HomeMy WebLinkAboutLegislative Review - AB 850 (Canciamilla) Toll RoadsCITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE
ACTION ON AB 850 (CANCIAMILLA) AT ITS MEETING OF
MARCH 22, 2005
DATE: April 14, 2005
CONTENTS: AB 850 Language
Recommendation:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of March 22, 2005, and direct staff to prepare a letter of opposition for the Mayor's
signature with regard to AB 850 (Canciamilla) relative to toll roads.
Executive Summary:
Passage of AB 850 would authorize the State Department of Transportation to enter into
agreements for the operation of toll roads within the State of California.
Background:
Current law provides that until January 1, 2003, the State Department of Transportation
was authorized to solicit proposals and enter into agreements with private entities or
consortia for the construction and lease of no more than two toll road projects within the
State. AB 850 would authorize the Department to enter into comprehensive development
franchise agreements with public and private entities or consortia for certain types of
transportation projects and would authorize tolls to be collected after the termination of the
franchise agreement period, subject to approval of the California Transportation
Commission. This bill would also require franchise agreements to allow the Department
of Transportation to acquire by condemnation or negotiation the financial value of a
competing toll facility if the Department opens a competitive State facility in the same
corridor.
The manner in which current franchise agreements for the use of toll roads within the State
are administered does not benefit residents and guests who travel certain roads on an
infrequent basis, since use is limited to vehicles with issued transponders. Fees collected
for use of toll roads in whatever form would only service and maintain specific and limited
highways where toll roads are constructed. It seems that the State's residents and visitors
would be better served in this regard by the State Legislature using the funds specified by
the State Constitution for the building, maintenance, and repair of public roadways rather
than attempting to divert designated monies to the general fund to pay off existing debts
through the sale and use of transponders. Therefore, the Legislative Review Committee
recommends that the City Council oppose AB 850 and direct staff to prepare a letter
stating that position to appropriate legislators for the Mayor's signature.
PATRICIA SCULLY, CFEE
SENIOR MANAGEMENT ANALYST
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/SHEILA R. GILLIGAN
ASSISTANT CITY MA ER/PIO
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PAUL S. UIBSON
DIR OF FINANCE/CITY TREASURER
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CARLOS L. OeEGA
CITY MANAGER
AB 850 Assembly Bill - INTRODUCED
Pagel of 3
k BILL NUMBER: AB 850 INTRODUCED
BILL TEXT
INTRODUCED BY. Assembly Member Canciamilla
(Principal coauthor: Assembly Member Benoit)
(Principal coauthor: Senator Runner)
FEBRUARY 18, 2005
An act to amend Section 143 of the Streets and Highways Code,
relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 850, as introduced, Canciamilla. Toll road agreements.
Existing law, until January 1, 2003, authorized the Department of
Transportation to solicit proposals and enter into agreements with
private entities or consortia for the construction and lease of no
more than 2 toll road projects, and specified the terms and
requirements applicable to those projects.
This bill would instead authorize the department to enter into
comprehensive development franchise agreements with public and
private entities or consortia for specified types of transportation
projects, as defined, subject to certain requirements and conditions.
The bill would authorize tolls to be collected after the termination
of a franchise agreement period, subject to approval of the
California Transportation Commission. The bill would require a
franchise agreement to allow the department to acquire by
condemnation or negotiation the financial value of a competing toll
facility if the department opens a competitive state facility in the
same corridor. The bill would enact other related provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State -mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 143 of the Streets and Highways Code is
amended to read:
143. (a) -Zho— Pursuant to Chapter 3
(commencing with Section 30800) of Division 17, the department
may solicit proposals , negotiate, and enter into
comprehensive development franchise agreements with public
and private entities, or consortia thereof, for the
construction 1-1, _ ^ 4 1 a&&- +^ y ^+^ ^{-' +; ^ of
transportation --cl�T ^ 4-4-- im;
projects. mh—:I;Q ^r+-^^.+ ,, „^+
F..r.
Z403.- As used in this section, " �7
transportation projects n means (1) shared
high -occupancy vehicle (HOV) lanes where HOVs are permitted free
passage, (2) dedicated exclusive truck lanes, (3) mixed -flow toll
lanes and free lanes, and (4) toll lanes for all vehicles
other than HOVs .(b) For the purpose of facilitating those
transportation projects, the agreements between the
parties may include provisions for limiting the department
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AB 850 Assembly Bill - INTRODUCED Page 2 of 3
from initiating the opening to traffic of new competing state �+
highway facilities within the same transportation corridor, for
the lease of rights -of -way in, and airspace over or under,
these state highways, for the granting of necessary easements,
and for the issuance of permits or other authorizations to enable
t4 ^+., .,+; ty + the
construction of transportation facilities supplemental to
existing state-owned and operated transportation
facilities. Facilities constructed by
an entity pursuant to an agreement under this
section shall, at all times, be owned by the -st.—"
department as an operational part of the state highway system
. The agreement shall provide for the lease of those facilities
to the-griwate franchised entity for
up to 35 years to recover private investments in the form of
expended funds together with a reasonable rate of return on those
funds, negotiated by the department with the contracting
entity . In consideration therefor, the agreement shall provide
for complete reversion of the privately constructed facility
and the right to collect tolls to the-,statc
department and any other government entity participating in the
funding of the project, if any, at the expiration of the lease
at no charge to the ^+^}^ department or other
governmental entity -
(c) The department may exercise any power possessed by it with
respect to the development and construction of state transportation
projects to facilitate the development and construction of
transportation toll projects initiated pursuant
to this section. Agreements for maintenance and police services
entered into pursuant to this section
may provide for F••" some form of
negotiated reimbursement for services rendered by the
department and other state agencies.
The department may provide services for which it is reimbursed with
respect to preliminary planning, environmental certification and
review ,--axcd- preliminary design ,
design, right - of - way
acquisition, and construction of
these transportation projects.
(d) (1) Agreements entered into pursuant to this section shall
authorize the -p=i wa;e contracting
entity to impose tolls for use of a facility constructed by it, and
shall require that over the term of the -1i:6w
franchise, that the toll revenues will be applied
to payment of some or all of the
capital outlay costs for the project, the costs associated
with operations, toll collection, administration of the facility,
reimbursement to the -}^}^ department or
other governmental entity for the costs of ^}sRaa$c
a4; -- services to develop and maintain the project,
police services, and a reasonable return on investment to the
private entity. The agreement shall require that any excess toll
revenue either be applied to any indebtedness incurred by the private
entity with respect to the project or be paid into the State Highway
Account, or both.
(2) The - . . . 1- -, }y `a -select•- collection of
tolls for the use of these facilities ^1_^^11 4 ^ 4^^4-9
may be extended by the commission at the
expiration of the franchise agreement.
(e) The plans and specifications for each transportation
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AB 850 Assembly Bill - INTRODUCED
Page 3 of 3
: project constructed pursuant to this section shall comply with
the department's then -existing standards for similar
state transportation projects. A facility constructed by and
leased to - F- -} s�— another entity
shall, during the term of the lease, be deemed to be a part of the
state highway system for purposes of identification, maintenance,
enforcement of traffic laws, and for the purposes of Division 3.6
(commencing with Section 810) of Title 1 of the Government Code.
(f) The assignment authorized by subdivision (c) of Section 130240
of the Public Utilities Code is consistent with this section.
(g) Each franchise agreement entered into by the department shall
include provisions authorizing the department to open competitive
facilities to traffic within the designated corridor subject to the
department exercising its police power to either acquire by
condemnation or negotiation the remaining net fair market capitalized
value of the toll franchise period equivalent to the projected lost
annual income for the remaining term of the competition protection
afforded by that agreement. The annual payments shall be determined
by a projection of the average increase of net income over the
previous five years of tolled operations, or less than five years if
there have not been a full five years of consecutive operations of
the facility. To the extent that the toll facility does not suffer a
loss of net income equivalent to that projected in each year, the sum
paid at the end of that fiscal year on June 30 shall be adjusted so
that the department's payments are reduced accordingly.
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