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Home My WebLink About12 - City's Support for Proposition 50CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 1a October 22, 2002 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Managers Office Dave Kiff, Assistant City Manager 949/644 -3002 or dkiff@city.newport- beach.ca.us SUBJECT: City's Support for Proposition 50 ISSUE: Should the City Council take a formal position on Proposition 50 (the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002)? RECOMMENDATION: Authorize the Mayor to issue a letter to the proponents of Proposition 50 stating the City of Newport Beach's formal support of Proposition 50. DISCUSSION: Background: The City Council of the City of Newport Beach has recently supported various statewide voter propositions where the propositions provide funding for parks and water quality. When the voters of California passed Propositions 12 and 13 in March 2000, the City successfully applied for and received the following funding: $ 225,000 for Buck Gully Habitat Restoration; $ 479,000 for improvements to Corona del Mar State Beach facilities; and $ 500,000 for water quality capital improvements city -wide (via the Clean Beaches Initiative) Proposition 40 (March 2002) authorized the expenditure of $2.6 billion for various water quality and open space projects. The City anticipates seeking Proposition 40 funding for projects like the below - listed projects once Proposition 40's funds are made available by state agencies for distribution. Additional storm drain inlet guards and catch basin filters (under the Clean Beaches Initiative again); City's Support of Proposition 50 October 22, 2002 Page 2 The Marine Studies Center at Shellmaker Island; and Habitat and Access Improvements at Upper Newport Bay The City Council adopted resolutions in support of each proposition -- 12, 13, and 40. believe that the City's support of these measures made the City's competitive grant applications for projects funded by the propositions slightly more competitive than had the City not taken an advocacy position. Proposition 50. The legislature has placed another water bond measure on the November 5, 2002 General Election ballot. This measure would authorize the issuance of $3.44 billion in general obligation bonds (bonds paid off by the State General Fund and backed by the resources of the State of California) for water quality purposes. What Proposition 50 Does. Proposition 50 is titled the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002. It authorizes $3,440,000,000 for: . Specified CALFED Bay -Delta Program projects including urban and agricultural water use efficiency projects; . Grants and loans to reduce Colorado River water use; . Purchasing, protecting and restoring coastal wetlands near urban areas; . Competitive grants for water management and quality improvement projects; . Development of river parkways; . Improved security for state, local and regional water systems; and . Grants for desalination and drinking water disinfection. The non - partisan Office of the Legislative Analyst estimates the following impact of the bond on State Government and local governments: STATE. Proposition 50 will cost up to $6.9 billion over 30 years to pay off both the principal ($3.44 billion) and interest ($3.46 billion) costs on the bonds. Payments of about $230 million per year. LOCAL. A reduction in local property tax revenues, ranging from a few million dollars to roughly $10 million annually, about one -half of which would be offset by state payments to schools to make up their revenue loss and unknown costs to state and local governments to operate or maintain properties or projects purchased or developed with these bond funds. The following chart (provided in the Voter Information Guide produced by the California Secretary of State) shows how the measure authorizes the expenditure of $3.44 billion: Z City's Support of Proposition 50 October 22, 2002 Page 3 Distribution of Funds within Proposition 50 Coastal Protection $950 • Wetlands acquisition, protection, and restoration 750 • Watershed protection 200 CALFED Bay -Delta Program $825 • Water use efficiency and conservation 180 • Water supply reliability 180 • Ecosystem restoration 180 • Watershed protection 90 • Water conveyance 75 • Delta levee restoration 70 • Water storage planning and studies 50 Integrated Regional Water Management $640 • Various water supply, pollution reduction, water treatment, flood management, and wetlands restoration projects 500 • Land and water acquisitions to improve /protect water quality, water supply reliability, and fish and wildlife habitat 140 safe Drinking Water $435 • Small community drinking water system upgrades, contaminant removal and treatment, water quality monitoring, drinking water source protection Clean Water and Water Quality $370 • Water pollution prevention, water recycling, water quality improvements 100 • River parkway projects 100 • Coastal nonpoint source pollution control 100 • Lake Tahoe water quality improvements 40 • Land and water acquisitions to protect water quality in the Sierra Nevada-Cascade Mountain Region 30 Desalination and Water Treatment Project $100 • Desalination projects, treatment/removal of specified contaminants, drinking water disinfecting projects 100 Colorado River Management $70 • Ecosystem restoration and Canal Lining 70 Water Security $50 • Protection of drinking water systems from terrorist attacks... 50 _, City's Support of Proposition 50 October 22, 2002 Page 4 I believe that the City can successfully compete for grant funding under the categories of Coastal Protection ($950 million), Clean Water and Water Quality ($370 million), and Water Security ($50 million). For More Information: Readers should look at the following Web sites for more information about Proposition 50: www.ss.ca.gov (California Secretary of State) www.prop50yes.com (supporters) www.peoplesadvocate.com (opponents) Committee Action: On Thursday, October 10, 2002, the Coastal /Bay Water Quality Citizens' Advisory Committee recommended unanimously that the City Council support Proposition 50. Environmental Review: The City Council's approval of this Agenda Item does not require environmental review. Construction of most projects funded by the City's use of Proposition 50 bond moneys will require environmental review. Public Notice: This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Submitted by: C—_ 1 Dav Kiff, Assistant City Manager Attachments: Proposed letter to Proposition 50 Proponents City's Support of Proposition 50 October 22, 2002 Page 5 October 23, 2002 Yes on 50 926 J Street, Suite 907 Sacramento, California 95814 Via Facsimile: 916- 558 -1518 Dear Friends: The City of Newport Beach hereby expresses its formal support for Proposition 50 (the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002). We believe that the voters' passage of Proposition 50 on November 5, 2002 will allow cities like Newport Beach to use Proposition 50's funds to continue our aggressive efforts to improve recreational water quality and to project our drinking water supplies. Please use the City's support of this measure in any manner in which you see fit in advance of Election Day. Sincerely, TOD W. RIDGEWAY Mayor of Newport Beach r