Amended in Senate July 2, 2014

Amended in Assembly May 8, 2014

Amended in Assembly April 10, 2014

Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2395

Introduced by Assembly Member Lowenthal

(Principal coauthor: Assembly Member Gorell)

(Principal coauthor: Senator Jackson)

February 21, 2014

An act to add Section 6087 to the Harbors and Navigation Code, relating to harbor districts.

LEGISLATIVE COUNSEL’S DIGEST

AB 2395, as amended, Lowenthal. Oxnard Harbor District: infrastructure projects: funding.

(1) Existing law prescribes procedures for the formation of harbor districts, and sets forth the powers of a district with regard to the operation, management, and development of harbor facilities in a district. Existing law authorizes the board of a harbor district, among other things, to borrow up to $1,000,000 for the purposes of acquiring land for constructing or operating any work, project, or certain authorized facilities or for the making of improvements or the purchase of equipment for the maintenance of those facilities, as prescribed.

This bill would, notwithstanding that borrowing limit, authorize the Oxnard Harbor District to borrow money begin delete and incur indebtedness and to accept financial or other assistance from the state or federal government, if the proposed borrowing is not in excess of 15% of the district’s total assets, specified, as described, is considered at a public hearing, and is approved by a end delete begin delete 2⁄3 end delete begin delete vote of the members of the board of harbor commissioners for the district. The bill would authorize the district to expend any funds made available to the district pursuant to those provisions for the acquisition of any interests in lands, as specified, and for projects involving the acquisition, construction, development, ownership, and leasing of port facilities, infrastructure, or other projects, as described end delete begin insert by issuance of promissory notes, or execute conditional sales contracts to purchase personal property, in an amount or of a value not exceeding in the aggregate at any one time the sum of $10,000,000, for the purposes of acquiring land for or constructing or operating any authorized work, project, or facility, or for the making of any improvement, or the purchase of equipment or for the maintenance of that equipment, in accordance with prescribed procedures end insert .

(2) This bill would make legislative findings and declarations as to the necessity of a special statute for the Oxnard Harbor District.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature hereby finds and declares all of
the following:

(a) The Oxnard Harbor District owns and operates the Port of
Hueneme. Although the Port of Hueneme is the only deep-water
port between the major Pacific Ocean ports of northern and
southern California, its depth at present is only 35 feet at mean
lower low water (MLLW). A depth of at least 40 feet at MLLW
is necessary to provide the port with the capacity to accommodate
a wider variety of vessels to meet anticipated demands. As a result,
the Oxnard Harbor District needs to finance several significant
infrastructure projects over the next several decades to expand the
limited capacity of the port.

(b) The existing one-million-dollar ($1,000,000) limit on the
borrowing of money set forth in Section 6084 of the Harbors and
Navigation Code impedes the Oxnard Harbor District’s ability to
develop the infrastructure and systems necessary to continue the
development of the Port of Hueneme to expand the port’s capacity
and meet anticipated demands.

(c) In December 2013, the Oxnard Harbor District successfully
implemented the Shoreside Power Project, which will dramatically
cut pollutants from vessel emissions particle matter (PM) by 92
percent, nitrous oxide emissions by 98 percent, and greenhouse
gas emissions (carbon dioxide) by 55 percent, over the life of the
project. Further, the project will benefit shippers, truckers, terminal
operators, dock workers, and regional and national transportation
systems by extending the useful life of existing wharfs for up to
30 years.

(d) In Spring, 2012, the Oxnard Harbor District commissioned
a series of white papers as part of its commitment to providing the
maximum possible economic and social benefits to the people and
communities served by the Port of Hueneme. This commitment
includes a responsibility to address the environmental impacts of
port operations. The white papers are meant to help the port build
an environmental management program, and address all of the
following focus areas:

(1) Community engagement.

(2) Water quality.

(3) Marine resources.

(4) Air quality.

(5) Soil and sediment.

(6) Sustainability.

(e) The white papers that are described in subdivision (d)
document important accomplishments already achieved by the
Oxnard Harbor District, including all of the following:

(1) Active participation in community events and activities.

(2) Receipt of a $4.5 million shoreside power grant for air
quality improvements.

(3) Implementation of phase 1 of a stormwater improvement
plan.

(4) Partnering with the United States Navy and the United States
Corps of Engineers (USACE) to construct the Confined Aquatic
Disposal Cell.

(5)  begin delete Actively end delete begin insert Active end insert monitoring begin insert of end insert water quality to mitigate
impacts to marine life.

(6) Replacement of conventional diesel-fueled maintenance
vehicles with low-emission propane-fueled trucks.

(f) Operations and activities at the Port of Hueneme contribute
meaningfully, qualitatively, and quantitatively to the economic
health and vitality of southern California and the rest of the state.
It has been estimated that approximately 10,226 jobs statewide are
either directly or indirectly related to activities at the Port of
Hueneme, and the regional agricultural, automobile, and oil and
gas industries in this state rely on the workers employed in these
jobs and the port’s daily operations.

(g) The Oxnard Harbor District does not levy, or expend any
funds generated by, local taxes, as most of its operations are funded
directly through fees and other revenue the port generates from its
users or tenants, and from occasional state and federal grants.

SEC. 2.  

Section 6087 is added to the Harbors and Navigation
Code, to read:

begin delete

6087.  

(a) (1) Notwithstanding any other provision of this part,
the Oxnard Harbor District may borrow money and incur
indebtedness under this section and may accept financial or other
assistance from the state or federal government.

(2) (A) The district shall not borrow an amount in excess of 15
percent of its total assets, as determined based on the estimated
value of the assets included in the Port of Hueneme Comprehensive
Annual Financial Report.

(B) The district shall, prior to commencing any action to borrow
funds under this section, conduct a public hearing during which
the proposed borrowing is considered.

(C) The district shall not seek to borrow any funds under this
section unless the proposed borrowing is approved by a 2⁄3 vote
of the members of the board of harbor commissioners for the
district.

(b) The district may expend any funds made available to the
district pursuant to subdivision (a) for the acquisition of any interest
in lands, in accordance with Section 6075, and for the acquisition,
construction, development, ownership, and leasing of port facilities,
infrastructure, and other projects, including, but not limited to,
harbor deepening, and for any other buildings, plants, equipment,
aids, facilities, and improvements necessary for, or incident to, the
accommodation and promotion of commerce and fisheries in the
district.

end delete begin insert

begin insert 6087. end insert   

(a) (1) Notwithstanding the borrowing limit set forth
in Section 6084, the Oxnard Harbor District may borrow money
by issuance of promissory notes, or execute conditional sales
contracts to purchase personal property, in an amount or of a
value not exceeding in the aggregate at any one time the sum of
ten million dollars ($10,000,000), for the purposes of acquiring
land for and constructing or operating any work, project, or facility
authorized by subdivision (d) of Section 6012 or Section 6075 or
for the making of improvements or the purchase of equipment or
for the maintenance thereof.

(2) All moneys borrowed pursuant to this section shall not be
borrowed for a term exceeding five years, and the indebtednesses
shall not incur a rate of interest in excess of 12 percent per annum.
The indebtedness shall be authorized by a resolution of the board
of commissioners adopted by a two-thirds vote of the members of
the board.

(3) As a condition precedent to the borrowing of any money or
the execution of any conditional sales contract, as provided in this
section, in excess of one hundred thousand dollars ($100,000), the
board shall first by a two-thirds vote approve by resolution and
have on file a report on the engineering and economic feasibility
relating to the project contemplated for the expenditure of the
borrowed money or conditional sales contract. The feasibility
report shall be prepared and signed by an engineer or engineers
licensed and registered under the laws of the State of California.

(4) The district shall budget, levy, and collect taxes and pay for
all indebtedness without limitation by any other provision of this
part.

(b) Subdivision (a) does not apply to any money borrowed from
any agency or department of the United States government or of
the State of California.

end insert

SEC. 3.  

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique circumstances applicable only
to the Oxnard Harbor District.