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Home My WebLink About4.04 Prop 42 Transportatn CITY CLERK File #660-40 AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 5, 2002 SUBJECT: Support of Proposition 42, the Transportation Congestion Improvement Act Report Prepared By: Jason Behrmann, Administrative Analyst ATTACHMENTS: RECOMMENDATION: 1) 2) 3) 4) Resolution Proposition 42 Ballot Label and Text Regional Transportation Project List Proposition 42 Supporters Adopt the Resolution FINANCIAL STATEMENT: None DESCRIPTION: The League of California Cities has requested that cities lend their support to Propos.ition 42, the Transportation Congestion Improvement Act. Proposition 42 is a constitutional dedication of the sales tax revenues on gasoline to transportation purposes. Currently the state levies two tyPes of taxes on gasoline and diesel fuel: · An excise tax of 18 cents on each gallon of gasoline and diesel fuel. · A sales tax on the sales of gasoline and diesel fuel. The statewide rate is 6 percent. Revenues from the state excise tax on gasoline and diesel fuel used on public roads total about $3 billion a year. These revenues are dedicated to transportation purposes. Revenues from most of the state sales tax on diesel fuel are also used for transportation. However most of the revenues from the state sales tax on gasoline have historically been used for various general purposes, including education, health, social services and corrections. Only a small portion of the state gasoline sales tax revenues have been used for transportation. Proposition 42, before the voters in March 2002, will provide a significant injection of new revenue for the entire transportation system and for a variety of multi-modal purposes. H/cc-forms/agdastmt. doc COPIES TO: ITEM NO. Beginning in 2008-09 and every year thereafter, funds generated from the sales tax on gas would be allocated 40% to the State Transportation Improvement Program (STIP), 20% to counties for maintenance, rehabilitation, reconstruction and storm damage, 20% to cities for the same purposes, and 20% to transit. Revenue generated from the sales tax on gasoline is projected to reach $1.4 billion by 2008-09, meaning the STIP would receive approximately $560 million, counties and cities $280 each and transit $280 annually. Proposition 42 allows the 40/20/20/20 formula above to be changed, but only by a two-thirds-vote of the Legislature. Proposition 42 also protects funds that were committed to the Govemor's Traffic Congestion Relief Plan, according to AB 2928 (Chapter 91, Statutes 2000). The funds from AB 2928 would be allocated from 2003-04 until 2007-08. This protection would be locked in from the year 2003-2004. The chart below indicates the projected revenue distribution for the City of Dublin. Although AB 2928 does not go into effect until FY 2003-2004, revenues will be borrowed from the State Highway Account (SHA) and paid to cities during FY 2001-2003. To date the City has received two quarterly payments for a total of $48,660.62. Please note that there is no funding shown in FY 2006-2008 due to the repayment of the loan to the SHA. I FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07.[FY 2007-08 FY 2008-09 1 v $ 81,769 $ 91,990 $ 101,075 $ 110,729 $ 120,382 $ - ~$ - $ 306,633 Proposition 42 does contain some flexibility for the Govemor to suspend the shift to transportation for a fiscal year if both of the following conditions are met: 1) The Governor issues a proclamation that "declares that the transfer of revenues will result in a significant negative fiscal impact on the range of functions of government funded by the General Fund of the State." 2) The Legislature by a two-thirds vote in a stand-alone bill concurs with the suspension. RECOMMENDATION: Staff recommends that the Council adopt the Resolution supporting Proposition 42. RESOLUTION NO. - 02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN SUPPORTING PROPOSITION 42 WHEREAS, Proposition 42 will help make our roads safer and reduce traffic without higher taxes by requiring the gasoline sales tax we already pay to improve mass transit, highways and local roads; and WHEREAS, Proposition 42 is based on the principle that taxes paid at the gas pump should be used for transportation purposes; and: WHEREAS, traffic is paralyzing travel with Los Angles now ranked the number one most congested urban area in the country, San Francisco/Oakland second, San Diego sixth and Sacramento, San Jose and San Bemadino/Riverside following close behind; and WHEREAS, with our neglected transportation system needing attention, California has the most deteriorated roads in the nation and more that 6,000 of our bridges and overpasses are structurally deficient or no longer meet highway safety or design standards; and WHEREAS, Proposition 42 will provide a stable and ongoing source of transportation funding that will make it possible to plan for our future transportation needs; and WHEREAS, Proposition 42 will guarantee funds to every city and county to help fix potholes and repair dangerous road conditions; and WHEREAS, Proposition 42 will help speed up highway safety and traffic relief projects, and expand and improve mass transit systems; and WHEREAS, all Proposition 42 projects will be subject to an annual audit and standard accounting practices to ensure they are delivered on time and on budget; and WHEREAS, by speeding up transportation projects thousands of new construction and other jobs will be creat&d, our economy will be stimulated and every dollar invested in our highways will result in almost six times that in economic benefits. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby supports ProPosition 42. PASSED, APPROVED AND ADOPTED this 5th day of February, 2002. AYES: NOES: ABSENT: ATTACHMENT 1 ABSTAIN: ATTEST: Mayor City Clerk Official Ballot L~el for Proposition 42: T~NSPORTATION CONGESTION IMPROVEMENT ACT. ALLOCATION OF EXISTING MOTOR VEHICLE FUEL SALES AND USE TAX REVENUES FOR TRANSPORTATION PURPOSES ONLY.. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Requires, effective July 1, 2003, existing revenues resulting from state sales and use taxes on the sale of motor vehicle fuel be used for ~ransportation purposes as provided by law until June 30, 2008. Requires, effective July 1, 2008, existing revenues resulting from state sales and use taxes be used for public transit and mass transportation; city and county s~ree~ and road repairs and improvements; and state 'highway improvements. Imposes the requirement for a two-thirds of the Legislature to suspend or modify the percentage allocation of the revenues. Fiscal ImpacT: Starting in 2008-09, about $1.4 billion in state gasoline sales tax revenues, Increasing annually thereafter, would continue to be used for state and local transucr~a~ion purposes. Proposition 42 Text: Assembly Constitutional Amendment No. 4--A resolution To propose Eke people of the State of California an amendment to the Csns%i~uuicn cf uhe Sta~e, by adding Ar~ic!e XiXB ~hereuc, rela~ing ~rans~sr~a~icn. LEGISLATIVE COUNSEL'S DIGEST A-A~ 4, D,~_=.- ""~- Transportation funding: sales and use ~ax revenues. The Sales and Use Tax Law imposes a =ax on the gross receipus from ~ne sale in 5his sTaue of, or the storage, use, or other consum, p=ion in 5his sta~e of, tangible personal property. That law requires revenues derived from those taxes to be deposited in the Retail Sales Tax Fund.' Existing law requires =he balance of that fund remaining afler various specified allocations to be allocated =o the General Fund. This measure wcu!d, for the 2003-04 fiscal year and each fiscal year thereafter, require -=? moneys that are collected during the fiscal year under the Sales and Use Tax Law, with respect To the sale or use of motor vehicle fuel, and that are required to be transferred to the General Fund pursuant to that law, to instead be transferred to the Transportation Investment Fund. This measure would, for the 2003-04 To 2007-08 fiscal years, inclusive, require moneys in that fund to be allocated for transportation purposes as provided in a specified statute. This measure would, for the 2008-09 fiscal year and each fiscal year thereafter, require moneys in the fund to be allocated only for transportation purposes specified by this measure, and would specify the allowable percentage amount to be allocated for each specified transportation purpose. This measure would allow the Legislature to suspend or modify these requirements under certain circumstances, if the act so providing is approved by 2/3 of the entire membership of each house of =he Legislature. ATTACHMENT 2 WHEREAS, Ca!ifcrnia's continuing economic prosperity and quality cf life depend, in no small part, upon an expansive and efficient transpcr~ation system; and WHEREAS, The need To maintain, expand, and improve California's multimoda! transportation system increases as California continues grow; and WHEREAS, Public investment in transportation has failed to keep w_=n California's growth, and additional fiscal resources are pace ~' needed simply to maintain, much less expand, California's transportation system; and WHEREAS, The failure to address California's transportation funding needs will drain economic vitality, compromise public safety, and erode quality of life; and WHEREAS, It is now necessary to address California's transportation problems by providing additional state funding, in a manner that protects existing constitutional guarantees set forth in Section 8 of Article XVI of the California Constitution, for the f"~'~-..-_.., of public education; now, therefore, be it Aesclved by ~ne Assembly, the SenaTe concurring, That the Le~islature~ of '~_.._ St=~=-__ cf Ca!ifcrnia ='t it=_ 2001-02 Regular S=~sion commencing on ~he fourth day of Dece.~er 20C0, t'wo-thirds of the membership of each house concurring, hereby proposes to the people of the St===--_ of California that the Constitution of the State be amendea by adding Article XiXB thereto, to read': ARTICLE XiXB M~TCR VEH_CLE FUE~ SALES TA.X REVENUES ~N~ TRANSPORTATION .... FUN21}~S SECTION !. (a) For the 2003-04 fiscal year and each fiscal year ~hereafter, all moneys that are collected during the fiscal year from taxes uncer the Sales and Use Tax Law (Part ! [commencing with Sertlcn 6001' of DivisiTn 2 of %he Revenue and Taxation Code), cr any sucuesscr to that law, upon ~he sale, storage, use, or o~her consumption in this S=a=e of molor vehicle fuel, and that are de~c=~-=~~ ....- in the General Fund of the State pursuant to that law, shall be transferred =o the Transportation Investment Fund, which is he-=by created in the State Treasury. ~b~ il) For the 2003-04 to 2007-08 fiscal years, inclusive, moneys in the Transportation In,es= ....... Fund shall be allocated, upon appropriation by the Legislature, in accordance with Section 7104 of the Revenue and Taxation Code as that section read on the operative date of ~his article. {2) For the 2008-09 fiscal year and each fiscal year thereafter, moneys in the Transportation Investment Fund shall be allocated solely for the following purposes: (A} Public transit and mass 'transpor=ation. (B} Transportation capital improvemen~ projects, subject to the laws governing the. State Transportation Improvement Program, or any successor to that program. (C) Street and highway maintenance, rehabilitation, reconstruction, or storm damage repair conducted by cities, including a city and county. (D) Street and highway maintenance, rehabilitation, reconstruction, or storm damage repair conducted by counties,. including a city and county. (c) For the 2008-09 fiscal year and each fiscal year thereafter, moneys in the Transportation Investment Fund shall be allocated, upon appropriation by the Legislature, as follows: ~.~. Twenty percent of the moneys for the purposes set forth in subparagraph (A) of paragraph (2) of subdivision (b). [B) Forty percent of the moneys for the purposes set forth in subparagraph (B) of paragraph (2) of subdivision (b). (C} TwenTy percent of the moneys for the purposes set forth in subparagraph (C) of paragraph (2) of subdivision (b). (D) Twenty percent of the moneys for the purpose set forth in subparagraph (D) of paragraph (2) of subdivision (b). (d) The transfer of revenues from the General Fund of the State to the Transportation Investment Fund pursuant to subdivision (a) may be suspended, in whole or in part, for a fiscal year if both of the fcilowing conditions are met: (I) The Governor has issued a proclamation that declares that the ~ransfer cf revenues pursuant to subdivision (a) will result in a significant negative fiscal impact on the range of functions of government funded by the General Fund of the State. {2) The Legislature enacts by statute, pursuant to a bill passed in each house of the Legislature by rol!ca!l vote entered in the jcurnal, ~wo-~hirds of the membership concurring, a suspension for uha~ fiscal year of the transfer of revenues pursuant to subdivision (a! u-ov-~d tha~ the bill does not contain any other unrelated provision. (e) The Legisla=ure may enact a statute That modifies the Der~enTace shares se~ =~-' in . _ ~_.n subdivision (c) by a bill passec in each hcuse of the Legislature by roiica!! roue entered in =he ~ournal, ~wc-~hirds of ~he membership concurring, provided that the bill does not contain any other unrelated provision and ~hau ~he moneys described In subdivision (a) are expended solely for the ~ forth in paragraph (2) of subdivision (b). purposes Prop. 42 will help speed up hi.qhway, street and mass transit improvements. It also .quarantees every city and county additional funds to repair and maintain local roads. Here's a few examples of re.qional proiects awaitin.q completion: Alameda · Extending rail service to Livermore · Widening Rte. 84 from 4 to 6 lanes from Livermore to Sunol · Westbound truck climbing lane over Altamont Pass · Adding train service across the Dumbarton Bddge Contra Costa · Extending rail service to Antioch · Speeding up work on fourth bore for Caldecott Tunnel · Expansion of 680/Route 4 interchange · Improvements to State Route 4 Fresno · Extension of Highway 180 from Highway 33 to I-5 · Improvements to Highway 99 · Traffic improvements to and widening of Hemden Avenue · Expansion of public transit Kern · Widening and improving Highway 99 · Widening and improving State Route 58 in Bakersfield Los Angeles · . Improving the San Diego Freeway (405) and the Ventura Freeway (101) interchange and travel over Sepuiveda Pass · CoUntywide freeway improvements including I-5, 1-10, Route 14, Route 60, and U.S. 101 · Expansion of Metro Rapid Bus service · Expansion of rail service to Pasadena, East Los Angeles and West Los Angeles · Construction of a Busway in the San Femando Valley along the Burbank/Chandler corridor Marin/S°noma · Speeding upwidening of 101 · Expansion of ferry service · New 580/101 connecting ramps Napa/Solano · Widening/improving 80/680/Route 12 interchange · Widening 680 to 6 lanes north of the Benicia Bddge · Expansion of Route 29 from Route 12 to Solano County Orange County · Fixing freeway bottlenecks on the 405 from Wamerto Beach Blvd., the 55 freeway, the 5 and the 91 · Expansion of MetroLink commuter rail service by doubling existing Metrolink dudng peak pedod operations and adding new service from Fullerton to Laguna Niguel · Increasing "Bus Rapid Transit" service on Beach and Harbor Blvds. Riverside · Railroad grade separation on major streets · Improving MetroLink Service · Improvements to 1-215 11/29 · Widening of 1-15 from Temecula to Corona · Construction of a new East-West corridor between Riverside and Orange County · Interchange improvements along 1-10 in Coachella Valley · Improvement of local bus services Sacramento · Light rail from downtown to Sacramento International Airport · Improvements on Hwy. 50 and 1-80 east of downtown · Improvements to local roads and local bus service San Bernardino · Improvements to 1-10 · Widening of 1-215 between San Bemardino and Riverside · Widening of 1-15 in the Cajon Pass · Expansion of MetroLink commuter rail service San Francisco · Improvements to Doyle Dr. approach to Golden Gate Bddge · Speeding up extension of light rail service underground into Chinatown · Replacement for Transbay Terminal San Diego · Widening of I-5 throughout the county · Widening of 1-15 from Keamey Mesa to Escondido · Rail transit expansion and improvements San Joaquin Valley · Widening and improvements to Highway 99 · Expansion of ACE commuter rail service to Bay Area · Expansion of public transit system San Luis Obispo · Widen Route 46 to four lanes from Paso Robtes to Fresno San Mateo · Speeding up interchange improvements along 101, including Willow Road, University Avenue and Broadway · Widening Route 92 from 4 to 6 lanes between 101 and 280 · Speeding up electrification of Caltrain from SF to Gilroy Santa Clara · Speeding up work on widening 101 from 6 to 8 lanes from Metc. alf Road to Cochrane Road · Widening 880 to 8 lanes from Route 237 to 101 · Speeding up construction of BART from Warm Spdngs to San Jose Ventura · Widening Route 23 between Moorpark and Thousand Oaks · Widening 101 freeway from Johnson Ddve in Ventura to Vineyard Avenue in Oxnard A-FI-ACH MENT 3 on the Ballot? Po!. i_ce,...Fire,~d pUblic.S~e~ Cal~ornia HSg~waY ::P ~C On~ D~ght Hetm~ck California Hie ~ay Patroi Co Zoner M an (Retired) * Cali~%m/~: ~g~y'Par~oi C ~oner J.E.::"Jim'.s~rh ~e~ C~omia State ~ce o~ Eme~ea~ S~fiCes D~or D'~ Jones C~fornia Fire: ~:~m~a~on C~omia Or~mrio~O{:po~ce~md: Sh~s (COPS) T~p.a~ er C~ornia Taxpaye~m~ · California Tax,payer P ion. CoOtie National Tax ~arioni~:C ee B'ume Counw Ci~ze~ for Beder F~e~on ASSodatio~: Kern Co~t7 T~payer~ 4~$0cia~ion M~dn Umred T~payem Orange Co~ty T~p afion SB.~ra Counw T:~Xpaye~°~tion Uv~red C~ifor~ for T~ W~re Watche~ Transportation and'~gh~5ay'Safe ~..~ AU%mobile CIuB::Of Southern. California Cal/~ornia State Aur0mc~b~e '~OciatiOn - St:ructur~ EnamOrs 'Ai~6ciition ~of C~o~a C~ifornia Tr~sk AssOciation C~ornia Com~urers C~ornia ~sociadon o[Counc~ °f Govemm~t CMi~ornia Refund America AI-I-ACHM ENT 4 California Association for Coordinated Transportation ~ Infrastructure Delivery Council Rail Passenger Association of California RAILVOTE Self-Help Counties Coalition Metropolitan Transportation Commission (Bay Area) Amador County Transportation Commission California Association of School Transportation Officials, Chapter 1 (San Bernardino County) Contra Costa Transportation Authority Council of Fresno County Governments Fresno County Transportation Authority * Glenn County Transportation Commission * Livermore/Amador Valley Transit Aur. hority* Madera County Transportation Commission Mendocino Council o£ Governments Merced County Association of Governments Modoc County Transportation Commission Transportation Agency for Monterey Count7~ Napa County Transportation Planning Agency ~ Nevada County Transportation Commission Orange County Transportation Authority Riverside County Transportation Cornrni~ion Sacramento Area Council of Governments San Diego Association of Governments San Joaquin Council of Governments Santa Clara Valley Transportation Authority Santa Cruz County Regional Transportation Commission Tulare County Association of Governments Venmra County Transportation Commission Transportation California The Transit Coalition Business, Labor, Local Government, Education and Others California Alliance for Jobs California Chamber of Commerce California State Association of Counties Lc%mae of California Cities Marian Bergeson, Former Member, California State Board of Education Associated General Contractors of California California Business Roundtable California Conference of Carpenters California State Council of Laborers Consulting Engineers and Land Surveyors of California International Union of Operating Engineers, Local Union 3 (Northern California) International Union of Operating Engineers, Local 12 (Southern California) State Building and Construction Trades Council of California County of Plumas * County of Siskiyou County of Tuolumne City of Brea City of Clayton City of Marina American Public Works Association, Sacramento Chapter Lake County/City 'Area Planning Council Hon. Dan Donahue, Councilmember, City of Vallejo and Board Member, Solano Transportation Authority Hon. Kevin R. Jenkins, School Board Member, Hanford High School District Hon. Vern D. Moss, Supervisor, Madera County * Hon. Bill Overman, Supervisor, Sisldyou County Hon. Julie Pierce, Mayor, City of Clayton and · Comm{qsioner, Contra Costa Transportation Authority Hon. Richard Shoemaker, Supervisor, Mendocino County Hon. Joan Smith, Supervisor, Siskiyou County ~ Chris Stampolis, Chair, Planning Commission, City of Santa Clara Dr. David Stine, President, San Bernardino County School Board Hon. Tom Stallard, Supervisor, Yolo County Amalgamated Transit Union, California Corr/erence Board American Council of Engineering Companies Asphalt Pavement Association California Association for Local Economic Development California Building Industry Association California Business Alliance California Business Properties Association California Cast Metals Association California Cement Promotion Council California Dump Truck Owners Association California Hotel & Lodging Association California Moving and Storage Association California State Association of Electrical Workers Construction Materials Association of California Engineering and Utility Contractors Association * Engineering Contractors' Association Flasher/Barricade Association Laborers International Union Regional Council of Rural Counties * Northern California District Council of Laborers Southern California Contractors Association Structural Engineers Association of Southern California Anaheim Chamber of Commerce Apple Valley Chamber o£ Commerce Associated General Contractors of California, San Diego Chapter Avignon Home Owners (Valencia) Bay Area Coundl Clovis Chamber of Commerce Construction and General Laborers' Union, Local 291 (San Rafael) Consulting Engineers and Land Surveyors of California, Peninsula Chapter Downey Chamber of Commerce Et Centro Chamber of Commerce and Visitors Bureau Escondido Chamber of Commerce Fontana Chamber of Commerce Greater Fresno Chamber of Commerce Gilroy Chamber of Commerce Hayward Chamber of Commerce Imperial County Building and Construction Trades Council Industry Manufacturers Council Inland Empire Economic partnership Laborers International Union, Local 220 '(Bakersfield) Laborers International Union, Local 270 (Santa Cruz) Laborers International Union, Local 294 (Fresno) new listing Laborers International Union, Local 585 0rent=a) Laborers International Union, Local 1082 (El Monte) Long Beach Area Chamber of Commerce Los Altos Chamber of Commerce * Los Angeles Area Chamber of Commerce Los Angeles/Orange Counties Building & Construction Trades Council * MaNn Builders Exchange Greater Merced Chamber of Commerce Milpitas Chamber of Commerce Nevada County Contractors' Association Newport Harbor Area Chamber of Commerce North Coast Builders Exchange (Santa Rosa) · Ontario Chamber of Commerce Orange Chamber of Commerce & Visitors Bureau * Otay Mesa Chamber of Commerce Plumbers and Steamfirters Union, Local 62 (Castroville) Redwood City/San Marco County Chamber of Commerce Greater Redding Chamber of Commerce Rialto Chamber of Commerce Greater Riverside Chamber of Commerce Sacramento Builders' Exchange San Diego Building and Construction Trades Council San Francisco Building and Construction Trades Council San Luis Obispo County Builders Exchange San Rafael Chamber of Commarce Santa Clara Chamber of Commerce Santa Clarita Valley Chamber of Commerce Silicon Valley Manufacturing Group Solano Economic Development Corporation South Lake Tahoe Chamber of Commerce * Sunnyvale Chamber of Commerce * United Food and Commercial Workers Union, Local 839 (Salinas) Ventura Chamber of Commerce Victorville Chamber of Commerce Visalia Chamber of Commerce