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HomeMy WebLinkAbout17 RESOLUTIONS ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF A MEASURE RELATING TO TRANSIENT OCCUPANCY TAXAgenda AGENDA REPORT Reviewed m 1 City Manager Finance Director MEETING DATE: JULY 17, 2018 TO: JEFFREY C. PARKER, CITY MANAGER FROM: CITY ATTORNEY SUBJECT: RESOLUTIONS ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF A MEASURE RELATING TO TRANSIT OCCUPANCY TAX AT THE GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, AND SETTING DEADLINES AND PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING THE CITY INITIATED TRANSIENT OCCUPANCY TAX MEASURE. SUMMARY: To adopt resolutions to submit to the voters in the November election a question related to Transient Occupancy Tax. RECOMMENDATION: A. Adopt Resolution No. 2018-51 ordering the submission to the qualified electors of the City of a measure relating to transient occupancy tax at the general election to be held on Tuesday, November 6, 2018, as called by Resolution No. 18-37, in the form attached as Exhibit 1; and B. Adopt Resolution No. 2018-52 setting deadlines and priorities for filing written arguments regarding the City initiated Transient Occupancy Tax Measure and directing the City Attorney to prepare an impartial analysis, in the form attached as Exhibit 2. FISCAL IMPACT: To consolidate the general municipal election and Transient Occupancy Tax (TOT) measure, it is estimated to add approximately $8,500 to the cost of the already -ordered consolidated election. (The estimated cost of the already -ordered election for two city councilmembers is approximately $40,403 - $51,422, not including the TOT measure.) Should the TOT measure pass, it is estimated that revenues to the City would increase by approximately $570,000 annually. 1327335.1 Agenda Report: Resolutions re TOT Tax July 17, 2018 Page 2 CORRELATION TO THE STRATEGIC PLAN: Approval by the voters of an increased Transient Occupancy Tax payable by visitors to the City during hotel and other short-term stays advances the Strategic Plan Goal C to "Sustain long-term financial strength with adequate reserves and enhanced capacity to provide a sustainable level of City services," and is consistent with the Strategic Plan strategy C.2. to "Explore opportunities for new or increased revenues." BACKGROUND AND DISCUSSION: The General Municipal Election is scheduled for November 6, 2018. At its July 3, 2018 meeting, the City Council provided direction to proceed with placing a measure on the ballot to increase the "Transient Occupancy Tax" (TOT) rate from 10 percent to 13 percent. (For purposes of the City's TOT ordinance, a "transient" refers to a person who occupies a room in a "hotel" (as defined) for a period of 30 days or less. Thus, it usually applies to non-residents who are visiting the City.) If the proposed measure is approved by the voters, Section 2703 of the Tustin City Code, entitled "Tax Imposed", would be amended to provide: "For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of thirteen percent (13%) of the rent charged by the operator. The tax constitutes a debt owned by the transient to the City which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the City Treasurer may require that such tax shall be paid directly to the City Treasurer." The attached Resolutions adhere to the requirements set forth in the Election Code for the November 6, 2018 General Municipal Elections and are summarized below: Ordering the submission to the voters of a measure relating to transit occupancy tax at the November 6, 2018 General election. The Resolution included in Attachment 1 would order the TOT measure to be added to the election already called on November 6, 2018. The Resolution includes the proposed ballot measure text, and the vote requirement for measure passage (in this case, 50 percent+1 vote). 2. Deadline for Written Arguments Related to the TOT Measure. The Resolution included in Attachment 2 establishes the deadline for written arguments in favor of and against the proposed TOT measure, establishes the order of priority for the selection of written arguments in the event the City Clerk receives more than one, and directs the City Attomey to draft an impartial analysis of the proposed measure. The proposed resolution authorizes Mayor Murray and Mayor Pro Tem Gomez to file a single written argument not 1327335,1 Agenda Report: Resolutions re TOT Tax July 17, 2018 Page 3 exceeding 300 words in favor of the measure, but the limit can be modified based on direction from the City Council. The Resolution establishes that written arguments in favor of and against the measure and the City Attorney's impartial analysis are due to the City Clerk on August 6, 2018 by 5:30 p.m. aal' David Kendig co City Attorney Attachments: 1. Resolution No. 2018-51 ordering the submission to the qualified electors of the City of a measure relating to transit occupancy tax at the general election to be held on Tuesday, November 6, 2018, as called by Resolution No. 18-37; and 2. Resolution No. 2018-52 setting deadlines and priorities for filing written arguments regarding the City initiated Transient Occupancy Tax Measure and directing the City Attorney to prepare an impartial analysis. 1327335.1 RESOLUTION NO. 18-51 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF A MEASURE RELATING TO TRANSIENT OCCUPANCY TAX AT THE GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, AS CALLED BY RESOLUTION NO. 18-37 WHEREAS, a General election on Tuesday, November 6, 2018 has been called by Resolution No. 18-37, adopted on May 15, 2018; and WHEREAS, the City Council also desires to submit to the voters at the same election a question relating to the Transient Occupancy Tax (the "Measure"); NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN DOES RESOLVE, DECLARE, DETERMINE AND ORDER 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: Shall the measure to provide police, fire, emergency medical and rescue protection, to prevent fires and power outages, to maintain parks and YES roads, and to provide other local services and improvements in the community by raising the transient occupancy tax (paid by short-term hotel and other guests) from 10% to 13% until ended by voters, providing approximately $570,000 annually, with audits, all funds only for Tustin, be adopted? NO SECTION 2. That the complete text of the measure is attached as Exhibit A. SECTION 3. That the vote requirement for the measure to pass is a majority (50% + 1) be adopted is 50%+1 of the votes cast. SECTION 4. That in all particulars not recited in this Resolution, 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. Resolution No. 18-51 Page 1 of 3 SECTION 6. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. SECTION 7. The City Council authorizes the City Clerk to pay all reasonable and actual election expenses upon presentation of a properly submitted bill. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council held on the 17th day of July, 2018. ELWYN A. MURRAY Mayor ATTEST: ERICA N. RABE, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Rabe, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 18-51 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 17th day of July, 2018, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. RABE, City Clerk Resolution No. 18-51 Page 2 of 3 EXHIBIT A ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, AMENDING SECTION 2703 OF THE TUSTIN CITY CODE TO INCREASE THE TRANSIENT OCCUPANCY TAX WHEREAS, a measure to increase the transient occupancy tax was put before the voters at a general municipal election held on November 6, 2018; and WHEREAS, the measure received the requisite votes for adoption; and NOW, THEREFORE, the people of the City of Tustin do ordain as follows: Section 1. Section 2703 of the Tustin City Code, entitled "Tax Imposed" is amended to provide as follows: "For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of thirteen percent (13%) of the rent charged by the operator. The tax constitutes a debt owned by the transient to the City which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the City Treasurer may require that such tax shall be paid directly to the City Treasurer." Resolution No. 18-51 Page 3 of 3 EXHIBIT 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, SETTING DEADLINES AND PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING THE CITY INITIATED TRANSIENT OCCUPANCY TAX MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS. WHEREAS, pursuant to California Elections Code section 9287, the City Council is given first priority to submit an argument in favor of a proposed City Council initiated measure and to select its member(s) to draft the argument; and WHEREAS, pursuant to Elections Code section 9280, the City Council may direct the City Attorney to prepare an impartial analysis of the measure; and WHEREAS, a pursuant to Resolution No. 2018-51, the City Council ordered submittal to the Tustin voters the following measure (hereafter, the "Measure") at the November 6, 2018 General election: Shall the measure to provide police, fire, emergency medical and rescue protection, to prevent fires and power outages, to maintain parks and YES roads, and to provide other local services and improvements in the community by raising the transient occupancy tax (paid by short-term hotel and other guests) from 10% to 13% until ended by voters, providing approximately $570,000 annually, with audits, all funds only for Tustin, be adopted? NO NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. That pursuant to Elections Code §9282 and §9286, the deadline for submitting direct written arguments in favor of and arguments against (not to exceed 300 words) the Measure to the City Clerk for transmittal to the County Registrar of Voters is hereby set for August 6, 2018, at 5:30 p.m. Subdivision (a) of Elections Code §9285 relating to rebuttal arguments shall not apply. SECTION 2. That the City Council authorizes the member(s) of its body identified below to file a single written argument not exceeding 300 words, including title, in favor of the Measure as specified above, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California. The arguments may be changed or withdrawn Resolution No. 18-52 Page 1 of 3 until and including the date fixed by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk. The authorized members of the City Council are: Mayor Murray Mayor Pro Tem Gomez SECTION 3. That in the event more than one direct argument is submitted in favor of or in opposition to the Measure, pursuant to Elections Code §9287, the order of priority for the City Clerk in selecting the argument shall be: (1) the City Council, or member(s) of the City Council authorized by the City Council to submit the argument in favor; (2) an individual voter or bona fide association of citizens, or combination thereof, who are the bona fide sponsors or proponents of the measure; (3) bona fide association of citizens; and (4) individual voters who are eligible to vote on measure. SECTION 4. That pursuant to Elections Code §9280 the City Clerk is directed to transmit a copy of the Measure to the City Attorney and the City Attorney is hereby directed to prepare an impartial analysis of the Measure (not to exceed 500 words), showing the effect of the Measure on the existing law and the operation of the Measure, and shall submit such analysis to the City Clerk for transmittal to the County Registrar of Voters by August 6, 2018. ELWYN A. MURRAY Mayor ATTEST: ERICA N. RABE, City Clerk Resolution No. 18-51 Page 2 of 3 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Rabe, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 18-52 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 17th day of July, 2018, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. RABE, City Clerk Resolution No. 18-52 Page 3 of 3