DATE: June 12, 2018
SUBJECT:
Title
ORDINANCE AMENDING SAN DIEGO UNIFIED PORT DISTRICT CODE, ARTICLE 8, SECTION 8.15 - PARKING REGULATIONS - ENFORCEMENT TO ADD SUB-SECTION (E) A PARKING CITATION PAYMENT PLAN ALLOWING INDIGENT PERSONS TO PAY FOR PARKING CITATIONS ON A PAYMENT PLAN PURSUANT TO CALIFORNIA VEHICLE CODE SECTION 40220
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EXECUTIVE SUMMARY:
The California Legislature passed California Vehicle Code Section 40220 (VC Section 40220) on October 13, 2017. The purpose of Section 40220 is to allow anyone with indigent status to apply for a payment plan if they receive a parking citation. Section 40220 also requires that parking agencies offer a payment plan to indigent persons prior to sending a delinquent parking penalty notice to the California Department of Motor Vehicles (DMV) for a registration hold. The new legislation also establishes a number of other administrative changes, including a maximum processing fee of $5 for payment plans for customers meeting indigent eligibility requirements.
In order to comply with this new legislation, District staff recommends that the Board of Port Commissioners (Board) adopt an Ordinance amending San Diego Unified Port District (SDUPD) Code, Article 8, Section 8.15, Parking Regulations - Enforcement, to add the new payment plan as Sub-Section (e) A Parking Citation Payment Plan Allowing Indigent Persons to Pay for Parking Citations on a Payment Plan pursuant to California Vehicle Code Section 40220.
RECOMMENDATION:
Recommendation
Adopt an Ordinance Amending San Diego Unified Port District Code, Article 8, Section 8.15, Parking Regulations - Enforcement to Add Sub-Section (e) a Parking Citation Payment Plan Allowing Indigent Persons to Pay for Parking Citations on a Payment Plan Pursuant to California Vehicle Code Section 40220.
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FISCAL IMPACT:
Overall, the impact to citation revenue is anticipated to be minimal. If the Ordinance is adopted, late penalty assessments for persons participating in the payment plan will be waived and therefore it may result in less citation revenue to the District. The magnitude of this impact depends on the participation rate in the proposed plan, and at this point it is unknown what this rate will be. Cities that already have a similar payment plan in place, report that it has been minimal and less than 1% of their annual citation revenue. Additionally, it is unclear what percentage of these citation payments would have been received if no payment plan was in place.
The expense associated with the administration of the payment plan was not anticipated during the development of the Fiscal Year (FY) 2019 budget; however, the majority of the administrative cost will be covered by the $5 processing fee charged to the customer by Data Ticket, the District’s citation processor. The District will be responsible for the remaining cost of up to $2.85 per plan request. Based on an estimate of 1,600 requests (5% of citations written) the annual cost to the District would be $4,560, which the Parking department anticipates being able to cover within their FY 2019 budget. Depending on observed participation rates once the plan is in place, incremental required funds will be budgeted in the appropriate fiscal year subject to Board approval upon adoption of each fiscal year’s budget.
Citation revenue is budgeted at $904,800 for FY 2018 and is consistent with budget; $740,756 of revenue has been recorded through April 2018. Citation revenue for FY 2019 budget is $924,100.
Compass Strategic Goals:
The amendment approval of SDUPD Code, Article 8, Section 8.15, Parking Regulations - Enforcement will comply with AB 503 and establishes an indigent optional payment plan for those who need assistance paying their parking citations. The payment plan may reduce the possibility of a low-income person from incurring additional hardships after they receive citations for parking.
This agenda item supports the following Strategic Goal(s).
• A Port that the public understands and trusts.
• A Port that is a safe place to visit, work and play.
DISCUSSION:
California Vehicle Code Section 40220 was passed by California Legislature on October 13, 2017 adding Section 40220 of the California Vehicle Code to require parking agencies to offer an indigent payment plan in order to assign license plates with delinquent parking citation penalties to the DMV registration hold program. In order to place DMV registration holds, agencies must have an indigent payment plan in place commencing July 1, 2018, or DMV holds must be suspended.
The legislative purpose of California Vehicle Code Section 40220 is to remove barriers that prevent indigent persons from registering their vehicles due to unpaid parking citation fines. Adding costs of parking citations to the cost of registering a vehicle can prevent an indigent person from being able to afford their registration fees; and failure to register a vehicle reduces revenue for the state and local governments and may result in health and safety issues like uninsured drivers or vehicles that do not meet emissions standards. Additionally, a person who cannot afford to pay for their citations is subject to additional hardships if they cannot operate their vehicle due to the inability to register the vehicle. Hardships may include loss of work if they do not have transportation and can then lead to scenarios that lead to homelessness.
VC Section 40220 establishes a number of other administrative changes, including establishing a maximum processing fee of $5 for a payment plan for customers meeting indigent (low-income) eligibility requirements. The $5 processing fee will be collected by Data Ticket, Inc., the District’s citation processing vendor, as the fee for administering the payment plan. The payment plan requires a monthly installment payment of no more than $25, if amounts due are $300 or less with a maximum payment timeline of 18 months, and a waiver of all late fees and penalty assessments if the payment plan is completed. Waived late fees and penalty assessments may be restored if the person falls out of compliance with the payment plan. There shall be no prepayment penalty for paying off the balance prior to the payment period expiring. Notice of the availability of this payment plan option is required to be posted on all parking citations issued by the agency and on the agency’s public internet website. Also, AB 503 requires an agency to cancel the filing of a DMV registration hold for one time, if the registered vehicle owner or lessee subsequently enrolls in a payment plan and pays a $5 late fee. Application for a payment plan must be made within 60 days of parking citation issuance or 10 days of the administrative hearing determination (whichever is later). Individuals seeking to place their parking citations on a payment plan due to indigence must provide proof of indigency in one of the seven (7) income criteria set forth in Government Code Section 68632(a). Items include proof of Medi-Cal coverage and Supplemental Security Income (SSI), among others. Data Ticket, Inc. is the District’s citation processor and will administer all aspects of the payment plan, including notices to those who apply, if the amendment to add the payment plan is adopted.
District staff recommends the Board adopt an Ordinance amending SDUPD Code, Article 8, Section 8.15, Parking Regulations - Enforcement, to add Sub-Section (e) A Parking Citation Payment Plan Allowing Indigent Persons to Pay for Parking Citations on a Payment Plan pursuant to California VC Section 40220. The proposed SDUPD Code, Article 8, Section 8.15(e) is set out in Attachment C.
General Counsel’s Comments:
The Office of the General Counsel has reviewed the amendment to SDUPD Code, Article 8, Section 8.15, Parking Regulations - Enforcement, to add Sub-Section (e) A Parking Citation Payment Plan Allowing Indigent Persons to Pay for Parking Citations on a Payment Plan pursuant to California Vehicle Code Section 40220 and approves as to form and legality.
Environmental Review:
The proposed Board direction or action, including without limitation, amending the District Code to add parking citation payment plans for indigent persons does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.
In addition, the proposed Board action allows for the District to implement its obligations under Sections 21, 35, and 36 of the Port Act, which authorize: the Board to pass all necessary ordinances for the regulation of the District; the Board to do acts necessary and convenient for the exercise of its power; the Board to fix rates and charges for District facilities. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
The proposed Board direction or action does not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit Regulations. Therefore, issuance of a Coastal Development Permit or exclusion is not required.
Equal Opportunity Program:
Not applicable.
PREPARED BY:
Liza M. Anderson
Assistant Parking Manager, Port As A Service - Parking
Ryan Allen
Management Analyst, Port As A Service - Parking
Kristine Love
Department Manager, Port As A Service - Parking
Attachment(s):
Attachment A: California Vehicle Code Section 40220
Attachment B: Current SDUPD Code, Article 8, Section 8.15 Parking Regulations - Enforcement
Attachment C: Proposed SDUPD Code, Article 8, Section 8.15, Parking Regulations - Enforcement