BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: Sb 203
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  pavley
                                                         VERSION: 2/7/13
          Analysis by:  Eric Thronson                    FISCAL:  no
          Hearing date:  April 23, 2013



          SUBJECT:

          Local transportation funds in Ventura County

          DESCRIPTION:

          This bill eliminates a special provision of the Transportation  
          Development Act for Ventura County and instead aligns Ventura  
          with the way existing law treats all other California counties.

          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."  Although the focus of  
          the law is the provision of transit services in urban areas, it  
          recognizes that rural areas have a different mix of  
          transportation needs.  To this end, TDA required revenues  
          collected in counties with a population greater than 500,000 as  
          of the 1970 census to be used exclusively for public transit  
          purposes.  Alternatively, a community in any county with a  
          population under 500,000 as of 1970 could use the revenues for  
          local streets and roads if able to demonstrate through a  
          prescribed process that all transit needs in that community are  
          met. 

          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. 

          SB 716 (Wolk), Chapter 609, Statutes of 2009, applied  
          alternative restrictions on TDA funds in all counties not  
          considered urban in the original TDA statute but with  
          populations over 500,000 as of the 2000 decennial census and  
          each subsequent decennial census.  Urbanized areas within these  




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          counties must now use TDA funds exclusively for public transit,  
          while non-urbanized areas may use TDA funds for either public  
          transit or local roads.  In addition, a city in an urbanized  
          area but not within a transit district that has a population of  
          less than 100,000 may use its funds for either transit or roads.  
           SB 716 requires affected counties to comply by July 1, 2014.  


          In the case of Ventura County, SB 716 granted a temporary  
          exemption to the new restrictions and required that Ventura  
          County Transportation Commission (VCTC) prepare a report  
          analyzing options for organizing Ventura's public transit  
          services and then recommend a legislative proposal to implement  
          the plan.  SB 716 required VCTC to submit a report to the Senate  
          Transportation and Housing Committee and the Assembly  
          Transportation Committee by December 31, 2011.  If the  
          legislature did not enact the recommended proposal during the  
          2011-2012 session, then SB 716 dedicated all TDA funds in  
          Ventura County exclusively to public mass transit purposes.   
          While VCTC submitted the required report, the Legislature did  
          not enact a solution within the 2011-2012 session.

           This bill  eliminates the requirement that all TDA funds in  
          Ventura County be used exclusively for public mass transit  
          purposes, in effect aligning Ventura with the way existing law  
          treats all other California counties.

          COMMENTS:

           1.Purpose  .  According to the author, this bill is necessary to  
            give Ventura County the same local funding flexibility  
            afforded other counties in the state.  Existing law includes a  
            temporary exemption to recent changes to the TDA for Ventura  
            County in order to give the county additional time to address  
            current transportation challenges and develop its Countywide  
            Transit Plan.  VCTC has since adopted the required transit  
            plan; this bill aligns with that plan's recommendations and  
            grants Ventura County parity with the rest of the state.

           2.Background  .  When the TDA was enacted in 1971, ten urban  
            counties in California exceeded the 500,000 population  
            threshold:  Alameda, Contra Costa, Los Angeles, Orange,  
            Sacramento, San Bernardino, San Diego, San Francisco, San  
            Mateo, and Santa Clara.  Existing law requires these counties  
            to use TDA funds exclusively for public transportation.   
            California has become substantially more urbanized since 1970,  




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            and by the 2000 census, five additional counties exceeded  
            500,000 in population:  Fresno, Kern, San Joaquin, Riverside,  
            and Ventura.  By 2020, another six or seven counties will  
            exceed 500,000 people according to state estimates.  As stated  
            above, SB 716 updated existing law to apply TDA transit  
            provisions to counties as they become more urban.
            
            Of all the counties affected by SB 716, only Ventura County  
            strongly opposed its provisions.  Ventura faces myriad  
            transportation challenges with 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 discontinuity creates challenges for the public trying to  
            navigate the fragmented system.  In addition, some communities  
            in the county prefer to continue to use TDA funds for local  
            streets and roads as was allowed before SB 716 and are  
            resistant to any increased public transportation.  The tension  
            between using TDA funding for transit or roads has created  
            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 been  
            minimal.  In response to Ventura's opposition, SB 716 allowed  
            VCTC to prepare an analysis of organizational options for  
            expending TDA and providing public transit in the county that  
            was submitted to the Legislature in 2012.  In summary, the  
            report recommends:

                 That transit services currently being provided by a  
               joint powers agency in western Ventura County, including  
               the cities of Oxnard, Port Hueneme, and Ventura, be  
               recreated as a special transit district.  All TDA funds  
               generated in the district's area of jurisdiction would be  
               committed to public transit.

                 That the east county cities, including Simi Valley,  
               Moorpark, and Thousand Oaks, continue to use TDA funds for  
               either transit or streets and roads.  
           
            In March 2013, VCTC further refined its recommendations to,  
            among other things, seek parity with other counties pursuant  
            to SB 716.  While retaining the SB 716 requirement that cities  
            with populations over 100,000 be required to use all TDA funds  




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            for transit purposes, this would allow cities in the county  
            under 100,000 in population to use TDA funds for local streets  
            and roads as long as transit needs were addressed.  

            This bill accomplishes VCTC's recommendation of treating  
            Ventura County the same way all other counties are treated  
            under existing law.  Without this bill, existing law treats  
            Ventura County the way it does the ten urban counties in the  
            original TDA legislation: namely, it requires that all TDA  
            funds be available exclusively for public transportation  
            purposes.

           1.Require reporting  .  The refined VCTC recommendations included  
            a proposal that VCTC provide a report to the Legislature  
            annually for five years in order to address legislative  
            concerns and demonstrate the county's commitment to the TDA  
            purpose.  The report would include, but not be limited to, all  
            route changes/service changes/ridership numbers for all  
            routes, and annual budgets of all transit operators in the  
            county.  The committee may wish to amend the bill to reflect  
            the VCTC recommendation and require this report.
          
          RELATED LEGISLATION:
          
          AB 664 (Williams) adopts another VCTC report recommendation by  
          dissolving the existing joint powers agency known as Gold Coast  
          Transit and creating a new Gold Coast Transit District.  The  
          district would initially include the Cities of Oxnard, Ventura,  
          Port Hueneme, and Ojai, and would authorize other cities in  
          Ventura County to subsequently join should they so choose.   
          Pending in the Assembly Local Government Committee.
          
          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             April 17,  
          2013.)

               SUPPORT:  Ventura County Transportation Commission  
          (sponsor)

               OPPOSED:  None received.