January 5, 2022
Re: Title and Summary for Proposed Initiative Ordinance to Enact an Annual Parcel Tax on Some Commercial Office Properties for Early Care and Education and Childcare and Development Programs
To All Interested Parties:
Attached is the City Attorney’s title and summary for a proposed initiative ordinance to enact an annual parcel tax on some commercial office properties for early care and education and childcare and development programs. In providing this title and summary, the City Attorney makes no representations regarding the merits or legality of the proposed legislation.
Additionally, the City Attorney does not verify or confirm any factual or legal assertion made in the proposed legislation. The title and summary is presented as a “true and impartial statement of the purpose of the proposed measure,” as required by Elections Code section 9203.
Sincerely,
Sky Woodruff
City Attorney, South San Francisco
CITY COUNCIL 2022
MARK NAGALES, MAYOR (DIST. 2)
FLOR NICOLAS, VICE MAYOR
MARK ADDIEGO, MEMBER
JAMES COLEMAN, MEMBER (DIST. 4)
EDDIE FLORES, MEMBER
MIKE FUTRELL, CITY MANAGER
ATTACHMENT 2
Annual Parcel Tax on Some Commercial Office Properties for Early Care and Education and Childcare and Development Programs
The proposed initiative ordinance (“ordinance”) would levy an annual parcel tax on some commercial office properties. The tax rate would be $2.50 per square foot of parcel size. “Commercial office parcel” is defined to mean any parcel of real estate in the City of South San Francisco “that is developed and used by a business entity primarily for operations or services that are professional, scientific, or technical in nature. Such services or operations include but are not limited to computer programming, data processing, research and development activities, or operation of an internet retailing business. Such services or operations do not include warehousing, industrial, or retail activities.” The tax would not apply to commercial office parcels that are less than 25,000 square feet. The tax would be collected each year with regular property taxes.
Revenue from the tax could only be used for specified purposes. First, eligible children would be able to attend early care and education and childcare and development programs offered by participating family childcare providers (“providers”) and early learning and care centers (“centers”), as defined in the ordinance, at no cost. Eligible children are defined as between the ages of 2.5 and 5 years, with a parent, legal guardian, foster parent, or legal caregiver who resides or is employed within the boundaries of the South San Francisco Unified School District (“School District”).
Centers and providers that are paid with revenue from the tax for eligible children to attend must be located within the boundaries of the School District and must compensate teachers and staff members who are providing early care education to eligible children in amounts determined through a process described in the ordinance. Funding from the tax would pay for up to 10 hours of care and learning for eligible children each day. Participating centers and providers would have to offer half-day and full-day schedules and year-round and school-year schedules.
Second, revenue from the tax could be used for “establishment or improvement of infrastructure for eligible Centers and Providers, including lease, purchase, development, maintenance, or improvement of facilities, as well as shared administrative, human resource services, and employee benefits.”
Third, tax revenue could be used for the administrative costs of the City that are necessary to implement the tax, not to exceed 10 percent of each year’s tax revenue.
Fourth, revenue from the tax could be used to pay stipends to members of an oversight committee to be established pursuant to the ordinance. The oversight committee’s role would be to monitor the implementation of the ordinance; review financial information relevant to the tax; conduct regular public hearings on the program and report public input; evaluate the program; and advise regarding the compensation levels for teachers and staff noted above.
The ordinance calls for an “administrative organization,” which may be a non-profit entity or the City’s Parks and Recreation Department, to administer aspects of the ordinance.