RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO
CALLING AND ORDERING THE SUBMISSION TO THE QUALIFIED
ELECTORS OF THE CITY OF EAST PALO ALTO A MEASURE RELATING TO
A PROPOSED ORDINANCE INCREASING THE BUSINESS TAX FROM ONE AND A HALF PERCENT (1.5 %) OF GROSS RECEIPTS ON OWNERS OF RESIDENTIAL RENTAL UNITS TO TWO AND A HALF PERCENT (2.5%) AND
PROHIBITING THE PASS-THROUGH OF THE TAX TO TENANTS
WHEREAS, business taxes for the rental of residential property may be increased by a majority vote of the people, and
WHEREAS, residential rents in East Palo Alto have increased dramatically primarily due to high demand due to East Palo Alto’s location in the center of Silicon Valley, and large number of jobs created nearby, and
WHEREAS, in 1984 the citizens of East Palo Alto passed a strong rent control system which allowed a fair return to owner investment while not permitting large increases to the residents but changes in state law in 1999 weakened East Palo Alto’s system by imposing “vacancy decontrol” on rent stabilized apartments, allowing landlords to raise rents without limitation whenever a new renter moves in, and WHEREAS, as a result of “vacancy decontrol” and unprecedented market forces, real (inflation-adjusted) rents in East Palo Alto have increased and renters are paying more in rent, over and above the inflation adjustment for what is necessary for a fair return, and WHEREAS, dramatically increased rents transfer income from East Palo Alto residents to landlords of large rental properties, the majority of whom live outside of East Palo Alto, creating hardships for low and moderate-income tenants, draining the economic health of the community and increasing the need for public services of all kinds, including affordable housing and homelessness prevention, and
WHEREAS, by increasing the business tax on high residential rents, and applying the increase to all residential rental units, this measure will recapture a part of the rental income stream for the benefit of the entire community, and WHEREAS, a Consolidated General Municipal Election on Tuesday, November 8, 2022 has been called by Resolution Nos. ---and ---, adopted on ---- 2022,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO THAT:
SECTION 1. The City Council pursuant to its right and authority, does order to be submitted to the voters at a General Municipal election the following question:
“Shall the current City of East Palo Alto business tax of 1.5% of gross receipts on landlords with five or more residential rental units, which cannot be passed on to tenants, be set at 2.5% of gross receipts for all residential rental units, until terminated by voters or reduced by Council, raising approximately $1,480,000 annually for general government use, such as programs to increase affordable housing, provide tenant rental support and protect local residents from homelessness, be adopted?” YES
NO
SECTION 2. The full text of the proposed measure submitted to the voters is attached as Exhibit A to this Resolution, which is incorporated herein by this reference. To become effective, two-thirds of the City Council must vote to place the measure on the ballot and a majority of the voters voting on the measure must vote in the affirmative. The method of collection of the tax would be as specified in relevant sections of Chapter 5.04 of the Municipal Code governing the collection of business licenses taxes.
SECTION 3. The City Council hereby requests the San Mateo County Registrar of Voters to provide all services necessary to conduct the Election and to conduct and canvass the results of the Election. The City will reimburse San Mateo County for the actual cost incurred in conducting the election when the work is completed and upon receipt of a bill stating the amount due as determined by the elections official.
SECTION 4. In all particulars not recited in this Resolution, the election shall be held and conduced as provided by law for holding municipal elections.
SECTION 5. Notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, for and a manner as required by law. The hours during which the polling places for the Election shall be open shall be the hours established for the Consolidated Municipal Election.
SECTION 6. The City Clerk is hereby directed to do all things required by law to effectuate the Consolidated General Municipal Election, and to present the measure submitted herein to the electorate, including, but not limited to, required publications, postings, noticing and filings.
SECTION 7. Pursuant to California Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a copy of this resolution 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 o the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk within fifteen (15) days of the adoption of this Resolution.
SECTION 8. Arguments for and against, not to exceed 300 words in length may be filed consistent with Elections Code Section 9282 requirements. The City Council declines, pursuant to the provisions of Section 9285 of the Elections Code to permit rebuttal arguments.
SECTION 9. The City Clerk is herby directed to file a certified copy of this Resolution with the San Mateo County Board of Supervisors and the San Mateo County Registrar of Voters.
ADOPTED this --
th day of --- 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
SIGNED:
Ruben Abrica, Mayor
ATTEST: APPROVED AS TO FORM:
James Colin, Acting City Clerk Valerie J. Armento, Interim City Attorney