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HomeMy WebLinkAboutS28 - JWA Settlement AgreementProposed Extension-MOUj May 22, 2001 Agenda Item No. S28 CITY OF NEWPORT BEACH Office of the City Attorney TO: Mayor and Members of the City Council FROM: Homer Bludau Robert Burnham RE: John Wayne Airport Settlement Agreement Proposed Extension Proposed MOU DATE: May 22, 2001 BACKGROUND The 1985 John Wayne Airport Settlement Agreement (Agreement) expires at the end of 2005 and the City Council has consistently advocated an extension of the term of the Agreement. The City Council adopted a resolution on August 8, 2000 that formally requested the Board of Supervisors to join with the City to begin the environmental review process that must be completed prior to approval of any amendment of the Agreement. On December 5, 2000, the Board of Supervisors directed County staff to meet with City staff to develop the terms and conditions of a proposed amendment of the Agreement in sufficient detail to enable preparation of an environmental document and discussion with interested parties. On May 8, 2001 the Board of Supervisors directed the CAO to initiate the CEQA process and to negotiate a Memorandum of Understanding (MOU) that would establish Project alternatives as well as defining the respective roles of the City and County in preparing the environmental document. The MOU and Project alternatives are to be submitted to the Board for approval on May 22, 2001. DISCUSSION Staff has prepared a "PowerPoint" presentation that compares the key provisions of the Settlement Agreement with the terms and conditions of the proposed amendment (Project) that the Board approved for purposes of environmental review. The "project" was selected as the starting point for environmental analysis and does not reflect any agreement on the terms and conditions of an amendment to the Settlement Agreement. The project grew out of discussions with County staff and, in certain respects, reflects their views on terms and conditions that may be in the interests of the County and the air carriers that provide service at JWA. The John Wayne Airport Settlement Agreement Extension Committee (Committee) has been advised regarding the general terms and conditions of the MOU but has not, as of this date, had an opportunity to review and "evaluate the document. The Committee will make an oral report, with recommendations, at the meeting. Copies of the proposed MOU will be distributed to the City Council when staff has received the draft document to be presented to the Board of Supervisors. RECOMMENDATIONS Staff is recommending that the City Council take the following actions: 1. Authorize the City Manager to execute an MOU regarding preparation of the EIR; 2. Authorize the City Manager to execute agreements with consultants to prepare portions of the environmental document so long as the expenditures are within budgetary authority; 3. Approve a budget amendment designating $400,000 for purposes of completing the environmental document on the Project. Homer Bludau Robert H. Burnham City of Newport Beach BUDGET AMENDMENT 2000 -01 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues Px from unappropriated fund balance EXPLANATION: NO. BA- 053 AMOUNT: $400,000.00 Increase in Budgetary Fund Balance AND X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To increase expenditures related to the settlement Agreement EIR. 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