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HomeMy WebLinkAboutStaff Report 4.E 05/18/2015DATE: May 18, 2015 TO: Honorable Mayor and Members of the City Council FROM: John C. Brown, City Manage Agenda Item #4.E SUBJECT: Discussion and Possible Adoption of Resolution Regarding Use of Funds from County Measure A on the June 2, 2015 Ballot RECOMMENDATION It is recommended that the City Council consider the addition of this item to the agenda; and if added, provide direction to staff. BACKGROUND Pursuant to Rule II (A)(3) of the Council's Rules, Policies and Procedures, after the draft agenda has been approved by the City Council, and before the posting of said agenda for the City Council meeting in which the items will be addressed, additional items shall be placed on said agenda when the City manager receives a request by two Councilmembers, either verbally or in writing, that an item be added to the agenda. An item added in this manner will be addressed by the Council if a majority of the Councilmembers present at the meeting votes to address the item. DISCUSSION The attached request was received from Vice Mayor Miller and Councilmembers Healy and Albertson asking that this item be agendized for Council consideration. ATTACHMENTS 1. Memo request 2. Draft Resolution RESOLUTION REGARDING USE OF FUNDS FROM COUNTY MEASURE A ON THE JUNE 2, 2015 BALLOT WHEREAS, the County of Sonoma has placed on the June 2, 2015 countywide ballot a measure known as Measure A; and WHEREAS, Measure A would impose a one quarter cent increase in the sales tax countywide for a period of five years; and WHEREAS, if passed by the voters, Measure A is expected to generate approximately $20 million in revenue each year; and WHEREAS, it is anticipated that Measure A proceeds would be distributed by the Sonoma County Transportation Authority among the nine cities and the County pursuant to a formula that would result in the City of Petaluma receiving approximately $1.9 million per year; and WHEREAS, Measure A is a general sales tax rather than a special sales tax, so the use of its proceeds are not legally limited to specified purposes; and WHEREAS, although Measure A would impose a general sales tax, it is the intent of the sponsors of Measure A that 90 percent of its proceeds be used for road repairs and reconstruction and 10 percent be used to support transit within Sonoma County; and WHEREAS, the unfunded need for road repairs and reconstruction in Petaluma far exceeds $1.9 million per year; and WHEREAS, the City Council of the City of Petaluma wishes to provide assurance that any Measure A proceeds received by the City of Petaluma will be used for the intended purposes; NOW, THEREFORE, BE IT RESOLVED and directed by the City Council of the City of Petaluma as follows: 1. At least 90 percent of all Measure A funds received by Petaluma will be used to cover the cost of maintaining City streets, and the cost of road repairs and reconstruction. 2. Up to 10 percent of all Measure A funds received by Petaluma will be used to the cover the cost of local and regional transit programs within Petaluma. 3. No Measure A funds received by Petaluma will be used to cover the cost of City pension obligations, or for any other purpose other than to cover the cost of maintaining City streets, repairing and reconstructing City roads, and the cost of local and regional transit programs within Petaluma. 4. City costs of covering street maintenance, repair and reconstruction and local and regional transit programs within Petaluma that may be charged Measure A fiends received by the City include the cost of project design and engineering, project management and accounting, and actual repair, maintenance, and reconstruction work, including such work performed by City staff, and overhead. Measure A fiends will not be used to support general overhead cost allocations. The Measure A funds received by Petaluma will be used to augment existing funding for road maintenance, repair, and reconstruction, and local and regional transit programs within Petaluma, and no existing funding for such costs will be diverted to other purposes based on of Measure A fiends Petaluma receives. 5. The City of Petaluma will issue a financial report annually on the use of all Measure A funds received by the City to confirm compliance with City Council direction concerning use of the funds.