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Home My WebLink AboutAGENDA REPORT 2018 0815 CCSA REG ITEM 10JCITY OF MOORPARK, CALIFORNIA City Council Meeting of 8.15.2018 ACTION Adopted Resolution No. 2018-3735 BY M. Benson J. Consider a Resolution Opposing Proposition 6 which Would Eliminate SB 1 Funding for Transportation Projects Throughout the State. Staff Recommendation: Adopt Resolution No. 2018-____. Item: 10.J. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Brian Chong, Assistant to the City Manager DATE: 8/15/2018 Regular Meeting SUBJECT: Consider a Resolution Opposing Proposition 6, which Would Eliminate SB 1 Funding for Transportation Projects Throughout the State SUMMARY In 2017, the State of California adopted Senate Bill No. SB 1, which provides approximately $5 billion per year toward transportation projects throughout the state. As part of the June 2018 ballot, California voters approved Proposition 69, which added Constitutional protections to ensure these funds are used only for transportation purposes. Proposition 6 on the November 2018 ballot would eliminate SB 1 funding. It is recommended that the City Council adopt a resolution opposing Proposition 6. BACKGROUND AND DISCUSSION SB 1 Background On April 28, 2017, the Governor signed SB 1, the Road Repair and Accountability Act, into law. The bill provides an ongoing funding mechanism for transportation projects throughout California by raising the excise tax on gasoline, the excise tax on diesel, the sales tax on diesel, a Transportation Improvement Fee (tied to vehicle license fees), and a Road Improvement Fee for Zero-Emission Vehicles. The bill provides approximately $5 billion in annual funding for transportation projects throughout California. Prior to the bill’s passage, the City sent a Letter of Support for SB 1 to state legislators. A portion of the SB 1 funding is provided to the City for transportation projects. Staff estimates FY 2018-19 revenues of approximately $616,000 from SB 1 funding for transportation projects within the City. Item: 10.J. 175 Honorable City Council 8/15/2018 Regular Meeting Page 2 Proposition 69 Background Approved by California voters by an 81%-19% margin, Proposition 69 was passed as part of the June 15, 2018 ballot and inserted language in the California Constitution requiring that SB 1 funds be limited to spending on public streets, highways, and transportation systems. Enshrining these requirements in the Constitution makes it more difficult for future legislators to redirect these funds for purposes other than transportation projects. Prior to the June 2018 ballot, the City Council adopted resolution supporting Proposition 69. Proposition 6 If enacted, Proposition 6 would modify the California Constitution and repeal the funding provided by SB 1, and protected by Proposition 69, resulting in a loss of an estimated $52 billion in transportation revenues over the next ten years, including approximately $1,020,000 per year in new transportation revenues for the City of Moorpark. The City will continue to receive gas tax revenues based on taxes authorized prior to 2017. The City’s longstanding revenues have supported a project every three years. The SB 1 revenues are projected to support one Moorpark project every year. Proposition 6 would further require that any measures approved by the Legislature for subsequent fuel tax increases or that would affect the privilege of a resident of California to drive on the public highways will require a majority vote from the California electorate, rather than simply the Legislature and Governor. The attached resolution would affirm the City’s opposition to Proposition 6 and allow the City to be listed as a member of the No on Prop 6 coalition, a diverse coalition of local governments, public safety organizations, business leaders, labor leaders, environmental leaders, transportation advocates, and other organizations throughout the state. FISCAL IMPACT There is no fiscal impact associated with adopting a resolution of opposition to Proposition 6. However, the approval of Proposition 6 would reduce the City’s funding for transportation projects by approximately $1,020,000 per year. STAFF RECOMMENDATION Staff recommends that the City Council adopt a resolution opposing Proposition 6. Attachment 1 – Draft Resolution No. 2018-___ Attachment 2 – Proposition 6 Text 176 ATTACHMENT 1 RESOLUTION NO. 2018-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, OPPOSING PROPOSITION 6 ON THE NOVEMBER 2018 BALLOT 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 2016 California Statewide Local Streets and Roads Needs Assessment, which provides critical analysis and information on local transportation networks’ condition and funding needs, indicates that the condition of local transportation networks is deteriorating at an increasing rate; and WHEREAS, Moorpark is a newer City that has been able to rely on pavement preservation projects in the past but its aging roads will increasingly need more expensive resurfacing or reconstruction work in the future; and WHEREAS, California has more than 1,600 bridges and overpasses that are structurally deficient and unsafe; and WHEREAS, according to the National Highway Traffic Safety Association, there were more than 3,600 fatalities on California roads in 2016, with poor road conditions as a major factor in vehicle collisions and accidents; and WHEREAS, there is a statewide backlog of over $130 billion in needed road repairs, including $73 billion needed for local streets and roads; and WHEREAS, the “Road Repair and Accountability Act” of 2017 (SB 1) will raise $5 billion annually in long-term, dedicated transportation funding to make road safety improvements, fill potholes, and repair local streets, highways, bridges, and overpasses, with the revenues split equally between state and local government projects; and WHEREAS, the City supported the approval of SB 1; and WHEREAS, California voters passed Proposition 69 on the June 2018 ballot, by an 81%-19% margin, to add Constitutional protections ensuring SB 1 transportation funds can only be used for transportation purposes and making state and local governments accountable to taxpayers; and WHEREAS, Proposition 6 would eliminate an estimated $52 billion in existing transportation funding over the next ten years; and WHEREAS, Proposition 6 would stop funding for more than 6,500 transportation improvement projects currently underway or planned in every California community; and 177 Resolution No. 2018-____ Page 2 WHEREAS, Proposition 6 would jeopardize public safety by eliminating thousands of projects to fix unsafe bridges and overpasses, repair crumbling and unsafe roads, and enhance pedestrian safety; and WHEREAS, Proposition 6 would raid approximately $1,020,000 annually dedicated to the City of Moorpark and halt critical investments in future transportation improvement and maintenance projects. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of Moorpark hereby opposes Proposition 6 on the November 2018 ballot to repeal SB 1 transportation funding; and SECTION 2. The City of Moorpark can be listed as a member of the No on Prop 6 coalition, a diverse coalition of local governments, public safety organizations, business leaders, labor leaders, environmental leaders, transportation advocates, and other organizations throughout the state; and SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 15th day of August, 2018. __________________________________ Janice S. Parvin, Mayor ATTEST: ___________________________________ Maureen Benson, City Clerk 178 ATTACHMENT 2 Proposition 6 would add a Section 3.5 to Article XIII A of the California Constitution: Section 3.5 (a) Notwithstanding any other provision of law, the Legislature shall not impose, increase or extend any tax, as defined in section 3, on the sale, storage, use or consumption of motor vehicle gasoline or diesel fuel, or on the privilege of a resident of California to operate on the public highways a vehicle, or trailer coach, unless and until that proposed tax is submitted to the electorate and approved by a majority vote. (b) This section does not apply to taxes on motor vehicle gasoline or diesel fuel, or on the privilege of operating a vehicle or trailer coach at the rates that were in effect on January 1, 2017. Any increase in the rate of such taxes imposed after January 1, 2017 shall cease to be imposed unless and until approved by the electorate as required by this section. 179