HomeMy WebLinkAbout05-City Manager
ORIGINAL
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Charles McNeely, City Manager
Subject: Resolution of the Mayor and
Common Council authorizing the City
Attorney to cooperate with the League of
California Cities, other cities and counties in
litigation challenging the Constitutionality
of any seizure by State Government of the
City's Street Maintenance funds.
Prepared by: Catherine Pritchett,
Management Analyst I
Dept: City Manager's Office
Date June 18th, 2009
Meeting Date: June 29th, 2009
Synopsis of Previous Council Action
6/15/2009 - None
Recommended Motion:
~
~ .f.-~
Signature tI
Adopt Resolution
Contact person: Catherine Pritchett, Management Analyst I
Phone: 384-5122
Supporting data attached: Staff Report, Resolution
Ward: All
FUNDING REQUIREMENTS:
No cost to the City
Source:
Finance:
Council Notes:
g~
2007'-/77
Agenda Item No. 5
lI.,q.oq
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
Resolution of the Mayor and Common Council authorizing the City Attorney to cooperate with
the League of California Cities, other cities and counties in litigation challenging the
Constitutionality of any seizure by State Government of the City's Street Maintenance funds.
Background:
During recent budget discussions, the Governor proposed the seizure of almost $1 billion in
city and county shares of revenues in the Highway Users Tax Account (HUTA) from the motor
fuel tax (or gas tax) to fund past and future highway bond debt service payments out of the
State's general fund. The State Joint Budget Conference Committee endorsed this
recommendation on a party line vote. If this seizure is approved, the projected loss for the City
of San Bernardino is $3.3 million for FY 2009/2010, and $2.5 million in FY 2010/2011.
The League of California Cities (League) has been proactive in monitoring budget decisions
that may have a direct impact on cities. It is clear to attorneys employed and retained by the
League that this recommendation, if enacted into law, would be unconstitutional. In fact, in both
1974 and 1998 voters enacted limitations on the power of the legislature to seize and use HUT A
gas tax funds, allowing only loans to the general fund on a limited basis.
The League has developed a resolution for cities that wish to direct their city attorney to
cooperate with the League, other cities and counties in planning litigation challenging the
constitutionality of the proposed theft of city and county funds. It does not commit the city to
filing litigation, but it directs the city attorney to cooperate and work with the League and other
local governments to advance the litigation.
The league has stressed the importance for cities to demonstrate a united front in opposition to
the State's proposed seizures. Upon adoption, the City Manager's Office will forward copies of
this resolution to the local legislators, the Governor, the League, the Chamber of Commerce and
other community groups that care about traffic safety and street maintenance in our community.
Financial Impact:
None
Recommendation:
Adopt Resolution.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
t(Q)rv
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING THE
CITY ATTORNEY TO COOPERATE WITH THE LEAGUE OF CALIFORNIA
CITIES, OTHER CITIES AND COUNTIES IN LITIGATION CHALLENGING THE
CONSTITUTIONALITY OF ANY SEIZURE BY STATE GOVERNMENT OF THE
CITY'S STREET MAINTENANCE FUNDS.
WHEREAS, the current economic crisis has placed the City under incredible financial
pressure resulting in painful budget cuts, including layoffs and furloughs of city workers,
decreasing maintenance and operations of public facilities, and reductions in direct services to
keep spending in line with declining revenues; and
WHEREAS, since the early 1990s the state government of California has seized over
$10 billion of city property tax revenues statewide, now amounting to over $900 million each
year, to fund the state budget even after deducting public safety program payments to cities by
the state; and
WHEREAS, in his proposed FY 2009-10 budget the Governor has proposed
transferring $1 billion of local gas taxes and weight fees to the state general fund to balance the
state budget, and over $700 million in local gas taxes permanently in future years, immediately
jeopardizing the ability of the City to maintain its streets, bridges, traffic signals, streetlights,
sidewalks and related traffic safety facilities for the use of the motoring public; and
WHEREAS, the loss of almost all of the City's gas tax funds will seriously
compromise the City's ability to perform critical traffic safety related street maintenance,
including, but not limited to, drastically curtailing patching, resurfacing, street lighting/traffic
signal maintenance, payment of electricity costs for street lights and signals, bridge
maintenance and repair, sidewalk and curb ramp maintenance and repair, and more; and
WHEREAS, in both Proposition 5 in 1974 and Proposition 2 in 1998 the voters of our
state overwhelmingly imposed restrictions on the state's ability to divert the local share of the
gas tax; and
WHEREAS, impairment of the City's ability to maintain its street pavement, traffic
signals, signs, and street lights correlates to increased liability claims; and
WHEREAS, ongoing street maintenance is a significant public safety concern.
III
III
June 22. 2009
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING THE
CITY ATTORNEY TO COOPERATE WITH THE LEAGUE OF CALIFORNIA
CITIES, OTHER CITIES AND COUNTIES IN LITIGATION CHALLENGING THE
CONSTITUTIONALITY OF ANY SEIZURE BY STATE GOVERNMENT OF THE
CITY'S STREET MAINTENANCE FUNDS.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor and Common Council of the City of San Bernardino hereby
calls upon the City Attorney to take all necessary steps to cooperate with the League of
California Cities, oth7r cities and counties in supporting litigation against the state of California
if the legislature enacts and the governor signs into law legislation that unconstitutionally
diverts the City's share of funding from the Highway Users Tax Account (HUTA), also known
as the "gas tax," to fund the state general fund.
SECTION 2. The City Manager shall send this resolution with an accompanying letter
from the Mayor to the Governor and each legislator, informing them in the clearest of terms of
the City's adamant resolve to oppose any effort to frustrate the will of the electorate as
expressed in Proposition 5 (1974) and Proposition 8 (1998) concerning the proper use and
allocation of the gas tax.
SECTION 3. A copy of this Resolution shall be sent by the City Manager to the
League of California Cities, the local chamber of commerce, and other community groups
whose members are affected by this proposal to create unsafe conditions on the streets of our
City for pedestrians, bicyclists and motorists.
11/
1/1
11/
III
June 22, 2009
1 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING THE
2 CITY ATTORNEY TO COOPERATE WITH THE LEAGUE OF CALIFORNIA
CITIES, OTHER CITIES AND COUNTIES IN LITIGATION CHALLENGING THE
3 CONSTITUTIONALITY OF ANY SEIZURE BY STATE GOVERNMENT OF THE
CITY'S STREET MAINTENANCE FUNDS.
4
5
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
6 and Common Council of the City of San Bernardino at a meeting thereof, held
7 on the day of , 2009 by the following vote, to wit:
8 Council Members:
AYES
NAYS
ABSTAIN ABSENT
9 ESTRADA
10
11
12
13 SHORETT
14
15
16
17
18
BAXTER
BRINKER
KELLEY
JOHNSON
MCCAMMACK
19
20
21
22
23
24
25
26
JA
27 Cit
28
Rachel G. Clark, City Clerk
The foregoing resolution is hereby approved this
day of
,2009.
Patrick J. Morris, Mayor
City of San Bernardino
June 18, 2009