BILL ANALYSIS SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 1175 SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: Torlakson VERSION: 6/1/09 Analysis by: Art Bauer FISCAL: YES Hearing date: July 7, 2009 SUBJECT: Bay Area state-owned toll bridges DESCRIPTION: This bill adds the Antioch and Dumbarton bridges to the Toll Bridge Seismic Retrofit Program and grants authorization for voter-approved toll increases. ANALYSIS: The Metropolitan Transportation Commission (MTC) is designated a multicounty regional transportation planning agency under state law and a metropolitan planning organization (MPO) under federal law. MTC is the transportation planning, coordinating and financing agency for the nine-county San Francisco Bay Area. The counties that comprise MTC include Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma. MTC is governed by a 19-member policy board. Fourteen commissioners are appointed directly by local elected officials. In addition, two members represent regional agencies - the Association of Bay Area Governments and the Bay Conservation and Development Commission. Finally, three nonvoting members have been appointed to represent federal and state transportation agencies and the federal housing department. The Bay Area Toll Authority (BATA) is an independent legal entity governed by the board of MTC. BATA manages and invests revenues from all tolls levied on the seven state-owned toll bridges: Antioch, Benicia-Martinez, Carquinez, Dumbarton, Richmond-San Rafael, San Francisco-Oakland Bay and San Mateo-Hayward. As part of these activities, BATA funds the day-to-day operations, facilities maintenance, and administration of the bridges. BATA also funds the long-term AB 1175 (TORLAKSON) Page 2 capital improvement and rehabilitation of the bridges. The long-term capital projects are funded Regional Measure (RM) 1 and RM 2, approved by voters in the seven counties served by the toll bridges. Two counties in the region, Napa and Solano, are excluded because they have no toll bridges. Each regional measure increased the toll by one dollar to fund the construction of two new bridges and various transportation projects in the toll bridge corridors. The Loma Prieta Earthquake of 1989 is the origin of the existing law governing the management of the seven state-owned Bay Area toll bridges. After that earthquake, the Department of Transportation (Caltrans) conducted an engineering review of the toll bridges and concluded that five of the seven had to be reconstructed to increase their structural integrity in the event of similar earthquakes. By 2005, the program to fund the improvements had a $3.6 billion shortfall. AB 144 (Hancock), Chapter 71, Statutes of 2005, was enacted to address the short fall. It did the following: Created an $8.685 billion financing plan to fund the Toll Bridge Seismic Retrofit Program (TBSRP), including imposing an additional $1 toll on the bridges. The TBSRP included the San Francisco-Oakland Bay Bridge, the San Mateo Bridge, the San Rafael-Richmond Bridge, the Carquinez Bridge, and the Benicia-Martinez Bridge. The Dumbarton and the Antioch bridges were relatively new and the engineering assessment concluded they did not require seismic upgrading. (The Golden Gate Bridge is under the jurisdiction of the Golden Gate Bridge, Highway, and Transportation District.) Established new project management oversight and reporting requirements, including the formation of the Toll Bridge Program Oversight Committee (TBPOC), which is composed of the executive director of Bay Area Toll Authority (BATA), the director of Caltrans, and the executive director of the California Transportation Commission (CTC). The committee reports quarterly to the Legislature and the CTC. Assigned responsibility for the administration of all toll revenues to BATA, established by SB 226 (Kopp), Chapter 328, Statutes of 1998, created to administer the $1 base toll on the Bay Area's seven state-owned toll bridges and oversee the RM 1 and RM 2 programs. AB 1175 (TORLAKSON) Page 3 Authorized BATA to set the toll schedule as may be necessary to meet its bond obligations. Required BATA to provide at least 30 days' notice to the transportation policy committee of each house of the Legislature, and to hold a public hearing, before adopting a toll schedule reflecting the increased toll rate. This bill : 1. Makes findings and declarations that to ensure the safety of motorists the Antioch and Dumbarton Bridges are in need of seismic safety retrofit. 2. Includes Antioch and Dumbarton Bridges in the TBSRP. 3. Transfers any cost savings in the TBSRP to BATA for expenditure on the Antioch and Dumbarton Bridges. 4. Authorizes BATA to increase tolls on the seven state-owned bridges in the Bay Area to complete the seismic safety retrofit program. 5. Requires the TBPOC to include the Antioch and Dumbarton Bridges in its oversight and reporting program. 6. Requires BATA to pay Caltrans for all bridge maintenance and operating requirements after it meets all debt service obligations. 7. Continuously appropriates to Caltrans money received from BATA for planning, design, construction, operation, maintenance, repair, replacement, rehabilitation, and seismic retrofit of the seven state-owned toll bridges. 8. Authorizes BATA's governing board to increase toll rates for the seismic program and provides that the toll structures may include discounts for vehicles classified by BATA as carpools and for users of electronic toll collection. 9. Authorizes BATA's governing board to place before voters in the seven counties that include state-owned toll bridges a proposed toll increase to fund a program of projects to improve the bridges and transportation facilities and AB 1175 (TORLAKSON) Page 4 services in the highway corridors serving the bridges. This bill prescribes the election procedures to be followed relative to these additional regional measures. 10. Requires Caltrans to conform to BATA's policies regarding vehicle occupancy standards for high-occupancy vehicle lanes that are approach lanes to the bridges. 11. Eliminates a three-year time for using $20 million in RM 2 funds for TransLink, MTC's transit smart card program. 12. 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 and prescribes procedures to follow for these collections. COMMENTS: 1. Purpose . This bill is intended to fund the seismic safety retrofit needs of the Antioch and Dumbarton bridges. In addition, this bill recognizes that management of the seven state-owned bridges is an ongoing regional enterprise. To this end, this bill authorizes BATA to obtain voter approval for toll increases to fund specific programs or projects that improve the bridges and enhance mobility in the highway corridors leading to them. Further, this bill authorizes BATA to increase tolls as necessary to ensure the integrity of the toll bridge seismic program. This eliminates the likelihood of State Highway Account revenue being used in the future to fund bridge repair needs. The bill also allows BATA to manage the traffic flows on the approach lanes serving the bridges under its jurisdiction. Finally, the bill improves the management and collection of toll revenue. 2. Better understanding of seismic risks . The Antioch and Dumbarton bridges were constructed in 1978 and 1982, respectively, and designed to seismic standards developed after the 1971 Sylmar earthquake in Los Angeles County. When the TBSRP was crafted after the 1989 Loma Prieta Earthquake, Caltrans considered the bridges too new and up- to-standard to be included in the program. The geotechnical and engineering research initiated after the Loma Prieta Earthquake, the 1994 Northridge Earthquake, and the 1995 AB 1175 (TORLAKSON) Page 5 earthquake in Kobe, Japan resulted in the revamping of the standards governing seismic engineering for bridges. A two-year evaluation conducted by BATA and Caltrans in 2008 concluded both bridges needed significant strengthening to protect public safety. The cost of upgrading the Antioch Bridge is estimated to be $313 million, and the estimate for the Dumbarton Bridge is $637 million. The cost estimates include a 40 percent contingency to account for unanticipated issues during the four-year construction project. 3. Regionalization of tolls . Beginning in the 1980s the state initiated a policy to shift responsibility for funding state and local transportation improvements to local agencies by authorizing county transportation agencies to seek voter approval for local transportation. These local taxes have become the principle source of revenue for new state highway and mass transit facilities, as the state highway program supported by the existing excise tax on gasoline is almost entirely focused on maintenance and rehabilitation. The state last authorized increasing the gas tax in 1990 and most of the revenue from that nine-cents per gallon increase was initially used to improve the seismic integrity of state highway bridges throughout California. Consistent with the theme local responsibility for the development of the transportation system, MTC introduced the concept of voter-approved toll increases as a means of funding improvements to the toll bridges and in the corridors serving the bridges. The tolls, classified as fees and not taxes, only require a majority vote to be imposed. In November 1988, the voters of the seven Bay Area counties connected by the toll bridges approved RM 1, which authorized a standard auto toll of $1 for all seven state-owned Bay Area toll bridges. The additional revenues raised by the toll financed several major projects, including a new west span between Vallejo and Crockett and the east span of the Benicia-Martinez Bridge. Bay Area voters approved RM 2 in March 2004. This measure increased the toll by an additional dollar and funds the Regional Traffic Relief Plan, which includes a variety transit and highway projects in corridors leading to the bridges. AB 1175 (TORLAKSON) Page 6 The current toll on the state-owned bridges is $4. The toll is comprised of $1 RM 1, $1 RM 2, and $2 for the seismic retrofit program. BATA can increase tolls to fund additional seismic improvements for the five bridges in the TBSRP program. The Antioch and Dumbarton Bridges are not TBSRP bridges. Both RM 1 and RM 2 required enabling legislation. AB 1175 transfers the responsibility for developing a program of projects and placing a toll increase before the voters to BATA. This provision and the authority to raise tolls for seismic purposes essentially take the state out of being responsible for funding the toll bridges and transfer the responsibility to the Bay Area. 4. Highway system management . Beginning in the late 1980's MTC, recognizing that state revenues were not keeping up with the increase in auto travel, began exploring the feasibility of traffic management strategies to obtain additional capacity from the regional highway system. In regard to the bridge component of the system, BATA assumed responsibility from Caltrans for managing FasTrac, the electronic toll collection system which is used on all of the seven state-owned bridges. After BATA's acquisition of FasTrac, the Golden Gate Bridge subscribed to the toll collection technology. Recently, San Francisco International Airport has installed FasTrac to collect parking fees. Clearly, FasTrac has become the toll collection standard for the Bay Area. BATA has also installed the 511 transportation information program, which can be accessed from cell phones and personal computers to obtain real-time traffic conditions and transit schedules. MTC's last two regional transportation plans include transportation system management strategies as a way to increase mobility throughout the region. The authorization in AB 1175 to establish discount tolls for eligible vehicles using FasTrac and the ability to price carpools as they cross the toll plazas are additional highway system management strategies to enhance the performance of the approach lanes and access to the bridges. Related legislation AB 744 (Torrico) authorizes BATA to acquire, construct, administer, and operate a value pricing for a high-occupancy vehicle network within the geographic jurisdiction of MTC. This AB 1175 (TORLAKSON) Page 7 bill is on file for the July 7, 2009 hearing. Assembly Votes: Floor: 49-29 Appr: 12-5 Trans: 9-2 POSITIONS: (Communicated to the Committee before noon on Wednesday, July 1, 2009) SUPPORT: Metropolitan Transportation Commission (sponsor) OPPOSED: None received.