CITY COUNCIL REGULAR MEETING - DECEMBER 05, 2022 PAGE 1 OF 3
CITY COUNCIL REGULAR MEETING
Monday, December 05, 2022 at 5:00 PM
94 N. Washington Street, Sonora, CA 95370
(209) 532-4541
AGENDA
NOTICE IS HEREBY GIVEN that the Sonora City Council will have their regular meeting on Monday, December 5, 2022 at 5:00 PM in the City of Sonora Council Chambers located at 94 N. Washington Street Sonora, CA 95370.
NOTICE: THIS MEETING WILL BE HELD IN ACCORDANCE WITH GOVERNMENT CODE SECTION 52953(E) AND THE CITY OF SONORA CITY COUNCIL RESOLUTION NO. 05-16-2022-A.
THIS MEETING IS PHYSICALLY OPEN TO THE PUBLIC OR MEMBERS OF THE PUBLIC MAY PARTICIPATE IN THE MEETING VIA VIDEO CONFERENCING AT:
Zoom Meeting Link:
https://us06web.zoom.us/j/87460555933?pwd=UFBFZ0EyR3pjcXNXZWtXVlZLQTJoQT09 Dial: (669) 900-6833
Meeting ID: 874 6055 5933
Passcode: 7dY809
MEMBERS OF THE PUBLIC WILL BE GIVEN THE OPPORTUNITY TO PROVIDE PUBLIC COMMENT.
THIS MEETING WILL BE OPEN TO THE PUBLIC AND WILL BE AVAILABLE VIA ZOOM. IT WILL ALSO BE LIVE STREAMED ON THE CITY'S WEBSITE AT www.sonoraca.com.
Written comments can be submitted to be included as part of the administrative record, they will not be read during the meeting. All comments must be received by 3:00 pm on the day of the noticed meeting and can be submitted to the City Clerk at 94 N. Washington Street Sonora, CA 95370 or via email to [email protected].
CLOSED SESSION - 4:00 PM
CALL TO ORDER
ROLL CALL
PUBLIC COMMENTS
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ADJOURN INTO CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL - Anticipated Litigation - Significant exposure to litigation pursuant to Gov. Code § 54956.9(d)(2): Two (2) Potential Cases; Melissa Eads, City Administrator, Doug White, City Attorney
RECONVENE INTO OPEN SESSION [City Council Chambers]
OPEN SESSION - 5:00 PM
REPORT OUT OF CLOSED SESSION
PLEDGE OF ALLEGIANCE
ROLL CALL
CITY CLERK’S REPORT ON AGENDA POSTING
APPROVAL OF THE AGENDA
PRESENTATIONS
2. Receive an update from Tuolumne County District 1 Supervisor David Goldemberg.
PUBLIC COMMENT (NON-AGENDA ITEMS)
The public may address the Council on any item of public interest not otherwise on the agenda that is within the jurisdiction of the City. No action may be taken. Matters to be addressed may be referred to City Staff or placed on a subsequent meeting Agenda. Speakers are limited to a three (3) minute presentation. If participating via Zoom, please raise your hand using the Raise Your Hand feature or dial *9 (*6 to unmute).
CONSENT CALENDAR
Items on the Consent Calendar are considered routine and will be voted on in one motion unless a Council member or member of the public has a question or wishes to discuss an item. In that case, the item will be removed from the Consent Calendar and considered separately.
3. Presentation of the City of Sonora's Traffic Impact Mitigation Fund Report as presented for the fiscal year ended June 20, 2022 for public review; Christopher Gorsky, Administrative Services Director.
4. Consider adoption of Resolution 12-05-2022-C declaring the results of the Consolidated Special Municipal Election held on November 8, 2022; Tracy Skelly, City Clerk.
5. Consider approval of Amendment No. 1 to the MuniServices, LLC. contract which extends our existing contract for Sales and Use Tax Audit Services (SUTA) and Sales Tax Analysis and Reporting (STARS) for the City’s Bradley Burns and existing Special District Tax (Measure I) and adds the language for auditing services for Measure Y, as required by the California Department of Tax and Fee Administration and authorize the City Administrator to execute the contract amendment; Christopher Gorsky, Administrative Services Director. 2 CITY COUNCIL REGULAR MEETING - DECEMBER 05, 2022 PAGE 3 OF 3
6. Consider approval of the Preparatory and Administrative Agreements and Associated Resolutions to allow the California Department of Tax and Fee Administration (CDTFA) to administer the City’s Essential Services Transaction and Use Tax Ordinance and authorize the City Administrator to execute the agreements; Chris Gorsky, Administrative Services Director.
COMMUNICATIONS
7. Receive communications from Sierra Mac River Trips, Inc. regarding Tuolumne County Transient Occupancy Tax (TOT) proposed funding cut to Visit Tuolumne County.
8. Receive communications regarding Tuolumne County Evacuation Needs Assessment Community Meetings.
COUNCIL MEMBER/DEPARTMENT HEAD REPORTS
ADJOURNMENT
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator at City Hall (209) 532-4541, [email protected]. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II).
Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Administrator’s Office at 94 N. Washington Street, Sonora, CA 95370 during normal business hours (8:00 am - 4:00 pm, Monday through Friday, excluding holidays). The agenda and supporting public documents are also available on our City website www.sonoraca.com listed under the agenda/minutes link on the Government page. 3 CITY COUNCIL AGENDA REPORT
MEETING DATE: December 5, 2022
TO: City Council Members
FROM: Melissa Eads, City Administrator
SUBJECT: Supervisor David Goldemberg County Update
RECOMMENDATION
Receive an update from Tuolumne County District 1 Supervisor David Goldemberg.
DISCUSSION
District 1 Supervisor Goldemberg will present an update on County-wide issues to the City Council the first meeting of each month.
FISCAL IMPACT
No fiscal impact to the General Fund.
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CITY COUNCIL AGENDA REPORT
MEETING DATE: December 5, 2022
TO: City Council Members
FROM: Gerard J. Fuccillo, City Engineer
Chris Gorsky, Administrative Services Director
SUBJECT: Fiscal Year 2022 Traffic Impact Mitigation Report
RECOMMENDATION
City Staff recommends the release of the City of Sonora’s Traffic Impact Mitigation Fund Report as presented for the fiscal year ended June 30, 2022 for public review.
DISCUSSION
California Government Code Title 7. Division 1. Chapter 5. Section 66006. requires that a local agency requiring the payment of a fee in connection with the approval of a development project make available to the public certain information for each fund or separate account established by the collection of such fees within 180 days after the last day of each fiscal year.
The information available to the public shall include:
A brief description of the type of fee in the account or fund.
1. The amount of the fee.
2. The beginning and ending balance of the account or fund.
3. The amount of fees collected, and the interest earned.
4. An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
5. An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement and the public improvement remains incomplete.
6. A description of each interfund transfer or loan made from the account or fund.
7. The amount of refunds made.
The local agency shall review the information made available to the public at the next regularly scheduled public meeting not less than 15 days after this information is made available to the public.
The Fiscal Year 2022 Traffic Impact Mitigation Fund Report is set forth in Attachment A. Project information related to the Traffic Impact Mitigation Fund is listed in Attachment B. This report was made available to the public on November 18, 2022. A complete copy of the report is available for review at City Hall Administration located at 94 N. Washington Street Monday through Friday between the hours of 8:00 AM and 4:00 PM and on the City’s website.
ATTACHMENTS
Attachment “A” - FY2022 Traffic Impact Mitigation Fund Report Attachment “B” - Project Information Related to Traffic Impact Mitigation Fund Resolution 11-16-98-A
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Attachment A
Beginning Cash Balance July 1, 2021 1,216,114.74
Fees Collected 15,920.00
Interest Received 3,677.00
Transfer for Greenley Road Extension Project Analysis (175,000.00) Ending Cash Balance June 30, 2022 1,060,711.74
Less encumbered amount (Signalization Sanguinette/Old Wards Ferry) (353,650.00) Net Funds Availbale for Projects 707,061.74
Traffic Impact Mitigation Fees are collected pursuant to Chapter 3.50 of the Sonora Municipal Code established in 1991 and City Council Resolution 11-16-98-A which adopted Traffic Impact Mitigation Fees based on an Updated Study of County Wide Circulation Improvement Needs.
Traffic Impact Mitigation Fees for individual development projects are determined by the Community Development Director from Exhibit B (Fee Schedule) of Resolution 11-16-98-A. The number of new trips per day for the development project is determined from the Fee Schedule and multiplied by the escalated fee per trip at the time of the Building Permit application in accordance with Resolution 11-16-98-A.
There were no loans made from the Traffic Impact Mitigation Fund during Fiscal Year 2022.
There were no refunds made from the Traffic Impact Mitigation Fund during Fiscal Year 2022.
CITY OF SONORA
ANNUAL REPORT ON TRAFFIC IMPACT MITIGATION FUND
FISCAL YEAR 2022
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ATTACHMENT B
Fiscal Year 2021-2022 Traffic Impact Mitigation Fund Report This attachment addresses items 5) and 6) of the main report on the subject matter, and project expenditures listed on Attachment A
5) An identification of each public improvement on which fees were expended, and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
1. NONE
6) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, and the public improvement remains incomplete. Projects listed under the County-wide Traffic Impact Mitigation Fee Program which are within the County are programmed by the County, and those projects which are within the City are programmed by the City, all based upon available funding. For those incomplete projects on the list of improvements which are within the City, the following projects are scheduled based upon available funding, environmental, and anticipated property acquisition:
2. Other signalization projects and projects listed in the Traffic Impact Mitigation Fee program will be scheduled as traffic warrants are met and funding is available. 7 Item 3.
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CITY COUNCIL AGENDA REPORT
MEETING DATE: December 5, 2022
TO: City Council Members
FROM: Tracy Skelly, City Clerk
SUBJECT: Declaring the Results of the Consolidated Special Municipal Election held November 8, 2022
RECOMMENDATION
Adopt the Resolution 12-05-2022-C declaring the results of the Consolidated Special Municipal Election held on November 8, 2022.
DISCUSSION
On Tuesday November 8th, 2022, a Consolidated Special Municipal Election was held in the City of Sonora for the purpose of voting on the following ballot measure. Measure Y, the “Essential Services Transaction and Use Tax,” asked City Voters for Authorization to add a 1% Transaction and Use Tax for general city revenues The City’s election was consolidated with the Statewide General Election conducted by the Tuolumne County Clerk-Election’s Office which was responsible for conducting the canvass of all votes cast and certifying the election results.
FISCAL IMPACT
There is no fiscal impact with the Council adopting the resolution declaring election results. The Tuolumne County Clerk-Election’s Office will invoice the City for our share of election costs for conducting a consolidated election which was included in this year’s operating budget.
ATTACHMENT
Resolution 12-05-2022-C
Exhibit “A” Certified Election Results
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RESOLUTION No. 12-05-2022-C
A RESOLUTION OF THE SONORA CITY COUNCIL RECITING THE FACTS OF THE
CONSOLIDATED SPECIAL MUNICPAL ELECTION HELD ON TUESDAY
NOVEMBER 8, 2022. DECLARING THE RESULTS AND OTHER MATTERS
REQUIRED BY LAW
WHEREAS, on November 8, 2022, a special municipal election (the “Election”) was held and conducted in the City of Sonora, California (the “City”) as required by law, and:
WHEREAS, the Election was consolidated with the statewide general election and was conducted by the County of Tuolumne (the “County”); and WHEREAS, the notice of the Election was given in time, form and manner provided by law; the voting precincts were properly established; the election officers were properly appointed; and that in all respects the Election was held and conducted, and the votes were cast, received and canvassed and the returns made and declared in time, form and manner as required by provisions of laws of the State of California relating to general law cities; and
WHEREAS, the Tuolumne County Registrar of Voters canvassed the returns of the Election and has certified the results to the City Council; and WHEREAS, the City Elections Official declared and certified to the City Council the official results received, which are attached hereto and incorporated herein as Exhibit “A” (the “Certified Statement of the Vote”)
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Sonora does hereby Resolve, Declare, Determine and Order as follows:
Section 1: The whole number of ballots cast in the City at the Election was one thousand seven hundred sixty-one (1,761).
Section 2: The number of votes given at each precinct and the number of votes given in the City for and against each measure are attached as Exhibit “A.” Section 3: The following measure was submitted to the voters of the City (“Measure Y”):
“The City of Sonora Essential Services Measure: Shall the measure to maintain the City of Sonora essential services such as Police, Fire, Street and Pothole Repair, and other core services by establishing a 1% sales and use tax (“Sales Tax”), providing the City of Sonora approximately $3.9 million dollars annually until ended by City voters, be adopted?”
Section 4: The City Council does declare and determine that, as a result of the Election, a majority of voters voting on Measure Y did vote in favor, and therefore, Measure Y passed. 16 Item 4.
Section 5: The City Clerk, or designee, shall enter into the records of the City Council, a statement of the results of the Election, showing:
(1) The whole number of ballots cast in the City;
(2) The measure voted upon;
(3) The number of votes given at each precinct for and against each measure; and (4) The total number of votes given for and against the measure.
Section 6: The City Clerk, or designee, shall certify the passage and adoption of this Resolution and enter it into the book or original resolutions.
PASSED, APPROVED AND ADOPTED as a Resolution by the Sonora City Council at a meeting held by the City Council on the 5
th day of December 2022, by the
following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Mark Plummer, Mayor
ATTEST:
Tracy Skelly, City Clerk, City of Sonora
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EXHIBIT "A"
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CITY COUNCIL AGENDA REPORT
MEETING DATE: December 5, 2022
TO: City Council Members
FROM: Chris Gorsky, Administrative Services Director
SUBJECT: Amendment No. 1 to the MuniServices, LLC. contract to Incorporate Measure Y Services
RECOMMENDATION
Consider approval of the amendment to the MuniServices, LLC. contract which extends our existing contract for Sales and Use Tax Audit Services (SUTA) and Sales Tax Analysis and Reporting (STARS) for the City’s Bradley Burns and existing Special District Tax (Measure I) and adds the language for auditing services for Measure Y, as required by the California Department of Tax and Fee Administration and authorize the City Administrator to execute the contract amendment.
DISCUSSION
On July 18, 2022, the City Council approved Ordinance No. 890 authorizing Measure Y, a 1% “Essential Services Transaction and Use Tax” to be place on the ballot. Voters of the City of Sonora approved the new district tax on November 8th, 2022. As part of the implementation of Measure Y, staff recommends the City Council extend the existing contract for Bradley Burns and Measure I Sales Tax Auditing and Reporting Services and add those services for the City’s new district tax, Measure Y.
MuniServices, LLC. has been providing these services to the City since 2008.
MuniServices provides audit services to more than 60 public agencies in California, representing approximately 70% of all sales tax revenues in the State. With over 40 years’ experience, MuniServices has developed extensive data management resources that facilitate finding new revenue sources for clients. MuniServices also offers a dedicated Government Relations team to provide policy, regulatory and legislative consulting support. Over the past 15 years MuniServices has gained extensive organizational knowledge of the City and consistently demonstrates a high level of professionalism and competence in this specialized field.
FISCAL IMPACT
The cost of these services will come from existing FY2022-23 budget. The budgeted expenditures for the SUTA services for FY22-23 is $5,000. The STARS service has a FY22-23 budget of $4,500. A full year’s expenditures will be budgeted during the FY2023-24 Budget process. 40 Item 5.
1 AMENDMENT 1 TO CONTRACT BETWEEN
CITY OF SONORA AND MUNISERVICES, LLC
THIS CONTRACT AMENDMENT No. 1 (“Amendment No. 1”) is entered into between City of Sonora, a municipal corporation of the State of California (“City”) and MuniServices, LLC, a Delaware limited liability company (“MuniServices”), (collectively the “Parties”).
The City and MuniServices agree as follows:
WHEREAS, the City and MuniServices, entered into a Consultant Services Agreement on March 3, 2008, (hereinafter “Agreement”) to perform, among otherthings, Sales and Use Tax Audit Services, Sales/Use Tax Analysis and Reporting Services, and Local District Tax Audit Services (“Services”);
WHEREAS, the Term of the Agreement was for a period of three (3) years, with three (3) successive one (1) year automatic renewal periods;
WHEREAS, the Term of the Agreement expired on or about March 3, 2014; WHEREAS, upon the expiration of the Term, MuniServices continued to perform the Services for the City and, in consideration for the Services performed, the City continued to pay MuniServices the rates set forth in each applicable Addendum to the Agreement; WHEREAS, the Parties seek to amend the Agreement to backdate the Term of the Agreement to memorialize the MuniServices’ continued performance of the Services set forth in each applicable Addendum to the Agreement and the City’s continued payment for said Services at the rates set forth in each applicable Addendum to the Agreement from March 3, 2014 to the Effective Date of this Amendment No. 1;
WHEREAS, the Parties seek to further amend and extend the Term of Agreement from the Effective Date of this Amendment No. 1 for an additional one (1) year period and thereafter, the Agreement shall automatically renew for successive one (1) year periods unless terminated pursuant to the Agreement;
WHEREAS, on or about August 2004, the Measure I Special Sales and Use Tax District was passed by the City, which became effective on or about January 1, 2005 (“District Tax”); WHEREAS, on or about November 2022, the Measure Y Essential Services Transaction and Use Tax was passed by the City, which shall become effective on or about April 1, 2023;
WHEREAS, the California Department of Tax and Fee Administration (collectively, or in the alternative, the “Agency” formerly known as, the State Board of Equalization) has taken the position that general references to “sales and use tax” in an agreement that authorizes access to tax records held by the Authority are insufficient to allow access to information relating the collection of the District Tax by the Agency;
WHEREAS, the City and MuniServices, without conceding the correctness of the 41 Item 5.
2 Agency’s interpretation, deem it prudent to comply with the interpretation by amending the Agreement to specifically refer to the District Tax; and WHEREAS, section 7056 of the California Revenue and Taxation Code imposes conditions on the access to information related to the collection of sales, transaction, and use tax by the Agency;
WHEREAS, the Parties further seek to amend Section 8.10 Notices of the Agreement to update where notices shall be sent to MuniServices;
WHEREAS, the Parties further seek to amend the SUTA Compensation section of the Sales and Use Tax (SUTA) Addendum to the Agreement to reduce the contingency fee rate of the compensation for the Sales and Use Tax Audit Service from a twenty-five percent (25%) contingency fee to a fifteen percent (15%) contingency fee; and WHEREAS, the Parties further seek to amend the District Tax Compensation section of the Local District Tax Audit Addendum to the Agreement to reduce the contingency fee rate of the compensation for the Sales and Use Tax Audit Service from a twenty-five percent (25%) contingency fee to a fifteen percent (15%) contingency fee.
NOW THEREFORE, in consideration of the promises and mutual covenants contained herein and to satisfy the requirements of section 7056, the Parties hereby agree to amend the Agreement as follows:
1. This Amendment No. 1 is effective as of November 1, 2022 (“Effective Date of Amendment No. 1”).
2. The Term of the Agreement is backdated from March 3, 2014 to the Effective Date of this Amendment No. 1 to memorialize MuniServices’ continued performance of the Services set forth in each applicable Addendum to the Agreement and the City’s continued payment for said Services at the rates set forth in each applicable Addendum to the Agreement.
3. The Amended Term of Agreement will become effective on the Effective Date of this Amendment No. 1 and shall continue for a one (1) year period and thereafter, the Amended Term of the Agreement shall automatically renew for successive one (1) year periods (“Amended Renewal Terms”) unless terminated pursuant to the Agreement;
4. Section 4 CONFIDENTIALITY of the Agreement is hereby amended to comply with state California Department of Tax and Fee Administration requirements to include the following:
Access to Transactions Tax, Sales Tax, and Use Tax Records “MuniServices qualifies under Section 7056 of the Revenue and Taxation Code to review (Bradley-Burns) confidential taxpayer information and documentation before the State Board of Equalization (“BOE”) or its successor agency, the Department of Tax and Fee Administration (collectively, or in the alternative, the “Agency”). MuniServices is hereby authorized by this Agreement to examine transactions tax, sales tax and use tax records of the Agency, including but not limited to the transactions and use tax that becomes effective on or about January 42 Item 5.
3 1, 2004, known as Measure I Special Sales and Use Tax District and the sales or transaction and use tax that shall become effective on or about April 1, 2023, known as Measure Y Essential Services Transaction and Use Tax pertaining to the ascertainment of those sales or transactions and use taxes to be collected for the City.
MuniServices is required to disclose information contained in, or derived from, those transactions, sales and use tax records only to an officer or employee of the City who is authorized by resolution or designated by the City Manager to examine the information.
MuniServices is prohibited from performing consulting services for a retailer during the term of this Agreement.
MuniServices is prohibited from retaining the information contained in, or derived from, those transactions, sales and use tax records, after this Agreement has expired.”
5. The City and MuniServices agree that although the scope of work generically refers to “sales and use tax” those references are meant to include “sales, transactions, and use tax” as part of the scope of work, including but not limited to any transactions and use taxes adopted after the effective date of the Agreement.
6. The Parties agree that the Agreement is applicable to all Sales, Transactions and Use Tax Ordinances currently enacted in the City and which may become enacted while the Agreement is in effect.
7. The Parties agree that an updated resolution in substantially the same form as the template provided as Exhibit A to this Amendment No. 1 will be presented to the City Council for consideration.
8. Section 8.10 Notices of the Agreement is hereby amended as follows:
If to Muniservices:
MuniServices, LLC
7335 N. Palm Bluffs Ave.
Fresno, CA 93711
Attn: Contracts Department
Email: [email protected]
9. The first sentence of the SUTA Compensation section of the Sales and Use Tax (SUTA) Addendum to the Agreement shall be deleted and replaced with the following:
MuniServices’ compensation for the Sales and Use Tax Audit Service is a fifteen percent (15%) contingency fee.”
10. The first sentence of the District Tax Compensation section of the Local District Tax Audit Addendum to the Agreement shall be deleted and replaced with the following:
43 Item 5.
4 “MuniServices’ compensation for the City District Tax Audit Services is a fifteen percent (15%) fee."
11. Except as herein modified, all other provisions of the Agreement, including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
12. In case of a conflict between the terms of this Amendment No. 1 and the terms of the Contract, the terms of this Amendment shall strictly prevail.
IN WITNESS WHEREOF, the Parties have caused this Amendment No. 1 to be executed by their duly authorized representatives as of the date set forth below.
DATED: , 2022
CITY OF SONORA MUNISERVICES, LLC
By:
Name:
Title: _________________________
By:
Carl Kumpf
CHIEF FINANCIAL OFFICER
APPROVED AS TO FORM
___________________________________
Office of the City Attorney
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CITY COUNCIL AGENDA REPORT
MEETING DATE: December 5, 2022
TO: City Council Members
FROM: Chris Gorsky, Administrative Services Director
SUBJECT: Preparatory and Administrative Agreements with the California Department of Tax and Fee Administration (CDTFA) and Resolution 12-05-2022-A and Resolution 12-05-2022-B for Implementation of Measure Y.
RECOMMENDATION
Consider Approval of the Preparatory and Administrative Agreements and Associated Resolutions to allow the California Department of Tax and Fee Administration (CDTFA) to administer the City’s Essential Services Transaction and Use Tax Ordinance and authorize the City Administrator to execute the agreements.
DISCUSSION
On July 18, 2022, the City Council approved Ordinance No. 890 and on November 8th, 2022, City of Sonora voters approved Measure Y, which authorized a 1% transaction and use tax to become effective April 1, 2023. In order to begin implementing the tax it is necessary for the City to complete several administrative steps, including entering into agreements with the California Department of Tax and Fee Administration (CDTFA) for the collection and administration of the tax.
The CDTFA is the state agency responsible for overseeing, collecting, and reporting of all sales tax throughout the State of California. In its role of administrator, the CDTDA collects sales taxes from retailers throughout the state and remits these revenues to the cities, counties, and special districts, as applicable. In order for the City of Sonora to begin receiving Measure Y revenues it is necessary to approve the following agreements as required by the CDTFA.
Council needs to approve:
1. A Preparatory Agreement allowing the CDTFA to setup the administration of the sales tax.
2. An Administration Agreement allowing the CDTFA to administer the sales tax.
3. Resolution 12-05-22-A authorizing the City Administrator to execute the agreements.
4. Resolution 12-05-22-B allowing the examination of confidential records by the city and the city’s sales tax consultant, MuniServices. LLC.
Resolutions for these purposes have been drafted along with the Preparatory Agreement and Administration Agreement with the CDTFA to perform all functions necessary to the administration and operation of the ordinance. These documents are shown as Attachments 1-4 along with a designation letter to the CDTFA.
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FISCAL IMPACT
The amount to be paid by the City for the department’s preparatory costs shall not exceed $175,000 as enumerated in the Revenue and Taxation Code Section 7272. Actual costs are usually in the range of $35,000 to $50,000. Such costs include all preparatory costs, including costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing of forms, developing instructions for the board's staff and for taxpayers, and other necessary preparatory costs which shall include the board's direct and indirect costs as specified by Section 11256 of the Government Code.
ATTACHEMENTS
Preparatory Agreement (Exhibit A)
Administrative Agreement (Exhibit B)
Resolution 12-05-22-A
Resolution 12-05-22-B
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1 AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE
CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Sonora, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:
1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.
2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance.
These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.
3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.
4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.
5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance.
City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.
6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.) 70 Item 6.
2 7. Communications and notices may be sent by first class United States mail.
Communications and notices to be sent to the Department shall be addressed to:
California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:
City of Sonora
94 N. Washington Street
Sonora, CA 95370
Attention: Administrative Services Director
Administrative Services Department
8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.
CITY OF SONORA CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Melissa Eads
(Typed Name)
City Administrator
(Title)
(Rev. 11/17)
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AGREEMENT FOR STATE ADMINISTRATION
OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of Sonora has adopted, and the voters of the City of Sonora (hereafter called “City” or “District”) have approved by the required majority vote, the City of Sonora’s Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows:
ARTICLE I
DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:
1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.
2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. 890, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.
ARTICLE II
ADMINISTRATION AND COLLECTION
OF CITY TAXES
A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance. 72 Item 6.
(Rev. 10/17) 2
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.
C. Transmittal of money.
1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.
2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.
3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.
D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.
E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear. 73 Item 6.
(Rev. 10/17) 3
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears.
The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.
G. Records of the Department.
When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.
H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.
ARTICLE III
ALLOCATION OF TAX
A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:
1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion 74 Item 6.
(Rev. 10/17) 4
of the Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.
2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies.
B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.
ARTICLE IV
COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate. A notification is complete when deposited in the mail. 75 Item 6.
(Rev. 10/17) 5
Communications and notices to be sent to the Department shall be addressed to:
California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to the City shall be addressed to:
City of Sonora
94 N. Washington Street
Sonora, CA 95370
Attention: Administrative Services Director
Administrative Services Department
Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above.
B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on December 5th, 2022. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.
C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal. 76 Item 6.
(Rev. 10/17) 6
ARTICLE VI
ADMINISTRATION OF TAXES IF THE
ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.
1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid.
2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-appealable.
B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:
1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.
2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.
3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.
4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing 77 Item 6.
(Rev. 10/17) 7
the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.
5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.
6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.
7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.
CITY OF SONORA CALIFORNIA STATE DEPARTMENT OF
TAX AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Melissa Eads
(Typed Name)
City Administrator
(Title)
78 Item 6.
RESOLUTION No. 12-05-2022-A
A RESOLUTION OF THE SONORA CITY COUNCIL AUTHORIZING THE CITY
ADMINISTRATOR TO EXECUTE AGREEMENTS WITH THE CALIFORNIA
DEPARTMENT OF TAX AND FEE ADMINISTRATION FOR THE IMPLEMENTATION
OF A LOCAL TRANSACTION AND USE TAX
WHEREAS, on July 18, 2022, the City Council approved Ordinance No. 890 amending the City’s municipal code and providing for a local transaction and use tax, and:
WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and
WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administration Agreement” prior to implementation of said taxes; and WHEREAS, the Department requires that the City Council authorize the agreements; NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Sonora that the “Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are hereby approved and the City Administrator is hereby authorized to execute each agreement.
THE FOREGOING RESOLUTION WAS INTRODUCED AND ADOPTED at a regular meeting of the City Sonora City Council held on the 5th day of December 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Mark Plummer, Mayor
ATTEST:
Tracy Skelly, City Clerk
79 Item 6.
RESOLUTION No. 12-05-2022-B
A RESOLUTION OF THE SONORA CITY COUNCIL AUTHORIZING EXAMINATION
OF SALES OR TRANSACTIONS AND USE TAX RECORDS
WHEREAS, pursuant to Ordinance Number 890 of City of Sonora (City), and Revenue and Taxation Code section 7270, the City entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and:
WHEREAS, the City Council of the City of Sonora deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected by the Department for the City pursuant to that contract; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SONORA HEREBY RESOLVES AS FOLLOWS:
Section 1. That the City Administrator and Administrative Services Director, or other officer or employee of the City designated in writing by the City Administrator to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the City by the Department pursuant to the contract between the City and the Department.
Section 2. The information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions and use taxes by the Department pursuant to that contract, and for purposes related to the following governmental functions of the City:
(a) Review of tax records to ensure proper allocation and remittance to the City. (b) Economic Development.
(c) Budget Planning
The information obtained by examination of Department records shall be used only for those governmental functions of the City listed above.
Section 3. That MuniServices, LLC is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the City by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and the MuniServices, LLC:
80 Item 6.
a) has an existing contract with the City to examine those sales or transactions and use tax records;
b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information. c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.
BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions and use taxes by the Department pursuant to the contract between the City and the Department and for those purposes relating to the governmental functions of the City listed in section 2 of this resolution.
Section 4.
That this resolution supersedes all prior resolutions of the City Council adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.
THE FOREGOING RESOLUTION WAS INTRODUCED AND ADOPTED at a regular meeting of the City Sonora City Council held on the 5th day of December 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Mark Plummer, Mayor
ATTEST:
Tracy Skelly, City Clerk
81 Item 6.
Sierra Mac River Trips, Inc
Marty McDonnell, President
PO Box 264
Groveland, California USA 95321
Tel: 970.218.0625
[email protected]
www.sierramac.com
November 27, 2022
The Honorable Kathleen Haff, Supervisor District 4
Tuolumne County Board Of Supervisors
The Honorable Anaiah Kirk, Supervisor District 3, Chair of Board of Supervisors The Honorable David Goldemberg, Supervisor District 1
The Honorable Ryan Campbell, Supervisor District 2
The Honorable Jaron Brandon, Supervisor District 5
County Administrative Officer Tracie Riggs
Cc: Melissa Eads, City Administrator, City of Sonora
2 South Green Street Sonora, CA 95370
Transient Occupancy Tax (TOT) Proposed Funding Cut to Visit Tuolumne County or Contract Bid Dear Ms. Haff and fellow members of the Tuolumne County Board of Supervisors, Visit Tuolumne County (VTC) has proven to be an outstanding service to our business community promoting tourism for nearly 40 years. Please continue to support them at the current level or more! VTC is a significant asset to the effort promoting the tourist industry of our community. Please do not put the VTC contract out to bid or consider cutting funding.
I served on the Tuolumne County Chamber of Commerce (TCCC) Board and on the Board’s Executive Committee as Treasurer in the early 1980’s. The TCCC failed to embrace an adequate role as a promoter of local tourism which resulted in the formation of Tuolumne County Visitors Bureau (TCVB) or now known as VTC. I served on the TCVB’s founding Board of Directors and am exceptionally pleased with this organization’s work successfully promoting Tuolumne County as a tourist destination.
The VTC Team is a vital part of our business health! Cutting funding or putting the VTC contract out to bid would be an epic mistake!
My company contributes to the TOT and I believe these funds are well directed to the VTC. If anything, the percent that goes to the VTC needs to be increased.
Thank you for your service to our community,
Marty McDonnell, CEO/Owner, Sierra Mac River Trips
82 Item 7.
December 7
5:30-7:00 PM
Groveland Community Hall
Tuolumne County Evacuation Needs
Assessment Community Meetings
Join Us in Sonora, Groveland, or Online, and
share your comments on roadway evacuation needs!
PROJECT INFORMATION: https://bit.ly/TCTC_Evac
December 6
5:30-7:00 PM
Sonora Opera House
December 8
5:30-7:00 PM
Virtual Meeting (ZOOM)
83 Item 8.
Reduce
evacuation
congestion
Enhance
emergency
communications
Increase
wildfire risk
awareness
Support
vulnerable
populations
during
evacuations
EVACUATION
NEEDS ASSESSMENT
COMMUNITY
MEETINGS
Please join us to review evacuation
congestion improvement and
communication strategies to help Tuolumne
County improve evacuation strategies and
identify improvements for a more resilient
evacuation network!
Tuolumne County Transportation Council and Tuolumne County O ce of Emergency Services are collaborating to understand wildfire risk across the County, identify opportunities to increase evacuation tra c capacity, and enhance communication strategies for more e ective and
resilient evacuations in the event of a wildfire. We invite you to come share your thoughts and learn more about the study. We look forward to seeing you!
December 6
5:30-7:00 PM
Sonora Opera House
December 7
5:30-7:00 PM
Groveland Community Hall
December 8
5:30-7:00 PM
Virtual Meeting (ZOOM)
JOIN US IN SONORA, GROVELAND, OR ONLINE!
Tuolumne County Evacuation Needs
Assessment and Communication Strategies
Our Goals:
Tuolumne County Transportation Council
PROJECT WEBSITE:
https://bit.ly/TCTC_Evac
84 Item 8.