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HomeMy WebLinkAboutItem 4a - Signature Verification - UUT Repeal InitiativeGPyIF0R'N r /� �lu6ust 5, 1903 -11p� -42 it, of v i j DATE: June 3, 2014 TO: Honorable Mayor and City Council STAFF REPORT Office of the City Clerk FROM: Dominic Lazzaretto, City Manager Stephen P. Deitsch, City Attorney Prepared By: Lisa Mussenden, Chief Deputy City Clerk /Records Manager SUBJECT: VERIFICATION OF SUFFICIENCY OF SIGNATURES ON UTILITY USERS TAX REPEAL INITIATIVE MEASURE AND REQUEST FOR FURTHER DIRECTION FROM CITY COUNCIL Recommended Action: Receive, File and Accept Certificate of Sufficiency of Initiative Petition from the City Clerk; and Direct Staff to Prepare A Report Analyzing Its Impact SUMMARY On April 7, 2014, proponents of a Utility Users Tax repeal initiative measure filed a signed petition with the City Clerk's office. Pursuant to the California Elections Code, the petitions were examined for signature verification by the City Clerk's Office with assistance from the Los Angeles County Registrar- Recorder /County Clerk. In a letter dated May 19, 2014, the City Clerk's Office verified that the petition contained 770 valid signatures and notified the proponents of this fact. Under State Law, the Petition needed 733 signatures to qualify the Measure for the ballot. Therefore, the measure has obtained the required signatures. The remainder of this report will provide the City Council with options under the California Elections Code. The recommendation is to direct staff to prepare a report on the potential impacts of the measure, which would be required within 30 days. DISCUSSION On September 23, 2013, the City received a Notice of Intent to Circulate a Petition and proposed initiative measure ( "Measure ") from Arcadia residents /proponents that would amend the City's Municipal Code in the following ways: • Repeals the Utility Users Tax ( "UUT ") in its entirety (for all utilities currently taxed telecom, electricity, gas and water); Certificate of Sufficiency of Initiative Petition June 3, 2014 Page 2 of 3 • Prohibits the City from enacting or enforcing any ordinance or regulation which requires the payment, remittance or collection of any tax, fee, charge, or assessment, for the generation, sale, lease, purchase, supply, use, or delivery of any utility goods or services, including but not limited to gas, telecommunications service, cable, water, video services, and electricity; • Authorizes the Measure's proponents or any person who pays any sum described in the Measure to defend it in the event of legal challenge; and • Provides that the Measure may not be repealed except by a 2/3 vote of Arcadia voters. In accordance with the Elections Code, the City Attorney's office prepared and sent a ballot title and summary of the Measure to the proponents on October 8, 2013. The proponents then had 6 months to gather enough signatures to qualify the Measure for the ballot. On April 7, 2014, the proponents submitted a signed petition to the City Clerk's Office. On May 19, 2014, the City Clerk's office verified that the petition contained 770 valid signatures to qualify the Measure for the ballot. The Elections Code normally requires the signatures of at least 10 percent of the City's registered voters. In that case, 770 signatures would not have been sufficient to qualify the Measure. However, because this concerns the repeal of a local tax, California Proposition 218 applies and it significantly reduces the signature requirement - only 5 percent of Arcadia voters who voted for any gubernatorial candidate at the last election (November, 2010). The City Clerk's office confirmed that 14,656 Arcadia voters voted for a candidate at the last gubernatorial election, therefore, 733 signatures were required. The Certificate of Sufficiency of Initiative Petition is attached to this report and it is recommended that the City Council receive, file, and accept the certificate as valid in all respects. Since the Measure has obtained the required number of signatures, tonight, the City Council's options under the Elections Code are as follows: a. Adopt the Measure as an ordinance, without alteration; b. Submit the Measure to the voters at the next regular municipal election. A "regular election" is one where Council Members are elected. That would be April 12, 2016; Certificate of Sufficiency of Initiative Petition June 3, 2014 Page 2 of 3 c. Submit the Measure to the voters at a special election between 88 and 103 days after the City Council calls the election (approximately September, 2014); d. Submit the Measure to the voters at a special election which is to be consolidated with the upcoming Statewide general election on November 4, 2014; e. Direct staff to prepare a report analyzing the impact of the Measure on the City's finances, ability to provide public services, and the like. Staff must present the report not later than 30 days after it is ordered by the City Council (July 1, 2014, City Council meeting). If the City Council chooses this option, once the report has been prepared and presented, the City Council will need to consider all available options, including a -d above. The proposed budget for FY 2014 -15 includes $6.7 million in UUT revenues, which is approximately 13 percent of overall General Fund revenues. While it can be asserted that a 13 percent drop in revenues would have a significant impact on services in the community, the precise impact of that loss in revenue cannot be accurately stated without further review and analysis by each City Department. In addition, there may be other economic impacts as a result of the Measure. Therefore, it is recommended that the City Council choose Option "e" above and direct staff to prepare a report to be presented at or before the July 1, 2014, City Council meeting. FISCAL IMPACT There is no fiscal impact to the budget as a result of City Council action on this item. However, the Measure would have a $6.7 million impact annually to the City's General Fund if approved by the voters. RECOMMENDATION It is recommended that the City Council: 1. Receive, file, and accept the Certificate of Sufficiency of Initiative Petition from the Chief Deputy City Clerk/Records Manager; and 2. Direct staff to prepare a report analyzing its impact and present the report to the City Council at its July 1, 2014 meeting. Attachment: Certificate of Sufficiency of Initiative Petition � pF. ARC C'NvtF0 r�9�r` Augusr 5, 3963 City of Arcadia Office of the City Clerk 240 W. Huntington Drive Post Office Box 60021 Arcadia, CA 91066 -6021 (626) 574 -5455 (626) 447 -7524 Fax www. ci.arcadia.ca.us CERTIFICATE OF SUFFICIENCY OF INITIATIVE PETITION I Lisa Mussenden, Chief Deputy City Clerk/Records Manager of the City of Arcadia, County of Los Angeles, State of California, hereby certify that: The petition for "An Initiative Measure Proposing to Repeal the City of Arcadia Utility Users Tax" was filed with the City Clerk Office on April 7, 2014. That said petition consists of 161 sections; That each section contains signatures purporting to be signatures of qualified electors of the City of Arcadia, California; That attached to this petition at the time it was filed, was an affidavit purporting to be the affidavit of the person who solicited the signatures, and containing the dates between which the purported qualified electors signed this petition; That the affiant stated his or her own qualification, that he or she had solicited the signatures upon that Section, that all of the signatures were made in his or her presence, and that to the best of his or her own information and belief, each signature to that section was the genuine signature of the person whose name it purports to be; That after the proponents filed this petition and based on the County of Los Angeles Registrar of Voters' Signature Verification Certificate, I have determined the following facts regarding this petition: 1. Total number of signature filed by proponent raw count: 984 2. Number of signatures found sufficient: 770 3. Number of signatures found insufficient: 214 4. Number of signatures insufficient because of duplication: 3 Based on the above, the petition is deemed to be sufficient. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Arcadia this 19th day of May, 2014. -4",L Lis Mpssenden Chi Deputy City Clerk/ Records Manager