DATE:
| 2/14/2017 | TO:
| HONORABLE MAYOR AND CITY COUNCIL | FROM:
| MINTZE CHENG, PUBLIC WORKS DIRECTOR | SUBJECT:
| ADOPT A RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND SEND LETTERS OF SUPPORT FOR SENATE BILL (SB)1 (BEALL) AND ASSEMBLY BILL (AB)1 (FRAZIER) |
On December 5, 2016, Senator Beall and Assembly Member Frazier introduced similar transportation funding proposals, under SB1 and AB1, respectively. Upon full implementation, each proposal will generate approximately $6 billion annually, with approximately $2.2 Billion going to local streets and Roads. Staff requests the City Council approve a resolution authorizing the Mayor to sign and send letters of support for each bill to the State Legislature.
BACKGROUND
The City of Union City currently has the second highest pavement condition index (PCIO in Alameda County.) The PCI is a measurement of the conditions of the streets through-out the City. Our PCI is 82 which equates to a very good pavement condition. In order to maintain the City’s local streets and roads to this condition, the City does approximately $2 million yearly in a combination of slurry seals and overlays of their roads. The City uses funds received from Measures B and BB; Allied Waste Funds and State Gas Tax funds to maintain our roadways. Unfortunately, the revenue received from the State Gas tax has been less with each passing year as people are driving more fuel efficient cars, hybrids or electric cars.
DISCUSSION
In order to help local governments, Senator Beall and Assembly Member Frazier have introduced transportation funding bill which would generate over $6 billion dollars in revenue annually with approximately $2.2 billion for local streets and roads. The League of Cities estimates that if the bills pass as they are currently proposed; Union City could receive up to $2.5 million per year when the program is fully funded. Both bills propose to raise funds by:
- $1.8 billion from a 12 cent increase to the gasoline excise tax, adjusted every three years for inflation
- $1.1 Billion from ending the Board of Equalization ”true up” and resetting the rate to the historic average of 17.3 cents per gallon, adjusted every 3 years for inflation.
- $1.3 billion from a $38 increase to the Vehicle Registration Fee, adjusted every three years for inflation
- $500 million from restoration of half the truck weight fee to transportation projects
- $600 million from a 20cent per gallon increase to the diesel excise tax, adjusted every three years for inflation
- $300 million from unallocated cap and trade funs
- $263 million from 3.5 percent increase to the diesel sales tax
- 60 million from miscellaneous transportation revenues
- $20 million from Vehicle Registration fee on Zero Emission Vehicles, stating in the 2nd year of ownership, adjusted every 3 years for inflation
While Union City is fortunate to have voters who approve Measure B and Measure BB to help fund our infrastructure, without the state funding our road conditions would worsen. It is critical that the State Gas Tax Fund be fixed so that our infrastructure does not fall into a state of disrepair. The California League of Cities is urging the local Cities to send in letters of support to Senator Beall and Assembly Member Frazier for SB 1 and AB 1 respectively.
FISCAL IMPACT
If a bill similar to SB 1 and AB is ultimately passed by the State Assembly and State Senate and approved by the governor, it is estimated that Union City could receive up to $2.5 million dollars annually to help fund maintenance of our local streets and roads.
RECOMMENDATION
It is recommended that the City Council approve a resolution authorizing the Mayor to sign and send letters of support for AB 1 and SB 1 to the State Legislature.
Prepared by:
Thomas E. Ruark, City Engineer
Submitted by:
Mintze Cheng, Public Works Director |