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01-24-2017 Searchable packetCITY OF CUPERTINO AGENDA Tuesday, January 24, 2017 10300 Torre Avenue and 10350 Torre Avenue CITY COUNCIL 5:00 PM Special Meeting Non-televised Closed Session (5:00) and Televised Open Session (6:45) NOTICE AND CALL FOR A SPECIAL MEETING OF THE CUPERTINO CITY COUNCIL NOTICE IS HEREBY GIVEN that a special meeting of the Cupertino City Council is hereby called for Tuesday, January 24, 2017, commencing at 5:00 p.m. for a closed session in City Hall Conference Room A, 10300 Torre Avenue, Cupertino, California 95014 and open session following at 6:45 p.m. in Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, California 95014. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, “Special Meeting." SPECIAL MEETING CLOSED SESSION - 5:00 PM 10300 Torre Avenue, City Hall Conference Room A 1.Subject: Conference with Legal Counsel- Existing litigation (Paragraph (1) of subdivision (d) of Gov’t Code Section 54956.9). Name of Case: Alice Palmer v. City of Cupertino, et al., Santa Clara County Superior Court Case No. 16 CV301228 2.Subject: Conference with Legal Counsel- Existing litigation (Paragraph (1) of subdivision (d) of Gov’t Code Section 54956.9); Name of Case: Committee Supporting Cupertino Citizen’s Sensible Growth Initiative, et al. v. City of Cupertino, et al., Santa Clara County Superior Court Case No. 16 CV296322; Court of Appeal, Sixth Appellate District, Case No. H043940 3.Subject: Conference with Real Property Negotiators pursuant to Government Code Section 54956.8. Properties: APN 375-21-001, Lawrence Expressway at Mitty Avenue and APN 381-19-015, Lawrence Expressway at Doyle Road. Agency Negotiators: Jaqui Guzman. Negotiating Parties: San Jose Water Company; County Roads and Airports; City of San Jose. Under Negotiation: Price Page 1 CITY OF CUPERTINO 1 January 24, 2017City Council AGENDA and terms of payment PLEDGE OF ALLEGIANCE - 6:45 PM 10350 Torre Avenue, Community Hall Council Chamber ROLL CALL CEREMONIAL MATTERS AND PRESENTATIONS 4.Subject: Fine Arts Commission presentation of the Young Artist Award to three Cupertino elementary school students Recommended Action: Receive Fine Arts Commission presentation of the Young Artist Award to three Cupertino elementary school students 5.Subject: Presentation from the Fine Arts Commission of completed 2016 Work Plan items Recommended Action: Receive presentation from the Fine Arts Commission of completed 2016 Work Plan items POSTPONEMENTS ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the council on any matter not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will prohibit the council from making any decisions with respect to a matter not listed on the agenda. CONSENT CALENDAR Unless there are separate discussions and/or actions requested by council, staff or a member of the public, it is requested that items under the Consent Calendar be acted on simultaneously. 6.Subject: Approve the December 20 City Council minutes Recommended Action: Approve the December 20 City Council minutes A - Draft Minutes 7.Subject: Accept Accounts Payable for the period ending November 11, 2016 Recommended Action: Adopt Resolution No. 17-001 accepting Accounts Payable for the period ending November 11, 2016 A - Draft Resolution B - AP Report 8.Subject: Accept Accounts Payable for the period ending November 18, 2016 Page 2 CITY OF CUPERTINO 2 January 24, 2017City Council AGENDA Recommended Action: Adopt Resolution No. 17-002 accepting Accounts Payable for the period ending November 18, 2016 A - Draft Resolution B - AP Report 9.Subject: Accept Accounts Payable for the period ending November 23, 2016 Recommended Action: Adopt Resolution No. 17-003 accepting Accounts Payable for the period ending November 23, 2016 A - Draft Resolution B - AP Report 10.Subject: Annual Report for Fiscal Year 2015-2016 Recommended Action: Accept Annual Report from July 1, 2015 to June 30, 2016 (Attachment A) Staff Report A - Annual Report 11.Subject: Council committee appointments Recommended Action: Approve Council committee appointments A - Committee Assignments 12.Subject: Consider adopting a resolution supporting the prohibition of industrial clear-cut logging in the forests of California Recommended Action: Adopt Resolution No. 17-004 supporting the prohibition of industrial clear-cut logging in the forests of California Staff Report A - Draft Resolution B - Resolution Letter C - Clear-Cutting Resolutions from Other Cities 13.Subject: Letters of support for SB 1 and AB 1 regarding transportation funding Recommended Action: Direct staff to send letters of support for SB 1 and AB 1 from the City Manager Staff Report A - AB 1 Letter of Support to Assembly Member Frazier B - SB 1 Letter of Support to Senator Beall C - Estimated Local Streets and Roads Funding with SB 1 and AB 1 D - AB 1 E - SB 1 14.Subject: Citywide Parks, Open Space and Recreation Master Plan agreement for consultant services Page 3 CITY OF CUPERTINO 3 January 24, 2017City Council AGENDA Recommended Action: Authorize the City Manager to negotiate and execute a consultant services agreement for preparation of the Citywide Parks, Open Space and Recreation Master Plan for a fee not to exceed $210,000 and authorize a contingency allowance anticipated to be $40,000 and subject to approval of the City Manager. Staff Report A - Parks and Rec Commission Minutes B - Draft Agreement 15.Subject: 2015 Contractual Janitorial Services - Project No. 2015-23, contract amendment Recommended Action: Staff recommends Council take the following actions: 1. Authorize the City Manager to execute an amendment (Attachment A) to the current janitorial services contract to provide for increased contractor compensation due to the adoption of City’s Minimum Wage Ordinance (Ordinance No. 2151); and 2. Adopt Resolution No. 17-005 amending approved FY 16/17 Operating Budget by an additional amount of $35,000 for janitorial services (Attachment B) Staff Report A - Draft Amendment B - Draft Resolution to amend FY 16/17 Operating Budget 16.Subject: Application for Alcohol Beverage License for Gogigo, Inc. (dba Gogigo Korean BBQ), 10815 N. Wolfe Road, Bldg A Suite A3 Recommended Action: Recommend approval to the California Department of Alcoholic Beverage Control of the application for Alcohol Beverage License for Gogigo, Inc (dba Gogigo Korean BBQ), 10815 N. Wolfe Road, Bldg A Suite A3 Staff Report A - Application 17.Subject: 2017 CDBG City-Wide Curb Ramp Installation Project, Project No. 2017-109 Recommended Action: Authorize the City Manager to award and execute a contract with JJR Construction, Inc., in the amount of $233,100 and approve a construction contingency of $11,900, for a total of $235,000 Staff Report A - Bid Summary B - Draft Contract SECOND READING OF ORDINANCES PUBLIC HEARINGS ORDINANCES AND ACTION ITEMS Page 4 CITY OF CUPERTINO 4 January 24, 2017City Council AGENDA REPORTS BY COUNCIL AND STAFF 18.Subject: Lehigh Cement Plant Noise Monitoring report Recommended Action: Receive the Lehigh Cement Plant Noise Monitoring report. No action is required Staff Report A - Lehigh Cement Plant Noise Monitoring Report dated November 29, 2016 19.Subject: Report from Valley Transportation Authority (VTA) regarding Next Network Program Recommended Action: Receive Report from Valley Transportation Authority (VTA) regarding Next Network Program 20.Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments ADJOURNMENT Page 5 CITY OF CUPERTINO 5 January 24, 2017City Council AGENDA The City of Cupertino has adopted the provisions of Code of Civil Procedure §1094.6; litigation challenging a final decision of the City Council must be brought within 90 days after a decision is announced unless a shorter time is required by State or Federal law. Prior to seeking judicial review of any adjudicatory (quasi-judicial) decision, interested persons must file a petition for reconsideration within ten calendar days of the date the City Clerk mails notice of the City’s decision. Reconsideration petitions must comply with the requirements of Cupertino Municipal Code §2.08.096. Contact the City Clerk’s office for more information or go to http://www.cupertino.org/index.aspx?page=125 for a reconsideration petition form. In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend the next City Council meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, 48 hours in advance of the Council meeting to arrange for assistance. Upon request, in advance, by a person with a disability, City Council meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. Also upon request, in advance, an assistive listening device can be made available for use during the meeting. Any writings or documents provided to a majority of the Cupertino City Council after publication of the packet will be made available for public inspection in the City Clerk’s Office located at City Hall, 10300 Torre Avenue, during normal business hours and in Council packet archives linked from the agenda/minutes page on the Cupertino web site. Members of the public are entitled to address the City Council concerning any item that is described in the notice or agenda for this meeting, before or during consideration of that item. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located in front of the Council, and deliver it to the Clerk prior to discussion of the item. When you are called, proceed to the podium and the Mayor will recognize you. If you wish to address the City Council on any other item not on the agenda, you may do so by during the public comment portion of the meeting following the same procedure described above. Please limit your comments to three (3) minutes or less. Page 6 CITY OF CUPERTINO 6 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2272 Name: Status:Type:Closed Session Agenda Ready File created:In control:1/17/2017 City Council On agenda:Final action:1/24/2017 Title:Subject: Conference with Legal Counsel- Existing litigation (Paragraph (1) of subdivision (d) of Gov’t Code Section 54956.9). Name of Case: Alice Palmer v. City of Cupertino, et al., Santa Clara County Superior Court Case No. 16 CV301228 Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. Subject: Conference with Legal Counsel- Existing litigation (Paragraph (1) of subdivision (d) of Gov’t Code Section 54956.9). Name of Case: Alice Palmer v. City of Cupertino, et al., Santa Clara County Superior Court Case No. 16 CV301228 CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™7 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2250 Name: Status:Type:Closed Session Agenda Ready File created:In control:1/9/2017 City Council On agenda:Final action:1/24/2017 Title:Subject: Conference with Legal Counsel- Existing litigation (Paragraph (1) of subdivision (d) of Gov’t Code Section 54956.9); Name of Case: Committee Supporting Cupertino Citizen’s Sensible Growth Initiative, et al. v. City of Cupertino, et al., Santa Clara County Superior Court Case No. 16 CV296322; Court of Appeal, Sixth Appellate District, Case No. H043940 Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. Subject: Conference with Legal Counsel- Existing litigation (Paragraph (1) of subdivision (d) of Gov’t Code Section 54956.9);Name of Case:Committee Supporting Cupertino Citizen’s Sensible Growth Initiative, et al. v. City of Cupertino, et al., Santa Clara County Superior Court Case No. 16 CV296322; Court of Appeal, Sixth Appellate District, Case No. H043940 CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™8 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2242 Name: Status:Type:Closed Session Agenda Ready File created:In control:1/4/2017 City Council On agenda:Final action:1/24/2017 Title:Subject: Conference with Real Property Negotiators pursuant to Government Code Section 54956.8. Properties: APN 375-21-001, Lawrence Expressway at Mitty Avenue and APN 381-19-015, Lawrence Expressway at Doyle Road. Agency Negotiators: Jaqui Guzman. Negotiating Parties: San Jose Water Company; County Roads and Airports; City of San Jose. Under Negotiation: Price and terms of payment Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. Subject:ConferencewithRealPropertyNegotiatorspursuanttoGovernmentCodeSection 54956.8.Properties:APN375-21-001,LawrenceExpresswayatMittyAvenueandAPN381- 19-015,LawrenceExpresswayatDoyleRoad.AgencyNegotiators:JaquiGuzman.Negotiating Parties:SanJoseWaterCompany;CountyRoadsandAirports;CityofSanJose.Under Negotiation: Price and terms of payment CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™9 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2178 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:11/15/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: Fine Arts Commission presentation of the Young Artist Award to three Cupertino elementary school students Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council1/24/20171 Subject:FineArtsCommissionpresentationoftheYoungArtistAwardtothreeCupertino elementary school students ReceiveFineArtsCommissionpresentationoftheYoungArtistAwardtothreeCupertino elementary school students CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™10 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2228 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:12/14/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: Presentation from the Fine Arts Commission of completed 2016 Work Plan items Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council1/24/20171 Subject: Presentation from the Fine Arts Commission of completed 2016 Work Plan items Receive presentation from the Fine Arts Commission of completed 2016 Work Plan items CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™11 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1943 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:9/1/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: Approve the December 20 City Council minutes Sponsors: Indexes: Code sections: Attachments:A - Draft Minutes Action ByDate Action ResultVer. City Council1/24/20171 Subject: Approve the December 20 City Council minutes Approve the December 20 City Council minutes CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™12 DRAFT MINUTES CUPERTINO CITY COUNCIL Tuesday, December 20, 2016 SPECIAL CITY COUNCIL MEETING ROLL CALL At 5:45 p.m. Mayor Savita Vaidhyanathan called the City Council meeting to order in Cupertino City Hall Conference Room A, 10300 Torre Avenue. Present: Mayor Savita Vaidhyanathan, and Councilmembers Barry Chang, Steven Scharf and Rod Sinks. Absent: Vice Mayor Darcy Paul. CLOSED SESSION 1. Subject: Conference with Legal Counsel - Anticipated Litigation: Significant Exposure to litigation pursuant to paragraph (2) of subdivision (d) of Gov’t Code Section 54956.9 - Two Cases Mayor Vaidhyanathan announced that Council gave direction to staff. 2. Subject: Conference with Real Property Negotiators (Gov’t Code Section 54956.8); Property: Cupertino Municipal Water System; Agency Negotiator: Timm Borden; Negotiating Parties: City of Cupertino and San Jose Water Company; Under Negotiation: Terms for City Leased Asset Mayor Vaidhyanathan announced that Council gave direction to staff. ADJOURNMENT REGULAR CITY COUNCIL MEETING At 6:45 p.m. Mayor Savita Vaidhyanathan convened the Regular City Council meeting in Cupertino Community Hall Council Chambers, 10350 Torre Avenue. 13 City Council Minutes December 20, 2016 2 ROLL CALL Present: Mayor Savita Vaidhyanathan, and Councilmembers Barry Chang, Steven Scharf and Rod Sinks. Absent: Vice Mayor Darcy Paul. CEREMONIAL MATTERS AND PRESENTATIONS - None POSTPONEMENTS - None ORAL COMMUNICATIONS Mike McNutt talked about the recent Wreaths Across America ceremony sponsored by the Cupertino American League which honored Veterans. Larry Wilson talked about issues with wanting to build an accessory unit on his hillside lot. Members of Scout Troop 452 introduced themselves and talked about working toward their Citizenship in the Community Merit Badge. Jon Willey talked about South Vallco Specific Plan Environmental Impact Review (EIR) traffic analysis documents he’s asked to receive (he distributed written comments). Pete Heller talked about the Vallco Mall development and EIR. J.R. Fruen gave his time to Pete Heller. Jean Bedord read a letter that Gary Jones submitted to Council regarding Vallco Mall development (written comments distributed). Lisa Warren talked about the Cupertino General Plan (she distributed written comments). Ignatius Ding talked about the Cupertino General Plan. Danessa Techmanski talked about Vallco Mall development. Xiaowen Wang talked about Cupertino moving forward in the new year (she distributed written comments). CONSENT CALENDAR 14 City Council Minutes December 20, 2016 3 Wong moved and Chang seconded to approve the items on the Consent Calendar as presented. Ayes: Vaidhyanathan, Chang, Scharf and Sinks. Noes: None. Abstain: None. Absent: Paul. 1.Subject: Approve the December 6 City Council minutes Recommended Action: Approve the December 6 City Council minutes 2.Subject: Approve the December 8 City Council minutes Recommended Action: Approve the December 8 City Council minutes 3.Subject: Accept Accounts Payable for the period ending October 21, 2016 Recommended Action: Adopt Resolution No. 16-133 accepting Accounts Payable for the period ending October 21, 2016 4.Subject: Accept Accounts Payable for the period ending October 28, 2016 Recommended Action: Adopt Resolution No. 16-134 accepting Accounts Payable for the period ending October 28, 2016 5.Subject: Accept Accounts Payable for the period ending November 4, 2016 Recommended Action: Adopt Resolution No. 16-135 accepting Accounts Payable for the period ending November 4, 2016 6.Subject: Cancel the January 17 regular City Council meeting and call a special City Council meeting for January 24 Recommended Action: Cancel the January 17 regular City Council meeting and call a special City Council meeting for January 24 7.Subject: Move hearing date for objections to proposed removal of a public nuisance (weeds) to February 7 and amend resolution declaring weeds on certain described property to be a public nuisance to move the hearing for objections to proposed removal to February 7 Recommended Action: 1.) Move hearing date for objections to proposed removal of a public nuisance (weeds) to February 7; and 2.) Adopt Resolution No. 16-136 rescinding Resolution No. 16-125 and adopting an amended resolution declaring weeds on certain described property to be a public nuisance to move the hearing for objections to proposed removal to February 7 15 City Council Minutes December 20, 2016 4 8. Subject: Accept resignation of Teen Commissioner Rishit Gundu and direct staff to fill the unscheduled vacancy with the annual Teen Commission recruitment in May 2017 (continued from December 6) Recommended Action: Accept resignation of Teen Commissioner Rishit Gundu and direct staff to fill the unscheduled vacancy with the annual Teen Commission recruitment in May 2017 9. Subject: Revise the recruitment process for all commissions to add designated alternates at the time of initial appointment of regular members Recommended Action: 1.) Adopt the Resolution No. 16-137 rescinding Resolution No. 10-048 and revising the commission recruitment process for all commissions other than the Teen Commission to add designated alternates at the time of initial appointment of regular members; and 2.) Adopt the Resolution No. 16-138 rescinding Resolution No. 09-115 and revising the commission recruitment process for the Teen Commission to add designated alternates at the time of initial appointment of regular members 10. Subject: Pasadena Avenue Public Improvements Project - Increase in Contract Contingency Authorization Recommended Action: Authorize an increase in the construction contingency amount by an additional $8,000 with funds from the current appropriated project budget of $827,000 SECOND READING OF ORDINANCES - None PUBLIC HEARINGS - None ORDINANCES AND ACTION ITEMS 11. Subject: Discuss video contest for Friendship and Sister Cities Recommended Action: Discuss video contest for Friendship and Sister Cities Councilmember Chang explained his idea for the video contest. Chang moved and Vaidhyanathan seconded to approve using the City’s name for Chang to send an invitation to the Friendship and Sister cities to ask students to participate in making a 15 minute video about their city; and subject to Chang providing a proposal to Councilmembers in writing noting the contest rules and no request for funding; and Council has discretion to change its mind and not support the 16 City Council Minutes December 20, 2016 5 contest after seeing the proposal. The motion carried with Sinks voting no and Paul absent. REPORTS BY COUNCIL AND STAFF 12. Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments Councilmembers highlighted the activities of their committees and various community events. ADJOURNMENT At 7:51 p.m., Mayor Vaidhyanathan adjourned the meeting. _______________________ Grace Schmidt, City Clerk 17 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2232 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:12/19/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: Accept Accounts Payable for the period ending November 11, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council1/24/20171 Subject: Accept Accounts Payable for the period ending November 11, 2016 AdoptResolutionNo.17-001acceptingAccountsPayablefortheperiodendingNovember11, 2016 CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™18 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ALLOWING CERTAIN CLAIMS AND DEMANDS PAYABLE IN THE AMOUNTS AND FROM THE FUNDS AS HEREINAFTER DESCRIBED FOR GENERAL AND MISCELLANEOUS EXPENDITURES FOR THE PERIOD ENDING November 11, 2016 WHEREAS, the Director of Administrative Services or her designated representative has certified to accuracy of the following claims and demands and to the availability of funds for payment hereof; and WHEREAS, the said claims and demands have been audited as required by law. NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby allows the following claims and demands in the amounts and from the funds as hereinafter set forth in the attached Payment Register. CERTIFIED: _____________________________ Lisa Taitano, Finance Manager PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 24th day of January, 2017, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: _________________________ ________________________ Grace Schmidt, City Clerk Savita Vaidhyanathan, Mayor, City of Cupertino 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2233 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:12/19/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: Accept Accounts Payable for the period ending November 18, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council1/24/20171 Subject: Accept Accounts Payable for the period ending November 18, 2016 AdoptResolutionNo.17-002acceptingAccountsPayablefortheperiodendingNovember18, 2016 CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™34 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ALLOWING CERTAIN CLAIMS AND DEMANDS PAYABLE IN THE AMOUNTS AND FROM THE FUNDS AS HEREINAFTER DESCRIBED FOR GENERAL AND MISCELLANEOUS EXPENDITURES FOR THE PERIOD ENDING November 18, 2016 WHEREAS, the Director of Administrative Services or her designated representative has certified to accuracy of the following claims and demands and to the availability of funds for payment hereof; and WHEREAS, the said claims and demands have been audited as required by law. NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby allows the following claims and demands in the amounts and from the funds as hereinafter set forth in the attached Payment Register. CERTIFIED: _____________________________ Lisa Taitano, Finance Manager PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 24th day of January, 2017, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: _________________________ ___________________________ Grace Schmidt, City Clerk Savita Vaidhyanathan, Mayor, City of Cupertino 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2234 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:12/19/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: Accept Accounts Payable for the period ending November 23, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council1/24/20171 Subject: Accept Accounts Payable for the period ending November 23, 2016 AdoptResolutionNo.17-003acceptingAccountsPayablefortheperiodendingNovember23, 2016 CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™56 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ALLOWING CERTAIN CLAIMS AND DEMANDS PAYABLE IN THE AMOUNTS AND FROM THE FUNDS AS HEREINAFTER DESCRIBED FOR GENERAL AND MISCELLANEOUS EXPENDITURES FOR THE PERIOD ENDING November 23, 2016 WHEREAS, the Director of Administrative Services or her designated representative has certified to accuracy of the following claims and demands and to the availability of funds for payment hereof; and WHEREAS, the said claims and demands have been audited as required by law. NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby allows the following claims and demands in the amounts and from the funds as hereinafter set forth in the attached Payment Register. CERTIFIED: _____________________________ Lisa Taitano, Finance Manager PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 24th day of January, 2017, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: _________________________ ________________________ Grace Schmidt, City Clerk Savita Vaidhyanathan, Mayor, City of Cupertino 57 58 59 60 61 62 63 64 65 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2085 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:10/11/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: Annual Report for Fiscal Year 2015-2016 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Annual Report Action ByDate Action ResultVer. City Council1/24/20171 Subject: Annual Report for Fiscal Year 2015-2016 Accept Annual Report from July 1, 2015 to June 30, 2016 (Attachment A) CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™66 OFFICE OF THE CITY MANAGER CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: January 24, 2017 Subject Annual Report for Fiscal Year 2015-2016 Recommended Action Accept Annual Report from July 1, 2015 to June 30, 2016 (Attachment A). Discussion The attached Annual Report describes City activities over the past fiscal year. It is provided to inform Council and the public in addition to creating a history of the City's efforts on behalf of our residents. The City of Cupertino is fortunate to have engaged residents, generous volunteers, dedicated commissioners and City Council members, and talented staff that are dedicated to improving the quality of life in our community. This report highlights their efforts and celebrates their accomplishments. Sustainability Impact: None Fiscal Impact: None ____________________________________ Prepared by: Jaqui Guzmán, Deputy City Manager Approved for Submission by: David Brandt, City Manager Attachments: A – Annual Report 67 CITY OF CUPERTINO • FISCAL YEAR 2015 – 2016 City of Cupertino, California www.cupertino.org ANNUAL REPORT 68 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 Elected Officials Council Member Gilbert Wong Gilbert Wong was elected to the Cupertino City Council in November 2007 and 2011. He served as Mayor in 2011 and 2014. His second term ended in 2016. Email: gwong@cupertino.org Cupertino City Manager Cupertino City Council Members The Cupertino City Council has five members. They are elected at large to overlapping four-year terms. The Council members themselves elect the Mayor and Vice Mayor for a term of one year. David Brandt is serving as City Manager for the City of Cupertino. He is charged with implement- ing policy decisions made by the elected Council, which he accomplishes through delegation to appropriate departments. He is also responsible for preparation of the annual city budget consisting of an Adopted Budget of $118.6 million for Fiscal Year 2015-2016 with lower actual expenditures of $108.3 million. Email: manager@cupertino.org Council Member Darcy Paul Darcy Paul was elected to the Cupertino City Council in 2014. His first term will end in 2018. Email: dpaul@cupertino.org Council Member Rod G. Sinks Rod Sinks was elected to the Cupertino City Council in November 2011. His second term will end in 2020. Email: rsinks@cupertino.org Vice Mayor Savita Vaidhyanathan Savita Vaidhyanathan was elected to the Cupertino City Council in 2014 and served as Vice Mayor in 2016. Her first term will end in 2018. Email: svaidhyanathan@cupertino.org Mayor Barry Chang Barry Chang was elected to the Cupertino City Council in 2009 and 2014. He served as Mayor in 2016. His second term will end in 2018. Email: bchang@cupertino.org 69 City Budget 2 City Manager's Office 4 Recreation & Community Services 9 Public Works 13 Community Development 17 Law Enforcement 22 City Attorney 25 Administrative Services 27 ContentsIntroduction I am pleased to present to the City Council, to the residents of Cupertino, and to city staff the annual report for Fiscal Year 2015-2016 (FY2016). This report highlights the services we provided and major accomplishments achieved by each department over the last fiscal year. Highlights from the past year include: ■ Launched Silicon Valley Clean Energy (SVCE), a local, public non-profit that will purchase cleaner energy on the open market for residents and businesses in partnership with 12 participating communities in Santa Clara County ■ Reduced municipal water usage by 41% through several conservation efforts; achieved 75.8% litter reduction, surpassing the 60% state requirement; and planted 447 trees at 368 new locations ■ Engaged hundreds of residents in interactive activities to educate the public on City services at the Fall Festival with booths from each department ■ Expanded our digital display network at the Quinlan Community Center (three monitors), and added displays at the Senior Center and the Sports Center ■ Added traffic signal module to the Cityworks asset management application to improve workflow efficiency ■ Improved transparency by expanding information available through open data portals like Cupertino.org/GIS and Cupertinoca.opengov.com ■ Successfully transitioned to online employee timesheet reporting and reduced the number of printed paystubs and checks by 90% ■ Went paperless for Community Development applications in January 2016 with the implementation of electronic plan submission and review software ■ Funded the rehabilitation of 12 units at Le Beaulieu Apartments, a multi-family residential affordable housing property serving low-income disabled and senior households, and committed $3.6 million for the development of 19 affordable apartments targeting extremely low- and very low-income seniors ■ Launched Safe Routes to School Pilot Program in partnership with six local schools to encourage walking and biking to school while improving student safety ■ Completed 12 Capital Improvement Projects, including: tennis court resurfac- ing at the Sports Center, Senior Center exercise room wood floor replacement, Quinlan Cupertino Room lighting replacement, and Simm’s House removal. Bicycle and pedestrian improvements resulted in implementation of 80% of 2015 the Bicycle Plan Update ■ Selected as winner of the League of California Cities 2016 Outstanding Local Streets and Roads Project Awards Program in the “Efficient and Sustainable Road and Bridge Preservation, Maintenance, Construction and Reconstruction Projects” category On every page of this report, we summarize the inner workings of Cupertino, the engines that keep us running strong. You will read about the work of dedicated public servants and see the results. In short, this report is about the people that make our community a wonderful place to live, work, and play. Respectfully Submitted, David Brandt City Manager 1INTRODUCTION Elected Officials 70 2 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 Fiscal Year 2015–2016 City Budget Overview The Fiscal Year 2015–2016 Adopted Budget was a balanced and fiscally responsible spending plan throughout the five-year forecast period. Actual revenues for the year were higher than anticipated with expenditures ending the year lower than anticipated. Overall, revenues exceeded expenditures by $2.5 million. Excess revenue falls to fund balances, which is used in subsequent years to fund one-time projects; ongoing revenues continue to fully support ongoing operating costs. Despite the City’s reliance on a highly volatile high-tech industry, Cupertino has remained fiscally sound by controlling expenses, encouraging economic development, expanding revenue sources, and maintaining healthy reserves. Cupertino continues to maintain an outstanding school system and deliver exceptional services and, as always, will continually seek ways to enhance its services for residents and promote a community built on the values of education, innovation, and collaboration. Revenues: Where does the City get its money? Total City revenues for FY2015 totaled $110.3 million, a decrease of $36.8 million or 25% compared to prior year actuals. FY2016 revenues by fund for the City are shown in the graph below: General Fund Pays for core services like public safety, parks and recreation, community development, and public works. Revenue for this fund comes primarily from property and sales tax, franchise fees, and charges for services. Special Revenue Fund Accounts for the proceeds of special revenue sources legally restricted to expenditures for specific purposes. Debt Service Fund Pays principal, interest and associated administrative costs incurred with the issuance of debt instruments. Capital Projects Fund Pay for the acquisition and construction of major capital facilities from General Fund revenues. Enterprise Fund Pay for specific services that are funded directly by fees charged for goods or services. Internal Service Fund Pay for goods or services provided amongst City depart- ments or governments on a cost-reimbursement basis. FY2016 Revenues by Fund Internal Service $7,837,076 3% Enterprise $8,811,791 6% Capital Projects $5,907,000 4% Debt Service $3,167,538 2% Special Revenue $44,822,824 30% General Fund $79,004,004 53% 71 City Services Services provided by each department are as follows (by descending order of costs): Public Works: $ 31.7 million Maintenance of streets, public trees, parks, public buildings, and City’s vehicle fleet, along with urban runoff pollution prevention, transportation management, development services, floodplain management, and management of contracts for street sweeping, janitorial services, solid waste and recycling, and crossing guards. Non Departmental: $ 15.9 million This includes funding for the City’s debt service and transfers out to other funds primarily to fund capital project costs Capital Improvement Program (CIP): $13.2 million Provides design and construction administration for all capital improvement programs including streets, storm drainage, buildings, parks, and other public facilities Planning & Community Development: $12.1 million Building inspection, permit review, safety code enforcement, safety training Law Enforcement: $ 11.0 million Police, animal and noise control, emergency response, vehicle code enforcement Recreation & Community Services: $10.9 million Park development and supervision, leadership training, youth and senior programs, community and recreational events, emergency preparedness, community outreach Administrative Services: $4.8 million Human resources services, risk management, finance, business licensing, budget Information Services: $4.1 million Internal and external technology and communications program Administration: $3.8 million City Administration, sustainability programs, public affairs, agenda and records management, legal counsel City Council & Commissions: $719,000 Es tablishment of public policies Total City expenditures for FY2016 totaled $108.3 million, an increase of $19.0 million from prior year actuals. Actual costs to the City by department and by expenditure category were as follows: Expenditures : How does the City spend its money? Expenditures by Department Actual Expenditures by Category Administrative Services $4,849,197 4% Debt Services 4% Contingencies <0.5% Administration $3,837,931 4% Capital Projects $13,175,457 12% Contract Services 29% Public Works $31,700,292 29% Information Services $4,088,633 4% Planning and Community Development $12,053,824 11% Recreation and Community Services $10,939,149 10% Special Projects 22% Non-Departmental $15,949,805 15% Materials 6% Law Enforcement $10,998,736 10% City Council and Commissions $719,235 1% Employee Compensation 29% Other Financing Uses 1% Capital Outlays 9% 3CITY BUDGET Fiscal Year 2015–2016 City Budget 72 Overview Mission The mission of the City Manager’s Office is to provide professional leadership in the administration and execution of policies and objectives formulated by the City Council, develop and recommend alternative solutions to community problems for Council consideration, plan and develop new programs to meet future needs of the City, prepare the annual budget, and foster community pride in city government through excellent service. Goals and Objectives • Implement the City Council’s work program • Ensure all laws and ordinances of the City are duly enforced and that all franchises, permits, licenses, and privileges granted by the City are faithfully performed and observed • Collect and analyze relevant data to comply with state and federal regulations • Provide connectivity, functionality and support for robust sharing of information among the public, elected of- ficials and City staff Operating Budget FY2016 Actual expenditures for the City Manager's Office in Fiscal Year 2015-2016 were $6.3 million with 22.25 staff. Divisions The City Manager’s Office is responsible for the direct supervision of the City Clerk’s Office, Information Technology Division, Public Affairs Division, and Sustainability Division. During FY2016, the Information Technology Division was reorganized into the Information Services Department. 4 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 City Manager's Office 73 The City Manager's Office (CMO) is responsible for the effective and efficient operation of the City. Under the direction of the City Council, the CMO carries out the City's adopted goals and objectives, leads organi- zational efficiencies, directs City-wide policy efforts, and supports Council-initiated special projects. Major Projects, Programs, and Accomplishments Fee Update and Cost Allocation Plan Revision The CMO completed a comprehensive user fee study and cost allocation plan revision to determine cost recovery levels and recommended revisions to the City’s fee schedule approved by Council. The new fee schedule is estimated to reduce subsidies for develop - ment and other fee-for-service activities, generating approximately $1.0 million in additional General Fund revenues. The last full assessment of user fees was conducted in 2004 for Planning and Public Works services and in 2007 for Building Division services. Formation of Information Services Department Based on an Information Technology Assessment to address project backlogs and service-level issues, the City Manager proposed the creation of an Information Services (IS) Department comprised of IT, GIS, and City Channel. The CMO successfully recruited for the City's first Chief Technology Officer to lead the new department. Strategic Support for Recreation Reorganization The CMO provided the Recreation and Community Services Department with strategic support in evaluating and implementing a department reorganization, with a stronger emphasis on marketing and customer service and promotional opportunities to aid in succession planning. Public Affairs is responsible for planning and imple - menting a comprehensive internal and external communication program for the City of Cupertino, including community meetings, special events, awards dinners, ceremonial activities, monthly newsletters, and social media postings. The division promotes City goals, policies, programs and services to key audi- ences. Major Projects, Programs, and Accomplishments Community Engagement Efforts In 2015, Cupertino celebrated its 60th anniversary. In honor of our diamond year, the Public Affairs Division began a new tradition of representing the City at the Annual Fall Festival, which is co-sponsored by the Rotary Club of Cupertino and The World Journal. Cupertino is devoted to providing our citizens with use - ful and relevant information, especially through direct interaction. Every department and division participated with interactive booths that showcased the myriad of services Cupertino offers to our community. Communications and Brand Assessment The Public Affairs division completed an external as- sessment of communication activities related to public outreach, education, community engagement, and brand recognition. As recommended in the final report, Public Affairs has taken greater oversight over all mar- keting activity in the City, including the development of procedures related to media engagement and the cre - ation of a City-wide Communications Working Group to improve internal collaboration and coordination. The division is developing a work program to address the other recommendations made in the report. DEPARTMENT DIVISION: PUBLIC AFFAIRS DIVISION 5CITY MANAGER'S OFFICE City Manager's Office At the controls of the new Information Services Department 74 The City of Cupertino has long been a leader in practicing resource conservation and efficiency. It formalized these efforts in 2008 through the creation of a Sustainability Division within the Office of the City Manager. The division oversees and manages the implementation of the Climate Action Plan, tracks greenhouse gas emissions, and manages programs that reduce our climate impact. Major Projects, Programs, and Accomplishments Creation of Community Choice Energy Program The Sustainability Division was instrumental in develop - ing a regional community choice energy program leading to the creation of Silicon Valley Clean Energy (SVCE), a local, public non-profit launched in March 2016. SVCE will purchase cleaner energy on the open market for residents and businesses in 12 participating communities throughout Santa Clara County. Cupertino was the first city to join SVCE in December 2015. SVCE’s standard electricity offering, “GreenStart,” which costs less than PG&E and is 100% carbon free, will be available to all customers in April 2017. Conserving Water by Thinking Drought Sustainability staff continues to work with Public Works to adjust irrigation schedules in parks, sports fields, school sites, and street medians and implement landscaping improvements such as mulching, plant replacement, and converting to drip irrigation. These efforts resulted in a 41% savings in municipal water us- age in FY2016. Cupertino.org/savewater Growing Greener Businesses The GreenBiz Program is a free City service to guide businesses through the rigorous California Green Business Certification Program. In FY2016, the following eighteen businesses achieved their Green Business Certification: Development is CHILD's Play!, Erik's Delicafe, 15 departments from De Anza College, and Harini A Krishnapuram DDS. Two businesses, the Driving Machine and Purglen of Cupertino, were re-certified. Cupertino.org/greenbiz “Energized by Art” Utility Box Pilot Project In partnership with Hongyun Art School and the Fine Arts Commission, the “Energized by Art” project was an art contest that asked K-12 students to submit entries in response to the theme “What can I do to conserve resources in Cupertino?” In fall 2015, four traffic controller boxes were painted along De Anza Boulevard as part of the inaugural project. Earth Day & Arbor Day Festival Cupertino's 8th Annual Earth Day & Arbor Day Festival brought together over 5,000 com - munity members, 70 partnering organizations, and 150 volunteers to the Civic Center Plaza to share and explore the diverse environmental programs offered by Cupertino and its environmental partners. This year’s festival launched with Cupertino’s first “Pedal for the Planet” Family Bike Ride, in partnership with the Safe Routes 2 School Program, which had over 50 youth cyclists and their families complete a 7-mile bike ride around the City's schools and parks. DEPARTMENT DIVISION: SUSTAINABILITY DIVISION 6 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 Volunteers clean the creek during Earth Day activities One of the winning designs in the Utility Box Pilot Project 75 DEPARTMENT DIVISION: SUSTAINABILITY DIVISION Awards, Grants & Recognitions • The City won an Outstanding Case Study Award from the Sustainable Purchasing Leadership Council. This award recognizes Cupertino’s efforts to drive both municipal and commercial implementation of green purchasing strategies. • The City partnered with the Friends of Stevens Creek Trail, the Mid-Peninsula Open Space District, and the cities of Mountain View and Sunnyvale to request matching funds from the Santa Clara Valley Water District for a steelhead passage improvement study along Stevens Creek. The Water District granted $57,000 towards the study with $19,000 in matching funds from the partner agencies. Commissions Sustainability Commission The Sustainability Commission held its inaugural meeting in March 2016. It is a five-member commis - sion appointed by the City Council to review and make recommendations related to the implementation of the City's Climate Action Plan and progress towards reducing the City's Greenhouse Gas emissions. Sustainability Division staff serves as liaison. 7CITY MANAGER'S OFFICE Overview Information Technology was a division of the City Manager’s office in FY 2016. Information Services is responsible for internal and external technology and also ensures constituents have easy access to City information via the communication technology of their choice. Its pro - gram areas include: Information Technology, Geographic Information Systems, Applications, and Video. Major Efforts and Accomplishments • Control room upgrade — Completed design and initiated installation phase of the video control room upgrade project. The new control room system allows for the recording and streaming of events in high definition; supports an expanded scope of live broadcasting and improves signal routing efficiency. • Community Hall technical systems upgrade — Began design work on the community hall technical systems upgrade project. Identified the specific com - ponents needed to complete the project. Installation phase is scheduled for December 2016 – May 2017 • CatDV assets management system — Began the first phase of the CatDV project by consolidating me - dia assets into an organized folder structure within the SAN. CatDV is central database/repository for all media files within the City’s network—one that can be easily accessed by all employees. • Expansion of digital signage displays to rec- reation facilities — Expanded our digital display network at the Quinlan Community Center (to three monitors), and added displays at the Senior Center and the Sports Center. • Upgraded the EOC audiovisual system — Added a new projector, programmable touch screen, inte - grated switching system, etc. to the EOC. • Expanded video presence on social media — This included a series of live Periscope broadcasts with then-Mayor Rod Sinks. • Added Cupertino traffic signals to the asset management system — Traffic signals are the newest asset to be included in the Cupertino asset management system, Cityworks. In a collaborative effort between Traffic Signal Technicians, Traffic Engineering, and GIS, the asset data models were created, data inventories collected and user work- flows integrated in the Cityworks application. The application includes work orders, inspections, reports dashboards, notifications, and training. The Traffic Signal Division is currently in full swing creating work orders attached to feature assets, performing inspec - tions on assets and updating inventories in the field. • Open Data Portal — Cupertino.org/GIS has been redesigned to make GIS data more accessible to all stakeholders. Among those services is an Open Data Portal that allows users to explore and down- load our publically available GIS data. This site offers the ability to search, filter, download and uses API Access to over 50 GIS datasets. Access it here: gis.cupertino.opendata.arcgis.com • Information Technology assessment — An in- depth assessment of the Information Technology Division was performed by NexLevel LLC to gauge the Division’s ability to meet the City’s ever-growing technology needs and improve customer service. As a result, Bill Mitchell was hired as the City’s first Chief Technology Officer (CTO) in April of 2016. DEPARTMENT DIVISION: INFORMATION SERVICES DIVISION 76 Office of the City Clerk Overview The City Clerk’s office is a division of the City Manager’s office. Responsibilities include administrative duties associ- ated with the City Council’s agenda and actions; publishing legal notices; posting notice of all commission vacancies; processing codification of the City’s Municipal Code, records management; and compliance with Public Records Act requests. The City Clerk’s office also provides mail ser- vice for all City Departments and administers the legislative process including management of local elections and filings of Fair Political Practices Commission documents. The City Clerk actual operating expenditures for FY2016 were $592,000, which includes duplicating and mail, election costs, and three staffing positions. Mission The City Clerk's office is dedicated to excellence in customer service, encouraging community engagement and participation in local government, creating indepen- dent accessibility and transparency of records through innovative technology, and exemplifying leadership by working together to achieve the highest goals. Major Service Efforts and Accomplishments 2016 was an election year for Cupertino. The City Clerk’s office handled the usual City Council Candidate process helping eight candidates to qualify to run. The Clerk’s office also processed an unprecedented number of Initiative petitions (four) and one Recall peti - tion. Two of those Initiative petitions qualified for the November 8, 2016 ballot as City Measures. ■ 8 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 Information Services Department control room • Desktop environment technology refresh — Long- standing issues with the City’s desktop environment were resolved. A technology refresh program was developed to ensure continued success. Productivity and Efficiency Improvements • Completed Storage Area Network (SAN) for media files — All media files (videos and images) are now located in a central repository that can be accessed and edited from any computer on the network. • Transitioned to Adobe Creative Cloud for all multimedia projects — Adobe Creative Cloud is a single, integrated platform that improves overall workflow efficiency. Commissions The Technology, Information & Communications Commission (TICC) advises the City Council and informs the community about issues relating to the rapidly changing fields of communication and technology. 77 9RECREATION & COMMUNITY SERVICES Recreation & Community Services Overview The Cupertino Recreation and Community Services Department aligns its programs and activities to the depart- ment’s vision, mission, values, and outcomes. Mission The Department is committed to providing opportunities, resources, and services to the community to enhance the quality of people’s lives through recreational, educational, and cultural experiences. Our vision is to create a positive, healthy, and connected community. Goals and Objectives • Healthy Community (Blackberry Farm Golf Course, Cupertino Sports Center, swimming, tennis, soccer, soft- ball, basketball and many other venues) • Creative and Playful Community (Summer Camps, Blackberry Farm Park, Noon-time recreation in our schools, dance, music and art) • Well-Educated Community (Preschool, ESL classes, After-school Enrichment programs, Summer school and computer classes) • Connected and United Community (Service camp, festival support, Senior Trips, Case management, Helping Hands, leaders in training, Block Leaders and Disaster Preparedness) • Fiscally Responsible Community (adheres to budget and embraces an active volunteer program) 78 10 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 Divisions The Cupertino Recreation and Community Services Department Divisions consist of Administration; Sports, Safety, and Outdoor Recreation; Recreation and Education; and Business and Community Services. In addition, we are the liaison to the Santa Clara County Library System and to our three school districts. Operating Budget The Department’s Fiscal Year 2015-2016 operating budget expenditures were $10.8 million with 32.18 permanent, benefited positions. Highlights for Last Fiscal Year • Opened a new Environmental Education Center and renovated Blacksmith Shop at McClellan Ranch Preserve • Completed installation of a new multi-purpose sports court at the Cupertino Sports Center • Launched new department-wide recreation manage - ment software project • Held the second annual “Harvest Festival” at Blackberry Farm • Continued to partner with Acterra on a multi-year project to restore the Meadow at McClellan Ranch Preserve • Held nine Neighborhood Watch meetings with approximately 230 residents in attendance and organized a successful National Night Out event in partnership with Target • Held quarterly Block Leader meetings and two additional meetings, including a training on authen- tic leadership by Mike Robbins, a walking tour of Memorial Park, a burglary prevention presentation by the Sheriff’s Office, the 14th Annual Block Leader appreciation event, and recruited and ori- ented 17 new Block Leaders to the program • Offered the McClellan Ranch Creek studies program to all third grade CUSD classes as well as three char- ter schools. This year’s program was expanded to include McClellan Ranch staff visiting several school sites to assist students with preparation for their Project Based Learning (PBL) presentations • Harvested 4,501 lbs of fruit from the Stocklmeir Orchard • Supported the well-attended community and cultural festivals including Kids ‘N Fun, Food and Art Festival, Silicon Valley Fall Festival, DogFest Silicon Valley, Diwali, Veterans Day, Cherry Blossom, and World Journal • Held successful annual July 4th event at Memorial Park and Blackberry Farm: Approximately 700 people at- tended the pancake breakfast, children’s carnival, parade, flag raising, and concert at Memorial Park and another 900 attended Blackberry Farm with 815 people us- ing the pool • Produced successful Summer Concert series with seven performances at Memorial Park Amphitheatre • Hosted nine well-attended “Romeo and Juliet” performances presented by the San Francisco Shakespeare Company • Enrolled 332 participants in the Preschool Program for the 2015-16 school year • Accomplished another successful Breakfast with Santa event at the Quinlan Community Center for 186 participants; achieved full registration for Santa visits at 56 houses over the holiday season • Sold 1,176 annual memberships, 2,632 monthly passes, 1,511 day passes and 2,372 drop-in passes for classes and sports at the Sports Center • Registered 5,549 participants for tennis, badminton, table tennis, pickleball, volleyball, and Kids Castle programs • Generated $355,617 in Golf Course revenue and pro - vided over 28,000 rounds of golf to the community Enjoying the Big Bunny 5K & Fun Run Blackberry Farm Golf Course 79 11RECREATION & COMMUNITY SERVICES • Signed up over 1,000 participants for the Big Bunny 5K and Fun Run, which included partnerships with 12 local vendors • Taught 1,597 youth and adults via the 8-week summer "Learn to Swim" program at Cupertino High School • Honored 235 members at the Senior Center Volunteer Appreciation Luncheon in March who contributed a total of 23,657 service hours • Provided case management services, lectures, blood pressure checks, SALA and housing appointments to over 600 Senior Center members and residents • Supported activities of the Citizen Corps, which had 319 volunteers participating in 2,859 hours of activa - tions, exercises, and trainings. These included the completion of four major Eagle Scouts projects, three ARK Coffee Quake outreach events for community education, and three activations requested by the Sheriff's Office for missing persons. • Offered over 48 new programs at the Senior Center Major Projects/Programs/ Accomplishments • Launched the City Wide Parks, Open Space and Recreation Master Plan and conducted public outreach • Offered new McClellan Ranch Programs, includ- ing Primitive Skills Workshops, History Walks, Exploring the Night Sky, Basketry Workshops, Ant Presentations, and Lichen Walks • Rebranded the enrichment partnership with CUSD as Before and After School Enrichment (BASE) and en- rolled 520 students, generating $105,000 in revenue • Introduced new pro - grams at the Cupertino Sports Center: volleyball, cricket, basketball classes, Bootcamp, and Pound (fitness class with drumming incorporated) • Participated in the World’s Largest Swim Lesson event and partnered with the Library and YMCA for the International Yoga Day • Provided and man- aged first International Mystery Trip offered through the Senior Center with full capacity and 98% satisfaction rating. A total of 534 people participated in the Senior Center Travel Program, which included 37 new trips, with a 93% overall satisfaction rating • Offered Sounds of the City the first intergenerational concert held at the Senior Center. Two senior and three teen groups performed to an audience of over 120 — earning a 91% satisfaction rating • Completed a department re-organization in April 2016, resulting in three newly formed divisions, including Business and Community Services • Participated in emergency preparedness trainings which included a Red Cross Shelter Management table top discussion, active shooter trainings, fire & earthquake drills, severe weather planning, and compilation of emergency “Go-Kits” Productivity and Efficiency Improvements • Executed contract with PerfectMind™ recreation soft- ware and launched discovery and requirements gathering phase for the Department’s new software system • Completed audit of customer service procedures, including an internal review of business processes in preparation for the implementation of a new recreation software system • Added a new ceramics wheel to the Wilson Park Building, due to popular demand • Constructed new fencing and planter boxes for the Badminton at the Sports Center Basketball class at Cupertino Sports Center 80 12 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 Cupertino Community Gardens through the Eagle Scout program • Added improvements to the Teen Center: new computer consoles, flat screen television, and new ping pong table Awards, Grants & Recognitions • Presented: A California Park and Recreation Society (CPRS) District 4 citation award was given to two Senior Center volunteers • Selected: Senior Center volunteers Cliff and Monica Chung were given a CREST Award for making major contributions to the quality of life in Cupertino during the 2015 calendar year • Elected: California Parks and Recreation Society (CPRS) District 4 elected Recreation Coordinator Justin Cecil, CPRP, to the CPRS District 4 Aging Section Representative Chair position, and Recreation Coordinator Kelsey Hayes as the V.P. of Finance • Accomplished: Recreation Coordinators Molly James and Rachelle Sander successfully completed the Supervisor Management School Training of- fered through the National Recreation and Parks Association (NRPA) • Achieved: Recreation Manager Christine Hanel received Certified Park and Recreation Professional certification through NRPA Commissions Teen Commission The Teen Commission is a nine-member commission that advises the City Council and staff on issues and projects important to youth. Recreation and Community Services staff serves as liaison. • Participated in the Annual YAC Attack Conference in Mountain View and the Youth for Environment & Sustainability Conference in Berkeley • Implemented several city-wide teen events includ- ing: Sounds of the City, Walk-One-Week, and Inspire Dream Empower Achieve (IDEA) • Collaborated with city staff to design, promote, and collect the Teen Center Relocation Survey Parks and Recreation Commission The Parks and Recreation Commission is a five-member commission that advises the City Council on municipal activities in relation to parks and recreation. Recreation and Community Services staff serves as liaison. • Adopted a work program that focused on long-term goals and objectives including park master planning and associated program needs in the Stevens Creek to McClellan Ranch Corridor • Adopted criteria for Parks & Recreation Commission Capital Projects • Updated the Parks & Recreation Commission Ordinance • Appointed two new commissioners Library Commission The Library Commission consists of five members appointed by the Council that advises the City Council on the adequacy of library service within the Cupertino Community and other such matters related to library services and serves as the liaison between the city and the Santa Clara County library system. This commission now resides under the Recreation and Community Services Department The commission works in partnership with the Cupertino Library Foundation, the Friends of the Library and the City to support the Poet Laureate program. ■ One of the fundraising activities held at the Senior Center 81 Cupertino residents of all ages enjoyed the "Pedal for the Planet" Family Bike Ride event 13PUBLIC WORKS Public Works Overview Mission The Public Works Department provides responsive and high quality public works services and projects to the public and other City departments in the areas of engineering, construction, environmental services, operations and maintenance. Goals and Objectives The Public Works Department creates a foundation for a great community by providing services and projects that are the result of collaborative interactions with the community’s residents, businesses and City Council. These services and projects are: • Supportive of an informed public • Sustainable • Safe • Conducive to a high quality of life • Compliant to regulatory requirements We achieve these goals by: • Providing prompt response to our clients on requests for services and complaints • Programming and delivering Capital Improvement Projects in a timely and cost-efficient manner • Working with other City departments to consistently deliver efficient, high-quality services • Representing the City regional issues such as congestion management and stormwater management • Managing regulatory programs such as stormwater pollution prevention, solid waste and recycling programs Operating Budget Actuals The Department had a staff of 82.12 and actual operating expenditures of $31.6 million in Fiscal Year 2015-2016. 82 14 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 Department Divisions Development Services Responsible for: • Development review, encroachment permitting, and support of the development counter • Reviewing private developments to ensure confor- mance with City standards and policies • Inspection services ensuring compliance with City standards on public and private projects • Responding to citizen and other requests related to infrastructure and other public facilities Environmental Programs Responsible for the management of environmental programs including: • $10 million annual solid waste, recycling and com- posting contract • Household Hazardous Waste program • Compliance with the State-mandated Municipal Regional Storm Water Permit Transportation Responsible for developing and maintaining a safe and efficient transportation network, which includes: • Maintenance of 56 traffic signals • Placement of traffic signs, pavement markings, and other traffic control features • Reviewing development proposals for traffic im - pacts, mitigations and improvements • Representing the City on various VTA working com- mittees • Leading and managing Safe Routes to School Program • Implementing Bicycle and Pedestrian Master Plans Capital Improvement Program Administer varied Capital Improvements including: • Development of master plans and the management of the design and construction of improvements to streets, recreation, park and trail facilities, and City buildings Maintenance Grounds Maintains all 21 park and open space areas, which includes: • 140 acres of landscape, athletic field, and recreational turf areas • Nine CUSD athletic and landscape areas comprising another 55 acres Streets • Maintain City streets, traffic signs and markings, concrete, and streetlights • Responsible for storm drain maintenance, and man - agement of street sweeping and school crossing guard contracts Trees and Right-of-Way • Maintain the safety, health and appearance of ap - proximately 14,360 street trees and 31.5 acres of developed median islands Facilities and Fleet • Provide building and systems maintenance to 16 buildings and nine single standing restroom facilities • Responsible for evaluation of replacement equip - ment regarding life cycle costs and energy consumption • Administer janitorial contract for all City facilities • Maintain 94 vehicles, 54 rolling stock, 18 trailers, 17 riding mowers, and 308 pieces of power equipment Major Service Efforts and Accomplishments Development Services • Reviewed 204 projects, including Hyatt House, Foothill Apartments, and portions of Apple Campus 2 • Provided support to Community Development for early project review and conditioning of various proj - ects, including the Hamptons and Marina Projects • Assisted developers and contractors through the construction process, including ongoing inspection services and review of construction revisions • Issued 356 Encroachment Permits for work in the right of way Monte Vista Storm Drain 83 15PUBLIC WORKS Environmental Programs • Achieved 75.8% litter reduc - tion, surpassing the 60% state stormwater require - ment for 2016 • Received, with partners, a National Award for Municipal Stormwater Management, Green Infrastructure, and Innovation from Water Environment Federation • Inspected 76 businesses for potential to pollute stormwater; investigated and resolved 131 stormwater complaints • Partnered with Monte Vista High students to install permanent recycling and trash bins on McClellan Road in high litter areas • Achieved a 47% increase in businesses participating in separating organics, as a result of staff visits and events • Confirmed by CalRecycle: Cupertino employers achieved 75% waste diversion • Engaged 5,000 community members in environmen- tal stewardship at nine events • Donated compost from food and yard waste collec - tion to 1,328 residents Transportation • Launched Safe Routes to School Pilot Program, partnering with six schools in Cupertino to develop strategies to improve student safety and encourage walking and biking to school • Completed a citywide study of intersections and streets to compile a prioritized list of locations for crosswalk flashing warning lights, radar speed feed- back signs and crossing guards • Expanded network of electric vehicle charging stations to include the Quinlan Center and library parking lots • Expanded fiber optic communication network to outlying traffic signals to enhance operation and maintenance efficiency Capital Improvement Program In FY2016, of the 33 projects that were funded, 28 were in some active state of development during the course of the year, and of those, 12 were completed. • Resurfaced 18 Sports Center Tennis Courts: the west side court resurfacing was completed in November 2015, and the east side courts were finished in October 2016 • Replaced wooden floor in Senior Center Exercise Room • Replaced Cupertino Room lighting in Quinlan Community Center • Designed and installed landscaping at Mary Avenue Senior Center • Completed demolition and removal of Simm's House at McClellan Ranch West • Implemented Bicycle and Pedestrian Facility Improvements to achieve 80% of 2015 Bicycle Plan Update • Concluded construction of Monta Vista Storm Drain System (Orange & Byrne Ave.) over summer 2015 Maintenance Grounds Division • Continued goose management at Memorial Park • Installed new irrigation pump at Jollyman Park • Converted existing sprinklers to pressure regulated sprinklers at several parks and school sites (qualified for rebates from SCVWD) • Completed Sports Center sign and plant renovation and conversion to drip irrigation Streets Division • Repainted 159 street legends • Repainted 21 legends in school zones2016 Bike Fest 84 16 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 • Installed 78 new signs • Replaced 251 various types of existing signs • Inspected and cleaned 1,443 storm drains • Completed LED streetlight upgrade in the Monta Vista commercial area Tree/Right of Way Divisions • Planted 447 trees (368 new locations) • Trimmed 3,069 trees • Removed 77 dead, dying, diseased or unsafe trees • Renovated median on Stevens Creek Blvd west of Miller Avenue • Renovated median on Stevens Creek Blvd east of Saich Way • Converted irrigation on median strips to drip systems and installed new plants on medians throughout the City Facilities & Fleet Division • Installed new LED lights at the Welding Shop, Signal Maintenance Building and Senior Center • Installed additional panic alarms and blue strobes at Quinlan Center • Constructed new courtyard at McClellan Ranch consisting of 45 feet of new redwood fencing and three yards of rock • Switched to renewable diesel fuel to reduce our carbon footprint Productivity and Efficiency Improvements • Developed updated standard form contracts for professional services • Implemented utility data software that tracks and validates municipal usage of water, electric and gas • Reduced municipal water use by 31% as compared to 2013 • Completed GIS layer for all municipal water services including the irrigated area for all open space locations • Installated new vehicle and equipment fuel manage - ment system at the Service Center • Converted all diesel fleet service vehicles from petro - leum fossil diesel to renewable diesel derived from waste agricultural products. Greenhouse gases reduced by 60+% with no modifications to equipment necessary • Implemented the second tier of mandated organic recycling for commercial customers Awards, Grants & Recognitions • Received CPRS District 4 and State Award of Excellence in Facility Design for the Environmental Education Center and Renovated Blacksmith Shop • Received a national American Public Works Association (APWA) award as national Public Works Project of the Year for 2015 for the Stevens Creek Corridor Park and Restoration Phase 2 project • Received a statewide award from California Stormwater Quality Association (CASQA) for Outstanding Sustainable Stormwater Project for wa - ter quality protection for the Stevens Creek Corridor Park and Restoration Phase 2 project • Received a regional award from American Society of Civil Engineers (ASCE), San Francisco section for Outstanding Sustainable Project of the year for Stevens Creek Corridor Park and Restoration Phase 2 project • Received a regional award from Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP) which honors innovative site design and sustainable practices to protect water quality, for Stevens Creek Corridor Park and Restoration Phase 2 • The City’s Pavement Management Program was selected as the winner of the League of California Cities 2016 Outstanding Local Streets and Roads Project Awards Program in the “Efficient and Sustainable Road and Bridge Preservation, Maintenance, Construction and Reconstruction Projects” category • The Safe Routes to School Program was awarded Partnerships to Improve Community Health (PICH) Grant Cycle 2 Commissions Bicycle Pedestrian Commission • Completed 2016 Bicycle Transportation Plan Update, which includes recommendations for new Class IV (separated) bike lanes and a Class 1 off-street bike loop around Cupertino • Coordinated the successful operation of an Energizer Station on Bike-to-Work Day, the second annual Bike Safety Rodeo and a six-mile family bike ride around Cupertino to encourage ridership Parks and Recreation Commission • Presented various updates and final reports to the P&R Commission and Library Commission • Presented proposed CIP budget to P&R Commission ■ 85 17COMMUNITY DEVELOPMENT Main Street Cupertino Community Development Overview Mission The mission of the Community Development Department is to design and build a cohesive, safe, vibrant, and economically strong City through comprehensive policy, community engagement, planning, permitting, and public education. Goals and Objectives • Ensure a safe and healthy community • Conserve resources and the environment • Emphasize community values • Provide excellent customer service • Practice efficiency and fiscal responsibility Operating Budget The Cupertino Community Development Department aligns its budget and programs to the department’s mission and goals. The department’s operating budget for Fiscal Year 2015-2016 was $12.1 million, offset by $15.7 million in revenue. Revenues exceed expenditures due to a large Apple Campus 2 payment for services provided in FY2015. Excluding this payment, cost recovery for the department was approximately 95%. Department Divisions The Community Development Department consists of four divisions: Planning, Building, Housing and Economic Development. Community Development also assists the Planning Commission, the Housing Commission, and the Fine Arts Commission. 86 18 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 Trends for FY2016 • The number of planning applications appeared to decrease by approximately 13% from 318 applica - tions in FY2015 to 276 in FY2016. This was due to the fact that multiple applications tied to a single property are now only counted once in the new land use tracking system, whereas previously every each application was counted individually. • The number of requested building inspections appeared to decrease by approximately 7% from 17,589 inspections in FY2015 to 16,379 in FY2016, partially due to new inspection tracking software and the fact that Apple Campus 2 inspections are conducted in a separate process. • The number of building permits issued increased by approximately 11% from 2,177 permits in FY2015 to 2,412 in FY2016. • Building Valuation in Cupertino increased by approxi- mately 27% from $327.3 million in FY2015 to $415.6 million in FY2016. Major Projects, Programs and Accomplishments • From July 1, 2015 to June 30, 2016, Apple Campus 2 completed the structure of the parking garages and began construction on the research and devel- opment buildings on North Tantau Avenue By June 30, 2016: • Main Street Cupertino — Building permits were approved for the hotels, apartments and park; Lazy Dog, Philz Coffee, LYFE Kitchen and Eureka! restau- rants opened • Nineteen800 Rosebowl — Cooper Vino, The Kebab Shop, Vitality Bowls and Kula Sushi opened • Marina Plaza — Reviewed by Planning Commission on June 14, 2016 • Cupertino Village — Retail Buildings A&B had temporary certificates of occupancy; MOD Pizza, Pancheros Mexican Grill, and Key Point Credit Union opened • The Biltmore Clubhouse and 6 attached residential units — Building permits were approved and con- struction had started • Saich Way Station — Vitamin Shoppe, The Melt, The Coder School, H&R Block, T-Mobile and Blast 825 opened • Hamptons — City Council reviewed and approved the project on June 21, 2016 Productivity and Efficiency Improvements • Community Development went paperless on January 11, 2016. Applicants must now submit elec - tronic plans, which can be reviewed with the newly implemented ProjectDox system. • Building, Planning, Public Works, Environmental Services, and Cupertino Sanitary District started reviewing and approving plans electronically. This reduced review time and eliminated the inefficiency of paper movement and storage. DEPARTMENT DIVISIONS PLANNING DIVISION The Planning Division administers land use regulations and development policies to ensure Cupertino's built environment adapts to resident needs and enhances livability, prosperity and sustainability. Accomplishments in FY2016 • Hired a full-time Senior Code Enforcement Officer who processed 54 zoning and municipal code enforcement cases • Made clarifications and eliminated redundancy in the Zoning Code, and also updated several ordinances including: - Density Bonus Ordinance in response to AB2222 and AB744 Aerial view shows the progress of Apple Campus 2 Rendering of Marina Plaza 87 19COMMUNITY DEVELOPMENT - Sign Ordinance to ensure compliance with out- come of court case (Reed vs. Town of Gilbert) - Medical Marijuana Ordinance in response to Assembly Bills 243 and 266 and Senate Bill 643 - Parking Ordinance to allow single family homes with non-conforming single car garages/carports to retain them, and updated bicycle parking standards - Water Efficient Landscape Ordinance (WELO) in response to Governor Brown's Executive Order B-29-15 and the State's updated Model WELO • Processed two applications for General Plan Authorization for Oaks and Good Year Tire site in the first cycle of 2016 • Coordinated 9212 reports for community-led initia- tives Measure C — Cupertino Citizens' Sensible Growth Initiative, and Measure D — Vallco Town Center Specific Plan Initiative • Engaged over 180 residents with Mapping Exercise and about 50 residents with the Landmarks Game at Fall Festival 2015 DEPARTMENT DIVISIONS BUILDING DIVISION The Building Division safeguards the public health, safety, and general welfare of residents, workers, and visitors to Cupertino through effective administration and enforcement of building codes and ordinances adopted by the City. Accomplishments in FY2016 • Updated local Building Code standards in Municipal Code • Adopted new 2016 California Code of Regulations based on International Building Code standards • Digitized over 130,000 building records which are now publically available • Trained Cupertino Sanitary District and Santa Clara County Assessor Office to utilize electronic plan review system. • Piloted and improved a land use workflow system to move projects from planning to permitting to final inspection. DEPARTMENT DIVISIONS HOUSING DIVISION The mission of the City of Cupertino Housing Division is to provide safe, decent, and affordable housing and services to low- and moderate-income Cupertino households with emphasis in the following areas: • Public Agency Employees of Cupertino • Employees of Cupertino • Residents of Cupertino Accomplishments in FY2016: • Provided management and oversight of the City’s Below Market Rate (BMR) Program, Community Development Block Grant (CDBG) Program, Below Market Rate Affordable Housing Fund (AHF), and General Fund Human Service Grants (HSG) Program • Provided funding to complete the rehabilitation of 12 units within Le Beaulieu Apartments, a 27-unit multi-family Rendering of the Hamptons project, approved in FY2016 88 20 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 residential affordable housing property in Cupertino serving low income, disabled, and senior households • Updated Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Manual) which was adopted by City Council • Committed $3.6 million in AHF funding to Charities Housing for the development of 19 apartments, of which 18 will be affordable to seniors 62 and older, serving extremely low and very low incomes • Completed CDBG Annual Action Plan and submit- ted it to United States Department of Housing and Urban Development (HUD) • Completed CDBG Consolidated Annual Performance Evaluation Report (CAPER) and submitted to HUD DEPARTMENT DIVISIONS ECONOMIC DEVELOPMENT DIVISION The mission of the City of Cupertino Economic Development Division is to enhance the vitality of the local economy and improve the quality of life for its residents and visitors by working to attract, retain, and grow business in Cupertino. These actions strengthen the City’s local economy, build capacity, and create jobs and general economic opportunity to sustain a vibrant, safe, and healthy community. Accomplishments in FY2016: • Established the Cupertino Business & Professional Women’s Group monthly mixers, which draw an average attendance of 20-35 • Printed an updated version of the “How to Start a Business in Cupertino” guide • Engaged business and community stakeholder groups by facilitating four meetings and workshops to gather input for the Economic Development Strategic Plan • Coordinated small business training workshops regard - ing Santa Clara County Health Department Rating Procedures, Trademark and Patents, and Social Media • Published the Business Buzz “BizBuzz” electronic newsletter on a quarterly basis • Sponsored the Silicon Valley StartUp Cup business competition Rendering of the Cupertino Target project, scheduled for completion in 2018 Events put on by the Economic Development Division 89 21COMMUNITY DEVELOPMENT • Facilitated meetings with the Cupertino Chamber of Commerce leadership: twice a month at the LAC and monthly City-Chamber meetings • Met with and attended meetings for local and regional business organizations: SVEDA, CALED, SBDC • Actively recruited new businesses by attending ICSC and NorCal Alliance events and conducting outreach by email and phone Commissions Planning Commission The Planning Commission consists of five residents who are appointed to alternating, four-year terms by the City Council to hear and make recommendations on all advanced planning policy documents and current planning applications. The five members are: Chair Alan Takahashi, Vice Chair Margaret Gong, and Commissioners Don Sun, Winnie Lee and Geoff Paulsen. Housing Commission The Cupertino Housing Commission consists of five members who are appointed by the council to four-year terms. One must be a representative from a Cupertino financial institution and another from a Cupertino business. The committee assists in developing housing policies and strategies, recom - mends policies for implementation and monitoring of affordable housing projects, helps identify sources of funding for affordable housing, and performs other advisory functions authorized by the City Council. The five members are: Chair Harvey Barnett, Vice Chair Rajeev Raman and Commissioners Shirley Chu, Sue Bose and Nina Daruwalla. Fine Arts Commission The Cupertino Fine Arts Commission is a group of citizens appointed by the Cupertino City Council to foster, encourage, and assist in the realization, preser- vation, and advancement of fine arts for the benefit of the citizens of Cupertino. Some of the commission’s activities include: • Distributing fine arts grants to individuals and groups • Selecting an Emerging Artist of the Year • Overseeing the selection and installation of public art • Introducing new arts and cultural events to the com- munity • Exploring opportunities and developing strategies to collaborate with other Commissions to promote Art in the community • Implementing the Youth Art Award Program In FY2016, the Fine Arts Commission: • Launched the inaugural Young Artist Awards and selected three Cupertino students as the winners from hundreds of entrants • Created a broad outreach plan to connect with more artists and property owners • Reviewed and selected the "Energized by Art" utility box designs • Reviewed and approved the public art package for Main Street Cupertino The five members were: Chair Diana Matley, Vice Chair Michael Sanchez and Commissioners Russell Leong, Janki Choski and Rajeswari Mahalingam. ■ 45Target + 2 x 4, SWA, The Lighting Practice & WD | July 25, 2016 View K Another view of the Cupertino Target remodel project 90 22 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 Law Enforcement Overview Mission The principal mission of the Sheriff’s Office West Valley Patrol Division is the protection of life and property. The Sheriff’s Office is dedicated to the preservation of public safety by providing innovative and progressive services in partnership with the community. Goals and Objectives The Sheriff’s Office continues to make crime reduction in the City of Cupertino our main goal and objective. In re - ducing crime, we have incorporated a number of proactive measures, including but not limited to, frequent covert operations, targeted enforcement, probation searches, regional crime information sharing and education to our community. These and other measures have been implemented while maintaining a fiscally responsible budget. The Sheriff’s Office is also committed to working with various neighborhood watch programs to ensure that resi - dents have recent crime trend information. Residents are being encouraged to call The Sheriff’s Office anytime they see anything suspicious. Operating Budget The City of Cupertino’s Law Enforcement expenditures totaled $11.0 million in Fiscal Year 2015-2016. A total of 90 employees are assigned to the West Valley Division, covering the City of Cupertino. Of those employees, 83 are sworn deputies and 7 are non-sworn. All deputies are employees of the Santa Clara County Sheriff’s Office. Highlights from Last Fiscal Year During FY2016, the City of Cupertino did not experience any homicides. However, there was a 17% increase in crimes against persons compared to the previous Fiscal Year. There were 22 robbery cases in FY2016. Deputies and detectives arrested 12 suspects in these cases. Meanwhile, deputies and detectives continue to work on leads for the other cases where arrests have not yet been made. 91 Property Crimes FY 14-15 FY 15-16 Change % Variance Burglary*579 443 -136 -23% Theft **197 261 64 32% Auto Theft 45 70 25 56% Totals 821 774 -47 -6% Traffic Accidents FY 14-15 FY 15-16 Change % Variance Fatal 1 0 -1-100% Injury 91 132 41 45% Property Damage 361 311 -50 -14% Pedestrian or Bicycle Involved 53 79 26 49% Totals 506 522 16 3% Tickets/ Citations FY 14-15 FY 15-16 Change % Variance Speeding 1,7051,042 -663 -39% Moving 4,605 4,398 -207 -5% Non-Moving 4,082 4,125 43 1% Totals 10,392 9,565 -827 -8% *Includes auto, commercial and residential burglaries **Includes grand theft, Identity theft, forgery and fraud cases Crimes Against Persons FY 14-15 FY 15-16 Change % Variance Homicide 000 0% Rape 2222 0 0% Assault 31 51 20 65% Robbery 22 15 -7 -32% Totals 75 88 13 +17% 23LAW ENFORCEMENT Law Enforcement There was a decrease in overall property crimes by 6%, as shown in the table above. This decrease may be attributed to a significant decrease in burglaries, which went down by approximately 23%. Unfortunately, there has been a trend of increased thefts, especially identity theft and fraud cases, a trend seen in neigh- boring jurisdictions and counties as well. On a positive note, FY2016 saw an overall decrease in property crimes, whereas the previous fiscal year saw an increase of 14%. Traffic Related Information Throughout FY2016, there were a total of 522 traffic collisions, including pedestrian and bicycle related traffic collisions. This represents an increase in collisions of 3% when compared to the previous fiscal year, as seen in the table below. Cupertino has four dedicated motor deputies who focus on traffic including traffic enforcement, traffic education and collision response. During FY2016, West Valley Patrol Deputies issued a total of 9,565 citations. This total represents speed - ing, moving and non-moving citations. Besides target enforcement areas, efforts to increase safety of motorists in Cupertino include continued participation in grant funded enforcement programs sponsored by the Office of Traffic Safety, such as MADD’s Avoid the 13 DUI campaign and saturation patrols. Overall, Deputies made 98 arrests for DUI drivers in Cupertino during FY2016. Major Projects, Programs and Accomplishments The Sheriff’s Office West Valley Patrol Division’s School Resource Officers (SROs) remain busy and active throughout our schools. During FY2016, School Resource Officers provided presentations to students, faculty, and parents on the following topics: • Stranger Danger • Internet Safety • Bullying and Cyber Bullying • Digital Media Safety/Suicide Awareness • Traffic Calming Tips (in and around school campuses) • Career Day • School Attendance Review Board (SARB) • Bicycle/Pedestrian Safety • Bike Rodeo • Residential Security Checks • Mentorship In addition, School Resource Officers conducted and participated in the Chiefs of Police Association Active Shooter Protocol (Run, Hide, Defend) training exercises and lockdown drills at all public schools within the City of Cupertino. The training is first provided to all school staff and then the drills are conducted during the school day with staff and students participating. The exercises are extremely useful to school staff in providing them with a better level of knowledge and preparation in the event of a critical incident on their campus. The School Resource Officers also facilitated their annual Teen Academy with 40 participants in total for FY2016. Two academies were held during the fall 92 24 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 and spring seasons. This unique program provides high school students with a new perspective of law enforcement and raises their aware - ness of issues that may impact them currently and in their future. The program calls upon several members of the Sheriff’s Office to facilitate instruction in the areas of basic crime, criminal investigations, narcotics, and traffic investigations. Finally, in the spring of 2016, School Resource Officers created a Community Academy for adults residing in the City of Cupertino. This entails committing to a 12 week, 40-hour academy to receive education on police procedures and training, so the public may see what police do. The participants also receive 40 hours of community service credit. Productivity and Efficiency The Sheriff’s Office responded to a total of 37,987 calls for service within the City in FY2016. Of the 37,987 calls for service, 9,518 calls were categorized as Priority 1, 2, or 3, which represents a 21% decrease in calls from last fiscal year. The average response times to these calls remained well within target goal ranges. See the table below for the number of calls for service for each priority type and the average response times to these calls. Awards, Grants and Recognitions Heroes Run The West Valley Patrol Division was also recog- nized with an Appreciation Award on behalf of the Valley Medical Center Foundation for the Sheriff’s Annual Heroes Run, benefitting VMC Pediatrics. This event was hosted at the Cupertino City Hall. Commissions Public Safety Commission The West Valley Patrol Division’s Commander, Captain Rick Sung, acted as the City’s liaison to the Cupertino Public Safety Commission. In this capacity, he routinely attended meetings, advised the committee on policy (taking full advantage of his training and experience), and prepared meeting agendas. ■ Calls and Response Times Number of Calls FY14-15 Average Response Time FY14-15 Number of Calls FY15-16 Average Response Time FY15-16 Priority 1 73 4:48 63 4:03 Priority 2 4,317 6:36 4,326 6:58 Priority 3 5,331 11:18 5,129 13:01 Totals 9,721 9,518 Teen Academy participants enjoy a presentation Sheriff's Office robotics demo at Teen Academy 93 25CITY ATTORNEY City Attorney Overview City Attorney Randolph Stevenson Hom is appointed by the City Council to manage the legal affairs of the City, including the operation of the City Attorney’s Office. The City Attorney’s Office provides all legal services to the City Council, Commissions, City Manager, department directors, and City staff. Mission The mission of the City Attorney’s Office is to serve the City by defending it by all legal and ethical means, and to provide the organization and its leadership with high quality legal services and advice. These legal services include but are not limited to the following: (1) prosecute and defend the City in any legal action such as civil matters involving claims of personal injury or property damage, code enforcement, or any administrative action arising out of City business, (2) prepare and review proposed legislation including ordinances and resolutions, (3) draft and/ or review contracts, agreements, and other legal documents, (4) conduct legal research and analysis, and prepare legal memoranda. Goals and Objectives The goal of the City Attorney’s Office is to serve the City in a manner that supports the policy decisions set forth by City Council, and supports the execution of City policy by the City Manager’s Office and other departments. To that end, the City Attorney’s Office endeavors to provide comprehensive legal advice to assist the City’s leader- ship in its deliberations. It is committed to the defense of the City’s interests. Budget Actuals Actual expenditures for the City Attorney’s Office in Fiscal Year 2015-2016 were $1.68 million related to costs of operation, litigation, and staff. 94 26 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–2016 FY2016 Highlights The City Attorney’s Office provides legal support to all City departments. It may retain outside counsel as necessary. The office reviews all contracts and a variety of other City documents. It assists with the preparation of proposed resolutions and ordinances, and provides legal advice regarding the potential legal implications, if any. In this capacity, the City Attorney’s Office provided legal support to advance the following City projects: • Community Choice Aggregation and the City’s mem - bership in the Silicon Valley Clean Energy Authority • Completion of the Environmental Education Center at Blackberry Farm • Development Agreement for the Hamptons Project, including tenant relocation and affordable housing agreements • Election Matters including Election Code section 9212 reports related to initiatives, and defend the City in legal actions arising out of initiatives • First Amendment Issues • Legal Advice under new Fair Political Practices Commission Guidelines • Litigation and Claims including the resolution of various legal actions • Medical Marijuana Ordinance • Multiple ordinance amendments and projects — preparation and review of various ordinances, including but not limited to those related to transpor- tation, landscaping requirements, solar panels, and housing density to comply with state law • Requests for Proposals, Publicly Bid Contracts, and Grant Review Major Service Efforts and Accomplishments This past fiscal year coincided with an election year. Accordingly, in addition to its performance of routine legal services, the City Attorney’s Office provided sub - stantial legal support and advice to the City Council, City Clerk’s Office, and other departments arising out of the November 8, 2016 General Election. Specifically, the office prepared the City Attorney’s Ballot Title and Summary for four separate citizen-sponsored initiatives. It also prepared legal memoranda, Election Code section 9212 reports, ballot questions, and authored the City Attorney’s Impartial Analysis. In collaboration with outside counsel, the City Attorney’s Office successfully defended the City in legal actions arising out of initiatives, and resolved other legal actions arising out of contract and personal injury in civil court. Productivity and Efficiency Improvements The City Attorney’s Office is comprised by the City Attorney, Assistant City Attorney, and a Deputy City Attorney. Although the work load for the City Attorney’s Office increased significantly as compared to the previous fiscal year, it remains committed to its charge to defend the City, and to provide high quality professional legal services and advice to its clients. Productivity improvements included the facilitation of the contract review process with the continued introduction of exemplar contracts and related updates to such contracts, including those related to Public Works, and Parks & Recreation. In addition, the City Attorney’s Office continued to as- sist the City Clerk’s Office with the coordination of the City’s responses to Public Records Act requests. ■ 95 Administrative Services Operating Budget The Department’s Fiscal Year 2015-2016 operating expenditures totaled $4.5 million with 12.3 permanent, benefit- ted positions. FY2014 Actuals FY2015 Actuals FY2016 Budget FY2017 Final Budget $5.1 $5.2 $4.5 $6.6 4 Year Expenditure History (In Millions)Actual Expenditures Fiscal Year 2015-16 Administration $521,806 11% Finance $1,295,907 29% Human Resources $2,702,168 60% The 2016-2017 Adopted Budget Overview Mission The Administrative Services Department provides responsive and high-quality internal support services to other City departments in the areas of Budget, Finance, Treasury, Investment and Debt Management and Human Resources. In addition, department personnel assist the City Manager’s Office on special projects. Goals and Objectives The Department strives to provide internal and external customers with a service level that will: • Provide meaningful financial information to the public and to City departments • Ensure a financially-sustainable organization • Maintain a high-level of professionalism in all division deliverables • Cultivate a desirable work environment • Ensure compliance with laws and regulations • Deliver all service in a timely, accurate, and respect- ful manner 27ADMINISTRATIVE SERVICES96 Department Divisions Administration • Oversees and coordinates the Human Resources and Finance divisions • Provides staff support to the Fiscal Strategic and Audit Committees • Fulfills all duties of the City Treasurer Finance • Oversees all finance and treasury functions including, budget, investments, banking, payroll, accounts payable, general ledger, business license, and debt management • Prepares and monitors the budget and provides accurate and timely recording of $110.3 million in City revenues and $107.8 million in expenditures • Manages the City’s investment portfolio of $123.1 million to obtain safety of funds, cash flow liquidity, and a reasonable rate of return • Monitors and updates the City’s investment policies annually • Monitors performance of investment manager for funds in the City’s Other Post Employment Benefit (OPEB) trust • Assists the City Manager’s Office on special projects related to finance and treasury • Fulfills all duties of Deputy City Treasurer Human Resources • Responsible for the administration of a full range of human resources, employee benefits and labor rela- tions including hiring, labor negotiations, discipline, employee benefits, and retirement administration • Administers the Risk Management and Workers Compensation programs, City-wide training, and Wellness programs FY2016 Highlights • Supported initial efforts of the Silicon Valley Clean Energy Authority, a Cupertino JPA, to procure credit facilities and banking services to launch Authority operations • Successfully moved to online employee timesheet reporting, including all part-time employees • Enhanced budget development and reporting for increased transparency and accountability through OpenGov.org Major Service Efforts and Accomplishments • Assisted in preparing a balanced budget for FY2016 • Managed 5,493 active business licenses, including 1,114 new licenses and 2,449 renewals • Processed and paid 14,410 vendor invoices • Processed the bi-weekly payroll for 312 full- and part-time staff • Improved the forecasting and trend information on the quarterly budget reports to the City Council • Provided financial analysis and guidance to the Apple Campus 2 project team • Implemented financial components of the City’s land management software implementation Productivity and Efficiency Improvements • Continued the implementation of Business Analytics Reporting through the City’s new ERP system (New World) • Reduced the number of paystubs and checks being printed from over 300 to 31 — a 90% decrease • Added 8 years of historical monthly data to the City’s transparency portal that makes the City’s financial data available live 24/7/365 Awards, Grants & Recognitions • Awarded the Government Finance Officers’ Association (GFOA ) Award of Excellence for the City’s annual financial report • Awarded the California Society of Municipal Finance Officers (CSMFO) Excellence Award for the City’s an - nual budget and Consolidated Annual Financial Report (CAFR) Commissions The Administrative Services Department provides staff support for the Audit Committee and Fiscal Strategic Plan Committee. • Assisted in the development of a new budget and quarterly reporting • Recommended changes to the City’s Investment Policies that were adopted by Council ■ 28 CUPERTINO ANNUAL REPORT FISCAL YEAR 2015–201697 98 For additional information: • Visit our website: www.cupertino.org • Watch City Council meetings on Cable Channels 26/99 or on the web • Submit a request online to Access Cupertino: www.cupertino.org/accesscupertino • Follow the City at www.cupertino.org/twitter and www.cupertino.org/facebook For all City services call: 408-777-CITY (2489) Contact Information Sheriff & Fire (Dial 911 for emergencies) Sheriff Westside Station, 1601 S DeAnza Blvd 868-6600 Administrative Services Department/Finance 777-3220 Building Dept.777-3228 City Clerk 777-3223 City Manager 777-3212 Code Enforcement 777-3182 Cupertino City Hall • 10300 Torre Avenue • Cupertino, CA 95014 408-777-3220 • Fax: 408-777-3109 • www.cupertino.org Economic Development 777-7607 Emergency Preparedness 777-3120 Human Resources 777-3227 Library (Santa Clara County)446-1677 Neighborhood Watch 777-3177 Recreation & Community Services 777-3120 Planning Dept.777-3308 Public Works Dept. 777-3354 All phone numbers are area code 408 99 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2167 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/10/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: Council committee appointments Sponsors: Indexes: Code sections: Attachments:A - Committee Assignments Action ByDate Action ResultVer. City Council1/24/20171 Subject: Council committee appointments Approve Council committee appointments CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™100 2017 Council Committees 1] 1/13/2017 2017 Council Committees Barry Steven Savita Darcy Rod 2016 Representative Meetings Association of Bay Area Governments (ABAG)X Darcy 2x a year Alt Alternate - Savita Audit Committee (City of Cupertino)X X Rod and Darcy Quarterly Comprehensive County Expressway Planning Study Policy Advisory Board X Savita TBD Alt Alternate - Barry Disaster Council (Cupertino)X Savita Quarterly Alt Alternate - Darcy Economic Development Committee X X Barry and Savita Quarterly Environmental Review Committee X Rod 2x a month Alt Alternate - Savita Fiscal Strategic Planning Committee X X Rod and Darcy Monthly March-June Legislative Review Committee X X Barry and Gilbert As Needed League of California Cities - Peninsula Division All All All All All ALL 3x a year Dinner Meetings Santa Clara County Cities Association - Board of Directors X Rod Monthly Alt Alternate - Barry Santa Clara County Cities Association - City Selection Committee X Rod As Needed Alt Alternate - Barry Santa Clara County Cities Association - Legislative Committee X Rod (Chair for 2016)As Needed Alt Alternate - Barry 101 2017 Council Committees 2] 1/13/2017 2017 Council Committees Barry Steven Savita Darcy Rod 2016 Representative Meetings Santa Clara County Library District Joint Powers Authority - Board of Directors X Gilbert Quarterly Alt Alternate - Barry Santa Clara Valley Water Commission X Darcy Quarterly Alt Alternate - Savita 2nd Alternate - Timm Borden Santa Clara Valley Transportation Authority X Savita Monthly Policy Advisory Committee Alt Alternate - Barry School Board Liasion X Rod Quarterly FUHSD, CUSD, Foothill-DeAnza Community College District Alt Alternate - Barry Sister City Committees Taiwan, Hsinchu Bhubaneswar, India; Copertino, Italy; Toyokawa, Japan Gilbert Monthly Alternate - Darcy (3 cities) West Valley Mayors and City Managers X Barry Monthly Alt Alternate - Savita 85 Policy Advisory Board X Rod Monthly Alt Alternate - Barry Silicon Valley Clean Energy Authority (SVCEA) JPA X Rod 4x a year Alt Alternate - Darcy or as needed 102 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1883 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:8/3/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: Consider adopting a resolution supporting the prohibition of industrial clear-cut logging in the forests of California Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Resolution B - Resolution Letter C - Clear-Cutting Resolutions from Other Cities Action ByDate Action ResultVer. City Council1/24/20171 Subject:Consideradoptingaresolutionsupportingtheprohibitionofindustrialclear-cut logging in the forests of California AdoptResolutionNo.17-004supportingtheprohibitionofindustrialclear-cutlogginginthe forests of California CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™103 OFFICE OF THE CITY MANAGER CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: January 24, 2017 Subject Consider adopting a resolution supporting the prohibition of industrial clear-cut logging in the forests of California. Recommended Action Adopt the attached draft resolution supporting the prohibition of industrial clear-cut logging in the forests of California. Background The Sierra Club Loma Prieta Chapter requested that the Cupertino City Council consider adopting a resolution encouraging the State legislature and Governor to take steps to prohibit industrial clear-cut logging in the forests of California (Attachment B). Discussion At the request of Council, staff conducted research on clear-cutting in California and drafted the attached resolution. According to the proponents of this resolution, widespread industrial clear-cutting commonly involves the removal of virtually all trees in 20-30 acre tracts and requires broad, repeated application of toxic herbicides that can potentially enter waterways; all of which increase the potential risks of wildfires, landslides, soil erosion, pest invasions, tree diseases, and loss of biodiversity. Although clear-cutting is already prohibited in Santa Clara, Santa Cruz, San Mateo, San Francisco, and Marin Counties, it is still allowed on private land elsewhere in California. California forests are valuable resources that sequester carbon, release oxygen, cool streams, prevent flooding and siltation, resist fire, host recreation supporting the economy of mountain communities, and provide food, shelter and migration routes for wildlife. Cupertino values our urban forest as evidenced by our open space and “Tree City USA” status which the City has earned every year since 2012. Nearby cities have taken action at the behest of the Sierra Club. The City of Saratoga wrote a letter to the Governor stating their opposition to clear-cutting, while the City of Sunnyvale has placed the issue on their list of desired legislation. The cities of San 104 Francisco, Monte Sereno, Menlo Park, Brisbane, Berkeley, Daly City, and Davis have passed similar resolutions (Attachment C). The City of Cupertino’s Sustainability Commission recommends that Council adopt the draft resolution supporting the prohibition of industrial clear-cut logging in the forests of California. Sustainability Impact Adopting this resolution could encourage the State legislature to prohibit clear-cutting which would reduce the negative impacts described above throughout California, fostering resilient and biologically diverse forests. Fiscal Impact None anticipated. _____________________________________ Prepared by: Katy Nomura, Management Analyst Reviewed by: Jacqueline Guzman, Deputy City Manager Approved for Submission by: David Brandt, City Manager Attachments: A – Proposed Clear-Cutting Resolution B – Resolution Letter C – Clear-Cutting Resolutions from Other Cities 105 1 RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO SUPPORTING THE PROHIBITION OF INDUSTRIAL CLEAR-CUT LOGGING IN THE FORESTS OF CALIFORNIA WHEREAS, there is significant public opposition to the logging method known as widespread industrial clear-cutting; and, WHEREAS, the forests of California are not only revered by the people but are the source of more than 60% of the State’s developed water supply; and, WHEREAS, our forests fight global warming as they store carbon, release oxygen, cool streams, prevent flooding and siltation, resist fire, provide food, shelter and migration routes for wildlife, and host public recreation supporting the economy of mountain communities; and, WHEREAS, widespread industrial clear-cutting commonly involves the removal of virtually all trees in 20-30 acre tracts, which are then replaced with even-aged tree plantations, and requires broad, repeated application of toxic herbicides that can enter waterways – all of which increase the risk of wildfires, landslides, soil erosion, loss of biodiversity, pest invasions, and tree diseases; and, WHEREAS, clear-cutting is prohibited within the boundaries of Santa Clara, Santa Cruz, San Mateo, San Francisco and Marin Counties; and, WHEREAS, California's forests urgently need the protection of sustainable selective logging to generate forests with trees of multiple ages and species, that can produce sufficient wood products and create more jobs than clear-cutting. NOW THEREFORE, THE COUNCIL OF THE CITY OF CUPERTINO DOES RESOLVE AS FOLLOWS: SECTION 1. Encourages the State legislature and the Governor of California to prohibit industrial clear-cutting logging in the forests of California. PASSED AND ADOPTED at the regular meeting of the City Council, held on the 17th day of January, 2017 by the following vote: Vote Members of the City Council AYES: NOES: 106 2 ABSENT: ABSTAIN: ATTEST: __________________________________ Grace Schmidt, City Clerk APPROVED: _________________________________ Mayor Savita Vaidhyanathan, City of Cupertino 107 *Conservation Fund, Humboldt Redwood Company, Mendocino Redwood Company, Redwood Forest Foundation, Collins Pine, and Big Creek Lumber Sierra Club Loma Prieta Chapter 3921 E. Bayshore Rd., Suite 204 Palo Alto, CA 94303 Protecting the planet since 1933 Cupertino City Hall 10300 Torre Avenue Cupertino, CA 95014 Dear: Council, and Mayor Barry Chang The Loma Prieta Chapter of the Sierra Club is requesting that the City of Cupertino pass a resolution calling for a ban of clear-cutting California forests and send the resolution to our State Senator Jim Bealle, Assemblyperson Evan Lowe, and Governor Jerry Brown. Most efforts to combat climate change focus on reducing and eventually eliminating the emissions of greenhouse gases. Since more carbon dioxide has already been released into the atmosphere than is safe, it is necessary to encourage “the other side of the equation” – in vegetation preservation and expansion, which absorbs carbon dioxide. Maintaining mature trees is an effective means to remove carbon dioxide. The diagram below graphically demonstrates how nearly unrestrained destruction of our forests has left us with only a small fraction of the original forests. As a nation we have aggressively stolen from future generations. Distribution of Forests in Continental United States 108 *Conservation Fund, Humboldt Redwood Company, Mendocino Redwood Company, Redwood Forest Foundation, Collins Pine, and Big Creek Lumber Pg. 2 Nevertheless, harvesting forests for timber is currently an integral component of the developing our modern infrastructure. Many companies* profitably harvest forests in a manner that sustainably provides lumber and preserves the critical ecology of the forest with its myriad of insects, small animals, and foliage. Such methods are called selective logging in which a mixture of trees of different ages are harvested. This minimizes the disruption of the forest ecosystem and allows carbon contained in the soils to remain. An end to clear-cutting in California can be enacted by Governor Brown, the state legislature, the Board of Forestry or the California Air Resource Board (CARB). However, they will only take this action if the public demands changes. So far seven California cities have passed a resolution calling for a ban on clear-cutting in California: Davis, Berkeley, San Francisco, Daly City, Menlo Park, Brisbane, and Monte Sereno. In addition, Saratoga sent a letter to Governor Brown asking for end to clear-cutting and Sunnyvale has put ending clearcutting on their list of desired legislation. I have included sample resolutions from Menlo Park, San Francisco, and Brisbane. We are requesting that Cupertino join nine other California cities in taking action. Cities, citizens, and industry are taking action to combat climate change. Why shouldn’t the forestry industry do their part? Sincerely, Gary Latshaw, Ph.D. Member of the Forest Protection Committee of the Loma Prieta Chapter of the Sierra Club Karen Maki Chair of the Forest Protection Committee of the Loma Prieta Chapter of the Sierra Club 109 RESOLUTION NO. 3560 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTE SERENO OPPOSING WIDESPREAD INDUSTRIAL CLEAR-CUT LOGGING IN THE STATE OF CALIFORNIA. WHEREAS, there is significant public opposition to the logging method known as widespread industrial clear-cutting* as shown in Figures 1 & 3 attached hereto, and WHEREAS, the forests of California are not only revered by the people but are the source of more than 60% of our water supply, and WHEREAS, our forests fight global warming as they store carbon, release oxygen, cool streams, prevent flooding and siltation, resist fire, provide food, shelter and migration routes for wildlife, and host public recreation supporting the economy of mountain communities, and WHEREAS, widespread industrial clear-cutting commonly involves the removal of virtually all trees in 20-30 acre tracts, which are then replaced with even-aged tree plantations, and requires broad, repeated application of toxic herbicides that can enter waterways – all of which increase the risk of wildfires, landslides, soil erosion, loss of biodiversity, pest invasions, and tree diseases, and WHEREAS, clear-cutting is prohibited within the boundaries of Santa Clara, Santa Cruz, San Mateo, San Francisco and Marin Counties, and WHEREAS, California's forests urgently need the protection of sustainable selective logging, as shown in figure 2 (Page 2 attached hereto), to generate forests with trees of multiple ages and species, that can produce sufficient wood products and create more jobs than clear-cutting; NOW THEREFORE, BE IT RESOLVED that the City Council of the City Of Monte Sereno calls on the State Legislature and Governor of California to prohibit industrial clear-cut logging in the forests of California. Regularly adopted and passed this 10th day of June, 2014, by the following vote: AYES: Council Members Anstandig, Allan, Huff, Rogers and Mayor Craig NOES: None ABSENT: None APPROVED: ________________________ Burton Craig, Mayor ATTEST:_________________________ Andrea M. Chelemengos, City Clerk 110 111 112 113 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK TO PROTECT HEALTHY FORESTS BY LIMITING AND CLOSELY REGULATING WIDESPREAD INDUSTRY CLEAR-CUT LOGGING WHEREAS, our forests fight global warming as they store up to 20% of carbon emissions, release oxygen, cool streams, prevent flooding and siltation, resist fire, and provide food, shelter, migration routes for wildlife; and WHEREAS, our forests provide 75% of California’s clean water supply by capturing snow, rain and fog; storing, filtering and gradually releasing water throughout the year; and increasing humidity, rainfall, and lowering temperatures, and WHEREAS, clear-cut logging undermines the benefits of forests by increasing the risk of water supply contamination, worsening greenhouse gas emissions, and intensifying drought and wildfires; and WHEREAS, widespread industrial clear-cutting involves removal of virtually all trees in 20 to 30-acre tracts, often requires repeated application of toxic herbicides, then replacement by tree plantations, all of which increase the risk of wildfires, landslides, soil erosion, loss of biodiversity, pest invasions, and tree diseases; and WHEREAS, a new tree plantation emits more carbon than it stores for the first 20 years and requires 80% more water than a mature forest; and WHEREAS, 1,076,504 acres were clear-cut out of 3,334,743 acres logged, within the 13 million acres of privately owned forest land in California, between 1990 and 2008; and WHEREAS, the sustainable selective logging of trees of multiple ages and species produces sufficient wood products and creates more consistent jobs and revenues than clear-cutting, maintains a local supply, allows for more frequent logging of smaller harvests, and WHEREAS, the forests of California promote human health and well-being as well as economic value from jobs in recreation, tourism, sport and commercial fishing, and wood products. NOW THEREFORE BE IT RESOLVED that the City Council of the City of Menlo Park call on the state legislature and Governor of California to prohibit industrial clear-cut logging in the forests of California and adopt sustainable selective logging practices, which will leave our diverse ecosystems intact. PAGE 113 114 PASSED AND ADOPTED at a regular meeting of the Menlo Park City Council on the seventh day of April, 2015, by the following vote: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Menlo Park this seventh day of April, 2015. ________________________________ Pamela I. Aguilar, City Clerk PAGE 114 115 FILE NO. 140710 RESOLUTION NO. 222-14 1 [Urging the Prohibition of Clearcut Logging in California] 2 3 Resolution urging the California Legislature to prohibit the practice of clearcut logging 4 in California and enhance protections for California's forests. 5 6 WHEREAS, California's forests provide 75% of California's clean water supply by 7 capturing snow, rain, and fog and then storing, filtering, and gradually releasing water 8 throughout the year; and this process increases humidity and rainfall, cools temperatures, and 9 helps protect us from extreme weather; and 1 O WHEREAS, California's forests continuously remove carbon dioxide from the air and 11 store it in trees, roots, and forest soil, and this natural process is significant in the fight to 12 reverse the climate crisis; with deforestation causing 15% of all greenhouse gas emissions, 13 and intact forests absorbing up to 40% of human caused carbon dioxide releases; and 14 WHEREAS, California's forests provide other essential environmental services by 15 releasing oxygen, preventing flooding and siltation, and supporting a wide diversity of plant 16 and wildlife; and 17 WHEREAS, California's forests generate tremendous social, cultural, and economic 18 value from recreation, tourism, sport and commercial fishing, and wood products; and 19 WHEREAS, The widespread industrial logging method called clear-cutting commonly 20 involves the removal of virtually all trees and vegetation on large tracts, that are then 21 cultivated with crop-like plantations of even-aged trees of limited species (usually only one 22 species), with the repeated broad application of toxic herbicides used to prevent other tree 23 and plant species from growing; and 24 25 Supervisors Campos; Mar BOARD OF SUPERVISORS Page 1 116 1 WHEREAS, Clearcutting, for the purposes of this Resolution, is defined as any public 2 or private forest management or timber harvest method in which 60% or more of cubic tree 3 volume of any area greater than 2.5 acres is felled within any 15-year period; and 4 WHEREAS, Clearcutting also refers to any forest management or timber harvesting 5 practice that results in the above conditions and includes, but is not limited to, methods 6 referred to as "even aged management," "seed tree removal," "shelterwood removal," "fuels 7 reduction," "forest type conversion," "regeneration cutting," "patch cutting," and "plantation 8 forestry;" and 9 WHEREAS, Timber and biotechnology corporations are currently seeking legal 1 O permission to openly cultivate genetically engineered trees for clearcut harvesting on tree 11 plantations in the United States, a practice which threatens to further increase both clear-cut 12 plantation forestry and toxic herbicide application in such forestry; and genetically engineered 13 trees and their pollen are potentially hazardous to human health, wildlife, and biological 14 integrity of wild tree and plant species; and 15 WHEREAS, Clearcut logging destroys many benefits of forests, as it contaminates our 16 water supply with herbicides and sediment, greatly increases greenhouse gas emissions for 17 many decades, and promotes drought, catastrophic wildfires, soil erosion, landslides, pest 18 invasion, and tree diseases; and 19 WHEREAS, Within the San Francisco County, Santa Clara County, Santa Cruz 20 County, San Mateo County, Marin County and in most public forests, the outmoded practice 21 of clearcutting is prohibited; and 22 WHEREAS, Selective logging and modern forest management methods that promote 23 fire-resilient, productive forests with trees of multiple ages and species can produce a 24 sustainable supply of wood and forest products, and stable long term jobs; now, therefore, be 25 it Supervisors Campos; Mar BOARD OF SUPERVISORS Page 2 117 1 RESOLVED, That that the Board of Supervisors of the City and County of San 2 Francisco call on the California Legislature and the Governor of California to prohibit the 3 practice of industrial clearcut logging in the forests of California, require full immediate public 4 disclosure of the locations and extent of clearcutting in California forests, and prohibit the 5 outdoor cultivation of genetically engineered trees in California; and, be it 6 FURTHER RESOLVED, That the San Francisco Board of Supervisors hereby directs 7 the Clerk of the Board to send a copy of this resolution to the President pro Tempore of the 8 California Senate, Darrell Steinberg, and Speaker of the California State Assembly, Toni 9 Atkins. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Supervisors Campos; Mar BOARD OF SUPERVISORS Page 3 118 City and County of San Francisco Tails Resolution City Hall I Dr. Carlton B. Goodlett Place San Francisco, CA 94102-4689 File Number: 140710 Date Passed: June 24, 2014 Resolution urging the California Legislature to prohibit the practice of clearcut logging in California and enhance protections for California's forests. June 24, 2014 Board of Supervisors -ADOPTED Ayes: 11 -Avalos, Breed, Campos, Chiu, Cohen, Farrell, Kim, Mar, Tang, Wiener and Yee File No. 140710 Unsigned Mayor I hereby certify that the foregoing Resolution was ADOPTED on 6/24/2014 by the Board of Supervisors of the City and County of San Francisco. 7/3/14 Date Approved I hereby certify that the foregoing resolution, not being signed by the Mayor within the time limit as set forth in Section 3.103 of the Charter, or time waived pursuant to Board Rule 2.14.2, became effective without his approval in accordance with the provision of said Section 3.103 of the Charter or Board Rule 2.14.2. City and County of San Francisco Page60 Printed at 3:38 pm on 6125114 119 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2248 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:1/9/2017 City Council On agenda:Final action:1/24/2017 Title:Subject: Letters of support for SB 1 and AB 1 regarding transportation funding Sponsors: Indexes: Code sections: Attachments:Staff Report A - AB 1 Letter of Support to Assembly Member Frazier B - SB 1 Letter of Support to Senator Beall C - Estimated Local Streets and Roads Funding with SB 1 and AB 1 D - AB 1 E - SB 1 Action ByDate Action ResultVer. City Council1/24/20171 Subject: Letters of support for SB 1 and AB 1 regarding transportation funding Direct staff to send letters of support for SB 1 and AB 1 from the City Manager CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™120 1 PUBLIC WORKS DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: January 24, 2017 Subject Letters of support for SB 1 and AB 1 regarding transportation funding. Recommended Action Direct staff to send letters of support for SB 1 and AB 1 from the City Manager. Discussion As the first order of business in the new legislative session, Senator Jim Beall (San Jose) and Assembly Member Jim Frazier (Oakley) introduced similar transportation funding proposals. The bills introduced on Dec. 5 are SB 1 and AB 1 respectively and each generates approximately $6 billion annually, with about $2.25 billion going to local streets and roads. In addition to providing revenue for local streets and roads, of which Cupertino would receive an estimated one-time funding of approximately $325,000 and then ongoing funding of just over $2 million annually, the bills also include the following provisions:  Establishes local reporting requirements.  Requires cities and counties to maintain existing general fund levels for transportation funding.  Makes permanent the National Environmental Protection Act (NEPA) delegation authority.  Promotes employment and training opportunities through pre-apprenticeship.  Incorporates “complete streets” design concept into the Highway Design Manual.  Restores independence to the California Transportation Commission.  Creates the Office of Transportation Inspector General as an independent entity and office within state government  Permanently extends and expands the limited CEQA exemption for transportation repair, maintenance, and minor alteration projects to existing roadways. 121 2  Creates an Advanced Mitigation program for transportation projects. _____________________________________ Prepared by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: A – AB 1 Letter of Support to Assembly Member Frazier B – SB 1 Letter of Support to Senator Beall C – Estimated Local Streets and Roads Funding with SB 1 and AB 1 D – AB 1 E – SB 1 122 OFFICE OF THE CITY MANAGER CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 • FAX: (408) 777-3366 davidb@cupertino.org January 25, 2017 The Honorable Jim Frazier Chair, Assembly Transportation Committee California State Capitol, Room 3091 Sacramento, CA 95814 RE: AB 1 (Frazier). Transportation Funding. (as introduced December 5, 2016) Notice of Support Dear Assembly Member Frazier: The City of Cupertino is pleased to support your AB 1, which represents a comprehensive transportation proposal inclusive of sensible reforms, modest increases to existing revenue sources, and robust infrastructure investment. The proposal presents an opportunity for the new legislature to advance a comprehensive framework to address the overwhelming backlog of repair and deferred maintenance as well as other transportation needs in the early part of 2017. It would be an understatement to say the time to act is now to address the $73 billion unmet funding need for local streets and roads and $72 billion backlog to the State’s Highway System. For local streets and roads alone, the funding need grows by an additional $20 billion in just ten years. With the expressed commitment of Legislative Leadership and this Administration to getting this done in the early parts of 2017, we urge this legislature’s immediate attention to this proposal as the vehicle to deliver this victory for California. For the City of Cupertino, this funding would support an ongoing and proactive pavement management program that would increase our pavement condition index into 123 the range that our community expects, and then allows us to apply the right treatment at the right time to avoid costly future reconstructions. When fully phased in, AB 1 would generate an additional $6 billion annually to provide desperately needed funding for the state and local transportation network. To repair and maintain existing transportation infrastructure, the proposal would generate up to $2.4 billion and $2.2 billion annually for the state’s highway system and local streets and roads, respectively. The bill also provides nearly $600 million for freight and the state’s trade corridors, over a half billion for transit and intercity rail, and up to $150 million to support active transportation programs throughout the state. The proposal takes the approach of raising revenue over a variety of sources, such as a 12 cent increase to the gas tax to restore some of its purchasing power, ending the Board of Equalization’s “true up” process on the price based excise tax on gas, a $38 increase to the vehicle registration fee, a $100 vehicle registration fee on zero emission vehicles, a 20 cent increase to the diesel excise tax, $300 million from existing cap and trade funds, and returning $500 million in vehicle weight fees phased in over five years. In addition to raising revenue, the proposal includes a series of reforms to improve efficiency, transparency, and accountability, such as restoring independence to the California Transportation Commission, creating the Office of the Transportation Inspection General with audit and investigation authority over the state’s transportation spending, and establishing local reporting requirements on local transportation spending. To streamline roadwork, the bill permanently extends and expands on the limited exemptions to California’s Environmental Quality Act (CEQA) for repair, maintenance, and minor alteration projects on existing roadways to cities and counties with populations greater than 100,000 and state roadways. The proposal also creates an advanced mitigation program which authorizes the Natural Resources Agency to establish state and regional transportation mitigation plans and mitigation banks to allow transportation projects to fulfill their environmental requirements in advance. Overall, this proposal provides a comprehensive transportation reform and funding package that picks up where we left off at the end of the special session, while giving this legislature an opportunity for early action. While the legislature has had success in recent years in balancing the state budget, we can no longer afford to ignore our most basic repair and maintenance needs if we wish to avoid systematic failure of the state’s entire transportation infrastructure. There may be no better way to put Californians back to work and stimulate our economy than making the roads we and our children rely on everyday safe again. 124 For these reasons, the City of Cupertino Supports AB 1 (Frazier). Sincerely, David Brandt, City Manager City of Cupertino cc: Assembly Member Evan Low Seth Miller, League of California Cities, smiller@cacities.org Meg Desmond, League of California Cities, mdesmond@cacities.org 125 OFFICE OF THE CITY MANAGER CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 • FAX: (408) 777-3366 davidb@cupertino.org January 25, 2017 The Honorable Jim Beall Chair, Senate Transportation Committee California State Capitol, Room 2082 Sacramento, CA 95814 RE: SB 1 (Beall). Transportation Funding. (as introduced December 5, 2016) Notice of Support Dear Senator Beall: The City of Cupertino is pleased to support your SB 1, which represents a comprehensive transportation proposal inclusive of sensible reforms, modest increases to existing revenue sources, and robust infrastructure investment. The proposal presents an opportunity for the new legislature to advance a comprehensive framework to address the overwhelming backlog of repair and deferred maintenance as well as other transportation needs in the early part of 2017. It would be an understatement to say the time to act is now to address the $73 billion unmet funding need for local streets and roads and $72 billion backlog to the State’s Highway System. For local streets and roads alone, the funding need grows by an additional $20 billion in just ten years. With the expressed commitment of Legislative Leadership and this Administration to getting this done in the early parts of 2017, we urge this legislature’s immediate attention to this proposal as the vehicle to deliver this victory for California. For the City of Cupertino, this funding would support an ongoing and proactive pavement management program that would increase our pavement condition index into 126 the range that our community expects, and then allows us to apply the right treatment at the right time to avoid costly future reconstructions. When fully phased in, SB 1 would generate an additional $6 billion annually to provide desperately needed funding for the state and local transportation network. To repair and maintain existing transportation infrastructure, the proposal would generate up to $2.4 billion and $2.2 billion annually for the state’s highway system and local streets and roads, respectively. The bill also provides nearly $600 million for freight and the state’s trade corridors, over a half billion for transit and intercity rail, and up to $150 million to support active transportation programs throughout the state. The proposal takes the approach of raising revenue over a variety of sources, such as a 12 cent increase to the gas tax to restore some of its purchasing power, ending the Board of Equalization’s “true up” process on the price based excise tax on gas, a $38 increase to the vehicle registration fee, a $100 vehicle registration fee on zero emission vehicles, a 20 cent increase to the diesel excise tax, $300 million from existing cap and trade funds, and returning $500 million in vehicle weight fees phased in over five years. In addition to raising revenue, the proposal includes a series of reforms to improve efficiency, transparency, and accountability, such as restoring independence to the California Transportation Commission, creating the Office of the Transportation Inspection General with audit and investigation authority over the state’s transportation spending, and establishing local reporting requirements on local transportation spending. To streamline roadwork, the bill permanently extends and expands on the limited exemptions to California’s Environmental Quality Act (CEQA) for repair, maintenance, and minor alteration projects on existing roadways to cities and counties with populations greater than 100,000 and state roadways. The proposal also creates an advanced mitigation program which authorizes the Natural Resources Agency to establish state and regional transportation mitigation plans and mitigation banks to allow transportation projects to fulfill their environmental requirements in advance. Overall, this proposal provides a comprehensive transportation reform and funding package that picks up where we left off at the end of the special session, while giving this legislature an opportunity for early action. While the legislature has had success in recent years in balancing the state budget, we can no longer afford to ignore our most basic repair and maintenance needs if we wish to avoid systematic failure of the state’s entire transportation infrastructure. There may be no better way to put Californians back to work and stimulate our economy than making the roads we and our children rely on everyday safe again. 127 For these reasons, the City of Cupertino Supports SB 1 (Beall). Sincerely, David Brandt, City Manager City of Cupertino cc: Assembly Member Evan Low Seth Miller, League of California Cities, smiller@cacities.org Meg Desmond, League of California Cities, mdesmond@cacities.org 128 Estimated 15 December 2016 ALAMEDA COUNTY 34,432,526 5,459,572 ALAMEDA 2,636,402 418,024 ALBANY 638,649 101,263 BERKELEY 4,086,116 647,889 DUBLIN 1,921,073 304,603 EMERYVILLE 363,616 57,654 FREMONT 7,793,515 1,235,729 HAYWARD 5,259,490 833,937 LIVERMORE 2,958,117 469,035 NEWARK 1,520,649 241,112 OAKLAND 14,125,035 2,239,645 PIEDMONT 382,295 60,616 PLEASANTON 2,574,893 408,271 SAN LEANDRO 3,042,433 482,404 UNION CITY 2,502,445 396,784 ALPINE COUNTY 662,483 105,042 AMADOR COUNTY 3,159,103 500,903 AMADOR 6,364 1,009 IONE 272,385 43,189 JACKSON 159,998 25,369 PLYMOUTH 34,573 5,482 SUTTER CREEK 86,036 13,642 BUTTE COUNTY 11,267,838 1,786,612 BIGGS60,064 9,524 CHICO3,083,473 488,911 GRIDLEY233,237 36,982 OROVILLE557,188 88,347 PARADISE902,503 143,100 CALAVERAS COUNTY 4,822,368 764,628 ANGELS CAMP 131,961 20,924 COLUSA COUNTY 3,783,569 599,917 COLUSA212,975 33,769 WILLIAMS182,874 28,996 CONTRA COSTA COUNTY 28,753,944 4,559,184 ANTIOCH 3,725,528 590,714 BRENTWOOD 1,943,399 308,143 CLAYTON 388,315 61,571 CONCORD 4,336,863 687,647 DANVILLE 1,503,001 238,314 EL CERRITO 835,524 132,480 HERCULES 852,278 135,136 LAFAYETTE 865,315 137,203 MARTINEZ 1,286,036 203,912 MORAGA 566,442 89,814 OAKLEY 1,334,369 211,576 ORINDA 640,266 101,520 PINOLE 651,756 103,341 PITTSBURG 2,326,451 368,879 PLEASANT HILL 1,175,197 186,338 RICHMOND 3,692,779 585,522 SAN PABLO 1,022,733 162,163 SAN RAMON 2,702,554 428,513 WALNUT CREEK 2,300,307 364,733 $352 Million One-time Loan RepayAnnual at full Phase-in Local Streets & Roads Funding AB1 (Frazier) and SB1 (Beall) – 12Dec2016 versions $2.2 Billion* 15 December 2016 CaliforniaCityFinance.com Page 1 of 11 129 Estimated 15 December 2016 $352 Million One-time Loan RepayAnnual at full Phase-in Local Streets & Roads Funding AB1 (Frazier) and SB1 (Beall) – 12Dec2016 versions $2.2 Billion* DEL NORTE COUNTY 1,968,330 312,096 CRESCENT CITY262,925 41,689 EL DORADO COUNTY 10,158,020 1,610,641 PLACERVILLE367,159 58,216 SOUTH LAKE TAHOE747,803 118,571 FRESNO COUNTY 34,518,947 5,473,275 CLOVIS3,589,336 569,120 COALINGA568,609 90,158 FIREBAUGH267,603 42,431 FOWLER204,925 32,493 FRESNO17,893,839 2,837,221 HURON 234,510 37,184 KERMAN492,412 78,076 KINGSBURG402,867 63,878 MENDOTA385,666 61,151 ORANGE COVE321,922 51,043 PARLIER519,279 82,336 REEDLEY876,805 139,025 SANGER864,421 137,061 SAN JOAQUIN139,013 22,042 SELMA822,590 130,429 GLENN COUNTY 4,592,133 728,122 ORLAND268,807 42,622 WILLOWS213,491 33,851 HUMBOLDT COUNTY 8,961,385 1,420,904 ARCATA 615,704 97,625 BLUE LAKE 43,345 6,873 EUREKA 935,390 148,314 FERNDALE 47,163 7,478 FORTUNA 413,909 65,629 RIO DELL 115,999 18,393 TRINIDAD 12,625 2,002 IMPERIAL COUNTY 15,599,193 2,473,386 BRAWLEY903,810 143,307 CALEXICO1,411,564 223,816 CALIPATRIA265,057 42,027 EL CENTRO1,542,769 244,619 HOLTVILLE214,867 34,069 IMPERIAL600,155 95,160 WESTMORLAND80,257 12,725 INYO COUNTY 5,534,386 877,524 BISHOP133,509 21,169 KERN COUNTY 32,486,391 5,150,995 ARVIN 691,901 109,707 BAKERSFIELD 12,711,235 2,015,475 CALIFORNIA CITY 485,738 77,018 DELANO 1,824,648 289,314 MARICOPA 40,214 6,376 MCFARLAND 482,883 76,565 RIDGECREST 977,634 155,012 SHAFTER 618,181 98,018 TAFT 325,293 51,578 TEHACHAPI 495,852 78,622 WASCO 898,891 142,527 15 December 2016 CaliforniaCityFinance.com Page 2 of 11 130 Estimated 15 December 2016 $352 Million One-time Loan RepayAnnual at full Phase-in Local Streets & Roads Funding AB1 (Frazier) and SB1 (Beall) – 12Dec2016 versions $2.2 Billion* KINGS COUNTY 6,804,802 1,078,960 AVENAL 533,383 84,572 CORCORAN 853,585 135,343 HANFORD 1,919,697 304,384 LEMOORE 871,198 138,136 LAKE COUNTY 4,814,242 763,339 CLEARLAKE524,611 83,182 LAKEPORT 163,507 25,925 LASSEN COUNTY 4,680,750 742,173 SUSANVILLE617,390 97,892 LOS ANGELES COUNTY 208,045,885 32,987,456 AGOURA HILLS 714,400 113,274 ALHAMBRA 2,942,809 466,608 ARCADIA 1,987,019 315,059 ARTESIA 579,618 91,903 AVALON 132,099 20,945 AZUSA 1,700,255 269,590 BALDWIN PARK 2,650,472 420,255 BELL 1,243,070 197,099 BELLFLOWER 2,686,902 426,031 BELL GARDENS 1,474,930 233,863 BEVERLY HILLS 1,198,280 189,998 BRADBURY 37,394 5,929 BURBANK 3,649,365 578,638 CALABASAS 832,910 132,065 CARSON 3,204,357 508,078 CERRITOS 1,718,935 272,552 CLAREMONT 1,248,127 197,901 COMMERCE 449,273 71,236 COMPTON 3,388,676 537,304 COVINA 1,681,369 266,595 CUDAHY 834,905 132,381 CULVER CITY 1,368,219 216,943 DIAMOND BAR 1,949,419 309,097 DOWNEY 3,918,241 621,271 DUARTE 751,277 119,121 EL MONTE 3,982,708 631,492 EL SEGUNDO 584,812 92,727 GARDENA 2,078,285 329,530 GLENDALE 6,852,002 1,086,444 GLENDORA 1,770,364 280,706 HAWAIIAN GARDENS 500,358 79,336 HAWTHORNE 3,015,463 478,127 HERMOSA BEACH 680,171 107,847 HIDDEN HILLS 65,396 10,369 HUNTINGTON PARK 2,040,375 323,519 INDUSTRY 15,136 2,400 INGLEWOOD 3,864,335 612,723 IRWINDALE 50,672 8,035 LA CANADA FLINTRIDGE 708,379 112,320 LA HABRA HEIGHTS 187,105 29,667 LAKEWOOD 2,807,132 445,095 15 December 2016 CaliforniaCityFinance.com Page 3 of 11 131 Estimated 15 December 2016 $352 Million One-time Loan RepayAnnual at full Phase-in Local Streets & Roads Funding AB1 (Frazier) and SB1 (Beall) – 12Dec2016 versions $2.2 Billion* LA MIRADA 1,703,558 270,114 LANCASTER 5,531,084 877,001 LA PUENTE 1,399,765 221,945 LA VERNE 1,136,668 180,228 LAWNDALE 1,149,087 182,198 LOMITA 713,230 113,089 LONG BEACH 16,263,934 2,578,786 LOS ANGELES 136,124,370 21,583,684 LYNWOOD 2,455,557 389,350 MALIBU 444,973 70,554 MANHATTAN BEACH 1,230,273 195,070 MAYWOOD 959,229 152,094 MONROVIA 1,286,793 204,032 MONTEBELLO 2,205,223 349,657 MONTEREY PARK 2,135,011 338,524 NORWALK 3,686,587 584,540 PALMDALE 5,401,221 856,410 PALOS VERDES ESTATES 472,322 74,891 PARAMOUNT 1,902,428 301,646 PASADENA 4,868,045 771,870 PICO RIVERA 2,207,906 350,082 POMONA 5,243,322 831,374 RANCHO PALOS VERDES 1,464,232 232,166 REDONDO BEACH 2,342,516 371,426 ROLLING HILLS (2) ROLLING HILLS ESTATES 282,877 44,853 ROSEMEAD 1,892,624 300,092 SAN DIMAS 1,194,152 189,343 SAN FERNANDO 844,813 133,952 SAN GABRIEL 1,393,814 221,001 SAN MARINO 461,451 73,167 SANTA CLARITA 7,335,298 1,163,074 SANTA FE SPRINGS 606,381 96,147 SANTA MONICA 3,209,002 508,815 SIERRA MADRE 382,983 60,725 SIGNAL HILL 398,532 63,191 SOUTH EL MONTE 716,945 113,678 SOUTH GATE 3,321,285 526,618 SOUTH PASADENA 900,404 142,767 TEMPLE CITY 1,247,886 197,863 TORRANCE 5,105,994 809,599 VERNON 4,231 671 WALNUT 1,040,862 165,038 WEST COVINA 3,729,071 591,276 WEST HOLLYWOOD 1,232,405 195,408 WESTLAKE VILLAGE 289,757 45,943 WHITTIER 2,991,073 474,260 15 December 2016 CaliforniaCityFinance.com Page 4 of 11 132 Estimated 15 December 2016 $352 Million One-time Loan RepayAnnual at full Phase-in Local Streets & Roads Funding AB1 (Frazier) and SB1 (Beall) – 12Dec2016 versions $2.2 Billion* MADERA COUNTY 9,865,041 1,564,187 CHOWCHILLA643,981 102,109 MADERA2,200,304 348,877 MARIN COUNTY 7,817,857 1,239,588 BELVEDERE72,964 11,569 CORTE MADERA326,497 51,769 FAIRFAX262,615 41,640 LARKSPUR424,746 67,347 MILL VALLEY496,712 78,758 NOVATO1,843,018 292,226 ROSS85,761 13,598 SAN ANSELMO435,857 69,109 SAN RAFAEL2,037,004 322,984 SAUSALITO251,125 39,818 TIBURON316,487 50,182 MARIPOSA COUNTY 3,087,484 489,547 MENDOCINO COUNTY 7,211,969 1,143,519 FORT BRAGG252,604 40,053 POINT ARENA15,480 2,455 UKIAH552,991 87,682 WILLITS168,632 26,738 MERCED COUNTY 13,041,370 2,067,821 ATWATER 998,412 158,307 DOS PALOS 172,795 27,398 GUSTINE 193,263 30,644 LIVINGSTON 472,494 74,918 LOS BANOS 1,277,814 202,608 MERCED 2,811,295 445,755 MODOC COUNTY 4,521,308 716,892 ALTURAS 97,251 15,420 MONO COUNTY 3,348,365 530,912 MAMMOTH LAKES 289,310 45,873 MONTEREY COUNTY 14,225,669 2,255,602 CARMEL-BY-THE-SEA128,899 20,438 DEL REY OAKS57,105 9,055 GONZALES287,487 45,583 GREENFIELD580,340 92,018 KING CITY461,554 73,183 MARINA775,805 123,010 MONTEREY968,827 153,616 PACIFIC GROVE529,358 83,934 SALINAS5,322,478 843,924 SAND CITY12,453 1,975 SEASIDE1,158,341 183,665 SOLEDAD885,405 140,389 NAPA COUNTY 5,506,018 873,026 AMERICAN CANYON 693,140 109,903 CALISTOGA 180,982 28,696 NAPA 2,716,659 430,749 SAINT HELENA 208,640 33,082 YOUNTVILLE 103,787 16,456 15 December 2016 CaliforniaCityFinance.com Page 5 of 11 133 Estimated 15 December 2016 $352 Million One-time Loan RepayAnnual at full Phase-in Local Streets & Roads Funding AB1 (Frazier) and SB1 (Beall) – 12Dec2016 versions $2.2 Billion* NEVADA COUNTY 5,638,726 894,068 GRASS VALLEY444,629 70,500 NEVADA CITY109,876 17,422 TRUCKEE557,670 88,423 ORANGE COUNTY 71,040,027 11,264,004 ALISO VIEJO 1,727,053 273,839 ANAHEIM 12,089,545 1,916,901 BREA 1,490,514 236,334 BUENA PARK 2,847,244 451,455 COSTA MESA 3,902,933 618,843 CYPRESS 1,691,965 268,275 DANA POINT 1,176,780 186,588 FOUNTAIN VALLEY 1,961,563 311,023 FULLERTON 4,851,945 769,317 GARDEN GROVE 6,012,350 953,310 HUNTINGTON BEACH 6,824,723 1,082,118 IRVINE 8,613,388 1,365,726 LAGUNA BEACH 803,429 127,390 LAGUNA HILLS 1,066,216 169,058 LAGUNA NIGUEL 2,230,404 353,650 LAGUNA WOODS 572,841 90,829 LA HABRA 2,135,562 338,612 LAKE FOREST 2,754,465 436,744 LA PALMA 549,207 87,082 LOS ALAMITOS 405,206 64,249 MISSION VIEJO 3,324,898 527,191 NEWPORT BEACH 3,001,428 475,902 ORANGE 4,819,333 764,147 PLACENTIA 1,803,526 285,964 RANCHO SANTA MARGARITA 1,689,935 267,954 SAN CLEMENTE 2,249,772 356,721 SAN JUAN CAPISTRANO 1,246,097 197,579 SANTA ANA 11,533,320 1,828,707 SEAL BEACH 849,147 134,640 STANTON 1,349,161 213,921 TUSTIN 2,738,331 434,186 VILLA PARK 205,028 32,509 WESTMINSTER 3,168,512 502,395 YORBA LINDA 2,329,582 369,375 PLACER COUNTY 14,642,375 2,321,674 AUBURN 475,349 75,371 COLFAX 68,595 10,876 LINCOLN 1,576,825 250,019 LOOMIS 227,836 36,125 ROCKLIN 2,072,712 328,646 ROSEVILLE 4,416,432 700,263 15 December 2016 CaliforniaCityFinance.com Page 6 of 11 134 Estimated 15 December 2016 $352 Million One-time Loan RepayAnnual at full Phase-in Local Streets & Roads Funding AB1 (Frazier) and SB1 (Beall) – 12Dec2016 versions $2.2 Billion* PLUMAS COUNTY 3,719,520 589,762 PORTOLA72,379 11,476 RIVERSIDE COUNTY 57,105,281 9,054,531 BANNING1,048,912 166,314 BEAUMONT 1,461,377 231,714 BLYTHE716,120 113,547 CALIMESA287,349 45,562 CANYON LAKE375,002 59,460 CATHEDRAL CITY1,819,901 288,561 COACHELLA1,510,776 239,546 CORONA5,513,987 874,290 DESERT HOT SPRINGS967,830 153,458 EASTVALE2,085,818 330,724 HEMET2,829,562 448,651 INDIAN WELLS178,677 28,331 INDIO2,896,574 459,277 JURUPA VALLEY3,741,903 593,311 LAKE ELSINORE2,009,896 318,686 LA QUINTA1,365,502 216,512 MENIFEE2,937,305 465,735 MORENO VALLEY6,903,191 1,094,560 MURRIETA3,690,474 585,156 NORCO930,986 147,616 PALM DESERT1,756,259 278,470 PALM SPRINGS1,603,452 254,241 PERRIS2,508,087 397,679 RANCHO MIRAGE 615,394 97,576 RIVERSIDE10,915,586 1,730,760 SAN JACINTO1,578,821 250,336 TEMECULA3,746,925 594,107 WILDOMAR1,174,715 186,261 SACRAMENTO COUNTY 42,468,255 6,733,705 CITRUS HEIGHTS2,929,117 464,437 ELK GROVE5,603,841 888,537 FOLSOM2,576,923 408,593 GALT846,498 134,220 ISLETON28,209 4,473 RANCHO CORDOVA2,377,502 376,973 SACRAMENTO16,515,953 2,618,746 SAN BENITO COUNTY 3,192,214 506,153 HOLLISTER1,283,319 203,481 SAN JUAN BAUTISTA66,393 10,527 15 December 2016 CaliforniaCityFinance.com Page 7 of 11 135 Estimated 15 December 2016 $352 Million One-time Loan RepayAnnual at full Phase-in Local Streets & Roads Funding AB1 (Frazier) and SB1 (Beall) – 12Dec2016 versions $2.2 Billion* SAN BERNARDINO COUNTY 55,285,882 8,766,050 ADELANTO 1,138,113 180,458 APPLE VALLEY 2,456,073 389,431 BARSTOW 805,217 127,674 BIG BEAR LAKE177,680 28,173 CHINO2,905,656 460,717 CHINO HILLS2,669,358 423,249 COLTON1,836,448 291,184 FONTANA7,028,478 1,114,425 GRAND TERRACE424,918 67,374 HESPERIA 3,170,954 502,782 HIGHLAND1,869,059 296,355 LOMA LINDA817,051 129,550 MONTCLAIR1,322,983 209,770 NEEDLES169,940 26,945 ONTARIO5,806,049 920,599 RANCHO CUCAMONGA5,987,925 949,437 REDLANDS2,421,741 383,988 RIALTO3,512,037 556,864 SAN BERNARDINO7,359,447 1,166,903 TWENTYNINE PALMS889,121 140,978 UPLAND2,607,127 413,382 VICTORVILLE4,168,265 660,914 YUCAIPA1,821,242 288,774 YUCCA VALLEY 734,627 116,481 SAN DIEGO COUNTY 79,580,992 12,618,247 CARLSBAD 3,806,542 603,560 CHULA VISTA8,875,005 1,407,208 CORONADO808,314 128,165 DEL MAR145,790 23,116 EL CAJON3,489,746 553,329 ENCINITAS2,116,263 335,552 ESCONDIDO5,067,018 803,419 IMPERIAL BEACH 920,597 145,969 LA MESA2,023,209 320,797 LEMON GROVE901,264 142,903 NATIONAL CITY2,058,091 326,328 OCEANSIDE5,905,983 936,444 POWAY1,687,045 267,495 SAN DIEGO47,062,271 7,462,126 SAN MARCOS3,124,513 495,418 SANTEE1,919,732 304,390 SOLANA BEACH450,787 71,476 VISTA3,316,676 525,887 SAN FRANCISCO COUNTY 16,187,073 2,566,599 SAN FRANCISCO29,089,310 4,612,359 SAN JOAQUIN COUNTY 22,971,301 3,642,296 ESCALON255,012 40,434 LATHROP700,158 111,016 LODI2,191,979 347,557 MANTECA2,538,325 402,473 RIPON513,327 81,392 STOCKTON10,560,984 1,674,534 TRACY2,934,243 465,249 15 December 2016 CaliforniaCityFinance.com Page 8 of 11 136 Estimated 15 December 2016 $352 Million One-time Loan RepayAnnual at full Phase-in Local Streets & Roads Funding AB1 (Frazier) and SB1 (Beall) – 12Dec2016 versions $2.2 Billion* SAN LUIS OBISPO COUNTY 13,226,386 2,097,157 ARROYO GRANDE 599,536 95,061 ATASCADERO 1,003,434 159,103 EL PASO DE ROBLES 1,049,978 166,483 GROVER BEACH 452,576 71,760 MORRO BAY 353,777 56,094 PISMO BEACH 265,264 42,060 SAN LUIS OBISPO 1,575,621 249,828 SAN MATEO COUNTY 19,335,542 3,065,816 ATHERTON 238,569 37,827 BELMONT 920,150 145,898 BRISBANE 156,214 24,769 BURLINGAME 1,028,237 163,036 COLMA 61,646 9,775 DALY CITY 3,639,939 577,144 EAST PALO ALTO 1,002,334 158,929 FOSTER CITY 1,114,239 176,672 HALF MOON BAY 414,563 65,733 HILLSBOROUGH 392,856 62,291 MENLO PARK 1,144,615 181,488 MILLBRAE 787,707 124,898 PACIFICA 1,326,182 210,277 PORTOLA VALLEY 155,732 24,693 REDWOOD CITY 2,815,285 446,388 SAN BRUNO 1,527,701 242,230 SAN CARLOS 1,013,067 160,630 SAN MATEO 3,489,230 553,247 SOUTH SAN FRANCISCO 2,277,086 361,052 WOODSIDE 190,546 30,213 SANTA BARBARA COUNTY 13,490,960 2,139,107 BUELLTON169,630 26,896 CARPINTERIA466,026 73,892 GOLETA1,058,338 167,809 GUADALUPE247,857 39,300 LOMPOC1,495,709 237,157 SANTA BARBARA3,133,492 496,842 SANTA MARIA3,511,865 556,836 SOLVANG188,826 29,940 SANTA CLARA COUNTY 43,257,742 6,858,885 CAMPBELL1,439,911 228,310 CUPERTINO2,055,649 325,941 GILROY1,823,238 289,090 LOS ALTOS1,033,260 163,832 LOS ALTOS HILLS286,936 45,496 LOS GATOS1,049,394 166,390 MILPITAS2,497,698 396,031 MONTE SERENO118,717 18,824 MORGAN HILL1,437,227 227,885 MOUNTAIN VIEW 2,680,297 424,984 PALO ALTO2,302,508 365,082 SAN JOSE34,967,600 5,544,412 SANTA CLARA4,161,557 659,851 SARATOGA1,059,507 167,994 SUNNYVALE5,092,268 807,423 15 December 2016 CaliforniaCityFinance.com Page 9 of 11 137 Estimated 15 December 2016 $352 Million One-time Loan RepayAnnual at full Phase-in Local Streets & Roads Funding AB1 (Frazier) and SB1 (Beall) – 12Dec2016 versions $2.2 Billion* SANTA CRUZ COUNTY 8,919,499 1,414,263 CAPITOLA345,796 54,829 SANTA CRUZ2,194,387 347,939 SCOTTS VALLEY410,332 65,062 WATSONVILLE1,791,830 284,110 SHASTA COUNTY 10,413,161 1,651,096 ANDERSON 353,261 56,013 REDDING 3,134,249 496,962 SHASTA LAKE 349,649 55,440 SIERRA COUNTY 1,806,629 286,456 LOYALTON26,454 4,195 SISKIYOU COUNTY 7,460,749 1,182,966 DORRIS32,302 5,122 DUNSMUIR56,761 9,000 ETNA25,491 4,042 FORT JONES28,862 4,576 MONTAGUE49,640 7,871 MOUNT SHASTA116,756 18,513 TULELAKE34,848 5,525 WEED102,067 16,184 YREKA270,011 42,813 SOLANO COUNTY 12,505,632 1,982,875 BENICIA952,521 151,030 DIXON659,049 104,498 FAIRFIELD3,849,130 610,312 RIO VISTA281,845 44,689 SUISUN CITY993,768 157,570 VACAVILLE3,257,816 516,555 VALLEJO4,117,180 652,814 SONOMA COUNTY 18,774,653 2,976,882 CLOVERDALE299,561 47,498 COTATI252,708 40,069 HEALDSBURG402,041 63,747 PETALUMA2,048,218 324,763 ROHNERT PARK1,413,078 224,056 SANTA ROSA5,953,765 944,020 SEBASTOPOL 258,246 40,947 SONOMA376,103 59,634 WINDSOR940,343 149,099 STANISLAUS COUNTY 18,456,241 2,926,395 CERES1,616,455 256,303 HUGHSON248,442 39,393 MODESTO7,196,147 1,141,011 NEWMAN369,911 58,653 OAKDALE749,007 118,761 PATTERSON725,649 115,058 RIVERBANK807,901 128,100 TURLOCK2,443,930 387,506 WATERFORD298,805 47,378 15 December 2016 CaliforniaCityFinance.com Page 10 of 11 138 Estimated 15 December 2016 $352 Million One-time Loan RepayAnnual at full Phase-in Local Streets & Roads Funding AB1 (Frazier) and SB1 (Beall) – 12Dec2016 versions $2.2 Billion* SUTTER COUNTY 5,682,202 900,962 LIVE OAK293,988 46,614 YUBA CITY2,282,934 361,979 TEHAMA COUNTY 6,468,858 1,025,693 CORNING263,613 41,798 RED BLUFF490,554 77,782 TEHAMA14,448 2,291 TRINITY COUNTY 3,464,085 549,260 TULARE COUNTY 22,396,312 3,551,127 DINUBA824,447 130,723 EXETER 363,684 57,665 FARMERSVILLE375,243 59,498 LINDSAY436,132 69,152 PORTERVILLE1,921,349 304,646 TULARE2,145,332 340,161 VISALIA4,497,996 713,196 WOODLAKE264,954 42,011 TUOLUMNE COUNTY 4,525,459 717,550 SONORA168,667 26,744 VENTURA COUNTY 21,817,445 3,459,343 CAMARILLO2,310,145 366,293 FILLMORE531,181 84,223 MOORPARK1,229,034 194,874 OJAI261,858 41,520 OXNARD7,091,638 1,124,440 PORT HUENEME783,235 124,189 SAN BUENAVENTURA3,761,305 596,387 SANTA PAULA1,051,148 166,669 SIMI VALLEY4,351,105 689,905 THOUSAND OAKS4,449,698 705,538 YOLO COUNTY 7,964,748 1,262,879 DAVIS2,296,488 364,128 WEST SACRAMENTO1,763,793 279,665 WINTERS239,223 37,931 WOODLAND1,978,901 313,772 YUBA COUNTY 4,530,673 718,377 MARYSVILLE415,285 65,847 WHEATLAND118,889 18,851 Total1,110,000,000$ 1,110,000,000$ 176,000,000$ 176,000,000$ *Includes $770 m illion returned HUTA funds and $1.45 billion new RMRA allocations to LSR at full implementation (Yr5) 15 December 2016 CaliforniaCityFinance.com Page 11 of 11 139 california legislature—2017–18 regular session ASSEMBLY BILL No. 1 Introduced by Assembly Member Frazier (Coauthors: Assembly Members Low, Mullin, and Santiago) December 5, 2016 An act to amend Sections 13975, 14500, 14526.5, and 16965 of, to add Sections 14033, 14526.7, and 16321 to, to add Part 5.1 (commencing with Section 14460) to Division 3 of Title 2 of, and to repeal Section 14534.1 of, the Government Code, to amend Section 39719 of the Health and Safety Code, to amend Section 21080.37 of, and to add Division 13.6 (commencing with Section 21200) to, the Public Resources Code, to amend Section 99312.1 of, and to add Section 99314.9 to, the Public Utilities Code, to amend Sections 6051.8, 6201.8, 7360, 8352.4, 8352.5, 8352.6, and 60050 of the Revenue and Taxation Code, to amend Sections 183.1, 2192, 2192.1, and 2192.2 of, to add Sections 820.1, 2103.1, and 2192.4 to, and to add Chapter 2 (commencing with Section 2030) to Division 3 of, the Streets and Highways Code, and to add Sections 9250.3, 9250.6, and 9400.5 to the Vehicle Code, relating to transportation, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. legislative counsel’s digest AB 1, as introduced, Frazier. 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 99 140 in the Motor Vehicle Account and used to fund the Department of Motor Vehicles and the Department of the California Highway Patrol. Existing law provides for the monthly transfer of excess balances in the Motor Vehicle Account to the State Highway Account. This bill would create the Road Maintenance and Rehabilitation Program to address 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 bill would create in the State Transportation Fund, including revenues attributable to a $0.012 per gallon increase in the motor vehicle fuel (gasoline) tax imposed by the bill with an inflation adjustment, as provided, an increase of $38 in the annual vehicle registration fee with an inflation adjustment, as provided, a new $165 annual vehicle registration fee with an inflation adjustment, as provided, applicable to zero-emission motor vehicles, as defined, and certain miscellaneous revenues described in (7) below that are not restricted as to expenditure by Article XIX of the California Constitution. This bill would annually 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 $80,000,000 of the funds available for the program to be annually transferred to the State Highway Account for expenditure on the Active Transportation Program. The bill would require $30,000,000 of the funds available for the program in each of 4 fiscal years beginning in 2017–18 to be transferred to the Advance Mitigation Fund created by the bill pursuant to (12) below. The bill would continuously appropriate $2,000,000 annually of the funds available for the program to the California State University for the purpose of conducting transportation research and transportation-related workforce education, training, and development, and $3,000,000 annually to the institutes for transportation studies at the University of California. The bill would require the 99 — 2 —AB 1 141 remaining funds available for the program to be allocated 50% for maintenance of the state highway system or to the state highway operation and protection program and 50% to cities and counties pursuant to a specified formula. The bill would impose various requirements on the department and agencies receiving these funds. The bill would authorize a city or county to spend its apportionment of funds under the program on transportation priorities other than those allowable pursuant to the program if the city’s or county’s average Pavement Condition Index meets or exceeds 80. The bill would also require the department to annually identify savings achieved through efficiencies implemented at the department and to propose, from the identified savings, an appropriation to be included in the annual Budget Act of up to $70,000,000 from the State Highway Account for expenditure on the Active Transportation Program. (2)  Existing law establishes in state government the Transportation Agency, which includes various departments and state entities, including the California Transportation Commission. Existing law vests the California Transportation Commission with specified powers, duties, and functions relative to transportation matters. Existing law requires the commission to retain independent authority to perform the duties and functions prescribed to it under any provision of law. This bill would exclude the California Transportation Commission from the Transportation Agency, establish it as an entity in state government, and require it to act in an independent oversight role. The bill would also make conforming changes. (3)  Existing law creates various state agencies, including the Department of Transportation, the High-Speed Rail Authority, the Department of the California Highway Patrol, the Department of Motor Vehicles, and the State Air Resources Board, with specified powers and duties. Existing law provides for the allocation of state transportation funds to various transportation purposes. This bill would create the Office of the Transportation Inspector General in state government, as an independent office that would not be a subdivision of any other government entity, to ensure that all of the above-referenced state agencies and all other state agencies expending state transportation funds are operating efficiently, effectively, and in compliance with federal and state laws. The bill would provide for the Governor to appoint the Transportation Inspector General for a 6-year term, subject to confirmation by the Senate, and would provide that the Transportation Inspector General may not be 99 AB 1— 3 — 142 removed from office during the term except for good cause. The bill would specify the duties and responsibilities of the Transportation Inspector General and would require an annual report to the Legislature and Governor. This bill would require the department to update the Highway Design Manual to incorporate the “complete streets” design concept by July 1, 2017. (4)  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 require the Department of Finance, on or before January 1, 2017, to compute the amount of outstanding loans made from specified transportation funds. The bill would require the Department of Transportation to prepare a loan repayment schedule and would require the outstanding loans to be repaid pursuant to that schedule, as prescribed. The bill would appropriate funds for that purpose from the Budget Stabilization Account. The bill would require the repaid funds to be transferred, pursuant to a specified formula, to cities and counties and to the department for maintenance of the state highway system and for purposes of the state highway operation and protection program. (5)  The Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Proposition 1B) created the Trade Corridors Improvement Fund and provided for allocation by the California Transportation Commission of $2 billion in bond funds for infrastructure improvements on highway and rail corridors that have a high volume of freight movement and for specified categories of projects eligible to receive these funds. Existing law continues the Trade Corridors Improvement Fund in existence in order to receive revenues from sources other than the bond act for these purposes. This bill would deposit the revenues attributable to a $0.20 per gallon increase in the diesel fuel excise tax imposed by the bill into the Trade Corridors Improvement Fund. The bill would require revenues apportioned to the state from the national highway freight program established by the federal Fixing America’s Surface Transportation Act to be allocated for trade corridor improvement projects approved pursuant to these provisions. Existing law requires the commission, in determining projects eligible for funding, to consult various state freight and regional infrastructure and goods movement plans and the statewide port master plan. 99 — 4 —AB 1 143 This bill would revise the list of plans to be consulted by the commission when determining eligible projects for funding. The bill would also expand eligible projects to include, among others, rail landside access improvements, landside freight access improvements to airports, and certain capital and operational improvements. (6)  Existing law requires all moneys, except for fines and penalties, collected by the State Air Resources Board from the auction or sale of allowances as part of a market-based compliance mechanism relative to reduction of greenhouse gas emissions to be deposited in the Greenhouse Gas Reduction Fund. Existing law continuously appropriates 10% of the annual proceeds of the fund to the Transit and Intercity Rail Capital Program and 5% of the annual proceeds of the fund to the Low Carbon Transit Operations Program. This bill would, beginning in the 2017–18 fiscal year, instead continuously appropriate 20% of those annual proceeds to the Transit and Intercity Rail Capital Program and 10% of those annual proceeds to the Low Carbon Transit Operations Program, thereby making an appropriation. (7)  Article XIX of the California Constitution restricts the expenditure of revenues from taxes imposed by the state on fuels used in motor vehicles upon public streets and highways to street and highway and certain mass transit purposes. Existing law requires certain miscellaneous revenues deposited in the State Highway Account that are not restricted as to expenditure by Article XIX of the California Constitution to be transferred to the Transportation Debt Service Fund in the State Transportation Fund, as specified, and requires the Controller to transfer from the fund to the General Fund an amount of those revenues necessary to offset the current year debt service made from the General Fund on general obligation transportation bonds issued pursuant to Proposition 116 of 1990. This bill would delete the transfer of these miscellaneous revenues to the Transportation Debt Service Fund, thereby eliminating the offsetting transfer to the General Fund for debt service on general obligation transportation bonds issued pursuant to Proposition 116 of 1990. The bill, subject to a specified exception, would instead require the miscellaneous revenues to be retained in the State Highway Account and to be deposited in the Road Maintenance and Rehabilitation Account. (8)  Article XIX of the California Constitution requires gasoline excise tax revenues from motor vehicles traveling upon public streets and 99 AB 1— 5 — 144 highways to be deposited in the Highway Users Tax Account, for allocation to city, county, and state transportation purposes. Existing law generally provides for statutory allocation of gasoline excise tax revenues attributable to other modes of transportation, including aviation, boats, agricultural vehicles, and off-highway vehicles, to particular accounts and funds for expenditure 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, commencing July 1, 2017, would instead transfer to the Highway Users Tax Account for allocation to state and local transportation purposes under a specified formula the portion of gasoline excise tax revenues currently being deposited in the General Fund that are attributable to boats, agricultural vehicles, and off-highway vehicles. Because that account is continuously appropriated, the bill would make an appropriation. (9)  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 annually modify both the gasoline and diesel excise tax rates on a going-forward basis so that the various changes in the taxes imposed on gasoline and diesel are revenue neutral. This bill would eliminate the annual rate adjustment to maintain revenue neutrality for the gasoline and diesel excise tax rates and would reimpose 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. 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 revenues to the Controller for allocation by formula to transportation agencies for public transit purposes under the State Transit Assistance Program. This bill would increase the additional sales and use tax on diesel fuel by an additional 3.5%. By increasing the revenues deposited in the Public Transportation Account that are continuously appropriated, the bill would thereby make an appropriation. The bill would restrict expenditures of revenues from this increase in the sales and use tax on diesel fuel to transit capital purposes and certain transit services and 99 — 6 —AB 1 145 would require a recipient transit agency to comply with certain requirements, including submitting a list of proposed projects to the Department of Transportation, as a condition of receiving a portion of these funds. The bill would require the Controller to compute and publish quarterly proposed allocations for each eligible recipient agency under the State Transit Assistance Program. The bill would require an existing required audit of transit operator finances to verify that these new revenues have been expended in conformance with these specific restrictions and all other generally applicable requirements. This bill would, beginning July 1, 2019, and every 3rd year thereafter, require the State Board of Equalization to recompute the gasoline and diesel excise tax rates and the additional sales and use tax rate on diesel fuel based upon the percentage change in the California Consumer Price Index transmitted to the board by the Department of Finance, as prescribed. (10)  Existing law requires the Department of Transportation to prepare a state highway operation and protection program every other year for the expenditure of transportation capital improvement funds for projects that are necessary to preserve and protect the state highway system, excluding projects that add new traffic lanes. The program is required to be based on an asset management plan, as specified. Existing law requires the 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. The bill would require the commission, as part of its review of the program, to hold at least one hearing in northern California and one hearing in southern California regarding the proposed program. The bill would require the department to submit any change to a programmed project as an amendment to the commission for its approval. This bill, on and after August 1, 2017, would also require the commission to make an allocation of all capital and support costs for each project in the program, and would require the department to submit a supplemental project allocation request to the commission for each project that experiences cost increases above the amounts in its allocation. The bill would require the commission to establish guidelines to provide exceptions to the requirement for a supplemental project 99 AB 1— 7 — 146 allocation requirement that the commission determines are necessary to ensure that projects are not unnecessarily delayed. (11)  Existing law imposes weight fees on the registration of commercial motor vehicles and provides for the deposit of net weight fee revenues into the State Highway Account. Existing law provides for the transfer of certain weight fee revenues from the State Highway Account to the Transportation Debt Service Fund to reimburse the General Fund for payment of debt service on general obligation bonds issued for transportation purposes. Existing law also provides for the transfer of certain weight fee revenues to the Transportation Bond Direct Payment Account for direct payment of debt service on designated bonds, which are defined to be certain transportation general obligation bonds issued pursuant to Proposition 1B of 2006. Existing law also provides for loans of weight fee revenues to the General Fund to the extent the revenues are not needed for bond debt service purposes, with the loans to be repaid when the revenues are later needed for those purposes, as specified. This bill, notwithstanding these provisions or any other law, would only authorize specified amounts of weight fee revenues to be transferred from the State Highway Account to the Transportation Debt Service Fund, the Transportation Bond Direct Payment Account, or any other fund or account for the purpose of payment of the debt service on transportation general obligation bonds in accordance with a prescribed schedule, with no more than $500,000,000 to be transferred in the 2021– 22 and subsequent fiscal years. The bill would also prohibit loans of weight fee revenues to the General Fund. (12)  The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact 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 project that may 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. CEQA, until January 1, 2020, exempts a project or an activity to repair, maintain, or make minor alterations to an existing roadway, as defined, other than a state roadway, if the project or activity is carried 99 — 8 —AB 1 147 out by a city or county with a population of less than 100,000 persons to improve public safety and meets other specified requirements. This bill would extend the above-referenced exemption indefinitely and delete the limitation of the exemption to projects or activities in cities and counties with a population of less than 100,000 persons. The bill would also expand the exemption to include state roadways. This bill would also establish the Advance Mitigation Program in the Department of Transportation. The bill would authorize the department to undertake mitigation measures in advance of construction of a planned transportation project. The bill would require the department to establish a steering committee to advise the department on advance mitigation measures and related matters. The bill would create the Advance Mitigation Fund as a continuously appropriated revolving fund, to be funded initially from the Road Maintenance and Rehabilitation Program pursuant to (1) above. The bill would provide for reimbursement of the revolving fund at the time a planned transportation project benefiting from advance mitigation is constructed. (13)  Existing federal law requires the United States Secretary of Transportation to carry out a surface transportation project delivery program, under which the participating states assume certain responsibilities for environmental review and clearance of transportation projects that would otherwise be the responsibility of the federal government. Existing law, until January 1, 2017, when these provisions are repealed, provides that the State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of the responsibilities the Department of Transportation assumed as a participant in this program. This bill would reenact these provisions. (14)  This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no. The people of the State of California do enact as follows: line 1 SECTION 1. The Legislature finds and declares all of the line 2 following: line 3 (a)  Over the next 10 years, the state faces a $59 billion shortfall line 4 to adequately maintain the existing state highway system in order line 5 to keep it in a basic state of good repair. 99 AB 1— 9 — 148 line 1 (b)  Similarly, cities and counties face a $78 billion shortfall line 2 over the next decade to adequately maintain the existing network line 3 of local streets and roads. line 4 (c)  Statewide taxes and fees dedicated to the maintenance of line 5 the system have not been increased in more than 20 years, with line 6 those revenues losing more than 55 percent of their purchasing line 7 power, while costs to maintain the system have steadily increased line 8 and much of the underlying infrastructure has aged past its expected line 9 useful life. line 10 (d)  California motorists are spending $17 billion annually in line 11 extra maintenance and car repair bills, which is more than $700 line 12 per driver, due to the state’s poorly maintained roads. line 13 (e)  Failing to act now to address this growing problem means line 14 that more drastic measures will be required to maintain our system line 15 in the future, essentially passing the burden on to future generations line 16 instead of doing our job today. line 17 (f)  A funding program will help address a portion of the line 18 maintenance backlog on the state’s road system and will stop the line 19 growth of the problem. line 20 (g)  Modestly increasing various fees can spread the cost of road line 21 repairs broadly to all users and beneficiaries of the road network line 22 without overburdening any one group. line 23 (h)  Improving the condition of the state’s road system will have line 24 a positive impact on the economy as it lowers the transportation line 25 costs of doing business, reduces congestion impacts for employees, line 26 and protects property values in the state. line 27 (i)  The federal government estimates that increased spending line 28 on infrastructure creates more than 13,000 jobs per $1 billion spent. line 29 (j)  Well-maintained roads benefit all users, not just drivers, as line 30 roads are used for all modes of transport, whether motor vehicles, line 31 transit, bicycles, or pedestrians. line 32 (k)  Well-maintained roads additionally provide significant health line 33 benefits and prevent injuries and death due to crashes caused by line 34 poorly maintained infrastructure. line 35 (l)  A comprehensive, reasonable transportation funding package line 36 will do all of the following: line 37 (1)  Ensure these transportation needs are addressed. line 38 (2)  Fairly distribute the economic impact of increased funding. line 39 (3)  Restore the gas tax rate previously reduced by the State line 40 Board of Equalization pursuant to the gas tax swap. 99 — 10 —AB 1 149 line 1 (4)  Direct increased revenue to the state’s highest transportation line 2 needs. line 3 SEC. 2. Section 13975 of the Government Code is amended line 4 to read: line 5 13975. There is in the state government the Transportation line 6 Agency. The agency consists of the Department of the California line 7 Highway Patrol, the California Transportation Commission, the line 8 Department of Motor Vehicles, the Department of Transportation, line 9 the High-Speed Rail Authority, and the Board of Pilot line 10 Commissioners for the Bays of San Francisco, San Pablo, and line 11 Suisun. line 12 SEC. 3. Section 14033 is added to the Government Code, to line 13 read: line 14 14033. On or before July 1, 2017, the department shall update line 15 the Highway Design Manual to incorporate the “complete streets” line 16 design concept. line 17 SEC. 4. Part 5.1 (commencing with Section 14460) is added line 18 to Division 3 of Title 2 of the Government Code, to read: line 19 line 20 PART 5.1. OFFICE OF THE TRANSPORTATION INSPECTOR line 21 GENERAL line 22 line 23 14460. (a)  There is hereby created in state government the line 24 independent Office of the Transportation Inspector General, which line 25 shall not be a subdivision of any other governmental entity, to line 26 ensure that the Department of Transportation, the High-Speed Rail line 27 Authority, the Department of the California Highway Patrol, the line 28 Department of Motor Vehicles, the State Air Resources Board, line 29 and all other state agencies expending state transportation funds line 30 are operating efficiently, effectively, and in compliance with line 31 applicable federal and state laws. line 32 (b)  The Governor shall appoint, subject to confirmation by the line 33 Senate, the Transportation Inspector General to a six-year term. line 34 The Transportation Inspector General may not be removed from line 35 office during that term, except for good cause. A finding of good line 36 cause may include substantial neglect of duty, gross misconduct, line 37 or conviction of a crime. The reasons for removal of the line 38 Transportation Inspector General shall be stated in writing and line 39 shall include the basis for removal. The writing shall be sent to line 40 the Secretary of the Senate and the Chief Clerk of the Assembly 99 AB 1— 11 — 150 line 1 at the time of the removal and shall be deemed to be a public line 2 document. line 3 14461. The Transportation Inspector General shall review line 4 policies, practices, and procedures and conduct audits and line 5 investigations of activities involving state transportation funds in line 6 consultation with all affected state agencies. Specifically, the line 7 Transportation Inspector General’s duties and responsibilities shall line 8 include, but not be limited to, all of the following: line 9 (a)  To examine the operating practices of all state agencies line 10 expending state transportation funds to identify fraud and waste, line 11 opportunities for efficiencies, and opportunities to improve the line 12 data used to determine appropriate project resource allocations. line 13 (b)  To identify best practices in the delivery of transportation line 14 projects and develop policies or recommend proposed legislation line 15 enabling state agencies to adopt these practices when practicable. line 16 (c)  To provide objective analysis of and, when possible, offer line 17 solutions to concerns raised by the public or generated within line 18 agencies involving the state’s transportation infrastructure and line 19 project delivery methods. line 20 (d)  To conduct, supervise, and coordinate audits and line 21 investigations relating to the programs and operations of all state line 22 transportation agencies with state-funded transportation projects. line 23 (e)  To recommend policies promoting economy and efficiency line 24 in the administration of programs and operations of all state line 25 agencies with state-funded transportation projects. line 26 (f)  To ensure that the Secretary of Transportation and the line 27 Legislature are fully and currently informed concerning fraud or line 28 other serious abuses or deficiencies relating to the expenditure of line 29 funds or administration of programs and operations. line 30 14462. The Transportation Inspector General shall report at line 31 least annually to the Governor and Legislature with a summary of line 32 his or her findings, investigations, and audits. The summary shall line 33 be posted on the Transportation Inspector General’s Internet Web line 34 site and shall otherwise be made available to the public upon its line 35 release to the Governor and Legislature. The summary shall line 36 include, but need not be limited to, significant problems discovered line 37 by the Transportation Inspector General and whether line 38 recommendations of the Transportation Inspector General relative line 39 to investigations and audits have been implemented by the affected 99 — 12 —AB 1 151 line 1 agencies. The report shall be submitted to the Legislature in line 2 compliance with Section 9795. line 3 SEC. 5. Section 14500 of the Government Code is amended line 4 to read: line 5 14500. There is in the Transportation Agency state government line 6 a California Transportation Commission. The commission shall line 7 act in an independent oversight role. line 8 SEC. 6. Section 14526.5 of the Government Code is amended line 9 to read: line 10 14526.5. (a)  Based on the asset management plan prepared line 11 and approved pursuant to Section 14526.4, the department shall line 12 prepare a state highway operation and protection program for the line 13 expenditure of transportation funds for major capital improvements line 14 that are necessary to preserve and protect the state highway system. line 15 Projects included in the program shall be limited to capital line 16 improvements relative to the maintenance, safety, operation, and line 17 rehabilitation rehabilitation, and operation of state highways and line 18 bridges that do not add a new traffic lane to the system. line 19 (b)  The program shall include projects that are expected to be line 20 advertised prior to July 1 of the year following submission of the line 21 program, but which have not yet been funded. The program shall line 22 include those projects for which construction is to begin within line 23 four fiscal years, starting July 1 of the year following the year the line 24 program is submitted. line 25 (c)  (1)  The department, at a minimum, shall specify, for each line 26 project in the state highway operation and protection program, the line 27 capital and support budget, as well as a projected delivery date, line 28 budget for each of the following project components: line 29 (1)  Completion of project line 30 (A)  Project approval and environmental documents. line 31 (2)  Preparation of plans, line 32 (B)  Plans, specifications, and estimates. line 33 (3)  Acquisition of rights-of-way, including, but not limited to, line 34 support activities. line 35 (C)  Rights-of-way. line 36 (D)  Construction. line 37 (2)  The department shall specify, for each project in the state line 38 highway operation and protection program, a project delivery line 39 date for each of the following components: line 40 (A)  Environmental document completion. 99 AB 1— 13 — 152 line 1 (B)  Plans, specifications, and estimate completion. line 2 (C)  Right-of-way certification. line 3 (4) line 4 (D)  Start of construction. line 5 (d)  The program department shall be submitted submit its line 6 proposed program to the commission not later than January 31 of line 7 each even-numbered year. Prior to submitting the plan, its proposed line 8 program, the department shall make a draft of its proposed program line 9 available to transportation planning agencies for review and line 10 comment and shall include the comments in its submittal to the line 11 commission. The department shall provide the commission with line 12 detailed information for all programmed projects, including, but line 13 not limited to, cost, scope, schedule, and performance metrics as line 14 determined by the commission. line 15 (e)  The commission may shall review the proposed program line 16 relative to its overall adequacy, consistency with the asset line 17 management plan prepared and approved pursuant to Section line 18 14526.4 and funding priorities established in Section 167 of the line 19 Streets and Highways Code, the level of annual funding needed line 20 to implement the program, and the impact of those expenditures line 21 on the state transportation improvement program. The commission line 22 shall adopt the program and submit it to the Legislature and the line 23 Governor not later than April 1 of each even-numbered year. The line 24 commission may decline to adopt the program if the commission line 25 determines that the program is not sufficiently consistent with the line 26 asset management plan prepared and approved pursuant to Section line 27 14526.4. line 28 (f)  As part of the commission’s review of the program required line 29 pursuant to subdivision (a), the commission shall hold at least one line 30 hearing in northern California and one hearing in southern line 31 California regarding the proposed program. line 32 (f) line 33 (g)  Expenditures for these projects shall not be subject to line 34 Sections 188 and 188.8 of the Streets and Highways Code. line 35 (h)  Following adoption of the state highway operation and line 36 protection program by the commission, any change to a line 37 programmed project shall be submitted as an amendment by the line 38 department to the commission for its approval before the change line 39 may be implemented. 99 — 14 —AB 1 153 line 1 SEC. 7. Section 14526.7 is added to the Government Code, to line 2 read: line 3 14526.7. (a)  On and after August 1, 2017, an allocation by the line 4 commission of all capital and support costs for each project in the line 5 state highway operation and protection program shall be required. line 6 (b)  For a project that experiences increases in capital or support line 7 costs above the amounts in the commission’s allocation pursuant line 8 to subdivision (a), a supplemental project allocation request shall line 9 be submitted by the department to the commission for approval. line 10 (c)  The commission shall establish guidelines to provide line 11 exceptions to the requirement of subdivision (b) that the line 12 commission determines are necessary to ensure that projects are line 13 not unnecessarily delayed. line 14 SEC. 8. Section 14534.1 of the Government Code is repealed. line 15 14534.1. Notwithstanding Section 12850.6 or subdivision (b) line 16 of Section 12800, as added to this code by the Governor’s line 17 Reorganization Plan No. 2 of 2012 during the 2011–12 Regular line 18 Session, the commission shall retain independent authority to line 19 perform those duties and functions prescribed to it under any line 20 provision of law. line 21 SEC. 9. Section 16321 is added to the Government Code, to line 22 read: line 23 16321. (a)  Notwithstanding any other law, on or before January line 24 1, 2017, the Department of Finance shall compute the amount of line 25 outstanding loans made from the State Highway Account, the line 26 Motor Vehicle Fuel Account, the Highway Users Tax Account, line 27 and the Motor Vehicle Account to the General Fund. The line 28 department shall prepare a loan repayment schedule, pursuant to line 29 which the outstanding loans shall be repaid, as follows: line 30 (1)  On or before June 30, 2017, 50 percent of the outstanding line 31 loan amounts. line 32 (2)  On or before June 30, 2018, the remainder of the outstanding line 33 loan amounts. line 34 (b)  Notwithstanding any other law, as the loans are repaid line 35 pursuant to this section, the repaid funds shall be transferred in the line 36 following manner: line 37 (1)  Fifty percent to cities and counties pursuant to clauses (i) line 38 and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of line 39 Section 2103 of the Streets and Highways Code. 99 AB 1— 15 — 154 line 1 (2)  Fifty percent to the department for maintenance of the state line 2 highway system and for purposes of the state highway operation line 3 and protection program. line 4 (c)  Funds for loan repayments pursuant to this section are hereby line 5 appropriated from the Budget Stabilization Account pursuant to line 6 subclause (II) of clause (ii) of subparagraph (B) of paragraph (1) line 7 of subdivision (c) of Section 20 of Article XVI of the California line 8 Constitution. line 9 SEC. 10. Section 16965 of the Government Code is amended line 10 to read: line 11 16965. (a)  (1)  The Transportation Debt Service Fund is hereby line 12 created in the State Treasury. Moneys in the fund shall be dedicated line 13 to all of the following purposes: line 14 (A)  Payment of debt service with respect to designated bonds, line 15 as defined in subdivision (c) of Section 16773, and as further line 16 provided in paragraph (3) and subdivision (b). line 17 (B)  To reimburse the General Fund for debt service with respect line 18 to bonds. line 19 (C)  To redeem or retire bonds, pursuant to Section 16774, line 20 maturing in a subsequent fiscal year. line 21 (2)  The bonds eligible under subparagraph (B) or (C) of line 22 paragraph (1) include bonds issued pursuant to the Clean Air and line 23 Transportation Improvement Act of 1990 (Part 11.5 (commencing line 24 with Section 99600) of Division 10 of the Public Utilities Code), line 25 the Passenger Rail and Clean Air Bond Act of 1990 (Chapter 17 line 26 (commencing with Section 2701) of Division 3 of the Streets and line 27 Highways Code), the Seismic Retrofit Bond Act of 1996 (Chapter line 28 12.48 (commencing with Section 8879) of Division 1 of Title 2), line 29 and the Safe, Reliable High-Speed Passenger Train Bond Act for line 30 the 21st Century (Chapter 20 (commencing with Section 2704) of line 31 Division 3 of the Streets and Highways Code), and nondesignated line 32 bonds under Proposition 1B, as defined in subdivision (c) of line 33 Section 16773. line 34 (3)  (A)  The Transportation Bond Direct Payment Account is line 35 hereby created in the State Treasury, as a subaccount within the line 36 Transportation Debt Service Fund, for the purpose of directly line 37 paying the debt service, as defined in paragraph (4), of designated line 38 bonds of Proposition 1B, as defined in subdivision (c) of Section line 39 16773. Notwithstanding Section 13340, moneys in the line 40 Transportation Bond Direct Payment Account are continuously 99 — 16 —AB 1 155 line 1 appropriated for payment of debt service with respect to designated line 2 bonds as provided in subdivision (c) of Section 16773. So long as line 3 any designated bonds remain outstanding, the moneys in the line 4 Transportation Bond Direct Payment Account may not be used line 5 for any other purpose, and may not be borrowed by or available line 6 for transfer to the General Fund pursuant to Section 16310 or any line 7 similar law, or to the General Cash Revolving Fund pursuant to line 8 Section 16381 or any similar law. line 9 (B)  Once the Treasurer makes a certification that payment of line 10 debt service with respect to all designated bonds has been paid or line 11 provided for, any remaining moneys in the Transportation Bond line 12 Direct Payment Account shall be transferred back to the line 13 Transportation Debt Service Fund. line 14 (C)  The moneys in the Transportation Bond Direct Payment line 15 Account shall be invested in the Surplus Money Investment Fund, line 16 and all investment earnings shall accrue to the account. line 17 (D)  The Controller may establish subaccounts within the line 18 Transportation Bond Direct Payment Account as may be required line 19 by the resolution, indenture, or other documents governing any line 20 designated bonds. line 21 (4)  For purposes of this subdivision and subdivision (b), and line 22 subdivision (c) of Section 16773, “debt service” means payment line 23 of all of the following costs and expenses with respect to any line 24 designated bond: line 25 (A)  The principal of and interest on the bonds. line 26 (B)  Amounts payable as the result of tender on any bonds, as line 27 described in clause (iv) of subparagraph (B) of paragraph (1) of line 28 subdivision (d) of Section 16731. line 29 (C)  Amounts payable under any contractual obligation of the line 30 state to repay advances and pay interest thereon under a credit line 31 enhancement or liquidity agreement as described in clause (iv) of line 32 subparagraph (B) of paragraph (1) of subdivision (d) of Section line 33 16731. line 34 (D)  Any amount owed by the state to a counterparty after any line 35 offset for payments owed to the state on any hedging contract as line 36 described in subparagraph (A) of paragraph (2) of subdivision (d) line 37 of Section 16731. line 38 (b)  From the moneys transferred to the fund pursuant to line 39 paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the line 40 Vehicle Code, there shall first be deposited into the Transportation 99 AB 1— 17 — 156 line 1 Bond Direct Payment Account in each month sufficient funds to line 2 equal the amount designated in a certificate submitted by the line 3 Treasurer to the Controller and the Director of Finance at the start line 4 of each fiscal year, and as may be modified by the Treasurer line 5 thereafter upon issuance of any new issue of designated bonds or line 6 upon change in circumstances that requires such a modification. line 7 This certificate shall be calculated by the Treasurer to identify, for line 8 each month, the amount necessary to fund all of the debt service line 9 with respect to all designated bonds. This calculation shall be done line 10 in a manner provided in the resolution, indenture, or other line 11 documents governing the designated bonds. In the event that line 12 transfers to the Transportation Bond Direct Payment Account in line 13 any month are less than the amounts required in the Treasurer’s line 14 certificate, the shortfall shall carry over to be part of the required line 15 payment in the succeeding month or months. line 16 (c)  The state hereby covenants with the holders from time to line 17 time of any designated bonds that it will not alter, amend, or restrict line 18 the provisions of subdivision (c) of Section 16773 of the line 19 Government Code, or Sections 9400, 9400.1, 9400.4, and 42205 line 20 of the Vehicle Code, which provide directly or indirectly for the line 21 transfer of weight fees to the Transportation Debt Service Fund line 22 or the Transportation Bond Direct Payment Account, or line 23 subdivisions (a) and (b) of this section, or reduce the rate of line 24 imposition of vehicle weight fees under Sections 9400 and 9400.1 line 25 of the Vehicle Code as they existed on the date of the first issuance line 26 of any designated bonds, if that alteration, amendment, restriction, line 27 or reduction would result in projected weight fees for the next line 28 fiscal year determined by the Director of Finance being less than line 29 two times the maximum annual debt service with respect to all line 30 outstanding designated bonds, as such calculation is determined line 31 pursuant to the resolution, indenture, or other documents governing line 32 the designated bonds. The state may include this covenant in the line 33 resolution, indenture, or other documents governing the designated line 34 bonds. line 35 (d)  Once the required monthly deposit, including makeup of line 36 any shortfalls from any prior month, has been made pursuant to line 37 subdivision (b), from moneys transferred to the fund pursuant to line 38 paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the line 39 Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the line 40 Controller shall transfer as an expenditure reduction to the General 99 — 18 —AB 1 157 line 1 Fund any amount necessary to offset the cost of current year debt line 2 service payments made from the General Fund with respect to any line 3 bonds issued pursuant to Proposition 192 (1996) and three-quarters line 4 of the amount of current year debt service payments made from line 5 the General Fund with respect to any nondesignated bonds, as line 6 defined in subdivision (c) of Section 16773, issued pursuant to line 7 Proposition 1B (2006). In the alternative, these funds may also be line 8 used to redeem or retire the applicable bonds, pursuant to Section line 9 16774, maturing in a subsequent fiscal year as directed by the line 10 Director of Finance. line 11 (e)  From moneys transferred to the fund pursuant to Section line 12 183.1 of the Streets and Highways Code, the Controller shall line 13 transfer as an expenditure reduction to the General Fund any line 14 amount necessary to offset the cost of current year debt service line 15 payments made from the General Fund with respect to any bonds line 16 issued pursuant to Proposition 116 (1990). In the alternative, these line 17 funds may also be used to redeem or retire the applicable bonds, line 18 pursuant to Section 16774, maturing in a subsequent fiscal year line 19 as directed by the Director of Finance. line 20 (f) line 21 (e)  Once the required monthly deposit, including makeup of line 22 any shortfalls from any prior month, has been made pursuant to line 23 subdivision (b), from moneys transferred to the fund pursuant to line 24 paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the line 25 Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the line 26 Controller shall transfer as an expenditure reduction to the General line 27 Fund any amount necessary to offset the eligible cost of current line 28 year debt service payments made from the General Fund with line 29 respect to any bonds issued pursuant to Proposition 108 (1990) line 30 and Proposition 1A (2008), and one-quarter of the amount of line 31 current year debt service payments made from the General Fund line 32 with respect to any nondesignated bonds, as defined in subdivision line 33 (c) of Section 16773, issued pursuant to Proposition 1B (2006). line 34 The Department of Finance shall notify the Controller by July 30 line 35 of every year of the percentage of debt service that is expected to line 36 be paid in that fiscal year with respect to bond-funded projects that line 37 qualify as eligible guideway projects consistent with the line 38 requirements applicable to the expenditure of revenues under line 39 Article XIX of the California Constitution, and the Controller shall line 40 make payments only for those eligible projects. In the alternative, 99 AB 1— 19 — 158 line 1 these funds may also be used to redeem or retire the applicable line 2 bonds, pursuant to Section 16774, maturing in a subsequent fiscal line 3 year as directed by the Director of Finance. line 4 (g) line 5 (f)  On or before the second business day following the date on line 6 which transfers are made to the Transportation Debt Service Fund, line 7 and after the required monthly deposits for that month, including line 8 makeup of any shortfalls from any prior month, have been made line 9 to the Transportation Bond Direct Payment Account, the Controller line 10 shall transfer the funds designated for reimbursement of bond debt line 11 service with respect to nondesignated bonds, as defined in line 12 subdivision (c) of Section 16773, and other bonds identified in line 13 subdivisions (d), (e),(d) and (f)(e) in that month from the fund to line 14 the General Fund pursuant to this section. line 15 SEC. 11. Section 39719 of the Health and Safety Code is line 16 amended to read: line 17 39719. (a)  The Legislature shall appropriate the annual line 18 proceeds of the fund for the purpose of reducing greenhouse gas line 19 emissions in this state in accordance with the requirements of line 20 Section 39712. line 21 (b)  To carry out a portion of the requirements of subdivision line 22 (a), annual proceeds are continuously appropriated for the line 23 following: line 24 (1)  Beginning in the 2015–16 2017–18 fiscal year, and line 25 notwithstanding Section 13340 of the Government Code, 35 50 line 26 percent of annual proceeds are continuously appropriated, without line 27 regard to fiscal years, for transit, affordable housing, and line 28 sustainable communities programs as following: follows: line 29 (A)  Ten Twenty percent of the annual proceeds of the fund is line 30 hereby continuously appropriated to the Transportation Agency line 31 for the Transit and Intercity Rail Capital Program created by Part line 32 2 (commencing with Section 75220) of Division 44 of the Public line 33 Resources Code. line 34 (B)  Five Ten percent of the annual proceeds of the fund is hereby line 35 continuously appropriated to the Low Carbon Transit Operations line 36 Program created by Part 3 (commencing with Section 75230) of line 37 Division 44 of the Public Resources Code. Funds Moneys shall be line 38 allocated by the Controller, according to requirements of the line 39 program, and pursuant to the distribution formula in subdivision 99 — 20 —AB 1 159 line 1 (b) or (c) of Section 99312 of, and Sections 99313 and 99314 of, line 2 the Public Utilities Code. line 3 (C)Twenty percent of the annual proceeds of the fund is hereby line 4 continuously appropriated to the Strategic Growth Council for the line 5 Affordable Housing and Sustainable Communities Program created line 6 by Part 1 (commencing with Section 75200) of Division 44 of the line 7 Public Resources Code. Of the amount appropriated in this line 8 subparagraph, no less than 10 percent of the annual proceeds, line 9 proceeds shall be expended for affordable housing, consistent with line 10 the provisions of that program. line 11 (2)Beginning in the 2015–16 fiscal year, notwithstanding line 12 Section 13340 of the Government Code, 25 percent of the annual line 13 proceeds of the fund is hereby continuously appropriated to the line 14 High-Speed Rail Authority for the following components of the line 15 initial operating segment and Phase I Blended System as described line 16 in the 2012 business plan adopted pursuant to Section 185033 of line 17 the Public Utilities Code: line 18 (A)Acquisition and construction costs of the project. line 19 (B)Environmental review and design costs of the project. line 20 (C)Other capital costs of the project. line 21 (D)Repayment of any loans made to the authority to fund the line 22 project. line 23 (c)In determining the amount of annual proceeds of the fund line 24 for purposes of the calculation in subdivision (b), the funds subject line 25 to Section 39719.1 shall not be included. line 26 SEC. 12. Section 21080.37 of the Public Resources Code is line 27 amended to read: line 28 21080.37. (a)  This division does not apply to a project or an line 29 activity to repair, maintain, or make minor alterations to an existing line 30 roadway if all of the following conditions are met: line 31 (1)The project is carried out by a city or county with a line 32 population of less than 100,000 persons to improve public safety. line 33 (2) line 34 (1)(A)  The project does not cross a waterway. line 35 (B)For purposes of this paragraph, “waterway” means a bay, line 36 estuary, lake, pond, river, slough, or a perennial, intermittent, or line 37 ephemeral stream, lake, or estuarine-marine shoreline. line 38 (3) 99 AB 1— 21 — 160 line 1 (2)  The project involves negligible or no expansion of an line 2 existing use beyond that existing at the time of the lead agency’s line 3 determination. line 4 (4)  The roadway is not a state roadway. line 5 (5) line 6 (3)  (A)  The site of the project does not contain wetlands or line 7 riparian areas and does not have significant value as a wildlife line 8 habitat, and the project does not harm any species protected by the line 9 federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et line 10 seq.), the Native Plant Protection Act (Chapter 10 (commencing line 11 with Section 1900) of Division 2 of the Fish and Game Code), or line 12 the California Endangered Species Act (Chapter 1.5 (commencing line 13 with Section 2050) of Division 3 of the Fish and Game Code), and line 14 the project does not cause the destruction or removal of any species line 15 protected by a local ordinance. line 16 (B)  For the purposes of this paragraph: line 17 (i)  “Riparian areas” mean those areas transitional between line 18 terrestrial and aquatic ecosystems and that are distinguished by line 19 gradients in biophysical conditions, ecological processes, and biota. line 20 A riparian area is an area through which surface and subsurface line 21 hydrology connect waterbodies with their adjacent uplands. A line 22 riparian area includes those portions of terrestrial ecosystems that line 23 significantly influence exchanges of energy and matter with aquatic line 24 ecosystems. A riparian area is adjacent to perennial, intermittent, line 25 and ephemeral streams, lakes, and estuarine-marine shorelines. line 26 (ii)  “Significant value as a wildlife habitat” includes wildlife line 27 habitat of national, statewide, regional, or local importance; habitat line 28 for species protected by the federal Endangered Species Act of line 29 1973 (16 U.S.C. Sec. 1531, 1531 et seq.), the California line 30 Endangered Species Act (Chapter 1.5 (commencing with Section line 31 2050) of Division 3 of the Fish and Game Code), or the Native line 32 Plant Protection Act (Chapter 10 (commencing with Section 1900) line 33 of Division 2 of the Fish and Game Code); habitat identified as line 34 candidate, fully protected, sensitive, or species of special status line 35 by local, state, or federal agencies; or habitat essential to the line 36 movement of resident or migratory wildlife. line 37 (iii)  “Wetlands” has the same meaning as in the United States line 38 Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993). 99 — 22 —AB 1 161 line 1 (iv)  “Wildlife habitat” means the ecological communities upon line 2 which wild animals, birds, plants, fish, amphibians, and line 3 invertebrates depend for their conservation and protection. line 4 (6) line 5 (4)  The project does not impact cultural resources. line 6 (7) line 7 (5)  The roadway does not affect scenic resources, as provided line 8 pursuant to subdivision (c) of Section 21084. line 9 (b)  Prior to determining that a project is exempt pursuant to this line 10 section, the lead agency shall do both of the following: line 11 (1)  Include measures in the project to mitigate potential line 12 vehicular traffic and safety impacts and bicycle and pedestrian line 13 safety impacts. line 14 (2)  Hold a noticed public hearing on the project to hear and line 15 respond to public comments. The hearing on the project may be line 16 conducted with another noticed lead agency public hearing. line 17 Publication of the notice shall be no fewer times than required by line 18 Section 6061 of the Government Code, by the public agency in a line 19 newspaper of general circulation in the area. line 20 (c)  For purposes of this section, “roadway” means a roadway line 21 as defined pursuant to Section 530 of the Vehicle Code and the line 22 previously graded and maintained shoulder that is within a roadway line 23 right-of-way of no more than five feet from the edge of the line 24 roadway. line 25 (d)  Whenever line 26 (d)  (1)  If a state agency determines that a project is not subject line 27 to this division pursuant to this section and it approves or line 28 determines to carry out that project, it shall file a notice with the line 29 Office of Planning and Research in the manner specified in line 30 subdivisions (b) and (c) of Section 21108. line 31 (2)  If a local agency determines that a project is not subject to line 32 this division pursuant to this section, section and it approves or line 33 determines to carry out that project, the local agency it shall file line 34 a notice with the Office of Planning and Research, and with the line 35 county clerk in the county in which the project will be located in line 36 the manner specified in subdivisions (b) and (c) of Section 21152. line 37 (e)  This section shall remain in effect only until January 1, 2020, line 38 and as of that date is repealed, unless a later enacted statute, that line 39 is enacted before January 1, 2020, deletes or extends that date. 99 AB 1— 23 — 162 line 1 SEC. 13. Division 13.6 (commencing with Section 21200) is line 2 added to the Public Resources Code, to read: line 3 line 4 DIVISION 13.6. ADVANCE MITIGATION PROGRAM ACT line 5 line 6 Chapter 1. General line 7 line 8 21200. This division shall be known, and may be cited, as the line 9 Advance Mitigation Program Act. line 10 21201. (a)  The purpose of this division is to improve the line 11 success and effectiveness of actions implemented to mitigate the line 12 natural resource impacts of future transportation projects by line 13 establishing the means to implement those actions well before the line 14 transportation projects are constructed. The advance identification line 15 and implementation of mitigation actions also will streamline the line 16 delivery of transportation projects by anticipating mitigation line 17 requirements for planned transportation projects and avoiding or line 18 reducing delays associated with environmental permitting. By line 19 identifying regional or statewide conservation priorities and by line 20 anticipating the impacts of planned transportation projects on a line 21 regional or statewide basis, mitigation actions can be designed to line 22 protect and restore California’s most valuable natural resources line 23 and also facilitate environmental compliance for planned line 24 transportation projects on a regional scale. line 25 (b)  This division is not intended to create a new environmental line 26 permitting or regulatory program or to modify existing line 27 environmental laws or regulations, nor is it expected that all line 28 mitigation requirements will be addressed for planned line 29 transportation projects. Instead, it is intended to provide a line 30 methodology with which to anticipate and fulfill the requirements line 31 of existing state and federal environmental laws that protect fish, line 32 wildlife, plant species, and other natural resources more efficiently line 33 and effectively. line 34 21202. The Legislature finds and declares all of the following: line 35 (a)  The minimization and mitigation of environmental impacts line 36 is ordinarily handled on a project-by-project basis, usually near line 37 the end of a project’s timeline and often without guidance regarding line 38 regional or statewide conservation priorities. line 39 (b)  The cost of critical transportation projects often escalates line 40 because of permitting delays that occur when appropriate 99 — 24 —AB 1 163 line 1 conservation and mitigation measures cannot easily be identified line 2 and because the cost of these measures often increases between line 3 the time a project is planned and funded and the time mitigation line 4 is implemented. line 5 (c)  Addressing conservation and mitigation needs early in a line 6 project’s timeline, during the project design and development line 7 phase, can reduce costs, allow natural resources conservation to line 8 be integrated with project siting and design, and result in the line 9 establishment of more valuable and productive habitat mitigation. line 10 (d)  When the Department of Transportation is able to anticipate line 11 the mitigation needs for planned transportation projects, it can line 12 meet those needs in a more timely and cost-effective way by using line 13 advance mitigation planning. line 14 (e)  Working with state and federal resource protection agencies, line 15 the department can identify, conserve, and, where appropriate, line 16 restore lands for mitigation of numerous projects early in the line 17 projects’ timelines, thereby allowing public funds to stretch further line 18 by acquiring habitat at a lower cost and avoiding environmental line 19 permitting delays. line 20 (f)  Advance mitigation can provide an effective means of line 21 facilitating delivery of transportation projects while ensuring more line 22 effective natural resource conservation. line 23 (g)  Advance mitigation is needed to direct mitigation funding line 24 for transportation projects to agreed-upon conservation priorities line 25 and to the creation of habitat reserves and recreation areas that line 26 enhance the sustainability of human and natural systems by line 27 protecting or restoring connectivity of natural communities and line 28 the delivery of ecosystem services. line 29 (h)  Advance mitigation can facilitate the implementation of line 30 climate change adaptation strategies both for ecosystems and line 31 California’s economy. line 32 (i)  Advance mitigation can enable the state to protect, restore, line 33 and recover its natural resources as it strengthens and improves line 34 its transportation systems. line 35 21203. The Legislature intends to do all of the following by line 36 enacting this division: line 37 (a)  Facilitate delivery of transportation projects while ensuring line 38 more effective natural resource conservation. 99 AB 1— 25 — 164 line 1 (b)  Develop effective strategies to improve the state’s ability to line 2 meet mounting demands for transportation improvements and to line 3 maximize conservation and other public benefits. line 4 (c)  Achieve conservation objectives of statewide and regional line 5 importance by coordinating local, state, and federally funded line 6 natural resource conservation efforts with mitigation actions line 7 required for impacts from transportation projects. line 8 (d)  Create administrative, governance, and financial incentives line 9 and mechanisms necessary to ensure that measures required to line 10 minimize or mitigate impacts from transportation projects will line 11 serve to achieve regional or statewide natural resource conservation line 12 objectives. line 13 line 14 Chapter 2. Definitions line 15 line 16 21204. For purposes of this division, the following terms have line 17 the following meanings: line 18 (a)  “Advance mitigation” means mitigation implemented before, line 19 and in anticipation of, environmental effects of planned line 20 transportation projects. line 21 (b)  “Commission” means the California Transportation line 22 Commission. line 23 (c)  “Department” means the Department of Transportation. line 24 (d)  “Transportation project” means a transportation capital line 25 improvement project. line 26 (e)  “Planned transportation project” means a transportation line 27 project that a transportation agency has concluded is reasonably line 28 likely to be constructed within 20 years and that has been identified line 29 to the agency for purposes of this division. A planned transportation line 30 project may include, but is not limited to, a transportation project line 31 that has been proposed for approval or that has been approved. line 32 (f)  “Program” means the Advance Mitigation Program line 33 implemented pursuant to this division. line 34 (g)  “Regulatory agency” means a state or federal natural line 35 resource protection agency with regulatory authority over planned line 36 transportation projects. A regulatory agency includes, but is not line 37 limited to, the Natural Resources Agency, the Department of Fish line 38 and Wildlife, California regional water quality control boards, the line 39 United States Fish and Wildlife Service, the National Marine 99 — 26 —AB 1 165 line 1 Fisheries Service, the United States Environmental Protection line 2 Agency, and the United States Army Corps of Engineers. line 3 line 4 Chapter 3. Advance Mitigation Program line 5 line 6 21205. (a)  The Advance Mitigation Program is hereby created line 7 in the department to accelerate project delivery and improve line 8 environmental outcomes of environmental mitigation for planned line 9 transportation projects. line 10 (b)  The program may utilize mitigation instruments, including, line 11 but not limited to, mitigation banks, in lieu of fee programs, and line 12 conservation easements as defined in Section 815.1 of the Civil line 13 Code. line 14 (c)  The department shall track all implemented advance line 15 mitigation projects to use as credits for environmental mitigation line 16 for state-sponsored transportation projects. line 17 (d)  The department may use advance mitigation credits to fulfill line 18 mitigation requirements of any environmental law for a line 19 transportation project eligible for the State Transportation line 20 Improvement Program or the State Highway Operation and line 21 Protection Program. line 22 21206. No later than August 1, 2017, the department shall line 23 establish an interagency transportation advance mitigation steering line 24 committee consisting of the department and appropriate state and line 25 federal regulatory agencies to support the program so that advance line 26 mitigation can be used as required mitigation for planned line 27 transportation projects and can provide improved environmental line 28 outcomes. The committee shall advise the department of line 29 opportunities to carry out advance mitigation projects, provide the line 30 best available science, and actively participate in mitigation line 31 instrument reviews and approvals. The committee shall seek to line 32 develop streamlining opportunities, including those related to line 33 landscape scale mitigation planning and alignment of federal and line 34 state regulations and procedures related to mitigation requirements line 35 and implementation. The committee shall also provide input on line 36 crediting, using, and tracking of advance mitigation investments. line 37 21207. The Advance Mitigation Fund is hereby created in the line 38 State Transportation Fund as a revolving fund. Notwithstanding line 39 Section 13340 of the Government Code, the fund shall be line 40 continuously appropriated without regard to fiscal years. The 99 AB 1— 27 — 166 line 1 moneys in the fund shall be programmed by the commission for line 2 the planning and implementation of advance mitigation projects line 3 consistent with the purposes of this chapter. After the transfer of line 4 moneys to the fund for four fiscal years pursuant to subdivision line 5 (c) of Section 2032 of the Streets and Highways Code, commencing line 6 in the 2017–18 fiscal year, the program is intended to be line 7 self-sustaining. Advance expenditures from the fund shall later be line 8 reimbursed from project funding available at the time a planned line 9 transportation project is constructed. A maximum of 5 percent of line 10 available funds may be used for administrative purposes. line 11 21208. The program is intended to improve the efficiency and line 12 efficacy of mitigation only and is not intended to supplant the line 13 requirements of the California Environmental Quality Act (Division line 14 13 (commencing with Section 21000) or any other environmental line 15 law. The identification of planned transportation projects and of line 16 mitigation projects or measures for planned transportation projects line 17 under this division does not imply or require approval of those line 18 projects for purposes of the California Environmental Quality Act line 19 (Division 13 (commencing with Section 21000) or any other line 20 environmental law. line 21 SEC. 14. Section 99312.1 of the Public Utilities Code is line 22 amended to read: line 23 99312.1. (a)  Revenues transferred to the Public Transportation line 24 Account pursuant to Sections 6051.8 and 6201.8 of the Revenue line 25 and Taxation Code are hereby continuously appropriated to the line 26 Controller for allocation as follows: line 27 (a) line 28 (1)  Fifty percent for allocation to transportation planning line 29 agencies, county transportation commissions, and the San Diego line 30 Metropolitan Transit Development Board pursuant to Section line 31 99314. line 32 (b) line 33 (2)  Fifty percent for allocation to transportation agencies, county line 34 transportation commissions, and the San Diego Metropolitan line 35 Transit Development Board for purposes of Section 99313. line 36 (b)  For purposes of this chapter, the revenues allocated pursuant line 37 to this section shall be subject to the same requirements as revenues line 38 allocated pursuant to subdivisions (b) and (c), as applicable, of line 39 Section 99312. 99 — 28 —AB 1 167 line 1 (c)  The revenues transferred to the Public Transportation line 2 Account that are attributable to the increase in the sales and use line 3 tax on diesel fuel pursuant to subdivision (b) of Section 6051.8 of line 4 the Revenue and Taxation Code, as adjusted pursuant to line 5 subdivision (c) of that section, and subdivision (b) of Section 6201.8 line 6 of the Revenue and Taxation Code, as adjusted pursuant to line 7 subdivision (c) of that section, upon allocation pursuant to Sections line 8 99313 and 99314, shall only be expended on the following: line 9 (1)  Transit capital projects or services to maintain or repair a line 10 transit operator’s existing transit vehicle fleet or existing transit line 11 facilities, including rehabilitation or modernization of existing line 12 vehicles or facilities. line 13 (2)  The design, acquisition, and construction of new vehicles line 14 or facilities that improve existing transit services. line 15 (3)  Transit services that complement local efforts for repair and line 16 improvement of local transportation infrastructure. line 17 (d)  (1)  Prior to receiving an apportionment of funds pursuant line 18 to subdivision (c) from the Controller in a fiscal year, a recipient line 19 transit agency shall submit to the Department of Transportation line 20 a list of projects proposed to be funded with these funds. The list line 21 of projects proposed to be funded with these funds shall include line 22 a description and location of each proposed project, a proposed line 23 schedule for the project’s completion, and the estimated useful life line 24 of the improvement. The project list shall not limit the flexibility line 25 of a recipient transit agency to fund projects in accordance with line 26 local needs and priorities so long as the projects are consistent line 27 with subdivision (c). line 28 (2)  The department shall report to the Controller the recipient line 29 transit agencies that have submitted a list of projects as described line 30 in this subdivision and that are therefore eligible to receive an line 31 apportionment of funds for the applicable fiscal year. The line 32 Controller, upon receipt of the report, shall apportion funds line 33 pursuant to Sections 99313 and 99314. line 34 (e)  For each fiscal year, each recipient transit agency receiving line 35 an apportionment of funds pursuant to subdivision (c) shall, upon line 36 expending those funds, submit documentation to the department line 37 that includes a description and location of each completed project, line 38 the amount of funds expended on the project, the completion date, line 39 and the estimated useful life of the improvement. 99 AB 1— 29 — 168 line 1 (f)  The audit of transit operator finances required pursuant to line 2 Section 99245 shall verify that the revenues identified in line 3 subdivision (c) have been expended in conformance with these line 4 specific requirements and all other generally applicable line 5 requirements. line 6 SEC. 15. Section 99314.9 is added to the Public Utilities Code, line 7 to read: line 8 99314.9. The Controller shall compute quarterly proposed line 9 allocations for State Transit Assistance funds available for line 10 allocation pursuant to Sections 99313 and 99314. The Controller line 11 shall publish the allocations for each eligible recipient agency, line 12 including one list applicable to revenues allocated pursuant to line 13 subdivision (c) of Section 99312.1 and another list for revenues line 14 allocated from all other revenues in the Public Transportation line 15 Account that are designated for the State Transit Assistance line 16 Program. line 17 SEC. 16. Section 6051.8 of the Revenue and Taxation Code line 18 is amended to read: line 19 6051.8. (a)  Except as provided by Section 6357.3, in addition line 20 to the taxes imposed by this part, for the privilege of selling line 21 tangible personal property at retail a tax is hereby imposed upon line 22 all retailers at the rate of 1.75 percent of the gross receipts of any line 23 retailer from the sale of all diesel fuel, as defined in Section 60022, line 24 sold at retail in this state on and after the operative date of this line 25 subdivision. fuel. line 26 (b)  Except as provided by Section 6357.3, in addition to the line 27 taxes imposed by this part and by subdivision (a), for the privilege line 28 of selling tangible personal property at retail a tax is hereby line 29 imposed upon all retailers at the rate of 3.5 percent of the gross line 30 receipts of any retailer from the sale of all diesel fuel, as defined line 31 in Section 60022, sold at retail in this state. The tax imposed under line 32 this subdivision shall be imposed on and after the first day of the line 33 first calendar quarter that occurs 120 days after the effective date line 34 of the act adding this subdivision. line 35 (b)  Notwithstanding subdivision (a), for line 36 (c)  Beginning July 1, 2019, and every third year thereafter, the line 37 2011–12 fiscal year only, State Board of Equalization shall line 38 recompute the rate referenced in subdivision (a) rates of the taxes line 39 imposed by this section. That computation shall be 1.87 percent. line 40 made as follows: 99 — 30 —AB 1 169 line 1 (c)  Notwithstanding subdivision (a), line 2 (1)  The Department of Finance shall transmit to the State Board line 3 of Equalization the percentage change in the California Consumer line 4 Price Index for all items from November of three calendar years line 5 prior to November of the 2012–13 fiscal year only, the rate line 6 referenced in subdivision (a) shall be 2.17 percent. prior calendar line 7 year, no later than January 31, 2019, and January 31 of every line 8 third year thereafter. line 9 (d)  Notwithstanding subdivision (a), for line 10 (2)  The State Board of Equalization shall do all of the following: line 11 (A)  Compute an inflation adjustment factor by adding 100 line 12 percent to the percentage change figure that is furnished pursuant line 13 to paragraph (1) and dividing the result by 100. line 14 (B)  Multiply the preceding tax rate per gallon by the inflation line 15 adjustment factor determined in subparagraph (A) and round off line 16 the resulting product to the nearest tenth of a cent. line 17 (C)  Make its determination of the 2013–14 fiscal year only, new line 18 rate no later than March 1 of the rate referenced in subdivision line 19 (a) shall be 1.94 percent. same year as the effective date of the new line 20 rate. line 21 (e) line 22 (d)  Notwithstanding subdivision (b) of Section 7102, all of the line 23 revenues, less refunds, collected pursuant to this section shall be line 24 estimated by the State Board of Equalization, with the concurrence line 25 of the Department of Finance, and transferred quarterly to the line 26 Public Transportation Account in the State Transportation Fund line 27 for allocation pursuant to Section 99312.1 of the Public Utilities line 28 Code. line 29 (f)  Subdivisions (a) to (e), inclusive, shall become operative on line 30 July 1, 2011. line 31 SEC. 17. Section 6201.8 of the Revenue and Taxation Code line 32 is amended to read: line 33 6201.8. (a)  Except as provided by Section 6357.3, in addition line 34 to the taxes imposed by this part, an excise tax is hereby imposed line 35 on the storage, use, or other consumption in this state of diesel line 36 fuel, as defined in Section 60022, at the rate of 1.75 percent of the line 37 sales price of the diesel fuel on and after the operative date of this line 38 subdivision. fuel. line 39 (b)  Notwithstanding subdivision (a), for 99 AB 1— 31 — 170 line 1 (b)  Except as provided by Section 6357.3, in addition to the line 2 taxes imposed by this part and by subdivision (a), an excise tax is line 3 hereby imposed on the storage, use, or other consumption in this line 4 state of diesel fuel, as defined in Section 60022, at the rate of 3.5 line 5 percent of the sales price of the diesel fuel. The tax imposed under line 6 this subdivision shall be imposed on and after the first day of the line 7 first calendar quarter that occurs 120 days after the effective date line 8 of the act adding this subdivision. line 9 (c)  Beginning July 1, 2019, and every third year thereafter, the line 10 2011–12 fiscal year only, State Board of Equalization shall line 11 recompute the rate referenced in subdivision (a) rates of the taxes line 12 imposed by this section. That computation shall be 1.87 percent. line 13 made as follows: line 14 (c)  Notwithstanding subdivision (a), line 15 (1)  The Department of Finance shall transmit to the State Board line 16 of Equalization the percentage change in the California Consumer line 17 Price Index for all items from November of three calendar years line 18 prior to November of the 2012–13 fiscal year only, the rate line 19 referenced in subdivision (a) shall be 2.17 percent. prior calendar line 20 year, no later than January 31, 2019, and January 31 of every line 21 third year thereafter. line 22 (d)  Notwithstanding subdivision (a), for line 23 (2)  The State Board of Equalization shall do all of the following: line 24 (A)  Compute an inflation adjustment factor by adding 100 line 25 percent to the percentage change figure that is furnished pursuant line 26 to paragraph (1) and dividing the result by 100. line 27 (B)  Multiply the preceding tax rate per gallon by the inflation line 28 adjustment factor determined in subparagraph (A) and round off line 29 the resulting product to the nearest tenth of a cent. line 30 (C)  Make its determination of the 2013–14 fiscal year only, new line 31 rate no later than March 1 of the rate referenced in subdivision line 32 (a) shall be 1.94 percent. same year as the effective date of the new line 33 rate. line 34 (e) line 35 (d)  Notwithstanding subdivision (b) of Section 7102, all of the line 36 revenues, less refunds, collected pursuant to this section shall be line 37 estimated by the State Board of Equalization, with the concurrence line 38 of the Department of Finance, and transferred quarterly to the line 39 Public Transportation Account in the State Transportation Fund 99 — 32 —AB 1 171 line 1 for allocation pursuant to Section 99312.1 of the Public Utilities line 2 Code. line 3 (f)  Subdivisions (a) to (e), inclusive, shall become operative on line 4 July 1, 2011. line 5 SEC. 18. Section 7360 of the Revenue and Taxation Code is line 6 amended to read: line 7 7360. (a)  (1)  (A)  A tax of eighteen cents ($0.18) is hereby line 8 imposed upon each gallon of fuel subject to the tax in Sections line 9 7362, 7363, and 7364. line 10 (B)  In addition to the tax imposed pursuant to subparagraph line 11 (A), on and after the first day of the first calendar quarter that line 12 occurs 90 days after the effective date of the act adding this line 13 subparagraph, a tax of twelve cents ($0.12) is hereby imposed line 14 upon each gallon of fuel, other than aviation gasoline, subject to line 15 the tax in Sections 7362, 7363, and 7364. line 16 (2)  If the federal fuel tax is reduced below the rate of nine cents line 17 ($0.09) per gallon and federal financial allocations to this state for line 18 highway and exclusive public mass transit guideway purposes are line 19 reduced or eliminated correspondingly, the tax rate imposed by line 20 subparagraph (A) of paragraph (1), on and after the date of the line 21 reduction, shall be recalculated by an amount so that the combined line 22 state rate under subparagraph (A) of paragraph (1) and the federal line 23 tax rate per gallon equal twenty-seven cents ($0.27). line 24 (3)  If any person or entity is exempt or partially exempt from line 25 the federal fuel tax at the time of a reduction, the person or entity line 26 shall continue to be so exempt under this section. line 27 (b)  (1)  On and after July 1, 2010, in addition to the tax imposed line 28 by subdivision (a), a tax is hereby imposed upon each gallon of line 29 motor vehicle fuel, other than aviation gasoline, subject to the tax line 30 in Sections 7362, 7363, and 7364 in an amount equal to seventeen line 31 and three-tenths cents ($0.173) per gallon. line 32 (2)  For the 2011–12 fiscal year line 33 (c)  Beginning July 1, 2019, and each fiscal every third year line 34 thereafter, the board shall, on or before March 1 State Board of line 35 the fiscal year immediately preceding the applicable fiscal year, line 36 adjust the rate in paragraph (1) in that manner as to generate an line 37 amount Equalization shall recompute the rates of revenue that line 38 will equal the amount of revenue loss attributable to the exemption line 39 provided taxes imposed by Section 6357.7, based on estimates line 40 made by the board, and that rate this section. That computation 99 AB 1— 33 — 172 line 1 shall be effective during the state’s next fiscal year. made as line 2 follows: line 3 (3)  In order to maintain revenue neutrality for each year, line 4 beginning with line 5 (1)  The Department of Finance shall transmit to the State Board line 6 of Equalization the percentage change in the California Consumer line 7 Price Index for all items from November of three calendar years line 8 prior to November of the prior calendar year, no later than January line 9 31, 2019, and January 31 of every third year thereafter. line 10 (2)  The State Board of Equalization shall do all of the following: line 11 (A)  Compute an inflation adjustment factor by adding 100 line 12 percent to the percentage change figure that is furnished pursuant line 13 to paragraph (1) and dividing the result by 100. line 14 (B)  Multiply the preceding tax rate adjustment on or before line 15 March 1, 2012, the adjustment under paragraph (2) shall also take line 16 into account the extent to which the actual amount of revenues line 17 derived pursuant to this subdivision and, as applicable, Section line 18 7361.1, the revenue loss attributable to the exemption provided line 19 per gallon by Section 6357.7 resulted the inflation adjustment line 20 factor determined in a net revenue gain or loss for subparagraph line 21 (A) and round off the fiscal year ending prior resulting product to line 22 the rate adjustment date on or before March 1. nearest tenth of a line 23 cent. line 24 (4)  The intent line 25 (C)  Make its determination of paragraphs (2) and (3) is to ensure line 26 that the act adding this subdivision and Section 6357.7 does not line 27 produce a net revenue gain in state taxes. new rate no later than line 28 March 1 of the same year as the effective date of the new rate. line 29 SEC. 19. Section 8352.4 of the Revenue and Taxation Code line 30 is amended to read: line 31 8352.4. (a)  Subject to Sections 8352 and 8352.1, and except line 32 as otherwise provided in subdivision (b), there shall be transferred line 33 from the money deposited to the credit of the Motor Vehicle Fuel line 34 Account to the Harbors and Watercraft Revolving Fund, for line 35 expenditure in accordance with Division 1 (commencing with line 36 Section 30) of the Harbors and Navigation Code, the sum of six line 37 million six hundred thousand dollars ($6,600,000) per annum, line 38 representing the amount of money in the Motor Vehicle Fuel line 39 Account attributable to taxes imposed on distributions of motor line 40 vehicle fuel used or usable in propelling vessels. The actual amount 99 — 34 —AB 1 173 line 1 shall be calculated using the annual reports of registered boats line 2 prepared by the Department of Motor Vehicles for the United line 3 States Coast Guard and the formula and method of the December line 4 1972 report prepared for this purpose and submitted to the line 5 Legislature on December 26, 1972, by the Director of line 6 Transportation. If the amount transferred during each fiscal year line 7 is in excess of the calculated amount, the excess shall be line 8 retransferred from the Harbors and Watercraft Revolving Fund to line 9 the Motor Vehicle Fuel Account. If the amount transferred is less line 10 than the amount calculated, the difference shall be transferred from line 11 the Motor Vehicle Fuel Account to the Harbors and Watercraft line 12 Revolving Fund. No adjustment shall be made if the computed line 13 difference is less than fifty thousand dollars ($50,000), and the line 14 amount shall be adjusted to reflect any temporary or permanent line 15 increase or decrease that may be made in the rate under the Motor line 16 Vehicle Fuel Tax Law. Payments pursuant to this section shall be line 17 made prior to payments pursuant to Section 8352.2. line 18 (b)  Commencing July 1, 2012, 2017, the revenues attributable line 19 to the taxes imposed pursuant to subdivision (b) of Section 7360 line 20 and Section 7361.1 and otherwise to be deposited in the Harbors line 21 and Watercraft Revolving Fund pursuant to subdivision (a) shall line 22 instead be transferred to the General Fund. The revenues line 23 attributable to the taxes imposed Highway Users Tax Account for line 24 distribution pursuant to subdivision (b) of Section 7360 and Section line 25 7361.1 that were deposited in 2103.1 of the Harbors Streets and line 26 Watercraft Revolving Fund in the 2010–11 and 2011–12 fiscal line 27 years shall be transferred to the General Fund. Highways Code. line 28 SEC. 20. Section 8352.5 of the Revenue and Taxation Code line 29 is amended to read: line 30 8352.5. (a)  (1)  Subject to Sections 8352 and 8352.1, and line 31 except as otherwise provided in subdivision (b), there shall be line 32 transferred from the money deposited to the credit of the Motor line 33 Vehicle Fuel Account to the Department of Food and Agriculture line 34 Fund, during the second quarter of each fiscal year, an amount line 35 equal to the estimate contained in the most recent report prepared line 36 pursuant to this section. line 37 (2)  The amounts are not subject to Section 6357 with respect line 38 to the collection of sales and use taxes thereon, and represent the line 39 portion of receipts in the Motor Vehicle Fuel Account during a line 40 calendar year that were attributable to agricultural off-highway 99 AB 1— 35 — 174 line 1 use of motor vehicle fuel which is subject to refund pursuant to line 2 Section 8101, less gross refunds allowed by the Controller during line 3 the fiscal year ending June 30th 30 following the calendar year to line 4 persons entitled to refunds for agricultural off-highway use line 5 pursuant to Section 8101. Payments pursuant to this section shall line 6 be made prior to payments pursuant to Section 8352.2. line 7 (b)  Commencing July 1, 2012, 2017, the revenues attributable line 8 to the taxes imposed pursuant to subdivision (b) of Section 7360 line 9 and Section 7361.1 and otherwise to be deposited in the line 10 Department of Food and Agriculture Fund pursuant to subdivision line 11 (a) shall instead be transferred to the General Fund. The revenues line 12 attributable to the taxes imposed Highway Users Tax Account for line 13 distribution pursuant to subdivision (b) of Section 7360 and Section line 14 7361.1 that were deposited in the Department 2103.1 of Food and line 15 Agriculture Fund in the 2010–11 Streets and 2011–12 fiscal years line 16 shall be transferred to the General Fund. Highways Code. line 17 (c)  On or before September 30, 2012, and on or before line 18 September 30 of each even-numbered year thereafter, the Director line 19 of Transportation and the Director of Food and Agriculture shall line 20 jointly prepare, or cause to be prepared, a report setting forth the line 21 current estimate of the amount of money in the Motor Vehicle line 22 Fuel Account attributable to agricultural off-highway use of motor line 23 vehicle fuel, which is subject to refund pursuant to Section 8101 line 24 less gross refunds allowed by the Controller to persons entitled to line 25 refunds for agricultural off-highway use pursuant to Section 8101; line 26 and they shall submit a copy of the report to the Legislature. line 27 SEC. 21. Section 8352.6 of the Revenue and Taxation Code line 28 is amended to read: line 29 8352.6. (a)  (1)  Subject to Section 8352.1, and except as line 30 otherwise provided in paragraphs (2) and (3), on the first day of line 31 every month, there shall be transferred from moneys deposited to line 32 the credit of the Motor Vehicle Fuel Account to the Off-Highway line 33 Vehicle Trust Fund created by Section 38225 of the Vehicle Code line 34 an amount attributable to taxes imposed upon distributions of motor line 35 vehicle fuel used in the operation of motor vehicles off highway line 36 and for which a refund has not been claimed. Transfers made line 37 pursuant to this section shall be made prior to transfers pursuant line 38 to Section 8352.2. line 39 (2)  Commencing July 1, 2012, 2017, the revenues attributable line 40 to the taxes imposed pursuant to subdivision (b) of Section 7360 99 — 36 —AB 1 175 line 1 and Section 7361.1 and otherwise to be deposited in the line 2 Off-Highway Vehicle Trust Fund pursuant to paragraph (1) shall line 3 instead be transferred to the General Fund. The revenues line 4 attributable to the taxes imposed Highway Users Tax Account for line 5 distribution pursuant to subdivision (b) of Section 7360 and Section line 6 7361.1 that were deposited in 2103.1 of the Off-Highway Vehicle line 7 Trust Fund in the 2010–11 Streets and 2011–12 fiscal years shall line 8 be transferred to the General Fund. Highways Code. line 9 (3)  The Controller shall withhold eight hundred thirty-three line 10 thousand dollars ($833,000) from the monthly transfer to the line 11 Off-Highway Vehicle Trust Fund pursuant to paragraph (1), and line 12 transfer that amount to the General Fund. line 13 (b)  The amount transferred to the Off-Highway Vehicle Trust line 14 Fund pursuant to paragraph (1) of subdivision (a), as a percentage line 15 of the Motor Vehicle Fuel Account, shall be equal to the percentage line 16 transferred in the 2006–07 fiscal year. Every five years, starting line 17 in the 2013–14 fiscal year, the percentage transferred may be line 18 adjusted by the Department of Transportation in cooperation with line 19 the Department of Parks and Recreation and the Department of line 20 Motor Vehicles. Adjustments shall be based on, but not limited line 21 to, the changes in the following factors since the 2006–07 fiscal line 22 year or the last adjustment, whichever is more recent: line 23 (1)  The number of vehicles registered as off-highway motor line 24 vehicles as required by Division 16.5 (commencing with Section line 25 38000) of the Vehicle Code. line 26 (2)  The number of registered street-legal vehicles that are line 27 anticipated to be used off highway, including four-wheel drive line 28 vehicles, all-wheel drive vehicles, and dual-sport motorcycles. line 29 (3)  Attendance at the state vehicular recreation areas. line 30 (4)  Off-highway recreation use on federal lands as indicated by line 31 the United States Forest Service’s National Visitor Use Monitoring line 32 and the United States Bureau of Land Management’s Recreation line 33 Management Information System. line 34 (c)  It is the intent of the Legislature that transfers from the Motor line 35 Vehicle Fuel Account to the Off-Highway Vehicle Trust Fund line 36 should reflect the full range of motorized vehicle use off highway line 37 for both motorized recreation and motorized off-road access to line 38 other recreation opportunities. Therefore, the Legislature finds that line 39 the fuel tax baseline established in subdivision (b), attributable to line 40 off-highway estimates of use as of the 2006–07 fiscal year, 99 AB 1— 37 — 176 line 1 accounts for the three categories of vehicles that have been found line 2 over the years to be users of fuel for off-highway motorized line 3 recreation or motorized access to nonmotorized recreational line 4 pursuits. These three categories are registered off-highway line 5 motorized vehicles, registered street-legal motorized vehicles used line 6 off highway, and unregistered off-highway motorized vehicles. line 7 (d)  It is the intent of the Legislature that the off-highway motor line 8 vehicle recreational use to be determined by the Department of line 9 Transportation pursuant to paragraph (2) of subdivision (b) be that line 10 usage by vehicles subject to registration under Division 3 line 11 (commencing with Section 4000) of the Vehicle Code, for line 12 recreation or the pursuit of recreation on surfaces where the use line 13 of vehicles registered under Division 16.5 (commencing with line 14 Section 38000) of the Vehicle Code may occur. line 15 (e)  In the 2014–15 fiscal year, the Department of Transportation, line 16 in consultation with the Department of Parks and Recreation and line 17 the Department of Motor Vehicles, shall undertake a study to line 18 determine the appropriate adjustment to the amount transferred line 19 pursuant to subdivision (b) and to update the estimate of the amount line 20 attributable to taxes imposed upon distributions of motor vehicle line 21 fuel used in the operation of motor vehicles off highway and for line 22 which a refund has not been claimed. The department shall provide line 23 a copy of this study to the Legislature no later than January 1, line 24 2016. line 25 SEC. 22. Section 60050 of the Revenue and Taxation Code is line 26 amended to read: line 27 60050. (a)  (1)  A tax of eighteen thirteen cents ($0.18) ($0.13) line 28 is hereby imposed upon each gallon of diesel fuel subject to the line 29 tax in Sections 60051, 60052, and 60058. line 30 (2)  If the federal fuel tax is reduced below the rate of fifteen line 31 cents ($0.15) per gallon and federal financial allocations to this line 32 state for highway and exclusive public mass transit guideway line 33 purposes are reduced or eliminated correspondingly, the tax rate line 34 imposed by paragraph (1), including any reduction or adjustment line 35 pursuant to subdivision (b), on and after the date of the reduction, line 36 (1) shall be increased by an amount so that the combined state rate line 37 under paragraph (1) and the federal tax rate per gallon equal what line 38 it would have been in the absence of the federal reduction. 99 — 38 —AB 1 177 line 1 (3)  If any person or entity is exempt or partially exempt from line 2 the federal fuel tax at the time of a reduction, the person or entity line 3 shall continue to be exempt under this section. line 4 (b)  (1)  On July 1, 2011, the tax rate specified in paragraph (1) line 5 of subdivision (a) shall be reduced to thirteen cents ($0.13) and line 6 every July 1 thereafter shall be adjusted pursuant to paragraphs line 7 (2) and (3). line 8 (2)  For the 2012–13 fiscal year and each fiscal year thereafter, line 9 the board shall, on or before March 1 of the fiscal year immediately line 10 preceding the applicable fiscal year, adjust the rate reduction in line 11 paragraph (1) in that manner as to result in a revenue loss line 12 attributable to paragraph (1) that will equal the amount of revenue line 13 gain attributable to Sections 6051.8 and 6201.8, based on estimates line 14 made by the board, and that rate shall be effective during the state’s line 15 next fiscal year. line 16 (3)  In order to maintain revenue neutrality for each year, line 17 beginning with the rate adjustment on or before March 1, 2013, line 18 the adjustment under paragraph (2) shall take into account the line 19 extent to which the actual amount of revenues derived pursuant to line 20 Sections 6051.8 and 6201.8 and the revenue loss attributable to line 21 this subdivision resulted in a net revenue gain or loss for the fiscal line 22 year ending prior to the rate adjustment date on or before March line 23 1. line 24 (4)  The intent of paragraphs (2) and (3) is to ensure that the act line 25 adding this subdivision and Sections 6051.8 and 6201.8 does not line 26 produce a net revenue gain in state taxes. line 27 (b)  In addition to the tax imposed pursuant to subdivision (a), line 28 on and after the first day of the first calendar quarter that occurs line 29 120 days after the effective date of the act amending this line 30 subdivision in the 2017–18 Regular Session, an additional tax of line 31 twenty cents ($0.20) is hereby imposed upon each gallon of diesel line 32 fuel subject to the tax in Sections 60051, 60052, and 60058. line 33 (c)  Beginning July 1, 2019, and every third year thereafter, the line 34 State Board of Equalization shall recompute the rates of the taxes line 35 imposed by this section. That computation shall be made as line 36 follows: line 37 (1)  The Department of Finance shall transmit to the State Board line 38 of Equalization the percentage change in the California Consumer line 39 Price Index for all items from November of three calendar years 99 AB 1— 39 — 178 line 1 prior to November of the prior calendar year, no later than January line 2 31, 2019, and January 31 of every third year thereafter. line 3 (2)  The State Board of Equalization shall do all of the following: line 4 (A)  Compute an inflation adjustment factor by adding 100 line 5 percent to the percentage change figure that is furnished pursuant line 6 to paragraph (1) and dividing the result by 100. line 7 (B)  Multiply the preceding tax rate per gallon by the inflation line 8 adjustment factor determined in subparagraph (A) and round off line 9 the resulting product to the nearest tenth of a cent. line 10 (C)  Make its determination of the new rate no later than March line 11 1 of the same year as the effective date of the new rate. line 12 SEC. 23. Section 183.1 of the Streets and Highways Code is line 13 amended to read: line 14 183.1. (a)  Notwithstanding subdivision (a) of Except as line 15 otherwise provided in Section 182 or any other provision 54237.7 line 16 of law, the Government Code, money deposited into the account line 17 that is not subject to Article XIX of the California Constitution, line 18 including, but not limited to, money that is derived from the sale line 19 of documents, charges for miscellaneous services to the public, line 20 condemnation deposits fund investments, rental of state property, line 21 or any other miscellaneous uses of property or money, may shall line 22 be used for any transportation purpose authorized by statute, upon line 23 appropriation by deposited in the Legislature or, after transfer Road line 24 Maintenance and Rehabilitation Account created pursuant to line 25 another fund, upon appropriation by the Legislature from that fund. line 26 Section 2031. line 27 (b)  Commencing with the 2013–14 fiscal year, and not later line 28 than November 1 of each fiscal year thereafter, based on prior year line 29 financial statements, the Controller shall transfer the funds line 30 identified in subdivision (a) for the prior fiscal year from the State line 31 Highway Account to the Transportation Debt Service Fund in the line 32 State Transportation Fund, and those funds are continuously line 33 appropriated for the purposes specified for the Transportation Debt line 34 Service Fund. line 35 SEC. 24. Section 820.1 is added to the Streets and Highways line 36 Code, to read: line 37 820.1. (a)  The State of California consents to the jurisdiction line 38 of the federal courts with regard to the compliance, discharge, or line 39 enforcement of the responsibilities assumed by the department 99 — 40 —AB 1 179 line 1 pursuant to Sections 326 and 327(a) of Title 23 of the United States line 2 Code. line 3 (b)  In any action brought pursuant to the federal laws described line 4 in subdivision (a), no immunity from suit may be asserted by the line 5 department pursuant to the Eleventh Amendment to the United line 6 States Constitution, and any immunity is hereby waived. line 7 (c)  The department shall not delegate any of its responsibilities line 8 assumed pursuant to the federal laws described in subdivision (a) line 9 to any political subdivision of the state or its instrumentalities. line 10 (d)  Nothing in this section affects the obligation of the line 11 department to comply with state and federal law. line 12 SEC. 25. Chapter 2 (commencing with Section 2030) is added line 13 to Division 3 of the Streets and Highways Code, to read: line 14 line 15 Chapter 2. Road Maintenance and Rehabilitation line 16 Program line 17 line 18 2030. (a)  The Road Maintenance and Rehabilitation Program line 19 is hereby created to address deferred maintenance on the state line 20 highway system and the local street and road system. Funds made line 21 available by the program shall be prioritized for expenditure on line 22 basic road maintenance and road rehabilitation projects, and on line 23 critical safety projects. For funds appropriated pursuant to line 24 paragraph (1) of subdivision (d) of Section 2032, the California line 25 Transportation Commission shall adopt performance criteria, line 26 consistent with the asset management plan required pursuant to line 27 14526.4 of the Government Code, to ensure efficient use of the line 28 funds available for these purposes in the program. line 29 (b)  (1)  Funds made available by the program shall be used for line 30 projects that include, but are not limited to, the following: line 31 (A)  Road maintenance and rehabilitation. line 32 (B)  Safety projects. line 33 (C)  Railroad grade separations. line 34 (D)  Complete street components, including active transportation line 35 purposes, pedestrian and bicycle safety projects, transit facilities, line 36 and drainage and stormwater capture projects in conjunction with line 37 any other allowable project. line 38 (E)  Traffic control devices. 99 AB 1— 41 — 180 line 1 (2)  Funds made available by the program may also be used to line 2 satisfy a match requirement in order to obtain state or federal funds line 3 for projects authorized by this subdivision. line 4 2031. The following revenues shall be deposited in the Road line 5 Maintenance and Rehabilitation Account, which is hereby created line 6 in the State Transportation Fund: line 7 (a)  The portion of the revenues in the Highway Users Tax line 8 Account attributable to the increase in the motor vehicle fuel excise line 9 tax pursuant to subparagraph (B) of paragraph (1) of subdivision line 10 (a) of Section 7360 of the Revenue and Taxation Code, as adjusted line 11 pursuant to subdivision (c) of that section. line 12 (b)  The revenues from the increase in the vehicle registration line 13 fee pursuant to Section 9250.3 of the Vehicle Code, as adjusted line 14 pursuant to subdivision (b) of that section. line 15 (c)  The revenues from the increase in the vehicle registration line 16 fee pursuant to Section 9250.6 of the Vehicle Code, as adjusted line 17 pursuant to subdivision (b) of that section. line 18 (d)  The revenues deposited in the account pursuant to Section line 19 183.1 of the Streets and Highways Code. line 20 (e)  Any other revenues designated for the program. line 21 2031.5. Each fiscal year the annual Budget Act shall contain line 22 an appropriation from the Road Maintenance and Rehabilitation line 23 Account to the Controller for the costs of carrying out his or her line 24 duties pursuant to this chapter and to the California Transportation line 25 Commission for the costs of carrying out its duties pursuant to this line 26 chapter and Section 14526.7 of the Government Code. line 27 2032. (a)  (1)  After deducting the amounts appropriated in the line 28 annual Budget Act, as provided in Section 2031.5, two hundred line 29 million dollars ($200,000,000) of the remaining revenues deposited line 30 in the Road Maintenance and Rehabilitation Account shall be set line 31 aside annually for counties that have sought and received voter line 32 approval of taxes or that have imposed fees, including uniform line 33 developer fees as defined by subdivision (b) of Section 8879.67 line 34 of the Government Code, which taxes or fees are dedicated solely line 35 to transportation improvements. The Controller shall each month line 36 set aside one-twelfth of this amount, to accumulate a total of two line 37 hundred million dollars ($200,000,000) in each fiscal year. line 38 (2)  Notwithstanding Section 13340 of the Government Code, line 39 the funds available under this subdivision in each fiscal year are line 40 hereby continuously appropriated for allocation to each eligible 99 — 42 —AB 1 181 line 1 county and each city in the county for road maintenance and line 2 rehabilitation purposes pursuant to Section 2033. line 3 (b)  (1)  After deducting the amounts appropriated in the annual line 4 Budget Act pursuant to Section 2031.5 and the amount allocated line 5 in subdivision (a), beginning in the 2017–18 fiscal year, eighty line 6 million dollars ($80,000,000) of the remaining revenues shall be line 7 transferred annually to the State Highway Account for expenditure, line 8 upon appropriation by the Legislature, on the Active Transportation line 9 Program created pursuant to Chapter 8 (commencing with Section line 10 2380) of Division 3 to be allocated by the California Transportation line 11 Commission pursuant to Section 2381. line 12 (2)  In addition to the funds transferred in paragraph (1), the line 13 department shall annually identify savings achieved through line 14 efficiencies implemented at the department. The department, line 15 through the annual budget process, shall propose, from the line 16 identified savings, an appropriation to be included in the annual line 17 Budget Act of up to seventy million dollars ($70,000,000), but not line 18 to exceed the total annual identified savings, from the State line 19 Highway Account for expenditure on the Active Transportation line 20 Program. line 21 (c)  After deducting the amounts appropriated in the annual line 22 Budget Act pursuant to Section 2031.5, the amount allocated in line 23 subdivision (a) and the amount transferred in paragraph (1) of line 24 subdivision (b), in the 2017–18, 2018–19, 2019–20, and 2020–21 line 25 fiscal years, the sum of thirty million dollars ($30,000,000) in each line 26 fiscal year from the remaining revenues shall be transferred to the line 27 Advance Mitigation Fund in the State Transportation Fund created line 28 pursuant to Section 21207 of the Public Resources Code. line 29 (d)  After deducting the amounts appropriated in the annual line 30 Budget Act pursuant to Section 2031.5, the amount allocated in line 31 subdivision (a), and the amounts transferred in paragraph (1) of line 32 subdivision (b) and in subdivision (c), beginning in the 2017–18 line 33 fiscal year and each fiscal year thereafter, and notwithstanding line 34 Section 13340 of the Government Code, there is hereby line 35 continuously appropriated to the California State University the line 36 sum of two million dollars ($2,000,000) from the remaining line 37 revenues for the purpose of conducting transportation research and line 38 transportation-related workforce education, training, and line 39 development, and to the institutes for transportation studies at the line 40 University of California the sum of three million dollars 99 AB 1— 43 — 182 line 1 ($3,000,000). Prior to the start of each fiscal year, the chairs of the line 2 Assembly Committee on Transportation and the Senate Committee line 3 on Transportation and Housing shall confer and set out a line 4 recommended priority list of research components to be addressed line 5 in the upcoming fiscal year. line 6 (e)  Notwithstanding Section 13340 of the Government Code, line 7 the balance of the revenues deposited in the Road Maintenance line 8 and Rehabilitation Account are hereby continuously appropriated line 9 as follows: line 10 (1)  Fifty percent for allocation to the department for maintenance line 11 of the state highway system or for purposes of the state highway line 12 operation and protection program. line 13 (2)  Fifty percent for apportionment to cities and counties by the line 14 Controller pursuant to the formula in clauses (i) and (ii) of line 15 subparagraph (C) of paragraph (3) of subdivision (a) of Section line 16 2103 for the purposes authorized by this chapter. line 17 2033. (a)  On or before July 1, 2017, the commission, in line 18 cooperation with the department, transportation planning agencies, line 19 county transportation commissions, and other local agencies, shall line 20 develop guidelines for the allocation of funds pursuant to line 21 subdivision (a) of Section 2032. line 22 (b)  The guidelines shall be the complete and full statement of line 23 the policy, standards, and criteria that the commission intends to line 24 use to determine how these funds will be allocated. line 25 (c)  The commission may amend the adopted guidelines after line 26 conducting at least one public hearing. line 27 2034. (a)  (1)  Prior to receiving an apportionment of funds line 28 under the program pursuant to paragraph (2) of subdivision (e) of line 29 Section 2032 from the Controller in a fiscal year, an eligible city line 30 or county shall submit to the commission a list of projects proposed line 31 to be funded with these funds pursuant to an adopted city or county line 32 budget. All projects proposed to receive funding shall be included line 33 in a city or county budget that is adopted by the applicable city line 34 council or county board of supervisors at a regular public meeting. line 35 The list of projects proposed to be funded with these funds shall line 36 include a description and the location of each proposed project, a line 37 proposed schedule for the project’s completion, and the estimated line 38 useful life of the improvement. The project list shall not limit the line 39 flexibility of an eligible city or county to fund projects in 99 — 44 —AB 1 183 line 1 accordance with local needs and priorities so long as the projects line 2 are consistent with subdivision (b) of Section 2030. line 3 (2)  The commission shall report to the Controller the cities and line 4 counties that have submitted a list of projects as described in this line 5 subdivision and that are therefore eligible to receive an line 6 apportionment of funds under the program for the applicable fiscal line 7 year. The Controller, upon receipt of the report, shall apportion line 8 funds to eligible cities and counties. line 9 (b)  For each fiscal year, each city or county receiving an line 10 apportionment of funds shall, upon expending program funds, line 11 submit documentation to the commission that includes a description line 12 and location of each completed project, the amount of funds line 13 expended on the project, the completion date, and the estimated line 14 useful life of the improvement. line 15 2036. (a)  Cities and counties shall maintain their existing line 16 commitment of local funds for street, road, and highway purposes line 17 in order to remain eligible for an allocation or apportionment of line 18 funds pursuant to Section 2032. line 19 (b)  In order to receive an allocation or apportionment pursuant line 20 to Section 2032, the city or county shall annually expend from its line 21 general fund for street, road, and highway purposes an amount not line 22 less than the annual average of its expenditures from its general line 23 fund during the 2009–10, 2010–11, and 2011–12 fiscal years, as line 24 reported to the Controller pursuant to Section 2151. For purposes line 25 of this subdivision, in calculating a city’s or county’s annual line 26 general fund expenditures and its average general fund expenditures line 27 for the 2009–10, 2010–11, and 2011–12 fiscal years, any line 28 unrestricted funds that the city or county may expend at its line 29 discretion, including vehicle in-lieu tax revenues and revenues line 30 from fines and forfeitures, expended for street, road, and highway line 31 purposes shall be considered expenditures from the general fund. line 32 One-time allocations that have been expended for street and line 33 highway purposes, but which may not be available on an ongoing line 34 basis, including revenue provided under the Teeter Plan Bond Law line 35 of 1994 (Chapter 6.6 (commencing with Section 54773) of Part 1 line 36 of Division 2 of Title 5 of the Government Code), may not be line 37 considered when calculating a city’s or county’s annual general line 38 fund expenditures. line 39 (c)  For any city incorporated after July 1, 2009, the Controller line 40 shall calculate an annual average expenditure for the period 99 AB 1— 45 — 184 line 1 between July 1, 2009, and December 31, 2015, inclusive, that the line 2 city was incorporated. line 3 (d)  For purposes of subdivision (b), the Controller may request line 4 fiscal data from cities and counties in addition to data provided line 5 pursuant to Section 2151, for the 2009–10, 2010–11, and 2011–12 line 6 fiscal years. Each city and county shall furnish the data to the line 7 Controller not later than 120 days after receiving the request. The line 8 Controller may withhold payment to cities and counties that do line 9 not comply with the request for information or that provide line 10 incomplete data. line 11 (e)  The Controller may perform audits to ensure compliance line 12 with subdivision (b) when deemed necessary. Any city or county line 13 that has not complied with subdivision (b) shall reimburse the state line 14 for the funds it received during that fiscal year. Any funds withheld line 15 or returned as a result of a failure to comply with subdivision (b) line 16 shall be reapportioned to the other cities and counties whose line 17 expenditures are in compliance. line 18 (f)  If a city or county fails to comply with the requirements of line 19 subdivision (b) in a particular fiscal year, the city or county may line 20 expend during that fiscal year and the following fiscal year a total line 21 amount that is not less than the total amount required to be line 22 expended for those fiscal years for purposes of complying with line 23 subdivision (b). line 24 2037. A city or county may spend its apportionment of funds line 25 under the program on transportation priorities other than those line 26 allowable pursuant to this chapter if the city’s or county’s average line 27 Pavement Condition Index meets or exceeds 80. line 28 2038. (a)  The department and local agencies, as a condition line 29 of receiving funds from the program, shall adopt and implement line 30 a program designed to promote and advance construction line 31 employment and training opportunities through preapprenticeship line 32 opportunities, either by the public agency itself or through line 33 contractors engaged by the public agencies to do work funded in line 34 whole or in part by funds made available by the program. line 35 (b)  The department and local agencies, as a condition of line 36 receiving funds from the program, shall ensure the involvement line 37 of the California Conservation Corps and certified community line 38 conservation corps in the delivery of projects and services funded line 39 in whole or in part by funds made available by the program. 99 — 46 —AB 1 185 line 1 SEC. 26. Section 2103.1 is added to the Streets and Highways line 2 Code, to read: line 3 2103.1. (a)  Notwithstanding Section 2103, the revenues line 4 transferred to the Highway Users Tax Account pursuant to Sections line 5 8352.4, 8352.5, and 8352.6 of the Revenue and Taxation Code line 6 shall be distributed pursuant to the formula in paragraph (3) of line 7 subdivision (a) of Section 2103. line 8 (b)  Notwithstanding subdivision (b) of Section 2103, the portion line 9 of revenues in the Highway Users Tax Account attributable to the line 10 increase in the motor vehicle fuel excise tax pursuant to line 11 subparagraph (B) of paragraph (1) of subdivision (a) of Section line 12 7360 of the Revenue and Taxation Code, as adjusted pursuant to line 13 subdivision (c) of that section, shall be transferred to the Road line 14 Maintenance and Rehabilitation Account pursuant to Section 2031. line 15 (c)  Notwithstanding subdivision (b) of Section 2103, the portion line 16 of revenues in the Highway Users Tax Account attributable to the line 17 increase in the diesel fuel excise tax pursuant to subdivision (b) line 18 of Section 60050 of the Revenue and Taxation Code, as adjusted line 19 pursuant to subdivision (c) of that section, shall be transferred to line 20 the Trade Corridors Improvement Fund pursuant to Section 2192.4. line 21 SEC. 27. Section 2192 of the Streets and Highways Code is line 22 amended to read: line 23 2192. (a)  (1)  The Trade Corridors Improvement Fund, created line 24 pursuant to subdivision (c) of Section 8879.23 of the Government line 25 Code, is hereby continued in existence to receive revenues from line 26 state sources other than the Highway Safety, Traffic Reduction, line 27 Air Quality, and Port Security Bond Act of 2006. This chapter line 28 shall govern expenditure of those other revenues. line 29 (2)  Revenues apportioned to the state under Section 167 of Title line 30 23 of the United States Code from the national highway freight line 31 program, pursuant to the federal Fixing America’s Surface line 32 Transportation Act (“FAST Act,” Public Law 114-94) shall be line 33 allocated for projects approved pursuant to this chapter. line 34 (b)  This chapter shall govern the expenditure of those state and line 35 federal revenues described in subdivision (a). line 36 (b) line 37 (c)  The moneys funding described in the fund from those other line 38 sources subdivision (a) shall be available upon appropriation for line 39 allocation by the California Transportation Commission for line 40 infrastructure improvements in this state on federally designated 99 AB 1— 47 — 186 line 1 Trade Corridors of National and Regional Significance, on the line 2 Primary Freight Network, and along other corridors that have a line 3 high volume of freight movement, as determined by the line 4 commission. In determining the projects eligible for funding, the line 5 commission shall consult the Transportation Agency’s state freight line 6 plan as described in Section 13978.8 of the Government Code, the line 7 State Air Resources Board’s Sustainable Freight Strategy adopted line 8 by Resolution 14-2, Code and the trade infrastructure and goods line 9 movement plan submitted to the commission by the Secretary of line 10 Transportation and the Secretary for Environmental Protection. line 11 California Sustainable Freight Action Plan released in July 2016 line 12 pursuant to Executive Order B-32-15. The commission shall also line 13 consult trade infrastructure and goods movement plans adopted line 14 by regional transportation planning agencies, adopted regional line 15 transportation plans required by state and federal law, and the line 16 statewide applicable port master plan prepared by the California line 17 Marine and Intermodal Transportation System Advisory Council line 18 (Cal-MITSAC) pursuant to Section 1730 of the Harbors and line 19 Navigation Code, when determining eligible projects for funding. line 20 Eligible projects for these funds funding described in subdivision line 21 (a) shall further the state’s economic, environmental, and public line 22 health objectives and goals for freight policy, as articulated in the line 23 plans to be consulted pursuant to this subdivision, and may include, line 24 but are not limited to, all of the following: line 25 (1)  Highway capacity improvements, rail landside access line 26 improvements, landside freight access improvements to airports, line 27 and operational improvements to more efficiently accommodate line 28 the movement of freight, particularly for ingress and egress to and line 29 from the state’s land ports of entry entry, rail terminals, and line 30 seaports, including navigable inland waterways used to transport line 31 freight between seaports, land ports of entry, and airports, and to line 32 relieve traffic congestion along major trade or goods movement line 33 corridors. line 34 (2)  Freight rail system improvements to enhance the ability to line 35 move goods from seaports, land ports of entry, and airports to line 36 warehousing and distribution centers throughout California, line 37 including projects that separate rail lines from highway or local line 38 road traffic, improve freight rail mobility through mountainous line 39 regions, relocate rail switching yards, and other projects that line 40 improve the efficiency and capacity of the rail freight system. 99 — 48 —AB 1 187 line 1 (3)  Projects to enhance the capacity and efficiency of ports. line 2 (4)  Truck corridor and capital and operational improvements, line 3 including dedicated truck facilities or truck toll facilities. line 4 (5)  Border access capital and operational improvements that line 5 enhance goods movement between California and Mexico and that line 6 maximize the state’s ability to access coordinated border line 7 infrastructure funds made available to the state by federal law. line 8 (6)  Surface transportation and connector road improvements to line 9 effectively facilitate the movement of goods, particularly for line 10 ingress and egress to and from the state’s land ports of entry, line 11 airports, and seaports, to relieve traffic congestion along major line 12 trade or goods movement corridors. line 13 (c) line 14 (d)  (1)  The In selecting projects for inclusion in the program line 15 of projects to be funded with funds described in subdivision (a), line 16 the commission shall allocate funds for trade infrastructure line 17 improvements from the fund evaluate the total potential costs and line 18 total potential economic and noneconomic benefits of the program line 19 to California’s economy, environment, and public health. The line 20 commission shall consult with the State Air Resources Board in line 21 order to utilize the appropriate models, techniques, and methods line 22 to develop the parameters for evaluation of projects. The line 23 commission shall allocate the funding described in subdivision (a) line 24 for trade infrastructure improvements consistent with Section line 25 8879.52 of the Government Code and the Trade Corridors line 26 Improvement Fund (TCIF) Guidelines adopted by the commission line 27 on November 27, 2007, or as amended by the commission, and in line 28 a manner that (A) addresses the state’s most urgent needs, (B) line 29 balances the demands of various land ports of entry, seaports, and line 30 airports, (C) provides reasonable geographic balance between the line 31 state’s regions, and (D) places emphasis on projects that improve line 32 trade corridor mobility and safety while reducing emissions of line 33 diesel particulate particulates, greenhouse gases, and other line 34 pollutant emissions. pollutants, and reducing other negative line 35 community impacts, and (E) makes a significant contribution to line 36 the state’s economy. line 37 (2)  In adopting amended guidelines, and developing and line 38 adopting the program of projects, the commission shall do all of line 39 the following: 99 AB 1— 49 — 188 line 1 (A)  Accept nominations for projects to be included in the line 2 program of projects from regional and local transportation line 3 agencies and the Department of Transportation. line 4 (B)  Recognize the key role of the state in project identification line 5 and support integrating statewide goods movement priorities into line 6 the corridor approach. line 7 (C)  Make a finding that adoption and delivery of the program line 8 of projects is in the public interest. line 9 (2) line 10 (3)  In addition, the commission shall also consider the following line 11 factors when allocating these funds: line 12 (A)  “Velocity,” which means the speed by which large cargo line 13 would travel from the land port of entry or seaport through the line 14 distribution system. line 15 (B)  “Throughput,” which means the volume of cargo that would line 16 move from the land port of entry or seaport through the distribution line 17 system. line 18 (C)  “Reliability,” which means a reasonably consistent and line 19 predictable amount of time for cargo to travel from one point to line 20 another on any given day or at any given time in California. line 21 (D)  “Congestion reduction,” which means the reduction in line 22 recurrent daily hours of delay to be achieved. line 23 SEC. 28. Section 2192.1 of the Streets and Highways Code is line 24 amended to read: line 25 2192.1. (a)  To the extent moneys from the Greenhouse Gas line 26 Reduction Fund, attributable to the auction or sale of allowances line 27 as part of a market-based compliance mechanism relative to line 28 reduction of greenhouse gas emissions, are transferred to the Trade line 29 Corridors Improvement Fund, projects funded with those moneys line 30 shall be subject to all of the requirements of existing law applicable line 31 to the expenditure of moneys appropriated from the Greenhouse line 32 Gas Reduction Fund, including, but not limited to, both all of the line 33 following: line 34 (1)  Projects shall further the regulatory purposes of the line 35 California Global Warming Solutions Act of 2006 (Division 25.5 line 36 (commencing with Section 38500) of the Health and Safety Code), line 37 including reducing emissions from greenhouse gases in the state, line 38 directing public and private investment toward disadvantaged line 39 communities, increasing the diversity of energy sources, or creating line 40 opportunities for businesses, public agencies, nonprofits, and other 99 — 50 —AB 1 189 line 1 community institutions to participate in and benefit from statewide line 2 efforts to reduce emissions of greenhouse gases. line 3 (2)  Projects shall be consistent with the guidance developed by line 4 the State Air Resources Board pursuant to Section 39715 of the line 5 Health and Safety Code. line 6 (3)  Projects shall be consistent with the required benefits to line 7 disadvantaged communities pursuant to Section 39713 of the line 8 Health and Safety Code. line 9 (b)  All allocations of funds made by the commission pursuant line 10 to this section shall be made in a manner consistent with the criteria line 11 expressed in Section 39712 of the Health and Safety Code and line 12 with the investment plan developed by the Department of Finance line 13 pursuant to Section 39716 of the Health and Safety Code. line 14 (c)  For purposes of this section, “disadvantaged community” line 15 means a community with any of the following characteristics: line 16 (1)  An area with a median household income less than 80 line 17 percent of the statewide median household income based on the line 18 most current census tract-level data from the American Community line 19 Survey. line 20 (2)  An area identified by the California Environmental line 21 Protection Agency pursuant to Section 39711 of the Health and line 22 Safety Code. line 23 (3)  An area where at least 75 percent of public school students line 24 are eligible to receive free or reduced-price meals under the line 25 National School Lunch Program. line 26 SEC. 29. Section 2192.2 of the Streets and Highways Code is line 27 amended to read: line 28 2192.2. The commission shall allocate funds made available line 29 by this chapter to projects that have identified and committed line 30 supplemental funding from appropriate local, federal, or private line 31 sources. The commission shall determine the appropriate amount line 32 of supplemental funding each project should have to be eligible line 33 for moneys from the fund based on a project-by-project review line 34 and an assessment of the project’s benefit to the state and the line 35 program. Except for border access Funded improvements described line 36 in paragraph (5) of subdivision (b) of Section 2192, improvements line 37 funded with moneys from the fund shall have supplemental funding line 38 that is at least equal to the amount of the contribution from the line 39 fund. under this chapter. The commission may give priority for 99 AB 1— 51 — 190 line 1 funding to projects with higher levels of committed supplemental line 2 funding. line 3 SEC. 30. Section 2192.4 is added to the Streets and Highways line 4 Code, to read: line 5 2192.4. The portion of the revenues in the Highway Users Tax line 6 Account attributable to the increase in the diesel fuel excise tax line 7 pursuant to subdivision (b) of Section 60050 of the Revenue and line 8 Taxation Code, as adjusted pursuant to subdivision (c) of that line 9 section, shall be transferred to the Trade Corridors Improvement line 10 Fund. line 11 SEC. 31. Section 9250.3 is added to the Vehicle Code, to read: line 12 9250.3. (a)  In addition to any other fees specified in this code line 13 or the Revenue and Taxation Code, commencing July 1, 2017, a line 14 registration fee of thirty-eight dollars ($38) shall be paid to the line 15 department for registration or renewal of registration of every line 16 vehicle subject to registration under this code, except those vehicles line 17 that are expressly exempted under this code from payment of line 18 registration fees. line 19 (b)  Beginning July 1, 2019, and every third year thereafter, the line 20 Department of Motor Vehicles shall adjust the fee imposed under line 21 this section for inflation in an amount equal to the change in the line 22 California Consumer Price Index for the prior three-year period, line 23 as calculated by the Department of Finance, with amounts equal line 24 to or greater than fifty cents ($0.50) rounded to the next highest line 25 whole dollar. line 26 (c)  Revenues from the fee, after the deduction of the line 27 department’s administrative costs related to this section, shall be line 28 deposited in the Road Maintenance and Rehabilitation Account line 29 created pursuant to Section 2031 of the Streets and Highways line 30 Code. line 31 SEC. 32. Section 9250.6 is added to the Vehicle Code, to read: line 32 9250.6. (a)  In addition to any other fees specified in this code, line 33 or the Revenue and Taxation Code, commencing July 1, 2017, a line 34 registration fee of one hundred and sixty-five dollars ($165) shall line 35 be paid to the department for registration or renewal of registration line 36 of every zero-emission motor vehicle subject to registration under line 37 this code, except those motor vehicles that are expressly exempted line 38 under this code from payment of registration fees. line 39 (b)  Beginning July 1, 2019, and every third year thereafter, the line 40 Department of Motor Vehicles shall adjust the fee imposed under 99 — 52 —AB 1 191 line 1 this section for inflation in an amount equal to the change in the line 2 California Consumer Price Index for the prior three-year period, line 3 as calculated by the Department of Finance, with amounts equal line 4 to or greater than fifty cents ($0.50) rounded to the next highest line 5 whole dollar. line 6 (c)  Revenues from the fee, after deduction of the department’s line 7 administrative costs related to this section, shall be deposited in line 8 the Road Maintenance and Rehabilitation Account created pursuant line 9 to Section 2031 of the Streets and Highways Code. line 10 (d)  This section does not apply to a commercial motor vehicle line 11 subject to Section 9400.1 or to a low-speed vehicle, as defined in line 12 Section 385.5. line 13 (e)  The registration fee required pursuant to this section does line 14 not apply to the initial registration after the purchase of a new line 15 zero-emission motor vehicle. line 16 (f)  For purposes of this section, “zero-emission motor vehicle” line 17 means a motor vehicle as described in subdivisions (c) and (d) of line 18 Section 44258 of the Health and Safety Code. line 19 SEC. 33. Section 9400.5 is added to the Vehicle Code, to read: line 20 9400.5. (a)  Notwithstanding Sections 9400.1, 9400.4, and line 21 42205 of this code, Sections 16773 and 16965 of the Government line 22 Code, Section 2103 of the Streets and Highways Code, or any line 23 other law, weight fee revenues shall only be transferred consistent line 24 with the schedule provided in subdivision (b) from the State line 25 Highway Account to the Transportation Debt Service Fund, the line 26 Transportation Bond Direct Payment Account, or any other fund line 27 or account for the purpose of payment of the debt service on line 28 transportation general obligation bonds and shall not be loaned to line 29 the General Fund. line 30 (b)  (1)  The transfer of weight fee revenues, after deduction of line 31 collection costs, from the State Highway Account pursuant to line 32 subdivision (a) shall not exceed: line 33 (A)  Nine hundred million dollars ($900,000,000) in the 2017–18 line 34 fiscal year. line 35 (B)  Eight hundred million dollars ($800,000,000) in the 2018–19 line 36 fiscal year. line 37 (C)  Seven hundred million dollars ($700,000,000) in the line 38 2019–20 fiscal year. line 39 (D)  Six hundred million dollars ($600,000,000) in the 2020–21 line 40 fiscal year. 99 AB 1— 53 — 192 line 1 (E)  Five hundred million dollars ($500,000,000) in the 2021-22 line 2 fiscal year and in every fiscal year thereafter. line 3 SEC. 34. This act is an urgency statute necessary for the line 4 immediate preservation of the public peace, health, or safety within line 5 the meaning of Article IV of the Constitution and shall go into line 6 immediate effect. The facts constituting the necessity are: line 7 In order to provide additional funding for road maintenance and line 8 rehabilitation purposes as quickly as possible, it is necessary for line 9 this act to take effect immediately. O 99 — 54 —AB 1 193 SENATE BILL No. 1 Introduced by Senator Beall (Coauthors: Senators Dodd, Hertzberg, Hill, McGuire, Mendoza, Monning, Wieckowski, and Wiener) December 5, 2016 An act to amend Sections 13975, 14500, 14526.5, and 16965 of, to add Sections 14033, 14110, 14526.7, and 16321 to, to add Part 5.1 (commencing with Section 14460) to Division 3 of Title 2 of, and to repeal Section 14534.1 of, the Government Code, to amend Section 39719 of the Health and Safety Code, to amend Section 21080.37 of, and to add Division 13.6 (commencing with Section 21200) to, the Public Resources Code, to amend Section 99312.1 of the Public Utilities Code, to amend Sections 6051.8, 6201.8, 7360, 8352.4, 8352.5, 8352.6, and 60050 of the Revenue and Taxation Code, to amend Sections 183.1, 2192, and 2192.2 of, to add Sections 820.1, 2103.1 and 2192.4 to, and to add Chapter 2 (commencing with Section 2030) to Division 3 of, the Streets and Highways Code, and to add Sections 9250.3, 9250.6, and 9400.5 to the Vehicle Code, relating to transportation, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. legislative counsel’s digest SB 1, as introduced, 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 Corrected 12-6-16—See last page.99 194 Vehicles and the Department of the California Highway Patrol. Existing law provides for the monthly transfer of excess balances in the Motor Vehicle Account to the State Highway Account. This bill would create the Road Maintenance and Rehabilitation Program to address deferred maintenance on the state highway system and the local street and road system. The bill would require the California Transportation Commission to adopt 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 bill would create in the State Transportation Fund, including revenues attributable to a $0.12 per gallon increase, phased in over 3 years, in the motor vehicle fuel (gasoline) tax imposed by the bill with an inflation adjustment, as provided, an increase of $38 in the annual vehicle registration fee with an inflation adjustment, as provided, a new $100 annual vehicle registration fee with an inflation adjustment, as provided, applicable to zero-emission motor vehicles, as defined, and certain miscellaneous revenues described in (7) below that are not restricted as to expenditure by Article XIX of the California Constitution. This bill would annually 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 $80,000,000 of the funds available for the program to be annually transferred to the State Highway Account for expenditure on the Active Transportation Program. The bill would require $30,000,000 of the funds available for the program in each of 4 fiscal years beginning in 2017–18 to be transferred to the Advance Mitigation Fund created by the bill pursuant to (12) below. The bill would continuously appropriate $2,000,000 annually of the funds available for the program to the California State University for the purpose of conducting transportation research and transportation-related workforce education, training, and development. 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 99 — 2 —SB 1 195 50% to cities and counties pursuant to a specified formula. The bill would impose various requirements on the department and agencies receiving these funds. The bill would authorize a city or county to spend its apportionment of funds under the program on transportation priorities other than those allowable pursuant to the program if the city’s or county’s average Pavement Condition Index meets or exceeds 80. The bill would also require the department to annually identify savings achieved through efficiencies implemented at the department and to propose, from the identified savings, an appropriation to be included in the annual Budget Act of up to $70,000,000 from the State Highway Account for expenditure on the Active Transportation Program. (2)  Existing law establishes in state government the Transportation Agency, which includes various departments and state entities, including the California Transportation Commission. Existing law vests the California Transportation Commission with specified powers, duties, and functions relative to transportation matters. Existing law requires the commission to retain independent authority to perform the duties and functions prescribed to it under any provision of law. This bill would exclude the California Transportation Commission from the Transportation Agency, establish it as an entity in state government, and require it to act in an independent oversight role. The bill would also make conforming changes. (3)  Existing law creates various state agencies, including the Department of Transportation, the High-Speed Rail Authority, the Department of the California Highway Patrol, the Department of Motor Vehicles, and the State Air Resources Board, with specified powers and duties. Existing law provides for the allocation of state transportation funds to various transportation purposes. This bill would create the Office of the Transportation Inspector General in state government, as an independent office that would not be a subdivision of any other government entity, to ensure that all of the above-referenced state agencies and all other state agencies expending state transportation funds are operating efficiently, effectively, and in compliance with federal and state laws. The bill would provide for the Governor to appoint the Transportation Inspector General for a 6-year term, subject to confirmation by the Senate, and would provide that the Transportation 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 Transportation 99 SB 1— 3 — 196 Inspector General and would require an annual report to the Legislature and Governor. This bill would require the department to update the Highway Design Manual to incorporate the “complete streets” design concept by January 1, 2018. The bill would require the department to develop a plan by January 1, 2020, to increase by 100% the dollar value of contracts awarded to small businesses, disadvantaged business enterprises, and disabled veteran business enterprises. (4)  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 require the Department of Finance, on or before March 1, 2017, to compute the amount of outstanding loans made from specified transportation funds. The bill would require the Department of Transportation to prepare a loan repayment schedule and would require the outstanding loans to be repaid pursuant to that schedule, as prescribed. The bill would appropriate funds for that purpose from the Budget Stabilization Account. The bill would require the repaid funds to be transferred, pursuant to a specified formula, to cities and counties and to the department for maintenance of the state highway system and for purposes of the state highway operation and protection program. (5)  The Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Proposition 1B) created the Trade Corridors Improvement Fund and provided for allocation by the California Transportation Commission of $2 billion in bond funds for infrastructure improvements on highway and rail corridors that have a high volume of freight movement and for specified categories of projects eligible to receive these funds. Existing law continues the Trade Corridors Improvement Fund in existence in order to receive revenues from sources other than the bond act for these purposes. This bill would deposit the revenues attributable to a $0.20 per gallon increase in the diesel fuel excise tax imposed by the bill into the Trade Corridors Improvement Fund. The bill would require revenues apportioned to the state from the national highway freight program established by the federal Fixing America’s Surface Transportation Act to be allocated for trade corridor improvement projects approved pursuant to these provisions. Existing law requires the commission, in determining projects eligible for funding, to consult various state freight and regional infrastructure and goods movement plans and the statewide port master plan. 99 — 4 —SB 1 197 This bill would revise the list of plans to be consulted by the commission in prioritizing projects for funding. The bill would also expand eligible projects to include, among others, rail landside access improvements, landside freight access improvements to airports, and certain capital and operational improvements. The bill would identify specific amounts to be allocated from available federal funds to certain categories of projects. (6)  Existing law requires all moneys, except for fines and penalties, collected by the State Air Resources Board from the auction or sale of allowances as part of a market-based compliance mechanism relative to reduction of greenhouse gas emissions to be deposited in the Greenhouse Gas Reduction Fund. Existing law continuously appropriates 10% of the annual proceeds of the fund to the Transit and Intercity Rail Capital Program and 5% of the annual proceeds of the fund to the Low Carbon Transit Operations Program. This bill would, beginning in the 2017-18 fiscal year, instead continuously appropriate 20% of those annual proceeds to the Transit and Intercity Rail Capital Program and 10% of those annual proceeds to the Low Carbon Transit Operations Program, thereby making an appropriation. (7)  Article XIX of the California Constitution restricts the expenditure of revenues from taxes imposed by the state on fuels used in motor vehicles upon public streets and highways to street and highway and certain mass transit purposes. Existing law requires certain miscellaneous revenues deposited in the State Highway Account that are not restricted as to expenditure by Article XIX of the California Constitution to be transferred to the Transportation Debt Service Fund in the State Transportation Fund, as specified, and requires the Controller to transfer from the fund to the General Fund an amount of those revenues necessary to offset the current year debt service made from the General Fund on general obligation transportation bonds issued pursuant to Proposition 116 of 1990. This bill would delete the transfer of these miscellaneous revenues to the Transportation Debt Service Fund, thereby eliminating the offsetting transfer to the General Fund for debt service on general obligation transportation bonds issued pursuant to Proposition 116 of 1990. The bill, subject to a specified exception, would instead require the miscellaneous revenues to be retained in the State Highway Account and to be deposited in the Road Maintenance and Rehabilitation Account. 99 SB 1— 5 — 198 (8)  Article XIX of the California 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, agricultural vehicles, and off-highway vehicles, to particular accounts and funds for expenditure 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, commencing July 1, 2017, would instead transfer to the Highway Users Tax Account for allocation to state and local transportation purposes under a specified formula the portion of gasoline excise tax revenues currently being deposited in the General Fund that are attributable to boats, agricultural vehicles, and off-highway vehicles. Because that account is continuously appropriated, the bill would make an appropriation. The bill, commencing July 1, 2017, would transfer, to the Road Maintenance and Rehabilitation Account, the portion of gasoline excise tax revenues attributable to these uses that would be derived from increases in the gasoline excise tax rate described in (1) above. (9)  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 annually modify both the gasoline and diesel excise tax rates on a going-forward basis so that the various changes in the taxes imposed on gasoline and diesel are revenue neutral. This bill would eliminate the annual rate adjustment to maintain revenue neutrality for the gasoline and diesel excise tax rates and would reimpose 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. 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 99 — 6 —SB 1 199 appropriation of other revenues in the account to the Department of Transportation 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 restrict expenditures of revenues attributable to the 3.5% rate increase to transit capital purposes and certain transit services and would require a recipient transit agency to comply with certain requirements, including submitting a list of proposed projects to the Department of Transportation, as a condition of receiving a portion of these funds under the State Transit Assistance Program. The bill would require an existing required audit of transit operator finances to verify that these new revenues have been expended in conformance with these specific restrictions and all other generally applicable requirements. By increasing the amount of revenues in the Public Transportation Account that are continuously appropriated, the bill would thereby make an appropriation. The bill would require the revenues attributable to the remaining 0.5% rate increase to be allocated, upon appropriation, to the department for intercity rail and commuter rail purposes. This bill would, beginning July 1, 2020, and every 3rd year thereafter, require the State Board of Equalization to recompute the gasoline and diesel excise tax rates and the additional sales and use tax rate on diesel fuel based upon the percentage change in the California Consumer Price Index transmitted to the board by the Department of Finance, as prescribed. (10)  Existing law requires the Department of Transportation to prepare a state highway operation and protection program every other year for the expenditure of transportation capital improvement funds for projects that are necessary to preserve and protect the state highway system, excluding projects that add new traffic lanes. The program is required to be based on an asset management plan, as specified. Existing law requires the 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 commission, as part of its review of the program, to hold at least one hearing in northern California and one 99 SB 1— 7 — 200 hearing in southern California regarding the proposed program. The bill would require the department to submit any change to a programmed project as an amendment to the commission for its approval. This bill, on and after August 1, 2017, would also require the commission to make an allocation of all capital and support costs for each project in the program, and would require the department to submit a supplemental project allocation request to the commission for each project that experiences cost increases above the amounts in its allocation. The bill would require the commission to establish guidelines to provide exceptions to the requirement for a supplemental project allocation requirement that the commission determines are necessary to ensure that projects are not unnecessarily delayed. (11)  Existing law imposes weight fees on the registration of commercial motor vehicles and provides for the deposit of net weight fee revenues into the State Highway Account. Existing law provides for the transfer of certain weight fee revenues from the State Highway Account to the Transportation Debt Service Fund to reimburse the General Fund for payment of debt service on general obligation bonds issued for transportation purposes. Existing law also provides for the transfer of certain weight fee revenues to the Transportation Bond Direct Payment Account for direct payment of debt service on designated bonds, which are defined to be certain transportation general obligation bonds issued pursuant to Proposition 1B of 2006. Existing law also provides for loans of weight fee revenues to the General Fund to the extent the revenues are not needed for bond debt service purposes, with the loans to be repaid when the revenues are later needed for those purposes, as specified. This bill, notwithstanding these provisions or any other law, would only authorize specified percentages of weight fee revenues to be transferred from the State Highway Account to the Transportation Debt Service Fund, the Transportation Bond Direct Payment Account, or any other fund or account for the purpose of payment of the debt service on transportation general obligation bonds in accordance with a prescribed schedule, with no more than 50% of weight fee revenues to be used for debt service purposes beginning with the 2021–22 fiscal year. The bill would require the California Transportation Commission, by January 1, 2018, to recommend a course of action to the Legislature and Governor that would retain the remaining 50% share of weight fee revenues in the State Highway Account or provide for the transfer of those revenues to the Road Maintenance and Rehabilitation Account. 99 — 8 —SB 1 201 The bill would also prohibit loans of weight fee revenues to the General Fund. (12)  The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact 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 project that may 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. CEQA, until January 1, 2020, exempts a project or an activity to repair, maintain, or make minor alterations to an existing roadway, as defined, other than a state roadway, if the project or activity is carried out by a city or county with a population of less than 100,000 persons to improve public safety and meets other specified requirements. This bill would extend the above-referenced exemption indefinitely and delete the limitation of the exemption to projects or activities in cities and counties with a population of less than 100,000 persons. The bill would also expand the exemption to include state roadways. This bill would also establish the Advance Mitigation Program in the Department of Transportation. The bill would authorize the department to undertake specified mitigation measures in advance of construction of planned transportation improvements. The bill would require the department to establish a steering committee to advise the department on advance mitigation measures and related matters. The bill would create the Advance Mitigation Fund as a continuously appropriated revolving fund, to be funded initially from the Road Maintenance and Rehabilitation Program pursuant to (1) above. The bill would provide for reimbursement of the revolving fund at the time a planned transportation improvement benefiting from advance mitigation is constructed. (13)  Existing federal law requires the United States Secretary of Transportation to carry out a surface transportation project delivery program, under which the participating states assume certain responsibilities for environmental review and clearance of transportation projects that would otherwise be the responsibility of the federal government. Existing law, until January 1, 2017, when these provisions 99 SB 1— 9 — 202 are repealed, provides that the State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of the responsibilities the Department of Transportation assumed as a participant in this program. This bill would reenact these provisions. (14)  This bill would provide that the fuel tax increases imposed by the bill would be effective on July 1, 2017. The bill would provide that the vehicle fee increases imposed by the bill would be effective on October 1, 2017. (15)  This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no. The people of the State of California do enact as follows: line 1 SECTION 1. The Legislature finds and declares all of the line 2 following: line 3 (a)  Over the next 10 years, the state faces a $59 billion shortfall line 4 to adequately maintain the existing state highway system in order line 5 to keep it in a basic state of good repair. line 6 (b)  Similarly, cities and counties face a $78 billion shortfall line 7 over the next decade to adequately maintain the existing network line 8 of local streets and roads. line 9 (c)  Statewide taxes and fees dedicated to the maintenance of line 10 the system have not been increased in more than 20 years, with line 11 those revenues losing more than 55 percent of their purchasing line 12 power, while costs to maintain the system have steadily increased line 13 and much of the underlying infrastructure has aged past its expected line 14 useful life. line 15 (d)  California motorists are spending $17 billion annually in line 16 extra maintenance and car repair bills, which is more than $700 line 17 per driver, due to the state’s poorly maintained roads. line 18 (e)  Failing to act now to address this growing problem means line 19 that more drastic measures will be required to maintain our system line 20 in the future, essentially passing the burden on to future generations line 21 instead of doing our job today. line 22 (f)  A funding program will help address a portion of the line 23 maintenance backlog on the state’s road system and will stop the line 24 growth of the problem. 99 — 10 —SB 1 203 line 1 (g)  Modestly increasing various fees can spread the cost of road line 2 repairs broadly to all users and beneficiaries of the road network line 3 without overburdening any one group. line 4 (h)  Improving the condition of the state’s road system will have line 5 a positive impact on the economy as it lowers the transportation line 6 costs of doing business, reduces congestion impacts for employees, line 7 and protects property values in the state. line 8 (i)  The federal government estimates that increased spending line 9 on infrastructure creates more than 13,000 jobs per $1 billion spent. line 10 (j)  Well-maintained roads benefit all users, not just drivers, as line 11 roads are used for all modes of transport, whether motor vehicles, line 12 transit, bicycles, or pedestrians. line 13 (k)  Well-maintained roads additionally provide significant health line 14 benefits and prevent injuries and death due to crashes caused by line 15 poorly maintained infrastructure. line 16 (l)  A comprehensive, reasonable transportation funding package line 17 will do all of the following: line 18 (1)  Ensure these transportation needs are addressed. line 19 (2)  Fairly distribute the economic impact of increased funding. line 20 (3)  Restore the gas tax rate previously reduced by the State line 21 Board of Equalization pursuant to the gas tax swap. line 22 (4)  Direct increased revenue to the state’s highest transportation line 23 needs. line 24 SEC. 2. Section 13975 of the Government Code is amended line 25 to read: line 26 13975. There is in the state government the Transportation line 27 Agency. The agency consists of the Department of the California line 28 Highway Patrol, the California Transportation Commission, the line 29 Department of Motor Vehicles, the Department of Transportation, line 30 the High-Speed Rail Authority, and the Board of Pilot line 31 Commissioners for the Bays of San Francisco, San Pablo, and line 32 Suisun. line 33 SEC. 3. Section 14033 is added to the Government Code, to line 34 read: line 35 14033. On or before January 1, 2018, the department shall line 36 update the Highway Design Manual to incorporate the “complete line 37 streets” design concept. line 38 SEC. 4. Section 14110 is added to the Government Code, to line 39 read: 99 SB 1— 11 — 204 line 1 14110. The department shall develop a plan by January 1, 2020, line 2 to increase by 100 percent the dollar value of contracts awarded line 3 to small businesses, disadvantaged business enterprises, and line 4 disabled veteran business enterprises. line 5 SEC. 5. Part 5.1 (commencing with Section 14460) is added line 6 to Division 3 of Title 2 of the Government Code, to read: line 7 line 8 PART 5.1. OFFICE OF THE TRANSPORTATION INSPECTOR line 9 GENERAL line 10 line 11 14460. (a)  There is hereby created in state government the line 12 independent Office of the Transportation Inspector General, which line 13 shall not be a subdivision of any other governmental entity, to line 14 ensure that the Department of Transportation, the High-Speed Rail line 15 Authority, the Department of the California Highway Patrol, the line 16 Department of Motor Vehicles, the State Air Resources Board, line 17 and all other state agencies expending state transportation funds line 18 are operating efficiently, effectively, and in compliance with line 19 applicable federal and state laws. line 20 (b)  The Governor shall appoint, subject to confirmation by the line 21 Senate, the Transportation Inspector General to a six-year term. line 22 The Transportation Inspector General may not be removed from line 23 office during that term, except for good cause. A finding of good line 24 cause may include substantial neglect of duty, gross misconduct, line 25 or conviction of a crime. The reasons for removal of the line 26 Transportation Inspector General shall be stated in writing and line 27 shall include the basis for removal. The writing shall be sent to line 28 the Secretary of the Senate and the Chief Clerk of the Assembly line 29 at the time of the removal and shall be deemed to be a public line 30 document. line 31 14461. The Transportation Inspector General shall review line 32 policies, practices, and procedures and conduct audits and line 33 investigations of activities involving state transportation funds in line 34 consultation with all affected state agencies. Specifically, the line 35 Transportation Inspector General’s duties and responsibilities shall line 36 include, but not be limited to, all of the following: line 37 (a)  To examine the operating practices of all state agencies line 38 expending state transportation funds to identify fraud and waste, line 39 opportunities for efficiencies, and opportunities to improve the line 40 data used to determine appropriate project resource allocations. 99 — 12 —SB 1 205 line 1 (b)  To identify best practices in the delivery of transportation line 2 projects and develop policies or recommend proposed legislation line 3 enabling state agencies to adopt these practices when practicable. line 4 (c)  To provide objective analysis of and, when possible, offer line 5 solutions to concerns raised by the public or generated within line 6 agencies involving the state’s transportation infrastructure and line 7 project delivery methods. line 8 (d)  To conduct, supervise, and coordinate audits and line 9 investigations relating to the programs and operations of all state line 10 transportation agencies with state-funded transportation projects. line 11 (e)  To recommend policies promoting economy and efficiency line 12 in the administration of programs and operations of all state line 13 agencies with state-funded transportation projects. line 14 (f)  To ensure that the Secretary of Transportation and the line 15 Legislature are fully and currently informed concerning fraud or line 16 other serious abuses or deficiencies relating to the expenditure of line 17 funds or administration of programs and operations. line 18 14462. The Transportation Inspector General shall report at line 19 least annually to the Governor and Legislature with a summary of line 20 his or her findings, investigations, and audits. The summary shall line 21 be posted on the Transportation Inspector General’s Internet Web line 22 site and shall otherwise be made available to the public upon its line 23 release to the Governor and Legislature. The summary shall line 24 include, but need not be limited to, significant problems discovered line 25 by the Transportation Inspector General and whether line 26 recommendations of the Transportation Inspector General relative line 27 to investigations and audits have been implemented by the affected line 28 agencies. The report shall be submitted to the Legislature in line 29 compliance with Section 9795. line 30 SEC. 6. Section 14500 of the Government Code is amended line 31 to read: line 32 14500. There is in the Transportation Agency state government line 33 a California Transportation Commission. The commission shall line 34 act in an independent oversight role. line 35 SEC. 7. Section 14526.5 of the Government Code is amended line 36 to read: line 37 14526.5. (a)  Based on the asset management plan prepared line 38 and approved pursuant to Section 14526.4, the department shall line 39 prepare a state highway operation and protection program for the line 40 expenditure of transportation funds for major capital improvements 99 SB 1— 13 — 206 line 1 that are necessary to preserve and protect the state highway system. line 2 Projects included in the program shall be limited to capital line 3 improvements relative to the maintenance, safety, operation, and line 4 rehabilitation of state highways and bridges that do not add a new line 5 traffic lane to the system. line 6 (b)  The program shall include projects that are expected to be line 7 advertised prior to July 1 of the year following submission of the line 8 program, but which have not yet been funded. The program shall line 9 include those projects for which construction is to begin within line 10 four fiscal years, starting July 1 of the year following the year the line 11 program is submitted. line 12 (c)  (1)   The department, at a minimum, shall specify, for each line 13 project in the state highway operation and protection program, the line 14 capital and support budget, as well as a projected delivery date, line 15 budget for each of the following project components: line 16 (1)  Completion of project line 17 (A)  Project approval and environmental documents. line 18 (2)  Preparation of plans, line 19 (B)  Plans, specifications, and estimates. line 20 (3)  Acquisition of rights-of-way, including, but not limited to, line 21 support activities. line 22 (C)  Rights-of-way. line 23 (D)  Construction. line 24 (2)  The department shall specify, for each project in the state line 25 highway operation and protection program, a projected delivery line 26 date for each of the following components: line 27 (A)  Environmental document completion. line 28 (B)  Plans, specifications, and estimate completion. line 29 (C)  Right-of-way certification. line 30 (4) line 31 (D)  Start of construction. line 32 (d)  The program shall be submitted department shall submit its line 33 proposed program to the commission not later than January 31 of line 34 each even-numbered year. Prior to submitting the plan, the its line 35 proposed program, the department shall make a draft of its line 36 proposed program available to transportation planning agencies line 37 for review and comment and shall include the comments in its line 38 submittal to the commission. The department shall provide the line 39 commission with detailed information for all programmed projects, 99 — 14 —SB 1 207 line 1 including, but not limited to, cost, scope, schedule, and line 2 performance metrics as determined by the commission. line 3 (e)  The commission may shall review the proposed program line 4 relative to its overall adequacy, consistency with the asset line 5 management plan prepared and approved pursuant to Section line 6 14526.4 and funding priorities established in Section 167 of the line 7 Streets and Highways Code, the level of annual funding needed line 8 to implement the program, and the impact of those expenditures line 9 on the state transportation improvement program. The commission line 10 shall adopt the program and submit it to the Legislature and the line 11 Governor not later than April 1 of each even-numbered year. The line 12 commission may decline to adopt the program if the commission line 13 determines that the program is not sufficiently consistent with the line 14 asset management plan prepared and approved pursuant to Section line 15 14526.4. line 16 (f)  As part of the commission’s review of the program required line 17 pursuant to subdivision (a), the commission shall hold at least one line 18 hearing in northern California and one hearing in southern line 19 California regarding the proposed program. line 20 (f) line 21 (g)  Expenditures for these projects shall not be subject to line 22 Sections 188 and 188.8 of the Streets and Highways Code. line 23 (h)  Following adoption of the state highway operation and line 24 protection program by the commission, any change to a line 25 programmed project shall be submitted as an amendment by the line 26 department to the commission for its approval before the change line 27 may be implemented. line 28 SEC. 8. Section 14526.7 is added to the Government Code, to line 29 read: line 30 14526.7. (a)  On and after August 1, 2017, an allocation by the line 31 commission of all capital and support costs for each project in the line 32 state highway operation and protection program shall be required. line 33 (b)  For a project that experiences increases in capital or support line 34 costs above the amounts in the commission’s allocation pursuant line 35 to subdivision (a), a supplemental project allocation request shall line 36 be submitted by the department to the commission for approval. line 37 (c)  The commission shall establish guidelines to provide line 38 exceptions to the requirement of subdivision (b) that the line 39 commission determines are necessary to ensure that projects are line 40 not unnecessarily delayed. 99 SB 1— 15 — 208 line 1 SEC. 9. Section 14534.1 of the Government Code is repealed. line 2 14534.1. Notwithstanding Section 12850.6 or subdivision (b) line 3 of Section 12800, as added to this code by the Governor’s line 4 Reorganization Plan No. 2 of 2012 during the 2011–12 Regular line 5 Session, the commission shall retain independent authority to line 6 perform those duties and functions prescribed to it under any line 7 provision of law. line 8 SEC. 10. Section 16321 is added to the Government Code, to line 9 read: line 10 16321. (a)  Notwithstanding any other law, on or before March line 11 1, 2017, the Department of Finance shall compute the amount of line 12 outstanding loans made from the State Highway Account, the line 13 Motor Vehicle Fuel Account, the Highway Users Tax Account, line 14 and the Motor Vehicle Account to the General Fund. The line 15 department shall prepare a loan repayment schedule, pursuant to line 16 which the outstanding loans shall be repaid, as follows: line 17 (1)  On or before December 31, 2017, 50 percent of the line 18 outstanding loan amounts. line 19 (2)  On or before December 31, 2018, the remainder of the line 20 outstanding loan amounts. line 21 (b)  Notwithstanding any other law, as the loans are repaid line 22 pursuant to this section, the repaid funds shall be transferred in the line 23 following manner: line 24 (1)  Fifty percent to cities and counties pursuant to clauses (i) line 25 and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of line 26 Section 2103 of the Streets and Highways Code. line 27 (2)  Fifty percent to the department for maintenance of the state line 28 highway system and for purposes of the state highway operation line 29 and protection program. line 30 (c)  Funds for loan repayments pursuant to this section are hereby line 31 appropriated from the Budget Stabilization Account pursuant to line 32 subclause (II) of clause (ii) of subparagraph (B) of paragraph (1) line 33 of subdivision (c) of Section 20 of Article XVI of the California line 34 Constitution. line 35 SEC. 11. Section 16965 of the Government Code is amended line 36 to read: line 37 16965. (a)  (1)  The Transportation Debt Service Fund is hereby line 38 created in the State Treasury. Moneys in the fund shall be dedicated line 39 to all of the following purposes: 99 — 16 —SB 1 209 line 1 (A)  Payment of debt service with respect to designated bonds, line 2 as defined in subdivision (c) of Section 16773, and as further line 3 provided in paragraph (3) and subdivision (b). line 4 (B)  To reimburse the General Fund for debt service with respect line 5 to bonds. line 6 (C)  To redeem or retire bonds, pursuant to Section 16774, line 7 maturing in a subsequent fiscal year. line 8 (2)  The bonds eligible under subparagraph (B) or (C) of line 9 paragraph (1) include bonds issued pursuant to the Clean Air and line 10 Transportation Improvement Act of 1990 (Part 11.5 (commencing line 11 with Section 99600) of Division 10 of the Public Utilities Code), line 12 the Passenger Rail and Clean Air Bond Act of 1990 (Chapter 17 line 13 (commencing with Section 2701) of Division 3 of the Streets and line 14 Highways Code), the Seismic Retrofit Bond Act of 1996 (Chapter line 15 12.48 (commencing with Section 8879) of Division 1 of Title 2), line 16 and the Safe, Reliable High-Speed Passenger Train Bond Act for line 17 the 21st Century (Chapter 20 (commencing with Section 2704) of line 18 Division 3 of the Streets and Highways Code), and nondesignated line 19 bonds under Proposition 1B, as defined in subdivision (c) of line 20 Section 16773. line 21 (3)  (A)  The Transportation Bond Direct Payment Account is line 22 hereby created in the State Treasury, as a subaccount within the line 23 Transportation Debt Service Fund, for the purpose of directly line 24 paying the debt service, as defined in paragraph (4), of designated line 25 bonds of Proposition 1B, as defined in subdivision (c) of Section line 26 16773. Notwithstanding Section 13340, moneys in the line 27 Transportation Bond Direct Payment Account are continuously line 28 appropriated for payment of debt service with respect to designated line 29 bonds as provided in subdivision (c) of Section 16773. So long as line 30 any designated bonds remain outstanding, the moneys in the line 31 Transportation Bond Direct Payment Account may not be used line 32 for any other purpose, and may not be borrowed by or available line 33 for transfer to the General Fund pursuant to Section 16310 or any line 34 similar law, or to the General Cash Revolving Fund pursuant to line 35 Section 16381 or any similar law. line 36 (B)  Once the Treasurer makes a certification that payment of line 37 debt service with respect to all designated bonds has been paid or line 38 provided for, any remaining moneys in the Transportation Bond line 39 Direct Payment Account shall be transferred back to the line 40 Transportation Debt Service Fund. 99 SB 1— 17 — 210 line 1 (C)  The moneys in the Transportation Bond Direct Payment line 2 Account shall be invested in the Surplus Money Investment Fund, line 3 and all investment earnings shall accrue to the account. line 4 (D)  The Controller may establish subaccounts within the line 5 Transportation Bond Direct Payment Account as may be required line 6 by the resolution, indenture, or other documents governing any line 7 designated bonds. line 8 (4)  For purposes of this subdivision and subdivision (b), and line 9 subdivision (c) of Section 16773, “debt service” means payment line 10 of all of the following costs and expenses with respect to any line 11 designated bond: line 12 (A)  The principal of and interest on the bonds. line 13 (B)  Amounts payable as the result of tender on any bonds, as line 14 described in clause (iv) of subparagraph (B) of paragraph (1) of line 15 subdivision (d) of Section 16731. line 16 (C)  Amounts payable under any contractual obligation of the line 17 state to repay advances and pay interest thereon under a credit line 18 enhancement or liquidity agreement as described in clause (iv) of line 19 subparagraph (B) of paragraph (1) of subdivision (d) of Section line 20 16731. line 21 (D)  Any amount owed by the state to a counterparty after any line 22 offset for payments owed to the state on any hedging contract as line 23 described in subparagraph (A) of paragraph (2) of subdivision (d) line 24 of Section 16731. line 25 (b)  From the moneys transferred to the fund pursuant to line 26 paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the line 27 Vehicle Code, there shall first be deposited into the Transportation line 28 Bond Direct Payment Account in each month sufficient funds to line 29 equal the amount designated in a certificate submitted by the line 30 Treasurer to the Controller and the Director of Finance at the start line 31 of each fiscal year, and as may be modified by the Treasurer line 32 thereafter upon issuance of any new issue of designated bonds or line 33 upon change in circumstances that requires such a modification. line 34 This certificate shall be calculated by the Treasurer to identify, for line 35 each month, the amount necessary to fund all of the debt service line 36 with respect to all designated bonds. This calculation shall be done line 37 in a manner provided in the resolution, indenture, or other line 38 documents governing the designated bonds. In the event that line 39 transfers to the Transportation Bond Direct Payment Account in line 40 any month are less than the amounts required in the Treasurer’s 99 — 18 —SB 1 211 line 1 certificate, the shortfall shall carry over to be part of the required line 2 payment in the succeeding month or months. line 3 (c)  The state hereby covenants with the holders from time to line 4 time of any designated bonds that it will not alter, amend, or restrict line 5 the provisions of subdivision (c) of Section 16773 of the line 6 Government Code, or Sections 9400, 9400.1, 9400.4, and 42205 line 7 of the Vehicle Code, which provide directly or indirectly for the line 8 transfer of weight fees to the Transportation Debt Service Fund line 9 or the Transportation Bond Direct Payment Account, or line 10 subdivisions (a) and (b) of this section, or reduce the rate of line 11 imposition of vehicle weight fees under Sections 9400 and 9400.1 line 12 of the Vehicle Code as they existed on the date of the first issuance line 13 of any designated bonds, if that alteration, amendment, restriction, line 14 or reduction would result in projected weight fees for the next line 15 fiscal year determined by the Director of Finance being less than line 16 two times the maximum annual debt service with respect to all line 17 outstanding designated bonds, as such calculation is determined line 18 pursuant to the resolution, indenture, or other documents governing line 19 the designated bonds. The state may include this covenant in the line 20 resolution, indenture, or other documents governing the designated line 21 bonds. line 22 (d)  Once the required monthly deposit, including makeup of line 23 any shortfalls from any prior month, has been made pursuant to line 24 subdivision (b), from moneys transferred to the fund pursuant to line 25 paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the line 26 Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the line 27 Controller shall transfer as an expenditure reduction to the General line 28 Fund any amount necessary to offset the cost of current year debt line 29 service payments made from the General Fund with respect to any line 30 bonds issued pursuant to Proposition 192 (1996) and three-quarters line 31 of the amount of current year debt service payments made from line 32 the General Fund with respect to any nondesignated bonds, as line 33 defined in subdivision (c) of Section 16773, issued pursuant to line 34 Proposition 1B (2006). In the alternative, these funds may also be line 35 used to redeem or retire the applicable bonds, pursuant to Section line 36 16774, maturing in a subsequent fiscal year as directed by the line 37 Director of Finance. line 38 (e)  From moneys transferred to the fund pursuant to Section line 39 183.1 of the Streets and Highways Code, the Controller shall line 40 transfer as an expenditure reduction to the General Fund any 99 SB 1— 19 — 212 line 1 amount necessary to offset the cost of current year debt service line 2 payments made from the General Fund with respect to any bonds line 3 issued pursuant to Proposition 116 (1990). In the alternative, these line 4 funds may also be used to redeem or retire the applicable bonds, line 5 pursuant to Section 16774, maturing in a subsequent fiscal year line 6 as directed by the Director of Finance. line 7 (f) line 8 (e)  Once the required monthly deposit, including makeup of line 9 any shortfalls from any prior month, has been made pursuant to line 10 subdivision (b), from moneys transferred to the fund pursuant to line 11 paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the line 12 Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the line 13 Controller shall transfer as an expenditure reduction to the General line 14 Fund any amount necessary to offset the eligible cost of current line 15 year debt service payments made from the General Fund with line 16 respect to any bonds issued pursuant to Proposition 108 (1990) line 17 and Proposition 1A (2008), and one-quarter of the amount of line 18 current year debt service payments made from the General Fund line 19 with respect to any nondesignated bonds, as defined in subdivision line 20 (c) of Section 16773, issued pursuant to Proposition 1B (2006). line 21 The Department of Finance shall notify the Controller by July 30 line 22 of every year of the percentage of debt service that is expected to line 23 be paid in that fiscal year with respect to bond-funded projects that line 24 qualify as eligible guideway projects consistent with the line 25 requirements applicable to the expenditure of revenues under line 26 Article XIX of the California Constitution, and the Controller shall line 27 make payments only for those eligible projects. In the alternative, line 28 these funds may also be used to redeem or retire the applicable line 29 bonds, pursuant to Section 16774, maturing in a subsequent fiscal line 30 year as directed by the Director of Finance. line 31 (g) line 32 (f)  On or before the second business day following the date on line 33 which transfers are made to the Transportation Debt Service Fund, line 34 and after the required monthly deposits for that month, including line 35 makeup of any shortfalls from any prior month, have been made line 36 to the Transportation Bond Direct Payment Account, the Controller line 37 shall transfer the funds designated for reimbursement of bond debt line 38 service with respect to nondesignated bonds, as defined in line 39 subdivision (c) of Section 16773, and other bonds identified in 99 — 20 —SB 1 213 line 1 subdivisions (d), (e), and (f) (d) and (e) in that month from the line 2 fund to the General Fund pursuant to this section. line 3 SEC. 12. Section 39719 of the Health and Safety Code is line 4 amended to read: line 5 39719. (a)  The Legislature shall appropriate the annual line 6 proceeds of the fund for the purpose of reducing greenhouse gas line 7 emissions in this state in accordance with the requirements of line 8 Section 39712. line 9 (b)  To carry out a portion of the requirements of subdivision line 10 (a), annual proceeds are continuously appropriated for the line 11 following: line 12 (1)  Beginning in the 2015–16 2017–18 fiscal year, and line 13 notwithstanding Section 13340 of the Government Code, 35 50 line 14 percent of annual proceeds are continuously appropriated, without line 15 regard to fiscal years, for transit, affordable housing, and line 16 sustainable communities programs as following: follows: line 17 (A)  Ten Twenty percent of the annual proceeds of the fund is line 18 hereby continuously appropriated to the Transportation Agency line 19 for the Transit and Intercity Rail Capital Program created by Part line 20 2 (commencing with Section 75220) of Division 44 of the Public line 21 Resources Code. line 22 (B)  Five Ten percent of the annual proceeds of the fund is hereby line 23 continuously appropriated to the Low Carbon Transit Operations line 24 Program created by Part 3 (commencing with Section 75230) of line 25 Division 44 of the Public Resources Code. Funds Moneys shall be line 26 allocated by the Controller, according to requirements of the line 27 program, and pursuant to the distribution formula in subdivision line 28 (b) or (c) of Section 99312 of, and Sections 99313 and 99314 of, line 29 the Public Utilities Code. line 30 (C)  Twenty percent of the annual proceeds of the fund is hereby line 31 continuously appropriated to the Strategic Growth Council for the line 32 Affordable Housing and Sustainable Communities Program created line 33 by Part 1 (commencing with Section 75200) of Division 44 of the line 34 Public Resources Code. Of the amount appropriated in this line 35 subparagraph, no less than 10 percent of the annual proceeds, line 36 proceeds shall be expended for affordable housing, consistent with line 37 the provisions of that program. line 38 (2)  Beginning in the 2015–16 fiscal year, notwithstanding line 39 Section 13340 of the Government Code, 25 percent of the annual line 40 proceeds of the fund is hereby continuously appropriated to the 99 SB 1— 21 — 214 line 1 High-Speed Rail Authority for the following components of the line 2 initial operating segment and Phase I Blended System as described line 3 in the 2012 business plan adopted pursuant to Section 185033 of line 4 the Public Utilities Code: line 5 (A)  Acquisition and construction costs of the project. line 6 (B)  Environmental review and design costs of the project. line 7 (C)  Other capital costs of the project. line 8 (D)  Repayment of any loans made to the authority to fund the line 9 project. line 10 (c)  In determining the amount of annual proceeds of the fund line 11 for purposes of the calculation in subdivision (b), the funds subject line 12 to Section 39719.1 shall not be included. line 13 SEC. 13. Section 21080.37 of the Public Resources Code is line 14 amended to read: line 15 21080.37. (a)  This division does not apply to a project or an line 16 activity to repair, maintain, or make minor alterations to an existing line 17 roadway if all of the following conditions are met: line 18 (1)  The project is carried out by a city or county with a line 19 population of less than 100,000 persons to improve public safety. line 20 (2) line 21 (1)  (A)  The project does not cross a waterway. line 22 (B)  For purposes of this paragraph, “waterway” means a bay, line 23 estuary, lake, pond, river, slough, or a perennial, intermittent, or line 24 ephemeral stream, lake, or estuarine-marine shoreline. line 25 (3) line 26 (2)  The project involves negligible or no expansion of an line 27 existing use beyond that existing at the time of the lead agency’s line 28 determination. line 29 (4)  The roadway is not a state roadway. line 30 (5) line 31 (3)  (A)  The site of the project does not contain wetlands or line 32 riparian areas and does not have significant value as a wildlife line 33 habitat, and the project does not harm any species protected by the line 34 federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et line 35 seq.), the Native Plant Protection Act (Chapter 10 (commencing line 36 with Section 1900) of Division 2 of the Fish and Game Code), or line 37 the California Endangered Species Act (Chapter 1.5 (commencing line 38 with Section 2050) of Division 3 of the Fish and Game Code), and line 39 the project does not cause the destruction or removal of any species line 40 protected by a local ordinance. 99 — 22 —SB 1 215 line 1 (B)  For the purposes of this paragraph: line 2 (i)  “Riparian areas” mean those areas transitional between line 3 terrestrial and aquatic ecosystems and that are distinguished by line 4 gradients in biophysical conditions, ecological processes, and biota. line 5 A riparian area is an area through which surface and subsurface line 6 hydrology connect waterbodies with their adjacent uplands. A line 7 riparian area includes those portions of terrestrial ecosystems that line 8 significantly influence exchanges of energy and matter with aquatic line 9 ecosystems. A riparian area is adjacent to perennial, intermittent, line 10 and ephemeral streams, lakes, and estuarine-marine shorelines. line 11 (ii)  “Significant value as a wildlife habitat” includes wildlife line 12 habitat of national, statewide, regional, or local importance; habitat line 13 for species protected by the federal Endangered Species Act of line 14 1973 (16 U.S.C. Sec. 1531, 1531 et seq.), the California line 15 Endangered Species Act (Chapter 1.5 (commencing with Section line 16 2050) of Division 3 of the Fish and Game Code), or the Native line 17 Plant Protection Act (Chapter 10 (commencing with Section 1900) line 18 of Division 2 of the Fish and Game Code); habitat identified as line 19 candidate, fully protected, sensitive, or species of special status line 20 by local, state, or federal agencies; or habitat essential to the line 21 movement of resident or migratory wildlife. line 22 (iii)  “Wetlands” has the same meaning as in the United States line 23 Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993). line 24 (iv)  “Wildlife habitat” means the ecological communities upon line 25 which wild animals, birds, plants, fish, amphibians, and line 26 invertebrates depend for their conservation and protection. line 27 (6) line 28 (4)  The project does not impact cultural resources. line 29 (7) line 30 (5)  The roadway does not affect scenic resources, as provided line 31 pursuant to subdivision (c) of Section 21084. line 32 (b)  Prior to determining that a project is exempt pursuant to this line 33 section, the lead agency shall do both of the following: line 34 (1)  Include measures in the project to mitigate potential line 35 vehicular traffic and safety impacts and bicycle and pedestrian line 36 safety impacts. line 37 (2)  Hold a noticed public hearing on the project to hear and line 38 respond to public comments. The hearing on the project may be line 39 conducted with another noticed lead agency public hearing. line 40 Publication of the notice shall be no fewer times than required by 99 SB 1— 23 — 216 line 1 Section 6061 of the Government Code, by the public agency in a line 2 newspaper of general circulation in the area. line 3 (c)  For purposes of this section, “roadway” means a roadway line 4 as defined pursuant to Section 530 of the Vehicle Code and the line 5 previously graded and maintained shoulder that is within a roadway line 6 right-of-way of no more than five feet from the edge of the line 7 roadway. line 8 (d)  (1)  If a state agency determines that a project is not subject line 9 to this division pursuant to this section and it approves or line 10 determines to carry out that project, it shall file a notice with the line 11 Office of Planning and Research in the manner specified in line 12 subdivisions (b) and (c) of Section 21108. line 13 (d)  Whenever line 14 (2)  If a local agency determines that a project is not subject to line 15 this division pursuant to this section, section and it approves or line 16 determines to carry out that project, the local agency it shall file line 17 a notice with the Office of Planning and Research, and with the line 18 county clerk in the county in which the project will be located in line 19 the manner specified in subdivisions (b) and (c) of Section 21152. line 20 (e)  This section shall remain in effect only until January 1, 2020, line 21 and as of that date is repealed, unless a later enacted statute, that line 22 is enacted before January 1, 2020, deletes or extends that date. line 23 SEC. 14. Division 13.6 (commencing with Section 21200) is line 24 added to the Public Resources Code, to read: line 25 line 26 DIVISION 13.6. ADVANCE MITIGATION PROGRAM ACT line 27 line 28 Chapter 1. General line 29 line 30 21200. This division shall be known, and may be cited, as the line 31 Advance Mitigation Program Act. line 32 21201. (a)  The purpose of this division is to improve the line 33 success and effectiveness of actions implemented to mitigate the line 34 natural resource impacts of future transportation improvements line 35 by designing those actions to measurably advance regional or line 36 statewide conservation priorities and by establishing the means to line 37 implement the actions well before the impacts occur. The advance line 38 design and implementation of mitigation actions also will line 39 streamline the delivery of transportation improvements by avoiding line 40 or reducing delays associated with environmental permitting. 99 — 24 —SB 1 217 line 1 (b)  This division is not intended to create a new environmental line 2 permitting or regulatory program or to modify existing line 3 environmental laws or regulations, nor is it expected that all line 4 mitigation requirements will be addressed for planned line 5 transportation improvements. Instead, it is intended to provide a line 6 methodology with which to fulfill the requirements of existing line 7 state and federal environmental laws that protect fish, wildlife, line 8 plant species, and other natural resources more efficiently and line 9 effectively. line 10 21202. The Legislature finds and declares all of the following: line 11 (a)   Compensatory mitigation for environmental impacts is line 12 ordinarily handled on a project-by-project basis, usually near the line 13 end of a project’s timeline and often with insufficient guidance line 14 regarding regional or statewide conservation priorities. line 15 (b)  The cost of critical transportation improvements often line 16 escalates because of permitting delays that occur when appropriate line 17 conservation and mitigation measures cannot easily be identified line 18 and because the cost of these measures often increases between line 19 the time a project is planned and funded and the time mitigation line 20 is implemented. line 21 (c)  When the Department of Transportation is able to anticipate line 22 the compensatory mitigation needs for planned transportation line 23 improvements, it can meet those needs in a more timely and line 24 cost-effective way by using advance mitigation planning. line 25 (d)  Working with state and federal resource protection agencies, line 26 the department can generate and pool a range of mitigation credits line 27 for use for transportation improvements, taking advantage of line 28 greater economies of scale and allowing public funds to stretch line 29 further. By making those mitigation credits available in advance line 30 of environmental impacts and project permitting, transportation line 31 agencies can avoid permitting delays that result from line 32 project-by-project identification and development of mitigation line 33 measures. line 34 (e)  Advance mitigation can provide an effective means of line 35 facilitating delivery of transportation improvements while ensuring line 36 more effective natural resource conservation. line 37 (f)  Advance mitigation is needed to direct mitigation funding line 38 for transportation improvements to agreed-upon conservation line 39 priorities and to the creation of habitat reserves and recreation line 40 areas that enhance the sustainability of human and natural systems 99 SB 1— 25 — 218 line 1 by protecting or restoring connectivity of natural communities and line 2 the delivery of ecosystem services. line 3 (g)  Advance mitigation can facilitate the implementation of line 4 climate change adaptation strategies both for ecosystems and line 5 California’s economy. line 6 (h)  Advance mitigation can enable the state to protect, restore, line 7 and recover its natural resources as it strengthens and improves line 8 its transportation systems. line 9 21203. The Legislature intends to do all of the following by line 10 enacting this division: line 11 (a)  Facilitate delivery of transportation improvements while line 12 ensuring more effective natural resource conservation. line 13 (b)  Develop effective strategies to improve the state’s ability to line 14 meet mounting demands for transportation improvements and to line 15 maximize conservation and other public benefits. line 16 (c)  Achieve conservation objectives of statewide and regional line 17 importance by coordinating local, state, and federally funded line 18 natural resource conservation efforts with mitigation actions line 19 required for impacts from transportation improvements. line 20 (d)  Create administrative, governance, and financial incentives line 21 and mechanisms necessary to ensure that measures required to line 22 minimize or mitigate impacts from transportation improvements line 23 will serve to achieve regional or statewide natural resource line 24 conservation objectives. line 25 line 26 Chapter 2. Definitions line 27 line 28 21204. For purposes of this division, the following terms have line 29 the following meanings: line 30 (a)  “Acquire” and “acquisition” mean, with respect to land or line 31 a waterway, acquisition of fee title or purchase of a conservation line 32 easement, that protects conservation and mitigation values on the line 33 land or waterway in perpetuity. line 34 (b)  “Advance mitigation” means mitigation implemented before, line 35 and in anticipation of, environmental effects of planned line 36 transportation improvements. line 37 (c)  “Commission” means the California Transportation line 38 Commission. 99 — 26 —SB 1 219 line 1 (d)  “Conservation easement” means a perpetual conservation line 2 easement that complies with Chapter 4 (commencing with Section line 3 815) of Title 2 of Part 2 of Division 2 of the Civil Code. line 4 (e)  “Department” means the Department of Transportation. line 5 (f)  “Mitigation credit agreement” means a mitigation credit line 6 agreement pursuant to Chapter 9 (commencing with Section 1850) line 7 of Division 2 of the Fish and Game Code. line 8 (g)  “Transportation agency” means the department, the line 9 High-Speed Rail Authority, a metropolitan planning organization, line 10 a regional transportation planning agency, or another public agency line 11 that implements transportation improvements. line 12 (h)  “Transportation improvement” means a transportation capital line 13 improvement project. line 14 (i)  “Planned transportation improvement” means a transportation line 15 project that a transportation agency has identified in a regional line 16 transportation plan, an interregional transportation plan, a capital line 17 improvement program, or other approved transportation planning line 18 document. A planned transportation improvement may include, line 19 but is not limited to, a transportation project that has been proposed line 20 for approval or that has been approved. line 21 (j)  “Program” means the Advance Mitigation Program line 22 implemented pursuant to this division. line 23 (k)  “Regional conservation investment strategy” means a line 24 regional conservation investment strategy pursuant to Chapter 9 line 25 (commencing with Section 1850) of Division 2 of the Fish and line 26 Game Code. line 27 (l)  “Regulatory agency” means a state or federal natural resource line 28 protection agency with regulatory authority over planned line 29 transportation improvements. A regulatory agency includes, but line 30 is not limited to, the Natural Resources Agency, the Department line 31 of Fish and Wildlife, California regional water quality control line 32 boards, the United States Fish and Wildlife Service, the National line 33 Marine Fisheries Service, the United States Environmental line 34 Protection Agency, and the United States Army Corps of line 35 Engineers. line 36 line 37 Chapter 3. Advance Mitigation Program line 38 line 39 21205. (a)  The Advance Mitigation Program is hereby created line 40 in the department to accelerate project delivery and improve 99 SB 1— 27 — 220 line 1 environmental outcomes of environmental mitigation for planned line 2 transportation improvements. The department may do any of the line 3 following to administer and implement the program: line 4 (1)  Purchase credits at mitigation banks and conservation banks line 5 approved by one or more regulatory agencies. The department line 6 may also establish mitigation banks or conservation banks, or fund line 7 the establishment of mitigation banks or conservation banks, in line 8 accordance with applicable state and federal standards if the line 9 department determines that those banks would provide biologically line 10 appropriate mitigation for planned transportation improvements line 11 identified pursuant to Section 21207. line 12 (2)  Pay mitigation fees under natural community conservation line 13 plans approved pursuant to Chapter 10 (commencing with Section line 14 2800) of Division 3 of the Fish and Game Code, or habitat line 15 conservation plans approved in accordance with the federal line 16 Endangered Species Act. line 17 (3)  Prepare, or fund the preparation of, regional conservation line 18 investment strategies. Where a regional conservation framework line 19 has been approved by the Department of Fish and Wildlife, the line 20 department may do the following: line 21 (A)  Enter into a mitigation credit agreement with the Department line 22 of Fish and Wildlife, and acquire, restore, manage, monitor, protect, line 23 and preserve lands , waterways, aquatic resources or fisheries, or line 24 fund the acquisition, restoration, management, monitoring, line 25 protection, and preservation of lands, waterways, aquatic resources, line 26 or fisheries, as needed to generate mitigation credits pursuant to line 27 those mitigation credit agreements. line 28 (B)  Acquire, restore, manage, monitor, and preserve lands, line 29 waterways, aquatic resources, or fisheries, or fund the acquisition, line 30 restoration, management, monitoring, and preservation of lands, line 31 waterways, aquatic resources, or fisheries that would measurably line 32 advance a conservation objective in the regional conservation line 33 investment strategy if the department concludes that the action or line 34 actions could conserve or create environmental values that are line 35 appropriate to mitigate the anticipated potential impacts of planned line 36 transportation improvements. line 37 (4)  Prepare, or fund the preparation of, regional advance line 38 mitigation plans within the area of any regional conservation line 39 investment strategy that has been approved by the Department of line 40 Fish and Wildlife. The purpose of a regional advance mitigation 99 — 28 —SB 1 221 line 1 plan shall be to identify potential mitigation needs for planned line 2 transportation improvements, to facilitate the acquisition or line 3 generation of mitigation credits and values that could be used to line 4 fulfill those needs and thereby to avoid delays in the environmental line 5 permitting of those transportation improvements. A regional line 6 advance mitigation plan shall do all of the following: line 7 (A)  Use the information and analysis in the regional line 8 conservation investment strategy to estimate the nature and extent line 9 of potential mitigation requirements of planned transportation line 10 improvements on a regional or statewide basis. line 11 (B)  Consider the full range of potential impacts on natural line 12 resources of planned transportation improvements. line 13 (C)  Identify available mitigation credits at mitigation banks or line 14 conservation banks approved by one or more regulatory agencies line 15 that could be used to mitigate the impacts of planned transportation line 16 improvements. line 17 (D)  Assess whether, and to what extent, mitigation requirements line 18 for planned transportation improvements could be fulfilled by the line 19 payment of mitigation fees under approved natural community line 20 conservation plans and habitat conservation plans. line 21 (E)  Assess whether, and to what extent, mitigation requirements line 22 for planned transportation improvements could be fulfilled by line 23 mitigation credits created under a mitigation credit agreement. line 24 (F)  Assess whether conservation actions or habitat enhancements line 25 that would measurably advance an unmet conservation objective line 26 in the regional conservation investment strategy could conserve line 27 or create environmental values that are appropriate to mitigate the line 28 anticipated potential impacts of planned transportation line 29 improvements and could fulfill mitigation requirements resulting line 30 from those impacts. line 31 (G)  Analyze the cost-effectiveness of available mitigation line 32 alternatives both in terms of environmental benefits and improved line 33 project delivery and certainty. line 34 (b)  The department shall track all advance mitigation actions line 35 implemented and all mitigation credits generated under the program line 36 for environmental mitigation for transportation improvements. line 37 (c)  The department may use mitigation credits to fulfill line 38 mitigation requirements of a transportation improvement eligible line 39 for the State Transportation Improvement Program or the State line 40 Highway Operation and Protection Program. 99 SB 1— 29 — 222 line 1 (d)  The department may use, or allow local or state line 2 transportation agencies to use, mitigation credits or values line 3 generated or obtained under the program to fulfill the mitigation line 4 requirements of planned transportation improvements if the line 5 applicable transportation agency reimburses the program for all line 6 costs of purchasing or creating the mitigation credits or values, as line 7 determined by the department. Those costs shall be calculated line 8 using total cost accounting and shall include, as applicable, land line 9 acquisition or conservation easement costs, monitoring and line 10 enforcement costs, restoration costs, transaction costs, line 11 administrative costs, contingency costs, and land management, line 12 monitoring, and protection costs. line 13 21206. No later than February 1, 2017, the department shall line 14 establish an interagency transportation advance mitigation steering line 15 committee consisting of the department and appropriate state and line 16 federal regulatory agencies to support the program so that advance line 17 mitigation can be used as required mitigation for planned line 18 transportation improvements and can provide improved line 19 environmental outcomes. The committee shall advise the line 20 department of opportunities to carry out advance mitigation line 21 improvements, provide the best available science, and actively line 22 participate in mitigation instrument reviews and approvals. The line 23 committee shall seek to develop streamlining opportunities, line 24 including those related to landscape scale mitigation planning and line 25 alignment of federal and state regulations and procedures related line 26 to mitigation requirements and implementation. The committee line 27 shall also provide input on crediting, using, and tracking of advance line 28 mitigation investments. line 29 21207. The Advance Mitigation Fund is hereby created in the line 30 State Transportation Fund as a revolving fund. Notwithstanding line 31 Section 13340 of the Government Code, the fund shall be line 32 continuously appropriated without regard to fiscal years. The line 33 moneys in the fund shall be programmed by the commission for line 34 the planning and implementation of advance mitigation line 35 improvements consistent with the purposes of this chapter. After line 36 the transfer of moneys to the fund for four fiscal years pursuant to line 37 subdivision (c) of Section 2032 of the Streets and Highways Code, line 38 commencing in the 2017–18 fiscal year, the program is intended line 39 to be self-sustaining. Advance expenditures from the fund shall line 40 later be reimbursed from project funding available at the time a 99 — 30 —SB 1 223 line 1 planned transportation improvement is constructed. A maximum line 2 of 5 percent of available funds may be used for administrative line 3 purposes. line 4 21208. The program is intended to improve the efficiency and line 5 efficacy of mitigation only and is not intended to supplant the line 6 requirements of the California Environmental Quality Act (Division line 7 13 (commencing with Section 21000)) or any other environmental line 8 law. The identification of planned transportation improvements line 9 and of mitigation improvements or measures for planned line 10 transportation improvements under this division does not imply line 11 or require approval of those improvements for purposes of the line 12 California Environmental Quality Act (Division 13 (commencing line 13 with Section 21000)) or any other environmental law. line 14 SEC. 15. Section 99312.1 of the Public Utilities Code is line 15 amended to read: line 16 99312.1. (a)  Revenues transferred to the Public Transportation line 17 Account pursuant to Sections 6051.8 and 6201.8 of the Revenue line 18 and Taxation Code for the State Transit Assistance Program are line 19 hereby continuously appropriated to the Controller for allocation line 20 as follows: line 21 (a) line 22 (1)  Fifty percent for allocation to transportation planning line 23 agencies, county transportation commissions, and the San Diego line 24 Metropolitan Transit Development Board pursuant to Section line 25 99314. line 26 (b) line 27 (2)  Fifty percent for allocation to transportation agencies, county line 28 transportation commissions, and the San Diego Metropolitan line 29 Transit Development Board for purposes of Section 99313. line 30 For line 31 (b)  For purposes of this chapter, the revenues allocated pursuant line 32 to this section shall be subject to the same requirements as revenues line 33 allocated pursuant to subdivisions (b) and (c), as applicable, of line 34 Section 99312. line 35 (c)  The revenues transferred to the Public Transportation line 36 Account for the State Transit Assistance Program that are line 37 attributable to the increase in the sales and use tax on diesel fuel line 38 pursuant to subdivision (b) of Section 6051.8 of the Revenue and line 39 Taxation Code, as adjusted pursuant to subdivision (c) of that line 40 section, and subdivision (b) of Section 6201.8 of the Revenue and 99 SB 1— 31 — 224 line 1 Taxation Code, as adjusted pursuant to subdivision (c) of that line 2 section, upon allocation pursuant to Sections 99313 and 99314, line 3 shall only be expended on the following: line 4 (1)  Transit capital projects or services to maintain or repair a line 5 transit operator’s existing transit vehicle fleet or existing transit line 6 facilities, including rehabilitation or modernization of existing line 7 vehicles or facilities. line 8 (2)  The design, acquisition, and construction of new vehicles line 9 or facilities that improve existing transit services. line 10 (3)  Transit services that complement local efforts for repair and line 11 improvement of local transportation infrastructure. line 12 (d)  (1)  Prior to receiving an apportionment of funds pursuant line 13 to subdivision (c) from the Controller in a fiscal year, a recipient line 14 transit agency shall submit to the Department of Transportation line 15 a list of projects proposed to be funded with these funds. The list line 16 of projects proposed to be funded with these funds shall include line 17 a description and location of each proposed project, a proposed line 18 schedule for the project’s completion, and the estimated useful life line 19 of the improvement. The project list shall not limit the flexibility line 20 of a recipient transit agency to fund projects in accordance with line 21 local needs and priorities so long as the projects are consistent line 22 with subdivision (c). line 23 (2)  The department shall report to the Controller the recipient line 24 transit agencies that have submitted a list of projects as described line 25 in this subdivision and that are therefore eligible to receive an line 26 apportionment of funds for the applicable fiscal year. The line 27 Controller, upon receipt of the report, shall apportion funds line 28 pursuant to Sections 99313 and 99314. line 29 (e)  For each fiscal year, each recipient transit agency receiving line 30 an apportionment of funds pursuant to subdivision (c) shall, upon line 31 expending those funds, submit documentation to the department line 32 that includes a description and location of each completed project, line 33 the amount of funds expended on the project, the completion date, line 34 and the estimated useful life of the improvement. line 35 (f)  The audit of transit operator finances required pursuant to line 36 Section 99245 shall verify that the revenues identified in line 37 subdivision (c) have been expended in conformance with these line 38 specific requirements and all other generally applicable line 39 requirements. 99 — 32 —SB 1 225 line 1 SEC. 16. Section 6051.8 of the Revenue and Taxation Code line 2 is amended to read: line 3 6051.8. (a)  Except as provided by Section 6357.3, in addition line 4 to the taxes imposed by this part, for the privilege of selling line 5 tangible personal property at retail a tax is hereby imposed upon line 6 all retailers at the rate of 1.75 percent of the gross receipts of any line 7 retailer from the sale of all diesel fuel, as defined in Section 60022, line 8 sold at retail in this state on and after the operative date of this line 9 subdivision. fuel. line 10 (b)  Notwithstanding subdivision (a), for the 2011–12 fiscal year line 11 only, the rate referenced in subdivision (a) shall be 1.87 percent. line 12 (c)  Notwithstanding subdivision (a), for the 2012–13 fiscal year line 13 only, the rate referenced in subdivision (a) shall be 2.17 percent. line 14 (d)  Notwithstanding subdivision (a), for the 2013–14 fiscal year line 15 only, the rate referenced in subdivision (a) shall be 1.94 percent. line 16 (b)  Except as provided by Section 6357.3, in addition to the line 17 taxes imposed by this part and by subdivision (a), for the privilege line 18 of selling tangible personal property at retail a tax is hereby line 19 imposed upon all retailers at the rate of 4 percent of the gross line 20 receipts of any retailer from the sale of all diesel fuel, as defined line 21 in Section 60022, sold at retail in this state. line 22 (c)  Beginning July 1, 2020, and every third year thereafter, the line 23 State Board of Equalization shall recompute the rates of the taxes line 24 imposed by this section. That computation shall be made as line 25 follows: line 26 (1)  The Department of Finance shall transmit to the State Board line 27 of Equalization the percentage change in the California Consumer line 28 Price Index for all items from November of three calendar years line 29 prior to November of the prior calendar year, no later than January line 30 31, 2020, and January 31 of every third year thereafter. line 31 (2)  The State Board of Equalization shall do all of the following: line 32 (A)  Compute an inflation adjustment factor by adding 100 line 33 percent to the percentage change figure that is furnished pursuant line 34 to paragraph (1) and dividing the result by 100. line 35 (B)  Multiply the preceding tax rate per gallon by the inflation line 36 adjustment factor determined in subparagraph (A) and round off line 37 the resulting product to the nearest tenth of a cent. line 38 (C)  Make its determination of the new rate no later than March line 39 1 of the same year as the effective date of the new rate. line 40 (e) 99 SB 1— 33 — 226 line 1 (d)  (1)   Notwithstanding subdivision (b) of Section 7102, except line 2 as otherwise provided in paragraph (2), all of the revenues, less line 3 refunds, collected pursuant to this section shall be estimated by line 4 the State Board of Equalization, with the concurrence of the line 5 Department of Finance, and transferred quarterly to the Public line 6 Transportation Account in the State Transportation Fund for line 7 allocation under the State Transit Assistance Program pursuant line 8 to Section 99312.1 of the Public Utilities Code. line 9 (2)  The revenues, less refunds, attributable to a rate of 0.5 line 10 percent of the 4-percent increase in the rate pursuant to subdivision line 11 (b), amounting to one-eighth of revenues from the increase in the line 12 rate under that subdivision, shall be estimated by the State Board line 13 of Equalization, with the concurrence of the Department of line 14 Finance, and transferred quarterly to the Public Transportation line 15 Account in the State Transportation Fund for allocation to the line 16 Department of Transportation, upon appropriation by the line 17 Legislature, to intercity rail and commuter rail purposes pursuant line 18 to Section 99315 of the Public Utilities Code. line 19 (f)  Subdivisions (a) to (e), inclusive, shall become operative on line 20 July 1, 2011. line 21 SEC. 17. Section 6201.8 of the Revenue and Taxation Code line 22 is amended to read: line 23 6201.8. (a)  Except as provided by Section 6357.3, in addition line 24 to the taxes imposed by this part, an excise tax is hereby imposed line 25 on the storage, use, or other consumption in this state of diesel line 26 fuel, as defined in Section 60022, at the rate of 1.75 percent of the line 27 sales price of the diesel fuel on and after the operative date of this line 28 subdivision. fuel. line 29 (b)  Notwithstanding subdivision (a), for the 2011–12 fiscal year line 30 only, the rate referenced in subdivision (a) shall be 1.87 percent. line 31 (c)  Notwithstanding subdivision (a), for the 2012–13 fiscal year line 32 only, the rate referenced in subdivision (a) shall be 2.17 percent. line 33 (d)  Notwithstanding subdivision (a), for the 2013–14 fiscal year line 34 only, the rate referenced in subdivision (a) shall be 1.94 percent. line 35 (b)  Except as provided by Section 6357.3, in addition to the line 36 taxes imposed by this part and by subdivision (a), an excise tax is line 37 hereby imposed on the storage, use, or other consumption in this line 38 state of diesel fuel, as defined in Section 60022, at the rate of 4 line 39 percent of the sales price of the diesel fuel. 99 — 34 —SB 1 227 line 1 (c)  Beginning July 1, 2020, and every third year thereafter, the line 2 State Board of Equalization shall recompute the rates of the taxes line 3 imposed by this section. That computation shall be made as line 4 follows: line 5 (1)  The Department of Finance shall transmit to the State Board line 6 of Equalization the percentage change in the California Consumer line 7 Price Index for all items from November of three calendar years line 8 prior to November of the prior calendar year, no later than January line 9 31, 2020, and January 31 of every third year thereafter. line 10 (2)  The State Board of Equalization shall do all of the following: line 11 (A)  Compute an inflation adjustment factor by adding 100 line 12 percent to the percentage change figure that is furnished pursuant line 13 to paragraph (1) and dividing the result by 100. line 14 (B)  Multiply the preceding tax rate per gallon by the inflation line 15 adjustment factor determined in subparagraph (A) and round off line 16 the resulting product to the nearest tenth of a cent. line 17 (C)  Make its determination of the new rate no later than March line 18 1 of the same year as the effective date of the new rate. line 19 (e) line 20 (d)  (1)   Notwithstanding subdivision (b) of Section 7102, except line 21 as otherwise provided in paragraph (2), all of the revenues, less line 22 refunds, collected pursuant to this section shall be estimated by line 23 the State Board of Equalization, with the concurrence of the line 24 Department of Finance, and transferred quarterly to the Public line 25 Transportation Account in the State Transportation Fund for line 26 allocation pursuant to Section 99312.1 of the Public Utilities Code. line 27 (2)  The revenues, less refunds, attributable to a rate of 0.5 line 28 percent of the 4-percent increase in the rate pursuant to subdivision line 29 (b), amounting to one-eighth of revenues from the increase in the line 30 rate under that subdivision, shall be estimated by the State Board line 31 of Equalization, with the concurrence of the Department of line 32 Finance, and transferred quarterly to the Public Transportation line 33 Account in the State Transportation Fund for allocation to the line 34 Department of Transportation, upon appropriation by the line 35 Legislature, to intercity rail and commuter rail purposes pursuant line 36 to Section 99315 of the Public Utilities Code. line 37 (f)  Subdivisions (a) to (e), inclusive, shall become operative on line 38 July 1, 2011. line 39 SEC. 18. Section 7360 of the Revenue and Taxation Code is line 40 amended to read: 99 SB 1— 35 — 228 line 1 7360. (a)  (1)  (A)  A tax of eighteen cents ($0.18) is hereby line 2 imposed upon each gallon of fuel subject to the tax in Sections line 3 7362, 7363, and 7364. line 4 (B)  In addition to the tax imposed pursuant to subparagraph line 5 (A), a tax of six cents ($0.06) is hereby imposed upon each gallon line 6 of fuel, other than aviation gasoline, subject to the tax in Sections line 7 7362, 7363, and 7364. Effective one year after the date that the line 8 six-cent ($0.06) tax is imposed, an additional tax of three cents line 9 ($0.03) is hereby imposed, and effective two years after the date line 10 that the six-cent ($0.06) tax is imposed, an additional tax of three line 11 cents ($0.03) is hereby imposed, on each gallon of fuel, other than line 12 aviation gasoline, subject to the tax in Sections 7362, 7363, and line 13 7364. line 14 (2)  If the federal fuel tax is reduced below the rate of nine cents line 15 ($0.09) per gallon and federal financial allocations to this state for line 16 highway and exclusive public mass transit guideway purposes are line 17 reduced or eliminated correspondingly, the tax rate imposed by line 18 subparagraph (A) of paragraph (1), on and after the date of the line 19 reduction, shall be recalculated by an amount so that the combined line 20 state rate under subparagraph (A) of paragraph (1) and the federal line 21 tax rate per gallon equal twenty-seven cents ($0.27). line 22 (3)  If any person or entity is exempt or partially exempt from line 23 the federal fuel tax at the time of a reduction, the person or entity line 24 shall continue to be so exempt under this section. line 25 (b)  (1)  On and after July 1, 2010, in addition to the tax imposed line 26 by subdivision (a), a tax is hereby imposed upon each gallon of line 27 motor vehicle fuel, other than aviation gasoline, subject to the tax line 28 in Sections 7362, 7363, and 7364 in an amount equal to seventeen line 29 and three-tenths cents ($0.173) per gallon. line 30 (2)  For the 2011–12 fiscal year and each fiscal year thereafter, line 31 the board shall, on or before March 1 of the fiscal year immediately line 32 preceding the applicable fiscal year, adjust the rate in paragraph line 33 (1) in that manner as to generate an amount of revenue that will line 34 equal the amount of revenue loss attributable to the exemption line 35 provided by Section 6357.7, based on estimates made by the board, line 36 and that rate shall be effective during the state’s next fiscal year. line 37 (3)  In order to maintain revenue neutrality for each year, line 38 beginning with the rate adjustment on or before March 1, 2012, line 39 the adjustment under paragraph (2) shall also take into account the line 40 extent to which the actual amount of revenues derived pursuant to 99 — 36 —SB 1 229 line 1 this subdivision and, as applicable, Section 7361.1, the revenue line 2 loss attributable to the exemption provided by Section 6357.7 line 3 resulted in a net revenue gain or loss for the fiscal year ending line 4 prior to the rate adjustment date on or before March 1. line 5 (4)  The intent of paragraphs (2) and (3) is to ensure that the act line 6 adding this subdivision and Section 6357.7 does not produce a net line 7 revenue gain in state taxes. line 8 (c)  Beginning July 1, 2020, and every third year thereafter, the line 9 State Board of Equalization shall recompute the rates of the taxes line 10 imposed by this section. That computation shall be made as line 11 follows: line 12 (1)  The Department of Finance shall transmit to the State Board line 13 of Equalization the percentage change in the California Consumer line 14 Price Index for all items from November of three calendar years line 15 prior to November of the prior calendar year, no later than January line 16 31, 2020, and January 31 of every third year thereafter. line 17 (2)  The State Board of Equalization shall do all of the following: line 18 (A)  Compute an inflation adjustment factor by adding 100 line 19 percent to the percentage change figure that is furnished pursuant line 20 to paragraph (1) and dividing the result by 100. line 21 (B)  Multiply the preceding tax rate per gallon by the inflation line 22 adjustment factor determined in subparagraph (A) and round off line 23 the resulting product to the nearest tenth of a cent. line 24 (C)  Make its determination of the new rate no later than March line 25 1 of the same year as the effective date of the new rate. line 26 SEC. 19. Section 8352.4 of the Revenue and Taxation Code line 27 is amended to read: line 28 8352.4. (a)  Subject to Sections 8352 and 8352.1, and except line 29 as otherwise provided in subdivision (b), there shall be transferred line 30 from the money deposited to the credit of the Motor Vehicle Fuel line 31 Account to the Harbors and Watercraft Revolving Fund, for line 32 expenditure in accordance with Division 1 (commencing with line 33 Section 30) of the Harbors and Navigation Code, the sum of six line 34 million six hundred thousand dollars ($6,600,000) per annum, line 35 representing the amount of money in the Motor Vehicle Fuel line 36 Account attributable to taxes imposed on distributions of motor line 37 vehicle fuel used or usable in propelling vessels. The actual amount line 38 shall be calculated using the annual reports of registered boats line 39 prepared by the Department of Motor Vehicles for the United line 40 States Coast Guard and the formula and method of the December 99 SB 1— 37 — 230 line 1 1972 report prepared for this purpose and submitted to the line 2 Legislature on December 26, 1972, by the Director of line 3 Transportation. If the amount transferred during each fiscal year line 4 is in excess of the calculated amount, the excess shall be line 5 retransferred from the Harbors and Watercraft Revolving Fund to line 6 the Motor Vehicle Fuel Account. If the amount transferred is less line 7 than the amount calculated, the difference shall be transferred from line 8 the Motor Vehicle Fuel Account to the Harbors and Watercraft line 9 Revolving Fund. No adjustment shall be made if the computed line 10 difference is less than fifty thousand dollars ($50,000), and the line 11 amount shall be adjusted to reflect any temporary or permanent line 12 increase or decrease that may be made in the rate under the Motor line 13 Vehicle Fuel Tax Law. Payments pursuant to this section shall be line 14 made prior to payments pursuant to Section 8352.2. line 15 (b)  (1)   Commencing July 1, 2016, 2017, the revenues line 16 attributable to the taxes imposed pursuant to subdivision (b) of line 17 Section 7360 and Section 7361.1 and otherwise to be deposited in line 18 the Harbors and Watercraft Revolving Fund pursuant to subdivision line 19 (a) shall instead be transferred to the General Fund. The revenues line 20 attributable to the taxes imposed Highway Users Tax Account for line 21 distribution pursuant to subdivision (b) of Section 7360 and Section line 22 7361.1 that were deposited in Section 2103.1 of the Harbors Streets line 23 and Watercraft Revolving Fund in the 2010–11 and 2011–12 fiscal line 24 years shall be transferred to the General Fund. Highways Code. line 25 (2)  Commencing July 1, 2017, the revenues attributable to the line 26 taxes imposed pursuant to subparagraph (B) of paragraph (1) of line 27 subdivision (a) of Section 7360 and otherwise to be deposited in line 28 the Harbors and Watercraft Revolving Fund pursuant to line 29 subdivision (a) shall instead be transferred to the Road line 30 Maintenance and Rehabilitation Account pursuant to Section 2031 line 31 of the Streets and Highways Code. line 32 SEC. 20. Section 8352.5 of the Revenue and Taxation Code line 33 is amended to read: line 34 8352.5. (a)  (1)  Subject to Sections 8352 and 8352.1, and line 35 except as otherwise provided in subdivision (b), there shall be line 36 transferred from the money deposited to the credit of the Motor line 37 Vehicle Fuel Account to the Department of Food and Agriculture line 38 Fund, during the second quarter of each fiscal year, an amount line 39 equal to the estimate contained in the most recent report prepared line 40 pursuant to this section. 99 — 38 —SB 1 231 line 1 (2)  The amounts are not subject to Section 6357 with respect line 2 to the collection of sales and use taxes thereon, and represent the line 3 portion of receipts in the Motor Vehicle Fuel Account during a line 4 calendar year that were attributable to agricultural off-highway line 5 use of motor vehicle fuel which is subject to refund pursuant to line 6 Section 8101, less gross refunds allowed by the Controller during line 7 the fiscal year ending June 30th 30 following the calendar year to line 8 persons entitled to refunds for agricultural off-highway use line 9 pursuant to Section 8101. Payments pursuant to this section shall line 10 be made prior to payments pursuant to Section 8352.2. line 11 (b)  (1)   Commencing July 1, 2016, 2017, the revenues line 12 attributable to the taxes imposed pursuant to subdivision (b) of line 13 Section 7360 and Section 7361.1 and otherwise to be deposited in line 14 the Department of Food and Agriculture Fund pursuant to line 15 subdivision (a) shall instead be transferred to the General Fund. line 16 The revenues attributable to the taxes imposed Highway Users line 17 Tax Account for distribution pursuant to subdivision (b) of Section line 18 7360 and Section 7361.1 that were deposited in the Department line 19 Section 2103.1 of Food and Agriculture Fund in the 2010–11 line 20 Streets and 2011–12 fiscal years shall be transferred to the General line 21 Fund. Highways Code. line 22 (2)  Commencing July 1, 2017, the revenues attributable to the line 23 taxes imposed pursuant to subparagraph (B) of paragraph (1) of line 24 subdivision (a) of Section 7360 and otherwise to be deposited in line 25 the Department of Food and Agriculture Fund pursuant to line 26 subdivision (a) shall instead be transferred to the Road line 27 Maintenance and Rehabilitation Account pursuant to Section 2031 line 28 of the Streets and Highways Code. line 29 (c)  On or before September 30, 2012, and on or before line 30 September 30 of each even-numbered year thereafter, the Director line 31 of Transportation and the Director of Food and Agriculture shall line 32 jointly prepare, or cause to be prepared, a report setting forth the line 33 current estimate of the amount of money in the Motor Vehicle line 34 Fuel Account attributable to agricultural off-highway use of motor line 35 vehicle fuel, which is subject to refund pursuant to Section 8101 line 36 less gross refunds allowed by the Controller to persons entitled to line 37 refunds for agricultural off-highway use pursuant to Section 8101; line 38 and they shall submit a copy of the report to the Legislature. line 39 SEC. 21. Section 8352.6 of the Revenue and Taxation Code line 40 is amended to read: 99 SB 1— 39 — 232 line 1 8352.6. (a)  (1)  Subject to Section 8352.1, and except as line 2 otherwise provided in paragraphs (2) and (3), on the first day of line 3 every month, there shall be transferred from moneys deposited to line 4 the credit of the Motor Vehicle Fuel Account to the Off-Highway line 5 Vehicle Trust Fund created by Section 38225 of the Vehicle Code line 6 an amount attributable to taxes imposed upon distributions of motor line 7 vehicle fuel used in the operation of motor vehicles off highway line 8 and for which a refund has not been claimed. Transfers made line 9 pursuant to this section shall be made prior to transfers pursuant line 10 to Section 8352.2. line 11 (2)  (A)   Commencing July 1, 2016, 2017, the revenues line 12 attributable to the taxes imposed pursuant to subdivision (b) of line 13 Section 7360 and Section 7361.1 and otherwise to be deposited in line 14 the Off-Highway Vehicle Trust Fund pursuant to paragraph (1) line 15 shall instead be transferred to the General Fund. The revenues line 16 attributable to the taxes imposed Highway Users Tax Account for line 17 distribution pursuant to subdivision (b) of Section 7360 and Section line 18 7361.1 that were deposited in Section 2103.1 of the Off-Highway line 19 Vehicle Trust Fund in the 2010–11 Streets and 2011–12 fiscal line 20 years shall be transferred to the General Fund. Highways Code. line 21 (B)  Commencing July 1, 2017, the revenues attributable to the line 22 taxes imposed pursuant to subparagraph (B) of paragraph (1) of line 23 subdivision (a) of Section 7360 and otherwise to be deposited in line 24 the Off-Highway Vehicle Trust Fund pursuant to subdivision (a) line 25 shall instead be transferred to the Road Maintenance and line 26 Rehabilitation Account pursuant to Section 2031 of the Streets line 27 and Highways Code. line 28 (3)  The Controller shall withhold eight hundred thirty-three line 29 thousand dollars ($833,000) from the monthly transfer to the line 30 Off-Highway Vehicle Trust Fund pursuant to paragraph (1), and line 31 transfer that amount to the General Fund. line 32 (b)  The amount transferred to the Off-Highway Vehicle Trust line 33 Fund pursuant to paragraph (1) of subdivision (a), as a percentage line 34 of the Motor Vehicle Fuel Account, shall be equal to the percentage line 35 transferred in the 2006–07 fiscal year. Every five years, starting line 36 in the 2013–14 fiscal year, the percentage transferred may be line 37 adjusted by the Department of Transportation in cooperation with line 38 the Department of Parks and Recreation and the Department of line 39 Motor Vehicles. Adjustments shall be based on, but not limited 99 — 40 —SB 1 233 line 1 to, the changes in the following factors since the 2006–07 fiscal line 2 year or the last adjustment, whichever is more recent: line 3 (1)  The number of vehicles registered as off-highway motor line 4 vehicles as required by Division 16.5 (commencing with Section line 5 38000) of the Vehicle Code. line 6 (2)  The number of registered street-legal vehicles that are line 7 anticipated to be used off highway, including four-wheel drive line 8 vehicles, all-wheel drive vehicles, and dual-sport motorcycles. line 9 (3)  Attendance at the state vehicular recreation areas. line 10 (4)  Off-highway recreation use on federal lands as indicated by line 11 the United States Forest Service’s National Visitor Use Monitoring line 12 and the United States Bureau of Land Management’s Recreation line 13 Management Information System. line 14 (c)  It is the intent of the Legislature that transfers from the Motor line 15 Vehicle Fuel Account to the Off-Highway Vehicle Trust Fund line 16 should reflect the full range of motorized vehicle use off highway line 17 for both motorized recreation and motorized off-road access to line 18 other recreation opportunities. Therefore, the Legislature finds that line 19 the fuel tax baseline established in subdivision (b), attributable to line 20 off-highway estimates of use as of the 2006–07 fiscal year, line 21 accounts for the three categories of vehicles that have been found line 22 over the years to be users of fuel for off-highway motorized line 23 recreation or motorized access to nonmotorized recreational line 24 pursuits. These three categories are registered off-highway line 25 motorized vehicles, registered street-legal motorized vehicles used line 26 off highway, and unregistered off-highway motorized vehicles. line 27 (d)  It is the intent of the Legislature that the off-highway motor line 28 vehicle recreational use to be determined by the Department of line 29 Transportation pursuant to paragraph (2) of subdivision (b) be that line 30 usage by vehicles subject to registration under Division 3 line 31 (commencing with Section 4000) of the Vehicle Code, for line 32 recreation or the pursuit of recreation on surfaces where the use line 33 of vehicles registered under Division 16.5 (commencing with line 34 Section 38000) of the Vehicle Code may occur. line 35 (e)  In the 2014–15 fiscal year, the Department of Transportation, line 36 in consultation with the Department of Parks and Recreation and line 37 the Department of Motor Vehicles, shall undertake a study to line 38 determine the appropriate adjustment to the amount transferred line 39 pursuant to subdivision (b) and to update the estimate of the amount line 40 attributable to taxes imposed upon distributions of motor vehicle 99 SB 1— 41 — 234 line 1 fuel used in the operation of motor vehicles off highway and for line 2 which a refund has not been claimed. The department shall provide line 3 a copy of this study to the Legislature no later than January 1, line 4 2016. line 5 SEC. 22. Section 60050 of the Revenue and Taxation Code is line 6 amended to read: line 7 60050. (a)  (1)  A tax of eighteen thirteen cents ($0.18) ($0.13) line 8 is hereby imposed upon each gallon of diesel fuel subject to the line 9 tax in Sections 60051, 60052, and 60058. line 10 (2)  If the federal fuel tax is reduced below the rate of fifteen line 11 cents ($0.15) per gallon and federal financial allocations to this line 12 state for highway and exclusive public mass transit guideway line 13 purposes are reduced or eliminated correspondingly, the tax rate line 14 imposed by paragraph (1), including any reduction or adjustment line 15 pursuant to subdivision (b), on and after the date of the reduction, line 16 (1) shall be increased by an amount so that the combined state rate line 17 under paragraph (1) and the federal tax rate per gallon equal what line 18 it would have been in the absence of the federal reduction. line 19 (3)  If any person or entity is exempt or partially exempt from line 20 the federal fuel tax at the time of a reduction, the person or entity line 21 shall continue to be exempt under this section. line 22 (b)  (1)  On July 1, 2011, the tax rate specified in paragraph (1) line 23 of subdivision (a) shall be reduced to thirteen cents ($0.13) and line 24 every July 1 thereafter shall be adjusted pursuant to paragraphs line 25 (2) and (3). line 26 (2)  For the 2012–13 fiscal year and each fiscal year thereafter, line 27 the board shall, on or before March 1 of the fiscal year immediately line 28 preceding the applicable fiscal year, adjust the rate reduction in line 29 paragraph (1) in that manner as to result in a revenue loss line 30 attributable to paragraph (1) that will equal the amount of revenue line 31 gain attributable to Sections 6051.8 and 6201.8, based on estimates line 32 made by the board, and that rate shall be effective during the state’s line 33 next fiscal year. line 34 (3)  In order to maintain revenue neutrality for each year, line 35 beginning with the rate adjustment on or before March 1, 2013, line 36 the adjustment under paragraph (2) shall take into account the line 37 extent to which the actual amount of revenues derived pursuant to line 38 Sections 6051.8 and 6201.8 and the revenue loss attributable to line 39 this subdivision resulted in a net revenue gain or loss for the fiscal 99 — 42 —SB 1 235 line 1 year ending prior to the rate adjustment date on or before March line 2 1. line 3 (4)  The intent of paragraphs (2) and (3) is to ensure that the act line 4 adding this subdivision and Sections 6051.8 and 6201.8 does not line 5 produce a net revenue gain in state taxes. line 6 (b)  In addition to the tax imposed pursuant to subdivision (a), line 7 an additional tax of twenty cents ($0.20) is hereby imposed upon line 8 each gallon of diesel fuel subject to the tax in Sections 60051, line 9 60052, and 60058. line 10 (c)  Beginning July 1, 2020, and every third year thereafter, the line 11 State Board of Equalization shall recompute the rates of the taxes line 12 imposed by this section. That computation shall be made as line 13 follows: line 14 (1)  The Department of Finance shall transmit to the State Board line 15 of Equalization the percentage change in the California Consumer line 16 Price Index for all items from November of three calendar years line 17 prior to November of the prior calendar year, no later than January line 18 31, 2020, and January 31 of every third year thereafter. line 19 (2)  The State Board of Equalization shall do all of the following: line 20 (A)  Compute an inflation adjustment factor by adding 100 line 21 percent to the percentage change figure that is furnished pursuant line 22 to paragraph (1) and dividing the result by 100. line 23 (B)  Multiply the preceding tax rate per gallon by the inflation line 24 adjustment factor determined in subparagraph (A) and round off line 25 the resulting product to the nearest tenth of a cent. line 26 (C)  Make its determination of the new rate no later than March line 27 1 of the same year as the effective date of the new rate. line 28 SEC. 23. Section 183.1 of the Streets and Highways Code is line 29 amended to read: line 30 183.1. (a)  Notwithstanding subdivision (a) of Section 182 or line 31 any other provision of law, Except as otherwise provided in Section line 32 54237.7 of the Government Code, money deposited into the account line 33 that is not subject to Article XIX of the California Constitution, line 34 including, but not limited to, money that is derived from the sale line 35 of documents, charges for miscellaneous services to the public, line 36 condemnation deposits fund investments, rental of state property, line 37 or any other miscellaneous uses of property or money, may be line 38 used for any transportation purpose authorized by statute, upon line 39 appropriation by the Legislature or, after transfer to another fund, line 40 upon appropriation by the Legislature from that fund. shall be 99 SB 1— 43 — 236 line 1 deposited in the Road Maintenance and Rehabilitation Account line 2 created pursuant to Section 2031. line 3 (b)  Commencing with the 2013–14 fiscal year, and not later line 4 than November 1 of each fiscal year thereafter, based on prior year line 5 financial statements, the Controller shall transfer the funds line 6 identified in subdivision (a) for the prior fiscal year from the State line 7 Highway Account to the Transportation Debt Service Fund in the line 8 State Transportation Fund, and those funds are continuously line 9 appropriated for the purposes specified for the Transportation Debt line 10 Service Fund. line 11 SEC. 24. Section 820.1 is added to the Streets and Highways line 12 Code, to read: line 13 820.1. (a)  The State of California consents to the jurisdiction line 14 of the federal courts with regard to the compliance, discharge, or line 15 enforcement of the responsibilities assumed by the department line 16 pursuant to Section 326 of, and subsection (a) of Section 327 of, line 17 Title 23 of the United States Code. line 18 (b)  In any action brought pursuant to the federal laws described line 19 in subdivision (a), no immunity from suit may be asserted by the line 20 department pursuant to the Eleventh Amendment to the United line 21 States Constitution, and any immunity is hereby waived. line 22 (c)  The department shall not delegate any of its responsibilities line 23 assumed pursuant to the federal laws described in subdivision (a) line 24 to any political subdivision of the state or its instrumentalities. line 25 (d)  Nothing in this section affects the obligation of the line 26 department to comply with state and federal law. line 27 SEC. 25. Chapter 2 (commencing with Section 2030) is added line 28 to Division 3 of the Streets and Highways Code, to read: line 29 line 30 Chapter 2. Road Maintenance and Rehabilitation line 31 Program line 32 line 33 2030. (a)  The Road Maintenance and Rehabilitation Program line 34 is hereby created to address deferred maintenance on the state line 35 highway system and the local street and road system. Funds made line 36 available by the program shall be prioritized for expenditure on line 37 basic road maintenance and road rehabilitation projects, and on line 38 critical safety projects. For funds appropriated pursuant to line 39 paragraph (1) of subdivision (d) of Section 2032, the California line 40 Transportation Commission shall adopt performance criteria, 99 — 44 —SB 1 237 line 1 consistent with the asset management plan required pursuant to line 2 14526.4 of the Government Code, to ensure efficient use of the line 3 funds available for these purposes in the program. line 4 (b)  (1)  Funds made available by the program shall be used for line 5 projects that include, but are not limited to, the following: line 6 (A)  Road maintenance and rehabilitation. line 7 (B)  Safety projects. line 8 (C)  Railroad grade separations. line 9 (D)  Complete street components, including active transportation line 10 purposes, pedestrian and bicycle safety projects, transit facilities, line 11 and drainage and stormwater capture projects in conjunction with line 12 any other allowable project. line 13 (E)  Traffic control devices. line 14 (2)  Funds made available by the program may also be used to line 15 satisfy a match requirement in order to obtain state or federal funds line 16 for projects authorized by this subdivision. line 17 2031. The following revenues shall be deposited in the Road line 18 Maintenance and Rehabilitation Account, which is hereby created line 19 in the State Transportation Fund: line 20 (a)  Notwithstanding subdivision (b) of Section 2103, the portion line 21 of the revenues in the Highway Users Tax Account attributable to line 22 the increases in the motor vehicle fuel excise tax pursuant to line 23 subparagraph (B) of paragraph (1) of subdivision (a) of Section line 24 7360 of the Revenue and Taxation Code, as adjusted pursuant to line 25 subdivision (c) of that section. line 26 (b)  The portion of revenues attributable to the increase in the line 27 motor vehicle fuel excise tax pursuant to subparagraph (B) of line 28 paragraph (1) of subdivision (a) of Section 7360 of the Revenue line 29 and Taxation Code, as adjusted pursuant to subdivision (c) of that line 30 section, and designated for the Road Maintenance and line 31 Rehabilitation Account pursuant to paragraph (2) of subdivision line 32 (b) of Section 8352.4 of, paragraph (2) of subdivision (b) of Section line 33 8352.5 of, and subparagraph (B) paragraph (2) of subdivision (a) line 34 of Section 8352.6 of, that code. line 35 (c)  The revenues from the increase in the vehicle registration line 36 fee pursuant to Section 9250.3 of the Vehicle Code, as adjusted line 37 pursuant to subdivision (b) of that section. line 38 (d)  The revenues from the increase in the vehicle registration line 39 fee pursuant to Section 9250.6 of the Vehicle Code, as adjusted line 40 pursuant to subdivision (b) of that section. 99 SB 1— 45 — 238 line 1 (e)  The revenues deposited in the account pursuant to Section line 2 183.1 of the Streets and Highways Code. line 3 (f)  Any other revenues designated for the program. line 4 2031.5. Each fiscal year the annual Budget Act shall contain line 5 an appropriation from the Road Maintenance and Rehabilitation line 6 Account to the Controller for the costs of carrying out his or her line 7 duties pursuant to this chapter and to the California Transportation line 8 Commission for the costs of carrying out its duties pursuant to this line 9 chapter and Section 14526.7 of the Government Code. line 10 2032. (a)  (1)  After deducting the amounts appropriated in the line 11 annual Budget Act, as provided in Section 2031.5, two hundred line 12 million dollars ($200,000,000) of the remaining revenues deposited line 13 in the Road Maintenance and Rehabilitation Account shall be set line 14 aside annually for counties that have sought and received voter line 15 approval of taxes or that have imposed fees, including uniform line 16 developer fees as defined by subdivision (b) of Section 8879.67 line 17 of the Government Code, which taxes or fees are dedicated solely line 18 to transportation improvements. The Controller shall each month line 19 set aside one-twelfth of this amount, to accumulate a total of two line 20 hundred million dollars ($200,000,000) in each fiscal year. line 21 (2)  Notwithstanding Section 13340 of the Government Code, line 22 the funds available under this subdivision in each fiscal year are line 23 hereby continuously appropriated for allocation to each eligible line 24 county and each city in the county for road maintenance and line 25 rehabilitation purposes pursuant to Section 2033. line 26 (b)  (1)  After deducting the amounts appropriated in the annual line 27 Budget Act pursuant to Section 2031.5 and the amount allocated line 28 in subdivision (a), beginning in the 2017–18 fiscal year, eighty line 29 million dollars ($80,000,000) of the remaining revenues shall be line 30 transferred annually to the State Highway Account for expenditure, line 31 upon appropriation by the Legislature, on the Active Transportation line 32 Program created pursuant to Chapter 8 (commencing with Section line 33 2380) of Division 3 to be allocated by the California Transportation line 34 Commission pursuant to Section 2381. line 35 (2)  In addition to the funds transferred in paragraph (1), the line 36 department shall annually identify savings achieved through line 37 efficiencies implemented at the department. The department, line 38 through the annual budget process, shall propose, from the line 39 identified savings, an appropriation to be included in the annual line 40 Budget Act of up to seventy million dollars ($70,000,000), but not 99 — 46 —SB 1 239 line 1 to exceed the total annual identified savings, from the State line 2 Highway Account for expenditure on the Active Transportation line 3 Program. line 4 (c)  After deducting the amounts appropriated in the annual line 5 Budget Act pursuant to Section 2031.5, the amount allocated in line 6 subdivision (a) and the amount transferred in paragraph (1) of line 7 subdivision (b), in the 2017–18, 2018–19, 2019–20, and 2020–21 line 8 fiscal years, the sum of thirty million dollars ($30,000,000) in each line 9 fiscal year from the remaining revenues shall be transferred to the line 10 Advance Mitigation Fund in the State Transportation Fund created line 11 pursuant to Section 21207 of the Public Resources Code. line 12 (d)  After deducting the amounts appropriated in the annual line 13 Budget Act pursuant to Section 2031.5, the amount allocated in line 14 subdivision (a), and the amounts transferred in paragraph (1) of line 15 subdivision (b) and in subdivision (c), beginning in the 2017–18 line 16 fiscal year and each fiscal year thereafter, and notwithstanding line 17 Section 13340 of the Government Code, there is hereby line 18 continuously appropriated to the California State University the line 19 sum of two million dollars ($2,000,000) from the remaining line 20 revenues for the purpose of conducting transportation research and line 21 transportation-related workforce education, training, and line 22 development. Prior to the start of each fiscal year, the chairs of the line 23 Assembly Committee on Transportation and the Senate Committee line 24 on Transportation and Housing shall confer and set out a line 25 recommended priority list of research components to be addressed line 26 in the upcoming fiscal year. line 27 (e)  Notwithstanding Section 13340 of the Government Code, line 28 the balance of the revenues deposited in the Road Maintenance line 29 and Rehabilitation Account are hereby continuously appropriated line 30 as follows: line 31 (1)  Fifty percent for allocation to the department for maintenance line 32 of the state highway system or for purposes of the state highway line 33 operation and protection program. line 34 (2)  Fifty percent for apportionment to cities and counties by the line 35 Controller pursuant to the formula in clauses (i) and (ii) of line 36 subparagraph (C) of paragraph (3) of subdivision (a) of Section line 37 2103 for the purposes authorized by this chapter. line 38 2033. (a)  On or before January 1, 2018, the commission, in line 39 cooperation with the department, transportation planning agencies, line 40 county transportation commissions, and other local agencies, shall 99 SB 1— 47 — 240 line 1 develop guidelines for the allocation of funds pursuant to line 2 subdivision (a) of Section 2032. line 3 (b)  The guidelines shall be the complete and full statement of line 4 the policy, standards, and criteria that the commission intends to line 5 use to determine how these funds will be allocated. line 6 (c)  The commission may amend the adopted guidelines after line 7 conducting at least one public hearing. line 8 2034. (a)  (1)  Prior to receiving an apportionment of funds line 9 under the program pursuant to paragraph (2) of subdivision (e) of line 10 Section 2032 from the Controller in a fiscal year, an eligible city line 11 or county shall submit to the commission a list of projects proposed line 12 to be funded with these funds pursuant to an adopted city or county line 13 budget. All projects proposed to receive funding shall be included line 14 in a city or county budget that is adopted by the applicable city line 15 council or county board of supervisors at a regular public meeting. line 16 The list of projects proposed to be funded with these funds shall line 17 include a description and the location of each proposed project, a line 18 proposed schedule for the project’s completion, and the estimated line 19 useful life of the improvement. The project list shall not limit the line 20 flexibility of an eligible city or county to fund projects in line 21 accordance with local needs and priorities so long as the projects line 22 are consistent with subdivision (b) of Section 2030. line 23 (2)  The commission shall report to the Controller the cities and line 24 counties that have submitted a list of projects as described in this line 25 subdivision and that are therefore eligible to receive an line 26 apportionment of funds under the program for the applicable fiscal line 27 year. The Controller, upon receipt of the report, shall apportion line 28 funds to eligible cities and counties. line 29 (b)  For each fiscal year, each city or county receiving an line 30 apportionment of funds shall, upon expending program funds, line 31 submit documentation to the commission that includes a description line 32 and location of each completed project, the amount of funds line 33 expended on the project, the completion date, and the estimated line 34 useful life of the improvement. line 35 2036. (a)  Cities and counties shall maintain their existing line 36 commitment of local funds for street, road, and highway purposes line 37 in order to remain eligible for an allocation or apportionment of line 38 funds pursuant to Section 2032. line 39 (b)  In order to receive an allocation or apportionment pursuant line 40 to Section 2032, the city or county shall annually expend from its 99 — 48 —SB 1 241 line 1 general fund for street, road, and highway purposes an amount not line 2 less than the annual average of its expenditures from its general line 3 fund during the 2009–10, 2010–11, and 2011–12 fiscal years, as line 4 reported to the Controller pursuant to Section 2151. For purposes line 5 of this subdivision, in calculating a city’s or county’s annual line 6 general fund expenditures and its average general fund expenditures line 7 for the 2009–10, 2010–11, and 2011–12 fiscal years, any line 8 unrestricted funds that the city or county may expend at its line 9 discretion, including vehicle in-lieu tax revenues and revenues line 10 from fines and forfeitures, expended for street, road, and highway line 11 purposes shall be considered expenditures from the general fund. line 12 One-time allocations that have been expended for street and line 13 highway purposes, but which may not be available on an ongoing line 14 basis, including revenue provided under the Teeter Plan Bond Law line 15 of 1994 (Chapter 6.6 (commencing with Section 54773) of Part 1 line 16 of Division 2 of Title 5 of the Government Code), may not be line 17 considered when calculating a city’s or county’s annual general line 18 fund expenditures. line 19 (c)  For any city incorporated after July 1, 2009, the Controller line 20 shall calculate an annual average expenditure for the period line 21 between July 1, 2009, and December 31, 2015, inclusive, that the line 22 city was incorporated. line 23 (d)  For purposes of subdivision (b), the Controller may request line 24 fiscal data from cities and counties in addition to data provided line 25 pursuant to Section 2151, for the 2009–10, 2010–11, and 2011–12 line 26 fiscal years. Each city and county shall furnish the data to the line 27 Controller not later than 120 days after receiving the request. The line 28 Controller may withhold payment to cities and counties that do line 29 not comply with the request for information or that provide line 30 incomplete data. line 31 (e)  The Controller may perform audits to ensure compliance line 32 with subdivision (b) when deemed necessary. Any city or county line 33 that has not complied with subdivision (b) shall reimburse the state line 34 for the funds it received during that fiscal year. Any funds withheld line 35 or returned as a result of a failure to comply with subdivision (b) line 36 shall be reapportioned to the other counties and cities whose line 37 expenditures are in compliance. line 38 (f)  If a city or county fails to comply with the requirements of line 39 subdivision (b) in a particular fiscal year, the city or county may line 40 expend during that fiscal year and the following fiscal year a total 99 SB 1— 49 — 242 line 1 amount that is not less than the total amount required to be line 2 expended for those fiscal years for purposes of complying with line 3 subdivision (b). line 4 2037. A city or county may spend its apportionment of funds line 5 under the program on transportation priorities other than those line 6 allowable pursuant to this chapter if the city’s or county’s average line 7 Pavement Condition Index meets or exceeds 80. line 8 2038. (a)  The department and local agencies, as a condition line 9 of receiving funds from the program, shall adopt and implement line 10 a program designed to promote and advance construction line 11 employment and training opportunities through preapprenticeship line 12 opportunities, either by the public agency itself or through line 13 contractors engaged by the public agencies to do work funded in line 14 whole or in part by funds made available by the program. line 15 (b)  The department and local agencies, as a condition of line 16 receiving funds from the program, shall ensure the involvement line 17 of the California Conservation Corps and certified community line 18 conservation corps in the delivery of projects and services funded line 19 in whole or in part by funds made available by the program. line 20 SEC. 26. Section 2103.1 is added to the Streets and Highways line 21 Code, to read: line 22 2103.1. (a)  Notwithstanding Section 2103, the revenues line 23 transferred to the Highway Users Tax Account pursuant to Sections line 24 8352.4, 8352.5, and 8352.6 of the Revenue and Taxation Code line 25 shall be distributed pursuant to the formula in paragraph (3) of line 26 subdivision (a) of Section 2103. line 27 (b)  Notwithstanding subdivision (b) of Section 2103, the portion line 28 of revenues in the Highway Users Tax Account attributable to the line 29 increases in the motor vehicle fuel excise tax pursuant to line 30 subparagraph (B) of paragraph (1) of subdivision (a) of Section line 31 7360 of the Revenue and Taxation Code, as adjusted pursuant to line 32 subdivision (c) of that section, shall be transferred to the Road line 33 Maintenance and Rehabilitation Account pursuant to Section 2031. line 34 (c)  Notwithstanding subdivision (b) of Section 2103, the portion line 35 of revenues in the Highway Users Tax Account attributable to the line 36 increase in the diesel fuel excise tax pursuant to subdivision (b) line 37 of Section 60050 of the Revenue and Taxation Code, as adjusted line 38 pursuant to subdivision (c) of that section, shall be transferred to line 39 the Trade Corridors Improvement Fund pursuant to Section 2192.4. 99 — 50 —SB 1 243 line 1 SEC. 27. Section 2192 of the Streets and Highways Code is line 2 amended to read: line 3 2192. (a)  (1)  The Trade Corridors Improvement Fund, created line 4 pursuant to subdivision (c) of Section 8879.23 of the Government line 5 Code, is hereby continued in existence to receive revenues from line 6 state sources other than the Highway Safety, Traffic Reduction, line 7 Air Quality, and Port Security Bond Act of 2006. This chapter line 8 shall govern expenditure of those other revenues. line 9 (2)  Revenues apportioned to the state under Section 167 of Title line 10 23 of the United States Code from the national highway freight line 11 program, pursuant to the federal Fixing America’s Surface line 12 Transportation Act (“FAST Act,” Public Law 114-94) shall be line 13 allocated for projects approved pursuant to this chapter. line 14 (b)  This chapter shall govern the expenditure of those state and line 15 federal revenues described in subdivision (a). line 16 (b)  The moneys in the fund from these other sources line 17 (c)  The funding described in subdivision (a) shall be available line 18 upon appropriation for allocation by the California Transportation line 19 Commission for infrastructure improvements in this state on line 20 federally designated Trade Corridors of National and Regional line 21 Significance, on the Primary Freight Network, and along other line 22 corridors that have a high volume of freight movement, as line 23 determined by the commission. commission and as identified in line 24 the state freight plan developed and adopted pursuant to Section line 25 13978.8 of the Government Code. In determining prioritizing the line 26 projects eligible for funding, the commission shall consult the line 27 Transportation Agency’s state freight plan as described in Section line 28 13978.8 of the Government Code, the State Air Resources Board’s line 29 Sustainable Freight Strategy adopted by Resolution 14-2, and the line 30 trade infrastructure and goods movement plan submitted to the line 31 commission by the Secretary of Transportation and the Secretary line 32 for Environmental Protection. The commission shall also consult line 33 California Sustainable Freight Action Plan released in July 2016 line 34 pursuant to Executive Order B-32-15, trade infrastructure and line 35 goods movement plans adopted by regional transportation planning line 36 agencies, adopted regional transportation plans required by state line 37 and federal law, and the statewide applicable port master plan line 38 when determining eligible projects for funding. plan. Eligible line 39 projects for the funding described in subdivision (a) shall further line 40 the state’s economic, environmental, and public health objectives 99 SB 1— 51 — 244 line 1 and goals for freight policy, as articulated in the plans to be line 2 consulted pursuant to this subdivision. Eligible projects for these line 3 funds include, but are not limited to, all of the following: are as line 4 follows: line 5 (1)  Highway Highway, local road, and rail capital and capacity line 6 improvements, rail landside access improvements, landside freight line 7 access improvements to airports, seaports, and land ports, and line 8 operational improvements to more efficiently accommodate the line 9 movement of freight, particularly for ingress and egress to and line 10 from the state’s land ports of entry entry, rail terminals, and line 11 seaports, including navigable inland waterways used to transport line 12 freight between seaports, land ports of entry, and airports, and to line 13 relieve traffic congestion along major trade or goods movement line 14 corridors. line 15 (2)  Freight rail system improvements to enhance the ability to line 16 move goods from seaports, land ports of entry, and airports to line 17 warehousing and distribution centers throughout California, line 18 including projects that separate rail lines from highway or local line 19 road traffic, improve freight rail mobility through mountainous line 20 regions, relocate rail switching yards, and other projects that line 21 improve the efficiency and capacity of the rail freight system. line 22 (3)  Projects to enhance the capacity and efficiency of ports. line 23 (3)  Infrastructure improvement projects to enhance the capacity line 24 and efficiency of ports without having the effect of displacing line 25 workers in port operations. line 26 (4)  Truck corridor and capital and operational improvements, line 27 including including, but not limited to, dedicated truck facilities line 28 or truck toll facilities. line 29 (5)  Border access capital and operational improvements that line 30 enhance goods movement between California and Mexico and that line 31 maximize the state’s ability to access coordinated border line 32 infrastructure funds made available to the state by federal law. line 33 (6)  Surface transportation and connector road capital and line 34 operational improvements to effectively facilitate the movement line 35 of goods, particularly for ingress and egress to and from the state’s line 36 land ports of entry, airports, and seaports, to relieve traffic line 37 congestion along major trade or goods movement corridors. line 38 (c)  (1)  The line 39 (d)  (1)  Except as provided in paragraph (2), In evaluating the line 40 program of projects to be funded with funds described in paragraph 99 — 52 —SB 1 245 line 1 (2) of subdivision (a), the commission shall evaluate the total line 2 potential economic and noneconomic benefits of the program of line 3 projects to California’s economy, environment, and public health. line 4 The commission shall consult with the agencies identified in line 5 Executive Order B-32-15 and metropolitan planning organizations line 6 in order to utilize the appropriate models, techniques, and methods line 7 to develop the parameters for evaluating the program of projects. line 8 The commission shall allocate funds the funding described in line 9 paragraph (2) of subdivision (a) for trade infrastructure line 10 improvements from the fund consistent with Section 8879.52 of line 11 the Government Code and the Trade Corridors Improvement Fund line 12 (TCIF) Guidelines adopted by the commission on November 27, line 13 2007, or as amended by the commission, and in a manner that (A) line 14 addresses the state’s most urgent needs, (B) balances the demands line 15 of various land ports of entry, seaports, and airports, (C) provides line 16 reasonable geographic balance between the state’s regions, and line 17 (D) places emphasis on projects that improve trade corridor line 18 mobility and safety while reducing emissions of diesel particulate line 19 and other pollutant emissions. emissions and reducing other line 20 negative community impacts, and (E) makes a significant line 21 contribution to the state’s economy. line 22 (2)  The commission shall allocate the federal freight funding, line 23 specifically, pursuant to the original TCIF Guidelines, as adopted line 24 by the commission on November 27, 2007, and in the manner line 25 described in (A) to (E), inclusive, of paragraph (1). line 26 (A)  One hundred fifty million dollars ($150,000,000) shall be line 27 dedicated exclusively to fund improvements to California’s existing line 28 or planned land ports of entry on the border with Mexico. The line 29 department, in consultation with the San Diego Association of line 30 Governments and the Imperial County Transportation Commission, line 31 shall nominate a program of projects for funding allocations that line 32 make border capital and operational improvements to enhance line 33 goods movement between California and Mexico and contribute line 34 to the reduction of emissions. line 35 (B)  Seventy million dollars ($70,000,000) shall be dedicated line 36 exclusively to fund projects for the elimination, alteration, or line 37 improvement of hazardous railroad-highway grade crossings. line 38 Projects shall be jointly nominated by the department and a line 39 regional transportation agency. 99 SB 1— 53 — 246 line 1 (C)  Three hundred sixty million dollars ($360,000,000) shall line 2 be available for projects nominated by regional transportation line 3 agencies and other public agencies, including counties, cities, and line 4 port authorities, in consultation with the department, and consistent line 5 with corridor-based programming targets contained in the Trade line 6 Corridors Investment Fund (TCIF) Guidelines adopted by the line 7 commission on November 27, 2007, or as amended by the line 8 commission, to provide reasonable geographic targets for funding line 9 allocations without constraining what an agency may propose or line 10 what the commission may approve. However, the San Diego line 11 Association of Governments, the Imperial County Transportation line 12 Commission, and other public agencies in San Diego and Imperial line 13 Counties shall be excluded from nominating projects under this line 14 subparagraph. line 15 (2)  The commission shall proportionately adjust the amounts line 16 in subparagraphs (A), (B), and (C) of paragraph (1) if the amount line 17 of funds described in paragraph (2) of subdivision (a) is less than line 18 or greater than five hundred eighty million dollars ($580,000,000). line 19 (3)  The commission shall adopt guidelines to allocate the line 20 funding described in subdivision (a) for trade infrastructure line 21 improvements in a manner that (A) addresses the state’s most line 22 urgent needs, (B) balances the demands of various land ports of line 23 entry, seaports, and airports, (C) provides reasonable geographic line 24 balance between the state’s regions, (D) places emphasis on line 25 projects that improve trade corridor mobility and safety while line 26 reducing emissions of diesel particulates, greenhouse gases, and line 27 other pollutants and reducing other negative community impacts, line 28 and (E) makes a significant contribution to the state’s economy. line 29 The commission shall adopt any amendments to the 2007 guidelines line 30 on or before April 1, 2017. line 31 (4)  In adopting amended guidelines, and developing and line 32 adopting the program of projects, the commission shall do all of line 33 the following: line 34 (A)  Accept nominations for projects to be included in the line 35 program of projects from regional and local transportation line 36 agencies and the department. line 37 (B)  Recognize the key role of the state in project identification line 38 and support integrating statewide goods movement priorities into line 39 the corridor approach. 99 — 54 —SB 1 247 line 1 (C)  Give the highest priority for funding allocations to projects line 2 jointly nominated by the department and a regional or other public line 3 agency. line 4 (3) line 5 (5)  In addition, the commission shall also consider the following line 6 factors when allocating these funds: funds under this section: line 7 (A)  “Velocity,” which means the speed by which large cargo line 8 would travel from the land port of entry or seaport through the line 9 distribution system. line 10 (B)  “Throughput,” which means the volume of cargo that would line 11 move from the land port of entry or seaport through the distribution line 12 system. line 13 (C)  “Reliability,” which means a reasonably consistent and line 14 predictable amount of time for cargo to travel from one point to line 15 another on any given day or at any given time in California. line 16 (D)  “Congestion reduction,” which means the reduction in line 17 recurrent daily hours of delay to be achieved. line 18 SEC. 28. Section 2192.2 of the Streets and Highways Code is line 19 amended to read: line 20 2192.2. The commission shall allocate funds made available line 21 by this chapter to projects that have identified and committed line 22 supplemental funding from appropriate local, federal, or private line 23 sources. The commission shall determine the appropriate amount line 24 of supplemental funding each project should have to be eligible line 25 for moneys from the fund based on a project-by-project review line 26 and an assessment of the project’s benefit to the state and the line 27 program. Except for border access Funded improvements described line 28 in paragraph (5) of subdivision (b) of Section 2192, improvements line 29 funded with moneys from the fund shall have supplemental funding line 30 that is at least equal to the amount of the contribution from the line 31 fund. under this chapter. The commission may give priority for line 32 funding to projects with higher levels of committed supplemental line 33 funding. line 34 SEC. 29. Section 2192.4 is added to the Streets and Highways line 35 Code, to read: line 36 2192.4. The portion of the revenues in the Highway Users Tax line 37 Account attributable to the increase in the diesel fuel excise tax line 38 pursuant to subdivision (b) of Section 60050 of the Revenue and line 39 Taxation Code, as adjusted pursuant to subdivision (c) of that 99 SB 1— 55 — 248 line 1 section, shall be transferred to the Trade Corridors Improvement line 2 Fund. line 3 SEC. 30. Section 9250.3 is added to the Vehicle Code, to read: line 4 9250.3. (a)  In addition to any other fees specified in this code line 5 or the Revenue and Taxation Code, commencing October 1, 2017, line 6 a registration fee of thirty-eight dollars ($38) shall be paid to the line 7 department for registration or renewal of registration of every line 8 vehicle subject to registration under this code, except those vehicles line 9 that are expressly exempted under this code from payment of line 10 registration fees. line 11 (b)  Beginning October 1, 2020, and every third year thereafter, line 12 the Department of Motor Vehicles shall adjust the fee imposed line 13 under this section for inflation in an amount equal to the change line 14 in the California Consumer Price Index for the prior three-year line 15 period, as calculated by the Department of Finance, with amounts line 16 equal to or greater than fifty cents ($0.50) rounded to the next line 17 highest whole dollar. line 18 (c)  Revenues from the fee, after the deduction of the line 19 department’s administrative costs related to this section, shall be line 20 deposited in the Road Maintenance and Rehabilitation Account line 21 created pursuant to Section 2031 of the Streets and Highways line 22 Code. line 23 SEC. 31. Section 9250.6 is added to the Vehicle Code, to read: line 24 9250.6. (a)  In addition to any other fees specified in this code, line 25 or the Revenue and Taxation Code, commencing October 1, 2017, line 26 a registration fee of one hundred dollars ($100) shall be paid to line 27 the department for registration or renewal of registration of every line 28 zero-emission motor vehicle subject to registration under this code, line 29 except those motor vehicles that are expressly exempted under line 30 this code from payment of registration fees. line 31 (b)  Beginning October 1, 2020, and every third year thereafter, line 32 the Department of Motor Vehicles shall adjust the fee imposed line 33 under this section for inflation in an amount equal to the change line 34 in the California Consumer Price Index for the prior three-year line 35 period, as calculated by the Department of Finance, with amounts line 36 equal to or greater than fifty cents ($0.50) rounded to the next line 37 highest whole dollar. line 38 (c)  Revenues from the fee, after deduction of the department’s line 39 administrative costs related to this section, shall be deposited in 99 — 56 —SB 1 249 line 1 the Road Maintenance and Rehabilitation Account created pursuant line 2 to Section 2031 of the Streets and Highways Code. line 3 (d)  This section does not apply to a commercial motor vehicle line 4 subject to Section 9400.1. line 5 (e)  The registration fee required pursuant to this section does line 6 not apply to the initial registration after the purchase of a new line 7 zero-emission motor vehicle. line 8 (f)  For purposes of this section, “zero-emission motor vehicle” line 9 means a motor vehicle as described in subdivisions (c) and (d) of line 10 Section 44258 of the Health and Safety Code, or any other motor line 11 vehicle that is able to operate on any fuel other than gasoline or line 12 diesel fuel. line 13 SEC. 32. Section 9400.5 is added to the Vehicle Code, to read: line 14 9400.5. (a)  Notwithstanding Sections 9400.1, 9400.4, and line 15 42205 of this code, Sections 16773 and 16965 of the Government line 16 Code, Section 2103 of the Streets and Highways Code, or any line 17 other law, weight fee revenues shall only be transferred consistent line 18 with the schedule provided in subdivision (b) from the State line 19 Highway Account to the Transportation Debt Service Fund, the line 20 Transportation Bond Direct Payment Account, or any other fund line 21 or account for the purpose of payment of the debt service on line 22 transportation general obligation bonds and shall not be loaned to line 23 the General Fund. line 24 (b)  (1)  The transfer of weight fee revenues, after deduction of line 25 collection costs, from the State Highway Account pursuant to line 26 subdivision (a) shall not exceed: line 27 (A)  Ninety percent of the total weight fees in the 2017–18 fiscal line 28 year. line 29 (B)  Eighty percent of the total weight fees in the 2018–19 fiscal line 30 year. line 31 (C)  Seventy percent of the total weight fees in the 2019–20 line 32 fiscal year. line 33 (D)  Sixty percent of the total weight fees in the 2020–21 fiscal line 34 year. line 35 (E)  Fifty percent of the total weight fees in 2021–22 and line 36 subsequent fiscal years. line 37 (2)  The California Transportation Commission, on or before line 38 January 1, 2018, shall recommend a course of action to the line 39 Legislature and the Governor that would provide for the portion line 40 of weight fees described in subparagraph (E) of paragraph (1) to 99 SB 1— 57 — 250 line 1 be retained in the State Highway Account or transferred to the line 2 Road Maintenance and Rehabilitation Account created pursuant line 3 to Section 2031. line 4 SEC. 33. The increases in tax rates in Sections 6051.8, 6201.8, line 5 7360, and 60050 of the Revenue and Taxation Code, as amended line 6 by this act, shall become effective on July 1, 2017. line 7 SEC. 34. This act is an urgency statute necessary for the line 8 immediate preservation of the public peace, health, or safety within line 9 the meaning of Article IV of the Constitution and shall go into line 10 immediate effect. The facts constituting the necessity are: line 11 In order to provide additional funding for road maintenance and line 12 rehabilitation purposes as quickly as possible, it is necessary for line 13 this act to take effect immediately. line 14 line 15 CORRECTIONS: line 16 Heading—Line 3. line 17 line 18 O 99 — 58 —SB 1 251 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2116 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:10/24/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: Citywide Parks, Open Space and Recreation Master Plan agreement for consultant services Sponsors: Indexes: Code sections: Attachments:Staff Report A - Parks and Rec Commission Minutes B - Draft Agreement Action ByDate Action ResultVer. City Council1/24/20171 Subject:CitywideParks,OpenSpaceandRecreationMasterPlanagreementforconsultant services AuthorizetheCityManagertonegotiateandexecuteaconsultantservicesagreementfor preparationoftheCitywideParks,OpenSpaceandRecreationMasterPlanforafeenotto exceed$210,000andauthorizeacontingencyallowanceanticipatedtobe$40,000andsubject to approval of the City Manager. CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™252 RECREATION AND COMMUNITY SERVICES DEPARTMENT QUINLAN COMMUNITY CENTER 10 10185 NORTH STELLING ROAD • CUPERTINO, CA 95014-5733 TELEPHONE: (408) 777-3120 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: January 24, 2017 Subject Citywide Parks, Open Space and Recreation Master Plan, agreement for consultant services Recommendation Authorize the City Manager to negotiate and execute a consultant services agreement for preparation of the Citywide Parks, Open Space and Recreation Master Plan for a fee not to exceed $210,000 and authorize a contingency allowance of $40,000 subject to approval of the City Manager. Background The Citywide Parks, Open Space and Recreation Master Plan (“Master Plan”) is a funded project included in the city’s current Capital Improvement Program. This project will prepare a citywide master plan to address the city’s long-term needs and goals for parks, recreation and open space. The objectives of the process include identifying the values of the community, providing a citywide vision for park and recreation facilities, establishing priorities for implementation, and developing a strategic direction for future improvements and a funding strategy. In summer 2015, a consultant selection process was conduct ed using a Request for Proposals procedure. The top two firms that submitted proposals were interviewed by a panel which included a member of the Parks and Recreation Commission and senior staff from several departments. The panel’s top choice firm was Royston Hanamoto Alley & Abey (RHAA). In August 2015 the City Council authorized execution of a consultant services agreement with RHAA. Services commenced in September 2015 after the agreement was executed. Between September and April 2016, the RHAA team evaluated background information and reviewed the city’s parks and facilities. Reports were prepared on topics such as 253 demographics and recreation trends. A public outreach process was launched in spring 2016 including a multi-month community-wide survey which continued into summer. The Parks and Recreation Commission has been very actively involved in the master planning process from the start. The entire Commission provides continuing oversight, and serves as the advisory body as well as an ongoing venue for public input. Commissioners have further engaged with the community by staffing ‘intercept’ booths at city events to help publicize the master plan and encourage public participation. Two of the commissioners participate in the city project team meetings and assist in detail in guiding the project progress. Discussion Progress on the Master Plan has been slower than anticipated during the several months. The consultant firm experienced ongoing staffing issues for many months, including the extended absence of key personnel, which detrimentally affected this assignment. Meanwhile it became clear that the consultant’s approach to providing services and deliverables has not met the objectives of the project team. The content, style, and organization of work tasks has not met the City’s expectations. This issue was discussed with the consultant and the city project team. The consultant’s improvement efforts to date have not been satisfactory and the city team has concluded that the services agreement should be ended. Prior to making a recommendation to move forward, staff conducted research to explore alternatives for proceeding. In particular, staff reviewed Parks and Recreation Master Plans of similar sized cities that won the prestigious Gold Medal award from the National Parks and Recreation Association and have recent park and recreation master plans. Two firms stood out as having prepared outstanding master plans for such cities. The first firm, Moore Iacofano Goltsman (MIG), creates high quality master plan work. This firm has extensive California experience, has ample recent local experience, and while the group specializing in parks planning is located in the Portland Oregon office, the firm has nearby offices in San Jose. They were also highly ranked as one of the top two firms in the selection process last year for our Master Plan. They were deemed very well qualified and a strong choice. The second strong firm (Pros Consulting) has extensive experience in the Midwest and is based there. However their experience in northern California is limited, and they would partner with a local landscape architecture firm to provide local knowledge and presence, thereby increasing costs. A third firm (GreenPlay) had prepared good plans, but once again is based out of state. Their experience was most extensive in the Rocky Mountain States and Midwest, and 254 would also require a California partner. There is no assurance that fees for the out of state firms could remain within the current budget for services, and neither one has significant recent master planning experience in our region. Staff also reached out to a well-regarded local firm that was recently interviewed for a nearby city’s similar process, but that did not submit a proposal to us last year. However this firm lacks recent citywide park planning experience. Staff took this information to the Parks and Recreation Commission on October 25 , 2016. The Commission voted in favor of the staff recommendation to conclude the existing services agreement and initiate a new agreement with MIG (see Attachment A). As noted above, MIG ranked in the top two during last year’s screening process. The firm has wide California experience, has local knowledge, and is currently conducting parks master plan processes for other Bay Area cities, including Palo Alto and San Jose. Their experience is strong, as is their caliber of work. They are fully available to take on this project should it be assigned to them. They can complete the work within the existing project budget. In reference checks, they received consistent excellent reviews from their clients for their performance and their work quality. The Parks and Recreation Commission has recommended that the City Council end the existing agreement, implement a new agreement with MIG and proceed with the project. Should the City Council approve this course of action, the current agreement with RHAA will be terminated. The Council is requested to authorize the City Manager to negotiate and execute a services agreement with MIG, for a fee not to exceed $210,000 for the scope of basic services. The proposed agreement is attached (see Attachment B). The recommendation also authorizes the City Manager to include a contingency allowance for potential additional services that fall within the scope of the overall project budget, with such contingency funds to be expended only upon advance written authorization and for services that exceed the scope identified in the agreement. The current consultant has completed approximately one third of the initial tasks, including review of background information, demographic analysis, recreation trends analysis, inventory of existing parks and facilities, and public outreach. The completed work products are useful and will be utilized. Remaining major tasks include developing a community vision and goals; prioritization criteria; a list of short, medium and long-term improvements; design alternatives for Memorial Park; cost analysis; identification of potential funding sources; preparing draft and final master plan documents; and continuing outreach and public input. Ending the current agreement is intended as an amicable arrangement for convenience. Staff wishes to note that RHAA is a respected, established landscape architecture firm, 255 and is well known for providing high-quality park design services such as the Magical Bridge inclusive playground in Palo Alto and many other noteworthy sites. No change to the existing project budget of $500,000 is requested. The existing services agreement with RHAA that would be terminated is for a base scope of $375,000 and for additional services, not to exceed a total of $412,500. The remaining project budget of $87,500 is for associated project costs and contingency. The work completed and paid for to date totals approximately $160,000. The recommended new agreement with a base scope of $210,000 falls well within the existing project budget. Fiscal Impact No fiscal impact will result from this action. The recommended agreement amount is within the existing project budget and no change is requested. Sustainability Impact The project will support the city’s sustainability and environmental policies and objectives. ____________________________________ Prepared by: Gail Seeds, Park Improvement Manager Reviewed by: Jeff Milkes, Director of Recreation & Community Services Christine Hanel, Assistant Director of Recreation & Community Services Approved for Submission by: David Brandt, City Manager Attachment A: Parks and Recreation Commission Minutes, Oct. 25, 2016 Attachment B: Draft Agreement 256 CITY OF CUPERTINO PARKS AND RECREATION COMMISSION Quinlan Community Center Cupertino Room 10185 N. Stelling Road, Cupertino, CA Tuesday, October 25, 2016 7:00 PM SPECIAL MEETING MINUTES CALL TO ORDER Chair Stanek called the meeting to order at 7:05 p.m. in the Quinlan Community Center Cupertino Room, 10185 N. Stelling Road, Cupertino, CA. PLEDGE OF ALLEGIANCE ROLL CALL Commissioners present: Carol Stanek, David Fung (arrived at 7:35), Judy Wilson, Helene Davis Commissioners absent: Neesha Tambe Staff present: Christine Hanel, Liz Nunez, Gail Seeds, Barbara Banfield APPROVAL OF MINUTES 1. Regular Meeting of September 1, 2016 – Vice Chair Davis moved to approve the minutes of September 1, 2016. Commissioner Fung seconded and motion was carried. ORAL COMMUNICATIONS None STAFF AND COMMISSION REPORTS Christine Hanel reported on following events:  10/15-Diwali Festival  10/20-Pizza & Politics- estimated 100 teens attended  10/22- Wildlife & Harvest Festival was well attended-estimated 2,000 attended  10/27-Hidden Treasures Fundraiser for Senior Center this week  11/11-Veteran’s Day Memorial Event @ Memorial Park Last month the Santa Clara Valley Water District presented to Parks & Rec. Commission the Permanente Creek Flood protection project including the detention basin that will be created at Rancho San Antonio County Park. They have awarded the construction contract and expect to begin the construction of first phase in the next couple of months. 257 Commission Reports: Commissioner Wilson attended the Diwali Festival. Vice Chair Davis was part of the Leadership 95014 panel representing the Parks & Recreation Commission. Also, attended the Diwali Festival and the Wildlife & Harvest Festival. NEW BUSINESS 2. Beekeeping Ordinance Gail Seeds reviewed the existing Beekeeping Ordinance and the revised draft Ordinance that will be presented to the Planning Commission tonight and to City Council in November. Staff report attached was submitted to Commission with the ordinance. Barbara Banfield answered questions from Commission. Discussion followed. The Commission indicated their support for the revised draft ordinance. OLD BUSINESS 3. City wide Parks, Open Space and Recreation Master Plan Staff Report attached was submitted to Commission. Staff reviewed the content in the staff report to consider changing the current consultant and initiating a new agreement for this project with another firm. Discussion followed. Staff requested that the Commission provide their input and make a motion on this topic. Commissioner Wilson made a motion to hire Moore Iacofano Goltsman (MIG) to continue the Master Plan project, Vice Chair Davis seconded. Commissioners voted 3 Yes and one No. Motion carried 3 to 1. 4. 2016-17 Work Plan Commissioner Wilson recommended reviewing the Work Plan when the new Director and possibly new Commissioner are on board in February. Chair Stanek recommended moving the Work Plan presentation to Council to the December 6th meeting. ADJOURNMENT – Chair Stanek adjourned the meeting at 8:25 p.m. Respectfully submitted, Christine Hanel, Acting Director Recreation and Community Services Department Minutes approved at the___ regular meeting 258 AGREEMENT BETWEEN THE CITY OF CUPERTINO AND MOORE IACOFANO GOLTSMAN FOR CONSULTANT SERVICES FOR CITYWIDE PARKS, OPEN SPACE AND RECREATION MASTER PLAN THIS AGREEMENT, for reference dated January __, 2017, is by and between CITY OF CUPERTINO, a municipal corporation (hereinafter referred to as "City"), and Moore Iacofano Goltsman (MIG), a California corporation, whose address is 800 Hearst Avenue, Berkeley, CA 94710 (hereinafter referred to as "Consultant"), and is made with reference to the following: RECITALS: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the Constitution and the statutes of the State of California and the Cupertino Municipal Code. B. Consultant is specially trained, experienced and competent to perform the special services which will be required by this Agreement; and C. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement on the terms and conditions described herein. D. City and Consultant desire to enter into an agreement for park and recreation master planning services upon the terms and conditions herein. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM: The term of this Agreement shall commence on the date this agreement is executed and shall terminate on March 31, 2019, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED: Consultant shall perform each and every service set forth in Exhibit "A". titled “Scope of Services” which is attached hereto and incorporated herein by this reference. 3. SCHEDULE OF PERFORMANCE: 259 Agreement between City of Cupertino Page 2 of 24 and MIG The Services of Consultant are to be completed according to the schedule set out in Exhibit B, titled “Schedule of Performance”, which is attached hereto and incorporated herein by this reference. 4. COMPENSATION TO CONSULTANT: The maximum compensation to be paid to Consultant under this agreement for Basic Services shall not exceed __________ Thousand Dollars ($XXX,000.00). The rate of payment is set out in Exhibit C, titled “Compensation”, which is attached hereto and incorporated herein. Consultant shall furnish to City a detailed statement of the work performed for compensation during the term of this Agreement. Consultant may submit monthly invoices for interim progress payments during the course of each phase, clearly stating as a minimum the total Contract amount, amount paid to date, percent complete and amount due. 5. TIME IS OF THE ESSENCE: Consultant and City agree that time is of the essence regarding the performance of this Agreement. 6. STANDARD OF CARE: Consultant agrees to perform all services hereunder in a manner commensurate with the prevailing standards of like professionals in the San Francisco Bay Area and agrees that all services shall be performed by qualified and experienced personnel who are not employed by the City nor have any contractual relationship with City. 7. INDEPENDENT PARTIES: City and Consultant intend that the relationship between them created by this Agreement is that of employer-independent contractor. The manner and means of conducting the work are under the control of Consultant, except to the extent they are limited by statute, rule or regulation and the express terms of this Agreement. No civil service status or other right of employment will be acquired by virtue of Consultant's services. None of the benefits provided by City to its employees, including but not limited to, unemployment insurance, workers' compensation plans, vacation and sick leave are available from City to Consultant, its employees or agents. Deductions shall not be made for any state or federal taxes, FICA payments, PERS payments, or other purposes normally associated with an employer-employee relationship from any fees due Consultant. Payments of the above items, if required, are the responsibility of Consultant. 8. IMMIGRATION REFORM AND CONTROL ACT (IRCA): 260 Agreement between City of Cupertino Page 3 of 24 and MIG Consultant assumes any and all responsibility for verifying the identity and employment authorization of all of his/her employees performing work hereunder, pursuant to all applicable IRCA or other federal, or state rules and regulations. Consultant shall indemnify and hold City harmless from and against any loss, damage, liability, costs or expenses arising from any noncompliance of this provision by Consultant. 9. NON-DISCRIMINATION: Consistent with City's policy that harassment and discrimination are unacceptable employer/employee conduct, Consultant agrees that harassment or discrimination directed toward a job applicant, a City employee, or a citizen by Consultant or Consultant's employee or subcontractor on the basis of race, religious creed, color, national origin, ancestry, handicap, disability, marital status, pregnancy, sex, age, or sexual orientation will not be tolerated. Consultant agrees that any and all violations of this provision shall constitute a material breach of this Agreement. 10. PROJECT COORDINATION CITY: Director of Recreation and Community Services shall be representative of City for all purposes under this Agreement. _________________ is hereby designated as the Director of Recreation and Community Services’ designee and Project Manager, and shall supervise the progress and execution of this Agreement. CONSULTANT: Consultant shall assign a single Consultant Project Manager to have overall responsibility for the progress and execution of this Agreement for Consultant. Should circumstances or conditions subsequent to the execution of the Agreement require a substitute Consultant Project Manager for any reason, the Consultant Project Manager designee shall be subject to the prior written acceptance and approval of the City Project Manager. The designated Consultant Project Manager shall be Lauren Schmitt. 11. HOLD HARMLESS: Indemnification: A. Claims for Professional Liability. Where the law establishes a standard of care for Consultant’s professional services, and to the extent the Consultant breaches or fails to meet such established standard of care, or is alleged to have breached or failed to meet such standard of care, Consultant shall, to the fullest extent allowed by law, with respect to all services performed in connection with the Agreement, indemnify, defend, and hold harmless the City and its officers, officials, agents, employees and volunteers from and against any and all liability, 261 Agreement between City of Cupertino Page 4 of 24 and MIG claims, actions, causes of action or demands whatsoever against any of them, including any injury to or death of any person or damage to property or other liability of any nature, that arise out of, pertain to, or relate to the negligence , recklessness, or willful misconduct of Consultant or Consultant's employees, officers, officials, agents or independent contractors. Such costs and expenses shall include reasonable attorneys’ fees of counsel of City’s choice, expert fees and all other costs and fees of litigation. Consultant shall not be obligated under this Agreement to indemnify City to the extent that the damage is caused by the sole negligence or willful misconduct of City, its agents or employees. B. Claims for Other Liability. Consultant shall, to the fullest extent allowed by law, with respect to all services performed in connection with the Agreement indemnify, defend, and hold harmless the City and its officers, officials, agents, employees and volunteers from and against any and all liability, claims, actions, causes of action or demands whatsoever against any of them, including any injury to or death of any person or damage to property or other liability of any nature, that arise out of, pertain to, or relate to the performance of this Agreement by Consultant or Consultant's employees, officers, officials, agents or independent contractors. Such costs and expenses shall include reasonable attorneys’ fees of counsel of City’s choice, expert fees and all other costs and fees of litigation. 12. INSURANCE: On or before the commencement of the term of this Agreement, Consultant shall furnish City with certificates showing the type, amount, class of operations covered, effective dates and dates of expiration of insurance coverage in compliance with paragraph 12A, B, C, D and E. Such certificates, which do not limit Consultant's indemnification, shall also contain substantially the following statement: "Should any of the above insurance covered by this certificate be canceled or coverage reduced before the expiration date thereof, the insurer affording coverage shall provide thirty (30) days' advance written notice to the City of Cupertino by certified mail, Attention: City Manager." It is agreed that Consultant shall maintain in force at all times during the performance of this Agreement all appropriate coverage of insurance required by this Agreement with an insurance company that is acceptable to City and licensed to do insurance business in the State of California. Endorsements naming the City as additional insured shall be submitted with the insurance certificates. A. COVERAGE: Consultant shall maintain the following insurance coverage: (1) Workers' Compensation: 262 Agreement between City of Cupertino Page 5 of 24 and MIG Statutory coverage as required by the State of California. (2) Liability: Commercial general liability coverage in the following minimum limits: Bodily Injury: $500,000 each occurrence $1,000,000 aggregate - all other Property Damage: $100,000 each occurrence $250,000 aggregate If submitted, combined single limit policy with aggregate limits in the amounts of $1,000,000 will be considered equivalent to the required minimum limits shown above. (3) Automotive: Comprehensive automotive liability coverage in the following minimum limits: Bodily Injury: $500,000 each occurrence Property Damage: $100,000 each occurrence or Combined Single Limit: $500,000 each occurrence (4) Professional Liability: Professional liability insurance which includes coverage for the professional acts, errors and omissions of Consultant in the amount of at least $1,000,000. B. SUBROGATION WAIVER: Consultant agrees that in the event of loss due to any of the perils for which he/she has agreed to provide comprehensive general and automotive liability insurance, Consultant shall look solely to his/her insurance for recovery. Consultant hereby grants to City, on behalf of any insurer providing comprehensive general and automotive liability insurance to either Consultant or City with respect to the services of Consultant herein, a waiver of any right to subrogation which any such insurer of said Consultant may acquire against City by virtue of the payment of any loss under such insurance. C. FAILURE TO SECURE: If Consultant at any time during the term hereof should fail to secure or maintain the foregoing insurance, City shall be permitted to obtain such insurance in the Consultant's name or as an agent of the Consultant and shall be compensated by the Consultant for the costs of the insurance premiums at the maximum rate permitted by law and computed from the date written notice is received that the premiums have not been paid. D. ADDITIONAL INSURED: 263 Agreement between City of Cupertino Page 6 of 24 and MIG City, its City Council, boards and commissions, officers, employees and volunteers shall be named as an additional insured under all insurance coverages, except any professional liability insurance, required by this Agreement. The naming of an additional insured shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured. An additional insured named herein shall not be held liable for any premium, deductible portion of any loss, or expense of any nature on this policy or any extension thereof. Any other insurance held by an additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance provided by this policy. E. SUFFICIENCY OF INSURANCE: The insurance limits required by City are not represented as being sufficient to protect Consultant. Consultant is advised to confer with Consultant's insurance broker to determine adequate coverage for Consultant. 13. CONFLICT OF INTEREST: Consultant warrants that it is not a conflict of interest for Consultant to perform the services required by this Agreement. Consultant may be required to fill out a conflict of interest form if the services provided under this Agreement require Consultant to make certain governmental decisions or serve in a staff capacity as defined in Title 2, Division 6, Section 18700 of the California Code of Regulations. 14. PROHIBITION AGAINST TRANSFERS: Consultant shall not assign, sublease, hypothecate, or transfer this Agreement, o r any interest therein, directly or indirectly, by operation of law or otherwise, without prior written consent of City. Any attempt to do so without said consent shall be null and void, and any assignee, sublease, hypothecate or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. However, claims for money by Consultant from City under this Agreement may be assigned to a bank, trust company or other financial institution without prior written consent. Written notice of such assignment shall be promptly furnished to City by Consultant. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Consultant, or of the interest of any general partner or joint venture or syndicate member or cotenant, if Consultant is a partnership or joint venture or syndicate or cotenancy, which shall result in changing the control of Consultant, shall be construed as an assignment of this Agreement. Control means fifty percent (50%) or more of the voting power of the corporation. 15. SUBCONTRACTOR APPROVAL: Unless prior written consent from City is obtained, only those people and subcontractors whose names are included in this Agreement shall be used in the performance of this Agreement. 264 Agreement between City of Cupertino Page 7 of 24 and MIG In the event that Consultant employs subcontractors, such subcontractors shall be required to furnish proof of workers' compensation insurance and shall also be required to carry general, automobile and professional liability insurance in reasonable conformity to the insurance carried by Consultant. In addition, any work or services subcontracted hereunder shall be subject to each provision of this Agreement. 16. PERMITS AND LICENSES: Consultant, at his/her sole expense, shall obtain and maintain during the term of this Agreement, all appropriate permits, certificates and licenses including, but not limited to, a City Business License, that may be required in connection with the performance of services hereunder. 17. REPORTS: A. Each and every report, draft, work product, map, record and other document, hereinafter collectively referred to as "Report", reproduced, prepared or caused to be prepared by Consultant pursuant to or in connection with this Agreement, shall be the exclusive property of City. Consultant shall not copyright any Report required by this Agreement and shall execute appropriate documents to assign to City the copyright to Reports created pursuant to this Agreement. Any Report, information and data acquired or required by this Agreement shall become the property of City, and all publication rights are reserved to City. Consultant may retain a copy of any report furnished to the City pursuant to this Agreement. B. All Reports prepared by Consultant may be used by City in execution or implementation of: (1) The original Project for which Consultant was hired; (2) Completion of the original Project by others; (3) Subsequent additions to the original project; and/or (4) Other City projects as appropriate. C. Consultant shall, at such time and in such form as City may require, furnish reports concerning the status of services required under this Agreement. D. All Reports required to be provided by this Agreement shall be printed on recycled paper. All Reports shall be copied on both sides of the paper except for one original, which shall be single sided. E. No Report, information or other data given to or prepared or assembled by Consultant pursuant to this Agreement shall be made available to any individual or organization by Consultant without prior approval by City. F. Electronic and hard copies of Consultant’s work product shall constitute the Project deliverables. Plans to be in CAD and PDF formats, and other documents to be in Microsoft Word and PDF formats. City holds Consultant harmless for any modifications to the documents. 265 Agreement between City of Cupertino Page 8 of 24 and MIG 18. RECORDS: Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to such books and records to the representatives of City or its designees at all proper times, and gives City the right to examine and audit same, and to make transcripts therefrom as necessary, and to allow inspection of all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be kept separate from other documents and records and shall be maintained for a period of three (3) years after receipt of final payment. If supplemental examination or audit of the records is necessary due to concerns raised by City's preliminary examination or audit of records, and the City's supplemental examination or audit of the records discloses a failure to adhere to appropriate internal financial controls, or other breach of contract or failure to act in good faith, then Consultant shall reimburse City for all reasonable costs and expenses associated with the supplemental examination or audit. 19. NOTICES: All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States Mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals from Consultant to City shall be addressed to City at: City of Cupertino, Quinlan Community Center 10185 North Stelling Road Cupertino CA 95014 Attention: Director of Recreation and Community Services All notices, demands, requests, or approvals from City to Consultant shall be addressed to Consultant at: MIG, Inc. 815 SW 2nd Avenue, Suite 200 Portland, OR 97204-3022 Attention: Lauren Schmitt 266 Agreement between City of Cupertino Page 9 of 24 and MIG 20. TERMINATION: In the event Consultant fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, Consultant shall be deemed in default in the performance of this Agreement. If such default is not cured within the time specified after receipt by Consultant from City of written notice of default, specifying the nature of such default and the steps necessary to cure such default, City may terminate the Agreement forthwith by giving to the Consultant written notice thereof. City shall have the option, at its sole discretion and without cause, of terminating this Agreement by giving seven (7) days' prior written notice to Consultant as provided herein. Upon termination of this Agreement, each party shall pay to the other party that portion of compensation specified in this Agreement that is earned and unpaid prior to the effective date of termination. In the event of termination, Consultant shall deliver to City, copies of all reports, documents, and other work performed by Consultant under this Agreement. 1. COMPLIANCES: Consultant shall comply with all state or federal laws and all ordinances, rules and regulations enacted or issued by City. A. PREVAILING WAGES: To the extent applicable, Contractor shall comply with the City’s Labor Compliance Program and all other requirements set forth in Labor Code section 1770 et seq. Contractor shall pay prevailing wages. Contractor will submit monthly certified payroll records to the City for all employees and subcontractors in a preapproved format or a City provided form. Any delay in remitting certified payroll reports to the City upon request from the City will result in either delay and/or forfeit of outstanding payment to Contractor. B. WORKING DAY: To the extent applicable, Contractor shall comply with California Labor Code Section 1810, et seq. which provides that work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, must be compensated as overtime, at not less than 1 ½ times the basic rate of pay. C. PAYROLL RECORDS: To the extent applicable, Contractor shall comply with California Labor Code Section 1776 which requires certified payroll records be maintained with the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with this Agreement. The Payroll Records shall be made available for inspection as provided in California Labor Code Section 1776. 267 Agreement between City of Cupertino Page 10 of 24 and MIG D. APPRENTICES: To the extent applicable, Contractor shall comply with California Labor Code Section 1777.5 regarding apprentices. 2. CONFLICT OF LAW: This Agreement shall be interpreted under, and enforced by the laws of the State of California excepting any choice of law rules which may direct the application of laws of another jurisdiction. The Agreement and obligations of the parties are subject to all valid laws, orders, rules, and regulations of the authorities having jurisdiction over this Agreement (or the successors of those authorities.) Any suits brought pursuant to this Agreement shall be filed with the courts of the County of Santa Clara, State of California. 3. ADVERTISEMENT: Consultant shall not post, exhibit, display or allow to be posted, exhibited, displayed any signs, advertising, show bills, lithographs, posters or cards of any kind pertaining to the services performed under this Agreement unless prior written approval has been secured from City to do otherwise. 4. WAIVER: A waiver by City of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. 5. INTEGRATED CONTRACT: This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions hereof. Any modification of this Agreement will be effective only by written execution signed by both City and Consultant. 6. GIFTS: A. Consultant is familiar with City’s prohibition against the acceptance of any gift by a City officer or designated employee, which prohibition is found in City Administrative Procedures. B. Consultant agrees not to offer any City officer or designated employee any gift prohibited by the Administrative Procedures. C. The offer or giving of any prohibited gift shall constitute a material breach of this 268 Agreement between City of Cupertino Page 11 of 24 and MIG Agreement by Consultant. In addition to any other remedies, City may have in law or equity, City may terminate this Agreement for such breach as provided in Section 19 of this Agreement. 7. INSERTED PROVISIONS: Each provision and clause required by law to be inserted into the Agreement shall be deemed to be enacted herein, and the Agreement shall be read and enforced as though each were included herein. If through mistake or otherwise, any such provision is not inserted or is not correctly inserted, the Agreement shall be amended to make such insertion on application by either party. 8. CAPTIONS: The captions in this Agreement are for convenience only, are not a part of the Agreement and in no way affect, limit or amplify the terms or provisions of this Agreement. 269 Agreement between City of Cupertino Page 12 of 24 and MIG P.O. No.: _________________ IN WITNESS WHEREOF, the parties have caused the Agreement to be executed. CONSULTANT CITY OF CUPERTINO MIG A Municipal Corporation By: ___ By: _____________________ Jeffrey Milkes, Director of Recreation and Community Services Name: _____________________ Date: ____________________ Title: ___ Date: _______________________ Tax I.D. No.: ________________ APPROVED AS TO FORM: Address: 800 Hearst Avenue Berkeley, CA 94710 _________________________ Randolph Stevenson Hom City Attorney ATTEST: ______________________________ Grace Schmidt, City Clerk Contract Amount: _________________ Account No. : ____________________ 270 Agreement between City of Cupertino Page 13 of 24 and MIG EXHIBIT A SCOPE OF SERVICES Moore Iacofano Goltsman (MIG) will be the prime consultant and coordinate the work of any subconsultants. Work by TRA Environmental Sciences (now a division of MIG), 2635 N. First Street, Suite 149, San Jose, CA 95134 is included in the base scope. Acceptable subconsultants may include: The Sports Management Group, 2607 7th Street, Berkeley, CA 94710 The consultant will provide services to the City that will result in a comprehensive master plan that assesses current park space, recreation facilities and recreation programs and current and projected community needs to guide future programmatic decisions and capital improvement planning. The anticipated scope of services follows. Monthly project meetings with the city project team are intended throughout the process and will occur in Cupertino unless noted otherwise. Weekly or bi-weekly update meetings are expected via telephone, Go To meeting or similar process as acceptable to City. Consultant shall provide agendas and meeting minutes. These ongoing meetings are considered part of project administration and are not noted in the scope below. Onsite project meetings may be scheduled to take advantage of other tasks involving meetings/workshops that are to occur in Cupertino. TASK A. Project Initiation Prior to embarking on remaining Scope of Work, Consultant will confer with City staff to develop a detailed and realistic work schedule. Consultant will identify all information to be provided by City staff. City staff will provide all requested documents efficiently. Consultant shall review and become familiar with all documents, data and information provided by City and shall alert City if any information gaps exist. A project initiation meeting with City staff and project team members will occur. Topics will include a review of scope, process and schedule. Consultant shall present the work schedule, which will be updated periodically during the project as needed. Meetings  Project Initiation Meeting with City staff/project team 271 Agreement between City of Cupertino Page 14 of 24 and MIG Deliverables  Work Schedule Materials to be provided by City: see Exhibit A-1 TASK B. City Policy and Standards Review; Demographic Analysis; Trends Report This task is completed. TASK C. Existing Parks, Open Space and Recreation Facilities and Programs Inventory/Analysis Report The consultant is to refine and complete a comprehensive inventory and analysis of all parks, open spaces, and trails, and is to identify and evaluate programs and servicesoffered by the existing recreation facilities. Consultant shall visit and review all City parks and recreation facilities. The inventory should note the user groups s and types of usage for primary facilities and typical usage windows. An analysis of the C ity's recreational programs is to be performed as part of this task to determine the level of recreational needs currently being met and to identify those recreational areas that are lacking or not being served in Cupertino. Program analysis and user group/usage information may be incorporated into the inventory report or may be provided separately. The inventory and analysis is to include (for each individual park, trail, open space and recreational facility):  Location  Size and Boundary  Use - Neighborhood or Regional e.g.  History as applicable – from City records (past renovations)  Current condition  Facilities – inventory of park and recreational facilities (playgrounds, play fields, ball courts, pools, gyms, trails, restrooms, structures, parking capacity)  Recreation programs – scheduled programs throughout the year (for programs provided by City)  Compliance with ADA requirements (see 2015 citywide report)  Constraints – Consultant to identify any features that compromise the full potential of the park  Opportunities – Consultant to identify opportunities to expand or enhance recreational opportunities  Operations and maintenance – Consultant to review with City and maintenance staff, including issues related to current and projected operations and maintenance requirements 272 Agreement between City of Cupertino Page 15 of 28 and MIG, Exhibit A  School facilities – Consultant to review school sport field facilities that are available for public use per the City-Cupertino Union School District maintenance and shared use agreement  Sustainability – Consultant to evaluate opportunities to increase sustainability practices such as reducing turf, energy and water consumption, etc. Consultant shall review and incorporate park and facility inventory work completed by others. Consultant staff shall perform their own independent evaluation of city parks, sites, facilities and programs. Inventory shall include parks, sites and facilities that are city-owned or city-operated or that City has an opportunity to program. Also included shall be other public or quasi-public sites that are available to the community (such as Rancho Rinconada recreation center). Consultant shall provide a GIS-based base map of the City suitable for use in geographic evaluation and upcoming tasks. Consultant shall prepare a map exhibit which indicates ‘walksheds’ to parks and recreation facilities based on ¼ mile and ½ mile distanc es using the existing street and trail network (or other distances as mutually agreeable). Consultant shall perform a geographic analysis of City parks and facilities and provide conclusions regarding deficiencies or opportunities. Evaluation of recreation programs/activities shall focus on City-provided recreation and programs or activities that City sponsors, hosts, or otherwise supports. Primary non-City recreation providers shall be noted and their programs summarized. Consultant shall issue a draft report containing the above-noted content. The report shall include an executive summary that provides an overview of the city setting and summarizes key points and findings. The draft report shall be posted and provided to the Parks and Recreation Commission (see task below). After public and Commission input has been received, Consultant shall incorporate revisions and issue a final report. Meetings  Site and Facility Field Reviews with staff Deliverables  Existing Parks and Recreation Facilities draft and final reports  Existing Programs draft and final reports TASK D. Gather Input and Assess Community Needs This phase includes the community outreach process, to solicit community input to assist with determining how Cupertino parks, trails, open spaces and recreation facilities can better meet the needs of the community. The community outreach and public input process is integral to the parks, trails and recreation master planning process. 273 Agreement between City of Cupertino Page 16 of 28 and MIG, Exhibit A Substantial work for this task has been implemented. Completed tasks include:  Community-wide survey conducted March-July 2016  Interviews with a variety of stakeholder groups  Booths and public outreach at community events including Big Bunny Fun Run, Earth Day and Arbor Day, Cupertino Day, and 4th of July allowing instant feedback regarding desirable facilities, amenities and programs  Community Workshop in May  Block Leader Workshop in June  Regular updates and input opportunities at Parks and Recreation Commission meetings Consultant shall conduct additional interviews with up to 8 stakeholders or involved parties, which may include elected officials, commissioners, school district representatives or others. Reports Consultant shall review draft reports and documentation prepared by others. Consultant shall prepare a report documenting the results of the overall public outreach process, and a report of the community-wide survey results. The report shall include an evaluation of the input that provides context, common themes and priorities, key unmet needs or deficiencies that were identified, conclusions, and an executive summary. Public Input/Commission Meetings Two Commission-hosted meetings will be held. The first is expected to focus on a presentation of the inventory and analysis information, and the results and findings from public outreach and the community-wide survey input. Consultant will prepare associated presentation materials (graphics, maps, PowerPoint, etc.). Public and Commission input will be invited. The second meeting is expected to focus on identifying the community’s Vision for the future of our parks and recreation and associated overarching Goals, together with objectives, policies, strategies, and/or actions. The Consultant will provide a draft Vision, goals and objectives which emphasize input from the community outreach efforts. This meeting is expected be conducted as a less formal workshop or study session format, as a more open and interactive public forum designed to promote interaction. Smaller group discussions may be used, as well as comment sheets to help capture additional ideas as they arise and invite participation by persons not comfortable with public speaking. Consultant will record the comments received and incorporate them into the findings, and adjust the Vision and Goals narratives as appropriate. As mutually agreeable, the Vision and Goals meeting may be combined with the preceding Commission meeting and the time will be used instead for a public meeting or workshop later in the process. On-line Outreach - Vision and Goals feedback Following the Vision and Goals meeting, Consultant shall conduct a short, targeted online 274 Agreement between City of Cupertino Page 17 of 28 and MIG, Exhibit A outreach effort. This effort will focus on eliciting feedback and comments on the refined Vision and Goals. The intent is to confirm that the Vision and Goals correctly represent community sentiment and to ensure that community members have an additional chance to participate before decision-making which is based on the goals proceeds. City Council Meeting Consultant shall prepare and provide an update presentation to the City Council following refinement of the Vision and Goals. The Council meeting may occur as a study session. Presentation shall provide an overview of all work and findings to date and invite Council to weigh in on project progress and the proposed Vision and Goals. Graphics Consultant shall provide new, fresh graphics and ‘branding’ for the Master Plan process which will be incorporated in fliers, website postings, and promotional efforts. Outreach will be ongoing through the City’s website. Consultant will provide web-ready uploads for posting, including reports, surveys, and other supporting data. Outreach will include use of social media sites and email notifications. Consultant will engage the broader public through interactive information sharing such as Facebook, Twitter and other platforms. Throughout the master planning process, Consultant shall provide materials such as fliers/notifications, updates, and materials for public information, suitable for website and social media postings and dissemination. Needs Assessment Consultant shall prepare a needs assessment and address current, medium and long-term needs of the community for parks and recreation facilities and programs. The needs assessment shall incorporate all manner of previous public input, input from stakeholder, staff, and Commissions, demographic and trends analyses, results of the evaluations of the existing system, local and regional setting, and related factors. Assessment should evaluate parks, open space, trails, facilities, and programs. An assessment shall also be prepared of the connections to and among park and recreation system destinations, with a focus on the current and proposed bicycle-pedestrian network. The assessment shall also address connections to nearby County and regional parks that are within or in proximity to Cupertino (Rancho San Antonio, Stevens Creek County Park, Fremont Older Open Space Preserve etc.). The intention is that connections themselves can become part of the overall park and recreation system, create an inviting citywide network, and provide an appealing means to be outdoors and to access desirable venues. The 2016 Bicycle Transportation Plan shall be thoughtfully evaluated from a perspective of supporting the parks and recreation system, with a fresh look at how potential projects could be prioritized to support park and recreation goals. Cupertino desires to identify a safe, attractive, robust network of non-vehicular connections that will integrate with and complement the extensive work that has gone into recent bicycle transportation planning efforts. Opportunities Evaluation – Parks and Recreation 275 Agreement between City of Cupertino Page 18 of 28 and MIG, Exhibit A Consultant shall identify opportunities to address needs. Opportunities may include modifying, repurposing, expanding or adding parks, facilities or programs; developing new partnerships or strengthening existing ones; shared-use or joint-use sites or facilities; or other methods. City-operated parks and facilities shall receive special focus. Consultant shall also consider other public and quasi-public sites and facilities for possible opportunities, such as County parks, regional open space preserves, water district creek corridors and percolation pond systems, railroad corridors, and highway and utility corridors. Consultant shall identify potential opportunities for physical expansion of parks, trails and recreation facilities. Opportunities may include use of existing or available easements and rights-of-way, collaboration with other agencies for access, potential future acquisitions from willing sellers, use of city-controlled or publicly-owned land to create community parks and/or facilities and connect gaps in the existing trail network, and any other opportunities to expand the park and recreation system to address identified needs. Opportunities Evaluation – Ecological Consultant shall identify and evaluate ecological opportunities within the existing and potential future citywide parks and recreation system. Ecological opportunities could include varied possibilities (for example, creating or extending healthy greenbelts, habitat areas, pollinator corridors, riparian creek corridors, fresh water sources for wildlife, healthy bird and wildlife populations, potential restoration zones, naturalized landscaping within conventional parks to support wildlife and promote sustainable values, urban tree canopy succession planning, or identifying opportunities for expanded environmental education programs). Meetings  Stakeholder meetings/teleconferences  1 Parks and Recreation Commission presentation  1 Parks and Recreation Commission presentation/workshop  1 City Council presentation Deliverables  Meeting agendas  Public Outreach Summary Report  Community-wide Survey Report  Vision and Goals Summary Report  Needs Assessment  Opportunities Evaluation  Project-specific graphics and branding  Meeting materials & presentation, Parks and Recreation Commission meeting  Meeting materials & presentation, Parks and Recreation Commission workshop  Presentation and report, City Council meeting 276 Agreement between City of Cupertino Page 19 of 28 and MIG, Exhibit A TASK E. Draft Parks, Open Space and Recreation Master Plan Report This task includes providing all materials needed for preparation of a draft City Wide Parks, Open Space and Recreation Master Plan Report. Prioritization Criteria An initial task will be preparation of prioritization criteria. The criteria will be used to evaluate and rank potential improvements to parks, facilities, programs, or elements of the park and recreation system. Draft criteria will be developed in collaboration with the city project team. Public Input/Commission Meeting The draft prioritization criteria will be presented at a public meeting hosted by the Parks and Recreation Commission. The meeting is expected to take the form of workshop or a study session which presents the draft criteria and invites active review, feedback and comments, with a goal to develop consensus on the prioritization criteria. The criteria will then be refined based upon public and Commission input. The refined criteria will be brought back to the Commission at the subsequent meeting. Development of Short, Medium and Long Term Projects and Programs The Consultant shall develop a draft list of proposed short, medium and long term capital projects and recreation programs (“Project List”), including both renovations and installation of new facilities, and current programs and desirable future programs that span the next approximately two decades. Prioritization criteria shall be used to guide the strategy for implementation. The Project List shall consider at a minimum:  Areas where outdated or underutilized facilities should be redeveloped  New and specialized facilities that should be considered  New key facilities (aquatic center, gymnasium, sport fields, e.g.) that should be considered  Renovation of playgrounds or facilities that do not conform with ADA standards  New and expanded recreational programs and associated recommendations A preliminary evaluation of to assist in prioritizing shall be prepared using prioritization criteria developed previously (see above) and likely the following:  Cost analysis for proposed items, including capital and operational/maintenance costs for recommended improvements  Likely usage/groups the project would serve  Constraints/potential impacts/difficulty for implementation  Timeline to accomplish goal (short, medium and long-term)  Phasing recommendations for major projects as appropriate 277 Agreement between City of Cupertino Page 20 of 28 and MIG, Exhibit A Public Input Workshop The needs assessment, opportunities evaluation, associated recommendations and draft Project List will be presented at a public meeting, anticipated as a workshop hosted by or attended by the Parks and Recreation Commission. Public input will be invited. The materials will then be refined based upon input received. The refined needs assessment, opportunities and Project List will be brought back to the Commission for public input and Commission review at a subsequent meeting. “Toolbox” & Illustrations/Site Plans Based on preceding tasks and public input, Consultant shall prepare illustrations of design concepts or sample site plans (see Task F below). Design concepts will illustrate sample solutions for a key feature or element of the park and recreation system. Sample site plans may address an individual park and provide a potential conceptual design diagram of potential renovations/modifications. Consultant shall develop a “toolbox” which identifies desired features and facilities, identifies parameters which indicate suitable or unsuitable settings and identifies potential locations for such features, together with associated lists, matrices, and/or maps. This effort is intended to serve as a tool moving into the future to support community decision-making as individual park sites are renovated or acquired. Sample site plans developed as part of Task F may be generic or may be specific to a site, per City direction to Consultant. Sites such as Jollyman, Portal, Wilson, and/or Linda Vista parks or others may merit preparation of a conceptual site plan. Note that the Memorial Park/Quinlan/Sports Center/Senior Center area will have more detailed concepts prepared. For the Memorial Park/Quinlan Community Center/Senior Center/Sports Center area, the Consultant shall prepare two to three Concept Plans and layouts for the property, anticipated as a viable conceptual layout but not as detailed as a schematic design; parking shall be evaluated also. The alternative concepts shall consider different levels of use intensity and site modification. Public Input Workshops The draft ‘Tool Box’ and Illustrations/Sample Plans and Memorial Park Area concepts will be presented at up to two public meetings, anticipated as workshops or study sessions hosted by the Parks and Recreation Commission. Public input will be invited. The items will then be refined based upon input received. Administrative Draft Report The administrative draft report is to analyze all of the data from the previous tasks and synthesize that information into a comprehensive report as noted below. The consultant is to make recommendations which take into account the current and future needs related to 278 Agreement between City of Cupertino Page 21 of 28 and MIG, Exhibit A parks, conditions of existing facilities, and cost of modifications in recommending how the current parks, trails, open space and recreational facilities and recreational programming should be maintained, modified or enhanced to serve short, medium and long range needs of the community. Planning -level cost estimates shall be provided for all options. The findings and recommendations will be reviewed and discussed at a community meeting and with the Parks and Recreation Commission and with the Planning Commission. Consultant is to work with staff and city project team in preparing the Public Draft Master Plan Report. An administrative draft of each major chapter/section of the draft Master Plan and of all exhibits and appendices shall be provided to staff for review. Some specific content of the Master Plan is discussed below. The Draft Master Plan Report is intended to contain generous use of illustrations, maps, exhibits, charts, and/or photos and visual imagery to supplement narrative sections and help convey findings. Executive Summary The draft Master Plan report shall include an Executive Summary which provides an overview of the process, outcomes, and recommendations and discusses all key points, findings and conclusions. Context & Setting The draft Master Plan report shall include a section that discusses Cupertino, its existing conditions, setting, related background, and provides a foundation for understanding the Master Plan outcomes. Vision and Goals The draft Master Plan report shall include a section that discusses in detail the Vision, Goals and associated objectives, policies or actions. Analysis Section The draft Master Plan report is to compile and summarize the analysis aspect of the master planning process. This section will include content from the Demographic Analysis report to assist in estimating recreation demand and likely participation. Projections will be made for short and medium term stages, and long term expectations noted. The demographic analysis is intended to provide insight into likely programs, activities, and underserved groups for future planning consideration. This section will include content from the Recreation Trends report regarding state and national trends which have a significant impact on the demand and delivery of recreational services. Planning implications for recreation programs, services and facilities will be identified. Cupertino’s demographic trends will be considered in this context and used to help ensure the wider trends analysis findings are relevant to the local community. 279 Agreement between City of Cupertino Page 22 of 28 and MIG, Exhibit A The overall Analysis Section is to include information from:  Analysis and assessment of the parks, trails, open space and recreational facilities and programs  Demographic analysis and Recreation Trends analyses  Community meetings input  Community survey  Stakeholder and staff input  Parks and Recreation Commission and public input  Prioritization criteria to assist in selection of short, medium and long term park, facility and programming improvements Needs Assessment The draft Master Plan report will include a Needs Assessment section which may be stand- alone or incorporated into the Analysis section. Opportunities The draft Master Plan report will include an Opportunities section which may be stand- alone or incorporated into the Analysis section. Short, Medium and Long Term Projects and Programs The draft Master Plan report will identify proposed short, medium and long term capital projects and recreation programs as discussed above. Prioritization criteria shall be included to guide the strategy for implementation. A timeline and budget to accomplish the goals shall be included. This section may be stand-alone or incorporated into another section as appropriate. Costs and Funding Sources Report A draft and final study shall be prepared addressing major costs and potential funding sources. The study results regarding funding and revenue shall be included in the Implementation Section below or as otherwise acceptable to City. Implementation Section The report is to include an Implementation section. This Section is to include at a minimum:  Identify areas of possible revenue generation  Identify potential cost-sharing  Identify potential sources of funding (note, new fees went into effect July 2016)  Identify the responsible party or group for achieving the key goals and objectives of the Master Plan  Identify items that will require additional staffing  Identify any major anticipated operational or maintenance impacts  Establish a time frame for accomplishing primary tasks 280 Agreement between City of Cupertino Page 23 of 28 and MIG, Exhibit A Public Draft Report Consultant shall incorporate feedback on the administrative draft report and prepare a Public Draft Report. Meetings  Up to 4 Public Input/Commission meetings or workshops (Prioritization Criteria, Needs Assessment/Opportunities/Recommendations, Project List, and Sample Plans/Toolbox)  1 City Council meeting Deliverables  Prioritization Criteria, draft and final  Project List (short, medium and long term capital projects and recreation programs), draft and final  Cost and funding sources study, draft and final  Other Master Plan elements noted above  Meeting materials and presentations as needed, for up to 4 Public Input/Commission Meetings or Workshops  Meeting summaries, for up to 4 Public Input/Commission meetings or workshops  Meeting materials and presentation, City Council meeting  Parks, Open Space and Recreation Master Plan, Administrative Draft  Parks, Open Space and Recreation Master Plan, Public Draft TASK F. Illustrations/Sample Site Plans The Consultant shall prepare up to ten illustrations of design concepts or sample site plans. Design concepts will illustrate sample solutions for an important feature or element of the park and recreation system. Sample site plans may address an individual park and provide a potential master plan (conceptual design diagram of potential renovations/modifications) and a written summary of the illustrations/sample site plans.  New facility or amenities components and suggested location(s)  Components to be removed if any  Site improvements  Pathway/circulation improvements if applicable  Parking area modifications and approx. capacity  Sustainable upgrade recommendations  Cost information will be addressed in Task E. For the Memorial Park/Quinlan Community Center/Senior Center/Sports Center area, the Consultant shall prepare two to three concept plans and layouts as noted in Task E above. Deliverables  Up to 10 Illustrations/Sample Site Plans and written summary, draft and final versions 281 Agreement between City of Cupertino Page 24 of 28 and MIG, Exhibit A TASK G. Community Review, Draft Master Plan The Consultant is to present the Draft Master Plan Report to the community for feedback and input. Public Input Meeting The draft Master Plan will be presented at a public meeting, anticipated as a workshop format. Public input and comments will be invited. The input will be provided to Commissioners at subsequent meetings. Public Input/Stakeholder Meeting The draft Master Plan will be presented at a second meeting, anticipated as workshop or as a presentation to an involved body such as the Bicycle Pedestrian Commission, Teen Commission, or other group. Public input and comments will be invited. The input will be provided to Commissioners at subsequent meetings. Meetings  2 Public Input meetings or workshops Deliverables  Meeting materials, presentation and report, 2 Community meetings or workshops TASK H. City Commissions & Officials Review, Draft Master Plan The Consultant is to present the Draft Master Plan Report and Park Master Plans to the City's Commissions and elected officials for input and feedback, anticipated to be in study session formats. Commission Meetings The draft Master Plan together with public input will be presented to the Planning Commission, or possibly a joint Planning-Parks and Recreation Commission meeting, for Commission feedback and further public input. The draft Master Plan together with public input will be presented to the Parks and Recreation Commission for Commission feedback and further public input. Consultant shall provide meeting summary for each meeting. Input received and any revisions requested by the Commissions will be forwarded to the City Council. City Council Meeting The draft Master Plan together with public and Commission input will be presented to the City Council for review. Consultant shall provide a meeting summary. 282 Agreement between City of Cupertino Page 25 of 28 and MIG, Exhibit A Meetings  1 Commission meeting (Planning Commission or joint Planning and Planning & Parks and Recreation Commission)  1 Parks and Recreation Commission meeting  1 City Council meeting Deliverables  Meeting agenda, meeting materials & presentations, 2 Commission meetings  Meeting agenda, meeting materials & presentation, 1 City Council meeting  Meeting summary reports, one for each meeting TASK I. Parks, Open Space and Recreation Master Plan, Final Draft and Final Upon final comment by City bodies, commissions and the community, the Consultant is to revise the Draft Master Plan Report to reflect the input received. This revised document shall be updated as the Final Draft Parks, Open Space and Recreation Master Plan. Upon its completion the consultant shall present the Final Draft Master Plan to the Commission(s) for their review and recommendation and provide the recommended document with any proposed final revisions to City Council for approval. After City Council action, Consultant shall incorporate any Council-requested revisions and submit the adopted Final Parks, Open Space and Recreation Master Plan. Meetings  1 Parks and Recreation Commission meeting  1 Planning Commission or second Parks and Recreation Commission meeting  1 City Council meeting, Final Draft Master Plan approval Deliverables  Final Draft Parks, Open Space and Recreation Master Plan  Meeting materials and presentation, 2 Commission meetings  Meeting materials and presentation, 1 City Council meeting  Final adopted Parks, Open Space and Recreation Master Plan (4 printed/bound copies; 1 unbound copy; 1 electronic copy in format acceptable to the City 283 Agreement between City of Cupertino Page 26 of 28 and MIG, Exhibit A EXHIBIT A-1 MATERIALS TO BE PROVIDED BY CITY Materials to be provided by City for Task A include:  City General Plan/Community Vision 2015-2040  City Capital Improvement Program 2016-17  City Comprehensive Annual Financial Report  Recreation & Community Services Budget  Stevens Creek Corridor Master Plan (2006 document and new document in prep)  McClellan Ranch Master Plan, 1993  McClellan Ranch Master Plan 2012 Update  McClellan Ranch Preserve, Historic Structures Assessment, January 2014  Bicycle Transportation Plan, adopted June 2016  North Vallco Master Plan, 2008  South Vallco Master Plan, 2008  South Vallco Connectivity Plan, Dec. 2014  ADA Self Evaluation and Transition Plan April 2015  Civic Center Master Plan 2015  Climate Action Plan January 2015  Recreation and Community Services Annual Reports  Facility Use Policy  Athletic Field Use Policy  Maintenance & Improvement Agreement for school fields, City and Cupertino Union School District, November 2016  Park & Recreation Facility available record documents  Recent Quarterly Recreation Brochures  Trail Plans & Assoc. Feasibility Studies (Saratoga Creek Trail; Stevens Creek Trail; Don Burnett Bridge and Homestead Road to Mary Avenue Trail)  Countywide Trail Prioritization and Gaps Analysis 2015  City standard details and specifications  City of Cupertino Community Surveys (aka Godbe Research surveys 284 Agreement between City of Cupertino Page 27 of 28 and MIG, Exhibit B EXHIBIT B SCHEDULE OF PERFORMANCE A detailed performance schedule will be developed as part of Task A. The overall project schedule includes: Council authorizes negotiation of services agreement: January 2017 Begin Task A: February 2017 Begin Task C: February 2017 Begin Task D: March 2017 Task I is anticipated to occur by early 2018, but may be adjusted during development of schedule. 285 Agreement between City of Cupertino Page 28 of 28 and MIG, Exhibit C EXHIBIT C COMPENSATION COMPENSATION for Basic Services Task A $ 2,400 Task B 0 Task C 36,000 Task D 35,300 Task E 72,800 Task F 7,100 Task G 9,500 Task H 13,200 Task I 18,400 Subtotal, Services, Tasks A - I $194,700 Reimbursable Expenses Allowance $14,900 Basic Services, Not to Exceed: $209,600 Additional Services Allowance: $40,000 TOTAL CONTRACT, Not to Exceed: $249,600 An allowance for Additional services is provided, to be expended only upon advance City authorization, in writing, for work outside the scope of basic services. Potential Additional Services are noted below.  Detailed program analysis of programs provided by other non-City providers.  Create and host a stand-alone project website.  Prepare for and attend additional public or Commission meeting. 286 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2151 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/8/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: 2015 Contractual Janitorial Services - Project No. 2015-23, contract amendment Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Amendment B - Draft Resolution to amend FY 16/17 Operating Budget Action ByDate Action ResultVer. City Council1/24/20171 Subject: 2015 Contractual Janitorial Services - Project No. 2015-23, contract amendment Staff recommends Council take the following actions: 1.AuthorizetheCityManagertoexecuteanamendment(AttachmentA)tothecurrent janitorialservicescontracttoprovideforincreasedcontractorcompensationduetothe adoption of City’s Minimum Wage Ordinance (Ordinance No. 2151); and 2. Adopt Resolution No. 17-005 amending approved FY 16/17 Operating Budget by an additional amount of $35,000 for janitorial services (Attachment B) CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™287 PUBLIC WORKS DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: January 24, 2017 Subject 2015 Contractual Janitorial Services – Project No. 2015-23, contract amendment. Recommended Action Staff recommends Council take the following actions: 1. Authorize the City Manager to execute an amendment (Attachment A) to the current janitorial services contract to provide for increased contractor compensation due to the adoption of City’s Minimum Wage Ordinance (Ordinance No. 2151); and 2. Adopt Draft Resolution amending approved FY 16/17 Operating Budget by an additional amount of $35,000 for janitorial services (Attachment B). Discussion On June 16, 2015, at the conclusion of a formal bidding process, Council authorized a contract award to IMPEC Group, Inc. (Contractor), for janitorial services. The term of the awarded contract was for three years, with an option to extend the term year to year for up to five years total. The schedule of bid prices for the awarded contract was itemized among scopes of work for twenty various City facilities. The bid prices for these various City facilities were lump sum and inclusive of all labor and materials necessary to complete the janitorial services specified in the contract. Due to the routine and reoccurring nature of janitorial work, prevailing wage requirements do not apply to this awarded contract. In 2015, when these services were subject to the formal bidding process, the applicable minimum wage was $9 per hour and scheduled to become $10 per hour beginning January 2016. Subsequently, the State of California has authorized legislation to increase the minimum wage to $10.50 per hour beginning January 2017 and $11 per hour beginning January 2018. With adoption of the City’s Minimum Wage Ordinance No. 2151, this wage in Cupertino is now scheduled to increase to $12 per hour beginning January 2017, $13.50 per hour beginning January 2018 and $15.00 per hour beginning January 2019. Per the terms of the awarded contract, IMPEC Group, Inc. may request a change in 288 compensation due to unforeseen factors not caused by their negligence. The scheduled increases in minimum wage applicable to employers within Cupertino qualifies for a change in Contractor compensation. The Contractor has submitted a request for increased compensation of $35,000 for the time period of January 1 through June 30, 2017 due to the increase in minimum wage to $12 per hour. For the remaining term of the three year agreement (July 1, 2017 through June 30, 2018), the contractor has requested an additional $93,000 annually. The current contract provides for a consumer price index (CPI) change in compensation beginning the third year of the agreement. The $93,000 amount includes increased compensation for the minimum wage increasing to $13.50 on January 1, 2018 and for a 3% CPI adjustment. Per the 1996 lease agreement between the City and County of Santa Clara, the City is reimbursed for all janitorial costs associated with the library. Staff has advised the County that these costs are anticipated to increase. In FY16/17 the reimbursement amount will be approximately $193,000. Staff has evaluated this request with the observed Contractor staffing levels at each facility and recommends that an amendment to the contract be authorized to increase Contractor compensation for the remaining term of contract through June 2018. Similar to the original contract, the amendment provides the City the option to extend the contract on a year to year basis beyond 2018. Sustainability Impact No sustainability impact. Fiscal Impact In the FY16/17 operating budget, approximately $593,000 was budgeted for janitorial services. With the increase recommended in calendar year 2017, an additional $35,000 is needed in the various FY16/17 operating accounts that fund janitorial services. The FY17/18 operating budget will include a request to fund janitorial services for approximately $720,373. _____________________________________ Prepared by: Roger Lee, Assistant Director of Public Works Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: 289 A - Draft Amendment B – Draft Resolution to amend FY 16/17 Operating Budget 290 FIRST AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF CUPERTINO AND IMPEC GROUP INC. FOR 2015 JANITORIAL SERVICES (PROJECT NO. 2015-23) This First Amendment to the Contract between the City of Cupertino and IMPEC Group, Inc. for reference dated January 24, 2017, is by and between the CITY OF CUPERTINO, a municipal corporation (hereinafter "City") and IMPEC Group, Inc. whose address 3350 Scott Blvd. Bldg. 8, Santa Clara, CA 95054, and is made with reference to the following: RECITALS: A. On June 16, 2015 a contract was entered into by and between City and Contractor (hereinafter "Contract") for routine janitorial services for various City facilities. B. City and Contractor desire to modify the Contract on the terms and conditions set forth herein. NOW, THEREFORE, it is mutually agreed by and between and undersigned parties as follows: 1. Article 3, paragraph 3.1, of the Contract, “Contract Time” is modified to read as follows: The Contract Time will commence to run on July 01, 2015. City may give a Notice to Proceed at any time within 30 Days after the Notice of Award. Contractor shall not do any Work at the Site prior to the date on which the Contract Time commences to run. The term of this contract shall be three (3) years from the start date of the contract. The City shall retain the option to extend the term of the contract on a year-to-year basis not exceeding two (2) years from the expiration date of the original term, for a possible total of five (5) years. Any such renewal after the first three years shall be accomplished by the City providing a written notice of renewal to the Contractor at least 30 days prior to expiration of the term. Any such renewal shall contain the same provisions as the original agreement, including an increase or decrease in material compensation paid to the Contractor based only on the San Francisco Consumer Price Index (CPI-U) for June 2018 as compared to June 2017 and up to $4200 additional per month for every $1 increase in minimum wage above $13.50 per hour. 2. Article 4, paragraph 4.1, of the Contract, “Contract Sum” is modified to read as follows: 291 City shall pay Contractor the Contract Sum for completion of Work in accordance with Contract Documents as set forth in the completed Schedule of Bid Prices (Document 00400) for all Work completed in calendar year 2016 (Attachment 1, page 1&2). Compensation to Contractor for completion of Work performed during the periods below in accordance with Contract Documents and the minimum wage requirement shall be as follows: a. From January 1, 2017 to June 30, 2017 (6 months) - $331,170.96 (Attachment 2, page 3); b. From July 1, 2017 to December 31, 2017 (six months) - $341,122.14 (Attachment 3, page 4); c. From January 1, 2018 to June 30, 2018 (six months) - $379,250.96 (Attachment 4, page 5). The time periods of July 1, 2017 through June 30, 2018 include a fixed price adjustment of 3%. No additional price adjustment will occur as a result of a change the San Francisco CPI-U through June 30, 2018. 3. The above changes were substantially due to Ordinance No. 2151, enacted by the Cupertino City Council on October 4, 2016, wherein the minimum wage was increased from $10.50/hour to $12.00/hour beginning on January 1, 2017, and increasing again to $13.50/hour on January 1, 2018. 4. Except as expressly modified herein, all other terms and covenants set forth in the Contract shall remain the same and shall be in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this modification of Contract to be executed. CONTRACTOR CITY OF CUPERTINO A Municipal Corporation By____________________ By: ___________________ Title __________________ Title __________________ Date __________________ RECOMMENDED FOR APPROVAL: By: _________________ Title ________________ APPROVED AS TO FORM: ____________________ 292 City Attorney ATTEST: ____________________ City Clerk 293 Attachment 1 Contract Price July 2015 – December 2016 (Per Contractor submitted Schedule of Bid Prices Document 00400) Page 1 of 5 294 Attachment 1 Contract Price July 2015 – December 2016 (Per Contractor submitted Schedule of Bid Prices Document 00400) continued Total Annual Amount: $592,308.75 (monthly $49,359.06) Page 2 of 5 295 Attachment 2: Contract Price January 2017 – June 2017 (inclusive of $12.00/hour minimum wage) ITEM DESCRIPTION UNIT EST QTY Unit Price/Mon. Total/6mon. JANUARY 2017 – JUNE 2017 JANITORIAL SERVICES 1 Street Side containers $ 6 Months $_798.04_/Mon. $_4,788.24_____ 2 Blackberry Farm/Retreat Building $ 6 Months $_3,192.17_ /Mon. $_19,153.02____ 3 City Hall Building $ 6 Months $_4,921.26_/Mo n. $_29,527.56____ _ 4 Community Hall Building $ 6 Months $_1,596.08___/ Mon. $_9,576.48____ 5 Creekside Park Building $ 6 Months $_798.04_/Mon. $_4,788.24_____ 6 McClellan Ranch Environmental Education Center $ 6 Months $_1,995.10____/ Mon. $_11,970.60____ 7 Golf Course Restrooms $ 6 Months $_266.02__/Mon . $_1,596.12_____ 8 Library Building $ 6 Months $_9,576.50___/ Mon. $_57,459.00__. 9 McClellan Ranch Building & Museum $ 6 Months $_266.02_/Mon. $_1,596.12_____ 10 Monta Vista Recreation & Pre School Buildings $ 6 Months $_2,261.12___/ Mon. $_13,566.72____ 11 Park Restrooms $ 6 Months $_1,995.10_____ /Mon. $_11,970.60____ 12 Portal Park Building $ 6 Months $_266.02_/Mon. $_1,596.12_____ 13 Quinlan Community Center/History Museum Building $ 6 Months $_7.182.37_____ /Mon. $_43,094.22____ 14 Senior Center Building $ 6 Months $_3,724.20____/ Mon. $_22,345.20____ 15 Service Center Building $ 6 Months $_1,862.10_____ /Mon. $_11,172.60____ 16 Sports Center Building $ 6 Months $_5,852.31____/ Mon. $_35,113.86____ 17 Wilson Park Building $ 6 Months $_931.04_/Mon. $_5,586.24____ 18 M-F Day Porter $ 6 Months $_5,320.28_____ _/Mon. $_31,921.68____ 19 Call Back For Unscheduled or Emergency Cleaning (2 hours per month) $ 6 Months $_78.28__/Mon. $_469.68______ 20 Unscheduled Carpet Cleaning (50 square feet per month) $ 6 Months $_223.65_/Mon. $_1,341.90_____ TOTAL/ YEAR:$_____________________ Alt. No. 1 Sa-Su Day Porter $ 6 Months $_2,089.46_____ /Mon. $_12,536.76____ 6 Month Total Amount: $331,170.96 (monthly $55,195.16) Page 3 of 5 296 Attachment 3: Contract Price July 2017 – December 2017 (inclusive of $12.00/hour minimum wage and 3% CPI increase) ITEM DESCRIPTION UNIT EST QTY Unit Price/Mon. Total/6mon. JULY 2017 – DECEMBER 2017 JANITORIAL SERVICES 1 Street Side containers $ 6 Months $_822.02_/Mon. $_4,932.12_____ 2 Blackberry Farm/Retreat Building $ 6 Months $_3,288.09_ /Mon. $_19,728.54____ 3 City Hall Building $ 6 Months $_5,069.14_/Mo n. $_30,414.84____ _ 4 Community Hall Building $ 6 Months $_1,644.04___/ Mon. $_9,864.24____ 5 Creekside Park Building $ 6 Months $_822.02_/Mon. $_4,932.12_____ 6 McClellan Ranch Environmental Education Center $ 6 Months $_2,055.05____/ Mon. $_12,330.30____ 7 Golf Course Restrooms $ 6 Months $_274.01__/Mon . $_1,644.06_____ 8 Library Building $ 6 Months $_9,864.26___/ Mon. $_59,185.56__. 9 McClellan Ranch Building & Museum $ 6 Months $_274.01_/Mon. $_1,644.06_____ 10 Monta Vista Recreation & Pre School Buildings $ 6 Months $_2,329.06___/ Mon. $_13,974.36____ 11 Park Restrooms $ 6 Months $_2,055.05_____ /Mon. $_12,330.03____ 12 Portal Park Building $ 6 Months $_274.01_/Mon. $_1,644.06_____ 13 Quinlan Community Center/History Museum Building $ 6 Months $_7,398.19_____ /Mon. $_44,389.14____ 14 Senior Center Building $ 6 Months $_3,836.11____/ Mon. $_23,016.66____ 15 Service Center Building $ 6 Months $_1,918.05_____ /Mon. $_11,508.83____ 16 Sports Center Building $ 6 Months $_6,028.16____/ Mon. $_36,168.96____ 17 Wilson Park Building $ 6 Months $_959.02_/Mon. $_5,754.12____ 18 M-F Day Porter $ 6 Months $_5,480.15_____ _/Mon. $_32,880.09____ 19 Call Back For Unscheduled or Emergency Cleaning (2 hours per month) $ 6 Months $_80.63__/Mon. $_483.78______ 20 Unscheduled Carpet Cleaning (50 square feet per month) $ 6 Months $_230.37_/Mon. $_1,382.22_____ TOTAL/ YEAR:$_____________________ Alt. No. 1 Sa-Su Day Porter $ 6 Months $_2,152.25_____ /Mon. $_12,913.50____ 6 Months Total Amount: $341,122.14 (monthly $56,853.69) Page 4 of 5 297 Attachment 4: Contract price from January 2018- June 2018 (inclusive of $13.50/hour minimum wage and no additional CPI increase) ITEM DESCRIPTION UNIT EST QTY Unit Price/Mon. Total/6mon. JANUARY 2018 – JUNE 2018 JANITORIAL SERVICES 1 Street Side containers $ 6 Months $_913.90_/Mon. $_5,483.40_____ 2 Blackberry Farm/Retreat Building $ 6 Months $_3,655.61_____ /Mon. $_21,933.66____ 3 City Hall Building $ 6 Months $_5,635.74_____ _/Mon. $_33,814.44____ _______ 4 Community Hall Building $ 6 Months $_1,827.80_____ ______/Mon. $_10,966.83____ _______ 5 Creekside Park Building $ 6 Months $_913.90_/Mon. $_5,483.41_____ 6 McClellan Ranch Environmental Education Center $ 6 Months $_2,284.76_____ ______/Mon. $_13,708.54____ _______ 7 Golf Course Restrooms $ 6 Months $_304.64_/Mon. $_1,827.83_____ 8 Library Building $ 6 Months $_10,966.83____ _____/Mon. $_65,800.97____ _______. 9 McClellan Ranch Building & Museum $ 6 Months $_304.64_/Mon. $_1,827.83____ 10 Monta Vista Recreation & Pre School Buildings $ 6 Months $_2,589.39_____ ______/Mon. $_15,536.37____ _______ 11 Park Restrooms $ 6 Months $_2,284.76_____ ______/Mon. $_13,708.54____ _______ 12 Portal Park Building $ 6 Months $_304.64_/Mon. $_1,827.83_____ 13 Quinlan Community Center/History Museum Building $ 6 Months $_8,255.12_____ ______/Mon. $_49,350.73____ _______ 14 Senior Center Building $ 6 Months $_4,264.89_____ ______/Mon. $_25,589.32____ _______ 15 Service Center Building $ 6 Months $_2,132.44_____ ______/Mon. $_12,794.66____ _______ 16 Sports Center Building $ 6 Months $_6,701.96_____ ______/Mon. $_40,211.73____ _______ 17 Wilson Park Building $ 6 Months $_1,066.22_____ ______/Mon. $_6,397.29_____ ______ 18 M-F Day Porter $ 6 Months $_6,092.69_____ ______/Mon. $_36,556.15____ _______ 19 Call Back For Unscheduled or Emergency Cleaning (2 hours per month) $ 6 Months $_89.64_______ ____/Mon. $_537.85______ _____ 20 Unscheduled Carpet Cleaning (50 square feet per month) $ 6 Months $_256.12______ _____/Mon. $_1,536.70_____ ______ TOTAL/ YEAR:$_____________________ Alt. No. 1 Sa-Su Day Porter $ 6 Months $_2,392.81_____ ______/Mon. $_14,356.87____ _______ 6 Month Total Amount: $379,250.96 (monthly $63,208.49) Page 5 of 5 298 1 RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING A CONTRACT AMENDMENT WITH IMPEC GROUP, INC. FOR JANITORIAL SERVICES AND AUTHORIZING AN AMENDMENT TO FY16/17 ANNUAL OPERATING BUDGET TO APPROPRIATE AN ADDITIONAL $35,000 TO PUBLIC WORKS FOR THIS PURPOSE WHEREAS, the City of Cupertino (City), a municipal corporation and general law city duly organized and existing under and pursuant to the laws of the State of California (City) is authorized to enter contracts on its behalf and for the benefit of the City; and WHEREAS, the City completed the formal bidding process for the 2015 Contractual Janitorial Services in June 2015; and WHEREAS, IMPEC GROUP, INC. was selected as the lowest responsible bidder; and WHEREAS, the additional reasons supporting the entrance of the City into the Contract for Janitorial Services is set forth in detail in the staff reports and hearings for June 16, 2015 Council meetings and are incorporated herein by reference; and WHEREAS, on October 4, 2016 the City adopted Ordinance No. 16-2151 City’s Minimum Wage Ordinance, effectively increasing the minimum wage to be paid to certain employees of IMPEC GROUP, INC.; and WHEREAS, the consideration by the City Council of the adoption of this Resolution has been duly noticed pursuant to applicable laws and Council provided members of the public an opportunity to comment and be heard and considered all testimony and evidence in connection with the adoption of this Resolution; and WHEREAS, the City Council determines that the adoption of this Resolution is in the public interest. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY FIND, DETERMINE, RESOLVE, AND ORDER AS FOLLOWS: Section 1. Recitals. The City Council does herby find, determine, and resolve that the foregoing recitals are true and correct. 299 2 Section 2. Approval and Authorization. The City Council does further resolve that: a. The City Manager is authorized to negotiate and execute the contract amendment with IMPEC Group, Inc., in substantially similar form as presented to Council on January 24, 2017, and is further authorized to negotiate and execute options within the Agreement, subject to future appropriations; and b. The Fiscal Year 2016/2017 Annual Operating Budget is amended to include an increase of $35,000 for the additional costs above the $592,308.75 amount as previously budgeted. Section 3: Effective date: This Resolution is effective immediately upon adoption. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 24th day of January 2017, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: ________________________________ Grace Schmidt, City Clerk Savita Vaidhyanathan, Mayor 300 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2240 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:1/3/2017 City Council On agenda:Final action:1/24/2017 Title:Subject: Application for Alcohol Beverage License for Gogigo, Inc. (dba Gogigo Korean BBQ), 10815 N. Wolfe Road, Bldg A Suite A3 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Application Action ByDate Action ResultVer. City Council1/24/20171 Subject:ApplicationforAlcoholBeverageLicenseforGogigo,Inc.(dbaGogigoKorean BBQ), 10815 N. Wolfe Road, Bldg A Suite A3 RecommendapprovaltotheCaliforniaDepartmentofAlcoholicBeverageControlofthe applicationforAlcoholBeverageLicenseforGogigo,Inc(dbaGogigoKoreanBBQ),10815 N. Wolfe Road, Bldg A Suite A3 CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™301 CITY COUNCIL STAFF REPORT Meeting: January 24, 2017 Subject Application for Alcoholic Beverage License for Gogigo Korean BBQ, 10815 N. Wolfe Road, Building A, Suite A3 Recommended Action Recommend approval to the California Department of Alcoholic Beverage Control of the Application for Alcoholic Beverage License for Gogigo Korean BBQ, 10815 N. Wolfe Road, Building A, Suite A3. Description Name of Business: Gogigo Korean BBQ Location: 10815 N. Wolfe Road, Building A, Suite A3 Type of Business: Restaurant Type of License: 41 – On-Sale Beer & Wine – Eating Place (Restaurant) Reason for Application: Annual Fees, Original Fees Discussion There are no zoning or use permit restrictions which would prohibit the sale of alcohol as proposed and staff has no objection to the issuance of this license. License Type 41 authorizes the sale of beer and wine for consumption on or off the premises where sold. Sustainability Impact None Fiscal Impact None _____________________________________ Prepared by: Jeffrey Tsumura, Assistant Planner, Planning Department Reviewed by: Benjamin Fu, Assistant Director of Community Development; Aarti Shrivastava, Assistant City Manager - Community Development and Strategic Planning Approved for Submission by: David Brandt, City Manager Attachment: A - Application COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 www.cupertino.org 302 303 304 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2243 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:1/4/2017 City Council On agenda:Final action:1/24/2017 Title:Subject: 2017 CDBG City-Wide Curb Ramp Installation Project, Project No. 2017-109 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Bid Summary B - Draft Contract Action ByDate Action ResultVer. City Council1/24/20171 Subject: 2017 CDBG City-Wide Curb Ramp Installation Project, Project No. 2017-109 AuthorizetheCityManagertoawardandexecuteacontractwithJJRConstruction,Inc.,inthe amount of $233,100 and approve a construction contingency of $11,900, for a total of $235,000 CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™305 PUBLIC WORKS DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: January 24, 2017 Subject 2017 CDBG City-Wide Curb Ramp Installation Project, Project No. 2017-109 Recommended Action Authorize the City Manager to award and execute a contract with JJR Construction, Inc., in the amount of $223,100 and approve a construction contingency of $11,900, for a total of $235,000. Discussion On December 20, 2016, the City received four bids for the 2017 CDBG City-Wide Curb Ramp Installation Project. The work will generally consist of installing ADA Curb Ramps at various locations throughout the City. The following is a summary of bids deemed complete: Bidder Bid Amount Engineers Estimate $ 234,953.00 Nor-Cal Concrete $ 311,328.50 Sposeto Engineering, Inc. $ 308,679.00 Spencon Construction, Inc. $ 244,783.50 JJR Construction, Inc. $ 223,100.00 The lowest responsive bid for this project is 5.05% below the engineers estimate and within the total available budget. The engineers estimate for this project was based upon competitively bid unit costs of a similar project awarded this past August. JJR Construction, Inc. has satisfactory completed prior concrete projects for the City. With the scope and quantity of work defined specifically for the City’s CDBG funding application for this project, there is no advantage in rejecting and rebidding this work. Additionally, each week of favorable weather is critical to meet the overall construction schedule. This project will start as early as this month. Sustainability Impact No sustainability impact. 306 Fiscal Impact Award of the project will result in a fiscal impact of up to $235,000. Sufficient funds have been budgeted and are available from account numbers 260-72-709 600-623 (CDBG Grant) and 270-82-821 900-921 (Concrete Work). _____________________________________ Prepared by: David Stillman, Senior Civil Engineer Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: A – Bid Summary B - Draft Contract 307 20 1 7  CD B G  Ci t y ‐Wi d e  Cu r b  Ra m p  In s t a l l a t i o n  Pr o j e c t Pr o j e c t  No :  20 1 7 ‐10 9 Bi d  Op e n i n g  Da t e :  De c e m b e r  20 ,  20 1 7                                                                                                               BI D  RE S U L T S UN I T  CO S T A M O U N T U N I T  CO S T A M O U N T U N I T  CO S T A M O U N T U N I T  COSTAMOUNT De s c r i p t i o n Un i t Q t y 1 Re m o v e a n d R e p l a c e S i d e w a l k ( 1 - 1 9 ) S. F . 14 0 0 $1 1 . 0 0 $ 1 5 , 4 0 0 . 0 0 $ 1 7 . 0 0 $ 2 3 , 8 0 0 . 0 0 $ 1 3 . 0 0 $ 1 8 , 2 0 0 . 0 0 $ 1 1 . 2 9 $ 1 5 , 8 0 6 . 0 0 2 Re m o v e a n d R e p l a c e C u r b & G u t t e r ( 1 - 16 T y p e A 2 - 6 o r T y p e E ) L. F . 60 0 $5 3 . 0 0 $ 3 1 , 8 0 0 . 0 0 $ 8 0 . 0 0 $ 4 8 , 0 0 0 . 0 0 $ 7 5 . 0 0 $ 4 5 , 0 0 0 . 0 0 $ 5 5 . 0 0 $ 3 3 , 0 0 0 . 0 0 3 Re m o v e P a r k S t r i p I m p r o v e m e n t s S. F . 35 0 $4 . 0 0 $ 1 , 4 0 0 . 0 0 $ 7 . 8 0 $ 2 , 7 3 0 . 0 0 $ 7 . 0 0 $ 2 , 4 5 0 . 0 0 $ 4 . 0 0 $ 1 , 4 0 0 . 0 0 4 De p r e s s e d C u r b R a m p ( C a l t r a n s T y p e B) EA 20 $3 , 7 5 0 . 0 0 $ 7 5 , 0 0 0 . 0 0 $ 5 , 3 0 0 . 0 0 $ 1 0 6 , 0 0 0 . 0 0 $ 4 , 9 0 0 . 0 0 $ 9 8 , 0 0 0 . 0 0 $ 4 , 0 0 0 . 0 0 $ 8 0 , 0 0 0 . 0 0 5 De p r e s s e d C u r b R a m p ( C a l t r a n s T y p e C) EA 14 $3 , 3 6 5 . 0 0 $ 4 7 , 1 1 0 . 0 0 $ 5 , 0 0 0 . 0 0 $ 7 0 , 0 0 0 . 0 0 $ 4 , 5 0 0 . 0 0 $ 6 3 , 0 0 0 . 0 0 $ 4 , 0 0 0 . 0 0 $ 5 6 , 0 0 0 . 0 0 6 De p r e s s e d C u r b R a m p ( C a l t r a n s T y p e F) EA 16 $2 , 3 3 5 . 0 0 $ 3 7 , 3 6 0 . 0 0 $ 2 , 1 0 0 . 0 0 $ 3 3 , 6 0 0 . 0 0 4 4 0 0 $ 7 0 , 4 0 0 . 0 0 $ 2 , 8 0 0 . 0 0 $ 4 4 , 8 0 0 . 0 0 7 As p h a l t R e p l a c e m e n t ( 6 " P l a c e m e n t ) TN 50 . 1 $3 0 0 . 0 0 $ 1 5 , 0 3 0 . 0 0 $ 4 9 0 . 0 0 $ 2 4 , 5 4 9 . 0 0 $ 2 8 5 . 0 0 $ 1 4 , 2 7 8 . 5 0 $ 2 7 5 . 0 0 $ 1 3 , 7 7 7 . 5 0 $3 0 8 , 6 7 9 . 0 0 $ 3 1 1 , 3 2 8 . 5 0 $ 2 4 4 , 7 8 3 . 5 0 SPENCON CONSTRUCTION TO T A L B I D $2 2 3 , 1 0 0 . 0 0 JJ R  CO N S T R U C T I O N Sp o s e t o  En g i n e e r i n g No r ‐Ca l  Co n c r e t e = 30 8 DOCUMENT 00520 CONTRACT THIS CONTRACT, dated this ___ day of , 2017, by and between _________________, whose place of business is located at ___________________________ (“Contractor”), and the CITY OF CUPERTINO, a Municipal Corporation of the State of California (“City”) acting under and by virtue of the authority vested in the City by the laws of the State of California. WHEREAS, City, on the ___ day of _____, 2017 awarded to Contractor the following Project: PROJECT NUMBER 2017-109 2017 CDBG CITY-WIDE CURB RAMPS INSTILLATION NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, Contractor and City agree as follows: Article 1. Work 1.1 Contractor shall complete all Work specified in the Contract Documents, in accordance with the Specifications, Drawings, and all other terms and conditions of the Contract Documents. Article 2. Agency and Notices to City 2.1 City has designated Roger Lee, Assistant Director of Public Works, to act as City’s Authorized Representative(s), who will represent City in performing City’s duties and responsibilities and exercising City’s rights and authorities in Contract Documents. City may change the individual(s) acting as City’s Authorized Representative(s), or delegate one or more specific functions to one or more specific City’s Representatives, including without limitation engineering, architectural, inspection and general administrative functions, at any time with notice and without liability to Contractor. Each City’s Representative is the beneficiary of all Contractor obligations to City, including without limitation, all releases and indemnities. 2.2 All notices or demands to City under the Contract Documents shall be to City’s Authorized Representative at: 10300 Torre Avenue, Cupertino, California 95014 or to such other person(s) and address (es) as City shall provide to Contractor. Article 3. Contract Time and Liquidated Damages 3.1 Contract Time. The Contract Time will commence to run on the date indicated in the Notice to Proceed. City may give a Notice to Proceed at any time within 30 Days after the Notice of Award. Contractor shall not do any Work at the Site prior to the date on which the Contract Time commences to run. Contractor shall achieve Final Completion of the entire Work and be ready for Final Payment in accordance with Section 00700 (General Provisions) by June 30, 2017 as provided in Document 00700 (General Provisions) 3.2 Liquidated Damages. City and Contractor recognize that time is of the essence of this Contract and that City will suffer financial loss in the form of contract administration expenses (such as project management and consultant expenses), if all or any part of the Work is not completed within the times specified above, plus any extensions thereof allowed in 309 accordance with the Contract Documents. Consistent with Document 00700 (General Provisions), Contractor and City agree that because of the nature of the Project, it would be impractical or extremely difficult to fix the amount of actual damages incurred by City because of a delay in completion of all or any part of the Work. Accordingly, City and Contractor agree that as liquidated damages for delay Contractor shall pay City: 3.2.1 $500 for each Calendar Day that expires after the time specified herein for Contractor to achieve Final Completion of the entire Work as specified above. 3.2.2 $75 per Calendar Day for failure to remove concrete from a work area within the same calendar week. 3.2.3 $75 per Calendar Day for failure to replace asphalt to finish grade within 30 calendar days. Liquidated damages shall apply cumulatively and, except as provided below, shall be presumed to be the damages suffered by City resulting from delay in completion of the Work. 3.3 Liquidated damages for delay shall only cover administrative, overhead, interest on bonds, and general loss of public use damages suffered by City as a result of delay. Liquidated damages shall not cover the cost of completion of the Work, damages resulting from defective Work, lost revenues or costs of substitute facilities, or damages suffered by others who then seek to recover their damages from City (for example, delay claims of other contractors, subcontractors, tenants, or other third-parties), and defense costs thereof. Article 4. Contract Sum 4.1 City shall pay Contractor the Contract Sum for completion of Work in accordance with Contract Documents as set forth in Contractor’s Bid, attached hereto: See Exhibit “A” attached Article 5. Contractor’s Representations In order to induce City to enter into this Contract, Contractor makes the following representations and warranties: 5.1 Contractor has visited the Site and has examined thoroughly and understood the nature and extent of th e Contract Documents, Work, Site, locality, actual conditions, as-built conditions, and all local conditions, and federal, state and local laws and regulations that in any manner may affect cost, progress, performance or furnishing of Work or which relate to any aspect of the means, methods, techniques, sequences or procedures of construction to be employed by Contractor and safety precautions and programs incident thereto. 5.2 Contractor has examined thoroughly and understood all reports of exploration and tests of subsurface conditions, as-built drawings, drawings, products specifications or reports, available for Bidding purposes, of physical conditions, including Underground Facilities, or which may appear in the Drawings. Contractor accepts the determination set forth in these Documents and Document 00700 (General Provisions) of the limited extent of the information contained in such materials upon which Contractor may be entitled to rely. Contractor agrees that except for the information so identified, Contractor does not and shall not rely on any other information contained in such reports and drawings. 5.3 Contractor has conducted or obtained and has understood all such examinations, investigations, explorations, tests, reports and studies (in addition to or to supplement those referred to in Section 5.2 of this Document 00520) that pertain to the subsurface conditions, as-built conditions, underground facilities, and all other physical conditions at or contiguous to the Site or otherwise that may affect the cost, progress, performance or furnishing of Work, as Contractor considers necessary for the performance or furnishing of Work at the Contract Sum, within the Contract Time and in accordance with the other terms and conditions of the Contract Documents, including specifically the provisions of Document 00700 (General Provisions); and no additional examinations, investigations, explorations, tests, reports, studies or similar information or data are or will be required by Contractor for such purposes. 5.4 Contractor has correlated its knowledge and the results of all such observations, examinations, investigations, explorations, tests, reports and studies with the terms and conditions of the Contract Documents. 310 5.5 Contractor has given City prompt written notice of all conflicts, errors, ambiguities, or discrepancies that it has discovered in or among the Contract Documents and as-built drawings and actual conditions and the written resolution thereof through Addenda issued by City is acceptable to Contractor. 5.6 Contractor is duly organized, existing and in good standing under applicable state law, and is duly qualified to conduct business in the State of California. 5.7 Contractor has duly authorized the execution, delivery and performance of this Contract, the other Contract Documents and the Work to be performed herein. The Contract Documents do not violate or create a default under any instrument, contract, order or decree binding on Contractor. 5.8 Contractor has listed Subcontractors pursuant to the Subcontractor Listing Law, California Public Contracting Code §4100 et seq. in document 00340 (Subcontractors List) Article 6. Contract Documents 6.1 Contract Documents consist of the following documents, including all changes, addenda, and modifications thereto: Document 00002 Signature Page Document 00003 Project Directory Document 00100 Advertisement For Bids Document 00200 Instructions to Bidders Document 00210 Indemnity and Release Agreement Document 00400 Bid Form Document 00411 Bond Accompanying Bid Document 00430 Subcontractors List Document 00450 Statement of Qualifications Document 00481 Non-Collusion Affidavit Document 00482 Bidder Certifications Document 00520 Contract Document 00530 Insurance Forms Document 00610 Construction Performance Bond Document 00620 Construction Labor and Material Payment Bond Document 00630 Guaranty Document 00650 Agreement and Release of Any and All Claims Document 00660 Substitution Request Form Document 00700 General Conditions Document 00800 Special Conditions Document 00820 Traffic Control Requirements Document 00821 Insurance Document 00822 Apprenticeship Program Document 01010 Technical Specifications Addenda(s) 6.2 There are no Contract Documents other than those listed in this Document 00520, Article 6. The Contract Documents may only be amended, modified or supplemented as provided in Document 00700 (General Provisions). Article 7. Miscellaneous 7.1 Terms used in this Contract are defined in Document 00700 (General Provisions) and will have the meaning indicated therein. 311 7.2 It is understood and agreed that in no instance are the persons signing this Contract for or on behalf of City or acting as an employee, agent, or representative of City, liable on this Contract or any of the Contract Documents, or upon any warranty of authority, or otherwise, and it is further understood and agreed that liability of the City is limited and confined to such liability as authorized or imposed by the Contract Documents or applicable law. 7.3 Contractor shall not assign any portion of the Contract Documents, and may subcontract portions of the Contract Documents only in compliance with the Subcontractor Listing Law, California Public Contracting Code §4100 et seq. 7.4 The Contract Sum includes all allowances (if any). 7.5 In entering into a public works contract or a subcontract to supply goods, services or materials pursuant to a public works contract, Contractor or Subcontractor offers and agrees to assign to the awarding body all rights, title and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. §15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time City tenders final payment to Contractor, without further acknowledgment by the parties. 7.6 Copies of the general prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Contract, as determined by Director of the State of California Department of Industrial Relations, are deemed included in the Contract Documents and on file at City’s office, or m ay be obtained of the State of California web site http://www.dir.ca.gov/DLSR/PWD/Northern.html and shall be made available to any interested party on request. Pursuant to Section 1861 of the Labor Code, Contractor represents that it is aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self -insurance in accordance with the provisions of that Code, and Contractor shall comply with such provisions before commencing the performance of the Work of the Contract Documents. 7.7 Should any part, term or provision of this Contract or any of the Contract Documents, or any document required herein or therein to be executed or delivered, be declared invalid, void or unenforceable, all remaining parts, terms and provisions shall remain in full force and effect and shall in no way be invalidated, impaired or affected thereby. If the provisions of any law causing such invalidity, illegality or unenforceability may b e waived, they are hereby waived to the end that this Contract and the Contract Documents may be deemed valid and binding contracts, enforceable in accordance with their terms to the greatest extent permitted by applicable law. In the event any provision not otherwise included in the Contract Documents is required to be included by any applicable law, that provision is deemed included herein by this reference(or, if such provision is required to be included in any particular portion of the Contract Documents, that provision is deemed included in that portion). 7.8 This Contract and the Contract Documents shall be deemed to have been entered into in the County of Santa Clara, State of California, and governed in all respects by California law (excluding choice of law rules). The exclusive venue for all disputes or litigation hereunder shall be in Santa Clara County. Both parties hereby waive their rights under California Code of Civil Procedure Section 394 to file a motion to transfer any action or proceeding arising out of the Contract Documents to another venue. Contractor accepts the Claims Procedure in Document 00700, Article 12, established under the California Government Code, Title 1, Division 3.6, Part 3, Chapter 5. 312 IN WITNESS WHEREOF the parties have executed this Contract in triplicate the day and year first above written. 2017 CDBG CITY-WIDE CURB RAMPS INSTILLATION CITY: CONTRACTOR: CITY OF CUPERTINO, a Municipal Corporation of the State of California By: [Signature] Attest: [Please print name here] City Clerk: Grace Schmidt Approved as to form by City Attorney: Title: ______________________________________________ [If Corporation: Chairman , President, or Vice President] City Attorney: Randolph Hom By: I hereby certify, under penalty of perjury, that Timm Borden, Director of Public Works of the City of Cupertino was duly authorized to execute this document. [Signature] [Please print name here] Title: [If Corporation: Secretary, Assistant Secretary, Chief Financial Officer, or Assistant Treasurer] Dated: _____________________________ David Brandt, City Manager of the City of Cupertino, a Municipal Corporation of the State of California ________________________________________________ State Contractor’s License No. Classification ________________________________________________ Expiration Date Designated Representative: Taxpayer ID No._________________________________ Name: David Stillman Name: Title: Senior Title: Address: 10300 Torre Ave., Cupertino, CA 95014 Address: Phone: 408-777-3249 Phone: Facsimile: 408-777-3354 Facsimile: AMOUNT: ACCOUNT NUMBER: FILE NO.: NOTARY ACKNOLEDGEMENT IS REQUIRED. IF A CORPORATION, CORPORATE SEAL AND CORPORATE NOTARY ACKNOWLEDEMENT AND FEDERAL TAX ID ARE REQUIRED. IF NOT A CORPORATION SOCIAL SECURITY NO. IS REQUIRED END OF DOCUMENT 313 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2227 Name: Status:Type:Reports by Council and Staff Agenda Ready File created:In control:12/13/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: Lehigh Cement Plant Noise Monitoring report Sponsors: Indexes: Code sections: Attachments:Staff Report A - Lehigh Cement Plant Noise Monitoring Report dated November 29, 2016 Action ByDate Action ResultVer. City Council1/24/20171 Subject: Lehigh Cement Plant Noise Monitoring report Receive the Lehigh Cement Plant Noise Monitoring report. No action is required CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™314 1 PUBLIC WORKS DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: January 24, 2017 Subject Lehigh Cement Plant Noise Monitoring report. Recommended Action Receive the report. No action is required. Discussion The Lehigh Cement Plant (facility) is located off of Stevens Creek Boulevard in the western hillsides of Santa Clara County, west of the City of Cupertino. The facility is not located in the City of Cupertino and the City cannot currently impose any operational conditions on the facility. The City does maintain an active interest in operations, particularly as they may impact health and safety within the City. At prior Council meetings, public comment from residents was received regarding excessive noise reportedly emanating from the facility. As a result of these comments, staff was directed by Council to study the potential issue. In April, 2016 the City retained CSDA Design Group (consultant) to conduct an acoustical noise monitoring study (study) within the City at locations most likely to be affected by facility operations. The study included the positioning of two continuous noise measurement devices that recorded all audio continuously for 24 hours a day for a one month time period. The measurements started October 3, 2016, and concluded on October 28, 2016. Staff did not contact or coordinate with the operators of the facility regarding any aspect of the study. Staff and the consultant coordinated with the enforcement agency (County of Santa Clara – Department of Environmental Health (DEH)) and with concerned residents to determine two locations to install the noise measurement devices. The two locations selected were reported by residents as being particularly loud and by DEH as locations with optimal acoustics to determine if DEH noise standards were being exceeded. Both locations were in the backyards of homeowners engaged in the process and willing to 315 2 maintain a written log of peak noise they may observe. The goal of the study was to determine if either City or DEH noise standards are being exceeded and if so, were there any trends that emerged which would assist DEH in future investigation and enforcement. Two evening community meetings were held, one on July 13th to solicit additional input for the study and again on December 7th to receive input on draft study findings. The findings of the study are presented within the report titled “Lehigh Cement Plant Noise Monitoring Report” (Attachment A). DEH is in receipt of the report and has stated that report content will assist them in their ongoing regulation of the facility. During the one month study time period, facility noise levels did not exceed either DEH or City noise standards. No additional noise monitoring by the City is scheduled. _____________________________________ Prepared by: Roger Lee, Assistant Director of Public Works Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: A – Lehigh Cement Plant Noise Monitoring Report dated November 29, 2016 316 CITY OF CUPERTINO PUBLIC WORKS DEPARTMENT November 29, 2016 LEHIGH CEMENT PLANT NOISE MONITORING REPORT 317 Lehigh Cement Plant Noise Monitoring Report November 29, 2016 Prepared for: Alex Wykoff Environmental Programs Division Specialist City of Cupertino Public Works Department Prepared by: Randy Waldeck, PE Greg Baker CSDA Design Group 475 Sansome Street, Suite 800 San Francisco, CA 94111 CSDA Project No. 1626.01 318 Lehigh Cement Plant – Noise Monitoring Report November 29, 2016 CSDA Project No. 1626.01 Page 2 of 11 Table of Contents Section Page 1.0 Executive Summary ........................................................................................................................... 3 2.0 Project Description ............................................................................................................................ 3 3.0 Acoustical Criteria and Measurement Locations .............................................................................. 3 4.0 Observations ..................................................................................................................................... 6 4.1 Weather ................................................................................................................................ 6 4.2 General Noise Conditions ..................................................................................................... 6 5.0 Data Analysis Methodology .............................................................................................................. 6 6.0 Results ............................................................................................................................................... 6 6.1 10160 Firwood Drive ............................................................................................................. 7 6.1.1 Notes ....................................................................................................................... 7 6.1.2 Observations............................................................................................................ 7 6.1.3 Measured Levels ...................................................................................................... 7 6.2 23022 Voss Avenue ............................................................................................................... 8 6.2.1 Notes ....................................................................................................................... 8 6.2.2 Observations............................................................................................................ 8 6.2.3 Measured Levels ...................................................................................................... 8 6.3 Time History Graphs .............................................................................................................. 9 6.3.1 October 3-4.............................................................................................................. 9 6.3.2 October 11-12 ....................................................................................................... 10 List of Tables Table Page Table 1 – Equipment Noise and Vibration Levels .......................................... Error! Bookmark not defined. List of Figures Figure Page Figure 1 – ASHRAE Building Vibration Standards ........................................... Error! Bookmark not defined. 319 Lehigh Cement Plant – Noise Monitoring Report November 29, 2016 CSDA Project No. 1626.01 Page 3 of 11 1.0 Executive Summary  Unattended, continuous noise measurements were conducted at two locations to quantify and characterize noise from Lehigh Cement Plant operations due to neighborhood complaints. The measurements started around 2:00 PM on October 3, 2016, and concluded around 10:00 AM on October 28, 2016.  The noise environment during the nighttime hours (10 PM to 7 AM) at the two measurement locations was characterized by crickets, wildlife, periodic aircraft flyovers, traffic on nearby roads, suburban noises (e.g., music from inside the houses, people talking), and occasional cement plant noise.  Cement plant noise was clearly audible for discrete periods on two nights, October 3 and October 11. However, the cement plant noise level during these time periods did not exceed the County noise ordinance. Graphs showing the sound levels and links to the audio files are contained in this report. 2.0 Project Description The Lehigh Cement Plant is located at Permanente Quarry, a limestone quarry in an unincorporated area of Santa Clara County (the County), California. The quarry is a limestone and aggregate mining operation, with a cement plant (the Plant) located just west of Cupertino owned by Lehigh Southwest Cement. The Plant recently undertook noise studies to verify noise reduction modifications of an induced draft fan in June 2015; however, the Plant has received continued complaints due to noises described by nearby residents as “continuous machinery, start-ups and stoppages of conveyer belts, kiln, rock crushers, and many other heavy machinery.” CSDA Design Group was retained to conduct and analyze one month of noise measurements (with audio recordings) to determine if the Plant’s noise levels were above the Santa Clara County noise standards. This report provides a summary of our findings for the continuous noise measurements conducted during October of 2016. 3.0 Acoustical Criteria and Measurement Locations The Santa Clara County Code of Ordinances1 stipulates that single-family residential land shall not be subject to noise levels above 55 dBA during the day and 45 dBA during the night for noise sources with durations of at least 30 minutes in an hour. It further stipulates a penalty of five decibels for noise that “contains a steady, audible tone such as a whine, screech or hum or contains music or speech.” Based on the tonality and character of noise heard in the audio files (discussed later in the report), it is appropriate to use the 5 dBA penalty. Table 3-1 contains the applicable criteria for the survey. 1Santa Clara County Code 2016 § B11-152: https://www.municode.com/library/ca/santa_clara_county/codes/code_of_ordinances?nodeId=TITBRE_DIVB11ENHE_CHVIIIC ONOVI_SB11-152EXNOLI 320 Lehigh Cement Plant – Noise Monitoring Report November 29, 2016 CSDA Project No. 1626.01 Page 4 of 11 Table 3-1: Santa Clara County Code of Ordinances Noise Standards for Noise with Steady, Audible Tones Receiving Land Use Category Time Period Maximum Noise Level (dBA) One- and Two-family Residential 10 PM to 7 AM 40 7 AM to 10 PM 50 Specifically, Section B11-152(a)(2) has the language: (2) No person may operate or cause to be operated any source of sound at any location within the unincorporated territory of the county or allow the creation of any noise on property owned, leased, occupied or otherwise controlled by the person, which causes the noise level when measured on any other property either incorporated or unincorporated, to exceed: a. The noise standard for that land use as specified in table B11-152 for a cumulative period of more than thirty minutes in any hour; or b. The noise standard plus five dB for a cumulative period of more than fifteen minutes in any hour; or c. The noise standard plus ten dB for a cumulative period of more than five minutes in any hour; or d. The noise standard plus fifteen dB for a cumulative period of more than one minute in any hour; or e. The noise standard plus twenty dB or the maximum measured ambient, for any period of time. (3) If the measured ambient level exceeds that permissible within any of the first four noise limit categories above, the allowable noise exposure standard will be increased in five dB increments in each category as appropriate to encompass or reflect the ambient noise level. In the event the ambient noise level exceeds the fifth noise limit category, the maximum allowable noise level under the category will be increased to reflect the maximum ambient noise level. Figure 3-1 depicts the two designated sound monitoring sites and the location of the cement plant. Figure 3-2 shows a typical noise monitor installation. 321 Lehigh Cement Plant – Noise Monitoring Report November 29, 2016 CSDA Project No. 1626.01 Page 5 of 11 Figure 3-1: Noise Monitoring Locations Figure 3-2: Photo of Noise Monitor at Voss Street 23022 Voss Street 10160 Firwood Drive Cement Plant 322 Lehigh Cement Plant – Noise Monitoring Report November 29, 2016 CSDA Project No. 1626.01 Page 6 of 11 4.0 Observations 4.1 Weather From October 3 to 28, 2016, the maximum wind speed was 24 miles per hour (mph), with an average speed of 5 mph; wind noise generally did not affect the measurement (there were a couple night where wind noise did affect the measurements, which we ignored). The temperature ranged from a low of 49F to a high of 88F, while the average was 64F. The humidity ranged from a low of 16% on October 8 to a high of 100% from October 15 to 16, while averaging 64%. It rained from October 14 to 16 for a total of one inch, and again from October 27 to 28 for another total of one inch. The data from the rainy nights was ignored. 4.2 General Noise Conditions Crickets, wildlife, periodic aircraft flyovers, and suburban noises (e.g., music from inside the houses, people talking), were the primary contributors to the ambient nighttime noise environment. Road traffic and background “hum” from the Plant were minor contributors to the overall nighttime noise levels. The specific nature of these noises, as well as those that were above the County’s noise standards, are described in Section 6.0 below. 5.0 Data Analysis Methodology At the start of the monitoring, the City asked residents to log the time and description of any noise heard from the cement plant. At the conclusion of the monitoring period, the City only received a couple logs from the residents, and the only time that the cement plant noise was noted as audible was during the daytime. Unfortunately, the audio recording functionality was only enabled during the nighttime hours so we could not listen to the daytime sounds. In addition, other ambient sources such as traffic noise dominate during the daytime. As a result, the log data was not usable, so we utilized the following analysis methodology. To determine which activity took place at the time the noise standards were exceeded, we compared the time history graphs2 from the field measurements to the noises that dominated when listening to the audio recordings. We then notated the various time history graphs, characterizing the primary and secondary noise sources. The tables presented in Section 6.0 show the results of the analysis. 6.0 Results Ambient noise levels at the Voss Avenue location were generally higher than the Firwood Drive location. We have summarized the results at each measurement location in the following sections. The noise levels in the tables show both the range of measured noise levels (stripping out any short-term, atypical noisy events such as loud motorcycles or sirens),3 as well as an average level (Leq) for the same time period. In Section 6.3, we have presented time history graphs showing the noise level during times when cement plant noise was clearly audible. 2 Time history graph: A graph showing the fluctuating noise level over time. 3 The range of noise levels presented in the table show the range between the L95 (all noise levels except the quietest 5%) and the L10 (all noise levels except the loudest 10%). This effectively strips out atypical quiet noise levels such as periodic lulls in Hwy 280/SR 85 traffic noise and noisy events such as sirens or loud motorcycles. 323 Lehigh Cement Plant – Noise Monitoring Report November 29, 2016 CSDA Project No. 1626.01 Page 7 of 11 6.1 10160 Firwood Drive 6.1.1 Notes The measurement was taken on a tripod six feet above the ground, and more than 10 feet from any reflecting vertical surface. The measurement commenced at 12:00 PM on October 3, 2016, and ended at 10:00 AM on October 28, 2016. The equipment was calibrated immediately before and after the measurement with no significant drift in response. 6.1.2 Observations Typical noises included crickets, road traffic, and aircraft flyovers. Cement plant noise was typically faintly audible during the late night/early morning hours. There were some times when the cement plant noise was clearly audible. These instances are graphed in Section 6.3 of the report and audio links are provided. 6.1.3 Measured Levels Table 6-1: 10160 Firwood Drive – Nighttime Measured Levels (10 PM to 7 AM) Start Date Range (dBA) Leq (dBA) Dominant Noise(s) Start Date Range (dBA) Leq (dBA) Dominant Noise October 3 35 to 46 41 Crickets, cement plant at times October 16 33 to 48 42 Rain October 4 30 to 45 40 Crickets October 17 31 to 45 40 Crickets October 5 35 to 45 42 Crickets October 18 35 to 44 41 Crickets October 6 35 to 44 41 Crickets October 19 33 to 45 43 Crickets October 7 35 to 47 43 Crickets October 20 35 to 44 42 Crickets October 8 33 to 46 42 Crickets October 21 32 to 44 38 Crickets October 9 31 to 45 41 Crickets October 22 29 to 44 37 Crickets October 10 28 to 42 37 Crickets October 23 38 to 49 44 Crickets October 11 27 to 42 36 Crickets October 24 34 to 47 42 Crickets October 12 30 to 43 39 Crickets October 25 33 to 44 40 Crickets October 13 37 to 44 42 Crickets October 26 31 to 41 40 Crickets October 14 30 to 41 37 Crickets October 27 39 to 50 47 Rain October 15 36 to 50 46 Rain For the date where the cement plant is noted as audible, noise from the plant did not exceed the County’s noise ordinance. This is due to the ambient noise level (from crickets) being at or above the cement plant noise level. As per the Ordinance, if the ambient noise level is higher than the noise limits presented in Table 3-1 then the noise limits are raised in 5 dB increments. Please see Section 6.3 which contains graphs showing the time history along with links to the audio files. 324 Lehigh Cement Plant – Noise Monitoring Report November 29, 2016 CSDA Project No. 1626.01 Page 8 of 11 6.2 23022 Voss Avenue 6.2.1 Notes The measurement was taken on a tripod 6 feet above the ground and more than 10 feet from any reflecting vertical surface. The measurement commenced at 2:00 PM on October 3, 2016, and ended at 10:00 AM on October 28, 2016. The equipment was calibrated immediately before and after the measurement with no significant drift in response. 6.2.2 Observations Typical noises included crickets, wildlife (e.g., owls), road traffic, and periodic aircraft flyovers. In general, the cricket noise levels were louder (likely due to the larger amount of open space) than at Firwood Drive. There were some times when the cement plant noise was clearly audible. These instances are graphed in Section 6.3 of the report and audio links are provided. 6.2.3 Measured Levels Table 6-3: Voss Avenue – Nighttime Measured Levels (10 PM to 7 AM) Start Date Range (dBA) Leq (dBA) Dominant Noise (s) Start Date Range (dBA) Leq (dBA) Dominant Noise October 3 32 to 47 45 Crickets, cement plant (minor) at times October 16 32 to 49 42 Rain October 4 31 to 51 43 Crickets October 17 28 to 47 39 Crickets October 5 31 to 50 45 Crickets October 18 33 to 47 43 Crickets October 6 35 to 52 47 Crickets October 19 34 to 47 43 Crickets October 7 33 to 51 47 Crickets October 20 36 to 50 45 Crickets October 8 33 to 53 48 Crickets October 21 30 to 45 40 Crickets October 9 36 to 51 45 Crickets October 22 29 to 40 36 Crickets October 10 30 to 49 44 Crickets October 23 36 to 48 44 Crickets October 11 29 to 50 44 Crickets, cement plant at times October 24 34 to 47 41 Crickets October 12 29 to 46 40 Crickets October 25 33 to 45 41 Crickets October 13 36 to 49 45 Crickets October 26 34 to 42 39 Crickets October 14 30 to 47 42 Crickets October 27 33 to 46 43 Rain October 15 31 to 45 42 Rain For the dates where the cement plant is noted as audible, noise from the plant did not exceed the County’s noise ordinance. This is due to the ambient noise level (from crickets) being at or above the cement plant noise level. As per the Ordinance, if the ambient noise level is higher than the noise limits presented in Table 3-1 then the noise limits are raised in 5 dB increments. Please see Section 6.3 which contains graphs showing the time history along with links to the audio files. 325 Lehigh Cement Plant – Noise Monitoring Report November 29, 2016 CSDA Project No. 1626.01 Page 9 of 11 6.3 Time History Graphs 6.3.1 October 3-4 Note: Blue circle represents time when the cement plant was clearly audible; minute 27-55 of the following audio file: Link to Audio File Firwood Drive, 41.7 crickets, cement plant Cement plant clearly audible Voss Street, 48.2 crickets louder than cement plant Voss Street, 48.6 crickets, cement plant Voss Street, 45.3 crickets and cement plant 25 30 35 40 45 50 55 60 65 70 75 Le q ( d B ) Data Samples Leq 10/3/2016 7:00:00 PM -10/4/2016 10:00:00 AM Firwood Drive Voss Street 326 Lehigh Cement Plant – Noise Monitoring Report November 29, 2016 CSDA Project No. 1626.01 Page 10 of 11 6.3.2 October 11-12 Note: Blue circle represents time when the cement plant was clearly audible; minutes 37 and 40 of the 11:00 PM file have periods of time when crickets stopped and cement plant was clearly audible. Sound level when crickets stop is ~42 dBA. Link to Audio File. Crickets, faint cement plant whine, 49.4 dBA Voss Street, 54.2 dBA airplane Crickets + cement, 49 dBA; cement and distant crickets, 42 dBA Voss Street, 52.1 airplane Voss Street, 48.4 dBA crickets 25 30 35 40 45 50 55 60 65 70 75 Le q ( d B ) Data Samples Leq 10/11/2016 7:00:00 PM -10/12/2016 7:00:00 AM Firwood Drive Voss Street 327 Lehigh Cement Plant – Noise Monitoring Report November 29, 2016 CSDA Project No. 1626.01 Page 11 of 11 This concludes our noise monitoring report for the Lehigh Cement Plant measurements conducted during October of 2016. 328 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2223 Name: Status:Type:Reports by Council and Staff Agenda Ready File created:In control:12/12/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: Report from Valley Transportation Authority (VTA) regarding Next Network Program Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council1/24/20171 Subject:ReportfromValleyTransportationAuthority(VTA)regardingNextNetwork Program Receive Report from Valley Transportation Authority (VTA) regarding Next Network Program CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™329 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1950 Name: Status:Type:Reports by Council and Staff Agenda Ready File created:In control:9/1/2016 City Council On agenda:Final action:1/24/2017 Title:Subject: Report on Committee assignments and general comments Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council1/24/20171 Subject:Report on Committee assignments and general comments Report on Committee assignments and general comments CITY OF CUPERTINO Printed on 1/18/2017Page 1 of 1 powered by Legistar™330