HomeMy WebLinkAbout11/02/1999, A1-A - APPOINTMENT OF CITY REPRESENTATIVES TO THE LOCAL OPTION SALES TAX PROGRAM STEERING COMMITTEE council agcnbA
CITY OF SAN LUIS OBISPO
CITY HALL, 990 PALM STREET
Tuesday, November 2, 1999
ADDED ITEM:
APPOINTMENT
Al. APPOINTMENT OF CITY REPRESENTATIVES TO THE LOCAL OPTION SALES
TAX PROGRAM STEERING COMMITTEE. (DUNN/GEORGE)
RECOMMENDATION: Appoint Vice Mayor Romero to the Local Option Sales Tax Program
Steering Committee and appoint the City Administrative Officer or his designee as alternate
and supporting staff.
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CounClL MMi 1( t
® aGenaa nepom °Al
CITY OF SAN LUIS OBISPO
FROM: John Dunn, City Administrative Offi
Prepared by: Wendy George,Assistant to the Ci strative Officer W
SUBJECT: APPOINTMENT OF CITY REPRESENTATIVES TO THE LOCAL
OPTION SALES TAX.PROGRAM STEERING COMMITTEE
CAO RECOMMENDATION
Appoint Vice Mayor Romero to the Local Option Sales Tax Program Steering Committee and
appoint the City Administrative Officer or his designee as alternate and supporting staff.
DISCUSSION
During 1999 four bills (SCA 3, AB 115, SB 315 and AB 10 12)moved through the State legislative
process that,if enacted into law, will ultimately have a significant impact on transportation funding.
The most important of these bills, SCA 3, would amend the State constitution to allow a majority
vote approval for a"one-time" 1/2 percent increase in the local sales tax for transportation purposes.
AB 1155 is the companion bill to SCA 3 and .sets the requirements for development of an
expenditure plan. SB 315 is an$8 million bond measure proposed by Senator Burton and AB 1012
enacts into law various actions designed to speed up the transportation project delivery process.
SCA 3 was approved in the Senate, but failed in the Assembly. Staff at the San Luis Obispo
Council of Governments (SLOCOG) understand that SCA 3 will be resubmitted for consideration
by the Legislature in January, 2000 and that a compromise will likely be worked out allowing its
placement on the November, 2000 ballot. If a compromise is not reached, there is a strong chance
that to achieve its purposes, supporters of SCA 3 will pursue a statewide initiative. AB 1155, the
companion bill to SCA 3, has been approved by the Legislature,but was vetoed by the Govemor as
premature at this time. The veto is not a-statement of opposition to the basic provisions of the bill,
but recognition of the need.to coordinate its development with SCA 3
At its October 5th meeting, the SLOCOG Board authorized staff to begin detailed evaluation of a
Local Options Sales Tax Program for transportation in accordance with the provisions of SCA 3
and AB 1155. The Board also directed staff to establish a Steering Committee comprised of one
elected official from each member jurisdiction, with the respective City Administrative Officer
serving as a'voting" alternate member. The Steering Committee would:
• Guide the process of carrying out a public opinion survey on transportation system
improvements; and
• Assist in development of a capital expenditure program.
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Council Agenda Report-Title of Report
Page 2
Attachment 2 contains a tentative schedule of actions necessary to carry out the public opinion
survey and develop the expenditure program.
The Vice Mayor would be an appropriate appointee to the Steering Committee, given his role on
the SLOCOG Board and his knowledge and history in County-wide transportation issues.
FISCAL IMPACT
There is no fiscal impact to the appointment. However, the outcome of the Steering_ Committee's
work could have a significant impact on our future transportation funding.
Attachments
1 -Letter from SLOCOG dated October 8, 1999
2 -Letter from SLOCOG dated October 13, 1999
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.. ATTACHMENT
,.o Council �oGovernments:
. Artayo.Grande•:
;Regional Transportation Planning Agency Atasr�dero.:
..Grover,Beach .
_.. r .:. . ..'M MorroBay
etropolitan',Planning Organization :.
'Paso Robles
CenSUS'Data,Affiliate'. Pismo Beach
... . . .San;Uis obispa,'
Ronald�,tkCarh'-Eaeculive tiiaePa�. Service Authority for Freeways:and Expressways , san i uis,obispa county;
October 13, 1999
John Dunn, City,Manager
City of San Luis Obispo.
990 Palm Street
San Luis Obispo, Ca 93401-3249. Oct
• 4 egg
Subject: Update on Local Option Sales Tax Program Steering Committee City 9
r ohn: - Aas aL 0
Dea J t/On
This..letter is to update you on ahe lstatus 'of:SCA 3 (Burton) and'AB.1155 (Torlakson) and
formation of.the proposed Local Option Sales Tax Steering :Committee: Governor Davis has
vetoed AB 1'155 because he considered action on it at this time to be"premature". The.veto is
not :statement.of opposition to the basic provisions of the bill,.but the'need to coordinate its
development with that of SCA 3. •Senator`Burton's staff have assured us that SCA 3 and the
major provisions of AB "1155 will be'reconsidered in January.
. The likelihood.of: approval.is
.increasing as-a result of .heavy lobbying of Republican Assemblymembers by Chambers. of
Commerce and business interests throughout the State. = .
. At its October 113`h meeting,.the.SLOCOG Executive Committee agreed with staff that that we
should continue moving forward with formation:of;the Steering Committee:as.proposed in order
to.also obtain relevant information for.long-range strategic planning: On October 18th :& 19th
SLOCOG .President`John -Brown'and 1:will be attending a, conference in::Monterey`.on 'the
proposed ballotmeasure sponsored•.by.the'Self-Help Counties Coalition. This conference:will.
give us the latest information on•the issue and identify a proposed-strategy for proceeding with
:A.he`sales.tax:program.:
Please continue with-the`process to.appoint•an-elected representative to serve on the Steering.
Committee. The Executive Committee requested I that::each. representative identify major:
transportation programs and projects:their.jurisdiction. would. .-like to fund with a supplemental
funding'source.' if you have any questions please feel free to call me at 781-4219.
Sincerely;
GOA.
Ronald:L.,De.Carli
Executive Director
A
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: '` �'T'l " 805"`'78 4219��;Fax.:'805 781-' 703(; ..
115.O.Osos Sire_et;:Sfer 202;.San Luis Obispo.CA.93401 e (80 ). 1 ( }„
E-mail. sl6cog@slone G *InCe net.•htfp Niw.W., o t.otg/-ip;locog
AZTACHMENT 2
San LUis Ob2�po Council o oVernm� tS.
Arroyo 9r oe ..
Re Tonal Trans ortatton Plannin'g gA Atascadero
g P . . .'enc y Gravef Beach ,
Metropolitan Planning Organization imoro.Bay
00
Census Data Affiliate .Pisin
. ,San wis
Rpnnld L.oecMii<Execwive:Direcrnr Service Authprity for Freeways-and Expressways �'s;q.�U;5 Obispo,
Recce ie
October 8, 1.999
John Dunn, City Manager OCT 11 1999.
City of San Luis Obispo
990 Palm Street City Qf S.L.0.
San Luis Obispo,Ca 93401-3249. Ad R11f11StYat.fv7f1
Subject:Steering Committee for Investigation and Possible Development of a Local Option Sales Tax Program •
Dear John: . .
On October 5th the SLOCOG Board authorized staff to.begin_detailed evaluation of a Local Options Sales Tax'.
Prognam'for transportation according to, the provisions'of Senate Constitutional Amendment 3 (Burton).and AB
1155(Torlakson). The Board also directed staff.to establish a S,teenng Committee.comprised of one elected'official
from each member jurisdiction. (with the County/City Executive Officer who could serve as a "voting" alternate
member for their respective elected official)to:
• guide the process of carrying out a public opinion survey on.transportation system improvements;and,
.• assist in development of a capital expenditure program. :
While the Assembly did not approve SCA 3'by September 10'"with.the required 2/3rds vote, it is expected that a
compromise nn the major issue holding up its passage will be reached. The companion bill (AB1155) has be
approved and is awaiting the Governor's signature. It requires a.draft expenditure plan be available.for pu
review.on or before May.1,.2000, and that.it be adopted by June 1st to be.placed on the November ballot. .Give
this schedule, the SLOCOG Board authorized immediate release of a Request for Proposals (RFP)for consultant.
services to conduct a public opinion survey and assist in development of an expenditure plan.. .
Attached is a tentative schedule ofactions ,necessary,to cavy. out the;publid opinion :survey and .develop'the
expenditure program.' Based on.this schedule we propose that'the first meeting of the Steering Committee be,held
sometime in the first week of November..-,The primary purposes.of this meeting will.be.to provide the committee an
overview of::. ;
• . :transportation system improvement needs and options;
• the provisions of SCA 3 and AB 1155;and,
•. 'the proposed consultant scope of work: .
Attached is a staff report providing a description of the provisions.of.SCA 3, and its companion.-bill (AB 115.5)..,
'.Please bring this issue to your Council as soon as possible to appoint amember-to,the Steering Committee;' If you
have any questions please feef free to call meat 781-4219:..
Sincerely,
Ronald L. DeCarii; . .
ExecutNebirector
attachments
A�1�=5•
1150 Osos.Suut,`Stei202'.San;turs.Qbispo,:.CA'93401 ;,Tel..(80.5. 781-42,19. :Fax..(805)781-5703
:1=mail. slodog@slonet org!O Internet. hqp://wwwslonet.org/-ipslotog.'
SAN LUIS OBISPO COUNCIL OF GOVERNMENTS
STAFF REPORT
MEETING DATE October G,`1 J99
SUBJECT Statin pf ro osed'f..... rtation un mp Leg�slattona SCA:3(Local.
Option Sales Tax);AB'I�155(Sales TaxSExp,enctiture Plans), 56.315
(Transportation Bond Measure)and A$1072(Transpoiation"'Pioject
.711
Dehvery�
SUMMARY
During 1999, four bills (SCA 3, AB 1155, SB 315, & AB 1012) moved through the State legislative
process that, if enacted into law,will ultimately have a significant impact on the transportation funding.
The most important of these bills, SCA 3, would amend the State constitution to allow a majority vote
approval for a "one-time" '/z per cent increase in the local sales tax for transportation purposes.. It
was approved in the Senate by the required 2/3rds vote, but failed in the Assembly. It is staffs
understanding that SCA 3 will be resubmitted for consideration by the Legislature in January, 2000, a
compromise may be worked out allowing SCA 3 to be placed on the November, 2000 ballot. If not,
there is a strong chance that a statewide initiative will be pursued by supporters of SCA 3 to achieve
its purposes. In any event, the SLOCOG Board should act now to prepare for the possible enactment
into law of SCA 3 or placement of a similar initiative on the November, 2000 ballot.
The discussion section of this staff report describes the major provisions of SCA 3, and the three
other bills noted above that were approved by both houses of the legislature. These bills include: AB
1155, the companion bill to SCA 3 setting the requirements for development of an expenditure plan;
• SB 315, a possible $8 billion bond measure proposed by Senator Burton; and AB 1012, which enacts
into law various actions designed to speed up the transportation project delivery process. The
discussion section of this staff report summarizes each bill, their current status, and their potential
impact on the SLO Region.
RECOMMENDATIONS
Staff: Proceed with establishing a steering committee to guide survey and expenditure plan
development, and consider a consultant contract for a public opinion poll in November.
Executive Committee: Support Staff Recommendation.
TTAC: Support Staff Recommendation
CTAC:Support Staff Recommendation
DISCUSSION
SCA 3 (Sales Tax for Transportation Purposes): This proposed Constitutional Amendment would
extend the existing %z cent sales tax for transportation purposes an additional 20 years in 18 counties
(with 85% of the state's population), and authorize a '/2 cent sales tax increase for the remaining 41
counties (with approximately 15% of the state's population). To be eligible to use this new revenue
source, the:measure would -need tb,,be approved by"a majority of voters lstatewide and a'!m".0i of;,
the voters in San Luis::Obispo AmEzp
County. enditure,Plan:descnbing howthe fundingAs to;be used
would F
'ave to:be approved by the County board of:Supervisors and ithe City Cauncal��from a ma�onty.
of the 'Cities re'pre'senting a maioft of the population on or bef6mJune 1, 2000: The sales;tax
measure-and theexpenditure,plan would;also have to be.approved:by a.majority of the voter's m ..
county
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On September 7' SCA 3 ed passage in the Assembly by a 4 . 29 vote with five Republicans
abstaining. It still has a chance of being approved in January if a compromise with Republicans on
various related issues can be reached. Without a compromise, the required two-thirds vote approval
of the bill is unlikely. In this case there will likely be an effort by supporters of SCA 3 to gather the
necessary signatures to place the proposition before the voters as a citizen initiative.
oval amendment being. on the November 2000 .ballot, a.
If either action. results in a constituti,
expenditure plan (required rby AB11i155) needs to be:,developed, and approved by:the B69M of
Supervisors, and'a majohty of the cities-with 4a'majority of the population on or=before'June 1., 2000:
At its last meeting the SLOCOG Board authorized staff to distribute an Request for Proposals (RFP)
for a consultant to conduct a public opinion survey, with a contract to be awarded at the October
meeting. Staff subsequently attended a statewide SCA 3 Workshop and shared the input with the
Executive Committee. The workshop attendees, staff, and the Executive Committee recommend that
action continue to be pursued. The Executive Committee further recommended scheduling the
consultant contract award for the November meeting. Expeditious pursuit of the public pinion poll is
believed necessary to adequately frame an expenditure plan by the June 1, statutory deadline.
Your-,,.board in;September authonze&,.fbrmatiori' of a.Steering.Committee consisting of an elected
official from each member agency and the chief administrative officer sitting as an alternate and
supporting staff. The Steering Committee would work with staff and the consultant to develop,
analyze, and recommend an expenditure plan. To further advise staff, the Committee, and your
Board, staff and the consultant will hold meetings with various special interest groups to brief them on
options being considered and seek their input in the process (including: environmental organizations,
chambers of commerce, business associations, etc) . This was done in the 1989 public opinion poll
process to help assure that the concerns and needs of these groups were addressed. The Executive
Committee strongly concurred with moving forward with the steering committee and the initial
meetings.
Following is a tentative schedule of the major activities.that would be carried out:
September 1999 Request for Proposals (RFP)for public opinion survey distributed •
October 1999 Initial meeting of Steering Committee
November 3, 1999 Consultant contract approved by SLOCOG Board
Nov. - Dec. 1999 Public opinion survey developed, conducted and analyzed
Dec. - Feb. 2000 Draft Expenditure Plan prepared
March 8, 2000 SLOCOG holds public hearing on Expenditure Plan
March-May 2000 Plan presented to Cities and County for adoption
June 1, 2000 Adopted Plan submitted to State as required
AB1155 (Sales Tax Expenditure Plans): This is the companion bill to SCA 3, which defines the
required contents of, and approval procedures for the expenditure plan to be funded. It states that a
county may adopt an expenditure plan on or prior to the date of submission of SCA 3 to the statewide
electorate. In addition, a draft of the.plan must be available for public review-and-comment on or before
April 30, 2000. The draft countywide expenditure plan and the final countywide expenditure plan
presented to the voters shall include the following:
• The total estimated cost of the plan and each project contained in the plan.
• The location of proposed projects geographically represented on maps.
• An itemization of all expenditure plan costs, by percentage, for each of the following categories:
1. Expansion and widening of interchanges on state highways.
2. Expansion of public transit.
3. Expansion of local streets and roads.
4. Maintenance, rehabilitation, & operations of state highways.
5. Maintenance, rehabilitation & operations of local streets and roads
6. Maintenance, rehabilitation, and operations of public transit.
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7. Transportation Enhancement activities as defined in Title 23 or the United States Code.
8. Planning and research.
9. Bicycle and pedestrian facilities.
10. Other categories.
SB315 (Transportation Bond Measure) SB315 originally authorized four $2 billion dollar bond
measures ($8b) for transportation in 2002, 2004, 2006, and 2008. The measure was approved by the
Senate and modified in the Assembly striking any reference to specific dollars. It has since been sent to
Conference Committee to develop a final bill for action. Republicans have opposed the bill on the
grounds that its debt financing results in an additional $5.7 billion in interest costs (based on repayment
over 25 years at 5.5% interest). They have since championed an altemative referred to as the 20/20
Vision Plan. This proposal would dedicate the sales tax on fuels to transportation, raising approximately
$800 million per year. This revenue is currently dedicated to the General Fund. Many observers
believe some form of deal will be worked out between the Republicans and Democrats on this bill, the
20/20 Vision Plan, and SCA 3. Should such a deal be developed, an expenditure plan will be
necessary.
AB1012 (Transportation Project Delivery). This bill has passed both houses and is expected to be
signed into law by the Governor. It provides new funding options for development work on
transportation projects, creates a new loan opportunity for large projects and places timely use of funds
requirements on Regional Surface Transportation Program funds. The local implications of this bill are
fully covered in Agenda Item A-3.
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