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Home My WebLink AboutCM Oppose Proposition 53QF Agenda Item No: 3_d CITY n Meeting Date: October 3, 2016 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: CITY MANAGER Prepared by: Rebecca Woodbury, Sr. Management Analyst City Manager Approval. TOPIC: Proposition 53 Opposition SUBJECT: Resolution in Opposition to Proposition 53 Revenue Bonds: Statewide Voter Approval. Constitutional Amendment. RECOMMENDATION: Adopt Resolution opposing Proposition 53 regarding statewide voter approval prior to the issuance or sale of state revenue bonds. DISCUSSION: This measure would require statewide voter approval prior to the state issuing or selling any revenue bonds of $2 billion or more for state projects that are financed, owned, operated or managed by the state or a joint agency created by or for the state. California and its local communities have a backlog of essential infrastructure needs, including crumbling local streets and roads, unsafe bridges and overpasses, aging water supply infrastructure, inadequate public transportation systems, and overcrowded hospitals and universities. By requiring a statewide vote on some local or regional projects, this initiative would erode local control by empowering voters in distant communities to reject projects which they do not use and do not fund. The League of California Cities recommends opposing Proposition 53. This measure would make it more difficult for state, regional, and local public agencies to use revenue from a common funding source to finance critical infrastructure projects. This concern is valid as cities and counties could also be members to joint powers agencies created by the state. Additionally, the broadest interpretation could prevent critical state improvements in a community, even under the $2 billion threshold, as long as they're "proximate, physically joined/connected, and/or cannot be complete without the other project." While the immediate impact on a city from this proposal can be debated, its enactment would set a legal and policy precedent of having revenue bonds subject to public votes. Such a precedent could lead to future efforts to expand such a requirement to apply to local government revenue bonds, further limiting local flexibility. This measure could derail and delay San Rafael's ability to make improvements to critical infrastructure, including after emergencies and natural disasters. FISCAL IMPACT: No impact. RECOMMENDED ACTION: Staff recommends that the City Council adopt the attached Resolution. OPTIONS: • Approve the Resolution ■ Modify Resolution and/or Direct Staff to Return with Modifications • Reject the Resolution ATTACHMENT: Resolution FOR CITY CLERK ONLY File No.: 116 x 9-1 Council Meeting: 10/03/2016 Disposition: Resolution 14201 RESOLUTION NO. 14201 RESOLUTION IN OPPOSITION TO PROPOSITION 53 WHEREAS, California and its local communities have a backlog of essential infrastructure needs, including crumbling local streets and roads, unsafe bridges and overpasses, aging water supply infrastructure, inadequate public transportation systems, and overcrowded hospitals and universities; and WHEREAS, Proposition 53 on the November ballot would erode local control and undermine the ability of cities, counties and other local agencies and the state to form partnerships to finance the construction of some critical public infrastructure projects; and WHEREAS, this initiative would require a statewide vote on certain local infrastructure projects financed through revenue bonds, where local governments have joined in a Joint Powers Authority (JPA) in partnership with the state or where the state was involved in the creation of the JPA; and WHEREAS, by requiring a statewide vote on some local or regional projects, this initiative would erode local control by empowering voters in distant communities to reject projects which they do not use and do not fund; and WHEREAS, this measure could derail and delay San Rafael's ability to make improvements to critical infrastructure, including after emergencies and natural disasters; and WHEREAS, No on 53 is a growing coalition of organizations representing local governments, water agencies, public safety leaders, businesses, labor unions, hospitals, family farmers, environmentalists and educators that have come together to officially oppose this initiative. NOW, THEREFORE, BE IT RESOLVED, that the City Council, on behalf of the residents of the City of San Rafael, hereby OPPOSES Proposition 53. I, Esther C. Beirne, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 3rd of October 2016, by the following vote, to wit AYES: COUNCILMEMBERS: Bushey, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Colin atj�L_ &-_ . Esther C. Beirne, City Clerk ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval by the City Council. Save staff report (including this cover sheet) along with all related attachments in the Team Drive (T:) --> CITY COUNCIL AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT - AGENDA TOPIC] Agenda Item # Date of Meeting: 10/3/2016 From: Jim Schutz Department: City Manager Date: 9/22/2016 Topic: Proposition 53 Subject: Resolution in Opposition to Proposition 53 Revenue Bonds: Statewide Voter Approval. Constitutional Amendment. Type: ® Resolution ❑ Ordinance ❑ Professional Services Agreement ❑ Other: Staff Report APPROVALS ® Finance Director Remarks: approved - one minor formatting edit ® City Attorney Remarks: Approved with minor changes.ETD. 9/23/16 ® Author, review and accept City Attorney / Finance changes Remarks: ® City Manager Remarks: