BILL ANALYSIS AB 1175 Page 1 ASSEMBLY THIRD READING AB 1175 (Torlakson) As Amended June 1, 2009 Majority vote TRANSPORTATION 9-2 APPROPRIATIONS 12-5 ------------------------------------------------------------------ |Ayes:|Eng, Blumenfield, |Ayes:|De Leon, Ammiano, Charles | | |Hayashi, Furutani, | |Calderon, Davis, Fuentes, | | |Galgiani, Bonnie | |Hall, John A. Perez, | | |Lowenthal, | |Price, Skinner, Solorio, | | |John A. Perez, Solorio, | |Torlakson, Krekorian | | |Torlakson | | | | | | | | |-----+--------------------------+-----+---------------------------| |Nays:|Miller, Niello |Nays:|Nielsen, Duvall, Harkey, | | | | |Miller, | | | | |Audra Strickland | | | | | | ------------------------------------------------------------------ SUMMARY : Makes the Antioch and Dumbarton Bridges part of the Toll Bridge Seismic Retrofit Program (TBSRP); authorizes the Bay Area Toll Authority (BATA) to submit regional measures to voters for toll increases to fund improvements in toll bridge corridors; and, makes other, related changes to existing provisions related to high-occupancy vehicle (HOV) lanes, toll bridge maintenance, and operations. Specifically, this bill : 1) Directs the State Controller to collect unpaid bridge tolls, high-occupancy toll (HOT) lane fees, and any relevant interest, penalties, fines, or other charges from money owed a person or entity from state income tax refunds or winnings in the California State Lottery; prescribes procedures to follow for these collections. 2) States legislative findings and declarations that the Antioch and Dumbarton Bridges are in need of seismic safety retrofit. 3) Makes these two bridges part of the TBSRP. 4) Transfers any cost overrun savings in the TBSRP to the Bay Area Toll Account, under BATA and appropriates the savings to AB 1175 Page 2 BATA for expenditure on the Antioch and Dumbarton Bridges. 5) Prescribes that BATA is responsible for providing all other funds required to complete the seismic safety retrofit projects on these bridges. 6) Authorizes BATA to increase the amount of tolls collected on the seven state-owned San Francisco Bay Area toll bridges. 7) Applies provisions governing the Toll Bridge Program Oversight Committee (TBPOC) to the seismic retrofit of the Antioch and Dumbarton Bridges. 8) Coordinates bridge maintenance, operation, and bond repayment expenses. 9) Continuously appropriates to the California Department of Transportation (Caltrans) money paid to Caltrans by BATA for planning, design, construction, operation, maintenance, repair, replacement, rehabilitation, and seismic retrofit of state-owned toll bridges pursuant to TBSRP. 10)Eliminates the three-year time constraint for use of $20 million in Regional Measure (RM) 2 funds for TransLink, the Bay Area's smart card for transit. 11)Grants BATA the authority to increase toll rates and provides that the toll structures may vary from bridge to bridge and may include discounts for carpools and electronic toll collection (i.e., FastTrak). 12)Dictates that Caltrans must follow BATA's lead in the Bay Area with regard to establishing HOV occupancy levels, discounts, and HOV access criteria. 13)Authorizes BATA to increase tolls following voter approval of additional regional measures. 14)Prescribes the election procedures to be followed relative to additional regional measures. 15)Allows BATA to contribute to the Metropolitan Transportation Commission (MTC), without limitations, in the form of personnel services, office space, and funding; allows BATA to AB 1175 Page 3 contribute on a reimbursement-for-cost basis, under certain conditions. EXISTING LAW : 16)Makes it illegal to evade payment of tolls or other charges on any vehicle crossing or toll road. 17)Provides a financing plan to fund the TBSRP (for a total of $8.685 billion); identifies the sources and amounts of funding, including the authority to increase the seismic retrofit surcharge on state-owned toll bridges in the Bay Area, provides for a timeline of contributions, and establishes numerous other financial and programmatic requirements to complete TBSRP. 18)Creates the TBPOC, consisting of the Director of Caltrans, the Executive Director of the California Transportation Commission (CTC), and the Executive Director of MTC; vests TBPOC with project oversight responsibilities for the TBSRP. 19)Specifically authorizes BATA to increase the toll rates specified in the adopted toll schedule only if this is necessary in order to enable the authority to meet its obligations under any bond resolution or indenture. 20)Authorizes Caltrans and local authorities, with respect to highways under the respective jurisdictions, to permit preferential use of highway lanes for HOVs, under specific conditions. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)Potential unknown loss of state special fund revenue from transferring all cost overrun saving in the TBSRP. 2) One-time costs of $950 million to retrofit the Antioch and Dumbarton bridges, respectively, to be fully covered by a future bridge toll increase to be imposed by BATA. 3) Potentially significant one-time costs for BATA to reimburse county elections officials in the region for the incremental AB 1175 Page 4 cost of conducting a regional measure asking voter approval to fund transportation improvements. These costs would be covered by bridge toll revenues. COMMENTS : Toll Bridge Seismic Retrofit Program: According to MTC, "The Antioch Bridge (built in 1978), and the Dumbarton Bridge (built in 1982) need seismic strengthening. Because these bridges met seismic standards established after the 1971 Sylmar earthquake in Southern California, and were relatively new when the state Toll Bridge Seismic Retrofit Program originally was established, neither was included in the first round of investigations. However, due to findings from subsequent quakes-including Loma Prieta in 1989, Northridge in 1994 and Kobe (Japan) in 1995-seismic standards now are much higher. A two-year evaluation conducted by BATA and Caltrans completed in December 2008 shows both bridges need significant strengthening to protect public safety. "The cost of retrofitting both bridges is estimated at $950 million. This includes $637 million for the Dumbarton Bridge and $313 million for the Antioch Bridge. Over 40% of this total cost estimate is to fund a contingency account so that unexpected construction problems that may arise during the four-year process will not affect the funding plans." This bill will allow BATA to raise tolls on all seven Bay Area bridges to cover the cost to retrofit these two bridges. Toll Evasion: According to MTC, in 2007, toll evasions cost BATA about $7 million. That amount has been reduced to about $1.5 million, due to a comprehensive collection program but toll evasion still remains a problem. Future Regional Measures: MTC has had two regional measures to date: Regional Measure (RM1) in 1998 raised tolls to a uniform $1 and RM 2 in 2004 raised tolls by an additional $1. These two measures were approved by voters to fund additional transportation improvements in toll bridge corridors. Current law requires MTC to obtain legislative authority to submit a regional measures to Bay Area voters before it can raise tolls. This bill provides MTC with streamlined authority to submit regional measures to voters and requires that future regional measures include infrastructure projects, acquisition AB 1175 Page 5 of transit vehicles, transit operating assistance, and other improvements to reduce congestion and to improve travel on Bay Area bridges and related transportation corridors. HOV Lanes: MTC is proposing creation of a region-wide, value pricing HOV network. Because of this, it needs to ensure that the Bay Area bridges are consistent with Bay Area freeways relative to HOV usage so that, together, the region will be served with a unified network. Continuous Appropriation: A continuous appropriation will allow MTC to continue TBSRP work in the event of a budget impasse, which otherwise impedes the use of collected tolls until a budget is resolved. Related Legislation: AB 744 (Torrico) of 2009, would authorize BATA to acquire, construct, administer, and operate a value pricing HOV network program on state highways within the geographic jurisdiction of MTC, as specified; authorizes capital expenditures for this program to be funded from program revenues, revenue bonds, and revenue derived from tolls on state-owned toll bridges within the geographic jurisdiction of the commission; authorizes the use of the HOV lanes in the program by single-occupant vehicles for a fee, as specified. AB 744 passed out of the Assembly Appropriations Committee and will be sent to the Assembly Floor. Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093 FN: 0001292