noted above. Based on the 2007 Rio Vista Airport Master Plan
Update, the status of these agreements was being resolved.
The Management and Operation of the Airport

1.3
Based on information provided by the City, the management and operation of the
Airport has varied widely since the last full-time Airport Manager left prior to 2001.
Since 2001 limited management and oversight responsibilities for the Airport have
been vested with a variety of other City departments filling in on an as-needed basis.
The City currently does not have sufficient administrative staff within the City
administration to oversee the operations and regulatory requirements for the efficient
operation and management of the Airport. This includes available administrative staff
time and resources to review and address FAA requirements as they relate to staffing
and operating the Airport, leasing policies and procedures, airport land use planning
issues, and other related issues.
SUMMARY
Scenario 1 – Status Quo

There would be no requirement to reimburse the FAA for any grants received under
the Airport Improvement Program.

There would be no requirement to reimburse Caltrans for any FAA Airport
Improvement Program matching grants or the Acquisition and Development grant.

The Airport would continue to be eligible for FAA Airport Improvement Program
grants and Caltrans grants and loans in the future as long as the Airport remains open
as a public-use airport and the City of Rio Vista continues to be the Airport sponsor.

The Airport, based on current management and operation and aviation activity levels,
would not be able to retire the $1.1 million in debt to other City funds.

The benefit to the City of retaining the Status Quo would be the retention of the
control of the Airport and surrounding land uses.
Scenario 2 – Federal Aviation Administration Airport Privatization Pilot
Program

It appears that the FAA Airport Privatization Pilot Program is probably not
appropriate for the Rio Vista Municipal Airport given the interest in and experience
with the APPP to date.
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
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
The general aviation airports that have inquired about the program to date have either
been interested in converting the general aviation airport into an air cargo or air
carrier type airport or accommodating a higher level of general aviation activity (e.g.,
business jets and corporate aviation) and have better facilities (e.g., longer runways,
jet fuel) than those at the Rio Vista Municipal Airport.

A goal of the FAA APPP is to enhance activity and development at general aviation
airports.

Based on experience to date with the APPP, it could cost the City an extensive
amount of time and money to proceed with an application.

There could be a significant reduction in potential FAA Airport Improvement
Program funding for future improvement projects at the Airport.

The Airport would not be eligible for annual grants and FAA Airport Improvement
Program matching grants from Caltrans.
Scenario 3 – Outright Sale

Private individuals, partnerships or corporations who own and operate an airport
intended for public-use may qualify as an FAA Airport Improvement Program
sponsor provided they operate as a general aviation reliever airport or have at least
2,500 annual passenger boardings (enplanements) – criteria that the Rio Vista
Municipal Airport does not meet. Therefore, the Airport would not be eligible for
FAA airport development projects, airport master planning, noise compatibility
planning and noise program implementation.

The Airport would not be eligible for annual grants and FAA Airport Improvement
Program matching grants from Caltrans.

There have been no sales of publicly-owned airports to private operators in recent
years. In fact, overcoming this was one of the goals of the FAA APPP described in
Section 4.

Outside of the FAA APPP, the sale of a publicly-owned airport to a private operator
would face even greater hurdles, e.g., lack of future FAA and Caltrans funding.
Scenario 4 – Contract Management

There would be no requirement to reimburse the FAA for any grants received under
the Airport Improvement Program.
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
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
There would be no requirement to reimburse Caltrans for any FAA Airport
Improvement Program matching grants.

There would be no requirement to reimburse Caltrans for the annual $10,000 grant for
maintenance and operation of the Airport.

The Airport would continue to be eligible for FAA Airport Improvement Program
grants and Caltrans grants and loans in the future as long as the Airport remains open
as a public-use airport.

The benefit to the City of retaining the services of a contract management firm (or
individual) would be to eliminate the need for day-to-day operations and maintenance
of the Airport.

The annual operating and maintenance costs of running the Airport would be reduced.

The disadvantage to the City of retaining the services of a contract management
agreement would be, based on existing activity levels, the inability of the Airport to
retire the $1.1 million debt to other City funds.

The City has attempted to interest a fixed base operator in operating and maintaining
the Airport but so far without success. There were no responses to the 2011 Request
for Proposals for a Non-Exclusive Fixed Base Operator.

The current level and type of aviation activity (e.g., based aircraft, aircraft operations
and jet fuel) at the Airport may not be attractive to a contract management firm.
Airport facilities, e.g., runway length, are also a consideration.
Scenario 5 – County of Solano

If the County was responsible for the maintenance and operation of the Airport, there
could be financial advantages to both the City and the County.

If the County obtained control of the Airport, as well as being responsible for the
maintenance and operation, the County would have the County of Solano System of
Airports. While it may not make much of a difference in how the two airports are
managed in terms of costs, e.g., economies of scale operating two airports with one
administration and staff, a system of airports is eligible for FAA funding for system
planning, airport master plans, use of FAA Airport Improvement Program funds at
either airport, etc.
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
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
The County would continue to be eligible to receive Caltrans grants and loans.

The City would still be responsible for any debts owed to other City funds.

At this time, it is not clear whether there is any interest from either the City and/or the
County in further discussions on this alternative.
Scenario 6 – Close the Airport

The City of Rio Vista accepted FAA Airport Improvement Program grants for
acquisition of about 182 acres of the Airport land in perpetuity for the new airport in
1989. Therefore, if the Airport were closed, about 182 acres of the Airport property
could revert back to the FAA for disposal by the General Services Administration.

The City has continued to accept FAA Airport Improvement Program funds for
airport improvements at the new airport. The most recent Airport Improvement
Program grant was received by the City in 2014 with a continuing FAA obligation to
keep the Airport open through 2034. Based on a review of FAA grants over the past
20 years, the City could have to refund up to $1.6 million in grants received since
1994 (See Table 2-1).

Because some of the Airport land was acquired with FAA funding, this obligation
runs in perpetuity unless FAA releases the City from that obligation, which rarely
happens.

The City could also have to refund up to $463,000 in grants received from Caltrans
since 1998 (See Table 2-2).

Recent closures of publicly-owned airports have required Acts of Congress that
supersede FAA decisions.

In order to close the Airport, the City must show that civil aviation will benefit,
typically by providing a new replacement airport equal to or greater than the existing
Rio Vista Municipal Airport.

Any attempt to close the Airport will be opposed by various pilot and aviation groups
including the California Pilots Association (CPA), Aircraft Owners and Pilots
Association (AOPA), National Business Aviation Association (NBAA), General
Aviation Manufacturers Association (GAMA) and National Air Transportation
Association (NATA). The closure would be opposed on the grounds of its adverse
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
1-9
impact of limiting access to general aviation and losing an important community asset
that is impossible to replace.
Scenario 7 – Port Authority
1.4

The Rio Vista Municipal Airport could benefit through the transfer of the Airport in
its entirety, including land, buildings, improvements, leases and agreements and debt,
to an autonomous Port Authority serving as a public benefit corporation for other
entities.

The Port Authority creation could have the same powers and rights and would assume
the same obligations of the City of Rio Vista with regard to federal and State grants
and loans.

The Port Authority would be eligible for future FAA and Caltrans grants.

Prior approval of the transfer of ownership would be required from the FAA and
Caltrans, Division of Aeronautics. It is not anticipated that this approval would be
denied, however, it would be advisable for the City to have a representative
experienced in aviation-related issues on the Committee investigating the feasibility
of a Port Authority to ascertain that all the rights and powers inherent to an Airport
are included in any proposed legislation.

The City of Rio Vista would no longer have governing authority or control of the
future development and enhancement of the Airport facilities and services.

The concept of the formation of a Port Authority of Rio Vista has been proposed in
recent years. Based on discussions with representatives of the City, interest has been
shown by several persons and entities, including proponents for the Rio Vista
Business Park and Rio Vista Army Base, expressing an interest in the formation of a
Port Authority. The Port Authority alternative outlines a Port Authority under
enabling legislation and how the Airport could be included. It does not include other
facilities and services that would be eligible to be included in a public trust
corporation such as a Port Authority. The City would need to take the initiative to
begin the investigation into the formation of a Port Authority to ascertain the interest
and potential participation by others.
RECOMMENDATIONS
Based on the analyses, the following alternatives appear to have no potential for
implementation or could be very costly and time consuming for the City to pursue;
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
1-10
Scenario 2 – Federal Aviation Administration Airport Privatization Pilot Program
Scenario 3 – Outright Sale
Scenario 4 – Contract Management
Scenario 6 – Close the Airport
Therefore, it is recommended that the City pursue the following alternatives in more
detail:
Scenario 1 – Status Quo. Once the City’s financial statement audit is completed, it is
assumed that the Airport can operate with a minor surplus of revenues over expenses on
an annual basis. The City continues to pursue additional aviation activity and over time
increases in the number of based aircraft and aircraft operations will increase the
revenue sources for the Airport. In addition, the assignment of the Airport and Airportrelated activities to a specific person with sufficient time to fulfill those activities would
greatly enhance the functionality of this City asset.
Scenario 5 – County of Solano. At this time, it is not clear whether there is any interest
from either the City and/or the County in further discussions on this alternative.
Previously, the City had approached the County with discussions on entering into an
operating agreement to include the Nut Tree Airport and the Rio Vista Municipal Airport,
however, based on information provided by the City, the County was not interested at
that time.
There could be financial advantages to both the City and the County as there would be
economies of scale operating two airports with one administration and staff responsible
for the Airports and their operations.
Scenario 7 – Port Authority. The Airport, including all of its assets and liabilities,
could be transferred to a Rio Vista Port Authority. The on-going RioVISION project
recommended initiation of the creation of a Rio Vista Port Authority as one of the
Medium Term Recommendations. As enabling legislation would be required to establish
a Port Authority, it is assumed that the formation of the Authority would be several years
in the future. The City needs to initiate the preliminary meetings with all those interested
in investigating the formation of a Port Authority.
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
1-11
Section 2
CONSIDERATIONS FOR ALTERNATIVES ANALYSIS
2.1
INTRODUCTION
An evaluation of the major elements that will be considered in the alternatives analysis is
presented in this section. These elements include the history of the Airport and the
existing Airport activity and operations. Grants received from the Federal Aviation
Administration (FAA), California Department of Transportation, Division of Aeronautics
(Caltrans) and other grants and loans received for Airport development are discussed.
The debt service retirement of funds due to other City Funds and the historical operating
revenues and expenses of the Airport Enterprise Fund are included. The management
and operation of the Airport are also discussed.
Major considerations for the future of the Airport will include whether or not any FAA
Airport Improvement Program grants, Caltrans grants or other grants and loans received
by the City for acquisition, development and maintenance of the Airport will require
reimbursement as a result of any changes in the ownership, management and operation of
the Airport. The eligibility of the City to receive future grants and the capability of the
Airport to retire any outstanding loans from the City and other funds will be addressed.
The original documents for acquisition of the Airport property are also discussed.
2.2
HISTORY OF THE AIRPORT
In 1984 the City adopted the Rio Vista Airport Site Selection and Master Plan Study and
certified the Environmental Impact Report and Environmental Assessment to relocate the
Airport to its new site at the corner of Airport Road and Baumann Road. The studies
were funded in part through an FAA Airport Improvement Program grant with the overall
objective of preparing a comprehensive review and evaluation of the existing and future
requirements for an airport to serve the Rio Vista area. The Rio Vista Financing
Authority loaned money to the Airport Enterprise Fund to close the airport at its old
location and provide the local matching funds for the FAA grants to acquire the land and
develop the new airport. The Airport officially opened on May 2, 1994. Initial airport
development included Runways 7-25 and 14-32, taxiways, aircraft parking apron and Thangars.
2.3
AIRPORT ACTIVITY AND OPERATIONS
The Rio Vista Municipal Airport is owned and operated by the City of Rio Vista. The
Airport is geographically located 3 statute miles north of the center of the business
district of the City on about 273 acres of land. The Airport is classified as a General
Aviation Airport Local Airport in the most recent National Plan of Integrated Airport
Systems 2015-2019 (NPIAS) prepared by the FAA. The FAA defines a Local Airport as
an airport supplementing local communities by providing access to local and regional
markets. These airports have moderate levels of activity with some multiengine propeller
Rio Vista Municipal Airport
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aircraft. Nationally, these airports average about 33-based propeller-drive aircraft and no
jets.
The Airport is classified as a Regional Airport in the California Aviation System Plan
(CASP) prepared by the State of California, Department of Transportation, Division of
Aeronautics (Caltrans). Caltrans defines Regional Airports as those airports that serve as
community airports but may provide international access; are located in an area with a
larger population base than community airports, while serving a number of cities or
counties; serve the same activities as community airports with a higher concentration of
business and corporate flying; accommodate most business, multi-engine and jet aircraft;
provide most services for pilots and aircraft including aviation fuel; has a published
instrument approach and may have a tower.
2.3.1
Based Aircraft
Based on the most recent FAA Airport Master Record, Form 5010-1, the Airport is home
to approximately 46 based aircraft. Based aircraft are those aircraft that are hangared or
are on tiedowns at the Airport and include those aircraft based on leaseholder sites.
There is space for 46 aircraft in City-owned T-hangars on the south side of the Airport.
There are an additional two hangars on the east side of the terminal area. Other privatelyowned hangars are located to the south end of the terminal area. The Airport has about
75 tiedowns with chains and anchors.
2.3.2
Aircraft Operations
Based on the most recent FAA Airport Master Record, Form 5010-1, there are an
estimated 35,000 annual aircraft operations with 50 percent local operations and 50
percent itinerant operations. Local operations are performed by aircraft operating in the
local traffic pattern and aircraft departing for, or arriving from, local practice areas.
Itinerant operations are conducted by aircraft that take off at one airport and land at
another aircraft. Itinerant operations include the operations of aircraft based at the
Airport and flights of other aircraft to and from the Airport.
2.4
FEDERAL AVIATION ADMINISTRATION (FAA)
2.4.1
FAA Airport Improvement Program Grants
The FAA Airport Improvement Program assists the development of a nationwide system
of airports by providing funding for airport planning and development projects at airports
included in the National Plan of Integrated Airport Systems (NPIAS). The Airport and
Airway Trust Fund, funded through taxes or user fees collected from the various
segments of the aviation community, provides the revenues used to fund Airport
Improvement Program projects.
The Rio Vista Municipal Airport is classified as a General Aviation Airport in the NPIAS
(2013-2017). The Airport is eligible for Airport Improvement Program grants under the
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“general aviation airport” category and is eligible for entitlement grants totaling $150,000
annually which can be used for all FAA-eligible projects. In addition, the Airport can
compete for FAA Airport Improvement Program discretionary funds which are available
for any eligible airport granted at the FAA’s discretion. Projects at the Airport may get
funded with general aviation entitlement grants or a combination of entitlements,
discretionary and State apportionment funding. The general aviation entitlement funds
are available to use in the fiscal year they become available and for the next three fiscal
years. The FAA Airport Improvement Program grant is for 90 percent of the total
eligible project costs.
In 1984 the City adopted the Rio Vista Airport Site Selection and Master Plan Study and
certified the Environmental Impact Report and Environmental Assessment to relocate the
Rio Vista Municipal Airport to a new site. The studies were funded in part through an
Airport Improvement Program grant from the FAA with the overall objective of
preparing a comprehensive review and evaluation of the existing and future requirements
for an airport to serve the Rio Vista area and be a general aviation reliever airport for the
air carrier airports in the northeast San Francisco Bay Area and the Sacramento Area.
The new Rio Vista Municipal Airport site was selected at the corner of Airport Road and
Baumann Road and, beginning in 1985, the City received several FAA Airport
Improvement Program grants to develop the new airport. The Rio Vista Public Financing
Authority loaned money to the Airport Fund to close the airport at its old location and
provide the local matching funds for the FAA grants to develop the new Airport. The
Airport officially opened on May 2, 1994. Initial airport development included Runways
7-25 and 14-32, taxiways, aircraft parking apron and T-hangars.
Several development projects occurred in the late 1990s after the Airport opened
including construction of a new exit taxiway for Runway 7-25 and a water pollution
abatement facility. The projects also included a new airport terminal/administration
building and storm drainage, water, sewer, electrical and telephone utilities to the Airport
Industrial Park on the west side. These projects were funded through grants from the U.S.
Department of Commerce, Economic Development Administration (EDA); State of
California Department of Housing and Community Development; California Aid to
Airports Program; and the Federal Aviation Administration. The City of Rio Vista also
contributed to funding the projects.
The Airport has received FAA grant awards beginning in 1983 with the most recent grant
award of $697,956 received in 2014. Historically, FAA Airport Improvement Program
grants that have been awarded for projects at the Airport are presented in Table 2-1.
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Table 2-1
FAA Airport Improvement Program Grants
Year—
Grant No.
1983-01
1985-02
1990-03
1991-04
1991-05
0000-06
2000-07
2000-08
2000-09
2002-10
Projects
Airport Master Plan
Acquire land for airport development and clear zones
(approximately 273 acres). Land, airport development, Parcel B2
(158.39 acres); land development and clear zone; Parcel A2 (24.81
acres) and Parcel C2 (74.94 acres) and Parcel C3 (2.37 acres) and
clear zone, Parcel B1 (8.03 acres), and Parcel B4 (0.71 acres and
Parcel C1 (4.61 acres); prepare engineering design for new airport
and construction plans and specifications.
Phase I-Site preparation, stripping and mass grading; construct
Runway 7-25 (4,200 feet by 75 feet) and Runway 14-32 (2,200 feet
by 60 feet), including marking, drainage and electrical preparation;
parallel taxiways for Runway 7-25 and 14-32; four connector
taxiways; four holding aprons; 22 runway/taxiway fillets, including
marking, drainage and electrical preparation; construct airfield
storm drainage system; miscellaneous electrical work; install
perimeter fencing; construct portion of airfield tiedown apron,
including marking, drainage and lighting.
Phase II-Construct tiedown apron, including marking, lighting and
tiedowns; install airport lighting system; medium intensity runway
lights (MIRL) on Runways 7-25 and 14-32; medium intensity
taxiway lights (MITL) for entire airfield taxiways; runway/taxiway
guidance sign system; precision approach path indicators (PAPI)
for both runways; runway end identifier lights (REIL) for both
runways, segmented circle with lighted windcone; one
supplemental windcone; electrical equipment vault building;
miscellaneous electrical equipment; airport beacon.
Phase III-Construct tiedown apron, including marking, lighting and
drainage; access road, including curb and gutter, marking and
lighting; heliport, including marking, lighting and drainage; install
fencing, including three gates.
FAA has no record of this grant being issued.
Construct exit taxiway and water pollution abatement facility
(project included sanitary sewer, water, business park {storm
drainage, water, sewer, electrical, telephone, utilities}, terminal
building, small hangar).
NOTE:
FAA share $100,000
EDA share $1,000,000
CDBG share $500,000
Caltrans share $200,000
City share $22,222
TOTAL PROJECT: $1,822,222
Airport Master Plan (no money allocated)
Rehabilitate runways and taxiways (slurry seal and restriping
project); rehabilitate aprons.
Update Airport Master Plan Study
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Grant
Amount
$91,328
$1,050,368
$3,200,400
$1,000,000
$2,946,747
-$100,000
-$248,438
$150,000
2-4
Table 2-1 – continued
FAA Airport Improvement Program Grants
2005-11
2010-12
2011-13
2011-14
2014-15
Construct service road, improve airport drainage, install apron
lighting, install perimeter fencing, install weather reporting
equipment.
Conduct miscellaneous study (pavement plan, electrical study,
drainage plan), install perimeter fencing
Rehabilitate Runways 7-25 and 14-32 (design); rehabilitate
taxiways (design); rehabilitate apron (design); rehabilitate airfield
electrical (design).
Airport Layout Plan Update
Runway 15-33 (approximately 2,200’ x 60’ including markings and
signage); Runway 7-25 (approximately 4,200’ x 75’, crack
repair/slurry seal); and associated taxiways and aprons.
$77,832
$139,981
$100,000
$100,000
$697,956
NOTE: Runway 14-32 is now Runway 15-33 due to changes in the magnetic declination.
SOURCE: Federal Aviation Administration and City of Rio Vista
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The recent $697,956 grant for pavement enhancements include four years (Fiscal Years
2011, 2012, 2013 and 2014) of FAA general aviation airport entitlement grants totaling
$150,000 annually ($600,000) and an additional $97,956 in FAA State Apportionment
funding.
The City has accepted 13 FAA Airport Improvement Program grants beginning with the
planning, land acquisition and building of the new airport totaling $9,903,050.
2.4.2
FAA Grant Assurances
The airport sponsor (City of Rio Vista) incurs obligations which continue after a
development project has been completed as a condition of receiving an FAA Airport
Improvement Program grant. There are 39 Grant Assurances (obligations) that must be
complied with by the airport sponsor including the requirement to keep the airport
available for public use on fair and reasonable terms; not granting any exclusive rights to
any entity providing aeronautical services to the public; the operation and maintenance
of the airport; taking appropriate action to achieve compatible land uses in the vicinity of
the airport; providing financial and operations reports as requested by the FAA; and assuring
nondiscrimination in participation in any activity conducted with, or benefitting from,
FAA grant funds.
The City has agreed to comply with these obligations through the acceptance of FAA
Airport Improvement Program grants. A copy of the Airport Sponsors Grant Assurances
is presented in Appendix A.
2.5
CALIFORNIA DEPARTMENT
AERONAUTICS (CALTRANS)
OF
TRANSPORTATION,
DIVISION
OF
The State of California provides four financial assistance programs. (1) the State of
California, Department of Transportation, Division of Aeronautics annual grant of
$10,000; (2) allows the California Transportation Commission (CTC) to allocate funds to
match FAA Airport Improvement Program grants for airport and aviation purposes; (3)
the acquisition and development grants administered by the State Transportation
Improvement Program (STIP); and (4) the Airport Loan Program.
2.5.1
Annual Grants
The State provides annual non-matching $10,000 grants to airports that have not been
designated as a “reliever” or “commercial service” airport by the FAA that may be used
for both capital improvements and maintenance and operations. The annual grant may be
accumulated for up to five years, or a maximum of $50,000, and used as matching funds
for an FAA Airport Improvement Program grant.
The City is eligible to receive the annual $10,000 Caltrans grant for use in operating and
maintaining the Airport.
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2.5.2
Caltrans FAA Airport Improvement Program Matching Grants
State funds can be allocated by the California Transportation Commission (CTC) to
match an FAA Airport Improvement Program grant once an airport sponsor has accepted
the grant from the FAA. The State match is available to airports that have been
designated as a general aviation or reliever airport by the FAA. Only those projects that
are included in the State’s Capital Improvement Program are eligible to receive matching
grants. The State match will be an amount equal to 5 percent of the FAA Airport
Improvement Program grant.
Caltrans began providing a match for FAA Airport Improvement Program funding in
1993. The match has varied from 2.5 percent to 5 percent over the years. Effective May
24, 2012, the State Airport Improvement Program match has been set at 5 percent of the
Federal grant. The City of Rio Vista has received Caltrans matching for the following
FAA Airport Improvement Program grants presented in Table 2-2.
Table 2-2
Caltrans FAA Airport Improvement Program Matching Grants
Year
AIP Grant
1998-99
2000-07
3-06-0199-07
2002-03
2002-10
3-06-0199-10
2005-11
3-06-0199-11
2005-06
2010-11
2010-12
3-06-0199-12
2011-12
2011-13
3-06-0199-13
2011-12
2011-14
3-06-0199-14
2014-15
3-06-0199-15
2014-15
Project Description
State Match
Construct exit taxiway, including lighting,
marking and drainage; install perimeter fencingdesign.
Update Airport Master Plan Study
$5,000
Install AWOS, remove obstruction, construct
service road-design; improve airport drainagedesign, install apron lighting-design; install
perimeter fencing-design.
Airport Pavement Maintenance Management Plan,
Airport Drainage Study, Airport Electrical Study
and replace existing perimeter fencing (including
gates) Final Phase.
Rehabilitate Runways 7-25 and 14-32-Design;
Rehabilitate
Taxiways-Design;
Rehabilitate
Apron-Design; Rehabilitate Airfield ElectricalDesign.
Airport Layout Plan Update
$9,075
Runway 15-33, including markings and signage;
Runway 7-25, crack repair/slurry seal; and
associated taxiways and aprons.
$34,898
PENDING
$7,500
$3,499.53
$2,500
$2,500
SOURCE: Caltrans, Division of Aeronautics
To date, the City has received the 2.5 or 5 percent of matching grants for FAA Airport
Improvement Program grants totaling $30,075 with an additional $34,898 pending
application to, and acceptance by, Caltrans in 2014. In addition, in 1998 Caltrans
provided $200,000 to the City of Rio Vista as a match for the FAA Airport Improvement
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Program grant participation in the $1.8 terminal area development project. To date, the
City has received $265,000 in Caltrans matching grants.
It should be noted that the City cannot apply for the 5 percent Caltrans matching funds
until the FAA Airport Improvement Program grant has been received by the City.
Caltrans processing time can range from two to three weeks, pending funding availability
and the number of grant applications being processed, and the funds must be allocated by
Caltrans prior to work starting on the project.
Based on discussions with Caltrans Division of Aeronautics representatives, State grants
and loans are governed by the Public Utilities Code, and an airport must be owned by a
public agency to be eligible to receive Caltrans grants.
2.5.3
Acquisition and Development Grants
Any publicly-owned, public-use airport may apply for a State acquisition and
development grant through a structured approval process. Grant projects are evaluated
and prioritized by an evaluation matrix and an airport rating form with runway
maintenance projects receiving the highest priority for funding. An Airport’s request
may range from a minimum of $10,000 to a maximum of $500,000 per fiscal year.
The City received a Caltrans Acquisition and Development grant (A&D Grant) in June
2000 for construction of the “Runway Turnaround Project” in accordance with plans and
specifications approved by the State. Final payments from the State grant totaled
$197,844. No FAA funding was received for this project.
2.5.4
Airport Loan Program
The State Airport Loan Program provides financial assistance in the form of loans,
repayable over a period not-to-exceed 17 years. The interest rate is based on the most
recent issue of State of California bonds sold prior to the issuance of a loan agreement.
Loans can be obtained for matching funds (i.e., a FAA Airport Improvement Program
grant) and for revenue-generating facilities (i.e., hangars and fuel facilities).
The City has never received a loan from the State Airport Loan Program.
2.6
OTHER GRANTS
The requirement for repayment of any portion of the $1 million Economic Development
Administration (EDA) and the $500,000 Community Development Block Grants
(CDBG) to the City in 1998 for the terminal building requires review of the original grant
documents and the “Special Conditions” attached to the grants. For example, the City
established the “useful life” of the terminal building (not how long the building would
stand but how long the building would be used for its original purpose).
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2.7
CITY OF RIO VISTA
Over the years, funds have been borrowed from the City General Fund, the Water and
Beach Drive Treatment Facility Enterprise Fund and the Municipal Improvement Capital
Project Fund to fund deficits in the Airport Enterprise Fund as follows:
1.
2.
3.
4.
5.
Due to General Fund
Advances from General Fund
Advances from Municipal Improvements
Advances from Water
Advances from Beach Drive Treatment Facility
Total
$ 103,399.00
801,656.00
153,507.00
25,883.77
51,523.60
$1,135,969.37
Based on information provided by the City, the outstanding debt as a result of advances
from these other funds totaled $1,135,969.37 as of June 30, 2014.
2.7.1
Historical Operating Revenues and Expenses
The historical operating revenues and expenses of the Rio Vista Municipal Airport were
reviewed based on information provided by the City. Based on the review, the operating
results of the Airport Proprietary Fund are provided in Table 2-3 for fiscal years 2007
through 2014. The Fund is operated to account for Airport operations that are financed
and operated in a manner similar to private business enterprises. The historical operating
revenues and expenses provide a basis for assessing the ability of the Fund to meet the
requirements for retiring any debts to other City funds and to continue funding capital
improvement projects for future Airport development.
It should also be noted that in a meeting in September 2014, FAA
requested that grant revenues and services contracted under grant
funds be accounted for as a subaccount in the Airport fund so as
not to mix the grant revenues and expenses with the Airport
revenues and expenses.
Therefore, it should be noted that some of the data in Table 2-3
were modified by Aries Consultants Ltd. from the original data
provided by the City. Based on additional information provided by
the City, under operating revenues, grants were reduced to the
Caltrans Annual Grant of $10,000. Under operating expenses,
expenses for grant-funded professional services were eliminated
from both professional services and miscellaneous expenses.
These included services provided by contractors working on FAA
grant-funded projects and professional services provided by enXco
Development Corporation funds.
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Based on a review by the City of the modified data presented in
Table 2-3, the City responded that City staff are currently
preparing for the upcoming financial statement audit and are
unable to complete a review of the modified data at this time. In
addition, the City cannot confirm the validity of the Fiscal Years
2012-2013 and 2013-2014 data until the audit is complete.
Based on the modifications of the data in Table 2-3, the Airport has operated with an
average surplus of over $6,400 on an annual basis over the most recent eight-year
historical period from 2007 through 2014.
An issue with regard to the historical operating revenues and expenses of the Airport
Enterprise Fund and its ability to retire outstanding loans to other City funds has surfaced
based on discussions with representatives of the City. There are those that concur that the
Airport Enterprise Fund operates with an annual surplus of revenues over expenses and
others who see the Airport as a drain on other City resources, e.g., the City General Fund.
Inherent to these opposing views is that, due to the history of the management and
administration of the Airport (See Section 2.7.3), limited management and oversight
responsibilities for the Airport have been vested with a variety of other City departments
filling in on an as-needed basis. As many grants and loans are funded up front and
reimbursed by request to the granting agency, e.g., the FAA and Caltrans, there may have
been grants issued whereby up front money from the City funded a project, and
reimbursement was never requested from the granting agency. In addition, based on the
modifications made to the revenues and expenses for Fiscal Years 2007 through 2014
presented earlier in Table 2-3, applying grant reimbursements to the Airport Enterprise
Fund may not have occurred.
The City should consider writing letters to the FAA and to Caltrans, under The Freedom
of Information Act, requesting total grant reimbursements on each of the grants prior to
the grants being closed by the issuing agency. Based on receipt of this information, the
City would then be required to do an in-house audit of the Airport Enterprise Fund going
back to the original 1983 FAA Airport Improvement Program grant.
2.7.2
Airport Property
The land for the new airport was acquired in 1989 from three sources as shown on the
Airport Property Map, Exhibit A. Three parcels (B1, B2 and B4) were purchased from
Watson Hollow (Thomas McCormack, et al) and one parcel (A2) was purchased from
Ann C. and Page Baldwin for a total of $322,807 using FAA Airport Improvement
Program Grant funding. Three other parcels (C1, C2 and C3) were obtained by grant
deed from the State of California, Department of Water Resources, Sacramento and San
Joaquin Drainage District.
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The original Airport Purchase and Relocation Agreement includes covenants as follows:
Upon receipt of the purchase price Watson Hollow will pay to the
City the sum of One Hundred Thousand Dollars ($100,000) as an
advance payment to be credited towards a forty-nine (49) year
lease of the real property described in Exhibit “C” attached hereto
and incorporated herein.
Subject to compliance with all applicable safety and other
requirements, to allow for airplane access to the new airport
across Airport Road.
Subject to compliance with all applicable safety and other
requirements, the City shall allow airplane access to the airport
runways from Baldwin’s real property located adjacent to the
Baldwin property being purchased herein.
The Airport is zoned as airport commercial (C-2-A). However, a 12 acre parcel on the
west side of the Airport is designated as a limited industrial/employment district [I/E(L)],
Airport Industrial Park, on the 2002 City of Rio Vista General Plan. There is an
industrial park with infrastructure already developed on a portion of this parcel. The
Watson Hollow business entity intended to lease a portion of this parcel of Airport
property located on the west side adjacent to Airport Road for 49 years as noted above.
The parcel includes the aircraft parking apron and part of the parallel taxiway west of
Runway 15-33..
Based on the 2007 Rio Vista Airport Master Plan Update, the status of this proposed
lease was being resolved. In any event, a legal opinion of the terms and conditions in the
Airport Purchase and Relocation Agreement will be required. A copy of the 1988
Airport Purchase and Relocation Agreement is included as Appendix B.
There are access easements onto the Airport from west of Runway 15-33 and north of
Runway 7-25 in the original property agreements for acquisition of the land for the new
airport as noted above. Based on the 2007 Rio Vista Airport Master Plan Update, the
status of these agreements were being resolved.
2.7.3
Management and Operation
The administration of an airport includes a number of responsibilities that are basically
the same for most general aviation airports. Some airports require an airport manager
and/or operations manager and other facilities are administered and operated as a function
of another entity of the airport sponsor, e.g., public works. The organizational
responsibility(s) depends on the aviation activity, e.g., based aircraft, annual aircraft
operations, tenants and users, and other considerations.
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Based on information provided by the City, the management and operation of the Airport
has varied widely since the last full-time Airport Manager left prior to 2001. Since 2001
limited management and oversight responsibilities for the Airport have been vested with
a variety of other City departments filling in on an as-needed basis. These have ranged
from contract personnel responsible for other activities within the City, acting City Public
Works Directors and outside engineering firms.
The City currently does not have sufficient administrative staff within the City
administration to oversee the operations and regulatory requirements for the efficient
operation and management of the Airport. This includes available administrative staff time
and resources to review and address FAA requirements as they relate to staffing and
operating the Airport, leasing policies and procedures, airport land use planning issues,
and other related issues.
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Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
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Section 3
ALTERNATIVE 1 -- STATUS QUO
3.1
INTRODUCTION
The Status Quo Alternative assumes the City of Rio Vista will retain the ownership,
management, operation and maintenance of the Airport. The data used for the evaluation,
including Federal Aviation Administration (FAA) Airport Improvement Program grants
and California Department of Transportation, Division of Aeronautics (Caltrans) grants
have been reviewed since the Airport opened in May 1994 and are presented in Section 2.
Other grants and loans are also included. The historical operating revenues and expenses
of the Airport Proprietary Fund are based on an eight-year historical period as presented
in Section 2. The management, operation and maintenance of the Airport are based on
information provided by the City.
3.2
GRANTS AND LOANS
To date, over $13 million has been spent on the federal, State and local levels to develop
the new Rio Vista Municipal Airport since 1983.
The City has accepted 13 FAA Airport Improvement Program grants, beginning with the
planning, land acquisition and building of the new airport, totaling $9,903,050 as detailed
in Table 2-1. To date, Caltrans grants have totaled $462,817 as detailed in Table 2-2.
Airport development in 2007 included a $1,000,000 Economic Development
Administration (EDA) grant and a $500,000 Community Development Block Grant.
Over the years, funds have been borrowed from the City General Fund, the Water and
Beach Drive Treatment Facility Enterprise Fund and the Municipal Improvement Capital
Project Fund to fund deficits in the Airport Enterprise Fund as follows:
Due to General Fund
Advances from General Fund
Advances from Municipal Improvements
Advances from Water
Advances from Beach Drive Treatment Facility
TOTAL
3.3
$ 103,399.00
801,656.00
153,507.00
25,883.77
51,523.60
$1,135,969.37
OPERATING REVENUES AND EXPENSES
The operating revenues and expenses are presented earlier in Section 2 and cover Fiscal
Years 2007 through 2014, an eight-year period. Based on the information presented, it is
not expected that the average annual operating surplus of about $6,000 will change
without increased aviation activity, e.g., based aircraft, aircraft operations, retention of a
fixed base operator, or other new revenue sources are developed on the Airport.
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It should be noted that the actual annual revenues and expenses of the Airport Enterprise
Fund cannot be ascertained at this time (See Section 2).
3.4
MANAGEMENT, OPERATION AND MAINTENANCE
Based on information provided by the City, the management and operation of the Airport
has varied widely since the last full-time Airport Manager left prior to 2001. Since 2001
limited management and oversight responsibilities for the Airport have been vested with
a number of other City departments filling in on an as-needed basis. These have ranged
from contract personnel responsible for other activities within the City, acting City Public
Works Directors and outside engineering firms. There has not been consistent oversight
in managing and operating the Airport that has cost the City (and Airport administrative
time) both time and money continuously catching up. This is particularly applicable to
FAA Airport Improvement Program and Caltrans grant procedures as requests for
funding for eligible projects generally are programmed up to five years prior to funding.
The management, operation and maintenance of the Airport will continue to be
performed by City staff. In this alternative, it is not expected that the City will retain the
services of a contract management firm or individual to manage the day-to-day
operations and maintenance of the Airport. In addition, based on the non-response to the
most recent Request for Proposals for a fixed base operator at the Airport, the
management, operation and maintenance of the Airport is unlikely to change in the
future.
3.5
MAINTAIN STATUS QUO
It is assumed that the Airport will continue to operate under the same conditions and as
presented earlier in Section 2 with no significant changes in aviation activity or
management and operation of the facility.
3.5.1
FAA Airport Improvement Program Grants
The FAA Airport Improvement Program assists the development of a nationwide system
of airports by providing funding for airport planning and development projects at airports
included in the National Plan of Integrated Airport Systems. Funding of the Airport
Improvement Program has been amended several times over the years with the most
recent passage of the FAA Modernization and Reform Act of 2012 continuing funding
for general aviation airports referred to as nonprimary entitlement grants specifically for
general aviation airports listed in the latest published National Plan of Integrated Airport
Systems. A funding condition of nonprimary entitlements is that Congress must
appropriate $3.2 billion or more for nonprimary entitlement funds to exist in that fiscal
year.
The Rio Vista Municipal Airport is included in the National Plan of Integrated Airport
Systems and is eligible for the annual $150,000 nonprimary entitlement grant.
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Nonprimary entitlement grants are available to use in the fiscal year they become
available and the following three fiscal years. The City may delay using their entitlement
grants for the first three years they become available and use all of the money in the final
year in order to fund a larger project as occurred in 2014.
FAA also receives State Apportionment funds and distributes any remaining funds to a
discretionary fund, funds that are distributed based on a national prioritization system.
Discretionary funds are distributed to projects that best carry out the purpose of the
Airport Improvement Program with highest priority given to safety, security,
reconstruction, capacity and standards.
As long as Congress continues to appropriate $3.2 billion annually in FAA Airport
Improvement Program funding and the City keeps the FAA Airport Capital Improvement
Program (ACIP) up-to-date on an annual basis, the Airport should continue to be eligible
to receive the $150,000 annual nonprimary entitlement grants.
3.5.2
California Department of Transportation, Division of Aeronautics (Caltrans)
Grants
The City applies for, and receives, Caltrans grants that provide funding for 5 percent of
total FAA Airport Improvement Program grants. The eligibility of the City to continue to
receive the 5 percent matching funds is obtained through Caltrans Capital Improvement
Program that is updated biennially. Projects in Caltrans Capital Improvement Program
must be consistent with projects included in the FAA Airport Capital Improvement
Program to be eligible for the 5 percent matching grant. Caltrans matching grants are
limited, and eligible applications are funded as funds become available. Projects must
not be started prior to allocation of matching funds by the State.
The City applies for, and receives, the annual $10,000 grant for use in the operation and
maintenance of the Airport. The eligibility of the City to continue to receive the annual
$10,000 grant is through the annual California Aid to Airports Program (CAAP)
Certification.
The City is eligible to receive Acquisition and Development grants for projects included
in the Capital Improvement Program and passed as an element of the State Budget. The
City is also eligible to apply for the Local Airport Loan Program primarily used by
airports to fund revenue-generating facilities.
3.5.3
Management, Operation and Maintenance
Prior to 2001, the City had a full-time Airport Manager who probably had the following
responsibilities, among others. It should be noted that, even if the airport responsibilities
are assigned to others in the City, the basic functions are the same. It would be
advantageous to the City to have a person designated to fulfill and monitor the following
activities:
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Prepare annual airport budget, monitor expenses and track revenues.
Negotiate, prepare and administer lease agreements with all airport tenants including
fixed base operator(s), tenant hangar leases, ground and farming agreements and
commercial business leases.
Prepare the five-year Airport Capital Improvement Plan (ACIP) for FAA Airport
Improvement Program grants.
Coordinate the ACIP with Caltrans Capital Improvement Program to ensure
eligibility for Caltrans matching grants for FAA AIP grants.
Coordinate, oversee and perform routine inspections of the airport’s runway,
taxiways, safety areas, aircraft parking apron, perimeter fencing, access control gate
and navigational aids.
Identify the maintenance and repair requirements for the airfield infrastructure,
facilities, pavement, grounds and equipment and oversees that maintenance and
repairs meet Federal, State and County requirements.
Issue Notice to Airmen (NOTAM) alerting pilots of closed runway or runway
hazards, inoperable radio navigational aids, extreme weather conditions and other
notices.
Oversee the construction of FAA AIP grants, e.g., apron and taxiways, and
administrative functions, e.g., invoices and reports to FAA.
Manage preparation of FAA AIP grant applications and ensure all requirements are
met, e.g., environmental requirements, plans and specifications and approved by
FAA.
Monitor compliance with FAA Rules and Regulations and requirements in
accordance with FAA Advisory Circulars.
Monitor compliance with the Environmental Protection Agency’s Storm Water
Pollution Prevention Plan.
Establish working relationships with the FAA and Caltrans personnel. Meet with
FAA and Caltrans personnel when they visit the Airport.
Investigate any complaints and provide information regarding airport operations,
policies, rentals, fees and field rules.
Monitor the results of the Airport fund for revenues and expenses in accordance with
FAA Airport Grant Assurances.
Prepare reports for the Airport Commission, City Manager, City Council and other
regulatory or political entities as required.
A well-qualified Airport Manager can provide the guidance for the City to make informed
decisions as they relate to the future of the Airport. In addition, a well-qualified Airport
Manager would keep current within the aviation community and take advantage of
marketing and potentially attracting additional tenants and users to the Airport. In turn,
the City must be prepared to allocate the time and resources necessary to make decisions
within a timely manner.
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3.6
SUMMARY
The summary of retaining the Airport under the Status Quo Alternative is as follows:

There would be no requirement to reimburse the FAA for any grants received under
the Airport Improvement Program.

There would be no requirement to reimburse Caltrans for any FAA Airport
Improvement Program matching grants or the Acquisition and Development grant.

The Airport would continue to be eligible for FAA Airport Improvement Program
grants and Caltrans grants and loans in the future as long as the Airport remains open
as a public-use airport and the City of Rio Vista continues to be the Airport sponsor.

The Airport, based on current management and operation and aviation activity levels,
would not be able to retire the $1.3 million in debt to other City funds.

The benefit to the City of retaining the Status Quo would be the retention of the
control of the Airport and surrounding land uses.
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Section 4
ALTERNATIVE 2 – FAA AIRPORT PRIVATIZATION PILOT PROGRAM
4.1
INTRODUCTION
The Federal Aviation Reauthorization Act of 1996 established the Airport Privatization
Pilot Program (APPP) designed to allow up to five jurisdictions to apply to the Federal
Aviation Administration (FAA) for permission to sell or lease an airport on a long-term
basis. The FAA Modernization and Reform Act of 2012 increased the number of airports
in the Program to 10. Of the 10 airports in the Program, at least one airport must be a
general aviation airport and no more than one large-hub air carrier airport may
participate. General aviation airports can be either leased or sold. Air carrier airports can
only be leased.
The law authorizes the FAA to exempt participating airports from certain federal
requirements. Specifically, the airports may be exempted from all or part of the
requirement to use airport revenue for airport-related purposes, to repay federal grants, or
to return airport property acquired with federal assistance upon the lease or sale of the
airport deeded by the federal government.
The findings are based on discussions with FAA representatives in Washington, D.C.
who administer the Program and additional research into the Program activities since the
Federal Reauthorization Act of 1996 authorizing the Program. Discussions were also
held with representatives of California Department of Transportation, Division of
Aeronautics (Caltrans) and airport sponsors who are in various stages in the Program.
4.2
FEDERAL AVIATION ADMINISTRATION AIRPORT PRIVATIZATION
PILOT PROGRAM (APPP)
To date, the Program has not resulted in the privatization of many airports. Only two
long-term leases have been approved (Stewart Airport and Luis Munoz Marin Airport)
and currently only one of the 10 slots is in the Final Application process (Hendry County
Airglades Airport). No sale of an airport has occurred.
The Stewart Airport in New York was the first airport to be privatized under the Program.
National Express Group obtained a 99-year lease in 2000 for the Stewart Airport in
Newburgh, New York. In 2006, National Express abandoned its airport division and sold
the lease for the Airport to the Port Authority of New York and New Jersey which is
developing the Stewart Airport into the Region’s fourth major airport.
Other airports submitted Preliminary Applications to FAA for inclusion in the Program
but they were later withdrawn or terminated. These included:

Louis Armstrong New Orleans International Airport. (Application withdrawn in
October 2010)
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New Orleans Lakefront Airport. (Application terminated in 2008)
Brown Field Municipal Airport, San Diego. (Application withdrawn in 2001)
Niagara Falls International Airport, Niagara Falls. (Application withdrawn in 2001)
Rafael Hernandez Airport, Puerto Rico. (Application withdrawn in 2001)
As of February 2012 there were four airports in the Program:
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Chicago Midway International Airport. The Preliminary Application was approved
by the FAA in 2006 and secured the one large-hub (air carrier airport) slot in the
APPP. (Preliminary Application was withdrawn in September 2013)
The Puerto Rico Ports Authority for the Luis Munoz Marin Airport. Preliminary
Application was approved in October 2009. Final Application was approved in 2013.
Hendry County Airglades Airport in Clewiston, Florida. Preliminary Application was
approved in October 2010.
Gwinnett County Airport—Briscoe Field in Lawrenceville, Georgia. Preliminary
Application was approved in May 2010. (Preliminary Application was withdrawn in
June 2012)
By September 2013 there were only two active applications remaining in the Program:
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Luis Munoz Marin Airport, Puerto Rico. The Puerto Rico Ports Authority for the
Luis Munoz Marin Airport. (Final Application approved by FAA in February 2013)
Hendry County Airglades Airport in Clewiston, Florida. (Final Application approval
by FAA is pending and an Environmental Assessment is being prepared)
Therefore, as of February 2015, Hendry County Airglades Airport is the only still active
application in the Program.
4.3
REASONS FOR WITHDRAWING APPLICATIONS
There have been numerous reasons cited for the withdrawing of Preliminary Applications
by the individual airport sponsors, including:
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The extensive amount of time and money involved in completing the Preliminary and
Final Application processes.
Numerous requirements for submitting a Final Application and the approval process
could take up to 36 months or longer.
Financial risks to the airport sponsor of default by a private operator, e.g., risk to the
public of having to repay debt and operational costs.
The damage caused by Hurricane Katrina is one reason cited for termination of the
application for the New Orleans Lakefront Airport.
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The New Orleans Aviation Board withdrew the Louis Armstrong New Orleans
International Airport from the Program as the Board felt that the New Orleans Region
would be better served by focusing on developing the Airport to improve operations
and to become a more effective asset for the City.
Local citizen and aviation interest groups’ opposition to privatization.
Loss of interest in the process by the airport sponsor and/or private operator.
Concern over future changes to FAA policies and procedures.
The turndown in the aviation industry following the events of 9/11.
The May 2014 Congressional Research Service Report, Airport Privatization: Issues and
Options for Congress, noted the lack of interest in privatization could be a result of 1)
readily available financing sources for publicly-owned airports; 2) barriers or lack of
incentives to privatize; 3) potential implications for major stakeholders; and 4)
satisfaction with the status quo.
4.4
GENERAL AVIATION AIRPORTS
Airport sponsors were contacted at the two general aviation airports that progressed the
furthest in the privatization program, and a summary of their experience is presented
below.
Gwinnett County Airport—Briscoe Field
Gwinnett County submitted a Preliminary Application that was approved by the FAA in
May 2010. The Board of Commissioners of Gwinnett County received three responses to
a Request for Qualifications in August 2010, rejected the three responses and postponed a
decision on requesting specific proposals. The Board created the Gwinnett County
Airport Privatization Citizen Review Committee and issued a Request for Proposals to
privatize Briscoe Field in December 2011. Only one proposal was received and,
following a lengthy process, including recommendations to the Board by the Gwinnett
County Airport Privatization Citizen Review Committee, local citizen opposition to the
Airport becoming a Federal Aviation Regulation Part 139 Airport with commercial
service and much local debate, the Board of Commissioners rejected the proposal in June
2012. The Application was withdrawn from the FAA APPP in June 2012.
One of the primary objectives of the public-private partnership initiative was to establish
the Airport as a Federal Aviation Regulations (FAR) Part 139 Commercial Service
Airport in the Metropolitan Atlanta Region. This would require the Airport to be leased,
not sold, to a private operator.
Hendry County Airglades Airport
Hendry County submitted a Preliminary Application that was approved by the FAA on
October 18, 2010. The County has been working on the Final Application since the
Preliminary Application was approved. The primary objective in privatizing the Airport
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is to transform a lightly-used general aviation airport into an air cargo distribution center.
The abundant land, nearby rail service, skilled workforce and strategic location to the
nearby road system were cited as available assets to achieve the County’s objectives.
Based on discussions with representatives of Hendry County, costs for the application
processes (Preliminary and Final) have totaled between $2 and $3 million. In addition, a
Phase I Environmental Site Assessment, a Phase II Environmental Oversight and an
Environmental Assessment are estimated to cost up to an additional $500,000. A draft
Environmental Assessment is expected to be completed in 2015 and will be followed by
public and agency review and public hearings. All of these costs are being incurred by
the County and potential private owner, there is no FAA funding. The County is
negotiating exclusively with the Airglades International Airport (AIA) Group who has
contributed significant funding for the privatization process and is considered by the FAA
as qualified managers/buyers of the Airglades Airport. Following recent FAA approval,
the Airport is initially being operated under a management agreement to the AIA Group.
The County retains airport ownership. The initial management agreement will help
provide leverage for the AIA Group to obtain financing for the acquisition of the Airport.
According to the FAA, it may take another year or two to complete the privatization
process.
4.5
RIO VISTA MUNICIPAL AIRPORT
Based on discussions with FAA, there are currently nine openings in the APPP, and the
City of Rio Vista can submit a Preliminary Application to the FAA for a slot in the
Program.
4.5.1
FAA Considerations
Once the Preliminary Application is received, the FAA has 30 days to accept the Rio
Vista Municipal Airport into the Program or reject the Preliminary Application. If the
Airport is accepted by FAA approval of the Preliminary Application, a slot is held in the
Program for the City’s Final Application. Each Airport is evaluated individually as no
two airports are alike. In addition, the FAA may have additional questions or require
clarification and/or additional information on what is included in the City’s Preliminary
Application. The Preliminary Application would include:
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Sponsorship (City of Rio Vista) Information
The City of Rio Vista’s Authority to Lease and/or Sell the Airport
Objectives of the City in applying for the Privatization Process
Description of the Airport Property
Financial Statements for the Airport for the prior Two Years
Description of the Proposed Process and Timeline
Request for Interest and Qualifications*
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Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
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*The lease and/or sale of the Airport do not have to go through a competitive bidding
process. However, if the City chooses to go forward with a Preliminary Application, it
would be desirable to include a Request for Interest and Qualifications at the initial stage
of the investigation.
Once the FAA approves the Preliminary Application, the City can select a private owner
or operator and negotiate a management and/or sales agreement with the private operator
as part of the Final Application submitted for approval by the FAA. There is no timeline
for the FAA to complete its review of the Final Application. Documentation of the
buyer’s ability to meet the requirements of the Program and to operate an airport will be
required by the FAA. There is a 60-day public review and comment period after FAA
gives notice of its proposed approval. After that the FAA completes its review and
prepares its Findings and Record of Decision (ROD). An Environmental Site
Assessment will also be required.
Under the Privatization Program, the City may receive an exemption to use the lease or
sale proceeds for non-airport purposes. For general aviation airports this requires
consultation with owners of aircraft based at the Airport. Generally, all proceeds from
the lease or sale of airport land must be used for the capital or operating costs of the
airport. The City can also be exempted from any obligation to repay FAA Airport
Improvement Program grants and return property acquired with federal assistance upon
lease or sale of the Airport. While the FAA may grant exemptions from existing
repayment obligations, the Airport must abide by other grant assurance obligations.
Following privatization of the airport, the private operator would only be able to compete
for/and receive FAA Airport Improvement Program discretionary funding for future
improvement projects at the Airport compared to the current $150,000 annual general
aviation entitlement grant and any discretionary funding the City would receive from
FAA. The private operator would receive up to 70 percent FAA grant funding compared
to the 90 percent FAA grant funding the City currently receives for improvement
projects. The private operator will have to comply with grant assurances previously
made by the City.
4.5.2
Caltrans Division of Aeronautics Considerations
Based on discussions with Caltrans Division of Aeronautics representatives, State grants
and loans are governed by the Public Utilities Code, and an airport must be owned by a
public agency to be eligible to receive Caltrans grants. If the City submits a Preliminary
Application to the FAA under the Program, the City can apply to Caltrans for a waiver of
reimbursement of any previous Caltrans Annual or Matching Grants. A request for this
type of waiver would apply only if the Airport remains open as a public-use airport and
would require further consideration by Caltrans Division of Aeronautics. Following
privatization of the airport, the private operator would not be eligible for the $10,000
Annual Grant and would not be eligible for FAA Airport Improvement Program
matching grants.
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4.5.3
Other Considerations
The requirement for repayment of any portion of the $1 million Economic Development
Administration (EDA) and the $500,000 Community Development Block grants (CDBG)
to the City in 1998 for the terminal building require review of the original grant
documents and the “Special Conditions” attached to the grants. The City established the
“useful life” (not how long the building would stand but how long the building would be
used for its original purpose) of the terminal building. As a private entity is never
eligible to receive an EDA grant, transfer of the terminal building may require
reimbursement of the unamortized portion of the “useful life” of the grant as specified in
the Special Conditions.
4.6
SUMMARY OF THE FAA AIRPORT PRIVATIZATION PILOT PROGRAM TO
DATE
The FAA APPP, initiated in 1996, has been in effect for 18 years. To date, the Program
has not had a history of success in privatizing airports. Nine of the 10 slots in the
Program are currently available. Only two long-term leases have been successfully
negotiated (New York’s Stewart Airport and Puerto Rico’s Luis Munoz Marin Airport).
The Stewart Airport 99-year lease was subsequently sold to the Port Authority of New
York and New Jersey. No sale of an airport has occurred in this Program.
Only two general aviation airports have successfully submitted Preliminary Applications
for a slot in the Program (Hendry County Airglades and Gwinnett County--Briscoe Field
Airports). The application for the Gwinnett County Airport—Briscoe Field has since
been terminated. While these two airports are currently general aviation airports, the
intent of privatization was to convert the two airports to a cargo and a commercial service
airport, respectively. The New Orleans Lakefront Airport general aviation airport was to
be privatized to accommodate more high-end corporate aviation users and aircraft. These
airports already have more aviation facilities and activities (e.g., runway length,
navigational aids, based aircraft, aircraft operations and jet fuel) than the Rio Vista
Municipal Airport.
The May 2014 Congressional Research Service Report, Airport Privatization: Issues and
Options for Congress, noted the requirement for several significant policy changes to
increase interest in the APPP including the following:

Making privatization more attractive to public-sector owners by facilitating the use of
privatization revenue for non-airport purposes.

Providing similar tax treatment to bonds issued by public-sector and private-sector
airport operators, as public-sector operators now have access to less costly long-term
finance than private operators.
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4.7
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Easing requirements for private owners to comply with assurances previously made
by public-sector owners to obtain federal Airport Improvement Program (AIP) grants.

Accelerating the application and approval procedures for the APPP
SUMMARY
The summary of privatizing the Airport under the FAA Airport Privatization Pilot
Program (APPP) alternative is as follows:
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It appears that the FAA Airport Privatization Pilot Program is probably not
appropriate for the Rio Vista Municipal Airport given the interest in and experience
with the APPP to date.

The general aviation airports that have inquired about the program to date have either
been interested in converting the general aviation airport into an air cargo or air
carrier type airport or accommodating a higher level of general aviation activity (e.g.,
business jets and corporate aviation) and have better facilities (e.g., longer runways,
jet fuel) than those at the Rio Vista Municipal Airport.

A goal of the FAA APPP is to enhance activity and development at general aviation
airports.

Based on experience to date with the APPP, it could cost the City an extensive
amount of time and money to proceed with an application.

There could be a significant reduction in potential FAA Airport Improvement
Program funding for future improvement projects at the Airport.
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The Airport would not be eligible for annual grants and FAA Airport Improvement
Program grants from Caltrans.
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Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
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Section 5
ALTERNATIVE 3 -- OUTRIGHT SALE OF THE AIRPORT
5.1
INTRODUCTION
This alternative would involve the outright sale of the Airport to a private entity without
use of the Federal Aviation Administration (FAA) Airport Privatization Pilot Program
(APPP) described in Alternative 2. However, the sale of the Airport would have to be in
accordance with other FAA guidelines and regulations. These are described in FAA
Order 5190.6B, FAA Airport Compliance Manual, Paragraph 6.15 Privatization Outside
of the APPP. The sale or lease of a public airport to a private airport operator is not
prohibited by law and the FAA would be requested to approve a transfer of ownership or
operating responsibility.
5.2
FAA CONSIDERATIONS
FAA Order 5190.6B, Paragraph 6.7a, Rights and Powers, states in part that “when an
airport sponsor transfers authority to another sponsor, whether public or private, the
FAA will review the transfer document to ensure there is no ambiguity regarding
responsibilities for the federal obligations.” As a condition of the release, the FAA will
require the new operator to assume all existing grant obligations. FAA Order 5190.6B,
Paragraph 6.11, New Sponsor Document Review, requires the FAA to determine whether
the potential sponsor is capable of assuming federal responsibilities and obligations and
assurances.
The new private operator would become the airport sponsor and would be responsible for
compliance with FAA grant conditions and assurances. However, as described later, the
Rio Vista Municipal Airport would not be eligible for FAA grants as it is neither an air
carrier nor general aviation reliever airport.
The FAA may require the public agency selling the airport to retain concurrent
responsibility for certain grant assurances, if appropriate, as with the APPP. For
example, FAA may require the public agency to maintain its ability to use its local zoning
power to protect the aircraft approach and departure paths to and from the airport and to
protect the airport environs from incompatible land uses and obstructions. (See FAA
Grant Assurance 21, Compatible Land Use and FAA Order 5190.6B, Paragraph 6.7a,
Rights and Powers).
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Special considerations, or differences from the APPP process described in Alternative 2,
spelled out in FAA Order 5190.6B, Paragraph 6.15, Privatization Outside of the APPP,
include the following:
1. The transfer will not be approved unless the private operator agrees to assume all of
the existing obligations of the public sponsor under grant agreements and property
deeds.
2. The FAA may not exempt the public sponsor from the requirements of Grant
Assurance 25, Airport Revenues.
3. It is not necessary for the public sponsor to return to the FAA the amortized value of
grant-funded projects or property received from the federal government as long as the
grant-funded facilities and donated property continue to be used for the original
airport purposes.
4. The private operator will not be eligible for apportionment of FAA Airport
Improvement Program entitlement funds.
5. FAR Part 139, Airport Certification, and Transportation Security Administration
regulations and transfer requirements do not apply to the Rio Vista Municipal
Airport.
FAA Grant Assurance 25, Airport Revenues, requires all revenue generated by the
airport, e.g., sales and leases, and any local taxes on aircraft fuel to be used for the capital
or operating costs of the airport. The rates and charges imposed by the private operator
must be reasonable and not unjustly discriminatory pursuant to FAA grant assurances.
These rules and regulations limit the potential for airport privatization outside the APPP
as noted in the May 2014 Congressional Service Report referred to earlier. For example,
a private owner/operator of the Rio Vista Municipal Airport would not be eligible to
receive FAA Airport Improvement Program grants for airfield, apron, navigational aid
and other eligible improvements because the Airport is neither a General Aviation
Reliever Airport nor a Nonprimary Commercial Service Airport that accommodates at
least 2,500 passenger boardings a year. Therefore, the private owner/operator would
have to fund any needed improvements.
FAA Order 5190.6B, Paragraph 6.6(e), Private Airport Sponsors, requires the private
sponsor to assure the FAA that the airport will continue to function as a public airport. In
addition, FAA cannot grant any exemptions from grant assurance obligations or existing
repayment obligations of the public sponsor.
Therefore, as noted in the recent Congressional Service Report referred to earlier,
privatization outside the APPP is generally unattractive to both public airport owners and
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Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
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potential private investors as it is likely to result in the loss of FAA Airport Improvement
Program grants and higher financing costs. Also, the privatization will not provide the
public sector owner with revenues that can be used for other municipal purposes.
5.3
CALTRANS, DIVISION OF AERONAUTICS CONSIDERATIONS
Based on discussions with Caltrans Division of Aeronautics representatives, as noted in
Alternative 2, an airport must be owned by a public agency to be eligible to receive State
grants, loans or FAA Airport Improvement Program matching grants. State grants and
loans are governed by the Public Utilities Code, and an airport must be owned by a public
agency to be eligible to receive Caltrans grants. Following privatization of the airport,
the private operator would not be eligible for the $10,000 Annual Grant and would not be
eligible for FAA Airport Improvement Program matching grants.
The City can apply to Caltrans for a waiver of reimbursement of any previous Caltrans
Annual or Matching Grants only if the Airport remains open as a public-use airport and
would require further consideration by Caltrans.
5.4
OTHER CONSIDERATIONS
The requirement for repayment of any portion of the $1 million Economic Development
Administration (EDA) and the $500,000 Community Development Block grants (CDBG)
to the City in 1998 for the terminal building require review of the original grant
documents and the “Special Conditions” attached to the grants. The City established the
“useful life” (not how long the building would stand but how long the building would be
used for its original purpose) of the terminal building. As a private entity is never
eligible to receive an EDA grant, transfer of the terminal building may require
reimbursement of the unamortized portion of the “useful life” of the grant as specified in
the Special Conditions.
5.5
OTHER AIRPORTS
Based on a review of other public airport sponsors who have attempted to sell their
airports in recent years, it is very difficult or impossible to do so because of FAA
regulations. Therefore, few if any, publicly-owned airports, have been privatized in
recent years outside the APPP.
There have been some sales/transfers of public airports to another public sponsor but for
air carrier airports. For example, the transfer of the San Diego International Airport from
the San Diego Unified Port District to the San Diego County Regional Airport Authority
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in 2003. A 1985 Joint Powers Agreement between the cities of Ontario and Los Angeles
gave Los Angeles control of the airport. The City of Ontario and San Bernardino County
are now trying to reclaim the Ontario International Airport for the Ontario International
Airport Authority.
After the Second World War, many airports were released/transferred/conveyed from the
U.S. Government to public airport sponsors (e.g., cities and counties). Over time several
of these airports were later transferred from one public sponsor to another, e.g., from a
county to a city within the county.
5.5
SUMMARY
The summary of the outright sale of the Airport alternative is as follows:

Private individuals, partnerships or corporations who own and operate an airport
intended for public-use may qualify as an FAA Airport Improvement Program
sponsor provided they operate as a general aviation reliever airport or have at least
2,500 annual passenger boardings (enplanements) – criteria that the Rio Vista
Municipal Airport does not meet. Therefore, the Airport would not be eligible for
FAA airport development projects, airport master planning, noise compatibility
planning and noise program implementation.

The Airport would not be eligible for annual grants and FAA Airport Improvement
Program matching grants from Caltrans.

There have been no sales of publicly-owned airports to private operators in recent
years. In fact, overcoming this was one of the goals of the FAA APPP described
earlier in Section 4.

Outside of the FAA APPP, the sale of a publicly-owned airport to a private operator
would face even greater hurdles, e.g., lack of future FAA and Caltrans funding.
Rio Vista Municipal Airport
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Section 6
ALTERNATIVE 4 -- CONTRACT MANAGEMENT
6.1
INTRODUCTION
The Airport is owned by the City of Rio Vista and is managed, maintained and operated
by the City Public Works Department. Contract management is the contracting of the
management, maintenance, and operation of the Airport, or any portion thereof, to another
entity. There are several types of contract management entities and types of services
provided to airport sponsors (owners) depending on the size of airport and services
provided. The following discusses contract management firms (or an individual), fixed
base operator, and local airport pilots and advocates that have formed associations to
manage small general aviation airports. In all cases, the City would, however, retain
ownership and control of the Airport.
6.2
CONTRACT MANAGEMENT FIRMS
There is an increasing reliance on the private sector to assume the operation and
maintenance of public facilities on relatively short-term (five years or less) management
contracts to achieve greater efficiency and savings in the operation of a facility. The
contract management firm will have the resources and personnel necessary for the
efficient operation of the airport. While the introduction of contract management might
reduce direct costs to the City, a third party contract management entity has to make a
profit to justify its involvement, and that is not easy where costs have already been
reduced to bare minimums.
Typically, an annual operating budget would be proposed by the contract management
firm for approval by the City. The funds needed for budgeted items would be
appropriated by the City and passed through to the contract management firm. Airport
user fees and charges, including rent, are paid directly to the City, and the contract
management firm receives a management fee from the City. Alternatively, all user fees
and charges could by collected by the contract management firm who would account for
the financial operation of the airport.
The contract agreement is the single most important element of contract
management. The contract agreement defines the role and expectations of the City
and the requirements of the contract management firm. Typically, the contract
management agreement is negotiated for a minimum of five years. The agreement will
delineate the responsibilities of both the City and the contractor in detail. The
agreement will also specify when and in what form regular reports are provided to the
City.
There are a number of contract management firms that provide a variety of contract
management services to airports. A contract management firm would have the personnel
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and knowledge to manage, maintain and operate the Airport. A well thought-out and
negotiated contract management contract would allow the City to have oversight for the
future development of the Airport and not be concerned with the day-to-day management
and operations. For instance, a contract management firm could assume the responsibility
of any or all of the following:

Provide general aviation services including fueling, ground handling, aircraft storage
(hangars and tiedowns), passenger services for corporate, private and government
operators.

Manage all services and facilities including inspection of the airfield and navigational
aids and coordinate maintenance and operations functions when needed.

Coordinate with the Federal Aviation Administration (FAA) regulatory requirements
including preparation of Airport Improvement Program grant applications, manage
implementation of FAA grants including closeout documentation. Coordinate with
Caltrans, Division of Aeronautics, including preparation of Caltrans matching grant
applications and management of the grant. Be available for visits or inspections by
either agency.

Issue Notices to Airmen (NOTAMs). NOTAMS are issued when there is a temporary
change in conditions at the Airport or a permanent change in conditions that will be
published in the next update of the proper navigational charts.

Monitor the financial operation of the airport, including operating revenues and
expenses and grants-in-aid.

Provide marketing services, develop a business plan for the Airport, provide marketing
services, recommend capital improvement projects, and oversee development projects
on the Airport.
The City would benefit from having the Airport maintained and operated by experienced
airport management professionals. The contract management firm would have employees
who are experienced in the management, operation, and maintenance of airports. In
addition, the contract management firm would have resources within the firm to address
any issues that may arise. Contract management firms typically retain existing airport
employees to the maximum extent feasible.
In addition to daily airport management and operations responsibilities, a contract
management firm could also be involved in developing airport property through a longterm lease agreement for both aviation and nonaviation development.
The Los Angeles County reliever and general aviation airports and the Oceanside
Municipal Airport are currently operated by contract management firms. Other reliever
and general aviation airports with high-performance aircraft, as well as air carrier
airports, are operated by contract management firms in other parts of the country.
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Alternatively, a well-qualified and experienced individual would be retained by the City
on a contract basis to manage and operate the Airport. A well-qualified individual would
perform any or all of the same services as a contract management firm.
6.3
FIXED BASE OPERATOR
A fixed-base operator (FBO) is a commercial business granted the right by an airport
owner to operate on the airport. The services provided vary by airport and may include
fueling, flight training, aircraft maintenance and repairs, passenger terminal/pilots lounge,
aircraft charter and rental, aircraft hangars and tiedowns, aerial tours and sightseeing,
aircraft sales, restrooms and ground transportation. A full-service FBO could also
function as an on-airport manager on a day-to-day basis addressing maintenance and
operational issues.
On the national level, the tendency has been for the private-sector, e.g., fixed base
operators to have nonexclusive aircraft fueling rights on an airport. It should be noted
that only the airport sponsor can exercise proprietary exclusive rights to aircraft fueling.
The practice of providing the FBO with nonexclusive aircraft fueling rights has provided
higher quality and economically stronger FBOs who are capable of offering a wider
range of services to the public. A profitable fueling service helps to support other less
profitable but required FBO services, e.g., customer amenities, aircraft parking apron
areas, etc. Fuel prices competitive with nearby airports could result in lower fuel prices,
adding to the attractiveness of the airport as a potential fuel stop.
An FBO provided aircraft maintenance services, aircraft rental services, avionics repair
and food services within the terminal building at the Rio Vista Municipal Airport until
2008 when the FBO ceased operations. Currently, the Travis Aero Club provides flight
training and the City provides fueling services at the Airport.
The City issued a Request for Proposals (RFP) in June 2011 for a Non-Exclusive Fixed
Base Operator for the Rio Vista Municipal Airport. The City’s intent was to enter into a
one to five-year contract with the successful bidder with an additional renewal period to
be negotiated. The proposed Non-Exclusive Fixed Base Operator contract provided for
the basic rent of hangar and offices facilities and a percent of fees collected for aircraft
parking and a fuel flowage fee to go to the FBO. The RFP noted that additional facilities
and equipment could be made available to the successful proposer. The City did not
receive any responses to this RFP.
It should be noted that the absence of an FBO at the Rio Vista Municipal Airport is not
unique as the number of FBOs and the services they provide at general aviation airports
have declined in recent years. As a result, a number of airport owners and operators have
found it difficult to attract an FBO and have had to provide some of the services typically
performed by an FBO in the past, e.g., aircraft fueling.
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6.4
LOCAL PILOTS ASSOCIATION
Another form of contract management started in California through the formation of the
Turlock Regional Aviation Association. City officials, reluctant to spend City money on
an airport located about 8 miles from the City, considered several alternatives in 1999 for
the future of the Airport including selling the Airport outright; forming an Airport
District; transferring ownership to Merced County; and reversion to the FAA. Each
alternative presented challenges but would not preclude the City’s financial
responsibility. In 2000, the City of Turlock transferred management authority to the
Turlock Regional Airport Association, a group of local pilots dedicated to maintaining
and improving the Airport. Since 2000, the City has received close to $2.5 million in
FAA Airport Improvement Program grants for Airport development projects. The
Airport is, and has been, self-supporting by fees generated by Airport users, and the City
renewed the Management Agreement for an additional ten-year period beginning in
December 2011.
The City accepts FAA Airport Improvement Program grants and processes payments in
compliance with the oversight, monitoring and compliance requirements of FAA grant
assurances. A City staff person is assigned as the City Airport Manager to interact with
the Association and facilitate grants, programs and other issues with respect to the
Airport.
The most recent airport to come under the management of a group of pilots and aviation
advocates is the Sutter County Airport. The Sutter Buttes Regional Aviation Association
assumed control of the Airport from the County on July 1, 2014. The County had
struggled to make ends meet in recent years as County expenses outpaced relatively flat
airport revenues. The new Association anticipates that previous County labor expenses
will now be provided by volunteers, and the cost savings will help the Association realize
its goals to increase community outreach and possibly bring in new flight training and
aircraft rental programs. A County staff person is assigned as the County Airport
manager to interact with the Association and facilitate grants, programs and other issues
with respect to the Airport. A Sutter County Supervisor recently commented that “The
change in airport management removes a layer of bureaucracy and will result in
community contact with the airport.”
The Associations have broad authority and responsibilities to manage all phases of the
Airport activities including collection of rental fees; negotiations of leases; maintenance
of the Airport; payment of taxes and utilities; and providing the local matching funds for
FAA and Caltrans airport improvement grants.
The Turlock Regional Aviation Association and the Sutter Buttes Regional Aviation
Association are official chapters of the California Pilots Association (CalPilots) and
participate in CalPilots’ 501(c)(3) nonprofit status. The City of Turlock and Sutter
County retain the sponsorship (ownership) and are responsibility for the safe and efficient
operation of the airports and compliance with all Federal regulations, obligations and
grant assurances.
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6.5
SUMMARY
The summary of retaining the Airport under the contract management alternative is as
follows:

There would be no requirement to reimburse the FAA for any grants received under
the Airport Improvement Program.

There would be no requirement to reimburse Caltrans for any FAA Airport
Improvement Program matching grants.

There would be no requirement to reimburse Caltrans for the annual $10,000 grant for
maintenance and operation of the Airport.

The Airport would continue to be eligible for FAA Airport Improvement Program
grants and Caltrans grants and loans in the future as long as the Airport remains open
as a public-use airport.

The benefit to the City of retaining the services of a contract management firm (or
individual) would be to eliminate the need for day-to-day operations and maintenance
of the Airport.

The annual operating and maintenance costs of running the Airport would be reduced.

The disadvantage to the City of retaining the services of a contract management
agreement would be, based on existing activity levels, the inability of the Airport to
retire the $1.3 million debt to other City funds.

The City has attempted to interest a fixed base operator in operating and maintaining
the Airport but so far without success. There were no responses to the 2011 Request
for Proposals for a Non-Exclusive Fixed Base Operator.

The current level and type of aviation activity (e.g., based aircraft, aircraft operations
and jet fuel) at the Airport may not be attractive to a contract management firm.
Airport facilities, e.g., runway length, are also a consideration.
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Section 7
ALTERNATIVE 5 -- COUNTY OF SOLANO
7.1
INTRODUCTION
The operation and maintenance, and in most instances, the ownership, of more than one
airport is considered a system of airports that address the goals for air transportation on a
regional level. A system of airports can be a city, county or state with two or more
airports, and in the case of the Federal Aviation Administration (FAA), the National Plan
of Integrated Airport Systems that includes 3,400 existing and proposed airports that are
considered significant to the national air transportation system. In addition, there are
instances where one public agency has owned an airport while a different public agency
has been responsible for the maintenance and operation of the airport.
7.2
SOLANO COUNTY
The County of Solano owns and operates the Nut Tree Airport, a County-owned, publicuse airport located within the County and about 16 nautical miles from the Rio Vista
Municipal Airport. The management and operation of the Nut Tree Airport is under the
County’s General Services Department. In 2008 the then Rio Vista City Manager entered
into discussions with representatives of Solano County to assume the management and
operation of the Rio Vista Municipal Airport. The County declined further discussions
with the City due to other County priorities at that time.
Under this alternative, the County could assume the management and operation of the
Rio Vista Municipal Airport into the overall management and operation of the Nut Tree
Airport. The advantages to the City of this type of arrangement would be the
consolidation of the administrative responsibilities and expenses of the City with those of
the County. This could result in staff and cost savings to both the City and the County.
Under this arrangement the County would be responsible for the day-to-day operation
and maintenance of the Airport with County staff. The City would enter into a financial
arrangement/cost of services/contract management agreement with the County on a
monthly or annual basis similar to one that might be negotiated with a private
operator/fixed base operator. This arrangement could include the County providing
aircraft fueling, collecting aircraft hangar and tiedown payments and other rents. The
City would retain ownership of the Airport and be responsible for complying with FAA
grant assurances and regulations, surrounding land use controls and future FAA Airport
Improvement Program funded projects.
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At the other end of the scale, the City could negotiate a long-term lease or transfer of the
Airport to the County. The County would then be responsible for the ownership as well
as the operation and maintenance of the Airport. The County would then be responsible
for complying with the FAA grant assurances and regulations, surrounding land use
compatibility and future development of the Airport.
7.3
PUBLIC AGENCY CONTRACT AGREEMENTS
The City of Palo Alto and County of Santa Clara are in the process of ending a 50-year
lease from the City to the County for the Palo Alto Airport signed in 1967. The County
leased the land for improvement, maintenance and operation as an airport and airport
facilities. The County operated the airport in compliance with FAA Regulations, and the
County had full power, authority and responsibility in regard to the operation,
management and maintenance of the airport as though the County were the sole owner
thereof. Control of the airport operation and management will now revert to the City.
During the term of the 50-year lease, the County was also responsible for applying for
and administering FAA Airport Improvement Program grants, complying with FAA
grant assurances and Federal Aviation Regulations (FAR) Part 77 imaginary surfaces and
easements. However, the City did have approval rights for potential development
projects on the Airport.
In Alaska, the Ketchikan Gateway Borough has a long-term lease to maintain and operate
the Ketchikan International Airport while the Airport is owned by the State of Alaska.
The Borough has shown interest over the years in acquiring ownership of the Airport.
7.4
SUMMARY
The summary of entering into an operating agreement with Solano County alternative is
as follows:

If the County was responsible for the maintenance and operation of the Airport, there
could be financial advantages to both the City and the County.

If the County obtained control of the Airport, as well as being responsible for the
maintenance and operation, the County would have the County of Solano System of
Airports. While it may not make much of a difference in how the two airports are
managed in terms of costs, e.g., economies of scale operating two airports with one
administration and staff, a system of airports is eligible for FAA funding for system
planning, airport master plans, use of FAA Airport Improvement Program funds at
either airport, etc.
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
The County would continue to be eligible to receive Caltrans grants and loans.

The City would still be responsible for any debts owed to other City funds.

At this time, it is not clear whether there is any interest from either the City and/or the
County in further discussions on this alternative.
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Section 8
ALTERNATIVE 6 -- CLOSE THE AIRPORT
8.1
INTRODUCTION
This alternative assumes the closure of the Airport and any required reimbursement of
any loans or grants to City, Federal Aviation Administration (FAA), State and any other
accounts. It is assumed the Airport land will be used for nonaviation purposes after the
closure.
The closure of a publicly-owned airport is a difficult and expensive process as other
public entities have found out in recent years. The FAA will not allow an airport that has
accepted federal funds to close only for economic reasons. In order for the FAA to
sanction the closure of an airport, the public owner must demonstrate that civil aviation
will benefit from the closure, generally through the construction of a replacement airport.
8.2
AIRPORT CLOSURES
This section summarizes some airport closures, and attempts to close an airport, in recent
years.
8.2.1
Rialto Municipal Airport
It took an Act of Congress in 2005 to allow the Rialto Municipal Airport in Southern
California to close. The 434-acre airport property will be redeveloped as part of a large
residential and business center. The Airport closed in September 2014. Some airport
tenants and facilities have been, or will be, relocated or rebuilt at other nearby airports,
e.g., San Bernardino International, Riverside Municipal, Flabob, Cable, Redlands and
Hemet Airports. The City of Rialto will have spent over $30 million moving airport
tenants.
The Congressional legislation authorized the closure of the Rialto Municipal Airport, the
transfer of certain assets of the Rialto Municipal Airport (to the San Bernardino
International Airport), the sale of Rialto Municipal Airport properties by the City of
Rialto and the distribution of 45 percent of the fair market value of the local land sales
proceeds to the United States for the benefit of a commercial service airport (San
Bernardino International Airport 9 miles away and owned by a different airport sponsor)
thereby complying with the criteria set forth in the legislation (See Federal Register
Volume 73, Number 162, August 20, 2008).
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The City of Rialto fronted the City share of the costs and will recapture these expenses
from the City share of the sale of the airport properties. The future private developer has
paid some of the relocation costs and will be reimbursed from the City through the sale of
airport land.
The only FAA obligation was the requirement to retain the Airport land in perpetuity
which necessitated the Congressional Legislation to close the Airport. There was no
requirement for reimbursement of any FAA Airport Improvement Program or State of
California, Division of Aeronautics (Caltrans) grants.
8.2.2
St. Clair Regional Airport
A bill was introduced in the U.S. Senate in 2014 to close the St. Clair Regional Airport
near St. Louis, Missouri. The bill was passed by both the U.S. Senate and U.S. House of
Representatives in identical form and was signed by the President in December 2014 to
become law. The bill releases the City of St. Clair from all restrictions, conditions and
limitations on the use, encumbrance, conveyance and closure of the Airport.
The City of St. Clair had been trying to close the airport for several years. It needed
permission from the FAA, or passage of the bill, because the airport had obtained federal
improvement grants up to 2006. The U.S. Senate bill supersedes any FAA decision as it
has been passed and signed into law. The City wants to use the land for retail
development. The Missouri Department of Transportation had stated it does not oppose
closure.
Previously, the Airport Owners and Pilots Association (AOPA), General Aviation
Manufacturers Association (GAMA), National Business Aviation Association and
National Air Transportation Association (NATA) had urged U.S. Senate members to
forego legislation to close the Airport and instead follow FAA procedures for potential
closure of airports that have received federal funding.
8.2.3
Blue Ash Airport
The Blue Ash Airport in Cincinnati, Ohio, closed in August 2012 after a five-year battle
between the City and airport users. Blue Ash Airport had not received any FAA Airport
Improvement Program grants in years which permitted the owners (Cities of Cincinnati
and Blue Ash) to close the airport without opposition from the FAA. The federal grant
agreements had expired so the FAA had no legal authority to force the City to keep the
airport open. Part of the airport will be redeveloped for a park and golf course.
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8.2.4
Blaine Municipal Airport
The Blaine Municipal Airport, Washington, closed in December 2008. There were no
outstanding federal grants. It cost $1 to $4 million to close the Airport. The land is now
used for the Gateway Business Park retail commercial and light manufacturing
development.
8.2.5
Other Airports
Other publicly-owned general aviation airports that have closed in recent years include
Atlantic City/Buder Field, New Jersey, in 2006; Meigs Field, Chicago, Illinois in 2013;
and Vista Field, Kennewick, Washington in 2014. The Atwater Municipal Airport closed
in connection with the closure of nearby Castle Air Force Base and its reopening as the
publicly-owned Castle Airport.
Other publicly-owned airports that have considered closure in recent years but have been
denied or discouraged by FAA, state, aviation users and other opposition include Lorrain
County, Ohio; Bakersfield Municipal, California; Allentown Queen City Municipal
Airport and Braden Airpark, Pennsylvania; and Kentland, Indiana.
There is an ongoing dispute between the FAA and City of Santa Monica on the future, or
closure, of the Santa Monica Municipal Airport, California. This includes litigation and
recent ballot initiatives on the future of the airport.
8.3
AIRPORT CLOSURE ISSUES
A common issue at many of these publicly-owned airports that have been considered for
closure is the acceptance and obligations associated with FAA Airport Improvement
Program grants. If the airport sponsor accepts an Airport Improvement Program grant,
then the FAA requires a 20-year useful life for the capital improvements. If the airport
sponsor accepts an FAA grant to purchase property for the airport, then the property must
always be used in perpetuity for airport purposes or until FAA releases the airport
sponsor from that obligation. In accepting FAA Airport Improvement Program grants,
the airport sponsor has agreed to specific federal obligations including the commitment to
keep the airport open and make it available for public use as an airport. The City of Rio
Vista has accepted FAA Airport Improvement Program grants for both capital
improvements and land acquisition.
The FAA specifies that the airport sponsor must comply with all federal obligations set
forth under the FAA Airport Improvement Program agreements, and the FAA also
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stipulates that all airport revenue (including proceeds from the sale of any airport
property) be invested in a replacement airport, reinvested in FAA AIP-eligible projects or
returned to the FAA aviation trust fund.
Under most conditions, FAA AIP grants have a useful life of 20 years from the date of
the last grant the airport sponsor received. However, FAA AIP grants for the acquisition
of land do not have an expiration date, they go on in perpetuity. FAA also stipulates that
all airport revenues, including proceeds from the sale of any airport property, be
reinvested in a replacement airport, reinvested in FAA AIP-eligible projects or returned
to the FAA aviation trust fund.
If the City threatened to close the Airport, the FAA could take action by filing an FAR
Part 16 Rules of Practice for Federally-Assisted Airport Enforcement Proceedings
complaint. There would be a final Determination on the Compliance issue. The Final
Determination would have to be appealed to the FAA Administrator at FAA
Headquarters. The City could take civil action and appeal to the Federal courts.
If the FAA prevails, and the Airport property itself is taken back by the FAA, the
property could be turned over to the General Services Administration (GSA). The GSA
would then be responsible for using the land, e.g., for a federal prison, or selling the
property at fair market value. Without the proper notification of closure, a $10,000 daily
civil penalty would be imposed under U.S. Code 46319 Permanent Closure of An Airport
without Providing Sufficient Notice.
8.4
SUMMARY
The summary of closing the Airport alternative is as follows:

The City of Rio Vista accepted FAA Airport Improvement Program grants for
acquisition of about 182 acres of the Airport land in perpetuity for the new airport in
1989. Therefore, if the Airport were closed, about 182 acres of the Airport property
could revert back to the FAA for disposal by the General Services Administration.

The City has continued to accept FAA Airport Improvement Program funds for
airport improvements at the new airport. The most recent Airport Improvement
Program grant was received by the City in 2014 with a continuing FAA obligation to
keep the Airport open through 2034. Based on a review of FAA grants over the past
20 years, the City could have to refund all, or part of, the $1.6 million in grants
received since 1994 (See Table 2-1).
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
Because some of the Airport land was acquired with FAA funding, this obligation
runs in perpetuity unless FAA releases the City from that obligation, which rarely
happens.

The City could also have to refund all, or part of, the $463,000 in grants received
from Caltrans since 1998 (See Table 2-2).

Recent closures of publicly-owned airports have required Acts of Congress that
supersede FAA decisions.

In order to close the Airport, the City must show that civil aviation will benefit,
typically by providing a new replacement airport equal to or greater than the existing
Rio Vista Municipal Airport.

Any attempt to close the Airport will be opposed by various pilot and aviation groups
including the California Pilots Association (CPA), Aircraft Owners and Pilots
Association (AOPA), National Business Aviation Association (NBAA), General
Aviation Manufacturers Association (GAMA) and National Air Transportation
Association (NATA). The closure would be opposed on the grounds of its adverse
impact of limiting access to general aviation and losing an important community asset
that is impossible to replace.
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Section 9
ALTERNATIVE 7 -- PORT AUTHORITY
9.1
INTRODUCTION
A Port Authority in the State of California is a public benefit corporation created by
enabling legislation under several California codes. The “Port” includes tidelands and
lands lying under inland navigable waters maintained and managed by the California
State Lands Commission. The States Land Commission has jurisdiction and management
control over certain public lands that were received from the United States in 1850 when
California became a State. The management and protection of tidelands and lands lying
under inland navigable waters in the State would be transferred from the States Land
Commission to a Port Authority created in the legislation.
9.2
PORT AUTHORITY
While port authority powers vary widely, all share the common purpose of serving the
public interest of a state, region or locality. Port authorities are typically empowered to
exercise the powers of eminent domain, to conduct studies and develop plans, levy
facility charges, issue bonds, to sue and be sued, to apply for federal grants, to act as the
local public assurance for federal navigation projects and to enter into contracts and
agreements. Many authorities are given police powers, the power to exercise regulatory
powers, such as the enforcement of local or state environmental and land use regulations,
and the right to manage submerged or tidal lands within the port’s jurisdiction.
The new Port Authority would be created under State of California Legislation as an
autonomous self-governing entity. Legislation will be required to form a Port Authority
specific to Rio Vista. The legislation will be very specific as to the formation of the
Authority, including but not limited to, the following:








Territories under jurisdiction, including any unincorporated territory(s)
Election proceedings
Transfer of lands and facilities, including tidelands and submerged lands, in trust to
the Authority
Government of Port, including how commissioners are selected
Meeting rules and regulations
Levy and collection of taxes
Financial structure
Reversion of land and powers on dissolution of the Authority, among others.
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There are 11 publicly-owned commercial port authorities in the State of California, but
only the Port of Oakland has an airport (Metropolitan Oakland International Airport)
within its jurisdictional responsibilities. The San Diego International Airport was owned
by the San Diego Port District but was transferred to the San Diego County Regional
Airport Authority in 2003.
9.3
FORMATION OF THE PORT AUTHORITY OF RIO VISTA
The on-going RioVISION project has recommended initiation of the creation of a Rio
Vista Port Authority as one of the Medium Term Recommendations. The Port of Rio
Vista, as envisioned in the RioVISION project, would include the industries located on
the waterfront north of the State Highway 12 Bridge, the underdeveloped waterfront
downtown, and the Rio Vista Municipal Airport, and could greatly benefit the City based
on the following assumptions.
The Rio Vista Municipal Airport in its entirety, including all the land, buildings,
improvements, leases and agreements, and debt would be conveyed to the Port Authority
of Rio Vista. Under this scenario, the City would no longer be responsible for the
Airport. The Port Authority would be responsible for the continued maintenance and
operation of the Airport including retiring any debt to the City as provided for in the
Legislation.
The Port Authority of Rio Vista will be a new autonomous entity established to provide
for the calling of elections for; describing the powers, duties and functions of; authorizing
the Authority to borrow money and issue bonds; providing means of raising revenues for
the operation and maintenance and debt retirement of the Authority; and providing for the
transfer of tidelands and lands lying under inland navigable waters.
Preliminary meetings would be scheduled with all those interested in investigating the
formation of a Port Authority. This would include, but not be limited to, representatives
of the participating entities, e.g., City of Rio Vista, the County of Solano and any
unincorporated communities. Other interested persons and entities having an interest in
furthering a Port Authority should also be included.
Based on discussions with City representatives, inquiries have been received by several
persons and entities, including proponents for the Rio Vista Business Park and Rio Vista
Army Base, expressing an interest in the formation of a Port Authority and should be
included in the preliminary meetings.
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A Port Authority Committee would be formed to be responsible for fielding questions
and concerns, disseminating information, scheduling and noticing of meetings, and
drafting proposed legislation based on information, suggestions, concurrence and
comments as a result of the meetings.
9.4
SUMMARY
The summary of transferring the Airport to a Port Authority alternative is as follows:

The Rio Vista Municipal Airport could benefit through the transfer of the Airport’s in
its entirety, including land, buildings, improvements, leases and agreements and debt,
to an autonomous Port Authority serving as a public benefit corporation for other
entities.

The Port Authority creation could have the same powers and rights and would assume
the same obligations of the City of Rio Vista with regard to federal and State grants
and loans.

The Port Authority would be eligible for future FAA and Caltrans grants.

Prior approval of the transfer of ownership would be required from the FAA and
Caltrans, Division of Aeronautics. It is not anticipated that this approval would be
denied, however, it would be advisable for the City to have a representative
experienced in aviation-related issues on the Committee investigating the feasibility
of a Port Authority to ascertain that all the rights and powers inherent to an Airport
are included in any proposed legislation.

The City of Rio Vista would no longer have governing authority or control of the
future development and enhancement of the Airport facilities and services.

The concept of the formation of a Port Authority of Rio Vista has been proposed in
recent years. Based on discussions with representatives of the City, interest has been
shown by several persons and entities, including proponents for the Rio Vista
Business Park and Rio Vista Army Base, expressing an interest in the formation of a
Port Authority. The Port Authority alternative outlines a Port Authority under
enabling legislation and how the Airport could be included. It does not include other
facilities and services that would be eligible to be included in a public trust
corporation such as a Port Authority. The City would need to take the initiative to
begin the investigation into the formation of a Port Authority to ascertain the interest
and potential participation by others.
Rio Vista Municipal Airport
Potential Alternatives for the Future Ownership, Operation and Maintenance of the Airport
9-3