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.