BILL NUMBER: SB 664 CHAPTERED 10/10/99 CHAPTER 729 FILED WITH SECRETARY OF STATE OCTOBER 10, 1999 APPROVED BY GOVERNOR OCTOBER 7, 1999 PASSED THE SENATE SEPTEMBER 10, 1999 PASSED THE ASSEMBLY SEPTEMBER 10, 1999 AMENDED IN ASSEMBLY SEPTEMBER 10, 1999 AMENDED IN ASSEMBLY SEPTEMBER 7, 1999 AMENDED IN ASSEMBLY SEPTEMBER 3, 1999 AMENDED IN ASSEMBLY SEPTEMBER 1, 1999 AMENDED IN SENATE AUGUST 19, 1999 AMENDED IN SENATE JULY 1, 1999 AMENDED IN SENATE MAY 28, 1999 AMENDED IN SENATE APRIL 27, 1999 INTRODUCED BY Senator Alpert FEBRUARY 24, 1999 An act to amend Sections 120102.5 and 120265 of, and to add Section 99400.7 to, the Public Utilities Code, and to amend Sections 30796.7 and 30796.10 of the Streets and Highways Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST SB 664, Alpert. San Diego ferry service: San Diego-Coronado Bridge. (1) The Mills-Alquist-Deddeh Act specifies allowable claims for local transportation funds that may be filed with the transportation planning agency. This bill would allow cities within the County of San Diego to file claims with the transportation planning agency to provide commuter ferry service on San Diego Bay for the purpose of serving peak period commute trips for pedestrians and bicycles, as specified. Because this would increase the level of services required of transportation planning agencies, this bill would impose a state-mandated local program. (2) Existing law creates the San Diego Metropolitan Transit Development Board in San Diego County. Provision is made, on an annual basis and at the time of the annual apportionment, for an assessment of each member jurisdiction based on a percentage of its apportionment equal to the percentage of its 1983-84 fiscal year apportionment claimed for support of regional transit services or 5% of its annual apportionment, whichever is greater. The bill would delete a requirement in existing law that the specified assessment formula remain in effect for a minimum of 3 fiscal years, would delete authority for the formula to be amended after the expiration of those 3 years, would delete authority for a specified regional transit advisory service to review the formula and recommend appropriate changes to the board and the pertinent jurisdictions, and, instead, would authorize the board to adopt and amend, on an annual basis, an assessment formula for funding regional services. The bill would exempt this board action from the application of the weighted vote procedures in existing law. The bill would require the board to consider the transit needs and revenue for the next 5-year period including certain specific factors. The bill would prohibit the formula from providing for an assessment for any city that is greater than 50% of that city's annual apportionment for support of regional services. The bill would require the regional transit service advisory committee to review, on an annual basis, the assessment formula and submit to the board any recommended changes to the formula that are based on the specified factors. The bill would delete a requirement in existing law for the board to establish certain reserves at the request of specified cities or the county. This bill would require the board, for the 1999-2000 fiscal year only, to proportionately assess each jurisdiction within the board's area, as described, for the costs of commuter ferry service with the total aggregate amount assessed not to exceed $120,000. To the extent that these provisions would increase the level of service required of the board or the regional transit service advisory committee, the bill would impose a state-mandated local program. (3) Existing law requires the revenue from any tolls imposed on the San Diego-Coronado Bridge to be used first for expenses related to the collection of tolls and operation of the bridge. This bill would specify that expenses related to the collection of tolls include, but are not limited to, the installation and operation of an automated toll collection system, if that system is installed by the San Diego Association of Governments. The bill would make conforming changes. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 99400.7 is added to the Public Utilities Code, to read: 99400.7. Notwithstanding Section 99232, cities within the County of San Diego may file a claim under this article with the transportation planning agency to provide commuter ferry service on San Diego Bay for the purpose of serving peak period commute trips for pedestrians and bicycles. The commuter ferry service may be located anywhere on San Diego Bay, but shall be consistent with the regional transportation plan, shall serve employment centers and high volume activity centers, and may be provided by contract with operators, private entities operating under a franchise or license, or nonprofit corporations organized pursuant to Division 2 (commencing with Section 9000) of Title 1 of the Corporations Code. SEC. 2. Section 120102.5 of the Public Utilities Code is amended to read: 120102.5. (a) A majority of the members of the board constitutes a quorum for the transaction of business. All official acts of the board require the affirmative vote of the majority of the members of the board. However, after a vote of the members is taken, a weighted vote may be called by any two members, at least one of whom is not a City of San Diego representative. (b) In the case of a weighted vote, each of the four representatives of the City of San Diego shall exercise 121/2 weighted votes, for a total of 50 votes. The County of San Diego and each city, other than the City of San Diego, shall, in total, exercise 49 weighted votes to be apportioned annually by population. The chairperson, if not chosen from the membership of the board, shall exercise one weighted vote. (c) Approval under the weighted vote procedure requires the vote of the representatives of not less than three jurisdictions representing not less than 51 percent of the total weighted vote to supersede the original action of the board. (d) The weighted vote procedure shall not be used on any matter of purely intracity local service, unless it is the desire of the affected city or jurisdiction. (e) The weighted vote procedure shall not be used for purposes of subdivision (c) of Section 120265. (f) For purposes of subdivision (c), the population of the County of San Diego is the population in the unincorporated area of the county within the area of jurisdiction of the transit development board. (g) The board shall adopt a policy and procedure to implement this section. SEC. 2.5. Section 120265 of the Public Utilities Code is amended to read: 120265. (a) The board shall provide a system of regional transit operating services and support activities including, but not limited to, facilities, fare media, information, maintenance, marketing, security, and signing for its area of jurisdiction, to be funded from the regional transit fund which the board shall create. The board may provide the regional services directly, by contract with the San Diego Transit Corporation, or by contract with any other provider of services as it deems appropriate, and upon terms and conditions that the board finds in its best interests. The board shall complete an economic feasibility study of competitive bidding for regional transit service within 180 days from the date of acquisition of the San Diego Transit Corporation and shall update the study at any time the board deems appropriate to consider changed circumstances. The board shall adopt a policy for contract services to permit prices and other factors to be compared and evaluated prior to negotiating any contract for regional service. (b) The board shall determine the routes, fares, frequency of service, and hours of operation of regional services. The board shall create a regional transit service advisory committee consisting of a representative from each of the jurisdictions that contributes to the regional transit funds from its apportionment as determined pursuant to Section 99231. Periodic revisions to the regional route system may be made by the board upon review by the regional transit service advisory committee which shall meet on an as-needed basis, but not less than once a year to review the annual budget and assessment for regional transit services. (c) (1) The board may annually adopt and amend an assessment formula for funding regional services. The board shall consider the transit needs and revenues for the next five-year period including the following: (A) Provision of specialized services, as required under the federal Americans with Disabilities Act of 1990 (Public Law 101-336). (B) Provision of resources adequate for maintaining, rehabilitating, and replacing capital facilities and equipment, including, but not limited to, transit centers and rolling stock. (C) Identification of matching funds sufficient for avoiding loss of available state and federal funds. (D) Development of an appropriate balance between local and regional transit services. (E) Development of the most efficient and effective use of all available local, regional, state, and federal funds, including, but not limited to, funds provided under this division. (F) Recognition of the needs for the operation of local transit services of the cities and county and any anticipated changes in previous revenue sources for those services, including bridge tolls. (G) Recognition of the size of the population of each member jurisdiction. (2) The formula adopted or amended under paragraph (1) may not provide for an assessment for any city that is greater than 50 percent of that city's annual apportionment for support of regional services. (3) The regional transit service advisory committee created under subdivision (b) shall review, on an annual basis, the assessment formula adopted or amended under paragraph (1) and shall submit to the board any recommended changes to the formula that are based on the factors listed in paragraph (1). (d) The board may enter into agreements with any local jurisdiction to provide local transit services by the means and upon terms and conditions as may be mutually agreed upon. (e) The acquisition of the San Diego Transit Corporation by the board shall not create or impose any financial liability upon the County of San Diego or the cities within the board's area of jurisdiction for any obligations and liabilities of the corporation by virtue of their membership on the board. SEC. 3. Section 30796.7 of the Streets and Highways Code is amended to read: 30796.7. (a) Notwithstanding any other provision of law, the San Diego Association of Governments, on behalf of the state, may impose a toll on vehicles crossing the San Diego-Coronado Bridge. The toll shall be established by the association after conducting at least one public hearing. (b) The authority of the commission relative to tolls on the bridge is hereby transferred to the San Diego Association of Governments. All tolls on the bridge shall be at the rates established by the San Diego Association of Governments, except that at no time shall the rate of toll for class 1 vehicles exceed one dollar and fifty cents ($1.50) per vehicle. (c) (1) The revenues from any tolls imposed on the bridge shall be used first for expenses related to the collection of tolls, including, but not limited to, the installation and operation of an automated toll collection system, if that system is installed by the association, and operation of the bridge, including, but not limited to, reimbursement for any operating and retrofitting costs and, second, for improvements to the bridge and its approaches. Tolls shall be established at an amount which will generate revenue sufficient to meet the requirements set forth in this paragraph, as determined by the department. Maintenance of the bridge shall be funded by the state under Section 188.4. (2) The revenues from any tolls imposed on the bridge may also be used for costs incurred by the San Diego Association of Governments in administering this section and for any of the following: (A) Transportation services that either increase the capacity of the bridge and its approaches or reduce the demand for travel in the transportation corridor that includes the bridge. (B) Alternative forms of transportation, within the transportation corridor that includes the bridge, that reduce congestion and air pollution, including, but not limited to, ferry service and public transit. (C) Capital improvements and related expenditures within the transportation corridor for construction and maintenance of bikeways. (d) For the purposes of this section, "transportation corridor" means the San Diego-Coronado Bridge and its approaches which extend from Route 5 in the City of San Diego to the North Island Naval Air Station via Route 282, and to the Naval Amphibious Base via Route 75 in the City of Coronado. (e) All money deposited in the San Diego-Coronado Toll Bridge Revenue Fund prior to March 26, 1992, and not expended, encumbered, or programmed before January 1, 1994, is appropriated to the Controller for allocation to the San Diego Association of Governments for the purposes of paragraph (2) of subdivision (c). (f) The San Diego Association of Governments shall include in the regional transportation improvement program, and every update thereof, an expenditure plan specifying the projects and programs that are to be funded with toll revenues. (g) If the San Diego Association of Governments, on behalf of the state, imposes tolls pursuant to subdivision (a), it shall reimburse the department for costs incurred by the department in operating the bridge, collecting tolls, and performing other related services. The association and the department shall enter into an agreement which provides for the full reimbursement of the department for all operating costs. (h) The San Diego Association of Governments shall prepare an annual audit of expenditures that are funded with toll revenues. The audit shall be funded solely with toll revenues and shall not include expenditures made by the department. The association shall review the annual financial report on state-owned toll bridges that is prepared by the department for revenues collected under this section. SEC. 4. Section 30796.10 of the Streets and Highways Code is amended to read: 30796.10. (a) The San Diego Association of Governments may issue bonds payable from the revenues derived from the tolls imposed on the bridge. The bonds may be issued by the San Diego Association of Governments at any time, and from time to time payable from the revenues from the tolls. The bonds shall be referred to as "toll bridge revenue bonds." The association shall be an instrumentality of the state for the purposes of those issuances. (b) The revenues from the tolls on the bridge shall be subject to a statutory lien in favor of the bondholders to secure all amounts due on the bonds and in favor of any provider of credit enhancement for the bonds to secure all amounts due to the provider with respect to those bonds. The lien shall immediately attach to the toll revenues and be effective, binding, and enforceable against the San Diego Association of Governments, its successors, creditors, and all others asserting the rights therein, irrespective of whether those parties have notice of the lien and without the need for any physical delivery, recordation, filing, or further act. The toll revenues shall remain subject to the lien until all bonds are paid in full or provisions are made therefor. The bridge shall not become a free public bridge until that time. (c) The liens on toll revenues created by this section shall be subject to expenditures for the collection of tolls, if those expenditures are not otherwise provided for by statute, including, but not limited to, expenditures relating to the installation and operation of an automated toll collection system, if that system is installed by the association, but shall have priority over the use of any of the toll revenues for improvements undertaken pursuant to the authorization contained in subdivision (c) of Section 30796.7. (d) Toll bridge revenue bonds shall be issued pursuant to a resolution adopted at any time, and from time to time, by the San Diego Association of Governments by a majority vote of the governing board of the association. The San Diego Association of Governments may from time to time, issue bonds in accordance with the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of Title 5 of the Government Code), for the purpose of constructing, improving, or equipping the bridge, or for any of the purposes authorized by Section 30796.7 for the expenditure of toll revenues. Operation of the bridge shall constitute an "enterprise" within the meaning of Section 54309 of the Government Code, and the San Diego Association of Governments shall constitute a "local agency" within the meaning of Section 54307 of the Government Code. Article 3 (commencing with Section 54380) of Chapter 6 of Part 1 of Division 2 of Title 5 of the Government Code shall not apply to the issuance and sale of bonds pursuant to this section. Instead, the San Diego Association of Governments shall authorize the issuance of bonds by resolution, which resolution shall specify all of the following: (1) The purposes for which the bonds are to be issued. (2) The maximum principal amount of the bonds. (3) The maximum term for the bonds. (e) The maximum rate of interest to be payable upon the bond which interest rates shall not exceed the maximum rate specified in Section 53531 of the Government Code. The rate may be either fixed or variable and shall be payable at the times and in the manner specified in the resolution. (f) Interest on any bonds issued pursuant to this section shall at all times be free from state personal income tax and corporate income tax. (g) Any bonds issued pursuant to this section are a legal investment for all trust funds; for the funds of insurance companies, commercial and savings banks, and trust companies; and for state school funds. Whenever any money or funds may, by any law now or hereafter enacted, be invested in bonds of cities, counties, school districts, or other districts within the state, those funds may be invested in the bonds issued pursuant to this section, and whenever bonds of cities, counties, school districts, or other districts within this state may, by any law now or hereafter enacted, be used as security for the performance of any act or the deposit of any public money, the bonds issued pursuant to this section may be so used. The provisions of this section are in addition to all other laws relating to legal investments and shall be controlling as the latest expression of the Legislature with respect thereto. (h) The State of California pledges and agrees with the holders of the bonds issued pursuant to this chapter, and with those parties who may enter into contracts with the San Diego Association of Governments pursuant to the provisions of this chapter, that the state will not limit, alter, or restrict the rights hereby vested in the San Diego Association of Governments to finance the toll bridge improvements and other projects and programs authorized by this chapter. The State of California pledges and agrees not to impair the terms of any agreements made with the holders of bonds, and with the parties who may enter into contracts with the San Diego Association of Governments pursuant to this chapter, and pledges and agrees not to impair the rights or remedies of the holders of any revenue bonds or any parties until the bonds, together with interest, are fully paid and discharged and any contracts are fully performed on the part of the San Diego Association of Governments. (i) The San Diego Association of Governments may include the pledges made under this section in its revenue bonds. SEC. 5. For the 1999-2000 fiscal year only, each jurisdiction within the San Diego Metropolitan Transit Development Board area, as described in Section 120054 of the Public Utilities Code, shall be assessed by the board proportionately for the cost of commuter ferry service with the total aggregate amount assessed not to exceed one hundred twenty thousand dollars ($120,000). The board shall determine the specific amount of the assessment for each jurisdiction and claim that amount. SEC. 6. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.