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AGENDA STAFF REPORT `e m_Zl
C OFORNy \P! i
DATE: April 10, 2017
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Patrick Gallegos, Assistant City Manager
SUBJECT: LEGISLATIVE ADVOCACY: SENATE BILL 264
SUMMARY OF REQUEST:
That the City Council approve and authorize the Mayor to execute Resolution No.
6721 in support of Senate Bill (SB) 264, relating to the use of revenues from
high- occupancy toll lanes.
BACKGROUND AND ANALYSIS:
According to the Orange County Transportation Authority, traffic along Interstate
405 (1 -405) corridor (between State Highway Route 73 and Interstate 605) is
expected to grow approximately 35 percent by 2040. To relieve congestion, toll
lanes are scheduled to be built along this corridor.
While the toll lane project will provide additional lanes on the 1 -405 freeway, it will
also result in additional traffic on Seal Beach's arterial streets and roads. In order
to maintain the safety of our streets, it is imperative that the City receive a portion
of the net excess toll revenues to be used towards transportation improvements
to accommodate growing traffic demand, relieve congestion, and improve overall
mobility.
SB 264 provides an equitable solution that benefits all stakeholders that will be
impacted by the project. Additionally, this legislation is consistent with the
adopted 405 express lane toll policy by the Orange County Transportation
Authority to ensure that any potential net excess toll revenues are used for 1 -405
corridor improvements. SB 264 is a fair solution that benefits the cities along the
direct project corridor, cities and portions of the County that border the project
corridor and the Orange County Transportation Authority.
State Senator Janet Nguyen has requested the City's support of SB 264 to
ensure that any net excess toll revenue is fairly distributed among the
communities impacted by the project's construction.
Agenda Item A
ENVIRONMENTAL IMPACT:
There is no environmental impact related to this item.
LEGAL ANALYSIS:
The City Attorney has reviewed the proposed resolution and approved as to
form.
FINANCIAL IMPACT:
There is no fiscal impact associated with this action.
RECOMMENDATION:
That the City Council approve and authorize the Mayor to execute Resolution No.
6721 in support of Senate Bill (SB) 264, relating to the use of revenues from
high- occupancy toll lanes.
SUBMITTED BY:
octljj_ __
Patrick Gallegos
Assistant City Manager
Attachments:
A. Senate Bill 264
B. Resolution 6721
C. Support Letter
Page 2
NOTED AND APPROVED:
® W. Ingram
City Manager
"Attachment A"
California- 2017- SB264- Introduced Page 1 of 5
CALIFORNIA LEGISLATURE— 2017 -2018 REGULAR SESSION
SENATE BILL No. 264
Introduced by Senator Nguyen
February 08, 2017
An act to amend Section 149.7 of the Streets and Highways Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
SB 264, as introduced, Nguyen. High - occupancy toll lanes.
Existing law provides that the Department of Transportation has full possession and control of the
state highway system. Existing law authorizes a. regional transportation agency or the department to
apply to the California Transportation Commission to develop and operate high - occupancy toll (HOT)
lanes or other toll facilities. Existing law defines "regional transportation agency' for these purposes
to include, among other agencies, a county transportation commission established under the County
Transportation Commissions Act.
This bill would instead refer to a county transportation commission or authority established under that
act.
Digest Key
Vote: majority Appropriation: no Fiscal Committee: no Local Program: no
Bill Text
THE PEOPLE OF THE STATE OF CALIFORNIA DO
ENACT AS FOLLOWS:
SECTION 1. Section 149.7 of the Streets and Highways Code is amended to read:
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149.7. (a) Notwithstanding Sections 149 and 30800, a regional transportation agency, as defined in
subdivision (k), or the department may apply to the commission to develop and operate high -
occupancy toll lanes or other toll facilities, including the administration and operation of a value
pricing program and exclusive or preferential lane facilities for public transit or freight.
(b) Each application for the development and operation of the toll facilities described in subdivision
(a) shall be subject to review and approval by the commission pursuant to eligibility criteria set forth
in guidelines established by the commission. Prior to approving an application, the commission shall
conduct at least one public hearing at or near the proposed toll facility for the purpose of receiving
public comment. Upon approval of an application, the regional transportation agency or the
department may develop and operate the toll facility proposed in the application.
(c) The eligibility criteria set forth in the guidelines established by the commission pursuant to
subdivision (b) shall include, at a minimum, all of the following:
(1) A demonstration that the proposed toll facility will improve the corridor's performance by, for
example, increasing passenger throughput or reducing delays for freight shipments and travelers,
especially those traveling by carpool, vanpool, and transit.
(2) A requirement that the proposed toll facility is contained in the constrained portion of a
conforming regional transportation plan prepared pursuant to Section 65080 of the Government Code.
(3) Evidence of cooperation between the applicable regional transportation agency and the
department.
(4) A discussion of how the proposed toll facility meets the requirements of this section.
(5) A requirement that a project initiation document has been completed for the proposed toll facility.
(6) A demonstration that a complete funding plan has been prepared.
(d) A regional transportation agency that applies to the commission to develop and operate toll
facilities pursuant to this section shall reimburse the commission for all of the commission's costs and
expenses incurred in processing the application.
(e) Tall facilities approved by the commission on or after January 1, 2016, pursuant to this section,
shall be subject to the following minimum requirements:
(1) A regional transportation agency sponsoring a toll facility shall enter into an agreement with the
Department of the California Highway Patrol that addresses all law enforcement matters related to the
toll facility and an agreement with the department that addresses all matters related to design,
construction, maintenance, and operation of the toll facility, including, but not limited to, liability,
financing, repair, rehabilitation, and reconstruction.
(2) A regional transportation agency sponsoring a toll facility shall be responsible for reimbursing the
department and the Department of the California Highway Patrol for their costs related to the toll
facility pursuant to an agreement between the agency and the department and an agreement between
the agency and the Department of the California Highway Patrol.
(3) The sponsoring agency shall be responsible for establishing, collecting, and administering tolls,
and may include discounts and premiums for the use of the toll facility.
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(4) The revenue generated from the operation of the toll facility shall be available to the sponsoring
agency for the direct expenses related to the following:
(A) Debt issued to construct, repair, rehabilitate, or reconstruct any portion of the toll facility,
payment of debt service, and satisfaction of other covenants and obligations related to indebtedness of
the to] I facility.
(B) The development, maintenance, repair, rehabilitation, improvement, reconstruction,
administration, and operation of the toll facility, including toll collection and enforcement.
(C) Reserves for the purposes specified in subparagraphs (A) and (B).
(5) All remaining revenue generated by the toll facility shall be used in the corridor from which the
revenue was generated pursuant to an expenditure plan developed by the sponsoring agency, as
follows:
(A) (i) For a toll facility sponsored by a regional transportation agency, the regional transportation
agency shall develop the expenditure plan in consultation with the department.
(ii) For a toll facility sponsored by the department, the department shall develop the expenditure plan
in consultation with the applicable regional transportation agency.
(B) (i) For a toll facility sponsored by a regional transportation agency, the governing board of the
regional transportation agency shall review and approve the expenditure plan and any updates.
(ii) For a toll facility sponsored by the department, the commission shall review and approve the
expenditure plan and any updates.
(6) The sponsoring agency's administrative expenses related to operation of a toll facility shall not
exceed 3 percent of the toll revenues.
(t) For any project under this section involving the conversion of an existing high - occupancy vehicle
lane to a high - occupancy toll lane, the sponsoring agency shall demonstrate that the project will, a( a
minimum, result in expanded efficiency of the corridor in terms of travel time reliability, passenger
throughput, or other efficiency benefit.
(g) This section shall not prevent the construction of facilities that compete with a toll facility
approved by the commission pursuant to this section, and the sponsoring agency shall not be entitled
to compensation for the adverse effects on toll revenue due to those competing facilities.
(h) A sponsoring agency that develops or operates a toll facility pursuant to this section shall provide
any information or data requested by the commission or the Legislative Analyst. The conunission, in
cooperation with the Legislative Analyst, shall annually prepare a summary report on the progress of
the development and operation of any toll facilities authorized pursuant to this section. The
commission may submit this report as a section in its annual report to the Legislature required
pursuant to Section 14535 of the Government Code.
(i) (1) A regional transportation agency may issue bonds, refunding bonds, or bond anticipation notes,
at any time, to finance construction of, and construction - related expenditures for, a toll facility
approved pursuant to this section, and construction and construction- related expenditures that are
included in the expenditure plan adopted pursuant to paragraph (5) of subdivision (e), payable from
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the revenues generated from the toll facility. The bonds, refunding bonds, and bond anticipation notes
shall bear such interest rates and other features and terms as the regional transportation agency shall
approve and may be sold by the regional transportation agency at public or private sale.
(2) A bond, refunding bond, or bond anticipation note issued pursuant to this subdivision shall contain
on its face a statement to the following effect:
"Neither the full faith and credit nor the taxing power of the State of California is pledged to the
payment of principal of, or the interest on, this instrument."
(3) Bonds, refunding bonds, and bond anticipation notes issued pursuant to this subdivision are legal
investments for all trust funds, the funds of all insurance companies, banks, trust companies,
executors, administrators, trustees, and other fiduciaries.
(4) Interest earned on any bonds, refunding bonds. and bond anticipation notes issued pursuant to this
subdivision shall at all times be free from state personal income tax and corporate income tax.
(5) (A) For a toll facility operated by the department, the California Infrastructure and Economic
Development Bank or the Treasurer may issue bonds, refunding bonds, or bond anticipation notes, at
any time, to finance development, construction. or reconstruction of, and construction- related
expenditures for, a toll facility approved pursuant to this section and construction and construction -
related expenditures that are included in the expenditure plan adopted pursuant to paragraph (5) of
subdivision (e), payable solely from the toll revenue and ancillary revenues generated from the toll
facility.
(B) This subdivision shall be deemed to provide all necessary state law authority for purposes of
Section 63024.5 of the Government Code.
0) (1) Before submitting an application pursuant to subdivision (a), a regional transportation agency
shall consult with every local transportation authority designated pursuant to Division 12.5
(commencing with Section 13 1000) or Division 19 (commencing with Section 180000) of the Public
Utilities Code and every congestion management agency whose jurisdiction includes the toll facility
that the regional transportation agency proposes to develop and operate.
(2) A regional transportation agency shall give a local transportation authority or congestion
management agency described in paragraph (1) the option to enter into agreements, as needed, for
project development, engineering, financial studies, and environmental documentation for each
construction project or segment that is part of the toll facility. The local transportation authority or
congestion management agency may be the lead agency for these construction projects or segments.
(k) Notwithstanding Section 143, for purposes of this section, `regional transportation agency" means
any of the following:
(1) A transportation planning agency described in Section 29532 or 29532.1 of the Government Code.
(2) A county transportation commission or authority established under Section 130050, 130050.1, or
130050.2 of the Public Utilities Code.
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(3) Any other local or regional transportation entity that is designated by statute as a regional
transportation agency.
(4) A joint exercise of powers authority established pursuant to Chapter 5 (commencing with Section
6500) of Division 7 of Title I of the Government Code, with the consent of a transportation planning
agency or a county transportation commission for the jurisdiction in which the transportation project
will be developed.
(5) The Santa Clara Valley Transportation Authority established pursuant to Part 12 (commencing
with Section 100000) of Division 10 of the Public Utilities Code.
(1) A regional transportation agency or the department may require any vehicle accessing a toll facility
authorized under this section to have an electronic toll collection transponder or other electronic
device for enforcement or lolling purposes.
(m) Nothing in this section shall authorize or prohibit the conversion of any existing nontoll or
nonuser -fee lanes into tolled or user -fee lanes, except that a high - occupancy vehicle lane may be
converted into a high - occupancy toll lane.
(n) Nothing in this section shall apply to, modify, limit, or otherwise restrict the authority of any joint
powers authority described in Section 66484.3 of the Government Code to establish or collect tolls or
otherwise operate any toll facility or modify, or expand a toll facility.
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I
Attachment �, su
m
RESOLUTION NUMBER 6721
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH, IN SUPPORT OF SB 264, RELATING TO THE USE OF
REVENUES FROM HIGH OCCUPANCY TOLL LANES
WHEREAS, traffic along 1 -405 corridor is expected to grow approximately 35
percent by 2040; and
WHEREAS, to relieve congestion, toll lanes are scheduled to be built along the
1 -405 corridor (between State Highway 73 and 1 -605); and
WHEREAS, cities along the 1 -405 corridor are expected to have additional traffic
on arterial streets and roads; and
WHEREAS, SB 264 proposed by Senator Janet Nguyen would ensure that any
potential net excess revenues are fairly distributed among the
communities impacted by the 1 -405 high occupancy toll lanes
project.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Seal
Beach hereby:
Section 1. The City Council supports the passage of SB 264.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal
Beach on this 10 day of _April , 2017 by the following vote:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
Sandra Massa - Lavitt, Mayor
ATTEST:
Robin L. Roberts, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Robin L. Roberts, City Clerk of Seal Beach, California, do hereby certify that
the foregoing resolution is the original copy of Resolution Number 6721 on
file in the office of the City Clerk, passed, approved, and adopted by the City
Council of the City of Seal Beach, at a regular meeting thereof held on the 10th
day of _April , 2017.
Robin L. Roberts, City Clerk
Attachment "C"
April 5, 2017
The Honorable Janet Nguyen
California State Senate
State Capitol, Room 3048
Sacramento, CA. 95814
Subject: Support SB 264 — High- occupancy toll lanes
Dear Senator Nguyen,
On behalf of the City of Seal Beach, I am writing to express our support for SB 264, which will
ensure that net excess toll revenues in Orange County, on Interstate 405 between State
Highway Route 73 and Interstate 605 will be fairly distributed among the communities impacted
by the project's construction.
Since your time as a County Supervisor and as a Director on the Orange County Transportation
Authority, you have been a strong advocate of protecting your cities and ensuring that we have
a seat at the table. We appreciate your leadership to ensure that our City receives its fair share
of the net excess toll revenues to be used to mitigate road wear to streets within three miles of
the Interstate 405 Improvement project. According to the Orange County Transportation
Authority, traffic along the corridor is expected to grow approximately 35 percent by 2040. While
the toll lane project will provide additional lanes on the 1 -405 freeway, it will also result in
additional traffic on our arterial streets and roads. In order to maintain the safety of our streets, it
is imperative that we receive a portion of the net excess toll revenues to be used towards
transportation improvements to accommodate growing traffic demand, relieve congestion, and
improve overall mobility.
SB 264 provides an equitable solution that benefits all stakeholders that will be impacted by the
project. Additionally, this legislation is consistent with the adopted 405 express lane toll policy by
the Orange County Transportation Authority to ensure that any potential net excess toll
revenues are used for 1 -405 corridor improvements. Your legislation creates a fair solution that
benefits the cities along the direct project corridor, cities and portions of the County that border
the project corridor and the Orange County Transportation Authority.
We appreciate you understanding our concerns and advocating for us by introducing legislation
that will create an equitable solution while addressing the needs of those cities that will be
directly impacted by this project. For these reasons, the City of Seal Beach is proud to support
SB 264.
Sincerely,
Sandra Massa - Lavitt
Mayor