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HomeMy WebLinkAbout14 LEGISLATIVE UPDATES 06-17-08AGENDA REPORT MEETING DATE: JUNE 17, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: CITY CLERK'S OFFICE SUBJECT: LEGISLATIVE REPORTS SUMMARY: Staff has prepared three (3) agenda reports that discuss the following legislative items: • Assembly Bill 3034 (Galgiani): Safe, Reliable High Speed Passenger Train Bond Act for the 21St Century AB 3034 (Galgiani) is proposed to amend prior law related to the California High Speed Rail System and place a $9.95 billion bond measure on the November 2008 statewide ballot. The existing Bond Act gives priority to the segment between San- Francisco and Los Angeles. The project provides for the potential extension of the High Speed Rail System into Orange County as Far south as the Irvine Rail Station. Staff revised the support letter considered at the June 3, 2008 Council Meeting to include the City Council's concerns regarding the incurrence of additional state debt. Staff recommends that the City send a letter expressing concerns regarding debt financing and support for AB 3034 with a request for an amendment to omit construction in the LOSSAN Corridor south of Anaheim in Orange County. Senate Bill 1316 (Correa): Transportation Facilities, Tolls, Orange and Riverside Counties • SB 1316 is intended to provide the Riverside County Transportation Commission (RCTC) the authority to develop and operate toll facilities in the median of SR 91 between SR 55 in Orange County and Interstate 15 in Riverside County. Staff is recommending that the City Council send a letter of support for this bill. Staff recommends that the City Council send a letter of support for Senate Bill 1316 to the author and local legislators. Page 2 • Assembly Bill 2175 (Laird): Water Conservation AB 2175 would require the Department of Water Resources (DWR) to establish a statewide target to achieve a 20% reduction in urban per capita water use in California by December 31, 2020. Staff recommends that that the City continue to monitor AB 2175. Additionally, Council may request staff to prepare informational reports, and/or letters of support/opposition on legislative matters that are time-sensitive and not agendized. RECOMMENDATION: Pleasure of the City Council. Maria R. Huizar Chief Deputy City Clerk AGENDA REPORT MEETING DATE: JUNE 17, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT SUBJECT: LEGISLATIVE REPORT - AB 3034 SAFE, RELIABLE HIGH-SPEED PASSENGER TRAIN BOND ACT FOR THE 21ST CENTURY SUMMARY AB 3034 (Galgiani) is proposed to amend prior law related to the California High Speed Rail System and place a $9.95 billion bond measure on the November 2008 statewide ballot. The existing Bond Act gives priority to the segment between San Francisco and Los Angeles. The project provides for the potential extension of the High Speed Rail System into Orange County as Far south as the Irvine Rail Station. Staff is recommending that the City Council support the proposed bill only if the bond measure is amended to exclude construction of the segment within the LOSASAN corridor south of Anaheim. Staff has revised the support letter to include the City Council's concerns regarding the incurrence of additional state debt. RECOMMENDATION Staff recommends that the City send a letter expressing concerns regarding debt financing and support for AB 3034 with a request for an amendment to omit construction in the LOSSAN Corridor south of Anaheim in Orange County. FISCAL IMPACT There is no fiscal impact associated with this item. BACKGROUND The California High Speed Rail Authority (Authority) was established in 1996 and is the state entity responsible for planning, constructing and operating ahigh-speed train system serving California's major metropolitan areas. The Authority has anine-member policy board (five appointed by the governor, two appointed by the Senate Rules Committee, and two by the speaker of the Assembly). In 2002 SB 1856, The Safe, Reliable High Speed Passenger Train Bond Act was approved by the legislature and authorized the sale of $9.95 billion in general obligation bonds upon voter approval at the November 2, 2004 statewide election. The intent was to partially fund the planning and construction of a high-speed train system linking California's major metropolitan areas with the San Francisco to Los Angeles Segment being the highest priority. In 2004, SB 1169 (Murray) delayed the bond authorization to the November 7, 2006 statewide election, and AB 713 (Torrico) of 2006 delayed it again to November 4, 2008 Legislative Report - AB 3034 Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century June 17, 2008 Page 2 AB 3034 contains the following amendments to the existing law: 1) Eliminates language specifying that, after the initial investment from the state to construct the initial segment, operating revenues and funds from the federal government and the private sector will be used to pay for expansion of the system. 2) Replaces language that requires the $9 billion of bond proceeds earmarked for high-speed rail to first be spent on the segment between San Francisco Trans-Bay Terminal and Los Angeles Union Station, with language that requires bond proceeds to be spent generally on all high-speed rail segments and the Altamont Corridor between the Central Valley and the East Bay. This bill requires the High Speed Rail Authority (HSRA) to give priority to those system segments that require the least amount of bond funding as a percentage of total cost, to consider the utility of that segment for other passenger rail services, and to ensure that other services will not result in any operating or maintenance cost to the authority. 3) References the 2005 High Speed Rail Environmental Impact Report instead of the High Speed Rail Final Business Plan of 2000. 4) Allows up to 10% of bond proceeds earmarked for the high-speed rail system (a maximum $900 million) to be used for environmental studies, planning and engineering activities. 5) Specifies that the $950 million in bond proceeds earmarked for intercity and commuter rail lines and urban rail systems can be allocated to systems that are part of the construction of the high-speed rail system. 6) Prohibits the siting of a high-speed rail station between the Merced station and the Gilroy station. This bill is an urgency measure and the deadline for a legislative measure to qualify for the November 4, 2008 statewide ballot is June 26. The cost to build the 800-mile system is estimated to be approximately $40 billion. The Authority anticipates that Federal funding be utilized to provide 25 to 33 percent of the construction costs and has identified various types of public-private partnership opportunities that could fund remaining costs, including project debt financing, vendor financing, system operations and private ownership. Legislative Report - AB 3034 Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century June 17, 2008 Page 3 HR 6003, The Passenger Rail Investment and Improvement Act of 2008, would provide $14.4 billion over five years to match state costs for high-speed systems. The federal match would be 80% of state investments, the same as federal highway funds whereas existing law makes public transportation eligible for only a 50% match. For service to Orange County, the Authority has proposed to utilize the existing rail corridor to a new terminal in Anaheim (ARTIC station) Later, the system could be extended approximately 14 miles to Irvine with a station at the Irvine Transportation Center. Based on cost estimates provided by the Authority, the cost of the segment could be as much as $1 billion based on the per mile cost of the entire Los Angeles to Irvine segment. In 2005, the Authority completed and certified a Program Environmental Impact Report/Environmental Impact Statement (EIR/EIS) for the entire project. A separate project level EIR/EIS for the Los Angeles-Orange County segment is in process and will only evaluate the route from Los Angeles to Anaheim. The EIR/EIS indicates that an additional project level EIR/EIS would be required for the Anaheim-Irvine project segment to analyze operational and constructability issues, right-of-way constraints, and environmental conditions. Because this is a statewide project and project funding could come from a variety of private and federal funding sources, this legislation and the ballot measure deserve some support in order to preserve the funding options for the project, particularly the LA to Anaheim County segment. However, in order to preclude the development of the Anaheim to Irvine segment of the project, the ballot measure should either prohibit the use of the bond funds for this segment or outright forbid construction in the LOSSAN corridor south of Anaheim in Orange County. Therefore, staff is recommending that the City Council authorize the Mayor to send a letter of support to the author, the Assembly Appropriations Committee and Tustin's legislators expressing concerns regarding the incurrence of additional state debt and with a request to amend the measure to exclude construction of the LOSSAN corridor south of Anaheim in Orange County. Tim D. Serlet Director of Public Works/City Engineer TDS:Assembly Bill 3034 Attachment: AB 3034 Draft City Letter of Support AB 3034 Assembly Bill - Status CURRENT BILL STATUS MEASURE A.B. No. 3034 AUTHOR(S) Galgiani and Ma (Principal coauthor: Davis) (Coauthors: Aghazarian, Karnette, and Solorio) (Coauthors: Senators Alquist, Steinberg, and Torlakson). TOPIC Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century. HOUSE LOCATION SEN +LAST AMENDED DATE 04/21/2008 TYPE OF BILL Active Urgency Non-Appropriations 2/3 Vote Required Non-State-Mandated Local Program Fiscal Non-Tax Levy LAST HIST. ACT. DATE: 06/02/2008 Page 1 of 1 LAST HIST. ACTION In Senate. Read first time. To Com. on RLS. for assignment. COMM. LOCATION ASM APPROPRIATIONS COMM. ACTION DATE 05/07/2008 COMM. ACTION Set, first hearing. Referred to Appropriations suspense file. TITLE An act to amend Sections 2704.04, 2704.06, 2704.08, 2704.09, and 2704.095 of the Streets and Highways Code, and to amend Sections 1, 3, and 4 of Chapter 697 of the Statutes of 2002, relating to transportation, and declaring the urgency thereof, to take effect immediately. http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_3001-3050/ab_3034 bill_20080602_stat... 6/10/2008 AB 3034 Assembly Bill -AMENDED BILL NUMBER: AB 3034 AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 21, 2008 AMENDED IN ASSEMBLY APRIL 9, 2008 INTRODUCED BY Assembly Members Galgiani and Ma (Principal coauthor: Assembly Member Davis) Coauthors: Assembly Members Aghazarian, Karnette, and Solorio Coauthors: Senators Alquist, Steinberg, and Torlakson ) FEBRUARY 22, 2008 An act to amend Sections 2704.04, 2704.06, 2704.08, 2704.09, and 2704.095 of the Streets and Highways Code, and to amend Sections 1, 3, and 4 of Chapter 697 of the Statutes of 2002, relating to transportation, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 3034, as amended, Galgiani. Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century. Existing law, Chapter 697 of the Statutes of 2002, as amended by Chapter 71 of the Statutes of 2004 and Chapter 44 of the Statutes of 2006, provides for submission of the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century to the voters for approval at the November 4, 2008, general election. Subject to voter approval, the act would provide for the issuance of $9.95 billion of general obligation bonds, $9 billion of which would be available in conjunction with any available federal funds for planning and construction of a high-speed train system pursuant to the business plan of the High-Speed Rail Authority, and $950 million of which would be available for capital projects on other passenger rail lines to provide connectivity to the high-speed train system and for capacity enhancements and safety improvements to those lines. This bill would make various revisions to the bond act to be submitted to the voters. The bill would refer to construction of a high-speed train system consistent with the authority's certified environmental impact report of November 2005, rather than with the final business plan of June 2000. The bill would revise the descriptions of route corridors of the proposed high-speed train system. The bill would require excess revenues from operation of the high-speed train system beyond the amount needed for high-speed trait. purposes, as determined by the authority, to be used to finance construction of the high-speed train system, and any remaining revenue to be deposited in the General Fund. The bill would require that not more than 10% of bond proceeds be used for environmental studies, planning, and preliminary engineering activities, and would require the authority to have a detailed funding plan for each segment of the system that identifies the full cost of construction and the sources of revenues for that segment, prior to awarding a Page 1 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_3001-3050/ab_3034 bill_20080421_am... 6/10/2008 AB 3034 Assembly Bill -AMENDED construction contract for the segment. The bill would require the authority to give priority in selecting segments for construction to those segments that are expected to require the least amount of bond funds as a percentage of total cost of construction, among other considerations. This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1 of Chapter 697 of the Statutes of 2002, as amended by Section 1 of Chapter 71 of the Statutes of 2004, is amended to read: Section 1. (a) The continuing growth in California's population and the resulting increase in traffic congestion, air pollution, greenhouse gas emissions, and the continuation of urban sprawl make it imperative that the state proceed quickly to construct a state-of-the-art high-speed passenger train system to serve major metropolitan areas. (b) The High-Speed Rail Authority, after extensive studies and analysis, proposes the construction of a high-speed train system that serves major population centers in the state and that links regional and local transit systems to form an integrated transportation system throughout the state. The system will link all of the state's major population centers, including Sacramento, the Bay Area, the ________ ___-1 Cent ral Valley Los Angeles, the Inland Empire, Orange County, and San Diego. (c) The high-speed train system proposed by the authority will cost about one-third of what it would cost to provide the same level of mobility and service with highway and airport improvements and will contribute significantly toward a reduction in air pollution and global warming. (d) The high-speed train system, once it is completed and becomes operational, will contribute significantly toward the goal of reducing greenhouse gas emissions and other air pollutants and will help reduce California's dependence on foreign energy sources. (e) The high-speed passenger train bond funds are intended to encourage the federal government and the private sector to make a significant contribution toward the construction of the high-speed train system. (f) It is the intent of the Legislature that the entire high-speed train. system shall be constructed as quickly as possible in order to maximize ridership and the mobility of Californians, and that it be completed no later than 2020, and that all phases shall be built in a manner that yields maximum benefit consistent with available revenues. SEC. 2. Section 2704.04 of the Streets and Highways Code, as added by Section 2 of Chapter 697 of the Statutes of 2002, is amended to read: 2704.04. (a) It is the intent of the Legislature by enacting this chapter and of the people of California by approving the bond measure pursuant to this chapter to initiate the construction of a high-speed train system consistent with the authority's certified environmental impact report of November 2005. (b) (1) Nine billion dollars ($9,000,000,000) of the proceeds of bonds authorized pursuant to this chapter, as well as federal funds Page 2 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_3001-3050/ab_3034_bill_20080421 _am... 6/ 10/2008 AB 3034 Assembly Bill -AMENDED and other revenues made available to the authority, to the extent consistent with federal and other fund source conditions, shall be used for planning and eligible capital costs, as defined in subdivision (c), for the purpose of including, but not limited to, the following high-speed train system corridors: (A) Sacramento to Stockton to Fresno. (B) San Francisco Transbay Terminal to San Jose to Fresno. (C) Oakland to San Jose. (D) Fresno to Bakersfield to Palmdale to Los Angeles Union Station. (E) Los Angeles Union Station to Riverside to San Diego. (F) Los Angeles Union Station to Anaheim to Irvine. (G) Altamont Corridor connecting the Central Valley to the East Bay (2) Nothing in this section shall prejudice the authority's determination and selection of the alignment from the Central Valley to the Bay Area in its certification of the environmental impact report. -~~ (3) Revenues of the authority, generated by operations of the high-speed train system above and beyond operating and maintenance costs and financing obligations, as determined by the authority, shall be used to finance construction of the high-speed train system. If, after satisfaction of the foregoing, there remain additional revenues, those revenues shall be deposited in the General Fund. (c) Capital costs eligible to be paid from proceeds of bonds authorized for high-speed train purposes pursuant to this chapter include all activities necessary for acquisition of right-of-way, construction of tracks, structures, power systems, and stations, purchase of rolling stock and related equipment, and other related capital facilities and equipment. (d) Proceeds of bonds authorized pursuant to this chapter shall not be used for any operating or maintenance costs of trains or facilities. (e) The State Auditor shall perform periodic audits of the authority's use of proceeds of bonds authorized pursuant to this chapter for consistency with the requirements of this chapter. SEC. 3. Section 2704.06 of the Streets and Highways Code, as added by Section 2 of Chapter 697 of the Statutes of 2002, is amended to read: 2704.06. Nine billion dollars ($9,000,000,000) of the money in the fund, upon appropriation by the Legislature, shall be available, without regard to fiscal years, for planning and construction of a high-speed train system in this state, consistent with the authority' s certified environmental impact report of November 2005, as subsequently modified pursuant to environmental studies conducted by the authority. SEC. 4. Section 2704.08 of the Streets and Highways Code, as added by Section 2 of Chapter 697 of the Statutes of 2002, is amended to read: 2704.08. (a) Proceeds of bonds authorized for high-speed train purposes pursuant to this chapter shall not be used for more than one-half of the total cost of construction of track and station costs of each segment of the high-speed train system. (b) Not more than 10 percent of the proceeds of bonds authorized pursuant to this chapter shall be used for environmental studies, planning, and preliminary engineering activities. (c) In selecting each specific segment for construction and prior Page 3 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_3001-3050/ab_3034 bill_20080421_am... 6/10/2008 AB 3034 Assembly Bill -AMENDED to awarding a construction contract, the authority shall have a detailed funding plan for that segment that identifies the full cost of constructing the segment and the sources of all revenues needed to complete construction of the segment. (d) In selecting segments for construction, the authority shall give priority to those segments that are expected to require the least amount of bond funds as a percentage of total cost of construction, shall consider the utility of those segments for passenger rail services other than the high-speed train system, and shall ensure that any passenger service other than the high-speed train system provided on those segments will not result in any unreimbursed operating or maintenance cost to the authority. SEC. 5. Section 2704.09 of the Streets and Highways Code, as added by Section 2 of Chapter 697 of the Statutes of 2002, is amended to read: 2704.09. The high-speed train system to be constructed pursuant to this chapter shall have the following characteristics: (a) Electric trains that are capable of sustained maximum revenue operating speeds of no less than 200 miles per hour. (b) Maximum nonstop service travel times for each corridor that shall not exceed the following: (1) San Francisco-Los Angeles Union Station: two hours, 42 minutes. (2) Oakland-Los Angeles Union Station: two hours, 42 minutes. (3) San Francisco-San Jose: 31 minutes. (4) San Jose-Los Angeles: two hours, 14 minutes. (5) San Diego-Los Angeles: one hour. (6) Inland Empire-Los Angeles: 29 minutes. (7) Sacramento-Los Angeles: two hours, 22 minutes. (8) Sacramento-San Jose: one hour, 12 minutes. (c) Achievable operating headway (time between successive trains) shall be five minutes or less. (d) The total number of stations to be served by high-speed trains for all of the corridors described in subdivision (b) of Section 2704.04 shall not exceed 24. There shall be no station between the Gilroy station and the Merced station. (e) Trains shall have the capability to transition intermediate stations, or to bypass those stations, at mainline operating speed. (f) For each corridor described in subdivision (b), passengers shall have the capability of traveling from any station on that corridor to any other station on that corridor without being required to change trains. (g) In order to reduce impacts on communities and the environment, the alignment for the high-speed train system shall follow existing transportation or utility corridors to the extent possible and shall be financially viable, as determined by the authority. (h) Stations shall be located in areas with good access to local mass transit or other modes of transportation. (i) The high-speed train system shall be planned and constructed in a manner that minimizes urban sprawl and impacts on the natural environment. (j) Preserving wildlife corridors and mitigating impacts to wildlife movement, where feasible as determined by the authority, in order to limit the extent to which the system may present an additional barrier to wildlife's natural movement. SEC. 6. Section 2704.095 of the Streets and Highways Code, as added by Section 2 of Chapter 697 of the Statutes of 2002, is amended to read: 2704.095. (a) (1) Of the proceeds of bonds authorized pursuant to this chapter, nine hundred fifty million dollars ($950,000,000) Page 4 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_3001-3050/ab_3034 bill_20080421_am... 6/10/2008 AB 3034 Assembly Bill -AMENDED shall be allocated to eligible recipients for capital improvements to intercity and commuter rail lines and urban rail systems that provide direct connectivity to the high-speed train system and its facilities, or that are part of the construction of the high-speed train system as that system is described in subdivision (b) of Section 2704.04, or that provide capacity enhancements and safety improvements. Funds under this section shall be available upon appropriation by the Legislature in the Annual Budget act for the eligible purposes described in subdivision (d). (2) Twenty percent (one hundred ninety million dollars ($190,000,000)) of the amount authorized by this section shall be allocated for intercity rail to the Department of Transportation, for state-supported intercity rail lines that provide regularly scheduled service and use public funds to operate and maintain rail facilities, rights-of-way, and equipment. A minimum of 25 percent of the amount available under this paragraph (forty-seven million five hundred thousand dollars ($47,500,000)) shall be allocated to each of the state's three intercity rail corridors. The California Transportation Commission shall allocate the available funds to eligible recipients consistent with this section and shall develop guidelines, in consultation with the authority, to implement the requirements of this section. The guidelines shall include provisions for the administration of funds, including, but not limited to, the authority of the intercity corridor operators to loan these funds by mutual agreement between intercity rail corridors. (3) Eighty percent (seven hundred sixty million dollars ($760,000,000)) of the amount authorized by this section shall be allocated to eligible recipients, except intercity rail, as described in subdivision (c) based upon a percentage amount calculated to incorporate all of the following: (A) One-third of the eligible recipient's percentage share of statewide track miles. (B) One-third of the eligible recipient's percentage share of statewide annual vehicle miles. (C) One-third of the eligible recipient's percentage share of statewide annual passenger trips. The California Transportation Commission shall allocate the available funds to eligible recipients consistent with this section and shall develop guidelines to implement the requirements of this section. (b) For the purposes of this section, the following terms have the following meanings: (1) "Track miles" means the miles of track used by a public agency or joint powers authority for regular passenger rail service. (2) "Vehicle miles" means the total miles traveled, commencing with pullout from the maintenance depot, by all locomotives and cars operated in a train consist for passenger rail service by a public agency or joint powers authority. (3) "Passenger trips" means the annual unlinked passenger boardings reported by a public agency or joint powers authority for regular passenger rail service. (4) "Statewide" when used to modify the terms in paragraphs (A), (B), and (C) of paragraph (3) of subdivision (a) means the combined total of those amounts for all eligible recipients. (c) Eligible recipients for funding under paragraph (3) of subdivision (a) shall be public agencies and joint powers authorities that operate regularly scheduled passenger rail service in the following categories: (1) Commuter rail . Page 5 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_3001-3050/ab_3034 bill_20080421_am... 6/10/2008 AB 3034 Assembly Bill -AMENDED (2) Light rail. (3) Heavy rail. (4) Cable car. (d) Funds allocated pursuant to this section shall be used for connectivity with the high-speed train system or for the rehabilitation or modernization of, or safety improvements to, tracks utilized for public passenger rail service, signals, structures, facilities, and rolling stock. (e) Eligible recipients may use the funds for any eligible rail element set forth in subdivision (d). (f) In order to be eligible for funding under this section, an eligible recipient under paragraph (3) of subdivision (a) shall provide matching funds in an amount not less than the total amount allocated to the recipient under this section. (g) An eligible recipient of funding under paragraph (3) of subdivision (a) shall certify that it has met its matching funds requirement, and all other requirements of this section, by resolution of its governing board, subject to verification by the California Transportation Commission. (h) Funds made available to an eligible recipient under paragraph . (3) of subdivision (a) shall supplement existing local, state, or federal revenues being used for maintenance or rehabilitation of the passenger rail system. Eligible recipients of funding under paragraph (3) of subdivision (a) shall maintain their existing commitment of local, state, or federal funds for these purposes in order to remain eligible for allocation and expenditure of the additional funding made available by this section. (i) In order to receive any allocation under this section, an eligible recipient under paragraph (3) of subdivision (a) shall annually expend from existing local, state, or federal revenues being used for the maintenance or rehabilitation of the passenger rail system in an amount not less than the annual average of its expenditures from local revenues for those purposes during the 1998-99, 1999-2000, and 2000-01 fiscal years. (j) Funds allocated pursuant to this section to the Southern California Regional Rail Authority for eligible projects within its service area shall be apportioned each fiscal year in accordance with memorandums of understanding to be executed between the Southern California Regional Rail Authority and its member agencies. The memorandum or memorandums of understanding shall take into account the passenger service needs of the Southern California Regional Rail Authority and of the member agencies, revenue attributable to member agencies, and separate contributions to the Southern California Regional Rail Authority from the member agencies. SEC. 7. Section 3 of Chapter 697 of the Statutes of 2002, as amended by Section 3 of Chapter 44 of the Statutes of 2006, is amended to read: Sec. 3. Section 2 of Chapter 697 of the Statutes of 2002, as amended by Sections 2 and 3 of Chapter 71 of the Statutes of 2004, as further amended by Sections 1 and 2 of Chapter 44 of the Statutes of 2006, and as further amended by Sections 2 to 6, inclusive, of the act amending this section in the 2007-08 Regular Session, shall take effect upon the adoption by the voters of the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, as set forth in Section 2 of Chapter 697 of the Statutes of 2002, as amended by Sections 2 and 3 of Chapter 71 of the Statutes of 2004, as further amended by Sections 1 and 2 of Chapter 44 of the Statutes of 2006, and as further amended by Sections 2 to 6, inclusive, of the act amending this section in the 2007-08 Regular Session. SEC. 8. Section 4 of Chapter 697 of the Statutes of 2002, as Page 6 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_3001-3050/ab_3034 bill_20080421_am... 6/10/2008 AB 3034 Assembly Bill -AMENDED amended by Section 4 of Chapter 44 of the Statutes of 2006, is amended to read: Sec. 4. (a) Section 2 of Chapter 697 of the Statutes of 2002, as amended by Sections 2 and 3 of Chapter 71 of the Statutes of 2004, as further amended by Sections 1 and 2 of Chapter 44 of the Statutes of 2006, and as further amended by Sections 2 to 6, inclusive, of the act amending this section in the 2007-08 Regular Session, shall be submitted to the voters at the November 4, 2008, general election in accordance with provisions of the Government Code and the Elections Code governing the submission of statewide measures to the voters. (b) Notwithstanding any other provision of law, all ballots of the November 4, 2008, general election shall have printed thereon and in a square thereof, exclusively, the words "Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century" and in the same square under those words, the following in 8-point type: "This act provides for the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century. For the purpose of reducing traffic on the state's highways and roadways, upgrading commuter transportation, improving people's ability to get safely from city to city, alleviating congestion at airports, reducing air pollution, and providing for California's growing population, shall the state build a high-speed train system and improve existing passenger rail lines serving the state's major population centers by creating a rail trust fund that will issue bonds totaling $9.95 billion, paid from existing state funds at an average cost of dollars ($ ) per year over the 30-year life of the bonds, with all expenditures subject to an independent audit?" The blank space in the question to appear on the ba.Llot pursuant to this subdivision shall be filled in by the Attorney General with the appropriate figure provided by the Legislative Analyst relative to the annual average cost of the bonds. Opposite the square, there shall be left spaces in which the voters may place a cross in the manner required by law to indicate whether they vote for or against the measure. (c) Notwithstanding Sections 13247 and 13281 of the Elections Code, the language in subdivision (b) shall be the only language included in the ballot label for the condensed statement of the ballot title, and the Attorney General shall not supplement, subtract from, or revise that language, except that the Attorney General may include the financial impact summary prepared pursuant to Section 9087 of the Elections Code and Section 88003 of the Government Code. The ballot label is the condensed statement of the ballot title and the financial impact summary. (d) Where the voting in the election is done by means of voting machines used pursuant to law in the manner that carries out the intent of this section, the use of the voting machines and the expression of the voters' choice by means thereof are in compliance with this section. SEC. 9. 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 to modify the provisions of a general obligation bond measure on the November 4, 2008, general election ballot that would authorize the issuance and sale of bonds for the financing of a high-speed passenger train system and for other related purposes, it is necessary that this act take effect immediately. Page 7 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_3001-3050/ab_3034 bill_20080421_am... 6/10/2008 DATE Assembly Member Cathleen Galgiani State Capitol Building, Room 2170 Sacramento, CA 94249-0017 Assembly Member Fiona Ma State Capitol Building, Room 2176 Sacramento, CA 94249-0012 RE: Assembly Bill 3034 Support if Amended. Dear Assembly Members Galgiani and Ma: The City wishes to express its concern and reservations regarding the proposed ballot measure to incur an additional $9.95 billion in debt during the current difficult economic conditions. The state general fund is facing unprecedented deficits and additional debt repayment obligations will exacerbate the structural issues confronting the State's general fund and could impose additional burdens on the state's taxpayers. If the legislature is determined to proceed with this legislation despite economic and budgetary uncertainties, the City of Tustin will support Assembly Bill 3034 only if it is amended to exclude the use of the LOSSAN rail corridor in Orange County south of Anaheim. The City appreciates your serious consideration of our position on this matter. Sincerely, Jerry Amante Mayor Assembly Member Chuck Devore , 70th District Assembly Member Todd Spitzer, 71st District Senator Richard Ackerman, 33rd District League of California Cities, Fax #916-658-8240 AGENDA REPORT MEETING DATE: JUNE 17, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION SUBJECT: LEGISLATIVE REPORT - 5.B 1316 (CORREA) TRANSPORTATION FACILITIES: TOLLS: ORANGE AND RIVERSIDE COUNTIES SUMMARY SB 1316 is intended to provide the Riverside County Transportation Commission (RCTC) the authority to develop and operate toll facilities in the median of SR 91 between SR 55 in Orange County and Interstate 15 in Riverside County. Staff is recommending that the City Council send a letter of support for this bill. RECOMMENDATION Staff recommends that the City Council send a letter of support for Senate Bill 1316 to the author and local legislators. FISCAL IMPACT There is no fiscal impact associated with this item. BACKGROUND SB 1316 is intended to provide the RCTC the authority to develop and operate new SR 91 Express Lanes in Riverside County and to use a portion of toll revenues to pay for this and a series of improvements planned for the SR 91 corridor as a whole The right to develop and operate toll facilities in the median of SR 91 between SR 55 in Orange County and Interstate 15 in Riverside County is contained in the existing franchise agreement between OCTA and Caltrans and in existing law under AB 1010 (Correa). Express Lanes currently exist on SR 91 in Orange County, but they end at the Orange County and Riverside County line. RCTC would like to extend the existing facilities from the county line to Interstate 15, as well as make other improvements to the corridor and this bill is intended to facilitate this project. Tim D. Serlet Director of Public Works/City Engineer TDS:Assembly Bill 1316 Attachment: SB 1316 Draft Letter of Support SB 1316 Assembly Bill - Status CURRENT BILL STATUS MEASURE S.B. No. 1316 AUTHOR(S) Correa (Principal coauthor: Assembly Member Spitzer) (Coauthors: Assembly Members Benoit and Solorio). TOPIC Transportation facilities: tolls: Orange and Riverside Counties. HOUSE LOCATION ASM +LAST AMENDED DATE 05/27/2008 TYPE OF BILL Active Non-Urgency Non-Appropriations Majority Vote Required State-Mandated Local Program Fiscal Non-Tax Levy LAST HIST. ACT. DATE: 06/05/2008 LAST HIST. ACTION To Com. on TRANS. COMM. LOCATION ASM TRANSPORTATION HEARING DATE 06/16/2008 TITLE An act to amend Section 130240 of, and to add Sections 130244 and 130245 to, the Public Utilities Code, relating to transportation. Page 1 of 1 http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_1301-1350/sb_1316 bill 20080605_statu... 6/10/2008 SB 1316 Senate Bill -AMENDED BILL NUMBER: SB 1316 AMENDED BILL TEXT AMENDED IN SENATE MAY 27, 2008 AMENDED IN SENATE APRIL 23, 2008 AMENDED IN SENATE APRIL 1, 2008 INTRODUCED BY Senator Correa (Principal coauthor: Assembly Member Spitzer) (Coautfiors: Assembly Members Benoit and Solorio) FEBRUARY 20, 2008 An act to amend Section 130240 of, and to add Sections 130244 and 130245 to, the Public Utilities Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST SB 1316, as amended, Correa. Transportation facilities: tolls: Orange and Riverside Counties. Existing law provides for the Orange County Transportation Authority to assume responsibility for a toll lane on State Highway Route 91 in Orange and Riverside Counties under an assignment of a franchise agreement between the Department of Transportation and a private toll road operator. Existing law authorizes the authority to issue bonds and impose tolls relative to this toll lane, but not to extend beyond 2030, at which point the toll lane would revert to the department. Existing law requires toll revenues from the toll lane to be used for capital and operating expenses of the toll lane, including debt service, and for transportation purposes related to State Highway Route 91. Existing law creates an advisory committee to make recommendations to the authority regarding the toll lane and related issues. This bill would authorize the Orange County Transportation Authority to eliminate its rights, interests, and obligations in the Riverside County portion of the State Highway Route 91 toll lane by partial assignment to the Riverside County Transportation Commission or by amendment to the franchise agreement. The bill would delete the 2030 limitation on issuance of bonds and collection of tolls, and would provide for the reversion of the portion of the toll lane under the authority's control from the authority to the department at the expiration of the franchise agreement. The bill would authorize use of toll revenues for the toll lane and for other related transportation purposes in the Route 91 ?~?±~ corridor This bill would authorize the Riverside County Transportation Commission to impose tolls for 50 years on transportation facilities on its portion of State Highway Route 91, subject to extension beyond that time if reauthorized by the Legislature, and would authorize toll revenues to be used for capital and operating expenses of the facilities, including debt service, and for related transportation purposes in the Route 91 corridor. The bill would authorize the commission to issue bonds for transportation facilities within the Route 91 corridor. The bill would require reversion of the transportation facilities to the department after bonds are repaid unless tolls have been reauthorized by the Legislature. The bill would state that the commission is not entitled to compensation for the adverse effects on toll revenues from construction of competing Page 1 of 8 http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_1301-1350/sb_1316 bill_20080527_ame... 6/10/2008 SB 1316 Senate Bill -AMENDED facilities within the Route 91 corridor by the department or a local agency. These and other related provisions would only apply if the responsibility for the Riverside County portion of the Route 91 franchise agreement is transferred from the authority to the commission. The bill would delete the requirement for the existing State Highway Route 91 advisory committee and instead create a new advisory committee, with specified responsibilities. Members would be appointed by both the Orange County Transportation Authority and the Riverside County Transportation Commission, with costs of the committee to be shared by both entities. The bill would also require both entities to conduct an annual audit of toll revenues and expenditures. The bill would thereby impose a state-mandated local program. _ _ _ L . l l - - _ _ - _ _ _ _ _ _ _ _ 1~~~~_~T~____ ___~_ -Lry 11 ~!iP TI I_fi f~P ~t_i~Ltf3 iRT~t The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the st<ste. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 130240 of the Public Utilities Code is amended to read: 130240. (a) "Transit" means as defined in Section 40005. (b) (1) The Orange County Transportation Authority may acquire, construct, develop, lease, jointly develop, own, operate, maintain, control, use, jointly use, or dispose of rights-of-way, rail lines, monorails, guideways, buslines, stations, platforms, switches, yards, terminals, parking lots, air rights, land rights, development rights, entrances and exits, and any and all other facilities for, in~~idental to, necessary for, or convenient for transit service, including, but not limited to, facilities and structures physically or functionally related to transit service, within or partly without the county, underground, upon, or above the ground and under, upon or over public streets, highways, bridges, or other public ways or waterways, together with all physical structures necessary for, incidental to, or convenient for the access of persons and vehicles thereto, and may acquire, lease, sell, or otherwise contract with respect to any interest in or rights to the use or joint use of any or all of the foregoing. However, installations on state freeways are subject to the approval of the Department of Transportation and installations in other state highways are subject to Article 2 (commencing with Section 670) of Chapter 3 of Division 1 of the Streets and Highways Code. (2) With respect to the segment of State Highway Route 91 between State Highway Route 15 and State Highway Route 55 only, the Orange County Transportation Authority may exercise all of the powers Page 2 of 8 http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_1301-1350/sb_1316 bill 20080527_ame... 6/10/2008 SB 1316 Senate Bill -AMENDED contained in paragraph (1) that apply to streets, highways, bridges, and connector roads. (3) The exercise of the powers provided to the Orange County Transportation Authority in paragraph (2) is subject to approval by the Board of Supervisors of Riverside County and the Riverside County Transportation Commission and in consultation with the advisory committee described in Section 130245 as it relates to the use of those powers in Riverside County under the terms of the franchise agreement described in subdivision (c). (c) If the Orange County Transportation Authority requests, the department shall approve the assignment to the Orange County Transportation Authority of the Amended and Restated Development Franchise Agreement, as amended, between the department and the California Private Transportation Company, L.P. (CPTC) for the State Highway Route 91 median improvements as authorized by Section 143 of the Streets and Highways Code, subject to the requirement that subdivisions (a) to (f), inclusive, of Section 2 of Article 3 of the restated franchise agreement be deleted in their entirety in the event that CPTC and the authority agree to the assignment of all of CP'PC's interests in the franchise agreement to the authority. (d) The Orange County Transportation Authority shall have the authority to impose tolls for use of the State Highway Route 91 facilities as authorized by the franchise agreement. (e) (1) Toll revenues from the use of State Highway Route 91 facilities between State Highway Route 55 and the Orange and Riverside County line shall only be used by the Orange County Transportation Authority for the following expenditures relative to the State Highway Route 91 express lanes and for the purposes of paragraph (2): (A) Capital, operations, and maintenance, including, but not limited to, toll collection and enforcement. (B) Repair and rehabilitation. (C) Payment of purchase costs, debt service, and satisfaction of other covenants and obligations related to indebtedness. (D) Reserves. (E) Administration, which shall not exceed 3 percent of toll revenues and associated facility revenues (2) Excess toll revenues beyond the expenditure needs of paragraph (1) may be expended for the following purposes: (A) To enhance transit service designed to reduce traffic congestion on State Highway Route 91 or to expand travel options along the State Highway Route 91 corridor. Revenues expended under this subparagraph may be used to maintain the enhanced transit service. Eligible expenditures include, but are not limited to, transit operating assistance, the acquisition of transit vehicles, improvements to commuter rail traveling between Riverside and Orange Counties, and those transit capital improvements otherwise eligible to be funded under the State Transportation Improvement Program pursuant to Section 164 of the Streets and Highways Code. (B) To make operational or capacity improvements designed to reduce congestion or improve the flow of traffic on State Highway Page 3 of 8 http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_1301-1350/sb_1316 bill_20080527_ame... 6/10/2008 SB 1316 Senate Bill -AMENDED Route 91. Eligible expenditures may include any phase of project delivery to make capital improvements to on ramps, connector roads, roadways, bridges, or other structures that are related to the tolled and non tolled facilities on State Highway Route 91 between State Highway Route 55 to the west and the Orange and Riverside county line to the east. (3) The Orange County Transportation Authority, in consultation with the department and the Riverside County Transportation Commission, shall issue a plan and a proposed completion schedule for transportation improvements in the State Highway Route 91 ter- corridor The Orange County Transportation Authority shall update the plan on an annual basis. (f) The Orange County Transportation Authority may incur indebtedness and obligations, and may issue bonds, refund bonds, and assume existing bonds for purposes authorized by this section. Indebtedness and bonds issued under this section do not constitute a debt or liability of ,the state or any other public agency, other than the authority, or a pledge of the faith and credit of the state or any other public agency, other than the authority. Bonds issued under this section shall npt be deemed to constitute a debt or liability of the state or any political subdivision thereof, other than the bank and the authority, or a pledge of the faith and credit of the state or of any political subdivision, but shall be payable solely from the revenues and assets pledged to the repayment of the bonds. All bonds issued under this section shall contain on the face of the bond a statement to the same effect. (g) Notwithstanding Section 143 of the Streets and Highways Code, the State Highway Route 91 facility constructed and operated under the authority of a franchise agreement approved pursuant to that section shall revert to the state at the expiration of the lease or termination of the franchise agreement at no cost to the state. Upon reversion, the facility shall be delivered to the department in a condition that meets the performance and maintenance standards established by the department. (h) The Orange County Transportation Authority shall not impose to.11s for the use of nor construct and operate State Highway Route 91 facilities in the County of Riverside without prior approval by the Board of Supervisors of the County of Riverside, the Riverside County Transportation Commission, and the advisory committee. (i) The Orange County Transportation Authority shall not sell or assign its interest in the franchise agreement without approval by the Legislature by enactment of a statute provided that approval shall not be required in connection with granting rights and remedies to lenders under Article 16 of the restated franchise agreement. (j) If the Orange County Transportation Authority decides to sell or assign its interest in the franchise agreement, the Orange County Transportation Authority shall provide written notice at least 90 days in advance of the date they submit their request for approval by the department pursuant to this subdivision. The written notice shall be provided to the advisory committee created pursuant to Section 130245 and to the Riverside County Transportation Commission. (k) The Orange County Transportation Authority shall be authorized to eliminate its rights, interests, and obligations relative to State Highway Route 91 in Riverside County, either by partial assignment to the Riverside County Transportation Commission, or by amendment to the restated franchise agreement, as amended. In the event of a partial assignment or amendment, the department shall consent and the term of the restated franchise agreement, as amended by the partial assignment or amendment, shall be extended to a date Page 4 of 8 http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_1301-1350/sb_1316 bill_20080527_ame... 6/10/2008 SB 1316 Senate Bill -AMENDED determined by the authority, which date shall be no later than December 31, 2065. (1) If the Riverside County Transportation Commission constructs and operates toll facilities on State Highway Route 91 between the Orange County border and State Highway Route 15, then it is the intent of the Legislature that the Riverside County Transportation Commission and the Orange County Transportation Authority enter into an agreement providing for the coordination of the respective toll facilities operated by each entity on State Highway Route 91. SEC. 2. Section 130244 is added to the Public Utilities Code, to read: 130244. (a) For the purposes of this section, the following terms shall have the following meanings: (1) "Authority" means the Orange County Transportation Authority. (2) "Bonds" means bonds, notes, or other evidences of indebtedness authorized to be issued pursuant to paragraph (4) of subdivision (c) . (3) "Commission" means the Riverside County Transportation Commission. (4) "Department" means the Department of Transportation. (5) "Franchise agreement" means the franchise agreement assigned to the authority pursuant to subdivision (c) of Section 130240. (6) "Transportation facilities" means one or more of the following: (A) general purpose toll lanes; (B) lanes or facilities where the tolls may be levied and may vary according to levels of congestion anticipated or experienced or according to the occupancy of the vehicle; and (C) facilities or lanes utilizing combinations of or variations on (A) or (B), or other strategies the commission may determine appropriate on a facility-by-facility basis. (7) "Transportation project" means the planning, design, development, financing, construction, reconstruction, rehabilitation, improvement, acquisition, lease, operation, or maintenance, or any combination of these, with respect to tolled and nontolled facilities, structures, onramps, connector roads, bridges, and roadways that are on, necessary for, or related to the construction or operation of State Highway Route 91 between the Orange and Riverside County line to the west and State Highway Route 15 to the east. (b) Pursuant to subdivision (1) of Section 130240, the authority may amend, assign, or terminate the Riverside County portion of the franchise agreement in the interest of advancing the transportation project described in paragraph (7) of subdivision (a). The department, upon request of the authority, shall approve an amendment to the franchise agreement to eliminate any portion of State Highway Route 91 within Riverside County from the franchise agreement. (c) (1) The commission shall have the authority to set, levy, and collect tolls, user fees, or other similar charges payable for use of the transportation facilities, and any other incidental or related fees or charges, in amounts as required for the following expenditures relative to the transportation facilities as defined in paragraph (6) of subdivision (a) and for purposes of paragraph (2): (A) Capital outlay, including the costs of design, construction, right-of-way acquisition, and utility adjustment. (B) Operations and maintenance, including, but not limited to, toll collection and enforcement. (C) Repair and rehabilitation. (D) Indebtedness incurred, including related financing costs. (E) Reserves. (F) Administration, which shall not exceed 3 percent of toll revenues and associated facility revenues Page 5 of 8 http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_1301-1350/sb_1316 bill_20080527_ame... 6/10/2008 SB 1316 Senate Bill -AMENDED (2) Excess toll revenues beyond the expenditure needs of paragraph (1) may be expended for the following purposes: ~e rr~e-}~ (A) To enhance transit service designed to reduce traffic congestion on State Highway Route 91 or to expand travel options along the State Highway Route 91 corridor. Revenues expended under this subparagraph may be used to maintain the enhanced transit service. Eligible expenditures include, but are not limited to, transit operating assistance, the acquisition of transit vehicles, improvements to commuter rail traveling between Riverside and Orange Counties, and those transit capital improvements otherwise eligible to be funded under the State Transportation Improvement Program pursuant to Section 164 of the Streets and Highways Code. (B) To make operational or capacity improvements designed to reduce congestion or improve the flow of traffic on State Highway Route 91. Eligible expenditures may include any phase of project delivery to make capital improvements to on ramps, connector roads, roadways, bridges, or other structures that are related to the tolled and nontolled facilities on State Highway Route 91 between the Orange and Riverside county line to the west and State Highway Route 15 to the east. (3) The commission, in consultation with the authority and the department, shall issue a plan of transportation improvements for the State Highway Route 91 corridor, which shall include projected costs, the use of toll revenues, and a proposed completion schedule. This plan shall be updated annually. The plan and each annual update shall be made available for public review and comment no less than 30 days prior to adoption by the commission. (4) The commission is authorized to issue bonds to finance the costs of the transportation project, including the costs of issuing the bonds and paying credit enhancement and other fees related to the bonds, which bonds are payable from the tolls authorized pursuant to paragraph (1), sales tax revenues, development impact fees, ~ federal grant funds, or any other source of revenues available to the commission that may be used for these purposes. The bonds may be sold pursuant to the terms and conditions set forth in a resolution adopted by the governing board of the commission. Bonds shall be issued pursuant to a resolution adopted by a two-thirds vote of the commission. Any bond issued pursuant to this paragraph shall contain on -its face a statement to the following effect: "Neither the full faith and credit nor the taxing power of the State of California is pledged to the payment of principal or interest of this bond." (5) The department is authorized to enter into any lease, easement, permit, or other agreement with the commission necessary to Page 6 of 8 http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_1301-1350/sb_1316 bill_20080527_ame... 6/10/2008 SB 1316 Senate Bill -AMENDED accomplish the purposes of this section. (6) The commission shall have the authority to impose tolls for use of the transportation facilities for 50 years following the opening of the transportation facilities for public use, after which time the commission shall have no further authority to impose or to collect a toll for use of transportation facilities on State Highway Route 91, unless reauthorized by the Legislature. The transportation facilities shall revert to the department after the bonds issued pursuant to this section are paid off in their entirety, unless tolls have been reauthorized by the Legislature. Upon reversion, the facilities shall be delivered to the department in a condition that meets the performance and maintenance standards established by the department. (7) The commission shall make available for public review and comment the toll schedule and any subsequent proposed changes to the schedule no less than 30 days prior to the adoption by the commission of a toll schedule. (d) This section shall be supplemental and in addition to any other authority of the commission to undertake the transportation project. (e) This section shall not prevent the department or any local agency from constructing facilities within the State Highway Route 91 corridor that compete with the transportation project, and in no event shall the commission be entitled to compensation for the adverse effects on toll revenues due to those facilities. (f) If any provision of this section or the application thereof is held invalid, that invalidity shall not affect other provisions or applications of this section that can be given effect without the invalid provision or application, and to this extent the provisions of this section are severable. (g) This section shall not apply to State Highway Route 91 between the Orange and Riverside County line and State Highway Route 15 unless the authority amends or partially assigns the restated franchise agreement, as amended, between the department and the authority to exclude that portion of State Highway Route 91 from the restated franchise agreement, as amended. SEC. 3. Section 130245 is added to the Public Utilities Code, to read: 130245. (a) An advisory committee shall be created to review issues and make recommendations to the Orange County Transportation Authority and the Riverside County Transportation Commission regarding the facilities authorized pursuant to Sections 130240 and 130244, including tolls imposed, operations, maintenance, interoperability, and use of toll revenues, and improvements in the State Highway Route 91 corridor, including the identification and siting of alternative highways. The committee shall consist of 10 voting members and three nonvoting members, as follows: (1) Five members of the Board of Directors of the Orange County Transportation Authority appointed by that board. (2) Five members of the Riverside County Transportation Commission appointed by that commission. (3) One member of the San Bernardino Associated Governments appointed by that body, and the district directors of Districts 8 and 12 of the Department of Transportation, all of whom shall be nonvoting members. (b) The advisory committee shall establish rules for the conduct of committee meetings, which rules shall be approved by both the Orange County Transportation Authority and the Riverside County Transportation Commission. The authority and the commission may appoint alternates to the committee. Page 7 of 8 http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_1301-1350/sb_1316 bill 20080527_ame... 6/10/2008 SB 1316 Senate Bill -AMENDED (c) When reviewing the initial toll structure proposed by the Orange County Transportation Authority and the Riverside County Transportation Commission or any changes to the toll structure, the advisory committee shall place an information item on a regularly scheduled agenda for public comment and consideration of the advisory committee . (d) The Orange County Transportation Authority shall conduct an audit on an annual basis of the toll revenues collected and expenditures made during its operation of the facilities authorized in Section 130240. The audit shall review revenues and expenditures related to those facilities for consistency with that section and shall be provided to the advisory committee. (e) The Riverside County Transportation Commission shall conduct an audit on an annual basis of the toll revenues collected and expenditures made during its operation of the facilities authorized in Section 130244. The audit shall review revenues and expenditures related to those facilities for consistency with that section and shall be provided to the advisory committee. (f) The Orange County Transportation Authority and the Riverside County Transportation Commission shall equally share all costs associated with this section. None of these costs shall be paid from state funds. SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district are the result of a program for which legislative authority was requested by that local agency or school district, within the meaning of Section 17556 of the Government Code and Section 6 of Article XIII B of the California Constitution. Page 8 of 8 http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_1301-1350/sb_1316 bill_20080527_ame... 6/10/2008 June 9, 2008 The Honorable Lou Correa California State Senate State Capitol, Room 4062 Sacramento, CA 95814 Dear Senator Correa: RE: SB 1316 The City of Tustin is pleased to support SB 1316 (Correa), which will authorize the expansion of 91 Express Lanes along the Riverside Freeway (State Route 91) to Interstate 15. State Route 91 from Orange County to the Inland .Empire is nationally recognized as one of the most congested freeways in the county. The extension of the 91 Express Lanes into Riverside County would create an additional mobility option for commuters between Orange and Riverside counties. Recent surveys indicate that depending on the time of day, commuters reported an average savings of 30 minutes in drive time when using the toll lanes. This translates into an overall improvement in the quality of life for drivers. Less drive time in getting to work, more time with family in the evenings, reductions in fuel expenses, and air quality improvements due to the reduction of greenhouse gas emissions related to a decrease in idling vehicles are all benefits attributed to the 91 Express Lanes. An extension of the toll lanes would only add to these benefits. With over 14 million vehicle trips taken annually the 91 Express Lanes have proven to be a critical resource for drivers along this corridor. Customers of the toll lanes consistently express a high level of satisfaction in the use of the toll lanes. The customer satisfaction surveys taken in 2006 and 2007 both had over 80 percent of customers responding that they were satisfied with the toll lanes. Moreover, in the 2007 customer satisfaction survey, 80 percent of respondents said they were supportive of the plans to extend the 91 Express Lanes into Riverside County, wit 77 percent reporting that they would likely use the extension in both Orange and Riverside counties. SB 1316 will allow RCTC and OCTA to take the necessary and vital steps forward in alleviating traffic congestion on the State Route 91 Orange County-Inland Empire corridor. The City of Tustin strongly urges your support of SB 1316 (Correa). Sincerely, Jerry Amante Mayor Mayor & Council\SB 1316 expansion of 91 Express Lanes.docx AGENDA REPORT MEETING DATE: JUNE 17, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/WATER SERVICES DIVISION SUBJECT: LEGISLATIVE REPORT FOR AB 2175 (LAIRD) SUMMARY AB 2175 would require the Department of Water Resources (DWR) to establish a statewide target to achieve a 20% reduction in urban per capita water use in California by December 31, 2020. Staff is recommending that that the City continue to monitor AB 2175. RECOMMENDATION Staff recommends that that the City continue to monitor AB 2175. FISCAL IMPACT There is no fiscal impact associated with this item. BACKGROUND Existing law requires the California Department of Water Resources (DWR) to convene an independent technical panel to provide information to DWR and the Legislature on new demand management measures, technologies and approaches. This bill would require DWR to establish a statewide target to achieve a 20% reduction in urban per capita water use in California by December 31, 2020. The bill would also require DWR to adopt by 2010 a statewide agricultural water conservation target of not less than 500,000 acre-feet to be achieved by 2020. DWR would periodically review and determine whether to increase the agricultural conservation target. AB 2175 would also condition water management grant funding on compliance with conservation requirements, and would repeal existing water conservation implementation conditions on water management grants [per AB 1420) to local agencies on December 31, 2012. The Metropolitan Water District of Southern California (MWD) and the Association of California Water Agencies are in support of this bill. MWD has been working very closely with its member agencies to develop proposed amendments for the author's consideration. The ultimate objective is to set a general conservation goal while providing local agencies the flexibility they need to achieve conservation targets at the local level. A copy of the bill and its current status is attached for the City Council's information. Staff is recommending that the City continue to monitor AB 2175. Tim D. Serlet Director of Public Works/City Engineer Fred J. Adjarian Water Services Manager AB 2175 Assembly Bill - Status CURRENT BILL STATUS MEASURE A.B. No. 2175 AUTHOR(S) Laird and Feuer (Coauthors: Huffman, Krekorian, Ruskin, and Wolk). TOPIC Water conservation. HOUSE LOCATION SEN +LAST AMENDED DATE 05/23/2008 TYPE OF BILL Active Non-Urgency Non-Appropriations Majority Vote Required Non-State-Mandated Local Program Fiscal Non-Tax Levy LAST HIST. ACT. DATE: 05/29/2008 Page 1 of 1 LAST HIST. ACTION In Senate. Read first time. To Com. on RLS. for assignment. COMM. LOCATION ASM APPROPRIATIONS COMM. ACTION DATE 05/07/2008 COMM. ACTION Set, first hearing. Referred to Appropriations suspense file. TITLE An act to amend Section 10631.5 of, and to add Part 2.55 (commencing with Section 10608) to Division 6 of, the Water Code, relating to water conservation. http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_2151-2200/ab 2175 bill_20080602_stat... 6/10/2008 AB 2175 Assembly Bill -AMENDED BILL NUMBER: AB 2175 AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 23, 2008 AMENDED IN ASSEMBLY APRIL 8, 2008 INTRODUCED BY Assembly Members Laird and Feuer }~ Coauthors: Assembly Members Huffman, Krekorian, Ruskin, and Wolk ) FEBRUARY 20, 2008 An act to amend Section 10631.5 of, and to add Part 2.55 (commencing with Section 10608) to Division 6 of, the Water Code, relating to water conservation. LEGISLATIVE COUNSEL'S DIGEST AB 2175, as amended, Laird. Water conservation. (1) Existing law requires the Department of Water Resources to convene an independent technical panel to provide information to the department and the Legislature on new demand management measures, technologies, and approaches. "Demand management measures" means those water conservation measures, programs, and incentives that prevent the waste of water and promote the reasonable and efficient use and reuse of available supplies. This bill would require the department to establish a statewide target to achieve a 20o reduction in urban per capita water use in California by December 31, 2020. By December 31, 2020, each urban water supplier would be required to reduce its per capita water use by 20%, except as provided. , ~-c~~i~ rc~srber-~rm~ibrr-arceretrrca aro ai~a~~-t~-tr~a~~ The bill would require the department, by December 31, 2009, to establish a statewide numeric water conservation target for agricultural water use that provides for a significant increase in agricultural water conservation in California. -$p-HT t-argc~ By December 31, 2012, each agricultural water supplier would be required to adopt numeric water conservation targets to be achieved by December 31, 2015, and December 31, 2020. The bill would __________ require the department to adopt a plan of action to meet the state targets described above under certain circumstances. The bill would make related legislative findings and declarations and statements of legislative intent. (2) Existing law makes the terms of, and eligibility for, a water management grant or loan made to an urban water supplier and awarded or administered by the department, state board, or California Bay-Delta Authority or its successor agency conditioned on the implementation of specified water demand management measures. Page 1 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_2151-2200/ab_2175 bill_20080523_am... 6/10/2008 AB 2175 Assembly Bill -AMENDED This bill would make this provision only apply until December 31, 2012, and beginning January 1, 2013, would instead condition these grants or loans made to urban or agricultural water suppliers on the implementation of the requirements of paragraph (1), above. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Part 2.55 (commencing with Section 10608) is added to Division 6 of the Water Code, to read: PART 2.55. WATER CONSERVATION CHAPTER 1. GENERAL DECLARATIONS AND POLICY 10608. The Legislature finds and declares all of the following: (a) Water is a public trust resource in California that should be protected against waste and unreasonable use. (b) Growing population, climate change, and the need to protect California's fish and wildlife make it essential that the state manage its water resources as efficiently as possible. (c) In 2000, total water use in California was approximately 83 million acre-feet per year, based on an average water year.- This total water use consists of urban water use in the amount of 9 million acre-feet, agricultural water use in the amount of 34 million acre-feet, and environmental water use in the amount of 40 million acre-feet. (d) Reduced water use through conservation provides significant energy and environmental benefits, can help protect water quality, and reduces greenhouse gas emissions. (e) Improvements in technology and management practices offer the potential for increasing water conservation in California over time, providing an essential water management tool to meet the need for water for urban, agricultural, and environmental uses. (f) The California Water Plan, updated in 2005, includes planning scenarios that indicate that by 2030 urban water conservation can reduce water demand by up to 3.1 million acre-feet per year and agricultural water conservation can reduce net water use by up to 800,000 acre-feet of water per year. (g) The Governor has called for a 20 percent per capita reduction in urban water use statewide by 2020. 10608.1. It is the intent of the Legislature, by the enactment of this part, to require all water suppliers to identify, adopt, and implement water conservation measures to avoid waste and unreasonable use of this essential resource. CHAPTER 2. DEFINITIONS 10608.2. The following definitions apply to this part:. (a) "Base per capita water use" means the average of three water years, which tee- includes a normal, dry, and wet water year, as identified by the department and which most accurately reflects current water use in 2009. (b) "High per capita water use" means water use in an urban water supplier's service area that is gallons per capita per day or higher. Page 2 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab 2151-2200/ab_2175 bill_20080523_am... 6/10/2008 AB 2175 Assembly Bill -AMENDED (c) "Locally cost effective" means that the present value of the local benefits of implementing a water conservation measure are greater than or equal to the present value of the local costs of implementing that measure. (d) "Low per capita water use" means water use in an urban water supplier's service area that is gallons per capita per day or lower. (e) "Per capita water use" means the daily per person urban water use, which includes residential, municipal, industrial, and commercial water use and system water losses. (f) "Water conservation" means those measures, programs, and incentives that result in reduced demand, prevent the waste of water, and promote the efficient use of available supplies. (g) Except as otherwise indicated, "water supplier" includes both of the following: (1) An urban water supplier, as defined in Section 10617. (2) An agricultural water supplier, as defined in subdivision (b) of Section 531. CHAPTER 3. WATER CONSERVATION TARGETS 10608.4. (a) The department shall establish a statewide target to achieve a 20 percent reduction in urban per capita water use in California on or before December 31, 2020. (b) On or before December 31, 2013, and not less than every five years thereafter, the department shall include in the update of the California Water Plan pursuant to Section 10004, a status report on the progress in meeting the statewide target established by subdivision (a). (c) To the extent that the statewide target is not achieved on or before December 31, 2020, the department shall propose and adopt a plan of action to meet the statewide target. This plan shall specify the increased levels of water conservation that need to be implemented at the state and local levels. This increased level of conservation shall be supported by state funding or federal funding, if provided, because of the broad public benefits. 10608.6. (a) On or before December 31, 2020, each urban water supplier shall reduce its per capita water use by 20 percent, except as otherwise provided in subdivision (b). The 20 percent reduction shall be applied against the base per capita water use of the urban water supplier. Each urban water supplier shall make incremental progress by reducing per capita water use by at least 5 percent on or before December 31, 2012, and by 10 percent on or before December 31, 2015. (b) The department and the state board shall develop criteria to create both of the following: (1) Alternative conservation targets, less than the 20 percent reduction required by subdivision (a), to be applied to urban water suppliers that have and maintain low per capita water use. (2) Additional conservation targets, beyond the 20 percent reduction required by subdivision (a), to be applied to urban water suppliers that have high per capita water use. 10608.8. (a) On or before December 31, 2010, and every two years thereafter, an urban water supplier shall report to the department and the state board, using a standardized form developed by the department, all of the following information: (1) Base per capita water use. (2) Current per capita water use. (3) Current population served by the urban water supplier. (4) Acre-foot water savings attributed to the per capita water use Page 3 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_2151-2200/ab_2175 bill_20080523_am... 6/10/2008 AB 2175 Assembly Bill -AMENDED reductions. erre~etrre e-~eb~e~e-~~s~ r._,--------___-- -` S~ee•~re~l~+•-•~r-T~---r~k~~.lnr~inc~ the li.9t; i -~~ (b) Based on its review of the information submitted pursuant to subdivision (a), the department may require urban water suppliers to adopt specific water conservation measures if the reductions required by Section 10608.6 are not achieved. 10608.10. (a) On or before December 31, 2009, the department shall establish a statewide numeric water conservation target for agricultural water use that provides for a significant increase in agricultural water conservation in California. The initial target shall be for December 31, 2020, and shall be not less than 500,000 acre-feet of net water reduction from projected demand in the absence of additional agricultural water conservation practices, not otherwise attributed to land use changes. On or before December 31, 2012, and not less than every five years thereafter, the department shall review and may increase the water conservation target, based on consideration of all relevant information including, but not limited to, information received pursuant to this section. ' , tie a=rTi~r .; ~ .9 ~ i ~,T !'TITTIT ~ 1 m P.7Fr .9 h F] 1 1 F: fl I1.9 ~ 7 1 t be T~ a9 ~ ~l~ -~~ (b) On or before December 31, 2012, each agricultural water supplier shall adopt numeric water conservation targets to be achieved by December 31, 2015, and December 31, 2020, and report to the department on those targets. An agricultural water supplier shall review and update the targets every five years thereafter. The target shall be based on reductions that can be achieved by water management practices that are both technically feasible and locally cost effective, or implementation of alternative measures that achieve equal or greater water savings. -fir (c) On or before December 31, 2015, and every five years thereafter, an agricultural water supplier shall submit a report to the department, confirmed by independent evaluation, that identifies the basis of its adopted water conservation targets and its progress in reaching the targets. If an agricultural water supplier determines that a water ~e~rn±~-Frcd--rr~strb~l-rn-rs~orr-Fb}- management practice is not locally cost effective or technically feasible, the supplier shall submit information documenting that determination. ~~ (d) Based on its review of ~-ke• a report submitted pursuant to subdivision --Ee~r Page 4 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_Z151-2200/ab_2175 bill_20080523_am... 6/10/2008 AB 2175 Assembly Bill -AMENDED (c) and the related independent evaluation and other relevant information, the department may require an agricultural water supplier to revise its targets if the department determines the proposed targets are not consistent with this part, or to adopt additional water management practices, if there is insufficient progress in meeting the targets. 10608.12. To the extent that the aggregate of the agricultural water conservation targets established by agricultural water suppliers pursuant to subdivision -~~ (b) of Section 10608.10 do not meet the statewide target established pursuant to subdivision (a) of Section 10608.10, the department shall propose and adopt a plan of action to meet the statewide target. This plan shall specify the increased levels of water conservation that need to be implemented at the state and local levels , . This increased level of conservation shall be supported by state funding or federal funding, if provided, because of the broad public benefits. 10608.14. (a) Water suppliers may comply with this part individually or regionally. (b) Agricultural water supplier reporting requirements may be met through the submission of an agricultural water management plan developed for the Agricultural Water Management Council or the United States Bureau of Reclamation that is consistent with this part. 10608.16. (a) The department shall develop methodologies and guidelines as necessary to implement this part. (b) All state water conservation targets, methodologies, and guidelines -,~r,T; ----- -- -------- ---_ ----_-_---_- ~trr~ shall be established only after the department, or at the department's request, the California Water Commission, conducts a series of public hearings and workshops to allow participation of the diverse geographical areas and interest of the state. 10608.17. Beginning January 1, 2013, the terms of, and eligibility for, a water management grant or loan made to urban or agricultural water suppliers and awarded or administered by the department, state board, or California Bay-Delta Authority or its successor agency shall be conditioned on the implementation of this part. 10608.18. (a) The Legislature hereby finds and declares that the development, adoption, and implementation of water conservation targets as provided in this part is an issue of statewide significance that is critical to the effective implementation of integrated regional water management in California. (b) It is the intent of the Legislature that funds made available by Section 75026 of the Public Resources Code should be expended, consistent with Division 43 (commencing with Section 75001) of the Public Resources Code and upon appropriation by the Legislature, for grants to implement this part. In the allocation of funding, it is the intent of the Legislature that the department give consideration to disadvantaged communities to assist in implementing the requirements of this part. (c) It is the intent of the Legislature that funds made available by Section 75041 of the Public Resources Code should be expended, consistent with Division 43 (commencing with Section 75001) of the Public Resources Code and upon appropriation by the Legislature, for direct expenditures to implement this part. SEC. 2. Section 10631.5 of the Water Code is amended to read: 10631.5. (a) (1) Beginning January 1, 2009, until December 31, Page 5 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_2151-2200/ab_2175 bill_20080523_am... 6/10/2008 AB 2175 Assembly Bill -AMENDED 2012, the terms of, and eligibility for, a water management grant or loan made to an urban water supplier and awarded or administered by the department, state board, or California Bay-Delta Authority or its successor agency shall be conditioned on the implementation of the water demand management measures described in Section 10631, as determined by the department pursuant to subdivision (b). (2) For the purposes of this section, water management grants and loans include funding for programs and projects for surface water or groundwater storage, recycling, desalination, water conservation, water supply reliability, and water supply augmentation. This funding includes, but is not limited to, funds made available pursuant to Section 75026 of the Public Resources Code. (3) Notwithstanding paragraph (1), the department shall determine that an urban water supplier is eligible for a water management grant or loan even though the supplier is not implementing all of the water demand management measures described in Section 10631, if the urban water supplier has submitted to the department for approval a schedule, financing plan, and budget, to be included in the grant or loan agreement, for implementation of the water demand management measures. The supplier may request grant or loan funds to implement the water demand management measures to the extent the request is consistent with the eligibility requirements applicable to the water management funds. (4) (A) Notwithstanding paragraph (1), the department shall determine that an urban water supplier is eligible for a water management grant or loan even though the supplier is not implementing all of the water demand management measures described in Section 10631, if an urban water supplier submits to the department for approval documentation demonstrating that a water demand management measure is not locally cost effective. If the department determines that the documentation submitted by the urban water supplier fails to demonstrate that a water demand management measure is not locally cost effective, the department shall notify the urban water supplier and the agency administering the grant or loan program within 120 days that the documentation does not satisfy the requirements for an exemption, and include in that notification a detailed statement to support the determination. (B) For purposes of this paragraph, "not locally cost effective" means that the present value of the local benefits of implementing a water demand management measure is less than the present value of the local costs of implementing that measure. (b) (1) The department, in consultation with the state board and the California Bay-Delta Authority or its successor agency, and after soliciting public comment regarding eligibility requirements, shall develop eligibility requirements to implement the requirement of paragraph (1) of subdivision (a). In establishing these eligibility requirements, the department shall do both of the following: (A) Consider the conservation measures described in the Memorandum of Understanding Regarding Urban Water Conservation in California, and alternative conservation approaches that provide equal or greater water savings. (B) Recognize the different legal, technical, fiscal, and practical roles and responsibilities of wholesale water suppliers and retail water suppliers. (2) (A) For the purposes of this section, the department shall determine whether an urban water supplier is implementing all of the water demand management measures described in Section 10631 based on either, or a combination, of the following: (i) Compliance on an individual basis. (ii) Compliance on a regional basis. Regional compliance shall Page 6 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_2151-2200/ab_2175 bill_20080523_am... 6/10/2008 AB 2175 Assembly Bill -AMENDED require participation in a regional conservation program consisting of two or more urban water suppliers that achieves the level of conservation or water efficiency savings equivalent to the amount of conservation or savings achieved if each of the participating urban water suppliers implemented the water demand management measures. The urban water supplier administering the regional program shall provide participating urban water suppliers and the department with data to demonstrate that the regional program is consistent with this clause. The department shall review the data to determine whether the urban water suppliers in the regional program are meeting the eligibility requirements. (B) The department may require additional information for any determination pursuant to this section. (3) The department shall not deny eligibility to an urban water supplier in compliance with the requirements of this section that is participating in a multiagency water project, or an integrated regional water management plan, developed pursuant to Section 75026 of the Public Resources Code, solely on the basis that one or more of the agencies participating in the project or plan is not implementing all of the water demand management measures described in Section 10631. (c) In establishing guidelines pursuant to the specific funding authorization for any water management grant or loan program subject to this section, the agency administering the grant or loan program shall include in the guidelines the eligibility requirements developed by the department pursuant to subdivision (b). (d) Upon receipt of a water management grant or loan application by an agency administering a grant and loan program subject to this section, the agency shall request an eligibility determination from the department with respect to the requirements of this section. The department shall respond to the request within 60 days of the request. (e) The urban water supplier may submit to the department copies of its annual reports and other relevant documents to assist the department in determining whether the urban water supplier is implementing or scheduling the implementation of water demand management activities. In addition, for urban water suppliers that are signatories to the Memorandum of Understanding Regarding Urban Water Conservation in California and submit biennial reports to the California Urban Water Conservation Council in accordance with the memorandum, the department may use these reports to assist in tracking the implementation of water demand management measures. Page 7 of 7 http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab 2151-2200/ab_2175 bill 20080523_am... 6/10/2008