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HomeMy WebLinkAboutStaff Report 3.D 03/19/2018DATE: March 19, 2018 Agenda Item #3. TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan St. John, RASCE — Director, Public Works & Utilities Jeff Stutsman, P.E. — Senior Civil Engineer, Public Works & Utilities SUBJECT: Resolution Supporting Proposition 69 and Opposing the Repeal of Senate Bill 1, Road Maintenance and Rehabilitation Account Funds RECOMMENDATION It is recommended that the City Council adopt a Resolution Supporting Proposition 69 and Opposing the Repeal of Senate Bill 1, Road Maintenance and Rehabilitation Account Funds. BACKGROUND On April 28, 2017, the Governor signed Senate Bill l (SB1), which is known as the Road Repair and Accountability Act of 2017, to address basic road maintenance, rehabilitation and critical safety needs on both the state highway and local streets and road system. SB 1 raises funds for this purpose by increasing the per gallon fuel excise taxes, the diesel fuel sales taxes and the vehicle registration fees and provides for inflationary adjustments to tax rates in future years. Beginning November 1, 2017, the State Controller will deposit portions of this funding into the newly created Road Maintenance and Rehabilitation (RMRA). A percentage of this funding will be apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system. SB 1 would provide additional funding for the City of Petaluma for critical road maintenance and rehabilitation projects, as summarized below: FY I FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 SBI Amount 1 $341,124 $1,023,313 $1,023,313 $1,043,779 $1,064,655 These amounts are currently budgeted in the 5 -year Capital Improvement Program SB 1 would separately provide the remaining funding necessary to construct the Marin Sonoma Narrows C2 project through Petaluma, which includes the construction of the Rainier Crosstown Connector underpass. The construction of the underpass is funded by the City, but will be administered by Caltrans in conjunction with the Marin Sonoma Narrows C2 project. The proposed action supports the Council Goal: "Plan for and implement priority capital projects as funding permits." DISCUSSION Passed by legislature on April 6, 2017, ACA 5 Frazier; now known as Proposition 69 was part of the agreement to secure passage of SB 1. Proposition 69 will prohibit the legislature from raiding any of these new transportation funds and ensures that these funds cannot be borrowed or diverted by the legislature and can only be used for transportation purposes. In addition, there is a draft ballot measure that has not yet qualified for the November 2018 ballot that would repeal the new transportation revenues provided by SB 1 and make it more difficult to increase funding for state and local transportation improvements in the future. A fact sheet prepared by the advocacy group, Fix California Roads, is included as Attachment 2. By adopting the proposed resolution, the City Council would join the League of California Cities and many of its members in supporting California Proposition 69 and opposing the potential repeal of SB 1. These provisions are essential to the City for funding critical infrastructure projects FINANCIAL IMPACTS If S131 is repealed; $4,496,184 would be removed from the Capital Improvement Program over the next five years. The loss of SBI funding would leave the City's pavement maintenance program severely underfunded. ATTACHMENTS 1. Resolution 2. Exhibit A — Fix California Roads Fact Sheet 2 RESOLUTION SUPPORTING PROPOSITION 69 AND OPPOSING THE REPEAL OF SENTATE BILL 1, ROAD MAINTENCACE AND REHABILITATION ACCOUNT FUNDS WHEREAS, California's cities, counties and transportation agencies face a statewide backlog of over $130 billion in needed funds to make transportation infrastructure improvements; and WHEREAS, "The Road Repair and Accountability Act" (SB 1) passed by the Legislature and signed by the Governor last year, will raise $5 billion annually in long-term, dedicated transportation funding to make road safety improvements, fill potholes and repair local streets, highways, bridges and overpasses, with the revenues split equally between state and local government projects; and WHEREAS, SB 1 provides critically -needed funding for the City of Petaluma that will be used for: Streets Begin End Treatment B Street Petaluma Blvd South El Rose Drive Slurry Seal I Street Petaluma Blvd South Grevillia Dr. Slurry Seal Grant Street I Street Mountain View Ave Slurry Seal Madison Street Arlington Drive Lakeville Street Slurry Seal McKenzie Avenue McDowell Blvd S. Stuart Drive Slurry Seal Kresky Way Stuart Drive Lindberg Lane Slurry Seal Lindberg Way Saint Francis Drive McDowell Blvd S. Slurry Seal St Francis Drive Lindberg Lane Lombardi Avenue Slurry Seal S. McDowell Ext. Lakeville Hwy Bridge Slurry Seal; and WHEREAS, SB 1 contains strong accountability provisions to streamline projects by cutting bureaucratic redundancies and red tape to ensure transportation funds are spent efficiently and effectively, while also establishing the independent office of Transportation Inspector General to perform audits, improve efficiency and increase transparency; and WHEREAS, Proposition 69 on the June 2018 ballot would add additional accountability for taxpayers by preventing the State Legislature from diverting or raiding any new transportation revenues for non -transportation improvement purposes; and WHEREAS, there is also a proposed ballot measure aimed for the November 2018 ballot, , that would repeal the new transportation revenues provided by SB 1 and make it more difficult to increase funding for state and local transportation improvements in the future; and WHEREAS, this proposed November proposition would raid $1,023,313 annually that is dedicated to the City of Petaluma, and halt critical investments in future transportation improvement projects in our community. 3 THEREFORE, BE IT RESOLVED that the City of Petaluma hereby supports Proposition 69, the June 2018 constitutional amendment to prevent new transportation funds from being diverted for non -transportation purposes; and BE IT FURTHER RESOLVED that the City of Petaluma hereby opposes the proposed November ballot proposition, Attorney General #17-0033, that would repeal the new transportation funds and make it more difficult to raise state and local transportation funds in the future; and THEREFORE BE IT FURTHER RESOLVED that the City Council of the City of Petaluma: 1. 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 and opposing the repeal of SB 1. 2. Directs the City Clerk to email a copy of this adopted resolution to Kyle Griffith of the Coalition to Protect Local Transportation Improvements campaign at kgriftith(a�bcfpublicaffairs. com. 3. Authorizes the City Manager to provide related support letters to relevant organizations and agencies as necessary to promote Proposition 69 and oppose repeal of SB 1. L! Californians depend on a safe and reliable transportation network to support our quality of life and a strong economy. In April 2017, California passed Senate Bill 1 (SB 1) which provides more than $5 billion annually to make road safety improvements, fill potholes, repair local streets, freeways, tunnels, bridges and overpasses and invest in public transportation in every California community. Road safety and transportation improvement projects are already underway across the state, but this long-awaited progress could come to a halt unless voters take action in 2018. The Coalition to Protect Local Transportation Improvements has formed to support Proposition 69 which protects transportation funds from being diverted and to oppose the November 2018 measure that would repeal new transportation funds. Here's how you can help: June 2018 ballot measure prohibits the Legislature from diverting new transportation funds and ensures they can only be used for transportation projects. Extends constitutional protections to the new revenues generated by SB 1 that aren't currently protected. Guarantees transportation funds can only be used for transportation improvement purposes. Will not raise taxes. Protects transportation taxes and fees we already pay. OPPOSE REPEAL OF SB I[-% November 2018 ballot measure would repeal SB 1 and rob our communities of vital road safety and transportation improvement projects. Certain politicians are currently collecting signatures to try to repeal the Road Repair and Accountability Act of 2017 (SB 1) and stop critical investments in future transportation improvement projects. Our broad coalition opposes this measure now because its passage would: Jeopardize public safety. This measure would halt roadway improvements at the state and local level that will save lives and increase safety for the traveling public. According to the National Highway Traffic Safety Administration, poor roadways were a contributing factor in more than half of the 3,623 roadway fatalities on California roads in 2016. Get the Facts @ flxcaroads.com I #RebuildingCA 5 OPPOSE the November 2018 ballot measure that would repeal SB 1 and rob our communities of vital road safety and transportation improvement projects. Stop transportation improvement projects already underway in every community. This measure would eliminate funds already flowing to every city and county to fix potholes, make safety improve- ments, ease traffic congestion, upgrade bridges, and improve public transportation. 4,000 local transpor- tation improvement projects are already underway across the state thanks to SB 1. Make traffic congestion worse. Our freeways and major thoroughfares are among the most congested in the nation, and Californians spend too much time stuck in traffic away from family and work. This mea- sure would stop projects that will reduce traffic congestion. Cost drivers and taxpayers more money in the long -run. The average driver spends $739 per year on front end alignments, body damage, shocks, tires and other repairs because of bad roads and bridg- es. Additionally, it costs eight times more to fix a road than to maintain it. By delaying or stopping proj- ects, this measure will cost motorists more money in the long run. Hurt job creation and our economy. Reliable transportation infrastructure is critical to get Californians to work, move goods and services to the market, and support our economy. This measure would elimi- nate more than 680,000 good -paying jobs and nearly $183 billion in economic growth that will be created fixing our roads over the next decade. Paid for by the Coalition to Protect Local Transportation Improvements, sponsored by business, labor, local governments, transportation advocates and taxpayers Committee Major Funding from League of California Cities California Alliance for Jobs Funding details at www.fppc.ca.gov Get the Facts @ fixcaroads.com I #RebuildingCA 6