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February 3, 2004
Construction
Industry Advancement Fund and CDTOA
Following are some of the major
issues your Industry Transportation Consultant has been
dealing with to date.
• THE COACHELLA
VALLEY:
This area is experiencing a problem not unique to Southern
California. If enough citizens complain about trucks on
their street the City Council will pass an ordinance and
the NO TRUCKS signs go up. There is no consistency from
city to city. Drivers exit one city and the route is OK,
and then enters the next city and run into "NO TRUCKS"
signs. What is the driver to do? The City's main concern
seems to be making sure the citizen is not inconvenienced
because of noise. We are working with local officials
and a local Assembly Member on this issue. Congestion,
delays, and emissions are increased on restricted routes
and safety and air quality are impacted negatively. These
piece meal regulations greatly affect our industry. Additional
costs are being passed on to end-users.
LOS ANGELES, ORANGE,
RIVERSIDE, & SAN BERNARDINO COUNTIES:
This area of 12,000 square miles is home to more than
16 million people - about half the population of the State
of California. It is the second most populous urban area
in the United States. Additional truck miles traveled
are impacting Air Quality.
FOR EXAMPLE:
• We recently had a situation with a city (San Bernardino
County), which forced the contractor to transport 50,000
tons of material an extra 2 miles. This cost the contractor
is an additional $15,000. This action by the city caused
an additional 168 lbs of smog forming particulates and
gases being sent into the air.
• We recently had a situation in which a city (Orange
County) forced the contractor to transport 150,000 cubic
yards of material an additional 4.1 miles, at an additional
cost to the contractor of $87,080. This city caused an
additional 1,080 lbs of smog forming particulates and
gasses being sent into the air.
•The trucking industry
will be impacted because a city (Ventura County) decided
to close an entire route to trucks because a few residents
complained about truck traffic/noise. This impact can't
be calculated because the route is used by the entire
trucking industry 24/7.
"Southern California
has the worst smog in the nation, in part due to diesel
emissions from heavy-duty vehicles," said Barry Wallerstein,
AQMD's executive officer. "In addition, diesel emissions
are responsible for 70 percent of the cancer risk from
air pollution in the Los Angeles area." Last year,
we experienced our smoggiest summer in more than five
years. We need every tool available to fight air pollution
and protect the health of the 16 million residents of
Southern California," he said.
We have recommended that
each city review the Thomas Guide and use the Primary
Roads that are designated in the map book. We have requested
cities within the Coachella Valley adopt our solution.
Cities are considering our recommendations for this test
program within the Coachella Valley. Hopefully it will
be adopted statewide.
• Our Economy is being affected because currently
trucks must to take longer routes. This means business,
consumers, and the economy are suffering.
• Our Air Quality
is being impacted because legal trucks that must take
longer routes are increasing emissions. This negatively
affects air quality - a major concern in Southern California.
• Our Traffic Congestion
will be reduced because legal trucks will have shorter
routes to travel
rather being limited to only minimal routes.
• SAFETY will be enhanced through uniformity.
We have provided the local cities within the Coachella
Valley a solution to their problem through the use of
a current Supreme Court ruling (Ours Garage Vs City of
Columbus). This ruling prohibits states, and cities from
regulating trucking routes, prices, and services, but
permits regulations, which only affect safety.
City officials have agreed
that these solutions may work for all concerned.
The City of Whittier
recently hired a consultant to review their permit fees.
The consultant reported back to the city that their permit
fees should be increased. The Public Works department
proposed to City Council that it raise the transportation
fees from $30.00 to $125.00 for a single trip permit.
I was contacted by a member and immediately put the city
of notice of violating C.V.C. 35795 (b).
• Permit Fee C.V.C. 35795 (b). Local authorities
may charge a fee for the issuance of permits pursuant
to this article. However, the fee established by a local
authority pursuant to this section shall be established
by ordinance or resolution adopted after notice and hearing.
The fee shall be calculated to produce a total estimated
revenue that is not more than the estimated total cost
incurred by the local authority in administering its authority
under this article and shall not exceed the fee developed
by the Department of Transportation pursuant to subdivision
(a). The fee for the issuance of permits shall be developed
in consultation with representatives of local government
and the commercial trucking industry. Notice of the hearing
shall be by publication as provided in Section 6064 of
the Government Code. The hearing shall be held before
the legislative body of the local authority. All objections
shall be considered and interested parties shall be afforded
an adequate opportunity to be heard in respect to their
objections. Special services necessitated by unusually
large or heavy loads requiring engineering investigations,
escorts, tree trimming, or other services shall be billed
separately for each permit.
A meeting was scheduled with their Public Works Director
and he agreed that the city would need to go back to Council
for approval to lower the fee to $16.00. This may take
a couple of weeks. We requested that a refund be made
to anyone who was or is being overcharged. We further
requested that the City change its current policy of not
allowing permits to be faxed. An explanation of the economic
effects of no faxes was offered. Currently a member must
send a person to the City to pick up a permit in person
or use a permit service that charges $55.00 or so. The
City expressed a problem with its ability to collect payment
and agreed to review this.
Everyone must realize that during this period of budget
cuts and shortfalls, Counties, Cities, and agencies are
looking anywhere and everywhere to generate revenue. The
City of Whittier stated that they had been charging $30.00
a permit for years. The City was hoping to generate $141,000.00
in extra revenue with this increase from our Industry.
The City of Rancho Mirage recently sent out delinquent
Business License Tax fees of $82.50 to anyone that may
have obtained a permit within the city. I was contacted
by Assemblywoman Bonnie Garcia's office to find out if
Trucking Companies that aren't residing within the city
limits needed a business license? I explained that because
of the Uniform Business License Tax that you pay at the
time your Motor Carrier Permit (MCP) permit is issued
or renewed. Companies are not required to purchase a business
license for local pick-ups and deliveries.
• Revenue and Taxation
Code Section 7234 (a) " The uniform business license
tax fee imposed by this chapter is in lieu of all city,
county, or city and county excise or license taxes of
any kind, character, or description whatever, upon the
transportation business of any for-hire motor carrier
of property"
A business license is
not required as long as you can provide the City of Rancho
Mirage a copy of your MCP permit from the DMV.
Sincerely,
Gregory D. Dineen
Industry Transportation Consultant
Cc: John Hakel, AGC; Seth Hammond,
MCOG;
Barbara Cunningham, ECA; Lee Brown, CDTOA;
Richard Lambros, BIA; Jim Burton, SCCA
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