Otay Mesa East Toll Facility Act - - CA Streets And Highways

Section § 31460

This law emphasizes the importance of international trade with Mexico for California's economy, particularly highlighting San Diego County's role. It recognizes that trade is crucial to the region, with Mexico being a major trading partner. The existing infrastructure near the border is insufficient, causing congestion and delays that hurt both the U.S. and Mexican economies. As a solution, the law encourages seeking new ways, including public toll systems, to enhance border transportation capacity and efficiency.

The Legislature finds and declares all of the following:

(a) It is essential for the economic well-being of, and the maintenance of a high quality of life in, San Diego County and the State of California that the people of the State of California receive the full benefits of international trade with Mexico.

(b) Trade is a critical component of the San Diego regional economy. Mexico is the United States’ third largest trading partner, after Canada and China, and California’s number one export market.

(c) Trade passing through San Diego County’s portion of the United States-Mexico border region benefits every state in the union and contributes over $11 billion to the California GDP, and $26 billion to the United States GDP.

(d) Commercial and passenger traffic between the United States and Mexico using California’s ports of entry is placing extreme demands on the state’s border transportation assets which were not designed for these purposes.

(e) Congestion at the border causes increased wait times, which in turn increases commercial and noncommercial vehicle emissions.

(f) Inadequate infrastructure capacity at the existing border crossings between San Diego County and Baja California currently creates traffic congestion and delays for crossborder personal trips and freight movements that cost the United States and Mexican economies an estimated $3.4 billion in foregone gross output and more than 88,000 jobs in 2016.

(g) Public revenues to provide for an efficient border region transportation system have not kept pace with the growth of traffic and goods crossing the international border with Mexico.

(h) The state must seek all reasonable alternatives to address unmet border transportation needs and to improve existing transportation facilities.

(i) Public toll transportation facilities should be encouraged to supplement limited public resources and to support the development of new transportation system capacity.

(j) The port of entry serves, among other things, as a related fixed facility to the public system of streets and roads that facilitates the movement of goods, people, and services.

international trade San Diego County border congestion Mexico economic impact United States-Mexico border California GDP infrastructure capacity border transportation traffic congestion emissions public toll transportation infrastructure funding border crossings trade partner

(Amended by Stats. 2022, Ch. 422, Sec. 1. (SB 985) Effective January 1, 2023.)

Section § 31461

This law is officially known as the Otay Mesa East Toll Facility Act. Anytime the term "act" is used in this chapter, it specifically refers to the Otay Mesa East Toll Facility Act.

This chapter may be cited as the Otay Mesa East Toll Facility Act. All references to the “act” in this chapter shall mean the Otay Mesa East Toll Facility Act.

Otay Mesa toll facility Act citation East Toll Facility legislation title naming conventions chapter reference Otay Mesa East toll roads transportation act San Diego border California toll facilities legal naming infrastructure legislation border crossing facility

(Added by Stats. 2008, Ch. 720, Sec. 1. Effective January 1, 2009.)

Section § 31462

This section provides definitions for terms used in a chapter concerning transportation projects managed by the San Diego Association of Governments (SANDAG). "Best value" refers to the balance of cost and other factors like features and performance when selecting proposals. The "Board" is SANDAG’s board of directors. "Bonds" are various forms of debt SANDAG can issue. The "Construction Manager/General Contractor method" involves hiring a contractor for both design and construction management. The "Corridor" refers to State Route 11 in San Diego County. "Costs" encompass all expenses related to project development, including land acquisition and construction. The "Department" is the Department of Transportation. "Design-build" is a single-phase process for project design and construction. "Design sequencing" allows for phased construction. An "Entity" can be any governmental or private organization involved in projects. A "Project" includes facilities to aid movement along specific corridors or at border entries. "Property" covers all assets needed for a project. "Toll" is any charge for using the corridor. A "Trustee" refers to financial institutions serving specific roles.

For purposes of this chapter, the following definitions shall apply:

(a) “Best value” means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the local agency and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the procuring agency, or a tradeoff between price and other specified factors.

(b) “Board” means the board of directors of SANDAG.

(c) “Bonds” means any bonds, notes, variable rate and variable maturity securities, and any other evidence of indebtedness issued pursuant to this chapter.

(d) “Construction Manager/General Contractor method” or “CMGC” means a project delivery method using a best value procurement process in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project. The execution of the design and the construction of the project may be in sequential phases or concurrent phases.

(e) “Construction manager” means a partnership, corporation, or other legal entity that is able to provide appropriately licensed contracting and engineering services as needed pursuant to a CMGC contract.

(f) “Corridor” means State Route 11 in the County of San Diego, as defined in Section 311.

(g) “Costs” includes the cost of construction or acquisition; the cost of the acquisition of all land, rights-of-way, property, rights, easements, and interests acquired by SANDAG for the construction; the cost of demolishing or removing any buildings or structures on land acquired, including the cost of acquiring any lands to which buildings or structures may be moved; the cost of all machinery and equipment, financing charges, interest before and during construction and, if considered advisable by SANDAG, costs of accounting, consulting, printing, advertising, and travel, cost of traffic estimates and of engineering and legal services, plans, specifications, surveys, estimates of cost and of revenues, and other expenses necessary or incident to determining the feasibility or practicability of constructing, repairing, or improving a project; administrative expenses; and such other expenses as may be necessary or incident to the construction, repair, or improvement of a project, the financing of the project, the placing and maintaining of a project in operation, and any payments to an entity to cover all or a portion of the costs described in this chapter. Any money paid or advanced to SANDAG with its approval for traffic surveys, borings, preparation of plans and specifications, and other engineering services in connection with the construction, repair, or improvement of a project shall be regarded as a part of the cost of a project and may be reimbursed out of the proceeds of the revenue bonds issued for a project as authorized in this chapter. Cost includes the cost to operate, maintain, repair, or improve a project.

(h) “Department” means the Department of Transportation.

(i) “Design-build” means a procurement process in which both the design and construction of a project are procured in a single phase.

(j) “Design sequencing” means a procurement process that enables the sequencing of design activities to permit each construction phase to commence when design for that phase is complete, instead of requiring the design for the entire project to be completed before commencing construction.

(k) “Entity” means the United States or any agency or department of the United States, any State of California agency, department or political subdivision of the state, or any public or private corporation, company, partnership, joint venture, foundation, trust, estate, individual, or other legal business organization.

(l) “Federal agency” means any agency or department of the United States.

(m) “Project” or “projects” means any property and related facilities, whether or not now in existence, acquired or constructed to facilitate the movement of goods and people along the corridor or at the Otay Mesa East Port of Entry, including property suitable for any of the following purposes:

(1) International ports of entry.

(2) International border crossing facilities.

(3) Transportation facilities, including highway and roadway, public transit, and nonmotorized facilities, and other projects supporting any transportation facility.

(4) A bridge or tunnel, overpasses, underpasses, entrance plazas, toll houses, administration, storage and other buildings and facilities, and all equipment therefor, and may include terminal facilities, customs and immigration facilities, and such approaches and approach highways as may be determined by SANDAG to be necessary to facilitate the flow of traffic or to connect a project with the existing highway systems, together with all property, rights, easements, and interests acquired by SANDAG for the construction or operation of a project, including, but not limited to, energy and communication lines.

(n) “Property” means land, improvements to land, buildings, improvements to buildings, machinery and equipment of any kind, operating capital, and any other real or personal property necessary for a project.

(o) “SANDAG” means the San Diego Association of Governments, as referenced in the San Diego Regional Transportation Consolidation Act, Chapter 3 (commencing with Section 132350) of Division 12.7 of the Public Utilities Code.

(p) “Toll” means a toll, fee, or other charge for entrance to or use of the corridor and such toll, fee, or other charge as may be governed by an agreement under Section 31483.

(q) “Trustee” means any financial institution or trust company actually doing business in this state.

best value SANDAG bonds Construction Manager/General Contractor State Route 11 project costs Department of Transportation design-build design sequencing transportation facilities toll charges San Diego Association of Governments Otay Mesa East Port of Entry international ports project property

(Amended by Stats. 2023, Ch. 163, Sec. 1. (AB 427) Effective September 8, 2023.)

Section § 31463

This section means that the law should be interpreted broadly to ensure it effectively serves the well-being of the state and its people.

This act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect its purposes.

interpretation welfare liberal construction law purposes state benefits inhabitants' welfare broad interpretation statutory interpretation liberal interpretation state well-being

(Added by Stats. 2008, Ch. 720, Sec. 1. Effective January 1, 2009.)

Section § 31465

This section offers an extra way for SANDAG, an organization in charge of regional transportation planning, to do its work on top of other laws that already exist. Specifically, when SANDAG works under this chapter, it must still follow certain rules like those in the San Diego Regional Transportation Consolidation Act, as long as they're not conflicting. It also has to adhere to the requirements of the Ralph M. Brown Act, which involves public meeting procedures.

This chapter shall provide an additional and alternative method for doing the things authorized by this chapter and shall be regarded as supplemental and additional to any powers and rights conferred on SANDAG by other laws. When carrying out its responsibilities under this chapter, SANDAG shall comply with the requirements imposed by the San Diego Regional Transportation Consolidation Act (Chapter 3 (commencing with Section 132350) of Division 12.7 of the Public Utilities Code) not in conflict with this chapter, including, but not limited to, noticing, holding, and conducting its meetings in accordance with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code).

SANDAG responsibilities regional transportation planning San Diego Regional Transportation Consolidation Act Ralph M. Brown Act compliance public meeting procedures supplemental powers additional methods transportation governance noticing requirements meeting conduct alternative method San Diego regional planning legal compliance Section 54950 transportation authority powers

(Added by Stats. 2008, Ch. 720, Sec. 1. Effective January 1, 2009.)

Section § 31466

The San Diego Association of Governments (SANDAG) has the authority to do whatever is necessary to fulfill the goals of its chapter, including issuing bonds to support projects, working with local and Mexican agencies on plans, and managing tolls and charges. It can buy or take property for its projects and pledge toll revenue to secure bonds. SANDAG can set policies for its operations and ensure debt payments, with assurances that their agreements won't be hindered by the state.

SANDAG shall have and may exercise all rights and powers, expressed or implied, that are necessary to carry out the purposes and intent of this chapter, including the power to do all of the following:

(a) Issue bonds payable from and secured by a pledge of SANDAG of all or any part of the revenues of SANDAG to finance the activities authorized by this act and for the purpose of financing the cost of acquiring or operating any project or to purchase, refund, or otherwise acquire, at or before maturity, any outstanding bonds meeting the requirements provided in this chapter, and to sell those bonds at public or private sale in the form and on the terms and conditions as SANDAG shall approve.

(b) Consult with counties, cities, towns, and other agencies and political subdivisions of this state and Mexico relating to plans and projects authorized by this chapter.

(c) Fix and revise from time to time and charge and collect tolls and other charges described in Section 31474.

(d) Acquire by dedication, gift, purchase, or eminent domain, and hold and dispose of any interests in property whether real or personal in the exercise of its powers and the performance of its duties under this chapter.

(e) Establish and enforce policies, rules, and regulations for the administration, operation, and maintenance of facilities and services.

(f) Pledge all or any part of the toll revenues to secure bonds and any repayment or reimbursement obligations of SANDAG to any provider of bond insurance or letter of credit or line of credit facility determined to be appropriate by SANDAG to provide for the payment of debt service on any bonds of SANDAG, and the state hereby pledges to, and agrees with, the holders of bonds that the state will not limit, alter, or restrict the rights hereby vested in SANDAG to fulfill each pledge of toll revenues and any other terms of any agreement made with or for the benefit of the holders of bonds or in any way impair the rights or remedies of the holders of the bonds or the providers of bond insurance or letter of credit or line of credit facilities.

(g) Do all acts necessary and convenient for the full exercise of the powers granted in this chapter.

SANDAG issue bonds pledge toll revenues local government consultation acquiring property eminent domain collect tolls bond insurance line of credit policies and regulations bond repayment obligations projects financing public or private sale of bonds real or personal property facilities maintenance

(Amended by Stats. 2022, Ch. 422, Sec. 3. (SB 985) Effective January 1, 2023.)

Section § 31467

This law section outlines the ownership and collaborative responsibilities for highway and port projects in California involving the department, SANDAG (San Diego Association of Governments), and potentially federal agencies. Highways remain under state ownership, but SANDAG can choose to own or lease port facility lands, even though they must lease them to federal agencies if they do own them. Other facilities default to SANDAG's ownership unless transferred to a state or federal agency with mutual agreement. Such transfers are free if found beneficial to the state.

Plans for transportation projects must adhere to state standards, while ports of entry must meet federal standards. SANDAG consults with the department or federal agencies on project details like location and design. Cooperation with the department is necessary for highway projects, and SANDAG can make agreements with local, state, and federal agencies to identify obligations and responsibilities, also allowing for leases or permissions for project execution. Projects using department services are included in the department's workload planning.

(a) Highway projects constructed pursuant to the act shall, at all times following construction, be owned by the department. International port of entry facilities constructed pursuant to the act, or the land on which those facilities will be constructed, shall, at SANDAG’s option, be owned either by the federal government or by SANDAG. If SANDAG chooses to own the land or facilities, it shall lease them to a federal agency. Unless prohibited by law, all other property and facilities constructed pursuant to this chapter shall be owned by SANDAG, unless transferred to a state or federal agency upon agreement between SANDAG and the relevant agency. Any department property conveyed to either SANDAG or the federal government pursuant to this section shall be conveyed free of charge and only upon a finding by the California Transportation Commission that the conveyance is in the state’s interest.

(b) The plans and specifications for a transportation project developed, maintained, repaired, rehabilitated, reconstructed, or operated pursuant to the act shall comply with the relevant standards of the department for state transportation projects. Ports of entry projects shall meet the relevant federal agency’s published design standards and legal requirements. SANDAG may approve the location, design, and the materials of construction for a project constructed pursuant to this chapter after consultation with the department or the relevant federal agency, as applicable.

(c) SANDAG shall carry out its highway projects in cooperation with the department and shall consult the department in the operation of a project and on matters related to highway design and construction.

(d) For the purpose of facilitating a project, the agreements between SANDAG and other entities may include provisions for the lease of rights-of-way in, and airspace over or under, highways, public streets, rail, or related facilities for the granting of necessary easements, and for the issuance of permits or other authorizations to enable the construction or operation of a project.

(e) Agreements between SANDAG, appropriate local, state, or federal agencies, or any other entity may be executed to identify the respective obligations and liabilities of one or more of those entities and assign them responsibilities relating to a project. The agreements entered into pursuant to this section shall be consistent with agreements between the department and the United States Department of Transportation relating to a project and may include procedures for enforcement by the Department of the California Highway Patrol.

(f) Any project utilizing the department’s services shall be included in the department’s capital outlay support program for workload purposes.

highway ownership SANDAG port of entry facilities California Transportation Commission transportation project standards state highway design lease agreements rights-of-way project collaboration Department of Transportation construction permits liability management California Highway Patrol enforcement capital outlay support project responsibilities

(Amended by Stats. 2022, Ch. 422, Sec. 4. (SB 985) Effective January 1, 2023.)

Section § 31468

This law allows the San Diego Association of Governments (SANDAG) to use alternative methods for delivering construction projects. These methods include design-build, design sequencing, and Construction Manager/General Contractor (CMGC). Before choosing an alternative method over the traditional one, SANDAG must show it will cut costs, speed up completion, or offer unique features. If using the CMGC method, SANDAG must contract with a construction manager for preliminary services without setting a fixed or maximum price until final agreements are made. The construction manager must handle at least 30% of the construction work, while the rest goes to subcontractors through a competitive bidding process. Importantly, these alternative methods don't change the existing legal obligations of public agencies or contractors.

(a) The Legislature has recognized the merits of alternative project delivery methods in the past by authorizing their use for projects undertaken by school districts, the University of California, specified local government projects, state office buildings, and public transit projects.

(b) It is the intent of the Legislature to provide optional, alternative procedures for delivering the project and its components pursuant to this act. SANDAG may enter into an alternative project delivery method contract authorized in this section on a project or any project component, after comparison of the traditional design, bid, and build process of construction with the proposed alternative project delivery method in a public meeting, if the governing board makes written findings that use of an alternative project delivery method on the specific project or project component under consideration will accomplish at least one of the following objectives: reduce comparable project costs, expedite a project’s completion, or provide features not achievable through the traditional design-bid-build method.

(c) SANDAG may utilize the following alternative project delivery methods if the conditions in this section are met:

(1) Design-build.

(2) Design sequencing.

(3) Construction Manager/General Contractor (CMGC).

(d)

(1) If a contract for CMGC services is entered into pursuant to this chapter and includes preconstruction services by the construction manager, SANDAG shall enter into a written contract with the construction manager for the preconstruction services, under which SANDAG shall pay the construction manager a fee for preconstruction services in an amount agreed upon by SANDAG and the construction manager. The preconstruction services contract may include fees for services to be performed during the contract period, provided that SANDAG shall not request or obtain a fixed price or a guaranteed maximum price for the construction contract from the construction manager or enter into a construction contract with the construction manager until after SANDAG has entered into a services contract. A preconstruction services contract shall provide for the subsequent negotiation for construction of all or any discrete phase or phases of the project and shall provide for SANDAG to own the design plans and other preconstruction services work products.

(2) A contract for construction services may be awarded after the plans have been sufficiently developed and either a fixed price or a guaranteed maximum price has been successfully negotiated. In the event that a fixed price or a guaranteed maximum price is not successfully negotiated, SANDAG may award the contract for construction services utilizing any other procurement method authorized by law.

(3) The construction manager shall perform not less than 30 percent of the work covered by the fixed price or guaranteed maximum price agreement reached. Work that is not performed directly by the construction manager shall be bid to subcontractors pursuant to Section 6955 of the Public Contract Code.

(e) It is the intent of the Legislature that alternative project delivery methods as authorized in this section shall not be construed to extend, limit, or change in any manner the legal responsibility of public agencies and contractors to comply with existing laws.

SANDAG alternative project delivery design-build design sequencing Construction Manager/General Contractor CMGC preconstruction services contract negotiation public procurement cost reduction project completion subcontractor bidding public transit projects project features construction contracts

(Amended by Stats. 2023, Ch. 163, Sec. 2. (AB 427) Effective September 8, 2023.)

Section § 31472

This law makes it clear that SANDAG or the department cannot lease or sell toll roads to private companies. They also are not allowed to turn existing free highways into toll roads, unless it's part of a specific corridor or allowed by other laws.

This chapter does not authorize SANDAG or the department to do either of the following:

(a) Lease or otherwise convey a toll road to a private-sector entity.

(b) Convert any existing nontoll or non-user-fee highway lane into a tolled or user-fee highway lane, except in the corridor or as otherwise permitted by law.

SANDAG toll roads private-sector lease convey existing highways nontoll non-user-fee tolled highway user-fee highway conversion restrictions corridor exceptions transportation authority public infrastructure privatization limitations

(Amended by Stats. 2022, Ch. 422, Sec. 6. (SB 985) Effective January 1, 2023.)

Section § 31473

In the San Diego region, cities and counties can lease, lend, or give real estate to SANDAG, which stands for the San Diego Association of Governments, without any complex formalities, as long as their governing bodies approve. If they can't agree on a price or if the owner can't sell the property legally, SANDAG can take the land it needs through a process called eminent domain.

This means they can acquire land or property, including public roads, from individuals or organizations for projects like construction or repair. However, they can't take certain airspace rights related to State Route 125. Any issues with relocation due to property acquisition must follow specific government rules, and any property SANDAG gets through this process is held in their name.

If someone doesn't want to move their belongings or leave the property that's being taken, SANDAG can use legal methods to gain possession.

(a) The cities and county in the San Diego region are authorized and empowered to lease, lend, grant, or convey to SANDAG at its request upon such terms and conditions as the city or county considers reasonable and fair and without the necessity for any advertisement, order of court, or other action of formality, other than the regular and formal action of the governing body of the cities or county, any real property that may be necessary or convenient to the effectuation of the authorized purposes of SANDAG, including public highways and other real property already devoted to public use.

(b) If a reasonable price cannot be agreed upon, or if the owner is legally incapacitated, absent, unknown, or unable to convey valid title, SANDAG is hereby authorized and empowered to acquire by condemnation or by the exercise of the power of eminent domain any lands, property, rights, rights-of-way, easements, and other property, including highways or parkways, or parts thereof or rights therein, of any person, copartnership, association, railroad, public service, public utility or other corporation, municipality, or political subdivision considered necessary or convenient for the construction, repair, or improvement or the efficient operation of a project or necessary in restoration of public or private property damaged or destroyed, but not including any of the rights of any franchisee, lessee, or owner of airspace rights in the demonstration toll road project known as State Route 125 in the County of San Diego.

(c) Any proceedings pursuant to subdivision (b) shall be conducted in accordance with and subject to the relocation assistance guidelines in Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code. Title to any property acquired by SANDAG shall be taken in the name of SANDAG or the department.

(d) If the owner, lessee, or occupier of any property to be condemned refuses to remove his or her personal property from the property or give up possession of the property, SANDAG may proceed to obtain possession in any manner now or hereafter provided by law.

SANDAG real estate San Diego region property transfer eminent domain San Diego property condemnation State Route 125 rights property acquisition guidelines relocation assistance condemnation proceedings municipal property transfer real property conveyance public use property legal incapacitation land acquisition removal of personal property public highways property

(Added by Stats. 2008, Ch. 720, Sec. 1. Effective January 1, 2009.)

Section § 31474

SANDAG can impose tolls for using specific corridors, but this rule doesn't apply to tolls transferred under certain agreements. They must check every two years if the toll rates cover all project costs. Toll rates can include discounts to promote less congestion and eco-friendly travel, like reduced rates for carpool vehicles and electronic toll collection, or increased rates during busy times. They must adjust tolls based on economic changes, such as inflation. Even with these variations, tolls must always be enough to cover financial obligations tied to revenue pledges. Tolls need to follow any set guidelines from agreements with other parties.

(a) SANDAG may only impose tolls under this chapter for entrance to or the use of the corridor. To the extent provided in an agreement under Section 31483, this restriction does not apply to any toll, portion of a toll, or portion of toll revenue transferred by SANDAG to another party to an agreement under Section 31483. This subdivision does not limit uses of toll revenue authorized by this chapter.

(b) SANDAG shall review the adequacy of the toll rates established to cover the aggregate costs of all projects within two years following the opening of the initial project to be supported by toll revenue under this chapter and at least biennially after the initial review for so long as SANDAG imposes tolls under this chapter.

(c)

(1) SANDAG’s toll structure may include discounts and premiums to encourage efficient use of projects and reduction of congestion and emission of greenhouse gases, including, without limitation, discounts for high-occupancy vehicles, electronic toll collection, and off-peak travel, and premiums for on-peak travel.

(2) SANDAG shall revise or eliminate any free or reduced-rate toll rate schedule adopted pursuant to paragraph (1) as necessary to ensure compliance with obligations described in subdivisions (b) and (f).

(d) SANDAG’s toll structure may include adjustments to toll rates to reflect economic factors, including, but not limited to, the Consumer Price Index or other cost indices.

(e) SANDAG’s toll structure shall reflect the toll setting policies and procedures set forth in any agreement under Section 31483.

(f) Notwithstanding subdivisions (a) to (e), inclusive, tolls under this chapter shall be maintained at rates sufficient to meet any obligation secured by a pledge of revenues under this chapter, and covenants set forth in any related resolution, indenture, or constituent instrument.

SANDAG tolls corridor use toll rates review project costs discounts and premiums high-occupancy vehicles electronic toll collection off-peak travel on-peak travel economic adjustments Consumer Price Index toll setting policies revenue obligations financial agreements greenhouse gas reduction

(Amended by Stats. 2022, Ch. 422, Sec. 7. (SB 985) Effective January 1, 2023.)

Section § 31475

This law explains how toll revenues can be used by SANDAG (San Diego Association of Governments) for various transportation-related expenses. The money can cover costs for implementing, building, maintaining, or operating projects, and includes reimbursement of federal funds or other unavailable funds. SANDAG can use up to 3% of the toll revenue for administrative costs.

Toll revenue can pay for several specific expenses. These include bond payments and related financial obligations, operational and administrative costs for SANDAG, and reimbursement to federal, state, and local agencies for their expenses on a project.

Funds can also be allocated for capital improvements like repairs, expansions, and enhancements to transit and nonmotorized options. Additional projects that enhance transportation options, like at the Otay Mesa East Port of Entry, are eligible as well. Finally, funds can be used for payments required under specific agreements.

(a) Toll revenues under this chapter may be used to reimburse or finance the costs incurred in connection with the implementation, construction, maintenance, or operation of a project, including reimbursement of federal funds specifically allocated to SANDAG for a project or projects by the federal government or other funds from funding sources that are not otherwise available to state agencies for transportation-related projects. SANDAG shall be reimbursed for administrative costs in an amount that shall not exceed 3 percent of toll revenues under this chapter.

(b) Toll revenues shall be used to pay for costs in the following categories:

(1) Payments pursuant to bonds and resolutions, indentures, and other constituent instruments defining the rights of the holders of bonds and any repayment or reimbursement obligations of SANDAG to any providers of bond insurance or letters of credit or lines of credit related to bonds.

(2) SANDAG costs for operations, toll collection, and administration of the projects.

(3) Reimbursement or payment to federal, state, and local agencies for costs incurred by or payable to those agencies for services, equipment, goods, fixtures, operation, maintenance, personnel, or software provided to or in furtherance of a project that are reimbursable pursuant to a written agreement between SANDAG and the respective agency.

(4) Costs for capital improvements to repair or rehabilitate a project, to expand project capacity, to improve project operations, or to increase public transit and nonmotorized options in the corridor.

(5) Costs for projects that increase transportation options along the corridor or at the Otay Mesa East Port of Entry, including, but not limited to, public transit and nonmotorized transportation that would result in reduced vehicle miles traveled, pursuant to the plan approved by the board pursuant to subdivision (b) of Section 31476 that specifies the expenditure of toll revenues.

(6) Payments pursuant to an agreement under Section 31483.

SANDAG toll revenues transportation projects administrative costs federal funds reimbursement bond payments operational costs capital improvements public transit expansion nonmotorized transportation Otay Mesa East Port of Entry transportation options vehicle miles reduction reimbursement agreements financial obligations

(Amended by Stats. 2022, Ch. 422, Sec. 8. (SB 985) Effective January 1, 2023.)

Section § 31476

This law outlines procedures for setting and adjusting toll rates for a project. Before the initial toll rates or any rate adjustments are set, there must be a public comment period and a public meeting to gather input. The board must also approve an annual expenditure plan for how the toll revenues will be used, which requires a public meeting with at least 30 days' notice.

Once the project costs and bonds are fully paid off, toll collection should stop unless the board votes with a two-thirds majority to extend it. This decision also requires a public meeting and a 30-day notice. Additionally, an annual audit by a certified public accountant is required to ensure proper use of toll revenues.

(a) At least 30 days prior to setting the initial toll rates for a project, and thereafter when adjustments to the toll rates are proposed, the board shall provide a public comment period regarding the proposed rates. The board shall also take public testimony at one or more public meetings during this time period.

(b) The expenditure plan for toll revenues shall be updated and approved by the board on an annual basis beginning on July 1 following implementation of a toll. Approval of the initial and annual expenditure plan shall take place at a public meeting held by the board following a notice of at least 30 days to the public.

(c) Collection of tolls under this chapter shall cease following repayment of the bonds and other project costs in full unless an extension of the time for toll collection is approved by a two-thirds vote of the board at a public meeting following a notice of at least 30 days to the public.

(d) The board shall arrange for a postaudit of the toll revenues expended pursuant to this chapter to be made at least annually by a certified public accountant.

toll rates public comment period public meeting rate adjustments expenditure plan toll revenues annual basis bonds repayment project costs toll collection extension two-thirds board vote 30-day public notice annual audit certified public accountant toll revenues audit

(Amended by Stats. 2022, Ch. 422, Sec. 9. (SB 985) Effective January 1, 2023.)

Section § 31477

This law allows SANDAG, the San Diego Regional Association of Governments, to make agreements with San Diego County or its cities to collect fees. These fees, under state subdivision or mitigation laws, would reimburse SANDAG for expenses related to development impacts on traffic around State Route 11 or Otay Mesa East Port of Entry.

The fees must be used by SANDAG for construction projects benefiting the area where the fees were collected. It also allows other forms of payment instead of fees. If any part of this law or related ordinances is found invalid, the rest remains effective, thanks to a legal concept called 'severability.'

(a) SANDAG may enter into one or more agreements with the County of San Diego or a city within the County of San Diego to accept fees imposed by that city or the county pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410) of Title 7 of the Government Code) or the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code), to reimburse SANDAG for costs it has or will incur to mitigate development that will have a negative impact on the movement of people or goods in or along the State Route 11 corridor or the Otay Mesa East Port of Entry.

(b) Fees paid to a city or the county and transferred to SANDAG pursuant to this section shall be expended by SANDAG solely for the construction or reimbursement for construction of the improvement serving the area to be benefited and from which the fees transferred from the city or county were collected.

(c) The agreement may provide for the acceptance of considerations in lieu of the payment of fees.

(d) If the provisions of this section, or provisions implementing this section contained in any ordinance adopted pursuant to this section, are held invalid, that invalidity shall not affect other provisions of this section or of the ordinance adopted pursuant thereto, which can be given effect without the invalid provision, and to this end the provisions of this section and of an ordinance adopted pursuant thereto are severable.

SANDAG agreements San Diego County fees Subdivision Map Act Mitigation Fee Act State Route 11 Otay Mesa East traffic impact mitigation development fees fee reimbursement construction projects in-lieu payments severability local government agreements transportation infrastructure negative development impact

(Amended by Stats. 2022, Ch. 422, Sec. 10. (SB 985) Effective January 1, 2023.)

Section § 31481

This law explains how SANDAG, a local agency, can issue bonds for projects as outlined under the Revenue Bond Law of 1941. It specifies that these bonds are not backed by the state’s credit or taxing power, which means they're paid through revenue generated by the projects themselves, not by state taxes.

SANDAG must pass a board resolution to issue these bonds, and they can confirm the bonds’ validity through legal action if needed. For bonds related to tolls, a public meeting is required, with a 30-day notice, where residents can share their views before a two-thirds board approval is necessary to proceed.

(a) SANDAG may, from time to time, issue bonds in accordance with the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of Title 5 of the Government Code) for any of the purposes authorized by this chapter. SANDAG shall constitute a “local agency” within the meaning of Section 54307 of the Government Code. The operation of SANDAG projects or any grouping or units thereof shall constitute an “enterprise” within the meaning of that section.

(b) Article 3 (commencing with Section 54380) of Chapter 6 of Part 1 of Division 2 of Title 5 of the Government Code does not apply to the issuance and sale of bonds pursuant to this chapter and SANDAG shall authorize the issuance of such bonds by resolution of its board.

(c) Any bond issued pursuant to this section shall contain on its face a statement to the following effect: “Neither the full faith and credit nor the taxing power of the State of California is pledged to the payment of principal of, or the interest of this bond.”

(d) SANDAG may bring an action to determine the validity of any of its bonds pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.

(e) Before issuing any new or increased toll revenue bonds, the board shall conduct at least one public meeting following at least 30 days’ notice to the public at which public testimony shall be taken regarding the proposed bond issuance. Issuance of new or increased toll revenue bonds pursuant to this act shall require approval by at least two-thirds of the board’s voting members.

SANDAG bonds Revenue Bond Law of 1941 local agency bond issuance SANDAG board resolution bond validity action toll revenue bonds public meeting board approval taxing power enterprise operation bond statement public testimony two-thirds board approval notice period

(Added by Stats. 2008, Ch. 720, Sec. 1. Effective January 1, 2009.)

Section § 31482

This section explains that the San Diego Association of Governments (SANDAG), its income, property, and any bonds it issues, including the interest on those bonds, are not subject to state or local taxes in California. These bonds can be considered legal investments for various financial entities like banks and trust companies, and they can be used as securities by state or municipal officials. Additionally, this law clarifies it doesn't interfere with the state's ability to make transportation improvements that could affect the use of transportation facilities within the corridor.

(a) SANDAG, its income and property, all bonds issued by it, and the interest on the bonds are exempt from all taxation by this state or any political subdivision of this state.

(b) Bonds issued by SANDAG are legal investments for all trust funds, the funds of all insurance companies, banks, trust companies, executors, administrators, trustees, and other fiduciaries. The bonds are securities that may legally be deposited with, and received by, any state or municipal officer or agency or political subdivision of the state for any purpose for which the deposit of bonds or obligation of the state is now, or may hereafter be, authorized by law, including deposits to secure public funds.

(c) Nothing in this chapter is intended to infringe upon the rights of the state to make transportation improvements that may impact use of transportation facilities in the corridor.

SANDAG bonds tax exemption legal investments trust funds investments insurance companies investments municipal securities state transportation improvements property tax exemption income tax exemption state bonds deposit public funds security transportation corridor fiduciary investments political subdivision transportation facilities impact

(Added by Stats. 2008, Ch. 720, Sec. 1. Effective January 1, 2009.)

Section § 31483

This law allows SANDAG, the San Diego Association of Governments, to partner with Mexican authorities to implement toll systems at the Otay Mesa East Port of Entry. The aim is to reduce congestion, improve environmental conditions, and create an efficient transportation system at the border.

SANDAG can work together with Mexican government entities to manage toll collections, share information, and divide the responsibilities and costs of operation and maintenance. The agreement can specify conditions like which side of the border collects tolls, how the toll revenues and operational costs are shared, and the policies for setting toll rates.

It also covers the allocation of liabilities and methods to resolve disputes. The section requires that these actions must comply with federal laws and obtain necessary approvals.

(a) The Legislature finds and declares both of the following:

(1) Cooperative tolling arrangements can further reduce congestion and wait times at the border and thereby reduce commercial and noncommercial vehicle emissions.

(2) Streamlined cross-border tolling arrangements will preserve public revenues for both the north side and the south side of the Otay Mesa East Port of Entry by providing for a more efficient border region transportation system.

(b) SANDAG shall have and may exercise all rights and powers, expressed or implied, that are necessary to carry out the purposes and intent of this chapter, including the power to do both of the following:

(1) By agreement, exercise one or more of SANDAG’s powers to impose and collect tolls, acquire, operate, and maintain tolling facilities, and related powers under this chapter jointly with the tolling powers of one or more of the federal government of Mexico or a governmental agency or unit thereof.

(2) Contract with one or more of the federal government of Mexico or a governmental agency or unit thereof to receive from or provide to the other contracting parties toll collection and remittance functions and services.

(c) Any agreement authorized pursuant subdivision (b) may include provisions to limit or restrict all of the following:

(1) Toll collection to one side of the Otay Mesa East Port of Entry.

(2) Equitable allocation of toll revenues collected by a party to another party or make payments from toll revenues in consideration of covenants made or other value contributed.

(3) Equitable allocation and financing of the operating, maintenance, and capital costs, including financing costs.

(4) Sharing of information regarding toll collections and revenues and information regarding traffic at or near the Otay Mesa East Port of Entry and approaching roadways.

(5) Investment of funds.

(6) Establishment of policies and procedures for toll rate setting in accordance with this chapter.

(7) The time and manner of termination, unwinding, and distribution of property upon termination.

(8) Allocation of liabilities and indemnity.

(9) The adjudication of disputes or disagreements.

(10) The manner that strict accountability of funds will be provided for and auditing.

(11) Other provisions that would enhance the efficiency border crossings at the Otay Mesa East Port of Entry or tolling as well as any other necessary and proper matters agreed upon by the parties.

(d) Toll revenues paid or allocated to a party other than SANDAG under an agreement pursuant this section shall not be subject to the restrictions of this chapter upon transfer to the other party in accordance with the agreement.

(e) This section may only be implemented consistent with federal law, including obtaining any required federal approvals.

SANDAG toll collection Otay Mesa East Port of Entry partnership with Mexico traffic congestion reduction vehicle emissions transportation system border efficiency toll revenue sharing operational cost allocation legal agreements cross-border collaboration federal approval dispute resolution toll rate policies

(Added by Stats. 2022, Ch. 422, Sec. 11. (SB 985) Effective January 1, 2023.)

Toll Facilities And Related Matters

Chapter 7Otay Mesa East Toll Facility Act

Section § 31460

Section § 31461

Section § 31462

Section § 31463

Section § 31465

Section § 31466

Section § 31467

Section § 31468

Section § 31472

Section § 31473

Section § 31474

Section § 31475

Section § 31476

Section § 31477

Section § 31481

Section § 31482

Section § 31483

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