Loading...
HomeMy WebLinkAboutCC AG PKT 2014-07-28 #K SEA4 AGENDA STAFF REPORT C�Llfft�1P DATE: July 23, 2014 TO: Honorable Mayor and City Council FROM: Jill R. Ingram, City Manager SUBJECT: CALL FOR ELECTION — NOVEMBER 4, 2014 -- BALLOT MEASURES ON CITY CLERK AND UTILITY USERS TAX SUMMARY OF REQUEST: Adopt the necessary ordinance and resolutions to place on the November 4, 2014 General Municipal Election the following ballot measures: 1 An amendment to the Seal Beach City Charter to make the City Clerk an appointive position; and 2. An amendment to the Municipal Code to lower and modernize the City's Utility Users Tax. BACKGROUND AND ANALYSIS: Staff recommends that the City Council adopt an ordinance calling for an election to consider the ballot measures: 1. Amending the City Charter to make the City Clerk an appointed rather than elected position; and 2. Amending the City's existing Utility Users Tax ("UUT") Ordinance to decrease the tax from 11% to 10%, and to modernize the U UT to require equal treatment of taxpayers regardless of technology. City Clerk Section 700 of the City Charter provides that the City Clerk shall be an elected officer of the City. Since this provision was enacted, the duties and responsibilities of city clerks under California law have become increasingly complex. The required professional skills include numerous functions such as keeping records of all city council meetings, ordinances and resolutions; publishing and updating the Seal Beach Municipal Code; overseeing City elections; and administering compliance with numerous state laws and City requirements, including conflict of interest and records retention requirements. Agenda Item K The City Clerk must fully understand and have familiarity with the California Government Code, Elections Code, Brown Act, Public Records Act, Political Reform Act and the Municipal Code, while remaining completely apolitical and neutral. Approximately two-thirds of California cities appoint professionally trained City Clerks. In Orange County's 34 cities, only 6 remain with an elected City Clerk, and of those 6 cities 3 are full-time, 2 are part-time receiving a stipend, and 1 is ceremonial. Since at least 1989, the City has had only two City Clerks — Joanne Yeo and Linda Devine. The City and its residents have been very fortunate that each has been able to competently and efficiently perform the duties and responsibilities required of the position. City Clerk Linda Devine has, in particular, done an exceptional job of acquiring the additional training, skills, and experience necessary for this increasingly complex position. There is no guarantee, however, that the next elected City Clerk will have the same skill sets, ability, and experience demonstrated by the current City Clerk. As such, the City Council unanimously directed staff at the February 10, 2014 City Council meeting to place a ballot measure on the November 4, 2014 consolidated General Election ballot to amend the City Charter to make the City Clerk an appointed position. By amending the Charter, the City would be able to ensure that someone with the professional training and expertise required of the position would be appointed to the position of the City Clerk. Amending the Charter to accomplish this would require the City Council to present the following question to the electorate at the November election: Seal Beach City Charter Amendment. Shall the office of city YES clerk be appointive? NO The form of the above question is established by Government Code Section 36509. In addition, Government Code Section 36510 provides: "If a majority of the votes cast on the proposition is for it, the city council shall appoint such officers at the expiration of the terms of the officers then in office, and on a vacancy in any such office. Such officers shall hold office during the pleasure of the city council and, notwithstanding Section 36502 to the contrary, are not required to be residents or electors in the city. The city council may by ordinance vest in the city manager its authority to appoint such officers." Accordingly, if the measure is adopted, the City Council would be the appointing authority unless the Council subsequently adopts an ordinance delegating that authority to the City Manager. To provide the City Council that latitude, Exhibit A includes a proposed amendment of Charter Sections 604 (b) and (c) to Page 2 accommodate the adoption of such an ordinance. In addition, staff recommends the deletion of Section 421 to provide the Council the authority to establish the City Clerk's compensation by resolution. If the voters adopt the measure, it will have no impact upon current City Clerk Linda Devine, who has two years remaining on her term. If the voters vote no, then the next election for City Clerk would be in November 2016. Utility Users Tax Over the years, the state has appropriated approximately $4,000,000 in revenues that would otherwise have gone to provide City services, such as fast 9-1-1 emergency response times by local firefighters and paramedics, and a variety of community services for families and seniors. The UUT, which is imposed on the use of certain utilities—including fuel, electricity, and telephone services— remains one of the few sources of revenues left to the City to provide these and other vital services. The City's UUT is in need of modernizing, however, to ensure that this locally controlled funding source remains available to fund local services. Modernization of the UUT would clarify that it applies to all telecommunications, ensuring that all taxpayers are treated fairly regardless of the technology used. Modernization would not increase current tax rates. To the contrary, the proposed ballot measure would decrease the UUT rate for all covered utilities to 10% down from its current rate of 11%. Amending the City's UUT to accomplish this would require the City Council to present the following question to the electorate at the November election: Seal Beach UUT Modernization/Tax Reduction Measure. YES Shall the City of Seal Beach adopt an ordinance reducing the utility users tax rate; modernizing its ordinance to require equal NO treatment of taxpayers regardless of technology, to maintain 9-1-1 response, police officer patrols, firefighter/paramedic staffing, senior/transit programs, sewers/storm drains to prevent toxic pollution from contaminating beaches and coastal waters, and other city services; and requiring low-income senior exemptions, annual audits, local control of funds, and no rate increase without voter approval? Implementation If the Council approves the ordinance to submit to the voters the two ballot questions, it will be necessary for the Council to also request the County to consolidate this election with the statewide election. It would also be necessary Page 3 to authorize the filing of ballot arguments and to direct the City Attorney to prepare an impartial analysis of each measure. Resolutions that would accomplish these actions have been prepared for the Council's consideration. ENVIRONMENTAL IMPACT: Submittal of these ballot measures is not a project as defined by the California Environmental Quality Act ("CEQA") pursuant to section 15378 (b) (4) of Title 14 of the California Code of Regulations and is not subject to CEQA review. LEGAL ANALYSIS: The City Attorney has reviewed the proposed ordinance and resolutions and approved each as to form. FINANCIAL IMPACT: The estimated cost for the County of Orange to consolidate the City's General Municipal Election with the Statewide General Election on the November 4, 2014 ballot would be between $30,000 and $40,000. $50,000 has been included in the FY 2014-2015 Budget in account number 001-013-40800. There is no anticipated fiscal impact to making the City Clerk an appointive position. While it is difficult to predict the precise impact of the proposed amendment to the City's UUT on the City's future revenue, staff anticipates that the loss of revenue from the decrease in the Telecommunications UUT rate would most likely be offset, in whole or in part, by the application of the tax to all telecommunications regardless of the technology used. However, with the reduction being extended to both gas and electric, the loss of revenue may be as high as $300,000. RECOMMENDATION: That the City Council approve and adopt the following documents regarding the proposed ballot measures: 1. Ordinance No. 1642, An Ordinance of the City of Seal Beach Ordering the Submission to the Qualified Electors of the City at the General Municipal Election to be held on Tuesday, November 4, 2014, as Called by Ordinance No. 1641, Measures to Amend the Municipal Code to Reduce and Modernize the City's Utility User Taxes and to Amend the Seal Beach City Charter to Make the City Clerk an Appointed Position. Page 4 2. Resolution No. 6493, A Resolution of the Seal Beach City Council Requesting that the Board of Supervisors of the County of Orange Consolidate a General Municipal Election to be held on Tuesday, November 4, 2014 with the Statewide General Election to be held on that Date Pursuant to §10403 of the Elections Code. 3. Resolution No. 6494, A Resolution of the Seal Beach City Council Setting Priorities for Filing Written Primary Arguments Regarding City Measures, and Directing the City Attorney to Prepare an Impartial Analysis of such Measures. SUBMITTED BY: -A t WI R. Ingram, Cify "ager Attachment(s): A. Ordinance No. 1642 B. Resolution No. 6493 C. Resolution No. 6494 Page 5 ORDINANCE NUMBER 1642 AN ORDINANCE OF THE CITY OF SEAL BEACH ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2014, AS CALLED BY ORDINANCE NO. 1641, MEASURES TO AMEND THE MUNICIPAL CODE TO REDUCE AND MODERNIZE THE CITY'S UTILITY USER TAXES AND TO AMEND THE SEAL BEACH CITY CHARTER TO MAKE THE CITY CLERK AN APPOINTED POSITION WHEREAS, a General Municipal Election on Tuesday, November 4, 2013 has been called by Ordinance No. 1641, adopted on June 23, 2014; and WHEREAS, the City Council also desires to submit to the voters at the election ballot measures on: whether to amend the Seal Beach City Charter to make the office of the city clerk an appointed position; and whether to amend the Municipal Code to reduce and modernize the City's utility user taxes. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES ORDAIN AS FOLLOWS: SECTION 1. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election the following question(s): (Ballot measure designations will be assigned by the County) Seal Beach City Charter Amendment. Shall the office of city YES clerk be appointive? NO Seal Beach UUT Modernization/Tax Reduction Measure. Shall YES_ the City of Seal Beach adopt an ordinance reducing the utility users tax rate; modernizing its ordinance to require equal NO treatment of taxpayers regardless of technology,to maintain 9-1-1 response, police officer patrols, firefighter/paramedic staffing, senior/transit programs, sewers/storm drains to prevent toxic pollution from contaminating beaches and coastal waters, and other city services; and requiring low-income senior exemptions, annual audits, local control of funds, and no rate increase without voter approval? SECTION 2. The text of the proposed City Charter amendment to be submitted to the voters is attached hereto as Exhibit "A" and incorporated herein by reference. SECTION 3. The text of the proposed ordinance amending the City's utility users tax ordinance to be to be submitted to the voters is attached hereto as Exhibit"B" and incorporated herein by reference. SECTION 4. That in all particulars not recited in this ordinance, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 5. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time,form, and manner as required by law. Ordinance Number 1642 SECTION 6. The City Clerk shall certify to the passage and adoption of this ordinance, shall cause the same bnbe published ot least three times inthe official newspaper uf the City ofSeal Beach ten days prior to the date of the election, and entered into the book ofordinances. SECTION 7. Pursuant to City Charter§416(a), this Ordinance shall take effect and bmin force immediately upon its adoption. PASSED, APPROVED and ADOPTED by the City Council ofthe City ufSeal Beach, California, at a meeting held on the 28B| _day mfJuly 2014. Mayor ATTEST: City Clerk STATE DFCALIFORNIA � COUNTY OFORANGE } SS CITY OF SEAL BEACH } 1, Linda Devine, City Clerk uf the City of Seal Beach, California, duhereby certify that the foregoing ordinance was pasoed, approved and adopted by the City Council cf the City of Seal Beach ata meeting thereof held on the__2Bdlday of 2O14, by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members and do hereby certify that Ordinance Number_1642 L_ has been published as required bylaw. City Clerk Ordinance Number 1642 EXHIBIT "A" BALLOT MEASURE AMENDING THE CHARTER OF THE CITY OF SEAL BEACH TO MAKE THE CITY CLERK AN APPOINTED POSITION (Ballot designation will bo assigned uy the County) YES Seal Beach City Charter Amendment. Shall the office of city clerk be appointive? NO |f the voters adopt this Measure, City Charter Sections 3O1. 4OO. 421. 508, 604(b) and(o).and 70O would be amended ho read esfollows: SECTION 301' Residency Requirements. The Constitution and laws of the State of California shall govern residency requirements for Council members, and the City Manager. (Amended 2814) SECTION 400. Elective Officers. The elective officers of the City shall consist of 0ma (5) members uf the City Council, one (1) elected from each af the five (5) Counoi|monin Districts aoprescribed in Article V. The terms cf elective officers oheU be four (4) years and until their respective successors qualify. The term of each elective officer shall commence on the twenty-first (21e1) day following his/her election at the time of the completion of the canvass of the election nmCumm. (Amended 2014) SECTION 421. (Repealed 2014) City G!eFk Shall Feoeive, at stated times, a ee pensation fixed by a�naRGe. SECTION 508' Voting for Candidates Nor Elective Offices at General Municipal Elections. The entiFe eleGtorate of the City Each elector may vote for one candidate for the office ofCound|member from the district in which the elector resides. Only one person shall be elected to the City Council from each district. (Amended 2OOG.2O14) SECTION 604. Powers and Duties. (of City Manager] b) To exercise administrative control over all departmanta, divisions and employees of the City gm^amment, except the City Attorney.and City Clerk. (Amended 2014) u> To appoint, promote, discipline, and remove employees ofthe City, except the City Attorney and City Clerk, subject to the Civil Service rules and regulations. (Amended 2014) SECTION 700. Officers. The officers of the City mha|l be the following: a> The five(5) members uf the City Council,who shall beelected. b} A City Clerk, . (Amended 2014) o> A City Treasurer,who shall be the Finance Director. d> A City Manager, who shall be appointed by the City Council. e} A City Attorney, who shall be appointed by the City Council. � The incumbents of such other offices as the City Council may by ordinance,or resolution, establish. Ordinance Number 1642 EXHIBIT B TEXT OF THE ORDINANCE ORDINANCE NO. AN ORDINANCE OF THE PEOPLE OF THE CITY OF SEAL BEACH AMENDING SEAL BEACH MUNICIPAL CODE CHAPTER 4.60 TO DECREASE AND MODERNIZE THE UTILITY USERS'TAX WHEREAS, the City Council desires to decrease the City's utility user taxes; WHEREAS, over the years the State has taken $4,000,000 from the City of Seal Beach; WHEREAS, the City of Seal Beach needs a reliable source of locally- controlled funds to maintain services such as fast 9-1-1 emergency response time, by local firefighters and paramedics, serving our significant senior population and all Seal Beach residents; WHEREAS, the City's existing but outdated utility users tax ordinance must be updated to ensure all taxpayers are treated equally regardless of the technology used; WHEREAS, funds from this measure will maintain senior programs, including transit services and also help maintain storm drains and sewers to prevent toxic pollution from contaminating beaches and coastal waters; WHEREAS, this measure contains rigorous fiscal oversight and accountability safeguards such as mandatory annual independent financial audits; WHEREAS, these requirements ensure that funds are spent efficiently, effectively,and as promised,cannot be taken by Sacramento; and WHEREAS, all funds raised by this measure are legally required to be used for Seal Beach services, ensuring local control because none of this money goes to Sacramento. NOW, THEREFORE, THE PEOPLE OF THE CITY OF SEAL BEACH DO HEREBY ORDAIN AS FOLLOWS: "Section 1, Chapter 4.50 (UTILITY USERS' TAX) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: Chapter 4.60 Utility Users Tax The taxes imposed by this chapter previously have been established solely to raise revenue for the general governmental purposes of the city. The revenues generated thereby shall be deposited in the general fund of the city and may be expended for any proper municipal purpose. §4.50.010 Definitions. For the purposes of this Chapter 4.50, unless otherwise apparent from the context, certain words and phrases used in this Chapter 4.50 are defined as follows: 1 Ordinance Number 1G42 a. Ancillary telecommunication services shall mean services that are associated with or incidental to the provision, use or enjoyment of telecommunications services, including but not limited to the following services: 1. Conference bridging service shall mean an ancillary service that links two (2) or more participants of on audio or video conference call and may include the provision of telephone number. Conference bridging service does not include the telecommunications services used to reach the conference bridge. 2. Detailed telecommunications billing service mhm|| mean an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement. 3. Directory eooisbenoe shall mean an ancillary aemima of providing telephone number information,and/or address information. 4. Vertical service shall mean an ancillary mamiva that is offered in connection with one or more telecommunications services,which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services. 5. Voice nno0 service shall mean an ancillary oemiom that enables the customer to otona. send or receive recorded messages. Voice mail service does not include any vertical services that the customer may be required to have in order to utilize the voice mail service. b. Billing address shall mean the mailing address of the service user where the service provider submits invoices ur bills for payment by the service users. C. City shall mean the City of Seal Beach. d. City Manager shall mean the City Manager, mr his or her authorized representative. e. Gas ahmU mean natural or manufactured gas or any m|hmrnmhve hydrocarbon fuel,which may ba substituted therefore. [ Mobile telecommunications service ohm|| mean commercial mobile radio semice, as defined in Section 20.3 of Title 47 of the Code of Federal Regulations and mu set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124)and the regulations there under. Q. Month shall mean a calendar month. K Non-utility service supplier shall mean: 1� A umn/icm supplier, other than e supplier of electric distribution services to all or a significant portion of the City of Seal Beach, which generates electricity for the sale to others, and shall include but not be limited to any publicly-owned electric utility, investor-owned uti|dy, cogenanabor, distributed generation pnovdar, exempt wholesale generator, (15 U.S.C. Section 79z-5a) municipal utility diathc±. Federal power marketing aQenoy, electric rural cooperative,or other supplier or seller ofelectricity; 2. An electric service provider (E8P), electricity broker, markebar, a0gneQmbnr, pool operahur, or other electricity supplier other than a provider of electric distribution services to all or a significant portion of the City of Seal Beanh, which ae||n or supplies electricity or supplemental aamioeo to electricity users within the City of Seal Beach; and 3. Ageo service mupp|ier, aQgrogahur, marketer orbroker, other than supplier of gas distribution services to ail or a significant portion of the City 2 Ordinance Number 1642 of Seal Beach, which sells or supplies gas*r supplemental aervioeotogosusers within the City ofSeal Beach. i. Paging service means a"telecommunications service"that provides transmission of coded radio signals for the purpose of activating specific pagers; such transmissions may include messages and/or sounds. j. Person ohoU mean. without Umitatiqn, any domestio, non-profit or foreign corporation; firm; association; syndicate;joint stock company; partnership of any kind; limited liability company; joint venture; dub; trust: K8mmVoohusettm business or common law trust; estate; society; cooperative; naoeiver, tn/ebae, guardian or other representative appointed by order of any court; any natural individual; joint power agency, municipal district or municipal oorporation, other than the City of Seal Beach. k. F9amv of primary use ohoU mean the street address representative of where the customers use of the telecommunications service primarily occurs, which must be the residential otmaed address or the primary business street address uf the customer. |. Post-paid telecommunication service shall mean the telecommunication service obtained by making a payment onacommunication- by-communication basis either through the use of m credit card or payment mechanism such as bank card, travel card, credit card, Pr debit card, or by charge made to a service number which is not associated with the origination or termination uf the telecommunication service. M. Prepaid telecommunication service (including prepaid mobile telecommunication service) shall mean the right to access telecommunication services, which must be paid for in advance and which enables the origination of communications using an access number or authorization nwdo, whether manually nr electronically dialed. n. Private telecommunication service shall mean otelecommunication service that entities the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels one connected, and includes switching capacity, extension Unea, staVunn, and any other associated services that are provided in connection with the use ofsuch channel or channels. A communications channel is o physical or virtual path of communications over which signals are transmitted between or among customer channel termination points (i.e.. the location vvheno the customer either inputs or nemaiwse the communications) o. Service address shall mean the residential street address or the business street address of the menhoe uuoc For a telecommunications service user, "service address"means either: 1. The location of the service user's telecommunication equipment from which the communication originates orterminates, regardless of where the communication io billed or paid; or, 2. If the location in paragraph a. of this definition is unknown (e.g., mobile telecommunications service VrVo|P service), the service address shall mean the location of the service user's place of primary use. I For prepaid telecommunication san/ioe. "service address" means the point Vf sale of the services where the point ofsale is within the City, or if unknmwn, the known address of the memAme user (e.g., billing address or location associated with the service numbmr). which locations shall be presumed tobethe place of primary use. P. Service supplier shall mean any penmn, including the Cih/, who provides or sells to|ecommunication, electric or gas service to o user ofsuch 3 Ordinance Number 1842 services within the City. The term shall include any person required hn collect, or self-collect under subsection 4.5D.O35 hereof, and remit a tax om imposed bythis Chapter 4.50, including its billing agent in the case of electric or gas suppliers. q. Service user shall mean o person required h) pay a tax imposed by this Chapter 4.68. c State shall mean the State ofCalifornia. S. Tax Administrator shall mean the Seal Beach Finance Direotor, or his or her authorized representative. t. Telecommunications services shall mean the tnanmmission, conveyanca, or routing of voice, dmba, audio, video, or any other information or signals to a pnint, or between or among pointo, whatever the technology uoed, and includes broadband service (e�� digital subscriber |ima (DSL), fiber optic, coaxial cable, and wireless broadband, indudingV0-Fi. VViM/QX. and Wireless MESH) to the extent Federal and/or State law permits taxation of such broadband services, now or in the future. The term "telecommunications service" includes such tnsnomimaion, oonvoyonca, or routing in which computer processing applications are used to ant on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such service is referred to as voice over internet protocol (VoIP)services or is classified by the Federal Communications Commission as enhanced or value added, and includes video and/or data service that is functionally integrated with "telecommunication services". Telecommunications services indude, but in not limited to the following aarvinem, regardless of the manner or basis on which such services are calculated or billed: ancillary telecommunication services; intraybahn, interstate and international telecommunication services; all forma of Vo|P service; mobile telecommunications aomima; prepaid telecommunication service; post-paid telecommunication service; private telecommunication service; paging service; 800 service (or any other toll-free numbers designated by the Federal Communications Commission); 900 service (or any other similar numbers designated by the Federal Communications Commission for services whereby subscribers who call inba prerecorded or live eorvice). U. VbKz (Voice Over Internet Protocol) means the digital pmmawo of making and receiving real-time voice transmissions over any Internet Protocol network. V. 800 Service means a "telecommunications service" that allows a caller to dial a toll-free number without incurring a charge for the call. The service is i Uymorketedunderthename^808.^"855."°886."^877.^ond "888^ toll-free maUing, and any subsequent numbers designated by the Federal Communications Commission. V. 900 Service means an inbound bzU "telecommunications service" purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded announcement or live service. ^Q0D service" does not include the charge for: collection mamicao provided by the seller of the "telecommunications services"to the subscriber, or service or product sold by the subscriber tnthe aubaohbe/a customer. The man/ioe is typically marketed under the name"900"service, and any subsequent numbers designated by the Federal Communications Commission. §4.50.016 Constitutional and Statutory Exemptions. o. The taxes imposed bythis Chapter 4.6U shall not apply to: 1. Any person or service if imposition of such tax upon that person or service would be in violation of Federal or State statute or the Constitution of the State of California,or the Constitution of the United States; or 4 Ordinance Number 1G42 2. The City. b. Any service user that is exempt from the tax imposed by this Chapter 4.50 pursuant to uubmautkzn (m) of this Section shall file an application with the Tax Administrator for an exemption; provided, however, this requirement shall not apply to a service user that is a State or Federal agency or subdivision with a commonly recognized name for such service. Said application shall be made upon a form approved by the Tax Administrator and shall state those facts, declared under penalty of perjury, which qualify the applicant for an exemption. and shall include the names of all service suppliers serving that service user. If deemed exempt by the Tax Administrator, such aamine user shall give the Tax Administrator timely written notice of any change in service suppliers so that the Tax Administrator can properly notify the new service supplier of the service user's tax exempt status. A eomiue user that fails to comply with this Section shall not be entitled to refund of users' tax collected and remitted to the Tax Administrator from such service user asa result of such noncompliance. C. The decision uf the Tax Administrator may be appealed pursuant bz Section 4.50.090. Filing an application with the Tax Administrator and appeal to the City Administrator, or daeiQnea, pursuant to Section 4.50.090 is m prerequisite hoa suit thereon, d. The City Council may, by resolution, establish one or more classes of persons or one or more classes of utility service otherwise subject to payment ofmtax imposed by this Chapter and provide that such classes of persons or service shall be exempt, /n whole orinpart from such tax for a specified period of time. §4.60.016 Low Income Senior Citizen. m. The tax imposed bythis Section shall not apply to: 1� Any individual 8G years of age or older who uses telephone, e|ecthc, or gas services, in or upon any premises occupied by such /ndividua|, provided that the combined adjusted gross income (as such term is used for federal income tax purposes) of all members of the household in which such individual resides, for the calendar year prior to the fiscal year (July 1st through June 30th) for which the exemption provided in this section is applied (as documented by a copy of the current federal income tax return(s) or California income tax return(s) is he|mm the U.S. Department of Housing and Urban Development (HUD) Section B Income Limit established for the calendar year ending within the fiscal year for which the exemption/sapplied. The income limit sat forth in this subsection in the year 2014 is $45.650. If for any reason, the HUD Section 8 Income limit is not adjusted in a given yuar, the income limit for purposes of the exemption provided in this section shall be established by reference to an index deemed appropriate for these purposes by the City Council. 2. Any oemioa user exempt from the taxes imposed by this chapter because of age and household income, may file mn application with the Finance Director for on exemption. Such application shall be made upon forms supplied by the Finance Director and shall recite facts under oath that qualify the uppKomnL for an exemption. The Finance Director shall review all such applications and certify as exempt those applicants determined to qualify therefore and shall notify all service suppliers affected that such exemption has been approved, stating the name of the opp|icant, the address to which such exempt service is being supp|ied, the account number. if any, and such other information as may be necessary for the service supplier to remove the exempt service user from its tax billing procedure. Upon receipt of such notice, the Vem\pa supplier shall not be required to continue to bill any further tax imposed by this chapter from such exempt service user until further notice by the Finance Director isgiven, The eanviou supplier shall eliminate such exempt service user from its tax billing procedure for the 1st regular full billings dated on or after 5 Ordinance Number 1642 November i. 1975. upon receipt of such notice from the Finance Director prior hm October 1, 1975, and thereafter, no later than 60 days after receipt of such notice from the Finance Director, 3. All exemptions shall continue and be renewed automatically by the Finance Director so long as the prerequisite facts supporting the initial qualification for exemption shall continue; provided, however, that the exemption shall automatically terminate with any change in the service address or residence of the exempt individual;further provided, such individual may nevertheless apply for new exemption with each change of address or residence. Any individual exempt from the bm shall notify the Finance Director vv/thin 10 days of any change in fact or circumstance that might disqualify said individual from receiving such exemption. It shall be a misdemeanor for any person to knowingly receive the benefits of the exemption provided by this Section when the basis for such exemption either does not exist or ceases to exist. Any aamioe supplier who determines by any means that a new or nonexempt service user is receiving oemioa through n meter or connection exempt by virtue of an exemption issued to o previous umo/ or exempt user of the same meter or connection mhm|| immediately notify the Finance Director of such fact. The Finance Director shall conduct an investigation to ascertain whether or not the provisions nfthis Section have been complied with, and, vvhenm approphate, order the service supplier to commence collecting the tax from the nonexempt service user. 4.60.020 Telecommunication UsemaTau' a. There io hereby imposed a tax upon every person in the City using telecommunication services. The tax imposed by this Section shall bamt the rate of 10Y6 of the charges made for such services and ohed| be collected from the service user by the telecommunication services supplier or its billing agent, oron otherwise provided by law. Thera is a rebuttable presumption that telecommunication services, which are billed to a billing or service address in the City, are used, in whole or in part, within the City's boundaries, and such services are subject ho taxation under this Section. There im also m rebuttable presumption that prepaid telecommunication services sold within the city are primarily used, in whole or in part, within the City and are therefore subject to taxation under this Section, If the billing address of the service user is different from the mamioa oddraoo, the service address nf the service user shall be used for purposes of imposing the tax. As used in this Section, the term "charges" shall include the value of any other wervioeo, cnedito, property of every kind or nature, or other consideration provided by the service user in exchange for the telecommunication services. b. 'Mobile telecommunications service" shall be sourced in accordance with the sourcing rules set forth in the K8nbi|* Telecommunications Sourcing Act (4 U.G.C. Section 124). The Tax Administrator may iaoma and disseminate totelecommunication service suppliers, which are subject bn the tax collection requirements of this SenUon, sourcing rules for the taxation of other telecommunication semioen, including but not limited to post-paid telecommunication oervioeo, prepaid telecommunication oen/ioeo, and private telecommunication semicen, provided that such rules one based upon custom and common prmctioethat further administrative efficiency and minimize multi- jurisdictional taxation. C. The Tax Administrator may issue and disseminate to telecommunication oamiue oupp|iero, which are subject to the tax collection naquinamanbo of this Section, an administrative ruling identifying those telecommunication mervicmm. or charges thermfore, that is subject tothe tax of paragraph a. above. This administrative ruling shall not impose a new tax, revise an existing tax methodology as stated in this Section, or increase an existing tax, except mn allowed by California Government Code Section 53750(h)(2)(A). d. Ao used in this Section,the term"telecommunication services"shall ino|ude, but is not limited to, charges for: oonneotion, reconnection, termination, 6 Ordinance Number 1642 movement, or change of telecommunication services; late payment fees; detailed billing; omntno| office and custom calling features (including but not limited to call waiting,call forwarding, caller identification and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; universal service charges; regulatory or administrative fees, charges or numhorQaa; charges or surcharges for programs imposed by mhaba or federal law (whether such charges or surcharges are imposed on the service supplier or the oustwmery, local number portability charges; and text and instant messaging. "Telecommunication gen/\oes^ shall not include digital downloads that are not "ancillary telecommunication maruicam." such as music, hngtonea, gmmea, and similar digital products. e. To prevent actual multi-jurisdictional taxation oftelecommunication services subject to tax under this Sect\on, any service uoer, upon proof to the Tax Administrator that the service user has previously paid the same tax in another stabs or city on such telecommunication memioem, shall be allowed a credit against the tax imposed to the extent of the amount of such tax legally imposed in such other State or City; pnmided, hovmever, the amount of credit shall not exceed the tax owed tothe City under this Section. f. The (ax on telecommunication services imposed by this Section shall be collected from the service user by the service supplier. The amount of tax collected in one month shall be remitted ho the Tax Administrator, and must be received by the Tax Administrator on or before the 20th day of the following month. §4.60'025 Electricity Users Tax. e. There is hereby imposed a tax upon every person using electricity in the City, The tax imposed by this subsection shall be ai the rate uf1O96ofthe charges mode for such e|ecthnity, and for any supp|amentol services or other associated activities directly related to and/or necessary for the provision of electricity to the service uoer, which are provided by service supplier or non- utility service supplier t# a service user. The tax shall be collected from the service user by the service supplier or non-utility service supplier, or its billing agent. b. As used in this suboection, the term "charges" shall apply to all services, components and items that are: |)necessary or common tu the receipt, use and enjoyment of electric service; ur, ii\ currently, or historically have beeD, included in e single or bundled rate for electric service by o local distribution company hoaclass of retail customers. The term ^chorQea" ohmU inu|ude, but is not limited to, the following charges: 1. Energy charges; 2. Distribution ur transmission charges; 3. Metering charges; 4. Standby, reoemes, finning, voltage support, rogu|adion, emergency, r other similar charges for supplemental services toself-generation service users; 5. Customer charges. late nhargem, service establishment or reestablishment charges, demand charges,fuel or other cost adjustments, power exnhaqga uhargea, independent system operator (ISO) ohorQas, stranded investment or competitive transition charges (CTC), public purpose program ohergeo, nuclear decommissioning uhorQes, trust transfer amounts (bond financing charges), franchise fees, franchise aunohar0ee, annual and monthly uharges, and other charges, fees and surcharges which are necessary to or common for the receipt, use and enjoyment of electric service;and 7 Ordinance Number 1G42 B. Chergeo, feam, or surcharges for electricity oanviosm or pnograms, which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commimsion, or by any state or federal |aw, whether or not such uhoq]aa, feee, or surcharges appear on a bundled or line item basis on the customer bi||ing, or whether they are imposed on the service provider pr the customer. C. As used in this mubmection, the bmnn "charges" shall include the value of any other services, onodita, property mf every kind or nature, or other consideration provided by the service user in exchange for the electricity or services related tu the provision of such electricity. d. The Tax Administrator, from time to Ume, may survey the electric service suppliers to identify the various unbundled billing components of electric nebni| service that they commonly provide to residential and commercial/industrial customers in the City, and the charges tMonafor, including those items that are mandated by State nrFederal regulatory agencies eaacondition of providing such electric service. The Tax Administrator. U)enaaOer, may issue and disseminate to such electric service providers an administrative ruling identifying those components and items which are: (i) necessary or common to the receipt, use or enjoyment of electric service; or. (ii) ounendy, or historically have baan, included in a single or bundled rate for electric service by a local distribution company to a o|amm of retail customers. Unbundled charges for such components and items shall be subject to the tax of paragraph a.above. a. An used in this subsection, the term "using electricity" shall not be construed to include the mere receiving of such electricity by an electric public utility Vrgovernmental agency at o point within the City for resale, or the use of such energy in the production or distribution of water by a public utility or governmental agency. t The tax on electricity pnnvidedbyse|f-pnoduutionorbyanon'uU!ity service supplier not under the jurisdiction wf this Chapter 4.5O shall bacollected and remitted in the manner set forth in subsection 4.GO.35hereof. All other taxes on charges for electricity imposed by this subsection oho|| be collected from the service user by the electric aemioa supplier or its billing agent. The amount of tax collected in 1 month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before 20th day of the following month; or, at the option of the person required to collect and/or remit the bax, such person shall remit an estimated amount oftax measured by the tax billed in the previous month or upon the payment pattern of the service user, vxh|uh must be received by the Tax Administrator un or before the 20th day of following month, provided that the service user shall submit an adjusted payment or request for credit, as appropriate, within 68 days following each calendar quarter. The credit, if approved by the Tax Administnator, may be applied against any subsequent tax bill that becomes due. §4L60'030Gas Users Tax. o. There iV imposed a tax upon every person using gas in the City of Seal Beach which is delivered through a pipeline distribution system or by mobile transport. The tax imposed by this Section shall be at the rate of 1096 of the charges made for such Qoa, including all services related to the stonaQa, transportation and delivery ofsuch goo. The tax shall be collected from the service user by the service supplier or non-utility service aupp|ier, or its billing ogent, and shall apply to all uses of gas, including but not limited to, headng, electric generation by a non-public utility, and the use of gas as a component of a manufactured product. b� As used in this subsection, the term "charges" shall apply to all oervimaa, components and items for gas service that are: i) necessary or common to the remeipt, use and enjoyment ofgas service; or, ii) cunent|y, or historically have been, included in o single or bundled rate for gas service by 8 Ordinance Number 1642 local distribution company to a class of retail customers. The term ^uhomeo^ shall include, but im not limited to,the following charges: 1. The commodity charges for purchased gas, or the cost of gas owned by the service user (including the actual costs attributed to dh||\nQ. pmducL|nn. UfUng, storage, gedhehnQ, trunkUne, pipeline, and other operating costs associated with the production and delivery of such gas),which is delivered through a gas pipeline distribution system; 2. Gas transportation charges (including interstate charges to the extent not included in commodity chmqJeu); 3. Storage charges; provided, howevar, that the service provider shall not be required to apply the tax to any charges for gas storage services when the service providers cannot, as practical matter, determine the jurisdiction where such stored gas is ultimately used; but it shall be the obligation of the service user to self-collect the amount of tax not applied to any charge for gam storage by the service supplier and to remit the tax to the appropriate jurisdiction; 4. Capacity or demand charges, (oba oharQem, service establishment or nascdaW|ohment charges, marketing ohargem, administrative chorgam, transition cha|Qam, customer charges, minimum nhnrgem, annual and monthly nhargeo, and any other charges which are necessary orcommon to the renmipt, use and enjoyment of gas service; and. 8. Chorges, feeo, or surcharges for gas maminem or programs, which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory Cnmmissiuo, whether or not such oharges, fmms, or surcharges appear on a bundled or line item basis on the customer billing, or whether they are imposed on the service provider or the customer. C. As used in this subsection, the term "nhmrQam^ mhoU include the value of any other semices, credits, property of every kind or natuna, or other consideration provided by the service user in exchange for the gas or services related io the delivery nf such gas. d. The Tax Administrator, from time to Ume, may survey the Boo service suppliers to identify the various unbundled billing components ufgas retail service that they commonly provide to residential and oommenciaKinduotho| customers in the City, and the charges therefor, including those items that are mandated by State orFederal regulatory agencies as a condition ofproviding such gas service. The Tax Administrator, thereafter, may issue and disseminate to such gam service suppliers an administrative ruling identifying those components and items which are: (i) necessary common to th receipt, use or enjoyment of gas service; or. (ii)uumant|y, or historically have bean, included in m single or bundled rate for gas service by a local distribution company toe class wf retail customers. Charges for such components and items shall be subject tmthe tax of paragraph a.above. e. There shall be excluded from the base on which the tax imposed by this Section is computed charges made for gas sold for use in the generation of electrical energy or for the production or distribution of water by a public utility or government agency; and charges made by gas public utility for gas used and consumed in the conduct of the business of gas public utilities. f. The tax on gas provided by self-production or by a non-utility oemioo supplier not under the jurisdiction of this Chapter 4.50 oheU be collected and remitted in the manner set forth in subsection 4.50.035 hereof. All other taxes on charges for gas imposed by this subsection shall be collected from the service user by the gas oenima supplier mrits billing agent. The amount of tax collected in one (1) month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the 20th day of the following 9 Ordinance Number 1842 month; or, at the option of the person required to collect and/or remit the tax, such person shall remit an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the service user, which must be received by the Tax Administrator on or before the 20th day of the fVUuxvinQ month, provided that the aemium user mho|| submit an adjusted payment or request for credit, as appropriate, within 60 days following each calendar quarter. The credit, if approved by the Tax Administrator, may be applied against any subsequent tax bill that becomes due. §4.50.036 Collection «fTax From Service Users Receiving Direct Purchase of Gas or Electricity. e. Any service user subject to the tax imposed by subsections 4.5O.U25mr4.5O.U30hereof, which produces gas or electricity for aeK'uae; which receives gas urelectricity, including any related supplemental oenvioeo, directly from a non-utility service supplier not under the jurisdiction of this Chapter 4.50; or which,for any other reason, is not having the full tax collected and remitted by its service supplier, a non-utility service supplier, ar its billing agent un the use of gas orelectricity in the City, including any na|abad supplemental oemioea, ehoU report said fact to the Tax Administrator and shall remit the tax due directly buthe Tax Administrator within 30 days of such use. In lieu of paying said actual tax. the service user may. at its opUmn, remit to the Tax Administrator within 30 days for such use an estimated amount of tax measured by the tax billed in the previous month, or upon the payment patter of similar customers of the service supplier using similar amounts of gas or electricity, provided that the service user mheU submit an adjusted payment or request for credit, as approphate, within 60 days following each calendar quarter. The credit, if approved by the Tax Administrator, may be applied against any subsequent tax bill that becomes due. b. The Tax Administrator may require said service user to identify its nonud|ih/ service supplier and pnuvide, subject to oudit, invoioeo, books of acoount, or other satisfactory evidence documenting the quantity of gas or electricity uaed, including any na|ahmd supplemental morvices, and the cost or price thereof. If the service user is unable to provide such satisfactory evidence, or, if the administrative cost of oo|ou|obng the tax in the opinion of the Tax Administrator is excessive, the Tax Administrator may determine the tax by applying the tax omba to the equivalent charges the service user would have incurred if the gas or electricity uoed, including any na|abad supplemental services, had been provided by the service supplier that io the primary supplier of gas or electricity within the City. Rate schedules for this purpose shall be available from the City. §uk5o.q40 Effect nf Commingling Taxable Items with Nontaxable Items. If any nontaxable charges are combined with and not separately stated from taxable service charges on the customer bill or invoice ofa service supplier, the combined charge is subject totax unless the service supplier identifimo. by reasonable and verifiable otandonda, the portions of the combined charge that are nontaxable and bexob|a through the service suppliers books and records kept in the regular course of business, and in accordance with generally accepted accounting phnnip|em, and not created and maintained for tax purposes. |f the service supplier offers m combination of taxable and non-taxable semioes, and the charges are separately mrabad, then for taxation purpoeaa, the values assigned the taxable and non-taxable services shall be based on its books and records kept in the regular course of business and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. The service supplier has the burden of proving the proper valuation and apportionment of taxable and non-taxable charges. �4.60'046 Substantial Nexus/Minimum Contacts. For purposes mf imposing a tax orestablishing a duty bo collect and remit o tax under this Article, "substantial nexus", "substantial economic presence", and 10 Ordinance Number 1G42 �ninimum contacts' shall be construed broadly in favor of the impVmition, collection and/or remittance of the utility users' tax to the fullest extent permitted by State and Federal )aw, and as it may change from time to time by judicial interpretation or by statutory enactment. Any telecommunication service (including Vo|P) used by o person with o uemioa address in the Cbv, which service is capable of terminating o call to another person on the general telephone network, shall ba subject huo rebuttable presumption that"Substantial nexus/minimum contacts"exists for purposes of imposing a tax, or establishing a duty to collect and nm8lit a tax, under this Artida. A service supplier shall be deemed to have sufficient activity in the City for tax collection and remittance purposes if its activities ino|ude, but are not limited ho, any of the following: maintains or has within the City, directly or through on ogent, affiliate or oubsidiory, a place ofbusiness of any osduno; mo|/cjtm business in the City by employees, independent nontroubonm, romeUere, egenta, affiliates or other representatives; solicits business in the City on o ownUnuoua, regular, seasonal or systematic basis by means of advertising that is broadcast or relayed from 4 transmitter with the City or distributed from a location with the City; or advertises in newspapers or other periodicals printed and published within the City or through mahsho|m distributed in the City means other than the United 8bsbes mail; or if there are activities performed in the City on behalf of the service supplier that are significantly associated with the service supplier's ability to establish and maintain a market in the City for the provision of utility services that are mub]aoL to m tax under this Article (e.g.' an affiliated person engaging in activities in the City that inure to the benefit of the service supplier in its development or maintenance Vfa market for its services in the Cib/). §4.80.080 Duty tmCollect; Procedures. m. Collection bySomico Suppliers. The duty ofsamicenupp|\emto collect and remit the taxes imposed by the provisions of this Chapter 4.50 shall be performed aofollows: 1. The tax shall be collected by service suppliers insofar as practicable at the same time oa' and along w\th, the collection of the charges made in accordance with the regular billing practice of the service supplier. Where the amount paid by a service user to a service supplier is less than the full amount of the charge and tax which was accrued for the billing pehod, a proportionate share of both the charge and the tax shall be deemed to have been paid, In those cases where a service user has notified the aewima supplier of refusal to pay the tax imposed on said charges, subsection 4.50.065 shall apply. 2. The duty of a aemioa supplier to collect the tax from a service user ahoU commence with the beginning of the first regular billing period applicable to the service user where all charges U included i uoh regular billing are subject hothe provisions of this Chapter. Where a person receives more than one b/Uing, one or more being for different periods than another, the duty bn collect shall arise separately for each billing period. b. Filing Return and Payment Each person required by this Chapter to remit a tax mhoU file a return to the Tax Administrator, on forms approved by the Tax Administratur, on or before the due date. The full amount of the tax collected ohoU be included with the return and filed with the Tax Administrator. The Tax Administrator ie authorized to require such additional information as he or she deems necessary to determine if the tax is being |gvied, collected, and remitted in accordance with this Chapter. Returns are due immediately upon cessation of business for any reason. Pursuant to Revenue and Tax Code Section 7284.6, the Tax Administrator, and its agents, shall maintain such filing returns as confidential information that is exempt from the diao|nyuna provisions of the Public Records Act. 11 Ordinance Number 1642 §4.50.055 Collection Penalties; Service Suppliers or Self-Collectors. a. Taxes collected from a service user, or owed by a service user subject to subsection 4.50.035 hereof, are delinquent if not received by the Tax Administrator on or before the due date. Should the due date occur on a weekend or legal holiday, the return must be received by the Tax Administrator on the first regular working day following the weekend or legal holiday. A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by a service supplier in satisfaction of its obligations under this subsection shall be considered timely if the transfer is initiated on or before the due date, and the transfer settles into the City's account on the following business day. b. If the person required to collect and/or remit the utility users' tax fails to collect the tax (by failing to properly assess the tax on one or more services or charges on the customer's billing) or fails to remit the tax collected on or before the due date, or, in the case of a service user that fails to properly self- collect and remit the tax under subsection 4.50.035 hereof on or before the due date, the Tax Administrator shall attach a penalty for such delinquencies or deficiencies at the rate of 15% of the total tax that is delinquent or deficient in the remittance, and shall pay interest at the rate of and 0.75% per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first become delinquent, until paid. C. The Tax Administrator shall have the power to impose additional penalties upon persons required to collect and remit taxes pursuant to the provisions of this Chapter 4.50 for fraud or gross negligence in reporting or remitting at the rate of 15% of the amount of the tax collected and/or required to be remitted, or as recomputed by the Tax Administrator. d. For collection purposes only, every penalty imposed and such interest that is accrued under the provisions of this Section shall become a part of the tax herein required to be paid. e. Notwithstanding the foregoing, the Tax Administrator may, in his or her discretion, modify the due dates and/or penalty and interest provisions of this Section to be consistent with any uniform standards or procedures that are mutually agreed upon by UUT public agencies, or otherwise legally established, to create a UUT central payment location or mechanism. § 4.50.060 Deficiency Determination and Assessment; Tax Application Errors. a. The Tax Administrator shall make a deficiency determination if he or she determines that any person required to pay or collect taxes pursuant to the provisions of this Chapter 4.50 has failed to pay, collect, and/or remit the proper amount of tax by improperly or failing to apply the tax to one or more taxable services or charges. Nothing herein shall require that the Tax Administrator institute proceedings under this Section if, in the opinion of the Tax Administrator, the cost of collection or enforcement likely outweighs the tax benefit. b. The Tax Administrator shall mail a notice of such deficiency determination to the person required to pay or remit the tax, which notice shall refer briefly to the amount of the taxes owed, plus interest at the rate of 0.75% per month, or any fraction thereof, on the amount of the tax from the date on which the tax should have been received by the City. Within 14 calendar days after the date of service of such notice, the person may request in writing to the Tax Administrator for a hearing on the matter. C. If the person fails to request a hearing within the prescribed time period, the amount of the deficiency determination shall become a final assessment, and shall immediately be due and owing to the City. If the person 12 Ordinance Number 1G42 requests a hearing, the Tax Administrator shall cause the matter to be set for hearing, which shall be scheduled within 30 days after receipt of the written request for hearing. Notice nf the time and place of the hearing shall bemailed by the Tax Administrator to such person at least 18 calendar days prior to the heohng, and, if the Tax Administrator desires said person to produce specific records at such hearing, such notice may designate the records requested to be produced. d. At the time fixed for the hearing, the Tax Administrator shall hear all relevant testimony and evidence, including that of any other interested parties. At the discretion of the Tax Administrator, the hearing may be continued from time ho time for the purpose nfallowing the presentation of additional evidence, Within a reasonable time following the conclusion of the hearing' the Tax Administrator shall issue a final assessment (or non-assessment), thereafter, by confinning, modifying or rejecting the original deficiency determination, and shall mail a copy of such final assessment to person owing the tax. The decision of the Tax Administrator may be appealed pursuant bDsubsection 4.50.090. Filing an application with the Tax Administrator and appeal tm the City Administrator, or designee, pursuant to subsection 4.50.090 is a prerequisite to a suit thereon. e. Payment of the final assessment shall become delinquent if not received by the Tax Administrator on or before the 30th day following the date of receipt of the notice of final assessment. The penalty for delinquency shall be 1596 on the total amount of the onssmamunt, along with interest at the rate of O.7596 per month, or any fraction thereof, on the amount ofthe tax, exclusive of penolties, from the date of de|inquency. Und| paid. The applicable statute of limitations regarding a claim by the City seeking payment of a tax assessed under this Chapter shall commence from the date of delinquency ms provided \n this subsection(e). [ All nodmyo under this Section 4.58 may be sent by regular mai|, postage pnepaid, and shall be deemed received on the third calendar day following the date nf mailing, es established bya proof ofmailing. §4.60.085 Administrative Remedy; Non-paying Service Users. e. Whenever the Tax Administrator determines that a service user has deliberately withheld the amount of the tax owed by the service user from the amounts remitted to m person required to collect the tax, nr whenever the Tax Administrator deems it in the best interest of the City, he or she may relieve such person of the obligation tocollect the taxes due under this Section certain named service users for specific billing periods. Whenever the service user has failed bo pay the amount of tax owed for a period of two (2) or more billing periods, the service supplier shall be relieved of the obligation to collect taxes due. The mamioe supplier ahoU provide the City with the names and addresses of such service users and the amounts of taxes owed under the provisions cf this Section 4.50.065. Nothing herein shall require that the Tax Administrator institute proceedings under this Section 4.50.085 if, in the opinion of the Tax Adminimtrator, the cost of ucd|aot\on or enforcement likely outweighs the tax benefit. b. |n addition to the tax owed,the service user shall pay adelinquency penalty at the rate of 1596 of the total tax that is owad, and shall pay interest at the rate of three-quarters of one percent (3/4Y6) per m#nth, or any fraction thenaof, on the amount of the tax, exclusive of penalties, from the due date, until paid. C. The Tax Administrator shall notify the nonpaying sen/ceumerthct the Tax Administrator has assumed the responsibility toco||ectthetoxemdue for the stated periods and demand payment of such taxes, including penalties and interest. The notice shall be served on the service user by ponmono| delivery or deposit by of the nudoa in the United States mai|, postage prepaid, addressed to the service user at the address to which billing was made by the person required 13 Ordinance Number 1642 to collect the tax; or, should the service user have a change of address, to his or her last known address. d. If the service user fails to remit the tax to the Tax Administrator within 30 days from the date of the service of the notice upon him or her, the Tax Administrator may impose an additional penalty of 15% of the amount of the total tax that is owed. §4.50.070 Actions to Collect. Any tax required to be paid by a service user under the provisions of this Chapter 4.50 shall be deemed a debt owed by the service user to the City. Any such tax collected from a service user which has not been remitted to the Tax Administrator shall be deemed a debt owed to the City by the person required to collect and remit and shall no longer be a debt of the service user. Any person owing money to the City under the provisions of this Chapter 4.50 shall be liable to an action brought in the name of the City for the recovery of such amount, including penalties and interest as provided for in this Chapter 4.50, along with any collection costs incurred by the City of Seal Beach as a result of the person's noncompliance with this Chapter 4.50, including, but not limited to, reasonable attorney's fees. In the event that a service user or service supplier owing a tax under this Chapter 4.50 files bankruptcy, then such debt to the City shall be deemed an unsecured priority excise tax obligation under 11 U.S.C.A. Section 507(a)(8)(C). Service suppliers who seek to collect charges for service in bankruptcy proceedings shall also include in any such claim the amount of taxes due the City for those services, unless the Tax Administrator determines that such duty is in conflict with any federal or state law, rule, or regulation or that such action would be administratively impractical. §4.50.075 Additional Powers and Duties of the Tax Administrator. a. The Tax Administrator shall have the power and duty, and is hereby directed, to enforce each and all of the provisions of this Chapter 4.50. b. The Tax Administrator may adopt administrative rules and regulations consistent with provisions of this Chapter 4.50 for the purpose of interpreting, clarifying, carrying out and enforcing the payment, collection and remittance of the taxes herein imposed. The administrative ruling shall not impose a new tax, revise an existing tax methodology as stated in this Chapter 4.50, or increase an existing tax, except as allowed by California Government Code Section 53750(h)(2). A copy of such administrative rules and regulations shall be on file in the Tax Administrator's office. To the extent that the Tax Administrator determines that the tax imposed under this Chapter 4.50 shall not be collected in full for any period of time from any particular service supplier or service user, that determination shall be considered an exercise of the Tax Administrator's discretion to settle disputes and shall not constitute a change in taxing methodology for purposes of Government Code Section 53750 or otherwise. The Tax Administrator is not authorized to amend the City's methodology for purposes of Government Code Section 53750 and the City does not waive or abrogate its ability to impose the utility users' tax in full as a result of promulgating administrative rulings or entering into agreements. C. Upon a proper showing of good cause, the Tax Administrator may make administrative agreements, with appropriate conditions, to vary from the strict requirements of this Chapter 4.50 and thereby; (1) conform to the billing procedures of a particular service supplier (or service user subject to subsection 4.50.035 hereof) so long as said agreements result in the collection of the tax in conformance with the general purpose and scope of this Chapter 4.50; or, (2) to avoid a hardship where the administrative costs of collection and remittance greatly outweigh the tax benefit. A copy of each such agreement shall be on file in the Tax Administrator's office, and are voidable by the Tax Administrator or the City of Seal Beach at any time. 14 Ordinance Number 1G42 d. The Tax Administrator may conduct an audit, to ensure proper compliance with the requirements Vf this Chapter 4.9U. of any person required b7 collect and/or remit a tax pursuant to this Chapter 4.50. The Tax Administrator shall notify said person of the initiation of an audit in vvhdnQ. In the absence of fraud or other intentional misconduct, the audit period or review shall not exceed a period of3 years next preceding the date of receipt Vfthe written notice bysaid person from the Tax Administrator. Upon completion of the audit, the Tax Administrator may make o deficiency determination pursuant to subsection 4.50.060 for all taxes (and applicable penalties and interest) owed and not paid, as evidenced by information provided by such person to the Tax Administrator If said person is unable or unwilling to provide sufficient records to enable the Tax Administrator to verify compliance with this Chapter 4.50. the Tax Administrator im authorized to make o reasonable estimate of the definien:y. Said reasonable estimate shall be entitled uzbea rebuttable presumption ofcorrectness. e. Upon receipt ofa written request ofa taxpayer, and for good cause, the Tax Administrator may extend the time for filing any statement required pursuant to this Chapter 4.50 for a period of not to exceed 45 days, provided that the time for filing the required statement has not already passed when the request imreceived. No penalty for delinquent payment shall accrue by reason uf such extension. Interest shall accrue during said extension at the rote of 0,75% per month, prorated for any portion thereof. t The Tax Administrator ahe|| determine the eligibility of any person who asserts a right to exemption from, or refund of, the tax imposed by this Chapter 4.50. g. The Tex Administrator, with the written approval of the City yNanager, may compromise m claim pursuant to this Chapter 4.50 xvhane the portion of the claim proposed to be released is equal to or less than $4.909 dollars; and,with the approval uf the City Council, may compromise such aclaim where the portion proposed h»be released 1a greater than$4.QQQdollars. h. Notwithstanding any provision in this Chapter 4.5Obothe onntnary, the Tax Administrator may waive any penalty orinterest imposed upon a person required to collect and/or remit for failure to collect the tax imposed by this Chapter 4.5Uif the non-collection occurred in good faith. |n determining whether the non-collection was in good faith, the Tex Administrator shall take into consideration the uniqueness of the product or service, industry practice or other pmauedence, or whether the person offers buvoluntarily disclose its tax liability. The Tax Administrator may also participate with other uh|ib/ users' tax public agencies in conducting coordinated compliance reviews with the goal of achieving administrative efficiency and uniform tax application determinoUons, xvhena p000ib/e. To encourage full disclosure and on-going cooperation on annual compliance reviews, the Tax Administrator, and its agents, may enter into agreements with thetox'uoUm±in0 service providers and grant prospective only effect on any changes regarding the taxation of services or charges that were previously deemed by the eenhom provider, in good faith and without gross negligence, to be non-taxable. In determining whether the non-collection was in good faith and without gross negligence, the Tax Administrator mhsd| take into consideration the uniqueness of the product or service, industry practice or other precedence. §4.50.080 Records. o. It shall be the duty of every person required to collect and/or remit to the City any tax imposed by this Chapter 4.50tu keep and prememe, for period of at least 3 yemra, all records as may be necessary to determine the amount of such tax that such person may have been liable for the collection of and remittance to the Tax Administrator, which records the Tax Administrator shall have the right to inspect;t a reasonable time. 15 Ordinance Number 1842 b. The Tax Administrator may issue an administrative subpoena to compel a person to deliver, to the Tax Administrator, copies of all records deemed necessary by the Tax Administrator to establish compliance with this Chapter 4.50, including the delivery of records in a common electronic format on readily available media if such records are kept electronically by the person in the usual and ordinary course of business. As an alternative to delivering the subpoenaed records hmthe Tax Administrator onor before the due date provided in the administrative subpoena, such person may provide access to such records outside the City on or before the due date, provided that such person shall reimburse the City for all reasonable travel expenses incurred by the City to inspect those reoordm, including travel, lodging, meo|e, and other similar expenaeo, but excluding the normal salary or hourly wages of those persons designated by the City to conduct the inspection. C. The Tax Administrator is authorized to execute m nondisclosure agreement approved by the City Attorney to protect the confidentiality of customer information pursuant to California Revenue and Tax Code Sections 7284.G and 7284.7. The Tax Administrator may request from w person providing transportation or distribution services of gas or electricity tosen/iueuoanevvithin the City, a list of the names, billing and service addresses, quantities of gas or electricity de||vared, and other pertinent infonnation, of its transportation customers within the City pursuant to Section 6354(e) of the California Public Utilities Code. d. |fa service supplier uses obilling agent or billing aggregator hobill, udlect, and/or remit the tax, the aenioa supplier shall: (1) provide bo the Tax Administrator the name,address and telephone number of each billing agent and billing aggregator currently authorized by the oan/ioe supplier to bi||, coUed, and/or remit the tax to the City; and. CQ upon request of the Tax Administrator, deliver, or effect the delivery of, any information or records inthe possession of such billing agent or billing aggregator thmk, in the opinion of the Tax Administrator, is necessary to verify the proper application, calculation, collection and/or remittance of such tax to the City. e. If any person subject to record-keeping under this Chapter 450 unreasonably denies the Tax Adminiotnator, or the Tax Administrator's designated nepnasentaUxm, access to such recnrdo, or fails to produce the information requested in an administrative subpoena within the time specified, the Tax Administrator may impose a penalty of$50O.DO dollars on such person for each day following: i) the initial date that the person refuses toprovide such access; or, ii) the due date for production of records as mat forth in the administrative subpoena. This penalty shall be in addition toany other penalty imposed under this Chapter 4.58. �4.50.086 Refunds/Credits. Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Tax Administrator under this Chapter 4.50, it may be refunded or credited as provided in this Section: a. The Tax Administrator may refund any tax that has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Tax Administrator under this Chapter 4.50, provided that no refund shall be paid under the provisions of this Section unless the claimant or his or her guardian, conservator, executor, or administrator has submitted a written claim to the Tax Administrator within 1 year of the overpayment or erroneous or illegal collection of said tax. Such claim must clearly establish claimant's right to the refund by written records showing entitlement thereto. Nothing herein shall permit the filing ofe claim on behalf ofo class or group of taxpayers unless each member of the class has submitted a written u|e|m under penalty of perjury as provided by this Section. 16 Ordinance Number 1642 b. The submission ufa written claim, which is acted upon bythe City Council, shall be a prerequisite to m suit thereon. (See California Government Code Section S3S). The Tax Administrator,orthe City Council where the claim i* in excess of$4,999 dollars shall act upon the refund claim within the time period set forth in Government Code Section 912.4. !f the City Council fails o| refuses to act on a refund claim within the time prescribed by Government Section 912.4. the claim shall be deemed to have been rejected by the City Council on the last day of the period within which the City Council was required tn act upon the claim as provided in Government Code Section 912.4. The Tax Administrator shall give notice of the action in a fnnn which substantially complies with that set forth in Government Code Section G13. C. Notwithstanding the notice provisions of subsection (a) of this Section, the Tax Administrator may, at his or her disurmUon, give written permission hoa service supplier, who has collected and remitted any amount uf tax in excess of the amount of tax imposed by this Chapter 4.50, to claim credit for such overpayment against the amount of tax which is due the City upon a subsequent monthly return(s) to the Tax Administrator, provided Ulet, prior to taking such credit by the service supplier: 1) such credit is claimed in a return dated no later than one year from the date of overpayment or ennnauue collection of said tax; 3) the Tax Administrator is satisfied that the underlying basis and amount ofsuch credit has been reasonably established; and. 3) in the case of an overpayment by a service user to the service supplier that has been remitted to the Qb/. the Tax Administrator has received pnnof, to his or her uatimhaction, that the overpayment has been refunded by the service supplier bo the service user inan amount equal bn the requested credit. §4'80.090 Appeals. e. The provisions of this Section apply in any decision (other than a decision relating to a refund pursuant to Section 4.50.085), deficiency dft*nninotion, asnamsment, or administrative ruling of the Tax Administrator. Any person aggrieved by any decision (other than a decision relating to a refund pursuant to Section 4.50.085 hereof)i, deficiency determination, omoeasment, or administrative ruling of the Tax Admin|atrab)r, shall be required to comply with the appeals procedure ofthis Section. Compliance with this Section shall be o prerequisite too suit thereon. (See Government Code Section 835(b).) Nothing herein shall permit the filing ofo claim or action on behalf ufa class or group of taxpayers. b. If any person is aggrieved by any decision (other than a decision relating to a refund pursuant to subsection 4.50.085 heneof)i, deficiency determination, assessment, or administrative ruling of the Tax Administrator; he or she may appeal to the City Manager by filing a notice of appeal with the City Clerk within 14 days of the dote of the decision, deficiency datennination, ossemament, or administrative ruling of the Tax Administrator which aggrieved the service user or service supplier. C. The matter shall be scheduled for hearing before an independent hearing officer selected by the City Manager, or designee, no more than 30 days from the receipt of the appeal. The appellant oMa|| be served with ncdioa of the time and place of the haaring, as well as any relevant materials, at least 5 calendar days prior to the hearing, The hearing may be continued from time tm time upon mutual consent, 4d the time of the heoMng, the appealing party. the Tax Administrator, the City &1anaQer, and any other interested person may present such relevant evidence as he or she may have relating to the determination from which the appeal istaken. d. Based upon the submission of such evidence and the review ofthe City's files, the City Manager shall issue ewritten notice and order uphoiding, modifying nr reversing the determination from which the appeal is taken. The notice shall be given within 14 days after the conclusion of the hearing and shall state the reasons for the decision. The notice mhnU specify that the decision is 17 Ordinance Number l642 final and that any petition for judicial review shall befiled within 90 days from the date of the decision inaccordance with Code of Civil Procedure Section 1O948. e. All notices under this Section may be sent by regular mail, postage pnepa|d, and shall be deemed received Vn the third calendar day following the date Vf mailing, as established byo proof cfmailing. §4.G8.$9SNo Injunction/Writ qfMandate. No injunction or writ of mandate or other legal or equitable process shall issue in any ouit, edion, or proceeding in any court against this City or against any officer of the City to prevent or enjoin the collection under this Chapter 4.50 of any tax or any amount wf tax required tVbo collected and/or remitted. §4L60'100 Remedies Cumulative. All remedies and pemmbiau prescribed by this Chapter 4.50 or which are available under any other provision of |avv or equity, including but not limited to the California False Claims Act (Government Code Section 12650 etseq.) and the California Unfair Practices Act (Business and Professions Code Section 17070 at aaqj, are cumulative. The use of one or more remedies City shall not bar the use of any other remedy for the purpose of enforcing the provisions ofthis Chapter 4.50. �4.50'10S Notice mfChanges to Ordinance. |fatax under this Chapter 4.50 is added, napea|ad, inonuemed, naduced, or the bm base is changed. the Tax Administrator shall follow the notice requirements ofPublic Utilities Code Section 7QQ. �4.50.110 Future Amendment kwCited Statute. Unless specifically provided otherwise, any reference to a State or Federal statute in this Chapter 4.50 shall mean such statute an it may be amended from time to time, provided that such reference to a statute herein ohe|| not include any subsequent amendment thanato, or to any subsequent change of interpretation thereto bya State or Federal agency or court nf law with the duty to interpret such law, hmthe extent that such amendment or change ofinterpretation would require voter approval under California |aw, or to the extent that such change would namu|t in a tax decrease (am a result of excluding all or a pad of utility mamioa` or charge thenehzr, from taxation), Only to the extent voter approval would otherwise be required or a tax decrease would result, the phor version of the statute (or interpretation) shall remain applicable; for any application or situation that would not require voter approval or nomu|i in m decrease nfa tax, provisions o[the amended statute(or new interpretation) shall be applicable tn the maximum possible extent. To the extent that the City's authorization to oo||eoL or impose any tax imposed under this Chapter 4.5Oio expanded or limited as a result nf changes in State or Federal |aw, no amendment or modification of this Chapter 4.50 shall be required to conform the tax to those uhongea, and the tax shall be imposed and collected to the full extent of the authorization up to the full amount of the tax imposed under this Chapter 4.50. 04'60,115 Penalties. Any person violating any of the provisions of this Chapter 4.50 shall be deemed guilty of a misdemeanor, or an infraction at the discretion of the City. § 4.60.120 Anmmm1 Rate Review and Independent Audit of Tax Collection, Exemption, Remittance and Expenditure. The rates set forth in this chapter shall be reviewed by the City Council on an annual basis at a regularly scheduled meeting in conjunction with the adoption 18 Ordinance Number 1642 of the budget. The City shall annually verify that the taxes owed under this Section have been properly appied, exemphsd, mdlented, and remitted in accordance with this SenUon, and properly expended according to applicable municipal law. The annual verification shall be padhnnad by a qualified independent third party and the review shall employ neammnob|e, cost-effective steps to assure compliance, including the use of sampling audits. The verification shall not be required of tax remitters where the cost of the verification may exceed the tax revenues hubereviewed. 26 No Increase in Tax Percentage or Change in NAethmdm|mQy Without Voter Approval;Amendment mrRepeal. This Chapter 4.50 may be repealed or amended by the City Council without a vote of the People. However, as required by Chapter X|I|C of the California Conotitudon, voter approval is required for any amendment provision that would increase the rate of any tux levied pursuant to this Omdinanoe, provided hmwaver, the following actions shall not constitute an increase of the rate ofa tax: a. The restoration of the rate of the tax tVa rate that ianu higher than that set by this Ordinance, ifthe City Council has acted to reduce the rate ofthe tax; b An action that interprets or clarifies the methodology of the tax, any definition applicable xothe zax, so long as such interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Ordinance; C. The establishment n|moo of persons that in exempt or excepted from the tax orthe discontinuation of any such exemption or exception (other than the discontinuation of an exemption or exception specifically set forth in this Ordinance); and d. The collection of the tax imposed by this ordinance, even if the City had,for some period of time,failed bm collect the bax^ Section 2. Interaction with Prior Tax. (a) Collection of Tax by Service Providers. Service providers shall begin hw collect the Lmu imposed by this amended code as soon as feasible after the effective date of this code, but in no event later than permitted by Section 799 of the California Public Utilities Code. (b) Satisfaction of Tax Obligation by Service Users. Prior toApril 1. 2015. any person who pays the tax levied pursuant to this code, as it existed prior to its amendment as provided henain, with respect to any charge form mamioe shall be deemed 0o have satisfied his mr her obligation to pay the tax levied pursuant to this code am amended herein, with respect bm that charge. The intent of this paragraph is to prevent the imposition of multiple taxes upon a single utility h during the transition period from the prior Utility Users Tax code to the amended Utility Users Tax code (which transition period ends April 1. 2015)and to permit service providers or other persons with an obligation toremit the tax hereunder' during that transition pehud, to satisfy their collection obligations by collecting either tax. Section 3. |f any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Chapter 4.50 or any part thereof is for any reason held to be inva|id, un|avWb\ or unconstitutional, such decision, and the decision not to enforce auch, mhoU not affect the validity of the remaining portion of this Chapter 4.5Dor any part thereof. The City Council hereby declares that itwould have passed each section, auboeotion, subdiviaion, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, 19 Ordinance Number 1642 mubeooUona, subdivisiono, paraQraphm, sentences, dauuan or phrases be declared invalid, unlawful nrunconstitutional. Section 4. Effective Date. This ordinance shall be deemed adopted upon the date that the vote is declared by the City Council and shall go into effect 10 days after that date,as provided in Section 9217 of the California Elections Code. Section 5. Ratification of Prior Tax. The voters of the City of Seal Beach hereby ratify and approve the past collection of the Utility Users Tax as imposed by Chapter 4.50 of the Gem| Beach Municipal Code as it existed prior to the effective date cf this Ordinance. Section 6. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published in accordance with the law. PASSED AND ADOPTED by the voters of the City of Seal Beach otanelection held on November 4. 2O14. Mayor Attest: City Clerk 20 RESOLUTION NUMBER 6493 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL REQUESTING THAT THE BOARD OF SUPERVISORS OF THE COUNTY OF ORANGE CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2014 WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO §10403 OF THE ELECTIONS CODE WHEREAS, a General Municipal Election has been called by Ordinance No. 1641,adopted on June 23,2014; WHEREAS, the City Council also desires to submit to the voters at the election ballot measures whether to amend the Seal Beach City Charter to make the city clerk an appointed position and whether to amend the Municipal Code to reduce and modernize the City's utility user taxes; WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the City precincts, polling places, and election officers of the two elections be the same, and that the county election department of the County of Orange canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election. NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows: SECTION 1. That pursuant to the requirements of California Elections Code §10403, the City hereby requests that the Orange County Board of Supervisors consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 4, 2014, for the purposes of electing three Members of the City Council (District 1, District 3, and District 5)for a full four-year term of office and presenting to the voters the measures identified in Section 2. SECTION 2. That the following measures are to appear on the ballot as follows: (Ballot measure designations will be assigned by the County.) Seal Beach City Charter Amendment. Shall the office of city YES_ clerk be appointive? NO Seal Beach UUT ModernizationlTax Reduction Measure. Shall YES_ the City of Seal Beach adopt an ordinance reducing the utility users tax rate; modernizing its ordinance to require equal NO _ treatment of taxpayers regardless of technology,to maintain 9-1-1 response, police officer patrols, firefighter/paramedic staffing, senior/transit programs, sewers/storm drains to prevent toxic pollution from contaminating beaches and coastal waters, and other city services; and requiring low-income senior exemptions, annual audits, local control of funds,and no rate increase without voter approval? SECTION 3. The county election department is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the statewide election. Resolution Number 6493 SECTION 4. The Board of Supervisors is requested to issue instructions to the County election department to take any and all steps necessary for the holding of the consolidated election, SECTION 5. The City of Seal Beach recognizes that additional costs will be incurred by the County by namsun of this consolidation and agrees to reimburse the County for actual costs. SECTION 6. The Council hereby directs the City Clerk tofile a certified copy of this Resolution with the Board of Supervisors and the county election department wf the County nfOrange. SECTION 7. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 2fth_dayof_ July L_2014by the following vote: AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: Mayor ATTEST: City Clerk STATE OF CALIFORNIA COUNTY OFORANGE } 8S CITY OF SEAL BEACH } |. Linde Devims, City Clerk of the City of Seal Beaoh, do hereby certify that the foregoing Number file in the office ofthe City Clerk, passed, approved, and adopted b the Seal Beach City Council ot a regular meeting held on the 28th day of July L_.2O14. City Clerk RESOLUTION NUMBER 6494 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS AND REBUTTALS REGARDING CITY MEASURES, AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF SUCH MEASURES WHEREAS, a General Municipal Election is to be held in the City of Seal Beach, California, on Tuesday, November 4, 2014, at which time there will be submitted to the voters the following measures: (Ballot measure designations will be assigned by the County.) Seal Beach City Charter Amendment Shall the office of city YES clerk be appointive? NO Seal Beach UUT Modernization/Tax Reduction Measure. YES Shall the City of Seal Beach adopt an ordinance reducing the utility users tax rate; modernizing its ordinance to require equal NO treatment of taxpayers regardless of technology, to maintain 9-1-1 response, police officer patrols, firefighter/paramedic staffing, senior/transit programs, sewers/storm drains to prevent toxic pollution from contaminating beaches and coastal waters, and other city services; and requiring low-income senior exemptions, annual audits, local control of funds, and no rate increase without voter approval? NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The City Council authorizes all members of the City Council to file a written argument In Favor of or Against City measure(s) not exceeding 300 words, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Elections Code § 9280 et seq. The arguments may be changed or withdrawn until and including August 7, 2014, the date set by the City Clerk (end of business day) after which no arguments for or against the City measure may be submitted to the City Clerk. The arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by the Form of Statement To Be Filed By Author(s)of Argument. Section 2. If more than one argument in favor of or more than one argument against any measure is submitted to the City Clerk by the date set in Section 1, the City Clerk shall select one of the arguments in favor and one of the arguments against the measure for printing and distribution to the voters. In selecting the argument, the City Clerk shall give preference and priority, in the order named,to the arguments of the following: (a) The City Council, or member or members of the City Council authorized by the City Council. (b) Bona fide associations of citizens. (c) Individual voters who are eligible to vote on the measure. Section 3. Pursuant to Elections Code§9285, after the City Clerk has selected the arguments for and against each measure to be printed and distributed to the Resolution Number 84Q4 voters, the City Clerk shall send copies of the argument infavor of the measure to the authors of the argument against, and copies of the argument against tothe authors of the argument infavor. The authors may prepare and submit rebuttal arguments not exceeding 250 words or may authorize in writing any other person or persons to prepona, submit, or sign the rebuttal argument. A rebuttal argument may not be signed by more than five authors. Rebuttal arguments shall be filed with the City Clerk accompanied by the printed name(e) and signature(s) of the person(s) submitting it, or if submitted on behalf of an organization the name of the orQenization, and the printed name and signature of at least one of its principal offimam not more than 10 days after the final date for filing primary arguments (August 18. 2014). The rebuttal arguments shall be accompanied by the Funn mf Statement To Be Filed ByAuthor(a) of Argument. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut. Any previous resolutions providing for the filing of rebuttal arguments for City measures are hereby repealed to the extent they conflict with this resolution. The provisions of this Section ahuU apply only to the election to be held on November 4.2O14. and shall then expire. Section 4. The City Council hereby directs the City Clerk to transmit a copy of the measures to the City Attorney. The City Attorney shall prepare an impartial analysis of each measure showing the effect of the measure on the existing law and the operation of the measure. The impartial analysis for each measure shall be filed by August 7, 2014, the date set bythe City Clerk for the filing cfprimary arguments and such analysis shall not exceed 5OO words inlength. Section 5. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book nf original Resolutions. PASSED. APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 281h day of July L_2O14by the following vote: AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: Mayor ATTEST: City Clerk STATE QFCALIFORNIA } COUNTY OFORANGE SS CITY OF SEAL BEACH � i. Linda Dswine, City Clerk of the City of Seal Beaoh, do hereby certify that the foregoing resolution is the original copy of Resolution Number 64&4onfile in the office of the City Clerk, passed, approved, and adopted by the Seal Beach City Council atm regular meeting held on the 28th day of July .2O14. City Clerk