HomeMy WebLinkAboutReso 2016-146 RESOLUTION NO. 2016-I�6
RESOLUTION OF THE CITY COU`NCIL OF THE CITY OF
CHULA VISTA CALLII�'G .A?�'D G[VIt�'G NOTICE OF A
SPECIAL MLTNICIPAL ELECTIOI�' TO BE HELD NOVEMBER
8. 2016 FOR THE PURPOSE OF SUBMITTII`'G TO THE
QUALIFIED ELECTORS OF THE CIT1', A MEASURE
RELATII�'G TO THE ESTABLISH!�4ENT OF A TEMPORARY
ONE-HALF CEI�'T GENERAL TRA?�'SACT[ONS AND USE
(SALES) TAX. CO?�'SOLIDATII�'G THE ELECTION V�'ITH
THE STATEV�%IDE ELECTIOI�; REQUESTR�G THE BOARD
OF SUPERVISORS OF THE COLTi�'TY OF S.4N DIEGO TO
PERI�4IT THE REGISTRAR OF VOTERS TO CO\iDUCT SUCH
ELECTIOI�': AUTHORIZII�'G THE CIT1' CLERlC OR HER
DUL1' AUTHORIZED AGEI�iTS TO CARR1' OUT THE
I�'ECESSARY PROCEDURES FOR SUCH ELECTION:
AUTHORIZII�'G THE A4AYOR TO SUBA4IT BALLOT
ARGUMENTS I� FAVOR OF THE A4EASURE: AND
DIREC7�Ii�TG THE CITY ATTOR1�iEY TO PREPARE A\
IMPARTIAL AlvALYSIS OF THE MEASURE
W'HEREAS, the Citv of Chula Vista (`Cin�`) may impose a local transactions and use ta.x
increase for �eneral purposes �i�ith the approval of the majority of voters in the Cit��; and
l�'HEREAS. the Cin has adopted an ordinance adding Chapter 3.33 to the Chula Vista
Municipal Code, entitled "Temporar�� one-half cent Sales Ta�"(the"O�d'u�ice"):and
�b%HEREAS, Chapter 3.33 of the Chula Vista A4unicipal Code establishes a one-half cent
transactions and use ta� to be administered by the State Board of Equalization (the "Sales Ta�`);
and
�'�'HEREAS, the Ordinance, attached hereto and incorporated herein as Exhibit "A,"
���ould implement the Sales Ta� ��-hich, if approved b�� voters, ���ould take effect no earlier than
April 1: 2017: and
WHEREAS. in accordance �vith the pro��isions of the Chula \'ista Charter and State la���.
a Special Municipal Election shall be held on Tuesda��, No��ember 8. 2016; and
�'�'HEREAS. Section 439.1 of the Administrati��e Code of the Counm of San Dieeo
authorizes the Registrar of Voters of the Counn� of San Dieeo to render specified senices
relating to the conduct of an election to am� cit�� or district that has; bv resolution, requested the
Board of Super��isors to permit the Registrar to render the sen ices. subject to requirements set
forth in that section: and
�
Resolution No. 2016-146
Paee No. 2
WHEREAS; Elections Code Section ]0403 requires the City Council to adopt a
resolution requesting the Boazd of Supen�isors to consolidate Chula Vista's election with the
statewide general election and to permit the Registrar of Voters to perform certain sen�ices in
conjunction with the City s election; and
WHGREAS, the Environmental Review Coordinator has reviewed the proposed activity
for compliance ��ith the Califomia Environmental Quality Act (CEQA) and has determined that
this activity is not a "Project'� as defined under Section ]5378 of the State CEQA Guidelines
because it is a financing decision without commitment to a specific project which may result in a
potentially significant physical impact on the environment therefore, pursuant to Section
15060(c)(3) of the State CEQA Guidelines, the actions proposed are not subject to CEQA; and
WHEREAS; pursuant to Go��ernment Code Section 53724 (to the extent it applies to
charter cities) and California Elections Code Section 9222, the City Council desires to submit the
Ordinance to the electorate at the Specia] Municipal Election to be held on Tuesday, No��ember
8. 2016: and
WHEREAS, it is desirable that the Countv of San Diego Registrar of Voters conduct the
election and canvass the retums of said Special Municipal Election, and thatthe City Clerk
be authorized to carry out all other necessary procedures for such election; and
WHEREAS; the City Council also desires to authorize the Mayor to submit ballot
arguments in favor of the measure.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
as follows:
SECTION 1. All of the foregoing recitals are true and correct.
SECTION 2. Pursuant to the requirements of the Chula Vista Charter and the laws of the
State of Califomia; there shall be and there is hereby called and ordered held in the Citv of Chula
Vista, California, on Tuesday; November 8, 2016, a Special Municipal Election for the purpose
of submitting to the qualified electors of the City a measure imposing a general transactions and
use (sales) taa.
SECTION 3. That the City Council, pursuant to its right and authorih�; does order
submitted to the voters at the Special Municipal Election on November 8, 2016, the following
question:
Resolution ?��o. 2016-146
PaQe No. 3
o repair neighborhood streets and side�valks, replace storm drains
o pre��ent sinkholes, update police, paramedic and 9-1-1 equipment� YES
d facilities. improve parks, repair recreation facilities. and fori
oeneral cit�� sen�ices and infrastructure. shall the Cin� of Chula
�ista adopt an ordinance enactine a temporary '/ cent sales taa�
�eneratins an estimated �16 million per }�eaz. e�pirine in 10 vears�
�ith no further increases �vithout �=oter appro��a1. �;�ith all funds� NO
ta}�ins in Chula Vista, requiring citizen o�ersight and independent
udits? �
SECTION 4. That the proposed Ordinance to be submitted to the ��oters is attached as
Exhibit ".A" and incorporated into this resolution bv this reference.
SECT[ON �. 7hat notice of the time and place of holding the election is given and the
Cit�� Clerk is authorized. instructed. and directed to ai�e funher or additional notice of the
election, in time, form and manner as required b}� la«•.
SECTION 6. Pursuant to California Elections Code Section 9282. the Cit� Council
herebv ackno���ledses its authorit��. and the authorit�� of anv indi�idual voter �tiho is elisible
to ��ote on the measure, or bona fide association of citizens. or an�� combination of voters and
associations. to submit a written azeument. not to e�ceed 300 �aords. for or asainst the
measure. and authorizes the n9a��or to submit areuments in fa�or of the measures�on behalf
of the Citv Council. Arsuments must be submitted to the Citv Clerk. and ma�� be chaneed
until and includine the date fised b�� the Cih� Clerk, afrer �rhich no areuments for or
aaainst the measure ma�� be submitted. ���ithdra���n or chaneed.
SECTIOI�' 7. Pursuant Elections Code section 928�. rebuttal areuments ���ill be allo���ed.
The rebuttal arauments mav not exceed 2�0 urords. Rebuttal arsuments must be submitted to
the Citv Clerk. and mav be chaneed until and includine the date fixed bv the Cit�� Clerk, afrer
which no rebuttal areuments for or a_ainst the proposed measure mav be submitted to the Cih�
Clerk. This Section 8 is applicable onl}� to the I�'ovember 8. 2016 special election called by this
resolution and, after that election_ shall expire.
SECTION 8. Pursuant to Califomia Elections Code Section 9280. the Cim Clerk is
directed to transmit a copy of the measure to the Cit}� Attornev. The Cirv Attornev is directed to
prepaze an impartial anal��sis of the measure; not to esceed �00 �+�ords in leneth, sho���ing the
effect of the measure on the e�istine IaH� and the operation of t h e measure. and transmit
such impartial analvses to the Cit�� Clerk bv the date fixed b��the Cin� Clerk.
SECT[ON 9. Pursuant to Elections Code section 10403: the Board of Supen�isors of the
Counh� of San Diego is hereb�� requested to permit the Reeistrar of Voters to perform and render
all sen�ices and proceedines. and to procure and fumish an�� and all official ballots. notices.
printed matter and all supplies and equipment and paraphernalia incidental to and connected �rith
the conduct of the subject election of the Cit�- of Chula Vista. ��ith the cooperation and assistance
of the City Clerk of Chula Vista. in order to properly and la��-ful1� conduct such election.
Resolution No. 2016-146
Page No. 4
SECTION 10. The Board of Supervisors of the Count}� of San Diego is hereby
requested to consolidate this election with the statewide election to be held on the same da}�, in
the same territor��. Pursuant to Seccion 10411 and Section 10418 of the Elections Code: (a) the
election shall be held in all respects as if there were only one election; (b) only one form of ballot
shall be used; and (c) the Registraz of Voters of the County of San Diego shall canvass the
returns of the subject election as part of the cam�ass of the retums of the election consolidated
herebv.
SECTIOI�' l l. Pursuant to Section ]0410 and Section 10418 of the Elections Code
within the territories affected b�- this consolidation. the election precincts, polling places, voting
booths and polling hours shall, in every case, be the same, and there shall be only one set of
election officers in each of the precincts.
SECTION 12. The Count}� of San Diego shall be reimbursed in full for the services
performed by the Re�istrar of Voters for the Cify of Chula Vista upon presentation of a bill
therefor; and this Cit}� agrees to indemnify and save free and harmless the County; its officers,
agents and employees from expense or liability, including reasonable attorneys' fees, as a result
of an election contest arising from this special election.
SECTION 13. The Ciry Clerk is hereby directed to forthwith file a certified copy of this
resolution with the Board of Supervisors and the Regisirar oi'Voters of the County of San Diego
and to issue instructions to the Registraz of Voters to take any and all steps necessary for the
holding of the election.
SECTION 14. The polls of said election shall be open at seven o'clock a.m. of the day of
said election and shall remain open continuously from that time until eight o'clock p.m. of the
same day when said polls shall be closed, except as provided in Section 14401 of the Elections
Code of the State of California.
SECTION 1�. The ballots to be used at said election shall be, both as to form and matter
contained therein; such as mav be required by law to be used thereat.
SECTION 16. In all particulars not recited in this resolution; said election shall be held
and conducted as provided by IaN�for holding municipal elections in this Cin�.
SECTION 17. Notice of the time and place of holding tl�is election is hereby gi��en and
the City Clerk is hereby authorized, instructed and directed to give such further or additional
notice of said election in time, form and manner as required by law.
SECTION 18. The Cit�� Clerk shall certify to the passage and adoption of this resolution
and file it N�ith the City`s original resolutions.
Resolution No. 2016-146
Pase No. �
Presented b�� Appro�ed as to form b}�
� � \ " [ —�
Garr Ha bert G�en R. Goo�ins
Cit}�D4anager Ci _'Atto ��
PASSED. APPROVED. and .4DOPTED b�� the Cit�� Council of the Cit�� of Chula \'ista.
Califomia. this 12th dav of Jul� 2016 b�� the follo��ine vote:
.41'ES: Councilmembers: A�uilar. Bensoussan. A4iesen. and Salas
NAI'S: Councilmembers: �9cCann
ABSENT: Councilmembers: None
���
�4ar�� las. �9a��or
ATTEST:
�..� '� �
Donna R. Norris. C 9C. Cirv Clerk
STATE OF CALIFORI�IA )
COUI�TTI' OF SAN DIEGO )
CITY OF CHULA V'ISTA )
1. Donna R. Noms. Cin Clerk of Chula Vista. Califomia. do herebv cenifv that the foreeoine
Resolution I�'o. 2016-146 �vas dul�� passed, appro��ed, and adopted by the Cin Council at a
rewlar meeting of the Chula Vista Cit�� Council held on the 12th da�� of Juh� 2016.
Executed this 12th dav of Jul�� 2016.
�, �
Donna R. Norris. Cn9C. Cit�� Clerk
Exhibit .4 Resolution ivo. 2016-146
Paee No. 6
ORDII�'ANCE NO.
ORDI\'.ANCE OF THE CIT1' OF CHULA \%ISTA ADDING
CHAPTER 3.33 TO TITLE 3 OF THE CHLJLA V'ISTA
n4UTTICIPAL CODE TO ESTABLISH A TEn4PORARI' ONE-
HALF CENT GE?�ERAL TRA1�'SACTIONS AND tiSE T.4a TO
BE .AD1�9I1�'ISTERED Bl' THE STATE BOARD OF
EQUALIZAT[ON IivCLUDING PRO\'ISIONS FOR CITIZENS'
OVERSIGHT AI�'D ACCOUT�'T,4BILITl'
�b'HEREAS. numerous Citv facilities. includino streets. storm drains. side��•alks. curbs.
eutters, emergenc�� response equipment and facilities, irrigation s��stems; park and recreation
facilities, and libraries, are in dire need of repair, replacement, upgrading and/or maintenance;
and
�i'HEREAS, the City has conducted significant public outreach to identifi� the most
critical needs and priorities ���ith respect to addressine the Cit��'s infrastrucmre needs, including
forming a �+�orkine eroup composed of City residents. business o���ners, and other stakeholders;
and
��'HEREAS, the public outreach efforts identified certain public priorities with respect to
fixine Cirv facilities, includine: repairing Citv streets, potholes. side���alks: and storm drains;
❑parading agine police. fire: and 9] 1 emereencv response facilities; maintaining parks, recreation
centers, and libraries; and impro��ing water recvcling and irrigation s��stems (collectiveh•. "Cih�
Infrastructure. Facilities and Equipment Priorities-'); and
�l'HEREAS, althoueh the City's finances have impro��ed since the recent recession. it is
still experiencing financial challenaes and is unable to address the Cit.�'s infrastructure
deficiencies ��'ithin its current budaet: and
\1%HEREAS. the Cit�� has determined that the enactment of a seneral local transactions
and use ta� (commonh� I:no���n as a "sales tax") would allo�� the Cin� to address the Citv
Infrastructure; Facilities and Equipment Priorities iden[ified abo��e �ti�ithout compromisin_
e�istine Cirv services: and
V�'HEREAS, pursuant to Article �i[[I C of the Califomia Constitution, and Califomia
Re��enue and Ta�ation Code Section 728�.9. the Cit�� has the authorit�� to enact a local sales ta�
for general purposes N�ith the appro��al of the majorih� of voters in the City ��otine in an election
on the issue: and
\�'HEREAS, the Cih� Council directed staff to prepare for submittal to the ��oters an
ordinance enactine a one-half cent sales tas for 10 ��ears consistent ��ith all applicable eeneral
purpose tax la��°s. includine measures pro��iding for citizens' o�ersieht, separate accounting and
independent audits; and
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Resolution No. 2016-146
Paae No. 7
WHEREAS, proposed Chapter 3..i3 of the Chula Vista Municipal Code, set forth below.
establishes a transactions and use taa to be administered by the State Board of Equalization
consistent��ith Cit�� Counci] direction; and
VdHEREAS, concurrentl}� here���ith the City Council is adopting a spending plan
expressing its intention to eapend new sales tax revenues on City Infrastructure, Facilities and
Equipment Priorities, as more particularly described tl�erein (the "City Council Intended
Infrastructure, Facilities and Equipment Expenditure Plan").
NOR', THEREFORE, subject to approval b}� an affirmative. simple majority vote of the
people as required by law; the People of the Cit�� of Chula Vista do ordain as follows:
SECTION 1:
The Chula Vista Municipal Code is hereby revised to add Chapter 3.33 as set forth below;
thereby enacting a ]ocal transactions and use tax within the City of Chula Vista, to be
administered b�� the State Board of Equalization:
CHAPTER 3.33
CHULA VISTA TEMPORARY ONE-HALF CGNT SALES TAX
Sections:
3.33.010 Title.
333.020 Purpose.
3.33.030 Operative date.
3.33.040 Transactions and use tax imposition and rate.
3.33.050 Termination date.
3.33.060 Contract with State Board of Equalization.
3.33.070 Place of sale.
33�.080 Adoption of provisions of state law�.
3.33.090 Limitations on adoption of state law and collection of use taaes.
3.33100 Permit not required.
3.33.110 Ezemptions and Gaclusions.
3.33.120 Amendments of Revenue and Taxation Code.
3.33130 Enjoinina collection forbidden.
3.33.]40 Amendments by City Council.
3.33.li0 UseofProceeds.
3.33.160 Citizens' o��ersight and accountability.
3.33.170 Se��erability.
3.33.010 TITL�.
165794.1
Resolution 1vo. 2016-146
Paee ?vo. 8
This ordinance shall be 1:noNn as the Chula V"ista Temporan One-Half Cent Sales Ta�
Ordinance. The Cit�• of Chula Vista hereinafrer shall be called "Cim." This Ordinance shall be
applicable in the incorporated temtory of the Cit..
3.33.020 PURPOSE.
This Ordinance is adopted to achie��e the follo��in�, amon� other purposes. and directs that the
pro�isions hereof be interpreted in order to accomplish those purposes:
A. To impose a retail transactions and use tax. in accordance H�ith the provisions of
Pan 1.6 (commencing ���ith Section 72�1) oF Di�ision 2 of the Re�enue and Taxation Code and
Section 728�.9 of Pan 1 J of Di��ision 2 ti�hich authorizes the City to adopt this ta� ordinance
�i�hich shall be operati��e if a majorit}� ��ote of the electors votine on the measure �ote to approve
the imposition of the ta�: at an election called for that purpose. �
B. To adopt a retail transactions and use tax ordinance that incorporates provisions
identical to those of the Sales and Use Ta� La�ti� of the State of Califomia insofaz as those
provisions are not inconsistent �i'ith the requirements and limitations contained in Part 1.6 of
Division 2 of the Re��enue and Taaation Code.
C. To adopt a retail iransactions and use ta� ordinance that imposes a tax and
pro�ides a measure therefore that can be administered and collected b�� the State Board of
Equalization in a manner that adapts itself as fulh� as practicable to, and requires the least
possible de��iation from, the e�istine stamton� and administrative procedures follo�ti�ed bv the
State Boazd of Equalization in administerine and collecting the California State Sales and Use
Ta�es.
D. To adopt a retail transactions and use ta� ordinance that can be administered in a
manner that ��ill be, to the ereatest degree possible, consistent �vith the pro��isions of Part 1.6 of
Division 2 of the Revenue and Taxation Code. minimize the cost of collectine the transactions
and use tazes, and at the same time, minimize the burden of record keeping upon persons subject
to ta.iation under the pro��isions of this Ordinance.
3.33.030 OPERATIVE DATE.
"Operati��e Date" means the first da�� of the first calendar quarter commencina more than ll0
da}�s afrer the approval of the �oters of the Cit� of a measure appro��ing the imposition of the
transactions and use ta� set forth herein. unless a later Operative Date becomes effecti��e under
the pro��isions of Section 3.33.060.
3.33.0=�0 TRANSACTIONS A\D USE TA� In4POSITION AND Rr1TE.
A. For the pri��ile�e of selling tangible personal propert�� at retail. a ta� is hereb�
imposed upon all retailers in the incorporated territor�� of the Cit� at the rate of one-half of one
165794.7
Resolution No. 2016-146
Page No. 9
percent (0.5%) of the gross receipts of an�� retailer from the sale of all tangible personal propem�
sold at retail in said territor�� on and after the Operative Date oP this Ordinance.
B. An excise tax is hereby imposed on the stora�e, use or other consumption in the
City of tangible persona] propert}� purchased from any retailer on and afrer the Operative Date of
this Ordinance for storage, use or other consumption in said territory at the rate of one-half of one
percent (0.5%) of the sales price of the property. The sales price shall include deliven� charges
when such charges are subject to state sales or use tax regardless of the place to which delivery is
made.
3.33.050 TERMINATIOI�' DATE.
The authorit�� to lev�� the tax imposed by this Ordinance shall expire ten (10) years followina the
Operative Date.
3.33.060 CONTRACT WITH STATE BOARD OF EQUALI7ATION.
Prior to the Operati��e Date, Cit}� shall contract with the State Board of Equaliza[ion to perform
all functions incident to the administration and operation of this Ordinance; pro��ided, that if the
City shall not have contracted ���ith the State Board of Equalization prior to the Operative Date, it
shall nevertheless so contract, and in such a case the Operative Date shall be the first day of the
first calendar quaRer folloti�ing the effeetive date of such a contract.
333.070 PLACE OF SALE.
For the purposes of this Ordinance, all retail sales are consummated at the place of business of
the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an
out-of-state destination or to a common carrier for delivery to an out-of-state destination. The
gross receipts from such sales shall include delivery charges, when such charges are subject to
the State sales and use taa, regardless of the place to which delivery is made. In the event a
retailer has no permanent place of business in the State or has more than one place of business.
the place or places at Nfiich the retail sales are consummated shall be determined under rules and
regulations to be prescribed and adopted by the State Board of Equalization.
333.080 ADOPTION OF PROVISIONS OF STA1'E LAW.
E�cept as otherwise provided in this Ordinance and except insofar as they are inconsistent with
the pro��isions of Part 1.6 of Di��ision 2 of the Revenue and Taxation Code, all of the provisions
of Part 1 (commencing with Section 6001) of Division 2 of tl�e Revenue and Tasation Code are
hereby adopted and made a part of this Ordinance as though fully set forth herein.
333.090 LIMITATIONS ON ADOPTION OF STAT� LAW AND COLLECTION OF USE
TAaGS.
In adop[inR the provisions of Part 1 of Di��ision 2 of the Revenue and Taxation Code:
iss�sa.i
�
Resolution No. 2016-1�6
Paee ?�'o. ]0
.A. l�'here��er the State of California is named or referred to as the ta.�ine asencv. the
name of this Cim shall be substiruted therefor. Ho���ever. the substitution shall not be made
N�hen:
� l. The word "State" is used as part of the title of the State Controller. State
Treasurer. Victim Compensation and Govemment Claims Board, State Boazd of Equalization,
State Treasun�, or the Constitution of the State of California:
2. The result of that substimtion �vould require action be tal:en by or aeainst
this Cit�� or anv aaenc}�, officer, or emplo��ee thereof, rather than b�� or against the State Board of
Equalization. in performing the functions incident to the administration or operation of this
Ordinance.
3. In those sections. includine but not necessarilv limited to sections refemna
to the esterior boundaries of the State of California. where the result of the substitution would be
to:
a. Provide an e�emption from this ta.� ���ith respect to cenain sales,
storage; use or other consumption of tangible personal propertp �-hich ���ould not othen��ise be
eaempt from this tax ���hile such sales, storage, use or other consumption remain subject to ta� b��
the State under the pro��isions of Part 1 of Division 2 of the Re��enue and Taaation Code; or
b. Impose this tax w�ith respect to certain sales. storage. use or other
consumption of tangible personal propeny ���hich ���ould not be subject to tas b�� the State under
the said provision ofthat code.
4. In Sections 6701, 6702 (except in the last sentence thereo�, 6711; 671�,
6737. 6797 or 6828 of the Re��enue and Taxation Code.
B. The word "Cih�' shall be substituted for the �i�ord "State ' in the phrase "retailer
engaeed in business in this State' in Section 6203 and in the definition of that phrase in Section
6203.
3.33.100 PERn4IT NOT REQUIRED.
If a seller's permit has been issued to a retailer under Section 6067 of the Re��enue and Ta�ation
Code. an additional transactors permit shall not be required b�� this Ordinance.
3.33.110 EXEA4PTIONS AND EXCLUSIONS.
.A. There shall be e�:cluded from the measure of the transactions ta� and the use ta�
the amount of an� sales tas or use tax imposed by the State of California or b�� am citv. cit� and
countv, or countv pursuant to the Bradlev-Burns Uniforni Local Sales and Use Tax La��� or the
amount of anv state-administered transactions or use taz.
165794.1
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Resolution No. ZO16-146
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B. There are exempted from the computation of the amount of transactions tax the
gross receipts from:
1. Sales of taneible personal property, other than fuel or petroleum products.
to operators of aircrafr to be used or consumed principally outside the count�� in which the sale is
made aud directly and eadusivel}� in the use of such aircraft as common carriers of persons or
property under the authorit}� of the laws of this State, the United States; or any foreign
government.
2. Sales of property to be used outside the City which is shipped to a point
outside the City; pursuant to the contract of sale, by delivery to such point by the retailer or his
a�ent, or by deli��ery by the retailer to a carrier for shipment to a consignee at such point. For the
purposes of this paragraph. delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehides) subject
to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the
Vehicle Code, aircrafr licensed in compliance with Section 21411 of the Public Utilities Code,
and undocumented vessels reeistered under Chapter 2 of Division 3.5 (commencing with Section
9840) of the Vehicle Code b}� reeistration to an out-of-City address and by a declaration under
penalty of perjury; signed by the buyer, stating that such address is, in fact, his or her principal
place of residence; and
b. With respect to commercial vehicles, by reaistration to a place of
business out-of-City and declaration under penalty of perjury, signed by the buyer, that the
vehicle N�ill be operated from that address.
3. The sale of tangible personal property if the seller is obligated to fizmish
the property for a fixed price pursuant to a contract entered into prior to the operative date oP this
Ordinance.
4. A lease of tanaible personal property which is a continuing sale of such
property, for any period of time for which the lessor is obligated to lease the property for an
amount fiaed by the leasc prior to the operative date of this Ordinance.
5. For the purposes of subsections (3) and (4) of this section, the sale or lease
of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease
for any period of time for H�hich an}' party to the contract or lease has the unconditional right to
terminate the contract or lease upon notice_ whether or not such right is exercised.
C. There are eaempted from the use tax imposed by this Ordinance, the storage; use
or other consumption in this Cit�� of tangible personal properiy:
L The gross receipts from the sale of which have been subject to a
transactions tas under anv State-administered transactions and use ta� ordinance.
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Resolution No. 2016-146
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2. Other than fuel or petroleum products purchased b� operators of
aircrafr and used or consumed b� such operators directl}� and e�clusi��el�� in the use of such
aircraft as common carriers of persons or propert�� for hire or compensation under a cenificate of
public con��enience and necessit�� issued pursuant to the la��s of this State. the linited States, or
ane foreign eovemment. This exemption is in addition to the eaemptions pro��ided in Sections
6366 and 6366.1 of the Revenue and Ta�ation Code of the State of Califomia.
3. If the purchaser is obligated to purchase the propem for a fized
price pursuant to a contract entered into prior to the operati��e date of this Ordinance.
�. If the possession of. or the exercise of anv rieht or po«�er over, the
taneible personal property arises under a lease ���hich is a continuing purchase of such property
for an�� period of time for which the ]essee is oblieated to lease the propert�� for an amount fixed
b}' a lease prior to the Operati��e Date of this Ordinance.
>. For the purposes of subpara�raphs (3) and (4) of this section,
storage. use. or other consumption, or possession of. or esercise of an�- rieht or power over:
tangible personal propem� shal] be deemed not to be obligated pursuant to a contract or lease for
am period of time For �vhich an� part}� to the contract or lease has the unconditional rieht to
terminate the contract or lease upon notice, ��hether or not such rieht is exercised.
6. E�cept as pro��ided in subparaeraph (7), a retailer eneaged in
business in the Cit}� shall not be required to collect use [ax from the purchaser of [an�ible
personal propert��, unless the retailer ships or delivers the property into the Citr or participates
�vithin the Cit}� in mal:ine the sale of the propem�. including. but not limited to, solicitine or
recei��ins the order. either directiv or indirectiv; at a place of business of the retailer in the Cit�� or
through any representative. aeent can��asser. solicitor. subsidian. or person in the City under the
authorit�� of the retailer.
7. "A retailer enea�ed in business in the Citv" shall also include am�
retailer of anv of the follo�+�ing: ��ehicles�subject to registration pursuant to Chapter 1
(commencine w�ith Section 4000) of Di��ision 3 of the Vehicle Code; aircraft licensed in
compliance ���ith Section 2141 1 of the Public Utilities Code. or undocumented ��essels reeistered
under Di��ision 3.� (commencine �ti�ith Section 9840) of the Vehicle Code. That retailer shall be
required to collect use tas from am purchaser �i�ho registers or licenses the ��ehide, vessel, or
aircrafr at an address in the Cit��.
D. Am person subject to use ta� under this Ordinance mav credit against that ta� an�
transactions tax or reimbursement for transactions tas paid to a district imposing, or retailer liable
for a transactions tax pursuant to Part 1.6 of Di��ision 2 of the Re��enue and 7asation Code ��ith
respect to [he sale to the person of the propeny the stora_e, use or other consumptions of���hich is
subject to the use ta�.
3.33.120 .AME\'DME\�TS TO REVE\'UE AND T,4,�ir1T10\' CODE.
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All amendments subsequent to the effective date of this Ordinance to Part 1 of Di��ision 2 of the
Re��enue and Taxation Code relating to sales and use taxes and ti�hich are not inconsistent N�ith
Part 1.6 and Part 1.7 of Division 2 oF the Re��enue and Taaation Code, and all amendments to
Part 1.6 and Part 1.7 of Di��ision 2 of the Revenue and Taaation Code. shall automaticallv
become a part of this Ordinance, provided however, that no such amendment shall operate so as
to affect the rate of taa imposed by this Ordinance.
3.33.130 ENJOINING COLLECTIOI�� FORBIDDEN.
No injunction or ��rit of mandate or other legal or equitable process shall issue in any suit, action
or proceeding in any court against the State or the City; or against any officer of the State or the
City, to prevent or enjoin the collection under this Ordinance, or Part 1.6 of Division 2 of the
Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
3.33.140 AMENDMENTS BY CITY COUNCIL.
The followina amendments to this Ordinance must be approved by the voters of the City:
increasing the tax rate; revising the methodology for calculating the tax, such that a tax increase
would result; imposing the taa on transactions and uses not previously subject to the tax (unless
such amendment occurs automatically by operation of law); or extending the term of the tax. The
City Council may otherwise amend this Ordinance without submitting the amendment to the
��oters for approval.
3.33.150 USE OF PROCEEDS.
The proceeds from the taa imposed by this Ordinance shall be for general governmental purposes
of the City and shall be received into the general fund of the Ciry. Nothing in this Ordinance
shall constitute the taa imposed under this Ordinance as a special tax, or bind the City to use the
proceeds for an�= specific purpose or funetion; the City Council shall retain discretion to expend
the proceeds of the taa for an}- laN�ul purpose of the City.
3.33.160 CITIZENS' OVERSIGHT AND ACCOUNTABILITY.
In order to provide for citizens' oversight, transparenc}' and accountability in connection ���ith
eapenditures of tax revenues generated under the tenns of this Ordinance; the Cin� shall do the
folloH�ing:
A. Separate Fund Accounting. All revenue generated by the tax shall be accounted in
the General Fund as a separate line item entitled "Local Sales and Use Tax — Measure `X`
Re��enues." These re��enues will then be transferred to a General Fund subfund entitled "Measure
`X' Fund." Am� and all expenditures of Measure `X' Fund monies will be tracked and
accounted for b�� Cit�� Finance Department staff in accordance with Generally Accepted
Accounting Principles (GAAP), and presented annually in a report (the `'�inance Department
ReporC�) to the Citizens' O��ersi;ht Committee (`COC") created pursuant to subdivision D.
belo�v.
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B. Initial and .Annual Submittal of ?�4easure � Soendine Plan. If A9easure `X' is
appro�ed b}' the ��oters, �vithin 30 davs after such appro��al the City I�9anager shall brine forth for
Cih Council consideration and action, in its discretion. proposed budget amendments and
financing options to accelerate laree-scale projecu for fiscal vear 2016-17 that would fund and
implement the Cit� Council Intended Infrastructure. Facilities and Equipment Espenditure Plan
that ���as approved b� the Citv Council concurrent ��•ith this Ordinance. using �4easure � fund
re�enues. For each subsequent ��ear, prior to City Council consideration of the Cit�'s annual
budeet. Cit�� staff will prepare and present to the COC for its re�ie��° a spending plan for A4easure
`X Fund re��enues. Such plan (the "�4easure `?i' Spendin_ Plan `) shall be consistent ��ith the
Cit� Council Intended Infrastructure, Facilities and Equipment Espenditure Plan. include specific
proposals for near term e�penditures, a plan for expenditures throuehout the ]0-vear term of the
tax, and finance options for lareer-scale projects that mav require the pledge of Measure `?C'
revenues. Afler re�iew by the COC, the Measure `l' Spendine Plan shall be incorporated into
the Cin' h4ana�er`s proposed budeet, and then presented to the Cin� Council for its consideration
and action. in its discretion, as part of the Cit��'s annual budset process. The City Council must
consider for appro��al the espenditure of projected Aleasure `X' Fund re��enues as a separate line
item cateeorv in each vear`s budaet.
C. Annual. Independent .Audit. Beginnine �+ith the fiscal vear that ends June 30.
2017, the Citv's independent auditors shall, as part of their annual audit of the Cit��`s financial
statements; revie��� the collection and expenditure of re��enue from the Measure `?<' tax. Along
���ith the City's Finance Department repon pro�'ided in subsection A.. abo��e_ the auditors' revie���
of such revenues (`Auditor Repon") shall be presented each vear to the COC at a public meetins
for its re�iew for compliance �i�ith the terms of this Ordinance and to disdose ���hether or not it
has been e�pended in accordance �vith the Cit�� Council approved ?�leasure X Spendine Plan.
The results of the COC re��ie�+� shall then be transmitted throuah the Cit�� A4anaser s Office to the
City Council for its consideration at a public meetine.
D. Citizens O��ersiaht Committee. Prior to the Operati��e Date. the Cit�� shall create
and comene a Citizens' O��ersight Committee (`COC"). The function of the COC shall be to
re��ie�v and repon on Cit�� compliance H�ith the terms of this Ordinance and the spending
guidelines contained in the Cit�� Council Intended Infrastructure. Facilities and Equipment
Expenditure Plan and each Measure X Spendine Plan presented and approved bv the Citv
Council thereafter. Specific COC responsibilities shall include: (1) public revieu� and comment
on each ��ear`s Finance Department Report, Measure `�` Spendine Plan and Auditor Report (as
pro�ided in subsections A-C. abo��e); (2) preparation of an annua] report resardins same for
presentation to the Cit}� Council at a public meetine: and (3) ��orkin� �aith Citv staff to identifcfr
and appl}� "best practices" for trackine and reportine on A4easure `l�revenues and e�pendirures
relative to other Cit.� re��enues and espenditures. Current elected Cit}� officials and emplo}ees are
disqualified from membership. COC members shall be appointed b�� the Citv Council in
accordance ���ith esistin� Cih� policies and �rill include indiriduals ���ith a ranse of ezpertise,
includine accounting, finance and engineering. The COC shall operate in accordance «�ith the
Ralph A4. Bro�+�n Act, ��fiich includes requirements that meetings be noticed in advance and held
in public. The COC shall be created b�� Cit�� Council ordinance consistent ��ith the temis of this
Section adopted no later than December 31, 2016.
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3.53.170 SEVERABILITY.
If an�� pro��ision of this Ordinance or the application thereof to anv person or circumstances is
held im�alid; such invalidit�� shall not affect other provisions or applications of the Ordinance
which can be gi��en effect without the im�alid pro��ision or application, and to this end the
provisions of this Ordinance are severable. This City Council hereby declares that it N�ould have
adopted this Ordinance irrespective of the invaliditv of any particular portion thereof and intends
that the invalid portions should be severed and the balance ofthe Ordinance be enforced.
SECTION 2:
The City Clerk shall be authorized to replace the terms "Measure X" wherever they appear in this
Ordinance with the respective ballot designations determined by the County Reaistrar before this
Ordinance is codified.
SECTION 3:
This Ordinance shall take effect immediately, upon approval by a simple majority of the voters
voting on the question at the November 8, 2016 election.
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