BILL ANALYSIS �
AB 664
Page 1
Date of Hearing: April 24, 2013
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
AB 664 (Williams) - As Amended: April 19, 2013
SUBJECT : Gold Coast Transit District.
SUMMARY : Creates the Gold Coast Transit District Act.
Specifically, this bill :
1)Creates the Gold Coast Transit District (District).
2)States that on or after, July 1, 2014, the Gold Coast Transit
(GCT), which is a joint powers agency (JPA), is dissolved and
the District succeeds to, and is vested with, all the rights,
powers, duties, and obligations of the agency.
3)Provides that the District is the successor to the GCT's
interests in any property, its rights and obligations under
any contract, any outstanding indebtedness of the GCT, and its
rights under any grants, without the necessity of any further
action.
4)Requires the District to assume the duties of public transit
provider performed by the agency.
5)Specifies that the jurisdiction of the District extends
through Ventura County.
6)States that on and after July 1, 2014, the cities of Oxnard,
Santa Buenaventura, Port Hueneme, and Ojai and the
unincorporated areas of the County of Ventura, and the County
of Ventura are included within the District - and other cities
that subsequently qualify as members, as specified.
7)Allows any city within the County of Ventura, as specified, to
join as a member of the District upon approval of a resolution
by the city council.
8)Requires, upon dissolution of the GCT, that employees of the
GCT shall be deemed to be employees of the District without
any break in service or any loss or reduction of compensation
or benefits, except as may be imposed by express action of the
GCT Board of Directors (Board).
AB 664
Page 2
9)Provides for the transfer of assets from GCT to the District
and provides for the member agencies of the District to claim
local transit funds as apportioned by the Ventura County
Transportation Commission.
10)Requires the District to be governed by a five-member Board,
which may be expanded with the addition of new member cities,
but shall not exceed 11 members.
11)Requires each member jurisdiction to appoint one regular
member and one alternate member to the Board.
12)Requires Board members to be a member of the governing body
of the appointing member jurisdiction.
13)States that each member shall serve solely at the pleasure of
the appointing member jurisdiction.
14)Allows the Board to designate one or more ex officio members
based on the District's adopted procedures and to elect a
president and a vice president at each of its organizational
meetings.
15)Requires all actions of the Board to be by majority vote,
with each director given one vote except for votes on the
annual budget, midyear budget changes and amendments, and
capital expenditures of five million dollars or more - which
will be done by a weighted vote.
16)Establishes the weighted votes to be used for budget votes
based on annual population estimates of the Department of
Finance, as follows:
a) One vote for a director appointed by a member whose
population is under 100,000; or,
b) Two votes for a director appointed by a member whose
population is 100,000 or more.
1)Requires a majority of the Board or a majority of committee
members present for all official acts.
2)Requires acts of the Board to be expressed by motion,
resolution, or ordinance.
AB 664
Page 3
3)Specifies that the meetings of the Board are subject to the
Ralph M. Brown Act.
4)Requires the Board to do all the following:
a) Create and administer funds of the District;
b) Adopt an annual budget;
c) Fix the compensation of the District's officers and
employees;
d) Set fares for public transit service, by resolution;
e) Adopt bylaws for its proceeding consistent with state
law;
f) Adopt an administrative code, by ordinance, which
prescribes the powers and duties
of the District officers, the method of appointment of the
District employees, and methods procedures, and systems of
operation and management of the District;
g) Make determination of policy for the District;
h) Adopt a conflict-of-interest code;
i) Cause a post-audit of the financial transactions and
records of the District to be made at least annually by a
certified public accountant;
j) Adopt priorities reflecting the District's goals; and,
aa) Do any and all things necessary to carry out the
purposes of this act.
1)Allows service to be provided to points outside the member
territories, with prior approval of the nonmember city, if
determined by the Board to be within the District's
capabilities.
2)Requires the District to do the following:
a) Provide, operate, manage, and maintain a public
transportation services serving and connecting the
territories of the members;
AB 664
Page 4
b) Provide a standardized system of fares and a uniform
system of transfers, and for any changes in fares or
changes in routes for a public hearing on a proposed
change, detailed notice to member's governing bodies and
the public at least 30 days prior to the proposed hearing
except for minor changes, as specified;
c) Adopt an annual operating and capital expenditure budget
and a five-year capital expenditure and notice the time and
place of a public hearing on the adoption of the annual
budget no less than 15 days prior to the hearing;
d) Provide for and submit to an annual independent audit of
total operations and file it with the finance officer in
each member agency no later than 120 days following the
close of each fiscal year;
e) Provide for insurance coverage of liability, operations,
and assets;
f) Provide for District employee retirement benefits under
the California Public Employees Retirement System or other
system provided by law;
g) Seek out and make maximum use of all available programs
of assistance; and,
h) Keep and maintain records and books of accounts in
accordance with existing law.
1)Authorizes the District to own, operate, manage, and maintain
a public transit system and associated facilities, with the
following powers:
a) Create and administer funds and the distribution of
those funds;
b) Create and enact taxes, fees, fares, and penalties, as
permitted by law;
c) Issue revenue bonds to pay for capital facilities;
d) Submit to voters of the District ballot measures for the
imposition of taxes;
AB 664
Page 5
e) Impose and administer fees, if approved, and other
funding sources secured for transportation system
operation, maintenance, and improvement;
f) Advocate and act on behalf of all members with their
concurrence to further the District's transit interests,
funding, projects, and priorities;
g) Promulgate a plan for funding transportation projects
within its jurisdiction;
h) Provide transportation services or facilities outside
the District's jurisdictional boundaries if the Board makes
a finding that those services or facilities benefit the
citizens or users of the transportation service, subject to
applicable law;
i) Enact ordinances, resolution, policies, and guidelines;
j) Apply for and receive public and private grants;
aa) Employ agents and employees to carry out its powers and
duties and to contract for professional services;
bb) Make and enter into contacts;
cc) Acquire, convey and dispose of real and personal
property;
dd) Enforce criminally or civilly, and all ordinances,
resolutions, and policies as permitted by law;
ee) Create standing and ad hoc committees, as deemed
necessary;
ff) Incur and encumber debts, obligations, and liabilities,
including, but not limited to, bonds, notes, warrants, and
other forms of indebtedness;
gg) Invest money in the District treasury that is not needed
for immediate necessities, as specified by current law;
hh) Pursue collection of obligations owed to the District;
AB 664
Page 6
ii) Sue and be sued;
jj) Exercise the right and power of eminent domain;
aaa) Hire an independent staff of its own or contact with any
department or agency of the United States or with any
public agency;
bbb) Contract with public or private entities in conformance
with applicable procurement procedures for the procurement
of engineering, project management, and contract management
services; and,
ccc) Adopt a seal and alter it.
1)Prohibits a member, individually or collectively, to be held
for any acts or omissions of the district, as specified.
2)States that all claims for money or damages against the
District are governed by the Government Claims Act,
established in existing law.
3)Allows territory within the District to be detached from the
district with a supermajority vote, which shall be at least
80% of the non-weighted vote of the Board.
4)Allows the District to dissolve with a supermajority vote of
the directors which shall be at least 80% of the non-weighted
vote of the Board. Prohibits the District from being fully
dissolved and terminated until all debts, financial
obligations, and liabilities are paid in full.
5)Provides that no reimbursement will be made because the local
agency is requesting the authority established by this bill.
EXISTING LAW establishes various local agencies to perform
specified powers and duties within a prescribed area of
jurisdiction, including transit agencies and transit districts.
FISCAL EFFECT : Unknown
COMMENTS :
1)Gold Coast Transit (GCT) is a JPA that provides fixed-route
AB 664
Page 7
bus and paratransit services in the cities of Ojai, Oxnard,
Port Hueneme, and Ventura and in the unincorporated county
areas between the cities. GCT operates 19 local bus routes in
a 91 square-mile service area with a population of over
375,000 people. GCT also manages ACCESS, a curb-to-curb
paratransit system that serves people with disabilities and
senior citizens who cannot use the regular bus system.
2)According to the author, "Currently, JPA members receive
transportation development act (TDA) funds but those funds are
first directed to the Ventura County Transportation Commission
(VCTC) who then directs the funds to each individual member
city on a population formula. One of the major benefits of
dissolving the JPA and instead forming a transit district is
that the new District will receive TDA funds for its members
directly from VCTC and allocate back to them any funding
necessary for locally operated services and locally
maintained transit facilities. By pooling funds, the District
can look beyond jurisdictional borders and more effectively
allocate services to meet the needs and demands of the area."
3)This bill would dissolve the existing GCT JPA and create a new
transit district in the western portion of Ventura County.
The existing members of the JPA (Ojai, Oxnard, Port Hueneme,
and Ventura), along with San Buenaventura, will be the members
of the Gold Coast Transit District. This bill establishes the
governing board of the District and requires that the District
operate and maintain public transportation services with a
standardized system of fares and transfers. This bill will
provide the District with the authority to levy special taxes,
which requires a two-thirds voter approval, and the ability to
issue revenue bonds. This bill is sponsored by the Gold Coast
Transit.
This bill requires a supermajority vote, at least 80% of the
non-weighted vote of the Board, to detach a territory from the
District or for the entire District to be dissolved. The
author is continuing to work with stakeholders to address
whether this threshold is too high, and may discourage small
cities from joining the District. The Committee may wish to
consider whether these provisions are not included in existing
law that establishes a number of other transit districts.
Generally, current law either allows the district to be
dissolved pursuant to the process established by the
AB 664
Page 8
Cortese-Knox-Hertzberg Local Government Reorganization Act of
2000 or allows the board to call an election at any time.
4)A related bill, SB 203 (Pavley), would repeal provisions
relating to the expenditure of Ventura County's local
transportation funds. SB 203 is scheduled to be heard in the
Senate Transportation and Housing Committee on April 26.
5)Support arguments : Supporters argue that because the current
JPA services are restricted to how much money is available
from each individual member, this bill will provide a better
structure for securing revenue and allow the District to fund
the greatest transit needs from a regional perspective.
Opposition arguments : None
6)This bill was heard in the Transportation Committee on April
8, 2013, and passed with a 16-0 vote.
REGISTERED SUPPORT / OPPOSITION :
Support
Gold Coast Transit [SPONSOR]
Alliance for Sustainable Equitable Regional Transportation
Central Coast Alliance United for a Sustainable Economy
County of Ventura
Santa Barbara Metropolitan Transit District
Service Employees International Union (SEIU) Local 721
Ventura Chamber of Commerce
Ventura County Transportation Commission
Opposition
None on file
Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916)
319-3958