RESOLUTION NO
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1 RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS SETTING A MEASURE ON THE NOVEMBER 6, 2018 GENERAL MUNICIPAL ELECTION BALLOT SEEKING VOTER APPROVAL OF A PROPOSED ORDINANCE AMENDING SAN CARLOS MUNICIPAL CODE CHAPTER 3.24 UNIFORM TRANSIENT OCCUPANCY TAX, INCREASING THE TRANSIENT OCCUPANCY TAX BY 2% EFFECTIVE JANUARY 1, AND AUTHORIZING ADDITIONAL 0.5% INCREASES EACH SUBSEQUENT JANUARY 1 UP TO A MAXIMUM OF 14% FOR UNRESTRICTED GENERAL REVENUE PURPOSES AND MAKING OTHER CHANGES; AND AUTHORIZING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS. WHEREAS, a General Municipal Election on Tuesday, November 6, 2018 has been called by Resolution adopted by the San Carlos City Council on June 11, 2018; and WHEREAS, California Constitution Article XIIIC, Section 2, provides that no local government may increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote, and that a measure proposing to adopt a general tax must be consolidated with a regularly scheduled General Municipal Election for members of the City Council; and WHEREAS, the City Council desires, on its own motion, to amend San Carlos Municipal Code Chapter 3.24, particularly Section , to increase the Transient Occupancy Tax ("TOT") rate and to make other changes, with the funds to be deposited in the City's General Fund and to be used for unrestricted general revenue purposes and services including but not limited to offset the City's costs of public safety, community development and parks and recreation; and WHEREAS, the San Carlos City Council is authorized by California Elections Code Section 9222 to place measures before the voters; and WHEREAS, on the basis of the foregoing, the City Council determines it is appropriate to place a measure before the-voters at the November 6, 2018 General Municipal Election regarding increasing the TOT rate. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Carlos hereby approves as follows: SECTION 1. Findings. Ordinance 722 was adopted in 1972, setting the TOT rate at 1%. In 1977, the TOT rate was increased to 6%. The latest rate increase from 6% to 10% was adopted in The City's existing TOT rate has remained at 10% for the last 29 years and ranks the lowest amongst the cities in San Mateo County. SECTION 2. Placement of Measure on the Ballot. Pursuant to California Elections Code Section 9222, the City Council hereby resolves to submit to the voters at the November 6, 2018 General Municipal Election the following ballot question:
2 SAN CARLOS TRANSIENT OCCUPANCY TAX MEASURE To maintain the quality of life in San Carlos by providing services and improvements to accommodate visitors and residents, enhance public safety, community development, parks and recreation programs, street repair and traffic circulation, and for unrestricted general revenue purposes, shall an ordinance be adopted increasing the ongoing tax on hotel guests from 10% to 12% with a 0.5% increase per year for subsequent years up to a maximum rate of 14% adding approximately $1,650,000 annually? Yes No SECTION 3. Proposed Ordinance. The Ordinance authorizing an increase to the Transient Occupancy Tax rate as approved by the voters pursuant to Section 2 is as set forth in Exhibit 1 hereto. The City Council hereby approves the Ordinance, the form thereof, and its submission to the voters of the City at the November 6, 2018 General Municipal Election. The Ordinance specifies that the TOT would be imposed for unrestricted general revenue purposes on the people using hotels, as defined in the ordinance; the tax rate would be increased from ten percent (10%) to twelve percent (12%) of the amount paid for lodging and related services, effective January 1, 2019; the rate would be increased by one-half of one percent (0.5%) each January 1 thereafter, to a maximum rate of fourteen percent (14%); the tax would be collected by hotel operators and remitted to the City; and the tax shall be approved if the measure receives at least a simple majority of affirmative votes at the November 6, 2018 general municipal election. SECTION 4. Consolidation with Statewide General Election. The Board of Supervisors of San Mateo County is hereby requested, pursuant to Election Code Sections et seq., to consolidate the election on the proposed measure with the Statewide General Election to be conducted on November 6, 2018, and to conduct the election on behalf of the City. This measure shall be designated by letter by the County Elections Office. The City requests that the County Elections Office set forth in the voter information portion of all sample ballots to be mailed to the qualified electors of the City the full text of the Ordinance and to mail with the sample ballots to the electors printed copies of the full text of the Ordinance as set forth below, together with the primary arguments and rebuttal arguments (if any) for and against the measure. THE ORDINANCE WOULD AUTHORIZE AN INCREASE TO THE TRANSIENT OCCUPANCY TAX (TOT) RATE FROM TEN PERCENT (10%) TO TWELVE PERCENT (12%) EFFECTIVE JANUARY 1,2019 WITH ONE-HALF PERCENT (0.5%) INCREASES PER YEAR EACH JANUARY 1 FOR SUBSEQUENT YEARS UP TO A MAXIMUM RATE OF FOURTEEN PERCENT (14%) FOR UNRESTRICTED GENERAL REVENUE PURPOSES. THE CITY COUNCIL IS ALLOWED TO IMPOSE A LOWER RATE THAN AUTHORIZED BY THE VOTERS BY DULY ADOPTED RESOLUTION. THE CITY COUNCIL MAY AMEND THE ORDINANCE UNLESS THE AMENDMENT WOULD RESULT IN THE TAX BEING IMPOSED, EXTENDED OR INCREASED. THE ORDINANCE SPECIFIES THAT THE TOT WOULD BE IMPOSED ON PEOPLE USING HOTELS, AS DEFINED IN THE ORDINANCE. THE TAX WOULD BE COLLECTED BY HOTEL OPERATORS AND REMITTED TO THE CITY. THE TAX IS APPROVED IF THE MEASURE RECEIVES AT LEAST A SIMPLE MAJORITY OF VOTES (FIFTY PERCENT PLUS ONE) AT THE NOVEMBER 6, 2018 GENERAL MUNICIPAL ELECTION. ADDITIONAL INFORMATION ON THIS MEASURE CAN BE FOUND AT VVWW.CITYOFSANCARLOS.ORG/TOTM EASU RE.
3 SECTION 5. Conduct of Election. The City Clerk is authorized, instructed and directed to work with the County Elections Office as needed to properly and lawfully conduct the election on the measure. The ballots to be used in the election shall be in the form and content as required by law. The County Elections Office is authorized to canvass the returns of the General Municipal Election. in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 6. Elections Services. The Board of Supervisors is requested to instruct the County Elections Office to provide such services as may be necessary for the holding of the consolidated election. The election shall be held in all respects as if there were only one election. The City acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code Section The City recognizes that the County will incur additional costs because of this consolidation and agrees to reimburse the County for those costs. The City Manager is hereby authorized and directed to expend the necessary funds to pay for the City's cost of placing the measure on the election ballot. SECTION 7. Filing of Resolution with County. The City Clerk is directed to file certified copies of this Resolution with the Board of Supervisors and the Elections Office of the County of San Mateo, together with the attached ballot measure. SECTION 8. No Change in City's Boundaries. The jurisdictional boundaries of the City have not changed since the last general municipal election. SECTION 9. Compliance with the California Environmental Quality Act. The approval of this Resolution is exempt from the California Environmental Quality Act (Public Resources Code et seq., "CEQA," and 14 Cal. Code Reg et seq., "CEQA Guidelines"). The tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have either such effect, the City would undertake the required CEQA review for that particular project. Therefore, pursuant to CEQA Guidelines section CEQA analysis is not required. SECTION 10. Publication of Measure. The City Clerk is hereby directed to cause notice of the measure to be published once in an official newspaper of general circulation for the City of San Carlos, in accordance with Section of the Elections Code and Section 6061 of the Government Code. SECTION 11. impartial Analysis. That the City Council directs the City Clerk to transmit a copy of the measure to the City Attorney, unless the organization or salaries of the office of the City Attorney are affected. a. The City Attorney shall prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure.
4 b. The analysis shall include a statement indicating that the measure was placed on the ballot by the governing body of the City. c. The impartial analysis shall be filed by August 17, SECTION 12. Effective Date. This Resolution shall become effective immediately upon its passage and adoption and the City Clerk is directed to send certified copies of this Resolution to the San Mateo County Board of Supervisors, County Clerk-Recorder and County of San Mateo Election Department. I, Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 11th day of June 2018, by the following vote: AYES, COUNCILMEMBERS: COLLINS, JOHNSON, OLBERT, GRASSILLI NOES, COUNCILMEMBERS: GROCOTT ABSENT, COUNCILMEMBERS: NONE APPROVED: CITERK of the City of San Carlos MAYOR of the City of San Carlos
5 Exhibit 1 ORDINANCE NO AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS AMENDING SAN CARLOS MUNICIPAL CODE CHAPTER 3.24 UNIFORM TRANSIENT OCCUPANCY TAX, INCREASING THE TAX RATE BY 2% EFFECTIVE JANUARY 1, 2019 AND AUTHORIZING ADDITIONAL 0.5% INCREASES EACH SUBSEQUENT JANUARY 1 UP TO A MAXIMUM OF 14%, AND MAKING OTHER CHANGES. WHEREAS, the proposed increase in the Transient Occupancy Tax ( TOT ) if adopted by the voters, once fully implemented, would generate approximately $850,000 to $1,650,000 per year of additional unrestricted general revenue to the City. The additional revenue can be used to enhance City streets, traffic circulation, provide public safety, community development and parks and recreation programs; and WHEREAS, Ordinance 722 was adopted in 1972, setting the TOT rate at 1%. In 1977, the TOT rate was increased to 6%. The latest rate increase from 6% to 10% was adopted in The City s existing TOT rate has remained at 10% for the last 29 years and ranks as the lowest rate amongst the cities in San Mateo County; and WHEREAS, the tax to be submitted to the voters, if approved, would be imposed on the people using hotels, as defined in the Ordinance; the tax rate would be increased from 10% to 12% of the amount paid for lodging and related services, effective January 1, 2019; the rate would be increased by 0.5% each January 1 thereafter, to a maximum rate of 14%; the tax would be collected by hotel operators and remitted to the City; and the tax shall be approved if the measure receives at least a simple majority of affirmative votes at the November 6, 2018 election; and WHEREAS, the TOT is not levied against the City s residents or property owners; rather, it is levied on guests who occupy a hotel in the City of San Carlos for thirty calendar days or less; and WHEREAS, there are currently seven hotels in operation with 378 rooms within the City limits. This number will increase to 10 hotels and an additional 452 rooms expected by late 2020; and WHEREAS, the increase in the TOT rate will produce the additional benefit of helping to recoup costs associated with the impacts travelers and visitors have on the City s many amenities, such as but not limited to, police services, traffic circulation, parks and recreation and public roads. It also will reduce the per capita cost of general municipal program and services paid by local residents and businesses. The City Council of the City of San Carlos does ordain as follows: SECTION 1. The San Carlos Municipal Code is hereby amended by enacting and adopting Chapter 3.24 as set forth in Exhibit A. SECTION 2. Use of Tax Revenue. The tax authorized by this Ordinance is a general tax, revenue from which may be spent for unrestricted general revenue purposes.
6 SECTION 3. Amendment. This Ordinance may only be amended by a vote of the People of the City of San Carlos, if the amendment would result in the tax being imposed, extended, or increased in a manner not authorized by this Ordinance as originally approved by the People. The City Council may establish rules that are necessary and desirable for implementation of this Ordinance and may amend any aspect of the Ordinance as long as such amendment does not result in an increase in the authorized tax rate or imposition of the tax on someone not previously subject to it. SECTION 4. 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. SECTION 5. Effective Date. This Ordinance shall become effective 10 days after the certification by the City Council of the election returns indicating passage of the Ordinance codified in this article by a majority of the voters casing votes in the November 6, 2018 election. SECTION 6. Compliance with the California Environmental Quality Act. The approval of this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code et seq., CEQA, and 14 Cal. Code Reg et seq., CEQA Guidelines ). The Transient Occupancy Tax imposed by the adoption of this Ordinance is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have either such effect, the City would undertake the required CEQA review for that particular project. Therefore, pursuant to CEQA Guidelines section CEQA analysis is not required. SECTION 7. City Council Approval. The City Council of the City of San Carlos approved this Ordinance for placement on the November 6, 2018 ballot by Resolution adopted by a two-thirds vote of all members. * * * * * This Ordinance was introduced by the City Council of the City of San Carlos on the 11 th day of June, 2018, and was submitted to the People of the City of San Carlos at the November 6, 2018 election. It was adopted by the following vote of the People: YESES: NOES: Adopted as an Ordinance of the City of San Carlos at a regular meeting of the City Council held the day of, 2018, by Declaration of the results of the November 6, 2018, by the following vote of the City Council of the City of San Carlos: AYES COUNCILMEMBERS: NOES COUNCILMEMBERS: ABSTAIN COUNCILMEMBERS:
7 ABSENT COUNCILMEMBERS: APPROVED: CITY CLERK of the City of San Carlos MAYOR of the City of San Carlos _
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