Thursday, July 21, 2022
6:30 PM
City of Hercules
111 Civic Drive
Hercules, CA 94547
City Council
Mayor Dion Bailey
Vice Mayor Alexander Walker-Griffin
Council Member Dan Romero
Council Member Chris Kelley
Council Member Tiffany Grimsley
Dante Hall, City Manager
Patrick Tang, City Attorney
Lauren Berges, City Clerk
Meeting Agenda
SPECIAL MEETING In-Person In Council Chambers or
Zoom ID: 880 1173 2202 / Zoom Passcode: 269146
Zoom Phone Number: 1-669-444-9171
July 21, 2022City Council Meeting Agenda
I. SPECIAL MEETING - 6:30 P.M. CALL TO ORDER - ROLL CALL II. PLEDGE OF ALLEGIANCE
III. AGENDA ADDITIONS/DELETIONS
IV. PUBLIC COMMUNICATIONS
All public comments are recorded and become part of the public record. In accordance with Executive Order N-25-20 and guidance from the California Department of Public Health on gatherings, remote public participation is allowed as follows:
The public may log into the Zoom meeting (refer to agenda cover for Zoom login information) and provide their public comment (3 minute time limit). If attending in-person, please fill out a speaker card and provide to the City Clerk.
When the public comment period is open for the item you wish to speak on, use the "raise hand" feature in Zoom (or press *9 if connecting via phone audio only) at the time the Mayor calls for public comment. Please wait your turn and once you are brought into the meeting, state your name and city of residence for the record.
For additional alternatives to providing public comments please refer to the Notice of Important Instructions on how to Participate and Watch the Hercules City Council Meeting on the back pages of the agenda.
All public comments are allowed up to 3 minutes to relay their message or concern. A limit of 30 minutes will be devoted to taking public comment at this point in the agenda. If any speakers remain at the conclusion of the initial 30 minute period, time will be reserved at the conclusion of the meeting to take the remaining comments.
V. DISCUSSION AND/OR ACTION ITEMS
1. 22-236 Resolution Calling an Election on November 8, 2022 for Voters to Consider a Ballot Measure to Extend the Existing Utility Users Tax at the Current Rate of 8%, submittal of the Ordinance to the Voters, and Requesting the County to Consolidate this Election with the Statewide General Election.
UUT Staff Report - special meeting 220721-
Agenda report 220712 - UUT
Resolution 220712 - UUT
HMC Chapter 8 text ordinance revision - UUT - 220712
UUT - 220721 - Ballot Argument Designation - Attachment 2 Attachments:
VI. PUBLIC COMMUNICATIONS
This time is reserved for members of the public who were unavailable to attend the Public Communications period during Section IV of the meeting, or were unable to speak due to lack of time. The public speaker requirements specified in Section IV of this Agenda apply to this Section.
July 21, 2022City Council Meeting Agenda
VII. ADJOURNMENT
The next Regular Meeting of the City Council will be held on Tuesday, July 26, 2022, at 7:00p.m. in the Council Chambers.
Agendas are posted in accordance with Government Code Section 54954.2(a) or Section 54956.
Members of the public can view electronic agendas and staff reports by accessing the City website at www.ci.hercules.ca.us and can receive e-mail notification of agenda and staff report postings by signing up to receive an enotice from the City’s homepage. Agendas and staff reports may also be obtained by contacting the Administrative Services Department at (510) 799-8215 (Posted: July 19, 2022)
July 21, 2022City Council Meeting Agenda
INSTRUCTIONS ON HOW TO PARTICIPATE AND WATCH THE HERCULES CITY COUNCIL AND PLANNING
COMMISSION HYBRID MEETINGS
Attend in Person: Hercules City Council Chambers – 111 Civic Drive, Hercules, CA 94547 Attend via Zoom Teleconference: Details provided below and zoom webinar login, passcode and phone numbers provided on the agenda cover.
Please note: Updated COVID-19 safety protocols will be posted outside the City Council Chambers. Please review this information before entering the Council Chambers.
How to Submit Public Comments
In Person: Attend meeting at the Hercules City Council Chambers, fill out a public speaker card located on the side table and submit it to the City Clerk.
Via Zoom: Members of the public may submit a live remote public comment via Zoom video conferencing.
Download the Zoom mobile app from the Apple Appstore or Google Play. If you are using a desktop computer, you can test your connection to Zoom by clicking here or go to: https://www.zoom.us/join. Zoom also allows you to join by phone at +1-669-900-6833 or +1-929-205-6099 or +1-253-215-8782. • Speakers will be asked to provide their name and city of residence, although providing this information is not required for participation.
• Each speaker will be allowed up to 3 minutes to speak and provide comment. A limit of 30 minutes will be devoted to taking public comment during the first public comment period on the agenda. If any speaker comments have not been accommodated prior to the initial 30 minute period, time will be reserved at the conclusion of the meeting for the remaining public comments. • Speakers will be muted until their opportunity to provide public comment.
When the Mayor opens the comment period for the item you wish to speak on, please use the “raise hand” feature (or press *9 if connecting via telephone) which will alert staff that you have a comment to provide and press *6 to unmute.
Written Comments Submitted Electronically: All comments received before 3:00 p.m. the day of the meeting will be provided to the City Council prior to the meeting and posted to the City’s agenda website and located by clicking on the “meeting details” tab. Written comments received after 3:00 p.m. will be provided to City Council and posted to the agenda website the following day. Written comments will not be read aloud during the meeting. Email comments to [email protected]. Please indicate which item on the agenda you are commenting on in the subject line of your email.
Written comments submitted in person or via mail: Additional ways to provide your public comment is to either drop off your comment in person to the front desk receptionist located in the City Hall lobby or to mail your comment to City of Hercules, ATTN: City Clerk – Public Comment (Meeting Date), 111 Civic Drive, Hercules, CA 94547 in time to reach the City Clerk no later than 3:00 p.m. on the day of the meeting or you can submit your comment by telephone by calling (510) 799-8215 no later than 3:00 p.m. on the meeting date.
If you need assistance with public comment, please contact: Lauren Berges, City Clerk at [email protected] or by calling (510) 799-8215.
All public comments will become part of the official meeting record. The City cannot guarantee that its network and/or the website will not be uninterrupted. To ensure that the City Council receives your written comments, you are strongly encouraged to submit your comments in writing in advance of the meeting by 3:00 p.m. on the day of the Council or Commission meeting.
July 21, 2022City Council Meeting Agenda
OTHER WAYS TO WATCH THE MEETING
Live on Channel 28: City Council meetings will replay the following Thursday at 7:00 p.m. and Saturday at 1:00 p.m.
Planning Commission meetings will replay the following Wednesday at 7:00 p.m. and Saturday at 9:00 a.m.
Video Streamed Live on the City’s Website:
To view City Council and Planning Commission meeting videos online go to: Hercules Meeting Videos.
Instructions to view Live or On-Demand Videos from the City’s website:
1. Go to: Hercules Meeting Videos or https://hercules.legistar.com/calendar.aspx.
2. Locate the desired meeting and date.
3. Click the associated “Video” link (Video status is as follows):
Video = Video is available for on demand viewing.
In Progress = Video is available for viewing during live recording.
Not Available = Video is either unavailable or has not been recorded.
July 21, 2022City Council Meeting Agenda
THE HERCULES CITY COUNCIL ADHERES TO THE FOLLOWING POLICIES,
PROCEDURES AND REGULATIONS REGARDING CITY COUNCIL MEETINGS
1. SPECIAL ACCOMODATIONS: In compliance with the Americans with Disabilities Act, if you require special accommodations to participate at a City Council meeting, please contact the City Clerk at 510-799-8215 at least 48 hours prior to the meeting.
2. AGENDA ITEMS: Persons wishing to add an item to an agenda must submit the final written documentation 12 calendar days prior to the meeting. The City retains the discretion whether to add items to the agenda. Persons wishing to address the City Council otherwise may make comments during the Public Communication period of the meeting.
3. AGENDA POSTING: Agendas of regular City Council meetings are posted at least 72 hours prior to the meeting at City Hall, the Hercules Swim Center, Ohlone Child Care Center, Hercules Post Office, and on the City’s website (www.ci.hercules.ca.us),
4. PUBLIC COMMUNICATION: Persons who wish to address the City Council should complete the speaker form prior to the Council's consideration of the item on the agenda.
Anyone who wishes to address the Council on a topic that is not on the agenda and is relevant to the Council should complete the speaker form prior to the start of the meeting. Speakers will be called upon during the Public Communication portion of the meeting. In accordance with the Brown Act, the City Council may not take action on items not listed on the agenda. The Council may refer to staff any matters brought before them at this time and those matters may be placed on a future agenda.
In the interests of conducting an orderly and efficient meeting, speakers will be limited to three (3) minutes.
Anyone may also submit written comments at any time before or during the meeting.
5. CONSENT CALENDAR: All matters listed under Consent Calendar are considered to be routine and will be enacted by one motion. There will be no separate discussion of these items unless requested by a member of the Council or a member of the public prior to the time the City Council votes on the motion to adopt.
6. LEGAL CHALLENGES: If you challenge a decision of the City Council in court, you may be limited to raising only those issues you or someone else raised at the meeting or in written correspondence delivered at, or prior to, the meeting. Actions challenging City Council decisions shall be subject to the time limitations contained in Code of Civil Procedure Section 1094.6.
1 REPORT TO THE CITY COUNCIL
DATE: Special Meeting of July 21, 2022
TO: Mayor Bailey and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Patrick Tang, City Attorney
Ben Fay, Special Counsel
SUBJECT: Resolution Calling an Election on November 8, 2022, for Voters to Consider a Ballot Measure to Extend the Existing Utility Users Tax at the Current Rate of 8%, submittal of the Ordinance to the Voters, and Requesting the County to Consolidate this Election with the Statewide General Election.
RECOMMENDED ACTION: Consider adoption of a resolution placing an ordinance before the voters at the November 8, 2022 General Election to amend Title 8, Chapter 8 of the Hercules Municipal Code to extend the Utility Users Tax at the current rate of 8% until ended by the Voters or repealed by the City Council; requesting that the Contra Costa County Board of Supervisors consent to the consolidation of this election with the statewide General Election to be held on the same date; directing the Registrar of Vote rs to co nduct the election; providing for submittal of ballot arguments and rebuttals, and authorizing the City Attorney to file an impartial analysis.
FISCAL IMPACT OF RECOMMENDATION:
Continuation of the existing Utility Users Tax at the current 8% rate would provide essential funding necessary to continue basic service and staffing levels. If the UUT were allowed to expire without being continued, the loss of approximately $3.6 million a year in revenue would impair the City’s ability to provide minimal levels of service. Budget cuts that may include police and neighborhood patrols, street maintenance, parks, senior services, youth programs, and economic development would bring cause a decline in the quality of life Hercules residents currently enjoy.
BACKGROUND:
The Utility Users Tax will expire on January 1, 2025 unless the City Council approves placing a measure on the ballot and Hercules voters approve by a simple majority the con tinuation of the existing tax.
2 DISCUSSION:
At the July 12th Council meeting, after receiving public comment and after Council discussion, the Council voted 3-1 (Vice Mayor Walker-Griffin was absent from the meeting) to approve adoption of a resolution placing an ordinance before the voters at the November 8, 2022 General Election to extend the Utility Users Tax at the current rate of 8%. Pursuant to Hercules Municipal Code Sec. 8-8.408 and consistent with California Government Code Section 53724(b), the decision to place a tax measure on the ballot requires the affirmative vote of 2/3 of the Council. Meeting the 2/3 vote requirement on a five-member council means that four of five council members would have to vote in the affirmative to place the UUT continuation measure on the ballot. With a 3 to 1 vote in favor, the motion to place the measure on the ballot failed to meet the stricter majority vote requirements in the Municipal Code and under state law.
Following the vote on the UUT measure, and during the segment of the Council agenda allowing for the scheduling of future agenda items, the Council voted 4 -0 to schedule the matter for further consideration at an upcoming regular meeting, or in the alternative at a special meeting, when all five council members can be available to discuss the issue. It was determined that tonight was the best opportunity to convene a meeting where all five council members could be present.
According to City Clerk Lauren Berges, the last day to submit the matter to the County for inclusion on the November 8 th ballot would be August 12th, but staff would need several business days in advance of that date to finalize the required documentation.
Ballot Arguments. The draft UUT materials discussed on the evening of July 12th would authorize the Mayor to prepare and file ballot arguments in favor of the ballot measure , as well as rebuttal arguments.
Since the July 12th meeting, our consultants have clarified that the recommendation for Hercules is to use the prior language contained in previous successful UUT-related ballot measures. Provided with this staff report as Attachment 2 is the ballot argument language from the resolution presented at the July 12 th meeting, and the ballot argument language from prior ballot measures that is being recommended by our consultants. Staff concurs with our consultant’s recommendation to utilize the language previously used in prior Hercules measures.
ATTACHMENTS:
1. UUT Staff Report from July 12, 2022 Regular Council meeting.
2. Designation for Ballot Arguments- Currently Proposed and Prior Designation.
STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of July 12, 2022
TO: Mayor Bailey and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Patrick Tang, City Attorney
Ben Fay, Special Counsel
SUBJECT: Resolution Calling and Giving Notice of the Holding of an Election on November 8, 2022, for Voter Consideration of a Ballot Measure to Amend Title 8, Chapter 8 of the Hercules Municipal Code to Extend the Utility Users Tax at the Current Rate of 8% (that i s, with NO increase in the existing, voter -approved rate) Until Ended by the Voters or Repealed by the City Council; Ordering the Submittal of the Ordinance to the Voters at the Election; Requesting that the Contra Costa County Board of Supervisors Consent to the Consolidation of this Election with the Statewide General Election to be Held on the Same Date; Directing the Registrar of Voters to Conduct the Election; and Providing for Submittal of Ballot Arguments and Rebuttals and Authorizing the Filing of an Impartial Analysis.
RECOMMENDED ACTION(S)
Conduct a public hearing, consider adoption of a resolution calling and giving notice of the holding of an election on November 8, 2022 and ordering submittal of the ordinance to the voters at the election, of a Ballot Measure to amend Title 8, Chapter 8 of the Hercules Municipal Code to extend the Utility Users Tax at the current rate of 8% until ended by the Voters or repealed by the City Council; requesting that the Contra Costa County Board of Supervisors consent to the consolidation of this election with the statewide General Election to be held on the same date; directing the Registrar of Voters to conduct the election; and providing for submittal of ballot arguments and rebuttals and authorizing the filing of an impartial analysis.
COUNCIL OPTIONS:
1. Conduct a public hearing and adopt the Resolution placing the extension of the UUT on the November 8, 2022 election ballot; or
2. Conduct a public hearing, reject the Resolution, and provide Staff with direction.
BACKGROUND
The City Council has engaged in a series of discussions at regularly agendized council meetings regarding the potential for placing two tax measures on the November 8, 2022 ballot for voter approval. The first measure would be an extension of the existing Utility Users Tax (UUT), which if not extended by an affirmative vote of a majority of voters, will expire January 1, 2025. The second measure would be an increase in the Real Property Transfer Tax (RPTT) , which would necessitate becoming a charter city.
At the second public hearing for the Charter/RPTT measure held on June 14, 2022, t he Council directed that staff present for Council action the necessary documents required to place on the November 8, 2022 ballot both the UUT extension and Charter/RPTT tax measures. This Staff Report relates to the potential UUT measure; a separate report to Council has been agendized for tonight’s meeting regarding a potential Charter/RPTT ballot measure , to be presented following this item.
DISCUSSION
The City of Hercules enacted a Utility User s Tax (UUT) in 2004. The UUT was originally a 6% tax on utility services including but not limited to telephone, electricity, gas, water, cable and video. A UUT is a local funding measure commonly applied by California cities and counties on the consumption of utility services, as a local source of funding for services communities rely on.
The existing UUT is a general tax, meaning that it can be used for a variety of municipal services at the direction of the City Council. As a general tax, it requires simple majority approval by Hercules voters. A UUT is applied across a wide base of taxpayers, including property owners, renters, and businesses. It is a tax that is applied locally, and controlled at the local level, and cannot be taken by Sacramento. It is based on consumption; taxpayers pay based on their usage of the utility services covered under the UUT . The UUT is a stable revenue source that maintains a dependable local revenue stream. The tax is collected by the utility provider and remitted to the City. The UUT is set to expire January 1, 2025.
Pursuant to a June 4, 2013 special election, in order to assist the City in m aintaining long term fiscal stability with adequate reserves, Hercules voters approved a 2% increase to the original 6% UUT, for a total UUT of 8%. As with the original UUT, the 2% increase expires on January 1st of 2025.
According to Finance Director Gato, the City receives annually approximately $3. 6 million in revenue from the UUT. This comprises 20 percent of the City’s current budget. The UUT is vital to maintaining current levels of staffing and City services; if the UUT is not extended, significant and drastic cuts to the City’s budget would be required, which would impact staffing and the City’s ability to provide the level of services expected by residents.
The City has been advised by its longstanding revenue sustainability professional, The Lew Edwards Group (LEG) that a No Tax Increase UUT Renewal measure is viable, but only if it appears on the ballot itself, with NO other local revenue-related measure.
Through LEG subcontractor FM3 Research, the City’s longstanding public opinion research professional, two surveys were conducted this year to test the viability of th e UUT Renewal Measure. The first survey was conducted on January 3-17 of this year. In that study, the viability of the measure was at 66% for a simple majority renewal on the third ballot test for the sole placement of this measure only, on the ballot.
The second survey was conducted May 28th – June 5th of this year. Viability of the UUT Renewal dropped a full 13 points, to 53% on the last ballot test, a 13 point erosion. LEG has advised the City of its professional judgment that the existence of a potential Charter/RP TT Measure clearly affected the viability of the UUT. Under those circumstances the UUT Renewal no longer meets LEG’s criteria as being viable, as it is within—not above—the margin of error. Therefore, LEG’s recommendation of proceeding with the UUT Renewal as a viable measure is wholly contingent on no other revenue measures sponsored by the City being on the ballot simultaneous to that one.
Below are two slides from each of the two public presentations to the City Council earlier in the year and on June 14, 2022, by Curtis Below of FM3 Research. These slides show the difference between a sole test of the UUT Renewal as a stand -alone measure, and as tested when appearing on the ballot as one of two measures.
UUT Renewal Viability As a Stand-Alone Measure: Vote Progression
UUT Renewal Viability As a Measure in Conjunction with Charter/RPTT: Within MOE
Following the June 14th presentation, the City Council directed Staff to prepare a ballot measure that would extend the existing UUT at the current rate (no tax increase), until ended by the voters (or repealed by Council pursuant to existing municipal code provisions). The City Council directed Staff to return with the necessary actions to place a UUT extension measure on the ballot for the November 8, 2022 General Election. This report and agenda item implement Council’s directive.
In order to place a proposed UUT No Tax Increase Extension Ordinance on the ballot for the November 8, 2022 election, Staff has prepared the attached Resolution that does the following:
Calling and giving notice of the holding of an election on Tuesday, November 8, 2022, to consider the extension of the existing Utility Users Tax; Ordering the submittal of a measure extending the Utility User s Tax to the Voters at the Election;
Approving an Amended Ordinance extending the Utility User s Tax for submission to the Voters;
Requesting that the Contra Costa County Board of Supervisors Consent to the Consolidation of this Election with the Statewide General Election to be held on the same date; and
Directing the Registrar of Voters to conduct the election.
BALLOT QUESTION
The State Elections Code requires the ballot measure to be printed in the ballot pamphlet in the form of a “yes or no” ballot question of no more than 75 words. The ballot question must include a true and impartial statement of the nature of the ballot measure. The ballot question for City Council consideration is as follows:
CITY OF HERCULES NO TAX INCREASE/ FINANCIAL STABILITY
MEASURE. Shall an ordinance to maintain Hercu les’ financial stability and essential services, such as neighborhood police patrols; meeting local water quality health standards; retaining/ attracting local businesses, and other general community services, by renewing a voter-approved 8% utility users’ tax, generating approximately $3,600,000 annually until ended by voters or repealed by the City Council , with no tax increase, low -income exemptions, independent citizens’ oversight, annual audits, and funding that cannot be taken by Sacramento, be adopted?
Additional election details addressed by the proposed Resolution direct the preparation of the ballot impartial analysis, arguments and rebuttals:
1) Impartial Analysis: The State Elections Code provides for the City Council to direct the City Attorney to prepare an impartial analysis of no more than 500 words, showing the effect of the measure on existing law. This analysis must be submitted to the City Clerk by August 19, 2022.
2) Ballot Arguments: The State Elections Code allows the City Council to determine its interest in authoring an argument in favor of the ballot measure. Arguments of no more than 300 words each for and against the ballot measure can then be included in the Voter Sample Ballot. The primary arguments for and against the measur e must be submitted by August 24, 2022. Further, the Resolution would enable the Mayor to submit the written argument in favor of the proposed measure, and the argument may also be signed by members of the City Council or bona fide associations or by indiv idual voters who are eligible to vote on the Measure.
3) Ballot Rebuttals: In the event that an argument against the Measure is filed, the Resolution would authorize the Mayor to submit a rebuttal argument on behalf of the City Council, which may be signed by members of the City Council or bona fide associations or by individual voters who are eligible to vote on the measure. The deadline for the submittal of rebuttal arguments is August 29, 2022.
Pursuant to Hercules Municipal Code Sec. 8 -8.408 and consistent with California Government Code Section 53724(b), the decision to place a measure on the November 8th ballot to continue the UUT beyond the sunset date of January 1, 2025 requires the affirmative vote of 2/3 of the Council.
Meeting the 2/3 vote requirement on a five -member council means that four of five council members would have to vote in the affirmative to place the UUT continuation measure on the ballot.
According to City Clerk Lauren Berges, Hercules Election costs have been estimated by the County to be between $33,950 and $55,169. This range covers the two seats for council and the potential for up to 3 measures.
CONCLUSION
The proposal to extend the UUT beyond the January 1, 2025 expiration date does not increase the current 8% rate as previously adopted by Hercules voters. Eliminating the sunset provision would mean the UUT would remain in place at the existing, voter-approved 8% rate until ended by voters in the future, or repealed by the City Council, and could not be increased by Council without voter approval. The draft ordinance that is Exhibit A to the attached draft resolution removes the sunset provision and also removes language regarding the Finance Commission’s role in recommending whether the temporary 2% increase continues; this particular task would not be required if the sunset provision is eliminated.
Attachments:
1. Draft Resolution calling an election on November 8, 2022, for a ballot measure to extend the UUT at the current 8% rate , and a draft Ordinance amending the Hercules Municipal Code Title 8, Chapter 8 to extend the 8% UUT rate until ended by voters.
DRAFT 220706
RESOLUTION NO. ___-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES CALLING AND GIVING NOTICE OF THE HOLDING OF AN ELECTION ON NOVEMBER 8, 2022, FOR VOTER CONSIDERATION OF A BALLOT MEASURE TO AMEND TITLE 8, CHAPTER 8
OF THE HERCULES MUNICIPAL CODE TO EXTEND THE UTILITY USERS TAX AT THE
CURRENT RATE UNTIL ENDED BY THE VOTERS OR REPEALED BY THE CITY COUNCIL; ORDERING THE SUBMITTAL OF THE ORDINANCE TO THE VOTERS AT THE ELECTION; REQUESTING THAT THE CONTRA COSTA COUNTY BO ARD OF
SUPERVISORS CONSENT TO THE CONSOLIDATION OF THIS ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE SAME DATE; DIRECTING THE REGISTRAR OF VOTERS TO CONDUCT THE ELECTION; AND PROVIDING FOR
SUBMITTAL OF BALLOT ARGUMENTS AND REBUTTALS AND A UTHORIZING THE
FILING OF AN IMPARTIAL ANALYSIS
WHEREAS, in 2004, the City of Hercules established a Utility Users Tax (UUT); and WHEREAS, the UUT is paid by recipients of telecommunications, video, electric, and gas utility services, collected by the utilities as part of regular billing, and remitted to the City; and WHEREAS, the UUT will terminate on January 1, 2025, unless re-enacted by a majority vote of Hercules voters; and
WHEREAS, In 2013 and 2015, Hercules voters enacted Measure A (70.96% passage rate) and Measure C (72.52% passage rate) to update and extend the UUT, ensuring the City’s long -term fiscal sustainability and protecting core services residents rely on; and WHEREAS, Hercules is a place where people desire to live and raise famil ies and extending the existing, voter-approved UUT will maintain essential City services that make Hercules a safe, well-maintained place to live; and
WHEREAS, maintaining neighborhood police patrols and 9 -1-1 response times at a time when other parts of the Bay Area are struggling with rising crime has been consistently identified as a top priority for Hercules residents; and
WHEREAS, if the UUT is not renewed, the City will lose approximately $3.6 million annually, which is over 20% of the City's budget; and
WHEREAS, loss of the UUT would give the City no choice but to reduce basic city services just to balance its budget, jeopardizing police and neighborhood patrols, street maintenance, parks, senior services, youth programs, economic development, and other programs; and
WHEREAS, UUT funding has enabled the City of Hercules to maintain police services – otherwise, the City would be forced to seriously consider major cuts to the Hercules Police Department, impacting crime prevention and 911 response times; and
WHEREAS, the City wishes to prevent severe cuts to critical resident services in these challenging times; and
WHEREAS, extending voter -approved locally controlled funding at the current tax rate will maintain public safety, pothole repair and street maintenance, crime prevention, parks, and recreation programs and other city services with funding that cannot be taken by the State; and WHEREAS, voter -approved, locally controlled funding has helped maintain the City’s emergency reserves and fiscal stability; and
WHEREAS, by law, all funds from an extension of existing, voter -approved local funding must continue to stay in Hercules to maintain local services – no funds can be taken by Sacramento or the federal government; and
WHEREAS, all funds will continue to be subject to mandatory financial audits, and yearly reports to the community to ensure funds are spent as promised; and WHEREAS, the proposed UUT measure does not create a new tax or increase utility rates --it simply renews the existing UUT adopted twice by Hercules voters with NO increase in the current tax rate.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that:
1. The foregoing recitals are true and correct and hereby incorporated by reference.
2. Pursuant to California Constitution Article XIIIC, Section 2; Government Code section 53724; and Elections Code section 9222, the City Council of the City of Hercules hereby calls an election at which it shall submit to the qualified voters of the City of Hercules a measure that, if approved by a majority vote of the electorate , would extend the term of the UUT at the current rate, until ended by the voters or repealed by the City Council . The City Council hereby requests that the election be consolidated with the statewide election to be held on November 8, 2022. The City Council acknowledges that the consolidated election will be held and conducted in the manner prescribed in Election Code Section 10418.
3. The City Council does hereby submit for adoption by the qualified voters of the City of Hercules at the General Municipal Election of November 8, 2022, the following question:
CITY OF HERCULES NO TAX INCREASE/ FINANCIAL STABILITY
MEASURE. Shall an ordinance to maintain Hercules’ financial stability and essential services, such as neighborhood police patrols; meeting local water quality health standards; retaining/ attracting local businesses, and other general community services, by renewing a voter-approved 8% utility users tax, generating approximately $3,600,000 annually until ended by voters, with no tax increase, low -income exemptions, independent citizens’ oversight, annual audits, and funding that cannot be taken by Sacramento, be adopted?
YES NO
4. The full text of the proposed measure to be submitted to the voters is attached as Exhibit A (the “Measure”) hereto. The Measure specifies that the existing voter -approved UUT at the current 8 percent (8%) shall be extended until ended by the voters or repealed by the Cit y Council. If a simple majority of the qualified voters voting on the Measure vote in favor therefore, the Measure shall be deemed adopted and shall be in full force and effect ten (10) days after the date the vote is declared by the City Council of the Ci ty of Hercules. The City Council hereby approves the Measure, attached as Exhibit A, the form thereof, and its submission to the voters of Hercules at the November 8, 2022 election. This measure shall be designated by letter by the Contra Costa County Registrar of Voters. The full text of the Measure proposed to be adopted by the voters shall be available upon request to the Office of the City Clerk and on the City’s website.
5. The City Clerk is authorized, instructed, and directed to work with the Office of the Registrar of Voters as needed in order to properly and lawfully conduct the election. The ballots to be used in the election shall be in form and content as required b y law. The Office of the Registrar of Voters is authorized to canvass the returns of the general municipal election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.
6. The Board of Supervisors of Contra Costa County is requested to instruct the Office of the Registrar of Voters to provide such services as may be necessary for the holding of the consolidated election. The election shall be held in all respects as if there were only one (1) election. The City recognizes that the County will incur additional costs because of this consolidation and agrees to reimburse the County for those costs. The City Manager is hereby authorized and directed to expend the necessary funds to pay for the City’s cost of placing the Measure on the election ballot.
This request is made pursuant to California Elections Code sections 10002 and 10403.
7. a) In accordance with Elections Code sections 9282 and 9283, arguments submitted for or against the Measure shall not exceed three hundred (300) words in length, and shall be printed upon the same sheet of paper and mailed to each voter with the sample ballot for the election and may be signed by not more than five (5) persons.
b) In accordance with Elections Code section 9282, the following headings, as appropriate, shall precede the arguments’ wording, but shall not be counted in the three hundred (300) word maximum: “Argument Against Measure “ or “Argument In Favor Of Measure “ (the blank spaces being filled only with the letter or number, if any, designating the Measure). c In accordance with Elections Code section 9283, printed arguments submitted to voters in accordance with Section 9282 of the Elections Code shall be filed with th e City Clerk, accompanied by the printed name(s) and signature(s) of the author(s) submitting it or, if submitted on behalf of an organization, the name of the organization and the printed name and signature of at least one of its principal officers. Arguments are due in the office of the City Clerk prior to 5:00 p.m. on August 24, 2022.
d) The City Council hereby authorizes Mayor Dion Bailey to prepare and file a ballot argument in favor of the Ballot Measure set forth in this Resolution, which may be sig ned by members of the City Council, representatives of bona fide associations of citizens, and individual voters eligible to vote on the Measure. Members of the City Council who sign the ballot argument may use their titles. In accordance with Elections Co de section 9287, any council members authorized by the City Council to do so may sign the argument in favor of the Measure.
8. a) Pursuant to Elections Code section 9285, when the City Clerk has selected the arguments for and against the Measure, that 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 that it seeks to rebut.
b) Rebuttal arguments shall not exceed two hundred fifty (250) words and may be signed by not more than five (5) persons. However, only the first five (5) persons to sign will be printed with the Ballot Measure. The persons that sign the rebuttal arguments may be different persons than the persons that signed the direct arguments.
c) The last day for submittal of rebuttal arguments for or against the Measure shall be by 5:00 p.m. on August 29, 2022.
d) The City Council hereby authorizes Mayor Bailey to prepare and file a rebuttal argument in favor of the Ballot Measure set forth in this Resolution, which may be signed by members of the City Council, representatives of bona fide associations of citizens, and individual voters eligible to vote on the Measure, who may be different from the people who signed the argument in favor of the measure. Members of the City Council who sign the rebuttal argument may use their titles.
In accordance with Elections Code section 9287, any council members authorized by the City Council to do so may sign the rebuttal argument for the Measure.
9. In accordance with Elections Code section 9280, the City Attorney is directed to file with the City Clerk, by 5:00 p.m. on August 19, 2022, an impartial analysis of the Measure, not to exceed five hundred (500) words, showing the effect of the Measure on the existing law and the operation of the Measure.
10. The City Clerk is directed to file certified copies of this Resolution with the Board of Supervisors and the Registrar of Voters of Contra Costa County , together with the attached Measure. The City Clerk is hereby authorized and directed to take all steps necessary to place the Measure on the ballot and to cause a synopsis of the Measure attached as Exhibit A to be published once in a newspaper of general circulation in accordance w ith California Elections Code section 12111 and California Government Code section 6061. A copy of the Measure shall be made available to any voter upon request. The City Clerk is authorized and directed to give further additional notice of the Measure in the time, form, and manner required by law.
11. The jurisdictional boundaries of the City of Hercules have not changed since the last general municipal election.
12. 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”), based on the general rule set forth in CEQA Guidelines section 15061(b)(3) that CEQA applies only to projects which have the potential for causing a significant effect on the environment. This resolution places a measure on the ballot that, if approved, extends the term of the UUT at the current rate, until ended by the voters; thus, it can be said with certainty that there is no possibility that the Measure will have a significant effect on the environment.
13. This Resolution shall become effective immediately upon its passage and adoption. It is hereby certified that the foregoing Resolution No. _____, was duly introduced and duly adopted by the City Council of the City of Hercules at its regular meeting he ld on the ___ day of July 202 2, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED: _______________________
DION BAILEY, Mayor
ATTESTED: _______________________
LAUREN BERGES, City Clerk
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY OF HERCULES AMENDING TITLE 8, CHAPTER 8 OF
THE HERCULES MUNICIPAL CODE TO EXTEND THE UTILITY USERS TAX AT THE CURRENT RATE OF 8% UNTIL ENDED BY THE VOTERS OR REPEALED BY THE
CITY COUNCIL
THE PEOPLE OF THE CITY OF HERCULES DO ORDAIN AS FOLLOWS:
SECTION 1. Amendments to Municipal Code (deletions in strikethrough; additions in italics).
Sections 8-8.318, 8-8.401, 8-8.406, 8-8.407, 8-8.408, and 8-8.409 of the Hercules Municipal Code are hereby amended to read as follows:
Sec. 8-8.318 Sunset Termination of Tax.
This Chapter shall automatically sunset, and its provisions shall become ineffective, on January 1, 2025. (Ord. 475 § 1 (part), 2013: Ord. 395 § 1 (part), 2004. Formerly 8-8.320) The levy of taxes as provided in this Chapter shall remain in full force and effect until ended by the voters or repealed by the City Council.
Sec. 8-8.401 Purpose.
(a) The purpose of this Article is to continue the increase of two percent (2%) to the existing six percent (6%) utility users tax rate approved by the voters at the June 4, 2013, special election, for a total utility users tax rate of eight percent (8%), which eight percent (8%) rate shall be applicable from the effective date of this Article to all categories of utility services identified in this Chapter, including but not limited to telephone, electricity, gas, water, cable and video, until ended by the voters or repealed by the City Council. such time as the Finance Commission determines that the City has met its goal of achieving long term fiscal stability with adequate reserves, and the City Council approves by a two-thirds (2/3) vote to terminate the two percent (2%) increase pursuant to Section 8-8.409, after which the rate shall revert to six percent (6%), with said six percent (6%) rate to sunset on the date indicated in Section 8-8.318. (b) The continuation of the 2013 voter approved tax increase is pursuant to voter approval at the November 3, 2015, special election. (Ord. 489 § 1 (part), 2015: Ord. 481 § 2 (part), 2014: Ord. 475 § 1 (part), 2013)
Sec. 8-8.406 Duties.
(a) The Commission is charged with the following responsibilities: (1) reviewing all appropriations of revenues received by the City from the sales and use taxes imposed pursuant to the provisions of this Chapter to determine whether such funds are to be used as provided for in this Chapter and the voter approved measure that adopted this Chapter; (2) reviewing the audit prepared by an independent auditor retained by the City to perform the City’s Comprehensive Annual Financial Report to determine whether such funds have been spent as provided for in this Chapter and the voter approved measure; and (3) prepare and issue the Commission’s own annual report setting forth their findings in regard to the foregoing; and (4) determining when the City has met its goal of achieving long term financial stability with adequate financial reserves, and issuing a report to Council detailing such findings, pursuant to Section 8-8.409. (b) In order to preserve the integrity and independence of the oversight process, Commission members will not play a formal role in contracting, project management, construction, or any other aspect of the funding. In addition, the Commission is not charged with decision-making on spending priorities, construction schedules, project details, funding source decisions (e.g., leveraged funds, developer fees, etc.), financing plans, tax rate assumptions, or selection of consultants, design, and construction firms. (Ord. 489 § 1 (part), 2015: Ord. 481 § 2 (part), 2014:
Ord. 475 § 1 (part), 2013)
Sec. 8-8.407 Effective Date.
This Article relates to the continuation of an temporary increase of two percent (2%) to the City’s existing utility users tax rate, and is a valid and binding City tax upon passage and approval by a majority of the electorate of the City of Hercules. This Article shall be considered adopted upon the date that the vote is declared by the legislative body and shall go into effect ten (10) days after that date. (Ord. 489 § 1 (part), 2015: Ord. 481 § 2 (part), 2014: Ord. 475 § 1 (part), 2013) Sec. 8-8.408 Amendments.
The City Council of the City of Hercules may make amendments to this Chapter without approval of the voters of the City if the amendments do not affect the rate of tax imposed. The City Council may amend the rate of tax imposed herein (increase or decrease) or extend the term of the tax, only upon two-thirds (2/3) vote of the Council and with approval of the voters of the City under applicable codes. (Ord. 489 § 1 (part), 2015: Ord. 481 § 2 (part), 2014: Ord. 475 § 1 (part), 2013) Sec. 8-8.409 Procedure for Termination of Two Percent (2%) Increase.
This Article providing for an increase of two percent (2%) to the existing utility users tax rate shall remain in effect until ended by the voters or repealed by the City Council. January 1, 2025, pursuant to Section 8-8.318, or until such time as the Finance Commission, created pursuant to Title 2, Chapter 2, Article 6, determines that the City has met its goal of achieving long term financial stability with adequate financial reserves. Upon finding by a two-thirds (2/3) vote of the City Council that the Finance Commission has adequately determined that the City has achieved long term financial stability with adequate financial reserves, the City Council shall enact legislation to reduce the UUT rate to six percent (6%), effective no later than one (1) year from date of passage. Notwithstanding this Section, the Council retains the independent authority to repeal the utility users tax pursuant to Section 8-8.317.
SECTION 2. Effective Date. This Ordinance, if approved by a majority of the voters of the City of Her cules at the General Municipal Election of November 8, 2022, shall become effective ten (10) days after the declaration of the results of that election by the City Council of the City of Hercules, pursuant to Elections Code section 9217.
SECTION 3. Publication. Within fifteen (15) days after the passage of this Ordinance, the City Clerk shall cause this Ordinance or a summary thereof to be published or to be posted in at least three (3) public places in the City of Hercules in accordance with the requirements of California Government Code section 36933.
SECTION 4. Codification. Upon adoption of this Ordinance pursuant to the voter approval referenced above, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this Ordinance in the Hercules Municipal Code.
SECTION 5. City Council Amendments. The City Council of the City of Hercules may amend this Ordinance in any manner that does not increase the amount of tax any person would pay under this Chapter.
SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this Chapter is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Chapter. The City Council hereby declares that it would have passed the Ordinance codified in this Chapter, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of this Chapter would be subsequently declared invalid or unconstitutional.
SECTION 7. Execution. The Mayor is hereby authorized to attest to the adoption of the Ordinance by the voters of the City by signing where indicated below.
It is hereby certified that the foregoing Ordinance No. ___ was APPROVED by the following vote of the People of the City of Hercules on November 8, 2022:
YES:
NO:
It is hereby further certified that the foregoing Ordinance No. ___ was adopted by Declarat ion of the November 8, 2022 election results by the City Council of the City of Hercules on ___________, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
APPROVED: ATTESTED:
__________________ __________________
Dion Bailey, Mayor Lauren Berges, City Clerk
Attachment 2
July 12, 2022 UUT Ballot Argument Language (Excerpted):
NOTE: City’s Consultant recommends AGAINST express authorization of elected officials to file ballot measures.
7. d) The City Council hereby authorizes Mayor Dion Bailey to prepare and file a ballot argument in favor of the Ballot Measure set forth in this Resolution, which may be signed by members of the City Council, representatives of bona fide associations of citiz ens, and individual voters eligible to vote on the Measure.
Members of the City Council who sign the ballot argument may use their titles. In accordance with Elections Code section 9287, any council members authorized by the City Council to do so may sign the argument in favor of the Measure.
……
8. d) The City Council hereby authorizes Mayor Bailey to prepare and file a rebuttal argument in favor of the Ballot Measure set forth in this Resolution, which may be signed by members of the City Council, representatives of bona fide associations of citizens, and individual voters eligible to vote on the Measure, who may be different from the people who signed the argument in favor of the measure. Members of the City Council who sign the rebuttal argument may use their titles. In accordance with Elections Code section 9287, any council members authorized by the City Council to do so may sign the rebuttal argument for the Measure.
9. In accordance with Elections Code section 9280, the City Attorney is directed t o file with the City Clerk, by 5:00 p.m. on August 19, 2022, an impartial analysis of the Measure, not to exceed five hundred (500) words.
Prior Ballot Argument Language (Excerpted):
NOTE: City’s Consultant recommends adhering to the below prior successful UUT related language regarding ballot arguments as follows:
Section 4. The City Council hereby directs the City Attorney to prepare an impartial written analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on existing law and the operation of the measure. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments.
Section 5. The City Council hereby authorizes its members to file written arguments for or against the measure described above to this resolution. All written arguments filed by any person in favor or against the measure shall be accompanied by the names and signatures of the persons submitting the arguments as required by applicable law and any names, signatures and arguments may be filed until the time and date fixed by the City Clerk, after which no change may be submitted to the City Clerk unless permitted by law.