Transportation Agency Moves on O.C. Airport Plan

The Orange County Transportation Authority moved ahead with a plan Monday to acquire John Wayne Airport and secure airport development rights at the El Toro Marine Corps Air Station, despite criticism from Supervisor Marian Bergeson that the venture does nothing to help the bankrupt county.

Suggestions that Orange County divest itself of John Wayne Airport have surfaced from time to time over the past three years, but the proposal has taken on greater urgency as the county scrambles for ways to bail itself out of bankruptcy.

Supervisor Roger R. Stanton said it’s time for a definitive report on whether federal aviation restrictions will keep the plan forever grounded.

“Let’s end the debate and decide once and for all whether this is doable,” said Stanton.

OCTA directors voted 10 to 1 to conduct a $50,000, in-depth analysis over the next three months. Bergeson cast the only no vote, saying there is little hope that the transfer of the county’s aviation rights could result in a quick infusion of cash for the bankrupt county.

“I can’t see where it would bring any more money into the general fund in the near future, and that’s what we need to do,” said Bergeson, who sits on OCTA’s board of directors along with Stanton and Supervisors Jim Silva and William G. Steiner.

Bergeson added that she is also concerned that expanding OCTA’s authority to include air transportation could turn it into a “super agency” with little public accountability.

The vote to explore the possibility of consolidating aviation operations under OCTA was not without conditions.

Stan Oftelie, the agency’s chief executive, said, “We don’t want to spend the money, the time and the effort” if the county Board of Supervisors was not a willing seller.

Even though three of the five supervisors, wearing their OCTA board member hats, voted in favor of Monday’s resolution, the county’s willingness is not necessarily a foregone conclusion, because Silva has a rival plan to divert OCTA funds to the county while giving virtually nothing in return.

The biggest obstacles to an airport transfer appear to be federal aviation regulations that require all airport revenue--presumably including the proceeds of any airport sale--to be spent exclusively for airport operations and improvements.

To get around the regulations, an OCTA staff report recommends a new and novel approach: Purchase future development rights for a proposed airport at the El Toro Marine Corps Air Station, and in the process assume operational control of--but not buy outright--John Wayne Airport.

OCTA still needs to figure out how it would pay the county an estimated $350 million for aviation development rights at El Toro, but some suggestions involved forgiving the more than $200 million the county owes to the transportation agency for losses suffered by the Orange County investment pool.

Like roughly 200 cities, schools and other government agencies, OCTA had millions entangled in the investment pool, which lost $1.7 billion and plunged the county into bankruptcy, when former Treasurer-Tax Collector Robert L. Citron’s interest rates bets proved wrong.

OCTA officials also discussed the possibility of dipping into the revenues--or extending the life--of Measure M, the half-percent sales tax voters approved in 1990 solely for transportation improvements.

OCTA officials pointed to two surveys showing that a majority of voters would be willing to extend the life of the increased sales tax to 2011.

Coming just two weeks after voters overwhelmingly rejected Measure R--a half-percent sales tax increase to help the county out of bankruptcy--some board members expressed grave doubts about the accuracy of such surveys.

“Who did these polls?” asked a surprised Silva.

“Someone on Mars,” quipped Steiner.

Silva offered only qualified support to the proposal. He has his own plan to help capture nearly $340 million in Measure M funds earmarked for commuter rail projects, and said he would withhold support from the airport plan if his proposal meets with greater acceptance.

“The race is on,” Silva said.

The report is but the latest of several to highlight obstacles to an airport sale or transfer. While Orange County representatives in Congress have offered to help carry legislation that might eliminate such obstacles, the board of directors were put on alert Monday that they may also face lawsuits.

“We’ll challenge you every step of the way,” said John Ek, spokesman for the Air Transport Assn., which represents nearly all of the airlines providing service to John Wayne Airport. During a heated exchange, Ek accused transportation officials of disregarding airport interests to bail out a bankrupt county.

“You’re wrong,” admonished Stanton, who said he has been interested in selling off one of the county’s most lucrative assets for years.

After the meeting, OCTA Board Chairman Charles V. Smith also disputed suggestions that the transportation agency--which is barred from making outright financial gifts to the county--is searching for ways to funnel cash the county’s way.

“People are accusing us of doing all this to help the county, but we’re looking at this from a transportation point of view, and if there’s a fallout for the county, then fine,” he said.

Smith said OCTA officials are interested in taking over the airport to help coordinate transportation across the county.