CC 2024-03-12_06c SLOCOG PresentationItem 6.c.
MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
SUBJECT: SLOCOG Presentation on Countywide Self-Help Measure
DATE: March 12, 2024
RECOMMENDATION:
Receive a presentation by the San Luis Obispo Council of Governments (SLOCOG) staff
regarding a potential Countywide Self-Help Sales Tax Measure, Draft Transportation
Investment Plan, and provide comments if desired.
BACKGROUND:
This item consists of a presentation by SLOCOG staff to the City Council regarding a
potential Countywide Self-Help Sales Tax Measure and related Draft Transportation
Investment Plan. This item is not a City-sponsored item and is not associated with the
City’s potential future ballot measure. Following this presentation, and if the SLOCOG
Board of Directors provides direction to proceed with the measure at their meeting on
May 1, 2024, SLOCOG staff will return to the City Council later in May to provide ano ther
opportunity for questions and feedback on the proposal to place a transportation sales
tax on the November ballot. However, this is the only opportunity for the City Council to
make/request changes to the Draft Transportation Investment Plan, as this document
would be finalized by the SLOCOG Board at their May 1, 2024, meeting.
If the City Council and/or other jurisdictions do not support the proposed sales tax
measure or Transportation Investment Plan, this could result in the SLOCOG Board or
County Board of Supervisors deciding not to place the self -help transportation sales tax
measure on the November 2024 ballot. However, this would not affect the City Council’s
ability to take action on an Arroyo Grande specific ballot measure in the future if th e City
Council determines to do so.
ATTACHMENTS:
1. Draft Local Road Repair and Transportation Safety Investment Plan
2. February 7, 2024 SLOCOG Board Staff Report on Regional Self -Help Measure
Page 6 of 134
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 3-5-24
LOCAL ROAD REPAIR
& TRANSPORTATION SAFETY
INVESTMENT PLAN SUMMARY
$700 M
Funded by a proposed half-cent sales tax, requiring two-
thirds voter-approval. Twenty-five counties throughout
California have passed similar measures, choosing
to fund transportation projects and infrastructure
improvements within their local communities. These
measures ensure that all funds raised stay local and
cannot be stolen by Sacramento. Enacting such a
measure would also return a fair-share of State and
Federal funds to San Luis Obispo County by qualifying
the region for an additional $900 million in competitive
grants.
20 YEARS
If placed on the ballot and approved by voters, the
proposed measure would ensure a dedicated, reliable
source of funding to address road repair and critical
safety needs for the next 20 years.
Total funding distributed by subregion
based on population, over 20 years
$100M, 14%
North Coast
Morro Bay,
Cambria,
Cayucos,
Los Osos
$154M, 22%
Central County
San Luis Obispo,
Avila Beach
$246M, 35%
North County
Atascadero, Paso Robles,
San Miguel, Creston, Santa
Margarita, Shandon,
Templeton
$200M, 29%
South County
Arroyo Grande, Grover
Beach, Pismo Beach,
Nipomo, Oceano 1includes 1% maximum administration fee,
unescalated for inflation
1
ATTACHMENT 1
Page 7 of 134
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 3-5-24
$162 M
66%
$84 M
34%
NORTH COUNTY PROJECTS
$246 M
Local Projects - 66%$162 M
Atascadero $49 M
• Road Repairs to El Camino Real, Traffic Way, Santa Lucia Road, & San Gabriel Road $30 M
• Community Road Safety & Congestion Improvements
°US 101 corridor congestion/safety improvements to overcrossings, intersections, interchanges,
signalization, ramps, parallel routes (San Anselmo Avenue and Santa Rosa Road)
°Local Road Safety Improvements, bridges, guardrails, road widening, pavement edge
improvements
°Safe Routes to School and trail & walkway connectivity
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$19 M
Paso Robles $52 M
• Road Repairs to Union Road, Paso Robles St., Creston Rd, Niblick Rd, Spring St, Commerce $30 M
• Community Road Safety & Congestion Improvements
°US 101 corridor congestion/safety improvements to overcrossings, intersections, interchanges,
signalization, ramps, parallel routes
-Highway 46E (US 101 to Jardine Rd.) safety improvements / Union Overcrossing
-Salinas River Trail & Eastside “Grand Loop” bikeway
-US 101 / Highway 46W interchange improvements
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$22 M
Local Projects
Regional Projects
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$70 M
$60 M
$50 M
$40 M
$30 M
$20 M
$10 M
Page 8 of 134
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 3-5-24
NORTH COUNTY PROJECTS
San Miguel
• Road Repairs and Safety Improvements to Mission St. Sidewalks
$9 M
Creston
• Safety improvements to Highway 41/Creston/La Panza intersection
$2 M
Santa Margarita/Garden Farms
• Downtown Safety Improvements to Highway 58
• Road Repairs and Safety Improvements
$6 M
Shandon
• Centre Street safety and revitalization
• Road Repairs, Paving, and Safety Improvements
$5 M
Templeton
• Road Repairs and Safety Improvements (Vineyard Dr. and others)
• Local Interchange improvements
$21 M
Other/Unincorporated $18 M
• Road Repairs and Safety Improvements for all North County Unincorporated areas $6 M
• Community Road Safety & Congestion Improvements
°US 101 corridor congestion/safety improvements to overcrossings, intersections, interchanges,
signalization, ramps, parallel routes
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$12 M
Regional Projects - 34%$84 M
Regional Road Safety Improvements
• Highway 46E (US 101 to Jardine Rd.) safety improvements, including Union Road intersection $30 M
• North County US 101 Regional Safety Corridor Improvements
°At US 101 Northbound off-ramp to Highway 46E
°Between Cuesta Grade and San Miguel, to address safety, mobility, and congestion issues (i.e.
lanes, interchanges, crossings, ramps, bus, vanpool, parallel routes)
$37 M
Mobility for All $17 M
• Public Transit for Seniors, Persons with Disabilities, and Veterans $7 M
• Active Transportation (Bicycle & Pedestrian)
°Templeton, Vineyard Drive improvements
°Salinas River/N. Anza Trail corridor
°Paso Robles River Trail/Grand Loop trail
°Atascadero Westside corridor
$10M
TOTAL $246 M*Dollar amounts shown in millions (M) reflect estimates from a half-cent sales tax generating $35M/year
for 20 years, unescaleted for inflation. Actual dollar amounts may fluctuate based on local retail sales and
inflation, but distributions are guaranteed as a relative percentage of total funds collected.
Page 9 of 134
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 3-5-24
$132 M
66%
$68 M
34%
SOUTH COUNTY PROJECTS
$200 M
Local Projects - 66%$132 M
Arroyo Grande $33 M
• Road Repairs to Grand, N. Oak Park, E. Branch, W. Branch, James Way, El Camino Real, Traffic Way $29 M
• Community Road Safety & Congestion Improvements
°US 101 corridor congestion/safety improvements to over/undercrossings, intersections,
interchanges, signalization, ramps, parallel routes in the Five Cities area
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$4 M
Grover Beach $24 M
• Road Repairs on Grand, Oak Park, 4th, El Camino Real, Farroll, The Pike, and other local streets $22 M
• Community Road Safety & Congestion Improvements
°Intersection improvements
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$2 M
Pismo Beach $16 M
• Road Repairs to Bello, Cypress, 4th, Five Cities, Price Canyon Rd., Hines $8 M
Local Projects
Regional Projects
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Page 10 of 134
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 3-5-24
SOUTH COUNTY PROJECTS
• Community Road Safety & Congestion Improvements
°US 101 corridor congestion/safety improvements to over/undercrossings, intersections,
interchanges, signalization, ramps, parallel routes in the Five Cities area
°Intersection improvements, Promenade maintenance/extensions
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$8 M
Nipomo
• Road Repairs and Safety Improvements to roads in Nipomo, Black Lake, Woodlands, Callender;
Tefft, Orchard, Thompson, and Pomeroy
• Local Interchange improvements
$24 M
Oceano
• Safe Routes to School, Beach Access
• Road Repairs, Sidewalks, and Safety Improvements to 4th, 13th, 17th, 22nd, Elm, Pier
$11 M
Other/Unincorporated $23 M
• Road Repairs to Halcyon, Price Canyon, Orcutt, Lopez; and Safety Improvements for all South
County Unincorporated areas
$12 M
• Community Road Safety & Congestion Improvements
°US 101 corridor congestion/safety improvements to overcrossings, intersections, interchanges,
signalization, ramps, parallel routes
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$11 M
Regional Projects - 34%$68 M
Regional Road Safety Improvements $50 M
• South County US 101 Regional Safety Corridor Improvements, between Shell Beach and the Santa
Maria River, to address safety, mobility, and congestion issues based on latest adopted plan (i.e.
lanes, interchanges, crossings, ramps, bus, vanpool, parallel routes, etc.)
Mobility for All $17 M
• Public Transit for Seniors, Persons with Disabilities, and Veterans $8 M
• Active Transportation (Bicycle & Pedestrian)
°Bob Jones, Coastal, and South Anza Trails
°Promenades & Boardwalks
$9M
TOTAL $200 M
*Dollar amounts shown in millions (M) reflect estimates from a half-cent sales tax generating $35M/year
for 20 years, unescaleted for inflation. Actual dollar amounts may fluctuate based on local retail sales and
inflation, but distributions are guaranteed as a relative percentage of total funds collected.
Page 11 of 134
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 3-5-24
$66 M
66%
$34 M
34%
NORTH COAST PROJECTS
$100 M
Local Projects - 66%$66 M
Morro Bay $21 M
• Road repairs, safety, and congestion improvements
°Pavement management program programs (i.e. Road Repair)
°Local Roadway Safety Plan implementation projects
°Embarcadero congestion improvements
°South Bay Blvd. climate adaptation roadway improvements
°Pedestrian Safety
°Bridges
°Public docks
°Tidelands park boat ramp
°Roadway striping
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
Cambria $10 M
• Road Repairs, Safety and Congestion Improvements to Burton, Ardath, Main, Windsor, Highway 1
Cayucos $4 M
• Road Repairs, Safety Improvements, and Downtown Improvements
Local Projects
Regional Projects
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$20 M
$15 M
$10 M
$5 M
Page 12 of 134
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 3-5-24
NORTH COAST PROJECTS
Los Osos
• Road Repairs, Safety Improvements, and Downtown Improvements identified in the Community
Plan, including 2nd Street revitalization and LOVR corridor multiuse path
$20 M
Other/Unincorporated $11 M
• Road Repairs and Safety Improvements for all North Coast Unincorporated areas $6 M
• Community Road Safety & Congestion Improvements
°Safe Routes to School
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$5 M
Regional Projects - 34%$34 M
Regional Road Safety Improvements $17 M
• Highway 1 Safety improvements (i.e., lanes, interchanges, crossings, ramps, bus, vanpool, parallel
routes, etc.)
• S. Bay Blvd. multimodal, capacity, and climate resiliency improvements
Mobility for All $17 M
• Public Transit for Seniors, Persons with Disabilities, and Veterans $8 M
• Active Transportation (Bicycle & Pedestrian)
°Coastal Trail
°Chorro Valley Trail
°Boardwalks
°Pedestrian/bicycle safety and operational improvements on Los Osos Valley Road between 9th
and Montana de Oro State Park
$9 M
TOTAL $100 M*Dollar amounts shown in millions (M) reflect estimates from a half-cent sales tax generating $35M/year
for 20 years, unescaleted for inflation. Actual dollar amounts may fluctuate based on local retail sales and
inflation, but distributions are guaranteed as a relative percentage of total funds collected.
Page 13 of 134
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 3-5-24
$102 M
66%
$52 M
34%
CENTRAL COUNTY PROJECTS
$154 M
Local Projects - 66%$102 M
San Luis Obispo $77 M
• Road Repairs to Los Osos Valley Road, Broad Street, Tank Farm $37 M
• Community Road Safety & Congestion Improvements
°East/West major roadway safety and mobility improvements (Tank Farm and South Street)
°Broad St. Safety Improvements (South St. to Buckley)
°Foothill Safety Improvements (Patricia to California)
°Intersection Safety Improvements (Foothill & Santa Rosa, California & Taft)
°Prado Road Improvements
°Local safety and intersection improvements
°Safe Routes to School (Laguna, CL Smith, Sinsheimer, and SLO High crossings)
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$40 M
Avila Beach $3 M
• Road Repairs and Safety Improvements
Local Projects
Regional Projects
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$70 M
$60 M
$50 M
$40 M
$30 M
$20 M
$10 M
Page 14 of 134
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 3-5-24
CENTRAL COUNTY PROJECTS
Other/Unincorporated $22 M
• Road Repairs and Safety Improvements for all Central County Unincorporated area (Orcutt,
Foothill, Buckley)
$10 M
• Community Road Safety & Congestion Improvements
°Los Osos Valley Road (Laguna Middle School to Foothill)
°Highway 227
°Intersection improvements at Los Osos Valley Road & Foothill
°Safe Routes to School (San Luis Bay Drive and Los Ranchos)
°Public Transit for Seniors, Persons with Disabilities, and Veterans
$12 M
Regional Projects - 34%$52 M
Regional Road Safety Improvements $30 M
• US 101 Regional Safety Corridor improvements, between Cuesta Grade and Avila Beach Dr. to
address safety, mobility, and congestion issues, based on the latest adopted plan (i.e. lanes,
interchanges, crossings, ramps, bus, vanpool, parallel routes, etc.)
• Highway 227 corridor safety and congestion improvements (between Tank Farm and Price Cyn)
Mobility for All $22 M
• Public Transportation, Senior Transportation, and Disabled Services $11 M
• Active Transportation (Bicycle & Pedestrian)
°Coastal Trail
°Chorro Valley Trail
°Bob Jones Trail
°Edna/Anza Trail
$11 M
TOTAL $154 M*Dollar amounts shown in millions (M) reflect estimates from a half-cent sales tax generating $35M/year
for 20 years, unescaleted for inflation. Actual dollar amounts may fluctuate based on local retail sales and
inflation, but distributions are guaranteed as a relative percentage of total funds collected.
Page 15 of 134
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 3-5-24
SAFEGUARDS IN THE PLAN
SAFEGUARDS
The Local Road Repair
& Transportation Safety
Investment Plan includes
strong taxpayer safeguards
to ensure that the projects
and programs approved by
the voters are funded and
delivered as promised.
Included in the plan:
• 20-year sunset date
• 1% administrative expense cap
• Independent Taxpayer Oversight Committee
• Annual independent audit and annual reporting
• Strategic implementation plan required to be
developed with local input groups
• No revenue generated shall be used to replace fair
share contribution from new development
• Requirements that funding be used to augment, and
not replace, local funds
All funding stays local and cannot be
stolen by Sacramento.
Page 16 of 134
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 3-5-24
SAFETY & RELIABILITY
Safety and reliability is critical to our transportation system’s function. The
Plan aims to reduce fatalities and serious injuries on our highways, streets,
and roads, while improving system reliability by focusing on operational
efficiency and resilency to environmental changes and natural disasters.
IMPROVED MOBILITY
Quality of life depends on our ability to access jobs, goods, and services.
The Plan will improve mobility by ensuring transportation to and from
places such as work, school, shopping centers and medical appointments
remains accessible & affordable for everyone living and working in the San
Luis Obispo County region.
TRAFFIC CONGESTION RELIEF
Traffic congestion increases travel times and has a harmful effect on air
quality. The Plan will improve travel times and preserve our air quality by
investing in transportation solutions that reduce traffic congestion across
our region.
GRANT LEVERAGE
Our region competes for grant funding with other California regions. Many
grants require applicants to provide local match money to win back State
and Federal funds through these grant programs. The Plan leverages
funding collected from this half-cent sales tax to return our fair-share of
State and Federal funds to the region. By securing funds locally through
The Plan, San Luis Obispo County and its cities qualify for an extra $900
million in competitive grants.
ECONOMIC VITALITY
Our region depends on goods movement, travel and tourism to support
our local economies. The Plan ensures our communities will continue to
prosper by securing funds for the transportation infrastructure that is
needed to balance economic growth and development.
BENEFITS OF THE PLAN
Page 17 of 134
LOCAL ROADS FIRSTSLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary
Draft 3-5-24
ABOUT THE PLAN
Ensures local funding
collected stays in local
communities
Guarantees funding
cannot be re-allocated to
other projects and must
be spent on improving
transportation
Creates jobs that will
support the maintenance
and improvement of
transportation infrastructure
in San Luis Obispo County, its
cities and communities
Brings more Federal and
State tax dollars back to
San Luis Obispo County
through competitive grant
programs
The San Luis Obispo County region will need $5.4 billion in transportation infrastructure over the next 23 years, but
only expects $3.1 billion in available funds. With a $2.3 billion projected deficit, basic transportation projects such as
fixing potholes, improving road safety, and reducing traffic congestion cannot be implemented.
The Local Road Repair & Transportation Safety Investment Plan would add a half-percent sales tax to every dollar
spent within the region, generating $700 million over 20 years (unescalated for inflation). Funding would be
allocated to each subregion based on its population and be required to stay local, with a minimum of 99% going
to improve transportation infrastructure and safety. In addition, jobs would be created, public transit would be
improved, and tourists would pay for the roads they use.
LEARN MORE AT LOCALROADSFIRST.COM
Page 18 of 134
F-2-1
SAN LUIS OBISPO COUNCIL OF GOVERNMENTS
STAFF REPORT
MEETING DATE: FEBRUARY 7, 2024 ITEM F-2
SUBJECT
Staff Contact:
Supplemental Funding Update: Draft Investment Plan, Engagement
Results, and Next Steps
James Worthley
SUMMARY
Transportation funding for future infrastructure falls well short of the need. A dedicated, local
transportation sales tax is an invaluable tool that 25 California county transportation authorities use to
deliver timely, cost-efficient transportation improvements to their communities. Adding San Luis
Obispo County to the list of California’s self-help counties would help unlock hundreds of millions of
dollars in additional transportation funding, guaranteeing, and delivering much-needed transportation
improvements and repairs for our residents and to our communities.
A two-thirds vote is a challenging threshold. Successful Investment Plans contain funding distributions
and investments that are grounded in polling results, focus groups, and stakeholder input. The desired
result is an equitable distribution of investments with a wide-range of investments to address multiple
concerns. The member agencies must come together to identify a distribution of funds and
investments that is fair and understandable by the voters.
A San Luis Obispo regional, ½ cent sales tax for transportation would:
Generate $35M annually, escalating each year (or $700M over 20 years without escalations)
Reclaim $0.8M to $1M, annually, from State funds
Collect a $3M to $5M one-time windfall from State funds
Qualify the region to receive our fair-share of State and Federal funds
RECOMMENDATIONS
Staff: 1) Receive and Comment
2)Adopt Distribution Formulas
3)Direct Staff to Present Draft Investment Plan to Member Agencies and Seek Comments
and Feedback and Proceed with Development/Refinement of Draft Materials
4)Amend Consultant Contract to Extend the Polling Contract (No increased funding)
5)Direct Staff to Return on May 1 for SLOCOG Board Determination of Next Steps.
TTAC: Support Staff Recommendation.
CTAC: Support Staff Recommendation.
SSTAC: Support Staff Recommendation.
City Managers: Reviewed/Supported the Distribution Formulas
DISCUSSION
To have a reasonable chance of passage by 2/3rd of voters, a measure must focus on the projects and
improvements that voters identify as their priorities and be accompanied by robust community and
leader engagement, education, and communication to raise awareness of the region’s transportation
challenges and build community consensus around a proposal. Staff worked with its consultants,
gained input from community groups/organizations, responded to media inquiries and interviews, and
hosted a website with information and a survey to gain input from the public.
Benefits of a Dedicated Transportation Sales Tax
Transportation investments improve the region’s: safety, reliability, mobility, goods movement, and
economic vitality; and a sales tax is paid by all users of the transportation system, including tourists.
Regions (self-help counties) with more local funding have a competitive advantage: they are better able
to build and maintain infrastructure and services, recapture competitive funds (our paid taxes), and have
more flexibility to build partnerships and prepare for new technologies and future challenges.
ATTACHMENT 2
Page 19 of 134
F-2-2
Our jurisdictions require new funds to repair our roadways, to deliver regional improvements, to
improve transportation overall, and to offer as a match in order to capture competitive State or Federal
funds. Higher funding leverages or ‘wins’ more funds from Sacramento. Without our own dedicated
transportation sales tax, we are effectively providing a ‘tax holiday’ to our tourists that come from the
25 counties with it.
Ability to Leverage
Comparing one investment category (Active Transportation), Santa Cruz recently ‘won’ $147m from
Sacramento using their 2016 sales tax measure funds. The Santa Cruz region has another $53m
remaining in measure funds to use as leverage for more Active Transportation grants. In comparison,
SLOCOG’s long range plan projects $184m for Active Transportation in our region between 2023 and
2045. Monterey will spend $600m from their 2016 measure funds on road maintenance and
improvements in the coming decades. This is on top of their local jurisdictions’ annual investments and
state or federal allotments, and they will use some of it to leverage or ‘win’ State and Federal funds,
outpacing our region.
With the failure of Measure J in 2016, the region lost out on over $180M in the last 6 years and this
could have easily doubled by capturing grants and competitive funds returned to the region. The
impact of a dedicated transportation sales tax for successful measure counties is evident. Those
counties deliver more projects and investments, faster, and at a lower cost.
Shrinking Fuel Tax
Reliant on the fuel tax, locally, we have a funding problem. Most of our jurisdictions have pavement
conditions that are too low which cost more to maintain at a low level than to maintain at a ‘very good’
level and do not have a path to reach it. Our primary artery, U.S. 101 has recurring congestion in South
County and emerging congestion in North County and we do not have the funding necessary to
address its existing or emerging congestion or safety issues.
The Insufficient Status Quo
The region’s current funding path relies not only on stable state and federal fund sources but also
aspires to win competitive state and federal transportation grants. Every two years, SLOCOG
programs its formula allotment of state and federal transportation funds. In January, the SLOCOG
Board approved the 2024 RTIP, a five-year capital investment program (FY 24/25 through FY 28/29).
The investment portfolio contains past and present funding secured and allotted by State and Federal
sources. SLOCOG received $33.9M (new funding) to program in the outer years. Half of this amount
was to address cost increases on six projects that were either “fully funded” in the 2020 fund cycle or
realized project-cost increases. In order to complete all 20 projects (only 7 are now fully funded),
$298M is still needed to close the shortfall This equates to 17+years based on status quo funding
($34M every two years) without State and/or federal grants or any additional project cost increases.
Projects are Cheaper Now than Tomorrow
Regions with a sales tax have a significant advantage over those without. When their new
improvements are ‘fully funded’ but run into unexpected project escalations or inflation, these regions
can use sales tax revenues to close the gap rather than losing the project (sometimes grant funded)
or delaying for several months or years to await additional funding (and incurring further cost
escalations). All regions are susceptible to State budget cuts (i.e., the 2024 proposed 50% cut to
REAP funding in the State) but measure counties are better equipped to backfill and deliver
improvements in spite of the state cuts.
We are Better Together
Setting aside our own self-interests can be challenging, but a regional approach helps to build the
infrastructure for today and the next generation. There is a holistic benefit of a regional measure. City
measures collect and spend only within their borders, yet, our residents travel beyond the singular
bubbles of each city, whether for commuting, shopping, or entertainment. We all do better when
everyone does better. An increase of transportation funding across the region provides benefits (safety,
access, mobility, cost-savings, etc.) to each individual, community, and jurisdiction. With both local needs
and regional needs, collaboration and coordination would be a key aspect if both a regional measure
and a local measure were on the same ballot.
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Draft Local Roads Repair & Transportation Safety Investment Plan: Attachment 1
The draft investment plan identifies how 20 years of collected, unescalated, revenues would be
allocated. Staff, working with its consultants and considering all feedback to date, developed a draft
(20-year, 1/2 cent sales tax) Investment Plan based on the following distribution premises.
1. Distribute all collected revenues by (4) subregions based on population. (i.e., 35% of the
population resides in the North County and 35% of the funds would be used in the North
County)
2. Within each subregion, distribute 66% of funds to its jurisdictions for Road Repairs &
Community Road Safety & Congestion Improvements based on relative population (with a
$3m increase to the four smallest cities).
a. Two Local Investment categories are: Road Repairs and Community Road Safety &
Congestion Improvements.
b. Respective investment levels are to be customized to the needs and priorities of each
city and community (pending City Council, staff, and public feedback.)
3. Within each subregion, distribute 34% of funds for Regional Road Safety & Congestion
Improvements and for Mobility for All.
a. Two Regional Investment categories are: Regional Road Safety Improvements and
Mobility for All (i.e., transit, senior services, and active transportation).
b. Regional Investment categories are to be customized to the needs of each subregion.
(pending additional feedback).
Staff reviewed various data metrics (including Population, Sales Taxes collected, Road miles, and
Employment by city and subregion) and various combinations with the City Managers in January 2024
and received concurrence for the previously described funding distribution methodology.
Key Questions for a Transportation Measure
1. Is there an unfunded need?
2. Is a dedicated transportation sales tax the best option?
3. Is it fair and understandable?
4. Does it improve your travel?
5. Is it protected?
6. Is it supportable?
1. Is there an unfunded need? Yes
Outreach and Engagement
SLOCOG staff engaged our community groups and organizations to give citizens the opportunity to
provide input to the needs of their communities. SLOCOG hosted four focus group meetings and
developed a website with a public survey. The message that ‘there are needs’ resounds at every level.
Engagement Meetings
Staff and SLOCOG’s Engagement Consultant were invited to present a 20-minute PowerPoint
discussion to 26 community groups and organizations over the past 6 months. In addition to these
presentations, staff, or the consultant, made a 3-minute comment at nine public meetings, engaged
with six media outlets garnering local press, and held four regional focus groups.
Focus Groups
In Fall 2023, four regional Focus Groups were held and facilitated by SLOCOG’s Consultant, MMKelly
Consulting. Staff used voter files to identify an ideal representation (political party, location, age (<25,
25-44, 45-65, 65+) and gender). Staff used a random selection tool to fill the categories until a
representative balance was achieved with confirmations of 12 members for each subregion’s focus
group. Each Focus Group was held and notes were drafted to include: General Views, Identified
Transportation Needs and Improvements, Funding Issues & Feedback, and Additional Insights. The
Consultant’s memo is Attachment 2.
Website
Staff developed and hosted its website, www.localroadsfirst.com and developed content to include
FAQs, meeting information, past projects completed by SLOCOG in each subregion, and developed
a simple online survey tool. Responses were collected (through November) and the following figures
show results, by subregion, of which investment type garnered the highest support. Investment types
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were ranked 1-10 and included: Improve Highways and
Interchanges; Improve Local Road Intersections; Repair Roads,
Potholes and Bridges; Build More Safe Routes to School and
Pedestrian Improvements; Extend Bike Lanes or Trails; Expand
Buses or Senior Transportation Options; and Safety Improvements. Additionally, an open-ended
question offered respondents to share what transportation improvements are needed (included as
Attachment 3). Results of this survey were shared and discussed with consultants.
Pavement Conditions Index (PCI)
A few jurisdictions are doing well, or making strides,
but most are not keeping up. A few examples are:
• Morro Bay’s PCI dropped 15 points in 2023.
• Atascadero’s 2022 Road Report identified its
PCI reached 49 (2 points higher than 2015)
with 25% of all roads rated as ‘Failed’ (16%
failed in 2015)
• For the San Luis Obispo County
unincorporated areas, the PCI was:
o 63 in 2013
o 64 in 2017
o 60 in 2020
o 60 in 2022
Fuel Taxes
Existing State and Federal funding are based
upon an antiquated system of cents per gallon of
fuel. The system predated the proliferation of
mileage improvements, hybrids, ethanol fuels,
and electric vehicles. The Federal gas tax has
had no adjustment in over 30 years. Further, 20%
of all new cars sold in CA in 2022 were electric
and this market share will grow. Fuel taxes have
not kept up and will only diminish over time. A
local solution is required to address our current
and future local problems to protect our quality of
life.
North County Survey Results
South County Survey Results
North Coast Survey Results
Central County Survey Results
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Volumes on US 101
U.S. 101 is our major artery, connecting six of our cities, and many unincorporated communities. Twice
in 25 years, SLOCOG has been fortunate to leverage State grants for its improvement. In the late
1990s a grant award funded Cuesta Grade to be widened and improved with truck climbing lanes with
construction completed in 2003. Two decades later, a new State grant was awarded to improve U.S.
101 in a four-mile section (southbound only) in the Shell Beach area. The Shell Beach Straits has long
been the most regularly congested and problematic section. However, over the past decade, volumes
on U.S. 101 have been growing in the North County with peak hour numbers higher than that in Shell
Beach. (See Figures below). In several sections, 2021 Peak Hour volumes match and surpass those
of 2019; 2022 volumes are not yet available.
5900 - 6400
9000 - 10200
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2. Is a dedicated transportation sales tax the best option? Yes.
The 2023 RTP examined potential funding sources specific for transportation, including – Fuel Tax,
Vehicle Fees, Impact Fees or VMT fees, Bonds, and others. For a single improvement, bonds (repaid
through income tax, local sales tax, local property tax, or other levied taxes) may offer a solution.
Bonds significantly impact those that currently (or in the future) reside near the improvement, but it
benefits everyone that uses it. A broader funding source is needed, that will not diminish over time
(fuel tax) and that is paid for by all those that benefit, including tourists. The unfunded needs are across
the region; the benefits of improvements would benefit all users and residents.
While the cents per gallon of fuel tax (for the State but not the nation) is indexed to inflation, EVs will
erode the total gallons purchased affecting the total tax collected. In tourist-attracting regions, sales
tax outperforms inflation. The
adjacent chart shows the
effects of inflation (orange
line) on our region’s sales tax
(of what a ½ cent raises)
originating in FY 09/10. The
blue line follows the actual
amount raised from a ½ cent
sales tax. From 2010 to 2020,
the region grew in population
by less than 5%; inflation
grew by 32%; sales taxes
nearly doubled.
Monterey county (region)
voters approved their sales
tax in 2016 and began
spending an additional $13M
annually (and growing) on
road repairs – above their
local, state, and federal allotments. Santa Cruz County (region) voters also approved their
transportation sales tax in 2016 and have successfully used it to leverage over $100M in 2022 from a
single State competitive pot. Our region is at a disadvantage to compete and capture State and
Federal grant funds without our own dedicated sales tax.
The 25 counties with their transportation sales tax annually receive a direct allocation from statewide
gas taxes. Annually, we lose out on this to a tune of $0.8M to $1M and cannot capture these funds.
Essentially, the State competitive system is rigged to reward those with a dedicated transportation tax,
and those regions without will continue to lose out and leave dollars on the table. Additionally, new
transportation-specific voter-approved measures receive a one-time share of a $20M set aside from
the State, up to $5M.
3. Is it Fair and Understandable? Yes.
The draft Investment Plan uses population percentages to distribute funds to each subregion –
guaranteeing each a fair-share amount. One complaint heard and lesson learned from Measure J in
2016 was the need to be clearly fair in the distribution of revenues and to make the distribution easily
understandable. Additionally, staff recognizes that ‘one size does not fit all’ and this is reflected within
the draft investment plan where subregions differ in investment areas of focus.
Our economy and quality of life are dependent on not only a good transportation system but one that
offers our residents and tourists options of travel. The transportation system benefits everyone:
residents, commuters, shoppers, recreationalists, drivers, bus riders, cyclists, pedestrians, and
tourists. State and federal transportation funding comes from a gas tax which is no longer a fair funding
mechanism. EV owners pay no gas tax; the fee they pay for roads is far lower than an average
vehicle’s gas tax and is regardless of total miles traveled. Hybrid owners pay roughly half of their
gasoline equivalents. All non-drivers benefit without paying a fuel tax. Tourists with gasoline and hybrid
vehicles pay a gas tax, however, revenues that are generated by the fuel tax are deposited to the
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State’s Highway and Users Tax Account (HUTA) and its distribution of formula funds are largely based
on population – which means our region receives the same proportion of fuel taxes whether we have
1,000 tourists or one million. 100% of a dedicated-transportation sales tax stays local for the
betterment of our system and be paid by all users of the transportation system, including tourists.
4. Does it improve your travel? Yes.
The draft investment plan guarantees a wide-range of investments for:
• Rural areas and urban areas
• Personal vehicle drivers, and cyclists, and bus riders
• School aged children and senior mobility needs
• Road repairs and betterments
• Local roads and highways
• Safety and congestion relief
• Economic progress, accessibility, and mobility improvements.
Through polling, surveys, engagement meetings, and focus groups the list of needs is long. The
investment plan includes many, but it cannot include all requests without sacrificing investments in
another mode, community, or category.
New funds through a dedicated sales tax would become an added piece of the larger funding picture.
Similar to other COGs, SLOCOG receives and invests over 20 state or federal revenue sources for
transportation. New funding grows the pie for all things transportation in all areas of the region.
5. Is it protected? Yes.
As a ‘Special Tax’ a dedicated sales tax differs from a ‘General Tax’. A special tax guarantees
transportation investments where voters want, need, and expect them; effectively taking away any bait
and switch actions or reprioritization by any future board or council. General taxes go into the local
general fund, can go for any purpose for a city or county, and are determined annually by the (then)
current elected officials. Voters must trust that general funds will be spent as they hoped, but every
two years an election may replace three-fifths of the governing body.
Special taxes – like a dedicated transportation tax – go solely to improve transportation and the voter
measure contains an Investment Plan that details exactly what and where the funds will go, and these
funds do not go into a general fund. Our draft Investment Plan is attached and if sent to and approved
by voters, distributions and expenditures would strictly adhere to it. Current and future elected officials,
and staff, must follow it for all expenditures and distributions.
On an annual basis, the 25 counties (our population is greater than 6 of these counties) -which
comprise 89% of the State’s population- have dedicated transportation sales taxes that collectively
raise more than the gas tax statewide. The San Luis Obispo region has less than 1% of the State’s
population; imposing or expecting change to transportation funding in Sacramento is pointless.
Our local funds would be required to be spent within our region – they cannot be borrowed, redirected,
or stolen by Sacramento. Some counties have had their dedicated transportation sales tax for decades
and voters have renewed these taxes (like in Santa Barbara) after realizing the benefits and
recognizing the promises made were kept, and the funds cannot be stolen.
A voter measure would include safeguards, including an independent citizens’ oversight committee,
a sunset date, annual independent audits and reporting, a 1% administrative cap, and requirements
for a local maintenance of effort and for new development. Safeguards would be drafted for review
and input at the May SLOCOG Board.
6. Is it supportable? By the SLOCOG Board, City Councils, Supervisors, and Voters (TBD)
At this point, the draft investment plan is ready for review, for comments, and for modifications. Staff
anticipates changes to occur to this draft investment plan over the coming months to improve it.
In 2016, Measure J received 66.3% support of voters. Transportation conditions and needs have not
improved notably and transportation funding faces its latest challenge of a growing share of EVs.
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Any future SLOCOG Measure would allow voters the final say on such a new tax; would increase their
voice; would require the necessitated 2/3rd approval; would include accountability and transparency
with no bait and switch; would have a sunset date; would have safeguards and be protected from
Sacramento; and would dedicate its funds to improve our transportation system only.
Additional Requirements and Restrictions
If February Board direction is to proceed with the development of draft materials, all components
(Ordinance, Safeguards, and Investment Plan) must be developed in time for the May 1st SLOCOG
Board meeting. The draft sections of an ordinance will include:
1. Draft Title: An ordinance providing for the imposition of a one-half of one percent retails
transactions and use tax by the San Luis Obispo County Local Transportation Authority for the
San Luis Obispo County and Cities Road Repair, Traffic Relief, and Transportation Safety.
2. Draft Compliance with CEQA: All projects funded with these transportation sales tax funds
will be required to complete appropriate California Environmental Quality Act (CEQA) and
other environmental review as required.
3. Draft Ballot Label: Draft 75-word ballot labels shall be further tested in upcoming polling:
The proposition to be placed may read as follows:
In order to repair and maintain local streets, highways, bridges, and infrastructure; fix
potholes; improve highway and roadway safety; provide safe routes to schools; reduce
traffic congestion; make pedestrian, bike, and transit improvements; and qualify for
900 million dollars in State and Federal grant funds; shall San Luis Obispo County’s
measure establishing a half cent sales tax for transportation improvements be
adopted, providing approximately 35 million dollars annually for 20 years that cannot
be taken by the State, with citizen oversight and all money locally-controlled?
4. Draft Investment Plan Amendments
a. To address changing population: In FY2032/33, amend local distribution categories
based on new population as determined by the 2030 Census. This would amend the four
subregions’ respective shares relative to each other and, within each subregion, the
respective shares of jurisdictions while maintaining the $3m increase to the 4 smallest
cities.
b. To address new or changed laws, requirements, technologies, or needed investments:
Amendments to the Plan would require a high threshold. No changes to the 66%:34%
(local:regional split) would be accepted. No changes to the relative share of the four
subregions or shares within each subregion (jurisdictional splits) with the exception of
the 2030 Census noted above. Any changes within the Local Investment category would
be allowed if supported by 2/3rd of the Independent Taxpayer Oversight Committee, a
2/3 approval by the Authority, AND majority-vote approvals from a majority of the city
councils constituting a majority of the incorporated population, AND majority vote of the
Board of Supervisors. Any changes within the Regional Investment category – while
maintaining the promised share of funds within each subregion -- would be allowed if
supported by 2/3rd of the Independent Taxpayer Oversight Committee, and a 2/3
approval by the Authority by a roll call vote, with prior notice (30-day) provided to all
jurisdictions.
5. Draft Cooperative Fund Agreements: To maximize the effective use of funds, revenues may
be transferred or exchanged between or among jurisdictions. Jurisdictions receiving funds
may, by annual or multi-year agreement, exchange funds provided that the percentage of
funds allocated as provided in the Investment Plan is maintained over the duration of the period
of time the tax is imposed.
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6. Support for Local Job Creation and Contracts
7. Eligible Uses of Categories: Investment categories are still undergoing refinement, but staff
recommends that the following be applied:
Local Investments
Road Repairs:
• Potholes, repaving, repair, and maintenance,
• Maintaining, improving, or constructing streets, roads, bridges, and bicycle and
pedestrian facilities (including maintenance of public docks),
• Safety Improvements,
• Storm damage repair to transportation facilities,
• Roadway drainage facilities,
• Traffic signal coordination, intersection and channelization,
• Traffic management,
• Landscaping Maintenance,
• And other transportation purposes as allowable under the Surface Transportation
Program.
Community Road Safety & Congestion Improvements:
• Community Enhancements, such as downtown streetscapes, transportation
enhancements, way finding, and accessibility improvements, street lighting, street
furniture and trees
• Safety Improvements,
• Bus and rail transit services and support facilities,
• Programs that reduce transportation demand,
• Reduced transit fares for seniors, veterans, students, and persons with disabilities,
• Education and incentives designed to reduce single occupant auto trips,
• Downtown streetscapes and transportation enhancements, multiuse paths, sidewalks,
Safe Routes to School, and ADA improvements.
• And other transportation purposes as allowable under the Surface Transportation
Program.
Regional Investments
Regional Road Safety Improvements ($ and % varies by subregional needs)
• Highways and Major Roadway improvements for: safety, congestion-relief, and
mobility improvements. (i.e., US 101 Northbound offramp to Highway 46E)
Mobility for All ($ and % varies by subregional needs)
• Public Transit investments (Seniors, Persons with Disabilities, Veterans, Fixed Route,
etc.)
• Active Transportation (Bicycle and Pedestrian improvements on regional trail
corridors, Boardwalks, Promenades, etc.)
Budget and Next Steps
Budget
The effort remains within the scope of the adopted FY 23/24 budget.
Polling
A new statistically valid poll (phone, cell, text, internet) is funded to occur in March with results to
follow. True North Research will perform a full-size tracking poll, expecting over 900 responses using
a statistically valid methodology. This poll will test success of recent public engagement efforts and
public concern about transportation and awareness of needs; test support for transportation-related
issues and quality of life investments; test support for a new tax, and related issues, such as taxpayer
safeguards; and assess support for overall goals of a local sales tax plan. Staff, working with city
managers, aim to add a question that also tests compatibility of regional and local measures. Top lines
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will be produced and presented to the SLOCOG Board and a final report prepared. A contract
amendment (attached) is necessary to extend the existing contract.
Engagement and Outreach
Staff will continue engagement with interested groups and organizations with the draft Investment
Plan. (February – April). All engagement efforts will remain within the current budget.
Revised Investment Plan
Following meetings in February – April, and coupled with new polling results, staff will make necessary
revisions to the draft Investment Plan and present changes to the SLOCOG Board on May 1st for the
determination of the next step. Staff will also present draft ordinance language for review and
comment.
Public Meetings: Review and Comment
March 11 City Council Meeting –Grover Beach
March 12 City Council Meeting –Arroyo Grande
March 19 City Council Meeting –San Luis Obispo
April 9 City Council Meeting –Atascadero
TBD City Council Meeting –Morro Bay
TBD City Council Meeting –Paso Robles
TBD City Council Meeting –Pismo Beach
April 9 Board of Supervisors Meeting
May 1 SLOCOG Board Meeting – Approve/Deny Investment Plan; Review Polling results
ATTACHMENTS
1. Draft Local Road Repair & Transportation Safety Investment Plan
2. Focus Group Summary Memo from MMK Consulting
3. Survey Responses: Open Ended (North County, North Coast, Central County, South County)
4. Contract Amendment #2 with True North Research
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