HomeMy WebLinkAbout1988-01-05; City Council; 9260; SB 140 and 176 Deddeh Support0
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DEPT. R/AG
SB 140 AND 176 (DEDDEH) -SUPPORT
DEPT. HD.l~ '
CITYA~
'CITY MGR~--
RECOMMENDED ACTION:
Adopt Resolution No. J>8'-(,p , supporting SB 140 and SB 176
(Deddeh).
ITEM EXPLANATION:
SB 176 (Deddeh) would enact the 1988 Transportation Bond Act
which would authorize the issuance, pursuant to the State General
Obligation Bond Law, of bonds in the amount of one billion
jollars ($1,000,000,000). Proceeds would be used to finance
capital improvements for local streets and roads, state highways,
and exclusive public mass transit guideways. The bill woule
req,~ire the bond act to be voted on at the June 7, 1988 direct
primary election and would require a 2/3 vote to pass. SB 176
would become operative only if SB 140 becomes operative.
SB 140 (Deddeh) provides for matching funds of up to two hundred
million dollars ($200,000,000) annually for up to 50% of the cost
of local highway and exclusive public mass transit guideway
projects. The source of the funds is the 1988 Transportation
Bond Act. Therefore, SB 140 would become operative only if SB
176 becomes operative.
FISCAL IMPACT:
The 1987-88 to Buildout: Capital Improvement Program identifies
in excess of fifty million dollars ($50,000,000) worth of street
projects. Many of these projects may qualify for the above
mentioned matching funds.
EXHIBI~:
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3.
Senate Bill No.
Senate Bill No.
Resolution No.
(Deddeh).
140, introduced by senator De1..deh.
176, introduced by senator Deddeh.
fr-ti, , supporting Senate Bills 140 and 176
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• EXHIBIT 1
AMENDED IN ASSEMBLY SEPTEMBER 11, 1987
AMENDED IN SENATEJUNE.22, 1987
AMENDED IN SENATE APRIL 6, 1987
AMENDED IN SENATE MARCH 9, 1987
SENATE BILL
1D
No. 140.
Introduced by Senator Deddeh
(Principal coauthors: Senators Bergeson and Seymour)
(Principal coauthor: Assembly Member Katz)
( Coauthors: Senators Keene, Marks, and Roberti)
(Coauthors: Assembly Members Stirling ar Eaves)
January 6, 19~7
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An act to amend Sections 14524, 14525, and 14529 of, to add
Sections 14529.2 and 14533.1 to, and to repeal and add Section
14529.6 of, the Government Code, and to add Sections ~
~ 170.5 and 182.5 to, and to add Article 4.3 { commencing
• with Section 163) to Chapter 1 of Division 1 of, and Chapter
15 ( commencing with Section 2560) to Division 3 of, the
Streets and, Highways Code, relating to transportatior ...
. LEGISLATIVE COUNSEL'S DIGEST ''
SB 140, as amended, Deddeh. Transportation: funds.
(1) F.xisting law requires the Governor to propose, and the
Legislature to adopt, an annual state budget. Existing law 0 requires the Department of Transportation to recommend,
and the California Transportation Commission to annually
adopt, a 5-year state transportation improvement plan
containing a list of highway projects and estimates of all sta.te
and federal funds reasonably expected. to be available for
transportatic;n purposes. r---. This bill would require the Governor, commencing with..
~the 1989-90 fiscal year, and biennially thereafter, at the time
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SB 140' -2-
of submission of the proposed state budget., lo submit to the
Legislature a 6-year transportation funding plan containh1g,
at a minimum, (a) a listing of planned expenditur~s for state
highway and public transportation purposes from the State
Highway Account and the Transportation Planning and
Development Account in the State Transportation Fund, (b)
a listing of planned expenditures, by program category, for
each of the 6 successive fiscal years beginning with the
1990-91 fiscal year, ·(c) relevant data used in preparing the
plan, (d) the sources and amounts of state funds needed, and
identification of new revenue sources, including proceeds
from the.sale of bonds, ( e) the amount and d~te of bond sales,
and (f) recommended changes in state and local policies and
procedures necessary to implement the plan. • • •
Tlie bill would require the Legislature, by statute, to adopt
the Governor's plan, with appropriate modifications, as .the
state poli~y relative to transportation programs.
The bill would preseriee declare the intent of the
. Legislature and the Governor to appropriate, other than for
administration, maintenance, and operations, specific dollar
amounts te ee ~preprieted from the State Highway Account
ttHe tfte Tl"flfteportftlieH ~MHJ.ing and De·,elepmeBt 1.eeetmt
fep eaeh ef ~ l988.l89 te 1993/.91, ifteiwJir;e, each .iscal year
for the 6 ensuing .iscal years ftftd r.·1oald deelMe ~ itlteftt ef
the Legtslah:IPe ed tfte Ger;ePHor te apprepriete thMe
amotmts fer -these fiseel yeMS for specified purposes.
The bill would provide for a state-local transportation
program to provide state funds to cities, -counties, and
speci.ied local entities for highway and exclusive public mass
transit guideway projects pursuant to a spec.ied procedure.
The stafe funds allocated under this program would not be
subject to the county group and the county allocation'
requirements. I
The bill would require that funding estimates and proposed
expenditures for the state transportation imp:r:ovement
program, prepared by the departme~t and the commission,
be consistent with the amounts proposed for appropriation
and with other specified requirements, · I
(2) Under existing law, the state transportation (
improvement program adopted by the commission is ,,1,
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r~quirec;l to contain, amo~g ether things, recommended
annual expenditures from the State Highway Accow1t 'by
program category for the succeeding 5 fiscal years and is
required to. be cpnsistent with the esthnate . of 1available
revenues. • ·. . •
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1This bill would delete tftftt requiremeat those requirements
and would, instead, limit the projects which could be included
in the adopted state transportation improvement program to
' those included in the immediately prior program and projects
I submitted • to the commission by . the department,
, transportation planning agencies, and county transportation
; commissions for inclusion in the program. The bill would also -
: spec:fy that the program shall be a prioritized listing of
projects consistent with designated funding levels rather than
a schedule for project delivery, and would permit the
commission to adjust the project cost for any project included
in a previous program only at the department's request.
, (3) Under existing law, funds are appropriated from the
State Highway Account for state highway purpo~es and for
e?(clusive public mass transit guideway purposes. ,
' This bill would restrict the use of State Highway Account
funds to (a) state highway system purposes, as specified, (b) •
matching funds of up to $200,000,000 annually for up to 50%
of the cost of local highway and exclusive public mass transit
guid~way·projects, built to state standards and ip.eeting other
specified criteria, and ( c) payment of principal: of, and
interest on, state transportation bonds. •
(4) Existing law specifies priorities for expenditure of.
ftµids from the State Highway Account.
' This bill would enact a revised schedule of priorities for
~xpenditure of State Highway Account funds.
(5) Unaer exfsting ~ tfte aepartmeat ha! establis~ca
tr0Hs13ortaaoa eistrids.
!fhis eil:l would rcqaire Ute aepM'tment flt esteliffl e tffltt
ift eaeh tf8B9portaaoa eistriet fl> eHpeeite ftfttl· MSist: 11t:thlie
, ftfttl priYete eP..atics •r1hieh tise theiP ewn fltft89 flt fflftffe
impr,y.•emcB:ts eP eoaB:eeaons flt tfte etMe higw,vey SfSlem ift
aeeoraOHee ~ appliea&le Mete steaards, 8fttl seejeet te -the
aepartmeftt's 8fJf)f0'+'fli, • •
' :· ~ Under e~ting law, expenditures of the d~partment.
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are recorded on an accrual basis. ,
This bill would authorize the department to finance ·
projects which will not be completed in a fiscal year on a cash .
basis if the department has sufficient unused bonding:
authority not earmarked for any other project.
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(6) The bill would become operative only if, and at the
. , same time that, SB 176 becomes operative.·
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. This act shall be known and may be
2 cited as the ~ 1988 Tran.c:iportation Improvement and·
3 Reform Act. , -1
4 SEC. 2. (a) The Legislature makes the following
5 findings and declarations:
6 (1) An efficient transportation infrastructure is vital to
7 the economic well-being of the state iµid is essential for.
8 the daily activities of all the people. • 1
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9 • (2) • Current resources are not adequate to meet the-:
10 growing needs for the maintenance, operation, and•·
11 improvement of the state's transportation infrastructure. •
12 (3) Transportation infrastructure is within 'the state
• 13 budget's highest priority category and should maintain its
14 pro rata share of the appropriations limit under Article·.
15 XIII B of the California Constitution. •
16 (4) Responsibility for providing a better
17 transportation system is a joint venture of federal, state, •
18 and local governments and the private sector:
19 (5) Transportation projects require years of advance.
20 planning before being implemented, and the long-range
21 project development work cannot proceed without a I
22 long-range financial commitment.
23 (6) An incre~ing number of transportation"projects'
24 call for joint financing by state and local governments as
25 well as by the private sector. •
26 (7) The state's role in firiancing transportation
27 projects needs to be defined so that local governments (
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1 can better plan and manage their growth pa,tterns and
2:;. better assess their financial needs. • ' • • 1 • ··1 ' 1
3. :~.' (8) • User fee revenues have not kept up with inflation;
4·l the average annual gas tax revenue generated by a car in •
; 5 · 1973 was $53.42, compared to the averege annual gas tax ,
• 6 revenue gene.rated by a car in 1984 of only $21.37 in.1973
• 1··H dollars. • 1 1 • • • • • •
. 8 (9) With tile state•s population projected to grow by
, 9.. about six· million by the year· 2000, preparing the
10 transportation infrastructure for the year 2000 will
, 11 require major resource commitments by the people of
12 the state. .. • • •
13 • (10) Financing transportation programs through user
14 • fees is an equitable and efficient method of financing and
. 15 • should be employed to the maximum extent possible.
16 . (11) Due to the enormous costs and the long-range
17· • benefits of many transportation projects, bonds should be
18 used to augment and stabilize the .transportation
19 '' program. . • • •
20 • • (b) Therefore, it is the intention of the Legislature,
21 through the enactment of this act: •
22 • 1 (1) To develop a long-range financial commitment for
23 ·,. ft'&B91'Bl'tetiot1 WHlt ti!e aetir1e :pMtieipMien ef the
1~24· Gor;cemol' aBe the LegislMttl'e ftftEl esteelishee hieftfti&Yy '
~25··· thl'ottgl\ tile eftaetment sf a stemte. transportation.
26 ·: • (2) · To ' reform transportation plantµng and
9:1 programming procedures and to delineate state and local , __
28 transportation responsibilities and to provide additional •
29 financial resources.
30 i.:sEC. ·3, • Section '14524 of the .Government Code is
31 amended to read:
32•'1" 14524. Not later than October 15 of each year, the
33 department . shall submit , to the commission a
34 recommended annual and five-year,• estimate of all
35 federal and state funds available for transportation
36: purposes in ·order that the commission may provide
. 37 estimates pursuant to Section 14525. •"1 ·:· •
38 The estimate shall be on the basis of state .
"'\ 39 transportation: districts, and • the boundaries of the •
.;40 • transportation-·1 planning agencies • and · . county • f •
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transpc;>rtation commissions in urbanized areas over(
50,000 in population. The method by which the estimate I
is arrived at, including the way in which state I
discretionary funds are to be estimated, shall be
determined by the ~ommission in consultation with _the
department, the transportation planning agencie~, and L;
the county transportation commissions. The estimate~
shall not include federal discretionary grants or funds. I
The estimate shall be consistent with the financial plan
specified in Section 164 of the Streets and Highways
Code, and the estimated total of all state and federal
funds available for each program category for each fiscal
year shall not exceed the amounts specified in Section 164
of the Streets and Highways Code.
SEC. 4. Section 14525 of the Government Code js
amended to read: •
14525. Not later than November 15 of each year, the
commission shall adopt and provide, to the transportation
planning agencies and county transportation
commissions, an annual and five-year estimate of all state {
and federal funds reasonably expected to be available to
each region for transportation purposes. •
The commission may amend the estimate following
consultation with the department, transportation,
planning agencies, and county transportation~
commissions to account for· unexpected. revenues or
other unforeseen circumstances. •
The estimate shall be consistent with the financial plan
specified in Section 164 of the Streets and Highways
Code, and the es.timated total of all state and federal
funds available for each program category for each fiscal
year shall not exceed the amounts specified in Section 164
of the Streets and Highways Code.
SEC. 5. Section 14529 of the Government Code is C
ar .. ended to read:
14529. • (a) Mter taldng , into consideration the
existing • adopted state transportation improvement .
program, the proposed state transportation
improvement program submitted by the department .
pursuant to Section 14526, the regional transportation(
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/ .1:1 r ., ~ptovement ~rograms submitted p~r~uan~ to Section
~ • .. 2 • 14527, and comments submitted pursuant to Section
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:, , 3 14528, through the use of public hearings, the commission
-A shall adopt and submit to the Legislature .and Governor
: ·: 5 by July 1 of each year, a five-year state transportation
., '~ 6 improvement program including all fund'i to be allocated
' : ~ • 1 "by the ,commission consisting 9f: . . • >' •. •
.&, * . ·9 (1) The estimate of available funds from state and-
10 federal sources and associated constraints fc.
1 : 11 transport~tion improvement in the state. ··'12· ~ • , '• • •'
' 13 (2) All major projects; . as determined by the
14 . commission, to be funded from slate transportation funds
15 • allocated by the commission during the succeeding five
I 16 fiscal years, For any highway project that will not be f . 17. ~ompleted within the five-year period, the commission
s '. 18 shall estimate the amount, and identify the source, of
f
. 19 funds required to complete the project and th~ expected
, 20 completion date. •· •
, 21 ~ •
1 22 (3) A summary of expenditures for minor projects, as
l \-23 determined by the commission, to be funded from state
:' • • 24' transportation funds allocated by the cqmmission during '· l . : • µi~c~eeding five fiscal years. 1
: . • • . • • ~ -•
' 27 ( 4) The projects included in the adopted state
' 28 transportation improvement program shall be limited to
29 those projects that are included in the immediately prior
1
• 30 state transportation improvement program, and the
. r ·, 31 'projects submitted pursuant to Sections 14526 an.d 14527.
; :'~2 -(et '
33 . (5) Any additional action and . information
'· '34 determined by the commission to be relevant to the
; 35 successful implementation of the adopted state
: : • 36 transportation improvement program.
: ·' • 37 !Rte Me\ 3 ffllftspertaaeft itnpre;1eme1tt pregt'ftffl 8ftftll
• "38 ~ eeftsistent with the estima~e of av•ai.lele re11enees.
~ ·39 • (b) The state transportation improvement program r·· 40'• shall be a prioritized listing of projec~s and shall be
SB 140 -8-
1 consist~nt with the funding levels specified in Section 164 (
2 of the Streets and Highways Code. The state •
3 transportation improvement program ·shall not be.
4 considered as a schedule for project delivery.
5 (c) The commission may adjust the project cost for
6 any project that was included in a previous state
7 transportation improvement program only at the request
8 of.the department.
9 SEC. 6. Section 14529.2 is added to the Government
10 Code, to read:
11 14529.2. Prior to the adoption of the state
12 transportation improvement program, the commission
13 shall review the department's project delivery
14 performance. The commission shall publish its findings
15 and hold at least one public hearing.
16 Based on its findings and the information obtained
17 during the public hearing, the commission may make a
18 determination that the department has not made
19 reasonable progress with project delivery and that it is
20 unlikely that the department can accelerate its project
21 delivery schedule to reasonably accommodate the
22 adopted state transportation improvement program.
23 Upon making this determination, the commission may
24 allocate State Highway Account funds for expenditure by
25 counties for development, right-of-way acquisition, and
26 construction of state highway projects included in the
27 state transportation improvement program.
28 The commission, in making an allocation under this
29 section, shall seek the recommendation of the
30 transportation planning agency or county transportation
31 commission within whose jurisdiction the county is ,
32 located. Thi~ commission shall specify the amount and the
33 purpose of the allocation. The commission may request,
34 and the ·county shall accept, an audit of funds allocated to
35 the county under this section. ,
36 SEC. 7. Section 14529.6 of the Government Code is
37 repealed.
38 SEC. 8. Section 14529.6 is added to the Government
39 Code, to read: •
40 14529.6. (a) Funds in the State H_ighway Account in,
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~ . 1 the State Transportation Fund shall be programmed,
· 2 budgeted, and expended to maximize the use of federal
. 3 funds and shall be based on the following sequence of
4 priorities: •
5 (1) Operation, maintenance, and rehabilitation of the
6 state highway system.
7 (2) Safety impro".'ements where physical changes,
8 other than adding additional lanes, would reduce
t , 9 fatalities and the num}?er and severity of injuries.
i 10 • (3) Operational improvements such as auxiliary Ian~·
; i i1 ramp metering, and other physical changes where tlh,
1 12 system capacity can be enhance~ without adding
\ 13 additional lanes.
' : 14 (4) New facilities .
. ! • 15 (5) Compatibility improvements, including l 16 landscaping and noise attenuation barriers. •
' . 17 (b) For the state . transportation improvement
• 18 program, the deparbnent shall recommend, and the
19 commission shall include, to the extent feasible, projects·
20 in all categories listed in subdivision (a).
21 (c) Subject to Sections 188 and 188.8 of the Streets and
22 Highways Code, projects included in the state
23 transportation improvement program shall be based on
24 objective criteria, including, but not limited to,
25 cost-benefit analyses. The objective criteria used shall bP
26 statea for each project and shall accompany the sta •
27 transportation improvement program ..
, : 28 (d) The primary objective of the State Highway
29 System is to Facilitate interregional travel and commerce.
30 • New facilities shall be programmed consistent with this
31 • objective, and the department and the commission shall
32 assign tbc highest priority to those projects that facilitate
33 interregional travel. 1 34 SEC. 9. Section 14533.1 is added to the Gov~rnment
:i 35 Code, to read:
1 36 14533.1. The department and the commission shall
37 prepare their fund estimates and the state transportation
38 improvement programs based on funding levels specified
39 in Section 164 of the Streets and Highways Code.
~ 40 The commission shall not include any project in the
SB 140 -10-
1 state transportation improvement program or make any I
2 commitment whatsoever that exceeds funding . levels
3 specified in Section 164 of the Streets and Highways Code
4 er that ,eqttires fflftding ee)1orl6 8seti)1Cftf9 liMeftin~.
5 The department and the commission shall use an
6 inflation rate that has been established . by the
7 Departmeni of Finance and concurred to by the I
8 Legislative Anlilyst. If the Department of Finance and
9 the Legislativ~ Analyst cannot agree on an inJJation rate,
10 the rate used by the commission shall be the average of
11 the two estimates.
12 eeetieft. Hower;eP, ~ depaPtment fftft)' i,roeeed ~
13 prelimiH:M)' engineering werlt EM-prejeets ee)'end ~
14 'ft9eftl ye8ft if it ft89 stdlteient fllft89 tHte i,ersonnel in it9
15 et:1eget Be)'Oftd tfte9e Heeded fer prejeets thM ere
16 ineladed. in tfte state ~, impreYement
17 pregrftffl:. •
18 Preliminary engineering werb en prejeets net iflelt:1eetl
19 ift ~ stMe tresperta:tion improYelftent pregrllffl i9 net
20 a eofftfflilment er 4:ftEl department er~ eMftffltssion ~
21 the prejeet will Be fflftdea in· 8tl88Cf!t1Cftt state
22 tr&ftsportation impro¥emeftt f1rogrMnS.
23 ~ departmeftt anti~ eofflfftission ohall ffll8 M lea9t
24 a 5 pereent inflation l'ftle ifl detennifting the nec'essary
25 capital otttla)' fer prejects. I
26 BEG -¼9: Secaon ¼31-:3 is eetled. te the. ~treets anti
27 High"llft)'S ~ te fetlffl
28 .J:a¼-:3: ~ department ffla:11 estaelish: a tlftit! ift eeeh et
29 HS transportation distriets t~ e1t:pedite ene ft98ist flttelic Of
30 prir;ate entiaes whieh tHJe -tfteir ewn ftffltis te fflftffe
31 impre·1emenffl er connections le the state 'higwl,11:ty
32 srstem. !:fhe department fflftll ee·1elop anti fflftffe
33 ftltlailahle all ~ ene s13eeiftcatiofts ~ are
34 necessarr to protect~ state's iB:tercst anti te eftsttre tftM
35 the desigft fttMI censtrttctieft et these prejeds ere
36 consistent witft applieaele etMe RM federal procedttres
37 Md eftgifteering standartls tt9Ctl ~ the department.
38 -Awt eftaty plMB:iftg te fflttffe ifflpf61'/CmSftffl eP
39 eenftecaens te the ~ 'highwa)' fl)'Stem shall eenstraet
40 ¼hem in accer~ftftee witft the stanaards &M. speeiliealtens (
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. • '1 •1 pre...tc;)ed h)' the ElepMeent. ~ eRttt,a 8ft8H saefflit
2 plane ftfttl speeiBeaaens fer the impre'ICmertt ep
, 3 1 eeBneelie" prejeet M +lie ElepMhneftt • ier apt)reival atttl
.4''"9MD ee • !'e8pOft8iele MP p,eearing · eQ i,rej~et
. :~, , deYClepment werlt ftfttl fer eaftslfudieft. • ,
6. . !:RM, eepa,btteftt ahell aeeept tfte eenslfueted prejeet ti
• 1 7 '~ is eenstNeted ift aeee,Eleee .with tfto appre.-,ed ple9
• 8 .. ftBft !fl"eeifieaeens. : , •
·9 • BEG~
'. • 10 SEC. 10. Article 4.3 (commencing with Section 163)
•
1 11 is added to Chapter 1 of Division 1 of the Streets and
• 12 Highways Code, to read: 13·. · •
14 ' • • Article 4.3. Transportation Funding Plan 15-t • • · · •
• 16 '. 163. • (a) Commencing with the 1989-90 fiscal year
17 and biennially thereafter, the Governor shall, at the time
18 of submission of the budget, submit to the Legislature a
19 . six-yenr transportation funding plan. The plan shall be a '
' 20 statement of the Governor's policy and intent relative to
• 21 • the funding of transportation programs for the six: years ..
22 following the budget year. The Legislature, by statute,
23 shall adopt the plan with appropriate modifications as the
24 state policy relative to transportation-programs.
25 (b) The plan submitted by the Governor shall, at a
. . 26 minimum, do all of the following: .
1
1 • 27 (1) Include a listing of planned expenditures by
I • 28 program categories pursuant to Section 167 from the
29 State Highway Account and the Transportation Planning
30 • and Development Account in the State Transportation
' 31. Fu11d fot state highway and public transportation
• 32 • purposes. •
) 33 {2) Include a listing of planned expenditures by
· 34 . program categories pursuant to Section 167 for each of
Y 35 the six successive fiscal years, beginning with the 1990-91
J . 36 fiscal year for the first plan.
f
. 37 • (3) Specify all relevant criteria used in preparing the
38 plan, including, but not limited to, the estimated
)
: 39 available federal funds, the state's economic conditions,
40 the population growth rate, and the inflation rate.
SB 140 -12-
1 (4) Specify the sources and amount of state funds
2 needed and, if current revenue sources are not adequate
3 to fully fund the plan, identify new revenue sources;
4 including proceeds from the sale of bonds, and f the
5 amount available therefrom. • 1
6 (5) Specify the amount and dates for the sale of any
7 bonds if necessary.
8 , (6) Specify all changes in state and local policies anc
9 procedures that need modification in ord~r to implement
10 the plan.
11 (c) The plan shall not include specific individua
12 projects and the Legislature shall not enact legislatior:
13 containing specific individual transportation projects.
14 164. The Legislature hereby declares ' that th(
15 planning and programming of transportation project:,
16 requires a degree of certainty concerning the availabilicy
17 of funds in future years. ·Therefore, the Legislature and
18 the Governor declare their respective intent tc
19 appropriate from the State Highway Account tht
20 following funcJ.:S in the ensuing six fiscal years:
21 (a) For administration, maintenance, and operation,
22 the necessary amount consistent with inflation and use.
23 (b) For rehabilitation, three hundred fifteen million
24 dollars ($315,000,000) annually. '
2.S (c) For local assistance, one hundred ninety,million
26 dollars ($190,000,000). annually.
21 (d) For capacity enhancement, one billion one
28 hunded million ciollars ($1,100,000,()()(J) annually.
29 (e) For noise attenuation barriers, fifteen million
30 dollars ($15,000,000) annually.
31 . (£) For exclusive public mass transit guideways,
32 seventy million dollars ($70,000,000) annually.
33 (g) For state-local transportation demonstration•
34 projects, two hundred million dolla,s ($200,000,000),
35 annually.
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SB 140
1
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°ffllft!IPettatien FlaMtins end Be~ elepment ~
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9 The funding levels specified in the ~ set fel"th Ht
10 this section are based on the best estimate of federal
11 fun,ds that will become available to the state as well as the
12 best estimate of economic activities and needs for the
13 future. It is intended that these funding levels be adhered
14 to and that adjustments be made in state resources to th~
15 extent necessary to meet these levels. • • •
16 SEGiil: •
17 SEC. 11. Section 170.5 is added to the Streets and
18 Highways Code, to read:
19 170.5. Notwithstanding Section 13302 of the
20 Government Code, the department may, with respect to
21 any project which will not be completed within a fiscal
22 year, fmance the project on a cash basis if the department
23 has sufficient unused bonding authority not earmarked
24 for any other project.
25 8EG-¼&-
26 SEC. 12. Section 182.5 is added to the Streets and
27 Highways Code, to read:
28 ~ -Ear It is the i.Bteftt ef the Legislature, ift
29 182.5. It is the intent of the Legislature that the
30 proceeds of any voter-approved bonds or any other .new
31 revenues made available in 1988. be used to bring the
32 state transportation improvement program into
33 compliance with the requirement of Section 188.8 and !-o
34 initiate a state-local transportation • demonstration
35 program. The commission shall not authorize t)le sale of
36 any bonds, and the Treasurer shall not sell any
37 transportation bonds, unless the state transportation
38 improvement program adopted by the commission is in
39 full compliance with the requir~ments of Sections 188
40 and 188.8.
-15-SB 140
') 1 The proceeds of any voter-approved state bonds or any
2 new. state transportaton funds shall be used to comply
3 with the.financial plan in Section 164. The department
. 4 and the commission shall i11form the Legislature
5 . whenever the revenues available are not adequate to
6 comply with Section 164 ..
) 7 SEC.13. Chapter 15 (commencingwithSection2560)
. 8 is added to Division 3 of the Streets and Highways Code,
,. 9 to read:
1 10 • .
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CHAPTER 15. STATE-LOCAL TRANSPORTATION
DEMONSTRATION PROGRAM
. 2,.;6(}. (a) It is the intent of the Legislature to initiate
a new state-local partnership for financing transportation
improvement projects. Locally funded and constructed
highway and exclusive public mass transit guideway
projects will provide economic and transportation
benefits for th~ state and, therefore, it is appropriate to
provide state matching funds for these projects.
(b) The state-local transportation demonstration
program is hereby created to. carry out the intent i11
subdivision (a). The Legislature intends to appropriate a
total of three hundred milb'on dollars ($300,000,{}()()) for
the 1990-91 fiscal year to implement this program. It is
also the mtent of the Legislature to • use th
demonstration program as a basis for an ongoi11g program-
beyond the 19!J()-91 fiscal year. .
P-561. For purposes of this chapter:
(a) "Applicant" melQJs a city, a county, or any local
entity that is authorized to impose taxes or fees and that
has responsibility for constructing highways or exclusive
public mass transit guideways. . . •
(b) "Eligible ·project" means· a local road, a state
highway, or an exclusive public mass transit guideway
improvement project that meets all· of, the fo}lowing
conditions: •
(1) Upon completion of the project, it would
constitute a usable segment that would increase the .
capacity of the ·highway or guideway or would extend
' .
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SB 140 -16-
l service to new areas.
2 (2) The applicant has committed, or is capable of
3 'committing, to pay the local share to complete the
4 project.
5 (3) The project is not receiving any other·.state £mids.
6 (4) 111e applicant has completed, or is capable of
7 completing, all project development work at its own
8 expense so that the contracts for the project can be
9 awarded no later tl1an June 31, 1991. J
10 (5) Improvements ta state highways are consistent 1
11 with state and federal standards, are designed to i
12 minimize Jong-term maintenance costs, and are, ;
13 approved by the department. ~
14 (c) "Local fund" means revenues from any locally
• 15 imposed tax or fee. .;
16 (d) "Local share" means the ·total cost of completing f
17 the project less any state matching funds applied for ••
18 through this demonstration program and any Federal t
19 funds. f'
20 (e) "State share,, means tl1e amount of state funds 1
21 applied for and in 110 case shall it exceed local share. The
22 state share is not subject to the requirements of Sectio11s
23 188 and 188.8. •
24 2562. The state-local tr:ansportation demonstration
25 program shall be implemented by the department and
26 the applicants unper the 'following procedures:
21 (a) Applicants shall submit eligible projects to the
28 department not later than June 30, 1989.
29 (b) The department shall review the applications for
30 consistency with the requirements of this chapter ai1d
31 shall compile a list of all eligible projects hot later than
• 32 December 31, 1989. If the total state share for eligible .1
33 projects exceeds three hundred million dollars •
34 ($300,000,000), the department shall compute the pro
35 ra.ta share of state funds to be available so that each 1
36 eligible project would receive the same ratio of state ~
31 share to local share. • • , ·,
38 (c) Not later than April 1, 1990, each applicant shall .-
39 inform the department whether or not it can proceed
9
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40 with the project with the lower state share. The .
I
-·11-SB 140 •
I·· 1 department shs.ll compile a new list· of eligible projects
. · 2 consisting of those projects' that (1) were included in the
3 • original list, and (2) that the applicBD:t has indicated it can
. 4 proceed with the lower state shart:. •
5 (d) Using the new rate established pursuant to
6 subdivision (b) and the new list established pursuant to t •· 7 subdivision (c), the department shall compute the
8 matching funds necessary and shall so inform the
9 f.tegislsture not later than May 1, 1990. • · :-io (e) The Legislature intends to appropriate -
, 11 maximum of three hundred million dollars ($300,()()(),00lJ1-
: 12 by june 30, 1990, for this program.
• • . 13 (£} The applicant shall let construction contracts not,
. 14 later than Jwie 30, 1991. . 1
15 (g) The funds appropriated shall be spent not later
16 than June 30, 1993.
17 eH&etiftg tMs seetien, te define tlte Pele ei the etMe
\ 18 relMtYe te fflfttfe imp,e,..emenm M the M&te highrnay
19 S)'Stem se M leeal ger,efftlfteftts ean l)feeeeti Wffh ~
~ 20 indirAettal lee t18e plttft9 Mt& tne relates tf&n5permtien
. 21 iffl:prer1emenm neeEled f.el' their Mee ef imhtenee.
, . 22 ~ F-unel!I ift talte ~ Higlt,·,·ay &eeeunt 8fttlD ee
' 23 , pf8gt'8fflffl:Cti, btulgetea, Mt& e~eneee fer the fellewiftg
24 ftftff'l highway system 1mrpeses ~
) ' 25 -fl-t l..cdnmtistratwe pMpeses ei -~ eepartment ~
26 tftc CeftHMl!ft8ft,
• 9:1 • ~ gperatien, mfti1ttenMee, ea rehaeilitanen.
. 9.8 ~ Gempletien of all fttlly f11ndee prejeee in the W88
29 8taffl g;,ftft9f'OPtaneft: lmpre•.,rement pregram aa aeeptea
•. 30. ~ the eefflfflissieft en Jttne 06; ¼888: ~ eemmit:me11:t
. 31 eees BM melt1de parHftll.y ftffldee prejeets etl prejeets
:. 32 wltose seepe is OHf'anded l,eyena ~ specified ift talte
33 ~ pregtam. !Rte percentage ef ~ding 9)1 Yle M&te
• 34· fflftD BM es increased fer aft)' prejeet ftffl&ee, in witele et'
, 1 33 . ift part; er aleeal ge,..efftffletttal er prif+•ate entity, eP ~
' 36 flt Gempletien oE Mghwa)'S itt tho National S)satem. ef
37 IBteremte ed. Qsfe1tse ~
• • 38 -(5r ~ anti o:perational HftlJfOf+'ements M hignwafs
39 with fear e, mere lenes enEl thCH." interellanges. ¥el'
40 pMpeses ef ¼hi, sectien, ~ eP 011erationel
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-19-SB 140
i .. • : ,((,r ~ eonstflteaoft eefttraet fer the prejeet is
i.2 eH"eetea tHH'fflg tile HSeal ,-eaP in. 'llftieh the prejeet
. 3 Jeeewes feeiftg. . • •
4 • ' ~ ~ paymeftt M principal eF; &ft6 interest 0ft;
, 5 eeft89 tssttea pttt'9tlltffl t~ Chapter 3 (eo~efteing with
. 6 Seeaon e6Q9r ef Di"Meft a: ."
' 7 SEC. 14. Sections 1 to 13, inclusive, of this act shall
· . 8 . become operative only if, and at the same time that,
9 ,.' Senate Bill 176 of the 1987-88 Regular Session_ become~-
~q .,• opera~ve. ,
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AMENDED IN SENATE JUNE 30, 1987
AMENDED IN SENATE JUNE 18, 1987
AMENDED IN SENATE JUNE 9, 1987
AMENDED IN SENATE APRIL 7, 1981
AMENDED IN SENATE MARCH 9, 1987
m
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SENATE BILL No. 176
Introduced by Senator Deddeh
(Principal coauthors: Senators Bergeson and Seymour}
(Principal coauthor: Assembly Member Katz)
(Coauthors: Senators Keene, Marks, and Roberti)
(Coauthors: Assembly Members Eaves and Stirling)
January 14, 1987
An act to add Chapter 15 ( commencing with Section 2600)
to Division 3 of the Streets and Highways Code, relating to
financing a transportation program by providing the funds
necessary therefor through the issuance and sale of bon<ls of
the State of California and by providing for the handliriw nd
disposition of those funds, and declaring the urgency thereof,
to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 176, as amended, Deddeh. Transportation: bond act.
Under ArHcle XIX of the California Constitution,
state-imposed gas tax and use fuel (diesel) tax. revenues may
be used for public highway purposes and for exclusive public
mass transit guideway purposes, as specified. State-imposed
tax and fee revenues on motor vehicles and on their use and
operation may also be used for those purposes as well as for
state regulation of vehicles used on public highways.
This bill would enact the 1988 Transportation Bond Act
SB 176 -2-
which, upon approval of the voters, would authorize, for
purposes of a program to finance capital improvements for
local streets and roads, state highways, and exclusive public
mass transit guideways, the issuance, pursuant to the State
General Obligation Bond Law, of bonds in the amount of
$1,000,000,000. The bill would require the bond act to be voted
on at the June 7, 1988, direct primary election. The bHI would
also provide that it' would become operative only if SB 140 of
the 1987-88 Regular Session becomes operative.
The bill would declare that it is to take effect immediately
as an urgency statute.
Vote: %. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. (a) The Legislature makes the
2 following findings and declarations:
3 (1) An efficient transportation infrastructure is vital to
4 the economic well-being of the state and is essential for
5 the daily activities of all the people.
6 (2) Current resources are not adequate to meet the
7 growing needs for the maintenance, operation, and
8 improvement of the state's transportation infrastructure.
9 (3) Transportation infrastructure is within the state
10 budget's highest priority category and should maintain its
11 pro rata share of the appropriations limit under Article
12 XIII B of the California Constitution.
13 (4) Responsibility for providing a better
14 transportation system is a joint venture of federal, state,
15 and local governments and the private sector.
16 (5) Transportation projects require years of advance
17 planning before being implemented, and the long~range
• 18 project development work cannot proceed without a
19 long-range financial commitment.
20 (6) An inc~·easing number of transportation projects ,
21 call for joint fmancing by state and local governments as
22 well as by the private sector.
23 (7) The state's role in financing transportation
24 projects needs to be defined so that local governments '
-3-SB 176
1 can better plan and manage their growth patterns and
2 better assess their financial needs.
3 (8) User fee revenues have not kept up with inflation;
4 the average annual gas tax revenue generated by a car in
5 1973 was $53.42, compared to the average annual gas tax
6 revenue generated by a car in 1984 of only $21.37 in 1973
7 dollars.
8 (9) With the state's population projected to grow by
9 about six million by the year 2000, preparing the -
10 transportation infrastructure for the year 2000 will
11 require major resource commitments by the people of
12 the state.
13 (10) Due to the enormous costs and the long-range
14 benefits of many transportation projects, bonds should be
15 used to augment and stabilize the transportation
16 program. 17 (b) Therefore, it is the intention of the Legislature,
18 through the enactment of this act:
19 (1) To develop a long-range financial commitment for
20 transportation with the active participation of the
21 Governor and the Legislature.
22 (2) To reform transportation planning and
23 programming procedures and to delineate state and local
24 transportation responsibilities and to provide additional
25 financial resources.
26 ( c) It is the further intent of the Legislature that any --
27 debt incurred as a result of the adoption by the voters of
28 the 1988 Transportation Bond Act (Chapter 15
29 ( commencing with Section 2600) of Division 3 of the
30 Streets and Highways Code) be retfred as soon as feasible
31 so as to minimize the interest coi:t of the debt to the
32 citizens of the State of Californifl.
33 SEC. 2. Chapter 15 (commencing with Section 2600)
34 is added to Division 3 of the Streets and Highways Code,
35 to read:
36 37 CHAPTER 15. 1988 TRANSPORTATION BOND Ac:r
38 39 Article 1. General Provisions
40
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SB 176 -4-
1 2600. This chapter shall be known and may be cited
2 as the 1988 TransportatiC'n Bond Act.
3 2601. As used in this chapter, the following terms
4 have the following meanings:
5 (a) "Committee" means th1;;> Transportation
6 Improvement Finance Committee created pursuant to
7 Section 2612.
8 (b) "Department" means the Department of
9 Transportation.
10 (c) "Fund" means the Transportation Improvement
11 Bond Fund created pursuant to Section 2605.
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15
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Article 2. Transportation Improvement Program
2605. The proceeds of bonds issued and sold pursuant
to this chapter shall be deposited in the Transportation
Improvement Bond Fund, which is hereby created.
2606. The money in the fund, upon appropriation by
the Legislature, shall be available for expenditure
without regard to fiscal years for state highway and
exclt.!sive public mass transit guideway capital
improvements in accordance with Chapter 2
2a ( commencing with Section 14520) of Part 5.3 of Division
24 3 of Title 2 of the Government Code and for local
25 community transportation capital improvements on local
26 streets and roads, state highways, and those guideway
27 projects.
Article 3. Fiscal Provisions
2610. Bonds in the total amount of one billion dollars
28
29
30
31
32 ($1,000,000,000), er so much thereof as is necessary, may
33 be issued and sold to provide a fund to be used for
34 carrying out the purposes expressed in this chapter, and
35 to be used to reimburse the General Obligation Bond
36 Expense Revolving Fund pursuant to Section 16724.5 of
37 the Government Code. The bonds shall, when sold, be
38 and constitute a valid and binding obligation of the State
39 of California, and the full faith and credit of the State of
40 California is hereby pledged for the punctual payment of
-5-SB 176
1 both principal of, and interest on, the bonds as the
• 2 principal and interest become due and payable.
3 2611: The bonds authorized by this chapter shall be
4 prepared, executed, issued, sold, paid, and redeemed as
5 provided in the State General Obligation Bond Law
6 ( Chapter 4 ( commencing with Section 16720) of Part 3 of
7 Division 4 of Title 2 of the Government Code), and all of
8 the provisions of that law apply to the bonds and to this
9 ehapter and are hereby incorporated in this chapter as
10 though set forth in full in this chapter.
11 2612. (a) The Transportation Improvement Finance ,,~
12 Committee is hereby created. For purposes of this
13 chapter, the Transportation Improvement Finance
14 Committee is "the committee" as that term is used in the
15 State General Obligation Bond Law (Chapter 4
16 ( commencing with Section 16720) of Part 3 of Division 4
17 of Title 2 of the G~>Vernment Code). The committee
18 consists of the Secretary of the Business, Transportation
19 and Housing Agency, the Treasurer, the Controller, the
20 Director of Finance, and the Director of Transportation,
21 or their designated representative. The Treasurer shall
22 serve as chairperson of the committee. A majority of the
23 committee may act for the committee.
24 (b) For purposes of the State General Obligation Bond
25 Law, the California Transportation Commission is
26 designated the "board."
27 2613. The committee shall determine whether it is
28 necessary or desirable to issue bonds authorized pursuant
29 to this chapter in order to carry out the actions specified
30 in Section 2606, and if so, the amount of bonds to be issued
31 and sold. Successive issues of bonds may be issued and
32 sold to carry out those actions progressively, and it is not
33 necessary that all.of the bonds so authorized be issued and
, 34 sold at any one time.
35 2614. There shall be collected annually, in the same
3'3 manner and at the same lime as other state revenue is
37 collected, the sum, in addition to the ordinary revenues
38 of the state, required to pay the principal of, and interest
39 on, the bonds due and payable each year and it is hereby
40 made the duty of all officers charged by law with any duty
• SB 176 -6-
1 in regard to the collection of the revenue to do and O _)
2 perform each and every act which is necessary to collect
3 the additional sum.
4 2615. Notwithstanding Section 13340 of the
5 Government Code, there is hereby appropriated from
6 the General Fund in the State Treasury, without regard
7 to fiscal years, for the purpose of this chapter, an amount O __)
8 equal to that sum annually necessary to pay the principal
9 of, and the interest on, the bonds issued and sold pursuant
10 to this chapter as the principal and interest become due
11 and payable.
12 2616. Money may be transferred from the fund to the
13 State Transportation Fund to reimburse the State
14 Highway Account for expenditures made subsequent to
15 the adoption of this chapter by the voters for the purposes
16 of state highway and exclusive public mass transit
17 guideway capital improvements in accordance with
18 Chapter 2 ( commencing with Section 14520) of Part 5.5
19 of Division 3 cf Title 2 of the Government Code as
20 specified in Section 2606. Q_,
21 The aggregate amounts that xµay be transferred under
22 this section shall not be in excess of amounts appropriated
23 by the Legislature from the fund for that purpose, and
24 there shall be no transfers made from the fund to the 0
25 State Transportation Fund for local community
26 transportation capital improvements on local streets and
27 roads, state highways, and those guideway projects.
28 2617. The board may request the Pooled Money
29 Investment Board to make a loan from the Pooled M,mey
30 Investment Account, in accordance with Section 16312 of
31 the Government Code, for the purposes of carrying out
32 this chapter.
33 The amount of the request shall not exceed the amount Q
34 of the unsold bonds which the committee has, by ~-·
35 resolution, authorized to be sold for the purpose of
36 carrying out this chapter. The board shall execute those
37 documents required by the Pooled Money Investment
38 Board to obtain and repay the loan.
-39 Any amounts loaned shall be deposited in the fund to O
1r\ 40 be allocated by the board in accordance with this chapter.
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-7-SB 176
1 2618. All money deposited in the fund which 'is
2 derived from premium and accrued interest on bonds
3 sold shall be reserved in the fund and shall be available
4 for transfer to the General Fund as a credit to
5 expenditures for bond interest.
6 2619. The Legislature hereby finds and declares that,
7 inasmuch as the proceeds from the sale of bonds
8 authorized by this chapter are not .. proceeds of taxes" as
9 that term is used in Article XIII B of the California
10 Constitution, the disbursement of these proceeds is not
11 subject to the limitations imposed by that article.
12 2620. The Department of Transportation shalJ?·~•..,~
13 responsible for the administration of all money in .. &1e
14 fund. In consultatfan with the Treasurer and the Director
15 of Finance, the department shall establish the procedures
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17
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19
20
necessary to ensure compliance with all state and federal
laws pertaining to the sale and use of general obligation
bonds.
c~
SEC. 3. Section 2 of this act shall take effect cpon the
adoption by the voters of the 1988 Transportation Bond
Act, as set forth in Section 2 of this act.
SEC. 4. Section 2 of this act shall be submitted to the
voters at the June 7, 1988, direct primary election in
accordance with provisions of the Government Code and
the Elections Code governing submission of statewide
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measures to the voters. •
Notwithstanding any other provision of law, all ball.~ts
of the election shall have printed thereon and in a sq. __ ,·e
thereof, the words: " 1988 Transportation Bond Act," and
in the same square under those words, the following in
8-point type: "This act provides for a bond issue of one
billion doJlars ($1,000,000,000) f::o provide funds for capital
improvements for local streets and roads, state highways,
and exclusive public mass transit guideways." Opposite
the square, there shall be left spaces in which the voters
may place a cross in the manne1 required by law to
indicate whether they vote for or against the act.
Where the voting in the election is done by means of
voting machines used pursuant to law in the manner that
carries out the intent of this section, the use of the voting
SB 176 -8-
1 machines and the expression of the voters' choice by
2 means thereof are in compliance with this section.
3 SEC. 5. This act shall become operative only if Senate
4 Bill 140 of the 1987-88 Regular Session becomes
5 operative. 6 SEC. 6. This act is an urgency statute necessary for
7 the immediate preservation of the public peace, health,
8 or safety within the meaning of Article IV of the ,
9 Constitution and shall go into immediate effect. The Facts
10 constituting the necessity are:
11 In order that the measure proposed by this act may be
12 considered and become operative at an appropriate time,
13 it is necessary that this act take efi. .. t immediately.
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RESOLUTION NO. 88-6
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CARLSBAD, CALIFORNIA,
SUPPORTING SENATE BILLS 140 AND 176 (DEDDEH)
4 WHEREAS, the City Council of the City of Carlsbad recog-
5 nizes that an efficient transportation infrastructure is vital
6 to the economic well-being of the state and is essential for
7 the daily activities of all the peop 1.e; and
8 WHEREAS, the adoption of Proposition A in November of
9 1987 established a significant local funding source for trans-
10 portation improvements; and
11 WHEREAS, SB 140 and SB 176 would establish a long-range
12 financial commitment from the Governor and the state Legisla-
13 ture for transportation and would authorize, upon approval of
14 the voters, the issuance of bonds to assist in the financing
15 of transportation improvements; and
16 WHEREAS, SB 140 provides for a new state-local matching
17 program which would maximize the number of improvements which
18 can he implemented using Proposition A funds.
19 NOW, THEREFORE BE IT RESOLVED by the City Council of the
20 city of Carlsbad as follows:
21 1.
22 2.
That the above recitations are true and correct.
That the City council hereby strongly supports Senate
23 Bills 140 and 176.
24 ////
25 // //
26 / // /
27 ////
28 I II I
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2
3
3. That the city Council stresses the importance of the
inclusion of the state-local matching program.
PASSED, APPROVED AND ADOPTED at a regular meeting of the
4 city Council of the City of Carlsbad held the _s_t_h __
5
6
-~Ja~n_u_ar~y'----' 1988 by the following vote, to wit:
7 AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson
8 NOES: None
9 ABSENT: None
day of
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C Mayor
ATTEST:
13 aµt,.tR.~
14 ALETHA L. RAUTENl<RANZ, C~ty Clerk
15 (SEAL)
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