07 Staff Report - Silicon Valley Manufacturing GroupBowe nF MEETING DATE: 3/21/05
ITEM NO. 7
COUNCIL AGENDA REPORT
!ps° GAS~S
DATE: MARCH 14, 2005
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT: ADOPT RESOLUTION IN SUPPORT OF THE SANTA CLARA COUNTY
TRAFFIC RELIEF LEGISLATION FOR THE VEHICLE REGISTRATION
SURCHARGE SENATE BILL (SB680) SPONSORED BY THE SILICON
VALLEY MANUFACTURING GROUP (SVMG)
RECOMMENDATION:
Adopt resolution in support of the Santa Clara County Traffic Relief Legislation for the Vehicle
Registration Surcharge Senate Bill (SB680) sponsored by the Silicon Valley Manufacturing Group
(SVMG).
BACKGROUND:
The Silicon Valley Manufacturing Group (SVMG) is sponsoring a bill that would fund a number of
modestly-priced but key traffic congestion relief projects throughout the county. The bill is being
carried by State Senator Joe Simitian with Senator Elaine Alquist and Senator Liz Figueroa serving
as principal co-author.
Assembly members Ira Ruskin, Joe Coto, Rebecca Cohn, Sally Lieber, John Laird, Alberto Torrico,
and Simon Salinas are principal co-authors. The bill is modeled on AB 1546, a bill Senator Simitian
carried forthe City-County Associations of Governments (C/CAG) of SanMateo County last session
that was signed by the Governor.
DISCUSSION:
AB 1546 authorized C/CAG to impose an annual fee of up to $4.00 per vehicle registered in San
Mateo County to pay for congestion management projects (ramp metering, shuttles, road
reconstruction, etc.) as well as storm water pollution prevention activities (street sweeping, storm
inlet cleaning, auto repair sh T mi spections, etc.). The fee will sunset in 2009.
PREPARED BY: J HN E. CURTIS
irector of Parks and Public Works
Reviewed by: _Assistant Town Manager -O/Town Attorney Clerk Administrator
~..Finance Community Development Revised: 3/14/05 1:17 pm
Reformatted: 5/30/02 N:\B&E\COUNCIL REPORTS\vehicle.registration.surcharge.reso.wpd
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION IN SUPPORT OF THE SANTA CLARA COUNTY
TRAFFIC RELIEF LEGISLATION FOR THE VEHICLE REGISTRATION
SURCHARGE SENATE BILL (SB680) SPONSORED BY THE SILICON
VALLEY MANUFACTURING GROUP (SVMG)
MARCH 14, 2005
The bill will impose a $5.00 annual surcharge on vehicles registered in Santa Clara County and
would primarily fund congestions management projects. The fee would sunset in 2014. Based on 1.4
million registered cars (the number registered in 2004 in Santa Clara County), a $5.00 registration
surcharge would generate approximately $7 million/year or $56 million over eight years (2006-
2014).
SVMG's goal in sponsoring this bill is to move a number of meaningful traffic relief projects
forward throughout the county. SVMG also sees the bill as a means to help rebuild the collaborative,
can-do spirit that in the past has enabled the Valley to successfully address common challenges. The
funding categories, criteria for selecting projects within those categories, and percentages of funding
of each category described below, have been developed in consultation with transportation
professionals throughout the county. The selection criteria for projects funded by this bill will
include geographic equity, congestion relief, cost-effectiveness, and identified county priority.
The expenditure framework is as follows:
$560,000 to DMV (approximately 1% of total revenues).
$4 million for Caltrain capacity improvements. These funds could be used for Santa Clara
County's share of the cost of purchasing additional Baby Bullet train cars, or making
station or parking improvements. All improvements must serve Santa Clara County.
$4 million for litter removal and landscape restoration ($500,000 per year). This money
can be used on highways or county expressways. Any unused funds would revert to
competitive pool (#2) described below.
The remaining $47 million would be divided into thirds:
$16 million for Tier IA county expressway improvements in the County Expressway Plan,
including signal timing/coordination and ramp metering, small scale congestion relief
projects, and funding matches for larger projects.
$16 million for competitive pool for cities/towns and county for road operational and ITS
improvements (such as small scale congestion relief projects, signal timing/coordination
and ramp metering, and funding matches for larger projects).
$16 million distributed to cities/towns/county on a pro rata basis related to vehicle
registration. A jurisdiction may use these funds for the same types of projects outlined in
the above two categories.
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MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION IN SUPPORT OF THE SANTA CLARA COUNTY
TRAFFIC RELIEF LEGISLATION FOR THE VEHICLE REGISTRATION
SURCHARGE SENATE BILL (SB680) SPONSORED BY THE SILICON
VALLEY MANUFACTURING GROUP (SVMG)
MARCH 14, 2005
Local public officials who have endorsed this bill concept to date:
• Chair and member of the Santa Clara County Board of Supervisors, Liz Kniss
• Santa Clara County Supervisor Don Gage
• VTA Board Chair and Los Gatos Council member Joe Pirzynski
• VTA Board Vice Chair and San Jose Vice Mayor Cindy Chavez
• San Jose Mayor Ron Gonzales
Attachment 2 is a letter from State Senator Joe Simitian encouraging communities to support S13680.
CONCLUSION:
Staff recommends that Council support the Santa Clara County Traffic Relief Legislation for the
Vehicle Registration Surcharge Senate Bill.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
Los Gatos' share of the $16 million pro-rata pool would represent approximately $33,000 per year,
based on an estimate of vehicle registrations, which could be appropriated for traffic calming, ITS
improvements, or other capital projects which meet the criteria of the category.
Los Gatos can fiirther submit grant proposals to VTA, the granting authority, for project Rinding
meeting the criteria in the competitive pool. This pool may have a cap on any one project, but this
will be determined at a later date when the bill has been passed.
Attachments:
1. Resolution in support of the Santa Clara County Traffic Relief Legislation for the Vehicle
Registration Surcharge Senate Bill.
2. Letter from State Senator Joe Simitian
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
IN SUPPORT OF THE SANTA CLARA COUNTY TRAFFIC RELIEF LEGISLATION
FOR THE VEHICLE REGISTRATION SURCHARGE SENATE BILL (SB680)
SPONSORED BY THE SILICON VALLEY MANUFACTURING GROUP (SVMG)
WHEREAS, Santa Clara County is a county within the State of California; and
WHEREAS, Santa Clara County is the largest and most populous county in Northern
California with highly urbanized, rural, and mountainous areas; and
WHEREAS, the locally owned and operated County Expressway system, local arterials,
and rural county roads are the workhorses of Santa Clara County's road system, carrying the vast
majority of all trips by all modes other than rail; and
WHEREAS, the Caltrain rail system relieves pressure on Santa Clara County's local
roadway by replacing medium distance auto trips; and
WHEREAS, the County Expressways, local arterials, county roads, and the Caltrain
system are in need of improvements, modernization, and upgrades to the traffic signal systems; and
WHEREAS, the lack of adequate litter control and landscaping restoration on the state
highways and County Expressway systems is creating aesthetic and environmental problems;
WHEREAS, state and federal funding for transportation projects have been inadequate to
meet Santa Clara County's transportation needs; and
WHEREAS, current local funding sources are inadequate to fill the gap; and
WHEREAS, other counties within the State of California have enacted temporary
supplements to the Vehicle Registration Fee (VRF) levied on vehicles registered within their borders
to meet local transportation needs; and
WHEREAS, (SB 680) proposes a five-dollar ($5) supplement to the VRF on vehicles
registered within Santa Clara County for a term of eight (8) years; and
WHEREAS, (SB 680) proposes to use these fiends for local transportation system
improvements on the County Expressway System, local arterials, rural county roads, the Caltrain
system, and for litter control and landscape restoration on state highways and County Expressways;
and
WHEREAS, the Town of Los Gatos is a Town within Santa Clara County; and
WHEREAS, the Town Council of the Town of Los Gatos wishes to submit a formal
resolution of support to the State Legislature for (SB 680).
NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Los
Gatos, County of Santa Clara, State of California, that the Council supports the goals of (SB 680)
and encourages the California, State Legislature to adopt and the Governor of California to sign (SB
680) into law.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the day of , 2005, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS
ABSENT:
ABSTAIN:
SIGNED: MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMIl ISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
STATE CAPITOL Tatifurni x &fafr ntate MAR 4 2005
SACRAMENTO, CA 95814 "
(916) 445.6747 SENATOR _ S. JOSEPH SIMITIAN
ELEVENTH SENATE DISTRICT, .
March 9, 2005
The Honorable Mike Wasserman
Mayor
Town of Los Gatos
110 East Main Street
Los Gatos, CA 95030
Dear-, erman,
At the.request of local.business and community leaders,, I have. agreed to carry legislation
that would provide an opportunity for the communities of Santa Clara- County to address
some of the top priority transportation needs in our county. This bill (SB 680) would
authorize (but not require) the Valley Transportation Authority to impose a $5
(maximum) surcharge on vehicles registered in Santa Clara County to fund primarily
congestion management projects, with a sunset provision for 2014. Based on 1.4 million
registered cars (2004 statistics), a $5 registration surcharge would generate approximately
$7 million/year or $56 million over eight years (2006-2014).
As you may know, last year I carried a similar bill for the City/County Association of
Governments of San Mateo County, AB 1546, which was signed into law by the
Governor. We were successful because every city in the county was behind the effort.
This demonstrable support was critical.
The request for your support of this bill will come forward from your staff in the form of
a resolution presented to your City Council. In order to ensure consensus to the greatest
degree possible an: expenditure framework was developed by a technical advisory
committee'. which, included staff from all Santa Clara County's cities, the county, VTA
and SVMG, the bill's sponsor. The expenditure framework will also be shared with you
at that.time. The bill also includes a required 2/3 vote of the VTA board before the
surcharge may be imposed and the expenditure plan finalized. The 2/3 requirement will
ensure consensus support for the fee itself, and the equitable county-wide use of funds.
Page 2
I request that your Council approve a resolution in support of this county-wide
transportation effort.
Thank you, and should you have any questions, please feel free to contact Sarah
Rosendahl in my district office at (650) 688-6384.
Sincerely,
. Jo ph Simitian
en or, Eleventh District
cc: City Council Members
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