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FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
April 26, 2022
Agenda Item No. 7
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Grace K. Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
PREPARED BY: Tara Finnigan, Assistant City Manager,
tfinnigan@newportbeachca.gov
PHONE: 949-644-3035
TITLE: Resolution No. 2022-24: Supporting the Suspension of the State's
Gasoline Tax
ABSTRACT:
At its April 12, 2022 meeting, the City Council voted 7-0, via a straw poll, in favor of staff
bringing forward a resolution for the Council's consideration that expresses support for
the suspension of the State of California's (State's) gasoline tax for one year or longer.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Adopt Resolution No. 2022-24, A Resolution of the City Council of the City of Newport
Beach, California, Supporting the Suspension of the State of California's Gasoline Tax
for One Year or Longer.
DISCUSSION:
At the request of Mayor Kevin Muldoon, at the April 12, 2022 City Council meeting, the
City Council considered placing a resolution on a future agenda that, if adopted, would
express the Council's support for having the State's gasoline tax suspended for a period
of one year or longer. The City Council voted unanimously, via a straw poll, in favor of
staff bringing forward a resolution for the Council's consideration.
Amidst a period of record-setting inflation, California drivers are currently paying the
highest average price per gallon for gasoline in the United States, largely due to the
State's higher gas taxes and emission regulations. Suspending the gas tax for a period
of one year or more would help alleviate some of the financial burden currently shouldered
by citizens faced with the rising cost of food, housing and goods and services.
If adopted, staff will forward copies of Resolution No. 2022-24 to the State legislators that
represent the City of Newport Beach.
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Resolution No. 2022-24: Supporting the Suspension of the State's Gasoline Tax
April 26, 2022
Page 2
FISCAL IMPACT:
There is no fiscal impact to the City of Newport Beach related to the adoption of
Resolution No. 2022-24.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
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The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Resolution No. 2022-24
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ATTACHMENT A
RESOLUTION NO. 2022- 24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, SUPPORTING
THE SUSPENSION OF THE STATE OF CALIFORNIA'S
GASOLINE TAX FOR ONE YEAR OR LONGER
WHEREAS, the price of gasoline in the State of California ("State") has increased
significantly;
WHEREAS, the average price of a gallon of gasoline in the State is the highest in
the nation;
WHEREAS, the State's gasoline tax is one of the highest in the nation;
WHEREAS, most people in the State and the City of Newport Beach ("City") use
gasoline powered vehicles as their primary means of transportation;
WHEREAS, inflation in February 2022 hit a 40 -year high, placing additional
burdens on residents of the City;
WHEREAS, other states have already suspended their own states' tax on
gasoline, but the State has not yet done so; and
WHEREAS, alleviating a portion of the financial burden of continuously rising gas
prices in the State is necessary for people to pay for groceries, childcare, rent, and other
expenses.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council does hereby support the State of California
suspending its gasoline tax for a period of one year or longer.
Section 2: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 3: If any section, subsection, sentence, clause, or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause, or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses, or phrases be declared invalid or
unconstitutional.
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Resolution No. 2022 -
Page 2 of 2
Section 4: The City Council finds the adoption of this resolution is not subject to
the California Environmental Quality Act ("CEQA°) pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Section 5: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 26th day of April, 2022.
Kevin Muldoon
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
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