BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 644
                                                                  Page  1

          Date of Hearing:  April 29, 2009

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                             Anna Marie Caballero, Chair
                AB 644 (Caballero) - As Introduced:  February 25, 2009
          
          SUBJECT  :  Monterey-Salinas Transit District Act.

           SUMMARY :  Creates the Monterey-Salinas Transit District Act.   
          Specifically,  this bill  :  

          1)Creates the Monterey-Salinas Transit District (District). 

          2)Specifies that the jurisdiction of the district extends  
            throughout the Monterey County (County)

          3)States that on and after January 1, 2010, the Monterey-Salinas  
            Transit Joint Powers Agency (Agency) is dissolved and the  
            District succeeds to, and is vested with, all of the rights,  
            powers, duties, and obligations of the agency. 

          4)Provides that the District is the successor to the Agency's  
            interests in any property, its rights and obligations under  
            any contract, any outstanding indebtedness of the Agency, and  
            its rights under any grants, without the necessity of any  
            further action.

          5)Requires the District to assume the duties of public transit  
            provider performed by the agency. 

          6)States that on and after January 1, 2010, the Cities of  
            Carmel-by-the-Sea, Del Rey Oaks, Marina, Monterey, Pacific  
            Grove, Salinas, and Seaside and the County of Monterey are  
            included within the District.

          7)Provides that the District will act as the consolidated  
            transportation services agency for the County and the regional  
            transportation planning agency.

          8)States that upon dissolution of the Agency, employees of the  
            Agency shall be deemed to be employees of the district without  
            any break in service or any loss or reduction of compensation  
            or benefits, except as may be imposed by express action of the  
            Board of Directors of the Monterey-Salinas Transit District  
            (Board).








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          9)States that District shall be governed by an eight-member  
            Board.

          10)Requires that the Board be composed of one representative  
            from each member jurisdiction which includes the Cities of  
            Carmel-by-the-Sea, Del Rey Oaks, Marina, Monterey, Pacific  
            Grove, Salinas, and Seaside, and the County of Monterey.

          11)Provides that each member of the Board shall have one vote. 

          12)Requires each member jurisdiction to appoint one regular  
            member and one alternate member to the Board.

          13)Requires the City of Gonzales to appoint a person to serve as  
            a nonvoting, ex officio member. 

          14)States that each member shall serve solely at the pleasure of  
            the appointing member jurisdiction. 

          15)Requires Board members to be either elected officials or  
            officers or employees of the appointing member jurisdiction.

          16)Requires the Board to do all of the following:

             a)   Adopt an annual budget;

             b)   Adopt an administrative code, by ordinance, which  
               prescribes the powers and duties of the District officers,  
               the method of appointment of the district employees, and  
               methods, procedures, and systems of operation and  
               management of the district;

             c)   Cause an audit of the financial transactions and records  
               of the District to be made at least annually by a certified  
               public accountant; and, 

             d)   Do any and all things necessary to carry out the  
               purposes of this act.

          17)Requires the Board to adopt priorities reflecting the  
            District's goals.

          18)Requires the Board to select a president and a vice president  
            at each of its organizational meetings.








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          19)Specifies that the meetings of the Board are subject to the  
            Ralph M. Brown Act.

          20)States that a majority of the total membership of the Board  
            is a quorum.

          21)Requires acts of the Board to be expressed by motion,  
            resolution, or ordinance.

          22)Authorizes the District to hire an independent staff of its  
            own or contract with any department or agency of the United  
            States or with any public agency.

          23)Authorizes the District to contract with private entities in  
            conformance with applicable procurement procedures for the  
            procurement of engineering, project management, and contract  
            management services.

          24)Requires the Board to fix the compensation of the District's  
            officers and employees.

          25)States that the District may sue and be sued.

          26)Requires the District to notice the time and place of a  
            public hearing on the adoption of the annual budget not less  
            than 15 days prior to the day of the hearing.

          27)Authorizes the District to enter into contracts. 
          28)Requires the District to adopt procurement procedures that  
            comply with Federal Transit Administration Circular relative  
            to third-party contracting.

          29)Authorizes the District to submit to voters of the District  
            ballot measures for the imposition of property, sales,  
            general, or special taxes.

          30)Authorizes the District, if approved, to impose and  
            administer fees and other funding sources secured for  
            transportation system operation, maintenance, and improvement.

          31)Authorizes the Board to set fares for public transit service.  


          32)Specifies that the District may issue bonds to pay for  








                                                                  AB 644
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            capital facilities.

          33)States that the District may advocate and act on behalf of  
            all District member jurisdictions with their concurrence to  
            further Monterey County transportation system interests,  
            funding, projects, and priorities.

          34)Authorizes the District to promulgate a plan for funding  
            transportation projects within its jurisdiction.

           EXISTING LAW  establishes transit districts.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :   

          1)Monterey-Salinas Transit (MST) is a Joint Powers Agency (JPA)  
            that provides public transit services to citizens of and  
            visitors to communities that comprise its member  
            jurisdictions.  In addition, MST operates transit services  
            under contract to other communities in Monterey County as well  
            as connecting services to other transit providers at  
            Watsonville, Gilroy, Morgan Hill and San Jose.

          2)According to the author, MST is a critical part of the  
            Monterey region's transportation network allowing tens of  
            thousands of passengers to work, school and medical  
            appointments each day.  Since 2001 MST has seen its ridership  
            grow 20% achieving a record number of five million annual  
            boardings. The MST "RIDES" program has seen its ridership grow  
            60% in just the past year as cuts in the MediCal system has  
            driven large numbers of MediCal clients to the MST "RIDES"  
            system for transportation to dialysis treatments and other  
            essential medical services.  Furthermore, the workers that  
            support Monterey's tourism industry, along with the elderly,  
            the disabled, and students all depend on a fully funded,  
            functional public transit system.

          3)Given the billions of dollars in cuts to state transit  
            assistance in recent years, plus the complete elimination of  
            the state transit assistance program in future years, MST must  
            seek alternative ways of funding its transit services locally.  


            AB 644 transforms the MST JPA into a transit district which  








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            will give MST the flexibility that it currently lacks to ask  
            the voters of Monterey County to approve a continuous local  
            funding source for public transit services.  Moreover, AB 644  
            will also allow the District to have bonding capabilities. As  
            a JPA, MST has secured financing in the private markets to  
            fund its bus replacement program. While MST has received  
            competitive rates from the private markets, it is possible  
            that interest rates would be even lower through bond  
            financing. 

           4)Legislative history:   AB 2420 (Hannigan), Chapter 457, Statues  
            of 1996, created the Yolo County Transportation District Act.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Cities of:  Carmel by the Sea, Del Rey Oaks, Gonzales,  
          Greenfield, King City, Marina, 
               Monterey, Pacific Grove, Salinas, Seaside, and Soledad
          County of Monterey
          Monterey-Salinas Transit 

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  
          319-3958