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  




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          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.




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                 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  




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               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  




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               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. 





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               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  




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          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.