Existing law provides for the creation of the Sacramento Regional Transit District, with specified powers and duties relative to the provision of public transit services. Existing law describes the authorized boundaries of the district, as specified, and provides that the boundaries of the district, at any point in time, shall consist of the area of any city or county within the authorized boundaries where the governing board of the city or county has declared a need for the district to operate. Existing law authorizes the district to operate in any city or county where the need for the district to operate has been declared, except that the district has no power to levy an ad valorem property tax unless a city or county adopts a specified resolution. Existing law provides for a city or county to annex to the district through a written request to the district and approval by the Sacramento Area Council of Governments.

This bill would revise and recast these provisions. The bill would provide that the boundaries of the district, at any point in time, shall consist of specified areas, including a city or county that has acted to annex to the district, and a city incorporated on or after January 1, 2016, if the newly incorporated city consists of territory that was included in the district prior to incorporation. The bill would require an annexation to be subject to an agreement between the annexing city or county and the district board specifying the terms and conditions of annexation, and would delete the requirement for approval of annexation by the Sacramento Area Council of Governments. The bill would provide procedures for detachment of territory within the district by a specified supermajority vote of the district board and a majority vote of the governing body of the territory proposed to be detached.

Existing law provides for the creation of the Sacramento Regional Transit District, with specified powers and duties relative to the provision of public transit services. Existing law describes the authorized boundaries of the district, as specified, and provides that the boundaries of the district, at any point in time, shall consist of the area of any city or county within the authorized boundaries where the governing board of the city or county has declared a need for the district to operate. Existing law authorizes the district to operate in any city or county where the need for the district to operate has been declared, except that the district has no power to levy an ad valorem property tax unless a city or county adopts a specified resolution. Existing law provides for a city or county to annex to the district through a written request to the district and approval by the Sacramento Area Council of Governments.

This bill would revise and recast these provisions. The bill would provide that the boundaries of the district, at any point in time, shall consist of specified areas, including a city or county that has acted to annex to the district, and a city incorporated on or after January 1, 2016, if the newly incorporated city consists of territory that was included in the district prior to incorporation. The bill would require an annexation to be subject to an agreement between the annexing city or county and the district board specifying the terms and conditions of annexation, and would delete the requirement for approval of annexation by the Sacramento Area Council of Governments. The bill would provide procedures for detachment of territory within the district by a specified supermajority vote of the district board and a majority vote of the governing body of the territory proposed to be detached.

Existing law provides for the creation of the Sacramento Regional Transit District, with specified powers and duties relative to the provision of public transit services. Existing law describes the authorized boundaries of the district, as specified, and provides that the boundaries of the district, at any point in time, shall consist of the area of any city or county within the authorized boundaries where the governing board of the city or county has declared a need for the district to operate. Existing law authorizes the district to operate in any city or county where the need for the district to operate has been declared, except that the district has no power to levy an ad valorem property tax unless a city or county adopts a specified resolution. Existing law provides for a city or county to annex to the district through a written request to the district and approval by the Sacramento Area Council of Governments.

This bill would revise and recast these provisions. The bill would provide that the boundaries of the district, at any point in time, shall consist of specified areas, including a city or county that has acted to annex to the district, and a city incorporated on or after January 1, 2016, if the newly incorporated city consists of territory that was included in the district prior to incorporation. The bill would require an annexation to be subject to an agreement between the annexing city or county and the district board specifying the terms and conditions of annexation, and would delete the requirement for approval of annexation by the Sacramento Area Council of Governments. The bill would provide procedures for detachment of territory within the district by a specified supermajority vote of the district board and a majority vote of the governing body of the territory proposed to be detached.

Existing law provides for the creation of the Sacramento Regional Transit District, with specified powers and duties relative to the provision of public transit services. Existing law describes the authorized boundaries of the district, as specified, and provides that the boundaries of the district, at any point in time, shall consist of the area of any city or county within the authorized boundaries where the governing board of the city or county has declared a need for the district to operate. Existing law authorizes the district to operate in any city or county where the need for the district to operate has been declared, except that the district has no power to levy an ad valorem property tax unless a city or county adopts a specified resolution. Existing law provides for a city or county to annex to the district through a written request to the district and approval by the Sacramento Area Council of Governments.

This bill would revise and recast these provisions. The bill would provide that the boundaries of the district, at any point in time, shall consist of specified areas, including a city or county that has acted to annex to the district, and a city incorporated on or after January 1, 2016, if the newly incorporated city consists of territory that was included in the district prior to incorporation. The bill would require an annexation to be subject to an agreement between the annexing city or county and the district board specifying the terms and conditions of annexation, and would delete the requirement for approval of annexation by the Sacramento Area Council of Governments. The bill would provide procedures for detachment of territory within the district by a specified supermajority vote of the district board and a majority vote of the governing body of the territory proposed to be detached.

Existing law provides for the creation of the Sacramento Regional Transit District, with specified powers and duties relative to the provision of public transit services. Existing law describes the authorized boundaries of the district, as specified, and provides that the boundaries of the district, at any point in time, shall consist of the area of any city or county within the authorized boundaries where the governing board of the city or county has declared a need for the district to operate. Existing law authorizes the district to operate in any city or county where the need for the district to operate has been declared, except that the district has no power to levy an ad valorem property tax unless a city or county adopts a specified resolution. Existing law also provides for a city or county to annex to the district through a written request to the district and approval by the Sacramento Area Council of Governments.

This bill would revise and recast these provisions. The bill would provide that the boundaries of the district, at any point in time, shall consist of specified areas, including a city or county that has acted to annex to the district, and a city incorporated on or after January 1, 2016, if the newly incorporated city consists of territory that was included in the district prior to incorporation. The bill would require an annexation to be subject to an agreement between the annexing city or county and the district board specifying the terms and conditions of annexation, and would delete the requirement for approval of annexation by the Sacramento Area Council of Governments. The bill would also provide procedures for detachment of territory within the district by a specified supermajority vote of the district board.

Existing law provides for the creation of the Sacramento Regional Transit District, with specified powers and duties relative to the provision of public transit services. Existing law describes the authorized boundaries of the district, as specified, and provides that the boundaries of the district, at any point in time, shall consist of the area of any city or county within the authorized boundaries where the governing board of the city or county has declared a need for the district to operate. Existing law authorizes the district to operate in any city or county where the need for the district to operate has been declared, except that the district has no power to levy an ad valorem property tax unless a city or county adopts a specified resolution. Existing law also provides for a city or county to annex to the district through a written request to the district and approval by the Sacramento Area Council of Governments.

This bill would revise and recast these provisions. The bill would provide that the boundaries of the district, at any point in time, shall consist of specified areas, including a city or county that has acted to annex to the district, and a city incorporated on or after January 1, 2016, if the newly incorporated city consists of territory that was included in the district prior to incorporation. The bill would require an annexation to be subject to an agreement between the annexing city or county and the district board specifying the terms and conditions of annexation, and would delete the requirement for approval of annexation by the Sacramento Area Council of Governments. The bill would also provide procedures for detachment of territory within the district by a specified supermajority vote of the district board.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 738

Author:(Beth Gaines)

As Amended Ver:July 16, 2015

Majority vote

Original Committee Reference: L. GOV.

SUMMARY: Makes changes to Sacramento Regional Transit District's (RT) boundaries and establishes a new process for the annexation and detachment of territory.

The Senate amendments:

1. Require that a territory, if the territory is within RT's boundaries and is annexed to any city that is not a member entity, remain part of RT unless, at the time of annexation, both a) and b) below, apply, in which case the territory may be detached from RT if the Sacramento County Local Agency Formation Commission determines during annexation proceedings that the territory would be better served by the annexing city than RT:

1. No transit service is operated by RT within the annexed territory or within one-half mile of any outside boundary of the annexed territory; and,

2. No transit service is planned by RT, as evidenced by RT's adopted short-range transit plan, for the annexed territory or within one-half mile of any outside boundary of the annexed territory within five years of the annexation.

2. Allow the detachment of territory under 1) above, to be accomplished without following the detachment process established by this bill which requires a vote of RT's board of directors (Board) and the governing body of the territory proposed to be detached.

3. Provide that RT's boundaries include the unincorporated territory of the County of Sacramento that is not otherwise divided from the rest of the unincorporated territory that is within the urban service area by an incorporated city not previously described in the definition of RT's boundaries.

EXISTING LAW:

1. Establishes the Sacramento Regional Transit District Act (Act) which governs the powers and functions of RT, and establishes RT's territory and Board.

2. Authorizes RT to comprise the Cities of Citrus Heights, Elk Grove, Davis, Folsom, Rancho Cordova, Roseville, Sacramento, West Sacramento, and Woodland, and specified territory in the Counties of Sacramento and Yolo to the extent they are not included in the above-mentioned cities.

3. Provides any city or county may annex to and become part of RT upon approval by the Board following a written request by that city or county and the approval of the Sacramento Area Council of Governments.

4. Requires RT's boundaries, at any point in time, to include:

1. All the area of any city eligible to participate as defined in 3) or 4) above, in which the governing body has declared a need for RT to operate; and,

2. That area of any county eligible to participate under 3) or 4) above, within which the governing body has declared a need for RT to operate.

5. Authorizes RT to operate and exercise its powers within any city provided that RT has no power to levy an ad valorem property tax within the boundaries of any city, unless the city council adopts a resolution declaring there is a need for RT to operate and levy a tax within the city boundaries.

6. Authorizes RT to operate and exercise its powers within all or part of the unincorporated area of any county provided that RT has no power to levy an ad valorem property tax within any unincorporated area, unless the board of supervisors of the county adopts a resolution declaring a need for RT to operate and levy a tax within the unincorporated area of the county.

7. Specifies that a city or county that is not annexed to RT may become a participating entity that is entitled to make at least one appointment to the Board, if they enter into an agreement with RT to pay their proportional share of RT's cost to provide rail or other district-wide transit services to the entity and the District agrees to maintain a specified level of services and is not obligated to provide transit services along any particular route or location.

8. Defines "member entity" to mean a city or county that is annexed to RT pursuant to 2), 3), or 4) above. Defines "member entities" to mean all those cities and counties.

9. Defines "participating entity" to mean a city or county that is not annexed to RT, but has entered into a specified agreement to pay its proportional share of RT's cost to provide rail or other district-wide transit services to the entity.

AS PASSED BY THE ASSEMBLY, this bill:

1. Repealed existing law which governs RT boundaries, and instead, required RT's boundaries to include the following:

   1. The Cities of Sacramento and Rancho Cordova;

   2. The unincorporated territory of Sacramento County that is within the urban service area, as determined by the Board of Supervisors;

   3. The Cities of Citrus Heights, Elk Grove, Davis, Folsom, Rancho Cordova, Roseville, Sacramento, West Sacramento, and Woodland, and the Counties of Sacramento and Yolo that have annexed to RT; and,

   4. A city incorporated on or after January 1, 2016, in which the city consists entirely of territory that was included in RT prior to the city's incorporation.

2. Prohibited RT's boundaries from being affected by the incorporation of any territory wholly or partly within RT's boundaries or by annexation to or detachment from any city or territory wholly or partly within RT's boundaries, except as follows:

   1. If a city is included in RT and annexes territory outside RT's boundaries, then that territory is deemed incorporated and annexed into RT, upon completion of the city annexation proceeding; and,

   2. If territory partly within and partly outside RT is incorporated as a new city, on or after January 1, 2016, then the new city is deemed incorporated into and annexed into RT, upon completion of the city incorporation proceeding.

3. Provided that territory deemed incorporated and annexed to RT, pursuant to 1) and 2) above, shall be subject to taxation, in accordance with the assessable valuation of the property in that territory for general district purposes and for payment of any indebtedness incurred by RT, as specified.

4. Repealed a provision in existing law which governs the annexation process for a city or county to become part of RT which required written request by that city or county and approval by Sacramento Area Council of Governments, and instead, establishes a negotiated annexation process.

5. Authorized RT to detach territory within its boundaries by a supermajority vote of the Board, and by a majority vote of the governing body of the territory proposed to be detached, as specified.

6. Made conforming changes to the definition of "member entity" in RT's Act to mean a city or county that is within the boundaries of RT as defined in 1) above.

FISCAL EFFECT: None

COMMENTS:

1. RT. The Legislature authorized the creation of the Sacramento Regional Transit District in 1971 to operate a comprehensive public transportation system for the Sacramento region. RT serves an area encompassing 418 square miles and 1.4 million people; it operates 67 bus routes and 38.6 miles of light rail service. RT is governed by an 11-member Board of Directors comprised of eight directors that are appointed by the annexed jurisdictions, which are "member entities," including Sacramento County, and the Cities of Sacramento and Rancho Cordova. Additionally, three directors are appointed by non-annexed jurisdictions, which are "participating entities," including the Cities of Citrus Heights, Elk Grove, and Folsom. Board members vote based on a weighted vote system established by AB 2137 (Niello), Chapter 227, Statutes of 2008, which is based upon the type of membership and the financial contribution made by each entity to RT.

2. Bill Summary. This bill makes several changes to the way RT's boundaries may be changed by establishing a new process for annexation and detachment of territory.

Current law allows any city or county to annex and become part of RT upon approval of the Board, if the request is made in writing by the city or county, and the Sacramento Area Council of Governments approves the annexation. This bill repeals this provision of law and establishes a new annexation process for RT. This bill authorizes RT and the legislative body of a city or county proposed to be annexed to agree in writing on the terms and conditions for annexation. This process is already contained in statute for several other transit districts.

Under current law, if a new city incorporated entirely within the territory of RT, the new city council would need to annex back into the district to activate their membership as a member entity. Under this bill, if a new city incorporates after January 1, 2016, and is entirely within RT's boundaries or includes any territory within RT's boundaries, that city would automatically be annexed to RT as a member entity. Additionally, this bill authorizes RT to detach territory within its boundaries with a vote of 80% of the non-weighted Board and a majority vote of the governing body of the territory proposed to be detached.

Senate amendments address concerns expressed by the City of Elk Grove to exclude territory from RT's boundaries in the unincorporated area of Sacramento County south of Elk Grove that is entirely disconnected from RT and provides a specified detachment process for territory within RT's boundaries that may be annexed to a city that is not a member entity, like the City of Elk Grove.

This bill is sponsored by RT.

3. Author's Statement. According to the author, "The purpose of this bill is two-fold: 1) A number of jurisdictions presently contract with RT for service (the Cities of Citrus Heights, Folsom, and Elk Grove). As contracting parties, these jurisdictions are able to maintain a degree of control over the operations of service within their boundaries; these jurisdictions have expressed reluctance to annex to RT and cede control over service that is of benefit to their citizens. Addition of a provision for a negotiated annexation would permit RT and the affected jurisdiction to negotiate an annexation agreement that might commit RT to certain service levels and amenities; 2) The other concern this bill addresses is future incorporation of areas within RT's present boundaries. RT has made significant capital investments in bus and rail transit facilities within its present boundaries and its operations are designed to provide efficient transportation within those boundaries. As RT's Act is presently written, a newly incorporated area must affirmatively act to annex to RT to remain within its boundaries. To protect RT's existing investments in these areas and the integrity of its existing transit network, this bill would specify that these areas remain a part of RT notwithstanding a new incorporation."

4. Arguments in Support. Supporters argue that this bill addresses issues unique to the manner in which cities and counties may activate their participation with RT.

5. Arguments in Opposition. None on file.

Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958 FN: 0001295

 THIRD READING  

Bill No: AB 738

Author: Beth Gaines (R)

Amended: 7/16/15 in Senate

Vote: 21

SENATE TRANS. & HOUSING COMMITTEE: 11-0, 7/14/15

AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski

ASSEMBLY FLOOR: 75-0, 5/22/15 - See last page for vote

SUBJECT: Sacramento Regional Transit District

SOURCE: Sacramento Regional Transit District

DIGEST: This bill recasts membership in the Sacramento Regional Transit District and redefines the boundaries of the District.

ANALYSIS:

Existing law:

1. Establishes the Sacramento Regional Transit (Sacramento RT) District to operate a single unified public transportation system in the Sacramento region in order to meet the present and future public transportation, and mass and rapid transit, needs of the region.

2. Defines member entities of the Sacramento RT District as cities or counties that are annexed to the district.

3. Enables any city or county to annex and become part of the Sacramento RT District following a written request by that city or county and upon approval by the Sacramento Area Council of Governments.

4. Defines the boundaries of the Sacramento RT District as:

1. All of the areas of any eligible cities in which a city council has declared the need for the district to operate; and

2. Any of the area of a county described in statute within which a board of supervisors has declared the need for the district to operate.

5. Enables Sacramento RT to operate and exercise its powers within any city or county.

6. Restricts Sacramento RT from levying an ad valorem property tax within the boundaries of any city or county unless that city council or county board of supervisors declares that there is a need for Sacramento RT to levy a tax within its boundaries.

This bill:

1. Defines member entities of Sacramento RT as any city or county within the district boundaries.

2. Determines the boundaries of Sacramento RT to include:

1. The cities of Sacramento and Rancho Cordova;

2. The unincorporated territory of Sacramento County within the urban service area, as determined by the Board of Supervisors, and not otherwise divided from the rest of the unincorporated territory by an incorporated city; and

3. An eligible city or county that has annexed to the district.

3. Requires that any territory annexed into a city currently included in Sacramento RT also be included in the district.

If a territory within the boundaries of Sacramento RT is annexed to any city that is not a member entity, that territory shall remain part of the district unless no transit service is operated or planned by the district within or near that annexed territory, as defined, subject to a determination by the Sacramento County Local Agency Formation Commission.

4. Requires any new city incorporated on or after January 1, 2016, which has any territory within Sacramento RT boundaries, to be annexed wholly into the district.

5. Declares that any territory included within the district boundaries of Sacramento RT is subject to taxation in accordance with the assessable valuation of the property and that revenue can be used for general purposes and for payment of any district indebtedness.

6. Restricts Sacramento RT from levying an ad valorem property tax on any territory that is not within the district boundaries.

7. Requires the legislative body of any city or county that wishes to be annexed into Sacramento RT to agree in writing upon terms and conditions of annexation with the district’s board of directors.

8. Eliminates the Sacramento Area Council of Governments’ approval of annexation of any new territory to the district.

9. Requires any territory wishing to detach from the district to obtain a supermajority vote of 80% of the district’s board of directors, and a majority of its governing body, in order to no longer be part of the district.

10. Holds any territory that detaches from the district responsible for taxation for the payment of any bonded indebtedness existing at the time of detachment.

Background

Sacramento RT. The Legislature authorized the creation of the Sacramento RT District in 1971 to operate a comprehensive public transportation system for the Sacramento region.

Sacramento RT serves an area encompassing 418 square miles and 1.4 million people; it operates 67 bus routes and 38.6 miles of light rail service. Sacramento RT is governed by an 11-member board of directors comprised of eight directors that are appointed by the member entities, including Sacramento County and the cities of Sacramento and Rancho Cordova. Additionally, three directors are appointed by non-annexed jurisdictions, which are “participating entities,” including the cities of Citrus Heights, Elk Grove, and Folsom. Board members vote based on a weighted vote system established by AB 2137 (Niello, Chapter 227, Statutes of 2008), which is based upon the type of membership and the financial contribution made by each entity to the district.

Comments

Purpose. According to the author, this bill is attempting to resolve a few problems created by existing law. First, some jurisdictions in Sacramento County, specifically the cities of Folsom, Citrus Heights, and Elk Grove, contract for service with Sacramento RT but are reluctant to annex into the district for fear of losing some existing degree of control over the operations of service within their boundaries. This bill allows entities to negotiate their relationships to Sacramento RT before annexing into the district and therefore allay some concerns. Second, Sacramento RT has invested in some currently unincorporated areas of Sacramento County, and to protect those investments this bill specifies that those areas remain part of the district notwithstanding any new city incorporations in the future. Finally, this bill creates a mechanism for a member city to leave the district if it wishes, which is currently not possible under existing law.

Concerns Resolved. Earlier concerns by the City of Elk Grove have been resolved. The City is now neutral.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 8/11/15)

Sacramento Regional Transit District (source)

OPPOSITION: (Verified 8/11/15)

None received

ASSEMBLY FLOOR: 75-0, 5/22/15

AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Alejo, O'Donnell, Olsen, Waldron, Weber

Prepared by: Randy Chinn & Eric Thronson / T. & H. / (916) 651-4121

8/13/15 13:10:14

**** END ****

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2015 - 2016 Regular

Bill No: AB 738 Hearing Date: 7/14/2015

SUBJECT: Sacramento Regional Transit District

DIGEST: This bill recasts membership in the Sacramento Regional Transit District and redefines the boundaries of the District.

ANALYSIS:

Existing law:

1. Establishes the Sacramento Regional Transit (Sacramento RT) District to operate a single unified public transportation system in the Sacramento region in order to meet the present and future public transportation, and mass and rapid transit, needs of the region.

2. Defines member entities of the Sacramento RT District as cities or counties that are annexed to the district.

3. Enables any city or county to annex and become part of the Sacramento RT District following a written request by that city or county and upon approval by the Sacramento Area Council of Governments.

4. Defines the boundaries of the Sacramento RT District as:

1. All of the areas of any eligible cities in which a city council has declared the need for the district to operate; and

2. Any of the area of a county described in statute within which a board of supervisors has declared the need for the district to operate.

5. Enables Sacramento RT to operate and exercise its powers within any city or county.

6. Restricts Sacramento RT from levying an ad valorem property tax within the boundaries of any city or county unless that city council or county board of supervisors declares that there is a need for Sacramento RT to levy a tax within its boundaries.

This bill:

1. Defines member entities of Sacramento RT as any city or county within the district boundaries.

2. Determines the boundaries of Sacramento RT to include:

1. The cities of Sacramento and Rancho Cordova

2. The unincorporated territory of Sacramento County within the urban service area, as determined by the Board of Supervisors

3. An eligible city or county that has annexed to the district

3. Requires that any territory annexed into a city currently included in Sacramento RT also be included in the district.

4. Requires any new city incorporated on or after January 1, 2016, which has any territory within Sacramento RT boundaries, to be annexed wholly into the district.

5. Declares that any territory included within the district boundaries of Sacramento RT is subject to taxation in accordance with the assessable valuation of the property and that revenue can be used for general purposes and for payment of any district indebtedness.

6. Restricts Sacramento RT from levying an ad valorem property tax on any territory that is not within the district boundaries.

7. Requires the legislative body of any city or county that wishes to be annexed into Sacramento RT to agree in writing upon terms and conditions of annexation with the district’s board of directors.

8. Eliminates the Sacramento Area Council of Governments’ approval of annexation of any new territory to the district.

9. Requires any territory wishing to detach from the district to obtain a supermajority vote of 80%of the district’s board of directors, and a majority of its governing body, in order to no longer be part of the district.

10. Holds any territory that detaches from the district responsible for taxation for the payment of any bonded indebtedness existing at the time of detachment.

COMMENTS:

1. Purpose. According to the author, this bill is attempting to resolve a few problems created by existing law. First, some jurisdictions in Sacramento County, specifically the cities of Folsom, Citrus Heights, and Elk Grove, contract for service with Sacramento RT but are reluctant to annex into the district for fear of losing some existing degree of control over the operations of service within their boundaries. This bill allows entities to negotiate their relationships to Sacramento RT before annexing into the district and therefore allay some concerns. Second, Sacramento RT has invested in some currently unincorporated areas of Sacramento County, and to protect those investments this bill specifies that those areas remain part of the district notwithstanding any new city incorporations in the future. Finally, this bill creates a mechanism for a member city to leave the district if it wishes, which is currently not possible under existing law.

2. Sacramento RT Background. The Legislature authorized the creation of the Sacramento RT District in 1971 to operate a comprehensive public transportation system for the Sacramento region.

Sacramento RT serves an area encompassing 418 square miles and 1.4 million people; it operates 67 bus routes and 38.6 miles of light rail service. Sacramento RT is governed by an 11-member board of directors comprised of eight directors that are appointed by the member entities, including Sacramento County and the cities of Sacramento and Rancho Cordova. Additionally, three directors are appointed by non-annexed jurisdictions, which are “participating entities,” including the cities of Citrus Heights, Elk Grove, and Folsom. Board members vote based on a weighted vote system established by AB 2137 (Niello, Chapter 227, Statutes of 2008), which is based upon the type of membership and the financial contribution made by each entity to the district.

3. Concerns. The City of Elk Grove has an “oppose unless amended” position on this bill, and raises several areas of concern. First, it believes this bill creates challenges for the city’s planned future annexations and the service area for Elk Grove’s own transit service. Second, Elk Grove strongly objects to this bill granting Sacramento RT the ability to levy and keep an ad valorem property tax in the unincorporated area of Sacramento County. If Elk Grove ever annexes more land that had an ad valorem property tax associated with it, the City expects to take over that property tax.

Elk Grove states that it has no intention of annexing into Sacramento RT. Any future land Elk Grove annexes will become part of the city’s own transit service. Elk Grove’s oppose letter suggests that this bill threatens Elk Grove’s ability to grow, and at the same time, expand its own transit service. For example, this bill will include in Sacramento RT’s boundary a portion of Sacramento County south of Elk Grove that is entirely disconnected from the rest of Sacramento RT by the City of Elk Grove’s boundary. It seems reasonable for Elk Grove to want this portion of Sacramento County to be excluded from Sacramento RT’s district, given that Sacramento RT does not provide service to this area and would have to travel through Elk Grove to do so. Further, it doesn’t appear that Sacramento RT intends to limit Elk Grove’s ability to grow and provide its own service. In light of this, the committee and author may wish to amend the bill to resolve Elk Grove’s growth issues as well as exclude the detached portion of Sacramento County from Sacramento RT’s district boundary.

Related Legislation:

AB 906 (Cooper) — specifies that the City of Elk Grove’s obligation to pay its proportionate share for transit service provided by Sacramento RT is fully satisfied by the district’s receipt of revenues from a countywide sales tax measure dedicated to transit service. This bill is also being heard in this committee today.

Assembly Votes:

Floor: 75-0

LGov: 9-0

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

POSITIONS: (Communicated to the committee before noon on Wednesday,

July 8, 2015.)

SUPPORT:

Sacramento Regional Transit District

OPPOSITION:

City of Elk Grove -- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 738

Author:(Beth Gaines)

As Amended Ver:May 11, 2015

Majority vote

SUMMARY: Makes changes to Sacramento Regional Transit District's (RT) boundaries and establishes a new process for the annexation and detachment of territory. Specifically, this bill:

1. Repeals existing law which governs RT boundaries, and instead, requires RT's boundaries to include the following:

   1. The Cities of Sacramento and Rancho Cordova;

   2. The unincorporated territory of Sacramento County that is within the urban service area, as determined by the Board of Supervisors;

   3. The Cities of Citrus Heights, Elk Grove, Davis, Folsom, Rancho Cordova, Roseville, Sacramento, West Sacramento, and Woodland, and the Counties of Sacramento and Yolo that have annexed to RT; and,

   4. A city incorporated on or after January 1, 2016, in which the city consists entirely of territory that was included in RT prior to the city's incorporation.

2. Prohibits RT's boundaries from being affected by the incorporation of any territory wholly or partly within RT's boundaries or by annexation to or detachment from any city or territory wholly or partly within RT's boundaries, except as follows:

   1. If a city is included in RT and annexes territory outside RT's boundaries, then that territory is deemed incorporated and annexed into RT, upon completion of the city annexation proceeding; and,

   2. If territory partly within and partly outside RT is incorporated as a new city, on or after January 1, 2016, then the new city is deemed incorporated into and annexed into RT, upon completion of the city incorporation proceeding.

3. Provides that territory deemed incorporated and annexed to RT, pursuant to 1) and 2) above, shall be subject to taxation, in accordance with the assessable valuation of the property in that territory for general district purposes and for payment of any indebtedness incurred by RT, as specified.

4. Prohibits RT from levying an ad valorem property tax within the boundaries of any city that is not within RT's boundaries.

5. Prohibits RT from levying an ad valorem property tax in all or part of an unincorporated area of any county, if the unincorporated area is not within RT's boundaries.

6. Repeals a provision in existing law which governs the annexation process for a city or county to become part of RT which required written request by that city or county and approval by Sacramento Area Council of Governments, and instead, establishes a negotiated annexation process.

7. Allows any city or county listed in 1) above, to be annexed to RT in the manner provided in 8) below.

8. Requires the legislative body of the city or county proposed to be annexed to agree in writing with RT's board of directors (Board) upon the terms and conditions of annexation. The agreement, among other things, may provide for the levy and collection of special taxes within the city or unincorporated area of the county, the fixing of rates, rentals, and charges differing from elsewhere in the district, and the transfer of property.

9. Authorizes RT to detach territory within its boundaries by a supermajority vote of the Board, which shall be at least 80% of the non-weighted vote of the existing Board, and by a majority vote of the governing body of the territory proposed to be detached, provided that the detached territory shall not be relieved from liability for taxation for the payment of any bonded indebtedness existing at the time of detachment, and provided that all other pending legal and financial obligations have been resolved by mutual agreement.

10. Provides that the detachment of territory from RT shall be effective upon giving the notice to the Board of Equalization and the county assessor as required by current law for local agency formation commissions to file boundary changes.

11. Requires notice of the detachment of territory from RT to be given to each assessor whose roll is used for a tax levy, as specified.

12. Makes conforming changes to the definition of "member entity" in RT's Act to mean a city or county that is within the boundaries of RT as defined in 1) above.

EXISTING LAW:

1. Establishes the Sacramento Regional Transit District Act (Act) which governs the powers and functions of RT, and establishes RT's territory and Board.

2. Provides that RT shall be formed upon the adoption of a resolution by the City Council of Sacramento and by the Sacramento County Board of Supervisors declaring there is a need for RT.

3. Authorizes RT to comprise the Cities of Citrus Heights, Elk Grove, Davis, Folsom, Rancho Cordova, Roseville, Sacramento, West Sacramento, and Woodland, and specified territory in the Counties of Sacramento and Yolo to the extent they are not included in the above-mentioned cities.

4. Provides any city or county may annex to and become part of RT upon approval by the Board following a written request by that city or county and the approval of the Sacramento Area Council of Governments.

5. Requires RT's boundaries, at any point in time, to include:

1. All the area of any city eligible to participate as defined in 3) or 4) above, in which the governing body has declared a need for RT to operate; and,

2. That area of any county eligible to participate under 3) or 4) above, within which the governing body has declared a need for RT to operate.

6. Authorizes RT to operate and exercise its powers within any city provided that RT has no power to levy an ad valorem property tax within the boundaries of any city, unless the city council adopts a resolution declaring there is a need for RT to operate and levy a tax within the city boundaries.

7. Authorizes RT to operate and exercise its powers within all or part of the unincorporated area of any county provided that RT has no power to levy an ad valorem property tax within any unincorporated area, unless the board of supervisors of the county adopts a resolution declaring a need for RT to operate and levy a tax within the unincorporated area of the county.

8. Specifies that a city or county that is not annexed to RT may become a participating entity that is entitled to make at least one appointment to the Board, if they enter into an agreement with RT to pay their proportional share of RT's cost to provide rail or other district-wide transit services to the entity and the District agrees to maintain a specified level of services and is not obligated to provide transit services along any particular route or location.

9. Defines "member entity" to mean a city or county that is annexed to RT pursuant to 2), 3), or 4) above. Defines "member entities" to mean all those cities and counties.

10. Defines "participating entity" to mean a city or county that is not annexed to RT, but has entered into a specified agreement to pay its proportional share of RT's cost to provide rail or other district-wide transit services to the entity.

FISCAL EFFECT: None

COMMENTS:

1. RT. The Legislature authorized the creation of the Sacramento Regional Transit District in 1971 to operate a comprehensive public transportation system for the Sacramento region. RT serves an area encompassing 418 square miles and 1.4 million people; it operates 67 bus routes and 38.6 miles of light rail service. RT is governed by an 11-member Board of Directors comprised of eight directors that are appointed by the annexed jurisdictions, which are "member entities," including Sacramento County, and the Cities of Sacramento and Rancho Cordova. Additionally, three directors are appointed by non-annexed jurisdictions, which are "participating entities," including the Cities of Citrus Heights, Elk Grove, and Folsom. Board members vote based on a weighted vote system established by AB 2137 (Niello), Chapter 227, Statutes of 2008, which is based upon the type of membership and the financial contribution made by each entity to RT.

2. Bill Summary. This bill makes several changes to the way RT's boundaries may be changed by establishing a new process for annexation and detachment of territory.

Current law allows any city or county to annex and become part of RT upon approval of the Board, if the request is made in writing by the city or county, and the Sacramento Area Council of Governments approves the annexation. This bill repeals this provision of law and establishes a new annexation process for RT. This bill authorizes RT and the legislative body of a city or county proposed to be annexed to agree in writing on the terms and conditions for annexation. This process is already contained in statute for several other transit districts. Under this bill, the agreement for annexation may include the fixing of rates or charges, the transfer of property, or provide for the levy and collection of special taxes. The annexation process would apply to any city listed in the territory defined in RT's enabling act, which means the Cities of Citrus Heights, Elk Grove, Davis, Folsom, Roseville, West Sacramento, Woodland and specified territory in the Counties of Sacramento and Yolo could be annexed pursuant to this process. If a city or county wanted to be annexed to RT and they weren't listed in RT's enabling act, they would need to modify statute.

Under current law, if a new city incorporated entirely within the territory of RT, the new city council would need to annex back into the district to activate their membership as a member entity. Under this bill, if a new city incorporates after January 1, 2016, and is entirely within RT's boundaries or includes any territory within RT's boundaries, that city would automatically be annexed to RT as a member entity. Additionally, this bill authorizes RT to detach territory within its boundaries with a vote of 80% of the non-weighted Board and a majority vote of the governing body of the territory proposed to be detached.

This bill is sponsored by RT.

3. Author's Statement. According to the author, "The purpose of this bill is two-fold: 1) A number of jurisdictions presently contract with RT for service (the Cities of Citrus Heights, Folsom, and Elk Grove). As contracting parties, these jurisdictions are able to maintain a degree of control over the operations of service within their boundaries; these jurisdictions have expressed reluctance to annex to RT and cede control over service that is of benefit to their citizens. Addition of a provision for a negotiated annexation would permit RT and the affected jurisdiction to negotiate an annexation agreement that might commit RT to certain service levels and amenities; 2) The other concern this bill addresses is future incorporation of areas within RT's present boundaries. RT has made significant capital investments in bus and rail transit facilities within its present boundaries and its operations are designed to provide efficient transportation within those boundaries. As RT's Act is presently written, a newly incorporated area must affirmatively act to annex to RT to remain within its boundaries. To protect RT's existing investments in these areas and the integrity of its existing transit network, this bill would specify that these areas remain a part of RT notwithstanding a new incorporation."

4. Arguments in Support. Supporters argue that this bill addresses issues unique to the manner in which cities and counties may activate their participation with RT.

5. Arguments in Opposition. None on file.

Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958 FN: 0000373

Date of Hearing: May 6, 2015

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Brian Maienschein, Chair

ABPCA Bill Id:AB 738

Author:(Beth Gaines) – As Amended Ver:April 6, 2015

SUBJECT: Sacramento Regional Transit District.

SUMMARY: Makes changes to Sacramento Regional Transit District's (RT) boundaries and establishes a new process for the annexation and detachment of territory. Specifically, this bill:

1. Repeals existing law which governs RT boundaries, and instead, requires RT's boundaries to include the following:

   1. The cities of Sacramento and Rancho Cordova;

   2. The unincorporated territory of Sacramento County that is within the urban service area, as determined by the Board of Supervisors;

   3. The cities of Citrus Heights, Elk Grove, Davis, Folsom, Rancho Cordova, Roseville, Sacramento, West Sacramento, and Woodland, and the counties of Sacramento and Yolo that have annexed to RT; and,

   4. A city incorporated on or after January 1, 2016, in which the city consists entirely of territory that was included in RT prior to the city's incorporation.

2. Prohibits RT's boundaries from being affected by the incorporation of any territory wholly or partly within RT's boundaries or by annexation to or detachment from any city or territory wholly or partly within RT's boundaries, except as follows:

   1. If a city is included in RT and annexes territory outside RT's boundaries, then that territory is deemed incorporated and annexed into RT, upon completion of the city annexation proceeding; and,

   2. If territory partly within and partly outside RT is incorporated as a new city, on or after January 1, 2016, then the new city is deemed incorporated into and annexed into RT, upon completion of the city incorporation proceeding.

3. Provides that territory deemed incorporated and annexed to RT, pursuant to 1), and 2), above, shall be subject to taxation, in accordance with the assessable valuation of the property in that territory for general district purposes and for payment of any indebtedness incurred by RT, as specified.

4. Prohibits RT from levying an ad valorem property tax within the boundaries of any city that is not within RT's boundaries.

5. Prohibits RT from levying an ad valorem property tax in all or part of an unincorporated area of any county, if the unincorporated area is not within RT's boundaries.
   
   
   

6. Repeals a provision in existing law which governs the annexation process for a city or county to become part of RT which required written request by that city or county and approval by Sacramento Area Council of Governments, and instead, establishes a negotiated annexation process.

7. Allows any city or county listed in 1), above, to be annexed to RT in the manner provided in 8), below.

8. Requires the legislative body of the city or county proposed to be annexed to agree in writing with RT's board of directors (Board) upon the terms and conditions of annexation. The agreement, among other things, may provide for the levy and collection of special taxes within the city or unincorporated area of the county, the fixing of rates, rentals, and charges differing from elsewhere in the district, and the transfer of property.

9. Authorizes RT to detach territory within its boundaries by a supermajority vote of the Board, which shall be at least 80% of the non-weighted vote of the existing Board, provided that the detached territory shall not be relieved from liability for taxation for the payment of any bonded indebtedness existing at the time of detachment, and provided that all other pending legal and financial obligations have been resolved by mutual agreement.

10. Provides that the detachment of territory from RT shall be effective upon giving the notice to the Board of Equalization and the county assessor as required by current law for local agency formation commissions to file boundary changes.

11. Requires notice of the detachment of territory from RT to be given to each assessor whose roll is used for a tax levy, as specified.

12. Makes conforming changes to the definition of "member entity" in RT's Act to mean a city or county that is within the boundaries of RT as defined in 1), above.

EXISTING LAW:

1. Establishes the Sacramento Regional Transit District Act (Act) which governs the powers and functions of RT, and establishes RT's territory and Board.

2. Provides that RT shall be formed upon the adoption of a resolution by the City Council of Sacramento and by the Sacramento County Board of Supervisors declaring there is a need for RT.

3. Authorizes RT to comprise the cities of Citrus Heights, Elk Grove, Davis, Folsom, Rancho Cordova, Roseville, Sacramento, West Sacramento, and Woodland, and specified territory in Sacramento and Yolo counties to the extent they are not included in the above-mentioned cities.

4. Provides any city or county may annex to and become part of RT upon approval by the Board following a written request by that city or county and the approval of the Sacramento Area Council of Governments.
   
   
   
   

5. Requires RT's boundaries, at any point in time, to include:

1. All the area of any city eligible to participate as defined in 3), or 4), above, in which the governing body has declared a need for RT to operate; and,

2. That area of any county eligible to participate under 3), or 4), above, within which the governing body has declared a need for RT to operate.

6. Authorizes RT to operate and exercise its powers within any city provided that RT has no power to levy an ad valorem property tax within the boundaries of any city, unless the city council adopts a resolution declaring there is a need for RT to operate and levy a tax within the city boundaries.

7. Authorizes RT to operate and exercise its powers within all or part of the unincorporated area of any county provided that RT has no power to levy an ad valorem property tax within any unincorporated area, unless the board of supervisors of the county adopts a resolution declaring a need for RT to operate and levy a tax within the unincorporated area of the county.

8. Specifies that a city or county that is not annexed to RT may become a participating entity that is entitled to make at least one appointment to the Board, if they enter into an agreement with RT to pay their proportional share of RT's cost to provide rail or other district-wide transit services to the entity and the District agrees to maintain a specified level of services and is not obligated to provide transit services along any particular route or location.

9. Defines "member entity" to mean a city or county that is annexed to RT pursuant to 2), 3), or 4), above. Defines "member entities" to mean all those cities and counties.

10. Defines "participating entity" to mean a city or county that is not annexed to RT, but has entered into a specified agreement to pay its proportional share of RT's cost to provide rail or other district-wide transit services to the entity.

FISCAL EFFECT: None

COMMENTS:

1. RT. The Legislature authorized the creation of the Sacramento Regional Transit District in 1971 to operate a comprehensive public transportation system for the Sacramento region.
   RT serves an area encompassing 418 square miles and 1.4 million people; it operates 67 bus routes and 38.6 miles of light rail service. RT is governed by an 11-member Board of Directors comprised of eight directors that are appointed by the annexed jurisdictions, which are "member entities," including Sacramento County, and the cities of Sacramento and Rancho Cordova. Additionally, three directors are appointed by non-annexed jurisdictions, which are "participating entities," including the cities of Citrus Heights, Elk Grove, and Folsom. Board members vote based on a weighted vote system established by AB 2137 (Niello), Chapter 227, Statutes of 2008, which is based upon the type of membership and the financial contribution made by each entity to RT.

2. Bill Summary. This bill makes several changes to the way RT's boundaries may be changed by establishing a new process for annexation and detachment of territory.

Current law allows any city or county to annex and become part of RT upon approval of the Board, if the request is made in writing by the city or county, and the Sacramento Area Council of Governments approves the annexation. This bill repeals this provision of law and establishes a new annexation process for RT. This bill authorizes RT and the legislative body of a city or county proposed to be annexed to agree in writing on the terms and conditions for annexation. This process is already contained in statute for several other transit districts. Under this bill, the agreement for annexation may include the fixing of rates or charges, the transfer of property, or provide for the levy and collection of special taxes. The annexation process would apply to any city listed in the territory defined in RT's enabling act, which means the cities of Citrus Heights, Elk Grove, Davis, Folsom, Roseville, West Sacramento, Woodland and specified territory in Sacramento and Yolo counties could be annexed pursuant to this process. If a city or county wanted to be annexed to RT and they weren't listed in RT's enabling act, they would need to modify statute.

Under current law, if a new city incorporated entirely within the territory of RT, the new city council would need to annex back into the district to activate their membership as a member entity. Under this bill, if a new city incorporates after January 1, 2016, and is entirely within RT's boundaries or includes any territory within RT's boundaries, that city would automatically be annexed to RT as a member entity. Also mirroring existing law for other transit districts, this bill authorizes RT to detach territory within its boundaries with a vote
of 80% of the non-weighted Board.

This bill is sponsored by RT.

3. Author's Statement. According to the author, "The purpose of this bill is two-fold: 1) A number of jurisdictions presently contract with RT for service (the cities of Citrus Heights, Folsom, and Elk Grove). As contracting parties, these jurisdictions are able to maintain a degree of control over the operations of service within their boundaries; these jurisdictions have expressed reluctance to annex to RT and cede control over service that is of benefit to their citizens. Addition of a provision for a negotiated annexation would permit RT and the affected jurisdiction to negotiate an annexation agreement that might commit RT to certain service levels and amenities; 2) The other concern this bill addresses is future incorporation of areas within RT's present boundaries. RT has made significant capital investments in bus and rail transit facilities within its present boundaries and its operations are designed to provide efficient transportation within those boundaries. As RT's Act is presently written, a newly incorporated area must affirmatively act to annex to RT to remain within its boundaries. To protect RT's existing investments in these areas and the integrity
   of its existing transit network, this bill would specify that these areas remain a part of RT notwithstanding a new incorporation."

4. Policy Consideration. The Committee may wish to consider, even with the 80% non-weighted vote threshold to detach territory, if it would be possible for the Board to detach territory without that territory's consent. If so, the author and sponsor may wish to consider, if there should be sign-off from both RT's Board and the governing body of the territory proposed to be detached.

5. Arguments in Support. Supporters argue that this bill addresses issues unique to the manner in which cities and counties may activate their participation with RT.

6. Arguments in Opposition. None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

Sacramento Regional Transit District [SPONSOR]

Opposition

None on file

Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958