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HomeMy WebLinkAboutMINUTES - 05232006 - SD.4 ..... TO: Board of Supervisors .... Con ra FROM: Transportation, Water and Infrastructure Committee {x' Costa (Supervisor Federal Glover, Chair) gT'1-COiI`!t DATE: May 8, 2006 Count SUBJECT: Report on transportation infrastructure bond measure SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS RECEIVE report on the statewide transportation infrastructure bond measure, as recommended by the Transportation, Water and Infrastructure Committee. FISCAL IMPACT NONE to the General Fund. If the bond measure is approved by voters, Contra Costa County likely will receive $20 million to $25 million in local road improvement funds for the unincorporated areas. BACKGROUND/REASONS FOR RECOMMENDATIONS Recent legislative action created a set of four infrastructure bond measures for the November 2006 ballot. They will be placed on the ballot as Proposition 1 B for Transportation, Air Quality and Port Security, $19.75 billion; Proposition 1C for Housing and Emergency Shelter, $2.85 billion; Proposition 1 D for K-12/University Facilities, $10.4 billion; and Proposition 1 E for Flood Prevention, $4.09 billion. This report provides information about Proposition 1 B for Transportation, Air Quality and Port Security, as reviewed by the Transportation, Water and Infrastructure Committee on May 8. The transportation bond measure is set forth in SB 1266, which is included in this report as Exhibit A. An additional ballot measure will focus on resolving issues with state sales tax revenue from gasoline sales. The passage of Proposition 42 in 2002 required these revenues to be devoted to transportation projects, but most of the funds have been held in the General Fund instead to help deal with the state's financial crisis. The proposed resolution to this issue is provided in Exhibit B, in the form of in SCA 7. On the November 2006 ballot, this proposed resolution will be listed as Proposition 1A. CONTINUED ON ATTACH NT: X YES RECOMMENDATION//61F COU TY ADMINISTRATOR X RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE (S): Superv' or Mary Nejedly Piepho S pervisor Federal D. lover ACTION OF BOA ZAPPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TAKEN A 'ES: NOES: AND ENTERED ON THE MINUTES OF THE ABSENT: ABSTAIN: BOARD OF SUPERVISORS ON THE DATE SHOWN. l Contact: John Greitzer (925/335-1201) � ��, cc: Community Development Department (CDD) ATTESTED ,T J. Bueren, PWD JOHN GULLEN, CLERK OF S. Goetz, CDD THE BOARD OF SUPERVISORS S. Kowalewski, PWD AND COUNTY ADMINISTRATOR DEPUTY G:\Transportation\TWIC\2006\Board Orders\Mav 8 2006 transportation bond report.docBY PROPOSITION 1B TRANSPORTATION BOND May 8, 2006 Page 2 BACKGROUND/REASONS FOR RECOMMENDATIONS (CONTINUED) Proposition 1 B: Transportation, Air Quality and Port Security The Transportation, Air Quality and Port Security measure contains the following key provisions of interest to Contra Costa County: • $2 billion distributed to cities and counties ($1 billion to counties and $1 billion to cities); • $4.5 billion for major transportation capacity projects on state highways or major roads feeding the state highway system, known as the "Corridor Mobility" program; $4 billion for public-transit capital needs, including $3.6 billion in flexible funds available to all transit operators and $400 million specifically for intercity rail services (such as the Capital Corridor and San Joaquin lines, which have several stops in Contra Costa County); • $2 billion to supplement the existing cash-strapped State Transportation Improvement Program (STIP), which allocates funds to transportation projects every other year; • $3 billion for freight system improvements including highway and rail systems, of which $1 billion is reserved for freight-related air-quality improvements; • $1 billion in safety, security and disaster preparedness funds; • $250 million for highway-railroad grade separation projects; and • $300 million for transit-oriented development projects. Aside from the $2 billion that will go directly into the STIP, it isn't yet known exactly how the funding programs will be operated, or how specific projects or programs will be selected for funding. The County's transportation advocates in Sacramento, Smith Watts Co., advise us that the state will host a series of workshops with the transportation community in the coming months to work out the details of the funding processes for the various categories. The $2 billion that is allocated to cities and counties will be distributed using a formula that is based on the number of public road miles and the number of registered vehicles in each jurisdiction. This formula,which has been used for other transportation funding programs as well, gives Contra Costa County about two percent of the total statewide funds available to counties. If the local funds were allocated to jurisdictions based on current roadway and vehicle registration data, Contra Costa County would receive $24.5 million from the bond's local roads program, according to tables published by the Metropolitan Transportation Commission (see Exhibit C). The County's cities would receive an estimated total of$27.5 million. The Corridor Mobility Program, at $4.5 billion, would provide funds for projects of major significance on highly congested transportation corridors. Examples of such projects in Contra Costa County include the Caldecott Tunnel expansion on State Route 24 and the State Route 4 East Freeway Widening project. The pending workshops with state officials will help transportation staff determine the potential eligibility for these projects. Proposition 1A: Resolution to Proposition 42 transportation funding issues This measure, also referred to as the "Proposition 42 fix", would resolve the debate over whether, when, and how to distribute Proposition 42 funds to transportation programs. The Governor and Legislature have suspended distribution of these funds to transportation in most of the years since Proposition 42 was passed, so transportation programs haven't yet received these funds as intended by the measure. The resolution proposed by Proposition 1A would do the following: • Allow future Proposition 42 funds to be held in the General Fund only as a temporary"loan" from transportation, if the Governor and 2/3 of the Legislature vote to do so based on financial emergency; • Allow such loans only twice in any ten-year period; • Require that any such loans must be paid back to the transportation program within three years, and prohibit any new loans until. the prior loan has been completely repaid to transportation; • Shift the roughly$2 billion in already-suspended Proposition 42 funds overto transportation gradually over a ten-year period, with at least one-tenth paid each year, to minimize the impacts to the General Fund. These are the pertinent features of the transportation bond measure and Proposition 42 fix as presently known to the Transportation, Water and Infrastructure Committee and staff. At the Board's request, the Committee will provide a similar report on the Flood Prevention Measure, Proposition 1E. EXHIBIT A Senate Bill No. 1266 Passed the Senate May 5, 2006 Secretary of the Senate Passed the Assembly May 5, 2006 Chief Clerk of the Assembly This bill was received by the Governor this day of , 2006, at o'clock M. Private Secretary of the Governor SB 1266 —2— CHAPTER 2—CHAPTER An act to add Chapter 12.49 (commencing with Section 8879.20) to Division 1 of Title 2 of the Government Code, relating to transportation, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds, and declaring.the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 1266, Perata. Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006. Existing law provides various funding sources for transportation and related purposes. This bill, subject to voter approval at the November 7, 2006, statewide general election, would enact the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 to authorize $19.925 billion of state general obligation bonds for specified purposes, including high-priority transportation corridor improvements, State Route 99 corridor enhancements, trade infrastructure and port security projects, schoolbus retrofit and replacement purposes, state transportation improvement program augmentation, transit and passenger rail improvements, state-local partnership transportation projects, transit security projects, local bridge seismic retrofit projects, highway-railroad grade separation and crossing improvement projects, state highway safety and rehabilitation projects, and local street and road improvement, congestion relief, and traffic safety. This bill would declare that it is to take effect immediately as an urgency statute. The people of the State of California do enact a.s follows: SECTION 1. Chapter 12.49 (commencing with Section 8879.20) is added to Division 1 of Title 2 of the Government Code, to read: 96 -3— SB 1266 CHAPTER 12.49. THE HIGHWAY SAFETY,TRAFFIC REDUCTION,AIR QUALITY,AND PORT SECURITY BOND ACT OF 20o6 Article 1. General Provisions 8879.20. (a) This chapter shall be known as the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006. (b) This chapter shall only become operative upon adoption by the voters at the November 7, 2006, statewide general election. . 8879.22. As used in this chapter, the following terms have the following meanings: (a) `Board" means any department receiving an allocation of bond proceeds pursuant to this chapter. (b) "Committee" means the Highway Safety, Traffic Reduction, Air Quality, and Port Security Committee created pursuant to Section 8879.27. (c) "Fund" means the Highway Safety, Traffic Reduction, Air Quality, and Port Security Fund of 2006 created pursuant to Section 8879.23. Article 2. Highway Safety,Traffic Reduction,Air Quality, and Port Security Fund of 2006 and Program 8879.23. The Highway Safety, Traffic Reduction, Air Quality, and Port Security Fund of 2006 is hereby created in the State Treasury. The Legislature intends that the proceeds of bonds deposited in the fund shall be used to fund the mobility, safety, and air quality improvements described in this article over the course of the next decade. The proceeds of bonds issued and sold pursuant to this chapter for the purposes specified in this chapter shall be allocated in the following manner: (a) (1) Four billion five hundred million dollars ($4,500,000,000) shall be deposited in the Corridor Mobility Improvement Account, which is hereby created in the fund. Funds in the account shall be available to the California Transportation Commission, upon appropriation in the annual Budget Bill by the Legislature, for allocation for performance improvements on highly congested travel corridors in California. 96 SB 1266 —4— Funds 4—Funds in the account . shall be used for performance improvements on the state highway system, or major access routes to the state highway system on the local road system that relieve congestion by expanding capacity, enhancing operations, or otherwise improving travel times within these high-congestion travel corridors, as identified by the department and regional or local transportation agencies, pursuant to the process in paragraph (3) or(4), as applicable. (2) The commission shall develop and adopt guidelines, by December 1, 2006, including regional programming targets, for the program funded by this subdivision, and shall allocate funds from the account to projects after reviewing project nominations submitted by the Department of Transportation and by regional transportation planning - agencies or county transportation commissions or authorities pursuant to paragraph (4). (3) Subject to the guidelines adopted pursuant to paragraph (2), the department shall nominate, by no later than January 15, 2007, projects for the allocation of funds from the account on a statewide basis. The department's nominations shall be geographically balanced and shall reflect the department's assessment of a program that best meets the policy objectives described in paragraph (1). (4) Subject to the guidelines adopted pursuant to paragraph (2), a regional transportation planning agency or county transportation commission or authority responsible for preparing a regional transportation improvement plan under Section 14527 may nominate projects identified pursuant to paragraph (1) that best meet the policy objectives described in that paragraph for funding from the account. Projects nominated pursuant to this paragraph shall be submitted to the commission for consideration for funding by no later than January 15, 2007. (5) All nominations to the California Transportation Commission shall be accompanied by documentation regarding the quantitative and qualitative measures validating each project's consistency with the policy objectives described in paragraph (1). All projects nominated to the commission for funds from this account shall be included in a regional transportation plan. (6) After review of the project nominations, and supporting documentation, the commission, by no later than March 1, 2007, 96 -5— SB 1266 shall adopt an initial program of projects to be funded from the account. This program may be updated every two years in conjunction with the biennial process for adoption of the state transportation improvement program pursuant to guidelines adopted by the commission. The inclusion of a project in the program shall be based on a demonstration that the project meets all of the following criteria: (A) Is a high-priority,project in the corridor as demonstrated by either of the following: (i) its inclusion in the list of nominated projects by both the department pursuant to paragraph (3) and the regional transportation planning agency or county transportation commission or authority, pursuant to paragraph (4); or (ii) if needed to fully fund the project, the identification and commitment of supplemental funding to the project from other state, local, or federal funds. (B) Can commence construction or implementation no later than December 31, 2012. (C) Improves mobility in a high-congestion corridor by improving travel times or reducing the number of daily vehicle hours of delay, improves the connectivity of the state highway system between rural, suburban, and urban areas,or improves the operation or safety of a highway or road segment. (D) Improves access to jobs, housing, markets, and commerce. (7) Where competing projects offer similar mobility improvements to a specific corridor, the commission shall consider additional benefits when determining which project shall be included in the program for funding. These benefits shall include, but are not limited to, the following: (A) A finding that the project provides quantifiable air quality benefits. (B) A finding that the project substantially increases the safety for travelers in the corridor. (8) In adopting a program for funding pursuant to this subdivision, the commission shall make a finding that the program is (i) geographically balanced, consistent with the geographic split for funding described in Section 188 of the Streets and Highways Code; (ii)provides mobility improvements in highly traveled or highly congested corridors in all regions of California; and (iii) targets bond proceeds in a manner that provides the increment of funding necessary, when combined 96 1 SB 1266 —6— with 6—with other state, local or federal funds, to provide the mobility benefit in the earliest possible timeframe. (9) The commission shall include in its annual report to the Legislature, required by Section 14535, a summary of its activities related to the administration of this program. The summary should, at a minimum, include a description and the location of the projects contained in the program, the amount of funds allocated to each project, the status of each project, and a description of 'the mobility improvements the program is achieving. (b) One billion dollars ($1,000,000,000) shall be made available, upon appropriation in the annual Budget Bill by the Legislature, to the department for improvements to State Route 99. Funds may be used for safety, operational enhancements, rehabilitation, or capacity improvements necessary to improve the State Route 99 corridor traversing approximately 400 miles of the central valley of this state. (c) Three.billion one hundred million dollars ($3,100,000,000) shall be deposited in the California Ports Infrastructure, Security, and Air Quality Improvement Account, which is hereby created in the fund. The money in the account shall be available, upon appropriation by the Legislature and subject to such conditions and criteria as the Legislature may provide by statute, as follows: (1) (A) Two billion dollars ($2,000,000,000) shall be transferred to the Trade Corridors Improvement Fund, which is hereby created. The money in this fund shall be available, upon appropriation in the annual Budget. Bill by the Legislature and subject to such conditions and criteria as the Legislature may provide by statute, for allocation by the California Transportation Commission for infrastructure improvements along federally designated "Trade Corridors of National Significance" in this state or along other corridors within this state that have a high volume of freight movement, as determined by the commission. In determining projects eligible for funding,the commission shall consult the trade infrastructure and goods movement plan submitted to the commission by the Secretary of Business, Transportation and Housing and the Secretary for Environmental Protection. No moneys shall be allocated from this fund until the report is submitted to the commission for its consideration, provided the report is submitted no later than January 1, 2007. 96 -7— SB 1266 The commission shall also consult trade infrastructure and goods movement plans adopted by regional transportation planning agencies, adopted regional transportation plans required by state and federal law, and the statewide port master plan prepared by the California Marine and Intermodal Transportation System Advisory Council (Cal-MITSAC) pursuant to Section 1760 of the Harbors and Navigation Code, when determining eligible projects for funding. Eligible projects for these funds include,but are not limited to, all of the following: (i) Highway capacity , improvements and operational improvements to more efficiently accommodate the movement of freight, particularly for ingress and egress to and from the state's seaports, including navigable inland waterways used to transport freight between seaports, land ports of entry, and airports, and to relieve traffic congestion along major trade or goods movement corridors. (ii) Freight rail system improvements to enhance the ability to move goods from seaports, land ports of entry, and airports to warehousing and distribution centers throughout California, including projects that separate rail lines from highway or local road traffic, improve freight rail mobility through mountainous regions, relocate rail switching yards, and other projects that improve the efficiency and capacity of the rail freight system. (iii) Projects to enhance the capacity and efficiency of ports. (iv) Truck,corridor improvements, including dedicated truck facilities or truck toll facilities. (v) Border access improvements that enhance goods movement between California and Mexico and that maximize the state's ability to access coordinated border infrastructure funds made available to the state by federal law. (vi) Surface transportation improvements to facilitate the movement of goods to and from the state's airports. (B) The commission shall allocate funds for trade infrastructure improvements from the account in a manner that(i) addresses the state's most urgent needs, (ii) balances the demands of various ports (between large and small ports, as well as between seaports, airports, and land ports of entry), (iii) provides reasonable geographic balance between the state's regions, and (iv) places emphasis on projects that improve trade corridor mobility while reducing emissions of diesel particulate 96 SB 1266 —8— and 8— and other pollutant emissions. In addition, the commission shall also consider the following factors when allocating these funds: (i) "Velocity," which means the speed by which large cargo would travel from the port through the distribution system. (ii) "Throughput," which means the volume of cargo that would move from the port through the distribution system. (iii) "Reliability," which means a reasonably consistent and predictable amount of time for cargo to travel from one point to another on any given day or at any given time in California. (iv) "Congestion reduction," which means the reduction in recurrent daily hours of delay to be achieved. (C) The commission shall allocate funds made available by this paragraph to projects that have identified and committed supplemental funding from appropriate local, federal or private sources. The commission shall determine the appropriate amount of supplemental funding each project should have to be eligible for moneys from this fund based on a project-by-project review and an assessment of the project's benefit to the state and the program. Except for border access improvements described in clause (v) of subparagraph (A), improvements funded with moneys from this fund shall have supplemental funding that is at least equal to the amount of the contribution from the fund. The commission may give priority for funding to projects with higher levels of committed supplemental funding. (D) The commission shall include in its annual report to the Legislature, required by Section 14535, a summary of its activities related to the administration of this program. The summary should, at a minimum, include a description and the location of the projects contained in the program, the amount of funds allocated to each project, the status of each project, and a description of the mobility and air quality improvements the program is achieving. (2) One billion dollars ($1,000,000,000) shall be made available, upon appropriation by the Legislature and subject to such conditions and criteria contained in a statute enacted by the Legislature, to the State Air Resources Board for emission reductions, not otherwise required by law or regulation, from activities related to the movement of freight along California's trade corridors. Funds made available by this paragraph are intended to supplement existing funds used to finance strategies 96 -9— SB 1266 and public benefit projects that reduce emissions and improve air quality in trade corridors commencing at the state's airports, seaports, and land ports of entry. (3) One hundred million dollars ($100,000,000) shall be available, upon appropriation by the Legislature, to the Office of Emergency Services to be allocated, as grants, for port, harbor, and ferry terminal security improvements. Eligible applicants shall be publicly owned ports, harbors, and ferryboat and ferry terminal operators, which may submit applications for projects that include, but are not limited to, the following: (A) Video surveillance equipment. (B) Explosives detection technology, including, but not limited to, X-ray devices. (C) Cargo scanners. (D) Radiation monitors. (E) Thermal protective equipment. (F) Site identification instruments .capable of providing a fingerprint for a broad inventory of chemical agents. (G) Other devices capable of detecting weapons of mass destruction using chemical, biological, or other similar substances. (H) Other security equipment to assist in any of the following: (i) Screening of incoming vessels, trucks, and incoming or outbound cargo. (ii) Monitoring the physical perimeters of harbors, ports, and ferry terminals. (iii) Providing or augmenting onsite emergency response capability. (I) Overweight cargo detection equipment, including, but not limited to, intermodal crane scales and truck weight scales. (J) Developing disaster preparedness or emergency response plans. The Office of Emergency Services shall report to the . Legislature on March 1 of each year on the manner in which the funds available pursuant to this paragraph were expended for that fiscal year. (d) Two hundred million dollars ($200,000,000) shall be available, upon appropriation by the Legislature, for schoolbus retrofit and replacement to reduce air pollution and to reduce children's exposure to diesel exhaust. 96 SB 1266 _10— (e) Two billion dollars ($2,000,000,000) shall be available for projects in the state transportation improvement program, to augment funds otherwise available for this purpose from other sources. The funds provided by this subdivision shall be deposited in the Transportation Facilities Account which is hereby created in the fund, and shall be available, upon appropriation by the Legislature, to the Department of Transportation, as allocated by the California Transportation Commission in the same manner as funds allocated for those projects under existing law. (f) (1) Four billion dollars($4,000,000,000)shall be deposited in the Public Transportation Modernization, Improvement, and Service Enhancement Account, which is hereby created in the fund. Funds in the account shall be made available, upon appropriation by the Legislature, to the Department of Transportation for intercity rail projects and to commuter or urban rail operators, bus operators, waterborne transit operators, and other transit operators in California for rehabilitation, safety or modernization improvements, capital service enhancements or expansions, new capital projects, bus rapid transit improvements, or for rolling stock procurement, rehabilitation, or replacement. (2) Of the funds made available in paragraph (1), four hundred million dollars ($400,000,000) shall be available, upon appropriation by the Legislature, to the department for intercity rail improvements, of which one hundred twenty-five million dollars ($125,000,000) shall be used for the procurement of additional intercity railcars and locomotives. (3) Of the funds remaining after the allocations in paragraph (2), 50 percent shall be distributed to the Controller, for allocation to eligible agencies using the formula in Section 99314 of the Public Utilities Code, and 50.percent shall be distributed to the Controller, for allocation to eligible agencies using the formula in Section 99313 of the Public Utilities Code, subject to the provisions governing funds allocated under those sections. (g) One billion dollars ($1,000,000,000) shall be deposited in the State-Local Partnership Program Account, which is hereby created in the fund. The funds shall be available, upon appropriation by the Legislature and subject to such conditions and criteria as the Legislature may provide by statute, for allocation by the California Transportation Commission over a 96 -11— SB 1266 five-year period to eligible transportation projects nominated by an applicant transportation agency. A dollar for dollar match of local funds shall be required for an applicant transportation agency to receive state funds under this program. (h) One billion dollars ($1,000,000,000) shall be deposited in the Transit System Safety, Security, and Disaster Response Account, which is hereby created in the fund. Funds in the account shall be made available, upon appropriation by the Legislature and subject to such conditions and criteria as the Legislature may provide by statute, for capital projects that provide increased protection against a security and safety threat, and for capital expenditures to increase the capacity of transit operators, including waterborne transit operators, to develop disaster response transportation systems that can move people, goods, and emergency personnel and equipment in the aftermath of a disaster impairing the mobility of goods, people, and equipment. .(i) One hundred twenty-five million dollars ($125,000,000) shall be deposited in the Local Bridge Seismic Retrofit Account, which is hereby created in the fund. The funds in the account shall be used, upon appropriation by the Legislature, to provide the 11.5 percent required match for federal Highway Bridge Replacement and Repair funds available to the state for seismic work on local bridges,ramps,and overpasses, as identified by the Department of Transportation. 0) (1) Two hundred fifty million dollars ($250,000,000) shall be deposited in the Highway-Railroad Crossing Safety Account, which is hereby created in the fund. Funds in the account shall be available, upon appropriation by the Legislature, to the Department of Transportation for the completion of high-priority grade separation and railroad crossing safety improvements. Funds in the account shall be made available for allocation pursuant to the process established in Chapter 10 (commencing with Section 2450) of Division 3 of the Streets and Highways Code, except that a dollar for dollar match of nonstate funds shall be provided for each project, and the limitation on maximum project cost in subdivision (g) of Section 2454 of the Streets and Highways Code shall not be applicable to projects funded with these funds. 96 = 13— SB 1266 proportion that the number of fee-paid and exempt vehicles that are registered in the county bears to the number of fee-paid and exempt vehicles registered in the state (ii) Twenty-five percent of the funds payable under this subparagraph shall be apportioned among the counties in the proportion that the number of miles of maintained county roads in each county bears to the total number of miles of maintained county roads in the state. For the purposes of apportioning funds under this clause, any roads within the boundaries of a city and county that are not state highways shall be deemed to be county roads. (B) Fifty percent to the cities, including a city and county, apportioned among the cities in the proportion that the total population of the city bears to the total population of all the cities in the state, provided, however, that the Controller shall allocate a minimum of four hundred thousand dollars ($400,000) to each city, pursuant to this subparagraph. (2) Funds received under this subdivision shall be deposited as follows in order to avoid the commingling of those funds with other local funds: (A) In the case of a city, into the city account that is designated for the receipt of state funds allocated for local streets and roads. (B) In the case of an eligible county, into the county road fund. (C) In the case of a city and county, into a local account that is designated for the receipt of state funds allocated for local streets and roads. (3) For the purpose of allocating funds under this subdivision to cities and a city and county, the Controller shall use the most recent population estimates prepared by the Demographic Research Unit of the Department of Finance. For a city that incorporated after January 1, 1998, that does not appear on the . most recent population estimates prepared by the Demographic Research Unit, the Controller shall use the population determined for that city under Section 11005.3 of the Revenue and Taxation Code. (4) Funds apportioned to a city, county, or city and county under this subdivision shall be used for improvements to transportation facilities that will assist in reducing local traffic congestion and further deterioration, improving traffic flows, or x SB 1266 —14— increasing 14—increasing traffic safety that may include, but not be limited to, street and highway pavement maintenance, rehabilitation, installation, construction and reconstruction of necessary associated facilities such as drainage and traffic control devices, or the maintenance, rehabilitation, installation, construction and reconstruction of facilities. that expand ridership on transit systems, safety projects to reduce fatalities, or as a local match to obtain state or federal transportation funds for similar purposes. (5) At the conclusion of each fiscal year during which a city or county expends the funds it has received under this subdivision, the Controller may verify the city's or county's compliance with paragraph (4). Any city or county that has not complied with paragraph (4) shall reimburse the state for the funds it•reccived during that fiscal year. Any funds withheld or returned as a result of a failure to comply with paragraph (4) shall be reallocated to the other counties and cities whose expenditures are in compliance. Article 3. Fiscal Provisions 8879.25. Bonds in the total amount of nineteen billion nine hundred twenty-five million dollars ($19,925,000,000), exclusive of. refunding bonds, or so much thereof as is necessary, are hereby authorized to be issued and sold for carrying out the purposes expressed in this chapter and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5. All bonds herein authorized which have been duly sold and delivered as provided herein shall constitute valid and legally binding general obligations of the state, and the full faith and credit of the state is hereby pledged for the punctual payment of both principal and interest thereof. 8879.26. The bonds authorized by this chapter shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4), except subdivision (a) of Section 16727 to the extent that subdivision is inconsistent with this chapter, and all of the other provisions of that law as amended from time to time apply to the bonds and to this chapter and arc hereby incorporated in this chapter as though set forth in full in this chapter. 96 -15— SB 1266 8879.27. (a) Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this chapter, the Highway Safety, Traffic Reduction, Air Quality, and Port Security Committee is hereby created. For the purposes of this chapter, the Highway Safety, Traffic Reduction, Air Quality, and Port Security Committee is"the committee"as that term is used in the State General Obligation Bond Law. The committee consists of the Treasurer, the Controller, the Director of Finance, and the Secretary of the Business, Transportation and Housing Agency, or a designated representative of each of those officials. The Treasurer shall serve as the chairperson of the committee. A majority of the committee may act for the committee. (b) The committee may adopt guidelines establishing requirements for administration of its financing programs to the extent necessary to protect the validity of, and tax exemption for, interest on the bonds. The guidelines shall not constitute rules, regulations, orders, or standards of general application. (c) For the purposes of the State General Obligation Bond Law, any department receiving an allocation pursuant to this chapter is designated to be the "board." 8879.28. Upon request of the board stating that funds are needed for purposes of this chapter, the committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to this chapter in order to carry out the actions specified in Section 8879.23, and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and are not required to be sold at any one time. Bonds may bear interest subject to federal income tax. 8879.29. There shall be collected annually, in the same manner and at the same time as other state revenue is collected, a sum of money in addition to the ordinary revenues of the state, sufficient to pay the principal of, and interest on, the bonds as provided herein, and all officers required by law to perform any duty in regard to the collections of state revenues shall collect that additional sum. 8879.30. Notwithstanding Section 13340, there is hereby appropriated from the General Fund in the State Treasury, for the 96 SB 1266 =16— purposes 6—purposes of this chapter, an amount that will equal the total of the following: (a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this chapter, as the principal and interest become due and payable. (b) The sum which is necessary to carry out Section 8879.32, appropriated without regard to fiscal years. 8879.31. The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312, for purposes of this chapter. The amount of the request shall not exceed the amount of the unsold bonds which the committee has, by resolution, authorized to be sold for the purpose of this chapter, less any amount withdrawn pursuant to Section 8879.32. The board shall execute any documents as required by the Pooled Money Investment Board to obtain and repay the loan. Any amount loaned shall be deposited in the fund to be allocated in accordance with this chapter. 8879.32. For the purpose of carrying out this chapter, the Director of Finance may, by executive order, authorize the withdrawal from the General Fund of any amount or amounts not to exceed the amount of the unsold bonds which the committee has, by resolution, authorized to be sold for the purpose of carrying out this chapter. Any amounts withdrawn shall be deposited in the Highway Safety, Traffic Reduction,Air Quality, and Port Security Fund of 2006. Any money made available under this section shall be returned to the General Fund, plus the interest that the amounts would have earned in the Pooled Money Investment Account, from money received from the sale of bonds which would otherwise be deposited in that fund. 8879.33. The bonds may be refunded in accordance with Article 6 (commencing with Section 16780) of the State General Obligation Bond Law. Approval by the electors of this act shall constitute approval of any refunding bonds issued pursuant to the State General Obligation Bond Law. 8879.34. Notwithstanding any provisions in the State General Obligation Bond Law, the maximum maturity of any bonds authorized by this chapter shall not exceed 30 years from the date of each respective series. The maturity of each series shall be calculated from the date of each series. 96 -17— SB 1266 8879.35. The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this chapter are not "proceeds of taxes" as that term is used in Article XIII B of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article. 8879.36. Notwithstanding any provision of the State General Obligation Bond Law with regard to the proceeds from the sale of bonds authorized by this chapter that are subject to investment under Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4, the Treasurer may maintain a separate account for investment earnings, order the payment of those earnings to comply with any rebate requirement applicable under federal law, and may otherwise direct the use and investment of those proceeds so as to maintain the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state. 8879.37. All money derived from premium and accrued interest on bonds sold pursuant to this chapter shall be transferred to the General Fund as a credit to expenditures for bond interest. SEC. 2. Section 1 of this act shall become operative upon the adoption by the voters of the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006, as set forth in Section 1 of this act. SEC. 3. Notwithstanding Sections 13115 and 13117 of the Elections Code, the following measures shall be placed on the ballot for the November 7, 2006, statewide general election in the following order: (a) Senate Constitutional Amendment No. 7 of the 2005-2006 Regular Session shall be placed first on the ballot and shall be designated as Proposition IA. (b) The Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 shall be placed second on the ballot and shall be designated as Proposition 1B. (c) The Housing and Emergency Shelter Trust Fund Act of 2006 shall be placed third on the ballot and shall be designated as Proposition 1 C. (d) The Kindergarten-University Public Education Facilities Bond Act of 2006 shall be placed fourth on the ballot and shall be designated as Proposition 1D. 96 SB 1266 —18— (e) 18—(e) The Disaster Preparedness and Flood Prevention Bond Act of 2006 shall be placed fifth on the ballot and shall be designated as Proposition 1 E. SEC. 4. (a) Notwithstanding any other provision of law, all ballots of the November 7, 2006, statewide general election shall have printed thereon and in a square thereof, the words "Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006," and in the same square under those words, the following in 8-point type: "This act makes safety improvements and repairs to state highways, upgrades freeways to reduce congestion, repairs local streets and roads, upgrades highways along major transportation corridors, improves seismic safety of local bridges, expands public transit, helps complete the state's network of car pool lanes, reduces air pollution, and improves anti-terrorism security at shipping ports by providing for a bond issue not to exceed nineteen billion nine hundred twenty-five million dollars ($19,925,000,000)" Opposite the square, there shall be left spaces in which the voters may place a cross in the manner required by law to indicate whether they vote for or against the act. (b) Notwithstanding Sections 13247 and 13281 of the Elections Code, the language in subdivision (a) shall be the only language included in the ballot label for the condensed statement of the ballot title, and the Attorney General shall not supplement, subtract from, or revise that language, except that the Attorney General may include the financial impact summary prepared pursuant to Section 9087 of the Elections Code and Section 88003 of the Government Code.The ballot label is the condensed statement of the ballot title and the financial impact summary. (c) Where the voting in the election is done by means of voting machines used pursuant to law in the manner that carries out the intent of this section, the use of the voting machines and the expression of the voters' choice by means thereof are in compliance with this section. SEC. 5. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: 96 =19— SB 1266 In order for the bond act in Section 1 of this act to be submitted to the voters at the November 7,2006, statewide general election, it is necessary for this act to take effect immediately. 96 EXHIBIT B Senate Constitutional Amendment No.7 RESOLUTION CHAPTER 49 Senate Constitutional Amendment Into. 7—A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 1 of Article XIX B thereof, relating to transportation. [Filed with Secretary of State May 9,2006.] LEGISLATIVE COUNSEL'S DIGEST SCA 7,Torlakson. Transportation Investment Fund. Article XIXB of the California Constitution requires,commencing with the 2003-04 fiscal year, that sales taxes on motor vehicle fuel that are deposited into the General Fund be transferred to the Transportation Investment Fund (TIF) for allocation for various transportation purposes. Article XIX B authorizes this transfer to the TIF to be suspended in whole or in part for a fiscal year during a fiscal emergency pursuant to a proclamation by the Governor and the enactment of a statute by a 2/3 vote in each house of the Legislature if the statute does not contain any unrelated provision. This measure would recast these suspension provisions. This measure would authorize a suspension, in whole or in part, of the transfer of these revenues to the TIF for a fiscal year if (1) the Governor issues a proclamation that the suspension is necessary due to a severe state fiscal hardship, (2) a statute containing no other unrelated provision is enacted by a 2/3 vote of each house of the Legislature suspending the transfer,and (3) a statute is enacted to repay, with interest, the TIF within 3 years for the amount of any revenues that were not transferred as a result of the suspension. This measure would also prohibit a suspension of transfer of these revenues from occurring more than twice during any period of 10 consecutive fiscal years,and would prohibit a suspension in any fiscal year in which a required repayment from a prior suspension has not been fully completed. This measure would also require payments to be made from the General Fund to the Transportation Investment Fund relative to a portion of the revenues that were not transferred due to a suspension of transfer occurring on or before July 1, 2007, with payments made pursuant to a specified schedule. Resolved by the Senate, the Assembly concurring, That the Legislature of the State of California at its 2005-06 Regular Session commencing on the sixth day of December 2004, two-thirds of the membership of each 94 Res.Ch.49 —2— house 2—house concurring,hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows: That Section 1 of Article XIX B thereof is amended to read: SECTION 1. (a) For the 2003-04 fiscal year and each fiscal year thereafter, all moneys that are collected during the fiscal year from taxes under the Sales and Use Tax Law(Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code),or any successor to that law, upon the sale, storage, use, or other consumption in this State of motor'vehicle fuel, and that are deposited in the General Fund of the State pursuant to that law, shall be transferred to the Transportation Investment Fund,which is hereby created in the State Treasury. (b) (1) For the 2003-04 to 2007-08 fiscal years, inclusive, moneys in the Transportation Investment Fund shall be allocated,upon appropriation by the Legislature, in accordance with Section 7104 of the Revenue and Taxation Code as that section read on March 6,2002. (2) For the 2008-09 fiscal year and each fiscal year thereafter, moneys in the Transportation Investment Fund.shall be allocated solely for the following purposes: (A) Public transit and mass transportation. (B) Transportation capital improvement projects, subject to the laws governing the State Transportation Improvement Program, or any successor to that program. (C) Street and highway maintenance, rehabilitation, reconstruction, or stone damage repair conducted by cities, including a city and county. (D) Street and highway maintenance, rehabilitation, reconstruction, or storm damage repair conducted by counties,including a city and county. (c) For the 2008-09 fiscal year and each fiscal year thereafter, moneys in the Transportation Investment Fund shall be allocated, upon appropriation by the Legislature,as follows: (A) Twenty percent of the moneys for the purposes set forth in subparagraph(A)of paragraph(2)of subdivision (b). (B) Forty percent of the moneys for the purposes set forth in subparagraph(B)of paragraph (2)of subdivision(b). (C) Twenty percent of the moneys for the purposes set forth in subparagraph(C)of paragraph(2)of subdivision(b). (D) Twenty percent of the moneys for the purposes set forth in subparagraph(D)of paragraph(2)of subdivision(b). (d) (1) Except as otherwise provided by paragraph (2), the transfer of revenues from the General Fund of the State to the Transportation Investment Fund pursuant to subdivision (a) may be suspended, in whole or in part, for a fiscal year if all of the following conditions are met: (A) The Governor issues a proclamation that declares that, due to a severe state fiscal hardship, the suspension of the transfer of revenues required by subdivision(a)is necessary. (B) The Legislature enacts by statute, pursuant to a bill passed in each house of the Legislature by rollcall vote.entered in the journal, two-thirds of the membership concurring, a suspension for that fiscal year of the 94 �I I i i —3— Res.Ch.49 transfer of revenues required by subdivision (a) and the bill does not contain any other unrelated provision. i (C) No later than the effective date of the statute described in subparagraph (B), a separate statute is enacted that provides for the full repayment to the Transportation Investment Fund of the total amount of revenue that was not transferred to that fund as a result of the suspension, including interest as provided by law. This full repayment shall be made not later than the end of the third fiscal year immediately following the fiscal year to which the suspension applies. (2) (A) The transfer required by subdivision(a)shall not be suspended for more than two fiscal years during any period of 10 consecutive fiscal years, which period begins with the first fiscal year commencing on or after July 1, 2007, for which the transfer required by subdivision (a) is suspended. (B) The transfer required by subdivision (a) shall not be suspended during any fiscal year if a full repayment required by a statute enacted in accordance with subparagraph (C) of paragraph (1) has not yet been completed. (e) The Legislature may enact a statute that modifies the percentage shares set forth in subdivision (c) by a bill passed in each house of the Legislature by rollcall vote entered in the journal, two-thirds of the membership concurring,provided that the bill does not contain any other unrelated provision and that the moneys described in subdivision (a) are expended solely for the purposes set forth in paragraph (2) of subdivision (b). (f) (1) An amount equivalent to the total amount of revenues that were not transferred from the General Fund of the State to the Transportation Investment Fund,as of July 1,2007,because of a suspension of transfer of revenues pursuant to this section as it read on January 1, 2006, but excluding the amount to be paid to the Transportation Deferred Investment Fund pursuant to Section 63048.65 of the Government Code, shall be transferred from the General Fund to the Transportation Investment Fund no later than June 30, 2016. Until this total amount has been transferred, the amount of transfer payments to be made in each fiscal year shall not be less than one-tenth of the total amount required to be transferred by June 30, 2016. The transferred revenues shall be allocated solely for the purposes set forth in this section as if they had been received in the absence of a suspension of transfer of revenues. (2) The Legislature may provide by statute for the issuance of bonds by the state or local agencies,as applicable,that are secured by the minimum transfer payments required by paragraph (1). Proceeds from the sale of those bonds shall be allocated solely for the purposes set forth in this section as if they were revenues subject to allocation pursuant to paragraph. (2)of subdivision(b). O 94 EXHIBIT C Bay Area and Contra Costa Share of SB1266 Local Street and Road Funds Nole:All lVi wbers are estimates mrd subject to charge STATEWIDE AMOUNT $ 2,000,000,000 BAY AREA SHARE $ 375,435,420 DISTRIBUTIONS TO COUNTIES $ 167,675,794 DISTRIBUTIONS TO CITIES $ 207,759,626 DIRECT DISTRIBUTIONS TO COUNTIES r ALLOCATION Alameda $31,250,390 Contra Costa $24,570,278 Matin $7,381,728 Napa $4,998,243 San Francisco $14,656,034 San Mateo $18,472,879 Santa Clara $38,048,019 Solano $11,375,937 Sonoma $16,922,286 Region $167,675,794 CONTRA COSTA ANTIOCH $ 3,207,143 BREN-1AVOOD $ 1,458,044 CLAYTON $ 400,000 CONCORD $ 3,953,481 DANVILLE $ 1,367,814 EL CERRITO $ 745,702 HERCULES $ 757,235 LAFAYETI'E $ 768,577 ,L-iRTINEZ $ 1,162,254 1\1ORAGA $ 519,078 OAKLI-Y $ 923,716 ORINDA $ 562,128 PINOLE $ 618,426 PITTSBURG $ 2,000,918 PLEASANT HILL $ 1,063,128 RICHMOND $ 3,287,302 SAN PABLO $ 991,770 SAN RAMON $ 1,688,226 WALNUT CREEK $ 2,100,426 CONTRA COSTA CITIES TOTAL I $ 27,575,368 Sources:"1'able provided by the\lctropolitan'l'ranspurtation Commission,May 10,2006. County calculations provided by the California State Association of Counties. City calculations provided by the California League of Cities based on data from January 2006.