The URL can be used to link to this page

Home My WebLink About04/21/2009, B6 - PARKING FINE PASS THROUGH FOR STATE AND COUNTY SURCHARGES councit i" ft�°= April 21.2009 j agenda RepoRt 8(0 CITY O F SAN LUIS O B I S P O FROM: Jay D. Walter,Public Works Director Prepared By: Robert Horch, Parking Services Manager SUBJECT: PARIQNG FINE PASS THROUGH FOR STATE AND COUNTY SURCHARGES RECOMMENDATION 1. Adopt a resolution to approve the immediate increase of all San Luis Obispo parking fines by $10 to cover the City's cost of additional surcharges imposed by the State of California and the County of San Luis Obispo. 2. Direct staff to work with our State legislators to seek special legislative relief from the retroactive payment of surcharges for the period of January 1, 2003 to December 31,2008 DISCUSSION The State of California and the County of San Luis Obispo are both imposing mandatory surcharges on all paid parking violations totaling $9.50. These surcharges are for the financing of courthouse and criminal justice facility construction. Staff is recommending that all City parking violations be immediately increased by $10 each. Staff recommends rounding up from $9.50 to $10 in accordance with the method set forth in California Vehicle Code §9559. An immediate increase is recommended because a portion of these new surcharges have begun to accrue as of January 1,2009 and will continue to cause the Parking Fund to lose fine revenues. State Courthouse Facilities Construction Fund In 2008, Senate Bill 1407 was passed into law to fund the acquisition, rehabilitation, construction, or financing of court facilities. It is part of the Trial Court Facilities Act of 2002 which transfers the courts from local counties to State control. Senate Bill 1407 became effective on January 1,2009. This bill amended California Government Code §70372(b): ...In those cities, districts, or other issuing agencies which elect to accept parking penalties, and otherwise process parking violations pursuant to Article 3 (commencing with Section 40200) of Chapter I of Division 17 of the Vehicle Code, that city, district, or issuing agency shall observe the increased bail amounts as established by the court reflecting the added penalty provided for by this subdivision. Each agency that elects to process parking violations shall pay to the county treasurer four dollars and fifty cents (S4.50)for the parking penalty imposed by this subdivision for each violation that is not filed in court. Parking Fine Pass Through for State and County Surcharges Page 2 The City accepts parking penalties, and processes violations pursuant to this article of the California Vehicle Code and is therefore subject to this additional $4.50 penalty. The penalty is paid to the local County Treasurer who then forwards the payment to the State Controller. The new State-imposed surcharge has been accruing since the inception date of January 1, 2009. The State is allowing cities time to make changes in their fine or penalty schedules to cover the cost of these new surcharges. For the first three months of 2009, the City owes the State $30,100. These surcharges will continue to accrue until the City begins making payments to the County. Additional County Surcharges The County had the ability to impose similar surcharges on any paid parking violation in San Luis Obispo County for several decades but had not adopted this funding source to date. Staff has been told by the County Auditor—Controller's Office that two County surcharges will be approved shortly by the County Board of Supervisors and be effective July 1, 2009. This information was provided so that the City would have the time to increase its parking fines to cover the cost of these additional surcharges. Retroactive Payment of Surcharges in Place since 2003 The State Controller's Office informed the City in February 2009 that they may begin efforts to recover unpaid parking surcharges to assist the State Administrative Office of Courts. All unpaid parking fines are subject to substantial penalties and interest that would compound annually back to 2003. City staff was only recently made aware of the possibility that the State may try to recover the older fine amounts, but there has been no decision yet at the State level to pursue it. Staff has estimated that the retroactive fine amount could be as much as $395,000 since 2003, using the formula provided in the Government Code. Staff has been working to set up a meeting with Assembly Member Blakeslee to ask that he sponsor special legislation relative to the parking surcharges. The goal is not to request a change in the fundamental law that now requires the surcharge, but to write legislation to provide relief from the big (and growing) retroactive payment that will have a significant negative impact on the parking fund to pay a surcharge that staff was not even made aware of until recently. 1. County Courthouse Construction Fund California Government Code §76100 allows a County to establish a "County Courthouse Construction Fund" for the acquisition, construction, rehabilitation and financing of local courthouses. San Luis Obispo County established this fund several years ago. California Government Code § 76000(b) allows the County to impose a $2.50 surcharge on all paid parking violations. This surcharge is paid to the County Treasurer monthly with $1.50 going to the Courthouse Construction fund and $1.00 going to the County's General Fund. California Govenunent Code §76000(d) provides for reduction of$2.50 to $1.00 for the "County Courthouse Construction" surcharge as of the date of transfer of responsibility for facilities from the County to the State. There has been a "partial" transfer of the local courts to the State mainly for the court administration. However, until the debt service for local County bonds have been extinguished, the full transfer will not occur. The County bonded for $5,090,000 for the North County courthouse in Paso Robles and will be paying this indebtedness until October 2036. NO oL J Parking Fine Pass Through for State and County Surcharges Page 3 2. County Criminal Justice Facility Construction Fund California Government Code §76101 allows a County the authority to establish a "County Criminal Justice Facility Construction Fund" for the construction, reconstruction, expansion, improvement, operation, or maintenance of County criminal justice and court facilities. San Luis Obispo County established this fund several years ago. California Government Code § 76000(b) allows the County to impose another mandatory $2.50 surcharge on all paid parking violations. This surcharge is paid to the County Treasurer monthly with $1.50 going to the Criminal Justice Facility Construction fund and $1.00 going to the County's General Fund. Most public parking agencies in the State have been paying these surcharges for several decades to their local County Treasurer and have increased their fines to cover the amount. Most of the public parking agencies have increased their parking fines to cover the new State-imposed parking surcharge. Why Round Up? It is very difficult to process parking fines with fractions of dollars. Ultimately, if such a fine is unpaid, staff uses the California Department of Motor Vehicles to place holds on vehicle registrations to obtain past-due parking violations. California Vehicle Code § 9559 requires rounding up to the nearest dollar: In computing any registration ... or penalty imposed by this code ... a fraction of a dollar is disregarded, unless it equals or exceeds fifty cents ($0.50), in which in which case it is treated as one full dollar($1). Breakdown of Parking Fine Surcharges Name of Fund or Increase California Code Sections Amount State Courthouse Construction Fund 70372(b) G.C. $4.50 County Courthouse Construction Fund 76100 G.C. 76000(b) G.C. $2.50 County Criminal Justice Facility Construction Fund 76101 G.C. 76000(b) G.C. $2.50 Rounding up for processing fines 9559 V.C. $0.50 Total Assessment $10.00 Staff is recommending increasing all current City parking fines by $10 based on the above surcharges that have been approved or will be approved in the next few months. Other parking agencies in the County are moving forward with similar increases. To date, only Cuesta College has increased fines by $11 specifically to cover the State and County surcharges. FISCAL IMPACT What Would Happen if the City Does Not Increase Fines? During these difficult economic times, Council may decide not to increase parking fines to cover the cost of these new surcharges. To determine how much this will impact the City the following chart may be helpful: �� r3 Parking Fine Pass Through for State and County Surcharges Page 4 Calendar Year 2008 Number of paid parking violations 28,700 Paid parking violations in $ $769,900 $10 surcharge assessment $287,000 % of Fines 37% If the fine amounts are not increased, the City would lose approximately 37% of fine revenues annually. ALTERNATIVES 1. Do not increase parking fines. If the City does not increase the fines to cover the cost of the surcharges to be paid to the State and the County, significant revenues would be lost. This will limit the Parking Fund's ability to provide necessary parking services to the community. 2. Increase fines for the State surcharges and wait until a decision is made on the County surcharges. Council may decide to only increase parking fines to cover the ($4.50 + $0.50) State surcharges and wait until the County decision on surcharges totaling $5.00. There is a strong likelihood these surcharges will be adopted by the County within the next two months. Once Council approves a fine increase, the citation books used by Parking Enforcement and Police staff have to be reprinted. If the County does approve the fine increase, then those citation books would have to be reprinted again. While a minor cost to reprint, the administrative effort of ensuring that all of the citation books are the most recent versions is challenging. Staff recommends increasing both fines now rather than coming back at a later date which would require multiple reprinting of the citation books. 3. Delay all increases to parking fines until the local economy improves. Council may want to implement these fine increases when the local economy improves. There will be some who think that raising fines is not beneficial to the Downtown economy, which is currently challenged by reduced consumer spending. The perception is that higher parking fines may deter customers from coming Downtown; Staff does not recommend this alternative because the Parking Fund is currently challenged by the slower economy, and fines are only paid by those who violate parking rules and regulations. There are less cars coming Downtown which mean fewer revenues for the Parking Fund. ATTACHMENT Proposed Resolution and Fine Schedule T:\Council Agenda ReportsTublic Works CARTarking\State Co Surcharges\CAR Surcharges.doc �P� Attachment RESOLUTION NO. (2009 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING THE ESTABLISHMENT OF INCREASED PARKING CITATION FINES TO COVER STATE AND COUNTY PARKING VIOLATION SURCHARGES, AND REPEALING INCONSISTENT FINES IN PRIOR RESOLUTIONS WHEREAS, State law provides, in Vehicle Code Section 40203.5, that cities establish the amount of parking penalties, fees, and surcharges for parking violations; and WHEREAS, State law authorizes the City to recover administrative fees, parking penalties, fees, and collection cost related to civil debt collection, late penalties; and other related charges; and WHEREAS, State law imposes, pursuant to Government Code Section 70372(b) a $4.50 surcharge on all parking violations paid to the City; and WHEREAS, State law imposes, pursuant to Government Code Sections 76000(b), 76100, and 76101 a combined $5.00 surcharge on all parking violations paid to the City; and WHEREAS, State law, provides in Vehicle Code Section 9559, that surcharges that equal or exceed fifty cents are treated as one full dollar. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City's current Parking Penalty Schedule is hereby repealed. SECTION 2. A new Parking Penalty Schedule reflecting an increased surcharge assessment of$10.00 per parking violation for all parking violation codes is hereby adopted as set forth in Exhibit A, attached hereto and incorporated herein. Upon motion of , seconded by , and on the following vote: AYES: NOES: ABSENT:' R i Resolution No. 2009 Series ATTACHMENT ) Page 2 The foregoing resolution was adopted this day of 2009. Mayor David F. Romero ATTEST: Audrey Hooper City Clerk APPROVED AS TO FORM: Jona . owell City Attorney ATTACHMENT EXHIBIT A CITY OF SAN LUIS OBISPO PENALTY SCHEDULE i Prior CODE&SECTION DESCRIPTION PENALTY PENALTY SLMC 10.12.050 INTERFERENCE WITH POLICE/AUTHORIZED OFFICER 80 90 SLMC 10.14.030 OBEDIENCE TO TRAFFIC CONTROL DEVICES 45 55 SLMC 10.14.090 UNAUTHORIZED PAINTING ON CURBS 45 55; SLMC 10.36.020 STOPPING OR STANDING IN PARKWAYS PROHIBITED 20 301 SLMC 10.36.030 STOP/STAND/PARK IN VIOLATION OF CHAPTER 20 30 SLMC 10.36.040 NO PARKING ZONE-PROHIBITED PARKING-Also Taxi Zone(d) 40 50 SLMC 10.36.050 USE OF STREETS FOR STORAGE OF VEHICLES PROHIBITED 10 20; SLMC 10.36.070 REPAIRING OR GREASING VEHICLE ON PUBLIC STREET 10 20 SLMC 10.36.080 WASHING OR POLISHING VEHICLES 10 20, SLMC 10.36.090 PARKING ADJACENT TO SCHOOLS 10 20. SLMC 10.36.100 PARKING PROHIBITED ON NARROW STREETS 10 20' SLMC 10.36.110 PARKING ON GRADES 10 20 SLMC 10.36.120 UNLAWFUL PARKING-PEDDLERS,VENDORS 10 .20 SLMC 10.36.130 EMERGENCY PARKING SIGNS 10 20' SLMC 10.36.140 LARGE/COMMERCIAL VEHICLE PARKING NEAR INTERSECTION 10 20' SLMC 10.36.150 NIGHTTIME PARKING OF LARGE VEHICLES 10 20 SLMC 10.36.160 NIGHTTIME PARKING OF VEH W/OPERATING AIR/REFRIGERATION l0 20' SLMC 10.36.200 PARKING IN A RESIDENTIAL PERMIT PARKING AREA 25 35 SLMC 10.36.230 PERMITS-DISPLAY OF PERMITS 10 20 SLMC 10.36.233 PARKING IN YARD 35 451 SLMC 10.36.235 NO PERMIT LOT 15 25' SLMC 10.40.010 TIMED PARKING 10 MINUTES TO 10 HOURS 20 30' SLMC 10.40.020 BACKING INTO PARKING SPACE PROHIBITED 15 25, SLMC 10.40.040 PARKING PARALLEL ON ONE-WAY STREETS 18 18 SLMC 10.40.050 DIAGONAL PARKING 8 18' SLMC 10.40.060 PARKING SPACE MARKINGS 20 30 SLMC 10.40.070 NO STOPPING ZONE 8 18' SLMC 10.40.080 ALL NIGHT PARKING PROHIBITED(3-5am) 25 35. SLMC 10.44.020 CURB MARKING TO INDICATE NO STOPPING/PARKING BEGS. 10 20' SLMC 10.44.030 EFFECT OF PERMISSION TO LOAD/UNLOAD IN YELLOW ZONE 40 50 SLMC 10.44.040 EFFECT OF PERMISSION TO LOAD/UNLOAD IN WHITE ZONE 20 .30' SLMC 10.44.050 STANDING IN ANY ALLEY 20 30 SLMC 10.44.070 HANDICAPPED PARKING 275 2851 SLMC 10.48.010 CERTAIN VEHICLES PROHIBITED IN CENTRAL DISTRICT 45 55; SLMC 10.48.020 ADVERTISING VEHICLES 20 30 SLMC 10.48.030 ANIMAL DRAWN VEHICLES 20 30' SLMC 10.48.040 TRUCK ROUTES 75 85' SLMC 10.48.050 COMM.VEHICLES PROHIBITED FROM USING CERTAIN STREETS 75 85 SLMC 10.48.060 MAX.GROSS WT.LIMITS OF VEHICLES ON CERTAIN STREETS 75 85i SLMC 10.52.040 PARKING METERS-OPERATIONAL PROCEDURES 10 20! SLMC 10.52.050 UNLAWFUL TO PARK AFTER METER TIME HAS EXPIRED 17 27 SLMC 10.52.060 UNLAWFUL TO EXTEND TIME BEYOND LIMIT 2 12 SLMC 10.52.070 IMPROPER USE OF METER 2 12'. SLMC 10.52.080 PARKING METERS/STANDARDS-PROPER USE 2 12: SLMC 10.52.110 MOTORCYCLE SPACES 2 12j CVC 5204(a) CURRENT TAB IMPROPERLY ATTACHED 76 86' CVC 21113(a) VEHICLE OR ANIMAL ON PUBLIC GROUNDS-MOVING 103 113( CVC 21113(6) VEHICLE OR ANIMAL ON PUBLIC GROUNDS-PARKING 20 30 CVC 21113(c) DRIVEWAYS,PATHS,PARKING FACILITIES ON GROUNDS 20 30 CVC 22500.1 STOPPING/STANDING/PARKING: FIRE LANE 103 113! CVC 22500(a) STOPPING/STANDING/PARKING: WITHIN INTERSECTION 20 30; CVC 22500(b) STOPPING/STANDING/PARKING: ON A CROSSWALK 20 30' CVC 22500(c) STOPPING/STANDING/PARKING: BETWEEN SAFETY ZONE 20 301 CVC 22500(d) STOPPING/STANDING/PARKING: W/IN 15' FIREHOUSE ENTRANCE 20 ; 30 Page I {�( ATTACHMENT CITY OF SAN LUIS OBISPO PENALTY SCHEDULE Prior CODE&SECTION DESCRIPTION PENALTY PENALTY CVC 22500(e) STOPPING/STANDING/PARKING: PUBLIC/PRIVATE DRIVEWAY 20 30 CVC 22500(f) STOPPING/STANDING/PARKING: ON SIDEWALK 20 30 CVC 22500(g) STOPPING/STANDING/PARKING: ALONG/OPPOSITE OBSTRUCT 20 30 CVC 22500(h) STOPPING/STANDING/PARKING: ON ROADWAY SIDE OF VEHICLE 20 30 CVC 22500(i) IMPROPER PARKING IN BUS ZONE 250 260 CVC 225000) STOPPING/STANDING/PARKING: IN TUBE OR TUNNEL 20 30 CVC 22500(k) STOPPING/STANDING/PARKING: UPON BRIDGE EXCEPT AUTH 20 30 CVC 22500(1) IMPROPER PARKING IN W14EELCHAIR ACCESS 250 260 CVC 22502(a) CURB PARKING 20 30 CVC 22502(b) PARKING OPPOSITE DIRECTION OF TRAFFIC 20 30 CVC 22502(c) CURB PARKING-WHEELS MORE THAN 18 INCHES FROM CURB 20 30 CVC 22504(a) UNINCORPORATED AREA PARKING 20 30 CVC 22505(a) PARKING ON STATE HIGHWAY WHERE SIGN POSTED 20 30 CVC 22505(b) POSTED NO PARKING-STATE HIGHWAY 20 30 CVC 22507 UNLAWFUL PARKING 20 30 CVC 22507.8(a) PARKING IN SPACE FOR HANDICAPPED 275 285 CVC 22507.8(b) PARKING IN SPACE FOR HANDICAPPED-OBSTRUCT/BLOCK 275 285 CVC 22507.8(c)(1) PARKING IN SPACE FOR HANDICAPPED-ON LINES MARKED 275 285 CVC 22507.8(c)(2) PARKING IN SPACE FOR HANDICAPPED-PARKING LOT 275 285 CVC 22510 PARKING IN SNOW REMOVAL AREAS 20 30 CVC 22511.7 HANDICAP ZONE 275 285 CVC 22512 VEHICLE UNATTENDED 103 113 CVC 22513 TOW CARS-PARKING ON FREEWAY 20 30 CVC 22514 FIRE HYDRANTS 50 60 CVC 22515(a) UNATTENDED VEHICLES-SET BRAKES/STOP MOTOR 20 30 CVC 22515(b) UNATTENDED VEHICLES-SET BRAKES/WHEELS/PREVENT MOVE 20 30 CVC 22516 LOCKED VEHICLE 103 113 CVC 22517 OPENING AND CLOSING DOORS 103 113 CVC 22520.5 VENDING ON FREEWAY RIGHT-OF-WAY 103 113 CVC 22520.5(a) VENDING ON FREEWAY RIGHT-OF-WAY 103 113 CVC 22521 ILLEGAL TO PARK ON RAILROAD TRACKS 20 30 CVC 22522 PARKING NEAR SIDEWALK ACCESS RAMPS 275 285 CVC 22523(a) VEHICLE ABANDONMENT-On Highway 270 280 CVC 22523(b) VEHICLE ABANDONMENT 270 280 CVC 22650 UNLAWFUL REMOVAL OF UNATTENDED VEHICLE 103 113 CVC 22651(b) VEHICLE PARKEDILEFT STANDING TO OBSTRUCT TRAFFIC 103 113 LATE PAYMENT PENALTY 20 30 Page 2 �� a �RED FILE >�Yr2� Ca�Py E�IfFrL r MEETING AGENDA L -COUNCIL D DIR 21 April 2009 DATE Jfa1 o ITEM # r 2 CAIN DIR p r-�""^-♦� a ACAG A-S-cjrrye,2'PI RE CHIEF ff-ATTORNEY O-OW DIR To: Mayor Dave Romero and City Council members OtLERK/ORIG ZIPOLICE CHF El DEPT HEADS 2�EC DIR -pri3 Q UTIL DIR From: Deborah Cash, Executive DirectorreHR DIR San Luis Obispo Downtown Association A)&V 7m4:�5 /Crry n2GrL Re: Parking Fine Surcharge Pass Through The Downtown Association Board of Directors discussed the parking fine surcharge at its April 14 meeting. At that time,the Board was unsure if the County fee would be included. The Board was also aware that a meeting was scheduled with City representatives and Downtown Association representatives, among others, with State Assemblyman Sam Blakeslee to determine if relief could be sought for retroactive fees, interest and penalties, if they apply rather than have those paid from the Parking Enterprise Fund. So, at that time,the Board did not issue a final statement regarding the surcharge pending these unknowns. Since Friday's meeting,Tom Swem and I have circulated information to our Board regarding the CAO recommendation on the proposed surcharge: that it be collected as part of the violation fine (and therefore, not paid for by the parking fund). While most responses were that this surcharge will be unwelcome by and detrimental to Downtown businesses,the idea of jeopardizing the proposed Monterey Street parking structure is even more unattractive. While we will do our part to educate the community and our members regarding parking alternatives and increased awareness regarding the surcharge, we still believe the suddenness and size of the increase is unfair and burdensome and that our local governments should participate in any activities that could reverse or challenge current legislation. Tom Swem, Board member and chairman of the Parking and Access Committee has developed the following statement that has received Board approval. We respectfully submit this statement for your consideration prior to discussing the item tonight. It has been brought to the attention of the County of San Luis Obispo, the City of San Luis Obispo and the San Luis Obispo Downtown Association that the State of California is moving forward to implement and collect additional fines for each parking citation issued in the County and City respectively. It is the position of the San Luis Obispo Downtown Association, through action of their Board of Directors, that the City of San Luis Obispo aggressively continue to review and mitigate any additional fines mandated by the State of California that would be added to or made a part of any parking violation cited in the City of San Luis Obispo and specifically in the Downtown. Additionally, in an effort to minimize the impact of State mandated fines and possibly penalties on the Parking Enterprise Fund for the City of San Luis Obispo, the Downtown Association is in agreement with the CAO Recommendation that additional fines be added to all parking violations within the City to cover all additional State mandated fines. Although agreement with the stated CAO recommendation is done very reluctantly and with grave concern, the San Luis Obispo Downtown Association agrees with increases in the existing parking violation fines up to $10.00 per citation. Tom Swem Downtown Association Parking and Access Committee Chairman