BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: Ab 664
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  Williams
                                                         VERSION: 4/19/13
          Analysis by:  Eric Thronson                    FISCAL:  yes
          Hearing date:  July 2, 2013



          SUBJECT:

          Gold Coast Transit District

          DESCRIPTION:

          This bill dissolves the existing Gold Coast Transit joint powers  
          agency in Ventura County and creates the Gold Coast Transit  
          District, succeeding to and vested with the rights, powers,  
          duties, and obligations of the former joint powers agency.

          ANALYSIS:

          In 1971, the Legislature enacted the Transportation Development  
          Act (TDA), SB 325 (Mills), Chapter 1400, which dedicated a  
          statewide  percent sales tax to local transportation in order  
          to ensure "the efficient and orderly movement of people and  
          goods in the urban areas of the state."  The focus of the law is  
          the provision of transit services in urban areas, although it  
          recognizes that rural areas have a different mix of  
          transportation needs and includes a process that allows some  
          local governments to use these funds for local streets and  
          roads.  Existing law vests regional transportation planning  
          agencies with the responsibility to allocate these funds  
          generally to cities, counties, and transit districts by  
          population.  In 2010, TDA generated $1.1 billion for  
          transportation, about 6 percent of which was used for local  
          street and road purposes in non-urbanized areas. 

          Existing law authorizes two or more public agencies to enter  
          into a joint powers agreement and exercise jointly any power  
          common to the contracting agencies.  Nearly 40 years ago the  
          cities of Oxnard, Ventura, Port Hueneme, and Ojai, along with  
          Ventura County, formed a joint powers agency called Gold Coast  
          Transit to plan, operate, and manage a public bus service in  
          western Ventura County.

           This bill  dissolves the existing Gold Coast Transit joint powers  




          AB 664 (WILLIAMS)                                      Page 2

                                                                       


          agency in Ventura County and creates the Gold Coast Transit  
          District, succeeding to and vested with the rights, powers,  
          duties, and obligations of the former joint powers agency.   
          Specifically, this bill: 

           Includes in the new district the cities of Oxnard, Ventura,  
            Port Hueneme, Ojai, and the unincorporated areas of Ventura  
            County.  

           Authorizes other cities in Ventura County to subsequently join  
            the district with a resolution approved by the city's and the  
            district's governing boards.

           Provides for the transfer of assets from the dissolved joint  
            powers agency to the new transit district.
           Specifies the voting procedures for the taking of various  
            actions by the transit district's governing board and provides  
            for weighted votes in specific cases.

           Specifies the powers and duties of the transit district to  
            operate transit services and authorizes the district to seek  
            voter approval of tax measures and the issuance of revenue  
            bonds.

           Enacts provisions related to the operation of a public transit  
            service similar to those authorized for other transit  
            districts throughout the state.
          
          COMMENTS:

           1.Purpose  .  Currently, Gold Coast Transit joint powers agency  
            members receive TDA funds from the Ventura County  
            Transportation Commission (VCTC), and then share them with the  
            joint powers agency to operate its transit operation.  This  
            has led to the joint powers agency assigning existing service  
            based on the source of funding instead of on what may make the  
            most sense for improving service and mobility region wide.   
            According to the author, one of the major benefits of this  
            bill is that, by dissolving the joint powers agency and  
            forming a transit district, VCTC will allocate TDA funds  
            directly to the district and the district's governing board  
            will be able to look beyond jurisdictional boundaries and  
            allocate services to meet the needs and demands of the area at  
            large. 

           2.What does this bill really do  ?  Primarily, this bill converts  




          AB 664 (WILLIAMS)                                      Page 3

                                                                       


            an existing transit operator from a joint powers agency to a  
            transit district.  This transition should not change the  
            operations of the transit service, or its service area in the  
            near term.  What the transition effects, primarily, is the  
            distribution of TDA funds in the transit area's jurisdiction.   
            The way VCTC distributes these funds is important for a  
            variety of reasons to the different entities in Ventura  
            County.  First, as the author contends, distributing TDA funds  
            directly to the district instead of to the participants of the  
            joint powers agency enables the district board to make the  
            best decisions for the service as a whole instead of worrying  
            about an equitable return of services for funds provided.   
            This should lead to an overall more effective service than  
            might otherwise be obtainable for those jurisdictions  
            participating in the district.  Second, because the district  
            boundaries include all unincorporated areas of Ventura County,  
            it provides a stark delineation between the jurisdictions  
            within and outside of the district's service area.  While this  
            bill does not preclude the district from serving areas outside  
            its service area, the delineation will help the district  
            determine the best ways to serve Ventura County residents.   
            Further, jurisdictions not currently in the district and  
            therefore receiving their own allocation of TDA funds from  
            VCTC may find after time that joining the district will be  
            more efficient and effective than trying to address transit  
            needs in their areas alone.

           3.Second part of a compromise  .  Ventura County faces myriad  
            transportation challenges because it encompasses both very  
            urban and very rural communities as well as a varied  
            geography.  On one hand, ten different agencies provide public  
            transportation in Ventura County and, based on local funding  
            policies and perceived needs, operators offer different hours  
            and levels of service.  This transit discontinuity creates  
            challenges for the public trying to navigate the fragmented  
            system.  On the other hand, some communities in the county  
            prefer to continue to use TDA funds for local streets and  
            roads and are resistant to any increased public transportation  
            services.  This tension between using TDA funding for transit  
            or roads has created an ongoing conflict between communities  
            within Ventura County.

            While VCTC has attempted to improve connections and mobility  
            in the county, progress toward truly integrated transit  
            service and consensus around the use of TDA funding has until  
            recently been minimal.  In 2012, VCTC submitted to the  




          AB 664 (WILLIAMS)                                      Page 4

                                                                       


            Legislature a statutorily-required report that included an  
            analysis of organizational options for expending TDA and  
            providing public transit in the county.  In summary, the  
            report made two recommendations.  First, the report  
            recommended that the east county cities, including Simi  
            Valley, Moorpark, and Thousand Oaks, continue to use TDA funds  
            for either transit or streets and roads.  This recommendation  
            is being pursued by SB 203 (Pavley), currently pending in the  
            Assembly Transportation Committee.  The second recommendation  
            from the VCTC report, embodied by this bill, was that transit  
            services currently being provided by a joint powers agency in  
            western Ventura County be provided by a special transit  
            district.  All TDA funds generated in the transit district's  
            area of jurisdiction would be committed to public transit.   
            This bill, along with SB 203, represents a compromise between  
            the interested parties in Ventura County that will hopefully  
            result in a more effective and efficient transportation  
            system.
          
          Assembly Votes:
               Floor:                            70-0
               Appr:     17-0
               L. Gov.:                            9-0
               Trans:                            16-0

          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             June 26,  
          2013.)

               SUPPORT:  Gold Coast Transit (sponsor)
                         Central Coast Alliance United for a Sustainable  
          Economy
                         Santa Barbara Metropolitan Transit District
                         SEIU 721
                         Ventura Chamber of Commerce
                         Ventura County Board of Supervisors
                         Ventura County Transportation Commission 

               OPPOSED:  None received.