PUBLIC WORKS, WATER & DEVELOPMENT SERVICES 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 Fax (323) 826-1435 May 18, 2016 Mark Ridley-Thomas, Chair Los Angeles County Metropolitan Transportation Authority ‘One Gateway Plaza Los Angeles, California 90012-2952 RE: PROPOSED BALLOT MEASURE R2 - CHANGE IN LOCAL RETURN DISTRIBUTION FORMULA Dear Chair Ridley-Thomas: On May 17, 2016, the City of Vernon City Council approved Resolution No. 2016-25 urging the Los Angeles County Metropolitan Transportation Authority (Metro) to modify the proposed Measure R2 Local Return funding allocation for local transportation infrastructure. Enclosed herewith is a certified copy of Resolution No. 2016-25. By way of background, the City of Vernon has 49.1 miles of paved roads to be maintained including several major arterial roadways that serve regional goods movement from the Ports of Los Angeles and Long Beach, public transit and personal transportation needs of surrounding communities. Serving as a vital economic engine in the region, the City of Vernon houses more than 1,800 businesses which generate an average of $507 million in sales tax annually to the State and employ approximately 50,000 people. Offering an environment uniquely friendly to business, the City of Vernon needs steady funding for local transportation infrastructure. However, transportation funding, such as Measure R is currently allocated on a per capita basis. Consequently, the City of Vernon does not receive an adequate share of these funds due to the City’s small population. The City of Vernon believes that the proposed Measure R2 Local Return funding allocation is not equitable to the cities in Los Angeles County. Cities with small populations have significant transportation infrastructure improvement needs and adequate funding should be provided to enable the small population cities to effectively maintain their transportation infrastructure. Therefore, the City of Vernon urges Metro to modify the proposed Measure R2 Local Retum funding allocation for local transportation infrastructure. ‘The City of Vernon suggests modification of the proposed Measure R2 Local Retum funding allocation be explored, specifically a funding allocation based on maintained miles of local transportation infrastructure. Exclusively IndustrialMark Ridley-Thomas, Chair Page? May 18, 2016 The City of Vernon appreciates your consideration and we stand ready to work cooperatively with Metro on this effort. Ilook forward to hearing back from you or your staff. If you have any questions please contact me at 323-583-8811 extension 260 or wdavis@ci.vernon.ca.us, You may also contact Derek Wieske, Public Works, Water é& Development Services Director of my staff at 323-583-8811 extension 245 or dwieske@ci.vernon.ca.us. Thank you. Sincerely, i vw Davis DWrea Enclosure Phil Washington, Metro CEO Carlos Fandino, City Administrator Derek Wieske, Public Works, Water & Development Services Director Mayor Mark D. Radecki, City of Industry Mayor Ivan Altamirano, City of Commerce Marissa Holguin, Vernon Chamber of CommerceCERTIFICATE STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES) I, Maria E. Ayala, City Clerk of the City of Vernon, County of Los Angeles, State of California, hereby certify that the attached is a full and complete copy of: RESOLUTION NO. 2016-25 - A Resolution of the City Council of the City of Vernon Urging the Los Angeles County Metropolitan Transportation Authority to Modify the Proposed Measure R2 Local Return Funding Allocation for Local Transportation Infrastructure IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official Seal of the City of Vernon, County of Los Angeles, State of California, on this day of May 2016. SEAL: city IclerkRESOLUTION NO. 2016-25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON URGING THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY TO MODIFY THE PROPOSED MEASURE R2 LOCAL RETURN FUNDING ALLOCATION FOR LOCAL TRANSPORTATION INFRASTRUCTURE WHEREAS, the City of Vernon (the “city”) is a municipal corporation and a chartered city of the State of California organized and existing under its Charter and the Constitution of the State of California; and WHEREAS, the City has 49.1 miles of paved roads to be maintained including several major arterial roadways that serve regional goods movement from the Ports of Los Angeles and Long Beach, public transit and personal transportation needs of surrounding communities; and WHEREAS, serving as a vital economic engine in the region the City needs steady funding for local transportation infrastructure; and WHEREAS, transportation funding, such as Measure R, is allocated on a per capita basis, and consequently, the City does not receive an adequate share of these funds due to the City’s small population; and WHEREAS, Measure R is funded with % cent sales tax revenues that Los Angeles County voters approved in November 2008 to meet the transportation needs of Los Angeles County; and WHEREAS, fifteen percent (15%) of the Measure R tax is designated for the Local Return Program to be used by the 88 incorporated cities in the County of Los Angeles (the “County”) and the County itself (together, the “Jurisdictions”); and WHEREAS, the Los Angeles County Metropolitan TransportationAuthority (“Metro”) allocates and distributes Local Return funds monthly to Jurisdictions on a per capita basis; and WHEREAS, Measure R’s Local Return funding allocation is allocated for major street resurfacing, rehabilitation and reconstruction; pothole repair; left turn signals; bikeways; pedestrian improvements; streetscapes; signal synchronization; and transit on a per capita basis; and WHEREAS, due to the per capita allocation formula, the City of Vernon's Measure R Local Return funding allocation is minimal (approximately §2,300/year); and WHEREAS, Metro is considering a ballot measure for November 2016, commonly known as Measure R2, that would augment Measure R with a new half-cent sales tax and extend the current Measure R tax rate to 2057; and WHEREAS, the State Legislature passed SB 767 (de Leon) on September 15, 2015, which authorized Metro to place a transportation measure on the ballot for voters’ consideration; and WHEREAS, the Governor announced his approval on October 7, 2015, making it effective January 1, 2016; and WHEREAS, the Jurisdictions are responsible for building, improving, operating and maintaining much of the transportation infrastructure throughout the County; as mentioned above, a 15% local return allocation of the existing % cent Measure R sales tax provides a key revenue source for critical needs, such as potholes, curb cuts, sidewalks, and active transportation projects; and WHEREAS, Measure R2 is estimated to generate $19.1 billion during the term of the proposed new sales tax; and WHEREAS, it is important to note that the recommended funding ~2-allocation of 16% for Local Return results in a more than doubling of existing Measure R Local Return funds between FY18 and FY39 and extends the tax for another 18 years; and WHEREAS beginning in FY18, the proposed new funding allocation of 16% for Local Return will be added to the 15¢ Local Return currently generated by Measure R and the amount of local funds will exponentially grow beyond that during the later years of the new Measure R2; and WHEREAS, the City of Vernon urges Metro to modify the proposed Measure R2 Local Return funding allocation for local transportation infrastructure, which is equitable to the Jurisdictions, including small population cities such as the City of Vernon; and WHEREAS, by memorandum dated May 17, 2016, the City’s Director of Public Works, Water and Development Services has recommended that the City urge Metro to modify Measure R2’s Local Return funding allocation for local transportation infrastructure, which is equitable to the Jurisdictions including small population cities such as the City of Vernon. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of vernon hereby finds and determines that the above recitals are true and correct. SECTION 2: The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA), in accordance with Section 15061(b) (3), the general rule that CEQA only applies to projects that may have an effect on the environment.SECTION 3: The City Council of the City of Vernon hereby urges the Los Angeles County Metropolitan Transportation Authority to modify the proposed Measure R2 Local Return funding allocation for local transportation infrastructure in a manner that is equitable to the Jurisdictions, including small population cities such as the City of Vernon, SECTION 4: The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk’s, or Deputy City Clerk’s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 17% day of May, 2016. Ads Name: Willian J. Davis Title: Mayor AwMeyor—Pro~Pex— ATTEST: ala City Clerk / Depaty-City-tierk2 APPROVED AS TO FORM: Bria Byun, Deputy City AttorneySTATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) 1, Maria E. Ayala city clerk /-Deputy-ctty CleeBof the city of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2016-25, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, May 17, 2016, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this GQ cay of May, 2016, at Vernon, California. City! Clerk / Deputy city lerk— (SEAL)