City Airports, Harbor, and Water and Power Departments

IMPARTIAL SUMMARY BY SHARON M. TSO, CHIEF LEGISLATIVE ANALYST City Charter Section 607 places limitations on franchises, concessions, permits, licenses and leases for each Proprietary Department (Airports Department, Harbor Department, and the Department of Water and Power). Section 607(a) provides that the City Council may authorize a lease term of up to 50 years for the Airports Department and Department of Water and Power, and 66 years for the Harbor Department. City Charter Section 630 provides that the Board of Airport Commissioners shall consist of seven members, and that one member shall reside in the area surrounding Los Angeles International Airport and one member shall reside in the area surrounding Van Nuys Airport. These areas are defined by ordinance. City Charter Section 651 provides that the Board of Harbor Commissioners shall have possession, management, and control of Harbor Department assets. It further specifies that the lands and waters under possession, management, and control of the Board of Harbor Commissioners shall be known as the Harbor District. City Charter Section 651 also reserves water frontage for public use, and prohibits the sale of the tidelands and submerged lands of the Harbor District. City Charter Section 652 states the powers and duties of the Board of Harbor Commissioners, including the power and duty to establish rules and regulations related to the Harbor District. State law requires a Coastal Development Permit for many developments within the Harbor District. This includes construction projects and projects that meaningfully increase or change the level or type of activity on a site or in the water, or that change public access to it, even if nothing is built. This measure would amend the City Charter to: ● Allow the City Council to authorize Airports Department and Department of Water and Power leases for a term up to 66 years, or the maximum length allowed by any federal or state law, whichever is less, if the City Council makes a finding that a term longer than 30 years would be in the best interest of the City. The City Charter already allows the City Council to authorize Harbor Department leases for a term up to 66 years. ● Increase local residency requirements for the Board of Airport Commissioners by requiring that three of the seven members of the Board of Airport Commissioners reside in the area surrounding the Los Angeles International Airport and that two of the seven members reside in the area surrounding Van Nuys Airport. The measure would also allow the City Council to, by ordinance, further divide these areas into subareas and establish commissioner residency requirements. ● Require the Board of Harbor Commissioners to annually allocate a portion of the operating income of the Harbor Department for waterfront public access projects and other public serving projects and programs developed with public input as part of a Public Access Investment Plan. The Board of Harbor Commissioners would have the sole authority to determine the amount to allocate each year. ● Require all applicants seeking approval of a lease, lease extension, or lease amendment, or any proposed development of property within the Harbor District that requires a Coastal Development Permit, to submit a workforce impact disclosure that provides an assessment of estimated workforce effects associated with the proposed action, including employment and economic impacts. The Board of Harbor Commissioners may exempt small businesses and nonprofit organizations from providing an economic impact analysis. This measure will become effective if approved by a majority of voters.

FINANCIAL IMPACT STATEMENT BY MATTHEW W. SZABO, CITY ADMINISTRATIVE OFFICER This measure amends the City Charter as follows: Lease Length - Extends maximum lease terms for Los Angeles World Airports and Department of Water and Power from 50 to 66 years, aligning them with the Harbor Department. This amendment is cost-neutral. Airport Board Composition – Increases the local residency representation from one to three members and one to two members for the areas surrounding LAX and Van Nuys Airport, respectively. This amendment is cost-neutral. Harbor Public Access Investment Plan (PAIP) - Codifies the Harbor Department’s annual practice of allocating 10 percent of its operating income to the PAIP for waterfront projects and programs. The historical annual allocation to the PAIP is approximately $28.6 million. Workforce Impacts - Mandates all applicants seeking Harbor District lease approvals, extensions, amendments, or Coastal Development Permits to submit a self-funded workforce impact disclosure assessing regional economic and employment effects. This amendment is cost-neutral.

ARGUMENT IN FAVOR OF CHARTER AMENDMENT PRT VOTE YES ON MEASURE PRT to strengthen community representation, protect local investments, and ensure greater accountability from Los Angeles’ proprietary departments. From East Los Angeles to the Westside, from the Port to the Valley, representation matters deeply to the communities we serve–and especially to those who live and work alongside our airports and waterfront. Measure PRT ensures that the neighborhoods most affected by airport operations have a stronger voice in local decisions. By increasing the number of geographically representative Airport Commissioners from two to five, the measure gives residents impacted by aircraft noise, traffic, and congestion the direct representation they deserve on the Airport Commission. At the Port of Los Angeles, Measure PRT memorializes important existing commitments in the City Charter. It codifies requirements to consider and disclose how leases and agreements may impact local jobs and our workforce, ensuring those consequences remain part of the public decision-making process. It also protects the Port’s commitment to investing in waterfront public access by codifying existing investment plans in the Charter. These investments help ensure that communities hosting one of the nation’s busiest ports continue to share in the benefits of our working waterfront. Measure PRT also modernizes leasing authority for the Department of Water and Power and the Los Angeles World Airports, providing greater flexibility for responsible long-term investments and critical infrastructure while maintaining public oversight. Communities that host our airports and port operations contribute enormously to Los Angeles. They deserve representation, transparency, and a lasting commitment to local investment. VOTE YES ON MEASURE PRT–from East Los Angeles to the Westside, from the Port to the Valley, representation and community accountability matter. PERSONS SIGNING ARGUMENT IN FAVOR OF CHARTER AMENDMENT PRT TIM MCOSKER IMELDA PADILLA Councilmember, District 15 Councilwoman, District 6 City of LA City of LA TRACI PARK GINA MARTINEZ Councilwoman, District 11 Wilmington Community Advocate City of LA PAULA GEREZ DAVID YANOWITZ President Van Nuys Community Advocate Westchester/Playa Neighborhood Council NO ARGUMENT AGAINST THIS MEASURE WAS SUBMITTED. Arguments printed are the opinions of the authors and are not checked for accuracy by any City agency. In addition, the title beneath a signer’s name is for identification purposes only and does not indicate that the individual is signing on behalf of the organization.