PREPARED BY: MATT RODRIGUEZ DATE OF MEETING: 05/04/2026
SUBJECT:
TITLE
CONSIDER AUTHORIZATION OF A LETTER OF SUPPORT FOR SB 1408 LEGISLATION AUTHORED BY STATE SENATOR ARREGUIN (D-7TH) TO SUPPORT CONTRA COSTA TRANSPORTATION AUTHORITY’S DESIRE TO IMPOSE OR EXTEND A DISTRICT TAX BY ORDINANCE OF UP TO 1%, EVEN IF IT EXCEEDS THE 2% CAP WHEN COMBINED WITH OTHER DISTRICT TAXES IMPOSED BY LOCAL AGENCIES
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Authorize by Minute Order
Body
COMPLIANCE STATEMENTS
FY 2025-27 Council Priority Workplan Compliance Statement
Annual City Council Assignments are not contained in the FY 2025-27 Council Priority Workplan, effective April 7, 2025; but are operationally required per SPMC requirements.
CEQA Compliance Statement
This proposed action is not a project as defined by CEQA.
BACKGROUND
The Contra Costa Transit Authority (CCTA) is a public agency formed by Contra Costa County voters in 1988 to manage the county’s transportation sales tax program and oversee countywide transportation planning efforts. CCTA manages a multibillion-dollar suite of projects and programs and is responsible for planning, funding, and delivering transportation infrastructure projects. Some major projects, primarily on state highways, are being developed directly by CCTA. Others are administered by cities, the county, or transit districts with funds provided by CCTA.
Under the Local Transportation Authority and Improvement Act, CCTA can impose a tax up to 1% to fund local transportation improvements. In 1988, the CCTA used this authority to impose a 0.5% district tax, known as Measure C, which voters renewed as Measure J in 2004. However, Measure J is scheduled to expire on March 31, 2034. While CCTA can extend the tax at the current rate within the cap, any increase in the rate requires a statutory exemption.
Currently, Vice Mayor Rita Xavier, is a two-year seating Board member on the CCTA Board of Directors serving the current term: January 24, 2025 - January 31, 2027.
Proposed Law
Senate Bill 1408 allows the Contra Costa County Transportation Authority to impose or extend a district tax by ordinance of up to 1%, even if it exceeds the 2% cap when combined with other district taxes imposed by local agencies. CCTA must adopt an ordinance proposing the tax, submit it to the electorate for approval, and have it approved by voters according to the appropriate Constitutional voter approval threshold. Other than the 2% cap, the tax must otherwise conform to district tax law. The bill repeals the authority for the County of Contra Costa to impose a tax in excess of the cap on January 1, 2045. (See attached SB 1408 bill as last amended on April 14, 2026)
Bill Status
SB 1408 was introduced on February 20, 2026 by State Senator Jesse Arreguin (D-7th).
On April 7, 2026, the Senate Standing Committee on Transportation passed the bill and referred to it to the Senate Committee on Revenue and Taxation on April 8, 2026. At time of agenda preparation, SB 1408 is set for a hearing on April 22, 2026.
Letter of Support
A letter of support for SB 1408 is warranted because the proposed legislation directly affects Contra Costa County’s ability to sustain and modernize its transportation infrastructure beyond the expiration of Measure J in 2034. CCTA is responsible for planning, funding, and delivering major transportation projects that benefit every community in the county, including improvements to highways, local streets, transit systems, and mobility programs.
Without statutory authority to exceed the existing 2% district tax cap, CCTA may be unable to secure the revenue needed to maintain current service levels or advance future projects that address congestion, safety, and regional mobility needs.
SB 1408 provides a pathway-subject to voter approval-to preserve and potentially enhance long-term transportation funding, ensuring that critical infrastructure investments can continue without interruption. A letter of support allows the City to formally communicate the importance of this legislative authority for maintaining reliable, efficient, and well-planned transportation systems that serve residents, businesses, and the broader regional economy.
City Manager Recommendation
The City Manager is seeking City Council authorization, via minute order, to transmit the attached Letter of Support, under the Mayor’s signature, as directed by majority vote of the City Council to the bill’s author, Senator Jesse Arreguin (D-7th).
FISCAL IMPACT
None associated with this action.
ATTACHMENT:
Att A - Proposed SB 1408 Legislation (Arreguin; D-7th); last amended 04/14/26
Att B - Letter of Support from San Pablo Mayor Pabon-Alvarado for SB 1408 (Arreguin; D-7th)