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Resolution 14660CITY OF ALAMEDA RESOLUTION NO. 14660 CALLING AN ELECTION IN THE CITY OF ALAMEDA ON JUNE 5, 2012, FOR THE PURPOSE OF SUBMITTING TO THE ELECTORS A BALLOT MEASURE SEEKING ENACTMENT OF A ONE -HALF OF ONE PERCENT SPECIAL TRANSACTIONS AND USE (SALES) TAX, ESTABLISHING THE POLICIES AND PROCEDURES FOR SUCH AN ELECTION AND REQUESTING THAT THE COUNTY OF ALAMEDA CONDUCT SUCH AN ELECTION WHEREAS, the City of Alameda like all California cities has faced decreasing revenues, increasing Sacramento money grabs and increased costs of providing essential city services and facilities residents rely upon; and WHEREAS, the City has maintained a balanced budget by reducing spending in all City departments, lowering service levels, and deferring essential capital projects; and WHEREAS, the City of Alameda has a budget shortfall of $4.4 million in FY 2012 -13; and WHEREAS, without additional revenue the City will have no choice other than to make additional cuts to address the $4.4 million budget shortfall in Fiscal Year 2012-13 and the ongoing shortfalls over the next five years will p revent the City from undertaking necessary capital projects that wilt remain uncompleted; and WHEREAS, without additional revenue the City of Alameda will be unable to provide the vehicles and facilities for police officers and firefighters necessary y for quick and effective response, provide swimming facilities, and make improvements to the historic Carnegie building, as well as other public safety, y recreational, and cultural facilities and equipment needs; and WHEREAS, with police and fire protection comprising over 60% of the City's general fund budget, the City cannot avoid more cuts to public safety, resulting in longer 0.1 -1 emergency response times; and WHEREAS, a locally enacted revenue measure would protect and maintain City of Alameda services and provide funding for necessary public safety facilities, and equipment, and Emergency Operations staffing and on for recreation and cultural facilities; and WHEREAS, at its June 28, 2011 meeting, the City Council adopted a budget for FY 2011-12 that recognized the need for additional revenue to maintain and preserve the level of services desired by residents of the City and to provide the public safety facilities and equipment and recreation and cultural facilities that the community needs; and WHEREAS, at its March 7, 2012 meeting, the Council considered calling a special election to seek voter approval of a proposed special transactions and use tax ("sales tax"), as authorized by Revenue and Taxation Code section 7285.91; and WHEREAS, at that meeting the City Council concluded that all of the information presented indicated that, to obtain the revenue necessary to maintain and preserve service levels, the Council should call an election to ask the voters of the City to approve a local transactions and use tax, the revenue from which could be used to support public safety vehicles and facilities, swimming facilities, and improvements to the historic Carnegie building, as well as other public safety, recreational, and cultural facilities and equipment needs; and WHEREAS, on the basis of the foregoing, the City Council determined that it was appropriate to place a measure regarding a special transactions and use (sales) tax before the voters at the June 5, 2012, election; and WHEREAS, this measure would create a guaranteed source of local funding for our essential city services facilities that cannot be taken by Sacramento, ensuring our tax dollars are spent locally for City of Alameda residents; and WHEREAS, the tax, if approved, would be imposed on the sale of tangible personal property and the storage, use, or other consumption of such property. The tax rate would be one half of one percent (0.50%) (a half cent for each dollar) of the sales price of the property. The tax revenue would be collected by the State Board of Equalization and remitted to the City. The tax would be in effect for 30 years and would then expire automatically, unless extended by the voters. The tax shall be approved if the measure receives at least a two-thirds majority of affirmative votes; and WHEREAS, based on all of the information presented at the Feb. 23, 2012, meeting of the City Council. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ALAMEDA THAT: Section 1. Pursuant to the City Charter, and California Elections Code Section 9222 the City Council of the City of Alameda does hereby call a special election in the City on June 5, 2012 at which it shall submit to the qualified voters of the City, a measure that, if approved, would adopt a special transactions and use tax, as authorized by the Revenue and Taxation Code section 7285.91. This measure shall be designated by letter by the Alameda County Elections Department. Pursuant to Election Code Section 10400 et seq., the election for this measure shall be consolidated with the established election to be conducted on June 5, 2012. Section 2 The City Council hereby declares its intent to consolidate this special election with the Election to be held on June 5, 2012. Section 3. The ballot label for the measure shall read as follows: MEASURE: City of Alameda Public Safety and 911 Emergency Response Measure. To maintain neighborhood crime patrols, fire protection and 911 emergency response; improve earthquake preparedness; replace an unsafe fire station; establish a citywide Emergency Operations Center, a joint police/ fire training facility, library, cultural and recreational facilities; replace outdated police/ fire vehicles and equipment, and for other capital equipment and facilities, shall the City of Alameda enact a one-half cent sales tax, with all revenue staying in the City, mandatory annual audits and public expenditure reports? YES NO The text of the proposed initiative is on file in the Office of the City Clerk and incorporated herein by reference. Section 4. The ordinance authorizing the special tax to be approved by voters pursuant to Sections 2 and 3 of this Resolution is as set forth in Attachment 1 hereto. The City Council hereby approves the ordinance, in the form thereof, and its submission to the voters of the City at the June 5, 2012, election, as required by the Revenue and Taxation Code section 7285.9, subject to the approval of two-thirds of the voters voting on the measure at the election called by the adoption of this resolution. The entire text of the ordinance, attached hereto as Attachment 1, shall be made available to the public upon request. The ordinance specifies that the rate of the transactions tax shall be one -half of one percent (0.50 %) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City; it specifies that the rate of the use tax shall be one -half of one percent (0.50 %) of the sales price of tangible personal property stored, used or otherwise consumed in the City. The State Board of Equalization shall collect the tax from retailers subject to the tax and remit the funds to the City. If approved by the voters, the tax shall be in effect for 30 years. Section 5. Publication of Measure. The City Clerk is hereby directed to cause notice of the measure to be published once in official newspaper of the City of Alameda, in accordance with Section 12111 of the Elections Code and Section 6061 of the Government Code. Section 6. The City Council adopts the provisions of section 9285(a) of the Elections Code to permit rebuttal arguments, if arguments have been filed in favor of or against the measure. Section 7. Pursuant to California Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk in a time reasonably necessary to prepare and print the analysis. Section 9. Notice of the time and place of the election on this proposed sales tax measure 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 10. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by lair for holding municipal elections. Section 11. The City Clerk is hereby authorized, instructed and directed to procure and furnish (or cause to be procured and furnished) any and all official ballot notices, printed matter and all other supplies, equipment and paraphernalia that may be necessary to prepare and lawfully conduct the special election. Section 12. The polls for the special election shall be open at 7:00 AM on the day of said election and shall remain open continuously from said time until 8:00 PM of the same day and shall then be closed, except as provided in Section 14401 of the Elections code. ATTACHMENT 1 CITY OF ALAMEDA ORDINANCE NO. AMENDING THE ALAMEDA MUNICIPAL CODE BY ADDING SECTION 3 -63 (TRANSACTION AND USE TAX) TO PART C (USE TAX) OF DIVISION IX (TAXES) OF ARTICLE 11 (TAXATION) OF CHAPTER 111 (FINANCE AND TAXATION) IMPOSING A SPECIAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION WHEREAS, the City of Alameda like all California cities has faced decreasing revenues, increasing Sacramento money grabs and increased costs of providing essential city services and facilities residents rely upon; and WHEREAS, the City has maintained a balanced budget by reducing spending in all City departments, lowering service levels, and deferring essential capital projects; and WHEREAS, the City of Alameda has a budget shortfall of $4.4 million in FY 2012 -13; and WHEREAS, without additional revenue the City will have no choice other than to make additional cuts to address the $4.4 million budget shortfall in Fiscal Year 2012 -13 and the ongoing shortfalls over the next five years, which will p revent the City from undertaking necessary capital projects; and WHEREAS, without additional revenue the City of Alameda will be unable to provide the vehicles and facilities for police officers and firefighters necessar y for quick and effective response, provide swimming facilities, and make improvements to the historic Carnegie building, as well as other public safety, recreational, and cultural facilities and equipment needs; and WHEREAS, with police and fire protection comprising over 60% of the City's general fund budget, the City cannot avoid more cuts to public safety, resultin g in longer 9-1-1 emergency response times; and WHEREAS, a locally enacted revenue measure would provide funding for necessary public safety facilities, equipment, and one Emergency Operations Coordinator and for recreation and cultural facilities; and WHEREAS, at its June 28, 2011 meeting, the City Council adopted a budget for FY 2011 -12 that recognized the need for additional revenue to maintain and preserve the level of services desired by residents of the City and to provide the public safety facilities and equipment and recreation and cultural facilities that the community needs; and WHEREAS, at its March 7, 2012 meeting, the Council considered calling a special election to seek voter approval of a proposed special transactions and use tax or ("sales tax "), as authorized by Revenue and Taxation Code section 7285.91; and WHEREAS, at that meeting the City Council concluded that all of the information presented indicated that, to obtain the revenue necessar y to maintain and preserve service levels, the Council should call an election to ask the voters of the City to approve a local transactions and use tax, the revenue from which could be used to support public safety vehicles and facilities, swimming facilities, and improvements to the historic Carnegie building, as well as other public safety, v recreational, and cultural facilities and equipment needs; and WHEREAS, on the basis of the foregoing, the City Council determined that it was appropriate to place a measure regarding a special transactions and use (sales) tax before the voters at the June 5, 2012, election; and WHEREAS, this measure would create a guaranteed source of local funding for our essential city facilities that cannot be taken by Sacramento, ensurin g our tax dollars are spent locally for City of Alameda residents; and WHEREAS, the tax, if approved, would be imposed on the sale of tangible personal property and the storage, use, or other consumption of such ro ert . The p p y tax rate would be one half of one percent (O.50 %) (a half cent for each dollar) of the sales price of the property. The tax revenue would be collected by the State Board of Equalization and remitted to the City. The tax would be in effect for 30 y ears and would then expire automatically, unless extended by the voters. The tax shall be approved if the measure receives at least a two - thirds majority of affirmative votes. NOW, THEREFORE, BE IT ORDAINED by the People of the City of Alameda that: Section 1. The Alameda Municipal Code is hereby amended by adding new Sections 3 -63 through 3- 63.15, inclusive, (Transaction and Use Tax) to Part C (Use Tax) of Division IX (Taxes) of Article 11 (Taxation) of Chapter 111 (Finance and Taxation) to read as follows: 3 -63 TRANSACTIONS AND USE TAX 3 -63.1 Title. This ordinance shall be known as the City of Alameda Special Transactions and Use Tax Ordinance. The City of Alameda hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 3 -63.2 Operative Date. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 3-63.3 Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: a. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.91 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a two-thirds majority of y the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. b. To adopt a retail transactions and use tax ordinance that incorporates nrnvisinns iriPrifiral to thnqra of thin SnIpAc and i lse Taxi au/ of the 1... r► .. ........ ......_ . ........... .. ti ■ ..+ r.r v+ x .� ... : u v V V .. ► • ... 4l Y Y LJ [ . L 1 1 .+ . S r .a l i fo rn i a J L Gi 1 e o1 L.J G 1 1 11a 1 1 11 A insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. c. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected b y the State Board of Equalization in a manner that adapts itself as fully as practicable to and requires the least possible deviation from the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. d. To adopt a retail transactions and use tax ordinance that can be administered in a manner that wilt be to the greatest degree possible consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code minimize the cost of collecting the transactions and use taxes and at the same time minimize the burden of record keeping upon persons subject to taxation under the p rovisions of this ordinance. 3-63.4 contract with State. Prior to the operative date the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance provided that if the City shall not have contracted with the State Board of Equalization prior to the operative date it shall nevertheless so contract and in such a case the operative date shalt be the first day of the first calendar quarter following the execution of such a contract. 3 -63.5 Transactions Tax Rate. For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 0.50 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 3 -63.6 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 tax regardless of the place to which delivery is made In the event a retailer has no permanent place of business in the State or has more than one place of business the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3 -63.7 Use Tax Rate. An excise tax is hereby imposed on the storage use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage use or other consumption in said territory at the rate of 0.60 percent of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sates or use tax regardless of the place to which delivery is made. 3 -63.8 Adoption of provisions of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 3 -63.9 Limitations On Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: a. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller State Treasurer State Board of Control State Board of Equalization State Treasur y or the Constitution of the State of California; or 2. The result of that substitution would require action to be taken by or against this City or any agency officer or employee thereof rather than by or against the State Board of Equalization in performing the functions incident to the administration or operation of this Ordinance; or 3. In those sections including but not necessarily limited to sections referring to the exterior boundaries of the State of California where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales storage use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales storage use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or b. Impose this tax with respect to certain sales storage use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701 0 702 (except in the last sentence thereof) 6711 6715 6737 6797 or 6828 of the Revenue and Taxation Code. b. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3 -63.10 Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code an additional transactor's permit shall not be required by this ordinance. 3 -63.11 Exemptions and Exclusions. a. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state- administered transactions or use tax. b. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property other than fuel or petroleum products to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State the United States or any foreign government; dr 2. Sales of property to be used outside the City which is shipped to a point outside the City pursuant to the contract of sale by delivery to such point by the retailer or his agent or by delivery by the retailer to a carrier for shipment to a consignee at such point For the purposes of this paragraph delivery to a point outside the City shall be satisfied: . a. With respect to vehicles other than commercial vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code aircraft licensed in compliance with Section 21411 of the Public Utilities Code and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out of City address and by a declaration under penalty of perjury signed by the buyer statin g that such address is in fact his or her principal place of residence; and b. With respect to commercial vehicles by registration to a place of business out -of -City and declaration under penalt y of perjury signed g ned p by the buyer that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller: is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance; or 4. A lease of tangible personal property which is a continuin g sale of such property for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. c. There are exempted from the use tax imposed by this ordinance the storage g use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any administered transactions and use tax ordinance; or 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or ro ert for hire or p p y compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State the United States or any foreign government This exemption is in addition to the exemptions provided in Sections 6366 and 61366 of the Revenue and Taxation Code of the State of California; or 3. If the purchaser is obligated to purchase the propert y for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance; or 4. If the possession of or the exercise of any power ht or ower over the g tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance; or 5. For the purposes of subparagraphs 3 and 4 of this section storage g use or other consumption or possession of or exercise of any right or power over tangible personal property shall be deemed not to be obligated p ursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice whether or not such right is exercised; or 6. Except as provided in subparagraph 7 a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property unless the retailer ships or delivers the ro ert into . p p y the City or participates within the City in making the sale of the property including but not limited to soliciting or receiving the order either directly or indirectly at a place of business of the retailer in the City or through any y representative agent canvasser solicitor subsidiary or person in the City under the authority of the retailer; or 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code aircraft licensed in compliance with Section 21411 of the Public Utilities Code or undocumented vessels registered under Division 3.5 commencin g with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle vessel or aircraft at an address in the City. d. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage use or other consumption of which is subject to the use tax. 3 -63.12 Amendments. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code shall automatically become a part of this ordinance provided however that no such amendment shalt operate so as to affect the rate of tax imposed by this ordinance. 3 -63.13 Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit action or proceeding in any court against the State or the City or against any officer of the State or the City to prevent or enjoin the collection under this ordinance or Part 1.6 of Division 2 of the Revenue and Taxation Code of an y tax or any amount of tax required to be collected. 3 -63.14 Expenditure Plan. The expenditure plan required by Revenue and Taxation Code Section 7285.91(c) for the revenue from the tax approved by this Chapter is the following: The City may use revenue from the tax only for the following purposes. police, fire, and other public safety facilities and •equipment; parks and recreation facilities and equipment; cultural facilities; and funding for one position to serve as Emergency v • Operations CJoord Ina tor. Expenditures related to facilities may include (1 preconstruction costs, including but not limited to architectural, engineering, and planning services, (2) construction management, and (3) costs associated with the temporary relocation of existing facilities during planning and construction. Examples of authorized projects include, without limitation, fire station replacement, an Emergency Operations Center, police and fire vehicles, a police /fire joint training J training facility, a lighted, all weather multi- purpose sports field, library and public swim facilities. The City Council may choose not to pursue any particular project listed among those examples, may substitute unidentified but similar projects for those listed, and may decided the order in which projects are initiated and completed, as long as expenditures of revenue from the tax are consistent with the g eneral categories of projects listed in this section. 3- 63.15 Annual Audit By no later than December 31 of each year after the operative date, the city's independent auditors shall complete a report reviewing the collection, management and expenditure of revenue from the tax levied by this chapter. The report shall be reviewed by the City Council as part of its review of the annual audit. 3- 63.16 Termination Date. The authority to levy the tax imposed by this Chapter shall expire on the thirtieth anniversary of the last day of the calendar quarter preceding the operative date. Section 2. Environmental Compliance. The tax approved by this Ordinance is not a project for the purposes of the California Environmental Quality Act (CEQA), pursuant to Guidelines Section 15378(b)(4) which states that a project does not include the creation of g overn went funding mechanisms or government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Accordingly, no CEQA review is required. Section 3. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. y Section 4. Effective Date. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately. APPROVED by the following vote of the People of the City of Alameda on June 5, 2012: YESES NOES ADOPTED by Declaration of the vote at the June 5, 2012, election by the City Council of the City of Alameda on 2012. Presiding Officer of the Council Attest: Lara Weisiger, City Clerk City of Alameda 1, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the 7th day of March, 2012, by the followin g vote to wit: AYES: Councilmembers Bonta, deHaan, Johnson, Tam and Mayor Gilmore 5. NOES: None. ABSENT: None. ABSTENTIONS: None. IN WITNESS, WHEREOF, 1 have hereunto set my hand and affixed the official seal of the said City this 8th day of March, 2012. Lara Weisiger, city CI . r C City of Alameda