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HomeMy WebLinkAboutStaff Report 3077 City of Palo Alto (ID # 3077) City Council Staff Report Report Type: Action ItemsMeeting Date: 9/4/2012 Summary Title: Revote High Speed Rail Initiative Title: Consideration of a Vote of Support for the Revote High Speed Rail Initiative From: City Manager Lead Department: Planning and Community Environment Recommendation On July 25, 2012, the “Revote High Speed Rail” campaign was suspended by its authors as litigation against the California High Speed Rail Authority (CHSRA) moves through the court system. Therefore, staff recommends that no further action, including a vote of support for the initiative, is taken on this issue until the campaign is restored. Previously, the City Council Rail Committee recommended that Council support the “Revote High Speed Rail” initiative because it is consistent with Council’s adopted policy that the High Speed Rail (HSR) project should be terminated. Background and Discussion The “Revote High Speed Rail” initiative was co-authored by California Senator Doug LaMalfa and retired US Congressman George Radanovich. If placed on the ballot and approved by the voters, the initiative would immediately prevent the sale of any additional HSR bonds approved by the voters under Prop. 1A, effectively ending the currently proposed HSR project. The full “Revote High Speed Rail” initiative text is attached to this staff report (Attachment A) or can be viewed at www.revoterail.com. Currently, the campaign is suspended. With the passage of SB 1029 on July 6, 2012, $4.76B of the $9.95B Prop 1A bonds were authorized for immediate sale to fund the initial Central Valley HSR segment and connectivity projects in the Bay Area (i.e. Caltrain Electrification) and Southern California. Therefore, preventing the sale of these bonds is one of the few means the City has to protect the state from the negative financial impacts that the City believes this project will cause. Council’s policy statement opposing HSR asserts that the project as proposed contradicts Prop. 1A. Moreover, Council is concerned that the economic viability of HSR is highly questionable because the Business Plan is based on faulty assumptions and, therefore not credible. At the June 13, 2012 City Council Rail Committee meeting the Committee voted 2-1 to recommend that the City Council support the initiative with Councilmember Burt dissenting and Councilmember Scharff absent. Councilmember Burt was concerned about the timing of a potential vote of support by the City Council. Attachments:  Attachment A: Revote High Speed Rail Initiative Text (DOCX) Prepared By: Richard Hackmann, Department Head: Curtis Williams, Director City Manager Approval: ____________________________________ James Keene, City Manager Revote High Speed Rail Initiative Text Stop the $100 Billion High Speed Train Act THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. FINDINGS and DECLARATIONS The people of the State of California find and declare that: 1. When voters approved the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century in 2008, they were promised a statewide High-Speed Train project including Sacramento, the San Francisco Bay Area, the Central Valley, Los Angeles, the Inland Empire, Orange County, and San Diego at a cost of approximately $45 Billion. 2. According to the California High Speed Rail Authority in 2008, the estimated cost for Phase One of the project linking just San Francisco and Los Angles was $34 Billion. This phase eliminated Sacramento, Oakland, the Inland Empire, and San Diego. By early 2012, their estimated cost for this Phase One more than tripled and could reach $118 Billion. 3. Despite spending more than $500 Million, not one mile of track was built between 2008 and early 2012 and plans became dependent on billions of dollars of future federal grants or billions of dollars of debt or private investments that the taxpayers of California will be responsible for repaying. 4. California cannot afford to pay for a high speed train system that will cost more than $100 Billion at a time when teachers and police are being laid off, prisoners are being released from prisons, and taxpayers are being asked to dig deeper into their own pockets to pay for basic services. 5. This measure shall be known as the “Stop the $100 Billion High Speed Train Act.” SECTION 2. Section 2704.045 is added to the Streets and Highways Code, to read: 2704.045. Notwithstanding Section 2704.04, it is the intent of the People of California that no further bonds shall be issued and sold for purposes of Sections 2704.06 and 2704.095. SECTION 3. Section 2704.096 is added to the Streets and Highways Code, to read: 2704.096. (a) Notwithstanding any other provision of this chapter, no further bonds shall be issued and sold for purposes of Sections 2704.06 and 2704.095 on and after the effective date of this section. (b) Notwithstanding any other provision of this chapter, all unspent proceeds received from outstanding bonds issued and sold pursuant to Sections 2704.06 and 2704.095 prior to the effective date of this section shall be redirected from those high-speed rail purposes for use in retiring the debt incurred from the issuance and sale of those outstanding bonds. (c) Notwithstanding any other provision of this chapter or any other provision of law, with respect to construction or operation of the high-speed rail project authorized by this chapter, the state shall not, on and after the effective date of this section, (1) incur any additional debt, (2) accept or use any federal funds, (3) provide or use any state funds, or (4) accept any local funds. (d) All agreements entered into by or on behalf of the state relating to the high-speed rail project, other than agreements related to the issuance and repayment of previously issued bonds under this chapter, are hereby terminated as of the effective date of this section. SECTION 4. Severability The provisions of this measure are severable. If any provisions of this measure or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SECTION 5. Conflicting Initiatives In the event that this measure and another measure or measures relating to the Safe, Reliable High- Speed Passenger Train Bond Act for the 21st Century shall appear on the same statewide election ballot, the provisions of the other measure or measures shall be deemed to be in conflict with this measure. In the event that this measure receives a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and the provisions of the other measure or measures shall be void. ***Source: http://www.revoterail.com/initiative