Title
RESOLUTION NO. 2015-203 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA URGING THE STATE TO PROVIDE NEW SUSTAINABLE FUNDING FOR STATE AND LOCAL TRANSPORTATION INFRASTRUCTURE
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
Governor Edmund G. Brown, Jr. has called an Extraordinary Session on Transportation and Infrastructure to address the immense underfunding of California’s roads and highways. On July 16, 2015, the League of California Cities’ Board of Directors formally adopted a resolution urging Governor Jerry Brown and the legislature to provide new sustainable funding for state and local transportation infrastructure.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378(b)(4) of the State CEQA Guidelines because the proposal consists of a governmental fiscal activity which does not involve any commitment to any specific project, which may result in a potentially significant impact on the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA review. Although environmental review is not required at this time, once the scope of individual projects to be funded through this revenue source have been defined, environmental review will be required for each project and the appropriate environmental determination will be made.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
California’s network of roads and highways are critical to our quality of life and economy. However, the state lacks adequate funding to fix crumbling roads, highways, bridges and transportation infrastructure. The condition of the deteriorating network of roads is staggering:
• California’s crumbling roads cost motorists nearly $600 a year per driver for vehicle maintenance.
• California has the second highest share of roads in “poor condition” in the nation.
• 58% of state roads need rehabilitation or pavement maintenance.
• California has 6 of 10 cities with the worst road conditions in the nation.
• 55% of local bridges require rehabilitation or replacement.
• Nearly 70% of California’s urban roads and highways are congested.
• Without additional funding, 1/4 of local streets and roads will be in failed condition by 2024.
The state lacks adequate funding to address these critical deficiencies:
• Local streets and roads face an estimated shortfall of $78 billion in deferred maintenance and an annual shortfall of $7.8 billion.
• CalTrans faces a $59 billion backlog in deferred maintenance and an annual shortfall in the State Highway Operation and Protection Program (SHOPP) of $5.7 billion.
Governor Edmund G. Brown, Jr. has called an Extraordinary Session on Transportation and Infrastructure to address the immense underfunding of California’s roads and highways. Cities and counties own and operate more than 81% of streets and roads throughout the state and have participated in efforts to study unmet funding needs and potential solutions. The 2014 California Statewide Local Streets and Roads Needs Assessment, providing critical analysis and information on the local transportation network’s condition and funding needs, predicts at current funding levels continued significant decline of local streets and roads over the next ten years, deteriorating at a more rapid pace and requiring more costly rehabilitation and rebuilding rather than more cost-effective preventative maintenance.
On July 16, 2015, the League of California Cities’ Board of Directors formally adopted a resolution urging Governor Jerry Brown and the legislature to provide new sustainable funding for state and local transportation infrastructure. The League and many cities have been actively advocating this year for a significant investment in transportation infrastructure.
A broad coalition of cities, counties, labor, business, public safety and transportation advocates has formed to meet the Governor’s call to address California’s chronic transportation infrastructure funding shortfall. During the 2015 special session on transportation, the coalition supports the following priorities:
1. Make a significant investment in transportation infrastructure. Any package should seek to raise at least $6 billion annually and should remain in place for at least 10 years or until an alternative method of funding our transportation system is agreed upon.
2. Focus on maintaining and rehabilitating the current system. Repairing California’s streets and highways involves much more than fixing potholes. It requires major road pavement overlays, fixing unsafe bridges, providing safe access for bicyclists and pedestrians, replacing storm water culverts, as well as operational improvements that necessitate the construction of auxiliary lanes to relieve traffic congestion choke points and fixing design deficiencies that have created unsafe merging and other traffic hazards. Efforts to supply funding for transit in addition to funding for roads should also focus on fixing the system first.
3. Equal split between state and local projects. We support sharing revenue for roadway maintenance equally (50/50) between the state and cities and counties, given the equally-pressing funding needs of both systems, as well as the longstanding historical precedent for collecting transportation user fees through a centralized system and sharing the revenues across the entire network through direct subventions. Ensuring that funding to local governments is provided directly, without intermediaries, will accelerate project delivery and ensure maximum accountability.
4. Raise revenues across a broad range of options. Research by the California Alliance for Jobs and Transportation California shows that voters strongly support increased funding for transportation improvements. They are much more open to a package that spreads potential tax or fee increases across a broad range of options, including fuel taxes, license fees, and registration fees, rather than just one source. Additionally, any package should move California toward an all-users pay structure, in which everyone who benefits from the system contributes to maintaining it - from traditional gasoline-fueled vehicles, to new hybrids or electric vehicles, to commercial vehicles.
5. Invest a portion of diesel tax and/or cap & trade revenue to high-priority goods movement projects. While the focus of a transportation funding package should be on maintaining and rehabilitating the existing system, California has a critical need to upgrade the goods movement infrastructure that is essential to our economic well-being. Establishing a framework to make appropriate investments in major goods movement arteries can lay the groundwork for greater investments in the future that will also improve air quality and reduce greenhouse gas emissions.
6. Strong accountability requirements to protect the taxpayers’ investment. Voters and taxpayers must be assured that all transportation revenues are spent responsibly. Local governments are accustomed to employing transparent processes for selecting road maintenance projects aided by pavement management systems, as well as reporting on the expenditure of transportation funds through the State Controller’s Local Streets and Roads Annual Report.
7. Provide Consistent Annual Funding Levels. Under current statute, the annual gas tax adjustment by the Board of Equalization is creating extreme fluctuations in funding levels - a $900 million drop in this budget year alone. A transportation funding package should contain legislation that will create more consistent revenue projections and allow Caltrans and transportation agencies the certainty they need for longer term planning.
In light ongoing infrastructure needs, City staff recommends approval of the resolution supporting the effort to urge the state to find new funding for transportation infrastructure.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18705.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The action supports the Strong and Secure Neighborhood Strategy. The action helps finance the construction and upgrading of public infrastructure, which is a key City function in providing a safe and efficient roadway system for residents, businesses and visitors.
CURRENT YEAR FISCAL IMPACT
Approval of the resolution will result in no net fiscal impact to the City’s General Fund in the current fiscal year. If new funds are granted, staff will return to Council with a recommendation to appropriate said funds into the Capital Improvement Program (CIP) projects.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact at this time. The proposed legislation amendment will provide a more consistent revenue projection and allow Caltrans and local agencies the certainty they need for longer term planning. Upon completion of CIP projects, the improvements will require only routine City street maintenance. Since the improvements are anticipated to increase the life of the streets included, there should be a positive long term fiscal impact.
ATTACHMENTS
1. Resolution
Staff Contact: Francisco X. Rivera P.E., T.E.