SOUTH GATE CITY COUNCIL
CONTINUED REGULAR CITY COUNCIL AGENDA
Thursday, July 14, 2022 at
5:00 p.m.
SOUTH GATE COUNCIL CHAMBERS
ZOOM & TELECONFERENCE
DIAL-IN-NUMBER 1 (669) 900-6833
MEETING ID: 859 1903 4296
HTTPS://US02WEB.ZOOM.US/J/85919034296
Call to Order/Roll Call With Invocation & Pledge
CALL TO ORDER:
Al Rios, Mayor
INVOCATION:
Steve Costley, Interim Director of Parks & Recreation
(COMPLETED 07-12-22)
PLEDGE OF ALLEGIANCE:
Darren Arakawa, Chief of Police
(COMPLETED 07-12-22)
ROLL CALL:
Yodit Glaze, City Clerk
City Officials
MAYOR CITY CLERK
Al Rios Yodit Glaze
VICE MAYOR CITY TREASURER
Maria del Pilar Avalos Gregory Martinez
COUNCIL MEMBERS INTERIM CITY MANAGER
Maria Davila Chris Jeffers Denise Diaz
Gil Hurtado
CITY ATTORNEY
Raul F. Salinas
Government Code Section 54953 permits the City Council of the City of South Gate to conduct its City Council meetings via teleconferencing for the benefit of the public and the members of the City Council. Pursuant to Section 54953 (b)(3), notice is hereby given that a member of the City Council will participate at the meeting
noticed herein, via teleconference at the following location: Vice Mayor Avalos, Aeropuerto Abelardo L. 1 Rodriguez, 22439 Tijuana, Baja California, Mexico. Pursuant to Section 54953(b)(3), the City has posted an agenda at the above teleconference location, which shall also be accessible to the public during the City Council meeting. Because the remote location is also located within City Hall where the regular meeting will be held, the public is encouraged to participate in the City Council Chambers where a majority of the remaining City Council will also be located.
Meeting Compensation Disclosure
Pursuant to Government Code Section 54952.3: Disclosure of compensation for meeting attendance by City Council Members is $650 monthly regardless of the amount of meetings.
Proclamations, Certificates, Introductions And Ceremonial Actions Public Hearings
Comments From The Audience
(Completed 07-12-22)
During this time, members of the public and staff may address the City Council regarding any items not listed on the agenda and within the subject matter jurisdiction of the City Council.
Comments from the audience will be limited to five (5) minutes per speaker; unless authorized by the Mayor, the time limit may not be extended by utilizing another member's time. There will be no debate or action on items not listed on the agenda unless authorized by law.
Note: The City Council desires to provide all members of the public with the opportunity to address the Council. Nevertheless, obscene language, comments intended to disrupt or interfere with the progress of the meeting or slanderous comments will not be tolerated and may result in ejection and/or may constitute a violation of South Gate Municipal Code Section1.04.110.
Reports And Comments From City Officials
(Completed 07-12-22)
During this time, members of the City Council will report on matters pertaining to their service on various intergovernmental boards and commissions as a representative of the City pursuant to Assembly Bill 1234. City Council Members will also have an opportunity to comment on matters not on the agenda.
Consent Calendar Items
Agenda Items
1,2, 3, 4, 5, 6, 7,
and
8 are Consent Calendar Items. All items including
Ordinances, Resolutions and Contracts, may be approved by adoption of the Consent Calendar, individually and collectively by one (1) motion. There will be no separate discussion of these items unless Members of the City Council, the public, or staff request that specific items be removed from the Consent Calendar for separate discussion and action.
Any motion to introduce or adopt an Ordinance on the Consent Calendar shall be: (1) a motion to waive the reading of the Ordinance and introduce the Ordinance or (2) a motion to waive the reading of the Ordinance and adopt the Ordinance, as appropriate.
1. Amendment No. 1 to Contract No. 2021-17-CC with Tetra Tech for Engineering Services for the Per- and Polyfluoroalkyl Substances (PFAS) Compliance Study for City 2 Water Wells — City Project No. 666-WTR
(PRESENTED AND COMPLETED 07-12-22)
The City Council will consider: (PW)
a
.
Approving
Amendment No. 1 to Contract No. 2021-17-CC
with Tetra Tech to
extend the contract term to December 31, 2022, to provide additional time to complete the Per- and Polyfluoroalkyl Substances (PFAS) Compliance Study for City Water Wells - City Project No. 666-WTR, at no additional cost; and b
.
Authorizing the Mayor to execute Amendment No. 1 in a form acceptable to the City Attorney.
2. Amendment No. 3 to Contract No. 3333 with Biggs Cardosa Associates for extension to complete environmental documents and obtain Caltrans approval for I710/Firestone On-Ramp Modification Project, City Project No. 354-ST
(PRESENTED AND
COMPLETED 07-12-22)
The City Council will consider: (PW)
a
.
Approving
Amendment No. 3 to Contract No. 3333
with BCA to extend the
contract term to December 30, 2022, to provide additional time to complete the preparation of the environmental documents and obtain Caltrans' approval for the I- 710/Firestone Southbound On-Ramp Modification Project, City Project No. 354-ST, at no additional cost; and
b
.
Authorizing the Mayor to execute Amendment No. 3 in a form acceptable to the City Attorney.
3. Agreement with MV Cheng & Associates for as-needed temporary staff services (PRESENTED AND COMPLETED 07-12-22)
The City Council will consider: (ADMIN SVCS)
a
.
Approving a Professional Services Agreement
(Contract _________)
with MV
Cheng & Associates for the procurement of professional financial and accounting staffing on an as-needed and temporary basis through December 31, 2022, in the amount not-to-exceed $115,000; and
b
.
Authorizing the Mayor to execute the Professional Services Agreement in form acceptable to the City Attorney.
4. Amendment No. 4 to Contract No. 2020-22-AC with ClientFirst for continued IT Project management services
(PRESENTED AND COMPLETED 07-12-22)
The City Council will consider: (ADMIN SVCS)
a
.
Approving
Amendment No. 4 to Contract No. 2020-22-AC
with ClientFirst
Technology Consulting, LLC, retroactively effective April 1, 2021 through September 30, 2022, for continued project management services for the implementation of the Technology Master Plan in an amount not-to-exceed $48,775; 3 b
.
Authorizing the Mayor to execute Amendment No. 4 in a form acceptable to the City Attorney.
5. Agreement with Human Services Association (HSA) for Senior Nutrition Program (PRESENTED AND COMPLETED 07-12-22)
The City Council will consider: (PARKS)
a
.
Approving an agreement
(Contract No._________)
with Human Services
Association ("HSA") for Senior Nutrition Program to provide Congregate Meals at the Margaret Travis Senior Center ("Senior Center"), and home delivered meals through the "Meals on Wheels" program; and
b
.
Authorizing the Mayor to sign the agreement in a form acceptable to the City Attorney; and
c
.
Delegating authority to the Director of Parks & Recreation, or his designee, to sign and submit any
additional documents.
6. Investment Report for the Quarter ending December 31, 2021 (PRESENTED AND
COMPLETED 07-12-22)
The City Council will consider receiving and filing the Quarterly Investment Report for the quarter ended December 31, 2021. (ADMIN SVCS)
7. Investment Report for the Quarter ending March 31, 2022 (PRESENTED AND
COMPLETED 07-12-22)
The City Council will consider receiving and filing the Quarterly Investment Report for the quarter ended March 31, 2022. (ADMIN SVCS)
8. Minutes
(PRESENTED AND COMPLETED 07-12-22)
The City Council will consider: (CLERKS)
a
.
Approving the Special Meeting minutes of May 17, 2022
b
.
Approving the Special and Regular Meeting minutes of May 24, 2022 c
.
Approving the Special Meeting minutes of June 14, 2022
Reports, Recommendations And Requests
9. Franchise Agreement with Universal Waste Systems, Inc. for Solid Waste Recycling, and Organics Collection and
Processing Services and Amendment No. 2 to Contract No. 2021-70-CC with HF&H Consultants, LLC
(PRESENTED AND COMPLETED 07-12-22)
The City Council will consider: (PW)
4 a
.
Approving an exclusive
Franchise Agreement (Contract No.
)
for Solid
Waste, Recycling, and Organic Collection and Processing Services (Franchise Agreement) with UWS for a 10-year contract term, beginning January 1, 2023, through and including December 31, 2033;
b
.
Approving the optional Used Oil and Used Oil Filter Program, and increase the solid waste first year franchise fee by 0.25 cents, from $24.21 to $24.46 for all residential customers;
c
.
Approving
Amendment No. 2 to Contract No. 2021-70-CC
with HF&H
Consultants, LLC., (HF&H) for Solid Waste Collector Transition Management Services for assistance with the implementation of the Franchise Agreement and services required for compliance with State requirements, in an amount not-to- exceed $76,600;
d
.
Appropriate $137,101 in SB 1383 Local Assistance Grant funds to Account No. 413- 733-51-6101 (Refuse Collection- Professional Services) to fund services necessary to implement SB 1383; and
e
.
Authorizing the Mayor to execute the Franchise Agreement and Amendment No. 2 in a form acceptable to the City Attorney.
10. Resolutions calling for a General Municipal Election on November 8, 2022 consolidated with Los Angeles County; approving regulations for Candidates for Elective Office pertaining to Candidate's Statements; and resolving a tie vote "by lot" using the Coin Toss Method approving regulations for Candidates' Statements, and resolving a tie vote by lot using the Coin Toss Method
(PRESENTED AND COMPLETED 07-12-22)
The City Council will consider: (CLERK)
a
.
Adopting a
Resolution
calling for the holding of a General Municipal
Election to be held on Tuesday, November 8, 2022, for the election of certain officers and requesting the Board of Supervisors of the County of Los Angeles to consolidate the election with any and all elections also called to be held on Tuesday, November 8, 2022, and requesting the Board to render specified services to the City relating to the conduct of a General Municipal Election to be held on Tuesday, November 8, 2022: and
b
.
Adopting a
Resolution
approving regulations for Candidates for Elective
Office pertaining to Candidate's Statements Submitted to the voters at the General Municipal Election to be held on Tuesday, November 8, 2022; and c
.
Adopting a
Resolution
to resolve a tie vote "by lot" using the Coin Toss
Method for Elective Offices in the event of a tie vote at the November 8, 2022, General Municipal Election: and
d
.
Authorizing the City Clerk to issue a notice of a General Municipal Election to be held on November 8, 2022.
11. Resolution reciting the facts of the Special Municipal Election on June 7, 2022 and declaring the results thereof
(PRESENTED AND COMPLETED 07-12-22)
The City Council will consider adopting a
Resolution
reciting the facts of the
Special Municipal Election held on Tuesday, June 7, 2022, declaring the results and such other matters as provided by law. (CLERK)
5 12. (Cont.) Resolution establishing procedures for conducting City Council and other public meetings
(PRESENTED AND COMPLETED 07-12-22)
The City Council will consider adopting a
Resolution
establishing procedures for
the conduct of City Council meetings and the public meetings of the City Council's associated legislative bodies. (CM)
13. Discussion on Ordinance amending Section 2.08.450 (License Fees and Permit Fees for Material Recovery Facilities) and adding Section 2.08.500 (Business License Fees Adjustment) of and to Chapter 2.08 (Business License Tax) and Resolution stating that ordinance shall not take effect until approved by vote of the electorate
The City Council will consider: (CM)
a
.
Adopting the attached
Ordinance
modifying Chapter 2.08 of the South
Gate Municipal Code in the manner summarized above; and b
.
Adopting the attached resolution, as necessary to comply with (i) state constitutional requirement that such an ordinance shall not take effect until approved by a vote of the electorate, and (ii) Election Code requirements pertaining to such an election.
Documents:
Item 13 Report 07142022.pdf
14. Master Cooperative Agreement with Metro for the West Santa Ana Branch Light Rail Project
(PRESENTED AND COMPLETED 07-12-22)
The City Council will consider: (PW)
a
.
Approving the Master Cooperative Agreement ("MCA")
(Contract No.
)
with
the Los Angeles County Metropolitan Transportation Authority as is necessary for the implementation of the West Santa Anan Branch Light Rail Project; b
.
Authorizing the Mayor to sign the Master Cooperative Agreement in a form acceptable to the City Attorney; and
c
.
Authorizing the City Manager or his/her designee to enter into any agreements, permits or other actions that are listed and planned within the MCA.
15. Discussion related to the City Clerk salary
(PRESENTED AND CONTINUED TO
07/26/2022)
The City Council will consider: (CM)
a
.
Providing guidance on whether the elected position of the City Clerk's salary and/or benefits should be adjusted effective at the start of the City Clerk's next term of office; and
b
.
Directing the City Attorney to return with a resolution based on such guidance to be presented at the City Council's July 26, 2022, Regular City Council meeting. 6 16. Amended and Restated Employment Agreement with Chris Jeffers as City Manager (PRESENTED AND COMPLETED 07-12-22)
The City Council will consider: (ATTY)
a
.
Approving an Amended and Restated Employment Agreement ("Agreement") (Contract No.
)
with Chris Jeffers as City Manager, effective July 1, 2022; and
b
.
Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney.
17. Warrants
(PRESENTED AND COMPLETED 07-12-22)
The City Council will consider approving the Warrant Register for July 12, 2022. (ADMIN SVCS)
Total of Checks: $ 3,102,046.33 Less: Voids $ (1,107,392.96)
Less: Employee Payroll Deductions $ (331,115.23) Grand Total: $1,663,538.14
Cancellations: 96884, 97369, 97429, 96542
Adjournment
I, Yodit Glaze, City Clerk, certify that a true and correct copy of the foregoing Meeting Agenda was posted on June 13, 2022, at 4:45 p.m., as required by law.
Yodit Glaze
City Clerk
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 Clerk's Office
8650 California Avenue, South Gate, California 90280 (323) 563-9510 * fax (323) 563-5411 * www.cityofsouthgate.org
In compliance with the American with Disabilities Act, if you need special assistance to participate in the City
Council Meetings, please contact the Office of the City Clerk.
Notification 48 hours prior to the City Council Meeting will enable the City to make reasonable arrangements to
assure accessibility.
7 Item No. 13
City of South Gate
CITY COUNCIL
AGENDA BNLL
For the Special Meeting of: July 14, 2022
Originating Department: City Manager's Office
City Manager: City Manager:
hris Je 4rs
SUBJECT: ORDINANCE AMENDING SECTION 2.08.450 (LICENSE FEES AND PERMIT FEES FOR MATERIAL RECOVERY FACILITIES) AND ADDING SECTION 2.08.500 (BUSINESS LICENSE FEES AJ)JUSTMENT) OF AND TO CHAPTER 2.08 (BUSINESS LICENSE TAX) OF THE SOUTH GATE MUNICIPAL CODE ON THE NOVEMBER 8, 2022,
REGULAR MUNICIPAL ELECTION FOR CONSIDERATION BY THE CITY'S VOTERS AT
SAID ELECTION
PURPOSE: This item was continued from the Regular City Council Meeting of July 12, 2022. To give a presentation and receive direction whether an ordinance should be placed on the City's upcoming General Municipal Election for voters to decide whether to approve (1) adjusting the business license fees for Materials Recovery Facilities located within the City of South Gate and (2) establishing an automatic adjustment every third year of business license fees within Chapter 2.08 (Business License Tax) of the City of South Gate Municipal Code.
RECOMMENDED ACTIONS: The City Council will consider:
a. Adopting the attached Ordinance modifying Chapter 2.08 of the South Gate Municipal Code in the manner summarized above; and
b. Adopting the attached resolution, as necessary to comply with (i) state constitutional requirement that such an ordinance shall not take effect until approved by a vote of the electorate, and (ii) Election Code requirements pertaining to such an election.
FISCAL IMPACT: There is limited fiscal impact of additional cost the City will incur by Los Angeles County for conducting the November 8, 2022, General Municipal Election in which voters will weigh in on electing two City Council Members, a City Treasurer, and a City Clerk. Should voters approve the proposed changes to the South Gate Municipal Code Chapter 2.08, the City would generate an estimated $150,000 to $200,000 annually from those businesses classified as Material Recoveiy Facilities and $30,000 in the CPI adjustments the remaining business license categories starting in 2024.
ANALYSIS:
1. Why an Ordinance may be needed: Pursuant to South Gate Municipal Code ("SGMC") Section
2. 08.020 (Purpose), the sole purpose of business license taxes is to raise money for the City's general fund. The business license tax rate charged to Materials Recovery Facilities appears to be below (perhaps substantially below) current market rates. Most other business license tax rates imposed by the City have not been adjusted for many years. This creates a significant disparity in the amount a similar 1 5234830.3-L235.0
8 business pays along with a negative effect on the City's general fund. Adjusting the business license tax rate to address these problems requires an ordinance passed by the City Council and approved by a majority of City voters.
2. Current fees and agreements: A Materials Recoveiy Facility is defined as a facility within the City which is operated for the purposes of collecting, handling, storing and/or processing solid waste (SGMC Section 2.10.725 (Material recovery facility)). Solid waste can range from normal trash, constniction materials, green waste, and other materials that are collected to be recycled or landfilled at a later point.
Recently, staff researched the business license taxes and business license fees assessed under SGMC Section 2.08.450 (License fees and permit fees for material recovery facilities) against businesses that operate Materials Recovery Facilities within the City. The City currently has six (6) such businesses.
Staff's review showed that rather than charging the taxes and fees at rates specified in Section 2.08.450, the City had, instead, entered into written agreements with those businesses to pay the City different amounts. These written agreements were permitted under the SGMC as a result of a 2005 change to
2.08.450 (B). The amounts called for in those agreements were likely fair to both parties at the time the agreements were entered into, but, given the passage of time, they may no longer be fair to the City.
The agreements all have varying terms and amounts the businesses will pay to the City for their business licenses. Those terms and rates are:
Businesses
Construction & Demolition Recycling
SA Recycling
Blue Diamond Materials
County Sanitation District
Green Waste Soil Technologies
USA Waste of California
Term Expiration
6/30/2021
l1/27/2017
12/1 1/2007
Perpetuity
9/10 /2038
6/30/2025
$1.40 per ton
$1.14 perton
2.5% per load
$1.80 plus CPI (per ton)
$1.32 per ton (CPI increase each 5 years)
Flat Fee -$400,000 (annually)
Within the agreements, there is little historic information as to how the methodology was applied to either the term or rate for the businesses. It is evident that the initial terms of half of the agreements have expired, but the businesses are simply paying the minimum business license fee provided under our schedule each year.
3. Rates charged by the City are below market rate: Staff believes the rates being paid under these agreements are below current market rates paid by Material Recovery Facilities in other cities. While staff has not been able to identify a single source survey to show what similar rates are for Material Recovery Facilities in the area, a recent study by HF&H showed such operations were paying more than $2.00 per ton on average. Those fees were adjusted on some regular basis by the CPI, as well. The rates reported by HF&H are consistent with other information obtained by staff. Staff checked with a business that operates several Material Recovery facilities in various Southern Califomia cities. That business is paying between $1.32 and $5 per ton for an average of $2.66 per ton. In addition, the City of Gardena reports that it imposes a $2 per ton fee which is increased annually by CPI.
Material Recoveiy Facilities have a significant impact upon the community in terms of wear and tear on streets and emissions. It would appear that the City may be shortchanged approximately $200,000 or more, aru'iually, based on previous amounts received under these current agreements. This annual 2 5234830.3-L235.0
9 shortfall will likely increase as current business fees paid in other communities continue to outpace those charged by South Gate.
4. Public vote is required to raise these taxes and fees. City Council does not have the ability, under its own authority, to adjust rates or add new rates. Article XIII C of the State Constitution - better known as Proposition 218, which was adopted by the state's voters in 1996 - requires that no new general tax may be imposed, and no existing general tax may be extended or increased, without voter approval.
Thus, such fees often become very outdated for most cities.
There is a time sensitivity to asking for this discussion. Such matters may only be submitted to voters at each regular municipal election unless a fiscal emergency is enacted by the legislative body. Those condition do not currently exist. The County is requesting all such measures be submitted to them before the end of July. Should we miss those deadlines, we will have to wait until 2024 before the City Council could again consider the item.
Staff has looked at several cities that have asked their voters to consider indexing business license fees to the CPI to keep the rates consistent with their present value. The cities researched have varying adjustment schedules such as annual or a time period. The Council may consider a time period of between 3 and 5 years for such scheduled increases. As an example, the fee may be adjusted by CPI in 2024 and then would not be adjusted again until 2027 or 2029 using the 3-5-year example. Staff suggests that any ordinance passed by the City Council should provide that the fees and taxes be adjusted every three (3) years starting in 2024.
5. The Need for Ongoing Periodic Adiustments to Business License Tax Rates: Overall, the business license fees have not been adjusted or reviewed since 1993, nearly 30-years ago. For perspective, the valueofasinglerevenuedollarinl994wouldnowneedtobe$1.97inrevenuereceivedin2022. Should voters approve a tax increase with a CPI adjustment, it would be prospective and not retroactive. Thus, permitting future adjustments based on CPI is designed to prevent that dollar from falling further behind in value or support to the general fund. Such an increase could not begin until 2024, at the soonest, given the set-up time to print and adjust schedules necessary for businesses to know what the underling rates are.
ATT ACHMENTS: A.
B.
Proposed Ordinance
Proposed Resolution
3 5234830.3-L235.0
10 ORDINANCE NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, AMENDING SECTION 2.08.450 (LICENSE FEES AND
PERMIT FEES FOR MATERIAL RECOVERY FACILITIES) AND ADDING SECTION 2.08.500 (BUSINESS LICENSE FEES ADJUSTMENT) OF AND TO CHAPTER 2.08 (BUSINESS LICENSE TAX) OF THE SOUTH
GATE MUNICIPAL CODE PERT AINING TO BUSINESS LICENSE TAXES
WHEREAS, the City of South Gate ("City") is a general law city, incorporated under the laws of the State of California; and
WHEREAS, the City provides an excellent quality of life with top-notch municipal services; and
WHEREAS, the ability of the City to provide those various municipal services depends upon funding derived through various unrestricted general revenue sources such as business license taxes; and
WHEREAS, Chapter 2.08 of Title 2 of the City of South Gate Municipal Code, which has not been significantly updated in over 25 years, contains some tertninology, language and rate applications that are outdated. This Ordinance will update certain vital sections to those applicable sections and tax rates, while keeping local business license tax rates generally lower than those in the surrounding southeast communities in similarly situated sihiations; and WHEREAS, in accordance with Article XIIIC of the California Constitution, the revised terminology, language and rates established under this Ordinance cannot be increased in the future unless the City's voters approve such an increase.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The City Council does hereby declare that the above recitals are true and current and incorporated herein by reference, and does hereby determine that the public health, safety, and general welfare of the City and residents can benefit by amending Chapter 2.08 of the South Gate Municipal Code.
SECTION 2. Subject to the conditions set forth in Sections 5 and 6 of this Ordinance, Section
2.08.450 of the South Gate Municipal Code is hereby amended to delete the existing subsection B and to add new subsections B and C as set forth in the attached Exhibit A.
SECTION 3. Subject to the conditions set forth in Sections 5 and 6 of this Ordinance, Section
2.08.500 is added, the text of which is set forth in the attached Exhibit B.
Page l of 5
5234194.1-L235.0 11
SECTION 4. This Ordinance is not intended to modify, and does not modify, Section 2.08.020 (Purpose) of the South Gate Municipal Code, which states in part that Chapter 1.08 of the South Gate Municipal Code is enacted solely for the purpose of raising revenue for general municipal purposes. Proceeds of the business license taxes generated under said Chapter 2.08 will be deposited into the General Fund of the City and can be spent for any lawful, municipal, unrestricted general revenue purposes.
SECTION 5. This Ordinance will impose, extend and/or increase a general tax imposed by the City. As required by Article XIIIC of the California Constitution, any such imposition, extension or increase may not take effect unless approved by a vote of the people (but may be repealed or amended without a vote of the people). Therefore, the City shall submit this Ordinance to the people of the City of South Gate in accordance with applicable law and pursuant to Section 6 below, so that they may vote to approve or disapprove this Ordinance and affirm that the following actions will not constitute an increase in the rate of a tax:
A.
B.
C.
D.
The restoration of the rate of the tax to a rate this no higher than that set by this Ordinance if the City Council has acted to reduce the rate of the tax.
An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification is not inconsistent with the provisions of Municipal Code Chapter 2.08.
The establishment of a class of person that is exempt or excepted from the tax or the discontinuation of an exemption or exception (other than the discontinuation of an exemption or exception specifically set forth in Chapter 2.08).
The collection of the tax imposed by Chapter 2.08, even if the City had for some period of time failed to collect the tax.
SECTION 6. This Ordinance will not take effect until ten days after the certification of its approval by a majority of the voters of the City voting at the General Municipal Election to be held on November 8, 2022, pursuant to Elections Code Section 9217. If this Ordinance is approved by a majority of the voters and becomes effective, the amended and restated provisions of Chapter 2.08 established by this Ordinance will take effect on January 1, 2023. If this Ordinance is not approved by a majority of the voters at that General Municipal Election, then this Ordinance shall have no effect.
SECTION 7. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each and every section, subsection, subdivision, sentence, clause, or phrase thereof, not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be declared invalid or unconstitutional.
SECTION 8. To the extent the provisions of the South Gate Municipal Code as amended by this Ordinance are substantially the same as the provisions of that Code as they read immediately prior to the adoption of this Ordinance, then those provisions shall be construed as continuations of the earlier provisions and not as new enactments.
5234194. I-L235.0 12
SECTION 9. The City Manager and his designees are hereby authorized and directed to take all steps necessary to place this Ordinance on the ballot for the November 8, 2022, General Municipal Election as contemplated above, and to take all other actions which they deem reasonably necessary to carry out the intent of this Ordinance.
SECTION 10. The City Clerk shall certify to the adoption of this Ordinance and shall cause a copy of the same to be published in a manner prescribed by law.
PASSED, APPROVED and ADOPTED this day of 2022.
CITY OF SOUTH GATE:
By:
Al Rios, Mayor
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
Raul F. Salinas, City Attorney
5234]94.i-L235.0 13
Exhibit A
Modifications to Section 2.08.450 of the South Gate Municipal Code
2.08.450 License fees and permit fees for material recovery facilities A. Business Permit Required. Prior to the issuance of a business license, the operator of a material recoveiy facility shall apply for and obtain a business permit. The fee for such a business peimit shall be as set forth in the South Gate fee resolution.
The business permit issued to the operator of the material recovery facility shall require compliance with the conditions and requirements set forth in Section 2.10.725(B) of this code.
B. Busincss Liccnsc Tax (Calcndar Year) and Gross Rcccipts TaxJpcrmit Fee (Quaitcrly).
Thc opcrator of a matcrial rccovcry facility shall pay to thc liccn'sc collcctor a busincss license tax in thc sum of sevent',o dollars on or beforc thc first day of January of each calcndar 'y'Car, pluS a grOSS rccClpTs (aX In tbO SulIIl Of fen pcrccnT Of tbC gro!:i!IIi rCCClp[5 collcctcd from thc opcration of thc scalc weighing thc solid waste for disposal at thc material rccovciy facility. Notwithstanding thc above, thc opcrator of a material recovery facility may pay thc city a pci'mit fee in an amount and under thc tcn'ns and conditions sct forth in a written agreement bctwccn thc opcrator and thc city, in licu of parting the gross receipts tax. Thc gross rcceipts tax or pcrmit fce establishcd in this subsection, or by writtcn agrccmcnt, as thc casc may be, shall bc payable quarterly during each business 11CCn!:IiC }'Car.
B. Business License Tax (Calendar Year) and Gross Receipts Tax/Permit Fee (Quarterly).
The operator of the material recovery facility shall pay to the license collector a business license tax in the sum of five hundred dollars on or before the first day of January of each calendar year, plus a fee of $2.30 per ton of Solid Waste processed at such facility. For purposes of this section, Solid Waste means putrescible and non-putrescible refuse, special waste, recyclable materials, construction and demolition debris, green waste, and organic waste this is handled, processed or brought to the facility by their own operations or third-parties. However, this fee shall not become effective upon a business which has an unexpired written in-lieu fee agreement prior to January 1, 2022. In those cases, if any, the new fee shall become effective upon the expiration of the agreement.
C. Written Agreement. The City Council is permitted to enter into an in lieu fee written agreement with a material recovery facility to pay a fee that is different than that specified in Section 2.08.450 (B) if the City Council determines the interests of the city would be served and both parties are willing to enter in such an agreement. However, in no case shall such an agreed upon fee be lower than the fee assessed under Section 2.08.450 (B) at any time during the life of said agreement.
5234194.1-L235.0 14
Exhibit A
New South Gate Municipal Code Section 2.08.500
2.08.500 Business License Fees Adjustment.
The business license rates provided under Chapter 2.08 will be subject to an automatic Consumer Price Index (CPI) adjustment every three (3) years beginning on January 1, 2024.
Each CPI adjustment increase will be calculated by computing the percentage upwards change in the aru"iual average, if any, in the CPI index for the previous three - year period ending in June of the prior year and multiplying that percentage change against the applicable business license tax rate placed upon any legally petamitted business within the city under Chapter 2.08. The Consumer Price Index used will be the Consumer Price Index - All Urban Consumers for Los, Angeles-Riverside-Orange County, CA, not seasonally adjusted, all items index, annual average, as published by the United States Department of Labor, Bureau of Labor Statistics, or any successor agency.
By way of example using hypothetical figures, the calculation to determine the CPI adjustment multiplier will be as follows:
1. CPI Annual Average ending June 2024 310
2. CPI Annual Average ending June 2021 280
3. Change in Index (Line I minus Line 2) 30
% Increase (30 divided by 280 =.107%) x $100 tax rate = $10.71 increase in the tax rate.
5234194.1-L235.0 15
RESOLUTION NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH
GATE, CALIFORNIA, SUBMITTING BALLOT MEASURE TEXT FOR THE CITY OF SOUTH GATE M[ATERIALS RECOVERY FEE
MEASURE TO THE VOTERS AT THE NOVEMBER 8, 2022,
GENERAL MUNICIPAL ELECTION; DIRECTING THE CITY
ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS; AND
DIRECTING THE CITY CLERK TO EST ABLISH REQUIREMENTS
FOR FILING PRIMARY ARGUMENTS AND REBUTTAL
ARGUMENTS REGARDING MEASURE
WHEREAS, pursuant to the requirements of the laws for the State of California, the City Council has called and ordered a General Municipal Election to be held in the City of South Gate on Tuesday, November 8, 2022, for the purpose of electing two City Council Members, the City Treasurer, and the City Clerk, and for the purpose of submitting to the voters at said election the ballot measure proposed herein ("Business License Tax Measure"); and WHEREAS, the Business License Tax Measure is being proposed to do two things: first, to raise the business license tax rates and solid waste processing fees imposed on Material Recovery Facilities under Section 2.08.450 of the South Gate Municipal Code, which have not been significantly raised for 25 years; and second, to add new Section 2.08.500 to the South Gate Municipal Code, to allow automatic increases eveiy three years, based on changes to the Consumer Price Index, to all South Gate Business License Taxes imposed under Chapter 2.08 of the South Gate Municipal Code; and
WHEREAS, The proposed ballot measure is as follows:
Business License Tax Measure. To assist in maintaining public safety, repair streets, maintain parks, services for seniors, and other general city services, shall the annual taxes and solid waste processing fees paid by Material Recovery Facilities be increased to $500 plus $2.30 per ton, and provide for increases every three years to all Business License Taxes based on cost of living increases, as measured by the Consumer Price Index, be adopted?
YES
NO
1 524]9i2.1-L235.0
16 WHEREAS, the City Council desires to submit to the voters in the November 8, 2022, General Municipal Election, this Business License Tax Measure, along with arguments and rebuttals submitted in the timeframe prescribed by the Elections Code; and WHEREAS, this tax measure must be approved by at least a simple majority of the electorate voting in the election to be effective (i.e., 50% plus 1 vote); and WHEREAS, whenever a municipal ballot measure is authorized, Elections Code, Section 9280 provides that the City Council direct the City Clerk to transmit a copy of the measure to the City Attorney and the City Council direct the City Attorney to prepare an impartial analysis of the measure, and direct that the City Clerk provide filing requirements for primary arguments for and against the measure and for rebuttal arguments; and WHEREAS, the City Council of the City of South Gate orders the following particulars regarding the completion of an impartial analysis and submittal of ballot arguments:
Impartial Analysis:
Section 1. The City Council directs the City Attorney to prepare an impartial analysis of the Business License Tax Measure showing the effect of the measure on the existing law and the operation of the measure.
Section 2. The analysis shall include a statement indicating the measure was placed on the ballot by the governing body.
Section 3. The analysis shall not exceed 500 words in length and shall be filed within fifteen (15) days of the adoption of this Resolution.
Primary Arguments:
Section 4. The City Council authorizes members of the City Council, collectively or individually, to file written arguments in favor of the Business License Tax Measure, accompanied by the printed name(s) and signature(s) of the author(s). The argument can be changed until and including the date fixed by the City Clerk after which no arguments for or against the Business License Tax Measure may be submitted to the City Clerk. The City Clerk shall follow Elections Code, Sections 9281 through 9287, in detetmining the printing of all arguments in favor and against.
Section 5. Any individual voter who is eligible to vote on the measure, or bona fide association of citizens, or a combination of voters and associations, may file a written argument in favor or against the measure.
Section 6. A primary argument shall not exceed 300 words in length.
Section 7. A ballot argument will not be accepted unless accompanied by the printed name(s) and signature(s) of the author(s) submitting it, or, if submitted on behalf of an organization, the 2 5241912.1-L235.0
17 name of the organization and the printed name and signature of at least one of its principal officers who is the author of the argument.
Section 8. No more than five signatures shall appear with any argument submitted. In case any argument is signed by more than five authors, the signatures of the first five shall be printed.
Section 9. The City Clerk shall include the following statement on the front cover, or if none, on the heading of the first page of the printed arguments: "Arguments in support or opposition to the proposed laws are the opinion of the authors."
Section 10. Printed arguments submitted to voters shall be titled either, "Argument in Favor of Measure" or "Argument Against Measure" accordingly, the letter or number, if any, designating the measure shall also be printed on the argument.
Rebuttal Arguments:
Section 11. When an argument in favor and an argument against the Business License Tax Measure have been selected by the City Clerk to be printed in the voter information guide, the City Clerk shall send a copy of the argument in favor of the measure to the authors of the argument against the measure and a copy of an argument against the measure to the authors of the argument in favor of the measure.
Section 12. The author or a majority of the author(s) of the argument relating to the measure may prepare and submit a rebuttal argument or may authorize in writing another person or person(s) to prepare, submit, or sign the rebuttal argument.
Section 13. A rebuttal argument shall not exceed 250 words.
Section 14. A rebuttal argument relating to the Business License Tax Measure shall be filed with the City Clerk no later than ten (10) days after the final filing date for primary arguments.
Section 15. A rebuttal argument relating to the measure shall not be signed by more than five authors or persons, shall be printed in the same manner as a direct argument, and shall immediately follow direct argument which it seeks to rebut.
WHEREAS, if more than one argument for or more than one argument against the Business License Tax Measure is submitted to the City Clerk within the time prescribed, the City Clerk shall select one of the arguments in favor and one of the arguments against the measure for printing and distribution to the voters. In selecting the argument, the City Clerk shall give preference and priority, in the order named, to the arguments of the following:
a)
b)
The legislative body, or member or members of the legislative body authorized by the body;
The individual voter, or bona fide association of citizens, or combination of voters and associations, who are bona fide sponsors or proponents of 3 5241912.1-L235.0
18 the measure;
Bona fide association of citizens;
Individual voters who are eligible to vote on the measure.
WHEREAS, the City Council has first priority to file and submit arguments for City Council sponsored ballot measures, wliereby the Mayor and/or others selected by the Mayor who are qualified to sign arguments under the Elections Code to file written arguments regarding the ballot measures sponsored by the City Council; and WHEREAS, in order to enable the City Clerk to determine whether an argument is from a bona fide association of citizens, an organization or association submitting an argument for or against the Business License Tax Measure shall submit with the argument a copy of one of the following:
e)
f)
g)
h)
Its aiticles of incorporation, articles of association, partnership documents, bylaws, or similar documents;
Letterhead containing the names of the organization and its principal officers;
If the organization or association is a primarily formed committee established to support or oppose the measure, its statement or organization filed pursuant to the Government Code Section 84101; In selecting argument from among bona fide associations of citizens, the City Clerk shall not consider the type of documentation submitted pursuant to subdivision (a) - (c), immediately above, or the form of the association.
WHEREAS, based on the time necessary to prepare the City Attorney's impartial analysis, permitting the 10-calendar-day public examination and the timing of the arguments and rebuttals, as provided in Division 9, Chapter 3, Article 6 of the Elections Code, commencing with Section 9295, for the November 8, 2022 election, the City of South Gate adopts the following deadlines in concert with the Los Angeles County Office of Elections:
July 12, 2022 City Council ordering City Attorney to prepare Impartial Analysis
July 27, 2022 City Attomey Impartial Analysis Due
July 28- August 6, 2022 10 day Public Examination Peiiod August 7 - August 16, 2022 Primary Arguments For or Against Measure August 17 - August 26, 2022 10 day Public Examination Period August 27 - September 5, 2022 Deadline for Rebuttal Arguments September 6 - September 15, 2022 10 day Public Examination NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South Gate, California, that the provisions and sections of this Resolution, appearing above and below, are adopted and shall apply to the General Municipal Election to be held on November 8, 2022; and 4 5241912.1-L235.0
19 BE IT FURTHER RESOLVED, the City Clerk is hereby directed to submit the ballot text to the qualified voters of the City of South Gate for the November 8, 2022 General Municipal Election as referenced above and as follows:
Business License Tax Measure. Shall the measure, entitled "Business License Tax Measure", which increases annual taxes and solid waste processing fees paid by Material Recovery Facilities (which have not been significantly raised in the past 25 years) to $500 plus $2.30 per ton, and to provide for increases every three years to all Business License Taxes based on cost of living increases as measured by the Consumer Price Index, be adopted?
YES
NO
The full text of the City of South Gate Business License Tax Measure Ordinance is attached as Exhibit "A": and
1. The City Clerk shall file a certified copy of this Resolution with the Los Angeles County Clerk and is hereby authorized to execute, submit, file, sign, communicate, and otherwise do whatever else is necessaiy to effectuate this General Municipal Election, and this ballot measure; and
2. The City Clerk is further directed to take all other administrative actions necessary to accomplish the orders set forth in this Resolution.
BE IT FURTHER RESOLVED, that in all particulars not recited by the Resolution, said election shall be held and conducted as provided by law for the conduct of general municipal elections; and
BE IT FURTHER RESOLVED, that the City Clerk shall certify to the adoption of this Resolution, which shall be effective upon its adoption. [Remainder of page left blank intentionally.]
5 5241912.1-L235.0
20 PASSED, APPROVED and ADOPTED this 14th day of July 2022.
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM
B7: (2A-#,jo@
Raul F. Salinas, City Attorney
CITY OF SOUTH GATE:
BY:
Al Rios, Mayor
6 52419i2.1-L235.0
21