CITY MANAGER/ADMINISTRATIVE SERVICES DEPARTMENTS

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1 February 14, 2019 TO: FROM: Honorable Mayor and City Council Edward C. Starr, City Manager SUBJECT: CITY MANAGER S WEEKLY REPORT: February 8-14, 2019 CITY MANAGER/ADMINISTRATIVE SERVICES DEPARTMENTS The Los Angeles County Metropolitan Transportation Authority (Metro) is considering implementation of a congestion pricing strategy to combat the region s growing traffic congestion. In its broadest form, the plan calls for the conversion of carpool lanes to toll lanes, taxing drivers based on the number of vehicle miles traveled, and/or charging a fee to enter heavily traversed neighborhoods and business districts. Metro estimates the tolls would raise billions in revenue. At its February Board meeting, Metro directors will be asked to consider launching a twoyear study to determine how congestion pricing would work for the region. According to Metro estimates, a per-mile tax on driving could raise $102 billion over a decade, while a fee to enter downtown Los Angeles could raise an estimated $12 billion over the same period. Funds derived from a congestion pricing strategy would be directed to expanding the region s transit network, promoting the use of public transit and providing a faster commute for drivers willing to pay the tolls. Metro is focusing on completing 28 transit and highway projects before the 2028 Summer Olympic Games a list dubbed 28 by 28. Projects include the Wilshire subway extension to West Los Angeles; light-rail lines through South Los Angeles, Van Nuys, and Artesia; and a Sepulveda Pass transit line and several interchange improvements. Congestion pricing is only one of many strategies the Metro Board is being asked to consider. Metro officials argue that the billions of dollars that congestion pricing would generate could pay for an investment in transit so major that buses could run every few minutes on many street routes. Metro could also subsidize transit fares, making public transit free or at minimal cost, thereby removing a financial burden on low-income residents to travel for jobs, school, medical appointments, and entertainment and cultural opportunities.

2 Not every member of the Metro Board is convinced that congestion pricing is necessary. In November 2016, Los Angeles County voters approved Measure M, increasing the sales tax by a half-cent, and continuing the half-cent sales tax under Measure R the Measures are projected to raise $120 billion over 40 years. Funds from both measures were promoted as long-term solutions for traffic management. In addition, last November, voters statewide approved a 12 cents per gallon fuel tax (Senate Bill 1) for transportation and public transit improvements throughout California SB 1 is projected to raise $52 billion over the next decade alone. Federal funds are also available as a match to local infrastructure improvement efforts. Funds derived from Measure M, Measure R, and SB 1 are already being utilized to construct a great number of transportation and transit projects in the region and throughout the state. For example, after approval of Measure M, Metro awarded $1.2 billion for the Gold Line Phase 2B Project from Glendora to Claremont, and the California State Transportation Administration (CalSTA) awarded approximately $280 million ($125 million from SB 1, and the balance from cap-and-trade auctions) for Phase 2B from Glendora to Montclair. However, an estimated $290 million in additional funds are now necessary to complete the project from Pomona to Montclair. A modest form of congestion pricing is already in place on various freeways, including I-110 and I-10, where drivers who are alone in their cars can enter Express Lanes and pay by the mile to use the lanes. Based on the week day, time of day, and freeway congestion volume, Express Lanes tolls can rise to more than $20 for a one-way trip. A similar congestion pricing plan is already in development for San Bernardino County. The California Department of Transportation (Caltrans), in cooperation with the San Bernardino County Transportation Authority (SBCTA), the council of governments and transportation planning agency for San Bernardino County, proposes to add Express Lanes through the entire length of the 33-mile stretch of I-10 from the Los Angeles-San Bernardino County line to Ford Street in Redlands. The project includes transition areas extending from approximately 0.4 miles west of White Avenue in Pomona to Live Oak Canyon Road in Yucaipa (the project limits). The existing HOV lanes will be converted to Express Lanes, for a total of two Express Lanes, each direction. Last year, the San Bernardino County Transportation Authority (SBCTA) awarded the $930,000 million project, set to begin construction later this year. A full description of the project, including questions and answers regarding the I-10 Freeway Express Lane Project, is available on the City s Homepage. According to Metro, congestion-pricing-type strategies relieved gridlock in every city where they have been tried, including Singapore, Stockholm and London; however, the idea has failed to catch on in the United States despite repeated efforts to move congestion pricing forward. In New York City, congestion pricing has returned to the political front so many times that the New York Times dubbed it the Lazarus of congestion plans. 2

3 Will a congestion-pricing strategy find success in the Los Angeles region? Early proposals to build the existing Express Lanes were surrounded with controversy and sparked outrage among commuters; and SBCTA faced similar obstacles throughout its review to build Express Lanes on the I-10 Freeway. The idea of paying tolls to drive is generally unpopular among commuters. According to a UCLA study, in 2016 more than 71 percent of voters supported Measure M, but just 38 percent of those supporters favored freeway tolls. Voters are, however, willing to spend billions to expand public transit, even though the vast majority don t ride it themselves. Last year, in fact, ridership on Metro s buses and trains fell to 383 million trips, a 3.4 percent decrease from 2017 and a 19.7 percent drop over 5 years. Nonetheless, without the addition of more freeways to handle the substantial increases in vehicle miles traveled, many transportation agencies are concluding that the only remaining alternative is to manage traffic flow through a pricing system, coupled with frequent, reliable public transportation service. This latter point is an important argument for extension of the Gold Line to the Montclair Transcenter and beyond to Ontario International Airport. Other than Metrolink commuter rail service that takes riders between San Bernardino and Los Angeles, and local serving bus systems, San Bernardino County offers no public transit to Pasadena and the foothill cities of the San Gabriel Valley. Public transit, to be successful and useful, must achieve connectivity with other transit services; must be accessible and convenient; and integrate effectively with the larger mobility network that includes ride hailing, smaller transport services, and pedestrian and bicycle pathways. California Governor Gavin Newsom said on Tuesday the state will dramatically scale back a planned $77.3 billion high-speed rail project that has faced cost hikes, delays, and management concerns, but will finish a smaller section of the line. Let s be real. The current project, as planned, would cost too much and respectfully take too long. There have been too little oversight and not enough transparency, Newsom said in his first State of the State Address to lawmakers on Tuesday. Newsom said the state will complete a 119-mile high-speed rail link between Merced and Bakersfield in the state s Central Valley. In March 2018, the state forecast the costs had jumped by $13 billion to $77 billion and warned that the costs could be as much as $98.1 billion. Newsom said he would not give up entirely on the effort and will continue to seek additional funding. California planned to build a 520-mile system in the first phase that would allow trains to travel at speeds of up to 220 miles per hour in the traffic-choked state from Los Angeles to San Francisco and begin full operations by

4 A state audit issued in November said California s High Speed Rail Authority s flawed decision making and poor contract management have contributed to billions in cost overruns and delays. The Obama administration awarded the state a total of $3.5 billion in 2010 and California voters in 2008 approved nearly $10 billion in bond proceeds. The U.S. Transportation Department s inspector general s office noted in August 2018 that the state had only identified $30.7 billion in funding, or less than half the project s needs. Newsom said the state will finish environmental reviews from San Francisco to Los Angeles, connect the revitalized Central Valley to other parts of the state, and continue to push for more federal funding and private dollars. But let s just get something done. The governor also said he will name his economic development director, Lenny Mendonca, to chair the High-Speed Rail Authority, and vowed new transparency and to hold contractors and consultants accountable to explain how tax dollars are spent. COMMUNITY DEVELOPMENT/ECONOMIC DEVELOPMENT On Monday evening, the Planning Commission approved the Precise Plan of Design (PPD) and Conditional Use Permit (CUP) for construction of a Lazy Dog Restaurant at the former Goodyear Auto Center at Montclair Place. The restaurant will total 8,425 sq. ft. and will include a 1,500 sq. ft. dining patio. Its design is attractive and incorporates many strong and appealing design features unique to Lazy Dog Restaurants. The Planning Commission approved the CUP request for a Type 47 ABC license that allows for the sale of beer, wine, and distilled spirits in conjunction with a bona fide restaurant, and also approved the CUP request for outdoor dining on the patio. The patio will be located on the south elevation of the building and its construction will include a solid metal roof, allowing for outdoor dining in inclement weather or hot summer days. Adding to the charm of the patio is a large fire pit encircled with Adirondack-style seating. Patio dining is open to dogs on leashes, and there is even a special menu designed specifically for these pets. The restaurant will accommodate 176 patrons, the bar will seat 94, and the patio will seat 56. Lazy Dog Restaurant has submitted for building plan check and hopes to begin construction by April The Planning Commission expressed great support and enthusiasm for the proposed restaurant and provided a warm welcome to the Lazy Dog Restaurant representatives. 4

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6 The online real estate publication, CONNECT, wrote that demand for apartment units will continue to be robust among investors and renters in According to Yardi Matrix s U.S. Multifamily Outlook, Winter 2019, the coming year should be another good one for the industry. Demand is expected to stay healthy, as long as job growth remains positive, and young adults and retirees choose apartments, the report noted. The Yardi analysts also forecast the following. The coming year should be marked with moderate rent increases from 2.5 percent to 3 percent nationally. The south and west regions, experiencing strong in-migration and job growth, will lead the way. 6

7 Approximately 300,000 units will come online in 2019, marking the fourth straight year at that particular supply level. Investors still like multifamily, due to its perception as a safer asset. The Yardi report pointed out that, as the economic cycle continues aging, a larger portion of commercial real estate dollars are headed toward apartments and industrial products. The Yardi report, however, is not all good news. The Yardi analysts warned that, while capital for the sector remains firm, a sense of nervousness is developing. Specifically, property yields have likely bottomed out, while concerns about increasing interest rates and weaker economic growth led to a slowdown in commercial mortgage originations. Additionally, while lenders are competing on pricing, they are also discriminating among property types to make their portfolios as recession-proof as possible. From an economic standpoint, the Yardi report concludes that 2019 will mean slower growth, even with an overall healthy economy. Trade tensions and a continuing flattening of the yield curve are cause for concern among investors. HUMAN SERVICES DEPARTMENT Yesterday the Senior Center hosted a Valentine s Day dance for over 150 senior citizens. Guests enjoyed refreshments and music by local DJ, Radio Clash. Thank you, Council Member Trisha Martinez, for joining the party! Photos are shared on Page 11. The Montclair After-School Program (MAP) will host its 1st annual Masters of Montclair Art Show and 2nd Trimester Awards on Thursday, February 28 at 6:30 p.m. in the Senior Center. Themed Impressed on Pop, the show will include an unveiling of each student s masterpiece. For the past month, students from each of MAP s 12 school sites have been exploring artistic methods from world renowned artists, along with their masterpieces and techniques, with styles of art ranging from the Impressionist period to the Pop Art movement. All are invited to come be Impressed on Pop with the MAP Masters of Art. A flyer is shared on Page 10. POLICE DEPARTMENT Last Thursday evening was Law Enforcement Appreciation Night at Ontario Elks Lodge. Police Officer Josh Garabedian was honored as Montclair Police Department's 2018 Officer of the Year. Joining Josh to celebrate in his honor were his parents, Richard and Carrie; Captain Jason Reed; Lieutenants Brian Ventura, 7

8 Brandon Kumanski, and Jim Michel; Sergeant John Minook and his wife, Tina; and Officers Eric Rivera, Miguel Huerta, Anthony del Rio, and James Blum. Pictured from left: Officer Miguel Huerta, Officer Anthony del Rio, Sergeant Jim Michel, Captain Jason Reed, Officer of the Year Josh Garabedian, Lieutenant Brian Ventura, Lieutenant Brandon Kumanski, Sergeant John Minook, and Officer James Blum 8

9 FEBRUARY Valentine's Day 18 Presidents' Day City Offices Closed Battle of the Badges Blood Drive Montclair Senior Center Real Estate Committee Meeting Cancelled Code Enforcement/Public Safety Committee Meeting Cancelled City Council Meeting Council Chambers Safety Committee Meeting South Conference Room Public Works Committee Meeting City Hall Conference Room Adjourned City Council Meeting Midyear Budget Review, Council Chambers Planning Commission Meeting Council Chambers City Manager's Staff Meeting City Hall Conference Room 2 p.m. - 8 p.m. 7:00 p.m. 10:30 a.m. 4:00 p.m. 6:00 p.m. 7:00 p.m. 9:00 a.m. 9

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