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CC - Item 5J - Request to Support Metro Measure R Project Finance Acceleration Plan for Measure R ProjectsROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER DATE: JUNE 11, 2013 SUBJECT: REQUEST TO SUPPORT METRO MEASURE R PROJECT FINANCE ACCELERATION PLAN FOR MEASURE R PROJECTS SUMMARY The City recently received a request from the SR -60 Coalition to express support for Metro's proposed Measure R Project Finance Acceleration Plan (Plan). As proposed, the Plan would allow projects scheduled for completion in the second and third decades of the Measure R Expenditure Plan to be accelerated by an average of ten (10) years. One such project that could benefit from the Plan is the construction of the Gold Line Eastside Extension. If built along the State Route 60 Freeway, the Gold Line could bring potential transportation and economic benefits to City residents and businesses. Staff Recommendation It is recommended that the City Council approve Resolution No. 2013-.'30 supporting the Measure R Project Finance Acceleration Plan. BACKGROUND In 2008, the voters of Los Angeles County approved Measure R, a one -half cent sales tax for a period of thirty (30) years to construct various traffic relief transportation projects. Recently, an amendment to Measure R was proposed that would accelerate certain projects listed on the Measure R Expenditure Plan. The proposed amendments would allow projects scheduled for completion in the second and third decades of the Expenditure Plan to be accelerated by an average of ten (10) years. A copy of Metro's Public Notice and the proposed Measure R amendments is included in Attachment A. The public meeting date for the review of the Plan is Thursday, June 27, 2013 at 9:00 a.m. in the Los Angeles County Metropolitan Transportation Authority Boardroom located at One Gateway Plaza, Los Angeles, California. Submitted by: CkA Chris Marcarello Director of Public Works AttachmentA - Resolution No. 2013- 30 Attachment B - Metro Public Meeting Notice and Proposed Measure R Amendments Attachment C - Measure R Expenditure Plan ITEM NUMBER: RESOLUTION NO. 2013- 30 A RESOLUTION OF THE ROSEMEAD, CALIFORNIA CITY COUNCIL IN SUPPORT OF THE MEASURE R PROJECT FINANCE ACCELERATION PLAN FOR MEASURE R PROJECTS WHEREAS, voters in Los Angeles County approved Measure R in 2008, creating an additional one -half cent sales tax to fund county transportation improvements over a thirty (30) year period; and WHEREAS, an amendment to Measure R was proposed that would allow projects scheduled for completion in the second and third decades of the Measure R Expenditure Plan to be accelerated by an average of ten (10) years; and WHEREAS, the Measure R Acceleration Plan would provide 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, the Measure R Acceleration Plan 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. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES HEREBY RESOLVE TO SUPPORT THE MEASURE R ACCELERATION PLAN SCHEDULED FOR REVIEW BY THE METRO BOARD OF DIRECTORS ON JUNE 27, 2013. PASSED, APPROVED and ADOPTED this 11 day of June 2013 Polly Low, Mayor ATTEST: Gloria Molleda, City Clerk APPROVE AS TO FORM: Rachel Richman, City Attorney Measure R Public Meeting Agenda Measure R Public Meeting Agenda* Location & Date Metro Board Room, One Gateway Plaza, 3rd Floor, Los Angeles Thursday, June 27, 2013 9:00 am. Agenda NOTICE OF PUBLIC MEETING Los Angeles County Metropolitan Transportation Authority Page 1 of 2 The Los Angeles County Metropolitan Transportation Authority Board of Directors will hold a public meeting on June 27, 2013 at 9:00 am in the Los Angeles County Metropolitan Transportation Authority (Metro) Boardroom located at One Gateway Plaza, Los Angeles, The Board is considering an amendment to the Measure R Traffic Relief and Rail Expansion Ordinance and Expenditure Plan (also referred to as Attachment A of the Ordinance). This Ordinance was approved by the voters in 2008 and imposed an additional 1/2 of one percent transactions and use tax to fund county transportation improvements over a 30 -year period. The proposed amendments will allow projects scheduled for completion in the second and third decades of the Expenditure Plan to be accelerated by an average of 10 years. The Board is required to hold a public meeting on the proposed amendment prior to adoption. PROPOSED AMENDMENT TO ORDINANCE AND EXPENDITURE PLAN Two amendments to the Measure R Ordinance are being proposed. The fast amendment would add a new section to the Ordinance, Section 18 as noted below. This new section describes the financial conditions under which project acceleration can occur and states that the accelerated project sequence will follow the same order as the adopted 2009 Long Range Transportation Plan. SECTION 18. MEASURE R PROJECT FINANCE ACCELERATION PLAN If TIFIA loans and a TIFIA Master Credit Agreement of at least $3.0 billion combined(1), America Fast Forward Tax Credit Bonds of at least $1.0 billion, and Full Funding Grant Agreements (FFGAs) of at least $1.9 billion combined are executed for one or more of the 12 transit projects, the amended "Funds Available Beginning" dates shown on lines 6, 9, 12, 13, and 16 of Attachment A shall take effect and Metro shall complete all 12 transit projects in the same sequence as the adopted 2009 Long Range Transportation Plan(2). However, if such loan agreements in the sum of at least $4.0 billion or one or both of the FFGAs in the sum of at least $1.9 billion are not executed, this amendment shall not take effect and the "Funds Available Beginning" dates shown on lines 6, 9, 12, 13, and 16 of Attachment A shall not change. http: / /www. metro. net/ aboutlmeetingslboardlmeasure -r- public- meeting- 2013 - 0627 /agenda/ 06/04/2013 Measure R Public Meeting Agenda Page 2 of 2 (1) Including prior transit TIFIA loans with Measure R pledged in repayment. (2) Does not apply to non - Measure R funds. The second proposed amendment would amend the Measure R Expenditure Plan (ATTACHMENT A). Unless amended, the Expenditure Plan approved by the voters does not allow the accelerated expenditure of Measure R funds on transit projects before the dates shown in the "Funds Available Beginning" column of the Expenditure Plan on page 2. The "Funds Available Beginning" dates for certain transit projects need to be amended to begin expending Measure R funds on those projects to complete their construction within the accelerated schedule. No changes to the Highway Capital project dates are required to permit acceleration efforts because Measure R flexibly described their "Funds Available Beginning" dates as "To Be Determined ". Attached is a revised Expenditure Plan which presents the proposed amendments to the Transit Capital Subfund "Funds Available Beginning" dates needed to enable the proposed project acceleration. At the time the Board considers approval of this amendment, an accelerated project delivery schedule will also be presented for consideration. Written comments on this matter will be accepted through June 27, 2013. All comments should be addressed to Board Administration, Metro, One Gateway Plaza, Mail Stop 99 -3 -1, Los Angeles, CA 90012 -2952. Copies of the proposed Ordinance amendment and the Measure R Ordinance are available from Metro's Records Management Center at the LACMTA Plaza Level at (213) 922 -2342 and at www.metro.net. Last Revised: Monday May 20, 2013 For viewing MS Word, Powerpoint, and Excel documents - Download Adobe Acrobat Reader (free) or use Google Docs Reader (online) TRANSIT INFO: R 323.GO.METRO (323.466.3876) STAY CONNECTED: MR t IE]> <! [endifj - -> http: / /www. metro. net/ aboutlmeetingslboardlmeasure -r- public - meeting- 2013 - 0627 /agenda/ 06/04/2013 � • � C YY N N N M N N N N N N N M M M 7 • • N ti s we N M N Y M N M N N M N N N N M N N M N N N N N M N M N N N N C 6 N M N M N N M N N N M N N N N C ra o N N M N N N Y N C H �o n rEY•/a10 •• NN V N N r N N � � � n � N m � N m NNYfNJ4 Meamre R Piojed Firenee AmMeradon Plan Papa 9 i t § | § , 1, -R R | | | ! ..� | | | | | | ||�� ! ! |f � & 2 | | 2 | |� ! � ■ � E ! � 2 ; � �. � | � }■ \� ■ . � � � |� ■� -aa■ § ! 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