HomeMy WebLinkAbout87-36 - Ratifying 1987 San Joaquin Hills Transportation Agency ProgramRESOLUTION NO. 87-36
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, RATIFYING AND APPROVING
THE 1987 LEGISLATIVE PROGRAM OF THE FOOTHILL AND
EASTER]/SAN JOAOUIN HILLS TRANSPORTATION JOINT
POWERS AGENCY.
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS
FOLLOWS:
THAT, WHEREAS, the City of Costa Mesa is a full voting member of the
Foothill and Eastern/San Joaquin Hills Transportation Joint Powers Agency;
and
WHEREAS, on March 12, 1987, at a regular meeting of the Board of such
Agency, the duly selected representative of this City, together with all
other city and county representatives on such Board, unanimously approved
the 1987 Legislative Program of such Agency described on the attached
Memorandum dated March 4, 1987, as supplemented by the attached undated
Memoranda entitled "Definition of Administrative Expenses" and "Stand-by
User Fee Authority";
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA, HEREBY
RESOLVES that the action of the duly selected representative of this City
in voting to approve the 1987 Legislative Program of the Foothill and
Eastern/San Joaquin Hills Transportation Joint Powers Agency, as part of a
unanimous action of the Board of such Agency at a regular meeting thereof
held on March 12, 1987, hereby is ratified and re -affirmed.
PASSED AND ADOPTED this 18th day of May, 19$x. 1
Mayor of the City of Costa Mesa
ATTEST:
City Clerk of the City of Costa esa
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF (DSTA MESA )
I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City
Council of the City of Costa Mesa, hereby certify that the above and fore-
going Resolution No. 87-36 was duly and regularly passed and adopted by
the said City Council at a regular meeting thereof held on the 18th day of
May, 1987.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal
of the City of Costa Mesa this 19th day of May, 1987.
City Clerk and ex -officio Clerk the
City Council of the City of Cos Mesa
NOSSAMAN. GUTHNER. KNOX & ELLIOTT
ATTACR,1ENr FOR RESOLUTION N0. 87-36
MEMORANDUM
TO: Foothillirn Transportation Corridor Transportation CorridorAgency
gency
San Joaquinuin Hlls
FROM: James E. Erickson
DATE: March 4, 1987
RE: Legislative Program
Your Executive DireeJohn legislation#ton�esolvelves
have prepared drafts of proposed
outstanding questions regarding the authority of the JPAs to
accomplish their purposes.
The attached drafts consist of three bills that
address the following issues:
1. The "Clean -Up" Bill
A. Clarifies that the calendar year
I ezenses authorization includes 19861 as well
administratve p
as the following years.
B. Clarifies that the annual budget
authorization for administrative o
each
r all JPAs
JPA, rather than their indivindivi
now or hereafter formed under such generic legislation.
C. Clarifies that the definition of
"construction" expenses ncludadministration tf design,,
tion
acquisition of right o Y
contracts, actual construction,
and other
truenvironmental,
services
engineering, accounts g,
necessary for such construction. _
D. Clarifies the relationship of Government
Code §50377.5 (i.e., the AB 3314 -Leonard bill amendments
ent Code 484.3
from last year) and provisions of ioveroffees, there6by
and 50029 on the timing of collect on rocess as a
permitting the existing rmitcollection
to continue without
condition of building pe
legal question.
TH1R R.FIRSTTOWER. FLOOR. 445 SOUTH
TOWN CENTFIGUEROA ER DRIVE, SUITEE1230 •COSTA MESA. COS ANGELES. ALIFORNIA ORNIAFORNIA 92626-1"1••((711))6543-3270
CENTSDFRO
94105 -
THIRD IFLOOR, too XTH FLOOR, 1140 A STREET, N.� WASHINGTON. D.C. 20033646" (202)1295 •221.9100 }
SUITE 300, 8080 11TH STREET •SACRAMENTO. CALIFORNIA 95914 • (916) 142-0238
1
NOSSAMAN, CUTHNEK KNOX 8 ELLIOTT
2. The "Preservation of the Program" Bill
A. Provides that no change of organization or
reorganization will impair the prior commitment of
predecessor governmental organizations to the JPA programs.
B. Clarifies LAFCO's current authority to
condition changes of organization or reorganization to
require successor governmental organizations to honor the
prior commitments of predecessor governmental organizations
regarding the JPA programs.
C. Provides that successor governmental
organizations to predecessor member agencies of the JPAs are
bound by the "debt and obligation" of revenue bonds
authorized by the JPA, including installment bonds
authorized but not yet.
3. The "Financing" Bill
A. Clarifies that the JPA, as an independent
agency, can engage in "installment" authorization and
issuance of revenue bonds for the purpose, in addition to
those now authorized, of constructing bridges and major
thoroughfares.
B. Clarifies the JPAs' eminent domain powers
necessary to implement the JPA program.
C. Provides authorization for stand-by user
fee authority, in the event that no federal, state or other
funding sources are available to pay for that portion of
project costs not funded by existing development fees.
1181E
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JOINT POWERS AGENCY LEGISLATIVE PROGRAM
BILL SUMMARY MEMORANDUM
March 4, 1987
BILL: SB
Introduced
SUBJECT: Clarification of Government Code §66484.3
pertaining to financing for joint powers agencies
(established pursuant to Chapter 5, Division 7,
Title 1 of the Government Code) in Orange County
for purposes of constructing bridges and major
thoroughfares (The "Clean -Up" Bill).
AMENDED:
STATUS: Draft Bill
SUMMARY:
Existing law provides that Orange County and the
cities of that county may, to further the purposes of a
joint powers agreement established for the construction of
bridges or major thoroughfares, under Government Code
Sections 66484.3 and 50029, impose the requirement of
payment of a fee as a condition of approval of a final map
or as a condition of issuing a building permit, and expend
a portion of such fees for "administrative expenses."
This bill provides clarifing technical amendments
which accomplish the following:
(1) Clarifies that the calendar year during which
"administrative expenses" may be expended includes the
calendar year 1986, as well as the following years.
(2) Clarifies that the annual budget authorization
applies to each joint powers agency created and authorized
to utilize Government Code §66484.3, rather than each
individual member of such agency, or collectively, all of
such agencies now or hereafter formed under such generic
legislation.
(3) Clarifies that the definition of "construction"
expenses include the cost of design, acquisition of
right-of-way, administration of construction -contracts,
actual construction,
accounting, legal and
such construction.
and environmental, engineering,
other such services necessary for
(4) Clarifies that the definition of "administrative"
expenses include "office, personnel, and other customary
and normal expenses associated with the day-to-day
management."
(5) Clarifies the relationship of Government Code
§50377.5 [as amended in the last session by AB 3314
(Leonard)) to Government Code $66484.3, regarding the
timing of certain fee collection processes, in a manner
that perserves the intent and administration of both
sections, and continues the existing fee collection
program as a condition of building permit issuance.
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The OClean-UPO Bill 4A
SEC. 1. Section 66484.3 of the Government Code is
amended to read:
T.the Board of Supervisors of the County of Orange and
the city council of any city in that county may, by
ordinance, require the payment of a fee as a condition of
approval of a final map or as a condition of issuing a
building permit for purposes of defraying the actual or
estimated cost of constructing bridges over waterways,
railways, freeways, and canyons, or constructing major
thoroughfares.
(b) The local ordinance may require payment of fees
pursuant to this section if:
(1) The ordinance refers to the circulation element of
the general plan and, in the case of bridges, to the
transportation provisions or flood control provisions of
the general plan which identify railways, freeways,
streams, or canyons for which bridge crossings are
required on general plan or local roads and in the case of
major thoroughfares, to the provisions of the circulation
element which identify those major thoroughfares whose
primary purpose is to carry through traffic and provide a
network connecting to or which is part of the state
5.
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highway system, and the circulation element,
transportation provisions, or flood control provisions
have been adopted by the local agency 30 days prior to the
filing of a map or application for a building permit.
Bridges which are part of a major thoroughfare need not be
separately identified in the transportation or flood
control provisions of the general plan.
(2) The ordinance provides that there will be a public
hearing held by the governing body for each area
benefited. Notice shall be given pursuant to Section
65905. In addition to the requirements of Section 65905,
the notice shall contain preliminary information related
to the boundaries of the area of benefit, estimated cost,
and the method of fee apportionment. The area of benefit
may include land or improvements in addition to the land
or improvements which are the subject of any map or
building permit application considered at the proceedings.
(3) The ordinance provides that at the public hearing,
the boundaries of the area of benefit, the costs, whether
actual or estimated, and a fair method of allocation of
costs to the area of benefit and fee apportionment are
established. The method of fee apportionment, in the case
of major thoroughfares, shall not provide for higher fees
on land which abuts the proposed improvement except where
the abutting property is provided direct usable access to
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the major thoroughfare. A description of the boundaries
of the area of benefit, the costs, whether actual or
estimated, and the method of fee apportionment established
at the hearing shall be incorporated in a resolution of
the governing body, a certified copy of which shall be
recorded by the governing body conducting the hearing with
the recorder of the county in which the area of benefit is
located. The resolution may subsequently be modified in
any respect by the governing body. Modifications shall be
adopted in the same manner as the original resolution.
Any modification shall be subject to the protest
procedures prescribed by paragraph (6) of this
subdivision. The resolution may provide for automatic
periodic adjustment of fees based upon the Department of
Transportation, without further action of the governing
body, including, but not limited to, public notice or
hearing. The apportioned fees shall be applicable to all
property within the area of benefit and shall be payable
as a condition of approval of a final map or as a
condition of issuing a building permit for any of the
property or portions of the property. Where the area of
benefit includes lands not subject to the payment of fees
pursuant to this section, the governing body shall make
provision for payment of the share of improvement costs
apportioned to those lands from other sources, but those
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sources need not be identified at the time of the adoption -
of the resolution.
(4) The ordinance provides that payment of fees shall
not be required unless the major thoroughfares are in
addition to, or a reconstruction or widening of, any
existing major thoroughfares serving the area at the time
of the adoption of the boundaries of the area of benefit.
(5) The ordinance provides that payment of fees shall
not be required unless the planned bridge facility is an
original bridge serving the area or an addition to any
existing bridge facility serving the area at the time of
the adoption of the boundaries of the area of benefit.
Fees imposed pursuant to this section shall not be
expended to reimburse the cost of existing bridge facility
construction, unless these costs are incurred in
connection with the construction of an addition to an
existing bridge for which fees may be required.
(6) The ordinance provides that if, within the time
when protests may be filed under its provisions, there is
a written protest, filed with the clerk of the legislative
body, by the owners of more than one-half of the area of
the property to be benefited by the improvement, and
sufficient protests are not withdrawn so as to reduce the
area represented to less than one-half of that to be
benefited, then the proposed proceedings shall be
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abandoned, and the legislative body shall not, for one
0
year from the filing of that written protest, commence or
carry on any proceedings for the same improvement or
acquisition under the provisions of this section, unless
the protests are overruled by an affirmative vote of
four-fifths of the legislative body.
Nothing in this section shall preclude the processing
and recordation of maps in accordance with other
provisions of this division if proceedings are abandoned.
Any protests may be withdrawn in writing by the owner
who filed the protest, at any time prior to the conclusion
of a public hearing held pursuant to the ordinance.
If any majority protest is directed against only a
portion of the improvement then all further proceedings
under the provisions of this section to construct that
portion of the improvement so protested against shall be
barred for a period of one year, but the legislative body
shall not be barred from commencing new proceedings not
including any part of the improvement or acquisition so
protested against. Nothing in this section shall prohibit
the legislative body, within the one-year period, from
commencing and carrying on new proceedings for the
construction of a portion of the improvement so protested
against if it finds, by the affirmative vote of
four-fifths of its members, that the owners of more than
46 one-half of the area of thero ert
p p y to be benefited are *P
in favor of going forward with that portion of the
improvement or acquisition.
(c) Fees paid pursuant to an ordinance adopted
pursuant to this section shall be deposited in a planned
bridge facility or major thoroughfare fund. A fund shall
be established for each planned bridge facility project or
each planned major thoroughfare project. If the benefit
area is one in which more than one bridge or major
thoroughfare is required to be constructed, a fund may be
so established covering all of the bridge or major
thoroughfare projects in the benefit area. Moneys in the
fund shall be expended solely for the construction or
reimbursement for construction of the improvement serving
the area to be benefited and from which the fees
comprising the fund were collected, or to reimburse the
county or a city for the cost of constructing the
improvement.
(d) An ordinance adopted pursuant to this section may
provide for the acceptance of considerations in lieu of
the payment of fees.
(e) The county or a city imposing fees pursuant to
this section may advance money from its general fund or
road fund to pay the cost of constructing the improvements
and may reimburse the general fund or road fund from
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planned bridge facility or major thoroughfares funds 4
established to finance
the construction of the A
improvements. P
(f) The county or a city imposing fees pursuant to
this section may incur an interest-bearing indebtedness
for the construction of bridge facilities or major
thoroughfares. The sole security for repayment of the
indebtedness shall be moneys in planned bridge facility or
major thoroughfares funds.
(g) The term "construction," as used in this section,
includes design, acquisition of right-of-way,
administration of construction contracts, XMd/actual
construction, and environmental engineering, account'
legal, and oth r such services neCessary therefor and
also includes reasonable administrative expenses, not
exceeding six hundred thousand dollars ($600,000) in any
calendar year incurred in association with those
activities -- - -1986-by-each agency c -
ated
• •.
the
thoroughfares
.•u therei means -those
se
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(h) Nothing in this section shall be construed to
preclude the County of Orange or any city within that
county from providing funds for the construction of bridge
facilities or major thoroughfares to defray costs not
allocated to the area of benefit.
(i) Any city within the County of Orange may require
the payment of fees in accordance with this section as to
any property in an area of benefit within the city's
boundaries, for facilities shown on its general plan or
the county's general plan, whether the facilities are
situated within or outside the boundaries of the city, and
the county may expend fees for facilities or portions
thereof located within cities in the county.
(j) The validity of any fee required pursuant to this
section shall not be contested in any action or proceeding
unless commenced within 60 days after recordation of the
resolution described in paragraph (3) of subdivision (b).
The provisions of Chapter 9 (commencing with Section 860)
of Title 10 of Part 2 of the Code of Civil Procedure shall
be applicable to any such action or proceeding. This
subdivision shall also apply to modifications of fee
programs.
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SEC. 3. This act is an urgency statute necessary for
the immediate preservation of the public peace, health or
safety within the meaning of Article IV of the
-Constitution and shall go into immediate effect The
facts constituting the necessity are!
There is presently a transportation crisis within
Orange County due to the lack of funds for constructing
bridges over waterways. railways, freeways. and canyons
or for constructing major thoroughfares_ This crisis is
affecting the people of the State within Orange County and
elsewhere. This act will alleviate that crisis by
clarifying the authority of the Board of Supervisors of
the County of Orange and city councils within that county
to require the payment of fees for Rurposes of defraying
the actual or estimated cost of constructing _bridges over
waterways. railways, freeways and canyons. or
constructing major thoroughfares. and to make appropriate
administrative expenditures for such purposes
1183E
JOINT POWERS AGENCY LEGISLATIVE PROGRAM O
BILL SUMMARY MEMORANDUM
March 4, 1987
BILL: SB
Introduced
SUBJECT: Revisions to the Cortese -Knox Local Government
Reorganization Act of 1985 (Division 3, Title 5
of the Government Code), and Government Code
Section 66484.3 (The "Preservation of Program"
Bill)
AMENDED:
STATUS: Draft Bill
SUMMARY:
Existing law defines for the powers and duties of a
Local Agency Formation Commission (LAFCO) to approve a
"change in organization" or a "reorganization" by
incorporation, annexation or detachment of a city, and
provides for the establishment of a program by the County
of Orange and any city in that County to finance and
construct bridges and major thoroughfares.
This bill provides the following substantive changes
in such powers and duties and Orange County bridge and
major thoroughfare construction program:
(1) Clarifies authority of LAFCO to condition a
change in organization or reorganization to require
successors to any signatory agency to a joint exercise of
powers agreements established pursuant to Chapter 5,
Division 7, Title 1 of the Government Code, to honor
commitment of their predecessor agency member of the joint
powers agency.
(2) Requires successor local agencies established
through a change of organization or a reorganization to
any local -agency signatory to a joint exercise of powers
agreement, established pursuant to Chapter 5, Division 7,
Title 1 of the Government Code to honor all previous
contract commitments made by either the predecessor
14
signatory party to the joint exercise of powers agreement
or by the entity created by the joint exercise of powers
agreement.
1184E
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The 'Preservation of Program" Bill
9
The people of the State of California do enact as follows:
SEC. 1. Section 56121 of the Government Code is
amended to read as follows:
Section 56121. No change of organization or
reorganization, or any term or condition of a change of
organization or reorganization, shall impair the rights of
any bondholder or other creditor of any county, city, or
district. Nor shall- any chaage of organization Qr
reorganization, or ! 11 or • • • } • t ! • - •W�M
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SEC. 2. Section 56844(s) of the Government Code, regarding
the permitted terms and conditions of a change of organization
or reorganization, is amended to read as follows:
Section 56844(s). The levying of a benefit assessment,
includina the imposition of a fee pursuant to Government Code
Section 50029, or the approval by the voters of a special tax.
For Rurposes of this section imposition of a fee as a
condition of issuan a of buildinq_permit does not constitute
direct regulation of land use property development or
subdivision r cui rement s
SEC. 3. Section 57376 of the Government Code is amended to
read as follows:
S11 If the newly incorporated city comprises territory
formerly unincorporated, the city council shall, immediately
following its organization and prior to performing any other
official act, adopt an ordinance providing that all county
ordinances previously applicable shall remain in full force and
effect as city ordinances for a period of 120 days after
incorporation, or until the city council has enacted ordinances
superseding the county ordinances, whichever occurs first-.
provided, however that if the Board of Supervisors of the
County of -Orange ha- adopted an ord* a or resolution. or
both, pursuant to Sections 66484 or 50029 of the Government
Code prior to the effective date of an Inc nrnnratinn of a city
within that county_ such ordinance or resolution may not be
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reRealed or su-nerseded.-then within Q days of the effective
'-be ordinance or resolution Perseding
the +y ordinAnce.+ +
enactW rto + +
tYe action _+
-bY the county, The ordinance enacted by
the city council immPrli ataiy follow*
wing it�ganiz
shall provide that no city ordinance enacted within that
120 -day period of time be deemed to supersede any county
ordinance unless the city ordinance specifically refers to the
county ordinance, and states an intention to supersede it.
Enforcement of the continuing county ordinances in the
incorporated area shall be by the city, except insofar as
enforcement services are furnished in accordance with Section
57384.
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newly_IncorRorated citV
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subseguent modifications thereof as if such city were a party
thereto.
SEC. 4. Section 66484.3 of the Government Code is amended
to read as follows:
(a) The Board of Supervisors of the County of Orange and
the city council of any city in that county may, by ordinance,
require the payment of a fee as a condition of approval of a
final map or as a condition of issuing a building permit for
purposes of defraying the actual or estimated cost of
constructing bridges over waterways, railways, freeways, and
canyons, or constructing major thoroughfares.
(b) The local ordinance may require payment of fees
pursuant to this section if:
(1) The ordinance refers to the circulation element of the
general plan and, in the case of bridges, to the transportation
provisions or flood control provisions of the general plan
which identify railways, freeways, streams, or canyons for
which bridge crossings are required on general plan or local
roads and in the case of major thoroughfares, to the provisions
of the circulation element which identify those major
thoroughfares whose primary purpose is to carry through traffic
and provide a network connecting to or which is part of the
state highway system, and the circulation element,
transportation provisions, or flood control provisions have
been adopted by the local agency 30 days prior to the filing of
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a map ora application for a building
PP lding permit. Bridges which are
part of a major thoroughfare need not be separately identified
in the transportation or flood control provisions of the
general plan.
(2) The ordinance provides that there will be a public
hearing held by the governing body for each area benefited.
Notice shall be given pursuant to Section 65905. In addition
to the requirements of Section 65905, the notice shall contain
preliminary information related to the boundaries of the area
of benefit, estimated cost, and the method of fee
apportionment. The area of benefit may include land or
improvements in addition to the land or improvements which are
the subject of any map or building permit application
considered at the proceedings.
(3) The ordinance provides that at the public hearing, the
boundaries of the area of benefit, the costs, whether actual or
estimated, and a fair method of allocation of costs to the area
of benefit and fee apportionment are established. The method
of fee apportionment, in the case of major thoroughfares, shall
not provide for higher fees on land which abuts the proposed
improvement except where the abutting property is provided
direct usable access to the major thoroughfare. A description
of the boundaries of the area of benefit, the costs, whether
actual or estimated, and the method of fee apportionment
established at the hearing shall be incorporated in a
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resolution of the governing body, a certified copy of which
shall be recorded b the governing Y g g body conducting the hearing
with the recorder of the county in which the area of benefit is
located. The resolution may -subsequently be modified in any
respect by the governing body. Modifications shall be adopted
in the same manner as the original resolution. Any
modification shall be subject to the protest procedures
prescribed by paragraph (6) of this subdivision. The
resolution may provide for automatic periodic adjustment of
fees based upon the Department of Transportation, without
further action of the governing body, including, but not
limited to, public notice or hearing. The apportioned fees
shall be applicable to all property within the area of benefit
and shall be payable as a condition of approval of a final map
or as a condition of issuing a building permit for any of the
property or portions of the property. Where the area of
benefit includes lands not subject to the payment of fees
pursuant to this section, the governing body shall make
provision for payment of the share of improvement costs
apportioned to those lands from other sources, but those
sources need not be identified at the time of the adoption of
the resolution..
(4) The ordinance provides that payment of fees shall not
be required unless the major thoroughfares are in addition to,
or a reconstruction or widening of, any existing major
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thoroughfares serving the area at the time of the adoption of
the boundaries of the area of benefit.
(5) The ordinance provides that payment of fees shall not
be required unless the planned bridge facility is an original
bridge serving the area or an addition to any existing bridge
facility serving the area at the time of the adoption of the
boundaries of the area of benefit. Fees imposed pursuant to
this section shall not be expended to reimburse the cost of
existing bridge facility construction, unless these costs are
incurred in connection with the construction of an addition to
an existing bridge for which fees may be required.
(6) The ordinance provides that if, within the time when
protests may be filed under its provisions, there is a written
protest, filed with the clerk of the legislative body, by the
owners of more than one-half of the area of the property to be
benefited by the improvement, and sufficient protests are not
withdrawn so as to reduce the area represented to less than
one-half of that to be benefited, then the proposed proceedings
shall be abandoned, and the legislative body shall not, for one
year from the filing of that written protest, commence or carry
on any proceedings for the same improvement or acquisition
under the provisions of this section, unless the protests are
overruled by an affirmative vote of four-fifths of the
legislative body.
4'D
Nothing in this section shall preclude therocessin
P g and
recordation of maps in accordance with other provisions of this
division if proceedings are abandoned.
Any protests may be withdrawn in writing by the owner who
filed the protest, at any time prior to the conclusion of a
public hearing held pursuant to the ordinance.
If any majority protest is directed against only a portion
of the improvement then all further proceedings under the
provisions of this section to construct that portion of the
improvement so protested against shall be barred for a period
of one year, but the legislative body shall not be barred from
commencing new proceedings not including any part of the
improvement or acquisition so protested against. Nothing in
this section shall prohibit the legislative body, within the
one-year period, from commencing and carrying on new
proceedings for the construction of a portion of the
improvement so protested against if it finds, by the
affirmative vote of four-fifths of its members, that the owners
of more than one-half of the area of the property to be
benefited are in favor of going forward with that portion of
the improvement or acquisition.
(c) Fees paid pursuant to an ordinance adopted pursuant to
this section shall be deposited in a planned bridge facility or
major thoroughfare fund. A fund shall be established for each
planned bridge facility project or each planned major
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thoroughfare project. If the benefit area is one in which more
than one bridge or major thoroughfare is required to be
constructed, a fund may be so established covering all of the
bridge or major thoroughfare projects in the benefit area.
Moneys in the fund shall be expended solely for the
construction or reimbursement for construction of the
improvement serving the area to be benefited and from which the
fees comprising the fund were collected, or to reimburse the
county or a city for the cost of constructing the improvement.
(d) An ordinance adopted pursuant to this section may
provide for the acceptance of considerations in lieu of the
payment of fees.
(e) The county or a city imposing fees pursuant to this
section may advance money from its general fund or road fund to
pay the cost of constructing the improvements and may reimburse
the general fund or road fund from planned bridge facility or
major thoroughfares funds established to finance the
construction of the improvements.
(f) The county or a city imposing fees pursuant to this
section may incur an interest-bearing indebtedness for the
construction of bridge facilities or major thoroughfares. The
sole security for repayment of the indebtedness shall be moneys
in planned bridge facility or major thoroughfares funds.
(g) The term "construction," as used in this section,
includes design, acquisition of right-of-way, administration of
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construction contracts, and actual construction, and also
IQ
includes reasonable administrative expenses, not exceeding six
hundred thousand dollars ($600,000) in any calendar year
incurred in association with those activities.
(h) Nothing in this section shall be construed to preclude
the County of Orange or any city within that county from
providing funds for the construction of bridge facilities or
major thoroughfares to defray costs not allocated to the area
of benefit.
(i) Any city within the County of Orange may require the
payment of fees in accordance with this section as to any
property in an area of benefit within the city's boundaries,
for facilities shown on its general plan or the county's
general plan, whether the facilities are situated within or
outside the boundaries of the city, and the county may expend
fees for facilities or portions thereof located within. cities
in the county.
(j) The validity of any fee required pursuant to this
section shall not be contested in any action or proceeding
unless commenced within 60 days after recordation of the
resolution described in paragraph (3) of subdivision (b). The
provisions of Chapter 9 (commencing with Section 860) of Title
10 of Part 2 of the Code of Civil Procedure shall be applicable
to any such action or proceeding. This subdivision shall also
apply to modifications of fee programs.
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AG-
JOINT POWERS AGENCY LEGISLATIVE PROGRAM
BILL SUMMARY MEMORANDUM
March 4, 1987
BILL: SB
Introduced
SUBJECT: Revisions to the Joint Exercise of Powers
Legislation (Chapter 5, Division 7, Title 1 of
the Government Code) (The "Financing" Bill)
AMENDED:
STATUS: Draft Bill
SUMMARY:
Existing law defines the powers and duties of an
entity formed through a joint exercise of powers agreement
to authorize and issue revenue bonds.
This bill provides for the following substantive
changes to these powers and limitations to issue revenue
bonds, as well as for the addition of certain new
financing tools, including user fees:
(1) Provides that an entity formed pursuant to a
joint exercise of powers agreement may authorize and issue
revenue bonds for the additional purpose of constructing
bridges and major thoroughfares.
(2) Provides that an entity formed pursuant to a
joint exercise of powers agreement may authorize and issue
revenue bonds in "installments.•
(3) Provides that an entity formed pursuant to a
joint exercise of powers agreement may authorize the
issuance of bonds, including "installments" -type
authorizations and issuances of revenue bonds, as a
separate legal entity, instead of the current requirement
that individual signatories to such a joint exercise of
powers agreement individually approve such revenue bond
authorizations and issuances.
aA
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(4) Provides authorization for an entity formed
pursuant to a joint exercise of powers agreement to
supplement its financing power by the addition of user
fees, in the form of, among others, a toll road authority
similar to the E1 Dorado Toll Tunnel Authority, in the
event that the portion of costs not funded by development
fees for the construction of bridge facilities and major
thoroughfares pursuant to Government Code §§66484.3 and
50029 are not funded by federal, state or other sources.
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The 'Financing' Bill
The people of the State of California do enact as follows:
SEC. 1. Section 6546 of the Government Code is
amended to read:
In addition to other powers, any agency, commission,
or board provided for by a joint powers agreement pursuant
to Article 1 (commencing with Section 6500) may issue
revenue bonds pursuant to this article to pay the cost and
expenses of acquiring or constructing a project for any or
all of the following purposes:
(a) An exhibition building or other place for holding
fairs or exhibitions for the display of agricultural,
livestock, industrial, or other products, including
movable equipment, entertainment facilities, and other
facilities to be used in conjunction with holding a fair
or exposition in several locations.
(b) A coliseum, a stadium, a sport arena or sports
pavilion or other building for holding sport events,
la
athletic contests, contests of skill, exhibitions,
spectacles and other public meetings.
(c) Any other public buildings, including, but not
limited to, general administrative facilities of a city,
county, city and county, special district, or authority.
.29
•` a
(d) A regional or local public park, recreational area, or `!
recreational center, and all facilities and improvements
related thereto.
(e) A facility or the generation or transmission of
electrical energy for public or private uses and all rights,
properties, and improvements necessary therefor, including fuel
and water facilities and resources. As used in this chapter,
"transmission of electric energy" does not include the final
distribution of electric energy to the consumer.
(f) A facility for the disposal, treatment, or conversion
to energy and reusable materials of solid or hazardous waste or
toxic substances.
(g) Facilities for the production, storage, transmission,
or treatment of water or wastewater.
(h) Local streets, roads, and bridges.
tXxJJU Mass transit facilities or vehicles.
MiU Publicly owned or operated commercial or general
aviation airports and airport -related facilities.
MLU Police or fire stations.
M(mm) Public works facilities, including corporation
yards.
O)Ini Public health facilities owned or operated by a
City, county, city and county, special district, or authority.
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KE
1 �•
tgirj l Criminal justice facilities, including court
I
buildings, jails,, juvenile halls, and juvenile detention
facilities.
tdyJp_J Public libraries.
t9Z qi Publicly owned or operated parking garages.
tgiJL. Low-income housing projects owned or operated by
a city, county, city and county, or housing authority.
,(fyJ&Z Public improvements authorized in a project area
created pursuant to the Community Redevelopment Law, Part 1
(commencing with Section 33000) of Division 24 of the Health
and Safety Code.
t9JJ_U Public improvements authorized pursuant to the
Improvement Act of 1911, Division 7 (commencing with Section
5000) of the Streets and Highways Code, the Improvement Bond
Act of 1915, Division 10 (commencing with Section 8500) of the
Streets and Highways Code, the Municipal Improvement Act of
1913, Division 12 (commencing with Section 10000) of the
Streets and Highways Code, and the Mello -Roos Community
Facilities Act of 1982, Chapter 2.5 (commencing with Section
53311) of Part 1 of Division 2 of Title 5.
ttY W Equipment necessary to support the above -listed
facilities or necessary to deliver public services therefrom,
including, but not limited to, telecommunications equipment,
computers, and service vehicles.
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J
• �i i
Bonds may be issued pursuant to this article if the joint l
powers entity, or its individual parties which contract
pursuant to Sections 6547.5, 6547.6, or 6547.7 to make payments
to be applied to the payment of the indebtedness, have the
power to acquire, construct, maintain, or operate one or more
of the projects specified in this section.
SEC. 2. Section 6547 of the Government Code is amended to
read:
The power of the entity to issue revenue bonds is
additional to the powers common to the parties to the joint
powers agreement, but shall not be exercised until authorized
by the parties to that agreement; provided, that, in the case
of the issuance of revenue bonds by a fair and exhibition
authority or an entity created to construct the bridges and
meiQr thoroughfares referred to in Section 66484-3. such
authorization shall not be required. In the case of a project
for the generation or transmission of electric energy or a
project for the disposal,.treatment, or conversion to energy
and reusable materials of solid waste, or a project for an
intermodal container transfer facility, or a project for the
construction of bridges and major thoroughfares pursuant to
Section 66484.3, such power shall include the power to issue
notes for the purpose of financing studies, the acquisition of
options, permits, and other preliminary costs to be incurred
prior to the undertaking of the construction -or acquisition of
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32,
4e;'
a project, and for the purpose of "
p providing temporary financing - --
�, of costs of construction or acquisition of a project. Such
notes may be issued at public or private sale, and may be
renewed from time to time, and the principal and interest with
respect thereto may be made payable from the revenues of the
entity unless paid from the proceeds of revenue bonds.
Every local agency shall make any authorization, as
permitted under the first sentence of this section, by
ordinance. Except as provided herein, fXd such ordinance
shall describe in general terms the project, or projects, to be
funded by the revenue bonds, the maximum amount of the bonds
proposed to be issued, and the anticipated sources of revenue
to redeem the bonds. In the case of an ant;* rraa*aA *^
- - - -=s:-r-=1KiK=iK�.�7=�f=�1=�•�•!i•1��•1•�i•5:��15•hi�=1�.��i•2*��I��•
shall be by resolution of the governing body of the entity, In
the case of such a project or a project for the generation or
transmission of electric energy or a project for the disposal,
treatment, or conversion to energy and reusable materials of
solid waste, or a project for an intermodal container transfer
facility, XMd such ordinance or resolution shall describe in
general terms the project or the studies or other preliminary
costs therefor to be funded by the revenue bonds or notes, the
estimate of the maximum amount of bonds to issued for such
-5-
33
f ~`
project or such studies or other preliminary costs, and the -"
anticipated sources of revenue or other funds to pay the
principal of and interest of such bonds or notes, provided that
the statement of the estimated maximum amount of such bonds or
notes shall not be deemed to prevent the authorization by such
ordinance gr resolution of the issuance of bonds or notes by
the entity in amounts which may exceed such estimate without
further authorization under such ordinance or resolution if and
to the extent such additional bonds or notes shall be required
to complete the financing of such project or such studies or
other preliminary costs. Each such ordinance shall state that
it is subject to the provisions for referendum prescribed by
Section 3751.7 of the Elections Code.
A separate authorization shall be required for each
separate bond issue proposed by the entity, except that, in the
case of a project for the generation or transmission of
electric energy or a project for the disposal, treatment, or
conversion to energy and reusable materials of solid waste, or
a project for an intermodal container transfer facility, or a
pursuant to Section 66484.3. a single authorization shall be
sufficient for bonds which may be issued in installments from
time to time for a project or the costs of studies or other
preliminary costs therefor which shall be identified in such
authorization.
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The requirement of an ordinance and the right to referendum 4.1
thereon shall not apply to the issuance of revenue bonds if,
prior to March 9, 1971, one or more local or public agencies
shall have taken formal action to implement any one or more
projects to be acquired or constructed pursuant to a joint
powers agreement. Formal action to implement any one or more
projects shall include, but not be limited to, any of the
following:
(a) The incurring of liability for a substantial portion of
an architectural or engineering contract or other contract
relating to a project.
(b) The acquisition of land or improvements for the project.
(c) The making of a substantial contribution toward the
project.
Notwithstanding the requirement that parties to a joint
powers agreement authorize the issuance of revenue bonds, in
the case of a project which consists of the generation or
transmission of electric energy financed in whole or in part by
the issuance of revenue bonds, only those local agencies which
contract to make payments to be applied to the payment of the
revenue bonds shall be required to authorize the issuance of
such revenue bonds.
SEC. 3. Section 6571 of the Government Code is amended to
read:
The bonds shall be issued and sold as the governing body
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f
�1
may determine and for not less than par and accrued interest to'';�
t
date of delivery, except that, in the case of a project for the
generation or transmission of electric energy, a project for
the disposal, treatment, or conversion of energy and reusable
materials of solid waste, or a project for a purpose specified
in Section 6546.6, or a project for an intermodal container
transfer facility specified in Section 6546.12, or a project
for a health facility specified in Section 6546.13, or a
project for the construction of bridges and major thoroughfares
pursuant to Section 66484.3. or in the case of bonds of a fair
and exhibition authority, the bonds may be sold at less than
par if the governing body determines that sale of the bonds at
less than par will result in more favorable terms for the
bonds. The sale shall be conducted in compliance with Chapter
10 (commencing with Section 5800) of Division 6 of Title 1,
unless, in the case of a project for the generation of
transmission of electric energy, a project for the disposal,
treatment, or conversion of energy and reusable materials of
solid waste, a project for the development and construction of
an intermodal container transfer facility specified in Section
6546.12, a project for a health facility specified in Section
6546.13, or a project for the construction of bridges and major
thoroughfares pursuant to Section 66484.3. or in the case of
bonds of a fair and exhibition authority, the governing body
determines that a negotiated sale of the bonds is necessary, in
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34,
which case the bonds shall be sold on such terms as shall be`rr,,
approved by the governing body. /
The proceeds from the sale (except premium and accrued
interest, which shall be paid into the bond service or other
fund designated or established for the payment of the principal
and interest of the bonds) shall be paid into the construction
fund or other fund designated by the indenture authorizing the
issuance of the bonds and shall be applied exclusively to the
objects and purpose set forth in such indenture, including all
expenses incidental thereto or in connection therewith, and
also including the payment of interest on the bonds during the
period of study and construction of the project and for a
period not to exceed 12 months after completion of such
construction.
This section shall remain in effect only until January 1,
1988, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 1988, deletes or
extends that date. If that date is not deleted or extended,
then, on and after January 1, 1988, pursuant to Section 9611 of
the Government Code, Section 6571 of the Government Code, as
amended by Section 3 of Chapter 914 of the Statutes of 1983,
shall have the same force and effect as if this temporary
provision had not been enacted.
SEC. 4. Section 6571 of the Government Code, as amended by
Section 3 of Chapter 914 of the Statutes of 1983, is amended to
-9-
37
•
read:
The bonds shall be issued and sold as the governing body
may determine and for not less than par and accrued interest to
date of delivery, except that, in the case of a project for the
generation of transmission of electric energy, a project for
the disposal, treatment, or conversion of energy and reusable
materials of solid waste, or a project for a purpose specified
in Section 6546.6, or a project for an intermodal contaner
transfer facility specified in Section 6546.6, or a project for
the construction of bridges and major thoroughfares pursuant to
Section 66484.3. or in the case of bonds of a fair and
exhibition authority, the bonds may be sold at less than par if
the governing body and determine that such a sale will result
in more favorable terms for the bonds. The sale shall be
conducted in compliance with Chapter 10 (commencing with Secton
5800) or Division 6 of Title 1, unless, in the case of a
project for the generation or transmission of electric energy,
a project for the disposal, treatment, or conversion of energy
and reusable materials of solid waste, a project for the
development and construction of an intermodal container
transfer facility specified in Section 6546.6, or a project for
the construction of bridges and major thoroughfares pursuant to
Section 66484.3. or in the case of bonds of a fair and
exhibition authority, the governing body shall determine that a
negotiated sale of the bonds is necessary, in which case the
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All
I
bonds shall be sold on such terms as shall be approved by the Mf f
L
governing body.
The proceeds from the sale (except premium and accrued
interest, which shall be paid into the bond service or other
fund designated or established for the payment of the principal
and interest of the bonds) shall be paid into the construction
fund or other fund designated by the indenture authorizing the
issuance of the bonds shall and shall be applied exclusively to
the objects and purposes set forth in such indenture, including
all expenses incidental thereto or in connection therewith, and
also incuding the payment of interest on the bonds during the
period of study and construction of the project and for a
period not to exceed 12 months after completion of such
construction.
SEC. 5. Section 6502 of the Government Code is amended to
read:
If authorized by their legislative or other governing
bodies, two or more public agencies by agreement may jointly
exercise any power common to the contracting parties, even
though one or more of the contracting agencies may be located
outside this state.
It shall not be necessary that any power common to the
contracting parties be exercisable by each such contracting
party with respect to the geographical area in which such power
is to be jointly exercised. For purposes of this section, two
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3f
or more public agencies having the power to conduct
agricultural, livestock, industrial, cultural, or other fairs
or exhibitions shall be deemed to have common power with
respect to any such fair or exhibition conducted by any one or
more of such public agencies or by an entity created pursuant
to a joint powers agreement entered into by such public
agencies.
furthercommon to a county and one or more cities shall have the
.. .n. power exercise •ms•n Row-
MME
Rart of such county, city. or cities at the time the agreement
was entered into, notwithstanding any subsequent change of
organization or reorganization as such terms are defined in
Section 56021 and 56073.
SEC. 6. Section 66484.3 of the Government Code is amended
to read:
Section 66484.3(f). The county or a city imposing fees
pursuant to this section may incur an interest-bearing
indebtedness for the construction of bridge facilities or major
thoroughfares and may enter into joint exercise of powers
aareements.with other local agencies imposing fees pursuant to
this section, for the purpose of, among others, jointly
exercising as i duly authorized original power established by
this section in addition to those common powers otherwise
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authorized by law to be exercise
rLthrough a joint exercise of
Powers agreement, those powers authorized in Division 17
Chapter 5 of the Streets and Highways Code for the purpose of
constructing bridge facilities and major thoroughfares. The
sole security for repayment of the indebtedness shall be moneys
in planned bridge facility or major thoroughfares funds.
1188E
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The draft of subsection (f) of Government Code Section
66484.3, as contained in the "Financing Bill" portion of
the March 4, 1987 Legislative Program Memorandum from
James E. Erickson to the Foothill/Eastern and San Joaquin
Hills Transportation Corridor Agencies, is revised to read
as follows:
(f) The county or a city imposing fees pursuant
to this section may incur an interest-bearing indebtedness
for the construction of bridge facilities or major
thoroughfares, and may enter into joint exercise of powers
agreements with other local agencies imposing fees
pursuant to this section, for the purpose of. among
others. jointly exercising as a duly authorized original
power established by this section. in addition to those
common powers otherwise authorized by law to be exercised
through a Joint exercise of powers agreement. those Rowers
authorized in Division 17, Chapter 5 of the Streets and
Highways Code for the purpose of constructing bridge
facilities and major thoroughfares in lieu of a tunnel and
aRRurtenant facilities. The sole security for repayment
of the indebtedness shall be moneys in planned bridge
facility or major thoroughfares funds. In no event,
however. shall the Rowers authorized in Division 17.
Chapter 5 of the Streets and Highways Code be exercised
' X'
f • 11 • • • • t • @ • ' • • t ' • - • • - f
[Additions are indicated by underlining.]
03/06/87
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43
The draft of subsection (g) of Government Code
Section 66484.3, as contained in the "Clean -Up Bill"
portion of the March 4, 1987 Legislative Program
Memorandum from James E. Erickson to the Foothill/Eastern
and San Joaquin Hills Transportation Corridor Agencies,
should be revised to read as follows:
(g) The term •construction," as used in this
section, includes design, acquisition of rightk-of-way,
administration of construction contracts and actual
construction, including but not limited to all direct and
other such services necessary therefor, and also includes
reasonable administrative expenses, not exceeding six -
three hundred thousand
dollars (5300.000) in any calendar year inearred-in
asseeiat-iea-with-these-aetivsties after January 1. 1986.,
as adjusted annually for any increase or decrease in the
Consumer Price Index of the Bureau of Labor Statistics of
the U. S. Department of Labor for all Urban Consumers. Los
Angeles -Long Beach -Anaheim, California (1967.100). as
published by the U. S. Department of Commerce. by each
agency created pursuant to Government Code Section 6500,
et sec, for the purpose of constructing such bridges and
major thoroughfares. "Administrative expenses" means
those office. personnel. and other customary and normal
44
!
expenses associated with the
administration of any such agency.
direct management and
however, not including
costs of construction.
[Additions are indicated by underlining; deletions are
indicated by interlineation.]
03/06/87
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