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CC - Item 2G - Supporting Prop 1A-1E 2006-32• E M F 5 O * 4 M!1 'WILD 9 ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCI FROM: ANDREW C. LAZZARETTO, CITY MANAGER DATE: OCTOBER 24, 2006 SUBJECT: PROPOSITION 1A-1E SUMMARY In May 2006, the California State Legislature placed Proposition 1A - 1 E on the statewide November 2006 ballot for voter consideration. Combined, these measures embody and represent a $37.3 billion package of fiscal bond measures to provide funding for housing, transportation, levee / flood control projects, and educational facilities. Proposition 1A will close a loophole and ensure that gas tax revenue from Proposition 42, passed by voters in 2002, is only spent on transportation improvement projects, as originally intended. Proposition 1B will provide up to $20 billion on various transportation projects to rebuild California, of which $1 billion will go to cities and $1 billion to counties for local streets and roads improvement projects. Proposition 1C will provide $2.8 billion for housing projects, including $1.35 billion that helps cities address housing-related infrastructure issues, consisting of $850 million in grants for development of public infrastructure projects that facilitate or support infill housing construction, $200 million for parks, and $300 million for development near public transportation. Proposition 1D will improve California's weakening school system by providing $10 billion for performing school building repairs and providing innovative learning facilities for Californian students, including seismic retrofitting and classroom repairs. Proposition 1E will provide $4 billion for critical river levee repair and construction, as well as flood control projects and the updating and repair of old water mains and sewage systems. Staff Recommendation Staff recommends that the City Council approve Resolution 2006-32 (Attachment A), supporting the approval of Propositions 1A - 1 E. APPROVED FOR CITY COUNCIL AGENDA: • • City Council Meeting October 24, 2006 Page 2 of 5 ANALYSIS This measure is not a bond, but a constitutional amendment designed to "fix" Proposition 42 - the 2002 ballot measure that funded transportation - by permanently dedicating the sales tax on gasoline to transportation purposes. If approved, this measure will restrict the Legislature's ability to borrow the Prop. 42 funds to the following: • The Governor must declare that the state faces a severe fiscal hardship, and the Legislature must enact a statute authorizing the borrowing by two-thirds vote. At the same time, the Legislature must pass a bill specifying that they will repay the loan with interest within three years. The state can borrow the funds no more than twice in 10 years, and must repay a prior loan before borrowing. ■ Any Prop. 42 transportation funds that were borrowed by the state but not repaid as of July 1, 2007, must be repaid within a 10 year period (no later than June 30, 2016) at payment of no less than one-tenth per year of the total amount owed. Proposition 1 B - Highway Safety Traffic Reduction Air Quality, and Port Security Bond Act of 2006. If approved, this measure would allocate monies in the following fashion: $2 billion for the Local Street and Road Improvement, Congestion Relief, and Traffic Safety Account, allocated directly to cities and counties for traffic congestion relief, traffic safety, transit, storm damage, maintenance, construction and other projects to improve the local street and road system. $1 billion will go directly to cities (minimum $400,000 allocation), and $1 billion will go directly to counties. • $4.5 billion to Corridor Mobility Improvement Account to fund performance improvements on highly congested travel corridors. This includes major access routes to the state highway system on the local road systems that relieve congestion. • $1 billion for improvements to State Route 99 traversing approximately 400 miles of the Central Valley. • • City Council Meeting October 24, 2006 Page 3 of 5 ■ $3.1 billion for the California Ports Infrastructure, Security, and Air Quality Improvement Act. Of the $3.1 billion, $2 billion is to fund improvements to trade corridors, $1 billion to State Air Resources Board for emission reductions related to goods movement, and $100 million for the Office of Emergency Services for publicly-owned port, harbor and ferry terminal improvements. ■ $200 million for school bus retrofitting and replacement to reduce air pollution. ■ $2 billion for projects in the State Transportation Improvement Program (STIP). ■ $4 billion for the Public Transportation Modernization Improvement and Service Enhancement Account for improvements to intercity rail and other transit-related projects and improvements. Of the $4 billion, $400 million is dedicated to rail improvements and purchase of railcars and locomotives. ■ $1 billion for the State-Local Partnership Program Account for transportation projects nominated by a regional transportation agency. This program requires a dollar for dollar match of local funds. • $1 billion for the Transit System Safety, Security and Disaster Response Account for projects that increase protection again security and safety and develop disaster response for public transit systems. ■ $125 million for the Local Bridge Seismic Retrofit Account for seismic work on local bridges, ramps, and overpasses. • $750 million for the Highway Safety, Rehabilitation and Preservation Account (SHOPP) for safety, rehabilitation and preservation projects on state highway systems. $250 million of the funds in this account are for technology-based improvements to improve safety, operations and effective capacity of local streets and roads. ■ $250 million for the Highway-Railroad Crossing Safety Account for completion of high-priority grade separation and railroad crossing safety improvements. Proposition 1 C - Housing and Emergency Shelter Trust Fund Act of 2006. Prop. 1C contains $2.85 billion in funding to address a range of housing needs. Major components of the measure include the following: Infill Housing Construction - $850 million in grants for development of public infrastructure projects that facilitate or support infill housing construction. Projects could include water, sewer and transportation improvements, traffic mitigation, brownfield clean up and up to an additional $200 million for parks. • • City Council Meeting October 24, 2006 Page 4 of 5 ■ Urban, Suburban and Rural Parks - $200 million ■ Transit-Oriented Development - $300 million to develop and construct housing and infrastructure projects within close proximity to transit stations ■ Affordable Home Ownership Programs - $725 million to help over 23,600 families become or remain homeowners If approved, this measure would provide $10.4 billion in bonds to be deposited into the 2006 State School Facilities fund, which will be used to meet capital outlay needs of higher educational facilities, and finance grants for construction and renovation of schools, including charter schools and facilities for career technical education programs, and to relieve overcrowded schools. Major initiatives that would be funded by this measure include the following: • $1.9 billion for new construction of school facilities. • $500 million for providing school facilities to charter schools. ■ $3.3 billion for modernization of school facilities. ■ $500 million for facilities for career technical education programs. ■ $1 billion for new construction to fund severely overcrowded school sites. ■ $1.5 billion for CA Community Colleges. ■ $890 million for UC and Hastings College of Law. ■ $690 million for CSU. Proposition 1 E - Disaster Preparedness and Flood Prevention Bond Act of 2006. If approved, this bond would provide a total of $4.09 billion to prevent flooding by repairing levees and other flood control infrastructure in the Sacramento-San Joaquin River Delta and elsewhere. The funds would also be allocated as follows: ■ $3 billion to evaluate, repair, rehabilitate, reconstruct or replace levees, weirs, bypasses and facilities contained in the state flood control plan; improve or add facilities to increase levels of flood prevention; and reduce the risk of levee failure. 0 • City Council Meeting October 24, 2006 Page 5 of 5 $500 million to cover the past and future obligations under the flood control subvention payments to local governments for qualifying projects. • $290 million for the protection, creation, and enhancement of flood protection corridors and bypasses, including fund for floodplain mapping. • $300 million for grants (with local match) to manage storm water runoff to reduce flood damage and provide benefits such as ground water recharge, water quality improvement and ecosystem. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: Oliver Chi Director of Administrative Services Attachment A: Resolution 2006-32 9 • RESOLUTION 2006-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD SUPPORTING PROPOSITIONS 1A, 1B, 1C, 1 D, AND 1 E ON THE NOVEMBER 2006 BALLOT WHEREAS, the City of Rosemead is responsible for building and maintaining infrastructure that is essential to building and preserving the economic and social well-being of the residents and businesses of this city; and WHEREAS, these infrastructures include roadways, public transit systems, bike lanes, and other transportation systems; schools; affordable housing; drinking water and sewage treatment systems; parks and other amenities; and WHEREAS, the city currently is responsible for maintaining existing streets and is tasked with the growing need to expand investments in streets, transit systems, bike lanes, infill and transit-oriented housing, and other improvements to meet the needs of an evolving city; and WHEREAS, the California State Legislature passed a $37.3 billion package of fiscal and bond measures to provide funding for housing, transportation, levee repairs and flood control projects and education facilities in May 2006; and WHEREAS, these measures have been titled Propositions 1A, 1B, 1C, 1D, and 1E by the Secretary of State and will be placed on the November 2006 ballot for voter approval, and WHEREAS, Proposition 1A will close a loophole and ensure that gas tax revenue from Proposition 42, passed by voters in 2002, is only spent on transportation improvement projects, as originally intended; and WHEREAS, Proposition 1 B will provide up to $20 billion on various transportation projects to rebuild California, of which $1 billion will go to cities and $1 billion to counties for local streets and roads improvement projects; and WHEREAS, Proposition 1C will provide $2.8 billion for housing projects, including $1.35 billion that helps cities address housing-related infrastructure issues, consisting of $850 million in grants for development of public infrastructure projects that facilitate or support infill housing construction, $200 million for parks, and $300 million for development near public transportation; and WHEREAS, Proposition 1D will improve California's weakening school system by providing $10 billion for performing school building repairs and providing innovative learning facilities for Californian students, including seismic retrofitting and classroom repairs; and WHEREAS, Proposition 1E will provide $4 billion for critical river levee repair and construction, as well as flood control projects and the updating and repair of old water mains and sewage systems; and s Resolution 2006-32 October 24, 2006 Paqe 2 of 2 0 WHEREAS, the League of California Cities is in strong support of Propositions 1A - 1E and 84, and views this package of measures as providing critically needed resources for California cities. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. The City hereby expresses its strong support for Propositions 1A, 1 B, 1 C, 1 D, and 1 E, which will be presented for voter approval on the November 2006 statewide ballot. PASSED, APPROVED and ADOPTED by the City Council of the City of Rosemead on this 24`h day of October, 2006. Mayor, City of Rosemead ATTEST: City Clerk