Jeff Wood Com Membr Neeser wl Tote Rogers Council Member Stere Cet Comat Membr S r ae F Receive His May 11, 2016 MAY 16 Phillip A. Washington, CEO Office of the CEO METRO One Gateway Plaza Mail Stop 99-25-1 Los Angeles, CA 90012-2952 Re: Green Complete Streets Program — Measure R2 Dear Mr. Washington: This letter is in response to your April 14, 2016 letter requesting additional funding for the Green Streets Program as part of the potential sales tax ballot measure of 2016. METRO should play an important role in the solution of providing permanent funding for much needed improvements to the pollution generated by the region’s network of streets and highways. The City of Lakewood appreciates your commitment to recommend an amendment to the draft Expenditure Plan that would allow the Local Return allocation to be used by the cities and the County for funding “Green Streets” projects. However, additional money must be added to the Local Return to fund green streets. We are offering to work with METRO as you consider additional funding sources such that we can reach the requested 2% allocation for stormwater treatment through the Green Streets component of the Local Return for this critical environmental program, Amended Expenditure Plan ‘We are requesting a copy of the amended language in the draft Expenditure Plan that would allow the cities and the County to use the Local Return Program for local Green Streets projects. We will need to discuss the amendment with our City Couneil since this is a key component of our decision on whether to support the tax measure. We are happy to work with you on language revisions prior to the METRO Board taking a final action on the ballot measure. ‘The language needs to be clear and concise, since there should be no debate when the expenditures rules are drafted by METRO staff. Increase the Local Return Lakewood and many of the region’s cities are requesting an increase in the Local Return from the proposed 16%. ‘The funding formula also needs to be restructured. The Local Return Program is based on a “per capita” formula from the 1980°s which has created inequities and regional transfers of revenue over the past 35 years. We see no good reason to continue the same funding formula for the next 40 years. Lakewood 5050 Clark, wen Lakewowrd, CA 90712 + ($62) 866-9771» Fay 1562) NO6-0505 © www.takeseoodeit.org + Email: serviced sewondeitore: 5 , é f ee | 7 1Lakewood receives approximately $3.5 million annually from METRO based on the current “per capita” distribution formula. The current proposal is far below the Proposition A retum of 25% and the Proposition C return of 20%. It is only one percentage point above the Measure R Local Return of 15%, We believe it is appropriate for METRO to increase the Local Return Program to at least 18% in order to play an effective role in funding water clean-up programs. Cities and counties are dealing with the precipitous drop in State Gas Tax revenues. Lakewood’s gas tax revenues have fallen from a high of $2.3 million in 2012 to $1.7 million this 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. Lakewood estimates that over $9 million annually is needed to maintain the City’s existing streets and highways in our 9.5 square mile community. The proposed 16% Local Return 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. um Allocation for Small Cities Measure R2 should provide a minimum equitable return of $1 million per year to the cities, regardless of their population. Some of the smallest cities in Los Angeles County also generate significant sales taxes to the program — including cities like Commerce, Santa Fe Springs and Signal Hill. This $1 million Local Return Program base will assist the small, disadvantaged communities, as well. Most of ‘our communities have major arterial highways, which serve as regional transit and goods movement corridors and as congestion relief to overcrowded freeways. This minimum amount will also assist the smaller cities in implementing the water quality requirements for their streets and highways. We stand ready to work with METRO on these critical issues. Again, we appreciate your support of amending the expenditure plan and look forward to your support in increasing the Local Retum or Green Streets Program so that 2% of the bond measure can be used to support the new water quality mandates. on Pi Mayor cc: Lakewood City Council METRO Board Member Ms. Kristine Guerrero, League of California Cities Mr. Sam Olivito, CCCA