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HomeMy WebLinkAbout01 PARKING FEE INCREASE 03-03-09a AGENDA REPORT RQ a e~dm ~, City Manager Finance Director ~~- MEETING DATE: MARCH 4, 2009 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: SCOTT M. JORDAN, CHIEF OF POLICE SUBJECT: PARKING FINE INCREASE SUMMARY Pursuant to Senate Bills 425 (2007) and 1407 (2008), the State of California has imposed "Courthouse Construction Surcharges" on all parking citations. Effective January 1, 2009, the surcharge is $4.50 per citation paid. RECOMMENDATION 1. Open and Close a Public Hearing 2. Approve an increase of $5.00 per violation on all Tustin City Code parking violations as a State Pass-Through Fee effective immediately. FISCAL IMPACT The Police Department issues approximately 12,500 parking citations a year. Failure to approve the increase would result in a loss to the General Fund of approximately $56,250. BACKGROUND SB 425 introduced by Senator Margett and signed by the Governor effective January 01, 2008, authorized additional penalties be levied on fines for criminal offenses, including a State penalty, a county penalty and penalties relating to State court construction in specified amounts. SB 425 imposed a $1.50 surcharge for court construction from each parking citation paid. SB 1407 brought forth by Senate President pro tempore Don Perata, and signed by the Governor effective January 1, 2009, authorized the issuance of up to $5 billion in lease revenue bonds for purposes of financing, planning, design, construction, rehabilitation, renovation, replacement, and leasing or acquisition of state trial court facilities. The measure also authorizes a variety of increases to penalties and fees as revenue sources for the bonds. The proceeds from these increases and surcharges would be deposited into a new account within the State Court Facilities. Construction Fund (SCFCF), the Immediate and Critical Needs Account (ICNA). Of particular interest to municipalities that impose parking penalties or otherwise process parking violations, SB 1407 amended subdivision (b) of section 70372 of the Government Code to authorize the removal of an additional $3.00 court construction penalty from each Page 2 parking violation. The additional $3.00 increases the total surcharge amount to $4.50 per citation paid. These state penalties are to be taken from the fines and forfeitures prior to any divisions and deposited with the county treasurer on a monthly basis. For ease of accounting and payment, the $4.50 surcharge has been rounded up to $5.00. i 4 ~~ s ,. SCOTT M. JOR AN, Chief of Police CLARK GALLIHER, raffic Sergeant NOTICE OF PUBLIC HEARING BEFORE THE CITY COUNCIL TUSTIN, CALIFORNIA NOTICE IS HEREBY GIVEN: That the City Council of the City of Tustin will hold a public hearing to adopt the State imposed "pass through tax" on parking fines as imposed by Senate Bill 1407. Said public hearing will take place on March 3, 2009 at 7:00 p.m., or as soon as possible thereafter in the Council Chamber, 300 Centennial Way, Tustin, California. All persons interested in this matter are invited to attend the hearing and provide Council with written and/or oral comments concerning the fees. Beginning Tuesday, February 17, 2009 the proposed fee increases may be inspected by the public between 7:30 a.m. and 5:30 p.m., Monday through Thursday and 8:00 a.m. and 5:00 p.m. on Friday in the Police Department. If you challenge the decision of the City Council on the above matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council of the City of Tustin at, or prior to, the public hearing. Pamela Stoker City Clerk Publish: The Tustin News Date: February 19 and 26, 2009