SOUTH GATE CITY COUNCIL
REGULAR MEETING AGENDA
Tuesday, June 13, 2023 at
6:30 p.m.
AMENDED
SOUTH GATE COUNCIL CHAMBERS
8650 CALIFORNIA AVE
SOUTH GATE, CA 90280
DIAL-IN-NUMBER: 1 (669) 900-6833
MEETING ID: 817 3164 9857
HTTPS://US02WEB.ZOOM.US/J/81731649857
Call to Order/Roll Call With Invocation & Pledge
CALL TO ORDER:
Maria del Pilar Avalos, Mayor
INVOCATION:
Steve Costley, Acting Director of Parks and Recreation
PLEDGE OF ALLEGIANCE:
Meredith Elguira, Director of Community Development
ROLL CALL:
Yodit Glaze, City Clerk
City Officials
MAYOR CITY CLERK
Maria del Pilar Avalos Yodit Glaze
VICE MAYOR CITY TREASURER
Gil Hurtado Jose De La Paz
COUNCIL MEMBERS CITY MANAGER
Joshua Barron Chris Jeffers
Maria Davila
Al Rios
CITY ATTORNEY
Raul F. Salinas
1 Meeting Schedule
The regular meetings of the City Council are held on the second and fourth Tuesday of each month, closed session business will usually commence at 5:30 p.m., when scheduled, and general business session will commence at 6:30 p.m.
Brown Act
Agendas are drafted to accurately state what the legislative body is being asked to consider. The legislative body can take action on "all items" listed on the agenda and be in compliance with the open meeting laws. Under the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The governing body may direct staff to investigate and/or schedule certain matters for consideration at a future meeting.
City's Vision Statement
We envision a thriving, safe and inclusive community where everyone has the opportunity to access exceptional services, education and support to be resilient and live full, vibrant lives.
Public Communications
Public Comments on agenda items are limited to three (3) minutes. All comments are to be addressed directly to the Agency Members not to the members of the public.
Emails for public comment received prior to 12pm on the day of the Council Meeting will be summarized by the City Clerk, not read in its entirety. A copy of the email will be provided to the City Council and will also be available at the City Clerk's Office for public review. A copy of each email will be recorded for public record and noted on the official minutes of tonight's meeting.
Meeting Compensation Disclosure
Pursuant to Government Code Section 54952.3: Disclosure of compensation for meeting attendance by City Council Members is $790 monthly regardless of the amount of meetings.
Public Hearings
1. Resolution ordering the Levy and Collection of Assessments for FY 2023/24 for Parking and Business Improvement Area Business License
Following the conclusion of the Public Hearing, the City Council will consider adopting a Resolution
ordering the levy and collection of assessments for Fiscal Year 2023/24 for the Parking and Business Improvement Area (known as the Tweedy Mile Business District) Business License, as permitted by the Parking and Business Improvement Area Law of 1989 (California Streets And Highways Code Section 36500 et seq.). (CM) Documents:
Item 1 Report 06132023.pdf
2 Comments From The Audience - Non-Agenda Items
During this time, members of the public may address the City Council regarding any items not listed on the agenda and within the subject matter jurisdiction of the City Council and not on this agenda. Comments from the audience will be limited to three (3) minutes per speaker; unless authorized by the Mayor, the time limit may not be extended by utilizing another member's time. There will be no debate or action on items not listed on the agenda unless authorized by law. The collective initial period of time for comments from the audience shall be limited to 45 minutes. Any speaker that did not get a chance to speak during this segment due to the 45-minute limitations will be able to speak at the end of the meeting prior to adjournment.
Note: The City Council desires to provide all members of the public with the opportunity to address the Council. Nevertheless, obscene language, comments intended to disrupt/interfere, other actions which disrupt the progress of the meeting or slanderous comments will not be tolerated and may result in ejection and/or may constitute a violation of South Gate Municipal Code Section1.04.110.
Reports And Comments From City Officials
During this time, members of the City Council will report on matters pertaining to their service on various intergovernmental boards and commissions as a representative of the City pursuant to Assembly Bill 1234. City Council Members will also have an opportunity to comment on matters not on the agenda.
Consent Calendar Items
Agenda Items
2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12
and
13 are Consent Calendar Items. All items
including Ordinances, Resolutions and Contracts, may be approved by adoption of the Consent Calendar, individually and collectively by one (1) motion. There will be no separate discussion of these items unless Members of the City Council, the public, or staff request that specific items be removed from the Consent Calendar for separate discussion and action.
Members of the public are permitted to speak on any item listed but their time period is limited to three (3) minutes in total.
Any motion to introduce or adopt an Ordinance on the Consent Calendar shall be: (1) a motion to waive the reading of the Ordinance and introduce the Ordinance or (2) a motion to waive the reading of the Ordinance and adopt the Ordinance, as appropriate.
2. Ordinance No. 2023-03-CC repealing Chapter 6.42 (Smoking prohibited in all city owned, city-operated and city-controlled buildings and vehicles, and at each municipal park) and adding new Chapter 6.42 (Smoking Prohibited) and additional Sections to the South Gate Municipal Code
The City Council will consider waiving the reading in full and adopting Ordinance No.
2023-03-CC
repealing Chapter 6.42 (Smoking prohibited in all city owned, city-operated and city-controlled buildings and vehicles, and at each municipal park) in its entirety and adopting new Chapter 6.42 (Smoking Prohibited) and Sections 6.42.010 (Purpose),
6.42.020 (Definitions), 6.42.030 (Posting of signs required), 6.42.040 (Enforcement) and
6.42.050 (Other applicable laws) to the South Gate Municipal Code. (CM) 3 Documents:
Item 2 Report 06132023.pdf
3. Ordinance No. 2023-02-CC authorizing an amendment to the contract between the City and the California Public Employees Retirement System (CALPERS) implementing Section 20516 (Employees Sharing Additional Cost) to provide employee cost sharing of 1% for local miscellaneous members in the SGMEA, SGPMMA, and SGDMA and 1% for classic local police members in the SGPOA beginniing Fiscal Year 2023-24.
The City Council will consider waiving the reading in full add adopting Ordinance No.
2023-02-CC
authorizing an amendment to the contract between the City and the Board of Administration of the California Public Employees' Retirement System implementing Section 20516 (Employees Sharing Additional Cost) to provide employee cost sharing of 1% for local miscellaneous members in the South Gate Municipal Employees Association, South Gate Professional Mid-Management Association, and South Gate Division Management Association, and 1% for classic local police members in the South Gate Police Officers Association beginning Fiscal Year 2023-24. (ADMIN SVCS) Documents:
Item 3 Report 06132023.pdf
4. Resolution declaring a continued emergency and authorizing repair, replacement or maintenance activities of public facilities
related to the Urban Orchard, City
Project No. 539-PRK without public bidding, pursuant to the Emergency Contracting
Procedures of the SG Municipal Code and the California Public Contract Code
The City Council will consider making a finding and adopting a Resolution
declaring an
emergency still exists and authorizing repair, replacement or maintenance activities of public facilities related to the Urban Orchard, City Project No. 539-PRK, without public bidding, pursuant to the emergency contracting procedures of the South Gate Municipal Code and the California Public Contract Code. (PW)
Documents:
Item 4 Report 06132023.pdf
5. Resolution adopting the Local Streets and Roads Funding Program Project List for Fiscal Year 2023/24 to comply with Senate Bill 1
Requirements
The City Council will consider adopting a
Resolution
adopting the Local Streets and
Roads Funding Program Project List for Fiscal Year 2023/24 to program $650,000 in Senate Bill 1 funds for the Tweedy Mile Complete Streets, City Project No. 614-ST, $850,000 for the Citywide Residential Resurfacing Phase I, City Project No. 637-ST, $480,385 for the Citywide Residential Resurfacing Phase IV, City Project No. 699-ST, $225,000 for the Tweedy Mile Complete Streets Phase II, City Project No. 717-ST, and $100,000 for the Tweedy Mile Uncontrolled Crosswalks, Project No. 650-ST, in compliance with Senate Bill 1 requirements. (PW)
4 Documents:
Item 5 Report 06132023.pdf
Attachment D Senate Bill No. 1.pdf
6. Amendment No. 2 to Contract No. 3500 for Additional Services with Iteris, Inc. for the Tweedy Blvd Signal Synchronization Project
The City Council will consider: (PW)
a. Approving
Amendment No. 2 to Contract No. 3500
with Iteris, Inc., for additional
design services for the Tweedy Boulevard Signal Synchronization Project, LAMTA ID F7309, City Project No. 514-TRF, in an amount not-to-exceed $40,500; and
b. Authorizing the Mayor to execute Amendment No. 2 in a form acceptable to the City Attorney.
Documents:
Item 6 Report 06132023.pdf
7. Agreement with John L. Hunter & Associates for the Management Services of the Used Oil Recycling and Beverage Container Recycling Programs
The City Council will consider: (PW)
a. Approving an
Agreement
with John L. Hunter and Associates, Inc., for management services for the Used Oil Recycling ("UOR") and Beverage Container Recycling ("BCR")Programs, for a three year term, in the amount not-to-exceed $114,600; and
b. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney.
Documents:
Item 7 Report 06132023.pdf
8. Purchase Order Agreement with Dave Bang & Associates for replacement of rubberized surfacing at north playground
of South Gate Park
The City Council will consider: (PARKS)
a. Approving the appropriation $120,000 from the Park Enhancement Fund to be added to
the existing budget for the repair of the rubberized surfacing at the North Playground of South Gate Park;
b. Approving a purchase order agreement with Dave Bang & Associates for $307,641.57 to
remove the old, rubberized surfacing and replace it with new materials utilizing their California Multiple Award Schedule CMAS #4-22-12-1015 contract; and
c. Authorizing the Director of Parks & Recreation to approve any contingency's or change 5 orders up to $12,358.43.
Documents:
Item 8 Report 06132023.pdf
9. Modification of authorization procedure for temporary staff retention
The City Council will consider authorizing the City Manager or his/she designee to sign and execute any "job arrangement letter" up to the maximum cap as authorized in the approved fiscal year budget under the Master Agreement with any of the temporary staffing agencies previously approved by City Council per fiscal year effective July 1, 2023. (HR)
Documents:
Item 9 Report 06132023.pdf
10. Updates to Administrative Regulation 302 - Travel Policy
The City Council will consider adopting the proposed updates to the City's Administrative Regulation 302 - Travel Policy. (ADMIN SVCS)
Documents:
Item 10 Report 06132023.pdf
11. Investment Report quarter ending March 31, 2023
The City Council will consider receiving and filing the Quarterly Investment Report for the quarter ended March 31, 2023. (ADMIN SVCS)
Documents:
Item 11 Report 06132023.pdf
12. Approve Annual Adoption of the City's Investment Policy
The City Council will consider adopting the City's Annual Statement of Investment Policy. (ADMIN SVCS)
Documents:
Item 12 Report 06132023.pdf
13. Minutes
The City Council will consider approving: (CLERK)
a. The Special Meeting minutes of January 10, 2023
b. The Special Meeting minutes of February 28, 2023
6 c. The Special Meeting minutes of March 14, 2023
d. The Regular Meeting minutes of March 14, 2023
e. The Special Meeting minutes of March 28, 2023
f. The Special Meeting minutes of April 11, 2023
Documents:
Item 13 Report 06132023.pdf
Reports, Recommendations And Requests
14. Update regarding River Ranger Program
The City Council will consider receiving and filing a report by the Nature for All and the Conservation Corp of Long Beach on the River Ranger Program and other activities on the LA River. (PARKS)
Documents:
Item 14 Report 06132023.pdf
15. Video Streaming options for City Council Meetings
The City Council will consider options presented by staff that would permit video streaming of City Council meetings and provide further direction on next steps. (ADMIN SVCS)
Documents:
Item 15 Report 06132023.pdf
16. Warrant register for June 13, 2023
The City Council will consider approving the Warrant Register for June 13, 2023. (ADMIN SVCS)
Total of Checks: $3,219,907.88 Less: Voids $ (3,694.90) Less: Employee Payroll Deductions
$ (375,642.81)
Grand Total: $2,840,570.17
Cancellations: 94721, 95055, 95470, 95548, 96740, 96877, 96971, 97275, 97303, 97551, 97952, 98312, 98313, 98314, 98975, 99057, 100251, 101298, 101344 Documents:
Item 16 Report 06132023.pdf
7 Adjournment
I, Yodit Glaze, City Clerk, certify that a true and correct copy of the foregoing Meeting Agenda was posted on June 7, 2023, at 12:20 p.m., as required by law.
Yodit Glaze
City Clerk
GENERAL NOTICE TO THE PUBLIC
The City Council adopted new rules relating to the conduct of the public meetings, proceedings, and business in the City of South Gate on July 12, 2022, (Resolution 2022-38-CC) and go into effect on August 1, 2022. Resolution #2022-38-CC is available at the City Clerk’s Office.
MEETING SCHEDULE
Regular meetings of the City Council are held on the second and fourth Tuesday of each month, closed session meetings will commence at 5:30 p.m. unless posted otherwise on its agenda. The regular City Council meetings will commence at 6:30 p.m. Agendas are available at the following locations:
City Clerk
Office,
Public Notice Boards at City Hall, and on the
City’s web page at https://www.cityofsouthgate.org
The Public can sign up to receive automatic notices of postings of agendas for the City Council or any other Commission or Board of the City of South Gate. Visit the City webpage and click on the Agenda & Minutes icon. That will take you the page where an individual can enter their email in the “Email Updates” box to register.
PUBLIC COMMENT/PARTICIPATION
Any person may request to address a legislative body during a public meeting. The Presiding Officer will call upon those present in the Council Chambers first. After all speakers in the Chambers have spoken, the Presiding Officer will call upon those participating via zoom or teleconference.
Speakers are limited to three (3) minutes on any item listed on the agenda, including public hearings.
Under Comments from the Audience portion, speakers are also limited to a single three (3) minutes time limit. Comments from the Audience is initially limited to 45 minutes at each meeting. Any speaker still wishing to speak, that did not speak, will have an addition Comments from the Audience opportunity after the last business item is finished. The Presiding Officer may extend the time limit as long as there is no objection from the City Council as a body.
To ensure that the public is able to participate, the City provides the opportunity to submit their comments in person, virtually, email, phone call, mail and any other method which may become available. Methods of participation may be subject to change during other such times when a State of Emergency, Health Order or State Executive Order limits in-person participation.
CURFEW
In absence of a motion duly adopted by majority vote of the City Council, the Presiding Officer may adjourn the City Council meetings at 10:30 p.m. The Presiding Officer may ask the City Council if any agenda items listed should be continued or dealt with during the meeting. For those items to be continued, the City Council can direct the item be placed on the next City Council agenda or the current meeting may be adjourned to a time certain at which time the meeting shall be reconvened as an 8 Adjourned Regular Meeting of the City Council and action upon the published agenda continued.
STAFF REPORTS
As a general rule, staff reports. or other written documentation are prepared/organized with respect to each item of business listed on the agenda. Meeting agendas and staff reports are available at least 72- hours prior to the scheduled regular City Council meeting and a minimum of 24-hours prior to a Special City Council meeting. There are times when the City Council receives written material. revised material after the posting of agendas, these materials are become a public record and will be available for public view within 72-hours after the meeting in which they were received. Those materials and any other public document can be inspected in the City Clerk's Office located at 8650 California Avenue, South Gate.
SERVICES TO FACILITATE ACCESS TO PUBLIC MEETINGS
In compliance with the American with Disabilities Act, if you need special assistance to participate in the City Council Meetings, please contact the Office of the City Clerk. Notification 48 hours prior to the City Council Meeting will enable the City to make reasonable arrangements to assure accessibility. For further information, please contact the Office of the City Clerk at (323) 563-9510 or via email at [email protected]
.
9 DffYMANMllR'SfiPPlfi! Item No. l
JUN U 6 2023 City of South Gate
CITY COUNCIL
AGENDA BNLL
For the Regular Meeting of June 13, 2023
Originating Department: City Managels Office
ActingMarxagemeidAnalystbGlselle!!HerPnanez
Ciffl Manager:
'1
Chris J ers
SUBJECT: APUBLICHEARINGTOCONSIDERAPROPOSALTOLEVYANDCOLLECT ASSESSMENTS FOR FISCAL YEAR 2023/24 FOR THE PARKING AND BUSINESS
IMPROVEMENT AREA (KNOWN AS THE TWEEDY MILE BUSINESS DISTRICT)
BUSINESS LICENSE
PURPOSE: Annually, the City is required by the Parking and Business Improvement Area Law of 1989 (California Streets And Highways Code Section 36500 et seq.) to undertake certain proceedings to levy and collect assessments within the Parking and Business Improvement Area. On May 9, 2023, the City Council initiated the proceedings and adopted a resolution to declare the City's intention to levy and collect said assessments. The last step in the proceedings is to conduct the Public Hearing and adopt a Resolution to levy and collect assessments for Fiscal Year 2023/24 for the Parking and Business Improvement Area Business License.
RECOMMENDED ACTION: Following the conclusion of the Public Hearing, the City Council will consider adopting a Resolution ordering the levy and collection of assessments for Fiscal Year 2023/24 for the Parking and Business Improvement Area (known as the Tweedy Mile Business District) Business License, as permitted by the Parking and Business Improvement Area Law of 1989 (California Streets And Highways Code Section 36500 et seq.).
NOTICING PROCEDURE: A Public Hearing Notice was duly published in the Los Angeles Wave, a local newspaper of general circulation, on May 18, 2023.
FISCAL IMPACT: The assessment for a single business can range from $14 to $400 annually, an amount which has not changed since January 1971. The Parking and Business Improvement Area Business License funding available for Fiscal Year 2023/24 is estimated to be $15,824.
ANALYSIS: On November 2, 1970, the City Council adopted Ordinance No. 1129 adding Chapter 2.64 (Parking and Business Improvement Area Business License), to Title 2 (Licenses - Business Regulations), of the South Gate Municipal Code establishing a Parking and Business Improvei'nent Area (Area), pursuantto the Parking and Business Improvement Act Law of 1965, Part 5 of Division 18 of the California Streets and Highway Code Section 36000 through 36081. The way the Area works is that the City levies an additional business license tax on businesses located within the designated Area. Section
2.64.040 (Uses and Purpose), states that the funds collected by the City can only be used for the following purposes:
1 10
C.
for decoration of any public place in the area;
for promotion of public events which are to take place on or in public places in the area; and for the general promotion of retail trade activities in the area.
The City's Municipal Code also requires that the Tweedy Mile Advisory Board (Board) submit an Annual Report to the City Council no later than June IS' of each year. The Annual Report shall specify the expenses, services, activities, and programs to be funded by the assessment for the upcoming fiscal year, in accordance with the requirements of Sections 36530 and 36533 of the California Streets and Highways Code. Said Code also requires the City Council to approve the Aru'iual Report, and after, it shall adopt a Resolution declaring the City's intention to levy an annual assessment for the fiscal year and schedule a Public Hearing to allow public testimony regarding the proposed assessment.
The Tweedy Mile Advisory Board approved the attached Annual Report (Attachment B). In addition to the Annual Report, the City Council adopted a Resolution declaring the City's intention to levy and collect assessments for Fiscal Year 2023/24, and scheduled a Public Hearing for June 13, 2023. All affected businesses were notified by mail of the Public Hearing (Attachment D). A FAQ (Frequently Asked Questions) document in English and Spanish was also mailed out.
No tax increase or changes to the assessment methodology are proposed for assessments to be collected in Fiscal Year 2023/24. The assessment amount has not changed since the Parking and Business Improvement Area was created. The proposed budget for Fiscal Year 2023/24, is included in the Annual Report (Attachi'nent B).
BACKGROUND: On May 9, 2023, the City Council initiated the proceedings and adopted a Resolution to declare the City's intention to levy and collect said assessments. The last step in the proceedings is to conduct the Public Hearing and adopt a Resolution to levy and collect assessments for Fiscal Year 202323 for the Parking and Business Improvement Area Business License.
Tonight's Public Hearing is the last step, providing a final opportunity to receive public testimony regarding the proposed assessments. At the conclusion of the Public Hearing, the City Council shall tabulate any written or verbal protests on the proposed assessments.
If the assessments of businesses submitting a protest to the proposed Fiscal Year 2023/24 assessments are 50% or greater of the total proposed assessments, assessments shall not be collected in the upcoming year. In absence of a majority receipt of protests, Council may adopt a Resolution approving the levy and collection of assessments in Fiscal Year 2023/24.
The schedule for the assessment proceedings has been/is as follows:
Dates Action
Mayl,2023 I Board reviews and approves the Annual Report.
May 9, 2023 City Council adopts Resolution of Intent to Levy Assessments for Fiscal Year 2023/24.
May 18, 2023 Letter and Resolution of Intent (indicating Public Hearing information and how to submit protests
verbally or in writing) will be mailed to all affected businesses.
11 June 13, 2023 City Council conducts Public Hearing to receive public testimony on the proposed assessment levy.
ATTACHMENTS: A. Proposed Resolution
B. Tweedy Mile Advisory Board's Annual Report
C. Notice of Public Hearing
D. Copy of Letter Mailed to all Affected Businesses 12 ATT ACHMENT A
RESOLUTION NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE,
CALIFORNIA, ORDERING THE LEVY AND COLLECTION OF
ASSESSMENTS FOR FISCAL YEAR 2023-2024 FOR THE PARKING AND
BUSINESS IMPROVEMENT AREA (KNOWN AS THE TWEE,DY 'MILE
BUSINESS DISTRICT) BUSINESS LICENSE, AS PERMITTED BY THE PARKING AND BUSINESS IMPROVEMENT AREA LAW OF 1989 (CALIFORNIA STREETS AND HIGHWAY CODE SECTION 36500 ET SEQ.) WHEREAS, pursuant to the Parking and Business Improvement Act Law of 1965, Part 5 of Division 18 of the California Streets and Highway Code Section 36000 through 36081, on November 2, 1970, the City Council ("City Council") of the City of South Gate ("City") adopted Ordinance No. 1129 adding Chapter 2.64 (Parking and Business Improvement Area Business License), to Title 2 (Licenses - Business Regulations), of the South Gate Municipal Code establishing a Parking and Business Improvement Area ("Area"), specifying the initial or additional rate or levy of the license tax to be imposed on businesses, and specifying the uses to which the revenue shall be expended;
WHEREAS, the Parking and Business Improvement Area Business License levies an additional business license tax on businesses located within the designated Area; WHEREAS, pursuant to Section 36530 of the California Streets and Highways Code, on September 27, 2011, the City Council adopted Ordinance No. 2286 adding Sections 2.64.100 through 2.64.140 establishing the Tweedy Mile Advisory Board ("TMAB") to make recommendations to the City Council on the expenditure of revenues derived from the levy assessments on proposed improvements and activities and on the method and basis of levying assessments;
WHEREAS, on September 11, 2018 and September 25, 2018, the City Council made appointments to the TMAB, which held its first meeting on February 4, 2019, and have met from time to time since;
WHEREAS, the TMAB prepares an annual report specifying the expenses, services, activities, and programs to be funded by the assessment, in accordance with the requirements of Sections 36530 and 36533 of the California Streets and Highways Code, and upon TMAB's approval of the annual report, presents it to the City Council for the conduct of a public hearing on the assessments for the fiscal year referred to in the annual report; WHEREAS, the Area is known as the Tweedy Mile Business District which boundaries include Tweedy Boulevard betweenthe beginning ofthe northeasterly line of Long Beach Boulevard and easterly along said prolongation and southerly line to the intersection with the westerly line of 13 Hunt Avenue;
WHEREAS, the City Council and the TMAB have determined that the Area benefits the businesses located and operating within the Area by generating revenue for businesses to improve the physical and financial health, social and cultural center of the City, and thereby enhances the City's community at large;
WHEREAS, the TMAB has conducted outreach to member businesses to formulate the Annual Report for Fiscal Year 2023/24, including the work plan, budget and fee assessment schedule that would be fair, reasonable and in compliance with the California Streets and Highway Code Section 36500 et. seq.;
WHEREAS, at its Regular Meeting ofMay 1, 2023, theTMAB approvedthe Annual Report for Fiscal Year 2023/24, specifying the expenses, services, activities, and programs to be funded by the assessments for Fiscal Year 2023/24;
WHEREAS, the continuation of the Area and the related levy of assessments will promote the economicrevitalization of the downtown area ofthe City, createjobs, and attractnewbusinesses; in addition, the Area enhances and promotes the City, culturally and comi'nercially; and WHEREAS, following adoption, mailing, and publication of a Resolution of Intentto Levy and Collect the Assessments, the City Council held a public meeting on May 9, 2023 to allowpublic testimony regarding the Fiscal Year 2023/24 assessments of businesses within the Area; WHEREAS, the City Council held a public hearing on June 13, 2023, and heard and considered all protests against the establishment of the assessment; and WHEREAS, the writtenprotests received from the owners of businesses in the Areatotaled less than 50 percent of the assessments
NOW, THEREFOR, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council does hereby declare that the above recitals are true and correct and are incorporated herein by reference.
SECTION 2. The City Council does hereby declare that the Area has not changed. The territorial boundaries in the Area are identified in the Area Map attached hereto as Exhibit"A" andmade apart hereof,
SECTION 3. Pursuant to the Parking and Business Improvement Area Law of 1989 (California Streets and Highway Code Section 36500 et seq.), the City Council does hereby declareits intention to continue the levy and collect assessments within the Area for the purpose of marketing and promoting activities which will benefit the businesses located and operating within the Area for Fiscal Year 2023/24.
Page2of4
14 SECTION 4. The City Council does hereby declare that the type or types of improvements and activities proposed to be funded by the levy of assessments on businesses in the Area areinline with the "Improvements" and "Activities" permitted under Sections 36510 & 36513 of Streets and Highway Code, specifically: (a) "Improvement" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to parking facilities, benches, trashreceptacles, street lighting, decorations, parks, and fountains; and (b) "Activities" means, but is not limited to, promotion ofpublic events which benefit businesses in the area and which take place on or in public places within the area, furnishing of music in any public place in the area, promotion of tourism within the area and activities which benefit businesses located and operating in the area. Except where funds are othei'wise available, an assessment will be levied annually to pay for all improvements and activities within the Area.
SECTION 5. The TMAB's Annual Report for Fiscal Year 2023/24 is on file in the City Clerk's Office and contains a description of the improvements and activities to be provided, the boundaries of the Area, and the proposed assessments to be levied upon the businesses within the Area for the Fiscal Year 2023/24.
SECTION 6. The City Council conducted a public hearing on June 13, 2023, at 6:30 p.m., at tlie City Hall Council Chambers and via Call-in Conference, to consider said assessments to be levied.
At least 72 hours beforehand, the Dial-InNumber and Conference Code will be posted onthe City's website at www.cityofsouthgate.org. During the public hearing, the City Council allowed public testimony regarding the proposed assessments of businesses within the Area for the proposed work plan for Fiscal Year 2023/24.
SECTION 7. At this public hearing, the City Council heard and considered all protests against the establishment of the assessment or the furnishing of specified types of improvements or activities within the Area. The protests against the assessments were made orally or in writing by any interested person. All written protests were filed with the City Clerk.
A written protest may be withdrawn from the record at any time before the conclusion of the public hearing. Each written protest shall contain a written description of the business in which the person signing the protest is interested, sufficient to identify the business, and its address. If the person signing the protest is not shown on the official records of the City as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the business. Any written protest as to the regularity or sufficiency ofthe proceeding shall be in writing and clearly state the irregularity or defect to which objection is made. [Remainder of page left blank intentionally.]
15 SECTION 8. The City Council does hereby order the levy and collection of the assessment for Fiscal Year 2023/24/ The method and basis of levying the annual assessment for each business in the Area for the Fiscal Year 2023/24 is set forth in Exhibit B attached hereto and made a part hereof.
SECTION 9. The City Clerk shall certify the adoption of this Resolution which shall be effective upon its adoption.
PASSED, APPROVED and ADOPTED this 13"1 day of June 2023.
CITY OF SOUTH GATE:
By:
Maria del Pilar Avalos, Mayor
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
By:
3'a2s,cEo"'rne7
Page4of4
716
ATT ACHMENT B
PARKING AND BUSINESS IMPROVEMENT AREA
ANNUAI, REPORT FOR FISCAL YEAR 2023/24
This annual report includes the proposed assessment levy and program budget for the fiscal year 2023/24.
Tweedy Mile Advisory Board
Per the Parking and Business Improvement Area Law of 1989 and the South Gate Municipal Code, Chapter 2.64, the City Council shall appoint a Tweedy Mile Advisory Board in order to make recommendations to the City Council on the expenditure of revenues derived from the levy assessments on proposed improvements and activities and on the method and basis of levying assessments.
Purpose of Annual Report
The Tweedy Mile Advisory Board shall prepare an annual report for each fiscal year for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report. The repott may propose changes, including but not limited to, the boundaries of the parking and business improvement area and the basis and method of levying the assessments.
Boundaries and Assessments
There are no proposed changes to the Parking and Business Improvement Area ("Area") boundaries or the assessment methodology. The Area boundary map and assessment methodology are included as Exhibits A and B.
Method and Basis of Levying the Assessment
All businesses within the Area are subject to the assessment. The levy of the business license tax imposed upon the businesses within said Area, is hereby fixed, levied, determined, and established per the City's assessment methodology included with this report as Exhibit B.
Payment of Tax
The additional rate or levy of the license tax levied is due and payable at the same time and in the same manner that the business license tax is imposed by the South Gate Municipal Code Chapter 2.08 (Business License Tax).
Budget
A line-item budget for FY 2023/24 is included with this report as Exhibit C. The Board has allocated $10,000 for the annual installation, removal, and storage of the Christmas decorations on Tweedy Blvd. The remaining $5,824 will likely be used to maintain the Tweedy Mile Business Improvement District website currently being developed as well as additional marketing services for the district. The Board will approve specific funding requests next fiscal year during their monthly scheduled meetings.
Last year, the Board approved $20,000 to contribute towards the purchase of new Christmas 1 17
ATT ACHMENT B
decorations and $40,000 for marketing services for the Tweedy Mile Business Improvement District including a website, videos, photos, and printed material. The marketing services project kicked off in April 2023 and will continue into next fiscal year.
Exhibit A- Parking and Business Improvement Area Map Exhibit B - Parking and Business Improvement Area Business License Fees Exhibit C - Parking and Business Improvement Area Budget for FY 2023/24 2 g18
Exhibit A
City (If
South
(,ate
ass AaA 40
Below is a map delinea+ing the boundaries of the Parking and Business Improvement Area and the list of addresses locoted within the Area.
ff AVE.
7 '9600
AVE.
TAEE@'
SCHOOL WiSCOt
0400
AltE.
[!RIVE
At/E.
AIIE.
TENA'
MAR LurHER KINC,
Addresses located in the Business Improvement Area:
California Ave. 9700 - 10100
Long Beach Blvd.
Otis St.
Son Gabriel Ave.
Son Juan Ave.
9700 - 9900
9700 - 10100
9900 -10100
9900 - 10100
State St. 9700 - 9900
Tweedy Blvd. 3150 - 4499
1019
Exhibit B
CITY OF SOUTH GATE
PARKING AND BUSINESS IMPROVEMENT AREA BUSINESS LICENSE FEES FISCAL YEAR 2023/24
Street Name Address Range
Tweedy Blvd. 3150 - 4499
California Ave. 9700 - 10100
Long Beach Blvd. 9700 - 9900
Otis St. 9700 - 10100
San Gabriel Ave. 9900 - 10100
San Juan Ave. 9900 - 10100
State St. 9700 - 9900
Businesses located in the Parking and Business Improvement Area are subject to the provisions of Chapter 2.64 of the South Gate Municipal Code, "Parking and Business Improvement Area" which established a Business Improvement Area Fee based on the businesses" annual gross receipts.
The Business Improvement Area Fees are collected by the City and are deposited into the "Parking and Business Improvement Account" and can be used for the following purposes only:
1. Decoration of any public place in the area.
2. Promotion of public events which are to take place on or in public places in the area.
3. The general promotion of retail trade activities in the area.
The Business Improvement Area Fee is an additional fee to the regular City license tax shown on the enclosed renewal. The business owner shall calculate the Business Improvement Area Fee according to the schedule below and add it to total tax calculated on the Business License Renewal Form.
Schedule of Business Improvement Area Fees
Annual Gross Receipts Total:
If less than SI0,000
If SI0,000 or more, but less than 525,000
If 925,000 or more, but less than 550,000
If S50,000 or more, but less than S75,000
If S75,000 or more, but less than SIO0,000
If SIO0,000 or more, but less than S200,000
If S200,000 or more, but less than 9300,000
If S300,000 or more, but less than S400,000
If 5400,000 or more, but less than S500,000
If S500,000 or more, but less than S600,000
If %00,000 or more, but less than 9700,000
If S700,000 or more, but less than S800,000
If S800,000 or more, but less than S900,000
If S900,000 or more, but less than 91,000,000
If 51,000,000 or more, but less than Sl,100,000
If 91,100,000 or more, but less than 51,200,000
If Sl,200,000 or more, but less than Sl,300,000
If 91,300,000 or more, but less than 51,400,000
If Sl,400,000 or more, but less than Sl,500,000
If such gross receipts exceed the sum of Sl,500,000, the Fee shall be the sum of 5236.00 as specified above, plus the sum of 25 cents for each 91,000 or major fraction thereof in excess of said Sl,500,000.
The Fee Shall Be:
915
920
S25
936
S48
560
S72
S84
S96
9110
9124
9138
5152
9166
9180
S194
!5208
S222
S236
Total Not to Exceed S400
20 Parking and Business Improvement Area Budget
FY 2023/24
Exhibit C
Estimated Beginning BID Fund Balance - July 1, 2023 (S4,276.00) FY 2022/23 Estimated Assessment Revenue 920,100,00
Total Estimated BID Funds Available for Use in FY 2023/24 615,824.00 Proposed Budget Items Amounts
Decoration of Any Public Place in the Area 510,000.00 Promotion of Public Events which are to take place in the Area 90.00 General Promotion of Retail Trade Activities in the Area 55,824.00 Estimated Ending BID Fund Balance - June 30, 2024 60.00 1 1221
Attachment C
SOUTH GATE PRESS
Thls space TOT nllng stamp only
3731 WILSHIRE BLV[) STE 840, LOS ANGELES, CA 90015
Telephone (323) 556-5720 / Fax (213) 834-0584
Yodit Glaze
CITY OF SOUTH GATE /CITY CLERK
8650 CALIFORNIA AVE
SOUTH GATE, CA - 90280
PROOF OF PUBLICATION
(2015.5 C.C.P.)
State or California
County of LOS ANGELES
NOtiCt-'5'Pe: GPN-GOVTPUBLICNOTICE
Ad Description:
Tweedy Mile Business District Levy and Assessment I am a citizen of the 11nited States and a resident of the State of Califomia; I am over the age of eighteen years. and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the SOUTH GATE PRESS, a newspaper published in the English language in the city of SOUTH GATE, county of LOS ANGELES, and adjudged a newspaper of general circulation as defined by the laws of the State of Califomia by the Superior Court of the County of LOS ANGELES, Sfate of California, under date 04/1 9/1929, Case No. 273415. That the notice, of which the annexed Is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:
05/1 8/2023
Office of the
South Gate City Clerk
MAY 2 2 2023
PILED
PRE#: 3701012
CffY OF SOUTH GATE
NOTICE OF PIIBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Councll
oL South Gale, CaliTomla V/111 canduci a publlc
hearing lot the putptise oT canlinulng the levy and assessment ol buslness owners wllhln the
Parklng and Buslness Improvement Area. also
known as ihe Tweedy Mile Buslness € lslrld. TOT
the Flsml Year 2023{24. In response io this
report and recommendallon, as petmllled under
the CallTomla Streets and Highways Code, Ihe
City Councll adopled a ResoluUon an May 9,
2023, declarlng Ihe Clty's Intentions to levy and
collecl the assessments, known as a huslness
license fee. for the Flscal Yeat 2023/24. as
recommended by the Tweedy Mile Advlsory
Board.
NOTICE IS HEREBY GIVEN that the CRy Council
shall conduct a publlc heanng In connecllon with
the proposed assessment:
DATE: TuESDAY JuNE 13. 2023
TIME: 6:30 P.M.
LOCATION: In-Person at Clly Hall8650
CaliTonila Aye.
Members oT Ihe publlc may also loin vla
ieleconTepnce. For the updaled Dlal-In Number
Jlosilllhe Juniheel31h CgiyC:soundl mmebestllnleg, pleasaei ""The Pau'Kolic'oH'elhaflnag'ahoa'!' been scheduled Tor the Clty Coundl to hear oral and written tesllmtiny
Trom Inteiesled pgrlles. At the end oT the Public
Headng. the ally Coundl shall deiennine whether
sufficient protests equallng 50 percent or mov oT
the assessmenls pnoposed have been received. If
sufficient protests are received, Ihe assessments
shall not be approved.
Each wtlllen protest shall conleln the buslness
address and name of person. Written protests
agalnsl the proposed assessment shall be malled
or dellvered 10 the Clly Clerk's Office, 8650
Calffornla Avenue. 8oulh Gale. Callfomla. 9t)280
or at [email protected]. no later than 5:00
p.m., on June 13, 2023.
SGhlsoe'll'ed )-Ioe'mhaan'daez,a'Xcffn'ga"j'loa"n:g'emaaeanal A"on'a'lay"s'l by phone at (323) 583-9502 or by emall at
[email protected].
ESPANOL
Pata lnTormacl6n en Espanal aceica de esla
luma. por lavor de comunlcarse al (323) 563-
gso:i.
THIS NOTICE IS GIVEN by Ihe order of the Clly
Clerk oT sald City and Is dated Ihls May j8, 2023.
Yodll Glaze. Clly Clerk
!!!8723
PRE-370lOi2#
SOLITH GATE PRESS
Executeo on: 05/18/2023
At Los Angeles, California
I certify (or declare) under penaRy of perjury that (he foregolng Is true and correct.
Signature
Illllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllll 13 Email
22 Offkeofthe
Soiith @ateCityClerk
CITY OF SOUTH GATE
NOTICE OF PUBLIC HEARING
MAY 1 i 2023
FILED
NOTICE IS HEREBY GIVEN tliat the City Council of Sorith Gate, California will conduct a public heat-ing for the purpose of continuing the levy and assessment of busiixess owners within the Parking and Business Improvement Area, also known as tlieTweedy Mile Business Distiict, forthe Fiscal Year 2023/24. hi response to this report and recoinmendation, as permitted under the California Streets and Higliways Code, the City Council adopted a Resolution on May 9, 2023, declaring the City's intentions to levy and collect tlie assessments, known as a business license fee, for the Fiscal Year 2023/24, as recoinmended by the Tweedy Mile Advisory Board.
NOTICE IS HEREBY GIVEN that the City Council shall conduct apublic hearing in coruiection with tlie proposed assessment:
DATE:
TIME:
LOCATION:
TUESDAY, JUNE 13, 2023
6:30 P.M.
In-Person at City Hall-8650 California Ave.
Members of the public may also join via teleconference. For the updated Dial-In Number for tlie June 13" City Corincil meeting, please visit the City's website at wwvv.cityofsoutligate.org.
The Public Hearinghas been scheduled for tl'ie City Council to hear oral and wiitten testii'nony from interested parties. At the end of the Public Hearing, tlie City Council shall deteimine whether sufficient protests equaling 50 percent or more of the assessments proposed have been received. If sufficient protests are received, the assessments shall not be approved.
Each written protest sliall contain the business address and name of person. Writtenprotests against the proposed assessment shall be mailed or delivered to the City Clerk's Office, 8650 California Avenue, South Gate, California, 90280 or at [email protected], no later than 5:00 p.m., on June 13, 2023.
Should youhave any questions, please contact Giselle Hernandez, Acting Manageinent Analyst by phone at (323) 563-9502 or by email at ginhernandeJ4sogate.org.
ESPANOL
Para informaci6n en Espariol acerca de esta junta, por favor de comunicarse al (323) 563-9502.
THIS NOTICE IS GIVEN by the order of the City Clerk of said City and is dated this May 18, 2023.
Publication date: May 11, 2023
1423
Attachment D
Cityof
South
(,ate
May 15, 2023
Office of the City Manager
8650 California Avenue, South Gate, CA 90280
P: (323) 563-9501 F: (323) 569-2678
www.cityofsouthgate.org
RE: City's Intention to Levy and Collect Assessments for Fiscal Year 2023-2024 for the Tweedy Business Improvement Area, also known as the Tweedy Mile
Dear Business Owner:
Notice is liereby given tliat tlie City of Soutli Gate will conduct a public liearing for tlie purpose of continuing tlie levy of business owners, known as a business license fee, witliin tlie Parking and Business Improvement Area, also known as tlie Tweedy Mile, for the Fiscal Year 2023/24. In response to tliis recominendation, as pern'iitted under tlie California Streets and Higliways Code Section 36500, tlie City Council adopted a Resolution on May 9, 2023, declaring tlie City's intentions to levy and collect tlie assessments/business license fee.
Enclosed witli tliis letter is a copy of tlie proposed Annual Report.
NOTICE IS HEREBY GIVEN tliat tlie City Council sliall conduct a public liearing in connection witl'i the proposed Annual Report:
DATE:
TIME:
Tuesday, June l3, 2023
6:30 P.M.
LOCAT ION: City Hall Council Chambers
8650 California Ave, Soutli Gate, CA 90280
OR via Teleconference, please visit tlie City's website at www.citvofsoutl'igate.org for tlie updated Dial-In Number and Meeting [D for tlie June 13"' City Council meeting.
Tlie Public Hearing lias been sclieduled for tlie City Council to liear oral and written testimony from tlie business owners on Tweedy Mile. Eacl'i written protest sl'iall contain tlie business address and name of business owner. Written protests against tl'ie proposed assessment sliall be mailed or delivered to tlie City Clerk's Office, 8650 California Avenue, Soutli Gate, California, 90280 or emailed to sgueirero(2iIisogate.org, no later than 5:00 p.m., on June 13, 2023.
Sliould you liave any questions, please contact Giselle Hernandez, Acting Management Analyst by pl'ione at (323) 563-9502 or by email at gmliernandez(24sogate.org.
Sincerely,
Giselle M. Hemandez,
Acting Management Analyst
Enclosure: Proposed Annual Report
"li'lio
24 (ltya!
South
(,ate
15 de mayo de 2022
Office of the City Manager
8650 California Avenue, South Gate, CA 90280
P: (323) 563-9501 F: (323) 569-2678
www.cityofsouthgate.org
RE: Intenci6n de la Ciudad de continuar evaluaciones para el afio fiscal 2023-2024 para el Area de mejora comercial Tweedy, tambi6n conocida como Tweedy Mile Estiii'iado/a duerio/a de Negocio:
Por la presente se notifica que la Ciudad de Soutli Gate IlevarA a cabo una audiencia publica con el prop6sito de continuar la tarifa de licencia comercial a los duefios de negocios dentro del Area de Mejoran'iiento Comercial, tambi6n conocida como Tweedy Mile, para el Afio fiscal 2023/24. En respuesta a esta recomendaci6n, segm lo petido por la Secci6n 36500 del C6digo de Calles y Carreteras de California, el Concejo Municipal adopt6 una Resoluci6n el 9 de mayo de 2023, declarando las intenciones de la Ciudad de continuar las tarifas de licencia comercial, para el Afio fiscal 2023/24, seg €in lo recomendado por la Junta Asesora de Tweedy Mile.
Adjunto a esta carta se encuentra una copia del Infom'ie Anual propuesto.
POR L A PRESENTE SE DA AVISO de que el Concejo Municipal llevarA a cabo una audiencia p{iblica en relaci6n con el informe anual propuesto:
FECHA:
HORA:
Martes 13 de junio de 2023
6:30 P.M.
UBICACI('N: CAmaras del Concejo Municipal
8650 California Ave, South Gate, CA 90280
o a trav6s de Teleconferencia, visite el sitio web de la Ciudad en ivvv.cityofsoutligate.org para obtener el taui'iero de marcaci6n para la reini6n del Concejo Municipal del 13 de junio.
La A,udiencia Publica ha sido programada para que el Concejo Municipal escuche el testiinonio oral y escrito de los duefios de negocio. Cada protesta escrita deberA contener la direcci6n comercial y el nombre del duefio de negocio. Las protestas por escrito contra la evaluaci6n propuesta se enviaran por coi'reo o se entregaran a la oficina de la secretaria n'iunicipal, 8650 Califoxuia Avenue, South Gate, California, 90280 o sguerrero@,so=ate.org, a mis tardar a las 5:00 p.m., el 13 de junio de 2023.
Si tiene alguna pregutta, contunfquese con Giselle Hemandez, Analista por tel6fono al (323) 563-9502 o por correo electr6nico a ginhetnandez@,sogate.org
Atent nte,
Giselle Mares, Analista
Adjunto: Infonne anual propuesto Iliil'
illl1,
25 FREQUENTLY ASKED QUESTIONS
W HAT I S A B ID ?
BID is an acronym for "Business Improvement District" and it is an additional tax fee on property within a defined geographic boundaryin which the revenues raised from this additional tax fee are spent only within the same area.
WHEN IS THE ADDITIONAL TAX FEE DUE?
The additional tax fee is due and payable at the same time as the business license renewal.
IS THI S A NEW TAX?
No, the City Council adopted the BID on November 2, 1970. This additional tax fee has been renewed every year since and the fee amounts have remained the same.
W H 0 M AN AG ES THE Bl D?
The BID is managed by the Tweedy Mile Advisory Board. The Board is appointed by the City Council and serves in an advisory capacity by submitting request for their approval on expenditures of revenues collected from the levy of the additional tax fees.
H O W A RE T H E A D DITIO N A L T A X FEES C A LC U LATE D ? The additional tax fees are determined by the annual gross receipts and range between 915-9400. See enclosed fee schedule.
HOW ARE THE ADDITIONAL TAX FEES COLLECTED USED?
The additional tax fees collected can be used for the following purposes only:
1. ) Decoration of any public place in the area.
2. ) Promotion of public events which are to take place in public places in the area.
3. ) The general promotion of retail trade activities in the area.
WHEN DOES THE BOARD MEET?
The Tweedy Mile Advisory Board meets monthly on the first Monday of the month at 6:00 p.m. The meetings are open to the public and the agendas are posted on the city's website at [email protected]
HOW DO I PROTEST?
A Public Hearing has been scheduled for the City Council to hear oral and written comments. At the end of the Public Hearing, the City Council shall determine whether sufficient protests equaling 50 percent or more of the additional tax fees proposed have been received. If sufficient protests are received, the additional tax fees shall not be approved.
Each written protest shall contain the person's name and business address. Written protests against the proposed additional tax fees shall be mailed or delivered to the City Clerk's Office, 8650 California Avenue, South Gate, California, 90280 or emailed to [email protected] no later than 5:00 p.m., on June 13, 2023. A business owner can also attend the public hearing and simply state verbally that they protest the levy of the additional tax fees. 26 PREGUNTAS FRECUENTES
ZQUe ES UN BID?
Un BID es un acr6nimo que significa "Distrito de Mejoramiento Comercial" y es una tarifa de impuesto adicional sobre la propiedad dentro de un limite geografico definido y en el que los ingresos recaudados de esta tarifa de impuesto adicional se gastan anicamente dentro de la misma 5rea. ,:CUANDO SE VENCE LA TARIFA DE IMPUESTO ADICIONAL?
La tarifa de impuesto adicional se vence y se puede pagar al mismo tiempo que la renovaci6n de la licencia comercial.
ZES ESTE UN NUEVO IMPUESTO?
No, el Concejo Municipal aprob6 el Distrito de Mejoramiento Comercial (BID) el 2 de noviembre de 1970.
Desde entonces, esta tarifa de impuesto adicional se ha renovado cada ario y las tarifas se han mantenido igual.
2QUleN ADMINISTRA El BID?
El Distrito de Mejoramiento Comercial (BID) es administrado porla Mesa Asesora de Tweedy Mile. La Mesa Asesora es nombrada por el Concejo Municipal y sirve en calidad de asesor presentando una solicitud para su aprobaci6n sobre los gastos de los ingresos recaudados de las tarifas de impuesto adicional.
ZCOMO SE CALCULAN LAS TARIFAS DE IMPUESTO ADICIONAL?
Las tarifas de impuesto adicional se determinan por los ingresos brutos anuales y varian entre S15 y S400.
Vea la lista de tarifas adjunta.
ZC6MO SE UTILIZAN LAS TARIFAS DE IMPUESTO ADICIONAL RECAUDADAS? Las tarifas de impuesto adicional recaudadas se pueden utilizar unicamente para los siguientes prop6sitos:
1. ) Decoraci6n de cualquierlugar publico en el 5rea.
2. ) Promoci6n de eventos publicos que se llevar;in a cabo en lugares publicos del area.
3. ) La promoci6n general de las actividades comerciales en el area. (:CUANDO SE REUNE LA MESA ASESORA?
La Mesa Asesora de Tweedy Mile se reGne mensualmente el primer lunes del mes a las 6:00 p.m. Las reuniones est;in abiertas al publico y las agendas se publican en el sitio web de la ciudad en www.cityofsouthgate.org
.iCC)MO PROTESTO?
Se ha programado una Audiencia Publica para que el Concejo Municipal escuche los comentarios orales y escritos. Al final de la Audiencia POblica, el Concejo Municipal determinara si se han recibido suficientes protestas equivalentes al 50 por ciento o mis de las tarifas de impuesto adicional propuestas. Si se reciben suficientes protestas, las tarifas de impuesto adicional no se aprobaran.
Cada protesta por escrito debera contener el nombre de la persona y la direcci6n comercial. Las protestas por escrito en contra de las tarifas de impuesto adicional propuestas deber;4n enviarse por correo o entregadas en persona a la oficina de la Secretaria Municipal, 8650 California Avenue, South Gate, California, 90280 o por correo electr6nico a s@[email protected] a mis tardar las 5:00 p.m. del 13 de junio de 2022. El duerto de un negocio tambien puede asistir a la audiencia publica y simplemente declarar verbalmente que protesta por las tarifas de impuesto adicional. 27 Item No. 2
City of South Gate
CITY COUNCIL
AGENDA JBYLL
For the Regular Meeting of: June 13, 2023
Originating Department: City Manager's Office
Ciffl Manager: City Manager:
Chris Je,(fers
SUBJECT: SECOND REAI)ING OF ORDINANCE N0. 2023-03-CC REPEALING CHAPTER 6.42 (SMOKING PROHIBITED IN ALL CITY-OPERATED AND CITY-
CONTROLLED BUILDINGS AND VEHICLES, AND AT EACH MUNICIPAL PARK) OF TITLE 6 (HEALTH AND SANIT ATION), AND ADOPTING NEW CHAPTER 6.24 (SMOKING PROHIBITED) AND NEW SECTIONS TO THE SOUTH GATE
MUNICIPAL CODE
PURPOSE: To consider the adoption of Ordinance No. 2023-03-CC repealing Chapter 6.42 (Smoking prohibited in all city-owned, city-operated and city-controlled buildings and vehicles, and at each municipal park) of Title 6 (Health and Sanitation) and adopting new Chapter 6.42 (Smoking Prohibited) add new sections to the South Gate Municipal Code to incorporate a more expansive description in which smoking can occur, along with a clearer definition of public areas relating to the prohibition of smoking in municipal properties, buildings, parks and public spaces.
RECOMMENDED ACTION: The City Council will consider waiving the reading in full and adopting Ordinance No. 2023-03-CC repealing Chapter 6.42 (Smoking prohibited in all city owned, city-operated and city-controlled buildings and vehicles, and at each municipal park) in its entirety and adopting new Chapter 6.42 (Smoking Prohibited) and Sections 6.42.010 (Purpose), 6.42.020 (Definitions), 6.42.030 (Posting of signs required), 6.42.040 (Enforcement) and 6.42.050 (Other applicable laws) to the South Gate Municipal Code.
FISCAL IMPACT: There is no significant impact other than the cost of publishing a Public Notice of the Public Hearing. In addition, there will be costs for updating signs referencing the smoking prohibition should the City Council adopt the new Ordinance.
PUBLIC NOTIFICATION: Advertising and notification of the public hearing for this item was conducted in compliance with Chapter 11.50 Title 11 of the South Gate Municipal Code and notice of the hearing was posted and published in the South Gate Press newspaper on May 11, 2023.
ANALYSIS: The current municipal code Chapter 6.42 prohibiting smoking in city building, properties and municipal code was last updated in 2012. It uses a more traditional approach to 1 28
smoking and has a lack of clarity concerning the various changes that have occurred in tobacco and caru"iabis-based products. One such area is the use of electronic smoking devices. In addition, use of cannabis in public spaces has become a more visible issue with the passage of Proposition 64 in 2016 by voters of the state. Ordinance No. 2023-03-CC is designed to be more inclusive of the tecffiology changes and identifying areas where the City finds a public interest to protect the public's health, safety, and welfare by prohibiting the smoking and/or use of tobacco and cannabis-based products on or in municipal property or public areas.
Ordinance No. 2023-03-CC provides for monetary penalties for violations of Chapter 6.42 of $100 for the first violation, $200 for a second violation and $500 for a third or subsequent violations.
BACKGROUND: During the regularly scheduled City Council Meeting of May 23, 2023, a public hearing was conducted, and the City Council approved the introduction of Ordinance No. 2023-03-CC.
The City Council also determined, during the Council Meeting of May 23, 2023, that the adoption of Ordinance No. 2023-03-CC was exempt from the provisions of the California Environmental Quality Act pursuant to Sections 1506(b)(2) and (b)(3) and 15308.
ATT ACHMENT: Ordinance No. 2023-03-CC
2 29
ORDINANCE N0. 2023-03-C
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, REPEALING CHAPTER 6.42 (SMOKING PROHIBITED
IN ALL CITY-OPERATED AND CITY-CONTROLLED BUILDINGS AND
VEHICLES, AND AT EACH MUNICIPAL PARK) IN ITS ENTIRETY AND ADOPTING NEW CHAPTER 6.42 (SMOKING PROHIBITED) AND SECTIONS 6.42.010 (PURPOSE), 6.42.020 (DEFINITIONS), 6.42.030 (POSTING OF SIGNS REQUIRED), 6.42.040 (ENFORCEMENT) AND
6.42.050 (OTHER APPLICABLE LAWS) OF TITLE 6 (HEALTH AND
SANIT ATION), OF THE SOUTH GATE MUNICIPAL CODE
WHEREAS, a duly noticed public hearing concerning this matter was held as required by law on May 23, 2023;
WHEREAS, the original Chapter 6.42 was originally incorporated into the South Gate Municipal Code in 1993 and subsequently amended in 2012; WHEREAS, on November 8, 2016, Proposition 64 - the Adult Use of Marijuana Act - passed in California, legalizing the use, sale, and cultivation of recreational cannabis in California for adults twenty-one (21) and over;
WHERE AS, existing California law delegates to municipalities the ability to implement stricter controls over the use, sale, and cultivation of recreational cannabis, particularly in public places such as park facilities;
WHEREAS, pursuant to the police powers delegated to it by the California Constitution, the City of South Gate has the authority to enact and update its existing laws that promote the public health, safety, and welfare of its residents, including the prohibition of smoking and/or use of tobacco and cannabis-based products on or in municipal property and facilities; and WHEREAS, the City Council of the City of South Gate seeks to ensure residents, customers, employees and visitors to such municipal facilities and properties can enjoy a healthy and safe environment from the health effects of second-hand smoke or other impacts created by smoking or using tobacco products.
NOW, THEREFOR, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The City Council does hereby declare that the above recitals are true and correct and incorporated herein by reference.
SECTION 2. Title 6 (Health and Sanitation), of Chapter 6.42 (Smoking prohibited in all city-
AS13772.0860812 4873-5418-4800vl
30 owned, city operated and city-controlled buildings and vehicles, and at each municipal park) of the South Gate Municipal Code is hereby deleted in its entirety and the following new Chapter
6.42 and Sections are added to read as follows:
Sections:
6.42.010
6.42.020
6.42.030
6.42.040
6.42.050
6.42.010
"CHAPTER 6.42
SMOKING PROHIBITED
Purpose.
Definitions.
Posting of signs required.
Enforcement.
Other applicable laws.
Purpose.
This chapter is adopted pursuant to the city's police powers, Government Code Section 7597(b), and Health and Safety Code Section 104495(h) for the purpose of prohibiting smoking in publicly accessible areas in order to protect public health and safety. Nothing contained in this chapter is intended, nor shall be construed, to conflict or limit California law. Rather, consistent with the authority of the City to impose additional restrictions, this chapter adopts regulations that supplement existing standards under California law and impose higher restrictive standards.
6.42.020 Definitions.
Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this chapter:
"Caru'iabis" has the same meaning as defined in Health and Safety Code Section 11018. "Cannabis/Marijuana product" means cannabis that has undergone a process whereby the plant material has been transformed, including, without limitation, a concentrated cannabis. "City Manager" means the city manager or designee. "Common area" means within thirty (30) feet of an indoor or outdoor area at any one or more of the following places:
l) A public y accessib e restroom;
2) A public y accessib e elevator, escalator, or stairway; 3) A public y accessib e courtyard, plaza, lobby, atrium, or patio; 4) A public y accessib e walkway, corridor, or hallway; 5) A public y accessib e seating, waiting, or reception area; and/or 6) A public y accessib e designated parking lot area or parking structure. "Electronic cigarette" has the same meaning as set forth in Cal. Code of Regulations, Title 18 Cal.
Administrative Code Section 4076 (a)(3) and similar devices intended to emulate smoking, which
A!313772.0860812 4873-5418-4800vl
31 permit a person to inhale vapors or mists that may or may not include nicotine. An electronic cigarette consists of three parts: the nicotine cartridge, the atomizer or heating element, and the battery.
"Outdoor dining area" means an unenclosed area open to the general public or closed to the public for a private :function where food, or beverage, or both, are offered, served, or consumed. "Playground" for purposes of Health and Safety Code Section 104495, means twenty-five feet from the edge of a same area within a city park or recreational area specifically designed to be used by children and that has play equipment installed in it. "Public building" has the same definition as set forth in Government Code Section 7596. "Public park" or "municipal park" means all city-owned or city leased property designated as a park boundary within the meaning of Chapter 7.49 (Park), Section 7.49.010 of the South Gate Municipal Code.
"Public place" means any unenclosed area to which the public is invited or in which the public is permitted including, without limitation, banks, education facilities, health facilities, public transportation facilities, reception areas, lobbies, restaurants, retail food production and marketing establishments, retail service establishments, retail stores, parking lots, sidewalks, plazas, sports fields, walking paths, hiking trails, bike paths, theaters, waiting rooms, offices, auditoriums, classrooms, conference and meeting rooms. "Public place" also includes any place being used for a public event, including but not limited to, a farmers' market, parade, craft fair, car show, festival, or any other event open to the general public.
"Responsible person" means any person owning, leasing, occupying, or having control or possession of real property affected by this chapter. "Smoke" means the gases, particles, or vapors released into the air as a result of combustion, electrical ignition, or vaporization by human inhalation of the byproducts, except when the combusting material contains no tobacco or nicotine and the purpose of inhalation is solely olfactory, such as, for example, smoke for incense. "Smoke" includes, but is not limited to, tobacco smoke, electronic cigarette vapor, and marijuana smoke. "Smoking" means inhaling, exhaling, burning, or carging any lighted or heated cigar, cigarette, or pipe, or any other lighted or heated tobacco or plant product intended for inhalation, whether natural or synthetic, in any manner or in any form. "Smoking" includes the use of an electronic smoking device that creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking, as defined in Business and Professions Code Section 22950.5.
6.42.030 Posting of signs required.
A. Except where other signs are required, whenever in this code smoking is prohibited, conspicuous signs must be posted so stating, containing all capital lettering not less than one inch in height in a color contrasting with the background color of the sign. To be "contrasting," it shall
AS13772.0860812 4873-5418-j+800vl
32 be sufficient if the lettering and the sign background are separate colors.
B. Forpublicbuildingsandpublicparks,itisthecitymanagerordesignee'sdutytopostsuch signs or to cause such signs to be posted.
C. Every responsible person subject to this chapter must post the signs required by this chapter within thirty days of this chapter becoming effective.
6.42.040 Enforcement.
The remedies provided by this article are cumulative and in addition to any other remedies available at law or in equity.
A. Causing, permitting, aiding, abetting, or concealing a violation of any provision of this ordinance shall constitute a violation hereof.
B. Violations of this chapter shall be prosecuted and will be punished, at a minimum, by fine of one hundred dollars ($100) for a first violation, two hundred dollars ($200) for a second violation and five hundred dollars ($500) for a third or subsequent violation.
C. Violations of this chapter are hereby declared to be public nuisances.
6.42.050 0ther applicable laws.
A. This chapter is in addition to any other prohibition or limitation on smoking under federal, state, or local law. The city council intends this chapter to supplement, and not duplicate or contradict, other applicable law.
B. This chapter shall not be construed or interpreted to permit smoking when another applicable law prohibits or restricts it. If another applicable law is more restrictive in regulating smoking, the more restrictive law shall govern.
SECTION 3. The adoption of this Ordinance is exempt from the provisions of the California Environment Quality Act pursuant to Sections 15061(b)(2) and (b)(3) and 15308.
SECTION 4. All ordinances and provisions of the South Gate Municipal Code and sections thereof inconsistent herewith shall be hereby repealed to the extent of such inconsistency and no further action is needed.
SECTION 5. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be unconstitutional or otherwise invalid, such invalidity shall not affect the validity of this entire ordinance or any of the remaining portions hereof. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses or phrases, or portion thereof be declared invalid or unconstitutional.
AS13772.0860812 4873-5418-4800vl
33 SECTION 6. This Ordinance shall take effect and be enforced on the thirty-first (31st) day after its adoption.
SECTION 7. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published as required by law.
PASSED, APPROVED and ADOPTED this 13th day of June 2023.
CITY OF SOUTH GATE:
BY:
Maria del Pilar Avalos, Mayor
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
By:
AS13772.0860812 4873-5418-z+800vl
34 AMENDED Item No. 3
CffYMANAflER!SOFFIC!
JU!4 0 G 2n,23
City of South Gate
t v'-(Xe=P' CITY COUNCIL
AeENDA BULL
Department Director:
For the Regular Meeting of': June 13, 2023
Ori a a Department: Administrative Services
City Manager:
4ffers
SUBJECT: ORDINANCE N0. 2023-02-CC AUTHORIZING AN AMENDMENT TO
THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRACT TO
IMPLEMENT A COST SHARING PROGRAM BETWEEN THE CITY AND SOUTH
GATE MUNICIPAL EMPLOYEES ASSOCIATION, SOUTH GATE PROFESSIONAL
MID-MANGEMENT ASSOCIATION, SOUTH GATE DIVISION MANAGMENT
ASSOCIATION, AND SOUTH GATE POLICE OFFICERS ASSOCIATION PURPOSE: To consider adopting Ordinance No. 2023-02-CC authorizing an amendment to the contract with the California Public Employees Retirement System ("CalPERS") to implement a cost sharing program between the City of South Gate ("City") and the Sorith Gate Municipal Employees Association ("MEA"), South Gate Professional Mid-Management Association ("PMMA"), South Gate Division Management Association ("DMA"), and Sorith Gate Police Officers Association ("POA").
RECOMMENDED ACTION: The City Council will consider waiving the reading in full and adopting Ordinance No. 2023-02-CC authorizing an amendment to the contract between the City and the Board of Administration of the California Public Employees' Retirement System implementing Section 20516 (Employees Sharing Additional Cost) to provide employee cost sharing of 1% for local miscellaneoris members in the Soutli Gate Municipal Employees Association, South Gate Professional Mid-Management Association, and South Gate Division Management Association, and 1% for classic local police members in the South Gate Police Officers Association beginning Fiscal Year 2023-24.
FISCAL IMPACT: Tlie estimated savings from implementing the cost sharing program is $212,400 in Fiscal Year 2023-2024 and an additional$l79,000 in Fiscal Year 2024-25.
NOTICING REQUIREMENTS: A public hearing notice was duly published in the South Gate Press, a newspaper of general circulation on Thursday, May 11, 2023.
ANALYSIS: At the regular City Council meeting of May 23, 2023, the City Council lieard the staff report, took public comment, and voted 5-0 to waive the reading in full and introduce tlie attached Ordinance authorizing an amendment to the contract with CalPERS to implement a cost sliaring program between tlie City and the MEA, PMMA, DMA, and POA labor groups. 1 35
Califomia retirement law allows for two types of cost sharing where employees pay a portion of the employer contribution to CalPERS. The first type of cost sharing is by CalPERS contract amendment under Government Code ("GC") F3 20516(a-e). In order for cost sharing to be effective under that method, CalPERS must first approve a contract amendment with the City. Tliis form of cost sliaring is generally more favorable for employees, as the additional employee contributions are considered by CalPERS to be "normal member contributions" and are treated as pre-tax contributions. As sucl'i, tliis is the cost-sharing method the City is proposing.
Tlie alternative metl'iod is cost sharing rinder GC § 20516(f). Tliat metliodology is between tlie City and its employees only, witliorit a CalPERS contract amendment. Under GC § 20516(f), the additional employee contributions effectively subsidize the City's CalPERS contributions and are considered after-tax contributions.
BACKGROUND: Tlie City's current contract with CalPERS provides that all employees pay the full employee sliare toward tl'ieir retirement benefit. That contribution percentage differs based on whether they are "Classic" rinit members or "PEPRA" ru'iit n'iembers. During tlie most recent contract negotiations between the City and all labor grorips, each labor grorip agreed to liave their members participate in a cost sl'iaring program. Tlie Soritli Gate Police Management Association ("SGPMA") was tlie first labor group to paiticipate in tlie cost sharing program by having all tlieir "Classic" unit members contribute 2% of their salary toward the City's share of tl'ieir retirement benefits begii'ining in FY 2022-23. The final ordinance amending tlie CalPERS contract for the cost sharing program with SGPMA was approved by the City Council at its February 14, 2023, meeting by adopting Ordinance No. 2023-01-CC.
Tlie City Council also approved tlie Tentative Agreements between the City and MEA, PMMA, DMA and POA agreeing to also participate in a cost sharing program begiru'iing in FY23-24. More specifically, in addition to a 4% Cost of Living Adjustment ("COLA") increase to base salaries in FY 2023-24 for POA, the POA agreed in tl'ie TA to liave only "Classic" unit members pay 1% towards the member's CalPERS contribution. In addition to a 3.5% COLA increase in FY 2023- 24 for MEA, PMMA, and DMA, each labor group agreed in their TA to liave botl'i "Classic" and "PEPRA" members pay an additional 1% towards tlie member's CalPERS contribution. Tlie cost sliaring program for eacl'i labor grorip is prirsuant to California Government Code 20516(a) and will be effective the full first payroll period in July 2023.
In order to proceed with amending the City's contract with CalPERS for cost sliaring, CalPERS reqriires a Resolution of Intention, an election of employees agreeing to tl'ie contract cliange, and adoption of an ordinance amending the City's contract with CalPERS. At its May 9, 2023, meeting, City Council adopted Resotution No. 2023-26-CC declaring its intent to amend the contract with CalPERS to implement a cost sharing program. Frirtliermore, tlie SGPMA conducted a secret ballot election from Mayl l- 28, 2023 and a majority of tlie members voted in favor of tl'ie proposed cost sliaring program. Tlie final step to amend tlie contract is to adopt an ordinance autliorizing an ai'nendment to tlie contract between tlie City and CalPERS. Tlie City Council voted 5-0 at the May 23, 2023, Regular City Corincil meeting to waive tlie reading in full and introduce an Ordinance authorizing an amendment to tlie contract. Staff is now recommending final adoption of Ordinance No. 2023-02-CC at today's City Corincil meeting.
2 36
ATTACHMENTS: A. Ordinance No. 2023-02-CC
B. ResolutionNo. 2023-26-CC
3 37
ATT ACHMENT A
ORDINANCE N0. 2023-02-CC
CITY OF SOUTH GATE,
LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH
GATE, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF
SOUTH GATE AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and tlieir employees iii the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by wl'iich said public agei'icies i'nay elect to subject themselves and their employees to amendments to said Law; and WHEREAS, on May 11, 2023, City Council adopted a resolution declaring tlie City's intention to approve an amendment to said contract between the Board of Administration of the California Public Employees' Retirement System and the City of South Gate; and WHEREAS, the City Council held a duly noticed public l'iearing to consider the introduction of this Ordinance and liear public testimony on May 23, 2023.
NOW, THEREFOR, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The City Council does l'iereby declare t)iat the above recitals are true and correct and incorporated l'ierein by reference.
SECTION 2. The City Council does hereby determine that an amendment to tlie contract between tlie City Council of tlie City of Soutli Gate and the Board of Administration, California Public Employees' Retirement System is liereby authorized, a copy of said ainei'idinent being attaclied hereto, marked Exhibit A, and by sucli reference made a part liereof as though ]'ierein set out in full.
SECTION 3. The Mayor of the City Council is liereby arithorized, empowered, and directed to execute said amendment for and on belialf of said Agency.
SECTION 4. If any section, sribsection, subdivision, sentence, clause, phrase, or portion of this ordinance or the application tliereof to any person or place, is for any reason held to be invalid or unconstitutional by tlie decision of ai'iy court of competent jurisdictioi'i, such decision shall not affect tlie validity of the remainder of this ordinance. Tl'ie City Council hereby declares tliat it would liave adopted tliis ordii'iance, and each and eveiy section, subsection, subdivision, sentence, clause, phrase, or poition tliereof, irrespective of the fact tliat any one of inore sections, Page l of 2
4 38
subsections, subdivisions, sentences, clarises, phrases, or portions thereof be declared invalid or unconstitutional.
SECTION 5. This Ordinance shall take effect and be in force on the thirty-first (31st) day after the date of its adoption, and prior to the expiration of 10 days from the passage thereof shall be published at least once in the South Gate Press, a newspaper of general circulation, published and circulated in the Los Angeles County and thenceforth and thereafter the same shall be in full force and effect.
SECTION 6. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published as required by law.
PASSED, APPROVED, and ADOPTED this 13th day of June 2023.
CITY OF SOUTH GATE:
By:
Maria del Pilar Avalos, Mayor
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
APPROVE AS TO FORM:
By:
5 39
A
CalPERS
EXHIBIT A
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Adminiskation
California Public Employees' Rcliicuiiut System
and the
City Council
City of South Gate
The Board of Administration, California Public Employees' Retirement System, hereinaffer referred to as Board, and the governing body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective March 1, 1949, and witnessed January 24, 1949, and as amended effective August 1, 1952, November 1, 1952, May 1, 1958, August 1, 1964, November 16, 1969, October 5 5, 1972, February 4, 1973, September 2, 1973, July 6, 1975, April 22, 1979, October 17, 1982, April 27, 1983, January 14, 2001, June 30, 2001, July 1, 2002, May 12, 2010, August 26, 2017, and March 26, 2023, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 17 are hereby stricken from said contract as executed effective March 26, 2023, and hereby replaced by the following paragraphs numbered 1 through 17 inclusive:
1, All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein un(ess otherwise specifically provided. "Normal retirement age" shall mean age 55 for classic local miscellaneous members, age 62 for new local miscellaneous members, age 50 for classic local safety members, and age 57 for new local safety members.
6 40
Public Agency shall participate in the Public Employees' Retirement System from and affer March '?, 1949, making its employees as hereinafter provided, members of said System subject to all provisions of the Pubtic Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereaffer enacted except those, which by express provisions thereof, apply only on the election of a contracting agency.
Pubfic Agency agrees to indemnify, defend and hold harmJess the California Public Employees' Retirement System (CalPERS) and its trustees, agents and employees, the CalPERS Board of Administration, and the California Public Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorney fees that may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided under the Public Agency's prior non-CaPERS retirement program. (b) Any dispute, disagreement, claim, or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public Agency and its employees (or their representatives) which relates to Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than such employees' existing retirement benefits, provisions or formulas.
(c) PublicAgency'sagreementwithathirdpartyotherthanCalPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided underthis Contract and provided for underthe California Public Employees' Retirement Law.
4. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement:
a. Local Fire Fighters (herein referred to as local safety members); b. Local Police Officers (herein referred to as local safety members); C. Employees other than local safety members (herein referred to as local miscellaneous members).
7 41
5. In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System:
a. PER530NS EMPLOYED IN THE CLASS OF CROSSING GUARD HIRED ON OR AFTER SEPTEMBER 2, '1973.
Prior to January 1, 1975, those members who were hired by Public Agency on a temporary and/or seasonal basis not to exceed 6 months were excluded from PERS membership by contract, Government Code Section 20336 superseded this contract provision by providing that any such temporary and/or seasonal employees are excluded from PERS membership subsequent to January 1, 1975. Legislation repealed and replaced said Section with Government Code Section 20305 effective July 11994.
The percentage of final compensation to be provided for each year of credited prior and current service as a classic local miscellaneous member in employment before and not on or afier July 1, 2002, shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full).
The percentage of final compensation to be provided for each year of credited prior and current service as a classic local miscellaneous member in employment on or affer July 1, 2002, sha!l be determined in accordance with Section 21354.5 of said Retirement Law (2.7% at age 55 Full).
The percentage of final compensation to be provided for each year of credited prior and current service as a new local miscellaneous member shall be determined in accordance with Section 7522.20 of said Retirement Law (2% at age 62 Full),
40, The percentage of final compensation to be provided for each year of credited prior and current service as a classic local safety member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full).
11, The percentage of final compensation to be provided for each year of credited prior and current service as a new local safety member shall be determined in accordance with Section 7522.25(d) of said Retirement Law (2,7% at age 57 Full).
12. Public Agency elected and elects to be subject to the following optional provisions:
a, Sections 21624 and 21626 (Post-Retirement Survivor Allowance). b. Section 20042 (One-Year Final Compensation) for classic members only.
8 42
Section 20614, Statutes of 1978, (Reduction of Normal Member Contribution Rate). From April 22, 1979, and until October 17, 1982, the normal local miscellaneous member contribution rate shall be
3.5% and 4.5o/o for local safety members, Legislation repealed said Section effective September 29, 1980.
d. Section 20690, Statutes of 1980, (To Prospectively Revoke Section 20614, Statutes of 1978),
e. Section 21024 (Military Service Credit as Public Service) for local miscellaneous members only.
Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members only.
Section 21574 (Fourth Level of 1959 Survivor Benefits) for local miscellaneous members only.
h, Section 20903 (Two Years Additional Service Credit).
Section 21583 (Additional Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members only.
Section 20516 (Employees Sharing Additional Cost):
From and affer March 26, 2023, 2% for classic local police members in the South Gate Police Management Association.
From and after the effective date of this amendment to contract, 1% for local miscellaneous members in the South Gate Municipal Employees Association
From and affer the effective date of this amendment to contract, 1 % for local miscellaneous members in the South Gate Professional Mid- Management Association.
From and after the effective date of this amendment to contract, 1 % for local miscellaneous members in the South Gate Division Management Association
From and affer the effective date of this amendment to contract, I % for c!assic local police members in the South Gate Police Officers' Association
9 43
The portion of the employer's contribution that the member agrees to contribute from his or her compensation, over and above the member's normal contribution ("Cost Sharing Percentage"), shall not exceed the Employer Normal Cost Rate, as that rate is defined in the CalPERS Actuarial Valuation for the relevant fiscal year, If the Cost Sharing Percentage will exceed the relevant Employer Normal Cost Rate, the Cost Sharing Percentage shall automatically be reduced to an amount equal to, and not to exceed, the Employer Normal Cost Rate for the relevant fiscal year.
13. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on July 6, 1975.
Accumu(ated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834,
14, Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members and local safety members of said Retirement System.
15. PublicAgencyshallalsocontributetosaidRetirementSystemasfollows:
a. A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law. b. A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law, 16, Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Pubiic Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law,
10 44
17. ContributionsrequiredofPublicAgencyanditsemployeesshallbepaidby Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board.
B. This amendment shall be effective on the day of
BOARD OF ADMiNlSTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
CITY OF SOUTH GATE
BY BY
PROGRAMS DMSION ,@
AMENDMENT CalPERS ID #7499696720
PERS.CON-702A
11 45
ATT ACHMENT B
RESOLUTION N0. 2023-26-CC
CITY OF SOUTH GATE,
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH
GATE, CALIFORNIA, DECLARING THE CITY'S INTENTION TO
APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD
OF ADMINISTRATION OF THE CALIFORNIA PUBLIC F,MPLOYEF,S'
RETIREMENT SYSTEM AND THE CITY OF SOUTH GATE
WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and WHERF,AS, one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Section 20516 (Employees Sharing Additional Cost) of 1% for local miscellaneous members in the South Gate Municipal Employees Association, South Gate Professional Mid-Management Association, South Gate Division Management Association, and 1% for classic local police members in the South Gate Police Officers Association.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVF, AS FOLLOWS:
SECTION 1. The City Council does hereby declare that the above recitals are true and correct and incorporated herein by reference.
SECTION 2. The City Council does hereby give notice of intention to approve an amendment to the contract between the City and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto as "Exhibit A," and by this reference made a part hereof.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution which shall be effective upon its adoption.
12 46
PASSED, APPROVED, and ADOPTED on this 9'h day of May 2023.
Maria del Pilar Avalos, Mayor
ATTEST:
By:
Ill, II 'l "
APPROVED AS TO FORM:
F. Salinas, City Attorney
i
13 47
I A
CalPERS EXHIBIT A
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Adminiskation
California Public Employees' RcLixiuiixil System
and the
City Council
City of South Gate
.*
The Board of Administration, California Public Employees Retirement System, hereinafter referred to as Board, and the governing body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective March 1, 1949, and witnessed January 24, 1949, and as amended effective August 1, 1952, November 1, 1952, May 1, 1958, August 1, 1964, November 16, 1969, October 15, 1972, February 4, 1973, September 2, 1973, July 6, 1975, April 22, 1979, October 17, 1982, April 27, 1983, January 14, 2001, June 30, 2001, July 1, 2002, May 12, 2010, August 26, 2017, and March 26, 2023, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through '17 are hereby stricken from said contract as executed effective March 26, 2023, and hereby replaced by the following paragraphs numbered 1 through 17 inclusive:
i
1. All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 55 for classic local miscellaneous members, age 62 for new local miscellaneous members, age 50 for classic local safety members, and age 57 for new local safety members.
14 48
Public Agency shall participate in the Public Employees' Retirement System from and affler March 1, 1949, making its employees as hereinaffler provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a mntracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency, PublicAgencyagreesto indemnify, defend and hold harmlessthe California Public Employees' Retirement System (CaPERS) and its trustees, agents and employees, the CalPERS Board of Administration, and the California Public Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorney fees that may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions orformulas provided underthe Public Agency's prior non-CaPERS retirement program. (b) Any dispute, disagreement, claim, or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public Agency and its employees (or their representatives) which relates to Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than such employees' existing retirement benefits, provisions or formulas.
a
(c) PublicAgency'sagreementwithathirdpartyotherthanCalPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided underthis Contractand provided forunderthe California Public Employees' Retirement Law.
4, Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement:
a. Local Fire Fighters (herein referred to as local safety members); b. Local Polioe Officers (herein referred to as local safety members); C. Employees other than local safety members (herein referred to as local miscellaneous members).
15 49
i
i
gi
5. In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System:
a. PERSONS EMPLOYED IN THE CLASS OF CROSSING GUARD
HIRED ON OR AFTER SEPTEMBER 2, "1973.
Prior to January 1, 1975, those members who were hired by Public Agency on a temporary and/or seasonal basis not to exceed 6 months were excluded from PERS membership by contract, Govemment Code Sedion 20336 superseded this contract provision by providing that any such temporary and/or seasonaf employees are excluded from PERS membership subsequent to January 1, 1975. Legislation repealed and replaced said Section with Govemment Code Section 20305 effective July 1, 1994.
The percentage of final compensation to be provided for each year of credited prior and current service as a classic local miscellaneous member in employment before and not on or afier July 1, 2002, shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full).
The percentage of final compensation to be provided for each year of credited prior and current service as a classic local miscellaneous member in employment on or affer July 1, 2002, shall be determined in accordanoe with Sedion 21354.5 of said Retirement Law (2,7% at age 55 Full), The percentage of final compensation to be provided for each year of credited prior and current servioe as a new local mis>llaneous member shall be determined in accordance with Section 7522.20 of said Retirement Law (2% at age 62 Full).
10. The peroentage of final compensation to be provided for each year of credited prior and current service as a classic local safety member shall be determined in accordancewith Section 21362,2 ofsaid Retirement Law (3% at age 50 Full).
11, The peroentage of final compensation to be provided for each year of credited prior and current service as a new local safety member shall be determined in accordanoe with Section 7522.25(d) of said Retirement Law (2,7% at age 57 Full).
12. Public Agency elected and elects to be subject to the following optional provisions:
a. Sections21624and21626(Post-RetirementSurvivorAllowanoe). b. Section 20042 (One-Year Final Compensation) for classic members only.
16 50
Section 20614, Statutes of 1978, (Reduction of Normal Member ContributionRate). FromApril22,1979,anduntilOctober17,1982, the normal local miscellaneous member contribution rate shall be
3.5% and 4.5% for local safety members. Legislation repealed said Section effective September 29, 1980.
d. Section 20690, Statutes of 1980, (To Prospectively Revoke Section 206'l4, Statutes of 1978).
e, Section 21024 (Military Service Credit as Public Service) for local miscellaneous members only.
f, Sedion 20965 (Credit for Unused Sick Leave) for local miscellaneous members only.
g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local miscellaneous members only.
h. Section 20903 (Two Years Additional Service Credit).
Section 21583 (Additional Opportunity to Elect 1959 Survivor Beneflts) for loml miscellaneous members only.
Section 20516 (Employees Sharing Additional Cost):
From and afier March 26, 2023, 2% for classic local police members in the South Gate Police Management Association
From and after the effective date of this amendment to contract, 1% for lowl miscellaneous members in the South Gate Municipal Employees Association
From and affer the effective date of this amendment to contrad, 1% for local miscellaneous members in the South Gate Professional Mid- Management Association
From and afier the effective date of this amendment to oontract, 1 % for local miscelfaneous members in the South Gate Division Management Association
From and affer the effective date of this amendment to mntract, 1% for classic local police members in the South Gate Police Officers' Association
a
17 51
i
The portion of the employer's contribution that the member agrees to contributefrom his orhercompensation, overand abovethemember's normal contribution ('Cost Sharing Peroentage"), shall not exceed the Employer Normal Cost Rate, as that rate is defined in the CalPERS Actuarial Valuation for the relevant fiscal year. If the Cost Sharing Percentage will exceed the relevant Employer Normal Cost Rate, the Cost Sharing Percentage shall automaticalty be reduced to an amount equal to, and not to exceed, the Employer Normal Cost Rate for the relevantfiscal year.
13, PublicAgen@,inaccordan>withGovernmentCodeSection20790,ceased to be an "employer" for purposes of Section 20834 effective on July 6, 1975.
Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834,
14. Public Agency shall oontribute to said Retirement System the contributions determined by actuarial valuations of prior and future servioe liability with respect to local miscellaneous members and local safety members of said Retirement System,
15. PublicAgencyshallalsocontributetosaidRetirementSystemasfollows:
a. A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to oover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law, b. A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the msts of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law,
16. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law.
18 52
17, ContributionsrequiredofPublicAgencyanditsemployeesshallbepaidby Public Agency to the Retirement System within fiffleen days afier the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board.
B, This amendment shall be effective on the day of BOARD OF ADMfNISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
CITY OF SOUTH GATE
AMENDMENT CalPERS ID #7499696720
PERS-CON-702A
i
i
i
19 53
a ST ATE OF CALIFORNIA
COUNTY OF LOS ANGELES ) SS
CITY OF SOUTH GATE
I, Yodit Glaze, City Clerk of the City of South Gate, Califomia, hereby certify that the whole number of Members of the City Council of said City is five; that ResolutionNo. 2023-26-CC was adopted by the City Council at their Regular Meeting held on May 9, 2023, by the following vote:
Ayes: Council Members: Avalos, Barron, Davila, Hurtado and Rios Noes: Council Members: None
a
Absent: Council Members: None
Abstain: Council Members: None
Recused: Council Member: None
Witness my hand and the seal of said City on May 17, 2023.
Yodit Glaze, Clerk
City of South , California
54 Item No. 4
CffYMANAGER'SOFFICE
Cil of South Gate
JUN 0 7 2023 CITY COUNCIL
AGENDA BJILL
Department Director:
For the R ar Meeting of: June 13, 2023
ent: Public Works
Cervantes Chris effers
SUBJECT: RESOLUTION DECLARING A CONTINUED EMERGENCY AND
AUTHORIZING REPAIR, REPLACEMENT OR MAINTENANCE ACTIVITIES OF PUBLIC FACILITIES RELATED TO THE URBAN ORCHARD, CITY PROJECT NO. 539-PRK WITHOUT PUBLIC BIDDING, PURSUANT TO THE EMERGENCY
CONTRACTING PROCEDURES OF THE SOUTH GATE MUNICIPAL CODE AND
THE CALIFORNIA PUBLIC CONTRACT CODE
PURPOSE: To declare an emergency still exists and to authorize the repair, replacement or maintenance activities of public facilities related to the Urban Orchard Project without public bidding. The Los Angeles County Department of Public Health, Solid Waste Division ("County") issued a Corrective Action Order requiring construction to stop on the project. The declaration of emergency is necessary to streamline the process to procure a replacement contractor to provide maintenance activities to preserve the site in a safe condition until the County authorizes construction work on the project to resume.
RECOMMENDED ACTIONS: The City Council will consider making a finding and adopting a Resolution declaring an emergency still exists and authorizing repair, replacement or maintenance activities of public facilities related to the Urban Orchard, City Project No. 539- PRK, without public bidding, pursuant to the emergency contracting procedures of the South Gate Municipal Code and the California Public Contract Code.
FISCAL IMPACT: There is no impact to the General Fund. The Urban Orchard Project ("Project") has received a total of $25.5 million in grant and other funds for design, construction, operations, and maintenance, as summarized below. The process has begun to enter into an agreement with Caltrans to receive an additional $5 million.
ANALYSIS: The Project was under construction and approximately 80% of construction work has been completed. On December 29, 2022, the City received a Corrective Action Order ("Order") from the Corinty. The Order required the City to stop all construction activities until such time as a Post Closure Land Use Plan ("PCLUP") for the Project site was approved by the County. Given the PCLUP approval process and input received to date, it will take at least several months, possibly six or more, to obtain approval. 1 55
To avoid the significant delay damages that would be payable by the City to the general contractor during a prolonged suspension of the project pending approval of the PCLUP, the City Council terminated the general contractor's agreement at a Special City Council meeting on February 6, 2023. Such termination provided both immediate and long-term cost savings to the City but also created an immediate need for the City to retain an interim contractor to perform certain ongoing maintenance and safety activities; a need which must be met sooner than the time necessary to engage in normal public bidding procedures The proposed Resolution declares a continued emergency exists pursuant to the authority granted by South Gate Municipal Code § 1.54.470 and California Public Contract Code § 22050. Those Code Sections allow cities, by resolution, to approve the City's entry into contracts without engaging in public bidding where certain emergency conditions are found to have occurred. Staff continues to believe that the County's Order directing all construction work to be ceased on the Project, constitutes such an emergency due to the public's safety with an unfinished construction site and the need to respond accordingly to additional directives given by the County related to ensuring public safety. Staff is recommending that the City Council adopt the proposed Resolution so that the City can avail itself of the accelerated contracting procedures authorized by those Code Sections. The Resolution, (l) declares an emergency, (2) authorizes the City Manager to take such actions deemed necessary to cause the maintenance activities to be performed and to procure the necessary equipment, services, and supplies all without giving notice for bids for contracts, (3) requires that at each regularly scheduled City Council Meeting, the City Manager present to the Council the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids, why that action is necessary to respond to the emergency, and that the City Council review the emergency action to determine, by a four-fi'fth's vote, that there is a need to continue the emergency action until the emergency action is terminated.
The City is working diligently to secure the PCLUP approval. The process has been initiated with the submittal of technical documents such as the Workplan for interim measures and a Summary of Site Investigation.
Since the original Resolution declaring an emergency was approved by the City Council on February 6, 2023, the following contracts, expenditures, and milestones have been undertaken:
1. NR Development Inc., was informed that Contract No. 2021-66-CC was terminated by the City Council effective February 13, 2023, except for maintenance activities. Staff met with NR Development Inc., to discuss the steps to close out construction activities and continue maintenance activities. As of February 16, 2023, NR Development Inc., is no longer providing any project services or maintenance activities.
2. City forces are providing maintenance services of the site. The site has been secured with perimeter fencing and security contract services.
3. Coordination with the Trust for Public Land ("TPL") to complete the process to prepare the technical documents necessary to secure a replacement contractor was completed. Preliminarily selected a recommended interim contractor; conducted a field 2 56
review; and received a fee proposals for the interim maintenance and construction activities approved by the Local Enforcement Agency ("LEA"). Received a proposal from the contractor and have begun negotiations.
4. Submitted to the LEA the Summary of Investigations Report, Workplan of Interim Control Measures ("WICM"), Supplemental WICM and Phase II Workplan. Received approval of the WICM and conditional approval of the Phase II Workplan. Submitted a revised WICM as requested by the LEA. Submitted the revised Phase II Workplan on April 18, 2023. On May 9, 2023, the LEA approved the Revised WICM for which the safety measures were implemented by May 12, 2023.
5. Approved a funding increase for TPL in the amount of $50,000. On January 24, 2023, the City Council approved a $250,000 budget for Amendment No. 6 to Contract No. 3352 with TPL, however, Amendment No. 6 had a budget requirement of $300,000. A budget increase of $50,000 was administratively approved to align the amount of the budget authority with the $300,000 budget requirement for Amendment No. 6, which provides funding for the technical services required to comply with requirements from the LEA.
6. A $2,919,248 bid was received from LA Engineering to complete the construction of maintenance activities in the WICM approved by the LEA for the Urban Orchard Project. A construction contract is being processed and executed administratively under the authority granted by the subject resolution.
BACKGROUND: The Project is a part of the FY 2022/23 Capital Improvement Program. The Project is located between the Los Angeles River, Firestone Boulevard, the Thunderbird Villa Mobile Home Park, and the I-710 Freeway. Two primary purposes of the Project are to divert and treat storm water run-off from the Los Angeles River and provide recreation opportunities to South Gate residents.
The Project is being constructed on a property that was used as an unpermitted landfill until 1949 by an entity known as Southeastern Disposal and By-Products. The property site is identified in CalRecycle's Solid Waste Information System ("SWIS") as an Unpermitted Closed Solid Waste Disposal Site and SWIS No. 19-AA-5545. In 1984, the State of California Department of Health Services, Toxic Substances Control Division concluded that the clean-up work completed effectively mitigated waste constituents to proceed with the Lewis Homes residential development project. The requirements of the PCLUP came into effect in 1988. As such, the project site is subject to State solid waste regulations that require the PCLUP before any change to the current land use, construction, or land preparation can occur.
The Los Angeles County Department of Public Health, Solid Waste Management Program, acts as the LEA for the State of California's Department of Resources Recycling and Recovery ("CalRecycle"). The County is authorized by Division 30 of the Public Resources Code ("PRC"), Section 43209 and 45000, Title 14 and 27 of the California Code of Regulations (14 CCR & 27 CCR), to enforce applicable solid waste regulations and to ensure solid waste sites 3 57
meet the state minimum standards within the County of Los Angeles. As such, the City is working with the LEA to obtain approval of the PCLUP.
Construction is currently at the 80% completion stage. Improvements that have been substantially completed include, but are not limited to, rough grading, drop inlet for storm water diversion structures in the Bandini Channel, a wetland overlook area, the stream adjacent to the education/flexible space building and wetland, south bio swale, construction of 18 raised planters, planting of 75 trees, installation of the prefabricated education center and the restroom/maintenance building, two shade structures, a water element at the playground, installation of multi-use walking and bicycle pathways, exercise equipment located at various stages along the walking and bicycle paths, benches, picnic tables, drinking fountains, trash cans, and pathway lighting. The total estimated cost of improvements completed to date is over $12 million.
The Project has received the listed grants. The process has begun to enter into an agreement with Caltrans to receive an additional $5 million for a grand total of $30.5 million.
Grants Amount Grant Recipient
State Water Resource Control Board (Prop l) $7,975,100 City
Land and Water Conservation Fund (LWCF) $3,000,000 Los Angeles County Flood Control District $530,000 Safe Clean Water- Municipal Funds $1,435,401
Safe Clean Water- Regional Funds $5,438,000
State Parks- Prop. 68 Grant $1,919,847
Conservation Corp of Long Beach $713,015
Rivers and Mountains Conservancy Funds $4,404,798 TPLPrivate Donations $90,000 Total $25,506,161
ATTACHMENT: Proposed Resolution
GD:lc
4 58
Attachment A
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SOUTH GATE, ST ATE OF CALIFORNIA, DECLARING AN
EMERGENCY STILL EXISTS AND AUTHORIZING
REPAIR, REPLACEMENT OR MAINTENANCE
ACTIVITIES OF PUBLIC FACILITIES RELATED TO THE
URBAN ORCHARD PROJECT WITHOUT PUBLIC
BIDDING, PURSUANT TO THE EMERGENCY
CONTRACTING PROCEDURES OF THE SOUTH GATE
MUNICIPAL CODE AND THE CALIFORNIA PUBLIC
CONTRACT CODE
WHEREAS, at the Special City Council meeting on February 6, 2023, the City Council for the City of South Gate ("City") considered and passed a Resolution declaring an emergency and authorized the repair, replacement or maintenance activities of public facilities related to the Urban Orchard Project ("Project") pursuant to the emergency contracting procedures of the South Gate Municipal Code and the California Public Contract Code; and WHEREAS, construction activities at the Project site began on August 2, 2021, and have reached the eighty percent completion stage, but the Project will require several more months of work before it is complete; and
WHEREAS, the City has received notice from the Los Angeles County Depaitment of Public Health, Solid Waste Management Program ("County"), demanding that the City immediately cease all construction work on the Project until such time that a Post Closure Land Use Plan ("PCLUP") is submitted to the County for approval before any change to the current land use, construction, or land preparation can occur to comply with the requirements of the California Code of Regulations, Title 27 (27 CCR), Section 21190 (the "Cease and Desist and Corrective Action Order"); and
WHEREAS, the City has terminated its construction agreement with the contractor, except for the requirement for the contractor to perform certain maintenance activities; and WHEREAS, although no construction activities will occur at the Project site until the County issues its PCLUP, it will be necessary in the interim for certain minimal maintenance activities to be performed at the site for the protection of the existing improvements and/or for public safety (collectively, the "Maintenance Activities"); and WHEREAS, at a special meeting of the South Gate City Council ("Council") held on Monday, February 6, 2023, the Council received information provided by the City's Public Works Department establishing that the City does not have sufficient manpower to perform the Maintenance Activities with its own forces, and that the immediate need for the performance of the Maintenance Activities does not permit a delay that would result from a competitive solicitation for bids.
59 NOW, THERF,FOR, BASED ON THE FACTS SET FORTH ABOVE, THE COUNCIL OF
THE CITY OF SOUTH GATE, CALIFORNIA, HERF,BY MAKES THE FOLLOWING FINDINGS:
1. The County's issuance of the Cease and Desist and Corrective Action Order at the current stage of the Project work, coupled with the immediate and ongoing need to perform the Maintenance Activities, has created an emergency for the City with respect to the Project; and
2. The emergency will not permit a delay resulting from a competitive solicitation for bids to perform the Maintenance Activities; and
3. The actions to be taken pursuant to the Resolutions set forth below continue to be necessary to respond to the emergency.
NOW, THEREFOR, THE COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVES AS FOLLOWS:
SECTION 1. The City Council does hereby declare that the above recitals and findings are true and correct and incorporated herein by reference.
SECTION 2: Pursuant to the authority granted by South Gate Municipal Code § 1.54.470 and California Public Contract Code § 22050, the Council hereby authorizes and directs the City's City Manager and his designees to take such actions as the City Manager deems necessary to cause the Maintenance Activities to be performed, and to procure the necessary equipment, services, and supplies therefore, all without giving notice for bids to let contracts, and without regard to the dollar amounts of the contracts for such activities, equipment, services and supplies.
SECTION 3: At each regularly scheduled meeting of the Council a:tter the date of the original Resolution, dated February 6, 2023, until further notice from the Council, the City Manager has and shall continue to present to the Council the reasons justifying the emergency, that the emergency declaration will reduce delays and associated costs that would otherwise result from the competitive solicitation for bids and why that action is necessary to respond to the emergency.
SECTION 4. At each such regularly scheduled meeting until the emergency action is terminated, the Council shall review the emergency action to determine, by a four-fifth's vote, that there is a need to continue the emergency action.
SECTION 5. The Council shall terminate the emergency action at the earliest possible date that conditions warrant, so that the remainder of the Maintenance Activities may be completed by giving notice for bids to let contracts.
SECTION 6. In accordance with the provisions of California Public Contract Code § 22050, this Resolution shall only be effective if passed by a four-fi'tths vote of the Council.
60 SECTION 7. The City Clerk shall certify to the adoption of this Resolution, which shall be effective upon its adoption.
PASSED, APPROVED and ADOPTED this 13th day of June, 2023.
CITY OF SOUTH GATE:
By:
Maria del Pilar Avalos, Mayor
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
By:
/\ai'\:<aii/n;,ci'"EP"
61 Item No. 5
CITYMANAOER'SDFFICE
JUNO72023 C'UyofSouthGate
'7:'%4&' CITY COUNCIL
AGENJDA IBJ[LL
For the Regular Meeting of: June 13, 2022
a a - Departmenj: Public Works
SUBJECT: RESOLUTION ADOPTING THE LOCAL STREETS AND ROADS FUNDING PROGRAM PROJECT LIST FOR FISCAL YEAR 2023/24 TO COMPLY WITH SENATE BILL 1 REQUIREMENTS
PURPOSE: To fulfill the state requirement for the City to adopt the Local Streets and Roads Funding Program Ploject List via Resolution by July 1, 2023, in order to receive its annual of SB l 'funds. The City is receiving an estimated $2,305,385 in Senate Bill ("SB 1") funds from the State of California for the Fiscal Year 2023/24.
RECOMMENDED ACTION: The City Council will consider adopting a Resolution adopting the Local Streets and Roads Funding Program Project List for Fiscal Year 2023/24 to program $650,000 in Senate Bill I funds for the Tweedy Mile Complete Streets, City Project No. 614-ST, $850,000 for the Citywide Residential Resurfacing Phase I, City Project No. 637-ST, $480,385 for the Citywide Residential Resurfacing Phase IV, City Project No. 699-ST, $225,000 for the Tweedy Mile Complete Streets Phase II, City Project No. 717-ST, and $100,000 for the Tweedy Mile Uncontrolled Crosswalks, Project No. 650-ST, in compliance with Senate Bill 1 requirements.
FISCAL IMPACT: There is no impact to the General Fund. The Fiscal Year 2023/24 SB 1 funding allocation is proposed to be programmed as follows:
Pm,ject Title SB 1 Fiu'ids Fiscal Year Account No.
Tweedy Mile Complete Streets, City
Pro.ject No. 614-ST $650,000
2023/24
311-790-31-9585
Citywide Residential Resurfacing, Phase
I, City Pro.iectNo. 637-ST
$850,000 311-790-31-9583
Citywide Residential Resurfacing, Phase
IV, City Pro.iect No. 699-ST
$480,385 311-790-31-9598
Tweedy Mile Complete Streets, Phase II,
City Pro.iect No. 717-ST
$225,000 311-790-31-9599
Tweedy Mile Uncontrolled Crosswalks,
City Pro.ject No. 650-ST $100,000 311-790-39-9589
Total $2,305,385
1 62
ANALYSIS: The state requires recipient agencies to program SB 1 funds by adopting a Resolution to approve the Local Streets and Roads Funding Program Project List. The Local Streets and Roads Funding Program Project Lists consists of qualifying projects as defined in the Senate Bill 1 Guidelines. According to the guidelines, qualifying projects include Road Maintenance Rehabilitation, Safety Projects, Railroad Grade Separations, Complete Streets Components (including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, drainage and stormwater capture projects in conjunction with any other allowable project), and Traffic Control Devices. The projects before the City Council meet these requirements.
BACKGROUND: In an effort to address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road systems, on April 28, 2017, SB I which is also known as Road Repair and Accountability Act of 2017, was approved and signed by the Governor. Annually, the program allocates approximately $223 million statewide of which the City receives an annual distribution.
According to the SB l guidelines adopted by the state, the City must adopt a Resolution to approve a project list to allocate the SB I funds, in order to receive annual program funds.
Staff is recommending that the $2.3 million SB 1 funding allocation for Fiscal Year 2023/24 be programmed as follows, which is consistent with the 5-Year Capital Improvement Program:
* Tweedy Mile Complete Streets, City Project No. 614-ST: The project is currently programed with State Grant funding and Prop C totaling $6,350,000. It is recommended that $650,000 be programmed in addition to those funds for construction costs in Fiscal Year 2023/24. The project will redesign Tweedy Blvd within the Tweedy Mile District with a complete streets design to enhance safety, for traffic calming and to rehabilitate existing infrastructure. The project is in the design phase and scheduled to begin construction in 2024.
* Citywide Residential Resurfacing, Phase I, City Project No. 637-ST: The project is funded by SB 1, Measure M and Measure R funds. It is recommended that $850,000 be programmed for construction costs to resurface road pavements and repair sidewalks on residential streets. The project is currently under construction. The Council programmed $850,000 in SB l funds for the construction contract. Therefore, it is now necessary to program the funds with the state.
* Citywide Residential Resurfacing, Phase IV, City Project No. 699-ST: The project is funded by General Fund, and SB l funds. It is recommended that $480,385 be programmed for construction costs. The project will resurface road pavements and repair sidewalks. The project is currently in the design phase and scheduled to begin construction in FY 2023/2024.
* Tweedy Mile Complete Streets, Phase II, City Project No. 717-ST: The City Council will be requested to approve the FY 2023/24 Capital Improvement Program and 5-Year Capital Improvement Program in June of 2023 which includes this as a new project. It is recommended that $225,000 be prograrnrned to begin the design phase. The project will redesign Tweedy Blvd between the LA River and Dorthey Avenue and between Alameda 2 63
Street and Dearborn Avenue with a complete streets design to enhance safety, for traffic calming and to rehabilitate existing infrastructure. Design is expected to begin in FY 2023/24.
* Tweedy Mile Uncontrolled Crosswalks, City Project No. 650-ST: The project is funded by state grant funding which requires a local match. It is recommended that $100,000 be programmed for construction costs to meet local match requirements. The project will enhance several crosswalks along the Tweedy Mile Shopping District with traffic equipment to improve safety. The project is in the construction phase.
ATT ACHMENTS: Proposed Resolution
Proposed Local Streets and Roads Funding Program Project List SB-1 Revenue Projections
Senate Bill No.l (Available for review in the City Clerk's office) Citywide Residential Resurfacing, Phase I Vicinity Map Citywide Residential Resurfacing, Phase IV Vicinity Map IB:lc
3 64
Attachment A
RESOLUTION NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
RF,SOLUTION OF THE CITY COUNCIL OF THE CITY OF
SOUTH GATE, CALIFORNIA, ADOPTING THE LOCAL
STREETS AND ROADS FUNDING PROGRAM PROJECT
LIST FOR FISCAL YF,AR 2023/24 TO PROGRAM $650,000 IN SENATE BILL l FUNDS FOR THE TWEEDY MILE
COMPLETE STREETS, CITY PROJECT NO. 614-ST,
$850,000 FOR THE CITYWIDE RESIDENTIAL
RESURFACING PHASE I, CITY PROJECT NO. 637-ST,
$480,385 FOR THE CITYWIDE RESIDENTIAL
RESURFACING PHASE IV, CITY PROJECT NO. 699-ST,
$225,000 FOR THE TWEEDY MILE COMPLETE STREETS
PHASE II, CITY PROJECT N0. 717-ST, AND $100,000 FOR
THE TWEEDY MILE UNCONTROLLED CROSSWALKS,
CITY PROJECT N0. 650-ST, IN COMPLIANCE WITH
SENATE BILL 1 REQUIREMENTS
WHERF,AS, Senate Bill l ("SB 1"), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement; and WHEREAS, the City, will receive an estimated $2,305,385 in RMRA :tunding in Fiscal Year 2023/24 from SB 1; and
WHEREAS, this is the 7"1 year in which the City is receiving SB l funding which will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repair and replace aging bridges, and increase access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used for the most high-priority and cost-effective projects that also meet the community's priorities for transportation investment; and
65 WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate streets and roads and add active transportation infrastructure throughout the City this year and for future years; and
WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City's streets and roads are in "poor" condition and this revenue will help increase the overall quality of our road system and over the next decade will improve the condition of our streets and roads; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety; investing in complete streets infrastructure; and using cutting-edge technology, materials, and practices will have significant, positive co-benefits statewide.
NOW, THEREFOR, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council does hereby declare that the above recitals are true and correct and incorporated herein by reference.
[Remainder of page left blank intentionally.]
f 66
SECTION 2. The City Council does hereby adopt the following Local Streets and Roads Funding Program List of proposed projects that will be funded in-part or solely with Fiscal Year 2023/24 Road Maintenance and Rehabilitation Account revenues:
Project Title Description Location
SB 1
Budget
Est.
Project
Schedule
Est.
Useful
Life
1. Tweedy Mile
Complete
Streets, City
Project No.
614-ST
The project will redesign
Tweedy Blvd with a complete
streets concept to improve
safety, resurface the road
pavement and repairs
sidewalks.
Tweedy Blvd.
from Dearborn
to Hildretl'i
$650,000 11/2023 -
06/2024
15 Years
2. Citywide
Residential
Resurfacing
Phase I;
City Project
No. 637-ST
The project will rehabilitate
residential streets to extend
the life of aging roadway
pavement, per the City's
Pavement Management
System, and repair sidewalks.
Citywide $850,000 On-going 15
Years
3. Citywide
Residential
Resurfacing
Phase IV;
City Project
No. 699-ST
The project will rehabilitate
residential streets to extend
the life of aging roadway
pavement, per the City's
Pavement Management
System, and repair sidewalks.
Citywide $480,385 09/2023 -
06/2024
15 Years
4. Tweedy Mile
Complete
Streets, Phase
II, City
Project No.
717-ST
The project will redesign
Tweedy Blvd with a complete
streets concept to improve
safety, resurface the road
pavement and repairs
sidewalks.
Tweedy Blvd.
from West
City Limit to
Dearborn and
from Hildreth
to LA River
$225,000 09/2023 -
06/2024
15 Years
5. Tweedy Mile
Uncontrolled
Crosswalks,
City Project
No. 650-ST
Crosswalk safety
improvements at various
locations 011 Tweedy Blvd.
I
Tweedy Blvd.
from Dearborn
to Hildreth
$100,000 09/2023 -
06/2024
15 Years
[Remainder of page left blank intentionally.]
67 SECTION 3. The City Clerk shall attest to and certi:ty the passage and adoption of the Resolution which shall be effective upon its adoption.
PASSED, APPROVED and ADOPTED this 13th day of June 2023.
CITY OF SOUTH GATE:
By:
Maria del Pilar Avalos, Mayor
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
B7:
i?.Eii?cit0'."e,"""'
68 Project Name Project Description FY 2023/24
SB-1 Portion
Fiscal Year Estimated
Proiect Schedule
1. Tweedy Mile Complete Streets, City
Project No. 614-ST
The project will redesign Tweedy Blvd.
with a complete streets concept to
improve safety, resurface the road
pavement and repairs sidewalks.
$650,000 2023/24 11/2023 -
06/2024
2. Citywide Residential Resurfacing Phase I;
City Project No. 637-ST
The project will rehabilitate residential
streets to extend the life of aging
roadway pavement, per the City's
Pavement Management System, and
repair sidewalks.
$850,000 2023/24 09/2023 -
06/2024
3. Citywide Residential Resurfacing Phase
IV;
City Project No. 699-ST
The project will rehabilitate residential
streets to extend the life of aging
roadway pavement, per the City's
Pavement Management System, and
repair sidewalks.
$480,385 2023/24 09/2023 -
06/2024
4. Tweedy Mile Complete Streets, Phase II,
City Project No. 717-ST
The project will redesign Tweedy Blvd.
with a complete streets concept to
improve safety, resurface the road
pavement and repairs sidewalks.
$225,000 2023/24 09/2023 -
06/2024
5. Tweedy Mile Uncontrolled Crosswalks,
City Project No. 650-ST
Crosswalk safety improvements at
various locations on Tweedy Blvd.
$100,000 2023/24 09/2023 -
06/2024
City of South Gate
Local Streets and Roads Funding Program Project List FY 2023/24 69 Local Streets and Roads Projected Revenues
2022-23
Hwy Users Tax
Account
Road Mntnc
Rehab Acct
TOTAL Hwy Users Tax
Account
Road Mntnc
Rehab Acct
TOTALEstimated January 2023
SANTA FE SPRINGS
SANTA MONICA
SIERRA MADRE
SIGNAL HILL
SOUTH EL MONTE
SOUTH GATE
SOUTH PASADENA
TEMPLE CITY
TORRANCE
VERNON
WALNUT
WEST COVINA
WEST HOLLYWOOD
WESTLAKE VILLAGE
WHITTIER
County of Los Angeles
Total Cities & County: Los Angeles
482,790
2 ,370,022
290,203
3 04,956
506,652
2 ,368,204
691 ,963
933,644
3 ,724,845
11,130
729,199
2,783,686
912,576
212,609
2,233,608
1 77, 1 04,727
405,1 95,777
406,936
2,024,185
242,453
255,119
426,564
2 ,022,623
584,802
792,293
3 ,185,200
4 ,576
6al6,770
2,377,183
774,205
176,694
I ,907,069
130,626,227
325,622,016
889,726
4 ,394,208
5 32,656
560,075
933,216
4,390,827
1 ,276,765
1 ,725,937
6,910,045
15,706
1 ,345,969
5,160,869
1 ,686,781
389,303
4,140,677
307,730,954
730,817,793
535,552
2 ,632,472
321 ,639
338,034
561 ,959
2,630,450
767,787
1,036,370
4,137,827
11 ,724
809,168
3,091 ,904
1 ,012,956
2 35,519
2,480,872
196,468,655
449,842,218
463,826
2,307,165
276,348
290,784
486,198
2 ,305,385
666,557
903,055
3 ,630,488
5,216
702,994
2,709,5al1
882,438
201 ,396
2,173,675
148,887,674
371,143,726
999,378
4 ,939,636
5 97,986
6 28,818
1,048,156
4,935,835
I ,434,343
1,939,425
7,768,316
16,940
1,512,162
5,801,415
1 ,895,395
436,914
4,654,547
345,356,329
820,985,944
o
January 2023
CaliForvxiaCitgFivzavxce.com Page 8 of 21
70 AVAILABLE FOR REVIEW IN THE CITY CLERK'S OFFICE Senate Bill No. 1
CHAPTER 5
An act to atnend Section 14526.5 of, to add Sections 14033, 14110, 14526.7, 14556.41, and 16321 to, to add Chapter 5 (commencing with Section 14460) to Part 5 of Division 3 of Title 2 of, to repeal Sections 63048.66, 63048.67, 63048.7, 63048.75, 63048.8, and 63048.85 of, and to repeal and add Section 63048.65 of, the Goveri'unent Code, to add Section 43021 to the Health and Safety Code, to amend Section 99312.1 of, and to add Sections 99312.3, 99312.4, and 99314.9 to, the Public Utilities Code, to amend Sections 6051.8, 6201.8, 7360, 8352.4, 8352.5, 8352.6, and 60050 of, to add Sections 7361.2, 7653.2, 60050.2, and 60201.4 to, and to add Chapter 6 (coinmencing with Section 11050) to Part 5 of Division 2 of, the Revenue andTaxation Code, to amend Sections 2104, 2105, 2106, and2107 of, to add Sections 2103.1 and 2192.4 to, to addArticle 2.5 (commencing with Section 800) to Chapter 4 of Division I of, and to add Chapter 2 (cornrnencingwith Section 2030) and Chapter 8.5 (commencing with Section 2390) to Division 3 of, the Streets andHighways Code, and to amend Section 4156 of, and to add Sections 4000.15 and 9250.6 to, the Vehicle Code, relating to transpottation, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.
[Approvcd by GovcmorApril 28, 2017. Filed with
Secrctary of Statc April 28, 2017.]
LEGISLATIVE COUNSEL'S DIGEST
SB 1, Beall. Transpoitation fi.inding.
(1) Existing law provides various sources of funding for transpoitation purposes, inctuding fimding for the state highway system and the local street and road system. These funding sources include, among others, fuel excise taxes, commercial vehicle weight fees, local transactions and use taxes, and federal funds. Existing law imposes certain registration fees on vehicles, with revenues from these fees deposited in the Motor Vehicle Account and used to fund the Department of Motor Vehicles and the Department of the California Highway Patrol. Existing law provides for the monthly transfer of excess balances in the Motor Vehicle Account to the State Highway Account.
This bill would create the Road Maintenance and Rehabilitation Program to address defet'red maintenance on the state highway system and the local street and road system. The bill would require the California Transportation Commission to adopt performance criteria, consistent with a specified asset management plan, to ensrire efficient use of certain funds available for the program. The bill worild provide for the deposit of various funds for the program in the Road Maintenance and Rehabilitation Account, which the 94 Attachment D
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73 Senate Bill No. 1
CHAPTER 5
An act to amend Section 14526.5 of, to add Sections 14033, 14110, 14526.7, 14556.41, and 16321 to, to add Chapter 5 (commencing with Section 14460) to Part 5 of Division 3 of Title 2 of, to repeal Sections 63048.66, 63048.67, 63048.7, 63048.75, 63048.8, and 63048.85 of, and to repeal and add Section 63048.65 of, the Government Code, to add Section 43021 to the Health and Safety Code, to amend Section 99312.1 of, and to add Sections 99312.3, 99312.4, and 99314.9 to, the Public Utilities Code, to amend Sections 6051.8, 6201.8, 7360, 8352.4, 8352.5, 8352.6, and 60050 of, to add Sections 7361.2, 7653.2, 60050.2, and 60201.4 to, and to add Chapter 6 (cornmencing with Section 11050) to Pait 5 of Division 2 of, the Revenue and Taxation Code, to amend Sections 2104, 2105, 2106, and 2107 of, to add Sections 2103.1 and 2192.4 to, to add Article 2.5 (commencing with Section 800) to Chapter 4 of Division l of, and to add Chapter 2 (com+nencing with Section 2030) and Chapter 8.5 (commencing with Section 2390) to Division 3 of, the Streets and Highways Code, and to amend Section 4156 of, and to add Sections 4000.15 and 9250.6 to, the Vehicle Code, relating to transportation, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.
[Approvcd by Govcmor April 28, 2017. Filcd witl'i
Sccretary of Statc April 28, 2017.]
LEGISLATIVE COUNSEL'S DIGEST
SB 1, Beall. Transportation funding.
(l) Existing law provides various sources of funding for transpoitation puiposes, including funding for the state highway system and the local street and road system. These funding sources include, among others, fuel excise taxes, commercial vehicle weight fees, local transactions and use taxes, and federal funds. Existing law imposes certain registration fees on vehicles, with revenues from these fees deposited in the Motor Vehicle Account and used to fund the Depaitment of Motor Vehicles and the Department of the California Highway Patrol. Existing law provides for the monthly transfer of excess balances in the Motor Vehicle Account to the State Highway Account.
This bill would create the Road Maintenance and Rehabilitation Program to address deferred maintenance on the state highway system and the local street and road system. The bill would require the California Transportation Commission to adopt perfonnance criteria, consistent with a specified asset management plan, to ensure efficient use of certain funds available for the program. The bill would provide for the deposit of various funds for the program in the Road Maintenance and Rehabilitation Account, which the 94 74
Ch. 5 -2-
bill would create in the State Transportation Fund, including revenues attributable to a $0.12 per gallon increase in the motor vehicle fuel (gasoline) tax imposed by the bill with an inflation adjustment, as provided, 50% of a $0.20 per gallon increase in the diesel excise tax, with an inflation adjustment, as provided, a portion of a new transportation improvement fee imposed under the Vehicle License Fee Law with a 'varying fee between $25 and $175 based on vehicle value and with an inflation adjustment, as provided, and a new $100 aru'iual vehicle registration fee applicable only to zero-emission vehicles model year 2020 and later, with an inflation adjustment, as provided. The bill would provide that the fuel excise tax increases take effect on November 1, 2017, the transportation improvement fee takes effect on January 1, 2018, and the zero-emission vehicle registration fee takes effect on July 1, 2020.
This bill would annually set aside $200,000,000 of the fiinds available for the program to fund road maintenance and rehabilitation purposes in counties that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees, as defined, which taxes or fees are dedicated solely to transportation improvements. These funds would be continuorisly appropriated for allocation pursuant to guidelines to be developed by the California Transportation Commission in consultation with local agencies. The bill would require $100,000,000 of the funds available for the program to be available aru'iually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program.
The bill would require $400,000,000 of the funds available for the program to be available annually for expenditure, upon appropriation by the Legislature, on state highway bridge and culvert maintenance and rehabilitation. The bill would require $5,000,000 of the funds available for the program that are not restricted by Article XIX of the California Constihition to be appropriated each fiscal year to the CaliforniaWorkforce Development Boardto assist local agencies to implement policies to promote preapprenticeship training programs to carry out specified projects funded by the account. The bill would require $25,000,000 of the funds available for the program to be annually transferred to the State Highway Account for expenditure on the freeway service patrol program. The bill wouldrequire $25,000,000 of the funds available for the program to be available annually for expenditure, upon appropriation by the Legislature, on local planning grants. The bill would authorize annual appropriations of $5,000,000 and $2,000,000 of the funds available for the program to the University of California and the Califoi'nia State University, respectively, for the puipose of conducting transportation research and transportation-related workforce education, training, and development, as specified. The bill would require the remaining funds available for the program to be allocated 50% for maintenance of the state highway system or to the state highway operation and protection program and 50% to cities and counties pursuant to a specified formula. The bill would impose various requirements on the department and agencies receiving these funds. The bill would authorize a city or county to spend its appoitionment of funds under the program on transportation 94 75
-3- Ch. 5
priorities other than those allowable pursuant to the program if the city's or county's average Pavement Condition Index meets or exceeds 80. (2) Existing law creates the Department of Transportation within the Transportation Agency.
This bill would create the Independent Office ofAudits and Investigations within the department, with specified powers and duties. The bill would provide for the Governor to appoint the director of the office for a 6-year tei'm, subject to confirmation by the Senate, and would provide that the director, who would be known as the Inspector General, may not be removed from office during the term except for good cause. The bill would specify the duties and responsibilities of the Inspector General with respect to the department and local agencies receiving state and federal transportation funds through the department, and would require an annual report to the Legislature and Governor.
This bill would require the department to update the Highway Design Mamial to incorporate the "complete streets" design concept by January 1, 2018. The bill would require the depaitment to develop a plan by January 1, 2020, to increase by up to 100% the dollar value of contracts awarded to small businesses, disadvantaged business enterprises, and disabled veteran business enterprises, as specified.
(3) Existing law provides for loans of revenues from varioris transportation funds and accounts to the General Fund, with various repayment dates specified.
This bill would identify the amount of outstanding loans from certain transportation funds as $706,000,000. The bill wouldrequire the Department of Finance to prepare a loan repayment schedule and would require the outstanding loans to be repaid pursuant to that schedule, as prescribed. The bill would appropriate funds for that purpose from the Budget Stabilization Account. The bill wouldrequire the repaid funds to be transferred, pursuant to a specified formula, to various state and local transportation purposes. (4) TheHighwaySafety,TrafficReduction,AirQuality,andPortSecurity BondAct of 2006 (Proposition IB) createdthe Trade Corridors Improvement Fund and provided for allocation by the Califomia Transportation Commission of $2 billion in bond funds for infrastructure improvements on highway and rail corridors that have a high volume of freight movement and for specified categories of projects eligible to receive these funds.
This bill would deposit the revenues attributable to 50% of the $0.20 per gallon increase in the diesel fuel excise tax imposed by the bill into the Trade Corridor Enhancement Account, to be expended on corridor-based freight projects nominated by local agencies and the state. (5) Article XIX of the California Constitution requires gasoline excise taxrevenues from motor vehicles traveling uponpublic streets and highways to be deposited in the Highway Users Tax Account, for allocation to city, county, and state transportation purposes. Existing law generally provides for statutory allocation of gasoline excise tax revenues attributable to other modes of transportation, including aviation, boats, agricultural vehicles, and off-highway vehicles, to particular accounts and funds for expendihire 94 76
Ch. 5 -4-
on purposes associated with those other modes, except that a specified portion of these gasoline excise tax revenues is deposited in the General Fund. Expenditure of the gasoline excise tax revenues attributable to those other modes is not restricted by Aiticle XIX of the California Constihition.
This bill, commencing November 1, 2017, would transfer the gasoline excise tax revenues attributable to boats and off-highway vehicles from the new $0.12 per gallon increase, and future inflation adjustments from that increase, to the State Parks and Recreation Fund, to be used for state parks, off-highway vehicle programs, or boating programs. The bill would allocate revenues from future inflation adjustments of the existing gasoline excise tax rate attributable to the nonhighway modes pursuant to existing law. (6) Existing law, as of July 1, 2011, increases the sales and rise tax on diesel and decreases the excise tax, as provided. Existing law requires the State Board of Equalization to annually modify both the gasoline and diesel excise tax rates on a going-forward basis so that the various changes in the taxes imposed on gasoline and diesel are revenue neutral.
This bill would eliminate, effective July 1, 2019, the annual rate adjustment to maintain revenue neutrality for the gasoline and diesel excise tax rates and would reimpose on that date the higher gasoline excise tax rate that was in effect on July 1, 2010, in addition to the increase in the rate described in (l) above that becomes effective on November 1, 2017.
Existing law, beyond the sales and use tax rate generally applicable, imposes an additional sales and use tax on diesel fuel at the rate of 1.75%, subject to certain exemptions, and provides for the net revemies collected from the additional tax to be transferred to the Public Transportation Account. Existing law continuously appropriates these and other revenues in the account to the Controller for allocation by formula to transportation agencies for public transit prirposes under the State Transit Assistance Program. Existing law provides for appropriation of other revenues in the account to the Department of Transportation for various other transportation purposes, including intercity rail puiposes.
This bill would increase the additional sales and use tax rate on diesel fuel by an additional 4%. The bill would continuously appropriate revenues attributable to the 3.5% rate increase to the Controller for allocation to transportation agencies for public transit purposes under the State Transit Assistance Program. The bill would require the revenues attributable to the remaining O.5% rate increase to be continuously appropriated to the Transportation Agency for intercity rail and commuter rail purposes.
The bill would also allocate portions of the revenue from the new transportation improvement fee to the State TransitAssistance Program and to the Transit and Intercity Rail Capital Program. The bill would restrict expenditures of the fee revenues made available to the State Transit Assistance Program to transit capital purposes and certain transit services, and would require a recipient transit agency to comply with various requirements, as specified.
(7) Existing law provides for the state to receive certain compact assets, as defined, from designated tribal compacts relative to Indian gaming, and 94 77
-5- Ch. 5
authorized the compact assets to be sold by the Infrastructure and Economic Development Bank to a special purpose trust in order to generate state revenues. Existing law designated certain of these revenues to be rised to repay certain loans of transportation funds that were made to the General Fund.
This bill would delete the references to the special purpose tnist andrevise payments to varioris transportation accounts to be made from compact assets.
The bill would repeal various other related provisions. (8) Existing law creates the Traffic Congestion Relief Program and identifies various specific projects eligible to receive funding.
This bill would deem the Traffic Congestion Relief Program to be complete and final as of June 30, 2017, and would provide that projects without approved applications are no longer eligible for funding. (9) Existing law requires the Department of Transportation to prepare a state highway operation and protection program every other year for the expenditure of transportation capital improvement funds for projects that are necessary to preserve and protect the state highway system, excluding projects that add new traffic lanes. The program is required to be based on an asset management plan, as specified. Existing law requires the depaitment to specify, for each project in the program the capital and support budget and projected delivery date for various components of the project. Existing law provides for the California Transpoitation Commission to review and adopt the program, and authorizes the commission to decline and adopt the program if it determines that the program is not sufficiently consistent with the asset management plan.
This bill would require the cotnmission, as part of its re'view of the program, to hold at least one hearing in northern California and one hearing in southern California regarding the proposed program. The bill would require the department to submit any change to a programmed project as an amendment to the commission for its approval.
This bill, on and after July 1, 2017, would also require the commission to make an allocation of capital outlay support resources by project phase for each project in the program, andwould require the department to submit a supplemental project allocation request to the commission for each project that experiences cost increases above the amounts in its allocation. The bill would require the commission to establish guidelines to provide exceptions to the requirement for a supplemental project allocation requirement that the commission deterinines are necessary to ensure that projects are not unnecessarily delayed.
(10) Existing law generally provides for transportation capital improvement projects to be nominated and programmed throrigh the state highway operation and protection program, relative to state highway rehabilitation and similar projects, or through the state transpoitation improvement program, relative to capacity enhancements and other capital projects.
This bill worild create the Solutions for Congested Corridors Program, with funding appropriated for the program from a poition of the new 94 78
Ch. 5 -6-
transportation improvement fee to be allocated by the California Transportation Commission to projects designed to achieve a balanced set of transportation, environmental, and community access improvements within highly congested travel conidors throughout the state and that are part of a comprehensive corridor plan. The bill would provide for regional transportation agencies and the Depaitment of Transportation to nominate projects, with preference to be given to projects that demonstrate collaboration between the regional agencies and the department. (11 ) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact repoit on a project that it proposes to carxy out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for aproject that may have a significant effect onthe environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
This bill would establish the Advance Mitigation Program in the Department of Transportation to enhance communications between the department and stakeholders to, among otherthings, protect natural resources and accelerate project delivery. The bill would require the department to set aside not less than $30,000,000 annually for 4 years for the program from capital outlay revenues.
(12) Existing law imposes various limitations on emissions of air contaminants for the control of air pollution fromvehicular andnonvehicular sources. Existing law generally designates the State Air Resources Board as the state agency with the primaiyresponsibility for the control ofvehicular air pollution.
This bill would prohibit, except as specified, the requiring of the retiretrient, replacement, retrofit, or repower of a self-propelled commercial motor vehicle during a specified period. The bill would require the state board to, by January 1, 2025, evaluate the impact of these provisions on state and local clean air efforts to meet state and local clean air goals, as provided.
(13) Existing law prohibits a person from driving, moving, or leaving standing upon a highway any motor vehicle, as defined, that has been registered in violation of provisions regulating vehicle emissions.
This bill, effective January 1, 2020, would require the Department of Motor Vehicles to confirm, prior to the initial registration or the transfer of ownership and registration of a diesel-fueled vehicle with a gross vehicle weight rating of more than 14,000 pounds, that the vehicle is compliant with, or exempt from, applicable air pollution control technology requirements, pursuant to specified provisions. The bill would require the department to refuse registration, or renewal or transfer of registration, for certain diesel-fueled vehicles, based on weight and model year, that are subject to specified provisions relating to the reduction of emissions of 94 79
-7- Ch. 5
diesel particulate matter, oxides of nitrogen, and other criteria pollutants from in-use diesel-fueled vehicles. The bill would authorize the department to allow registration, or renewal or transfer of registration, for any diesel-fueled vehicle that has been reported to the StateAirResources Board, and is using an approved exemption, or is compliant with applicable air pollution control technology requirements, pursuant to specifiedprovisions.
Existing law authorizes the department, in its discretion, to issue a temporaiy permit to operate a vehicle when a payment of fees has been accepted in an amount to be determined by the department and paid to the depa rtment by the owner or other person in lawful possession of the vehicle.
This bill would additionally authorize the department to issue a temporary permit to operate a vehicle for which registration is othei'wise required to be refused under the provisions of the bill, as prescribed. (14) The bill would enact other related provisions. (15) This bill would declare that it is to take effect immediately as an urgency statute.
Appropriation: yes.
The people of the State of California do enact as follows.' SECTION 1. The Legislature finds and declares all of the following:
(a) Over the next 10 years, the state faces a $59 billion shortfall to adequately maintain the existing state highway system in order to keep it in a basic state of good repair.
(b) Similarly, cities and counties face a $78 billion shortfall over the next decade to adequately maintain the existing network of local streets and roads.
(c) Statewide taxes and fees dedicated to the maintenance of the system have not been increased in more than 20 years, with those revenues losing more than 55 percent of their purchasing power, while costs to maintain the system have steadily increased and much of the underlying infrastnichire has aged past its expected useful life.
(d) Califomia motorists are spending $17 billion annually in extra maintenance and car repair bills, which is more than $700 per driver, due to the state's poorly maintained roads.
(e) Failing to act now to address this growing problem means that more drastic measures will be required to maintain our system in the future, essentially passing the burden on to future generations instead of doing our job today.
(f) A funding program will help address a portion of the maintenance backlog on the state's road system and will stop the growth of the problem. (g) Modestly increasing various fees can spread the cost of road repairs broadly to all users and beneficiaries of the road network without overburdening any one group.
(h) Improving the condition of the state's road system will have a positive impact on the economy as it lowers the transportation costs of doing business, 94 80
Ch. 5 -8-
reduces congestion impacts for employees, and protects property values in the state.
(i) The federal govemment estimates that increased spending on infrastructure creates more than 13,000 jobs per $1 billion spent. (j) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.
(k) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastnichire.
(7) A comprehensive, reasonable transportation funding package will do all of the following:
(1) Ensure these transportation needs are addressed. (2) Fairly distribute the economic impact of increased funding. (3) Restore the gas tax rate previously reduced by the State Board of Equalization pursuant to the gas tax swap.
(4) Direct increased revenue to the state's highest transportation needs. (m) This act presents a balance of new revenues and reasonable reforms to ensure efficiency, accountability, and performance from each dollar invested to improve California's transportation system. The revenues designated in this act are intended to address both state and local transportation infrastructure needs as follows:
(1) The revenues estimated to be available for allocation under the act to local agencies are estimated over the next 10 years to be as follows:
(A) Fiffeen billion dollars ($15,000,000,000) to local street and road maintenance.
(B) Sevenbillionfivehundredmilliondollars($7,500,000,000)fortransit operations and capital.
(C) Two billion dollars ($2,000,000,000) for the local partnership program.
(D) One billion dollars ($ 1,000,000,000) for the Active Transportation Program.
(E) Eight hundred twenty-five million dollars ($825,000,000) for the regional share of the State Transportation Improvement Program. (F) Two hundred fifty million dollars ($250,000,000) for local planning grants.
(2) The revenues estimated to be available for allocation rinder the act to the state are estimated over the next 10 years to be as follows:
(A) Fifteen billion dollars ($15,000,000,000) for state highway maintenance and rehabilitation.
(B) Four billion dollars ($4,000,000,000) for highway bridge and culvert maintenance and rehabilitation.
(C) Three billion dollars ($3,000,000,000) for high priority freight corridors.
(D) Two billion five hundred million dollars ($2,500,000,000) for congested conidor relief.
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(E) Eight hundred million dollars ($800,000,000) for parks programs, off-highway vehicle programs, boating programs, and agriculhiral programs. (F) Two hundred seventy-five million dollars ($275,000,000) for the interregional share of the State Transportation Improvement Program. (G) Twohundredfiftymilliondollars($250,000,000)forfreewayservice patrols.
(H) Seventy million dollars ($70,000,000) for transportation research at the University of California and the California State University. (n) ItistheintentoftheLegislaturethattheDepartmentofTransportation meet the following preliminary perfoimance outcomes for additional state highway investments by the end of 2027, in accordance with applicable state and federal standards:
(1) Not less than 98 percent of pavement on the state highway system in good or fair condition.
(2) Not less than 90 percent level of service achieved for maintenance of potholes, spalls, and cracks.
(3) Not less than 90 percent of culverts in good or fair condition. (4) Not less than 90 percent of the transportation management system units in good condition.
(5) Fix not less than an additional 500 bridges.
(o) Further, it is the intent of the Legislahire that the Department of Transportation leverage funding provided by this act for trade corridors and other highly congested travel corridors in order to obtain matching funds from federal and other sources to maximize improvements in the state's high-priority freight conidors and in the most congested commute corridors. (p) Constihitionally protecting the funds raised by this act ensures that these fimds are to be used only for transportation purposes necessary to repair roads and bridges, expand the economy, and protect natural resoiu'ces. (q) This act advances greenhouse gas reduction objectives and other environmental goals by focusing on "fix-it-first" projects, investments in transit and active transportation, and supporting Senate Bill 375 (Chapter 728, Statutes of 2008) and transportation plans.
SEC. 2. This act shall be known, and may be cited as, the Road Repair and Accountability Act of 2017.
SEC. 3. Section 14033 is added to the Govei'nment Code, to read:
14033. On or before January 1, 2018, the department shall update the Highway Design Manual to incorporate the "complete streets" design concept.
SEC. 4. Section 14110 is added to the Govei'nment Code, to read:
14110. Consistentwithfederalandstatelawsandregulations,including, but not limited to, the department's goal setting methodology as approved by the Federal Highway Administration, the department shall develop a plan by January 1, 2020, to increase by rip to 100 percent the dollar value of contracts and procurements awarded to small businesses, disadvantaged business enterprises, and disabled veteran business enterprises. The plan shall inctude the use of targeted media, including minority and women 94 82
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business enterprises, to outreach to these businesses and shall be provided to the Legislature pursuant to Section 9795.
SEC. 5. Chapter 5 (commencing with Section 14460) is added to Pait 5 of Division 3 of Title 2 of the Govemment Code, to read:
CHAPTER 5. DEPARTMBNT OF TRANSPORTATION INDEPENDENT OFFICE op Aum'rs AND INVESTIGATIONS
14460. (a) There is hereby created in the department the Independent Office of Audits and Investigations to ensure all of the following:
(1) The department, and extei'nal entities that receive state and federal transportation funds from the department, are spending those funds efficiently, effectively, economically, and in compliance with applicable state and federal requirements. Those external entities include, but are not limited to, private for profit and nonprofit organizations, local transportation agencies, and other local agencies that receive transportation funds either through a contract with the department or through an agreement or grant administered by the department.
(2) Thedeparhnent'sprogramsarefunctioningconsistentwithapplicable accounting standards and practices and are administered effectively, efficiently, and economically.
(3) The department's management is accomplishing departmental priorities, developing an annual audit plan, administering an effective enterprise risk management program, and is making efficient, effective, and financially responsible transportation decisions.
(4) The Secretary of Transportation, the Legislature, the California Transportation Commission, and the director and chief deputy director of the department are Mly infoi'med concerning fraud, improper activities, or other serious abuses or deficiencies relating to the expendihire of transpoitation funds or administration of department programs and operations.
(b) The Govemor shall appoint the director of the Audits and Investigations Office, who shall serve a six-year term, have the title of Inspector General, and be subject to Senate confirmation. The Inspector General may not be removed from office during that term, except for good cause. The reasons for removal of the Inspector General shall be stated in writing and shall include the basis for removal. The writing shall be sent to the Secretary of the Senate and the Chief Clerk of the Assembly at the time of the removal and shall be deemed to be a public document. (c) The Inspector General is vested with the full authority to exercise all responsibility for maintaining a full scope, independent, and objective audit and investigation program as prescribed by Sections 1237, 13885, 13886.5, 13887.5, and 13888, including, but not limited to, those activities described in Section 14461.
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(d) Notwithstanding Section 13887, in order to achieve independence and objectivity pursuant to this section, the Independent Office of Audits and Investigation shall meet all of the following reqriirements:
(1) The Inspector General shall report all audit and confidential investigation findings and recommendations made under his or her jurisdiction to the Secretary of Transportation and the director and chief deputy director of the department on an ongoing and current basis. (2) The Inspector General shall report at least annually, or upon request, to the Governor, the Legislature, and the California Transportation Commission with a summary of his or her investigation and audit findings and recommendations. The summary shall be posted on the office's Internet Web site and shall otherwise be made available to the public upon its release to the Governor, commission, and Legislahire. The summary shall include, but need not be limited to, significant problems discovered by the Inspector General and whether the Inspector General's recommendations relative to audits and investigations have been implemented by the affected units and programs of the department or affected extemal entities. The report shall be submitted to the Legislature in compliance with Section 9795. 14461. The Inspector General shall review policies, practices, and procedures and conduct aridits and investigations of activities involving state transportation funds administered by the department in consultation with all affected units and programs of the department and external entities.
SEC. 6. Section 14526.5 of the Govemment Code is amended to read:
14526.5. (a) Basedontheassetmanagementplanpreparedandapproved pursuant to Section 14526.4, the department shall prepare a state highway operation and protectionprogram for the expendihire oftransportation funds for major capital improvements that are necessary to preserve and protect the state highway system. Projects included in the program shall be limited to improvements relative to the maintenance, safety, operation, and rehabilitation of state highways and bridges that do not add a new traffic lane to the system.
(b) The program shall include projects that are expected to be advertised prior to July 1 of the year following submission of the program, but which have not yet been funded. The program shall include those projects for which construction is to begin within four fiscal years, starting July 1 of the year following the year the program is submitted.
(c) (1) The department, at a minimum, shall specify, for each project in the state highway operation and protection program, the capital and support budget, as applicable, for each of the following project phases:
(A) Project approval and enviroru'nental documents, support only. (B) Plans, specifications, and estimates, support only. (C) Rights-of-way.
(D) Construction.
(2) The department shall specify, for each project in the state highway operation and protection program, a projected delivei'y date for each of the following components:
(A) Project approval and environinental document completion. 94 84
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(B) Plans, specifications, and estimates completion. (C) Right-of-way certification.
(D) Start of constniction.
(d) The department shall submit its proposed program to the commission not later than January 31 of each even-numbered year. Prior to submitting its proposed program, the depanment shall make a draft of its proposed program available to transportation planning agencies for review and corninent and shall include the comments in its submittal to the commission.
The department shall provide the commission with detailed infornnation for all programmed projects on cost, scope, schedule, and performance metrics as determined by the commission.
(e) The commission shall review the proposed program relative to its overall adeqriacy, consistency with the asset management plan prepared and approved pursuant to Section 14526.4 and fimding priorities established in Section 167 of the Streets andHighways Code, the level of annual funding needed to implement the program, and the impact of those expendihires on the state transportation improvement program. The commission shall adopt the program and submit it to the Legislature and the Governor not later than April 1 of each even-numbered year. The commission may decline to adopt the program if the commission determines that the program is not sufficiently consistent with the asset management plan prepared and approved pursuant to Section 14526.4.
(f) As part of the commission's review of the program required pursuant to subdivision (a), the commission shall hold at least one hearing in northern California and one hearing in southern Califoi'nia regarding the proposed program.
(g) On or after July 1, 2017, to provide sufficient and transparent oversight of the depaitment's capital outlay suppoit resources composed of both state staff and contractors, the commission shall be required to allocate the department's capital outlay support resorirces by project phase, including preconstniction. Through this action, the commission will provide public transparency for the department's budget estimates, increasing assurance that the annual budget forecast is reasonable. The cominission shall develop guidelines, in consultation with the department, to implement this subdivision. Guidelines adopted by the commission to implement this subdivision shall be exempt from theAdministrative ProcedureAct (Chapter
3.5 (commencing with Section 11340) of Part 1).
(h) Beginning July 1, 2017, for a project that experiences increases in capital or support costs above the amounts in the commission's allocation pursuant to subdivision (g), the commission shall establish a threshold for requiring a supplemental project allocation. The coinrnission's guidelines adopted pursuant to subdivision (g) shall also establish the threshold that the commission determines is necessary to ensure efficiency and may provide exceptions as necessary so that projects are not unnecessarily delayed. (i) The department, for each project requiring a supplemental project allocation pursuant to subdivision (h), shall submit a request to the coininission for its approval.
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(j) Expenditures for these projects shall not be subject to Sections 188 and 188.8 of the Streets and Highways Code.
SEC. 7. Section 14526.7 is added to the Government Code, to read:
14526.7. (a) Thedepartmentshallincorporatetheperformancetargets in subdivision (n) of Section 1 of the act adding this section into the asset management plan adopted by the commission and targets adopted by the commission pursuant to Sections 14526.4 and 14526.5. The asset management plan shall also inctude targets adopted by the commission in consultation with the department for each asset class included in subdivision (n) of Section 1 of the act adding this section to measure the degree to which progress was made towards achieving the overall 2027 targets. Targets may be modified by the commission as needed to conform to federal regulation on performance measures and the completion of the department's asset management plan. Nothing in this section precludes the commission from adopting additional targets and performance measures pursuant to paragraph (1) of subdivision (c) of Section 14526.4.
(b) As specified by guidelines adopted by the commission, the deparkment shall report to the commission on its progress toward meeting the targets and performance measures established for state highways pursuant to subdivision (n) of Section 1 of the act adding this section and paragraph (1) of subdivision (c) of Section 14526.4.
SEC. 8. Section 14556.41 is added to the Government Code, to read:
14556.41. As of June 30, 2017, projects in Section 14556.40 for the Traffic Congestion Relief Program shall be deemed complete and final, and funding levels shall be based on actual amounts requested by the designated lead applicant pursuant to Section 14556.12. Projects without approved applications in accordance with Section 14556.12 shall no longer be eligible for program funding. Traffic Congestion Relief Program savings shall be transferred to other transportation accounts for the purposes specified in Section 16321.
SEC. 9. Section 16321 is added to the Government Code, to read:
16321. The amount of outstanding loans made pursuant to Section 14556.8 is seven hundred six million dollars ($706,000,000). This amount shall be repaid from the General Fund pursuant to subdivision (c) of Section 20 ofArticle XVI of the Califoi'nia Constitution no later than June 30, 2020, and upon repayment of this amount all loans authorized pursuant to Section 14556.8 and any associated interest shall be deemed repaid. The loans shall be repaid proportionately and in equal installments over three years. The Department of Finance shall prepare a loan repayment schedule, pursuant to which the outstanding loans shall be repaid by June 30, 2020, as follows:
(a) Two hundred fifty-six million dollars ($256,000,000) for transfer to the Public Transportation Account, to be allocated as follows:
(1) Up to twenty million dollars ($20,000,000) to local and regional agencies for climate change adaptation planning.
(2) The remainder to the Transit and Intercity Rail Capital Program as authorized in Pait 2 (commencing with Section 75220) of Division 44 of the Public Resources Code.
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(b) Two hundred twenty-five million dollars ($225,000,000) for transfer to the State Highway Account, for the State Highway Operation and Protection Program.
(c) Two hundred twenty-five million dollars ($225,000,000) is hereby continuously appropriated without regard to fiscal year to the Controller for apportionment to cities and counties for local streets and roads pursuant to the formula in paragraph (3) of subdivision (a) of Section 2103 of the Streets and Highways Code.
SEC. 10. Section 63048.65 of the Govemment Code is repealed.
SEC. 11. Section 63048.65 is added to the Govemment Code, to read:
63048.65. (a) Prior to July 1, 2015, tmee hundred twenty-one million dollars ($321,000,000) of the one billion two hundred million dollars ($1,200,000,000) of loans from the Traffic Congestion Relief Fund to the General Fund was repaid using tribal gaming compact revenues. In 2016, an additional one hundred seventy-three million dollars ($173,000,000) was repaid from the General Fund.
(b) The remaining seven hundred six million dollars ($706,000,000) of loans from the Traffic Congestion Relief Fund to the General Fund shall be repaid pursuant to Section 14556.8.
SEC. 12. Section 63048.66 of the Govemment Code is repealed.
SEC. 13. Section 63048.67 of the Government Code is repealed.
SEC. 14. Section 63048.7 of the Government Code is repealed.
SEC. 15. Section 63048.75 of the Govemment Code is repealed.
SEC. 16. Section 63048.8 of the Government Code is repealed.
SEC. 17. Section 63048.85 of the Govei'nment Code is repealed.
SEC. 18. Section43021 isaddedtotheHealthandSafetyCode,toread:
43021. (a) Except as provided in subdivision (b), the retirement, replacement, retrofit, or repower of a self-propelled commercial motor vehicle, as defined in Section 34601 of the Vehicle Code, shall not be required until the later of the following:
(1) Thirteen years from the model year the engine and emission control system are first ceitified for use in self-propelled commercial motor vehicles by the state board or other applicable state and federal agencies. (2) When the vehicle reaches the earlier of either 800,000 vehicle miles traveled or 18 years from the model year the engine and emission control system are first certified for use in self-propelled commercial motor vehicles by the state board or other applicable state and federal agencies. (b) This section does not apply to any of the following:
(1) Safetyprograms,including,butnotlimitedto,thoseadoptedpursuant to Section 34501 of the Vehicle Code.
(2) Vohmtary incentive and grant programs, including, but not limited to, those that give preferential access to a facility to a particular vehicle or class of vehicles.
(3) Programs designed to address inspection of, tampering with, and maintenance of, emission control systems.
(4) Programs designed to address imminent health risks where evidence, unavailable at the time equipment is certified for rise by the state board or 94 87
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other applicable state and federal agencies, is sufficient to show that immediate coi'rective action is necessary to prevent injury, illness, or death. (c) This section only applies to laws or regulations adopted or amended afterJanuary 1, 2017.
(d) It is the intent of the Legislature for this section to provide owners of self-propelled commercial motor vehicles, as defined in subdivision (a), certainty about the useful life of engines certified by the state board and other applicable agencies to meet required environmental standards for sale in the state. This section is not meant to otherwise restrict the authority of the state board or districts.
(e) (1) The state board shall, by January 1, 2025, evaluate the impact of the provisions of this section on state and local clean air efforts to meet state and local clean air goals. The evaluation shall include a review of the following:
(A) Compliance with the truck and bus rule (Section 2025 of Title 13 of the California Code of Regulations).
(B) The benefits and impacts of measures enacted to improve local air quality impacts from stationary sources.
(C) State implementation plan compliance.
(2) As part of the study, the state board shall make recommendations to the Legislature on additional or different mechanisms for achieving those goals while recognizing the financial investments made by the effected entities. In developing the sfudy, the state board shall take into account the report required in Section 38531 of the Health and Safety Code. (3) The state board shall hold at least one public workshop prior to the completion of the study.
SEC. 19. Section 99312.1 of the Public Utilities Code is amended to read:
99312.1. (a) Revenuestransfei'redtothePublicTranspoitationAccount pursuant to Sections 6051.8 and 6201.8 of the Revenue and Taxation Code for the State Transit Assistance Program are hereby continuously appropriated to the Controller for allocation as follows:
(1) Fiftypercentforallocationtotransponationplanningagencies,county transpoitation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314.
(2) Fifty percent for allocation to transportation agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board for purposes of Section 99313.
(b) For purposes of this chapter, the revenues allocated pursuant to this section shall be subject to the same requirements as revenues allocated pursuant to subdivisions (b) and (c), as applicable, of Section 99312. (c) The revemies transferred to the Public Transportation Account for the State Transit Assistance Program that are attributable to subdivision (a) of Section 11053 of the Revenue and Taxation Code are hereby continuously appropriated to the Controller, and, upon allocation pursuant to Sections 99313 and 99314, shall only be expended on the following:
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(1) Transit capital projects or services to maintain or repair a transit operator's existing transit vehicle fleet or existing transit facilities, including rehabilitation or modernization of existing vehicles or facilities. (2) The design, acquisition, and constniction of new vehicles or facilities that improve existing transit sei'vices.
(3) Transit services that complement local efforts for repair and improvement of local transportation infrastructiire. (d) (1) Prior to receiving an appottionment of funds pursuant to subdivision (c) from the Controller in a fiscal year, a recipient transit agency shall submit to the Department of Transportation a list of projects proposed to be funded with these funds. The list of projects proposed to be funded with these funds shall include a description and location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement. The project list shall not limit the flexibility of a recipient transit agency to fund projects in accordance with local needs and priorities so long as the projects are consistent with subdivision (c). (2) The department shall report to the Controller the recipient transit agencies that have submitted a list of projects as described in this subdivision and that are therefore eligible to receive an apportionment of funds for the applicable fiscal year. The Controller, upon receipt of the repoit, shall apportion funds pursuant to Sections 99313 and 99314. (e) For each fiscal year, each recipient transit agency receiving an apportionment of fimds pursuant to subdivision (c) shall, upon expending those funds, submit documentation to the department that includes a description and location of each completed project, the amount of fiinds expended on the project, the completion date, and the estimated useful life of the improvement.
(f) The audit of transit operator finances required pursuant to Section 99245 shall verify that the revenues identified in subdivision (c) have been expended in conformance with these specific requirements and all other generally applicable requirements.
SEC. 20. Section 99312.3 is added to the Public Utilities Code, to read:
99312.3. Revenues transferred to the Public Transportation Account pursuant to paragraph (2) of subdivision (c) of Section 6051.8 and paragraph (2) of subdivision (c) of Section 6201.8 of the Revenue and Taxation Code are hereby continuously appropriated to the Transportation Agency for distribution in the following manner:
(a) (1) Fifty percent of available annual revenues under this section shall be allocated by the TransportationAgency to the public agencies, including joint powers agencies, responsible for state-supported intercity rail services.
A minimum of 25 percent of the funds available under this subdivision shall be allocated to each of the state's three intercity rail corridors that provide regularly scheduled intercity rail service.
(2) The Transportation Agency shall adopt guidelines goveming the administration of the fimds available under this subdivision, including provisions providing authority for loans of these funds by mutual agreement between intercity rail service corridors.
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(b) (1) Fifty percent of available annual revenues under this section shall be allocated by the TransportationAgency to the public agencies, including joint powers agencies, responsible for commuter rail services. For the 2018-19 and 2019-20 fiscal years, 20 percent of the funds available under this subdivision shall be allocated to each of the state's five commuter rail service providers that provide regularly scheduled commuter rail service.
Commencing July 1, 2020, the fimds available under this subdivision shall be allocated based on guidelines and a distribution formula adopted by the Transportation Agency.
(2) On or before July 1, 2019, the Transportation Agency shall prepare a draft of the proposed guidelines and distribution formula and make them available for public comment. In preparing the proposed guidelines and distribution formula, the agency shall consult with the state's five commuter rail sei'vice providers. The final guidelines and distribution formula shall be adopted on or before January 1, 2020. The guidelines shall include, but need not be limited to, provisions providing authority for loans of these funds by mutual agreement between commuter rail service providers and providing for baseline allocations to each provider. (c) The funds made available by this section may be used for operations and capital improvements.
SEC.21. Section99312.4isaddedtothePublicUtilitiesCode,toread:
99312.4. Reveriues transferred to the Public Transportation Account pursuant to subdivision (a) of Section 11053 of the Revenue and Taxation Code for the Transit and hitercity Rail Capital Program (Part 2 (commencing with Section 75220) of Division 44 of the Public Resources Code) shall be available for appropriation to that program pursuant to the annual Budget Act.
SEC. 22. Section 99314.9 is added to the Public Utilities Code, to read:
99314.9. The Controller shall compute quaiterly proposed allocations for State TransitAssistance Program funds available for allocation pursuant to Sections 99313 and 99314. The Controller shall publish the allocations for each eligible recipient agency, including one list applicable to revenues allocated pursuant to subdivision (c) of Section 99312.1 and another list for revenues allocated from all other revenues in the Public Transportation Account that are designated for the State Transit Assistance Program.
SEC.23. Section6051.8oftheRevenueandTaxationCodeisamended to read:
6051.8. (a) Except as provided by Section 6357.3, in addition to the taxes imposed by this part, for the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers at the rate of
1.75 percent of the gross receipts of any retailer from the sale of all diesel fuel, as defined in Section 60022.
(b) Except as provided by Section 6357.3, in addition to the taxes imposed by this pait and by subdivision (a), commencing November 1, 2017, for the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers at the rate of 4 percent of the gross receipts of 94 90
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any retailer from the sale of all diesel fuel, as defined in Section 60022, sold at retail in this state.
(c) (1) Notwithstanding subdivision (b) of Section 7102, except as otherwise provided in paragraph (2), all of the revenues, less refunds, collected pursuant to this section shall be estimated by the State Board of Equalization, with the concurrence of the Department of Finance, and transferred quarterly to the Public Transportation Account in the State Transportation Fund for allocation under the State Transit Assistance Program pursuant to Section 99312. 1 of the Public Utilities Code. (2) The revenues, less refunds, attributable to a rate of O.5 percent of the 4-percent increase in the rate pursuant to subdivision (b), amounting to one-eighth of revenues from the increase in the rate under that subdivision, shall be estimated by the State Board of Equalization, with the concui'rence of the Department of Finance, and transferred quarterly to the Public Transportation Account in the State Transportation Fund for allocation by the Transportation Agency to intercity rail and commuter rail purposes prirsuant to Section 99312.3 of the Public Utilities Code.
SEC.24. Section6201.8oftheRevenueandTaxationCodeisamended to read:
6201.8. (a) Except as provided by Section 6357.3, in addition to the taxes imposed by this part, an excise tax is hereby imposed on the storage, use, or other consumption in this state of diesel fuel, as defined in Section 60022, at the rate of 1.75 percent of the sales price of the diesel fuel. (b) ExceptasprovidedbySection6357.3,inadditiontothetaxesimposed by this part and by subdivision (a), commencing November 1, 2017, an excise tax is hereby imposed on the storage, use, or other consumption in this state of diesel fuel, as defined in Section 60022, at the rate of 4 percent of the sales price of the diesel fuel.
(c) (1) Notwithstanding subdivision (b) of Section 7102, except as otherwise provided in paragraph (2), all of the revenues, less refunds, collected pursuant to this section shall be estimated by the State Board of Equalization, with the concurrence of the Department of Finance, and transferred quarterly to the Public Transportation Account in the State Transportation Fund for allocation pursuant to Section 99312. 1 of the Public Utilities Code.
(2) The revenues, less refunds, attributable to a rate of O.5 percent of the 4-percent increase in the rate pursuant to subdivision (b), amounting to one-eighth of revenues from the increase in the rate under that subdivision, shall be estimated by the State Board of Equalization, with the concurrence of the Department of Finance, and transfened quarterly to the Public Transportation Account in the State Transportation Fund for allocation by the Transportation Agency to intercity rail and commuter rail purposes pursuant to Section 99312.3 of the Public Utilities Code.
SEC. 25. Section 7360 of the Revenue and Taxation Code is amended to read:
7360. (a) (1) A tax of eighteen cents ($0.18) is hereby imposed upon each gallon of fuel subject to the tax in Sections 7362, 7363, and 7364. 94 91
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(2) If the federal fuel tax is reduced below the rate of nine cents ($0.09) per gallon and federal financial allocations to this state for highway and exclusive public mass transit guideway purposes are reduced or eliminated correspondingly, the tax rate imposed by paragraph (1), on and after the date of the reduction, shall be recalculated by an amount so that the combined state rate under paragraph (1) and the federal tax rate per gallon equal twenty-seven cents ($0.27).
(3) If any person or entity is exempt or paitially exempt from the federal fuel tax at the time of a reduction, the person or entity shall continue to be so exempt under this section.
(b) (1) On and after July 1, 2010, in addition to the tax imposed by subdivision (a), a tax is hereby imposed upon each gallon of motor vehicle fuel, other than aviation gasoline, subject to the tax in Sections 7362, 7363, and 7364 in an amount equal to seventeen and three-tenths cents ($0.173) per gallon.
(2) Forthe20ll-12fiscalyearandeachfiscalyearthereafter,theboard shall, on or before March 1 of the fiscal year iminediately preceding the applicable fiscal year, adjust the rate in paragraph (1) in that manner as to generate an amormt of revenue that will equal the amount of revenue loss attributable to the exemption provided by Section 6357.1 based on estimates made by the board, and that rate shall be effective during the state's next fiscal year.
(3) In order to maintain revenue neutrality for each year, beginning with the rate adjustment on or before March 1, 2012, the adjustment under paragraph (2) shall also take into account the extent to which the actual amount of revenues derived pursuant to this subdivision and, as applicable, Section 7361.1, the revenue loss attributable to the exemption provided by Section 6357.7 resulted in a net revemie gain or loss for the fiscal year ending prior to the rate adjustment date on or before March 1. (4) The intent of paragraphs (2) and (3) is to ensure that the act adding this subdivision and Section 6357.7 does not produce a net revenue gain in state taxes.
(5) Commencing July 1, 2019, the adjustments in paragraphs (2) and (3) shall cease, and the rate imposed by this subdivision shall be the rate in paragraph (l).
(c) On and after November 1, 2017, in addition to the taxes imposed by subdivisions (a) and (b), a tax is hereby imposed upon each gallon of motor vehicle fuel, other than aviation gasoline, subject to the tax in Sections 7362, 7363, and 7364, in an amount equal to twelve cents ($0.12) per gallon. (d) On July 1, 2020, and every July I thereaffer, the board shall adjust the taxes imposed by subdivisions (a), (b), and (c), with the adjustment to apply to both to the base tax rates specified in those provisions and to any previous adjustment in rates made pursuantto this subdivision, by increasing the taxes by a percentage amount equal to the increase in the California Consumer Price Index, as calculated by the Depaitment of Finance with the resulting taxes rounded to the nearest one-tenth of one cent ($0.01). The first adjustment pursuant to this subdivision shall be a percentage amount 94 92
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equal to the increase in the Califomia Consumer Price Index fromNovember 1, 2017, to November 1, 2019. Subsequent annual adjustments shall cover subsequent 12 month periods. The incremental change shall be added to the associated rate for that year.
(e) Any increases to the taxes imposed under subdivisions (a), (b), and (c) that are enactedby legislation subsequent to July 1, 2017, shall be deemed to be changes to the base tax rates for purposes of the California Consumer Price Index calculation and adjustment performed pursuant to subdivision (d).
SEC. 26. Section 7361.2 is added to the Revenue and Taxation Code, to read:
7361.2. (a) For the privilege of storing, for the purpose of sale, each supplier, wholesaler, and retailer owning 1,000 or more gallons of tax-paid motor vehicle fuel on November 1, 2017, shall pay a storage tax, the rate of which shall be deteimined by the board pursuant to the difference in the rate of the tax on motor vehicle fuel in effect on October 31, 2017, and the rate in effect onNovember 1, 2017, on tax-paidmotor vehicle fuel in storage according to the volumetric measure thereof.
(b) For purposes of this section:
(1) "Owning" means having title to the motor vehicle fuel. (2) "Retailer" means any person who sells motor vehicle fuel in this state to a person who subsequently uses the motor vehicle fiiel. (3) "Storing" includes the ownership or possession of tax-paid motor vehicle fuel outside of the bulk transfer/terminal system, including the holding of tax-paid motor vehicle fuel for sale at wholesale or retail locations stored in a container of any kind, including railroad tank cars and trucks or trailer cargo tanks. "Storing" also includes tax-paid motor vehicle fuel purchased from and invoiced by the seller, and tax-paid motor vehicle fuel removed from a tei'minal or entered into by a supplier, prior to the date specified in subdivision (a) and in transit on that date. (4) "Wholesaler" means any person who sells diesel fuel in this state for resale to a retailer or to a person who is not a retailer and subsequently uses the motor yehicle fuel.
SEC. 27. Section 7653.2 is added to the Revenue and Taxation Code, to read:
7653.2. OnorbeforeJanuaryl,2018,eachpersonsubjecttothestorage tax imposed under Section 7361.2 shall prepare and file with the board, in a form prescribed by the board, a rehim showing the total number of gallons of tax-paid motor vehicle fuel owned by the person on November 1, 2017, the amount of the storage tax, and any other infoi'mation that the board deems necessary for the proper administration of this part. The return shall be accompanied by a remittance payable to the board in the amount of tax due.
SEC.28. Section8352.4oftheRevenueandTaxationCodeisamended to read:
8352.4. (a) SubjecttoSections8352and8352.l,andexceptasothei'wise provided in subdivision (b), there shall be transferred from the money 94 93
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deposited to the credit of the Motor Vehicle Fuel Account to the Harbors andWatercraft Revolving Fund, for expenditure in accordance with Division 1 (commencing with Section 30) of the Harbors and Navigation Code, the sum of six million six hundred thousand dollars ($6,600,000) per annum, representing the amorint of money in the Motor Vehicle Fuel Account attributable to taxes imposed on distributions of motor vehicle fuel used or usable in propelling vessels. The actual amount shall be calculated using the annual reports of registered boats prepared by the Department of Motor Vehicles for the United States Coast Guard and the foi'mula and method of the December 1972 report prepared for this purpose and submitted to the Legislature on December 26, 1972, by the Director of Transportation. If the amount transfened during each fiscal year is in excess of the calculated amount, the excess shall be retransferred from the Harbors and Watercraft Revolving Fund to the Motor Vehicle Fuel Account. If the amount transferred is less than the amount calculated, the difference shall be transfei'red from the Motor Vehicle Fuel Accorint to the Harbors and Watercraft Revolving Fund. No adjustment shall be made if the computed difference is less than fifty thousand dollars ($50,000), and the amount shall be adjusted to reflect any temporary or permanent increase or decrease that may be made in the rate under the Motor Vehicle Fuel Tax Law. Payments pursuant to this section shall be made prior to payments pursuant to Section 8352.2.
(b) (1) Commencing July 1, 2012, the revenues attributable to the taxes imposed pursuant to subdivision (b) of Section 7360 and otherwise to be deposited in the Harbors and Watercraft Revolving Fund pursuant to subdivision (a) shall instead be transferred to the General Fund. (2) Commencing November 1, 2017, the revenues attributable to the taxes imposed pursuant to subdivision (c) of Section 7360, any adjustment pursuant to subdivision (d) of Section 7360, and Section 7361.2, and otherwise to be deposited in the Harbors and Watercraft Revolving Fund pursuant to subdivision (a), shall instead be transferred to the State Parks and Recreation Fund to be used for state parks, off-highway vehicle programs, or boating programs.
SEC. 29. Section 8352.5 of the Revenue and Taxation Code is amended to read:
8352.5. (a) (1) Subject to Sections 8352 and 8352.1, and except as otherwise provided in paragraph (1) of subdivision (bl there shall be transferred from the money deposited to the credit of the Motor Vehicle Fuel Account to the Department of Food and Agriculture Fund, during the second quarter of each fiscal year, an amount equal to the estimate contained in the most recent report prepared pursuant to this section. (2) The amounts are not subject to Section 6357 with respect to the collection of sales and use taxes thereon, and represent the portion of receipts in the Motor Vehicle Fuel Account during a calendar year that were attributable to agricultural off-highway use of motor vehicle fuel which is subject to refund pursuant to Section 8101, less gross refunds allowed by the Controller during the fiscal year ending June 30 following the calendar 94 94
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yearto persons entitled to refunds for agricultural off-highway use pursuant to Section 8101. Payments prirsuant to this section shall be made prior to payments pursuant to Section 8352.2.
(b) (1) Commencing July 1, 2012, the revenues attributable to the taxes imposed pursuant to subdivision (b) of Section 7360 and otherwise to be deposited in the Department of Food and Agriculture Fund pursuant to subdivision (a) shall instead be transferred to the General Fund. (2) Comrnencing November 1, 2017, the revenues attributable to the taxes imposed pursuant to subdivision (c) of Section 7360, as adjusted pursuant to subdivision (d) of Section 7360, and Section 7361.2 shall be deposited in the Department of Food and Agriculture Fund. (c) On or before September 30, 2012, and on or before September 30 of each even-numbered year thereafter, the Director of Transportation and the Director of Food and Agriculhire shall jointly prepare, or cause to be prepared, a repoit setting forth the current estimate of the amount of money in the Motor Vehicle Fuel Account attributable to agricultural off-highway use of motor vehicle fuel, which is subject to refund pursuant to Section 8101 less gross refunds allowed by the Controller to persons entitled to refunds for agricultural off-highway use pursuant to Section 8101; and they shall submit a copy of the report to the Legislature.
SEC. 30. Section 8352.6 of the Revenue and Taxation Code is amended to read:
8352.6. (a) (1) Subject to Section 8352.1, and except as otherwise proyided in paragraphs (2) and (3), on the first day of every month, there shall be transferred from moneys deposited to the credit of the MotorVehicle Fuel Account to the Off-Highway Vehicle Trust Fund created by Section 38225 of the Vehicle Code an amount attributable to taxes imposed upon distributions of motor vehicle fiiel used in the operation of motor vehicles off highway and for which a refund has not been claimed. Transfers made pursuant to this section shall be made prior to transfers pursuant to Section 8352.2.
(2) (A) Commencing July 1, 2012, the revenues attributable to the taxes imposed pursuant to subdi'vision (b) of Section 7360 and otherwise to be deposited in the Off-Highway Vehicle Trust Fund pursuant to paragraph (I) shall instead be transferred to the General Fund. (B) Commencing November 1, 2017, the revenues attributable to the taxes imposed pursuant to subdivision (c) of Section 7360, any adjustment pursuant to subdivision (d) of Section 7360, and Section 7361.2, and othei'wise to be deposited in the Off-Highway Vehicle Trust Fund pursuant to subdivision (a), shall instead be transferred to the State Parks and Recreation Fund to be used for state parks, off-highway vehicle programs, or boating programs.
(3) The Controller shall withhold eight hundred thiity-three thousand dollars ($833,000) from the monthly transfer to the Off-Highway Vehicle Tnist Fundpursuant to paragraph (1), and transfer that amount to the General Fund.
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(b) The amount transferred to the Off-Highway Vehicle Trust Fund pursuant to paragraph (1) of subdivision (a), as a percentage of the Motor Vehicle Fuel Account, shall be equal to the percentage transferred in the 2006-07 fiscal year. Every five years, starting in the 2013-14 fiscal year, the percentage transferred may be adjusted by the Department of Transportation in cooperation with the Depanment of Parks and Recreation and the Department of Motor Vehicles. Adjustments shall be based on, but not limited to, the changes in the following factors since the 2006-07 fiscal year or the last adjustment, whichever is more recent:
(1) The number of vehicles registered as off-highway motor vehicles as required by Division 16.5 (cornmencing with Section 38000) of the Vehicle Code.
(2) The number of registered street-legal vehicles that are anticipated to be rised off highway, including four-wheel drive vehicles, all-wheel drive vehicles, and dual-sport motorcycles.
(3) Attendance at the state vehicular recreation areas. (4) Off-highway recreation use on federal lands as indicated by the United States Forest Service's National Visitor Use Monitoring and the United States Bureau of Land Management's Recreation Management Information System.
(c) ItistheintentoftheLegislaturethattransfersfromtheMotorVehicle Fuel Account to the Off-Highway Vehicle Trust Fund should reflect the full range of motorized vehicle use offhighway for both motorizedrecreation and motorized off-road access to other recreation opportunities. Therefore, the Legislature finds that the fuel tax baseline established in subdivision (b), attributable to off-highway estimates of use as of the 2006-07 fiscal year, accounts for the three categories of vehicles that have been found over the years to be users of fuel for off-highway motorized recreation or motorized access to nonmotorized recreational pursuits. These three categories are registered off-highway motorized vehicles, registered street-legal motorized vehicles used off highway, and unregistered off-highway motorized vehicles.
(d) It is the intent of the Legislature that the off-highway motor vehicle recreational use to be determined by the Department of Transportation pursuant to paragraph (2) of subdivision (b) be that usage by vehicles subject to registration under Division 3 (commencing with Section 4000) of the Vehicle Code, for recreation or the pursuit of recreation on surfaces where the use ofvehicles registeredunder Division 16.5 (coinmencing with Section 38000) of the Vehicle Code may occur.
(e) In the 2014-15 fiscal year, the Department of Transportation, in consultation with the Department of Parks and Recreation and the Department of Motor Vehicles, shall undertake a shidy to determine the appropriate adjustment to the amount transferred pursuant to subdivision (b) and to update the estimate of the amount attributable to taxes imposed upon distributions of motor vehicle fuel used in the operation of motor vehicles off highway and for which a refund has not been claimed. The 94 96
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depaitment shall provide a copy of this study to the Legislature no later than January 1, 2016.
SEC. 31. Chapter 6 (commencing with Section 11050) is added to Part 5 of Division 2 of the Revenue and Taxation Code, to read:
CHAPTBR 6. TRANSPORTATION IMPROVEMENT FEE
11050. For purposes of this chapter, the following terms have the following meanings:
(a) "Transportation purposes" means both of the following:
(1) The research, planning, construction, improvement, maintenance, and operation of public streets and highways (and their related public facilities for nonmotorized traffic), including the mitigation of their environmental effects, the payment for property taken or damaged for the foregoing purposes, and the administrative costs necessarily incurred in the foregoing pui'poses.
(2) The research, planning, consti'uction, improvement, maintenance, and operation of public transportation systems (and their related equipment and fixed facilities), including the mitigation of their environmental effects, the payment for property taken or damaged for the foregoing purposes, and the administrative costs necessarily incurred in the foregoing purposes. (b) "Transportation improvement fee" means a supplemental charge added to the fee imposed pursuant to Chapter 2 (commencing with Section 10751).
(c) "Vehicle" means every vehicle that is subject to the fee in Chapter 2 (commencing with Section 10751), except the following:
(1) A commercial vehicle with an unladen weight of more than 10,000 pounds.
(2) A vehicle exempted pursuant to the Vehicle Code from the payment of registration fees.
(3) A vehicle for which a certificate of nonoperation has been filed with the Department of Motor Vehicles pursuant to Section 4604 of the Vehicle Code, during the period of time covered by the certificate. (4) A vehicle described in Section 5004 of the Vehicle Code. 11051. (a) In addition to any other fee imposed on a vehicle by this code or the Vehicle Code, a transportation improvement fee is hereby imposed on each vehicle as defined in subdivision (b) of Section 11050 effective on January 1, 2018, or as soon after that date as the department is able to commence collection of the fee. The transportation improvement fee shall be in the amounts specified in Section 11052. (b) The department shall collect the fee at the same time and in the same manner as the department collects the vehicle registration fee pursuant to Section 9250 of the Vehicle Code.
(c) The fee imposed pursuant to this chapter is imposed for the privilege of a resident of California to operate upon the public highways a vehicle or 94 97
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trailer coach, the registrant of which is subject to the fee under Chapter 2 (commencing with Section 10751).
(d) The revenues from the transportation improvement fee imposed by this chapter shall be available for expenditure only on transportation purposes as provided in Section 11053.
11052. (a) The annual amount of the transportation improvement fee shall be based on the market value of the vehicle, as determined by the department pursuant to Sections 10753, 10753.2, and 10753.5, using the following schedule:
(l) Vehicles with a vehicle market value range between zero dollars ($0) and four thousand nine hundred ninety-nine dollars ($4,999), a fee of twenty-five dollars ($25).
(2) Vehicles with a vehicle market value range between five thousand dollars ($5,000) and twenty-four thousand nine hundred ninety-nine dollars ($24,999), a fee of fifty dollars ($50).
(3) Vehicles with a vehicle market value range between twenty-five thousand dollars ($25,000) andthirty-fourthousandnine hundred ninety-nine dollars ($34,999), a fee of one hundred dollars ($100). (4) Vehicles with a vehicle market value range between thiity-five thousand dollars ($35,000) and fifty-nine thousand nine hundred ninety-nine dollars ($59,999), a fee of one hundred fifky dollars ($150). (5) Vehicles with a vehicle market value range of sixty thousand dollars ($60,000) and higher, a fee of one hundred seventy-five dollars ($175). (b) On January 1, 2020, and every Januaiy 1 thereafter, the department shall adjust the transportation improvement fee imposed under subdivision (a) by increasing the fee for each yehicle market range in an amount equal to the increase in the California Consumer Price Index for the prior year, except the first adjustment shall cover the prior two years, as calculated by the Department of Finance, with amounts equal to or greater than fifty cents ($0.50) rounded to the highest whole dollar. The incremental change shall be added to the associated fee rate for that year.
(c) Any changes to the transportation improvement fee imposed in subdiyision (a) that are enacted by the Legislature subsequent to January 1, 2018, shall be deemed to be changes to the base fee for purposes of the California Consumer Price Index calculation and adjustment performed pursuant to subdivision (b).
11053. Revenues from the transportation improvement fee, after deduction of the department's administrative costs related to this chapter, shall be transferred by the deparhnent to the Controller for deposit as follows:
(a) Cornmencingwiththe20l7-18fiscalyear,threehundredfiftymillion dollars ($350,000,000), plus an annual increase for inflation as detei'mined in subdivision (b) of Section 11052 for this proportional share, shall annually be deposited into the Public Transportation Account. The Controller shall, each month, set aside one-twelfth of this amount, to accumulate a total of tmee hundred fifty million dollars ($350,000,000) in each fiscal year or the appropriate adjusted amount. For each fiscal year commencing with the 2017-18 fiscal year, the annual Budget Act shall include an appropriation 94 98
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for 70 percent of these revenues to be allocated to the Transit and Intercity Rail Capital Program (Part 2 (commencing with Section 75220) of Division 44 of the Public Resources Code), pursuant to Section 99312.4 of the Public Utilities Code. The remaining 30 percent of these revenues shall be continuously appropriated to the Controller for allocation under the State Transit Assistance program, pursuant to subdivision (c) of Section 99312.1 of the Public Utilities Code.
(b) Commencingwiththe20l7-18fiscalyear,twohundredfiftymillion dollars ($250,000,000) shall annually be deposited into the State Highway Account for appropriation by the annual Budget Act to the Congested Corridor Program created pursuant to Section 2391 of the Streets and Highways Code. The Controller shall, each month, set aside one-twelfth of this amount, to accumulate a total of two hundred fifky million dollars ($250,000,000) in each fiscal year.
(c) The remaining revenues after the transfers made in subdivisions (a) and (b) shall be deposited into the Road Maintenance and Rehabilitation Account created pursuant to Section 2031 of the Streets and Highway Code.
SEC. 32. Section 60050 of the Revenue and Taxation Code is amended to read:
60050. (a) (1) A tax of sixteen cents ($0.16) is hereby imposed upon each gallon of diesel fuel subject to the tax in Sections 60051, 60052, and 60058.
(2) If the federal fuel tax is reduced below the rate of fifteen cents ($0.15) per gallon and federal financial allocations to this state for highway and exclusive priblic mass transit guideway purposes are reduced or eliminated correspondingly, the tax rate imposed by paragraph (1) shall be increased by an amount so that the combined state rate under paragraph (1) and the federal tax rate per gallon equal what it would have been in the absence of the federal reduction.
(3) If any person or entity is exempt or partially exempt from the federal fuel tax at the time of a reduction, the person or entity shall continue to be exempt under this section.
(b) On and after November 1, 2017, in addition to the tax imposed prirsuant to subdivision (a), an additional tax of twenty cents ($0.20) is hereby imposed upon each gallon of diesel fuel subject to the tax in Sections 60051, 60052, and 60058.
(c) On July 1, 2020, and every July 1 thereafter, the State Board of Eqrialization shall adjust the taxes imposed by subdivisions (a), and (b), with the adjustment to apply to both to the base tax rates specified in those provisions and to any previous adjustment in rates made pursuant to this subdivision, by increasing the taxes by a percentage amount equal to the increase in the California Consumer Price Index, as calculated by the Department of Finance with the resulting taxes rounded to the nearest one-tenth of one cent ($0.01). The first adjustment pursuant to this subdivision shall be a percentage amount equal to the increase in the Califomia Consumer Price Index from November 1, 2017, to November 1, 2019. Subsequent annual adjustments shall cover subsequent 12 month 94 99
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periods. The incremental change shall be added to the associated rate for that year.
(d) Any changes to the taxes imposed under this section that are enacted by legislation subsequent to July 1, 2017, shall be deemed to be changes to the base tax rates for purposes of the Califoi'nia Consumer Price Index calculation and adjustment performed pursuant to paragraph (1).
SEC. 33. Section 60050.2 is added to the Revenue and Taxation Code, to read:
60050.2. (a) For the privilege of storing, for the purpose of sale, each supplier, wholesaler, and retailer owning 1,000 or more gallons of tax-paid diesel fuel on November 1, 2017, shall pay a storage tax of twenty cents ($0.20) per gallon of tax-paid diesel fiiel in storage according to the volumetric measure thereof.
(b) For purposes of this section:
(1) "Owning" means having title to the diesel fuel. (2) "Retailer" means any person who sells diesel fuel in this state to a person who subsequently uses the diesel fuel.
(3) "Storing" includes the ownership or possession of tax-paid diesel fuel outside of the bulk transfer/tei'minal system, including the holding of tax-paid diesel fuel for sale at wholesale or retail locations stored in a container of any kind, including railroad tank cars and tnicks or trailer cargo tanks. "Storing" also includes tax-paid diesel fuel prirchased from and invoiced by the seller, and tax-paid diesel fuel removed from a tenninal or entered into by a supplier, prior to the date specified in subdivision (a) and in transit on that date.
(4) "Wholesaler" means any person who sells diesel fuel in this state for resale to a retailer or to a person who is not a retailer and subsequently uses the diesel fuel.
SEC. 34. Section 60201.4 is added to the Revenue and Taxation Code, to read:
60201.4. OnorbeforeJanuaiyl,2018,eachpersonsubjecttothestorage tax imposed under Section 60050.2 shall prepare and file with the board, in a form prescribed by the board, a return showing the total number of gallons of tax-paid diesel fuel owned by the person on November 1, 2017, the amount of the storage tax, and any other information that the board deems necessary for the proper administration of this part. The return shall be accompanied by a remittance payable to the board in the amount of tax due.
SEC.35. Article2.5(comrnencingwithSection800)isaddedtoChapter 4 of Division 1 of the Streets and Highways Code, to read:
Aiticle 2.5. Advance Mitigation Program
800. (a) The Advance Mitigation Program is hereby created to enhance communications between the department and stakeholders to protect natural resources through project mitigation, to meet or exceed applicable 94 100
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environmental requirements, to accelerate project delivery, and to fully mitigate environmental impacts from transportation infrastnicture projects.
The department shall consult on all activities pursuant to this article with the Department of Fish and Wildlife, including activities pursuant to Chapter 9 (cornmencing with Section 1850) of Division 2 of the Fish and Game Code.
(b) Commencing with the 2017-18 fiscal year, and for a period of four years, the depaitment shall set aside no less than thirty million dollars ($30,000,000) annually for theAdvance Mitigation Program from the annual appropriations for the State Transportation Improvement Program and the State Highway Operation and Protection Program for the plaru'iing and implementation of projects in the Advanced Mitigation Program. (c) The anmial Budget Act and subsequent legislation may establish additional provisions and requirements for the program.
SEC.36. Chapter2(commencingwithSection2030)isaddedtoDivision 3 of the Streets and Highways Code, to read:
CHAPTER 2. ROAD MAINTENANCE AND REHABILITATION PROGRAM 2030. (a) TheRoadMaintenanceandRehabilitationProgramishereby created to address defei'red maintenance on the state highway system and the local street and road system. Funds made available by the program shall be prioritized for expendihire on basic road maintenance and road rehabilitation projects, and on critical safety projects. (b) (1) Funds made available by the program shall be used for projects that inctude, but are not limited to, the following:
(A) Road maintenance and rehabilitation.
(B) Safety projects.
(C) Railroad grade separations.
(D) Completestreetcomponents,includingactivetransportationpurposes, pedestrian and bicycle safety projects, transit facilities, and drainage and stormwater capture projects in conjunction with any other allowable project. (E) Traffic control devices.
(2) Funds made available by the program may also be used to satisfy a match requirement in order to obtain state or federal funds for projects authorized by this subdivision.
(c) To the extent possible and cost effective, and where feasible, the department and cities and counties receiving funds under the program shall rise advanced technologies and material recycling techniques that reduce the cost of maintaining and rehabilitating the streets and highways, and that exhibit reduced levels of greenhouse gas emissions through material choice and construction method.
(d) To the extent possible and cost effective, and where feasible, the deparhnent and cities and counties receiving funds under the program shall use advanced technologies and communications systems in transportation infrastructure that recognize and accommodate advanced automotive 94 101
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technologies that may include, but are not necessarily limited to, charging or fueling opportunities for zero-emission vehicles, and provision of infrastructure-to-vehicle communications for transitional or fiill autonomous vehicle systems.
(e) To the extent deemed cost effective, and where feasible, in the context of both the project scope andthe risk level for the asset due to global climate change, the depaitment and cities and counties receiving funds under the program shall include feahires in the projects funded by the program to better adapt the asset to withstand the negative effects of climate change and make the asset more resilient to impacts such as fires, floods, and sea level rise.
(f) To the extent beneficial, cost effective, and practicable in the context of facility type, right-of-way, project scope, and quality of nearby alternative facilities, and where feasible, the department and cities and counties receiving fimds under the program shall incorporate complete street elements into projects funded by the program, including, but not limited to, elements that improve the quality of bicycle and pedestrian facilities and that improve safety for all users of transportation facilities. (g) For purposes of funds directed to the State Highway Operation and Protection Program, the guidelines and reporting provisions shall be consistent with Section 14526.5 of the Government Code. (h) Guidelines adopted by the commission to facilitate the allocation of funds in the account shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
2031. ThefollowingrevenuesshallbedepositedintheRoadMaintenance and Rehabilitation Account, which is hereby created in the State Transportation Fund:
(a) Notwithstanding subdivision (b) of Section 2103 and pursuant to subdivision (a) of Section 2103.1, the portion of the revenues in the Highway Users Tax Account attributable to the increases in the motor vehicle fuel excise tax pursuant to subdivision (c) of Section 7360 of the Revenue and Taxation Code, as adjusted pursuant to subdivision (d) of that section. (b) The revenues from the portion of the transportation improvement fee pursuant to subdivision (c) of Section 11053 of the Revenue and Taxation Code.
(c) The revenues from the increase in the vehicle registration fee pursuant to Section 9250.6 of the Vehicle Code, as adjusted pursuant to subdivision (b) of that section.
(d) Notwithstanding subdivision (b) of Section 2103 and pursuant to paragraph (2) of subdivision (b) of Section 2103. 1, one-half of the revenues attributable to the increase in the diesel fuel excise tax pursuant to subdivisions (b) and (c) of Section 60050 of the Revenue and Taxation Code.
(e) Any other revenues designated for the program. 94 102
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2031.5. For each fiscal year, the annual Budget Act shall contain an appropriation from the Road Maintenance and Rehabilitation Account for the costs of administering this chapter.
2032. (a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) ofthe remaining revenues deposited in the RoadMaintenance andRehabilitationAccount shall be set aside annually for counties thathave sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year.
(2) Eligible projects under this subdivision shall include, but not are limited to, sound walls for a freeway that was built prior to 1987 without sound walls and with or without high occupancy vehicle lanes if the completion of the sound walls has been defened due to lack of available funding for at least 20 years and a noise barrier scope suminaiy report has been completed within the last 20 years.
(3) Notwithstanding Section 13340 of the Govemment Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocationto each eligible county and each city in the county for road maintenance and rehabilitation purposes pursuant to Section 2033. (b) Affer deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 2017-18 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transpoitation Program created pursuant to Chapter 8 (commencing with Section 2380) of Division 3 to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. (c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 2017-18 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. (d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a), (b), and (c), beginning in the 2017-18 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The 94 103
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Controller shall each month set aside one-twelfth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year.
(e) After deducting the amounts appropriated in the aru'iual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a), (b), (c), and (d), inthe 2017-18, 2018-19, 2019-20, 2020-21, and 2021-22 fiscal years, from revenues in the Road Maintenance and Rehabilitation Accormt that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carg out the projects that are funded by the account pursuant to Section 2038.
Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same pui'poses in the following year's Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027. (f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a), (b), (c), (d), and (e), beginning in the 2017-18 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. (g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a), (b), (c), (d), (e), and (f), beginning in the 2017-18 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the prirpose of conducting transpoitation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for the purpose of conducting transportation research and transportation-related workforce education, training, and development. Prior to the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transpoitation and the Senate Committee on Transportation and Horising may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.
(h) NotwithstandingSectionl3340oftheGoveminentCode,thebalance of the revemies deposited in the Road Maintenance and Rehabilitation Accormt are hereby continuously appropriated as follows:
(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the state highway operation and protection program.
(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of 94 104
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paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.
2032.5. (a) It is the intent of the Legislahire that the Department of Transportation and local governments are held accountable for the efficient investment of public funds to maintain the public highways, streets, and roads, and are accountable to the people through performance goals that are tracked and reported.
(b) The depaitment shall annually report to the commission relative to the expenditures made with funds received pursuant to subdivision (c) of, and paragraph (1) of subdivision (g) of, Section 2032, and the progress made and achievement of the performance goals outlined in subdivision (n) of Section I of the act adding this section.
(c) For each fiscal year in which the department receives an allocation of funds described in subdivision (b), the department shall submit documentation to the commission that includes a description and the location of each completed project, the amount of funds expended on the project, the completion date, and the project's estimated useful life. Annually, the commission shall evaluate the effectiveness of the department in reducing deferred maintenance and improving road conditions on the state highway system, as demonstrated by the progress made by the goals set forth in subdivision (n) of Section l of the act enacting this section. The commission may make recommendations for improvement and may withhold future project allocations if it determines program funds are not being appropriately spent. The commission shall annually include any findings in its annual report to the Legislature pursuant to Section 14535 of the Government Code. (d) The department shall implement efficiency measures with the goal to generate at least one hundred million dollars ($100,000,000) per year in savings to invest in maintenance and rehabilitation of the state highway system. These savings shall be reported to the commission. 2033. (a) OnorbeforeJanuaryl,2018,thecommission,incooperation with the department, transportationplanning agencies, county transpoitation commissions, and other local agencies, shall develop guidelines for the allocation of funds pursuant to subdivision (a) of Section 2032. (b) The guidelines shall be the complete and fiill statement of the policy, standards, and criteria that the commission intends to use to determine how these funds will be allocated.
(c) The commission may amend the adopted guidelines after conducting at least one public hearing.
2033.5. The department, from funds made available pursuant to subdivision (f) of Section 2032, shall allocate local planning grants to encourage local and regional planning that furthers state goals, including, but not limited to, the goals and best practices cited in the regional transportation guidelines adopted by the commission pursuant to Sections 14522 to 14522.3, inclusive, of the Government Code. The depaitment shall develop a grant guide and shall consult with the State Air Resources Board, the Govemor's Office of Planning and Research, and the Department of Housing and Community Development in the development of the grant 94 105
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guide, and shall provide status reports as it administers these funds. The grant guide shall be exempt from the Administrative ProcedureAct (Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
2034. (a) (1) Prior to receiving an apportionment of funds under the program pursuant to paragraph (2) of subdivision (h) of Section 2032 from the Controller in a fiscal year, an eligible city or county shall submit to the commission a list ofprojects proposed to be fundedwith these funds pursuant to an adopted city or county budget. All projects proposed to receive funding shall be included in a city or county budget that is adopted by the applicable city council or county board of supei'visors at a regular public meeting. The list of projects proposed to be funded with these funds shall include a description and the location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement. The project list shall not limit the flexibility of an eligible city or county to fund projects in accordance with local needs and priorities so long as the projects are consistent with subdivision (b) of Section 2030. (2) The commission shall report to the Controller the cities and counties that have submitted a list of projects as described in this subdivision and that are therefore eligible to receive an apportionment of funds under the program for the applicable fiscal year. The Controller, upon receipt of the report, shall apportion funds to eligible cities and counties. (b) For each fiscal year, each city or county receiving an apportionment of funds shall, upon expending program funds, submit documentation to the commission that includes a description and location of each completed project, the amount of funds expended on the project, the completion date, and the estimated useful life of the improvement.
2036. (a) Cities and counties shall maintain their existing commitment of local funds for street, road, and highway purposes in order to remain eligible for an allocation or apportionment of funds prirsuant to Section 2032.
(b) In order to receive an allocation or apportionment pursuant to Section 2032, the city or county shall annually expend from its general fund for street, road, and highway purposes an amount not less than the annual average of its expenditures from its general fund during the 2009-10, 2010-11, and 2011-12 fiscal years, as reported to the Controller pursuant to Section 2151. For purposes of this subdivision, in calculating a city's or county's annual general fund expendihires and its average general fund expenditures for the 2009-10, 2010-11, and 2011-12 fiscal years, any unrestricted funds that the city or county may expend at its discretion, including vehicle in-lieu tax revenues and revenues from fines and forfeitures, expended for street, road, and highway purposes shall be considered expendihires from the general fund. One-time allocations that have been expended for street and highway purposes, but which may not be available on an ongoing basis, including revenue provided under the Teeter Plan Bond Law of 1994 (Chapter 6.6 (commencing with Section 54773) of Part I of Division 2 of Title 5 of the Govemment Code), may not 94 106
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be considered when calculating a city's or county's annual general fund expenditures.
(c) For any city incorporated after July 1, 2009, the Controller shall calculate an annual average expenditure for the period between July 1, 2009, and December 31, 2015, inclusive, that the city was incorporated. (d) For purposes of subdivision (b), the Controller may request fiscal data from cities and counties in addition to data providedpursuant to Section 2151, for the 2009-10, 2010-11, and 2011-12 fiscal years. Each city and county shall furnish the data to the Controller not later than 120 days after receiving the request. The Controller may withhold payment to cities and cormties that do not comply with the request for infornnation or that provide incomplete data.
(e) The Controller may perform audits to ensure compliance with subdivision (b) when deemed necessary. Any city or county that has not complied with subdivision (b) shall reimburse the state for the funds it received during that fiscal year. Any funds withheld or returned as a result of a failure to comply with subdivision (b) shall be reapportioned to the other counties and cities whose expenditures are in compliance. (f) If a city or county fails to comply with the requirements of subdivision (b) in a particular fiscal year, the city or county may expend during that fiscal year and the following fiscal year a total amount that is not less than the total amount required to be expended for those fiscal years for prirposes of complying with subdivision (b).
2037. A city or cormty may spend its apportionment of funds under the program on transportation priorities other than those allowable pursuant to this chapter if the city's or county's average Pavement Condition Index meets or exceeds 80.
2038. The California Workforce Development Board shall develop guidelines for public agencies receiving Road Maintenance and Rehabilitation Account funds to participate in, invest in, or partner with, new or existing preapprenticeship training programs established pursuant to subdivision (e) of Section 14230 of the Unemployment Insurance Code.
The department and local agencies that receive Road Maintenance and Rehabilitation Account funds pursuant to this chapter shall, not later than July 1, 2023, follow the guidelines set foith by the board. The board shall also establish a preapprenticeship development and training grant program, beginning Januaiy 1, 2019, pursuant to subdivision (e) of Section 14230 of the Unemployment Insurance Code. Local public agencies that receive Road Maintenance and RehabilitationAccount funds pursuant to this chapter are eligible to cotnpete for such grants and may apply in paitnership with other agencies and entities, including those with existing preapprenticeship programs. Successful grant applicants shall, to the extent feasible:
(a) Follow the multicraft core curriculum implemented by the State Depa rtment of Education for its pilot project with the Califomia Partnership Academies and by the Califoi'nia Workforce Development Board and local boards.
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(b) Include a plan for outreach to and retention of women participants in the preapprenticeship program to help increase the representation of women in the building and construction trades.
(c) Include a plan for outreach to and retention of minority participants and underrepresented subgroups in the preapprenticeship program to help increase their representation in the building and constniction trades. (d) Include a plan for outreach to and retention of disadvantaged youth participants in the preapprenticeship program to help increase their employment opportunities in the building and construction trades. (e) Include a plan for outreach to individuals in the local labor market area and to foi'merly incarcerated individuals to provide pathways to employment and training.
(f) Coordinate with local state-approved apprenticeship programs, local building trade councils, and to the extent possible the California Conservation Corps and certified community conservation corps, so individuals who have completed these programs have a pathway to continued employment.
SEC.37. Section2103.1isaddedtotheStreetsandHighwaysCode,to read:
2103.1. (a) Notwithstandingsubdivision(b)ofSection2103,theportion of revenues in the Highway Users Tax Account attributable to the increases in the motor vehicle fuel excise tax pursuant to subdivision (c) of Section 7360 of the Revenue and Taxation Code, as adjustedpursuant to subdivision (d) of that section, shall be transferred to the Road Maintenance and Rehabilitation Account pursuant to Section 2031.
(b) Notwithstanding subdivision (b) of Section 2103, the portion of revenues in the Highway Users Tax Account attributable to the increase in the diesel fuel excise tax pursuant to subdivision (b) of Section 60050 of the Revenue and Taxation Code, as adjusted pursuant to subdivision (c) of that section, shall be transferred as follows:
(1) Fifty percent to the Trade Corridors Enhancement Account pursuant to Section 2192.4.
(2) Fifty percent to the Road Maintenance and Rehabilitation Account pursuant to Section 2031.
(c) Notwithstanding subdivision (b) of Section 2103, the portion of the revenues in the Highway Users TaxAccount attributable to the storage taxes imposed pursuant to Sections 7361.2 and 60050.2 of the Revenue and Taxation Code shall be deposited in the Road Maintenance and Rehabilitation Account created pursuant to Section 2031.
SEC. 38. Section 2104 of the Streets and Highways Code is amended to read:
2104. NotwithstandingSectionl3340oftheGovernmentCode,asum equal to the net revenue derived from 11.3 percent of the per gallon tax under the Motor Vehicle Fuel License Tax Law (Part 2 (commencing with Section 7301) of Division 2), 1.80 cents ($0.0180) under the Use Fuel Tax Law (Part 3 (commencing with Section 8601) of Division 2), and 11.5 percent of the per gallon tax under the Diesel Fuel Tax Law (Part 31 94 108
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(commencing with Section 60001) of Division 2) of the Revenue and Taxation Code, shall be apportioned among the counties, as follows:
(a) Each county shall be paid one thousand six hundred sixty-seven dollars ($1,667) during each calendar month, which amount shall be expended exclusively for engineering costs and administrative expenses with respect to county roads.
(b) A sum equal to the total of all reimbursable snow removal or snow grooming, or both, costs filed pursuant to subdivision (d) of Section 2152, or seven million dollars ($7,000,000), whichever is less, shall be apportioned in 12 approximately equal monthly apportionments for snow removal or snow grooming, or both, on county roads, as provided in Section 2110. (c) A sum equal to five hundred thousand dollars ($500,000) shall be apportioned in 12 approximately equal monthly apportionments, as provided in Section 2110.5.
(d) (1) Seventy-fivepercentofthefundspayableunderthissectionshall be apportioned among the cormties monthly in the respective propoitions that the number of fee-paid and exempt vehicles which are registered in each county bears to the total number of fee-paid and exempt vehicles registered in the state.
(2) Forpurposesofapportionmentunderthissubdivision,theDepartment of Motor Vehicles shall, as soon as possible after the last day of each calendar month, fumish to the Controller a verified statement showing the number of fee-paid and exempt vehicles which are registered in each county and in the state as of the last day of each calendar month as reflected by the records of the Department of Motor Vehicles.
(e) Of the remaining money payable, there shall be paid to each eligible county an amount that is comprited monthly as follows: The number of miles of maintained county roads in each county shall be multiplied by sixty dollars ($60); from the resultant amount, there shall be deducted the amount received by each county under subdivision (d) and the remainder, if any, shall be paid to each county.
(f) The remaining money payable, afker the foregoing apportionments, shall be apportioned amongthe counties inthe same proportion as the money referred to in subdivision (d).
(g) (1) Transfers of revenues from the Highway Users Tax Account to counties pursuant to this section collected during the months of March, April, May, June, and July of 2008, shall be made with the transfer ofAugust 2008 revenues in September of 2008. This suspension shall not apply to a county with a population of less than 40,000.
(2) For the purpose of meeting the cash obligations associated with ongoing budgeted costs, a county may make use of any cash balance in its county road fund, including that resulting from the receipt of funds pursuant to the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Chapter 12.49 (cornmencing with Section 8879.20) of Division l of Title 2 of the Govei'nment Code (hereafter bond act)) for local streets and roads maintenance, during the period of this suspension, without the use of this cash being reflected as an expenditure of bond act funds, 94 109
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provided the cash is replaced once this suspension is repaid in September of 2008. Counties may accrue the revenue received in September 2008 as repayment of these suspensions for the months of April, May, and June of 2008 back to the 2007-08 fiscal year. Nothing in this paragraph shall change the fact that expenditures must be accrued andreflected from the appropriate fimding sources for which the moneys were received and meet all the requirements of those funding sources.
(h) (1) The transfer of revenues from the Highway Users Tax Account to counties pursuant to this section that are collected during the months of Januai'y, Febniary, and March 2009, shall be made with the transfer ofApril 2009 revenues in May 2009.
(2) For the purpose of meeting the cash obligations associated with ongoing budgeted costs, a county may make use of any cash balance in its county road fund, including that resulting from the receipt of funds pursuant to the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Chapter 12.49 (commencing with Section 8879.20) of Division 1 of Title 2 of the Government Code (bond act)) for local streets and roads maintenance during the period of this suspension, provided the cash is replaced once this suspension is repaid in May of 2009. (3) This subdivision shall not affect any requirement that an expenditure is required to be acciued and reflected from the appropriate funding source for which the money was received and to meet all the requirements of its funding source.
SEC. 39. Section 2105 of the Streets and Highways Code is amended to read:
2105. Notwithstanding Section 13340 of the Government Code, in addition to the apportionments prescribed by Sections 2104, 2106, and 2107, from the revenues derived from a per gallon tax imposed pursuant to Section 7360 of the Revenue and Taxation Code, and a per gallon tax imposed pursuant to Sections 8651, 8651.5, and 8651.6 of the Revenue and Taxation Code, and a per gallon tax imposed pursuant to Sections 60050 and 60115 of the Revenue and Taxation Code, the following apportionments shall be made:
(a) A sum equal to 5.8 percent of the per gallon tax under Section 7360 of the Revenue and Taxation Code, 11.5 percent of any per gallon tax in excess of nine cents ($0.09) per gallon under Sections 8651, 8651.5, and 8651.6 of the Revenue and Taxation Code, and 6.5 percent of the per gallon tax under Sections 60050 and 60115 of the Revenue and Taxation Code, shall be apportioned among the counties, including a city and county.
The amount of apportionment to each county, including a city and county, during a fiscal year shall be calculated as follows:
(I) One million dollars ($1,000,000) for apportionment to all counties, including a city and cormty, in proportion to each county's receipts during the prior fiscal year under Sections 2104 and 2106. (2) One million dollars ($1,000,000) for apportionment to all counties, including a city and cormty, as follows:
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(A) Seventy-five percent in the proportion that the number of fee-paid and exempt vehicles which are registered in the county bears to the number of fee-paid and exempt vehicles registered in the state. (B) Twenty-five percent in the propoition that the number of miles of maintained county roads in the county bears to the miles of maintained county roads in the state.
(3) For each county, determine its factor which is the higher amount calculated pursuant to paragraph (1) or (2) divided by the sum of the higher amounts for all of the counties.
(4) The amount to be apportioned to each county is equal to its factor multiplied by the amount available for apportionment. (b) A sum equal to 5.8 percent of the per gallon tax under Section 7360 of the Revenue and Taxation Code, 11.5 percent of any per gallon tax in excess of nine cents ($0.09) per gallon under Sections 8651, 8651.5, and 8651.6 of the Revenue and Taxation Code, and 6.5 percent of the per gallon tax under Sections 60050 and 60115 of the Revenue and Taxation Code, shall be apportioned to cities, including a city and county, in the proportion that the total population of the city bears to the total population of all the cities in the state.
(c) (1) Transfers of revenues from the Highway Users Tax Account to counties or cities pursuant to this section collected during the months of March, April, May, June, and July of 2008, shall be made with the transfer of August 2008 revenues in September of 2008. This suspension shall not apply to a cormty with a population of less than 40,000. (2) For the purpose of meeting the cash obligations associated with ongoing budgeted costs, a city or county may make use of any cash balance in the city account that is designated for the receipt of state funds allocated for local streets and roads or the county road fund, including that resulting from the receipt of funds prirsuant to the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Chapter 12.49 (commencing with Section 8879.20) of Division 1 of Title 2 of the Government Code (hereafter bond act)) for local streets and roads maintenance, during the period of this suspension, without the use of this cash being reflected as an expendihire of bond act funds, provided the cash is replaced once this suspension is repaid in September of 2008. Counties and cities may accrue the revenue received in September2008 as repayment of these suspensions for the months of April, May, and June of 2008 back to the 2007-08 fiscal year. Nothing in this paragraph shall change the fact that expendihires must be accnied andrefiected from the appropriate funding sources for which the moneys were received and meet all the requirements of those funding sources.
(d) (l) The transfer of revenues from the Highway Users Tax Account to corinties or cities pursuant to this section collected during the months of January, Febniai'y, and March 2009 shall be made with the transfer ofApril 2009 revenues in May 2009.
(2) For the pui'pose of meeting the cash obligations associated with ongoing budgeted costs, a city or county may make use of any cash balance 94 111
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in the city account that is designated for the receipt of state funds allocated for local streets and roads or the county road fund, including that resulting from the receipt of funds pursuant to the Highway Safety, Traffic Reduction, Air Quality, and Poit Security Bond Act of 2006 (Chapter 12.49 (commencing with Section 8879.20) of Division I of Title 2 of the Government Code (bond act)) for local streets androads maintenance, during the period of this suspension, and the use of this cash shall not be considered as an expenditure of bond act funds, if the cash is replaced when the payments that are suspended pursuant to this subdivision are repaid in May 2009.
(3) This subdivision shall not affect any requirement that an expenditure is required to be acci'ued and reflected from the appropriate funding source for which the money was received and to meet all the requirements of its funding sorirce.
SEC. 40. Section 2106 of the Streets and Highways Code is amended to read:
2106. Notwithstanding Section 13340 of the Govemment Code, a sum equal to the net revenue derived from 5.3 percent of the per gallon tax under the MotorVehicle Fuel License Tax Law (Part 2 (coinmencing with Section 7301 )of Division 2 of the Revenue and Taxation Code) shall be apportioned monthly from the Highway Users Tax Account in the Transportation Tax Fund among the counties and cities as follows:
(a) Four hundred dollars ($400) per month shall be apportioned to each city and city and county and eight hundred dollars ($800) per month shall be apportioned to each county and city and county.
(b) On the last day of each month, the sum of six hundred thousand dollars ($600,000) shall be transferred to the State Highway Account in the State Transportation Fund for the Active Transportation Program pursuant to Chapter 8 (commencing with Section 2380). For each month in the 2013-14 fiscal year that has passed prior to the enactment of the bill adding this sentence, six hundred thousand dollars ($600,000) shall be immediately transferred from the Bicycle Transportation Account to the State Highway Account in the State Transportation Fund for the Active Transportation Program, less any amount already expended for that program from the Bicycle TransportationAccount during the 2013-14 fiscal year. (c) The balance shall be apportioned, as follows:
(l) A base sum shall be computed for each county by using the same proportions of fee-paid and exempt vehicles as are established for purposes of apportionment of funds under subdivision (d) of Section 2104. (2) For each county, the percentage of the total assessed vatuation of tangible property subject to local tax levies within the county which is represented by the assessed valuation of tangible property outside the incorporated cities of the county shall be applied to its base sum, and the resulting amount shall be apportioned to the county. The assessed valuation of taxable tangible propeity, for pui'poses of this computation, shall be that most recently used for countywide tax levies as reported to the Controller by the State Board of Equalization. If an incorporation or annexation is 94 112
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legally completed following the base sum computation, the new city's assessed valuation shall be deducted from the county's assessed valuation, the estimate of which may be provided by the State Board of Equalization. (3) The difference between the base sum for each county and the amount appoitioned to the county shall be apportioned to the cities of that county in the proportion that the population of each city bears to the total population of all the cities in the county. Populations used for determining apportionment of money rinder Section 2107 are to be used for purposes of this section.
(d) (1) Transfers of revenues from the Highway Users Tax Account to counties or cities pursuant to this section collected during the months of March, April, May, June, and July of 2008, shall be made with the transfer of August 2008 revenues in September of 2008. This suspension shall not apply to a county with a population of less than 40,000. (2) For the purpose of meeting the cash obligations associated with ongoing budgeted costs, a city or county may make use of any cash balance in the city account that is designated for the receipt of state funds allocated for local streets and roads or the county road fund, including that resulting from the receipt of fimds prirsuant to the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Chapter 12.49 (commencing with Section 8879.20) of Division l of Title 2 of the Government Code (hereafter bond act)) for local streets and roads maintenance, during the period of this suspension, without the use of this cash being reflected as an expenditure of bond act funds, provided the cash is replaced once this suspension is repaid in September of 2008. Counties and cities may accnie the revenue received in September 2008 as repayment of these suspensions for the months of April, May, and June of 2008 back to the 2007-08 fiscal year. Nothing in this paragraph shall change the fact that expenditures must be acci'ued and reflected from the appropriate funding sources for which the moneys were received and meet all the requirements of those funding sources.
(e) (1) The trar+sfer of revenues from the Highway Users Tax Account to counties or cities pursuant to this section collected during the months of Januaiy, February, and March 2009, shall be made with the transfer ofApril 2009 revemies in May 2009.
(2) For the purpose of meeting the cash obligations associated with ongoing budgeted costs, a city or county may make use of any cash balance in the city account that is designated for the receipt of state funds allocated for local streets and roads or the county road fund, including that resulting from the receipt of funds pursuant to the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Chapter 12.49 (commencing with Section 8879.20) of Division 1 of Title 2 of the Government Code (bond act)) for local streets and roads maintenance, during the period of this suspension, and the use of this cash shall not be considered as an expenditure of bond act funds, if the cash is replaced when the payments that are suspended pursuant to this subdivision are repaid in May 2009.
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(3) This subdivision shall not affect any requirement that an expenditure is required to be accrued and reflected from the appropriate funding source for which the money was received and to meet all the requirements of its funding source.
SEC. 41. Section 2107 of the Streets and Highways Code is amended to read:
2107. (a) Notwithstanding Section 13340 of the Govemment Code, a sum equal to the net revenues derived from 7.3 percent of the per gallon tax under the Motor Vehicle Fuel License Tax Law (Part 2 (commencing with Section 7301) of Division 2), 2.59 cents ($0.0259) under the Use Fuel Tax Law (Part 3 (cornrnencing with Section 8601) of Division 2), and 11.5 percent rmder the Diesel Fuel Tax Law (Part 31 (commencing with Section 60001) of Division 2) of the Revenue and Taxation Code, shall be apportioned monthly to the cities and cities and counties of this state from the HighwayUsers TaxAccount in the Transportation Tax Fund as provided in this section.
(b) From the sum deterinined pursuant to subdivision (a), the Controller shall allocate annually to each city that has filed a report containing the information prescribed by subdivision (c) of Section 2152, and that had expenditures in excess of five thousand dollars ($5,000) during the preceding fiscal year for snow removal, an amount equal to one-half of the amount of its expenditures for snow removal in excess of five thousand dollars ($5,000) during that fiscal year.
(c) The balance of the sum determined pursuant to subdivision (a) from the Highway Users Tax Account shall be allocated to each city, including city and county, in the proportion that the total population of the city bears to the total population of all the cities in this state. (d) (1) For the purpose of this section, except as otherwise provided in paragraph (2), the population in each city is the population determined for that city in the manner specified in Section 11005.3 of the Revenue and Taxation Code.
(2) Commencing with the ninth fiscal year of a city described in subdivision (a) of Section 11005.3 of the Revenue and Taxation Code, the sixth fiscal year of a city described in subdivision (b) of Section 11005.3 of the Revenue and Taxation Code, and the 61st month of the city described in subdivision (c) of Section 11005.3 of the Revenue and Taxation Code, the population in each city is the actual population of that city, as defined in subdivision (e) of Section 11005.3 of the Revenue and Taxation Code. (e) (1) Transfers of revenues from the Highway Users Tax Account to cities pursuant to this section collected during the months of March, April, May, June, and July of 2008, shall be made with the transfer ofAugust 2008 revenues in September of 2008.
(2) For the purpose of meeting the cash obligations associated with ongoing budgeted costs, a city may make use of any cash balance in the city account that is designated for the receipt of state funds allocated for local streets and roads, including that resulting from the receipt of funds pursuant to the Highway Safety, Traffic Reduction, Air Quality, and Port 94 114
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Security Bond Act of 2006 (Chapter 12.49 (commencing with Section 8879.20) of Division l of Title 2 of the Goveniment Code (hereafter bond act)) for local streets and roads maintenance, during the period of this suspension, without the use of this cash being reflected as an expendihu'e of bond act funds, provided the cash is replaced once this suspension is repaid in September of 2008. Cities may accrue the revenue received in September 2008 as repayment of these suspensions for the months ofApril, May, and June of 2008 back to the 2007-08 fiscal year. Nothing in this paragraph shall change the fact that expenditures must be accrued and reflected from the appropriate funding sources for which the moneys were received and meet all the requirements of those funding sources. (f) (1) A transfer of revenues from the Highway Users Tax Account to cities pursuant to this section collected during the months of January, Febiuai'y, and March 2009, shall be made with the transfer of April 2009 revenues in May 2009.
(2) For the purpose of meeting the cash obligations associated with ongoing budgeted costs, a city may make use of any cash balance in the city account that is designated for the receipt of state funds allocated for local streets and roads, including that resulting from the receipt of funds pursuant to the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Chapter 12.49 (commencing with Section 8879.20) of Division I of Title 2 of the Government Code (bond act)) for local streets and roads maintenance, during the period of this suspension, and the use of this cash shall not be reflected as an expenditure of bond act funds, if the cash is replaced once this suspension is repaid in May 2009. (3) This subdivision shall not affect any requirement that an expendihire is required to be accrued and reflected from the appropriate funding sources for which the moneys were received and to meet all the requirements of those fimding sources.
SEC.42. Section2192.4isaddedtotheStreetsandHighwaysCode,to read:
2192.4. TheTradeCorridorEnhancementAccountisherebycreatedin the State Transportation Fund to receive funds from subdivision (b) of Section 60050 of the Revenue and Taxation Code, as adjusted. Funds in the account shall be available for expenditure upon appropriation by the Legislature for corridor-based freight projects nominated by local agencies and the state.
SEC. 43. The Legislahire finds and declares all of the following:
(a) Californians know congestion. For decades, California has been home to five or six of the nation's most congested travel corridors, which are located in Los Angeles, the San Francisco-Oakland-San Jose Bay Area, the Inland Empire, San Diego, and increasingly, in the central valley. While congestion is a vexing challenge in a state that is home to nearly 40 million people and that adds nearly a half-million people each year, regions and localities are finding new ways to address congestion in highly traveled corridors by undertaking long-term, comprehensive, and multimodal approaches that seek to reduce congestion by expanding travel choices, 94 115
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improving the quality of life, and preserving the local community character within the conidor.
(b) Examples of this more comprehensive approach to improving congestion in highly traveled corridors include, but are not limited to, programs in the following regions:
(1) The North Coast Conidor improvements along Route 5 and the parallel rail coi'ridor in the County of San Diego. (2) TheRoute91andMetrolinkrailcorridorimprovementsintheCounty of Riverside.
(3) Emerging solutioris for the Route 101 and Caltrain conidor connecting Silicon Valley with San Francisco.
(4) Multimodal approaches for the Route 101 and SMART rail corridor between the Counties of Marin and Sonoma.
(5) Comprehensive solutions for the Route 405 Corridor in the County of Los Angeles.
(c) The state recognizes the benefits to mobility, quality of life, and the environment through comprehensive, multimodal proposals that address mobility, community, and environmental challenges along highly traveled corridors. Therefore, the Solutions for Congested Corridors Program is being created to support collaborative and comprehensive proposals to address these challenges.
SEC. 44. Chapter 8.5 (cort'unencing with Section 2390) is added to Division 3 of the Streets and Highways Code, to read:
CHAPTER s..5. CONGESTED CORRIDORS
2390. TheSolutionsforCongestedCorridorsProgramisherebycreated. 2391. Pursuant to subdivision (b) of Section 11053 of the Revenue and Taxation Code, two hundred fifty million dollars ($250,000,000) in the State Highway Account shall be available for appropriation to the Department of Transportation in each annual Budget Act for the Solutions for Congested Corridors Program. Funds made available for the program shall be allocated by the Califomia Transportation Commission to projects designed to achieve a balanced set of transportation, environmental, and community access improvements within highly congested travel corridors throughout the state.
Funding shall be available for projects that make specific perfoimance improvements and are part of a comprehensive corridor plan designed to reduce congestion in highly traveled corridors by providing more transportation choices for residents, commuters, and visitors to the area of the corridor while presei'ving the character of the local community and creating opportunities for neighborhood enhancement projects. In order to mitigate increases in vehicle miles traveled, greenhouse gases, and air pollution, highway lane capacity-increasing projects funded by this program shall be limited to high-occupancy vehicle lanes, managed lanes as defined in Section 14106 of the Government Code, and other non-general purpose lane improvements primarily designed to improve safety for all modes of 94 116
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travel, such as auxiliary lanes, tnick climbing lanes, or dedicated bicycle lanes. Project elements within the corridor plans may include improvements to state highways, local streets and roads, public transit facilities, bicycle and pedestrian facilities, and restoration or preservation work that protects critical local habitat or open space.
2392. Aregionaltransportationplanningagencyorcountytransportation commission or authority responsible for preparing a regional transportation improvement plan under Section 14527 of the Government Code or the department may nominate projects for funding through the program that are consistent with the policy objectives of the program as set forth in this chapter. The commission shall allocate no more than one-half of the funds available each year to projects nominated exclusively by the department.
Preference shall be given to corridor plans that demonstrate that the plans and the specific project improvements to be undertaken are the result of collaboration between the depaitment and local or regional partners that reflect a comprehensive approach to addressing congestion and quality-of-life issues within the affected corridor through investment in transportation and related environmental solutions. Collaboration between the partners may be demonstrated by a project being jointly nominated by both the regional agency and the department.
2393. A project nomination shall include documentation regarding the quantitative and qualitative measures validating the project's consistency with the policy objectives of the program as set foith in this chapter. In addition to being included in a corridor plan, a nominated project shall also be included in the region's regional transportation plan. Projects within the boundaries of a metropolitan planning organization must be inctuded in an adopted regional transportation plan that includes a sustainable communities strategy determined by the StateAir Resources Board to achieve the region's greenhouse gas emissions reduction targets.
2394. The commission shall allocate program funds to projects after reviewing the corridor plans submitted by the regional agencies or the department and making a determination that a proposedproject is consistent with the objectives of the corridor plan. In addition to making a consistency determination with respect to project nominations, the commission shall score the proposed projects on the following criteria:
(a) Safety.
(b) Congestion.
(c) Accessibility.
(d) Economic development and job creation and retention. (e) Furtherance of state and federal ambient air standards and greenhouse gas emissions reduction standards pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38550) of the Health and Safety Code) and Senate Bill 375 (Chapter 728 of the Stahites of 2008).
(f) Efficient land rise.
(g) Matching funds.
(h) Project deliverability.
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2395. The commission shall adopt an initial program of projects to be funded through the initial appropriation for the program. The initial program maycoveramultiyearprograrnmingperiod. Subsequentprogramsofprojects shall be adopted on a biennial basis consistent with available funds for the program, and may inctude updates to programs of projects previously adopted.
2396. The commission, in consultation with the State Air Resources Board, shall develop and adopt guidelines for the program consistent with the requirements of this chapter. Guidelines adopted by the commission shall be exempt from the Administrative Procedure Act (Chapter 3.5 (comrnencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). Prior to adopting the guidelines, the commission shall conduct at least one public hearing in northern Califomia and one public hearing in southern California to review and provide an opportunity for public comment. The commission shall adopt the final guidelines no sooner than 30 days after the commission provides the proposed guidelines to the Joint Legislative Budget Committee and the transportationpolicy committees in the Senate and the Assembly.
2397. On or before March 1, 2019, and annually thereafter, the commission shall provide project update reports on the development and implementation of the program described in this chapter in its annual report to the Legislahire prepared pursuant to Section 14535 of the Govemment Code. A copy of the report shall be provided to the Joint Legislative Budget Committee and the transportation policy committees of both houses of the Legislature. The report, at a minimum, shall include information on each project that received funding under the program, including, but not limited to, all of the following:
(a) A summaiy describing the overall progress of the project since the initial award.
(b) Expendihires to date for all project phase costs. (c) A summary of milestones achieved during the prior year and milestones expected to be reached in the coming year. (d) An assessment of how the project is meeting the quantitative and qualitative tneasurements identified in the project nomination, as outlined in Section 2393.
SEC. 45. Section 4000. 15 is added to the Vehicle Code, to read:
4000.15. (a) Effective January 1, 2020, the department shall confirm, prior to the initial registration or the transfer of ownership and registration of a diesel-fueled vehicle with a gross vehicle weight rating of more than 14,000 pounds, that the vehicle is compliant with, or exempt from, applicable air pollution control technology requirements pursuant to Division 26 (commencing with Section 39000) of the Health and Safety Code and regulations of the State Air Resources Board adopted pursuant to that division.
(b) Except as otherwise provided in subdivision (cl for diesel-fueled vehicles subject to Section 43018 of the Health and Safety Code, as applied to the reduction of emissions of diesel particulate matter, oxides of nitrogen, 94 118
Ch. 5 - 46 -
and other criteria pollutants from in-use diesel-fueled vehicles, and Section 2025 of Title 13 of the California Code of Regulations as it read January 1, 2017, or as subsequently amended:
(1) The department shall refuse registration, or renewal or transfer of registration, for a diesel-fueled vehicle with a gross vehicle weight rating of 14,001 pounds to 26,000 pounds for the following vehicle model years:
(A) Effective January 1, 2020, vehicle model years 2004 and older. (B) Effective Januai'y 1, 2021, vehicle model years 2007 and older. (C) Effective January 1, 2023, vehicle model years 2010 and older. (2) The department shall refuse registration, or renewal or transfer of registration, for a diesel-fueled vehicle with a gross 'vehicle weight rating of more than 26,000 pounds for the following vehicle model years:
(A) Effective January 1, 2020, vehicle model years 2000 and older. (B) Effective January 1, 2021, vehicle model years 2005 and older. (C) Effective Januaiy 1, 2022, vehicle model years 2007 and older. (D) Effective January 1, 2023, vehicle model years 2010 and older. (c) (1) AsdeterminedbytheStateAirResourcesBoard,notwithstanding effective dates and vehicle model years identified in subdivision (b), the deparhnent may allow registration, or renewal or transfer of registration, for a diesel-fueled vehicle that has been reported to the State Air Resources Board, and is using an approved exemption, or is compliant with applicable air pollution control technology requirements pursuant to Division 26 (commencing with Section 39000) of the Health and Safety Code and regulations of the State Air Resources Board adopted pursuant to that division, inc)uding vehicles equipped with the required model year emissions equivalent engine or otherwise using an approved compliance option. (2) The State Air Resources Board shall notify the department of the vehicles allowed to be registered pursuant to this subdivision.
SEC.46. Section4156oftheVehicleCodeisamendedtoread:
4156. (a) Notwithstandinganyotherprovisionofthiscode,andexcept as provided in subdivision (b), the department in its discretion may issue a temporai'y pernnit to operate a vehicle when a payment of fees has been accepted in an amount to be determined by, and paid to the department, by the owner or other person in lawful possession of the vehicle. The pei'mit shall be subject to the terms and conditions, and shall be valid for the period of time, that the department shall deem appropriate under the circumstances. (b) (1) The department shall not issue a temporary permit pursuant to subdivision (a) to operate a vehicle for which a certificate of compliance is reqriired pursuant to Section 4000.3, and for which that certificate of compliance has not been issued, unless the department is presented with sufficient evidence, as determined by the department, that the vehicle has failed its most recent smog check inspection.
(2) Only one temporary pei'mit may be issued pursuant to this subdivision to a vehicle owner in a two-year period.
(3) Atemporarypennitissuedpursuanttoparagraph(1)isvalidforeither 60 days after the expiration of the registration of the vehicle or 60 days after 94 119
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the date that vehicle is removed from nonoperation, whichever is applicable at the time that the temporary permit is issued.
(4) A temporary pemiit issued pursuant to paragraph (1) is subject to Section 9257.5.
(c) (l) The department may issue a temporary permit pursuant to subdivision (a) to operate a vehicle for which registration may be refused pursuant to Section 4000.15.
(2) Onlyonetemporarypermitmaybeissuedpursuanttotissubdivision for any vehicle, unless otherwise approyedby the StateAirResources Board. (3) Atemporarypermitissuedpursuanttoparagraph(1)isvalidforeither 90 days after the expiration of the registration of the vehicle or 90 days after the date that vehicle is removed from nonoperation, whichever is applicable at the time the temporary permit is issued.
(4) A temporary permit issued pursuant to paragraph (1) is subject to Section 9257.5.
SEC. 47. Section 9250.6 is added to the Vehicle Code, to read:
9250.6. (a) In addition to any other fees specified in this code, or the Revenue andTaxation Code, commencing July 1, 2020, a road improvement fee of one hundred dollars ($100) shall be paid to the depaitment for registration or renewal of registration of every zero-emission motor vehicle model year 2020 and later subject to registration under this code, except those motor vehicles that are expressly exempted under this code from payment of registration fees.
(b) On January 1, 2021, and every January I thereafter, the Department of Motor Vehicles shall adjust the road improvement fee imposed under subdivision (a) by increasing the fee in an amount equal to the increase in the Califoi'nia Consumer Price Index for the prior year, except the first adjustment shall cover the prior six months, as calculated by the Department ofFinance, with amounts equal to or greater than fifty cents ($0.50) rounded to the highest whole dollar. The incremerital change shall be added to the associated fee rate for that year.
(c) Any changes to the road improvement fee imposed by subdivision (a) that are enacted by legislation subsequent to July 1, 2017, shall be deemed to be changes to the base fee rate for purposes of the California Consumer Price Index calculation and adjustment performed pursuant to subdivision (b).
(d) Revenues from the road improvement fee, after deduction of the department's administrative costs related to this section, shall be deposited in the Road Maintenance and Rehabilitation Account created pursuant to Section 2031 of the Streets and Highways Code.
(e) This section does not apply to a commercial motor vehicle subject to Section 9400.1.
(f) The road improvement fee required pursuant to this section does not apply to the initial registration after the purchase of a new zero-emission motor vehicle.
(g) For purposes of this section, "zero-emission motor vehicle" means a motor vehicle as described in subdivision (d) of Section 44258 of the 94 120
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Health and Safety Code, or any other motor vehicle that is able to operate on any fuel other than gasoline or diesel fuel.
SEC. 48. (a) On or before January 1, 2019, the Institute for Transportation Studies at the University of California, Davis is requested to prepare and submit to the Governor and the Legislature a report that makes recommendations on potential methodologies to raise revenue from zero-emission and low-emission vehicle owners to achieve the state's transportation electrification, clean air, and climate targets established under law while also ensuring those vehicle owners pay their fair share of any costs borne by motorists to fund improvements to the transportation system. (b) The report shall examine all fees, taxes, and incentives for zero- and low-emission vehicles, and other vehicles, and shall make recommendations for options that ensure the purchase and ownership of zero- and low-emission vehicles are properly incentivized to assiSt in meeting state clean air and climate targets, while also ensuring appropriate levels of funding for roads and transportation.
(c) The study shall assess annual fees on zero-emission vehicles or other vehicles not othei'wise subject to state fuel excise or use taxes and compare that to the average annual state fuel excise tax assessed on gasoline or diesel vehicles with equivalent fuel economy.
(d) The Institute shall consult with the State Air Resources Board, the Department of Transportation, the Depaitment of Motor Vehicles, and the State Board of Equalization in preparing the report. (e) This report shall be submitted in compliance with Section 9795 of the Government Code.
SEC. 49. Guidelines adopted to implement transportation programs in this act by the California Transportation Commission, the Department of Transportation, the Transportation Agency, or any other state agency shall be exempt from theAdrninistrative ProcedureAct (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Govemment Code).
SEC. 50. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to provide additional funding for road maintenance and rehabilitation purposes as quickly as possible, it is necessary for this act to take effect immediately.
o
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Item No. 6
al'ffifflMIAp!Rl@0!PICE
JUN D 7 2023
6t=3DW Cig of South Gate
CITY COUNCIL
AGENDA BI[LL
Department Director:
For e Regular Meeting of: June 13, 2023
Department: Public Works
Arturo
City Manager:
ChOr)is Iffers
SUBJECT: AMENDMENT N0. 2 TO CONTRACT N0. 3500 WITH ITERIS, INC.,
FOR ADDITIONAL PROFESSIONAL SERVICES FOR THE TWEEDY BOULEV ARD SIGNAL SYNCHRONIZATION PROJECT, LAMTA ID F7309, CITY PROJECT NO. 514-TRF
PURPOSE: Iteris, Inc., is under contract with the City of South Gate to provide engineering design services for the Tweedy Boulevard Signal Synchronization Project, LAMTA ID F7309, City Project No. 514-TRF ("Project"). Approval of Amendment No. 2 for additional services and corresponding funding is needed.
RECOMMENDED ACTIONS: The City Council will consider:
a. Approving Amendment No. 2 to Contract No. 3500 with Iteris, Inc., for additional design services for the Tweedy Boulevard Signal Synchronization Project, LAMTA ID F7309, City Project No. 514-TRF, in an amount not-to-exceed $40,500; and b. Authorizing the Mayor to execute Amendment No. 2 in a form acceptable to the City Attorney.
FISCAL IMPACT: There is no fiscal impact to the General Fund. Amendment No. 2 is in the amount of $40,500 and is proposed to be funded with Proposition C funds. The Project budget is summarized below.
Project Services Metro Call
for Pro,iects
Prop C Local
Return
Mitigation
Fees Total
Design Services Agreement $106,000 $69,929 $169,929
Amendment No. l $17,320 $17,320
Amendment No. 2 $40,500 $40,500
Construction $1,217,212 $372,251 $243,735 $1,833,198
Construction Contingency ' $250,000 $250,000
Pro,iect Management- $175,290 $175,290
Pro,ject Management Contingency $31,475 $31,475
Administrative $49,500 $49,500
Total $1,317,212 $500,000 $750,000 $2,567,212
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ANALYSIS: The City entered into a contract with Iteris, Inc., to provide professional services to prepare design and construction documents for the Project. Design was completed and construction bids were received, which were over budget. Iteris provided support to revise the bid package for rebidding by rearranging the bid package to include a Base Bid and an Additive Alternate Bid. The Additive Alternate Bid included a segment of Tweedy Boulevard and California Avenue. Construction bids were again received, and the City proceeded to award a construction contract, however without including the Additive Alternate Bid because it was over budget. As such, traffic signal synchronization improvements on a segment of Tweedy Boulevard and California Avenue will not be constructed. Additional design services are needed to remove these improvements from the project.
Amendment No. 2 provides design services needed to remove the segment of Tweedy Boulevard and California Avenue from the project. The types of revisions needed are associated with the cornrnunications aspects of the traffic signal synchronization improvements. The services include revising the traffic signal timing and coordination sheets, fiber communication schematic plans, field work, verification of communication along Atlantic Avenue and Firestone Boulevard with the City's Traffic Management Center, equipment inventory and integration support. These design changes are specifically required because the segments of Tweedy Boulevard and California Avenue are being removed from the project.
BACKGROUND: Tweedy Boulevard (the "Boulevard") is a vital arterial in the City's roadway network and provides access to a major commercial corridor, as well as a commercial district known as the Tweedy Mile. Boulevard also provides access to schools and residential neighborhoods and supports over 24,000 vehicle trips daily through a segment of roadway that has signalized intersections very closely spaced together. Poor circulation and congestion are common. Pedestrian volumes are also high as patrons frequent local businesses.
The City received a $1,317,212 grant from the Metropolitan Transportation Authority to fund the Project. The Project aims to improve pedestrian and vehicular safety and relieve traffic congestion on the boulevard by synchronizing 13 traffic signals along Tweedy Boulevard, between Victoria Avenue and Atlantic Avenue which entails installing conduit and cabling to physically connect the traffic signals.
On January 22, 2019, the City Council awarded a professional design services agreement, Contract No. 3500, to Iteris, Inc., in the amount of $169,929. On July 13, 2021, the City Council approved Amendment No. I to Contract No. 3500 in the amount of $17,320.
The project's design schedule was impacted by COVID and technical quality. Further, while design was completed in June of 2022 and subsequently bid for construction, the bids were over budget; therefore, the project required time to restructure and rebid.
The Project is currently in the construction phase. Construction is scheduled to begin June 5, 2023, and be completed by November 30, 2023.
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ATT ACHMENTS: A.
B.
C.
JL:lc
Proposed Amendment No. 2 and Proposal
Amendment No. 1 to Contract No. 3500
Contract No. 3500
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Attachment A
Amendment No. 2
Contract No. 3500
AMENDMENT N0. 2 TO CONTRACT N0. 3500 FOR ADDITIONAL
PROFESSIONAL DESIGN SERVICES FOR THE TWEEDY
BOULEV ARD SIGNAL SYNCHRONIZATION PROJECT, LAMTA ID F7309, CITY PROJECT N0. 514-TRF BETWEEN THE CITY OF SOUTH GATF, AND ITERIS, INC.
This Amendment No.2 to Contract No.3500 for additional Design Services for the Tweedy Boulevard Signal Synchronization Project, LAMTA ID F7309, City Project No. 514-TRF ("Amendment No. 2"), is made and entered into on June 13, 2023, by and between the City of South Gate, a California municipal corporation ("City"), and Iteris, Inc., a Delaware corporation ("Consultant"). The City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties."
RECIT ALS
WHEREAS, on January 22, 2019, the City Council approved Contract No. 3500 with Consultant ("Agreement") for professional services for a 3-year term through and including December 31, 2022, in the amount of One Hundred Sixty-Nine Thousand Nine Hundred Twenty-Nine Dollars ($169,929);
WHEREAS, the City and Consultant executed Amendment No. 1 extending the term of the Agreement for an additional 1-year term through and including December 31, 2023, in an amount not to exceed Seventeen Thousand Three Hundred Twenty Dollars ($17,320), for additional design services, under the terms and conditions of the Agreement, bringing the aggregate total of the Agreement, and Amendment No. 1 to One Hundred Eighty-Seven Thousand Two Hundred Forty-Nine Dollars ($187,249).
WHEREAS, the City and Consultant desire to execute Amendment No. 2 extending the term of the Agreement for an additional 1-year term through and including December 31, 2024, in an amount not to exceed Forty Thousand Five Hundred Dollars ($40,500), for services identified in Exhibit "A" attached hereto, under the terms and conditions of the Agreement, bringing the aggregate total of the Agreement, Amendment No. 1, and Amendment No. 2 to a total sum of Two Hundred Twenty-Seven Thousand Seven Hundred Forty-Nine Dollars ($227,749).
NOW, THEREFOR, the parties hereby agree as follows:
1. MODIFICATION TO AGREEMENT
1.1 TERM OF AGREEMENT
The term of the Agreement shall be extended by one (1) additional year through and including December 31, 2024, unless otherwise expressly extended and agreed to by both Parties in writing or terminated by either Party as provided in the Agreement.