02-05-2002 - Adoption of a Resolution Supporting Proposition 42 "The Transportation Congestion Improvement Act"City of West Covina
*Memorandum
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Artie Fields
Acting Finance Director
Shannon A. Yauchzee
Acting Public Works Director
AGENDA
ITEM NO. M-3
DATE February 5, 2002
SUBJECT: ADOPTION OF A RESOLUTION SUPPORTING PROPOSITION 42
"THE TRANSPORTATION CONGESTION IMPROVEMENT ACT"
SUMMARY: Proposition 42 will help continue making city roads safer and reduce traffic
without raising taxes. A coalition was formed by the League of California Cities
to support Proposition 42. It is desired that the City of West Covina extend its
support by the adoption of a resolution.
BACKGROUND:
Proposition 42, the Transportation Congestion Improvement Act, will be on the March 5, 2002
statewide ballot. Proposition 42 would continue the allocation of the existing State sales tax on
gasoline to cities and counties which goes into the General Fund. Twenty percent of these
revenues are earmarked for cities for local street repairs and maintenance. Twenty percent are
earmarked for county streets and maintenance. Twenty percent are provided to public transit
agencies and the remaining forty percent goes to the State Transportation Improvement Program
(STIP), which is primarily composed of locally identified projects.
Proposition 42 is an important measure for all cities and counties as it would provide a much
needed ongoing reliable source of funding for our streets, roads, and other local transportation
projects. Proposition 42 is especially important -now as many .local transportation sales tax
measures are set to expire over the next few years.
Besides the League of California Cities, many law enforcement associations, fire chiefs, public
safety officials, auto clubs, and others have joined this coalition to support a "Yes" vote on
Proposition 42 on the March 5, 2002 ballot.
DISCUSSION:
In 2000, the Transportation Congestion Relief Program (TCRP) was enacted in California.
Under this program, State gasoline sales tax revenues will be used from 2003-2004 through
2007-2008 for specified transportation purposes including highways, streets and roads, and
transit improvements. Thereafter, these revenues will be available for various State purposes.
Proposition 42 places in the State Constitution the provisions of the TCRP. In addition, the
measure requires that starting in 2008-2009, these revenues continue to be used for State and
local transportation purposes. These revenues would be allocated as follows:
• Twenty percent to public transportation
• Forty percent to transportation improvement projects funded in the State Transportation
Improvement Program
• Forty percent to local streets and roads improvements; with half of the amount (twenty
percent) allocated to counties and half to cities.
XAAGENDA - 2002\Adoption of Resolution Supporting Prop. 42.doc
•
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Andrew G. Pasmant, City Manager
and City Council
Page 2 — February 5, 2001
The measure authorizes the Legislature to modify this distribution of the revenues with a two-
thirds vote. The measure also provides that the use of these revenues for transportation
purposes can be suspended under specified conditions. The passage of Proposition 42 has
numerous advantages some of which are:
• Improve Highway, Bridge, and Street Safety
California's once safe and beautiful highways are now the third most deteriorated roadways
in the nation, and growing less safe by the day. More than 6,000 California bridges and
overpasses are structurally deficient or no longer meet highway safety or design standards.
Proposition 42 will provide desperately needed funds to help fix potholes and repair
dangerous roads, highways, bridges, intersections, and school routes — in every city and
county in the State.
• Speed Up Traffic Relief and Mass Transit Projects
Los Angeles has the most congested traffic in the country. San Francisco/Oakland is second,
San Diego sixth, and Sacramento, San Jose and San Bernardino/Riverside follow close
behind. Proposition 42 guarantees that gasoline sales taxes — taxes the City already pays —
will be used for transportation improvements. It will help speed up the delivery of planned
traffic relief projects on the highways and local roads, and expand local bus and commuter
services, such as Valley Transportation Authorities (VTA) in San Jose, Sacramento Light
Rail, San Francisco Municipal Railway (MUNI), Green and Blue Lines in Los Angeles, the
San Diego Trolley, 'BART, Caltrans, Capitol Corridor, Southern California's Metrolink,
ACE, and the Coaster in San Diego.
• Create Jobs and Stimulate the Economy
Speeding up transportation projects has the added benefit of creating thousands of new jobs
in construction, engineering, and related services — especially during these critical times.
Every dollar spent on highway improvements generates about six times that amount in
economic benefits.
.ALTERNATIVES:
The City may choose not to take a position or to oppose Proposition 42.
FISCAL IMPACT:
Under Proposition 42, cities will continue to collect their share of sales tax generated "at the
pump" as a General Fund Revenue. The State's share - of these funds would be deposited into a
Transportation Investment Fund beginning in 2003-2004. For the first five years (through 2007-
2008), the money could only be spent on State transportation projects. Starting .in 2008-2009,
twenty percent of these funds would be allocated to California cities for their transportation
projects: The City allocation would be based on population. Staff estimates that West Covina
would receive an additional $300,000.to $400,000 per year.
XAAGENDA - 2002\Adoption of Resolution Supporting Prop. 42.doc
r
Andrew G. Pasmant, City Manager
and City Council
Page 3 — Februml 5, 2001
RECOMMENDATION:
It is recommended that the City Council adopt the following resolution.
RESOLUTION NOA0—?-9 - A RESOLUTION OF THE CITY COUNCIL
.OF THE CITY OF WEST COVINA, CALIFORNIA, SUPPORTING THE
COALITION OF THE LEAGUE OF CALIFORNIA :CITIES AND
SUPPORTING YES ON PROPOSITION 42 — THE TRANSPORTATION
CONGESTION IMPROVEMENT ACT, ON THE MARCH 5, 2002
STATEWIDE BALLOT
Prepared by:
c 1
Nar . Palkhiwala
Acting City Engineer
Reviewed and approved by: Reviewed and approve by:
Shannon A. auchzee Artie ds
Acting Public Works Director Acting Finance Director
SAY:njp
Attachments — Resolution
List of Supporters
XAAGENDA - 2002\Adoption of Resolution Supporting Prop. 42.doc
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, SUPPORTING THE
COALITION OF THE LEAGUE OF CALIFORNIA CITIES AND
SUPPORTING YES ON PROPOSITION 42 — THE
TRANSPORTATION CONGESTION IMPROVEMENT ACT, ON
THE.MARCH 5, 2002 STATEWIDE BALLOT.
WHEREAS, Proposition 42 will help make city roads safer and reduce traffic
without higher taxes by requiring the gasoline sales taxes the City already pays to be used
to improve mass transit, highways, and local roads; and
WHEREAS, Proposition 42 is based on the principle that taxes paid at the gas
pump should be used for transportation purposes; and
WHEREAS, traffic is paralyzing travel with Los Angeles now ranked the number
one most congested urban area .in the county, San Francisco/Oakland second, San Diego
sixth and Sacramento, San Jose and San Bernardino/Riverside following close behind;
and
WHEREAS, with our neglected transportation system needing attention,
California has the third worst deteriorated roads in the nation and more than 6,000 of our
bridges and overpasses are structurally deficient or no longer meet highway safety or
design standards; and
WHEREAS, Proposition 42 will provide a stable and ongoing source of
transportation funding that will make it possible to plan for our future transportation
needs; and
WHEREAS, Proposition 42 will guarantee funds to every city and county to help
fix potholes, repair dangerous road conditions, and improve the safety of children
walking or biking to school; and
WHEREAS, Proposition 42 will help speed up highway safety and traffic relief
projects, and expand and improve mass transit systems; and
WHEREAS, all Proposition 42 projects will be subject to an annual audit and
standard accounting practices to ensure they are delivered on time and on budget; and
WHEREAS, by speeding up transportation projects thousands of new
construction jobs and other jobs will be created, our economy will be stimulated and
every dollar in our highways will result in almost six times that in economic benefits.
NOW THEREFORE, the City Council of the City of West Covina, California,
does hereby resolve as follows:
SECTION 1. The City Council of the City, of West Covina supports the passage
of Proposition 42 on the March 5, 2002 statewide ballot and supports the efforts of the
League of California Cities and the Coalition for "Yes" on Proposition 42.
SECTION 2. The City Clerk shall certify to the passage and adoption hereof
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City
Council this day of 2002.
Mayor
ATTEST:
City Clerk
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City
Council of the City of West Covina, California, at their regular meeting thereof held on
the 5th day.of February 2002, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
City Clerk
APPROVED AS TO FORM
City Attorney