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HomeMy WebLinkAbout11/7/2001 - STAFF REPORTS (21) DATE: November 7, 2001 TO: City Council FROM: Assistant City Manager-Administration SUBJECT: Traffic Congestion Relief Act Initiative RECOMMENDATION: That the City Council consider adopting the attached proposed Resolution addressing support forthe Planning and Conservation League's Traffic Congestion Relief Act Initiative. SUMMARY: City Council is being asked to consider adopting a resolution of support for the Traffic Congestion Relief Act Initiative being proposed as a state-wide effort to allocate 30% of the state's share of sales tax on sales of new or used cars and trucks to transportation improvements. BACKGROUND: In mid-September 2001, City Manager David Ready received a letter from Mr. Rob Parkins requesting an appearance before the Mayor and Council to seek Council's support for the Traffic Congestion Relief Act Initiative proposed by the Planning and Conservation League as a statewide effort. If adopted, the Act would provide the funding mechanism to initiate and support the inter-city rail system between Los Angeles and the Coachella Valley. Mr. Parkins made a presentation to the City Council at its Study Session on October 31, 2001. Attached is information about the proposed Traffic Congestion Relief Act Initiative, as well as a proposed Resolution supporting the effort, should Council so desire. Dallas J. Flicek, Assistant City Manager-Administration APPROVED City Manager ` Attachments: 1. Information on Initiative 2. Proposed Resolution Ad Planning and Co.../PCLF - Maintaining and Strengthening Environmental Laws in Califomi Page 1 of 3 Transportation • Legislation •Transportation TR??VFI;C CONGESTION • Smart Growth s RELIEF ACT. INITIAH. CEOAWorkshoos • California Environmental NewsQUESTIONS AND ANSWERS •ZEVs s Air_Quality • Environmental What does the Traffic Congestion Relief Act do? Jobs • Natural The Traffic Congestion Relief Act (TCRA) allocates 30% of Resources the state sales tax on motor vehicles (cars and trucks) to • Electronic transportation improvements. Activism • Publications & What is the Traffic Congestion Relief Act's main purpose? Newsletters •About PCL & The purpose of the TCRA is to provide PCL Foundation safer, more convenient transportation • Join PCL alternatives in the face of increased traffic • contact us congestion in California. Under current • Eco-links local government road-building and transit plans, traffic congestion is projected to get worse by up to 500% around our state over the next 20 years, even after all presently planned new highway projects are built. The TCRA invests in fixing roadway congestion bottlenecks and in creating new transportation services that will be less congested, safer, more convenient, and cleaner. Why do we need to set-aside these funds for transportation purposes? The costs of building and maintaining our current transportation system has outstripped gasoline tax revenues, and further expansions will be even more expensive. We need to invest a relatively modest new amount (less than 1% of the state budget) in creating a modern, multi-modal system that will get people to where they want to go more quickly. Our quality of life and future economic growth depend on updating and upgrading our transportation infrastructure to give people choices of several convenient ways to reach work, school, famiiy and shopping destinations. '104,2 http://www.pel.org/transportation/questions.html 10/30/2001 Planning and Co.../PCLF -Maintaining and Strengthening Envirornnental Laws in Californi Page 2 of 3 How is this plan different from existing transportation spending? This plan supplements existing transportation plans by placing a new emphasis transportation systems that are less susceptible to gridlock. This plan is comprehensive: it includes major intersection upgrades in urban areas, transportation for seniors and disabled people, and programs to reduce air and water pollution created by cars and roads. This plan emphasizes safety by eliminating traffic bottlenecks and upgrading school buses that do not meet safety regulations. How will this plan impact the state budget? This plan will increase spending on transportation capital and operating by about $810 million per year. That is less than 1% of the current state budget. Funding for the plan would come only out of general fund growth, so no existing government services will be impacted. In the event of a recession, the plan will be scaled back, so that it does not take more than its share of the budget. In extreme financial crisis, the entire plan could be suspended, and re-allocated to higher priorities. Also, by reducing air and water pollution, the initiative will reduce health care and other costs. A recent study indicates that one dollar expended for air quality improvements results in as much as $15 in health care cost savings. Will the measure harm education funding? The bill includes language that protects local K-14 schools from any impact. There will be absolutely no impact on "Proposition 98" education funding. It will continue as if the measure had not been implemented. Will the legislation affect local government funding? Local governments currently receive part of the sales tax, and state government receives the rest. This legislation dedicates funds only from the state share of the sales tax, without touching the local government share. In fact, most of the new transportation funds will go to local government for 44 *43 http://www.pel.org/transportation/questions.html 10/30/2001 Planning and Co.../PCLF -Maintaining and Strengthening Environmental Laws in Californi Page 3 of 3 transportation purposes. State funding for cities will actually increase as a result of the initiative. What assurances are there that the program will be carried out properly? This legislation requires an annual financial audit to prevent fraud and waste and it includes a citizen oversight board to oversee funding decisions. Also, only two percent of the entire program can be spent on administration. The measure does not allow the Legislature to amend the program. Thus, we protect the state's financial health, but prevent "pork barrel" politics. Why don't we simply raise taxes to pay for this program, instead of using existing state sales tax revenues? Almost no one wants new fees or taxes at the state level, even to tackle traffic congestion. Business groups, taxpayers, and the Legislature and Governor oppose new taxes. However, people already pay a significant amount of sales tax whenever we buy a car or truck. This is an existing transportation-related tax. Making sure these funds are spent for new transportation projects is a fair way to meet increasing transportation needs without a tax increase. Why are the funds allocated by category, instead of letting local governments simply award them to local projects? The public wants to know what kinds of specific investments will be built. The promise to the public is that this plan will start to create a better, more efficient system, and the different categories of funding are our best guarantee. Will all regions of the state benefit? Yes. Existing statutes which fairly allocate transportation funds to each region of the state are maintained, assuring that every region, including those in rural areas, will benefit. (08-22-01) http://www.pcl.org/transportation/questions.html 10/30/2001 Planning and Co.../PCLF -Maintaining and Strengthening Environmental Laws in Californi Page 1 of 2 Transportation • Legislation. •Transportation TRAFFIC 0t7NtaESTIC7f J; • Smart a I,ELIEF r4CT. INITIFtTIVE CEQA Workshops • California Environmental News TRAFFIC CONGESTION RELIEF ACT FUNDING •ZEVs & Air,Quality Environmental The Traffic Congestion Relief Act (TCRA) would allocate 30% •Jobs of the state's share of sales taxes collected on motor vehicle • Natural sales, or about $870 million per year, to transportation Resources purposes. • Electronic Activism • Publications & Local Congestion Relief/ % of News Qualityof Life Funds letters Part of 870 million •About PCL& PCL Foundation Join-PCL Congestion Bottleneck H • Contactus Projects $139 million/year • Eco-links transit Capital 17% $183 million/year Rail safety/maintenance/ 4% $35 million/year improvements ransit Oriented Development 3% $26 million/year Incentives ransit Operations 16% $139 million/year Senior/Dial-a-Ride 2% $17 million/year Rail/Street Grade Separations F40/o]$35 million/year Bicycle/Pedestrian 4% $35 millionlyear Infrastructure & Safety Safe/clean school bus 80/0 $70 million/year Rural public transit F2%]$17 million/year http://www.pel.org/transportation/categories.htmi 10/30/2001 Planning and Co.../PCLF -Maintaining and Strengthening Environmental Laws in Californi Page 2 of 2 i lui � raffic Safety Improvements 5% $44 million/year Improving Intercity Travel �H� Intercity Rail 4% $35 million/year Capital/Operations Environmental Responsibility & Improvement Water Quality Transportation 2% $17 million/year Enhancements it Quality Transportation F % Grants )26 million/year Environmental �H�$87 million/year Enhancements/Mitigations Total: 1 100% $870 million/year* (10-23-01) /64 G http://www.pel.org/transportation/categories.html 10/30/2001 RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, IN SUPPORT OF THE PLANNING AND CONSERVATION LEAGUE TRAFFIC CONGESTION RELIEF ACT INITIATIVE. ------------- WHEREAS, the City of Palm Springs has a demonstrated interest in preserving Air Quality through reduced vehicle emissions; and WHEREAS, the provision of an alterative form of transportation that would lead to the reduction of vehicle travel contributes to this objective; and WHEREAS, as a member City of CVAG, the City of Palm Springs received the "Coachella Valley Passenger Rail Feasibility Study" in February 1999, wherein it was determined that rail transportation from Los Angeles to the Coachella Valley was feasible; and WHEREAS, the Planning and Conservation League is proposing a state-wide initiative that contains a provision for funding intercity passenger rail service from Los Angeles to the Coachella Valley to reduce traffic congestion on Interstate 10, if there is sufficient interest and support for such a project in the Coachella Valley; and WHEREAS, the Planning and Conservation League's Initiative proposes to accomplish this objective without imposing any new taxes through an allocation of 30% of the state share of the sales tax on new or used cars and trucks. NOW, THEREFORE, does the City of Palm Springs, through its Mayor and City Council resolve to support the Planning and Conservation League's inclusion of a means to cause intercity passenger rail service from Los Angeles to the Coachella Valley incorporated within the Initiative for November 2002, and asks all citizens of this great City to join in such support. ADOPTED this day of , 2001. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk Manager REVIEWED &APPROVED AS TO FORM /146