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HomeMy WebLinkAbout8.2 TollRoaddFacility e . 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~ e e 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. g: Icorreslmslagsttoll Page 2 e e 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. \ e e 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 g: Icorres\ms Iresolol/ MAR-06-'95 MON 11:37 ID:RAINEY D.O. e e 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. ,I I I ," , _._,~-,~~..~--~.- . '.~ . . -" . --;., ~. . ", --.'.. "" ,..- ..... --,.., .,. i I i i 1 ~j t-o' ,- CD ........ :c X LLi ,-::-.T;'~:'".--.-;-_.- MAR-06-'95 MON 11:38 ID~NEY D.O. TEL NO:510/93~ ~108 P02 ~E 2 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. i 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 ~ 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 PAGE 4 e e 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 g: Icorreslmslt/rd/tr