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HomeMy WebLinkAboutCC AG PKT 2005-10-24 #T 6 537 City of Seal Beach Agenda Report Date: October 24, 2005 To: Honorable Mayor and City Council From: John B. Bahors City Manager Subject: Transient Occupancy Tax Ballot Measure SUMMARY OF REQUEST: The Ad Hoc Street and Storm Drain Committee submitted a report to the City Council on the condition of the streets and storm drains within the City and financing scenarios to increase the level infrastructure improvements. If approved by City Council, the attached resolution will place a ballot measure on the March 2006 election to increase the Transient Occupancy Tax from 9% to 12 %. BACKGROUND: The Ad Hoc Street and Storm Drain Committee labored for numerous months attempting to develop a financing package that would help provide funding to undertake street and storm drain upgrades. One of the more modest proposals was to increase the Transient Occupancy Tax from its current rate of 9% to 12 %. This increase would generate an estimated $200,000 per year that could be targeted to make these needed infrastructure repairs. The Ad Hoc Street and Storm Drain Committee believed that the Transient Occupancy Tax along with a combination of other revenue sources could generate sufficient funds to begin a modest improvement program. On August 8, 2005 the Ad Hoc Street and Storm Drain Plan was brought forward to City Council for consideration. The Council voted to direct staff to return with a proposed ballot measure and information on what activities the City could permissibly undertake with regard to ballot measures. Attachment A is the resolution ordering that a proposition to raise the Transient Occupancy Tax be placed on the March 2006 ballot. In addition, Attachment B is the list of permissible activities that the City may engage in with regard to a ballot measure. Placing this measure on the March 2006 ballot will allow the voters of the City to determine whether the rate should be increased from 9% to 12 %. AGENDA ITEM FISCAL IMPACT: There is no fiscal impact related to placing this item on the ballot. RECOMMENDATION: Staff recommends that the City Council approve the resolution ordering the Transient Occupancy Tax be placed on the March 2006 ballot. ATTACHMENTS: A. Resolution No. ordering that a proposition related to the City's Transient Occupancy Tax be submitted to the voters. B. List of permissible and non - permissible activities related to ballot measures. ATTACHMENT A RESOLUTION NUMBER � 3 WI A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH ORDERING THAT A PROPOSITION RELATED TO THE CITY'S TRANSIENT OCCUPANCY TAX BE SUBMITTED TO THE VOTERS AT THE REGULAR MUNICIPAL ELECTION ON MARCH 28, 2006 THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES RESOLVE AND ORDER AS FOLLOWS: Section 1. The City Council has previously called and given notice of the Regular Municipal Election to be held in the City on March 28, 2006, to be conducted by mailed ballot. Section 2. The City Council, pursuant to its right and authority, does hereby order submitted to the voters at such Regular Municipal Election the following proposition: Shall Ordinance Number 1541 which YES NO increases the transient occupancy tax from 9% to 12 %, be adopted? Section 3. The text of the proposed ordinance to be submitted to the voters is attached hereto as Exhibit "A" and incorporated herein by reference. Section 4. The ballots to be used at the election shall be in form and content as required by law. Section 5. The City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed, matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election and is authorized to canvass the returns of the election. Section 6. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. Section 7. Notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. Section 8. The City Clerk shall certify to the passage and adoption of this Resolution and shall enter it into the book of original resolutions. PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach this 24th day of October , 2005 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Mayor ATTEST: City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF SEAL BEACH ) I, Linda Devine, City Clerk of the City of Seal Beach, California, do hereby certify that the foregoing Resolution is the original copy of Resolution Number on file in the office of the City Clerk, passed, approved, and adopted by the City Council of the City of Seal Beach at a meeting thereof held on the 24th day of October , 2005. City Clerk • EXHIBIT A ORDINANCE NUMBER 1541 AN ORDINANCE OF THE CITY OF SEAL BEACH INCREASING THE CITY'S TRANSIENT OCCUPANCY TAX, REVISING THE TRANSIENT OCCUPANCY TAX ORDINANCE AND AMENDING TITLE 4 OF THE SEAL BEACH MUNICIPAL CODE RELATING TO THE TRANSIENT OCCUPANCY TAX THE PEOPLE OF THE CITY OF SEAL BEACH DO ORDAIN AS FOLLOWS: Section 1. Increase of Tax. § 4.35.010 of the Seal Beach Municipal Code is hereby amended to read as follows: "§ 4.35.010 Imposition. A. Rate. For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of 12% of the rent charged by the operator." Section 2. Amendment and Repeal. Notwithstanding California Elections Code Section 9217, without a vote of the people, the Seal Beach City Council may do any of the following: (i) repeal this Ordinance; (ii) reduce the rate of the transient occupancy tax below twelve percent (12 %); (iii) increase the rate of the transient occupancy tax to twelve percent (12 %) if it previously has been reduced below such rate; or (iv) amend the Transient Occupancy Tax Ordinance in any other manner that does not increase the rate of the transient occupancy tax in excess of twelve percent (12 %). In no event shall the Seal Beach City Council increase the rate of the transient occupancy tax in excess of twelve percent (12 %) without approval by a majority of voters voting in an election on the increase. Section 3. Findings and Intent. A. This Ordinance was proposed by the Seal Beach City Council through the adoption of Resolution Number g4 by the affirmative votes of not less than four of its members as required by California Government Code Section 53724(b). B. Section 1 of this Ordinance is intended to increase the transient occupancy tax to a rate of twelve percent (12 %) and thereby authorize future collections of the tax at such rate. Section 4. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance or any part thereof. The people of the City of Seal Beach hereby declare that they would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional. Section 5. Execution. The Mayor is hereby authorized to attest to the adoption of this Ordinance by signing where indicated below. I hereby certify that the foregoing ordinance was PASSED, APPROVED and ADOPTED by the people of the City of Seal Beach voting on the 28th day of March , 2006 Charles Antos, Mayor ATTACHMENT B LIST OF PERMISSIBLE ACTIVITIES The City may: • Draft the ballot measure • Commission a poll to determine whether a measure should be placed on the ballot • Provide impartial information about the measure • Enact a program encouraging voter registration • Spend -funds to encourage voters to register and vote • Distribute impartial materials concerning pending elections • Distribute impartial information concerning the measure • Schedule public hearings for City Council meetings • Adopt a resolution in support of the measure • Formally take a position in support of the measure • Fairly present facts in response to a citizen's request for information • If requested by an organization, authorize employees to present the City's view of a ballot proposal at a meeting of the organization • Spend public funds on purely "informational" materials, provided that the materials give "an accurate, fair, and impartial presentation of relevant facts to aid the voters in reaching an informed judgment regarding the ballot measure" • Prepare materials such as a fact sheet, question and answer sheet, or a newsletter concerning the pending election, provided each of these fairly and accurately describes both sides of the issue LIST OF PROHIBITED ACTIVITIES The City may not spend any public funds to: • Expressly advocate passage of the measure • Urge a particular result in the election in any materials distributed (In the Irvine case, Irvine's "Vote 2000" program did not unambiguously advocate opposing the El Toro airport) • Promote a partisan position • Purchase bumper stickers, posters, radio and television spots, and similar promotional materials • Disseminate campaign literature • Use6ity personnel to promote the campaign employees may not promote passage while on duty) • Require City employees on duty to advocate a position • Pay for advertisements in media sources POTENTIAL LIABILITY As noted in the accompanying memorandum, we must emphasize that whatever course of action the City chooses to take, Councilmembers could potentially face personal liability if a court concluded that they used public funds for a partisan campaign. The Stanson opinion concluded that public officials "may properly be held to a higher standard than simply the avoidance of `fraud, corruption or actual malice' in their handling of public funds." Instead, public officials must exercise 'due care,' i.e., reasonable diligence, in authorizing the expenditure of public funds, and may be subject to personal liability for improper expenditures made in the absence of such due care." If the City were to launch a voter registration campaign that conveyed a partisan slant, a court could conclude that the Councilmembers failed to exercise this due care.