Tel. 818 548-4844 Fax 818 547 www.cl.glendale. Crry oF GLENDALE, CALIFORNIA (613 East Broadway, Suite 200 Office of the Mayor Glendale, California 91206-4391 6740 May 19, 2016 Phillip A. Washington, CEO METRO One Gateway Plaza Mail Stop 99-25-1 Los Angeles, CA 90012-2952 Re: Measure R2 Dear Mr. Washington: This letter is written in response to Metro's request for comments during the public review of the draft expenditure plan and funding allocation structure of its proposed sales tax measure (known as Measure 2). We understand that Metro will be considering public comments received as it finalizes the draft expenditure plan and the Board decides whether to adopt the final structure and components in June or July 2016 to meet the submittal deadline for a November 2016 countywide ballot measure. After reviewing and analyzing Metro's potential ballot measure (Measure R2), the City of Glendale has the following comments on the draft Expenditure Plan. Tier 2 Transit Operators ‘The cities of Los Angeles, Burbank, Glendale and Pasadena, current recipients of Tier 2 Operator transit funding from Metro, are requesting a 4% annual allocation in funding from the proposed new Los Angeles County transit sales tax measure currently being considered by Metro, as outlined in our letter dated March 24, 2015 (attached). If approved by the voters, this requested allocation is envisioned to replace the current year-to-year Tier 2 Operators funding provided by Metro that is capped at $6 million annually and represents only a small percentage of the total annual service operating costs. In 2010, the Metro Board approved the Tier 2 Operators program to help fund regionally significant service that was unable to access the regional operating funds currently dedicated to municipal operators. The funding provided to the Tier 2 Operators is budgeted year to year and is contingent on the availability of a surplus in the Proposition A growth over CPI funds. The Tier 2 funding is also capped at $6 million per year which only covers approximately 18% of the total annual operating expenses, The request of a 4% allocation of a % cent transit sales tax will allow the Tier 2 Operators to Page 1 of 3recover an estimated 80% of our operating expenses. This new funding source would allow for the continuation and expansion of needed transit services in the Tier 2 cities. The year-to-year allocation leads to uncertainty for the operators and their riders. The ability to have a dedicated funding source for these regionally significant fixed route services will ensure that these services can continue to provide vital mobility for our residents and visitors. A stable, dedicated funding source is needed to ensure that these vital transit services can continue and grow. Increase the Local Return Our City and many of the region’s cities have requested an increase in the Local Return from the proposed 16%. This proposal is far below the Proposition A return of 25% and the Proposition C return of $20%. ‘The current 16% proposal is only one percentage point above the Measure R Local Return of 15%. ‘The cities and counties are dealing with the precipitous drop in State Gas Tax revenues. Our gas tax revenues have fallen from a high of $6.5 million in 2013 to $4.4 million this year (projection for current year). This is a structural and permanent revenue loss, as more vehicles become less dependent upon fossil fuels. The same declines in revenue are happening at the federal level. ‘These dramatic losses in revenues are already adversely impacting our ability to reduce congestion, improve access and safety of our local streets and highways. Based on past history, we doubt that either the State or Federal government will effectively deal with these precipitous declines in federal and state funding for streets and highways. This leaves the cities and the County stranded and local highways deteriorating at a rapid rate, while congestion increases. Our City estimates that over $6 million annually is needed to maintain the City’s existing streets and highways in our 30 square mile community. ‘The proposed 16% Local Retum is simply insufficient for the 40 year time period, especially considering that on top of the maintenance issues we must deal with the new federal and state environmental requirements. North Hollywood to Pasadena Fixed Transit Glendale would like to reiterate the City's support for the proposed North Hollywood to Pasadena transit link described in the Measure R2 plan as “BRT Connector Orange/Red Line to Gold Line.” Additionally, we would like to ensure that this project remains in the first 15°year build out plan. Glendale believes this transit link to be vitally important to ongoing success of our Downtown, which has built out over the past ten years, and continues to grow, according to the best principles of compact, smart, “transit-ready” mixed-use development. Providing residents, workers, and visitors to our Downtown and surrounding neighborhoods with mobility options to journey to-from our neighboring cities in the San Femando and San Gabriel Valleys is a necessary step towards alleviating traffic congestion on the 134 Freeway Corridor, which is heavily transited by drivers moving between the two valleys. Page 20f3Burbank-Glendale-Downtown Los Angeles Regional Rail Following upon the motion introduced by Board Member (and Glendale Councilmember) Ara Najarian at the March 24, 2016 Metro Board meeting (Item 39, 2016-228) we request that the Measure R2 expenditure plan includes funding to pursue potential rail connectivity with Metrolink, High Speed Rail and Burbank-Glendale-Los Angeles Rail Project and Local Bus Services. ‘We thank you for the opportunity to comment upon the proposed expenditure plan and look forward to working with the Metro Board and Staff to construct a robust, equitable and realistic plan for enhancing mobility in Glendale and across the County. Sincerely, eg Paula Devine, Mayor City of Glendale Cc: METRO Board Members Page 3 of 3