BILL ANALYSIS Ó AB 1260 Page 1 ASSEMBLY THIRD READING AB 1260 (Thurmond) As Amended May 22, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+---------------------+---------------------| |Local |6-2 |Gonzalez, Alejo, |Maienschein, Waldron | |Government | |Chiu, Cooley, | | | | |Gordon, Holden | | | | | | | |----------------+------+---------------------+---------------------| |Higher |8-3 |Bloom, Irwin, |Baker, Chávez, | |Education | |Levine, Linder, Low, |Harper | | | |Santiago, Weber, | | | | |Williams | | | | | | | |----------------+------+---------------------+---------------------| |Appropriations |12-5 |Gomez, Bonta, |Bigelow, Chang, | | | |Calderon, Daly, |Gallagher, Jones, | | | |Eggman, Eduardo |Wagner | | | |Garcia, Gordon, | | | | |Holden, Quirk, | | | | |Rendon, Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------- AB 1260 Page 2 SUMMARY: Authorizes the University of California (UC) to enter into a joint powers agreement (JPA) with the City of Richmond (City), or an enhanced infrastructure financing district (EIFD) created by the City for purposes of financing infrastructure for the Berkeley Global Campus, if certain circumstances are met. Specifically, this bill: 1)Allows UC to enter into a JPA with the City or an EIFD created by the City, or both, for the purpose of financing infrastructure and other improvements within the area of the South Shoreline Specific Plan and the Berkeley Global Campus at Richmond Bay if the UC and the City have entered into an agreement that details all commitments made by UC relating to the Berkeley Global Campus at Richmond Bay, and the agreement includes, among any other provisions, the following: a) The creation of an Anti-Displacement Fund allocated to the construction of affordable housing; b) Vocational training programs made available to residents of the City; c) A policy requiring that all wages paid for employment on the Richmond Global Campus be at least 30% above the minimum wage; d) An agreement with the Contra Costa Building and Construction Trades Council to provide for the compensation and working conditions of employees engaged in construction of the Richmond Global Campus; e) An agreement that all Richmond Global Campus jobs that are comparable to jobs performed at the UC Berkeley (UCB) campus will be employed by the UC under the same terms and conditions that govern employment at UCB; AB 1260 Page 3 f) Creation of a Youth Opportunity and Education Fund; g) A policy providing preferential procurement opportunities for small businesses located in the City; and, h) Provisions for local hire requirements. 2)Provides, if the City or an EIFD created by the City, or both, enter into a JPA with UC, the date on which an EIFD created by the City and any other consenting taxing agencies shall cease to exist, and at which time all tax allocation to the EIFD will end, shall not be more than 55 years from the date on which the issuance of bonds is approved, as specified, or the issuance of a loan is approved by the governing board of a local agency, as specified. 3)Provides that the Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of California Constitution Article IV, Section 16 because of the unique circumstances of developing the Berkeley Global Campus at Richmond Bay, located within the City. EXISTING LAW allows, pursuant to the Joint Exercise of Powers Act, two or more public agencies by agreement to jointly exercise any power common to the contracting parties, as specified, if authorized by their legislative or other governing bodies. FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill contains no state costs. Costs to local agencies to form JPAs or EIFDs are not reimbursable. COMMENTS: AB 1260 Page 4 1)Bill Summary. This bill authorizes the UC to enter into a JPA with the City, or an EIFD created by the City, or both, for purposes of financing infrastructure for the Berkeley Global Campus, if conditions are met. This bill is author-sponsored. 2)Author's Statement. According to the author, the intent of this measure is to facilitate a partnership between the City and UCB with regards to the creation of a UCB Global Campus in Richmond Bay. The author states, "The current version of the bill speaks to the unique situation of the Global Campus in terms of the needs of the City and the ability of the UC to partner with the City on infrastructure and financing. The bill is working toward providing an efficient public financing mechanism to fund the shared, critical infrastructure required for development of the University of California at Berkeley Global Campus and the complimentary City of Richmond South Shoreline Specific Plan Area." 3)Joint Exercise of Powers Act. JPAs have existed in California for nearly 100 years, and were originally created to allow multiple local governments in a region to pool resources to meet common needs. The Joint Exercise of Powers Act authorizes state and local agencies to create and use a JPA, which is a legal document that allows the contracting parties to exercise powers that are common to all of the contracting parties. A JPA can be administered by one of the contracting agencies, or it can be carried out by a new, separate public entity. JPAs are an attractive tool for local governments because they facilitate more efficient service provision through collaboration, and they allow local entities to issue bonds without voter ratification. Current law authorizes JPAs to jointly exercise any power common to the contracting parties, if authorized by their legislative AB 1260 Page 5 or governing body. 4)EIFDs. Existing law authorizes a city or county to establish an EIFD, adopt an infrastructure financing plan, and issue bonds for which only the EIFD is liable, upon approval of 55% of the voters, and to finance public capital facilities. The EIFD must create an infrastructure financing plan which includes the date the EIFD will end. 5)Arguments in Support. Unknown. 6)Arguments in Opposition. Unknown. Analysis Prepared by: Debbie Michel / L. GOV. / (916) 319-3958 FN: 0000529