Agenda packet — San Ramon City Council, July 9, 2024

CITY COUNCIL AGENDA
July 9, 2024

WE PROVIDE EFFICIENT DELIVERY OF QUALITY PUBLIC SERVICES THAT ARE

ESSENTIAL TO THOSE WHO LIVE AND WORK IN SAN RAMON
David E. Hudson, Mayor • Scott Perkins, Vice Mayor
Mark Armstrong, Councilmember • Marisol Rubio, Councilmember • Sridhar Verose, Councilmember City Hall
7000 Bollinger Canyon Road

REGULAR MEETING AND
CLOSED SESSION – 7:00 PM
Agenda Questions: Please contact the City Clerk (925) 973-2539 or [email protected] Please refer to the end of the agenda to review options for participation in the meeting.

Unless stated otherwise on the agenda, every item on the agenda is exempt from CEQA Guidelines Sections 15060(c), 15061(b)(3), 15273, 15378, 15301, 15323 and/or Public Resources Code Section 21065.

1. CALL TO ORDER/ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. ANNOUNCEMENTS

3.1 Changes and Additions to the Agenda

3.2 If you wish to speak under Public Comment or regarding an agenda item please fill out a speaker card located in the back of the room and submit it to the City Clerk.

4. PUBLIC COMMENT
Members of the audience are encouraged to address the City Council on any non-agenda item relating to the business of the City Council. Comments are limited to three (3) minutes, or less time if a large number of speakers are anticipated. A speaker may not allocate their time to another speaker. All remarks shall be addressed to the City Council.

Comments from the public on non-agenda items may also be submitted by email to [email protected]. Comments received by email will not be read aloud; however, they will be forwarded to the Council for their consideration. If you wish to present your comments to the public, you may do so in-person during this Public Comment period. No Council action can be taken at this meeting on issues raised during public comment. 2 City Council Meeting – July 9, 2024
During public comment, members of the public are permitted to address the City Council only on the following:
 Any non-agenda item relating to the business of the City Council.  Items that are on the Consent Calendar, including requests to pull an item from the consent calendar and the reason why you wish to pull the item or items. Please note that the decision to remove the item from the Consent Calendar is strictly at the discretion of the City Council.
 Requests for Future Agenda Items.
 Special Presentation Items under Section 6 of tonight’s Agenda.  Items that are not on the agenda and are within the City Council’s jurisdiction.

5. CONSENT CALENDAR
Consent Calendar items are considered routine and are acted upon by the City Council with a single action. Members of the audience wishing to provide public input may request (by email to the City Clerk or under Item 4 Public Comment) that the City Council remove the item from the Consent Calendar. Members of the public may request that items be removed from the Consent Calendar, however, the decision to remove the item is solely at the discretion of the City Council.

With respect to the approval of resolutions and ordinances, the reading of the title thereto shall be deemed a motion to waive a reading of the complete resolution or ordinance and unless there is a request by a Council member that the resolution or ordinance be read in full, further reading of the resolution or ordinance shall be deemed waived by unanimous consent of the Council.

5.1 Minutes of the City Council - Regular Meeting - Jun 25, 2024 Recommendation: Accept Minutes

5.2 Resolution No. 2024-082 - Accepting Building and Safety Services Division Report for Consideration and Setting a Public Hearing on the Statement of Expenses for July 23, 2024 at the Regular City Council Meeting Recommendation: Approve Resolution No. 2024-082

5.3 Resolution No. 2024-083 - Authorizing the City Manager to Sign Exhibit C – Lease Supplement No. 12 to the San Ramon Library Lease Agreement Between the City of San Ramon and Contra Costa County for the Operation of the San Ramon Library and Approve the Amount of $128,347 for July 1, 2024 – June 30, 2025
Recommendation: Approve Resolution No. 2024-083

5.4 Resolution No. 2024-084 - Authorizing the Mayor to Execute an Agreement with Flock Safety Authorizing a Statement of Work for the Equipment, Installation, Software, and Licensing Fees in an amount not to exceed $851,500 and Ratifying All Work Completed Without the Benefit of an Agreement Between May 22, 2023 and the Execution of the New Agreement
Recommendation: Approve Resolution No. 2024-084

6. SPECIAL PRESENTATIONS

6.1 Proclamation Honoring Maria Fierner upon her retirement. Introduction by City Manager Steven Spedowfski. Presentation by the City Council. 3 City Council Meeting – July 9, 2024

7. DEFERRED CONSENT ITEMS

8. UNFINISHED BUSINESS

9. NEW BUSINESS

9.1 Review and Approve Draft Sales Tax Ballot Measure Documents Recommendation: Provide Direction on Sales Tax Ballot Measure Documents Staff Report by Scott Koll, Deputy City Manager

10. CITY MANAGER'S AND CITY COUNCIL MEMBERS' COMMENTS /

MATTERS INITIATED

11. CLOSED SESSION

11.1 Convene to Closed Session pursuant to Govt. Code §54957.6 (Conference with Labor Negotiators) for City Council to meet with City Negotiators: Steven Spedowfski, City Manager, and Kelly M. Tuffo, Liebert Cassidy Whitmore, concerning Labor Negotiations with the San Ramon Police Officers’ Association and Unrepresented Employees: Police Chief, Police Captain, Police Lieutenant

11.2 Report on Closed Session

12. ADJOURNMENT
I hereby certify the agenda was posted 72 hours before the noted meeting. This agenda is posted in accordance with Government Code Section 54954.2(a).

Dated: July 3, 2024
4 City Council Meeting – July 9, 2024
HOW TO VIEW OR PARTICIPATE IN THE MEETING:

The public is invited to participate in the meeting using any of the following methods:

IN-PERSON
Members of the public can provide in-person comments at the meeting. To make a request for disability-related accommodation to participate in the meeting, please contact the City Clerk’s Office 48 hours in advance of the meeting.

WRITTEN COMMUNICATION BY EMAIL
Public comments may be submitted via e-mail to [email protected]. Any public comments received up until two (2) hours prior to the scheduled start time of the meeting will be distributed to the City Council via e-mail, provided at the meeting in the red binder, and posted online at https://www.sanramon.ca.gov/public_comment.

Written comments received after the cut-off time will be provided to the City Council the day following the meeting.

Please include “Public Comment” in the subject line. In the body of the email please include your name and the item you wish to comment on. Written public comment will not be read aloud during the meeting.

TO VIEW OR LISTEN ONLY
As a courtesy and technology permitting, the public will have the opportunity to view the meeting via one-way feed by the options below. However, the City cannot guarantee that the public’s remote access to any meeting will be uninterrupted, and technical difficulties may occur from time to time. In those instances, so long as the public may still attend the meeting in person, the meeting will continue. Members of the public desiring to provide comments as a part of the meeting are encouraged to either submit written comments prior to the meeting or to attend the meeting in person.
a. Zoom: https://cityofsanramon.zoom.us/j/98242486562
Webinar ID: 982 4248 6562
b. Zoom Phone Numbers: +1 (669) 900-6833
c. The City’s YouTube Channel: www.sanramon.ca.gov/YouTube Regular City Council meetings are broadcast on Contra Costa Television (CCTV) (Channel 27) on Wednesdays at 7:00 p.m. and Thursdays at 1:00 p.m. immediately following the meeting. Regular City Council meetings are also broadcast on AT&T U-Verse (Channel 99).

ATTENDEE CONDUCT
There will be zero tolerance for any person addressing the Council making profane, offensive and disruptive remarks, or engaging in loud, boisterous, or other disorderly conduct, that disrupts the orderly conduct of the public meeting.

Specifically, it is important for all speakers to adhere to the following guidelines for participation in this meeting:
a. No profanity or obscenity.
b. Refrain from personal threats or attacks.
c. Refrain from hateful epithets and demeaning language based on any person’s race, religion, sexual orientation, ethnicity, gender, or disability.
d. Respect all people that are present or watching.

At the discretion of the Mayor, a speaker may forfeit speaking time for any of the following reasons:
a. Exceeding the allotted time to speak;
b. Yelling, screaming, or other behavior that renders this Council unable to continue the meeting; c. Excessive profanity or slander;
d. Specific threats or “fighting words” that incite violence; or e. Speech that is outside the subject matter jurisdiction of the Council or the specific agenda item in which you are speaking.

While the City of San Ramon ensures the First Amendment rights of its citizens, we do not accept nor endorse any offensive or hateful comments made during our meetings. The City of San Ramon celebrates the diversity of our community, and we strive to be a welcoming and open community for all.

MINUTES OF THE

CITY OF SAN RAMON

CITY COUNCIL MEETING
June 25, 2024

1. CALL TO ORDER/ROLL CALL
The meeting was called to order at 7:00 p.m.

Also in attendance: City Manager Steven Spedowfski, Deputy City Manager Scott Koll, City Attorney Martin Lysons, Finance Division Manager Candace Daniels, and Deputy City Clerk Joan Snashall.

2. PLEDGE OF ALLEGIANCE

3. ANNOUNCEMENTS

3.1 Changes and Additions to the Agenda
The Deputy City Clerk announced that item 5.3 was amended on a revised agenda, and items 5.7 and 5.10 were postponed to a future City Council meeting.

3.2 If you wish to speak under Public Comment or regarding an agenda item please fill out a speaker card located in the back of the room and submit it to the City Clerk.

4. PUBLIC COMMENT
Public comment was received from Greg Carr.

Cm. Verose's motion to approve the consent calendar items 5.1 through 5.12, with item

5.3 as amended, and items 5.7 and 5.10 postponed to a future City Council meeting, was seconded by Cm. Rubio. The motion passes 5-0-0-0.

Attendee Name Title Status
Dave Hudson Mayor Present
Scott Perkins Vice Mayor Present
Mark Armstrong Councilmember Present
Sridhar Verose Councilmember Present
Marisol Rubio Councilmember Present

5.1 Packet Pg. 6
Minutes Acceptance: Minutes of Jun 25, 2024 7:00 PM (CONSENT CALENDAR) 2 City Council Meeting – June 25, 2024
RESULT: ADOPTED [UNANIMOUS]
MOVER: Sridhar Verose, Councilmember
SECONDER: Marisol Rubio, Councilmember
AYES: Hudson, Perkins, Armstrong, Verose, Rubio

5.1 City Council - Regular Meeting - Jun 11, 2024 7:00 PM Recommendation: Approve Minutes

5.2 Register of Demands as Presented by the City Treasurer (Period Ending May 31, 2024)
Recommendation: Approve Register of Demands

5.3 Resolution No. 2024-081 - Approval of the Proposed FY 2024-25 Statement of Investment Policy
Recommendation: Approve Resolution No. 2024-081

5.4 Resolution No. 2024-071 - Requesting and Consenting to Consolidation of Elections and Setting Specifications of the Election Order for the November 5, 2024 Municipal Election
Recommendation: Approve Resolution No. 2024-071

5.5 Resolution No. 2024-072 - Authorizing the Mayor to Execute a One-Year Revenue Sharing Agreement for Tennis Instruction with Akshay Arora (Dba Arora Tennis) with Projected Payments Not to Exceed $362,230 Recommendation: Approve Resolution No. 2024-072

5.6 Resolution No. 2024-073 - Authorizing the Mayor to Execute a One-Year Revenue Sharing Agreement for Tennis Instruction with Joyce Bonasera (Dba Bonasera Tennis) with Projected Payments Not to Exceed $286,110 Recommendation: Approve Resolution No. 2024-073

5.7 Resolution No. 2024-074 - Authorizing the City Manager to Sign Exhibit C – Lease Supplement No. 12 to the San Ramon Library Lease Agreement Between the City of San Ramon and Contra Costa County for the Operation of the San Ramon Library and Approve the Amount of $128,347 for July 1, 2024 – June 30, 2025
Recommendation: Approve Resolution No. 2024-074

5.8 Resolution No. 2024-075 - Authorizing the City Manager to Sign Exhibit a – Lease Supplement No. 5 to the Dougherty Station Library Lease and Services Agreement Between the City of San Ramon and Contra Costa County for the Operation of the Dougherty Station Library and Approve an Amount of $76,407.00 for July 1, 2024 – June 30, 2025

5.1 Packet Pg. 7
Minutes Acceptance: Minutes of Jun 25, 2024 7:00 PM (CONSENT CALENDAR) 3 City Council Meeting – June 25, 2024
Recommendation: Approve Resolution No. 2024-075

5.9 Resolution No. 2024-076 - Authorizing the Mayor to Execute Amendment No. 3 to the Agreement (C2021-048) with RydeTrans for Senior Citizens’ Transportation Services, Authorizing a Time Extension to June 30, 2025, and Authorizing Additional Funds of $16,789 for a Cumulative Four Year Total Not to Exceed $197,469
Recommendation: Approve Resolution No. 2024-076

5.10 Resolution No. 2024-077 - Authorizing the Mayor to Execute the Master Services and Purchasing Agreement with Flock Safety and Authorizing a Statement of Work for the Equipment, Software, Licensing, and Installation, for an Amount Not to Exceed $851,500
Recommendation: Approve Resolution No. 2024-077

5.11 Resolution No. 2024-078 - Authorizing the Mayor to Execute an Agreement with McKim Corporation for Construction of the Pavement Management 2024 and Pavement Management 2025 Projects (CIP 000013 and CIP 000015) in an Amount Not to Exceed $1,990,000
Recommendation: Approve Resolution No. 2024-078

5.12 Resolution No. 2024-079 - Establishing the Annual Gann Appropriations Limit for the Community Facilities District (CFD) No. 2014-1 for Fiscal Year 2024-25 Recommendation: Approve Resolution No. 2024-079

6. SPECIAL PRESENTATIONS

6.1 Proclamation Declaring June 2024 as Alzheimer’s & Brain Awareness Month.

Presentation to Maya Geurtsen, Director, Walk to End Alzheimer’s, Alzheimer’s Association.

Cm. Rubio presented the proclamation.

6.2 Introduction of Deputy Chief Jonas Aguiar by Fire Chief Paige Meyer.

Chief Meyer introduced Deputy Chief Aguiar as the new district representative for San Ramon.

7. DEFERRED CONSENT ITEMS

8. UNFINISHED BUSINESS

8.1 Resolution No. 2024-080 - Adopting the Fiscal Year 2024/25 Operating and Capital Budget, Establishing an Appropriations Limit, and Authorizing Carryover Project Appropriations
Recommendation: Approve Resolution No. 2024-080

5.1 Packet Pg. 8
Minutes Acceptance: Minutes of Jun 25, 2024 7:00 PM (CONSENT CALENDAR) 4 City Council Meeting – June 25, 2024
Introduction by Scott Koll, Deputy City Manager. Presentation by Candace Daniels, Finance Manager.

Mayor Hudson opened public comment. Public comment was received from Greg Carr.

Mayor Hudson closed public comment.

Vice Mayor Perkins' motion to adopt the Fiscal Year 2024/25 Operating and Capital Budget, establishing an appropriations limit, and authorizing carryover project appropriations, was seconded by Cm. Verose. The motion passed 5-0-0-0.

RESULT: APPROVED [UNANIMOUS]
MOVER: Scott Perkins, Vice Mayor
SECONDER: Sridhar Verose, Councilmember
AYES: Hudson, Perkins, Armstrong, Verose, Rubio

9. NEW BUSINESS

9.1 Sales Tax Revenue Measure Field Poll Presentation
Recommendation: Receive Report and Provide Direction on Sales Tax Ballot Measure
Introduction by Scott Koll, Deputy City Manager. Presentation by Jessica PolskySanchez, Principal EMC Research.

Mayor Hudson opened public comment. Public comment was received from Garry Chaban, Robert Bickel, Kyle Levy, Rob Maser, Greg Carr, Robert Downum, JoAnne Barron, and Bill Clarkson. Written public comment was received from Jim Blickenstaff.

Vice Mayor Perkins' motion for staff to come back to the Council with a sales tax measure of 1% and a ten year sunset, and include language of citizens oversight, was seconded by Cm. Rubio. The motion passes 5-0-0-0.

RESULT: APPROVED [UNANIMOUS]
MOVER: Scott Perkins, Vice Mayor
SECONDER: Marisol Rubio, Councilmember
AYES: Hudson, Perkins, Armstrong, Verose, Rubio

10. CITY MANAGER'S AND CITY COUNCIL MEMBERS' COMMENTS /

MATTERS INITIATED
The Council requested staff bring a proclamation on Childhood Cancer Awareness to the first meeting in September.

11. ADJOURNMENT
The meeting was adjourned at 9:27 p.m.

5.1 Packet Pg. 9
Minutes Acceptance: Minutes of Jun 25, 2024 7:00 PM (CONSENT CALENDAR)

CITY COUNCIL STAFF REPORT
DATE: July 9, 2024
TO: City Council/City Manager
FROM: Debbie Chamberlain, Community Development Director By: Vance Phillips, Chief Building Official
SUBJECT: RESOLUTION NO. 2024-082 - Accepting Building and Safety Services Division Report for Consideration and Setting a Public Hearing on the Statement of Expenses for July 23, 2024 at the Regular City Council Meeting

RECOMMENDED ACTION
Staff recommends the City Council receive the staff report and approve the resolution accepting Building and Safety Services Division report for consideration and setting a hearing on the Statement of Expenses for the July 23, 2024, City Council meeting.

BACKGROUND/DISCUSSION
Pursuant to Municipal Code Title B, Division B6, Chapter VI, Article 3-Abatement of Nuisances by City-Special Assessment, Building and Safety Services staff began the process to collect abatement costs, unpaid fines, and fees.

On June 5, 2024, property owners were notified of the intent to levy a special assessment on their property by way of City Council Resolution. The notice included the property address, assessor parcel number, the case number, the amount due, the due date, and the intent to hold a public hearing.

Prior to beginning the process to collect abatement costs and unpaid fines, each property owner was issued the appropriate legal notices and afforded the opportunity to appeal the nuisance or violation and the unpaid fines.

Each property owner listed on the Building and Safety Services’ Report has received all required notices and has been afforded an opportunity for an appeal hearing. None of the listed owners have paid the abatement costs or fines.

Exhibit 1 to the Resolution specifies for each subject property the itemized and total cost of the abatement, a description of the property that accrued the abatement costs, and the names and addresses of the persons entitled to notice.

The Building and Safety Services Division has filed with the City Clerk the attached Report to

5.2 Packet Pg. 10
place on the agenda for the City Council’s consideration and to request that the City Council set the hearing on the statement of expenses for the July 23, 2024, regular City Council Meeting.

FISCAL ANALYSIS
The Building and Safety Services Division has listed the cost of abatement, and fines and fees due for each property in the attached exhibit. The costs are actual cost paid to remove hazards or to abate violations and/or fines or fees listed in the City Council Fees Resolution adopted each year.

STEPS FOLLOWING APPROVAL
The City Clerk shall send out notices of the hearing by certified mail to those persons(s) entitled to notice as specified by the Building and Safety Services Division. The City Council meeting of July 23, 2024, will include the hearing on the statement of expenses and will serve as the time to consider the statement and any protest and objection to the expenses. Furthermore, at that time, the City Council may revise, correct, or modify the statement as it sees fit and will confirm the statement, as adjusted, by resolution.

ATTACHMENT
Exhibit 1 - Assessment Report--List and Itemized Abatement Costs

5.2 Packet Pg. 11
RESOLUTION NO. 2024-082

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAMON

ACCEPTING BUILDING AND SAFETY SERVICES DIVISION REPORT FOR

CONSIDERATION AND SETTING A PUBLIC HEARING ON THE STATEMENT OF EXPENSES FOR JULY 23, 2024 AT THE REGULAR CITY COUNCIL MEETING WHEREAS, the Building and Safety Services Division prepared and filed a report (Exhibit 1) identifying subject properties that accrued abatement costs with the City Clerk; and WHEREAS, on June 5, 2024, the Building and Safety Services Division notified specific property owners of the intent to levy a special assessment on their property by way of City Council Resolution; and
WHEREAS, the City Clerk presented the report received from Building and Safety Services Division to the City Council by placing it on the July 9, 2024, City Council meeting agenda; and
WHEREAS, on July 9, 2024, the City Council was asked to accept the Building and Safety Services Division Report for consideration and set the date, time, and place for a hearing on the statement of expenses.

NOW, THEREFORE BE IT RESOLVED, that the City Council accepts Building and Safety Services Division Report for consideration and sets the public hearing on the statement of expenses for July 23, 2024, at the regular City Council Meeting.

PASSED, APPROVED AND ADOPTED at the meeting of July 9, 2024, by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________
David E. Hudson, Mayor
ATTEST:
__________________________
Christina Franco, City Clerk

5.2 Packet Pg. 12
Exhibit 1: Assessment Report--List and Itemized Abatement Costs

5.2 Packet Pg. 13
Building and Safety Services’ Report of Abatement Cost

NAME OF PROPERTY OWNER APN ADDRESS OF PROPERTY BALANCE
Ajay Z Singh 212252037 941 Renada Place $814.00
Dhillon Goyal Hotel Group, LLC 208451024 2231 Omega Road $2,056.00 George M Forney 209432002 2514 Marsh Drive $1,314.00
Ajitha Molakalapalli 223460012 1132 Chancery Way $1,242.00 Pedro Morales 208860143 59109 Via Vicenza $3,114.00
Christina Wong Vonpingel 217220155 3083 Tahoe Place $414.00 Hazel Ann Moore, Trustee 210441023 26 Yale Court $914.00 Rajasekhar and Anupama Raju 201821038 81 Elmwood Drive $414.00

5.2.a
Packet Pg. 14
Attachment: Exhibit 1 - Assessment Report--List and Itemized Abatement Costs (2024-082 : Receive Report Accepting Building and Safety

CITY COUNCIL STAFF REPORT
DATE: July 9, 2024
TO: City Council/City Manager
FROM: Kathi Heimann, Parks & Community Services Director By: Brad Morris, Division Manager
SUBJECT: RESOLUTION NO. 2024-083 - Authorizing the City Manager to Sign Exhibit C – Lease Supplement No. 12 to the San Ramon Library Lease Agreement Between the City of San Ramon and Contra Costa County for the Operation of the San Ramon Library and Approve the Amount of $128,347 for July 1, 2024 – June 30, 2025

RECOMMENDED ACTION
Staff recommends that the City Council approve this Resolution authorizing the City Manager to execute Exhibit C - Lease Supplement No. 12 to the San Ramon Library Lease Agreement between the City of San Ramon and Contra Costa County for the Operation of the San Ramon Library and approve the amount of $128,347 for July 1, 2024 - June 30, 2025.

BACKGROUND/DISCUSSION
The City of San Ramon and Contra Costa County Library entered into the first Library Use and Maintenance Agreement in October 1989 commensurate with the opening of the San Ramon Library at 100 Montgomery Street. The original agreement was amended in March 1994 and added additional terms relative to the City’s contribution to expanded hours of service. A new 99-year term was established for the agreement from March 1994 to March 2093.

In August 2005, a new Lease Agreement, with the same terms as the presiding agreements, was executed, with the City responsible for maintenance and repair of the City-owned library building, and the County responsible for utilities, refuse collection, and reimbursement to the City for janitorial costs. The term of the new lease agreement was through December 2087 in keeping with the original 99-year agreement.

On January 25, 2011, the current Lease Agreement replaced the 2005 Lease Agreement and was approved by City Council with Resolution 2011-013. Under the current lease agreement, the City is responsible for maintenance and repair of the building, utilities, refuse collection, and janitorial costs of approximately $351,844 annually. The City is also responsible for the reimbursement for additional hours of staffing above the baseline of 40 hours each week currently funded by the County. The County updated the number of “Base Hours” to 40 hours of service to the community on July 1, 2021 (Lease supplement No. 9).

5.3 Packet Pg. 15
The initial term of the agreement was effective from January 25, 2011, to June 30, 2011, with automatic renewals yearly unless written notice is given by either party of their intent to terminate at least one year in advance.

Exhibit C of the San Ramon Library Lease Agreement has been amended annually to reflect the schedule of costs for FY 12/13, 13/14, 14/15, 15/16, 17/18, 18/19, 19/20, 20/21, 21/22, 22/23, and 23/24. There was no amendment in FY 16/17 due to the renovation of the San Ramon Library.

The City will continue to be responsible for the annual facility and maintenance costs, as well as to cover the cost of the six “Extra Hours” bringing the total “Actual Hours” of services at the San Ramon Library to 46 hours. In addition, in 2023 the County began billing the City annually for technology equipment replacement, which is stated on the original lease agreement dated June 28,2011 and is not detailed in the lease supplement. The anticipated cost for the technology equipment replacement for 2024/25 is $20,548.

FISCAL ANALYSIS
The City’s obligation including the six additional hours is $107,799 and the technology equipment replacement cost is $20,548 for a total of $128,347 for the period of July 1, 2024 - June 30, 2025. Funding for 2024/25 Library services is included in the Parks and Community Services Department 2024-25 Operating Budget. Future fiscal impacts to the City are not known at this time and will be considered annually via the City and County budget process. This exhibit is for one year only.

STEPS FOLLOWING APPROVAL
Staff will work with the Contra Costa County Library administration to finalize Exhibit C - Lease Supplement No. 12 for execution by the City Manager for San Ramon Library Services.

ATTACHMENT
Exhibit C: Lease Supplement to No. 12 to the San Ramon Library

5.3 Packet Pg. 16
RESOLUTION NO. 2024-083

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAMON AUTHORIZING THE CITY MANAGER TO SIGN EXHIBIT C – LEASE
SUPPLEMENT NO. 12 TO THE SAN RAMON LIBRARY LEASE AGREEMENT

BETWEEN THE CITY OF SAN RAMON AND CONTRA COSTA COUNTY FOR THE

OPERATION OF THE SAN RAMON LIBRARY AND APPROVE THE AMOUNT OF $128,347 FOR JULY 1, 2024 – JUNE 30, 2025
WHEREAS, it is in the best interests of the City of San Ramon and Contra Costa County to operate the San Ramon Library as a joint use facility; and WHEREAS, the San Ramon Library Lease Agreement between the City of San Ramon and Contra Costa County for the Operation of the San Ramon Library was approved by City Council with Resolution 2011-013; and
WHEREAS, the City of San Ramon will fund the cost of technology upgrades and provide routine and annual maintenance at the San Ramon Main Library per the San Ramon Library Lease agreement approved by City Council with Resolution 2011-013 ; and WHEREAS, Exhibit C of the San Ramon Library Lease Agreement has been amended annually to reflect the schedule of cost for additional hours of service above the baseline provided by Contra Costa County for FY 12/13, 13/14, 14/15, 15/16, 17/18, 18/19, 19/20, 20/21, 21/22, 22/23, and 23/24 (there was no amendment in FY 16/17 due to the renovation of the San Ramon Library); and
WHEREAS, Exhibit C - Lease Supplement No. 12 to the San Ramon Library Lease Agreement supersedes all previous amendments to Exhibit C and commits the City of San Ramon and Contra Costa County to support the library through funding and operations as determined by the joint use library plan and the goals of each agency; and WHEREAS, under Exhibit C - Lease Supplement No. 12 to the San Ramon Library Lease Agreement, Contra Costa County will provide forty hours of baseline library services to the Community at the San Ramon Main Library; and
WHEREAS, under Exhibit C - Lease Supplement No. 12 to the San Ramon Library Lease Agreement, the City of San Ramon will fund six additional hours of library services to supplement the baseline hours; and
WHEREAS, the City of San Ramon 2024/25 Program of Services includes funding to supplement operating hours, technology upgrades and maintenance for one year at the San Ramon Library.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Ramon does hereby authorize and direct the City Manager to execute Exhibit C - Lease

5.3 Packet Pg. 17
Supplement No. 12 to the Lease Agreement between the City of San Ramon and Contra Costa County for the joint use of the San Ramon Library.

PASSED, APPROVED, AND ADOPTED, at the meeting of July 9, 2024 by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________
David E. Hudson, Mayor
ATTEST:
________________________
Christina Franco, City Clerk
Exhibit C - Lease Supplement No. 12 to the San Ramon Library Lease Agreement

5.3 Packet Pg. 18

EXHIBIT C
Lease Supplement for Fiscal Year 2024-25
LEASE SUPPLEMENT No. 12
This Lease Supplement No. 12 is dated July 1, 2024 and supplements the Lease dated June 28, 2011 (the “Lease”) between the City of San Ramon, a municipal corporation of the State of California (the “City”), and the County of Contra Costa, a political subdivision of the State of California (the “County”).

Unless otherwise defined herein, capitalized terms have the meanings given to such terms in the Lease.

1. The number of Base Hours to be provided by the County in the Fiscal Year beginning July 1, 2024 for the San Ramon Library is forty (40).

2. The number of Extra Hours to be provided in the Fiscal Year beginning July 1, 2024 is six (6).

3. The number of Actual Hours to be provided in the Fiscal Year beginning July 1, 2024 is forty-six (46).

4. The City’s Obligation for the Fiscal Year beginning July 1, 2024 is $107,799.

5. This Lease Supplement No. 12 is effective in accordance with the terms of the Lease.

COUNTY CITY
COUNTY OF CONTRA COSTA, a CITY OF SAN RAMON, a
Political subdivision of the State of Municipal Corporation of the State of California California
By: _______________________ by: _______________________ Alison McKee Steven Spedowfski
County Librarian City Manager

5.3.a
Packet Pg. 19
Attachment: Exhibit C: Lease Supplement to No. 12 to the San Ramon Library (2024-083 : San Ramon Library Agreement)

CITY COUNCIL STAFF REPORT
DATE:

TO:

FROM:

July 9, 2024
City Council/City Manager
Denton Carlson, Police Chief
By: Leysy Pelayo, Lieutenant
SUBJECT: RESOLUTION NO. 2024-084 - Authorizing the Mayor to Execute An Agreement with Flock Safety Authorizing a Statement of Work for the Equipment, Installation, Software, and Licensing Fees in an amount not to exceed $851,500 and Ratifying All Work Completed Without the Benefit of an Agreement Between May 22, 2023 and the Execution of the New Agreement

EXECUTIVE SUMMARY
On April 28, 2020, City Council authorized the Mayor to Execute Agreements with Lehr Auto Electric, Flock Safety, and Edgeworth Integration, LLC, to install fixed Automated License Plate Readers (ALPR) and situational awareness cameras (Sitcams) in San Ramon (Resolution No. 2020-034), in an amount not to exceed $1,277,027.

The City entered into the original contract with Flock Safety (Contract #C2020-013) on May 19, 2020 and executed an amendment and extension to that contract on December 1, 2020. The extension terminated on May 22, 2023. However, the technology has been implemented and is currently in place in San Ramon, and the City has required additional work since the May 22, 2023 termination date of the previous contract. For these reasons, the San Ramon Police Department requests authorization to enter into a new agreement with Flock Safety for the duration of five years. In addition to authorizing new work, the new contract would ratify all work by Flock Safety completed since the end of the previous contract. The new contract would expire tentatively on 6/30/2029.

In July 2023, the San Ramon Police Department applied for $5,616,613 in funding through the Organized Retail Theft Prevention Grant Program administered by the California Board of State and Community Corrections (BSCC). The City Council acknowledged and authorized this grant funding application during the City Council meeting held on July 25, 2023 (Resolution No. 2023-083).

In September 2023, the San Ramon Police Department was awarded $5,616,613 in funding by the BSCC under the Organized Retail Theft Prevention Grant Program. The funds authorized through this grant will be available to the San Ramon Police Department through the 2026/27 fiscal year.

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Included in the San Ramon Police Department’s Organized Retail Theft Prevention grant application was for ten additional Flock fixed Automated License Plate Reader (ALPR) cameras and the annual cost of licensing fee for the existing (45) and additional cameras for the duration of three years. This agreement with Flock Safety is being requested to fulfill the requirements needed for the implementation of the new cameras and the licensing fees of existing and new Flock ALPR cameras to facilitate the application of the previously mentioned programs associated with the Organized Retail Theft Prevention Grant Program. In order to maintain the annual pricing for the next five years, the San Ramon Police Department requests to enter into a five-year contract with Flock Safety for the existing and new cameras. The additional funds required for the Flock Safety project is $700,000 for the existing cameras and $151,500 for the 10 additional cameras for a total amount not to exceed $851,500.

The new Flock Safety ALPR cameras will be strategically positioned near major retail centers to enhance coverage in high-profile areas. Placing the additional cameras at ingress and egress points of major retail centers will provide the best investigative information in the event of organized retail theft. It will allow investigators to pinpoint involved vehicles more quickly and efficiently, resulting in the apprehension of suspects.

RECOMMENDED ACTION
Staff recommends approval of this Resolution authorizing the Mayor to execute an agreement with Flock Safety for continued service of existing cameras and addition to the Comprehensive Street Camera Installation Project (CIP 400002), in an amount of $851,500, and ratifying all work completed without the benefit of an agreement between May 22, 2023 and the execution of the new agreement.

BACKGROUND/DISCUSSION
In April of 2020, the San Ramon City Council authorized the implementation of a citywide camera plan to help maintain a safe and secure environment for the San Ramon Community. The Flock ALPR cameras capture license plate images, compare them with databases, and notify law enforcement of vehicles of interest. They do not involve facial recognition software and focus solely on vehicles, license plates, and vehicle characteristics.

Since the implementation of the Sitcams and Flock ALPR cameras, the San Ramon Police Department has found the cameras to be instrumental in preventing crimes and developing investigative leads after criminal acts had been reported, including organized retail theft crimes.

Camera technology has enhanced property and quality of life preservation within the City.

In September 2023, the Police Department obtained funding through the Organized Retail Theft Prevention Grant Program administered by the State of California Board of State and

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Community Corrections (BSCC). Included in this grant funding were allocations dedicated to the enhancement of our current city-wide camera plan.

The implementation of additional Flock ALPR cameras and situational cameras will better assist officers and detectives with the ability locate and prevent organized retail theft crimes in progress and those that have occurred.

The annual reoccurring cost for the new and existing cameras and use for the Flock Safety Advance Search is $ 170,000. There is a one-time implementation fee for the new cameras of $1,500. The total cost to enhance and continue the current camera program for five years is $851,500. To continue service and begin implementing the enhanced services without interruption, the Police Department authorized Flock Safety to commence work before the execution of a new contract. This new contract will ratify any work performed by Flock Safety since May 22, 2023.

To fund the necessary equipment, installation, and licensing fees to the new contract with Flock Safety is in an amount not to exceed $851,500. Of the total amount of the cost, $375,500 will be reimbursed through the Organized Retail Theft Prevention Grant Program administered by the State of California Board of State and Community Corrections (BSCC).

FISCAL ANALYSIS
The expenditure related to the implementation and licensing of the cameras is not expected to exceed $851,500. Based on the Organized Retail Theft Prevention Grant awarded to the San Ramon Police Department by the State of California Board of State and Community Corrections, funds are available within the grant to cover a portion of these additional expenditures. Of the $851,500 amount, $370,500 will be reimbursed through funding from the Organized Retail Theft Prevention Grant Program administered by the California Board of State and Community Corrections (BSCC). Over the next five years, the remaining cost will be $481,000.

The BSCC approved $3,000 per camera per year for the 10 additional cameras, plus $6,500 for implementation fees, for a total of $96,500. The implementation cost is $1,500, leaving an additional $5,000. The BSCC allows for the grant to be amended regarding how the funding is used, as long as it is used for the approved products or services. The grant program approved $93,000 per year for three years for the 45 existing cameras, totaling $279,000. The grant will be amended to allocate the remaining $5,000 from the additional cameras funding toward the cost of the existing cameras, increasing the funding to $284,000.

The projected breakdown of the cost over the five years for the existing and additional cameras is as follows:

Existing Cameras (45)
Fiscal Year Cost ORT Grant Reimbursement Remaining Amount 24/25 $140,000 $93,000 $47,000
25/26 $140,000 $93,000 $47,000
26/27 $140,000 $93,000 $47,000

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27/28 $140,000 N/A $140,000
28/29 $140,000 N/A $140,000
Total $700,000 $284,000 421,000
Additional Cameras (10)
Fiscal Year Cost ORT Grant Reimbursement Remaining Amount 24/25 $31,500 $31,500 $0
25/26 $30,000 $30,000 $0
26/27 $30,000 $30,000 $0
27/28 $30,000 N/A $30,000
28/29 $30,000 N/A $30,000
Total $151,500 $91,500 $60,000
An ongoing analysis of the efficacy of this program will continue throughout the grant period authorizing the expenditures. If the analysis shows these programs are beneficial to the City of San Ramon and the San Ramon Community, and there is a desire to continue these programs beyond the grand funding period, the annual expenditures related to Services for the services provided by Flock Safety is not anticipated to exceed $170,000 per fiscal year.

STEPS FOLLOWING APPROVAL
The City Attorney’s Office will forward the contract agreement to Flock Safety for execution.

Upon receipt of the executed amendment, staff will obtain approval for the appropriate requisitions for payment to fulfill the contract requirements and begin the installation of this additional equipment.

ATTACHMENT
A: 5 Year Contract for Existing Cameras
B: 5 Year Contract for Additional Cameras

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RESOLUTION NO. 2024-084

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAMON

AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH FLOCK

SAFETY AUTHORIZING A STATEMENT OF WORK FOR THE EQUIPMENT,

INSTALLATION, SOFTWARE, AND LICENSING FEES IN AN AMOUNT NOT TO EXCEED $851,500 AND RATIFYING ALL WORK COMPLETED WITHOUT THE BENEFIT OF AN AGREEMENT BETWEEN MAY 22, 2023 AND THE EXECUTION OF

THE NEW AGREEMENT
WHEREAS, on April 28, 2020, the City Council authorized an agreement with Flock Safety; and
WHEREAS, the City executed an amendment and extension to the original contract on December 1, 2020, and the extension terminated on May 22, 2023; and WHEREAS, to continue service and begin implementing the enhanced services without interruption, Flock Safety performed work after the May 22, 2023 expiration of the original contract; and.

WHEREAS, additional Flock Safety cameras and a new contract are being requested to enhance the San Ramon Police Department’s current camera program; and WHEREAS, the City Council desires to ratify all work, consistent with the approved scope of work, completed by Flock Safety without the benefit of an agreement between the expiration of the original contract (as extended) on May 22, 2023, and the execution of the new contract; and
WHEREAS, the proposal associated with the work to be completed includes equipment purchases, installation, software, and licensing fees for the camera program, and, as a result, an amended contract with Flock Safety is required; and
WHEREAS, Flock Safety is qualified and able to provide such services.

NOW, THEREFORE BE IT RESOLVED that the City Council of San Ramon authorizes the Mayor to execute an Agreement with Flock Safety authorizing a statement of work for the equipment, software, licensing, and installation, and accompanied storage, for an additional amount not to exceed $851,500, and hereby ratifies all work completed without the benefit of an agreement between May 22, 2023 and the execution of the new agreement.

PASSED, APPROVED AND ADOPTED at the meeting of July 9, 2024, by the following votes:

AYES:

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NOES:

ABSENT:

ABSTAIN:
___________________________
David E. Hudson, Mayor
ATTEST:
___________________________
Christina Franco, City Clerk

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Flock Safety + CA - City of San Ramon
______________
Flock Group Inc.
1170 Howell Mill Rd, Suite 210
Atlanta, GA 30318
______________
MAIN CONTACT:

Graham Carter
[email protected]
(415) 329-1307

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Attachment: A: 5 Year Contract for Existing Cameras (2024-084 : Flock Safety Agreement)

EXHIBIT A

ORDER FORM
Customer: CA - City of San Ramon Initial Term: 60 Months Legal Entity Name: CA - City of San Ramon Renewal Term: 24 Months Accounts Payable Email: [email protected] Payment Terms: Net 30 Address: 2401 Crow Canyon Rd San Ramon, California
94583
Billing Frequency: Annual - First Year at Signing.

Retention Period: 30 Days
Hardware and Software Products
Annual recurring amounts over subscription term
Item Cost Quantity Total
Flock Safety Platform $140,000.00
Flock Safety Flock OS
FlockOS ™ - Essentials Included 1 Included
Flock Safety LPR Products
Flock Safety Falcon ® Included 45 Included
Flock Safety FlockOS Add Ons
Flock Safety Advanced Search Included 1 Included
Professional Services and One Time Purchases
Item Cost Quantity Total
One Time Fees
Subtotal Year 1: $140,000.00
Annual Recurring Subtotal: $140,000.00
Estimated Tax: $0.00
Contract Total: $700,000.00
Taxes shown above are provided as an estimate. Actual taxes are the responsibility of the Customer. This Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then-current term.

Special Terms:

This Agreement supersedes any and all previously executed agreement between the Parties, relating to the provision of services by Flock to Customer and any exhibits attached thereto or incorporated therein by reference. Upon execution of this Agreement, all previously executed agreements pertaining to the Services provided shall run coterminous with the Term of this Agreement. In the event of any overlap in subscription terms and prior invoices, payments will be provided in pro rata credit. Any estimates provided on credits are subject to change based on execution of new contract.

The Term shall commence on 6/30/2024.

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Attachment: A: 5 Year Contract for Existing Cameras (2024-084 : Flock Safety Agreement)

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Attachment: A: 5 Year Contract for Existing Cameras (2024-084 : Flock Safety Agreement) Annual Billing Schedule
Year 1 $140,000.00
Year 2 $140,000.00
Year 3 $140,000.00
Year 4 $140,000.00
Year 5 $140,000.00
Contract Total: $700,000.00
Estimated Credits: $87,850.69
Net Total: $612,149.31
Invoice Balance Due
INV-37806 $3,500.00
INV-29940 $30,000.00
INV-36086 $105,000.00
Annual Totals
Year 1 + Estimated Credit: $52,149.31
Annual Recurring: $140,000.00
All credits are estimates based on contract start of 6/30/2024 Billing Schedule
Billing Schedule Amount (USD)
Year 1
At Contract Signing $140,000.00
Annual Recurring after Year 1 $140,000.00
Contract Total $700,000.00
*Tax not included

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Attachment: A: 5 Year Contract for Existing Cameras (2024-084 : Flock Safety Agreement) Product and Services Description
Flock Safety Platform Items Product Description Terms
FlockOS™ Flock Safety’s situational awareness operating system.

Flock Safety Falcon ®
An infrastructure-free license plate reader camera that utilizes Vehicle Fingerprint® technology to capture vehicular attributes.

The Term shall commence upon first installation and validation of Flock Hardware.

One-Time Fees Service Description
Installation on existing
infrastructure
One-time Professional Services engagement. Includes site & safety assessment, camera setup & testing, and shipping & handling in accordance with the Flock Safety Advanced Implementation Service Brief.

Professional Services - Standard
Implementation Fee
One-time Professional Services engagement. Includes site and safety assessment, camera setup and testing, and shipping and handling in accordance with the Flock Safety Standard Implementation Service Brief.

Professional Services -
Advanced Implementation Fee
One-time Professional Services engagement. Includes site & safety assessment, camera setup & testing, and shipping & handling in accordance with the Flock Safety Advanced Implementation Service Brief.

FlockOS Features & Description
FlockOS Features Description
Community Network Access
The ability to request direct access to feeds from privately owned Flock Safety Falcon® LPR cameras located in neighborhoods, schools, and businesses in your community, significantly increasing actionable evidence that clears cases.

Unlimited Users Unlimited users for FlockOS
State Network (License Plate Lookup Only) Allows agencies to look up license plates on all cameras opted into the Flock Safety network within your state.

Nationwide Network (License Plate Lookup Only)
With the vast Flock Safety sharing network, law enforcement agencies no longer have to rely on just their devices alone. Agencies can leverage a nationwide system boasting 10 billion additional plate reads per month to amplify the potential to collect vital evidence in otherwise dead-end investigations.

Law Enforcement Network Access The ability to request direct access to evidence detection devices from Law Enforcement agencies outside of your jurisdiction.

Time & Location Based Search Search full, partial, and temporary plates by time at particular device locations License Plate Lookup Look up specific license plate location history captured on Flock devices Vehicle Fingerprint Search Search footage using Vehicle Fingerprint™ technology. Access vehicle type, make, color, license plate state, missing / covered plates, and other unique features like bumper stickers, decals, and roof racks.

Insights & Analytics Reporting tool to help administrators manage their LPR program with device performance data, user and network audits, plate read reports, hot list alert reports, event logs, and outcome reports.

ESRI Based Map Interface Map-based interface that consolidates all data streams and the locations of each connected asset, enabling greater situational awareness and a common operating picture.

Real-Time NCIC Alerts on Flock ALPR Cameras
Receive automated alerts when vehicles entered into established databases for missing and wanted persons are detected, including the FBI’s National Crime Information Center (NCIC) and National Center for Missing & Exploited Children (NCMEC) databases.

Unlimited Custom Hot Lists Ability to add a suspect’s license plate to a custom list and get alerted when it passes by a Flock camera

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Attachment: A: 5 Year Contract for Existing Cameras (2024-084 : Flock Safety Agreement) By executing this Order Form, Customer represents and warrants that it has read and agrees all of the terms and conditions contained in the Terms of Service located at https://www.flocksafety.com/terms-and-conditions /L1/
The Parties have executed this Agreement as of the dates set forth below.

FLOCK GROUP, INC. Customer: CA - City of San Ramon
By:
\FSSignature2\
By:
\FSSignature1\
Name:
\FSFullname2\
Name:
\FSFullname1\
Title:
\FSTitle2\
Title:
\FSTitle1\
Date:
\FSDateSigned2\
Date:
\FSDateSigned1\
PO Number:

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Attachment: A: 5 Year Contract for Existing Cameras (2024-084 : Flock Safety Agreement) Flock Safety + CA - City of San Ramon
______________
Flock Group Inc.
1170 Howell Mill Rd, Suite 210
Atlanta, GA 30318
______________
MAIN CONTACT:

Jeffrey Lents
[email protected]
480 621 2406

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Attachment: B: 5 Year Contract for Additional Cameras (2024-084 : Flock Safety Agreement)

ORDER FORM
This order form (“Order Form”) hereby incorporates and includes the terms of the previously executed agreement (the “Terms”) which describe and set forth the general legal terms governing the relationship (collectively, the "Agreement" ). The Terms contain, among other things, warranty disclaimers, liability limitations and use limitations.

This additional services Agreement will be effective when this Order Form is executed by both Parties (the “Effective Date”) Customer: CA - City of San Ramon Initial Term: 60 Months Legal Entity Name: CA - City of San Ramon Renewal Term: 60 Months Accounts Payable Email: Payment Terms: Net 30
Address: 2401 Crow Canyon Rd San Ramon,
California 94583
Billing Frequency: Annual Plan - First Year Invoiced at Signing.

Retention Period: 30 Days
Hardware and Software Products
Annual recurring amounts over subscription term
Item Cost Quantity Total
Flock Safety Platform $30,000.00
Flock Safety LPR Products
Flock Safety Falcon ® Included 10 Included
Professional Services and One Time Purchases
Item Cost Quantity Total
One Time Fees
Flock Safety Professional Services
Professional Services - Existing Infrastructure
Implementation Fee $150.00 10 $1,500.00
Subtotal Year 1: $31,500.00
Annual Recurring Subtotal: $30,000.00
Estimated Tax: $0.00
Contract Total: $151,500.00
Taxes shown above are provided as an estimate. Actual taxes are the responsibility of the Customer. This Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then-current term.

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Attachment: B: 5 Year Contract for Additional Cameras (2024-084 : Flock Safety Agreement) Billing Schedule
Billing Schedule Amount (USD)
Year 1
At Contract Signing $31,500.00
Annual Recurring after Year 1 $30,000.00
Contract Total $151,500.00
*Tax not included

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Attachment: B: 5 Year Contract for Additional Cameras (2024-084 : Flock Safety Agreement) Product and Services Description
Flock Safety Platform Items Product Description Terms
Flock Safety Falcon ®
An infrastructure-free license plate reader camera that utilizes Vehicle Fingerprint® technology to capture vehicular attributes.

The Term shall commence upon first installation and validation of Flock Hardware.

FlockOS Features & Description
FlockOS Features Description

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Attachment: B: 5 Year Contract for Additional Cameras (2024-084 : Flock Safety Agreement) By executing this Order Form, Customer represents and warrants that it has read and agrees to all of the terms and conditions contained in the previously executed agreement.

The Parties have executed this Agreement as of the dates set forth below.

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Attachment: B: 5 Year Contract for Additional Cameras (2024-084 : Flock Safety Agreement)

CITY COUNCIL STAFF REPORT
DATE: July 9, 2024
TO: City Council/City Manager
FROM: Steven Spedowfski, City Manager
By: Scott Koll, Deputy City Manager
SUBJECT: Review and Approve Draft Sales Tax Ballot Measure Documents

RECOMMENDED ACTION
Consider adopting the resolution establishing November 5, 2024 as the election date for the voters to consider an ordinance imposing a one cent per dollar (1.0%) transaction and use (“sales”) tax for a period of ten years; ordering the submittal of the ordinance to the voters at the election; requesting that the Board of Supervisors consent to consolidation of this election with the statewide general election on the same date; directing the City Attorney to prepare an impartial analysis; and specifying procedures and processes related to ballot arguments.

BACKGROUND/DISCUSSION
The City faces a $17.6 million structural budget shortfall in Fiscal Year 2024-25 whereby ongoing expenditures outpace revenues. In recent budget development presentations to Council, the five-year forecast showed a widening gap that reaches $52.3 million in Fiscal Year 2028- 2029 if no further action is taken and $109.9 million if all unfunded capital improvement projects are included.

In Fiscal Year 2024-2025, the City has taken the necessary steps to cut the initial budget proposal across all departments and service areas. Staff will present a revised balanced budget for Council consideration and adoption prior to the required deadline of June 30, 2024.

In February 2024, City Council held its annual strategic goal setting session. The significant outcome was that Council reaffirmed their commitment to six goals:

1. maintain a safe and secure environment;

2. maintain a secure financial base;

3. provide cost effective and responsive services to sustain quality of life;

4. build and maintain quality facilities and infrastructure;

5. enhance engagement and communication with residents and the business community; and

6. balance land use planning for housing, retail, jobs, and open space.

The City has faced recurring structural deficits in the past. Over the last five years, the City has experienced a range of $5 to $8 million in unmet operational funding needs. Council Goals #2

9.1 Packet Pg. 37
and #3 became the primary focus for City staff in early March 2024 after learning the budget shortfall exceeded the City’s historical deficit pattern with an initial deficit of $14.1 million.

After multiple sessions where Council evaluated various budget balancing options, the City opted for a combination of service delivery cuts and revenue enhancements, as well as authorizing the use of one-time reserves to fund its operations through June 30, 2025.

City Council and staff proactively addressed this challenge in three ways:

1. cut services to reduce operating costs;

2. evaluated program costs and any opportunities for full cost recovery; and

3. considered options to enhance revenues.

Starting in late February 2024, Council and staff began the difficult process of evaluating and ultimately proposing expenditure reductions to remedy the budget imbalance. Those reductions included cuts to personnel and service delivery. The Council directed staff to cut six (6) positions, removing them from the budget entirely, to lower personnel costs. Personnel costs represent the largest operating expenditure which links directly to the level of service the City provides its residents.

Dating back to March 2023, the City Council authorized staff to begin exploring revenue enhancements. The City had two aspects to analyze: 1) current cost recovery through its adopted fee schedule; and 2) potential increases to existing revenues or new sources of revenue.

Regarding the first aspect, the City Council approved a comprehensive fee study to analyze the current rate of recovery versus actual program costs. The City enlisted the services of Matrix Consulting Group, who employed a cost allocation methodology wherein each fee is individually evaluated based on level of effort (“time assumption by position”) multiplied by the fully burdened hourly rate to generate that fee’s (and corresponding program’s) total cost.

Matrix informed the Council that, based on its analysis, the City’s Fiscal Year 2023-24 fee schedule as adopted was under-recovering by approximately $1.5 million, or 79% of its costs.

On April 9, 2024, the City Council received the report and provided direction to staff. On April 23, 2024, the City Council reconsidered its cost recovery rate and subsequently adopted a revised fee schedule by Resolution No. 2024-051.

COMMUNITY OUTREACH
The City Council directed staff to engage a community survey consultant to help determine interest in moving forward with a sales tax revenue measure and to better understand the community’s interest, priorities and vision for the future of San Ramon. Staff enlisted the expertise of EMC Research to conduct these polls, the first of which was conducted in September 2023.

The consultant interviewed 500 residents offering the survey in English or Chinese, as well as across multiple media options: email, text link to a web survey, or over the telephone with a trained professional. The survey explored local support for a sales tax measure. Staff focused on sales tax given it represents the second largest revenue generator (at $13.3 million, or 21% of all General Fund revenues) behind property tax in the City of San Ramon.

9.1 Packet Pg. 38
Surveying the community was an important first phase in determining community sentiment, overall satisfaction of quality of life and the viability of a revenue measure. Based on the survey results, the City Council chose to continue pursuing a revenue measure and continue with public engagement and outreach.

Since March 2023, public outreach consisted of stakeholder meetings, a mailed survey to over 30,000 San Ramon residents and an online survey to better understand the community’s quality of life needs and priorities for the future. The purpose of the engagement was to learn and understand the community’s perspective and for the City to offer objective, educational information about the future needs of San Ramon.

City Council members and staff met with over 20 community groups to share the City’s financial outlook. The City hosted three town hall forums to engage with the public on the City’s financial outlook, including two in-person forums and one virtual. The City recorded the virtual town hall and published it on the City’s website at the following location: www.sanramon.ca.gov/funding <http://www.sanramon.ca.gov/funding>. The City solicited feedback through both mailed (tearoff style) and online survey options, which yielded approximately 3,500 responses. Residents said their top priorities were:

1. Public Safety

2. Streets and Roads

3. Parks and Open Space preservation.

In May 2024, EMC Research conducted a second survey to assess community sentiment toward a revenue measure. The results of that survey were presented to Council on June 25, 2024.

Information from the survey showed that the San Ramon community values and enjoys a high quality of life. This feedback from residents helped inform the proposed ballot measure question that is before the City Council. Attachment A provides more information about the proposed ballot measure.

PROPOSED BALLOT QUESTION
Attached to this staff report is a resolution placing the measure before the voters on November 5, 2024 as well as an ordinance that would be adopted as part of the measure. The ballot question reads as follows:
“To provide local funding to maintain City of San Ramon programs, services and facilities, including: public safety and police services; neighborhood crime prevention; traffic enforcement and road safety; street and road improvements and maintenance; library and recreation services; park maintenance; youth, senior, and cultural programs; and other city services and facilities; shall the City of San Ramon levy a one cent sales tax, providing approximately $16,000,000 annually for 10 years, subject to public review, annual audits, and all funds benefitting San Ramon?”

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If the measure is approved by the voters, the City would develop a process for independent audits to be made available to the public, staff reports concerning the audits to the City Council, a public City Council meeting to discuss the audits and reports, and Citizen Oversight to ensure all funds are spent responsibly on general services consistent with community priorities.

BALLOT MEASURE PROCESS
The following steps will need to be taken in order to place a sales tax measure on the ballot:

1. July 23, 2024: City Council passes resolution, formally placing the measure on the November 5, 2024 ballot; this action should include direction regarding the authority to submit a ballot argument in support of the measure and a potential rebuttal argument.

2. August 9, 2024: Filing deadline for November 2024 Election; Deadline to submit ballot measure to Contra Costa County Board of Supervisors

3. November 5, 2024: Election Day

NEXT STEPS
If the City Council chooses to place the proposed ballot measure on the November 5, 2024 ballot, staff would submit the resolution and draft ordinance to the County and the City Attorney would prepare an impartial analysis to be included with the ballot measure.

ALTERNATIVE ACTION
Do not adopt the resolution and do not put a one-cent per dollar (1%) sales tax measure on the ballot for the November 2024 election.

FINANCIAL IMPACTS
Given that there is a scheduled City Council election in 2024, the FY2024-25 budget already includes an estimated amount for election costs ($110,000). Adding the proposed measure to the ballot will add an estimated $125,000 to $200,000 in costs to the election.

Passage of a local one cent per dollar (1%) transactions and use (“sales”) tax would generate approximately $16 million in additional revenue and, after meeting the City’s funding reserves policy requirement of 36%, would leave approximately $10.25 million available to address the City’s current $17.6 million structural deficit.

Failure to pass a local one cent per dollar (1%) transactions and use (“sales”) tax would require additional personnel and service cuts to balance the structural deficit outside the use of one-time available funding.

ATTACHMENT
A: SALES TAX MEASURE FAQ
B: RESOLUTION Draft
C: ORDINANCE Draft

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D: BALLOT QUESTION Draft

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What is this project all about?
It is the City of San Ramon’s responsibility to provide the essential public services and facilities that maintain and protect our community’s high quality of life. City employees continue to work hard every day to provide the services that residents tell us they value most —vibrant neighborhoods; public safety; safe streets and roads; quality parks and open spaces, recreation venues, and programs; abundant arts and cultural opportunities; needed social services; and more. Our goal is to keep pace with these service needs while also being fiscally responsible. The City’s General Fund Budget provides funding for both City services and facilities. The City’s operation and budget are fiscally sound; however, recent assessments have shown that San Ramon’s needs are significant and growing. The City is now considering funding options to address its needs responsibly and holding a discussion with input from the public to ensure residents have their say in important decisions.

What are the City’s greatest needs?
• PUBLIC SAFETY: Maintaining neighborhood patrols and public safety staffing levels, crime prevention programs, traffic enforcement, increasing pedestrian safety, and emergency/disaster preparedness (reminder: fire services provided by San Ramon Valley Fire District).
• STREETS AND ROADS: The City’s current pavement condition index (“PCI”) sits at 77, well ahead of the Bay Area average of 68. The City heard from residents the importance of maintaining our streets and roads; however, the impacts of inflation on construction costs has negatively impacted the City’s maintenance schedule and available funding, which results in deferring maintenance and repair to future budgets. The City seeks to maintain its current PCI level with a goal of improving that condition if the funding needed were available. The City actively pursues external funding opportunities—like federal and state grants—to pay for roadway improvements. • PARKS AND OPEN SPACE: Residents of San Ramon have reason to celebrate its 58 parks, trails, and open space.

What is the City doing to manage its finances responsibly? The City has been long recognized for our fiscal prudence. The City is in solid financial condition and makes every effort to use resources wisely. The City fully funded its pension obligation and seeks out ways to attract top talent by focusing on its culture, inspiring staff to bring their best to work each day. The City has proactively set aside funds in a reserve for worker pensions.

When significant expenditures beyond our regular budget arise, a plan for funding them is developed. That is particularly important for major facility replacement needsthat will continue to enhance San Ramon’s quality of life. The City haslittle General Fund debt and sets aside 36% of General Fund expenditures as emergency reserves each year.

Why does the City need more funding?
The City’s General Fund Budget provides funding for both City services and City facilities. In particular, the City’s Fiscal Year 2024-25 budget required implementing a number of strategies to balance a $17 million shortfall. Those strategies included cuts to library hours, staffing cuts across the City to include Police Services, and deferring maintenance projects to the City’s facilities, streets, and roads. The City explored revenue enhancement options that included a comprehensive fee schedule analysis that resulted in increasing cost recovery of city services of $1.5 million annually. The City prides itself on fully funding its obligations that include critical infrastructure maintenance funding, roadway improvements, and quality parks and sports field annual maintenance.

How has the City involved the community in this effort? To help protect San Ramon’s quality of life now and in the future, City leaders have been evaluating all possible options for generating additional revenues to address identified City needs. This process has been going on since the Great Recession, but it has ramped up over the past two years. This includes working with leaders and stakeholders across the community, prioritizing replacement projects and identifying responsible funding strategies through a thorough public engagement effort. While many ideas and suggestions have been shared, no decisions have been made yet. The City has been engaging with residents about the best ways to move forward in a sustainable, responsible way.

City of San Ramon
2024 Local Revenue Measure Feasibility Project

FREQUENTLY ASKED QUESTIONS

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Attachment: A: SALES TAX MEASURE FAQ (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents) What solution is being considered?
City leaders have been evaluating possible funding options for generating additional revenues with the least impact possible to San Ramon residents. One option currently being discussed is a one-cent sales tax increase, a step that would require local voter support in order to go into effect. This particular option would ensure that visitors pay their fair share for use of San Ramon services while not impacting certain essential purchases or expenses like rent, mortgage payments, utilities, groceries, prescription medication, and medical insurance or appointments. Local governments rely on sales tax revenue to fund essential local public services. Sales tax funds would give the City the flexibility needed to both fund important community services and maintain facilities that support these programs.

What would funds raised by a possible sales tax measure go towards? These funds would go directly into the City’s General Fund to help fund essential city services, including:
• Public Safety: retail theft suppression, local police patrols, and crime/youth violence prevention services. • Keeping city parks, open spaces, paths, and sports fields in good working condition. • Protecting services forsenior citizens and youth, including after-school programs. • Investing in supporting small business and attracting new businesses, jobs, and economic activity. • Restoring and then maintaining library hours,services, and programs. • Repairing and maintaining aging facilities.

How much would a new measure cost?
The measure currently being explored by City leaders is a one-cent sales tax increase. Approximately 32% of sales tax revenues are paid by visitors to San Ramon. This measure would require a vote of the people and a 50%+ 1 voter (simple majority) threshold for approval. If approved by city voters, it would add $1 dollar to a $100 purchase made in San Ramon.

How much additional funding would a one cent sales tax generate for the City? A one cent sales tax would raise about $15.7 million per year for City services, depending on the economy and the amount ofsales tax generated in San Ramon. All funds generated by the local sales tax would be locally controlled and would stay in San Ramon to provide essential city services, programming, and facility improvements. By law, the State could not take this funding away.

What would a sales tax apply to? What’s taxed and what isn’t? A local sales tax would apply to the same goods and services and be subject to the existing state sales tax on tangible personal property. For example: furniture, cars, giftware, toys, antiques, clothing and gasoline would be subject to the tax. Items that are exempt from sales tax include sales of certain food products for human consumption (groceries), sales to the U.S. government, sales of prescription medicine and certain medical devices, sales of items paid for with food stamps, rent, mortgage payments, and utilities.

Who pays the City’s current sales tax?
Everyone who purchases any items (other than those exempted) in San Ramon will pay the tax, including visitors. Approximately 30% of the sales tax revenue generated annually by the City of San Ramon comes from non-residents.

How does San Ramon compare with nearby cities on sales tax rates? San Ramon’s current sales tax rate is 8.75% - currently the lowest of all cities in Contra Costa County. If a one cent sales tax measure goes to the ballot and voters approve it, San Ramon will join seven other cities in the County with a 9.75% sales tax rate.

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Attachment: A: SALES TAX MEASURE FAQ (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents) Contra Costa County Sales Tax Rates by City
(in alphabetical order, by tax rate)
City Sales Tax Rate
El Cerrito 10.25%
Antioch 9.75%
Concord 9.75%
Martinez 9.75%
Moraga 9.75%
Orinda 9.75%
Pinole 9.75%
Richmond 9.75%
Hercules 9.25%
Pittsburg 9.25%
Pleasant Hill 9.25%
Walnut Creek 9.25%
San Pablo 9.25%
Brentwood 8.75%
Clayton 8.75%
Danville 8.75%
Lafayette 8.75%
Oakley 8.75%
San Ramon 8.75%
How much of the revenue generated by the sales tax goes to the State? NONE. By law, every penny generated by the proposed sales tax increase must stay in San Ramon to fund essential city services and facility improvements for San Ramon. None of these funds can be taken by the State or diverted to other communities. By comparison, the City of San Ramon receives 1% of the existing 8.75% sales tax that it collects.

When would this proposal be placed on the ballot?
No decisions have been made yet. If the City Council decides to place a measure on the November 2024 ballot, it must file the measure with the County Registrar of Voters by August 09, 2024.

What happens if we don’t pass a revenue measure for the City? While no decisions have been made yet, it is likely that some City programs and services would be discontinued and others reduced even further. As far as facilities, if no new funding were to become available, the facilities we have now will continue to age and deteriorate, and at some point they will become obsolete and unusable for the community.

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Attachment: A: SALES TAX MEASURE FAQ (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents) RESOLUTION NO. XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAMON ESTABLISHING NOVEMBER 5, 2024 AS THE ELECTION DATE TO CONSIDER AN ORDINANCE IMPOSING A ONE CENT PER DOLLAR (1.0%) TRANSACTIONS AND USE (“SALES”) TAX FOR A PERIOD OF 10 YEARS; 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 CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS; AND SPECIFYING

PROCEDURES RELATED TO SUBMISSION OF BALLOT ARGUMENTS
WHEREAS, the City of San Ramon (“City”) offers outstanding quality of life services for approximately 87,000 residents and businesses in its community; and WHEREAS, the City is a regional center for economic vitality with a variety of offices, restaurants, shopping centers, and parks and open spaces; and WHEREAS, the City provides vital services to ensure that its residents and business community enjoy safe neighborhoods, quality public facilities, streets, parks, open spaces, and recreation venues, and vibrant arts and cultural opportunities; and WHEREAS, the City provides vital services to ensure that its residents and business community enjoy safe neighborhoods, quality public facilities, streets, parks, open spaces, and recreation venues, and vibrant arts and cultural opportunities; and WHEREAS, the City has experienced more frequent budget shortfalls which required deeper cuts to city operating budgets to maintain its parks, public infrastructure, and public safety operations; and
WHEREAS, inflationary pressures in the economy over time have eroded the purchasing power and ability for the City of San Ramon to reinforce its financial reserves to endure societal and economic disruptions like the Great Recession or a global pandemic; and WHEREAS, the City of San Ramon has carefully evaluated how to deal with this potential reduction of staffing to deliver services to the community, while continuing to provide the quality of life services that community residents rely upon; and WHEREAS, the City of San Ramon has taken substantial steps to reduce costs and protect services, deploying a combination of strategies that included reducing personnel costs by cutting staff levels (6 full time positions), enhancing revenues by pursuing a fee schedule that aims to fully recover costs associated with city services, and focusing on strategic long-term growth to ensure future development pays its costs for city services;
WHEREAS, the City has deferred maintenance including necessary work on

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Attachment: B: RESOLUTION Draft (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents) neighborhood streets, roads, and infrastructure due to lack of funding so that other services could be maintained; and
WHEREAS, the levying of a transactions and use tax of one cent per dollar (1.0%) will ensure that all money raised will be controlled locally for local services, and cannot be taken away by Sacramento; and
WHEREAS, passage of a transaction and use tax would continue to include annual audits and oversight by community members to ensure the additional funds are spent and accounted for properly; and
WHEREAS, the San Ramon 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 measure and for rebuttal arguments; and WHEREAS, it is desirable that the election be consolidated with the statewide election to be held on the same date and that within the City, the precincts, polling places and election officers of the two elections be the same, and that the Registrar of Voters of the County of Contra Costa canvass the returns of the General Election and that the election be held in all respects as if there were only one election; and
WHEREAS, this tax 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, and 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.

NOW, THEREFORE BE IT RESOLVED THAT:

NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN RAMON THAT:

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 San Ramon 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 tax, as authorized by Revenue and Taxation Code section 7285.9. This measure shall be designated by letter by the Contra Costa County Registrar of Voters. Pursuant to Elections Code Section 10400 et seq., the election for this measure shall be consolidated with the established election to be conducted on November 5, 2024.

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Attachment: B: RESOLUTION Draft (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents)

3. Ballot Language. The question to be presented to the voters shall be as follows:
“To provide local funding to maintain City of San Ramon programs, services and facilities, including: public safety and police services; neighborhood crime prevention; traffic enforcement and road safety; street and road improvements and maintenance; library and recreation services; park maintenance; youth, senior, and cultural programs; and other city services and facilities; shall the City of San Ramon levy a one cent sales tax, providing approximately $16,000,000 annually for 10 years, subject to public review, annual audits, and all funds benefitting San Ramon?” YES NO

4. Proposed Ordinance. The ordinance authorizing the general tax to be approved by the voters pursuant to Sections 2 and 3 of this Resolution is as set forth in Attachment 3 hereto.

The City Council approved, by a 2/3 vote of all members of the City Council, the ordinance, the form thereof, and its submission to the voters of the City of San Ramon 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, shall be made available to the public upon request. The ordinance specifies that the rate of the transactions and use tax shall be one cent per dollar (1.0%) 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 cent per dollar (1.0%) 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 thirty (30) 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 San Ramon 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 requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of Contra Costa is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide Election on Tuesday, November 5, 2024 for the purpose of placing the measure set forth in Sections 2 and 4 on the ballot.
(b) The County of Contra Costa Registrar of Voters is authorized to canvass the returns of the General 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 County of Contra Costa Registrar of Voters to take any and all steps necessary for the holding of the consolidated election.
(d) The City of San Ramon recognizes that additional costs will be incurred by the County of Contra Costa by reason of this consolidation and agrees to reimburse the County for any costs.

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Attachment: B: RESOLUTION Draft (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents)

7. Submission of Impartial Analysis.
(a) The City Attorney shall prepare an impartial analysis of the measure. (b) 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 passage and adoption, and the City Clerk is directed to send certified copies of this Resolution to the Contra Costa County Board of Supervisors and the Contra Costa 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. Section 15000 et. seq. "CEQA Guidelines"). The transactions and use 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 tax 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. Therefore under CEQA Guidelines section 15060, review under CEQA is not required.

PASSED, APPROVED AND ADOPTED at the meeting of July 23, 2024 by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________
David E. Hudson, Mayor
ATTEST:
________________________
Christina Franco, City Clerk

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Attachment: B: RESOLUTION Draft (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents) DRAFT ORDINANCE REPEALING DIVISION A-9, CHAPTER 1 OF THE SAN RAMON MUNICIPAL CODE AND REPLACING IT WITH THE FOLLOWING:

CHAPTER 1. TRANSACTIONS AND USE TAX
A9-1. Title.

This chapter shall be known as the San Ramon Transactions and Use Tax Ordinance. The City of San Ramon hereinafter shall be called "City." This chapter shall be applicable in the incorporated territory of the City.

A9-2. Operative Date.
"Operative date" means the first day of the first calendar quarter commencing more than one hundred ten (110) days after the date of adoption of this ordinance.

A9-3. Purpose.

This chapter 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 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.

B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the California Department of Tax and Fee Administration 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 California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes and, at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this chapter.

A9-4. Contract with State.

Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax chapter; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration 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.

A9-5. Transactions Tax Rate.

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Attachment: C: ORDINANCE Draft (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents) For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one cent per dollar (1 cent/1 dollar) 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.

A9-6. Place of Sale.

For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-ofstate 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 (1) place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.

A9-7. Use Tax Rate.

An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use, or other consumption in said territory at the rate of one cent per dollar (1 cent/1 dollar) 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.

A9-8. Adoption of Provisions of State Law.

Except as otherwise provided in this chapter 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 chapter as though fully set forth herein.

A9-9. 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 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 or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this chapter.

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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Attachment: C: ORDINANCE Draft (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents) 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.

1. "A retailer engaged in business in the District" shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this State or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000.00). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

A9-10. 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 chapter.

A9-11. Exemptions and Exclusions.

A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any Stateadministered 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 subsection, 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 an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out-ofCity and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

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Attachment: C: ORDINANCE Draft (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents)

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 purposes of subsections (B)(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 chapter 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 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 the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

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.

5. For the purposes of subsections (C)(3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subsection (C)(7) of this section, 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

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Attachment: C: ORDINANCE Draft (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents) 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 chapter 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.

A9-12. Amendments to State Law.

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 Parts

1.6 and 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Parts 1.6 and 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this chapter; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter.

A9-13. Enjoining Collection Forbidden.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this chapter, 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.

A9-14. Annual Audit; Citizens' Oversight.

A. Beginning with the fiscal year that ends June 30, 2025, the City's independent auditors shall, as part of their annual audit of the City's financial statements, review the collection and expenditure of revenue from the tax authorized by this chapter. The auditors' review shall be a public document, and the City Clerk shall post the review on the City website.

B. The Finance Director shall annually review the auditors' findings and report to the City Council in a noticed public meeting regarding the accuracy of the auditors' findings regarding the revenues and expenditures. The Council may, at its discretion, direct the Finance Director to present the report to and solicit input from a Council subcommittee before making the presentation to the full Council.

C. To facilitate citizen oversight, the City Clerk shall create and maintain a registry of members of the public that elect to receive notice by email of the publication of the annual audit report. The email notice shall be sent to all emails listed in the registry at least seven (7) days before the public meeting on the audit report and shall include the following:

1. A link to the audit report;

2. A link for submittal of comments on the audit report;

3. Notice of the Council meeting and any Council subcommittee meetings on the audit report, including the location, date, and time of each meeting; and

4. A note advising the recipient of the email that all comments received shall be made a part of the record and considered by the Council in any decision it makes pertaining to the audit report.

A9-15. Termination Date.

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Attachment: C: ORDINANCE Draft (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents) The authority to levy the tax imposed by this chapter shall expire on December 31 following the 10th anniversary of the operative date.

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Attachment: C: ORDINANCE Draft (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents) City of San Ramon
November 2024 Sales Tax Measure
75-word Ballot Question
“To provide local funding to maintain City of San Ramon programs, services and facilities, including: public safety and police services; neighborhood crime prevention; traffic enforcement and road safety; street and road improvements and maintenance; library and recreation services; park maintenance; youth, senior, and cultural programs; and other city services and facilities; shall the City of San Ramon levy a one cent sales tax, providing approximately $16,000,000 annually for 10 years, subject to public review, annual audits, and all funds benefitting San Ramon?” __________________
Word Count Version
“To provide local funding to maintain CityofSanRamon programs, services and facilities, including:
public safety and police services; neighborhood crime prevention; traffic enforcement and road safety; street and road improvements and maintenance; library and recreation services; park maintenance; youth, senior, and cultural programs; and other city services and facilities; shall the CityofSanRamon levy a one cent sales tax, providing approximately $16,000,000 annually for 10 years, subject to public review, annual audits, and all funds benefitting SanRamon?” Word count: 75 words EXACTLY, with “City of San Ramon” and “San Ramon” counting as ONE word each.

9.1.d
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Attachment: D: BALLOT QUESTION Draft (2024-27 : Staff Report to Review Draft Sales Tax Ballot Measure Documents)

San Ramon City CouncilJuly 9, 2024

San Ramon City Council
July 9, 2024