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Home My WebLink About092121-05.4 ADMINISTRATIVE STAFF REPORT 5.4 TO: Mayor and Town Council September 21, 2021 SUBJECT: Resolution No. 54-2021, authorizing Extension of the Abandoned Vehicle Abatement Program and Associated Fee Subject to Voter Approval BACKGROUND In 1991, Contra Costa County and the cities within the County created the Contra Costa County Abandoned Vehicle Abatement Service Authority (Authority). The purpose of creating the Authority was to collect revenue from the State to remove abandoned vehicles from the community. All cities within the County participate in the Authority and are represented by city staff. The County is represented by the County Department of Conservation and Development, which also provides administrative support to the Authority. For the past 30 years, this partnership between the County and the cities has generated millions of dollars in revenue to remove abandoned vehicles from communities in Contra Costa County. In the fiscal year ending June 30, 2020, the Authority received approximately $1.1 M and facilitated the removal of 1,228 abandoned vehicles within Contra Costa County. The Town of Danville uses the funds received to support the salaries and equipment for our Vehicle Abatement Program. Throughout the last cycle of funding, Parking Enforcement / Vehicle Abatement Officers have conducted abatements of individual cars and clusters of vehicles to include one incident in which 29 inoperable vehicles were removed from one residential home. During that particular removal, AVAP funds were used to contract services in order to affect the removal of the 29 vehicles. DISCUSSION Revenue received by the Authority from the State comes from a $1 fee (Fee) collected for each vehicle, and an additional $2 collected for certain commercial vehicles, registered in the County. State law requires this Fee be reauthorized at the local level every ten (10) years. Reauthorization requires approval by the County Board of Supervisors, by two thirds vote, and approval by a majority of the cities having a majority of the incorporated population within the County. The Fee is set to expire on April 30, 2022. The proposed resolution would authorize the extension of the Fee until April 30, 2032. The Fee also needs to be reauthorized by the voters of Contra Costa County. In 2010, the REAVAP Extension 2 September 21, 2021 voters of California approved Proposition 26, which amended the definition of a “tax.” The Fee collected to fund the Authority’s activities is a special tax under Prop 26, and that extension of the Fee requires an election and approval by two-thirds of County voters. Therefore, the proposed resolution would authorize the Authority to submit a ballot measure to the County for inclusion on the June 7, 2022, election ballot, which is the next available election date. The cost of the election will be paid for from the revenues of the Authority. To date, at least seven (7) other counties have proposed similar tax measures for abandoned vehicle abatement programs. Five measures have passed (Amador, Butte, Calaveras, Humboldt, Mendocino), and two measures have failed (Fresno and San Benito), resulting in program termination. At least five counties have voluntarily terminated their programs (Orange, Napa, San Diego, San Mateo, Shasta). Several more counties are considering ballot measures during the current 10-year reauthorization period. In the event a local measure to extend the Fee is not passed on the June 7, 2022, ballot, the Authority will cease to operate and will be discontinued. FISCAL IMPACT This program generates on average approximately $20,000 a year in revenue for the Town. The funds are used to pay for the Town of Danville’s Parking Enforcement Program, specifically towards the salaries for Parking Enforcement / Vehicle Abatement Officers. Without these funds, vehicle abatement efforts would be severely impacted. RECOMMENDATION Adopt Resolution No. 54-2021, authorizing Extension of the Abandoned Vehicle Abatement Program and Associated Fee Subject to Voter Approval. Prepared and reviewed by: Allan Shields Police Chief Attachment: Resolution No. 54-2021 RESOLUTION NO. 54-2021 AUTHORIZING EXTENSION OF THE ABANDONED VEHICLE ABATEMENT PROGRAM AND ASSOCIATED FEE SUBJECT TO VOTER APPROVAL WHEREAS, California Vehicle Code Sections 22710 and 9250.7 authorized the establishment of the Contra Costa County Abandoned Vehicle Abatement Service Authority (“Authority”), which was formed in 1991, and authorized the imposition of a fee on vehicles registered in Contra Costa County (“AVA Fee”); and WHEREAS, collected AVA Fees are used exclusively in the Contra Costa County Abandoned Vehicle Abatement Program (“Program”), to abate, remove, and dispose of any abandoned, wrecked, dismantled, or inoperative vehicles or vehicle parts as public nuisances, whether on public or private property, and to combat neighborhood blight and decay; and WHEREAS, the Town of Danville has used fees collected to provide staffing, equipment, and contracted services to abate the blight caused by inoperable or abandoned vehicles; and WHEREAS, California Vehicle Code Sections 22710 and 9250.7 allow an extension of the AVA Fee in increments of up to 10 years; and WHEREAS, California Vehicle Code Sections 22710 and 9250.7 require a County’s Board of Supervisors, by a two-thirds vote, and a majority of the cities having a majority of the incorporated population within the County, to adopt resolutions approving the extension of the AVA Fee; and WHEREAS, Proposition 26, adopted by the voters of California in 2010, defined “tax” in a manner resulting in the classification of the AVA Fee as a special tax subject to voter approval; and WHEREAS, the current AVA Fee sunsets on April 30, 2022, and without an extension of the AVA Fee, the County and cities within the County will be unable to recover a significant portion of the costs of abating nuisance vehicles. RESOLVED that the Danville Town Council hereby: 1. Authorizes the extension of the AVA Fee and extends the authorization for the Authority to collect the AVA Fee, for a period of 10 years, subject to approval by the electors of the County. 2. Authorizes the Authority to order an election for Tuesday, June 7, 2022, and submit to the electors of Contra Costa County the question of whether the Program DocuSign Envelope ID: 9D3E2FC2-C80D-4D31-B8A2-26C93617D430 PAGE 2 OF RESOLUTION NO. 54-2021 3. and AVA Fee, as authorized by Vehicle Code sections 9250.7 and 22710, shall be renewed for 10 years, as set forth more fully in the ballot measure below. Measure __. Extension of the Abandoned Vehicle Abatement Program. Shall the measure extending the Contra Costa County Abandoned Vehicle Abatement Program and associated annual fee, at a rate of one dollar per vehicle registered in Contra Costa County and an additional two dollars for certain commercial vehicles registered in Contra Costa County, which is estimated to generate $1,100,000 annually for removing and disposing of abandoned and wrecked vehicles, until April 30, 2032, be adopted? APPROVED by the Danville Town Council at a regular meeting on September 21, 2021, by the following vote: AYES: NOES: ABSTAINED: ABSENT: ______________________________ MAYOR APPROVED AS TO FORM: ATTEST: ______________________________ ______________________________ CITY ATTORNEY CITY CLERK DocuSign Envelope ID: 9D3E2FC2-C80D-4D31-B8A2-26C93617D430