Council adds sunset clause to tax issue
On Aug. 3 Nevada voters will have a chance to tell the city whether they want to continue the street improvement program for another five years or bring it to a halt when the current transportation sales tax expires.
Tuesday night, at the recommendation of City Manager JD Kehrman, the Nevada City Council voted 5-0 to turn down a permanent transportation sales tax and in turn voted 5-0 to pass on first and second readings an emergency ordinance putting a one-half cent transportation with a five-year sunset on the Aug. 3 ballot.
Bill McCaffree, city attorney, told the council that because the ballot issue needed to finalized quickly, there was not time to amend the first ordinance, which left passing an emergency ordinance as the only option.
Kehrman told that council that after talking to a number of people he felt that if the sales tax did not have a sunset date Nevada voters might not approve it.
Council member Brian Leonard said that he had not heard much about the issue, but he did not think it was worth taking a chance.
"I would rather have the tax with a five-year sunset than no tax," Leonard said.
Council member James McKenzie said that with the lack of trust Nevada residents have for the city government, having a five-year term for the tax would help.
Kehrman told the council that if the tax were permanent or were set to expire in 10 or 15 years voters might feel that the tax could be used to finance some type of bond issue, instead of being used for annual street maintenance.
"A five-year sunset constrains the city's ability to issue bonds (against) the tax," he said.
Kehrman had originally recommended that it would be better for the city to make the one-half cent transportation sales tax permanent since street maintenance will always be needed and it cost about $13,000 to have the issue on the ballot.
The sales tax brings in about $700,000 annually and of that amount $500,000 is earmarked for street construction, with the remainder going for street repairs.
In other business the council:
* Voted 5-0 to approve a liquor by the drink license for the Iguana Azul restaurant at 113 W. Cherry St. The license will expire July 31, 2010.
* Voted 5-0 to pass on first reading a special ordinance approving a 60-month lease for a Ricoh MP5000 copier from IKON, which has the state contract, for the city hall at a cost of $135 per month and .5 cents per copy for maintenance on the state contract. The monthly maintenance cost is estimated to average $50, which includes all labor, parts and toner.
* Voted 5-0 to pass on first reading a special ordinance approving a 60-month lease from IKON for a Ricoh MP5000 copier-printer for the finance department at a monthly cost of $126.25 with maintenance billed at .5 cents per copy. The monthly maintenance is estimated to be $42, which will include all labor, parts and toner.
* Voted 5-0 to pass on first reading a special ordinance approving a 60-month lease from IKON for a Ricoh MP3350 copier for the public safety department at a monthly cost of $114.70, with the maintenance billed at .5 cents per copy. The monthly maintenance is estimated to average $39 and includes all labor, parts and toner.
* Voted 5-0 to pass on second reading a cooperative agreement with the Nevada Public Library to provide financial savings through coordination or planning and resources, purchasing equipment and supplies and provide technical support for the library at the rate of $20 per hour.
* Voted 5-0 to give final approval to a special ordinance to bring the city code into compliance with federal standards for high visibility clothing or vests for persons granted a right-of-way solicitor's license.