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TRANSPORTATION, WATER & INFRASTRUCTURE COMMITTEE

Meeting Date:	08/14/2017
Subject: Senate Bill 595 (Beall) Regional Measure 3 - Bridge Toll Increase
Submitted For:	TRANSPORTATION, WATER & INFRASTRUCTURE COMMITTEE
Department:	Conservation & Development
Referral No.:	1
Referral Name:	1: Review legislative matters on transportation, water, and infrastructure.
Presenter:	John Cunningham, 674-7833	Contact:	John Cunningham (925) 674-7833

Information

Referral History:

Senate Bill 595/Regional Measure 3 was discussed at TWIC during the July meeting. At the time the Committee declined to provide a recommendation to the Board of Supervisors (BOS) given the lack of an associated expenditure plan in addition to the general lack of detail in the still evolving bill.

Staff has brought the bill back for consideration by TWIC given: 1) new information now included in the bill, and 2) the substantial work conducted by the Contra Costa Transportation Authority in lobbying for increased expenditures (reflecting a reasonable nexus) in Contra Costa.

Referral Update:

Background
The Metropolitan Transportation Commission (MTC) is considering a regional bridge toll increase on the seven state-owned bridges* in the Bay Area. The proposed Regional Measure 3 (RM3) is expected to raise tolls by $1 to $3. For every $1 in tolls, approximately $127 million per year is estimated to be generated in revenue. Revenues generated by the toll increase are expected to fund projects that demonstrate a strong nexus to reducing congestion and increasing efficiency in the bridge corridors.

The RM3 proposal requires authorizing legislation. Senate Bill 595 (SB595 - Beall) has been introduced that would authorize MTC to conduct a special election to request that voters in the nine Bay Area Counties to approve the toll increase. In preparation, The Contra Costa Transportation Authority (CCTA) submitted a list of Contra Costa projects to MTC for potential funding by RM3 early in the process. CCTA has submitted a revised list as discussed in the update section below.

The bill would require the City and County of San Francisco and the other 8 counties in the San Francisco Bay area to conduct a special election on a proposed unspecified increase in the amount of the toll rate charged on the state-owned toll bridges in that area to be used for unspecified projects and programs. By requiring this election, the bill would impose a state-mandated local program. The bill would require the Bay Area Toll Authority (BATA) to reimburse from toll revenues, as specified, the counties and the City and County of San Francisco for the cost of submitting the measure to the voters.

August Update
Up until the summer recess on July 21st, there was rapid movement on the bill. Mark Watts will be present at the August TWIC meeting to walk the Committee through the various issues that have arisen. In summary, 1) the bill has been substantially revised, and 2) both the Alameda County Transportation Commission (ACTC) and the Contra Costa Transportation Authority (CCTA) have raised significant issues with the expenditure plan in the newly revised bill and have called for amendments.

Given that the bridge toll is a fee (as opposed to a tax) there needs to be a reasonable nexus between expenditures, the source of the revenue, and bridge travel. Both the ACTC and CCTA have produced material making recommendations to the Legislature advocating for a stronger nexus which would benefit the East Bay Counties. The CCTA material is attached (CCTA - SB 595_Letter.pdf) and Mr. Watts will discuss the significance of the information and the status of negotiations. The Alameda County material is also attached.

Of Specific Interest to the County: The Vasco-Byron Highway Connector was included in early CCTA RM3 project lists. The CCTA emphasis to the legislature on a stronger nexus to between toll payers and bridge travel relative to project expenditures could result in increased funding for East Bay projects in general. However, this nexus emphasis results in the Vasco-Byron Connector falling off the list due to a limited relationship between the project and the bridge travel generating the revenue.

Status/Location: Assembly Appropriations Committee

Bill Analysis: In contrast to the state legislative analysis provided to TWIC in July (included below for reference) indicating the bill is a "work in progress", the current/attached analysis (7-12-17 SB 595 Analysis Assembly Transportation) indicates SB 595 now includes substantial new detail. In summary, the bill now includes: expenditure plan, requires the Bay Area Toll Authority to report to the Legislature, details processes/procedures/performance measures, etc.

Analysis Provided to TWIC in July
The latest analysis is attached (5-27-17 SB595 Senate Floor Analyses) and indicates the bill is a "work in progress" stating that the following are not yet specified: 1) the
amount of the toll increase, 2) the projects/programs, and 3) which general election the measure would be placed on the ballot. Other commentary of note: Projects funded by toll revenues must have a nexus to the bridges in order to remain a fee rather than a tax (which would require 2/3 voter approval).

Attached Letter
The attached draft letter communicates concerns with the lack of equity relative to toll payers and benefits of the proposed projects and references the CCTA proposal to be included in the bill.

Other Information
Attached is an editorial from the East Bay Times discussing the bill, "Troubling plan for $3 Bay Area bridge toll hike" and an SF Gate article, "Bay Area bridges see dramatic increase in early morning congestion" which includes MTC data regarding increases in bridge travel and congestion.

Recommendation(s)/Next Step(s):

CONSIDER recommending the Board of Supervisors AUTHORIZE a letter to the Assembly Appropriations Committee and the County's delegation communicating concerns and proposed amendments relative to Senate Bill 595 (Beall): Metropolitan Transportation Commission: Bridge Tolls

Fiscal Impact (if any):

None to the General Fund. The bill would require the Bay Area Toll Authority (BATA) to reimburse from toll revenues, as specified, the counties and the City and County of San Francisco for the cost of submitting the measure to the voters.

Attachments
7-12-17 SB 595 Analysis Assembly Transportation
Editorial_ Troubling plan for $3 Bay Area bridge toll hike.pdf
SB 595 (RM3) Bill Text as amended 7-19-17
CCTA - SB 595_Letter and Analysis
ACTC Proposed_sB595 revisions
Bay Area bridges see dramatic increase in early morning congestion - SFGate
Draft Support Letter for SB595