· In May of 2000, the Mayor designated a Director of Airfield Development to manage the Airfield Development Bureau and serve as a direct liaison with the Mayor's Office. The Director of Airfield Development reported to the Mayor, but also coordinated with and provided regular reports to both the Airport Director and the Airport Commission.

· The Airfield Development Bureau's organizational structure and scope of work were significantly reduced after September 11, 2001. The Airfield Development Bureau's work is now focused on the completion of the draft EIR/EIS documents and all efforts not directly related to the EIR/EIS documents have been suspended. Further, the operational and organizational structure changes have been accompanied by recent departures of the top management of the Airfield Development Bureau.

· The top two positions in the Airfield Development Bureau are currently vacant: the most recent incumbent who had occupied the Deputy Airport Director position retired in March of 2003, and the Airfield Development Director resigned that position effective April 11, 2003. Effective April 14, 2003, the Airport Director consolidated the Bureau of Design and Construction, the Bureau of Planning and Environmental Affairs, and the Airfield Development Bureau into a single "Airport Development Division," managed by the current Bureau of Design and Construction Manager, pending the completion of an overall Airport reorganization plan due to be completed by July of 2003.

· The Airfield Development Bureau is currently authorized a total of 39 FTE positions, although only nine of those positions are currently filled. If the Board of Supervisors authorizes the work of the Airfield Development Bureau to continue in FY 2003-04, the Budget Analyst estimates potential staff savings of $451,362 annually from reducing current staffing from nine positions to four positions through this organizational change, recommended by the Budget Analyst.

Runway Reconfiguration Program Background

The Airport Commission initiated a Runway Reconfiguration Feasibility Study and Plan in 1998 in order to evaluate the feasibility of reconfiguring the existing runways to reduce delays due to inclement weather, accommodate new large aircraft, and reduce noise impacts on surrounding communities. The Study consultant, URS Greiner, published a Runway Reconfiguration Feasibility Study and Plan, Final Report, in March of 1999, which included alternative runway configurations that required construction in the San Francisco Bay.

The "Airfield Development Program" was formally established effective March 22, 1999, and assigned the following mission:

to plan, design and develop an approved reconfigured runway system and necessary airside support facilities to satisfy the aviation, economic, environmental and public service demands of the San Francisco Bay Region.

The Bureau of Design and Construction has previously managed major projects at the Airport including the development of the International Terminal, the AirTrain System, and the Parking Garages/Rental Car Facility under the Near Term Master Plan. However, the Airfield Development Bureau was established outside of the Bureau of Design and Construction to manage the Runway Reconfiguration Program.

Airfield Development Bureau Organization and Expenditures

The Airport's FY 1999-2000 Budget included a total of nine fulltime positions (6.0 FTE) and 2.13 Temporary Positions as shown in Table 7.1 below. Table 7.1 also shows that personnel expenditures from Program inception in March of 1999 through FY 1999-2000 (June of 2000) were $1,900,224.

According to Airfield Development Bureau senior staff, the operational objectives of the Runway Reconfiguration Program evolved into planning and building a runway configuration by 2007 that achieved the following objectives:

· Eliminate delays

· Abate noise

· Accommodate new large aircraft

· Provide a net environmental gain

Table 7.1
Runway Reconfiguration Personnel Expenditures
and Authorized Positions By Program

The buildup of authorized FTE positions to accomplish those objectives is also shown in Table 7.1, above. Currently, nine of the 39.0 authorized positions are filled.

In May of 2000, the Mayor designated a Director of Airfield Development to manage the Airfield Development Bureau and serve as a direct liaison with the Mayor's Office. The Director of Airfield Development reported to the Mayor, but also coordinated with and provided regular reports to the Airport Director and the Airport Commission.

Current Mission and Proposed Organization

The Airfield Development Bureau's organizational structure and scope of work were significantly reduced after September 11, 2001. The Airfield Development Bureau's work is now focused on the completion of the draft EIR/EIS documents and all work not directly related to the EIR/EIS documents have been suspended. Further, the operational and organizational structure changes within the Airfield Development Bureau have been accompanied by the recent departures of the Bureau's top two managers, leaving vacancies in those positions. The most recent incumbent who had occupied the Deputy Airport Director position shown in Exhibit 7.1, the Airfield Development Bureau's current organizational chart, retired in March of 2003, and the Airfield Development Director resigned effective April 11, 2003. Effective April 14, 2003, the Airport Director consolidated the Bureau of Design and Construction, the Bureau of Planning and Environmental Affairs, and the Airfield Development Bureau into a single "Airport Development Division," managed by the current Bureau of Design and Construction Manager, pending the completion of an overall Airport reorganization plan due to be completed by July of 2003.

In the professional opinion of the Budget Analyst, the Runway Reconfiguration Program should be absorbed by the Bureau of Design and Construction. Recent discussions with the Bureau of Design and Construction Manager indicate that the Bureau could manage the EIR/EIS phase of the Program by incorporating four current Airfield Development Bureau positions into the Bureau of Design and Construction, which would reduce the authorized salary budget by $3,153,968, from $3,498,356 for 39 authorized positions to approximately $344,388 for four authorized positions. Savings from eliminating five of the nine currently filled positions would be approximately $451,632, from $796,020 in current salaries and benefits to $344,388.

If the Runway Reconfiguration Program moves into a construction phase, the BDC has the required expertise to manage a very large and multi-phased construction project. The Budget Analyst will review the proposed staffing arrangement during the review of the Airport's FY 2003-04 Budget.

Conclusion

In May of 2000, the Mayor designated a Director of Airfield Development to manage the Airfield Development Bureau and serve as a direct liaison with the Mayor's Office. The Director of Airfield Development reported to the Mayor, but also coordinated with and provided regular reports to the Airport Director and the Airport Commission.

The Airfield Development Bureau's organizational structure and scope of work were significantly reduced after September 11, 2001. The focus of Airfield Development Bureau's work is now the completion of the draft EIR/EIS documents and all efforts not directly related to the EIR/EIS documents have been suspended. Further, the operational and organizational structure changes have been accompanied by recent departures of the top management of the Airfield Development Bureau.

The top two positions in the Airfield Development Bureau are currently vacant: the most recent incumbent who had occupied the Deputy Airport Director position shown in Exhibit 7.1, the Airfield Development Bureau's current organizational chart, retired in March of 2003, and the Airfield Development Director resigned effective April 11, 2003. Effective April 14, 2003, the Airport Director consolidated the Bureau of Design and Construction, the Bureau of Planning and Environmental Affairs, and the Airfield Development Bureau into a single "Airport Development Division," managed by the current Bureau of Design and Construction Manager, pending the completion of an overall Airport reorganization plan due to be completed by July of 2003.

The Airfield Development Bureau is currently authorized a total of 39 FTE positions, although only nine of those positions are currently filled. The Budget Analyst will work with Airport budget and management staff during our review of the Mayor's FY 2003-2004 budget request to the Board of Supervisors to determine which, if any, Airfield Development Bureau staff positions should be retained in the Airport's staffing structure.

Recommendation

The Airport Director should:

2.1 Work with the Budget Analyst to identify those positions currently authorized in the Airfield Development Bureau that would be necessary to reassign to the Bureau of Design and Construction to manage the Runway Reconfiguration Program, and disestablish the Airfield Development Bureau.

Costs and Benefits

By reassigning the Runway Reconfiguration Program mission to the Bureau of Design and Construction, the Airport would realize a savings in administrative positions and would also take advantage of the expertise within the Bureau of Design and Construction, which heretofore has managed the development of the Airport's capital projects. Total savings in budgeted salaries would be approximately $3,153,968. Savings in actual filled positions would be approximately $451,632 annually.

The recommendation to disestablish the Airfield Development Bureau and assign the Runway Reconfiguration Program mission to the Bureau of Design and Construction should result in no additional costs to the City.

Exhibit 7.1
Airfield Development Bureau Organizational Structure FY 2002-2003 (PDF)