Amended  IN  Assembly  April 18, 2018
Amended  IN  Assembly  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 3119

Introduced by Assembly Member Gonzalez Fletcher

February 16, 2018

An act to amend 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 the San Diego Unified Port District consolidation. add Section 170019 to the Public Utilities Code, relating to the San Diego Regional Airport Authority.


LEGISLATIVE COUNSEL'S DIGEST


AB 3119, as amended, Gonzalez Fletcher. San Diego Unified Port District consolidation. International Airport Mobility and Sustainability Committee: airport mobility and sustainability plan.
(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. create the San Diego International Airport Mobility and Sustainability Committee, consisting of 7 members, as prescribed, and would require the committee, by January 1, 2020, to prepare and submit to the governing board of the authority and the Legislature a plan to address specific issues of mobility and sustainability related to the San Diego International Airport that impact multiple public agencies, including, but not limited to, issues relating to traffic congestion, unmet transit need of airport passengers and employees, and impacts of climate change and environmental factors, as specified. By imposing new duties on a local government entity local government entities with regard to the consolidation of the authority and operation and management of the San Diego International Airport, appointment to and participation on the committee, 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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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:
17.SAN DIEGO 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 Unified Port Consolidation Act.

SEC. 3.Section 170002 of the Public Utilities Code is amended to read:
170002.

(a)The San Diego County Regional Airport Authority, a local governmental entity of regional government 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, 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.
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)“Authority” means the San Diego 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)“Board” and “board of directors” means the Board of Commissioners of the San Diego Unified Port District.

(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 First Extraordinary Session of the Statutes of 1962).

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

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.
SEC. 9.Section 170044 of the Public Utilities Code is repealed.
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 directly and substantially related to the air transportation of passengers or property.

(b)Street and highway improvements serving the airport facility, and access, ingress, and egress with the objective of minimizing, to the extent practicable, traffic congestion 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.

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, 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.

(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).

(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.

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

(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.

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

(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 authority used to operate or maintain the airport.

SEC. 12.Section 170058 of the Public Utilities Code is repealed.
SEC. 13.Section 170062 of the Public Utilities Code is repealed.
SEC. 14.Section 170084 of the Public Utilities Code is repealed.
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.

SECTION 1.

 Section 170019 is added to the Public Utilities Code, to read:

170019.
 (a) The San Diego International Airport Mobility and Sustainability Committee is hereby created, consisting of seven members, as follows:
(1) A member of the board of directors of the San Diego Association of Governments, appointed by that board, or his or her designee.
(2) A member of the City of San Diego Metropolitan Transit Development Board, appointed by that board, or his or her designee.
(3) A member of the North San Diego County Transit Development Board, appointed by that board, or his or her designee.
(4) A member of the Board of Port Commissioners of the San Diego Unified Port District, appointed by that board, or his or her designee.
(5) A member of the Board of Directors of the San Diego Regional Airport Authority, appointed by the board, or his or her designee, who shall serve as the chairperson of the committee.
(6) A representative of the City of San Diego, appointed by the City Council of the City of San Diego.
(7) A representative of the County of San Diego, appointed by the Board of Supervisors of the County of San Diego.
(b) By January 1, 2020, the committee shall prepare and submit to the board of directors and the Legislature a plan to address specific issues of mobility and sustainability related to the San Diego International Airport that impact multiple public agencies including, but not limited to, all of the following:
(1) Increased congestion of roadways near the airport, including North Harbor Drive.
(2) Unmet transit needs of airport passengers and employees and the potential to increase the share of airport passengers utilizing public transit.
(3) The impacts of climate change and environmental factors such as sea level rise and flooding.
(c) A majority of the members of the committee shall constitute a quorum.
(d) A recorded vote of a majority of the total membership of the committee is required for the committee to take any action.

SEC. 18.SEC. 2.

 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.