Friday, August 9, 2024
12:30 p.m.
SPECIAL MEETING
Notice is hereby given that Mayor Bill Velto of the City Council, pursuant to Government Code Section 54956, does hereby call a Special Workshop of the Upland City Council Council Chamber and remote location
City Hall, 460 N. Euclid Avenue and Kaiser Permanente Regional Laboratory Lobby, 13000 Peyton Drive, Chino Hills CA
Residents may observe the City Council meetings remotely via livestream on the City website, Spectrum Cable TV Channel 3, or Frontier Cable TV Channel 26.
City of Upland Mission Statement
The City of Upland is committed to delivering superior services that meet community needs with transparency and integrity.
City of Upland Vision Statement
Upland is a safe community with historic character where residents enjoy a high quality of life.
Pages
1.CALL TO ORDER AND ROLL CALL
2.ORAL COMMUNICATIONS
Pursuant to Government Code Section 54954.2, any member of the public may address any item listed on the agenda. Anyone wishing to address the legislative body should submit a speaker card to the City Clerk at or prior to speaking. Speakers shall keep their comments to no more than three (3) minutes.
CAMPAIGN CONTRIBUTION DISCLOSURE: Pursuant Gov. Code § 84308, any party to a permit, license, contract, or other entitlement before the Council is required to disclose on the record any contribution, including aggregated contributions, of more than $250 made by the party or the party's agents within the preceding 12 months to any City official. Participants and agents are requested to make this disclosure as well. The disclosure must include the name of the party, participant, or agent, and any other person making the contribution; the name of the recipient, the amount of the contribution, and the date the contribution was made.
3.AGENDA ITEMS
a.CONSIDER ADOPTING RESOLUTIONS PLACING A SALES TAX MEASURE 4
ON THE NOVEMBER BALLOT
CEQA: Not a Project.
Recommended Action:
Take the following actions by at least two-thirds vote of the City Council:
Adopt a Resolution calling for the placement of a General Tax Measure - known as the City of Upland Infrastructure, Public Safety and City Services Measure - on the ballot for November 5, 2024 General Municipal Election for the submission to the qualified voters of an ordinance to enact a general transactions and use tax (sales tax) at the rate of one cent (1¢); and
1. Adopt a Resolution requesting the Board of Supervisors of the County of San Bernardino to consolidate a General Municipal Election to be held on November 5, 2024 with the Statewide General Election to be held on that date pursuant to §10403 of the Elections Code; and
2. Adopt a Resolution providing for the filing of primary and rebuttal arguments and setting rules for the filing of written arguments regarding a city measure to be submitted at the November 5, 2024 General Municipal Election. (Staff Person: Stephen Parker)
3. b.CONSIDER ADOPTING A RESOLUTION WITHDRAWING A GENERAL TAX MEASURE FROM THE NOVEMBER 5, 2024 BALLOT RELATING TO
BUSINESS LICENSE TAXES
23 CEQA: Not a Project.
Recommended Action:
Consider adopting a Resolution withdrawing a General Tax Measure from the November 5, 2024, General Municipal Election Ballot relating to amending various sections of Chapter 5.04 of the City’s Municipal Code as it relates to business license taxes. (Staff Person: Stephen Parker)
4.ADJOURNMENT
The next regularly scheduled City Council meeting is Monday, August 12, 2024.
NOTE: If you challenge the public hearing(s) or the related environmental determinations in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City of Upland, at, or prior to, the public hearing.
All Agenda items and back-up materials are available for public review at the Upland Public Library, at 450 North Euclid Avenue, the City Clerk's Office at 460 North Euclid Avenue and the City website at www.uplandca.gov .
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office, 909-931-4120.
Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102-35.104 ADA Title II] On August 8, 2024 a true and correct copy of this agenda was posted on the bulletin boards at 450 N. Euclid Avenue (Upland Public Library), 460 N. Euclid Avenue (Upland City Hall), 13000 Peyton Drive, Chino Hills, CA (Kaiser Permanente Laboratory) and the
City website at www.uplandca.gov
DATE: August 9, 2024
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: STEPHEN PARKER, ASSISTANT CITY MANAGER
SUBJECT: CONSIDER ADOPTING RESOLUTIONS PLACING A SALES TAX MEASURE ON THE
NOVEMBER BALLOT
RECOMMENDED ACTION:
It is recommended that the City Council take the following actions by at least two -thirds vote of the City Council; adopt a Resolution calling for the placement of a General Tax Measure - known as the City of Upland Infrastructure, Public Safety and City Services Measure - on the ballot for November 5, 2024 General Municipal Election for the submission to the qualified voters of an ordinance to enact a general transactions and use tax (sales tax) at the rate of one cent (1¢), adopt a Resolution requesting the Board of Supervisors of the County of San Bernardino to consolidate a General Municipal Election to be held on November 5, 2024 with the Statewide General Election to be held on that date pursuant to §10403 of the Elections Code, and adopt a Resolution providing for the filing of primary and rebuttal arguments and setting rules for the filing of written arguments regarding a city measure to be submitted at the November 5, 2024 General Municipal Election.
GOAL STATEMENT
The proposed action supports the City’s goal of being fiscally responsible.
BACKGROUND
For over three decades the City of Upland has taken many actions aimed at maintaining the General Fund and the services for residents that it provides. While Upland residents enjoy the local quality of life our community provides, the City’s bedroom community status keeps it at a financial deficit compared with other neighboring cities who have more robust commercial development.
The financial impacts to the City have changed over the years, but one common thread exists– continued actions of the State that have reduced and limited City revenues. The Upland 2001 Financial Workout Plan identified the State’s reallocation of property tax revenue to the Educational Relief Augmentation Fund as costing Upland $16 million in the 1990’s. The Upland 2013 Fiscal Condition Report was written on the heels of the State taking away the City’s Redevelopment Agency and, thereby millions of dollars in annual redevelopment funding. The City continues to deal with a long list of unfunded mandates from the State, most notably recent requirements for additional tracking and reporting in the Police Department.
Current challenges to the City budget include inflationary pressures and increased costs of repairing streets and facilities due to deferred maintenance. Those challenges, combined with employee staffing and compensation issues, causing higher turnover of employees and the lost benefit of the institutional knowledge and training dollars that were invested in them.
Beginning in the 1990’s, the City Council has proactively “kept its financial house in order” by reducing spending to levels consistent with revenue projections. Many City services have been outsourced, major cuts have bee n made, and employee concessions have been repeatedly requested. While that methodology has allowed the City to maintain its current finances, it has not allowed Upland to make sufficient investments in the areas our residents have expressed a strong desire: maintaining local streets, repairing potholes and sidewalks, providing quick responses to 9-1-1 emergencies, and addressing homelessness.
ISSUES AND ANALYSIS
On July 22, 2024, the City Council adopted Resolutions placing a business license tax measure on the November ballot. During that meeting there was discussion regarding the placement of a sales tax measure on the November 5,
2024 General Municipal Election ballot. Mayor Pro Tem Breitling affirmed the necessity of the business license tax measure, but expressed the importance of the City pursuing a sales tax measure. Based on that City Council discussion and residents desire for better streets that are free of potholes and for the City to provide critical essential services like police and fire protection and emergency response, staff prepared resolutions for Council’s consideration. As there was no regularly scheduled City Council meeting prior to the deadline established in the Elections Code, a special meeting was required to consider this item.
The placement of a sales and use tax measure on an election ballot requires a 2/3 affirmative vote of the City Council and requires resolutions of the Council be adopted by the deadline of August 9, 2024, for a measure to appear on the November 5, 2024, ballot.
Additional sales tax revenue to stabilize the city’s finances by providing consistent revenue that cannot be taken away by the State would have a substantial positive impact on the City’s ability to improve and maintain infrastructure including repairing major roads and neighborhood streets, fixing potholes and repairing sidewalks, improving 9-1-1 response, neighborhood police patrols, and enhancing programs to reduce crime and gang activity and address homelessness, keeping public areas safe and clean and attracting and retaining local businesses and jobs.
ENVIRONMENTAL DETERMINATION
The proposed action is not subject to the California Environmental Quality Act (CEQA). Section 15378 of the CEQA Guidelines defines a project subject to CEQA. The proposed action is not included within the definition of a “project” and thus is exempt.
FISCAL IMPACTS
Based on prior election costs, a ballot measure on the November 2024 General Municipal Election was estimated to cost $25,000 and is included in the City Clerk’s FY 24/25 operating budget.
If approved by the voters, the new revenue would be considered general tax revenue, though the City would establish a separate fund for tracking and reporting purposes. The proceeds would be audited as a part of the City’s annual audit along with the rest of the City’s funds. The general transactions and use tax (sales tax) is estimated to produce approximately $20 million in additional revenue annually.
ALTERNATIVES
Provide alternative direction to staff.
CEQA: Not a Project.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
UPLAND, CALIFORNIA CALLING FOR THE PLACEMENT OF A
GENERAL TAX MEASURE — KNOWN AS THE CITY OF
UPLAND INFRASTRUCTURE, PUBLIC SAFETY AND CITY
SERVICES MEASURE — ON THE BALLOT FOR THE
NOVEMBER 5, 2024 GENERAL MUNICIPAL ELECTION FOR
THE SUBMISSION TO THE QUALIFIED VOTERS OF AN
ORDINANCE TO ENACT A GENERAL TRANSACTIONS AND
USE TAX (SALES TAX) AT THE RATE OF ONE CENT (1¢)
WHEREAS, Upland desires to keep the city safe, clean, and well-maintained, to help protect local property values and keep Upland a special place to live; and
WHEREAS, the City Council of the City of Upland (“City”) is authorized to levy a Transactions and Use Tax (“sales tax”) for general purposes pursuant to California Revenue and Taxation Code section 7285.9, subject to approval by a majority vote of the electorate pursuant to Article XIII C, section 2 of the California Constitution (“Proposition 218”); and
WHEREAS, pursuant to California Elections Code section 9222, the City Council has authority to place local measures on the ballot to be considered at a Municipal Election; and
WHEREAS, the City Council would like to submit to the voters at the November 5, 2024 General Municipal Election a measure enacting a general sales tax at a rate of one cent (1¢) on the sale and/or use of all tangible personal property sold at retail in the City until it is ended by voters, as more specifically set forth in the attached proposed ordinance adding Chapter 3.06 to Title 3 of the City’s Municipal Code; and
WHEREAS, the one cent (1¢) sales tax is a general tax, the revenue of which will be placed in the City’s general fund and will be used to pay for important general City services; and
WHEREAS, the locally controlled funding this measure would provide is needed to keep up with basic repairs and maintenance to public facilities, water infrastructure, storm drains, streets, and sidewalks, which will be a lot more expensive to repair in the future if not addressed now, and
WHEREAS, this measure will provide additional general funding that could be used to increase the number of police officers to respond to local 9-1-1 emergency calls; and
WHEREAS, the measure as written provides strict accountability requirements including independent citizen oversight, annual audits, and public disclosure of how all funds are spent, and
WHEREAS, without this measure, Upland will not have the local funds to address basic local services that residents have indicated are important, including maintaining local streets and alleys, repairing potholes, providing quick responses to
Resolution No.
9-1-1 emergencies, reducing gang activity and drug-related crimes, providing police services including neighborhood police patrols and crime investigations, maintaining parks, cleaning up piles of trash and litter that people dump along streets, sidewalks, and in public areas, and addressing homelessness, and
WHEREAS, on November 6, 1996, the voters of the State of California approved Proposition 218, an amendment to the State Constitution which requires that all general taxes which are imposed, extended or increased must be submitted to the electorate and approved by a majority vote of the qualified electors voting in the election; and
WHEREAS, pursuant to Proposition 218 (California Constitution, Article XIII C, § 2(b)), the general rule is that any local election for the approval of an increase to a general tax must be consolidated with a regularly scheduled general election for members of the governing body of the local government; and
WHEREAS, the next regularly scheduled general election at which City Council members are to be elected is November 5, 2024; and
WHEREAS, pursuant to Government Code section 53724 (“Proposition 62”) and Revenue and Taxation Code section 7285.9, a two-thirds (2/3) vote of all members of the City Council is required to place the Measure on the November 5, 2024 ballot; and
WHEREAS, the ordinance to be considered by the qualified voters and the terms of approval, collection and use of the general sales tax are described and provided for in the ordinance/measure attached hereto as Exhibit “A” (the “Measure”) and by this reference made an operative part hereof, in accordance with all applicable laws.
NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines and resolves as follows:
Section 1. Incorporation of Recitals. The foregoing recitals are true and correct and are hereby incorporated and made an operative part of this Resolution.
Section 2. Submission of Ballot Measure. Pursuant to California Elections Code section 9222, Government Code section 53724, Revenue and Taxation Code section 7285.9 and any other applicable requirements of the laws of the State of California relating to the City, the City Council, by a two-thirds (2/3) vote of all members, hereby orders the Measure to be submitted to the voters of the City at the General Municipal Election to be held on Tuesday, November 5, 2024.
Section 3. The City Council, pursuant to California Elections Code section 9222, hereby orders that the Measure shall be presented and printed upon the ballot submitted to the qualified voters in the manner and form set forth in this Section 3. On the ballot to be submitted to the qualified voters at the General Municipal Election to be held on Tuesday, November 5, 2024, in addition to any other matters required by law, there shall be printed substantially the following ballot question:
Resolution No.
City of Upland Infrastructure, Public Safety and City Services Measure “To improve and maintain infrastructure, including repaving major roads/neighborhood streets, and repairing
potholes/sidewalks; and preventing cuts to 9-1-1 emergency response, neighborhood police patrols, gang/crime prevention and addressing homelessness, shall the measure establishing a one-cent sales tax, generating approximately $20,000,000 annually for general city services, which cannot be taken by Sacramento, with citizen oversight, independent audits, disclosure, and local control by Upland, be adopted?”
YES
NO
Section 4. Conduct of Election. The City Clerk is authorized, instructed, and directed to procure and furnish any and all official ballots, printed matter and all supplies, equipment and paraphernalia that may be necessary in order 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.
Section 5. Pursuant to Elections Code section 9280, the City Council hereby directs the City Clerk to transmit a copy of the Measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the Measure, not to exceed 500 words in length, showing the effect of the Measure on the existing law and the operation of the Measure, and transmit such impartial analysis to the City Clerk not later than the deadline for submittal of primary arguments for or against the Measure. The City Council directs that arguments for and against the measure may be filed in accordance with applicable law, and that neither City Council as a body or any individual member of Council is directed to file a written argument or any rebuttal argument for or against the measure.
The impartial analysis shall include a statement indicating whether the Measure was placed on the ballot by a petition signed by the requisite number of voters or by the City Council. In the event the entire text of the Measure is not printed on the ballot, nor in the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-font bold type, the following: “The above statement is an impartial analysis of Ordinance or Measure _____. If you desire a copy of the ordinance or measure, please call the Office of the City Clerk at (909) 931-4120 and a copy will be mailed at no cost to you.”
Section 6. Notice of the election is hereby given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form and manner as required by law.
Section 7. Placement on the Ballot. The full text of the Measure shall not be printed in the voter information guide. A statement shall be printed on the ballot pursuant to Elections Code section 9223 advising voters that they may obtain a copy of this Resolution and the Measure, at no cost, upon request made to the City Clerk.
Section 8. Filing with County. The City Clerk shall, not later than the 88th day prior to the General Municipal Election to be held on Tuesday, November 5, 2024, file
Resolution No.
with the Board of Supervisors and the County Clerk – Registrar of Voters of the County of San Bernardino, State of California, a certified copy of this Resolution.
Section 9. Public Examination. Pursuant to Elections Code section 9295, this Measure will be available for public examination for no fewer than ten (10) calendar days prior to being submitted for printing in the voter information guide. The City Clerk shall post notice in the Clerk’s office of the specific dates that the examination period will run.
Section 10. The City Council hereby finds and determines that the Measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5).
Section 11. Severability. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity.
Section 12. This Resolution shall become effective upon its adoption.
Section 13. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED and ADOPTED this 9th day of August, 2024.
Bill Velto, Mayor
I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a special meeting of the City Council held on the 9th day of August, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
ATTEST:
Keri Johnson, City Clerk
Exhibit “A”
Transactions and Use Tax Ordinance
[attached behind this page]
ORDINANCE NO. XXXX
AN ORDINANCE OF THE PEOPLE OF THE CITY OF
UPLAND, CALIFORNIA, ADDING CHAPTER 3.06 TO TITLE
3 OF THE UPLAND MUNICIPAL CODE TO ENACT A ONE-
CENT (1¢) GENERAL TRANSACTIONS AND USE TAX
(SALES TAX) TO BE ADMINISTERED BY THE CALIFORNIA
DEPARTMENT OF TAX AND FEE ADMINISTRATION
WHEREAS, pursuant to California Revenue and Taxation Code section 7285.9 the City of Upland (“City”) is authorized to levy a Transactions and Use Tax for general purposes, subject to majority voter approval; and
WHEREAS, the People of the City desire to levy a Transactions and Use Tax for general purposes until repealed to fund important general City services, at a rate of one cent (1¢); and
WHEREAS, if approved by the City Council and Upland voters, the Transactions and Use Tax Ordinance will be incorporated into Chapter 3.06 of Title 3 of the Upland Municipal Code.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF UPLAND DO
HEREBY ORDAIN AS FOLLOWS:
Section 1. Title and Text. This Ordinance shall be known as the Upland Transactions and Use Tax Ordinance, the full text of which is set forth in Attachment “1”, attached hereto and incorporated herein by reference.
Section 2. Approval by the City Council. Pursuant to California Government Code section 53724 and Revenue and Taxation Code section 7285.9, this Ordinance was duly approved for placement on the ballot by a minimum two-thirds (2/3) supermajority of all members of the City Council on August 9, 2024.
Section 3. Approval by the Voters. Pursuant to California Elections Code section 9217, this Ordinance shall be deemed adopted and take effect only if approved by a majority of the eligible voters of the City of Upland voting at the General Municipal Election of November 5, 2024. It shall be deemed adopted when the City Council has certified the results of that election by resolution and shall take effect ten (10) days thereafter.
Section 4. Operative Date. “Operative Date” for the Transactions and Use Tax means the first day of the first calendar quarter commencing more than 110 days after the date this Ordinance is adopted, as set forth in Section 3 above.
Section 5. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
I hereby certify that the Upland Transactions and Use Tax Ordinance was PASSED, APPROVED, AND ADOPTED by the People of the City of Upland on the 5th day of November, 2024.
CITY OF UPLAND
Bill Velto, Mayor
ATTEST:
_________________________________
Keri Johnson, City Clerk
Chapter 3.06 – TRANSACTIONS AND USE TAX
Sections:
3.06.010 - Purpose.
3.06.020 - Contract With State.
3.06.030 - Transactions Tax Rate.
3.06.040 - Place of Sale.
3.06.050 - Use Tax Rate.
3.06.060 - Adoption of Provisions of State Law.
3.06.070 - Limitations on Adoption of State Law and Collection of Use Taxes.
3.06.080 - Permit Not Required.
3.06.090 - Exemptions and Exclusions.
3.06.100 - Amendments.
3.06.110 - Enjoining Collection Forbidden.
3.06.120 - Duration of Tax
Sections:
3.06.010 - Purpose.
This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.
D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time,
minimize the burden of record-keeping upon persons subject to taxation under the provisions of this ordinance.
3.06.020 - Contract With State.
Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
3.06.030- Transactions Tax Rate.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one percent (1%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.
3.06.040 - Place of Sale.
For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
3.06.050 - Use Tax Rate.
An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one percent (1%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.
3.06.060 - Adoption of Provisions of State Law.
Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.
3.06.070 - Limitations on Adoption of State Law and Collection of Use Taxes.
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:
1. The word “State” is used as a part of the title of the State Controller, State Treasurer, California Victim Compensation Board, California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California;
2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance.
3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.
4. In reference to Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
B. The word “city” shall be substituted for the word “state” in the phrase “retailer engaged in business in this state” in Section 6203 of the Revenue and Taxation Code and in the definition of that phrase in Section 6203.
1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other
pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
3.06.080 - Permit not Required.
If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this ordinance.
3.06.090 - Exemptions and Exclusions.
A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.
2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this subsection, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this subsection, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any
representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
7. “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.
D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
3.06.100 - Amendments.
All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
3.06.110 - Enjoining Collection Forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
3.06.120 – Duration of Tax.
The tax imposed by this chapter shall continue until this ordinance is repealed.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UPLAND,
CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE
COUNTY OF SAN BERNARDINO TO CONSOLIDATE A GENERAL
MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024 WITH THE
STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE
PURSUANT TO §10403 OF THE ELECTIONS CODE
WHEREAS, on August 9, 2024, the City Council of the City of Upland adopted Resolution No. XXXX, calling a General Municipal Election to be held on November 5, 2024; for the purpose of submitting to the voters the question relating to the Transactions and Use Tax; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and that the election department of the County of San Bernardino canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.
NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines and resolves as follows:
Section 1. Request for Consolidation. Pursuant to the requirements of §10403 of the Elections Code, the Board of Supervisors of the County of San Bernardino is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 5, 2024, for the purpose of submitting to the voters the following question relating to the Transactions and Use Tax.
Section 2. Measure Language. A measure is to appear on the ballot as follows:
City of Upland Infrastructure, Public Safety and City Services Measure “To improve and maintain infrastructure, including repaving major roads/neighborhood streets, and repairing
potholes/sidewalks; and preventing cuts to 9-1-1 emergency response, neighborhood police patrols, gang/crime prevention and addressing homelessness, shall the measure establishing a one-cent sales tax, generating approximately $20,000,000 annually for general city services, which cannot be taken by Sacramento, with citizen oversight, independent audits, disclosure, and local control by Upland, be adopted?”
YES
NO
Section 3. Canvass of Returns. The County election department is authorized to canvass the returns and perform all other proceedings incidental to and connected with the General Municipal Election. The Election shall be held in all respects as if there were only one election, and only one form of ballot shall be
Resolution No. XXXX
used. Pursuant to California Elections Code Sections 10403 and 10418, the election will be held and conducted in accordance with the provisions of law regulating the Statewide General Election.
Section 4. Necessary Steps. The Board of Supervisors is requested to issue instructions to the County election department to take any and all steps necessary for the holding of the consolidated election.
Section 5. Costs. The City Council determines and declares that the City will pay to the County the reasonable and actual expenses incurred by the County by the consolidation of the General Municipal Election with the Statewide General Election. The City shall reimburse the County for services performed when the work is completed and upon presentation to the City of a properly approved bill.
The City Manager of the City of Upland is authorized and directed to pay for the expenses incurred after receiving a statement from the County of San Bernardino.
Section 6. Filing of Resolution. The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the election department of the County of San Bernardino.
Section 7. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED and ADOPTED this 9th day of August, 2024.
Bill Velto, Mayor
I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a special meeting of the City Council held on the 9th day of August, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
ATTEST:
Keri Johnson, City Clerk
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UPLAND,
CALIFORNIA, PROVIDING FOR THE FILING OF PRIMARY AND
REBUTTAL ARGUMENTS AND SETTING RULES FOR THE FILING OF
WRITTEN ARGUMENTS REGARDING A CITY MEASURE TO BE
SUBMITTED AT THE NOVEMBER 5, 2024 GENERAL MUNICIPAL
ELECTION
WHEREAS, a General Municipal Election is to be held in the City of Upland, California on November 5, 2024, at which there will be submitted to the voters the following measure:
City of Upland Infrastructure, Public Safety and City Services Measure “To improve and maintain infrastructure, including repaving major roads/neighborhood streets, and repairing
potholes/sidewalks; and preventing cuts to 9-1-1 emergency response, neighborhood police patrols, gang/crime prevention and addressing homelessness, shall the measure establishing a one-cent sales tax, generating approximately $20,000,000 annually for general city services, which cannot be taken by Sacramento, with citizen oversight, independent audits, disclosure, and local control by Upland, be adopted?”
YES
NO
NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines and resolves as follows:
Section 1. Primary Arguments. That the City Council directs that arguments for and against the measure may be filed in accordance with applicable law, and that neither City Council as a body or any individual member of Council is directed to file a written argument or any rebuttal argument for or against the measure, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, and to change the argument until and including the date fixed below by the City Clerk, after which no arguments for or against the City measure may be submitted to the City Clerk.
The deadline to submit arguments for or against the City Measure pursuant to this Resolution is declared by the City Clerk to be Monday, August 19, 2024, at 12:00 p.m. Each argument shall not exceed 300 words and shall be filed with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument.
Section 2. Rebuttal Arguments. Pursuant to Section 9285 of the Elections Code of the State of California, when the City Clerk has selected the primary arguments for and against the City Measure which will be printed and distributed to the voters, the Clerk shall send copies of the primary argument in favor of the
Resolution No.
Measure to the authors of the primary argument against, and copies of the primary argument against to the authors of the primary argument in favor. The authors or persons designated by them may prepare and submit rebuttal arguments not exceeding 250 words. The rebuttal arguments shall be filed with the City Clerk not later than Thursday, August 22, 2024, at 5:00 p.m. Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut.
Section 3. Prior Resolutions. That all previous resolutions providing for the filing of primary and rebuttal arguments related to City measures are repealed.
Section 4. November 5, 2024 Election. That the provisions of Sections 1 and 2 shall apply only to the election to be held on November 5, 2024, and shall then be repealed.
Section 5. Certification. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original Resolutions.
PASSED, APPROVED and ADOPTED this 9th day of August, 2024.
Bill Velto, Mayor
I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a special meeting of the City Council held on the 9th day of August, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
ATTEST:
Keri Johnson, City Clerk
DATE: August 9, 2024
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: STEPHEN PARKER, ASSISTANT CITY MANAGER
KERI JOHNSON, CITY CLERK
SUBJECT: CONSIDER ADOPTING A RESOLUTION WITHDRAWING A GENERAL TAX MEASURE FROM THE NOVEMBER 5, 2024 BALLOT RELATING TO BUSINESS LICENSE TAXES
RECOMMENDED ACTION:
It is recommended that the City Council consider adopting a Resolution withdrawing a General Tax Measure from the November 5, 2024 General Municipal Election Ballot relating to amending various sections of Chapter 5.04 of the City’s Municipal Code as it relates to business license taxes.
GOAL STATEMENT
The proposed action supports the City’s goal of being fiscally responsible.
BACKGROUND
On July 22, 2024 the City Council adopted Resolution No. 6785, Resolution No. 6786, and Resolution No. 6787.
These resolutions called for the placement of a Business License Tax Measure on the November 5, 2024 General Municipal Election ballot, requested the Board of Supervisors of the County of San Bernardino to consolidate a General Municipal Election to be held on November 5, 2024 with the Statewide General Election to be held on that date pursuant to §10403 of the Elections Code, and provided for the filing of primary and rebuttal arguments and setting rules for the filing of written arguments regarding a city measure to be submitted at the November 5, 2024 General Municipal Election.
At the July 22, 2024 City Council meeting there was discussion regarding the placement of a sales tax measure on the November 5, 2024 General Municipal Election ballot. Subsequently staff prepared resolutions for Council’s consideration of this action.
ISSUES AND ANALYSIS
Should the Council choose to move forward with adopting resolutions submitting to the voters at the November 5, 2024 General Municipal Election a measure enacting a general sales tax at a rate of one cent (1¢) on the sale and/or use of all tangible personal property sold at retail in the City, there is also the option to withdraw the General Tax Measure relating to amending various sections of Chapter 5.04 of the City’s Municipal Code as it relates to business license taxes.
The deadline for withdrawal of a measure from the November 5, 2024 ballot is August 14, 2024.
ENVIRONMENTAL DETERMINATION
The proposed action is not subject to the California Environmental Quality Act (CEQA). Section 15378 of the CEQA Guidelines defines a project subject to CEQA. The proposed action is not included within the definition of a “project” and thus is exempt.
FISCAL IMPACTS
The estimated cost of placing a ballot measure on the November 2024 General Municipal Election is approximately $25,000, which is the estimated savings to the City with the removal of the Business License Tax Measure.
ALTERNATIVES
Provide alternative direction to staff.
CEQA: Not a Project.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UPLAND,
CALIFORNIA WITHDRAWING A GENERAL TAX MEASURE FROM
THE NOVEMBER 5, 2024 GENERAL MUNICIPAL ELECTION
BALLOT RELATING TO AMENDING VARIOUS SECTIONS OF
CHAPTER 5.04 OF THE CITY’S MUNICIPAL CODE AS IT RELATES TO BUSINESS LICENSE TAXES.
WHEREAS, by its adoption of Resolutions 6785, 6786 and 6787 on July 22, 2024, the City Council called and ordered the submission of a ballot measure at the November 5, 2024 General Municipal Election that would amend various sections of Chapter 5.04 of the Upland Municipal Code to change the rates and terms of the City’s Business License Tax; and
WHEREAS, California Elections Code section 9605 authorizes the City, by City Council resolution, to amend or withdraw a previously-called ballot measure, at any time before the 83rd day prior to the election (August 14, 2024); and
WHEREAS, after reconsideration, the City Council desires to withdraw the measure from the November 5, 2024 General Municipal Election ballot by rescinding Resolutions 6785, 6786 and 6787 and to cancel all further election proceedings for the ballot measure.
NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines and resolves as follows:
Section 1. Withdrawal of Ballot Measure from November 5, 2024 General Municipal Election. The City Council, pursuant to Section 9605 of the California Election Code, does hereby rescind Resolution No. 6785, Resolution No. 6786, and Resolution No. 6787 thereby withdrawing the following ballot measure from the November 5, 2024 General Municipal Election:
“Upland public safety, streets, city services measure
Shall the measure maintaining 911 emergency response,
neighborhood police patrols; repairing streets, potholes; cleaning/maintaining public areas, addressing homelessness; retaining local businesses; and general City services by updating Upland’s business license tax to establish rates set forth in the measure, reducing taxes on small businesses, no tax increase on residents, generating approximately $3,500,000 annually until ended by voters; requiring public spending disclosure, audits, l ocal funding control, be adopted?”
YES
NO
The ballot measure shall not be printed in the ballot and no further election proceedings shall be undertaken with respect to the ballot measure, except as necessary to remove it from the ballot as set forth herein.
Section 2. November 5, 2024 General Municipal Election To Be Held for All Other Election Matters. This Resolution only removes the referenced ballot measure from the ballot.
Pursuant to applicable provisions of the California Elections Code, the November 5, 2024 General Municipal Election will be held and conducted to elect qualified candidates to City elective offices as well as for voters to consider any other City initiative, referendum, recall or other ballot measure that qualifies and is placed on the ballot for that Election.
Resolution No.
Section 3. Filing with County. The City Clerk shall, not later than the 83rd day prior to the General Municipal Election to be held on Tuesday, November 5, 2024, file with the Board of Supervisors and the County Clerk – Registrar of Voters of the County of San Bernardino, State of California, a certified copy of this Resolution. The County Clerk - Registrar of Voters is authorized, instructed, and directed to take all appropriate action to remove the ballot measure from the November 5, 2024 General Municipal Election as set forth herein.
Section 4. The City Council hereby finds and determines that the Measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5).
Section 5. Severability. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity.
Section 6. This Resolution shall become effective upon its adoption.
Section 7. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED and ADOPTED this 9th day of August 2024.
Bill Velto, Mayor
I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a special meeting of the City Council held on the 9th day of August, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
ATTEST:
Keri Johnson, City Clerk