CITY OF NEWPORT BEACH

OFFICE OF THE CITY ATTORNEY

_____________________________________________________________________

August 8, 2000

TO: Mayor & Members of the City Council

FROM: City Manager and City Attorney

RE: John Wayne Airport Settlement Agreement

Proposed Amendment to Extend the Term

BACKGROUND

In 1985, the City of Newport Beach, County of Orange, SPON and AWG entered into the John Wayne Airport Settlement Agreement (Agreement). The Agreement authorized the construction of a new terminal and jetways, parking facilities and other improvements at John Wayne Airport (JWA). The Agreement, which expires December 31, 2005, establishes three "noise based" classes of commercial aircraft departures (Class "A", "AA", and "E") and limited the number of the two "noisiest" categories (Class "A" and "AA"). The limits on Class "A" and "AA" departures, which are expressed in terms of average daily departures or "ADD", are 39 ADD and 34 ADD respectively.

The permitted noise levels for Class "A" and "AA" departures have been modified on two occasions – the first in response to an amendment to FAA Advisory circular 91-53A that required modifications to noise abatement departure procedures and the second in response to the installation of new noise monitors. The Parties to the Agreement have also entered into a series of stipulations that authorize two additional Class "A" departures for FedEx and UPS. The two cargo departures are permitted five (5) days a week and only within certain timeframes.

DISCUSSION The City Council has a formal aviation policy (A-17 – copy attached as Exhibit A) that establishes certain goals and objectives. One of the primary goals is an amendment of the Agreement to extend the term beyond 2005. City Council approval of an amendment to the Agreement is a "project" pursuant to CEQA and requires adequate environmental documentation. Staff has prepared a draft "project description" that would be the basis for conducting an Initial Study and making the initial determinations required by CEQA.

The draft project description (copy attached as Exhibit B) is generally consistent with Council Policy A-17 and some of the key features of the proposed project can be summarized as follows:

1. The expiration date of the Agreement would be extended from December 31, 2005 to December 31, 2025.

2. The two "all cargo" operations that have been authorized by stipulation would be incorporated into the Agreement.

3. The modifications to noise thresholds resulting from the remote monitoring station changeover and AC 91-53A would be incorporated into the Agreement.

4. The modifications to amount of terminal area that can be leased for commercial purposes that were approved by the City Council would be incorporated into the Agreement.

RECOMMENDATIONS

Staff recommends that the City Council take the following action:

1. Approve, in concept, the draft project description (Exhibit B).

2. Authorize staff and special counsel to finalize the project description after consultation with appropriate County staff and other interested parties. Staff and special counsel are authorized to make minor changes to the project description and or project objectives as necessary to comply with CEQA or to ensure consistency with Council Policy A-17.
 
 

3. Authorize staff and special counsel to conduct an Initial Study of the project, determine the environmental document required by CEQA, issue appropriate notices and prepare the document.

4. Direct staff to prepare an agreement with Shute Mihaly and Weinberger to act as project manager and authorize the City Manager to execute the agreement.

5. Adopt a resolution (copy attached as Exhibit C) that requests Supervisor Wilson and the Board of Supervisors to cooperate with City in the preparation of the environmental document and approval of an agreement authorizing the City to function as lead agency.

Staff and special counsel will be available at the meeting to respond to questions and provide additional information.
 
  ____________________ _____________________

Homer Bludau Robert Burnham

City Manager City Attorney
 
 

EXHIBIT A

NEWPORT BEACH AVIATION POLICY

POLICY

The City's aviation policy consists of three components:

A. The preservation of the John Wayne Airport Settlement Agreement;

B. The possible modification of the Settlement Agreement under terms acceptable
to the City and County; and

C. The development of an additional commercial airport to complement service
provided at JWA.

The measures to implement this policy are discussed in POLICY IMPLEMENTATION and implementation of all components of this policy are necessary to preserve the quality of life for Newport Beach residents.

PURPOSE

The purpose of this policy is to establish a comprehensive program to minimize the impact of John Wayne Airport (JWA) on the quality of life for Newport Beach residents by preserving the current operational restrictions at JWA, investigating ways to extend and/or strengthen those restrictions, and encouraging objective evaluation of the potential for converting El Toro MCAS to a commercial airport that would complement air transportation service provided at JWA.

INTRODUCTION

The Southern California Association of Governments (SCAG) has predicted that the demand for air transportation in Orange County will exceed 16 million annual passengers (MAP) in the year 2000 and 23 MAP in 2010. JWA is the only commercial airport in Orange County and commercial aircraft departing JWA generate noise that affects more than 40,000 Newport Beach residents. However, inadequate land area and other constraints currently prevent JWA from serving more than 50% of the existing demand, and less than half of the anticipated demand, for air transportation in Orange County.

 Nonetheless, in the absence of an additional and complementary commercial airport convenient to Orange County residents, there will be constant and continued pressure to increase the number of commercial jet departures at JWA and any resulting increase in noise could further degrade the quality of life for our residents. Newport Beach accepts the fact that, in all probability, JWA will remain a commercial airport for the foreseeable future and plays an important role in Orange County's economic structure. However, Newport Beach will not accept any substantial increase in commercial jet aircraft noise and will oppose any physical improvement at JWA that could cause that to occur.

A major source of future additional air transportation demand is the urbanization of Southern Orange County. The Board of Supervisors and the cities in Southern Orange County must be willing to accept the responsibility to provide for some of the air transportation demand generated by those businesses and residents. There is evidence to suggest that El Toro Marine Corps Air Station (El Toro MCAS) can, when closed, be converted to a commercial aviation facility:

A. With substantially less noise than generated by current military operations;

B. Without significantly affecting the quality of life for South County residents;

C. And provide a stimulus to the Orange County economy.

Newport Beach residents have experienced the same fears and concerns now expressed by South County residents, but operational restrictions imposed on JWA by the Settlement Agreement with Orange County have reduced the impacts on our residents while serving the needs of all of Orange County.

POLICY IMPLEMENTATION

A. Preservation of the JWA Settlement Agreement. The City Council and staff shall take all steps necessary to protect the validity of the JWA Settlement Agreement. These steps include, without limitation, the following: 1. The City shall oppose, or seek protection from, any Federal legislative or regulatory action that would or could affect or impair the County's ability to operate JWA consistent with the provisions of the JWA Settlement

Agreement or the City’s ability to enforce the Settlement Agreement. City staff shall continue to monitor possible amendments to the Airport Noise and Capacity Act of 1990 as well as various FAA Regulations and Advisory Circulars that relate to aircraft departure procedures.

2. The City shall maintain membership in NOISE and/or other groups whose primary purpose is to preserve the right of airport proprietors or noise impacted residents to establish or enforce reasonable restrictions to reduce the noise impact of commercial aircraft operations.

3. The City shall request, and assist the County in implementing, improvements to the comprehensive noise control program at JWA, which are consistent with the terms and provisions of the Settlement Agreement, and do not adversely impact airport capacity or safety. Such improvements could include, without limitation, the following:

a. Implementation of aircraft flight or departure procedures, which assure the community of the best feasible, noise abatement;
b. The preservation of the existing permanent remote monitoring
stations and the upgrade of the current noise monitoring system
whenever feasible;

c. Continued enforcement of the General Aviation Noise Ordinance.

B. Possible Extension of the Settlement Agreement. City Staff is directed to continue to discuss and, subject to City Council approval, negotiate amendments to the JWA Settlement Agreement. The City Council will not approve any amendments to the Settlement Agreement absent FAA approval, preservation of the curfew, and a permanent reduction in the number of permitted departures by the noisiest commercial aircraft currently using the airport. These are the minimum criteria that must be satisfied before the Council will even consider any limited increase in the number of permitted commercial jet departures or passenger service levels.

C. Additional Commercial Airport. The City of Newport Beach has long advocated the development of an additional commercial airport to complement service at JWA. While the only mandatory criteria for the additional airport is that it be located convenient to Orange County residents, the City of Newport Beach, SCAG, the Southern California Regional Airport Authority, the FAA and the Orange County Cities Airport Authority have all recognized the potential of El Toro MCAS to accommodate commercial aviation without adversely affecting the quality of life of South Orange County residents. The second airport site studies conducted to date have not identified a feasible location for an additional airport other than El Toro MCAS. El Toro MCAS consists of 4700 acres of land and the base is surrounded by more than 16,000 acres of land that is vacant or devoted to uses which are compatible with the extremely noisy military jets that now comprise the majority of El Toro MCAS operations. El Toro has two 10,000-foot runways and two (2) 8,000-foot runways. Ground access to the base is provided by five existing or planned freeways, tollways, or transportation corridors as well as the nearby Amtrak railroad line. Technical studies have confirmed that commercial departures can be accommodated by the existing runways such that residents are exposed to substantially less noise than generated by existing military operations. These factors, combined with the decision of the Department of Defense to close El Toro MCAS in 1999, require a thorough and objective evaluation of the commercial aviation potential of El Toro during any reuse planning process.

While a final position on commercial aviation at El Toro MCAS should not be taken by any public or private entity until completion of a thorough and objective study, the following statements can be made with certainty:

1. El Toro MCAS is a County-wide resource which, if properly redeveloped, could generate substantial direct revenue through commercial aircraft operations and other on-site development as well as stimulate Orange County's economy and dramatically increase private and public sector revenue;

2. Evaluation of commercial aviation at El Toro should assume the continued existence of JWA while recognizing the limited size and physical capacity of that facility;

3. El Toro MCAS could be converted to a commercial airport without any South County resident experiencing noise as great as that generated by current military operations and much less noise than is currently experienced by any Newport Beach resident;

4. Public entities and residents likely to be impacted by airport noise or airport operations must receive written and binding assurances that any operational control or restriction necessary to minimize the adverse impact on quality of life will remain in effect in perpetuity.

 Adopted - February 14, 1972

Amended - October 14, 1975

Amended - November 27, 1978

Amended - October 14, 1980

Amended - July 27, 1981

Amended - September 27, 1982

Amended - March 14, 1983

Amended - May 23, 1985

Amended - December 9, 1985

Amended - October 22, 1990

Formerly B-1 and B-2

Adopted - December 13, 1993

Amended - February 27, 1995

Amended – March 22, 1999

Formerly B-1
 
 

EXHIBIT B
 Draft Project Description for Proposed Amendment of the JWA Settlement Agreement
The following is a description of a project that involves proposed amendments to the John Wayne Airport Settlement Agreement (Agreement). In addition to the information required by Section 15124 of the CEQA Guidelines, the project description summarizes the key provisions of the Agreement and the modifications to the Agreement (Amendments) that are to be evaluated pursuant to the CEQA (Project).

1. Project Location

John Wayne Airport (JWA) is located on approximately 470 acres of land bounded generally by the 405 Freeway (North), MacArthur Blvd. and Campus Drive (East), Bristol Ave. (South) and Airway Drive (West). A map showing the precise location of JWA is attached as Exhibit A.

2. Project Objectives

The Project objectives are:

(a) To maintain the quality of life of the residents affected by aircraft operations at JWA;

(b) To preserve the value of the residential property and commercial property impacted by aircraft operations at JWA;

(c) To serve a portion of Orange County’s air transportation demand consistent with the protection of the quality of life and property values of residents and property owners in the JWA arrival and departure corridor;

(d) To ensure that the traffic related to JWA is consistent with the circulation system in the vicinity of the airport.

(e) To preserve the current legally permissible and authorized level of operations at JWA.

(f) To protect the biological resources in the Upper Newport Bay Ecological Preserve that is immediately south of the airport and directly under the standard instrument departure procedure utilized by large commercial aircraft.

 3. Project Components

The Agreement currently expires on December 31, 2005. The Project involves Amendments to the Agreement that would maintain the legally permissible and authorized level of operations that exist as JWA as of the date of the Initial Study. The Amendments would also reflect approvals modifying the Agreement that have been given by the Parties but not implemented as of the date of the Initial Study. The Project consists of Amendments to the Agreement that would:

(a) Extend the term for a period of twenty years with December 31, 2025 designated as the new expiration date.

(b) Authorize UPS and FedEx to each operate one Class "A" aircraft two hundred and seventy-five (275) times per year. These "all cargo" operations would be subject to the same provisions found in the current interim stipulations between the "settling parties."

(c) Modify the "noise thresholds" for the various classes of aircraft to reflect the limits approved pursuant to the stipulations signed previously signed by the settling parties.

(d) Modify certain provisions of the Agreement relative to the amount of space that is subject to commercial leases or licenses consistent with action of the City of Newport Beach, SPON and AWG.

(e) Modify certain provisions of the Agreement to reflect actions that have been fully or partially implemented such as construction of the terminal.

The Project does not contemplate or assume any physical change to the airfield, terminal or other improvements at JWA or in the vicinity of the airport. The Project also does not contemplate or assume any change in the number of general aviation aircraft currently housed at JWA or the number of general aviation operations.

4. Scoping/Early Public Consultation

The City of Newport Beach shall, prior to conducting the Initial Study and making a determination on the nature and extent of possible impacts, meet with the County of Orange to discuss modifications to the Project that are appropriate to further define and ultimately achieve Project objectives. The City of Newport Beach may also discuss the proposed Project description with public agencies, organizations and persons that would be concerned with the possible effects of the Project.

EXHIBIT C
A RESOLUTION OF THE NEWPORT BEACH CITY COUNCIL ASKING THE ORANGE COUNTY BOARD OF SUPERVISORS TO SUPPORT, IN CONCEPT, THE DESIGNATION OF THE CITY OF NEWPORT BEACH AS THE LEAD AGENCY IN PREPARING AN ENVIRONMENTAL DOCUMENT TO EVALUATE THE IMPACTS OF AN EXTENSION OF THE JOHN WAYNE AIRPORT SETTLEMENT AGREEMENT

WHEREAS, the City Council has a formal aviation policy (A-17) that establishes certain goals and objectives including the amendment of the John Wayne Airport Settlement Agreement (Agreement) to extend the term beyond 2005.

WHEREAS, City Council approval of an amendment to the Agreement is a "project" pursuant to the California Environmental Quality Act (CEQA) and requires the preparation of adequate environmental documentation.

WHEREAS, the City Council has approved a draft "project description" (Exhibit A) for purposes of conducting an Initial Study and making the initial determinations required by CEQA.

WHEREAS, the City of Newport Beach and the County of Orange each must approve an amendment to the Agreement.

WHEREAS, the City of Newport Beach is willing to prepare the environmental document for the project and perform the other functions required of a lead agency by CEQA.

WHEREAS, CEQA allows two public agencies to enter into an agreement one of the entities as the Lead Agency and to cooperate in the preparation of the environmental document as well as jointly perform other functions required by CEQA.

WHEREAS, the City of Newport Beach and the County of Orange have a lengthy history of cooperation in matters pertaining to the Agreement and the approval of a "lead agency agreement" is in the best interests of both parties to the Agreement.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH HEREBY REQUESTS SUPERVISOR TOM WILSON AND THE ORANGE COUNTY BOARD OF SUPERVISORS:

1. TO SUPPORT THE PREPARATION OF AN ENVIRONMENTAL DOCUMENT (ED) BY THE CITY OF NEWPORT BEACH THAT EVALUATES THE IMPACTS OF AN AMENDMENT OF THE JWA SETTLEMENT AGREEMENT TO EXTEND THE TERM WITH NO CHANGE TO THE CURRENT LEGALLY PERMISSIBLE AND AUTHORIZED LEVEL OF OPERATIONS (PROJECT);

2. TO APPROVE, IN CONCEPT, THE PROJECT DESCRIPTION (EXHIBIT A) FOR PURPOSES OF CONDUCTING THE INITIAL STUDY AND PREPARING THE ED; AND 3. TO DIRECT THE INTERIM CEO TO: A. REQUEST COUNTY STAFF TO FULLY COOPERATE WITH THE CITY OF NEWPORT BEACH IN ALL MATTERS PERTAINING TO THE PREPARATION OF THE ED FOR THE PROJECT;

B. TO PRESENT TO THE BOARD OF SUPERVISORS FOR APPROVAL AN AGREEMENT WITH THE CITY OF NEWPORT BEACH WITH THE FOLLOWING COMPONENTS:

(I) NEWPORT BEACH WILL BE THE LEAD AGENCY FOR THE PROJECT AND WILL DESIGNATE A PRIMARY CONTACT PERSON;

(II) THE COUNTY WILL BE A RESPONSIBLE AGENCY AND WILL DESIGNATE A PRIMARY CONTACT PERSON;

(III) COUNTY WILL PROVIDE NEWPORT BEACH WITH ALL STUDIES AND REPORTS, INCLUDING THOSE PREPARED IN CONJUNCTION WITH THE JWA MASTER PLAN AND THE EL TORO REUSE PLANNING PROCESS, THAT PERTAIN TO THE ENVIRONMENTAL ISSUES IDENTIFIED IN THE INITIAL STUDY AND RELATED ANALYSIS OF THE PROJECT (STUDIES AND REPORTS SHALL BE PROVIDED IN THE MOST CONVENIENT FORM FOR USE (COMPUTER DISK OR E-MAIL);

(IV) AN EQUITABLE SHARING OF COSTS RELATIVE TO THE PREPARATION OF THE ED SUCH AS PROJECT MANAGEMENT AND ANY ADDITIONAL STUDIES AND REPORTS (OR AUGMENTATION OF EXISTING STUDIES AND REPORTS) NECESSARY TO FULL DISCLOSURE OF POTENTIAL IMPACTS AND APPROPRIATE MITIGATION;

(V) COUNTY WILL HAVE FULL ACCESS TO ALL STUDIES, REPORTS AND DRAFT ENVIRONMENTAL DOCUMENTS;

(VI) NEWPORT BEACH WILL CONSIDER, IN GOOD FAITH, COUNTY COMMENTS ON THE ADEQUACY OF ANY DRAFT ED AND THE ACCURACY/ADEQUACY OF STUDIES, REPORTS AND DOCUMENTS RELATED TO THE PROJECT AND THE ED;

(VII) NEWPORT BEACH AND COUNTY TO MEET BI-WEEKLY TO REVIEW PROGRESS OF THE ED, THE STATUS OF STUDIES AND REPORTS, AND TO DISCUSS RELEVANT ISSUES;

ADOPTED this 8th day of August, 2000.
 
 

CITY OF NEWPORT BEACH,
 
 
 
 

Dated: __________________ By: ___________________________

John Noyes

Mayor

ATTEST
 
 

________________________

LaVonne Harkless, City Clerk