Hayward City Council
June 18, 2024

DATE: June 18, 2024

TO: Mayor and City Council

FROM: City Clerk

SUBJECT Adopt a Resolution Calling for the City of Hayward General Municipal Election to be Consolidated with the General Election to Be Held on November 5, 2024, for the Purpose of Electing Four Council Members for Full Terms of Four Years; and Adopt a Resolution Setting Regulations for Candidates Pertaining to Candidate Statements

RECOMMENDATION

That the City Council 1) Adopt a resolution: a) C alling and ordering to be held in t he City of Hayward, California, on Tuesday, November 5, 2024, a General Municipal Election for the purpose of electing four Council Members for full terms of four years ; b) R equesting the Alameda County Board of Supervisors to render specified services to the City relating to the conduct of a General Municipal Election (Attachment I I); and 2) Adopt a resolution establishing regulations for candidates pertaining to candidate statements submitted to the voters (Attachment III).

SUMMARY

A general municipal election will be held in the City of Hayward on Tuesday, November 5, 2024, under the authority of the City Charter and laws in the State of California. The purpose of the election is to elect four Council Members for full terms of four years. The incumbents are Council Member Andrews, Council Member Bonilla Jr., Council Member Goldstein and Council Member Zermeño.

DISCUSSION

Pursuant to the requirements of the City Charter and the Elections Code of the State of California relating to general municipal elections, the City Council is requested to adopt a resolution calling a general municipal election and requesting the Alameda County Board of Supervisors to order the consolidation of the City of Hayward General Municipal Election with the General Election to be held on Tuesday, November 5, 2024. Due to expiring terms, it is necessary to elect four Council Members for full terms of four years. The Council is also requested to adopt a resolution setting forth particulars of the election relating to candidate statements.

According to Elections Code 10220, the first day for issuing nomination papers is Monday, July 15, 2024, and the last day is Friday, August 9, 2024, at 5:00 p.m. If an incumbent decides not to seek re -election, the nomination period exte nds to Wednesday, August 14, 20 24. The Secretary of State will conduct a random alphabet drawing on August 15, 2024, to determine the order in which candidate names will appear on the ballot.

The Alameda County Registrar of Voters, through direction by the Alameda County Board of Supervisors, will provide the following services: verify signatures on nomination papers; prepare and supply indices with precinct information; provide voter registration information; assist in all election services as required in the conduct of this election; and provide services to complete the canvass of returns . With this consolidation, the City’s sample ballot and optional candidate statements will be incorporated into the Alameda County Voter Pamphlet.

The issuance and processing of candidate documents will be handled in person by contacting the City Clerk.

The Alameda County Registrar of Voters estimate s the total cost of printing, handling, translating, and mailing the candidates ’ statements, including costs incurred a s a result of complying with the Voting Rights Act of 1965, as amended. Each candidate filing a statement will be required to pay in advance an estimated pro rata share as a condition of having the statement included in the voter’s pamphlet. The estimate d cost is an approximation of the actual cost which varies from one election to another and may be significantly more or less than the estimate, depending on the actual number of candidates filing statements and other factors. Accordingly, the candidate could be billed for additional actual expenses or refunded any excess paid depending upon the final actual cost.

The 2024 Consumer Price Index adjustment for the City’s Campaign Voluntary Expenditure Limit was calculated in January and adjusted to $88,978. Hayward’s Municipal Code, Chapter 2, Article 13, Section 2-13.04 states that if a candidate accepts the voluntary expenditure limit for their campaign, then they are entitled to accept the established contribution limit, now adjusted to $1,743 per contributor. If a candidate does not accept the voluntary expenditure limit, then the contribution limit is $402 per contributor. During the election cycle, campaign disclosure statements for all candidates will be posted on the City’s website under the Elections Page – Public Portal for Campaign Finance Disclosure1 within twenty-four hours of receipt.

The General Municipal Election Calendar (Attachment I V) provides a list of pertinent dates related to the election.

1 Elections Page – Public Portal for Campaign Finance Disclosure https://public.netfile.com/pub2/Default.aspx?aid=HWD

STRATEGIC ROADMAP

This agenda item is a routine operational item and does not relate to the priorities outlined in the Council’s Strategic Roadmap.

FISCAL IMPACT

The Alameda County Registrar of Voters has published the estimated cost for consolidated elections at $4 to $6 per registered voter. Given prior election year actual expenses, the City will return to Council with the actual election cost.

PUBLIC CONTACT

Information regarding the election is available on the City’s website at: https://www.hayward- ca.gov/your-government/elections

The Notice of Election will be published in the East Bay Times – Daily Review on Friday, July 5, 2024, as prescribed by Section 12101 of the California Elections Code. Additionally, requirements pertaining to the election will be published on the City’s Elections webpage and included in the 2024 Election Guide which will be provided to each candidate running for office in the November 5, 2024 election.

Prepared and Recommended by: Miriam Lens, City Clerk

Approved by:

Dustin Claussen, Interim City Manager

ATTACHMENT II

HAYWARD CITY COUNCIL

RESOLUTION NO. 24-_____

Introduced by Council Member _______________

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAYWARD CALLING FOR A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024, FOR THE PURPOSE OF ELECTING FOUR MEMBERS OF THE CITY COUNCIL FOR TERMS OF FOUR YEARS ; AND REQUESTING THE ALAMEDA

COUNTY BOARD OF SUPERVISORS TO PROVIDE FOR THE CONSOLIDATION

OF A GENERAL MUNICIPAL ELECTION OF THE CITY OF HAYWARD WITH

THE GENERAL ELECTION

WHEREAS, under the provisions of the Hayward City Charter, a General Municipal Election for the election of officer s shall be consolidated with the General Election held in even numbered years; and

WHEREAS, a General Election will be held on Tuesday, November 5, 2024.

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

SECTION 1. That the City of Hayward General Municipal Election is hereby called and ordered to be consolidated with the General Election to be held on Tuesday, November 5, 2024, for the purpose of electing four Council Members for terms of four years ending in 2028.

SECTION 2. That i n accordance with the provisions of the S tate of California Elections Code Section 10002 and 10403, the Alameda County Board of Supervisors is requested to consolidate the City of Hayward Municipal Election with the General Election.

SECTION 3. That t he City Clerk is hereby authorized, instructed and directed to coordinate with the Alameda County Registrar of Voters to procur e and furnish any and all official ballots, sample ballot, voter information pamphlet, and all other supplies and equipment that may be necessary to properly and lawfully conduct the election.

ATTACHMENT II

SECTION 4. That the Alameda County Board of Supervisors is further requested to order the Alameda Registrar of Voters to render services at the request of the City Clerk. These services include all necessary services related to:

a. Verify signatures on nomination papers; and
b. Prepare and supply indices to precinct information; and c. Provide voter registration information; and
d. Assist in election services as ordered by State of California; and e. Provide services to complete the canvass of returns.

SECTION 5. That in the particulars not recited in this resolution, the electi on shall be held and conducted as provided by State law for holding municipal elections.

SECTION 6. The City Clerk is hereby directed to cause the posting, publication, and printing of all notices or other election materials pursuant to the requirements o f Elections and Government Codes of the State of California.

SECTION 7. That in the event of a tie vote (if any two or more persons receive an equal number of votes for an office) as certified by the Alameda County Registrar, the City Council, in accord ance with Election Code Section 15651(b), shall conduct a special runoff election to resolve the tie vote and such special runoff election is to be held on a Tuesday no less than 40 nor more than 125 days after the administrative or judicial certification of the election which resulted in a tie vote.

SECTION 8. That the City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.

SECTION 9. That the Alameda County Board of Supervisors is hereby authorized to canvass, or cause to be canvassed, as provided by law, the returns of the General Municipal Election with respect to the votes cast for four Council Members and to certify such canvass of the votes cast.

SECTION 10. That the City Clerk is hereby authorized and directed to certify to the duly adoption of this resolution and to transmit a copy thereof so certified to the Alameda County Clerk and the Alameda County Registrar.

SECTION 11. That the City Council shall meet at a regular meeting to review the canvass of the returns of the General Municipal Election and declare the results thereof, currently scheduled for December 10, 2024.

ATTACHMENT II

IN COUNCIL, HAYWARD, CALIFORNIA ______________________________, 2024

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: _____________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

__________________________________________
City Attorney of the City of Hayward

ATTACHMENT III

HAYWARD CITY COUNCIL

RESOLUTION NO. 24-_____

Introduced by Council Member ______________

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAYWARD,

CALIFORNIA, ADOPTING REGULATIONS FOR CANDIDATES F OR ELECTIVE

OFFICE PERTAINING TO CANDIDATE STATEMENTS SUBMI TTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024

WHEREAS, Section 13307 of the Elections Code of the State of Cali fornia provides that the City Council may adopt re gulations pertaining to materials prepared by a ny candidate for a municipal election, including costs of the candidate statement.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY HAYWARD, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. GENERAL PROVISIONS.

Candidate statements must be filed at the same time nomination papers are filed. Statements may not be changed once they are submitted. Statements may be withdrawn until 5:00 p.m. on the next business day after the close of the nomination period. Statements are confidential until the close of the nomination period. Statements are subject to public review and contest.

Statements may include the name, age and occupation of the candidate and a brief description of no more than 200 words of the candidate’s education and qualifications. Word counting guidelines in Elections Code Section 9 will govern the counting of words. The statement shall not include the party affiliation of the candidate, nor membership or activi ty in partisa n political organizations. Any mention of any opponent or other candidate for the same office is prohibited. Statements must be typed or printed from a computer.

Statements must be submitted in plain text formatting, single paragraph, without any formatting such as underline, bold, italics, or all caps. Signed and completed consent forms are required for each resident referenced as an endorser and for any person and any organization mentioned in the text of the statement as an endorser or supporter . Candidate statements must be attached to the form provided by the City Clerk.

ATTACHMENT III

SECTION 2. The City Clerk shall comply with all recommendations and standards set forth by the California Secretary of State regarding occupational designations and other matters relating to elections.

SECTION 3. FOREIGN LANGUAGE POLICY.

A. Pursuant to the Federal Voting Rights Act, candidate statements will be translated into all languages as required. Alameda County is required to translate candidate statements i nto Spanish, Chinese, Vietnamese and Tagalog.

B. The Alameda County Registrar of Voters will mail separate sample ballots and candidate statements in Spanish, Chinese, Vietnamese and Tagalog to those voters who are on the county voter file as having requested a sample ballot in a particular language.

SECTION 4. PAYMENT

Candidates filing a statement are required to pay in advance the estimated pro rata share as a condition of having a statement included in the voter’s pamphlet. The Alameda County Registrar of Voters estimates the total cost of printing, ha ndling, translating, and mailing, including costs incurred as a result of complying with the Voting Rights Act of 1965 . The estimate is an approximation of the actual cost which varies from one election to another election and may be significantly more or less than the estimate depending upon the actual number of candidates filing statements. Accordingly, the City Clerk is not bound by the estimate and may, on a pro rata basis, bill the candidate for additional actual expense s or refund any exce ss paid depending upon the final actual cost. In the event of underpayment, the City Clerk may require the candidate to pay the balance of the cost incurred. In the event of overpayment, the City C lerk will prorate the excess amount among the candidates and refund the excess amount paid within 30 days of the election.

SECTION 5. The City Clerk shall provide each candidate or the candidate’s representative with a copy of this resolution at the time nominating petitions are issued.

ATTACHMENT III

IN COUNCIL, HAYWARD, CALIFORNIA ______________________________, 2024

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: _____________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

__________________________________________
City Attorney of the City of Hayward

ATTACHMENT IV

GENERAL MUNICIPAL ELECTION CALENDAR
Tuesday, November 5, 2024

KEY DATES AND DEADLINES

DATE

ACTION

January 31, 2024

Semi-Annual Campaign Statement Deadline
FPPC Forms - Period covers 7/1/23 - 12/31/23

July 15, 2024

EC § 10220 Candidate Nomination Papers.

Filing Period Opens

July 31, 2024

Semi-Annual Campaign Statement Deadline
FPPC Forms - Period covers 1/1/24 - 6/30/24

August 9, 2024

EC § 10220 Candidate Nomination Papers.

Filing Period Closes

August 9, 2024

Deadline to file with County Board of Supervisors and
Alameda County Registrar of Voters (ROV) a Council
resolution requesting election consolidation.

August 10, 2024 – August 14, 2024

EC § 10225 Extended Filing Period. Candidate filing is extended if an incumbent eligible for re-election does not file by August 9, 2024. Incumbents are not eligible to file during the extended period.

August 15, 2024

EC § 13111 Randomized Alphabet Drawing.

California Secretary of State to determine order of names on ballot.

September 9, 2024 – October 22, 2024

EC § 10229(c) Statement of Write-In Candidacy and
Nomination Paper Period for Write-In Candidates.

September 26, 2024

First Pre-Election Campaign Statement Deadline
FPPC Forms - Period covers 7/1/24 - 9/21/24

October 21, 2024

Election. EC § 2102 Last Day to register to vote for the November General

October 24, 2024

Second Pre-Election Campaign Statement Deadline
FPPC Forms - Period covers 9/22/24 - 10/19/24

November 5, 2024

ELECTION DAY
EC § 1000 Polls open at 7 am and close at 8 pm

December 5, 2024

EC § 15372 Last day for ROV to certify election results to City.

December 10, 2024

EC §§ 9217, 10262, 10263 Council to certify election
results.

January 31, 2025

Semi-Annual Filing Campaign Statement Deadline
FPPC Forms – Period covers 10/20/24 - 12/31/24
California Elections Code - EC

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 24-344
DATE: June 18, 2024
TO: Mayor and City Council
FROM: Director of Human Resources

SUBJECT
Adopt a Resolution to Execute Side Letter of Agreement Amending the Memoranda of Understanding (MOU), Section 5.01 Medical Insurance between the City of Hayward and the Hayward Fire Chief’s Association (“HFCA”) to Correctly Reflect the Retiree Medical Insurance Contribution Amount

RECOMMENDATION
That the Council adopts the resolution (Attachment II) for the side letter of agreement amending International Association of Firefighters (IAFF), Local 1909 MOU, Section 5.01 Medical Insurance provision between the City of Hayward and HFCA, to correctly reflect the existing retiree medical insurance contribution amount from three hundred dollars ($300.00) per month to five hundred eight dollars and thirty cents ($508.30) for each active employee, each eligible retired employee, or the eligible survivor of a retired employee who subscribes for coverage.

SUMMARY
As a result of recent review of the January 1, 2024, published Benefit Summary document a discrepancy between the retiree medical insurance contribution amounts as stated in the Hayward Fire Chiefs’ Association MOU Section 5.01 Medical Insurance and the Benefit Summary document was discovered.

The City believes this discrepancy is an oversight and the original intent was to have the HFCA receive the same benefit provided to members of the IAFF - Local 1909 bargaining unit. While the current amount was reflected on the City’s Benefit Summary document and published on the City’s website the amount was not updated accordingly in the HFCA MOU. In response, the City desires to correct this discrepancy to ensure eligible members of the HFCA are not negatively impacted.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Side Letter of Agreement - HFCA
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DATE: June 18, 2024

TO: Mayor and City Council

FROM: Director of Human Resources

SUBJECT: Adopt a Resolution to Execute Side Letter of Agreement Amending the Memoranda of Understanding (MOU), Section 5.01 Medical Insurance between the City of Hayward and the Hayward Fire Chief’s Association (“HFCA”) to Correctly Reflect the Retiree Medical Insurance Contribution Amount

RECOMMENDATION

That the Council adopts the resolution (Attachment II) for the side letter of agreement amending International Association of Firefighters (IAFF), Local 1909 MOU, Section 5.01 Medical Insurance provision between the City of Hayward and HFCA, to correctly reflect the existing retiree medical insurance contribution amount from three hundred dollars ($300.00) per month to five hundred eight dollars and thirty cents ($508.30) for each active employee, each eligible retired employee, or the eligible survivor of a retired employee who subscribes for coverage.

BACKGROUND AND SUMMARY

As a result of recent review of the January 1, 2024, published Benefit Summary document a discrepancy between the retiree medical insurance contribution amounts as stated in the Hayward Fire Chiefs’ Association MOU Section 5.01 Medical Insurance and the Benefit Summary document was discovered.

The City believes this discrepancy was an oversight and the original intent was to have the HFCA receive the same benefit provided to members of the IAFF - Local 1909 bargaining unit as they haveall previously been membersof that group and eligible for the benefit at that level.

While the current amount was reflected on the City’s Benefit Summary document and published on the City’s website the amount was not updated accordingly in the HFCA MOU. In response, the City desires to correct this discrepancy to ensure eligible members of the HFCA are not negatively impacted.

DISCUSSION

The City and the Union have met and discussed in good faith and agree to amend Section 5.01 for the duration of the term of this MOU, to provide $508.30 per month for each eligible retired employee or survivor of a retired employee who subscribes for coverage. This

agreement shall be effective immediately upon City Council approval and shall remain in effect until the expiration of the current MOU contract dates (September 16, 2021, through June 30, 2024), between the parties.

FISCAL IMPACT

There is no fiscal impact associated with this report.

STRATEGIC INITIATIVES

This agenda item is a routine operational item and does not relate to one of the Council’s Strategic Initiatives.

NEXT STEPS

Human Resources staff will work with CalPERS to change the existing cost-sharing amounts in the CalPERS system.

Prepared by: Marisa Guerrero, Human Resources Manager

Recommended by: Brittney Frye, Director of Human Resources

Approved by:

___________________________________________
Dustin Claussen, Interim City Manager

ATTACHMENT II

HAYWARD CITY COUNCIL

RESOLUTION NO. 24-

Introduced by Council Member

RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO

EXECUTE THE SIDE LETTER AGREEMENT AMENDING THE MEMORANDUM OF UNDERSTANDING (MOU), SECTION 5.01 MEDICAL INSURANCE BETWEEN THE CITY OF HAYWARD AND THE HAYWARD FIRE CHIEFS’ ASSOCIATION (HFCA), TO CORRECTLY REFLECT THE RETIREE MEDICAL INSURNACE

CONTRIBUTION AMOUNT

WHEREAS, the current MOU, Section 5.01 Medica l Insurance between the City of Hayward and the HFCA, incorrectly reflects the monthly existing retiree medical insurance contribution amount; and

WHEREAS, the proposed change will correctly reflect the existing retiree Medical insurance contribution amount from three hundred dollars ($300.00) per month to five hundred eight dollars and thirty cents ($508.30) for each active employee, each eligible retired employee, or the eligible survivor of a retired employee who subscribes for coverage.

NOW, THEREFORE, BE IT RESOLVED THAT THE City Council hereby approves the correction to the MOU, Section 5.01 Medical Insurance provision for the period of September 16, 2021, through June 30, 2024, and authorizes staff to execute said agreement s, a copy of which will be on file in the Office of the City Clerk.

ATTACHMENT II

IN COUNCIL, HAYWARD, CALIFORNIA , 2024

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST:___________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

___________________________________________
City Attorney of the City of Hayward
Attachment III
Attachment III

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: PH 24-025
DATE: June 18, 2024
TO: Mayor and City Council
FROM: Development Services Director

SUBJECT
Sidewalk Vendor Ordinance: Introduce an Ordinance Amending Chapter 6, Article 16 of the Hayward Municipal Code Regarding the Regulation and Enforcement of Sidewalk Vendors by Amending Sections 6 -16.70 and 6-16.80 and adding 6-16.90.

RECOMMENDATION
That the City Council introduces an Ordinance (Attachment II) amending Chapter 6, Article 16 of the Hayward Municipal Code regulating the enforcement of Sidewalk Vendors, by amending Sections 6-16.70 and 6-16.80 and adding 6-16.90.

SUMMARY
On October 17, 2023, the City Council adopted an ordinance to amend the Hayward Municipal Code (HMC) to align the HMC with SB 946 (“Safe Sidewalk Vending Act”) and allow sidewalk vending activities in the City. A component of the ordinance was the creation of Chapter 6, Article 16 “Sidewalk Vendors” in the HMC. The new chapter established a regulatory framework for all sidewalk vendors operating within the public right-of-way in order to maintain public health, safety, and general welfare. Part of the regulatory framework included the establishment of a permitting program for sidewalk vending activities, known as the Sidewalk Vending Permit. The ordinance went into effect November 17, 2023.

The current enforcement procedure in Section 6-16.70 of the HMC is an alternative procedure to the administrative citation procedure set forth in Section 1-3.07 of the HMC. The current enforcement procedure of the sidewalk vending ordinance allows the City to take a more inclusive and collaborative approach with the sidewalk vendor that focuses on education and awareness of City regulations.

However, the current procedure does not have a mechanism to address sidewalk vending activities that pose an imminent health and safety risk to the public. The existing public nuisance regulations of the HMC do not provide sufficient tools to address nuisances created by sidewalk vendors. To address that issue, staff is proposing an update to the enforcement portion of the Sidewalk Vendor Ordinance to give the City the authority to impound food and equipment if the vendors are unlicensed, which may pose a risk to the public health and safety.

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ATTACHMENTS
Attachment I Staff Report
Attachment II Sidewalk Vendor Ordinance Amended
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DATE: June 18, 2024

TO: Mayor and City Council

FROM: Development Services Director

SUBJECT: Sidewalk Vendor Ordinance: Introduce an Ordinance Amending Chapter 6, Article 16 of the Hayward Municipal Code Regarding the Regulation and Enforcement of Sidewalk Vendors by Amending Sections 6-16.70 and 6-16.80 and adding 6-16.90.

RECOMMENDATION

That the City Council introduces an Ordinance (Attachment II) amending Chapter 6, Article 16 of the Hayward Municipal Code regulating the enforcement of Sidewalk Vendors, by amending Sections 6-16.70 and 6-16.80 and adding 6-16.90.

SUMMARY

On October 17, 2023, the City Council adopted an ordinance to amend the Hayward Municipal Code (HMC) to align the HMC with SB 946 (“Safe Sidewalk Vending Act”) and allow sidewalk vending activities in the City. A component of the ordinance was the creation of Chapter 6, Article 16 “Sidewalk Vendors” in the HMC. The new chapter established a regulatory framework for all sidewalk vendors operating within the public right-of-way in order to maintain public health, safety, and general welfare. Part of the regulatory framework included the establishment of a permitting program for sidewalk vending activities, known as the Sidewalk Vending Permit. The ordinance went into effect November 17, 2023.

The current enforcement procedure in Section 6-16.70 of the HMC1 is an alternative procedure to the administrative citation procedure set forth in Section 1-3.072 of the HMC.

The current enforcement procedure of the sidewalk vending ordinance allows the City to take a more inclusive and collaborative approach with the sidewalk vendor that focuses on education and awareness of City regulations. However, the current procedure does not have a mechanism to address sidewalk vending activities that pose an imminent health and safety risk to the public. The existing public nuisance regulations of the HMC do not provide sufficient tools to address nuisances created by sidewalk vendors. To address that issue, staff is proposing an update to the enforcement portion of the Sidewalk Vendor Ordinance to give

1https://library.municode.com/ca/hayward/codes/municipal_code?nodeId=HAYWARD_MUNICIPAL_CODE_CH6BUPRTR_ART16SIVE_S6-

16.70EN
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3.07ADCIPR

the City the authority to impound food and equipment if the vendors are unlicensed, which may pose a risk to the public health and safety.

BACKGROUND

Senate Bill (SB) 946 was signed into law on September 17, 2018, by former Governor Jerry Brown. Effective January 1, 2019, SB 946 decriminalized sidewalk vending statewide and limits local jurisdictions’ authority to regulate sidewalk vending. Further, SB 946 preempts any contrary local regulations, requiring any local regulation of sidewalk vending be consistent with SB 946. On Tuesday, October 17, 2023, the City Council adopted the Sidewalk Vendor Ordinance3, which became effective on November 17, 2023.

Since the effective date of the Sidewalk Vendor Ordinance, staff has engaged in various efforts to educate the public about the sidewalk vending regulations and activities and to help new vendors navigate the permitting process. Since January 2024, the City’s Planning Division, in collaboration with Code Enforcement staff, has held monthly Sidewalk Vending Permit community workshops at the Downtown Library with the purpose of educating vendors on the City’s recently adopted guidelines, explain the application submittal checklist, respond to general questions about permitting and enforcement, and provide one-on-one assistance to help vendors apply for the Sidewalk Vending Permit through the City’s e-Permits portal.

The workshops and all handout materials are provided in both English and Spanish, with an option for other translation services provided upon request. In addition to City staff, staff from Alameda County Department of Environmental Health (ACDEH) also attended these workshops and provided information on the County’s Mobile Food Facility (MFF) permitting process and highlight upcoming ACDEH workshops, which are also held monthly at County offices.

To date, the City’s Code Enforcement Division has taken an “education-first” approach, as outlined in the Sidewalk Vendor Ordinance, which is tied to their enforcement activities.

After participating in the monthly workshops, Code Enforcement staff has followed up with in-person education and verbal warnings to active vendors to promote compliance.

However, despite these efforts, unpermitted sidewalk vending has continued throughout the City which has created additional public health and safety issues. Code Enforcement staff has responded to 85 unpermitted sidewalk vendor incidents throughout Hayward since the Ordinance went into effect in February 2024. In fact, two primary corridors have been identified as repeat hotspot locations for vending activity: along Winton Avenue and along Tennyson Road.

DISCUSSION

Current Enforcement Procedure: As summarized above, Section 6-16.70 of the HMC outlines the enforcement procedures tied to the Sidewalk Vendor Ordinance. It is an alternative procedure to that of the administrative citation procedure set forth in Section 1-3.074 of the

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3.07ADCIPR

Hayward Municipal Code. The current enforcement procedure is consistent with the maximum fine amounts outlined in SB946 as described below:

 For the first incident, a verbal warning be given along with educational materials to the vendor which outlines the sidewalk vending regulations and permit process.  For the second incident, a written warning was issued, which specifies the regulation being violated along with educational materials and includes a timeline for compliance.  For the third incident, the following administrative citation procedures would apply:

If a vendor violates local regulations, other than operating without a permit, the following maximum fine amounts apply:

First Violation Administrative Fine of $100
Second Violation Within One Year of First Administrative Fine of $200 Each Additional Violation Within One Year of the First Administrative Fine of $500

If a sidewalk vending permit is required and the vendor is operating without a permit, the following fine amounts would apply:

First Violation Administrative Fine of $250
Second Violation Within One Year of First Administrative Fine of $500 Each Additional Violation Within One Year of the First Administrative Fine of $1,000

If selling food, the vendor is also required to obtain a Mobile Food Facility Permit issued by ACDEH. Once a complaint is filed alleging the vendor is potentially violating provisions of the California Health and Safety Code, an ACDEH Inspector will investigate and if a violation is verified, will prepare a Notice of Violation. ACDEH generally responds within a week, depending on staffing and other circumstances, such as the number of inspectors required to be effective, if translation services are needed, if coordination with other agencies is required, or if overtime for staff is needed.

For a first violation, the Notice of Violation is sent that informs the vendor that they’re in violation of the state Health and Safety Code, cites the specific regulation that they’re violating, and provides outreach documents that contain instructions on how to become compliant. For a second violation, an Inspector from the Department of Environment Health will contact the vendor again to highlight the violation as well as provide the necessary documentation to be compliant with health and safety codes. In some instances, the cart/pushcart will be impounded by ACDEH. ACDEH issues immediate Cease and Desist Notices for unpermitted vending activity in violation of County Health Regulations in addition to the Notice of Violation. The Cease and Desist Notices require immediate compliance. While inspectors do not have arrest powers to physically remove vendors from site, they typically remain on site with support from law enforcement, if available, until the vendor has vacated.

Draft Amendments: While City staff has engaged the community by focusing outreach efforts on education and the permit process, sidewalk vendors have continued to operate unpermitted throughout the City. To address potential public health and safety concerns associated with these activities, staff is proposing to amend Section 6, Article 16 of the

Municipal Code (Sidewalk Vending Ordinance) to include the option to impound items, food, and equipment, which may serve as a deterrent for vendors operating without the necessary permits and provide the City with an additional enforcement mechanism. Staff opines that with the added impoundment authority, the enforcement abilities to address public health, safety, and welfare concerns under the Ordinance will be strengthened while still continuing to create a pathway for vendors to legally operate in the City, thus supporting new business growth and entrepreneurship.

An overview of the proposed text amendments is outlined below and proposes to update the HMC to accommodate the proposed Sidewalk Vendor Program.

 Amend Section 6-16.70 “Enforcement”. This proposed amendment would change the title of this section from “Enforcement” to “Penalties and Administrative Citations”.

For clarity, the authority to enforce the provisions by verbal warning and administrative citations will be separate from the impoundment provisions of the Ordinance.

Add Section 6-16.80 “Impoundment”. This section is added to give the City the authority to impound “vending devices, food, goods, and/or merchandise” that “reasonably appear to be abandoned on public property”; “are displayed, offered, or made available for rent or sale by a sidewalk vendor who (A) operates in violation of the Sidewalk Vendor Ordinance and (B) refuses to remove their vending device, food for sale and/or goods/merchandise for sale after being instructed to do so” by a Code Enforcement Officer; “are displayed, offered, or made available for rent or sale by a sidewalk vendor who (A) does not possess a valid applicable Sidewalk Vending Permit; and (B) also refuses to remove their vending device, food for sale, and/or goods/merchandise for sale after being instructed to do so by a” Code Enforcement Officer; or is “(A) creating an imminent and substantial safety or environmental hazard by the location of the vending device or the nature of the goods being offered for sale, and (B) refuses to remove their vending device, food for sale, and/or goods/merchandise for sale after being instructed to do so” by a Code Enforcement Officer. Under the proposed amendment, the City may immediately dispose of impounded materials that are perishable or cannot be safely stored. The proposed amendment also gives the City Council the authority to establish an impound fee, creates an appeal process of the impoundment of a sidewalk vendors’ devices, materials, and equipment, and gives the City the authority to auction or dispose of unclaimed items.

 Add Section 6-16.90 “City Manager Authority”. Given that the former 6-16.80 “City Manager Authority” was replaced with the “Impoundment” provisions, a new section for “City Manager Authority would be created.

Proposed Enforcement. Unless there is a particularly substantive danger associated with the sidewalk vendor’s conduct, it is staff’s intent to allow all sidewalk vendors violating the ordinance a verbal warning and receipt of educational materials in accordance with Section 6-

16.70(a)(1) of the Ordinance. Upon observance of unpermitted vending activity, vendors would be required to provide the necessary personal identification. After the vendor provides a valid

personal identification, the vendor will be logged in the Code Enforcement case management system and immediately issued a citation with an order to vacate the location immediately. If a sidewalk vendor does not comply with the repeated warnings given pursuant to Sections 6-

16.70(a)(1) and (a)(2) of the Ordinance, staff may begin issuing administrative citations in accordance with Section 6-16.70(a)(3) of the Ordinance. Following multiple violations of the proposed regulations, sidewalk vendors would be subject to additional fines as set forth in Section 6-16.70(a)(3) of the Ordinance.

If fines are not adequately addressing a particular violation, the vendor does not provide personal identification, the vendor fails to respond to orders to immediately vacate, or there is vending activity which constitutes an imminent and substantial safety or environmental hazard, the City may impound any vending equipment or goods that are contributing to this hazard pursuant to Section 6-16.80(a)(2). An example of a condition that is considered an imminent and substantial safety hazard include those that pose a fire risk. However, imminent and substantial safety or environmental hazards related to food is determined by ACDEH in accordance with California Health and Safety Code Section 11493.

The impoundment process entails the following:

 Code Enforcement will contact Hayward Police for immediate standby.  The physical condition of all impounded goods shall be documented in an effort to ensure that goods are returned to owners in the same physical condition.  Code Staff shall issue to the offending party a receipt for any property removed and impounded including contact information by which to retrieve goods.  Staff will be required to place all items in an available abatement trailer and transport to secure chain of custody storage facility for limited term storage.

The sidewalk vendor would be required to pay the cost of impound and the cost of any storage and has the right to appeal the impoundment within 10 days. pursuant to Section 6-

16.80(c) by requesting an administrative hearing before a hearing officer appointed by the City pursuant to Chapter 1, Article 7 of the HMC. If successful in their appeal, the vendor may have their property returned without paying an impound fee. If the appeal is unsuccessful or not filed, all items impounded will remain at a specialized storage facility and will be available to the owner upon payment of impound fees for 90 calendar days. If a vendor submits a claim for impounded items within the 90-day timeframe, then the items will be scheduled for pick up by Code Enforcement staff at the secure facility and made available to the property owner via scheduled appointment at City Hall. Any items unclaimed by 5 p.m. on the 90th calendar day will not be available for pick up and will be forfeited to the City. The City has the authority to auction or dispose of forfeited items after 5 p.m. on the 90th day.

Code Enforcement staff are working to identify the most appropriate location and service for chain-of-custody storage. Currently staff is in conversations with Safestore USA, who provides secure chain of custody services for a variety of law enforcement agencies in the San Francisco Bay Area and is located in San Leandro, California.

Environmental Review. Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15060(c)(2), the City Council finds that this ordinance will not have a direct or reasonably foreseeable indirect physical change in the environment and, therefore, is not subject to CEQA. Additionally, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment per Section 15061(c).

Additionally, pursuant to Section 15060(c)(3), the activity is not a “project” as defined in Section 15378 because it does not have the potential for resulting in physical change to the environment, directly or indirectly.

STRATEGIC ROADMAP

In January 2020, the City Council adopted six Strategic Priorities as part of its three-year Strategic Roadmap. The Strategic Roadmap was updated in June 2023. This agenda item supports the Strategic Priority of Grow the Economy. Specifically, this item relates to the implementation of the following:

Project E5: Final Sidewalk Vendor Ordinance and provide a training on how to apply for a business license.

ECONOMIC IMPACT

While the specific economic impact is unknown, as new businesses, sidewalk vendors will be required to obtain a business license and pay State and local taxes, akin to brick-and-mortar businesses.

FISCAL IMPACT

The proposed amendment gives the City Council the authority to establish an impoundment fee by resolution.

SUSTAINABILITY FEATURES

The draft ordinance amendments do not include any Sustainable Features.

PUBLIC CONTACT

The summary of the Ordinance was published in the Daily Review c/o Bay Area News Group/East Bay on Friday, June 7, 2024.

NEXT STEPS

If the Council introduces the attached ordinance this evening, a second reading and adoption will be brought back during a regular meeting scheduled on June 25, 2024. If approved, the proposed text amendments will be effective 30 days after adoption.

Prepared by: Rozalynne Thompson, Senior Planner

Recommended by: Sara Buizer, Development Services Director

Approved by:

_________________________________
Dustin Claussen, Interim City Manager

Attachment II

ORDINANCE No. 24-

ORDINANCE OF THE COUNCIL OF THE CITY OF HAYWARD AMENDING CHAPTER 6, ARTICLE 16 OF THE HAYWARD MUNICIPAL CODE RELATED TO REGULATIONS FOR SIDEWALK VENDING BY AMENDING SECTIONS 6-16.70 AND 6-16.80 AND ADDING 6-16.90.

THE CITY COUNCIL OF HAYWARD DOES ENACT AS FOLLOWS:

Section 1. Chapter 6, Article 16, of the Hayward Municipal Code is hereby amended to read as follows:

ARTICLE 16 – SIDEWALK VENDORS
SEC. 6-16.70 ENFORCEMENT PENALTIES AND ADMINISTRATIVE CITATIONS. (a) Persons found vending in violation of this Article are subject to the following enforcement procedure:
(1) For the first incident, a verbal warning will be given along with materials outlining the rules and regulations for sidewalk vending and the application process; (2) For the second incident, a written warning will be issued specifying the provision of this Article that has been violated as well as materials outlining the rules and regulations for sidewalk vending and the application process; (3) For the third incident, persons found in violation of this Article shall be subject to the Administrative Citation procedures found in Chapter 1, Article 7.

Administrative Citations, of the Hayward Municipal Code, subject to the fines below:
(a) Persons that violate local regulations, other than operating without a permit, are punishable by an administrative fine not to exceed:
(1) One hundred dollars ($100.00) for a first violation; or (2) Two hundred dollars ($200.00) for a second violation within one year of the first violation; or
(3) Five hundred dollars ($500.00) for each additional violation within one year of the first violation.

Attachment II

(b) Persons vending without a sidewalk vending permit are punishable by an administrative fine not to exceed:
(1) Two hundred fifty dollars ($250.00) for the first violation; or (2) Five hundred dollars ($500.00) for a second violation within one year of the first violation; or
(3) One thousand dollars ($1,000.00) for each additional violation within one year of the first violation.
(c) All administrative citations will be accompanied by a notice advising the person of their right to request an ability-to-pay determination and the process for requesting an ability-to-pay determination. (b) Appeals. The appeals process contained in Chapter 1, Article 7 shall apply to citations issued under this Article as well as requests for an ability-to-pay determination. An administrative fine imposed pursuant to this Article need not be paid as a pre-requisite to requesting an appeal hearing or a hearing to determine ability-to-pay an administrative fine.

SEC. 6-16.80 CITY MANAGER AUTHORITY IMPOUNDMENT.

The City Manager, or their Designee, shall have the authority to establish administrative policies and regulations that may be necessary to implement the provisions of this Article. (a) The city may impound vending devices, food, goods, and/or merchandise that:
(1) Reasonably appear to be abandoned on public property; or (2) Are displayed, offered, or made available for rent or sale by a sidewalk vendor who (A) operates in violation of this chapter and (B) refuses to remove their vending device, food for sale and/or goods/merchandise for sale after being instructed to do so by a city enforcement official; or
(3) Are displayed, offered, or made available for rent or sale by a sidewalk vendor who (A)does not possess a valid applicable Sidewalk Vending Permit; and (B) also refuses to remove their vending device, food for sale, and/or goods/merchandise for sale after being instructed to do so by a city enforcement official; or (4) Is (A) creating an imminent and substantial safety or environmental hazard by the location of the vending device or the nature of the goods being offered for sale, and (B) refuses to remove their vending device, food for sale, and/or goods/merchandise for sale after being instructed to do so by a city enforcement official; or

Attachment II

(b) The city may immediately dispose of impounded materials that are perishable or cannot be safely stored.
(c) An aggrieved vendor may, within ten days, appeal the impoundment of their property by requesting an administrative hearing before a hearing officer appointed by the city pursuant to Chapter 1, Article 7 and if successful in their appeal, may have their property returned without paying an impound fee. The appeal hearing shall be conducted pursuant to the administrative enforcement hearing procedure contained in Chapter 1, Article 7 in the Hayward Municipal Code. Any appeal fee paid by the sidewalk vendor shall be returned to the sidewalk vendor if they are successful on appeal. (d) An individual may recover impounded materials upon paying applicable impound fees and demonstrating proper proof of ownership.
(e) The city council may by resolution adopt impound fees, which shall reflect the city’s enforcement, investigation, storage, and impound costs. (f) Any unclaimed items will be considered abandoned and forfeited to the city after ninety days following impoundment.

SEC. 6-16.90 CITY MANAGER AUTHORITY.

The City Manager, or their Designee, shall have the authority to establish administrative policies and regulations that may be necessary to implement the provisions of this Article.

Section 2. California Environmental Quality Act. Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15060(c)(2), the City Council finds that this ordinance will not have a direct or reasonably foreseeable indirect physical change in the environment and, therefore, is not subject to CEQA.

Additionally, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment per Section 15061(c).

Additionally, pursuant to Section 15060(c)(3), the activity is not a “project” as defined in Section 15378 because it does not have the potential for resulting in physical change to the environment, directly or indirectly.

Section 3. If any section, subsection, paragraph or sentence of this Ordinance, or any part thereof, is for any reason found to be unconstitutional, invalid or beyond the authority of the City of Hayward by a court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance.

Section 4. This Ordinance shall become effective thirty (30) days after adoption by the City Council.

Attachment II

INTRODUCED at a regular meeting of the City Council of the City of Hayward, held the ___ day of __, 2024, by Council Member _______,

ADOPTED at a regular meeting of the City Council of the City of Hayward, held the ___ day of ______, 2024, by the following votes of members of said City Council.

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ___________________________________
Mayor of the City of Hayward

DATE: ___________________________________________

ATTEST: ________________________________________
City Clerk of the City of Hayward
APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: LB 24-016
DATE: June 18, 2024
TO: Mayor and City Council
FROM: Interim City Manager

SUBJECT
Adoption of a Resolution Establishing November 5, 2024, as the Date for an Election on a Proposed Ballot Measure Asking Hayward Voters to Extend Without Increasing the City of Hayward Half-Cent Sales Tax for an Additional Twenty Years

RECOMMENDATION
That Council takes the following actions to place a ballot measure to extend without increasing the City of Hayward half-cent sales tax for an additional twenty years at the November 5, 2024, election: 1. Adopts the attached Resolution (Attachment II) approving the proposed ballot question as it will appear on the ballot, and the underlying ordinance to be enacted, and requesting the Alameda County Board of Supervisors authorize the Registrar of Voters to provide election services and canvass the returns; and 2.

Directs the City Attorney to develop an impartial analysis of the proposed measure.

SUMMARY
The Hayward half-cent sales tax was enacted on June 3, 2014, by passage of Measure C. Having reached the halfway point in the 20-year authorization of the sales tax, Council directed staff to consider how to use the sales tax dollars for the remaining 10 years as well as the potential for addressing emerging needs through an extension of the tax beyond 2034. At the May 21 Council meeting, Staff presented the results of community listening and polling which showed that 66% of sampled voters reported support for a 30-year extension and 72% for a 20-year extension. At that meeting, Council directed staff to return with a resolution to add a ballot measure to the November ballot extending the half-cent sales tax by an additional 20 years to 2054. The attached resolution (Attachment II) is the mechanism by which Council would place this measure on the November 5, 2024, ballot for voter consideration.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Resolution for Ballot Arguments
Attachment IV Signature Statement Forms
CITY OF HAYWARD Printed on 6/14/2024Page 1 of 2
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File #:LB 24-016
CITY OF HAYWARD Printed on 6/14/2024Page 2 of 2
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DATE: June 18, 2024

TO: Mayor and City Council

FROM: Interim City Manager

SUBJECT: Adoption of a Resolution Establishing November 5, 2024, as the Date for an Election on a Proposed Ballot Measure Asking Hayward Voters to Extend Without Increasing the City of Hayward Half -Cent Sales Tax for an Additional Twenty Years

RECOMMENDATION

That Council takes the following actions to place a ballot measure to extend without increasing the City of Hayward half-cent sales tax for an additional twenty years at the November 5, 2024, election:

1. Adopts the attached Resolution (Attachment II) approving the proposed ballot question as it will appear on the ballot, and the underlying ordinance to be enacted, and requesting the Alameda County Board of Supervisors authorize the Registrar of Voters to provide election services and canvass the returns; and

2. Directs the City Attorney to develop an impartial analysis of the proposed measure.

SUMMARY

The Hayward half-cent sales tax was enacted on June 3, 2014, by passage of Measure C.

Having reached the halfway point in the 20-year authorization of the sales tax, Council directed staff to consider how to use the sales tax dollars for the remaining 10 years as well as the potential for addressing emerging needs through an extension of the tax beyond 2034. At the May 21 Council meeting, Staff presented the results of community listening and polling which showed that 66% of sampled voters reported support for a 30-year extension and 72% for a 20-year extension. At that meeting, Council directed staff to return with a resolution to add a ballot measure to the November ballot extending the half-cent sales tax by an additional 20 years to 2054. The attached resolution (Attachment II) is the mechanism by which Council would place this measure on the November 5, 2024, ballot for voter consideration.

BACKGROUND

2014 Passage of Measure C
In the aftermath of the 2008 Great Recession, the City worked diligently to structurally

reset the City's General Fund and Enterprise Fund operating budgets to provide a sustainable future for City operations, protect benefits for employees, and ensure continued service delivery to the community. At the same time, the City faced significant unfunded needs, including over $500 million in unfunded capital needs. In the summer of 2013, the City began to evaluate options for funding some of the more immediate of these capital facilities needs. Staff and the Council Budget & Finance Committee initially explored the option of placing a facility bond measure on an upcoming ballot. However, as the City embarked on community outreach efforts related to a possible ballot measure, it became clear that the community was interested in a mix of enhanced public services in addition to improvements to capital facilities. As such, the City conducted voter surveys to test the likelihood of either a bond measure or a sales tax measure being successfully approved. While a bond measure would be limited to funding specified capital facility projects, a sales tax measure would provide flexibility in funding either capital facilities or desired public services.

The Hayward half-cent sales tax was enacted on June 3, 2014, by passage of Measure C.

Measure C was approved by 67% of voters who cast ballots in the election—well in excess of the simple majority necessary for authorization. Though enacted as a general tax with revenue available for use for any lawful municipal purpose, the City Council indicated when placing the measure on the ballot its intention to use the sales tax dollars to fund, finance and otherwise support certain core services and capital projects identified as community and City priorities.

Those priorities were police protection, firefighter and emergency medical services, updating and seismically reinforcing fire stations, replacing the downtown library, pothole repair and road improvements, litter and graffiti control and general maintenance of public spaces.

Use of Sales-Tax Revenue Between 2014-2024
Since enactment, the City has stuck to and delivered on the Council’s intent and community expectations. The four capital projects identified as funding priorities in 2014 have all been completed. They are:

 The new Downtown Hayward Public Library and adjacent Heritage Plaza;  Retrofits and improvements at five neighborhood fire stations;  Six miles of street repairs amounting to the biggest annual road improvement project in City history; and
 The new Fire Station No. 6 and regional Fire and Rescue Training Center.

Additionally, as intended, Measure C revenue has and continues to be used to bolster Hayward Police, 911 emergency dispatch and Maintenance Services staffing to restore and enhance core municipal services prioritized in 2014 by the Council and the Hayward community. Today, sales-tax revenue funds fourteen Hayward Police Department positions, including three patrol officers, a police lieutenant, a crime analyst, a fingerprint analyst, plus seven communications operators and one communications supervisor in the City’s 9-1-1 Dispatch Center, and nine groundskeeper and maintenance positions in the Maintenance Services Department.

Ongoing Spending Needs and Unfunded Capital Projects
Having reached the halfway point in the 20-year authorization of the sales tax and given completion of the original Measure C facility projects, Council directed staff to consider how to use the sales tax dollars for the remaining 10 years of the authorization as well as the potential for addressing remaining and emerging needs and goals through an extension of the tax beyond 2034.

To prepare, staff undertook a multi-department review of unfunded City capital projects and service needs. In addition, staff completed a two-pronged program of community listening and engagement and public opinion research to understand community priorities and voter support for a potential November 2024 ballot measure to extend without increasing the sales tax beyond its 2034 sunset date.

Staff presented the results of the community listening and polling at the May 21, 2024 City Council meeting. The report for that meeting provides a detailed overview of the results. In summary, 66% of sampled voters reported they support a 30-year extension and 72% reported they support a 20-year extension. According to the survey findings, funding for pothole and street repair, fire protection, improving 911 emergency response times, enhancing transportation safety generally and providing police patrols are the highest priority for Hayward voters.

At the May 21 meeting, Council directed staff to return with a resolution to add a ballot measure to the November 5, 2024 ballot extending the half-cent sales tax by an additional 20 years to 2054.

DISCUSSION

Proposed Ballot Language
The following ballot language was used in the public opinion poll of registered voters. In that poll, 72% of respondents reported they would support a measure with this language.

To continue providing essential City of Hayward services, including firefighting, emergency-medical response, police protection, pothole repair, street improvements, general City maintenance, and modernization of aging City facilities, including for police, public works, and South Hayward community and library services; shall a City of Hayward measure to continue (without increasing) an existing half-cent sales tax for 20 years, providing $20,000,000 annually that cannot be taken by the State, requiring annual audits and public disclosure, be adopted?

YES
NO

The attached resolution (Attachment II) is the mechanism by which Council would place this measure on the November 5, 2024, ballot for voter consideration. Any final decisions made at this meeting would be incorporated into the resolution for submission to the County Registrar of Voters. The deadline to submit materials for placing the measure on the November ballot is August 9, 2024. Staff recommends that the Council take action tonight to place a measure with the above language on the November 5, 2024, ballot. If the voters approve the ballot question in November, the Ordinance included in Attachment II would be enacted automatically.

Spending Priorities
While the sales tax measure is proposed as a general tax (meaning that the funds would go into the General Fund and could not be dedicated for specific purposes), Council can identify possible uses for these additional funds to provide the voting public with assurances that the funds will be used for identified community needs and priorities.

Identifying possible funding priorities for the measure provides an important oversight function. The elected City Council is the ultimate oversight committee for the use of these revenues. The annual budget process provides an opportunity for public input and Council direction on spending and for staff to be held accountable on the use of the funds.

Additional oversight of all funds would also occur throughout the year at the Council Budget & Finance Committee meetings, as part of the Mid-Year financial report to Council, and during the Council budget hearings.

In the May 21 report, staff provided a list of unfunded needs that fit within the priorities indicated through the community listening and public opinion research. Table 1 shows the estimated cost range of each of the items. If Council were to place this measure on the November ballot and voters were to approve the measure, staff is recommending that Council complete a prioritization exercise in January 2025 to determine which of these items be funded through the half-cent sales tax revenue.

Staff estimates a 20-year extension will generate approximately $187-$204 million in financing debt capacity to fund capital projects through 2054. This estimate assumes that the half-cent sales tax continues to support the current annual operating services (the positions listed in the background section of this report) with normal annual growth. Note that the estimated financing debt capacity would not be sufficient to cover the full list of capital projects shown in Table 1 and would be further reduced if any new services are added to the annual operating expenses.

Table 1: Potential Capital Projects and New Services with Estimated Costs Capital Projects Estimated Cost
Public Safety Center, including Animal Shelter & Dispatch Center $145 - $200 Million Weekes Branch Library Facility Improvements $20 - $25 Million Fire Station No. 9 Facility Replacement $8.6 Million
Maintenance & Utilities Corporation Yard Facility Improvement $25 Million Contribution to The Stack Youth & Family Center in South Hayward $14 Million A variety of roadway and transportation improvement projects, including pedestrian and bicycle overcrossings and underpasses along the Tennyson Road corridor
$138 Million

City Operations – New Services Cost Estimate
Hayward Public Library - Sunday hours $1.5-$3.5 Million annually
Support for Hayward Evaluation and Response Teams (HEART) program
$1.2 - $2.3 Million
annually
Creation of a Safe Parking program, as part of the City’s Let’s House Hayward! strategic plan to reduce homelessness
$1.5-2 Million initial
set up and $800,000-
$1 Million annually
Sustain COVID-19 pandemic recovery initiatives supporting local business $100,000 annually

FISCAL IMPACT

Over the last few years, the half-cent sales tax has generated between $20-$23 million in annual funding to the City. All funds generated by the local sales tax are locally controlled and remain in Hayward to provide essential city services and facility improvements. By law, the State could not take this funding away.

Should Hayward voters approve the 20-year extension of the half-cent sales tax being proposed, there would be no increase on the sales tax rate in Hayward, which is currently

10.75%.

STRATEGIC ROADMAP

Measure C sales-tax funded projects and services contribute most directly to Strategic Roadmap priorities of Enhancing Community Safety & Quality of Life, Strengthening Organizational Health, and Investing in Infrastructure.

NEXT STEPS

If the Council adopts the resolution tonight placing the measure on the November 5, 2024, ballot, staff will work closely with the City Clerk and City Attorney to submit all of the required documentation to the County Registrar of Voters by the deadline. The City Attorney will also

draft the impartial analysis of the measure for submittal. Below is a schedule of other key dates related to a November 2024 election:

Table 2: Schedule of Key Dates
Date Deadline/Task
August 9, 2024 Deadline to file with County Board of Supervisors the ballot measure question, ballot measure full text, City Attorney Impartial Analysis (Election Code 9280-9287)
August 14, 2024 Last day to withdraw a measure from the ballot (EC 9605) August 12, 2024
(noon, 12pm)
Last day to file direct arguments with City Clerk (EC 9282, 9286) August 12 – 22, 2024 Public review period for direct arguments (EC 9295) August 16, 2024
(noon, 12pm)
Last day to file rebuttal arguments with City Clerk (EC 9285) August 16 – 26, 2024 Public review period for rebuttal arguments (EC 9295) August 26, 2024 Deadline to submit direct arguments and rebuttal arguments to the Registrar of Voters

Prepared by: Michael Vigilia, Senior Assistant City Attorney Miriam Lens, City Clerk
Michael Lawson, City Attorney
Nicole Gonzales, Director of Finance
Chuck Finnie, Communications and Marketing Officer
Mary Thomas, Assistant to the City Manager

Approved by:

_____________________________________________
Dustin Claussen, Interim City Manager

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HAYWARD CITY COUNCIL

RESOLUTION NO. 24-_____

Introduced by Council Member _______________

RESOLUTION OF THE CITY OF HAYWARD ESTABLISHING NOVEMBER 5, 2024, AS THE DATE FOR AN ELECTION ON A PROPOSED BALLOT MEASURE

SEEKING VOTER APPROVAL RELATING TO AN EXTENSION OF THE

TRANSACTIONS AND USE (SALES) TAX FOR TWENTY YEARS , THROUGH 2054, AND REQUESTING THE BOARD OF SUPERVISORS OF ALAMEDA

COUNTY TO CONSOLIDATE SAID ELECTION WITH THE STATEWIDE GENERAL ELECTION; AND AUTHORIZING CERTAIN OTHER ELECTION

ACTIVITIES

WHEREAS, the Hayward City Council is authorized by California Elections Code Section 9222 to place measures before the voters; and

WHEREAS, Elections Code Sections 9281 through 9287 set forth the procedures for arguments in favor of and in opposition to any City ballot measure and for rebuttal arguments; and

WHEREAS, on March 4, 2014 the City Council placed Measure C, a ballot measure regarding a general transactions and use (sales) tax before the voters for the June 3, 2014 general election; and

WHEREAS, Measure C authorized the imposition of a 0.50% tax on the sale price of tangible personal property and the storage, use, or other consumption of such property; and

WHEREAS, during the June 3, 2014 general election Measure C received a majority of votes in favor of imposing the tax; and

WHEREAS, the tax imposed by Measure C will expire after 20 years, on December 31, 2034; and

WHEREAS, November 5, 2024 is the date of the Statewide General Election and it is desirable that the election on the City's ballot measure be consolidated with the Statewide General Election to be held on the same date; that within the City, the precincts, polling places and election officers of the two elections be the same; and that the Alameda County Registrar of Voters canvass the returns of the consolidated election and that the election be held in all respects as if there were only one election; and

Attachment II
[Ty pe here] [Ty pe here] [Ty pe here]

WHEREAS, based on all of the information presented at the June 18, 2024 meeting, both written and oral, including the staff reports, minutes, and other relevant materials, the City Council finds that under CEQA Guidelines 15060(c)(2) and 15378, subdivisions (2) and (4) of subdivision (b), this action does not constitute a project under CEQA and therefore review under CEQA is not required.

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

1. Recitals. The foregoing recitals are true and correct and are hereby incorporated by reference.

2. Call Election; Placement of Measure on the Ballot. Pursuant to California Constitution Article XIIIC, Section 2; Government Code Section 53724; and Elections Code Section 9222, the City Council of the City of Hayward hereby calls an election at which it shall submit to the qualified voters of the City, a measure that, if approved, would adopt a temporary general transactions and use (sales) tax, as authorized by Revenue and Taxation Code Section 7285.9. This measure shall be designated by letter by the Alameda County Registrar of Voters. Pursuant to Election Code Section 10400 et seq., the election for this measure shall be consolidated with the established election to be conducted on November 5, 2024.

3. Ballot Language. The question to be presented to the voters shall be as follows:

To continue providing essential City of Hayward services, including firefighting, emergency-medical response, police protection, pothole repair, street improvements, general City maintenance, and modernization of aging City facilities, including for police, public works, and South Hayward community and library services; shall a City of Hayward measure to continue (without increasing) an existing half-cent sales tax for 20 years, providing $20,000,000 annually that cannot be taken by the State, requiring annual audits and public disclosure, be adopted?

YES
NO

4. Proposed Ordinance. The ordinance authorizing the general tax to be approved by the voters pursuant to Sections 2 and 3 of the Resolution is as set forth in A ttachment 1 hereto. The City Council hereby approves the ordinance, the form thereof, and its submission to the voters of the City at the November 5, 2024 election, as required by Revenue and Taxation Code Section 7285.9, subject to the approval of a majority of the voters voting on the measure at the election called by the adoption of this resolution. The entire text of the ordinance, attached hereto as Attachment 1, will be [Ty pe here] [Ty pe here] [Ty pe here]

available on the City of Hayward’s website or by contacting the City Clerk . The ordinance specifies that the rate of the transactions tax shall be one-half of one percent (0.50%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City; it specifies that the rate of the use tax shall be one-half of one percent (0.50%) of the sales price of tangible personal property stored, used or otherwise consumed in the City, and that the tax shall be in effect for twenty years. The State Board of Equalization shall collect the tax from retailers subject to the tax and remit the funds to the City.

5. Publication of Measure. The City Clerk is hereby directed to cause notice of the measure to be published once in the official newspaper of the City of Hayward, in accordance with Section 12111 of the Elections Code and Section 6061 of the Government Code.

6. Request to Consolidate and Conduct Election and Canvass Returns.

(a) Pursuant to the requirement of Section 10403 of the Elections Code, the Board of Supervisors of the County of Alameda is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday November 5, 2024, for the purpose of placing the measure set forth in Sections 3 and 4 on the ballot.

(b) The County of Alameda Registrar of Voters is authorized to canvass the returns of the municipal election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used.

(c) The Board of Supervisors is requested to issue instructions to the Alameda County Registrar of Voters to take any and all steps necessary for the holding of the consolidated election.

(d) The City of Hayward recognizes that additional costs will be incurred by the County of Alameda by reason of this consolidation and agrees to reimburse the County for any costs.

7. Submission of Ballot Argument and Impartial Analysis.

(a) The last day for submission of direct arguments for or against the measure shall be by noon, 12:00 p.m. on August 12, 2024.

(b) The last day for submission of rebuttal arguments for or against the measure shall be by noon, 12:00 p.m. on August 16, 2024.

(c) Direct arguments shall not exceed three hundred (300) words and shall be signed by not more than five persons.

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(d) Rebuttal arguments shall not exceed two hundred fifty (250) words and shall be signed by not more than five persons; those persons may be different persons than the persons who signed the direct arguments.

(e) The City Attorney shall prepare an impartial analysis of the measure by August 8, 2024 and such analysis shall not exceed five hundred (500) words.

(f) Pursuant to California Elections Code Section 9285, when the City Clerk has selected the arguments for and against the measure, which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument, which it seeks to rebut.

8. Effective Date. This Resolution shall become effective immediately upon its adoption and the City Clerk is directed to send certified copies of the Resolution to the Alameda County Board of Supervisors and the Alameda County Registrar of Voters.

9. CEQA. The approval of this Resolution is exempt from the California Environmental Quality Act (Public Resources Code§§ 21000 et seq., "CEQA," and 14 Cal. Code Reg.§§ 15000 et seq., "CEQA Guidelines"). The transactions and use (sales) tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the action is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have either such effect, the city would undertake the required CEQA review for that particular project. T h i s a c t i o n i s a l s o n o t a p r o j e c t p u r s u a n t t o CEQA Guidelines 15060(c)(2) and 15378 (2) Therefore, review under CEQA is not required.

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IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2024

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward
APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

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ATTACHMENT I

ORDINANCE NO.

AN ORDINANCE OF THE PEOPLE OF THE CITY OF HAYWARD EXTENDING THE TRANSACTIONS AND USE (SALES) TAX FOR 20 YEARS THROUGH 2054,

TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION

WHEREAS, a locally -enacted revenue measure would protect and maintain Hayward services because the money is legally required to stay in our community and cannot be taken by the State, providing locally controlled funds for local services; and

WHEREAS, at its March 4, 2014 meeting, the City Council adopted a resolution calling an election to seek voter approval of a proposed general transactions and use (sales) tax (Measure C), as authorized by Revenue and Taxation Code section 7285.9; and

WHEREAS, at that meeting, the City Council concluded that all of the information presented indicated that, to obtain the revenue necessary to maintain and preserve service levels, the Council should call an election to ask the voters of the City to approve a twenty year local transactions and use (sales) tax, the revenue from which could be used to support general municipal services; and

WHEREAS, on the basis of the foregoing, the City Council determined that it was appropriate to place a measure regarding a general transactions and use (sales) tax before the voters at the June 3, 2014 general election; and

WHEREAS, the tax, if approved, would be imposed on the sale of tangible personal property and the storage, use, or other consumption of such property. The tax rate would be one-half of one percent (0.50%) (one-half cent for each dollar) of the sales price of the property. The tax revenue would be collected by the State Board of Equalization and remitted to the City. The tax would be in effect for twenty years, and would then expire automatically, unless extended by the voters. The tax shall be approved if the measure receives at least a simple majority of affirmative votes; and

WHEREAS, during the June 3, 2014 general election Measure C recei ved a majority of votes in favor of imposing the tax, which would be in place through December 31, 2024; and

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WHEREAS, the tax revenues have been used to fund capital projects such as construction of the new Downtown Hayward Public Library and adjacent Heritage Plaza, retrofit and improvement of five neighborhood fires stations, construction of new Fire Station No. 6 and regional Fire and Rescue Training Center, and six miles of street repairs amounting to the largest annual road project in City history; and

WHEREAS, the tax revenues have also been used to fund fourteen Hayward Police Department positions, including three patrol officers, a police lieutenant, a crime analyst, a fingerprint analyst, plus seven communications operators and one communications supervisor in the City’s 9-1-1 Dispatch Center, and nine groundskeeper and maintenance positions in the Maintenance Services Department; and

WHEREAS, the City continues to have ongoing spending needs and unfunded capital projects which would benefit from extension of the tax beyond 2034.

NOW, THEREFORE, THE PEOPLE OF THE CITY OF HAYWARD
ORDAINS AS FOLLOWS:

Section 1.

Article 19 of Chapter 8 of the Hayward Municipal Code is hereby amended to read as follows:

CHAPTER 8
ARTICLE 19 TRANSACTIONS AND USE (SALES) TAX

SEC. 8-19.100. Title.

This ordinance shall be known as the City of Hayward Transactions and Use (Sales) Tax Ordinance. The City of Hayward hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City.

SEC. 8-19.200 Operative Date. "Operative Date" means October 1, 2014.

SEC. 8-19.300. 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.

(a) To impose a retail transactions and use (sales) 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.

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(b) To adopt a retail transactions and use (sales) 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.

(c) To adopt a retail transactions and use (sales) 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.

(d) To adopt a retail transactions and use (sales) 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 (sales) taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.

SEC. 8-19.400. 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 (sales) 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.

SEC. 8-19.500. 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

0.50% 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 this ordinance.

SEC. 8-19.600. 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, [Ty pe here] [Ty pe here] [Ty pe here]

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.

SEC. 8-19.700. Use Tax Rate.

A transactions and use (sales) 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 0.50% 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.

SEC. 8-19.800. 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.

SEC. 8-19.900. 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 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.

(2) The result of that substitution would require action to be taken by or against this City of 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.

(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;
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(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.

(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.

SEC. 8-19.1000. 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.

SEC. 8-19.1100. Exemptions and Exclusions.

(a) There shall be excluded from the measure of the transactions and use (sales) 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 -Bums 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 such 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 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 [Ty pe here] [Ty pe here] [Ty pe here]

an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that 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 this ordinance.

(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 this ordinance.

(5) For the purpose 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.

(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 (sales) 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 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.

(3) If 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.

(4) 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.

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(5) 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 had the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

(6) Except as provided in subparagraph (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 any purchaser who registers or 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 consumption of which is subject to the use tax.

SEC. 8-19.1200. 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.

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SEC. 8-19.1300. 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 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.

SEC. 8-19.1400. Authorization and Limitation on Issuance of Bonds.

The City is hereby authorized to issue limited tax bonds, from time to time, provided that the maximum bonded indebtedness will not exceed the total amount of this retail transactions and use (sales) tax.

SEC. 8-19.1500. Annual Audit

The proceeds resulting from this transactions and use (sales) tax shall be deposited into the City's General Fund and become subject to the same independent annual audit requirements as other general fund revenue

SEC. 8-19.1600. Termination Date.

The authority to levy the tax imposed by this Article shall expire on December 31, 2054, unless re-enacted by a separate ordinance of the City Council following a majority vote of the electorate. The termination of the levy of taxes as provided herein shall not terminate the obligation to pay taxes levied on services used prior to such date. Taxes levied prior to December 31, 2054, shall remain a debt payable to the City. All provisions of this Article, except those related to the levy of taxes, shall continue in full force and effect after such date.

Section 2. Environmental Compliance.

The findings for this ordinance in compliance with the California Environmental Quality Act ("CEQA") are the same as those set forth in the City's Resolution No. calling for an election on this ordinance. The CEQA findings in Resolution No. are incorporated herein by reference.

Section 3. 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 4. Effective Date.

The Ordinance relates to the levying and collecting of the City transactions and use (sales) taxes and shall take effect immediately upon declaration of the election results by the City Council pursuant to Elections Code section 9217 and City Charter section 620(c).
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APPROVED by the following vote of the People of the City of Hayward on November 5 , 2024.

AYES:

NOES:

ADOPTED by Declaration of the vote at the November 5, 2024 election by the City Council of the City of Hayward on the day of 2024.

ATTEST: ______________________________________
City Clerk of the City of Hayward
APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

ATTACHMENT III

HAYWARD CITY COUNCIL

RESOLUTION NO. 24-_____

Introduced by Council Member _______________

RESOLUTION ESTABLISHING THE SCHEDULE AND POLICY PROVIDING FOR

THE FILING OF BALLOT ARGUMENTS FOR THE EXTENSION OF THE

TRANSACTIONS AND USE (SALES) TAX BALLOT MEAS URE AT THE NOVEMBER 5, 2024 GENERAL ELECTION

WHEREAS, the City Council of Hayward plans to submit a ballot measure to the voters at the November 5, 2024 Municipal Election; and

WHEREAS, it is necessary to establish a schedule and poli cy for the fi ling of ballot arguments.

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

SECTION 1. The Primary Argument filing period closes at noon, 12:00 p.m. on Monday, August 12, 2024. The Rebuttal Argument fil ing period closes at noon, 12:00 p.m. on Friday, August 16, 2024.

SECTION 2. The ten-day public review period for primary arguments closes at noon, 12:00 p.m. on August 2 2, 202 3, and the ten -day public review period for rebuttal arguments closes at noon, 12:00 p.m. on August 26, 2024.

SECTION 3. In accordance with Elections Code 9282 and 9285, primary arguments for or against ballot measures shall not exceed 300 words in length. Rebuttal arguments for or against ballot measures shall not exceed 250 w ords in length. Word count will be determined using the standards set forth in Elections Code Section 9.

SECTION 4. According to Elections Code 9287, if more than one argument is submitted, the City Clerk shall select the argument and shall give prefer ence, in the order named, to arguments of the following:

ATTACHMENT III

a) The legislative body, or member or members of the legislative body authorized by that body.
b) The individual voter or bona fide association of citizens, or combination of voters and associations, who are the bona fide sponsors or proponents of the measure,
c) Bona fide associations of citizens.
d) Individual voters who are eligible to vote on the measure.

SECTION 5. Each ballot argument must be accompanied by the printed name(s) and signature(s) of th e person or persons submitting it or, if submitted on behalf of an organization, the name of the organization and the printed name and signature of at least one of its principal officers who is the author of the argument. The Certification of the Author(s ) and Proponent(s) , in Exhibit A, must be submitted at the time the respective Primary Argument or Rebuttal Argument is filed. The names and titles of proponents will be printed exactly as they appear in Exhibit A.

Arguments received prior to the deadline are confidential until the deadline.

SECTION 6. No more than five signatures shall appear with any argument. In case any argument is signed by more than five individuals, the signature of the first five shall be printed. Authors must list the signors names on the argument in the order they are to be printed.

SECTION 7. Consent forms are required for persons and/or organizations listed as supporters in the text of the argument.

SECTION 8. The City Clerk, upon receipt of arguments and after the fi ling deadline, will transmit copies o f arguments to authors of opposing arguments who may then submit rebuttals within the established period.

SECTION 9. In accordance with Elections Code 9285, only the author whose primary argument has been selected b y the City Clerk may file a rebuttal argument or may authorize in writing another person or persons to prepare, submit, or sign the rebuttal argument.

SECTION 10. Rebuttal arguments shall be printed in the same manner as direct arguments. Each rebutta l argument shall immediately follow t he direct argument which it seeks to rebut.

ATTACHMENT III

IN COUNCIL, HAYWARD, CALIFORNIA , 2024.

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: _____________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

__________________________________________
City Attorney of the City of Hayward

OFFICE OF THE CITY CLERK T: 510.583.4400
777 B Street, Hayward, CA 94541 www.hayward-ca.gov

City of Hayward

GENERAL MUNICIPAL ELECTION
Tuesday, November 5, 2024

CERTIFICATION OF THE AUTHOR(S) AND PROPONENT(S)

SIGNATURE STATEMENT

PRIMARY ARGUMENT

Authors and proponents (signers) of arguments must be individual voters who are eligible to vote on the measure, or a bona fide association of citizens, or any combination of voters and associations at the time of signing the argument.

EC §9600 All arguments concerning measures filed pursuant to this division shall be accompanied by the following form statement, to be signed by each proponent and by each author, if different, of the argument:

The undersigned proponent(s) or author(s) of the Argument ____ In Favor
____ Against
the EXTENSION OF THE TRANSACTIONS AND USE (SALES) TAX at the General Municipal Election for the City of Hayward to be held on November 5, 2024, hereby state that this argument is true and correct to the best of their knowledge and belief.

Print Name Signature

Title (if any) to appear on Argument

Email Address

Residence Address City & Zip Code

Attachment IV

OFFICE OF THE CITY CLERK T: 510.583.4400
777 B Street, Hayward, CA 94541 www.hayward-ca.gov

City of Hayward

GENERAL MUNICIPAL ELECTION
Tuesday, November 5, 2024

CERTIFICATION OF THE AUTHOR(S) AND PROPONENT(S)

SIGNATURE STATEMENT

REBUTTAL ARGUMENT

Authors and proponents (signers) of arguments must be individual voters who are eligible to vote on the measure, or a bona fide association of citizens, or any combination of voters and associations at the time of signing the argument.

EC §9600 All arguments concerning measures filed pursuant to this division shall be accompanied by the following form statement, to be signed by each proponent and by each author, if different, of the argument:

The undersigned proponent(s) or author(s) of the Argument ____ In Favor
____ Against
the EXTENSION OF THE TRANSACTIONS AND USE (SALES) TAX at the General Municipal Election for the City of Hayward to be held on November 5, 2024, hereby state that this argument is true and correct to the best of his/her/their knowledge and belief.

Print Name Signature

Title (if any) to appear on Argument

Email Address

Residence Address City & Zip Code