HomeMy WebLinkAboutStaff Report 8415
City of Palo Alto (ID # 8415)
City Council Staff Report
Report Type: Inter-Governmental Legislative Affairs Meeting Date: 8/28/2017
City of Palo Alto Page 1
Summary Title: Support for SB 797 (Hill), increasing regional sales tax by 1/8
cent to partially fund Caltrain
Title: Declaration of Support for SB 797 (Hill), a Bill Allowing Regional Entities
and Residents of Santa Clara, San Francisco, and San Mateo Counties to Vote
to Increase the Sales Tax by 1/8 Cent for Caltrain Operations and Capital
Purposes
From: City Manager
Lead Department: City Manager
Recommendation
Staff recommends that Council declare its support for SB 797 (Hill), a bill allowing the
Peninsula Corridor Joint Powers Board to petition regional entities and the voters of
Santa Clara, San Francisco, and San Mateo counties, to increase the sales tax by 1/8
cent to fund Caltrain operations and capital expenditures, and direct the City Manager
to advocate for its adoption, including submitting letters of support to the legislature,
contacting the author to offer support, and directing the City’s lobbyist to testify on
behalf of the bill in committee hearings and meet with the legislative offices to advocate
for the bill on behalf of the City.
Background
SB 797 is a bill primarily seeking to alleviate the gridlock on Highway 101 and reduce
regional traffic congestion by expanding Caltrain service. Caltrain is owned and
operated by the Peninsula Corridor Joint Powers Board, comprised of representatives
from the City and County of San Francisco, the San Mateo County Transit District and
the Santa Clara Valley Transportation Authority. In support of the bill, Caltrain notes
that its Fiscal Year 2017 operating budget is fully balanced, without cutting services or
increasing fares. However, a balanced budget depends on one-time-only funds, which
in turns depends on ridership. Ridership fluctuates and is not a dependable source of
revenue year over year.
Additionally, Caltrain still must address a structural deficit that leaves the agency
vulnerable in years of ridership decline or economic downturn. To address these budget
impacts as well as capital improvements, SB 797 seeks to create an additional revenue
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source for Caltrain from the citizens of the region in which it operates through a sales
tax increase. The increase would not exceed 0.125 percent, or 1/8 cent.
Discussion
This recommendation meets two of the City’s 2017 legislative priorities: promoting local
rail and other local and regional transportation programs that reduce single occupancy
vehicle trips, and supporting the regional improvement of air quality. Caltrain is a local
rail service that reduces single occupancy vehicle trips; ridership reduces the number of
autos and auto emissions on our roads, which positively affects air quality.
If the bill becomes law, it must be approved by a majority vote of the Supervisors of
Santa Clara, San Francisco, and San Mateo counties and the San Francisco County
Transportation Authority, the San Mateo County Transit District, and the Santa Clara
Valley Transportation Authority. It must also receive approval of 2/3 of the Peninsula
Corridor Joint Powers Board before going to the voters for their approval by a 2/3 vote.
Timeline, Resource Impact, Policy Implications, Environmental Review (If
Applicable)
SB 797 has passed Senate and Assembly committees, and is returning to the Senate for
final votes. If it passes the legislature by a majority vote, the Governor must sign the
bill within twelve days of receiving it for the bill to become law on January 1, 2018. At
that time, the County Supervisors and entities above may vote on the measure before
sending it to regional voters.
There is no resource impact or policy implication associated with this action. This is not
a “project” under CEQA requiring environmental review as it will not cause a direct or
indirect physical change in the environment.