CC SR 20150804 F - Sustainable Funding of State and Local Transportation InfrastructureCITY OF lLiWCHO PALOS VERDES
MEMORANDUM
TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS
FROM: MICHAEL THRONE, PE, DIRECTOR OF PUBLIC WORKS kb
DATE: AUGUST 4, 2015
SUBJECT: SUPPORT FOR SUSTAINABLE FUNDING OF STATE
AND LOCAL TRANSPORTATION INFRASTRUCTURE
(SUPPORTS 2014 CITY COUNCIL GOAL NO. 2,
INFRASTRUCTURE)
REVIEWED: DOUG WILLMORE, CITY MANAGER
RECOMMENDATIONS
1. Adopt Resolution No. 2015-_; a Resolution of the City Council of the City of
Rancho Palos Verdes urging the state to provide new sustainable funding for state
and local transportation infrastructure.
2. Authorize the City Manager to join the Fix Our Roads Coalition on behalf of the
City.
EXECUTIVE SUMMARY
The League of California Cities is seeking support from local jurisdictions to urge
Governor Brown and members of the Legislature to actively seek out and create new and
sustainable sources of funding to rehabilitate and maintain our network of local streets
and roads and the state highway system.
BACKGROUNDIDISCUSSION
Governor Brown has called for an Extraordinary Session on Transportation and
Infrastructure for when the members of the state legislature reconvene on August 17. The
League of California Cities Board of Directors has formally adopted a resolution urging
that the Governor and Legislature provide for new and reliable funding sources for the
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The key points are listed below and are more fully described on the attached fact sheet
and in the Resolution.
1. Make a significant investment in transportation infrastructure.
2. Focuz 311 maintaining and rehabilitating the current system.
3. Equal split between state and local projects.
4. Raise revenues across a broad range of options.
5. Invest a portion of diesel tax and/or cap & trade revenue to high-priority goods
movement projects.
6. Strong accountability requirements to protect the taxpayers' investment.
7. Provide consistent annual funding levels.
The League has also requested in addition to support from the City Council that the City
join the Fix Our Roads Coalition for purposes of communication, information, and support.
A copy of the membership form is attached.
ALTERNATIVES
The City Council may choose not to support the request from the League of California
Cities, direct changes to the Resolution, or select a different representative to the Fix Our
Roads Coalition.
CONCLUSION
It is recommended that the City Council adopt the attached Resolution to the Governor
and Legislators, and support membership in the Fix Our Roads Coalition.
FISCAL IMPACT
There is no direct fiscal impact of the recommended action. The City in the future may
benefit from new sources of funding for the maintenance and rehabilitation of local streets
and roads if it becomes available.
Attachments:
• Resolution No. 2015- (page 3)
• Fix Our Roads Coalition membership form (page 8)
• League of California Cities Fix Our Roads Coalition fact sheet (page 10)
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES
URGING THE ST AT E TO
w.,` • • SUSTAINABLE i • s:
STATE AND LOCAL TRANSPORTATION INFRASTRUCTURE
WHEREAS, Governor Edmund G. Brown, Jr. has called an extraordinary session
to address the immense underfunding of California's transportation infrastructure; and
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 City of Rancho Palos Verdes has participated in efforts with the
League of California Cities and California's Regional Transportation Planning Agencies
to study unmet funding needs for local roads and bridges, including sidewalks and other
essential components; and
WHEREAS, the resulting 2014 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 as predicted in the initial 2008 study; and
WHEREAS, the results show that California's local streets and roads are on a path
of significant decline. On a scale of zero (failed) to 100 (excellent), the statewide average
pavement condition index (PCI) is 66, placing it in the "at risk" category where pavements
will begin to deteriorate much more rapidly and require rehabilitation or rebuilding rather
than more cost-effective preventative maintenance if funding is not increased; and
WHEREAS, the results show that the City of Rancho Palos Verdes' local streets
have a statewide average pavement index of 82, placing the City in the "very good"
category; and
WHEREAS, if funding remains at the current levels, in 10 years, 25 percent of local
streets and roads in California will be in "failed" condition; and
WHEREAS, cities and counties need an additional $1.7 billion just to maintain a
status quo pavement condition of 66, and much more revenue to operate the system with
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Best Management Practices, which would reduce the total amount of funding needed for
maintenance in the future; and
WHEREAS, models show that an additional $3 billion annual investment in the
local streets and roads system is expected to improve pavement conditions statewide
from an average "at risk" condition to an average "good" condition; and
WHEREAS, if additional funding isn't secured now, it will cost taxpayers twice as
much to fix the local system in the future, as failure to act this year will increase unmet
funding needs for local transportation facilities by $11 billion in five years and $21 billion
in ten years; and
WHEREAS, modernizing the local street and road system provides well -paying,
construction jobs and boosts local economies; and
WHEREAS, the local street and road system is also critical for farm to market
needs, interconnectivity, multimodal needs, and commerce; and
WHEREAS, police, fire, and emergency medical services all need safe reliable
roads to react quickly to emergency calls and a few minutes of delay can be a matter of
life and death; and
WHEREAS, maintaining and preserving the local street and road system in good
condition will reduce drive times and traffic congestion, improve bicycle safety, and make
the pedestrian experience safer and more appealing, which leads to reduce vehicle
emissions helping the State achieve its air quality and greenhouse gas emissions
reductions goals; and
WHEREAS, restoring roads before they fail also reduces construction time which
results in less air pollution from heavy equipment and less water pollution from site run-
off; and
WHEREAS, in addition to the local system, the state highway system needs an
additional $5.7 billion annually to address the state's deferred maintenance; and
WHEREAS, in order to bring the local system back into a cost-effective condition,
at least $7.3 billion annually in new money going directly to cities and counties; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Rancho
Palos Verdes strongly urges the Governor and Legislature to identity a sufficient and
El
stable funding source for local street and road and state highway maintenance and
rehabilitation to ensure the safe and efficient mobility of the traveling public and the
economic vitality of California__
BE IT FURTHER RESOLVED that the City Council of the City of Rancho Palos
Verdes strongly urges the Governor and Legislature to adopt the following priorities for
funding California's streets and roads.
1. Make a significant investment in transportation infrastructure. Any
package should seek to raise at least $6 billion annually and should
remain in place for at least 10 years or until an alternative method of
funding our transportation system is agreed upon.
2. Focus on maintaining and rehabilitating the current system. Repairing
California's streets and highways involves much more than fixing
potholes. It requires major road pavement overlays, fixing unsafe
bridges, providing safe access for bicyclists and pedestrians, replacing
storm water culverts, as well as operational improvements that
necessitate the construction of auxiliary lanes to relieve traffic
congestion choke points and fixing design deficiencies that have created
unsafe merging and other traffic hazards. Efforts to supply funding for
transit in addition to funding for roads should also focus on fixing the
system first.
3. Equal split between state and local projects. We support sharing
revenue for roadway maintenance equally (50150) between the state
and cities and counties, given the equally -pressing funding needs of
both systems, as well as the longstanding historical precedent for
collecting transportation user fees through a centralized system and
sharing the revenues across the entire network through direct
subventions. Ensuring that funding to local governments is provided
directly, without intermediaries, will accelerate project delivery and
ensure maximum accountability.
4. Raise revenues across a broad range of options. Research by the
California Alliance for Jobs and Transportation California shows that
voters strongly support increased funding for transportation
improvements. They are much more open to a package that spreads
potential tax or fee increases across a broad range of options, including
fuel taxes, license fees, and registration fees, rather than just one
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source. Additionally, any package should move California toward an all -
users pay structure, in which everyone who benefits from the system
contributes to maintaining it — from traditional gasoline -fueled veh --e---,
to new hyijnas or electric vehicles, to commercial vehicles. �-
5. Invest a portion of diesel tax and/or cap & trade revenue to high-priority
goods movement projects. While the focus of a transportation funding
package should be on maintaining and rehabilitating the existing
system, California has a critical need to upgrade the goods movement
infrastructure that is essential to our economic well-being. Establishing
a framework to make appropriate investments in major goods movement
arteries can lay the groundwork for greater investments in the future that
will also improve air quality and reduce greenhouse gas emissions.
6. Strong accountability requirements to protect the taxpayers' investment.
Voters and taxpayers must be assured that all transportation revenues
are spent responsibly. Local governments are accustomed to employing
transparent processes for selecting road maintenance projects aided by
pavement management systems, as well as reporting on the
expenditure of transportation funds through the State Controller's Local
Streets and Roads Annual Report.
7. Provide Consistent Annual Funding Levels. Under current statute, the
annual gas tax adjustment by the Board of Equalization is creating
extreme fluctuations in funding levels — a $900 million drop in this budget
year alone. A transportation funding package should contain legislation
that will create more consistent revenue projections and allow Caltrans
and transportation agencies the certainty they need for longer term
planning.
PASSED, APPROVED, and ADOPTED this 4th day of August 2015.
Jim Knight, Mayor
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ATTEST:
CARLA MORREALE, City Clerk
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, Carla Morreale, City Clerk of the City of Rancho Palos Verdes, hereby
certify that the above Resolution No. 2015 , was duly and regularly passed and
adopted by the said City Council at a regular meeting thereof held on 2015.
CARLA MORREALE, City Clerk
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I Support the Fix Our Roads Coalition
Principles for New Transportation Funding in
the Legislative Special Session
Yes, I/my organization support(s) efforts to secure new sources of
stable, accountable funding to fix California's highways and road
infrastructure. I/we sign -on to join the "Fix our Roads" coalition
and in support of the following principles that should guide the
legislative special session on transportation.
1. Make a significant investment in transportation infrastructure.
2. Focus on maintaining and rehabilitating the current system.
stalk' Au'(1111t1"1t,Ee Folgi!t
g. Invest a portion of diesel tax and/or cap & trade revenue to high-priority
goods movement projects.
4. Raise revenues across a broad range of options.
5. Equal split between state and local projects.
6. Strong accountability requirements to protect the taxpayers' investment.
7. Provide consistent annual funding levels.
Please select a category: ❑ Organization ❑ Company ❑ Elected official
Company or Organization Name
Name
Street address
City
Phone number
Title/Occupation
State Zip County
Fax number
E-mail Address
Signature (Required) Date
Email or fax this form to: acelesius(&bcfDublicaffairs.corii or 916-442-3510 (fax)
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Problem: California lacks adequate funding to fix
crumbling roads, highways, bridges and transportation
infrastructure.
California's netwofl of roads and h_ ighways are critical to our quality of life ani
economy. Yet the condition of our deteriorating network of roads is staggering:
• Our crumbling roads cost motorists nearly $60o a year per driver for
vehicle maintenance.
• California has the second highest share of roads in "poor condition" in the nation.
• 58% of state roads need rehabilitation or pavement maintenance.
• California has 6 of 10 cities with the worst road conditions in the nation.
Stahly Arcoontable hmdiM
. 55% of local bridges require rehabilitation or replacement.
• Nearly 70% of California's urban roads and highways are congested.
• Without additional funding, 1/4 of local streets and roads will be in failed condition by 2024.
Our state lacks adequate funding to address these critical deficiencies:
• Local streets and roads face an estimated shortfall of $78 billion in deferred maintenance and
an annual shortfall of $7.8 billion.
• CalTrans faces a $59 billion backlog in deferred maintenance and an annual shortfall in the
State Highway Operation and Protection Program (SHOPP) of $5.7 billion.
Solution: A responsible, accountable solution to fix our roads.
A broad coalition of cities, counties, labor, business, public safety and transportation advocates has
formed to meet the Governor's call to address California's chronic transportation infrastructure
funding shortfall. During the 2015 special session on transportation, we support the following
priorities:
1. Make a significant investment in transportation infrastructure.
If we are to make a meaningful dent that demonstrates tangible benefits to taxpayers and
drivers, any package should seek to raise at least $6 billion annually and should remain in place
for at least 10 years or until an alternative method of funding our transportation system is
agreed upon.
2. Focus on maintaining and rehabilitating the current system.
Repairing California's streets and highways involves much more than fixing potholes. It
requires major road pavement overlays, fixing unsafe bridges, providing safe access for
bicyclists and pedestrians, replacing storm water culverts, as well as operational improvements
that necessitate, among other things, the construction of auxiliary lanes to relieve traffic
congestion choke points and fixing design deficiencies that have created unsafe merging and
other traffic hazards.
Efforts to supply funding for transit in addition to funding for roads should also focus on fixing
the system first.
3. Invest a portion of diesel tax and/or cap & trade revenue to high-priority goods
movement projects. 10
While the focus of a transportation funding package should be on maintaining and
rehabilitating the existing system, California has a critical need to upgrade the goods movement
infrastructure that is essential to our economic well-being. Establishing a framework to make
appropriate investments in major goods movement arteries can lay the groundwork for greater
investments in the future that will also improve air quality and reduce greenhouse gas
emissions.
4. Raise revenues across- _ a broaa range of options. -
Research by the California Alliance for Jobs and Transportation California shows that voters
strongly support increased funding for transportation improvements. They are much more
open to a package that spreads potential tax or fee increases across a broad range of options
rather than just one source. Additionally, any package should move California toward an
allusers pay structure in which everyone who benefits from the system contributes to
maintaining it - from traditional gasoline -fueled vehicles, to hybrids, alternative fuel and or
electric vehicles, to commercial vehicles. Our coalition supports:
• Reasonable increases in:
o Gasoline and diesel excise taxes. o Vehicle registration and vehicle license
fees.
• Dedicating a portion of the cap and trade revenue paid by motorists at the pump to
transportation projects that reduce greenhouse emissions.
• Ensuring existing transportation revenues are invested in transportation -related
purposes (i.e. truck weight fees and fuel taxes for off-road vehicles that are currently
being diverted into the general fund).
• User charge for electric and other non-fossil fuel powered vehicles that currently do not
contribute to road upkeep.
,. Equal split between state and local projects.
We support sharing revenue for roadway maintenance equally (50/50) between the state and
cities and counties. Funding to local governments should be provided directly (no
intermediaries) to accelerate projects and ensure maximum accountability.
6. Strong accountability requirements to protect the taxpayers' investment. Voters
and taxpayers must be assured that all transportation revenues are spent responsibly.
Authorizing legislation should:
• Constitutionally protect transportation revenues for transportation infrastructure only.
Time and again (Prop 42, 2002; Prop 1A, 2006; Prop 22, 2010), voters have
overwhelmingly supported dedicating and constitutionally protecting transportation
dollars for those purposes. We strongly support protections that prohibit using
transportation dollars for other purposes.
• Repay existing transportation loans and end ongoing diversions of transportation
revenues, including approximately $850 million in loans to the general fund and the
annual loss of approximately $140 million in off-highway vehicle fuel taxes.
Strong accountability requirements to protect the taxpayers' investment
(Continued).
• Establish performance and accountability criteria to ensure efficient and effective use
of all funding. All tax dollars should be spent properly, and recipients of new rev4*s
should be held accountable to the taxpayers, whether at the state or local level.
Counties and cities should adopt project lists at public hearings and report annually to
the State Controller's Office regarding all transportation revenues and expenditures.
Local governments should also commit to ensuring any new revenues supplement
revenues currently invested in transportation projects. Both Caltrans and local
governments can demonstrate and publicize the benefits associated with new
transportation investments.
® Caltrans refori and oversight. To increase Caltrans effectiveness, provide stronger
oversight by the state transportation commission of the programs funded by new
revenues and establish an Inspector General office to provide accountability. Reduce
Caltrans administrative budgets through efficiency reviews with all savings to be spent
on road improvements.
® Expedite project delivery. More should be done to streamline project delivery,
including but not limited to:
o Establishing tiinelines for actions required by state agencies and eliminating
other permit delays.
o Increased implementation of alternative delivery systems that encourage more
investment from the private sector. o Reforms to speed project completion.
7. Provide Consistent Annual Funding Levels.
Under current statute, the annual gas tax adjustment by the Board of Equalization is creating
extreme fluctuations in funding levels -- a $goo million drop in this budget year alone. A
transportation funding package should contain legislation that will create more consistent
revenue projections and allow Caltrans and transportation agencies the certainty they need for
longer term planning. While this change would not provide any new revenue to transportation,
it would provide greater certainty for planning and project delivery purposes.
im