Reso. No. __-__
RESOLUTION NO. __ -__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA, RESCINDING RESOLUTION NO. 63 -24 AND THEREBY REMOVING FROM THE NOVEMBER 5, 2024 BALLOT A PROPOSED
BUSINESS LICENSE TAX ON OIL REFINING
WHEREAS , the City Council adopted Resolution No. 63-24 on June 18, 2024 to place a measure on the ballot for the November 5, 2024 election to allow voters of the City to impose a business license tax on oil refining in the City in addition to other taxes on that activity (“the ballot measure”); and
WHEREAS , Chevron Corporation alleges the ballot measure exceeds the City’s legal authority and an unincorporated association has sued to challenge the ballot label by which it is to be presented to the voters; and
WHEREAS , Chevron Corporation proposed an agreement by which it would commit $300M of settlement payments to the City and subsequently has agreed to $550M over ten (10) years to provide City general services if the City will agree to remove the ballot measure from the November ballot (“the Agreement”); and
WHEREAS, other provisions of the Agreement include that the City’s existing Measure U business license and utility taxes will be applied to Chevron in their existing form, existing litigation will be dismissed and Chevron will cooperate in any necessary audits at their expense; and
WHEREAS , the Agreement will achieve most of the purposes of the ballot measure allowing certainty of Chevron’s obligations to the City, benefitting both parties and allowing the City to pursue many public projects which it is unable to fund; and
WHEREAS , the Agreement restates the power of the City Council, and voters acting by initiative, to propose taxes on business activity in the City, even during the term, though a credit mechanism is created; and
WHEREAS, the parties agree the Agreement is fair, just and reasonable,
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richmond, as follows:
Section 1. The foregoing recitals are true and correct, and this Council so finds and determines.
Section 2. For the foregoing reasons, the City Council hereby rescinds Resolution No. 62-34.
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Section 3. The City Clerk is directed, and the Registrar of Voters is requested, to remove the ballot measure from the November 5, 2024 ballot and to take no further steps to pursue the proposal.
Section 4. The Mayor is authorized to inform the Registrar of Voters by letter of this request.
Section 5. This resolution shall take effect immediately upon its adoption.
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I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond at a special meeting thereof held August 14, 2024, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
_____ _________________________
CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:
________________
Mayor
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Approved as to form:
DAVE ALESHIRE___________
City Attorney
State of California }
County of Contra Costa :ss.
City of Richmond }
I certify that the foregoing is a true copy of Resolution No. __-__, finally passed and adopted by the Council of the City of Richmond at a special meeting held on August 13, 2024.
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Pamela Christina, Clerk of the City of Richmond