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HomeMy WebLinkAboutAGENDA REPORT 2004 1103 CC REG ITEM 09BMOORPARK CITY COUNCIL AGENDA REPORT iTT_7'M-C1650 - CITY OF MOORPARK, CALIFORNIA City Council Meeting of //- 0,3 -,700 h/ ACTION: A!stt.!.ce! Q.tw- pi lt„ ii iIAW%#, a,,.r .L • •� .f �s„��� By: 1A /D11a?00 AI t? � 8y: i3 C-=,- b--- TO: Honorable City Council FROM: Barry K. Hogan, Community Development Director Prepared By: David A. Bobardt, Planning Mana1(Q DATE: October 21, 2004 (CC Meeting of 11/3/2004) IX% SUBJECT: Consider an Update on Expansion Activities at the Port of Hueneme BACKGROUND /DISCUSSION On October 6, 2004, the City Council considered a staff report updating activities at the Port of Hueneme. By consensus, the Council requested that this item be agendized for discussion. A copy of the previous agenda report is attached. STAFF RECOMMMATION' Direct staff as deemed appropriate. Attachment: October 6, 2004, Agenda Report (with attachment under separate cover) `)O000IC- i MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Barry K. Hogan, Community Development Director Prepared By: David A. Bobardt, Planning Manager DATE: September 17, 2004 (CC Meeting of 10/06/2004) SUBJECT: Consider an Update on Expansion Activities at the Port of Hueneme BACKGROUND Truck traffic through Moorpark on State Highway 118 related to activities at the Port of Hueneme has been an ongoing City Council concern. On May 21, 2003, City Council requested information from staff on the impact of the Port of Hueneme on regional traffic. On March 17, 2004, discussion on the County of Ventura General Plan update led to comments that the project description lacked information on how the update related to port expansion activities. This report addresses both issues. DISCUSSION The Port of Hueneme, overseen by the Oxnard Harbor District, primarily handles break -bulk cargo, such as produce and vehicles, items normally not shipped on big container ships that dominate the Ports of Los Angeles and Long Beach. The Port has increased its cargo tonnage approximately tenfold since 1970, from about 111,500 metric tons to an estimated 1.15 million metric tons for fiscal year 2002 -2003. Companies that currently use the Port of Hueneme include Del Monte, Sunkist, Chiquita, LauritzenCool, BMW, Mazda, Land Rover, Suzuki, Mini, Jaguar, Saab, Mitsubishi, Rolls Royce, Volvo, Kia, and Hyundai. The Port is projecting growth of total port tonnage to between 3.4 and 5.6 million tons by the year 2020. In an effort to provide information to decision makers and identify traffic improvement strategies, the Ventura County CC ATTACHMENT 000 ,101'.� 6 Honorable City Council October 6, 2004 Page 2 Transportation Commission has periodically prepared Port of Hueneme Access Studies. The most recent study, completed in December 2000, included a description of existing activities at the Port, growth projections through the year 2020, and an evaluation of port - related truck traffic on State Highway 118. A summary of the findings of this report are as follows: • A survey conducted in the year 2000 shows 678 truck trips destined to or from the Port of Hueneme gate. This survey was conducted on a Tuesday between 6:00 AM and 6:00 PM, its typically busiest day of the week. The Port operates between 8:00 AM and 5:00 PM, so the hours of the survey should account for all port- related truck traffic through Moorpark. • Approximately 40 percent of the Port truck traffic had local origins or destinations, 30 percent had origins or destinations outside the local area but within the greater Los Angeles area, and 30 percent had origins or destinations through the rest of California, or outside the state. • Approximately 10.6 percent of the truck traffic (72 truck trips) used State Highway 118 through Moorpark to or from the Port. A survey of drivers showed that the main reasons for using this route were either that it was the most direct route or it was used to avoid congestion on the U.S. 101. • Port - related truck traffic during the 6:00 AM to 6:00 PM survey period represented approximately 1.9 percent of 3,797 trucks on Los Angeles Avenue, west of Spring Road during this time. • Port - related truck traffic is projected to increase to between 2,244 and 3,879 daily trips by the year 2020, an increase in truck trips 3.3 to 5.7 times current levels. Approximately 240 to 417 of these trucks are expected to travel along State Highway 118 through Moorpark, daily between 6:00 AM and 6:00 PM, representing between 4.4% and 7.40 of total truck traffic west of Spring Road during this time, projected to total between 5,448 and 5,624 trucks. In March of 2003, the Oxnard Harbor District submitted a proposal to the Department of the Navy, requesting the Navy to consider selling or otherwise relinquishing 670 acres of the Naval Base Ventura County, including buildings and wharf facilities, to be used for expansion of the Port. A copy of the Honorable City Council October 6, 2004 Page 3 proposal is attached. This proposal would allow the Port to expand to the levels projected in the Port Access Study, enhancing break -bulk cargo capacity, increasing container shipping capacity, adding facilities for short sea shipping, and increasing employment, directly related to port activities, from 2,122 jobs in 2003 to 10,004 jobs by the year 2030. This proposal was submitted to the local Navy command in July /August 2004. The Navy has not yet formally responded to the expansion proposal. Without this additional land and facilities, port activity would be expected to grow much more modestly. If the Naval Base Ventura County is mothballed as a result of the Base Relocation and Closure 2005, the Port could lose its current joint use of one of its wharfs. Environmental review would be required for this expansion proposal before any action is taken by the Oxnard Harbor District to formally acquire the land. Expansion of port activities is being considered in the traffic analysis for the County of Ventura General Plan update. A Draft Environmental Impact Report (EIR) on this update is expected to be released by October 2004. Staff will continue to monitor this project and will provide the City Council with information for discussion during the Draft EIR comment period. STAFF RECObMENDATION Receive and file. Attachment: Port of Hueneme Strategic Commercial Development Plan Action Summary (under separate cover) ITEM 9.B,, Attachment (Continued from 10/6/2004) MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council { 10-F. C,1 T Y OF MOORPARK, CALIFORNIA City Council Meeting of ACTION: n fa FROM: Barry K. Hogan, Community Development Director Prepared By: David A. Bobardt, Planning Mana e Ph DATE: September 17, 2004 (CC Meeting of 10/06/2004) SUBJECT: Consider an Update on Expansion Activities at the Port of Hueneme BACKGROUND Truck traffic through Moorpark on State Highway 118 related to activities at the Port of Hueneme has been an ongoing City Council concern. On May 21, 2003, City Council requested information from staff on the impact of the Port of Hueneme on regional traffic. On March 17, 2004, discussion on the County of Ventura General Plan update led to comments that the project description lacked information on how the update related to port expansion activities. This report addresses both issues. DISCUSSION The Port of Hueneme, overseen by the Oxnard Harbor District, primarily handles break -bulk cargo, such as produce and vehicles, items normally not shipped on big container ships that dominate the Ports of Los Angeles and Long Beach. The Port has increased its cargo tonnage approximately tenfold since 1970, from about 111,500 metric tons to an estimated 1.15 million metric tons for fiscal year 2002 -2003. Companies that currently use the Port of Hueneme include Del Monte, Sunkist, Chiquita, LauritzenCool, BMW, Mazda, Land Rover, Suzuki, Mini, Jaguar, Saab, Mitsubishi, Rolls Royce, Volvo, Kia, and Hyundai. The Port is projecting growth of total port tonnage to between 3.4 and 5.6 million tons by the year 2020. In an effort to provide information to decision makers and identify traffic improvement strategies, the Ventura County 0603313 Honorable City Council October 6, 2004 Page 2 Transportation Commission has periodically prepared Port of Hueneme Access Studies. The most recent study, completed in December 2000, included a description of existing activities at the Port, growth projections through the year 2020, and an evaluation of port- related truck traffic on State Highway 118. A summary of the findings of this report are as follows: • A survey conducted in the year 2000 shows 678 truck trips destined to or from the Port of Hueneme gate. This survey was conducted on a Tuesday between 6:00 AM and 6:00 PM, its typically busiest day of the week. The Port operates between 8:00 AM and 5:00 PM, so the hours of the survey should account for all port- related truck traffic through Moorpark. • Approximately 40 percent of the Port truck traffic had local origins or destinations, 30 percent had origins or destinations outside the local area but within the greater Los Angeles area, and 30 percent had origins or destinations through the rest of California, or outside the state. • Approximately 10.6 percent of the truck traffic (72 truck trips) used State Highway 118 through Moorpark to or from the Port. A survey of drivers showed that the main reasons for using this route were either that it was the most direct route or it was used to avoid congestion on the J.S. 101. • Port - related truck traffic during the 6:00 AM to 6:00 PM survey period represented approximately 1.9 percent of 3,797 trucks on Los Angeles Avenue, west of Spring Road during this time. • Port - related truck traffic is projected to increase to between 2,244 and 3,879 daily trips by the year 2020, an increase in truck trips 3.3 to 5.7 times current levels. Approximately 240 to 417 of these trucks are expected to travel along State Highway 118 through Moorpark, daily between 6:00 AM and 6:00 PM, representing between 4.4% and 7.40 of total truck traffic west of Spring Road during this time, projected to total between 5,448 and 5,624 trucks. In March of 2003, the Oxnard Harbor District submitted a proposal to the Department of the Navy, requesting the Navy to consider selling or otherwise relinquishing 670 acres of the Naval Base Ventura County, including buildings and wharf facilities, to be used for expansion: of the Port. A copy of the ' i ,ba iY �a� Honorable City Council October 6, 2004 Page 3 proposal is attached. This proposal would allow the Port to expand to the levels projected in the Port Access Study, enhancing break -bulk cargo capacity, increasing container shipping capacity, adding facilities for short sea shipping, and increasing employment, directly related to port activities, from 2,122 jobs in 2003 to 10,004 jobs by the year 2030. This proposal was submitted to the local Navy command in July /August 2004. The Navy has not yet formally responded to the expansion proposal. Without this additional land and facilities, port activity would be expected to grow much more modestly. If the Naval Base Ventura County is mothballed as a result of the Base Relocation and Closure 2005, the Port could lose its current joint use of one of its wharfs. Environmental review would be required for this expansion proposal before any action is taken by the Oxnard Harbor District to formally acquire the land. Expansion of port activities is being considered in the traffic analysis for the County of Ventura General Plan update. A Draft Environmental Impact Report (EIR) on this update is expected to be released by October 2004. Staff will continue to monitor this project and will provide the City Council with information for discussion during the Draft EIR comment period. STAFF RECObMNDATION Receive and file. Attachment: Port of Hueneme Strategic Commercial Development Plan Action Summary (under separate cover) i, oesl IG, IMM 029 Port OfHuenemc V OXNARD HARBOR DISTRICT �,�r.r. aval Base Ca �nty die ntu,ra,I-,,,, u, r t 1, 1 egic Commercial development Plan � a IF oesl IG, IMM 029 Port OfHuenemc V OXNARD HARBOR DISTRICT �,�r.r. aval Base Ca �nty die ntu,ra,I-,,,, u, r t 1, 1 egic Commercial development Plan Port of Hueneme: A Call to-- The Port of Hueneme has been called the "best kept secret" on the West Coast. A "niche" port in Ventura County, California sixty miles northwest of Los Angeles, the Port of Hueneme is the only deep water harbor between Los Angeles and the San Francisco Bay. In 1976, the California State Legislature determined the Port of Hueneme to be "one of the state's primary economic and coastal resources and an essential element of the national maritime industry." Further, it asserted that the commercial ports of California "shall be encouraged to modernize and construct necessary facilities within their boundaries in order to minimize or eliminate the necessity for future dredging and filling to create new ports in new areas of the state." The commercial operations of the Port of Hueneme generate more than $535 million in annual economic output (sales) and over 3,800 jobs in Ventura County. Poised for growth, this economic engine is currently constrained by limited land and vessel berthing space. To insure future economic benefits, the Port should acquire property from the neighboring Naval Base — without reducing Navy - related employment or jeopardizing the Navy's ability to respond to national emergencies. The Port of Hueneme is adjacent to approximately 1,600 acres of U.S. Government property — land that was once partially owned by the Oxnard Harbor District. In 1942 the Navy Department condemned, took exclusive possession and occupied all Port property owned by the Oxnard Harbor District to support the war in the Pacific. This action has restricted the commercial growth of the Oxnard Harbor District and the Port of Hueneme to this day. The military property in Port Hueneme makes up a portion of the Naval Base Ventura County (NBVC), which also includes the Naval Air Station at Point Mugu. 1 Under a new round of Base Realignment and Closure (BRAC) in 2005 there is the potential that excess property could be "mothballed ", meaning the local community would riot have use of the property, and the Navy would not be under any obligation to clean up any environmental contamination. This scenario must be avoided and provides significant motivation to acquire underutilized sections of Navy property prior to BRAC 2005. There is a growing consensus that an agreement to reacquire a portion of the land from the military and to make improvements to the port facilities would provide significant economic and national security benefits to Ventura County, the State, and the nation as a whole, including: ■ Long -term, high - paying job opportunities in the commercial maritime and distribution sectors Port- related employment in Ventura County could quadruple to 15,000 jobs by 2030 if the Strategic Plan were implemented. ■ Economic stability for the County and the Region Local taxes related to port activity could increase from $34 million in 2003 to $137 million by 2030; payroll could increase from $152 million in 2003 to $551 million by 2030; and output could increase from $535 million in 2003 to nearly $2.2 billion by 2030. These increases can be made without displacing military jobs and related sales revenues. • • • • • Call to Action continued' • Enhancement of National Security • By further improving wharves and cargo handling capability, the • Strategic Plan would enhance the ability of the U.S. Navy to • • • • • • • • • • • • • • • • • • 1 Port of Hueneme- Refrigerated Container Handling 7 respond to national emergencies. • Monetary savings to the Department of Defense By consolidating or eliminating military facilities and making more productive use of available land for commercial users, there would be significant cost savings to the U.S. Department of Defense. Under the Strategic Plan the Navy would retain vital functions of the Base while relinquishing costly excess acreage. Obtaining the land for harbor - related uses prior to BRAC would protect future economic benefits by assuring that excess Navy property would not be "mothballed" or subjected to BRAC's non -port related uses. 2 Port of Hueneme - Agricultural Equipment Exports Oxnard Harbor District's operation and maintenance of Navy wharves and adjacent "industrial tract" will insure that the facilities will be well maintained in a state -of- readiness condition for future emergency or contingency use by the Navy. It will also insure a trained and adequate labor force for military and transportation - related activities. Growth in international trade is inevitable. Ongoing congestion at the Ports of Los Angeles and Long Beach has created an active and continuing demand for port services at the Port of Hueneme. Potential users are known and their requirements are documented. This means more jobs for Ventura County. The Strategic Plan envisions a public - private partnership involving the local community, the Harbor District, the Navy and commercial tenants to promote the prosperity of Ventura County while enhancing national security capabilities. A win - win solution is in the making! But decision makers must act soon: BRAC 2005 is right around the corner. �.y L4 C1-! 1':) BRAC 2005: The Countdown has �s a. pia ...,'. u In 2001 Congress approved the Defense Authorization Act of 2002 (Public Law 107 -107), which authorizes a new round of military base closures in 2005. BRAC 2005 will be the first round of BRAC since earlier rounds in 1988, 1991, 1993, and 1995. Previous rounds of BRAC closed 97 major domestic installations along with many smaller bases. The Pentagon estimates that it is carrying 20 -25 percent excess infrastructure. The Department of Defense has saved $14.5 billion from previous closures and projects. It would save another $3 billion annually from a new round that could see up to 100 domestic bases closed. (Source: International Development Council, 2001 Federal Review.) According to the Secretary of Defense, a primary objective of BRAC 2005, "is to examine and implement opportunities for greater joint activity" among the various military services. (Source: Memorandum from Secretary of Defense dated November 15, 2002). The countdown for BRAC 2005 is as follows: December 31, 2003: January 31, 2004: February 16, 2004: March 15, 2005: May 16, 2005: September 8, 2005: September 23, 2005: October 20, 2005: November 7, 2005: Defense Secretary publishes criteria for recommending closure or realignment in Federal Register Public comment period on criteria expires. Defense Secretary publishes final selection criteria in the Federal Register. President nominates nine (9) members of the BRAC Commission. Defense Secretary submits recommendations for closure or realignment to the Commission. Commission submits list to the President. The President either approves or disapproves the Commission's list. If disapproved, Commission may submit a revised list to the President. The President must approve of either the original list or the revised list. If not, the process is over Once the President approves a list, Congress has 45 days to accept or reject the entire list. Under Section 2914(c) of Public Law 107 -107, the Defense Department has the option to list a base as inactive. Unlike complete closure, these "mothballed" facilities would allow the government to close a base without transferring the property to the local community. The Defense Department could reopen the facility if national security issues warrant. Furthermore, the military would be under no obligation to cleanup any environmental contamination in such circumstances. 3 :4 • • • • • • • • • • • • • • • • • r • • • • • • • • C N The Strategic Plan. A Wn�UVinr'Solu�io' Naval Base Ventura County (NBVC), including tenant facilities at Port Hueneme and the Naval Air Station at Point Mugu, employs almost 17,000 people — 6,539 active duty personnel, 6,075 civilian staff, 975 contractors, 2,802 reservists, and 477 students. The majority of these jobs are located at Point Mugu. The best of all worlds, economically speaking, for Ventura County would be to preserve Navy- related jobs and to accommodate the projected growth of the commercial port. Preserving Base employment and promoting international trade are not mutually exclusive goals — in fact they are complementary because improved and expanded port facilities translate to a more efficient and responsive military in times of national emergency. Consolidating existing naval facilities will allow a more economic and productive use of lands without any loss in Navv- related emNovment. It is impossible to predict the outcome of BRAC 2005, but it is wise to prepare for all possible contingencies. In the event the Base is declared "inactive" (mothballed), Navy jobs would largely disappear. But commercial development of the Navy property would also be precluded, and the District's Joint Use Agreement for Wharf 3 would likely be annulled. To preserve the Port's potential for growth, it is absolutely necessary to acquire additional property from the Navy prior to BRAC 2005. In times of emergency, the military would always have the option of receiving service at the Port. The proposed Strategic Plan envisions preservation of key naval facilities while providing improved waterfront facilities for commercial use. In the next few pages, current and future port facilities and Navy uses are described. "The .port has an exciting feature, potentially providing a quadrupling of Harbor- related jobs in the County by 2030. Working together with the local community, elected officials, the military, the U.S. Maritime Administration and other stakeholders, the Oxnard Harbor District is committed to developing an economically viable and environmentally sound plan for the future." Jess Herrera, Commissioner, Oxnard Harbor District A. Poif of Hueneme - Project Cargo Handling Fort of Hueneme: A Leader,in Internation4al�i�,�`a�lf��` � � ' Over $4 billion in cargo moves through the Port of Hueneme each year. The Port of Hueneme became the number one seaport in tho U_ S. for citrus exports in 1996 -- a position it has held for seven consecutive years. Top trading partners include Brazil, Costa Rica, Ecuador, England, Germany, Norway, Sweden, and Japan. The Port is one of the busiest load centers on the West Coast for the import and export of automobiles and rolling stock. The Port ha_; attracted well -known manufacturers such as BMW, Mini Cooper, Rolls Royce, Jaguar, Land Rover, Mazda, Mitsubishi, Saab, Suzuki, and Volvo. The Port serves Scandinavian, European, and Asian automobile carriers such as NYK, K -Line, Mitsui OSK Line, and Wallenius Wilhelmsen Lines ro /ro operations, with four major vehicle preparation and distribution facilities within 1.5 miles of the waterfront_ Maritime infrastructure currently includes two wharfs: Wharf 1:. Wharf 1 supports the receipt and shipment of general cargo, receipt of fresh fruit and shipment of citrus fruit and vegetables. In addition, vessel bunkering and associated liquid bulk operations are performed at Wharf 1. Wharf 2: Wharf 2 supports the receipt and shipment of heavy equipment, automobiles, wood pulp and general cargo. Support vessels used in the local offshore oil industry also use both wharves for mooring and operations. There are currently two on -dock refrigerated facilities that support palletized agricultural imports and exports, both located on Wharf 1. Del Monte operates its Western U.S. Distribution Center in the warehouse adjacent to Berth 3, while the LauritzenCool terminal encompasses a 140,000 sq. ft. warehouse adjacent to Berth 1. Future plans include the expansion of the Del Monte facility to provide over double the capacity for fresh fruit and banana cargo. The Port also handles refrigerated cargo in containers that are stored on adjacent on -dock dedicated container yards. Constructed on the site of the former Naval Civil Engineering Laboratory, the South Terminal — Expansion Project was completed and greatly enhances the Port's refrigerated container and roll -on /roll -off cargo storage capacity. The recently completed Sunkist site terminal will accomr7iodate vehicles, heavy rolling stock and containers. Also adjacent to Wharf 1, Hydro -Agri operates a bulk liquid fertilizer terminal. The terminal is situated on three acres and includes a completely automated over -the -road (OTR) truck loading facility. Two vehicle preparation and distribution facilities are located on property leased by auto processors from the Navy. 5 LEGEND Auto Break Bulk , '` Container Fishery Liquid Bulk �. Refrigerated Cargo Support Oil Tanks Office & Warehouse i • • • r • • i ... �. -:, �� �F� �,�• 6 Strategic Plan Preserves ey K NE Naval Base Ventura County (NBVC) is a staging and shipping point for military cargoes to bases and locations in the Pacific theater Existing naval waterfront facilities include four deep -water wharves plus an additional three berths located at the north end of the harbor basin which are primarily used for small boat operations. There are approximately 35 acres of open storage within the port area. There are an additional 150,000 square feet of covered storage near the port area and about 185 acres of open storage dispersed throughout the existing Foreign Trade Zone on NBVC property. Most open storage areas are fenced and paved with asphalt. Currently, these areas are not utilized and provide the potential for accommodating future increases in commercial cargo storage needs. The remaining covered storage areas are typically used for the storage of construction equipment and pre - positioned materials. The port is used for berthing various target vessels. Currently much of the acreage at NBVC — Port Hueneme is underutilized. However, the NBVC has leased approximately 70 acres of land to Mazda Motor Corporation and another 50 acres of land to Global Auto Processing Services (GAPS). Wharf 3 and 25 acres are committed to a Joint Use Agreement with the Harbor District. Leasing out to store and process automobiles is a clear indication that underutilized Navy property can be put to more productive commercial uses. The military material stored at NBVC could be easily stored at other locations such as China Lake, where the desert climate is better suited to long -term storage than the harsh oceanfront location of Port Hueneme. The proposed Strategic Plan calls for the acquisition and development of selected properties within the Foreign Trade Zone area of the Base, the intermodal rail yard on the north side and a few adjacent properties. The Plan does not involve acquiring properties which could be considered key to the Navy's operations, including: ■ Naval Facilities Engineering Service Center (NFESC) near the intermodal rail yard ■ Naval Research Laboratory (NRL) on the north side of the entrance channel. • Naval Surface Warfare Center (NSWC). NSWC engineers and personnel provide test and evaluation, system engineering, in- service engineering, and integrated logistics support for surface warfare combat systems and subsystems. • Surface Warfare Engineering Facility (SWEF). Part of NSWC, this is a land -based test site and laboratory facility that allows test and evaluation of combat and weapons systems designed for use by fleet vessels. Should the four facilities listed above be considered key to the mission of the U.S. Navy, the Strategic Plan accommodates continued operation of these facilities. 7 LEGEND Recreational /Residential Navy Property and Non -FTZ Rail Yard Navy Property Foreign Trade Zone Navy Property Port of Hueneme OHD Automobile Storage Area (FTZ) Navy Property Rail Access via Rail America to UP Mainline 0 Highway Access via Hwy 101 14-- Key Naval Properties i • • • i • • i ! • • • i • • • • • i a , L Existing Land Uses - Navy Base ment Pla Waterfront Developne x } The contemplated Waterfront Development Plan attempts to maximize the potential available acreage for accommodating additional commercial maritime operations at Port Hueneme. This conceptual land -use plan has considered the following criteria in determining the most appropriate use of potential available waterfront properties: • The ability for the Port of Hueneme to provide a modernized facility for supporting the U.S. Maritime Administration's Short Sea Shipping Initiative with barge and /or feeder - vessel containerized capabilities. ■ The ability for the Port of Hueneme to act as an emergency port for overflow cargo in the event of disruptions at neighboring West Coast ports. • The ability for the Port of Hueneme to act as a contingency port for strategic cargo in the event of military mobilization and deployment operations. • The ability for the Port of Hueneme to provide suitable infrastructure and facilities for the (un)loading of Bob Hope Class Low - Medium Speed Ro /Ro (LMSR) vessels in the event of military mobilization and deployment operations. The existing fresh fruit terminals at Wharf 1 would remain dedicated refrigerated cargo facilities while an 80 -acre marine container terminal would support dry container cargo adjacent to Wharf 2. The harbor area adjacent to Wharf 6 could be extended north to create a new berth in support of short sea shipping operations and /or fast ship operations, as well as for potential military mobilization and deployment operations. This new coastal shipping marine terminal would encompass 45 acres. Wharf 4 could also be extended north to provide two berths in support of project cargo and ro /ro operations, including automobiles and heavy machinery. A 45 -acre storage area could be provided adjacent to the wharf to accommodate project cargo and heavy machinery storage requirements, while auto preparation and processing would occur at locations within the upland industrial area. A LEGEND Container Terminal Fresh Fruit Terminal RO /RO Terminal Project and Heavy Equipment Cargo Navy Property- Key Facilities Q Coastal Shipping Terminal Office & Warehouse Wharf #1 (Fresh Fruit Terminal) G Wharf #2 (Container Terminal) Wharf #3 (Container Terminal) ( 3 , Wharf #4 (Ro /Ro) O Wharf #6 (Coastal Shipping) ��,! Container Crane 0 0 0 0 0 0 0 0 0 0 0 0 0 0 • 0 • 0 Aft i 1Y Waterfront Development Map 10 NORTH Upland Industrial Developmenfi P�Ar The proposed Upland Industrial Development Plan evaluates the existing 677 -acre parcel of land on NBVC — Port Hueneme property included in U.S. Foreign Trade Zone (FTZ) #205. FTZs are secure areas that are physically located within the United States but are considered outside of United States Customs territory. FTZ #205 was created to serve the broad interests of importers and exporters throughout California's central coast. The FTZ fosters international trade and commerce by deferring customs duties on goods stored within the FTZ (until they are shipped to market) or to another FTZ, or shipped overseas. In determining the most appropriate use of available upland industrial properties, the following criteria have been evaluated: • The potential for the development of a modern intermodal yard in support of commercial cargo operations, military mobilization and deployment operations • The potential need for staging and storage areas in support of military mobilization and deployment operations • The relocation of waterfront automobile storage areas for conversion to marine container and coastal shipping terminals • The increased need for additional automobile preparation and processing areas to meet future increases in automobile import volumes Prirt of Haanamw. Tnn Pirk nnarafinn% The existing rail yard within the upland industrial area would be extended to include an intermodal yard encompassing 30- acres. Current automobile storage and processing capacity would increase to approximately 330 - acres, to accommodate future growth in automobile volumes, and potential staging and storage needs in support of military mobilization and deployment operations. An additional 160 -acres adjacent to the intermodal yard would accommodate multi -modal and industrial facilities, including food packaging and distribution plants, liquid and dry bulk cargo facilities, warehousing, distribution or manufacturing facilities. These areas could also accommodate additional automobile processing or break bulk cargo storage. 11 LEGEND Navy Property Auto Processing and _ .. Preparation Intermodal Yard Marshalling Yard Multi -Modal Navy Property -Key Facilities U" O C ?� Z 1 !•i•!i•i•ii!!!i•i•••ii••ii� Q. CC� G E Q. 0 Q N a Strategic Plan Provides Major xx x Under the Strategic Plan, the Port of Hueneme will reach its full potential based on accepted growth rates and known users. The total impact for 2030 is $2.2 billion in sales with employment increasing to 15,000 jobs — nearly a quadrupling over 2003 levels. From 2003, there is also a projected increase of over 300% in sales and a fourfold increase in local taxes. The detailed estimates for direct and total impacts are shown in the following table. Economic Impact of the Port of Hueneme with Implementation of the Plan Direct Impact 2003 Baseline 2005 2010 2020 2030 Revenue (Mil. $) 292.5 475.6 734.8 994.4 1,221.6 Payroll (Mil. $) 90.8 135.6 202.0 266.0 319.9 Employment (Jobs) 2,122 3,661 5,963 8,172 10,004 Total Impact Revenue (Mil. $) 535.3 858.1 1,313.4 1,770.9 2,172.9 Payroll (Mil. $) 151.7 230.1 342.1 453.5 550.8 Employment (Jobs) 3,846 6,037 9,211 12,308 14,914 Taxes (Mil $) 33.7 54.1 82.7 111.6 136.9 Port Hueneme Aerial Commercial port- related jobs are characterized by high wage rates and long -term stability. Investments have been mane in and near the port by the automobile, agriculture and petroleum industries that will be maintained and augmented for many years to come. Expectations are that cargo volumes will double by 2020. As congestion develops in the port facilities at Los Angeles and Long Beach, more port users will be attracted to the Port of Hueneme. Since the Port of Hueneme represents a growth industry, additional sales, jobs, wages and taxes can be expected from construction of new facilities and infrastructure. These impacts are in addition to those already cited above. 13 r r S i rr Rn �t 4� iv:.. rf° Mothballing Means Loss ofi;l With the Mothball scenario, the Port of Hueneme /Oxnard Harbor District would generate only a 4% sales /employment increase for Ventura County from 2003 to 2030. The joint use agreement for Wharf 3 would be annulled and commercial port growth would be limited to the pre- agreement footprint. With the mothballing of the Base, little growth in harbor - related business is seen from 2005 through 2030 and local tax revenue would remain at 2003 levels. The mothball scenario is of concern for the following reasons: 1. Mothballing current facilities would preclude commercial development and add more acreage to the current excess of Navy property. 2. Mothballing is a "lose -lose" scenario characterized by the loss of Navy jobs and stagnant growth in trade and transportation - related economic benefits. Economic Impact of the Port of Hueneme if NBVC - Port Hueneme is "Mothballed" Direct Impact B 2003 2 2005 2 2010 2 2020 2 2030 Revenue (Mil. $) 2 292.5 3 301.6 3 304.8 3 304.8 3 304.8 Payroll (Mil. $) 9 90.8 9 93.0 9 93.8 9 93.8 9 93.8 Employment (Jobs) 2 2,122 2 2,201 2 2,228 2 2,228 2 2,228 Total Impact Revenue (Mil. $) 5 535.3 5 551.3 5 557.0 5 557.0 5 557.0 Payroll (Mil. $) 1 151.7 1 155.6 1 157.0 1 157.0 1 157.0 Employment ( Jobs) 3 3,846 3 3,954 3 3,991 3 3,991 3 3,991 "Taxes (Mil. $) 3 33.7 3 34.7 3 35.1 3 35.1 3 35.1 14 sue...,.. -..t .. ,...�_.... , r TM�m�xH "Mothballed" NBVG- Port ttoct►fc.At�c Port of Hueneme - Refrigerated Trailers Additional Benefits ofA the5trau Increase Capacity This Strategic Plan will further enhance a world- recognized port which handles a variety of cargo types and operations. The emerging West Coast port capacity — Trans Pacific cargo dilemma has created the need for additional acreage to accommodate the ever increasing need for container handling capability. The Ports of Los Angeles and Long Beach are struggling to create more capacity for containerized cargo and have determined that a significant amount of additional acreage is necessary to meet the projected container terminal requirements for the immediate future. The Port of Hueneme is capable of accommodating overflow non - containerized cargo from the Ports of Los Angeles and Long Beach in order to create additional available acreage at those ports for container terminal development. Short Sea Shipping /Fast Ships The Short Sea Shipping Initiative, created by the U.S. Maritime Administration, is an initiative responding to current freight congestion on the nation's rail and highway systems. Short sea shipping operations will increase the current capacity of the nation's intermodal system by providing alternative freight traffic routes via coastal and inland waterways. Additionally, short sea shipping is a fuel- efficient, cost effective and environmentally sound means of transporting freight compared to highway and railroad transport. The creation of a short sea shipping and /or fast ship terminal at the Port of Hueneme could provide the West Coast with a state -of- the -art facility to initiate domestic waterborne shipping. Fast ships, capable of speeds of up to 45 knots, could also greatly improve service for certain cargoes. Port Security With ongoing national efforts to provide secure global gateways for the international trade of goods, the threat of a terrorist attack on one of the nation's major ports is very real. A port terrorist attack on the West Coast could potentially halt commercial port operations and subsequently impact the nation's ability to conduct international trade. An alternative port would be needed to accommodate cargo that has been diverted from the affected port. In the event of national emergency the Port of Hueneme could provide additional capacity for cargo that has been diverted due to events of this nature. This would reduce the impact on import operations and allow goods to continue to flow to inland _y; consumer markets until the affected port resumed operations. 15 Fast Ship Technology ShortSea Shipping Barge Photos Courtesy of MARAD • Additional Benefits continued i Contingency Port The military benefits from this Strategic Development Plan include the creation of a mobilization and deployment contingency port to accommodate military sealift operations. Although the NBVC — Port Hueneme has not been used for extensive military sealift operations in recent years, the port could play an important role in future deployment operations. By providing a state -of- the -art facility . with modern cargo handling equipment, the Port of Hueneme could potentially accommodate the (un)loading of Bob Hope Class LMSR vessels for overseas deployments. This would significantly reduce the Department of Defense budget for maintaining operational readiness by eliminating antiquated facilities and equipment, and by consolidating and /or relocating redundant functions to alternate military installations. . Efficient military sealift operations require modern marine terminals, cargo handling equipment and a skilled labor pool to deploy critical cargo during mobilization and sustainment scenarios. The initial stages of a major deployment i of forces from the continental United States carry a wide range of possible i scenarios depending upon mission requirements. These include infantry divisions, combat engineering groups, heavy and light armored divisions and several other logistical and support groups requiring significant volumes of supplies and equipment. Military sea -lift operations would greatly benefit from enhanced Port cargo handling capabilities. i Modern Rail Infrastructure There are benefits to be derived from a modern intermodal rail yard at the Port. The rail infrastructure could be used during load -out scenarios to receive trains s from inland installations carrying cargo and equipment critical to providing deployment requirements. This would allow inland military installations and i power projection platforms to be used for the storage and maintenance of heavy machinery, war stock and other supplies needed during sealift operations. In the case of NBVC — Port Hueneme, this would allow the majority of the current equipment and supplies to be relocated to an inland military installation where the climate is more conducive to long -term storage. The relocation of existing NBVC storage facilities would also free up underutilized acreage effectively reducing the Department of Defense annual budget without loss of operational readiness. 16 Military Mobilization Operations Notes and Ackn 0 .rn With the support of., Admiral Harold W. Gehman Jr. (RET.) Vice Admiral Albert J. Herberger (RET.) Rear Admiral Carl Seiberlich (RET.) I ' fj 'M 6 ,n Leeper, Cambridge, and Campbell Gill V. Hicks and Associates, Inc.