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HomeMy WebLinkAbout10/18/1994, C-2 - CITY COUNCIL ENDORSEMENT OF PROPOSITION 185: CALIFORNIA CLEAN AIR, JOBS AND TRANSPORTATION EFFICIENCY ACT (CALTEA) MEETING DATE city of SAAAIS OBISPO COUNCIL AGENDA REPORT NUMB6i: /ZJ FROM: Michael McCluskey, Public Works Director ' Terry Sanville, Principal Transportation Planner SUBJECT: City Council endorsement of Proposition 185: California Clean Air, Jobs and Transportation Efficiency Act (Caltea) CAO RECOMMENDATION: Adopt a resolution endorsing Proposition 185 and direct the City Clerk to distribute copies to Caltea sponsors and state legislatures representing the San Luis Obispo Area. L DISCUSSION A. Background: Proposition 185, sponsored by the California Planning and Conservation League, will be considered by the California electorate on the November 4, 1994 ballot. If passed, it will provide increased funding to San Luis Obispo County for a variety of transportation projects and programs including: Transit operations Environmental improvements Transit capital Traffic signal synchronization Intercity rail service Electric and clean vehicles Grade separations Carpooling Bicycle and pedestrian The additional funding would be generated by a four percent (4%) increase in the sales tax on motor vehicle fuel sales, with 1995 state-wide revenues estimated at $600 million. Furthermore, Proposition 185 would also protect funding from existing State sources from being diverted to other uses or eliminated. B. Evaluation: Attached is a brief report prepared by SLOCOG staff that presents the benefits and disadvantages of Proposition 185. H. CONCURRENCES On August 3, 1994, the San Luis Obispo Council of Governments endorsed Proposition 185. III. FISCAL IMPACTS Proposition 185 will provide additional funding for the types of alternate transportation programs identified in draft Circulation Element currently being considered by the City Council. Approval of Proposition 185 would assist with the implementation of the draft Circulation Element. IV. ATTACE[ ENTS Draft City Council Resolution Endorsing Proposition 185 (Caltea) SLOCOG Staff Analysis Support Materials 6.2 RESOLUTION NO. (1994 Series) A RESOLUTION OF THE SAN LUIS OBISPO CITY COUNCIL ENDORSING THE PASSAGE OF PROPOSITION 185: CALIFORNIA CLEAN AIR, JOBS and TRANSPORTATION EFFICIENCY ACT (Caltea) . BY THE ELECTORATE ON NOVEMBER 4, 1994 WHEREAS, the Planning and Conservation League has sponsored Proposition 185 (Caltea) to be considered by California voters on November 4, 1994; and WHEREAS, Proposition 185 will provide additional funding for a wide array of beneficial transportation projects and programs and protects existing State transportation funding from being diverted to other uses; and WHEREAS, the City of San Luis Obispo has long supported transportation programs that reduce its citizen's dependance on private vehicles and foster the use of alternative forms of transportation; and WHEREAS, the City is in the process of adopting a new General Plan Circulation Element that identifies the types of programs specifically targeted for funding by Proposition 185; and WHEREAS, passage of Proposition 185 will assist the City in meeting its transportation goals and implementing its Circulation Element by providing needed fiscal support. NOW, THEREFORE, BE IT RESOLVED, the City.Council of the City of San Luis Obispo endorses the passage of Proposition 185: California Clean Air, Jobs and Transportation Efficiency Act (Caltea) by the California electorate on November 4, 1994. Upon motion of , seconded by, and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of 1994. Mayor Peg Pinard ATTEST: APPROVED: City Clerk Diane R. Gladwell Ao oe G-1wp51%prop185 SAN LUIS OBISPO COUNCIL OF GOVERNMENTS STAFF REPORT I..... .DATE- AUGUST 3k.:.1994 x } e } S17BJECT PROPOSED CAfJFORNIA CLEAN AIA, JOBS AND, ` �` ywY�•�uy,:��"�`�TRAIV5POF3't.A'T�bN fFFJC�E Y AC ,y> $•_:.�>t,,..;..y �' i�l GL,iO7 At�.OT MSASi1RE~` tt� rµ k vxm y SUMMARY This staff report summarizes the major components of the proposed CALTEA initiative, and compares its benefits to the San Luis Obispo region with the negative factors identified by California Transportation Commission (CTC) staff. In the opinion of Council staff, the initiative should be supported because its advantages are more significant than the drawbacks asserted by CTC staff. Attached with this staff report are several pages of information provided by the Planning and Conservation League (PCL) identifying its major benefits to the San Luis Obispo region. RECOMMENDATION Staff: Endorse Initiative. TTAC: No-action taken as initiative is a political, not technical, issue. CTAC: Consensus to support staff recommendation. DISCUSSION Description of Initiative-The CALTEA initiative calls for the imposition of an additional 4 percent sales tax on motor vehicle fuel sales to fund a variety of public transportation related programs, including capital projects, operations and services. The PCL has estimated that this proposed sales tax increase will produce an additional $600 million in its first year (1995) if approved, and $700 million in 1996 and thereafter. It would then permit issuance of revenue bonds for capital projects funded by this new revenue. All new funds would be programmed and allocated by the California Transportation Commission (CTC), which would allocate funds to Caltrans and local public transportation agencies. No private companies would receive funds directly as a result of the initiative. Of the total funding from the increased sales tax on motor vehicle fuel, 47.5 percent would be required to be spent on capital projects. This amount would increase to 57 percent the year 2000 and 59 percent in 2010. Capital expenditures include new light rail systems, commuter rail, intercity rail, electrified bus systems, the purchase of clean buses, and repair of bridges for earthquake safety. In addition, funding is provided for transit system operations serving the elderly, disabled and others. C-1-1 z- Project Priorities- First priority for capital projects is given to projects of statewide significance totaling $1.35 billion. Most significant of these expenditures to the SLO region is $500 million allocated for the purchase and improvement of the San Francisco to Los Angeles Coast Rail Route, and the purchase of rolling stock for new passenger rail service in the San Francisco Bay Area-Monterey-San Luis Obispo-Santa Barbara-Los Angeles corridor. This new service would be administered by a new Joint Powers Board made up of representatives from transportation agencies of each of the eight counties along the route. The measure also provides for state support for operating costs of the new service. In addition to the above noted capital funding, the initiative provides approximately $1.2 million annually to the San Luis Obispo region in new funding for transit operating costs under very specific but workable criteria. Another$1.8 million annually would be provided for transit capital expenditures. Perhaps most important, beside providing a significant amount of new funding for transit and passenger rail capital and operational expenses, the CALTEA initiative permanently protects all transportation funds, including existing Transportation Development Act (TDA) funds, so they cannot be taken for some other use in the future. The initiative protects these funding sources by making them trust funds, as in the case of Proposition 116 funds. This guarantee will protect funding sources and levels for transit and rail projects that have become very important to the San Luis Obispo region, including the Transportation Planning & Development Account (TP&D); State Transit Assistance (STA); and the Transit Capital Improvement (TCI) program. In addition, the State Highway Account (SHA) would also be made a trust fund, thus protecting it from diversion for other purposes. The initiative also establishes competitive funding sources for a number of programs of interest to the San Luis Obispo region, including: $14 million a year for grade separations; $14 million for bicycle and pedestrian projects; $14 million a year for environmental improvements; $14 million a year for traffic signal synchronization; and $14 million a year for purchase of electric and clean vehicles. Benefits vs Disadvantages - A number of issues and concerns with the proposed CALTEA initiative have been asserted by the California Transportation Commission (CTC) in support of their opposing position. Following are brief descriptions of the major concerns identified by CTC staff together with the position of SLOCOG staff. 1. The initiative establishes a complex framework or priorities outside the State Transportation Improvement Program (STIP) - While this may be true, the existing STIP process continues a very heavy bias towards highway projects. SLOCOG staff see this initiative as a means of accomplishing high priority, non-highway, projects for the San Luis Obispo region (rail, transit, bikes, et al). 2. Unlike a bill moving through the legislature, the initiative is not subject to amendment or revision, and it is a take or leave it situation-Agreed. Such is the case with any citizen initiative. However, the initiative went through an extensive process of development revision, involving individuals, transportation planning agencies and other organizations, to address issues of concern. While it did not go through the normal legislative process, SLOCOG submitted comments on four drafts and most of the most objectional issues have been addressed. C-1-2 61-� 3. It micromanages the transportation policy development, planning, programming, fund allocating process at the state, regional and local government levels - Experience has shown that it is sometimes necessary for such an initiative to be proposed to accomplish goals that have not been recognized by the legislature or other existing decision making bodies. This is largely the case for rail and other alternative transportation funding in California. The initiative places a priority for funding alternative transportation projects. While it does fund "favored° local projects, the SLO region could receive a 'fair-share" allocation. 4. Preempts examination of planning, financing, and route options for proposed High Speed rail services by the High Speed Rail Commission - The High Speed Rail Commission has not integrated recommendations to upgrade conventional services; rather, it has focused its efforts on high tech, high-speed (125 MPH) service that is cost prohibitive and rikely unachievable. In light of this fact, the CALTEA initiative is an entirely appropriate means of accomplishing the high regional priority goal of upgrading the coast route for frequent and faster (up to 110 MPH) passenger rail service. Attached is a three page summary of SLO regional impacts, prepared by the initiative authors, the Planning and Conservation League. The full text of the bill and a ten page PCL explanatory document are both available at the SLOCOG office. TTAC and CTAC reviewed the ten page document, which describes the Statewide components of the Initiative. In conclusion, in the opinion of Council staff, this proposed measure on balance will benefit the San Luis Obispo region by protecting limited transportation funds, increasing funding for alternative muni-modal and intermodal transportation projects (as proposed in the Regional Transportation Plan) and by earmarking$500 million for the purchase and upgrade of the Pacific Coast Rail Corridor for faster and more frequent passenger rail service. Therefore, staff have recommended that the Council endorse the CALTEA initiative. Staff report prepared by Harmon/Herron/DeCarli. \cahea.dan C-1-3 602 r bv =41`1 CLEAN Alfa, J055; and TRANSIT INITIATIVE (CALTEA) SAN LUIS OBISPO COUNTY BENEFITS CALIFORNIA CLEAN AIR, JOBS AND TRANSPORTATION EFFICIENCY ACT (CALTEA) INITIATIVE The California Clean Air,Jobs and Transportation Efficiency Act of 1994 (CALTEA) would impose a 4 percent statewide sales tax on gasoline to provide approximately $700 million to $725 million a year for public transportation. PROVIDES SAN LUIS OBISPO COUNTY WITH NEW FUNDING FOR LOCAL TRANSIT OPERATIONS The San Luis Obispo Council of Governments would receive new funding for transit operating costs for San Luis Obispo transit providers, based on existing state transportation funding formulas (PUC 99393(b)). San Luis Obispo County's share would be approximately$1.2 million ger year. This is five times more than San Luis Obispo County transit operators received in State Transit Assistance (STA) funds in 1992-93.' CALTEA would also earmark the revenue generated from the state sales tax on the recent 43 cent federal gas tax increase for transit operating and capital expenses (i.e. the Transportation Planning and Development (TP&D) Account). State sales tax revenue on any future federal gas tax increase would likewise be reserved for the TP&D Account. This provision would immediately increase state transit funding by $25 million per year, and increase it further whenever the federal gas tax is increased. San Luis Obispo would receive its proportionate share of these funds. PROVIDES SAN LUIS OBISPO COUNTY WITH NEW FUNDING FOR TRANSIT CAPITAL INVESTMENT Provides critically needed new funding for capital expenditures (PUC 99391(c)(2)). Funds are provided to the San Luis Council of Governments based on population (PUC 99391(c)(2)). San Luis Obispo's share of the new capital funding would be approximately$1.86 million per year. This is nearly four times more than the amount of Transit Capital Improvement (TCI) funds to which the San Luis Obispo region was entitled in 1993-94."' The to priority for theses funds is electrification projects and urban, commuter and intercity rail projects (PUC 99391(c)(2)). Second priority is for acquisition of clean fuel buses and rail rolling stock, and electric buses and urban rail transit vehicles Other eligible expenses include fog related safety improvements, bike and pedestrian projects, traffic signal synchronization, ridesharing programs, environmental improvements to mitigate transportation impacts, grade separations, and even transit operations (PUC 99391(c)(2)). PROVIDES FUNDING FOR COAST ROUTE INTERCITY RAIL PASSENGER SERVICE The highest priority for capital funds generated by CALTEA is for a limited number of statewide projects, including new"fast train service along the Coast Route. CALTEA earmarks $500 million for the right-of-way acquisition, track Californians for Transportation Solutions ID#890312 aproject of the Planning and Conservation.League 926 J 5treet,5uite 612 5acramento,CA 95514 N (CHAT A A A A77u cnv(OA/--NN tin a_+-MO I I • 4 r and capital improvements, and purchase of rolling stock for the San Francisco Bay Area-Monterey-San Luis Obispo- Santa Barbara-Los Angeles Coast Route (PUC 99391(c)(1)(C)). This new intercity service would be administered by a new Joint Powers Board made up of representatives from transportation agencies of each of the eight counties along the route, including a representative from San Luis Obispo Council of Governments (PUC 250000). The measure also provides for state support for operating costs of the new service (PUC 99316(a)). In addition, local ownership of the right-of-way would give San Luis Obispo authority to pursue other local transportation priorities, such as bikeways, along the corridor. PROVIDES ADDITIONAL NEW FUNDING SOURCES FOR OTHER IMPORTANT LOCAL TRANSPORTATION NEEDS IN SAN LUIS OBISPO CALTEA creates a number of statewide annual funding programs for which jurisdictions in San Luis Obispo County would be eligible, including•. Grade separations. Provides annual funding source of approximately$14 million per year to fund railroad/road grade separations (R&T 7103(i); S&H 191.1). (Additionally, requires that at least $15 million per year be spent on grade separations with existing State Highway Account funds (S&H 191.1(d)). Fog Safety. Provides annual funding source of approximately $7 million per year for fog related safety improvements to state highways and local roads (R&T 7103(b); S&H 195). Bicycle and pedestrian projects. Provides annual funding source of approximately $14 million per year for bicycle and pedestrian projects funds (Rev&Tax 7103(d); S&H 894.5). Environmental Improvement. Provides annual funding source of approximately$14 million per year for environmental improvements to mitigate the impact of existing or new transportation facilities. Eligible expenses include urban forestry, park and resolute land acquisitions, wetlands restoration, trails, bike path and agland conservation easements (Rev &Tax 7103(h); S&H 164561). Traffic Signal Synchronization. Provides annual funding source of approximately $14 million per year for traffic signal synchronization programs (R&T 7103((); S&H 196). Electric and clean vehicles. Provides 15 year annual funding source of approximately $14 million per year for research and development and public fleet purchase of electric and clean fuel vehicles (Rev & Tax 7103(e); PRC 25619). Carpooling. Provides annual funding source of approximately $7 million per year for ridesharing services with preference to regions which do not meet state or federal air quality standards (Rev& Tax 7103(g); S&H 197). PROTECTS SAN LUIS OBISPO'S EXISTING TRANSPORTATION FUNDING: Due to severe pressure on the state budget for the past several years there have been repeated legislative efforts to divert to the General Fund virtually every source of state funding dedicated for transportation purposes. With the fiscal pressures expected to remain for the foreseeable future, these raids will almost certainly continue. The initiative process is virtually the only method to permanently protect transportation funds. Protection for funding sources secured through the initiative process cannot be overridden by a subsequent bill or budget--they could only be overridden by another public vote. CALTEA would protect existing transportation funds by making them trust funds which could be used only for their stated purpose, similar to the manner in which Prop 116 protected the TP&D Account. The funds protected include: 1. Transportation Development Account (TDA)/ Local Transportation Funds (LTF) San Luis Obisoo County was allocated $4.4 million in TDA funds in 1992-93.** Two years ago there was a strong legislative effort to divert TDA funds to backfill the General Fund. After a hard battle this effort failed, but could easily be revived. By making TDA a trust fund, CALTEA would prevent any future attempt to raid these funds (Govt. 29531). 2 Transportation Planning and Development (TP&D) Account (State Transit Assistance (STA) and Transit Capital Improvement (TCI)) The Transportation Planning and Development (TP&D) Account is the only ongoing state funding source for transit capital and operations. After funding intercity rail operations, the bulk of the funds (nearly $200 million per year) is split between State Transit Assistance (STA) and Transit Capital Improvement (TCI) programs (The TCI program is also funded from a second source discussed below.) In the past two years more than $1.7 million in TCI funds have been awarded to nroiects in San Luis Obispo County including the San Luis Obispo train layover facility, Grover Beach station. regionwide transit bus rehabilitation intermodal transit center feasibility study. and Paso Robles multimodal facility.' Last year there was a serious legislative attempt to eliminate the TCI program. This would have foreclosed TCI as a needed source of future funds for bus and rail projects in San Luis Obispo. Prior to Prop 116, which protected the TP&D Account as a trust fund, this fund was routinely, and almost entirely, diverted. Although Prop 116 successfully preserved the account, there have still been creative legislative attempts to subvert the trust fund by using the funds to service the rail bonds and taking the interest earned. These attempts have been thwarted to date, but CALTEA will fully resolve this issue by closing even these small loopholes (PUC 99310.7). 3. 'Guideway Minimum" Funds (Transit Capital Improvement Program) San Luis Obispo County voters have approved the use of gas tax for rail. All such counties are entitled to their share (by population) of guideway funds. Originally set by statute, these funds comprise the second portion of the TCI program. The amount has ranged from $64 million to $75 million annually. As a so called"Prop S county, San Luis Obispo is guaranteed its share (by population) of guideway funds. Unfortunately, the Governor's current 1994-5 budget completely eliminates this funding source. On the other hand, CALTEA would permanently retain this funding source at its historical funding level (S&H 199.12). 4. State Highway Account (SHA) In recent years funds have been loaned or diverted from the State Highway Account to pay debt service on the state rail bonds. This debt was supposed to be paid by the General Fund. In addition, the interest and rental income earned by the account has been swept into the General Fund. Last year the State Highway Account was hit for nearly 5200 million. By making the State Highway Account a trust fund, CALTEA would prevent diversion of any highway funds, including interest and income, for purposes other than which they are intended (S&H 199.13(a,c&d), 199.14). Sources: ` California Department of Transportation, Transportation Development Act: Statutes and California Codes of Regulations.January1994. " California Transportation Commission, 1993 Annual Report to the California Legislature: Volume 1I. December 15, 1993. "• State Controller Gray Davis, Financial Transactions Concerning Transit Operators and Non-Transit Claimants Under the Transportation Development Act: Annual Report 1992-93. (7-5-94)