Agenda packet — Escondido City Council, July 27, 2022 (part 2 of 2)

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WHEREAS, projections for budget deficits over at least the next 20 years reflect dramatic increases in expenditures and obligations that far exceed anticipated revenues resulting in a structural budget gap; and
WHEREAS, nearly 2,000 residents of the City have expressed through multiple channels, including a community survey, a scientifically conducted survey concerning a potential local sales tax measure, and by communications directly to City staff City Service funding priorities including addressing homelessness, repairing and maintain local streets, sidewalks and infrastructure, keeping parks and public facilities safe, clean and well-maintained, providing quick responses to 911 emergencies and providing fire protection and paramedic services; and
WHEREAS, nearly all sales tax goes to either the State, County or SANDAG, a local sales tax measure will allow Escondido local control over local revenue for the services residents expect and deserve; and
WHEREAS, residents continue to prioritize 911 emergency response, the funding from this measure will help the City to ensure enough police, firefighters, dispatchers and paramedics to respond quickly to 911 emergencies; and
WHEREAS, additional local funding will the City to keep up with basic repairs and maintenance to public facilities, storm drains, streets and sidewalks; these repairs will be a lot more expensive in the future if they are not addressed now; and
WHEREAS, the City needs additional resources to retain the City's current staffing levels of police and firefighters/paramedics, to address homelessness, and provide the needed upkeep of numerous City facilities including streets, storm drains, sidewalks, curbs, gutters, park and recreation facilities, and other infrastructure which are in need of repair, replacement, upgrading and/or maintenance; and Resolution No. 2022-98
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WHEREAS, the City has determined that the enactment of a 1 cent general local transactions and use tax (commonly known as a "sales tax”) until ended by the voters would allow the City to address the community’s public safety, homelessness , infrastructure, facilities , and equipment priorities without compromising the provision of existing City services; and WHEREAS, local, voter-approved funding will provide a guaranteed source of money for essential City services that cannot be taken by Sacramento or Washington, D.C, as all funds will be controlled by the City; and
WHEREAS, pursuant to Article XIIIC of the California Constitution, and California Revenue and Taxation Code Section 7285.9, the City has the authority to enact a local sales tax for general purposes with the approval of the majority of voters in the City voting in an election on the issue; and WHEREAS, the City Council directed st aff to prepare for submittal to the voters an ordinance enacting a 1 cent sales tax consistent with all applicable general-purpose tax laws, including measures providing for citizens' oversight, separate accounting and independent audits; and WHEREAS, proposed Sections 25-33.1 through 25-33.17, of Chapter 25, Article 2, Division 2 of the Escondido Municipal Code, set forth below, establish a transaction and use tax to be administered by the California Department of Tax and Fee Administration consistent with City Council direction and State law; and
NOW, THEREFORE, subject to approval by an affirmative, simple majority vote of the people as required by law, THE PEOPLE OF THE CITY OF ESCONDIDO, CALIFORNIA, DO ORDAIN AS FOLLOWS:

SECTION 1. The Escondido Municip al Code is hereby revised to add Chapter 25, Article 2, Division 2, Sections 25-33.1 through 25-33.17 as set forth below, thereby enacting a local transaction and Resolution No. 2022-98
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use tax within the City of Escondido to be administered by the California Department of Tax a nd Fee Administration:

CHAPTER 25, ARTICLE 2, DIVISION 2, SECTIONS 25-33.1 THROUGH 25-33.17

ONE CENT SALES TAX

25-33.1. TITLE.

This chapter shall be known as the Escondido One Cent Sales Tax Ordinance. The City of Escondido hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City.
25-33.2. PURPOSE.

This ordinance codified in this chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a retail transaction and use tax, in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be oper ative if a majority vote of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a retail transaction and use tax ordinance that incorporates provisions identical to those of the Sale s and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a retail transactions and use tax ordinanc e that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible Resolution No. 2022-98
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deviation fro m, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting California State Sales and Use Taxes.

D. To adopt a retail transaction and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of the Ordinance.

E. To provide transactions and use tax revenue for unrestricted general revenue purposes, and not specific purposes. All the proceeds from the tax imposed by this chapter shall be placed in the City’s general fund and be available for any legal municipal purpose. 25-33.3. OPERATIVE DATE.
"Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the approval of the voters of the City of a measure approving the imposition of the transactions and use tax set forth herein, unless a later Operative Date becomes effective under the provisions of Section 25 -

33.6. 25-33.4. TRANSACTIONS AND USE TAX IMPOSITION RATE.

A. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one percent (1.0%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the Operative Date of the ordinance codified in this chapter.

B. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the Operative Date of the ordinance codified in this chapter for storage, use or other consumption in said territory at the rate of one percent Resolution No. 2022-98
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(1.0%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 25-33.5. TERMINATION DATE.

The authority to levy the tax imposed by this chapter shall expire upon a vote of a majority of the voters of this City.
25-33.6. CONTRACT WITH CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION.

Prior to the Operative Date, City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of th e ordinance codified in this chapter; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the Operative Date, it shall nevertheless so contract, and in such a case the Operative Date shall be the first day of the first calendar quarter following the effective date of such a contract.
25-33.7. PLACE OF SALE.

For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out -of-state destination or to a common carrier for delivery to an out -of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of tax and Fee Administration.
25-33.8. ADOPTION OF PROVISIONS OF STATE LAW.

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 Resolution No. 2022-98
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(commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this chapter as though fully set forth herein. 25-33.9. LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1. The word "State" is used as part of the title of the State Controller, State Treasurer, Victim Compensation and Government Claims Board, California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California;

2. The result of that substitution would require action be taken by or against this City or any agency, office, or employee thereof, rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance.

3. In those sections, including but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the state under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

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B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 25-33.10. PERMIT NOT REQUIRED.

If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this chapter. 25-33.11. EXEMPTIONS AND EXCLUSIONS.

A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state- administered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at su ch point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of t he Vehicle Code, aircraft license in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by Resolution No. 2022-98
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registration to an out-ofCity address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the Operative Date of the ordinance codified in this chapter.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the Operative Date of the ordinance codified in this chapter.

5. For the purposes of subsections (B)(3) and (B)(4) of this section, the sale or lease of tangible personal property shall be deemed to be obligated pursuant to a contract or lea se for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of p ublic convenience and necessity issued pursuant to the laws of this state, the United States, or any foreign government. This exemption is Resolution No. 2022-98
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in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the Operative Date of the ordinance codified in this chapter.

4. If the possession of, or the exercise of any right or pow er over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the Operative Date of the ordinance codified in this chapter.

5. For the purposes of subparagraphs (C)(3) and (C)(4) of this section, storage, use, or other consumption, or possession of, or exercise or any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subparagraph (C)(7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from a ny purchaser who registers or Resolution No. 2022-98
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licenses the vehicle, vessel, or aircraft at an address in the City.

D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumptions of which is subject to the use tax.
25-33.12. AMENDMENTS TO REVENUE AND TAXATION CODE.

All amendments subsequent to the effective date of the ordinance codified in this chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part

1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this chapter; provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter.
25-33.13. ENJOINING COLLECTION FORBIDDEN.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the state or the City, or against any officer of the state or the City, to prevent or enjoin the collection under this chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 25-33.14. AMENDMENTS BY CITY COUNCIL.

The following amendments to this chapter must be approved by the voters of the City: terminating the tax, increasing or decreasing the tax rate; revising the methodology for calculating the tax, such that a tax increase would result; or, imposing the tax on transactions and uses not previously subject to the tax (unless such amendment occurs automatically by operation of law). The City Council may otherwise amend this chapter without submitting the amendment to the voters for approval.

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25-33.15. USE OF PROCEEDS.

The proceeds from the tax imposed by this chapter shall be for unrestricted general revenue purposes of the City and shall be received into the general fund of the City. Nothing in this chapter shall constitute the tax imposed under this chapter as a special tax, or bind the City to use the proceeds for any specific purpose or function; the City Council shall retain discretion to expend the proceeds of the tax for any lawful purpose of the City.
25-33.16. CITIZENS' OVERSIGHT AND ACCOUNTABILITY.

In order to provide for citizens' oversight, transparency , and accountability in connection with expenditures of tax revenues generated under the terms of this chapter, the City shall do the following:

A. Separate Fund Accounting. All revenue generated by the tax (“ Measure ‘E' Revenues”) shall be accounted in the General Fund as a separate line item entitled "Local Sales and Use Tax - Measure ‘E ' Revenues." Measure ‘E ' Revenues will then be transferred to a General Fund subfund entitled " Measure ‘E ' Fund." Any and all expenditures of Measure ‘E ' Revenues will be tracked and accounted for by City Finance Department staff in accordance with Generally Accepted Accounting Principles (GAAP), and presented annually in a report (the "Finance Department Report") to the Citizens' Oversight Committee ("COC") created pursuant to Subdivision (D) below.

B. Initial and Annual Submittal of Measure A Spending Plan . If Measure ‘E' is approved by the voters, beginning in the fiscal year 2023 -24, and for each subsequent year, the City Manager shall, prior to the City Council consideration of the City's annual budget, prepare and present to the COC for its review a spending plan for Measure ‘E' Revenues. It is the intent that the Measure ‘E' Revenues be used to improve public safety, infrastructure, and the delivery of public services and help solve the City's structural deficit and the plan (the "Measure ‘‘E' Spending Plan") shall reflect these priorities and include specific proposals for near term expenditures as well as a plan for expenditures while the tax is in effect, and finance options for larger-scale projects that may require the pledge of Measure ‘E' Revenues. After Resolution No. 2022-98
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review and recommendation by the COC, the Measure ‘E' Spending Plan shall be presented to the City Council for its consideration and final decision in its discretion, as part of the City's annual budget process. The City Council must consider for approval the expenditure of projected Measure ‘E' Revenues as a separate line item category in each year's budget.

C. Annual Independent Audit. Beginning with the fiscal year that ends June 30, 2023, the City's independent auditors shall, as part of their annual audit of the City's financial statements, review the collection and expenditure of revenue from the Measure ‘E' Revenues. Along with the City's Finance Department Report provided in subsection A, above, the auditors' review of such revenues ("Auditor Report") shall be presented each year to the COC at a public meeting for its review for compliance with the terms of th e o rdinance codified in this chapter . The results of the COC review shall then be transmitted through the City's Manager's Office to the City Council for its consideration at a public meeting.

D. Citizens' Oversight Committee. Prior to the Operative Date, the City Council shall create and convene a Citizens' Oversight Committee ("COC"). The function of the COC shall be to review and report on City compliance with the terms of this chapter and the Measure ‘E' Spending Plan presented and approved by the City Council thereafter. Specific COC responsibilities shall include: (1) public review and comment on each year's Finance Department Report, Measure ‘E' Spending Plan and Auditor Report (as provided in subsections A-C, above); (2) preparation of an annual report regarding compliance with the City Council adopted Measure ‘E' Spending Plan for presentation to the City Council at a public meeting; (3) working with City staff to identify and apply "best practi ces" for tracking and reporting on Measure ‘E' Revenues and expenditures relative to other City revenues and expenditures; and (4) making a finding whether the Measure ‘E ' Revenues have been expended consistent with the intent of the measure. Current elected City officials and employees are disqualified from membership in the COC. COC members shall be appointed by the City Council in accordance with existing City policies, or as may be Resolution No. 2022-98
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adopted by Resolution or Ordinance, and will include individuals with a range of expertise, including but not limited to accounting, finance, and engineering. The COC shall operate in accordance with the Ralph M. Brown Act, which includes requirements that meetings be noticed in advance and held in public. The COC shall be created by City Council ordinance consistent with the terms of this section adopted no later than April 30, 2023.
25-33.17. SEVERABILITY.

If any provision of this chapter or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.

This City Council and the people of the City o f Escondido hereby declare that they would have adopted the ordinance codified in this chapter irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the chapter be enforced.

SECTION 2. ENVIRONMENTAL ANALYSIS. This ordinance is exempt from review under the California Environmental Quality Act (California Public Resources Code sections 2100, et. seq., “CEQA”) and CEQA Regulations (14 California Code of Regulations sections 1 500, et. seq.) because it establishes rules and procedures to implement government funding mechanisms; does not have any commitment to a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this ordinance does not constitute a “project” that requires environmental review (14 CCR section 15378(b)(4-5)).

SECTION 3. INCONSISTENT PROVISIONS. Any provisions of the Escondido Municipal Code, or appendices thereto, or any other ordinances of the City inconsistent herewith, to the extent of such inconsistencies and no further, are hereby repealed.

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SECTION 4. The City Clerk shall be authorized to replace the terms "Measure E" wherever they appear in this ordinance, and in Resolution 2022 -98, with the respective ballot designations determined by the County Registrar before this ordinance is codified.

SECTION 5. This ordinance shall take effect immediately, upon approval by a simple majority of the voters voting on the question at the November 8, 2022 election.

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RESOLUTION NO. 2022-99

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, EXPRESSING THE INTENT OF
THE CITY COUNCIL IN ADOPTING ORDINANCE NO. 2022-
98 AND PLACING A LOCAL SALES TAX MEASURE ON THE
NOVEMBER 2022 BALLOT

WHEREAS, the City of Escondido (“City”) is a general law city of extraordinary potential currently experiencing critical fiscal challenges to having sufficient revenues to meet ever increasing costs required by law; and
WHEREAS, the City’s ability to create and collect revenue has not been able to keep pace with the growing costs of providing municipal services and thereby threatens the City’s ability to provide the needed services to ensure safe neighborhoods and quality services to support its residents; and WHEREAS, the City has aggressively responded to this financial challenge by reducing its workforce over the years below pre-recession levels; reducing pension obligations; deferring maintenance of City facilities and purchase of equipment; pursuing available grant funding whenever possible; establishing Community Facilities Districts thereby capturing the additional services costs associated with new developments; and, regrettably, cutting back services despite serving a growing population; WHEREAS, the City serve s its citizens primarily by services performed by employees, as a result approximately 84% of the City’s budget is devoted to employee related costs, which are growing primarily as a result of pension related payments the City is required to make to CalPERS to address the Unfunded Accrued Liability; and
WHEREAS, required annual payments to CalPERS are 15% of the total General Fund operating budget at $19.7 million in FY2022/23, and are expected to continue to grow over the next twenty years; and
WHEREAS, the City fundamentally changed the methodology it uses in the budget process for its 2022/23 fiscal year budget to ensure that it maintains fiscal stability by reducing reliance on unsustainable 187
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one-time funding sources and instead, using reliable indicators of revenue and expenditures to provide a realistic balanced budget focusing on the priorities of the community; and WHEREAS, nearly 2,000 residents of the City have expressed through multiple channels, including a community survey, a scientifically conducted survey concerning a potential local sales tax measure, and by communications directly to City staff and the City Councilmembers, a strong interest in ensuring a safe community for its residents and one that attracts business and visitors; and WHEREAS, nearly all sales tax goes to either the State, County or SANDAG, a local sales tax measure will allow Escondido local control over local revenue for the services residents expect and deserve; and
WHEREAS, residents also identified funding priorities for City services including addressing homelessness, repairing and maintain local streets, sidewalks and infrastructure, keeping parks and public facilities safe, clean and well -maintained, providing qu ick responses to 911 emergencies and providing fire protection and paramedic services; and
WHEREAS, residents continue to prioritize 911 emergency response, the funding from this measure will help the City to ensure enough police, firefighters, dispatche rs and paramedics to respond quickly to 911 emergencies; and
WHEREAS, additional local funding will the City to keep up with basic repairs and maintenance to public facilities, storm drains, streets and sidewalks; these repairs will be a lot more expensive in the future if they are not addressed now; and
WHEREAS, the City Council believes that a local government can best address the community’s concerns about safety by providing focused financial support and resources to its police and fire departments; and
WHEREAS, the City Council is considering the placement of a local sales tax measure before the voters which would allow for locally controlled funds to augment existing but insufficient sales and 188
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property tax revenues to directly meet the needs of this City, including specifically, the need to ensure a safe and livable community; and
WHEREAS, the City Council is particularly mindful of the financial burdens placed on all residents by the imposition of any kind of tax, levy or fee and the increase of any such revenue sources must be done only when required to provide the services needed to achieve the expectations of City residents; and
WHEREAS, because the current City Council is not able to direct future city councils on their spending priorities in their budgets, and particularly in how any revenue derived from a proposed local general sales tax measure will be allocated , the purpose of this Resolution is to unequivocally state the intent of this City Council which is facing th e existing critical fiscal challenge and required to make the difficult decision whether there are sufficient revenues available to meet the community’s needs and whether its residents should be potentially facing an increased tax burden; and WHEREAS, this City Council believes that should the community vote in favor of a local sales tax measure, future city councils should devote at least 50% of any additional revenue derived therefrom to support of the City’s police and fire departments in their efforts to deliver to the taxpayers the safe City they want and deserve; and
WHEREAS, the proposed sales tax measure will require separate accounting as Local Sales and Use Tax – Measure ‘E’ Revenues and the City Manager shall prepare an annual spending plan for Measure ‘E’ Revenues to be used to improve public safety, infrastructure and the delivery of public services and help solve the City’s structural deficit.

WHEREAS, the City Council shall create and convene a Citizens’ Oversight Committee to: (1) ensure public review and comment on the annual spending plan for Measure ‘E’ Revenues; (2) prepare an annual report regarding compliance with the previous year annual spending plan for presentation to the City Council at a public meeting; (3) work with City staff to prepare best practices for tracking and 189
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reporting on Measure ‘ E’ Revenues and expenditures relative to other City revenues and expenditures, and; (4) making a finding whether Measure ‘E’ Revenues have been expended consistent with the intent of the measure; and
WHEREAS, the Citizens’ Oversight Committee shall operate subject to the Brown Act and all meetings will be properly noticed and open to the public; and WHEREAS, the City shall conduct an annual independent audit of the City’s financial statements, including the review of the collection and expenditure of revenue from Mea sure ‘E,’ and the auditor’s report shall be presented to the Citizens’ Oversight Committee for its review of compliance with the terms of Measure ‘E’; and
WHEREAS, in addition to the review of the annual spending plan for Measure ‘E’ Revenues as part of the annual budget process, every five years the City Council should conduct a strategic review of Measure ‘E’ Revenues and expenditures and will assess the necessity of continuing any sales tax approved by the voters; and
WHEREAS, this City Council deems it to be in the best interests of the City and its residents, given existing fiscal challenges and the importance of supporting a safe and livable community, to place a measure on the November 2022 ballot for the community’s consideration and decision.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That this City Council believes that a City must live within its financial means ; engage the community in its yearly budget process in a transparent , honest and meaningful way; and must avoid whenever reasonably possible placing any additional tax burdens on City residents.

3. That this City Council believes at this time there are sufficient critical financial circumstances and needs warranting placement of a local sales tax measure on the ballot for voter consideration. 190
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4. That this City Council is adopting Ordinance No. 2022 -15 to give future City Councils the opportunity to have adequate fiscal reso urces to maintain a safe and livable community for City residents and that can best be accomplished by earmarking not less than half of any additional revenues from a local sales tax measure to support the City’s police and fire services. 191
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ORDINANCE NO. 2022-15

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ESCONDIDO, CALIFORNIA , ADDIN G CHAPTER 25,
ARTICLE 2, DIVISION 2, SECTION 25 -33.1 THROUGH 25-

33.17 TO THE ESCONDIDO MUNICIPAL CODE TO
ESTABLISH A 1 CENT GENERAL TRANSACTIONS AND USE
(SALES) TAX TO BE ADMINISTERED BY THE CALIFORNIA

DEPARTMENT OF TAX AND FEE ADMINISTRATION
INCLUDING PROVISIONS FOR CITIZENS’ OVERSIGHT AND

ACCOUNTABILITY

WHEREAS, the health, safety and welfare of all residents in the City of Escondido (“City”) is the City’s top priority; and
WHEREAS, the City’s ability to create and collect revenue has not been able to keep pace with the growing costs of providing municipal services and thereby threatens the City’s ability to provide the needed services to ensure safe neighborhoods and quality services to support its residents; and WHEREAS, the City has aggressively responded to this financial challenge by reducing its workforce over the years below pre-recession levels; reducing pension obligations; deferring maintenance of City facilities and equipment purchases; pursuing available grant funding whenever possible; establishing Community Facilities Districts thereby capturing the additional services costs associated with new developments; and, regrettably, cutting back services despite serving a growing population; and WHEREAS, the City fundamentally changed the methodology it uses in the budget process for its 2022/23 fiscal year budget to ensure that it maintains fiscal stability by reducing reliance on unsustainable one-time funding sources and instead, using reliable indicators of revenue and expenditures to provide a realistic balanced budget focusing on the priorities of the community; and 192
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use tax within the City of Escondido to be administered by the California Department of Tax a nd Fee Administration:

CHAPTER 25, ARTICLE 2, DIVISION 2, SECTIONS 25-33.1 THROUGH 25-33.17

ONE CENT SALES TAX

25-33.1. TITLE.

This ordinance codified in this chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

33.6. 25-33.4. TRANSACTIONS AND USE TAX IMPOSITION RATE.

The authority to levy the tax imposed by this chapter shall expire upon a vote of a majority of the voters of this City.
25-33.6. CONTRACT WITH CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
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B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the Operative Date of the ordinance codified in this chapter.

licenses the vehicle, vessel, or aircraft at an address in the City.

25-33.15. USE OF PROCEEDS.

SECTION 5. This ordinance shall take effect immediately, upon approval by a simple majority of the voters voting on the question at the November 8, 2022 election. 206
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STAFF REPORT

July 27, 2022
File Number 0650-20

SUBJECT

TERM LIMITS BALLOT MEASURE FOR CITY COUNCILMEMBERS AND THE MAYOR

DEPARTMENT
City Attorney

RECOMMENDATION
Consider and introduce Ordinance No. 2022 -13 and adopt Resolution No. 2022 -91R to place a ballot measure to set term limits for the Mayor and City Councilmembers on the November 8, 2022, consolidated general election.

Staff Recommendation: None
Presenters: Gary McCarthy, Assistant City Attorney

FISCAL ANALYSIS
The San Diego County Registrar of Voters indicates that placement of this measure on the November general election ballot could cost up to $78,000. The actual costs will depend on how many jurisdictions participate in the election and the quantity of pages required to present the measure and associated text.

The Registrar assigns election costs in a consolidated election through the use of a weighted average method.

PREVIOUS ACTION
On July 15, 2020, the City Council considered placing a ballot measure before the voters to enact terms limits on City Councilmembers and the City Treasurer. The matter failed to muster a majority vote.

On May 25, 2022, the City Council directed the City Attorney to prepar e a ballot measure for the November 2022 general election to allow voters to address term limits for the Mayor and City Councilmembers in Escondido. The City Council agreed that the ballot measure should set limits of two terms for the Mayor and three terms for City Councilmembers.

BACKGROUND
In the Community Opinion Survey Summary Report, prepared for the City of Escondido published on December 31, 2021, approximately two -thirds (68%) of Escondido residents favored limiting City Councilmembers to two consecutive four-year terms, twenty-two percent (22%) preferred no term limits 207
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and 10% were unsure or unwilling to answer the question . In every identified subgroup surveyed, those who favored term limits outnumbered those who did not by at least 2-to-1.

On April 6, 2022 , Councilmember Morasco requested a Future Agenda item to discuss and consider an amendment to the Escondido Municipal Code to place limits on the terms for the mayor, councilmembers and the city treasurer who may serve the City of Escondido . Any such amendment would need to be placed on the general election ballot for public vote. At this time there are no limits on the number of terms an elected or appointed representative for the City may serve under the Code. Neither federal nor state law place term limits on the city’s elected offices.

On May 25, 2022, after a staff presentation, hearing public comment and deliberating on the merits of bringing the matter forward for a public vote, the City Council directed the City Attorney t o prepare a ballot measure for the November 2022 general election to allow voters to address term limits for the Mayor and City Councilmembers in Escondido . The City Council agreed that the ballot measure should set limits of two terms for the Mayor and three terms for City Councilmembers. The City Council did not address the issue of whether the other elected City official, the City Treasurer, should also be included in the ballot measure for a public vote on a term limit.

1. Municipal Term Limits.

As noted in the May 2022 Staff Report, State law establishes procedural steps to adopt local government term limits. First, the City Council or City residents may propose by initiative limits on the number of terms a municipality’s elected may serve. Second, regardless of the source, any proposal to limit or change term durations shall not become operative unless the electors of the City at a regularly scheduled election vote and a majority of the votes cast on the question in favor the adoption of the proposal. (Government Code section 36502(b).) The imposition of term limits must occur prospectively – it cannot impact the current term of elected officials.

2. Proposed Ballot Measure and Ordinance.

The proposed ordinance, if approved by a simple majority of qualified voters, would impose lifetime term limits of two terms for a Mayor and three terms for City Councilmembers. Partial terms of two years or more in that office would count as one term. A partial term of less than two years in that office would not count as a term.

Under state law, any term limits would not apply to the current terms of current elected officials.

Ordinance No. 2022-13 provides the language necessary to amend the Escondido Municipal Code to impose term limits requested by the City Council on May 25, 2022. The Ordinance requires voter approval in order to be effective.

Resolution No. 2022-91R will add this ballot measure to the consolidated general election on November 8, 2022. The San Diego County Registrar of Voters Calendar of Events lists the key events for the next consolidated general election and is included as Attachment “A.” 208
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Ballot measures may include arguments for or against the measure. Anyone can submit arguments in support of or opposed to the measure, and may also submit rebuttals. If the City Clerk receives multiple arguments for or against the measure, the City Clerk will select th e arguments to be presented to the voters in the voter information pamphlet based on priorities described in state law. If the City Council prefers to submit an argument in support of the proposed measure, the City Council or an individual councilmember’s argument would take precedence over any other submissions. Thus, the City Council may choose to maintain control of the ballot argument.

Because of the physical limitations of ballots, ballot measure language has a 75-word limit. The proposed ballot language is as follows:

To establish term limits of two terms for persons serving as Mayor and three terms for persons serving as a City Councilmember , whether consecutive or not, shall Ordinance 2022-13 amending the Escondido Municipal Code be approved? The ballot measure voter information pamphlet would contain the proposed changes to Chapter 2 of the Escondido Municipal Code.

Conclusion.

If the City Council chooses to the submit this ballot measure to the voters on November 8, 2022, and more than one half (50% + 1) of the voters vote yes, the measure would become effective.

The City Council or individual Councilmembers may retain control of the ballot measure argument by voting to authorize the mayor , or one or more city councilmembers , to draft the argumen t and any rebuttals if necessary.

ATTACHMENTS
a. Attachment “1” – San Diego County Registrar of Voters November 8, 2022 for Local Measures Calendar of Events

ORDINANCES
a. ORDINANCE NO. 2022-13

RESOLUTIONS
a. RESOLUTION NO. 2022-91R

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SAN DIEGO COUNTY – REGISTRAR OF VOTERS
NOVEMBER 8, 2022

CALENDAR OF EVENTS
FOR
LOCAL MEASURES: COUNTY, SCHOOL AND SPECIAL DISTRICTS
(CITIES: PLEASE CONTACT EACH CITY CLERK FOR DETAILS.)
Unless stated otherwise, all section references are for the California Elections Code.

DAYS BEFORE

AN ELECTION DATE EVENT
88 August 12
Registrar of Voters to receive resolution(s) requesting consolidation, services, etc. Ballot text (limited to 75 words) must be included in the resolution. (10403; Education Code 5322)
Tax rate statement (if applicable) is due at Registrar of Voters Office. (9401) 87 August 13 Registrar of Voters to pos t online measure text and Notice of Argument Deadline.
85 August 15 Registrar of Voters to publish a Notice of Argument Deadline in newspaper of general circulation. (9163, 9316, 9502)
82 August 18 Arguments in favor of OR against a measure are due at Registrar of Voters Office. (9163, 9316, 9502)
81 August 19 Impartial analysis is due at Registrar of Voters Office. (9160, 9313, 9500) 77 August 23 Rebuttal arguments due at Registrar of Voters Office. (9167, 9317, 9504) 67 to 41 September 2 -
September 28
Ballots typeset, proofed and printed.
29 October 10 First day vote-by-mail ballots are available. (3001,3003) In-office voting begins.
15 October 24 Last day to register to vote in this election. (2102) 14 to 0 October 25 -
November 8
Conditional Voter Registration Period – Voters who miss the registration deadline may register and vote. See details at sdvote.com (2170) 6 to 0 November 2 -
November 8
Emergency voting in person or pick up (also can pick up with written/signed statement of request by any authorized representative). (3021) 0 November 8 ELECTION DAY – Polls open from 7 am to 8 pm.

DAYS AFTER

THE ELECTION DATE EVENT
+ 30 December 8 Certified results available after the official canvass i s completed. Major elections (Primary or General of an even year, for example) may requir e 30 days; stand-alone or smaller elections require less time. (15372) Attachment "1"
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ORDINANCE NO. 2022-13

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ESCONDIDO, CALIFORNIA, ADDING ARTICLE 2, SECTION
2-25 TO CHAPTER 2 OF THE ESCONDIDO MUNICIPAL

CODE TO ESTABLISH TERM LIMITS FOR THE MAYOR AND

CITY COUNCILMEMBER OFFICES

WHEREAS, in Community Opinion Survey Summary Report, prepared for the City of Escondido and published on December 31, 2021, approximately two -thirds (68%) of Escondido residents favored limiting City Councilmembers to two consecutive four -year terms, twenty-two percent (22%) preferred no term limits, and 10% were unsure or unwilling to answer the question; and WHEREAS, California Government Code section 36502(a) authorizes the city council of a general law city to adopt, by initiative, a proposal to limit the number of terms a member of the city council may serve on the city council, or the number of terms an elected mayor may serve; and WHEREAS, California Government Code section 36502(b) holds that any proposal to limit the number of terms a member of the city co uncil may serve on the city council, or the number of terms an elected mayor may serve, shall apply prospectively only and shall not become operative unless it is submitted to the electors of the city at a regularly scheduled election and a majority of the votes cast on the question favor the adoption of the proposal; and
WHEREAS, at a duly noticed meeting held on May 25, 2022, the City Council directed the City Attorney to prepare a ballot measure for voter approval to establish term limits for the Mayor and City Councilmembers of the City of Escondido.

NOW, THEREFORE, subject to approval by an affirmative, simple majority vote of the people as required by law, THE PEOPLE OF THE CITY OF ESCONDIDO, CALIFORNIA, DO ORDAIN AS FOLLOWS:

SECTION 1. The Escondi do Municipal Code is revised to add Chapter 2 - Administration, Article 2 - City Council, Section 2-25 – Term Limits, as set forth below:
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CHAPTER 2, ARTICLE 2, SECTION 2-25
Term limits.
(a) No person shall serve more than two terms as the mayor whether consecutive or not.

This term limit applies to appointed terms and elected terms. A partial term of two years or more in that office shall count as one term. A partial term of less than two years in that office shall not count as one term.
(b) No person shall serve more than three terms as a councilmember, regardless of the district represented, whether consecutive or not. This term limit applies to appointed terms and elected terms. A partial term of two years or more in that office shall count as one term. A partial term of less than two years in that office shall not count as one term.

SECTION 2. ENVIRONMENTAL ANALYSIS. This Ordinance is exempt from review under the California Environmental Quality Act (California Public Resources Code sections 2100, et. seq., “CEQA”) and CEQA Regulations (14 California Code of Regulations sections 1500, et. seq.) because it establish es rules and procedures to implement government funding mechanisms; does not have any commitment to a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this Ordinance does not constitute a “project” that requires environmental review (14 CCR section 15378(b)(4-5)).

SECTION 4. This Ordinance shall take effect immediately, upon approval by a simple majority of the voters, voting on the question at the November 8, 2022 election.

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RESOLUTION NO. 2022-91R

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, CALLING FOR THE HOLDING

OF A GENERAL MUNICIPAL ELECTION ON TUESDAY,
NOVEMBER 8, 2022, FOR THE SUBMISSION OF A

PROPOSED ORDINANCE TO ESTABLISH TERM LIMITS ON
MAYOR AND CITY COUNCILMEMBER OFFICES;

CONSOLIDATING THE ELECTION WITH THE STATEWIDE

ELECTION, REQUESTING THE BOARD OF SUPERVISORS

OF THE COUNTY OF SAN DIEGO TO PERMIT THE
REGISTRAR OF VOTERS TO CONDUCT THE ELECTION;

AND DIRECTING THE CITY ATTORNEY TO PREPARE AN

IMPARTIAL ANALYSIS

WHEREAS, the California Elections Code Section 9222, authorizes the City Council to submit to the voters a proposition for the enactment of any ordinance, to be voted upon at any succeeding regular city election, and if the proposition submitted receives a majority of the votes cast on it at the election, the ordinance shall be or enacted accordingly; and
WHEREAS, the City Council of the City of Escondido has adopted an o rdinance, adding Article 2, Section 2-25 of Chapter 2 of the Escondido Municipal Code to establish term limits for the mayor and city councilmember offices; and
WHEREAS, the City Council is authorized by statue to submit the proposed ordinance to the voters; and
WHEREAS, in accordance with State elections law, the City Council of the City of Escondido has called a General Municipal Election to be held in the City of Escondido, California, on Tuesday, November 8, 2022; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date; that the City precincts, polling places and election officers of the two elections be the same; that the Registrar of Voters canvass the returns of the General Municipal Election; and that the election be held in all respects as if there were only one election. 214
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido , California as follows:

1. That the above recitations are true.

2. That pursuant to the requirements of the laws of the State of California there shall be and there is hereby called and ordered to be held in the City of Escondido, California, on Tuesday, November 8, 2022, a General Municipal Election for the purpose of submitting the following proposed ordinance , imposing term limits on the offices of mayor and city councilmembers, to the qualified electors of the City of Escondido.

3. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election on November 8, 2022, the following question:

Yes

4. That the text of the ordinance submitted to the voters is attached as Exhibit A and incorporated into this resolution by this reference.

5. That the notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give such further or additional notice of the election, in time, form and manner as required by law.

6. Pursuant to Califor nia Elections Code section 9282, the City Council hereby acknowledges its authority, and the authority of any individual voter who is eligible to vote on the measure, or bona fide association of citizens, or any combination of voters and associations, to submit a written argument, not to exceed 300 words, for or against the measure. Arguments must 215
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be submitted to the City Clerk, and may be changed until and including the date fixed by the City Clerk, after which no arguments for or against the measure may be submitted, withdrawn or changed.

7. Pursuant to California Elections Code section 9285, rebuttal arguments will be allowed. The rebuttal arguments may not exceed 250 words. Rebuttal arguments must be submitted to the City Clerk, and may be changed unti l and including the date fixed by the City Clerk, after which no rebuttal arguments for or against the measure may be submitted to the City Clerk. This Section 7 is applicable only to the November 8 , 2022 election called by this resolution and after that election, shall expire.

8. Pursuant to California Elections Code section 9280, the City Clerk is directed to transmit a copy of the measure to the City Attorney. The City Attorney is directed to prepare an impartial analysis of the measure, not to exceed 5 00 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk by the date fixed by the City Clerk.

9. Pursuant to California Elections Code section 10403, the Board of Supervisors of the County of San Diego is hereby requested to permit the Registrar of Voters to perform and render all services and proceedings, and to procure and furnish any and all official ballots, notices, printed matter and all supplies and equipment and paraphernalia incidental to and connected with the conduct of the subject election of the City of Escondido, with the cooperation and assistance of the City Clerk of the City of Escondido, in order to properly and lawfully conduct such el ection.

10. The Board of Supervisors of the County of San Diego is hereby requested to consolidate this election with the statewide election to be held on the same day, in the same territory. Pursuant to California Elections Code section 10411 and section 10418: (a) the election shall be held in all 216
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respects as if there were only one election; (b) only one form of ballot shall be used; and (c) the Registrar of Voters of the County of San Diego shall canvass the returns of the subject election as part of the canvass of the returns of the election consolidated hereby.

11. Pursuant to California Elections Code sections 10410 and 10418, within the territories affected by this consolidation, the elections precincts, polling places, voting booths and poling hou rs shall, in every case, be the same, and there shall be only one set of election officers in each of the precincts.

12. The polls of said election shall be open at seven o'clock a.m. of the day of the election and shall remain open continuously from that time until eight o'clock p.m. of the same day when the polls shall be closed, except as provided in California Elections Code section 14401 or as otherwise required or allowed under applicable law.

13. That the ballots to be used at the election shall be , both as to form and matter contained in form and content as required by law.

14. City requests Measure titled as Measure F.

15. That the vote requirement for the measure to pass is a majority (50%+1) of the votes cast.

16. The County of San Diego shall be reimbursed in full for the services performed by the registrar of Voters for the City of Escondido upon presentation of a bill therefor, and this City agrees to indemnify and save free and harmless the County, its officers, agents and employees from expense or liability, including reasonable attorney’s fees, as a result of an election contest arising from this election.

17. The City Council finds that this Resolution is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in 217
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a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no poten tial for resulting in physical change to the environment, directly or indirectly.

18. That in all particulars not otherwise recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

19. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, improper or unenforceable, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect , and not be affected by such invalidity.

20. The City Clerk is hereby directed to certify the passage and adoption of this resolution and forthwith file a certified copy of this Resolution with the Board of Supervisors and the Registrar of Voters of the County of San Diego and to issue instructions to the Registrar of Voters to take any and all steps necessary for the holding of the election.
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ORDINANCE NO. 2022-13

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ESCONDIDO, CALIFORNIA, ADDING ARTICLE 2, SECTION
2-25 TO CHAPTER 2 OF THE ESCONDIDO MUNICIPAL

CODE TO ESTABLISH TERM LIMITS FOR THE MAYOR

AND CITY COUNCILMEMBER OFFICES
WHEREAS, in Community Opinion Survey Summary Report, prepared for the City of Escondido and published on December 31, 2021, approximately two -thirds (68%) of Escondido residents favored limiting City Councilmembers to two consecutive four -year terms, twenty-two percent (22%) preferred no term limits, and 10% were unsure or unwilling to answer the question; and WHEREAS, California Government Code section 36502(a) authorizes the city council of a general law city to adopt, by initiative, a proposal to limit the number of terms a member of the city council may serve on the city council, or the number of terms an elected mayor may serve; and WHEREAS, California Government Code section 36502(b) holds that any proposal to limit the number of terms a member of the city council may serve on the city council, or the number of terms an elected mayor may serve, shall apply prospectively only and shall not become operative unless it is submitted to the electors of the city at a regularly scheduled election and a majority of the vote s cast on the question favor the adoption of the proposal; and WHEREAS, at a duly noticed meeting held on May 25, 2022, the City Council directed the City Attorney to prepare a ballot measure for voter approval to establish term limits for the Mayor and City Councilmembers of the City of Escondido.

NOW, THEREFORE, subject to approval by an affirmative, simple majority vote of the people as required by law, THE PEOPLE OF THE CITY OF ESCONDIDO, CALIFORNIA, DO ORDAIN AS FOLLOWS:

SECTION 1. The Escondido Municipal Code is revised to add Chapter 2 - Administration, Article 2 - City Council, Section 2-25 – Term Limits, as set forth below:

Resolution No. 2022-91
Exhibit "A"

Page 1 of 3 ends

219
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CHAPTER 2, ARTICLE 2, SECTION 2-25
Term limits.
(a) No person shall serve more than two terms as the mayor whether consecutive or not.

This term limit applies to appointed terms and elected terms. A partial term of two years or more in that office shall count as one term. A partial term of less than two years in that office shall not count as one term.
(b) No person shall serve more than three terms as a councilmember, regardless of the district re presented, whether consecutive or not. This term limit applies to appointed terms and elected terms. A partial term of two years or more i n that office shall count as one term. A partial term of less than two years in that office shall not count as one term.

SECTION 2. ENVIRONMENTAL ANALYSIS. This Ordinanc e is exempt from review under the California Environmental Quality Act (California Public Resources Code sections 2100, et. seq., “CEQA”) and CEQA Regulations (14 California Code of Regulations sections 1500, et. seq.) because it establishes rules and proc edures to implement government funding mechanisms; does not have any commitment to a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that wil l not result in direct or indirect physical changes in the environment. Accordingly, this Ordinance does not constitute a “project” that requires environmental review (14 CCR section 15378(b)(4-5)).

Resolution No. 2022-91
Exhibit "A"

Page 2 of 3 ends

220
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SECTION 4. The City Clerk shall be authorized to replace the terms “Me asure F” wherever they appear in this ordinance, and in Resolution No. 2022 -91, with the respective ballot designations determined by the County Registrar of Voters before this ordinance is codified.

SECTION 5. This Ordinance shall take effect immediatel y, upon approval by a simple majority of the voters, voting on the question at the November 8, 2022 election.

Resolution No. 2022-91
Exhibit "A"

Page 3 of 3 ends

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STAFF REPORT

July 27, 2022
File Number 0650-20

SUBJECT

CITY TREASURER BALLOT MEASURE OPTIONS

DEPARTMENT
City Attorney

RECOMMENDATION
Request the City Council consider and address the alternatives provided below and take preferred action.

If the City Council intends to place the City Treasurer’s compensation on the ballot, it should adopt Ordinance No. 2022-16 and Resolution No. 2022-107R.

If the City Council intends to ask the voters to make the City Treasurer an appointed position, it should adopt Ordinance No. 2022-17 and Resolution No. 2022-108R.

Staff Recommendation: Provide Direction (City Attorney: Gary McCarthy, Assistant City Attorney) Presenter: Gary McCarthy, Assistant City Attorney

FISCAL ANALYSIS
The fiscal impact of a ballot measure relating to the City Treasurer will vary with the decisions made. A routine ballot measure could cost between $45,000 and $75,000.

The option to reduce the Cit y Treasurer’s compensation could present significant annual savings that would vary with the proposed salary. Appointing the Director of Finance to also serve as the City Treasurer could save approximately $100,000 to $168,000 each year. As discussed in more detail below, if the law regarding a City Treasurer vacancy does not change, a special election to fill a City Treasurer vacancy could cost more than $500,000. The City would not realize any savings from modifying the City Treasurer’s compensation or moving to an appointed City Treasurer until the City Treasurer’s current term of office expires after the November 2024 election.

PREVIOUS ACTION
On May 25, 2022, the City Council considered the City Treasurer position and compensation. The staff report fr om May 25 is included as Attachment “1”. The City Council directed staff to provide further information regarding reducing the City Treasurer compensation or making the City Treasurer an appointed position.

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BACKGROUND
A voter initiative passed in 1984 (Proposition F), and modified in 1986 (Proposition N), has tied the City Treasurer’s compensation to that of the highest paid City department head. Since the voters enacted the authorizing ordinance, only the voters can mo dify it. In 2012 and 2014, t he City Council place d ballot measures to change the City of Escondido to a charter city which included language that would have resulted in an appointed City Treasurer. Both measures failed. However, the City Treasurer position may have been a peripheral issue as the ballot arguments for and against the ballot measures did not mention the City Treasurer.

1. Community Survey.

In December 2021, at the direction of the City Council’s Revenue Measure Subcommittee, a Community Opinion Survey was conducted which sought to provide the City with a statistically reliable understanding of its residents’ satisfaction, priorities, and concerns as they relate to services, facilities, and policies provided by the City. The Survey Summary Report included:

After receiving background information about the City Treasurer position, most respondents (55%) agreed that the City should eliminate the City Treasurer position. They shouldn't pay a person $135,000 a year to do a job they ma y not be qualified to do, and for which the City is outsourcing the work anyway. 1 Approximately one -quarter of respondents (26%) felt the City should keep the elected City Treasurer position. The Treasurer is meant to oversee the City's investment decisions and answers directly to the voters. An additional 18% were either unsure or unwilling to answer the question.

2. Statutory v. Actual Treasurer Duties.

State and local laws provide a wide-ranging set of tasks for the City Treasurer to accomplish. Attachment “2” provides a table of the eleven statutory duties, highlights the financial category of work performed , and identifies who performs the required tasks. The Director of Finance handles eight of the tasks. One task is unique to the City Treasurer , and another task is a catch-all provision that could be accomplished by one or both. The allocation of work evolved over time and reflects a division of labor and collaboration between the Director of Finance and the City Treasurer.

The Director of Finance is the chief accounting officer of the City. (EMC § 10 -27.) The individual must be qualified by sufficient accounting training, skill, and experience to be proficient in the office. (EMC § 10 -

17.) Further, the Director of Finance shall be independent from the City Treasurer and enjoys equal rank with the City Treasurer. (EMC § 10 -15.) The Municipal Code requires that the Director of Finance consolidate all accounting matters of the City in his/her office as an entirely separate and distinct entity from all other departments. (EMC § 10-29.) Unlike the City Treasurer, the Director of Finance works under the direction and control of the City Manager and is also responsible to the City Council. (EMC § 10-29.)

1 After the Survey, the City Treasurer requested that the City Council end the outsourced contract with an investment manager and to increase funding for staffing within the Treasurer’s General Fund budget. 223
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The Director of Finance is an at -will employee and can be fired at any time for any legitimate business reason.

The City Treasurer focuses his /her work on managing the City’s investment portfolio. The City of Escondido Annual Budget provides an accurate list of the City Treasurer’s actual duties as follows:
 Maintaining adequate bank balances to cover expenditures and investing surplus cash considering both short-term and long-term cash flow needs;
 Overseeing the City’s investment program; managing the City’s investment portfolio and investment policy in accordance with legal guidelines;
 Performing bond administration duties including trustee account reconciliation, oversight of debt service requirements and payments, and preparation of annual tax levies; and  Coordinating assigned activities with other divisions , departments, and outside agencies; and preparing and maintaining a variety of investment, bank, and bond records and reports.

As of March 31, 2022, the City Treasurer managed more than $195 million in City assets. The City Treasurer does not provide dire ct oversight of the Director of Finance or any accounting -related functions of the City. It is common for city treasurers to manage an agency’s investment portfolio and not to be involved in accounting duties.2
The City has been fortunate to have City Treasurers who work cooperatively with the Director of Finance.

However, a City Treasurer who prefers to assume all of the accounting tasks or who does not want to collaborate with the Finance Department staff would create a significant challenge for the City and could require a larger Treasurer staff than currently budgeted.

3. Full or Part-Time Treasurer Duties.

Before addressing appropriate compensation, the amount of actual work the position requires should be assessed. The voters, who are the City Treasurer’s only “supervisor,” have not addressed this issue. In 2018, a ballot measure in Torrance, California, sought to address this exact issue after their City Treasurer failed to show up for work for a year, yet still got her full salary and benefits. (See Attachment “3”, p. 5.) In his candidate statement in 2012, prior Escondido City Treasurer Ken Hugins wrote, “I have conducted my responsibilities on a part-time, reduced cost basis, returning to you hundreds of thousands of dollars

2 For example, the Carlsbad City Treasurer’s Office “is charged with the design of an effective cash management and investment program for the city and all of its agencies…” The La Mesa City Treasurer’ s primary responsibility is investing surplus funds in the City Treasury. The Oceanside City Treasurer “oversees the day-to-day management of the City’s $45 0-million-plus investment fund, ensuring this fund is protected, ample liquidity to meet the City’s budgeted expenditures is maintained, and optimal investment income is generated within the parameters of prudent risk management.”
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of my salary.” A 2005 email from Escondido Director of Finance Gil Rojas, Subject: History on Treasurers Salary, reads, “Ken Hugins took office on June 14, 1986, and according to Ken his intent was to be a part- time City Treasurer as was the previous Treasurer… On November 2, 1986, Ken Hugins requested a 50% reduction in salary. This would have set his salary at 25% of the City Attorney’s salary…On September 27, 1992, Mr. Hugins requested that this salary be increased to the full amount allowed stating that he would return one half of the total by direct payment to the city.” Over his more than 30 years as City Treasurer, records indicate Ken Hugins returned $451,268 to the City.

More recently, in a May 23, 2022 email to the City Council, City Treasurer Shultz wrote, After reviewing the notes agenda packet dealing with the agenda item regarding the Treasurer position, I would agree that the Treasurer’s salary is out of line with other Treasurer’s (sic) in San Diego County as illustrated by staff, and it should be discussed to have the Treasurer’s salary potentially reduced.

I would propose that the City Treasurer’s salary be tied to 50% of the Mayor’s salary.

While this amount will still be higher than the median Treasurer’s salary amongst those four cities, it is also far below the elected County Treasurer. 3 I believe this salary is necessary to ensure someone with the qualifications and experience will want to go through the election process and be qualified to manage the City’s investment portfolio.

In a later email, City Treasurer Shultz disagreed with a perception that he worked part-time. However, he has agreed that a substantial reduction in City Treasurer compensation would be appropriate. Thus, the statements made by our past two City Treasurers support a conclusion that the City Treasurer duties are more like a part-time job than a full-time job.

4. Compensation.

Today, the City Treasurer makes a fixed salary that does not change whether the individual works full- time, part-time, or not at all. We may have a hard -working City Treasurer today, but the City would be obligated to pay the Treasurer’s salary even if that individual chose to not work.

City Treasurer’s current salary is $105,997,4 a salary more than three times the annual salary received by City Councilmembers, $34,061.

The following chart displays the salaries of elected City Treasurers in the County.

3 The San Diego County Tr easurer is also the Tax Assessor. The Treasurer -Tax Assessor collects all property taxes in the county and manages an $11 billion investment portfolio. Because of the wide range and often overlapping duties and the independent authority of elected officials, it is not easy to compare treasurer salaries across organizations. 4 The Escondido City Treasurer also receives a $5,100 car allowance, $5,740 as a cafeteria benefit, and family health care. Total compensation exceeds $150,000.
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Table 1
Elected Treasurer Compensation in San Diego County
City Annual Salary Compensation Authority
Carlsbad $12,840 Fixed amount in Muni. Code.

Escondido $105,997 Percentage + benefits fixed by Voter Initiative La Mesa $6,948 City Council determines
National City $11,031 City Council determines
Oceanside $24,100 City Council determines
The average salary for the other four elected City Treasurer’s in San Diego County is $13,742. The Carlsbad City Treasurer receives a flat rate of $1,070/month plus a car allowance set by City Council Resolution. La Mesa, National City, and Oceanside allow the City Council to set the City Treasurer’s salary at any level they chose.

Because of the formula adopted by the voters in 1986, Escondido’s City Treasurer earns roughly 7.7 times more salary than the average salary of other elected City T reasurers in San Diego County. Changing the law to authorize the City Council to determine the City Treasurer’s salary, as done in La Mesa, National City, and Oceanside, would allow the City Council maximum flexibility to set the City Treasurer’s salary based on market demand, technical skills, education and experience, or any other reason.

5. Recent Statewide Ballot Measures.

Placing a measure on the ballot to change the current structure of the Treasurer’s position is no guarantee of success. A recent survey of ballot measures seeking to change the City Treasurer from an elected to an appointed position in California identified seven ballot measures between 2016 and 2020. Excerpts from the pertinent ballot measures and the respective arguments are included as Attachment “3”. While the facts and circumstances regarding each ballot measure varied, there may be some lessons to learn.

Only two of the seven measures succeeded. Notably, the successful measures to appoint the City Treasurer, Rio Vista in 201 8 and El Segundo in 2020, had supporting ballot arguments signed by the elected City Treasurer. In contrast, the effort to appoint the City Treasurer in Oceanside in 2020 failed by a 3 to 1 margin. In Oceanside, the City Treasurer opposed the ballot measure. Escondido’s City Treasurer has advocated retaining an elected position.

Attachment “3” also illustrates how common it is for these measures to lack ballot arguments, either for or against. Ballot arguments offer some indication of community support or opposition to a measure.

Proponents and opponents of the measure have an opportunity to submit their arguments and any 226
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rebuttals. There is no cost to submit a ballot argument and the City Council or individual Councilmembers, local organizations, or individual voters could submit a ballot argument. Measures in three cities (Angels, Torrance, and National City) had no arguments submitted in support of the measure. The City Councils had incurred t he costs of a ballot measure, but did not take advantage of their opportunity to submit supporting arguments. In Angels and National City, potential voters or community associations also did not bother to submit opposing arguments for the voter information guide. Not surprisingly, the measures with no supporting arguments failed.

Comments in support of changing the City Treasurer from an elected to an appointed position include addressing the lack of technical qualifications, professional skills, and finan ce/accounting experience.

Proponents may point to the increasingly complex nature of municipal finance, changing regulations, and the fact that two thirds of California cities have appointed treasurers. Other supportive arguments address saving taxpayer money, streamlining City operations, and improving government efficiency.

Those who oppose appointing a City Treasurer will emphasize preserving the voter’s right to elect government officials and to hold those elected officials accountable. The terms transp arency, independence, and watchdog are used to oppose a change from an elected to an appointed City Treasurer. Another trend is an emphasis on the need to avoid too much power in the city council, city manager or other “unelected bureaucrats.”
In Torrance, although no one wrote an argument in support of an appointed City Treasurer, opponents wrote, “Our City Treasurer has not been to work in over a year. She’s still getting $65,000 a year – plus a car allowance of $450 per month and benefits paid with you r taxes.” The opponents conceded that the City Council had no ability to address the City Treasurer’s lack of accountability and advocated for recalling the City Treasurer as opposed to waiving the right to vote for one. The opponents wrote, “Don’t give up our future choice because of the sins of the City Treasurer. Help us recall our City Treasurer and elect someone who will do the job.” The Torrance measure failed by an almost 2 to 1 ratio.

Finally, the lack of supporting arguments by the city councils, local associations, or other interested individuals may indicate a lack of preparation. Successful ballots are well organized, straightforward, and have community support. Those measures without ballot arguments may communicate a message of voter indifference to the measure.

6. Ballot measure opportunity.

Under state law, w hen a mayor, councilmember, or city treasurer vacancy exists, the City Council has a choice to either fill the vacancy by an election or appoint an individual to complete the term of offi ce.

However, the City’s voter-approved ordinance requires the City Council to set an election no less than 30 days and no more than 75 days from the date of the vacancy. 5 The relatively tight window to act means

5 EMC section 2-94(a) provides: If the office of Treasurer shall become vacant during the first three (3) years of the term, the city council shall set an election to be held not less than thirty (30) days nor more than seventy -five (75) days after the date on which the vacancy o ccurred for the purpose of selecting a treasurer to fill the remaining portion of the term.
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the City might be forced to conduct a special election to fill the vacancy. In such a scenario, the City would be responsible to pay all costs associated with a special election. The County Registrar of Voters verified that a special election could cost the City more than $500,000. This is not a budgeted cost.

Using the same vacancy procedures for all elected officials, as provided in state law, simplifies the process, provides greater flexibility , and could save substantial amounts of taxpayer funds. If the City Council decides to pursue a ballot measure, staff strongly recommends establishing one vacancy process for all elected officials. To do so, the voters would need to amend Escondido Municipal Code § 2 -94, Term of Office and Filling of Vacancy.

7. Timing.

The City Council could place a ballot measure on the upcoming election in November 2022. Any changes to the City Treasurer’s compensation or elected status, approved by the voters, would not b ecome effective until December 2024. Thus, the City Council has multiple opportunities to bring forward a ballot measure at later consolidated elections before Mr. Shultz’s current term in office expires.

CITY COUNCIL OPTIONS
If the City Council prefers t o act now, staff has provided two options for consideration with associated implementing ordinances and resolutions to place the proposed changes before the voters. Staff has not studied to any significant degree the viability of a City Treasurer ballot measure.

Option 1: Position Remains Elected but with Lower Salary.

Compensation should be related to job duties and responsibilities and should be adequate to ensure viable candidates seek the position. At this time there is no statutory requirements for academic, professional or experience for the City Treasurer position. Since the City Treasurer works for the voters, and the voters have not addressed whether or not the position is full-time or part-time, the City Treasurer is free to determine how and when he performs his duties. City Treasurer Shultz has indicated his support to reduce the City Treasurer salary.

Setting the City Treasurer’s compensation in an annual resolution provides maximum flexibility as the City Council can adjust the amount periodically to any level necessary to reward performance and retain competent individuals. The annual compensation resolution could also provide a check and balance on our local government expenditures. For e xample, at the federal level, the U.S. Congress sets the U.S.

President’s compensation. (3 U.S.C. 102.)

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To authorize the City Council to periodically address the City Treasurer’s salary, Escondido Municipal Code § 2-95 would be repealed and replaced to read:

Repeal Replace
Sec. 2-95. Salary and benefits.

The city council shall fix the treasurer’s salary
annually at no less than one-half (1/2) the highest
salary paid to a city department head other than
the city manager, unless a lower salary is
requested by the city treasurer, with benefits
equal to those provided such appointee.

Sec. 2-95. Salary and benefits.

The city treasurer shall receive such compensation
as may from time to time be determined by
resolution of the city council.

The proposed change would also allow the exact amount of compensation to be determined at a later date, presumably before the next City Treasurer term begins in December 2024.

The California Attorney General opined that a city council (or the electorate) has wide discretion to set a city treasurers’ salary, but not “so low a figure that no competent person would accept the office.” (84 Cal. Atty Gen.13,18.) The Attorney General acknowledged setting the city treasurer’s salary equal to that of a city councilmembers’ salary because the state-law duties of the office, “do not necessarily require the city treasurer’s full -time attention, especially if the city has a finance department responsible for performing the financial affairs of the city.” (Supra. at 18.) Given the proposed language, the City Council could address a future salary for the next term of office now, or could do so at a later date. The City Council could select the average salary of other elected city treasurers in San Diego County, $13,742, as a starting point. A major risk of lowering the salary too much, could result in a lack of viable candidates. As City Treasurer Shultz has mentioned, it costs money to run for office, and qualified individuals may not be interested in the office if the salary is too low.

City Treasurer Shultz’s proposed reduction to one half the mayor’s salary would produce an annual salary of $39,870.54 and according to Mr. Shultz should attract qualified applicants for the office. This amount remains significantly higher than the other elected city treasurers in the county and almost $6,000 more than Escondido City Councilmembers earn.

The City Council might consider matching the City Treasurer salary to the salary received by City Councilmembers, $34,061. While this amount is less than the amount suggested by the City Treasurer, it is significantly higher than the countywide elected city treasurer average. State law provides very specific guidance regarding how and when City Council salaries can be adjusted. The standard ized approach to City Treasurer and City Councilmember salaries and vacancy procedures has the value of simplicity and 229
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would allow straightforward messaging. The salary level when combined with the prestige of elected office might be enough.

If the City C ouncil decides to address the City Treasurer salary and vacancy procedures , the proposed ballot language would state:

To authorize the city council to determine the city treasurer’s compensation and to standardize vacancy procedures for all City of Escondido elected officials, shall Ordinance 2022-16 amending the Escondido Municipal Code be approved?
Option 2: Appoint Director of Finance as City Treasurer.

On May 25, 2022, the City Council asked for more information about changing the City Treasurer position from elected to appointed. The government of a general law city is vested in governing officers and employees, which include a City Treasurer. (Cal. Gov't Code § 36501(c).) The City Treasurer may be elected or appointed. The City Council may submit to the voters whether the City Treasurer should be appointed. (See Cal. Gov't Code §§ 36503, 36508 -336510.) Approximately two thirds of California cities have appointed treasurers. In San Diego County, 13 of 18 cities have appointed city treasurers.

In practice, most of a City Treasurer’s statutory duties involve accounting tasks and , in Escondido, the Director of Finance completes almost all of the accounting tasks. Cities with an appointed City Treasurer typically will hire an expert in municipal investment management to address their cash management and investment portfolio. Perhaps most importantly, any individual hired to perform the City Treasurer duties would have the requisite education, training, and experience. An appointment also means the authority to terminate employment when standards are not met.

The appointment of a City Treasurer also provides a check and balance that currently does not exist.

Today, the City Treasurer has broad latitude to do whatever he/she wants to do, both in terms of daily work and to a certain extent, the City’s investment portfolio. The City has been fortunate to have capable City Treasurers who have maintained positive and collaborative relationships with our Directors of Finance.

Statewide, a more common approach builds upon the professional acumen of a Director of Finance because they have the necessary training and experience to accomplish the City Treasurer duties . Most Directors of Finance in California also serve as City Treasurers and the functions of treasury and finance staffs are merged. Typically, Directors of Finance are hired by the City Manager. The Escondido Director of Finance already performs most of the duties required by state law, and Finance Department employees could easily manage the merger. A 2019 budget exercise by the previous Director of Finance, estimated this approach would save about $167,000 in annual personnel costs. It is the most efficient use of accounting and financial management resources and ensures an inte grated process of accounting and investment management without duplicative effort. A review of the 2023 Treasury section budget indicates the City could save $100,000 to $168,000 per year, primarily as the result of deleting the City Treasurer compensation.
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A City Treasurer and Director of Finance are mutually dependent on each other. Typically, the City Treasurer focuses on investments but all the accounting tasks, including accounting for the city’s investments, are done through the City’s financial man agement system and managed by the Director of Finance.

The City Council would continue to ensure adequate supervision and oversight of the City Manager and Director of Finance. One could make a strong argument that this approach provides greater transparency and control of municipal finances because the Director of Finance is actually supervised. In contrast, a city treasurer working only for the voters has wide latitude and little supervision into their daily activities or investment management.

If the City Council decides to pursue appointment of the City Treasurer, beginning in December 2024, the ballot measure would repeal Escondido Municipal Code Chapter 2, Article 4B, City Treasurer, and authorize the City Council to amend Escondido Municipal Code section 2-63, as follows:

Repeal Replace
Sec. 2 -63. Power to control departments,
appointive officers, employees.

The city manager shall have the power to exercise
control over all departments of the city and over
all appointive officers and employees thereof,
except the city treasurer and city attorney and
their employees.

Sec. 2 -63. Power to control departments,
appointive officers, employees.

The city manager shall have the power to exercise
control over all departments of the city and over
all appointive officers and employees thereof,
except the city attorney and their employees.

The implementing ordinance would not need to address the City Treasurer duties described in Chapter 2, Article 4B since the Director of Finance’s duties described throughout Escondido Municipal Code Chapter 10, Finance, Article 2, Director of Finance, already encompass the City Treasurer duties.

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If approved by the voters, Ordinance 2022 -17 would repeal and repla ce an obsolete provision with a statutory appointment of the Director of Finance as the City Treasurer.

Repeal Replace
Sec. 10-15. Relation to other offices.

The office of director of finance shall be
independent from the city clerk and the city
treasurer and shall enjoy equal rank with such
offices.

Sec. 10-15. City treasurer.

The director of finance shall be also be the city
treasurer and shall have and exercise all of the
powers, duties, and responsibilities of the office as
described in state and local laws.

Prospective ballot language to appoint the City Treasurer would read:

Shall the office of city treasurer be appointive?

CONCLUSION
Changing the City Treasurer’s salary or elected status requires voter approval. If the City Council prefers to act now, the Community Opinion Survey indicated support for a salary reduction or making the City Treasurer an appointed official. Ken Huggins supported a lower salary during his 30+ years of service as City Treasurer, and City Treasurer Shultz has agreed that a salary reduction would be appropriate.

Ordinance 2022-16 also addresses standardizing the vacancy process for all elected officials.

If the City Council decides to pursue a salary reduction, approval of Ordinance 2022 -16 and Resolution 2022-107R would place the matter before the voters on the November 2022 ballot.

Alternately, the City Council could approve Ordinance 2022-17 and Resolution 2022-108R to ask the voters to make the City Treasurer an appointed position.

If the City Council chooses to proceed with a ballot measure, the City Council or individual council members may submit ballot arguments for or against the proposed measure, before August 18th.

Finally, the City Council could choose to take no action as t his time, because any salary or an appointed status would not take effect until after the November 2024 election and the City Council has multiple opportunities to place a matter on a ballot before the November 2024.

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ATTACHMENTS
a. Attachment “1” – Consideration of City Treasurer Position and Compensation Staff Report, May 25, 2022
b. Attachment “2” – Statutory Duties, Finance Categories & Actual Task Performance c. Attachment “3” – Statewide City Treasurer Ballot Measures 2016 through 2022

RESOLUTIONS
a. Resolution No. 2022-107R
b. Resolution No. 2022-107 Exhibit “A”
c. Resolution No. 2022-108R
d. Resolution No. 2022-108 Exhibit “A”

ORDINANCES
a. Ordinance No. 2022-16
b. Ordinance No. 2022-17

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Attachment “1”

STAFF REPORT

May 25, 2022
File Number 0650-40

SUBJECT

CONSIDERATION OF CITY TREASURER POSITION AND COMPENSATION

DEPARTMENT
City Attorney

RECOMMENDATION

Request the City Council consider and provide direction to staff on (1) any proposed modifications to the current language in the Escondido Municipal Code relating to the City Treasurer’s position and/or salary including, but not limited to, the potential to achi eve financial savings, and (2) if required, the preparation of a ballot measure for the November 2022 general election related to the City Treasurer position and/or salary.

Staff Recommendation: None (City Attorney: Michael R. McGuinness) Presenters: Michael Morasco, City Councilmember and Michael R. McGuinness, City Attorney

FISCAL ANALYSIS
The San Diego County Registrar of Voters indicates that placement of this ballot measure on the November 2022 Gubernatorial General Election ballot could cost between $45,000 and $75,000. The actual costs will depend on how many jurisdictions participate in the election as the Registrar assigns election costs in a consolidated election through the use of a weighted average method.

Should the matter go before the voters, and there is a reduction in the salary approved by the electorate, any savings achieved by that reduction would not be realized until December 2024 at the end of the current City Treasurer’s term. Nothing prohibits, and the Escondido Municipal C ode specifically allows, the City Treasurer to accept a lower salary than that provided for under existing law.

PREVIOUS ACTION
None.

BACKGROUND
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On April 6, 2022, Councilmember Morasco requested a Future Agenda item to discuss and consider potential modifications to the City Treasurer position including whether the position should continue to be an elected position and the amount of compensation for the position provided for in the Escondido Municipal Code (“EMC”). Currently the City Treasurer position, including its duties and compensation, is provided for in EMC sections 2-93 through 2-96.4.

1. Elected Position.

State law allows a general law city such as the City of Escondido to appoint a City Treasurer. (Government Code section 36501(c).) When appointed, t he City has the authority and discretion to decide the qualifications for the eligible candidates, what responsibilities to give that position, how to staff the office, and set the amount of compensation for the position provided it is no t in conflict with State law . State law also permits the electorate to adopt an initiative measure to make the City Treasurer an elected position and to fix the compensation for that official. (84 Ops.Cal.Atty.Gen. 13 (2001) (Opinion No. 00 - 905).)
Escondido voters approved Proposition F making changes to the offices of the City Clerk and the City Treasurer. Adopted at the June 1984 election with a vote of 51.56% YES to 48.44% NO , Proposition F repealed all previous ordinances and resolutions regarding the Clerk’s and Treasurer’s positions, recommitted the Clerk and Treasurer as elected positions, limited the budget and staff size of the offices, and set a minimum salary for the positions by requiring that these elected officials receive a salary of at least one half of the highest salary of an appointed department head other than the City Manager.

Two and a half years later, on November 4, 1986, the voters approved Proposition N, the “City Clerk and City Treasurer Accountability Initiative” which amended Proposition F by clarifying ambiguous terms and simplifying regulation of these offices. The vote was 60.65% YES and 39.35% NO. Specifically, Proposition N provided that the Treasurer’s salary shall be fixed by the City Council “annually at no less than one half the highest salary paid to a City department head other than the City Manager, unless a lower salary is requested by the City Treasurer with benefits equal to those provided such appointee.” 1 In 1998, the voters adopted Proposition U which am ended Proposition N by making the City Clerk an appointive position.

Today, the City Treasurer is elected at large with a term of four years. Because the elected position of City Treasurer came about by a vote of the people, any repeal or amendment to the Code must be placed on

1 There is some confusion surrounding the actual language of the proposition. The proposition as submitted to the voters read in relevant part as follows: “…salary annually at no less that one -half the highest salary paid to an appointed City department head other than the City Manager…” However, the word “appointed” is not found in the EMC at section 2 -95 which codified Proposition N nor in Resolution No. 86 -258 which called for the holding of the election on the proposed amends to Proposition F. The word does appear in the redlined version of Proposition F which appeared in the ballot materials. The absence of the word “appointed” is not material to the implementation of the ordinance.
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a ballot for a public vote. (Elections Code section 9222.) Further, EMC section 2-93 specifically provides that “The office of treasurer of the City of Escondido is created as an elected position … unless repealed, or amended by the state legislature or the people of the City of Escondido by public vote.” The current City Treasurer, Douglas W. Shultz, has served in that role since first elected in 2016. In 2020, given the absence of any declared candidates for th e position, and pursuant to Elections Code section 10299, the City Council adopted Resolution No. 2020-121 to appoint Mr. Shultz as City Treasurer effective December 9, 2020. The City Treasurer’s current term expires in December 2024.

2. Duties and Responsibilities.

Pursuant to the Code, the City Treasurer has the following duties and responsibilities:

1. Receive directly or through other departments of the city all monies collected by or on behalf of the city and hold same for deposit or investment;

2. Make disbursements for expenditures authorized by the city council;

3. Perform all other functions necessarily incidental to the proper fulfillment of the treasurer’s duties and responsibilities; and

4. With the City Council, annually select an independent cert ified public accountant to conduct an audit of the internal controls of the office of city treasurer. (EMC sections 2-96.3, 2-96.4.) In addition to the above, State law provides additional duties for a City Treasurer. (Government Code section 41001 -41007; sections 53630 et. seq .) As to the internal functions of the office of the City Treasurer, the official has sole responsibility for management of the office including the appointment of a deputy treasurer, hiring and discharge of employees and developing budgets for operating and capital expenditures. (EMC section 2-96.2.) At this time, the City Treasurer’s Office has the following staff: the City Treasurer, an Accountant I, and a Senior Accounting Assistant . The draft General Fund FY 2022/23 Operating Budget for the City Treasurer’s Office as of May 11, 2022, was $238,080.

The City’s Human Resources Department has studied how other municipalities in San Diego County staff a city treasurer position. In the County, there are 13 public agencies which have typical or statutory city treasurer functions performed by the Director of Finance or Director of Administrative Services .

Escondido is one of five public agencies in the County with an elected City Treasurer. The other cities are Oceanside, Carlsbad, National City, and La Mesa. The County of San Diego also has an elected treasurer referred to as the County Treasurer – Tax Collector.

3. City Treasurer Salary.

As noted above, p ursuant to EMC section 2-95, the City Council is required to fix the treasurer’s salary “annually at no less than one half the highest salary paid to a city department head other than the City Manager, unless a lower salary is requested by the city treasurer, with benef its equal to those provided 236
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such appointee.” At this time, Mr. Shultz has a salary of $105,997 and receives benefits consistent with other city employees at that salary range.

A review of the salaries for elected city treasurers in San Diego County reflects that the median salary for that position is $12,840. The following are the current salaries: Oceanside ($24,190); Carlsbad ($12,840); National City ($11,031) and La Mesa ($6,948). As a result, Mr. Shultz’s salary has a variance of 87.89% above the median.

Similar to the length of the City Treasurer’s term, State law does not permit the City to directly or indirectly reduce this official’s compensation and/or benefits during a pending term. (80 Ops.Cal.Atty.Gen. 119 (1997) (Opinion No. 97 -103) (employment relationship between elected officials and city is contractual and reduction in compensation during term of office would impair the obligation of a contract or deprive official of vested property right); Betts v. Board of Administration (1978) 21 Cal.3d 859, 863 (compensation and retirement benefits for office of State Treasurer are contractually vested upon acceptance of employment).

CONCLUSION
At this time, City staff seek direction from the City Council on any proposed changes to the EMC related to the City Treasurer’s office which would be brought forward for a public vote at the November 2022 Gubernatorial General Election.

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Attachment “2”
Statutory Duties, Finance Category & Actual Task Performance

Statutory Duties Finance Category Actual Responsible Party The city treasurer shall make withdrawals from such a
fund only on order signed by the proper department head and for the following purposes:

(a) Making a refund of bail, which has been exonerated, or other refundable deposits.

Cal. Gov't Code § 36524
Accounting Director of Finance
(b) Revolving fund advances authorized by the city
council.

Cal. Gov't Code § 36524
Accounting Director of Finance
(c) Correction of clerical or ministerial errors in the receipt of payments to the city.

Cal. Gov't Code § 36524
Accounting Director of Finance
(d) Making settlements with city funds at the end of each calendar month for collections accumulated during the
month.

Cal. Gov't Code § 36524
Accounting Director of Finance
The city treasurer shall comply with all laws governing the deposit and securing of public funds and the handling of trust funds in his or her possession.

Cal. Gov't Code § 41002(a)
Accounting Director of Finance
If the city has issued bonds, the city treasurer shall use a system of accounting and auditing that adheres to
generally accepted accounting principles.

Cal. Gov't Code § 41002(b)
Investments Treasurer Section in
Department of Finance
The city treasurer shall pay out money only on warrants signed by legally designated persons.

Cal. Gov't Code § 41003
Accounting Director of Finance
Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and
accounting of all receipts, disbursements, and fund
balances. The city treasurer shall file a copy with the legislative body.

Cal. Gov't Code § 41004
Accounting Not currently completed1

1 The City has a pending Request for Proposals that will address improved financial reporting capabilities that would allow the Director of Finance to complete this task.
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Attachment “2”
Statutory Duties, Finance Category & Actual Task Performance

Statutory Duties Finance Category Actual Responsible Party The city treasurer shall perform such duties relative to the collection of city taxes and license fees as are
prescribed by ordinance.

Cal. Gov't Code § 41005
Accounting Director of Finance
Duties and responsibilities
In addition to those functions, duties, and
responsibilities mandated by state law and herein, the
treasurer shall in accordance with all applicable
provisions of state law governing the duties and
responsibilities of the treasurer with respect to the
handling of city funds:

(1) Receive directly or through other departments of
the city all monies collected by or on behalf of the city and hold same by deposit or investment.

EMC Sec. 2-96.3
Accounting Director of Finance
(2) Make disbursements for expenditures authorized
by the city council.

EMC Sec. 2-96.3
Accounting Director of Finance
(3) Perform all other functions necessarily incidental to the proper fulfillment of the treasurer’s duties and responsibilities. Nothing in this section shall relieve the city council from its fiduciary responsibility with respect to city funds, for which both the city treasurer and city council shall be held accountable.

EMC Sec. 2-96.3
Not Specified Catch all provision that
could be performed by the
City Treasurer or the
Director of Finance

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ATTACHMENT X CITY TREASURER STATEWIDE MEASURES (2016 – 2022) Attachment “3”
Statewide City Treasurer Ballot Measures 2016 thru 2022

1 Rio Vista 2016 [Passed]. The city council placed a measure on the November general election to appoint the city treasurer. Rio Vista, Solano County has a population of 7,360. The measure passed with 2593 votes and 2074 opposed (55.56 % / 45.44%). The City Treasurer wrote the argument in favor of the change to an appointed position. The Solano County Taxpayers Association opposed the measure. The following table highlights excerpts from the voter information pamphlet.

Arguments in Favor Arguments Against

The City Treasurer function requires professional
skills and expertise in municipal fund accounting,
government reporting requirements, investment
regulations and debt management; yet, State
statute only requires that an applicant be at least
21 years of age and a resident of the city--criteria
regarding technical or financial skills or
experience are not factors.

Municipal government and regulations have
become more complex and the responsibilities of
the City Treasurer require increasing levels of
training and experience. Knowledge and
experience in any or all of these areas can be
criteria for an appointed treasurer – and may
never be criteria for an elected treasurer.

Assigning the treasurer duties to finance
professional makes good sense. The duties can
be assigned to a finance professional (CPA, CIA,
etc.) who would have ethical and professional
standards to which they swear (or affirm).

Failure to follow those standards is cause for loss
of their professional license and therefore loss of
ability to earn an income. The City of Rio Vista
also has an Investment and Financial Review
Committee that provides additional oversight of
the City’s finances.

Today you have the right to run for the office of
City Treasurer. Today you have the right to vote
for whom you believe is the best candidate to
City Treasurer. Today you can hold your City
Treasurer accountable for their actions by virtue
of your vote. If Measure N passes you will lose
and FOREVER FORFEIT THOSE RIGHTS!
Shall we give away our constitutional right, our
voice, our power of vote and let a select few
appoint whomever they see fit?
VOTE NO on Measure N. The City Treasurer’s
Office is independent from the City Council and,
by law, is responsible for the receipt, custody,
deposit, disbursement and investment of all City
funds.

VOTE NO on Measure N. maintain the people’s
right and power to elect government
representatives! Support a transparent,
accessible government with integrity and
accountability.

Vote no on measure n. changing the job to an
appointed position takes oversight away from
voters and chisels away at the democratic
process. An appointed city treasurer does not
have to live in Rio Vista but will be managing
YOUR money.

The city treasurer should not be relegated to an
appointed bureaucrat. The checks and balances
of an elected city treasurer were important to
the creators of our Constitution – they need to
be maintained to assure good, honest
government.

The treasurer needs to be accountable to the
people because he/she manages their money. As
an elected official, citizens may judge the official
and recall if necessary.

THIS IS A NO BRAINER! Who will want to give up
an elected position for an appointee who will
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ATTACHMENT X CITY TREASURER STATEWIDE MEASURES (2016 – 2022) Attachment “3”
Statewide City Treasurer Ballot Measures 2016 thru 2022

2 not even have to be a resident of the City of Rio
Vista? VOTE NO ON MEASURE N.

REBUTTAL to Argument in Favor of MEASURE N

The proponent of Measure "N" argues that a
"yes" vote will ensure that the City’s finances will
have the best oversight possible. The only thing
a yes vote on Measure "N" will ENSURE is the
voters will lose their constitutional right to vote
a City Treasurer in or out of Office!! Do you
really want 5 people in a city of 8,000 appointing
and controlling your City Treasurer? Do you
really trust them to make this type of
decision???

An elected City Treasurer is independent from
the City Council and, by law, is responsible for
the receipt, custody, deposit, disbursement and
investment of all City funds. What are the
qualifications and skills of the City Council who
want the power to appoint a City Treasurer??

Irresponsible spending needs to be watched by
an elected Treasurer. Obviously, the Council
wants you to believe that it’s not important to
have an elected Treasurer as an INDEPENDENT
check on their actions.

How can the Treasurer be truly independent if
that person is hired/fired/controlled by the City
Manager and City Council? Remember the City
of Bell: look how that turned out with their
supposed “internal” controls!

Just ask yourself: Why the city wants to change
the City Treasurer’s Office from Elective to
Appointive?" Why the current elected City
Treasurer is the sole proponent of the
“argument in favor?” What do they want to
hide?

DO NOT BE FOOLED INTO GIVING UP YOUR
RIGHT TO VOTE FOR YOUR CITY TREASURER!

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ATTACHMENT X CITY TREASURER STATEWIDE MEASURES (2016 – 2022) Attachment “3”
Statewide City Treasurer Ballot Measures 2016 thru 2022

3 Proponents and opponents did not submit rebuttal arguments.

Angels 2018 [Failed]. The City Council of Angels in Calaveras County placed a measure to make the city clerk and city treasurer appointed positions. Angels has a population of 3,826. The measure failed 604 votes opposed to 583 in favor (50.88 % / 49.12%). The city attorney impartial analysis repeated the state law authority to make the change. However, no proponents or opponents submitted arguments for the sample ballot and voter information guide.

Arguments in Favor Arguments Against
None None

Ceres 2018 [Failed]. Later that year, on the November 2018 general election ballot, voters rejected a city council effort to change the city treasurer from an elected to appointed position. Ceres, in Stanislaus County has a population of 49,302. The vote failed by almost a two to one margin, 6,952 opposed to 3,821 in favor (64.53%/35.47%). The following table highlights excerpts from proponents of the measure.

Arguments in Favor Arguments Against
Transitioning to an appointed City Treasurer will
save taxpayer money, streamline City operations
and ensure only the most qualified individuals are
eligible to hold this critically important position.

State law only provides that an elected City
Treasurer has to be 18 years old and a resident of
the city. An appointed City Treasurer would be
required to have technical qualifications,
professional skills and finance background and
experience in order to meet the requirements for
the job.

City government, state laws and federal
regulations have become more complex and the
responsibilities of the City Treasurer require
increasing levels of education, training and
experience. An appointed City Treasurer would be
required to meet these requirements. An elected
City Treasurer is not required to meet these
requirements.

The elected officials who oversee the city’s
finances need qualified professionals to assist
them in their review of government accounting,
budgeting, financial markets and investment
policies in order to best serve the public.

None.
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ATTACHMENT X CITY TREASURER STATEWIDE MEASURES (2016 – 2022) Attachment “3”
Statewide City Treasurer Ballot Measures 2016 thru 2022

4 Assigning the City Treasurer duties to a finance
professional just makes good common sense. In
addition, this measure would also save the city
money since we would not have to pay to hold an
election for City Treasurer every four years.

For all of these reasons, the undersigned
members of the Ceres City Council urge you to
support Measure X.

Proponents and opponents did not submit rebuttal arguments.

Torrance 2020 [Failed]. At a March election, voters rejected an effort to amend the city charter to make the city treasurer an appointed position, 22,965 opposed and 13692 in support (64.55% / 37.35%).

Torrance is in the Los Angeles County with a population of 147,067. The city council had placed the measure on the ballot. The city attorney’s impartial analysis noted that an appointed position would allow the city council to establish professional skills and experience requirements to competently and responsibly discharge the duties of the office. Similar to Escondido, the city treasurer in Torrance manages the city investment of funds, prepares a monthly investment report, files monthly investment report with the city council and prepares the annual investment policy.

Despite incurring the costs of placing the matter on the bal lot, the city council did not submit a ballot argument in support of the measure and no one else submitted an argument in support of the change. As you will see below, the opponents of the measure did participate.

Arguments in Favor Arguments Against
None BEWARE. Voting for Measure J takes away your
choice and gives it to one person—an unelected
City Manager. Even the City Council will have no
say in who is the City Treasurer. You will have
given tremendous power to a city bureaucrat
that you cannot remove from office.

HAS HAPPENED BEFORE. In 1992, this same
issue was on that ballot. Then, it was an issue
with a City Clerk not doing the job but still
getting paid rather than the City Treasurer.

Torrance voters rejected that measure by more
than 2 to 1. Torrance is a large city. We can find
a capable City Treasurer, from among 150,000+
residents. A full-time City Treasurer should be a
Torrance resident! If qualified candidates are
willing to move to Torrance, they are eligible
too.
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ATTACHMENT X CITY TREASURER STATEWIDE MEASURES (2016 – 2022) Attachment “3”
Statewide City Treasurer Ballot Measures 2016 thru 2022

5 We are not opposed to at some future point, a
Charter amendment requiring reasonable
education, qualifications and skills for anyone
running for City Treasurer.

MAKES NO DIFFERENCE. Passing Measure J will
not replace the City Treasurer. Our City
Treasurer hasn't been to work in over a year.

She's still getting paid $65,000 a year—plus a
car allowance of $450 per month and other
benefits paid with your taxes. This can go on
until July 2022— the remainder of her term.

There's nothing the City Council can do about it
because she's an elected official. Measure J will
not replace her. Even if Measure J passes, it will
not take effect until her term ends.

CITY TREASURE IS THE PROBLEM
Please Vote No on Measure J. Help us keep our
elected City Treasurer. Don't give up future
choice for the sins of the City Treasurer. Help us
recall our City Treasurer and elect someone who
will do the job.

El Segundo 2020 [Passed]. In March voters approved a measure to appoint the city treasurer with 3,356 votes and 1,821 opposed (64.83% / 35.17%). El Segundo is a small city in Los Angeles County with a 16,731 population. The City Council placed the measure on the ballot. Signature s on the ballot argument in support included the city treasurer, the mayor, the mayor pro tem, and two councilmembers. No one submitted an opposing argument or rebutted the argument in favor.

Arguments in Favor Arguments Against
Vote "Yes" on Measure T to improve government
efficiency and save taxpayer money.

El Segundo currently elects a part-time Treasurer
to manage the City's cash and investments of
$100 million. The only requirements to be the
elected Treasurer is that you must be 18 years of
age or older and a resident of the City. There are
no educational or experience requirements to be
the Treasurer.

None.
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ATTACHMENT X CITY TREASURER STATEWIDE MEASURES (2016 – 2022) Attachment “3”
Statewide City Treasurer Ballot Measures 2016 thru 2022

6 Two-thirds of California cities have converted
their elected Treasurer to an appointed position
in an effort to streamline government financial
operations, increase transparency, as well as
reduce salary costs. By appointing a City
Treasurer, existing overlapping duties in the
finance functions will be eliminated and will place
responsibility for managing the City's cash and
investments with a qualified and experienced
finance professional.

The City will save approximately $39,000 per year
in salary, health insurance and retirement
benefits. In addition, the City will maintain
complete transparency of its finances and will
continue with its longstanding practice of annual
audits by independent third-party accounting
firms.

Measure T is a step forward in making
government more responsible and efficient while
increasing transparency and reducing spending on
salaries.

National City 2020. In March, voters rejected a measure that would appoint the city treasurer and the city clerk with 4,059 opposed and 3,747 in support (53% / 48%). National City has a population of 58,582. Once again, although the city council placed the matter on the ballot a nd incurred the costs associated with a ballot measure, the city council did not support the measure with a ballot argument. In fact, no one submitted an argument in support of or opposed to the change in city organization.

Arguments in Favor Arguments Against
None None

Oceanside 2020 [Failed]. On the March 2020 ballot, Oceanside voters rejected, by a 3 to 1 margin, an effort to make both the city treasurer and the city clerk appointed positions with 34,472 opposed and 11,384 in favor (75.2% / 24.8%). The mayor, city clerk (Zach Beck), and three community members signed the ballot argument in support of the change. The city treasurer, a city councilmember, the president of the Democratic Club of Oceanside and two community members submitted argument in opposition to the measure. Excerpts from the argument include:

Arguments in Favor Arguments Against
Growing complexities of municipal governance
and finance necessitate that highly qualified
Both the City Clerk and City Treasurer should be
elected, independent watchdogs, not
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ATTACHMENT X CITY TREASURER STATEWIDE MEASURES (2016 – 2022) Attachment “3”
Statewide City Treasurer Ballot Measures 2016 thru 2022

7 professionals serve as City Clerk and City
Treasurer.

Converting the two elected positions to City
Manager-appointed positions will ensure
personnel performing related duties are selected
based on job-related qualifications, not
popularity.

The City Clerk serves as the compliance officer for
federal, state and local statutes, and oversees our
increasingly complex election process.

The City Treasurer is responsible for investing the
City’s funds for safety, liquidity and returns, but
there are no professional qualifications to hold
this office, just the ability to win an election.

Most neighboring cities fill the roles of City Clerk
and City Treasurer through appointment.

subordinates of the City Council appointed City
Manager.

The City Clerk and the City Treasurer are
currently answerable to the public, free from
City Manager and City Council interference, and
can be recalled; not the case if the positions are
appointed.

Amendment to the City Code that expands City
Manager appointment authority occurred
without public input.

This measure has been on the Oceanside ballot
before and failed by 85%.

Under this measure, one person will hire and
appoint both the City Clerk and City Treasurer
and they won’t have to live in Oceanside.

Too much power concentrated in one person.

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ORDINANCE NO. 2022-16

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ESCONDIDO, CALIFORNIA, ADDING ARTICLE 2, SECTION
2-25 TO CHAPTER 2 OF THE ESCONDIDO MUNICIPAL

CODE TO AUTHORIZE THE CITY COUNCIL TO DETERMINE
THE CITY TREASURER’S COMPENSATION AND TO

STANDARDIZE VACANCY PROCEDURES FOR AL L CITY OF

ESCONDIDO ELECTED OFFICIALS

WHEREAS, in a Community Opinion Survey Summary Report, prepared for the City of Escondido (“City”) and published on December 31, 2021, found that “After receiving background information about the City Treasurer position, most respondents (55%) agreed that the City should eliminate the City Treasurer position. They shouldn't pay a person $135,000 a year to do a job they may not be qualified to do, and for which the City is outsourcing the work anyway.” and WHEREAS, a voter initiative passed in 1984 (Proposition F), and modified in 1986 (Proposition N), has tied the City Treasurer’s compensation to that of the highest paid City department head and could result in the City paying $500,000 for a special election to fill a City Treasurer vacancy; and WHEREAS, the voters did not place any specific education, training, or experience requirements for a City Treasurer; and
WHEREAS, since, the voters enacted the Propositions F and N, only the voters can modify the City Treasurer’s compensation and vacancy procedures; and
WHEREAS, the City Council believes the City Treasurer position is not a full time job; and WHEREAS, the City of Escondido ’s City Treasurer receives approximately $150 ,000 in total compensation; and
WHEREAS, using the same vacancy provisions for the City Treasurer, City Councilmembers , and the Mayor will allow the City Council to assess all options when a vacancy occurs in any City of Escondido elected office; and
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WHEREAS, if approved by the voters, the proposed ordinance will allow the City Council to pay the City Treasurer appropriate compensation based on the City Treasurer’s education, training, experience and services provided to the City; and
WHEREAS, California Government Code section 36517 states, “the city treasurer shall receive, at stated times, a compensation fixed by ordinance or resolution;” and WHEREAS, California Government Code section 36512 authorizes the City Council to fill a vacancy in the elected offices of the City of Escondido within 60 days from the commencement of the vacancy, either fill the vacancy by appointment or call a special election to fill the vacancy; and WHEREAS, on May 25, 2022, the City Council directed t he City Attorney to prepare a ballot measure for consideration of voter approval to address the City Treasurer’s compensation.

NOW, THEREFORE, subject to approval by an affirmative, simple majority vote of the people as required by law, THE PEOPLE OF THE CITY OF ESCONDIDO, CALIFORNIA, DO ORDAIN AS FOLLOWS:

SECTION 1. The Escondido Municipal Code is revised to repeal Chapter 2 - Administration, Article 4B - City Treasurer, Section 2-94 – Terms of office and filling of vacancy.

SECTION 2. The Escondido Municipal Code is revised to repeal and replace Chapter 2 - Administration, Article 4B - City Treasurer, Section 2-95. Salary and benefits. as follows:

The city treasurer shall receive such compensation as may from time to time be determined by resolution of the city council.

SECTION 3. ENVIRONMENTAL ANALYSIS. This Ordinance is exempt from review under the California Environmental Quality Act (California Public Resources Code sections 2100, et. seq., “CEQA”) and CEQA Regulations (14 Californi a Code of Regulations sections 1500, et. seq.) because it establishes rules and procedures to implement government funding mechanisms; does not have any commitment to 248
Item12.

a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this Ordinance does not constitute a “project” that requires environmental review (14 CCR section 15378(b)(4-5)).

SECTION 4. INCONSISTENT PROVISIONS. Any provisions of the Escondido Municipal Code, or appendices thereto, or any other ordinances of the City inconsistent herewith, to the extent of such inconsistencies and no further, are hereby repealed.

SECTION 5. This Ordinance shall take effect immediately, upon approval by a simple majority of the voters, voting on the question at the November 8, 2022 election.

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RESOLUTION NO. 2022-107R

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, CALLING FOR THE HOLDING

OF A GENERAL MUNICIPAL ELECTION ON TUESDAY,
NOVEMBER 8, 2022, FOR THE SUBMISSION OF A

PROPOSED ORDINANCE TO AUTHORIZE THE CITY
COUNCIL TO DETERMINE THE CITY TREASURER’S

COMPENSATION AND TO STANDARDIZE VACANCY

PROCEDURES FOR AL L CITY OF ESCONDIDO ELECTED
OFFICIALS; CONSOLIDATING THE ELECTION WITH THE

STATEWIDE ELECTION, REQUESTING THE BOARD OF

SUPERVISORS OF THE COUNTY OF SAN DIEGO TO

PERMIT THE REGISTRAR OF VOTERS TO CONDUCT THE
ELECTION; AND DIRECTING THE CITY ATTORNEY TO

PREPARE AN IMPARTIAL ANALYSIS

The city treasurer shall receive such compensation as may from time to time be determined by resolution of the city council; and
WHEREAS, the City Council is authorized by statue to submit the proposed ordinance to the voters; and
WHEREAS, in accordance with State elections law, the City Council of the City of Escondido has called a General Municipal Election to be held in the City of Escondido, California, on Tuesday, November 8, 2022; and
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WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date; that the City precincts, polling places and ele ction officers of the two elections be the same; that the Registrar of Voters canvas the returns of the General Municipal Election; and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido , California as follows:

1. That the above recitations are true.

2. That pursuant to the requirements of the laws of the State of California there shall be and there is hereby called and ordered to be held in the City of Escondido, California, on Tuesday, November 8, 2022, a General Municipal Election for the purpose of submitting the following proposed ordinance , to authorize the city council to determine the city treasurer’s compensation and to standardize vacancy procedures for all City of Escondido elected officials, to the qualified electors of the City of Escondido.

3. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election on November 8, 2022, the following question:

Yes

4. That the text of the Ordinance submitted to the voters is attached as Exhibit “A” and incorporated into this resolution by this reference.
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6. Pursuant to Califor nia Elections Code section 9282, the City Council hereby acknowledges its authority, and the authority of any individual voter who is eligible to vote on the measure, or bona fide association of citizens, or any combination of voters and associations, to submit a written argument, not to exceed 300 words, for or against the measure. Arguments must be submitted to the City Clerk, and may be changed until and including the date fixed by the City Clerk, after which no arguments for or against the measure may be submitted, withdrawn or changed.

8. Pursuant to California Elections Code section 9280, the City Clerk is directed to transmit a copy of the measure to the City Attorney. The City Attorney is directed to prepare an impartial analysis of the measure, not to exceed 50 0 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk by the date fixed by the City Clerk.

9. Pursuant to California Elections Code section 10403, the Board of Supervisors of the County of San Diego is hereby requested to permit the Registrar of Voters to perform and render all services and proceedings, and to procure and furnish any and all official ballots, notices, printed 252
Item12.
matter and all supplies a nd equipment and paraphernalia incidental to and connected with the conduct of the subject election of the City of Escondido, with the cooperation and assistance of the City Clerk of the City of Escondido, in order to properly and lawfully conduct such ele ction.

10. The Board of Supervisors of the County of San Diego is hereby requested to consolidate this election with the statewide election to be held on the same day, in the same territory. Pursuant to California Elections Code section 10411 and section 10418: (a) the election shall be held in all respects as if there were only one election; (b) only one form of ballot shall be used; and (c) the Registrar of Voters of the County of San Diego shall canvass the returns of the subject election as part of the canvass of the returns of the election consolidated hereby.

11. Pursuant to California Elections Code sections 10410 and 10418, within the territories affected by this consolidation, the elections precincts, polling places, voting booths and poling hours shall, in every case, be the same, and there shall be only one se t of election officers in each of the precincts.

13. That the ballots to be used at the election shall be, both as to form and matter contained in form and content as required by law.

14. City requests Measure titled as Measure G.

15. That the vote requirement for the measure to pass is a majority (50%+1) of the votes cast.

16. The County of San Diego shall be reimbursed in full for the services performed by the registrar of Voters for the City of Escondido upon presentation of a bill therefor, and this City agrees to 253
Item12.
indemnify and save free and harmless the County, its officers, agents and employees from expense or liability, including reasonable attorney’s fees, as a result of an election contest arising from this election.

17. The City Council finds that this Resolution is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, Ca lifornia Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

18. That in all particulars not otherwise recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

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ORDINANCE NO. 2022-16

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ESCONDIDO, CALIFORNIA, ADDING ARTICLE 2, SECTION
2-25 TO CHAPTER 2 OF THE ESCONDIDO MUNICIPAL

CODE TO AUTHORIZE THE CITY COUNCIL TO DETERMINE
THE CITY TREASURER’S COMPENSATION AND TO

STANDARDIZE VACANCY PROCEDURES FOR AL L CITY OF

ESCONDIDO ELECTED OFFICIALS
WHEREAS, in a Community Opinion Survey Summary Report, prepared for the City of Escondido (“City”) and published on December 31, 2021, found that “After receiving background information about the City Treasurer position, most respondents (55%) agreed that the City should eliminate the City Treasurer position. They shouldn't pay a person $135,000 a year to do a job they may not be qualified to do, and for which the City is outsourcing the work anyway.” and WHEREAS, a voter initiative passed in 1984 (Proposition F), and modified in 1986 (Proposition N), has tied the City Treasurer’s compensation to that of the highest paid City department head and could result in the City paying $500,000 for a special election to fill a City Treasurer vacancy; and WHEREAS, the voters did not place any specific education, training, or experience requirements for a City Treasurer; and
WHEREAS, since, the voters enacted the Propositions F and N, only the voters can modify the City Treasurer’s compensation and vacancy procedures; and
WHEREAS, the City Council believes the City Treasurer position is not a full time job; and WHEREAS, the City of Escondido ’s City Treasurer receives approximately $150 ,000 in total compensation; and
WHEREAS, using the same vacancy provisions for the City Treasurer, City Councilmembers , and the Mayor will allow the City Council to assess all options when a vacancy occurs in any City of Escondido elected office; and
Resolution No. 2022-107
Exhibit "A"

Page 1 of 3 ends

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NOW, THEREFORE, subject to approval by an affirmative, simple majority vote of the people as required by law, THE PEOPLE OF THE CITY OF ESCONDIDO, CALIFORNIA, DO ORDAIN AS FOLLOWS:

SECTION 1. The Escondido Municipal Code is revised to repeal Chapter 2 - Administration, Article 4B - City Treasurer, Section 2-94 – Terms of office and filling of vacancy.

SECTION 2. The Escondido Municipal Code is revised to repeal and replace Chapter 2 - Administration, Article 4B - City Treasurer, Section 2-95. Salary and benefits. as follows:

The city treasurer shall receive such compensation as may from time to time be determined by resolution of the city council.

Page 2 of 3 ends

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SECTION 5. This Ordinance shall take effect immediately, upon approval by a simple majority of the voters, voting on the question at the November 8, 2022 election.

Resolution No. 2022-107
Exhibit "A"

Page 3 of 3 ends

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ORDINANCE NO. 2022-17

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, REPEALING ESCONDIDO
MUNICIPAL CODE CHAPTER 2 - ADMINISTRATION,
ARTICLE 4B – CITY TREASURER, AND AMENDING THE

ESCONDIDO MUNICIPAL CODE TO AUTHORIZE THE CITY

MANAGER TO APPOINT THE CITY TREASURER

WHEREAS, in a Community Opinion Survey Summary Report prepared for the City of Escondido (“City”) and published on December 31, 2021, found that “After receiving background information about the City Treasurer position, most respondents (55%) agreed that the City should eliminate the City Treasurer position. They shouldn't pay a person $135,000 a year to do a job they may not be qualified to do, and for which the City is outsourcing the work anyway.” and WHEREAS, a voter initiative passed in 1984 (Proposition F), and modified in 1986 (Proposition N), has tied the City Treasurer’s compensation to that of the highest paid City department head and could result in the City paying $500,000 for a special election to fill a City Treasurer vacancy; and WHEREAS, the voters did not place any specific education, training, or experience requirements for a City Treasurer; and
WHEREAS, since the voters enacted the Propositions F and N, only the voters can modify the City Treasurer’s compensation and vacancy procedures; and
WHEREAS, California Government Code section 36508 authorizes the city council to submit to the electors the question whether the City Treasurer shall be appointed by the city council; and WHEREAS, California Government Code section 36509 requires the question to be printed on a ballot to appoint a City Treasurer shall substantially be in the following form, “Shall the office of city treasurer be appointive?”; and
WHEREAS, California Government Code section 36510 authorizes, if approved by a majority of votes cast, the City Council shall appoint the City Treasurer at the expiration of the term of the officers 258
Item12.

then in office, and on a vacancy in any such office, and the city council may by ordinance vest in the city manager its authority to appoint the City Treasurer; and WHEREAS, the City Council believes the City Treasurer position is not a full time job; and WHEREAS, the City of Escondido ’s City Treasurer receives approximately $150 ,000 in total compensation; and
WHEREAS, the Director of Finance already accomplishes most of the statutory duties assigned to a City Treasurer in state law; and
WHEREAS, appointment of a City Treasurer by the City Council would ensure the person selected for the position had the education, training and experience necessary to manage the City’s investment portfolio; and
WHEREAS, appointment of a City Treasurer would allow improved transparency, supervision and accountability of the City Treasurer by the City Manager and the City Council; and WHEREAS, the merger of the City Treasurer duties with the duties of the Director of Finance would enable more efficient financial m anagement of the City resources while allowing significant annual savings; and
WHEREAS, on May 25 , 202 2, the City Council directed the City Attorney to prepare a ballo t measure for consideration of the voters to address appointment of the City Treasurer.

NOW, THEREFORE, subject to approval by an affirmative, simple majority vote of the people as required by law, THE PEOPLE OF THE CITY OF ESCONDIDO, CALIFORNIA, DO ORDAIN AS FOLLOWS:

SECTION 1. The Escondido Municipal Code is revised to repeal Chapter 2 - Administration, Article 4B - City Treasurer.
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SECTION 2. The Escondido Municipal Code Chapter 2 – Administration, Article 2 – City Manager, Section 2-63, Power to control departments, appointive officers, employees is repealed and replaced as follows:

The city manager shall have the power to exercise control over all departments of the city and over all appointive officers and employees thereof, except the city attorney and their employees.

SECTION 3. The Escondido Municipal Code Chapter 10 – Finance, Article 2 – Director of Finance, Section 10-15, Relation to other offices, is repealed and replaced as follows:

City treasurer.

The director of finance shall be also be the city treasurer and shall have and exercise all of the powers, duties, and responsibilities of the office as described in state and local laws.

SECTION 4. ENVIRONMENTAL ANALYSIS. This Ordinance is exempt from review under the California Environmental Quality Act (California Public Resources Code sections 210 0, et. seq., “CEQA”) and CEQA Regulations (14 California Code of Regulations sections 1500, et. seq.) because it establishes rules and procedures to implement government funding mechanisms; does not have any commitment to a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this Ordinance does not const itute a “project” that requires environmental review (14 CCR section 15378(b)(4-5)).
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SECTION 5. INCONSISTENT PROVISIONS. Any provisions of the Escondido Municipal Code, or appendices thereto, or any other ordinances of the City inconsistent herewith, to th e extent of such inconsistencies and no further, are hereby repealed.

SECTION 6. This Ordinance shall take effect immediately, upon approval by a simple majority of the voters, voting on the question at the November 8, 2022 election.

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RESOLUTION NO. 2022-108R

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, CALLING FOR THE HOLDING

OF A GENERAL MUNICIPAL ELECTION ON TUESDAY,
NOVEMBER 8, 2022, FOR THE SUBMISSION OF A

PROPOSED ORDINANCE TO REPEAL ESCONDIDO
MUNICIPAL CODE ARTICLE 4B - CITY TREASURER AND

AMENDING THE ESCONDIDO MUNICIPAL CODE TO

AUTHORIZE THE CITY MANAGER TO APPOINT THE CITY
TREASURER; CONSOLIDATING THE ELECTION WITH THE

STATEWIDE ELECTION, REQUESTING THE BOARD OF

SUPERVISORS OF THE COUNTY OF SAN DIEGO TO

PERMIT THE REGISTRAR OF VOTERS TO CONDUCT THE
ELECTION; AND DIRECTING THE CITY ATTORNEY TO

PREPARE AN IMPARTIAL ANALYSIS
WHEREAS, the California Elections Code Section 9222, authorizes the City Council to submit to the voters a proposition for the enactment of any ordinance, to be voted upon at any succeeding regular city election, and if the proposition submitted receives a majority of the votes cast on it at the election, the ordinance shall be or enacted accordingly; and
WHEREAS, the City Council of the City of Escondido has adopted Ordinance No. 2022-17, which is attached hereto and incorporated herein as Exhibit “A”, to repeal Escondido Municipal Code Chapter 2, Article 4B – City Treasurer; and to repeal and replace Escondido Municipal Code Chapter 2, Article 2 – City Manager, Section 2-63, Power to control departments, appointive officers, employees; and to repeal and replace Escondido Municipal Code Chapter 10, Article 2 – Director of Finance, Section 10-15, Relation to other offices; and
WHEREAS, the City Council is authorized by statue to submit the proposed ordinance to the voters; and
WHEREAS, in accordance with State elections law, the City Council of the City of Escondido has called a General Municipal Election to be held in the City of Escondido, California, on Tuesday, November 8, 2022; and
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WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date; that the City precincts, polling places and election officers of the two elections be the same; that the Registrar of Voters canvas the returns of the General Municipal Election; and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido , California as follows:

1. That the above recitations are true.

2. That pursuant to the requirements of the laws of the State of California there shall be and there is hereby called and ordered to be held in the City of Escondido, California, on Tuesday, November 8, 2022, a General Municipal Election for the purpose of submitting the following proposed ordinance , to authorize the city council to determine the city treasu rer’s compensation and to standardize vacancy procedures for all City of Escondido elected officials , to the qualified electors of the City of Escondido.

3. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election on November 8, 2022, the following question:

Shall the Office of the city treasurer be appointive?
Yes
No

4. That the text of the Ordinance submitted to the voters is attached as Exhibit “A” and incorporated into this resolution by this reference.

6. Pursuant to California Elections Code section 9282, the City Council hereby acknowledges its authority, and the authority of any individual voter who is eligible to vote on the 263
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measure, or bona fide association of citizens, or any combination of voters and associations, to submit a written argument, not to exceed 300 words, for or against the measure. Arguments must be submitted to the City Clerk, and may be changed until and including the date fixed by the City Clerk, after which no arguments for or against the measure may be submitted, withdrawn or changed.

7. Pursuant to California Elections Code section 9285, rebuttal arguments will be allowed. The rebuttal arguments may not exceed 250 words. Rebuttal arguments must be submitted to the City Clerk, and may be changed until and including the date fixed by the City Clerk, after which no rebuttal arguments for or against the measure may be submitted to the City Clerk. This Section 7 is applicable only to the Novembe r 8, 2022 election called by this resolution and after that election, shall expire.

8. Pursuant to California Elections Code section 9280, the City Clerk is directed to transmit a copy of the measure to the City Attorney. The City Attorney is directed to p repare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk by the date fixed by the City Clerk.

10. The Board of Supervisors of the County of San Diego is hereby requested to consolidate this election with the statewide election to be held on the same day, in the same territory. Pur suant 264
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to California Elections Code section 10411 and section 10418: (a) the election shall be held in all respects as if there were only one election; (b) only one form of ballot shall be used; and (c) the Registrar of Voters of the County of San Diego shall canvass the returns of the subject election as part of the canvass of the returns of the election consolidated hereby.

11. Pursuant to California Elections Code sections 10410 and 10418, within the territories affected by this consolidation, the elect ions precincts, polling places, voting booths and poling hours shall, in every case, be the same, and there shall be only one set of election officers in each of the precincts.

13. That the ballots to be used at the election shall be, both as to form and matter contained in form and content as required by law.

14. City requests Measure titled as Measure G.

15. That the vote requirement for the measure to pass is a majority (50%+1) of the votes cast.

17. The City Council finds that this Resolution is not subject to the Calif ornia Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in 265
Item12.
a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15 378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

18. That in all particulars not otherwise recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

ORDINANCE NO. 2022-17

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, REPEALING ESCONDIDO
MUNICIPAL CODE CHAPTER 2 - ADMINISTRATION,
ARTICLE 4B – CITY TREASURER, AND AMENDING THE

ESCONDIDO MUNICIPAL CODE TO AUTHORIZE THE CITY

MANAGER TO APPOINT THE CITY TREASURER
WHEREAS, in a Community Opinion Survey Summary Report prepared for the City of Escondido (“City”) and published on December 31, 2021, found that “After receiving background information about the City Treasurer position, most respondents (55%) agreed that the City should eliminate the City Treasurer position. They shouldn't pay a person $135,000 a year to do a job they may not be qualified to do, and for which the City is outsourcing the work anyway.” and WHEREAS, a voter initiative passed in 1984 (Proposition F), and modified in 1986 (Proposition N), has tied the City Treasurer’s compensation to that of the highest paid City department head and could result in the City paying $500,000 for a special election to fill a City Treasurer vacancy; and WHEREAS, the voters did not place any specific education, training, or experience requirements for a City Treasurer; and
WHEREAS, since the voters enacted the Propositions F and N, only the voters can modify the City Treasurer’s compensation and vacancy procedures; and
WHEREAS, California Government Code section 36508 authorizes the city council to submit to the electors the question whether the City Treasurer shall be appointed by the city council; and WHEREAS, California Government Code section 36509 requires the question to be printed on a ballot to appoint a City Treasurer shall substantially be in the following form, “Shall the office of city treasurer be appointive?”; and
WHEREAS, California Government Code section 36510 authorizes, if approved by a majority of votes cast, the City Council shall appoint the City Treasurer at the expiration of the term of the officers Resolution No. 2022-108
Exhibit "A"

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NOW, THEREFORE, subject to approval by an affirmative, simple majority vote of the people as required by law, THE PEOPLE OF THE CITY OF ESCONDIDO, CALIFORNIA, DO ORDAIN AS FOLLOWS:

SECTION 1. The Escondido Municipal Code is revised to repeal Chapter 2 - Administration, Article 4B - City Treasurer.

Resolution No. 2022-108
Exhibit "A"

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The city manager shall have the power to exercise control over all departments of the city and over all appointive officers and employees thereof, except the city attorney and their employees.

SECTION 3. The Escondido Municipal Code Chapter 10 – Finance, Article 2 – Director of Finance, Section 10-15, Relation to other offices, is repealed and replaced as follows:

City treasurer.

The director of finance shall be also be the city treasurer and shall have and exercise all of the powers, duties, and responsibilities of the office as described in state and local laws.

Resolution No. 2022-108
Exhibit "A"

Page 3 of 4 ends

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SECTION 6. This Ordinance shall take effect immediately, upon approval by a simple majority of the voters, voting on the question at the November 8, 2022 election.

Resolution No. 2022-108
Exhibit "A"

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KEY-

CONSENT CALENDAR CURRENT BUSINESS

PUBLIC HEARING WORKSHOP
8/10/2022
PRESENTATION - Clean Energy Alliance Update
CONSENT CALENDAR - (J. PROCOPIO) - SANDAG SMART GROWTH INCENTIVE PROGRAM GRANT AGREEMENT - Request the City Council City Council authorize the City Manager or their designee to execute the Smart Growth Inceptive Program Grant (SGIP) Agreement CONSENT CALENDAR-(R. VOGT) - FIREHOUSE SUBS PUBLIC SAFETY FOUNDATION GRANT AWARD - It is requested that the City Council accept a Firehouse Subs Public Safety Foundation Grant Award in the amount of $16,147.42 to purchase two Bullard QXT Thermal Imaging Cameras.

CONSENT CALENDAR - (D. SHULTZ) - TREASURER'S INVESTMENT REPORT FOR THE QUARTER ENDED JUNE 30, 2022 - Request the City Council receive and file the Quarterly Investment Report for the quarter ended June 30, 2022 PUBLIC HEARING - (H. NELSON) Carefree Ranch Mobile Home Short-Form Application CURRENT BUSINESS - (J. PROCOPIO) - ADOPTION ORDINANCE 2022-10 - UPDATES TO CALIFORNIA VEHICLE CODE SECTION 22358.8 TO RETAIN EXISITING SPEED LIMITS ON CERTAIN STREET SEGMENTS (first reading and introduction) 8/17/2022
CURRENT BUSINESS - (P. MCNAMARA, M.MORASCO) - REVIEW OF CALIFORNIA CENTER FOR THE ARTS MANAGEMENT AGREEMENT

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Escondido City CouncilJuly 27, 2022

Escondido City Council
July 27, 2022