HomeMy WebLinkAbout4.9 Gas Tax Sharing Formula Contract Sao-�
CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: -November 9, 1987
SUBJECT Gas Tax Sharing Formula Contract
EXHIBITS ATTACHED Memorandum from Assistant City Attorney dated
October 14, 1987; Draft Agreement; Letter from Don
Blubaugh, City Manager, City of Hayward dated,
eptember 21, 1987
RECOMMENDATION ':, Approve Agreement and authorize Mayor to execute same
FINANCIAL STATEMENT: This agreement provides that the City of Dublin would
not receive any County gas tax subvention if the City
maintains its 1� Sales and Use Tax Ordinance.
DESCRIPTION For approximately 30 years, Alameda County subvented
gas tax under Section 2107 of the State Gas Tax Law to cities. As County
finances have become more constrained in recent years, the County stopped
disbursing these gas tax funds to cities in Alameda County.
The cities in Alameda County became quite concerned with this action on the
County's part since there was an understanding that the cities in the County
would not levy a full 1fi sales tax in their respective cities if the County
continued to subvent gas tax funds to those cities. As a result of that
concern, a committee of cities in the County spent approximately a year
negotiating with the County over this particular issue and reached agreement
with the County on a gas tax sharing formula that would be phased in over
time.
The City of Dublin acted at the time of incorporation to levy a full 1�
sales and use tax within its City.. The Cities of Livermore and San Leandro
also were legally able to reinstate a 1G sales and use tax that had been in
effect prior to the agreement 30 years prior with the County.
Since these 3 cities collect 1� sales tax, while the other cities in Alameda
County only get . 95 of 1�, it was felt by the County that the Cities of San
Leandro, Dublin and Livermore should not receive any of the gas tax under
the proposed agreement.
In order for the agreement to become effective, the County is desirous of
having all cities in the County adopt the agreement.
If the City adopts this agreement, the City will not receive any County gas
tax funds unless the City modifies its 1fi sales and use tax downward. By
participating in the gas tax program, the City would receive slightly less
than $52, 000 per year. The difference between the .95 of 1fi and 1C sales
tax to the City is approximately $250, 000 per year.
The City of Livermore has approved this agreement and the City of San
Leandro will be considering the agreement at its meeting of November 16, '
1987.
---------------------------------------------------------------------------
COPIES TO:
ITEM NO. o
MEYERS, NAVE, RIBACK & WEST
MICHAEL R.NAVE ATTORNEYS AT LAW PENINSULA OFFICE .
STEVEN R.MEYERS CIVIC CENTER COMPLEX 1220 HOWARD AVE.,SUITE 250
NATALIE E.WEST BURLINGAME,CA 94010
ELIZABETH H.SILVER 835 EAST 14TH STREET
MICHAEL S.RIBACK SAN LEANDRO.CALIFORNIA 94577 (a15)Sae-7130
(415)577-3333 MARIN OFFICE
OF COUNSEL 1202 GRANT AVE..SUITE E
THOMAS F.BERTRAND i S i� � �; 'y .; NOVATO,CA 94947
(415)892-8878
;OCT] 15 Zy 71 REPLY TO:
�°,= ry,�J•., San Leandro
MEMORANDUM
TO: Richard Ambrose DATE: 10/14/87
City Manager
FROM: Elizabeth H. Silver, Assistant
City Attorney
RE: Gas Tax Agreement
Enclosed is the Gas Tax Agreement with the revisions I
have made. I am sending a copy ,of the revised agreement to
Dick Randall and Tom Curry, City Attorney of Livermore.
The language I added (paragraph 11) addresses the issue
of sales tax. (See also paragraph 9 . ) The other issue,
relating to a change in State legislation affecting receipt
of gas tax monies, is already addressed in paragraph 3 of the
agreement.
Elizabeth H. Silver, Assistant
City Attorney
EHS :dlg
cc: Dick Randall
Tom Curry
enclosures
AGREEMENT
This Agreement is made and entered into this day of 19
by and between the COUNTY OF ALAMEDA, (herein after referred to as "County7
and the City(s) of Alameda County
WHEREAS, the County has engaged in negotiations with representatives of the
Alameda County Mayor's Conference, representing the cities of Alameda, Albany,
Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Newark-, Oakland, ,..
Piedmont, Pleasanton, San Leandro and Union City (hereinafter referred to.-as
. City(s) and .
- WHEREAS, the intent 'of such negotiations `were to develop' a formula jor sharing ,
County gas tax monies with the cities in Alameda County for a period certain
and in the spirit of mutual cooperation between the County and the .Cities of
Alameda County;. = =
WHEREAS, these funds will be utilized for the maintenance or construction of
roads and streets in Alameda County for the benefit of county residents;
NOW, THEREFORE, in consideration of the mutual promises herein contained, it
is agreed:
1 . Effective with the fiscal year commencing July 1, 1987 and annually
thereafter for five years through the fiscal year commencing July 1, 1991
and endinq June 30, 1992, the County will distribute a portion of its "gas
tax" funds received from the State of California under Section 2104(d) of
the California Streets and Highways Code according to the formula set
forth in Exhibit A and, by example in Exhibit B, hereinafter referred to
as "Formula". .
2. Such distribution shall be phased in over the five-year period covered by
this Agreement such that the amount available for distribution to the
City(s) shall be 20% of the "net apportionment" available to the City(s)
as calculated pursuant to the "Formula" for the Fiscal Year 1987-88, 40%
of the "net apportionment" for 1988-89; 60% of the "net 'apportionment" for
1989-90; 80% of the "net apportionment" for 1990-91 ; and 100% of the "net
apportionment" available in 1991-92.
3. The allocation basis for the formula set forth in Exhibit A is based on
the state allocation of funds to the City(s) and County pursuant to
Sections 2104(d) and 2107 of the California Streets and Highways Code.
Said formula shall be adjusted, as required, to reflect any changes in the
state tax subventions under the aforementioned sections. In the event of
any other changes in the State's allocation of gas tax funds among the
City(s) and County's) , this Agreement will be subject to renegotiation
with 30 days written notice by either party. During such renegotiation
period County' s distribution to City(s) pursuant to this Agreement shall
be suspended and distributions pursuant to such newly renegotiated formula
shall be retroactive to the date of suspension, unless otherwise agreed.
-2-
4. The City(s) shall notify the County annually of the amount of funds
secured from the State under the aforementioned Section 2107 as such data
is required for calculation of the "Formula". Such notice should be sent
to:
Director of Public Works
399 Elmhurst
Hayward, CA 94544
5. The distributions identified for San Leandro, Dublin and Livermore will be
retained by the County as shown on Exhibit A items 2(c) and 2(d) .. The
County shall allocate the net funds' available. for distribution among the -.
City(s) according to the. distribution, formula set forth: in Exhibit A_ item: _
3(a), i.e., $10,000 base for each City with the balance of the funds
distributed 50% on the basis of road/street mileage as contained in the
most recent CALTRANS Assembly of Statistical Reports and 50% on the basis
of population as certified to and used by the State Department of Finance
in determining its basis for subventions for the Fiscal Year in question.
The County shall send a copy of its calculation to each City at the time
of distribution.
6. Such distribution to the City(s) will be made after the County
Auditor-Controller has closed the books for the fiscal year for which the
distribution is to be made, but in no event more than 60 days after either
a) the end of the applicable fiscal year or b) all City(s) have notified
the County of the amounts received by the City(s) under the aforementioned
Section 2107; whichever is later. The County's first payment to the
City(s) would thus be made no later than August 29, 1988, assuming all
City(s) have notified the County of their respective Section 2107 receipts.
7. The City(s) agree to assist the County in seeking means to mitigate the
cost of operating and maintaining the Oakland/Alameda estuary crossings,
the costs of which are currently borne entirely by the County.
8. In the event that the efforts of the City(s) and County pursuant to
paragraph 7 above are not successful in substantially reducing or
eliminating the cost to the County to operate and maintain the •
aforementioned estuary crossings, then the parties to this Agreement shall
commence negotiations during the fifth year of this Agreement as to the
continuation of this Agreement after June 30,1992. Such negotiations
shall take into consideration relative needs for funding roads and streets
as well as estuary crossing costs. Should the cost to the County of
estuary bridge maintenance be significantly reduced or eliminated during
the period covered by this Agreement, such reduction shall be taken into
consideration in any re-negotiation of this Agreement.
-3-
9. The City(s) confirm that the funds received under this Agreement will be
used solely for the construction and maintenance of City roads and
streets. Annually, at the same time the City(s) notify the County of
funds received under Section 2107 (pursuant to paragraph 6), the City(s)
shall certify to the County that all funds received under this Agreement
will be expended in accordance with State requirements governing the
expenditure of other qasoline tax subventions received by the City(s) .
San Leandro, Livermore, and Dublin are excused from the requirements of
this paragraph as they will receive no distributions -under this -Agreement...-.
except as provided in paragraph 11.
10. In the event of an unforeseen emergency resulting in unanticipated
_reconstruction of City or County roadways for which Federal/State relief *
is either not forthcoming or insufficient, the parties to this Agreement :._: =
,do hereby-agree to negotiate in good faith to modify the terms of this
Agreement so that the County and each of the cities participating in this
Agreement are financially able to correct the emergency situation: - The
affected parties shall make best efforts to .secure any Federal/State
relief available for such emergencies prior to any renegot.iation-of-this '
Agreement.
11. Notwithstanding the provisions of paragraphs 1 and 5 and Exhibit A, if
any or all of the Cities of Dublin, Livermore and San Leandro amend
their sales and use tax ordinances to impose a sales and use tax in an
amount less than one percent (1%) , such city or cities shall receive
the distribution identified for such city or cities as shown on
Exhibit A.
COUNTY OF ALAMEL_ CITY OF LIVER
By By
Date: Date:
CITY OF ALAMEDA CITY OF NEWARK
By By
Date: Date:
CITY OF ALBANY CITY OF OAKLAND
By By _.. .. ....
Date: Date:
CITY OF BERKELEY CITY OF PIEDMONT
By By
Date:' Date:
CITY OF DUBLIN CITY OF PLEASANTON
By By
Date: Date:
CITY OF EMERYVILLE CITY OF SAN LEANDRO
By By
Date: Date:
CITY OF FREMONT CITY OF UNION CITY
By By
Date: Date:
CITY OF HAYWARD
By -
Date-
"Exhibit A"
County Gas Tax Sharing Formula
This FORMULA is:
1. ALLOCATION BASE
l.a. Determine the sum of Section 2107 Gasoline Tax Allocation to all
Cities in Alameda County (,city 2107 allocation)
l.b. Calculate the current equivalent to the historic 5/8 cent local
gasoline tax using the following formula:
city 2107 X .625 — 5/8 cent equivalent
allocations 3.905
Where
-s.� city 2107 equals the sum of the allocations for a given
allocations fiscal year as determined in l.a. above..
.625 equals the decimal equivalent of the historic
5/8 cent tax subvention rate.
3.905 equals the current section 2107 subvention
rate.
l.c. Determine the County Section 2104(d) Gasoline Tax subvention
l.d. Calculate the current equivalent to the former one cent County gas tax
using the following formula:
Section 2104(d) X 1 — County one cent equivalent
Allocation (.75) (3.835)
Where
1 equals the former 1 cent County gas tax rate
.75 equals the current Section 2104(d) apportionment factor
3.835 equals the current gasoline tax rate
l.e. Calculate the "Apportionment Base" , which equals the sum of the City
5/8 cent equivalent as determined in l.b. , and the County one cent
equivalent as determined in l.d.
~ 2. APPORTIONMENT AMOUNT
2.a. Determine the following:
1. The sum total of city street mileage and county road mileage
(Total county-wide mileage) .
2. Total county street mileage and percentage this represents
of total county-wide mileage.
3. Total city street mileage and percentage this represents of
total county-wide mileage.
2.b. Calculate the "gross amount available for apportionment" to
cities by determining the remainder of the "Apportionment Base".
as determined in l.e. , times the decimal equivalent of the
percentage of city street miles to total countywide street .
miles; minus the city 5/8 cent gasoline tax equivalent as
calculated in l.b.
("Apportionment Base") X . $ city miles - 5/8 cent equivalent
100
equals "gross amount available for apportionment"
2.c. Determine distribution of "gross amount available for
apportionment" by:
1. Allocating to each city in the county a $10,000 minimum
allocation; then
2. Allocating one half of the remaining amount among the cities
according to the relative proportion the population of each
city bears in relation to the sum of the population of all
the cities; using those population figures certified to and
used by the State Department of Finance in determining its
basis for subventions for the fiscal year in question, and
3. Allocating the remaining half among the cities according to
the relative proportion the street mileage of each city
bears in relation to the sum of the total street mileage for
all cities in the county, as reported by CALTRANS in its
Assembly of Statistical Reports.
2.d. Deduct the apportionments for the cities of San Leandro,
Livermore and Dublin as determined in 2.c. from the "gross
amount available for apportionment" (2.b.) , to determine the
"net apportionment" available to cities.
2.e. Calculate the net phased-in.distribution amount by multiplying
the "net apportionment" as determined in 2.d. times the decimal
equivalent of the phased in percentage, according to the
._following schedule:
1987-88 — 20%
1988-89 — 40%
1989-90 — 60%
1990-91 — 80%
1991-92 — 100%
3. NET DISTRIBUTION TO CITIES
Determine the net distribution to cities using the same allocation. .
formula as 2.c. above, excluding, however, the cities of San.Leandro,
Livermore, and Dublin from determination, of total population and total _
street mileage, and. from the calculation, of the distribution..
EXHIBIT B
' COUNTY GAS TAX SAMPLE COMPUTATION
Fiscal Year 1984-85*
This FORMULA is based on the "Mayors' Formula" as it is modified below:
1. ALLOCATION -BASE
l.a. Section 2107 Gasoline Tax Allocation to Cities
Alameda $ 672,590
Albany 137,505
Berkeley 956,162
Dublin 169,856
Emeryville 36,294
Fremont 1,289,882
Hayward . 886,311
Livermore 467,157
Newark 320,912
Oakland 3,157,922
Piedmont 94,565
Pleasanton 348,223
San Leandro 596,167
Union City .415,589
l.b. Cities 5/8 cent equivalent
$9,549,135 x • . 625
3.905 _ $1,528,351
Where .625 equals 5/8 cent "historic" tax subvention rate
3.905 equals current subvention rate
l.c. County Section 2104(d) subvention = $10,693,330
l.d. County 1 cent equivalent
$10,693,330 x . . . . .1
.8 = $3,717,803
Where 1 equals former 1 cent gas tax subvention rate
.75 equals current Section 2104(d) apportionment factor
3.835 equals current gasoline tax rate
I.e. Apportionment Base:
County 1 cent equivalent $3,717,803
City 5/8 cent equivalent 1;528,351
15,246,154
* 84-85 Data: Used for illustrative purposes only.
Source: State Controller' s Streets and Highways Reports.
' PROPOSED MAYOR'S GAS TAX FORMULA
Page 2
2. APPORTIONMENT AMOUNT
2.a. Apportionment on basis of road and street mileage
Total Mileage 2,984
County miles 496 = 16.62%
City Miles 2,488 = 83.38%
SL/Liv/Dublin Miles 396 = 13.27%
included above
2.b. Apportionment to cities equals:
o Total apportionment times percentage city mileage less: (a). direct.,
city gas tax allocation; and (b) San Leandro/Livermore/Dublin ° ..
allocation. "Gross Amount Available for Apportionment equals:.:.. '
(5,246,154)(.8338) = $ 4,374,243
5/8 cent equivalent = (1,528,351)
Amount for distribution = 2,845
2.c. Gross Apportionment to Cities Equals:
Min. Total
City . . . . . Population Mileage_ Allocation Allocation
Alameda 74,900 96 10,000 158,008
Albany 15,300 27 10,000 44,264
Berkeley 106,500 221 10,000 266,530
Dublin 15,550 40 10,000 51,672
Emeryville 3,970 18 10,000 24,886
Fremont 143,200 371 10,000 395,199
Hayward 98,700 217 10,000 254,387
Livermore 51,900 174 10,000 171,169
Newark 36,600 94 10,000 108,003
Oakland 351,500 782 10,000 885,351
Piedmont 10,550 43 10,000 46,923
Pleasanton 38,350 112 10,000 120,054
San Leandro 66,400 174 10,000 189,687
Union City 45,950 112 10,000 129,760
Total 1,059,370 2,481 140,000 2,845,892
2.d. Net Apportionment equals Gross Apportionment less San Leandro,
Livermore, and Dublin allocations:
Gross Apportionment $2,845,892
Dublin (51,672)
Livermore (171,169)
San Leandro (189;687)
Net Apportionment
at 100% $2,433,364
Y
I.
PROPOSED MAYOR'S GAS TAX FORMULA
Page 3
2•e• Net Phased-In Distribution Amount
Equals:
Net allocation from
tw�q
z_. 2.d.
7x} c. above times phase-in percents
.�. 2,433,364
a 3: x 20Z in first year = 486,673 9e.
NET DISTRIBUTION TO ,CITIES
3.a.* Net Distribution
But Excludinq D to Cities Using Same Allocation Formula
distributions ublin, Livermore and San Leandro as
) Equals: 2•c• Above,
(which do not receive
City.
Min. Total
= ` Allocation
Alameda Allocation
Albany 10 000
Berkeley
10,000 33'880
Emeryvi 1 l.e 10,000 e 15.543
Fremont 10 000 51,558
,
Hayward 12,428
r Newark 10,000 72,524
Oakland 10,000 10,000 49,611
Piedmont 25,906
Pleasanton 10,000 151,895
Union City 10.000 16,016
i 10,000 27,882
10,000
29,429
Total
110,000 486,673
MB:ep4767I
6/30/87LR
L
raf '4°•
r... . .. �.^ .._•. ,.x� S..',.'f. :<1....,s:�} .,.,._, � ....t.i.r�s+eb>'n��e%',�-"_?Fi'7"nv.'.........�_ .:�*,e�:1tt:..c :•tS
A
�F HAy�
90
CITY OF HAYWAIiD • OFFICE OF OITY MANAGER
IPSeptember 21, 1987
FOR�`Q'
Richard Ambrose, City Manager
City of Dublin
P.O. Box 2340
Dublin, CA 94566
SUBJECT: GAS TAR SHARING FORMULA CONTRACT
Dear Richard:
As we discussed at the Wednesday, September 16 meeting of the Alameda
County Managers' group, I am enclosing herewith a final copy of the
proposed agreement between Alameda County and each of the respective
cities.
As I promised you at that meeting, I consulted with Mel Hing's office
to make sure there were no last minute changes, and I have been assured
that the attached agreement is acceptable to the County. For protocol
reasons, the County is requesting that each city act on this matter prior
to action being taken by the Board.
Also as I noted at the meeting, it is necessary for Livermore, San
Leandro and Dublin to be signatories to the agreement to recognize that in
effect they will not be getting funds because of their not sharing sales
tax money with the County.
I would urge each of you at the earliest possible date to schedule
this matter before your City Council for approval. Please notify my office
once such action is completed. Once all of you have so notified me, I will
then prepare an appropriate signatory page to be circulated among all of
the agencies.
If you have any questions, please give me a call.
Sincerely,
Do, al,d A. Blubaugh
City Manager
Encl.
22300 FOOTHILL BOULEVARD. HAYWARD. CA 94541 • (415)581-2345
HEARING IMPAIRED . TDD 637-7593