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HomeMy WebLinkAboutMINUTES - 05012007 - C.24 TO: BOARD OF SUPERVISORS C. z FROM: SUPERVISOR MARY N. PIEPHO = ;, Contra o. Costa DATE: MAY 1, 2007 4 COU my SUBJECT: SUPPORT FOR SB 286: ALLOCATION OF PROPOSITION 1B LOCAL STREETS AND ROADS FUNDS SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT a position of SUPPORT for SB 286 (Lowenthal, Dutton) which will allocate Proposition 1 B Local Streets and Roads Funds in two cycles over the next four years, as recommended by the District III Supervisor. FISCAL IMPACT NONE to the General Fund. If the bill becomes law, it will result in the County receiving its $24.5 million in direct transportation subventions from Proposition 1 B more quickly and with a minimal amount of regulatory bureaucracy. BACKGROUND/REASONS FOR RECOMMENDATIONS Proposition 1 B, the statewide transportation infrastructure bond approved by the voters in November 2006, includes $2 billion for direct allocation to local governments ($1 billion to cities and $1 billion to counties), for use by the local jurisdictions in improving local roadways. The distribution formula will be the same formula that has long been in use to distribute state gas tax revenues to local jurisdictions. By formula, Contra Costa County expects to receive approximately $24.5 million. Legislative discussi are now focusing on the process and schedule by which these funds will be stribu a to the local jurisdictions. CONTINUED ON ATTACHMENT: X/ YES SIGvNATUR . _ RECOMMENDATION OF COUNTY ADMINISTRATOR RE OMMEN N OF BOARD COMMITTEE _APPROVE _OTHER SIGNATURE (S): ACTION OF BOARD ON �2&d2 APPROVED AS RECOMMENDED e'OR VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS (ABSENT�) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE ABSENT: ABSTAIN: BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: John Greitzer (925/335-1201) cc: Community Development Department (CDD) ATTESTED 7 L. DeLaney, CAD's Office JOHN CUL EN, CLERK OF Public Works Department T E BOARD OF SUPERVISORS Cathy Christian, Nielsen Merksamer ND COUNTY ADMINISTRATOR Mark Watts, California Strategies BY PUTY C:\DOCUME-1\enea\LOCALS-1\Temp\notes6030C8\SB 286 Support May 1 2007 REVISED doc SUPPORT FOR SB 286 MAY 1, 2007 Page 2 The process debate involves the question of how much regulation or oversight the state should exercise over the distribution and use of the funds, and whether such oversight should be exercised by the legislature or the California Transportation Commission. The schedule debate centers on the question of how quickly the funds should be distributed. Suggestions have ranged from lump sum distributions to annual distributions over ten years. SB 286, co-sponsored by the California State Association of Counties and the League of California Cities, addresses both aspects of the debate in a way that would be beneficial to the County and other local jurisdictions. The bill would require the funds be distributed in two funding cycles over the next four years. The first cycle —which must include at least 50 percent of the allocation --- would be paid to the local jurisdictions by January 1, 2008, and the second cycle by January 1, 2010. The bill also enables a county to receive its entire allocation in the next two fiscal years if it can demonstrate the ability to use the funds within those two years. The bill also requires each local jurisdiction, upon receiving its funds, to submit a report to the State Department of Finance listing all the projects the jurisdiction expects to construct with the funds. All the projects on the list must be in the jurisdiction's adopted budget. Each jurisdiction also would have to report to the Department of Finance on the status of its project expenditures at the end of each fiscal year. The status reports would be posted on the Department of Finance website. This is in keeping with the Governor's stated desire to maintain high public accountability for the timely use of the funds. These reporting requirements are not onerous and will not pose difficulties for the County to comply with. Transportation bills typically are reviewed and recommended for positions by the Transportation, Water and Infrastructure Committee before going to the full Board of Supervisors. SB 286 is on the list of bills being tracked by the Committee, but the bill has not yet been brought to the Committee for a recommendation. Due to the timeliness of the bill's progress in the legislature, the District III Supervisor wishes to bring the bill directly to the Board of Supervisors for a support position. SB 286 is consistent with the County's adopted transportation legislative platform, which includes the goal of streamlining the delivery of transportation projects. The bill would hasten the allocation of the bond funds to the County, thereby helping to deliver projects more quickly. Exhibit A is a draft letter for support, recommended for the Chair's signature. Exhibit B is the full text of SB 286. The Board of Supervisors Contra Costa John Cullen County Administration Building Clerk of theeBoard 651 Pine Street,Room 106 and Martinez,California 94553 Count County Administrator Y (925)335-1904 John Gioia, I"District Gayle B.Uiikema,2nd District Mary N.Piepho,3'd District Susan A.Bonilla,0'District _ Federal D.Glover,5" District April 30, 2007 Senator Tom Torlakson State Capitol P.O. Box 942849 Sacramento, CA 94249-0011 RE: SB 286 (Lowenthal, Dutton): Allocation of Prop 1 B Local Street and Road Funds — SUPPORT Dear Senator Torlakson: .Contra Costa County Board of Supervisors strongly supports SB 286, which defines an allocation schedule for the $2 billion included in Proposition 1 B as a direct allocation to cities and counties. We sincerely appreciate your recognition of the importance of funding local transportation projects and ensuring this funding was part of the Infrastructure Bond package. Specifically, SB 286 guarantees that every local agency will receive at least half of their Prop 1 B funds to spend in the next two fiscal years; the 2007-08 Proposition 42 "gap" year and 2008-09. This is extremely important because without significant funding in the 2007-08 Prop 42 "gap" year, cities and counties will not receive any monies for local streets and roads. SB 286 also provides that a county may receive up to the entire amount of its share of Prop 1 B funds in the next two fiscal years if the ability to spend the funds is demonstrated. Currently, it is estimated that Contra Costa County would receive approximately $24.5 million in direct funding from Prop 1 B for local transportation purposes. Contra Costa County intends to use most of these funds for road safety improvements at numerous locations throughout the County, including Vasco Road, which, as you know, has seen an alarming number of fatal accidents in recent years. Your efforts to help us improve Vasco Road are greatly appreciated, and SB 286 would hasten the allocation of funds that can be put towards improving Vasco and other County roads. SS 286 is flexible and allows local agencies to spend Prop 1 B monies based ars local, needs. It allows bond funds to be spent as quickly as needed, or the funds can be spread out over multiple years. Again, we support SB 286 and the much-needed investment it brings to our county for our local transportation needs. Cordially, M Chair, Board of Supervisors cc: Senator Alan Lowenthal Senator Robert Dutton Assembly Member Mark DeSaulnier Assembly Member Loni Hancock Assembly Member Guy Houston Members, Contra Costa Board of Supervisors Cathy Christian,Nielsen Merksamer Mark Watts, California Strategies AMENDED 1N SENATE APRIL 9, 2007 SENATE BILL No. 286 Introduced by Senator Du Senators Lowenthal and Dutton February 15, 2007 An act to amend Sections 8879.23 and 8879.28 of the Government Code, relating to transportation bonds, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 286, as amended, DtAto Lowenthal. Transportation bonds: implementation. Proposition 1B,approved by the voters at the November 2006,general election, enacts the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006, which authorizes the issuance of $19.925 billion of general obligation bonds for various transportation purposes,including$2 billion to be allocated by the Controller to cities and counties,by formula, for local street and road purposes, subject to appropriation by the Legislature. This bill would require the bond funds for local street and road purposes to be allocated by the Controller in 2 cycles that cover 4 years, with the 1 st cycle of payments to be made to eligible local agencies not later than January 1, 2008, and the 2nd cycle of payments to be made not later than January 1,2010,as specified.The bill would also require the Controller to use the population figures from the Department of Finance as of January 1, 2007, in making allocations to cities. The bill would require an applicant for these funds to submit a list of projects expected to be funded with bond funds to the Department of Finance, as specified, and to report various information to the Department of Finance. The bill would make other related changes. 98 SB 286 —2— This 2—This bill would declare that it is to take effect immediately as an urgency statute. Vote: /j. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. The people of the State of California do enact as follows: 1 SECTION 1. Section 8879.23 of the Government Code is 2 amended to read: 3 8879.23. The Highway Safety,Traffic Reduction,Air Quality, 4 and Port Security Fund of 2006 is hereby created in the State 5 Treasury. The Legislature intends that the proceeds of bonds 6 deposited in the fund shall be used to fund the mobility, safety, 7 and air quality improvements described in this article over the 8 course of the next decade. The proceeds of bonds issued and sold 9 pursuant to this chapter for the purposes specified in this chapter 10 shall be allocated in the following manner: 11 (a) (1) Four billion five hundred million dollars 12 ($4,500,000,000) shall be deposited in the Corridor Mobility 13 Improvement Account,which is hereby created in the fund.Funds 14 in the account shall be available to the California Transportation 15 Commission,upon appropriation in the annual Budget Bill by the 16 Legislature,for allocation for performance improvements on highly 17 congested travel corridors in California.Funds in the account shall 18 be used for performance improvements on the state highway 19 system,or major access routes to the state highway system on the 20 local road system that relieve congestion by expanding capacity, 21 enhancing operations, or otherwise improving travel times within 22 these high-congestion travel corridors, as identified by the 23 department and regional or local transportation agencies,pursuant 24 to the process in paragraph (3) or(4), as applicable. 25 (2) The commission shall develop and adopt guidelines, by 26 December 1, 2006, including regional programming targets, for 27 the program funded by this subdivision, and shall allocate funds 28 from the account to projects after reviewing project nominations 29 submitted by the Department of Transportation and by regional 30 transportation planning agencies or county transportation 31 commissions or authorities pursuant to paragraph(4). 32 (3) Subject to the guidelines adopted pursuant to paragraph(2), 33 the department shall nominate,by no later than January 15, 2007, 98 -3— SB 286 1 projects for the allocation of funds from the account on a statewide 2 basis. The department's nominations shall be geographically 3 balanced and shall reflect the department's assessment of a program 4 that best meets the policy objectives described in paragraph(1). 5 (4) Subject to the guidelines adopted pursuant to paragraph(2), 6 a regional transportation planning agency or county transportation 7 commission or authority responsible for preparing a regional 8 transportation improvement plan under Section 14527 may 9 nominate projects identified pursuant to paragraph (1) that best 10 meet the policy objectives described in that paragraph for funding 11 from the account. Projects nominated pursuant to this paragraph 12 shall be submitted to the commission for consideration for funding 13 by no later than January 15, 2007. 14 (5) All nominations to the California Transportation Commission 15 shall be accompanied by documentation regarding the quantitative 16 and qualitative measures validating each project's consistency 17 with the policy objectives described in paragraph(1).All projects 18 nominated to the commission for funds from this account shall be 19 included in a regional transportation plan. 20 (6) After review of the project nominations, and supporting 21 documentation, the commission, by no later than March 1, 2007, 22 shall adopt an initial program of projects to be funded from the 23 account. This program may be updated every two years in 24 conjunction with the biennial process for adoption of the state 25 transportation improvement program pursuant to guidelines adopted 26 by the commission.The inclusion of a project in the program shall 27 be based on a demonstration that the project meets all of the 28 following criteria: 29 (A) Is a high-priority project in the corridor as demonstrated by 30 either of the following: (i) its inclusion in the list of nominated 31 projects by both the department pursuant to paragraph(3)and the 32 regional transportation planning agency or county transportation 33 commission or authority,pursuant to paragraph(4);or(ii)if needed 34 to fully fund the project, the identification and commitment of 35 supplemental funding to the project from other state, local, or 36 federal funds. 37 (B) Can commence construction or implementation no later 38 than December 31, 2012. 39 (C) Improves mobility in a high-congestion corridor by 40 improving travel times or reducing the number of daily vehicle 98 SB 286 —4- 1 4-1 hours of delay, improves the connectivity of the state highway 2 system between rural, suburban,and urban areas,or improves the 3 operation or safety of a highway or road segment. 4 (D) Improves access to jobs,housing,markets,and commerce. 5 (7) Where competing projects offer similar mobility 6 improvements to a specific corridor,the commission shall consider 7 additional benefits when determining which project shall be 8 included in the program for funding. These benefits shall include, 9 but are not limited to, the following: 10 (A) A finding that the project provides quantifiable air quality 11 benefits. 12 (B) A finding that the project substantially increases the safety 13 for travelers in the corridor. 14 (8) In adopting a program for funding ,pursuant to this 15 subdivision,the commission shall make a finding that the program 16 is(i)geographically balanced,consistent with the geographic split 17 for funding described in Section 188 of the Streets and Highways 18 Code; (ii) provides mobility improvements in highly traveled or 19 highly congested corridors in all regions of California; and (iii) 20 targets bond proceeds in a manner that provides the increment of 21 funding necessary,when combined with other state,local or federal 22 funds, to provide the mobility benefit in the earliest possible 23 timeframe. 24 (9) The commission shall include in its annual report to the 25 Legislature,required by Section 14535,a summary of its activities 26 related to the administration of this program.The summary should, 27 at a minimum,include a description and the location of the projects 28 contained in the program, the amount of funds allocated to each 29 project,the status of each project,and a description of the mobility 30 improvements the program is achieving. 31 (b) One billion dollars($1,000,000,000)shall be made available, 32 upon appropriation in the annual Budget Bill by the Legislature, 33 to the department for improvements to State Route 99.Funds may 34 be used for safety, operational enhancements, rehabilitation, or 35 capacity improvements necessary to improve the State Route 99 36 corridor traversing approximately 400 miles of the central valley 37 of this state. 38 (c) Three billion one hundred million dollars($3,100,000,000) 39 shall be deposited in the California Ports Infrastructure, Security, 40 and Air Quality Improvement Account, which is hereby created 98 -5— SB 286 1 in the fund. The money in the account shall be available, upon 2 appropriation by the Legislature and subject to such conditions 3 and criteria as the Legislature may provide by statute, as follows: 4 (1) (A) Two billion dollars($2,000,000,000)shall be transferred 5 to the Trade Corridors Improvement Fund,which is hereby created. 6 The money in this fund shall be available, upon appropriation in 7 the annual Budget Bill by the Legislature and subject to such 8 conditions and criteria as the Legislature may provide by statute, 9 for allocation by the California Transportation Commission for 10 infrastructure improvements along federally designated "Trade 11 Corridors of National Significance" in this state or along other 12 corridors within this state that have a high volume of freight 13 movement, as determined by the commission. In determining 14 projects eligible for funding,the commission shall consult the trade 15 infrastructure and goods movement plan submitted to the 16 commission by the Secretary of Business, Transportation and 17 Housing and the Secretary for Environmental Protection. No 18 moneys shall be allocated from this fund until the report is 19 submitted to the commission for its consideration, provided the 20 report is submitted no later than January 1,2007.The commission 21 shall also consult trade infrastructure and goods movement plans 22 adopted by regional transportation planning agencies, adopted 23 regional transportation plans required by state and federal law,and 24 the statewide port master plan prepared by the California Marine 25 and Intermodal Transportation System Advisory Council 26 (Cal-MITSAC) pursuant to Section 1760 of the Harbors and 27 Navigation Code,when determining eligible projects for funding. 28 Eligible projects for these funds include,but are not limited to, all 29 of the following: 30 (i) Highway capacity improvements and operational 31 improvements to more efficiently accommodate the movement of 32 freight,particularly for ingress and egress to and from the state's 33 seaports, including navigable inland waterways used to transport 34 freight between seaports, land ports of entry, and airports, and to 35 relieve traffic congestion along major trade or goods movement 36 corridors. 37 (ii) Freight rail system improvements to enhance the ability to 38 move goods from seaports, land ports of entry, and airports to 39 warehousing and distribution centers throughout California, 40 including projects that separate rail lines from highway or local 98 SB 286 —6— I 6-1 road traffic, improve freight rail mobility through mountainous 2 regions, relocate rail switching yards, and other projects that 3 improve the efficiency and capacity of the rail freight system. 4 (iii) Projects to enhance the capacity and efficiency of ports. 5 (iv) Truck corridor improvements, including dedicated truck 6 facilities or truck toll facilities. 7 (v) Border access improvements that enhance goods movement 8 between California and Mexico and that maximize the state's 9 ability to access coordinated border infrastructure funds made 10 available to the state by federal law. 11 (vi) Surface transportation improvements to facilitate the 12 movement of goods to and from the state's airports. 13 (B) The commission shall allocate funds for trade infrastructure 14 improvements from the account in a manner that(i)addresses the 15 state's most urgent needs, (ii) balances the demands of various 16 ports(between large and small ports, as well as between seaports, 17 airports, and land ports of entry), (iii) provides reasonable 18 geographic balance between the state's regions, and (iv) places 19 emphasis on projects that improve trade corridor mobility while 20 reducing emissions of diesel particulate and other pollutant 21 emissions. In addition, the commission shall also consider the 22 following factors when allocating these funds: 23 (i) "Velocity," which means the speed by which large cargo 24 would travel from the port through the distribution system. 25 (ii) "Throughput,"which means the volume of cargo that would 26 move from the port through the distribution system. 27 (iii) "Reliability," which means a reasonably consistent and 28 predictable amount of time for cargo to travel from one point to 29 another on any given day or at any given time in California. 30 (iv) "Congestion reduction," which means the reduction in 31 recurrent daily hours of delay to be achieved. 32 (C) The commission shall allocate funds made available by this 33 paragraph to projects that have identified and committed 34 supplemental funding from appropriate local, federal or private 35 sources. The commission shall determine the appropriate amount 36 of supplemental funding each project should have to be eligible 37 for moneys from this fund based on a project-by-project review 38 and an assessment of the project's benefit to the state and the 39 program. Except for border access improvements described in 40 clause(v)of subparagraph(A),improvements funded with moneys 98 -7— SB 286 1 from this fund shall have supplemental funding that is at least equal 2 to the amount of the contribution from the fund. The commission 3 may give priority for funding to projects with higher levels of 4 committed supplemental funding. 5 (D) The commission shall include in its annual report to the 6 Legislature,required by Section 14535,a summary of its activities 7 related to the administration of this program.The summary should, 8 at a minimum,include a description and the location of the projects 9 contained in the program, the amount of funds allocated to each 10 project,the status of each project,and a description of the mobility 11 and air quality improvements the program is achieving. 12 (2) One billion dollars($1,000,000,000)shall be made available, 13 upon appropriation by the Legislature and subject to such 14 conditions and criteria contained in a statute enacted by the 15 Legislature, to the State Air Resources Board foremission emission 16 reductions, not otherwise required by law or regulation, from 17 activities related to the movement of freight along California's 18 trade corridors. Funds made available by this paragraph are 19 intended to supplement existing funds used to finance strategies 20 and public benefit projects that reduce emissions and improve air 21 quality in trade corridors commencing at the state's airports, 22 seaports, and land ports of entry. 23 (3) One hundred million dollars ($100,000,000) shall be 24 available, upon appropriation by the Legislature, to the Office of 25 Emergency Services to be allocated, as grants, for port, harbor, 26 and ferry terminal security improvements.Eligible applicants shall 27 be publicly owned ports,harbors,and ferryboat and ferry terminal 28 operators,which may submit applications for projects that include, 29 but are not limited to, the following: 30 (A) Video surveillance equipment. 31 (B) Explosives detection technology,including,but not limited 32 to,X-ray devices. 33 (C) Cargo scanners. 34 (D) Radiation monitors. 35 (E) Thermal protective equipment. 36 (F) Site identification instruments capable of providing a 37 fingerprint for a broad inventory of chemical agents. 38 (G) Other devices capable of detecting weapons of mass 39 destruction using chemical,biological,or other similar substances. 40 (H) Other security equipment to assist in any of the following: 98 SB 286 —8- 1 8-1 (i) Screening of incoming vessels, trucks, and incoming or 2 outbound cargo. 3 (ii) Monitoring the physical perimeters of harbors, ports, and 4 ferry terminals. 5 (iii) Providing or augmenting onsite emergency response 6 capability. 7 (I) Overweight cargo detection equipment, including, but not 8 limited to, intermodal crane scales and truck weight scales. 9 (J) Developing disaster preparedness or emergency response 10 plans. 11 The Office of Emergency Services shall report to the Legislature 12 on March 1 of each year on the manner in which the funds available 13 pursuant to this paragraph were expended for that fiscal year. 14 (d) Two hundred million dollars ($200,000,000) shall be 15 available, upon appropriation by the Legislature, for schoolbus 16 retrofit and replacement to reduce air pollution and to reduce 17 children's exposure to diesel exhaust. 18 (e) Two billion dollars ($2,000,000,000) shall be available for 19 projects in the state transportation improvement program, to 20 augment funds otherwise available for this purpose from other 21 sources.The funds provided by this subdivision shall be deposited 22 in the Transportation Facilities Account which is hereby created 23 in the fund, and shall be available, upon appropriation by the 24 Legislature, to the Department of Transportation, as allocated by 25 the California Transportation Commission in the same manner as 26 funds allocated for those projects under existing law. 27 (f) (1) Four billion dollars($4,000,000,000)shall be deposited 28 in the Public Transportation Modernization, Improvement, and 29 Service Enhancement Account, which is hereby created in the 30 fund. Funds in the account shall be made available, upon 31 appropriation by the Legislature, to the Department of 32 Transportation for intercity rail projects and to commuter or urban 33 rail operators, bus operators, waterborne transit operators, and 34 other transit operators in California for rehabilitation, safety or 35 modernization.improvements, capital service enhancements or 36 expansions, new capital projects,bus rapid transit improvements, 37 or for rolling stock procurement,rehabilitation, or replacement. 38 (2) Of the funds made available in paragraph(1), four hundred 39 million dollars ($400,000,000) shall be available, upon 40 appropriation by the Legislature, to the department for intercity 98 -9— SB 286 1 rail improvements, of which one hundred twenty-five million 2 dollars ($125,000,000) shall be used for the procurement of 3 additional intercity railcars and locomotives. 4 (3) Of the funds remaining after the allocations in paragraph 5 (2),50 percent shall be distributed to the Controller,for allocation 6 to eligible agencies using the formula in Section 99314 of the 7 Public Utilities Code, and 50 percent shall be distributed to the 8 Controller,for allocation to eligible agencies using the formula in 9 Section 99313 of the Public Utilities Code,subject to the provisions 10 governing funds allocated under those sections. 11 (g) One billion dollars ($1,000,000,000) shall be deposited in 12 the State-Local Partnership Program Account, which is hereby 13 created in the fund. The funds shall be available, upon 14 appropriation by the Legislature and subject to such conditions 15 and criteria as the Legislature may provide by statute,for allocation 16 by the California Transportation Commission over a five-year 17 period to eligible transportation projects nominated by an applicant 18 transportation agency. A dollar for dollar match of local funds 19 shall be required for an applicant transportation agency to receive 20 state funds under this program. 21 (h) One billion dollars ($1,000,000,000) shall be deposited in 22 the Transit System Safety, Security, and Disaster Response 23 Account,which is hereby created in the fund.Funds in the account 24 shall be made available,upon appropriation by the Legislature and 25 subject to such conditions and criteria as the Legislature may 26 provide by statute, for capital projects that provide increased 27 protection against a security and safety threat, and for capital 28 expenditures to increase the capacity of transit operators,including 29 waterborne transit operators, to develop disaster response 30 transportation systems that can move people,goods,and emergency 31 personnel and equipment in the aftermath of a disaster impairing 32 the mobility of goods,people, and equipment. 33 (i) One hundred twenty-five million dollars ($125,000,000) 34 shall be deposited in the Local Bridge Seismic Retrofit Account, 35 which is hereby created in the fund.The funds in the account shall 36 be used,upon appropriation by the Legislature,to provide the 11.5 37 percent required match for federal Highway Bridge Replacement 38 and Repair funds available to the state for seismic work on local 39 bridges, ramps, and overpasses, as identified by the Department 40 of Transportation. 98 SB 286 _10- 1 0) (1) Two hundred fifty million dollars ($250,000,000) shall 2 be deposited in the Highway-Railroad Crossing Safety Account, 3 which is hereby created in the fund. Funds in the account shall be 4 available,upon appropriation by the Legislature,to the Department 5 of Transportation for the completion of high-priority grade 6 separation and railroad crossing safety improvements. Funds in 7 the account shall be made available for allocation pursuant to the 8 process established in Chapter 10(commencing with Section 2450) 9 of Division 3 of the Streets and Highways Code, except that a 10 dollar for dollar match of nonstate funds shall be provided for each 11 project,and the limitation on maximum project cost in subdivision 12 (g) of Section 2454 of the Streets and Highways Code shall not 13 be applicable to projects funded with these funds. 14 (2) Notwithstanding the funding allocation process described 15 in paragraph(1),in consultation with the department and the Public 16 Utilities Commission, the California Transportation Commission 17 shall allocate one hundred million dollars ($100,000,000) of the 18 funds in the account to high-priority railroad crossing 19 improvements, including grade separation projects, that are not 20 part of the process established in Chapter 10 (commencing with 21 Section 2450) of Division 3 of the Streets and Highways Code. 22 The allocation of funds under this paragraph shall be made in 23 consultation and coordination with the High-Speed Rail Authority 24 created pursuant to Division 19.5 (commencing with Section 25 185000) of the Public Utilities Code. 26 (k) (1) Seven hundred fifty million dollars($750,000,000)shall 27 be deposited in the Highway Safety, Rehabilitation, and 28 Preservation Account, which is hereby created in the fund. Funds 29 in the account shall be available, upon appropriation by the 30 Legislature, to the Department of Transportation, as allocated by 31 the California Transportation Commission,for the purposes of the 32 state highway operation and protection program as described in 33 Section 14526.5. 34 (2) The department shall develop a program for distribution of 35 two hundred-ate fifty million dollars ($250,000,000) from the 36 funds identified in paragraph (1) to fund traffic light 37 synchronization projects or other technology-based improvements 38 to improve safety, operations and the effective capacity of local 39 streets and roads. 98 SB 286 1 (1) (1) Two billion dollars ($2,000,000,000) shall be deposited 2 in the Local Street and Road Improvement, Congestion Relief, 3 and Traffic Safety Account of 2006, which is hereby created in 4 the fund. The proceeds of bonds deposited into that account shall 5 be available, upon appropriation by the Legislature, for the 6 purposes specified in this subdivision, to the Controller for 7 administration and allocation in the fiscal year in which the bonds 8 are issued and sold. The Controller shall allocate the funds to 9 eligible local agencies in two cycles that cover four years,in order 10 to allow each eligible local agency to spend the funds in two 11 periods of two years each. The Controller shall allocate at least 12 one-half of each allocation amount in the first cycle of payments, 13 which shall be made no later than January 1, 2008, except that 14 each city shall receive at least four hundred thousand dollars 15 ($400,000), as described in subparagraph(B) of paragraph(2). If 16 an eligible local agency is able to demonstrate that more than 17 one-half of its share of funds under this subdivision is able to be 18 spent on eligible projects in the first two-year cycle,the Controller 19 shall allocate up to the full amount to the local agency. The 20 Controller shall allocate the remaining portion of an eligible local 21 agency's share of funds under this subdivision in the second cycle 22 of payments, which shall be made no later than January 1, 2010. 23 The money in the account, and any interest or other return on 24 money in the account, shall be allocated in the following manner: 25 (A) Fifty percent to the counties, including a city and county, 26 in accordance with the following formulas: 27 (i) Seventy-five percent of the funds payable under this 28 subparagraph shall be apportioned among the counties in the 29 proportion that the number of fee-paid and exempt vehicles that 30 are registered in the county bears to the number of fee-paid and 31 exempt vehicles registered in the state. 32 (ii) Twenty-five percent of the funds payable under this 33 subparagraph shall be apportioned among the counties in the 34 proportion that the number of miles of maintained county roads 35 in each county bears to the total number of miles of maintained 36 county roads in the state. For the purposes of apportioning funds 37 under this clause, any roads within the boundaries of a city and 38 county that are not state highways shall be deemed to be county 39 roads. 98 SB 286 —12- 1 12-1 (B) Fifty percent to the cities, including a city and county, 2 apportioned among the cities in the proportion that the total 3 population of the city bears to the total population of all the cities 4 in the state, provided, however, that the Controller shall allocate 5 a minimum of four hundred thousand dollars ($400,000) to each 6 city,pursuant to this subparagraph. 7 (2) Funds received under this subdivision shall be deposited as 8 follows in order to avoid the commingling of those funds with 9 other local funds: 10 (A) In the case of a city,into the city account that is designated 11 for the receipt of state funds allocated for local streets and roads. 12 (B) In the case of an eligible county, into the county road fund. 13 (C) In the case of a city and county, into a local account that is 14 designated for the receipt of state funds allocated for local streets 15 and roads. 16 (3) For the purpose of allocating funds under this subdivision 17 to cities and a city and county, the Controller shall use the 18 population estimates prepared by the Demographic Research Unit 19 of the Department of Finance as of January 1,2007.For a city that 20 incorporated after January 1, 1998, that does not appear on the 21 most recent population estimates prepared by the Demographic 22 Research Unit,the Controller shall use the population determined 23 for that city under Section 11005.3 of the Revenue and Taxation 24 Code. 25 (4) Funds apportioned to a city,county,or city and county under 26 this subdivision shall be used for improvements to transportation 27 facilities that will assist in reducing local traffic congestion and 28 further deterioration,improving traffic flows,or increasing traffic 29 safety that may include,but not be limited to, street and highway 30 pavement maintenance, rehabilitation, installation, construction 31 and reconstruction of necessary associated facilities such as 32 drainage and traffic control devices, or the maintenance, 33 rehabilitation, installation, construction and reconstruction of 34 facilities that expand ridership on transit systems, safety projects 35 to reduce fatalities, or as a local match to obtain state or federal 36 transportation funds for similar purposes. Projects to be funded 37 pursuant to this subdivision shall be consistent with the 38 requirements applicable to funds subject to Section I ofArticle'WX 39 of the California Constitution or shall be other transit projects 98 13— SB 286 1 consistent with this paragraph, but may not include the funding 2 of transit operating costs. 3 (S) A city, county, or city and county shall submit to the 4 Department of Finance, upon appropriation of bond funds by the 5 Legislature, a list of projects expected to be funded with bond 6 funds pursuant to an adopted city or county budget. The list shall 7 not limit the flexibility of the applicant to fund projects in 8 accordance with local needs and priorities consistent with 9 paragraph (4) of subdivision (1) of Section 8879.23 of the 10 Government Code.A 11projects funded with these bond funds shall 11 be included within the city, county, or city and county budget that 12 is adopted by the applicable city council or board of supervisors 13 at a regular public meeting. 14 (6) A city, county, or city and county shall submit documentation 15 of expenditure of bond funds made available under this subdivision 16 to the Department of Finance, including the name of each project, 17 the location, the amount of the expenditure, and the completion 18 date and estimated useful life. The documentation shall be made 19 available at the end of each fiscal year until the bond funds are 20 accounted for. The information provided shall be posted on the 21 Internet Web site of the Department of Finance. 22 f-9 23 (7) At the conclusion of each fiscal year during which a city or 24 county expends the funds it has received under this subdivision, 25 the Controller may verify the city's or county's compliance with 26 paragraph (4). Any city or county that has not complied with 27 paragraph (4) shall reimburse the state for the funds it received 28 during that fiscal year.Any funds withheld or returned as a result 29 of a failure to comply with paragraph (4) shall be reallocated to 30 the other counties and cities whose expenditures are in compliance. 31 SEC. 2. Section 8879.28 of the Government Code is amended 32 to read: 33 8879.28. Upon request of the board stating that funds are 34 needed for purposes of this chapter,the committee shall determine 35 whether or not it is necessary or desirable to issue bonds authorized 36 pursuant to this chapter in order to carry out the actions specified 37 in Section 8879.23, and, if so, the amount of bonds to be issued 38 and sold. Successive issues of bonds may be authorized and sold 39 to carry out those actions progressively,and are not required to be 40 sold at any one time. Bonds may bear interest subject to federal 98 SB 286 —14- 1 14-1 income tax. For purposes of this section, the committee shall 2 consider the request of the Controller relative to issuance of bonds 3 authorized pursuant to subdivision(l) of Section 8879.23. 4 SEC. 3. This act is an urgency statute necessary for the 5 immediate preservation of the public peace, health, or safety within 6 the meaning of Article IV of the Constitution and shall go into 7 immediate effect. The facts constituting the necessity are: 8 In order to ensure that the funds made available by this act are 9 appropriated in the Budget Act of 2007, it is necessary that this 10 act take effect immediately. O 98