An audit of operations at Pearson Field points out the need for adherence to basic business principles and for oversight from the city of Vancouver. Failure is costly to taxpayers.
According to an internal audit conducted by the city, lax management at the airport from 2008 to August 2018 cost at least $63,395 and as much as $149,211 in lost missed potential revenue. As an article in The Columbian detailed, “the airport bled money through a variety of unauthorized discounts and out-of-date contracts.”
The period in question covers the leadership of former Pearson Airport Manager Willy Williamson, who served for a decade until July 2018. While there appears to be no evidence of malfeasance or theft, the issues highlight a lack of accountability and an old-fashioned manner of conducting business that ultimately hurt city residents. Running a city-owned entity through a series of handshake agreements and backroom deal-making that violates standard policies is unacceptable.
For example, the audit found the then-manager gave unauthorized discounts to 52 tenants of T-hangars and tie-downs over the decade in question. That resulted in an actual loss of $17,130, plus a potential $5,078 for discounts that continued beyond their time limits.
For another example, the audit found that Williamson gave the airport’s fixed-base operator, or “gas station,” an unapproved 86 percent discount on its rent. He also billed the fixed-base operator at 2010 rates through 2016 for a contract that expired in 2012.
And as of Aug. 31, 2018, of the airport’s 161 occupied T-hangars and tie-downs, 88 had out-of-date requirements or rental rates, and seven had no contract at all.
For a city that has an annual budget of about $600 million, the loss of anywhere from $63,000 to $149,000 over the course of a decade is not a threat to fiscal stability. But it calls into question the city’s diligence regarding stewardship of public dollars.
City Manager Eric Holmes told The Columbian: “The first time that I was aware of the items that are enumerated in this report was when I read the report.” In 2011, the state auditor’s office performed an accountability report of multiple city departments, including Pearson, and found “the city’s internal controls were adequate to safeguard public assets.”
But something slipped through the cracks, a fact that should lead Vancouver — and other jurisdictions — to assess how closely they keep an eye on public assets. Coming on the heels of a report that Clark County has not been collecting promised payments from the Cowlitz Indian Tribe related to the ilani casino, it reinforces the notion that local government is not paying close enough attention to finances.
In response to the Pearson audit, the city has put together a Corrective Action Plan. Among the recommendations is the hiring of an additional employee to share the duties of airport manager, but adding the cost of extra personnel should be regarded as a measure of last resort. Another recommendation is to research leasing software that would allow rental agreements and other documents to be accessed by other city departments.
The fact that Pearson is still handling rental agreements in an outdated manner cuts to the heart of the problem. The airport, which is in the Fort Vancouver National Site, has been in operation for more than a century and has played a significant role in the history of the region. But being rich with historical importance is not an excuse for conducting business in an old-fashioned manner.
