Paso Robles City Council
April 2, 2024

LOCAL ROADS FIRST

SLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary Draft 3-5-24

SOUTH COUNTY PROJECTS
• Community Road Safety & Congestion Improvements
° US 101 corridor congestion/safety improvements to over/undercrossings, intersections, interchanges, signalization, ramps, parallel routes in the Five Cities area ° Intersection improvements, Promenade maintenance/extensions ° Safe Routes to School
° Public Transit for Seniors, Persons with Disabilities, and Veterans $8 M
Nipomo
• Road Repairs and Safety Improvements to roads in Nipomo, Black Lake, Woodlands, Callender; Tefft, Orchard, Thompson, and Pomeroy
• Local Interchange improvements
$24 M
Oceano
• Safe Routes to School, Beach Access
• Road Repairs, Sidewalks, and Safety Improvements to 4th, 13th, 17th, 22nd, Elm, Pier $11 M
Other/Unincorporated $23 M
• Road Repairs to Halcyon, Price Canyon, Orcutt, Lopez; and Safety Improvements for all South County Unincorporated areas
$12 M
• Community Road Safety & Congestion Improvements
° US 101 corridor congestion/safety improvements to overcrossings, intersections, interchanges, signalization, ramps, parallel routes
° Safe Routes to School
° Public Transit for Seniors, Persons with Disabilities, and Veterans $11 M
Regional Projects - 34% $68 M
Regional Road Safety Improvements $50 M
• South County US 101 Regional Safety Corridor Improvements, between Shell Beach and the Santa Maria River, to address safety, mobility, and congestion issues based on latest adopted plan (i.e. lanes, interchanges, crossings, ramps, bus, vanpool, parallel routes, etc.) Mobility for All $17 M
• Public Transit for Seniors, Persons with Disabilities, and Veterans $8 M • Active Transportation (Bicycle & Pedestrian)
° Bob Jones, Coastal, and South Anza Trails
° Promenades & Boardwalks
$9M
TOTAL $200 M
*Dollar amounts shown in millions (M) reflect estimates from a half-cent sales tax generating $35M/year for 20 years, unescaleted for inflation. Actual dollar amounts may fluctuate based on local retail sales and inflation, but distributions are guaranteed as a relative percentage of total funds collected.

Attachment 1

LOCAL ROADS FIRST

SLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary Draft 3-5-24
$66 M
66%
$34 M
34%

NORTH COAST PROJECTS
$100 M
Local Projects - 66% $66 M
Morro Bay $21 M
• Road repairs, safety, and congestion improvements
° Pavement management program programs (i.e. Road Repair) ° Local Roadway Safety Plan implementation projects
° Embarcadero congestion improvements
° South Bay Blvd. climate adaptation roadway improvements ° Pedestrian Safety
° Bridges
° Public docks
° Tidelands park boat ramp
° Roadway striping
° Safe Routes to School
° Public Transit for Seniors, Persons with Disabilities, and Veterans Cambria $10 M
• Road Repairs, Safety and Congestion Improvements to Burton, Ardath, Main, Windsor, Highway 1 Cayucos $4 M
• Road Repairs, Safety Improvements, and Downtown Improvements Local Projects
Regional Projects Morro Bay
Cambria
Cayucos
Los Osos
Other/Unincorp.

Regional Road Safety
Mobility for All
$25 M
$20 M
$15 M
$10 M
$5 M
Attachment 1

LOCAL ROADS FIRST

SLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary Draft 3-5-24

NORTH COAST PROJECTS
Los Osos
• Road Repairs, Safety Improvements, and Downtown Improvements identified in the Community Plan, including 2nd Street revitalization and LOVR corridor multiuse path $20 M
Other/Unincorporated $11 M
• Road Repairs and Safety Improvements for all North Coast Unincorporated areas $6 M • Community Road Safety & Congestion Improvements
° Safe Routes to School
° Public Transit for Seniors, Persons with Disabilities, and Veterans $5 M
Regional Projects - 34% $34 M
Regional Road Safety Improvements $17 M
• Highway 1 Safety improvements (i.e., lanes, interchanges, crossings, ramps, bus, vanpool, parallel routes, etc.)
• S. Bay Blvd. multimodal, capacity, and climate resiliency improvements Mobility for All $17 M
• Public Transit for Seniors, Persons with Disabilities, and Veterans $8 M • Active Transportation (Bicycle & Pedestrian)
° Coastal Trail
° Chorro Valley Trail
° Boardwalks
° Pedestrian/bicycle safety and operational improvements on Los Osos Valley Road between 9th and Montana de Oro State Park
$9 M
*Dollar amounts shown in millions (M) reflect estimates from a half-cent sales tax generating $35M/year TOTAL $100 M for 20 years, unescaleted for inflation. Actual dollar amounts may fluctuate based on local retail sales and inflation, but distributions are guaranteed as a relative percentage of total funds collected.

Attachment 1

LOCAL ROADS FIRST

SLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary Draft 3-5-24
$102 M
66%
$52 M
34%

CENTRAL COUNTY PROJECTS
$154 M
Local Projects - 66% $102 M
San Luis Obispo $77 M
• Road Repairs to Los Osos Valley Road, Broad Street, Tank Farm $37 M • Community Road Safety & Congestion Improvements
° East/West major roadway safety and mobility improvements (Tank Farm and South Street) ° Broad St. Safety Improvements (South St. to Buckley)
° Foothill Safety Improvements (Patricia to California) ° Intersection Safety Improvements (Foothill & Santa Rosa, California & Taft) ° Prado Road Improvements
° Local safety and intersection improvements
° Safe Routes to School (Laguna, CL Smith, Sinsheimer, and SLO High crossings) ° Public Transit for Seniors, Persons with Disabilities, and Veterans $40 M
Avila Beach $3 M
• Road Repairs and Safety Improvements
Local Projects
Regional Projects San Luis Obispo
Avila Beach
Other/
Unincorp.

Regional Road
Safety
Mobility
for All
$80 M
$70 M
$60 M
$50 M
$40 M
$30 M
$20 M
$10 M
Attachment 1

LOCAL ROADS FIRST

SLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary Draft 3-5-24

CENTRAL COUNTY PROJECTS
Other/Unincorporated $22 M
• Road Repairs and Safety Improvements for all Central County Unincorporated area (Orcutt, Foothill, Buckley)
$10 M
• Community Road Safety & Congestion Improvements
° Los Osos Valley Road (Laguna Middle School to Foothill) ° Highway 227
° Intersection improvements at Los Osos Valley Road & Foothill ° Safe Routes to School (San Luis Bay Drive and Los Ranchos) ° Public Transit for Seniors, Persons with Disabilities, and Veterans $12 M
Regional Projects - 34% $52 M
Regional Road Safety Improvements $30 M
• US 101 Regional Safety Corridor improvements, between Cuesta Grade and Avila Beach Dr. to address safety, mobility, and congestion issues, based on the latest adopted plan (i.e. lanes, interchanges, crossings, ramps, bus, vanpool, parallel routes, etc.) • Highway 227 corridor safety and congestion improvements (between Tank Farm and Price Cyn) Mobility for All $22 M
• Public Transportation, Senior Transportation, and Disabled Services $11 M • Active Transportation (Bicycle & Pedestrian)
° Coastal Trail
° Chorro Valley Trail
° Bob Jones Trail
° Edna/Anza Trail
$11 M
*Dollar amounts shown in millions (M) reflect estimates from a half-cent sales tax generating $35M/year TOTAL $154 M for 20 years, unescaleted for inflation. Actual dollar amounts may fluctuate based on local retail sales and inflation, but distributions are guaranteed as a relative percentage of total funds collected.

Attachment 1

LOCAL ROADS FIRST

SLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary Draft 3-5-24

SAFEGUARDS IN THE PLAN

SAFEGUARDS
The Local Road Repair
& Transportation Safety
Investment Plan includes
strong taxpayer safeguards
to ensure that the projects
and programs approved by
the voters are funded and
delivered as promised.

Included in the plan:
• 20-year sunset date
• 1% administrative expense cap
• Independent Taxpayer Oversight Committee
• Annual independent audit and annual reporting
• Strategic implementation plan required to be
developed with local input groups
• No revenue generated shall be used to replace fair
share contribution from new development
• Requirements that funding be used to augment, and
not replace, local funds
All funding stays local and cannot be
stolen by Sacramento.

Attachment 1

LOCAL ROADS FIRST

SLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary Draft 3-5-24

SAFETY & RELIABILITY
Safety and reliability is critical to our transportation system’s function. The Plan aims to reduce fatalities and serious injuries on our highways, streets, and roads, while improving system reliability by focusing on operational efficiency and resilency to environmental changes and natural disasters.

IMPROVED MOBILITY
Quality of life depends on our ability to access jobs, goods, and services.

The Plan will improve mobility by ensuring transportation to and from places such as work, school, shopping centers and medical appointments remains accessible & affordable for everyone living and working in the San Luis Obispo County region.

TRAFFIC CONGESTION RELIEF
Traffic congestion increases travel times and has a harmful effect on air quality. The Plan will improve travel times and preserve our air quality by investing in transportation solutions that reduce traffic congestion across our region.

GRANT LEVERAGE
Our region competes for grant funding with other California regions. Many grants require applicants to provide local match money to win back State and Federal funds through these grant programs. The Plan leverages funding collected from this half-cent sales tax to return our fair-share of State and Federal funds to the region. By securing funds locally through The Plan, San Luis Obispo County and its cities qualify for an extra $900 million in competitive grants.

ECONOMIC VITALITY
Our region depends on goods movement, travel and tourism to support our local economies. The Plan ensures our communities will continue to prosper by securing funds for the transportation infrastructure that is needed to balance economic growth and development.

BENEFITS OF THE PLAN
Attachment 1

LOCAL ROADS FIRST

SLO COUNTY & CITIES
Local Road Repair & Transportation Safety Investment Plan Summary Draft 3-5-24

ABOUT THE PLAN
Ensures local funding
collected stays in local
communities
Guarantees funding
cannot be re-allocated to
other projects and must
be spent on improving
transportation
Creates jobs that will
support the maintenance
and improvement of
transportation infrastructure
in San Luis Obispo County, its
cities and communities
Brings more Federal and
State tax dollars back to
San Luis Obispo County
through competitive grant
programs
The San Luis Obispo County region will need $5.4 billion in transportation infrastructure over the next 23 years, but only expects $3.1 billion in available funds. With a $2.3 billion projected deficit, basic transportation projects such as fixing potholes, improving road safety, and reducing traffic congestion cannot be implemented.

The Local Road Repair & Transportation Safety Investment Plan would add a half-percent sales tax to every dollar spent within the region, generating $700 million over 20 years (unescalated for inflation). Funding would be allocated to each subregion based on its population and be required to stay local, with a minimum of 99% going to improve transportation infrastructure and safety. In addition, jobs would be created, public transit would be improved, and tourists would pay for the roads they use.

LEARN MORE AT LOCALROADSFIRST.COM
Attachment 1

Local Roads First:

A Roadmap to
Transportation
Independence
Presentation on the Draft
Transportation Investment
Plan
Summer 2023
March & April 2024
Attachment 2

2 Introduction to SLOCOG
Connecting Communities
(7 cities & SLO County)
Founded
in 1968
San Luis Obispo County & 7 Cities
 Arroyo Grande
 Atascadero
 Grover Beach
 Morro Bay
 Paso Robles
 Pismo Beach
 San Luis Obispo
+40,000 new people
Attachment 2

23-Year Outlook Unfunded Need
Highways, Interchanges -$687M
Major Roads, Downtowns -$372M
Local Road Maintenance -$400M
Public Transit/Senior Mobility -$100M
Bikes, Peds, Safe Routes to School -$714M
Attachment 2

4 The why: A Shrinking Fuel Tax
1970s, ‘80s, ’90s:

More cars & travel
meant more Revenues
2001-2024+
Conservation + Hybrids +
EVs means flat Revenues
2035 and beyond
No new gas/diesel cars
to be sold in CA
2023: EVs were 25%
of all new car sales
Attachment 2

Fallacies, Misperceptions, and Unicorns
Gas Tax will repair our roads
- No
Gas Tax went up, it will fix all our roads
- No
The State will reprioritize its funds to our roads
- Nope
Local funding will be reprioritized to roads
- Maybe/maybe not
Caltrans will fund 101 improvement
- two major improvements in 25 years
EV owners pay an average amount for road repairs
- Not even close
The State will change…..’something’.....that will fix everything - No chance
Attachment 2

Local Road Maintenance Issues Persist 2022 Pavement Condition Index 100
90 80
70 60
50 40
30 20
10 SLO: 70
Pismo Beach: 67
Morro Bay: 63…
County: 60
Paso Robles: 57
Arroyo Grande: 56
Grover Beach: 52
Atascadero: 49
Morro Bay: dropped 15 points
from 63 to 48 in 2023.

Atascadero: 47 to 49 over 8 years,
but ‘Failed’ (25 or less) increased
from 16% to 25% (2023) now 22%
County roads were:
63 in 2013
64 in 2017
60 in 2020
60 in 2022
Attachment 2

7 Highway Congestion
Shell Beach: South of Avila Beach Rd Atascadero: North of San Anselmo S.Co Peak Hour:
6,400 cars
N.Co Peak Hour:
10,000 cars
Attachment 2

Neighboring County Comparison
• Currently, 25 Counties (89% of
Californians) HAVE a Special
Transportation Tax
• San Benito – 2018 – 30 years
• Monterey – 2016 – 30 years
• Santa Cruz – 2016 – 30 years
• Santa Barbara - 2008 – 30 years
• San Luis Obispo –Lost out on
~$30m/yr over 7 years
Attachment 2

9 What is the Cost?
Attachment 2

For the San Luis Obispo Region, a ½ cent sales tax would:
 Raise $35m / year
 Be used to Leverage ~$1 billion out of Sacramento
 Be protected from Sacramento (cannot be stolen)
 Speed up project delivery (reducing cost)
 Guarantee every penny for our local TRANSPORTATION priorities (no bait and switch)
 Contain Safeguards (accountability, oversight, audits, reporting, a sunset date, and 1% maximum for SLOCOG administration)
 Provide that tourists pay a tax guaranteed for our roads (finally!) 10 Draft Local Road Repair & Transportation Safety Investment Plan Attachment 2

11 Draft Local Road Repair & Transportation Safety Investment Plan Fair and Understandable
Local Distribution Formula:
• 4 Subregion Population %
• 66% to Local Direction
• %City
• %City
• %Unincorporated
($3M added to 4 smallest cities
from uninc. subregional share)
Attachment 2

12 Draft Investment Plan: NORTH COAST
Attachment 2

13 Draft Investment Plan: CENTRAL COUNTY
Attachment 2

14 Draft Investment Plan: SOUTH COUNTY
Attachment 2

15 Draft Investment Plan: NORTH COUNTY
Attachment 2

16 Local Area Investments - Draft
Attachment 2

Key Regional Projects ………………………………..$84m
Regional Road Safety Improvements
 Highway 46E (US101-Jardine Rd.) safety imp./Union: $30M  North County US101 Regional Safety Corridor Imps: $37M  At US 101 Northbound off-ramp to Highway 46E
 Between Cuesta Grade and San Miguel, to address safety, mobility, and congestion issues
Mobility for All $17 M
 Public Transit: Seniors/Persons w/ Disabilities/Veterans $7M  Active Transportation (Bicycle & Pedestrian) $10 M
 Salinas River/N. Anza Trail corridor
 Paso Robles River Trail/Grand Loop trail
 Templeton, Vineyard Drive improvements
 Atascadero Westside corridor
17 Draft Investment Plan: NORTH COUNTY
Attachment 2

 Feb 7: SLOCOG Board Direction to Present Draft to Member Agencies, Seek Feedback, Continue Engagement Efforts, Develop Polling
 March: Polling by phone/text/email
 March/April: Draft TIP review/comment by all jurisdictions  3-5: San Luis Obispo
 3-11: Grover Beach
 3-12: Arroyo Grande
 3-19: Pismo Beach & Paso Robles
 3-26: Morro Bay
 4-9: Atascadero & County Supervisors
 May 1: SLOCOG Approve/Deny Final TIP
 May: All Jurisdictions Approve/Deny Final TIP
 May 29: SLOCOG Determines Direction
 November 2024 Election
 Fail => No change
 Pass => Delivers Investment Plan
 Other Future Election
18 Steps and Timing
Learn more at: www.localroadsfirst.com
Attachment 2

Attachment 2

20 ILLUSTRATIVE LOOK AT PCI
Attachment 2

F-2-1

SAN LUIS OBISPO COUNCIL OF GOVERNMENTS

STAFF REPORT
MEETING DATE: FEBRUARY 7, 2024 ITEM F-2

SUBJECT
Staff Contact:

Supplemental Funding Update: Draft Investment Plan, Engagement Results, and Next Steps
James Worthley

SUMMARY
Transportation funding for future infrastructure falls well short of the need. A dedicated, local transportation sales tax is an invaluable tool that 25 California county transportation authorities use to deliver timely, cost-efficient transportation improvements to their communities. Adding San Luis Obispo County to the list of California’s self-help counties would help unlock hundreds of millions of dollars in additional transportation funding, guaranteeing, and delivering much-needed transportation improvements and repairs for our residents and to our communities.

A two-thirds vote is a challenging threshold. Successful Investment Plans contain funding distributions and investments that are grounded in polling results, focus groups, and stakeholder input. The desired result is an equitable distribution of investments with a wide-range of investments to address multiple concerns. The member agencies must come together to identify a distribution of funds and investments that is fair and understandable by the voters.

A San Luis Obispo regional, ½ cent sales tax for transportation would:

Generate $35M annually, escalating each year (or $700M over 20 years without escalations) Reclaim $0.8M to $1M, annually, from State funds
Collect a $3M to $5M one-time windfall from State funds Qualify the region to receive our fair-share of State and Federal funds

RECOMMENDATIONS
Staff: 1) Receive and Comment
2) Adopt Distribution Formulas
3) Direct Staff to Present Draft Investment Plan to Member Agencies and Seek Comments and Feedback and Proceed with Development/Refinement of Draft Materials 4) Amend Consultant Contract to Extend the Polling Contract (No increased funding) 5) Direct Staff to Return on May 1 for SLOCOG Board Determination of Next Steps.

TTAC: Support Staff Recommendation.

CTAC: Support Staff Recommendation.

SSTAC: Support Staff Recommendation.

City Managers: Reviewed/Supported the Distribution Formulas

DISCUSSION
To have a reasonable chance of passage by 2/3rd of voters, a measure must focus on the projects and improvements that voters identify as their priorities and be accompanied by robust community and leader engagement, education, and communication to raise awareness of the region’s transportation challenges and build community consensus around a proposal. Staff worked with its consultants, gained input from community groups/organizations, responded to media inquiries and interviews, and hosted a website with information and a survey to gain input from the public.

Benefits of a Dedicated Transportation Sales Tax
Transportation investments improve the region’s: safety, reliability, mobility, goods movement, and economic vitality; and a sales tax is paid by all users of the transportation system, including tourists.

Regions (self-help counties) with more local funding have a competitive advantage: they are better able to build and maintain infrastructure and services, recapture competitive funds (our paid taxes), and have more flexibility to build partnerships and prepare for new technologies and future challenges.

Attachment 3

F-2-2
Our jurisdictions require new funds to repair our roadways, to deliver regional improvements, to improve transportation overall, and to offer as a match in order to capture competitive State or Federal funds. Higher funding leverages or ‘wins’ more funds from Sacramento. Without our own dedicated transportation sales tax, we are effectively providing a ‘tax holiday’ to our tourists that come from the 25 counties with it.

Ability to Leverage
Comparing one investment category (Active Transportation), Santa Cruz recently ‘won’ $147m from Sacramento using their 2016 sales tax measure funds. The Santa Cruz region has another $53m remaining in measure funds to use as leverage for more Active Transportation grants. In comparison, SLOCOG’s long range plan projects $184m for Active Transportation in our region between 2023 and 2045. Monterey will spend $600m from their 2016 measure funds on road maintenance and improvements in the coming decades. This is on top of their local jurisdictions’ annual investments and state or federal allotments, and they will use some of it to leverage or ‘win’ State and Federal funds, outpacing our region.

With the failure of Measure J in 2016, the region lost out on over $180M in the last 6 years and this could have easily doubled by capturing grants and competitive funds returned to the region. The impact of a dedicated transportation sales tax for successful measure counties is evident. Those counties deliver more projects and investments, faster, and at a lower cost.

Shrinking Fuel Tax
Reliant on the fuel tax, locally, we have a funding problem. Most of our jurisdictions have pavement conditions that are too low which cost more to maintain at a low level than to maintain at a ‘very good’ level and do not have a path to reach it. Our primary artery, U.S. 101 has recurring congestion in South County and emerging congestion in North County and we do not have the funding necessary to address its existing or emerging congestion or safety issues.

The Insufficient Status Quo
The region’s current funding path relies not only on stable state and federal fund sources but also aspires to win competitive state and federal transportation grants. Every two years, SLOCOG programs its formula allotment of state and federal transportation funds. In January, the SLOCOG Board approved the 2024 RTIP, a five-year capital investment program (FY 24/25 through FY 28/29).

The investment portfolio contains past and present funding secured and allotted by State and Federal sources. SLOCOG received $33.9M (new funding) to program in the outer years. Half of this amount was to address cost increases on six projects that were either “fully funded” in the 2020 fund cycle or realized project-cost increases. In order to complete all 20 projects (only 7 are now fully funded), $298M is still needed to close the shortfall This equates to 17+years based on status quo funding ($34M every two years) without State and/or federal grants or any additional project cost increases.

Projects are Cheaper Now than Tomorrow
Regions with a sales tax have a significant advantage over those without. When their new improvements are ‘fully funded’ but run into unexpected project escalations or inflation, these regions can use sales tax revenues to close the gap rather than losing the project (sometimes grant funded) or delaying for several months or years to await additional funding (and incurring further cost escalations). All regions are susceptible to State budget cuts (i.e., the 2024 proposed 50% cut to REAP funding in the State) but measure counties are better equipped to backfill and deliver improvements in spite of the state cuts.

We are Better Together
Setting aside our own self-interests can be challenging, but a regional approach helps to build the infrastructure for today and the next generation. There is a holistic benefit of a regional measure. City measures collect and spend only within their borders, yet, our residents travel beyond the singular bubbles of each city, whether for commuting, shopping, or entertainment. We all do better when everyone does better. An increase of transportation funding across the region provides benefits (safety, access, mobility, cost-savings, etc.) to each individual, community, and jurisdiction. With both local needs and regional needs, collaboration and coordination would be a key aspect if both a regional measure and a local measure were on the same ballot.

Attachment 3

F-2-3
Draft Local Roads Repair & Transportation Safety Investment Plan: Attachment 1 The draft investment plan identifies how 20 years of collected, unescalated, revenues would be allocated. Staff, working with its consultants and considering all feedback to date, developed a draft (20-year, 1/2 cent sales tax) Investment Plan based on the following distribution premises.

1. Distribute all collected revenues by (4) subregions based on population. (i.e., 35% of the population resides in the North County and 35% of the funds would be used in the North County)

2. Within each subregion, distribute 66% of funds to its jurisdictions for Road Repairs & Community Road Safety & Congestion Improvements based on relative population (with a $3m increase to the four smallest cities).
a. Two Local Investment categories are: Road Repairs and Community Road Safety & Congestion Improvements.
b. Respective investment levels are to be customized to the needs and priorities of each city and community (pending City Council, staff, and public feedback.)

3. Within each subregion, distribute 34% of funds for Regional Road Safety & Congestion Improvements and for Mobility for All.
a. Two Regional Investment categories are: Regional Road Safety Improvements and Mobility for All (i.e., transit, senior services, and active transportation). b. Regional Investment categories are to be customized to the needs of each subregion. (pending additional feedback).

Staff reviewed various data metrics (including Population, Sales Taxes collected, Road miles, and Employment by city and subregion) and various combinations with the City Managers in January 2024 and received concurrence for the previously described funding distribution methodology.

Key Questions for a Transportation Measure

1. Is there an unfunded need?

2. Is a dedicated transportation sales tax the best option?

3. Is it fair and understandable?

4. Does it improve your travel?

5. Is it protected?

6. Is it supportable?

1. Is there an unfunded need? Yes
Outreach and Engagement
SLOCOG staff engaged our community groups and organizations to give citizens the opportunity to provide input to the needs of their communities. SLOCOG hosted four focus group meetings and developed a website with a public survey. The message that ‘there are needs’ resounds at every level.

Engagement Meetings
Staff and SLOCOG’s Engagement Consultant were invited to present a 20-minute PowerPoint discussion to 26 community groups and organizations over the past 6 months. In addition to these presentations, staff, or the consultant, made a 3-minute comment at nine public meetings, engaged with six media outlets garnering local press, and held four regional focus groups.

Focus Groups
In Fall 2023, four regional Focus Groups were held and facilitated by SLOCOG’s Consultant, MMKelly Consulting. Staff used voter files to identify an ideal representation (political party, location, age (<25, 25-44, 45-65, 65+) and gender). Staff used a random selection tool to fill the categories until a representative balance was achieved with confirmations of 12 members for each subregion’s focus group. Each Focus Group was held and notes were drafted to include: General Views, Identified Transportation Needs and Improvements, Funding Issues & Feedback, and Additional Insights. The Consultant’s memo is Attachment 2.

Website
Staff developed and hosted its website, www.localroadsfirst.com and developed content to include FAQs, meeting information, past projects completed by SLOCOG in each subregion, and developed a simple online survey tool. Responses were collected (through November) and the following figures show results, by subregion, of which investment type garnered the highest support. Investment types Attachment 3

F-2-4
were ranked 1-10 and included: Improve Highways and
Interchanges; Improve Local Road Intersections; Repair Roads, Potholes and Bridges; Build More Safe Routes to School and Pedestrian Improvements; Extend Bike Lanes or Trails; Expand Buses or Senior Transportation Options; and Safety Improvements. Additionally, an open-ended question offered respondents to share what transportation improvements are needed (included as Attachment 3). Results of this survey were shared and discussed with consultants.

Pavement Conditions Index (PCI)
A few jurisdictions are doing well, or making strides,
but most are not keeping up. A few examples are:
• Morro Bay’s PCI dropped 15 points in 2023.
• Atascadero’s 2022 Road Report identified its
PCI reached 49 (2 points higher than 2015)
with 25% of all roads rated as ‘Failed’ (16%
failed in 2015)
• For the San Luis Obispo County
unincorporated areas, the PCI was:
o 63 in 2013
o 64 in 2017
o 60 in 2020
o 60 in 2022
Fuel Taxes
Existing State and Federal funding are based
upon an antiquated system of cents per gallon of
fuel. The system predated the proliferation of
mileage improvements, hybrids, ethanol fuels,
and electric vehicles. The Federal gas tax has
had no adjustment in over 30 years. Further, 20%
of all new cars sold in CA in 2022 were electric
and this market share will grow. Fuel taxes have
not kept up and will only diminish over time. A
local solution is required to address our current
and future local problems to protect our quality of
life.

North County Survey Results
South County Survey Results
North Coast Survey Results
Central County Survey Results
Attachment 3

F-2-5
Volumes on US 101
U.S. 101 is our major artery, connecting six of our cities, and many unincorporated communities. Twice in 25 years, SLOCOG has been fortunate to leverage State grants for its improvement. In the late 1990s a grant award funded Cuesta Grade to be widened and improved with truck climbing lanes with construction completed in 2003. Two decades later, a new State grant was awarded to improve U.S. 101 in a four-mile section (southbound only) in the Shell Beach area. The Shell Beach Straits has long been the most regularly congested and problematic section. However, over the past decade, volumes on U.S. 101 have been growing in the North County with peak hour numbers higher than that in Shell Beach. (See Figures below). In several sections, 2021 Peak Hour volumes match and surpass those of 2019; 2022 volumes are not yet available.
5900 - 6400
9000 - 10200
Attachment 3

F-2-6

2. Is a dedicated transportation sales tax the best option? Yes.

The 2023 RTP examined potential funding sources specific for transportation, including – Fuel Tax, Vehicle Fees, Impact Fees or VMT fees, Bonds, and others. For a single improvement, bonds (repaid through income tax, local sales tax, local property tax, or other levied taxes) may offer a solution.

Bonds significantly impact those that currently (or in the future) reside near the improvement, but it benefits everyone that uses it. A broader funding source is needed, that will not diminish over time (fuel tax) and that is paid for by all those that benefit, including tourists. The unfunded needs are across the region; the benefits of improvements would benefit all users and residents.

While the cents per gallon of fuel tax (for the State but not the nation) is indexed to inflation, EVs will erode the total gallons purchased affecting the total tax collected. In tourist-attracting regions, sales tax outperforms inflation. The
adjacent chart shows the
effects of inflation (orange
line) on our region’s sales tax
(of what a ½ cent raises)
originating in FY 09/10. The
blue line follows the actual
amount raised from a ½ cent
sales tax. From 2010 to 2020,
the region grew in population
by less than 5%; inflation
grew by 32%; sales taxes
nearly doubled.

Monterey county (region)
voters approved their sales
tax in 2016 and began
spending an additional $13M
annually (and growing) on
road repairs – above their
local, state, and federal allotments. Santa Cruz County (region) voters also approved their transportation sales tax in 2016 and have successfully used it to leverage over $100M in 2022 from a single State competitive pot. Our region is at a disadvantage to compete and capture State and Federal grant funds without our own dedicated sales tax.

The 25 counties with their transportation sales tax annually receive a direct allocation from statewide gas taxes. Annually, we lose out on this to a tune of $0.8M to $1M and cannot capture these funds.

Essentially, the State competitive system is rigged to reward those with a dedicated transportation tax, and those regions without will continue to lose out and leave dollars on the table. Additionally, new transportation-specific voter-approved measures receive a one-time share of a $20M set aside from the State, up to $5M.

3. Is it Fair and Understandable? Yes.

The draft Investment Plan uses population percentages to distribute funds to each subregion – guaranteeing each a fair-share amount. One complaint heard and lesson learned from Measure J in 2016 was the need to be clearly fair in the distribution of revenues and to make the distribution easily understandable. Additionally, staff recognizes that ‘one size does not fit all’ and this is reflected within the draft investment plan where subregions differ in investment areas of focus.

Our economy and quality of life are dependent on not only a good transportation system but one that offers our residents and tourists options of travel. The transportation system benefits everyone:
residents, commuters, shoppers, recreationalists, drivers, bus riders, cyclists, pedestrians, and tourists. State and federal transportation funding comes from a gas tax which is no longer a fair funding mechanism. EV owners pay no gas tax; the fee they pay for roads is far lower than an average vehicle’s gas tax and is regardless of total miles traveled. Hybrid owners pay roughly half of their gasoline equivalents. All non-drivers benefit without paying a fuel tax. Tourists with gasoline and hybrid vehicles pay a gas tax, however, revenues that are generated by the fuel tax are deposited to the Attachment 3

F-2-7
State’s Highway and Users Tax Account (HUTA) and its distribution of formula funds are largely based on population – which means our region receives the same proportion of fuel taxes whether we have 1,000 tourists or one million. 100% of a dedicated-transportation sales tax stays local for the betterment of our system and be paid by all users of the transportation system, including tourists.

4. Does it improve your travel? Yes.

The draft investment plan guarantees a wide-range of investments for:
• Rural areas and urban areas
• Personal vehicle drivers, and cyclists, and bus riders • School aged children and senior mobility needs
• Road repairs and betterments
• Local roads and highways
• Safety and congestion relief
• Economic progress, accessibility, and mobility improvements.

Through polling, surveys, engagement meetings, and focus groups the list of needs is long. The investment plan includes many, but it cannot include all requests without sacrificing investments in another mode, community, or category.

New funds through a dedicated sales tax would become an added piece of the larger funding picture.

Similar to other COGs, SLOCOG receives and invests over 20 state or federal revenue sources for transportation. New funding grows the pie for all things transportation in all areas of the region.

5. Is it protected? Yes.

As a ‘Special Tax’ a dedicated sales tax differs from a ‘General Tax’. A special tax guarantees transportation investments where voters want, need, and expect them; effectively taking away any bait and switch actions or reprioritization by any future board or council. General taxes go into the local general fund, can go for any purpose for a city or county, and are determined annually by the (then) current elected officials. Voters must trust that general funds will be spent as they hoped, but every two years an election may replace three-fifths of the governing body.

Special taxes – like a dedicated transportation tax – go solely to improve transportation and the voter measure contains an Investment Plan that details exactly what and where the funds will go, and these funds do not go into a general fund. Our draft Investment Plan is attached and if sent to and approved by voters, distributions and expenditures would strictly adhere to it. Current and future elected officials, and staff, must follow it for all expenditures and distributions.

On an annual basis, the 25 counties (our population is greater than 6 of these counties) -which comprise 89% of the State’s population- have dedicated transportation sales taxes that collectively raise more than the gas tax statewide. The San Luis Obispo region has less than 1% of the State’s population; imposing or expecting change to transportation funding in Sacramento is pointless.

Our local funds would be required to be spent within our region – they cannot be borrowed, redirected, or stolen by Sacramento. Some counties have had their dedicated transportation sales tax for decades and voters have renewed these taxes (like in Santa Barbara) after realizing the benefits and recognizing the promises made were kept, and the funds cannot be stolen.

A voter measure would include safeguards, including an independent citizens’ oversight committee, a sunset date, annual independent audits and reporting, a 1% administrative cap, and requirements for a local maintenance of effort and for new development. Safeguards would be drafted for review and input at the May SLOCOG Board.

6. Is it supportable? By the SLOCOG Board, City Councils, Supervisors, and Voters (TBD) At this point, the draft investment plan is ready for review, for comments, and for modifications. Staff anticipates changes to occur to this draft investment plan over the coming months to improve it.

In 2016, Measure J received 66.3% support of voters. Transportation conditions and needs have not improved notably and transportation funding faces its latest challenge of a growing share of EVs.

Attachment 3

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Any future SLOCOG Measure would allow voters the final say on such a new tax; would increase their voice; would require the necessitated 2/3rd approval; would include accountability and transparency with no bait and switch; would have a sunset date; would have safeguards and be protected from Sacramento; and would dedicate its funds to improve our transportation system only.

Additional Requirements and Restrictions
If February Board direction is to proceed with the development of draft materials, all components (Ordinance, Safeguards, and Investment Plan) must be developed in time for the May 1st SLOCOG Board meeting. The draft sections of an ordinance will include:

1. Draft Title: An ordinance providing for the imposition of a one-half of one percent retails transactions and use tax by the San Luis Obispo County Local Transportation Authority for the San Luis Obispo County and Cities Road Repair, Traffic Relief, and Transportation Safety.

2. Draft Compliance with CEQA: All projects funded with these transportation sales tax funds will be required to complete appropriate California Environmental Quality Act (CEQA) and other environmental review as required.

3. Draft Ballot Label: Draft 75-word ballot labels shall be further tested in upcoming polling:

The proposition to be placed may read as follows:

In order to repair and maintain local streets, highways, bridges, and infrastructure; fix potholes; improve highway and roadway safety; provide safe routes to schools; reduce traffic congestion; make pedestrian, bike, and transit improvements; and qualify for 900 million dollars in State and Federal grant funds; shall San Luis Obispo County’s measure establishing a half cent sales tax for transportation improvements be adopted, providing approximately 35 million dollars annually for 20 years that cannot be taken by the State, with citizen oversight and all money locally-controlled?

4. Draft Investment Plan Amendments
a. To address changing population: In FY2032/33, amend local distribution categories based on new population as determined by the 2030 Census. This would amend the four subregions’ respective shares relative to each other and, within each subregion, the respective shares of jurisdictions while maintaining the $3m increase to the 4 smallest cities.
b. To address new or changed laws, requirements, technologies, or needed investments:

Amendments to the Plan would require a high threshold. No changes to the 66%:34% (local:regional split) would be accepted. No changes to the relative share of the four subregions or shares within each subregion (jurisdictional splits) with the exception of the 2030 Census noted above. Any changes within the Local Investment category would be allowed if supported by 2/3rd of the Independent Taxpayer Oversight Committee, a 2/3 approval by the Authority, AND majority-vote approvals from a majority of the city councils constituting a majority of the incorporated population, AND majority vote of the Board of Supervisors. Any changes within the Regional Investment category – while maintaining the promised share of funds within each subregion -- would be allowed if supported by 2/3rd of the Independent Taxpayer Oversight Committee, and a 2/3 approval by the Authority by a roll call vote, with prior notice (30-day) provided to all jurisdictions.

5. Draft Cooperative Fund Agreements: To maximize the effective use of funds, revenues may be transferred or exchanged between or among jurisdictions. Jurisdictions receiving funds may, by annual or multi-year agreement, exchange funds provided that the percentage of funds allocated as provided in the Investment Plan is maintained over the duration of the period of time the tax is imposed.

Attachment 3

F-2-9

6. Support for Local Job Creation and Contracts

7. Eligible Uses of Categories: Investment categories are still undergoing refinement, but staff recommends that the following be applied:

Local Investments
Road Repairs:
• Potholes, repaving, repair, and maintenance,
• Maintaining, improving, or constructing streets, roads, bridges, and bicycle and pedestrian facilities (including maintenance of public docks), • Safety Improvements,
• Storm damage repair to transportation facilities,
• Roadway drainage facilities,
• Traffic signal coordination, intersection and channelization, • Traffic management,
• Landscaping Maintenance,
• And other transportation purposes as allowable under the Surface Transportation Program.

Community Road Safety & Congestion Improvements:
• Community Enhancements, such as downtown streetscapes, transportation enhancements, way finding, and accessibility improvements, street lighting, street furniture and trees
• Safety Improvements,
• Bus and rail transit services and support facilities, • Programs that reduce transportation demand,
• Reduced transit fares for seniors, veterans, students, and persons with disabilities, • Education and incentives designed to reduce single occupant auto trips, • Downtown streetscapes and transportation enhancements, multiuse paths, sidewalks, Safe Routes to School, and ADA improvements.
• And other transportation purposes as allowable under the Surface Transportation Program.

Regional Investments
Regional Road Safety Improvements ($ and % varies by subregional needs) • Highways and Major Roadway improvements for: safety, congestion-relief, and mobility improvements. (i.e., US 101 Northbound offramp to Highway 46E) Mobility for All ($ and % varies by subregional needs)
• Public Transit investments (Seniors, Persons with Disabilities, Veterans, Fixed Route, etc.)
• Active Transportation (Bicycle and Pedestrian improvements on regional trail corridors, Boardwalks, Promenades, etc.)
Budget and Next Steps
Budget
The effort remains within the scope of the adopted FY 23/24 budget.

Polling
A new statistically valid poll (phone, cell, text, internet) is funded to occur in March with results to follow. True North Research will perform a full-size tracking poll, expecting over 900 responses using a statistically valid methodology. This poll will test success of recent public engagement efforts and public concern about transportation and awareness of needs; test support for transportation-related issues and quality of life investments; test support for a new tax, and related issues, such as taxpayer safeguards; and assess support for overall goals of a local sales tax plan. Staff, working with city managers, aim to add a question that also tests compatibility of regional and local measures. Top lines Attachment 3

F-2-10
will be produced and presented to the SLOCOG Board and a final report prepared. A contract amendment (attached) is necessary to extend the existing contract.

Engagement and Outreach
Staff will continue engagement with interested groups and organizations with the draft Investment Plan. (February – April). All engagement efforts will remain within the current budget.

Revised Investment Plan
Following meetings in February – April, and coupled with new polling results, staff will make necessary revisions to the draft Investment Plan and present changes to the SLOCOG Board on May 1st for the determination of the next step. Staff will also present draft ordinance language for review and comment.

Public Meetings: Review and Comment
March 11 City Council Meeting –Grover Beach
March 12 City Council Meeting –Arroyo Grande
March 19 City Council Meeting –San Luis Obispo
April 9 City Council Meeting –Atascadero
TBD City Council Meeting –Morro Bay
TBD City Council Meeting –Paso Robles
TBD City Council Meeting –Pismo Beach
April 9 Board of Supervisors Meeting
May 1 SLOCOG Board Meeting – Approve/Deny Investment Plan; Review Polling results

ATTACHMENTS

1. Draft Local Road Repair & Transportation Safety Investment Plan

2. Focus Group Summary Memo from MMK Consulting

3. Survey Responses: Open Ended (North County, North Coast, Central County, South County)

4. Contract Amendment #2 with True North Research
Attachment 3

Attachment 4
RESOLUTION 24-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES

SUPPORTING THE PROPOSED LOCAL ROADS FIRST TRANSPORTATION TAX MEASURE WHEREAS, San Luis Obispo Council of Governments (SLOCOG) is an association of local governments in San Luis Obispo County, which is made up of seven cities, including the City of Paso Robles; and WHEREAS, SLOCOG is the federal-designated Metropolitan Planning Organization (MPO), the statedesignated Regional Transportation Planning Agency (RTPA), the Service Authority for Freeways and Expressways (SAFE), the Census Data Affiliate (CDA) and the Regional Ridesharing Program for the San Luis Obispo Region; and
WHEREAS, SLOCOG is considering placing a half-cent, countywide sales tax measure on the November 2024 ballot; and
WHEREAS, if the Measure is approved by 2/3rds of countywide voters, the revenue derived from the Measure will fund transportation projects across San Luis Obispo County for a period of 20 years; and WHEREAS, the Draft Implementation Plan indicates the City of Paso Robles will receive approximately $52 million in local project funding over the 20 year life of the Measure; and WHEREAS, the Draft Implementation Plan indicates the “North County” region (which includes, but is not limited to the City of Paso Robles) will receive approximately $84 million for regional projects over the 20 year life of the Measure; and
WHEREAS, the Measure will allow San Luis Obispo County to be less reliant on State and Federal funding while still getting its fair share, complete projects such as filling potholes and decreasing areas of congestion in a timelier manner, and significantly decrease the amount of differed local projects; and WHEREAS, all funds generated by the Measure would be required to stay local and remain directly allocated to community transportation projects with 99 percent going to improve transportation; and WHEREAS, the Measure will result in jobs being created, transit mobility increased, and tourists would pay for the roads they use; and
WHEREAS, funding for trails, pedestrian, and bicycle infrastructure will improve the quality of life for residents and visitors of Paso Robles; and
WHEREAS, funding of projects along State Route 46 and US 101 within the North County subregion will improve safety and goods movement within the County; and WHEREAS, funding for local road repair work will assist in improving the City’s pavement conditions.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. All of the above recitals are true and correct and incorporated herein by reference.

Attachment 4
Section 2. The City Council hereby supports the proposed Local Roads First Transportation Tax Measure.

APPROVED this 2
nd day of April, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Boyer, City Clerk

Attachment 5
RESOLUTION 24-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES

OPPOSING THE PROPOSED LOCAL ROADS FIRST TRANSPORTATION TAX MEASURE WHEREAS, San Luis Obispo Council of Governments (SLOCOG) is an association of local governments in San Luis Obispo County, which is made up of seven cities, including the City of Paso Robles; and WHEREAS, SLOCOG is the federal-designated Metropolitan Planning Organization (MPO), the statedesignated Regional Transportation Planning Agency (RTPA), the Service Authority for Freeways and Expressways (SAFE), the Census Data Affiliate (CDA) and the Regional Ridesharing Program for the San Luis Obispo Region; and
WHEREAS, SLOCOG is considering placing a half-cent, countywide sales tax measure on the November 2024 ballot; and
WHEREAS, if the Measure is approved by 2/3rds of countywide voters, the revenue derived from the Measure will fund transportation projects across San Luis Obispo County for a period of 20 years; and WHEREAS, the Draft Implementation Plan indicates the City of Paso Robles will receive approximately $52 million in local project funding over the 20 year life of the Measure; and WHEREAS, the Draft Implementation Plan indicates the “North County” region (which includes, but is not limited to the City of Paso Robles) will receive approximately $84 million for regional projects over the 20 year life of the Measure; and
WHEREAS, if approved, this Measure potentially limits the ability of Paso Robles voters to fund local projects in the future; and
WHEREAS, the proposed allocation of funding is based on population and not on another more equitable formula such as the percentage of or per capita amount of sales tax generated within a given City; and WHEREAS, allocating funding by population results in the City of Paso Robles subsidizing other projects throughout the County at the expense of much needed local road and transportation projects; and WHEREAS, the need for local road repair funding is significant; and WHEREAS, the City of Paso Robles estimates it needs $350 million to fully rehabilitate and repair local roads; and
WHEREAS, the amount of funding proposed from this Measure to go toward local road repairs is less than 25 percent of what the City receives annually from its locally-controlled “E-12” sales tax measure; and WHEREAS, the City of Paso Robles desires to retain 100 percent of any supplemental sales tax funding for transportation and roads projects for City projects.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:

Attachment 5
Section 1. All of the above recitals are true and correct and incorporated herein by reference.

Section 2. The City Council hereby opposes the proposed Local Roads First Transportation Tax Measure.

APPROVED this 2
nd day of April, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John R. Hamon, Jr., Mayor
ATTEST:

Melissa Boyer, City Clerk