South Gate City Council
June 9, 2026

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Commission, whether or not such charges, fees, or surcharges appear on a bundled or line-item basis on a customer's bill.

C. The tax administrator, from time to time, may survey electricity service suppliers to identify the unbundled billing components of electric retail service that they commonly provide to residential and other customers in the city, and the charges therefor, including those items that are mandated by state or federal regulatory agencies as a condition of providing such electricity service. The tax administrator, thereafter, may issue and disseminate to such electricity service suppliers an administrative ruling identifying those components and items which (1) are necessary for or common to the receipt, use or enjoyment of electricity service; or (2) currently are or historically have been included in a single or bundled rate for electricity service by a service supplier to retail customers. Charges for such components and items shall be subject to the tax imposed by subsection A above.

D. As used in this section, "using electricity" shall not include an electrical corporation's or governmental agency's receiving of electricity for resale.

E. The tax on electricity provided by self-production or by a non-utility service supplier not required by this chapter to collect the tax shall be collected and remitted as set forth in Section 7.29.045 of this chapter. All other taxes on charges for electricity imposed by this section shall be collected from the service user by the electric service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator on or before the 25th day of the following month.

Section2.79.040 Gas Users Tax
A. There is hereby imposed a tax upon every person using gas in the city, which is transported and delivered through a pipeline distribution system. The tax imposed by this section shall be at the rate of 9 percent of the charges made for such gas, including all services related to the storage, transportation and delivery of such gas.

B. There shall be excluded from the base to which the tax imposed by this section is applied:

1. Charges made for gas which is to be resold and delivered through mains or pipes; 2, Charges made for gas to be used in the generation of electrical energy by an electrical corporation; and

3. Charges made by a gas public utility for gas used and consumed in the conduct of the gas public utility's business.

C. As used in this section, "charges" shall include charges for all services, components and items for gas service that (1) are necessary for or common to the receipt, use, or enjoyment of gas service; or (2) currently are or historically have been included in a single or bundled rate for gas service by a service supplier to retail customers. "Charges" shall include, but is not limited to, the following:

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1. The commodity charges for purchased gas, or the cost of gas owned by the service user (including the actual costs attributed to drilling, production, li:[ting, storage, gathering, trunkline, pipeline, and other operating costs associated with the production, transmission, and delivery of such gas), which is delivered through a gas pipeline distribution system;

2. Gas transportatton charges, including interstate charges to the extent not included in cornrnodity charges;

3. Storage charges; provided, however, that a service supplier shall not be required to apply the tax to any charges for gas storage services when the service supplier cannot, as a practical matter, determine the jurisdiction in which such stored gas is ultimately used; but it shall be the obligation of the service user to self-collect the amount of tax not applied to any charge for gas storage by the service supplier and to remit the tax to the appropriate jurisdiction;

4. Capacity or demand charges, late charges, service establishment or reestablishment charges, transition charges, customer charges, minimum charges, annual and monthly charges, and any other charges which are necessary for or common to the receipt, use, or enjoyment of gas service; and,

5. Charges, fees, or surcharges for gas services or programs mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees, or surcharges appear on a bundled or line-item basis on a customer's bill.

D. As used in this section, "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by a service user in exchange for gas or services related to the delivery of gas.

E. The tax administrator, from time to time, may survey gas service suppliers to identify the unbundled billing components of gas retail service that they commonly provide to residential and other customers in the city, and the charges therefor, including those items that are mandated by state or federal regulatory agencies as a condition of providing such gas service. The tax administrator may issue and disseminate to such gas service suppliers an administrative ruling identifying those components and items which (1) necessary for or common to the receipt, use, or enjoyment of gas service; or (2) currently are or historically have been included in a single or bundled rate for gas service by a gas service supplier to retail customers. Charges for such components and items shall be subject to the tax imposed by subsectionA above.

F. The tax on gas provided by self-production or by a non-utility service supplier not required to collect a tax by this chapter shall be collected and remitted in the manner set forth in Section 7.29.045 of this chapter. All other taxes imposed on charges for gas by this section shall be collected from the service user by the gas service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator, on or before the 25th day of the following month.

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Section2.79.045 Collection of Tax from Service Users Making Direct Purchase of Gas or Electricity
A. Any service user subject to a tax imposed by Section 7.29.030 or by Section 7.29.040 of this chapter, which produces gas or electricity for self-use; whichreceives gas or electricity, including any related supplemental services, directly from a non-utility service supplier not required to collect a tax imposed by this chapter; or wich, for any other reason, does not have the full tax collected and remitted by its service supplier, a non-utility service supplier, or its billing agent on the use of gas or electricity in the city, including any related supplemental services, shall report that fact to the tax administrator and shall remit the tax due directly to the tax administrator within 30 days of such use.

B. The tax administrator may require such a service user to identify its non-utility service supplier and provide, subject to audit: invoices; books of account; or other satisfactory evidence documenting the quantity of gas or electricity used, including any related supplemental services, and the cost or price thereof. If the service user is unable to provide such satisfactory evidence, or if the tax administrator concludes in his or her reasonable discretionthat the costto calculate the tax is excessive, the tax administrator may determine the tax by applying the tax rate to the equivalent charges the service user would have incurred if the gas or electricity used, including any related supplemental services, had been provided by the primary supplier of gas or electricity within the city. The tax administrator shall make available rate schedules for this purpose.

Section2.79.050 Water Users Tax
A. There is hereby imposed a tax upon every person using water in the city which is transported and delivered through a pipeline distribution system. The tax imposed by this section shall be at the rate of 9 percent of the charges made for such water and shall be collected from the service user by the water service supplier or its billing agent.

B. As used in this section, "charges" shall apply to all services, components and items that (1) are necessary for or common to the receipt, use, or enjoyment of water service; or (2) currently are or historically have been included in a single or bundled rate for water service by a service supplier to retail customers. "Charges" shall include, but is not limited to, the following:

1. Water commodity charges (potable and non-potable),

2. Distribution or transmission charges,

3. Metering charges,

4. Customer charges, late charges, service establishment or reestablishment charges, franchise fees, francise surcharges, annual and monthly charges, and other charges, fees and surcharges which are necessary for or common to the receipt, use, or enjoyment of water service, and

5. Charges, fees, or surcharges for water services or programs, which are mandated by a water district or a state or federal agency, whether or not such charges, fees, or surcharges appear on a bundled or line-item basis on a customer's bill.

C. As used in this section, "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by a service user in exchange for water services.

D. The tax administrator, from time to time, may survey water service suppliers to identify the unbundled billing components of water retail service that they cornrnonly provide to residential and other customers in the city, and the charges therefor, including those items that are mandated by a wholesale or retail water supplier or a state or federal agency as a condition of providing such water service. The tax administrator, therea:[ter, may issue and disseminate to such water service suppliers an administrative ruling identifying those components and items which (1) are necessary for or common to the receipt, use, or enjoyment of water service; or (2) currently are or historically have been included in a single or bundled rate for water service by a service supplier to retail customers. Charges for such components and items shall be subject to the tax imposed by subsection A above.

E. There shall be excluded from the base to which the tax imposed in this section is applied charges for water which is to be resold and delivered through a pipeline distribution system.

F. The tax on water service imposed by this section shall be collected from a service user by the water service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator on or before the 25th day of the following month.

Section 2.79.060 Effect of Comingling Taxable Items with Nontaxable Items If any nontaxable charges are combined with and not separately stated fromtaxable service charges on a customer bill or invoice, the combined charge is subject to tax unless the service supplier identifies, by reasonable and verifiable standards, the portions of the combined charge that are nontaxable and taxable through the service supplier's books and records kept in the regular course of business, and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. A service supplier has the burden to prove the proper apportionment of taxable and nontaxable charges. If the service supplier offers a combination of taxable and nontaxable services, and the charges are separately stated, then for taxation purposes, the values assigned the taxable and nontaxable services shall be based on its books and records kept in the regular course of business and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. A service supplier has the burden to prove the proper valuation of the taxable and nontaxable services.

Section2.79.070 Exemptions
A. Nothing in this chapter shall be construed as imposing a tax upon the city, or upon any person or service when imposition of such tax upon that person or service would be in violation of a federal or state statute, the Constitution of the United States or the Constitution of the State of California.

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B. The taxes imposed by this chapter, shall not apply to any person who:

1. Is 65 years of age or older;

2. Resides at the service address as his or her primary place of residence; and

3. Has a combined gross income, including all taxable and non-taxable income of all members of the household in which the person resides, that does not exceed the income threshold established by the Tax Administrator pursuant to subdivision (C) of this section; and

4. Has filed the application described in subdivision (D) of tis section.

C. The Tax Administrator shall establish, by administrative rule, the household income thresholds applicable to the exemption provided in subdivision (B) of this section. In establishing such thresholds, the Tax Administrator shall use the income eligibility standards published by the California Public Utilities Commission for low-income utility assistance programs, as those standards are updated from time to time, with separate thresholds applicable to households of one or two persons and to households of three or more persons. In no event shall the threshold be set below the applicable CPUC standard in effect at the time of determination. The Tax Administrator shall update the applicable thresholds annually, consistent with any revision to the CPUC standards, and shall make the current thresholds publicly available in English and Spanish.

D. Any person claiming an exemption under subdivision (B) of this section shall apply to the Tax Administrator on a form approved by the Tax Administrator. The application shall include a declaration under penalty of perjury of the facts qualifying the applicant, including proof of age and documentation sufficient to establish the combined gross income of all household members for the prior calendar year. An approved exemption shall remain in effect unless the service user no longer meets the qualifying criteria, at which point the service user shall notify the Tax Administrator in writing within 30 days of any change in qualifying status. The Tax Administrator shall require annual re-verification of eligibility. A service user who fails to timely notify the Tax Administrator of a change in quali'fying status shall not be entitled to a refund of taxes collected and remitted during the period of ineligibility.

E. Upon request of the Tax Administrator, a service supplier or non-utility service supplier, or its billing agent, shall provide a list of the names and addresses of those customers 'ffihich, according to its billing records, are deemed exempt from the taxes imposed by this chapter.

F. ThedecisionofthetaxadministratormaybeappealedpursuanttoSection7.29.170ofthis chapter. Application to the tax administrator and appeal to the City Council pursuant to Section 7.29.170 of this chapter are prerequisites to a suit thereon.

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Section 2.79.080 Substantial Nexus and Minimum Contacts For purposes of imposing a tax or establishing a duty to collect and remit a tax under this chapter, "substantial nexus" and "minimum contacts" shall be construed broadly in favor ofthe imposition, collection, and/or remittance of a tax to the fullest extent permitted by state and federal law, and as it may change from time to time by judicial interpretation or by statutory enactment. Any communication service (including VoIP) used by a person with a service address in the city, which service is capable of terminating a call to another person on the general telephone network, shall be subject to a rebuttable presumption that "substantial nexus / minimiun contacts" exists for purposes of imposing a tax, or establishing a duty to collect and remit a tax, under this chapter. A service supplier shall be deemed to have sufficient activity in the city for tax collection and remittance purposes if its activities include, but are not limited to, any of the following: maintains or has witin the city, directly or through an agent or subsidiary, a place of residence or business of any nature; solicits business in the city by employees, independent contractors, resellers, agents or other representatives; solicits business in the city on a continuous, regular, seasonal or systematic basis by means of advertising broadcast or relayed firom a transmitter with the city or distributed from a location with the city; or advertises in newspapers or other periodicals printed and published within the city or through materials distributed in the city by means other than the United States mail; or if there are activities performed in the city on behalf of the service supplier that are significantly associated with the service supplier's ability to establish and maintain a market in the city for the provision of communication services that are subject to a tax under this chapter.

Section 2.79.090 Duty to Collect and Remit
Service suppliers shall collect and remit the taxes imposed by this chapter as follows:

A. The taxes shall be collected insofar as practicable at the same time as, and along with, the charges made in accordance with the regular billing practice of a service supplier. If a service user pays a service supplier less than the full amount of the charge and tax accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid. If a service user has notified the service supplier of refusal to pay the tax imposed on said charges, Section 7.29. 130 of this chapter shall apply.

B. A service supplier's duty to collect tax from a service user shall commence with the beginning of the first regular billing period applicable to the service user in which all charges normally included in such regular billing are subject to the provisions of this chapter. Where a person receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing period.

C. Each person required by this chapter to remit a tax shall file a return with the tax administrator on or before the due date, on forms approved by the tax administrator. The full amount of the tax owed shall be included with the return. The tax administrator is authorized to require such additional information as he or she deems necessary to determine if the tax is being levied, collected, and remitted in accordance with this chapter. Returns are due immediately upon cessation of business for any reason. The tax administrator, and its agents, shall maintain such returns as confidential information.

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Section 7.29.100 Collection Penalties - Service Suppliers or Self-Collectors A. Taxes collected from a service user, or self-collected by a service user subject to Section

7.29.045 of this chapter, are delinquent if not received by the tax administrator on or before the due date. Should the due date occur on a weekend or legal holiday, the return must be received by the tax administrator on or before the first regular working day following the weekend or legal holiday. A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by a service supplier in satisfaction of its obligations under this subsection shall be considered timely if the transfer is initiated on or before the due date, and the transfer settles into the city's account on or before the following business day.

B. If a service supplier, or a service user subject to Section 7.29.045 of this chapter, fails to remit any tax collected on or before the due date, said person shall pay a penalty for such delinquencies at the rate of 15% of the total tax that is delinquent in the remittance, and shall pay interest at the rate of three-quarters of one (0.75) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent, until paid.

C. To discourage fraud and cover anticipated costs the City would incur to identify and remedy fraud, the tax administrator shall have the power to impose additional penalties upon persons required to collect and / or remit taxes pursuant to the provisions of this chapter for fraud or gross negligence in collecting, reporting, or remitting tax at the rate of 25% of the tax due.

D. For collection purposes only, every penalty imposed and such interest that is accrued under the provisions of this section shall become a part of the tax required to be paid.

E. Notwithstanding the foregoing, the tax administrator may, in his or her discretion, modify the due dates of this chapter to be consistent with any uniform standards or procedures that are mutually agreed upon by other public agencies imposing a utility users tax, or otherwise legally established, to create a central payment location or mechanism. The tax administrator may also enter into written agreements with a service provider to alter the administrative details of this ordinance as appropriate to facilitate tax collection and remittance without undue expense to the service supplier or the City provided, however that no such agreement may materially alter the amounts due to the City.

Section 7.29.110 Actions to Collect
Any tax imposed on a service user under this chapter shall be deemed a debt owed by the service user to the city. Any such tax collected from a service user which has not been remitted to the tax administrator shall be deemed a debt owed to the city by the person required to collect and remit and shall no longer be a debt of the service user. Any person owing money to the city under this chapter shall be liable to an action brought in the name of the city for the recovery of such amount, including penalties and interest as provided for in this chapter, along with any collection costs incurred by the city as a result of the person's noncompliance with this chapter, including, but not limited to, reasonable attorney fees.

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Section 7.29.120 Deficiency Determination and Assessment A. The tax administrator shall make a deficiency determination if he or she determines that any person required to collect or self-collect taxes pursuant to this chapter has failed to collect and remit the proper amount of tax, including but not limited to, by improperly applying or failing to apply the tax to one or more taxable services or charges.

B. The tax administrator shall mail a notice of such deficiency determination to the person required to pay or remit the tax, which notice shall refer briefly to the amount of the taxes owed, plus interest at the rate of three-quarters of one (0.75) percent per month, or any fraction thereof, on the tax due from the date the city should have received the tax. Within 14 calendar days after service of such notice, the person may make written request to the tax administrator for a hearing. If the person fails to request a hearing within that time, the amount of the deficiency determination shall become a final assessment, and shall immediately be due and owing to the city.

C. If the person requests a hearing, the tax administrator shall cause the matter to be set for hearing not later than 30 days after receipt of the request. The tax administrator shall mail notice of the time and place of the hearing to such person at least 10 calendar days before the hearing, and the notice may designate records that said person must produce at such hearing.

D. At the time fixed for the hearing, the tax administrator or his or her designee shall hear all relevant testimony and evidence, including that of any other interested parties. At the discretion of the tax administrator, the hearing may be continued from time to time to allow presentation of additional evidence. Within a reasonable time following the conclusion of the hearing, the tax administrator or his or her designee shall issue a final assessment confirming, modifyirzg, or rejecting the original deficiency determination, and shall mail a copy of such final assessment to the person owing the tax. The decision of the tax administrator may be appealed pursuant to Section 7.29.170 of this chapter. A hearing request to the tax administrator and an appeal to the city council pursuant to Section

7.29.170 of this chapter are prerequisites to a suit thereon.

E. Payment of the final assessment shall become delinquent if not received by the tax administrator on or before the 30th day following service of the notice of final assessment.

The penalty for delinquency shall be 15% on the assessment, along with interest at the rate of tmee-quarters of one (0.75) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date of delinquency, until paid.

Section 7.29.130 Nonpaying Service Users
A. Whenever the tax administrator determines that a service user has deliberately withheld the amount of the tax from amounts remitted to a person required to collect the tax, or whenever the tax administrator deems it in the best interest of the city, he or she may relieve such person of the obligation to collect the taxes due under this chapter from certain named service users for specific billing periods. Whenever the service user has failed to pay the amount of tax owed for a period of two or more billing periods, the service supplier shall be relieved of the obligation to collect taxes due. The service supplier shall provide the city

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with the names and addresses of such service users and the amounts of taxes owed under the provisions of this chapter.

B. In addition to the tax owed, the service user shall pay a delinquency penalty at the rate of 15% ofthe tax owed, and shall pay interest atthe rate of three-quarters of one (0.75) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the due date, until paid.

C. The tax administrator shall notify the non-paying service user that the tax administrator has assumed the responsibility to collect the taxes due for the stated periods and demand payment of such taxes, including penalties and interest. The notice shall be served on the service user by personal delivery or by deposit of the notice in the United States mail, postage prepaid, addressed to the service user at the address to which the person required to collect the tax addressed bills; or, should the service user have a change of address, to his or her last known address.

D. If the service user fails to remit the tax to the tax administrator within 30 days of service of the notice, the tax administrator may impose an additional penalty of 15% of the tax owed.

Section 7.29.140 Additional Powers and Duties of the Tax Administrator A. The tax administrator shall have the power and duty, and is hereby directed, to enforce each and all of the provisions of this chapter.

B. The tax administrator may adopt administrative rules and regulations not inconsistent with provisions of this chapter to interpret, clarify, carry out and enforce the payment, collection and remittance of the taxes herein imposed. A copy of such administrative rules and regulations shall be available for inspection in the tax administrator's office.

C. To ensure compliance with this chapter, the tax administrator may audit any person required to collect and / or remit a tax pursuant to this chapter. The tax administrator shall notify said person of such an audit in writing. In the absence of fraud or other intentional misconduct, the audit period of review shall not exceed three years next preceding the date of service of notice of audit. Upon completion of the audit, the tax administrator may make a deficiency determination pursuant to Section2.79.l20 of this chapter for all taxes, penalties and interest owed, as evidenced by information provided by such person to the tax administrator. If said person is unable or unwilling to provide sufficient records to enable the tax administrator to verify compliance with this chapter, the tax administrator may make areasonable estimate ofthe deficiency. Said reasonable estimate shall be entitled to a rebuttable presumption of correctness.

D. Upon receipt of a written request of a taxpayer or tax collector, and for good cause, the tax administrator may extend the time for any filing required by this chapter for a period of not to exceed 45 days, provided that the time for filing has not already passed when the tax administrator receives the request. No penalty or interest for delinquent payment shall accrue by reason of such extension.

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E. The tax administrator shall determine the eligibility of any person who asserts a right to exemption from, or a refund of, the tax imposed by this chapter.

F. The tax administrator may compromise a claim pursuant to this chapter where the portion of the claim proposed to be released is less than $5,000. With the approval of the city council, the tax administrator may compromise larger claims.

G. Notwithstanding any provision in this chapter to the contrary, the tax administrator may waive any penalty or interest imposed upon a person required to collect and / or remit tax for failure to do so if the non-collection occurred in good faith and with reasonable diligence. In determining whether the non-collection was in good faith and reasonable diligence, the tax administrator shall consider, but need not be bound by, industry practice or other precedent.

Section 7.29.150 Records
A. It shall be the duty of every person required to collect and / or remit any tax imposed by this chapter to keep and preserve, for a period of at least three years, all records as may be necessary to determine the tax such person may have been liable to collect and remit, which records the tax administrator shall have the right to inspect at all reasonable times.

B. The tax administrator may issue an administrative subpoena to compel a person to deliver, to the tax administrator, copies of all records deemed necessary by the tax administrator to establish compliance with this chapter, including the delivery of records in a common electronic format on readily available media if the person keeps such records electronically in the ordinary course of business. As an alternative to delivering the subpoenaed records to the tax administrator on or before the due date provided in the administrative subpoena, such person may provide access to such records outside the city on or before the due date, provided that such person shall reimburse the city for all reasonable travel expenses incurred by the city to inspect those records, including travel, lodging, meals, and other similar expenses, but excluding the normal salary or hourly wages of those who make the inspection.

C. The tax administrator is authorized to execute a non-disclosure agreement approved by the city attorney to protect the confidentiality of customer information. The tax administrator may request from a person providing transportation or distribution services of gas or electricity to service users within the city, a list of the names, billing and service addresses, quantities of gas or electricity delivered, and other pertinent information, pursuant to Section 6354(e) of the California Public Utilities Code.

D. If a service supplier uses a billing agent or billing aggregator to bill, collect, and/or remit the tax, the service supplier shall:

1. Provide to the tax administrator the name, address and telephone number of each billing agent and billing aggregator currently authorized by the service supplier to bill, collect, and / or remit the tax; and

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2. Upon request of the tax administrator, deliver, or effect the delivery of, any information or record in the possession of such billing agent or billing aggregatorthat, in the opinion of the tax administrator, is necessary to veri:[y the proper application, calculation, collection and / or remittance of such tax.

E. If any person required to keep records under this section unreasonably denies the tax administrator, orthe tax administrator's designee, access to such records, or fails to produce the information requested in an administrative subpoena within the time specified, the tax administrator may impose a penalty on such person of $500 for each day following the initial date that the person refiises to provide such access, or following the due date set forth in an administrative subpoena. This penalty shall be in addition to any other penalty imposed under this chapter.

Section 7.29.160 Refunds
A. Whenever any tax imposed by this chapter has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the tax administrator, it may be refiinded as provided in this section.

B. The tax administrator may refund such tax provided that no re'fund shall be paid unless the claimant or his or her guardian, conservator, executor or administrator submits a written claim, under penalty of perjury, to the tax administrator within one year of the payment or collection. Such claim must clearly establish claimant's right to the refiind by written records. Nothing herein shall permit the filing of a refund claim for a class or group of taxpayers. City coiu'icil approval shall be required for any individual refund in excess of $5,000.

C. The tax administrator, or the city council, as claimed in excess of $5,000, shall act upon a refund claim within 45 days of its receipt. Said decision shall be final as to the City but subject to judicial review pursuant to Code of Civil Procedure section 1094.5. If the tax administrator or city council fails or refuses to act on a refund claim within the 45-day period, the claim shall be deemed to have been rejected on the 45th day.

D. Thefilingofawrittenclaimisaprerequisitetoanysuitthereon.Anyactionbroughtagainst the city pursuant to this section shall be subject to the provisions of Government Code section 940 et seq.

E. Notwithstanding other provisions of this section, whenever a service supplier, pursuant to an order of the California Public Utilities Commission, makes a refund to service users of charges for past utility services, the taxes paid pursuant to this chapter on the amount of such refunded charges shall also be refunded to service users, and the service supplier shall be entitled to a credit for such refiinded taxes against tax due upon the next monthly return.

Section 7.29.170 Appeals
A. ExceptastodecisionsrelatingtoarefundpursuanttoSection7.29.160,thissectionapplies to any deficiency determination, assessment, administrative niling, or other decision of the tax administrator concerning taxes due under this chapter. Any person aggrieved by such a

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decision of the tax administrator may appeal pursuant to this section and must do so as a prerequisite to any suit thereon. Nothing herein shall permit the filing of a claim or action on behalf of a class or group of taxpayers.

B. Such an aggrieved person may appeal that decision to the city council. Such an appeal must be submitted in writing to the city clerk within 14 days of the date of the deficiency determination, assessment, administrative ruling, or other decision at issue.

C. The city council shall fix a time and place for hearing such appeal before itself or a hearing officer. The appellant shall be served with notice of the time and place of the hearing, as well as any relevant materials, at leastten calendar days before the hearing. The city council or hearing officer may continue the hearing from time to time. At the time of the hearing, the appealing party, the tax administrator, and any other interested person may present such relevant evidence as he or she may have relating to the determination from whichthe appeal is taken.

D. Based upon the submission of evidence and review of the city's files, the hearing officer shall prepare for the city council's consideration, or the city council shall issue a written notice, and order upholding, modifying, or reversing the determination appealed. The city council's decision is final for the city but is subject to judicial review under Code of Civil Procedure Section 1094.6.

Section 7.29.180 Disposition of Funds
The utility users taxes collected under and pursuant to the provisions of this chapter shall be deposited and paid into the general fund of the city and expended for any lawful purpose of the city as the city council may determine.

Section 7.29.190 No Action to Prevent Collection of Tax No injunction, writ of mandate, or other legal or equitable process shall issue in any suit, action, or proceeding in any court against this city or against any employee or officer of the city to prevent or enjoin the collection under this chapter of any tax or any amount of tax required to be collected and/or remitted.

Section 7.29.200 Remedies Cumulative
All remedies and penalties prescribed by this chapter or which are available under any other provision of law or equity are cumulative. The use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter provided only that the city may not collect any liability under this chapter more than once.

Section 7.29.210 Notice of Changes to Ordinance
If a tax under this chapter is added, repealed, increased, reduced, or the tax base is changed, the tax administrator shall provide notice as Public Utilities Code Section 799 requires. Before the effective date of the ordinance change, each service supplier shall provide the tax administrator with a copy of any written procedures describing the information the service supplier needs to

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implement the ordinance change. If the service supplier fails to provide such written instructions, the tax administrator, or his or her agent, shall send, by first class mail, a copy of the ordinance change to all collectors and remitters of the city's utility users taxes according to the latest payment records of the tax administrator
Section 7.29.220 Future Amendment to Cited Statute Unless specifically provided otherwise, any reference to a state or federal statute in tis chapter shall mean such statute as it may be amended from time to time, provided that such reference to a statute herein shall not include any subsequent amendment thereto, or to any subsequent change of interpretation thereof, to the extent that such amendment or change of interpretation would require voter approval under California law or would result in a tax decrease (as, for example, as a result of excluding all or a part of a communication service, or charge therefor, from taxation).

Only to the extent voter approval would otherwise be required or a tax decrease would result, the prior version of the statute (or interpretation) shall remain applicable to construction of this chapter for any application or situation that would not require voter approval or result in a decrease of a tax, provisions of the amended statute (or new interpretation) shall apply to the maximum possible extent.

To the extent that the city's authorization to collect or impose any tax imposed under this chapter is expanded or limited as a result of changes in state or federal law, no amendment or modification of this chapter shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the authorization up to the full amount of the tax imposed under this chapter.

SECTION 2. The City Council may amend this Ordinance without a vote of the people provided, however, that voter approval is required for any amendment that would increase a tax within the meaning of Governrnent Code section 53750(h).

SECTION 3. This Ordinance is exempt from the California Environmental Quality Act (Pub.

Resources Code, § 21000 et seq.) ("CEQA"). It can be seen with certainty that there is no possibility that this Ordinance may have a significant effect on the environment. (14 CCR Fg 15061(b)(3).) Further, this Ordinance simply creates a governrnent funding mechanism, which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (14 CCR § 15378(b)(4).) SECTION 4. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The People of the City of South Gate hereby declare that they would have adopted this Ordinance, and each and every section, subsection, subdivision, sentence, clause, or phrase thereof without regard to whether any other portion of the Ordinance may be declared invalid or unconstitutional.

SECTION 5. Pursuant to Elections Code section 9217, this Ordinance shall take effect 10 days after certification of its approval by a majority of the electorate voting at the general election to be held November 3, 2026. Taxes shall be collected and remitted thereafter as provided in Public Utilities Code section 799.

137
SECTION 6. The Mayor shall sign, and the City Clerk shall attest to the passage of, this Ordinance upon certification by the City Council of the results of the election approving it.

We hereby certify that the voters of the City of South Gate did approve this Ordinance by majority vote on November 3, 2026.

PASSED, APPROVED and ADOPTED this day of 2026.

CITY OF SOUTH GATE:

B7:

Joshua Barron, Mayor
ATTEST:

BY:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

By:
gTh":!Thi''O..ey

138
Office of the
South Gate City Clerk Item No. 5
JUN - 'l 2026
FILED
I : %'o(m' Cig of South Gate

CITY COUNCIL
AGENDA BI[LL
For the Regular Meeting of: June 9, 2026
Originating Department: Office of the City Clerk
Ctl Clerk: (j Ci@ Manager: 'icl'%tts;(;y;ri(-
Yodit Glaze Rob Houstorz
SUBJECT: GENERAJ, MTJNICIPAL/CONSOLIDATED ELECTION TO BE HELD TUESDAY, NOVEMBER 3, 2026
PURPOSE: Calling for the holding of the South Gate General Municipal Election as required by the California Elections code.

RECOMMENDED ACI'IONS: The City Council wifi consider:
a. Adopting a Resolution callirig for the holding of a General Municipal Election to be held on Tuesday, November 3, 2026, forthe electionof certainofficers andrequestingthe Board of Supervisors of the Comty of Los Angeles to consolidate the election with any and all elections also called to be held on Tuesday, November 3, 2026 and requesting the Board to render specified services to the City relating to the conduct of a General Municipal Election to be held on Tuesday, November 3, 2026;
b, Adopting a Resolution approving regulations for Candidates for Elective Office pertaining to Candidates' Statement Submitted to the votets at the General Municipal Election to be held on Tuesday, November 3, 2026;
c. Adopting a Resolution to resolve a tie vote by Lot using the coin toss method for Elective Offices in tlie event of a tie vote at the November 3, 2026, Municipal Election; and d. AuthorizingtheCityC1erlctoissueanoticeofaGeneralMunicipalE1ectiontobeheldon November 3, 2026,
FISCAL IMPACT: The cost of conducting the election is estimated to be approximately $233,325.87 with the consolidation with the County of Los Angeles scheduled Primary Election, Funds are budgeted and will be allocated from the Elections Account Number 100-140-11-6105, Funds are not allocated in the current fiscal year municipal budget for a Special Runoff Election in case of atie vote.
139
ANALYSIS: Pursuant to California Elections Code 12101 (a), the City Council is required to adopt the attached Resolutions not earlier than the 127'h day and not later than the 1 13th day before any municipal election to fill offices and the City Clerk/elections official shall publish a notice of election in the city pursuant to Governrnent Code Section 6061. The Municipal Election is being held for the purpose of electing two (2) Members to the City Council, (1) City Treasurer and (l) City Clerk for the :[ull term of four (4) years.

BACKGROUND: Senate Bill415 mandates that all elections for general law cities in California align with the state's election cycle. In the County of Los Angeles there will be a general election held on November 3, 2026. Pursuant to SB 415, the City of South Gate having less than 25% of its voter population casting a vote, indicates that the City is mandated to align its General Municipal election with the state's election cycle. As a result, the Los Angeles County Registrar Recorder/County Clerk's Office is tasked with coordinating all election efforts with the various cities holding regularly scheduled General Municipal Elections on November 3, 2026.

The Notice of Election will be published before July 13, 2026, once in both English & Spanish in the Los Angeles WAVE Newspaper and La Opinion to comply with requirements from the Department of Justice. In addition, copies of said notice shall be posted at City Hall in both languages and on the City's website.

The estimated cost to conduct a Special Runoff Election is projected to be higher than that of the November 5, 2024, General Municipal Election because the City would not be consolidating election costs with the County of Los Angeles. However, the City Council does have the option of conducting a Special Runoff Election in-lieu of a coin toss to resolve a tie vote. The chances of a tie vote are remote; therefore, the need to resolve this occurrence is unlikely.

Section 15651 (a) & (b) of the California Elections Code authorizes the City Council, by a majority vote, to adopt provisions to require the conduct of a Special Runoff Election to resolve a Tie vote involving those candidates who receive an equal number of votes and are tied for the second highest votes for an elective office in the case of the City Council, or the first highest votes in the case of the City Clerk and City Treasurer. A Special Runoff Election shall be held only if the City Council adopts a Resolution prior to November 3, 2026; however, the City Clerk and Election Staff are recommending that a tie vote be resolved using the Coin Toss Method.

ATT ACHMENTS: A. Proposed Resolution (Consolidate Election) B. Proposed Resolution (Candidate Statement)
C. Proposed Resolution (Tie Vote - Coin Toss Method) D. Notice of Election (English/Spanish)
E. Election Estimate
2i 140
Attachment A
Agenda Bill 06/09/26
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA,

CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026, FOR THE ELECTION OF CERTAIN OFFICERS AND

REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGF,LES TO

CONSOLIDATE THE ELECTION WITH ANY AND ALL ELECTIONS ALSO CALLED TO BE HELD ON NOVEMBER 3, 2026 AND REQUESTING THE BOARD OF SUPERVISORS OF THE

COTJNTY OF LOS ANGELES TO RENDER SPECIFIED SERVICES TO THE CITY RELATING

TO THE CONDUCT OF THE CITY OF SOUTH GATE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026
WHEREAS, a General Municipal Election shall be held on November 3, 2026, for the election of two (2) Members of the City Council, one (1) City Treasurer and one (1) City Clerk of the City of South Gate; WHEREAS, pursuant to the Elections Code Section 10002, the City Council of the City of South Gate may by resolution request the Board of Supervisors of the County of Los Angeles to permit the County Clerk to render specified services to the City of South Gate relating to the conduct of an election; WHEREAS, subject to approval of the Board of Supervisors, these services shall be provided by the County Clerk;
WHEREAS, pursuant to Elections Code Section 10002, unless other arrangements satisfactory to the County have been made, the City shall reimburse the County in full for the services performed upon presentation of a bill to the City;
WHEREAS, pursuant to Elections Code Section 10400, whenever two or more elections are called to be on the same day, in the same territory, or in territory that is in part the same, they may be consolidated upon the order of the City Council calling the elections; WHEREAS the resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and WHEREAS various local elections may be or have been called to be held on November 3, 2026.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HF,REBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council does hereby declare that the above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. That pursuant to the requirements of the laws of the State of California relating to general law cities, there is called and ordered to be held in the City of South Gate, California on Tuesday, November 3, 2026, a General Municipal Election for the purpose of electing two (2) members of the City Council, one (1) City Treasurer and one (1) City Clerk for the full term of four (4) years.

Pagelof2
3 141
SECTION 3. That tlie City Council hereby orders the election to be consolidated with any and all elections also called to be held on November 3, 2026, insofar as said elections are to be held in the same territory or in territory that is in part the same as the territory of the City of South Gate and requests that the Board of Supervisors of the County of Los Angeles order sucli consolidation under Elections Code Sections 10401, 10402, and 10403.

SECTION 4. That the City Council hereby requests the Board of Supervisors of the County of Los Angeles to pen'nit the Los Aiigeles County Registrar-Recorder/County Clerk-Elections Division to provide any and all services necessary for conducting the election and agrees to pay for said services.

SECTION 5. That the County Elections Division is authorized to canvass the returns of the City of South Gate General Municipal Election, and the election shall be held in all respects as ifthere is only one election.

SECTION 6. That the voting centers for the election shall be open as required during the identified voting period from October 24, 2026, to November 3, 2026, pursuant to Sections 4007 and 14401 of the Elections Code.

SECTION 7. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 8. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 9. The City Clerk shall certify the adoption of this Resolution, which shall be effective upon its adoption.

SECTION 10. That the City Clerk is hereby authorized and directed to file a certified copy of this Resolution with the Board of Supervisors of the County of Los Angeles and the Los Angeles County Registrar-Recorder/County Clerk-Elections Division.

PASSED, APPROVED and ADOPTED this 9'h day of June 2026.

CITY OF SOUTH GATE:

BY:

Joshua Barron, Mayor
ATTEST:

B7:

Yodit Glaze, City Clerk
(SEAL)
Raul F. Salinas, City Attorney

142
Attachment B
Agenda Bill 06/09/26
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA,

ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERT AINING

TO CANDIDATE STATEMENTS SUBMITTED TO THE VOTERS AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026 WHEREAS, Section 13307 of the Elections Code of the State of California provides that the governing body of any local agency may adopt regulations pertaining to materials prepared by any candidate for a Municipal Election, including costs of the Candidate's Statement; and WHEREAS, the City Council of the City of South Gate seeks to adopt such regulations with respect to the General Municipal Election of November 3, 2026;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. GENERAL PROVISIONS
Pursuant to Section 13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at an Election to be held in the City of South Gate on November 3, 2026, may prepare a candidate's statement on an appropriate form provided by the City Clerk. The statement may include the name, age and occupation of the candidate and a brief description ofno more than 200 words of the candidate's education and qualifications expressed by the candidate himself or herself. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed in typewritten form in the Office of the City Clerk at the time the candidate's nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the City's next working day after the close of the nomination period.

SECTION 2. FOREIGN LANGUAGE POLICY
A. Pursuant to the Federal Voting Rights Act, candidates' statements will be translated into all languages required by the County of Los Angeles. The County is required to translate the candidate's statement into the Spanish language in addition to English.

B. Pursuant to state and federal law, the candidate's statement must be translated and printed in the voter's pamphlet in any required language as mandated.

C. The City Clerk shall comply with the following requirements.

1. Translation
a. Have all candidates' statements translated in required (Spanish) languages.

2. Printing
a. Print a bilingual voter sample ballot book in English and Spanish. b. PrintalltranslationsofstatementssubjecttoSection3paymentrequirements,atthe request of the candidate, including his or her candidate statement in the sample 143
ballot or voter infornnation guide as specified by the Los Aa'igeles County Clerk printing in English and Spanish.
c. Have all translations made available upon request in the Office of the City Clerk.

SECTION 3. PAYMENT
A. Translation

1. The Candidate shall not be required to pay for the cost of translating the candidate's statement into any mandated foreign language as specified in (A) and/or (B) of Section 2 above pursuant to federal and/or state law.

2. TheCandidateshallberequiredtopayforthecostoftranslatingthecandidatesstatement into any foreign language that is not required as specified in (A) and/or (B) of Section 2 above pursuant to federal and/or state law.

B. Printing

1. TheCandidateshanberequiredtopayforthecostofprintingthecandidate'sstatementin English in the sample ballot or voter information guide as specified by the Los Angeles County Clerk.

2. The Candidate shall be required to pay for the cost of printing the candidate's statements in a foreign language in (A) of Section 2 above, in the sample ballot or voter infori'nation guide as specified by the Los Angeles County Clerk.

3. The Candidate shan be required to pay for the cost of printing the candidate's statement in a foreign language by the candidate per (B) of Section 2 above in the sample ballot or voter infonnation guide as specified by the Los Angeles County Clerk.

4. The Candidate shall not be required to pay forthe cost of printing the candidate's statement in a foreign language required by (A) of Section 2 above, in the facsimile or electronic version of the sample ballot or voter infori'nation guide as specified by the Los Angeles County Clerk.

The City Clerk and/or County Clerk shall estimate the total cost of printing, handling, translating, and mailing the candidate's statements filed pursuant to this section, including costs incurred as a result of complying with the Voting Rights Act of 1965 (as amended), and require each candidate filing a statement to pay, in advance to the City, his or her estimated pro rata share as a condition of having his or her statement included in the sample ballot or voter information guide as specified by the Los Angeles County Clerk. In the event the estimated payment is required, the estimate is just an approximation of the actual cost that varies from one election to another election and may be significantly more or less than the estimate, depending on the actual number of candidates filing statements. Accordingly, the City Clerk and/or County Clerk is not bound by the estimate and may, on a pro rata basis, bill the candidate for additional actual expense or refund any excess paid depending on the final actual cost. In the event of underpayment, the City Clerk and/or County Clerk may require the candidate to pay the balance of the cost incurred. In the event of overpayment, the Clerk shall prorate the excess amount among the candidates and refund the excess amount paid within 30 days of the election. 144
SECTION 4. MISCELLANEOUS
A. All translations shall be provided by professionally certified translators.

B. The City Clerk shall allow (bold type) (underlining) (capitalization) (indentations) (bullets) (leading l'iyphens) to the same extent and manner as allowed in previous City elections.

C. The City Clerk shall comply with all recommendations and standards set forth by the California Secretary of State regarding occupational designations and other matters relating to elections.

SECTION 5. ADDITIONAL MATERIALS
No candidate will be pernnitted to include additional materials in the sample ballot or voter infon'nation guide as specified by the Los Angeles County Clerk.

SECTION 6. The City Clerk shall provide each candidate or the candidate's representative a copy of this Resolution at the tiine the nomination petitions are issued.

SECTION 7. All previous resolutions, if any, establishing council policy on payment for Candidate's statements are repealed.

SECTION 8. This Resolution shall apply to the election to be held onNovember 3, 2026, and shall then be repealed.

SECTION 9. The City Clerk shall certify to the adoption of this Resolution, which shall be effective upon its adoption.

PASSED, APPROVED and ADOPTED this 9'h day of June 2026.

CITY OF SOUTH GATE:

B7:

Joshua Barron, Mayor
ATTEST:

BY:

Yodit Glaze, City Clerk
(SEAL)
Raul F. Salinas, City Attorney
145
Attachment C
Agenda Bill 06/09/26
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE,

CALIFORNTA, RESOLVING A TIE VOTE BY LOT USING THE COIN TOSS METHOD FOR ELECTIVE OFFICES IN THE EVENT OF A TIE VOTE AT THE NOVEMBER 3, 2026, MUNICIP AL ELECTION
WHEREAS, Section 15651 of the Elections Code of the State of California authorizes the City Council, by majority vote, to adopt provisions by which a tie vote shall be resolved.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. Pursuant to Section 15651 of the Elections Code of the State of California, if two or more persons receive an equal and the highest number of votes for an office to be voted for within the City, the City Council shall summons only those candidates who received the tie votes, at a time and place to be designated by the City Clerk. The City Clerk shall at that time and place determine the tie by lot using the "Coin Toss Method" in accordance with the procedures set forth in Section 3, below. (Alternative Method: In lieu of resolving a tie vote by lot as provided in subdivision (a), the legislative body of any City not subject to the Uniform District Election Law may resolve a tie vote by the conduct of a special runoff election involving those candidates who received an equal number of votes and the highest number of votes.) SECTION 2. The provisions of Section 1 shall apply only to the election to be held on November 3, 2026, and shall then be repealed.

SECTION 3. The procedure used for the determination of the winner using the coin toss shall be attached to this Resolution as Exhibit "A" and that such be signed by the candidates who are tied. [Remainder of page left blank intentionally.]
146
SECTION 4. The City Clerk shall certify to the adoption of this Resolution, which shall be effective upon its adoption.

PASSED, APPROVaED and ADOPTED this 9'h day of June 2026.

CITY OF SOUTH GATE:

By:

Joshua Barron, Mayor
ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
APPROVE AS TO FO :

By:

Ra'al F. Salinas, City Attorney
"I 147

PROCEDURE FOR COIN TOSS FOR DETERMINATION OF THE WINNER It is proposed that a toss of a coin be used to detem'ffne the winner of tlie tie election in the manner which faollows:

Selection of Coin
l) A u.s. minted dollar coin shall be used in the
tOSS.
2) The coin shall be obtained by the Elections
Official from the City Finance Department or
from a local bank.
3) Both candidates shall be allowed to examine the selected coin.

Candidates' Witnesses
1) Each candidate shall select one person, of his/her choice, to act as a witness.
2) The witness sliall verify the results of the
drawing of cards and the coin toss, but shall not touch either the cards or the coin.

Selection or Person to Call Coin
l) Each candidate shall write his/her name on five separate 3"x 5" index cards.
2) The ten index-cards shall then be folded once
and placed in a solid colored container.
3) One card shall be drawn from the container by
the Elections Official and shown to the (Head of
the Legislative Body'), the two candidates, and
the two witnesses.
4) The Election Official (or Head of the Legislative Body*) shall announce who shall call the toss.

Method of Tossing Coin
l) The coin shall be tossed by the Election Official (or Head of the Legislative Body*), tO a height
of at least six feet, flipping end over end. If the proper height or form is not attained, the
Elections Official shall call a fault before the
coin hits the ground, and the coin shall be tossed agam.
2) The call must be made by the selected candidate after the coin leaves the hand, but before it
begins its decent to the floor. If the call is not
made before it begins its decent, the Elections
Official shall call a fault before the coin hits the ground and the coin shall be tossed again.
3) The coin shall be allowed to fall directly to the floor and come to rest without interference of
any kind, including but not limited to, contact
with the following: any person, any person's
apparel, cliairs, tables, walls, wires, or draperies.

If the coin comes in contact with any object
except the floor, the Elections Official shall call a fault before the coin comes to a rest, and the
coin shall be tossed again.
4) No person shall touch the coin until the
Legislative Body declares the result.

Verification of Result
l) TheElectionOfficial(orHeadoftheLegislative
Body*) and the two witnesses shall view the coin
first and agree on the result, without touching the com.
2) Once the results have been so verified, the two candidates may view the coin, without touching
it.
3) Following this, the remaining members of the
Legislative Body shall view the coin, without
touching it.
4) Following this, all other interested parties may view the coin, without touching it.

Declaration of Result
l) Once all interested parties have viewed the coin, The Election Official (or Head of the Legislative Body*) will announce the winner of the toss and
entertain a motion to declare the winner of the
toss the winner of the election.
2) Once the Legislative Body has acted to declare
the winner, the coin shall be picked up.
3) The declaration shall be put in the appropriate
written form (Resolution declaring the Results of
the Election, Form 17A), signed by the (Head of
the Legislative Body*) and transmitted to
Elections Official of the Legislative Body.
*Head of Legislative Body can be defined as:

Mayor of a City or Town Council
President of a Board of Directors or Board of
Trustees
Acknowledged and Understood by:

Candidate Date
Candidate Date
(O148
Attachment D
Agenda Bill 06/09/26

NOTICE OF ELECTION
NOTICE IS HEREBY GIVEN that a General Municipal Election will be held in the City of South Gate on Tuesday, the 3rd day of November 2026 for the following Officers:

For two (2) Members of the City Council
For one (1) City Treasurer
For one (1) City Clerk
Full term of four (4) years
Full term of four (4) years
Full tenn of four (4) years
The nomination period for these offices begins on Monday, July 13, 2026, at 7:00 a.m. and closes on Thursday, August 7, 2026, at 5:30 p.m.

If no one or only one person is nominated for an elective office, appointment to the elective office may be made as prescribed in Section 10229 of the Elections Code of the State of California.

The vote centers for the election shall be open on October 24, 2026, and close at 8:00 p.m. on November 3, 2026, providing an 1 1-day voting opportunity, pursuant to Sections 4007 and 14401 of the California Elections Code.
/s/Y odit Glaze, City Clerk
R149

AVISO DE ELECCI('N
POR MEDIO DE LA PRESENTE SE DA AVISO que se llevarA a cabo una Elecci6n Municipal General en la Ciudad de South Gate el Martes 3 de Noviembre de 2026 para elegir los siguientes Oficiales:

Para dos (2) miembros del Concejo Municipal
Para un (1) Tesorero de la Ciudad
Para una (1) Secretaria Municipal
Pleno plazo de cuatro (4) afios
Pleno plazo de cuatro (4) arios
Pleno plazo de cuatro (4) afios
El periodo de nominaci6n para estos puestos comienza el Lunes, 13 de Julio de 2026 a las 7:00 a.m. y cierra el Jueves, 7 de Agosto de 2026 a las 5:30 p.m.

Si nadie o s61o una persona es nominada para un puesto elegido, nombramiento a tal puesto electivo puede ser hecho seg4n estA prescrito por la Secci6n 10229 del C6digo de Elecciones del Estado de California.

Los centros de votaci6n (casetas) estaran abiertos por un periodo de 11 dias comenzando el 24 de Octubre de 2026 y concluyendo el 3 de Noviembre 2026, a las 8:00 p.m., segan estA prescrito en las Secciones 4007 y 14401 del C6digo Electoral del estado de California. /s/Y odit Glaze, Secretaria Municipal
tl 150
Attachment D

VOTING & ELECTIONS RECORDS COUNTY CLERK NEWSROOM PUBLICATIONS JOBS CONTACT [Election Estimatinq Calculator
Go to Election
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Select Estimate Type The estimated cost is based on the cost factors below. Any changes to the election cost factors will impact the final costs for your jurisdiction.

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CITY OF SOUTH GATE
2026 November General Election
CITY OF SOUTH GATE - At Large
Voter Count
Registered Voters (RV)
Rate Breakdown Estimated Cost
148,504 l
Election Operations (rate o r:tv)
Vote By Mail Processing (rate " RV)
1$2.7201 " 48504
l$0.8878 " 48504
$131 ,935.73
$43,061 .85
Samp/e Ballot Processing and Printing
I
:Office(s)/Seat(s) (rate a NO. or otrices a RV)
I
i Measures(S) (rate ' No. of Measures ' RV)
llVle-asureTex;:r-ate-'Noil-fTextP::s-fora:-measul- D-;V)'--'--a--=--- jVoting Information (rate a RV)
:o_q':_2 " _4" _ __! $4,695.191
$0.0242 a q a )
II
II48504
a-$0-.Cr;-!;'Ta7--a-' !
48504 i
i-i5-.3-ii"'4-8--50-4 "-j
f-=--l
' $1 173.801
+-"-, $3,516.54
i-------'--
I $18,242.35
Candidate Filing and Campaign Finance (rate a No. or camiaates) ) $1843.1509 " 16 % $29,490.41 EleCtiOn Preparaion COSt (Flatrate perjurisdiction) $1,210.00 CITY OF SOUTH GATE TOTAL ESTIMATE $233,325.87
DISCLAIMER: Please note that calculating an estimate using the Election Cost Estimate Calculator is not consent or agreement to hold, consolidate or provide support services for an election. Requests from jurisdictions for any election scenario must be received in the form of an adopted resolution or other official document and considered by the Board of Supervisors and Registrar-Recorder/County Clerk at the appropriate time. For more information, please contact the Election Information and Preparation Division at ecuprrcc.lacounty.qov.

Oo@*e
locounty*gov
f'ilioul Us Pnvacy Policy ! 11sei Piglils Disclau'iqei Site fvlap Accessil>ility 151
Office of the
South Gate City Clerk
JUN - 'l 2026
Item No. 6
FILED
('.3e=7 Ci§ ofSouth Gate

CITY COUNCIL

AGENDA BULL
Department Head:

For the Regular Meeting of: June 9, 2026
City Manager:

Arturo Cervantes Rob Houston
SUBJECT: ORDINANCE GRANTING A FRANCmSE AGREEMENT TO

TORRANCE PIPELINE COMPANY, LLC
PURPOSFJ: This agenda item is continued from the City Council meeting of May 26, 2026. The City regulates utility companies with facilities located within the public right-of-way through franchise agreements, On March 24, 2026, the City Council adopted,Resolution No. 2026-13-CC declaring its intention to grant a franchise to Torrance Pipeline Company, LLC (TPC) for the continued operat'on of its existing oil transmission pipeline w'thin the City's public right-of- way, Ordinance No, was introduced during the City Council Meeting of May 12, 2026, Adoption of Ordinance No, is the last action needed for the City Council to renew the Franchise'Agreement.

RF,COMMENDED ACTIONS: Waive the reading in full and adopt Ordinance No. granting a five-year franchise to Torrance Pipelirie Company, Ll,C, with an automatic five-year extension unless the City provides timely notice of termination, for the use, maintenance, repair, and replacement of one existing pipeline beneath designated public streets, together with related appurtenances, for the transmission and distribution of oil and oil products.

FISCAL IMPACT: There is no impact to the General Fund. If the City Council adopts the Ordinance granting the franchise, Torrance Pipeline Company, LLC (TPC) will pay the City a one-time granting fee and ongoing annual franchise fees, Staff recommend a five-year flat fee stmcture based on the cumulative Consutner Price Itidex for All Urban Consumers (CPI-U) over the prior five years, with adjustments every five years. Beginning in Year 6, the annual fee will be recalculated using the cumulative CPI-U from Years 1 through 5 and then remain fixed thaough Yeu 10.

Annual Fees Granting Fee Total
Year 1 $38,797 $13,849 $52.646
Year 2 to 5 $155,188 $0 $155,188
"Year 6 to 10 $203,685 $0 $203,685
TOtal $397,670 $13,849 $411,519
*For the purposes of thii report, the CPI increase is '=stimated at 5%; however, the actual CPI will be applied, 1 152
The granting fee is consistent with South Gate Municipal Code Title 13, Division 1, Chapter

13.10, Section 13.10.010 (Rates - General). The annual franchise fee is established in compliance with California Public Utilities Code Section 6231.5(e)(2) for non-publicly owned utility pipelines. This statute authorizes an annual franchise fee either (Alt No. 1) in an amount agreed upon by the applicant and the municipality, or (Alt No. 2) in an amount calculated using the statutory diameter-and-length formula. Considering CPI-U inflation and the City's ongoing administrative and public right-of-way oversight responsibilities associated with the pipeline, the proposed fees were selected under Alt No. 1.

NOTICING PROCEDURE: A Notice of Public Hearing was duly published in The Press, a newspaper of general circulation, on April 23, 2026.

ANALYSIS: On October 25, 2022, the City Council adopted Ordinance No. 2022-09-CC granting Torrance Pipeline Company, LLC (TPC) a Franchise Agreement to maintain and operate Pipeline No. M-145. The pipeline consists of approximately 1.7 miles (8,960 feet) of active 12-inch-diameter pipe and is the only active TPC-owned line within the City. Ordinance No. 2022-09-CC expires on September 13, 2026. The proposed Franchise Agreement would renew the authorization for a 5-year term begiru'iing September 13, 2026, through September 13, 2031. The Franchise Agreement currently includes a provision stating that the term will automatically renew for an additional five (5) years unless the City provides written notice of termination at least sixty (60) days prior to the expiration date.

The proposed Franchise Agreement is substantially the same as the current agreement, except for the effective period, term, and fees. Key provisions include:
* A 5-year term from September 13, 2026, through September 13, 2031, with an automatic 5-year renewal unless the City provides written notice of termination at least sixty (60) days prior to the expiration date. Terms and conditions consistent with California Public Utilities Code Section 6201 and the Ordinance.
* Pipeline maintenance in compliance with all applicable city, county, state, and federal laws, regulations, and requirements. Requires pipeline pressure testing at a frequency consistent with all applicable State and Federal requirements as a preventative leak detection and safety measure.
* Requires that any damage to any public property caused shall be promptly repaired by Franchisee at its sole cost and expense.
* Liability insurance, bonding, and indemnification requirements. * Franchise payments and operating requirements governing TPC's use of the public right- of-way.
* A comprehensive emergency response plan meeting federal and state requirements, including 24-hour notification and emergency response services (traffic control, excavation, repair, and necessary supplies/services) within two (2) hours of notice, and restoration of public streets, alleys, or parkways within seventy-two (72) hours.

The Pipeline is located within 500 feet of the East Los Angeles Community College expansion project, Southeast High School, and Simon Rodia Continuation School. The Franchise 2 153
Agreement requires TPC to operate the Pipeline in accordance with Government Code Section 51010, under which the California State Fire Marshal has exclusive safety regulatory and enforcement authority over hazardous liquid pipelines. The State Fire Marshal may implement the federal Hazardous Liquid Pipeline Safety Act (49 U.S.C. Sec. 2001 et seq.) and related federal pipeline safety regulations as needed to maintain annual federal certification.

Accordingly, the Pipeline must be used, operated, repaired, and modified in compliance with safety regulations established by the California State Fire Marshal and, as applicable, the fire authority having jurisdiction, consistent with Chapter 13.14 (Special Provisions for Oil Pipelines), Division 1 (Oil, Gas and Water Pipelines), Title 13 (Franchises) of the South Gate Municipal Code. The State Fire Marshal is also required to conduct annual inspections of the Pipeline to verify compliance, and TPC must submit certified test results pursuant to the Pipeline Safety Act of 1981.

BACKGROUND: On April 14, 2026, the City Council adopted Resolution No. 2026-13-CC declaring the City's intention to grant a franchise to Torrance Pipeline Company, LLC, a Delaware limited liability company, for the continued operation of an existing oil transmission pipeline within the City. Introduction of the proposed Ordinance is the second of three required City Council actions necessary to grant the Franchise Agreement.

Pipeline No. M-145 transports refined oil products from the Torrance Refinery to the Vernon Terminal through the City of South Gate. Within the City, the pipeline is located beneath Santa Fe Avenue from Independence Avenue to Southern Avenue, Southern Avenue from Santa Fe Avenue to Alameda Street, and Alameda Street from Southern Avenue to Seminole Avenue, forming one continuous pipeline alignment.

The proposed schedule for issuance of the Franchise Agreement is as follows:

1. April 14, 2026 - The City Council adopted Resolution No. 2026-13-CC declaring the City's intention to grant a franchise agreement to TPC.

2. May 12, 2026 - The City Council conducted the required public hearing and introduced Ordinance No. granting the franchise to TPC.
3, May 26, 2026 - City Council considered the ordinance for adoption; however, based on public comments and Council direction, the item was continued to allow for further review and additional infornnation before final action.

4. June 9, 2026 - This agenda item is continued from May 26, 2026. City Council will consider adopting the Ordinance granting the franchise to TPC, along with any updated terms and supporting information included in the staff report.

TPC is requesting renewal of the franchise for Pipeline No. M-145 (Ordinance No. 2329).

Approval is recommended for the following reasons:
* Granting the franchise provides the City with enforceable rights and requires TPC to perform specific obligations for the benefit of the City under Article 4 (Public Utilities Code Sections 6291 through 6302) of the Franchise Act of 1937, including:
3 154
o The City's right to terminate the franchise and/or pursue legal remedies if TPC fails to perform its obligations.
o Compliance with City ordinances and policies governing the location, use, and maintenance of the pipeline and appurtenances.
o Compensation to the City for repairs to public property made necessary by TPC's operations.
o Indemnification and defense of the City against claims and damages arising from TPC's operations.
o Removal and relocation of the pipeline, at TPC's expense, when required due to changes in grade, alignment, or width of public streets. o Notice to the City of any sale, transfer, assignment, or lease of the franchise or rights granted under it.
o Posting of financial security (e.g., corporate surety bond or equivalent) available to the City as liquidated damages if TPC fails to meet franchise requirements. * The Franchise Agreement requires TPC to submit aru'iual reports confirming that operation and maintenance of the pipeline comply with applicable federal and state law.

In a letter dated February 10, 2026, the Department of Forestry and Fire Protection, Office of the State Fire Marshal (OSFM), Pipeline Safety Division, confirmed that TPC has maintained and operated Pipeline No. M-145 (OSFM PLID #0205) in compliance with applicable laws and regulations. The letter notes that OSFM identified company- level program deficiencies in July 2023 related to written procedures under 49 C.F.R. §195.452 and integrity management requirements, and that amended procedures were reviewed by OSFM. Importantly, no violations were identified for PLID #0205 at the time of inspection, and OSFM records indicate the M-145 line was last internally inspected on August 20, 2024.
* If approved, the franchise will provide a one-time granting fee and ongoing aru'iual fees to the City.

Compliance with CEQA: Pipeline No. M-145 is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the CEQA Guidelines (Existing Facilities). This exemption applies because the proposed action involves continued operation of an existing pipeline franchise with negligible or no expansion of the existing use.

ATT ACHMENTS: A.

B.

C.

D.

KT:ky
Proposed Ordinance
Notice of Public Hearing
State Fire Marshal Inspection Letter
Location Map
4 155
Attachment A
Agenda Bill 6/09/26
ORDINANCE NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE,

CALIFORNIA, GRANTING TO TORRANCE PIPELINE COMPANY A FRANCHISE, WITH A TERM EXPIRING FIVE (5) YEARS AFTER THE

EFFECTIVE DATE OF THIS ORDINANCE (SUBJECT TO EXTENSION

AT THE CITY'S DISCRETION), TO USE, MAINT AIN, REP AIR AND

REPLACE, RELOCATE OR REMOVE A SINGLE PIPELINE AND

RELATED APPURTENANCES BENEATH SPECIFIED PUBLIC

STREETS, FOR TRANSMITTING AND DISTRIBUTING OIL AND OIL

PRODUCTS
WHEREAS, the City of South Gate ("City"), pursuant to applicable federal, state and local law, is authorized to grant franchises within the South Gate city limits; and WHEREAS, on October 25, 2022, the South Gate City Council adopted Ordinance No. 2022-09-CC, granting Torrance Pipeline Company LLC, a Delaware limited liability company ("Grantee"), a franchise to operate the pipeline identified in Section 1.E of this Ordinance ("Pipeline"); and
WHEREAS, that franchise expires on September 13, 2026; and WHEREAS, the City and Grantee have now agreed upon the ternns of the renewal of that franchise, which are set forth in this Ordinance; and WHEREAS, on April 14, 2026, the South Gate City Council approved the scheduling of a Public Hearing for May 12, 2026; and adopted a Resolution declaring the City's intent to grant a ten-year franchise to Grantee that stipulates provisions for the use, maintenance, repair, replacement, relocation, or removal of a single pipeline beneath specified public streets, together with related appurtenances, for transmitting and distributing oil and oil products.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SECTION l: Definitions. Whenever in this Ordinance the words or phrases hereinafter in this section defined are used, it is intended that they shall have the respective meanings assigned to them in the following definitions (unless, in the given instance, the context wherein they are used shall clearly import a different meaning):

A) The word "City" shall mean the City of South Gate, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form.

AS13772.0860872 4921-8380-3536v4 1
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B) The "Effective Date" is the date on which this Ordinance becomes effective, as set forth in Section 13 below.

C) The word "Franchise" shall mean the rights and privileges granted by the City to Grantee in Section 2 below.

D) The word "Grantee" shall mean Torrance Pipeline Company LLC, a Delaware limited liability company, which is the entity to whom the Franchise contemplated in this Ordinance is granted, and its lawful successors or assigns.

E) The word "Pipt4ine" shall mean that certain 8,960 foot long, 12-inch diameter pipeline (located beneath Santa Fe Avenue from Independence Avenue to Southern Avenue, beneath Southern Avenue from Santa Fe Avenue to Alameda Street, and beneath Alameda Street from Southern Avenue to Seminole Avenue) commonly referred to by Grantee as Pipeline No. M-145, and which shall be used for conducting, transporting, conveying and carging oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, and similar liquid substances
F) The phrase "Pipeline and Appurtenances" shall mean the Pipeline and any appurtenant or related appliance, attachment, cable, cathodic protective device, conduit, equipment, fitting, gauge, main, manhole, meter, pump, regulator, service, trap, valve, vault, vent or wire, where located under, along, across or upon Santa Fe Avenue, Southern Avenue and Alameda Street in the vicinity of the Pipeline.

G) The phrase "Pipeline Franchise Ordinance" shall mean that certain pipeline franchise Ordinance adopted by the City Council of the City and codified at Chapters 13.02 through

13.18, inclusive, of the South Gate Municipal Code.

H) The phrase "Street" shall mean the public streets, alleys and places within the City of South Gate as the same now or may hereafter exist, and in which the City has the ability to grant a franchise.

SECTION 2: Grant of Franchise. Pursuant to California state law as codified in Sections 6231 through 6235, inclusive, of the Public Utilities Code, the City hereby grants to Grantee the right, privilege and franchise to operate, maintain, use, repair, replace, and remove the Pipeline and Appurtenances for the purpose of conducting, transporting, conveying and carrying oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, and similar liquid substances under and across those portions of the Streets identified in Section 1.E above ("Franchise"). The rights granted herein shall be subject to (a) the terms and conditions set forth in this Ordinance, and (b) repairs to or replacements of the Pipeline and Appurtenances by the Grantee, at the Grantee's expense, and at such time or times as directed by the City. Grantee shall file with the South Gate City Clerk, not later than the Effective Date, a written acceptance of the terms and conditions of this Ordinance
SECTION 3: Term. The Franchise shall be for an initial term commencing on September 14, 2026, and expiring on the fifth (5Ih) anniversary of the Effective Date, unless terminated earlier by the City pursuant to Section 11 below. That term shall be automatically extended for one AS13772.0860872 4921-8380-3536v4 2
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successive five-year term, unless the City delivers to Grantee a written notice of termination not later than sixty (60) days prior to the expiration of the initial term.

SECTION 4: Fees. As consideration for the Franchise, Grantee shall pay the City as follows:

A) Grantee shall pay the City a one-time franchise granting fee of Thirteen Thousand Eight Hundred Forty-Nine Dollars ($13,849) pursuant to Section 13.10.010 of the South Gate Municipal Code.

B) The Grantee shall pay the City an aru"iual franchise fee of Four Dollars and Thirty-Three Cents ($4.33) per linear foot of the Pipeline, which equates to a total aru'iual franchise fee of Thirty-Eight Thousand Seven Hundred Ninety-Six Dollars and Eighty Cents ($38,796.80). The annual franchise fee shall remain fixed during the initial five years of the term of the Franchise. Upon the sixth (6'h) year of the term of the Franchise (if the City has not exercised its termination option pursuant to Section 3 above), the City shall adjust the annual franchise fee by applying the cumulative percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for Los Angeles-Long Beach-Anaheim over the immediately preceding five-year period, and the adjusted annual franchise fee shall remain fixed for the remaining term of the Franchise.

C) On or before the Effective Date, the Grantee shall pay the City an amount equal to the sum of: (i) the franchise granting fee; and (ii) the annual franchise fee for the one-year period comtnencing on the Effective Date.

D) Thereafter, on each aru'iiversary of the Effective Date for the duration of the term of the Franchise, Grantee shall pay the annual franchise fee to the City.

E) Pursuant to Section 13.10.060 of the South Gate Municipal Code, Grantee shall pay a late fee equal to ten percent (10%) of any payment due hereunder, where such payment remains unpaid beyond thirty (30) days after the date on which such payment is due.

F) Any neglect, omission or refusal by the Grantee to make any such payment as and when due shall be grounds for the declaration of a forfeiture of the Franchise and of all rights hereunder after thirty (30) days' notice to cure has expired as provided for in Section 11 below.

G) In the event of abandonment of facilities with the approval of the City as elsewhere in this Ordinance provided, or in the event of removal of such facilities by the Grantee, the payments otherwise due the City for occupancy of the roads or highways by such facilities shall be prorated for the calendar year in which such removal or abandonment occurs as of the end of the calendar month in which removed or abandoned.

SECTION 5: Insurance. Grantee shall do all of the following on or before the Effective Date:

A) Provide satisfactory evidence to the City that Grantee has obtained policies of liability and worker's compensation insurance from companies authorized to transact business in the State of California by the Insurance Commissioner of California, in the amounts and AS13772.0860872 4921-8380-3536v4 3
158
providing such coverage as required by Section 13.08.050 of the South Gate Municipal Code.

B) File with the South Gate City Clerk, as required by Section 13.08.050 of the South Gate Municipal Code, either (i) certified copies of the policies or (ii) a certificate of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force.

C) File and thereafter at all times during the life of the Franchise keep on file with the South Gate City Clerk a corporate surety bond running to the City inthe penal sum of one hundred thousand dollars ($100,000) which meets all the requirements of Section 13.08.060 of the South Gate Municipal Code.

D) As an alternate to the filing of a bond, the Grantee may deposit with the City Clerk and assign to the City savings and loan certificates or shares, or both, in the same amount as required on such bond, as authorized by Section 13.08.070 of the South Gate Municipal Code.

SECTION 6: Modification or Approval of Pipeline and Appurtenances. Within ninety (90) days following the date in which Pipeline and Appurtenances or any portion thereof have been modified or removed under this Franchise, the Grantee shall file a plan or plans in such forms as may be required by the City's City Engineer showing the accurate location and size of such modified Pipeline and Appurtenances then in place within the locations identified in Section 1.E of this Ordinance, above.

SECTION 7: Additional Conditions. The Grantee of this Franchise shall:

A) Maintain the Pipeline and Appurtenances in accordance with and in conformity with all City, County, State and Federal ordinances, statutes, rules, regulations and other laws (whether now existing or hereafter adopted) applicable to the installation, location, use, maintenance and/or removal of the Pipeline and Appurtenances; B) Pay to the City, on demand, the cost of all repairs to public property made necessary by any operations of the Grantee under this Franchise, including restoring the Street to its original condition upon the removal of all or any portions of the Pipeline and Appurtenances, or upon the ternnination or non-renewal of the Franchise; C) Indemni:ty and hold harmless the City, its officers and employees from any and all liability for damages proximately resulting from the Grantee's acts or omissions under this Franchise; and be liable to the City for all damages proximately resulting from the failure of said Grantee well and faithfully to observe and perform each and every provision of this Franchise;
D) Remove or relocate, at the request of the City and without expense to the City, any or all of the Pipeline and Appurtenances if and when made necessary by any lawful change of grade, alignment or width of the affected Street;
AS137720860872 4921-8380-3536v4 4
159
E) Use, operate, repair or modify any pipeline for the transportation of flammable or combustible liquids, in a manner prescribed by the California State Fire Marshall, and/or Chief of Los Angeles Fire Department in accordance with Chapter 13.14 of the South Gate Municipal Code;
F) Conduct tests and submit certified test results thereof for the Pipeline (including without Iimitation hydrostatic pressure tests and other pressure tests) at such times and in such manner as required by the Pipeline Safety Act of 1981, California Government Code Section 51010, et seq. The testing shall be conducted as required by the California State Fire Marshal, and certified test results shall be requested by the City from the Fire Marshal.

In the event the State Fire Marshal shall fail to provide such certified test results to the City, grantee shall provide such test results to the City upon request; and G) If wishing to renew the Franchise, submit a written petition of franchise renewal to the City at least ninety (90) days prior to the expiration date of this Franchise.

H) Comply with any and all other obligations and be subject to all liabilities established in California Public Utilities Code sections 6291 through 6302, inclusive.

SECTION 8: Excavation Permits. Grantee shall obtain an excavation permit, and pay the applicable fee therefore, prior to commencing any excavation in the right-of-way. Grantee may obtain an excavation permit by filing a set of excavation plans with the City Engineer, which plans shall be subject to the City Engineer's review and approval. The excavation plans shall show the location of the proposed excavation, as well as the location of all laiown existing pipes, sewers, conduits, improvements and other facilities in or under any Street or public property in which the franchise property is located with an adequate description of the proposed work, including an estimate of the duration of the interference with any street traffic. The issuance of any excavation permit for the repair, modification or replacement of a pipeline for the transmission of flammable or combustible liquids, gases or hazardous materials, shall be as prescribed by the Fire Chief of the Los Angeles County Fire Department in accordance with Chapter 13.14 of the South Gate Municipal Code.

A) Where it is necessary to lay underground pipes through, under or across any portion of a paved or macadamized street, such work, where practicable and economically feasible, shall be done by a tunnel or bore so as not to disturb the foundation of such paved or macadamized street. If the same cannot be done, or if it is necessary to cut the street in order to access existing pipes and appurtenances, such work shall be done pursuant to an excavation permit, as provided in this Section 8, to be issued by the City Engineer upon application, therefore.

B) All work shall be subject to inspection by the City Engineer. All street coverings or openings, valves, vaults and manholes shall at all times be kept flush with the surface of the streets; provided, however, that vents for underground vaults and manholes may, subject to the prior approval of the City Engineer, extend above the surface of the streets when such vents are located in parkways, between the curb and the property line. Grantee shall provide adequate traffic safety barriers, signs, devices and traffic safety warning AS13772.0860872 4921-8380-3536v4 5
160
equipment in accordance with City ordinances, rules or regulations, and shall comply with such additional safety measures as the City Engineer may direct.

SECTION 9: Emergency Procedures.

A) Grantee shall develop and maintain an emergency response plan, satisfactory to the City Engineer, which covers all franchise operations within the City. The initial dra:it of that emergency response plan shall be delivered to the City Engineer not later than the Effective Date. In general, an emergency response plan meeting the requirements of Federal and State law and containing the information contained in this section shall be acceptable. The emergency response plan shall include a 24-hour notification program and proof of arrangements capable of providing emergency response services, including but not limited to traffic control, street excavation, pipeline repair, and supplies and services as necessary, within two (2) hours of notification of any problem, and such other information as the City Engineer shall reasonably require. Repairs to a public street, alley or parkway shall be completed within seventy-two (72) hours unless otherwise authorized by the City Engineer.

The City Engineer shall be notified ten (10) days in advance of any proposed change in such arrangements.

B) Whenever any Pipeline or Appurtenance breaks or leaks so as to cause the release of oil or products thereof into the public right-of-way, Grantee, and any other person using or controlling the Pipeline or Appurtenance, shall irnrnediately notify the City's Police Department and Public Works Department and shall implement precautionaty safety measures including traffic control, system shutdown, valve closures, and public notification. In the event of an emergency which threatens life, health, safety or property, and where it is not possible to obtain an excavation permit prior to commencement of the work, the Grantee may commence such work; provided, however, that within seventy-two (72) hours thereafter Grantee shall make application to the City Engineer for an excavation permit in accordance with the procedures specified herein. The City Engineer may impose conditions upon the issuance of the excavation permit, and all work shall be subject to inspection. Adequate traffic safety barriers shall be maintained at all times, and any damaged portion of the Street shall be restored to its original condition.

C) If any portion of any Street, or any other City property or public property, is damaged by reason of defects in the Pipeline and Appurtenances, or any portion thereof, or by reason of any other cause attributable to or arising from the operation of the Pipeline and Appurtenances, the Grantee shall, at its sole cost and expense, immediately repair all damages and restore the Street and such other property to the condition existing before such damage occurred. All such work shall be done under the direction of the City Engineer, and to the reasonable satisfaction of the City Engineer. Grantee shall repair such damage and restore the Street and such other property within three (3) working days a:[ter written demand therefore by the City Engineer, or such other period as the City Engineer may authorize when required for the protection of the public health and safety.

D) If Grantee, after reasonable notice, fails or refuses to pave, surface, grade, repave, resurface, repair or regrade as required by the provisions of this Franchise, the City may cause the work to be done and shall keep an itemized account of all costs, including AS13772.0860872 4921-8380-3536v4 6
161
reasonable administrative overhead expenses. Grantee shall pay such costs to City within thirty (30) days after presentation to Grantee of an itemized account of such costs.

SECTION 10: Records.

A) Grantee acknowledges that the City's records may not be complete and that pipelines and appurtenant structures unrelated to the Pipeline, and previously unknown to City, are frequently discovered. Consequently, by granting this Franchise or by approving any excavation permit requested by Grantee, the City does not warrant the accuracy of information supplied to the Grantee by the City regarding the location or existence of other facilities. Nothing herein shall be deemed to make the City, or any officer, agent or employee of the City, responsible or Iiable to the Grantee or to any other person by virtue of the City's approval of excavation permits and/or plans, regardless of whether any information is supplied by the City to the Grantee pertaining to the location of existing pipes, facilities or other improvements on, in or under any Street or other public property.

B) Grantee shall keep and preserve within the County of Los Angeles for a period of ten (10) years, subsequent to the date of the most recent franchise fee determination as ascertained by an audit made by the City or on its behalf, all the records necessary to determine the amount of such franchise fee.

C) At all reasonable times, Grantee shall permit the City or its duly authorized representative to examine the Pipeline and Appurtenances and, with the exception of records or other materials containing confidential or proprietary information, to examine and transcribe any and all books, accounts, papers, maps, and other records kept or maintained by the Grantee or under its control and associated withthe Pipeline and Appurtenances and/or the financial condition of the Grantee with respect thereto.

SECTION 11 Early Termination of Franchise.

A) If Grantee shall fail, neglect or refuse to comply with any of the provisions or conditions of this Franchise, and shall not, within thirty (30) days after written demand for compliance, begin the work of compliance, or after commencing such compliance shall fail to prosecute the same with due diligence to completion, then the City, acting by and through its legislative body, may declare this Franchise forfeited.

B) If Grantee voluntarily surrenders, abandons, assigns, transfers, sells or leases the Franchise without the prior express written consent of the City (which consent shall not be unreasonably withheld), the City may terminate this Franchise.

C) The Franchise shall automatically terminate if another governrnental entity acquires by eminent domain the Streets beneath which the Pipelines and Appurtenances are located.

D) In the event of noncompliance by Grantee with any of the conditions hereof, the City may, in addition to all other remedies provided for herein, bring suit for the forfeiture or termination of this Franchise.

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SECTION 12: Removal or Abandonment of Facilities.

A) At the expiration, revocation or termination of this Franchise or of the permanent discontinuance of the use of all or a portion of the Pipeline or Appurtenances, the Grantee shall, within thirty (30) days therea:[ter, make written application to the Director of Public Works for authority either to: (1) abandon all or a portion of such facilities in place; or (2) remove all or a portion of such facilities. Such application shall describe the facilities desired to be abandoned, their location with reference to City highways, and shall describe with reasonable accuracy the physical condition of such facilities. The Director of Public Works shall determine whether any abandonment or removal which is thereby proposed may be affected without detriment to the public interest and under what conditions such proposed abandonment or removal may be affected. He or she shall then notify Grantee of his or her determinations.

B) Within thirty (30) days after receipt of such notice, Grantee shall apply for a permit from the Public Works Department to abandon or remove the Pipeline and Appurtenances (or portion thereof, as appropriate).

C) Grantee shall, within ninety (90) days after obtaining such permit, commence the work authorized by the permit, and shall thereafter diligently prosecute that work to completion.

SECTION 13: Effective Date. This Ordinance shall take effect and be in force on the date ("Effective Date") which is the latter of (a) thirty (30) days after its adoption, or (b) the date when Grantee files written acceptance of the Franchise with the South Gate City Clerk in accordance with Public Utilities Code Section 6235.

SECTION 14: Posting of Ordinance. The City Clerk shall certify the adoption of this Ordinance and shall cause same to be published as required by law. [Remainder of page left blank intentionally]
AS13772.0860872 4921-8380-3536v4 8
tz 163
PASSED, APPROVED and ADOPTED this 9'h day of June 2026.

ATTEST:

BY:

Yodit Glaze, City Clerk
(SEAL)
"PRO'?5ffKF"
By:

Raul F. Salinas, City Attorney
AS13772.0860872 4921-8380-3536v4
CITY OF SOUTH GATE:

B7:

Joshua Barron, Mayor
9 t3 164
Attachment B
, Agenda Bill 6/09/26

SOUTH GATE PRESS
1007 N SEPULVEDA BLVD STE 1357, MANHATTAN BEACH, CA 90266 Telephone (323) 556-5720 / Fax (213) 834-0584
TIJs spaca 10T rlllng slzimp orily
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APR 2 7 2026
FILED
Yodit Glaze, City Clerk

CITY OF SOUTH GATE /CITY CLERK
8650 CALIFORNIA AVE
SOUTH GATE, CA - 90280

PROOF OF PUBLICATION
(2015.5 c.c.p.)
State of Csliforniei
County of LOS ANGELES
NOtiCt-T.YPe: HRG-NOTICEOFHEARING
Ad Descrlption:

Torrance Pipeline Company, LLC
I am a cillzen of the United States and a resldent of the State of Callfornla; I am over the age of elghteen years, and not a party to or interested in the above entitled matter. I am the prlncipal clerk of the printer and publisher of the SOUTH GATE PRESS, a newspaper published In the Engllsh language in the city of SOUTH GATE, county of LOS ANGELES, and adjudged a newspaper of general circulatLn as defined by the laws of the Stale of California by the Superlor Court of the County of LO8 ANGELES, State of California, undt.r date 04/19/1929,CaseNo.2734l5. Thatthenotk.e,ofwhlchtheannexedisa printed copy, has been publlshed In each regular and entire Issue of said newspaper and not in any supp!emenl thereof on the following dates, to-wit:

WWA#: 403817al
CITY OF 80UTH GATE
NOTI(J: OF PUBLIC H € ARING
NOTK:E IS HETleBY (ilV(:Nlhal the City Councll
of 8otilh Gale, CalHomla will comucl 9 publla
hgsiliig to Introduce an Oidnance gisrilln( a five
(5) yes Tianchlsg to Torrance Pipellne Company,
LL(., to um, malnfaln, mpalr and replace a slngls
plpellne tmngalh spet'ltod pubfolk, l:lreneBtmglllllonggslBhnedrwlui mgled appurtenances, dlslrlbullng peuoleum pioduds.

Tonenw Ppellno Company, LLC, arid IIs
eucoesaors and ssglgns wlll, dtnlng the life of Iha ihgeic:ii,ale!engW!II,blffepall4nacnh+ilguBs.lIyanridomlnlhlhsedaelveeon bs revlewed In the CRy Clerk's offloe diinn(l
normal buslnsmi hours.

DATE: Tuesday, May 12, 2026
TLloMcEQT6io'30Np.m
Cauta:II Chambers
8oulli Gals (.lly Hell
8650 CsllTomla Avtinue
S(11111l GE119. GA 90280
NOTICE !l H):RHBY GNEN lhal eny and all
NOTICE 18 HEREBY GIVEN by omer oT the Clly
Clerk of sald ally and Is dated April 23, 2028.
s/Yodll Glaze, City Clink
4/23{28
WA.403al71#
80UTH GATE PRE88
04/23/2026
Executed on: 04/23/2026
At Los Angeles, Californla
I oertify (or declare) under penalty of perjury that tl'ie Foregoing is true am CClrrect.

Slgnature
llllllllllllllllltlllllllllillllllllllllllllllllllllllllllllllllllllllllll Emall
l'l 165
sbJ:oAj';cierb

CITY OF SOUTH GATE
'APR21 ma>v

NOTICE OF PUBLIC HEARING FILED
NOTICE IS HEREBY GIVEN that tlie City Council of Soutl'i Gate, Califoiia will conduct a priblic liearing to introdrice axi Ordinance granting a five (5) year francliise to Toi-rance Pipeline Company, LLC, to rise, maintain, repair and replace a single pipeline beneatli specified public streets, togetlier witli related appuitenances, for transmitting and distributing petroleum products.

Torrance Pipeline Company, LLC, and its successors and assigi'is will, during the life of the franchise, pay to the City the percentage specified in tlie proposed Ordinance, that the percentage will be paid ai'uiually from the date of tlie granting of tlie francl'iise, and in the event sucli payment is not made tlie francluse will be forfeited. A copy of the proposed Ordinance can be reviewed in tlie City Clerk's office during normal business l'iours.

DATE:

TIME:

LOCATION:

Tuesday, May 12, 2026
6:30 p.m.

Council Chambers
South Gate City Hall
8650 Califomia Avenue
South Gate, CA 90280
NOTICE IS HEREBY GIVEN that any and all persons interested in the matter herein above set fortli are privileged to attend said hearing arid tlien there testify or present evidence ripon any matter relating thereto.

NOTICE IS HEREBY GIVEN by order of the City Clerk of said City and is dated April 23, 2026.

Y aze, City Clerk
Publicatioxi date: Tl'uirsday, April 23, 2026
Account Number: 100-701-31-6302
t'5-166
Docusign En4'lo'pPf5h:JT!lWl!';782-4F8F-B8E2-8023481E15E5 Agenda Bill 6/09/26
STATE OF CALIFORNIA-NATURAL RESOURCES AGENCY Gavin Newsom, Govemor

DEPARTMENT OF FORESTRY AND FIRE PROTECTION
3780 Kilroy Airport Way, Suite 500
Long Beach, Califomia 90806
(562) 497-0350
Website: www.fire.ca.gov
February 10, 2026
Kenneth Tang, P.E.

Senior Civil Engineer
City of South Gate
Department of Public Works
8650 California Avenue
South Gate, California 90280
SUBJECT: TORRANCE PIPELINE COMPANY, LLC - M-145 (OSFM PLID #0205) Dear Kenneth Tang,
The Department of Forestry and Fire Protection (CAL FIRE) - Office of the State Fire Marshal (OSFM) confirms that Torrance Pipeline Company, LLC is in compliance with the Federal and State laws and regulations regarding the operations and maintenance of the below referenced pipeline in the City of South Gate.

Torrance Pipeline Company, LLC (TPLC) operates the M-145 line (OSFM PLID #0205) within the City oT South Gate. The TPLC's M-145 line flows from Torrance meter station to Torrance Vernon Terminal with a connection to Kinder Morgan Watson Station. The M-145 line (OSFM PLID #0205) consists of 12.75" in diameter and is 18.26 miles in total length. TPLC is required to maintain and inspect the above referenced pipeline pursuant to the California Pipeline Safety Act and the u.s. Department of Transportation Code of Federal Regulations. CAL FIRE - Office of the State Fire Marshal (OSFM), Pipeline Safety Division completed several inspections of OSFM PLID #0205 between October 2021 and February 2026 and identified the following violation of state or federal laws and regulations at the company level in July 2023:
* PBF's IMP Manual did not establish an adequate written EFRD procedure in accordance with 49 C.F.R. §195.452(i)(4) as required by §195.452(f)(6). An amended procedure was reviewed by the OSFM.
* PBF's IMP Manual did not establish an adequate written procedure for risk analysis criteria in accordance with 49 C.F.R. §195.452(i)(2) as required by §195.452(f)(6).

An amended procedure was reviewed by OSFM.

Additionally, the following items of concern were identified at the company level in July 2023:
* PBF's Section 5.5.1.3 of its Integrity Management Program (IMP) Plan requires Consultant/Contractors to be Level Ill certified perASNT ILI-PQ-2010. A contractor "The Department of Foi'estzy and Fire Protection sei'ves and safeguards the people and protects the propeHy and resotwces of Califonyia. = 167
Docusign Envelope ID: 941934B1-E782-4F8F-B8E2-8023481E15E5 Kenneth Tang
February 10, 2026

for PBF reviewed the last assessment results of its Torrance-SWT 2 and the record indicates that he does not have Level Ill Certification. * PBF performed an in-line inspection (ILI) of its Torrance-SWT 2 on 'I 2/09/2021 and received the final report from the ILI vendor on 2/09/2022, which is 62 days from the date of assessment. It is our understanding that PBF declared the date of discovery on 6/07/2022, which is 180 days from the date of assessment. * PBF conducted annual pipeline risk evaluation/implementation on 8/02/2022. PBF should have updated the risk analysis for the Grapevine to Lebec pipeline segment to include the newly identified threat, which is stress corrosion cracking (SCC), and calculated the new risk score of the subject line because the Grapevine to Lebec pipeline segment experienced a release on I 1/1 9/2020.

No violations were identified on OSFM PLID #0205 at the time of inspection.

State and federal pipeline regulations require each pipeline operator to continually assess the pipeline integrity at established time intervals. The OSFM records indicate that TPLC's M-145 line (OSFM PLID #0205) was last internally inspected on August 20, 2024.

If you have any questions regarding inspections of this operator, please do not hesitate to contact the OSFM, Pipeline Safety Division at (562) 497-0350.

Sincerely,

JAMES HOSLER
Assistant Deputy Director
Chief of Pipeline Safety and CUPA Programs
t7 168
Attachment D
Agenda Bill 6/09/26
I
u
i:l
ILJ
l;
I
169
Office of the
South Gate City Clerk
Item No. 7
JUN - 'l 202€:

FILED
Cig of South Gate

CITY COUNCIL

AGE'NDA BNLL
For the Regular Meeting of: June 9, 2026
DepartmentDirector:

Arturo Cervantes Rob Houston
SUBJECT: RESOLUTION ADOPTING THE LOCAL STRF,ETS AND ROADS FUNDING PROGRAM PROJECT LIST FOR F'JSCAL YEAR 2026/27 TO COMPLY

WITH SENATE BILL I REQUIRF,MENTS
PURPOSE: To approve the Local Streets and Roads Funding Program Project List to fulfill the State's requirement to program Senate Bill I ("SBI") funds, which is estimated the City would receive $2,608,180 in Fiscal Year 2026/27.

RECOMMENDED ACTION: The City Council will consider adopting a Resolution adopting the Local Streets and Roads Funding Program Project List for Fiscal Year 2026/27 to program (a) $350,000 in Senate Bill 1 funds for the Annual Sidewalk Grinding Program, (b) $1,450,000 in Senate Bill 1 funds for the Citywide Residential Resurfacing Phase V, (C) $408,180 in Senate Bill 1 funds forthe CitywideResidential ResurfacingPhaseVI, and (d) $400,000 inSenateBill 1 funds for the Citywide Sidewalk Imptovements Phase XI, for a grant total of $2,608,180 in Senate Bill 1 funds.

FISCALIMPACT: There is no impact to the General Fund. The $2,608,180 Fiscal Year 2026/27 Senate Bill I funding allocation is proposed to be programmed as follows:

Project Title SB 1 Funds Fiscal Year Account No. Estimated Useful Life
Annual Sidewalk Grinding
Program $350,000
2026/27
TBD
10 Yeats
Citywide Residential
Resurfacing Phase V $1,450,000 20 Years
Citywide R-esidential
Resurfacing Phase VI $408,180 20 Years
Citywide Sidewalk
Improvements Phase XI $400,000 311-790-39-9486 15 Years I
Total $2,608,180
ANALYSIS: The City receives SBI funding annually from the State of California, The State requires recipient agencies to annually program SBI funds by adopting a resolution that approves a project list known as the Local Streets and Roads Funding Program Project List ("Project List").

The Project Lists consists of qualifying projects as defined in the Senate Bill 1 Guidelines. 1 170
According to the guidelines, quali'[ying 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 Resolution before the City Council meets this requirement. The Project List includes qualifying projects that focus on fixing roads and sidewalks on residential streets, for a total of $2,608,180.

BACKGROUND: SB1wasapprovedbytheGovernorin20l7andisla'iownastheRoadRepair and Accountability Act of 2017. SBI provides :[unding to address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road systems. Aru'iually, the program allocates over $230 Million statewide of which the City receives an annual allocation.

To meet SBI guidelines, the City must approve a Project List by way of City Council Resolution to receive annual program :[unds. Staff are recommending that the $2.6 Million in SBI funding allocation for Fiscal Year 2026/27 be programmed as follows. * Annual Sidewalk Grinding Program: The project is proposed to be included in the City's 5-Year Capital Improvement Program for Fiscal Year 2026/27, to repair sidewalks on residential streets. Design and construction are scheduled to be completed in FY 2026/27.

The streets to be included in the project will be selected during the design phase. It is recommended that $350,000 be programmed for the design and construction phases. @ Citywide Residential Resurfacing, Phase V: The project is a part of the City's 5-Year Capital Improvement Program to repair road pavements and sidewalks on residential streets. It is recornrnended that $1,450,000 be progratnmed for the construction phase. The streets to be included in the project are selected during the design phase in accordance with the City's Pavement Management System.
@ Citywide Residential Resurfacing, Phase VI: The project is a part of the City's 5-Year Capital Improvement Program to repair road pavements and sidewalks on residential streets. A total of $408,180 is recommended to be programmed on the project to begin the design phase.
@ Citywide Sidewalk Improvements Phase XI: The project is a part of the City's 5-Year Capital Improvement Program to repair road pavements and sidewalks on residential streets. It is recommended that $400,000 be programmed for the design and construction phases. Design and construction are scheduled to be completed in FY 2026/27. The streets to be included in the project will be selected during the design phase.

ATT ACHMENTS: A.

B.

C.

D.

Proposed Resolution
Proposed Local Streets and Roads Funding Program Project List FY 2026/27 SB-l Revenue Projections
Senate Bill No.l (Available for review in the City Clerk's office) 2 171
Attachment A
Agenda Bill 6/09/26
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SOUTH GATE, CALIFORNIA, ADOPTING THE LOCAL

STREETS AND ROADS FUNDING PROGRAM PROJECT
LIST FOR FISCAL YEAR 2026/27 TO PROGRAM SENATE
BILL 1 FUNDS, IN COMPLIANCE WITH ITS

REQUIREMENTS
WHEREAS, Senate Bill 1 (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 transponation funding shortfalls statewide; WHEREAS, SB I includes accountability and transparency provisions that will ensure the residents of the City are aware of the projects proposed for funding in our comtnunity and which projects have been completed each fiscal year; WHEREAS, the City must adopt by resolution the Local Streets and Roads Funding Program Project List to receive Fiscal Year 2026/27 fiinding 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;
WHEREAS, the City, will receive an estimated $2,608,180 in RMRA funding in Fiscal Year 2026/27 from SB 1;
WHEREAS, SB l funding enables 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;
WHEREAS, SB 1 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; WHEREAS, the Public Works Department has prepared the Local Streets and Roads Funding Program Project List consistent with the City's 5-Year Capital Improvement Program and the Pavement Management System to ensure revenues are being prioritized according to established planning documents in a manner that also meets priorities for transportation investment;
WHERF,AS, the SB l Local Streets and Roads Funding Program Project List represents an investment in the City's local streets and roads infrastructure Page l of 5
172
e with a focus on basic maintenance and safety within residential neighborhoods by repairing road pavement and sidewalks.

NOW, THEREFORE, 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.

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 2026/27 Road Maintenance and Rehabilitation Account revenues:

173
Project Title Description Location SB 1
Budget
Est. Project Schedule Est. Useful
Life
Annual Sidewalk
Grinding Program
The project will fund
construction to grind
displaced sidewalks
to improve safety for
ADA
Selected sidewalk grinding and
ADA improvement locations within
residential areas generally bounded
by Firestone Blvd, Southern Ave,
Tweedy Blvd, Long Beach Blvd,
Atlantic Ave, Santa Fe Ave,
California Ave, Independence Ave,
the railroad corridor, and the north
and south City limits. Final
locations may be adjusted based on
ADA needs, field conditions, and
available funding.
$350,000
Complete Construction
June 2027 10 Years
Citywide Residential
Resurfacing, Phase V
This project will fund
construction to
rehabilitate streets &
repairs sidewalks for
ADA
Selected residential street
resurfacing and related sidewalk
repair locations within residential
areas generally bounded by
Firestone Blvd, Southern Ave,
Tweedy Blvd, Long Beach Blvd,
Atlantic Ave, Santa Fe Ave,
California Ave, Independence Ave,
the railroad corridor, and the north
and south City limits. Final street
limits may be refined during design
and construction based on field
conditions, utility conflicts,
pavement conditions, and available
funding.
$1,450,000
Complete Consti'uction March
2027
20 Years
J1

174
Citywide Residential
Resuifacing, Phase VI
This project will fi_ind
design for the
rehabilitation of
streets & repairs
sidewalks for ADA

CITYWIDE
$408,180
Complete Design
March 2027
20 Years
Citywide Sidewalk
Improvements, Phase XI
This project will fund
construction to repair
sidewalks for ADA
Selected sidewalk repair and ADA
improvement locations within
residential areas generally bounded
by Firestone Blvd, Southern Ave,
Tweedy Blvd, Long Beach Blvd,
Atlantic Ave, Santa Fe Ave,
California Ave, Independence Ave,
the railroad corridor, and the north
and south City limits. Final
locations may be adjusted based on
ADA needs, field conditions, utility
conflicts, and available funding.
$400,000
Complete Construction
June 2027
15 Years
[Remainder of page left intentionally blank]

175
SECTION 3. The City Clerk shall attest to and certify the passage and adoption of the Resolution which shall be effective upon its adoption.

PASSED, APPROVED and ADOPTED this 9'h day of June 2026.

CITY OF-SOUTH GATE:

B)7:

Joshua Barron, Mayor
ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
B"yPR0"o,,i'r9
Raul F. Salinas, City Attorney

1 176
Attachment B
Agenda Bill 6/09/26
CaliforniaCityFinance.com upaateaianuaryzs,2026
Shared Revenue Estimates: State Revenue Allocations to Cities and Counties Local Streets and Roads Estimates: 2025-26, 2026-27 Including Highway Users Tax Account (HUTA) and
Road Maintenance and Rehabilitation Account (RMRA) The state of California imposes per-gallon excise taxes on gasoline and diesel fuel, sales taxes on gasoline and diesel fuel and registration taxes on motor vehicles with allocations dedicated to transportation purposes.l The local (city and county) portions of these allocations flow through the Highway Users Tax Account (HUTA), the familiar gasoline tax revenues that have been in place for decades, and the Road Maintenance and Rehabilitation Account (RMRA) which allocates much of the revenue from the Road Repair and Accountability Act of 2017 (SBI Beall).

State taxes transferred to and allocated through the state Highway Users Tax Account (HUTA) include:
* The per gallon "gasoline tax" and "diesel fuel tax" imposed on the use of vehicle fuels. * The"usefueltax,"imposedonvendorsandusersofmotorvehiclefuelsthatarenottaxedundereither the gasoline or diesel fuel tax, such asliquefied petroleum gas, ethanol, methanol and natural gas (both liquid and gaseous) for use on state highways. Use Fuel Tax rates vary depending on the type of fuel. * Variable rate per gallon gasoline diesel fuel excise taxes imposed in 2010-11 in a complicated arrangement known as the "fuel tax swap." This rate replaced the previous Proposition 42 sales tax on gasoline.

Transportation taxes allocated to cities and counties through the Road Maintenance and Rehabilitation Account (RMRA) established by the Road Repair and Accountability Act of 2017 (SBI Beall) include:
* An additional 12 cent per gallon increase to the gasoline excise tax effective November 1, 2017 with annual inflation adjustments beginningJuly 1, 2020. @ An additional 20 cent per gallon increase to the diesel fuel excise tax effective November 1, 2017 with half of the revenues going to the state Trade Corridor Enhancement Account (TCEA) and half to the RMRA. Annual inflation adjustments beginningJuly 1, 2020. * An additional vehicle registration tax called the "Transportation Improvement Fee" with rates based on the value of the motor vehicle effective January 1, 2018 with annual inflation adjustments beginning July 1, 2020.
* An additional SIOO vehicle registration tax on zero emissions vehicles of model year 2020 or later effectiveJuly 1, 2020 with annual inflation adjustments beginning July 1, 2021.

The Road Repair and Accountability Act of 2017 (SBI Beall) also adopted annual inflationary adjustments beginning July 1, 2020 to all per-gallon motor vehicle fuel excise taxes including the rates allocated through the Highway Users Tax Account (HUTA).
' Taxes on aiicraft iet fuel ate ttansfetted to the state Aetonautics Account. 2 2 1 7 I s le R o g a le L o K e D o vis, C A g S & j & - (o b 1 & Te ( S 3 0. 7 S 8. 3 g S 2 177

Highway Users Tax Account (HUTA)
Revenue Allocations - Streets & Highways Code Sec 2103-2108 IIHUTA" Cities and counties receive revenue from the motor vehicle fuel taxes imposed pursuant to Revenue and Taxation Code Section 7360(a) and (b) through the Highway User Tax Account under the following formulas outlined in the Streets and Highways code and illustrated in Figure 1.

Section 2104. Section 2104 allocates funds to counties with designated allotments for engineering and administration, snow removal, heavy rainfall / storm damage as well as county streets, roads and public mass transit guideways and facilities.

Section 2105. Section 2105(a) allocates 11.5 percent of the tax revenues in excess of 9 cents per gallon (i.e. the Proposition 111 rate) monthly among counties based on population.

Section 2105(b) allocates 11.5 percent of the tax revenues in excess of 9 cents per gallon (i.e. the Proposition 111 rate) monthly among cities based on population.

Section 2106. Revenues equal to 1.04 cents per gallon are allocated as follows:
a. S7.2 million per year to the State Bicycle Transportation Account. b. S400 per month to each city (S2,313,600 per year among the 482 eligible cities2) C. S800 per month to each county (!>556,800 per year among the 58 counties) d. The residual amount to each county and the cities in that county based on registered vehicles. In each county, from this amount, the county receives an allotment based on the share of assessed value of the county which is in the unincorporated area. The remainder is allocated to the cities within the county based on population.

Streets & Highways Code Section 2'l06
Revenues equal to 1.04 cents per gallon
are alloca'.ed as follows:

7.2 miUion /year
$0,600/county/yr =
$5561800 $4,800/t.ity/yr
471(14(y,) 42.3mlllion s
Str&Hwys §21d6(b)'
Remaiiider by
by numbeir
registeredvehicles
Slr&Hwys
§2106(C)(1
County share =
unincorporated AV
percentoftotal AV
Str&Hwys 42106(c)(2)
Remainder among
cities within each
sctor&uHntywbgyp2olpOu61(aCt)io(3n)1
2 The city of Rolling Hills has only private streets and is therefor not eligible to receive these allocations.

C a liFo vvsia Citg Fivs a vsc e. c 0 Wl
178

Section 2107. This section provides monthly allocations to cities of 1.315 cents per gallon of gasoline, 1.8 cents per gallon of diesel, and 2.59 cents per liquefied petroleum gas (LPG), as follows. a. Each city with snow removal costs in excess of 55,000 is allocated 50 percent of the cost exceeding 5s,ooo.
b. The remainder is allocated to cities based on population.

Section 2107.5. These funds (about 52.7 million per year) are allocated to cities annually in July based on population as follows:
3oo,-oodo-to,so4',ooO ':: $ -IG,-000- 1
'.50-:7jQ-Q-j!Cl 9Q.QQ-9 ', $-7,500 (
.25,5)00.tp49,999 ; $ s,ooo3
.20,000 to 24,999 $ 5,000 I
lip':oo-j-§j3-g-7-4)-::-:i-H-3,-o;-: I
iO,00Q-t5l4,g99 . -$ 3.,000 i
j5,000 tO 9,999 :' $ 2,000 i
fless tt'ian 5,0(jO " $ -1,-O00 ' - l
Section 2107.5 funds must be used for engineering costs and administrative expenses related to city streets. Cities with populations under 10,000 may also expend the moneys for street construction or acquisition of street rights-of-way.

Section 2103 HUTA and the 2010 Gasoline Sales Tax - Excise Tax Swap In March 2010 as a part of a special budget session called by Governor Schwarzenegger, the Legislature enacted a swap of state sales taxes on gasoline for a gasoline excise tax. Intended to be "revenue neutral," the fuel tax swap provided the Legislature with greater flexibility in the use of funds, in particular relieving the general fund from the cost of state transportation debt service payments. The fuel tax swap:

1. Repealed the state sales tax on gasoline (local rates including the Bradley Burns are NOT affected);

2. Increased the excise tax on gasoline by 17.322 cents and added an annual adjustment mechanism intended to ensure the new excise tax provides, over time, the same amount of revenues expected from the sales tax on gas (no more, no less);

3. Increased the sales tax on diesel by 1.75 percent and allocated 75 percent to local transit agencies and 25 percent to state transit programs. The excise tax on diesel was reduced from 18 cents to 13.6 cents.

Sales tax revenues from diesel must go to transit funding.

4. Provided for a specific allocation of the funds among state and local transportation needs.

Revenues from the new Section 2103 excise tax rate are now allocated as follows:

1. State transportation debt service;

2. Remainder allocated:
a. 44 percent to the State Transportation Improvement Program (STIP); b. 12 percent State Highway Operation and Protection Program (SHOPP); c. 44 percent evenly split between cities and counties using current HUTA formulas.

Section 2103 funds are allocated to cities on a per capita basis and to counties 75 percent based on the proportion of registered vehicles and 25 percent based on the proportion of maintained county road miles.

C zi liPo vhia Citg Fivs a )1 c e. c o m
lO 179

The law included expressed legislative intent to fully replace the local streets and road funds cities and counties would have received under Proposition 42 state sales tax on gasoline with allocations from the new higher motor vehicle excise tax (HUTA) rate.

However, the swap created certain revenue effects related to the timing and receipt of revenues. In particular, the law provided that the new excise tax rate be adjusted annually by the BOE to garner an amount of revenues equal to what Prop42 would have provided in the prior year. Thus, the annual Sec 2103 funds were always "looking backward." If the Section 2103 amounts generated less than Prop42 would have, the difference was made up until the following year.

In the years following the swap, there were a number of snafus and changes in interpretation of the Section 2103 allocation. In FY2011-12 SCO allocated more money to cities and counties and did not fully backfill state transportation programs for weight fees that were used for debt service and loans that those funds would have otherwise received. This was contrary to the Legislature's intention, but the statute was not clear. The statute was clarified in the 2013 budget to clarify the original intent of the weight fee swap to fully backfill state transportation funds. [Streets & Highways Code 2103 (a)(l)(D)].

Changes to HUTA Allocated Rates, Including the Variable Rate by the Road Repair and Accountability Act of 2017 (SBI Beall)
In addition to increasing various fuel and motor vehicle registration taxes, the Road Repair and Accountability Act of 2017 (SBI Beall) removed BOE's discretionary rate setting role over the Section 2103 variable rate and reset the variable rate at 17.3 cents per gallon on July 1, 2019, up from the current 11.7 cents. This adjustment more than doubled Section 2103 revenue allocations for FY2019-20 over the prior year.

With regard to diesel fuel taxes, SBI also eliminated the price-based adjustment mechanism applied to the diesel fuel tax rate.

Since 2020, gasoline and diesel fuel excise tax rates are increased on July 1 by the change in the California Consumer Price Index from the prior year. These include the 18 cent per gallon base rate, the 17.3 percent per gallon rate, the diesel fuel excise tax rate and vehicle registration taxes.

Streets & Highways Code Section 2103 Variable Gas Tax Allocations to Cities and Counties 5900
o S800
S700
6600
g500
S400
S300
S200
6100
SO -m-mti
FYIO-11 FYII-12 FY12-13 FY13-14 FY14-15 Pfl5-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 FY2S-26eFY26-27e C a (iFo r+iia C itg Fivs a vsc e. c o m
180

CaliforniaGas61ine Excise Tax Ratei - Per Gallon'
Effective Dnte ' Base Rate Sec2403 gm Rati Total
July i20l5 $ 0.180 $ 0.120 $ 0.300 C-a!ifornia ['iesel'Excisoe-.Tax-Kates" - Effe_aive Date Ba_ !_i- _a_ _
July 1, 2017 $ 0.160 $ 0.160
Nov 4, 2017" $ 0.160 $ 0.200 $ 0.360
July 1, 2019 $ 0.160 $ 0.200 $ 0.360
July 1, 2020 $ 0.171 $ 0.214 $ 0.385
July 1, 2021 $ 0.173 $ 0.2'l6 $ 0.389
July 1, 2022 $ 0.182 $ 0.228 $ 0.410'
July i2023 $ 0.196 $ 0.245 $ 0.441
July 1, 2024 $ 0.202 $ 0.252 $ O'.454
July 4, 2025 $ 0.207 $ 0.259 $ 0.466
July 1, 2026e $ 0.214 $ 0.268 $ 0.482
July 1, 2016 $ 0.180 $ 0.098 $ 0.278
July 12017 $ 0. I 80 $ 0.117 $ 0.297
Novl 2017" $ 0. I 80 $ 0.117 $ 0.120 $ 0.417
July 1, 2019 $ 0.180 $ 0.173 $ 0.120 $ 0.473
July 12020 $ 0.192 $ 0.185 $ 0.128 $ 0.505
July 1, 2021 $ 0. 194 $ 0."l87 $ 0.i30 $ 0.511
July 1, 2022 $ 0.205 $ 0.197 $ 0.137 $ 0.539
July 1, 2023 $ 0.220 $ 0.212 $ 0.147 $ 0.579
July 1, 2024 $ 0.227 $ 0.218 $ 0.15i $ 0.596
July 1, 2025 $ 0.233 $ 0.224 $ 0. 155 $ 0.6al2
July 1, 2026e $ 0.241 $ 0.232 $ 0.161 $ 0.634
Use of Funds: HUTA
The use of local Motor Vehicle Fuel Tax funds is restricted by Article XIX of the California State Constitution and by Streets and Highways Code Section 2101. All Motor Vehicle Fuel Tax funds allocated from the Highway Users Tax Account must be expended for the following:
(a) 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 such purposes, and the administrative costs necessarily incurred in the foregoing purposes. (b) The research and planning for exclusive public mass transit guideways (and their related fixed facilities), the payment for property taken or damaged for such purposes, and the administrative costs necessarily incurred in the foregoing purposes.
(c) The construction and improvement of exclusive public mass transit guideways (and their related fixed facilities), including the mitigation of their environmental effects, the payment for property taken or damaged for such purposes, the administrative costs necessarily incurred in the foregoing purposes, and the maintenance of the structures and the immediate right-of-way for the public mass transit guideways. (d) The payment of principal and interest on voter-approved bonds issued for the purposes specified above.

C a liFo vvsia Citg Fivs a +i c e. c o m
181

Allocation of Gasoline Excise Tax Revenues
rates effecive July 1, 2025
Rev&Tax §7360(c)
% sag ffiffl fflffl ass ass ffill fflffll fflffl fflffl fflffl fflffl / (i) The 4.399! local share of diesel fuel lax is allocatsd 1.F%! (o counties and 2.599! to cities. (ii) Str&Hwy Code §2106 funds are distributed based on registered whicles, assessed property wluation, and popuhition.
(iii)A porlion of funds in Stale Highway Account is allocated among counties and cities for Regional Transportation Improvement Programs.
0v) County apportionments are based on numbers oT registered vehk.les and county road mileage. (v) City apportionments are based on population.
(vi) Beginning July 1, 2020 and annualhl lhereaffer, these rates are subject to an annual cost-of-lmng adjushnent.

C pH Fo vviia Cit g Fivs a h c e. c o m
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Three Year State General Fund TCRF Loan Repayment Funds SBI stipulated the repayment of S706 million by the state General Fund to transportation funds over three fiscal years: 2017-18, 2018-19, and 2019-20. Under SBI, 575 million was allocated to local streets and roads from repayments of Transportation Congestion Relief Funds (TCRF) in each of these three years. These funds were allocated half to cities and half to counties with the city funds allocated among cities on a per capita basis, the county funds allocated among counties based on numbers of registered vehicles and county road mileage.

These TCRF revenues may be deposited in local HUTA funds." However, these TCRF funds carried slightly different use requirements than HUTA funds. TCRF funds could be expended only for street and highway maintenance, rehabilitation, reconstruction or storm damage repair. For these purposes, * "Maintenance" means patching and/or overlay and sealing. "Reconstruction" includes any overlay, sealing or widening of the roadway, if the widening is necessary to bring the roadway width to the state minimum standards, but does not include widening for the purpose of traffic capacity.
* "Storm damage repair" is repair or reconstruction of local streets and highways and related drainage improvements that have been damaged due to winter storms and flooding, and construction of drainage improvements to mitigate future roadway flooding and damage problems, in those jurisdictions that have been declared disaster areas by the President of the United States.

Road Maintenance and Rehabilitation Account (RMRA) Revenue Allocations - Streets & Highways Code Sec 2031 IIRMRA" The Road Repair and Accountability Act of 2017 (SBI Beall) represented a significant additional investment in California"s transportation systems of over 55 billion per year. The Act increased per gallon fuel excise taxes, diesel fuel sales taxes and vehicle registration taxes, stabilized the problematic price-based fuel tax rates and provided for inflationary adjustments to rates in future years. The Act is more than doubling local streets and road funds allocated through the Highway Users Tax Account (HUTA) and through the Road Maintenance and Rehabilitation Account (RMRA) which it established.

The RMRA receives funds" from the following new taxes imposed under the Road Repair and Accountability Act Of 2017:
* A 12 cent per gallon increase to the gasoline excise tax effective November 1, 2017. * A 20 cent per gallon increase to the diesel fuel excise tax effective November 1, 2017, half of which will be allocated to Trade Corridors Enhancement Account (TCEA) with the remaining half to the RMRA. * A new vehicle registration tax called the "transportation improvement fee," effective January 1, 2018, based on the market value of the vehicle.
* An additional new 5100 vehicle registration tax on zero emission vehicles model year 2020 and later effective July 1, 2020.
3 Note that the "loan repayment" is between the state general fund and state transportation funds. From an accounting standpoint this is NOT a debt repayment to local agencies, it is siniply revenue. 4 In addition, funds from a 4 percent increase in the diesel sales tax to 5.75 percent from the prioi:1.75 percent effective Novem):ier 1, 2017 ate allocated to the Public Ttanspoi'tation Account.

C a liFo vvsia Citg Fivs a vsc e. c o m
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* Annual rate increases to these taxes every July 1 (January 1 for the registration fees) for the change in the California Consumer Price Index. The first adjustment made on July 1, 2020 covered CPI change for two years: November 1, 2017 through November 12, 2019. ---SBI-Tr-ansporta-tioriTmprove- me-nt Fe-e -= - ' --' --- - - - " - - -' - ' - ' --- --- __-gg______alu3____________' i J3 ' . ,_02_5 4a7
0 - $4,999 $ 25 $ 27 $ 27 $ 28 $ 29 $ 32 $ 3-2 "-$-33
$5,000 - $24,999 $ 52 $ 54 $ 55 $ 56 $ 59 $ 65 $ 65 $ 66 $25,000-$34,999 $ 105 $ 107 $ 110 $112 $118 $129 $129 $132 $35,000 - $59,999 $ 157 $ 161 $ 165 $168 $177 $194 $194 $198 $60,000 & owr $ 183 $ 188 $ 192 $196 $ 206 $ 227 $ 227 $ 231 SBI Road Improye,menfFee 4RIE),
J:an2020 ,an202l
ZEVwhicle" $ 100 S 101
Jan 2022
$ 103
Ja6 2023 Jan 2024
$ 108 $ 118
Jan 2025 Jan2026
$ 118 $ 121
'Zero Emission Vehicles, 2020 or later models.

Road Maintenance and Rehabilitation
Account Revenues
Trade
Corridor
Enhancement
Account
(TCEA)
remainder
Road
Maintenance
& Rehabilitation
Account
(RMRA)
9350 m/yr
transit
250
congested
corridors
Public
Transportation
Account
State
Highway
Account
" adjusted for inflation annually beginning 7/1/2020
" effective 7/1/2020 adjusted for inflation annually beginning 7/1/2021 C a (iF o rvsia Cit g Fivs a n c e. c o m
184

The Road Repair and Accountability Act directs the State Controller to allocate, on a monthly basis, fifty percent of the revenues in the RMRA to the State Highway Operation and Protection Program (SHOP) in the State Highway Account and half to cities and counties. But there are a series of specific program allocations, subject to appropriation in the annual state budget, to be taken out first:

1. Administrative costs.

2. 5200 million for the State-Local-Partnership Program for existing and aspiring self-help jurisdictions.

3. SIOO million annually for the Active Transportation Program for the purpose of encouraging increased use of active modes of transportation, such as biking and walking.

4. S400 million for state bridge and culvert maintenance and rehabilitation.

5. S25 million for the state's Freeway Service Patrol program.

6. S5 million for five years through FY 2021-22 for pre-apprenticeship training programs of the California Workforce Development Board.

7. S25 million for local planning grants to encourage local and regional planning.

8. 57millionfortransportationresearchandtransportation-relatedworkforceeducation,training,and development including S5 million to the University of California and !>2 million to the California State University.

Allocation of Road Maintenance and
Rehabilitation Account Revenues
§State spending
§Local spending
State Budget
S)r&Hwys §2031.5
$200 million
Str&Hwys §2032(a)
$100million
Str&Hwys §2032(b)
$400 million
Str&Hwys §2032(c)
$25 million
Str&Hwys §2032(d)
$25 million
Str&Hwys §2032(f)
$5 million
Slr&Hwys §2032(e)
$7 million
Str&Hwys §2032(g)
Ren'iainder to...

Str&Hwys §2032(h)
(i) County apporlionmenls are based on numbers ofregistered vehicles and coun!y road mileage. (ii) City apporiionments are based on population.

C a HFo rnia Citg Fin a vsc e. c o m
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USe Of FundS: RMRA [Streets and Highways Code Section 2030] The use of RMRA local streets and roads funds is similar but, not identical, to HUTA use rules. Pursuant to Streets and Highways Code Section 2030, RMRA local streets and roads allocations must be used for projects "that include, but are not limited to," the following
Road maintenance and rehabilitation
* Safety projects
* Railroad grade separations
* Traffic control devices
* Complete street components, "including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and storm-water capture projects in conjunction with any other allowable project."
RMRA funds may also be used to satisfy a match requirement for projects eligible for state or federal funds.

SBI also contains non-obligatory intent language regarding the use of funds. "To the extent possible and cost effective," cities and counties are to use a use:
* advanced recycling techniques that reduce greenhouse gas emissions; * automotive technologies, ZEV fueling, infrastructure-to-vehicle; * communications autonomous vehicle systems;
* resiliency re climate change, fires, floods, sea level rise; and * complete street elements, access for bicycles, pedestrians.

If a city or county has an average Pavement Condition Index that meets or exceeds 80, the city or county may spend its RMRA funds on transportation priorities other than these. [Streets and Highways Code Sec 2037] Maintenance of Effort: RMRA [Streets and Highways Code Sec 2036] The Road Repair and Accountability Act contains a local agency maintenance of effort (MOE) requirement that applies to funds allocated through the RMRA. The Act states that the MOE requirement is to ensure that these new roads funds do not supplant existing levels of city and county general revenue spending on streets and roads. The MOE for the receipt of RMRA funds state that a city or county must maintain general fund spending for street, road, and highway purposes at no less than average of 2009-10, 2010-11, and 2011-12 years. In making this calculation an agency may exclude one-time funds. A city or county that fails to comply in a particular year may make it up with in additional expenditures in the following year.

The Act provides that the State Controller may perform audits to ensure compliance with these MOE rules. If the State Controller determines that a city or county has not met its MOE, the agency will be required to reimburse the state for the funds it received during that fiscal year. However, a city or county that fails to comply in a particular fiscal year may expend during that fiscal year and the following fiscal year a total amount that is sufficient to comply. Any funds withheld or returned as a result of a failure to comply will be reapportioned to the other counties and cities whose expenditures are in compliance.

For further guidance, see the State Controller's "Guidelines Relating to Gas Tax Expenditures for Cities and Counties."
C Zl (iFo vvsia C itg Fin a nc e. c o m
186

Spending Plans and RepOrtS: RMRA [Streets and Highways Code Sec 2034] The Road Repair and Accountability Act stipulates that, prior to receiving RMRA funds in a fiscal year, a city or county must submit to the California Transportation Commission (CTC) a project list pursuant to an adopted budget. The list must include for each project: description, location, schedule, useful life. [Streets and Highways Code Sec 2034(a)]
The Road Repair and Accountability Act also requires that a city or county submit to the CTC an annual report of project completion in orderto receive RMRAfunds. The report mustinclude descriptions of all projects forwhich RMRA funds were expended including: description, location, funds expended, completion date, estimated useful life of the project.

Budgeting and Accounting for RMRA Funds: The "60 Day Delay The allocation of Road Maintenance and Rehabilitation Account (RMRA) revenues to cities and counties takes many weeks. It takes the State Controller"s Office roughly 30 to 60 days from the time of revenue collection by the state, through the various statutory set asides to distribute the funds to cities and counties in monthly allocations. Consequently, the estimates shown in this report are for revenues collected for July through June are not received on a cash basis by local agencies until September through August. That is, for example, the FY2022-23 figure for your agency is revenues collected in and for July 2022 through June 2023 but distributed in monthly allocations September 2022 through August 2023. Cities and counties thus have two choices in the budgeting and accounting of RMRA revenues:
1) apply a 60 day accrual policy to RMRA funds (recommended}; or 2) adjust RMRA budgets (especially in FY2017-18) to reflect a distributed cash basis.

Local Streets and Roads (HUTA and RMRA) Revenue Estimates for FY2025-26 and FY2026-27
We have computed revenue estimates for each city and county using a model reflecting the local allocation formulas, latest population figures used by the State Controller for allocations and estimates by the state Department of Finance (DOF) of statewide HUTA and RMRA tax revenues provided with the Governor's Proposed 2026-27 Budget (released January 10, 2025) and analyses of SBI(Beall), The Road Repair and Accountability Act of 2017. Compared to their May 2025 projections for 2025-26, DOF statewide revenue estimates show a slight (1.6 percent) downward revision in their RMRA estimate and a slight (1.8 percent) upward revision in HUTA estimate for a very slight O.2 percent overall higher LSR estimate for this year.

Fuel consumption was sharply down during the height of the COVID-19 pandemic but has largely recovered to its prior, slightly declining trajectory. Recently, fuel prices have increased steeply but the price of fuel no longer has a direct effect on local streets and roads revenues because all rates are per gallon, regardless of price.

Despite lower fuel consumption, scheduled rate increases stipulated in SBI have kept local allocations of revenue growing at a modest pace but this growth is expected to flatten in a few years. Gas tax revenue collections are forecast to increase 2 percent in 2025-26 and again in 2026-27 but to to zero growth by FY 2030-31.

On the other hand, vehicle registration tax revenues from the SBI vehicle registration tax ("Transportation Improvement Fee") and the zero emission vehicle registration tax ("Road Improvement Fee") are forecast to increase by about 6 percent in 2025-26 and again in 2026-27 and sustain this pace of growth over the five year forecast period.

C a (iPo vvsia C itg Fivs ZI It c e. c o m
187

Total LSR allocations (including HUTA, TCRF, and RMRA) were up 8.1 percent in 2024-25 from the prior year.

But as fuel consumption gradually declines, revenue growth will soften. The Department of Finance projects total LSR allocations to cities and counties in 2025-26 will increase by just 1.9 percent. For the budget year FY2026-27, DOF estimates total statewide local streets and roads allocations will grow by 6.0 percent.

HUTA (Highway Users Tax Account)
HUTA revenues are allocated to cities and counties pursuant to Sections 2103-2107 of the Streets and Highways Code. The per gallon excise tax rates that provide HUTA revenues are adjusted annually on July 1 as described above. Revenue changes depend on the combined effects of 1) these rate adjustments, 2) taxable gallonage, and 3) the relative change of statutory transfers including the "weight fee offset" that pays state transportation bond debt.

Sec2103-2108 HUTA allocations (not including RMRA) grew 2.6 percent in FY2024-25. But HUTA revenue growth is now flattening and will continue to decline. DOF estimates 1.4 percent HUTA growth in current year FY2025-26, leveling off to 1.8 percent growth in budget year FY2026-27.

Gasoline
18,ODD 3,500
14000
14,000
12,000
14000
- 2.9%
2,500
2Q1
8,000 1,500
0,000
1,000
4QO
fflO
500
2017-18 2018.19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 202849 2029-30 2030-31 Actual Actua! Actual Actual Actual Actual Actual Actual >>>>>>b> >>>>>>>> >>>>>>>> >>>>>>>> >>x>>>>> >>>>>>>> RMRA (Road Maintenance and Rehabilitation Account)s The Road Repair and Accountability Act (SBI) taxes that provide funding to cities and counties through the RMRA began on November 1, 2017 when the new per-gallon fuel excise taxes took effect. It also includes allocations from the SBI vehicle registration tax ("Transportation Improvement Fee") and the zero emission vehicle registration tax ("Road Improvement Fee") which are expected to grow more robustly and are not included in the HUTA allocations. Additionally, various fixed-amount statutory allocations are made from the SBI tax rates prior to the city and county allocations. 5 Note that RMRA revenues are delayed 60 days from collection to allocation. Tliat is, tlie revenues for a July 1 to June 30 fiscal )tear are allocated September 1 through August 31. These are spendable in the fiscal year because yout accorinting staff "accrues" them back into yout fiscal yeat.

C a liPo vhia Cit g Fih a vs c e. c o m
lq 188

Because of this, city and county RMRA revenues are expected'to grow more robustly. DOF estimates 2025-26 revenue will be 1.9 percent higher than 2024-25 actuals and that 2026-27 revenues will grow by 6.0 percent over the current year.

California Local Streets and Roads Program - State Funds to Cities and Counties 4,500
-...... :i-" !!W
I
I
Jll "a!'
I
I
11111
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17 z
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' Wm I I't!Wlif-! Ill@. ils II_it"Nl
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4,000
3,500
3,000
2,500
2,000
1,500
5(XI
R.M.R.A.

H.U.T.A.

J103
cities,
counti e
J2104
counties
J2105
cities,
counties
§2106
-4'>q nz
FY12-13F/13-14F{14-13FY15-16FY16-17F{17-laFVl8-19F419-20F{20-21F{21-22F/22-23FV23-24FY24-25F'/25-26FV26-27F/27-28FY28-29F/28-3aF{30-31 cities esti m. proj ected > > > > > > > > > > > > > > > > > > > > Looking Ahead: Long Term Estimates of Local Streets and Roads Funding Since the recovery following the COVID-19 pandemic of 2020, we have seen modest year over year growth in local streets and roads revenues. In future years, as alternative fuel vehicles come more into use, fuel consumption will continue to decline. The SBI annual cost of living adjustments will help to maintain revenues but we will see decline in revenue growth to below the rate ofinflation.

Due to complicated statutory transfers from these revenues before the city and county allocations are made (including the 51.35 billion transfer for state transportation debt service), actual growth in funding allocated to cities and counties varies somewhat among the various categories of local streets and roads allocations and will not exactly mirror total tax collections. Taking all these factors into account, for the purposes of long-term transportation program planning, we estimate transportation allocations to cities and counties will increase in outyears at the following growth rates:

HUTA 2103
Estimated Annual Revenue Growth Rate over prior year 2025-26 2026-27 2027-28 2028-29

1.6% 2.0% -0.9% -0.2%

3.5% 1.7% 1.O% 1.O%

1.7% 1.O% 1.O%

1.7% 1.O% 1.O%

1.7% 1.O% 1.O%
2029-30
-1.6%

0.5%

0.5%

0.5%

0.5%

5.3%
1 .4%

0.8%
-1.1%HUTA 2107
HUTA 2106
HUTA 2105
HUTA 2104
RMRA 1.9% 6.0% 4.7% 4.9%
2030-31
-1.2%

0.1 %
O.1%
O.1%

0.1%

5.2%
C a HFo v vsia Cit g Fivs a n c e. c o m
'10 189

Your M4eap Revenues May Vary
Long-term, in addition to the growth in statewide local streets and roads revenue collections, the allocations to each particular city will be primarily related to changes in the city's population relative to the change in state population in cities. The current forecast for California population, provided by the Demographics Unit of the California Department of Finance is as follows:6
California
Population
...... in Cities
percent change
-2022 -2023 -2024 -2025 -2026 -2027 § 2029 -2030 -203-1 39,185,605 38,990,487 38,991,721 39,024,054 39,068,081 39,131,779 39,213,804 39,323,647 39,430,871 39,532,028 32,713,003 33,118,970 33,120,018'33,182,48,'33,219,919 33,274,082 33,343,828 33,437,229 33,528,402 33,614,417

1.24% O.OO% 0.19% 0.11 % 0.16% 0.21 % 0.28% 0.27% 0.26% § -2033 -2034 -2035 -2036 -2038 ! -2040
Population 39,626,155 39,719,558 39,800,683 39,872,787 39,936,372 39,99i277 40,037,385 40,076,005 40,106,449 Population in Cities 33,694,454 33,773,875 33,842,856 33,904,167 33,958,234 34,004,920 34,044,126 34,076,965 34,102,852 percen( change O.24% 0.24% 0.20% 0.18% 0.16% 0.14% 0.12% 0.10% 0.08% If you think your city's population growth will be significantly different from the statewide average in cities, then you should adjust accordingly. For example, the City of Buenavida"s planning department estimates the city will see average annual residential population growth of 1.5 percent annually over the next ten years. The city's estimated HUTA 2105 allocation for FY2026-27 is S381,200. The long term projection of Section 2105 revenue would be:

S381,200 X Sec2105 growth x Buenavida Population Growth # Statewide City Population Growth So, for 2027-28, the city would estimate S381,200 X 1.01 x 1.015 + 1.0016 = S390,185 And longterm...

City of Buena*da EXAMPLE
2026-27
HUTASec2015 $ 38i200
2105 growth
Buenavida pop
Cities pop
HUTA Sec2015 $
2027-28 2028-29 2029-30 2030-31 2031-32 2032-33

1.O% i.O% 0.5% O.I% O.O% O.O%

1.5% 1.5% 1.5% 1.5% 1.5% 1.5%

0.16% 0.2"l% 0.28% 0.27% 0.26% 0.24%
390,185 $ 399,277 $406,122 $411,349 $416,436 $421,671 Changes forin allocations to an individual county will be affected by many things including: the population of the county relative to the total population of the state, proportion of population in the unincorporated area of the county, as well as relative numbers of vehicle registrations, assessed values and maintained road miles.

Next Update
The next update to these revenue estimates will be in May 2026. 6 See http:/ /www.dof.ca.gov/Forecasting/Demographics/projections/. California population in cities estimated by author based on tecent histotic ttend of propottion of population iii cities.

C a HFo vhia Citg Fivs a vs c e. c o m
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ATT ACHMENTS:

A) Local Streets and Roads - Projected Individual City Revenues - FY2025-26 B) Local Streets and Roads - Projected Individual City Revenues - FY2026-27 C) Local Streets and Roads - Projected Individual County Revenues - FY2025-26 (from CSAC) D) Local Streets and Roads - Projected Individual County Revenues - FY2026-27 (from CSAC) C a liPo rhizi Citg Fivs a nc e. c 0 M
z"2,191

ATTACHMENT A
Local Streets and Roads - Projected FY2025-26 Revenues Based on State Dept of Finance statewide revenue projections tsttmateayanuary:zozs HighwayUsersTaxAcct UT rStreets&HighwaysCode Sec2103(3' Sec2l05(3' Sec2l06(3' Sec2l07'3' Sec2l07.5'4' TOTAL Road Mntnc ToTAL
HUTA Rehab Acct
ii li@

ALAMEDA
ALBANY
757,271 507,732 286,688 678,585 7,500
202,888 136,031 80,323 1E31,806 5,000
2,237,775 2,091,323
606,048 560,306
4,329,098
1,166,355
DUBLIN

EMERYVILLE
715,785
129,096
,+zg,giz
86,556
271,245
52,855
641 ,409
115,682
7,500
3,000
2,115,856 1,976,753
387,190 356,520
4,092,609
743,710

HAYWARD

LIVERMORE
1 1,936
841 ,057
1,053,945
563,909
589,941 1,408,600
3al7,877 753,665
10,000
7,500
4,634,421 4,341,149
2,484,008 2,322,713
8,975,571
4,806,721

OAKLAND

PIEDMONT
4,150,979 2,783,1:31
107,984 72,401
1,549,969 3,719,660
44,996 96,764
10,000
3,000
12,213,739 11,463,584
325,146 298,216
23,677,323
623,362

SAN LEANDRO

UNION CITY
i'ili
871 ,350
671 ,711
584,219
450,366
329,153
254,839
780,810
601,915
7,500
7,500
2,573,033 2,406,371
1,986,332 1 037
4,979,404
3,841 ,369
lo
AMADOR
IONE
1,917
86,604
1 ,285
58,066
5,736
47,094
1,718
77,605
1 ,000
2 ,000
1l ,655
271 ,369
5,293
239,171
16,948
!510,540

PLYMOUTH

SUITER CREEK
BIGGS
CHICO

GRIDLEY

OROVILLE
pAt2 Ar)ISE

ASIGE S CAMP
141W4ii'i "1;74!
as x *
COLUSA

WILLIAMS
10,752
25,338
18,908
1,091 ,028
70,207
19al,752
106,259
62,636
53,561
7,209
16,989
1213//
731 ,508
128,565
71 ,244
10,051
17,174
12,324
438,982
81,109
47,087
9,635 1,000
22,705 1,000
IS,943
977,662
1 ,000
10,000
171827
100,275
4,000
3,000
23,465 30,112 31,362 1,000
41,996
35,911
21,629
19,191
56;128
47,996
2,000
2,000
38,648
83,206
29,695
69,975
61,853 52,217
3,249,179 3,013,045
577,253
327,866
120,937
529,553
293,452
96,653
184,389
158,659
172,980
i47,917
68,342
153182
114,070
6,262,225
1106,806
621 ,318
217,590
357,370
306,576
15 January 2026
CaliPorvsioCitgFivsohce.co+w Page 1 of 16
192

ATTACHMENT A
Local Streets and Roads - Projected FY2025-26 Revenues Based on State Dept of Finance statewide revenue projections EStimated January 2026 HighWa7 USerS TaX ACCt UT Streets & HighWa7S COde TOTAL ROad MntnC TOTAL Sec2l03(3' Sec2l05(3' Sec2l06(3' Sec2107'3' Sec2l07.5'4' HUTA RehabAcct sots *
ANTIOCH 1,119,145 750,360 449,674 1,002,857 10,000 3,332,036 3,090,696 6,422,732 BRENTWOOD 630,072 422,448 255,261 564,603 7,500 1,879,884 1,740,043 3,619,927

CONCORD

DANVILLE
i,202,893 806,511 482,965 1,077,903 10,000 3,580,273 3,32al,980 418,473 280,576 171,148 374,991 6,000 1,251,188 1,155,680 6,902,253
2,406,868

HERCULES

LAFAYETTE
251,322
243,655
188,505
163,365
104,703
101,656
225,207
218,337
6,000
6,000
755,737
733,013
694,064
672,892
1 ,449,801
1 ,405,904
MORAGA
OAKLEY
165,820
448,747
111,178
300,874
70,715
183,182
148,590
402,118
4,000
6,000
500,302 457,937
1,340,921 1,239,285
958,239
2,580,206
PINOLE

PITTSBURG
181,459
731,913
121,664
490,730
76,932
295,745
162,604
655,862
4,000 546,660 501,129
7,500 2,IE!1,75al 2,021,295
1,047,789
4,203,045

RICHMOND

SAN PABLO
1;110,702
308,630
744,699
206,929
446,318
127,484
995,292
276,561
10,000
6,000
3,307,011 3,067,380
925,603 852,32G1
6,374,391
1,777,932

WALNUT CREEK
h so a

CRESCENT CITY
e*o**a

PLACERVILLE

SOUTH LAKE TAHOE
673,762
64,515
451,741
43,256
272,629
25,093
€303, /!)3
57,811
7,500
2,000
2,009,385 1,860,701
192,674 178,167
3,870,086
370,842
103,691
205,312
69,522
137,657
71,964 93,324
137,787 1,713,982
3,000
5,000
341 ,501
2,199,738
286,359
567,002
627,860
2,766,740
)jj, 15January2026
Co(iPorvsioCitgFivronce.co Page 2 of 16
193

ATT ACHMENT A
Local Streets and Roads - Projected FY2025-26 Revenues Based on State Dept of Finance sta::ewide revenue projections tstimatea yanuary 2026 Highway Users Tax Acct (HUTA)" Streets & Highways Code Sec2103(3'l Sec2l05(3'l Sec2l06'3'l Sec2l07(3'l Sec2l07.5'4' "!"Rl:!'a"!"a"" 1,237,403 829,649 423;16/ 1,108,82/ 10,000 C)/4L:NGA 172,863 115,901 63,245 454,9C11 4,000
TOTAL Road Mntnc TOTAL
HUTA Rehab Acct
3,609,046 3,417,283
510,910 477,389
7,026,329
988,300
FOWLER
FRESNO
73,475 49,263 29,642 65,840 2,000
5,338,194 3,579,1:31 1,809,649 4,783,514 20,000
220,221 202,913
15,530,488 14,742,266
423,133
30,272,754
KERMAN

KINGSBURG
168,043 112,669 61,615 150,582 4,000
127,.314 85,36al 47,845 114,085 3,000
496,909
377,605
464,077
351 ,597
960,986
729,202

ORANGE COVE

PARLIER

REEDLEY
SANGER

SAN JOA UIN
SELMA
93,121
140,385
254,944
:sg,ioa
35,439
236,832
62,435
94,125
170,934
173,722
23,761
158,790
36,284
52,264
90,997
92,403
16,782
84,873
83,445
125,798
228,453
232;180
31,757
212,223
2 ,000
3 ,000
6,000
6,000
1 ,000
5,000
277,285
415,573
751,328
763,409
108,738
697,718
257,168
387,697
704,068
715,554
97,870
654,048
534,453
803,270
1,455,396
1 ,478,963
2 06,609
1,351 ,765

FERNDALE

FORTUNA
TRI
ffloi @

BRAWLEY
ATRIA

EL CENTRO
HOLT\/ILLE
83,413
62,052
182,092
11 ,548
258,480
13,359
120,079
32,487
2,942
277,455
384,031
62,617
440,898
54,481
219,131
19,972
55,926
41 ,604
122,088
7,743
173
8,957
80,510
21,782
1,973
186,027
257,483
41 ,983
295,611
36,!)28
46,922
3,390
31,287
24,504
74,74B
55,604
2,000
2,000
247,372
185,764
82,526 163,171 4,000 553,877
9,729 10,348 1,000 40,368
11 , 32 231,622 6,000
io,bo:: 11,9/1 1,000 45',789
5ti,0!:i!:i ' "' i'U'7,'UO'Y-"""-"""""-""-""S:-t'?i0""""""""""""""""""""""j07:'2as 18,667 29,112 ,000 103,
6,056 2,636 1,000 14,607
114,209
156,234
29,492
1 /B,B!a9
2 6,283
9 ,2 0
12,675
248,625
344,127
56,ffl
39!),UtP)
48,BTU
196,362
17,896
6,000
6,000
2,000
6,000
2,000
5,000
1,000
832,3al6
1,147,876
192,203
1,316,254
168,112
625
,934
230,358
1:71,366
502,876
31 ,891
713,
36,893
331616
89,719
8,125
766,236
1 ,060,562
172,927
1 ,217,609
150,458
605,166
55,155
477,730
357,130
1 ,056,753
72,259
1 , ,3
82,683
698,861
92,767
2 2,732
i,598,552
2 ,208,437
3 65,130
2 ,533,863
318,570
,263,791
120,088
**
BISHOP 36,944 24,770 20,566 33,105 1,000 116,384 102,025 218,410 ta 15 January 2026
CdiForv+ioCitgFivsovyce.cow+ Page 3 of 16
194
An ACHMENT A
TOTAL Road Mntnc ToTAL
HUTA Rehab Acct
15 January 2026
ColiFovnioCitgFivrov'tce.covv Page 4 of 16
195

ATTACHMENT A
Local Streets and Roads Projected FY2025-26 Revenues Based on State Dept of Finance sta :ewide revenue projections Estimated January 2026 Highway Users Tax Acct (HUTA)(" Streets & Highways Code TOTAL HUTA
Road Mntnc
Rehab Acct
TOTAL
....................!,,,!!!_L(s..:l.................!!,!!!!!__!a).l.____...8_,,c2i06(:l)1 _ _ ,Q_ec2l07 .'3'l Sec2:107.5(4' COVINA
CU
4!:11,522 S!:l,tiZI Itl!d,!d;j!:l 44U,53!j
387, 259,809 150,728 347,236
649 353,106 203,130 47 ,926
/,5UU
6,000
1,45!:1,222 1,35/,b'j.j 2,Blti,!:114
1,151 1,070, 42 2,221,416
1, 3, 6,736

EL MONTE

GLENDALE

IRWINDALE

LAKEWOOD

LA PUENTE
LOMITA

LYNWOOD
1,045,996
583,670
1,877,346
33,648
6,
,039,
14,461
,184
788,637
,601
364,241
200:588
656,953
339,842
2,
1 70al,315
39al ,336
1,258,715
89,608
1,21
,222
9,696
36,329
528,762
1 ,14
2 44,215
204,
134,489
440,471
227,856
61,
90,
398,710
224,603
711,787
396,411
10,246
25,205
301,792
141,969
q q g,
80,339
,07 ,
252,2CIl
132,781
,486
203,919
937,309
,022
1 ,682,275
19,
931 ,839
12,959
48,554
706,691
,526,583
326,394
179,745
588,691
304,530
10,000
7,
10,000
3,000
,000
0 ,000
1 ,000
2 ,000
7,500
0,000
6,000
6,000
5,000
7,500
6,000
6,000
628,
3,093,330 2,888,683
, ,132 1,6 ,896
5,540,123 5;184,586
,1 369,09
21 I
3 , ,364
4 8,361
166,272
2,333,382
,028,
1,082,8i9
2 ,87
3 9,937
149,63
2,177,945
, ,762
1,005,910
,1
600,161 553,954
1 ,945,816
i,Oalal,009
1,
1 ,814,280
938,
,031
,308,01
5,982,013
,028
10,724,709
,240
, 88
88,298
31 ,909
4,511 ,328
733,526
2,088,729
, , 30
1,154,115
2 16 ,
3 ,760,096
t ,949,537
1,384,
MONTEREY PARK 585,414
PALOS VERt)ES ESTATES 127,956
1 7,706
PICORIVERA 595,428
,O
392,506
85,791
903,
399,220
23 , 9
225,260
615,
52,987
12,33
229,032
1 b24,ha!:i " 7:500
0 ,000
1 14,6t30 3,000
,20 ,669 0,000
!)33,!)!)!,) 7,500
1 :735:265
,38
384,394
3,981,3 1
1 ,764,739
i,016,713
353,371
3,721 ,904
1 ,644,370
3,351 ,978
9 737,765
7, ,2al
3,409,109
15 January 2026
ColifovviiaCitgFivsovrce.cowi

196

ATTACHMENT A
Local Streets and Roads Projected FY2025-26 Revenues gased on State Dept of Finance sta :ewide revenue oroiections Estimated January 2026 Highway Users Tax Acct (HUTA)" Streets & Highways Code TOTAL HUTA
Road Mntnc
Rehab Acct
TOTAL
-Sec2l03(3'l Sec2l05'3'l 5eczl04,_(3)..L............y,.!Eg3_4.7........(3).Lq!,,E:!!7_,L(4)... o

REDONDO BEACH
R A

ROSEMEAD

SAN GABRIEL
SANT

SANTA FE SPRINGS

SIERRA RE

SIGNAL HILL

SOUTH PASADENA
VERNON

WEST HOLLYWOOD
404,501
672,948
al,889
489,600
227,04
378,080
2,226,934
179,859
07,103
112,690
890,814
258,327
1, , 7
2,022
1,050,088
341 ,999
1,8'J1
271 ,208
451,195
,905
328,265
1 253,493
1, , 06
120,591
71,810
75,556
,269
173,202
943 1
1 ,356
704,059
229,302
564,468
157,130 362,4/0 ...4<5p 1,201,309 1,117,093
258,22!:i 603,023 7,500 1,992,890 1,858,451
35,639 a 2,000 247,813 226, 50
189,178 438,/2/ 7,5tjO 1,453,270 1,352,108
90,303 203, ,000 035
147,181 338,/94 6,000 1,123,548 1,044,127
438 1 0,000 , ,01 61 ,030
72,533 161,1/0 4,000 538,153 496,709
,134 95,9/4 3, 323,020 ,781
4/,238 100,980 3,000 339,464 :311,211
340,271 798,2!)1 7 2,634,1 2,460,123
ioz,us:s z:ii,<sb 6,000 771,097 713,411
,66/ 1,260,81/ 10,000 4,1 3
!:i,bb1 1812 1,000 11,751 5,584
400 1 940,9/B 10,000 3,1 ,374 :,sgg,
l:j3:5UA"""""""""""""""""UUEi:a32-""B':aei?50"""""""""""""""""""'i"':'O'i'7:365 944,483 321,84/ /!:i4,412 7, 2,490,118 2,325,016
2,3 8,
3,851 ,34i
4 ,962
2,805,379
,062
2,167,674
12,7 9,047
1 ,034,862
8,801
650,674
5,094,228
1,484,507
8, 1 ,573
i7,336
6,005,358
1,961 ,838
15 January 2026
CalifomioCitgFivsov+ce.co Page 6 of 16
197

ATTACHMENT A
Local Streets and Roads Projected FY2025-26 Revenues Based on State Dept of Finance sta :ewide revenue projections Estimated yanuary 2026 HtgtlWa7 USerS TaX ACd (HUTA)l" Streets & Highways Code Sec2l03(3' Sec2l05(3' Sec2l06(3' Sec2l07(3' Sec2l07.5(4' C'dCiVC'.-.LLA 184.670 123.817 5al.574 165.481 41)00 MADER/. 636.742 426.920 166.076 570.579 7.500
BELVEDERE 20.355 13.647 13.431 18.240 1.000
RTEMADERA 97.855 65.609 46.292 87.687 3.000
TOTAL
HUTA
!!)29,!)41
1,807,817
Road Mntnc
Rehab Acct
!)09,99!)
1 ,758,463
3 ,242
TOTAL
1,039,536
3,566,280
122,886

LARKSPUR

MILL V ALLEY
125,349
135,421 90,797
57, 1
62,221
112,325
121,350
3,000
3,000
382,668
412,789
346,1 2
373,987
728,840
786,777
22,387
22,
5,010
82, 48
14,292
56, 3,000
68,223 45,742
,683
33,
41,912
6 ,134
78,430
2,
2,000
210,828
268,
188 410
241 712
399,238
50 ass
a***
T 68,875
4,408
,1
2,956
61,718
3,
2,000
,000
21 18,967
90,209
2, 31 , 42
4 ,408 31,786 24,729 42,482 1,000 130,926 278,332
204,725
3 94,390
2 ,094
273,61
49,
6,000
2,

LOS BANOS
R

ALTURAS
III

MAMMOTH LAKES
138,392
468,584
939,
39,060
92,789
314,174
629,936
2 ,893
45,405
142,286
280,467
2,203
124,012
419,895
841 ,91
2 ,000
3 ,000
6 ,000
7 ,
1 ,413
403,598
I ,350,939
2,699,348
60,
382,192
1 ,294,069
2 ,594, 5
334,298
785,790
2,645,008
,294i023
26,067 1 7,477 14,381 24,921 1 ,000 83,846 71 ,987 155,832 69,191 46,391 65,523 2,046,a19 2,000 2,229,924 191,083 2,421 ,007 15 January 2026
CaliFomioCitgFivrovtce.co

198

ATTACHMENT A
Local Streets and Roads - Projected FY2025-26 Revenues Based on State Dept of Finance sta :ewide revenue projections estimated January 2026 HtghWa7 U!3erS TaX ACCt (HUTA)"' Streets & Highways Code TOTAL Sec2l03(3' Sec2l05(3' Sec2l06(3' Sec2l07(3' Sec2l07.5(4' HUTA 92,b /ti
49,051
1 ,000
1,000
2 / ,2Ub
1 3,!:i60
1 3,B!)ti
9,214
21J,3!)B
iO,146
30,360
15,132
Road Mntnc
Rehab Acct
83,843
41 ,789
TOTAL
1 /B,420
90,841
G

KING CITY

SAND CITY

SEASIDE
199, 88 133 1
137,463 92,165
874 1
96,239
3, 2,397
313,670 210,308
62,900 78,491
44,896 123,1/9
,394 244,521
46,668 128,62
5,843 3,203
96,293 281,078
5,000 579,131 ,090
3,000 400,703 379,625
6,000
8, 396,
16,017 9,872
907,350 866,250
AMERICANCANYON 214,627 143,902 71,098 192,326 5,000 626,953 592,727 50,188 33,650 20,303 44,973 2,000 151,113 138,601 ,129,222
780,328
,544
25,889
1,773,600
1 ,219,680
289,714

SAINT HELENA
Yl)UNTVILLE
) l{ @ >
C EY
N 3/ADA CITY
51 ,71 "l
28,606
€ r!ffW"7rn 1 30,428
32,085
34,871
19,180
B/,449
21,512
20,774
13,636
46,338
25,634
118,BB/ 11b,B/B
32,816 34,351
2,000
1 ,000
3,000
1 ,000
155,494
88,056
456,441
121,764
142,809
79,000
360,199
88,607
298,303
167,056
816,640
210,371
PO
15 January 2026
ColiforviioCitgFivrahce.co Page 8 of 16
199

ATTACHMENT A
Local Streets and Roads - Projected FY2025-26 Revenues Based on State Dept of Finance statewide revenue projections Estimated January 2026 HtgtlWa7 USerS TaX ACCt UT ' Streets & Highways Code Sec2l03(3' Sec2l05(3' Sec2l06(3' Sec2l07(3' Sec2l07.5(4' I-l I
496,356 332,795 217,084 444,781 7
3,319,256 ,48 1, 4,392 2,97 ,359 10,000
BUENAP ,018 541086 349,948 723;162 7,500
COSTAMESA 1078,110 722,846 465,890 966,086 10,000
ANA 317,580 2,930 1 , 4 1 6,000
93 "r,
GARD CiR i,647,8i6 ,104,821 709,544 ,476,595 ,000
i ,604 1,27 ,309 8al7, 1, it 10,000
gg,oig 197, 0 ,000
LAGUNAHILLS 300,618 201,557 133,369 269,381 6,000
LAGU WOODS 170,046 1 4,C112 ,526 152,3// ,000
LAHABRA 601 403,108 26"l,935 538,/!:i4 7,500
TOTAL Road Mntnc TOTAL
HUTA Rehab Acct
1,498, 6 1,3 ,7
9,953, 9, 66,648
2 ,428,714 2,228,70
3 ,242,931 2,977,370
96 ,716 ,048
1,651 7 1
4, 4,550,
, 688 ,2 819
2,869,283
9,120, 36
4,657,421
6,220,301
i ,838,
3, 63
9,499,483
15 January 2026
Co(iPorvrioCitgFivrovtce.co Page 9 of 16
200

ATTACHMENT A
Local Streets and Roads - Projected FY2025-26 Revenues Based on State Dept of Finance sta :ewide revenue projections tstimatedyanuary 2026 Htgt1Wa7 USerS TaX ACC! (HUTA)l" Streets & Highways Code Sec2l03(3' Sec2105(3' Sec2106'3' Sec2l07(3' Sec2107.5(4' Cl)LFAX 19.157 12.844 12.809 18.506 1.000
TOTAL Road Mntnc ToTAL
HUTA Rehab Acct
401!:i/U
64,316
364,3!!)4
52,905
/6!!),924
117,221
u
l@
572,199

CANYON LAKE
CORONA
HEMET
105,359
105,991
425,
1 ,525,246
668,903
881 ,029
205
383,645
70 ,
71 ,064
,183
1 ,022,641
,484
590,709
9, 69,
133,383 27 ,362
245,104 5 2,743
49,047 ,411
49,313 94,978
183,430 381,1
645,351 1,366,761
285, 6
374,802 789,484
6 ,000
7 ,500
3,000
3,000
6,000
10,000
7,500
925,206
1, ,190 1,580,21
322,457 290,964
324,346 292,7al1
,281, 1, ,
4,569,999 4,212,208
2,010,003 1,84 ,282
2,643,524 2,433,102
1, ,760
3,3(H ,407
613,421
617,057
8,782,208
3,
5,076,625
INDIO
RP
886,827
,015, 38
594,596
680,
377
431, 23 909,657
7,
0,000
2,660 2, ,113
3, ,543 2,803,463
5,109,953
5, ,006
M
3 1,
1,105,106
NORCO
1, 1
255, 184
PERRIS

SAN JACINTO
778,546
3,069,879
526,985
,319
249
740,947
8 171 ,094
,4
521 ,996
2 ,058,280
3 53,330
160,940
468,906
333,161
990,277
454,
111968 228,668
183,800 38
331,762 697,649
1 ,294,044 2,750,895
2 26,115 4/2,22/
154,022 318,399
6,000
10,000
10,000
6,000
6 ,
7 ,500
10,000
7,500
6,000
12 ,172 1,026,765
3,315,235 3,051,924
3 772,914 704,730
;I ,
2,337,453 2,150,077
9,183,098 8,477,957
1,586,157 1,455,351
1, 1,973 981
2, 7,93
6,367,159
"i ,477,844
4,487,530
17,66 ,055
3,041 ,509
,243
15 January 2026
ColiPovviioCitgFivro+aice.co Page 4 0 of 16
201

ATT ACHMENT A
Local Streets and Roads Projected FY2025-26 Revenues Based on State Dept of Finance sta'.ewide revenue projections estimateaianuaryzozs HighWa7 USerS TaX ACCt (HUTA)l" Streets & Highways Code /,bOO
10,000
/!:+3,304
i,570,156
3/:,4!)1
771,117
!:iB3iti39
1,!74,826
B4t),Bb!)
,752,226
GAL

ISLETON
250,047
7,619
-j ,650
5,108
114,155
8,132
224,065
6,827
6,000
1,000
TOTAL Road Mntnc TOTAL
HUTA Rehab Acct
:,!!,!)3/,!)4!,1 :,321,601
19al8 690,
686 21,040
4,B!)9,1!)1
1, 462
49,726
5,059,77 3, 455 2,217, 4,534, ,000 15 13, 29,19
G
CHINO
48,
912,386 6-It/33 3/!),346
629,2/9
81 /,!:iB2
2,000
7,500 2,724,546 2,519,698
,8
5,244,244

HIGHLAND
NbbL)LES
RbL)LANDS
47,188
1 , , 1
/04,2!:i6
2 ,i
2/0,986
84,339
b!)4,0et0
3titi,81 1
162,/03
244,2/3
31,638
4UU.9/9
22ti.989
i03.3!:i4
ale:i2./64

23.9B4
m',"7'20"""""""""""""""" 3,000
sr4',"'i:3g""""""""""""""""10,OCi0
491j%""""""""""""""""""'7i500
z*/','453""""""""""""""" 6,000
:i:O':T7"'i""""""""""""""""""'e',?)00
<j':'2Ei5""""""""""""""""' i,00Ci
1,130,812
4/2,18/
1 ,433,('26
18 ,
-1,638:634
148,076
2:105,840
1 i,510:876
i
130,317
41 I
1 ,944,9-15
,1
3,"149,510
276:393
4,050,754
,i
1 ,564,732
15 January 2026
Co(iPovvrioCitgFivvmce.com Page 11 of 16
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204

ATTACHMENT A
Local Streets and Roads - P 'ected FY2025-26 Revenuesrol Based on State Dept of Finance statewide revenue projections Estimated yanuary 2026 HtgtlWa9 USerS TaX ACCt UT ' Streets & Highways Code Sec2l03(3' Sec2l05(3' Sec2106(3' Sec2l07(3' Sec2107.5(4' - i ioi@
CAMPBELL 419,048 280,962 172,577 375,506 6,000
PERTINO 578,236 387,693 236,312 518,153 7,500
TOTAL Road Mntnc ToTAL
HUTA Rehab Acct
1 ,254,093
I ,727,894
1,157,268
1 ,596,890
2,411 ,360
3,324,784

LOS TOS

ALTOS HILLS
303,982
81,918
203,812
54,924
126,507
37,598
272,396
73,406
6,000
2,000
912,697
249,846
839,493
226,229
1,752,190
476,075

MILPITAS

MONTE SERENO
785,014
34,854
526,333
23,369
319,101
18,755
703,445
31,233
7,500
1,000
2,341,395 2,167,941
109,211 96,256
4,509,336
205,467

MOUNTAIN VIEW

PALO ALTO
829,078
659,272
555,877
442,026
336,744
268,757
742,931
590,769
7,500
7,500
2,472,130 2,289,631
1,968,324 1,820,684
4,761 ,761
3,789,009

SANTA CLARA

SARATOGA
1 ,289,785
298,136
864,770
199,893
521 ,200
124,167
1,155,766
267,157
10,000
6,000
3,841,521 3,561,945
895,353 823,349
7,403,466
1,718,702

LOYALTON
as
DORRIS

DUNSMUIR
94,482
619,990
63,348
415,689
40,096
236,414
84,664
555,569
2,000
7,500
284,590
1,835,162
260,926
1,712,201
545,515
3,547,363
7,072 4,742 6,449 7,779 1,000 27,043 19,532 46,575 8,222
16,320
5,513
10,942
8,917
12,971
7,368
51,146
1,000
1,000
31,020
92,380
22,708
45,071
53,728
137,451

FORT JONES

MONT AGUE
6,6!51
11,778
4,459
7,897
8,130
10,697
5,960
10,554
1,000
1,000
26,200
41,925
18,367
32,526
44 567
74,452

TULELAKE
WEED
8,625
27,974
5,783
18,756
9,118
18,805
7,729
66,222
1,000
1,000
32,255
132,757
23,819
71254
56,074
210,010
15 January 2026
ColiforvtioCitgFivrovsce.co Page 44 of 16
205

ATTACHMENT A
Local Streets and Roads Projected FY2025-26 Revenues Based on State Dept of Finance sta'.ewide revenue projections Estimated yanuary 2026 HtghWa7 USerS TaX ACCt (HUTA)l" Streets & Highways Code Sec2l03(3' Sec2l05(3' Sec2l06(3' Sec2l07(3' Sec2107.5(4' )IXON i93.333 129.625 86.C)13 173,244 4,000
TOTAL Road Mntnc TOTAL
HUTA Rehab Acct
785,935
586,215
716,745
533,920
1,502,680
1,120,135

RIO VISTA

SUISUN CITY
99,072 66,425 46,417 88,778 3,000
282,266 189,253 123,371 252,936 6,000
303,692
853,825
273,603
779,522
577,295
1 ,633,347

VALLEJO
*ai*

CLOVERDALE

COT ATI
1,206,880 809,184
86,336
72,65al
57,886
48,711
511,770 1,081,476 10,000
41 ,689
35,842
77,365
65,102
2,000
2,000
3,619,310 3,332,990 6,952,300
265,276
224,305
238,430
200,637
503,706
424,942

PETALUMA

ROHNERT PARK

SANTA ROSA

SEBASTOPOL
SONOMA

WINDSOR
1 ,710,156
72,095
103,212
2 51,245
1,146,618
48,338
69,2oat
168,454
735,507
35,604
48,900
112,151
1 ,532,457
64,604
92,487
2 25,139
10,000
2 ,000
3 ,000
6,000
5,134,738
222,641
316,800
762,988
4,722,865
igg,roz
285,036
693,852
9,857,603
421,743
601 ,836
I ,456,840
CERES

HUGHSON

MODESTO
NEWMAN

OAKDALE

PATTERSON

RIVERBANK

TURLOCK

WATERFORD
481 ,368
76,446
2,106,070
118,727
222,629
247,900
250,028
692,095
87,869
322,746
51 ,255
1,412,069
79,604
149,268
166,211
167,638
464,033
58,914
193,163
34,714
828,919
51 ,259
91916
101,805
102,638
275,621
39,184
431,350
68,503
I ,887,233
106,391
199,496
222,142
224,048
620,181
78,739
7,500
2,000
10,000
3,000
5 ,000
6 ,000
6 ,000
7 ,500
2,000
1 ,436,127
2 32,917
6 ,244,291
358,980
668,309
744,058
750,351
2,059,430
266,706
1 ,329,374
2 11 ,117
5 ,816,244
327,884
614,826
684,6al6
690,491
1 ,911,330
2 42,664
2,765,501
444,034
12,060,535
686,865
i,283,135
1,428,674
1 ,440,842
3,970,760
509,370

LIVE OAK

YUBA CITY

CORNING

RED BLUFF
TEHAMA
92,555
675,171
79,235
i<r,gog
4,159
62,056
452,686
53;125
95,147
2,789
39,593
258,605
34,b96
58,164
6,364
82,938
605,015
/1,(X)1
127,164
3,727
2,000
7,500
2 ,000
3 ,000
1000
279,142
1 ,998,978
239,957
425,384
18,039
255,606
I ,864,591
218,819
391,905
11,486
534,748
3,863,569
458,775
817,289
29,525
573,349
422,354
384,416
283;178
249,778
185,262
513,773
378,468
7,500
6,000
1,728,816 1,583,392
1,275,263 1,166,398
3,312,208
2,44al ,66al
'A 15 January 2026
Co(iPorvsioCitgFiviovtce.co Page 15 of 16
206

ATTACHMENT A
Local Streets and Roads Projected FY2025-26 Revenues Based on State Dept of Finance sta'.ewide revenue projections tstimateayanuaryzozei Highway Users Tax Acct (HUTA)l" Streets & Highways Code Sec2l03(3' Sec2105'3' Sec2106'3' Sec2l07(3' Sec2l07.5(4' DINUBA 249.405 167.220 95.433 223.490 6.000
EXETER 99.187 66.502 40.844 88.881 3.000
TOTAL Road Mntnc TOTAL
HUTA Rehab Acct
741,547
298,414
688,77al
273,920
1,430,318
572,335

LINDSAY

PORTERVILLE
121,947 Ell,763 49,115 109,276 3,000
609,707 408,794 226,365 546,354 7,500
365,101 336,777
1,798,721 1,683,804
7C11 ,878
3,482,525

VISALIA

WOODLAKE
@ > I>
SONORA
oi@

CAMARILLO

FILLMORE
1,408,531
76,714
944,386
51,435
5al6,655 1,262,174
32,678 68,743
10,000
2,000
4,141,747 3,889,882
231,570 211,858
8,031 ,629
443,428
49,862 33,431 33,276 44,681 2,000 163,250 137,701 300,951 678,238
163,251
454,742
109,456
295,232
74,707
607,763
146,288
7,500
4,000
2,043,475 1,873,060
497,702 450,844
3,916,535
948,546

SAN BUENAVENTURA

SANTA PAULA
1054,928
303,388
707,304
203,4al4
456,537
134,715
945,312
271 ,863
10,000
6,000
3,174,080 2,913,349
919,380 837,853
6,087,429
1 ,757,233

THOUSAND OAKS
@I@
DAVIS

WEST SACRAMENTO
1,215,409 814,903 525,257 1,089,119 10,000 3,654,688 3,356,544 7,011,232 626,967 420,366 281,819 561,820 7,500 1,898,472 1,731,468 3,629,941 530,943 355,984 239,391 475,773 7,500 1,609,5SJ1 1,466,282 3,075,873 WOODLAND 590,551 395,950 265,728 529,188 7,500 1,788,917 1,630,899 3,419,E115 : i @
MARYSVILLE 126,126 84,564 45,299 113,020 3,000 372,009 348,316 720,324 WHEATLAND 38,448 25,779 17,146 34,453 1,000 116,825 106,18al 223,006 Statewide Total $ 320,491,000 $ 214,881,500 $128,094,662 $ 293,573,000 $ 2,724,000 $ 959,764,162 $ 885,086,500 $ 1,844,850,662 Notes:

1. The Highway Users Tax is also known as the "Motor Vehicle Fuel Tax", the "Gasoline Excise Tax" and "Article XIX Revenues."

2. Rolling Hills has no public streets and is therefore not eligible for HUTA or RMRA allocations.

3. Str&HwysCode §§ 2103, 2105, 2106, 2107 and RMRA amounts are paid monthly. Includes special payments for snow removal.

4. Str&HwysCode § 2107.5 amounts are typically paid by the State Controller once per year in July. 15 January 2026
Co(iForhioCitgFinovrce.co

207

ATT ACHMENT B
Local Streets and Roads - Projected FY2026-27 Revenues Based on State Dept of Finance stat*=wide revenue projections tstimatedyanuary:iozs H!gtlWa7 USerS TaX ACCt (HUTA)" Streets & Highways Code Sec2l03(3' Sec2l05(3' Sec2l06(3' Sec2l07(3' Sec2l07.5(4'

ALAMEDA
ALBANY
7,500
5,000
690,786
185,075
291 ,689
81 ,663
516,581
138,402
772,536
206,977
7,500
5,000
690,786
185,075
TOTAL Road Mntnc TOTAL
HUTA Rehab Acct
4,496,277
1,211,145
DUBLIN

EMERYVILLE
730,2al4 488,281 275,972 652,943 7,500 2,154,909 2,095,719 131,699 88,065 53,708 117,762 3,000 394,233 377,976 4,250,628
772,210

OAKLAND

PIEDMONT
4,234,655 2,831,636 1,577,381 3,786,544
110,161 73,663 45,709 98,504
10,000 12,440,216 12,153,495
3,000 331,037 316,163
24,593,711
647,201

SAN LEANDRO

UNION CITY
r ' r @
888,915
685,252
594,401
458,215
334,907
259,275
794,850
612,738
7,500 2,620,574 2,551,193
7,500 2,022,981 1,966,678
5,171767
3,989,659
I@o@
AMADOR
IONE
1 ,955
88,350
1 ,307
59,078
5,753
47,844
i,748
79,001
1 ,000
2 ,000
11,764
276,272
5,612
253,565
17,375
529,837

PLYMOUTH

SUTTER CREEK
BIGGS
CHICO
10,969
25,849
19,289
ill3,021
7,335
17,285
12,898
744,257
10,144
17,394
12,458
446,685
9,808
23,114
17,248
995,241
1,000
1,000
39,257
84,641
31,482
74,187
1,000 62,893 55,359
10,000 3,309,203 3,194,379
70,738
158,828
118,252
6,503,582

OROVILLE

PARADISE

ANGELS CAMP
COLUSA

WILLIAMS
195,617
108,401
35,704
63,899
54,641
130,806
72,486
23,874
42,728
36,537
82,463
47,837
30,561
21,928
19,446
174,917
101,987
at,925
4,000
3,000
1 ,000
57,137
48,859
2,000
2,000
587,803
333,711
123,065
187,692
161,482
561 ,423
311,113
102,470
183,391
156,819
1 ,149,226
644,824
2 25,535
371 ,082
318,301
1 5 January 2026
CaliFovviiaCitgFivxav+ce.co

208

ATT ACHMENT B
Local Streets and Roads - Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections estimated yanuary 2026 H!gbWa7 USerS TaX ACCt (HUTA)l" Streets & Highways Code Sec2l03'3' Sec2105(3' Sec2106(3' Sec2107(3' Sec2l07.5(4'

ANTIOCH

BRENTWOOD
10,000
7,500
i,020,890
574,755
457,566
259,705
763,437
429,811
1,141,705
642,773
10,000
7,500
457,566
259,705
TOTAL Road Mntnc TOTAL
HUTA Rehab Acct
6,670,301
3,759,307

CONCORD

DANVILLE

HERCULES

LAFAYETTE
1 ,227,142 820,567
426,909 285,466
2 56,388 171,442
248,567 166,212
491448 1,097,285
174,099 38al,733
106,476 229,257
103,374 222,263
10,000
6,000
6,000
6,000
3,646,442 3,521,906
1,274,207 1225
769,562 735,835
746,416 713,388
7,168,348
2,499,439
1 ,505,397
1 ,459,804
MORAGA
OAKLEY
169,162 113,116
457,793 306,118
71 ,885
186,347
151,26al
409,349
4,000 509,424 485,497
6,000 1,365,606 1:313,869
994,920
2,679,475

RICHMOND

SAN PABLO
r,i:ia,ogz
314,85al
757,678
210,535
454,151 1C113;188
129,661 281533
10,000 3,368,109 3,251,983
6,000 942,580 903,625
6,620,092
1 ,846,205

WALNUT CREEK
as-*

CRESCENT CITY
i*oi**ll

PLACERVILLE

SOUTH LAKE TAHOE
687,344 459,614 277,380 614,609 7,500 2,046,448 1,972,683 4,019,130 65,815 44,009 25,453 58,851 2,000 196,128 188,890 385,Oal8 105,781
209,451
70,734
140,056
73,155 g4igg4
140,146 1,717,290
3,000 347,665
5,000 2,211,943
303,593
601,126
651 ,258
2,813,069
y; 15 January 2026
0 CaliFovviioCitgFivyonce.cowt

209

ATT ACHMENT B
Local Streets and Roads Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections CLOVIS

COALINGA
1,262,347
176,348 117,92al
430,589
64,282
1128,765
157,687
10,000
4,000
10,000 3,675,809 3,622,945
4,000 520,237 506,120
TOT RoadMntnc TOTAL
HUTA Rehab Acct
7,298,754
1 ,026,357
FOWLER
FRESNO
KERMAN

KINGSBURG
74,956 50,122 30,083 67,024
5,445,802 3,641509 1,841668 4,869,527
171,430 114,632 62,623 153,290
129,880 86,849 48,609 116,136
2,000 224,185 215,125
20,000 15,818,506 15,629 497
4,000
3,000
505,975
384,474
492,006
372,758
439,310
31 ,448,003
997,982
757,231
'l 4J'l<a
ORLAND

WILLOWS
am=l-J$Q[# m 1 '
ARCATA

BLUE LAKE
85,094
63,303
185,763
11,781
56,901
42,329
124,216
7,877
31 ,757
24,853
83,905
9,817
76,090
56,604
166,105
10,534
2,000
2,000
4,000
1,000
251,842
189,089
563,988
41 ,009
244,221
181 ,679
533,140
33,811
496,063
370,768
1,097,128
74,819

FERNDALE

FORTUNA

TRINIDAD

BRAWLEY

CALEXICO
13,628
122,499
33,142
3,00al
283,048
391 ,772

EL CENTRO

HOLTVILLE

WESTMORLAND
tlSW4<1111Sk!'
BISHOP
449,786
55,579
20,374
37,688
9,113
81,913
2,007
189,269
261 ,gz"i
300,763
37,165
13,624
10,603
56,965
6,078
116,150
158,921
181,743
26,665
12,815
12,186
109,536
2,684
2!)3,096
3 50,3al5
4 02,189
49,698
18,218
i,000
3,000
46,531
373,913
39,114
351 ,573
1,000 14,770
6,000 847,563
6,000 1,168,979
6,000 1340,482
2,000 171,106
8,614
812,350
1,124,389
1 ,290,889
159,513
1,000 66,031 58,474
85,645
725,486
23,384
1 ,659,913
2 ,293,368
2 ,631 ,370
3 30,619
124,505
25,201 20,846 33,700 1,000 118,436 108;166 226,601 j: 15January2026
CaliFovvxiaC itgFivravrce.covn Page 3 of 16
210

ATT ACHMENT B
Local Streets and Roads - Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections tstimatedyanuaryzozb HtgtlWa7 USerS TaX ACCt (HUTA)" Streets & Highways Code Sec2l03(3' Sec2l05(3' Sec2l06(3' Sec2l07(3' Sec2l07.5'4' C<lilll'l'lll!k*'
ARVIN 195,441 130,688
BAKERSFIELD 4,098,664 2,740,702
4,000 563,330 560,918
10,000 11,644,035 11,763,2CIl
58,44al 174,760
1,129,725 3,664,944
TOT RoadMntnc TOTAL
HUTA Rehab Acct
1 ,124,248
23,407,236
DELANO

MARICOPA

RIDGECREST

SHAFTER
516,500
10,0:31
277,515
229,307
345,374
6,707
185,569
153,333
146,559
7 ,553
8 0,967
67,736
46al,844
8,969
248,148
205,042
7,500
1 ,000
6,000
5,000
1 ,477,778
34,260
798,199
660,418
1 ,482,360
788
796,469
658,aK3
2,960,138
63,048
1 ,594,668
i,318,531

TEHACH API
WASCO
€i+'R('$1<'1lli'k*'
AVENAL

CORCORAN
127,495
265,069
133,879
211 ,426
85,253
1 77,247
89,522
14al,377
39,792
77,55al
43,809
66,404
114,003
237,020
119,712
189,053
3,000
6,000
3,000
5,000
369,544
762,887
389,922
6al3,259
365,911
760,751
384,233
606,794
735 455
1 ,523,638
774,al55
1 ,220,052

LEMOORE
p41:4"1'C1!!%,6"

CLEARLAKE

LAKEPORT

SUSANVILLE

AGOURA HILLS

ALHAMBRA
270,730 181,032 83,683 242,Oal 6,000 783,526 776,997 1,560,523 164,929
49,136
110,285
32,857
63,144
22182
147,476
43,937
4,000
2,000
489,834
150,112
473,347
141,022
963,181
291,134
158,70al
197,797
807,741
106,121
132,263
540,122
50,816
79;112
308,265
176,408 4,000 496,046 455,474 951520
176,866
722,266
5,000 59al,039 567,680
7,500 2,385,894 2,318,224
1;158,719
4,704,118

BALDWIN PARK
BELL
704,257
333,710
470,924
223,146
269,387
130,174
629,733
298,397
7,500
6,000
2,081,801 2,021224
991,425 957,750
4,103,025
1,949,175

BELL GARDENS

BEVERLY HILLS
386,082
319,681
258,166
213,765
149,850
124,903
345,227
285,852
6,000
6,000
1,145,325 1,108,059
950,200 917,486
2,253,384
I ,867,686

BURBANK

CALABASAS
1,047,753
227,058
700,6al3
15al,830
398,437
90,105
936,880
203,0:31
10,000
5,000
3,093,684 3,007,060
677,024 651,659
6,100,744
i ,328,683
CERRITOS 482,576 322,690 186,102 431,510 6,000 1,428,877 1384,997 2,813,874 j 4 5 January 2026
1"
Ca(iFovniaCitgFiviovsce.co

211

ATT ACHMENT B
Local Streets and Roads Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections Highway Users Tax Acct (HUTA)" Streets a Highways Code TOTAL HUTA
Road Mntnc
Rehab Acct
TOTAL
Sec2l03(3'l Sec2l05(3'l Sec2l06(3'l Sec2l07(3'l Sec2l07.5(4' Estimated January 2026
CLAREMOISIT 374,771 250,602 145,600 335,113 6,000 1,112,086 1,075,596 2,187,682

COMPTON
COVINA
939,430
501,532
628180
335,366
357,740
193,224
840,020
448,460
7,500 2,772,870 2,696,172
7,500 1,486,082 1,439,402
5,469,041
2,925,485

CULVER CIIY

DIAMOND BAR

GARDENA

GLENDALE
395,311
537,265
264,337
359,260
153,317
206,649
353,479
480,412
6 ,000
7 ,500
1,172,445 1134,547
1,591,086 1541,956
2 ,306,992
3 ,133,042
595,435
1,915,189
398157
1,280,652
228,503 532,426
724,330 1,712,524
7,500 1,762,022 1,708,905
10,000 5,642,695 5,496,609
3,470,926
11,139,304

HAWAIIAN GARDENS

HAWTHORNE
136,343
860,241
gt,tzo
575,227
56,023
327,989
121,915
769,210
3,000
7 408,450 391,304
2,540,167 2,468,898
799,755
5,009,065

HIDDEN HILLS

HUNTINGTON PARK
17,070
534,909
11,414
357,684
11,213
205,763
15,263
478,305
1 ,000
7,500
55,960 48,990
1,584,162 1,535,194
104,950
3,119,356

INGLEWOOD

IRWINDALE
I ,060,854
14,753
709,373
9,865
403,359
10,343
948,594
13,192
10,000 3,132,180 3,044,659
1,000 49,152 42,340
6,176,839
91 ,492

LA HABRA HEIGHTS

LAKEWOOD
55,276
804,534
36,962
537,977
25,567
307,061
49,427
719,399
2,000
7,500
169,232 158,643
2,376,471 2,309,020
327,875
4,685,491

LANCASTER

LA PUENTE
1 ,737,942
371 ,584
1,162,130
248,471
657,738 1,554,033
144,403 332,263
10,000 5,121,844 4,987,908
6,000 1102,720 1066,448
10,109,752
2,169,169

LAWNDALE
LOMITA
310,676
204,631
207,744
136,833
121,520
81,679
277,8CIl
182,977
6,000
5,000
923,741
611;120
891,644
587,293
i,815,385
i,198,413

LOS ANGELES

LYNWOOD
38,113,889 25,486,062 14,324,048 34,080,677
670196 448,148 256,590 599,276
20,000 112,024,676
7,500 1,981,710
109,387,175 221,411,851
1923,468 3,905,178

MANHATT AN BEACH

MAYWOOD
346,693
245,663
231 ,827
164,270
135,051
97,095
310,006
219,667
6,000
6,000
1,029,577
732,695
995,011
705,055
2,024,589
q,437,749
MONTEBELLO 613,297 410,101 235,213 548,398 7,500 18-14,509 1,760,167 3,574,676 15 January 2026
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212

ATT ACHMENT B
Local Streets and Roads Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections Highway Users Tax Acct (HUTA)" Streets & Highways Code TOTAL HUTA
Road Mntnc
Rehab Acct
TOTAL
Sec2l03'3'l Sec2l05(3'I Sec2l06(3'l Sec2l07(3'l Sec2l07.5("' Estimated January 2026
MONTEREY PARK 597,215 399,347 229,171 534,C)17 7,500 1,767,250 1,714,011 3,481,26al

PALMDALE

PALOS VERDES ESTATES
1 ,654,969
130,535
1,106,648
87,287
626,566
53,842
1,479,840
116,722
10,000
3,000
4,878,023 4,749,775
391,386 374,637
9,627,799
766,023

PASADENA

PICO RIVERA
1,374,874
607,4:31
919,353
406,178
521,335 1,229,385
233,Oal0 543153
10,000 4,054,946 3,945,899
7,500 1,797,272 1,743,332
8,000,845
3,540,604

SANTA CLARITA

SANTA FE SPRINGS
2,271,825
183,485
1,519,128
122,693
858,316 2,031,420
73,735 164,068
10,000
4,000
6,690,689 6,520,156
547,980 526,602
13,210,846
1,074,583

SIERRA MADRE

SIGNAL HILL

SOUTH PASADENA
109,262
q14,961
908,771
263,534
73,0 €31
76,873
607,679
176,22al
45,849
47,991
346,222
103,809
97,700
102,796
3,000
3,000
812,605
235,647
7,500
6,000
328,872
345,62al
313,582
329,940
2,682,776
785,211 756,346
642,454
675,56al
5,290,957
I ,541 ,557

WEST COVINA

WEST HOLLYWOOD
1,071,256
348,893
716,329
233,298
407,267
135,878
957,896
311 ,973
10,000
6,000
3,162,747 3,074,513
1,036,041 1001325
6,237,260
2,037,366
WHITI'IER 858,862 574,305 327,471 767,977 7,500 2,536,116 2,464,942 5,001,058 15 January 2026
Ca(iFovvuaaC itgFivravice.co Page 6 of 16
213

ATT ACHMENT B
Local Streets and Roads Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections estimated January 2026 H!gtlWa7 USerS TaX ACd (HUTA)" Streets & Highways Code

CHOWCHILLA
MADERA
1,)!!1;+lSg<;l'j,,'J},k4'

BELVEDERE

CORTE MADERA
188,392 125,975
649,577 434,361
20,765
99,827
13,885
66,753
52,403
168,937
13,584
47,028
168,457
580,839
18,568
89,264
4,000 539,227
7,500 1,841,214
1,000 67,802
3,000 305,872
540,688 1,079,915
1864,293 3,705,507
59,596
286,506
127,399
592,378
ROSS

SAN ANSELMO
22,838
124,992
15,27al
83,580
14,461
57,673
20,421
111,765
1 ,000
3,000
73,991
381 ,011
65,545
358,728
139,536
739,739
69,599
89,288
70,263
4,497
46,539
59,706
46,984
3,007
34,241
42,570
34,266
6,686
62,234
79,840
62,828
4,021
2,000
2,000
2,000
1,000
2al4,613
273,404
216,341
19,212
199,749
256,259
201,657
12,907
414,362
529,663
417,998
32,118

WILLITS

ATWATER

DOS PALOS
48,364
311 ,498
56,655
32,340 25,082 43,246 1000 150,033 138,806 288,838 208,293
37,884
95,979
21,384
278,535
50,659
6,000
2,000
900,305
168,58"l
894,001
"i62,599
1 ,794,305
33al;181

LIVINGSTON

LOS BANOS
141;182
478,030
94,406
319,650
46,126
144,725
126,242
427,445
3,000 410,955 405193
6,000 1,375,850 1,371,950
816,149
2,7 47,800
* I @! @ I

ALTURAS
M.'81#i}'.(#.K@llm!' "

MAMMOTH LAKES
26,592
70,586
17,782
47,200
14,551 25,341 1,000 85,266 76,319 161,585
66,600 2,047,934 2,000 2,234,320 202,583 2,436,902 15 January 2026
CaliForniaC itgFivsnv+ce.com

214

ATT ACHMENT B
Local Streets and Roads - Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections estimated yanuary 2026 H!gt1Wa7 USerS TaX ACd (HUTA)l" Streets & Highways Code Sec2l03(3' Sec2l05(" Sec2l06'3' Sec2l07(" Sec2l07.5(4'

CARMEL-BY-TH E-SEA

DEL REY OAKS
1,000
1 ,000
27,694
13,803
13,813
g,:g:
20,710
10,322
30,972
15,437
27,694
13,803
TOTAL Road Mntnc ToTAL
HUTA Rehab Acct
94189
49,855
88,889
44,304
183,079
94,159

GREENFIELD

KING CITY
203,204
140,234
135,879
93,772
63,931
45,607
181,701
125,394
5,000
3,000
589,714
408,006
583,196
402,472
1172,911
810,478

MONTEREY

PACIFIC GROVE
278,375 186,144 85,806 248,917 6,000
146,432 97,916 47,4alal 130,936 3,000
805,242
425,695
798,938
420,261
1,604,181
845,956

SAND CITY

SEASIDE
3,647
si9,993
2,438
213,974
5,861
97,918
3,261
286,132
1,000
6,000
16,207
924,015
10,466
918,384
26,673
1 ,842,399
SOLEDAD 269,342
€SA;Jatl.t?.l!.J1!.j. '
AMERICAN CANYON 218,954
CALISTOGA 51,199
180,104 83,177 240,840 6,000 779,462 773,012 1552,474 146,410
34,236
72,274
20,578
195,784
45,781
5,000
2,000
638,422
153,795
628,399
146,943
i ,266,821
300,737
SAINTHELENA 52,754
YOUNT\/ILLE 29,183
I 'i * s : "' * 'l' "'
GRASSVALLEY 133,058
NE\/ADACITY 32,732
35,275
19,514
88,973
21 ,887
21 ,057
13,793
120,708
33,:313
47,171
26,095
118,977
34,868
2,000
1 ,000
3,000
1,000
158,258
89,584
464,716
123,799
151,404
83,755
381 ,877
93,940
309,661
173,339
846,593
217,739
CaliFovvriaCitgFiviovsce.cowt Page 8 of 16
215

ATT ACHMENT B
Local Streets and Roads - Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections tstimateayanuaryzozs H!ghWa7 USerS TaX ACCt (HUTA)(" Streets & Highways Code TOTAL Road Mntnc Sec2l03(3'i Sec2l05(3' Sec2l06(3'i Sec2l07(3)lSec2l07.5(4' HUTA RehabACCt ToTAl g@1;!-IX(elf@l@1lll%ffi
ALISOVIEJO 506,362 338,595 220,850 452,779 7,500 1,526,086 1,453,263 2,979,349 ANAHEIM 3,386;166 2,264,267 1,449,576 3,027,842 10,000 10,137,850 9,718,323 19,856,173

BUENA PARK

COSTA MESA

DANA POINT

FOUNTAIN VALLEY
823,286
1,099,842
323,982
558,490
550,516
735,444
2 al6,641
3 73,452
356,071
474,070
143,034
243,091
736,166
983,457
289,698
<gg,agi
7,500
10,000
6 ,000
7 ,500
2 ,473,539 2,362,837
3 ,302,813 3,156 556
979,355 929,832
1681,924 1,602,871
4,836,375
6,459,370
1,909,187
3,284,796

GARDEN GROVE

HUNTINGTON BEACH
1 ,681 ,033
1,938,917
1,124,076
1296,518
722,047 1,503,146
832,078 1733,741
10,000
10,000
5,040,303 4,824,579
5,811,254 5,564,707
9,864,882
11 ,375,961

LAGUNA BEACH

LAGUNA HILLS
224,741
306,678
150,280
205,070
100,690
135,650
200,959
274,225
5 ,000
6 ,000
681,671
927,623
645,009
880,168
1 681
I ,807,791

LAGUNA WOODS

LA HABRA
173,474
613,346
115,999
410,133
78,816
266,496
155,117
548,442
4,000
7,500
527,405 497,870
1,845,917 1,760,308
1,025,275
3,606,225

LA PALMA

LOS ALAMITOS
152,249
117,376
10al,806
78,487
69,760
54,881
136,138
104,955
4,000
3,000
463,953
358,700
436,955
336,871
900,908
695,571

SANTA ANA

SEAL BEACH
3,082,763 2,061,387 1,320,123 2,756,545
247,325 165,382 110,326 221,153
10,000
6,000
9,230,818 8,847,555
750,186 709,825
18,078,373
1,460,010
TUSTIN

VILLA PARK
785,461
57,280
525,223
38,302
339,933
29,240
702,343
51,219
7,500
2,000
2,360,459 2,254,278
178,041 164,395
4,61 4,737
342,436
YORBA LINDA 665,259 444,846 288,646 594,861 7,500 2,001lal3 1,909,299 3,910,411 15 January 2026
J
CaliForv+iaC itgFivyr:rvsce.co

216

ATT ACHMENT B
Local Streets and Roads - Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections tstimatedyanuaryzozb H!gtlWa7 USerS TaX ACCt (HUTA)(" Streets & Highways Code Sec2l03(3' Sec2l05(3' Sec2l06(3' Sec2l07(3' Sec2l07.5(4' 1;Jff41@IIA@t@JllXk*'ffl
AUBURN
COLFAX
3,000
1,000
120,350
18,E114
60,934
12,951
go,ooo
13,068
134,593
19,543
TOTAL
HUTA
408,876
65,377
Road Mntnc
Rehab Acct
386,282
56,089
TOTAL
795,158
121,466
LOOMIS

ROCKLIN
66,548 44,500 32,555 59,506 2,000 205,109 190,994 396,104 715,363 478,350 303,152 639,664 7,500 2;144,029 2, 098 4,197,128

PORTOLA

BANNING

BEAUMONT
20,638
312,348
583,733
13,800
208,862
390,332
9,566
135,665
249,367
170,053
279,295
521,962
1 ,000
6 ,000
7 ,500
215,058
942,170
1 ,752,894
59,232 274,289
896,442
1675,318
1 ,838,612
3,428,212

CALIMESA

CANYON LAKE
107,482
108,128
71,872
72,303
49,832 96,109
50,102 96,686
3,000
3,000
328,295
330,219
308,475
310,327
636,770
640,546

COACHELLA
CORONA
433,918 290,153
1,555,992 1,040,464
186,599 388,001
656,715 1391337
6,000 1304,672 1,245,350
10,000 4,654,508 4,465,711
2,550,022
9,120,219

EASTVALE
HEMET
682,387
898,789
456,300
601 ,004
290,700
381,366
610177
803,679
7,500 2,047,064 1958,457
7,500 2,692,339 2,579,533
4,005,521
5,271 ,871
INDIO

JURUPA V ALLEY
904,704
1 ,035,60'l
604,959
692,488
383,844
438,686
808,968
926,014
7,500 2,709,975 2,596,508
10,000 3,102,788 2,972,184
5,306,483
6,07 4,972

LA QUINTA

MENIFEE
379,288
1,'127,382
253,623
753,860
163,710 339;151
477,140 1,008,083
6,000 1,141,772 1,088,559
10,000 3,376,465 3,235,597
2,230,331
6,a12,062

MURRIETA
NORCO

PALM SPRINGS
PERRIS
1 ,092,901
2 60,328
434,818
794,240
730,803
174,076
290,755
531,094
462,693
113,870
1 976
337,563
977,250
232,780
388,805
710,193
10,000
6,000
6 ,000
7 ,500
3,273,647 3,136,635
787,053 747,142
i,307,354 1,247,931
2,380,590 2,279,475
6,410,282
1 ,534,196
2 ,555,285
4,660,064

RIVERSIDE

SAN JACINTO
3,131,762 2,094,152 1,316,915 2,800,359
537,608 359,488 230,042 480,7al8
10,000 9,353,190 8,988,184 18,341,374
7,500 1615,356 1,542,938 3158,294
WILDOMAR 362,482 242,385 156,669 324,124 6,000 1,091,660 1,040,326 2131,986 J, 15 January 2026
<?
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217

ATT ACHMENT B
Local Streets and Roads - Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections tstimateayanuaryzozb Ha a7 USerS TaX ACCt UT ' Streets & Highways Code Sec2l03(3' Sec2l05(3' Sec2l06(3' Sec2l07(3' Sec2l07.5(4' *a
CITRUS HEIGHTS 857,601 573,462 378,973
ELKGROVE 1,787,548 1,195,301 784,711
7,500 2,584,386 2,461,322 5,045,708
10,000 5,375,950 5,130,277 10,506,227
766,850
1,598,390
TOTAL Road Mntnc ToTAL
HUTA Rehab Acct
SACRAMENTO 5,161,767 3,451,579 2,256,891
. as
HOLLISTER 425,198 284,322 180,669
SAN JUAN BAUTISTA 20,374 13,624 13,227
lf:1Sg:jl;4Nrzl;4aJ!!14<al4,lj,Jll
ADELANTO 363,196 242,862 15al,955
APPLEVALLEY 742,200 496,295 305,514
4,615,548 20,000 15,505,786 14,814,313 30,320,098
380,203
18,218
6,000
1 ,000
1,276,393 1,220,321
66,443 58,474
2,496,7-14
124,917
324,762
663,660
6 ,000
7 ,500
1,088,775 1,042,374
2,215,169 2,130,119
z,ta"l;tag
4,345,288

BIG BEAR LAKE
CHINO
49,283 32,955
930,778 622,394
24,768
38al,920
630,057
832,283
2,000
7,500
739,063 141443
2,774,874 2,671340
880,506
5,446,215

CHINO HILLS
COLTON

FONTANA
.GRAND TERRACE

HESPERIA

HIGHLAND
LOMA LIN[-A

MONTCLAIR

NEEDLES

ONTARIO

RANCHO CUCAMONGA

REDLANDS
RIALTO

SAN BERNARDINO

TWENTYNINE PALMS

VICTORVILLE

YUCAIPA

YUCCA V ALLEY
766,260
525,553
2 ,142,727
128,326
995166
558119
247,560
3 7al ,672
4 8,139
1,802,819
I ,720,579
718,453
1 ,032,052
2 ,181,324
276,449
773,709
1 ,378,608
536,122
215,346
512,384
351 ,428
1 ,432,802
85,809
665 449
373,204
165,539
2 48,530
3 2,190
1,205,512
1,150,520
480,416
690,114
1,458,612
184,856
51 7,365
921,850
358,495
143,998
315,262
217,736
872,960
56,793
408,007
230 931
105,103
155,389
24,304
735,241
701 ,920
295,893
422,953
888,598
116,808
318,281
563,365
222,018
92,051
685,174
469,939
1 ,915,983
114,746
889,857
499,059
2 21,363
3 32,34al
4 3,045
1,612,044
1 ,538,507
642,426
922,840
1 ,950,496
2 47,195
691 ,835
1 ,232,724
479,389
192,558
7,500
7,500
10,000
3,000
10,000
7,500
6,000
6,000
1 ,000
'10,000
"10,000
7,500
10,000
10,000
6 ,000
7 ,500
10,000
7,500
5,000
2,286,580
1572,157
6,37 4,472
388,675
2,968,479
1,668,812
745,564
1,113,932
148,679
5,365,616
5,121,527
2 ,144,687
3 ,077,960
6,489,031
831,308
2,308,690
4,106,548
1 ,603,524
648,953
2199,171
1 ,508,342
6,149,643
368,296
2,856,134
1 ,6C11 ,805
710,498
1 ,066,7C)1
138,160
5;174,105
4,938,076
2,061 ,965
2,961,998
6 ,260,418
7 93,411
2 ,220,552
3 ,956,617
1 ,538,673
618,045
4,485,751
3,080,499
12,524,al16
756,971
5,824,613
3,270,6al7
1 ,456,062
2 ,180,633
286,839
10,539,720
10,059,603
4,206,652
6,039,958
12,7 49,449
i,s:z<,zrg
4,529,242
8,063,165
3,142,197
1,266,998
1 5 January 2026
ColiFovnioCitgFinavrce.co Page 11 of 16
218

ATT ACHMENT B
Local Streets and Roads - Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections tstgmateayanuary 2026 Highway Users Tax Acct (HUTA)" Streets sa Highways Code Sec2103(3' Sec2l05(3' Sec2l06(3' Sec2l07(3' Sec2l07.5'4'

CARLSBAD

CHULA VISTA
10,000
10,000
1 ,017,279
2 ,459,984
493,455
1,186,466
760,737
1,839,a14
1 ,137,667
2 ,751;106
10,000
10,000
1 ,017,279
2 ,459,984
TOTAL Road Mntnc ToTAL
HUTA Rehab Acct
3,419,140 3,265,115
8,247,171 7,895,697
6,684,254
16,142,868

LEMON GROVE

NATIONAL CITT'
275,334
576,469
184,111
385,474
123,063
252,407
246,199
5-15,467
6 ,000
7 ,500
834,707 790,212
1,737,:318 1,654,471
1,624,919
3,391 ,789
POWAY

SAN DIEGO
492,528 329,345 216,353 440,409
13,774,419 9,210,703 5,921,244 12,316,810
7,500 1,486,135 i4al3,561
20,000 41,243,176 39,532,696
2,899,695
80,775,872
SANTEE

SOLANA BEACH
583,205
126,957
389,979
84,894
255,301
59,331
521,490
113,523
7,500
3,000
1 ,757 475 1673 803
387,705 364,368
3,431 ,278
7 073

SAN FRANCISCO

ESCALON

LATHROP
8,544,286 5,713,408 2,160,956 7,640,129 20,000 24,078,779 24,522,170 48,600,949 72,778
377,332
48,664
252,3al5
34,139
156,920
65,075
337,403
2,000
6,000
222,654
1,129,971
208,868
1 ,082,947
431 ,522
2,212,918

STOCKTON
TRACY
ill*.i**l

ARROYO GRANDE

ATASCADERO
3,137,042 2,097,683 1,269,490 2,805,080
960,195 642,065 391,900 858,587
179,369
301,115
"i19,941
201,350
93,657
153,969
160,388
269,251
10,000
7,500
4,000
6,000
9,319,294 9,003,336
2,860,248 2,755,768
557,355
931 ,685
514,790
864,203
18,322,630
5,616,016
1,072,144
1,795,888

GROVER BEACH

MORRO BAY
125,031
103,210
83,606
69,015
66,739
55,929
111 ,800
92,288
3,000
3,000
390,177
323,442
358,840
296,214
749,C117
619,656
SAN LUIS OBISPO 484,267 323,821 244,7CII 433,022 6,000 1,491,811 1,389,851 2,881,662 15 January 2026
Ca(iFov'vuaaCitgFivyonce.covv

219

ATT ACHMENT B
Local Streets and Roads - Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections estimated January 2026 H!gF1Wa7 USerS TaX ACCt (HUT " Streets & Highways Code Sec2103(3' Sec2l05(3' Sec2106(3' Sec2l07(3' Sec2107.5'4'

ATH ERTON

BELMONT
70,215
275,755
46,951
184,392
34,816
122,681
62,784
246,575
2,000
6,000
62,784
246,575
TOTAL Road Mntnc TOTAL
HUTA Rehab Acct
216,766
835,403
201,516
791,419
418,282
1 ,626,822

BURLINGAME
COLMA
308,467
14,489
206,266
9,688
136,665
10,994
275,825
12,956
6,000
1 ,000
933,223
49,126
885,303
41 ,583
1,818,526
90,709

HILLSBOROUGH

MENLO PARK
111188
333,817
74,349
223,218
52,3.31
147,502
99,422
298,493
3,000
6,000
340,290
1,009,030
319,110
958,058
659,399
1,967,088

PACIFICA

PORTOLA VALLEY
378,105
43,378
252,832
29,006
166,434
23,344
338,094
38,788
6,000
1 ,000
1,141,464 1,085,164
135,516 124,496
2,226,628
260,011

SAN BRUNO

SAN CARLOS
430,174
300,509
287,650
200,945
188,693
133,263
384,653
268,709
6,000
6,000
1,297;170
909,426
1 ,234,603
862,463
2,531 ,773
1 ,771,889

SOUTH SAN FRANCISCO

WOODSIDE

BUELLTON

CARPINTERIA
647,769
51 ,884
50,290
128,472
433,151
34,694
33,628
85,907
281,712
26,980
21 ,982
48,693
579,222
46,393
44,968
114,878
7,500
2,000
2 ,000
3 ,000
1 ,949,353
161,950
152,868
380,950
1,859,102
148,907
144,333
368,717
3,808,455
310,857
297,201
749,667
GuADALUPE
LOMPOC
86,531
435,492
57,862
291,206
34,363
153,586
77,375
389,409
2,000
6,000
258,132 248,346
1275,693 1,249,867
506,478
2,525,560

SANTA M ARIA

SOLV ANG
1 ,096,997
56,840
733,542
38,008
379,589
24,220
980,9al3
50,826
10,000
2,000
3,201,04al 3,148,391
171,893 163,132
6,349,433
335,026
' 5 January 2026
ColiFovviioCitgFivxance.co Page 13 of 16
220

ATT ACHMENT B
Local Streets and Roads - Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections tstimatedyanuaryzozs HtgtlWa7 USerS TaX ACCt (HUTA)l" Streets & Highways Code Sec2l03(3' Sec2l05(3' Sec2l06(3' Sec2l07(3' Sec2l07.5(4'

CAMPBELL

CUPERTINO
6 ,000
7 ,500
382,258
527,470
175,554
240,419
285,858
394,450
427,495
589,892
6 ,000
7 ,500
382,258
527,470
TOTAL Road Mntnc
HUTA Rehab Acct TOTA'
1,277,165 1,226,915
1,759,731 1,692,995
2,504,080
3,452,727

LOS ALTOS

LOS ALTOS HILLS

MILPITAS

MONTE SERENO
310,109
83,569
800,839
35,557
207,364
55,881
535,506
23,776
128,666
38,180
324,677
19,002
277,294
74,726
716,094
31 ,794
6,000
2,000
7,500
1 ,000
929,434 890,016
254,356 239
2,384,617 2,298,414
111130 102,049
1,819,450
494,200
4,683,031
213,179

MOUNTAIN VIEW

PALO ALTO
845,791
672,562
565,565
449,730
342,632
273,440
756,289
601,391
7,500 2,517,778 2,427,427
7,500 2,004,623 1930,258
4,945,205
3,934,8aal

SANTA CLARA

SARATOGA
SUNNY\/ALE

CAPITOLA

SANTA CRUZ
1,315,785
304,146
1,561,037
96,386
632,488
879,841
203,377
1,043,837
64,452
422,933
530,361
126,284
628,322
40,722
240,523
1 ,176,548
2 71,961
1,395,848
86,187
565,558
10,000
6,000
10,000
2,000
7,500
3 ,912,535 3,776,313
911,768 872,901
4 ,639,044 4,480,189
289,747 276,629
1,869,003 1,815,246
7,688,848
1 ,784,668
9,119,233
566,376
3,684,250

WATSONVILLE
i i@ '

ANDERSON

REDDING
506,509 338,693 193,572 452,910 7,500 1,499,al84 1,453,684 2,952,868 109,213
916,504
73,029
612,850
61 ,241
478,445
97,656
8al9,520
3,000
7,500
344;138 313,442
2,834,818 2,630,375
657,580
5,465,193
7 ,215
8 ,388
16,649
4 ,825
5 ,609
11,133
6,479
8,990
13,116
7,893
7,501
51,409
1,000
1 ,000
1 ,000
27,411
31 ,488
93,308
20,707
24,074
47,784
48118
55,562
-i41,091

FORT JONES

MONTAGUE
6,785
12,015
4,537
8,034
8,189
10,801
6,067
10,744
1 ,000
1 ,000
26,578
42,595
19,473
34,484
46,050
77,079

TULELAKE
WEED
8,799
28,537
5,884
19,083
9,195
19,054
7,868
66,673
1 ,000
1,000
32,745
134,347
25,253
81 ,903
57,998
216,249
15 January 2026
ColiFovviioCitgFivtavsce.co

221

ATT ACHMENT B
Local Streets and Roads Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections

BENICIA
DIXON
264,766
197,230
1 77,044
131 ,884
115,756
87,454
236,749
176,359
6,000
4,000
6,000
4,000
236,749
176,359
TOTAL Road Mntnc
HUTA Rehab Acct ToTAl
800,315 759,8al
596,928 566,053
1,560,196
1,162,980

RIO VISTA
SUISUN CITY"
101,069
287,956

VALLEJO

CLOVERDALE
COTAn
1,231 ,209
88,076
74,115
67,583
192,551
823,287
58,895
49,560
47,155 90,374
125,474 257,484
520,764 1,100,922
42,344 78,756
36,393 66,272
3,000
6,000
10,000
2,000
2,000
309,181 290,069
869,465 826 436
3,686,182 3,533,579
270,071 252,779
228,340 212,712
599,250
1 ,695,9 €)1
7,219,760
522,850
441 ,052

SEBASTOPOL
SONOMA
CERES

HUGHSON
73,548
105,292
491 ,072
77,987
49,180
70,407
328,371
52,148
36,151
49,682
196,504
35,244
65,765
94,150
439,106
69,734
2 ,000
3 ,000
226,645
322,532
211 ,084
302,190
WINDSOR 256,3alO 171 ,389 114,055 229;187 6,000 776,941 735,610 1,512,551 7,500 1,462,553 1,409,380
2,000 237,114 223,823
437 729
624,723
2,871 ,933
460,937
NEWMAN

OAKDALE
121,12al
227,117
80,991
15al,869
52,083
93,462
108,304
203,083
3,000
5,000
365,498
680,531
347,617
651 ,828
713,115
i ,332,359
RI\/E!!BANK

TURLOCK
255,068
706,046
170,559
472,120
104,373
280,426
228,077
6:31 ,332
6,000 764,077 732,047
7,500 2,097,425 2,026,359
1,496,124
4,123,784
63,138
460,575
54,051
96,805
40,210
263,108
35,124
59, 111
84,429
615,894
72,278
129,450
2,000 284,198
7,500 2,035,859
2 ,000
3 ,000 .
244,285
433136
270,989
i,976,807
231 ,988
415,49al
555,187
4,Oal2,666
476,273
848,627
15 January 2026
CaliFovvsioC itgFiravice.cowt

222

ATT ACHMENT B
Local Streets and Roads Projected FY2026-27 Revenues Based on State Dept of Finance statewide revenue projections Estimated January 2026 Highway Users Tax Acct (HUTA)" Streets & Highways Code Sec2103(3' Sec2l05(3' Sec2l06(3' Sec2l07(3' Sec2107.5(4' DINUBA
EXETER
254,432
101,186
170,134
67,661
97,041
41,484
227,508
90,479
6,000
3,000
6,000
3,000
227,508
90,479
TOTAL Road Mntnc
HUTA Rehab Acct TOTA'
755,116
303,810
730,223
290,406
1,485,339
594,216

LINDSAY

PORTERVILLE
124,405 83,188
621998 415,919
49,901 m,241
230,296 556,178
3,000
7,500
371,735 357,045
1,831,891 1785,140
728,780
3,6al7,031

VISALIA

WOODLAKE
SONORA

CAMARILLO

FILLMORE
1 ,436,925
78,261
50,867
691,910
166,542
960,845
52,331
34,014
462,667
111 ,364
525,735 1,284,869
33,172 69,979
33,782 45,484
300,384
75,947
6al8,692
148,919
10,000
2,000
2,000
7,500
4,000
4,218,375
235,743
166,147
4,123,986
224,609
8,342,361
460,352
145,989 312,135
2,081;153 1,985,786
506,771 477,977
4,066,939
984,748
OJAI
OXNARD
75,161 50,259
1,971,903 1,318,575
36,909 67,208
847,199 1,763,236
000
10,000
231,537 215,714
5,910,912 5,659,377
447,251
Il ,570,289

SAN BUENAVENTURA

SANTA PAULA
1,076,193
309,503
71 9,631
206,959
464,551
137,020
962,310
276,752
10,000 3,232,684 3,088,683
6,000 936,234 888,277
6,321 ,367
1 ,824,511
THOUSAND OAKS 1,239,910
lV#l<limj): ""
DAVIS 639,605
WEST SACRAMENTO 541,645
829,105
427,693
362,188
534,490 1,108,702
286,733 571,922
243,553 484,328
10,000 3,722,207 3,558,551 7,280,758
7,500 1,933,454
7,500 1,639,215
1,835,673
I ,554,527
3,769,127
3,193,742

WOODLAND
k'Jll:f-lm'WQ)l$$'

MARYSVILLE

WHEATLAND
602,455 402,851 270,357 538,703
128,668 86,038 46,017 115,052
39,223 26,228 17,365 35,073
7,500
3,000
1 ,000
Statewide Total $ 326,951,500 $ 218,626,500 $130,324,066 $ 298,737,000 $ 2,724,000 $ Notes:

1. The Highway Users Tax is also known as the "Motor Vehicle Fuel Tax", the "Gasoline Excise Tax" and "Article XIX Revenues."

2. Rolling Hills has no public streets and is therefore not eligible for HUTA or RMRA allocations.

3. Str&HwysCode §§ 2103, 2105, 2106, 2107 and RMRA amounts are paid monthly. Includes special payments for snow removal.

4. Str&HwysCode § 2107.5 amounts are typically paid by the State Controller once per year in luly. 1,821,866 1,729,051 3,550,917
378,776 369,278 748,054
118,888 112,571 231459
977,363,066 $938,353,500 $1,915,716,566
Th
Q 15 January 2026
CaliFovviioCitgFihavtce.co

223

ATTACHMENT C
Local Streets and Roads - Projected FY2025-26 Revenues Based on State Dept of Finance statewide revenue ' a EStimaTed JamJagY 2026 h USerS TaX ACCt" Streets & Hwys Code TOTAL ROad Maintnc Sec2l03't Sec2l04 Sec2'l05 Sec2l06 HUTA RehabAcct
ALAMEDACOUNTY 9,448,584 14,878 16 6747,060 450174 31 4134 26097421 ALPINECOuNTY 1 289 136703 20 629 1 504422
AMADORCOUNTY 931 41 785 575 21 189 129
TOTAL
Annual
57 1134
5 6183
Total $ 320,446,000 $ 414,674,9G18 $ 214,881,497 $ 35,151,413 $ 985,153.908 $ 885,086,500 $ 1,870,240,408 Nmsx.

1. The Highway Users Tax is also known as the "Motor Vehicle Fuel Tax", the "Gasoline Excise Tax" and "Article XIX Revenues." January 2026 ColrFovvsrr.CrtgFivtovsce.cow.

55a'224

ATTACHMENT D
Local Streets and Roads - Projected FY2026-27 Revenues BasedonStateDeptofFinancestatewiderevenue "
EstimatedJanuarv2026 hwa UsersTax Streets&HwysCode TOTAL RoadMaintnc SeC2l03(') SeC2104 SeC2105 SeC2106 HUTA RehabACCt
ALAMEDACOUNTY 9 ,403 15147 6,865780 457733 111 27
ALPINECOuNTY 186,334 289739 136790 21168 634 534780 AMADORCOUNTY 950146 585163 214 726
Total s 326,951500 s <;t,goz,ooo $ 218,626,500 $ 35,758,934 s 1,003,238,934 $ 938,353,500 TOTAL
Annual
59 779 40
1 168 10
5 $ 1,941,592,434
Notes:

1. The Highway Llsers Tax is also known as the "Motor Vehicle Fuel Tax", the "Gasoline Excise Tax" and "Article XIX Revenues." January 2026 CalrForvsraCitgFivovsce.com

F\I 225
Project Name Project Description Locations FY 2025/26 SB-1 Portion Fiscal Year Estimated
Useful Life
Estimated Project
Schedule

1. Annual Sidewalk
Grinding Program
The project will fund design
and construction for the
repair sidewalks on
residential streets.

Citywide $350,000 2026/27 15 years Complete
June 2027

2. Citywide Residential
Resurfacing Phase V
The project will fi_ind
construction for the
rehabilitation of residential
streets to extend the life of
aging roadway pavement,
per the City's Pavement
Management System, and
repair sidewalks.

See
Attacent $1,450,000 2026/27 20 years
Complete
June 2027

3. Citywide Residential
Resurfacing Phase VI
The project will fund design
for the rehabilitation of
residential streets to extend
the life of aging roadway
pavement, per the City's
Pavement Management
System, and repair
sidewalks.

Citywide $408,180 2026/27 20 years
Complete
June 2027

4. I
Citywide Sidewalk
Improvements Phase
XI
The project will fund design
and construction for the
reconstruction of sidewalks
on residential streets.

Citywide $400,000 2026/27 10 years
Complete
June 2027
City of South Gate
Local Streets and Roads Funding Program Project List FY 2026/27 ri
226
Attachment D
""o"'=
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, 63048.1 63048.75, 63048.8, and 63048.85 of, and to repeal and add Section 63048.65 of, the Govemtnent Code, to add Section 43021 to the Health and Safety Code, to amend Section 99312. I 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 (commencing with Section 11050) to Part 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 1 of, and to add Chapter 2 (commencing with Section 2030) and Chapter 8.5 (cornmencing 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.
[Approved by GovemorApril 28, 2017. Filed with
Secretary of State April 28, 2017.]

LEGISLATIVE COUNSEL'S DIGEST
SB 1, Beall. Transportation funding.
(1) Existing law provides various sources of funding for transportation purposes, 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 Department of Motor Vehicles and the Deparhnent 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 performance 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 94 227
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 adjushnent, 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 adjushnent, as provided, and a new $100 annual 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 aru'iually set aside $200,000,000 of the funds 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 continuously 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 annually 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 Legislahu'e, on state highway bridge and culvert maintenance and rehabilitation. The bill would require $5,000,000 of the fiinds available for the program that are not restricted by Article XIX of the California Constitution to be appropriated each fiscal year to the California Workforce Development Board to 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 aru'iually transferred to the State Highway Account for expenditure on the freeway service patrol program. The bill would require $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 Califomia State University, respectively, for the purpose 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 pursuantto a specified formula. The bill would impose various requirements on the deparhnent and agencies receiving these funds. The bill would authorize a city or county to spend its apportionment of funds under the program on transportation 94 5ol228
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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 Deparhnent 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 term, 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 depaitment, and would require an annual report to the Legislature and Governor.

This bill would require the deparhnent to update the Highway Design Manual to incorporate the "complete streets" design concept by January 1, 2018. The bill would require the deparhnent 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 various 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 would require 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 puipose from the Budget Stabilization Account. The bill would require 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 (PropositionlB) 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 fiu'ids.

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 Califomia Constitution requires gasoline excise tax revenues from motor vehicles traveling upon public 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, agriculhu'al vehicles, and off-highway vehicles, to particular accounts and funds for expenditure 94 (,O229
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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 Article XIX of the California Constitution.

This bill, comrnencing 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 use tax on diesel and decreases the excise tax, as provided. Existing law requires the State Board of Equalization to aru'iually 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 (1) 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 revenues 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 purposes under the State Transit Assistance Program. Existing law provides for appropriation of other revenues in the account to the Department ofTransportation for various other transportation purposes, including intercity rail purposes.

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.5oA rate increase to be continuously appropriated to the Transportation Agency for intercity rail and commuter rail purposes.

The bill would also allocate poitions 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 ceitain compact assets, as defined, from designated tribal compacts relative to Indian gaming, and 94 230
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authorized the compact assets to be sold by the Infrasti'ucture and Economic Development Bank to a special purpose trust in order to generate state revenues. Existing law designated certain of these revenues to be used to repay ceitain loans of transportation funds that were made to the General Fund.

This bill would delete the references to the special purpose trust and revise payments to various 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 eyery other year for the expenditure of transportation capital improvement fiinds 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 department 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 Transportation 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 cornrnission, as part of its review of the program, to hold at least one hearing in northem California and one hearing in southern California regarding the proposed program. The bill would require the deparhnent 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, and would require the depaitment 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 determines are necessaiy to ensure that projects are not unnecessarily delayed.
(10) Existing law generally provides for transportation capital improvement projects to be nominated and programmed through 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 would create the Solutions for Congested Corridors Program, with funding appropriated for the program from a poition of the new 94 (/2.-231
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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 corridors throughout the state and that are part of a comprehensive corridor plan. The bill would provide for regional transportation agencies and the Department of Transportation to nominate projects, with preference to be given to projects that demonstrate collaboration between the regional agencies and the department. (11) The Califomia 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 report on a project that it proposes to carry 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 a projectthatmay have a significant effect on the 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 other things, 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 from vehicular and nonvehicular sources. Existing law generally designates the State Air Resources Board as the state agency with the primary responsibility for the control of vehicular air pollution.

This bill would prohibit, except as specified, the requiring of the retirement, 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 v3232
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diesel particulate matter, oxides of nitrogen, and other criteria pollutants from in-use diesel-fueled vehicles. The bill would authorize the deparhnent to allow registration, or renewal or transfer of registration, for any diesel-fueled vehicle that has been reported to the StateAir Resources Board, and is using an approved exemption, or is compliant with applicable air pollution control technology requirements, pursuant to specified provisions.

Existing law authorizes the department, in its discretion, to issue a temporary 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 department by the owner or other person in lawful possession of the vehicle.

This bill would additionally authorize the deparhnent to issue a temporary peimit to operate a vehicle for which registration is otherwise 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 itnmediately 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,citiesandcountiesfacea$78billionshortfalloverthenext 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) California 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 fuhire, 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) Improvingtheconditionofthestate'sroadsystemwillhaveapositive impact on the economy as it lowers the transportation costs of doing business, 94 233
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reduces congestion impacts for employees, and protects property values in the state.
(i) The federal government estimates that increased spending on infrastnicture 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 infrastnicture.
(l) 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) Fifteen billion dollars ($15,000,000,000) to local street and road maintenance.
(B) Seyenbillionfivehundredmilliondollars($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 under 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 culveit 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 corridor relief.
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(E) Eight hundred million dollars ($800,000,000) for parks programs, off-ighway vehicle programs, boating programs, and agricultural programs. (F) Two hundred seventy-five million dollars ($275,000,000) for the interregional share of the State Transportation Improvement Program. (G) Two hundred fifty million dollars ($250,000,000) for freeway service patrols.
(H) Seventy million dollars ($70,000,000) for transportation research at the University of California and the California State University. (n) ItistheintentoftheLegislaturethattheDeparhnentofTransportation meet the following preliminary performance 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 Legislature 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 corridors and in the most congested commute corridors. (p) Constitutionally protecting the funds raised by this act ensures that these funds are to be used only for transportation purposes necessary to repair roads and bridges, expand the economy, and protect nahiral resources. (q) This act advances greenhouse gas reduction objectives and other environmental goals by focusing on "fix-it-first" projects, inveshnents in transit and active transportation, and suppoiting Senate Bill 375 (Chapter 728, Statutes of 2008) and transportation plans.

SEC. 2. This act shall be ka'iown, and may be cited as, the Road Repair and Accountability Act of 2017.

SEC. 3. Section 14033 is added to the Govenunent Code, to read:
14033. On or before Januaiy 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 Govemment Code, to read:
14110. Consistentwithfederalandstatelawsandregulations,including, but not limited to, the department's goal setting methodology as approved by the Federal Highway Administration, the deparhnent shall develop a plan by January 1, 2020, to increase by up 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 include the use of targeted media, including minority and women 94 235
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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 Part 5 of Division 3 of Title 2 of the Govenunent Code, to read:

CHAPTER 5. DEPARTMENT 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 deparhnent, and external 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) The department's programs are functioning consistent with applicable accounting standards and practices and are administered effectively, efficiently, and economically.
(3) The department's management is accomplishing depaitmental 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 Secretaiy of Transportation, the Legislature, the California Transportation Commission, and the director and chief deputy director of the department are fully informed concerning fraud, improper activities, or other serious abuses or deficiencies relating to the expenditure of transportation 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 teim, have the title of Inspector General, and be subject to Senate confirnnation. The Inspector General may not be removed from office during that ternn, 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 dociunent. (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 requirements:
(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 Govemor, 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 Legislature. 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 external 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 audits and investigations of activities involving state transpoitation 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 Government Code is amended to read:
14526.5. (a) Basedontheassetmanagementplanpreparedandapproved pursuant to Section 14526.4, the depaitment shall prepare a state highway operation and protection program for the expenditure 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 I of the year following submission of the program, but which have not yet been funded. The program shall include those projects for which constniction is to begin within four fiscal years, starting July 1 of the year following the year the program is submitted.
(c) (l) 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 environmental documents, support only. (B) Plans, specifications, and estimates, support only. (C) Rights-of-way.
(D) Construction.
(2) The deparhnent shall specify, for each project in the state highway operation and protection program, a projected delivery date for each of the following components:
(A) Project approval arid environmental document completion. 94 237
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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 department shall make a draft of its proposed program available to transportation planning agencies for review and comment and shall include the comments in its submittal to the commission.

The department shall provide the commission with detailed information 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 adequacy, consistency with the asset management plan prepared and approved pursuant to Section 14526.4 and funding priorities established in Section 167 ofthe Streets and Highways Code, the level of annual funding needed to implement the program, and the impact of those expenditures 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 l of each even-numbered year. The commission may decline to adopt the program ifthe 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 California regarding the proposed program.
(g) On or after July 1, 2017, to provide sufficient and transparent oversight of the department's capital outlay support resources composed of both state staff and contractors, the commission shall be required to allocate the department's capital outlay support resources by project phase, including preconstniction. Through this action, the commission will provide public transparency for the deparhnent's budget estimates, increasing assurance that the annual budget forecast is reasonable. The commission 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 theAdrninistrative ProcedureAct (Chapter

3.5 (commencing with Section 11340) of Part l).
(h) Beginning July 1, 2017, for a project that experiences increases in capital or suppoit 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 commission'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 commission 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) The depaitment shall incorporate the performance targets in subdivision (n) of Section l 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 include targets adopted by the commission in consultation with the department for each asset class included in subdivision (n) of Section l ofthe 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 depa rhnent'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 deparhnent 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 l 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 transpoitation accounts for the purposes specified in Section 16321.

SEC. 9. Section 16321 is added to the Govemment 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 XW ofthe California Constitution no later than June 30, 2020, and upon repayment of this amogit 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 Deparhnent 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 Part 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 Government Code is repealed.

SEC. 11. Section 63048.65 is added to the Govemment Code, to read:
63048.65. (a) Prior to July 1, 2015, three 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 Govemment Code is repealed.

SEC. 15. Section 63048.75 of the Government Code is repealed.

SEC. 16. Section 63048.8 of the Government Code is repealed.

SEC. 17. Section 63048.85 of the Government Code is repealed.

SEC. 18. Section 43021 is added to the Health and Safety Code, to read:
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:
(l) Thirteen years from the model year the engine and emission control system are first certified foruse 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:
(l) Safety programs, including, but not limited to, those adopted pursuant to Section 34501 of the Vehicle Code.
(2) Voluntary 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 use by the state board or 94 240
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other applicable state and federal agencies, is sufficient to show that immediate corrective action is necessary to prevent injury, illness, or death. (c) This section only applies to laws or regulations adopted or amended after Januaiy 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 tnick 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 stationaiy 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 study, 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) RevenuestransferredtothePublicTransportationAccount 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) Fifly percent for allocation to transportation planning agencies, county transportation 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 revenues transferred to the Public Transportation Account for the State Transit Assistance Program that are attributable to subdivision (a) ofSectionll053 oftheRevenueandTaxationCodeareherebycontinuously 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 construction of new vehicles or facilities that improve existing transit services.
(3) Transit services that complement local efforts for repair and improvement of local transportation infrastnichire. (d) (1) Prior to receiving an apportionment 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 ofprojects 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 report, shall apportion funds pursuant to Sections 99313 and 99314. (e) For each fiscal year, each recipient transit agency receiving an apportioru'nent of funds pursuarit 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 funds 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 aiu'iual revenues under this section shall be allocated by the Transportation Agency to the public agencies, including joint powers agencies, responsible for state-supported intercity rail services.

A minimum of25 percent ofthe 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 governing the administration of the funds available under this subdivision, including provisions providing authority for loans ofthese funds by mutual agreement between intercity rail service corridors.
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(b) (1) Fifty percent of available aruiual 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 cornrnuter rail service providers that provide regularly scheduled commuter rail service.

Commencing July 1, 2020, the funds 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 service 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 fiu'ids made available by this section may be used for operations and capital improvements.

SEC.21. Section99312.4isaddedtothePublicUtilitiesCode,toread:
99312.4. Revenues transferred to the Public Transportation Account pursuant to subdivision (a) of Section 11053 of the Revenue and Taxation Code for the Transit and Intercity Rail Capital Program (Part 2 (comrnencing with Section 75220) of Division 44 of the Public Resources Code) shall be available for appropriation to that program pursuant to the aruiual Budget Act.

SEC. 22. Section 99314.9 is added to the Public Utilities Code, to read:
99314.9. The Controller shall compute quarterly 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 pait, 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) ExceptasprovidedbySection6357.3,inadditiontothetaxesimposed by this part 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 l'l 243
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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 Transpoitation Fund for allocation under the State Transit Assistance Program pursuant to Section 99312. l 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 Deparhnent 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 pursuant 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 itnposed 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) Except as provided by Section 6357.3, in addition to the taxes imposed 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) (l) 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. l 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 Deparhnent 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 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 1'5' 244
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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 (l), on and after the date ofthe reduction, shall be recalculated by an amount so that the combined state rate iu'ider paragraph (1) and the federal tax rate per gallon equal twenty-seven cents ($0.27).
(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 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-12'fiscalyearandeachfiscalyearthereafter,theboard shall, on or before March 1 of the fiscal year immediately preceding the applicable fiscal year, adjust the rate in paragraph (1) in that manner as to generate an amount of revenue that will equal the amount of revenue loss attributable to the exemption provided by Section 6357.7, 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 adjushnent 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 revenue gain or loss for the fiscal year ending prior to the rate adjushnent 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) CommencingJulyl,2019,theadjustmentsinparagraphs(2)and(3) shall cease, and the rate imposed by this subdivision shall be the rate in paragraph (1).
(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 1 thereafter, 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 adjushnent 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 94 245
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equal to the increase in the California Consumer Price Index from November 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 enacted by 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 determined 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 on November 1, 2017, on tax-paid motor 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 fiiel in this state to a person who subsequently uses the motor vehicle fuel. (3) "Storing" includes the ownership or possession of tax-paid motor vehicle fuel outside of the bulk transfer/ternninal system, including the holding oftax-paid motor vehicle fiiel 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 ternninal 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 vehicle 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 return 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 information that the board deems necessary for the proper administration of this part. The retui'n 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,andexceptasotherwise provided in subdivision (b), there shall be transferred from the money 94 Il 246
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deposited to the credit of the Motor Vehicle Fuel Account to the Harbors and Watercraft Revolving Fund, for expendihire in accordance with Division l (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 amount 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 formula and method of the December 1972 report prepared for this purpose and submitted to the Legislahire on December 26, 1972, by the Director of Transportation. If the amount transferred 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 transferred from the Motor Vehicle Fuel Account to the Harbors and Watercraft Revolving Fund. No adjushnent 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) (l) 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, arid 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. Section8352.5oftheRevenueandTaxationCodeisomended to read:
8352.5. (a) (l) Subject to Sections 8352 and 8352.1, and except as otherwise provided in paragraph (1) of subdivision (b), 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 94 247
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year to persons entitled to refunds for agricultural off-highway use pursuant to Section 8101. 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 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 Deparhnent 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 Agriculture shall jointly prepare, or cause to be prepared, a report 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. Section8352.6oftheRevenueandTaxationCodeisamended to read:
8352.6. (a) (1) Subject to Section 8352.1, and except as otherwise provided 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 fuel 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 subdivision (b) of Section 7360 and otherwise to be deposited in the Off-Highway Vehicle Tnist Fund pursuant to paragraph (l) 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 adjushnent pursuant to subdivision (d) of Section 7360, and Section 7361.2, and otherwise 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 thirty-three thousand dollars ($833,000) from the monthly transfer to the Off-Highway Vehicle Trust Fund pursuant to paragraph (1), and transferthat amount to the General Fiu'id.
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(b) The amount transfened 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 Deparhnent of Transportation in cooperation with the Department of Parks and Recreation and the Deparhnent 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 (commencing with Section 38000) of the Vehicle Code.
(2) The number of registered street-legal vehicles that are anticipated to be used 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 motorized recreation 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 foiu'id 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 Transpoitation 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 of vehicles registered under Divisionl6.5 (commencing with Section 38000) of the Vehicle Code may occur.
(e) In the 2014-15 fiscal year, the Deparhnent of Transportation, in consultation with the Department of Parks and Recreation and the Department of Motor Vehicles, shall undertake a study to detem'iine the appropriate adjustment to the amoiu'it 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 6U249
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department 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:

CHAPTER 6. TRANSPORTATION IMPROVEMP.NT 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 purposes.
(2) The research, planning, construction, 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:
(l) 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 Departtnent 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 depaitment shall collect the fee at the same time and in the same manner as the deparhnent 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 94 250
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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 puiposes 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 deternnined by the department pursuant to Sections 10753, 10753.2, and 10753.5, using the following schedule:
(1) 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) and thirty-four thousand nine hundred ninety-nine dollars ($34,999), a fee of one hundred dollars ($100). (4) Vehicles with a vehicle market value range between thirty-five thousand dollars ($35,000) and fifty-nine thousand nine hundred ninety-nine dollars ($59,999), a fee of one hundred fifly 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 eveiy Januaiy l thereafter, the deparhnent shall adjust the transportation improvement fee imposed under subdivision (a) by increasing the fee for each vehicle market range in an amount equal to the increase in the Califomia 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 itnposed in subdivision (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 depaitment to the Controller for deposit as follows:
(a) Comrnencing with the 2017-18 fiscal year, three hundred fifty million dollars ($350,000,000), plus an annual increase for inflation as determined 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 three 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 94 251
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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 ofthe Public Resources Code), pursuant to Section 99312.4 ofthe 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) Comrnencing with the 2017-18 fiscal year, two hundred fifly million 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 fifty 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 omended 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) Ifthefederalfueltaxisreducedbelowtherateoffifteencents($0.15) 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) shall be increased by an amount so that the combined state rate under paragraph (l) 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 pursuant 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 eveiy July I thereaffer, the State Board of Equalization 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 adjushnent 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 Deparhnent 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 California Consumer Price Index from November 1, 2017, to November 1, 2019. Subsequent annual adjustments shall cover subsequent 12 month 94 03252
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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 California Consumer Price Index calculation and adjusttnent 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 fuel 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/terminal 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 purchased from and invoiced by the seller, and tax-paid diesel fuel removed from a terminal 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. On or before Januaiy 1, 2018, each person subject to the storage tax imposed under Section 60050.2 shall prepare and file with the board, in a fornn prescribed by the board, a retum 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 necessaiy for the proper administration of this part. The retum shall be accompanied by a remittance payable to the board in the amount of tax due.

SEC.35. Article2.5(commencingwithSection800)isaddedtoChapter 4 of Division 1 of the Streets and Highways Code, to read:

Article 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 OoR253
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environmental requirements, to accelerate project delivery, and to fully mitigate environmental impacts from transportation infrastnucture projects.

The depa itment shall consult on all activities pursuant to this article with the Department of Fish and Wildlife, including activities pursuant to Chapter 9 (commencing 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 deparhnent 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 planning and implementation of projects in the Advanced Mitigation Program. (c) The aruiual 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 deferred maintenance on the state highway system and the local street and road system. Funds made available by the program shall be prioritized for expenditure on basic road maintenance and road rehabilitation projects, and on critical safety projects. (b) (l) Funds made available by the program shall be used for projects that include, but are not limited to, the following:
(A) Road maintenance and rehabilitation.
(B) Safety projects.
(C) Railroad grade separations.
(D) Complete street components, including active transportation purposes, 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 use 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 department and cities and counties receiving funds under the program shall use advanced technologies and communications systems in transportation infrastnicture that recognize and accommodate advanced automotive 94 254
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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 infrastmcture-to-vehicle communications for transitional or full 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 department and cities and counties receiving funds under the program shall include features 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 altemative facilities, and where feasible, the deparhnent and cities and counties receiving funds 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 l of Division 3 of Title 2 of the Government Code).
2031. The following revenues shall be deposited in the Road Maintenance 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 ofthe 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. 94 255
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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 Road Maintenance and RehabilitationAccount shall be set aside annually for counties that have 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 deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.
(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation to each eligible coiu'ity and each city in the county for road maintenance and rehabilitation purposes pursuant to Section 2033. (b) After 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 Transportation 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 aru'iually 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 94 256
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Controller shall each month set aside one-twelfth of this amount, to accumulate a total oftwenty-five million dollars ($25,000,000) in each fiscal year.
(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a), (b), (c), and (d), in the 2017-18, 2018-19, 2019-20, 2020-21, and 2021-22 fiscal years, from revenues in the Road Maintenance and Rehabilitation Account 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 carry out the projects that are fiinded 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 purposes 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 aru'iual 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 aru'iually for expenditure, upon appropriation by the Legislature, by the depaitment for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, to acciunulate 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 purpose of conducting transportation 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 Secretaiy of Transportation and the chairs of theAssembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.
(h) NotwithstandingSectionl3340oftheGovernmentCode,thebalance of the revenues deposited in the Road Maintenance and Rehabilitation Account are hereby continuously appropriated as follows:
(l) 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) FiftypercentforapportioiunenttocitiesandcountiesbytheController pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of 94 257
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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 Legislature 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 depa rhnent 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 deparhnent 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 ofthe act enacting this section. The commission may make recommendations for improvement and may withhold fuhire 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 ofthe 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, transportation planning agencies, county transportation commissions, and other local agencies, shall develop guidelines for the allocation of fiu'ids pursuant to subdivision (a) of Section 2032. (b) The guidelines shall be the complete and full 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 department shall develop a grant guide and shall consult with the State Air Resources Board, the Governor's Office of Planning and Research, and the Deparhnent of Housing and Community Development in the development of the grant 94 258
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guide, and shall provide status reports as it administers these funds. The grant guide shall be exempt from theAdministrative ProcedureAct (Chapter

3.5 (commencing with Section 11340) of Part l of Division 3 of Title 2 of the Govemment Code).
2034. (a) (1) Prior to receiving an apportionment of fiinds 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 proposedto be funded with 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 supervisors at a regular public meeting. The list of projects proposed to be fiu'ided 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 ind 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 pursuant 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 puiposes 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 repoited to the Controller pursuant to Section 2151. For purposes of this subdivision, in calculating a city's or county's annual general fiind expenditures 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 expenditures 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 Government Code), may not 94 qt)259
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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 provided pursuant to Section 2151, for the 2009-10, 2010-11, and 2011-12 fiscal years. Each city and coumy shall fumish the data to the Controller not later than 120 days after receiving the request. The Controller may withhold payment to cities and counties that do not comply with the request for infornnation or that provide incomplete data.
(e) The Controller may perfornn 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 rehirned as a result of a failure to comply with subdivision (b) shall be reapportioned to the other coiu'ities 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 amoiu'it required to be expended for those fiscal years for purposes of complying with subdivision (b).
2037. A city or county may spend its apportionment of fiinds 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 forth by the board. The board shall also establish a preapprenticeship development and training grant program, begiru'iing January 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 compete for such grants and may apply in partnership 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 California Partnership Academies and by the California 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 construction 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 constniction trades. (e) Include a plan for outreach to individuals in the local labor market area and to formerly incarcerated individuals to provide pathways to employment and training.
(f) Coordinate with local state-approved apprenticeship programs, local building trade coiu'icils, and to the extentpossible the Califomia Conservation Corps and certified community conservation corps, so individuals who have completed these programs have a pathway to continued employment.

SEC. 37. Section 2103. l is added to the Streets and Highways Code, to read:
2103. 1. (a) Notwithstanding subdivision (b) of Section 2103, the portion 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 adjusted pursuant 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) FiflypercenttotheTradeCorridorsEnhancementAccountpursuant 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. Notwithstanding Section 13340 of the Governrnent Code, a sum 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 '31 261
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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-five percent of the funds payable under this section shall be apportioned among the coiuities monthly in the respective proportions 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) For purposes of apportionment under this subdivision, the Department of Motor Vehicles shall, as soon as possible after the last day of each calendar month, fiimish 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 computed monthly as follows: The niunber of miles ofmaintained coiu'ity 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, affer the foregoing apportionments, shall be apportioned among the counties in the 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 coiu'ity 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 fiu'id, 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 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, 94 "13262
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provided the cash is replaced once this suspension is repaid in September of 2008. Counties 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 accrued and reflected from the appropriate funding 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 January, 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 fiinds 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 expendihire is required to be accnied and reflected from the appropriate funding source for which the money was received and to meet all the requirements of its fiinding 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 siun 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:
(1) One million dollars ($ 1,000,000) for apportionment to all counties, including a city and county, 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 apportioiunent to all counties, including a city and county, 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 proportion 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 (l) 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 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 fiu'ids 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 l of Title 2 of the Govemment 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 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 accnied and reflected 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 counties or cities pursuant to this section collected during the months of January, February, 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 city or county may make use of any cash balance 94 264
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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 Port Security Bond Act of 2006 (Chapter 12.49 (commencing with Section 8879.20) of Division 1 of Title 2 of the Goveri'unent 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.
(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. 40. Section 2106 of the Streets and Highways Code is amended to read:
2106. Notwithstanding Section 13340 of the Goverent Code, a sum equal to the net revenue derived from 5.3 percent of the per gallon tax under the Motor Vehicle Fuel License Tax Law (Part 2 (commencing with Section 7301) of Division 2 ofthe Revenue and Taxation Code) shall be apportioned monthly from the Highway Users Tax Accoiu'it 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 coiu'ity 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 hiu'idred 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:
(1) 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 apportioru'nent of funds under subdivision (d) of Section 2104. (2) For each county, the percentage of the total assessed valuation 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 property, for purposes 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 94 265
Ch. 5 - 40 -
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) Thedifferencebetweenthebasesumforeachcountyandtheamount apportioned 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 under 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 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 l of Title 2 of the Governrnent 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 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 expendihires must be accnied 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 transfer 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 revenues 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 Govemment Code (bond act)) for local streets and roads maintenance, during the period ofthis suspension, and the use ofthis cash shall not be considered as an expenditure of bond act funds, if the cash is replaced when the payments that are suspended piu'suant to this subdivision are repaid in May 2009.
94 '11
266
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(3) This subdivision shall not affect any requirement that an expenditure is required to be accnied 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 (comrnencing with Section 8601) of Division 2), and 11.5 percent under 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 Highway Users TaxAccount in the Transportation Tax Fund as provided in this section.
(b) From the sum determined pursuant to subdivision (a), the Controller shall allocate annually to each city that has filed a repoit containing the infoimation prescribed by subdivision (c) of Section 2152, and that had expenditures in excess offive thousand dollars ($5,000) during the preceding fiscal year for snow removal, an amount equal to one-half of the amount of its expendihires for snow removal in excess offive 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 ofthe 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 Rob267
Ch. 5 - 42 -
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 expenditure 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, February, 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 expendihire 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 expenditure 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 funding sources.

SEC.42. Section2192.4isaddedtotheStreetsandHighwaysCode,to read:
2192.4. The Trade Corridor Enhancement Account is hereby created in the State Transportation Fund to receive fiu'ids 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 Legislature 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 multirnodal approaches that seek to reduce congestion by expanding travel choices, 94 "1"7268
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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:
(l) The North Coast Corridor improvements along Route 5 and the parallel rail corridor in the County of San Diego. (2) The Route 91 and Metrolink rail corridor improvements in the County of Riverside.
(3) Emerging solutions for the Route 101 and Caltrain corridor 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 (commencing with Section 2390) is added to Division 3 of the Streets and Highways Code, to read:

CHAPTER 8.5. CONGESTED CORRIDORS
2390. The Solutions for Congested Corridors Program is hereby created. 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 California Transportation Commission to projects designed to achieve a balanced set of transportation, environmental, and community access improvements within highly congested travel corridors throughoutthe state.

Funding shall be available for projects that make specific performance 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 presening 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 Governrnent Code, and other non-general purpose lane improvements primarily designed to improve safety for all modes of 94 269
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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 Govenunent 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 fiu'ids 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 department and local or regional paitners that reflect a comprehensive approachto 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 forth in this chapter. In addition to being included in a corridor plan, a nominated project shall also be included in the region's regional transpoitation plan. Projects within the boundaries of a metropolitan plaru'iing organization must be included in an adopted regional transportation plan that includes a sustainable commiu'iities 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 proposed project is consistent with the objectives ofthe 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 ofthe Statutes of2008).
(f) Efficient land use.
(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 may cover amultiyear programming period. Subsequent programs of projects shall be adopted on a biennial basis consistent with available fiu'ids for the program, and may include 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 (commencing with Section 11340) of Part I of Division 3 of Title 2 of the Govemment Code). Prior to adopting the guidelines, the commission shall conduct at least one public hearing in northern California 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 transportation policy 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 Legislature prepared pursuant to Section 14535 of the Government 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 summary describing the overall progress of the project since the initial award.
(b) Expenditures 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 measurements 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 departtnent 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 poiu'ids, 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 (c), for diesel-fiieled 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 (,02..271
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:
(l) The department shall refuse registration, or renewal or transfer of registration, for a diesel-fiieled 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 January 1, 2021, vehicle model years 2007 and older. (C) Effective January 1, 2023, vehicle model years 2010 and older. (2) The department shall refiise 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 Januaiy 1, 2020, vehicle model years 2000 and older. (B) Effective January 1, 2021, vehicle model years 2005 and older. (C) Effective January 1, 2022, vehicle model years 2007 and older. (D) Effective Januaiy 1, 2023, vehicle model years 2010 and older. (c) (1) AsdeterminedbytheStateAirResourcesBoard,notwithstanding effective dates and vehicle model years identified in subdivision (b), the department 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, including 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. Section 4156 of the Vehicle Code is amended to read:
4156, (a) Notwithstanding any other provision of this code, and except as provided in subdivision (b), the depaitment in its discretion may issue a temporary permit to operate a vehicle when a payment of fees has been accepted in an amount to be determined by, and paid to the deparhnent, by the owner or other person in lawful possession of the vehicle. The permit shall be subject to the ternns and conditions, and shall be valid for the period oftime, that the departtnent shall deem appropriate under the circumstances. (b) (1) The deparhnent shall not issue a temporary permit pursuant to subdivision (a) to operate a vehicle for which a certificate of compliance is required 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 temporaiy permit may be issued pursuant to this subdivision to a vehicle owner in a two-year period.
(3) A temporary permit issued pursuant to paragraph (1) is valid for either 60 days afterthe expiration ofthe registration ofthe vehicle or 60 days after 94 t03272
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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 permit issued pursuant to paragraph (1) is subject to Section 9257.5.
(c) (1) 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) Only one temporary permit may be issued pursuant to this subdivision for any vehicle, iu'iless otherwise approved by the StateAir Resources Board. (3) A temporary pernnit issued pursuant to para@aph (1) is valid for either 90 days after the expiration ofthe registration of the vehicle or 90 days after the date that vehicle is removed from nonoperation, whichever is applicable at the time the temporary pernnit is issued.
(4) A temporary permit issued pursuant to paragraph (l) 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 and Taxation Code, commencing July 1, 2020, a road improvement fee of one hundred dollars ($100) shall be paid to the department 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 1 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 Califomia Consumer Price Index for the prior year, except the first adjustment shall cover the prior six months, 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 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 Consiuner Price Index calculation and adjushnent 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 pui'poses of this section, "zero-emission motor vehicle" means a motor vehicle as described in subdivision (d) of Section 44258 of the 94 (o'} 273
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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 fiind 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 ofzero- 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 otherwise 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 Deparhnent of Transportation, the Department 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 theAdministrative ProcedureAct (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government 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
94 (05-274
Office of the
South Gale Ctty Cleik
Item No. 8
JUN - 'l 2026
FILED Cig of South Gate

CITY COUNCIL

AGENIDA BJILL
For the Regular Meeting of: June 9th, 2026
Originating Department: Public Works
DeparttnentHead:
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Cdy Matiager: 'ic9%ttsr-t7i(.

Arturo Cervantes Rob Houston
SUBJECT: AMENDMENT N0. 1 TO CONTRACT N0. 2022-83-CC, WITH UNITED PACIFIC SERVICES, INC. FOR A CONTRACT EXTF,NSION AND MODIFICATION

OF THE CITY'S TREE TRIMMING CYCLE FROM FOURYEARS TO FIVE YEARS PURPOSF,: To approve Amendment No. 1 to Agreement for Citywide Tree Maintenance, Contract No, 2022-83-CC ("Agreement"), with United Pacific Services, Inc. (UPS), extending the contract term through June 30, 2027, and modifying the tree trimming cycle ftom a four-year cycle to a five-year cycle to better align with current operational and budgetary conditions.

RECOMMENDED ACTION: The City Council will consider:
a. Approving Amendment No. l to the Agreement with Uited Pacific Services, Inc., extending the agreement through June 30, 2027, for continued citywide tree maintenance services and modifying the tree trimtning cycle from a four-year cycle to a five-year cycle, for a riotto exceed amount of $859,955; and b. Authorizing the Mayor to execute Amendment No. 1 to the Agreement, Contract No. 2022-83-CC, in a form acceptable to the City Attorney.

FISCAL IMPACT: Amendment No. 1 is in the amount of $859,955 and it w'll be funded as summarized below. The total revised contract amount is $4,649,542.

Contract Year
General
Fund
Street Lighting &
Landscape
Total
FY 2022/23 $127,500 $7i8,123 $845,623
FY 2023/24 $127,500 $776,523 $904,023
FY 2024/25 $127,500 $1,035,098 $1,162,598
FY 2025/26 $127,500 $749,803 $877,303
FY 2026/27 - Amendment No. 1 $127,500 $732,455 $859,955 Total $637,500 $4,012,002 $4,649,502
ANALYSIS: Under the Agreement, United Pacific Services, Inc. ("UPS") provides compreherisive tree maintenance services, including grid trimming, tree removal, emergency response services, and ongoiiig maintenarice of the City's urban forest. The agreement establisl'ies a four-year grid trimming cycle and includes a provision allowing the contract to be extended annually in one-yeat terms up to four times, subject to City Council approval. 1 275
In accordance with the contract provisions, staff negotiated a contract extension with UPS through June 30, 2027, to provide citywide tree maintenance services under modified service levels while maintaining the same terms and conditions established under the original agreement.

As part of evaluating the proposed extension, staff reviewed the long-term sustainability of the City's tree maintenance program considering the City's current budgetary constraints, including the projected $9.4 million General Fund deficit for Fiscal Year 2026/27. To help reduce operational costs while maintaining essential services, staff is recommending via Amendment No. 1 transitioning the City's tree trimming program from a four-year cycle to a five-year cycle beginning July 1, 2026, coinciding with the start of the extension term and Fiscal Year 2026/27.

The proposed adjustment is anticipated to reduce annual trimtning quantities and associated costs by approximately $127,348 while continuing to maintain the City's ability to respond to hazardous tree conditions, emergency requests, and resident concerns. Palm tree trimming and emergency response services will continue under their existing maintenance practices and will not be impacted by the proposed change.

Approval of the proposed amendment will allow the City to continue uninternupted tree maintenance services while implementing a more cost-effective and operationally sustainable trirnrning program. UPS has continued to perform services in accordance with contract requirements and has supported the maintenance of over 17,500 trees located throughout City streets, parks, and public facilities.

BACKGROUND: The City owns and maintains an urban forest consisting of more than 17,500 trees located throughout public streets, parks, and City facilities. These trees require ongoing maintenance to support public safety, tree health, visibility, and protection of public infrastructure
The Public Works Department oversees the City's urban forestry program through the services of a contracted tree maintenance provider. On September 27, 2022, the City Council approved the Agreement with UPS with a four-year term and a four-year trimming cycle, in an amount not to exceed $3,789,547. Amendment No. 1 extends the contract term and transitions from a four- year to a five-year cycle.

Staff worked with the contractor to assess transitioning from a four-year to five-year tree trimming cycle. Tree trimming cycles are periodically reviewed to balance service levels, operational needs, risk management, and available funding. Under the current four-year cycle, approximately 14,000 parkway trees are trimmed unevenly by geographic zones, resulting in fluctuating annual workloads and costs, with Fiscal Year 2026/27 representing one of the most labor-intensive years. The proposed five-year cycle would distribute trimming activities more evenly, creating a more balanced and sustainable maintenance program while reducing annual costs by approximately $127,348.

The contract will continue to include funding for special tree trimming services to address hazardous conditions, priority locations, emergency response work, and resident service requests outside of the regular trimming cycle. Palm tree maintenance, which is typically performed on a more frequent cycle due to species-specific requirements, will continue under its current maintenance schedule and will not be impacted by the proposed transition to a five-year cycle. 2 276
Tree maintenance services within City parks will also continue to be supported through contributions from the Parks and Recreation Department.

ATTACHMENTS: A. Amendment No. 1 to Agreement, Contract No. 2022-83-CC B. Agreement, Contract No. 2022-83-CC
C. Acceptance Letter From UPS
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Attachment A
Agenda Bill 6/09/26
Amendment No. 1
Contract No. 2022-83-CC
AMENDMENT NO. l TO CONTRACT N0. 2022-83-CC BETWEEN THE CITY OF SOUTH GATE AND UNITED PACIFIC SERVICES, INC.,

FOR CITYWIDE TREE MAINTENANCE SERVICES,
CITY PROJECT N0. 690-ST
This Amendment No. I to Contract No. 2022-83-CC ("Amendment") for Citywide Tree Maintenance Services, City Project No. 690-ST, is made and entered into as of June 9, 2026, by and between the City of South Gate, a municipal corporation ("City"), and United Pacific Services, Inc., a California corporation ("Contractor"). City and Contractor are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties."

RECIT ALS
WHEREAS, on September 7, 2022, following approval by the South Gate City Council, City and Contractor entered into an Agreement for Citywide Tree Maintenance Services, City Contract No. 2022-83-CC (the "Contract"), for City Project No. 690-ST; and WHEREAS, the Term of the Contract was four (4) years, and is scheduled to expire on September 6, 2026; and
WHEREAS, the Contract granted the City four (4) options to extend the Term of the Contract by one (1) year each; and
WHEREAS, in connection with City's modification of its tree-trimming cycle from a four- year cycle to a five-year cycle, City wishes to exercise the first of those options to extend the Term of the Contract; and
WHEREAS, the Contract is silent as to the compensation payable to Contractor during each such extended term; and
WHEREAS, City and Contractor hereby with to establish the amount of such compensation;
NOW, THEREFORE, the Parties hereby agree as follows:

1. EXERCISE OF OPTION AND EXTENSION OF TERM.

City hereby exercises the first of its options to extend the Term of the Contract for one (1) additional year. As such, the Term of the Contract will now expire on June 30, 2027. City reserves its right to exercise the remaining extension options under the Contract as and when such options become exercisable.

2. SCOPE OF WORK.

For the 12-month period from July 1, 2026 through June 30, 2027, the types of services to be performed by Contractor shall be as specified in the Contract, but the number and location of the trees to be maintained by Contractor shall be as designated by City in connection with City's transition to a five-year maintenance cycle.