HomeMy Public PortalAbout14) 10B Adoption of Reso. 14-5040 Supporting the Water Quality Supply and Infrustructure Improvement Act 2014 Prop. 1AGENDA
ITEM 10.8
MANAGEMENT SERVICES DEPARTMENT
MEMORANDUM
DATE: October 21 , 2014
TO: The Ho norable City Counc il
FROM: Bryan Cook , City Manage r ~
By : Brian Haworth , Asst. to the City Manager/Econ . Development Manager
SUBJECT: ADOPTION OF RESOLUTION NO. 14-5040 SUPPORTING THE WATER
QUALITY, SUPPLY AND INFRASTRUCTURE IMPROVEMENT ACT OF
2014 (KNOWN AS PROPOSITION 1)
RECOMMENDATION:
The City Counci l is requested to adopt Resolution No . 14-5040 supportin g Proposition 1
o n t he November 4 , 2014 statewide general electio n ba llot, w hich seeks funding in the
amount of $7 .545 bill io n to support water quality, water supply and associated
in frastructure projects .
BACKGROUND:
1. In November 2 00 9, the State legislature passed the Safe, Clean and Reliable
Drinking Water S upply Act of 20 10 (known as the Water Bond ), which considered
$11 .14 billio n in general obligation bonds to fund various statewide water resources
and programs. Th e Water Bond wa s placed on the N ov ember 2010 statewide ballot
for voter consideration ; however, give n concerns of a lagg in g economy and lessened
voter support , its co ns ideration was delayed until November 2014 .
2 . In 2013, the State legislature held numerous hearings to review feasibility and
effectiveness of th e proposed Water Bond , and alternative approaches to revise the
proposed policy. As a result, a variety of bills were subsequently presented to modify
the measure (i .e., AB 1331 , SB 828 , AB 2043 , AB 2686), which reduced the general
obligation bon d amount to less t han $11 .14 billion ; and implemented different funding
categories and water resource obj ectiv es .
3. On August 13, 2014, the State legislature-with bipartisan support-and Governor
Brown approved AB 1471 (Rendon), which repea led th e Wat er Bond scheduled for
the November 2014 statewide ballot; and in its place proposed the Water Quality ,
Supply and Infrastructure Improvement Act of 2014 (known as Propos ition 1).
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October 21 , 2014
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ANALYSIS:
California is in a severe , multi-year drought that continues to stress its reservoirs ,
groundwater basi ns and ecosystems. Public concern about water is at an all-time high ,
with recent polls showing that more than 80 % of Californians identified drought and
water shortages as the state 's most pressing issue . Aging water i nfrastructure , growing
population and unpredictable weather patterns from climate change will no doubt
continue to stress the state's water sys tem .
To address these challenges , Governor Brown-as part of the State's FY 2014-15
budget proceedings-released a State Water Action Plan that outlines California's near-
and long-term water priorities. Proposition 1 is intended to provide $7.545 billion in
financing to implement many elements of that plan including :
• $2 .7 billion for water storage ;
• $900 million fo r groundwater clea nup and monitoring ;
• $725 million for water recycling projects ;
• $1.5 billion for watershed restoration programs (e.g. increasing river flows);
• $200 million for storm water cap ture projects ; and
• $395 million for statewide flood management (e.g., delta flood protection).
If approved by voters , funds from the proposition would be competitively awarded ,
meaning that water districts serving the community would receive funding on merit-
based proposals that address local need-for exa mpl e , water supply reliabi l ity and
water recycling effo rts . In addition to containing strict accountability requirements for
use of the funds , the legislation provides urgency mandating that all funded projects
complete environmenta l reviews , feasibi l ity studies and benefi ciary contracts by January
1' 2022 .
According to a Public Pol icy Institute of California poll (as of this report 's writing), 58 % of
voters said they wo uld s u pport Proposition 1 on the November ballot. The League of
California Ci t ies, of whi c h the City is a member, recently provided its forma l support of
measure ; as well as the Metropolitan Water District of Southern California and U pper
San Gabriel Valley Municipal Wate r District , which imports and sells water to the five
water districts serving Temple City . While the $7 .545 billion bond is not designed
specifically to address the current drought , it does provide a sizable outlay to address
the state's long-term water needs .
CONCLUSION:
As the largest investment in Cal ifornia 's water infrastructure in over four decades ,
Proposition 1 provides critical funding for a range of water and resource management
programs . If approved by voters in November, the State Water Board will subsequently
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October 21 , 2014
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develop criteria for allocati ng available funds . City staff antic ipates participat io n in thi s
process-in co llaboration wi th water districts-to ensure that local projects are
considered for fu nding .
FISCAL IMPACT:
The recomm e nded action presents no fi sca l impa ct to the FY 2014-15 City Budget.
The $7 .545 bi l lio n bond measure is a State ini tiati ve , which proposes $7 .12 bill ion in
new debt plus an additional $42 5 million in unu sed Proposition 84 funds . The bond is
not a new tax-instead , it w i ll be sold to investors , who would be repaid w ith intere st
over a 40-year term using the State 's general ta x revenue.
ATTACHMENT:
A Res olut ion No . 14-5 040
----------------------~ -----------~-~---~--------------
ATTACHMENT A
RESOLUTION NO . 14-5040
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY
PROVIDING SUPPORT FOR PROPOSITION 1 (WATER BOND) ON THE
NOVEMBER 4, 2014 STATEWIDE GENERAL ELECTION BALLOT
WHEREAS , Cal ifornia is in a severe , mu lt i-yea r drought a nd f aces a growin g li st of challenges
a ssociated w ith aging infras tru ct ure , climate c h a nge , populati on g rowth a nd oth er fa ct ors ;
WHEREAS , on A ugust 13 , 2014 , the st ate leg i slature app ro ve d and the Gov ernor signed A B
1471 (Rendon ) -th e W ater Qua lity , Supply an d Infrastru ct ure Improvement Act of 2014 (th e
Wate r Bond);
WHEREAS , the W ate r Bond will be pla ce d o n the ballot fo r th e Novem be r 4, 2014 sta tew ide
genera l election as Proposi tion 1 ;
WHEREAS , as ap pro v e d by the vote rs , Pro position 1 woul d authorize $7 .55 bill ion in genera l
o bl igati on b on ds f or ground water susta in a bility , wa te r use effi cie ncy a nd recy c li ng , s afe d rinking
w at er, state wat er sup pl y inf rastructu re p ro ject s, and watershed restoration programs ;
WHEREAS , t he C ity , thro ugh service of fi ve water districts , relies prima r ily on imported an d
g ro un dwater sources to meet the need s of its residents , and views as significant water sup p ly
re liabi lity a nd wate r recy c lin g efforts ; an d
WHEREAS , the City beli ev es Propos it io n 1, if passed by t he v ote rs , will pro vi de t he necessa ry
fundi ng to ensure tha t its res idents can co ntinue to rely o n groundwater as a pr imary drinki ng
water sou rce an d to e nh a nce local wate r m anagement efforts t hro ug h recycling projects .
NOW, THEREFORE , BE IT RESOLVED th at by t he adoption of this resol ut ion , t he City of
Tem ple C it y provi des its S U PP OR T for pa ssage of Propos iti on 1 (the W ate r Bond) on t he
N ovember 4 , 2014 st atewide genera l e lecti on ba ll ot.
PASSED , APPROVED, AND ADOPTED thi s 2 151 day of Oct ober 2014 .
MAYOR
ATTE ST : A PPROVED AS TO FOR M :
CITY CLE R K C ITY ATTORN EY
Resolution No. 14-5040
Page 2 of 2
I hereby certify that the foregoing resolution , Resolution No. 14-5040, was duly passed ,
approved and adopted by the City Council of the City of Temple City at a regular
meeting held on the 21 51 day of October, 2014 , by the following vote :
AYES :
NOES :
ABSENT :
ABSTAIN :
Councilmember -
Councilmember -
Councilmember -
Councilmember -
City Clerk