HomeMy WebLinkAboutResolution No. 15-7606-Supporting Federal America Fast Forward Transportation Bonds**s] !_ • ► I L, W7 5 T. 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
SUPPORTING FEDERAL AMERICA FAST FORWARD TRANSPORTATION
BONDS
WHEREAS, the City of Downey is substantially bordered by 4 major interstate
freeways; and,
WHEREAS, California cities and counties own and operate more than 81 percent of
streets and roads in the state,- and from the moment we open our front door to drive to work,
bike to school or walk to the bus station, people are dependent upon a safe,_ reliable local
transportation network; and,
WHEREAS, the City of Downey has participated in efforts with the California State
Association of Counties, League of California Cities, and California's Regional Transportation
Planning Agencies to study unmet funding needs for local roads and bridges, including
sidewalks and other essential components; and,
WHEREAS, the resulting 2014 California Statewide Local Streets and Roads Needs
Assessment, which provides critical analysis and information on the local transportation
network's condition and funding needs, indicates that the condition of the local transportation
network is deteriorating as predicted in the initial 2008 study; and,
WHEREAS, the results show that California's local streets and roads are on a path of
significant decline. On a scale of zero (failed) to 100 (excellent), the statewide average
pavement condition index (PCI) is 66, placing it in the "at risk" category where pavements will
begin to deteriorate much more rapidly and require rehabilitation or rebuilding rather than more
cost- effective preventative maintenance if funding is not increased; and,
WHEREAS, the results show that the City of Downey's local streets have a statewide
average pavement index of 71, placing them in the "C" category; and,
WHEREAS, cities and counties need an additional $1.7 billion just to maintains status
quo pavement condition of 66, and much more revenue to operate the system with Best
Management Practices, which would reduce the total amount of funding needed for
maintenance in the future; and,
WHEREAS, models show that an additional $3 billion annual investment in the local
streets and roads system is expected to improve pavement conditions statewide from an
average "at risk" condition to an average "good" condition; and,
WHEREAS, if additional funding isn't secured now, it will cost taxpayers twice as much
to fix the local system in the future, as failure to act this year will increase unmet funding needs
for local transportation facilities by $11 billion in five years and $21 billion in ten years; and,
WHEREAS, modernizing the local street and road system provides well - paying
construction jobs and boosts local economies; and,
WHEREAS, the local street and road system is also critical for farm to market needs,
interconnectivity, multimodal needs, and commerce; and,
WHEREAS, a lack of significant infrastructure investment in the region has significant
costs that impact traffic congestion on our local roads, highways, and railways;: and,
RESOLUTION NO. 15 -7606
PAGE 2
WHEREAS, every $1 billion of investment in the nation's transportation infrastructure
supports 36,000 jobs, generates nearly $500 million in federal, state, and local tax revenues,
and confers significant benefits to cities, including supporting economic growth and goods
movement; and improving quality of life by helping to alleviate traffic congestion;_ and,
WHEREAS, the Highway Trust Fund has insufficient resources to maintain the current
level of federal spending on surface transportation, much less help fund major new investment
initiatives; and,
WHEREAS, the fiscal and budget realities confronting the Administration and Congress
require_ new innovative, targeted federal financing tools for transportation infrastructure that
minimize impacts on the federal budget and maximize new job creation; and,
WHEREAS, federal tax incentives can be a highly effective tool for encouraging private
sector investment and, unlike direct federal spending, do not require growing the size of the
federal government to administer them; and,
WHEREAS, Congress has created over $35 billion of qualified tax credit bonds with
bipartisan support for a variety of sectors including: school construction, renewable energy, as
well as forestry and energy conservation; and,
WHEREAS, America Fast Forward Transportation Bonds would support the creation of
a 21st century national surface transportation system by creating a new category of qualified tax
credit bonds to stimulate investment in highways, transit, bridges, freight, and intermodal
facilities; and,
WHEREAS, America Fast Forward Transportation Bonds should enable a project
sponsor to undertake substantially greater investments within a defined revenue stream for debt
service payments than other borrowing approaches, such as traditional tax - exempt bonds; and,
WHEREAS, America Fast Forward Bonds would generate at least 500,000 private
sector jobs nationwide; and,
WHEREAS, America Fast Forward Bonds have received support from hundreds of
mayors across the country and diverse groups including, the National League of Cities, U.S.
Chamber of Commerce, Building America's Future, National Association of Regional Councils,
National Association of Counties and others;
• THEREFORE, • OF OF DOWNEY D1si
RESOLVE HEREBY • •
SECTION 1. The City Council hereby supports the creation of Federal America Fast
Forward Transportation Bonds, which would include $45 billion program over 10 years; and
Federal government supports the interest cost by granting investors an annual tax credit,- and
the state and local issuer repays the principal with non- federal revenues; and 35 percent of the
volume would be allocated to all states based on their proportion of the nation's population, and
65 percent would be allocated at the discretion of the Secretary of Transportation among
projects; and Eligible projects would include: highways, bridges and tunnels; transit and intercity
passenger bus or rail; and intermodal freight transfer facilities and private freight facilities
conferring a public benefit.
RESOLUTION NO. .1
PAGE 3
SECTION 2. A certified copy of this Resolution shall be forwarded to the City of
Downey's federal legislators in the House of Representative and the Senate.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution which shall be
effective upon its adoption.
PASSED, APPROVED and ADOPTED this 8th day of December, 2015.
LUIS t
Mayor
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a regular meeting held on the 8th day of December, 2015, by the following
vote, to wit:
AYES:
Council Members:
Ashton, Brossmer, Vasquez, Saab, Mayor Marquez
NOES:
Council Member:
None.
ABSENT:
Council Member:
None.
ABSTAIN.
Council Member:
None.
ADRIA M. JIMENEZ,' MC
City Clerk