16 VTA sales tax
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PUBLIC WORKS DEPARTMENT
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CUPEIQ1NO
Summary
AGENDA ITEM
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AGENDA DATE February 2"12006
SUBJECT AND ISSUE
Valley Transportation Agency (VTA) Proposed Quarter Cent Sales Tax Measure
BACKGROUND
On January 17, 2006 the Council heard a presentation from Jim Lawson and Jack Collins
of the Valley Transportation Authority regarding a proposed revenue and expenditure
scenario which addresses a number of needs nom the VT A 2000 Measure A program
with new revenue !Tom a quarter cent sales tax measure being suggested for the
November 2006 Ballot.
The Council requested that the staff review the proposal and advise the Council on the
benefits that such a tax measure would provide to the City of Cupertino if passed. The
Council requested that the VT A staff return along with the report nom City staff so that
the Council could consider taking a formal position on the measure. This report responds
to that request.
VT A Proposed 2000 Measure A Revenue and Expenditure Plan
In 1996 Measures A and B were passed by the electorate which established a sales tax
based funding mechanism for many transportation projects for a ten year period which
expires this year.
For purposes of illustrating the need and effect of a new quarter cent sales tax measure as
essentially a 30-year addition to the existing 2000 Measure A program, the VTA has
combined all the resources and needs into what it calls the "VT A 2000 Measure A
Expenditure Plan ("Plan"). The revenues for this extended plan would include
approximately $10 Billion of the original Measure A half-cent sales tax, which was
approved in 2000, and which commences in 2006 and continues for 30 years to 2036.
In addition it would include approximately $5 Billion nom a NEW proposed quarter cent
sales tax measure commencing in 2008 (if placed on the ballot and approved by the
electorate) and continuing for 30 years to 2038. Other funding (State, Federal, other
partners, etc.) would combine with these projections to produce approximately $22
Billion !Tom 2006 to 2038.
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Printed on Recycled Paper
It is somewhat complicated to sort out the resources and expenditures in the VT A
scenario since some expenditures are allocated directly to projects while others are
allocated to delivering net bond proceeds, and others are assigned to operating subsidies
It is further confusing to some that the entire proposal is labeled as a "2000 Measure A
expenditure plan" when in fact it combines a number of resources including the proposed
quarter cent sales tax measure which is not yet assured, much less approved by the
electorate. However, staff, with input !Tom the VTA staff has provided a summary ofthe
effect and benefit to Cupertino of this combined scenario.
Cupertino Benefits !Tom the proposed VT A 2000 Measure A Expenditure Plan
A Summary of City of Cupertino Projects or Programs !Tom the "2000 Measure A Plan"
basically has two parts:
I. General but as yet unspecified service increases or projects which may benefit
Cupertino residents directly or indirectly.
· Initiation of Bus Rapid Transit (BRT) projects on Line 22 (Monterey
Corridor and Stevens Creek) by 2021
· General but unspecified increase of up to 24% ofVTA's current levels of
servIce
· New, as yet undefined, program of Senior /Disabled services
· $3.3 Million per year for unspecified improvements to the County
Expressway system (could be based on the Comprehensive Expressways
Plan approved by the County in August of 2003)
· $1.4 Million per year for a Bicycle Pedestrian Program for which
Cupertino could compete with other cities for funding,
2. New allocations for projects or services that directly benefit Cupertino
· $130 Million for a New Bus Rapid Transit (BRT) project serving a
Sunnyvale and Cupertino corridor by 2021
· $10 Million per year for Local Streets and Roads which, if the allocation
fonnula nom the 1996 Measure B were applied, would provide $200,000
per year to Cupertino for 30 years (assuming 3.5% escalation per year)*
(*The attached table illustrates estimated allocations associated with a proposed quarter
cent sales tax based on the Proposition 111 fonnula used for the 1996 Measure B $90
million Pavement Management Program. An allocation fonnula has not yet been
established by VT A for the proposed quarter cent sales tax. VT A would work through the
Technical Advisory Committee to establish an allocation formula.)
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In the information provided to staff by the VTA, a listing of Non-Measure A projects
which directly or indirectly benefit Cupertino and which are already funded, was included
as well. While these projects have nothing to do with the sales tax proposal they are
summarized inthe attachment along with the table noted above.
The Council may wish to formally adopt a position on this proposal since it is likely to be
considered by the VT A Board of Directors in March 2006, However, since this is strictly
a policy matter on a regional issue, staff is only providing this report for the Council's
information should it wish to consider taking a position on the VT A quarter cent sales tax
proposal.
Submitted by:
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Director of Public Works
Approved for submission:
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David W. Knapp
City Manager
Attachment A: Table ofPMP Allocations and List of Non Measure A Projects
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ATTACHMENT 'A'
Table 1: Potential PMP Allocations Using 1996 Measure B Formula
% Allocation Annual Total Escalated
Campbell 1.80% $ 180,000 $ 8,793,000
County Roads and Airports 30.00% $ 3,000,000 $ 146,550,000
Cupertino 2.00% $ 200,000 $ 9,770,000
Gilroy 1.57% $ 157,000 $ 7,669,450
Los Altos 1.31% $ 131,000 $ 6,399,350
Los Altos Hills 0.37% $ 37,000 $ 1,807,450
Los Gatos 1.36% $ 136,000 $ 6,643,600
Mllpitas 2.57% $ 257,000 $ 12,554,450
Monte Sereno 0.16% $ 16,000 $ 781,600
Morgan Hill 1.22% $ 122,000 $ 5,959,700
Mountain View 3.39% $ 339,000 $ 16,560,150
Palo Alto 2.78% $ 278,000 $ 13,580,300
San Jose 39.44% $ 3,944,000 $ 192,664,400
Sanla Clara 4.68% $ 468,000 $ 22,861,800
Saratoga 1.40% $ 140,000 $ 6,839,000
Sunnwale 5.95% $ 595,000 $ 29,065,750
Total 100.00% $ 10,000,000 $ 488,500,000
Non-Measure A 2000 Projects:
De Anza Collefle Transit Center: VTA has programmed $3.5 million for construction
of the De Anza Transit Center improvements by fiscal year 2008 in the VT A Short
Range Transit Plan.
Community Bus Prof!f'am: As part ofVTA's Short Range Transit Plan and the
Comprehensive Operational Analysis, a Community Bus Program of smaller more
efficient vehicles will begin to be deployed in the next few years, It is unclear how
this will benefit Cupertino.
Valley Transportation Plan Pro/eets:
· SR 85 Auxiliary Lanes between Homestead Ave, and Fremont Ave. (While
this project is in Sunnyvale and Mountain View, it will presumably have a
positive benefit for Cupertino
· I-280/85/Foothill Expressway Interchange
· Rancho Rinconada Traffic Calming Project
· Bollinger Rd. bicycle facility improvement at Calabasas Creek bridge
· Mary Ave. (1-280) Bicycle Pedestrian Bridge
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