HomeMy WebLinkAboutr 10542 Calling and Notice General Municipal Election November 4 2014 Submission to Voters Half Cent Local Revenue Measure.pdfRESOLUTION NO. 10542 (2014 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO,
CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A
GENERAL MUNICIPAL ELECTION TO BE HELD TUESDAY, NOVEMBER 4,
2014, FOR THE SUBMISSION TO THE VOTERS A QUESTION WHETHER TO
EXTEND AN EXISTING HALF CENT LOCAL REVENUE MEASURE FOR AN
ADDITIONAL EIGHT YEARS
WHEREAS, a General Municipal Election on November 4, 2014, has been called for the
purpose of the election of officers by Resolution No. 10518 (2014 Series), adopted on May 6,
2014; and
WHEREAS, the Elections Code and applicable local law provide the Council with the
authority to submit a ballot measure to the electorate.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Luis
Obispo that the City Council does declare, determine, and order as follows:
SECTION 1. That the City Council, pursuant to its right and authority, does order
submission to the voters at the General Municipal Election on Tuesday, November 4, 2014, the
following question:
To protect and maintain essential services and facilities — such as open
space preservation; bike lanes and sidewalks; public safety; Yes
neighborhood street paving and code enforcement; flood protection;
senior programs; and other vital services and capital improvement
projects — shall the City's Municipal Code be amended to extend the
current one -half percent local sales tax for eight years, with
independent annual audits, public goal- setting and budgeting, and a No
Citizens' Oversight Commission?
SECTION 2. That the proposed complete text of the measure submitted to the voters is
attached as Exhibit A, and shall be published in frill as part of the ballot materials, and a
complete copy shall be made available for public review in the office of the City Clerk.
SECTION 3. In all particulars not recited in this resolution, the election shall be held and
conducted as provided by state law, governing the conduct of municipal elections, unless
provided otherwise by local Charter or ordinance.
SECTION 4. Notice of the time and place of holding the election is hereby given and the
City Clerk is authorized, instructed and directed to give further notice or additional notice of the
election, in time, form and manner as required by law.
SECTION 5. That the ballots to be used at the election shall be in form and content
as required by law.
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Resolution No. 10542 (2014 Series)
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SECTION 6. That the polls shall be open at seven o'clock a.m. of the day of the
election and shall remain open continuously from that time until eight o'clock p.m. of the
same day when the polls shall be closed, except as provided in Section 14401 of the
Elections Code of the State of California.
SECTION 7. The City Clerk is hereby directed to file a certified copy of this resolution
with the San Luis Obispo County Board of Supervisors and Clerk- Recorder.
SECTION 8. That the City Clerk shall certify to the passage and adoption of this
resolution.
Upon motion of Council Member Ashbaugh, seconded by Vice Mayor Christianson, and
on the following roll call vote:
AYES: Council Members Ashbaugh and Smith, Vice Mayor Christianson and
Mayor Marx
NOES: Council Member Carpenter
ABSENT: None
The foregoing resolution was adopted this 1 st day of July 2014.
Ma, or Jan Marx
ATTEST:
APPROVED AS TO FJ.,R.M:
as Christine Dietrick
City Attorney
Exhibit A
ORDINANCE NO. (2014 Series)
AN ORDINANCE OF THE CITY COUNCIL AND THE PEOPLE OF THE
CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING CHAPTER 3.15 OF THE
MUNICIPAL CODE TO EXTEND THE EXISTING "ESSENTIAL SERVICES
TRANSACTIONS (SALES) AND USE TAX," FOR AN ADDITIONAL EIGHT YEARS
(MARCH 31, 2023), TO BE ADMINISTERED BY THE STATE BOARD OF
EQUALIZATION; UPDATE THE PURPOSE STATEMENT; AND PROVIDE FOR
A D D I T 10 N A L CITIZEN OVERSIGHT AND ACCOUNTING TRANSPARENCY.
WHEREAS, in 2006, the voters of San Luis Obispo approved the San Luis Obispo
Essential Services Measure (also commonly known as Measure Y, its 2006 ballot designation)
with 64.77 % of the vote, establishing a half -cent per dollar sales tax to address fiscal challenges
including State takeaways totaling more than $22 million over the prior 15 years, and ongoing
State funding reductions of $3 million annually; and
WHEREAS, the purpose of Measure Y was to secure a local revenue source to
protect and maintain essential community services such as neighborhood street paving and
pothole repair, traffic congestion relief, police protection, fire and paramedic services,
flood protection, senior citizen services and facilities, neighborhood code enforcement, open
space preservation and other vital general purpose services; and
WHEREAS, the voter's approval of Measure Y in 2006 allowed the City to: restore its
neighborhood paving and flood protection programs; restore sworn police positions that had
been cut, as well as restore the City's Fire Marshal to a hill -time position; and restore its open
space acquisition program, aiding in the purchase of portions of the Irish Hills, Stenner Canyon,
and Reservoir Canyon natural reserves; and also gave the City the ability to provide added
services for residents, including hiring two neighborhood services specialists, hiring two
downtown daytime police patrol officers, and hiring a ranger services maintenance worker; and
WHEREAS, the City's financial challenges continued after the adoption of Measure Y
due to the Great Recession — which impacted all of the City's major revenue sources including
property tax, transient occupancy tax, and sales tax — but even during the Great Recession, the
City was still able to maintain a high level of service for its residents; and,
WHEREAS, due to Measure Y revenue and the financial stability created by City
actions — including (1) compensation reductions agreed to by employees saving the City over
$3 million in ongoing, annual savings, and (2) pension reform efforts that require employees to
pay their share of pension costs, and implementation of three tiers of retirement benefits so that,
over time, the cost to the City for retirement benefits for new public employees will be
significantly reduced — the City has invested in new Capital Improvement Projects, such as the
Santa Rosa Skate Park, the Bob Jones Trail bridge at Los Osos Valley Road., and is in a position
to make new open space acquisitions in the City's greenbelt; and
Ordinance No. (2014 Series) Exhibit A
Page 2
WHEREAS, the City Council appointed a 10- person citizen advisory committee to
analyze the City's stewardship of Measure Y resources and report back to the City Council with
its recommendations, and following several meetings, a public opinion survey, a public open
house, and deliberations among the committee members, the committee recommended that the
City Council place a measure before the voters to extend the Essential Services Sales and Use
Tax for another eight years; and
WHEREAS, the City's Essential Services Sales and Use Tax includes substantial
accountability measures including: requirements for independent annual financial audits;
integration of use of funds into the City's budget and goal- setting process; annual community
reports; and annual citizen engagement meetings: and
WHEREAS, the City Council desires to include additional accountability measures,
including a Citizen's Revenue Enhancement Oversight Commission and a new Fiscal
Responsibility Philosophy to increase transparency and accountability and to ensure the
expenditure of revenue measure funds in alignment with evolving community priorities, as
defined through citizen engagement and City Council direction, and
WHEREAS, the City's Essential Services Transactions (Sales) and Use Tax Ordinance
is found in Chapter 3.15 of the City's Municipal Code. and
WHEREAS. Section 3.15.0 3 of this Chapter sets forth a expiration date of March 31,
2015, at which time Chapter 3.15 will expire, unless extended by the voters of the City at an
election called for that purpose; and
WHEREAS, the City Council desires to place a measure before the voters in the
November 2014 General Election to extend the City's existing one -half percent Transactions
and Use "Tax, Chapter 3.15, for another eight years, to March 31, 2023.
NOW, THEREFORE, H IT ORDAINED by the Council and the People of the
City of San Luis Obispo as follows:
SECTION 1. Chapter 3.15 of the City's Municipal Code is hereby amended and re-
enacted in full to read as follows:
Chapter 3.15
ESSENTIAL SERVICES TRANSACTIONS (,SALES) AND USE TAX
3.15.010 Title.
This chapter shall be known as the "city of San Luis Obispo essential services transactions
(sales) and use tax ordinance." The city of San Luis Obispo hereinafter shall be called the "city."
This chapter shall be applicable in the incorporated territory of the city.
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Ordinance No. (2014 Series) Exhibit A
Page 3
3.1.5.020 Purpose.
This chapter is adopted to achieve the following, among other purposes, and directs that the
provisions hereof be interpreted in order to accomplish those purposes:
A. To protect and maintain essential services and facilities— such as open space preservation;
bike lanes, sidewalks and other traffic congestion relief projects; public safety; neighborhood
street paving and code enforcement; flood protection; senior citizen programs including services
and facilities; and other vital general purpose services and capital improvement projects —by
extending a general purpose retail transactions and use tax of one -half percent in accordance with
the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code and Section 7285.9 of Part 1.7 of Division 2, which authorizes the city to adopt
this general purpose tax chapter, which shall be operative if two - thirds of the council and a
majority vote of the electors voting on the measure, vote to approve the extension of this general
purpose revenue source at an election called for that purpose.
B. To adopt a retail transactions and use tax chapter that incorporates provisions identical to
those of the sales and use tax law of the state of California insofar as those provisions are not
inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the
Revenue and Taxation Code.
C. To adopt a retail transactions and use tax chapter that imposes a tax and provides a measure
therefor that can be administered and collected by the State Board of Equalization in a manner
that adapts itself as fully as practicable to, and requires the least possible deviation from, the
existing statutory and administrative procedures followed by the State Board of Equalization in
administering and collecting the California State sales and use taxes.
D. To adopt a retail transactions and use tax chapter that can be administered in a manner that
will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of
the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes,
and at the same time minimize the burden of recordkeeping upon persons subject to taxation
under the provisions of this chapter.
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Ordinance No. (2014 Series)
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Exhibit A
3.15.030 Eight -year sunset.
The authority to levy the tax imposed by this chapter shall expire in eight years, on March 31,
2023, unless extended by the voters.
3.15.0=10 Fiscal accountability provisions — Citizen oversight and independent annual
financial audits.
Along with the city's ongoing commitment to citizen involvement as a fundamental principle of
good government, specific citizen oversight and fiscal accountability provisions are hereby
established as follows:
A. Revenue Enhancement Oversight Commission. A citizen's commission will be
established to provide transparency and maximize City accountability. The Commission
will be responsible for reviewing and making budget recommendations directly to the
City Council regarding expenditures from the essential services transactions (sales) and
use tax, and reporting annually to the community on the City's use of these tax revenues.
B. Accounting and Tracking Expenditures. The funds collected through the City of San
Luis Obispo essential services transactions (sales) and use tax ordinance shall be
accounted for and tracked by the City Treasurer separately to facilitate citizen oversight.
C. Independent Annual Financial Audit. The amount generated by this general purpose
revenue source and how it was used shall be included in the annual audit of the city's
financial operations by an independent certified public accountant.
D. Integration of the Use of Funds into the City's Budget and Goal- Setting Process. The
estimated revenue and proposed use of funds generated by this measure shall be an
integral part of the city's budget and goal- setting process, and significant opportunities
will be provided for meaningful participation by citizens in determining priority uses of
these funds.
E. Annual Community Report. A written report shall be reviewed at a public hearing by
the Revenue Enhancement Oversight Commission, and a summary will be provided
annually to every household in the community detailing how much revenue is being
generated by the measure and how funds are being spent.
F. Annual Citizen Oversight Meeting. An invitation will be extended each year to the
entire community inviting them to participate in a forum to review and discuss the use of
the revenue generated by this measure. City staff will also be available to meet with any
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Exhibit A
group that requests a specific briefing with their members to discuss and answer
questions about the revenues generated by the measure and their uses.
3.15.050 Transactions (sales) tax rate.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all
retailers in the incorporated territory of the city at the rate of one -half percent of the gross
receipts of any retailer from the sale of all tangible personal property sold at retail in said
territory on and after the operative date of this chapter.
3.15.060 Use tax rate.
An excise tax is hereby imposed on the storage, use or other consumption in the city of tangible
personal property purchased from any retailer on and after the operative date of this chapter for
storage, use or other consumption in said territory at the rate of one -half percent of the sales price
of the property. The sales price shall include delivery charges when such charges are subject to
state sales or use tax regardless of the place to which delivery is made.
3.15.070 Operative date.
"Operative date" means the first day of the first calendar quarter commencing more than one
hundred ten days after the adoption of the ordinance codified in this chapter.
3.15.080 Contract with state.
Prior to the operative date, the city shall contract with the State Board of Equalization to perform
all functions incident to the administration and operation of this transactions and use tax chapter;
provided, that if the city shall not have contracted with the State Board of Equalization prior to
the operative date, it shall nevertheless so contract and in such a case the operative date shall be
the first day of the first calendar quarter following the execution of such a contract.
3.15.090 Place of sale.
For the purposes of this chapter, all retail sales are consummated at the place of business of the
retailer unless the tangible personal property sold is delivered by the retailer or his agent to an
out -of -state destination or to a common carrier for delivery to an out -of -state destination. The
gross receipts from such sales shall include delivery charges, when such charges are subject to
the state sales and use tax, regardless of the place to which delivery is made. In the event a
retailer has no permanent place of business in the state or has more than one place of business,
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Exhibit A
the place or places at which the retail sales are consummated shall be determined under rules and
regulations to be prescribed and adopted by the State Board of Equalization.
3.15.100 Adoption of provisions of state law.
Except as otherwise provided in this chapter and except insofar as they are inconsistent with the
provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of
Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are
hereby adopted and made a part of this chapter as though fully set forth herein.
3.15.110 Limitations on adoption of state law and collection of use taxes.
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the state of California is named or referred to as the taxing agency, the name of this
city shall be substituted therefor. However, the substitution shall not be made when:
1. The word "state" is used as a part of the title of the State Controller, State
Treasurer, State Board of Control, State Board of Equalization, State Treasury, or
the Constitution of the State of California.
2. The result of that substitution would require action to be taken by or against this
city or any agency, officer, or employee thereof rather than by or against the State
Board of Equalization, in performing the functions incident to the administration or
operation of this chapter.
3. In those sections, including, but not necessarily limited to, sections referring to
the exterior boundaries of the state of California, where the result of the substitution
would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use
or other consumption of tangible personal property which would not otherwise
be exempt from this tax while such sales, storage, use or other consumption
remain subject to tax by the state under the provisions of Part 1 of Division 2
of the Revenue and Taxation Code; or
b. Impose this tax with respect to certain sales, storage, use or other
consumption of tangible personal property, which would not be subject to tax
Ordinance No. (2014 Series) Exhibit A
Page 7
by the state under the said provision of that code.
4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737,
6797 or 6828 of the Revenue and Taxation Code.
B. The word "city" shall be substituted for the word "state" in the phrase "retailer engaged in
business in this state" in Section 6203 and in the definition of that phrase in Section 6203. (Ord.
1495 §11,2006)
3.15.120 Permit not required.
If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation
Code, an additional transactor's permit shall not be required by this chapter.
3.1.130 Exemptions and exclusions. 1111.1.11-1.11.11
The following transactions shall be exempted and excluded:
A. There shall be excluded from the measure of the transactions tax and the use tax the amount
of any sales tax or use tax imposed by the state of California or by any city, city and county, or
county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of
any state- administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax the gross receipts
from: '
1. Sales of tangible personal property, other than fuel or petroleum products, to
operators of aircraft to be used or consumed principally outside the county in which
the sale is made and directly and exclusively in the use of such aircraft as common
carriers of persons or property under the authority of the laws of this state, the
United States, or any foreign government.
2. Sales of property to be used outside the city which is shipped to a point outside
the city, pursuant to the contract of sale, by delivery to such point by the retailer or
his agent, or by delivery by the retailer to a carrier for shipment to a consignee at
such point. For the purposes of this section, delivery to a point outside the city shall
be satisfied:
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Exhibit A
a. With respect to vehicles (other than commercial vehicles) subject to
registration pursuant to Chapter 1 (commencing with Section 4000) of
Division 3 of the Vehicle Code, aircraft licensed in compliance with Section
21411 of the Public Utilities Code, and undocumented vessels registered under
Division 3.5 (commencing with Section 9840) of the Vehicle Code by
registration to an out -of -city address and by a declaration under penalty of
perjury, signed by the buyer, stating that such address is, in fact, his or her
principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business
out -of -city and declaration under penalty of perjury, signed by the buyer, that
the vehicle will be operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the
property for a fixed price pursuant to a contract entered into prior to the operative
date of this chapter.
4. A lease of tangible personal property, which is a continuing sale of such
property, for any period of time for which the lessor is obligated to lease the
property for an amount fixed by the lease prior to the operative date of this chapter.
5. For the purposes of subsections (13)(3) and (4) of this section, the sale or lease of
tangible personal property shall be deemed not to be obligated pursuant to a
contract or lease for any period of time for which any party to the contract or lease
has the unconditional right to terminate the contract or lease upon notice, whether
or not such right is exercised.
C. There are exempted from the use tax imposed by this chapter, the storage, use or other
consumption in this city of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions tax
under any state - administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used
or consumed by such operators directly and exclusively in the use of such aircraft
as common carriers of persons or property for hire or compensation under a
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Exhibit A
certificate of public convenience and necessity issued pursuant to the laws of this
state, the United States, or any foreign government. This exemption is in addition to
the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation
Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to
a contract entered into prior to the operative date of this chapter.
4. If the possession of, or the exercise of any right or power over, the tangible
personal property arises under a lease which is a continuing purchase of such
property for any period of time for which the lessee is obligated to lease the
property for an amount fixed by a lease prior to the operative date of this chapter.
5. For the purposes of subsections (C)(3) and (4) of this section, storage, use, or
other consumption, or possession of, or exercise of any right or power over,
tangible personal property shall be deemed not to be obligated pursuant to a
contract or lease for any period of time for which any party to the contract or lease
has the unconditional right to terminate the contract or lease upon notice, whether
or not such right is exercised.
6. Except as provided in subsection (C)(7) of this section, a retailer engaged in
business in the city shall not be required to collect use tax from the purchaser of
tangible personal property, unless the retailer ships or delivers the property into the
city or participates within the city in making the sale of the property, including, but
not limited to, soliciting or receiving the order, either directly or indirectly, at a
place of business of the retailer in the city or through any representative, agent,
canvasser, solicitor, subsidiary, or person in the city under the authority of the
retailer.
7. A retailer engaged in business in the city shall also include any retailer of any of
the following: vehicles subject to registration pursuant to Chapter 1 (commencing
with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in
compliance with Section 21411 of the Public Utilities Code, or undocumented
vessels registered under Division 3.5 (commencing with Section 9840) of the
Vehicle Code. That retailer shall be required to collect use tax from any purchaser
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Ordinance No. (2014 Series)
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Exhibit A
who registers or licenses the vehicle, vessel or aircraft at an address in the city.
D. Any person subject to use tax under this chapter may credit against that tax any transactions
tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a
transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with
respect to the sale to the person of the property the storage, use or other consumption of which is
subject to the use tax.
3.15.140 Amendments.
All amendments subsequent to the effective date of this chapter to Part 1 of Division 2 of the
Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with
Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to
Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically
become a part of this chapter; provided, however, that no such amendment shall operate so as to
affect the rate of tax imposed by this chapter.
115450 Enjoining', eollection forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action
or proceeding in any court against the state or the city, or against any officer of the state or the
city, to prevent or enjoin the collection under this chapter, or Part 1.6 of Division 2 of the
Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
SECTION 2. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final passage,
in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into
effect upon adoption by the voters.
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Exhibit A
INTRODUCED on July 1, 2014 AND FINALLY ADOPTED by the Council of the
City of San Luis Obispo on July 15, 2006 on the following roll call vote:
AYES:
NOES:
ABSENT:
PASSED AND ADOPTED by the Voters of the City San Luis Obispo on November
4, 2014 by the following vote tally:
AYES:
NOES:
ABSENT:
Mayor Jan Marx
ATTEST:
Anthony J. Mejia, CMC
City Clerk
APPROVED AS TO FORM:.
J. Christine Dietrick
City Attorney
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