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HomeMy WebLinkAboutRes 2018-22 - Support Prop 69 RESOLUTION NO. 2018-22 STAFF REPORT CITY OF PALM DESERT ADMINISTRATIVE SERVICES DEPARTMENT MEETING DATE: May 10, 2018 PREPARED BY: Stephen Y. Aryan, Risk Manager REQUEST: Request for adoption of Resolution No. 2018- 22 , a resolution of the City Council of the City of Palm Desert supporting Proposition 69, the June 2018 constitutional amendment to prevent new transportation funds generated by Senate Bill 1 from being diverted for non-transportation purposes. Recommendation By Minute Motion, waive further reading and adopt. Committee Recommendation The Palm Desert Legislative Review Committee recommended supporting Proposition 69. Strategic Plan The Transportation Section of the Palm Desert Strategic Plan incorporates a mini-vision that by 2033, each resident and visitor will have safe, convenient, and efficient transportation options. Ensuring the State Legislature cannot divert the road maintenance and transportation safety related funds provided under SB 1 (Beall) will assist in accomplishing this vision. Background Analysis Senate Bill 1 (Beall), the Road Repair and Accountability Act of 2017, was passed by the California Legislature and signed into law by the Governor in April 2017. SB 1 calls for investing $5 billion annually over the next decade and prioritizes funding towards maintenance, rehabilitation, and safety improvements on state highways, local streets and roads, and bridges. It also seeks to improve the state's trade corridors, transit, and active transportation facilities. A vast majority of the new revenues for cities under SB 1 comes out of the newly created Road Maintenance and Rehabilitation Account (RMRA). Cities will have to prioritize fixing their existing infrastructure first (i.e. a Maintenance of Effort average based on general fund road maintenance expenditures), before having additional flexibility to use RMRA funds for other transportation needs. Senate Bill 1 contains strong accountability provisions that will streamline projects by eliminating excessive bureaucracy and ensure transportation funds are spent effectively. It also establishes the independent office of Transportation Inspector General to perform audits, improve efficiency, and increase transparency. May 10, 2018 - Staff Report Resolution No. 2018- Page 2 of 2 Proposition 69 on the June 2018 ballot adds additional accountability for taxpayers by preventing the California Legislature from diverting (or borrowing) any new transportation revenues for non-transportation improvement purposes. Specifically, it would extend constitutional protections to the new transportation revenues generated by SB 1 that are not already protected, ensuring that the State can only use these funds for transportation improvement purposes. The Road Repair and Accountability Act of 2017 provides a significant, stable, and on-going increase in state transportation funding by increasing p/gallon fuel excise taxes, increasing diesel fuel sales taxes/vehicle registration fees, and providing for inflationary adjustments to tax rates in future years. The League of California Cities and Southern California Association of Governments support Proposition 69 to protect transportation funds generated by Senate Bill 1. The City will also become a member of the Coalition to Protect Local Transportation Improvements with the passing of the proposed resolution. Fiscal Analysis While there is no direct fiscal impact with the support of Proposition 69, staff anticipates that the City would receive approximately $6.6 million dollars over the next five years from RMRA revenues, should the City meet the established Maintenance of Effort requirements. LEGAL REVIEW DEPT. REVIEW FINANCIAL CITY MANAGER REVIEW N/A N/A ll� Robert W. Hargreaves Lori Carney Janet Moore Lauri Aylaian City Attorney Director of Administrative Services Director of Finance City Manager ATTACHMENT: Resolution No. 2018- Proposition 69 Fact Sheet RESOLUTION NO. 2018- 22 REQUEST FOR ADOPTION OF RESOLUTION NO. 2018- 22 , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT SUPPORTING PROPOSITION NO. 69, THE JUNE 2018 CONSTITUTIONAL AMENDMENT TO PREVENT NEW TRANSPORTATION FUNDS GENERATED BY SENATE BILL 1 FROM BEING DIVERTED FOR NON-TRANSPORTATION PURPOSES. WHEREAS, cities and counties own and operate more than 81 percent of streets and roads in California, and from the moment we open our front door to drive to work, bike to school, or walk to the bus station, people are dependent upon a safe, reliable local transportation network; and WHEREAS, the 2016 California Statewide Local Streets and Roads Needs Assessment, which provides critical analysis and information on the local transportation network's condition and funding needs, indicates that the condition of the local transportation network is deteriorating at an increasing rate; and WHEREAS, cities and counties are facing a funding shortfall of $73 billion over the next 10-years to repair and maintain in a good condition the local streets and roads system and the State Highway System has $57 million worth of deferred maintenance; and WHEREAS, SB 1 — the Road Repair and Accountability Act of 2017 — will raise approximately $5.4 billion annually in long-term, dedicated transportation funding to rehabilitate and maintain local streets, roads, and highways, make critical, life-saving safety improvements, repair and replace aging bridges and culverts, reduce congestion and increase mobility options including bicycle and pedestrian facilities with the revenues split equally between state and local projects; and WHEREAS, these transportation revenues should be constitutionally protected to ensure funds are used only for transportation purposes; and WHEREAS, Proposition 69 on the June 2018 ballot would add another layer of accountability by preventing the State Legislature from diverting or raiding any new transportation revenues for non-transportation improvement purposes. NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY RESOLVE AS FOLLOWS: SECTION 1. That the City of Palm Desert hereby supports Proposition 69 on the June 2018 ballot to prevent new transportation funds from being diverted for non- transportation purposes; and SECTION 2. That the City of Palm Desert supports and can be listed as a member of the Coalition to Protect Local Transportation Improvements, a diverse coalition of local government, business, labor, transportation and other organizations throughout the state, in support of Proposition 69. Resolution No. 2018- 22 Proposition No. 69 Page 2 of 2 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, on this 10th day of May 2018, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: SABBY JONATHAN, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA PROTECT LOCAL YES ON 69- IMPORTATION • 4MPRtIVEMEHTS UPrevent The Legislature From Redirecting Transportation Revenues And Ensure They Can Only Be Used To Fund Transportation Improvements Proposition 69 on California's June 2018 ballot ensures existing transportation revenues we pay at the pump and when we register our vehicles can ONLY be used for road and transportation improvement projects. Proposition 69 prohibits the Legislature from diverting these revenues for non-transportation purposes. In 2017, California passed Senate Bill 1, which provides more than $5 billion in new revenues to fund transportation improvements all over California. Prop 69 constitutionally protects the portion of these new revenues that aren't already protected. PROP 69 REQUIRES TRANSPORTATION FUNDS BE SPENT ON PRIORITIES LIKE FIXING LOCAL ROADS, HIGHWAYS, BRIDGES AND OTHER TRANSPORTATION PROJECTS. YES on 69 protects transportation taxes and fees we already pay for. v/ SAFETY IMPROVEMENTS to repair aging and deteriorating bridges, tunnels and overpasses, as well as highways, freeways and local streets and roads. Al FILLING POTHOLES AND PAVING OVER CRACKED AND CRUMBLING ROADS. ve RELIEVING TRAFFIC CONGESTION by adding new lanes and making repairs toremove bottlenecks that cause congestion. UPGRADING LIGHT-RAIL AND COMMUTER RAIL, buses and other public transportation services to reduce traffic congestion and improve air quality. +/ IMPROVING PEDESTRIAN SAFETY by building and upgrading crosswalks and sidewalks. PROP 69 PROTECTS TRANSPORTATION FUNDS AND BENEFITS EVERY CALIFORNIA COMMUNITY. Proposition 69 protects revenues dedicated to every city, county and transportation agency in the state for repairing local roads and improving public transportation. PROP 69 DOES NOT INCREASE TAXES. Proposition 69 protects existing taxes and fees we are already paying. It does not raise taxes. VOTE YES ON 69 TO ADD STRONG ACCOUNTABILITY AND ENSURE OUR TRANSPORTATION REVENUES CAN ONLY BE USED FOR TRANSPORTATION IMPROVEMENT PROJECTS Paid for by the Coalition to Protect Local Transportation Improvements, Yes on Prop.69, sponsored by business, labor, local governments,transportation advocates and taxpayers Committee Major Funding from League of California Cities California State Association of Counties State Building and Construction Trades Council of California California Alliance for Jobs Funding details atwww.fppc.ca.gov