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 SB 1010 Page 2 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 SB 1010 Page 3 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 SB 1010 Page 4 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