South Gate City Council
June 23, 2026

SOUTH GATE CITY COUNCIL

CONTINUED REGULAR CITY COUNCIL AGENDA
Tuesday, June 23, 2026 at
6:31 p.m.

SOUTH GATE COUNCIL CHAMBERS
8650 CALIFORNIA AVE
SOUTH GATE, CA 90280
DIAL-IN NUMBER 1 (213) 338-8477
MEETING ID: 821 0595 8091
VIEW MEETING LIVE ONLINE AT:

HTTPS://YOUTUBE.COM/@SOUTHGATECA90280
City Officials
MAYOR,
Joshua Barron

CITY CLERK,
Yodit Glaze

VICE MAYOR,
Al Rios

CITY TREASURER,
Jose De La Paz

COUNCIL MEMBER,
Maria del Pilar Avalos

CITY MANAGER,
Rob Houston

COUNCIL MEMBER,
Maria Davila

CITY ATTORNEY,
Ra
ú
l F. Salinas

COUNCIL MEMBER,
Gil Hurtado

1 . VIEW THE MEETING LIVE ONLINE VIA YouTube:

South Gate, CA - YouTube
Please allow up to 24 hours after the meeting for the archive to be available.

2. LISTEN TO THE MEETING ONLINE VIA
ZOOM:
https://us06web.zoom.us/j/82105958091
To address the City Council press *9 to raise your hand and *6 to unmute yourself when instructed.

3. PARTICIPATE BEFORE THE MEETING by emailing the City Clerk at:
[email protected] no later than 4:00 p.m. on the day of the meeting. Please write "Public Comment" in the subject line.

4. ATTEND THE MEETING IN PERSON
*The disruption in service of any alternative method does not prelude the City Council or other legislative body from taking further action and moving forward on the agenda. 1 Meeting Schedule
The regular meetings of the City Council are held on the second and fourth Tuesday of each month, closed session business will usually commence at 5:30 p.m., when scheduled, and general business session will commence at 6:30 p.m.

Brown Act
Agendas are drafted to accurately state what the legislative body is being asked to consider.

The legislative body can take action on "all items" listed on the agenda and be in compliance with the open meeting laws. Under the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The governing body may direct staff to investigate and/or schedule certain matters for consideration at a future meeting.

City's Vision Statement
We envision a thriving, safe and inclusive community where everyone has the opportunity to access exceptional services, education and support to be resilient and live full, vibrant lives.

Public Communications
Public Comments on agenda items are limited to three (3) minutes. All comments are to be addressed directly to the Agency Members not to the members of the public.

Emails for public comment received prior to 4:00 pm on the day of the Council Meeting will be summarized by the City Clerk, not read in its entirety. A copy of the email will be provided to the City Council and will also be available at the City Clerk's Office for public review. A copy of each email will be recorded for public record and noted on the official minutes of tonight's meeting.

Call to Order/Roll Call
CALL TO ORDER:

Joshua Barron, Mayor
INVOCATION:

PLEDGE OF ALLEGIANCE:

ROLL CALL:

Yodit Glaze, City Clerk
Public Hearings
- None
Reports and Presentations
(Continued From 6/9/26 Meeting)

3. Potential Language Change of UUT Measure

The City Council will consider: (CM)

2 a. Selecting a Utility Users Tax rate of 8% or 9%, in place of the 7% rate reflected in the documents presented on April 14, 2026;

b. Adopting the Amended and Restated Resolution, submitting the revised ballot measure to the voters at the November 3, 2026 General Municipal Election, by the required two- thirds vote of the full Council under California Government Code section 53724(b);

c. Approving the revised proposed Ordinance for submission to the voters; and

d. Directing staff to transmit the adopted documents to the Los Angeles County Registrar- Recorder/County Clerk before the August 7, 2026
filing deadline.

Documents:

Item 3 Report 06092026 - Continuous.pdf
Comments From The Audience
During this time, members of the public may address the City Council regarding any items not listed on the agenda and within the subject matter jurisdiction of the City Council and not on this agenda. Comments from the audience will be limited to three (3) 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. The collective initial period of time for comments from the audience shall be limited to 45 minutes. Any speaker that did not get a chance to speak during this segment due to the 45-minute limitations will be able to speak at the end of the meeting prior to adjournment.

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/interfere, other actions which disrupt 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.

Consent Calendar Items
- None
Recommendations and Requests
- None
Adjournment

I, Yodit Glaze, City Clerk, certify that a true and correct copy of the foregoing Meeting Agenda was posted on June 18, 2026, at 2:40 p.m., as required by law.

Yodit Glaze
City Clerk

3 GENERAL NOTICE TO THE PUBLIC
The City Council adopted new rules relating to the conduct of the public meetings, proceedings, and business in the City of South Gate on July 12, 2022, (Resolution 2022-38- CC) and go into effect on August 1, 2022. Resolution #2022-38-CC is available at the City Clerk’s Office.

MEETING SCHEDULE
Regular meetings of the City Council are held on the second and fourth Tuesday of each month, closed session meetings will commence at 5:30 p.m. unless posted otherwise on its agenda. The regular City Council meetings will commence at 6:30 p.m. Agendas are available at the following locations:

City Clerk Office,
Public Notice Boards at City Hall, and on the
City’s
web page at https://www.cityofsouthgate.org
The Public can sign up to receive automatic notices of postings of agendas for the City Council or any other Commission or Board of the City of South Gate. Visit the City webpage and click on the Agenda & Minutes icon. That will take you the page where an individual can enter their email in the “Email Updates” box to register.

PUBLIC COMMENT/PARTICIPATION
Any person may request to address a legislative body during a public meeting. The Presiding Officer will call upon those present in the Council Chambers first. After all speakers in the Chambers have spoken, the Presiding Officer will call upon those participating via zoom or teleconference.

Speakers are limited to three (3) minutes on any item listed on the agenda, including public hearings. Under Comments from the Audience portion, speakers are also limited to a single three (3) minutes time limit. Comments from the Audience is initially limited to 45 minutes at each meeting. Any speaker still wishing to speak, that did not speak, will have an addition Comments from the Audience opportunity after the last business item is finished. The Presiding Officer may extend the time limit as long as there is no objection from the City Council as a body.

To ensure that the public is able to participate, the City provides the opportunity to submit their comments in person, virtually, email, phone call, mail and any other method which may become available. Methods of participation may be subject to change during other such times when a State of Emergency, Health Order or State Executive Order limits in-person participation.

CURFEW
In absence of a motion duly adopted by majority vote of the City Council, the Presiding Officer may adjourn the City Council meetings at 10:30 p.m. The Presiding Officer may ask the City Council if any agenda items listed should be continued or dealt with during the meeting. For those items to be continued, the City Council can direct the item be placed on the next City Council agenda or the current meeting may be adjourned to a time certain at which time the meeting shall be reconvened as an Adjourned Regular Meeting of the City Council and action 4 upon the published agenda continued.

STAFF REPORTS
As a general rule, staff reports. or other written documentation are prepared/organized with respect to each item of business listed on the agenda. Meeting agendas and staff reports are available at least 72-hours prior to the scheduled regular City Council meeting and a minimum of 24-hours prior to a Special City Council meeting. There are times when the City Council receives written material. revised material after the posting of agendas, these materials are become a public record and will be available for public view within 72-hours after the meeting in which they were received. Those materials and any other public document can be inspected in the City Clerk's Office located at 8650 California Avenue, South Gate.

SERVICES TO FACILITATE ACCESS TO PUBLIC MEETINGS
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. For further information, please contact the Office of the City Clerk at (323) 563-9510 or via email at
[email protected].
5 Oflic'e i:if the
Sotith Gaki Cit:i Cietls
JUN-'l 2026
FILED
gl"lf'
Item No. 3
Cig of South Gate

CITY COUNCIL

AGENDA BULL
Forthe Regular Meeting of'. June 9, 2026
Originating Department: City Manager's Office
DepartmentHead: ?ri('Airso{yt
Rob Houston
CifpManager: "J"/o"[joat
Rob Houston
SCT: CONSIDERATION OF TTIILITY USERS' TAX RATE OF 8 % OR 9% FOR THF, NOVEMBER 3, 2026, BALLOT MF,ASURE, TO ADDRF,SS Rli;C:URMNG COSTS

THAT CONTINUE TO OUTPACE GENERAL FUND REVENUES
PURPOSE: To ask the City Council to consider setting the proposed Utility Users Tax (UUT) rate at 8% or 9%, in place ofthe 7% currently written intothe draft Ordinance and ballot question, so the measute fully closes the General Fund structural deficit and creates capacity to rebuild reserves and restore reduced services. This report supplements the April 14, 2026, Agenda Bill on the UUT meastire and the May 26, 2026, FY 2026-27 Proposed Budget presentation.

RECOMMENDED ACTIONS: The City Council will consider:
a. Selecting a Utility Users Tax rate of 8% or 9%, in place of the 7% rate reflected in the documents presented on April 14, 2026;
b, Adopting the Amended and Restated Resolution, submitting the revised ballot measure to thevoters attheNovember3,2026, GeneralMunicipalElection,bytherequiredtwo-thirds vote of the full Council under California Government Code section 53724(b); c, Approving the revised proposed Ordinance for submission to the voters; and d. Directing staff to transmit the adopted documents to the Los Angeles County Registrar- Recorder/County Clerlc before the August 7, 2026, ffling deadline, SUMMARY: South Gate's costs continue to grow faster than its revenues, The curtent proposal places a 7% UUT beforevoters, generatingrougbly $9,0 million ayear. Basedonthe City's latest general fund forecast, that rate brings the Gcneral Futid close to balance but leaves residual operating deficits and thinreserves with little cushion for risk.

An 8% rate reaches stuctural balance by FY 2028-29. A 9% rateproduces a structural surplusthat would let the City rebuild the Budget Stabilization Reserve atid restote part of the service reductions adopted for FY2025-26 and FY 2026-27. Becausethe same election, ballot, and senior exemption apply atany ofthese rates, the choice ofrate is the single largestlever the City Council holds over the City's long-term fiscal health. Staff recommends the City Council direct that the measure be set at 8% or 9%.
l
6 FISCAL IMPACT: The fiscal effect of this item is the difference in recurring General Fund revenue the measure would raise. Compared with the 7% proposal, an 8% rate raises about $1.4 million more per year and a 9% rate raises aborit $3,0 million more per year, at full annual collection. Higher recurring revenue directly reduces the City's reliance on one-time reserves and lowers the risk of further service cuts in future budget cycles.

ANALYSIS: The City has been able to sustain a higli level of community services and retain quality City staff aiid service providers by actively pursuing and recovering "one-time" revenues to fill the City's growing structural deficit. During this time, revenues within the City's General Fund, sales tax, property tax, and Vehicle License Fees remained static, with some growth in property tax, but with limited or no growth in the other General Fund revenue sources. More recently, emergirignational economic conditions, includingtariff-telateduncertainties ai'id broader market volatility, present additional downside revenue risk for cities across California, Why costs keep outpacing revenues
The deficit is stuctural,, not a one-time gap. Since FY 2019-20, recurring costs have grown by roughly $11.5 million a year, with about $4.1 million of new pressure in FY 2026-27 alone (May 26, 2026 Proposed Budget presentation). The largest drivers are required pension contributions (CalPERS unfunded liabiIlity up about 85%, from $6.OM to $ll.lM), workers' compensation and liability insurance (up about 190%, from $2.OM to $5,8M), and health benefits (up about 42%).

Less visible costs add to the pressure each year, including contract escalators tied to inflation, energy and fuel, software subscription iricreases of 5 to 15 percent, aiid new stffite and federal mandates.

These pressures recur every year and rise with inflation, while the City's main revenues, property tax (constrained by Proposition 13), sales tax, aiid vehicle license fees, have grown slowly or remained flat. Emerging tariff-related and market unceitainty adds downside risk to those revenues. That gap between rising recurring costs and slow recurring revenue is what the TITUT is meant to close.

What the 7% rate achieves, and where it falls sliort The FY 2026-27 budget is tecbnically balanced but not stiucturally balanced; it relies on a $2,25 million draw from tlie Budget Stabilization Reserve, which falls to about $1,52 million as aresult.

At 7%, the forecast shows the General Fund near balance but witli residual operating deficits and an available fund balance that drops to about $2,5 million inFY 2027-28 before slowly recovering.

That leaves almost no margin to absorb a revenue downturn, a major claim, or a new mandate, The table below compares the tbtee rates using the City's adopted five-year forecast model. Dollar figures are rounded; "available fund balance" meaiis Uhe discretionai7 General Fund balance and excludes the policy-protected Ennergency Reserve.
2 7
%lcasurc
(current traft)
8171,
Annual UUT revenue, full year (FY
2027-28)
$9.OM $10.4M $12.OM
Added recurring revenue vs. 7%
Recurring operating margin, FY
2028-29
+$1.7M
+$1.4M/yr
+$3.1M
+$3.OM/yr
+$4.8M
Available fund balance - low point
(FY 2027-28)
$2.5M $4.2M $6.2M
Available fund balance - FY 2030-
31 $9.5M $15.6M $22.5M
Structural outcome (per forecast) Near balance;
residual deficits
persist
Structural
balance by FY
2028-29
Structural
surplus;
restoration
capacity
Source: 5-Year General Fxmd Forecast - UUT 7% / 8% / 9% scenarios,' HdL revenue projections.

Effect on residents
The table below uses the same illustrative household figures shown to the public in the UUT community education materials, applied to the 7%, 8%, and 9% options. The low-income senior exemption in the draft Ordinance applies at any rate, so the residents least able to pay remain protected regardless of the rate the City Council selects. $548 $38.38 $43.87 $49.35Sainple South Gate
household
Average California
horisehold
$560 $39.20 $44.80 $50.40
Monthly cost on a typical utility bill. Figures are illusttative estimates, consisrerit svrth the UUT comnumity educarion materials. A low-incoi>re senior exemption applies at eveiy rate.

Put in dollars, the choice between rates is modest at the household level. For a typical South Gate household, an 8% rate instead of 7% adds about $5.49 a month, or roughly $66 a year. A 9% rate adds about $10.97 a month, or roughly $132 a year. Each of those additional dollars stays local and goes toward closing the structural deficit and protecting services.

As a further way to ease the transition, Councilmember Rios has suggested offering residents a temporary discount on their water bills, funded by the Water Fund, to partially offset the cost of 3 8
the new tax, The Water Fund holds sufficient available balance to support such a program on a short-ternn basis, andthe Cotuicil could direct staffto return with a proposed structure and duration.

Capacity to restore services
The FY 2026-27 budget carries about $9.3 million in cumulative reductions over two years, including frozen police positions, reduced patrol minimums, the crossing guard and crime prevention programs, seasonal park and pool closures, and slower petmit and code enforcement response.

The five-year forecast does not assume the City reverses all of those cuts. It is built oii a $7,0 million restoration, phased in over FY 2026-27 and FY 2027-28, which still leaves roughly $2.3 million in reductions unrestored before any allowaiice for :tuture cost growth. At 7%, the forecast funds that $7.0 million restoration but leaves very little room for furtlier restoration aiid almost no cushion to absorb the cost increases that will keep coming, At 8%, the same $7.0 million restoration holds, with some added capacity to absorb those increases as they arrive, Only at 9% does the forecast create room to restore services beyond the $7.O million already assumed, and eventhenthe resultisworkableratherthancornfoitable.No scenario fullyreversesthe $9,3 million in cuts; the 9% rate is the only one that moves the City meaningfully back toward that goal wlffle keeping a usable reserve.

Key forecast assumptions
These projections rest on assumptions the Council should keep in view: HdL revenue projections with about 3% annual property tax growth; payoff of the 2005 Police Pension Obligation Bond in FY2027-28, savingroughly$2,0 millionayear; about $1,0 millionin insurance savings beginning FY 2027-28 if the City changes cairiers; 1% aru'uial UUT growth staiting FY 2028-29; aixd an assumed 6% salary turnover savings, These are reasonable planning assumptions, not guarantees, If any move against the City, the higher rate provides the buffer the 7% rate does not.

Procedural Considerations and Timing
Because the 7% rate is written into both the ballot question and the Ordinance, changing it is a substantive amendt'nent to the measure that only the City Council canmake, and only by the same two-thirds vote risedto place it, Council direction alone does not changethe measure; the rate takes effect only when the City Council adopts the resolution that carries it, Staff has prepared Resolutions and Ordinances at boUh 8o/o and 9%, so the Council caii select a rate and adopt the matching versions at this meeting and still file withthe County before the August 7, 2026 deadline.

ATTACHMENTS: A, Amended and Restated Resolution (8% version) B. Amended and Restated Resolutiori (9% version)
C. Revised Proposed Ordinance (8% version)
D. Revised Proposed Ordinance (9% version)
4 9
Attachment A
Agenda Bill 06/09/26
RESOLUTION NO.

CITY OF SOUTH GATF,

LOS ANGF,LES COUNTY, CALIFORNIA

RESOLUTIONOFTHE CITYCOUNCILOFTHE CITYOFSOUTHGATE,

CALIFORNIA, SUBMITTING BALLOT MEASURE TEXT FOR THE

UTILITYUSERSTAXMEASURETOTHEVOTERS ATTHENOVEMBER
3, 2026, GENERALMUNICIPALELECTION
WHEREAS, the City Councit oftlie City of South Gate ("City") wishes to preseritautility users tax ordinance ("Ordinance") to City voters;
WHEREAS, the Ordinance would impose a general tax on utility use to be conected by utility suppliers on utilities consumed in the City ("Utility Users Tax"), the revenues from which may fund pubhc safety, street maiiitenance, parks, or any other lawful purpose of the City; WHEREAS, the City Council wishes to presem the Ordinance to the voters in the general municipal election heM onNovember 3, 2026:,
WHEREAS, the City Council requests the services of the Los Angeles County Registrar- Recorder/County Clerk to conduct this election;
WHERF,AS, the City, despite significant improvements in its fiscal accountability, is experiencing an increase in service demands from a growing population-leaving the City, like many otlier cities in California, with inadequate funding to address essential public safety and service needs;
WHEREAS, the City has implemented a number of cost-saving measures, having reduced the nuiriber of employees, consolidated departments and become more efficient in its opetations; WHEREAS, the City of South Gate is in a Financial State of Emergency, having experienced a structural budget deficit of over $7 million in fiscal year 2025-26, which is being addressed only through the rise of non-recurring reserves and one-time measures, and further projects a continuing and worsening deficit projected to exceed $9 million in 2026-27, sttch that General Fund reserve levels will be significantly depleted absent corrective action; WHEREAS, without an immediate source of new revenue, the City will be forced to reduce essential services to the cornrnunity;
WHEREAS, maintaining priblic safety with a fully funded police depaitment, continuing to provide school crossing guards, maintaining parks and recreation services, senior services, neighborhood graffiti abatetnent progranxs, maintaining responsive plarining, building, and code enforcement services, and fixing streets and potholes, are essentials for our community;

10 WHEREAS, without the adoption and submission of a Utility Users Tax measure to the voters, the City will be required to implemetxt immediate and significant reductions to existing service Levels, including reductions affecting public safety operations, parks and recreation prograinming, community development services, public works maintenance activities, finaricial adininistration, andthe school crossing guard program, due to the insufficiency of ongoing General Fr'ind revenues;
WHEREAS, a Utility Users Tax measure will malce it possiMe for the City to improve its overall community services, for example by: hiring additional police officers to reduce emergency response times, fixing City streets to improve traffic flow and reduce congestion, fighting gangs and drugs by expanding neighborhood graffiti removal programs, supporting youth anti-gang and drug prevention programs, and after-school tutoring and mentoring programs; and

NOW, THERF,FORE, THF, CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SF,CTION 1. Call of General Municipal Election. Pursuant to the laws of the State of California applicable to general law cities, the City Council hereby calls and notices a general municipal election to be held onNovember 3, 2026 (the "'Election"), to consider the following measure:
[The remainder of this page puiposely left blank.]

11 Measure
"SOUTH GATE FISCAL EMERGENCY STREET

MAINTENANCE, YOUTH PROGRAMS, PARKS FUNDING
PROTECTION MEASURE. Shall an ordinance preventin@ cuts to City of South Gate services including maintaining streets and sidewalks; maintaining school crossing guards, parks / recreation programs, police 911 and support services, and other General Fund uses by establishing an 8% utility user tax, exempting low income seniors, annually providing approximately $10,400,000 until ended byvoters; requiring independent audits, public discLosure of all spending, local control, to benefit South Gate residents, be adopted?" Yes __
No
The futt Ordinance comprising this measure is attached hereto as Exhibit A and is incoiporated here by this reference, The Ordinance requires the approval of a simple majority (50% plus one) of those voting on it,
SECTION 2. Request that County Conduct Election. The City Council liereby asks the Los Angeles County Board of Supervisors ("Board of Supervisors") to authorize the Los Angeles County Registrar-Recorder / County Clerk ("Cointy Elections Official") to render all services necessaiy to conduct the Election. The City Council liereby asks the Board of Supervisors to consolidate the Election with any otber election the County Elections Official is to administer on November 3, 2026, and to order the Election to be conducted by the County Elections Official. (Elec, Code, §§ 10402, 10403.) The City Council acknowledges that the Election will be held and coiiducted in the mani'ier prescribed in Elections Code section 10418, The ballots to be used iii the election shall be in form and content as required by law.

The City Clerk is authorized and directedto work withthe County Elections Official andto procure and fuiish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia as needed to properly and lawfully conduct the Election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. The City of South Gate will reimburse LosAngeles Coutity forthe actual costs incurred in conducting the Election upon receipt of a bill stating the amount due.

Tlie notice of the time and place of holding the Election is hereby given, and the City Clerk and County Elections Official are authorized to give fuither notice of the Election as required by law.

SECTION 3. Implementation. Tlie City Clerkis directedto file certified copies ofthis Resolution with the Board of Supervisors, with a copy to the County Elections Official, (Elec, Code, § 10402,) The City Clerk is ftuatlier authorized and directed to perform all otlier acts necessary or required by law to implement this Resolution and related to the Election.

12 SECTION 4. Ballot Arguments.

A, The City Clerk shall set the deadline for submission of arguments in favor of or against the Ordinance and provide notice ofthat deadline. The City Clerk may do this incoordination with the County Elections Official, as necessary. In all respects, the process to choose these arguinents shall accord with Elections Code sections 9280 et seq, and 9600 et seq.

B. The City Council hereby authorizes Councilmembers and to prepare and file tl'ie written argument in s'upport of the measure on behalf of tlie City Corincil. (Elec, Code,§ 9282(b).)
C. Futther, the City Coiuicil hereby adopts the provisions of Elections Code section 9285(a) autliorizing rebuttal argument only as to arguments f'or the Election, Tlffs Subdivision 4(C) is repealed, and the provisions of section 9285(a) shall not apply, thereafter.

SECTION 5. Impartial Analysis. The City Clerk is directed to transmit a copy of the Ordinance to the City Attorney, who shall prepare an impartial analysis of the Ordinance in accordance with applicable law, The impartial analysis shall indicate the measure that was placed on the ballot by the City Council.

If the entire text of the Ordinance is not printed in the voter information pamphlet, the following shall be printed immediately below the irnpaitial analysis iii no smaller than 10-point type: "The above statetnent is an impartial analysis of Measure. The full text of Measure can be found online at cityofsouthzate.orz, If you desire the measure, please call the City Cletk's office at 323- 563-9510 and a copy will be mailed at no cost to you," SECTTON 6. (AQA. The adoption of this Resolution is exempt from the California Environtnental Quality Act (CEQA), Public Resources Code section 21000 et seq, and California Code ofRegulations, title 14, section 15000 et seq, (CEQA Guidelines), The calling of amunicipal election is not aprojectwithinthe meaning of CEQAGuidelines sectionl5378. Further, the general tax proposed by this Resolution is a government funding mechanism that does not involve any coinmitment to any specific project, which may result in a potentially significant physical impact on the environment, and thus adopting flffs Resolution is not a project under CEQA Guidelines section 15378(b)(4),
SECTION 7. Severability. If any section, si'ibsection, sentence, clause, phrase or portion of this Resolution or its application to any person or circumstance is for any reason held to be invalid or unconstitutional by the decision of any couit of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution or its application to other persons mid circumstances, The City Council hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase or portionthereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or poitions be declared invalid or unconstitutional and, to that end, the provisions hereof are hereby declared to be severable.

SECTION 8. Effective Date. The City Clerk shall certify the adoption of this Resolution, wlfflch shall be effective upon its adoption, aiid shall gi've notice of the measure to be voted on in the manner provided by law,

13 SECTION 9. In accordance with the provisions of California Government Code Section 53724(b), this Resolution shall only be effective if passed by a two-tl'ffrds vote (4 or more votes) of the City Council.

SECTION 10. Tlie City Clerk shall certify the adoption ofthis Resolution, which shall be effective upon its adoption.

PASSED, APPROVED, and ADOPTE,D this 9'h day of June 2026.

CITY OF SOUTH GATE:

By:

Joshua Barron, Mayor
ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

14 Attachment B
Agenda Bill 06/09/26
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION OFTHE CITY COUNCILOFTHE CjTY OF SOUTH GATE,

CALIFORNIA, SUBMITTING BALLOT MEASURE TF,XT FOR THE

UTILITYUSERSTAXMEASURETOTHEVOTERS ATTHENOVEMBER
3, 2026, GENERAL MUNICIPAL F,LECTION
WHEREAS, the City Council ofthe City of South Gate ("City") wishes to present autility users tax ordinance ("Ordinance") to City voters;
WHEREAS, the Ordinance would impose a general tax on utility use to be conected by utility suppliers on utilities consumed in the City ("Utility Users Tax"), the revenues from which may fund public safety, street maintenance, parks, or any other lawful purpose of the City; WHEREAS, the City Council wishes to present the Ordinance to the voters in the general municipal election held on November 3, 2026;
WHEREAS, the City Council requests the services of the Los Angeles County Registrar- Recorder/County Clerk to conduct this eIection;
WHEREAS, tlie City, despite significant improvements in its fiscal accountability, is experiencing mi increase in service demmids from a growing population-leaving the City, like many other cities in California, with inadequate funding to addtess essential public safety and service needs;
WHEREAS, the City has implemented a number of cost-saving measures, having reduced the number of employees, consolidated departments and become more efficient in its operations; WHEREAS, the City of Sorith Gate is in a Financial State of Emergency, having experienced a structutal budget deficit of over $7 million in fiscal year 2025-26, which is being addressed only tmough the use of non-recurring reserves and one-time measures, and further projects a continuing and worsening deficit projected to exceed $9 million in 2026-27, such that General Fund reserve levels will be sigi'iificantly depleted absent corrective action; WHEREAS, without mi immediate sorirce of new revenue, the City will be forced to reduce essential services to the community;
WHEREAS, maintaining public safety with a fully fiinded police departnnent, continuing to provide school crossing guards, maintaining parks and recreation services, senior services, neighborhood graffiti abatement programs, maintaining responsive planning, building, and code enforcement services, aiid fixing streets and potholes, are essentials for our cornmtmity; Pagelof5
15 WHEREAS, without the adoption and submission of a Utility Users Tax meamire to the voters, tlie City w'll be reqriired to implement immediate and significant reductions to existing service levels, including reductions affecting public safety operations, parks and recreation programn'iing, comx'nunity development services, public works maintenance activities, financial administration, and the school crossing guard program, dueto the insufficiency of ongoing General Fund revenues;
WHEREAS, a Utility Users Tax measure will malce it possible for the City to improve its overall con'imunity services, for example by: hiring additional police officers to reduce emergency response times, :[txing City streets to improve traffic flow and reduce congestion, figliting gangs and drugs by expaiiding neigliborhood graffiti removal programs, supporting youth anti-gang and drug prevention programs, and after-school tutoring and mentoring programs; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Call of General Municipal Election. Pursuant to the laws of the State of California applicable to general law cities, the City Council hereby calls and notices a general municipal election to be held on November 3, 2026 (the "Election"), to consider the following measure:
[The remainder of this page purposely left blanlc.]

16 Measure
"SOUTH GATE FISCAL EMERGENCY STREET

MAINTENANCE, YOUTH PROGRAMS, PARKS FUNDING
PROTECTION MEASURE. Shall an ordinance preventin@ cuts tO City Of SOuth Gate services including maintaining streets ano sidewalks; maintaining school crossing Buards, parks / recreation programs, police 91 I and support services, and other General Fund uses by establishing a 9% utility user tax, exempting tow income seniors, annua(ly providing
approximately $12,000,000 until ended byvoters; requiring independent audits, public disclosure of all spending, locaL control, to benefit South Gate residents, be adopted?" Yes __
No
The full Ordinance comprising this measure is attached hereto as Exhibit A and is incoiporated here by tMs reference, The Ordinance requires the approval of a simple majority (50% plus one) of those voting on it.

SECTION 2. Request that County Conduct Election. The City Council hereby asks the Los Angeles County Board of Supervisors ("Board of Supervisors") to authorize the Los Angeles County Registrar-Recorder / County Cletk ("County Elections Official") to render all services necessary to conduct the Election. Tlie City Council hereby asks the Board of Supervisors to consolidate the Election with any other election the County Elections Official is to administer on November 3, 2026, and to order the Election to be conducted by the County Elections Official. (Elec. Code, §§ 10402, 10403.) The City Council acknowledges that the Election will be held and conducted in the manner prescribed in Elections Code section 10418. The ballots to be used inthe election shall be in form and content as required by Law.

The City Clerk is authorized and directedto work with the County Elections Official and to procure and hirnish any aiid all official ballots, notices, printed matter and all supplies, equipment and paraphernalta as needed to properly and lawfully coriduct the Election, In all paiticulars notrecited in this Resolution, the election shall be held and conducted as provided by law for holding tminicipal elections. The City of South Gatewillreirnburse LosAngeles County for the actual costs incurred in conducting the Election upon receipt of a bill stating the amount due, The notice of the time and place of liolding the Election is hereby given, and the City Clerk and County Elections Official ate arithorized to give futher notice of the Election as required by law.

SECTION 3. Implementation, The City Clerkis ditected to file certified copies of this Resolution withthe Board of Supervisors, with a copy to the Co'unty Elections Official. (Elec. Code, e) 10402.) The City Clerk is further authorized and directed to perform all other acts necessary or required by law to implement this Resolution and related to tlie Election,

12 17
SECTION 4. Ballot Arguments.

A. The City Clerk shall set tlie deadline for submission of arguments in favor of or against the Ordinanceandprovidenoticeoftliatdeadline, TheCityC1erkmaydothisincoordinationwith the County Elections Official, as necessary. In all respects, the process to choose these arguments shall accord with Elections Code sections 9280 et seq, and 9600 et seq.

B. The City Council hereby authorizes Councilmembers and to prepare and file the written argument in support of the meastire on behalf of the City Council, (Elec.

Code,§ 9282(b).)
C, Further, the City Council hereby adopts the provisions of Elections Code section 9285(a) authorizing rebuttal argument only as to argiments for the Election. TMs Subdivision 4(C) is repealed, and tlie provisions of section 9285(a) shall not apply, thereafter, SECTION 5. Impartial Analysts. The City Clerk is directed to transtnit a copy of the Ordinance to the City Attorney, who shall prepare an impartial analysis of the Ordinance in accordance with applicable law. The impaitial analysis shall indicate tl'ie measure that was placed on the ballot by the City Council.

If the entire text of the Ordiiiance is not printed in the voter information pamphlet, the following sliall be printed immediately below the impartial analysis in no smaller than 10-point type: "The above statement is an impariial analysis of Measure. The full text of Measure can be found online at cifvofsouthgate.org. If you desire the measure, please can the City Clerk's office at 323- 563-9510 and a copy will be mailed at no cost to you," SE,CTION 6. CEQA. The adoption of this Resolution is exempt from the California Environmental Quality Act (CEQA), Public Resources Code section 21000 et seq. and California Code of Regulations, title 14, sectionl5000 et seq. (CEQA Guidelines). The calling of a municipal electionisnotaprojectwithinthemeaningofCEQAGuidelines sectionl5378.Further,thegeneral tax proposed by tlffs Resolution is a governn'ient funding.meclianism that does not involve any commitment to any specific project, wMch may result in a potentially significant physical impact on tlie environment, and thus adopting this Resolution is not a project under CEQA Guidelines section 15378(b)(4).

SECTION 7. Severability. If any section, subsectiorx, sentence, clause, phrase or poition of this Resolution or its application to any person or circumstance is for any reason held to be invalid or unconstitutional by the decision of any corirt of competent jurisdiction, such decision shall not affect the validity of the remaining poitions of this Resolution or its application to other persons aiid circumstances, The City Council hereby declares that it would have adopted tliis Resolution and each section, subsection, sentence, clause, phrase orportion thereof irrespective ofthe fact tliat any one or more sections, subsections, sentences, clauses, phrases, or poitions be declared invalid or unconstitutional and, to that end, the ptovisions hereof are hereby declared to be severable.

SF,CTION 8. Effective Date. The City Clerlc shall certify the adoption of this Resotution, which shall be effective upon its adoption, and shall give notice of the 'measure to be voted on in the manner provided by law.

18 SECTION 9. In accordance with the provisions of California Government Code Section 53724(b), this Resolution shall only be effective if passed by a two-thirds vote (4 or more votes) of the City Council.

SECTION 10. The City Clerk shall certify to the adoption of this Resolution, which shall be effective upon its adoption.

PASSED, APPROVED, and ADOPTED this 14th day of April 2026.

CITY OF SOUTH GATE:

By:

Joshua Barron, Mayor
ATTEST:

B7:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

B7: p3AVI'l'
Raul F. Salinas, City Attorney

19 Attachment C
Agenda Bill 06/09/26
ORDINANCE NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

ORDINANCE OF THE PEOPLF, OF THE CITY OF

SOUTH GATE ADOPTING A UTILITY USERS TAX
WHEREAS, the City of South Gate ("City"), despite significant improvements in its fiscal accountability, is experiencing anincrease in service demands from a growingpopulation, leaving the City, like many others in California, with inadequate funding to address essential public safety and service needs;
WHH,REAS, the City has implemented anutnber of cost-saving measures having reduced the number of employees, consolidated departtnents, and become more efficient in its operations; WHERF,AS, the City is in a Financial State of Emergency, with a projected structural General Fund deficit of approximately $9.4 million in fiscal year 2026-27, following a structural imbalance in fiscal year 2025-26 that has been addressed only through the rise of non-recurring reserves and one-tinie :ineasures; and absent corrective action, General Fund reserves will be significantly depleted, iinpacting the City's ability to sustain ongoing services; WHEREAS, without an immediate source of new revenue, the City will be forced to reduce essential services to the comtnunity;
WHEREAS, maintaining public safety with a fully funded police department, contiinung to provide school crossing guards, n'iaintaining parks and recteation services, senior services, neighborhood graffiti abatement programs, maintaining responsive planning, building, and code enforcement services, and fixing streets and potholes, are essentials for our community; WHERF,AS, without the adoption aztd submission of a Utility Users Tax measure to the voters, the City will be required to implement immediate and significant reductions to existing service levels, including reductions affecting public safety operations, parks and recreation programming, community development services, public works maintenance activities, financial administration, and the school crossing guard program, due to the iiisufficiency of ongoing Genetal Fund revenues;
WHEREAS, a Utility Users Tax measure will make it possible for the City to improve its overall cornrnunity services, for example by: liiring additional police officers to reduce emergency response times, fixing City streets to improve traffic flow and reduce congestion, fighting gangs and drugs by expanding neighborhood graffiti removal programs, supporting youth anti-gang and drug prevention programs, aiid after-school tutoring and mentoring programs; and

NOW, THEREFORE, THE PF,OPLF, OF THE CITY OF SOUTH GATE, CALIFORNIA, DO HEREBY ORDAnN AS FOLLOWS.

20 SECTION 1. Chapter 2,79 (Utility Users Tax) is hereby added to Title 2 (Licenses - Business Regulations) of the City of South Gate Municipal Code to read as follows:

Section 2.79.010 Definitions
For tlie putposes ofthis chapter, the following words aixdphrases shall havethe meanings ascribed to them uriless otherwise noted:
"Ancillary telecommunication services" means services that are associated with or incidental to the provision, use or enjoyment of telecommunication services, including, but not limited to, tl'ie following services:
1, "Conference bridging service" means an ancillai7 service that Iinks two or more participants of an audio or video conference call and may include the provision of a telephone number. Conferettce bridging service does not include the telecommunication services used to reach the conference bridge,

2. "Detailed telecommunication billing service" means an ancillary service of separately stated information pertaining to individual calls on a customer's billing statement. 3, "Directory assistaiice" means an ancillaiy service of providing telephone number information, aiid/or address information.

4. "Vertical service" means an ancillary service that is offered in connection with one or more telecommunication services, whicli offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services.

5. "Voicemailservice"meansanancillaiyservicethatenablesthecustomertostore,sendor receive recorded messages. Voice mail service does not include any veitical services that the customer may need to use the voice mail service. "Ancillaiy video services" means services that are associated with, or incidental to, the provision or delivery of video services, including, but not limited to, electronic program guide services, recording services, search functions, or other interactive services or communications that are associated with or incidental to the provision, use or enjoyment of video services. "Billing address" means tlie mailing address oftlie service user where the service supplier submits invoices or bills for payment by the customer.
"City" meatis the City of South Gate, a municipal corporation, or the territory within its jurisdictional boundaries, as the context requites.
"Comtmmcation services" means telecommunication services, ai'xcillaiy telecominunication setvices, video services, and ancillary video services, "Electrical corporation" means as defined in Section 218 of the Public Utilities Code and shall be constued to include any eritity engaged in tlie selling or supplying of electricity to a service user.

It/
21 "Exemptwholesalegenerator"sliallhavethesamemeaningassetforthin42U.S.C. Sectionl6451 and tl'ie regulations thereunder.
"Gas" means natural or manufactured gas or any alternate hydrocarbon fuel, which may be substituted therefor.
"Mobile telecommunications service=' shall liave tlie same meaning and usage as set forth in 4 U.S.C. Section 124 and the regulations thereunder. "Month" means a calendar montli.
"Non-utility service supplier" means:

1. A service supplier, other than a supplier of electric distribution services to all or a significant portion of the city, which generates electricity for sale to others, and shall include, but is not limited to, any publicly owned electric utility, investor-owned utility, cogenerator, distributed generation provider, exemptwholesale generator, municipal utility district, federal power marketing agency, electric ri'uaal cooperative, or other supplier or seller of electricity; or

2. A commtinity choice aggregator, electric service provider (ESP), electricity broker, marketer, aggregator, pool operator, or other electricity supplier other than a supplier of electric distribution services to all or a significant portion oftlie city, which sells orsupplies electricity or supplemental services to electricity users within the city; or

3. A gas service supplier, aggregator, marketer, or broketa, other than a supplier of gas distribution services to all or a significant poition of the city, which sells or supplies gas or suppleiental services to gas users within the city.
"Paging service" means a telecommunication service that provides transmission of coded radio signals for tl'ie purpose of activating specific pagers; such transmissions may include messages and/or sounds,
"Person" means, without limitation, any natural individual, firm, trust, common law trust, estate, partnership of any kind, association, syndicate, club, joint stock company, joint venture, limited liability company, coiporatioii (including foreign, domestic, and non-profit), municipal district, mu'iicipal corporation (otl'ier than the City of South Gate), cooperative, receiver, trustee, or guardian.
"Place of primary use" means the street address representative of where a customer's use of a service primarily occurs, whichmust be a customer's residential street address or lirimai7 business street address.
"Post-paid telecominunication service" means the telecommunication service obtained by making a payment orx a communication-by-coinmunication basis either through the use of a credit card or payment mecliarusm such as a bank card, travel card, credit card, or debit card, or by a charge

17 22
made to a service number which is not associated witli the origination or termination of the telecommunication seryice.
"Prepaid telecommunicationservice" means the rightto accesstelecomm'unication services, whicli must be paid for in advance and which enables the origination of communications using an access niunber or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a lcnown an'xount. "Privatetelecornmunicationservice"means atelecommunication servicethatentitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless ofthemanner in which such channel or channels are connected, and includes switcliing capacity, extension lines, stations, and any other associated services tbat are provided in connection with the use of such charinel or cl'iaruiels. "Service address" means:
1, The location of the service user's place of prii'nary use, such as his or l'ier residential street address or business street address, or

2. The location of the service user's communication equipment from which the communication originates or terminates, regardless of where the communication is billed or paid, or

3. For prepaid telecommunication service, the location associated with the service niunber. "Service supplier" means any person, including the city, who provides telephone communication, electric, gas, water, or video services to a user of such services within the city. The term shall include any person required to collect and remit a tax as imposed by this chaptet, including its billing agent in the case of electric and gas service suppliers. "Service user" means a person required to pay a tax imposed by this chapter. "State" means the state of California.
"Streamlined Saies and Use Tax Agreement" means tlie multistate agreement commonly known and referred to as the Streanilined Sales and Use Tax Agreement, as it is amended from time to time.
"Tax adtninistrator" means the City Manager of the City of Soutl'i Gate, or his or her designee. "Telecommunication services" means the transmission, conveyance, or routing of yoice, data, audio, video, or any other information or signals to a point, or between or among points, whatever the technology used. "Telecommuriication services" includes such transmission, conveyance, or routing inwhich computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such services are referred to as voice over internet protocol (VoIP) services or are classified by the Federal Communications Commission as enhanced or value added, aiid includes video and/or data services that are fiinctionally integrated with "telecommunication services." "Telecomtminication

19)
23 services" iiiclude, but are not limited to, the following seryices, regardless of tlie manner or basis on whicli sucli services are calculated or billed: intrastate, interstate, and intemational telecounication services; ancillaiy telecommunication services; mobile telecomrminications service; prepaid telecommunication service; post-paid telecornrnunication service; private telecommunication service; paging service; 800 service (or any other toll-freenunnbers designated by the Federal Communications Commission); 900 service (or aixy ottier siinilar nun'ibers designated by the Fedetal Communications Con'imission for services whereby subscribers who call in to prerecorded or live service).
"Video programming" nieans those programming services commonly provided to subscribers by a video service supplier including, but not limited to, basic services, premium services, audio services, video games, pay-per-view services, video on demand, origination programming, or any other similar services, regardless of the content of such video programming, or the technology used to deliver such services, and regardless of the manner or basis on which such services are calculated or billed.
"Video services" means video prograinmuig and any and all services related to the providing, recording, delivering, use or enjoyment of "video programming" (including origination programming and programming using Internet Protocol, e.g., IP-TV and IP-Video) by a "video service supplier," regardless of the technology used to deliver, stote or provide such services, and regardless of the mariner or basis on whicli such services are calculated or billed, and includes ancillmy video services, data services, telecommunicatiori services, or interactive communication services that are functionally integrated with video services, "'Video service supplier" means any person, company, or service which provides or sells video prograinming, or provides or sells tlie capability to receive video programming, including any communications that are ancillmy, necessary or common to the ptovision, use or enjoyment of tlie video programining, to or from a business or residential address in the city, including but not limited to or from a business, home, condominium, or apartment, where some fee is paid, wliether direcfly or included in dues or rental cliarges for that service, whether or not public rights-of-way are used in the delivery of the video programming or communications. A video service supplier includes, but is not limited to: multi-channel 'video programtning distributors (as defined in 47 U.S,C, Section522(13)); openvideo systems (OVS) suppliers; suppliers of cabletelevision; master antenna television; satellite master antenna television; multichannel multipoint distribution services (MMDS); video services using internet protocol (e.g., IIP-TV and IP-Video, which provide, among other things, broadcasting and video on demand), direct broadcast satellite to the extent federal law permits taxation of its video services, now or in the future; video streaming services, and other suppliers of video services (including two-way communications), whatever their technology.
"VoIP (voice over internet protocol)" means the digital process of making and receiving real-time voice transmissions over any intemet protocol network, "800 seryice" means o "telecoinmunications service'5 that allows a caller to dial anurnber without incurring a charge for the call. The service is typically marketed under the name ('800," "855," "866," "877," and "888" toll-free calling, and any subsequent numbers the Federal Communications Comtnission may designate for such services.

24 "900 service" means an inbound toll "telecommunications service" purchased by a subscriber that allows the subscriber's customers to receive the subscriber's prerecorded annoruicement or live service. "900 service" does not include the charge for collection services provided by the seller of the "telecommunications services" to the subscriber, or service or product sold by the subscriber to the subscriber's customer. The service is typically inarketed under the name "900" service, and aiiy subsequent numbers the Federal Communications Conimission may designate for such SerVlCe.

Section 2,79,020 Communications Users Tax
A, Telecomtminication Services

1. There is hereby imposed a tax upon every person using telecommunication services in the city. The tax shall be at the rate of 8 percent of all charges made for sucli services and shall be collected from the service user by the telecommunication services supplier or its billing agent. There is a rebuttable presumption that telecommunication services, which ate billed to a billiiig or service address in the city, axe used, in wlxole or in part, withinthe city, arid such services are subject to taxationunderthis chapter, Ifthe billing address of the service user is different from the service address, the service address of the service user shall beusedto applythetax. As used in this sectioxi, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the telecotnrnunication services.
2, As used in this section charges for "telecommunication services" shall include, but are not limited to, charges for: connection, reconnection, termination, movement, or change of telecommunication services; late payment fees; detailed billing; central office and custoin calling features (including, but not limited to, call waiting, call forwarding, caller identification and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; universal service charges; regulatory, administrative and other cost-recovery charges; local number poitability charges; aiid text and instant messagiiig. "Telecommunication services" shall not include digital downloads tliat are not "ancillai7 telecommunication services," such as music, ringtones, games, and similar digital products.

B. Video Services

1. There is hereby imposed a tax upon every person rising video services in the city provided by a video service supplier. The tax shall be at the rate of 8 percent of the chatges made for such video services, and shall be collected from the service user by the video service supplier, or its billing agent.
2, As used in this section, "charges" shall include the value of any otlier services, credits, property of every kind or nature, or other consideration provided by the service user in excliange for video services. Charges for video services shall also include, but are not limited to, charges for the following:

25 a, Regulatory fees and surcharges, franchise fees, and access fees (including those to fund public, educational, and government video prograinming); b. Initial installation of eqriipment necessary for ptovision aiid receipt of video SefllCeS;
c, Late fees, collection fees, bad debt recoveries, and returned-check fees; d. Activation fees, reactivation fees, and reconnection fees; e. Video programming and video services;
f. Ancillary video services (e.g., electronic program guide services, recording functions, search functions, orother interactive services or co.uimunications thatare ancillary, necessaiy or common to the use or enjoyment of video services); g, Equipment leases (e.g., remote, recording or search devices, converters, remote devices);
h, Service calls, service protection plans, name changes, changes of services, and special services;
i. Leasing of channel or other access.

C. Mobile telecon'u'n'unications service shall be sourced irx accordance with the sourcing rules set foith in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124). Tlie tax administrator may issue and disseminate to communication service suppliers required to collect a tax under this chapter, sourcing rules for the taxation of other communication services, including, but not limited to, post-paid communication services, prepaid coniinunication services, and private communication services, providedthat such mles are based upon custom and common practice that further administrative efficiency and minimize multijurisdictional taxation (e.g., Streamlined Sales and Use Tax Agreement).

D. The tax administrator, from time to time, may issue and disseminate to communication service suppliers required to collect a tax under this chapte4 an administrative ruling identifying those communication services that are subject to the taxes levied by subsections A and B above, Fuither, the tax administrator, from time to time, may survey communication service suppliers to identify the components of communication services offered to customers within the city, ai'id the charges therefor. The tax administrator, thereafter, may issue and disseminate to such communication service suppliers an adininistrative ruling identifying components that (1) are necessaty for or comtnon to the teceipt, use Or enjoyment of taxed comtmmication service; or (2) ctu'rently are or historically have been included in a bundledrate for taxed communication service. Charges for sucli components shall be subject to the tax imposed by subsections A and B above, E. To prevent actual multijtirisdictional taxation of communication services subject to tax under this section, any service user, uponproof to the tax administratorthatthe service user has previously paid the same tax in another state or city on sucli communication services,

26 shall be allowed a credit against the tax imposed to the extent of such tax legally imposed in such other state or city; provided, however, the amount of credit shall not exceed the tax owed to the city under t's section,
F, The tax on communication services imposed by this section shall be collected from the service user by the service supplier or its billing agent, In the case of yideo service, the purchaser of tlie bulk video service (e.g., an apaitment owner) shall be the "service user," unless sucli service is resold to individual users, in whicli case the service user shall be the ultimate purchaser. The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator on or before the 25th day of the follo'w'ng month.

Section 2.79.030 Electricity Users Tax
A. There is hereby imposed a tax upon every person using electricity in the city, The tax imposed by this section shall be at the rate of 8 percent of the charges made for such electricity, atxd for any supplemental services or other associated activities directly related to and / or necessary for the provision of electricity to the service user, which are provided by a service supplier or non-utility service supplier to a service user.

B. As used in this section, "charges" includes charges for all services, components, and items that (1) are necessary for or common to tlie receipt, use, or enjoyment of electric service, or (2) currently are or historically have been included in a single or bundled rate for electric senice by a service supplier to retail customers. As used in this section, "charges" shall include the value of any other services, credits, property of every kind or natute, or other consideration provided by a service user in exchange for electricity or services related to the provision of electricity. "Charges"' include, but are not limited to, the following:

1. Energy charges;
2, Distribrition or transmission charges;

3. Metering charges;

4. Stand-by, reserves, firming, raniping, voltage suppoit, regulation, emergency, or other similar mii'iimuin charges for services;

5. Customer charges, late charges, service establisent or reestablishnnent charges, demand charges, fiiel or otlier cost adjustments, power exchange charges, independent system operator (ISO) charges, stranded investment or competitive transition charges (CTC), public-purpose-progtatn charges, nuclear decotnmissioning charges, trust transfer aniounts (bond finarxcing charges), franchise fees, franchise surcharges, annual and monthiy charges, and other chatages, fees or surcharges which are necessary for or common to the receipt, use, or enjoyment of electricity service; and

6. Charges, fees, or surcharges for electricity services or programs which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory

27 Comtnission, whether or not such charges, fees, or surcliarges appear on a bundled or line-item basis on a customer's bill.

C. Thetaxadministrator,fromtimetotime,,maysurveyelectricityservicesupplierstoidentify the unbundled billing components of electric retail service that they commonly provide to residential and other customers in the city, and the charges therefor, including those items that are mandated by state or federal regulatory agencies as a condition of providing such electricity service, The tax administrator, thereafter, may issue and disseminate to such electricity service suppliers an administrative ruling identifying those components and items which (1) are necessaiy for or common to the receipt, use or enjoyment of electricity service; or (2) currently are or historically have been included in a single or bundled rate for electricity service by a service supplier to retail customers. Charges for sucli components and items shall be subject to the tax imposed by subsectionA above.

D, As used in this section, "using electricity" shall not include an electrical corporation's or governi'nental agency's receiving of electricity for resale.

E, The tax on electricity provided by self-production or by a non-utility service supplier not reqr*ed by this chapter to collect the tax shall be collected and remitted as set forth in Section 7.29,045 of this chapter. All other taxes on charges for electricity imposed by this section shall be collected from the service user by the electric service supplier or its billing agent, The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administtator on or before the 25th day of the following month.

Section2.79.040 Gas Users Tax
A. Thereisherebyimposedataxuponeverypersonusinggasinthecity,,whichistransported and delivered through a pipeline distribution system. The tax imposed by this section shall be at the rate of 8 percent of the charges made for sucli gas, including all services related to the storage, transpoitation and delivery of such gas, B, There shall be excluded from tlie base to which the tax imposed by this section is applied:

1. Charges made for gas which is to be resold and delivered throrigh mains or pipes;

2. Charges made for gas to be used in the generation of electrical energy by an electrical corporation; and

3. Charges made by a gas public utility for gas used aiid consumed in the conduct of the gas priblic utility's busiriess,
C, As used in this section, "cliarges" shall ii'iclude charges for all services, components and items for gas service that (1) are necessary for or common to the receipt, use, or enjoyment of gas service; or (2) currently are or historically have been included in a single or bundled rate for gas service by a service supplier to retail customers, "Charges'5 shall include, but is not limited to, the following:

Page9of22
23 28
1, The commodity charges for purchased gas, or the cost of gas owned by the service user (including the actual costs attributed to drilling, production, liffiiig, storage, gathering, trunkline, pipeline, and other operating costs associated with the production, transmission, and delivery of such gas), which is delivered through a gas pipeline distribution system;
2, Gas transportatton charges, iiicluding iiiterstate charges to the extent not included in commodity charges;
3, Storage charges; provided, however, that a service supplier shall not be required to apply the tax to any charges for gas storage services when the service supplier cannot, as a practical matter, determine the jurisdiction in which such stored gas is ultimately used; but it shal! be the obligation of the service user to self-collect the atnount of tax not applied to any charge for gas storage by the service supplier and to remit the tax to the appropriate jurisdiction;
4, Capacity or demand charges, late charges, service establishment or reestablishinent charges, transition charges, customer charges, minimum charges, annual and monthly charges, and any other charges which are necessary for or comtnon to the receipt, use, or enjoyment of gas service; and,

5. Charges, fees, or surcliarges for gas services or programs mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees, or surcharges appear on a bundled or line-item basis on a custonner's bill.

D. As used in this section, "charges" shall include the vague of any other services, credits, property of every kind or nature, or other consideration provided by a service user in exchange for gas or services related to the delivery of gas.

E. The tax administrator, from time to time, may survey gas service suppliers to identify the unbundled billing components of gas retail service that they commonly provide to residential and other customers in the city, and the charges therefor, including those items that are tnandated by state or federal regulatory agencies as a condition of providing such gas service. The tax administrator may issue and dissetninate to such gas service suppliers an administrative ruling identifying those components and items which (1) necessary for or common to the receipt, use, or enjoyment of gas service; or (2) currently are or historically have been included in a single or bundled rate for gas service by a gas service supplier to retail customers. Charges for sucl'i components and items shall be subject to the tax imposed by subsectionA above.

F, The tax on gas provided by self-production or by a non-utility service supplier not required to collect a tax by this chapter shall be collected and remitted iii the manner set forth in Section 7,29,045 of this cliapter. All other taxes imposed Oil charges for gas by this section shall be collected from the service user by the gas service supplier or its billing agent, The atnount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator, on or before the 25th day of the following month.

29 Section2.79.045 Collection of Tax from Service Users Making Direct Purchase of Gas or Electricity
A. Any service user subject to a tax imposed by Section 7.29,030 or by Section 7,29,040 of this chapter, wliich produces gas or electricity fot self-use; whicli receives gas or electricity, including any related supplemental services, directly from anon-utility service supplier not required to collect a tax imposed by this chapter; or which, for any other reason, does not havethefull tax collected aiidremitted by its service supplier, anon-utility service supplier, or its billing agent on the use of gas or electricity in the city, including any related supplemental services, shall report that fact to the tax administrator aiid shall remit the tax due directly to the tax administtator within 30 days of such rise.

B. The tax administrator may requite such a service user to identify its non-utility service supplier and provide, subject to audit: invoices; books of account; or other satisfactoiy evidence documenting the quantity of gas or electricity used, including any related supplemental services, and the cost or price thereof. Ifthe service user is unable to provide such satisfactory evidence, or if the tax administrator concludes in his or her reasonable discretionthatthe costto calculatethetax isexcessive,tlie tax administrator inay determine the tax by applying tl'ie tax rate to the equivalent charges the service user would have incurrediftlie gas orelectricity used, including any related supplemental services, had been provided by the primary supplier of gas or electricity within the city, The tax administrator shall malce available rate schedules for this purpose, Section2.79.050 Water Users Tax
A, There is hereby imposed a tax upon every person using water in the city which is transported and delivered through a pipeline distribution systetn, The tax imposed by this section shall be at the rate of 8 percent of the charges made for such water and shall be collected from the service user by the water service suppliey or its billing agent.

B, As used in tliis section, "charges" shall apply to all services, components and items that (1) are necessaiy for or common to the receipt, use, or enjoyment of water service; or (2) currently are or historically have beeri included in a single or bundled rate for water service by a service supplier to retail customers, "Charges" sliall include, but is not limited to, the following:

1. Water coinmodity charges (potable and non-potable),

2. Distribution or transmission charges,
3, Melering charges,

4. Customer charges, late c,harges, service establishment 6r reestablishment charges, franchise fees, franchise surcharges, aimual and monthly charges, and other charges, fees and surcharges which are necessary for or common to the receipt, use, or enjoyment of water service, and

30 5, Charges, fees, or surcharges for water services or programs, wlffch are mandated by a water distiict or a state or federal agency, wliether or not such charges, fees, or surcharges appear on a bundled or line-item basis on a customer's bill, C. As used in this section, "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by a service user in exchange for water services.

D, The tax administrator, from time to time, may survey water service suppliers to identify tlie unbundled billing components of water retail service that they cominonly provide to tesidential and other customers in the city, and the charges therefor, iricluding those items tliat are n'iaiidated by a wholesale or retail water supplier or a state or fedezal agency as a condition of proyiding such water service. The tax administrator, thereaffer, may issue and disseminate to such water service suppliers an administrative ruling identifying those components and items which (l) are necessary for or common to the receipt, use, or enjoyment of water service; or (2) currently are or historically have been included in a single or bundled rate for water service by a service supplier to retail customers. Charges for such components and items shall be subject to the tax imposed by subsection A above.

E. There shall be excluded from the base to which the tax imposed in this section is applied charges forwater whichisto be resold and deliveredthrough a pipeline distributionsystem.

F, The tax on water service imposed by this section shall be collected from a service user by the water service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator on or before the 25th day of the following month,
Section 2.79.060 Effect of Comingling Taxable Items with Nontaxable Items Ifany nontaxable charges are combined with andnot separately stated fromtaxable service charges on a customer bill or invoice, the combined cliarge is subject to tax unless tlie service supplier identifies, by reasonable atid verifiable standards, the popions of the conxbined charge that are nontaxabIe and taxable through the service supplier's books and records kept intlie regular course of business, and in accordance with generally accepted accounting principles, and not created and maintained fot tax purposes, A service supplier has the burden to prove the proper apportionment of taxable m'id nontaxable charges. If the service supplier offers a combination of taxable and nontaxable services, and the charges are separately stated, then for taxation purposes, the values assigned the taxable and nontaxable services shall be based on its books and records kept in the regrular course of business and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. A service supplier has the burden to prove the proper yaluation of the taxable and nontaxable services,
Section2.79.070 Exemptions
A, Nothing in tis chapter shall be constnied as imposing a tax upon the city, or upon any person or service when imposition of such tax upon that person or service would be in violation of a federal or state statute, the Constitution of the United States or the Constitution of the State of Califomia,

21P
31 B. The taxes imposed by this chapter, shall not apply to any person who:
1, Is 65 years of age or older;

2. Resides at the service address as his or her primary place of residence; and

3. Has a combined gross income, including all taxable and non-taxabte income of all members of the household in which the person resides, that does not exceed tlie income threshold established by tlie TaxAdministrator pursuantto subdiyision (C) of this section; and
4, Has filed the application described in subdivision (D) of this section.

C. The Tax Adtninistrator shall establish, by administrative rule, the household income thresholds applicable to tlie exemption provided in subdivision (B) of tbis section. In establising such thresholds, the Tax Administrator shall use the income eligibility standards published by the California Public Utilities Commission for low-income utility assistance programs, as those standards are updated from time to time, with separate thresholds applicable to households of one or two persons and to households of three or more persons, In no event shall the threshold be set below the applicable CPUC standard in effect at the time of determination, Tlie Tax Administrator shall update the applicable thresholds annually, consistent witli any revision to the CPUC standards, and shall malce the current thresholds publicly available in English and Spanish.

D, Any person claiming an exemption under subdivision (B) of this section shall apply to the Tax Administrator on a form approved by the Tax Administrator. The application shall include a declaration under penalty of perjury of the facts quali:tying the applicant, including proof of age and documentation sufficient to establish the combined gross income of all household members forthe prior calendar year. An approved exemption shall remain iri effect unless the service user no longer meets the qualifying criteria, at wlnch point the service user shall notify the Tax Administrator in writing within 30 days of any change in qualifying status. The Tax Administrator shall require annual re-verification of eligibiIity. A service user who fails to timely notify the Tax Administrator of a change in qualifying status shall not be entitledto arefund oftaxes collected andremitted duting the period of ineligibility,
E. UponreqriestoftheTaxAdministrator,aservicesupplierornon-utilityservicesupplier,or its billing agent, shall provide a list of the names and addtesses of those customers which, according to its billing records, are deemed exempt from the taxes iinposed by this chapter, F. ThedecisionofthetaxadministratormaybeappealedpursuanttoSection7.29.170ofthis chapter. Application to the tax administrator and appeal to the City Council pursuant to Section 7,29.170 of this chapter are prereqriisites to a suit thereon.

2.7 32
Section 2.79.080 Substantial Nexus and Minimum Contacts For purposes of i+nposing a tax or establishing a duty to collect and remit a tax under this cliapter, "substantial nexus" aiid"n'iiiiimum contacts" shall be construed broadly in favor ofthe imposition, collection, and/or remittance of a tax to tlie fullest extent permitted by state and federal law, and as it may change from time to time by judicial interpretation or by statutory enactment. Any communication service (including VoIP) used by aperson with a service address in the city, which service is capable of terminating a call to another person on the general telephone network, shall be subject to a rebuttable presumption that "substantial nexus / ininimum contacts" exists for purposes of in'iposing a tax, or establishing a duty to conect and remit a tax, under this chapter. A service supplier shall be deemed to have sufficient activity in the city for tax collection and remittance purposes if its activities include, but are not limited to, any of the following: maintains or has within the city, directly or through an agent or subsidiary, a place of residence or business of any nature; solicits business in the city by employees, independent contractors, resellers, agents or other represeiitatives; solicits business in the city on a continuous, regular, seasonal or systematic basis by means of advertising broadcast or relayed from a transmitter with the city or distributed from a location with the city; or ad'veitises in newspapers or other periodicals printed and published within the city or tbrough materials distributed in the city by means other than the United States mail; or ifthere are activities performed in the city on behalf ofthe service supplier that are significantly associated with the service supplier's ability to establish and maintain a market in the city for the provision of communication services that are subject to a tax under tliis chapter.

Section 2.79.090 Duty to Collect and Remit
Setvice suppliers shall collect atid remit the taxes imposed by this chapter as follows:

A, The taxes shall be collected insofar as ptacticable at the same time as, and along wiUh, the charges made in accordance with the regular billing practice of a service supplier. If a service user pays a service supplier less than the :[ull amount of the charge and tax accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid, If a service user has notified the service supplier of refusal to pay the tax imposed on said cliarges, Section 7.29.130 of this chapter shall apply.

B, A service suppliet's duty to collect tax from a service user shall commence with the beginning of the first regular billing period applicable to the service user in whicli all charges normally included in such regular billing are subject to the provisions of this chapter. Where a person receives more than one billing, one or more being for different periods tlian another, the duty to collect shall arise separately for eacli billing period.

C. Each person required by this chapter to remit a tax shall file a return with the tax administrator on or before the due date, on forms approved by the tax a&ninistrator, The full amount of the tax owed shall be included with the return. The tax administrator is autborizedto require such additionalinforination as he orshedeems necessary to determine if the tax is being levied, collected, and remitted in accordance witli this chapter, Returns are due immediately upon cessation of business for any reason. Tlie tax adi'ninistrator, and its agents, shall maintain such returns as confidential information.

33 Section 7.29.100 Collection Penalties - Service Suppliers or Self-Collectors A. Taxes collected from a service user, or self-collected by a service user subject to Section

7.29.045 of this chapter, are delinquent ifnotreceived by the tax administrator on or before the due date. Should the due date occur on a weekend or legal holiday, the return must be received by the tax administrator on or before the first tegular working day following the weekend or Iegal holiday. A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by a service supplier in satisfaction of its obligations under this subsection sl'iall be considered timely if the transfer is initiated ori or before the due date, and the transfer settles into the city's account on or before the following business day, B, If a service supplier, or a service user subject to Section 7,29,045 of this chapter, fails to yetnit aiiy tax collected on or before the due date, said person shall pay a penalty for such delinquencies at the rate of 15% of the total tax that is delinquent in the remittance, and shall pay interest at the rate of three-quaiters of one (0.75) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent, until paid.

C, TodiscouragefraudandcoveranticipatedcoststlieCitywouldincurtoidentifyandremedy fraud, the tax administrator shall have the power to impose additional penalties upon persons required to collect and / or remit taxes pursuant to the provisions of this chapter for fraud ot gross negligence in collecting, repoiting, or remitting tax at the rate of 25% of the tax due,
D. Forcollectionpuiposesonly,everypenaltyimposedandsuchinterestthatisaccruedunder the provisioris of this section shall become apart of the tax required to be paid, B. Notwithstanding the foregoing, the tax administrator may, in his or her discretion, modify the due dates of this chapter to be consistent with any uniform standards or procedures that are mutually agreed upon by otherpublic agencies imposing autility userstax, or otherwise legally establislied, to create a central payment location or mechanism. The tax administrator may also enter into written agreements with a service provider to alter the administrative details of this ordinance as appropriate to facilitate tax collection and remittance without undue expense to the service supplier or the City provided, however that no such agreement may materially alter the amounts due to the City.

Section 7.29.110 Actions to Collect
Any tax imposed on a service user under this cliapter shall be deemed a debt owed by the service user to the city. Any such tax collected from a service riser wlffch has not been remitted to the tax administrator shall be deemed a debt owed to the city by the person requited to collect and remit and shall no longer be a debt of the service user. Any person owing money to the city under this chapter shall be liable to aii action brought in the name oftlie city forthe recoveryy of such atnorint, including penalties and interest as provided for in this chapter, along with any collection costs incurred by the city as a res'ult of the person's noncompliance with this chapter, including, but not limited to, reasonable attorney fees.

34 Section 7.29.120 Deficiency Determination and Assessment A. The tax administrator shall make a deficiency determination if he or she determines that aiiy person required to collect or self-collect taxes pursuant to this chapter has failed to collect and remit the proper amount of tax, including but not limited to, by improperly applying or failing to apply the tax to one or more taxable services or charges.

B. The tax administrator shall mail a notice of such deficiency determination to the person required to pay or remit the tax, which notice shall refer briefly to the amount of the taxes owed, plus interest at the rate of three-quaiters of one (0.75) percent per month, or any fraction thereof, on the tax due from the date the city should have received the tax, Within 14 calendar days after service of such notice, the person may make written request to the tax administrator for a hearing. If the person fails to request a hearing within that time, the ainount of the deficiency determination shall become a final assessment, and shall iinmediately be due and owing to the city.

C, If the person requests a hearing, tlie tax adtninistrator shall cause the matter to be set for hearing not later than 30 days after receipt of the request. The tax administrator shall mail notice of the time aiid place of the hearing to such person at leastlO calendar days before the hearing, and the notice may designate records that said person must produce at such hearing,
D. At the time fixed for the hearing, tlie tax administrator or his or her designee shall hear all relevant testimony and evidence, including that of any other interested paities. At the discretion ofthe tax administrator, the liearingmay be continued from timeto time to allow presentation of additional evidence. Within a reasonable time following the conclusion of tlie hearing, the tax adtninistrator or his or her designee shall issue a final assessment confinning, modifying, or rejecting tlie original deficiency determination, and shall mail a copy of such final assessment to the person owing the tax. The decision of the tax administrator may be appealed pursuant to Section 7,29.170 of this chapter, A hearing request to the tax administrator and an appeal to the city council pursuant to Section 7,29,170 of this chapter are prerequisites to a suit thereon, E. Paynnent of the final assessment shall become delinqrient if not received by the tax administrator on or before the 30th day following service of the notice of final assessment, The penalty for delinquency sliall be 15% on the assessment, along with interest at the rate of ttmee-quarters of one (0.75) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date of delinquency, until paid.

Section 7.29.130 Nonpayixig Senice Users
A. Wheneverthetaxadministratordeterrninesthataserviceuserhasdeliberatelywithheldthe amount of the tax from amounts remitted to a person required to collect the tax, or wheneverthe tax administrator deems itinthe best interest ofthe city, he or she may relieve suchperson of the obligationto collectthetaxes due under this chapter from certain named service users for specific billing periods. Whenever the service riser has failed to pay the arnoint of tax owed for a period of two or mote billing periods, the service supplier shall be relieved of the obligation to collecttaxes due. The service supplier shall provide the city

35 with the names and addresses of such service users and the ai'nounts of taxes owed under the provisions of tliis chapter.

B, In addition to the tax owed, the service user shall pay a delinquency penalty at the rate of 15% ofthe tax owed, aixd shall pay interest atthe rate of three-quarters of one (0.75) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the due date, until paid,
C, Thetaxadministratorsl'iallnotifythenon-payingserviceuserthatthetaxadministratorhas assuined the responsibility to collect the taxes due for the stated periods and demand payment of such taxes, including penalties and interest. Tlie notice shall be served on the service user by personal delivery or by deposit of the notice in the United States mail, postage prepaid, addressed to the service user at the address to whicli the person required to collect the tax addressed bills; or, should the service user have a change of address, to his or her last known address.

D. If the service user fails to remit the tax to the tax administrator within 30 days of service of the notice, the tax administrator may impose an additional penalty of 15% of the tax owed,
Section 7.29.140 Additional Powers and Duties of the Tax Administrator A. Thetaxadministratorshallhavethepowerandduty,andisherebydirected,toenforceeach and all of tlie provisions of this chapter,
B. The tax adi'ninistrator may adopt administrative rules and regulations not inconsistent with provisions ofthis chapterto interpret, clarify, carry out and enforcethe payment, collection and remittance of the taxes heyein imposed, A copy of such administrative miles and regulations shall be available for inspection in the tax administrator's office.

C. To ensure compliance with this chapter, the tax administ'rator may audit any person required to collect and / or reinit a tax prirsuant to this chapter, The tax adinistrator shall notif'y said person of such an audit in writing. In the absence of fraud or other intentional misconduct, the audit period of review shall not exceedthree years next preceding the date of service of notice of audit. Upon completion ofthe audit, the tax administrator n'iay make a deficiency determination pursuant to Section2.79,120 of this chapter for all taxes, penalties and intetest owed, as evidenced by information provided by such person to the tax administrator. If said person is unable or unwilling to provide sufficient records to enable the tax admiiiistrator to verif5r compliance with this chapter, the tax administrator may make areasonable estimate ofthe deficiency. Saidreasonable estimate shall be entitled to a rebuttable presumption of correctness,
D, Upon receipt of a written request of a taxpayer or tax collector, and for good cause, the tax administrator may extendthe time for any filing required by this chapter for a period of not to exceed 45 days, provided that the time for ffling has riot already passed when the tax administrator receives the request. No penalty or interest for delinqrient payment shall accrue by reason of such extension.

36 2, Uponrequestofthetaxadrninistrator,deliver,oreffectthedeliveryof,anyiiiformation orrecor.d inthepossession of such billing agent or billing aggregatorthat, in the opinion of the tax administrator, is necessary to verify the proper application, calculation, collection and/or remittance of sucl'i tax.

E. If any person required to keep records under this section unreasonably denies tlie tax administrator, orthetax adrninistator's designee, access to suchtecords, or fails to produce the information requested in an administrative subpoena within the time specified, the tax administrator may iinpose a penalty on such person of $500 for each day following tlie initial date that the person refuses to provide such access, or following tlie due date set forth in an adminimative subpoena, This penalty shall be in addition to any other penalty imposed under this chapter,
Section 7.29.160 Refunds
A. Whenever any tax imposed by this chapter has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the tax administrator, it may be refunded as provided in this section.

B. The tax administrator may refund such tax provided tliat no refund shall be paid unless the claimant or his or her guardian, conservator, executor or administrator submits a written claim, tinder penalty of petjury, to the tax administrator within one year of the payment or collection, Such claim must clearly establish clainiant's right to the refiuid by written -records, Nothing herein shall permit the filing of a refund claim for a class or group of taxpayers, City council approval shall be required for any individual refund in excess of $5,000.

C, The tax administrator, or the city council, as claimed in excess of $5,000, shall act upon a refiind claim within 45 days of its receipt, Said decision shall be final as to the City but subject to judicial review pursuant to Code of Civil Procedure section 1094.5. If the tax administrator or city council fails or refuses to act on a refund claim witl'iii'i the 45-day period, the claim sliall be deemed to have been rejected on the 45th day, D. Thefilingofawrittenclaimisaprerequisitetoanysuitthereon.Anyactionbroughtagainst the city pursuant to this section shall be subject to the provisions of Government Code section 940 et seq,
E. Notwithstandu'ig other provisions of tliis section, whene'ver a service supplier, prirsuant to an order of the California Ptiblic Utilities Coinrnission, makes a refund to service 'users of charges for past utility services, the taxes paid pursuant to this chapter on the amount of suclirefunded charges shall also be refunded to service users, and the service supplier shall be entitled to a credit for such refunded taxes against tax due uponthe next monthly return.

Section 7.29.l70Appeals
A, ExceptastodecisionsrelatingtoarefundpursuanttoSection7,29.160,t}iissectionapplies to any deficiency detertnination, assessment, administ'rative ruling, or other decision ofthe tax administrator concerning taxes due under this chapter, Any person aggrieved by such a

37 decision of the tax admiiiistrator may appeal pursuant to this section and must do so as a prerequisite to any suit thereon. Nothing herein shall permit the filing of a claim or action on behalf of a class or group of taxpayers,
B. Suchanaggrievedpersonmayappealthatdecisiontothecitycouncil.Suchanappealmust be submitted in writing to tlie city clerk witMn 14 days of the date of the deficiency determination, assessment, administrative ruling, or other decision at issue, C, Thecitycouncilshalifixatimeandplaceforhearingsuchappealbeforeitselfotahearing officer. The appellant shall be served with notice of the time and place of the hearing, as well as any relevantmaterials, atleastten calendar days before the hearing. The city council or liearing officer may contiiiue the hearing from tinie to time. At the time of the hearing, the appealing party, the tax administrator, and any other interested person may present such relevant evidence as he or shemay have relating tothe determinationfromwhichthe appeaL is taken,
D. Based upon the submission of evidence and review of the city's files, the hearing officer shall prepare for the city cotincil's consideration, or the c% cotincil shall issue a written notice, and order upliolding, modifying, or reversing the determination appealed, The city council's decision is final for the city but is subject to judicial review r'inder Code of Civil Procedure Section 1094.6.

Section 7,29.180 Disposition of Funds
The utility users taxes collected under and pursuant to tlie provisions of this chapter shall be deposited and paid into the general fund of the city and expended for any lawfiil purpose of the city as the city council may determine.

Section 7.29.I90 No Action to Prevent Collection of Tax No injunction, writ of mandate, or other legal or equitable process shall issue in any suit, action, orproceeding iri any court againstthis city or against any employee or officer ofthe city to prevent or enjointhe collection under this chapter of any tax or any amount of tax required to be collected arid/or remitted.

Section 7.29.200 Remedies Cumulative
All remedies and penalties prescribed by this chapter or which are available under any other provision of law or equity are cumulative. The use of one or more remedies by the city shall not barthe use of any otherremedy forthe purpose of enforcing the provisions of this chapter provided only that the city may not collect any liability under this cliapter more than once.

Section 7.29.21D Notice of Changes to Ordinance
If a tax under this chapter is added, repealed, increased, reduced, ot the tax base is changed, the tax administrator sliall provide notice as Public Utilities Code Section 799 requires, Before the effective date of the ordinance cliaiige, each service supplier shall provide the tax administrator with a copy of ariy written procedures describing the infoimation tlie service supplier needs to

38 implement the ordinance change, If the service supplier fails to provide such written instructions, the tax administrator, or liis or lier agent, sl'iall send, by first class mail, a copy of the ordinance change to all collectors and remitters of the city's utility users taxes according to the latestpayment records of the tax administrator.

Section 7.29.220 Future Amendment to Cited Statute
Unless specifically provided otherwise, aiiy reference to a state or federal statute in this chapter shall mean such statute as it may be amended from time to time, provided that such reference to a statute herein shall not include any subsequent amendment thereto, or to any subseqrient change of interpretation thereof, to tl'ie extent that such aniendment or chance of interpretation would require voter approval under California law or would result in a tax decrease (as, for example, as a result of excluding all or a part of a comtnunication service, or charge therefor, from taxation).

Only to the extent 'voter approval would otherwise be required or a tax decrease would tesult, the priot versionofthe statute (orinterpretation) shall remain applicable to construction ofthis chapter for ariy application or situation that would not require voter approval or result in a decrease of a tax, provisions ofthe amended statute (or new interpretation) shall apply to the maximum possible extent.

To tl'ie extent that the city's authorization to collect or impose any tax imposed under this chapter is expanded or limited as a result of chaitges in state or federal law, no amendment or modification of this chapter shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the authorization up to the full ainount of the tax imposed under this chapter,
SECTION 2. The City Council may amend this Ordinance without a vote of the people provided, however, that voter approval is required for any amendment that would increase a tax within the meaning of Government Code section 53750(h).

SF,CTION 3. This Ordinance is exempt ftaom the California Environmental Quality Act (Pub, Resources Code, § 21000 et seq.) ("CEQA"), It can be seen with certainty that there is no possibility that this Ordinance may have a significant effect op the environment. (14 CCR Fg 15061(b)(3),) Further, tl'iis Ordiiiance simply creates a government funding mechanism, which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment, (14 CCR § 15378(b)(4),) SECTION 4. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or tlie application thereof is for any reason held to be invalid or unconstitutional by a court of competentjurisdiction, suchdecision shallnot affectthe validity ofthe remaining portions of this Ordinance. The People of the City of South Gate hereby declare that they would have adopted this Ordinance, and each and every section, subsection, subdivision, sentence, clarise, or phrase thereof without regard to whether any other portion of the Ordinance may be declared invalid ot unconstitutional,
SECTION 5. Pursuant to Elections Code section 9217, this Ordiriance shall take effect 10 days after certification of its approval by a majority of the electorate voting at the general election to be held November 3, 2026, Taxes shall be collected and remitted thereafter as provided in Public Utilities Code section 799,

3S;
39 SECTION 6. The Mayor shall sign, andthe City Clerk shall attestto the passage of, this Ordinance upon certification by the City Council of the results of the election approving it.

We hereby certify that the voters of the City of South Gate did approve this Ordinance by majority vote on November 3, 2026.

PASSED, APPROVED and ADOPTED tis day of 2026.

CITY OF SOUTH GATE:

B7:

Joshua Barron, Mayor
ATTEST:

BY:

Yodit Glaze, City Clerk
(SEAL)
.=!J'PROVED AS TO FORM:

B7:

Raul DA!C!IAE'

3(!,
40 Attachment D
Agenda ail) %/09/26
ORDINANCE NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA
ozm,mcg OF THE PEOPLE OF THE CITY OF

SOUTH GATE ADOPTING A UTILITY USERS TAX
WHEREAS, the City of South Gate ("City"), despite significant improvements in its fiscal accountability, is experiencing an increase in service demands from a growingpopulation, leaving the City, iike many others in California, witli inadequate funding to address essential public safety and service needs;
WHEREAS, the City has implemented anumber of cost-saving measures having reducedthe number of employees, consolidated depaitments, and become more efficient in its operations; WHEREAS, the City is in a Financial State of Emergency, with a projected st'ivctural General Fund deficit of approximately $9.4 million in fiscal year 2026-27, following a structural imbalance in fiscal year 2025-26 that has been addressed only through the use of non-recurring reserves and one-time measures; and absent corrective action, General Fund reserves will be significantly depleted, impacting the City's ability to sustain ongoing services; WHEREAS, without an immediate source of new revenue, the City will be forced to reduce essential services to the community;
WHEREAS, maintaining public safety with a fully funded police department, continuing to provide school crossing guards, maintaining parks and recreation services, senior services, neighborhood graffiti abatement programs, maintaining responsive planning, building, and code enforcement services, and fixing streets and potholes, are essentials for our community; WHERFSAS, without the adoption and subtnission of a Utility Users Tax measure to the voters, the City will be required to implement immediate and significant reductions to existing service levels, including reductions affecting public safety operations, parks and recreation programming, community development services, public works maintenance activities, financial administratxon, and the school crossing guard progtain, due to the insufficiency of ongoing General Fund revenues;
WHEREAS, a Utility Users Tax measure will make it possible for tlie City to improve its overall community services, for exatnple by: hiting additional police officersto reduceemergency response times, fixing City streets to improve traffic flow and reduce congestion, fighting gangs 'and dnigs by expanding neighborhood graffiti removal programs, supporting youth anti-gang and drug prevention programs, and after-school tutoring and mentoring programs; and

NOW, THEREFORE, THE PEOPLE OF THE CITY OF SOUTH GATE, CALIFORNIA, DO HEREBY ORDAIN AS FOLLOWS.

41 SECTION 1. Chapter 2,79 (Utility Users Tax) is hereby added to Title 2 (Licenses - Business Regulations) of the City of South Gate Municipal Code to read as follows:

Section 2.79.010 Definitions
For the purposes ofthis chapter, the following words ai'id phrases shall have the meanings ascribed to them unless otherwise noted:
"Ancillary telecommunication services" means services that are associated witli or incidental to the pro'vision, use or enjoyment of telecommunication services, inchiding, but not limited to, the following services:

1. "Conference bridging service" means an ancillary service that links two or more participants of an audio or video conference call and may include the provision of a telephone number, Conference bridging service does not include the telecomrnunication services used to reach the conference bridge.

2. "Detailed telecotnmunication billing service" means an ancillary service of separately stated information pertaining to individual calls on a customer's billing statement.

3. "Directory assistance" n'ieans an ancillary service of providing telephone number information, and/or address infomation.

4. "Vertical service" meaiis an ancillaiy service that is offered in coi'inection with one or more telecoinmunication services, whicl'i offers advanced calling features that allow customers to identify callers and to maiiage multiple calls and call connections, including conference bridging services.

5. "Voice mail service" means an ancillary service that enables the customer to store, send or receive recorded messages. Voice mail service does not include any veitical services that the customer may need to use the voice mail service, "Ancillm7 video services" means services that are associated with, or incidental to, the provision or delivery of video services, including, but not litnited to, electronic program guide services, recording services, search f'rinctions, or other interactive services or communications that ai:e associated with or incidental to the provision, use or enjoyment of video services. "Billing address" means the mailing address ofthe service riser where tlie service supplier submits invoices or bills for payment by the customer.
"City" means the City of South Gate, a municipal corporation, or the territory within its jurisdictional boiu"idaries, as the context requires,
"Communication services" means telecommunication services, ancillary telecommunication services, video services, and ancillary video services. "Electrical corporation" means as defined in Section 218 ofthe Public Utilities Code and shall be construed to include any entity engaged in the selling or supplying of electricity to a service user,

42 "Exemptwholesale generator" shall have the saine meaning as set forth in42 U.S.C, Section 16451 and the regulations thereunder
"Gas" means natural or manufactured @as or any alternate hydrocarbon fiiel, which may be substituted therefor.
"Mobile telecommunications service" sliall have the same meaning and usage as set forth in 4 U.S,C. Section 124 and the regulations thereunder.
"Month" means a calendar month.
'T"Jon-utility service suppUer" means:

1. A service supplier, other than a supplier of electric distribution services to all or a significant portion of the city, wliich generates electricity for sale to others, and shall include, but is not liited to, any publicly owned electric utility, investor-owned utility, cogenerator, distributed generationprovider, exemptwholesale generator, municipal utility district, federal power marketing agency, electric 'iwal cooperative, or other supplier or seller of electricity; or
2, A cotninunity choice aggregator, electric service provider (ESP), electricity broker, marketer, aggregator, pool operator, or other electricity supplier other than a supplier of electric distribution services to all or a significant poitioi'i ofthe city, whichsells or supplies electricity or supplemental services to electricity users within the city; or

3. A gas service supplier, aggregator, marketer, or broker, other than a supplier of gas distribution services to all or a significant portion of the city, which sells or supplies gas or supplemental services to gas users within the city,
"Paging service" means a telecommunication service that provides transmission of coded radio signals for tbe purpose of activating specific pagers; such transtnissions may include messages ond/or sounds.
"Person" means, without limitation, any natural individual, firm, triist, common law trust, estate, partnership of any kind, association, syndicate, club, joint stock company, joint ventute, limited liability company, corporatiori (including foreign, domestic, and non-profit), municipal district, municipal corporation (other than the City of South Gate), cooperative, receiver, trustee, or guardian.
"Place of primary use" memis the street address representative of where a customer's use of a service priinarily occurs, which must be a customer's resideiitial street address orprimary business street address.
"Post-paid telecomtnunication service" means the telecommunication seivice obtained by making a payment on a communication-by-communication basis either through the use of a credit card or payment mechanisin such as a bank card, travel card, credit card, or debit card, or by a charge

3Q
43 made to a service number which is not associated with the origination or teri'nination of the telecominunication service,
"Prepaidtelecommunicationservice')meanstherightto accesstelecomrnunicationservices, which must be paid for in advance and which enables the origination of comtnunications using an access number or authorization code, wliether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount, "Private telecommunication service" means atelecominunication servicethat entitles tlie customer to exclusive or priority use of a communications chaiinel or group of chaniiels between or among termination points, regardless of the manner inwliich such chaniiel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the rise of such cliannel or channels, "Service address" means:

1. The location of the service user's place of primary use, such as his or her residential street address or business street address, or

2. Tlie location of the service user's communication equipment from which the comnnunication originates or terminates, regardless of where the communication is billed or paid, or
3, For prepaid telecoitnunication service, the location associated with the service nwiber. "Service supplier" means any person, including the city, who provides telephone communication, electric, gas, water, or video services to a user of sucli setvices within tlie city. The term shall include any person required to collect and remit a tax as imposed by this chapter, including its billing agent in the case of electric and gas service suppliers, "Service user" means a person required to pay a tax imposed by this chapter. "State" means the state of California.
"Streamlined Sales and Use Tax Agreement" means the multistate agreement commonly known aiid referred to as the Streainlined Sales and Use Tax Agreement, as it is amended from time to time.
"Tax admiiiistrator" means the City Mm'iager of the City of South Gate, orhis or her designee. "Telecommunication services" means the transmission, conveyance, or routing of voice, data, audio, video, or any otlier information or signals to apoint, or between or among points, whatever the technology used, "Telecommunication services" includes such traiismission, conveyance, or routing in whicb computer processing applications are used to act on tlie fotm, code or protocol of the content for prirposes of transmission, conveyance or routing without regard to whether such services are referred to as voice over internet protocol (VoIP) services or are classified by the Federal Communications Commission as enhanced or value added, and includes video and/or data setavices that are functionally integrated with "telecommunication services." "Telecoi'nmunication

'fO
44 services" include, but are not limited to, the following services, regardless of the manner or basis on which such services are calculated or billed: intrastate, interstate, and international telecommunication services; ancillary telecoinmunication services; mobile telecommunications service; prepaid telecommunication service; post-paid telecommunication service; private telecommuiffcation service; paging service; 800 service (or any other toll-free nutnbers designated by the Federal Coinmunications Commission); 900 service (or any other similar nui'nbers designated by the Federal Communications Commission for services whereby subscribers who call in to prerecorded or live service).
"Video programining" means those programming services commonly provided to subscribers by a video service supplier including, but not Iimited to, basic services, premium services, audio services, video games, pay-per-view services, video on dennand, origination programming, or any other similar services, regardless of the content of such yideo progrg, or the technology used to deliver such services, and regardless of the manner or basis on which such services are calculated or billed.
"Video services" means video programming and ariy and all services related to the providing, recording, delivering, use or enjoyment of "video programming"' (including origination programming and programming using Intetnet Protocol, e,g., IP-TV and IP-Video) by a "video service supplier," regardless of the technology used to deliver, store or pro'vide such services, and regardless of tlie manner or basis on which sucli services are calculated or billed, and includes ancillary video services, data services, telecommunication services, or interactiye communication services tliat are functionally integrated w'th video services. "Video service supplier" meaiis aiiy person, company, or service which provides or sells video programming, or provides or sells the capability to receive video programming, including any communications that are ancillary, necessary or commonto the provision, use or enjoyment ofthe video programming, to or from a business or residential address in the city, including but not limited to or from a business, home, condominium, or apaitment, where some fee is paid, whether directly or included in dues or rental charges for that service, whether or not public rights-of-way ate used in the delivery of the video prograinming or communications. A video service supplier includes, but is not limited to: multi-cliannel video prograinnning distributors (as defined in 47 U,S.C. Section 522(13)); openvideo systems (OVS) suppliers; suppliers of cabletelevision; master antenna television; satellite master antenna television; multichannel multipoint distribution services (MMDS); video services using internet protocol (e.g., IP-TV and IP-Video, wliich provide, among other things, broadcasting and video on demand), direct broadcast satellite to the extent federal law permits taxation of its yideo services, now or in the future; video streaming services, and other suppliers of video services (iiicluding two-way communications), whatever their technology,
"VoIP (voice over internet protocol)" means the digital process of makiiig and receiving real-time voice transmissions over any internet protocol network, "800 service" means a "telecommunications service" tliat allows a caller to dial anumber without incurring a cl'iarge for the call. The service is typically marketed under the name "800," ('855," "866," "877,>' and "888" toll-free calling, and any subsequent numbers the Federal Communications Commission may designate for such services, Page5of22
'tl
45 "900 service" means an inbound toll "telecommunications service" pirchased by a subscriber that allows the subscriberos customers to receive the subscriber's prerecorded announcement or live service. "900 service" does not include tlie charge for collection services provided by the seller of the "telecommunications services" to the subscriber, or service or product sold by the subscriber to the subscriber's customer. The service is typically marketed under the name "900" service, and any subsequent numbers tlie Federal Commiinications Commission may designate for SIICII seivice.

Section 2.79.020 Communicatioxis Users Tax
A, Telecominuiiication Services
1, Thereisherebyimposedataxuponeverypersonusingtelecominunicationservicesin tlie city. The tax shall be at the rate of 9 percent of all charges made for such services and shall be collected from tlie service user by the telecommunication services supplier or its billing agent, There is a rebuttable presumption that telecommunication services, which are billed to a billing or service address in the city, are used, in whole or in part, withinthecity, and such services are subject to taxation underthis chapter. If the billing address of the service user is different from the service address, the service address of tlie serviceuser shall be used to applythetax, As used inthis section, thetem "charges" shall incltide the value of any other services, credits, property of every kind or nature, or other consideration provided by tlie service user in exchange for the telecomtminication services.

2. As used in this section charges for "telecomi'nunication services" shall include, but are not limited to, charges for: connection, reconnection, termination, movement, or change of telecommunication services; late payment fees; detailed billing; central office atid custom calling features (including, but not limited to, call waiting, call forwarding, caller identification and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; universal service charges; regulatory, administrative and other cost-recovery charges; local number portability charges; and text and instant messaging, "Telecom'nunication services" shall not include digital downloads that are not "aricillary telecominunication services," such as music, ringtones, games, aiid similar digital products.

B. Video Services
1, There is liereby imposed a tax upon every person using video services in the city provided by a video service supplier. The tax shall be at the rate of 9 percent of the charges made for such video services, and shall be collected from the service user by the video service supplier, or its billing agent.

2. As used in this section, "charges" shall include the 'value of any other services, credits, property of eveiy kind or nature, or other considetation provided by the service user in exchange for video services. Charges for video services shall also include, but are not liiuited to, charges for the following:

'F2.
46 a. Regulatoiy fees and surcharges, franclffse fees, and access fees (including those to fund public, educational, and government video programming); b. Initial installation of equipment necessary for provision and receipt of video services;
c, Late fees, collection fees, bad debt recoveries, and returned-check fees; d, Activation fees, reactivation fees, and reconnection fees; e. Video programming and video services;
f, Ancillary video services (e,g., electronic program guide services, recording functions, search functions, or other interactive services or communications that are ancillary, necessary or cornrnon to the use or enjoyment of video services); g, Equipment leases (e,g., remote, recording or search devices, converters, remote devices);
li. Service calls, service protectron plans, name clianges, changes of services, and special services;
i. Leasing of channel or other access.

C, Mobile telecommunications service shall be sourced in accordance with the sourcing rules set forth in the Mobile Telecomtmu'iications Sorircing Act (4 U.S,C. Section 124). The tax administrator may issue and disseminate to communication service suppliers requited to collect a tax under this chapter, sourcing rules for the taxation of other communication services, including, but not limited to, post-paid communication services, prepaid coinmunication services, and private communication services, provided that such rules are based upon custom and common practice that fuither administrative efficiency and minimize multijurisdictional taxation (e,g., Streamlined Sales and Use Tax Agreen'ient).

D, The tax adtninistrator, from time to time, may issue and disseminate to communication service suppliers required to collect a tax under this cliapter, an administrative ruling identifying those comtnunication services that are subject to the taxes levied by subsections A and B above. Further, the tax administrator, from time to time, may survey coinmunication service suppliers to identi:[y the components of commuriication services offered to customers within the city, and the charges therefor. The tax administrator, thereafter, may issue ai'id disseminate to such commui'iication service suppliers an administ'rative ruling identifying components that (1) are necessary for or common to the receipt, use or enjoyment of taxed communication service; or (2) currently are or historically have been included in a bundled rate fot taxed communication service. Charges for sucli components shall be subject to the tax imposed by subsections A and B above.

E. To prevent actual multijurisdictional taxation of commrmication services subject to tax underthis section, any service user, upon proof to the taxadministratorthatthe service user has previously paid the same tax in another state or city on such conimunication services,

L1.3
47 shall be allowed a credit against the tax innposed to the extent of such tax legally imposed in such other state or city; provided, liowever, the ai'iiount of credit shall not exceed tlie tax owed to the city under this sectioii,
F. The tax on communication services imposed by this section shall be collected from the service user by the service supplier or its billing agent. In the case of 'video service, the purchaser of the bulk video service (e,g., an apartinent owner) shall be the "service user,'= unless such service is resold to individual users, in wliich case the service user shall be the ultimate purchaser. The ainount of tax collected in one month shall be remitted to the tax administrator, arid must be received by the tax administrator on or before tlie 25th day of the following month.

Section 2.79.030 Electricity Users Tax
A, There is hereby imposed a tax upon every person using electricity in the city. The tax imposed by this section shall be at the rate of 9 percent of the charges made for such electricity, and for any supplemental services or other associated activities directly related to and/or necessary for the provision of electricity to the service user, wMch are provided by a service supplier or non-utility service supplier to a service user, B, As used in this section, "charges" includes charges for all services, components, and items that (1) are necessary for or common to the receipt, use, or enjoyment of electric service, or (2) currently are orhistorically have been includedin a single or bundledrate for electric service by a service supplier to retail customers, As used in this section, "charges" shall include tl'ie value of any other services, credits, propetty of every kind or nature, or other consideration provided by a service user in exchange for electricity or services related to the provision of electricity. "Charges" include, but are not limited to, the following:

1. Energy charges;

2. Distribution or transmission charges;

3. Metering charges;

4. Stand-by, reserves, fitmiiig, rarnpirig, voltage support, regulation, emergency, or other similar minimum charges for services;

5. Customer charges, late chatges, service establishment ot reestablishment charges, demand charges, fiiel or other cost adjusttnents, power exchange charges, independent system operator (ISO) charges, stranded investment or competitive transition charges (CTC), public-purpose-program charges, nuclear decommissioniiig charges, tust transfer atnounts (bond financing charges), franchise fees, franchise surcharges, annual and monthly charges, and other charges, fees or surcharges which are necessary for or common to the receipt, use, or enjoyment of electricity service; and

6. Charges, fees, or surcharges for electricity services or programs which are mandated by tlie California Public Utilities Commission or the Federal Energy Regulatory

4q
48 Commission, whether or not such charges, fees, or surcharges appear on a bundled or line-item basis on a customer's bill,
C. Tlietaxadministrator,fromtimetotime,maysurveyelectricityservicesupplierstoidentify the unbundled billing components of electric retail service that they commonly provide to residential and other customers in the city, and the charges therefor, includiixg those items that are mandated by state or federal regulatory agencies as a condition of providing such electricity service. The tax administrator, tlxereafter, may issue and disseininate to such electricity service suppliers an administrative ruling identifying those components and items which (1) are necessary for or common to the receipt, use or enjoyment of electricity service; or (2) currently are or histotically have been included in a single or bundled rate for electricity service by a service supplier to retail customers. Charges for sucli components and items sliall be subject to the tax imposed by subsection A above.

D, As used in this section, "using electricity" shall not include an electrical corporation's or governmental agency's receiving of electricity for resale.

E. The tax on electricity provided by self-production or by a non-utility service supplier not required by this chapter to collect the tax shall be collected and remitted as set forth in Section 7.29.045 of this chapter. All other taxes on charges for electricity imposed by this section shall be collected from the service user by the electric service supplier or its billing agent, The amount of tax collected in one month shall be remitted to tlie tax adtninislrator, and must be received by the tax administrator on or before the 25tli day of the following month.

Section2.79.040 Gas Users Tax
A. Thereisherebyimposedataxuponeverypersonusinggasinthecity,wMchistransported and delivered througli a pipeline distibution system. The tax imposed by this section shall be at the rate of 9 percent of the charges made for such gas, including all services related to the storage, transportation and delivery of such gas, B. There shall be excluded from the base to which the tax imposed by this section is applied:

1. Charges made for gas which is to be resold and delivered through mains or pipes; 2, Charges made for gas to be used in the generation of electrical energy by an electrical corporation; and

3. Charges made by a gas public utility for gas used and consutned in the conduct of the gas public utility's business.

C, As used in this section, "charges" shall include charges for all services, components and items for gas service that (1) are necessary for or common to the receipt, use, or enjoyment of gas service; or (2) currently ate or histoiically have been included in a single or bundled rate fot gas service by a service supplier to retail customets, "Charges" shall include, but is not limited to, the following:

't5'
49 1, The commodity charges for purchased gas, or the cost of gas owned by the service user (iiicluding the actual costs attributed to drilling, production, lifting, storage, gathering, trunkline, pipeline, and other operating costs associated with the production, transmission, and delivery of such gas), which is delivered through a gas pipeline distribution system;
2, Gas transportation charges, including interstate charges to the extent not included in commodity charges;
3, Storage charges; provided, however, that a service supplier shall not be required to apply tlie tax to any charges for gas storage services wlien the service supplier cannot, as a practical matter, determine the jurisdiction in which such stored gas is ultimately used; but it shall be the obligation of the service user to self-collect the amount of tax not applied to ariy charge for gas storage by the service supplier and to remit the tax to the appropriate jurisdiction;
4, Capacity or demarid charges, late charges, service establishment or reestablishment cliarges, transition charges, customer charges, minimum charges, annual and monthly charges, and any other charges which are necessary for or common to the receipt, use, or enjoyment of gas service; and,

5. Charges, fees, or surcharges for gas sewices or programs mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees, or surcharges appear on a bundled or line-item basis on a cristomer's bill,
D. As used in this section, "charges" shall include the value of any otliet services, credits, property of every kind or nature, or other consideration provided by a service user in exchaiige for gas or services related to the delivery of gas.

E. The tax administrator, from time to time, may suiyey gas service suppliers to identify the unbuidled billing components of gas retail service that they commonly provide to residential and other customers in the city, and the charges therefor, including those items that are mandated by state or federal regulatory agencies as a condition of providing such gas service, The tax administrator may issue ai'id disseminate to such gas service suppliers aii administrative ruling identifying those components and items whicl'i (l) necessaty for or common to the receipt, use, or enjoyment of gas service; or (2) currently are or historically have been iiicluded in a single or bundled rate for gas service by a gas service supplier to retail customers. Charges for such components aiid items shall be subjectto the tax imposed by subsectionA above,
F. Thetaxotigasprovidedbyself-productionorbyanon-utilityservicesuppliernotrequired to collect a tax by this cliapter shall be collected and remitted in the manner set forth in Section 7.29.045 of this chapter. All other taxes imposed on cliarges for gas by this section shall be collected from the service user by the gas service supplier or its billing agent, The ainount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator, on or before the 25th day of the following month.

50 Section2.79.045 Collection of Tax from Semce Users Making Direct Purchase of Gas or Electricity
A, Any service user subject to a tax imposed by Section 7,29.030 or by Section 7,29.040 of this chapter, whichproduces gas or electricity for self-use; whichreceives gas or electricity, including anyrelated supplemental services, directly from anon-utility service gupplier not required to collect a tax imposed by this chapter; or wliich, for any otlier reason, does not havethe full tax collected andremitted by its service supplier, anon-utility service supplier, or its billing agent 011 the use of gas ot electricity in the city, including any related supplemental services, shalI report that fact to tlie tax administrator aiid shall remit the tax due directly to tlie tax administrator within 30 days of such use.

B, The tax administrator may require such a service user to identify its non-utility service supplier and provide, subject to audit: invoices; books of account; or other satisfactory evidence documenting the quantity of gas or electricity used, including any related supplemental services, and the cost or piice thereof. If the service user is unable to provide such satisfactory evidence, or if the tax administrator concludes in liis or her reasonable discretionthatthe costto calculate the tax is excessive,tbe tax administrator may determine the tax by applying the tax rate to the equivaler+t charges the service user would have incurredifthe gas or electricity used, including anyrelated supplemental services, had been provided by tlie primary supplier of gas or electicity within the city. The tax adininistrator shall make available rate schedules for this purpose, Section2.79.050 Water Users Tax
A. There is hereby imposed a tax IIPOII every person using water in the city which is transpoited and delivered throrigh a pipeline distribution system, The tax imposed by this section shafl be at tlie rate of 9 percent of the charges made for such water and shall be collected from the service'riser by the water service supplier or its billing agent.

B, As used in this section, "charges" shall apply to all services, components and items that (1) are necessary for or common to the receipt, use, or enjoyment of water service; or (2) currently are or historically have been included in a single or bundled rate for water service by a service supplier to retail customers. "Charges" shall include, but is not liinited to, the following:
1, Water cormnodity charges (potable aiid non-potable), 2, Distribution or transmission charges,

3. Metering charges,
4, Customer charges, late charges, service establislment or reestablishrnent charges, franchise fees, 'franchise surcharges, annual and monthly charges, and other charges, fees and surcharges which are necessary for or common to the receipt, use, or enjoyment of water service, and

'1'7
51 5, Charges, fees, or surcharges for water services or programs, wich are mandated by a water district or a state or federal agency, whether or not such charges, fees, or surcharges appear on a bundled or line-item basis on a customer's bill, C. As used in this section, "charges" shall include the value of any other services, credits, propexty of every kind or nature, or other consideration provided by a service user in exchange for water services.

D. Thetaxadministrator,fromtimetotime,maysurveywaterservicesupplierstoidentifythe unbundled bilIing components of water retail service that they commonly provide to residential arid other customets in the city, and the charges therefor, including those items that are mandated by a wholesale or retail water supplier or a state or federal agency as a condition of providing such water service. The tax administrator, thereafter, may issue and disseminate to such water service suppliers an administrative ruling identifying those components ax'id items which (1) are necessary for or common to the receipt, use, or enjoytnent of water setvice; or (2) currently are or historically have been incluaed in a single or bundled rate for water service by a service supplier to retail customers. Charges for such components and items shall be subject to the tax imposed by subsectionAabove.

E. There shall be excluded from the base to which the tax imposed in this section is applied charges forwaterwhicl'i is to be resold and deliveredthrough apipeline dimibution system.

F. The tax on water service imposed by tliis section shall be collected from a service user by the water service supplier or its billing agent. The amount of tax collected in one month shall be rennitted to the tax administrator, and must be received by the tax adnninist'rator on or before the 25th day of the following month.

Section 2.79.060 Effect of Comingling Taxable Items wit}i Nontaxable Items Ifany nontaxable chgges are combined with andnot separately stated fromtaxable service chai:ges on a customer bill or invoice, the combined charge is subject to tax unless the service supplier identifies, by reasonable and verifiable standards, tlie portions of tlie combined charge that are nontaxable and taxable through the service supplier's books and records lcept in the regular course of business, and in accordance witli generally accepted accounting principles, and not created and maintained for tax purposes. A service supplier lias the brirden to prove the proper apportionment of taxable and nontaxable charges. If the service supplier offers a combination of taxable and nontaxable services, and the charges are separately stated, then for taxation putposes, the values assigned the taxable and nontaxable services shall be based on its b,ooks and records kept in the regular course of business and in accordance witli generally accepted accounting principles, and not created and nqaintained for tax putposes. A service supplier lias the burden to prove the proper valuation of the taxable and nontaxable services.

Section2.79.070 Exemptions
A. NotMng in this chapter sliall be construed as iinposing a tax upon the city, or upon any person or service when innposition of such tax upon that person or service would be in violation of a federal or state statute, the Constitution of the United States or the Constitution of the State of California,

'00
52 B, The taxes imposed by this chapter, shall not appIy to any person who:

1. Is 65 years of age or older;
2, Resides at the service address as his or her primary place of residence; and 3, Has a combined gross income, including all taxable and non-taxable income of all members of the household in which the person resides, that does not exceed the income threshold establislied by the Tax Adininistrator pursuant to subdivision (C) of this section; arid

4. Has filed the application described in subdivision (D) of this sectiorh.

C, The Tax Administrator shall establish, by administrative rule, the household income thresholds applicable to tlie exemption provided in subdivision (B) of this section. In establishing such thresholds, the Tax Administrator shall use the incon'ie eligibility standards published by the California Public Utilities Commission for low-income utility assistance pzograms, as those standards are updated from time to time, with separate thresholds applicable to households of one or two persons and to households of three or more persons. In no event shall the threshoM be set below the applicable CPUC standard in effect at the time of determination. The Tax Administrator shall update the applicable thresholds annually, consistent with any revision to the CPUC standards, and sliall make the cuirent thresholds publicly available in English aiid Spanish.

D. Any person claiming an exemption tuxder subdivision (B) of tffis section sliall apply to the Tax Administratot on a fom appro'ved by the Tax Administrator. The application shall include a declaration under penalty of perjury of the facts qualifying the applicant, including proof of age and documentation sufficient to establish the combined gross income of all household members fortheprior calendar yeat, An approved exemption shall remain in effect unless the senice user no longer meets tlie qualifying criteria, at wliich point the service user shall notify the Tax Administrator in writing within 30 days of any change in qualifying status. The Tax Administrator shall require annual re-verification of eligibility, A service riser who fails to timely notify the Tax Administrator of a change in qualifying status shall not be entitled to a refund of taxes collected and remitted during the period of ineligibility.

E, UponrequestoftbeTaxAdministrator,aservicesupplierornon-utilityservicesupplier,or its billing agent, shall provide a list of the names and addresses of those customers iyhich, according to its billing records, are deemed exempt from the taxes imposed by this chapter.

F, ThedecisionofthetaxadministratormaybeappealedpursuaiittoSection7.29.170ofthis chapter. Application to the tax administrator and appeal to the City Council pursuant to Section 7.29.170 of tliis chapter are prerequisites to a suit thereon,

53 Section 2.79.080 Substantial Nextis and Minimum Contgcts For purposes of imposing a tax or establishing a duty to collect and remit a tax under this chapter, "substantial nexus" and "minimum contacts" sliall be constiued broadly in favor ofthe imposition, collection, and/or remittance of a tax to the fullest extent pertnitted by state and federal law, and as it may cliange from time to time by judicial interpretation or by statutoiy enactment. Any comtnunication service (including VoIP) used by a person with a service address in the city, whicli service is capable of terminating a calf to another person on the general telephone network, shall be subject to a rebuttable presumption that "substantial nexus / minimum contacts" exists for purposes of imposing a tax, or establishing a duty to collect and remit a tax, under this chapter. A service suppIier shall be deemed to have sufficient activity in the city for tax collection and remittance purposes if its activities iiiclude, but are not limited to, any of the following: maintains or has witliiii the city, directly or through an agent or subsidiary, a place of residence or business of any nature; solicits business inthe city by employees, independent contractors, resellers,'agents or other representatives; solicits business in the city on a continuous, regular, seasonal or systematic basis by means of advertising btoadcast or relayed from a transmitter with the city or distibuted from a location with the city; or advertises in newspapers or other periodicals printed and published within the city or through materials distributed in the city by means other than the United States mail; or ifthere are activities performed in tl'ie city on behalf of the service supplier that are significantly associated with the service suppliels ability to establish and maintain a market in the city for the provision of comrmu"iication services tliat are subject to a tax under this chapter.

Section 2.79.090 Duty to Collect and Remit
Service suppliers shall collect and remit the taxes imposed by this chapter as follows:

A. The taxes shall be collected insofar as practicable at the same time as, aiid along with, the charges made in accordance with the regular billing practice of a service supplier. If a service user pays a service supplier less than the full amount of the charge and tax accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid. If a service user has notified the service supplier of refusal to pay the tax imposed on said charges, Section 7.29.130 of this chapter shall apply.

B. A service supplier's duty to collect tax from a service uset shall commence with tlie beginning of the first regular billing period applicable to the service user iri which all charges nori'nally included in such regular billing are subject to the provisions of this chapter. Where a person receives more tlian one billing, one or more beiiig for different periods than another, the duty to collect shall arise separately for each billing period, C. Each person required by this chapter to renfflt a tax shall file a return with the tax adinistrator on or before the due date, on forms approved by the tax administrator. The full amount of the tax owed shall be included with the return, The tax administrator is authorizedto require suchadditionalinformation as he or she deems necessary to determine if the tax is being levied, collected, and remitted in accordance with this chapter. Returns are due immediately upon cessation of business for any reason, The tax adnninistrator, and its agents, sliall maintain such returns as confidential information.

S?)
54 Section 7.29.100 Collection Penalties - Service Suppliers or Self-Collectors A, Taxes collected from a service user, or self-collected by a service user subject to Section 7,29.045 ofthis chapter, are delinquent if notreceived by the tax administrator on or before the due date. Should the due date occur on a weekend or legal holiday, the retwn must be received by the tax administrator on or before the first regular working day following tlie weekend or legal holiday. A direct deposit, including electronic fund transfers aiid other similar methods of electonically exchanging monies between financial accounts, made by a service supplier iii satisfaction of its obligations uider this subsection shall be considered timely if the transfer is initiated on or before the due date, and the transfer settles into the city's account on or before the following business day, B. If a service supplier, or a service user subject to Section 7.29.045 of this chapter, fails to reinit any tax collected on or before the due date, said person shall pay a penalty for such deliiiquencies at the rate of 15% of the total tax that is delinquent in the remittance, and shall pay interest at the rate of three-quarters of one (0.75) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent, until paid.

C. TodiscouragefraudandcoveranticipatedcoststheCitywouldincurtoidentifyandrernedy fraud, the tax administrator shall have the power to impose additional penalties upon persons required to collect and/ or remit taxes pursuant to the proyisions of this chapter for fraud or gross negligence in collecting, repoiting, or remitting tax at the rate of 25% of the tax due,
D. Forcollectionpurposesonly,everype:naltyimposedandsuchinterestthatisaccruedunder the provisions of this section shall become a part of the tax required to be paid, E, Notwithstanduig tlie foregoing, the tax administrator may, in his or her discretion, modify the due dates of this chapter to be consistent with any uniform standards or procedures that are mutually agreed upon by other public agencies imposing autility users tax, or otherwise legally established, to create a central payment location or mechanism. The tax adtninistrator may also enter into wtitten agreements with a service ptovider to alter the adnffnistrative details of this ordinance as appropriate to facilitate tax collection and remittance without undue expense to the service supplier or the City provided, however that no such agreement may materially alter the amounts due to the City.

Section 7.29.llOActions to Collect
Any tax imposed on a service user under this cliapter shall be deemed a debt owed by the service user to the city, Any such tax collected from a service user wlffcli lias not been remitted to the tax administrator shall be deemed a debt owed to the city by the person required to collect and remit and shall no longer be a debt of the setvice user. Any person owing money to the city under this cliapter shall be liable to an action brought in the name ofthe city for the recovery of such ainount, including penalties and interest as provided for in this chapter, along with any collection costs incurred by the city as a tesult of the person's noncompliaiice with this chapter, inchiding, but not limited to, reasonable attorney fees.

5i
55 Section 7.29.120 Deficiency Determination and Assessment A. The tax admii'iistrator sball make a deficiency detern'iination if he or she determines tliat any person required to collect or self-collect taxes pursuant to tliis chapter has failed to collect and remit the proper amount of tax, includirig but not liinited to, by improperly applying or failing to apply the tax to orre or more taxable setyices or charges.

B. The tax administrator shall mail a notice of such deficiency determination to tlie person required to pay or remit the tax, wich xiotice shall refer briefly to the amount of the taxes owed, plus interest at the rate of tlyee-quarters of one (0.75) percent per month, or any fraction thereof, on the tax due from Uhe date the city should have received tl'ie tax. Within 14 calendar days afl'er service of such notice, the person may make written request to the tax administrator for a hearing. If the person fails to request a liearing within that time, the amount of the deficiency determination sl'iall become a final assessment, and sliall itnrnediately be due and owing to the city,
C. If the person requests a hearing, the tax administator shall carise the matter to be set for hearing not later than 30 days after teceipt of the request. The tax adininistrator shall mail notice of the time and place of the hearing to such person at least 10 calendar days before the hearing, and the notice may designate records that said person must produce at such liearing.

D, At the time fixed for tl'ie hearing, the tax administrator or his or her designee shall hear all relevant testimony and evidence, including that of any other interested parties, At the discretion ofthe tax adtninistrator, the hearing may be continued from time to time to allow pyesentation of additional evidence. Within a reasonable time following the conclusion of the hearing, the tax administrator or his or her designee shall issue a final assesstnent confirming, modifying, or rejecting the original deficiency determination, and shall mail a copy of such final assessn"ient to the person owing the tax. The decision of the tax administrator may be appealed pursuant to Section 7,29,170 of this chapter, A hearing request to the tax adrinistrator and an appeal to the city council pursuant to Section 7,29,170 ofthis chapter are prerequisites to a suit thereon.

E. Payment of the final assessment shall become delinquent if not received by the tax administrator on or before the 30th day following service of the notice of final assessment.

The penalty for delinquency shall be 15% on the assessment, along with interest at the rate ofthree-qriaiters of one (0.75) percent per montb, or any fractionthereof, on the aniount of the tax, exclusive of penalties, from the date of delinquency, until paid.

Section 7.29.130 Nonpaying Service Users
A, Wheneverthetaxadministratordeterminesthataserviceuserhasdeliberatelywithheldtlie amount of the tax from amounts remitted to a person required to collect the tax, or whenever the tax administator deems it inthe best interest ofthe city, he or she may relieve such person of the obligationto collect the taxes due under this chapter from certain natned service users for specific billing periods. Whenever the service user has failed to pay tlie amount of tax owed for a period of two or more billing periods, the service supplier shall be relieved ofthe obligation to collect taxes due. The service suppliet shall provide the city

52..
56 with the names and addresses of sucli service users and the amounts of taxes owed under tlie provisions of this chapter.

B. In addition to the tax owed, the setavice user shall pay a delinquency penalty at the rate of 15% ofthe tax owed, ai'id sliall payinterestattherate offfiree-quarters of one (0.75) percent per month, or any :[raction thereof, on the amount of the tax, exclusive of penalties, from the due date, until paid.

C, The tax administrator shall notify the non-paying service user that the tax adiuinistrator has assumed the responsibility to collect the taxes due for the stated periods and demand payment of such taxes, including penalties and interest. The notice sliall be served on the service user by personal delivery or by deposit of the notice in the United States mail, postage prepaid, addressed to the service user at the address to which the person required to collect the tax addressed bills; or, should the service user have a change of address, to his or lier last known address.

D, If tlie setvice user fails to renut the tax to the tax administrator within 30 days of service of the notice, the tax adininistrator may impose an additional penalty of 15% of the tax owed.

Section 7.29.140 Additional Powers and Duties of the Tax Administrator A. Tlietaxadministratorslialihavethepowerandduty,andisherebydirected,toeriforceeach mid all of tlie provisions of this chapter.

B, The tax administrator may adopt adininistrahve rules and regulations not inconsistent witb provisions of this chapter to interpret, clarify, carry orit and enforce the payment, collection and remittance of the taxes herein imposed. A copy of such administrative rules aiid regulations sliall be available for inspection in the tax administrator's office.

C, To ensure compliance with this chapter, the tax administrator may audit any person required to collect and/or remit a tax pursuarit to this chapter. The tax administrator shall notify said person of such an audit in writing. In the absence of fraud or other intentional misconduct, the audit period of review shall not exceed three years nextpreceding the date of service of notice of audit. Upon completion of the aridit, the tax administrator may make a deficiei'icy determination pursuant to Section2.79.l20 of this chapter for all taxes, penalties and interest owed, as evidenced by information provided by sucli person to the tax adtninistrator, If said person is unable or unw'lling to provide sufficient records to enable the tax adrniiffstrator to verify compliance with this chapter, the tax administrator maymake areasonable estimate ofthe deficiency, Saidreasonable estimate shall be entitled to a rebuttable presrunption of correctness.

D, Uponreceiptofawrittenrequestofataxpayerortaxcollector,andforgoodcause,thetax administator may ext.end thetime for any filing reqtiired by this chapter for a period ofnot to exceed 45 days, provided that the time for filing has not already passed wlien the tax adtninistrator receives the reqriest. No penalty or interest for delinquent payn'ient shall accrue by reason of sucli extension.

57 E, The tax adininistrator shall determine the eligibility of any person who asserts a right to exemption from, or a refund of, the tax imposed by this chapter.

F, The tax administrator may compromise a claim pursuant to tliis cliapter where the portion of tlie claim proposed to be released is less than $5,000. With the approval of tlie city council, the tax administrator may compromise larger claims.

G, Notwithstanding any provision in this chapter to tJhe contrary, the tax administrator may waive any lienalty or interest imposed upon a person required to collect and/ or remit tax for failure to do so if the non-collection occurred in good faith and with reasonable diligence. In deteimining whether the non-collection was in good faith and reasonable diligence, the tax administrator shall consider, but need not be bourid by, industry practice or other precedent,
Section 7,29.150 Records
A, It sliall be the duty of every person required to collect aiid / or retnit aiiy tax iinposed by this chapter to keep and preserve, for a period of at least three years, all records as may be necessary to determine thetax suchpersonmay have been liable to collect and remit, wliich records the tax admitxistrator shall have the rightto inspect at all reasonable times.

B. Tlie tax administrator may issue an administratrve subpoena to compel a person to deliver, to the tax administrator, copies of all records deemed necessary by the tax administrator to establish compliance with this chapter, inctuding the delivery of records in a common electronic format onreadily available media if the personlceeps such records electronically in the ordinary cor'irse of business. As an alternative to delivering the subpoenaed records to the tax administrator on or before the due date provided in the administrative subpoena, such person may provide access to such records outside the city on or before tlie due date, provided that such person shall reimburse the city for all reasonable travel expenses incurred by the city to inspe6t those records, including travel, lodging, meals, and otlier similar expenses, but excluding the normal salaiy or hourly wages of those who make the inspection,
C, The tax administrator is arithorized to execute a non-disclosure agreement approved by tlie city attorney to protect the confidentiality of customer infori'nation, The tax administrator may request from a person providing transportation or distribution services of gas or electricity to service users withinthe city, a list of the riarnes, bffling and service addresses, quantities of gas or electricity delivered, and other pertiiient information, pursuant to Section 6354(e) of the California Public Utilities Code, D. If a service supplier uses a billing agent or billing aggregator to bill, collect, and/or remit the tax, the service supplier shall:
1, Providetothetaxadrninistratortlienanie,addressandtelephonenumberofeaclibilling agent mid billing aggregator currently autliorized by the service supplier to bill, collect, and / or remit the tax; and

58 2. Uponreqiiestofthetaxadministrator,deliver,oreffectthedeliveiyof,anyinformation orrecordinthepossession ofsuch billing agent or billingaggregatorthat, inthe opinion of the tax adininistrator, is necessary to verify tlie proper application, calculation, collection and / or remittaiice of such tax.

E. If any person required to keep records under tliis section unreasonably denies the tax administrator, orthetax administrator's designee, access to sucli records, or failsto produce the infortnation requested in an administrative subpoena within the time specified, the tax adininistrator may impose a penalty on such person of $500 for each day following the initial date that the person refuses to provide such access, or following the due date set forth itx an administrative subpoena, This penalty shall be in addition to any other penalty imposed under this chapter.

Section 7.29.160 Refunds
A, Whenever any tax imposed by this chapter has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the tax administrator, it may be refunded as provided in this section.

B. Thetaxadministratormayrefundsuchtaxprovidedthatnorefiindshallbepaidunlessthe claimant or his or her guardian, conservator, executor or administratot submits a written claim, under penalty of perjury, to the tax administrator within one year of the payment or collection. Such claim must clearly establisli claimant's right to the refund by written records. Notliing herein shall peimit the filing of a refund claim for a class or group of taxpayers. City council approval shaII be reqtiired for any individual refund in excess of $5,000.

C. The tax administrator, or the city council, as claimed in excess of $5,000, shall act upon a refund claim within 45 days of its receipt. Said decision shall be final as to the City but subject to judicial review pursuant to Code of Civil Procedire section IO94.5. If the tax adtninistrator or city council fails or refuses to act on a refund claim witliin the 45-day period, the claim shall be deemed to have been rejected oii the 45th day.

D. Thefilingofawrittenclaimisaprerequisitetoanysuitthereon.Anyactionbroughtagainst the city pursuant to this section shall be subject to the provisions of Government Code section 940 et seq,
E. 'Notwithstanding other provisions of this section, whenever a service supplier, ptuasuant to an order of the California Public Utilities Commission, malces a tefund to service users of charges for past utility services, the taxes paid pursuant to this chapter on the amount of suchrefunded charges shall also be ret'unded to service users, andthe service supplier shall be entitled to a credit for such refunded taxes against tax due upon the next monthly return, Section 7.29.170 Appeals
A. ExceptastodecisionsrelatingtoarefundpursuaiittoSection7.29.160,thissectionapplies to any deficiency determination, assessment, administrative rtiling, or other decision of the tax administrator concerning taxes due under this chapter. Any person aggtieved by such a

'5S;'
59 decision of tlie tax adtninistrator may appeal pursuant to this section and must do so as a prerequisite to any suit thereon, Nothing herein shall permit the filing of a claim or action on belialf of a class or group of taxpayers,
B. Suchaiiaggrievedpersonmayappealthatdecisiontotliecitycouncil.Suchanappealrnust be submitted in writing to the city cletk within 14 days of tlie date of the deficiency detetnnination, assessment, administrative riling, or other decision at issue, C, Tlie city council sliall fix a time and place for hearing such appeal before itself or a hearing officer. The appellant shall be served with notice of the time and place of the hearing, as well as any relevantmaterials, at leasttencalendardays before the hearing, The city council or hearing officer may continue the hearing from time to time. At the tin"ie of the hearing, the appealing patty, the tax administrator, and any other interested personinay present such relevant evidence as he or shemay have relating tothe determination from whiclithe appeal is taken,
D. Based upon the submission of evidence and review of the city's files, the hearing officer shall prepare for the city council's consideration, or the city council shall issue a written notice, and order upholding, modifying, or reversing the determination appealed, The city council's decision is final for the city but is subject to judicial review under Code of Civil Procedure Sectionl094.6.

Section 7.29.180 Disposition of Funds
The utility users taxes collected under and pursuant to the provisions of this chapter shall be deposited and paid into the general fund of the city and expended for any lawful purpose of the city as the city council may determine.

Section 7.29.190 No Action to Prevent Collection of Tax No injunction, writ of mandate, or other legal or equitable process shall issrie in any suit, action, or proceeding in any court againstthis city or against aiiy employee or officer of the city to prevent or enjoin the collection under this cliapter of any tax or any amount of tax required to be collected and/or remitted,
Section 7.29.200 Remedies Cuniulative
All remedies and penalties prescribed by this chapter or which are available under any other provision of law or equity are cumilative. The use of one or more remedies by the city sliall not bartheuse of atxy other remedy forthe purpose of enforcing the provisions ofthis chapterproyided only that the city may not collect any liability rinder this chapter more than once.

Section 7.29.210 Notice of Changes to Ordinance
If a tax inder this chapter is added, repealed, increased, reduced, or the tax base is changed, the tax adi'ninistrator sliall provide notice as Public Utilities Code Section 799 requires. Before the effective date of the ordinance change, each service supplier shall provide tlie tax administrator with a copy of any written procedures describing the information the service supplier needs to

5-(b
60 implement the ordinance change. If the service supplier fails to provide such written instructions, the tax administrator, or his or her agent, shall send, by first class mail, a copy of the ordinance change to all collectors and remitters ofthe city's utility users taxes according to the latest payment records of the tax administrator.

Section 7.29.220 Future Amendment to Cited Statute
Unless specifically provided otherwise, any reference to a state or federal statute in this chapter shall mean such statute as it may be amei'ided from time to time, provided that such reference to a statute lierein shall not include any subsequent amendment thereto, or to any subsequent change of interpretation thereof, to the extent that such amendment or change of interpretation would require voter approval under California law or would result in a tax decrease (as, for example, as a result of excluding all or a part of a communication service, or charge therefor, from taxation).

Only to the extent voter approval would otherwise be required or a tax decrease would result, the priorversion ofthe statute (or interpretation) shall remain applicable to construction ofthis chapter for any application or situation that would not reqiire voter approval or result in a decrease of a tax, provisions of the amended statute (or new interpretation) shall apply to the maximum possible extent,
To the extent that the city's authorization to collect or impose any tax imposed under this chapter is expanded or limited as a result of changes in state or federal law, no amendment or modification of this chapter shall be required to conform the tax to those changes, and the tax shall be imposed axtd collected to the full extent of the authorization up to the full amount of the tax imposed under this chapter.

SECTION 2. The City Council may amend this Ordinance without a vote of the people provided, however, that voter approval is required for any amendment that would increase a tax within the meaning of Governtnent Code section 53750(h),
SECTION 3. This Ordinance is exetnpt from the California Environmental Quality Act (Pub.

Resorirces Code, e) 21000 et seq.) ("CEQA"). It can be seen with ceitainty that there is no possibility that this Ordinaxtce may have a significant effect on the environment, (14 CCR e) 15061(b)(3).) Ftuther, this Ordinance simply creates a government funding mechanism, wlffch does not involve any commitment to aiiy specific project which may result in a potentially significant physical impact on the environnnent. (14 CCR 8115378(b)(4).) SECTION 4. If any section, subsection, subdivision, sentence, clause, pmase, or portion of this Ordinance or the application thereof is for any reason held to be invalid or unconstitutional by a court of competentjurisdiction, such decision shall not affect the validity oftlie remaiirig poitions of this Ordinance. The People of the City of South Gate hereby declare that they would have adopted tlffls Ordinance, and eacli and eveiy section, subsection, subdivision, sentence, clause, or phrase tl'iereof without regard to wliether aiiy other portion of the Ordinance may be declared invalid or tu'iconstilutional.

SECTION 5. Pursuaiit to Elections Code section 9217, tliis Ordinaiice sliall talce effect 10 days after certification of its approval by a majority of the electorate voting at the general election to be held November 3, 2026, Taxes shall be collected and remitted thereafter as provided in Public Utilities Code section 799,

61 SECTION 6. The Mayor shall sign, andthe City Clerk shall attestto the passage of, this Ordinance upon certification by the City Council of the results of the election approving it.

We hereby certify that the voters of tlie City of South Gate did approve this Ordinance by majority vote on November 3, 2026.

PASSED, APPROVED and ADOPTED this day of 2026.

CITY OF SOUTH GATE:

By:

Joshua Barron, Mayor
ATTEST:

B7:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

RM F. Salinas, City-Attorney

62