STAFF REPORT TO THE CITY COUNCIL
DATE: February 11, 2025
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, AICP, Community Development Director SUBJECT: Measure J Growth Management Program (GMP) Compliance Checklist for 2022 and 2023 for allocation of Local Street Maintenance & Improvement Funds for Fiscal Years 2022–23 and 2023–24 RECOMMENDED ACTION:
Adopt a Resolution (see Attachment 1) approving the Measure J Growth Management Program (GMP) Compliance Checklist for Calendar Years 2022 and 2023 with the attachments and authorize submittal to the Contra Costa Transportation Authority (CCTA) for disbursement of Measure J Local Street Maintenance & Improvement Return-to-Source Funds for Fiscal Years (FY) 2022–23 and 2023–24.
BACKGROUND:
In 1988, Contra Costa County voters approved Measure C, which authorized a half-cent sales tax increase for gasoline sales throughout the County. The funds raised with this special tax have been used for road, highway, and transportation infrastructure maintenance and improvements within Contra Costa County. Measure C expired on March 31, 2009, but Measure J (approved by voters in November 2004) extended the half cent sales tax until the year 2034.
ANALYSIS:
To receive its share of funds from the Measure J Local Street Maintenance and Improvement (LSM) program and to be eligible for funds from the Transportation for Livable Communities (CC-TLC) program, each jurisdiction in Contra Costa County must comply with all components of the Growth Management Program (GMP). Every two years, CCTA assesses compliance with the GMP through the review and approval of each jurisdiction’s GMP Compliance Checklist. Each jurisdiction must complete the checklist, prepare the detailed information requested in the attachments section, approve the completed Checklist and attachments at the City Council level, and transmit a fully-executed and signed original to CCTA. Jurisdictions that comply with the Growth Management Checklist requirements receive funds to be used for local roadway maintenance projects. The City of Hercules has participated in this Checklist Compliance procedure since FY 1991–92. As a reference, the City of Hercules received $450,134 for the 2021-22 fiscal year and anticipates $510,780 for fiscal year 2022-23.
For the Calendar Years 2022 & 2023 reporting period, the Checklist is due no later than June 30, 2025. Provided the City demonstrates compliance with the GMP, the City will be eligible to receive Measure J funds in August following the close of each fiscal year. For this reporting period, the funds received are used to fund transportation projects identified in the Five-Year Capital Improvement Plan, which the City Council last reviewed and adopted as part of the FY 2024-25 Annual Budget on June 11, 2024 (Resolution No. 24035).
The Growth Management Checklist requires that jurisdictions in Contra Costa County, including Hercules, comply with the following requirements:
Implement Action Plans for Routes of Regional Significance; Adopt a Development Mitigation Program (i.e., establish and collect transportation impact mitigation fees); Demonstrate reasonable progress in providing housing options and job opportunities through General Plan Housing Element compliance with State requirements, while incorporating bicycling, walking, and transit into development review; Prepare traffic impact studies for new projects and development for regional peer review when projects involve more than 100 net new vehicle trips in the peak hour; Participate in ongoing, cooperative, multi-jurisdictional planning (e.g., West Contra Costa Transportation Advisory Committee membership); Adopt a five-year Capital Improvement Program;
Have a Transportation Systems Management (TSM) program in place; Adopt a General Plan Growth Management Element (GME) that complies with the intent of the Measure J Model GME (2007); Comply with a voter-approved Urban Limit Line; and,
Expend a designated minimum amount of non-Measure J and other transportation funding sources on transportation projects (Maintenance of Effort).
If a jurisdiction is found to be non-compliant with program requirements, the CCTA may withhold that jurisdiction's share of the "Return-to-Source" sales tax revenues intended for local street maintenance and improvements. For the fiscal year 2023-24, the retroactive, pro-rated distribution of street maintenance funds to the City of Hercules amounts to $493,303, and for the fiscal year 2024-25, it is yet to be determined. Distribution becomes available in July 2025 and is based upon several factors: actual sales tax revenues; Hercules’ 58.48 miles of roads (1.84% of all 3,186 miles of eligible roads in the County); the City’s January 2023 population of 26,297 residents (2.29% of the 20 jurisdictions’ total population); and an initial (i.e., base) allocation of $100,000.
FISCAL IMPACT:
By demonstrating to CCTA compliance with the Measure J Growth Management Program through approval of the Compliance Checklist, the City ensures its ability to receive its share of 18% plus 2.09% Local Street Maintenance and Improvement Funds (Measure J Return-to-Source sales tax dollars) in August following the close of each fiscal year. There will be a projected positive fiscal impact of approximately $100,000 on the City’s Measure J Local Street Maintenance & Improvement Funds based on Return-To-Source sales tax dollars received by CCTA for FY 2021-22 and 2022-23 combined. The City anticipates receiving allocations in two separate disbursements, pending CCTA approval of the Measure J GMP Compliance Checklist for Calendar Years 2022 & 2023 (see Attachment 2).
ATTACHMENTS:
Attach 1- Draft Resolution
Attach 2- Measure J Growth Management Program Compliance Checklist