1. Presentation to Citizens Advisory Council February 2, 2010 Van Nuys Part 161 / Phaseout Study

2. www.hmmh.com 2 Major Project Milestones 1990: BOAC resolution proposes non-addition rule, one- hour curfew extension, and noisier aircraft phaseout 2003: Part 150 proposes Part 161 for seven restrictions 2005: HMMH receives notice-to-proceed on Part 161 study 2006: City Council / Mayor approve VNY Master Plan with additional Part 161 alternatives – including phaseout 2006: BOAC resolution readopts noisier aircraft phaseout Directs staff to pursue phaseout on a dual track 2009: FAA recognizes phaseouts P. 161 grandfather status 2009: LAWA completes EIR for grandfathered phaseout Recommends City Council adopt grandfathered phaseout 2009: HMMH completes first round benefit-cost analyses 2009: HMMH completes first draft Part 161 submission 2/3/2010: City Council Trade Commerce and Tourism Committee scheduled to consider grandfathered phaseout

3. www.hmmh.com 3 Proposed Part 161 Alternatives Two primary sources: Part 150 and Master Plan studies Dual-track EIR addressed two alternatives: Grandfathered Stage 1 and 2 phaseout Noisier aircraft phaseout (affects Stage 3 hushkitted 727s) Alternative Source P. 150AMP 1. Incentives / disincentives in rental rates 2. Incentives / disincentives in landing fees 3. Mandatory Fly Friendly Program with fines 4. Maximum 77 dBA daytime noise limit 5. Limit number of based Stage 3 jets 6. Non-emergency jet and helicopter curfew 10 pm - 7 am (arr. and dep.) 7. Cap or phase out helicopter fleet 8. Phase out Stage 2 aircraft in shortest possible time 9. Extend curfew to 9 am on Sat., Sun., and holidays 10. Prohibit use by habitual violators of noise regulationsAlready in noise ordinances 11. Fines for violations of noise regulations

4. www.hmmh.com 4 Major Provisions of Grandfathered Phaseout Updated implementation schedule Exemptions: Stage 3 and 4 aircraft Government and emergency operations Aircraft permanently departing VNY after 12/31/15 Maintenance, major repair, and alteration operations until 1/1/16 (under same provisions as in Non-Addition Rule) Historic aircraft first flown prior to 1950 Former military aircraft first flown after 1949 until 1/1/16 BOAC to review historic exemptions every 10 years Four-step phaseout schedule Original DateNew DateDecibel Level January 1, 1991January 1, 2009 85 dBA January 1, 1993January 1, 2011 83 dBA January 1, 1996January 1, 2014 80 dBA January 1, 1998January 1, 2016 77 dBA

5. www.hmmh.com 5 Noisier aircraft - Draft submission complete Stage 1 and 2 ban Noise-based rental rates Noise-based landing fees 77-dBA daytime departure limit Grandfathered Stage 1 and 2 phaseout Noisier aircraft phaseout St. 1 and 2 fixed-wing / St. 1 helicopter ban Curfews Full non-emergency curfew Extend curfew to 9 a.m. Saturdays, Sundays, and holidays Helicopters Cap helicopter operations Phase out helicopter operations Fines for violation of fly-friendly program Stage 3 non-addition rule Part 161 Alternatives Fall into Five Groups These three alternatives were added to comply with Part 161 These four alternatives are Part 150 study recommendations

6. www.hmmh.com 6 Review of Part 161 Approval Requirements FAA approves Stage 3 restrictions based on six findings: Restriction is reasonable, nonarbitrary, and nondiscriminatory Restriction does not place unreasonable burden on commerce Restriction maintains safe and efficient use of airspace Restriction does not conflict with a U.S. law or regulation Adequate opportunity has been provided for public comment Restriction does not place unreasonable burden on the national aviation system FAA approves Stage 2 analysis and notice processes In practice, FAA has required grant-obligated airports to comply with six Stage 3 conditions Second condition requires that benefits must exceed costs Benefits must be monetized Cannot count benefit from noise transferred to other airports

7. www.hmmh.com 7 Benefit-Cost Comparison for Noisier Aircraft Options Estimated Net Present Value of Benefits and Costs of Grandfathered Stage 1 and 2 Ban, Noisier Aircraft Phaseout, and Related Part 161 Alternatives RestrictionBasis Estimated Net Present Value of Benefits and Costs Grandfathered PhaseoutEIR$1.4 M Noisier Aircraft PhaseoutEIR$1.2 M Stage 1 and 2 BanPart 161$6.1 M Noise-Based Rental RatesPart 161$6.1 M Noise-Based Landing FeesPart 161$5.9 M 77 dBA Daytime LmaxPart 161$5.9 M St. 1 and 2 Fixed-Wing & St. 1 Helicopter BanPart 161$6.1 M Note: Part 161 net present values do not include costs of completing Part 161 submission, obtaining FAA approval, conducting EIR, or related delays.

8. www.hmmh.com 8 Benefits and Costs of Other Part 161 Alternatives Full non-emergency curfew – costs exceed benefits Costs to jet operators alone: $13.5M Estimated benefit associated with all night operations: $8.6 M Extend curfew to 9 a.m. Saturdays, Sundays, and holidays No effect on CNEL (so no benefit), because it is likely operations and noise would simply shift to other daytime hours Cap or phaseout helicopter operations No benefit by FAA accounting practice, because operations and noise would shift to other airports Fines for violation of fly-friendly program Program has been highly successful; 2.2 dB average improvement FAA considers this type of rule unsafe and is unlikely to approve Recommend adopting lower targets and continuing voluntary effort Stage 3 non-addition rule No benefit by FAA accounting practice, because operations and noise would shift to other airports

9. www.hmmh.com 9 Potential Part 161 Statutory Condition Issues Burbank decision indicates FAA will apply conditions in a highly demanding fashion FAA recognition of Stage 1 and 2 phaseouts grandfather status suggests absence of statutory concerns for that rule Curfew and helicopter options, and Stage 3 non-addition would likely fail burden on commerce test because costs > benefits Jet and helicopter curfew, helicopter cap or phaseout, and Stage 3 non-addition would likely fail nondiscriminatory test because rules are based on non-noise characteristics Burbank ruling suggests FAA is likely to find diversions under curfew, helicopter cap or phaseout, and Stage 3 non-addition would interfere with safe and efficient use of airspace and create undue burden on national aviation system Burbank and Naples rulings suggest that FAA would consider fly friendly with fines arbitrary and unreasonable because of success of voluntary program

10. www.hmmh.com 10 Discussion