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Council Meeting October 13, 1998
Santa MOnica, Callfor~'T 1 3 a
TO Mayor and City Council
FROM' City Staff
SUBJECT Recommendation to Adopt a Resolution Callmg for the Development of a
Regional Airport Plan for Southern California
INTRODUCTION
This report recommends that the City CounCil adopt a resolution calling for the formation of
a Regional AIrport Plan for Southern California
BACKGROUND
At Its meetmg on September 22, 1998, the CIty CounCIl adopted a resolutIon author/zmg
staff to take an active role In reviewing. analYZing and provldmg comment on the proposed
expansion of Los Angeles International Airport The CIty CounCil also asked stattto return
With a resolution calling for the development of a Regional Airport Plan for Southern
California, as presented by the Mayor of EI Segundo
The City of Los Angeles Department of Airports' proposed Master Plan for Los Angeles
International Airport (LAX) IS designed to gUide the expansion and modernization of LAX
In order to accommodate growth m airport activity to 98 million annual passengers and
4 2 million tons of cargo per year by the year 2015 The expansion of LAX IS expected to
have Significant environmental Impacts on Santa Monica and the other commumtles of
western Los Angeles County, Includmg Increased air pollution, nOise and traffic congestion,
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detnmentallmpacts to roads and other Infrastructure, and greater diversion of corporate jets
to Santa MOnica Airport
The expansion of LAX IS expected to cause severe environmental consequences not only
for western Los Angeles County, but for the entire reg Ion The highest levels of population
and employment growth In the Southern California ASSOCiation of Governments (SCAG)
Region are expected to occur In the northern, western and southern reaches of the region
Providing a large percentage of the SCAG Reglon's airport capacity, including all of the
mternatlonal travel and cargo, at LAX negatively Impacts the entire region's air qualIty and
ground transportation system as many passengers and freights trucks must travel long
distances for air service
The SCAG region Includes many commerCial airports and current or former military bases,
such as Ontano, Palmdale, EI Toro and Pt Mugu, which could also serve the regional need
for air service A Regional Airport Plan would analyze the development of these other
airports In relation to the expected growth In the region's sub-areas The development of
a Regional Airport Plan could allow for a more eqUitable and environmentally sound
dlstnbutlon of the costs and benefits of airport development
The resolution that IS recommended for approval IS based on the resolution which was
presented by the Mayor of EI Segundo at the City CounCil meeting on September 22, 1998
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BUDGET/FINANCIAL IMPACT
Approval of this resolution will have no Impact on the budget Funds for review and
comment on the LAX Master Plan are available In account 01-700-274-00000-5506-00000
RECOMMENDATION
It IS recommended that the City Council adopt a resolution calling for the development of a
Regional Airport Plan for Southern Callforma
Prepared by Suzanne Fnck. Director
Andy Agle, Deputy Director
Plannmg and Community Development Department
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4. Opportunities and Options
CahfomIa's electnc utility rates have Increased dramat1cally over the last 15 to 20 years and are
currently 30% to 50% hIgher than US average and by far the highest of any state outsIde of the
~ortheastem US8 Because of the teclullcal feasIbIlIty of mdustry restIUctunng and customer
resentment over the hIgh rates, Assembly BLlI 1890 was passed In September 1996 by the
CahfomIa legIslature ThIS bIll was deSIgned to restructure the electnc Industry mto a
competitive marketplace It IS Important to note that through tlus legIslatIOn, resIdentIal and
small commerCIal accounts are already guaranteed a 10% reductIon from 1996 rates, and those
reduced rates cannot mcrease for four years or untIl the mvestor owned utllltIes (lQUs) collect
theIr stranded Investments The state mandated all electnclty customers of the lOUs to pay a
competition tranSItIon charge (CTe) to allow the 10Us to recoup theIr stranded costs
Of the group that has expressed an Interest m a CIty led aggregation program (the City and seven
other entitIes), 128 meters meet the reqUIrement for the 10% dLscount for automatIc saVIngs of
over S 15,0009 The resIdentIal sector should realIze automatlC annual savmgs on the order of
$2 5 mIlhon ThIS dIscount 1S guaranteed and will be prov1ded even If a customer chooses dIrect
access Any savmgs aclueved through competItive supphes are In addItion to tlus dIscount.
\Vlllle the new legIslatIOn presents opportunItIes for savmgs, It IS Important to understand that
not all of a customer's electnc supply costs are subject to competItIon. The dlstnbutIOn and
transmISSIon functions of the electnc utllIty mdustry remam regulated and generally under
monopoly control Only the generation functIon was opened to competItIon and Lt IS that portIon
that IS referred to as dIrect access By recognIzmg that the generatlon portIOn accounts for as
lIttle as 20% to 25% of the total energy costs a customer sees on the utIlIty bIll, It is easy to
understand why many new cost saving optIOns lrntlally have lImIted potentIal
Customers can also inVestIgate alternatIve cost savmg measures that prOVIde more sIgmficant
short-term savIngs than solely chOOSing a competItive energy suppher These optIons mclude
Lmplementmg mdIvIdual measures to reduce transnussIOn and dlstnbutlon charges (wluch may
account for 20% to 40% of a customer's total energy bIll), makmg use of effiCIency servIces that
wtll reduce the total amount of energy consumptIon, and shIftmg energy usage to more
advantageous time penods. These strategIes often have larger savmgs potentlal than dIrect access
and are descnbed m greater detwl below
4.1. Direct Access
Under the new market structure, electncIty customers In Cahfonua have two optIons for
obtammg electnc generation (power supply) servIces pursumg dIrect access by purchasmg
energy from a competItIve energy servIce supplIer (ESP) or relymg on the local utIlIty
dIstnbutlon company (UDC) to purchase electncIty for them from the Power Exchange (PX).
· Based U S Department of EnergylEnergy Informanon AdnurustratIon data
9 Southern Cahfomla EdIson'!; Rule 22 states all reSIdentIal customers and those small commerCIal customers on
GS-1, TOU-GS-l and TOU-EV.3 are ehgIble for the 10% dISCOunt The S15,OOO IS based on 10% off of 1997
bIllmgs
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whIch are expected to expenence the greatest growth In population and employment over
the next twenty years, while LAX IS located near the communities expected to expenence
the least growth In the same penod, and
WHEREAS, developing airport capacity near hlgh-growth commumtles rather than
concentrating airport development at LAX may be an environmentally supenor and more
cost effective and equitable strategy for serving future growth In aIr commerce In
Southern California, and
WHEREAS, the development of these regional airport resources will help spread
Jobs and economic development opportumtles more equitably throughout the region,
while redUCing the public health and environmental burdens on commUnities near LAX,
NOW. THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES HEREBY RESOLVE AS FOLLOWS'
SECTION 1 The City Council of the City of Santa Momca hereby calls upon the
commumtles of Southern California, Including the City of Los Angeles and the Counties of
Los Angeles, Orange, San BernardinO, Riverside and Ventura, the State of California and
our congressional representatives to JOin together In developmg a Regional Airport Plan
for Southern CalifornIa that constrains LAX to operate within the capacity of Its eXisting
facilities and develops the capacity of many other commercial airports In Southern
Callfornra to serve the expanding air commerce marketplace
SECTION 2. The CIty Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be In full force and effect
APROVED AS TO FORM'
i\l r fld; I" l ~
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Marsha Jane; outne
City Attorney
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Adopted and approved this 13th of October, 1998
d~
Robert Holbrook, Mayor
1, Mana M Stewart. CIty Clerk of the City of Santa Momca. do hereby certIfy that
the foregoing Resolution 9327 (eCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 13th of October, 1998 by the follOWing vote
Ayes Council members
Ebner, Feinstein, Genser, Holbrook, O'Connor
Noes Councllmembers
None
Abstain Councllmembers
None
Absent Councllmembers
Rosenstein
ATTEST
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Marra M Stewart, City Clerk