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HomeMy WebLinkAboutS16 - JWA Settlement Agreement: Commuter Air Carrier or Commuter Carrier`t SEW PO CITY OF a NEWPORT BEACH <,FoP City Council Staff Report May 23, 2017 Agenda Item No. S16 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave Kiff, City Manager - 949-644-3001, dkiff@newportbeachca.gov PREPARED BY: Dave Kiff, City Manager TITLE: Amendment to the JWA Settlement Agreement: Definition of Commuter Air Carrier or Commuter Carrier ABSTRACT: This agenda item proposes approving an amendment to the 1985 -era JWA Settlement Agreement to modify the definition of "commuter air carrier" to include Class E Aircraft regularly configured with not more than seventy-six (76) passenger seats instead of seventy (70) seats. This proposed change solely relates to the number of passengers. RECOMMENDATION: a) Find that the execution of the Eleventh Supplemental Stipulation to the JWA Settlement Agreement is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; b) Find that the Eleventh Supplemental Stipulation to the JWA Settlement Agreement complies with City Council Policy A17; and c) Authorize the City Attorney to execute the Eleventh Supplemental Stipulation to the JWA Settlement Agreement on behalf of the City. FUNDING REQUIREMENTS: There is no fiscal impact related to this item. DISCUSSION: In 1985, the City, County of Orange, the Airport Working Group ("AWG"), and Stop Polluting Our Newport (SPON) (the "Parties") entered into a Settlement Agreement ("Agreement") to resolve litigation related to John Wayne Airport ("JWA"). Over the years, the Agreement has been amended by the Parties to adjust the terms and to protect the interests of our community. Each amendment generally must not violate the Federal Airport Noise and Capacity Act of 1990 ("ANCA"). ANCA, passed following the initial approval of the Agreement, generally prohibits localities from enacting noise - based or capacity restrictions on airports that could "further limit noise or capacity" without detailed and expensive plans submitted to and approved by the FAA. S16-1 Amendment to the JWA Settlement Agreement: Definition of Commuter Air Carrier or Commuter Carrier May 23, 2017 Page 2 In October 2014, the U.S. District Court signed the stipulation order for the most recent Agreement extension. The Agreement's second extension — like all of its amendments — was negotiated and signed by the same Parties. Today, the Agreement says this (among other things): Noise -Based Curfew. The curfew cannot be adjusted until after 2035. As a result of the noise limits in the curfew, commercial aircraft may not take off before 7:00 a.m. (Monday - Saturday) or before 8:00 a.m. on Sundays, nor can commercial carriers schedule departures after 10:00 p.m. or arrive after 11:00 p.m. on any day. Passenger Cap. Today, there is a cap on the number of passengers that can transit through the airport in any one year. An arrival and a departure by one person counts as two (2) passengers, whether that person be on a commercial carrier (like American, United, or Southwest) or on a commuter plane (like SkyWest). Today, the cap is 10.8 million annual passengers (MAP). Starting in 2021, the cap will go up to 11.8 MAP through 2025. After December 31, 2025, the cap could go up again to either 12.2 MAP or 12.5 MAP through 2030 (whether it goes to 12.2 MAP or 12.5 MAP depends upon if MAP exceeds 11.21 MAP in any one year during 2021-2025). Class A Average Daily Departures ("ADDs"). Today, there is a cap of 85 ADDs (plus four cargo ADDs) for Class A flights, which are generally the louder commercial flights. Class A departures can cross over the noise monitoring stations under a higher dB level (dB limits are forth in the Agreement) than "Class E" flights. Under the 2014 Amendment, there can be 95 Class A ADDs (plus four cargo ADDs) from 2021 through 2030. As noted, it is not uncommon that aspects of the Agreement require amendments to comply with current aviation practices or current law. Recently, the Agreement was amended by the Parties in November 2015 when new, more sensitive microphones were placed at the ten (10) noise monitoring stations. The amendment accommodated the advanced technology and its readings so that the Agreement itself would remain compliant with ANCA. About this Proposed Amendment Commuter air carriers such as SkyWest operate out of JWA and typically partner with major carriers including Alaska, American, Delta and United for shorter flights and/or flights to destinations that major carriers do not cover. SkyWest often flies an Embraer E175 (100 planes in the fleet) and a Bombardier CRJ900 NextGen (36 planes in the fleet) with a seat configuration of up to 76 seats. S16-2 Amendment to the JWA Settlement Agreement: Definition of Commuter Air Carrier or Commuter Carrier May 23, 2017 Page 3 Embraer E175 /� rrrrrrrrer U — 'rrrrrrrrr^ �m rr Bombardier CRJ900 Currently, the Agreement has a fixed definition for Commuter Air Carrier/Commuter Carrier that includes both the passenger seat capacity (at 70 seats) and the weight of the plane (at no more than 90,000 pounds of gross takeoff weight). Section 21 of the Agreement reads as follows: "Commuter Air Carrier" or "Commuter Carrier" means any person who: (i) operates Regularly Scheduled Air Service into and out of JWA for the purpose of carrying passengers, freight, cargo, or for any other commercial purpose; (ii) with Class E Aircraft regularly configured with not more than seventy (70) passenger seats; and (iii) operating at gross take -off weights of not more than ninety thousand (90, 000) pounds. For the purposes of the Plan, Commuter Air Carrier includes all Commuter Cargo Carriers. Earlier in 2017, JWA's Airport Director initiated a review of certain provisions of the Access Plan at JWA as it relates to commuter air carriers. JWA received written comments from Alaska, American, Delta, SkyWest, Southwest, and United. Following S16-3 Amendment to the JWA Settlement Agreement: Definition of Commuter Air Carrier or Commuter Carrier May 23, 2017 Page 4 that review, JWA staff has asked that the Agreement be amended to change the passenger seating of a commuter air carrier plane (as defined) to not more than 76 seats in order to "accommodate the evolutionary development in the air transport industry relating to the increased size of aircraft currently being utilized by Commuter Air Carriers to serve increasingly dense short -haul markets." If approved as proposed, a redline of the changes to the Agreement would look like this and be limited to Section 21: 21. Commuter Air Carrier or Commuter Carrier means any entity which: (i) operates Regularly Scheduled Air Service into and out of JWA for purposes of carrying passengers, freight, cargo, or for any other commercial purpose; (ii) with Class E Aircraft regularly configured with not more than seventy (704 seventy-six (76) passenger seats; and (iii) operating at gross takeoff weights of not more than ninety thousand (90,000) pounds. For purposes of this Plan, Commuter Carrier includes all Commuter Cargo Carriers. City staff, including the City Manager, City Attorney, and airport consultant Tom Edwards reviewed this proposal over the past weeks, as well as meeting in person with JWA staff and representatives from SPON/Air Fair and AWG. We agree that this change is appropriate and not disadvantageous to the Newport Beach community. One can argue, too, that the use of the MAP on quieter Class E planes such as the commuter planes is more beneficial than MAP used on Class A planes. As of the date of this report, AWG has signed off on the amendment to the Agreement (they did so in early May, 2017). SPON has not yet done so; however, SPON is expected to approve the amendment. The County expects to approve the amendment at the June 6, 2017 meeting of the Board of Supervisors. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING - The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Eleventh Supplemental Stipulation and Proposed Order S16-4 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 ATTACHMENT A UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA COUNTY OF ORANGE, Plaintiffs, V. AIR CALIFORNIA, et al. Respondents. CITY OF NEWPORT BEACH, Counterclaimant, V. COUNTY OF ORANGE; ORANGE COUNTY BOARD OF SUPERVISORS, and DOES 1 through 1,000, Inclusive, Counterdefendants. AND RELATED COUNTERCLAIMS. [PROPOSED] ORDER Case No. CV 85-1542 TJH (MCx) [PROPOSED] ORDER RE ELEVENTH SUPPLEMENTAL STIPULATION BY THE COUNTY OF ORANGE, CALIFORNIA, THE CITY OF NEWPORT BEACH, STOP POLLUTING OUR NEWPORT, AND THE AIRPORT WORKING GROUP OF ORANGE COUNTY, INC., AMENDING THE TERMS AND CONDITIONS OF THE PREVIOUS STIPULATIONS OF THOSE PARTIES AND REQUESTING A MODIFICATION OF AN EXECUTORY JUDGMENT OF THE COURT CASE NO. CV 85-1542 TJH (MCx) S16-5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 C�]:� 17 X1:7 By the executed stipulation of the parties, and in consideration of the matters recited in the stipulation, the 1985 Stipulation and the confirming judgment are hereby modified to amend the definition of Commuter Air Carrier as follows: "Commuter Air Carrier or Commuter Carrier means any entity which: (i) operates Regularly Scheduled Air Service into and out of JWA for purposes of carrying passengers, freight, cargo, or for any other commercial purpose; (ii) with Class E Aircraft regularly configured with not more than seventy-six (76) passenger seats; and (iii) operating at gross takeoff weights of not more than ninety thousand (90,000) pounds. For purposes of this Plan, Commuter Carrier includes all Commuter Cargo Carriers." IT IS SO ORDERED. Dated: , 2017 By: [PROPOSED] ORDER 1 The Honorable Terry J. Hatter, Jr. United States District Judge CASE No. CV 85-1542 TJH (MCx) S16-6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Leon J. Page, County Counsel (Bar No. 208587) Lauren Kramer, Deputy County Counsel (Bar No. County of Orange P.O. Box 1379 Santa Ana, CA 92702-1379 Telephone: (949) 252-5280 Facsimile: (949) 252-5044 Attorneys for County of Orange (See next page for additional counsel) UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA COUNTY OF ORANGE, Plaintiffs, V. AIR CALIFORNIA, et al. Respondents. CITY OF NEWPORT BEACH, Counterclaimant, V. COUNTY OF ORANGE; ORANGE COUNTY BOARD OF SUPERVISORS, and DOES 1 through 1,000, Inclusive, Counterdefendants AND RELATED COUNTERCLAIMS. I I THSUPPLEMENTAL STIPULATION Case No. CV 85-1542 TJH (MCx) ELEVENTH SUPPLEMENTAL STIPULATION BY THE COUNTY OF ORANGE, CALIFORNIA, THE CITY OF NEWPORT BEACH, STOP POLLUTING OUR NEWPORT, AND THE AIRPORT WORKING GROUP OF ORANGE COUNTY, INC., AMENDING THE TERMS AND CONDITIONS OF THE PREVIOUS STIPULATIONS OF THOSE PARTIES AND REQUESTING A MODIFICATION OF AN EXECUTORY JUDGMENT OF THE COURT CASE No. CV 85-1542 TJH (MCx) S16-7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Lori D. Ballance (Bar No. 133469) lballancek,gdandb. com Gatzke Dillon & Ballance LLP 2762 Gateway Road Carlsbad, California 92009 Telephone: (760) 431-9501 Facsimile: (760) 431-9512 Attorneys for County of Orange Aaron C. Harp (Bar No. 190665) ahgMgnewportbeachca. gov City Attorney 100 Civic Center Drive Newport Beach, California 92660 Telephone: (949) 644-3131 Facsimile: (949) 644-3139 Attorneys for City of Newport Beach Barbara Lichman (Bar No. 13 8469) blichmangbuchalter. com Buchalter Nemer 18400 Von Karman Avenue, Suite 800 Irvine, California 92612 Telephone: (949) 224-6292 Facsimile: (949) 720-0182 Attorneys for Airport Working Group of Orange County, Inc. (AWG) Steven M. Taber (Bar No. 250205) stabergtaberlaw. com Taber Law Group PC P.O. Box 60036 Irvine, California 92602 Telephone: (949) 735-8217 Facsimile: (714) 707-4282 Attorneys for Stop Polluting Our Newport (SPON) I I THSUPPLEMENTAL STIPULATION CASE No. CV 85-1542 TJH (MCx) S16-8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 The County of Orange, California ("the County"), which is the certificated proprietor of John Wayne Airport, Orange County (SNA) ("MA"), the City of Newport Beach, California ("the City"), Stop Polluting Our Newport ("SPON"), and the Airport Working Group of Orange County, Inc. ("AWG"), by their respective counsel, enter into the following stipulation: RECITALS 1. On December 15, 1985, this United States District Court entered a final judgment ("the confirming judgment") in this action as between the County, the City, SPON, and AWG (collectively, "the settling parties") based upon a stipulation executed by their respective counsel and submitted to the Court in November 1985 ("the 1985 Stipulation") 2. In addition to the settling parties, the Federal Aviation Administration ("FAA"), and various other parties, including various certificated commercial airlines, were also parties to this action. By a series of stipulations and a confirming order of this Court entered in 1986, the remaining claims and issues in the action were dismissed, without prejudice. 3. The 1985 Stipulation, as amended, and the confirming judgment (which incorporated the terms of the 1985 Stipulation) contain certain provisions that are executory and binding upon, among others, the County, from the date of the Court's entry of the confirming judgment through December 31, 2030. 11 THSUPPLEMENTAL STIPULATION 1 CASE No. CV 85-1542 TJH (MCx) S16-9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 4. As a result of recent events occurring in the airline industry generally, and at JWA specifically, the County has determined that an amendment to the Phase 2 Commercial Airline Access Plan and Regulation ("Phase 2 Access Plan") is required in order to accommodate the evolutionary development in the air transport industry relating to the increased size of aircraft currently being utilized by Commuter Air Carriers to serve increasingly dense short -haul markets. 5. This amendment requires a modification to the definition of a Commuter Air Carrier (Phase 2 Access Plan, Section 2.18) to include Class E Aircraft regularly configured with not more than seventy-six (76) passenger seats instead of seventy (70) passenger seats. 6. The definition of a Commuter Air Carrier is a defined term in the 1985 Stipulation and subsequent amendments to the Stipulation. 7. The Parties have agreed to amendments to the 1985 Stipulation and confirming judgment to maintain consistency with these modifications to Section 2.18 of the Phase 2 Access Plan, which will now define Commuter Air Carrier as Class E Aircraft regularly configured with not more than seventy-six (76) seats. 11 THSUPPLEMENTAL STIPULATION N CASE No. CV 85-1542 TJH (MCx) S16-10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 IN LIGHT OF THESE CIRCUMSTANCES AND RECITALS, THE PARTIES TO THIS STIPULATION AGREE AS FOLLOWS: AGREEMENT 8. By this written agreement of the settling parties, the 1985 Stipulation and confirming judgment are modified to amend the definition of Commuter Air Carrier consistent with amendments to Section 2.18, as follows: Commuter Air Carrier or Commuter Carrier means any entity which: (i) operates Regularly Scheduled Air Service into and out of JWA for purposes of carrying passengers, freight, cargo, or for any other commercial purpose; (ii) with Class E Aircraft regularly configured with not more than seventy-six (76) passenger seats; and (iii) operating at gross takeoff weights of not more than ninety thousand (90,000) pounds. For purposes of this Plan, Commuter Carrier includes all Commuter Cargo Carriers. 9. This agreement is subject to the following limitations: (a) Provisions of the 1985 Stipulation and confirming judgment, other than those provisions directly related to the definition of Commuter Air Carrier, and other than any other provisions of the agreement already subject to a stipulated modification executed by all of the settling parties, shall continue to remain in effect and enforceable by the settling parties; and (b) nothing in this stipulation obligates any of the settling parties to enter into or agree to any further stipulations modifying the 1985 Stipulation, or the confirming judgment. 11 THSUPPLEMENTAL STIPULATION 3 CASE No. CV 85-1542 TJH (MCx) S16-11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 10. This stipulation, if filed and approved by the Court, shall be deemed to supercede the parties 10th Supplemental Stipulation and it has been executed and approved in lieu thereof. Dated: Dated: Dated: 11 THSUPPLEMENTAL STIPULATION Attorneys for Plaintiff and Counterdefendants, the County of Orange and the Orange County Board of Supervisors Leon J. Page County Counsel, County of Orange M Lauren Kramer Deputy County Counsel Lori D. Ballance Gatzke Dillon & Balance LLP By: Lori D. Ballance Attorneys for Defendant, Counterclaimant and Crossdefendant, the City of Newport Beach Aaron C. Harp City Attorney of Newport Beach M Aaron C. Harp Attorneys for Defendant, Counterclaimant and Crossdefendant, Stop Polluting Our Newport (SPON) 4 CASE No. CV 85-1542 TJH (MCx) S16-12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Attorneys for Defendant, Counterclaimant and Crossdefendant, Stop Polluting Our Newport (SPON) Dated: Steven M. Taber By: Steven M. Taber Attorneys for Defendant, Counterclaimant and Crossdefendant, Airport Working Group (AWG) Dated: Barbara E. Lichman an Barbara E. Lichman 5 11 THSUPPLEMENTAL STIP ULA TION CAsE No. CV 85-1542 TJH (HCx) S16-13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 CERTIFICATE OF SERVICE The undersigned, counsel for COUNTY OF ORANGE, hereby certifies that a true and correct copy of the attached document was made available for viewing and downloading through the CM -ECF (Electronic Case Filing) system to all counsel of record who are registered to receive a Notice of Electronic Filing for this case. Executed on 12017. 11 THSUPPLEMENTAL STIPULATION L /s/ Lori D. Ballance Lori D. Ballance CASE No. CV 85-1542 TJH (MCx) S16-14