sr-032409-13h13-H
March 24, 2009
Council Meeting: March 24, 2009 Santa Monica, California
CITY CLERK'S OFFICE -MEMORANDUM
To: City Council
From: Mayor Pro Tem O'Connor, Councilmembers Bloom and McKeown
Date: March 24, 2009
Request of Mayor Pro Tempore Pam O'Connor, Council members Richard Bloom and
Kevin McKeown that Council support AB 20-Third Extraordinary Session that would
increase the local share of the Federal Transportation Economic Stimulus Funds. This
measure will apply a formula to the state funds which will ensure Los Angeles County
receives a fair share of funding from the American Recovery and Reinvestment Act
(ARRA). This will allow Metro to allocate an additional $100 million to the cities in Los
Angeles County for ARRA qualified projects. The Metro Board approved allocating
$215 million in ARRA funds to the cities without the legislation and $315 would go to
cities with the legislation.
The measure also sets aside funds for bond projects which have been stalled due to
the state budget deficit such as the I-405 HOV lane.
13-H
March 24, 2009
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Substantive
2009-IU THIRD EaTRAURDINARY SESS[ON
AMENDMENTS TO ASSEMBLY BILL N0. 20
AS AMENDED IN ASSEMBLI' JANUARY 7, 2009
Amendment 1
In line 1 of the heading, strike out "Evans" and insert:
Bass
Amendmen( 2
Strike out line I of the title, and insert-.
An act to add Atticle l2 (cwnmencing with Section 8879.77) to Chapter (2.491 of
Division I of Title 2 of the Govemment Code, and to add Chapter 9.5 (commencing
with Section 2420) to Division 3 of the Sttee[s and Flighways Code, relating to
transportation, making an appropriation therefor, and declaring the urgency thereof,
to take cifcct immediately.
- Amendment 3
On page 1. before line 1, insert:
SECTION I . Article 12 (commencing with Section 8879.77) is added to Chapter
12.491 of Division I of Title 2 of the Government Code, to read:
Article 12. Federal Transportation Economic Stimulus Funds
8879.77. (a) The depamnent may make a loan from the State Highway Account
of federal funds made available to it pursuant to subparagraph (B) of paragraph (2) of
subdivision (b) of Section 2423 of the Streets and Highways Code for purposes of
advancing a project, or a portion of a project, tbat has been programmed, on or before
Febntary 17, 2009, to be funded by Chapter 12.49 (commencing with Section 8879.20)
and that is ready to be obligated within l20 days of federal appottionment. The board,
as defined in subdivision (a) of Section 8879.22, may request the department to make
the loan. The amount of the request shall not exceed the amount of the unsold bonds
that the committee, as defined in subdivision (b) of Section 887222, has. by resolution,
authorized to be sold. Any amowtt loaned shall be deposited in the fund. a5 defined
by subdivision (c) of Section 8879.22, and shall be transferred to the appropriate account
for the project, or portion of a project. being Funded. The loan shall be repaid to the
State Flighway Account from the proceeds of bonds ,old ptrsuant to Chapter 12.49
(eonunencing with Section 8879?0). The board shall execute any documents as required
by the deparnnent to obtain and repay the loan. -
(b) Funds (oaned pursuant to this section shat l be allocated in the manner provided _
in Section 188 to eligible bond-funded projects, except that funds loaned pursuant to
this section may be allocated to eligible bond-titnded projects described in Section
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8879.52 without regard to Section 188. Contracts for projects funded with loan funds
shall be awazded within 180 days of federal apportionment. This subdivision shall not
cause or require the reprogramming of any projects under Chapter 12.49 (commencing
wish Section 8879.20).
(c) Upon repayment of n loan made pursuant to subdivision (a), those funds are
hereby appropriated to the department foruse on projects in the state highway operations
and protection program.
8879.78. if funds made available to a metropolitan planning organization,
county transportation commission, regional transportation planning agency, or other
local agency pursuant to Section 2423 of the Streets and Highways Code or from other
sources are used to fund any project to which bond funds were previously committed
under this chapter with the effect of displacing the need for those bond fimds on the
project, the commission shall allocate funds for one or more qualifying projects itt the
appropriate program under this chapter. in the jurisdiction of that agency, and in the
same amount of the displaced bond funds.
SEC. 2. Chapter 9.5 (commencing with Section 2420) is added to Division 3
of the Streets and Highways Code. to read:
CHAPTER 9.5. I'EDERAL I~RANSPO R'rAT10N EcONOMtC STIhIULUS PUNDS
2420. This chapter may be cited as the Transpotlation Economic Stimulus Act
of 2009.
2421. The Legislature finds and declares all of the following:
(a) Congress has enacted the American Recovery and Reinvestment Act of 2009
(Public Law I 1 1-5), Fvhich provides in part for supplemental federal funding to the
states for purposes of the federal-aid highway program.
(b) It is in the interest of the state to enstue that the highway transportation funds
~3 apportioned to the state under the federal act are fully obligated within the constraints
of that act.
(c) It is dte intent of the Legislature that the department, in constiltation with the
_; commission, regional transportation planning agencies, counties, and cities, shall have
sufficient authority to make full and expeditious use of federal funds apportioned to
~~ the state for economic stimulus.
(d) It is the intent of dtc Legislature that, to the extent allowable under the federal
act, priority be given to the use of stimulus fimds available for expendirure by the
Department of Transportation for projects that repair or rehabilitate the existing
transportation system and to advance funds for projects under the Highway Safery,
Traffic Reduction, Air Quality, and Pott Security Bond .Act of 2006 that have been
;r delayed or are injeopardy of being canceled due to [he state's inability to issue general
obligation bonds in the short-term. In the programming of these funds, consideration
shall be given to activities drat put Catifomians to work and provide needed economic
stimulus throughout the state.
(e) It is the intent of the Legislature that highway infi astrucrure investment fitnds
made available under the American Recovery and Reinvestment Act of 2009 are used
to contribute to a transportation system that is in sound structural condition,
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accommodates all users, is enviromncntally sustainable, and allows for the efficiem
mobility of goods and people.
(f) It is the intent of the Legislautre that the deadlines for obligating and
liquidating funds established by the American Recovery and ReinvestmentAct of 2009
apply to all federal funds appropriated by this chapter.
(g) As used in this chapter, "federal act" shat f mean the American Recovery and
Reinvestment Act of 2009.
2422. (a) Notwithstanding any other provision of law, the Legislature hereby
appropriates to the department the sum of two billion five hundred sixty-nine million
five hundred sixty-eight thousand tluee hundred twenty dollars ($2,569,568,320), and
any additional funds, made available to the state as highway infrasttucture investment
funds pursuant to Title XII of Division A of the American Recovery and Reinvestment
Act of 2009 and apportioned to the state pursuant to Title 23 of the United States Code
to carry out projects eligible under that act and in accordance with this chapter..
(b) The funds appropriated by this section shall be available for obligation and
expenditure by the dates specified in the federal requirements implementing the federal
act.
(c) It is the intent of the Legislature to allow for such Hexibility as is necessary
to perntit the successful implementation of the appropriations made by this section.
The Legislature hereby authorizes the i)eparuncnt of Finance to appropriately itemize
and schedule these appropriations, or v~ make adjustments as are necessary. in order
to successfully carry out the totem of the iedca'al act.
(d) The Director of Finance shall, within 90 clays aher the enactment of this
chapter, furnish the chairpersons of the committees in each house of the Legislature
that consider appropriations and the state budget, and the Chairperson of the Joint
Legislative Budget Committee, with a report that describes the schedule of funding.
The Director of Finance shall provide notification to the Legislature of any changes
in that schedule 30 days prior to any change taking effect.
2423. (a) The federal highway infrastructure investment funds made available
to the state under the formula apportionments of the American Recovery and
! Reinvestment Act of 2009 shat l be considered part of the surface transportation program
asset forth in paragraphs (3) and (4) of subdivision {d) of Section 133 of Title 23 of
the United States Code. These formula funds shall be apportioned 37.5 percent for
expenditure by the state to be programmed by the department and allocated by the
commission, and 62.5 percent to the metropolitan planning organizations, county
transportation conunissions, and regional transportation planning agencies in accordance
with subdivisions (b) and (c) of Section ] 82.6.
(b) (1) Funds available to be programmed by the department pursuant to
subdivision (a) shalt be programmed for eligible projects consistent with the federal
i act and this chapter.
1 (2) (A) A minimum of nine hundred [hirty-five million dollars (S93~,000.000)
i of the funds available pursuant to paragraph (I) shall be programmed far projects in
[he state highway operations and protection program.
(B) Nounore than three hundted ten million dollars (5310,000,000) of the funds
available pursuant to subparagraph (A) may be loaned pursuant to Section 8879.77 of
the Government Code to advance projects to be fiutdcd with moneys from the Highway
Safety, Traffic Reduction, Air Quality, and Port Secttrity Bond Act of 2006.
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Substantive
(c) Pursuant to theAmerican Recovrrv and ReinvestmenrAct uf2U09, 3 percent
of the federal funds, which is approximately seventy-seven million dollars
($77,000,000), made available to the state shall be used for transportation enhancement
activities. Ftmds allocated pursuant to this section for transportation enhancement
activities are not subject to the requirements of the state transportation improvement
program, Any funds apportioned to the stale pursuant to paragraph (2) of subdivision
(d) of Section 133. of Title 23 shall be distributed such Qtat 37.5 percent of these finds
shall be made available to the department and allocated by the commission and 62.5
percent shall be made available to the metropolitan planning organizations, county
transportation commissions, and regional transportation planning agencies in accordance
with the formula in subdivisions (b) and (c) of Section 182.6.
(1) In programming and allocating these funds, the department and the
metropolitan planning organizations, county transportation commissions, and regional
transportation agencies shall give priority to the sponsors of eligible projects that pararer
with, or conuvit to employ the services of, a community conservation corps or the
California Conservation Corps to constructor undertake the project, provided those
projects meet the regturements of the American Recovery and Reinvestment Act of
2009.
(2) After all eligible projects have b~cn selected pursuant to paragraph (1), the
department and the metropolitan planning organizations, county u~ansportation
commissions, and regional transportation agencies ,hall next give priority to projects
that provide facilities for pedestrians and bicyclists, provided those projects meet the
requirements of the American Recoven~ acid Rcinvesunent Act of 2009.
(3) After all eligible projects have been selected pursuant to pazagraph (2), [he
department and the metropolitan planning organizations, county transportation
commissions, and regional transportation agencies may fund any project eligible in
accordance with paragraph (35) of subdivision (a) of Section 101 of Title 23 of the
United States Code.
(d) It is the intent of the Legislaaue that at Icast 4U percent of the funds
apportioned to a metropolitan planning organization, county transporttnion commission,
or regional transportation planning agency be available for suballocation by that entity
to a city, county, or city and county for projects [hat meet the requirements of the
American Recovery and Reinvestment Act of 2009 and this chapter.
(1) Any funds suballocated by a metropolitan planning organization, county
transportation commission, or regional transportation planning agency that will not be
obligated by a city, county, or city and county by the deadlines specified in the American
Recovery and Reinvestment Act of 2009 shall be reallocated and available for
expenditure as determined by the metropolitan planning orgatrization, county
transportation commission, or regional transportation planning agency.
(2) A metropolitan planning organization, county transportation commission, or
regional transportation agency that suballocates lands to a city, county, or city and
county under this chapter shall establish reporting procedures for the city, county, or
city and county to ensure that funds are obligated and expended in accordance with
the American Recovery and Reinvestment l\ct of 2009 and thi chapter.
(e) (t) A metropolitan planting organization, county transportation commission;
or regional transportation planning agency receiving funds under this chapter shall
notify the department of the projected amount of nbligatianal authority that the entity
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Substantive
intends to use, including for funds that the entity subatlocated to a city, county. or city
and county pursuant to subdivision td). The report shall include, but no[ be limited to,
a list of projects that will be obligated by the following deadlines:
(A) By June l , 2009, for the ?0 percent of iimds required to be obligated within
120 days of federal apportionment.
(B} By February I, 2010, for any fwrds chat will not he obligated within one year
of federal apportionment.
(2) Any federal obligational authority that will not be used shall be redistributed
by the department to other projects in a manner that ensures that the state will continue
to compete for and receive increased obligational authority during the federal
redistribution of obligational authority. To the extent practical, the funds shall be
obligated within the geographic areas relinquishing the obligational authority.
(~ Funds apportioned by [his chapter are not eligible to be exchanged for
nonfederal State Highway Account funds as provided in subdivision (g) or (h) of
Section 182.6.
(g) The public participation requirements under Title 23 of the United States
Code shall apply to all transportation projects using federal fiords made available
pursuant to this chapter.
2424. (a) The department, metropolitan planning organizations, county
transportation commissions, regional transportation planning agencies. counties, cities,
and a city and county shall comply with all reporting requirements to the Federal
HigfivayAdrninistratiori {FHWA) established in federal law regarding funds made
available under the American Recovery and Reinvestment Ac[ of 2009.
(b) In complying with the requirements of subdivision (a), the department,
metropolitan planning organizations, counn- transportation commission,, regional
transportation planning agencies. counties, cities, and a city and county shall provide
the same data they provide to the FHWA to the commission under the same timelines
required by the FHWA or federal law, [regional entities shall include in the data
provided to the conunission information on the use of federal funds made available
under the American Recovery and Reinvestment Act of 2009 that were subatlocated
to cities and counties within theirjurisdiction.
(c) All jurisdictions that received and obligated or expended federal funds for
transportation enhancement activities pursuant to federal law and this chapter shall
include in the data they provide to the commission pursuant to subdivision (b) a
description ofthe number, value, and type ofprojcct that involved the participation of
} a community conservation corps or the California Conservation Corps.
(d) The commission, within 30 days of receiving the information required
pursuant to subdivision (b), shall compile the information and submit a report to the
budget committees and policy committees witlrjw~isdiction over transportation matters
in each house of the Legislature.
' SEC. 3. This act addresses the fiscal emergency declared by the Governor by
proclamation on December l9, 2008, pursuant to subdivision (f) of Section 10 ofArticle
IV of the California Constitution.
SEC. 4. Tlus act is an urgency starute necessary for the immediate preservation
of the public peace, health, or safety within the meaning ofArticle IV of the Constitution
and shall go into immediate effect. The facts constituting the necessity an.
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Su65tantive
1^ order [o implement the expenditure of tderal transportation funds recently
made available by Congress as part of [he American Reeovzn• and Reinvestment Act
of 2009 as quickly as possible, it is necessary that this net take etlcct immediately.
Amendmcm -1
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