Bill Text: CA AB3119 | 2017-2018 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: San Diego International Airport Mobility and Sustainability Committee: airport mobility and sustainability plan.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2018-08-06 - In committee: Hearing postponed by committee. [AB3119 Detail]

Download: California-2017-AB3119-Amended.html

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Amended  IN  Assembly  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 3119

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Introduced by Assembly Member Gonzalez Fletcher

February 16, 2018

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An act to amend Section 451 of Sections 170000, 170002, 170006, 170052, and 170056 of, to amend the heading of Division 17 (commencing with Section 170000) of, to add Sections 170085 and 170086 to, to repeal Sections 170032, 170044, 170058, 170062, and 170084 of, to repeal Chapter 2 (commencing with Section 170010) of Division 17 of, and to repeal and add Section 170004 of, the Public Utilities Code, relating to public utilities. the San Diego Unified Port District consolidation.

LEGISLATIVE COUNSEL'S DIGEST

AB 3119, as amended, Gonzalez Fletcher. Public utilities: rates. San Diego Unified Port District consolidation.

(1) Existing law establishes the San Diego Unified Port District and prescribes the functions, duties, and powers of the port district with regard to the acquisition, construction, maintenance, development, and regulation of the Port of San Diego, other tidelands and submerged lands, and navigable water surrounding the port within the port district’s jurisdiction, as specified. Existing law establishes the San Diego County Regional Airport Authority, as a local government entity of regional government, with specified jurisdiction extending throughout the County of San Diego, and prescribes the functions, duties, and powers of the authority relating to the operation, management, and development of the San Diego International Airport and airport facilities.

This bill would enact the San Diego Unified Port Consolidation Act to consolidate the San Diego County Regional Airport Authority into the San Diego Unified Port District, and would specify that the port district is the successor to, and is vested with the powers, functions, and jurisdiction of the authority. The bill would provide that all title, ownership, and interests of the authority, including, but not limited to, the San Diego International Airport and its supporting facilities owned and held by the authority is vested in the port district. The bill would require the port district to appoint an audit committee, comprising specified members, to meet at least 4 times per year and carry out duties relating to the conduct of the port district’s accounting, audit, and performance monitoring processes, as described. The bill would repeal, amend, and add various provisions to effectuate the consolidation and would make related changes. By imposing new duties on a local government entity with regard to the consolidation of the authority and operation and management of the San Diego International Airport, this bill would impose a state-mandated local program.

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law authorizes the Public Utilities Commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires a public utility to furnish and maintain such adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities as are necessary to promote the safety, health, comfort, and convenience of its patrons, employees, and the public.

This bill would make nonsubstantive changes to these provisions.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

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Bill Text

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

SECTION 1.

 The heading of Division 17 (commencing with Section 170000) of the Public Utilities Code is amended to read:

DIVISION 17. SAN DIEGO COUNTY REGIONAL AIRPORT AUTHORITY UNIFIED PORT CONSOLIDATION ACT

SEC. 2.

 Section 170000 of the Public Utilities Code is amended to read:

170000.

 This division shall be known and may be cited as the San Diego County Regional Airport Authority Unified Port Consolidation Act.

SEC. 3.

 Section 170002 of the Public Utilities Code is amended to read:

170002.

 There is hereby established the San Diego County Regional Airport (a) The San Diego County Regional Airport Authority, as a local governmental entity of regional government, with established by Section 170002, as it read on December 31, 2018, is hereby consolidated into the San Diego Unified Port District. In addition of the port district’s jurisdictional authority before January 1, 2019, the port district shall have jurisdiction extending throughout the County of San Diego. Diego, as specified in this division.

(b) The San Diego Unified Port District is the successor to, and is vested with, the powers, functions, and jurisdiction of the former San Diego County Regional Airport Authority. Unless the context requires otherwise, whenever the term “San Diego County Regional Airport Authority” appears within any statute, it shall be deemed a reference to the San Diego Unified Port District.

SEC. 4.

 Section 170004 of the Public Utilities Code is repealed.

170004.

The Legislature finds and declares all of the following:

(a)Airports help to link local, regional, statewide, national, and global economic activities. Airports are also essential features of comprehensive transportation systems, that include streets and highways, rail transit, transit over water, and mass transit.

(b)It is essential to the public health, safety, and welfare that airports be developed and operated in the San Diego County region so that those airports promote economic development, protect environmental quality, and enhance social equity.

(c)The significant regional consequences of airport planning, development, and operations require the creation of a regional airport authority.

SEC. 5.

 Section 170004 is added to the Public Utilities Code, to read:

170004.

 (a) The Legislature finds and declares the following:

(1) The consolidation of the former San Diego County Regional Airport Authority into the San Diego Unified Port District will facilitate the planning necessary to properly mitigate traffic, flooding, and other potential risks and impacts, and will prevent interagency disputes that arise because of traffic, flooding, and other potential environmental risks and impacts.

(2) The San Diego Unified Port District owns and is the trustee of the lands underlying the San Diego International Airport, the tidelands adjacent to the San Diego International Airport, and large segments of the primary roadways that provide access to the San Diego International Airport.

(3) The establishment of the San Diego Unified Port District was affirmed by the voters of the port district’s five member cities, which include San Diego, Chula Vista, Coronado, National City, and Imperial Beach, and the port district owned and operated the San Diego International Airport until the Legislature, without voter approval, created the San Diego County Regional Airport Authority and transferred the ownership and operation of the San Diego International Airport to the San Diego County Regional Airport Authority.

(4) A primary purpose of creating the San Diego County Regional Airport Authority was to find an alternate site location for the San Diego International Airport, and to place a measure on the ballot to seek voter approval for such an alternate site. However, in 2006, the voters of the County of San Diego rejected the San Diego County Regional Airport Authority’s ballot proposal.

(5) Returning management and control of the San Diego International Airport to the San Diego Unified Port District would effectuate the intent of the residents of the County of San Diego to vest the authority to operate the airport with the port district.

(b) It is the intent of the Legislature to consolidate the San Diego County Regional Airport Authority into the San Diego Unified Port District, and to empower the port district with the powers and authority of the San Diego County Regional Airport Authority in addition to the powers and authority held by the port district before January 1, 2019.

SEC. 6.

 Section 170006 of the Public Utilities Code is amended to read:

170006.

 For the purposes of this division, the following terms have the following meanings, unless the context requires otherwise.

(a) The “authority” “Authority” means the San Diego County Regional Airport Authority established under this division. Unified Port District established under the San Diego Unified Port District Act (Chapter 67 of the First Extraordinary Session of the Statutes of 1962).

(b) The “board” “Board” and “board of directors” means the governing board of the authority established as specified in Chapter 2 (commencing with Section 170010). Board of Commissioners of the San Diego Unified Port District.

(c)The “consolidated agency” means the authority resulting from the consolidation of the San Diego Association of Governments and the transit boards pursuant to Chapter 3 (commencing with Section 132350) of Division 12.7.

(d)The “east county cities” means the Cities of El Cajon, La Mesa, Lemon Grove, and Santee.

(e)The “north county coastal cities” means the Cities of Carlsbad, Del Mar, Encinitas, Oceanside, and Solana Beach.

(f)The “north county inland cities” means the Cities of Escondido, Poway, San Marcos, and Vista.

(g)The “port”

(c) “Port,” “port district,” or “district” means the San Diego Unified Port District established under the San Diego Unified Port District Act (Chapter 67 of the Statutes of 1962, First Extraordinary Session). Session of the Statutes of 1962).

(h)

(d) The “San Diego International Airport” means the airport located at Lindbergh Field in the County of San Diego.

(i)The “south county cities” means the Cities of Chula Vista, Coronado, Imperial Beach, and National City.

SEC. 7.

 Chapter 2 (commencing with Section 170010) of Division 17 of the Public Utilities Code is repealed.

SEC. 8.

 Section 170032 of the Public Utilities Code is repealed.

170032.

(a)The authority may sue and be sued in all actions and proceedings, in all courts and tribunals of competent jurisdiction.

(b)All claims for money or damages against the authority are governed by Part 3 (commencing with Section 900) and Part 4 (commencing with Section 940) of Division 3.6 of Title 1 of the Government Code.

SEC. 9.

 Section 170044 of the Public Utilities Code is repealed.

170044.

Except as otherwise specifically provided to the contrary in this chapter, a recorded majority vote of the total membership of the board of directors is required on each action.

SEC. 10.

 Section 170052 of the Public Utilities Code is amended to read:

170052.

 The authority shall be responsible for developing all aspects of airport facilities that it operates, including, but not limited to, all of the following:

(a) The location of terminals, hangars, aids to air navigation, Runway Protection Zones (RPZ), Airport Influence Areas (AIA), parking lots and structures, intermodal connections on airport property, and all other facilities and services necessary to serve passengers and other customers of the airport. directly and substantially related to the air transportation of passengers or property.

(b) Street and highway access improvements serving the airport facility, and access, ingress, and egress with the objective of minimizing, to the extent practicable, traffic congestion on access routes or vehicle miles traveled in the vicinity of the airport.

(c) Providing for public mass transportation access in cooperation and coordination with the responsible public transportation agency in whose jurisdiction the airport is located.

(d) Analyzing and developing intercity bus and passenger rail access to terminals in cooperation with an established agency or organization experienced in developing and operating that service, if the service or the technology proposed for implementation is demonstrated to be in regular, scheduled revenue service and is demonstrated to be a cost-effective investment when considering both direct and indirect benefits. If that service is proven feasible, the authority shall endeavor to maximize the convenience of its patrons by incorporating the service into the design of its terminals.

(e) Improvements, including, but not limited to, airport facility projects, to protect the San Diego International Airport from potential environmental risks and impacts.

SEC. 11.

 Section 170056 of the Public Utilities Code is amended to read:

170056.

 The port shall transfer all title and ownership of the San Diego International Airport to the authority consistent with the terms of the transfer under Section 170060 and shall include, but need not be limited to, all of the following: All of the title, ownership, and interests of the former San Diego County Regional Airport Authority, including, but not limited to, those of the San Diego International Airport and its supporting facilities owned or held by the former San Diego County Regional Airport Authority, shall vest in the port district, which may record an instrument to accurately reflect the title and ownership interest in any facilities of the airport in the records of the San Diego County Recorder’s Office, including, but not limited to, the following:

(a) All interest in real property and improvements, including, but not limited to, all terminals, runways, taxiways, aprons, hangars, Runway Protection Zones (RPZ), Airport Influence Areas (AIA), emergency vehicles or facilities, parking facilities for passengers and employees, facilities, above and below ground utility lines and connections, easements, rights-of-way, other rights for the use of property necessary or convenient to the use of airport properties, and buildings and facilities used to operate, maintain, and manage the airport which is consistent with the Airport Layout Plan (ALP) dated September 13, 2000, and identified as Drawing No. 724 on file with the clerk of the port, subject to paragraphs (1), (2), and (3). port.

(1)The following real properties shall not be transferred and shall remain under the ownership and control of the port:

(A)All property originally leased to General Dynamics Corporation and identified in Document No. 12301 on file with the clerk of the port.

(B)Property subleased by the port from TDY Industries, Inc., c/o Allegheny Teledyne (formerly Teledyne Ryan Aeronautical) and identified as Document No. 17600 on file with the clerk of the port.

(C)Property leased to Solar Turbines, Incorporated for parking along Pacific Highway and identified as Document No. 39904 on file with the clerk of the port (Parcel No. 016-026).

(D)Property leased to Solar Turbines, Incorporated, for parking along Laurel Street and identified as Document No. 29239 on file with the clerk of the port (Parcel No. 016-016 - Parcel 2).

(E)Property leased to Sky Chefs, Incorporated, located at 2450 Winship Lane and identified as Document No. 37740 on file with the clerk of the port (Parcel No. 012-025).

(F)(i)Property located at Parcel No. 034-002 and identified as Pond 20. The port shall retain ownership of Pond 20 and shall reimburse the airport fund for the fair market value of that property. The fair market value shall be determined by appraisal and negotiation. If there is no agreement following that negotiation, then the amount of payment shall be determined by arbitration.

(ii)On January 1, 2003, the port shall commence repayment to the airport of the negotiated or arbitrated fair market value for the property. The repayment schedule shall be a 10-year amortized payment plan with interest based upon the rate of 1 percent above the prevailing prime rate.

(2)The following additional real properties shall be transferred from the port to the authority:

(A)Property

(b) All interest in the real property and improvements adjacent to Pond 20 located at Parcel Nos. 042-002 and 042-003 (this parcel encompasses approximately two or three acres).

(B)Property

(c) All interest in the real property and improvements acquired as Parcel No. 034-001 from Western Salt Processing Plant and identified as Document No. 39222 from GGTW, LLC.

(3)The following nonairport, real properties that presently provide airport-related services shall also be excluded from any land transfer to the authority:

(A)Airport employee parking lot located at Harbor Island Drive and Harbor Island Drive East identified as District Parcel No. 007-020.

(B)Airport taxi and shuttle overflow lot located at the southeast corner of North Harbor Drive and Harbor Island Drive identified as District Parcel No. 007-025.

(C)Property leased to National Car Rental System, Incorporated, located east of the southeast corner of North Harbor Drive and Harbor Island Drive identified as District Parcel No. 007-034.

(D)Property leased to The Hertz Corporation located east of the southeast corner of North Harbor Drive and Harbor Island Drive identified as District Parcel No. 007-035.

(E)Property leased to Avis Rent-A-Car Corporation located at the southwest corner of North Harbor Drive and Rental Car Roadway identified as District Parcel No. 007-036.

(F)Property leased to National Car Rental System, Incorporated, located at the southeast corner of North Harbor Drive and Rental Car Roadway identified as District Parcel No. 007-038.

(G)Property leased in common to National Car Rental System, Incorporated; The Hertz Corporation; and Avis Rent-A-Car Corporation known as Joint-Use Roadway identified as District Parcel No. 007-037.

(H)Property leased to Jimsair, Incorporated, located on the property previously known as the General Dynamics Parcel, south of Sassafras Street and west of Pacific Highway adjacent to the Airport Operation Area identified as District Parcel No. 016-042.

(I)Property leased to Budget Rent A Car of San Diego located at both the northeast and southwest corners of Palm Street and Pacific Highway identified as District Parcel No. 016-001 (Parcel 1 and 2).

(J)Property leased to Budget Rent A Car of San Diego located east of the northeast corner of Palm Street and Pacific Highway identified as District Parcel No. 016-001 (Parcel 3).

(K)Property leased to Lichtenberger Equipment, Incorporated, located north of the northeast corner of Palm Street and Pacific Highway identified as District Parcel No. 016-034.

(L)Property leased to Park and Ride, Incorporated, located at the northeast corner of Sassafras and Pacific Highway identified as District Parcel No. 016-038.

(M)Property leased to Ace Parking Management, Incorporated, located north of the intersection of Sassafras Street and Pacific Highway identified as District Parcel No. 016-040.

(N)Property leased to Federal Express Corporation located at the west end of the extension of Washington Street identified as District Parcel No. 015-008.

(b)

(d) All contracts with airport tenants, concessionaires, leaseholders, and others, including, but not limited to, fees from vehicle rental companies. companies, and collective bargaining agreements with labor organizations and employment contracts.

(c)

(e) All airport-related financial obligations secured by revenues and fees generated from the operations of the airport, including, but not limited to, bonded indebtedness associated with the airport. The authority shall assume obligations issued or incurred by the port for San Diego International Airport, including, but not limited to, any long-term debt, grants, and grant assurances.

(d)

(f) All airport-related financial reserves, including, but not limited to, sinking funds and other credits.

(e)

(g) All personal property, including, but not limited to, emergency vehicles, office equipment, computers, records and files, software required for financial management, personnel management, and accounting and inventory systems, and any other personal property owned by the port authority used to operate or maintain the airport.

(f)Notwithstanding any provision of this section, the port shall agree to lease for a period of 66 years, commencing on January 1, 2003, to the authority parcels 1, 2, and 3 of the property originally leased to General Dynamics (identified in Document No. 12301 on file with the clerk of the port) consisting of approximately 89.75 acres west of the Pacific Highway and including property leased to JimsAir (identified as Parcel #016-042), property leased to Federal Express Corporation (identified as Parcel #015-008) and the Park, Shuttle and Fly lot operated by Five Star Parking under a management agreement with the port (identified as Clerk Document No. 38334, dated March 29, 1999), subject to the following terms:

(1)The rent shall be paid monthly in arrears and the annual rent shall be level based on the fair market value of the property as of January 1, 2006, and a market rate of return on that date.

(2)The authority shall lease to the port at the same fair market value per square foot a total of not to exceed 250 parking spaces in reasonable proximity to the port’s administrative building located at 3165 Pacific Highway with the authority having a right to relocate or substitute substantially equivalent or better parking from time to time. The parties shall first meet and confer to determine by appraisal and negotiation the fair market value rent. If the authority and port do not reach agreement within 60 days after commencement of meetings for that purpose, either party may submit the matter to binding arbitration in San Diego in accordance with the Commercial Arbitration Rules of the American Arbitration Association. In the event airport operations cease to exist on the property leased to the authority pursuant to this section, control of the property will revert to the port as provided in Section 170060.

(3)All other terms of the ground lease shall be in accordance with reasonable commercial practice in the San Diego area for long-term real property ground leases.

SEC. 12.

 Section 170058 of the Public Utilities Code is repealed.

170058.

Property adjacent to the San Diego International Airport, owned by the port, and commonly referred to as the “General Dynamics Property” shall continue to be operated by the port.

SEC. 13.

 Section 170062 of the Public Utilities Code is repealed.

170062.

(a)The authority may, in its sole discretion, from time to time, enter into agreements with the port for services including, but not limited to, operations, maintenance, and purchasing, as the authority may find necessary or beneficial to facilitate the operation of San Diego International Airport.

(b)The authority shall have no obligation to purchase or procure any services, facilities, or equipment from or through the port. At no time shall the authority be obligated to purchase auditing, public affairs, and governmental relations, strategic planning, legal, or board support services from the port. However, the authority may elect to obtain these services and support in agreement with the port.

(c)Performance of all these services shall be subject to the direction and control of the authority, and shall be provided in accordance with specifications, policies, and procedures as communicated by the authority to the port from time to time. In all cases, the port shall provide services of sufficient quality, quantity, reliability, and timeliness to ensure that the authority can continue the operation, maintenance, planning and improvement of and for San Diego International Airport consistent with the standards and practices under which the airport is operated on the effective date of the act that added this subparagraph or higher standards as the authority may adopt, or as may be required in the authority’s judgment to meet the requirements of federal or state law, or the needs of the users of the airport for the safe, secure, and efficient operation of the airport. The authority also, from time to time, may establish performance standards for and may conduct financial or performance audits, or both, of all services provided by the port and all charges or claims for payment for the services provided.

(d)Services provided by the Harbor Police shall in no event be of less quality than the standard established for airport police services by the three other largest airports, based on annual passengers, in this state. The port shall cooperate fully, at its own cost, in any financial or performance audit, or both, conducted by, or on behalf of, the authority or by any government agency having jurisdiction.

(e)The authority shall reimburse the port for the actual and reasonable direct costs, including, but not limited to, an appropriate allocation of general and administrative expenses associated with the provision of that service, incurred by the port to deliver services actually provided to the authority in accordance with the standards and requirements described in this section. The port shall request payment for services on a monthly basis. Those requests shall provide details regarding each service or element thereof for which payment is requested as the authority reasonably may request. The authority shall have the right to review and approve any request for payment for those services. Payment shall be due and payable 30 days after the request provided all necessary supporting documentation is received by the authority.

(f)The San Diego Harbor Police Department shall remain under the jurisdiction of the San Diego Unified Port District, and employees shall incur no loss of employment or reduction in wages, health and welfare benefits, seniority, retirement benefits or contributions made to retirement plans, or other terms and conditions of employment as a result of enactment of this division. The San Diego Harbor Police Department shall have the exclusive contract for law enforcement services at San Diego International Airport during that time as the airport continues to operate at Lindbergh Field, and peace officers of the Harbor Police shall remain employees of the port.

SEC. 14.

 Section 170084 of the Public Utilities Code is repealed.

170084.

The authority shall assume and be bound by the terms and conditions of employment set forth in any collective bargaining agreement or employment contract between the port and any labor organization or employee affected by the creation of the authority, as well as the duties, obligations, and liabilities arising from, or relating to, labor obligations imposed by state or federal law upon the port. Aviation division employees of the port affected by this division shall become employees of the authority and shall suffer no loss of employment or reduction in wages, health and welfare benefits, seniority, retirement benefits or contributions made to retirement plans, or any other term or condition of employment as a result of the enactment of this division. No employee of the port shall suffer loss of employment or reduction in wages or benefits as a result of the enactment of this division.

SEC. 15.

 Section 170085 is added to the Public Utilities Code, to read:

170085.

 (a) Every employee of the former San Diego County Regional Airport Authority shall become an employee of the port district.

(b) In addition to any existing power granted in Section 23 of the San Diego Unified Port District Act (Chapter 67 of the First Extraordinary Session of the Statutes of 1962), the port district may also bring an action in all courts and tribunals of competent jurisdiction to determine the validity of any of its equipment trust certificates or other evidence of indebtedness pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.

(c) In addition to any existing power granted in Section 61 of the San Diego Unified Port District Act (Chapter 67 of the First Extraordinary Session of the Statutes of 1962), the port district may also do all of the following:

(1) Levy assessments, reassessments, or special taxes, and issue bonds related to (A) airport facilities projects and related operations and maintenance; and (B) other projects, including, but not limited to, operations and maintenance projects independent of construction projects that are necessary to carry out its duties and responsibilities pursuant to this act or the San Diego Unified Port District Act (Chapter 67 of the First Extraordinary Session of the Statutes of 1962).

(2) Levy assessments, reassessments, or special taxes, and issue bonds in accordance with the requirements of the Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code).

(3) Apportion any special benefit assessment levied by the port district on any basis in accordance with Section 61 of the San Diego Unified Port District Act (Chapter 67 of the First Extraordinary Session of the Statutes of 1962), and any county in which the port district is located may collect, at the request of the port district, all special benefit assessments levied by the port district, and cause those revenues to be deposited into the county treasury to the credit of the port district, as set forth in that section.

SEC. 16.

 Section 170086 is added to the Public Utilities Code, to read:

170086.

 (a) The board shall appoint members to an audit committee to serve as a standing committee for the port district. Each member of the committee shall be a voting member. The public members shall be appointed by the board for staggered three-year terms.

(b) The board shall select the three public members from among the following categories of persons, with no more than one appointee from each category at any one time:

(1) A professional with experience in the field of public finance and budgeting.

(2) An architect or civil engineer licensed to practice in this state.

(3) A professional with experience in the field of real estate or land economics.

(4) A person with experience in managing construction of large-scale public works projects.

(5) A person with public or private sector executive level decisionmaking experience.

(6) A person who resides within the airport influence area of the San Diego International Airport (Lindbergh Field).

(7) A person with experience in environmental justice as it pertains to land use.

(c) The board may appoint other persons to serve as nonvoting, noncompensated, ex officio members on the audit committee.

(d) In appointing the public members of the audit committee, the board shall provide for selection policies, appointment procedures, conflict-of-interest policies, length-of-term policies, and policies for providing compensation, if any.

(e) The audit committee shall serve as a guardian of the public trust, acting independently and charged with oversight responsibilities for reviewing the authority’s internal controls, financial reporting obligations, operating efficiencies, ethical behavior, and regular attention to cashflows, capital expenditures, regulatory compliance, and operations.

(f) The audit committee shall meet a minimum of four times per year and shall, at a minimum, do all the following:

(1) Regularly review the port district’s accounting, audit, and performance monitoring processes.

(2) At the time of contract renewal, recommend to the appropriate committee and the board its nomination for an external auditor and the compensation of that auditor, and consider at least every three years whether there should be a rotation of the audit firm or the lead audit partner to ensure continuing auditor independence.

(3) Advise the appropriate committee and the board regarding the selection of the auditor.

(4) Be responsible for oversight and monitoring of internal and external audit functions, and monitoring performance of, and internal compliance with, the port district policies and procedures.

(5) Be responsible for overseeing the annual audit by the external auditors and any internal audits.

(6) Make recommendations to the port district regarding paragraphs (1) to (5), inclusive.

(g) An affirmative vote by at least five members of the audit committee shall be required for approval of the annual internal and external audits, including performance monitoring, the auditor’s annual audit plan for each fiscal year submitted to the board for approval, and actions recommending or approving debt financing for the port district.

(Amended by Stats. 2013, Ch. 83, Sec. 8. (AB 1058) Effective January 1, 2014.)

SEC. 17.

 The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SEC. 18.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SECTION 1.Section 451 of the Public Utilities Code is amended to read:

451.

(a)All charges demanded or received by any public utility, or by any two or more public utilities, for any product or commodity furnished or to be furnished or any service rendered or to be rendered shall be just and reasonable. Every unjust or unreasonable charge demanded or received for such a product or commodity or service is unlawful.

(b)Every public utility shall furnish and maintain such adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities, including telephone facilities, as defined in Section 54.1 of the Civil Code, as are necessary to promote the safety, health, comfort, and convenience of its patrons, employees, and the public.

(c)All rules made by a public utility affecting or pertaining to its charges or service to the public shall be just and reasonable.