HomeMy WebLinkAboutE-08 Metro Ballot Measure ResolutionCONSENT ITEM
E-8
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: DANIEL BOBADILLA, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
DATE: JUNE 20, 2016
SUBJECT: ADOPT A RESOLUTION TO ENCOURAGE THE LOS ANGELES COUNTY
METROPOLITAN TRANSPORATION AUTHORITY BOARD OF DIRECTORS TO
PLACE A MEASURE ON THE NOVEMBER 8, 2016 BALLOT TO GENERATE
ADDITIONAL REVENUES FOR TRANSPORTATION IMPROVEMENTS IN LOS
ANGELES COUNTY
SUMMARY:
The Los Angeles County Metropolitan Transportation Authority (Metro) expects Los Angeles County to
grow by 2.4 million people by 2057. As a result of this population increase, Metro is proactively
updating its Long Range Transportation Plan (LRTP) to enhance mobility and quality of life for Los
Angeles County to position the region for future growth and meet transportation needs. To fund the
projects and programs identified in the LRTP, Metro is considering a ballot measure for November 2016
that would augment the current Measure R tax initiative with a new half-cent sales tax and extend the
current Measure R tax rate. The proposed action will adopt a resolution encouraging Metro to place a
measure on the November 2016 ballot.
RECOMMENDATION:
Staff recommends that the City Council take the following action:
1) Adopt the attached Resolution No. 2016-C48 encouraging the Los Angeles County Metropolitan
Transportation Authority to place a measure on the November 2016 ballot to generate additional
revenues for transportation projects in Los Angeles County.
DISCUSSION:
Metro predicts Los Angeles County population will increase by 2.4 million people by 2057. To prepare
for the influx of people and the impact it will create on the County’s transportation system, Metro is in
the process of updating its LRTP to enhance mobility and quality of life in Los Angeles County. The
foundation for the updated LRTP is a draft Expenditure Plan which provides a vision, through nine
APPROVED
COUNCIL MEETING
6/20/2016
with revision of Resolution
2016-C48
Los Angeles County Metropolitan Transportation Authority
June 20, 2016
Page 2
categories of funding, for the variety of transit related infrastructure and programs needed to build and
operate a balanced multi-modal transportation system.
Specifically, the draft Expenditure Plan identifies major highway and transit projects evaluated and
sequenced based on performance metrics approved by the Metro Board of Directors at its December
2015 meeting. The draft Expenditure Plan also includes projects that are necessary to improve and
enhance system connectivity; promote bicycling and walking; support Americans with Disabilities
Act/paratransit services for the disabled; discounts for students and seniors; investments to fund bus and
rail operations; ongoing system maintenance repair, including repair of bridges and tunnels; and funds
for repair and enhancement of local streets and roads. To fund these projects and programs, Metro is
considering a ballot measure for November 2016 that would augment the current Measure R with a new
half-cent sales tax, and extend the current Measure R tax rate to 2057.
The current Measure R is a half-cent sales tax initiative passed by Los Angeles County voters in 2008 to
provide a 30-year funding source through 2039 for transit and highway transportation projects
throughout the County. The draft Expenditure Plan anticipates over $120 billion over a 40-year period.
It relies on the following assumptions: a half-cent sales tax augmentation to begin in Fiscal Year 2018;
an extension of an existing half-cent sales tax rate beyond the current expiration of Measure R in 2039;
with a combined one-cent sales tax sunset in the year of 2057. It shall be noted that Metro is also
considering the possibility of a “no sunset” scenario for the one-cent sales tax, generating sales tax
revenues in perpetuity or until voters decide to end the taxes.
Fund elements and allocations of the draft Expenditure Plan are as follows:
Major Transit Construction Projects: 35% Allocation
Major Highway Projects: 17% Allocation
Transit Operations: 20% Allocation
Local Return: 16% Allocation
Metro Rail Operations: 5% Allocation
Metro State of Good Repairs, Safety Improvements, & Aging Infrastructure: 2% Allocation
Americans with Disabilities Act (ADA) Paratransit Services for the Disabled; Discounts for
Seniors and Students: 2% Allocation
Regional Rail: 1% Allocation
Regional Active Transportation Program (ATP): 2% Allocation
Approximately $19.2 billion is expected to be generated under the Local Return element during the term
of the proposed new sales tax. Of this amount, the City is expected to initially receive $575,000 annually
to fund its transportation needs, with amounts growing exponentially in the later years of the new
measure.
A number of cities have raised concerns over the proposed ballot. Specifically, several cities are
requesting 2% of gross annual revenues of proposed Measure R2 be set aside for a green complete
streets program to assist cities in funding storm water programs as required by the Municipal Separate
Storm Sewer System (MS4) permit. In addition, the proposed ballot measure only allocates 16% of the
revenues collected to local cities. The proposed 16% Local Return is simply insufficient for the 40 year
time period, especially considering the precipitous drop in State Gas Tax revenues cities are
experiencing and the growing cost of road maintenance and repair. In comparison, cities currently
receive a local return of 25% from Proposition A and 20% from Proposition C. Metro’s proposal to
Los Angeles County Metropolitan Transportation Authority
June 20, 2016
Page 3
provide a 16% Local Return is only one percentage point above the Measure R Local Return of 15%.
Many cities believe that Metro should set the Local Return rate at 25%. Staff has included language in
the attached Resolution requesting that Metro modify the ballot language to address these concerns.
FISCAL IMPACT:
There is no fiscal impact associated with the recommended action. Though, if Metro places a sales tax
measure on the November ballot and voters approve it, the City would receive approximately $575,000
annually for transportation projects.
Prepared by: Reviewed and Approved:
Daniel Bobadilla, P.E. Louie F. Lacasella
Director of Public Works/City Engineer Management Analyst
Reviewed and Approved:
Troy L. Butzlaff, ICMA-CM
City Manager
Attachment:
1) Resolution No. 2016-C48
RESOLUTION NO. 2016-C48
A RESOLUTION TO ENCOURAGE THE LOS ANGELES COUNTY
METROPOLITAN TRANSPORTATION AUTHORITY (herein, "METRO")
BOARD OF DIRECTORS TO PLACE A MEASURE ON THE NOVEMBER 8,
2016 BALLOT TO GENERATE ADDITIONAL REVENUES FOR
TRANSPORTATION IMPROVEMENTS IN LOS ANGELES COUNTY
WHEREAS, under the State of California Public Utilities Code Section 3001, Metro is a
state-created agency formed for the local operation of a comprehensive mass rapid transit
system in Los Angeles County;
WHEREAS, one of the state-mandated functions of Metro is to further the declared
policy of the State to foster the development of trade and movement of people in and around
Los Angeles County for the benefit of the entire State;
WHEREAS, mobility of goods and people throughout Los Angeles County is critical
to a vibrant economy that provides opportunities throughout the region;
WHEREAS, Los Angeles County already experiences among the highest levels of
congestion and delay of any area in the United States;
WHEREAS, these mobility needs will increase given that the county is projected to
add nearly 2.3 million people and 1.4 million jobs over the next 40 years.
WHEREAS, Metro’s 2009 Long Range Transportation Plan (herein, “LRTP”)
identified the Foothill Extension of the Gold Line to Claremont as a “First Priority for new
funding to close any funding gaps”;
WHEREAS, the agency is developing an updated LRTP that will help address these
challenges and needs;
WHEREAS, the LRTP will consist of programs and projects that are essential to
meeting the transportation needs of the future including improving the region's streets, roads,
and bike and pedestrian connections; enhancing the transit network; supporting the needs of
seniors, the disabled, and students; providing critical multimodal transportation solutions
to expand travel choices; and relieving congestion throughout the county in order to move
people and goods more efficiently while also reducing greenhouse gas emissions;
WHEREAS, the interests of Los Angeles County residents and businesses will benefit
by the implementation of this new LRTP;
WHEREAS, the new plan will not only provide mobility solutions but will also generate
employment in the region;
WHEREAS, Federal and State dollars available for transportation funding are
increasingly constrained and insufficient to meet the needs and priorities of this plan;
WHEREAS, Los Angeles County will therefore need to generate funding locally to
implement this plan;
WHEREAS, the 16% Local Return allocation from the proposed ballot measure is
insufficient to repair and maintain local roads, considering the precipitous drop in State Gas Tax
revenues;
WHEREAS, Metro shall set the Local Return allocation at 25%, similar to the local
return of 25% from Proposition A;
WHEREAS, in response to the latest Municipal Separate Storm Sewer System (MS4
Permit) adopted by the Los Angeles Regional Water Quality Control Board, the City of Azusa
will need to invest over $343 million in storm water compliance programs over the next two
decades, with approximately $4.29 annually for Complete Green Streets Programs;
WHEREAS, the City of Azusa has no funding source to implement any of these
stormwater programs and thus requests apportionment of the proposed ballot measure revenues
for Complete Green Streets Programs;
WHEREAS, Metro has already demonstrated success and leveraging local funds to
garner federal matching funds;
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE
CITY OF AZUSA recommends and encourages that the Los Angeles County Metropolitan
Transportation Authority Board of Directors vote to place a measure before the voters in Los
Angeles County on November 8, 2016 to generate new revenue for transportation in Los
Angeles County.
PASSED, APPROVED and ADOPTED this 20th day of June, 2016.
___________________________________
Joseph Romero Rocha
Mayor
ATTEST:
___________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2016-C48 was duly adopted by
the City Council of the City of Azusa at a regular meeting thereof, held on the 20th day of June,
2016, by the following vote of Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
___________________________________
Jeffrey Lawrence Cornejo, Jr.,
City Clerk
APPROVED AS TO FORM:
___________________________________
Best Best & Krieger, LLP
City Attorney