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2006/04/11 City Council ResolutionRESOLUTION NO. 2006-100 A RESOLUTION OF THE COUNCIL OF THE CITY OF ROHNERT PARK, CALIFORNIA SUPPORTING A PROPOSITION 42 FIX ENDORSING EFFORTS TO PLACE A TRANSPORTATION FUNDING INITIATIVE ON THE STATEWIDE NOVEMBER 2006 BALLOT WHEREAS, nearly 70 percent of California voters approved Proposition 42 in the March 2002 primary to dedicate the state sales tax paid on gasoline to state and local transportation infrastructure projects and programs; and WHEREAS, organizations, individuals and businesses throughout California, including the City of Rohnert Park depend on the funding generated from the state sales tax on gasoline to fix potholes, improve intersections, and pave and improve local streets and roads; and WHEREAS, Prop. 42 contains a loophole which allows. state politicians to transfer the sales tax on gasoline to non - transportation state purposes; and WHEREAS, the state Legislature and governor have abused this loophole in two of the last three budget years — suspending Prop. 42 and sending transportation dollars to non - transportation state purposes. In total, nearly $2.5 billion in these gas tax revenues have been diverted to non - transportation expenses since 2002; and WHEREAS, the uncertainty year in and year out over whether state and local agencies will get Prop.42 funds has stalled or halted many vital projects, leaving local roads and streets at a breaking point; and WHEREAS, the California Transportation Commissions pointed to the instability in Prop. 42 funding as a key reason that our "state transportation program is in shambles "; and WHEREAS, California has the worst roads in the nation, according to a recent report by The Road Information Program; and WHEREAS, stabilizing Prop. 42 funding would go a long way to make the state and local transportation improvements needed to sustain our quality of life and our economy; and WHEREAS, stabilizing Prop. 42 funding would enhance the ability of state and local agencies to develop and carry out multi -year planning to address our backlog of needed road repairs, as well as budget for ongoing maintenance of infrastructure improvements, transit and other transportation projects; and WHEREAS, a coalition is currently collecting voter signatures to qualify a constitutional amendment for the November 2006 ballot that would prohibit the Legislature and governor from transferring these gas tax revenues in the future to non - transportation expenses; and WHEREAS, the measure also requires the state to reimburse the $2.5 billion in funds previously diverted but allows 10 years for repayment; Therefore, be it RESOLVED, that the City Council of the City of Rohnert Park supports this constitutional amendment to prevent future state budget diversions of Prop. 42 revenues. Be it FURTHER RESOLVED, that the City of Rohnert Park can be listed as a formal supporter and a member of Californians to Improve Traffic Now, the broad based coalition seeking to qualify and pass this constitutional amendment. DULY AND REGULARLY ADOPTED this I I'h day of April, 2006. CITY OF ROHNERT P ATTEST: BREEZE: ABSENT FLORES: AYE MACKENZIE: AYE VIDAK- MARTINEZ: ABSENT SMITH: NO AYES: (2) NOES: (1) ABSENT: (2) ABSTAIN: (0) ATTAC R J E N T 1 Constitutional Amendment to Ensure State Sales Taxes on Gasoline Go to Fund Transportation Improvements. Initiative to Prevent Legislature and Governor from Diverting Prop. 42 Funds to Non - Transportation Programs Background: • In 2002, nearly 70% of California voters passed Proposition 42 — dedicating the existing state sales tax on gasoline to fund transportation projects like congestion relief, road repairs, transit and safety improvements. Proposition 42 includes a provision that allows the legislature and Governor to divert funds to non - transportation expenses. o The state used this provision in two out of the last three budget years to fund other state needs. Nearly $2.5 billion in these sales taxes on gasoline have been diverted to non- transportation expenses since 2002. o As a result, state and local agencies have had to delay or stop safety improvements, congestion relief projects, road repairs and other pressing transportation needs. Initiative to Close Prop. 42 "Loophole" and Prevent Legislature and Governor from Diverting Resources to Non - transportation Needs: • A coalition of business, labor, local government, and community leaders is collecting signatures to qualify a constitutional amendment for the November 2006 ballot. • If qualified and passed by the voters, this measure would: ✓ Prevent the Governor and Legislature from diverting the sales taxes on gasoline to non - transportation expenses. ✓ Require the State to reimburse the $2.5 billion in transportation funds previously diverted. It allows 10 years for repayment to avoid any immediate fiscal impact. ✓ Permit the issuance of bonds by state and local agencies repaid by revenues derived from the sales tax on gasoline. Proponents claim this measure would provide a stable funding source to assist state and local agencies in the repair and maintenance of existing roadways, and for state transportation improvements, and allow them to: ✓ Fix hazardous intersections and unsafe state highways and freeways in California. ✓ Relieve traffic congestion through freeway widening, road repairs and transit projects. ✓ Repair crumbling city streets and county roads, fill potholes, and improve older roads. There is no known opposition at this time. Proponents need 598,105 valid signatures to qualify for the November 2006 ballot. For more information about these efforts, contact Amy O'Gorman, Regional Public Affairs Manager, League of California Cities, (707) 291 -3270 or ao org man@cacities.org. ATTAC F r IA E N T 2 1182. (SA2005RF0123) Transportation Funding. Initiative Constitutional Amendment and Statute. Summary Date: 01/03/06 Circulation Deadline: 06102106 Signatures Required: 598,105 Proponent: James Earp, c% Richard D. Martland (916) 446 -6752 Prohibits retention of funds earmarked for the Transportation Investment Fund in the General Fund for use unrelated to transportation after 7/1/08. Requires repayment by 6/30/17 of transportation funds retained in the General Fund in years prior to 2007 -08. Eliminates General Fund borrowing of specified transportation funds, except for cash -flow purposes (repayment required within 30 days of adoption of budget); current law allows borrowing for three years where Governor declares transfer would cause significant negative fiscal impact on governmental functions and Legislature enacts authorizing statute. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: No revenue or cost effects. Increases stability of funding to transportation in 2007 -08 and thereafter; reduces somewhat the state's flexibility to use specified transportation funds for other (nontransportation) activities. (SA2005RF0123) ?O Kr SECTION 1. TITLE. This act shall he known, and may be cited as, The Transportation Funding Protection Act of 2006, SECTION 2, FJNDINGS AND DFCL 1RATIONS The people find and declare as follows. (a) California's roads and highways are deteriorating at a rapid pace. (h) The cause of this deterioration is the annual diversion by the Legislature of state gasoline and diesel taxes for purposes other than transportation, (c) The purpose of this Act is to halt the diversions, preserve these revenues for the transportation purposes to which they are dedicated, and require repayment of transportatlon funds previously diverted for non - transportation purposes. (d) If a catastrophic natural disaster or other grave emergency causes serlous damage to California's transportatlon system, sufficient funds will be Imrnediately avallable to repair the damage and rebuild the transportation system. SECTION 3. Section G of'Article XIX i5 amended to read-. SEGTrON G, Vie_ta ° %igneked-"d-er tWo a #48le e} be a e�3 -ro -the enera> (a) That °Qtly- iimout Maned is to i8paid in f,i1 to the Fand Gem-94".1-it-Was art di . the game fii „ 1 yeff in w io + hu.xc,� • 1 }a- '•c�3- wos- fnacie; ea�eept���y>�� n�ity -lie delayed- ut3ii11a t� F►ot mere than 30 Jaya ttftet to date of eflaet ea of -the biadr.et..bill W the ..nbnrcn"vrr«i �n98 a (i)) That fte...whieh it wa.i k�orreefihtn firee ffaeal year ors a loos nii}de�ttct one e! > --fly �a Osvernt hes rrnainirned tece� e�er�,;,, Mid ���, °� � •, �t -t��e ernergeno� �villesul- siiiloa�egc�live- i"isenl- ittrfis ©tfe rite Cretetak FU d: (2) The aggregate a,,�Fnt of fer;'�+��yer��es- €or -tl�e etir�eii� ftse€t� yens pr�jeate�i- liy- tlSe- ��rverner- Fn• �port�ta�tlte- L- eg't- slattrre -��; aT °., �F{.,,n �.,.�. ° „' sib- yea> =; il le.9T,- t= �44= 'Q - - =_ ^ 11i GlinzQf aener-z.,- pz4 9ee1 - Yea-ra kd}uster�r- th�c}ta�ge•in- tile - ,~test -ef living- c>��ke- el3�ge-- "�- pep�eei�ed -i� th"urfen fibenl -yem -% -I- tel kle ing-in -Feria seatian pfebibits the z e t.gkt„-e rron- eatrtheA Tlxc Mgjslature Ma y, by statute, authorize loans to 1oml transportation agencies, cities, counties, or cities and eountics,.from funds that are subject to this article, far the purposes authorized under this article. Any loan authorized as described by this subdivisi ;n section shall be repaid, with interest at the rate paid oat money in the Pooled Money Investment Account, or ally successor to that account, during the peiiad of time that the money is loaned, to the fund from which it was borrowed, not later than four years after the data; on which the loan was made. SF- CtTTION 4. Section 1 of Arti�c7JeyX IXy- A is repealed. '�'l'7F Q 'y 9 t�{�i�v�.lol;•7 n .i�.} ^t �G- L"[tViit7 '2'Y(itt. •v- ••F•i 1 n+ir.,,- rA -cviaQ iit -i' 'tlie, Ctatarn-'aLwton to that If 01;e at 13C � Il l�t$"(SOil[ ttiilit9 is iml esed r t niourt latit�ed k^ 1~^ rep ;1.:., t l •to th an,.. lint .luFiii , t1,e -su1--A t9efA �- �uhislrtite�oa�de;- e�ee}�t- fiat- rep�ctyrtte.: «,�e1�ye�l- tint�l�eE taor-e-111 a a Ala afentratmsnt � 1-f t� th� subsequent oni yeffs- ' -- {- h�- 'Fhn�ttnytt- 1 ^���e -r ell -in- full- tetJ3e- eesettn�•�i#hi� - dw 1, ,n wd e- ine re. f th e zfiea =1 lowng- lseeed; -(1 try- e€emergene3� anri deelrs� es tl i mergetiey ti res ti i mlt'+sant n�^ �a., r.,, l impact to -the Geoeml Fu 4 •- •- (�} -T�e- aggregate- �ttae�xnE- af•Cen,,..�� ,,�.a ���per ►ues�fbr- tlie- v�t•1- �es�as project e�C4vart}or -H3 a Femme g lan�r �-ttte otarre€ fFsoaf yeah +s-- lesatt -- the- aggt�gnie- wetter- e- f- Gt�te���l- Ruijti••rxe� the- pare.: �.,- �gF -�al� ear; fls�s eei n � ;� e sE�hrtti aver at=n, .Y,�r ��tr_�eetian 1- t ele -I-V �r�}re- etrrreni.- frsettl -yeas; SECTION S, Section 1 of Article XIX S is amended to read: SECTION 1. (a) For the 2003 -04 fiscal year and each fiscal year thereafter, all moneys thnt me collected di ring the fiscal year from taxes under the Sales and Use Tax Law (Part I (comm.ertcing with Section 6001) of Division 2 of the Revenue and Taxation Code), or any successor to that law, upon the sale, storago, use, or other consumption in this State of inotorvehicle fuel, and that are deposited in the General Fund of the State pursuant to that law, shall be transferred to the Transportation Investment Fund, which is hereby created in the State Treasury. (b) () ) For the 2003 -04 to 2007 -09 fiscal years, inclusive, moneys in the Transportation Investment Fund 9hall be allocated, upon appropriation by the Legislature, in accordance with Section 7104 of the 12cvenue slid Taxation Code as that section read on the -2- ape M- 6 to eU ltiff- ffAkle h, (arch G, 2002. (2) For the 2008 -09 fiscal year and each fiscal year thereafter, moneys in the Transportation Investment Fund shalt be allocated solely for the following purposes: (A) Public transit and inass transportation. (B) Transportation capital improvement projects, subject to the laws governing ilrc State Transportation Improvement Program, or arty succcssorto that program. (C) Street andhighway maintenance, rehabilitation, irconstntction, or storm damage repair conducted by cities, including a cityand county; (D) Street and highway maintemance, rehabilitation, recoa)9truction, or stornt damage repair conducted' by counties, including a city and county. (c) For the 2008-09 fiscal year and each fWal year the- reafter, moneys in the Transpomtion'Investment Fund shall lie allocated, upon appropriation by the Legislature, as follows: (A) Tiventy percent of the moneys for the purposes set forth in subparagraph (A) of paragraph (2) of.subdivisiou (b), (B) Forty percent of the moneys for the puurposes sot forth in subparagraph (13) of paragraph (2) of subdivision (b). (C) Twenty percent of the moneys for the purposes set -forth in subparagraph (C) of paragraph (2) of subdivision (b). (D) Twenty percent of the moneys for the pui}tosc set forth in subparagraph (D) of paragraph (2) of subdivision (b). (d) The transfer of revenues from the Gcncral Fund of (he State to the Transportation Invosttnent Fund pursuant to subdivision (a) may be Suspended, in whole or in part, for a any fiscal year preceding the 200.7 -08 fiscal year if both of the following conditions are snot: (1) The Governor leas ismued a proclamation (hat declares that the transfer of revenues pursuant to subdivision (a) will result in a significant negative fiscal impact on the range of functions of government funded by the General Fund ofthe State. (2) The Legislature enacts by statute, pursuantto a bill pasaed in each house of the Legislature by rollcall vote etihGrcd in theloumal, two - thirds of the mernbovship concurving, a suspension for that fiscal year of the transfer ofrevenuea pursuant to subdivision (a), provided that the bill does not corntaiu any otlter unrelated provision. -I- Tl-� (Q The Legistature may enact `a statute that modifies the. ;pereentage shares set forth in subdivision (c) by a bill passed in each house of the Legislature by rollCall vote entered in the journal, two- thirds oithe,menibcrship concurring, provided that the hill does nut contain any other unrelated provision And that (he'moneyn described in subdivision (a) are expended solely fbi, the purposes set forth in paragraph {z} of subdivision (b). SECTION 6. article XIX'G is added to the constitution to read: SECTION 1. Tax revenues designated in Articles XIX aii&XIX B, and funds designated j Article XfX A may be loaned to the General Fund to meet the short term cash flow needs of tIte state only if tike loon iq to be repaid in full to the.futtd of account from which it was borrowed during the game fiscal year in which tho loan was made, except that repayment may be delayed until. a date not more than 34 days aria the elate of enactment of the budget bill for tine subsequent fiscal year, In na event s1t11) any Ioan authorized herein impede in any manner the transportation purpose for which the revenues are gelnctmod and ox st. SECTTON 7. Conflicting Ballot Meaiures III the event that this measierc and another measure or measures relating to the digposition of transports0on revanuos slisll appear on the: carne sctatewide election hallot, tlic previsions of tine other mcasures shall be deemcd to be in coiiflict with this measure, In the event that this measure shall receive a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and tho previsiona of the ether measuros shall be null and void, -4 ATTA'' H M E N T 3 We Support Closing the Prop. 42 Loophole! Measure Ensures Once-and-for-all that Gas Tax Dollars Go to Transportation! 3/31/06 Transportation Advocates California Alliance for Jobs Transportation California Rail Passenger Association of California Contra Costa Transportation Authority Sonoma County Transportation Authority Placer County Transportation Planning Agency Joseph Levy, Past Chairman, California Transportation Commission Labor Advocates California State Council of Laborers Operating Engineers, Local No. 3 Northern California Carpenters Northern California District Council of Laborers Southern California District Council of Laborers Laborers' International Union of North America, Pacific Southwest Region Laborers' International Union of North America, Local 777 Laborers' Union Local 802 Laborers' Union Local 220 Laborers' Union Local 270 Building and Construction Trades Council of Alameda County, AFL -CIO Public Health and Environment Advocates North Cal -Neva Resource Conservation and Development Cleaner Air Partnership Local Government and Elected Officials League of California Cities California State Association of Counties California Contract Cities Association Local Government and Elected Officials (cost.) American Planning Association, California Chapter Gateway Cities Council of Governments Butte County Association of Governments Las Virgenes — Malibu Council of Governments Contra Costa County Mayors' Conference City of South San Francisco City of Pasadena City of Bishop City of Carson City of Chino Hills City of Clayton City of Cloverdale City of Daly City City of Gilroy City of Mountain View City of Novato City of Redwood City City of San Mateo Town of Tiburon City of Torrance City of West Covina City of Westmorland Mayor Heather Fargo, City of Sacramento Mayor Jeannie Bruins, City of Citrus Heights Mayor Harry T. Price, City of Fairfield Mayor Andy Morin, City of Folsom Mayor Tom Cosgrove, City of Lincoln Mayor Jim Spering, City of Suisun City Mayor Pro Tem Sophia Sherman, City of Elk Grove Mayor Pro Tern Stephan Lieberman, City of Grover Beach Mayor Pro Tern Patsy Marshall, City of Buena Park Vice -Mayor Paul V. Morris, City of San Pablo Paid for by Californians to Improve Traffic Now, a coalition of taxpayers, construction, business and labor, and California Alliance for Jobs Rebuild California Committee and California State Council of Laborers Issues PAC 591 Redwood Highway, No. 4000 • Mill Valley, CA 94941 • 800 - 827 -1242 • info @close42loophole.com Local Government and Elected Officials (cont.) Supervisor Roger Dickinson, Sacramento County Supervisor Anthony Botelho, San Benito County Council Member Michael Segala, City of Suisun City Council Member Frank Kardos, City of Fairfield Council Member Peter Hill, City of Rocklin Council Member Rochelle A. Bird, City of Moraga Council Member Kathy Lund, City of Rocklin Council Member Janice Rutherford, City of Fontana Council Member Susan Seamans, City of Rolling Hills Estates Council Member Mike Healy, City of Petaluma Council Member Pat Gilardi, City of Cotati Council Member Patrick Kwok, City of Cupertino Council Member Stanley Cohen, City of Sonoma Council Member Mike Smith, City of Dixon Former State Assembly Member Lynne C. Leach Taxpayer Advocates California Taxpayers' Association Contra Costa Taxpayers Association Pleasant Hill Taxpayers Association Sonoma County Taxpayers' Association Alliance of Contra Costa Taxpayers Waste Watchers, Inc. Business /Economic Development Organizations California Chamber of Commerce California Business Alliance California Business Roundtable California Association for Local Economic Development California Business Properties Association California Building Industry Association Engineering and Utility Contractors Association Associated General Contractors of California Contra Costa Council Los Angeles Area Chamber of Commerce California Dump Truck Owners Association Associated General Contractors of California, San Diego Chapter Consulting Engineers and Land Surveyors of California Nevada County Contractors' Association California Chapters of the National Association of Industrial and Office Properties Orange County Business Council Business /Economic Development Organizations cont. San Gabriel Valley Economic Partnership Construction Materials Association of California California Metals Coalition Infrastructure Delivery Council International Council of Shopping Centers Retail Industry Leaders Association Cloverdale Chamber of Commerce Downey Chamber of Commerce Fairfield- Suisun Chamber of Commerce Fullerton Chamber of Commerce Greater Riverside Chambers of Commerce Otay Mesa Chamber of Commerce Orange Chamber of Commerce and Visitor Bureau Redwood City — San Mateo County Chamber of Commerce Santa Clara Chamber of Commerce and Convention - Visitors Bureau Individual Businesses Teichert Construction — Sacramento Granite Construction, Inc. —Watsonville Concrete Coring Company — Los Angeles Post Equipment Company — Tustin Alliance Contracting — Camarillo The Lessler Group — Suisun City Mesa Contracting Corporation — Orange Mosier Rock Ojai Quarry — Ventura County Toro Enterprises, Inc. — Oxnard Jezowski and Markel Contractors, Inc. — Orange Iry Burnham Construction, Inc. — Camarillo Specialty Crane and Rigging Corp. — Santa Barbara Burns - Pacific Construction, Inc. — Thousand Oaks QC Southwest, Inc. — Escondido August Construction — Los Angeles Ugalde Trucking Co. Inc. — Orange Miller Blades Inc. —Alta Loma Sharma Contractors, Inc. — Moorpark Hudson Business Networks, Inc. — Suisun City Ralph Stone & Company, Inc. — Los Angeles Rossco Inc. Equipment Rentals — Gardena Toomey Industries — Long Beach Riverside Construction Company, Inc - Riverside Paid for by Californians to Improve Traffic Now, a coalition of taxpayers, construction, business and labor, and California Alliance for Jobs Rebuild California Committee and California State Council of Laborers Issues PAC 591 Redwood Highway, No. 4000 • Mill Valley, CA 94941 • 800 - 827 -1242 • info @close42loophole.com