Management's memo doesn't disclose that internal documents, obtained by LBREPORT.com under the CA Public Records Act, show that LB Airport management began working in 2013 to facilitate JetBlue's desire for international flights, and in 2013 the Airport-commissioned a feasibility study that indicated mixed results as a business matter. The Airport-commissioned feasibility study also didn't address potential unintended consequences, including the possibility of losing the City's Airport ordinance which currently protects the city from round the clock flights in unlimited numbers.
The internal documents show Airport management focused on the issue entirely as a business matter for the Airport (Airport revenue, costs, operations, etc.) without serious reference to potential impacts on residents or the City if, as an unintended consequence, it were to lose its protective Airport ordinance. Under federal law, the City can't use direct Airport revenue from Airport flights for police, fire, parks, libraries or other General Fund services outside of Airport property. The City receives spin-off revenue from items like sales taxes (for souvenirs, food, drinks etc.) and hotel room tax if travelers stay in LB which most don't. LB's largest General Fund revenue source is secured property tax, including from homeowners.
The internal documents show JetBlue stated on more than one occasion that it planned to adhere to the limits of LB's Airport ordinance if it were allowed international flights. However at no point -- either in the "feasibility study" already commissioned by the Airport or in any other internal documents provided under the Public Records Act to LBREPORT.com -- were unintended consequences of allowing international flights seriously discussed by Airport or city management, including the potential loss of the City's protective Airport Ordinance that would leave the City with unlimited numbers of take-offs and landings at all hours allowed on all runways.
Likewise, city management's July 7 agendizing memo for Council consideration doesn't mention the issue at all.
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As previously reported by LBREPORT.com, in February 2015, Long Beach City Prosecutor -- and former LB Airport Advisory Commission member -- Doug Haubert testified at the Airport Advisory Commission that allowing international flights could create an unintended consequence in giving international operators other than JetBlue an economic incentive to challenge and potentially strike down LB's protective ordinance. If even one challenge were successful, Long Beach would permanently lose its current ability to protect itself from unlimited take-offs and landings at all hours (no nighttime protections) and those flights could be on any runway, including those now limited mainly to small aircraft.
City management and the City Attorney's office have stated publicly that the city's Airport ordinance is an extremely valuable City asset and the City should take no actions that would put it at risk, but in 2001 the City did exactly that. In an eerie parallel to the current proposal, under then-Mayor O'Neill and then-City Manager Henry Taboada, the City held discussions with (then-new operator) JetBlue kept secret from the public, after which city management agendized an item proposing to let carriers hold slots longer before flying them [which didn't mention JetBlue but would accommodate the company as a then-new carrier.] City management, and the City Attorney's office, assured the Council that the action didn't touch the Ordinance itself (which was technically true) and simply changed rules for allocating available flight slots under the ordinance. The Council approved the recommended action 8-1 (Carroll dissenting)...and within days, JetBlue took all the vacant large aircraft slots, instantly filling them. That triggering threatening statements, and ultimately an administrative action, by a number of other carriers that could have cost LB its Airport ordinance.
The Mayor and Councilmembers hurriedly held public meetings in Bixby Knolls/Cal Hts and Los Altos, to tell alarmed residents that the City still supported the Airport ordinance. Of greater significance, the City Attorney's office wisely retained expert Aviation Counsel, and ultimately -- with the cooperation of JetBlue, the City managed to resolve the issue. For their part, alarmed residents voted out two establishment-backed Council incumbents in 2004 (including the Councilmember who'd dissented on the action.)
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Although Airport and city management have publicly portrayed their recent discussions with JetBlue on a customs facility as preliminary, internal documents (obtained last year by LBREPORT.com under the Public Records Act, show that LB's now-exited Airport manager [who exited in early 2014 to take a positions at Indianapolis Int'l Airport] worked closely with the company during 2013 in seeking to advance the company's desire to change LB Airport to allow international flights, all without any public disclosure or voted Council authorization by LB's policy-setting City Council.
Airport management first hired a firm to perform a cost study. It then hired a second firm to conduct a feasibility study [which delivered mixed results; separate coverage coming on LBREPORT.] Airport management met high level federal officials who'd be in charge of granting permission for a customs facility.
In July and November 2013, Airport management sent two brief memos to the Council (not disclosed to the public at the time) summarizing its actions and advising in a Nov. 2013 memo that if a user airline submitted a proposal to the city, Airport staff would evaluate it and return it to the City Council with a recommendation.
In December 2013, JetBlue began sending Airport management drafts of "term sheets" discussing respective responsibilities and costs in pursuing a federal inspection facility. [Jan. 2014 proposed text recites that its terms wouldn't be binding on either LGB or JetBlue until a definitive agreement on the issues was approved by the City Council.] In January 2014, a JetBlue rep asking Airport management if the company should begin approaching Councilmembers.
By this time, the City was approaching citywide elections for Mayor and a new Council majority (districts 1,3,5,7 and 9)...and the process effectively stopped.
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City management, Airport management and then-incumbent Councilmembers [including some now in office] didn't disclose what was taking place...which might have made the issue relevant in 2014 citywide elections for Mayor and five Council representatives. For its part, JetBlue was more candid; a company rep acknowledged to a reporter in early 2014 that the company was indeed seeking international flights at LGB. LBREPORT.com then made a Public Records Act request (the first of several) which disclosed documents showing the true extent of what had taken place outside of public view...and we reported the story [to date not reported in similar detail by some other outlets.]
On February 17, 2015 the Council held a study session on its protective Airport ordinance. The City Attorney's office acknowledged that the Airport Ordinance is an extremely valuable asset to the City that must be protected, but testimony by Assistant City Attorney Mike Mais was less than clear about the potential unintended consequences of allowing international flights. At one point, Mr. Mais told Councilmembers (accurately) that the ordinance doesn't distinguish between domestic and international flights...but didn't go further to explain what could result if the new category of international operators was invited to seek flight slots not currently available under LB's Airport ordinance.
Two days later, on Feb. 19, 2015, City Prosecutor Doug Haubert spoke with greater clarity to the Airport Advisory Commission. In public testimony reported by LBREPORT.com and to our knowledge not detailed elsewhere, Mr. Haubert stated that allowing international flights could create an unintended consequence in giving international operators other than JetBlue an economic incentive to challenge and potentially strike down LB's protective ordinance. If even one challenge resulted in striking down the Ordinance, Long Beach would permanently lose its current ability to protect itself from unlimited take-offs and landings at all hours (no nighttime protections) and those 24 flights could be on any runway, including those now limited mainly to small aircraft. LBREPORT.com coverage, click here.
On February 23. 2015, JetBlue sent a letter to Airport management, signed by Rob Land, the company's Senior Vice President for Government Affairs and Associate General Counsel, stating that the company "requests the Airport and the City of Long Beach apply to the United States Department of Homeland Security, Customs and Border Protection for a User Fee Airport designation and seek the approval to establish Customs facilities at the Long Beach Municipal Airport, pursuant to the provisions of Title 19, United States Code section 58b."
[JetBlue Feb. 23, 2015 letter] Following the Council Study Session held recently on the Airport Noise Ordinance, and with no nexus whatsoever between enhancing the Airport with a modest Customs facility and in any way disturbing the sanctity or legality of the Ordinance, JetBlue requests the City seek the presence of U.S. Customs for purposes of processing aircraft under the Customs User Fee Airport program...JetBlue will utilize only its current allotment of assigned Air Carrier slots and existing aircraft parking positions to fly internationally in addition to our current 11 domestic markets.International flights at LGB, operated by JetBlue, or any other carrier that holds allocated slots, and consistent with the Airport's Noise Ordinance, will greatly enhance the stature of the City of Long Beach, improve international economic opportunities through increased tourism, commerce and conventions and foster greater cultural ties throughout the region. Further, the general aviation community will be able to avail itself of international travel opportunities while also operating within the existing Noise Ordinance limitations and restrictions. Like international commercial flights, international general aviation flights will bring new economic and corporate opportunities to the City of Long Beach.
JetBlue has been a model corporate citizen in Long Beach and a steadfast supporter of the Noise Ordinance since our inaugural flight nearly 14 years ago. We look forward to working closely with the City to immediately proceed with the application process and begin work required to secure an international flight designation for the City of Long Beach.
On March 3, 2015, the Council voted 4-3 on an item agendized by Councilmembers Al Austin and Roberto Uranga to direct the City Mgr to withhold further staff work on a proposed Customs facility at LB Airport until 60 days after new 4th dist. Councilmember is seated.
The motion directed the City Manager to return to the Council to receive direction in publicly cast Council vote(s) on how to proceed re a proposed a Customs facility that would enable international lights by JetBlue...and potentially others. The vote was: Yes: Price, Uranga, Austin, Richardson; No: Lowenthal, Mungo, Andrews [4th dist vacant, Gonzalez out on maternity leave.]
Councilwoman Mungo and Vice Mayor Lowenthal sought to have staff continue work it had been doing for roughly two years basically in secret. Mungo said she wanted to use what she called resulting staff "data" as a basis for conducting public outreach meetings...although Airport management's studies focused nearly entirely on fiscal costs/benefits to the Airport, not impacts on homeowners, pollution, property values, property tax revenue stemming from potential risks to the City's protective Airport Ordinance. Councilmembers Austin and Uranga pressed their original intent, which they described as having a Council-driven process (in contrast to a Mungo-Lowenthal substitute which sought to continue a staff driven process.
Councilwoman Mungo stated in written text she read aloud: "A delay of an additional three weeks [sic: three months] is pandering to this crowd because it's insignificant in a three year plan, which will take an exuberant amount of time."
In public testimony, multiple speakers (included retired 8th dist. Councilwoman Rae Gabelich, John Deats (Los Cerritos), Rick Ivey (Los Cerritos), Joe Sopo (Los Altos), opposed international flights. JetBlue's Rob Mitchell opposed slowing "the fact-finding studies and lengthy conversations that need to start now to carry out the project in a timely manner." Aeroplex Aviation's Curt Castagna supported staff continuing its work as did former Airport Advisory Commission member Ron Salk (2000-08.)
In April, Daryl Supernaw was elected to the 4th Council district seat and took office in early May.
On July 7, a City Council will decide on the risks versus asserted benefits of allowing a Customs facility at the City's Airport that could enable international flights by JetBlue...and potentially others.
The Council meeting is scheduled to begin at 7 p.m...two hours later than usual. LBREPORT.com will (as always) provide LIVE coverage on our front page (www.LBREPORT.com.)
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