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HomeMy WebLinkAboutAgenda Report - June 2, 1999 Public CommentContinued June 2, 1999 c) The City Council, on motion of Council Member Hitchcock, Pennino second, unanimously directed the City Clerk to post for the following vacancies on the Greater Lodi Area Youth Commission: Greater Lodi Area Youth Commission Mena Khan Mike Rouzer Bobby Whitmire Term to expire August 30, 1999 Term to expire August 30, 1999 Term to expire August 30, 1999 d) City Clerk Reimche provided a status report regarding the inactive Personnel Board of Review. e) City Clerk Reimche informed the City Council that her office received a notice of application from Pacific Gas & Electric (PG&E) Company for a gas rate decrease and electric revenue increase: annual eamings assessment proceeding. This matter was for information only. 10. REGULAR CALENDAR None. 11. ORDINANCES None. 12. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS (Mayor Pro Tempore Mann was not feeling well, and left the meeting at approximately 10:25 p.m.) a) Wilbert Ruhl, 265 Almond Drive, Lodi, commented that once again the proposed ProStyle Sports Complex is on the agenda as a Closed Session matter. Mr. Ruhl stated that he feels nothing should be done until the public knows what is going on. He further stated that he feels the City is ignoring farmers in this matter and asked that it be put on hold until appropriate information is available to the public. b) Ken Knowles, representing Tokay Radio Control Modelers, 665 Sandpiper, Lodi, invited City Council Members and the community to its 30th Annual Tokay Open House, which will be held on June 5, 1999 from 9:00 a.m. until 3:00 p.m. c) Georgianna Reichelt, 3605 East Louise, Manteca, also spoke about the proposed ProStyle Sports Complex being on the Closed Session agenda and cautioned the City Council regarding partnering. Ms. Reichelt stated that if the City is going to enter into a partnership, it should be done in the open. Ms. Reichelt presented a copy of an article that appeared in The Record on May 16, 1999, which she indicated reflects some of her concerns. Secondly, Ms. Reichelt addressed the City Council regarding Senator Burton's Senate Constitutional Amendment proposal directed at modifying procedures for extensions of County Transportation Sales Tax Measures (SCA 3), highlighting various provisions of the proposal and voicing her concerns regarding the matter. This matter had been brought before the San Joaquin County Council of Govemments (COG) Board at their May 27th meeting. Council Member Pennino responded to Ms. Reichelt's comments advising that the COG Board voted to support SCA 3 at the May 27th meeting, with the stipulation that any extension of Measure K funds be brought to the voters of San Joaquin in some manner. 7 FILE No.941 06/03 '99 08:39 ID:COUNCIL 17IF GOVERNrENTS FAX: LJSJ kV San Joaquin County Council of Governments 6 Sourh El Dorado Suite 400 Stockton. California 95202 siccollgoo sau-joaquin.co.us (209) 468-3913 FAX (209) 468-1084 DATE: TO: AGENCY; FROM: NUMBER OF PAGES; 7 (not including this cover sheet) FOX Number: 33 3 co fro if any or these pages are sal legible or you do riot receive ad the pages, please call us at (209) 468-3913. CO (-4, ev-gt Ar GiA 4%4; 4L, Agerio&A—Vdt- \<- m00‘..) JUN -03-1999 08:27 PAGE 1 PMI FILE ia . +41 O6,O,:3 '99 OR : 4O I D : CCIIJNIC I L OF G❑'JER\IIENTS FAX: PAGE 2 Item 8A COG Board May, 1999 STAFF REPORT SUBJECT: Senator Burton's Senate Constitutional Amendment Directed At Modifying Procedures for Eactensions of County Transportation Sales Tax Measures RECOMMENDED ACTION: Motion to Recommend Support for the Legislative Proposal on Extensions of County Transportation Sales Tax Measures DISCUSSION: As this staff report is being written, Senator John Burton is amending SCA 3, a constitutional amendment to modify the existing .requirements for approval of half cent sales taxes for transportation purposes. The Senator has identified this as being the moat significant piece of legislation in securing infrastructure funding in California. Today, seventeen counties in California have approved half cent sales taxes to fund transportation projects. Sixteen of the seventeen have sunset dates. (Chilly Los Angeles remains in perpetuity, because it was passed prior to Legislatively adopted procedures for these measures.) The remaining 16 will have to secure a two thirds majority at the ballot box to continue in place, even though. all were passed with the need for a simple majority vote. These measures combined produce transportation revenue equal to that produced by the State of California in its State Transportation bnprovettent Program. Loss of this infrastructure funding will have a one billion impact on transportation funding in California_ This is why groups like the California Chambers of Commerce, the California Business Roundtable, and Cal Tax have indicated support for measures to continue the half cent sales taxes for transportation. The California State Supreme Court modified its previous rulings in 1993 and now has ruled that a 2/3 majority vote is required for these sales taxes to be extended. The two extension votes that have been taken so far have both receive majority votes of 53% in. Santa Clara, and 58% in Alameda, but neither were a 213 majority. Santa Clara managed -1- JUN-03-1999 @8:28 P. 02 F=ILE No.941 06/02 '99 08:40 I D : C OUNC: I L OF DOVER t1ENTS FAX: PAGE to pass a new half cent sales tax for transportation by calling it a general sales tax, and then having an advisory vote on the ballot that directed these funds be best used for transportation. purposes. This measure passed with 51% of the vote and was upheld as constitutional since a general purpose tax only requires a simple majority vote. This has been tried in three other counties which presently do not have transportation sales tuxes. In all three, the advisory transportation measure passed, but the general at sales tax did not. This method, (known as the A plus B method) has been assailed as too gimmicky, and not very transferrable to counties other than Sante. Clara, Senator Burton's proposal which should be placed in language in SCA 3 on May 18, uses the existing cantstitutionalprocess for a sales tax increase. it however requires a constitutirmal amendment since not all counties have sales taxes for transportation. The Proposal: ✓ 2/3 vote of the Legislature required / Majority vote of voters statewide in November of 2000 (these first two provisions are consistent with existing constitutional requirements.) J Local measures are renewed upon action by the Local Transportation Authority ✓ New measures (not extensions) require that the statewide ballot measure passes in that county. 1 A separate statute would be passed requiring some kind of expenditure plan be passed in each county well before the November, 2000 election The befit of the proposal is that it uses existing constitutional provisions to allow sales taxes for transportation purposes to be passed with a majority vote, while not impacting the requirements of .Proposition 13. There have been other suggestions for dealing with this issue. • Bring forward a constitutional amendment to reduce the .requirement for voter approval from. 213 to a simple majority, Such a blanket approach is unlikely to pass either the legislature or voters. • Flip-flop the requirement that general sales taxes only require a majority vote, while special tax measures that specify the expenditures require a 2/3 vote. "While intuitively this appears to make a good deal of sense (Cal Tax bas already written Senator` Burton that they would be supportive of such a measure) it has little voter support. Indications are that most voters are unaware that a general sales tax increase can be passed with a majority vote, they therefor react the same u the _2 - LIN -03-:1599 09:28 P.03 FILE No.941 Ob/O3 '99 08:41 ID:COUNCIL CF GOVERNMENTS FAX: PAGE 4 above proposal. • Raise the gasoline tax. While there is some argument that the gasoline tax acts like a user fee, polling has consistently indicated that the gasoline Out. is one of the most unpopular of all taxes. A half cent sales tax raise the equivalent of a 10 cent gasoline tax, but voters are far more willing to support the sales tax than they are a modest 4 int gas tax increase. The attached polling demonstrates that this is not an acceptable measure for voters. Also, the State Constitution precludes use ages tax for most non -road, and tout -highway expenditures thus leaving agencies lope ACE and SMART out of the funding programs. The attached polling of likely California voters was commissioned by various interest groups supportive of an increase in transportation financing. The results of the survey work resulted in the approaches above being set aside, and the only viable option remaining being the Burton proposal. This was supported by 59% of likely voters. COG STAFF RECOMMENDATION: COG staff .recommends support for the Burton proposal The COG Board has indicated ori Interest in scouring an extension of the existing half cent sales tax for Transportation. The existing 213 requirement presents a major challenge for passage. The Burton proposal leaves the requirements of Proposition 13 in place while adapting the requirements to the reality ofexisting transportation sales fax authorities. The proposal does not create new sales tax counties, unless voters in those amities approve the statewide ballot measure. Also, it would continue existing sales tax in counties such as San Joaquin, should the Losrai Transportation Authority approve. The COG Board through its approval of the Regional Transportation Plan has highlighted the significant shortfall in finding for transportation when Measure K expires in April of 2011. The Burton Proposal allows us to shore up that shortfall. FINANCIAL IMPACT: Support has no financial impact on San Joaquin County. Eventual passage of the Burton Proposal will require us to develop an expenditure plan for the extended sales tax. That will. require 4 months of COG staff bone, and staff time of anywhere from 1 week to 2 months for each of our local jurisdictions. Passage of the proposal and approval by the voters will result in extending the transportation sales tax for an additional twenty years. M: late,601 ay991ica3 .3. JUN -03-1999 08:29 P.04 FILE No . S41 06/03 '99 08:41 ID : COIJNC I L OF GDVER TENTS FAX: PAGE 5 ICA 3Stenos ConstitutionalAmendment -AMENDED hrtp://wwwie+ainfo.oagnvtpu6hilUeealab.•0050/son 3hi11_19990523 amended sen.html HILL NUMBER: SCA 3 AMENDED BILL TF}LT AMENDED IN SENATE MAY 25, 1999 AMENDED IN SENATE MAY 11, 1999 INTRODUCED BY Senators Burton and Xarnette (Principal coauthor: Assembly Member Dutra) (Coauthors: Senators Baca, Costa, Figueroa, Walley, Rainey, and Bluster) (Coauthor*: Assembly Members Calderon, Cardoza, Davis, Honda, Kuehl, Longville, Mazzoni, Migden, Romero, Thr1akaon, and Washington) FEBRUARY 8, 1999 Senate Constitutional Amendment No. 3--A reaolutiof to propose to the people of the state of California an amendment -ee--lade to the constitution of the State, by adding .article XIXA thereto, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST • SCA 3, as amended, Horton. --Le tet--#l'aftemeetet en Transportation funding: sates and use tax Sxieting laws vet forth in the California Constitution and in statutory provisions either impose or authorise the .imposition of state or local sales and nae taxes upon the gross receipts from the -sale within the taxing jurisdiction of, or the storage, user or other consuaption in this jurisdiction of, tangible personal property. This measure would impose, fora period of 20 years, an additional state sales and use tax rate of 0.5i for transportation purpassa. This measure would impose the additional tax only in a county that ham adopted a transportation expenditure plan, and in which this measure is approved by a majority of the voters of the county voting on the measure. This measure would, in an adopting county that has in affect a countywide transactions and use tax for transportation funding on the date this measure is approved, impose the additional tax only when the existing tax is repealed or becomes Inoperative. This measure would require the additional sales and use t:ax to be collected by the State Board of Equalisation and would require that revenues derived from that tax be deposited in the .boon! Transportetion infrastructure Account, which this measure would create in the State Transportation Fund. This Measure would require moneys in that account that were collected in each county, less adMinistrativn oasts and refunds, to be allocated to that county on a quarterly basis by the Controller. - _ ., r , a_ _-, .. Oettoti u ion weip Pee --a- 2-f a- 'if f !& FJ This me;.. , .. kat i -*-{ aasaa on p rpeee}-e Vote: 2/3. Appropriation: no. Fiscal committee: ice 1 of S 5/245.194 3:56 PN JUN -03-1999 08:30 P.05 FILE Ido .:41 06/03 '99 08:42 ID :Ci]UNC I L OF GOVERNMENTS FAX: PAGE 6 ACA 3 gonna Con:titutinnal Amendment . AMENDED ht#p:Hwww.ieginfo_n.gpv/pub+hilVxa isb...0054hop 3 _bi11_19990325, aaxaded_xen bim yea . State -mandated local program: no. That WH3RW, Adequate transportation infrastructure ens' services are critical to sustaining California's prosperity es well aa the neceaaary daily activities of all Californians; and WHEREAS, California's current transportation .infrastructure and levels of transportation services and funding are inadequate to meet California's present needs, much less the increased needs being created by Ca1if©rnia'a continued growth; and WHEREAS, California's inadequate transportation system has, in many instances, become a burden upon individual citireen$, businesses, and public entities; and WHEREAS, Eighteen counties in California representing over 80 percent of the population have pied local countywide trariaportetion saetea tax meaararea by -majority vote for critically needed highway and public transit needs representing about one-half of all new capital .invested in new facilities over the last 10 years in our state; and WHEREAS, The record clearly demonstrates that these funds have been administered efficiently and effectively to build, maintain, and operate nigh priority .focal improvement projects; and WHHREAs, in order to ensure that California will be able to meet its current and future transportation needs and thereby preserve and enhance the prosperity and dai.Iy activities of all Californians, it is necessary to establish an additional .funding source that is dedicated exclusively to the funding of CalifOrnie's local transportation requirements, is ddwiniatered by local government representatives, and is directly responsive to each county's local transportation needs; now, therefore, be it RESOLVED BY THE SENATE, TEE ASSEMBLY CONCURRING, That the legislature of the st*te of califerni.a At its 1999-2000 Regular session commencing on the seventh day of December 1998, two-thirds of the membership of each house concurring, hereby proposes to the people of the state of California that the capacitation of the state be amended by adding Article XIXR thereto, to Lead: ARTICZE XIXA TRANSPORTATION IMPROVEMENT AND MAINTENANCE ACT 3ZCTION I. (a) Notwithstanding any other- provision of this Constitution, far the exclusive purpose of funding local and regional transportation planning, research, design, construction, operation, maiintenance, rehabilitation, and environmental mitigation directly related to transportation project impacts, the following sales and use taxes are hereby imposed under those conditions and at the time and in the scanner set forth in subdiviaton (b): (1) ger the privilege of selling tangible personal property at retail, a sales taw upon all retailers et the rate of one-half of 1 percent of the gross receipts of any retainer from the male of all tangible personal property sold at retail in this state. (2) An exciae tax upon the atorage, use, or other consumption in this state of tangible personal property purchased from any retailer for storage, u.yes, or other consumption in this state at the rate of one-half of l percent of the sales price of the property. (b) (1) The taxes described in subdivision (a) may be imposed only within a county in which a plan has been adopted for the expenditure of tax revenues to fund transportation purposes. if the voters in a 2 of SUN -03-1999 OE:30 5269 3:56 P1, P.06 FILE No .'941 0670C' '99 08:43 I D: COUNC I L OF GOVERNMENTS FOX: PAGE 7 SCA A 3 Sonata Cc neitutiuna3 Amadmeet . AMENDED http;l/www,laglnlu.us.aoxdpuiubiWaralsh...O(130facai_hill_1999Ui2damor ded eon.htm county have previously approved a countywide transactions and use tax of pre -half of 1 percent for transportation funding, the policy card of the agency responsible for administering the previously approved transactions and use tax may adopt the expenditure plan. It a countywide transactions and use tax for transportation funding that has received voter approval is not in effect, Chen the expenditure plan meet be approved by both of the following; (A) The county board of supervisors. (B) The governing bodies of cities in the county representing a majority of the population of the incorporated areas of the county, unless there are no incorporated areas in the county. once adopted, a county transportation expenditure plan may be amended only by a two --thirds vote of the adopting authority or by a majority vote by the voters in that county voting on the amendeent. (2) Notwithstanding Section 8.5 of Article XV, the taxes described in subdivision (a) ars hereby imposed, as provided in paragraph (3), In a county only if the measure adding this article was approved by a majority vote of the voters of that county voting on the measure, except that in a County in which a countywide transactions and use tax for transportation funding is in effect on the date the measure adding this article was approved, the taxes described in aubdivielon (a) are not imposed until the current countywide transactions and use tax for transportation funding is repealed or becomes inoperatiye. For purposes of this article, a countywide transactions and use tax for transportation funding does rot i.nc.Igde any portion o 4 local sales tax that is imposed pursuant to the Bradley -Bur Uniform Local Sales and Ilse Tax Law (Part 1.5 (commencing with Sec ion 7200) of Division 2 of the Revenue and Taxation Code), or its s caviar. d3) Upon a county's compliance with the conditions se forth in paragraphs (1) and (2), the taxes described in subdivis n (a) are imposed in that county for s period of 20 years common ng with the first calendar quarter that commencea more than 90 de a after the effective date of this section or the date of county compliance .it that data is later. Except es provided in paragraph (2), the taxes described .in subdivision (a) shall be so .imposed in at county in addition to any other state or local sales or transactions and use taxes imposed in that county pursuant to .law. (4) The taxes described in subdivision (a) shall be aigktt.in.t, tared in the same manner as the taxes imposed pursuant to the Sales and Use Tax Law (Part I (cotta'rtaencing with section 6001) of Division 2 of the Revenue and Taxation Code), or its successor, and shall be subject to any exemption from tax set forth in that law. (c) The taxes deacribed in subdivision (a) shall be collected and administered by the State Board of Equalisation, or its successor agency. The revenues derived from that tax shall be despoeited in the Local. Transportation Infrastructure Account, which is hereby established in the State Transportat.ion Fund. The tbntro22er shalt allocate the moneys in that account no less frequently than on a quarterly basis as .follows; (1) To the State Board of Equalisation and to the Controller for their respective costs cif co1lectlon and a dMin.istrat.ion, which may not exceed 1 percent of the moneys deposited in the account. (2) For the payment of refunds of amounts of tax improperly collected pursuant to this section. (9) The balance among the countiea, by allocating to each county all of the remaining amount of those tax revenues that were collected with respect to a sale, use, storage, or other consumption of tangible pe.raonal property that occurred in that county_ (d) All revenues received by a county pursuant to this section shall be expended exclusively for Iocal and regional tranaportation 3o15 3116199316M JUN -03-1999 08 31 P.07 FILE No.941 06/D3 '99 08:43 ID:COUNCIL OF GOVERNMENTS FAX PAGE 8 3 Senate Constitutional Amendment - AMENDED ltuphvemleginhcs.gevtpultutillisenisb,..00.50ists,,3„fik19990525_smendud_nm.html planniwe rosearchr design, construction, operation, maintenance, rehabilitation, and environmental mitigation directly related to transportation project iinpactS, iiitete-e4-4101-14aenke-e6-4.-es 3:22 9 n eerrntng iaihip et Get-i-Sereeke-bee ementleal-awae- First Vhst-eeetten neistiessi-tiu-P.-al-M-I-ltio-lrestmis- DSC . it.a ) xatimix4shonstwea-nit-eity-etettrest--previistnis bete-tskee-44-‘-elsitewille-eai . tee-laskeld-al -f-tme*-ttes-eeasepeeikeeiet-peepeer (Is) For -e4-4eke-eeeeal-en+ . , ziefieeet-iey e4ivq--e4-1-eelebtehteate j ,...lereeetokee-t-telpsee-with en-enik--prerat tmenf. 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