BILL ANALYSIS 1 1 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE DEBRA BOWEN, CHAIRWOMAN AB 2511 - Dutra Hearing Date: June 25, 2002 A As Amended: June 24, 2002 Non-FISCAL B 2 5 1 1 DESCRIPTION This bill authorizes the Santa Clara Valley Transportation Authority (VTA) to take over utility relocation work related to a transit or transportation capital improvement project within its jurisdiction under the following circumstances: 1.VTA has a relocation agreement with the utility which allows VTA to assume the relocation work. 2.The utility has abandoned the relocation work. This bill authorizes VTA to hire workers other than the utility's employees to do the relocation work. If working for VTA is permitted by the applicable collective bargaining agreement, the utility is required to offer a right of first refusal to the utility's employees. If the utility's employees elect not to contract with VTA, VTA is then required to hire workers from a list provided by the utility and its collective bargaining representative, if they choose to provide a list. BACKGROUND A transportation project, like many other development projects, may require electric, gas, telephone or water utility facilities, or cable facilities to be relocated. These facilities are utility property and, ordinarily, the utility is responsible for relocating them. Sometimes a formal agreement with the project proponent is necessary, particularly if the project proponent will bear some of the expense. Utility facilities are typically located in public rights of way or in utility-held easements on private property. According to the author, transportation projects undertaken by VTA have been delayed because of utilities' inability or unwillingness to relocate utility facilities in a timely manner. Those particular issues have since been resolved, but VTA anticipates similar problems with future projects. According to the proponents, this bill is necessary because, while nothing in the law specifically prohibits VTA from undertaking utility relocation work, neither does VTA have specific statutory authority to do it. COMMENTS 1)Does VTA need any authority to do this? The VTA's enabling statute (Public Utilities Code Section 100000, et seq.) does not grant VTA specific authority to relocate utility facilities, but it does grant VTA fairly broad powers which would appear to include relocating utility facilities pursuant to an agreement with the utility that owned those facilities, or perhaps even pursuant to eminent domain if necessary. For example: 100115. The district may exercise any and all powers granted by any other law that, by its terms, is applicable to transit districts generally, to public agencies generally, or to any classification of districts or public agencies that includes a district of the type provided for in this part, but the district shall not exercise any power contrary to an express provision of this part. (No express provision of Part 12 of Division 10 of the Public Utilities Code prohibits VTA from relocating utilities.) 100120. The district may make contracts and enter into stipulations of any nature whatsoever, either in connection with eminent domain proceedings or otherwise, including, without limiting the generality of the foregoing, contracts and stipulations to indemnify and save harmless, to employ labor, and to do all acts necessary and convenient for the full exercise of the powers granted in this part. While there doesn't appear to be any limitation on VTA's powers which would prevent it from undertaking utility relocation work, VTA might argue that an express provision in statute would give it some comfort and perhaps save some time or avoid litigation. 2)Who should offer the right of first refusal? In the case of relocation work assumed by VTA, if working for VTA is permitted by the applicable collective bargaining agreement, this bill requires the utility to offer a right of first refusal for the work to the utility's employees. Since VTA would be the one offering the contract, not the utility, it seems more appropriate to require VTA to offer the right of first refusal, unless the intent is to have VTA contract with the utility, rather than directly with its employees. The author and the committee may wish to consider amending the bill to clarify this issue. ASSEMBLY VOTES Assembly Floor (67-0) Assembly Transportation Committee (17-0) POSITIONS Sponsor: Santa Clara Valley Transportation Authority Support: California State Association of Counties California Transit Association City of Moreno Valley Metropolitan Transportation Commission Orange County Transportation Authority Santa Cruz County Regional Transportation Commission Self-Help Counties Coalition Sempra Energy Oppose: City of Dana Point Lawrence Lingbloom AB 2511 Analysis Hearing Date: June 25, 2002