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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