Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority: Ensure Our Financial and Organizational Health Background
In November 1979, the voters of the State of California approved Proposition 4, commonly known as the Gann Initiative. The proposition created Article XIIIB of the State Constitution designed to limit the growth in appropriations of all entities of government to changes in cost of living and population. Further, in 1980, the State Legislature amended the Government Code to implement the Article XIIIB of the California Constitution. See Government Code Section 7900 et seq. Then, in 1990, the voters of the State of California passed Proposition 111 providing adjustment formulas more responsive to local growth issues, as well as requirement for an annual review of the Gann Limit calculations which is performed by the City’s auditors each fiscal year (collectively, Gann Limit Law). California Constitution, Article XIIIB, Section.
1.5. Proposition 111 changed the annual adjustment factors beginning with the FY 1990-91 Appropriation Limit. After that point, on an annual basis, the local entity may choose between whichever is greater: the change in per capita income or assessed valuation due to nonresidential construction within the City. To determine the population factor, the entity can select the greater of population growth either within the City or the County. Staff determines 621
PUBLIC HEARING ITEM 11.4
the appropriation limit associated with each fiscal year budget. The City Council is required to adopt a limit on appropriations subject to a formula outlined in the State Constitution Article XIIIB.
Analysis
The attached calculation of the appropriation limit follows the formula established in the California Constitution. Not all revenues are restricted by the limit; only those that are referred to as “proceeds of taxes.” Thus, attention must be given to what revenues fall into that category.
Total revenues are classified either as “proceeds” or “non-proceeds” of taxes. In FY 2024-25, budgeted revenue sources total $74,755,542 (See Attachment 2: Schedule 1 and Schedule 2).
Total revenue sources are reduced by non-proceeds of taxes and other qualifying exclusions in the amount of $40,486,202; leaving $34,287,340 net revenue sources subject to limitation (See Attachment 2: Schedule 1).
GANN Limit Law provides some choice in the factors applied to determine the limit each fiscal year. The basic determinant factors are (1) the change in the cost of living, and (2) the change in population. See Government Code Section 7901. To determine the change in the cost of living, the City may choose from either: a) the change in California per capita income as determined by the California Department of Finance, or b) the percentage change in local assessment tax roll from the prior year attributable to the addition of non-residential new construction as calculated by the San Mateo County Assessor’s Office. To determine the change in population, the City may choose either: a) the percentage change within the City, the or b) the percentage change within San Mateo County as determined by the California Department of Finance. For each factor, staff recommends the choice resulting in the maximum increase allowable.
The FY 2024-25 appropriation limit is determined by taking the prior year adjustment ending limit of $39,354,338 and multiplying by the per capita income factor and the County population rate factor. The appropriation limit is adjusted by the factored decrease in population in the County of San Mateo (-0.50%), and by the factored increase in per capita personal income (3.62%). The FY 2024-25 calculated appropriation limit applying such factors is $40,575,070 (See Attachment 2: Schedule 3).
The City’s calculated net revenue “subject to limitation” is $34,287,340 (noted above) is subtracted from the appropriation limit of $40,575,070 leaving a remaining appropriations capacity of $6,287,730 or 15.50%. (See Attachment 2)
In conclusion, the City’s 2024-25 budget appropriations that are subject to limitation are under the calculated appropriation limit and thus in compliance with Article XIIIB of the State Constitution.
It’s important for the Council and the public to note that the City’s Appropriations Subject to Limit are $6,287,730, or 15.50%, below the FY 2024-25 Appropriation Limit allowed by Statute. 622
PUBLIC HEARING ITEM 11.4
If the City ends a fiscal year having more Appropriations Subject to Limit than its Appropriation Limit allows, the City must return the excess either by reducing taxes or fees. Alternatively, the voters of the City may, by majority approval, increase the Appropriations Limit of the City Fiscal Impact
There is no fiscal impact for this item.
Public Notice
Notice of this agenda item by publishing a notice of the hearing dates in “San Mateo County Times” and, also, posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s.
The public was provided notice by making the agenda and report available on the City’s website and on bulletin boards located at (1) City Hall: 2415 University Avenue, East Palo Alto, (2) Library:
2415 University Avenue, East Palo Alto, and (3) 1960 Tate Street, East Palo Alto Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
Attachments
1. Resolution.
2. Attachment 2: Appropriation Limit Calculation.
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Resolution No. XX-2025 1 of 2
RESOLUTION NO. XX– 2025
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF EAST PALO ALTO
ESTABLISHING AN APPROPRIATION LIMIT OF $40,575,070 FOR FISCAL YEAR 2024- 25 WHEREAS, the City is required to adopt a limit on appropriations subject to a formula outlined in Article XIIIB of the California Constitution; and
WHEREAS, the California Constitution also requires a method of inflation be chosen; and WHEREAS, the City of East Palo Alto elects to use the following factors relevant to the calculation of the Appropriation Limit for FY 2024-25:
Per Capita Personal Income Change: +3.62% (Plus Three Point Sixty-Two Percent)
County of San Mateo Population Adjustment: -0.50% (Minus Point Fifty Percent) WHEREAS, a resolution establishing the annual appropriation limit must be adopted at a regularly scheduled meeting or noticed special meeting of the City Council; and WHEREAS, the City Council held public hearings and adopted the Fiscal Year 2024-25 budget on June 18, 2024, and appropriations therein were determined within the calculated appropriation limit; and
WHEREAS, a determination of the FY 2024-25 Appropriations Limit has been made available to the public fifteen days prior to the meeting held.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY:
1. Finds the foregoing recitals are true and correct, and are incorporated by this reference into this action;
2. Sets the Appropriation Limit for Fiscal Year 2024-25 at $40,575,070 pursuant to the calculation prepared in accordance with local law, contained within Exhibit A, which is attached hereto and incorporated by this reference;
3. Finds and determines that the Appropriation Limit of $40,575,070 exceeds the Appropriations Subject to Limitation calculated in the amount of $34,287,340 by $6,287,730; therefore, the City of East Palo Alto complies with the provisions of Article XIII B of the State Constitution; and
4. Finds that the action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
PASSED AND ADOPTED this 18th day of June 2024, by the following vote:
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Resolution No. XX-2025 2 of 2
AYES:
NOES:
ABSENT:
ABSTAIN:
Antonio D. Lopez, Mayor
ATTEST: APPROVED AS TO FORM:
James Colin, City Clerk John D. Lê, City Attorney
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CITY OF EAST PALO ALTO
Appropriation Limitation Calculation
2024-25
EXHIBIT A
Executive Summary
An annual calculation of the City's appropriation limitation is required by Article XIIIB of the California Constitution. City expenditures may increase only in relation to changes in per capita income or growth in non-residential assessment valuation, whichever is greater, and the population change for the City or County, whichever is greater.
I. Determination of Appropriation Limit:
2024-25 Appropriation Limit (Schedule 3) $ 40,575,070
II. Determination of Appropriations Subject to Limitation:
2024-25 Revenue Sources for Appropriations (Schedule 2) $ 74,755,542 Deductions of Exempt Revenues and Qualified Capital (Schedule 1) (40,468,202) 2024-25 Appropriations Subject to Limitation (Schedule 1) $ 34,287,340 III. Amount Under/(Over) Appropriation Limit (I-II) $ 6,287,730 IV. Remaining Capacity as a Percent of FY 2024-25 Limit 15.50% The City's 2024-25 proposed budget appropriations that are subject to limitation are $6,287,730 million under the limitation as shown below:
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CITY OF EAST PALO ALTO
CALCULATION OF APPROPRIATIONS SUBJECT TO LIMITATION
2024-25
SCHEDULE 1
Total Revenue Sources For Appropriations (Schedule 2) $ 74,755,542 Exclusions:
Non-Proceeds of Taxes (Schedule 2) (40,468,202)
Net Revenue Sources Subject to Limitation $ 34,287,340
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CITY OF EAST PALO ALTO
SUMMARY OF REVENUES-BY CATEGORY
2024-25
SCHEDULE 2
Budgeted Budgeted
Proceeds Non-Proceeds Total
of Tax of Tax Revenues
Taxes
Property Taxes $ 17,670,959 $ 2,632,275 $ 20,303,234
Sales and Use Tax 6,219,000 - 6,219,000
Utility Users Tax 688,874 1,100,000 1,788,874
Transient Occupancy Tax 2,750,000 - 2,750,000
Other Taxes 5,242,000 1,478,280 6,720,280
$ 32,570,833 $ 5,210,555 $ 37,781,388
Franchise Fees
Franchise Fees $ - $ 1,245,000 $ 1,245,000
Licenses, Fees, and Permits
Building and Other Permits $ - $ 1,879,922 1,879,922
Rent Stabilization Fees - 570,000 570,000
NPDES - 127,500 127,500
CCAG Measure M Vehicle Fee - - -
Water Capacity system/ supply fee 2,632,744 2,632,744
Development Impact Fees - 5,419,014 5,419,014
$ - $ 10,629,180 $ 10,629,180
Fines and Forfeitures
Vehicle Code and Parking Fines $ - $ 215,000 $ 215,000
Other Fees and Fines - 97,180 97,180
$ - $ 312,180 $ 312,180
Grants and Intergovernmental
California SLESF $ - $ 170,000 $ 170,000
California Department of Aging - - -
California SB2 - - $ -
CalHome - - $ -
Subventions and Reimbursements 42,400 2,068,563 2,110,963 SFCJPA Saferbay Phase I 4,671,253 4,671,253
AHSC, Full trash capture Phase II, and other CIP 5,255,000 5,255,000 Miscellaneous Grants - 1,414,627 1,414,627
$ 42,400 $ 13,579,443 $ 13,621,843
Charges for Current Services
Solid Waste and Recycling Charges $ - $ 3,500,000 $ 3,500,000 Water Capital Replacement Fees - 1,098,370 1,098,370
Building Charges - 843,829 843,829
Engineering Charges - 20,000 20,000
Planning Charges - 321,919 321,919
Police Services - 25,000 25,000
Miscellaneous Charges - 8,500 8,500
$ - $ 5,817,618 $ 5,817,618
1 of 2 Pages
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CITY OF EAST PALO ALTO
SUMMARY OF REVENUES-BY CATEGORY
2023-24
SCHEDULE 2
Budgeted Budgeted
Proceeds Non-Proceeds Total
of Tax of Tax Revenues
Use of Money and Property (ex. Interest)
Facility Use and Leases - 395,000 395,000
Penalties - 30,000 30,000
$ - $ 425,000 $ 425,000
Other Miscellaneous
Solid Waste Reimbursements $ - $ 150,000 $ 150,000
Loan Proceeds and Reimbursements - - -
Other - 1,123,333 1,123,333
$ - $ 1,273,333 $ 1,273,333
Operating Budget Subtotal $ 32,613,233 $ 38,492,309 $ 71,105,542 Percent of Total 45.87% 54.13% 100.00%
Interest Allocation $ 1,674,107 $ 1,975,893 $ 3,650,000 TOTAL $ 34,287,340 $ 40,468,202 $ 74,755,542
2 of 2 Pages
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CITY OF EAST PALO ALTO
APPROPRIATIONS LIMIT COMPUTATION
CUMULATIVE GROWTH RATE
2024-25
Schedule 3
ASSESSED
PER CAPITA VALUATION
FISCAL BEGINNING POPULATION INCOME CHANGE ENDING
YEAR LIMIT FACTOR FACTOR FACTOR LIMIT
2007-08 15,463,621 1.0139 1.0442 N/A 16,371,558
2008-09 16,371,558 1.0126 N/A 1.0920 18,103,000
2009-10 18,103,000 1.0121 N/A 1.1120 20,374,116
2010-11 20,374,116 1.0117 N/A 1.0080 20,777,393
2011-12 20,777,393 1.0080 N/A 0.9810 20,545,684
2012-13 20,545,684 1.0098 1.0377 N/A 21,529,195
2013-14 21,529,194 1.0109 1.0512 N/A 22,878,172
2014-15 22,878,172 1.0117 N/A 1.1160 25,830,765
2015-16 25,830,765 1.0100 1.0382 N/A 27,085,675
2016-17 27,085,675 1.0091 1.0537 N/A 28,799,891
2017-18 28,799,891 1.0056 1.0369 N/A 30,029,838
2018-19 30,029,838 1.0065 N/A 1.0379 31,369,805
2019-20 31,369,805 1.0028 1.0385 N/A 32,668,760
2020-21 32,668,760 0.9987 1.0373 N/A 33,843,251
2021-22 33,843,251 0.9925 1.0573 N/A 35,514,101
2022-23 35,514,101 0.9908 1.0755 N/A 37,844,018
2023-24 37,844,018 0.9957 1.0444 N/A 39,354,338
2024-25 39,354,338 0.9950 1.0362 N/A 40,575,070
Sources:State Dept.of Finance, Budget Resolutions & Prior Year Appropriation Limits, San Mateo County Assessor's Office N/A = Not applicable; calculation formula uses the higher of per capita or assessed valuation factors multiplied by population factor.
Notes:
Population factor: San Mateo County, ((-0.50+100)/100 = 0.9950) Per Capita Income Factor, ((3.62+100)/100 = 1.0362)
Total Change Factor (0.9950 x 1.0362) = 1.031019
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POLICY AND ACTION ITEM 12.1
EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: June 18, 2024
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
John D. Lê, City Attorney
SUBJECT: Certificate of Sufficiency for Citizen Initiative Recommendation
1. Accept the County Clerk's Certification of the Verification of Signatures;
2. Direct staff to prepare a resolution for adoption at the July 1, 2024 meeting, calling for the consolidation of the measure with the General Municipal Election scheduled for November 5, 2024, for the purpose of submission of a measure to the voters; and
3. If desired, order a report on the initiative's effect on municipal operations, with direction as to when the report must be returned to the Council, no later than 30 days.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority: Promote Housing, Economic and Workforce Development Priority: Promote Health & Public Safety
Background
On November 27, 2023, proponents Fr. Lawrence Goode, Appollonia (Mama) Dee Uhila, and Stewart Hyland filed with the City Clerk a notice of intent to circulate an initiative to amend Title 5, Chapter 5.08, Section 5.08.125 of the East Palo Alto Municipal Code. Subsequently, that petition was withdrawn in favor of modified initiative on December 22, 2023. The City Attorney provided a ballot title and summary to allow for circulation of and inclusion as part of the petition. Following receipt of that information, the proponents then published a Notice of Intention to Circulate a Petition and began circulating petitions. On April 22, 2024the City Clerk 631
POLICY AND ACTION ITEM 12.1
received the Citizen’s Initiative Petitions, after which the City Clerk dispatched to the County Clerk for verification of signatures and determination of sufficiency of signature count.
On May 13, 2024, the City received the County Clerk's verification of the sufficiency of the signatures on the initiative petitions. Based on the County's random count, it was determined that the 1,154 signatures required to call for the submission of this item to the voters had been met, with the projected number of valid signatures being 1,165.
Background on the Initiative Process
A ballot initiative provides voters with an opportunity to propose or amend an ordinance independent of the Council’s authority to do so. An initiative has been brought forward by the petition process to amend the voter-approved tax measure placed on the ballot in 2022 by the Council (Measure L). In some cases, pursuant to Calif. Elections Code Section 9215, the Council can choose to implement the proposed change once the petition's sufficiency has been certified, thereby avoiding the costs of adding the item to the ballot. However, staff believes the better approach is to place the measure on the ballot for a couple of reasons.
First, although Measure L mandated an amendment to Title 5, Chapter 5.08, Section 5.08.125 of the East Palo Alto Municipal Code, it did not contain a provision allowing the Council to amend its provisions without voter approval (except to reduce the tax). Second, the initiative in question proposes to convert Measure L from a general tax of 2.5% on gross receipts from the rental of residential units, as it was originally proposed and approved, to a special tax, the funds of which to be used only for the purposes stated therein. Because the California Constitution requires a measure that imposes a tax to be submitted to the voters and because the measure would convert a general tax into a special tax, it likely requires voter approval.
Accordingly, in light of the certification of sufficiency, staff asks that the Council provide direction to return with a resolution calling for the consolidation of the measure with the General Municipal Election scheduled for November 5, 2024, for the purpose of submission of a measure to the voters.
Analysis
As outlined in Election Code §§9211 and 9114, the Election Official must certify the results of the verification process at the next regular meeting, which is why consideration of this item is before the Council at this meeting. Additionally, the Council is being provided with two options for consideration:
1. Directing staff to prepare a resolution for adoption at the meeting of July 2, 2024, which will seek County approval to consolidate the measure with the General Municipal Election scheduled for November 5, 2024.
2. Ordering a report pursuant to Election Code §9212 from the agency on the initiative's effect on municipal operations. If a report is requested by the Council, it must be presented within the time determined by the legislative body, but no later than 30 days after the Election Official certifies the sufficiency of the petition. 632
POLICY AND ACTION ITEM 12.1
Ordering of a Report
As mentioned above, one of the options for the Council to discuss is the ordering of a report on the effects of the initiative on municipal operations. The following excerpt from the Election Code is provided for the Council's information.
Election Code §9212
(a) During the circulation of the petition, or before taking either action described in subdivisions (a) and (b) of Section 9214, or Section 9215, the legislative body may refer the proposed initiative measure to any city agency or agencies for a report on any or all of the following:
1. Its fiscal impact.
2. Its effect on the internal consistency of the city's general and specific plans, including the housing element, the consistency between planning and zoning, and the limitations on city actions under Section 65008 of the Government Code and Chapters 4.2 (commencing with Section 65913) and 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code.
3. Its effect on the use of land, the impact on the availability and location of housing, and the ability of the city to meet its regional housing needs.
4. Its impact on funding for infrastructure of all types, including, but not limited to, transportation, schools, parks, and open space. The report may also discuss whether the measure would be likely to result in increased infrastructure costs or savings, including the costs of infrastructure maintenance, to current residents and businesses.
5. Its impact on the community's ability to attract and retain business and employment.
6. Its impact on the uses of vacant parcels of land.
7. Its impact on agricultural lands, open space, traffic congestion, existing business districts, and developed areas designated for revitalization.
8. Any other matters the legislative body requests to be in the report. (b) The report shall be presented to the legislative body within the time prescribed by the legislative body, but no later than 30 days after the elections official certifies to the legislative body the sufficiency of the petition.
Ballot Question
State elections law requires that the ballot pamphlet include a ballot question of no more than 75 words. The City Council is to approve the wording of the ballot question. The proposed question is:
Shall the measure amending East Palo Alto Municipal Code Section 5.08.125 to require that funds raised by the existing 2.5% tax on gross receipts from renting certain types of residential units, which is estimated to raise approximately $1.45 million annually until repealed by the voters, be used only for tenant rental assistance, administrative expenses, and other specified housing purposes, without increasing the existing tax, be adopted?
633
POLICY AND ACTION ITEM 12.1
Ballot Arguments
State elections law allows the City Council to determine its interest in authoring an argument regarding the measure for printing in the sample ballot. The resolution calls for direct arguments for or against the measure to be submitted to the City Clerk’s office, are limited to 300 words, and can have no more than five signers. Arguments must be accompanied by the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. (A Declaration of Author(s) form is available from the City Clerk’s office.) Since the City is likely to consolidate the November municipal election with the statewide election, the City Council will have discretion regarding the date for submission of argument, subject to coordination with the County Registrar of Voters.
The resolution provides that rebuttal arguments against the measure can be filed. Rebuttals are to be submitted to the Clerk’s office, (assuming Council adopts the arguments for and against) are limited to 250 words and can have no more than five signers.
The City Council has options regarding the preparation of a ballot argument and potential rebuttal. The City Council may:
1. Draft the argument/rebuttal as a whole body in open session;
2. Authorize up to two Councilmembers to draft the argument/rebuttal and have the entire Council sign;
3. Authorize up to two Councilmembers to draft the argument/rebuttal and have a combination of Councilmembers and other eligible voters sign; or
4. Authorize up to two Councilmembers to draft the argument/rebuttal and have up to five eligible voters sign.
Lastly, the resolution directs the City Attorney to prepare an impartial analysis not exceeding 500 words in length to be printed in the ballot.
Fiscal Impact
The fiscal impact of the upcoming general election in November 2024 for the City of East Palo Alto is projected to vary based on the specifics of the ballot. For the election of East Palo Alto Councilmembers alone, the estimated cost ranges from $52,000 to $62,400, translating to a cost per registered voter between $4.32 and $5.18. If one ballot measure (5 pages in SBVIP) is included, the total cost is estimated to increase by approximately $10,000 to between $61,000 and $73,200, with a cost per registered voter ranging from $5.08 to $6.10.
It is important to note that election costs are difficult to estimate precisely due to the variability in costs and the number of registered voters from one election to another. These estimates also depend on the number of jurisdictions participating in the election. A high and low range of estimates is provided for convenience, and the estimate for the candidate statement will be available by mid-June. Nevertheless, the cost of the election is included in FY2024-25 proposed budget.
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POLICY AND ACTION ITEM 12.1
Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.
Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
Government Code § 84308
Applicability of Levine Act: No, the proposed action does not involve an entitlement within the meaning of the Levine Act.
Analysis of Levine Act Compliance: Not applicable.
Attachments
1. Resolution.
2. San Mateo County Clerk’s Certification Letter.
3. City Attorney’s Title and Summary.
4. Proponents’ Notice of Intent to Circulate Petition.
635
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 AN INITIATIVE MEASURE
TO AMEND THE MUNICIPAL CODE TO REQUIRE THAT FUNDS GENERATED BY THE 2.5% TAX ON GROSS RECEIPTS FROM RENTING CERTAIN TYPES OF
RESIDENTIAL UNITS BE USED SOLELY FOR TENANT RENTAL ASSISTANCE,
ADMINISTRATIVE EXPENSES, AND OTHER SPECIFIED HOUSING PURPOSES WHEREAS, on April 22, 2024, proponents submitted to the City a notice of intent to circulate a petition regarding a potential initiative measure to amend the East Palo Alto Municipal Code to require that funds generated by the 2.5% tax on gross receipts from renting certain types of residential units be used solely for tenant rental assistance, administrative expenses, and other specified housing purposes; and WHEREAS, proponents circulated the petition, and having completed all necessary steps to place an initiative measure on the ballot and having gathered the required minimum of signatures of registered voters, on May 13, 2024, the San Mateo Registrar of Voters certified the petition as sufficient; and WHEREAS, as its duly noticed regular meeting held on June 18, 2024, the City Council determined to submit the proposed initiative measure to the voters of the City pursuant to Elections Code Section 9215; and
WHEREAS, in accordance with Elections Code Section 10002 and 10403, the San Mateo County Board of Supervisors is requested to consolidate the City of East Palo Alto General Municipal Election with the Statewide General Election to be held November 5, 2024; and
WHEREAS, the City of East Palo Alto hereby requests that the San Mateo County Board of Supervisors permit the San Mateo County Registrar of Voters to perform services in connection with the consolidated election at the request of the City Clerk.
These services are to include all necessary services related to official ballot creation, sample ballot and voter information pamphlet preparation, vote-by-mail, polling places, poll workers, voter registration, voting machines, canvass operations, and any and all other services necessary for the conduct of the consolidated election; and WHEREAS, the City Council desires to submit this initiative measure to be placed on the ballot at the consolidated General Municipal Election.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO THAT:
SECTION 1. Pursuant to Elections Code Section 10403, the City Council hereby calls an election to be consolidated with the General Municipal Election and the Statewide 636
General Election on November 5, 2024, for the purpose of submitting the initiative measure to a vote of the qualified voters of the City of East Palo Alto, and hereby requests the San Mateo County Board of Supervisors to consolidate this election with the Statewide General Election on November 5, 2024. The consolidated General Municipal Election shall be held and conducted in the manner prescribed by Elections Code Section 10418.
SECTION 2. The City Council pursuant to its right and authority does order to be submitted to the voters at the General Municipal Election the following question:
Shall the measure amending East Palo Alto Municipal Code Section 5.08.125 to require that funds raised by the existing
2.5% tax on gross receipts from renting certain types of residential units, which raises $1.45 million annually until repealed by the voters, be used only for tenant rental
assistance, administrative expenses, and other specified housing purposes, without increasing the existing tax, be adopted?
YES
NO
SECTION 3. 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 be effective, a majority 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.
SECTION 4. The City Council hereby requests the San Mateo County Registrar of Voters to provide all services necessary to conduct the General Municipal Election and to canvass the results of the General Municipal 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 5. 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. Notice of the time and place of holding the election is given and the City Clerk is authorized and directed to give further or additional notice of the election as required by law. The hours during which the polling places shall be open shall be the hours established for the Consolidated General Municipal Election.
SECTION 7. 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, notices, and filings.
637
SECTION 8. Pursuant to 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 to the existing law and the operation of the measure, and transmit the impartial analysis to the City Clerk within 15 days of the adoption of this Resolution.
SECTION 9. Arguments for and against, not to exceed 300 words in length, may be filed consistent with Election Code Section 9282 requirements. The City Council, or any members of the City Council authorized by the City Council, may file a direct argument against the measure and a rebuttal argument. Pursuant to Elections Code Section 9285, the City Council hereby permits rebuttal arguments if arguments have been filed for or against the measure.
SECTION 10. The measure, impartial analysis, any arguments for and against, and any rebuttal arguments filed under the authority of the Elections Code shall be available for public examination in the City Clerk’s office pursuant to Elections Code Section 9295 for 10 calendar days, a period that shall begin immediately following the last filing deadline for the submission of such materials.
SECTION 11. The City Clerk is hereby 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 __________ , by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
SIGNED:
________________________________
Antonio López, Mayor
ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ James Colin, City Clerk John D. Lê
638
ORDINANCE NO.
Exhibit A
639
May 13, 2024
James Colin, City Clerk
City of East Palo Alto
2415 University Ave
East Palo Alto, CA 94303
Dear City Clerk Colin:
We have completed reviewing the signatures for the Initiative Measure to Amend the East Palo Alto Municipal Code to Require that Funds Generated by the 2.5% Tax on Gross Receipts from Renting Certain Types of Residential Units Be Used Solely for Tenant Rental Assistance, Administrative Expenses, and Other Specified Housing Purposes requested and filed by you on April 25, 2024. Out of the 2,069 signatures submitted, 1,640 of those signatures were reviewed and 1,165 signatures were verified as valid.
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Should you have any questions regarding this matter, please feel free to call Hillary O’Connor at 650.312.5294.
Sincerely,
Mark Church
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TITLE AND SUMMARY
The City Attorney has prepared the following title and summary of the chief purposes and points of the proposed measure:
Title: Initiative Measure to Amend the East Palo Alto Municipal Code to Require that Funds Generated by the 2.5% Tax on Gross Receipts from Renting Certain Types of Residential Units Be Used Solely for Specified Purposes
Summary: The current East Palo Alto Municipal Code imposes a 2.5% tax on gross receipts from the rental of residential units, with certain exceptions. The City Council may use the funds generated by the tax for any purpose deemed necessary and appropriate for the benefit of City residents. The City Council is required to review periodically housing policy, housing programs, and related issues to determine how and to what extent the City should establish and fund such programs, if any, to increase the supply of affordable housing and protect residents from displacement and homelessness, including the provision of rental assistance, in light of the City’s budget cycle and other relevant funding cycles.
The proposed initiative measure, if approved by a majority of those voting on the measure, would amend the East Palo Alto Municipal Code by requiring that the funds generated by the tax be used solely for specified purposes. First, at least 30% of the funds must be used exclusively for tenant rental assistance. Second, no more than 20% of the funds may be used for the City’s reasonably incurred costs for staff and overhead to administer the tax. Third, the remaining revenue may, at the City Council’s discretion, be used in any way that supports affordable homeownership, preserves affordable housing, furthers tenant rental assistance, or protects City residents from displacement or homelessness.
The proposed initiative measure would also eliminate the existing requirement that the City Council periodically review housing policy, housing programs, and related issues to determine how and to what extent the City should establish and fund such programs. 641
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