TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Philippe Eskandar, City Manager
DATE: July 8, 2026
SUBJECT: ADOPTION OF RESOLUTION NO. R-26-27 CERTIFYING
THE JUNE 2, 2026, ELECTION RESULTS, INCLUDING THE
VOTER’S APPROVAL OF ORDINANCE NO. O-26-1426;
ADOPTION OF RESOLUTIONS R-26-24 AND R-26-25
AUTHORIZING VARIOUS AGREEMENTS WITH THE
CALIFORNIA DEPARTMENT OF TAX AND FEE
ADMINISTRATION; APPROVE THE NECESSARY BUDGET
ADJUSTMENTS; AND APPROVE AMENDMENT NO. 1 WITH
HINDERLITER, DE, LLAMAS, AND ASSOCIATES (HDL).
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Engaged and Connected Residents
Efficient, Responsive, and Effective City Services
Safe Community
Well-Maintained Infrastructure
Fiscally Responsible and Transparent City Government
Attractive, Complementary Business District
Inviting and Relevant City Facilities
Beautiful, Preserved, Single-Family Neighborhoods
BACKGROUND
In February of this year, the City Council adopted Resolution No. R-26-04, including a Declaration of Fiscal Emergency, and as a part of that declaration, placed Measure S, a 1% District Transaction and Use Sales Tax on the June 2, 2026 Statewide Primary Election Ballot for consideration by voters. The results of the elections have been certified by the Registrar-Recorder/County Clerk of the County of Los Angeles, and must be adopted by the City Council Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
as Resolution No. R-26-27 and the certification of the results and Statement of Votes are attached to the resolution as “Exhibit A.”
DISCUSSION
There were 9,251 registered voters in the City of San Marino for this year’s election. The results were certified by the Registrar-Recorder/County Clerk of the County of Los Angeles on June 26, 2026, and are considered final and are now being forwarded to the City Council for approval. The number of ballots cast in the election was 4,168, which is a 45% voter turnout.
The count reflects the total number of ballots cast by the City’s electorate either by vote by mail or at physical polling locations. The final results of the votes cast for Measure S reflect that 2,545 votes were cast in support of Measure S, and 1,381 votes were cast in opposition to Measure S. The measure required a majority vote in favor to pass. The votes in favor of the measure totaled 64.82%; therefore, Measure S was approved.
In order for the City to receive revenue from Measure S, the City must enter into a variety of agreements with the California Department of Tax and Fee Administration (CDTFA) for the administration and implementation the City’s Transaction and Use Tax (TUT) Ordinance.
CDTFA requires the approval of the two resolutions listed below:
1. Resolution R-26-24, authorizing the City Manager to execute agreements with the California Department of Tax and Fee Administration for implementation of a Local Transaction and Use Tax;
2. Resolution R-26-25, authorizing Examination of Sales or Transaction and Use Taxes Records. This resolution authorizes the City Manager and other employees designated by the City Manager, and the City’s sales tax consultant, Hinderliter, de Llamas, and Associates (HDL), access to confidential tax data.
The City currently contracts with HDL for sales tax services related to Bradley Burns sales tax. Staff is recommending the approval of amendment No. 1 to the agreement to add the Transaction and Use Tax services.
Executed copies of the proposed resolutions and agreements will be provided to the CDTFA in time for the City’s TUT to have an effective date of October 1, 2026.
FISCAL IMPACT & PROCUREMENT REVIEW
There is no fiscal impact to certifying the election.
Preparatory Costs: The City must reimburse CDTFA for the cost of preparatory services for the implementation of Measure S. The exact costs are not known at this time but shall not exceed $175,000 per California Revenue and Taxation Code section 7272. Since the actual amount of the invoice is unknown at this time, staff is recommending a FY 2026-27 budget adjustment for the full amount of $175,000 to Account # 101-08-4150-0000-Other Contract Services. A memo from CDTFA explaining the calculation of preparatory costs and their variability is attached to this report as Attachment
10. Ongoing Administration Costs: Ongoing administration costs will be deducted from the taxes collected by CDTFA, as prescribed by law (Rev. & Tax Code 7204.3 and 7273).
HDL Amendment No. 1: The first amendment with HDL has a monthly fee of $300 billed quarterly for the transaction district tax reports and quarterly sales tax analyses. Staff is recommending a FY 2026-27 budget adjustment to Account # 101-11-4150-0000 Other Contract Services in the amount of $3,600.
TUT FY 2026-27 Revenue: The City’s consultant, HDL, provided the City with an annual TUT revenue estimate of $1,651,000. Since the Transaction & Use tax becomes operative on October 1, 2026, the City is expected to receive revenue for only three (3) quarters. Using this annual estimate, staff is recommending a FY 2026-27 budget adjustment to Account #101-00- 3030-0001 Transaction & Use Tax in the amount of $1,238,250 (3 quarters worth of collections).
This was an initial revenue estimate provided by HDL. As actual receipts become available, HDL will continue to monitor collections and update the revenue forecast. Staff will review any updated projections and propose any necessary budget adjustments during the mid-year process.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the City Council (1) accept the official canvass of the Special Municipal Election held on June 2, 2026, and adopt Resolution No. R- 26-27 declaring the results, including the voter’s approval of Ordinance No.
O-26-1426; (2) adopt Resolution R-26-24, authorizing the City Manager to execute agreements with the California Department of Tax and Fee Administration for implementation of a Local Transaction and Use Tax (3) adopt Resolution R-26-25, authorizing Examination of Sales or Transaction and Use Taxes Records (4) approve Amendment No. 1 to the agreement with Hinderliter de Llamas and Associates (HDL); and (5) approval of budget adjustments as indicated in the fiscal impact section. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to (1) accept the official canvass of the Special Municipal Election held on June 2, 2026, and adopt Resolution No. R-26-27 declaring the results thereof, including the voter’s approval of Ordinance No. O-26-1426; (2) adopt Resolution R-26-24; (3) adopt Resolution R-26-25; (4) approve Amendment No. 1 with Hinderliter de Llamas and Associates (HDL); and (5) approve the budget adjustments as indicated in the report.”
ATTACHMENTS
1. Resolution No. R-26-27
2. Exhibit A - County Certification of Results and Statement of Votes
3. Resolution R-26-24 authorizing City Manager to execute agreements with the California Department of Tax and Fee Administration for implementation of a Local Transaction and Use Tax
4. Exhibit A to Resolution R-26-24
5. Exhibit B to Resolution R-26-24
6. Resolution R-26-25 authorizing Examination of Sales or Transaction and Use Taxes Records
7. Amendment No. 1 to Agreement for Sales and Use Tax and Transaction and Use Tax Services with Hinderliter de Llamas and Associates (HDL)
8. Resolution R-26-04
9. Agreement with Hinderliter de Llamas and Associates (HDL)
10. CDTFA Preparatory Cost and Administrative Cost Memo
11. Ordinance No. O-26-1426