Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00299 February 15, 2022 Consent Item 12
Title: Proposed Sacramento Transportation Authority Ballot Measure Related to Abandoned Vehicle Abatement Fee for Sacramento County Abandoned Vehicle Abatement Program
Location: Citywide
Recommendation: Adopt a Resolution approving extension of the Abandoned Vehicle Abatement Program and its associated vehicle registration and supporting the Sacramento Transportation Authority’s placement of a proposed Abandoned Vehicle Abatement (AVA) Tax Measure to renew the Sacramento County Abandoned Vehicle Abatement Program on the June 7, 2022, ballot.
Contacts: Peter Lemos, Code and Housing Enforcement Chief, (916) 808-8183, [email protected], Community Development Department and Jose Mendez, Code Enforcement Manager, (916) 808-5947, [email protected], Community Development Department
Presenter: Jose Mendez, Code Enforcement Manager, (916) 808-5947, [email protected], Community Development Department
Attachments:
1-Description/Analysis
2-Resolution
File ID: 2022-00299 Consent Item 12
February 15, 2022
powered by Legistar™
City of Sacramento
Description/Analysis
Issue Detail: In 1991, the Sacramento Abandoned Vehicle Service Authority (SAVSA) was created to combat the growing problem of abandoned vehicles on public and private property.
A $1 surcharge collected from Sacramento County residents when they pay their vehicle registrations to the California Department of Motor Vehicles (DMV) provides over $1.3 million dollars in funding to reimburse local municipalities that participate in the program.
The City of Sacramento currently receives approximately $500,000 annually from SAVSA for General Fund reimbursement of abandoned vehicle abatement costs. The City of Sacramento is the second largest consumer of the funds. While the funds are administered by the State Controller, the program is governed by the Sacramento Transportation Authority (STA) which is comprised of County and City of Sacramento elected officials.
The City’s vehicle abatement program is instrumental in preserving the quality of life and the safety of its neighborhoods. In Fiscal Year 2019/2020 Code Enforcement resolved and closed nearly 43,000 complaints regarding inoperative, dangerous, and/or abandoned vehicles. The vehicles are removed, restored to service, or towed. In the first 5 months of 2021 over 7,000 cases have been brought into compliance.
The current SAVSA fee program will expire on April 30, 2022. The STA’s legal counsel has advised that the SAVSA fee qualifies as a tax under the California Proposition 26 and, therefore, its renewal requires a public vote with a supermajority adoption threshold.
At the November 18, 2021, STA board meeting, the board members discussed two possible options for program renewal: 1) including the SAVSA program in the transportation sales tax measure on the November 2022 ballot using a citizens initiative process led by the Sacramento business community and 2) working with legislative members to put the matter before the legislative body.
In December of 2021, the STA board met and approved the proposed SAVSA Tax Measure for the June 7, 2022, ballot. To place the SAVSA Tax Measure on the June 7, 2022, ballot, a majority of the cities participating in the program must also approve moving forward.
The AVA fees are collected by DMV and dispersed to SAVSA. The fees may only be used for the abatement, removal, and disposal of any abandoned, wrecked, dismantled, or inoperative vehicles, or vehicle parts located on public or private property within Sacramento County including the cities of Citrus Heights, Elk Grove, Folsom, Galt, Rancho Cordova, and Sacramento.
File ID: 2022-00299 Consent Item 12
February 15, 2022
powered by Legistar™
City of Sacramento
A Yes vote would authorize the DMV to continue collecting the AVA Fee in the amount of one ($1.00) dollar for every vehicle registered in Sacramento County, and an additional two ($2.00) dollars for certain commercial vehicles registered in Sacramento County for a term of ten years for the purpose of removal and disposal of abandoned and wrecked vehicles. The authorization of the AVA fee granted by this Measure would end on June 30, 2032.
A NO vote would mean that the DMV would not collect the AVA Fee.
The immediate impact to the City would equate to an average of $500,000 in reimbursement funds for operation of its AVA program.
Policy Considerations: California Vehicle Code Section 9250.7 allows for a ten-year extension of the SAVSA service fee upon adoption of resolutions extending the fee by two- thirds of the members of the County Board of Supervisors and the majority of the incorporated cities in the County having a majority of the incorporated population within the county.
Economic Impacts: None.
Environmental Considerations: The subject of this report does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project under the California Environmental Quality Act (CEQA). (Public Resources Code sections 21065 and 21080 and CEQA Guidelines section 15378(b)(4).) No CEQA review is required. CEQA Guidelines section 15060(c)(3).
Sustainability: There are no sustainability considerations applicable to adopting this resolution.
Commission/Committee Action: None
Rationale for Recommendation: Approving extension of the fee and supporting the ballot measure is consistent with the City’s efforts to identify and obtain alternative funding for City services and programs such as Neighborhood Code Compliance’s Vehicle Abatement Program that support its citizens’ requests to reduce the number of abandoned vehicles within the city. In Fiscal Year 2019/2020 Code Enforcement resolved and closed nearly 43,000 complaints regarding inoperative, dangerous, and/or abandoned vehicle.
Financial Considerations: The City of Sacramento currently receives approximately $500,000 annually from SAVSA for General Fund reimbursement of abandoned vehicle abatement costs. If the SAVSA program is not renewed, then the reimbursement dollars would be lost.
File ID: 2022-00299 Consent Item 12
February 15, 2022
powered by Legistar™
City of Sacramento
This would significantly impact the city’s vehicle abatement program, resulting in either service level reductions (towing fewer vehicles each year and/or longer response times to tow abandoned vehicles) or a commensurate increase in reliance on the General Fund to maintain service levels.
There are sufficient funds in the Abandoned Vehicle Legislation Program (I80215000) multi- year operating project to cover the City’s share of the cost of this ballot measure.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO.
Adopted by the Sacramento City Council
Sacramento Abandoned Vehicle (AVA) Fee Tax Measure
A. In 1991, the Sacramento Abandoned Vehicle Service Authority (SAVSA) was created to combat the growing problem of abandoned vehicles on public and private property. A $1 surcharge collected from Sacramento County residents when they pay their vehicle registrations by the Department of Motor Vehicles provides over $1.3 million dollars in funding to reimburse local municipalities that participate in the program.
B. The AVA fees are collected by the California Department of Motor Vehicles (DMV) and then dispersed to the Sacramento Abandoned Vehicle Service Authority (SAVSA). The fees may only be used for the abatement, removal, and disposal of any abandoned, wrecked, dismantled, or inoperative vehicles, or vehicle parts located on public or private property within Sacramento County including the Cities of Citrus Heights, Elk Grove, Folsom, Galt, Rancho Cordova, and Sacramento.
C. Senate Bill No. 106 allows service authorities to extend the vehicle registration fee every 10 years with the approval by two-thirds of the members of the County Board of Supervisors and confirmation by a majority of the cities comprising most of the incorporated population in the County. The SAVSA program will sunset April 30, 2022.
D. The Sacramento Abandoned Vehicle Service Authority (SAVSA) desires that the program, including a vehicle registration fee of $1.00 and an additional $2.00 for commercial vehicles, continue pursuant to Section 9250.7 of the California Vehicle Code.
E. The Abandoned Vehicle Abatement fee may be extended in increments of up to 10 years each if the board of supervisors of the County of Sacramento, by a two-thirds vote, and a majority of the cities having a majority of the incorporated population within the county adopt resolutions providing for the extension of the fee. The AVA fee qualifies as a “tax” under California Proposition 26 and, therefore, its renewal also requires a public vote with a supermajority (2/3) adoption threshold.
F. In December of 2021, the Sacramento Transportation Authority Board approved placing an AVA Fee tax measure on the June 2022 ballot
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Council approves extension of the Abandoned Vehicle Abatement Program and its associated vehicle registration fees.
Section 2. The City Council supports the placement by the Sacramento Transportation Authority of a measure on the June 7, 2022, ballot approving the Abandoned Vehicle Abatement Program and its associated vehicle registration fees.