BILL NUMBER: SB 1896 CHAPTERED
BILL TEXT
CHAPTER 978
FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2002
APPROVED BY GOVERNOR SEPTEMBER 26, 2002
PASSED THE SENATE AUGUST 30, 2002
PASSED THE ASSEMBLY AUGUST 28, 2002
AMENDED IN ASSEMBLY AUGUST 27, 2002
AMENDED IN ASSEMBLY JULY 2, 2002
AMENDED IN SENATE MAY 15, 2002
AMENDED IN SENATE APRIL 29, 2002
AMENDED IN SENATE APRIL 17, 2002
INTRODUCED BY Senator Peace
FEBRUARY 22, 2002
An act to amend Sections 170004, 170006, 170010, 170012, 170016,
170018, 170024, 170026, 170038, 170042, 170048, 170052, 170056,
170058, 170062, 170064, 170068, 170070, 170072, 170076, 170078,
170082, and 170084 of, to repeal Sections 170058.5, 170059, and
170080 of, and to repeal and add Sections 170028, 170060, and 170066
of, the Public Utilities Code, relating to airports, and declaring
the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 1896, Peace. San Diego County Regional Airport Authority.
(1) Existing law establishes the San Diego County Regional Airport
Authority as a local entity of regional government with jurisdiction
throughout the County of San Diego, and requires that the authority
adopt a comprehensive airport land use plan for that county and
coordinate the airport planning of public agencies. Existing law
requires the authority to study and plan any improvements,
expansions, or enhancements for the regional airport system in San
Diego County. Existing law provides for a permanent authority board
consisting of 9 members appointed by specific appointing authorities
with 3 members of that board serving as an executive committee.
Existing law provides a structure of the authority, requires the San
Diego Unified Port District (port) to transfer the San Diego
International Airport to the authority on December 2, 2002, assigns
various powers and duties to the authority regarding the
establishment and operation of airports within the county, including
the requirement that the authority assume trusteeship of airport
lands and exercise the power to issue bonds with interest thereon
being tax free. Existing law provides for a transition plan and
provides for an interim executive director until January 6, 2003.
Existing law authorizes the authority to issue revenue bonds in
accordance with existing statutes.
This bill would substantially revise the duties of the authority
including, but not limited to, requiring the authority to implement,
as well as study and plan, any improvements, expansions, or
enhancements at existing and future airports under its jurisdiction.
This bill would revise the appointing authorities to the board and
would provide that the executive committee is responsible for
overseeing the implementation of the administrative policy of the
authority but would prohibit the executive committee from being
included in the direct operation of the airport or in the chain of
command for emergency purposes. The bill would require the
appointment of the initial executive committee members on or before
December 5, 2002, to be seated by December 16, 2002, and would
establish the base salary of committee members to be commensurate
with that of superior court judges in the County of San Diego. The
bill would extend the term of office of the interim executive
director until January 6, 2004, or until the time that a permanent
executive director is appointed, whichever occurs first. The bill
would also require the authority to adopt a comprehensive plan on the
future of San Diego's regional international airport and the
authority would be required to submit the particular airport site
recommendation in the form of a local ballot proposition to the San
Diego County Registrar of Voters for placement on either the November
2, 2004, or the November 7, 2006, countywide election ballot.
The bill would recast the provisions governing the transfer of
real and personal property by the port to the authority including
specifically described real properties that are not to be transferred
and specifically described real properties that are to be
transferred.
The bill would require the port, rather than the authority, to
retain trusteeship of the lands underlying the airport, consistent
with the State Lands Commission's requirement and would require the
port to execute a described 66-year lease with the authority. The
bill would require the transfer of the San Diego International
Airport to be completed on or after December 16, 2002, rather than on
December 2, 2002, subject to specific terms of transfer including,
among other things, the services of port employees, including the
Harbor Police. The bill would provide for the lead agency status
with regard to the California Environmental Quality Act during the
transfer period and would provide for the transfer from the port to
the authority of a noise variance issued by the Department of
Transportation.
The bill would require the port to fund the authority from airport
operation revenues for not less than $1,000,000 each year until that
time that the transfer of the airport and assorted revenue sources
have been completed.
The bill would recast the provisions governing the issuance of
revenue bonds by the authority, including refunding bonds.
The bill would delete the tax-exempt interest provisions and would
prohibit any other agency from applying for grants for funding
airport facilities in San Diego County unless the application is
first approved by the authority.
The bill would prohibit an employee of the port from suffering
loss of employment or reduction in wages or benefits as a result of
the enactment of the San Diego County Regional Airport Authority Act.
The bill would permit employees of the authority to be eligible for
retirement benefits under the California Public Employees'
Retirement System, and, where permitted by the law governing that
system, to receive full reciprocity with public employees' retirement
systems in which they previously participated.
The bill would make technical, conforming changes.
To the extent that additional duties would be placed upon the
authority, the port district, and other entities of local government,
the bill would impose a state-mandated local program.
The bill would provide that its provisions are severable.
(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, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
(3) The bill would declare that it is to take effect immediately
as an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 170004 of the Public Utilities Code is amended
to read:
170004. The Legislature hereby finds and declares all of the
following:
(a) The population in San Diego County is forecasted to grow to
4.1 million persons by 2030, a 45-percent increase over its
population in 2000. In light of this growth, it is incumbent upon
the region to take actions to provide for an economy that will
maximize employment opportunities and help to ensure a higher quality
of life for all its residents.
(b) The globally competitive, export-oriented electronics,
communications, and biotechnology industries of San Diego County
already employ over 300,000 persons, nearly a third of the local
labor force, and will continue to drive the region's economy as it
competes in the expanding national and international markets.
(c) Air transportation will be an important factor in fostering
continued economic growth in San Diego County, as technology workers
travel by air 40 percent more frequently than workers in other
sectors of the economy.
(d) According to the Joint Aviation Advisory Committee established
by the San Diego Association of Governments and the San Diego
Unified Port District, San Diego International Airport today
contributes about $4.3 billion to the San Diego regional economy,
which is about 4 percent of the total output of the region's economy.
With the demand for air travel expected to more than double to 35
million passengers in 2030, an airport capable of supporting that
demand would contribute up to $8 billion to the regional economy.
Failure to increase San Diego's regional airport capacity would
result in 56,000 fewer jobs and up to $2.5 billion less in personal
income by 2030. More than 50 percent of the reduction in jobs would
occur in the industries related to air exports, including the
high-technology industries that manufacture machinery, electronic
equipment, and instruments. The balance of the impact would be in
the visitor-related industries.
(e) The San Diego Regional Government Efficiency Commission was
established under Chapter 764 of the Statutes of 2000 to evaluate
regional governance in San Diego County and to submit a report to the
Legislature for improving regional governance. To facilitate its
purpose, that commission formed a Port Working Group, a Governance
Working Group, a Transportation Working Group, and an Environmental
and Land Use Working Group to examine regional governance in the
region and to propose options for its improvement. The Port Working
Group studied the role and function of the San Diego Unified Port
District and in collaboration with the Transportation Working Group
created a special joint committee to examine airport development
issues in the region. After reviewing the options developed by the
joint committee, the commission has recommended to the Legislature,
by resolution adopted on July 6, 2001, that a new airport authority
be created by statute in San Diego County.
(f) Because of the significant regional consequences of airport
development and operations, it is important that the future
development of major airport facilities in San Diego County be
addressed in the context of a regional decisionmaking process that
has regional representation.
(g) In an effort to assure the continued military readiness of the
United States Department of Defense (DOD), comprehensive airport
planning must consider and protect military airspace needs in the San
Diego region. The activities of the DOD in the San Diego region
require mission-essential airspace for training and operations. In
addition, the DOD has direct economic expenditures in San Diego
County of nearly $10 billion annually, and represents over 376,000
residents of the region. For these reasons, the DOD is a major
stakeholder in the region's comprehensive plans for a viable airport
solution.
SEC. 2. 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" means the San Diego County Regional Airport
Authority established under this division.
(b) The "board" means the governing board of the authority
established as specified in Section 170016.
(c) The "interim board" means the limited term board established
as specified in Section 170012.
(d) The "port" 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).
(e) The "San Diego International Airport" means the airport
located at Lindbergh Field in the County of San Diego.
(f) (1) The "east area cities" mean the Cities of El Cajon, Lemon
Grove, La Mesa, and Santee.
(2) The "north coastal area cities" mean the Cities of Carlsbad,
Del Mar, Encinitas, Oceanside, San Marcos, and Solana Beach.
(3) The "north inland area cities" mean the Cities of Poway,
Escondido, Vista, and San Marcos.
(4) The "south area cities" mean the Cities of Coronado, Imperial
Beach, Chula Vista, and National City.
SEC. 2.5. Section 170010 of the Public Utilities Code is amended
to read:
170010. The interim executive director of the authority shall be
that person who is the Senior Director of Aviation of the port on
September 1, 2001. The interim executive director shall undertake
all regular and necessary measures and decisions for the efficient
operation of the authority until January 6, 2004, or until the time
that a permanent executive director is appointed, whichever occurs
first.
SEC. 3. Section 170012 of the Public Utilities Code is amended to
read:
170012. (a) There shall be an interim board of the authority to
advise the interim executive director, to prepare and adopt the
transition plan required under Section 170062, and to oversee the
activities required pursuant to subdivisions (c), (d), (e), and (f)
of Section 170048.
(b) The interim board shall be chaired by the interim executive
director.
(c) The interim executive director shall appoint five members to
the interim board. The members shall be geographically
representative of San Diego County and shall be serving as elected
officials of, appointees to, or representatives of local, state, or
federal governmental agencies or bodies, at the time of their
respective appointment.
(d) The first meeting of the interim board shall be on January 7,
2002, at a time and location to be determined by the chair.
Thereafter, the chair shall hold monthly public meetings of the
interim board.
(e) The interim board shall be dissolved on December 2, 2002.
SEC. 4. Section 170016 of the Public Utilities Code is amended to
read:
170016. (a) The permanent board shall be established pursuant to
this section. The board shall consist of nine members, as follows:
(1) The Mayor of the City of San Diego, or a member of the city
council designated by the mayor to be his or her alternate.
(2) A member of the public appointed by the Mayor of the City of
San Diego. The initial term for this member shall be two years.
(3) (A) The initial appointment for the north coastal cities shall
be the mayor of the most populous city, as of the most recent
decennial census, among the north coastal area cities. If that mayor
declines to serve, he or she shall appoint a member of the public
who is a resident of one of north coastal area cities. The initial
term for this member shall be four years.
(B) For subsequent appointments, the mayors of the north coastal
cities shall select the member. The appointment shall alternate
between a mayor and a member of the public from these cities to
follow the initial appointment made under this paragraph.
(4) (A) If the member serving under paragraph (3) is a mayor, the
initial appointment from the north inland cities shall be a member of
the public selected by the mayors of the north inland area cities
from one of those cities.
(B) If the person serving under paragraph (3) is not a mayor, then
the mayors of the north inland area cities shall select a mayor of a
north inland area city. The initial term of this member is two
years.
(C) For subsequent appointments, the mayors of the north inland
area cities shall select the member. The appointment shall alternate
between a mayor and a member of the public from these cities to
follow the initial appointment made under this paragraph.
(5) (A) The mayor of the most populous city, as of the most recent
decennial census, among the south area cities. If that mayor
declines to serve, he or she shall appoint a member of the public who
is a resident of one of south area cities. The initial term for
this member shall be six years.
(B) For subsequent appointments, the mayors of the south area
cities shall select the member. The appointment shall alternate
between a mayor and a member of the public from these cities to
follow the initial appointment made under this paragraph. The
initial term of this member is four years.
(6) (A) If the member serving under paragraph (5) is a mayor, then
a member of the public shall be selected by the mayors of the the
east area cities from one of those cities.
(B) If the person serving under paragraph (5) is not a mayor, then
the mayors of the east area cities shall select a mayor of an east
area city. The initial term of this member is two years.
(C) For subsequent appointments, the mayors of the east area
cities shall select the member. The appointment shall alternate
between a mayor and a member of the public from these cities to
follow the initial appointment made under this paragraph.
(7) The three remaining positions shall be the members of the
executive committee appointed pursuant to Section 170026.
(b) The board shall appoint the chair, who shall serve as chair
for a two-year portion of his or her term as a board member. A
member may be appointed to consecutive terms as chair.
(c) (1) Members of the first board appointed pursuant to
subdivision (a), other than members identified in paragraph (7) of
subdivision (a), shall be appointed on or before October 31, 2002,
and shall be seated as the board on December 2, 2002.
(2) Any appointment not filled by the respective appointing
authority on or before December 1, 2002, shall be appointed by the
Governor, consistent with the eligibility requirements of this
section for that membership position.
(d) (1) After the initial term, all terms shall be four years,
except as otherwise required under subdivision (b) of Section 170018.
(2) The expiration date of the term of office shall be the first
Monday in December in the year in which the term is to expire.
SEC. 5. Section 170018 of the Public Utilities Code is amended to
read:
170018. (a) The appointing authority for a member whose term has
expired shall appoint that member's successor for a full term of four
years.
(b) The membership of any member serving on the board as a result
of holding another public office shall terminate when the member
ceases holding the other public office.
(c) Any vacancy in the membership of the board shall be filled for
the expired term by a person selected by the respective appointing
authority for that position.
SEC. 6. Section 170024 of the Public Utilities Code is amended to
read:
170024. (a) (1) Members shall be paid one hundred dollars ($100)
per regular, special, or committee meetings, for not more than four
meetings per month.
(2) Any member may waive the payment or payments described in
paragraph (1).
(b) Members of the board may be paid for direct out-of-pocket
expenses.
(c) The board shall adopt a compensation, benefits, and
reimbursement policy within three months of being constituted.
(d) Employees of the authority are eligible for retirement
benefits under the California Public Employees' Retirement System
(CalPERS), and where permitted by the law governing that system,
shall receive full reciprocity with public employees' retirement
systems in which they previously participated.
SEC. 6.2. Section 170026 of the Public Utilities Code is amended
to read:
170026. (a) The board shall appoint the following officers of the
authority:
(1) Executive Director.
(2) General Counsel.
(3) Auditor.
(b) The executive director shall appoint all other officers and
employees, including, but not limited to, the deputy executive
director.
SEC. 6.8. Section 170028 is added to the Public Utilities Code, to
read:
170028. (a) The executive committee of the authority is
responsible for overseeing the implementation of the administrative
policy of the authority. The executive committee members may not be
included in the direct operation of the airports, nor may they be
included in the chain of command for purposes of emergency
procedures. The executive committee shall conduct monthly meetings
with the executive director and executive staff to review the
operations of the authority. Any policy recommendations from the
executive committee shall be forwarded to the board for consideration
at a public meeting of the board.
(b) Three members of the public shall be appointed to the
executive committee as follows:
(1) A member of the public, who shall be appointed by the
Governor, and confirmed by the Senate, who resides in the County of
San Diego, but not within the City of San Diego. The initial term of
this member is four years.
(2) A member of the public who shall be appointed by the Sheriff
of the County of San Diego, and confirmed by the San Diego County
Board of Supervisors, who is a resident of an unincorporated area of
the county. The initial term of this member is four years.
(3) A member of the public who shall be appointed by the Mayor of
the City of San Diego, and confirmed by a majority vote of the San
Diego City Council, who shall be a resident of that city. The
initial term of this member is four years.
(c) The appointment of the initial members of the executive
committee shall occur on or before December 5, 2002, and those
members shall be seated on December 16, 2002.
(d) Except as to the term of the initial appointments, the term of
office of an executive committee member is four years.
(e) Members of the executive committee shall receive a base salary
commensurate to that of superior court judges in the County of San
Diego.
SEC. 7. Section 170038 of the Public Utilities Code is amended to
read:
170038. The authority may take by grant, purchase, devise, or
lease or otherwise acquire, hold, enjoy, lease, and dispose of, real
and personal property within or outside its area of jurisdiction in
order to further its purposes.
SEC. 8. Section 170042 of the Public Utilities Code is amended to
read:
170042. The board may act only by ordinance or resolution for the
regulation of the authority and undertaking all acts necessary and
convenient for the exercise of the authority's powers. A majority of
the membership of the board shall constitute a quorum for the
transaction of business.
SEC. 8.5. Section 170048 of the Public Utilities Code is amended
to read:
170048. (a) The authority shall have the exclusive responsibility
within its area of its jurisdiction to study, plan, and implement
any improvements, expansion, or enhancements at existing or future
airports within its control.
(b) The authority may commission planning, engineering, economic,
and other studies to provide information to the board for making
decisions about the location, design, management, and other features
of future airports.
(c) The San Diego Association of Governments, or its successor,
shall cooperate with the authority to include all airport system
plans and facilities selected by the authority in the regional
transportation plan consistent with state and federal law.
(d) (1) Not later than March 1, 2002, the San Diego Association of
Governments and the port shall transfer and assign to the authority
all contracts in force for studying possible sites for an airport,
the economic viability and impact of an airport, the environmental
consequences of an airport, public opinion or attitudes regarding an
airport's location, and any other contracts related to the location
and development of an airport in the County of San Diego.
(2) The contracts described in paragraph (1) shall include, but
need not be limited to, the contracts associated with the Joint
Aviation Advisory Committee.
(3) The transfer of contracts required under this subdivision
shall include the contemporaneous transfer of revenue from state or
federal grants, local funds, and other sources of revenue committed
to funding the contracts until their completion. The authority shall
accept all obligations, as well as all rights, included in the
transferred contracts.
(e) The policy direction for the study described in subdivision
(d) shall become the responsibility of the authority. The authority
shall consider the concepts and ideas of the San Diego Association of
Governments, the port, and other entities, both public and private.
(f) The authority may continue the Joint Aviation Advisory
Committee to assist in conducting the analyses for determining a site
for a new airport.
(g) The authority, the San Diego Association of Governments, local
agencies, and the Department of Transportation shall cooperate to
develop effective surface transportation access to new and existing
airports.
(h) The authority shall adopt a comprehensive plan on the future
development of San Diego's regional international airport. In
developing its plan, the authority shall review all options of
alternative sites, including, but not limited to, expansion of the
existing airport site, use of current military installations that may
become available for civilian or mix-use, and other development
options available to address future airport needs. The authority
shall submit the particular site recommendation in the form of a
local ballot proposition to the San Diego County Registrar of Voters
for placement on either the November 2, 2004, or the November 7,
2006, countywide election ballot.
SEC. 9. 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, and all other facilities and services necessary
to serve passengers and other customers of the airport.
(b) Street and highway access and egress with the objective of
minimizing, to the extent practicable, traffic congestion on access
routes 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.
SEC. 10. 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 the transition plan
required under Section 170062 and shall include, but need not be
limited to, all of 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, 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).
(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 adjacent to Pond 20 located at Parcel Nos. 042-002
and 042-003 (this parcel encompasses approximately two or three
acres).
(B) Property 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 at 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) All contracts with airport tenants, concessionaires,
leaseholders, and others, including, but not limited to, fees from
vehicle rental companies.
(c) 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) All airport-related financial reserves, including, but not
limited to, sinking funds and other credits.
(e) 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 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 at the rate of four
million seven hundred thousand dollars ($4,700,000) for calendar year
2003, six million seven hundred thousand dollars ($6,700,000) for
calendar year 2004, and eight million seven hundred thousand dollars
($8,700,000) for calendar year 2005. Thereafter, the annual rent
shall be level, for the balance of the term, 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. 11. Section 170058 of the Public Utilities Code is amended to
read:
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. 12. Section 170058.5 of the Public Utilities Code is
repealed.
SEC. 13. Section 170059 of the Public Utilities Code is repealed.
SEC. 14. Section 170060 of the Public Utilities Code is repealed.
SEC. 15. Section 170060 is added to the Public Utilities Code, to
read:
170060. (a) The port shall retain trusteeship of lands underlying
the airport consistent with the State Lands Commission's requirement
and shall execute a 66-year lease with the authority for control of
the airport property. The authority shall pay one dollar ($1) per
year during the term of the lease, or until that time as airport
operations controlled by the authority cease to exist on the
property. At that time, the lease shall terminate and control of the
property shall revert to the port.
(b) (1) The port may continue or enter into contracts, memorandums
of understanding, or other agreements necessary to fulfill its
responsibilities as trustee of the lands underlying the airport or
adjacent lands under its control, or acquire additional lands within
its jurisdiction consistent with its duties and pursuant to Division
6 (commencing with Section 6001) of the Public Resources Code.
(2) (A) The port shall act as lead agency to certify any studies,
reports, or other documents necessary to fulfill its obligations as
trustee of the lands described in paragraph (1).
(B) Notwithstanding subparagraph (A) or any other provision of
law, until the date that the port transfers the airport to the
authority, the port and the authority, without the necessity of the
giving of any notice, filing of any documents, or the taking of any
other action, shall serve jointly as the lead agencies for the
purposes of the California Environmental Quality Act (Division 13
(commencing with Section 21000) of the Public Resources Code) and
regulations adopted thereto, including, but not limited to, the
filing of notices of exemption, initial studies, negative
declarations, and environmental impact reports. On and after the
transfer date, the authority, without the necessity of the giving of
any notice, filing of any documents, or the taking of any other
action, is the sole lead agency for any documents for which an
initial study has been commenced pursuant to Section 15063 of Title
14 of the California Code of Regulations or for which a notice of
preparation has been issued pursuant to Section 15082 of Title 14 of
the California Code of Regulations, regardless of whether or not a
notice of determination has been issued or a notice of completion has
been issued.
(C) The lead agency status described in this paragraph is
declaratory of existing law, and shall not in any respect be grounds
for any claim or finding of noncompliance by the port or the
authority, or both, with the California Environmental Quality Act
(Division 13 (commencing with Section 21000) of the Public Resources
Code) or regulations adopted under that act.
(3) Lands acquired by or added to lands under its trusteeship by
the port adjacent to the existing airport property and necessary to
operate the airport, including, but not limited to, lands from the
United States Marine Corp Recruit Depot for additional taxiways and
other airport related facilities, shall be included in the lease to
the authority as it is acquired by the port.
(c) The authority shall be responsible for making any necessary
application to the California Coastal Commission pursuant to the
California Coastal Act of 1976 (Division 20 (commencing with Section
30000) of the Public Resources Code) and to other agencies in
accordance with other applicable laws in effect on the effective date
of the act that added this section for improvements upon coastal
lands under the control of the authority through a lease. The port
shall assist in the application for those projects as the trustee of
the lands and shall not impede any improvements sought in the
fulfillment of the authority's duties. The authority shall be
responsible for all applications, requests, or submittals to other
governmental agencies for approvals, permits, authorizations or
agreements of any kind affecting or relating to the property governed
by the lease, and the port shall cooperate in completion of all
documents in the form submitted or approved by the authority without
modification, providing the documents are requested by the authority,
or required by any other governmental agencies, or both.
(d) Notwithstanding any other provision of law, immediately upon
the transfer of the San Diego International Airport to the authority,
the variance from Section 5012 of Title 21 of the California Code of
Regulations (noise standards) issued to the port effective August
27, 2001, by the Department of Transportation shall be transferred to
the authority. That variance shall be transferred on the same terms
and conditions as granted to the port. The authority shall comply
with the terms and conditions of the transferred variance.
SEC. 16. Section 170062 of the Public Utilities Code is amended to
read:
170062. (a) The authority shall develop a transition plan to
facilitate the transfer of the San Diego International Airport to the
authority pursuant to this section. To facilitate the preparation
of a transition plan, the authority and the port shall jointly
commission a certified audit to determine the financial condition of
the San Diego International Airport, including, but not limited to,
the obligations of the airport and the reasonableness of the overhead
charges being paid by the airport to the port. Upon completion of
the audit, the port and the authority shall balance all accounts,
including, but not limit to, loans and other obligations between the
two agencies.
(b) The port shall cooperate in every way to facilitate the
transfer of the San Diego International Airport to the authority.
(c) In the preparation of the transition plan, priority shall be
given to ensuring continuity in the programs, services, and
activities of the San Diego International Airport.
(d) (1) The transfer of the San Diego International Airport to the
authority shall be completed on or after December 16, 2002.
(2) The terms of the transfer of San Diego International Airport
to the authority shall include, but are not limited to, the
following:
(A) The authority shall request and receive a finding by the
Federal Aviation Administration that it is an eligible airport
sponsor.
(B) The authority shall comply with federal regulations,
including, but not limited to, Part 139 of Title 14 of the Code of
Federal Regulations (certification and operation) and Part 107 of
Title 14 of the Code of Federal Regulations (security).
(C) Consistent with the obligations set forth in this section, the
authority may, it is 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 orderly transfer and
continued operation of San Diego International Airport. During a
transition period from January 1, 2003, to June 30, 2005, inclusive,
the authority shall purchase from the port, pursuant to a written
agreement approved by the authority and the port, substantially all
of the services specified in subparagraphs (D), (E), and (F) during
the periods stated in subparagraphs (D), (E), and (F), subject to
subdivisions (h) to (j), inclusive, and other requirements imposed by
law or regulation.
(D) For the period from January 1, 2003, to June 30, 2003,
inclusive, the authority shall acquire substantially all of its
requirements for the following services from the port:
(i) General services and maintenance.
(ii) Training and organizational development.
(iii) Public art.
(iv) Environmental services.
(v) Human resources.
(vi) Audit and risk management.
(vii) Marketing.
(viii) Financial services.
(ix) Information technology.
(x) Purchasing.
(xi) Treasury.
(xii) Equal Opportunity Management.
(E) For the period from July 1, 2003, to June 30, 2004, inclusive,
the authority shall acquire substantially all of its requirements
for the following services from the port:
(i) General services and maintenance.
(ii) Training and organization development.
(iii) Public art.
(iv) Environmental services.
(v) Human resources.
(vi) Audit and risk management.
(vii) Marketing.
(F) For the period from July 1, 2004, to June 30, 2005, inclusive,
under the authority shall acquire substantially all of its
requirements for the following services from the port:
(i) General services and maintenance.
(ii) Training and organizational development.
(iii) Public art.
(G) Except as expressly stated in subparagraphs (D), (E), and (F),
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.
(H) 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.
(I) 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.
(J) For those services that the authority is required, under
subparagraphs (D), (E), and (F) to purchase from the port, the port
shall submit to the authority a proposed budget for those services
for the approval of the authority not less than 120 days preceding
the commencement of the applicable six-month or one-year period for
the provision of those services. For all other services that the
authority in its discretion may request, and the port agrees to
provide services, the port shall submit to the authority a proposed
budget for those optional services within 30 days of the authority's
request for the services.
(K) 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.
(L) Performance of all 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 performance
audits, or both, of, all services provided by the port and all
charges or claims for payment for the services.
(M) Upon the completion of the transfer, the authority shall hire
existing port staff assigned to the aviation division of the port as
employees of the authority. The authority may hire additional staff,
as needed, to fulfill its responsibilities. The authority shall
make every responsible effort to fill necessary positions from port
staff which may be affected by the transfer of the airport.
(e) The transfer may not in any way impair any contracts with
vendors, tenants, employees, or other parties.
(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 the Lindbergh Field, and
peace officer of the Harbor Police shall remain employees of the
port.
SEC. 17. Section 170064 of the Public Utilities Code is amended to
read:
170064. (a) From revenues in accounts attributable to airport
operations, the port shall fund the authority for not less than one
million dollars ($1,000,000) each year until that time as the
transfer of the airport and all associated revenue sources have been
completed between the port and the authority. The authority's board
may submit a budget request for more than this amount if necessary to
carry out its duties. The port shall approve those budget requests
in a timely manner without modification or reduction. The authority
shall report its total budget expenditure amount to the port on an
annual basis and balance or carryover reserves from previous budgets.
The funding provided by this subdivision replaces any loans made to
the authority by the port under the former provisions set forth in
this subdivision requiring the port to loan the authority the sum of
one million dollars ($1,000,000).
(b) Upon the completion of the transfer pursuant to Section
170062, the authority shall assume all revenue stream revenues to
fund its activities, operations, and investments consistent with its
purposes. The sources of revenue available to the authority may
include, but are not limited to, imposing fees, rents, or other
charges for facilities, services, the repayment of bonded
indebtedness, and other expenditures consistent with the purposes of
the authority.
(c) To the extent practicable, the authority shall endeavor to
maximize the revenues generated from enterprises located on the
property of the authority.
(d) The authority may receive state and federal grants for
purposes of planning, constructing, and operating an airport and for
providing ground access to airports under its control.
SEC. 18. Section 170066 of the Public Utilities Code is repealed.
SEC. 19. Section 170066 is added to the Public Utilities Code, to
read:
170066. (a) No other agency in the County of San Diego may apply
for grants for funding significant expansion activities, including,
but not limited to, specific efforts to increase air capacity, unless
the application is first approved by the authority as being
consistent with the regional air transportation plan adopted by the
authority.
(b) Unless action is taken pursuant to Section 170068, publicly
owned airports in the County of San Diego, other than the San Diego
International Airport, shall not be considered to be under the
control of the authority for purposes of application for, or receipt
of grants for, regular operational maintenance and upgrade projects
adopted pursuant to Section 21670.3.
SEC. 20. Section 170068 of the Public Utilities Code is amended to
read:
170068. The authority may only accept the transfer of ownership
of other publicly owned airports in the County of San Diego upon
initiation by the respective airport operator. Any transfer shall
include the preparation of a transition plan to ensure the orderly
transfer of assets and obligations. In accepting a transfer, the
authority may assume no financial obligations other than those
associated with the operation of the airport being transferred.
SEC. 21. Section 170070 of the Public Utilities Code is amended to
read:
170070. (a) The authority may issue bonds, from time to time,
payable from revenue of any facility or enterprise operated,
acquired, or constructed by the authority, for any of the purposes
authorized by this division in accordance with the Revenue Bond Law
of 1941 (Chapter 6 (commencing with Section 54300) of Part 1 of
Division 2 of Title 5 of the Government Code), excluding Article 3
(commencing with Section 54380) of Chapter 6 of Part 1 of Division 2
of Title 5 of the Government Code and the limitations set forth in
subdivision (b) of Section 54402 of the Government Code which shall
not apply to the issuance and sale of bonds pursuant to this section.
(b) The authority is a local agency within the meaning of Section
54307 of the Government Code. The airport system or any or all
facilities and all additions and improvements that the authority's
governing board authorizes to be acquired or constructed and any
purpose, operation, facility, system, improvement, or undertaking of
the authority from which revenues are derived or otherwise allocable,
which revenues are, or may by resolution or ordinance be, required
to be separately accounted for from other revenues of the authority,
shall constitute an enterprise within the meaning of Section 54309 of
the Government Code.
(c) The authority's governing board shall authorize the issuance
of bonds pursuant to this section by resolution, which resolution
shall be adopted by a majority vote and shall specify all of the
following:
(1) The purposes for which the bonds are to be issued, which may
include any one or more purposes permitted by this division.
(2) The maximum principal amount of bonds.
(3) The maximum term of bonds.
(4) The maximum rate of interest, fixed or variable, to be payable
upon the bonds.
(5) The maximum discount or premium payable on sale of the bonds.
(d) For purposes of the issuance and sale of bonds pursuant to
this section, the following definitions shall be applicable to the
Revenue Bond Law of 1941:
(1) "Fiscal agent" means any fiscal agent, trustee, paying agent,
depository or other fiduciary provided for in the resolution
providing the terms and conditions for the issuance of the bonds,
which fiscal agent may be located within or without the state.
(2) "Resolution" means, unless the context otherwise requires, the
instrument providing the terms and conditions for the issuance of
bonds, which instrument may be an indenture, trust agreement,
installment sale agreement, lease, ordinance, or other instrument in
writing.
(e) Each resolution shall provide for the issuance of bonds in the
amounts as may be necessary, until the full amount of bonds
authorized has been issued. The full amount of bonds may be divided
into two or more series with different dates of payment fixed for
bonds of each series. A bond need not mature on its anniversary
date.
(f) The authority may issue refunding bonds to redeem or retire
any bonds issued by the authority upon the terms, at the times, and
in the manner which the authority's governing body determines by
resolution. Refunding bonds may be issued in a principal amount
sufficient to pay all, or any part of, the principal of the
outstanding bonds, the premium, if any due upon call redemption
thereof prior to maturity, all expenses of redemption and either of
the following:
(1) The interest upon the refunding bonds from the date of sale
thereof to the date of payment of the bonds to be refunded out of the
sale of the refunding bonds or to the date upon which the bonds to
be refunded will be paid pursuant to call or agreement with the
holders of the bonds.
(2) The interest upon the bonds to be refunded from the date of
sale of the refunding bonds to the date of payment of the bonds to be
refunded or to the date upon which the bonds to be refunded will be
paid pursuant to call or agreement with the holders of the bonds.
(g) The authority may enter into any liquidity or credit agreement
it may deem necessary in connection with the issuance of bonds
authorized by this section.
(h) This section provides a complete, additional, and alternative
method of performing the acts authorized by this section, and the
issuance of bonds, including refunding bonds, need not comply with
any other law applicable to borrowing or the issuance of bonds. Any
provision of the Revenue Bond Law of 1941 which is inconsistent with
this section or this division shall not be applicable.
(i) Nothing in this section prohibits the authority from availing
itself of any procedure provided in this chapter for the issuance of
bonds of any type or character for any of the authorized airport
facilities. All bond proceedings may be carried on simultaneously
or, in the alternative, as the authority may determine.
SEC. 22. Section 170072 of the Public Utilities Code is amended to
read:
170072. The authority may levy special benefit assessments
consistent with the requirements of Article XIII D of the California
Constitution to finance capital improvements, including, but not
limited to, special benefit assessments levied pursuant to any of the
following:
(a) The Improvement Act of 1911 (Division 7 (commencing with
Section 5000) of the Streets and Highways Code).
(b) The Improvement Bond Act of 1915 (Division 15 (commencing with
Section 8500) of the Streets and Highways Code).
(c) The Municipal Improvement Act of 1913 (Division 12 (commencing
with Section 10000) of the Streets and Highways Code).
(d) The Landscaping and Lighting Act of 1972 (Part 2 (commencing
with Section 22500) of Division 15 of the Streets and Highways Code).
SEC. 23. Section 170076 of the Public Utilities Code is amended to
read:
170076. (a) The authority may borrow money in anticipation of the
sale of any bonds that have been authorized to be issued, but have
not been sold and delivered, and may issue negotiable bond
anticipation notes therefor, and may renew the bond anticipation
notes from time to time, but the maximum maturity of any bond
anticipation notes, including the renewals thereof, may not exceed
five years from the date of delivery of the original bond
anticipation notes. The bond anticipation notes may be paid from any
money of the authority available therefor and not otherwise pledged.
(b) If not
previously otherwise paid, the bond anticipation notes shall be paid
from the proceeds of the next sale of the bonds of the authority in
anticipation of which they were issued. The bond anticipation notes
may not be issued in any amount in excess of the aggregate amount of
bonds that the authority has been authorized to issue, less the
amount of any bonds of the authorized issue previously sold, and also
less the amount of other bond anticipation notes therefore issued
and then outstanding. The bond anticipation notes shall be issued
and sold in the same manner as the bonds. The bond anticipation
notes and the resolution or resolutions authorizing them may contain
any provisions, conditions, or limitations that a resolution of the
authority authorizing the issuance of bonds may contain.
(c) Exclusively for the purpose of securing financing or
refinancing for any of the purposes permitted by this division
through the issuance of bonds, notes, or other obligations, including
certificates of participation, by a joint powers authority, and,
notwithstanding any other provision contained in this division or any
other law, the authority may borrow money or purchase or lease
property from a joint powers authority and, in connection therewith,
may sell or lease property to the joint powers authority, in each
case at the interest rate or rates, maturity date or dates,
installment payment or rental provisions, security, pledge of
revenues and other assets, covenants to increase rates and charges,
default, remedy and other terms or provisions as may be specified in
the installment sale, lease, loan, loan purchase, or other agreement
or agreements between the authority and the joint powers authority.
The authority may enter into any liquidity or credit agreement it may
deem necessary or appropriate in connection with any financing or
refinancing authorized by this section. This section provides a
complete, additional and alternative method of performing the acts
authorized by this section, and the borrowing of money, incurring
indebtedness, sale, purchase or lease of property from or to a joint
powers authority, and any agreement for liquidity or credit
enhancement entered into in connection therewith, pursuant to this
section need not comply with the requirements of any other law
applicable to borrowing, incurring indebtedness, sale, purchase,
lease or credit except for compliance with this section.
SEC. 24. Section 170078 of the Public Utilities Code is amended to
read:
170078. The authority may bring an action to determine the
validity of any of its bonds, equipment trust certificates, warrants,
notes, or other evidences of indebtedness or any of its revenues,
rates, or charges pursuant to Chapter 9 (commencing with Section 860)
of Title 10 of Part 2 of the Code of Civil Procedure.
SEC. 25. Section 170080 of the Public Utilities Code is repealed.
SEC. 26. Section 170082 of the Public Utilities Code is amended to
read:
170082. (a) Notwithstanding any other provisions of this division
or any other law, the provisions of all ordinances, resolutions, and
other proceedings in the issuance by the authority of any bonds,
bonds with a pledge of revenues, bonds for improvement districts,
revenue bonds, equipment trust certificates, notes, or any and all
evidences of indebtedness or liability constitute a contract between
the authority and the holders of the bonds, equipment trust
certificates, notes, or evidences of indebtedness or liability, and
the provisions thereof are enforceable against the authority or any
or all of its successors or assigns, by mandamus or any other
appropriate suit, action, or proceeding in law or in equity in any
court of competent jurisdiction.
(b) Nothing in this division or in any other law shall be held to
relieve the authority or the territory included within it from any
bonded or other debt or liability contracted by the authority.
(c) Upon dissolution of the authority or upon withdrawal of
territory therefrom, that territory formerly included within the
authority, or withdrawn therefrom, shall continue to be liable for
the payment of all bonded and other indebtedness or liabilities
outstanding at the time of the dissolution or withdrawal as if the
authority had not been so dissolved or the territory withdrawn
therefrom, and it shall be the duty of the successors or assigns to
provide for the payment of the bonded and other indebtedness and
liabilities.
(d) To the extent provided in the proceedings for the
authorization, issuance, and sale of any revenue bonds, bonds secured
by a pledge of revenues, or bonds for improvement districts secured
by a pledge of revenues, revenues of any kind or nature derived from
any revenue-producing improvements, works, facilities, or property
owned, operated, or controlled by the authority may be pledged,
charged, assigned, and have a lien thereon for the payment of the
bonds as long as the same are outstanding, regardless of any change
in ownership, operation, or control of the revenue-producing
improvements, works, facilities, or property and it shall, in any
later event or events, be the duty of the successors or assigns to
continue to maintain and operate the revenue-producing improvements,
works, facilities, or property as long as bonds are outstanding.
SEC. 27. Section 170084 of the Public Utilities Code is amended to
read:
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 of 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. 28. 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. 29. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because a local agency or school district has the authority
to levy service charges, fees, or assessments sufficient to pay for,
in part, the program or level of service mandated by this act, within
the meaning of Section 17556 of the Government Code.
However, notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
other 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. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
SEC. 30. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order that these provisions may apply at the earliest possible
time to facilitate the orderly transfer of the San Diego
International Airport to the San Diego County Regional Airport
Authority, it is essential that this act take effect immediately.