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HomeMy WebLinkAboutItem 6.1 MTC Proposed Legislation Transport Tax 30 AGENDA STATEMENT CITY COUNCIL MEETING DATE: November 12 , 1985 SUBJECT: Metropolitan Transportation Commission Proposed Legislation to Authorize a County Transportation Tax . EXHIBITS ATTACHED: Letter from Commissioner Gill dated October 9 , 1985 and Attachments RECOMMENDATION: Review proposed legislation and direct Staff to forward appropriate comments to MTC with respect to the City' s position. FINANCIAL STATEMENT: Undetermined at this time, this legislation could possibly facilitate the funding of regional transit and roadway improvements in the future. DESCRIPTION: The City has received a letter from Commissioner Valance Gill of the Metropolitan Transportation Commission inviting the City to comment on the proposed County Transportation Tax legislation which has been drafted by the Metropolitan Transportation Commission for consideration by the State Legislature. The proposed legislation would enable any County in the Bay Area to place before the voters a measure authorizing additional taxes for transportation. The draft proposed legislation provides for a transportation sales tax . However , alternative funding sources including sales tax on motor vehicle fuel, motor vehicle fuel tax, or a vehicle license fee surcharge are also being considered by the Commission. As indicated in Commissioner Gill ' s letter , the proposed legislation also would require the development of a County Transportation expenditure plan which would be considered as part of any election. The development of this plan would have to be agreed upon by the County Board of Supervisors, the Mayor ' s Conference, as well as participation by MTC and transit operators . The plan would be voted upon by the voters in the County in conjunction with any tax that was proposed. The plan would specify the projects that are to be funded by the tax, the amount and duration of the tax, and the designation of either MTC or the creation of a County Transportation Authority to administer the tax . ISSUES : Staff believes that the following issues should be considered by the City Council : 1 . Should the City support the proposed legislation, in order to enable voters of Alameda County to vote upon a tax for transit and highway projects . 2 . What revenue source should be included in the draft legislation. Of the four alternative revenue sources identified by MTC, sales tax is the only source, which is not limited to residents who drive motor vehicles . Those individuals who utilize public transit and not motor vehicles would also contribute their fair share toward transportation improvements , if sales tax was selected as the funding source to be included in the proposed legislation. 3 . Should MTC be chosen to administer the proceeds of the tax or should a new County Transportation Authority be created to administer the tax? If MTC was selected to administer the plan it could only divert 0 . 3% of the tax proceeds for administration as opposed to 0 . 6% of the proceeds for a new County Transportation Authority. As indicated in the attached Public Hearing Schedule, several additional public hearings will be held during the months of November and December If the legislation that is proposed is approved by the Metropolitan Transportation Commission, it will be forwarded to the State Legislature for its consideration. It is the Staff ' s recommendation that the City Council review the proposed legislation and direct Staff to send the City' s comments. ----------------------------------------------------------------- ITEM NO. COPIES TO: MTC METROPOLITAN TRANSPORTATION C O M M I S S I O N October 9, 1985 METROCENTER Mr. Peter W. Snyder 101 8TH STREET Mayor OAKLAND,CA 94607 (415)464-7700 C ty of Dublin Alameda County 11497 S i l ve rga to Drive JOSEPH P.BORT Dublin, CA 94568 VALANCE GILL Contra Costa County ROBERT 1.SCHRODER Dear Peter: Chair STEVE WEIR The Metropolitan Transportation Commission is considering legislation which if Marin County enacted would enable any county in the Bay Area to place before the voters a ROBERT B.STOCKWELL measure for additional taxes for transportation. The Commission will be Napa County holding four hearings throughout the region on the proposed legislation. A KATHLEEN McCULLOUGH schedule of hearings and a draft of the proposed legislation, questions and San Francisco— answers, and a summary of alternative tax sources are attached. City and County DORIS W.KAHN Our objective is to have the necessary legislation i n place so that an Vice Chair QUENTIN L.KOPP election for a tax may be held as early as November of 1986 in any county San Mateo County Where there is a consensus on how to spend additional local transportation JANE BAKER revenues. JOHN M.WARD The draft of the proposed legislation provides for a transportation sales Santa Clara County tax. Other taxes are to be considered and information on these taxes will be ROD DIRIDON provided at the public hearings. The Commission will decide in December which ROY E.LAVE tax to recommend and the final form of its legislative proposal . Solano County WILLIAM JENKINS The draft of the proposed legislation also includes the following provisions: Sonoma County WILLIAM R.LUCIUS 1 . It provides for the development of a county transportation Association of expenditures plan which would be the basis for an election. The Bay Area Governments process forte development of the plan would have to be agreed to RALPH C.BOLIN by both the Board of Supervisors and the mayors conference and S.F.Bay d Development would include the participation of both MTC and the transit and Development Commission operators. MTC could provide staff assistance if requested. EARL P.MILLS State Business, 2. The county transportation expenditure plan would include: Transportation and Housing Agency BURCH BACHTOLD the projects (capital , maintenance, repair, or operating) to U.S.Department be funded by the tax. of Transportation - ROBERTE.MAYER the amount and duration of the tax and any bonding provisions. Executive Director either the designation of MTC to impose and administer the tax LAWRENCE D.DAHMS and the composition of a County advisory committee to oversee the MTC allocations or the recommendation for the voters to Deputy Executive Director create a County Transportation Authority with a specified WILLIAM F.HEIN composition which would impose and administer the tax. - 2 - 3: Once developed, the transportation expenditure plan would have to be approved by WC with regard to its consistency with the Regional Transportation Plan and the reasonableness of the funding estimates. 4. Following endorsement by MTC the plan would have to be approved by: the Board of Supervisors the majority of the cities in the county cities representing a majority of the population in the county 5. After receiving the approvals above, the transportation expenditure plan would become effective with a majority vote in the county. The Board of Supervisors would be responsible for putting the issue on the ballot. 6. If MTC is chosen to impose and administer the proceeds from the tax, the proposed legislation: provides for an advisory committee to be determined by the expenditure plan to guide the allocations of funds and to endorse any amendments (see No. 8) provides that MTC must administer the funds in accordance with the county transportation expenditure plan limits the amount of funds MTC .can use to administer the plan to 0.3 percent of the tax proceeds. 7. If a County Transportation Authority is recommended to impose and administer the tax, the proposed legislation: provides for the creation of the agency upon a successful election for the expenditure plan in the county provides for the powers and functions of the authority provides that the authority must allocate the funds in accordance with the county transportation expenditure plan limits the amount of funds for administration to 0.6 percent of the proceeds (same as the Santa Clara County Authority) . 8. The transportation expenditure plan could only be amended to account for the use of additional federal , state and local funds; to account for unexpected revenue fluctuations; or to take into consideration unforeseen circumstances. Any amendment would require the same approvals as in No. 3 and 4 above. I believe this legislation could be very important to the region because it gives each county a funding option to consider when examining their transportation needs. It is important that we reach a consensus on its content; therefore, I would appreciate hearing any comments you may have. Sine , al'ance Gill MTC Commissioner WFH/kb (1498Z) ' Proposed County Transportation Tax Legislation Schedule Public Hearing Schedule City Location Date/Time Walnut Creek City Hall Oct. 17 (Thurs.) 1 :30-4:30 p.m. San Rafael City Hall Oct. 31 (Thurs.) 1 :30-4:30 p.m. San Francisco City Hall Nov. 14 (Thurs. ) 1 :30-4:30 p.m. Oakland Bart Board Room Nov. 21 (Thurs.) 7:00-10:00 p.m. Presentation of draft proposed legislation to LPAC/TFC for approval Dec. 11 Final proposed legislation to Commission for approval Dec. 18 Questions and Answers Regarding Proposed Legislation to Authorize A County Transportation Tax Metropolitan Transportation Commission September, 1985 What is the intent of the proposed legislation? o The intent of the proposed legislation is to permit any county within the nine county Bay Area to place a measure before the voters in that county to to approve by majority vote the levying of an additional local tax for transportation programs within the county. Why is this legislation needed? o The state and federal governments appear to be reducing the level of their financial support for highways and transit. o Authorization by the State Legislature is required in order for a county to seek approval by a simple majority of the voters of a local transportation tax. o Some counties are exploring the need for, and potential to secure, additional local revenues . For example, Santa Clara County sponsored legislation which permitted the voters in that county to approve an additional 1/2¢ sales tax for construction of three state highways. Could a revenue source other than a sales tax be considered? o Yes, other sources will be considered and information on these sources is attached. o The Commission will recommend the sources for the proposed legislation in December after hearing from the public regarding the alternatives. Page 2 — Proposed Legislation What could the funds be used for? o The funds could be used for transit, state highway or local street and road projects. o Capital , maintenance, repair and operation are all eligible costs. o The transportation projects to be funded shall be set forth in the County Transportation Expenditure Plan. How would the County Transportation Expenditure Plan be developed? o The process for developing a County Transportation Expenditure Plan would have to be agreed to by the County Board of Supervisors and the Conference of Mayors. o Any process would be acceptable as long as it provides for participation by representatives of the cities, the county, and the transit agencies, Caltrans, MTC, and such other agencies that the Board and Mayors deem necessary. What would the County Transportation Expenditure Plan include? o The expenditure plan would include a list, in priority order, of projects to be funded by the proposed tax. It must also specify the extent to which reasonable estimates of existing federal , state and local funds are planned to be used to help finance the expenditure plan projects. o The expenditure plan would also include: a) A recommendation on the amount and duration of the proposed tax. b) A recommendation on whether or not bonding authority is needed. c) A recommendation on whether MTC should administer the tax or whether a County Transportation Authority should be created to administer the tax. Page 3 - Proposed Legislation o If the recommendation is for MTC to administer the tax, the expenditure plan will recommend the composition of an Advisory Committee to assist MTC. o If the recommendation is for a new County Transportation Authority, the expenditure plan will recommend the composition of the Authority. How would the County Transportation Expenditure Plan be approved before it is submitted to the voters? o The expenditure plan would be subject to a public hearing and would have to be approved by MTC for consistency with the Regional Transportation Plan and for the reasonableness of the fund estimates. o Following endorsement by MTC, the expenditure plan would then have to be approved by: o The Board of Supervisors o The majority of the cities o Cities representing a majority of the population o Following these approvals, the Board of Supervisors would be responsible for putting the measure on the ballot. What approval is required by the voters? o The intention of the proposed legislation is to allow a tax to be implemented if approved by a majority of the voters voting on the measure. Can the County Transportation Expenditure Plan be amended once it is approved? o Yes, the expenditure plan could be changed if it was necessary to provide for unexpected revenue fluctuations or unforseen circumstances. o No change could be made to any project without the project sponsor's approval . - - - Page 4 — Proposed Legislation o Any change would have to be approved by MTC similar to the original expenditure plan and approved by the Board of Supervisors, the majority of cities and the cities representing a majority of the population. If the County Transportation Expenditure Plan designates MTC to administer the expenditure plan, what would be MTC's responsibilities? o MTC would administer the tax proceeds in accordance with the expenditure plan. o An Advisory Committee comprised of local officials as set forth in the expenditure plan would advise MTC on its allocations and would be responsible for approving any amendments to be made to the expenditure plan, subject to the approval process for amendments as noted above. If a County Transportation Authority was called for in the County Transportation Expenditure Plan, when would it come into being and what would its responsibilities be? o The Authority would come into being when the voters approve the tax measure. o The Authority would be responsible for administering the tax in accordance with the expenditure plan. o The Authority would be given the governmental powers necessary to administer the tax; i .e. the ability to hire staff, contract for services, adopt budgets, etc. o The Authority would be responsible for approving any amendments to the expenditure plan, subject to the approval process for amendments as noted above. Are there limitations on the amount of funds that can be used for administration? o Yes, the intention is to assure the legislature and the voters that the funds will be used for projects. o The proposed legislation provides for no more than 0.6% of the tax proceeds for administration by a new authority. This amount is the same as provided in the legislation creating the Santa Clara County Traffic Authority. r Page 5 - Proposed Legislation o If MTC administered the expenditure plan, the proposed legislation would limit administration to 0.3% of the tax proceeds. The lesser amount is proposed because MTC already has allocation and accounting functions in place. What agency would implement the projects in the County Transportation Expenditure Plan? o The expenditure plan would designate the agencies to implement the projects in the plan. o The projects would be implemented by existing agencies which are already responsible for implementing projects within the county -- i .e. , cities or the county, existing transit operators, and Caltrans. o While the proposed legislation would authorize the creation of a new agency to administer the tax, no new implementing agencies would be created by this proposed legislation. Could two or more counties join together to implement a joint project? o The county or counties desiring to use new sales tax revenues for the project would have to detail the joint project and method of implementation in its County Transportation Expenditure Plan. WFH/kb Attachment (1486Z) - - ALTERNATIVE COUNTYWIDE TRANSPORTATION FUNDING SOURCES Four alternative countywide revenue sources are suggested to be considered for funding transportation system improvements. . Sales Tax — The sales tax in California is currently 6 percent, with 4 3/4 percent of this going to the state and 1 1/4 percent to local government. In addition, 4 counties in the Bay Area have a 1/2 cent sales tax for transit. Santa Clara County has a 1/2 cent sales tax for transit and a 1/2 cent sales tax for highway improvements. Sales Tax on Motor Vehicle Fuel — Motor Vehicle fuel is subject to the sales tax. An additional sales tax increase could be imposed only on motor vehicle fuel . Motor Vehicle Fuel Tax (Gas Tax) — The gas tax is currently 18 cents -- 9 cents for the state and 9 cents for the federal trust fund. State gas tax revenues can only be used for highways and streets and roads in California and where approved by the voters (Proposition 5) for rail transit facilities (not including vehicles) . In the Bay Area, 6 urban counties are eligible to use Prop. 5 funds for transit; Sonoma, Solano, and Napa counties are not eligible. . Vehicle License Fee Surcharge — The existing 2% in—lieu fee that is paid when a vehicle is registered could be increased. The fee is based on the depreciated value of the vehicle and is collected by the state but returned to local government. Because of Proposition 13 limitations, a property tax increase beyond the existing 1% limit would not be possible. Brief Comparison of Revenue Sources Table 1 compares the revenues that are estimated to be made available in each county from implementing the following tax increases: 1/2 Percent Sales Tax 1 Percent Sales Tax on Motor Vehicle Fuel 1 Cent Gas Tax 1/4 Percent Vehicle License Fee These "marginal " rates provide a useful comparison of the revenue generation capability of each source. Any decision as to which revenue source to select needs to take into consideration the amount of revenue that would be generated, and the magnitude of the tax increase that would be necessary to raise that amount of revenue. In order to facilitate comparison of revenue options, a 112 cent sales tax is used as a "baseline. " Estimates of the amount of revenues that would be generated from implementing a 1/2 cent sales tax in each county and the tax increases that would be necessary to raise an estimated equivalent amount of revenues using the other 3 revenue sources are indicated in Table 2. TABLE 1 REVENUE GENERATION FROM ALTERNATIVE FUNDING SOURCES ($ millions) 1/2 Cent 1 Percent 1 Cent/Gallon 1/4 Percent Sales Motor Vehicle Motor Vehicle Vehicle License County Tax Fuel Sales Tax Fuel Tax Fee Surcharge Alameda 49.0 5.7 4.9 7.1 Contra Costa 26.5 4.3 3.7 4.7 Marin 9.3 .9 .8 1 .6 Napa 3.5 .5 .4 .7 San Francisco 35.8 2.6 2.3 3.4 San Mateo 26.6 3.5 3.0 4.4 Santa Clara 75.3 7.4 6.4 9.1 Solano 7.9 1 .4 1 .3 1 .6 Sonoma 13.2 1_7 1 .5 2_3 9-County Total 247.1 28.0 24.3 34.9 TABLE 2 TAX RATES REQUIRED TO GENERATE Amount of THE REVENUE EQUIVALENT OF 1/2 CENT SALES TAX Revenue from 112 Cent Motor Vehicle Motor Vehicle Vehicle License Sales Tax Fuel Tax Fuel Sales Tax Fee Surcharge County ($ millions) (cents/gallon) (percent) (percent) Alameda 49.0 10.0 8.6 1 .7 Contra Costa 26.5 7.2 6.2 1 .4 Marin 9.3 11 .6 10.3 1 .5 Napa 3.5 8.8 7.0 1 .3 San Francisco 35.8 15.5 13.8 2.6 San Mateo 26.6 8.9 7.6 1 .5 Santa Clara 75.3 11 .8 10.2 2.1 Solano 7.9 6.0 5.6 1 .2 Sonoma 13.2 8.8 7.8 1 .4 0105d AH:b r. Approved for public distribution and hearings by the Legislation and Public Affairs Commitee and Transportation DRAFT Finance Committee on Sept. 11, 1985. The People of the State of California do enact as follows: SECTION 1 , Division 12.5 (commencing with Section 131000) is added to the Public Utilities Code, to read: Division 12.5 County Traffic and Transportation Funding in the Nine-County San Francisco Bay Area Chapter 1 . Definitions and General Provisions 131000. This chapter shall be known and may be cited as the Bay Area County Traffic and Transportation Funding Act. 131001 . The Legislature finds and declares all of the following: (a) That in the nine-county San Francisco Bay area, traffic and transportation improvements are an immediate high priority needed to resolve the Bay area's serious traffic congestion and transit mobility problems that threaten the economic viability of the area and adversely impact the quality of life therein. (b) That in the nine-county San Francisco Bay area, the Metropolitan Transportation Commission is responsible for regional transportation planning and programming. (c) That the Metropolitan Transportation Commission and the cities and counties within the nine-county San Francisco Bay area wish to collectively develop and implement on county by county basis near-term local traffic and transportation projects that responsibly and adequately deal with current and anticipated traffic congestion and transit mobility problems. (d) That in order to proceed in a expeditious manner with the development and implementation of such projects, each of the nine counties in the San Francisco Bay area should be provided the opportunity to review and determine whether there is a need for the development and implementation of a county transportation expenditure plan that goes significantly beyond current federal , state and local funding. (e) Therefore, it is in the public interest to allow the voters in any county in the nine county San Francisco Bay area to either create a County Transportation Authority, or to authorize the Metropolitan Transportation Commission, to implement a retail transactions and use tax for the purpose of funding a local transportation expenditure plan as set forth in this division if such county develops a county transportation plan showing a need for the proceeds from such a tax. - DRAFT - SEPTEMBER 11 . 1985 - PAGE NO. 1 DRAFT 131102. "Conference of Mayors" means the Mayors of all the local governments within each of the nine San Francisco Bay Area counties listed in Government Code Section 66502. 131003. "County" as used in this division shall include city and county, and means any of the nine San Francisco Baby area counties listed in government Code Section 66502. 131004. "County Board of Supervisors" means the Board of Supervisors of any of the nine San Francisco Bay area counties listed in Government Code Section 66502 . 131005. "County Transportation Authority" means any Authority created pursuant to this division in any of the nine San Francisco Bay area counties listed in Government Code Section 66502 . 131006. "Local Governments" means the cities within each of the nine San Francisco Bay area counties listed in Government Code Section 66502 . Chapter 2. County Transportation Expenditure Plan 131020. Any County Board of Supervisors which believes its county has essential traffic and transportation projects for which current estimates of federal , state, and local funds may not be adequately available, may establish in conjunction with the county's Conference of Mayors a process to develop a county wide consensus on the need for such projects and on a proposed county transportation expenditure plan to adequately fund the construction, maintenance, repair, or operation of such projects. Such a process may include the establishment of a committee or committees as the Board of Supervisors and the Conference of Mayors deem necessary. The process shall provide for the participation of representatives of cities and the county, representatives of transit agencies serving the county, the California Department of Transportation, the Metropolitan Transportation Commission and such other agencies as may be determined to be necessary by the Board of Supervisors and the Conference of Mayors. The Board of Supervisors and the Conference of Mayors may request the Metropolitan Transportation Commission to provide some staffing assistance. The Board of Supervisors and the Conference of Mayors shall establish by resolution an expected schedule and the process to be used for the completion of the tasks set forth in this chapter. 131022. The county transportation expenditure plan shall consist of: (a) A prioritized list of essential traffic and transportation projects within the county, and their respective sponsoring agencies, - DRAFT - SEPTEMBER 11 , 1985 - PAGE N0. 2 - which current estimates of federal , state and local funds indicate are insufficient to provide for their completion. The types of projects that may be included may include capital , maintenance, repair or operation costs. However, no project shall be included that does not have a sponsoring agency. Further any state highway project must be endorsed by the California State Department of Transportation. Any project estimated with current adequate funding shall not be included on the list. Estimates of federal , state and local funding shall be based on estimates provided by the staff of the Metropolitan Transportation Commission. (b) An estimate of the costs of each of the projects listed in subparagraph (a) . (c) An estimate of the current sources of funds available to assist in the completion of each of the projects listed in subparagraph (a) . (d) An estimate of the additional amounts of funds to make up the difference between figures in subparagraphs (b) and (c) for each of the projects listed in subparagraph (a) . (e) A recommendation on whether the imposition of a retail transactions and use tax ordinance would be necessary to complete the funding of the transportation projects listed in subparagraph (a) . If a recommendation is made for the imposition of such a tax ordinance, it shall include a recommendation as to whether the tax shall be permanent or for a specific term. The recommendation will also address the issue of whether bonding authority should be sought and on the limitations of such bonding. (f) A recommendation on whether the county's Board of Supervisors should request the voters to authorize the creation of a County Transportation Authority pursuant to this division to impose and administer the proceeds of the retail transaction and use tax ordinance recommended in subparagraph (e) , or whether the county' s Board of Supervisors should request the Metropolitan Transportation Commission to impose and administer the proceeds of the retail transactions and use tax ordinance recommended in subparagraph (e) . The retail transactions and use tax ordinance shall be subject to the approval of a majority of the electors voting on the measure to approve its imposition. (g) If the recommendation is for the Board of Supervisors to ask the voters to request the Metropolitan Transportation Commission to impose the tax ordinance, a recommendation shall be made for the __ — DRAFT — SEPTEMBER 11 . 1985 — PAGF NO. 3 — DRAFT establishment and membership composition of an advisory committee to advise the Metropolitan Transportation Commission on the administration of the recommended county transportation expenditure plan. (h) If the recommendation is for the creation of a County Transportation Authority, the recommendation shall also include the number of members and the constituent local government(s) that each member represents on the County Transportation Authority. (i) A recommendation as to whether to seek the support of adjacent county(ies ) for projects that have intercounty impact by requesting the adjacent county(ies) ' Board of Supervisors and Conference of Mayors to develop a county transportation expenditure plan for their respective county. Adjacent counties shall endeavor to work cooperatively together to develop mutual traffic and transportation projects identified in their respective county transportation expenditure plan. 131023 . The recommended county transportation expenditure plan shall be subject to first a public hearing and then review by the Metropolitan Transportation Commission, before submittal to the County Board of Supervisors and local governments for adoption. 131024 . The Metropolitan Transportation Commission shall , within forty-five days after receipt of a draft county transportation expenditure plan forwarded pursuant to Section 131023 endorse the county transportation expenditure plan upon findings that: (a) the draft county transportation expenditure plan is consistent with the Metropolitan Transportation Commission Regional Transportation Plan ; (b) the draft county transportation expenditure plan provides a reasonable estimate of federal , state and local funds for the projects included. (c) the draft county transportation expenditure plan does not adversely affect the current estimates of federal or state funds available to any other county within the nine San Francisco Bay area counties. (d) the estimates of proceeds from any proposed retail transaction and -use tax ordinance are reasonable. - DRAFT - SEPTEMBER 11 , 1985 - PAGE N0. 4 - DRAFT 131025. If the Metropolitan Transportation Commission rejects a draft county transportation expenditure plan because the plan fails to meet the requirements set forth in section 131024, the Metropolitan Transportation shall return the draft plan to the respective county for amendment before resubmittal to the Metropolitan Transportation Commission for review. 131026. If the Metropolitan Transportation Commission endorses a draft transportation expenditure plan, it shall be returned to the County Board of Supervisors for its approval , and to local governments for their approval . A majority of the Board of Supervisors, a majority of the local governments within the county by majority vote of their respective councils, and a majority of the local governments representing a majority of the population of the county by majority vote of their respective councils, must approve the draft county transportation expenditure plan for it to be finallyy adopted. The adopted county transportation plan shall be published by the county within 30 days after its adoption. Chapter 3. Retail Transactions and Use Tax 131140. The Legislature, by the enactment of this chapter, intends a County Transportation Authority or the Metropolitan Transportation Commission, pursuant to a county transportation expenditure plan adopted pursuant to Section 131026, to use any additional funds provided by this chapter to supplement existing local revenues being used for public transportation purposes listed in the county transportation expenditure plan. The nine county San Francisco Bay area is further encouraged to maintain their existing commitment of local funds for public transportation purposes. 131141 . All allocations of revenues derived from the adoption of a retail transactions and use tax ordinance in a county, by either a County Transportation Authority or the Metropolitan Transportation Commission, shall be consistent with the the priorities established by the applicable county transportation expenditure plan. 131142. A retail transactions and use tax ordinance applicable in the incorporated and unincorporated territory of a county may be imposed by a County Transportation Authority, or the Metropolitan Transportation Commission, in the manner prescribed in Section 131143 and Part 1 .6 (commencing with Section 7251 ) of Division 2 of the Revenue and Taxation Code, if a majority of the electors voting on the measure vote to approve its imposition at an election which shall be called for the purpose by a county Board of Supervisors within one year after the adoption by a county transportation expenditure plan. The tax ordinance shall take effect at the close of the polls on the" day of election at which the - DRAFT - SEPTEMBER 11 , 1985 - PAGE N0. 5 - DRAFT proposition, as set forth in Section 131148, is adopted. The tax ordinance shall specify the period, as determined by the county transportation expenditure plan adopted pursuant to Section 131026, during which the tax will be imposed. The tax may be terminated earlier if the projects in the adopted county transportation expenditure plan are completed and any bonds outstanding issued pursuant to this division are redeemed. 131144. (a) The applicable county shall conduct the election called by Board of Supervisors pursuant to Section 131142 , and the county shall bear the cost in conducting the election, but shall be reimbursed from the proceeds of the retail transactions and use tax by the agency imposing the tax if said tax is approved pursuant to Section 131148. (b) The election shall be called and conducted in the same manner as provided by law for the conduct of elections by a county. 131145. (a) Any retail transactions and use tax ordinance adopted pursuant to this chapter shall be operative on the first day of the first calendar quarter commencing more than 120 days after adoption of the ordinance by either a county transportation authority or the Metropolitan Transportation Commission. (b) Prior to the operative date of the ordinance, a County Transportation Authority or the Metropolitan Transportation Commission shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of the ordinance. 131146. The net revenues derived from the taxes imposed pursuant to this chapter allowable after deduction for expenses pursuant to Section 131147, shall be allocated by the agency imposing the retail transactions and use tax for the transportation purposes as set forth in the adopted county transportation expenditure plan. 131147. In an adopted county transportation expenditure plan that provides for the Metropolitan Transportation Commission to impose a retail and transactions use tax, not more than .3 percent (three-tenths of one percent) of the annual net amount of revenues raised by any transactions and use tax per county may be used to fund the administrative salaries and routine expenses incurred by the Metropolitan Transportation Commission in implementing any county transportation expenditure plan. In an adopted county transportation expenditure plan that provides for a County Transportation Authority to impose a retail and transactions use tax, not more than .6 percent (six-tenths of one percent) of the - DRAFT - SEPTEMBER 11 , 1985 - PAGE N0. 6 - annual net amount of revenues raised by the retail transactions and use tax may be used to fund the administration, salaries, and routine expenses of any County Transportation Authority. All other funds, after reimbursement to the county for the cost of conducting the election as provided for in Section 13144, shall be used for the planning, design, construction, and operation of the traffic and transportation projects as set forth in the applicable county transportation expenditure plan, and shall be allocated according to eligible project sponsoring agencies. 131148 (a) The County Board of Supervisors, as part of the ballot proposition to approve the imposition of a retail transactions and use tax, shall seek authorization to issue bonds as may be provided for in the adopted county transportation expenditure plan payable solely from the proceeds of the tax. (b) The maximum bonded indebtedness which may be authorized shall be an amount equal to the sum of the principal and interest on the bonds not to exceed the estimated proceeds of the retail transactions and use tax for as determined by the county transportation expenditure plan adopted pursuant to Section 131026. (c) The proposition shall set forth the actual percent of the transactions and use tax. (d) The proposition shall set forth either a County Transportation Authority or the Metropolitan: Transportation Commission as the agency imposing the transaction and use tax. (e) The proposition may also include any proposal to increase any appropriate limits heretofore imposed upon the agency imposing the retail transactions and use tax pursuant to this section by the amount of the proceeds of the tax not entitled to an exemption from those limits as debt source. In this case the ballot proposition shall further include the following words: "and increases the appropriations limit." (f) The sample ballot to be mailed to the voters, pursuant to Section 10010 of the Elections Code, shall be the full proposition as set forth in the ordinance calling the election. (g) The actual wording of the proposition on any short form of ballot card, label , or other device, regardless of the system of voting used, shall read as follows: - DRAFT - SEPTEMBER 11 . 1985 - PAGE N0. 7 - I COUNTY TRAFFIC AND TRANSPORTATION i FUNDING P ROG RAM I YES I I I I I I I To authorize the Metropolitan Transportation I I I Commission to impose a ( ) percent I I transactions and use tax soTey- for traffic and I transportation purposes as set forth in the I I I I ( )county adopted transportation I NO I I expenditure plan, and to issue bonds payable from I I I I the proceeds of that tax (for a period of ( ) I I I I years. ) I I I OR I I I COUNTY TRAFFIC AND TRANSPORTATION I I FUNDING PROGRAM I YES I I I I I I i To create the ( ) County Transportation I Authority, and Coto authorize the Authority I to impose a ( ) percent transactions and I use tax solely fotraffic and transportation i purposes as set forth in the ( ) I NO I I county adopted transportation expen i ure pan, and I I I I to issue bonds payable from the proceeds of that tax I I I I (for a period of ( ) years. ) I I 131149. (a) The bonds authorized by the voters concurrently with the approval of the retail transactions and use tax may be issued by the agency imposing the retail and transactions use tax at any time, and from time to time, payable solely from the proceeds of the tax. The bonds shall be referred to as "limited tax bonds." (b) The pledge of retail transactions and use taxes to the limited tax bonds authorized under this chapter shall have priority over the use of any of the taxes for "pay-as-you-go" financing, except to the extent that that priority is expressly restricted in the resolution authorizing for the issuance of the bonds. 131150. Limited tax bonds shall be issued pursuant to a resolution adopted at any time, and from time to time, by a two-thirds vote by the - DRAFT - SEPTEMBER 11 , 1985 - PAGE NO. 8 - agency imposing the retail transactions and use tax approved pursuant to Section 131148. Each resolution shall provide for the issuance of bonds in the amounts as may be necessary, until the full amount of bonds authorized have been issued. The full amount of bonds may be divided into two or more series and different dates of payment fixed for the bonds of each series. A bond need not mature on its anniversary date. 131151 . (a) A resolution authorizing the issuance of bonds shall state all of the following: (1 ) The purposes for which the proposed debt is to be incurred, which may include all costs and estimated costs incidental to or connected with the accomplishment of those purposes, including, without limitation, engineering, inspection, legal , fiscal agents, financial consultant and other fees, bond and other reserve funds, working capital , bond interest estimated to accrue during the construction period and for a period not to exceed three years thereafter, and expenses of all proceedings for the authorization, issuance, and sale of the bonds. (2 ) The estimated cost of accomplishing those purposes. (3 ) The amount of the principal of the indebtedness. (4 ) The maximum term the bonds, proposed to be issued, shall run before maturity, which shall not be beyond the date of termination of the imposition of the transactions and use tax. (5 ) The maximum rate of interest to be paid, which shall not exceed the maximum allowable by law. (6 ) The denomination or denominations of the bonds, which shall not be less than five thousand dollars ($5,000 ). (7 ) The form of the bonds, including, without limitation, registered bonds and coupon bonds, to the extent permitted by federal law, and the form of any coupons to be attached thereto, the registration, conversion, and exchange privileges, if any, pertaining thereto, and the time when all of, or any part of, the principal become due and payable. (b) The resolution may also contain any other matters authorized by this article or any other law. 131152. The bonds shall bear interest at a rate or rates not exceeding the maximum allowable by law, payable semiannually, except that the first interest payable on the bonds, or any series thereof, may be for any - DRAFT - SEPTEMBER 11 , 1985 - PAGE N0. 9 - fib period not exceeding one year, as determined by the agency imposing the retail transactions and use tax approved pursuant to Section 131148. 131153. In the resolution authorizing the issuance of the bonds, the agency imposing the retail transactions and use tax approved pursuant to Section 131148 may also provide for call and redemption of the bonds prior to maturity at the times and prices and upon other terms as specified. However, no bond is subject to call or redemption prior to maturity, unless it contains a recital to that effect or unless a statement to that effect is printed thereon. 131154. The principal of and interest on the bonds shall be payable in lawful money of the United States at the office of the treasurer of the agency imposing the retail transactions and use tax approved pursuant to Section 131148, or at other places as may be designated, or at both the office and other places at the option of the holders of the bonds. 131155. The bonds, or each series thereof, shall be dated and numbered consecutively and shall be signed by the chairperson or vice chairperson of the agency imposing the retail transaction and use tax approved pursuant to Section 131148 and the auditor-controller of such agency, and the official seal , if any, of the such agency shall be attached. The interest coupons of the bonds shall be signed by the auditor-controller of the agency imposing the retail transaction and use tax. All of the signatures and seal may be printed, lithographed, or mechanically reproduced, except that one of the signatures shall be manually affixed. If any officer whose signature appears on the bonds or coupons ceases to be that officer before the deliver of the bonds, the officer's signature is as effective as j_f the officer had remained in office. 131156. (a) The bonds may be sold as the agency imposing the retail transactions and use tax approved pursuant to Section 131148 determines by resolution, and the bonds may be sold at a price below par. However, the discount on any bonds so sold shall not exceed 5 percent of the par value thereof. (b) Before selling the bonds, or any part thereof, the agency imposing the retail transactions and use tax approved pursuant to Section 131148 shall give notice inviting sealed bids in any manner as it may prescribe. If satisfactory bids are received, the bonds offered for sale shall be awarded to the highest responsible bidder. If no bids are - DRAFT - SEPTEMBER 11 , 1985 - PAGE N0. 10 - DRAr-114- received, or if the agency imposing the retail transactions and use tax approved pursuant to Section 131148 determines that the bids received are not satisfactory as to price or responsibil.ity of the bidders, the authority may reject all bids received, if any, and either re-advertise or sell the bonds at private sale. 131157. Delivery of any bonds may be made at any place either inside or outside the state, and the purchase price may be received in cash or bank credits. 131158. All accrued interest and premiums received on the sale of bonds shall be placed in the fund to be used for the payment of principal of and interest on the bonds, and the remainder of the proceeds of the bonds shall be placed in the treasury of the agency imposing the retail transactions and use tax approved pursuant to Section 131148 and applied to secure the bonds or for the purposes for which the debt was incurred. However, when the purposes have been accomplished, any money remaining shall be either (a) transferred to the fund to be used for the payment of principal of and interest on the bonds or (b) placed in a fund to be used for, the purchase of outstanding bonds of the agency imposing the retail transaction and use tax approved pursuant to Section 131148 from time to time in the open market at prices and in the manner, either at public or private sale or otherwise, as determined by said agency. Bonds so purchased shall be canceled immediately. 131159. (a) The agency imposing the retail transactions and use tax approved pursuant to Section 131148 may provide for the issuance, sale or exchange of refunding bonds to redeem or retire any bonds issued by said agency upon the terms, at the times and in the manner which it determines. (b) Refunding bonds may be issued in a principal amount sufficient to pay all , or any part of, the principal of the outstanding bonds, the premiums, if any, due upon call and redemption thereof prior to maturity, all expenses of the refunding, and either of the following: (1 ) The interest upon the refunding bonds from the date of sale thereof to the date of payment of the bonds to be refunded out of the proceeds of the sale of the refunding bonds or to the date upon which the bonds to be refunded will be paid pursuant to call or agreement with the holders of the bonds. (2 ) The interest upon the bonds to be refunded from the date of sale of the refunding bonds to the date of payment of the bonds to be refunded or to the date upon which the bonds to be refunded will be paid pursuant to call or agreement with the holders of the bonds. - DRAFT - SEPTEMBER 11 , 1985 - PAGE N0. 11- D L P, F7.� i (c) The provisions of this chapter for the issuance and sale of bonds apply to the issuance and sale of refunding bonds. 131160. (a) The agency imposing the retail transactions and use tax approved pursuant to Section 131148 may borrow money in anticipation of the sale of bonds which have been authorized pursuant to this chapter, but which have not been sold or delivered, and may issue negotiable bond anticipation notes therefor and may renew the bond anticipation notes from time to time. However, the maximum maturity of any bond anticipation notes, including the renewals thereof, shall not exceed five years from the date of delivery of the original bond anticipation notes. (b) The bond anticipation notes, and the interest thereon, may be paid from any money of the agency imposing the retail transactions and use tax approved pursuant to Section 131148 available therefor, including the revenues from the retail transactions and use taxes imposed pursuant to this chapter. If not previously otherwise paid, the bond anticipation notes, or any portion thereof, or the interest thereon, shall be paid from the proceeds of the next sale of the bonds of said agency in anticipation of which the notes were issued. (c) The bond anticipation notes shall not be issued in any amount in excess of the aggregate amount of•the bonds which the agency imposing the retail transactions and use tax approved pursuant to Section 131148 has been authorized to issue, less the amount of any bonds of the authorized issue previously sold, and also less the amount of other bond anticipation notes therefor issued and then outstanding. The bond anticipation notes shall be issued and sold in the same manner as the bonds. (d) The bond anticipation notes and the resolutions authorizing them may contain any provisions, conditions, or limitations which a resolution of the agency imposing the retail transactions and use tax approved pursuant to Section 131148 authorizing the issuance of bonds may contain. 131161 . Any bonds issued under this chapter are legal investment for all trust funds ; for the funds of insurance companies, commercial and savings banks, and trust companies ; and for state school funds ; and whenever any money or funds may, by any law now or hereafter enacted, be invested in bonds of cities, counties, school districts, or other districts within the state, that money or funds may be invested in the bonds issued under this chapter, and whenever bonds of cities, counties, school districts, or other districts within this state may, by any law now or hereafter enacted, be used as security for the performance of any act or the deposit of any public money, the bonds issued under this chapter may be - DRAFT - SEPTEMBER 11, 1985 - PAGE N0. 12 - DRAF. so used. The provisions of this chapter are in addition to all other laws relating to legal investments and shall be controlling as the latest expression of the Legislature with respect thereto. 131162. Any action or proceeding wherein the validity of the adoption of the retail transactions and use tax ordinance provided for in this chapter or the issuance of any bonds thereunder or any of the proceedings in relation thereto is contested, questioned, or denied, shall be commenced within six months from the date of the election at which the ordinance is approved; otherwise, the bonds and all proceedings in relation thereto, including the adoption and approval or the ordinance, shall be held to be valid and in every respect legal and incontestable. Chapter 4. Metropolitan Transportation Commission Administration of Adopted County Transportation Expenditure Plan 131200. Upon approval of the transactions and use tax at the election conducted pursuant to Chapter 3 (commencing with Section 131140 ) in a county with an adopted county transportation expenditure plan that provides that the Metropolitan Transportation Commission shall administer the tax, the Metropolitan Transportation Commission shall do all of the following: (a) Appoint an advisory committee, as provided in the county transportation expenditure plan whose members shall be compensated at the rate of fifty dollars ($50 ) for attending meetings of the committee, but not to exceed one hundred dollars ($100 ) in any month, and necessary traveling and personal expenses incurred in the performance of his or her duties as authorized by the Metropolitan Transportation Commission. Members of the staff of the Metropolitan Transportation Commission as determined by the Metropolitan Transportation Commission, shall be available to assist the advisory committee in its work. (b) Do any/and all things necessary to carry out purposes of this chapter. 131201 . The Metropolitan Transportation Commission, with the advice of the advisory committee, shall determine the allocation of the net revenues derived from the imposition of the retail transactions and use tax in conformance with the respective county transportation expenditure plan adopted pursuant to Section 131026. 131202. The Metropolitan Transportation Commission shall prepare and adopt an annual report by January 1 of each year on progress to achieve the objectives of completion of the projects in each county - DRAFT - SEPTEMBER 11 , 1985 - PAGE N0. 13 - another member shall be appointed for the remainder of the term by the constituent local government(s) that that member represents. 131242. The Secretary of the Business, Transportation and Housing Agency shall convene the initial meeting of a County Transportation Authority at the county seat, within ninety (90) days after the authority is deemed created. Article 2. Administration 131260. A County Transportation Authority at its first meeting, and thereafter after the first complete calendar year, annually at the first meeting in January, shall elect a chairperson who shall preside at all meetings, and a vice chairperson who shall preside in his or her absence. In the event of their absence or inability to act, the members present, by an order entered in the minutes, shall select one of their members to act as chairperson pro tempore, who, while so acting, shall have the authority of the chairperson. 131262. The majority of the members of a County Transportation Authority constitutes a quorum for the transaction of business, and all official acts of said agency require the affirmative vote of a majority of the members of the agency. 131263 . The acts of a County Transportation Authority shall be expressed by motion, resolution, or ordinance. 131264. All meetings of a County Transportation Authority shall be conducted in the manner prescribed by the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950 ) of Part l of Division 2 of the Title 5 of the Government Code). 131265. A County Transportation Authority shall do all of the following: (a) Adopt an annual budget and fix the compensation of its officers and employees. (b) Adopt an administrative code, by ordinance, which prescribes the powers and duties of County Transportation Authority officers, the method of appointment of County Transportation Authority employees, and methods, procedures, and systems of operation and management of the County Transportation Authority. (c) Cause a post-audit of the financial transactions and records of the County Transportation Authority to be made at least annually by a - DRAFT - SEPTEMBER 11 , 1985 - PAGE N0. 15 - J r i certified public accountant. (d) Appoint an advisory committee, which membership reflects a broad spectrum of interests and geographic areas of the county. Members of the staff of the County Transportation Authority, as determined by the County Transportation Authority, shall be available to aid the advisory committee in its work. (e) Appoint other advisory committees that it deems necessary. (f) Do any and all things necessary to carry out the purposes of this chapter. 131266. Notice of the time and place of the public hearing for the adoption of the annual budget of a County Transportation Agency shall be published pursuant to Section 6061 of the Government Code, and shall be published not later than the 15th day prior to the date of the hearing. The proposed annual budget shall be available for public inspection at least 15 days prior to the hearing. 131267. A County Transportation- Authority may appoint officers that it deems necessary to carry out its duties and functions. 131268. Each member of a County Transportation Authority shall be compensated at the rate of fifty dollars ($50) for each day attending the business of the agency, but not to exceed one hundred ($100) dollars in any month, and necessary traveling and personal expenses incurred in the performance of his or her duties as authorized by the County Transportation Authority. 131269. A County Transportation Authority may enter into a contract with the Board of Administration of the Public Employees' Retirement System, and the board may enter into the contract to include all of the employees of the County Transportation Authority into that retirement system. The employees may be entitled to the same health benefits as are state employees pursuant to Part 5 (commencing with Section 22751 ) of Division 5 of Title 2 of the Government Code or any other retirement system that a County Transportation Authority determines is in the best interest of it employees. Article 3. Powers and Functions 131280. A County Transportation Authority shall close its affairs and be - DRAFT - SEPTEMBER 11 , 1985 - PAGE N0. 16 - D:17 terminated within 180 days after the completion of the projects listed in the county transportation expenditure plan, and upon retirement of all the bonds authorized to be issued pursuant to this division. 131281 . A County Transportation Authority may sue and be sued, except as otherwise provided by law, in all actions and proceedings, in all courts and tribunals of competent jurisdiction. 131282. All claims for money or damages against a County Transportation Authority are governed by Division 3.6 (commencing with Section 810) of Title 1 of the Government Code except as provided therein, or by other statutes or regulations expressly applicable thereto. 131283. A County Transportation Authority may make contracts and enter into stipulations of any nature to indemnify and hold harmless, to employ labor, and to do all acts necessary and convenient for the full exercise of the powers granted in this chapter. 131284. A County Transportation Authority may contract with any department or agency of the United States, with any public agency, including but not limited to, the Department of Transportation, the Metropolitan Transportation Commission, or any transit district, county, or city, or with any person upon terms and conditions that the County Transportation Authority finds is in its best. interest. 131285. Contracts for the purchase of supplies, equipment, and materials in excess of twenty-five thousand dollars ($25,000) shall be awarded to the lowest responsible bidder after competitive bidding, except in an emergency declared by the vote of two-thirds of the voting membership of the agency. 131286. If, after rejecting bids received under Section 131285, the County Transportation Authority determines and declares by a two-thirds vote of all of its voting members that, in its opinion, the supplies, equipment, or materials may be purchased at a lower price in the open market, the agency may proceed to purchase these supplies, equipment, or materials in the open market without further observance of the provisions regarding contracts, bids, or advertisement. Article 4. Administration of Adopted County Transportation Plan 131300. A County Transportation Authority shall administer the county transportation expenditure plan adopted pursuant to Section 131026. 131301 . The County Transportation Authority shall determine the use of - DRAFT - SEPTEMBER 110 1985 - PAGE N0. 17 - the net revenues derived from the imposition of the retail transactions and use tax in conformance with the priorities established in the county expenditure plan adopted pursuant to Section 131026. 131302. A County Transportation Authority shall consult with and coordinate its actions with other transportation funding agencies when allocating net revenues derived from the imposition of the retail transactions and use tax to project sponsoring agencies of the transportation projects including in the county expenditure plan. 131303. A County Transportation Authority shall prepare and adopt an annual report by January 1 of each year on progress to achieve the objectives of completion of the projects on the county transportation expenditure plan. 131304. Any amendment to a county transportation expenditure plan proposed by the County Transportation Authority shall be approved in the same manner as the adopted county transportation expenditure plan was approved pursuant to Chapter 2 (commencing with Section 131020). Amendments may provide for the use of additional federal , state, and local funds to account for expected revenue fluctuations, or to take into consideration unforeseen circumstances. Any amendment shall take into account that all appropriate actions must be taken to give highest priority to the projects in the initial expenditure plan and any amendments shall not delay or delete any project in the initial plan without the approval of the project sponsor. SECTION 2. Section 7252.6 is added to the Revenue and Taxation Code to read: 7252.7 "District" as used in this part, also means a County Transportation Authority, or the Metropolitan Transportation Commission, if authorized to impose transactions and use taxes pursuant to this part. SECTION 3. Sections 66525 and 66530 are added to the Government Code to read: 66525. The Commission shall administer any county transportation expenditure plan which includes a provision that the Commission shall implement a retail transactions and use tax pursuant to the provisions of Division 12.5 (commencing with Section 131000) of the Public Utilities Code. 66530. The Commission shall continue to actively on behalf of entire region seek to assist in the development of adequate funding sources to - DRAFT - SEPTEMBER 11 , 1985 - PAGE NO. 18 - develop, construct, support, and maintain traffic and transportation projects that it determines essential. SECTION 4. No appropriation is made and no reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution or Sections 2231 or 2234 of the Revenue and Taxation Code because this act is in accordance with the request of a local agency or school district which desired legislative agency imposing the retail transactions and use tax approved pursuant to Section 131148 to carry out the program specified in this act. - DRAFT - SEPTEMBER 11 , 1985 - PAGE N0. 19 -