Agenda Item No. 6
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: March 10, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Assistant City Manager
Robert Lomeli, City Attorney
SUBJECT: Advisory Body Review
RECOMMENDATION
Receive a report on the City’s advisory bodies including the selection process, composition of the Citizen Oversight Committee, and bylaws and meeting procedures and provide direction to staff.
BACKGROUND
It is best practice for cities to periodically review their advisory bodies including how members are selected and how the bodies operate. The City has three advisory bodies established by the City Council: Planning Commission, Parks, Recreation and Beautification Commission, and Citizen Oversight Committee for City Revenue Measures. The Planning Commission is authorized to approve permits for land use applications and review and make policy recommendations to the Council related to the City’s General Plan. The Parks, Recreation and Beautification Commission provides recommendations to the Council on issues involving parks, recreation, City-sponsored special events and beautification efforts. The Citizen Oversight Committee reviews the City’s annual reporting on Measures X-06 and F-20 sales tax measures and Measure K-14 revenues and expenditures.
Each of these bodies is comprised of five members who are appointed by the Mayor with the Council’s approval. Attachment 1 provides information on these respective selection processes through Grover Beach Municipal Code (GBMC) Title III, Chapter 31, §§31.02, 31.08, 31.20, and
31.23; and Resolutions 19-44 and 20-27. In practice, the City accepts applications from interested residents when there is a vacancy and the Mayor convenes an interview panel which generally includes an existing member of the advisory body and a Council Member along with the staff liaison to advisory body as an ex-officio member. The panel provides input to the Mayor on the top candidate(s) for the vacant seat(s) and the Mayor’s selection(s) is then taken to the City Council for approval at the next regular City Council meeting.
Advisory Body Selection Process
In reviewing selection practices of other cities in the county, staff has determined that there are different ways in which cities appoint members of advisory bodies. The City’s current practice of having the Mayor select members with approval of the Council is unique in this county. Three of the cities have the full Council interview and select advisory body members in open session, with some holding special meetings for this purpose. San Luis Obispo uses a subcommittee of two Council Members to make recommendations for the full Council’s approval during an annual appointment period. Arroyo Grande allows each Council Member to select a member of each Staff Report: Advisory Body Review Page 2
March 10, 2025
advisory body while Atascadero uses different approaches depending on the advisory body. The chart below illustrates the various approaches within the county:
City Boards Appointment Process
Arroyo Grande PC/PR Each CouncilMember selects one member Atascadero PC
Each CouncilMember selects one member; 2 by majority vote of the Council
Atascadero CO
7 members selected by designated community groups; 2 by majority vote of the Council
Grover Beach PC/PR/CO Appointed by the Mayor with approval by City Council Morro Bay PC/PR/CO Full Council interviews and appoints in open special meeting Paso Robles PC/PR/CO Full Council interviews and appoints in open special meeting Pismo Beach PC/PR/CO Full Council interviews and appoints in open special meeting San Luis Obispo PC/PR/CO
Council subcommittee recommends for full Council approval once per year
• PC = Planning Commission; PR = Parks Commission or similar body; CO = Citizen’s Oversight or other tax measure oversight body
Staff is requesting direction from the Council on whether to maintain the current selection process, as outlined in the Municipal Code or to return to the Council with an ordinance to amend the code to apply a different process.
Citizen Oversight Committee for City Revenue Measures Composition The City has established several revenue measures over the years that require citizen oversight.
In 2006, Grover Beach voters approved Measure X-06 (Ordinance No. 06-12), which established a 0.5% Transaction and Use Tax. Section 15014 of this ordinance requires the City Council to “appoint a citizen committee to review the annual report, and who will provide a report on expenditures of the revenues generated from the Transaction and Use Tax to the City Council.” In 2020, Grover Beach voters also approved Measure F-20 (Ordinance No. 20-10), which amended the Transaction and Use Tax rate. This measure maintained the oversight provisions of the original Transaction and Use Tax ordinance following approval of Measure X-06.
In addition, in 2014 Grover Beach voters approved Measure K-14 (Ordinance No. 14-05), which authorized the issuance of up to $48 million in general obligation bonds for street improvements.
Section 10(c) of this ordinance specifically requires that “A Citizen Oversight Committee composed of three voters of the City of Grover Beach shall be formed and will be charged with an annual review of all Bond proceeds expenditures and an annual report to the City Council regarding their findings as to those expenditures.”
The City formed the required oversight committees though having two separate committees proved to be challenging to coordinate and find residents to serve in these roles. To streamline the oversight process while fulfilling the requirements of the measures, the City Council on August 19, 2019 adopted Resolution No. 19-44, which established a consolidated “Citizen Oversight Committee for City Revenue Measures” that would provide oversight for all approved revenue measures. This resolution specified that this consolidated committee would consist of the three members currently serving on the Measure K-14 Oversight Committee, with vacancies to be filled through the City’s standard process for advisory commissions.
Staff Report: Advisory Body Review Page 3
March 10, 2025
Following the approval of Measure F-20 in November 2020, the City Council adopted Resolution No. 20-47 in December 2020, which expanded the Citizen Oversight Committee from three to five members to increase public input and community participation in the oversight process for the City’s revenue measures. While this expansion allowed for broader community involvement, it created a discrepancy with the specific requirements outlined in Ordinance No. 14-05 for Measure K-14, which explicitly calls for a three-member oversight committee.
Ordinance No. 14-05 regarding Measure K-14 outlines specific parameters for the committee structure. Upon further review of the language of this ordinance, staff recommends returning to a three-member committee structure to align with the original framework established in the Measure K-14 ordinance, and to allow for combined committee oversight. This approach would provide consistency with the provisions outlined in the voter-approved measure while maintaining efficient oversight of all revenue measures. While the expansion to five members was done to provide additional community input, maintaining the three-member structure ensures strict adherence to the provisions of Ordinance No. 14-05. Staff further recommends reverting to the Citizen Oversight Committee as the three-member body established in Resolution No. 19-44 for this oversight role, which aligns with the provisions in Ordinance No. 14-05 for Measure K-14 oversight.
In practice, the Citizen Oversight Committee would continue the current practice of meeting annually to review the annual report of Measure K-14 bond proceeds and expenditures, Measure X-06/F-20 Transaction and Use Tax revenues and expenditures, and any other voter-approved revenue measures that require oversight. These reviews would be conducted as separate agendized items in a consolidated meeting, resulting in a single comprehensive report to the City Council regarding the committee’s findings on all revenue measures. This approach would ensure full compliance with all ordinance requirements while maximizing administrative efficiency.
Advisory Body Bylaws and Meeting Procedures
The topic of advisory body bylaws and meeting procedures has recently been raised particularly regarding the Citizens Oversight Committee. While establishing bylaws for advisory bodies would typically serve a beneficial purpose for clarifying operational procedures, applicable law limits the Council’s authority to modify voter-approved initiatives which specify the formation of related advisory bodies. According to California Elections Code §9217, if an initiative is adopted by the voters, it can be repealed or amended only by the voters, unless the original language provides otherwise. Case law supports this limitation, as demonstrated in Mobilepark West Homeowners Assn. v. Escondido Mobilepark West (1995) 35 Cal.App.4th 32, where a city council-adopted ordinance purporting to clarify and implement an existing initiative was declared invalid. This legal precedent indicates that the City Council cannot unilaterally expand upon or modify the provisions of Ordinance No. 14-05 without submitting such changes to the voters for approval.
To address this governance interest, cities generally include specific language in tax measure or bond ordinances that authorizes the council to establish bylaws or administrative procedures for oversight committees without requiring subsequent voter approval. Such provisions often include phrases like “The City Council may adopt bylaws, rules, or procedures to govern the operations of the Committee consistent with this Ordinance” or “The City Council shall establish the Committee’s operational procedures by resolution.” When crafting future ballot measures that include advisory oversight committees, the City Council may wish to include such enabling language to maintain appropriate flexibility in administrative oversight while respecting voter authority over substantive provisions.
Lacking such language in the existing ordinance, however, the City is bound by the specific terms approved by the voters. As it pertains to existing language regarding the creation, formation, Staff Report: Advisory Body Review Page 4
March 10, 2025
appointment and specifics of process pertaining to the Citizen Oversight Committee, it is recommended that Council not implement any processes or procedures other than those required to create the committee and honor the number of members specified and to allow for an annual review of applicable expenditures (i.e., utilize the City’s process to appoint a three person committee that is charged with reviewing applicable expenditures).
Lastly, staff would note that development of a handbook for conducting Council and advisory body meetings for the Council’s review is a work program item this year which may also address Council and community interests in how these meetings operate. This handbook would specify greater consistency in advisory body meetings with regards to use of microphones at and recording of all meetings. Staff will implement this consistency of microphone use and meeting recording for advisory bodies at this time given Council’s expressed interest in this approach.
FISCAL IMPACT
There are no fiscal impacts associated with the requested direction.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Receive a report on the City’s advisory bodies including the selection process, composition of the Citizen Oversight Committee, and bylaws and meeting procedures and provide direction to staff; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. The City’s advisory body members have received a copy of this report.
Attachments
1. Advisory Body Code Sections and Resolutions
!!
""
#$%&$'() #$%&*+,-(. #$%&#/-.0(,,1 #$%&23145)(,1 #$%&67(1)8) #$%&9:4. #$%&;<=>.. #$%&?/>>,@A)). BC"DEFGBFH
D
IJFKH
L
GH
!!
""
#$%*&'() #$%*$M4)50).0',,..(. #$%**N(,.@A)). #$%*#/>>,. #$%*27(1)8) #$%*6O(P4( #$%*9/-.0(,,1. #$%*;:4.Q(.>.-5. RSTUUVUWXYZZV[[VYU \]^_`^abcdefgh_ /O5)1',,..0(ij.i(-j()P% kO(('PQl*2&&mk7(P%*n/Q>)..P*n#n$o9&m \]^_`pqcqrcbs_ )PO5)1',,...i)55..00A,,-(.ti.i)55-u4)50P5(.0ijQ )Pti.i)55-)>>P0((,.004(j)(.Q(0(.4i5..((,).,)j-.>0Pi )>>,% kO(('PQl*2&$mk7(P%*n/Q>)..P*n#n$o9&m \]^_`]drschacvbgqqccefhw_ Attachment 1
!"
#
!"$
%
&
&$&'()"
*+,-./01234506117892-
!"!%
&
&$&'()"
*+,-.:;02598<578;9-
=
> &
?
#=
@
!"A%
&
&$&'()"
*+,-.BC3781D-
E
!")%
&
&$&'()"
*+,-.F1GH19D1D-
E
I
!"J%
&
&$&'()"
*+,-.K5HH;8976197LM5N59N81D-
I
I
I
E
I
I
&
O
O
!"(%
(!&J
(&)&'((!P%
(J&$
$&'J&'((J
!"#$#%&'$#()#*(+($,&-.#'$#()%/0-(0*1#(2)%3%'()%/04/55%&&%/0'/56/&#*/33%7#5#58#$&9 :+$%/$4/*#-;<=>>?:@$*9AB>-6(&&#*CCD@$*9BECAA-6(&&#*A>C<=CAFBED@$*9F<C<-6(&&#*=CGC AFF<D@$*9FHCF-6(&&#*AAC<CAFFHD@$*9>=C><-6(&&#*<CBC<>>=D@$*9>BC>B-6(&&#*HC<>C<>>B? IJ
K
L
M L NN
MM
M
!"#$#O2P($5#58#$&/3)"#4/55%&&%/0&"(PP8#Q2(P%3%#*#P#')/$&/3)"#'%)R(0*&"(PP&#$7# S%)"/2)'/56#0&()%/09!"#5#58#$&/3)"#4/55%&&%/0&"(PP"/P*0//)"#$628P%'/33%'#%0)"#'%)R9 :+$%/$4/*#-;<=>A?:@$*9A>B-6(&&#*HCGCAFEFD@$*9BECAA-6(&&#*A>C<=CAFBED@$*9F<C<-6(&&#* =CGCAFF<D@$*9>=C><-6(&&#*<CBC<>>=?
NMTU
M
V#58#$&/3)"#4/55%&&%/0&"(PP&#$7#3/$(6#$%/*/33/2$R#($&9W('(0'%#&%0)"#4/55%&&%/0 /''2$$%0O/)"#$S%&#)"(08R#X6%$()%/0/3)#$5&"(PP8#3%PP#*%0(5(00#$"#$#%0(3)#$&#)3/$)"3/$ (66/%0)5#0)&9YPP5#58#$&&"(PP&#$7#())"#6P#(&2$#/3)"#4%)R4/20'%P9 :+$%/$4/*#-;<=><?:@$*9A>B-6(&&#*HCGCAFEFD@$*9F<C<-6(&&#*=CGCAFF<D@$*9FHCF-6(&&#*AAC <CAFFHD@$*9><C>A-6(&&#*<CAFC<>><D@$*9>=C><-6(&&#*<CBC<>>=?
ZZ
N
M
[0)"##7#0)(0(66/%0)5#0))/3%PP(7('(0'R*/#&0/)/''2$20)%P(3)#$)"##X6%$()%/0/3()#$5-)"# %0'258#0)&"(PP&#$7#/0)"#4/55%&&%/020)%P$#(66/%0)#*/$$#6P('#*9[37('(0'%#&/''2$/)"#$S%&# )"(08R#X6%$()%/0/3)#$5-)"#7('(0'R&"(PP8#3%PP#*8R(66/%0)5#0)3/$)"#20#X6%$#*6/$)%/0/3)"# )#$59\"/2P*)"#20#X6%$#*)#$58#3/$(6#$%/*/3P#&&)"(0/0#R#($-)"#4%)R4/20'%P5(R(66/%0)( 5#58#$)/&#$7#3/$)"#20#X6%$#*)#$56P2&(32PP3/2$CR#($)#$59V#58#$&&"(PP8#(66/%0)#*8R)"# V(R/$S%)")"#(66$/7(P/3)"#4%)R4/20'%P9
:+$%/$4/*#-;<=>]?:@$*9A>B-6(&&#*HCGCAFEFD@$*9F<C<-6(&&#*=CGCAFF<D@$*9FGCB-6(&&#*FCEC AFFGD@$*9FBC]-6(&&#*]CABCAFFBD@$*9>=C><-6(&&#*<CBC<>>=? ^ _
`
:Y?Y)%)&3%$&)$#O2P($5##)%0O3/PP/S%0Oa#8$2($R/3#('"R#($-)"#5#58#$&/3)"#4/55%&&%/0 &"(PP#P#')(4"(%$6#$&/0(0*(W%'#4"(%$6#$&/0-S"/&"(PP"/P*/33%'#3/$/0#R#($9 :1?!"#4"(%$6#$&/0&"(PP6$#&%*#/7#$5##)%0O&-(66/%0)(66$/6$%()#'/55%))##&-&%O0$#&/P2)%/0&- *%$#'))"#(33(%$&-(0*#&)(8P%&")"#5##)%0O(O#0*(/3)"#4/55%&&%/09 :4?[0)"#(8�'#/3)"#4"(%$6#$&/0-)"#*2)%#&/3)"%&/33%'#&"(PP8#6#$3/$5#*8R)"#W%'# 4"(%$6#$&/09
:+$%/$4/*#-;<=>G?:@$*9A>B-6(&&#*HCGCAFEFD@$*9F<C<-6(&&#*=CGCAFF<D@$*9>=C><-6(&&#*<C BC<>>=?
bZ cJ
!"#4/55%&&%/0&"(PP(*/6)$2P#&(0*$#O2P()%/0&)/O/7#$06$/'#*2$#(0*&"(PP&#)()%5#3/$ $#O2P($5##)%0O&S"%'"S%PP8#"#P*()P#(&)/0'#/0(8%C5/0)"PR8(&%&9
!"#$%&'()'*+,--''./(0&!
112 34 56 62 5678 43 497: 6 73; 5: 6 73;33<4= 3<
>7897:34 :=578 663
437797 78 :=937< ;3735948
2 376 62
?@8 738==2 43 :47 97674==<3 =4 6 378==2 37 3 4434 >78
57 78 6 62 A7843 497: 2 34 55782 34 >783 4= 3<
!"BCD./'&E+'&F,(&/%/G/./'&!
@8 97 3 32=7 578 H
I 4 73
3? 9754736638==2 7J
114733:<447<778 7<934=3==677 733;7H392=4 4 73
374 7 >7878 ;: 36 37=; 34 34:4;9378 :34 6 37 593H3 4 73=333;3;663;
?K69=7 =4 3 4 73 :4 5:=2<78 7<934=
I 466 3778 7<934=78 : =6 375 4 73 H
54=7
;6
36: 4 73 :4
LI 466 3778 7<934=78 73573434 33;H3 4 73 466937< : 3732 9754733 477;3M73 33 =
354=7
H
637 334
;6
35334=97
N1734373; 4 73 :4 >7878 ;65;: 36 37=; 34 3 :=937<;3M73
3732 97547347:7 578 9 5 349;3; 37=2 975473 557
K1: 78 H3I 4 73O3; 378 73578 339=H637 334
H6: 6 373 4 7329; 7
3=3;3; H3 4 7354=7 6: 6 37
3
PQ=92=48 3;36 73;7439473: 7;7339: <578 9 5 493;54737434 33;3<677 =7 378 473
RESOLUTION NO. 19-44
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, ESTABLISHING A CITIZEN OVERSIGHT COMMITTEE FOR CITY
REVENUE MEASURES
WHEREAS, in 2006, Grover Beach voters approved Measure X-06 which establish a new
0.5% Transaction and Use Tax as a general revenue to fund City services and projects as determined by the City Council; and
WHEREAS, Section 15013 of Ordinance No. 06-12, currently numbered as 101513 in the Grover Beach Municipal Code, calls for preparation and public availability of an annual report to summarize expenditures from revenue generated from the Transactions and Use Tax while Section 15014, currently numbered as 101514, calls for appointment of a citizen committee to review this annual report and prepare a report on these expenditures to the City Council; and WHEREAS, in 2014, Grover Beach voters approved Measure K-14 which authorized issuance of up to $48 million in general obligation bond funding to repair local streets and roads; and
WHEREAS, Section 10(c) of Ordinance No. 14-05 calls for establishment of a Citizen Oversight Committee composed of three voters charged with an annual review of all bond proceeds and expenditure and an annual report to the City Council; and WHEREAS, the Measure X-06 Oversight Committee has not met since 2016 whereas the Measure K-14 Oversight Committee has met annually since its establishment in 2016; and WHEREAS, the City Council affirms the importance of providing a citizen oversight role for approved revenue measures including Measure X-06 along with Measure K-14 and other recent measures which includes reviewing an annual report of the revenues generated from these measures and related expenditures; and
WHEREAS, the City Council hereby establishes a "Citizen Oversight Committee" that would reframe the existing Measure K-14 Oversight Committee into a broader committee that would provide oversight _into Measure K-14, Measure X-06, and other approved revenue measures; and
WHEREAS, the Citizen Ove.rsight Committee would be a three-member body comprised of the three members from the community who are currently members of the Measure K-14 Oversight Committee with committee vacancies to be filled by the City's process in filling vacancies on advisory commissions; and
WHEREAS, staff would work with the Committee to set up the initial meeting in fall 2019 to review a draft annual report of the revenue measures before the Council is asked to adopt this report by the end of calendar year 2019 with a similar schedule anticipated in subsequent years; and
Resolution No. 19-44 Page 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach does hereby establish a Citizen Oversight Committee for City revenues measures.
On motion by Council Member Bright, second by Council Member Lance, and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Council Members: - Bright, Lance, Nicolls, Mayor Pro Tern Shah, and Mayor Lee
Council Members: - None
CouncilMembera:-None
Council Members: - None
the foregoing Resolution was PASSED, APPROVED, AND ADOPTED at the Regular Meeting of the City Council of the City of Grover Beach, California, this 1,9th day of August 2019. ,. ~
, WENDL,SIMS, ~ITY :-CLERK
. - -,
RESOLUTION NO. 20-47
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, INCORPORATING CITIZEN OVERSIGHT OF MEASURE F-20 TO THE EXISTING "CITIZEN OVERSIGHT COMMITTEE FOR CITY REVENUE MEASURES" AND EXPANDING THE COMMITTEE COMPOSITION TO FIVE
POSITIONS
WHEREAS, in 2006, Grover Beach voters approved Measure X-06 which established a new 0.5% Transaction and Use Tax as a general revenue to fund City services and projects as determined by the City Council; and
WHEREAS, Section 15013 of Ordinance No. 06-12, currently numbered as 101513 in the Grover Beach Municipal Code, calls for preparation and public availability of an annual report to summarize expenditures from revenue generated from the Transactions and Use Tax while Section 15014, currently numbered as 101514, calls for appointment of a citizen committee to review this annual report and prepare a report on these expenditures to the City Council; and WHEREAS, in 2014, Grover Beach voters approved Measure K-14 which authorized issuance of up to $48 million in general obligation bond funding to repair local streets and roads and Section 10(c) of Ordinance No. 14-05 called for establishment of a Citizen Oversight Committee composed of three voters charged with an annual review of all bond proceeds and expenditure and an annual report to the City Council; and WHEREAS, the City Council in 2019 affirmed the importance of providing a citizen oversight role for approved revenue measures and established a broader "Citizen Oversight Committee for City Revenue Measures" that would provide oversight into Measure K14, Measure X-06, and other approved revenue measures; and WHEREAS, this broader Citizen Oversight Committee was kept at a three-member body comprised of the three members from the community who were currently members of the Measure K-14 Oversight Committee with committee vacancies to be filled by the City's process in filling vacancies on advisory commissions; and
WHEREAS, the City Council placed Measure F-20 for the 2020 ballot to add a 1 % Transactions and Use Tax to address community needs in addition to the previously approved
0.5% Transactions and Use Tax in Measure X-06; and
WHEREAS, the City Council provided policy direction to incorporate oversight of this measure if passed to the existing Citizen Oversight Committee and to expand the composition of the committee from three positions to five positions; and WHEREAS, Measure F-20 was approved by Grover Beach voters on November 3, 2020 with its related ordinance adopted by the Council on December 7, 2020; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach does hereby incorporate the citizen oversight of Measure F-20 to the Citizen Oversight Committee for City Revenues Measures and expand the committee composition from three positions to five positions ~nd fill the positions using the City's process in filling vacancies on advisory commissions; and
'
L
Resolution No. 20-47 Page2
On motion by Council Member Lance, seconded by Mayor Pro Tern Bright, and on the following roll-call vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Council Members - Lance, Shah, Mayor Pro Tern Bright and Mayor Lee Council Members - None
Council Members - None
Council Members - None
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a Regular meeting of the City Council of the City of Grover Beach, California this 7th day of December 2020. ~A DEST: . . '•
{0~'.~~
WENDl"SIM~,CfTY GLERK .,,,. ... -.
. . - -- :
)
ORDINANCE NO. 06-12
AN ORDINANCE OF THE CITY OF GROVER BEACH ADDING CHAPTER 15
TO ARTICLE X OF THE GROVER BEACH MUNICIPAL CODE ESTABLISHING
A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE
BOARD OF EQUALIZATION
BE IT ORDAINED BY THE VOTERS OF THE CITY OF GROVER BEACH, AS FOLLOWS:
SECTION 1. FINDINGS.
A. One of the primary roles of City government is to provide vital public services such as public safety, street and sidewalk maintenance, parks and recreation programs, and many other essential city services.
B. The State continues to take revenues away from local governments. Over the past ten years, the State has taken over three million dollars in Grover Beach local city funds. As a result, the City needs additional resources for vital public services, such as public safety and road repair.
C. Grover Beach has been forced to use reserve funds to cover budget shortfalls. City reserve funds are limited and without new revenue it is likely that in the future important services, such as pothole repair, public safety or recreational programs, will be cut.
D. Last year, more than ten thousand calls were placed to the City's emergency dispatch center related to police, fire or medical emergencies -- and many of these calls come from Grover Beach's most vulnerable population, seniors.
E. In addition, it is estimated that 30 million dollars is needed to repair Grover Beach's local infrastructure. Main city streets and roads covered with potholes and many city streets have not been paved for 20 years.
F. Without additional money to support local police officers and maintain our full-time Grover Beach Fire Department or maintain recreation programs and facilities for seniors and youth, our City will not be able to offer the kind of public safety services we need, deserve and count on.
SECTION 2. AMENDMENT OF CODE.
Grover Beach Municipal Code Article X is hereby amended to add Chapter 15 to read as follows:
CHAPTER 15. TRANSACTIONS AND USE TAX.
15000. TITLE.
This Ordinance shall be known as the "Transactions and Use Tax Ordinance of the City of Grover Beach". The City of Grover Beach hereinafter shall be called "City." This Ordinance shall be applicable in the incorporated territory of the City. ,
Ordinance No. 06-12 - Tran~..Jtions and Use Tax
15001. PURPOSE.
This Ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
15001.1. To impose a retail transactions 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 operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. 15001.2. To adopt a retail transactions and use tax Ordinance that incorporates provisions identical to those of the Sales 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.
15001.3. To adopt a retail transactions and use tax Ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes.
15001.4. To adopt a retail transactions 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 this Ordinance. 15002. OPERATIVE DATE.
"Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this Ordinance, the date of such adoption being as set forth below.
15003. CONTRACT WITH STATE.
Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax Ordinance; provided, that if the City shall not have contracted with the State Board of Equalization 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 execution of such a contract.
15004. TRANSACTIONS TAX RATE.
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-half percent (0,5%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City on and after the operative date of this Ordinance, Ordinance No. 06-12 - Tran8aJlions and Use Tax
15005. PLACE OF SALE.
For the purposes of this Ordinance, 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 State Board of Equalization.
15006. USE TAX RATE.
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 this Ordinance for storage, use or other consumption in said territory at the rate of one-half percent (0.5%) 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.
15007. ADOPTION OF PROVISIONS OF STATE LAW.
Except as otherwise provided in this Ordinance 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 (commencing with Section 6001) of Division 2 of the, Revenue and Taxation Code are hereby adopted and made a part of this Ordinance as though fully set forth herein. 15008. 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:
15008.1. 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:
A. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California;
B. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance.
C. 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:
D. 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; Ordinance No. 06-12 - Tram,Jtions and Use Tax
E. 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.
F. In Sections 6701,6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 qr 6828 of the Revenue and Taxation Code.
15008.2. 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.
15009. 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 Ordinance. 15010. EXEMPTIONS AND EXCLUSIONS.
15010.1. 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. 15010.2. There are exempted from the computation of the amount of transactions tax the gross receipts from: .
A. 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.
B. 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 such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
i. With respect to vehicles (other than commercial 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, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City 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
ii. 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.
Ordinance No. 06·12 - Trans)tiOns and Use Tax
)
C. 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 this Ordinance.
D. 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 this Ordinance.
E. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of 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. 15010.3. There are exempted from the use tax imposed by this Ordinance, the storage, use or other consumption in this City of tangible personal property:
A. The gross receipts from the sale of which have been subject to a transactions tax under any state·administered transactions and use tax Ordinance.
B. 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 public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
C. 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 this Ordinance.
D. If the possession of, or the exercise of any right or power 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 this Ordinance.
E. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of 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.
F. Except as provided in subparagraph (7), a retailer engaged in busine.ss 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.
Ordinance No. 06-12 - Tran~.,Jtions and Use Tax
G. "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 any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. 15010.4. 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 consumption of which is subject to the use tax.
15011. AMENDMENTS.
All amendments subsequent to the effective date of this Ordinance 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 Ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Ordinance. 15012. 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 Ordinance, 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. 15013. ANNUAL REPORT.
City shall prepare and make available to the public an annual report, which presents in summary form expenditures from the prior fiscal year from revenue generated from the Transactions and Use Tax and budgeted expenditures for the upcoming fiscal year. 15014. PERIODIC REVIEW.
The City Council shall appoint a citizen committee to review the annual report, and who will provide a report on expenditures of the revenues generated from the Transaction and Use Tax to the City Council.
SECTION 3. USE OF TAX PROCEEDS.
All proceeds of the tax levied and imposed hereunder shall be accounted for and paid into the City of Grover Beach General Fund, and may be used for any lawful purpose as designated by the City Council.
SECTION 4. SEVERABILITY.
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
SECTION.5. STATUTORY AUTHORITY FOR TAX.
This Ordinance is adopted pursuant to Revenue and Taxation Code Section 7285.9.
Ordinance No. 06-12 - Tranl>",dtions and Use Tax
SECTION 6. ELECTION REQUIRED.
This Ordinance shall not become operative unless and until a majority of the electors voting on this measure vote to approve the imposition of the tax at the General Municipal Election to be held on Tuesday, November 7, 2006.
SECTION 7. EFFECTIVE DATE.
If this Ordinance is approved by a majority of the electors voting on the issue at the November 7, 2006 General Municipal Election, pursuant to Elections Code Section 9217, the Ordinance (not the tax) shall be become effective ten (10) days after the City Council accepts the certified results of the election.
INTRODUCED at a regular meeting of the City Council held Tuesday, September 5, 2006 and ADOPTED by the City Council on Monday, September 18,2006 on the following roll call vote, to wit:
AYES: Council Members Ekbom, Shoals, Mayor Pro Tem Lieberman, and Mayor Versaw.
NOES:
ABSENT:
ABSTAIN:
Council Member Ashton.
Council Members - None.
Council Members - None.
PASSED, APPROVED, and ADOPTED by 55.72 percent of the Voters of the City of Grover Beach on Tuesday, November 7, 2006.
LARRY
[£CQ~ VERSAW, MAYOR
ATTEST: I , '
~al #-~I:l. ~
APPROVED AS TO FQ~(M: , }
)
ORDINANCE NO. 14-05
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, ORDERING THE SUBMISSION OF A GENERAL OBLIGATION
BOND PROPOSITION TO THE QUALIFIED VOTERS OF THE CITY OF GROVER
BEACH AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON
NOVEMBER 4, 2014, FOR THE PURPOSE OF THE ACQUISITION,
CONSTRUCTION, AND REHABILITATION OF LOCAL STREET IMPROVEMENTS
THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA (THE "CITY"), DOES ORDAIN AS FOLLOWS:
WHEREAS, under the direction of the City Council, staff has retained a civil engineering consultant with expertise in pavement management that evaluated the current condition of City streets; and
WHEREAS, the average condition of the approximately 44.96 centerline miles of streets in the City was rated at 42 on a scale of 0-100, which indicates a "poor" condition of streets citywide; and
WHEREAS, over 65% of the City's street system has been evaluated to be in "poor" to "failed" condition, the majority of which are attributable to residential streets; and WHEREAS, critical reconstruction and rehabilitation projects are necessary in the City to improve drivability and safety; and, according to the pavement management expert, unless major rehabilitation of the street system is initiated soon, the City street system will reach statistical failure within six (6) to eight (8) years; and WHEREAS, State takeaways of $5,000,000 over the last five years and the recent recession, among other factors, means that the City does not have the dedicated funding it needs to make significant repairs to streets in "poor" or "failed" condition; and WHEREAS, passing a local Grover Beach Street Reconstruction and Safety Improvement Bond will generate local funds that cannot be touched by Sacramento, requiring all funds to be used locally; and
WHEREAS, if City streets are rehabilitated, it will make it easier to drive on our streets, as well as maintain emergency response times, improve safety at neighborhood school crosswalks, and enhance safety for pedestrians, bicyclists, and drivers; and WHEREAS, based on the fact that the City receives its revenue primarily from property taxes, there isn't sufficient funds in the City's $7.5 million budget to provide the basic services the City is required to provide and maintain the extensive street system. It is just not possible to initiate the rehabilitation of the street system which has been estimated to be in excess of $48 million; and
WHEREAS, the City would require that funds from such a measure be deposited directly into a Street Construction Designated Fund; and
Ordinance No. 14-05
WHEREAS, the only source of funds that could be available to pay for the citywide rehabilitation of the street infrastructure is through issuance of General Obligation Bonds; and WHEREAS, on July 7,2014, the City Council adopted, by at least a two-thirds vote of all its members, a resolution entitled "Resolution of the City Council of the City of Grover Beach Determining that the Public Interest and Necessity Demand the Acquisition and Development of Certain Municipal Improvements ("Street Improvements") with Financing Through the Issuance of General Obligation Bonds (the "Resolution of Necessity"); and WHEREAS, in order to provide for the issuance by the City of its general obligation bonds to finance the Street Improvements described in the Resolution of Necessity, it is necessary for the City Council to pass an ordinance ordering the submission of the proposition of incurring bonded indebtedness for such purpose to the qualified voters of the City at a regular municipal election; and
WHEREAS, the City Council desires to submit said ballot measure to the qualified voters of the City at an election to be held in the City on November 4, 2014, and to consolidate the bond election with the general statewide election held within the City on that date; and WHEREAS, the General Municipal Election has been called by Resolution No. 14-41 adopted by City Council on June 16, 2014, and the City Council hereby orders that there be submitted to the qualified voters of the City a proposition on incurring a bonded debt (the "Bonds") for the purpose set forth in the Resolution of Necessity, at that General Municipal Election, which will coincide with the regular statewide election to be held on November 4,2014.
NOW THEREFORE, IT IS ORDERED AS FOLLOWS:
Section 1. That the above recitals are true and correct.
Section 2. Ballot Proposition. The City Council hereby submits to the qualified voters of the City, at the regular election to be held on November 4, 2014, a proposition on issuing the Bonds in substantially the following form:
CITY OF GROVER BEACH
MEASURE K-14
GROVER BEACH STREET REHABILITATION; SAFETY
IMPROVEMENT BOND MEASURE: To rehabilitate/resurface
deteriorating residential and major streets to improve drivability; maintain emergency response times; enhance safety for
pedestrians, bicyclists, drivers, neighborhood school
crosswalks; and promote economic/job growth; shall the City incrementally issue up to $48,000,000 of bonds at tax-exempt interest rates, requiring funds go directly into the Street Construction Designated Fund with all funds used exclusively for Grover Beach streets; subject to independent audits/citizens' oversight committee?
YES
NO
Ordinance No. 14-05
Section 3. Object and Purpose of Bonds. The object and specific single purpose of issuing the Bonds is the acquisition, construction and improvement of street improvements throughout the City (the "Street Improvements"), and the proceeds of the Bonds may only be applied to that purpose.
Section 4. Estimated Cost of Street Improvements. The estimated cost of the Street Improvements is $48,000,000.00. The estimated cost includes legal or other fees, and other costs and expenses, which are incidental to or connected with the authorization, issuance and sale of the Bonds.
Section 5. Principal Amount of Bonds. The amount of the principal of the Bonds shall not exceed $48,000,000.00.
Section 6. Maximum Interest Rate. The maximum rate of interest to be paid on the Bonds shall be 12% per annum.
Section 7. Issuance and Sale of Bonds. The City proposes to acquire, construct and develop the Street Improvements and to issue and sell the Bonds pursuant to Article 1, commencing with Section 43600, of Chapter 4 of Division 4 of Title 4 of the California Government Code, or Article 4.5, commencing with Section 53506, of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, in one or more series, in the maximum amount and for the objects and purposes set forth above if two-thirds of all qualified voters voting on the proposition set forth above vote in favor thereof. The Bonds will be general obligations of the City payable from and secured by taxes levied and collected in the manner prescribed by laws of the State of California. All of the Bonds are to be equally and ratably secured, without priority, by the taxing power of the City.
Section 8. Consolidation; Manner of Conducting Election. The date of the election is November 4, 2014. The election shall be held and conducted, election officers appointed, voting precincts designated, ballots printed, polls opened and closed, ballots counted, and returned, returns canvassed, results declared, and all other proceedings incidental to and connected with the election shall be regulated and done in accordance with the provisions of law regulating the election as specified herein. The City Council has requested, pursuant to Resolution No. 14-42, the Board of Supervisors of San Luis Obispo County (the "County") and the San Luis Obispo County Clerk, Elections Division, the consolidation of the called municipal election with any other election to be held within the City on said date.
Section 9. Procedure for Voting on Proposition. Ballots for the election shall be provided in the form and in the number provided by law. Voters shall be provided an opportunity to vote for or against the proposition on the ballot, in accordance with procedures to be adopted by the authorized officers of the County charged with conducting the election.
Section 10. Accountability Requirements. In accordance with Sections 53410 and 53411 of the California Government Code, the City Council hereby adopts the following accountability requirements relating to the Bonds:
(a) A separate account called Street Construction Designated Fund shall be created and held by the City, into which the proceeds of the Bonds are deposited.
Ordinance No. 14-05
(b) The chief fiscal officer of the City shall file a report with the City Council no later than January 1, 2016, and at least once a year thereafter, showing the amount of Bond proceeds collected and expended, and the status of the project to be financed from the proceeds of the Bonds. (c) A Citizen Oversight Committee composed of three voters of the City of Grover Beach shall be formed and will be charged with an annual review of all Bond proceeds expenditures and an annual report to the City Council regarding their findings as to those expenditures.
Section 11. Publication of Ordinance. This Ordinance shall be published once a day for at least seven (7) days in a newspaper published at least six (6) days a week in the City, or once a week for two (2) weeks in a newspaper published less than six (6) days a week in the City. The first of said publications shall, in either event, be within fifteen (15) days after the adoption of this Ordinance. The Clerk is hereby authorized and directed to make said publications and to transmit for receipt, no later than August 7, 2014, a certified copy of this Ordinance to the appropriate officials of the County responsible for preparing the ballots for said election.
Section 12. Effective Date. This Ordinance shall become effective immediately upon its adoption by two-thirds vote of all the members of this Council.
The foregoing Ordinance was INTRODUCED and READ at a regular meeting of the City Council held on July 7, 2014, and was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council held on July 21, 2014, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
\ ,
Council Members Karen Bright, Glenn Marshall, William "Bill" Nicolls, Mayor Pro Tem Jeff Lee, and Mayor Debbie Peterson.
Council Members - None.
Council Members - None.
Council Members - None.
DEBBIE PETERSON, MAYOR
DO ~L. McMAHON" CITY CLERK
APPROVED AS TO FOR :
ORDINANCE NO. 20-10
AN ORDINANCE OF THE CITY OF GROVER BEACH, CALIFORNIA
AMENDING SECTIONS 101504, 101505 AND 101506 OF CHAPTER 15 TO
ARTICLE X OF THE GROVER BEACH MUNICIPAL CODE AMENDING THE
AMOUNT OF A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY
THE STATE BOARD OF EQUALIZATION
BE IT ORDAINED BY THE VOTERS OF THE CITY OF GROVER BEACH, AS FOLLOWS:
PART 1. FINDINGS.
A. The City of Grover Beach (City) prides itself on stretching its resources to meet community needs despite having one of the smallest General Fund budgets per capita among cities in the county; and
B. The City has made significant strides in providing effective and efficient services and has demonstrated its leadership in considering economic growth opportunities and cost management leading to a relatively stable financial position despite impacts from the COVID-19 pandemic which total $800,000 in decreased revenue or 6% of General Fund revenues; and C. In response to this fiscal challenge, the City has taken numerous actions to ensure the City's financial position including instituting a hiring review before filling vacant positions, tightening expenditures to reduce nonessential costs and freeze travel expenses, and delaying one-time infrastructure improvements and putting other items on hold; and D. Given these actions, the City's fiscal outlook is relatively stable for now and the budget for next year maintains existing service levels and prudent ending reserves in the General Fund to protect the City's finances during these times of economic uncertainties; and E. While the current budget does not have service or staffing reductions, the City's financial projections do not have adequate funding to meet key community needs identified by the public such as major street repairs and sidewalk improvements, business support and assistance, and fire and emergency medical and neighborhood policing services; and F. These community needs include $10 million in unfunded repairs for major streets such as West Grand Avenue, miles of sidewalk infill to make the city more accessible for pedestrians, ongoing funding assistance and support to help businesses be successful in our community and more immediately address the impacts from COVID-19 pandemic, and low public safety staffing levels that do not allow the level of desired proactive community and neighborhood outreach work; and
G. The City currently has a general transactions and use tax (commonly known as a "sales tax") pursuant to the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code (commencing with Section 7251) and Chapter 2.3 of Part 1.7 of Division 2 of the Revenue and Taxation Code (commencing with Section 7285.9), with a rate of one half of one percent (0.5%), as established in Article X, Chapter 15 of the Grover Beach Municipal Code ("Transactions and Use Tax"); and
H. Section 2(b) of Article XIII C of the California Constitution, added by Proposition 218, effective November 1996, requires that a measure proposing a general tax be submitted to the Ordinance No. 20-10- Transactions and Use Tax Page2
voters at an election consolidated with a regularly scheduled general election for members of the governing body of the local government; and
I. A General Municipal Election to be held in the City on Tuesday, November 3, 2020, for the election of certain officers of the City has been called by Resolution of the City Council on July 22, 2020; and
J. A request for consolidating the General Municipal Election with the Statewide General Election on November 3, 2020 has also been called by Resolution of the City Council on July 22, 2020; and
K. Pursuant to California Constitution Article XIII C, Section 2(b) and Elections Code Section 10201, the City has determined by the City Council's action to submit a measure to the voters to enact an ordinance establishing a new one (1 %) percent Transactions and Use Tax (Sales Tax) at the City's next regular consolidated general municipal election; and L. Pursuant to Revenue and Taxation Code section 7285.9, approving the Sales Tax Measure requires approval by a majority vote of the qualified voters of the City voting in an election on the issue; and
M. The proceeds from such a Sales Tax could not be taken by the State and would remain local, to be spent in Grover Beach for services such as infrastructure improvements, business support and assistance, public safety staffing, and other services; and N. The Sales Tax proceeds would have citizen oversight by the existing Citizen Oversight Committee on City Revenue Measures with an annual audit report presented to the City Council.
PART 2. Section 101504 of Chapter 15 of Article X of the Grover Beach Municipal Code is hereby amended as follows:
Section 101504. Transaction Tax Rate. 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 and] one-half percent [(1.5%)] (0.5%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City on and after the operative date of this chapter.
PART 3. Section 101505 of Chapter 15 of Article X of the Grover Beach Municipal Code is hereby amended as follows:
Section 101505. 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 sale are consummated [for the purpose of a transactions tax proposed by this Chapter] shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization.
Ordinance No. 20-10- Transactions and Use Tax Page3
PART 4. Section 101506 of Chapter 15 of Article X of the Grover Beach Municipal Code is hereby amended as follows:
Section 101506. Use Tax Rate. 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 this Chapter for storage, use or other consumption in said territory at the rate of [one and] one-half [(1.5%)] (0.5%) percent 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.
PART 5. USE OF TAX PROCEEDS.
All proceeds of the tax levied and imposed hereunder shall be accounted for and paid into the City of Grover Beach General Fund and may be used for any lawful purpose as designated by the City Council.
PART 6. SEVERABILITY.
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
PART 7. STATUTORY AUTHORITY FOR TAX.
This Ordinance is adopted pursuant to Revenue and Taxation Code Section 7285.9.
PART 8. ELECTION REQUIRED.
This Ordinance shall not become operative unless and until a majority of the electors voting on this measure vote to approve the imposition of the tax at the General Municipal Election to be held on Tuesday, November 3, 2020.
PART 9. EFFECTIVE DATE.
If this Ordinance is approved by a super-majority vote of the Grover Beach City Council and by a majority of the electors voting on the issue at the November 3, 2020 General Municipal Election, and the City Council accepts the certified results of the election, the tax will become effective on 12:01 a.m. on April 1, 2021.
INTRODUCED at a regular meeting of the City Council held November 16, 2020 and ADOPTED by the City Council on December 7, 2020 on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Council Members - Lance, Shah, Mayor Pro Tern Bright and Mayor Lee Council Members - None
Council Members - None
Council Members - None
Ordinance No. 20-10- Transactions and Use Tax Page4
PASSED, APPROVED, and ADOPTED by the Council of the City of Grover Beach on Monday, December 7, 2020.
,,..
' '
WENDLSIMS, ClTY CLERK , . . _._
APPROVED AS TO FORM:
✓•
()~f//4
DAVID HALE, CITY ATTORNEY