BILL NUMBER: SB 504 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 4, 2003
PASSED THE ASSEMBLY SEPTEMBER 3, 2003
AMENDED IN ASSEMBLY JUNE 23, 2003
AMENDED IN SENATE JUNE 2, 2003
AMENDED IN SENATE APRIL 30, 2003
INTRODUCED BY Senator Kuehl
FEBRUARY 20, 2003
An act to add Chapter 7 (commencing with Section 132600) to
Division 12.7 of the Public Utilities Code, relating to
transportation.
LEGISLATIVE COUNSEL'S DIGEST
SB 504, Kuehl. Exposition Metro Line Construction Authority.
Existing law establishes the Los Angeles County Metropolitan
Transportation Authority (LACMTA) as the single successor agency to
the Southern California Rapid Transit District and the Los Angeles
County Transportation Commission. The LACMTA is responsible for most
transit guideway projects in Los Angeles County and has specified
duties and responsibilities with regard to transportation.
This bill would establish the Exposition Metro Line Construction
Authority for the purpose of awarding and overseeing final design and
construction contracts for completion of the Los Angeles-Exposition
Metro Line light rail project from the Metro Rail Station at 7th and
Flower Streets in the City of Los Angeles to the downtown area of the
City of Santa Monica.
The bill would, upon allocation of federal and local funds by the
LACMTA for these purposes, require the construction authority to (a)
conduct the financial studies and the planning and engineering
necessary for completion of the project, (b) adopt an administrative
code, including a specified code of conduct for administration of the
construction authority in accordance with laws relating to open
meetings of public entities, contracting and procurement, contracting
goals for minority and women business participation, and political
reform, and (c) as necessary for final design and construction,
complete a detailed management, implementation, safety, and financial
plan for the project and submit the plan to the Governor, the
Legislature, and the California Transportation Commission.
The bill would require that the construction authority be governed
by a board consisting of 7 voting members appointed to terms of 4
years. Two members would be appointed by the City Councils of the
Cities of Santa Monica and Culver City, with each city council
appointing one member by a majority vote of the membership of that
city council. Two members shall be appointed by the City Council of
the City of Los Angeles by a majority vote of its membership. Two
members would be appointed by the Los Angeles County Board of
Supervisors. One member would be appointed by the LACMTA and the
Chief Executive Officer of the LACMTA would serve as an ex officio,
nonvoting member. Each appointing authority would be required to
appoint an alternate member.
The bill would authorize the governing board to appoint an
executive director to serve at the pleasure of the construction
authority. The executive director would be authorized to appoint
staff or retain consultants as necessary to carry out the duties of
the construction authority. The bill would require that all
contracts approved and awarded by the executive director be awarded
in accordance with state and federal laws relating to procurement.
The bill would require that the awards be based on price or
competitive negotiation, or on both.
The bill would require the LACMTA to identify and expeditiously
enter into an agreement with the construction authority to hold in
trust with the construction authority all real and personal property,
and any other assets, accumulated in the planning, design, and
construction of the project, including, but not limited to,
rights-of-way, documents, 3rd-party agreements, contracts, and design
documents, as necessary for completion of the project, to outline
the design review, construction, and testing process, and to describe
the funding sources of the authority, the financial elements, and
the approved budget for the project.
The bill would require the construction authority to enter into a
memorandum of understanding with the LACMTA that specifically
addresses the ability of the LACMTA to review any significant changes
in the scope of the design or construction, or both design and
construction, of the project.
The bill would prohibit the construction authority from
encumbering any future farebox revenue anticipated from the operation
of the project.
The bill would prohibit the construction authority from
encumbering the project with any obligation that is transferable to
the LACMTA upon completion of the design and construction of the
project, except as specified.
The bill would require the authority to be dissolved upon
completion of the project. The LACMTA would assume responsibility
for operating the project upon dissolution of the authority.
The bill would impose a state-mandated local program by placing
additional duties upon local governmental entities.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 7 (commencing with Section 132600) is added to
Division 12.7 of the Public Utilities Code, to read:
CHAPTER 7. EXPOSITION METRO LINE CONSTRUCTION AUTHORITY
132600. For purposes of this chapter, the following terms have
the following meanings:
(a) The "authority" is the Exposition Metro Line Construction
Authority created under this chapter.
(b) The "board" is the governing board of the authority.
(c) The "commission" is the California Transportation Commission.
(d) The "LACMTA" is the Los Angeles County Metropolitan
Transportation Authority.
(e) The "project" is the Los Angeles-Exposition Metro Line light
rail project extending from the Metro Rail Station at 7th Street and
Flower Street in the City of Los Angeles to the downtown of the City
of Santa Monica.
132605. The authority is hereby created for the purpose of
awarding and overseeing final design and construction contracts for
completion of the project.
132610. (a) The authority has all of the powers necessary for
planning, acquiring, leasing, developing, jointly developing, owning,
controlling, using, jointly using, disposing of, designing,
procuring, and building the project, including, but not limited to,
all of the following:
(1) Acceptance of grants, fees, allocations, and transfers of
funds from federal, state, and local agencies, and private entities.
(2) Acquiring, through purchase or through eminent domain
proceedings, any property necessary for, incidental to, or convenient
for, the exercise of the powers of the authority, provided the
authority shall use existing right-of-ways where feasible.
(3) Incurring indebtedness, secured by pledges of revenue
available for project completion.
(4) Contracting with public and private entities for the planning,
design, and construction of the project. These contracts may be
assigned separately or may be combined to include any or all tasks
necessary for completion of the project.
(5) Entering into cooperative or joint development agreements with
local governments or private entities. These agreements may be
entered into for the purpose of sharing costs, selling or leasing
land, air, or development rights, providing for the transferring of
passengers, making pooling arrangements, or for any other purpose
that is necessary for, incidental to, or convenient for the full
exercise of the powers granted to the authority. For purposes of
this paragraph, "joint development" includes, but is not limited to,
an agreement with any person, firm, corporation, association, or
organization for the operation of facilities or development of
projects adjacent to, or physically or functionally related to, the
project.
(6) Relocation of utilities, as necessary for completion of the
project.
(b) The duties of the authority include, but are not limited to,
all of the following:
(1) Conducting financial studies, planning, and engineering
necessary for completion of the project.
(2) (A) Adoption of an administrative code for administration of
the authority in accordance with any applicable laws, including, but
not limited to, the Ralph M. Brown Act (Chapter 9 (commencing with
Section 54950) of Part 1 of Division 2 of Title 5 of the Government
Code), contracting and procurement laws, laws relating to contracting
goals for minority and women business participation, and the
Political Reform Act of 1974 (Title 9 (commencing with Section 81000)
of the Government Code).
(B) (i) The administrative code adopted under subparagraph (A)
shall include a code of conduct for employees and board members that
is consistent with Sections 84308 and 87103 of the Government Code
and prohibits board members and staff from accepting gifts valued at
ten dollars ($10) or more from contractors, potential contractors, or
their subcontractors.
(ii) The code shall require the disclosure, on the record, of the
proceedings by the officer of the agency who receives a contribution
within the preceding 24 months in an amount of more than two hundred
fifty dollars ($250) from a party or participant to a proceeding, and
the disclosure by the party or participant.
(iii) The code shall provide that no officer of the agency shall
make, participate in making, or in any way attempt to use his or her
official position to influence the decision in a proceeding, as
described in Section 84308 of the Government Code, if the officer has
willfully or knowingly received a contribution in the amount of more
than two hundred fifty dollars ($250) within the preceding 24 months
from a party or his or her agent, or from any participant or his or
her agent, if the participant has a financial interest in the
decision.
(iv) Any officer deemed ineligible to participate in a proceeding
due to the provisions of this code of conduct may be replaced for the
purposes of that proceeding by an appointee chosen by the
appropriate appointing authority.
(v) Under the code of conduct, board members shall be deemed to
have a financial interest in a decision within the meaning of Section
87100 of the Government Code if the decision involves the donor of,
or intermediary or agent for a donor of, a gift or gifts aggregating
ten dollars ($10) or more in value within the 12 months prior to the
time the decision was made.
(3) As necessary for final design and construction, completion of
a detailed management, implementation, safety, and financial plan for
the project and submission of the plan to the Governor, the
Legislature, and the commission.
(c) The authority shall make reasonable progress, as determined by
the commission, in the final design and construction of the project.
(d) The duties and responsibilities imposed by this section shall
be contingent upon allocation of federal and local funds by the
LACMTA for these purposes.
132615. (a) The authority shall be governed by a board consisting
of seven voting members who shall be appointed as follows:
(1) Two members shall be appointed by the City Councils of the
Cities of Santa Monica and Culver City with each city council
appointing one member by a majority vote of the membership of that
city council.
(2) Two members shall be appointed by the Los Angeles County
Board of Supervisors.
(3) One member shall be appointed by the LACMTA.
(4) Two members shall be appointed by the City Council of the City
of Los Angeles by a majority vote of its membership.
(b) All members shall serve a term of not more than four years,
with no limit on the number of terms that may be served by any
person.
(c) Each appointing authority shall also appoint an alternate
member to serve in a member's absence. If the position of a voting
member becomes vacant, the alternate member shall serve until the
position is filled as required pursuant to subdivision (a).
(d) Members of the board are subject to the Political Reform Act
of 1974 (Title 9 (commencing with Section 81000) of the Government
Code).
(e) Four members of the board shall constitute a quorum.
(f) The board shall elect a chairperson and vice chairperson from
among the membership of the board.
(g) Each member of the board may be compensated at a rate of not
more than one hundred fifty dollars ($150) per day spent attending to
the business of the authority. Compensation, if paid, shall not
exceed six hundred dollars ($600) per month, plus expenses directly
related to the performance of duties imposed by the authority,
including, but not limited to, travel and personal expenses.
(h) The Chief Executive Officer of the LACMTA shall serve on the
board as an ex officio, nonvoting member.
132620. (a) The board may appoint an executive director to serve
at the pleasure of the authority.
(b) The executive director is exempt from all civil service
provisions and shall be paid a salary established by the board.
(c) The executive director may appoint staff or retain consultants
as necessary to carry out the duties of the authority.
(d) All contracts approved and awarded by the executive director
shall be awarded in accordance with state and federal laws relating
to procurement. Awards shall be based on price or competitive
negotiation, or on both of those things.
132625. The LACMTA shall identify and expeditiously enter into an
agreement or agreements with the authority to do all of the
following:
(a) Hold in trust with the authority all real and personal
property, and any other assets accumulated in the planning, design,
and construction of the project, including, but not limited to,
rights-of-way, documents, third-party agreements, contracts, and
design documents, as necessary for completion of the project.
(b) Outline the design review, construction, and testing process
that acknowledges LACMTA's direct role in the review of the project
to ensure the final project will be compatible, functionally
connected, and operative within LACMTA's existing metro rail system.
(c) Describe the various funding sources and the obligations of
the authority to assist LACMTA obtain federal, state, and local funds
for the project, and the authority's obligations and duties upon
receipt of the funds necessary to construct the project.
(d) Describe all financial elements of the project, and the budget
approved for the project.
132635. The authority shall enter into a memorandum of
understanding with the LACMTA that shall specifically address the
ability of the LACMTA to review any significant changes in the scope
of the design or construction, or both design and construction, of
the project. For purposes of this section, the term "significant
change" means any change of mode or technology, or any other
substantive change that affects the connectivity and operation of the
project as part of the overall transit system operated by the
LACMTA, or any combination of those things. Design and construction
of a light rail project that is consistent with the current scope of
the project shall not be deemed to be a significant change in the
scope of the project and shall not require concurrence by the LACMTA.
132640. The authority shall not encumber any future farebox
revenue anticipated from the operation of the project.
132645. The authority shall not encumber the project with any
obligation that is transferable to the LACMTA upon completion of the
design and construction of the project. The design and construction
to be administered by the authority does not include rolling stock,
which is a component of the operation of the project and shall be
administered by the LACMTA.
132650. The authority shall be dissolved upon completion of
construction of the light rail project. The LACMTA shall assume
responsibility for operating the project upon dissolution of the
authority.
SEC. 2. Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
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