THE SENATE COMMITTEE AND
GOVERNANCE AND FINANCE WILL COME
TO ORDER. GOOD MORNING TO
EVERYBODY. THE SENATE CONTINUES
TO WELCOME THE PUBLIC IN PERSON
AND VIA THE TELECONFERENCE
SERVICE. SO FOR INDIVIDUALS THAT
WISH TO PARTICIPATE. IN THE
PUBLIC COMMENT PERIOD. TODAY THE
PARTICIPANT NUMBER IS 8772. AND
THE ACCESS CODE IS 161. 8051 WE
ARE HOLDING OUR COMMITTEE
HEARINGS HERE IN THE OFF STREET
BUILDING. AND SO I'M GONNA ASK
ALL THE MEMBERS OF THE COMMITTEE
TO BE PRESENT IN ROOM 2200 SO
THAT WE CAN ESTABLISH OUR CORE.
UM, WE'RE GOING TO BEGIN OUR
HEARING TODAY AS A SUBCOMMITTEE.
AND OUR FIRST AGENDA ITEM. AND
FIRST AND ONLY AGENDA ITEM IS SB
8 TO 62 BY SENATOR LAIRD. UM WE
ARE HEARING THIS BILL UNDER
SENATE RULE. 29.10 D, WHERE WE
ARE CONSIDERING THE AMENDMENTS
TO THE BILL MADE IN THE ASSEMBLY
BEFORE WE WELL, WE NEED TO WAIT
UNTIL OTHER MEMBERS COME TO
ESTABLISH A QUORUM. SO WE'RE
GOING TO GO AHEAD AND GET
STARTED STARTED AS A
SUBCOMMITTEE ONE INVITE SENATOR
LAIRD, PLEASE COME TO THE
PODIUM. AND TELL US. WHAT
AMENDMENTS WERE DONE. NO. THANK
YOU, MADAM. CHAIR AND MEMBER. UM
I'M PLEASED TO PRESENT THIS BILL
AND AS THE CHAIR JUST SAID IT
WAS SUBSTANTIALLY AMENDED IN THE
ASSEMBLY. IT CANNOT BE RE
AMENDED IN THE SENATE. BUT THIS
IS A HEARING TO GIVE IT JUST
AIRING, UH, ON THE ISSUES AND
SENATE BILL 862 WILL ALLOW THE
SANTA CRUZ COUNTY VOTERS TO
DECIDE IF THE COUNTY OF SANTA
CRUZ SHOULD RAISE THE COMBINED
TAX RATE LIMIT ABOVE 2% FOR THE
METROPOLITAN TRANSIT DISTRICT OF
SANTA CRUZ COUNTY. IF LEFT
UNADDRESSED, THE FISCAL CLIFF
REALLY EXISTS IN THE FUTURE FOR
THE TRANSIT SYSTEM. AND WHILE
THE LEGISLATURE ADDRESSED IT
THIS YEAR BUDGETARILY WITH SOME
ASSISTANCE. IT'S A ONE YEAR
ASSISTANCE IN THE REAL QUESTION
IS ONGOING ASSISTANCE. THE SANTA
CRUZ METRO. IS IN A SITUATION
WHERE 65% OF ITS CUSTOMERS EARN
LESS THAN $24,000. PERCENT OF
THE OF THE CUSTOMERS ARE
RIDERSHIP DID NOT HAVE ACCESS TO
A CAR AND WE SAW THE HARD WAY
THERE WAS A STRIKE OF THE
TRANSIT WORKERS ROUGHLY 10 YEARS
AGO, AND IT WENT ON FOR A PERIOD
OF WEEKS AND AT THE U. C CAMPUS
, AND I KNOW SENATOR CABALLERO,
UH, FAMILIAR WITH THAT. IT'S
THIS LONG ROAD UP TO THE CAMPUS
FOR A MILE OR MY OWN BEHALF AND
CARS DIAGONALLY PARKED THE
ENTIRE WAY UP. TRAFFIC JAMS
EXISTED. THAT DIDN'T USUALLY
EXIST. PEOPLE STRUGGLED TO GET
TO THEIR JOBS AND THEIR SCHOOLS
AND WE REALLY SAW WHAT HAPPENS
IF YOU DON'T HAVE THIS TRANSIT
SYSTEM AND WE SAW WHO IS
AFFECTED. SO THE METRO
SIGNIFICANTLY WORKING TO
OVERHAUL THEIR SERVICE TO REGAIN
RIDERS. AFTER WHAT HAPPENED
DURING THE PANDEMIC. UH AND THE
ANALYSIS ALSO, I WANT TO JUST BE
REALLY DIRECT. THE ANALYSIS
MENTIONS TWO CITIES IN THE
DISTRICT WILL THIS WILL BRING IT
UP TO 10.25% IF IT WERE TO GO TO
THE VOTERS AND PASS AND THERE
ARE OVER 80 CITIES IN THAT
CATEGORY IN CALIFORNIA. NOW,
THIS IS NOT UNIQUE. IT HAS
HAPPENED WHEREVER THERE IS A
PLACE THAT THIS LIMIT HAS BEEN
CHANGED, AND THERE'S ALWAYS A
FEW CITIES IN IT, AND IT EXISTS
IN IN SOME OF THE METROPOLITAN
COUNTIES IN CALIFORNIA. THE
OPPOSITION BELIEVES THAT THIS
WILL HURT WORKING FAMILIES AND
LOW INCOME RESIDENTS. BUT THIS
IS A CHOICE. IT IS IF 60% OF THE
RIDERS DO NOT HAVE ACCESS TO A
CAR, AND THAT ACCESS GOES AWAY.
IT'S A CHOICE BETWEEN THE TWO
AND THAT ACCESS TO WORK AND
SCHOOL BECOMES MUCH MORE
IMPORTANT. YEAH YEAH. KEY PIECE
OF THIS IS THE CITY OF WATSON
FILL, WHICH I KNOW SENATOR
CABALLERO USED TO ADDRESS AND I
KNOW WHERE SENATOR RAZA WAS
TIRED OF ME TALKING ABOUT IT
BECAUSE WE WERE SEAT MATES LAST
YEAR, WHEN I WENT THROUGH THE
WATCHING VILLE HOSPITAL
SITUATION AND EXPLAINED EXACTLY
WHO LIVED IN WATSON VILLAIN. AND
THE NUMBER OF REDUCED AND FREE
MEAL STUDENTS THE NUMBER OF
PEOPLE THAT HAD HOUSING
CHALLENGES IN LANGUAGE
CHALLENGES, AND IT IS A
SUBSTANTIAL PART OF THIS
DISTRICT WHERE TRANSIT IS
INTEGRAL TO THAT THAT CITY WITH
THIS ADDITIONAL TAX CAPACITY,
THE METRO COULD GO TO THE BALLOT
IN 2024. TO PURSUE HALF SET
TRANSITION TRANSACTION AND USE
TAX AND THE REVENUE WOULD BE
USED TO SUPPORT THE PARA CREWS
AND OTHER TRANSIT SERVICES, AND
I SHOULD BE CLEAR THIS BILL JUST
ALLOWS THE VOTERS TO CONSIDER
THIS. THIS BILL ITSELF DOES NOT
CHANGE. THE TAXES AND PASSED THE
ASSEMBLY ON A 52 TO 16 VOTE IN
THE AMENDED FORM, AND AT THE
APPROPRIATE TIME, I WOULD
RESPECTFULLY ASK FOR AN I VOTE
AND HERE TO TESTIFY AND
SUPPORTERS. MICHAEL TREE IS THE
CEO AND GENERAL MANAGER OF SANTA
CRUZ METRO. WELCOME. CHAIR
CABALLERO AND MEMBERS. IT'S
REALLY A PLEASURE TO BE HERE,
AND I'M VERY THANKFUL TO SENATOR
LARD FOR CARRYING THIS IMPORTANT
BILL. I JUST WANT TO REITERATE
THAT. WHAT I'M REALLY HOPING TO
GAIN IS AN OPPORTUNITY TO TALK
TO THE PUBLIC ABOUT SANTA CRUZ
METRO AND AN OPPORTUNITY TO TALK
ABOUT MINIMIZING FUTURE CUTS,
WHICH WOULD INCLUDE CUTS FOR
SENIOR AND DISABLED ON THE PAIR
OF CRUZ AND IMPORTANT FIXED
ROUTES. IT SERVED, WATSON
VILLAS, SENATOR, LORDS SAID,
WHICH IS A DISADVANTAGED
COMMUNITY. AND ALSO THE
UNIVERSITY. UM SANTA CRUZ METRO
HAS JUST BEEN A VICTIM OF COST
INCREASES EXPENDITURES THAT
OUTPACE REVENUES AND I WAS
CHATTING WITH OUR BOARD THE
OTHER DAY WHEN WE WERE CHATTING
AND TALKING ABOUT THIS, AND I
MENTIONED THAT IN 2023. WE'RE
PROVIDING 50,000 SERVICE HOURS
LESS THAN WE WERE IN 2000. AND
THAT'S JUST A VICTIM OF
EXPENDITURES OVER TIME OUTPACING
CONTRIBUTIONS EXPENDITURES LIKE
FUEL COSTS, HEALTH CARE,
RETIREMENT AND SO ON AND SO
REALLY GRATEFUL THAT YOU'RE
TAKING CONSIDERATION ON THIS
TODAY WOULD APPRECIATE AND I
VOTE AND I WOULD BE REMISS IF I
DIDN'T SAY THAT. I'M REALLY
APPRECIATIVE OF THE STATE FOR
THE STOPGAP FUNDING THAT YOU
PROVIDED METRO AND OTHER TRANSIT
AGENCIES THROUGHOUT THE STATE.
AND WE'RE HOPEFUL TO DO OUR PART
IN KEEPING METRO HEALTHY BY
CONTINUING TO TALK TO RESIDENTS
AT THE LOCAL LEVEL ON THE
CONTINUATION OF THEIR SERVICE.
SO I APPRECIATE THE OPPORTUNITY
TO BE HERE TODAY. THANK YOU.
THANK YOU VERY MUCH FOR COMING.
WE APPRECIATE YOUR TESTIMONY. IS
THERE ANYBODY ELSE WHO WOULD
LIKE TO SPEAK IN SUPPORT OF THE
BILL? ANYBODY ELSE WANT TO
WELCOME YOU TO COME TO THE MIC?
THOSE THAT ARE IN ROOM 2200.
SAYING NONE WILL MOVE ON TO
OPPOSITION. IS THERE ANYBODY IN
OPPOSITION OF THE BILL? WANT TO
INVITE YOU TO? PLEASE COME TO
THE MIC AND STATE YOUR
OPPOSITION? SAYING NO OPPOSITION
WILL MOVE ON TO THE
TELECONFERENCE LINE AND ASKED
THE MODERATOR IF YOU COULD
PLEASE QUEUE UP ONCE AGAIN. IF
YOU COULD GIVE ME A SECOND, I'M
GOING TO READ THE NUMBER. THE
PARTICIPANT NUMBER IS 877.
2268163. AND THE ACCESS CODE IS
16180. MARK THAT ON YOUR PHONE
AND WE'LL ENTER YOU INTO THE
COMMITTEE. THANK YOU, MADAM
CHAIR. LADIES AND GENTLEMEN, IF
YOU WISH TO COMMENT, PLEASE
PRESS ONE, THEN ZERO ON YOUR
TELEPHONE KEYPAD. YOU WILL HEAR
TOÀN ACKNOWLEDGING YOUR REQUEST.
ONE MOMENT, PLEASE. AND WE HAVE
NO ONE MET HIM TEAR. YOU MAY
CONTINUE. VERY GOOD. THANK YOU
VERY MUCH FOR YOUR ASSISTANCE
TODAY. UM WILL BRING THE ISSUE
BACK TO THE COMMITTEE AND SEE IF
THERE ARE ANY QUESTIONS SENATOR
BLAKE'S FOR THANK YOU. I JUST
HAVE A QUICK QUESTION IF THE TAX
RATE GOES UP 0.5% WHAT IS THE
EXPECTED ANNUAL REVENUE? THAT IT
WILL GENERATE. LET MR TREE
RESPOND. 27 MILLION. OKAY AND IT
IS THAT SIGNIFICANT ENOUGH FOR
YOUR OPERATIONS. IT IS THAT WE
PROJECT THAT THAT WOULD ALLOW
THE AGENCY THAT CONTINUE ITS
SERVICES AND EVEN MAKE SOME
IMPROVEMENTS OVER A 15 YEAR
HORIZON WITHOUT DEFICITS, AND
YOU WOULD USE THAT FOR
OPERATIONS NOT FOR CAPITAL.
THAT'S CORRECT, ALTHOUGH IN THE
EXPENDITURE PLAN WHAT WILL PUT
THE MATCH THE LOCAL MATCH FOR A
FEW CAPITAL PROJECTS? OKAY
ESPECIALLY THE ZERO EMISSION BUS
PROGRAM THAT WE'RE WORKING ON
WITH THE STATE MANDATES. YES
OKAY. GREAT THANK YOU. THERE
QUESTIONS COMING TO MOVE THE
BILL MANAGER. THERE IS A MOTION
TO MOVE THE BILL. ABSOLUTELY WE
NEED TO ESTABLISH THE QUORUM.
YEAH. UM, BUT APPRECIATE THAT.
SWIFT MOVEMENT. UM I HAVE A
COUPLE OF QUESTIONS JUST IN
TERMS OF I'M I'M GOING TO
SUPPORT THE BILL. I THINK IT'S
REALLY IMPORTANT AND WHAT IS
IMPRESSIVE AS THAT THERE ARE
IT'S VERY DIFFICULT TO FIND. UM
. PUBLIC TRANSPORTATION SERVICES
FOR RURAL CALIFORNIA. SO THE
FACT THAT WATSON VILLE IS, UM IS
PART OF THE DISTRICT IS REALLY,
REALLY TERRIFIC. MOST OF MY
DISTRICT DOES NOT HAVE PUBLIC
TRANSPORTATION THAT GOES TO
COMMUNITIES THAT DESPERATELY
NEEDED, SO THIS IS IMPORTANT,
BUT I'M WORRIED ABOUT THE LONG
TERM SUSTAINABILITY OF, UM. OF
TRANSIT, AND I'M WONDERING IF
YOU HAVE AND JUST YOU CAN TALK
ABOUT SHORT TERM AND LONG TERM
WHAT SOME OF THE SOLUTIONS ARE
GOING TO BE. AND I SAY THIS
BECAUSE HERE IN SACRAMENTO, I'M
OVER. I LIVE OVER NEAR THE U. C.
DAVIS MEDICAL CENTER, AND THEY
JUST BUILT WANT TO SAY THAT IT'S
TOO THEY MAY BE ON THE THIRD. UM
FOR LEVEL PARKING STRUCTURE. IN
YOU KNOW, WITHIN A BLOCK OF
WHERE I LIVE AND WHERE'S THE
COMMITMENT AND I'M A BLOCK AND A
HALF FROM LIGHT RAIL. SO WHAT
ARE WE DOING THAT WE'RE BUILDING
THESE HUGE PARKING STRUCTURES
THAT CAN THEY CAN. YOU KNOW,
PARK A LOT OF INDIVIDUALLY
INDIVIDUAL WRITERS. UM WHEN WE
SHOULD BE REALLY FOCUSED ON HOW
DO WE GET MORE RIDERSHIP ON? ON
THE PUBLIC TRANSPORTATION IF I
CAN TAKE A WHACK AT THAT SURE,
ABSOLUTELY. THE BUDGET SIDE AH,
THIS IS A UNIQUE DISTRICT IN THE
FACT THAT THERE IS A HALF CENT
GENERAL SALES TAX THAT EXISTS
ALREADY THAT WAS PASSED AT THE
SAME BALLOT. THE VOTERS WERE
PASSING PROPOSITION 13, AND IT
EXISTS. THE CABRILLO COLLEGE AND
UNIVERSITY OF CALIFORNIA HAVE
MANDATORY STUDENT FEES THAT PUT
A LOT OF MONEY IN THE BUDGET FOR
TRANSIT THAT WAY, AND IN
RESPONSE TO SENATOR BLAKE
SPIRITS QUESTION A LOT OF THE
CAPITAL THAT IS THE ONE PLACE
THERE ARE GRANT PROGRAMS AND
WHAT WAS IMPORTANT WAS AS
MENTIONED IN THE PLAN THAT THE
MATCH IS WHAT MIGHT COME UP HERE
THAT ALLOWS TO GET THOSE OUTSIDE
GRANTS. AND WHEN YOU PUT THAT
ALL TOGETHER IT ALLOWS FOR A
SUSTAINABLE SPENDING PLAN AND
THEN TO GET TO THE OTHER PART OF
THE QUESTION. UM, THE TRANSIT
CENTERS, THE MAIN ONES OR ALL
AWARE. PEOPLE LIVE OR WORK, SO
THE ONE IN DOWNTOWN SANTA CRUZ
IS NOW BEING USED SO THAT SOME
OF THE HIGH RISE HOUSING IS NOT
REQUIRING THE SAME AMOUNT OF
PARKING SPACES BECAUSE TRANSIT
EXISTS RIGHT THERE. THE SAME
THING IS TRUE IN WATSON VILLE,
AND THE CAPITALIST STOP IS AT
THE MALL, WHERE THERE'S MASSIVE
PARKING AND THAT ALL WORKS AND
THAT IS NOT REQUIRED PARKING
THAT THE TRANSIT DISTRICT HAS TO
PAY FOR OR DO SO THERE IS BUILT
IN STUDENT RIDERSHIP THAT ALLOWS
TO HELP FOR THE LOW INCOME
RIDERSHIP AND THERE'S TWO
DIFFERENT FUNDING SOURCES IF
THIS PASSES AND IS ALLOWED TO DO
AND THEN YOU HAVE THE OUTSIDE
MONEY FOR THE CAPITAL THINGS.
OVER TIME WITH THIS THAT MAKES
IT A SUSTAINABLE SYSTEM. I
APPRECIATE THAT. EXPLANATION AND
I THANK YOU FOR THAT. IT APPEARS
AS IF WE HAVE A QUORUM. LET'S
TAKE THE ROLE, PLEASE. SENATORS
CAVALLERO PRESENTS A ARTO
PRESIDENT BLAKE SPEAR, BLAKE
SPIRIT PRESIDENT AND DALI DURAZO
, PRESIDENT GLASER SKINNER.
WIENER WIENER PRESENT. YOU HAVE
A QUORUM. HAVE A QUORUM, SO I'LL
ENTERTAIN THAT MOTION. SENATOR
DURAZO MOVES THE BILL. UM ARE
ANY FURTHER QUESTIONS OR
COMMENTS SEEING NONE. YOU MAY
CONCLUDE. JUST APPRECIATE THE
DISCUSSION. I RESPECTFULLY ASK
FOR AN EITHER. THANK YOU VERY
MUCH. PLEASE CALL THE ROLL
MOTION IS THAT THE ASSEMBLY
AMENDMENTS BE CONCURRED IN
SENATORS CABALLERO, I SAY ARE
TOÀN TOTE? NO BLAKE SPEAR.
SHAKESPEARE I DALI DURAZO
GLASER. SKINNER WIENER WIENER. I
41 THE BILL HAS FOUR VOTES.
WE'RE GONNA KEEP THE ROLE OPEN
FOR THE ABSENT MEMBERS. THANK
YOU VERY MUCH FOR BEING ON TIME
AND GOOD PRESENTATION, SO WE'LL
LEAVE THE ROLL OPEN. AND TAKE A
BREAK PERIOD FOR A SECOND.
OKAY, WE'RE GONNA. OPEN THE ROLL
AGAIN FOR THE GOVERNANCE AND
FINANCE COMMITTEE. WE HAVE ONE
BILL SB 8 62. PLEASE CALL THE
ROLL FOR THE ABSENT MEMBERS
MOTION IS THAT THE ASSEMBLY
AMENDMENTS BE CONCURRED IN BUT
THE CHAIR VOTING I SENATORS
DOLLY! GLASER GLASER I. SKINNER
FRIDAY ONE THE BILL IS OUT 5 TO
1, AND THIS CONCLUDES OUR
COMMITTEE HEARING FOR TODAY. THE
YES. OKAY NEVER MIND. WE'RE
GOING TO KEEP THAT ROLE OPEN FOR
ONE LAST ABSENT MEMBER.
HMM. SO WE'RE BACK ON IN THE
SENATE GOVERNANCE AND FINANCE.
WE HAVE WON THE ONE BUILD. SB 8
62 BY SENATOR LARD. PLEASE CALL
THE ROLL. MOTION IS THAT THE
ASSEMBLY AMENDMENTS BE CONCURRED
IN WITH THE CHAIR VOTING I
SENATORS DOLLY SKINNER, SKINNER,
I 6 TO 1. THAT BILL IS OUT, AND
THAT CONCLUDES OUR HEARING
TODAY. UM AND THANK YOU FOR
PARTICIPATING.