Agenda Notes:
- Policy Retreat Next Monday Evening

Information Items:
- Transit Sales Tax
- City Employees Exceed Goals for Clean Air

Attachments:
- City Council Policy Agenda 10-2-06

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Attached is the agenda for the Council Policy Retreat on Monday, October 2, 5:00 – 8:00 pm, Room 267.

Information Items:
Transit Sales Tax
Staff Resources:   
Mac McCarley, 704-336-4112 – mccarley@ci,.charlotte.nc.us
Bob Hagemann, 704-336-2651 – rhagemann@ci.charlotte.nc.us

The following item is on the Mecklenburg County Board of Commissioners' October 3 meeting agenda:  "Receive an update and information from the County Attorney regarding options the Board of County Commissioners has as it relates to a referendum, alteration, reallocation, etc. of the half cent transit tax and to take any action deemed appropriate."  This follows a September 26 opinion from County Attorney Marvin Bethune to the board of commissioners in which Mr. Bethune discusses, among other things, whether the ½ cent transit sales tax could be repealed and whether tax proceeds could be reallocated.  A copy of Mr. Bethune's memo is attached (w/out the Transit Governance Interlocal Agreement).

We have reviewed Mr. Bethune's opinion and agree with his conclusions regarding repeal and reallocation of the tax proceeds.

Here is our summary of the key issues:

1)  Could the tax be repealed?  Answer – Yes.

2)  How could the tax be repealed?  Answer – The tax could be repealed only if a majority of votes cast in a public referendum favor repeal.  A referendum could be called either: (a) by the board of county commissioners; or (b) upon petition signed by qualified voters in the county equal to at least 15% of the total number of votes cast in the county in the last election for Governor (approximately 48,000 signatures would be required).  If a majority of voters support repeal, the board of county commissioners would be required to do so.

3)  Could tax proceeds be reallocated?  Answer – Proceeds from the ½ cent transit sales tax can be used only for financing, constructing, operating, and maintaining public transportation systems.  The law allocates sales tax proceeds to the County, the City, and the Mecklenburg Towns on a per capita basis.  However, pursuant to the Interlocal Agreement, all tax proceeds are paid over to the City.  The reallocation of tax proceeds other than to the City would require an amendment to the Interlocal Agreement.  Such an amendment would have to be approved by the County, the City, and ¾ of the Towns.

The City Manager has requested information from the Finance Director regarding the impact of a repeal.  That information will be provided on Friday.

City Employees Exceed Goals for Clean Air
Staff Resource:  Zettie Phillips, 704-336-2233 – zphillips@ci.charlotte.nc.us

For the third straight year the City has conducted Ozone Action Days (OAD), an effort to improve air quality by encouraging City employees to use alternative forms of transportation on high ozone days.  2006 was also the inaugural year of City participation in the larger "Clean Air Works" campaign, a regional effort that encourages business to promote measures that improve air-quality.

By pledging to leave their cars at home and use alternative transportation on the highest ozone days, participating employees reduced the amounts of ozone causing emissions in the air. The most popular form of alternate transportation was carpooling. CATS, walking, and bicycling were also utilized. If an employee could not use alternative forms of transportation, they could contribute to the effort by using flex hours to come to work at lower traffic times of day, telecommute, or work 4 day weeks. Participating employees were eligible for donated prizes such as gift certificates and clean-air lawn equipment.

Headed up by CATS, the OAD program sought to reduce Nitrous Oxide (NOx) and Volatile Organic Compounds (VOC) emissions by 19.93 and 25.776 pounds, respectively. The goals, set by the Mecklenburg County Air Quality Division, were the savings expected of 1756 eligible employees.  698 employees participated (up from 599 last year), and they produced emissions reductions significantly in excess of the stated goals: 51.801 less pounds of NOx, and 170.115 less pounds of VOC.

Many thanks for the Clean Air Champions from each participating KBU. We're proud of all our employees' positive contributions to air quality.