BILL ANALYSIS �
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| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2013-2014 Regular Session |
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BILL NO: AB 2395 HEARING DATE: June 10, 2014
AUTHOR: Lowenthal URGENCY: No
VERSION: May 8, 2014 CONSULTANT: Bill Craven
DUAL REFERRAL: Governance and FinanceFISCAL: No
SUBJECT: Oxnard Harbor District: infrastructure projects:
funding.
BACKGROUND AND EXISTING LAW
Existing law establishes procedures for harbor districts to
borrow up to $1,000,000 for the purposes of acquiring land for
constructing or operating any work, project, or facilities. This
level of indebtedness must be authorized by a resolution adopted
by a two-thirds vote of the board of a harbor district. Existing
law also prohibits the term of a loan of funds from exceeding
five years and from incurring a rate of interest exceeding 12%.
PROPOSED LAW
This bill would increase the amount that the Oxnard Harbor
District (District) can borrow and incur indebtedness from $1
million to 15% of the District's total assets, and establish the
procedures for doing so. It authorizes the District to borrow in
an amount of up to 15% of its total assets, as determined based
on the estimated values of the assets included in the Port of
Hueneme Comprehensive Annual Financial Report (CAFR).
Prior to any such borrowing, the District would hold a public
hearing.
Any such borrowing is subject to a 2/3 vote of the board.
The borrowed funds may be spent for the acquisition of any
interest in lands pursuant to current law, 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
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and fisheries in the District.
ARGUMENTS IN SUPPORT
According to the author, "This bill authorizes the District to
incur indebtedness beyond a $1 million cap set in statute 30
years ago. This limitation does not accurately or adequately
account for the needs and escalated project costs of a modern
port competing in a global market.
She adds that the Port of Hueneme is the only deep water port on
the Pacific between the major ports of southern and northern
California. Although a deep water port, at a depth of only 35
feet MLLW (mean lower low water), the Port is limited in its
activities and applications. At least 40 feet MLLW is necessary
to accommodate the Port's anticipated needs into the next
several decades."
The port has identified several projects, including harbor
deepening, that it would like to undertake. It estimates that an
increase in shipping containers, bulk items, auto, aggregate,
and fish could add more than 2000 jobs in the region and
generate significant local revenue and tax dollars. These
projects will require debt financing well beyond the limitation
set forth in existing law, according to the District, which also
supports this measure.
The District provided estimates for the following infrastructure
projects: Deepening dredge and associated wharf improvements at
$8 to $12 million, shore power phase 2 at $2 million,
dockside/tank farm rail at $1 to $3 million, life cycle repairs
costs to restore capability to wharfs, parking areas and
structures at $10 million, and high mast lighting upgrades at
$500,000.
ARGUMENTS IN OPPOSITION
None received.
SUPPORT
Port of Hueneme/Oxnard Harbor District
California Special Districts Association
OPPOSITION
None Received
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