Minutes 03/26/2013 - Laserfiche WebLink

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March 26, 2013 1. Pat Simons, 801 Mimosa Road, spoke in opposition to this item. Motion by Mr. Edmonds, and seconded by Mr. Meeks, to adopt the following ordinance, and was adopted by the following vote: "ORDINANCE TO APPROPRIATE $575,910 IN ADDITIONAL REVENUE AND $1,421,512 IN ADDITIONAL EXPENDITURES IN THE FY 2012-13 GENERAL FUND AND TO APPROPRIATE ADDITIONAL EXPENDITURES OF $700,000 IN THE FY 2012-13 HEALTH INSURANCE FUND." Ayes: Cherry, Edmonds, Meeks, Moody, Psimas, Randall, Wright Nays: None 13 - 140 -Adoption of an ordinance to appropriate $50,000 in the FY 2012-13 General Fund for the purpose of reimbursing the Economic Development Authority of the City of Portsmouth, Virginia for payment of legal fees incurred in opposing the imposition of tolls on the Downtown and Midtown Tunnels and the Martin Luther King Connector. Vision Principles: Efficient, Responsive Government and Change and New Directions. Background: • In December 2011, Governor McDonnell signed a comprehensive agreement valued at $2.1 billion with Elizabeth River Crossing OpCo (ERGO) to finance, design, build, maintain and operate the Downtown and Midtown Tunnels and the MLK extension. • On February 28, 2012, City Council adopted a resolution formally stating its opposition to tolls as a funding means for the projects, urged the Portsmouth Delegation to General Assembly to oppose Governor's budget until tolls were removed from construction financing, and urged citizens to voice their opposition to Governor and representatives in the General Assembly. • On July 12, 2012, residents and business operators from Portsmouth and other Hampton Roads cities filed suit in Portsmouth Circuit Court against the Virginia Department of Transportation (VDOT) and ERC on behalf of the plaintiffs, the Citizens Against Unfair Tolls. • On February 12, 2013, City Council, by resolution, restated its opposition to the proposed tolls and declared its support for the lawsuit. Discussion: • The imposition of tolls creates an undue burden on Portsmouth residents, costing an average household more than $1,000 annually for routine trips in the region. Toll costs are even greater for Portsmouth residents, visitors and tourists who have not purchased an EZPass transponder. Furthermore, toll rates are scheduled to increase over the life of the 58-year contract by an indexed escalation factor. • Despite the massive investment in the Midtown Tunnel, there will be no appreciable improvement in travel time for the eastbound morning commute because of unimproved level of service on Hampton Boulevard. • While some service level improvement is achieved for Portsmouth streets with the MLK Connector, there is a corresponding loss of business in the Mid-Town business district because of limited access. • The reputation of the region as ahighly-congested metropolitan area is only nominally improved with these construction projects, and will be instead damaged by the cost and frustration to visitors of toll charges. • With the appropriation of $50,000 to efforts opposing the tolls, the City increases the likelihood that many years and dollars of unnecessary expense by Portsmouth citizens will be averted. Financial Impact: • Appropriation of $50,000 in the FY14 General Fund Budget from unrestricted Fund Balance. Recommended Action: • Adoption of resolution. Vision Principle: Efficient, Responsive Government and Change and New Directions.