BILL ANALYSIS SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: SB 607 SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: ducheny VERSION: 4/13/09 Analysis by: Art Bauer FISCAL: yes Hearing date: April 14, 2009 SUBJECT: Imperial country transportation commission DESCRIPTION: This bill creates the Imperial County Transportation Commission and provides that it is the successor agency to the Imperial Valley Association of Governments (IVAG). ANALYSIS: Existing law: 1. Authorizes local agencies to voluntarily form joint powers agencies for purposes of conducting regional transportation planning, the administration of the terms and conditions of the Transportation Development Act TDA, and related planning activities. (The TDA program, California's basis transit funding program, is funded from a percent local sales tax in each county.) The County of Imperial, the seven cities in the county, and the Imperial Irrigation District (IID) formed a joint powers agency to perform regional transportation planning and related activities. 2. Creates several transportation planning agencies for carrying out regional transportation planning, administering the terms and conditions of the TDA, and related planning activities. 3. Designates the Southern California Association of SB 607 (DUCHENY) Page 2 Governments (SCAG), the multicounty transportation planning agency for the counties of Imperial, Los Angeles, Orange, Riverside, San Bernardino, and Ventura. 4. Transfers the responsibility for allocating TDA revenues in the jurisdiction of SCAG to county transportation agencies and to Imperial County. 5. Requires county transportation planning agencies with the jurisdiction of the SCAG-the Los Angeles Metropolitan Transportation Agency, the Orange County Transportation Authority, the Riverside County Transportation Commission, and the San Bernardino Associated Governments-to enter into various agreements with SCAG pertaining to the division of responsibility between SCAG and the county commission for conducting regional transportation planning. 6. Authorizes SCAG to prepare the long-range regional transportation plan (RTP), to coordinate the plans of the county commissions with the RTP, to resolve conflicts between the plans of the county commissions and the RTP, to prepare the overall work program for its area of jurisdiction as a condition of receiving federal funds, and other related tasks. This bill: 1. Creates the Imperial County Transportation Commission (ICTC) to conduct specified transportation planning and related activities within the incorporated and unincorporated areas of Imperial County. 2. Establishes a governing board consisting of up to 15 members of whom ten will be voting members, one designated nonvoting member, and up to up to four nonvoting, ex-officio members. The ten voting members include one representative from each of seven incorporated cities in the county, two members of the Imperial County board of supervisors, one member representing the IID. A designated nonvoting member representing the state Department of Transportation (Caltrans). The four nonvoting, ex-officio SB 607 (DUCHENY) Page 3 members, whom the voting members may invite to participate on the governing board include, one member representing the State of Baja California, one member representing the municipality of Mexicali, Mexico, one member representing the national government of Mexico, and one member representing any federally recognized Native American tribe in Imperial County. 3. Authorizes the voting members of the board to elected officers, establish procedures, retain and set the compensation of staff, establish board committees composed of at least three board members, adopt an annual budget, and an administrative code, and commission an annual audit. 4. Authorizes the board to appoint a technical advisory committee of all the transit operators in the county, all the incorporated cities in the county, the county of Imperial County, and Caltrans. 5. Authorizes ICTC to use up to one percent of the revenues in the local transportation fund for the agency's administrative and program responsibilities. 6. Mandates that ICTC, in consultation with its members and the public, prepare a three-to-five-year short-range transportation plan that includes a transportation improvement program to include all transportation projects funded with state, local, and federal funds in the county. The development of the transportation improvement program shall be coordinated with SCAG and shall be consistent with SCAG's regional transportation plan. 7. Mandates ICTC and SCAG to enter into a memorandum of understanding specifying the process for preparing the transportation improvement program. 8. Authorizes ICTC to continue to manage the TDA program, including allocating funds to transit operators and local streets and roads. 9. Authorizes ICTC to prepare the short-range transit plan require by TDA. COMMENTS: 1. Purpose . This bill coverts a voluntary organization, the SB 607 (DUCHENY) Page 4 Imperial Valley Council of Governments, to a statutory regional transportation planning agency, the ICTC. 2. Background . For about 30 years the county, cities, and the IID of Imperial have operated a regional transportation planning agency, the Imperial Valley Association of Governments (IVAG), created by a joint powers agreement among the participating jurisdictions. This bill formalizes in statute the joint powers agency by creating the ICTC. There is a separate transportation agency in Imperial County called the Imperial County Local Transportation Authority, which manages a local, voter-approved transportation sales tax. The tax was scheduled to expire in 2010, but last November, Imperial County voters approved a 40-year continuation of the tax. 3. Governing board composition is unusual . One of the unusual features of this bill is that the governing board includes a special district, the IID. County officials argue that most of the roads in Imperial County are adjacent to canals and drains operated by IID, or adjacent to the right-of-way of IID electric transmission lines. The philosophy underlying the governing boards of statutorily created regional transportation planning agencies is that they are forums for representatives from general purpose local governments, all of whom have both transportation and land use responsibilities. The governing boards may serve as a venue to coordinate intergovernmental land use and transportation decisions. This is especially important with the increasing emphasis on coordinating land use and transportation decision, as exemplified by SB 375 (Steinberg), Chapter 728, Statutes of 2008. If this model were followed elsewhere, the Metropolitan Water District would have a voting position on the governing boards of the four county transportation commissions in the Los Angeles basin. While Imperial County appears rural today, by 2020, it will likely have sufficient population to be designated a small metropolitan planning organization, much as Shasta and Butte counties are today. The committee may wish to consider an amendment to remove the IID from the governing board and assign a position for the IID on the permanent technical advisory committee. The committee may further wish to consider an amendment that would replace the IID representative with a citizen representative appointed by the ICTC governing board. This is a practice followed by many other transportation planning agencies, including the SB 607 (DUCHENY) Page 5 Orange County Transportation Authority (OCTA), which is also located in the jurisdiction of SCAG. 4. Unclear who appoints the Caltrans representative . As amended, this bill removes the governor's authority to appoint a representative to ICTC's governing board. Where there is a state representative on the governing board of a regional transportation planning agency, the governor makes the appointment. Typically, the governor appoints the Caltrans district director in which the planning agency is located. In the case of ICTC, it would be the Caltrans district 11 director who is responsible for managing Caltrans' programs and projects in San Diego and Imperial counties. The formulation of the appointment in the current version of the bill has the Department of Transportation making the appointment. A "department" cannot make an appointment. The committee may wish to amend the bill authorizing the governor to appoint a representative of Caltrans, as a nonvoting, ex-officio member, to the governing board of ICTC. 5. Limits funding for administrative purposes . Existing law generally provides regional transportation planning agencies to use up to three percent of TDA revenues, which are deposited in the Local Transportation Fund, for planning and administrative purposes. That formulation was in this bill as it was introduced. A recent amendment to this bill limits funding for administrative and planning purposes to one percent. The argument of county officials is that the local sales tax program limits administrative cost to one percent of sales tax revenues, and this bill should be consistent with that practice. The local sales tax program however, is a project development and construction program. As such, the cost of the project development, primarily environmental documentation, preliminary engineering, and final engineering, is assigned to the specific projects. There is no need for the sales tax agency to perform ongoing transportation planning, because it will be the responsibility of ICTC. The conventional formulation provides ample local discretion to determining the amount of funds for administration and planning, as the governing board can set the amount at any level, including one percent, up to the three percent cap. With the growing expectations of regional planning, as described above, the obligations of ICTC will undoubtedly grow in the future. The committee may wish to amend the SB 607 (DUCHENY) Page 6 bill to reflect the language as introduced, which allows up to three percent of the funds to be used for carrying out ICTC's responsibilities. POSITIONS: (Communicated to the Committee before noon on Wednesday, April 8, 2009) SUPPORT: None received. OPPOSED: None received.