CC 2015-08-11_11b Resolution_Fix Our Roads Coalition
MEMORANDUM
TO: CITY COUNCIL
FROM: GEOFF ENGLISH, DIRECTOR OF PUBLIC WORKS
SUBJECT: CONSIDERATION OF A RESOLUTION URGING THE STATE TO
PROVIDE NEW SUSTAINABLE FUNDING FOR STATE AND LOCAL
TRANSPORTATION INFRASTRUCTURE AND CONSIDERATION OF
JOINING THE “FIX OUR ROADS COALITION”
DATE: AUGUST 11, 2015
RECOMMENDATION:
It is recommended the City Council adopt a Resolution urging the State to provide new
sustainable funding for state and local transportation infrastructure and join the “Fix Our
Roads Coalition” as requested by the League of California Cities.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no fiscal impact directly associated with this report, joining the Coalition and
adopting the Resolution.
BACKGROUND:
The City of Arroyo Grande (City) has relied on the League of California Cities (League)
to advocate on behalf of the City’s interests. As a result, when necessary, the City has
joined the League and other member cities to support or oppose proposed legislation
that impacts the delivery of municipal services to Arroyo Grande residents.
Following Governor Jerry Brown’s proclamation calling for a special session on
transportation and infrastructure, both the Senate and Assembly have held hearings to
discuss the current conditions of highways, streets, and roads as well as the current
funding structure. Local streets and roads received significant attention at both hearings.
In response to Governor Brown’s proclamation, the League’s Board of Directors formally
adopted a resolution urging the Governor and the legislature to provide new sustainable
funding for state and local transportation infrastructure. The League has been actively
lobbying this year for a significant investment in transportation infrastructure. With
approximately eight weeks until the legislature adjourns for the year, the League feels it is
time for the Legislature to act and is asking cities to engage in the process.
Item 11.b. - Page 1
CITY COUNCIL
CONSIDERATION OF A RESOLUTION URGING THE STATE TO PROVIDE NEW
SUSTAINABLE FUNDING FOR STATE AND LOCAL TRANSPORTATION
INFRASTRUCTURE
AUGUST 11, 2015
PAGE 2
ANALYSIS OF ISSUES:
The primary sources of revenue to maintain, repair and rehabilitate the City’s roads are
State and Federal gas tax. However, increasing fuel efficiency has resulted in vehicles
that are traveling more miles on less gas thus generating fewer gas tax dollars to repair
roads. In addition, a growing number of electric vehicles are in use and do not pay
gas tax for road maintenance. In the meantime, the impact of vehicle usage on
roadways continues.
The League is working with the “Fix our Roads Coalition” that includes labor and
business interests to support transportation infrastructure funding. The League is also
asking its member cities to pass a resolution urging sustainable funding and join the
“Fix our Roads Coalition” as soon as possible so that Legislators will have listed
support from their districts when they return from their summer recess on August 17th .
The League, in conjunction with the Coalition, supports the following seven principles
that staff hopes guides the legislative special session:
1. Make a significant investment in transportation infrastructure.
2. Focus on maintaining and rehabilitating the current system.
3. Invest a portion of diesel tax and/or cap & trade revenue to high-priority goods
movement projects.
4. Raise revenues across a broad range of options.
5. Equal split between state and local projects.
6. Strong accountability requirements to protect the taxpayers’ investment.
7. Provide consistent annual funding levels.
Note: The attached fact sheet explains the seven principles in detail.
According to the coalition, California has the second-highest share of roads in “poor-
condition” in the nation. Some 58% of State roads need rehabilitation or pavement
maintenance. In addition, the State has 6 of the 10 cities with the worst road
conditions in the nation. With ongoing congestion on nearly 70% of California’s
urban roads and highways, without additional funding, ¼ of local streets and roads
will be in failed condition by 2024. Lastly, the State lacks adequate funding to address
deficiencies in local streets and roads and faces an estimated annual shortfall of 7.8
billion in deferred maintenance.
City Infrastructure Projects
In no particular order, the following future City projects could be funded by a new
transportation funding package:
Resurfacing and reconstruction of streets and parking lots
Storm drains and drainage (curb and gutter) improvements
Item 11.b. - Page 2
CITY COUNCIL
CONSIDERATION OF A RESOLUTION URGING THE STATE TO PROVIDE NEW
SUSTAINABLE FUNDING FOR STATE AND LOCAL TRANSPORTATION
INFRASTRUCTURE
AUGUST 11, 2015
PAGE 3
ADA improvements along the street rights-of-way
Addressing roadway impairments for safe vehicle and bicycle usage
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Adopt the Resolution and join the coalition.
2. Adopt the Resolution with modifications.
3. Do not adopt the Resolution.
ADVANTAGES:
Support Resolutions and related advocacy efforts may have an impact to sway the
opinions of State Legislators to approve a potential long term funding mechanism that
may in turn provide funding to the City for on-going maintenance and repair of streets
and drainage infrastructure.
DISADVANTAGES:
The current funding proposed through the Fix our Roads Coalition does not include
funding for the State Transportation Improvement Program (STIP). The STIP is a multi-
year capital improvement program of transportation projects on and off the State
Highway System, that include new and capacity enhancing improvement projects. In
discussions with San Luis Obispo Council of Government (SLOCOG) staff last week,
they express an interest in advocating for an increase in STIP Program funding (i.e.
highway funding for NEW infrastructure) and not just focus on Fix It First type needs.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, August 6, 2015. The Agenda
and staff report were posted on the City’s website on Friday, August 7, 2015.
Attachments:
1. Fix our Roads Fact Sheet
2. Fix our Roads Coalition sign-up form
Item 11.b. - Page 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE URGING THE STATE TO
PROVIDE NEW SUSTAINABLE FUNDING FOR STATE
AND LOCAL TRANSPORTATION INFRASTRUCTURE
WHEREAS, Governor Edmund G. Brown, Jr. has called an extraordinary session to
address the immense underfunding of California’s transportation infrastructure; and
WHEREAS, cities and counties own and operate more that 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 City of Arroyo Grande has participated in efforts with the California
State Association of Counties, League of California Cities, and California’s Regional
Transportation Planning Agencies to study unmet funding needs for local roads and
bridges, including sidewalks and other essential components; and
WHEREAS, the resulting 2014 California Statewide Local Streets and Roads Needs
Assessment, which provides critical analysis and information on the local transportation
network’s condition and funding needs, indicates that the condition of the local
transportation network is deteriorating as predicted in the initial 2008 study; and
WHEREAS, the results show that California’s local streets and roads are on a path of
significant decline. On a scale of zero (failed) to 100 (excellent), the statewide average
pavement condition index (PCI) is 66, placing it in the “at risk” category where
pavements will begin to deteriorate much more rapidly and require rehabilitation or
rebuilding rather than more cost-effective preventative maintenance if funding is not
increased; and
WHEREAS, if funding remains at the current levels, in 10 years, 25 percent of local
streets and roads in California will be in “failed” condition; and
WHEREAS, cities and counties need an additional $1.7 billion just to maintain a status
quo pavement condition of 66, and much more revenue to operate the system with Best
Management Practices, which would reduce the total amount of funding needed for
maintenance in the future; and
WHEREAS, models show that an additional $3 billion annual investment in the local
streets and roads system is expected to improve pavement conditions statewide from
an average “at risk” condition to an average “good” condition; and
Item 11.b. - Page 4
RESOLUTION NO.
PAGE 2
WHEREAS, if additional funding isn’t secured now, it will cost taxpayers twice as much
to fix the local system in the future, as failure to act this year will increase unmet funding
needs for local transportation facilities by $11 billion in five years and $21 billion in ten
years; and
WHEREAS, modernizing the local street and road system provides well-paying
construction jobs and boosts local economies; and
WHEREAS, the local street and road system is also critical for farm to market needs,
interconnectivity, multimodal needs, and commerce; and
WHEREAS, police, fire, and emergency medical services all need safe reliable roads to
react quickly to emergency calls and a few minutes of delay can be a matter of life and
death; and
WHEREAS, maintaining and preserving the local street and road system in good
condition will reduce drive times and traffic congestion, improve bicycle safety, and
make the pedestrian experience safer and more appealing, which leads to reduced
vehicle emissions helping the State achieve its air quality and greenhouse gas
emissions reduction goals; and
WHEREAS, restoring roads before they fail also reduces construction time which
results in less air pollution from heavy equipment and less water pollution from site run-
off; and
WHEREAS, in addition to the local system, the state highway system needs an
additional $5.7 billion annually to address the state’s deferred maintenance; and
WHEREAS, in order to bring the local system back into a cost-effective condition, at
least $7.3 billion annually in new money going directly to cities and counties is needed;
and
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo
Grande strongly urges the Governor and Legislature to identify a sufficient and stable
funding source for local street and road and state highway maintenance and
rehabilitation to ensure the safe and efficient mobility of the traveling public and the
economic vitality of California.
Item 11.b. - Page 5
RESOLUTION NO.
PAGE 3
RESOLVED FURTHER, that the City of Arroyo Grande City Council strongly urges the
Governor and Legislature to adopt the following priorities for funding California’s streets
and roads.
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 finding 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.
Item 11.b. - Page 6
RESOLUTION NO.
PAGE 4
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 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 all Caltrans and
transportation agencies the certainty they need for longer term planning.
On motion of Council Member _________, seconded by Council Member _________,
and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this _____ day of _________, 2015.
Item 11.b. - Page 7
RESOLUTION NO.
PAGE 5
___________________________________
JIM HILL, MAYOR
ATTEST:
___________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
___________________________________
DIANNE THOMPSON, CITY MANAGER
APPROVED AS TO FORM:
_________________________________ __
HEATHER WHITHAM, CITY ATTORNEY
Item 11.b. - Page 8
Problem: California lacks adequate funding to fix
crumbling roads, highways, bridges and transportation
infrastructure.
California's network of roads and highways are critical to our quality oflife and
economy. Yet the condition of our deteriorating network of roads is staggering:
• Our 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% oflocal bridges require rehabilitation or replacement.
• Nearly 70% of California's urban roads and highways are congested.
• Without additional funding, 1/ 4 oflocal streets and roads will be in failed condition by 2024.
Our 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 $s.7billion.
Solution: A responsible, accountable solution to fix our roads.
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, we support the following priorities:
1. Make a significant invesbnent in transportation infrastructure.
If we are to make a meaningful dent that demonstrates tangible benefits to taxpayers and drivers, 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, among other
things, 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. 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.
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 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 hybrids, alternative fuel and or electric vehicles, to commercial vehicles. Our coalition supports:
ATTACHMENT 1
Item 11.b. - Page 9
• Reasonable increases in:
o Gasoline and diesel excise taxes.
o Vehicle registration and vehicle license fees.
• Dedicating a portion of the cap and trade revenue paid by motorists at the pump to
transportation projects that reduce greenhouse emissions.
• Ensuring existing transportation revenues are invested in transportation-related purposes (i.e.
truck weight fees and fuel taxes for off-road vehicles that are currently being diverted into the
general fund).
• User charge for electric and other non-fossil fuel powered vehicles that currently do not
contribute to road upkeep.
5. Equal split between state and local projects.
We support sharing revenue for roadway maintenance equally (50/50) between the state and cities and
counties. Funding to local governments should be provided directly (no intermediaries) to accelerate
projects and ensure maximum accountability.
6. Strong accountability requirements to protect the taxpayers' investment.
Voters and taxpayers must be assured that all transportation revenues are spent responsibly.
Authorizing legislation should:
• Constitutionally protect transportation revenues for transportation infrastructure only. Time
and again (Prop 42, 2002; Prop 1A, 2006; Prop 22, 2010), voters have overwhelmingly
supported dedicating and constitutionally protecting transportation dollars for those purposes.
We strongly support protections that prohibit using transportation dollars for other purposes.
• Repay existing transportation loans and end ongoing diversions of transportation revenues,
including approximately $850 million in loans to the general fund and the annual loss of
approximately $ i40 million in off-highway vehicle fuel taxes.
• Establish performance and accountability criteria to ensure efficient and effective use of all
funding. All tax dollars should be spent properly, and recipients of new revenues should be held
accountable to the taxpayers, whether at the state or local level. Counties and cities should
adopt project lists at public hearings and report annually to the State Controller's Office
regarding all transportation revenues and expenditures. Local governments should also
commit to ensuring any new revenues supplement revenues currently invested in
transportation projects. Both Caltrans and local governments can demonstrate and publicize
the benefits associated with new transportation investments.
• Caltrans reform and oversight. To increase Caltrans effectiveness, provide stronger oversight by
the state transportation commission of the programs funded by new revenues and establish an
Inspector General office to provide accountability. Reduce Caltrans administrative budgets
through efficiency reviews with all savings to be spent on road improvements.
• Expedite project delivery. More should be done to streamline project delivery, including but not
limited to:
o Establishing timelines for actions required by state agencies and eliminating other
permit delays.
o Increased implementation of alternative delivery systems that encourage more
investment from the private sector.
o Reforms to speed project completion.
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 $goo 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. While this
change would not provide any new revenue to transportation, it would provide greater certainty for
planning and project delivery purposes.
Item 11.b. - Page 10
I Support the Fix Our Roads Coalition
Principles for New Transportation Funding in
-the Legislative Special Session
~
Stable, Accountable Funding
D Yes, I/my organization support(s) efforts to secure new sources of
stable, accountable funding to fix California's highways and road infrastructure.
I/we sign-on to join the "Fix our Roads" coalition and in support of the following
principles that should guide the legislative special session on transportation.
1. Make a significant investment in transportation infrastructure.
2. Focus on maintaining and rehabilitating the current system.
3. Invest a portion of diesel tax and/or cap & trade revenue to high-priority
goods movement projects.
4. Raise revenues across a broad range of options.
5. Equal split between state and local projects.
6. Strong accountability requirements to protect the taxpayers' investment.
7. Provide consistent annual funding levels.
Please select a category: D Organization D Company D Elected official
Company or Organization Name
Name Title/ Occupation
Street address
City State Zip County
Phone number Fax number
E-mail Address
Signature (Required) Date
Email or fax this form to: acelesius@bcfpublicaffairs.com or 916-442-3510 (fax)
ATTACHMEMT 2
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Item 11.b. - Page 12