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CC - Item 6B - Resolution In Support Of Measure J on November BallotROSEMEAD CITY COUNCIL STAFF REPORT TO: MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER DATE: OCTOBER 23. 2012 SUBJECT: RESOLUTION IN SUPPORT OF MEASURE J ON NOVEMBER BALLOT SUMMARY The City Council will consider adoption of a Resolution in support of Measure J, a Los Angeles County ballot measure to extend the 2008 voter - approved Measure R one -half cent ($0.05) traffic relief sales tax for an additional 30 years from 2039 to 2069. Recommendation: City Council direction is requested. BACKGROUND In 2008, the voters of Los Angeles County approved the Measure R one -half cent ($0.05) sales tax for a period of 30 years to construct various traffic relief transportation projects. Measure J, which will appear on the November 2012 ballot, seeks to extend the one -half cent ($0.05) Measure R sales tax for an additional 30 years, from 2039 to 2069. Attached is a proposed Resolution in support of Measure J, which has been prepared for City Council consideration. Also attached is the Impartial Analysis of Measure J, the Argument in Favor of Measure J, the Rebuttal to Argument in Favor of Measure J, the Argument Against Measure J, and the Rebuttal to Argument Against Measure J. Attachments ITEM NO. �. R RESOLUTION NO. 2012-64 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD IN SUPPORT OF MEASURE J, A LOS ANGELES COUNTY BALLOT MEASURE TO EXTEND THE VOTER- APPROVED MEASURE R ONE-HALF CENT TRAFFIC RELIEF SALES TAX FOR AN ADDITIONAL 30 YEARS WHEREAS, Measure J would extend the Measure R one -half cent ($0.05) sales tax, approved in 2008, for an additional 30 years from, 2039 to 2069; WHEREAS, Measure J would provide additional revenue for transportation projects including expanding and enhancing rail and bus systems, improving highways, repairing potholes and streets; and WHEREAS, Measure J would generate revenues to accelerate the completion of various transportation projects, which potentially includes construction of the $1.4 Billion Light Rail Gold Line Eastside Extension project along the SR -60 Freeway if designated by Metro; and WHEREAS, Measure J would facilitate financing of transportation projects to accelerate the creation of jobs during a period when interest rates and construction costs are at historic lows and unemployment rates are high; and WHEREAS, Measure J would provide revenues for reduced fares for senior citizens, disabled individuals, and students; and WHEREAS, Measure J would mandate that revenues generated by the $0.05 sales tax would be allocated solely for the transportation purposes consistent with the expenditure plan described in the Measure R ordinance and consistent with the prior establishment of an Independent Taxpayer Oversight Committee and annual audit requirements. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES HEREBY RESOLVE TO SUPPORT THE PASSAGE OF MEASURE J ON THE NOVEMBER 6, 2012 ELECTION BALLOT. SECTION 1: This Resolution shall take effect upon adoption. SECTION 2: The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 23rd day of October, 2012. Sandra Armenta Mayor ATTEST: Gloria Molleda City Clerk APPROVE AS TO FORM: Rachel Richman City Attorney RESOLUTION NO. 2012-64 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD IN SUPPORT OF MEASURE J, A LOS ANGELES COUNTY BALLOT MEASURE TO EXTEND THE VOTER- APPROVED MEASURE R ONE -HALF CENT TRAFFIC RELIEF SALES TAX FOR ANOTHER 30 YEARS WHEREAS, Measure J would extend the Measure R one -half cent ($0.05) sales tax, approved in 2008, for an additional 30 years from, 2039 to 2069; WHEREAS, Measure J would provide additional revenue for transportation projects including expanding and enhancing rail and bus systems, improving highways, repairing potholes and streets; and WHEREAS, Measure J would generate revenues to accelerate the completion of various transportation projects, which potentially includes construction of the $1.4 Billion Light Rail Gold Line Eastside Extension project along the SR -60 Freeway if designated by Metro; and WHEREAS, Measure J would facilitate financing of transportation projects to accelerate the creation of jobs during a period when interest rates and construction costs are at historic lows and unemployment rates are high; and WHEREAS, Measure J would provide revenues for reduced fares for senior citizens, disabled individuals, and students; and WHEREAS, Measure J would mandate that revenues generated by the $0.05 sales tax would be allocated solely for the transportation purposes consistent with the expenditure plan described in the Measure R ordinance consistent with the prior establishment of an Independent Taxpayer Oversight Committee and annual audit requirements. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES HEREBY RESOLVE TO SUPPORT THE PASSAGE OF MEASURE J ON THE NOVEMBER 6, 2012 ELECTION BALLOT. SECTION 1: This Resolution shall take effect upon adoption. SECTION 2: The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 23rd day of October, 2012. Sandra Armenta Mayor ATTEST: IMPARTIAL ANALYSIS OF MEASURE J By John F. Krattli, County Counsel Approval of Measure J would authorize adoption of an ordinance proposed by the Los Angeles County Metropolitan Transportation Authority ( "Metro "), to extend the previously approved Measure R retail transactions and use tax ( "Sales Tax") for an additional 30 years, from 2039 to 2069, at the current rate of one -half of one percent (0.5 %), as well as the adoption of an expenditure plan. The Sales Tax extension may be terminated by the voters following adoption and qualification of a ballot initiative pursuant to the Elections Code and Public Utilities Code. Measure R was approved by the voters in 2008 to impose the Sales Tax for an initial 30 years to raise revenue for transportation related expenditures, including expanding and enhancing rail and bus systems, improving highways, repairing potholes and streets, and suspending scheduled fare increases. Measure J will extend the Sales Tax for an additional 30 years from 2039 to 2069. Revenues from the Sales Tax extension shall be used to accelerate the completion of Measure R projects until those projects are complete, and to provide reduced fares to senior citizens, disabled individuals and students and to expand Metro's reduced fare programs, and other expenses as provided in the ordinance. To the extent necessary to accelerate completion of a project, Metro may authorize expenditure of funds derived from the initial Measure R Sales Tax. Once the Measure R projects are complete, the revenues received from the Sales Tax extension would be allocated solely for the transportation purposes described in the ordinance. Such funds would be available only for projects and programs described in the expenditure plan of the ordinance. Metro may adopt an amendment by a two- thirds (2/3) vote to transfer net revenues between the Transit Capital Subfund and the Highway Capital Subfund within the same subregion. All other provisions remain the same as stated in the ordinance implementing Measure R, with the prior establishment of an Independent Taxpayer Oversight Committee and the annual audit requirements to remain in effect. (Continued on next page) PR- 905108 -1 N LA 166 -029 IMPARTIAL ANALYSIS OF MEASURE J (Continued) This measure requires a two thirds (2/3) vote of the qualified voters in the County of Los Angeles who cast votes in the election. The Sales Tax would only be extended if the State Legislature approves pending legislation specifically authorizing the Sales Tax extension, providing that the Sales Tax extension is exempt from the rate limit established by law, and does not mandate expenditure of the Sales Tax extension revenues in a manner different or contrary to Metro's expenditure plan. Assuming legislative approvals are obtained and are effective prior to January 2, 2013, Measure J would tax effect on January 2, 2013, with the Sales Tax extension imposed on July 1, 2039, immediately upon expiration of the initial Sales Tax. NOTICE TO VOTERS The above statement is an impartial analysis of Measure J. If you desire a copy of the ordinance and exhibit, please call the elections official's office at (562) 466 -1310 and a copy will be mailed at no cost to you. You may also access this information on the county website at www.lavote.net PR- 905106 -2 N LA 166 -030 ARGUMENT IN FAVOR OF MEASURE J Measure J will create hundreds of thousands of jobs in ILA County over the next decade by speeding up local highway and transit projects. Measure J accelerates the completion of public transit projects and provides more funding for countywide highway, transit, and local street improvements by continuing the County's voter - approved one -half cent traffic relief sales tax without a tax rate increase. CREATES OVER 400,000 JOBS. With LA County suffering 12 percent unemployment, Measure J will create over 410,000 local jobs, according to the Las Angeles County Economic Development Corporation. SPEEDS UP PROJECTS. Measure J will speed up the completion of light rail, subway and airport connection projects in just 13 years rather than 27 years. It enables local cities to fix thousands of potholes annually and repair congested and deteriorated roads countywide. IMPROVES FREEWAY TRAFFIC FLOW. Measure J will improve traffic flow on the 5, 10, 14, 60, 101, 110, 134, 138, 210, 405, 605 and 710 freeways. Measure J will upgrade our aging freeway and highway system, including bridge and tunnel improvements, and help prepare for hundreds of thousands of additional cars expected in coming decades. IMPROVES EARTHQUAKE SAFETY. Measure J will speed the earthquake repair of aging bridges, tunnels and overpasses. KEEPS SENIOR FARES LOW. Measure J keeps bus fares low for seniors, students and the disabled. ALL FUNDS STAY LOCAL, WITH STRICT ACCOUNTABILITY PROVISIONS. Measure J requires that all revenues stay in Los Angeles County, with no money for Sacramento. By law, funds can be used ONLY for transportation improvement projects and services with annual independent audits and full public review of expenditures. (Continued on next page) PR- 905108 -3 N LA 166 -031 ARGUMENT IN FAVOR OF MEASURE J (Continued) Jumpstart local jobs and traffic relief. Vote YES on J. For more information, visit Measure.J4Jobs.org. GARY L. TOEBBEN President & CEO Los Angeles Area Chamber of Commerce ROBERT HUNTER Executive Secretary Los Angeles /Orange Counties Building and Construction Trades Council BARBARA A. MESSINA Mayor, City of Alhambra President, San Gabriel Valley Council of Governments MARY LESLIE President, Los Angeles Business Council ADRIANO MARTINEZ Director Southern California Environmental Justice Project, Natural Resources Defense Council PR- 90510E-0 N U1 188 -032 REBUTTAL TO ARGUMENT IN FAVOR OF MEASURE J Measure J is filled with FALSE PROMISES of job creation and accelerated traffic relief. It manipulates voters into paying more taxes without accountability or protections on how that money is spent. Measure J falsely promises accelerated projects but the truth is: -NO ACCELERATION of the Green Line connection to LAX without outside funding -NO FUNDING for rail connections to our regional airports —Long Beach, Ontario, Bob Hope, Palmdale -NO FUNDING for the Crenshaw Line's Leimart Park Station and Wilshire Extension -NO FUNDING to extend the Gold Line to Claremont -NO FULL FUNDING for the I -405 Corridor Project -NO HELP for the Exposition Line to Santa Monica Measure J proponents intentionally overstate the creation of jobs in Los Angeles County. Jobs can only be created if struggling federal and state agencies give us billions of dollars to complete Measure J projects. Measure J won't £1x gridlock. The same projects were already promised in 2008, but will now take 60 years of taxation instead of 30. Measure J DOESN'T MANDATE "funding ... bridges, safety and traffic flow improvements; fixing potholes." Measure J DOESN'T MANDATE "keeping senior, student, disabled fares low." Measure J SHORTCHANGES Metrolink's fair share of funding to improve passenger safety and travel speed —by locking in Metrolink at 3 %. Measure J disenfranchises growing cities and unincorporated communities – by tying funding to frozen 2004 population levels. Measure J forces a heavy burden onto taxpayers, creating massive debt for our grandchildren – all for one political, multi - billion dollar bloated subway. Join local business leaders, Chambers of Commerce and elected officials and vote NO on Measure J. DON FLEMING Santa Clarita Valley Economic Development Corporation DR. SANDRA E. THOMAS Former State Director, NAACP R. REX PARRIS Mayor, City of Lancaster CAROL CHEN Councilmember, City of Cerritos RICHARD P. MONTGOMERY Councilmember, City of Manhattan Beach PR- 985188 -5 N LA 166 -033 ARGUMENT AGAINST MEASURE J Measure J may sound great, but it's classic bait- and - switch! It is deeply flawed, inequitable, and ill- timed. In 2008, Measure R promised the voters of Los Angeles County that if they taxed themselves for the next 30 years through a half -cent sales tax, they'd have new transportation projects delivered on time and on budget to ease traffic congestion throughout the County. Now, just 4 years later, Metro is coming back asking for more of your money. Why? Because they know the higher taxes you're already paying aren't enough to finish the projects they promised you. Just because the money is accelerated doesn't mean the projects you were promised will get completed Measure J relies on funding that is not guaranteed. For example, the Green Line to LAX cannot be built without outside funding. In fact, there is no money to connect rail to the Long Beach, Ontario, Bob Hope or Palmdale airports as Measure J promises. Because Measure J only accelerates projects already on the books, it won't create any new lobs that wouldn't have been created under Measure R. Measure J is just a way for all County residents to pay for the pet projects of one municipality and does not guarantee that all 88 cities get their fair share. For example, San Fernando Valley represents 37% of Los Angeles City population, but they only received 13% of the City's Measure R funding. Some Los Angeles County residents will be paying taxes until 2069 that will never be invested in their communities. Measure R listed specific projects for construction and only allowed changes to that list after 10 years. Measure J removes those taxpayer protections and allows special interests to move monev right now. We need honest, responsible traffic relief — but a blank check that our kids and arandkids will pay for the next 60 years is not the answer. Vote NO on Measure J! MICHAEL D. ANTONOVICH Chairman, Los Angeles County MTA DON KNABE Los Angeles County Supervisor, MTA Board Member JOHN PARKER Chairman of the Board, United Chambers of Commerce of the San Fernando Valley MARIO A. GUERRA Council Member, City of Downey SAM PEDROZA Council Member, City of Claremont Pa- 905108 -6 N LA 16"34 REBUTTAL TO ARGUMENT AGAINST MEASURE J Measure J rejects the old pork - barrel politics that gave us congested freeways in favor of immediate jobs and traffic relief. OUR COUNTY NEEDS JOBS NOW. Measure J creates jobs now, when unemployed workers in Los Angeles County need them most and construction prices are low. Accelerating highway and transportation projects will create 410,000 jobs over the next ten years. COUNTYWIDE PLAN. Measure J is a countywide plan. The first major project was the Orange Line extension in the San Fernando Valley, completed on schedule and under budget Measure J will accelerate projects in the San Fernando Valley, South Bay, San Gabriel Valley, southeast Los Angeles County and North County. This includes a new transit line connecting the San Fernando Valley to West Los Angeles and highway improvements in all parts of the county. INDEPENDENT OVERSIGHT. Measure J mandates independent oversight by a committee of retired judges to make sure tax dollars are spent properly. LOCALLY - CONTROLLED STREET REPAIR Measure J means every city and every part of unincorporated Los Angeles County will get 30 additional years of locally- controlled funding to invest in better streets, roads, sidewalks and transit. JOBS NOW, INVESTMENT FOR THE FUTURE. Measure J is an investment in the future. Measure J means jobs now and a modern, efficient transportation system that works for everyone for the long -term. Vote YES on Measure J! DAVID W. FLEMING San Fernando Valley Civic Leader SERGIO RASCON Business Manager, Laborers Local 300 BARBARA A. MESSINA Mayor, City of Alhambra President, San Gabriel Valley Council of Governments MARTHA DIAZ ASZKENAZY Chair of the Valley Economic Alliance JOIN FASANA Mayor of Duarte Chair SGV, COG Transportation Committee PR- 905108 -7 N LA 166 -035