City Council Agenda Report
Meeting Date: November 7, 2023
From: Lisa Pope, City Clerk
Department: City Clerk
Submitted by: Lisa Pope, City Clerk
Subject
April 9, 2024 General Municipal Election
Recommendation
A. Adopt Resolution No. 2023-26 calling and giving notice of an all-mail ballot General Municipal Election to be held on Tuesday, April 9, 2024, for the election of a City Council Member as required by the provisions of the Charter of the City of Vernon and to submit a ballot measure to the voters to establish a transient occupancy tax;
B. If desired, determine authors of arguments and rebuttals; C. Direct the City Clerk to transmit a copy of the measure to the City Attorney for preparation of the impartial analysis; and
D. Adopt Resolution No. 2023-27 requesting the Board of Supervisors of the County of Los Angeles render specified services to the City relating to the conduct of a General Municipal Election to be held on Tuesday, April 9, 2024.
Background
Pursuant to Vernon Charter Section 5.1 and Municipal Code Section 2.28.020, the City of Vernon conducts all-mail ballot General Municipal Elections on the second Tuesday of April each year.
The City Council is required to adopt various resolutions to begin the election process.
Resolution Calling the Election
The first resolution calls the election on Tuesday, April 9, 2024, for the election of one member of the City Council for a full five (5) year term and to submit a ballot measure to the voters to establish a transient occupancy tax.
Ballot Measure
On August 31, 2023, zoning changes went into effect allowing hotels in the City of Vernon.
Transient occupancy taxes (TOT) are not paid by residents nor hotel operators but instead are paid by visitors staying in hotels and help fund local services visitors use while staying in the City.
The zoning changes also allow the development of single-family and multifamily residential properties. The TOT would apply to short-term rental (less than 30 days) of those properties typically through e-commerce sites such as Airbnb.
Of the 88 cities in Los Angeles County, only 15 cities including Vernon do not have a TOT. The average rate for the 73 cities with a TOT is 10.5%. The rate for the cities’ immediately surrounding Vernon is 14% for the City of Los Angeles, 12% for County Unincorporated, 12% for Commerce, 5% for Maywood, and 5% for Huntington Park. Staff recommends a 10% TOT.
The proposed ballot measure requires approval by a simple majority of those casting ballots on the measure. Pursuant to California Elections Code Section 13119(b), the proposed ballot language must include an estimate of the annual revenue to be raised by the tax. Because there are no existing hotels in Vernon, staff conducted an analysis of projected TOT revenue in conjunction with Willdan Financial Services, a third-party consultant with expertise in public sector finance and TOT studies. Based on a conservative estimate of 20 hotel rooms in the rezoned areas and using a weighted average of Revenue per Available Room based on the total room inventory in three selected submarkets (Los Angeles – Southeast, Pasadena/Glendale/Burbank, and South Bay), staff and Willdan estimate total annual hotel revenue of $845,390. With the proposed TOT rate of 10%, the City could expect to collect approximately $84,539 in annual TOT revenues.
Written Arguments and Rebuttals
The Elections Code provides regulations for written arguments and rebuttals, including deadlines for submission. Arguments are due no later than November 21, 2023, and rebuttals must be submitted by December 4, 2023.
If the City Council desires to delegate this responsibility to one or two members, it should determine the authors.
Impartial Analysis
Elections Code Section 9280 provides for the City Attorney to prepare an impartial analysis, showing the effect of the measure. The impartial analysis is due on the same date as the initial arguments, November 21, 2023.
Resolution Requesting County Services
The second resolution requests the services of the Los Angeles County Elections Department to provide appropriate forms, signature verification services, and prepare, print, and mail official ballots and ballot materials.
Candidate Statement Regulations
Elections Code Section 13307 allows candidates to prepare a candidate statement for inclusion in the voter’s pamphlet.
On October 21, 2014, the Council adopted Resolution No. 2014-64 adopting regulations regarding candidate statements submitted to voters. This resolution applies to the April 2024 election.
Nomination Period
The nomination period begins on December 18, 2023, at which time candidates may obtain nomination papers and required filing materials from the City Clerk Department. The last day to file nomination papers is January 16, 2024. If the incumbent fails to file, the nomination period will be extended to January 22, 2024.
Ballot Drop-Off Locations
In prior elections, the City has offered an additional ballot drop-off location on election day. Staff will consider options for providing the best value for voters and will inform voters of such.
Fiscal Impact
The fiscal impact is estimated at $20,000. Sufficient funds are available in the General Fund, City Clerk Department, Elections Account No. 011-010-125-529300 for the current fiscal year.
Attachments
1. Resolution No. 2023-26
2. Resolution No. 2023-27
3. Resolution No. 2014-64