sr-052212-13bMay 22, 2012
CITY CLERK'S OFFICE - MEMORANDUM
To: City Council
From: Mayor Bloom, Mayor Pro Tem, Davis, Councilmember O'Connor
Date: May 22, 2012
13 -13: Request of Mayor Bloom, Mayor Pro Tern Davis and Councilmember
O'Connor to support AB 1446 that would enable voters to consider
elimination of the Measure R expiration date in order to issue bonds to
accelerate transportation projects in the LA County Metro adopted Measure
R Expenditure Plan. This bill removes the sunset provision so that Metro
can borrow funds against the Measure R revenues for the respective
transportation, highway and transit projects. It would allow Metro to extend
the existing transactions and use tax of 0.5% that was approved by the
voters in 2008 beyond the existing 30 year period without a limitation as to
its duration, subject to two- thirds voter approval.
13 -B
May 22, 2012
May 10, 2012
TO: Maria Rychlicki
CC: Director Pam O'Connor
FROM: Mike Boh►ke
SUBJECT: Background and general Recommendations regarding AB 1446 (Fuer)
Recommendations
The WSCC should support AB 1446, the state legislation that would enable voters of Los
Angeles to consider eliminating the Measure R expiration date and issuing bonds to accelerate
projects identified in the legislatively required update of the Metro - adopted Measure R
Expenditure Plan.
The issues of concern to the WSCCOG should be focused on providing input to Metro in its
development of the Updated Expenditure Plan.
The Measure R Expenditure Plan Update which should be adopted prior to committing to
acceleration of any Measure R project should include:
• transparent documentation of the anticipated changes in current Expenditure Plan capital
project schedules and capital budgets that would be enabled by 35 -Year TIFIA loans and
elimination of the 2039 Measure R expiration date
• transparent documentation of the ongoing costs, funding needed, and projected funding
sources for operations, maintenance, and capital rehabilitation of the current and
projected Metro - owned - and - operated Transit and Highway elements once they are
constructed
• transparent documentation of any new commitments that would be enabled by the
elimination of the 2039 Measure R expiration date once proposed acceleration
commitments are met (e.g. a WeHo connection to a Crenshaw North).
Justification:
All elements of the Measure R Program, including both the transit and highway elements of
Measure R are enhanced by the proposed extension that would eliminate the current 2039
expiration date and would make Measure R consistent with the other two Los Angeles County
Sales Tax Measures (Proposition A and C); sales tax measures from all three sources would
continue "... until voters rescind...." any of the Measures
• With the 35 -year TIFIA loans and the extension of Measure R, additional bond revenues
(in conjunction with the currently required 3% local contribution) would ostensibly allow
the construction acceleration of the 12 Measure R transit projects, e.g. Westside Subway
extension completion from 2036 to 2022.
• Under the Extension, all Measure R programs will continue to receive the same
percentage share as defined in the original legislation; e. g. in the areas of Operations
(Rail) (5 %), Countywide Bus Operations — Metro and Municipal Operators (20 %), and
Local Return (15 %)
1
• The Countywide acceleration benefits include the potential creation of approximately
525,000 new jobs related to completion of the Subway to Westwood..
Public Opinion polling completed in March 2012 indicates that approximately 83% of voters in
the Westside cities would favor the extending of Measure R "until voters rescind..." The polling
also suggests a strong level of support throughout the rest of Los Angeles County.
Questions:
1. Why has Metro decided that this extension strategy should focus on the "Acceleration" of
Projects rather than merely backfilling the estimated $413 Measure R revenue shortfall
that has developed as a result of the extended recession?
2. How can Metro ensure that Metro's deferred maintenance and rehabilitation needs are
met before additional Metro capital project commitments are made so that funding made
possible by the Measure R extension, loans and bonding results in projects that are able
to be operated, maintained and rehabilitated indefinitely into the future?
3. Why is Metro rushing to the November 2012 ballot before it has adoted an updated
expenditure plan that balances acceleration while addressing life -cycle costs of current
commitments?
4. What confidence does Metro have that it can deliver the projects on the accelerated
schedules and simultaneously implement recovery programs addressing the deferred
maintenance needs?
Backaround from Metro documents:
(On pages 2 and 3 of the Measure R Extension Board Memo staff states)
"According to our analysis, the extension of Measure R is essential to any effort to accelerate
all 12 transit projects consistent with the Board's "30/10 Initiative" policies and to accelerate the
highway program." Specifically, a $4.0 billion need exists that could not be financed through
various means, as follows:
• A large ($4.0 billion) State or Federal grant is not currently available;
• A very large, very low interest Federal loan ($8.4 billion at 2.17 %) is not available;
• A series of TIFIA loans with a maximum term of 35 years totaling $4.7 billion
may be available from the America Fast Forward Federal legislation.
"When combined with two very large New Starts commitments and traditional Measure R
financing, the 35 -year TIFIA loans would enable the completion of all 12 Measure R transit
projects within 10 years instead of 28 years, a potential 24 year improvement. A similar 35 -year
TIFIA loan strategy for Measure R highway projects could be employed to permit financing of up
to $3.7 billion in highway projects not now possible during the next ten years.
"Therefore there are several reasons we (Metro Staff) believe the extension of Measure R is an
opportunity that the Board should seriously consider putting before the voters for approval. First,
the accelerated Measure R highway and transit projects will provide congestion relief up to 24
years faster than is otherwise possible. Also, the projects will have an average useful life that
exceeds the maximum 35 year loan term. Finally, it promotes job creation during the still slow
economic recovery and at a time when construction firms are producing very competitive bids.
P]
The Extension:
➢ Facilitates a 30 -10 transit project acceleration schedule; and
➢ Helps close the 30 year $22.38 LRTP highway funding gap by $3.75 B in first 10 years..
➢ Any Measure R Extension would mirror the same existing Expenditure Plan structure for
all elements of Measure R Programs, including both Transit Projects and Highway
Projects.
On the Transit side, the Expenditure Plan would accomplish two things:
A. Accelerate the "Funds Available' dates for 5 second and third decade projects from
existing outer years to an earlier fiscal year, e.g. The LAX Airport extension would
conceivably move from an existing FY 2028 to FY 2018 date.
B. Measure R transit projects would be "accelerated to their optimal schedule" based on
three (3) factors:
1. Defining the project to be built;
2. How to stay within budget; and
3. Environmental clearance
Highway:
The LRTP faces a 30 year $22 Billion Highway funding gap due to:
a) failure of the State and Federal levels of Government to raise the Gas Tax accounting for
$10.2238;
b) Unmet Freight Program needs of $2.758B; and
c) Tolls /3 -P program for $9.378
• AB1446 has passed through the Transit Committee with an 11 -1 vote in favor and now
heads to Finance Committee. There is No opposition at this time.
• The Metro Board will begin considering the issue of placing some form of a Measure R
Extension (as defined under AB 1446) on the November, 2012 Ballot with an August
deadline for any Measure to reach the Ballot.
• Under AB 1446 the primary focus is to give Metro permission to accelerate (27 major)
projects and give permission to "extend Measure R until voters "vote to end it"
3
0 Los Angeles County
Metropolitan Transportation Authority
etru-
One Gateway Plaza 213.922.2000 Tel
Los Angeles, CA 90012 -2952 metro.net
EXECUTIVE MANAGEMENT COMMITTEE
MAY 17, 2012
SUBJECT: MEASURE R EXTENSION
ACTION: APPROVE PRINCIPLES AND BUDGET
RECOMMENDATION
A. Adopt the Measure R Extension Principles (Attachment A);
B. Review and comment on the Draft Ordinance(Attachment B);
C. Review and comment on the Draft Resolution requesting the Los Angeles County
Board of Supervisors to place the Ordinance on the ballot for the November 6, 2012
countywide general election (Attachment C);
D. Amend the FY13 budget to add $10 million to fund election.costs and public
information; and
E. Receive and file information on the key milestones for placing a measure on the
ballot.
ISSUE
At the April 2012 Committee meetings, staff presented a status report on various
Measure R project acceleration methodologies. The most promising methods being
evaluated would extend the term of the Measure R sales tax beyond 2039. The Board
requested additional information on what such an initiative would entail. This report
provides key elements of an initiative to extend Measure R for the purpose of
accelerating transit and highway project construction and implementation and providing
ongoing operations, maintenance, and local return funding. This initiative could be
placed on the November 2012 ballot.
DISCUSSION
Accelerate Projects
In April 2010, the Board approved its support for the "30110 Initiative." The Board has
also approved the Accelerated Highway program. Since April 2010, the "30/10 Initiative"
focused on federal financing programs to accelerate its'Measure R /Long Range
Transportation Plan (LRTP) transit and highway projects. This national legislative effort
led by Metro is known as America Fast Forward. Both the House and the Senate have
appointed conferees to consider their final reauthorization legislation. That final
legislation will likely include an expanded Transportation Infrastructure Finance and
Innovation Act ( TIFIA) program of direct US Treasury Loans for transportation projects.
Additionally, staff have aggressively pursued the advancement of the Accelerated
Highway Program. Key to this strategy is the advancement of a robust public private
partnership (P3) program. This program has yielded positive results in that at least
three of our major highway projects appear to be excellent candidates for P3
arrangements. One of the key challenges with all of the Measure R projects including
the highway projects is that many still need additional federal or state funds. An
extension of Measure R would allow us to provide certainty with respect to much of the
funding for these projects while not relieving the federal or state governments of their
obligations to fund these projects. An expanded TIFIA program will also assist the
highway projects as the expanded TIFIA language allows highway projects to compete
for these loans.
The expanded TIFIA loans will have a maximum term of 35 years and can be used for
up to 49% of total project cost. To take full advantage of the expanded federal TIFIA
loan program to accelerate Measure R projects, it would be advantageous to extend
Measure R by 20 years or more so that any "30/10 Initiative" loans taken during the
later part of this decade could be repaid over 35 years instead of the 23 year maximum
now possible if Measure R expires in 2039. This government -to- government 35 year
loan strategy dramatically increases our ability to provide long term mobility
improvements and jobs during the prolonged slow economic recovery.
According to our analysis, the extension of Measure R is essential to any effort to
accelerate all 12 transit projects consistent with the Board's "30/10 Initiative" policies
and to accelerate the highway program. Specifically, a $4.0 billion need exists that
could be financed through various means, as follows:
• A large ($4.0 billion) State or Federal grant that is not currently available;
• A very large, very low interest loan ($8.4 billion at 2.17 %), also not found to be
available; or
• A series of TIFIA loans with a maximum term of 35 years totaling $4.7 billion
from the America Fast Forward legislation.
When combined with two very large New Starts commitments and traditional Measure
R financing, the 35 year TIFIA loans make the completion of all 12 Measure R transit
Measure R Extension Page 2
projects within 10 years instead of 28 possible from a financial perspective, a potential
24 year improvement. A similar 35 year TIFIA loan strategy for Measure R highway
projects could be employed to permit financing of up to $3.7 billion in highway projects
not now possible over the next ten years.
Therefore there are several reasons we believe the extension of Measure R is an
opportunity that the Board should seriously consider putting before the voters for
approval. First, the accelerated Measure R highway and transit projects will provide
congestion relief up to 24 years faster than is otherwise possible. Also, the projects will
have an average useful life that exceeds the maximum 35 year loan term. Finally, it
promotes job creation during the still slow economic recovery and at a time when
construction firms are producing very competitive bids.
Public Support for Job Creation
Since Measure R was passed in 2008, the economy has become an increasingly critical
concern to the public now that the full impacts of the economic downturn have been
realized. In March 2012, staff retained Fairbanks, Maslin, Metz and Maullin, a polling
firm, to determine public support of a ballot measure to extend Measure R. Two focus
groups were conducted first to identify whether enough support exists to justify
spending resources on conducting a poll. The overwhelming response was strong
support for such a measure because an accelerated public works construction program
would provide a needed shot in the arm to the sluggish local economy. A poll was then
conducted of approximately 1,400 county residents with representative samples of the
five county subregions. Again the results found overwhelming support for a ballot
measure extending Measure R ranging from 71 — 83% depending on the county
subregion. The highest ranking reason respondents supported the measure was the
fact that it would accelerate job creation in the near term. The Los Angeles County
Economic Development Corporation projects that the Measure R construction program
will generate over 410,000 direct and indirect jobs within the Southern California region,
over 150,000 through transit project construction and over 250,000 through highway
project construction.
Authority to Extend Sales Tax
Assembly Bill (AB) 1446 (Feuer) would authorize the Board to place an extension of
Measure R on a future ballot. Specifically it would:
• Eliminate the 30 year sunset date;
• Allow Metro to bond against the sales tax revenues and use bond proceeds to
accelerate the Measure R highway and transit projects; and
• Require Metro to adopt a new Expenditure Plan which updates when funds are
anticipated to be available for projects and when the projects are anticipated to
be completed.
As of the drafting of this report, AB 1446 has been approved by: the Assembly
Committee on Local Government, the Assembly Committee on Transportation and the
Measure R Extension Page 3
Assembly Committee on Appropriations. Attachment A contains a Draft Ordinance for
Board review and comment that would implement the extension of Measure R.
Outreach
Staff has been in the process of reaching out to local jurisdictions to gain feedback on
extending Measure R. The Chief Executive Officer is in the process of presenting the
general goals and the impacts of extending Measure R to the Councils of Governments
(COGs) to receive input. The presentation includes an overview of Measure R, the
projects already underway, recent poll results, and the benefits of extending the
measure. Staff will also reach out to other key stakeholders. A draft of the presentation
is contained in Attachment D. Staff will report to the Board on the feedback received.
Information Materials
If the Board adopts an ordinance to extend Measure R, it is the responsibility of the
agency to provide informational materials. Staff envisions that a brochure, web page
and other informational materials will be developed to inform the public of the measure.
All materials will be vetted by County Counsel to ensure there is no advocacy in the
materials provided and every communication piece will be solely information in nature.
A brief brochure presenting the goals of extending Measure R will be produced and
sent to county residents. Given that the effort will modify only two key elements of
Measure R (eliminating the sunset date and accelerating some project schedules) the
brochure will be limited in scope.
Consolidation for General Election
If the Board chooses to put a measure before the voters in November 2012, several key
actions must occur. Following are the filing requirements and related deadlines:
Resolution
July Board
Consider Board adoption of Sales Tax Measure Ordinance and
Meeting
Resolution Requesting consolidation with the November General
Election
August 10
Last day to submit the Ordinance and Resolution to the County of
Los Angeles Registrar - Recorder /County Clerk and the Board of
Supervisors
The adopted Resolution must to be submitted by August 10th and must include: 1) the
purpose of the election (i.e. submitting a sales tax measure question to electors); 2)
ballot measure text; 3) the vote requirement for measure passage (i.e. 2/3 votes cast);
and 4) a statement that Metro will reimburse the County for costs incurred. The ballot
measure text must not exceed 75 words including the title and must be clearly labeled
and identified in the body of the "Resolution Calling the Election." This is the text that
will be printed in the sample ballot.
Withdrawal or Amendment
August 15
Last day to submit a resolution requesting to amend or withdraw
measure
A request to amend or withdraw the measure may be submitted on or before August
15th. The request must also be in the form of a resolution similar to the initial request.
Measure R Extension Page 4
Letter Desi nation
August XX I
Last day to request specific letter designation
The Registrar Recorder /County Clerk will assign a letter designation to each measure in
alphabetical order. Metro may request a specific letter designation by written
correspondence. If it has not been assigned to another measure, the request will most
likely be granted. The Registrar Recorder's office recommends submitting two alternate
letter choices in the event the requested letter(s) have been assigned to another
measure.
Arguments & Rebuttals
August 20
Last day to submit arguments for or against any ballot measure
August 30
Last day to submit rebuttals by authors of arguments for or against a
ballot measure
Arguments for or against a measure or rebuttals must be submitted by August 20th and
30th respectively. Arguments may be no longer than 300 words in length. Rebuttals
may be no longer than 250 words in length. Rebuttals must be signed by the original
authors for the argument.
Sample Ballot
S1 —Oct.
period that a sample ballot will be mailed to all voters
16
DETERMINATION OF SAFETY IMPACT
A ballot measure to extend Measure R has no negative impact on system safety, and
might have a significant positive impact on regional transportation system safety overall.
In fact, since transit corridor projects would be accelerated by up to 24 years, the
substantial safety benefits of transit travel versus highway travel for the period of
accelerated service availability could be substantial, according to the National Safety
Council website:
"Injury Facts® compares four modes of transportation: scheduled airlines,
railroad passenger trains (including Amtrak and commutation), buses, and light
duty vehicles (includes passenger cars, light trucks, vans and sports utility
vehicles regard less of wheelbase). In general, buses, trains and airlines have
much lower death rates than light duty vehicles when the risk is expressed as
passenger deaths per passenger mile of travel. (Light duty vehicle drivers are
considered passengers but operators and crew of planes, trains and buses are
not.) In 2009, the passenger death rate in light duty vehicles was 0.53 per 100
million passenger - miles. The rates for buses, trains and airlines were 0. 04, 0.02,
and 0.01 respectively."
For highway improvements, newer projects have modern safety features that may also
have a net safety benefit for users.
Measure R Extension Page 5
FINANCIAL IMPACT
The financial impact of the staff recommendation is limited to the cost of putting the
measure before the voters of Los Angeles County. The FY13 budget will be amended
and the funding of $10 million for this effort will be reserved pending passage of AB
1446 (Feuer).
The FY13 budgeted amount of $10 million will be under the direction of the CEO. Eight
million dollars will be placed in Board Office Cost Center 1010, under the Governmental
and Oversight Activities Project #100002, Election Costs task, and $2 million in the
Executive Office Communications Cost Center 7010, under the Governmental and
Oversight Activities Project 100002, Election Costs task.
Impact to Bus and Rail Operating and Capital Budget
The proposed source of funds for this action is State Repayment of Capital Project
Loans Fund. These funds are available for use on bus and rail operating and capital
projects.
ALTERNATIVES CONSIDERED
As discussed above, we considered and pursued large grants and loans for the "30/10
Initiative' and found them both not to be available in the amounts and rates necessary
to make the Initiative possible. We also considered a fallback plan for use in the event
that federal reauthorization legislation does not pass, but the Measure R extension
does pass. That fallback plan found that far fewer TIFIA loan funds would be available
for the transit and highway Measure R programs, making it necessary to defer at least
one major transit project and eliminating approximately $1 billion of the $3.7 billion in
accelerated highway funds forecasted to be available using our preferred strategy.
Additionally we considered a shorter term extension of Measure R. While a shorter term
extension might allow for limited acceleration of transit capital and highway projects, it
would not allow us to address funding gaps in key projects and would not allow for the
funding of future LRTP projects beyond those currently funded through Measure R.
Finally, our LRTP also remains in place, should the Board or the voters themselves
decide not to approve the extension of Measure R.
NEXT STEPS
Staff will continue to implement outreach to the COGS and other stakeholders through
May and the beginning of June. Staff will present final Ordinance and Resolution
language for approval at the June 2012 Board meeting. We will also continue to work
with legislative staff to monitor the progress of AB 1446.
Measure R Extension Page 6
ATTACHMENT
A. Measure R Extension Principles
B. Measure R Extension Draft Ordinance
C. Measure R Extension Draft Resolution
D. Outreach Presentation
Prepared by: Matthew Raymond, Chief Communications Officer
Cosette Stark, Director, Research and Development
Michael Turner. State Affairs Director
David Yale, Executive Officer, Countywide Planning and Development
Measure R Extension Page 7
Paul C. Taylor
Deputy Chief Executive Officer
Arthur T. Leahy
Chief Executive Officer
Measure R Extension Page 8
ATTACHMENT A
MEASURE R EXTENSION PRINCIPLES
1. Continue Measure R until Los Angeles County voters decide to eliminate the
sales tax
2. Accelerate Measure R transit and highway project schedules, consistent with the
"30/10" Board Initiative, and modify the Expenditure Plan dates accordingly
3. Preserve existing Measure R commitments including:
a. funding for projects and program categories
b. restrictions on transferring funds between projects and funding categories
c. oversight
4. Preserve geographic equity
5. Allow Board to fund Long Range Transportation Plan Projects after Expenditure
Plan Completion
6. Board must vote for specific financing plans for project acceleration
Measure R Extension Page 9
ATTACHMENT B
This attachment is not yet available. It will be sent by separate cover.
Measure R Extension Page 10
ATTACHMENT C
This attachment is not yet available. It will be sent by separate cover.
Measure R Extension Page 11
AMENDED IN ASSEMBLY APRIL 26, 2012
AMENDED IN ASSEMBLY APRIL 17, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
CALIFORNIA LEGISLATURE- 2011 -12 REGULAR SESSION
ASSEMBLY BILL No. 1446
Introduced by Assembly Member Feuer
January 4, 2012
An act to amend Section 130350.5 of, and to add Section 130350.6
to, the Public Utilities Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1446, as amended, Feuer. Los Angeles County Metropolitan
Transportation Authority: transactions and use tax.
Existing law authorizes the Los Angeles County Metropolitan
Transportation Authority (MTA) to impose, in addition to any other
tax that it is authorized to impose, a transactions and use tax at a rate
of 0.5% for not more than 30 years for the funding of specified
transportation- related purposes pursuant to an adopted expenditure plan,
subject to voter approval.
This bill would authorize MTA to impose that transactions and use
tax without a limitation as to its duration, subject to voter approval. The
bill would require MTA to secure bonded indebtedness payable from
the proceeds of the tax imposed and would require that the proceeds
from those bonds be used to accelerate the completion of specified
projects and programs. The bill would require MTA to amend the
expenditure plan in a specified manner and would make other related
conforming changes.
M.
AB 1446
—2—
Vote: majority. Appropriation: no. Fiscal committee: yes.
State - mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. The Legislature hereby finds and declares all of
2 the following:
3 (a) Section 130350.5 of the Public Utilities Code authorizes the
4 Los Angeles County Metropolitan Transportation Authority (MTA)
5 to propose for voter approval a 30- year'' /z cent sales and use tax
6 dedicated to the construction and operation of transportation- related
7 projects, to be enumerated in a local ballot measure. In November
8 2008, more than 67 percent of Los Angeles County voters approved
9 this tax pursuant to a ballot measure known as Measure R.
10 (b) The Measure R transit, highway, and other transportation
11 projects became part of the MTXs Long Range Transportation
12 Plan, along with an expenditure plan that spread the costs and
13 construction of the Measure R projects over the 30 -year duration
14 of the Y, cent sales and use tax.
15 (c) Since 2008, the nation and the State of California have
16 plunged into a recession. In Los Angeles County, 336,000 jobs
17 have been lost since 2007. An estimated 582,900 people were
18 unemployed in Los Angeles Coimty as of October 2011. The
19 construction industry has been hit particularly hard: more than
20 53,300 construction jobs have been lost since 2007, and some
21 estimates put the percentage of area construction workers who are
22 out of work as high as 40 percent.
23 (d) Traffic congestion is increasing throughout Los Angeles
24 County, and new, environmentally sound transit options are
25 desperately needed as alternatives to private vehicle trips and the
26 economic, environmental, and health impacts that result from them.
27 (e) Therefore, the Legislature intends to authorize the MTA to
28 seek voter approval to eliminate the sunset date for the imposition
29 of the Measure R sales and use tax authorization and allow the
30 MTA to bond against the proceeds from the tax and build the
31 Measure R projects and programs much sooner than originally
32 contemplated without relying on federal or state funding. Providing
33 for the imposition of this sales and use tax and for the accelerated
34 completion of Measure Rprojects and programs would create more
35 than 166,000 desperately needed jobs and dramatically improve
96
-3— AB 1446
1 the economy, environment, and public health of Los Angeles
2 County.
3 SEC. 2. Section 130350.5 of the Public Utilities Code is
4 amended to read:
5 130350.5. (a) In addition to any other tax that it is authorized
6 by law to impose, the Los Angeles County Metropolitan
7 Transportation Authority (MTA) may impose, in compliance with
8 subdivision (b) and Section 130350.6, a transactions and use tax
9 at a rate of 0.5 percent that is applicable in the incorporated and
10 unincorporated areas of the county.
11 (b) For purposes of the taxing authority set forth in subdivision
12 (a), all of the following apply:
13 (1) The tax shall be proposed in a transactions and use tax
14 ordinance, that conforms with Chapter 2 ( cormnencing with Section
15 7261) to Chapter 4 ( commnencing with Section 7275), inclusive,
16 of the Transactions and Use Tax Law (Part 1.6 (commencing with
17 Section 725 1) of Division 2 of the Revenue and Taxation Code),
18 and that is approved by a majority of the entire membership of the
19 authority.
20 (2) The tax may be imposed only if the proposing ordinance is
21 approved by two - thirds of the voters, in the manner as otherwise
22 required by law, voting on this measure, in an election held on
23 November 4, 2008, or at a subsequent election and, if so approved,
24 shall become operative as provided in Section 130352.
25 (3) The proposing ordinance shall specify, in addition to the
26 rate of tax and other matters as required by the Transactions and
27 Use Tax Law, that the net revenues derived from the tax are to be
28 administered by the MTA as provided in this section. Net revenues
29 shall be defined as all revenues derived from the tax less any
30 refunds, costs of administration by the State Board of Equalization,
31 and costs of administration by the MTA. Such costs of
32 administration by the MTA shall not exceed 1.5 percent of the
33 revenues derived from the tax. The MTA shall, during the period
34 in which the ordinance is operative, allocate 20 percent of all net
35 revenues derived from the tax for bus operations to all eligible and
36 included municipal transit operators in the County of Los Angeles
37 and to the MTA, in accordance with Section 99285. However, the
38 allocations to the MTA and eligible and included municipal
39 operators shall be made solely from revenues derived from a tax
40 imposed pursuant to this section, and not from local discretionary
96
AB 1446
—4—
1 sources. Funds allocated by MTA to itself pursuant to this section
2 shall be used for transit operations and shall not supplant funds
3 from any other source allocated by MTA to itself for public transit
4 operations. Funds allocated by MTA to the eligible and included
5 municipal operators pursuant to this section shall be used for transit
6 operations and shall not supplant any funds authorized by other
7 provisions of law and allocated by MTA to the eligible and
8 included municipal operators for public transit. In addition to this
9 amount, the MTA shall allocate 5 percent of all net revenues
10 derived from the tax, for rail operations. The MTA shall include
11 the projects and programs described in subparagraphs (A) and (B)
12 in the expenditure plan required under subdivision (f). The MTA
13 shall include all projects and programs described in the expenditure
14 plan required under subdivision (f) in its Long Range
15 Transportation Plan (LRTP). The priorities for projects and
16 programs described in subparagraphs (A) and (B) and in the
17 expenditure plan required under subdivision (f) shall be those set
18 forth in the expenditure plan. The funding amounts specified in
19 subparagraphs (A) and (B) are minimum amounts that shall be
20 allocated by the MTA from the net revenues derived from a tax
21 imposed pursuant to this section. Nothing in this section prohibits
22 the MTA from allocating additional net revenues derived from the
23 tax to these projects and programs.
24 (A) Capital Projects.
25 (i) Exposition Boulevard Light Rail Transit Project from
26 downtown Los Angeles to Santa Monica. The sum of nine hundred
27 twenty -five million dollars ($925,000,000).
28 (ii) Crenshaw Transit Corridor from Wilshire Boulevard to Los
29 Angeles International Airport along Crenshaw Boulevard. The
30 sum of two hundred thirty -five million five hundred thousand
31 dollars ($235,500,000).
32 (iii) San Fernando Valley North -South Rapidways. The sum of
33 one hundred rnillionfive hundred thousand dollars ($100,500,000).
34 (iv) Metro Gold Line (Pasadena to Claremont) Light Rail Transit
35 Extension. The sum of seven hundred thirty -five million dollars
36 ($735,000,000).
37 (v) Metro Regional Connector. The sum of one hundred sixty
38 million dollars ($160,000,000).
39 (vi) Metro Westside Subway Extension. The sum of nine
40 hundred million dollars ($900,000,000).
96
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-5— AB 1446
(vii) State Highway Route 5 Carmenita Road Interchange
Improvement. The sum of one hundred thirty-eight million dollars
($138,000,000).
(viii) State Highway Route 5 Capacity Enhancement (State
Highway Route 134 to State Highway Route 170, including access
improvement for Empire Avenue). The stun of two hundred
seventy-one million five hundred thousand dollars ($271,500,000).
(ix) State Highway Route 5 Capacity Enhancement (State
Highway Route 605 to the Orange County line, including
improvements to the Valley View Interchange). The sum of two
hundred sixty -four million eight hundred thousand dollars
($264,800,000).
(x) State Highway Route 5 /State Highway Route 14 Capacity
Enhancement. The sum of ninety million eight hundred thousand
dollars ($90,800,000).
(xi) Capital Project Contingency Fund. The sum of one hundred
seventy -three million dollars ($173,000,000).
(B) Capital Programs.
(i) Alameda Corridor East Grade Separations. The sun of two
hundred million dollars ($200,000,000).
(ii) MTA and Municipal Regional Clean Fuel Bus Capital
(Facilities and Rolling Stock). The sum of one hundred fifty million
dollars ($150,000,000).
(iii) Countywide Soundwall Construction (MTA Regional List
and Monterey ParldState Highway Route 60). The sum of two
hundred fifty million dollars ($250,000,000).
(iv) Local return for major street resurfacing, rehabilitation, and
reconstruction. The sum of two hundred fifty million dollars
($250,000,000).
(v) Metrolink Capital Improvements. The sum of seventy million
dollars ($70,000,000).
(vi) Eastside Light Rail Access. The sum of thirty million dollars
($30,000,000).
(c) The MTA may incur bonded indebtedness payable from the
proceeds of the tax provided by this section pursuant to the bond
issuance provisions of Section 130500 et seq. of the Public Utilities
Code, and any successor act. The MTA shall include in the
expenditure plan, required under subdivision (f), the amount of
net revenue specified for all projects and programs in
subparagraphs (A) and (B) of paragraph (3) of subdivision (b) as
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a condition of the use and expenditure of the proceeds of the tax.
The MTA shall maintain the current amount of any funding for
the projects and programs specified in this section that has been
previously programmed or received from sources other than the
proceeds of the tax, and may not reallocate money that has been
previously programmed or received for those projects and programs
to other projects or uses.
(d) Notwithstanding Section 725 1.1 of the Revenue and Taxation
Code, the tax rate authorized by this section shall not be considered
for purposes of the combined rate limit established by that section.
(e) A jurisdiction or recipient is eligible to receive funds from
the local return program, described in clause (iv) of subparagraph
(B) of paragraph (3) of subdivision (b) of this section and in
paragraph (1) of subdivision (b) of Section 130350.6, only if it
continues to contribute to that program an amount that is equal to
its existing' corrunitment of local funds or other available funds.
The MTA may develop guidelines that, at a minimum, specify
maintenance of effort requirements for the local return program,
matching fiords, and administrative requirements for the recipients
of revenue derived from the tax.
(i) Prior to submitting the ordinance to the voters, the MTA
shall adopt an expenditure plan for the net revenues derived from
the tax. The expenditure plan shall include, in addition to other
projects and programs identified by the MTA, the specified projects
and programs listed in paragraph (3) of subdivision (b), the
estimated total cost for each project and program, fiords other than
the tax revenues that the MTA anticipates will be expended on the
projects and programs, and the schedule during which the MTA
anticipates fiords will be available for each project and program.
The MTA shall also identify in its expenditure plan the expected
completion dates for each project described in subparagraph (A)
of paragraph (3) of subdivision (b). To be eligible to receive
revenues derived from the tax, an agency sponsoring a capital
project or capital program shall submit to the MTA an expenditure
plan for its project or program containing the same elements as
the expenditure plan that MTA is required by this subdivision to
prepare.
(g) The MTA shall establish and administer a sales tax revenue
fiord. The net revenue derived from the tax, after payment of any
debt services and related obligations, shall be credited to this fund.
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The moneys in the fund shall be available to the MTA to meet
expenditure and cashflow needs of the projects and programs
described in the expenditure plan required under subdivision (f).
In the event that there are net revenues in excess of the amount
necessary to provide the amount of net revenues specified in the
expenditure plan for the projects and programs described therein,
the MTA may expend the excess net revenues on projects and
programs in the expenditure plan or the LRTP. In the event that
projects and programs in the expenditure plan are completed
without the expenditure of the amount of net revenues specified,
the MTA shall expend the excess net revenues on projects and
programs in the expenditure plan or the LRTP within the same
subregion as the project or program that is completed. For the
purposes of this section, "subregion" shall be defined in the LRTP.
(h) If other funds become available and are allocated to provide
all or a portion of the amount of net revenues specified in the
expenditure plan for the projects or programs described therein,
the MTA may expend the surplus net revenues on other projects
and programs in the expenditure plan or the LRTP.
(i) (1) Notwithstanding subdivision (h), if a capital project or
capital program described in clauses (i) to (x), inclusive, of
subparagraph (A) of paragraph (3) of subdivision (b) and clauses
(i) and (vi) of subparagraph (B) of paragraph (3) of subdivision
(b), has been fully funded from other sources on or before
December 31, 2008, the funds designated to the project or program
in clauses (i) to (x), inclusive, of subparagraph (A) of paragraph
(3) of subdivision (b) and clauses (i) and (vi) of subparagraph (B)
of paragraph (3) of subdivision (b) shall remain in the subregion
in which the project or program is located and shall be allocated
to other projects or programs in the subregion prior to the
expiration of the tax.
(2) A capital projector capital program funded with reallocated
Rinds pursuant to paragraph (1) shall be included in the adopted
2008 Long Range Transportation Plan or the successor plan and
shall be of regional significance as determined by the MTA. For
purposes of this subdivision, "subregions" means the subregions
as defined in the LRTP in effect as of January 1, 2008.
0) Notwithstanding Section 130354, revenues raised under this
section and Section 130350.6, may be used to facilitate the
transportation of people and goods within Los Angeles County.
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The use of the revenues shall not be limited to public transit
purposes.
(lc) No later than 365 days prior to the adoption of an amendment
described in paragraph (1) to an expenditure plan adopted pursuant
to subdivision (f), including, but not limited to, the expenditure
plan adopted by the MTA board as "Attachment A" in Ordinance
#08 -01 adopted by the board on July 24, 2008, and in addition to
any other notice requirements in the proposing ordinance, the board
shall notify the Members of the Legislature representing the County
of Los Angeles of all of the following:
(1) A description of the proposed amendments to the adopted
expenditure plan that would do any of the following:
(A) Affect the amount of net revenues derived from the tax
imposed pursuant to this act that is proposed to be expended on a
capital project or projects identified in the adopted expenditure
plan.
(B) Delay the schedule for the availability of funds proposed
to be expended on a capital project or projects identified in the
adopted expenditure plan.
(C) Delay the schedule for the estimated or expected completion
date of a capital project or projects identified in the adopted
expenditure plan.
(2) The reason for the proposed amendment.
(3) The estimated impact the proposed amendment will have
on the schedule, cost, scope, or timely availability of funding for
the capital project or projects contained in the adopted expenditure
plan.
(0 The notification required pursuant to subdivision (lc) shall
be achieved by resolution adopted by the MTA board.
(m) The MIA board shall provide prior written notice to the
Members of the Legislature representing the County of Los
Angeles of any proposed amendments to the adopted expenditure
plan that would accelerate funding for a capital project or projects
in the adopted expenditure plan.
SEC. 3. Section 130350.6 is added to the Public Utilities Code,
to read:
130350.6. (a) The tax authorized by Section 130350.5 may
be imposed as set forth in paragraph (3) of subdivision (b) of
Section 130350.5 in a transactions and use tax ordinance, or an
amendment of the ordinance approved pursuant to paragraph (1)
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of subdivision (b) of Section 130350.5, that conforms with Chapter
2 (commencing with Section 7261) to Chapter 4 (conunencing
with Section 7275), inclusive, of the Transactions and Use Tax
Law (Part 1.6 (commencing with Section 7251) of Division 2 of
the Revenue and Taxation Code), and that is approved by a
majority of the entire membership of the authority. The tax may
be imposed pursuant to this section only if the proposing ordinance,
or amendment thereof, is approved by two - thirds of the voters, in
the mariner as otherwise required by law, voting on this measure,
in a special or general election and, if so approved, shall become
operative as provided in Section 130352. The proposing ordinance
shall specify that the net revenues derived from the tax are to be
administered by the N! Los Angeles County Metropolitan
Transportation Authority (MTA) as provided in this section. Net
revenues shall be defined as all revenues derived from the tax less
any refunds, costs of administration by the State Board of
Equalization, and costs of administration by the MTA. Such costs
of administration by the MTA shall not exceed 1.5 percent of the
revenues derived from the tax.
(b) (1) The MTA may incur bonded indebtedness payable from
the proceeds of the tax authorized by this section pursuant to the
bond issuance provisions of this chapter, and any successor act.
Proceeds from those bonds shall be used to accelerate the
completion of the projects and programs identified in
s4paragraphs (A) and (B) paragraph (3) of subdivision (b) of
Section 130350.5.
(2) Upon completion of the projects and programs identified in
paragraph (1), any funds remaining from the bonds described in
paragraph (1) and any funds remaining from the proceeds of the
tax authorized by this section, after payment of the bonded
indebtedness, shall be
subdivision (g) of Section 130350.5 expended by the MTA on
projects and programs in the Long Range Transportation Plan or
its successor plans.
(c) Prior to submitting the ordinance described in subdivision
(a) to the voters, the MTA shall amend the expenditure plan
adopted pursuant to subdivision (t) of Section 130350.5. The
amended plan shall update all of the following for the projects and
programs listed in subdivision (b): the estimated total cost for each
project or program, the schedule during which the MTA anticipates
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1 funds will be available for each project or program, and the
2 expected completion dates for each projector program.
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� • • � ' •
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> Half cent sales tax
> For transportation improvements
> Throughout Los Angeles County
> 30 Years - Pay as You Go
a) Metro 1
(D Metro
"k Rail Expansion s -
t
Operating
Improvements Local Improvements
Metrolink d Rail Facilities
Measure R Extension will
maintain funding commitments
2
op Funding 12 transit projects
► • •, 6 highway •, • projects
• Limiting reductions in transit service
• Keeping fares low for students, seniors and
the disabled
a) Metro
3
> Expo Phase I
> Expo Phase II
> Gold Line Foothill Extension
> Metro Orange Line Extension (Canoga)
> Burlington Northern Santa Fe Grade Separations
> Soundwalls
> 1 -4057 1 -1107 1 -105, SR -91 Ramp Improvements
> 1 -5 HOV from SR -134 to SR -170
> 1 -5 North /SR -14 Capacity Enhancement
> 1- 5 /Carmenita Rd. Interchange
> 1- 5/SR -14 HOV Connector
> Arroyo Verdugo Operational Improvements
> Las Virgenes /Malibu Operational Improvements
13
decide to eliminate it.
Metro 14
IN IM40 M, 611=0
project schedules
> Preserve existing Measure R funding
commitments and restrictions
• Ensure geographic equity
• Create opportunities for new projects
AVbk
tu Metro 15
> 71 -76% support for the extension as written
> Strong support
from every region of County
• 83% `yes'
in
Westside
• 78% `yes'
in
South Bay
• 77% `yes'
in
Central Los Angeles
• 71% `yes'
in
San Gabriel Valley
• 67% `yes'
in
San Fernando Valley
• 68% `yes'
in
North County
• 63% `yes'
in
Southeast Los Angeles County
M,-
Source: FM3 16
• Accelerate transit and highway construction
• Create bonding capacity
• Take advantage of lower interest rates an
construction costs
> Complete promised transit and highway expansion
much sooner
> Provide continued funding for:
• Highway projects
• Transit projects
0 • Local Return projects
Metro
M
• More local jobs and a boost to local economy
• Local dollars, local projects, local control
• Improved traffic flow for drivers
• More transportation options for generations to
come
• Safer streets, roads and highways
• An affordable alternative to high gas prices
n�
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Orange Line Extension
Exposition Transit
Corridor Phase 2
West Santa Ana
Transit Corridor
Airport Metro Connector
Eastside Transit 7 ,
a 7 nr i. �� snail, e 3 rx q
Corridor Phase 2
South Bay Metro
Green tine Extension
Sepulveda Pass
Transit Corridor
ACCELERATED TIM EERAM E'^ > I ORIC(NA{"fiMEFRAMF.>
0
Metro 19
* State legislation
Action by •' Board
* 2/3 voter approval in November
QD Metro 20
a) Metro 21