HomeMy WebLinkAbout8.2 TollRoaddFacility
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CITY OF DUBLIN
AGENDA STATEMENT
City Council Meeting Date: March 27, 1995
SUBJECT:
Support for Toll Road Facility
Report by: Public Works Director Lee Thompson
EXHIBITS A TT ACHED:
('1)
/2)
/3)
Resolution of Support for Public Toll Road
Proposed Legislation by Assemblyman Richard Rainey
(ABlOI9)
Draft Letter to Assemblyman Rainey
RECOMMENDA TION:
/lrr
,
1)
2)
Adopt Resolution
Authorize Mayor to send letter (Exhibit 3) to Assemblyman
Rainey to Support AB1019, with modifications
FINANCIAL STATEMENT:
As written, AB1019 could require taxpayers to purchase the private
toll road franchise if a public toll road were to be constructed on
State Route 84. By modifying the proposed legislation, taxpayers
and/or new developers could save the cost of franchise acquisition
should it be decided to go forward with a public toll road.
DESCRIPTION: This item, induding the resolution, has been placed on the agenda at
the request of Mayor Guy Houston. As the City Council is aware, California residents in the past few
elections have not passed any major transportation funding measures. In addition, with State and Federal
budget problems, public transportation funding will not be available in the near future to keep pace with
California's growth and transportation infrastructure needs. The State Legislature is considering, given
the transportation funding constraints, that authority be extended to the cities and counties to authorize
their direct participation in public/private partnership as owners or participate in the development of toll
transportation facilities.
California Toll Road Company (CTRC) currently has a franchise agreement with the State to construct a
private toll road on State Route 84. California State Assemblyman Richard Rainey has introduced
AB 1 0 19 to allow jurisdictions in Contra Costa, Alameda, and San Joaquin Counties to develop a public
tollway. As presently drafted, AB1019 states that any public toll projects are required to acquire the
CTRC's interest in the development franchise agreement within the California Toll Road Company
development franchise area. The cost of acquiring the interest in this franchise agreement is unknown.
Staff is concerned about this condition, as one of the franchise areas is along the State Route 84 corridor.
CTRC's existing franchise agreement will expire if environmental clearance has not been obtained for the
project by January 1,2001, and construction of the project has not been commenced by January 1,2004.
At this time, if the CTRC does not meet these deadlines, public jurisdictions would not have to acquire the
California Toll Road Company development interest. The new bill leaves open the requirement to
compensate the CTRC if the CTRC does not meet its deadlines. Staff contacted Assemblyman Rainey's
staff and Dennis Parker from the CTRC and relayed these Staff comments. Dennis Parker met with Staff
and agreed to modify the AB 1019 language to satisfy the concern.
The City's Staff has $ince made some additional minor wording suggestions. The recommended wording
changes to the bill include:
1. To make clear that no compensation shall be payable following termination of the original
agreement between the California Toll Road Company and the State.
--------------------------------------------------------------------------------------------~--------------------------------
ITEM NO. 8.2
Copies to:
Assemblyman Rainey
Dennis Parker
CITY CLERK
FILE~
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2. That the jurisdictions be allowed to proceed to create a JPA and perform environmental and
engineering work prior to January 1,2004, at their own risk and without payment of
compensation to the California Toll Road Company.
The City of Dublin is supportive of Joint Powers Authorities which allow local jurisdictions to construct
toll road facilities, for which users of the facilities will pay the cost of construction, maintenance, and
operation. It appears that AB 1019 would provide this opportunity. Specifically, this legislation states
that Boards of Supervisors of the Counties of Contra Costa, Alameda, and San Joaquin, and the City
Councils of Antioch, Brentwood, Dublin, Lathrop, Livermore, Manteca, Pittsburg, Pleasanton and Tracy
may, by ordinance, organize one or more joint powers authorities to construct, manage and operate state
toll transportation facilities in Alameda, Contra Costa and San Joaquin Counties.
The toll facility could reduce the amount of development traffic impact fees needed, as almost half of the
transportation improvement cost in the Tri- Valley Transportation Plan is due to construction of State
Route 84.
Staff recommends that the City Council adopt the attached resolution and authorize the Mayor to send the
letter (Exhibit 3) to Assemblyman Rainey to support AB 1019 with the understanding that it will be
revised to include Staff s concern.
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RESOLUTION NO. -95
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
SUPPORT FOR PUBLIC TOLL ROAD
WHEREAS, a safe, effective, and efficient surface transportation system is essential for
the economic and social well-being of the citizens and businesses of the Tri-Valley area and the City of
Dublin; and
WHEREAS, Interstate 580 and State Route 84 are vital links in the regional and inter-
regional transportation system and these links are rapidly becoming congested to the extent that the Tri-
Valley's economic, social, and environmental well-being is being eroded; and
WHEREAS, improvements contemplated for these routes and corridors by the State,
Metropolitan Transportation Commission, and Alameda County Transportation Agency cannot be funded
to the extent needed from existing revenue sources, including highway user revenue funds, sales taxes
earmarked for transportation, and fees; and
WHEREAS, the City of Dublin seeks to fairly allocate the costs of improvements among
all classes of users of the facilities, including those "drive through" users whose travel and/or goods
originate and/or end outside the area directly served by the facilities; and
WHEREAS, the City of Dublin desires to have tools made available to local governments
that provide resources for actions that mitigate the environmental costs and consequences of regional
highway improvements, including local transportation facilities and services, regional rail and transit,
including the Altamont passenger rail service; and
WHEREAS, such tools require revenue sources that are sufficiently long term and under
the control of participating local governments; and
WHEREAS, it is in the interest of the public and good public policy that such action
undertaken at the local level by local government directly responsible to the public;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin
A. Expresses interest in exploring new ways of working with other area local
governments to pursue funding tools to improve the Td. Valley transportation system;
B. Requests its representatives to the California State Legislature to seek and promote
legislation that authorizes the City of Dublin, along with other interested cities and counties, to form Joint
Exercise of Powers Authorities (JPA) for the purposes of planning, realizing, and operating public toll
revenue transportation facilities;
EXHiBIT. \
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C. Requests such JP A be granted the powers necessary to realize such facilities,
including planning, developing ,owning, and operating public toll revenue facilities. These powers may
include issuing bonds funded solely from toll revenues and transportation development fees, the proceeds
of which will pay for development costs, construction costs, operating and maintenance costs; and from
future cash flow pay costs of environmental mitigation.
PASSED, APPROVED, AND ADOPTED this 27th day of March, 1995.
AYES:
NOES:
ABSENT:
Mayor
ATTEST:
City Clerk
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MAR-06-'95 MON 11:37 ID:RAINEY D.O.
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Display 1995-1996 Eill Text - INFOR
BILL NUMBER I AS 1019
BILL TEXt
INTRODUCED BY Assembly Member Rainey
FEBRUARY 23, 1995
An act to add Artic16 1.5 (commencing with Section 6S30) to Chapter 5 of
Division 7 of Title 1 of the Government Code, and to add Section 143 to the
Streets and Highways COde, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AS 1019, as introduoed, Rainey. Transporcati,n: toll faoilities.
Under existing law, the Department of Transp6rtation is authorized to carry
out 4 demonstration projects by entering into agreements with private entities
for the construction by those entities of public transportation facilities and
to lease those facilities to the private entities for up to 35 years, after
which time the !acilities revert to the state. The ~greaments may contain
provi3ion3 authori%ing the charging of tolls for the use of the privately
constructed facilities.
This bill would authorize the Counties of Alameda, Contra Costa, and San
Joaquin, and the Cities of Antioch, Brentwood, DUblin, LAthrOp, Livermore,
Manteca, Pittsburg, Pleasanton, and Tracy to organize one or more joint
exercise of powers authorities to construct, manage, and operate toll
transportation facilitie! in the Counties of Alameda, Contra Costa, and San
Joaquin. The bill would specify the powers that could be exercised by the
joint exercise of powers authorities.
The bill would pt'ohibit.a joint exerehe of powers authority formed .
pursuant to the bill'trom"ideveloping tollways within the d.evelopment franchise
'area of agpec1f1ed Oompany .holdin9';a,franchise,undet' a development f:::-anchise
a9'reement~:w1th. the,;i1epe.t't:me'rit~"but . would authorize the joint exerc:ile of ,
powers:' authority ,,'to acquire 'any' party's' intenst in that development tranch1se
,'. agreement.
The bill would authorize ~ specified limited partnership to enter'1neo
agreements with the joint exercise of power! auth~rities tormed pursuant to
the bill to construct, operate, and manage toll bridges, toll roads, or major
toll facilities.
Votel majority. Appropriation: no. Fiscal committee I yes.
State-mandated local program: no.
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MAR-06-'95 MON 11:38 ID~NEY D.O.
TEL NO:510/93~
~108 P02
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Display 1995-1996 Bill Text - INFORMATION
BILL NUMBER; AB 1019
BILL TEXT
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature hereby finds and declares all of the following:
(a) The State of Calitornia and the Department of Transportation have
become increasingly un~ble to meec the cimef~emes end objectives contained in
the state transportation improvement progr~m (STIP) which depend! primarily on
the availability of adequate funding from traditional transportation revenue
sources. It is estimated that these revenues will fall far short of meeting
the current STIP, and therefore many projects will either be significantly
delayed or postponed indefinitely.
(b) The availability of significant additional public transportation
funding to keep pace wich California's growth and transportation
infrastructure needs will not be available in the near future.
(el The Legislature has considered, and therefore concluded, that given the
, transportation runding constraints, authority m~st now be extended to cities
~nd counties to authorize their direct partic:pation in public-private
partnerships, as owners or otherwise, in the development of toll
transportation f~cilities.
SEC. 2. Article 1.5 (commencing with Section 6530) is added to Chapter S of
Division 7 of Title 1 of the Government Code, to read:
Article 1.5. Toll Transportation Facilities
6530. The boards of supervisors for the counties of Alameda, Contra Costa,
and san Joaquin and the city councils of AntiOCh, Brentwood, Dublin, Lathrop,
Livermore, Manteca, Pittsburg, Pleasanton, and Tracy may, by ordinance,
organize one or more joint exercise of powers authorities to eonst=uct,
man~ge, and operate toll transportation facilities in the counties of Alameda,
Contra Costa, and san Joaquin. As used in this article, "construct" includes
design, acquisition of right-or-way, and actual construction, including all
direct and indireot environmental, engineering, accounting, legal,
administrative, and other services necessary therefor.
6530.2. Nothing in this article precludes a county, city, or any
combination thereof, from providing funds for the construction, maintenance
and operation Of toll transportation facilities constructed under a joint
exercise of powers authority.
6530.4, The joint exercise of powers authorities organized under this
article may do any of the following:
(al DevelOp, own, operate, and maintain public toll highways and cridges
constructed and maintained to the standards ~nd specifications of the
Department of Transportation.
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MA~~:~~.~ MON 11: 38 I D :.EY D. O. ....
TEL NO:510/933~
1:1108 P03
PAGE 3
Display 1995-1996 Bill Text - INFORMATION
BILL NUMBER I AB 1019
BILL TEXT
(bl Incur interest-bearing indebtedness secured by future toll revenue and
dedicated fees.
(c) Establish toll fees sufficient to provide for debt service.
maintenance, management, operationsl roy~lties and, a5 appropri$t8, local
BtreeCs and roads, publio transit improvements, and open-space programs.
(0) Enter into joint development agreements for toll transportation
tacilities.
6530.5. A joint exercise of powers agreement ~ay be modified pursuant to
notice and public hearing by the governing board of the joint powers
authority.
6530.b. Joint exercise of powers authorit1eS authorized by this ~rticle may
select any bridges, freeways. or major .thoroughtares in the counties of
Alameda, Contra Costa, and San Joaquin to develop as public tollways, 8Kcept
within the California Toll Road company development franchise ~rea, as defined
by the development franchise agreement dated January 4, 1991, entered into by
the Department of Transportation and the California Toll Road Development
Group, Limited partnership, pursuant to Section 143 of the Streets and
Highw~Y8 Code, Any toll transportation project selected by the joint powers
authOrity that falls within the geographical zona identified as the
development fr~nchiae ~rea in that development franchise agreement, shall be
subject to the provisions of that agreement between the ~xisting partie8.
Within that development franchise area, the joint exercise of powers ~uthority
is authorized to enter into agreements with eKisting p~rties to cha
development franohise agreement to acquire any party's interest in the
development franChise agreement. The terms of che agreement may include the
items enumerated in section 143.5.
SEC. 3. Section 143.5 is added to the Streets and Highways Code, to read:
143.5. (al The california Toll Road Development Group, Limited Partnership,
may enter into agreements with one or more joint exercise of powers
authorities established pursuant to Artiole 2.5 (commencing with Section 6575)
of Chapter 5 of Division 7 of Title 1 of the GOvernment Code to construct,
operate, and manage toll bridges, toll roads, or m~jor to~l facilities. The
termS of an agreement may include any of the tollowingl
(1) Compensation for work ~n progres$.
(2l provision of professional services for future development and
operation.
(3) Inoentives for exceptional performance.
(4) RetUrn for future value of the enterprise.
(b) The California Toll Road company development franchise area m~y be
sub~ivided with the concurrence of the department, the California Toll Road
Oevelopment Group, Limited partnership, and the joint exeraise of powers
authority.
(c) The department may be a party to any agreement pursuant to this section
to do any of the following:
(1) AsSure the etate's interest in the design, construction, operation, and
maintenance of toll facilities designated as part of the state highway system.
(2) Provide for tort liability.
(3) Ensure consistency o~ electronic toll revenue technologies.
(4) Maintenance of covenants in the development agreement! entered intO
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MAR...-0_6- ~_95 __I:l.Q~~ J1..:..;1~.. I~NEY D. O.
Di~play i995-l996 Bill Text - INFORMATION
BILL NUMBER: AB 1019
BILL TEXT
under Section 143.
TEL NO:S10/93341t4
1:l108 P04
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March 23, 1995
Assemblyman Richard Rainey
P. O. Box 4893
Walnut Creek CA 94596
SUBJECT: Assembly Bill 1019
Dear Assemblyman Rainey:
The City Council of the City of Dublin has reviewed Assembly Bill 1019, which authorizes certain public
entities, including the City of Dublin, to form a joint powers authority to construct and operate a public
toll road. The Council supports the concept of public toll roads and adopted Resolution No. _-95
evidencing such support.
AB 1019 would authorize the construction of toll roads, such as State Route 84. However, as presently
drafted, the bill would require the public joint powers authority to compensate the California Toll Road
Company or its costs, which are unknown to the City, in order to construct a toll road along State Route
84. We recognize that the California Toll Road Company has a financial investment in planning for
construction of a private toll road along State Route 84 and that the Company is required to commence
construction by January 1, 2004, or its franchise agreement with the State terminates. At the same time,
we believe it is in the public's interest that public entities be given the opportunity to investigate and plan
for construction of a public toll road along State Route 84 so that the public entities are in a position to
construct a public toll road if the Company's efforts to construct a private toll road are not successful. If
your bill were amended to (1) make it clear that no compensation shall be payable following termination
of the original agreement between the California Toll Road Company and the State and (2) allow the
jurisdictions to proceed to create a JPA and perform environmental and engineering work prior to January
1, 2004, at their own risk and without payment of compensation to the California Toll Road Company, the
City of Dublin would be able to support your bill.
Our City Staff, would be available to work with your staff on suggested wording changes, if you so desire.
Thank you for your consideration.
Sincerely,
Guy Houston
Mayor
cc: City of Pleasant on
City of Livermore
Alameda County
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