From the Los Angeles Times, May 28, 2000
Not for reprinting without permission of the Times


 Monday, May 29, 2000
El Toro Spending: Was It Worth It?

                                            Proponents insist that the $35 million spent so far on
                                         planning is a small price to pay for a potentially big
                                         moneymaker. But one critic says the funds merely 'keep a
                                         standing army of consultants on hand to push an airport
                                         agenda.'

                                         By MEG JAMES, JEAN O. PASCO, Times Staff Writers
 

                                              After spending six years and $35 million planning for a
                                         commercial airport at the former El Toro Marine Corps Air
                                         Station, Orange County has a wealth of reports and studies
                                         on a project whose future is deeply in doubt. El Toro
                                         spending accelerated during the past year even as public
                                         support for the airport began to sour, financial records and
                                         a recent UC Irvine opinion poll show.
                                              "I can't believe that we've spent the time, effort and
                                         money to do this planning process and we don't have
                                         anything to show for it," Supervisor Tom Wilson said
                                         Thursday.
                                              "The folks out there watching . . . see this process that
                                         is running amok, with the county throwing good money
                                         after bad," said Wilson, who opposes an airport at El Toro.

                                              El Toro planning manager Bryan Speegle defended the
                                         spending as a wise investment, saying the $35 million
                                         should be weighed against the ultimate value of the land,
                                         which is about $3.5 billion.
                                              "I don't think 1% of the value of the property is an
                                         unreasonable amount of money to spend to bring a project
                                         from its beginning to where we're ready to begin
                                         construction," Speegle said.
                                              The spending has not attracted much public attention
                                         because of the source of the funds. County officials have,
                                         for the most part, avoided using general tax dollars.
                                         Instead, $27 million in excess revenue from John Wayne
                                         Airport has financed most of the planning process, sparing
                                         funds set aside for other county programs.
                                              Some critics worry that Orange County taxpayers still
                                         could get hit with the tab, however.
                                              Top county leaders said recently that it's possible the
                                         county might have to repay some or all of the John Wayne
                                         Airport money if the El Toro airport planning is abandoned
                                         before its environmental review is approved.
                                              "That's the big unanswered question," County
                                         Executive Officer Jan Mittermeier said recently.
                                              No matter where the $35 million came from, the
                                         county's decision to spend that much on an airport mired
                                         in controversy was foolhardy, said Bruce Whitaker, a
                                         member of the Committees of Correspondence, which
                                         began monitoring Orange County government after the
                                         1994 bankruptcy.
                                              "The airport has been such a burning priority for [the
                                         board majority] that they're blinded to any cost," said
                                         Whitaker, who manages a medical office in Anaheim. "We
                                         should decry this waste of money just to keep a standing
                                         army of consultants on hand to push an airport agenda."
                                              Supervisors on both sides of the El Toro debate have
                                         grown increasingly unhappy with how the airport issue has
                                         been handled. Last week, they voted unanimously to strip
                                         Mittermeier of her oversight responsibilities and establish a
                                         new El Toro planning office.
                                              "There has to be better day-to-day management to keep
                                         the project on time, on schedule and to deliver a project
                                         that will withstand a predictable court challenge," said
                                         Bruce Nestande, president of Citizens for Jobs and the
                                         Economy, a pro-airport group.
                                              In addition, the supervisors have ordered an audit to
                                         determine how Mittermeier's staff uses funds from John
                                         Wayne Airport to pay for El Toro planning. The amount of
                                         money diverted from John Wayne has nearly doubled in
                                         the past year, from $14 million to $27 million.
                                              Critics questioned whether John Wayne Airport money
                                         was inappropriately used to cover more than $800,000 in
                                         salaries for administrators overseeing recreation programs
                                         at the former military base. The programs had nothing to
                                         do with the future airport.
                                              "As long as it's master-planned for an airport, and
                                         we're trying to make that happen, I don't have a problem
                                         with that," board Chairman Chuck Smith said of the
                                         recreation spending. "If the FAA says there's a problem, I
                                         guess we'll just have to pay back the money."
                                              Mittermeier said she welcomed the review.
                                              "County staff has worked diligently to ensure that
                                         payment procedures and funding requirements with regard
                                         to the El Toro account are strictly adhered to," she said in
                                         a memo defending the spending.
                                              In addition to the millions from John Wayne Airport,
                                         the county spent $3 million from a federal grant. Federal
                                         rules require that airport money be spent "directly and
                                         substantially related to the air transportation of passengers
                                         or property."
                                              Meanwhile, South County cities spent nearly $22
                                         million in the past three years--and will spend at least $10
                                         million more this fiscal year--fighting the airport. All of the
                                         money is from general tax revenue.
                                              South County officials have defended their spending,
                                         saying they are fighting for their quality of life.
                                              During the past three years, the county's big-ticket El
                                         Toro expenses have included:
                                              * $9.4 million for P&D Consultants of Orange for
                                         developing a master plan for the new airport and
                                         associated development.
                                              * Nearly $4 million for lawyers, including $2.2 million
                                         for Michael Gatzke, and more than half a million dollars to
                                         the county counsel's office.
                                              * $3.1 million for the Planning Center and its
                                         subcontractors, which has worked on a required
                                         environmental review of the project. The Costa Mesa firm
                                         has been working on airport landscape plans, business
                                         park designs, road configurations, open space plans and
                                         other support services.
                                              * More than $4 million for the "base transition plan"
                                         and interim base uses, including $1.5 million for Orange
                                         County fire service during the past 10 months.
                                              * $2.6 million for LSA Associates of Irvine, which has
                                         more than 21 staff members working on the environmental
                                         review and other technical reports.
                                              * $1.4 million to cover staff time for project
                                         management within Mittermeier's office.
                                                            * * *
                                              Airport supporters and county officials defend the
                                         costs. They say an airport at El Toro is essential to meet
                                         the growing demand for air travel and for Orange County's
                                         economic growth.
                                              Backed by a successful voter initiative in 1994, the
                                         county's airport plan calls for 2,000 acres of the
                                         4,700-acre base to be used for the airfield, serving as
                                         many as 28.8 million passengers a year by 2020. The rest
                                         of the land is slated for a large regional park.
                                              "This is a one-time massive infrastructure project, and
                                         there is nothing to compare it to," Nestande said. "But
                                         some of the costs have been driven by the intense daily
                                         scrutiny, accusations and misstatements coming from
                                         [anti-airport cities], anti-airport people."
                                              Others say the county's problems are more
                                         fundamental.
                                              "They've spent nearly $40 million and even the
                                         pro-airport supporters say that their plan for an airport
                                         won't work," said Paul Eckles, executive director of the
                                         anti-airport El Toro Reuse Planning Authority, an eight-city
                                         coalition.
                                              "It's not possible to have a workable airport on that
                                         piece of property that is safe for the surrounding
                                         communities, economically feasible and politically and
                                         environmentally viable."
 
                                                            * * *
 

                                              El Toro Planning Costs
                                              Since 1993 Orange County has spent about $35 million
                                         planning for the reuse of the former El Toro Marine base.
                                         Of that amount, $27 million has come from John Wayne
                                         Airport revenue, $3 million from a federal grant and the
                                         rest from general tax dollars. In July 1997, the county
                                         created a separate account for El Toro expenditures. Here
                                         are some of the larger payments from July 1997-April 15,
                                         2000:
                                              Program Administration
                                              County planners (salaries): $1.5 million
                                              CEO's office (salaries): $1.4 million
                                              Bruce Wetsel (consultant): $294,671
                                              Michael Lapin (program mgr): $153,440
                                              Hanscomb Inc. (consultant): $17,084
                                              TOTAL:: $3.4 million
                                                            * * *
                                              Planning and engineering
                                              P&D Consultants (master plan): $9.4 million
                                              The Planning Center (consult.): $3.1 million
                                              LSA Associates (consultants): $2.6 million
                                              JHTM Associates (consultants): $192,883
                                              County planners (salaries): $162,607
                                              Austin Foust (consultants): $20,202
                                              El Toro Reuse Planning Authority: $20,000
                                              Mestre Greve (noise engineers): $19,476
                                              Jones & Stokes (consultant): $10,016
                                              TOTAL:: $15.6 million
                                                            * * *
                                              Lawyers
                                              Michael Gatzke (general): $2.2 million
                                              County counsel (salaries): $588,904
                                              McCutcheon, Doyle (environ.): $571,770
                                              Mark Mispagel (general): $552,255
                                              TOTAL:: $3.9 million
                                                            * * *
                                              Public Relations / Education /
                                              Cable Television programs
                                              Nelson Comm. (advertising): $325,161
                                              Adlink (advertising): $145,378
                                              Lynette Brasfield (public rel.): $128,923
                                              Burson Marsteller (public rel.): $113,744
                                              OC Regional Airport Authority: $58,666
                                              Thomas Wall (speakers bureau): $55,000
                                              Intratek (computer Website): $42,768
                                              Time Warner (cable): $24,450
                                              Patricia Buttress (speakers bureau): $13,809
                                              TOTAL:: $907,899
                                                            * * *
                                              Lobbyists
                                              Hill & Knowlton: $180,000
                                              Higgins, McGovern & Smith: $85,275
                                              TOTAL: $265,275
                                                            * * *
                                              Base Transition / Recreation programs
                                              * Cabaco (base manager): $4.8 million
                                              Orange County Fire Authority: $1.4 million
                                              Gary Simon (real estate manager): $450,319
                                              Orange County Sheriff's Dept.: $207,523
                                              Richard Thorman (golf consultant): $44,588
                                              Dean Tibbs (electrical consultant): $22,853
                                              Reimer & Assoc. (utility consult): $14,999
                                              TOTAL:: $7 million
                                                            * * *
                                              Flight Demonstration
                                              TOTAL:: $892,555
                                                            * * *
                                              Misc. Office expenses
                                              Office expenses: $337,921
                                              Telephone, utilities: $52,981
                                              HL Miller (office renovations): $39,802
                                              Ron Yeo (architect, office improvements): $9,019
                                              TOTAL:: $439,723
                                                            * * *
                                              Travel, Meetings, Conferences
                                              TOTAL:: $94,674
                                              Misc. contractors
                                              Rosenow, Spevacek (homeless/housing study):
                                         $10,076
                                              * Cabaco's payments are offset by $2.2 million in
                                         revenue the company collected running the RV storage lot,
                                         golf course and horse stables. .
                                              Source: Orange County Auditor-Controller's Office
                                              Los Angeles Times