HomeMy WebLinkAboutAGENDA REPORT 1996 0702 CC SPC ITEM 07LITEM
CITY OF MOORPARK
CITY COUNCIL REPORT
TO: The Honorable City Council q.,
FROM: Mary K. Lindley, Assistant to the City Manager
iW N Sc
DATE: June 26, 1996 (CC Meeting of July 20)
SUBJECT: Consider City's Position on Pending State Legislation: SCA 36, Local
Government Special Taxes; AB 2400, Part -Time Employees; AB 3174, School
Facilities Fees; AB 2640, Exclusion of Fuel Taxes; and AB 1949, Public
Works Retention Funds
Background
The City Council is being asked to consider three legislative bills pending before the state
legislature: SCA 36 (O'Connell), local government special taxes; AB 2400 (Miller), part-time
employees; AB 3174 (Brulte), School Facilities Fees; AB 2640 (Pringle), Exclusion of Fuel
Taxes; and AB 1949 (Conroy), public works retention funds.
SCA 36
The City Council is being asked to consider support for SCA 36. If approved, the bill
would allow local governments to impose a special tax law exclusively for transportation,
public safety, or education, or any combination thereof, with a majority vote of the people
voting rather than the current two - thirds' requirement. The bill would amend California's
complicated tax and provide some flexibility for local governments by allowing these
special taxes for the very highest priority public services to be approved with a simple
majority vote.
AB 2400
Council is also being asked to consider support for AB 2400. If approved, the bill
establishes that for part-time, non represented employees, participation in PERS shall be
the sole discretion of the employer. In addition, the bill permits part-time employees to
move in and out of PERS membership depending on the amount of service in any year.
Current law requires full PERS membership once an employee crosses the service
threshold of one -half year, and the full PERS membership is continued even if the
employee falls below the service threshold.
Legislative Bills
June 26, 1996
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AB 3174
Council is being asked to consider opposing AB 3174 regarding development fees for
school facilities. The clearly stated intent of this bill is to "prohibit local agencies from
considering the adequacy of school facilities as part of the land use approval process,
whether at the policy level or with respect to the development of specific real property."
If approved, AB 3174 would cap developer fees for schools at $1.84 per square foot of
new construction and prohibit cities from exercising their legislative authority to assist in
building schools, building roads to schools, or in any other way addressing the importance
of schools to their communities. This bill not only jeopardizes cities' ability to assist with
the development of schools, it strikes a blow directly against the issue of local control.
AB 2640
The City Council is asked to consider opposing AB 2640 involving a sales tax exemption
excluding fuel taxes. If approved, this bill would exclude the amount of any state and
federal gasoline taxes from the sales price of gasoline and diesel fuel for the purposes of
state and local sales tax. Current law provides that the sales tax is applied to the cost of
gasoline and diesel fuel, including all state and federal taxes on gasoline. AB 2640 would
result in the loss of revenue to the City of both sales tax and local TDA funds.
The Council is asked to consider opposing AB 1949. If approved, the bill would reduce
cities' ability to protect themselves and motivate contractors to finish public works jobs.
The existing law contains provisions for the withholding and timely disbursement of
retention proceeds and the making of specified progress payments on construction
projects. AB 1949 would limit the amount of retention proceeds that may be withheld to
5 percent, rather than the current allowable 10 percent retention.
The League of California Cities has taken a position on the aforementioned bills consistent with
the staff recommendation.
Recommendation
Staff recommends that the City Council express support for SCA 36 and AB 3407 and opposition
of AB 2400, AB 3174, and AB 2640, and direct the Mayor to sign letters communicating the
City's position to the appropriate legislative committees.