HomeMy WebLinkAboutItem 7a. SLOCOG Presentation on Countywide Self-Help Transportation Investment Plan Item 7a
Department: Public Works
Cost Center: 5010
For Agenda of: 3/5/2024
Placement: Business
Estimated Time: 30 minutes
FROM: Matt Horn, Public Works Director
Prepared By: Luke Schwartz, Transportation Manager
SUBJECT: SAN LUIS OBISPO COUNCIL OF GOVERNMENT PRESENTATION ON
COUNTYWIDE SELF-HELP TRANSPORTATION INVESTMENT PLAN
RECOMMENDATION
Receive and comment on a report and presentation by the San Luis Obispo Council of
Governments (SLOCOG) staff regarding a potential Countywide Self-Help Sales Tax
Measure and Draft Transportation Investment Plan.
POLICY CONTEXT
The City’s current Legislative Action Platform, adopted by City Council Resolution No.
11405 (2023 Series), includes a number of items expressing support for additional
funding sources to fund transportation infrastructure improvements, particularly
opportunities to increase funding for projects that support local climate action, active
transportation, and roadway maintenance priorities.
DISCUSSION
Background
On March 5, 2024, the Council will receive a presentation from the San Luis Obispo
Council of Governments (SLOCOG) regarding the potential to place a ½-cent sales tax
on the November ballot for transportation-related purposes. On February 7, 2024, the
SLOCOG Board directed staff to engage with member agencies to seek comments and
input on the potential sales tax measure, including feedback specific to the Draft Local
Road Repair & Transportation Safety Investment Plan (Attachment A).
Transportation funding for future infrastructure falls well short of the need, as
demonstrated in the 2023 SLOCOG Regional Transportation Plan (RTP), which projects
a shortfall of $2.3 billion for regional transportation projects and programs, including a
shortfall of $400 million for needed pavement maintenance alone. Tax revenues
traditionally used for improvement, operation, and maintenance of public transportation
infrastructure have not kept pace with needs and escalating construction costs. Existing
State and Federal funding are based upon an antiquated “gas tax” system of cents per
gallon of fuel. The system predated the proliferation of miles per gallon improvements to
vehicles, hybrids, ethanol fuels, and electric vehicles. While the cents per gallon fuel tax
for the state is fixed to inflation, EVs (>20% of new car sales in California) will erode the
Page 45 of 116
Item 7a
total gallons purchased, decreasing the tax revenues collected. Further, the federal gas
tax has had no adjustment in over 30 years; thus, available revenue from fuel taxes have
not kept up and will only diminish over time.
California State Senate Bill 1 (SB 1), approved in 2017, brings in over $5 billion statewide
and approximately $1.2 million annually locally to San Luis Obispo for the purpose of
funding street repairs. This additional revenue has been helpful; however, the costs for
needed road maintenance and transportation improvement projects and programs of
most cities and counties still often exceed the resources available.
To address these issues, many counties and cities in California have chosen to tax
themselves for transportation services and infrastructure and not rely solely on the State
and Federal funding sources that can be volatile and unreliable. A dedicated local
transportation sales tax has been approved in 25 counties in California. These self-help
counties”1 represent roughly 88% of the state’s population. Local transportation sales tax
measures can provide regional and local authorities with access to a stable funding
source to allow for delivery of timely, cost-efficient transportation improvements to their
communities, and provide additional leverage and “local match” contributions to compete
for outside state and federal grant funding. Adding San Luis Obispo County to the list of
California’s would help unlock hundreds of millions of dollars in additional transportation
funding, guaranteeing, and delivering much -needed transportation improvements and
repairs for our residents and to our communities.
A previous ½-cent transportation sales tax measure (Measure J) was presented to San
Luis Obispo County voters in 2016 and received 66.3% support, just shy of the 66.67%
(2/3rd) super majority support threshold required for special tax measures in California.
With the failure of Measure J, the region lost out on over $180 million in funding over the
last six years, which could have easily doubled by leveraging these funds towards
competitive State and Federal grants. Transportation conditions and needs have not
notably changed in the region since 2016, while transportation funding through gas tax
revenue has faces its latest challenge with a growing share of electric vehicles.
At its meeting in February 2024, the SLOCOG Board received information on the
extensive outreach efforts and productive polling results collected for a potential new ½-
cent transportation sales tax and approved a conceptual investment plan and funding
distribution formula. The Board directed staff to work with member jurisdictions to develop
the final Transportation Investment Plan, and safeguards for evaluation to place on the
November 2024 ballot for voter consideration. The term “safeguards” refers to provisions
that protect taxpayer interests to ensure that projects and programs funded by the
proposed voter-approved measure are delivered as promised. As noted further below and
in Attachment A, proposed safeguards with this measure include a required 20-year
sunset date, independent auditing and reporting, a cap on allowable administrative costs,
and requirement for an independent taxpayer oversight committee.
1 “Self-Help Counties” are counties with voter-approved local transportation sales tax measures, used to
fund road repairs, highway and road improvements, transit, bicycle and pedestrian transportation
enhancements.
Page 46 of 116
Item 7a
Details of Proposed Self-Help Measure and Investment Plan
Considering feedback from the previous Measure J effort, recent polling and focus
groups, SLOCOG has prepared a draft Transportation Investment Plan for a potential
2024 measure. In its current form, the proposed ½-cent transportation sales tax measure
would include the following:
1. Sunset: 20-year duration.
2. Revenues: $35 million annually, or $700 million over 20 years (not accounting for
escalation).
3. Leverage Potential: Potential to return an additional $900 million over 20 years in
competitive State and Federal Grants.
4. Funding Distribution:
a. Funds distributed to four (4) geographic subregions based on population
(North Coast, South County, Central County, North Coast)2
b. Within each subregion, 66% of funds are distributed directly to each
jurisdiction for local projects (with a $3 million increase to the four smallest
cities), with remaining 34% of funds allocated to regional projects within
each subregion.
c. Eligible Local Transportation Improvement Categories:
i. Road Repairs
ii. Community Road Safety & Congestion Improvements
d. Eligible Regional Transportation Improvement Categories:
i. Regional Road Safety Improvements
ii. Mobility for All (i.e. transit, senior services, and active transportation)
5. Impact on the City of San Luis Obispo3,4:
a. $77 million over 20 years ($3.85 million per year) total towards local
projects:
i. $37 million over 20 years ($1.85 million annually) towards Road
Repairs.
ii. $40 million over 20 years ($2 million annually) towards local
Community Road Safety & Congestion Improvements, which could
be used towards projects such as Broad Street Corridor
Improvements, Prado Road Corridor Improvements, Tank Farm
2 See Attachment A for illustrative map of subregions. Subregions are consistent with geographies defined
in the SLOCOG Regional Transportation Plan.
3 Revenues cited below reflect anticipated values in current year dollars, not accounting for escalations
over time. Escalated value of revenues anticipated over the 20-year life of the proposed measure would be
higher.
4 $154 million in total revenues are projected over 20 years to the “Central County” region, which includes
the City of San Luis Obispo, Avila Beach, and a portion of unincorporated county.
Page 47 of 116
Item 7a
Road Improvements, Safe Routes to School and Active
Transportation projects, and Vision Zero/Traffic Safety
improvements.
b. $52 million over 20 years towards regional projects in the “Central County”
subregion, such as US 101 Corridor Improvements, Highway 227 Corridor
Improvements, improved public transit services, and regional
pedestrian/bicycle trail connections.
6. Safeguards:
a. 1% administrative expense cap
b. Independent Taxpayer Oversight Committee
c. Annual independent audit and reporting
d. Strategic implementation plan required to be developed with local input
groups.
e. Requirements that funding be used to augment, not replace local funds.
In addition to the Draft Local Road Repair & Transportation Safety Investment Plan
provided as Attachment A, additional details on this item are provided in the February 7,
2024 SLOCOG Board Staff Report, which is included as Attachment B.
Next Steps
SLOCOG staff will be holding stakeholder feedback sessions with the various agencies
in the region throughout March and April to solicit input on the potential sales tax measure
and Draft Investment Plan, before returning to the SLOCOG Board on May 1 st to
determine next steps. If the SLOCOG Board chooses to continue advancing this measure
towards the November ballot, this item will return to the San Luis Obispo City Council in
May (currently scheduled for May 7, 2024). At that hearing, it is anticipated that SLOCOG
staff would present proposed ballot lan guage, a refined Transportation Investment Plan,
more specific details on how the potential revenues would be administered to local
agencies, and more information on the taxpayer oversight committee and other proposed
safeguards. Ultimately, the Council will also be asked to consider a proposed resolution
of support for the transportation sales tax measure as part of this follow-up hearing.
Previous Council or Advisory Body Action
On June 21, 2016, the City Council adopted a resolution approving the 2016 San Luis
Obispo County Self-Help Transportation Investment Plan. As mentioned above, this
previous sales tax measure (Measure J) was ultimately unsuccessful at the November
2016 General Election. This hearing is the first formal presentation to the City Council on
the 2024 Countywide Self -Help Transportation Sales Tax Measure proposal.
Page 48 of 116
Item 7a
Public Engagement
This item is on the Council Agenda for the March 5, 2024, and staff will follow all required
postings and notifications. The public may have an opportunity to comment on this item
at or before the meeting. Should there be SLOCOG Board support to continue advancing
this measure towards a potential November ballot initiative following initial outreach, this
item will return to the City Council in May, 2024, for further discussion.
CONCURRENCE
This staff report was reviewed and approved by the City Public Works Department,
Finance Department, City Attorney and City Administration.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report because the action does not constitute a “Project” under CEQA
Guidelines Section 15378. All projects funded with potential future transportation sales
tax funds will be required to complete appropriate CEQA analysis and other
environmental review as required.
FISCAL IMPACT
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ N/A $ $ $
State
Federal
Fees
Other:
Total $N/A $ $ $
There are no immediate fiscal impacts to the City by supporting the Draft Countywide
Transportation Investment Plan, or in supporting the potential addition of a transportation
sales tax measure on the ballot in November. Based on the projected total revenues of
$35 million/year for the region ($700 million over 20 years without cost escalations), the
City would directly receive $77 million in local funding, should the measure be passed by
voters, which could provide funding for many eligible local road repair, congestion relief,
active transportation, and safety projects. Additionally, the City would capture and benefit
from many millions of dollars from the Central County Regional investments--$52 million
(un-escalated) --for regional road safety, public transportation, and active transportation
projects and improvements. There would be no direct costs to the City related to adding
this proposed measure to the November ballot, as the full costs would be funded by
SLOCOG.
Page 49 of 116
Item 7a
ALTERNATIVES
The Council may choose not to provide feedback regarding a potential sales tax
measure or the Draft Countywide Transportation Investment Program at this time.
SLOCOG staff will be returning to the SLOCOG Board in early May, 2024, to share
feedback received through stakeholder outreach and to receive direction on next steps,
which could include refinements to the proposed measure and Investment Plan and
direction on whether or not to continue advancing this proposal to the November ballot.
If this measure continues forward, the City Council would have another opportunity for
questions and feedback later this spring; however, if the Council chooses not to provide
feedback at this March 5th session, there would be less time for SLOCOG staff and Board
to consider the City’s feedback and less opportunity to ensure that the City’s interests and
priorities are properly reflected in the final ballot measure and Transportation Investment
Plan details.
If City of San Luis Obispo and/or other jurisdictions do not support the proposed sales tax
measure or Transportation Investment Plan, it could result in the SLOCOG Board or
County Board of Supervisors deciding not to place the self-help transportation sales tax
measure on the November 2024 ballot. The current Regional Transportation Plan is
underfunded by $2.3 billion based on current revenues; thus, many planned local and
regional transportation maintenance and improvement projects will not be feasible without
some form of augmented funding capacity.
ATTACHMENTS
A - Draft Local Road Repair & Transportation Safety Investment Plan
B - February 7, 2024, SLOCOG Board Staff Report on Regional Self -Help Measure
Page 50 of 116
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 1-31-24
LOCAL ROAD REPAIR
& TRANSPORTATION SAFETY
INVESTMENT PLAN SUMMARY
$700 M
Funded by a proposed half-cent sales tax, requiring two-
thirds voter-approval. Twenty-five counties throughout
California have passed similar measures, choosing
to fund transportation projects and infrastructure
improvements within their local communities. These
measures ensure that all funds raised stay local and
cannot be stolen by Sacramento. Enacting such a
measure would also return a fair-share of State and
Federal funds to San Luis Obispo County by qualifying
the region for an additional $900 million in competitive
grants.
20 YEARS
If placed on the ballot and approved by voters, the
proposed measure would ensure a dedicated, reliable
source of funding to address road repair and critical
safety needs for the next 20 years.
Total funding distributed by subregion
based on population, over 20 years
$100M, 14%
North Coast
Morro Bay,
Cambria,
Cayucos,
Los Osos
$154M, 22%
Central County
San Luis Obispo,
Avila Beach
$246M, 35%
North County
Atascadero, Paso Robles,
San Miguel, Creston, Santa
Margarita, Shandon,
Templeton
$200M, 29%
South County
Arroyo Grande, Grover
Beach, Pismo Beach,
Nipomo, Oceano 1includes 1% maximum administration fee,
unescalated for inflation
1
Page 51 of 116
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 1-31-24
$162 M
66%
$84 M
34%
NORTH COUNTY PROJECTS
$246 M
Local Projects - 66%$162 M
Atascadero $49 M
• Road Repairs to El Camino Real, Traffic Way, Santa Lucia Road, & San Gabriel Road $30 M
• Community Road Safety & Congestion Improvements
°US 101 corridor congestion/safety improvements to overcrossings, intersections, interchanges,
signalization, ramps, parallel routes (San Anselmo Avenue and Santa Rosa Road)
°Local Road Safety Improvements, bridges, guardrails, road widening, pavement edge
improvements
°Safe Routes to School and trail & walkway connectivity
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$19 M
Paso Robles $52 M
• Road Repairs to Union Road, Paso Robles St., Creston Rd, Niblick Rd, Spring St, Commerce $30 M
• Community Road Safety & Congestion Improvements
°US 101 corridor congestion/safety improvements to overcrossings, intersections, interchanges,
signalization, ramps, parallel routes
-Highway 46E (US 101 to Jardine Rd.) safety improvements / Union Overcrossing
-Salinas River Trail & Eastside “Grand Loop” bikeway
-US 101 / Highway 46W interchange improvements
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$22 M
Local Projects
Regional Projects
P
a
s
o
R
o
b
l
e
s
S
a
n
M
i
g
u
e
l
S
a
n
t
a
M
a
r
g
a
r
i
t
a
At
a
s
c
a
d
e
r
o
Cr
e
s
t
o
n
S
h
a
n
d
o
n
O
t
h
e
r
/
U
n
i
n
c
o
r
p
.
T
e
m
p
l
e
t
o
n
R
e
g
i
o
n
a
l
R
o
a
d
S
a
f
e
t
y
M
o
b
i
l
i
t
y
f
o
r
A
l
l
$80 M
$70 M
$60 M
$50 M
$40 M
$30 M
$20 M
$10 M
Page 52 of 116
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 1-31-24
NORTH COUNTY PROJECTS
San Miguel
• Road Repairs and Safety Improvements to Mission St. Sidewalks
$9 M
Creston
• Safety improvements to Highway 41/Creston/La Panza intersection
$2 M
Santa Margarita/Garden Farms
• Downtown Safety Improvements to Highway 58
• Road Repairs and Safety Improvements
$6 M
Shandon
• Centre Street safety and revitalization
• Road Repairs, Paving, and Safety Improvements
$5 M
Templeton
• Road Repairs and Safety Improvements (Vineyard Dr. and others)
• Local Interchange improvements
$21 M
Other/Unincorporated $18 M
• Road Repairs and Safety Improvements for all North County Unincorporated areas $6 M
• Community Road Safety & Congestion Improvements
°US 101 corridor congestion/safety improvements to overcrossings, intersections, interchanges,
signalization, ramps, parallel routes
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$12 M
Regional Projects - 34%$84 M
Regional Road Safety Improvements
• Highway 46E (US 101 to Jardine Rd.) safety improvements, including Union Road intersection $30 M
• North County US 101 Regional Safety Corridor Improvements
°At US 101 Northbound off-ramp to Highway 46E
°Between Cuesta Grade and San Miguel, to address safety, mobility, and congestion issues (i.e.
lanes, interchanges, crossings, ramps, bus, vanpool, parallel routes)
$37 M
• US 101 Northbound off-ramp to Highway 46E
Mobility for All $17 M
• Public Transit for Seniors, Persons with Disabilities, and Veterans $7 M
• Active Transportation (Bicycle & Pedestrian)
°Templeton, Vineyard Drive improvements
°Salinas River/N. Anza Trail corridor
°Paso Robles River Trail/Grand Loop trail
°Atascadero Westside corridor
$10M
TOTAL $246 M*Dollar amounts shown in millions (M) reflect estimates from a half-cent sales tax generating $35M/year
for 20 years, unescaleted for inflation. Actual dollar amounts may fluctuate based on local retail sales and
inflation, but distributions are guaranteed as a relative percentage of total funds collected.
Page 53 of 116
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 1-31-24
$132 M
66%
$68 M
34%
SOUTH COUNTY PROJECTS
$200 M
Local Projects - 66%$132 M
Arroyo Grande $33 M
• Road Repairs to Grand, N. Oak Park, E. Branch, W. Branch, James Way, El Camino Real, Traffic Way $29 M
• Community Road Safety & Congestion Improvements
°US 101 corridor congestion/safety improvements to over/undercrossings, intersections,
interchanges, signalization, ramps, parallel routes in the Five Cities area
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$4 M
Grover Beach $24 M
• Road Repairs on Grand, Oak Park, 4th, El Camino Real, Farroll, Atlantic $16 M
• Community Road Safety & Congestion Improvements
°US 101 corridor congestion/safety improvements to over/undercrossings, intersections, inter-
changes, signalization, ramps, parallel routes in the Five Cities area
°Intersection improvements, Boardwalk maintenance/extensions
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$8 M
Local Projects
Regional Projects
G
r
o
v
e
r
B
e
a
c
h
Pi
s
m
o
B
e
a
c
h
O
c
e
a
n
o
A
r
r
o
y
o
G
r
a
n
d
e
Ni
p
o
m
o
O
t
h
e
r
/
U
n
i
n
c
o
r
p
.
R
e
g
i
o
n
a
l
R
o
a
d
S
a
f
e
t
y
M
o
b
i
l
i
t
y
f
o
r
A
l
l
$50 M
$40 M
$30 M
$20 M
$10 M
Page 54 of 116
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 1-31-24
SOUTH COUNTY PROJECTS
Pismo Beach $16 M
• Road Repairs to Bello, Cypress, 4th, Five Cities, Price Canyon Rd., Hines $8 M
• Community Road Safety & Congestion Improvements
°US 101 corridor congestion/safety improvements to over/undercrossings, intersections,
interchanges, signalization, ramps, parallel routes in the Five Cities area
°Intersection improvements, Promenade maintenance/extensions
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$8 M
Nipomo
• Road Repairs and Safety Improvements to roads in Nipomo, Black Lake, Woodlands, Callender;
Tefft, Orchard, Thompson, and Pomeroy
• Local Interchange improvements
$24 M
Oceano
• Safe Routes to School, Beach Access
• Road Repairs, Sidewalks, and Safety Improvements to 4th, 13th, 17th, 22nd, Elm, Pier
$11 M
Other/Unincorporated $23 M
• Road Repairs to Halcyon, Price Canyon, Orcutt, Lopez; and Safety Improvements for all South
County Unincorporated areas
$12 M
• Community Road Safety & Congestion Improvements
°US 101 corridor congestion/safety improvements to overcrossings, intersections, interchanges,
signalization, ramps, parallel routes
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$11 M
Regional Projects - 34%$68 M
Regional Road Safety Improvements $50 M
• South County US 101 Regional Safety Corridor Improvements, between Shell Beach and the Santa
Maria River, to address safety, mobility, and congestion issues based on latest adopted plan (i.e.
lanes, interchanges, crossings, ramps, bus, vanpool, parallel routes, etc.)
Mobility for All $17 M
• Public Transit for Seniors, Persons with Disabilities, and Veterans $8 M
• Active Transportation (Bicycle & Pedestrian)
°Bob Jones, Coastal, and South Anza Trails
°Promenades & Boardwalks
$9M
TOTAL $200 M*Dollar amounts shown in millions (M) reflect estimates from a half-cent sales tax generating $35M/year
for 20 years, unescaleted for inflation. Actual dollar amounts may fluctuate based on local retail sales and
inflation, but distributions are guaranteed as a relative percentage of total funds collected.
Page 55 of 116
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 1-31-24
$66 M
66%
$34 M
34%
NORTH COAST PROJECTS
$100 M
Local Projects - 66%$66 M
Morro Bay $21 M
• Road repairs, safety, and congestion improvements
°Pavement management program programs (i.e. Road Repair)
°Local Roadway Safety Plan implementation projects
°Embarcadero congestion improvements
°South Bay Blvd. climate adaptation roadway improvements
°Pedestrian Safety
°Bridges
°Public docks
°Tidelands park boat ramp
°Roadway striping
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
Cambria $10 M
• Road Repairs, Safety and Congestion Improvements to Burton, Ardath, Main, Windsor, Highway 1
Cayucos $4 M
• Road Repairs, Safety Improvements, and Downtown Improvements
Local Projects
Regional Projects
C
a
m
b
r
i
a
C
a
y
u
c
o
s
M
o
r
r
o
B
a
y
L
o
s
O
s
o
s
O
t
h
e
r
/
U
n
i
n
c
o
r
p
.
R
e
g
i
o
n
a
l
R
o
a
d
S
a
f
e
t
y
M
o
b
i
l
i
t
y
f
o
r
A
l
l
$25 M
$20 M
$15 M
$10 M
$5 M
Page 56 of 116
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 1-31-24
NORTH COAST PROJECTS
Los Osos
• Road Repairs, Safety Improvements, and Downtown Improvements identified in the Community
Plan, including 2nd Street revitalization and LOVR corridor multiuse path
$20 M
Other/Unincorporated $11 M
• Road Repairs and Safety Improvements for all North Coast Unincorporated areas $6 M
• Community Road Safety & Congestion Improvements
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$5 M
Regional Projects - 34%$34 M
Regional Road Safety Improvements $17 M
• Highway 1 Safety improvements (i.e., lanes, interchanges, crossings, ramps, bus, vanpool, parallel
routes, etc.)
• S. Bay Blvd. multimodal, capacity, and climate resiliency improvements
Mobility for All $17 M
• Public Transit for Seniors, Persons with Disabilities, and Veterans $8 M
• Active Transportation (Bicycle & Pedestrian)
°Coastal Trail
°Chorro Valley Trail
°Boardwalks
°Pedestrian/bicycle safety and operational improvements on Los Osos Valley Road between 9th
and Montana de Oro State Park
$9 M
TOTAL $100 M*Dollar amounts shown in millions (M) reflect estimates from a half-cent sales tax generating $35M/year
for 20 years, unescaleted for inflation. Actual dollar amounts may fluctuate based on local retail sales and
inflation, but distributions are guaranteed as a relative percentage of total funds collected.
Page 57 of 116
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 1-31-24
$102 M
66%
$52 M
34%
CENTRAL COUNTY PROJECTS
$154 M
Local Projects - 66%$102 M
San Luis Obispo $77 M
• Road Repairs to Los Osos Valley Road, Broad Street, Tank Farm $37 M
• Community Road Safety & Congestion Improvements
°East/West major roadway safety and mobility improvements (Tank Farm and South Street)
°Broad St. Safety Improvements (South St. to Buckley)
°Foothill Safety Improvements (Patricia to California)
°Intersection Safety Improvements (Foothill & Santa Rosa, California & Taft)
°Prado Road Improvements
°Local safety and intersection improvements
°Safe Routes to School (Laguna, CL Smith, Sinsheimer, and SLO High crossings)
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$40 M
Avila Beach $3 M
• Road Repairs and Safety Improvements
Local Projects
Regional Projects
A
v
i
l
a
B
e
a
c
h
S
a
n
L
u
i
s
O
b
i
s
p
o
O
t
h
e
r
/
U
n
i
n
c
o
r
p
.
R
e
g
i
o
n
a
l
R
o
a
d
S
a
f
e
t
y
M
o
b
i
l
i
t
y
fo
r
A
l
l
$80 M
$70 M
$60 M
$50 M
$40 M
$30 M
$20 M
$10 M
Page 58 of 116
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 1-31-24
CENTRAL COUNTY PROJECTS
Other/Unincorporated $22 M
• Road Repairs and Safety Improvements for all Central County Unincorporated area (Orcutt,
Foothill, Buckley)
$10 M
• Community Road Safety & Congestion Improvements
°Los Osos Valley Road (Laguna Middle School to Foothill)
°Highway 227
°Intersection improvements at Los Osos Valley Road & Foothill
°Safe Routes to School (San Luis Bay Drive and Los Ranchos)
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$12 M
Regional Projects - 34%$52 M
Regional Road Safety Improvements $30 M
• US 101 Regional Safety Corridor improvements, between Cuesta Grade and Avila Beach Dr. to
address safety, mobility, and congestion issues, based on the latest adopted plan (i.e. lanes,
interchanges, crossings, ramps, bus, vanpool, parallel routes, etc.)
• Highway 227 corridor safety and congestion improvements (between Tank Farm and Price Cyn)
Mobility for All $22 M
• Public Transportation, Senior Transportation, and Disabled Services $11 M
• Active Transportation (Bicycle & Pedestrian)
°Coastal Trail
°Chorro Valley Trail
°Bob Jones Trail
°Edna/Anza Trail
$11 M
TOTAL $154 M*Dollar amounts shown in millions (M) reflect estimates from a half-cent sales tax generating $35M/year
for 20 years, unescaleted for inflation. Actual dollar amounts may fluctuate based on local retail sales and
inflation, but distributions are guaranteed as a relative percentage of total funds collected.
Page 59 of 116
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 1-31-24
SAFEGUARDS IN THE PLAN
SAFEGUARDS
The Local Road Repair
& Transportation Safety
Investment Plan includes
strong taxpayer safeguards
to ensure that the projects
and programs approved by
the voters are funded and
delivered as promised.
Included in the plan:
• 20-year sunset date
• 1% administrative expense cap
• Independent Taxpayer Oversight Committee
• Annual independent audit and annual reporting
• Strategic implementation plan required to be
developed with local input groups
• No revenue generated shall be used to replace fair
share contribution from new development
• Requirements that funding be used to augment, and
not replace, local funds
All funding stays local and cannot be
stolen by Sacramento.
Page 60 of 116
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 1-31-24
SAFETY & RELIABILITY
Safety and reliability is critical to our transportation system’s function. The
Plan aims to reduce fatalities and serious injuries on our highways, streets,
and roads, while improving system reliability by focusing on operational
efficiency and resilency to environmental changes and natural disasters.
IMPROVED MOBILITY
Quality of life depends on our ability to access jobs, goods, and services.
The Plan will improve mobility by ensuring transportation to and from
places such as work, school, shopping centers and medical appointments
remains accessible & affordable for everyone living and working in the San
Luis Obispo County region.
TRAFFIC CONGESTION RELIEF
Traffic congestion increases travel times and has a harmful effect on air
quality. The Plan will improve travel times and preserve our air quality by
investing in transportation solutions that reduce traffic congestion across
our region.
GRANT LEVERAGE
Our region competes for grant funding with other California regions. Many
grants require applicants to provide local match money to win back State
and Federal funds through these grant programs. The Plan leverages
funding collected from this half-cent sales tax to return our fair-share of
State and Federal funds to the region. By securing funds locally through
The Plan, San Luis Obispo County and its cities qualify for an extra $900
million in competitive grants.
ECONOMIC VITALITY
Our region depends on goods movement, travel and tourism to support
our local economies. The Plan ensures our communities will continue to
prosper by securing funds for the transportation infrastructure that is
needed to balance economic growth and development.
BENEFITS OF THE PLAN
Page 61 of 116
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 1-31-24
ABOUT THE PLAN
Ensures local funding
collected stays in local
communities
Guarantees funding
cannot be re-allocated to
other projects and must
be spent on improving
transportation
Creates jobs that will
support the maintenance
and improvement of
transportation infrastructure
in San Luis Obispo County, its
cities and communities
Brings more Federal and
State tax dollars back to
San Luis Obispo County
through competitive grant
programs
The San Luis Obispo County region will need $5.4 billion in transportation infrastructure over the next 23 years, but
only expects $3.1 billion in available funds. With a $2.3 billion projected deficit, basic transportation projects such as
fixing potholes, improving road safety, and reducing traffic congestion cannot be implemented.
The Local Road Repair & Transportation Safety Investment Plan would add a half-percent sales tax to every dollar
spent within the region, generating $700 million over 20 years (unescalated for inflation). Funding would be
allocated to each subregion based on its population and be required to stay local, with a minimum of 99% going
to improve transportation infrastructure and safety. In addition, jobs would be created, public transit would be
improved, and tourists would pay for the roads they use.
LEARN MORE AT LOCALROADSFIRST.COM
Page 62 of 116
F-2-1
SAN LUIS OBISPO COUNCIL OF GOVERNMENTS
STAFF REPORT
MEETING DATE: FEBRUARY 7, 2024 ITEM F-2
SUBJECT
Staff Contact:
Supplemental Funding Update: Draft Investment Plan, Engagement
Results, and Next Steps
James Worthley
SUMMARY
Transportation funding for future infrastructure falls well short of the need. A dedicated, local
transportation sales tax is an invaluable tool that 25 California county transportation authorities use to
deliver timely, cost-efficient transportation improvements to their communities. Adding San Luis
Obispo County to the list of California’s self-help counties would help unlock hundreds of millions of
dollars in additional transportation funding, guaranteeing, and delivering much-needed transportation
improvements and repairs for our residents and to our communities.
A two-thirds vote is a challenging threshold. Successful Investment Plans contain funding distributions
and investments that are grounded in polling results, focus groups, and stakeholder input. The desired
result is an equitable distribution of investments with a wide-range of investments to address multiple
concerns. The member agencies must come together to identify a distribution of funds and
investments that is fair and understandable by the voters.
A San Luis Obispo regional, ½ cent sales tax for transportation would:
Generate $35M annually, escalating each year (or $700M over 20 years without escalations)
Reclaim $0.8M to $1M, annually, from State funds
Collect a $3M to $5M one-time windfall from State funds
Qualify the region to receive our fair-share of State and Federal funds
RECOMMENDATIONS
Staff: 1) Receive and Comment
2) Adopt Distribution Formulas
3) Direct Staff to Present Draft Investment Plan to Member Agencies and Seek Comments
and Feedback and Proceed with Development/Refinement of Draft Materials
4) Amend Consultant Contract to Extend the Polling Contract (No increased funding)
5) Direct Staff to Return on May 1 for SLOCOG Board Determination of Next Steps.
TTAC: Support Staff Recommendation.
CTAC: Support Staff Recommendation.
SSTAC: Support Staff Recommendation.
City Managers: Reviewed/Supported the Distribution Formulas
DISCUSSION
To have a reasonable chance of passage by 2/3rd of voters, a measure must focus on the projects and
improvements that voters identify as their priorities and be accompanied by robust community and
leader engagement, education, and communication to raise awareness of the region’s transportation
challenges and build community consensus around a proposal. Staff worked with its consultants,
gained input from community groups/organizations, responded to media inquiries and interviews, and
hosted a website with information and a survey to gain input from the public.
Benefits of a Dedicated Transportation Sales Tax
Transportation investments improve the region’s: safety, reliability, mobility, goods movement, and
economic vitality; and a sales tax is paid by all users of the transportation system, including tourists.
Regions (self-help counties) with more local funding have a competitive advantage: they are better able
to build and maintain infrastructure and services, recapture competitive funds (our paid taxes), and have
more flexibility to build partnerships and prepare for new technologies and future challenges.
Page 63 of 116
F-2-2
Our jurisdictions require new funds to repair our roadways, to deliver regional improvements, to
improve transportation overall, and to offer as a match in order to capture competitive State or Federal
funds. Higher funding leverages or ‘wins’ more funds from Sacramento. Without our own dedicated
transportation sales tax, we are effectively providing a ‘tax holiday’ to our tourists that come from the
25 counties with it.
Ability to Leverage
Comparing one investment category (Active Transportation), Santa Cruz recently ‘won’ $147m from
Sacramento using their 2016 sales tax measure funds. The Santa Cruz region has another $53m
remaining in measure funds to use as leverage for more Active Transportation grants. In comparison,
SLOCOG’s long range plan projects $184m for Active Transportation in our region between 2023 and
2045. Monterey will spend $600m from their 2016 measure funds on road maintenance and
improvements in the coming decades. This is on top of their local jurisdictions’ annual investments and
state or federal allotments, and they will use some of it to leverage or ‘win’ State and Federal funds,
outpacing our region.
With the failure of Measure J in 2016, the region lost out on over $180M in the last 6 years and this
could have easily doubled by capturing grants and competitive funds returned to the region. The
impact of a dedicated transportation sales tax for successful measure counties is evident. Those
counties deliver more projects and investments, faster, and at a lower cost.
Shrinking Fuel Tax
Reliant on the fuel tax, locally, we have a funding problem. Most of our jurisdictions have pavement
conditions that are too low which cost more to maintain at a low level than to maintain at a ‘very good’
level and do not have a path to reach it. Our primary artery, U.S. 101 has recurring congestion in South
County and emerging congestion in North County and we do not have the funding necessary to
address its existing or emerging congestion or safety issues.
The Insufficient Status Quo
The region’s current funding path relies not only on stable state and federal fund sources but also
aspires to win competitive state and federal transportation grants. Every two years, SLOCOG
programs its formula allotment of state and federal transportation funds. In January, the SLOCOG
Board approved the 2024 RTIP, a five-year capital investment program (FY 24/25 through FY 28/29).
The investment portfolio contains past and present funding secured and allotted by State and Federal
sources. SLOCOG received $33.9M (new funding) to program in the outer years. Half of this amount
was to address cost increases on six projects that were either “fully funded” in the 2020 fund cycle or
realized project-cost increases. In order to complete all 20 projects (only 7 are now fully funded),
$298M is still needed to close the shortfall This equates to 17+years based on status quo funding
($34M every two years) without State and/or federal grants or any additional project cost increases.
Projects are Cheaper Now than Tomorrow
Regions with a sales tax have a significant advantage over those without. When their new
improvements are ‘fully funded’ but run into unexpected project escalations or inflation, these regions
can use sales tax revenues to close the gap rather than losing the project (sometimes grant funded)
or delaying for several months or years to await additional funding (and incurring further cost
escalations). All regions are susceptible to State budget cuts (i.e., the 2024 proposed 50% cut to
REAP funding in the State) but measure counties are better equipped to backfill and deliver
improvements in spite of the state cuts.
We are Better Together
Setting aside our own self-interests can be challenging, but a regional approach helps to build the
infrastructure for today and the next generation. There is a holistic benefit of a regional measure. City
measures collect and spend only within their borders, yet, our residents travel beyond the singular
bubbles of each city, whether for commuting, shopping, or entertainment. We all do better when
everyone does better. An increase of transportation funding across the region provides benefits (safety,
access, mobility, cost-savings, etc.) to each individual, community, and jurisdiction. With both local needs
and regional needs, collaboration and coordination would be a key aspect if both a regional measure
and a local measure were on the same ballot.
Page 64 of 116
F-2-3
Draft Local Roads Repair & Transportation Safety Investment Plan: Attachment 1
The draft investment plan identifies how 20 years of collected, unescalated, revenues would be
allocated. Staff, working with its consultants and considering all feedback to date, developed a draft
(20-year, 1/2 cent sales tax) Investment Plan based on the following distribution premises.
1. Distribute all collected revenues by (4) subregions based on population. (i.e., 35% of the
population resides in the North County and 35% of the funds would be used in the North
County)
2. Within each subregion, distribute 66% of funds to its jurisdictions for Road Repairs &
Community Road Safety & Congestion Improvements based on relative population (with a
$3m increase to the four smallest cities).
a. Two Local Investment categories are: Road Repairs and Community Road Safety &
Congestion Improvements.
b. Respective investment levels are to be customized to the needs and priorities of each
city and community (pending City Council, staff, and public feedback.)
3. Within each subregion, distribute 34% of funds for Regional Road Safety & Congestion
Improvements and for Mobility for All.
a. Two Regional Investment categories are: Regional Road Safety Improvements and
Mobility for All (i.e., transit, senior services, and active transportation).
b. Regional Investment categories are to be customized to the needs of each subregion.
(pending additional feedback).
Staff reviewed various data metrics (including Population, Sales Taxes collected, Road miles, and
Employment by city and subregion) and various combinations with the City Managers in January 2024
and received concurrence for the previously described funding distribution methodology.
Key Questions for a Transportation Measure
1. Is there an unfunded need?
2. Is a dedicated transportation sales tax the best option?
3. Is it fair and understandable?
4. Does it improve your travel?
5. Is it protected?
6. Is it supportable?
1. Is there an unfunded need? Yes
Outreach and Engagement
SLOCOG staff engaged our community groups and organizations to give citizens the opportunity to
provide input to the needs of their communities. SLOCOG hosted four focus group meetings and
developed a website with a public survey. The message that ‘there are needs’ resounds at every level.
Engagement Meetings
Staff and SLOCOG’s Engagement Consultant were invited to present a 20-minute PowerPoint
discussion to 26 community groups and organizations over the past 6 months. In addition to these
presentations, staff, or the consultant, made a 3-minute comment at nine public meetings, engaged
with six media outlets garnering local press, and held four regional focus groups.
Focus Groups
In Fall 2023, four regional Focus Groups were held and facilitated by SLOCOG’s Consultant, MMKelly
Consulting. Staff used voter files to identify an ideal representation (political party, location, age (<25,
25-44, 45-65, 65+) and gender). Staff used a random selection tool to fill the categories until a
representative balance was achieved with confirmations of 12 members for each subregion’s focus
group. Each Focus Group was held and notes were drafted to include: General Views, Identified
Transportation Needs and Improvements, Funding Issues & Feedback, and Additional Insights. The
Consultant’s memo is Attachment 2.
Website
Staff developed and hosted its website, www.localroadsfirst.com and developed content to include
FAQs, meeting information, past projects completed by SLOCOG in each subregion, and developed
a simple online survey tool. Responses were collected (through November) and the following figures
show results, by subregion, of which investment type garnered the highest support. Investment types
Page 65 of 116
F-2-4
were ranked 1-10 and included: Improve Highways and
Interchanges; Improve Local Road Intersections; Repair Roads,
Potholes and Bridges; Build More Safe Routes to School and
Pedestrian Improvements; Extend Bike Lanes or Trails; Expand
Buses or Senior Transportation Options; and Safety Improvements. Additionally, an open-ended
question offered respondents to share what transportation improvements are needed (included as
Attachment 3). Results of this survey were shared and discussed with consultants.
Pavement Conditions Index (PCI)
A few jurisdictions are doing well, or making strides,
but most are not keeping up. A few examples are:
• Morro Bay’s PCI dropped 15 points in 2023.
• Atascadero’s 2022 Road Report identified its
PCI reached 49 (2 points higher than 2015)
with 25% of all roads rated as ‘Failed’ (16%
failed in 2015)
• For the San Luis Obispo County
unincorporated areas, the PCI was:
o 63 in 2013
o 64 in 2017
o 60 in 2020
o 60 in 2022
Fuel Taxes
Existing State and Federal funding are based
upon an antiquated system of cents per gallon of
fuel. The system predated the proliferation of
mileage improvements, hybrids, ethanol fuels,
and electric vehicles. The Federal gas tax has
had no adjustment in over 30 years. Further, 20%
of all new cars sold in CA in 2022 were electric
and this market share will grow. Fuel taxes have
not kept up and will only diminish over time. A
local solution is required to address our current
and future local problems to protect our quality of
life.
North County Survey Results
South County Survey Results
North Coast Survey Results
Central County Survey Results
Page 66 of 116
F-2-5
Volumes on US 101
U.S. 101 is our major artery, connecting six of our cities, and many unincorporated communities. Twice
in 25 years, SLOCOG has been fortunate to leverage State grants for its improvement. In the late
1990s a grant award funded Cuesta Grade to be widened and improved with truck climbing lanes with
construction completed in 2003. Two decades later, a new State grant was awarded to improve U.S.
101 in a four-mile section (southbound only) in the Shell Beach area. The Shell Beach Straits has long
been the most regularly congested and problematic section. However, over the past decade, volumes
on U.S. 101 have been growing in the North County with peak hour numbers higher than that in Shell
Beach. (See Figures below). In several sections, 2021 Peak Hour volumes match and surpass those
of 2019; 2022 volumes are not yet available.
5900 - 6400
9000 - 10200
Page 67 of 116
F-2-6
2. Is a dedicated transportation sales tax the best option? Yes.
The 2023 RTP examined potential funding sources specific for transportation, including – Fuel Tax,
Vehicle Fees, Impact Fees or VMT fees, Bonds, and others. For a single improvement, bonds (repaid
through income tax, local sales tax, local property tax, or other levied taxes) may offer a solution.
Bonds significantly impact those that currently (or in the future) reside near the improvement, but it
benefits everyone that uses it. A broader funding source is needed, that will not diminish over time
(fuel tax) and that is paid for by all those that benefit, including tourists. The unfunded needs are across
the region; the benefits of improvements would benefit all users and residents.
While the cents per gallon of fuel tax (for the State but not the nation) is indexed to inflation, EVs will
erode the total gallons purchased affecting the total tax collected. In tourist-attracting regions, sales
tax outperforms inflation. The
adjacent chart shows the
effects of inflation (orange
line) on our region’s sales tax
(of what a ½ cent raises)
originating in FY 09/10. The
blue line follows the actual
amount raised from a ½ cent
sales tax. From 2010 to 2020,
the region grew in population
by less than 5%; inflation
grew by 32%; sales taxes
nearly doubled.
Monterey county (region)
voters approved their sales
tax in 2016 and began
spending an additional $13M
annually (and growing) on
road repairs – above their
local, state, and federal allotments. Santa Cruz County (region) voters also approved their
transportation sales tax in 2016 and have successfully used it to leverage over $100M in 2022 from a
single State competitive pot. Our region is at a disadvantage to compete and capture State and
Federal grant funds without our own dedicated sales tax.
The 25 counties with their transportation sales tax annually receive a direct allocation from statewide
gas taxes. Annually, we lose out on this to a tune of $0.8M to $1M and cannot capture these funds.
Essentially, the State competitive system is rigged to reward those with a dedicated transportation tax,
and those regions without will continue to lose out and leave dollars on the table. Additionally, new
transportation-specific voter-approved measures receive a one-time share of a $20M set aside from
the State, up to $5M.
3. Is it Fair and Understandable? Yes.
The draft Investment Plan uses population percentages to distribute funds to each subregion –
guaranteeing each a fair-share amount. One complaint heard and lesson learned from Measure J in
2016 was the need to be clearly fair in the distribution of revenues and to make the distribution easily
understandable. Additionally, staff recognizes that ‘one size does not fit all’ and this is reflected within
the draft investment plan where subregions differ in investment areas of focus.
Our economy and quality of life are dependent on not only a good transportation system but one that
offers our residents and tourists options of travel. The transportation system benefits everyone:
residents, commuters, shoppers, recreationalists, drivers, bus riders, cyclists, pedestrians, and
tourists. State and federal transportation funding comes from a gas tax which is no longer a fair funding
mechanism. EV owners pay no gas tax; the fee they pay for roads is far lower than an average
vehicle’s gas tax and is regardless of total miles traveled. Hybrid owners pay roughly half of their
gasoline equivalents. All non-drivers benefit without paying a fuel tax. Tourists with gasoline and hybrid
vehicles pay a gas tax, however, revenues that are generated by the fuel tax are deposited to the
Page 68 of 116
F-2-7
State’s Highway and Users Tax Account (HUTA) and its distribution of formula funds are largely based
on population – which means our region receives the same proportion of fuel taxes whether we have
1,000 tourists or one million. 100% of a dedicated-transportation sales tax stays local for the
betterment of our system and be paid by all users of the transportation system, including tourists.
4. Does it improve your travel? Yes.
The draft investment plan guarantees a wide-range of investments for:
• Rural areas and urban areas
• Personal vehicle drivers, and cyclists, and bus riders
• School aged children and senior mobility needs
• Road repairs and betterments
• Local roads and highways
• Safety and congestion relief
• Economic progress, accessibility, and mobility improvements.
Through polling, surveys, engagement meetings, and focus groups the list of needs is long. The
investment plan includes many, but it cannot include all requests without sacrificing investments in
another mode, community, or category.
New funds through a dedicated sales tax would become an added piece of the larger funding picture.
Similar to other COGs, SLOCOG receives and invests over 20 state or federal revenue sources for
transportation. New funding grows the pie for all things transportation in all areas of the region.
5. Is it protected? Yes.
As a ‘Special Tax’ a dedicated sales tax differs from a ‘General Tax’. A special tax guarantees
transportation investments where voters want, need, and expect them; effectively taking away any bait
and switch actions or reprioritization by any future board or council. General taxes go into the local
general fund, can go for any purpose for a city or county, and are determined annually by the (then)
current elected officials. Voters must trust that general funds will be spent as they hoped, but every
two years an election may replace three-fifths of the governing body.
Special taxes – like a dedicated transportation tax – go solely to improve transportation and the voter
measure contains an Investment Plan that details exactly what and where the funds will go, and these
funds do not go into a general fund. Our draft Investment Plan is attached and if sent to and approved
by voters, distributions and expenditures would strictly adhere to it. Current and future elected officials,
and staff, must follow it for all expenditures and distributions.
On an annual basis, the 25 counties (our population is greater than 6 of these counties) -which
comprise 89% of the State’s population- have dedicated transportation sales taxes that collectively
raise more than the gas tax statewide. The San Luis Obispo region has less than 1% of the State’s
population; imposing or expecting change to transportation funding in Sacramento is pointless.
Our local funds would be required to be spent within our region – they cannot be borrowed, redirected,
or stolen by Sacramento. Some counties have had their dedicated transportation sales tax for decades
and voters have renewed these taxes (like in Santa Barbara) after realizing the benefits and
recognizing the promises made were kept, and the funds cannot be stolen.
A voter measure would include safeguards, including an independent citizens’ oversight committee,
a sunset date, annual independent audits and reporting, a 1% administrative cap, and requirements
for a local maintenance of effort and for new development. Safeguards would be drafted for review
and input at the May SLOCOG Board.
6. Is it supportable? By the SLOCOG Board, City Councils, Supervisors, and Voters (TBD)
At this point, the draft investment plan is ready for review, for comments, and for modifications. Staff
anticipates changes to occur to this draft investment plan over the coming months to improve it.
In 2016, Measure J received 66.3% support of voters. Transportation conditions and needs have not
improved notably and transportation funding faces its latest challenge of a growing share of EVs.
Page 69 of 116
F-2-8
Any future SLOCOG Measure would allow voters the final say on such a new tax; would increase their
voice; would require the necessitated 2/3rd approval; would include accountability and transparency
with no bait and switch; would have a sunset date; would have safeguards and be protected from
Sacramento; and would dedicate its funds to improve our transportation system only.
Additional Requirements and Restrictions
If February Board direction is to proceed with the development of draft materials, all components
(Ordinance, Safeguards, and Investment Plan) must be developed in time for the May 1st SLOCOG
Board meeting. The draft sections of an ordinance will include:
1. Draft Title: An ordinance providing for the imposition of a one-half of one percent retails
transactions and use tax by the San Luis Obispo County Local Transportation Authority for the
San Luis Obispo County and Cities Road Repair, Traffic Relief, and Transportation Safety.
2. Draft Compliance with CEQA: All projects funded with these transportation sales tax funds
will be required to complete appropriate California Environmental Quality Act (CEQA) and
other environmental review as required.
3. Draft Ballot Label: Draft 75-word ballot labels shall be further tested in upcoming polling:
The proposition to be placed may read as follows:
In order to repair and maintain local streets, highways, bridges, and infrastructure; fix
potholes; improve highway and roadway safety; provide safe routes to schools; reduce
traffic congestion; make pedestrian, bike, and transit improvements; and qualify for
900 million dollars in State and Federal grant funds; shall San Luis Obispo County’s
measure establishing a half cent sales tax for transportation improvements be
adopted, providing approximately 35 million dollars annually for 20 years that cannot
be taken by the State, with citizen oversight and all money locally-controlled?
4. Draft Investment Plan Amendments
a. To address changing population: In FY2032/33, amend local distribution categories
based on new population as determined by the 2030 Census. This would amend the four
subregions’ respective shares relative to each other and, within each subregion, the
respective shares of jurisdictions while maintaining the $3m increase to the 4 smallest
cities.
b. To address new or changed laws, requirements, technologies, or needed investments:
Amendments to the Plan would require a high threshold. No changes to the 66%:34%
(local:regional split) would be accepted. No changes to the relative share of the four
subregions or shares within each subregion (jurisdictional splits) with the exception of
the 2030 Census noted above. Any changes within the Local Investment category would
be allowed if supported by 2/3rd of the Independent Taxpayer Oversight Committee, a
2/3 approval by the Authority, AND majority-vote approvals from a majority of the city
councils constituting a majority of the incorporated population, AND majority vote of the
Board of Supervisors. Any changes within the Regional Investment category – while
maintaining the promised share of funds within each subregion -- would be allowed if
supported by 2/3rd of the Independent Taxpayer Oversight Committee, and a 2/3
approval by the Authority by a roll call vote, with prior notice (30-day) provided to all
jurisdictions.
5. Draft Cooperative Fund Agreements: To maximize the effective use of funds, revenues may
be transferred or exchanged between or among jurisdictions. Jurisdictions receiving funds
may, by annual or multi-year agreement, exchange funds provided that the percentage of
funds allocated as provided in the Investment Plan is maintained over the duration of the period
of time the tax is imposed.
Page 70 of 116
F-2-9
6. Support for Local Job Creation and Contracts
7. Eligible Uses of Categories: Investment categories are still undergoing refinement, but staff
recommends that the following be applied:
Local Investments
Road Repairs:
• Potholes, repaving, repair, and maintenance,
• Maintaining, improving, or constructing streets, roads, bridges, and bicycle and
pedestrian facilities (including maintenance of public docks),
• Safety Improvements,
• Storm damage repair to transportation facilities,
• Roadway drainage facilities,
• Traffic signal coordination, intersection and channelization,
• Traffic management,
• Landscaping Maintenance,
• And other transportation purposes as allowable under the Surface Transportation
Program.
Community Road Safety & Congestion Improvements:
• Community Enhancements, such as downtown streetscapes, transportation
enhancements, way finding, and accessibility improvements, street lighting, street
furniture and trees
• Safety Improvements,
• Bus and rail transit services and support facilities,
• Programs that reduce transportation demand,
• Reduced transit fares for seniors, veterans, students, and persons with disabilities,
• Education and incentives designed to reduce single occupant auto trips,
• Downtown streetscapes and transportation enhancements, multiuse paths, sidewalks,
Safe Routes to School, and ADA improvements.
• And other transportation purposes as allowable under the Surface Transportation
Program.
Regional Investments
Regional Road Safety Improvements ($ and % varies by subregional needs)
• Highways and Major Roadway improvements for: safety, congestion-relief, and
mobility improvements. (i.e., US 101 Northbound offramp to Highway 46E)
Mobility for All ($ and % varies by subregional needs)
• Public Transit investments (Seniors, Persons with Disabilities, Veterans, Fixed Route,
etc.)
• Active Transportation (Bicycle and Pedestrian improvements on regional trail
corridors, Boardwalks, Promenades, etc.)
Budget and Next Steps
Budget
The effort remains within the scope of the adopted FY 23/24 budget.
Polling
A new statistically valid poll (phone, cell, text, internet) is funded to occur in March with results to
follow. True North Research will perform a full-size tracking poll, expecting over 900 responses using
a statistically valid methodology. This poll will test success of recent public engagement efforts and
public concern about transportation and awareness of needs; test support for transportation-related
issues and quality of life investments; test support for a new tax, and related issues, such as taxpayer
safeguards; and assess support for overall goals of a local sales tax plan. Staff, working with city
managers, aim to add a question that also tests compatibility of regional and local measures. Top lines
Page 71 of 116
F-2-10
will be produced and presented to the SLOCOG Board and a final report prepared. A contract
amendment (attached) is necessary to extend the existing contract.
Engagement and Outreach
Staff will continue engagement with interested groups and organizations with the draft Investment
Plan. (February – April). All engagement efforts will remain within the current budget.
Revised Investment Plan
Following meetings in February – April, and coupled with new polling results, staff will make necessary
revisions to the draft Investment Plan and present changes to the SLOCOG Board on May 1st for the
determination of the next step. Staff will also present draft ordinance language for review and
comment.
Public Meetings: Review and Comment
March 11 City Council Meeting –Grover Beach
March 12 City Council Meeting –Arroyo Grande
March 19 City Council Meeting –San Luis Obispo
April 9 City Council Meeting –Atascadero
TBD City Council Meeting –Morro Bay
TBD City Council Meeting –Paso Robles
TBD City Council Meeting –Pismo Beach
April 9 Board of Supervisors Meeting
May 1 SLOCOG Board Meeting – Approve/Deny Investment Plan; Review Polling results
ATTACHMENTS
1. Draft Local Road Repair & Transportation Safety Investment Plan
2. Focus Group Summary Memo from MMK Consulting
3. Survey Responses: Open Ended (North County, North Coast, Central County, South County)
4. Contract Amendment #2 with True North Research
Page 72 of 116
Item 7a: SLOCOG Presentation on Countywide Self-Help Measure & Transportation Investment Plan
Recommendation
Receive and comment on a report and presentation by the
San Luis Obispo Council of Government (SLOCOG)staff
regarding a potential Countywide Self-Help Sales Tax
Measure and Draft Transportation Investment Plan.
Alternatives
The Council may choose not to provide feedback regarding a potential sales tax measure or the Draft Countywide Transportation Investment Program at this time. SLOCOG staff will be returning to the SLOCOG Board in early May on May 1, 2024, to share feedback received through stakeholder outreach and to receive direction on next steps, which could include refinements to the proposed measure and Investment Plan and direction on whether or not to continue advancing this proposal to the November ballot.If this measure continues forward, the City Council would have another opportunity for questions and feedback later this spring; however, if the Council chooses not to provide feedback at this March 5th session, there would be less time for SLOCOG staff and Board to consider the City’s feedback and less opportunity to ensure that the City’s interests and priorities are properly reflected in the final ballot measure and Transportation Investment Plan details If this measure continues forward, there will not be another opportunity for changes to the draft investment plan after the May 1, 2024 SLOCOG Board meeting; the San Luis Obispo City Council’s March 5, 2024, meeting provides the best opportunity to provide feedback to ensure that the City’s interests and priorities are properly reflected in the final Transportation Investment Plan.
If the City of San Luis Obispo and/or other jurisdictions do not support the proposed salestaxmeasureorTransportationInvestmentPlan,this could result in the SLOCOG BoardorCountyBoardofSupervisorsdecidingnottoplacetheself-help transportation salestaxmeasureontheNovember2024ballot.The current Regional Transportation Plan isunderfundedby$2.3 billion based on current revenues;thus,many planned local andregionaltransportationmaintenanceandimprovementprojectswillnotbefeasiblewithoutsomeformofaugmentedfundingcapacity.
Local Roads First:
A Roadmap to
Transportation
Independence
Presentation on the Draft
Transportation Investment
Plan
Summer 2023
March & April 2024
4
Introduction to SLOCOG
Connecting Communities(7 cities & SLO County)
Founded
in 1968
San Luis Obispo County & 7 Cities
Arroyo Grande
Atascadero
Grover Beach
Morro Bay
Paso Robles
Pismo Beach
San Luis Obispo
+40,000 new people
23-Year Outlook Unfunded Need
Highways, Interchanges -$687M
Major Roads, Downtowns -$372M
Local Road Maintenance -$400M
Public Transit/Senior Mobility -$100M
Bikes, Peds, Safe Routes to School -$714M
6
The why: A Shrinking Fuel Tax
1970s, ‘80s, ’90s:
More cars & travel
meant more Revenues
2001-2024+
Conservation + Hybrids +
EVs means flat Revenues
2035 and beyond
No new gas/diesel cars
to be sold in CA
2023: EVs were 25%
of all new car sales
Fallacies, Misperceptions, and Unicorns
Gas Tax will repair our roads
- No
Gas Tax went up, it will fix all our roads
- No
The State will reprioritize its funds to our roads
- Nope
Local funding will be reprioritized to roads
- Maybe/maybe not
Caltrans will fund 101 improvement
- two major improvements in 25 years
EV owners pay an average amount for road repairs
- Not even close
The State will change…..’something’.....that will fix everything
- No chance
Local Road Maintenance Issues Persist
20
2
2
P
a
v
e
m
e
n
t
C
o
n
d
i
t
i
o
n
I
n
d
e
x
100
90
80
70
60
50
40
30
20
10
SLO: 70
Pismo Beach: 67
Morro Bay: 63…
County: 60
Paso Robles: 57
Arroyo Grande: 56
Grover Beach: 52
Atascadero: 49
Morro Bay: dropped 15 points
from 63 to 48 in 2023.
Atascadero: 47 to 49 over 8 years,
but ‘Failed’ (25 or less) increased
from 16% to 25% (2023) now 22%
County roads were:
63 in 2013
64 in 2017
60 in 2020
60 in 2022
9
Highway Congestion
Atascadero: North of San AnselmoShell Beach: South of Avila Beach Rd
S.Co Peak Hour:
6,400 cars
N.Co Peak Hour:
10,000 cars
Neighboring County Comparison
•Currently, 25 Counties (89% of
Californians) HAVE a Special
Transportation Tax
•San Benito – 2018 – 30 years
•Monterey – 2016 – 30 years
•Santa Cruz – 2016 – 30 years
•Santa Barbara - 2008 – 30 years
•San Luis Obispo –Lost out on
~$30m/yr over 7 years
11
What is the Cost?
For the San Luis Obispo Region, a ½ cent sales tax would:
Raise $35m / year
Be used to Leverage ~$1 billion out of Sacramento
Be protected from Sacramento (cannot be stolen)
Speed up project delivery (reducing cost)
Guarantee every penny for our local TRANSPORTATION priorities (no bait
and switch)
Contain Safeguards (accountability, oversight, audits, reporting, a sunset
date, and 1% maximum for SLOCOG administration)
Provide that tourists pay a tax guaranteed for our roads (finally!)
12
Draft Local Road Repair & Transportation Safety Investment Plan
13
Draft Local Road Repair & Transportation Safety Investment Plan
Fair and Understandable
Local Distribution Formula:
•4 Subregion Population %
•66% to Local Direction
•%City
•%City
•%Unincorporated
($3M added to 4 smallest cities
from uninc. subregional share)
14
Draft Investment Plan: NORTH COUNTY
15
Draft Investment Plan: SOUTH COUNTY
16
Draft Investment Plan: NORTH COAST
17
Draft Investment Plan: CENTRAL COUNTY
18
Local Area Investments - Draft
Key Regional Projects:
Regional Road Safety Improvements $30 M
US 101 Regional Safety Corridor improvements, between
Cuesta Grade and Avila Beach Dr. to address safety, mobility,
and congestion issues, based on the latest adopted plan
Highway 227 corridor safety and congestion improvements
(between Tank Farm and Price Cyn)
Mobility for All $22 M
Public Transportation, Senior Transportation, and Disabled
Services $11 M
Active Transportation (Bicycle & Pedestrian)$11 M
Coastal Trail, Chorro Valley Trail, Bob Jones Trail, Edna/Anza Trail
19
Draft Investment Plan: CENTRAL COUNTY
Feb 7: SLOCOG Board Direction to Present Draft to Member Agencies, Seek Feedback, Continue Engagement Efforts, Develop Polling
March: Polling by phone/text/email
March/April: Draft TIP review/comment by all jurisdictions
3-5: San Luis Obispo
3-11: Grover Beach
3-12: Arroyo Grande
3-19: Pismo Beach & Paso Robles
4-9: Atascadero & County Supervisors
?-?: Morro Bay
May 1: SLOCOG Approve/Deny Final TIP
May: All Jurisdictions Approve/Deny Final TIP
May 29: SLOCOG Determines Direction
November 2024 Election
Fail => No change
Pass => Delivers Investment Plan
Other Future Election
20
Steps and Timing
Learn more at: www.localroadsfirst.com