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HomeMy WebLinkAboutItem 8.1 Senate Bill 144 (2)~ . CITY OF DUBLIN AGENDA STATEMENT City Council Meeting Date: April 22, 1991 SUBJECT: EXHIBITS ATTACHED: RECOMMENDATION: ~ ~U' / 1v FINANCIAL STATEMENT: Support of SB 144 Opposing Use of Public Funds for Privately Developed Tollway Facilities. (Report by Public Works Director Lee Thompson) 1) Copy of letter from Senator Bill Lockyer to City Manager of San Ramon, including text of Senate Bill 144. 2) Draft of City of San Ramon Resolution 3) Draft Resolution supporting SB 144. 4) Draft Resolution declaring nonsupport of SB 144. Hear Staff presentation, deliberate, take action as follows: 1) Defer decision to support or not support SB 144 until more information becomes available (Staff recommendation) OR 2) Adopt resolution Exhibit 3 supporting SB 144 opposing use of public funds for privately developed tollway facilities, OR 3) Adopt resolution Exhibit 4 not supporting SB 144. The alternate actions outlined in the recommendation section of this report would not have any direct cost impact to the City. DESCRIPTION: The State Legislature, in its session last year, passed Assembly Bill 680, which al_1_owed private toll roads to be constructed with public funds and the Department of Transportation to test the feasibility of building privately funded transportation facilities by developing four demonstration projects, a minimum of one being in the north State and one in the south State. One of these toll roads has been proposed for a corridor from Pleasanton, through Livermore, and north to Vacaville (Mid-State Toll. Road). CalTrans has entered into an agreement with a private consortium to utilize the State's police powers to obtain rights-of-way, as well as to set up other procedural matters to construct, maintain and operate the facility. The private consortium is apparently pursuing some State and Federal monies as contributions to help the viability of the project. Senators Lockyer and Boatwright (as well as other legislators) feel that AB 680 was set up to al_low private funding only on these demonstration projects and have introduced SB 144 to prohibit the use of public monies on these private toll roads. Senator Lockyer appeared at the March 27 Tri-Valley Transportation Commission meeting to present his stand on this issue (see attached letter and Bill text). The City Councils of. Pleasanton and Livermore will be discussing this issue at upcoming meetings, and San Ramon has already adopted a resolution in support of SB 144 (Exhibit 2). Some of the potential means for the consortium to obtain public funds would be Measure B monies and CalTrans monies to be used for State Route 84 since the proposed Mid-State Toll Road may eliminate the need for Route 84 (being in the ----------- I----------------- ------.-/---/------~-j ------------------------- ---- . -CO lOO ~' T Q ITEM NO.~ ~. COPIES TO• Deborah Acosta, City of Pleasanton Lee Horner, City of Livermore • ` same approximate location). The Measure B monies were to pay for approximately $20 million of the Route 84 project through Livermore, leaving a $25•million shortfall to complete the project. At this point in time, Staff feels that taking a position on this matter is premature without knowing whether Route 84 can be built with public financing alone and whether the private toll road would be feasible without infusion of public monies. The costs of the toll road are preliminary and could only be refined after an environmental document is prepared to determine what alignment is chosen and what environmental impacts need to be mitigated. Inasmuch as the road would run through and impact Livermore and Pleasanton, it would be prudent to see what position the City Councils of those two cities take before Dublin's City Council takes a stand. Staff, therefore, recommends that City Council receive Staff's presentation, deliberate, and defer the decision to support or not support SB 144 until additional information is available. If the City Council wishes to take a position at this time, draft resolutions have been prepared for support or nonsupport of SB 144. -2- . STATE CAPITOL S~\CRAMENTO. CALIFORtiI~\ 95R1~1 March 12, 1991 ~ Herb Moniz, City of San 2222 Camino San Ramon, Dear Herb: SENATE ~ hf_C;:~~vFL1 CALIFORNIA LEGISLATURE MAR 1~ ~991 City Manager Ramon Ramon CA 94583 ~;ITY ~~ ~'~°,, ~~.~~7~;1~i We are writing to share with you our concerns about the Midstate Toll Road. We oppose the use of public funds for this project and we believe the contract signed by Caltrans is ser.iously flawed. . o The developer of the Midstate toll road is seeking local funds even though the Legislature approved AB 680 (Baker) with the understanding that only private funds would be used. Caltrans and the Developer are also lobbying Congress to change federal law so they can use federal funds to build toll roads, despite previous assurances by Caltrans Director Robert Best that federal funds would not be used to build the toll road (L.A. Times, September 15, 1990, page A27). AB 680 states: "The Department of Transportation should be permitted and encouraged to test the feasibility of building privatelY funded transportation facilities by developing four demonstration projects." The Senate Transportation Committee analysis of AB 680 dated 6/27/89 states that AB 680 woulci "authorize private entities or consortia to construct...transportation facilities usinq private funds." ~ ~ ' ~~"' ~~ . ~'~~~ ~~ p ~G?~:"~ µ °a'~~a ~ ~,~,. ~=:"~..~ ~ ~ Herb Moniz March 12, 1991 Page 2 The Senate Floor Analysis of AB 680 dated 6/29/89 states 10this bill would allow the Department of Transportation to enter into agreements with private entities to construct four trans- portation demonstration facilities with brivate funds." We believe it is inappropriate to use public funds for roads that will only be used by the select few, especially when the Legislature approved the bill with the understanding that only. private funds would be used. o There was no public review of the contract. The Legis- lature's examination of the contract was'hampered by the- fact that these~contracts were negotiated in secret, with no public scrutiny. The Legislature was not given the opportunity to review these contracts before they were signed. This is highly unfortunate, given that the contract contains many provisions that are seriously flawed and unfair to the citizens of California: 1. Exclusive Development Rights. The contract grants the developer a broad monopoly and requires Caltrans to assist the developer in protecting this monopoly. The contract creates a huge "franchise zone" and requires Caltrans to use its "best efforts" to persuade state, regional, and local government not to develop, construct, or operate a o "Competitive Transportation Facility" within the franchise zone during the franchise term (contract,.page 16-17). The contract defines "Competitive Transportation Facility" to exclude widening and improvements to a variety of roads and high- ways that are not already scheduled in the 1990 State Transpor- tation Improvement Plan (page 7 and page 17). Although the contract lists some exceptions, several highways and routes would be competitive transportation facilities under the contract, such as highway 84, and parts of.routes 4 and 12 (page 7). 2. Claims aqainst local qovernments. Counties and cities should be careful -- enactment of ordinances, regulations, or zoning restrictions, or denial of permits, may result in lawsuits against local governments: o Caltrans is required to litigate to assist the developer with permits in some circumstances (page 20). o Caltrans is also required to "assist [the] Developer by providing documentation and witnesses" in "defense of any actions brought against Developer relating to the develop- ment,, acquisition, design, construction, operation, and maintenance of the project." (Page 50) s • . ~ ~ Herb Moniz March 12, 1991 Page 3 3. Claims aqainst the state. "Developer shall be entitled to [page 68-69] if: The contract provides that the seek compensation for losses" o"The State legislature, the CTC, Caltrans, or any other administrative agency or authority of the State enacts, adopts promulgates, modifies, repeals, or changes any State law, rule, initiative, referendum, constitutional provision or regulation, which has the effect of... (i) directing that the Project or any Facility or a portion thereof be acquired, (ii) terminating, limiting, abro- gating, or otherwise voiding the rights of Developer under this Agreement or any Related Agreement, or (iii) regu- lating or interfering with Developer's right to establish and collect tolls;" o"The voters of the State, b~ other ballot measure enact, repeal, or change any State has such effect; o"Any court issues an order, such effect. ~ initiative, referendum, or adopt, promulgate, modify, law, rule, or regulation" which decree, or judgment" which has The contract also provides that if any of its provisions do not comply with AB 680, Caltrans may be liable for damages. (Pages 61, 66, and 67-68). 4. Franchise term. AB 680 does not allow a lease term of more than 35 years. The contract allows extension of the facility lease agreement past 35 years in certain circumstances, such as strikes and acts of God (page 9 and page 55). This violates AB 680's 35 year maximum. The project will be built in two phases. The term of lease for the second phase probably violates AB 680's 35 year maximum because it allows for a lease that expires more than 35 years after transfer of the first phase of the project (page 19). 5. Toll collection. The Contract provides that Caltrans has no authority to set or regulate tolls within the franchise area (page 23), even though Caltrans Director Robert Best had previously stated that the tolls would be regulated by the State (L.A. Times, September 15, 1990, page A27). 6. Land condemnation. The contract provides that after satisfying certain requirements, the Developer may request that Caltrans condemn land for the toll road, and "[a]t Developer's ~ ~ Herb Moniz March 12, 1991 Page 4 request, Caltrans shall...upon [seeking and] obtaining [a CTC] resolution,...initiate property condemnation proceedings..." (page 29) (emphasis added). However, AB 680 provides that Caltrans "mav" exercise such powers. Nothing in AB 680 requires Caltrans to condemn land, raising concerns about the fairness of this contract provision. 7. Liability. Under the contract, Caltrans is liable for hazardous substances discovered one year or more after the expiration of the facility lease agreement if the Developer did not know about such substances. Thi~ is true even if Caltrans had equal lack of knowledge or reason to know. 8. Environmental impact. The environmental impact of the project could be significant. The Developer and Caltrans were so unsure about whether the contract complies with environmental laws that they both disclaimed all contractual liability in the event that the contract violated CEQA (page 62). 9. Labor. The contract provides that it is not a contract for a public work within § 4101 of the Public Contract Code (page 85). Therefore the developer can engage in bid shopping and bid peddling (page 54). ' The contract also allows the developer to use "sworn law enforcement officers.from any...jurisdiction within the state" for traffic enforcement. Therefore the developer could use non-CHP officers (page 54). The contract allows the use of private toll collectors,,and therefore the Developer could use toll collectors who do not belong to the California State ~nployees Association. 10. Airspace premises. The contract "airspace premises" along the entire toll 99 years (page 33-34). It is not clear t: plated by AB 680, which merely appears to "airspace" to enable a toll road to cross in its path. allows for the lease of road project for up to hat this was contem- authorize the lease of state highways that are The contract lets the developer rent "airspace premises" from the state for $1 per year for the first 35 years, followed by fair market lease rate for the remaining term of the lease (page 33-34). The contract also gives the developer the "right of first refusal" to lease at "fair market rental rate!' all other "airspace associated with any State highway or interstate within the Franchise Zone or within three (3) miles of the project" , (page 36). ~ • Herb Moniz March 12, 1991 Page 5 ~ The contract also allows the toll road company to build "airspace improvements" along the toll road on airspace leased to it (i.e. gas stations, restaurants, shopping centers, and other "income or revenue improvements") (page 4 and page 24). With Caltrans approval, the toll road company can construct off ramps to these "Airspace Improvements" and with a few safety-related exceptions, Caltrans is not allowed to close off this access, when the 35 year facility lease has expired (page 36). We hope you will consider our concerns. Sin~erely, ~~~ ,~ ~ DANIEL OATWRI T ~ BILL LOCKYER State,Senator, 7th D strict State Senator, lOth District =~Ef~JT B`r': H . _-~~ ~-~1 1~: --'rl•i . ~ . •, ~ • ' Display 1991-1994 Bill Tsxt - =N~'OR~-TI01i BILL t~T2~S8$Rs SB 144 ~ BILL ~T ]1I~NDED IN SEl[71'1'S M71RCA 13, 1991 INTRODUCBU SY BenAtcr Lockymr (Prinaip~l cowuthor: S~t~ator Boatvrright) (Coeuthor~~ 9ar~ator^ 7-1 vi~t~ D~da~~ Dill~, Jahnstonl ]CNn~, MaCorCvodal~ P~tYi~^ RCb~rti. and ~atsan (COauthort;_ A~~~mbly M~! natoq. C ~11 ChaCOn, Clut~, Ba~tin, spplr- FiAan! i~t Hu9he~- Is4nb~ra, Xloha, and P~~a~ J~NII~RY 7~ 1991 pAa$ 1 At- ~-ot to am~nd Qoctio~ 143 ot tht StrNto and Hiqhways Cod~, rolatinQ to traneportotion PaCilitios. zaai8L7-TZVS cattNBBL~s DZGIRBT 88 144, as am~nd~d. Lockyor. 8tat• tr~-r~~portation ~aoiliti~~: private. conatruction~ pub11C lunds.. Und~r eaiating laa, tbo D~partm~nt ot Tran~portation i^ authori~~d to enter into •graam~nts with privat• •ntiti~^ for th~ Construction by, and 16AqQ to, privat• •ntitio4 0! 4 tran~portation duao~atration projoate, includinq at leeet ono in north~rn Calilornia- aad on~ in aouth~rn Califorr-ia. The department io authorisod to leae• riqhts-ol-way i~, and airspaco ov~r or under, et~tQ hiqhwayd, to qrant necs~s~ry •a~sYt-entf, and to ieeua.p~rmite or oth4r authorizationa to snablo privat• •ntiti~i to construct traneportat~on faoilitios euppl~ntal to exi~tinq state-own~d tran~portatidn facilities, and to lease thoa• lacilitioa to ths privat• •ntities for up to 35 y~ara. The ngr~~mante may contnin prvviaions authos'isitiq the priv~t• ~ntity to charga tolla !or th~ us~ o! tho privat~ly constructod laciliti~s. Thio bill would prohibit tAe utilicatton o! any public fundv ~ as epecifieQ~ towazd the d~volopment or oonatruction o! •ny ouch traneportation lacility for Which a toll is oharqed. vot~s majority. 1-ppropriatione no. riscal aoarotiitt..~ no. &tato-m~ndat~d Iocdl proqram: no. `' • -~~]-9i 1?' ~r~F'f,~ r,.::~,~~.__ _ _ ___ --= - _ SENT E~r.ia - - • -- --- - --' . , ~ • ~ PAG$ 2 Diapl~y 1991-194Z 8111 T~xt - INFO~WAT2oN BILL NtTMBERt 88 I44 B=yi+ 28YT TI~ PaOPLE OF T8S ST7~T8 O~ CALIS`QRNI71 Da ~Nl~ICT aS P'OISAW3 t 9ECTION 1. Section 143 ot th~ 6trNts anfl HiqhMaya Coda is ameaded to rends 143. (a) Ths d~partmrnt m~y •oliait propo~al• and snt~r into ~grQ~nte. with privst~ •ntiti~s, or coneortia ther~ot, for tha conotzuction by~ end leaae to, priv~lt• ~ntiti~s ot:lour public tr~n~portlltion dnmonatratian pzojecte, at l~ast on~ oP which ahall bo in north~rn Calitornia an8 ona in ~outhorn California. (b) Fcr the purpos~ o~ ltoilitatiaq thoa~ proj~at~, the aqr~nta xny inalud~ provi~ions ~or the leeee oi ri~hts-of-way ir-, and air~p~co ovor or under, ~eta~te hiqhwaye, for tha granting of n~c~~~ary •aaemerita, and for the is~uanc~ of psrmita or other duthoris~tion• to onab2o tha privato ontity to con~truct tran~portetion laciliti~• ^upplsm+ntel to sxietinq stdte-ownQd trnneportation facilitioQ. Ficilitioo conotruct~d by a privata ~ntity pursuant to thi~ ~ortion ahall, at all timoa~, ba ovmod by tho otato. . ThQ aqreement ehall provide for the leaee of thoee facilitise to the ~rivate entity for up to 35 yeara. In oonaidoration thorQfor, the ngroement eha12 provide !or complete revereioa ot the privdtely oon~tructed le.Cili.ty te thB etate at the sxpiration oP th~ leaa• at no charp• tc th• etate. (c) Th• d~partm~nt may ~Y~rci~~ any pow~r pos~~~~~d by it with r*ap~ct ta . the development and conetruction oP Btste traneportation projecte to lacilitate the development and oonotruotion of trnnaportation prcjeota Durauant to thi^ s~ction. AqrQna~pnts !or maint~rtana• and polic~ ^~rvicoa Qnt~rod.into purauant to this s~otion shall Drovid~ !or lull raimbureement for aarvicos r~ndered by the department or oth~r 4t~to aqanoiQa. Tho doDattmant may provid• s~rvic~~ fot which it ie reimbureed with reapect to preliminary planning, envirOtlmental Certificntion,'and pr~liminary d~oiqn of tho do,nonetration Drojecte. (d) llqreemsnt^ ~nt~r~d into purquant to thi~ s~ction shall authoriz• tho pr~vatp anti~y to itnpoae tolle for us• of a tacility conotruct~d by it, and ahall require that over thQ tasm of th~ lsar• the to12 revonuoa bo applied to peym~nt of tha privato •ntity's capital outlay costv for th• pro~oCt, tho coats aaaociatod with operatione, toll colloction, administration of the lacility, r~imburaement to th• atato !or th• coets o! maint~nnnco and polico aervices, and a raa~onabl• r~turn on inv~atm~nt to thc ~rivato •ntity. The. agr~oment ehall raquiro that aay •xc~ee toll r~v~nu• ~ith~r b• appliod to ar.y indobtedn.s^ incurred by the privat• ontity with rQapcct to th• proj~ct or ~e paid into th~ State Hiqhway l-acouqt, or both. 6ubaequQnt to ~xp:ratioa o! :~,e loase of d fecility to a privRt• •ntity, tho departmont miy ~ontinue to charqo tclla fvr uae o! th• laallity. (o) Th• plana and opooilioation~ ter •ach projoot con~truatsd pursuant to thia oaction •h~ll comply with th• Cepertment'^ otatld~rds :or stat• :~Et•.IT ~;,;•;j=j , _--~~_1-'=1 ic:._~ri~i . _--_-- --- --- - --- ' - f ~, , ` • pAa$ 3 , ~ ~ pispiay 1991-199~ sili Toxt - INeOAa!]1~IO1~i BILL tiiTMs~R: 88 144 BI~ ~T ivato transportation projoct~. I- facility oonstruot~d bY ~tnd~ ~a= ~~ o=pth~ eatity ~hall~ during th~ t~rm ot t1r ls~t~a, b~ d~~d otata hiqhway ey~tstt+ tor p~urpos~^ Qf iB~ntilicatioa, m~int~nanao, Wi~~rge tion o= traific 1aws, aad !or th~ ~urpor~s o! 0l.vision 3.6 (aom~~Qinq 810} o! Titls i of th~ Gvv~rnta~nt Code. liG ~und~ shall be (!) NotpithrtiaAdinq any oth~r provision of l~w- no p~sb ut~liz~d in any lorm tdward th~ d~wlopmsnt or can~truction o~ tran~porta~ioa laciliCi~s authoriaad by thif YwCt~OA !or whiah a toll is ch~rq~d• For tho purpoea of this subdivi~ian~ " u~iC lu~d!" includ~, but sr~ nat limitod t~ an lsr~d~ buil~sc !~a~nt' -r ~n oth~r u~,b11.a ro rt .of valu~ for whicri ~~1.r n-ark~t valu~ i~ not r~C~iv~d, but doos not ir-clud~ th4 sal~-ri~m nw d sxp~n•~4 °i u~ Iia ~ploya~~ ar of~i~~ M- h p rtiripat• in me~tinas. disouosiort~. or a~4otiatioas r• ardin t h~ p lann i ng~ c o n s t r uotio~ snd o~ ~ a~ tr~~~~ntion tao i~ liti~~ a u t h„ oriz~d ~ thi° ~°°tiont if th. acti,~oa ~~ cond_ ur ~~ part o! tha inQlviduals' off,~ nl du_ t^i!• °n d ax• ~erics~ned !or aim^ ilar laci~ 1~! w~thout com nsatioa. 4 • ~. RESOLUTION NO. 91-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAMON IN SUPPORT OF SB144 OPPOSING USE OF PUBLIC FUNDS FOR PRIVATELY DEVELOPED TOLL WAY FACILITIES WI-IEREAS, the State of California has enacted legislation (AB680) allowing for the construction of privately funded toll road facilities in the state; and WHEREAS, the Mid-State Toll Way Project has been designated as one of the initial projects in this program; and WHEREAS, the Mid-State Toll Way Project would have significant impacts upon regional transportation systems; and WHEREAS, under the provisions of the enabling legislation AB680, the~ project is to be constructed with the use of only private funds; and WHEREAS, State Senators, Daniel E. Boatwright and Bill Lockyer have introduced legislation in California Senate to preclude the expenditure of public funds for the purposes of construction of these privately developed toll way.projects; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Ramon resolves to support Senate Bill 144 and to thereby express its opposition to the use of public funding sources for the purposes of construction of privately developed toll road facilities in the State of California. PASSED, APPROVED AND ADOPTED at the meeting of March 26, 1991, by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Wayne W. Bennett Mayor Judy Macfarlane . City Clerk ~ - -- ~, , _ r. -. t ~ y W; , r -A ~M ~ ^ (~~~ ~~~` ~~ . 9`~% ~ ~~ ~ ~~ ~ 6`~ • • RESOLUTION N0. -91 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN IN SUPPORT OF SB 144 OPPOSING USE OF PUBLIC FUNDS FOR PRIVATELY DEVELOPED TOLL WAY FACILITIES WHEREAS, the State of California has enacted legislation (AB 680) allowing for the construction of privately funded toll road facilities in the State; and WHEREAS, the Mid-State Toll Way Project has been designated as one of the initial projects in this program; and WHEREAS, the Mid-State Toll Way Project would have significant impacts upon regional transportation systems; and WHEREAS, under the provisions of the enabling legislation AB 680, the project is to be constructed with the use of only private funds; and WHEREAS, State Senators, Daniel E. Boatwright and Bill Lockyer have introduced legislation in the California Senate to preclude the expenditure of public funds for the purposes of construction of these privately developed toll way projects; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby support Senate Bill 144 and thereby expresses its opposition to the use of public funding sources for the purposes of construction of privately developed toll road facilities in the State of California. PASSED, APPROVED, AND ADOPTED this 22nd day of April, 1991. AYES: NOES: ABSENT: Mayor ATTEST: City Clerk l~ n ~. ~. ` ~ ~~~ ~~ ~~~ ~~ f ~~ . • i RESOLUTION N0. -91 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN DECLARING NONSUPPORT OF SB 144 OPPOSING USE OF PUBLIC FUNDS FOR PRIVATELY DEVELOPED TOLL WAY FACILITIES WHEREAS, the State of California has enacted legislation (AB 680) allowing for the construction of privately funded toll road facilities in the State; and WHEREAS, the Mid-State Toll Way Project has been designated as one of the initial projects in this program; and WHEREAS, the Mid-State Toll Way Project would have significant impacts upon regional transportation systems; and WHEREAS, under the provisions of the enabling legislation AB 680, the project is to be constructed with the use of private funds; and WHEREAS, State Senators, Daniel E. Boatwright and Bill Lockyer have introduced legislation in the California Senate to preclude the expenditure of public funds for the purposes of construction of these privately developed toll way projects; and WHEREAS, this project may not be feasible without the use of public funds; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby declare nonsupport of Senate Bill 144 regarding use of public funding sources for the purposes of construction of privately devel_oped toll road facilities in the State of California. PASSED, APPROVED, AND ADOPTED this 22nd day of April, 1991. AYES: NOES: ABSENT: Mayor ATTEST: City Clerk _ _ __ _ _ _ _ Y~~~ ~~ .¢ . ''~-'v»~~~pCi#t~'3 8~~~ ¢ r ~ ~t@ ~ ~4~~ ~ ~~m