City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council provide a policy position on AB 1446 (Feuer), as
amended, the Los Angeles County Metropolitan Transportation Authority:
transactions and use tax.
BACKGROUND/DISCUSSION:
In 2008, AB 2321 (Feuer) authorized Metro to adopt a ½ cent sales tax in Los
Angeles County upon approval of the voters. When Los Angeles County voters
approved the tax, known as Measure R, to fund construction of specified
transportation projects, they also approved an expenditure plan that spread the
costs of those projects over the 30-year duration of the tax. Measure R increased
the Los Angeles County sales tax from 8.25% to 8.75% (a half-cent increase) to fund
transportation projects. On July 21, 2008, the City Council voted unanimously to
support AB 2321 and directed staff to advocate the City Council’s position.
AB 1446 would authorize the Los Angeles County Metropolitan Transportation
Agency (Metro) to place on a ballot for Los Angeles County voter approval the
permanent extension of an existing county-wide ½ cent sales and use tax, which
currently sunsets in 30 years. Revenue from the existing ½ cent tax implemented by
the approval of Measure R, is dedicated to the construction and operation of rail,
highway and bus projects in Metro’s Long Range Transportation Plan (LRTP), as
well as local initiatives such as street and signal improvements, bicycle and
pedestrian projects, and more.
Meeting Date: 07/23/12 Item Number: A-4
CITY COUNCIL AGENDA ITEM: Consideration of a Policy Position on Assembly
Bill 1446 – The Los Angeles County Metropolitan Transportation Authority:
Transactions and Use Tax.
Contact Person/Dept.: Shelly Wolfberg Phone Number: (310) 253-6008
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: []
Commission Action Required: Yes [] No [X] Date:
Public Notification: Meetings and Agendas – City Council (07/20/12); Office of
Assemblymember Mike Feuer (07/12/12)
Department Approval:
Martin R. Cole (07/19/12)
City Attorney Approval:
Carol Schwab (by H. Baker) (07/18/12)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball) (07/19/12)
City Manager Approval:
John Nachbar (07/20/12) City of Culver City, California
Agenda Item Report
The author argues that since 2008, the nation, the State of California and Los
Angeles County have been plunged into a deep recession, with unemployment,
especially in the construction sector, strikingly high. In addition, traffic congestion is
increasing as the Los Angeles region’s population continues to grow. The author
contends the region needs more transportation options to accommodate more than
3 million additional residents anticipated over the next three decades from an
increase in population alone.
AB 1446 is intended to give Los Angeles County voters the opportunity to extend the
duration of a local source of funding for a program of transportation infrastructure
projects that will benefit the Los Angeles region. The anticipated new revenue can
be bonded against to build projects in Metro’s LRTP sooner. For Fiscal Year
2012/2013, the Culver City portion of Measure R’s Operating Revenue is expected
to reach $1.6 million.
The City’s current Legislative Advocacy Program supports “efforts to maintain and
increase funding for transportation operations, programs and projects throughout the
City”.
The Westside Cities Council of Governments has informally discussed AB 1446 and
will be having a formal discussion on this subject during their August meeting with
the intent of the WSCCOG Board taking a policy position on this item. Any action
the City Council may take tonight will inform the City’s delegates to the COG on how
to vote during the COG’s deliberations.
FISCAL ANALYSIS:
There is no fiscal impact for the City to take a policy position on AB 1446.
ATTACHMENTS:
AB 1446 Amended Bill Text-Amended in the Senate on June 19, 2012.
MOTION:
That the City Council:
1. Consider AB 1446, and, if desired, take a policy position to support,
support if amended, or oppose the bill; and, City of Culver City, California
Agenda Item Report
2. Direct the City Manager to prepare a letter for the Mayor’s signature
consistent with the policy position, if any, taken by the City Council.
MEETING DATE: July 23, 2012
AGENDA ITEM: Consideration of Support for Assembly Bill 1446.
ATTACHMENTS
Pages
AB 1446 Amended Bill Text-Amended in the Senate on June19,
2012.
1-10
AMENDED IN SENATE JUNE 19, 2012
AMENDED IN ASSEMBLY MAY 17, 2012
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|101010|Introduced by Assembly Member Feuer
(Coauthor: Assembly Member Brownley)
January 4, 2012
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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 the MTA to impose that transactions and
use tax without a limitation as to its duration, subject to voter approval.
The bill would require the MTA to secure bonded indebtedness payable
from the proceeds of the tax imposed and would require that the
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1proceeds from those bonds, and from the tax after repayment of bonded
indebtedness, be used to accelerate the completion of specified projects
and programs, and to fund specified operations. The bill would require
the MTA to amend the expenditure plan in a specified manner and
would make other related conforming changes.
V ote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:|101010101010101010 10
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SECTION 1. The Legislature hereby finds and declares all of
the following:
(a) Section 130350.5 of the Public Utilities Code authorizes the
Los Angeles County Metropolitan Transportation Authority (MT A)
to propose for voter approval a 30-year|1010|/|1010| cent sales and use tax
dedicated to the construction and operation of transportation-related
projects, to be enumerated in a local ballot measure. In November
2008, more than 67 percent of Los Angeles County voters approved
this tax pursuant to a ballot measure known as Measure R.
(b) The Measure R transit, highway, and other transportation
projects became part of the MTA’s Long Range Transportation
Plan, along with an expenditure plan that spread the costs and
construction of the Measure R projects over the 30-year duration
of the|1010|/|1010| cent sales and use tax.
(c) Since 2008, the nation and the State of California have
plunged into a recession. In Los Angeles County, 336,000 jobs
have been lost since 2007. An estimated 582,900 people were
unemployed in Los Angeles County as of October 2011. The
construction industry has been hit particularly hard: more than
53,300 construction jobs have been lost since 2007, and some
estimates put the percentage of area construction workers who are
out of work as high as 40 percent.
(d) Traffic congestion is increasing throughout Los Angeles
County, and new, environmentally sound transit options are
desperately needed as alternatives to private vehicle trips and the
economic, environmental, and health impacts that result from them.
(e) Therefore, the Legislature intends to authorize the MTA to
seek voter approval to eliminate the sunset date for the imposition
of the Measure R sales and use tax authorization and allow the
MTA to bond against the proceeds from the tax and build the
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Measure R projects and programs much sooner than originally
contemplated without relying on federal or state funding. Providing
for the imposition of this sales and use tax and for the accelerated
completion of Measure R projects and programs would create more
than 166,000 desperately needed jobs and dramatically improve
the economy, environment, and public health of Los Angeles
County.
SEC. 2. Section 130350.5 of the Public Utilities Code is
amended to read:
130350.5. (a) In addition to any other tax that it is authorized
by law to impose, the Los Angeles County Metropolitan
Transportation Authority (MTA) may impose, in compliance with
subdivision (b) and Section 130350.6, a transactions and use tax
at a rate of 0.5 percent that is applicable in the incorporated and
unincorporated areas of the county.
(b) For purposes of the taxing authority set forth in subdivision
(a), all of the following apply:
(1) The tax shall be proposed in a transactions and use tax
ordinance, that conforms with Chapter 2 (commencing with Section
7261) to Chapter 4 (commencing 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.
(2) The tax may be imposed only if the proposing ordinance is
approved by two-thirds of the voters, in the manner as otherwise
required by law, voting on this measure, in an election held on
November 4, 2008, or at a subsequent election and, if so approved,
shall become operative as provided in Section 130352.
(3) The proposing ordinance shall specify, in addition to the
rate of tax and other matters as required by the Transactions and
Use Tax Law, that the net revenues derived from the tax are to be
administered by the MT A 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. The MTA shall, during the period
in which the ordinance is operative, allocate 20 percent of all net
revenues derived from the tax for bus operations to all eligible and
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included municipal transit operators in the County of Los Angeles
and to the MTA, in accordance with Section 99285. However, the
allocations to the MTA and eligible and included municipal
operators shall be made solely from revenues derived from a tax
imposed pursuant to this section, and not from local discretionary
sources. Funds allocated by MTA to itself pursuant to this section
shall be used for transit operations and shall not supplant funds
from any other source allocated by MTA to itself for public transit
operations. Funds allocated by MTA to the eligible and included
municipal operators pursuant to this section shall be used for transit
operations and shall not supplant any funds authorized by other
provisions of law and allocated by MTA to the eligible and
included municipal operators for public transit. In addition to this
amount, the MTA shall allocate 5 percent of all net revenues
derived from the tax, for rail operations. The MTA shall include
the projects and programs described in subparagraphs (A) and (B)
in the expenditure plan required under subdivision (f). The MTA
shall include all projects and programs described in the expenditure
plan required under subdivision (f) in its Long Range
Transportation Plan (LRTP). The priorities for projects and
programs described in subparagraphs (A) and (B) and in the
expenditure plan required under subdivision (f) shall be those set
forth in the expenditure plan. The funding amounts specified in
subparagraphs (A) and (B) are minimum amounts that shall be
allocated by the MTA from the net revenues derived from a tax
imposed pursuant to this section. Nothing in this section prohibits
the MTA from allocating additional net revenues derived from the
tax to these projects and programs.
(A) Capital Projects.
(i) Exposition Boulevard Light Rail Transit Project from
downtown Los Angeles to Santa Monica. The sum of nine hundred
twenty-five million dollars ($925,000,000).
(ii) Crenshaw Transit Corridor from Wilshire Boulevard to Los
Angeles International Airport along Crenshaw Boulevard. The
sum of two hundred thirty-five million five hundred thousand
dollars ($235,500,000).
(iii) San Fernando Valley North-South Rapidways. The sum of
one hundred million five hundred thousand dollars ($100,500,000).
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(iv) Metro Gold Line (Pasadena to Claremont) Light Rail Transit
Extension. The sum of seven hundred thirty-five million dollars
($735,000,000).
(v) Metro Regional Connector. The sum of one hundred sixty
million dollars ($160,000,000).
(vi) Metro Westside Subway Extension. The sum of nine
hundred million dollars ($900,000,000).
(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 sum 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 sum 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 Park/State 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).
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(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
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 7251.1 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 commitment 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 funds, and administrative requirements for the recipients
of revenue derived from the tax.
(f) 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 MT A, the specified projects
and programs listed in paragraph (3) of subdivision (b), the
estimated total cost for each project and program, funds 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 funds 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
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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
fund. The net revenue derived from the tax, after payment of any
debt services and related obligations, shall be credited to this fund.
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 project or capital program funded with reallocated
funds pursuant to paragraph (1) shall be included in the adopted
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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.
(j) 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.
The use of the revenues shall not be limited to public transit
purposes.
(k) 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.
(l) The notification required pursuant to subdivision (k) shall
be achieved by resolution adopted by the MTA board.
(m) The MTA 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
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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)
of subdivision (b) of Section 130350.5, that conforms with Chapter
2 (commencing with Section 7261) to Chapter 4 (commencing
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 manner 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 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) 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.
(c) Proceeds from the sale of bonds issued pursuant to
subdivision (b) and proceeds of the tax authorized by this section,
after payment of the bonded indebtedness, shall be used to
accelerate the completion of the projects and programs identified
in subparagraphs (A) and (B) of paragraph (3) of subdivision (b)
of Section 130350.5, and for operations pursuant to paragraph (3)
of subdivision (b) of that section.
(d) Upon completion of the projects and programs identified in
subparagraphs (A) and (B) of paragraph (3) of subdivision (b) of
Section 130350.5, any funds remaining from the bonds described
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in subdivision (b) and any funds remaining from the proceeds of
the tax authorized by this section, after payment of the bonded
indebtedness, shall be expended by the MTA on projects and
programs in the Long Range Transportation Plan or its successor
plans, and for operations pursuant to paragraph (3) of subdivision
(b) of Section 130350.5.
(e) Prior to submitting the ordinance described in subdivision
(a) to the voters, the MTA shall amend the expenditure plan
adopted pursuant to subdivision (f) of Section 130350.5. The
amended plan shall update all of the following for the projects and
programs listed in subdivision (c): the estimated total cost for each
project or program, the schedule during which the MT A anticipates
funds will be available for each project or program, and the
expected completion dates for each project or program.
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