In addition, there were four (4) applications the subcommittee determined did not successfully meet the guidelines above.
Note – Applications from the Agua Caliente Elementary School and Wyld Womxn are being referred to the Arts Commission for consideration.
FISCAL IMPACT:
Funding of $70,000 for the grant awards is included in the adopted budget for FY 2023/2024 approved budget.
FIVE-YEAR STRATEGIC PLAN:
Goal C- Fiscal Stability and Sustainability
Action C-4 Allocate resources necessary to achieve Council’s Goals and Vision
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Staff Report
City Council
Item No. 7.B
Meeting Date: September 27, 2023
From: Ryan Hunt, Communications and Events Manager
Title: Luchador Brewing Company Brewfest SUP
City Council
RECOMMENDATION:
To approve SUP# 23-009 for the Desert Brewfest event, hosted by Luchador Brewing Company in Downtown Cathedral City.
BACKGROUND:
Luchador Brewing is proposing the inaugural Hoppy Holidays Brew Fest on Saturday, Dec. 10, 2023, and are requesting use of the Community Amphitheater. 3500-4500 attendees are projected, and the time of the event is scheduled from noon to 6 p.m. with teardown/cleanup wrapping up by Sunday, Dec. 11, 2023.
DISCUSSION:
With over 40 beers to sample from 20 local and out-of-town breweries, this event is a beer lover's dream. Enjoy live music from Queen Nation and Metalachi and show off your ugliest sweater for a chance to win prizes. Plus, Luchador Brewing Company is donating a portion of the proceeds to local charities and hosting a toy drive. The business hopes to reach its goal of collecting 200 gifts for children in need.
FISCAL IMPACT:
As a third-party event, the applicant must submit all necessary payments ($510 Special Use Permit application fee) and documentation to the City of Cathedral City prior to the event. This also includes the $5,000 rental fee established for for -profit events. With the event organizers responsible for cleanup and agreeing to hire private security, they expect the utilization of city staff to be limited to our Communications & Events staff.
Since this would be a new event in Cathedral City, the economic impact is unknown.
However, Communications & Events sees this as an opportunity to draw more foot traffic downtown, to provide affordable entertainment to residents and visitors and to increase customers frequenting our restaurants and small businesses in the downtown area.
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FIVE-YEAR STRATEGIC PLAN:
Action F-6: Promote additional community events and celebrations.
ATTACHMENTS:
Special Use Permit Downtown-Signed
PastedGraphic-2
Luchador_BrewFest 23-V8
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(Staff Use Only)
Case No.:
Related Files:
CITY OF CATHEDRAL CITY
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
(760) 770-0396 – Phone
(760) 770-0399 - Fax
SPECIAL USE PERMIT FOR DOWNTOWN CATHEDRAL CITY
Please Read: It is advisable to submit applications for review 60 days prior to commencement of the use or event to ensure adequate review of the application. We must have a minimum of 30 days prior to the event. If you have any questions while completing this application, please ask a member of the Planning Department for assistance. In addition to this application, you must reserve a date for your event with the Communications/Events Manager. For recurring events, a schedule must be submitted every 3 months. In order for the City to process a Special Use Permit Application, the application fee must be submitted with the completed application. Depending on the type of event, you may also be required to provide a Clean- up/Damage Deposit. Please review the Downtown Fee Schedule for event use in the downtown area. The appropriate fee must be paid prior to the event. Incomplete applications will not be accepted (or process may be delayed). (PLEASE PRINT OR TYPE)
Name of Event:
__________________________________________________________________________________________
CHECK TYPE OF EVENT
_____ Festival
_____ Parade / Race / Marathon
_____ Concert / Performance
_____ Art Show / Outdoor Market
_____ Political Rally / Protest
_____ Other _________________(type)
AREA OF DOWNTOWN CATHEDRAL CITY TO USE (check all that apply) _____ Civic Center Plaza
_____ Civic Center Paseo
_____ Town Square Park
_____ Amphitheater Park
_____ Festival Lawn
_____ Festival Lawn Annex
_____ Avenida Lalo Guerrero
_____ George Montgomery Trail
_____ City Council Chambers
_____ 3 rd Floor Parking Structure
_____ City Employee Parking Lot
Desert Brewfest: Hosted by Luchador Brewing Company
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Attachment: Special Use Permit Downtown-Signed (3918 : Luchador Brewing Company Brewfest SUP)
DATE(S) OF EVENT: ___ /___ /___ through ___ / ___ / ___ HOURS OF EVENT: ___ :___ AM/PM through ___:___ AM/PM (If multiple days, please indicate dates and times below)
_____________________________________________________________________________________ _____________________________________________________________________________________ EVENT SET-UP DATE: ___ / ___ /___ TIME: ___ : ___ AM/PM __ __ ___ ___ __TEAR DOWN DATE: _ / _ / TIME: : _ AM/PM DESCRIPTION OF EVENT (This should be promotional in nature and cannot exceed 250 words): _ EXPECTED ATTENDANCE PER DAY (List all that apply):
DAY 1: _______________ M
orning _______________ Afternoon _______________ Evening DAY 2 _______________ Morning _______________ Afternoon _______________ Evening DAY 3 _______________ Morning _______________ Afternoon _______________ Evening *In accorda
nce to Emergency Preparedness Requirements, events with 1,000 or more attendees requires a minimum of two crowd control managers to properly direct and assist the event attendees in evacuation during an emergency.
Will your
event sell beverages? ______ Yes ______ No
If yes, please know that all events in Downtown Cathedral City must serve Pepsi products and must be purchased through the City of Cathedral City. Please contact Chris Parman (760) 770-0396 for more details.
Is your event open to the general public? _____ Yes _____ No Will your event sell concessions or food items? _____ Yes _____ No If yes, please know that the Cathedral City Community Amphitheater Concession Stand has an exclusive operator and has exclusivity on popcorn, kettle korn, regular hot dogs, and candy. 12 23
12 23
10 10
12 23
8 00
12 11
23 10
00 12
00 00
6 3500-4500
09 Join us for the 1st Annual Hoppy Holidays Brew Fest presented by Luchador Brewing Company! With over 40 beers to sample from 20 local and out-of-town breweries, this event is a beer lover's dream. Enjoy live music from Queen Nation and Metalachi and show off your ugliest sweater for a chance to win prizes. Plus, we're donating a portion of the proceeds to local charities and hosting a toy drive. Help us reach our goal of collecting 200 gifts for children in need.
Don't miss this festive and charitable celebration on December 10th at the Cathedral City Amphitheater. Cheers to hoppy holidays!
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Attachment: Special Use Permit Downtown-Signed (3918 : Luchador Brewing Company Brewfest SUP)
Do you have a business license with the City of Cathedral City? _____ Yes _____ No If no, you must obtain an annual business license or a special event business license with the City.
Do you have subcontractors and vendors providing a service or selling a product? _____ Yes _____ No
If yes, each subcontractor and vendor must hold an annual business license or a temporary special event business license with the City.
Do you or a vendor of yours plan to serve or prepare food? _____ Yes _____ No If yes, you must obtain proper permits from Riverside County Department of Environmental Health.
If yes, the Cathedral City Fire Department life safety / fire inspections must be conducted prior to food being served. Call (760) 770-8200 Mon. - Thurs. 7:00 a.m. to 6:00 p.m. to schedule inspections.
Will alcohol be served? _____ Yes _____ No
If yes, you must obtain proper permits from California Department of Alcohol Beverage Control.
If yes, you must obtain Liquor Liability Insurance naming the City of Cathedral City, 68-700 Avenida Lalo Guerrero, Cathedral City, CA 92234 as an additional insured.
If yes, you must have a minimum of one security officer checking identifications for proper age, one security officer per entrance and exit, and one security guard for crowd monitoring (a minimum of three security guards during all alcohol serving times).
If yes, who will be pouring and serving the alcohol? ___________________________________ ______________________________________________________________________________ Will your event utilize tents or canopies? _____ Yes _____ No If yes, proper permits must be obtained by the Cathedral City Fire Department and life safety / fire inspections must be conducted prior to their use. Call (760) 770-8200 Mon. - Thurs. 7:00 a.m. to 6:00 p.m. to schedule inspections.
The organizer of the event must ensure that all tents and canopies are properly weighted against wind gusts.
Will your event utilize bouncy houses, inflatables, slides, amusement rides or hot air balloons? _____ Yes _____ No
If yes, the Cathedral City Fire Department life safety / fire inspections must be conducted prior to their use. Call (760) 770-8200 Mon. - Thurs. 7:00 a.m. to 6:00 p.m. to schedule inspections.
If yes, you must obtain liability Insurance denoting coverage for inflatables and naming the City of Cathedral City, 68-700 Avenida Lalo Guerrero, Cathedral City, CA 92234 as an additional insured.
If hot air balloons, each hot air balloon must obtain insurance of no less than a $1 million in liability coverage naming the City of Cathedral City, 68-700 Avenida Lalo Guerrero, Cathedral City, CA 92234 Each Brewery
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Attachment: Special Use Permit Downtown-Signed (3918 : Luchador Brewing Company Brewfest SUP)
as an additional insured. A copy of the insurance certificate must be presented to the City before the hot air balloon can be utilized for the event.
Will your event have amplified sound and/or music? _____ Yes _____ No If yes, the City’s policy allows amplified sound and/or music between 7 am and 10 pm Fridays, Saturdays, and certain Sundays if the following Monday is a recognized national holiday. All other days, the hours of amplified sound and/or music are between 7 am and 9 pm. Amplified sound or music should be normalized to 89 decibels at the perimeter of the reserved area.
Will your event bring in a temporary stage, truss rig system, and/or lighting? _____ Yes _____ No
If yes, the stage installer and/or owner must obtain liability insurance of no less than $1 million in coverage that names the City of Cathedral City, 68-700 Avenida Lalo Guerrero, Cathedral City, CA 92234 as an additional insured.
Will your event use searchlights or laser lights? _____ Yes _____ No If yes, searchlights and/or laser lights that shoot above 50 feet in the air need F.A.A. approval as Downtown Cathedral City is under the flight path of Palm Springs International Airport.
Will your event use fireworks or pyrotechnics? _____ Yes _____ No If yes, proper permits must be obtained by the Cathedral City Fire Department and life safety / fire inspections must be conducted prior to their use. Call (760) 770-8200 Mon. - Thurs. 7:00 a.m. to 6:00 p.m. to schedule inspections. Additional liability insurance must be obtained.
SECURITY, PUBLIC SAFETY, AND SANITATION
Are you hiring security for your event? _____ Yes _____ No If yes, the security company must have a valid Private Patrol Operator’s License issued by the State of California. A copy of the license must be presented to the City prior to the event.
Please describe your security plan including crowd control, internal security or venue safety, age identification checks (if applicable) and or attach your plan to this application. _____________________________________________________________________________________
_____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ • Please note that if you plan to use Cathedral City Police Department, the billable rate for police officers is $135 per hour per officer. CCPD will bill the event directly. Partial or all anticipated payments may be due prior to the event. The availability of CCPD police officers for your event may not be guaranteed without prior notification of at least 30 days.
Not sure yet...
Two Security guards at main entrance doing age checks and 4-6 moving around for crowd control.
We will also have 2 police officers at the front then roving around during event.
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Attachment: Special Use Permit Downtown-Signed (3918 : Luchador Brewing Company Brewfest SUP)
What is your First Aid or Medical Plan for your event?
_____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Do you plan to provide portable toilets? _____ Yes _____ No If yes, the number of portable toilets: __________
If yes, the number of ADA accessible portable toilets: __________ If yes, when are the portable toilets being delivered (Date and time): _____________________ If yes, when are the portable toilets being picked-up (Date and time): ____________________ If yes, will the portable toilets be serviced during your event? _____ Yes _____ No Will your event allow for dogs? _____ Yes _____ No
How do you plan to collect and remove trash and debris during the event?
_____________________________________________________________________________________ _____________________________________________________________________________________ • A clean-up/damage deposit of $600 or more may be required.
EVENT ENTERTAINMENT
Do you plan to have any musical or speaking entertainment for your event? _____ Yes _____ No If yes, please list the names of the band/performers, genre of music:
Name of Band / Performer/ Speaker Genre of Music
________________________ ______________________
________________________ ______________________
________________________ ______________________
________________________ ______________________
________________________ ______________________
A complete list must be provided to the City prior to the event. The City reserves the right to deny the performance of any band or act that has a history of creating public safety concerns. The City also has the right to require additional security and/or insurance coverage at the organizer’s expense for acts that have a history of creating public safety concerns. 23 2
12/11/23
DJ Carlos
All Genres
Queen Nation
We will have a first aid tent with medical professional.
Metalachi
Metal Mariachi band
70's Queen Tribute Band
We will have a janitorial crew remove and put any extra trash in the rented trash recepticals. 12/9/23
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Attachment: Special Use Permit Downtown-Signed (3918 : Luchador Brewing Company Brewfest SUP)
APPLICANT AND HOST ORGANIZATION
Host Organization: ____________________________________________________________________ Chief Officer of Host Organization: _______________________________________________________ Host Organization’s Website: ____________________________________________________________ Applicant Name: _____________________________________________________________________ Address Street:
_______________________________________________________________________ City: _______________________________ State: _________________ Zip: ______________ Telephone Prior to the Event: (_____) ______ - ____________ During Event: (_____) ______ - ____________ Phone number of on-site representative who can be contacted during the event, for emergencies or event coordination.
Fax: (_____) ______ - ____________
Email Address: __________________________________________________________ Previous Events managed or operated by the Host Organization and/or Applicant:
_____________________________________________________________________________________ _____________________________________________________________________________________
AFFIDAVIT OF APPLICANT
I certify that the information contained in the foregoing application is true and correct to the best of my knowledge and belief that I have read, understand and agree to abide by the rules and regulations governing the proposed Special Event under the Cathedral City Municipal Code and I understand that this application is made subject to the rules and regulations established by the City Council and/or the City Manager or the City Manager’s designee. Applicant agrees to comply with all other requirements of the City, County, State, Federal, and any other applicable entity which may pertain to the use of the Even venue and the conduct of the Event. I agree to abide by these rules, and further certify that I, on behalf of the Host Organization, am also authorized to commit that organization, and therefore agree to be financially responsible for any costs and fees that may be incurred by or on behalf of the Event to the City of Cathedral City.
Printed Name of Applicant / Host Organization ______________________________________________ Title ___________________________________________________________________________ Signature ___________________________________________________________________________ Date _____________________________
Jaime Benson - Luchador Brewing Company
www.luchadorbrew.com
Jaime Benson
Cathedral City
CA
92234
68510 E. Palm Canyon Drive, #140
714
404
3412
714
404
3412
[email protected]
Jaime Benson
Owner
8/26/23
Mi Chavella Fest
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Attachment: Special Use Permit Downtown-Signed (3918 : Luchador Brewing Company Brewfest SUP)
SUBMITTAL REQUIREMENTS:
_____ Application Fee: $510 – payable to “City of Cathedral City” _____ Non-profit certification (if applicable)
_____ Clean-up / Damage Deposit (if applicable)
_____ Copy of site plan using map attached to this application (show stage, fencing, canopy/tent placement, food vendor locations, merchandise vendor locations, portable restroom locations, generators, etc….)
_____ Provide all necessary insurance coverages (must be submitted prior to the event) _____ Proof of Insurance with a minimum of $1,000,000 in liability coverage naming City of Cathedral City, 68-700 Avenida Lalo Guerrero, Cathedral City 92234 as an additional insured (must be submitted prior to the event)
_____ Proof of all applicable licenses and permits required by local, state and federal agencies (must be submitted prior to the event)
_____ Proof of Cathedral City Fire Department inspections and permits, if applicable (must be submitted prior to the event)
______ Acknowledge that applicant cannot hang any object (lights, speakers, cabling, etc.) from the pipe grid above the amphitheater’s stage floor.
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Attachment: Special Use Permit Downtown-Signed (3918 : Luchador Brewing Company Brewfest SUP)
Downtown Map (Please mark the area you will be using)
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Cathedral City Page 1 of 2 Printed on 9/21/2023
Staff Report
City Council
Item No. 7.C
Meeting Date: September 27, 2023
From: Anne Ambrose, Assistant City Manager
Title: Resolution of Opposition to Initiative No. 21 -0042A1, A November 2024 Ballot Measure Jeopardizing Cities' Ability to Provide Essential Services and Infrastructure
City Council
RECOMMENDATION:
Approve a resolution of opposition to Initiative No. 21-0042A1, a November 2024 Ballot Measure jeopardizing Cities' ability to provide essential services and infrastructure.
BACKGROUND:
In 2018, the California Business Roundtable and American Beverage Association circulated an initiative for the November 2018 ballot. The proposed initiative would have drastically limited local revenue authority. The League of California Cities and its coalition opposed this initiative. Ultimately, the proponents withdrew the initiative from the ballot in June 2018.
In January 2022, the California Business Roundtable filed Initiative No. 21 -0042A1 to impose new and stricter rules than the measure filed in 2018 related to the raising of state and local taxes, fees, assessments, and property-related fees.
In February 2023, the California Secretary of State announced Initiative No. 21 -0042A1 qualified for the November 2024 ballot. The League of California Cities is calling for cities to take action to oppose the initiative and have provided a summary and fiscal analysis on the impacts of Initiative No. 21-0042A1 (Attachment 1).
DISCUSSION:
If initiative No. 21 -0042A1 is passed by voters, it can have very detrimental effects on local governments’ ability to charge fees or pass local tax measures to ensure sufficient revenues to provide local government services. CaliforniaCitiesFinance.Com provides a comprehensive analysis of the impact this initiative could have on cities. (Attachment 2).
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FISCAL IMPACT:
There is no fiscal impact associated with adopting the proposed resolution.
FIVE-YEAR STRATEGIC PLAN:
Goal C: Fiscal Stability and Sustainability
Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.
ATTACHMENTS:
Resolution 2023 Opposition Initiative 21-0042A1
League of California Cities- Taxpayer Protection and Government Accountability Act Initiative No. 21-0042A1
CaliforniaCityFinance.com- Fiscal and Program Effects Initiative 21-0042A1 of Local Governments
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RESOLUTION NO. 2023-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY, CALIFORNIA, OPPOSING INITIATIVE 21 -0042A1 AND JOINING THE NO ON INITIATIVE 21 -0042A1 COALITION, A GROWING
COALITION OF PUBLIC SAFETY, EDUCATION, LABOR, LOCAL
GOVERNMENT, AND INFRASTRUCTURE GROUPS THROUGHOUT
THE STATE
WHEREAS, an association representing California’s wealthiest corporations and developers is spending millions to push a deceptive proposition aimed for the November 2024 statewide ballot; and
WHEREAS, the measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and infrastructure, and would limit voter input by prohibiting local advisory measures where voters provide direction on how they want their local tax dollars spent; and
WHEREAS, the measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure and our environment; and
WHEREAS, the measure may make it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods; and
WHEREAS, the measure puts billions of dollars currently dedicated to local services at risk and could force cuts to fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more; and
NOW THEREFORE, BE IT RESOLVED that the City of Cathedral City opposes Initiative 21-0042A1;
BE IT FURTHER RESOLVED, that the City of Cathedral City will join the No on Initiative 21-0042A1 coalition, a growing coalition of public safety, education, labor, local government, and infrastructure groups throughout the state.
We direct staff to email a copy of this adopted resolution to the League of California Cities at [email protected].
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Attachment: Resolution 2023 Opposition Initiative 21-0042A1 (3914 : Resolution Opposing Initiative No. 21-0042A1) PASSED, APPROVED AND ADOPTED this 27th day of September, 2023, by the following vote:
Ayes:
Noes:
Absent:
Abstain:
Rita Lamb, Mayor
ATTEST:
Tracey R. Hermosillo, City Clerk
APPROVED AS TO FORM:
Eric S. Vail, City Attorney
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Attachment: Resolution 2023 Opposition Initiative 21-0042A1 (3914 : Resolution Opposing Initiative No. 21-0042A1) 1 The Taxpayer Protection and Government Accountability Act Initiative No. 21-0042A1
October 21, 2022
Effective date
: Any new or increased tax or fee adopted by the Legislature, a city council, or the local voters after January 1, 2022, must comply with the Act’s new rules.
State taxes
• All new a
nd increases in state taxes will require majority voter approval. • Prohibits property tax “surcharge” (increase). Prohibits allocation of property tax to the state.
Local taxes
• New
requirements for voter approval
o when applied to territory is annexed.
o when existing tax is applied to a new service or product, for example utility user tax (UUT) to new service.
• New
or increased taxes adopted after January 1, 2022, must include a sunset date.
Fees and charges
• S
tate and cities have burden of proving by “clear and convincing evidence” that a fee/charge is not a tax; that the amount is reasonable; and that it does not exceed “actual cost.”
• Elimination of the “specific benefit conferred” or “privilege granted” exception makes it more likely that franchise fees will be considered taxes.
The state and cities issue franchises to oil companies, utilities, gas companies, railroads, garbage companies, cable companies, and other corporations. • Fees and charges for services and permits may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” Examples include planning services, excavation and encroachment permits, preparation of candidate statement, and permit parking.
• No fee or charge or exaction regulating vehicle miles traveled can be imposed as a condition of property development or occupancy.
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Attachment: League of California Cities- Taxpayer Protection and Government Accountability Act Initiative No. 21-0042A1 (3914 : Resolution 2 Fines and penalties [administrative enforcement of state law and municipal codes]
• R
equires voter approval of fines and penalties for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties. Examples include nuisance abatement, organic waste reduction requirements, and failure to maintain a vacant property.
Voters
• Local advisory measures are prohibited. No measure may appear on the ballot asking for approval for a general tax that would indicate that the revenue from the general tax will, could, or should be used for a specific purpose.
• Overturns Upland decision so taxes proposed by initiative are subject to the same rules as taxes placed on the ballot by a city council. • Voters may not amend a City Charter to impose, extend, or increase a tax or fee.
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Attachment: League of California Cities- Taxpayer Protection and Government Accountability Act Initiative No. 21-0042A1 (3914 : Resolution CaliforniaCityFinance.Com
Fiscal and Program Effects of
Initiative 21-0042A1 on Local Governments
If Initiative 21-0042A1 is placed on the ballot and passed by voters, it will result in:
Over $20 billion of local government fee and charge revenues over 10 years placed at heightened legal pe
ril. Related public service reductions across virtually every aspect of city, county, special district, and s
chool services especially for drinking water, sewer sanitation, and public health and safety. About $2 billion of revenues each year from fees and charges adopted after January 1, 2021 subject to legal peril.1
Over $2 billion dollars of annual revenues from dozens of tax measures approved by voters between J
anuary 1, 2022 and the effective date of the act2 subject to additional voter approval if not in compliance wit
h the initiative.
Indeterminable legal and administrative burdens and costs on local government from new and more em
powered legal challenges, and bureaucratic cost tracking requirements. The delay and deterrence of municipal annexations.
Substantially higher legal and administrative cost of public infrastructure financing which will delay and det
er new residential and commercial development.
Service and infrastructure declines including in fire and emergency response, law enforcement, public health, drinking water, sewer sanitation, parks, libraries, public schools, affordable housing, homelessness prevention and mental health services.
1. Local Government Taxes and Services Threatened
With regard to taxes, Initiative 21-0042A1:
Prohibits advisory, non-binding measures as to use of tax proceeds on the same ballot. o Voters may be less informed and more likely to vote against measures. Eliminates the ability of special tax measures proposed by citizen initiative to be enacted by majority voter approval (Upland).3
o
Because the case law regarding citizen initiative special taxes approved by majority vote (Upland) is so recent, it is unknown how common these sorts of measures might be in the future. This initiative would prohibit such measures after the effective date of the initiative. Any such measures adopted after January 1, 2022 through the effective date of the Act should it pass would be void a year after the effective date of the initiative.
Requires that tax measures include a specific duration of time that the tax will be imposed. This seems to require that all tax increases or extensions contain a sunset (end date). o This would require additional tax measures to extend previously approved taxes. A city charter may not be amended to impose, extend, or increase a tax might interfere with the ability of cities that do not already have such authority in their charters to adopt Property Transfer Taxes. o There are no more than a few of these every few years, but it is a valuable tax for those that adopt it.
1 Assumes fee increases since January 1, 2022 would be subject to possible legal challenge if not adopted in compliance with the Initiative.
2 The effective date of the initiative would be sometime in December 2024, the date the California Secretary of State certifies the election results of the November 5, 2024 election.
3 Unlike the initiative 17-0050, this initiative does not eliminate that ability of cities and counties to adopt general taxes by majority voter approval.
2217 Isle Royale Lane • Davis, CA • 95616-6616
Phone: 530.758.3952 • Fax: 530.758.3952
R
ev . January 14, 2023
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Attachment: CaliforniaCityFinance.com- Fiscal and Program Effects Initiative 21-0042A1 of Local Governments (3914 : Resolution Opposing – 2 – re v Janua ry 14, 2023
Ca
liforniaCityFinance.com
Requires that a tax measure adopted after January 1, 2022 and before the effective date of the initiative t
hat was not adopted in accordance with the measure be readopted in compliance with the measure or will be void twelve months after the effective date of the initiative. o
If past election patterns and elections in 2022 are an indication, over 200 tax measures approving m
ore than $2 billion annual revenues to support local public services would not be in compliance and
would be subject to reenactment. Most will be taxes without a specific end date and special t
axes (including parcel taxes). Because there is no regularly scheduled election within the 12 m
onths following the effective date of the initiative, the measures would each require declaration of
emergency and unanimous vote of the governing board to be placed on a special election ballot
within a year for approval or the tax will be void after that date. I would expect most to s
ucceed, but some will not, in particular citizen initiative majority vote special taxes which would hav
e to meet a higher voter approval threshold to continue. Requires voter approval to expand an existing tax to new territory (annexations). This would require addit
ional tax measures and would deter annexations and land development in cities. o If a tax is "extended" to an annexed area without a vote after January 1, 2022, it will be void 12 m
onths later until brought into compliance. Because there is no regularly scheduled election wit
hin the 12 months following the effective date of the initiative, such extensions would each r
equire unanimous vote of the agency board to be placed on a special election ballot or would be v
oid a year later.
1.a. Number of Measures and Value of Local Taxes at Risk4 Over a hundred local measures were approved in 2022 that likely do not comply with the provisions of Initiative 21-0042A1. Nearly $2 billion of annual revenues from these voter approved measures will cease a year after the e
ffective date of the measure, reducing the local public services funded by these measures. We can expect a s
imilar volume of measures in 2024 and a similar volume of non-compliance. So the combined total of annual loc
al funding directly affected by Initiative 21-0042A1 due to its retroactivity provision is about $4 billion.
Citizen Initiative Special Taxes in 2022.
Special taxes placed on the ballot by citizen initiative and approved after January 1, 2022 by a majority but less than two-thirds of the voters are out of compliance with Initiative 21-0042A1.
On June 7, 2022, there were three local special tax measures placed on the ballot by citizen initiative. Two failed to get majority voter approval. A one percent transactions and use tax (sales tax) for the John C. Fremont Healthcare District in Mariposa County received 69.6 percent approval, over the two thirds needed for any special tax under California Constitution Article XIIIC. So this measure was passed in compliance with Initiative 21- 0042A1.
On November 8, 2022, there were 14 local special taxes placed on the ballot by citizen initiative. Seven of these 4 Source: Compilation and summary of data from County elections offices.
June 2022 Initiative Special Taxes - majority voter approval Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
John C. Fremont
Healthcare District Mariposa Measure N Transactions
& Use Tax 1 cent $ 150,000 hospital 40yrs 69.6% PASS
County of Kings Kings Measure F Transactions
& Use Tax 1/2 cent $ 11,700,000 fire none 37.6% FAIL
Manhattan Beach
USD Los Angeles Measure A School Parcel
Tax $1095/yr $ 12,000,000 s chools 12yrs 31.2%
FAIL
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measures failed with less than majority voter approval. The other seven measures received majority, but less than two-thirds, voter approval. These measures passed under current law but are out of compliance with Initiative 21- 0042A1. Taken together these seven taxes will provide estimated annual revenues of from $900,000 to $1.4 billion in support of parks and recreation, zoo, library, affordable housing, transportation, homelessness prevention, and schools in these communities.
N
on-Specific Tax Durations in 2022
Voters approved 106 measures in June 2022 (10) and November 2022 (96) that do not provide a specific duration of time that the tax will be imposed (end date). Typically, the ballot titles for these measures state that the tax would be imposed “until ended by voters.” Four of these measures also did not include any estimate of the annual revenues that the tax would generate, another violation of initiative 21-0042A1. Taken together, these approved local measures generate $561 million per year that will expire a year after the effective date of the initiative if Initiative 21-0042A1 passes.
November 2022 Initiative Special Taxes - majority voter approval Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
Crockett Com m unity
Services District Contra Costa Measure L Parcel Tax $50/parcel $ 60,000 parks/recr none 62.8% PASS Oakland Alameda Measure Y Parcel Tax $68/parcel $ 12,000,000 zoo 20yrs 62.5% PASS County of Mendocino Measure O Transactions
& Use Tax
1/8 cent then 1/4
cent in 2027 $ 4,000,000 library none 60.8% PASS
Los Angeles Los Angeles Measure ULA Property
Transfer Tax
4% if >$5m, 5.5%
if >$10m $600 m to $1.1 b affordable
housing none 57.3% PASS
County of Sacram ento Measure A Transactions
& Use Tax same 1/2 cent $ 212,512,500 transportati
on
40yrs 55.3% PASS
San Francisco Proposition M B usiness
O perations Tax
$2500-$5000/
vacant resid unit $ 20,000,000 housing 30yrs 54.5% PASS Santa Monica Los Angeles Measure GS Property
Transfer Tax
$56/$1000 if
>$8m $ 50,000,000
schools,
hom elessne
ss, afford.
housing
none 53.3% PASS
Total $900,000 to
$1.4 billion
Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
County of Calaveras Measure A Transactions
& Use Tax 1 cent $ 5,000,000 fire none 49.4% FAIL
South San Francisco
(for Schools) San Mateo Measure DD School Parcel
Tax $2.50/sf $ 55,900,000 schools none 47.2%
FAIL
County of Fresno (for CSU ) Measure E Transactions
& Use Tax
1/5 ct,
1/40 ct (Reedley) $ 36,000,000 Calif State
Univ 20yrs 46.9% FAIL
Santa Cruz Santa Cruz Measure N Parcel Tax $6k/v acant SFU x xx vacant property xxx 44.2% FAIL
County of Monterey Measure Q Parcel Tax $49/parcel $ 5,500,000 childcare 10yrs 41.1% FAIL San Francisco City
College
San
Francisco Measure O School Parcel
Tax $150/sfu $ 37,000,000 schools 10yrs 36.7%
FAIL
Morro Bay San Luis
Obispo Measure B Parcel Tax $120+/parcel $ 680,000 harbor none 36.0% FAIL
Inverness Public
Utility District Marin Measure O Parcel Tax $0.20/s f,
$150/vacant $ 276,000 fire none 27.0%
FAIL
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Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Ra te
Annual
Re venue Us e Sunset YES%
Oakland Alameda Measure T B usi ness Tax
Ge n e ra lvarious $ 20,900,000 none 71.4% PASS
Culver City Los Angeles Measure BL B usi ness Tax
Ge n e ra lvarious $ 10,000,000 none 60.5% PASS
El Segundo Los Angeles Measure BT B usi ness Tax
Ge n e ra lvarious $ 3,000,000 none 51.2% PASS
Pico Rivera Los Angeles Measure AB B usi ness Tax
Ge n e ra lvarious $ 5,800,000 none 75.5% PASS
Santa Ana Orange Measure W B usi ness Tax
Ge n e ra lvarious neutral none 64.8% PASS
Tracy San Joaquin Measure B B usi ness Tax
Ge n e ra lvarious $ 3,200,000 none 72.6% PASS
Burlingame San Mateo Measure X B usi ness Tax
Ge n e ra lvarious $ 2,500,000 none 75.1% PASS
Los G atos Santa Clara Measure J B usi ness Tax
Ge n e ra lvarious $ 1,100,000 none 53.4% PASS
Santa Clara Santa Clara Measure H B usi ness Tax
Ge n e ra l
$45/employee,
$15/rental unit $ 6,000,000 none 59.5% PASS
Brisbane San Mateo Measure O B usi ness Tax
lodging bus n $2.50/rm/day $ 250,000 none 69.2% PASS
East Palo Alto San Mateo Measure L B usi ness Tax
resid. rentals
2.5%
grossRcpts $ 1,480,000 none 69.9% PASS
County of Santa Cruz Unincorporated Measure C Bus n Tax - disp cups 12.5cents/cup $ 700,000 none 68.2% PASS
South L ake Tahoe El Dorado Measure G Bus n Tax
Cannabis
6% retail,
manufacturing $ 950,000 none 62.9%
PASS
McFarland Kern Measure O Bus n Tax
Cannabis
8% of gross
receipts retail, $ 1,800,000 none 63.5%
PASS
Avenal Kings Measure C Bus n Tax
Cannabis
$25+/sf or
15% gr rcpts $ 600,000 none 61.8%
PASS
Baldwin Park Los Angeles Measure CB Bus n Tax
Cannabis
4%
grossRcpts $ 300,000 none 51.3%
PASS
Claremont Los Angeles Measure CT Bus n Tax
Cannabis
4%-7% gr
rcpts, $1- $ 500,000 none 61.1% PASS
County of Los Angeles Unincorporated Measure C Bus n Tax Cannabis
4% gross
receipts retail, $ 15,170,000 none 60.1% PASS
Cudahy Los Angeles Measure BA Bus n Tax
Cannabis
15%
grossRcpts $ 3,600,000 none 54.0%
PASS
El Segundo Los Angeles Measure Y Bus n Tax
Cannabis
10%
G rossR cpt, $ 1,500,000 none 72.8%
PASS
Hermosa Beach Los Angeles Measure T Bus n Tax
Cannabis
10%
G rossR cpt, $ 1,500,000 none 67.6%
PASS
Lynwood Los Angeles Measure TR Bus n Tax
Cannabis 5%to10% $ 3,000,000 none 66.4%
PASS
Santa Monica Los Angeles Measure H M Bus n Tax
Cannabis
10% gross
Rcpts $ 5,000,000 none 66.4%
PASS
South E l Monte Los Angeles Measure C M Bus n Tax
Cannabis
6% special
ex cise tax on $ 126,000 none 53.7%
PASS
Monterey Monterey Measure J Bus n Tax
Cannabis 6% grossRcpt $ 1,300,000 none 65.2%
PASS
Pacific G rove Monterey Measure N Bus n Tax
Cannabis 6% grossRcpt $ 300,000 none 70.8%
PASS
Huntington Beach Orange Measure O Bus n Tax
Cannabis
6% retail, 1%
other $ 600,000 none 54.7%
PASS
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Notes
?= Ballot measure title did not include an estimate of annual revenues, also not in compliance with Initiative 21-0042A1. n/a*= Arcadia Measure SW passed but sports betting remains illegal after the failure of Propositions 26 and 27 on the November statewide ballot.
Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Us e Sunset YES%
L aguna Woods Orange Measure T Bus n Tax
Cannabis
4%-10% of
gross recei pts $ 750,000 none 61.1% PASS
Corona Riverside Measure G Bus n Tax
Cannabis
9% of gross
receipts for $ 5,000,000 none 61.6%
PASS
Montclair San Bernardino Measure R Bus n Tax
Cannabis
7%
grossRcpts $ 3,500,000 none 70.3%
PASS
County of San Diego Unincorporated Measure A Bus n Tax
Cannabis
6% retail, 3%
distribution, $ 5,600,000 none 57.4%
PASS
Encinitas San Diego Measure L Bus n Tax
Cannabis
4% to 7% of
gross recei pts $ 1,400,000 none 65.1% PASS
Healdsburg Sonoma Measure M Bus n Tax
Cannabis 8% grossRcpt $ 500,000 none 72.7% PASS
Exeter Tulare Measure B Bus n Tax
Cannabis
10% retail and
other, $10/sf ? none 66.5%
PASS
Tulare Tulare Measure Y Bus n Tax
Cannabis
10% retail and
other, $10/sf ? none 65.2%
PASS
Woodland Y olo Measure K Bus n Tax
Cannabis
10%
grossRcpts ? none 66.2%
PASS
Redlands San Bernardino Measure J Bus n Tax
Distrib centers
from $0.047/sf
to $0.105/sf $ 530,000 none 53.5% PASS
Arcadia Los Angeles Measure S W Busn Tax
Sports Betting
5%
grossRcpts n/a* none 63.9% PASS
Albany Alameda Measure K ParcelTax $0.074+/sf $ 1,950,000 fire/EMS n o n e 76.0% PASS Cameron Park Airport
District El Dorado Measure J ParcelTax by $600 to
$900/parcel $ 117,900 airport/
streets none 78.2%
PASS
Highlands Village
L ighting Benefit Zone El Dorado Measure L ParcelTax $140+/parcel $ 10,920 streets none 86.3% PASS
Knolls Property
Owners CSD El Dorado Measure P ParcelTax by $300+ to
$600+/parcel $ 8,400 streets none 75.5%
PASS
Sundance Trail Zone of
Benefit El Dorado Measure C ParcelTax $600+/yr $ 24,000 roads none 73.2% PASS South Pasadena Los Angeles Measure L L ParcelTax x x x ? library none 86.2% PASS River Delta Fire District Sacramento Measure H ParcelTax $90/yr $ 130,000 fire none 72.1% PASS Emeryville Alameda Meas ure O PropTrans fTax $15/$1000 if $1m-$2m, $ 5,000,000 none 71.6% PASS
San Mateo San Mateo Measure CC PropTransfTax by 1% to 1.5% if >$10m $ 4,800,000 none 71.8% PASS
Alameda Alameda Measure F TOT by 4% to 14% $ 910,000 none 59.2% PASS Clovis Fresno Measure B TOT by 2% to 12% $ 500,000 none 69.7% PASS Kerman Fresno Measure G TOT 10% $ 40,000 none 62.3% PASS Trinidad Humboldt Measure P TOT by 4% to 12% $ 65,000 none 77.6% PASS Imperial Imperial Measure G TOT by 4% to 12% $ 600,000 none 56.2% PASS Arcadia Los Angeles Measure HT TOT by 2% to 12% $ 730,000 none 54.1% PASS Santa Monica Los Angeles Measure CS TOT by 1%, 3%
hom e shares $ 4,100,000 none 73.7% PASS
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Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Us e Sunset YES%
Anaheim Orange Measure J TOT online travel
companies $ 3,000,000 none 59.2% PASS
La Palma Orange Measure P TOT by 4% to 12% $ 200,000 none 71.1% PASS Colfax Placer Measure B TOT by 2% to10% $ 29,000 none 73.5% PASS Rocklin Placer Measure F TOT by 2% to 10% $ 300,000 none 59.8% PASS Ros eville Placer Meas ure C TOT by 4% to 10% $ 3,000, 000 none 73.0% PASS Big Bear Lake San Bernardino Measure P TOT by 2% to 10% $ 1,300,000 n one 54.4% PASS Grand Terrace San Bernardino Measure M TOT new 10% $ 250,000 none 51.9% PASS Yucca Valley San Bernardino Measure K TOT by 5% to 12% $ 1,300,000 none 71.9% PASS Im perial Beach San Diego Measure R TOT by 4% to 14% $ 400,000 none 67.4% PASS El Paso de Robles San Luis Obisp oMeasure F TOT by 1% to 11% $ 750,000 none 61.2% PASS Belmont San Mateo Measure K TOT by 2% to 14% $ 600,000 none 79.3% PASS Millbrae San Mateo Meas ure N TOT by 2% to 14% $ 1,500, 000 none 75.8% PASS County of Humboldt Unincorporated Measure J TOT by 2% to 12% $ 3,0 80,000 none 63.3% PASS County of Placer -
North Tahoe TOT Area Measure A TOT by 2% to 10% $ 4,000,000 none 90.0% PASS County of Santa Cruz Unincorporated Measure B TOT by 1% to 12% $ 2 ,300,000 none 69.2% PASS County of El Dorado -
East Slope Tahoe Measure S TOT 2/3 by 4% to 14% $ 2,500,000 none 81.8% PASS Chico Butte Measure H TrUT 1 cent $ 24,000,000 none 52.4% PASS Mendota Fresno Measure H TrUT 1.25 cent $ 493,498 none 57.2% PASS Blue Lake Humboldt Measure R TrUT 1 cent $ 30,000 none 55.4% PASS Rio Dell Humboldt Measure O TrUT 3/4cent $ 400,000 none 53.3% PASS County of Kern unincorporated areas Measure K TrUT 1 cent $ 54,000 ,000 none 50.8% PASS McFarland Kern Measure M TrUT 1 cent $ 579,662 none 62.2% PASS Tehachapi Kern Measure S TrUT 1 cent $ 4,000,000 none 57.2% PASS Avenal Kings Measure A TrUT 1 cent $ 500,000 none 72.5% PASS Sus anville Lass en Meas ure P TrUT 1 cent $ 1,750, 000 none 54.7% PASS Baldwin Park Los Angeles Measure BP TrUT 3/4 cent $ 6,000,000 none 58.1% PASS Malibu Los Angeles Measure M C TrUT 1/2 cent $ 3,000,000 none 52.6% PASS Monterey Park Los Angeles Measure M P TrUT 3/4 cent $ 6,000,000 none 58.5% PASS Torrance Los Angeles Measure SS T TrUT 1/2 cent $ 18,000,000 none 55.0% PASS Larkspur Marin Measure G TrUT 1/4 cent $ 700,000 none 59.4% PASS Sand City Monterey Measure L TrUT by 1/2cent to
1.5cents $ 1,400,000 none 68.7% PASS
Hemet Riverside Measure H TrUT same 1 cent $ 15,000,000 none 58.0% PASS Elk Grove Sacramento Measure E TrUT 1 cent $ 21,000,000 none 54.1% PASS Galt Sacramento Measure Q TrUT 1 cent $ 3,600,000 none 52.4% PASS Colton San Bernardino Measure S TrUT 1 cent $ 9,500,000 none 66.8% PASS Ontario San Bernardino Measure Q TrUT 1 cent $ 95,000,000 none 53.2% PASS Solana Beach San Diego Measure S TrUT 1 cent $ 3,000, 000 none 66.7% PASS Brisbane San Mateo Measure U TrUT 1/2 cent $ 2,000,000 none 63.9% PASS Goleta Santa Barbara Measure B TrUT 1 cent $ 10,600,000 none 64.7% PASS Solvang Santa Barbara Measure U TrUT 1 cent $ 1,600,000 none 63.1% PASS
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Co-temporal Advisory Measures in 2022
At the November 2022 election, there was just one local general tax measure that was accompanied by an advisory measure as to the use of funds. The City of Santa Monica’s Measure DT property transfer tax failed with just 34 percent approval as voters instead chose the citizen initiative Measure GS.
There was also just one such tax use advisory measure on the June 2022 election. Susanville’s voters passed Measure P, a 1 percent transactions and use (sales) tax that generates $1.75 million per year5 for general city services. The measure was accompanied by advisory Measure Q, accompanied the city’s It asked, “If Measure P passes, should the revenues be used to balance the budget to maintain and enhance existing public safety services (police and fire), and provide funding to support street infrastructure improvements and provide funding to support economic development efforts designed to increase businesses, jobs and visitors to Susanville?” Both measures passed. Under Initiative 21-0042A1, the tax will expire a year after the effective date of the initiative (i.e., in December 2025).
1.b. Additional Costs and Public Service Effects of the Tax Provisions Assuming a similar volume of local measures through 2024 as we saw in 2022, there will be over 200 local measures that will need to be redrafted to comply with the Initiative and placed back on the ballot for the taxes to continue after December 2025. The costs of re-drafting, re-placing and re-voting on these measures, previously legally approved by voters, will be in the tens of millions in total statewide.
2. “Exempt Charges” (fees and charges that are not taxes) and Services Threatened With regard to fees and charges adopted after January 1, 2022, Initiative 21-0042A1:
Subjects new fees and charges for a product or service to a new "actual and reasonable test." Subjects fees and charges for entrance to local government pro perty; and rental and sale of loc al gov
ernment property to a new, undefined, “reasonable” test. Allows legal challenge to any tax adopted before the effective date of the initiative and after January 1, 5 The Susanville measure also did not include a specific end date and so is included in the list and totals of those measures.
Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Us e Sunset YES%
Watsonville Santa Cruz Meas ure R TrUT 1/2 cent $ 5,000,000 none 64.4% PASS V allejo Solano Measure P TrUT 7/8 cent $ 18,000,000 none 54.7% PASS Modesto Stanislaus Measure H TrUT 1 cent $ 39,000,000 none 62.8% PASS County of Colusa Measure A TrUT 2/3 1/2 cent $ 2,400,000 EMS none 69.4% PASS Atwater Merced Measure B TrUT 2/3 same 1 cent $ 4,000,000 police/fi re none 73.7% PASS Truckee Nevada Measure U TrUT 2/3 by 1/4 cent to
1/2 cent $ 3,000,000 open space
/ trails none 76.4% PASS
Palo Alto Santa Clara Meas ure L UtilityTrans fer 18% gas $ 7,000,000 none 77.7% PASS Santa Clara Santa Clara Meas ure G UtilityTrans fer 5 % $ 30,000,000 none 84.2% PASS Hercules Contra Costa Measure N UUT 8% $ 3,600,000 none 69.3% PASS Carson Los Angeles Measure U U UUT 2% electr, gas $ 8,000,000 none 78.4% PASS Sebastopol Sonom a Measure N UUT 3.75% (sam e) $ 700,000 none 83.5% PASS
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2022. Such a lawsuit could enjoin (stop) the enactment of the tax pending the outcome of the legal challenge.
Subjects a challenged fee to new, higher burdens of proof if legally challenged.
2.a. Value on New Local Government Fees and Charges at Risk6 Virtually every city, county, and special district must regularly (e.g., annually) adopt increases to fee rates and charges and revise rate schedules to accommodate new users and activities. Most of these would be subject to new standards and limitations under threat of legal challenge. Based on the current volume of fees and charges imposed by local agencies and increases in those fees simply to accommodate inflation, the amount of local government fee and charge revenue placed at risk is about $2 billion per year including those adopted since January 1, 2022. Of $2 billion, about $900 million (45 percent) is for special districts, $800 million (40 percent) is cities, and $300 million (15 percent) is counties. 7 Major examples of affected fees and charges are:
1. Certain water, sanitary sewer, wastewater, garbage, electric, gas service fees.
2. Nuisance abatement charges - such as for weed, rubbish and general nuisance abatement to fund c
ommunity safety, code enforcement, and neighborhood cleanup programs.
3. Emergency response fees - such as in connection with DUI.
4. Advanced Life Support (ALS) transport charges.
5. Business improvement district charges.
6. Fees for processing of land use and development applications such as plan check fees, use permits, design review, environmental assessment, plan amendment, subdivision map changes.
7. Document processing and duplication fees.
8. Facility use charges, parking fees, tolls.
9. Fines, penalties.
10. Fees for parks and recreation services.
2.b. Additional Costs and Public Service Effects of the Fee/Charge Provisions In addition to service delays and disruptions due to fee and charge revenues placed at greater legal risk, there would be substantial additional costs for legal defense. The risk to fees and charges will make infrastructure financing more difficult and will deter new residential and commercial development. ***********
mc
6 Source: California State Controller Annual Reports of Financial Transactions concerning cities, counties and special districts , summarized with an assumed growth due to fee rate increases (not population) of 2 percent annually. 7 School fees are also affected but the amount is negligible by comparison.
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