BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1010
                                                                  Page  1

          Date of Hearing:  June 28, 2006

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Simon Salinas, Chair
                    SB 1010 (Florez) - As Amended:  June 26, 2006

           SENATE VOTE  :  33-3
           
          SUBJECT  :  Rail service: City of Shafter.

           SUMMARY  :  Authorizes the City of Shafter to assign the functions  
          of an intermodal rail facility to an intermodal rail commission.  
           Specifically,  this bill  :   

          1)States that the legislative body of the City of Shafter may,  
            by ordinance, assign the functions of an intermodal rail  
            facility to an intermodal rail commission (Commission). 

          2)Specifies that the Commission will serve as an advisory body  
            of the City of Shafter in all matters pertaining to the  
            California Integrated Logistics Center or other intermodal  
            rail facilities operated by the City of Shafter. 

          3)Requires the Commission to perform the following functions:

             a)   Evaluate and recommend operating and capital  
               expenditures;

             b)   Evaluate and recommend capital improvement projects;

             c)   Evaluate and recommend business expansion or  
               contraction;

             d)   Undertake strategic planning regarding the operation and  
               maintenance of the California Integrated Logistics Center  
               or other intermodal rail facilities operated by the City of  
               Shafter;

             e)   Evaluate and recommend changes to rates or related  
               rate-setting matters; and 

             f)   Represent the City of Shafter at private and public  
               meetings and conferences. 

          4)States that the legislative body of the City of Shafter may  








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            specify the membership of the Commission. 

          5)Requires that terms of office, qualifications, and method of  
            appointment and removal of Commissioners be established by  
            ordinance. 

          6)Specifies that the Commission shall consist of at least five  
            members, all of whom shall act in the public interest.  

          7)Authorizes the legislative body of the City of Shafter to  
            establish rules, procedures, or standards for the Commission  
            that do not conflict with state or federal laws. 

          8)Specifies that Commissioners shall receive reimbursement for  
            their actual and necessary expenses incurred in the  
            performance of official duties.

          9)Specifies that the Legislative body may provide a stipend to  
            Commissioners that shall not exceed $75 per meeting. 

          10)Prohibits Commissioners from receiving a stipend for more  
            than two meetings per month. 

          11)Requires the City of Shafter to provide the funds, equipment,  
            and accommodations necessary or appropriate for the work of  
            the Commission.

          12)Specifies that if the City of Shafter establishes any fees to  
            support the work of an intermodal rail commission, the fees  
            may not exceed the reasonable costs of providing a service for  
            which the fee is charged. 

          13)Requires the operations of the Commission to follow the Ralph  
            M. Brown Act. 

          14)Makes all documents of the Commission subject to the Public  
            Records Act. 

          15)Specifies that the Commission is subject to the Political  
            Reform Act.  

           EXISTING LAW  :

          1)Specifies that a city council may not provide additional  
            compensation, beyond the salary city council members currently  








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            receive, to any of its members unless that additional  
            compensation is authorized by statute and limits the amount of  
            compensation a commissioner may receive for serving on a  
            community development commission.

          2)Authorizes a city council to establish a planning commission  
            and other advisory bodies.  

          3)Requires, under the Ralph M. Brown Act, that meetings and  
            actions taken by a local government be done in public. 

          4)Authorizes municipal corporations to acquire, construct, own,  
            operate, or lease any public utility and defines public  
            utility as including the transportation of persons or  
            property.

           FISCAL EFFECT :  Unknown

           COMMENTS  :   

          1)The California Integrated Logistics Center (CILC) is located  
            in Shafter, California.  According to the author's office, the  
            CILC is being designed to serve as a state-of-the-art  
            intermodal transportation facility that will allow businesses  
            throughout Central California to import and export goods to  
            the state's respective ports (Los Angeles, Long Beach and  
            Oakland). CILC is an inland hub that could serve as a vital  
            resource in California's continuing advancement and  
            development in the arena of goods movement.  Distribution  
            centers such as Ikea, Sears, Wal-Mart, VF Factory Stores, as  
            well as the region's dairy farmers and growers, would all  
            benefit from the CILC through their use of freight trains to  
            get goods out in a faster fashion. 
          2)The City of Shafter claims that it needs a commission to  
            govern the day-to-day operations 
          of the CILC.  It envisions the CILC to become a major intermodal  
            transportation import-export operation.  Shafter city  
            officials believe a commission is necessary to ensure that the  
            operations stay focused and professional.

          3)AB 1768 (Oropeza), Chapter 1127, Statutes of 2002,  
            appropriated $5 million to CalTrans 
          for a local assistance grant to Shafter to construct the  
            Southern San Joaquin Valley Intermodal Facility, a part of the  
            CILC.  This past December, ground was broken on the switching  








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            and rail spur for that project.  Shafter estimates project  
            completion by November 2006.

          4)This bill has been double-referred to the Committees on  
            Utilities and Commerce, where it passed with a 10-1 vote on  
            June 19, 2006, and Local Government. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          City of Shafter 
          Tejon Ranch Company
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  
          319-3958