parking tax report 05-19-09

8/13/2019 Parking Tax Report 05-19-09

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C I T Y O F O A K L A N D FILEDA G E N D A R E P O R T O K L N D

200?.APRi6 PM 6 : l 5TO: Office of the City Adm inistratorATTN: Dan LindheimFRO M: Finance and Managem ent AgencyCommunity and Economic Development AgencyDATE: April 28, 2009RE: An Ordin ance Am ending Ch apt er 4.16 of the Oak land M unicipal Code, Park ingTax, to Exempt Large Diesel Truck Parking in Designated Parking StationsSUMMARYStaff has prepared an amendment to the Parking Tax Ordinance that will amend Chapter 4.16 ofthe Oakland M unicipal Code (CM C) to exempt large diesel trucks parked in parking stationsdesignated exclusively for large trucks (Class 7 or greater; gross vehicle weight rating of 26,001pounds or greater).The proposed amendm ent for an exemption from the Parking Tax for large diesel truck parkingwill support past and future mitigation efforts in reducing toxic environmental emissions andnegative health impacts that affect local neighborhoods around the Port. A Parking Taxexemption will encourage the use of designated parking facilities for large diesel trucks.F ISCAL IMPACTStaff recently determined that parking taxes have not been collected on the parking of largediesel trucks that use parking stations around the Port area. Discussions with various involvedparties revealed that many trucks and their trailers previously parked on residential streets andthen agreed, pursuant to discussions with the City, to park in designated fee-based parking areasin the Port area. These negotiating parties were not aware that use of these designated parkingareas result in an added Parking Tax. To sta ffs knowledg e, most if not all ofthe truck operatorswho would be exempted from the Parking Tax under the proposed amen dment to the ParkingTax ordinance have not paid the tax to the City in the past. No reven ue has been collected andno revenue has been included in current or future operating budget forecasts. However, if anexemption is not approved, staff projects additional parking tax revenue of approximately$400,000 annually.The Parking Tax rate is 18.5%,with approximately 54% ofthe revenue allocated to the GeneralPurpose Fund and approximately 46% of the revenue allocated to the Measure Y Fund. Atypical parking charge for large trucks is $125 per month, so the added Parking Tax wo uld beapproximately $23.13 per user per month.

Item:Finance and Management CommitteeApril 28, 2009


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Dan LindheimAmen dment to the Parking Tax Ordinance To Exempt Large Diesel Trucks Page 3

KEY ISSUES AND IMPACTSThe operators of parking stations for large diesel trucks stated that their operations were initiallyestablished to address Bay Conservation and Development Commission (BCDC) and Cityrequirements for appropriate mitigation of negative health and environmental impacts fromdiesel emissions caused by large diesel trucks parking and idling in neigh borhoods.The potential loss in revenue from large diesel truck parking must be weighed against the healthand environmental risks and costs from the exposure to diesel exhaust that results from largediesel trucks parking in local neigh borho ods. The additional tax burden on large diesel truckoperators must also be considered since many of these truck operators hauling freight in and outof the Port are independent contractors and are facing the financial burden of retrofitting theirtrucks with new engines to meet recently approved California Air Resources Board regulationson diesel vehicles.Com munity m embers have expressed concerns that the additional Parking Tax may cause thelarge diesel truck operators to once again start parking their trucks and trailers in localneighborhood s, especially in West O akland areas that are in close proximity to Port operations.The State of California Air Resources Board identified diesel exhaust particulate matter asa toxic air contaminant based on its potential to cause cancer, premature death, and other healthproblems. The impact from large diesel truck parking in local neighborhoods would result insubstantial, but unknown, health and enviroimiental costs according to the report Taking A T oll:The High Cost of Health, Environment and Worker Impacts of the O akland Port TruckingSystem ^, released on February 4, 2009 by the East Bay Alliance for a Sustainable Econom yand Pacific Institute.Current City agreements and comm unity concerns weigh heavily in favor of encouraging andsupporting the operation of designated parking stations that are located away from localneighborhoods to serve large diesel trucks. Althoug h the health and environm ental risks andcosts cannot be specifically estimated, it is reasonable to conclude that those risks and costswould outweigh the potential loss of Parking Tax revenue.

The report is available at http://www.workingeastbay.org

http://www.workingeastbay.org/http://www.workingeastbay.org/


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Dan LindheimAm endment to the Parking Tax Ordinance To Exempt Large Diesel Trucks Page 4

SUSTAINABLE OPPORTUNITIESEc on om ic: Exemp ting those large diesel trucks from the Parking Tax that utilize designatedparking stations would provide incentive for large diesel truck operators not to park in local'neighborhoo ds, and keep these trucks operating in Oakland. Utilization of designated parkingstations could reduce the costs associated negative impacts on health and the environment fromdiesel truck exhaust.En vir on m en tal: Designated parking stations have been established in the Port area based onexpressed comm unity concerns, by City agreem ents, and BCDC requirements, in order to protectthe environment and comm unity health. These designated parking stations were specificallyintended to deter large diesel truck parking in local neighbo rhood s. Providing an exem ptionfrom the Parking Tax specifically for large diesel trucks will support and encourage the use ofdesignated parking stations that have been established to m itigate negative impacts oncommunity health and the environment.Soc ial Equ ity: The Ordinance amendment w ill promote the fair and equitable treatment of alltaxpayers while balancing the trade off between funding for essential City services against thepotential costs resulting from health and environmental pollution from diesel exhaust.DISABILITY AND SENIOR CITIZEN ACCESSThere are no ADA or senior citizen access issues identified in this report.R E C O MM E N D A T I O N A N D R A T IO N A L EStaff recommends the City Council approve the proposed amendment to the Parking TaxOrdinance, amending Chapter 4.16 oftheOakland M unicipal Code, to exempt large trucks,Class 7 or greater, that park in designated parking stations.The proposed amendment for an exemption from the Parking Tax for large diesel truck parkingwill support past and future mitigation efforts toward the reduction of toxic environmental andnegative health impacts affecting local neighborhoods by encouraging use of designated parkingfacilities for large diesel trucks in designated areas.



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Dan LindheimAm endment to the Parking Tax Ordinance To Exempt Large Diesel Trucks Page 5

A C T I O N R E Q U E S T E D O F T H E C I T Y C O U N C I LStaff recomm ends the City Council approve the proposed am endment to the Parking TaxOrdinance, amending Chapter 4.16 of the Oakland Municipal C ode, to exempt large trucks,Class 7 or greater, that park in designated parking stations.

Respectfully submitted,

JosfepIl^T. Ye\Finance Director/ Oty^TJeasurerFinance and Management Agency

Walter CohenDirector, CEDAPrepared by:Terry Adelman, Revenue ManagerRevenue Division

APPROVED AND FORWARDED TO THEFINANGfe& MANAGEMEbHP^OMMlTTEE:

Office of the CiTy Adm imstrator



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AP PR O VED AS TO FO RM T^ND L EGAL ITr tu . . . .INTRO DUCED BY CO UNCIL M EM BERcnwftf=^cJAklll\ND

OR DINA NCE NO. C.M .S.

A N O R D I N A N C E A M E N D I N G C H A P T E R 4 . 1 6 O F T H E O A K L A N DM U N IC IP A L C O D E T O EX EM P T F R O M T H E P A R K IN G T A XO C C U P A N T S W H O P A Y R E N T F O R O C C U P A N C Y O F S P A C E S A TPAR K ING S T AT IO NS O PE R AT E D E X CL US IV E L Y F O R L AR G EDIE S EL T R UCK S .W HE R EA S, the City has entered into contracts with parking lot operatorsfor purposes of encouraging large diesel trucks to park in designated facil ities andthereby reducing the health and safety impacts of such trucks on local neighborhoods;andW HE R EA S, the City Council f inds that exemption from the P arking Tax forlarge diesel truck parking will encourage use of designated parking facil ities for largediesel trucks; andW HE R EA S, the City of Oakland desires to amend the section 4.16.0 90 ofthe Parking Tax to exempt large diesel trucks occupying spaces in large diesel parkingstations from the parking tax; and now therefore

T HE CO UNCIL O F T HE CIT Y OF O AK L A ND DO ES O R DA IN A S F O L L O W S :SECTION 1. The City Council finds and determines the forgoing recitalsto be true and correct and hereby adopts and incorporates them into this Ordinance. 'SECT ION 2 . The M unicipal Code is hereby amended to add, delete, ormodify sections as set forth below {section numbers and titles are indicated in boldtype; additions are indicated by underscoring and deletions are indicated by strikethrough typo; portions of the regulations not cited or not shown in underscoring or strike-through type are not changed.

SECT ION 3. Chapter 4.16 of the M unicipal Code, section 4.16.0 90 ishereby amended in its entirety to read as follows:4.16.090 Exemptions.

No tax shall be imposed hereunder:

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(1) eO n the rent for any occupancy or parking space in parking stations wherein therent for such occupancy is paid by the deposit of a coin or coins in a parking meterowned or operated by the city and located adjacent to said parking space.(2) On the rent for any occupancy or parking space in large truck parking stationswhere:fa) The motor vehicle occupying said parking space is a comm ercial truck with acommercial truck classification in the United States of no less than Class 7 and a GrossVehicle Weight Rating of26 001 pounds or greater.(b) P rovided that one hundred per cent (10 0 ) of the motor vehicles occupyingspaces at the large truck parking station are motor vehicles described in subsection (a)of this section; and(c) P rovided that the large truck parking station operator subm its, at the time thereturn reguired by this ordinance is due, a declaration under penalty of perjury verifyingthe facts necessary for this exemption as set forth in subsections (a) and (b).

SECT ION 5. This ordinance is exempt from the California EnvironmentalQuality Act (see e.g., CEQA Guidel ines 15378(d)(2), 15378(d)(4), 15378(d)(5),15061(B)(3); 15162);

SEC TION 6 . This ordinance shall be effective on immed iately, if passedby the affirmative vote of at least six City Council members; if this ordinance is passedby the affirmative vote of five City Councilmembers it wil l be effective seven days afterfinal passage.IN COUNCIL, OA KLA ND, CA LIFOR NIA, , 20 09P ASSED BY THE FOL L OWING VOTE:

A Y E S - BROOKS, PR ESIDENT BRUNNER, KAP L AN, KERNIGHA N, NA DEL , QUA N, REID ANDDE LA FUENTE

N OES-ABSENT-ABSTENTION-

ATTEST:LaTonda SimmonsCity Clerk and Clerk of theCouncil of the City ofOakland,California

DATE OF ATTESTA TION:

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parking tax report 05-19-09

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