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HomeMy WebLinkAboutItem 2a - UUT Repeal Impact��'� GP1.1FOk�y�q`y 1r ra STAFF REPORT Office of the City Manager DATE: July 1, 2014 TO: Honorable Mayor and City Council FROM: Dominic Lazzaretto, City Manager Prepared By: Yvonne Yeung, Senior Management Analyst SUBJECT: ELECTIONS CODE 9212 REPORT RELATING TO THE UTILITY USERS TAX REPEAL INITIATIVE MEASURE Recommendation: Receive and file the report and provide direction on placing the initiative on an upcoming ballot SUMMARY On June 3, 2014, the City Council received, filed, and accepted the Certificate of Sufficiency of Initiative Petition for a proposed Utility Users Tax ( "UUT ") repeal initiative measure. At the same meeting, the City Council directed staff to prepare a report, within 30 days, on the impact of the measure. The purpose of this staff report is to present a preliminary impact analysis of the UUT repeal measure on the City's finances and its ability to provide public services. It is recommended that the City Council receive and file the report and provide direction on placing the initiative on an upcoming ballot. BACKGROUND UUTs are taxes levied by local governments on the consumption of utility services, including electricity, gas, water, sewer, telecommunications, sanitation, and cable television. Currently, there are 154 cities and 4 counties in the State of California that have UUTs. The City of Arcadia collects UUTs on electricity, gas, and water at 7% of gross sales and telecommunications at 5 %. Over the years, the City has taken the following actions related to the UUT: • On June 30, 1970, the City Council adopted a 5% UUT on the usage of water, gas, electricity, and telephone utility services via Ordinance No. 1415. • On June 30, 1978, the City increased the maximum rate for each tax to 7% via Ordinance No. 1645. UUT Repeal Impact Analysis July 1, 2014 Page 2 of 11 • On May 15, 1979, the City suspended the water UUT (0% collected) via Ordinance No. 1677. • On June 3, 1980, the City partially suspended the gas and electricity UUT to a 5% rate via Ordinance No. 1704. • On August 1, 1989, the City reduced the maximum rate for telephone UUT to 5% via Ordinance No. 1909. • On November 5, 1996, California voters passed Proposition 218, requiring voter approval for the introduction or increase of general taxes, assessments, and certain user fees. • On June 9, 2009, Arcadia residents approved Measure A updating the City's UUT Ordinance to include modern and future telephone /telecommunications services, with 76.5% of voters supporting the Measure. The Measure ratified the maximum UUT of 7% on gas, water, and electric rates and 5% on telecommunications and allows the City to temporarily reduce the rate as part of the annual budgeting process. • On July 2, 2013, the City Council adopted Ordinance No. 2311 reinstating the UUT rate for water at 7% and returning the UUT on gas and electricity at the originally approved rate of 7% in order to meet the City's future capital improvement and equipment replacement needs. The UUT rate for telephone /telecommunications remains at 5 %. An average Arcadia resident pays approximately $7.22 per person per month on all UUTs combined — less than a cup of coffee per week. Commercial businesses tend to have heavier utility consumptions and pay more. Collectively, the UUTs are the third largest revenue source for the City, generating millions of dollars in City revenues each year, paying for integral services that the City provides to its 56,464 residents on a daily basis. On September 23, 2013, the City received a Notice of Intent to Circulate a Petition and a proposed initiative measure ( "Measure ") from Arcadia residents that would amend the City's Municipal Code in the following ways: • Repeals the UUT in its entirety (for all utilities currently taxed, including telecommunications, electricity, gas, and water); • 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 UUT Repeal Impact Analysis July 1, 2014 Page 3 of 11 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. On October 8, 2013, 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. The proponents then had six 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. A total of 733 signatures were required to qualify the Measure for the ballot. On May 19, 2014, the City Clerk's office, with the assistance of the Los Angeles County Registrar /Recorder's office, verified that the petition contained 770 valid signatures, qualifying the Measure for the ballot. On June 3, 2014, the City Council received, filed, and accepted the Certificate of Sufficiency of Initiative Petition from the Chief Deputy City Clerk /Records Manager for the Measure. Under the Elections Code, the City Council was presented with the following options: 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; 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 consolidated with the upcoming Statewide general election on November 4, 2014; e. Direct staff to prepare a report, within 30 days, analyzing the impact of the Measure on the City's finances and ability to provide public services. The City Council opted for the final option and directed staff to return with the report at the July 1, 2014, City Council Meeting. UUT Repeal Impact Analysis July 1, 2014 Page 4 of 11 DISCUSSION In the City of Arcadia's adopted Fiscal Year 2014 -15 budget, $6.7 million in UUT revenues are anticipated, which represents approximately 13% of the City's overall General Fund revenues, excluding transfers in from other City funds. UUTs are the third largest revenue source for the City, after property taxes (22 %) and sales taxes (20 %). General Fund Revenue by Source FY 2014 -15 License & Permits 12% UUTs 13% Revenue Other I Transient Taxe s 11% 6�% J Charge Current Services Agency Property Taxes 22°% _5% User Money & Property 3% Franchise Taxes 2°% Recreation property 2°% Transfer Taxes 1% Fines & Penalties \ 1% \—Public Safety Augmentation Fund 1% \-Other Revenue 1% Library 0% If the UUT were eliminated, there would be significant impacts on the City's ability to provide services and programs at the levels currently experienced by residents and businesses. While in previous years it may have been possible to cut spending without impacting service levels, many of those alternatives are not available at this time. In order to balance the City's budget during the recent global economic crisis, extra positions were removed from the organization, comprehensive pension reforms were implemented, vendor contracts were renegotiated, and supplies and services, overtime, and training budgets were reduced to bare minimums. In addition, in short -term UUT Repeal Impact Analysis July 1, 2014 Page 5 of 11 financial struggles, cities can extend maintenance cycles or defer purchases to future years — something done in the past five years. The Measure, if approved, would be permanent. Therefore, only permanent spending reductions can be contemplated. The following sections provide an overall summary of potential impacts if the Measure were approved. The first scenario looks at an across - the -board 13% reduction for each department. The second scenario looks at what a more prioritized list of cuts would require. It should be noted in both instances that this is a very preliminary analysis of potential cuts to respond to a permanent and immediate 13% loss in revenues. Actual service cuts would require far more planning and coordination with the community, City Council, labor associations, and City contractors to determine the best path forward. However, the overall impacts would be very similar in magnitude. Scenario One: Reduce Every Department By 13% A 13% loss in revenue for each department would require impacts to service levels throughout the City. Public safety would be reduced dramatically, social and recreational programs would be cut, the potential for claims against the City would rise, and the community would be far less aesthetically pleasing. Municipalities are service - based organizations, meaning that most of the operating costs are personnel - related. As such, the high quality customer service level to which Arcadians are accustomed will be hampered in every interaction with City Hall, from a longer line to pay a water bill to a significantly slower turnaround for a plan check to the time it takes for police and fire to arrive at a 9 -1 -1 call. Undoubtedly, the quality of life for Arcadia residents would be adversely affected. Crime rates would likely rise, potholes would be more common, senior services and youth programming would be limited, access to the library and museum would be reduced, and property losses due to fire would be greater and possibly more frequent. The following table summarizes impacts based on an across - the -board 13% reduction for each department's General Fund activities. It is worth noting that the table only highlights selected items on the budget reduction list. For a complete picture of all the public services and programs that would be affected should the Measure be adopted, please refer to the individual City department's budget reduction lists attached as Appendix A to this report. t the Cas ni 13 sworn officers eliminated; 6 civilian positions eliminated; less police patrol; potential for increased crime; slower response time; elimination of crime prevention, Neighborhood Watch, and other community outreach efforts Positions Affectedt 28 UUT Repeal Impact Analysis July 1, 2014 Page 6 of 11 Fire Elimination of a fire station; significantly slower response times for fire, emergency medical services, and other emergency calls, especially in the northern portion of the City; potential for loss of life and property Development Potential for increased blight, property violations, and Services illegal businesses in the City; substantial delays for new construction inspections, plan checks, project approvals, and design reviews Public Works Reduced street sweeping from weekly to every other Services week; less City trees trimmed; less preventative maintenance on sidewalks and roadways; potential for increased public safety concerns such as fallen tree limbs and trip and fall hazards Library & City Library hours reduced by 1/3 (equal to 2 days); Museum Museum closed every Tuesday; longer wait times; Services fewer materials; fewer programs for residents and patrons Administrative Services Recreation and Community Services Delays in customer service and prolonged wait time at the cashier; significant impacts to internal services Elimination of school -aged children programs such as elementary playground programs, middle school intramural leagues, and all City track meets; significant reduction in senior citizen services and programs; elimination of family special events such as Concerts & Movies in the Park, Snow Fest, Community Bike Ride, Halloween Happenings, and Easter Egg Hunt City Manager Elimination of Arcadia Beautiful and Holiday Decoration Awards, Mayor's Community Breakfast, and City Newsletter; slower response time to residents and City officials General City & Reduced graffiti control around the City; reduced Special communication with residents; elimination of Senior Programs Citizens Commission; elimination of all activities relating to promoting employee morale Total City Employee Positions Affected: N11 E 11 KI a,I 94 UUT Repeal Impact Analysis July 1, 2014 Page 7 of 11 t Includes layoffs, demotions, reclassifications, reduction in hours, etc. Impact to City Personnel In 2014 -15, employee costs account for 74% of the City's General Fund expenditures. To achieve a 13% cut in the City's operating budget, 94 City positions would be impacted in the form of layoffs, demotions, changes in work status from full -time to part - time, and reduced work hours for hourly workers. All of these changes will directly affect employees, many of whom have committed their entire careers to this community. For example, in order to reduce the Police Department's budget by 13 %, which equates to over $2.46 million, its personnel budget would be cut by 24 %. A total of 28 positions would be removed from the Police Department, which includes 19 full -time positions (13 sworn and 6 civilian) and nine part -time positions from the Police Cadet Training Program. Of the individuals affected, five of the sworn Police Officers are married; four have young children. Several civilian staff members have grandchildren; some have been with the Department for over 15 years. One of the recruits from the Police Cadet Training Program is married, has a small child, and caught the attention of staff by demonstrating hard work and a diligent work ethic as a Cadet while balancing multiple part -time jobs. Overall, the skills, abilities, and dedication demonstrated by this group of employees indicate that many of them would advance and become future leaders of the Department. Instead, they would be let go. The personnel impacts felt in the Police Department are but one example of the upheaval that would be experienced for the employees that would be lost throughout the organization. It should also be noted that there would be significant impacts on those employees remaining as workloads would increase over levels already stretched thin due to cuts endured since the last recession. Employee turnover would likely increase and overall morale would decrease. Scenario Two: Prioritized Reductions Another approach to reduce the City's expenditures by 13 %, or $6.7 million, is to prioritize reductions based on overall community values. Certain departments, programs, and positions would be given higher prioritization than others, meaning some departments would experience impacts greater than others. Regardless of what option is chosen, it is a certainty that losing $6.7 million in UUT revenues would translate into a significantly reduced level of customer service and public programs, job loss for dozens of dedicated City employees, and, most importantly, an overall decreased quality of life for residents of the City of Arcadia. UUT Repeal Impact Analysis July 1, 2014 Page 8 of 11 With the 30 -day timeframe available, the outreach needed to accurately ascertain precise community values for prioritization is impossible. Based on what is generally accepted as the community's highest priorities — public safety — and the fact that several functions are legally mandated (City Clerk, Treasurer, and Building Official, for instance), it is possible to illustrate just how significant the impacts would be on those departments that fall outside of this group. The graph below identifies the General Fund expenditures by department for FY 2014 -15. Police 35% General Fund Expenditure by Department FY 2014 -15 Public Works Fire Services poi 6% pment ices :. & Comm. Services 6% )ry & Museum Services 6% City Mgr /Council/ Atty /Clerk 3% ty Suppose that the community wished to achieve a 13% cut that would avoid any impacts to police and fire and still maintain all legally required functions. To use an extreme example, eliminating the entire Recreation & Community Services Department and the entire Library & Museum Services Department would achieve a $6.4 million General Fund savings, a figure somewhat close to the required $6.7 million that meets the stated minimum community values. The Library and Museum host over 560,000 patrons each year, providing free and equal access to materials for all ages that support the reading interests of a diverse community (including services for the homebound and those with special needs); offering group and individual literacy programs for all ages, such as conversational UUT Repeal Impact Analysis July 1, 2014 Page 9 of 11 English classes for residents with limited English; hosting quality story times and educational programming that develop childhood literacy; serving as a community gathering space for educational, informational, historical, and cultural programs; and building and preserving Arcadia historical documents and artifacts. The Recreation and Community Services Department helps create a healthy community through diverse and innovative programming. While the community is home to less than 56,500 residents, there are over 833,000 individual visits each year to the Community Center, Dana Gym, five City parks, and 11 Arcadia Unified School District facilities where Recreation activities take place. On the aggregate, there are: 125,000 uses of youth programs including drop -in playgrounds, day camps, and after school programs; 29,000 adult uses of recreation classes such as yoga, golf, and photography; 127,000 senior citizen uses of programs such as low -cost lunches (the only hot meal of the day for some seniors), seminars, and the health EXPO; and 14,900 participants for City- sponsored special events, such as Concerts in the park, Snow Fest, and Community Bike Ride. If the Library, Museum and all Recreation opportunities were eliminated, 111 full- and part -time employees would be laid off. The Library, Museum, Museum Education Center, Community Center, Wilderness Park Nature Center, and 14 City Parks would be closed permanently, and the community would no longer have guaranteed access to fields and facilities at local school sites after hours. While the programs, services, and facilities provided by these two departments are not legally mandated, they contribute to the overall quality of life in the community and help to enhance public safety in a variety of ways. To name a few examples, exercise classes increase wellness of seniors, thereby decreasing the need for emergency medical responses. Occupying young minds after school hours helps deter graffiti and other minor crimes that often lead to more serious violations if left unchecked. Library, Museum, and Recreation programs also supplement the City's highly- regarded school system, which has a direct impact on property values in the community. The activities and programs provided by these departments affect the greatest number of people on a daily basis, yet are among the least expensive services the City offers. As a result, the elimination of these important programs would not achieve $6.7 million in savings. An additional $312,800 would still need to be cut from other departments or services in order to completely offset the loss of the UUT. Additional Revenue Considerations In the example above, the entire Recreation & Community Services Department would be eliminated. If this were to occur, the more than $1 million in revenue generated from their activities would also be lost, meaning that additional cuts would be necessary beyond the $6.7 million lost through the UUT. UUT Repeal Impact Analysis July 1, 2014 Page 10 of 11 Similar impacts would occur based on various options that are selected. For instance, the entire Development Services Department expenditure budget is $4,566,400. However, the revenue generated from the Department for services provided, such as plan checks and building permits, totals over $4,228,000 — a 93% cost recovery that would be lost if the services were eliminated. While Development Services and Recreation & Community Services have the largest cost recovery percentages, most functions in the City have some associated revenue. Any program or service cuts would need to be cognizant of the potential additional revenue losses that could occur. The same would be true for grants and other non - General Fund revenues that could be impacted. Legal Analysis The City Attorney has reviewed the proposed Measure and has identified several provisions that may be unconstitutional or unlawful. The City Attorney will provide a verbal report at the City Council meeting outlining these matters. Options for Calling an Election It would not be recommended for the City Council to adopt the Measure as submitted. As shown above, it would have a drastic impact on City services and the quality of life in the community. More importantly, the UUT was ratified by the voters in 1996 and again in 2009 in accordance with Proposition 218; any future modification to the tax should also be made by the voters. Calling a standalone Special Election would cost the City approximately $90,000 using the less expensive all -mail ballot method. If a traditional election were held in which voters vote at polling places, it would cost closer to $106,000. Consolidating an election with the statewide election in November 2014 would cost approximately $300,000 based on estimates provided by the City's election consultant and recent experiences from other nearby communities. Putting the measure on the City's next general election would not provide significant additional expenses. It would be on the order of $5,000 for additional printing and translation services, making it the least expensive alternative. Election cost considerations aside, the community would benefit from the opportunity to be fully educated on the matter before being asked to vote on whether to repeal the UUT. Therefore, it would be recommended that the City Council choose a general City election for the initiative Measure. UUT Repeal Impact Analysis July 1, 2014 Page 11 of 11 The City Council could call a standalone special election or place the Measure on a general City election at a subsequent meeting. However, if the City Council wishes to submit the Measure to the voters as part of the upcoming Statewide general election on November 4, 2014, the following resolutions, which are attached to this staff report, will need to be adopted at this meeting in order to meet state election protocols: • Resolution No. 7037 calling and giving notice of the holding of a Special Municipal election on Tuesday, November 4, 2014, for the submission of a proposed ordinance repealing the Utility Users Tax in its entirety. • Resolution No. 7038 requesting the Board of Supervisors of the County of Los Angeles to provide election services and to consolidate a Special Municipal election to be held on Tuesday, November 4, 2014, with the Statewide General Election to be held on that date pursuant to Section 10403 of the Elections Code. • Resolution No. 7039 setting priorities for filing written arguments regarding a City measure and directing the City Attorney to prepare an impartial analysis. • Resolution No. 7040 providing for the filing of rebuttal arguments for City measures submitted at Municipal Elections. FISCAL IMPACT If approved by the voters, the UUT repeal initiative measure would have a $6.7 million impact annually to the City's General Fund, which is approximately 13% of the City's overall operating revenue. To offset the loss, the City would have to reduce services and programs significantly to maintain a structurally balanced budget. RECOMMENDATION It is recommended that the City Council receive and file this report and provide direction on placing the UUT repeal initiative measure on the ballot. APPENDIX A DEPARTMENTAL DETAIL OF POTENTIAL UUT REPEAL IMPACTS The following pages specifically identify the potential reductions that would occur if each department experienced a 13% reduction in its General Fund Budget. The departments are organized according to their total General Fund expenditures in descending order. Each City department presents a budget reduction list along with the corresponding service and personnel impacts. While every effort has been made to cut each department by exactly 13 %, there is some variation based on the cost of actual positions and programs being modified or eliminated. Some departments show slightly more than the 13% while others show slightly less; however, the total impacts shown for all departments total roughly $6,700,000 — the value of the Utility Users Tax. Specifically, there are $6,702,928 in cuts shown. Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 2 of 17 Department: Police FY 2014 -15 Approved Operating Budget: $18,929,000 Synopsis: The Police Department would have to cut a total of 28 positions, including 13 sworn Police Officers, three Community Services Officers, three Records Technicians, and nine Cadets from the Police Cadet Training Program. Externally, this would have a profoundly adverse impact on the overall safety and welfare of the community by reducing police patrols, longer police response times, and less community outreach and education. Internally, this proposal would severely damage employee morale and affect the health and succession planning of the organization in the long run. ' Item Description -IN Savings Impact 1 Eliminate 13 $1,747,346 . LESS POLICE PATROL: Less patrol through neighborhoods; Police Officers potential for increased crime; more opportunities for crime to go unnoticed; increased perception of lack of safety within community; prolonged response time • REASSIGN DETECTIVES TO PATROL OPERATIONS: fewer solved crimes and convictions of felons, which could lead to increased crime 2 Eliminate 3 $252,249 . LACK OF SUPPORT STAFF: Eliminate key support staff in Community Investigations, Community Affairs, and Personnel & Training; Services Officers eliminate assistance with court document processing and subpoena control; no court liaison; eliminate crime prevention and community outreach efforts; eliminate Coffee - With -A -Cop and Neighborhood Watch Program; and eliminate assistance with police human resources including recruitment and professional development 3 Eliminate 3 $189,162 . LESS CUSTOMER SERVICE: Eliminate key support staff in the Records areas of records requests and report processing; reduced hours Technicians of operation; longer wait times; inability to maintain current customer service level; and increased perception of poor customer service 4 Eliminate Police $130,779 . NO EARLY LAW ENFORCEMENT TRAINING AND LACK OF Cadet Training SUPPORT STAFF: Omit career opportunities within agency; lack Program of administrative support by 4 currently employed Cadets; forgo support of 5 Cadets that are in the process of being filled, limited fingerprinting services; and longer wait times at service counter 5 Eliminate $9,000 . LESS COMMUNITY OUTREACH: No staff to conduct Neighborhood community affairs related activities, projects, and events; no Watch Program neighborhood watch training sessions and meetings; no business safety awareness trainings; no home safety inspections; and no residential burglary follow -up; reduction or elimination of the "See Something, Say Something" campaign 6 Reduce Racetrack $21,853 . LESS PATROL: Less patrol operations at Race Track; less Control Overtime traffic control; increased perception of lack of safety; increased risk of criminal activity and public intoxication; and prolonged response times. Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 3 of 17 7 Reduce Patrol Overtime Motal Props $53,495 . LESS PATROL AND DIRECTED ENFORCEMENT: less police officer presence; increased perception of lack of safety; and prolonged response times. Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 4 of 17 Department: Fire FY 2014 -15 Approved Operating Budget: $13,710,500 Synopsis: The Deputy Fire Chief position would be eliminated and one of the three fire stations in the City, Fire Station 107, located at 79 W. Orange Grove Blvd., would be closed. Paramedic Assessment Engine 107, housed at Station 107, provides fire, medical, and other emergency incident coverage to residents who live in the northern portion of Arcadia (north of Colorado). If Fire Station 107 and Engine 107 were eliminated, when north Arcadia residents call 9 -1 -1 for a fire or medical emergency, there would be a significantly longer response time as fire resources would have to respond from the other two fire stations, which are located farther away. Finally, the two reduction items below would result in a total of 10 layoffs and 10 demotions in a department with only 58 personnel, creating a devastating impact on the Fire Department's operations, succession planning, and employee morale. description 1 Shut down $1,595,075 • LONGER FIRE & EMS RESPONSE TIME FOR NORTHERN Fire Station 107 PART OF CITY (NORTH OF COLORADO): Significant increase in response time for fire, emergency medical services (EMS), and other emergency incidents for the northern portion of the City; units would respond from Fire Stations 105 and 106, which are located in the more southern parts of the City; eliminate Paramedic Assessment Engine 107 as a first responder unit, which provides fire and EMS coverage for residents living in north Arcadia • 9 LAYOFFS PLUS 6 DEMOTIONS: Eliminate a total of 9 positions including 3 Fire Captains, 3 Fire Engineers, and 3 Fire Paramedics; will create a domino effect on the rest of the Department and resulting in 6 additional demotions among all ranks 2 Eliminate Deputy $271,855 • REDUCED OVERALL DEPARTMENT OPERATIONS: Loss of Fire Chief Position the only position on the Fire Department's administrative staff who has fire and emergency operational capacity besides the Fire Chief; will severely impact fire and EMS operations, staffing, personnel matters, grant management, budget preparation, fire communications, and other operational duties; Fire Chief will have to take a more hands -on role operationally, reducing capacity to maintain a global perspective of the Fire Department and the City; Deputy Fire Chief's areas of responsibility will have to be partially absorbed by other command staff members, leading to extra overtime, fatigue, and burnout; impact Fire Department's succession planning • 1 LAYOFF PLUS 4 DEMOTIONS: Eliminate 1 position, creating a domino effect on the rest of the Department and resulting in 4 additional demotions Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 5 of 17 Department: FY 2014 -15 Approved Operating Budget Development Services $4,566,400 Synopsis: Four positions would be eliminated (Economic Development Manager, Code Services Officer, Building Inspector, Planner), and the City would no longer provide funding for the Arcadia Chamber of Commerce. The Chamber of Commerce may no longer be viable; any efforts to recruit, promote, and support new businesses in the City will cease. There would be substantial customer service delays in planning and building - related activities, and the ability to preserve the City's overall appearance and quality of life will be hindered. Item Description Savings 1 Eliminate funding $72,000 . Chamber of Commerce would lose major operating revenue and for the Arcadia may no longer be viable. Chamber of Commerce Chamber of Commerce would likely lose staffing and would likely need to stop programs designed to assist the business community in Arcadia. This would directly lead to the reduction and possible elimination of the promotion of Arcadia businesses. 2 Eliminate Economic $223,400 . Eliminate programs and staffing services for business assistance, Development support for new businesses, and business promotional efforts. This Program would greatly impact customer service and create a very difficult climate for businesses. This action would eliminate funding for special events and citywide promotional efforts, including Breeders' Cup, holiday markets, and similar events. It would also eliminate marketing efforts and all funding for "Shop Arcadia" program, holiday decorations in Downtown Arcadia, and beautification efforts for business areas in Arcadia. It would also discontinue assistance to the Downtown Arcadia Business Association. Eliminate Code $80,341 . A position would be eliminated from the Code Services Division. Services Officer Code enforcement is a critical component of the Department's position function in preserving the safety, appearance, and quality of life in the City. The loss of this position will remove the possibility of Code staff being proactive in dealing with Municipal Code violations. The Code staff will be forced to simply react to complaints rather than getting out in front of issues and violations. This will be especially true in commercial areas, where property violations, illegal businesses, and visual blight will result from a lack of attention. In residential areas, problems like property maintenance, landscaping problems, and neighbor disputes will proliferate. 4 Eliminate Building $93,375 . A position would be eliminated from the Building Division. The Inspector position accelerated pace of development in the City requires this staffing level to inspect new construction and ensure its safety and viability. The loss of this position would slow down the processing of projects and inspections. It would also elongate the time of Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 6 of 17 construction projects which disrupt neighborhoods and City streets. With the fast current pace of construction, this could greatly impact those neighborhoods where a number of projects are in process at any one time. 88,922 • A Planning position would be eliminated. Planners are responsible for design review, processing planning cases, assisting residents with projects, and general customer service. Amount: • The loss of this position would significantly elongate processing times and remove the Department's ability to react to customer questions and requests. Service levels would drop off considerably. Planners are also responsible for plan checking, site inspections, and final building approvals for specific projects. Similar to the loss of the Building Inspector position, the loss of a Planning position would elongate the time of construction projects, which will disrupt neighborhoods and City streets for longer periods of time. Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 7 of 17 Department: FY 2014 -15 Approved Operating Budget Public Works Services $3,783,700 Synopsis: Three positions would be eliminated and several services that are essential to the community would be significantly impacted. City trees would be trimmed less frequently, resulting in a potential increase in injuries, accidents, and claims from fallen limbs. City streets, currently swept once a week, would be swept every other week, compromising the cleanliness of the City. Uneven sidewalks would not be grinded, leading to more trip and fall hazards and City claims. Item Description Impact Cut Contract for $120,400 • 3,800 trees will not be trimmed properly. Tree Trimming in Half • INCREASES CLAIMS FROM FALLEN LIMBS: increases City's liability due to fallen limbs and trees; damage to private property and potential personal injury RISKS PUBLIC SAFETYRESPONSE FROM INADEQUATE TREE TRIMMING MAINTENANCE: Limits access to emergency vehicles (fire and police) and larger vehicles (e.g. delivery vans and motor homes) in reaching their designated site or property; restricts postal /mailing services due to low limbs near mailboxes; impedes driver visibility while backing from driveways due to low limbs. • EMERGENCY DISASTER IMPACTS: Longer response time and more costly as service was not bid -out and therefore, immediate assistance unavailable. • COMPROMISES AESTHETICS AND ENVIRONMENTAL REGULATIONS: Reduced care and maintenance of trees resulting to further tree deterioration; fallen limbs causing more streets debris and clogged storm drains, which could violate TMDL compliance, with fines up to $37,000 per day. • REDUCES SERVICE LEVEL: Delays response time from Streets Crew on routine daily maintenance tasks due to handling of additional work and problems associated with decreased tree maintenance. • INCREASES OVERTIME COSTS: Streets Crew may need to be called for more overtime hours otherwise handled by contractors, while keeping up with their current work load and ongoing customer requests. Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 8 of 17 Reduce Street $161,632 . COMPROMISES CLEANLINESS, AESTHETICS, AND Sweeping from ENVIRONMENTAL REGULATIONS: Eliminates one (1) Weekly to Bi- Equipment Operator position and one (1) Street Sweeper Weekly Service vehicle. Accumulates more trash, debris, and pollutants in the streets and storm drain system; compromises the City's environmental stewardship; unsightly and dirty streets prevent customers and visitors from doing business with the City. Weekly street sweeping helps the City with its trash TMDL compliance, as violations for noncompliance can be up to $37,000 per day. • RISKS PUBLIC SAFETY: Increases standing water which promotes mosquito breeding and algae growth, resulting in the spread of West Nile Virus; also results to excess standing water backing up in driveways. Cut Sidewalk $66,476 • INCREASES CITY CLAIMS: Eliminates one (1) Maintenance Grinding Program Worker position; eliminates one (1) pick -up truck and one (1) in Half grinder; increases City's liability due to trip and fall claims from uneven sidewalks; More costly to remove and replace lifted sidewalk versus grinding. • COMPROMISES AESTHETICS AND PUBLIC SAFETY: Grinding sidewalks levels the ground. The next option would be laying asphalt, which creates uneven walking paths that could potentially create a trip and fall hazard. $348,508 Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 9 of 17 Department: FY 2014 -15 Approved Operating Budget Library and Museum Services $3,392,400 Synopsis: The Department can cut 13% of its budget by reducing the hours of operations for the City Library by one - third; closing the Museum every Tuesday; drastically reducing the budget for procuring materials; reducing the Library and Museum programming for all ages; and eliminating nine staff positions as well as reducing the hours of two additional employees. The impact will be felt by patrons in the forms of longer wait lines, fewer materials for all ages, and increased customer dissatisfaction. description RSavingsiV Impact 0 1 Close Library for 20 $308,000 • REDUCE SERVICE HOURS AT LIBRARY: reduce Library service hours per week hours from 60 hrs /wk to 40 hrs /wk, resulting in disruption of service to Library patrons of all ages. This equates to approximately 2 full days of closures • ELIMINATE 9 LIBRARY STAFF POSITIONS: eliminate 1 FT position, 4 PT positions, and 4 hourly positions, resulting in longer wait times at public desks for assistance; public access to technology help reduced; programming and services reduced at all levels and for all age groups; potential closure of public desks; elimination of interlibrary loan services; materials would take longer to reach shelves; loss of cataloging and processing support for new materials would require many of these operations to be largely outsourced; as a result, standards for cataloging and processing would have to be lowered; off -desk activities would take longer, likely resulting in increased customer dissatisfaction; library material more difficult to locate; eliminate Teen Zone on most days, resulting in loss of space for high school students to study and work on group projects; reduced support for community projects and activities; lower staff morale • REDUCED CUSTOMER SERVICE AND ASSISTANCE: loss of staff would lead to reduced service on all levels and for all age groups 2 Close Museum $40,402 • REDUCE MUSEUM HOURS, REDUCE STAFF HOURS: Reduce every Tuesday FT Curator to .75; reduce .75 Education Coordinator to .5, resulting in fewer school and scout visits; fewer educational programs; fewer exhibits; reduced access to Arcadia historical information and resources; less ability to use new Museum Education Center 3 Reduce Library and $40,692 • LONGER WAIT TIMES FOR MATERIALS: Best sellers, popular Museum Materials fiction, AV, eBooks, and timely information materials would be less and supplies available and have longer wait times, resulting in more complaints and customer dissatisfaction • FEWER MATERIALS FOR ALL AGES: fewer materials for all age groups; less availability of information from home 24/7 due to loss of eResources; fewer magazines and newspapers; reduced Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 10 of 17 curriculum support materials for school age children; reduced ability to support the Library's mission to support educational, and recreational reading needs and interests of the community • FEWER SUPPLIES FOR SUPPORT SERVICES: availability of processing, office, and professional supplies reduced, resulting in compromised quality and /or elimination of services; preservation of historical materials compromised 4 Reduce Library & $3,600 • FEWER PROGRAMS FOR ALL AGES: weekly and monthly Museum storytimes reduced; elimination of class visits for preschool and Programming for all school age children; eliminate English Conversation Class, book Ages discussion groups, computer classes and special programming for adults; teen and middle school programming reduced; reduced scout programming, school tours and historical programs at Museum Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 11 of 17 Department: Administrative Services FY 2014 -15 Approved Operating Budget: $3,356,700 Synopsis: Three positions would be affected (Accounting Technician, Office Assistant, Human Resources Analyst), and several professional services contracts would be cut. Customer service will suffer, and the City would risk having inaccurate accounting and budgeting data. I Descriptio Mkg lmqw FINANCIAL SERVICES AND TREASURY: 1 Eliminate 1.5 $98,000 . CUSTOMER SERVICES STANDARDS THAT PATRONS ARE Accounting ACCUSTOMED TO FOR PARKING CITATION WILL BE Technicians by AFFECTED: All inquiries and payments will be directed to the outsourcing Parking vendor as ASD would retain only general citation data. Expected Citation function; increase of irate and frustrated individuals as their citation issues and changing the cannot be addressed at hand. cost allocation method for internal . INTERNAL SERVICE COST ALLOCATION WOULD NOT service billing REFLECT THE TRUE COST OF OPERATIONS: This position is tasked to accumulate data for various citywide general uses and inventories by departments such as: fuel, warehouse, phone, utility, postage, and garage services related expenses. The elimination of this position would demand that a new method be used to simplify the allocation for calculating those charges based on estimated and proration basis. As this would be based on estimates, the measure would not reflect the true costs. As such, the City may be at risk with grant funds, as there could be audit findings for various grants that require all allocated costs to be based on "actuals" calculations. 2 Eliminate $41,000 . LOWER INVESTMENT EARNINGS ON THE CITY'S Investment INVESTMENT PORTFOLIO: City Treasurer does not have similar Advisory Services resources as the investment consultant for methodical analysis and research on instruments with which the City may invest funds 3 Eliminate temporary $12,200 . LESS CUSTOMER SERVICES AT THE CASHIER: Delays and help budget for the longer waiting time for customers, especially during Cashier and December /January when most of the annual parking permits are Financial Services renewed. Current staffing level is inadequate to provide extended coverage when someone is out for extended leaves. 4 Eliminate costs for $5,000 . RISK OF HAVING INACCURATE PROPERTY TAX BUDGET: Property Tax HDL provides resources on property tax related data, and assists in Estimate -HDL making property tax revenue projections. HUMAN RESOURCES: 5 Eliminate Pant -time $22,000 . REDUCED HUMAN RESOURCES FUNCTIONS: the Human Office Assistant Resources Division will no longer be able to provide counter position services to other departmental staff or the public; reduced clerical support; and longer application processing times. Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 12 of 17 6 Reclassify the Full- $44,620 . REDUCED HUMAN RESOURCES SERVICES: Reduced time Human recruitment and retention efforts, including Fire and Police Resources Analyst personnel; also will reduce administrative and clerical support to Permanent Part- relating to the self - insured Workers' Compensation program of the Time (50 %). No City. benefit changes. 001 -1810 currently budgeted .80, would change to .55. 7 Eliminate $15,000 . ELIMINATE NEW ERGONOMIC PROGRAM: results in Ergonomic continued high claims related to repetitive use injuries Equipment Program 8 Eliminate Wellness $20,000 . ELIMINATE NEW WELLNESS PROGRAM: results in Program continued risk of employees of death and serious preventable diseases; continued high cost of injuries and workers compensation claims. INFORMATION TECHNOLOGY: 9 Cut to maintenance $11,600 . These funds provides for unanticipated technical support for and supplies software /hardware, data & fiber, and cable issues that arise budgets at irregular intervals. • Reduced budget for replacement of miscellaneous software /hardware units that breakdown during the year as oppose to replacing the full component. 10 Reduction of $52,000 . DECREASED EMPLOYEE PRODUCTIVITY: : This cut to Information I.T. is approximately 17% of the contract, resulting in longer Technology downtime when there are issues with the City's computer Consultant Service issues and affecting staff's productivity Contract WProposed Budget Reduction A $ 321,420 Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 13 of 17 Department: FY 2014 -15 Approved Operating Budget Recreation and Community Services $2,994,800 Synopsis: The Recreation and Community Services Department would have to cut 24 programs and close Wilderness Park for 26 hours per week for half of the year. Consequently, close to 57,000 citizens who benefit from or participate in these programs would be impacted, approximately 19,000 work hours would be cut from hourly Recreation Leaders and Specialists, and two positions (Recreation Coordinator and Senior Citizen Project Specialist) would be eliminated. With the loss of programs, there would be an estimated revenue loss of $47,840. em Description Savings Impact 1 Elementary School $107,200 . This program serves 32,875 elementary school aged children Year Playground throughout the school year. The program operates Monday - Program Friday from 2:30- 4:30pm at Hugo Reid, Baldwin Stocker, Highland Oaks, Holly Avenue, Camino Grove, and Longley Way Elementary Schools • Recreation Specialist -1,048 Less Hours • 8 Leader 11's -456 Less Hours Each • 12 Leader I's -576 Less Hours Each • $8,400 Loss in revenue 2 Elementary Summer $36,500 . This program serves 4,300 elementary school aged children over Playground the summer. The program operates Monday - Friday from 9:30am Program - 3:30pm at Highland Oaks and Baldwin Stocker Elementary Schools • Recreation Specialist -360 Less Hours • 2 Leader 11's -310 Less Hours Each • 4 Leader I's -310 Less Hours Each • $3,240 Loss in revenue 3 Great Egg Race $2,600 . 250 Teens participate in a flashlight egg hunt at the Par 3 Golf (Teen Flashlight Course Egg Hunt) . 18 Leader 1's -7 Less Hours Each 4 Halloween $3,500 . 600 Children participate in a Halloween Carnival games and Happenings activities • 2 Recreation Specialist -6 Less Hours Each • 10 Leader 1's -6 Less Hours Each 5 Letters to Santa $1,220 . 100 Children get hand written letters from "Recreation Elves" • 2 Leader I's-40 Less Hours Each 6 Middle School $50,300 . 400 Middle School aged children participate in volleyball, Intramural Leagues basketball, football and cheerleading leagues at their schools and compete against other schools and teams from the San Gabriel Valley • Recreation Specialist -1072 Less Hours • 3 Leader 11's -126 Less Hours Each • 3 Leader I's -126 Less Hours Each • $15,200 Loss in revenue Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 14 of 17 7 Teen Library $8,300 . This program operates at the library Monday - Thursday from 2:30 - ReZone all Program 4:30pm during the school year. 2,810 children were served last year. • 1 Leader II -310 Less Hours • 1 Leader 1 -310 Less Hours • $900 Loss in revenue 8 Winter Snow $23,100 . Each year approximately 2,000 people gather to join in the holiday Festival spirit to participate in various activities including snow play areas, sled runs, holiday crafts, train rides and entertainment from Carole Singers, magicians and balloon artists • 2 Recreation Specialist -10 Less Hours Each • 20 Leader I's -10 Less Hours Each 9 Spring $3,310 . Each year hundreds of children gather at Arcadia County Park to Eggstravaganza participate in an egg hunt and visit from the Easter Bunny Egg Hunt . 2 Recreation Specialist -4 Less Hours Each • 10 Leader 11's -4 Less Hours Each 10 Teen Programs $5,700 . Teen nights are held at the Dana Gym each month for teens who attend middle school in Arcadia. This program gives teens the opportunity to mix and mingle with teens from other schools. 50 teens participate each month • 2 Leader 11's -66 Less Hours Each • 3 Leader I's -66 Less Hours Each • $1,300 Loss in revenue 11 Volunteen Program $4,100 . 250 Teens participate in job training in the Recreation Department. Each teen is interview and screened. Teens help out in special events, summer and school year programs to supervise younger children. This program also helps teens complete the volunteer requirement for school. Staff costs are absorbed in other programs 12 All City Track Meet $10,800 . 700 Elementary and Middle School aged children from Arcadia compete in various track and field events. Qualifiers from this meet go on to compete in the San Gabriel Valley Regional Track Meet and Southern California Meet • 20 Leader I's -20 Less Hours Each • 4 Leader 11's -14 Less Hours Each • $850 Loss in revenue 13 Movies in the Park $10,700 . This is a new program offered in partnership with CHOICESS. The program will run seven consecutive weeks over the summer. Attendance is expected at 600 people per event, 4,200 people total • 4 Leader 11's -42 Less Hours Each 14 Concerts in the Park $22,400 . This program is offered over the summer for seven consecutive weeks. Each concert averages approximately 850 people, serving 6,000 people over the summer • 6 Leader 11's -37 Less Hours Each • 2 Leader I's -37 Less Hours Each 15 Family & Adult $14,800 . This program provides trips to the Hollywood Bowl, Pageant of the Excursions Masters, and three hikes to locations around the Los Angeles area • Serves 300 people annually • 2 Leader 11's -50 Less Hours Each • $12,500 Loss in revenue 16 Community Bike $3,300 . This annual event is a leisurely bike ride through Arcadia that hosts Ride approximately 200 people each year Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 15 of 17 • 12 Leader 11's -8 Less Hours Each • 8 Leader 1's -8 Less Hours Each 17 Full Time $64,000 . Loss of the Dana Gym Coordinator position who supervises the Recreation Recreation Specialist positions, various special events, and Coordinator programs at the Dana Gym Position 18 Senior Health Fair $550 . This event brings a variety of health and wellness information to seniors at one event. • This event serves 200 senior citizens 19 Senior EXPO $1,300 . This EXPO brings many resources available for seniors together at one time • Serves 85 Senior Citizens • $400 Loss in revenue 20 Senior Day Camp $2,150 . This annual event serves 60 senior citizens. Each year a different theme is identified and seniors get out of the community center for the day and are transported up to Wilderness Park • $1,200 Loss in revenue 21 Senior 4 n of July $2,500 . 125 Senior citizens celebrate a patriotic themed event at the Event community center • $1,250 Loss in revenue 22 Senior Bingo and $4,200 . 250 Senior citizens participate in a catered lunch and a variety of Lunch bingo games at the community center. This program is offered two times a year 23 All That Swing $3,000 . 175 Senior citizens participate in an event geared towards music and dancing • $1,750 Loss in revenue 24 Veteran's Day $3,000 . This annual program honors Arcadia Veterans. This program Luncheon serves 200 people per year • Revenue Loss $850 25 Senior Volunteer $1,500 . This event honors the 125 Senior Citizens who volunteer in the Holiday Luncheon department 26 Senior Citizen $38,274 . This position is currently a part time benefited position working 20 Project Specialist hours per week. This cut would eliminate this position 100 %. This position supervises senior citizen special events and programs. 27 Wilderness Park $9,100 . Wilderness Park is open from May- September from 8:30 am -7 pm and from October through April from 8:30 am -4:30 pm. Weekends are used by reservations only • The park would be closed 26 weeks for 26 hours per week • Leader 11's -676 Less Hours roposed Budget Redu $437,40 Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 16 of 17 Department: FY 2014 -15 Approved Operating Budget City Manager (incl. City Attorney, City Clerk, and City Council) $1,786,000 Synopsis: Two positions would be eliminated (Deputy City Clerk, Executive Assistant to the City Council and City Manager). The daily operations of the City Clerk's Office and the City Manager's Office would be drastically impacted, resulting in delays, customer dissatisfaction, and loss of programs. Additionally, several meaningful programs would be cut, including the Mayor's Community Breakfast and the distribution of the City Newsletter. Item Description lWavings Impact 1 Eliminate Deputy $100,714 . Delays in responding to customer requests for records, meeting City Clerk position legal requirements, processing time sensitive records, processing ordinances and resolutions, the distribution of City Council meeting agendas, and processing public notices; calls may be forwarded to voicemail. 2 Eliminate one of two $100,716 . Duties of the eliminated position will be transferred to the remaining Executive Assistant Executive Assistant. positions • Elimination of the position will result in reduced support to the City Council, City Manager, and department staff; and no support for the Arcadia Beautiful and Holiday Decoration Award programs, the Mayor's Community Breakfast, and the Volunteer Recognition Program. • Responses to residents and City officials will be slower, and the turnaround time for completion of projects longer. 3 Eliminate $42,000 . The City Newsletter has proven to be the most effective way to publication of the reach Arcadia residents about general City programs and City Newsletter activities. While there are other ways to inform and educate the public, without the Newsletter the overall effectiveness of the communications program will be significantly reduced. 4 Eliminate the City's $5,000 . Without City involvement in this event in the form of financial and contribution to the staff support, this event will need to be organized and funded Mayor's Community entirely by a volunteer group in order to continue. Breakfast Departmental Detail of Potential UUT Repeal Impacts July 1, 2014 Page 17 of 17 Department: FY 2014 -15 Approved Operating Budget General City & Special Programs $1,346,200 Synopsis: Under this proposal, numerous programs that make Arcadia a first -class community would be eliminated, and the results would impact both Arcadia residents and City employees. Two of the City's commissions — Arcadia Beautiful Commission and Senior Citizens Commission — would be dissolved and their represented interests would cease. The Silver Circle Commissioners and Volunteers Recognition Program would be discontinued. Graffiti control efforts will be reduced. Several City employee perks and benefits, such as professional memberships and teambuilding event opportunities, would be affected. �m Description Commission Impact 1 Eliminate .35 $26,550 . There would be issues for timely delivery of mail to all city Accounting 7 Graffiti Control $12,000 . departments. Invoices, payments, and responses to external mail Technicians would be delayed and potentially create added cost as a result of position (the other )tal Proposed Budget Reduction Amount: delayed payment for invoices. .65 is allocated in This position also functions in accumulating and tracking data for Finance and listed various city -wide general uses and inventories by departments such as position to as: fuel, warehouse, phone, utility, postage, and garage services eliminate). related expenses for accounting purpose. _ 2 Membership and $31,070 . Discontinue memberships to the following associations: Publications: Independent Cities, San Gabriel Valley Council, League of California, League of California Cities, and Southern California Association of Governments. Without Arcadia as a member of these organizations, the City's interest would not be represented in regional planning and fiscal policy issues. 3 Employee Support $20,000 . Elimination of activities relating to promoting employee morale. l Some of these activities include: employee picnic, Halloween custom contest; employee holiday dinner. 4 Volunteer $28,000 . Elimination of the Volunteer Recognition Program Recognition Program 5 Arcadia Beautiful $5,000 . Dissolve the Beautiful Commission and their activities to encourage Commission beautification of homes and businesses city -wide. 6 Senior Citizens $3,000 . Dissolve the Senior Citizens Commission and their activities to Commission encourage and provide feedback on programs that are beneficial for the Seniors and the City. 7 Graffiti Control $12,000 . Reduction of the graffiti control budget may result in delayed response time to eliminate graffiti; potential increase in graffiti due to its extended visibility period, which may encourage "taggers" to propagate their activities )tal Proposed Budget Reduction Amount: $ 125,620 RESOLUTION NO. 7037 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA CALLING AND GIVING NOTICE OF THE HOLDING OF A SPECIAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 4, 2014, FOR THE SUBMISSION OF A PROPOSED ORDINANCE REPEALING THE UTILITY USERS TAX IN ITS ENTIRETY WHEREAS, pursuant to authority provided by statute petitions have been filed with the legislative body of the City of Arcadia, signed by at least five (5 %) percent of the number of registered voters of the City who voted for any gubernatorial candidate at the last election (November 2010) to submit a proposed ordinance amending the Arcadia Municipal Code repealing the Utility Users Tax in its entirety; and WHEREAS, the City Clerk's office with assistance from the Los Angeles County Registrar - Recorder /County Clerk examined the records of registration and ascertained that pursuant to California Proposition 218 (Calif. Const. Art. XIII, Section 3) the petitions are signed by the requisite number of voters, and has so certified; and WHEREAS, the City Council has not voted in favor of the adoption of the foregoing ordinance; and WHEREAS, the City Council is authorized and directed by statute to submit the proposed ordinance to the voters. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY, FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. Pursuant to the requirements of the Arcadia City Charter, there is called and ordered to be held in the City of Arcadia, California, on Tuesday, November 4, 2014, a Special Municipal Election for the purpose of submitting the following proposed ordinance: 1 Shall the City of Arcadia adopt a measure repealing the Utility Users Tax in its entirety, while YES also prohibiting the enactment or enforcement of any ordinance or rule requiring payment or collection of any tax, fee, charge or assessment, for the generation, sale or delivery of any utilities; and further providing that the measure may not be NO repealed except by a 213 vote of Arcadia voters? SECTION 2. The text of the ordinance submitted to the voters is attached hereto as Exhibit "A ". SECTION 3. Approval of this Ordinance shall require a majority vote of the total number of valid ballots cast and counted. SECTION 4. The ballots to be used at the election shall be in form and content as required by law. SECTION 5. The City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. SECTION 6. The polls shall be open at seven o'clock a.m. of the day of the election and shall remain open continuously from that time until eight o'clock p.m. of the same day when the polls shall be closed. SECTION 7. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 8. That notice of the time and place of holding the election is 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. 4 SECTION 9. The City Clerk shall certify to the adoption of this Resolution. Passed, approved, and adopted this day of , 2014. /AraM01f City Clerk APPROVED AS TO FORM: Stephen P. Deitsch City Attorney 3 Mayor of the City of Arcadia EXHIBIT "A" Ordinance Regarding Repeal of Utility Users Tax (ATTACHED) MEASURE" '70RDINANCE NO. AN ORDINANCE OF THE PEOPLE OF THE CITY OF ARCADIA REPEALING THE UTILITY USERS TAX IN ITS ENTIRETY AND PROHIBITING THE CITY FROM ENACTING OR ENFORCING TAXES, FEES, CHARGES OR ASSESSMENTS ON ANY UTILITY GOODS OR SERVICES. THE PEOPLE OF THE CITY OF ARCADIA, CALIFORNIA DO HEREBY ORDAIN AS FOLLOWS: Section 1. Findings and Declarations. WHEREAS, the people of the City of Arcadia find and declare that federal, state and local taxation has reached confiscatory levels; that unrestrained spending and regulation at all levels of government, are excessive, improvident, contrary to our rights as a free people and are thereby destructive of Life, Liberty and the pursuit of Happiness; and WHEREAS, it is the intent and purpose of this initiative that the current City of Arcadia utility taxes be repealed and that a new provision be added to the municipal code to provide that a person residing or doing business in the City of Arcadia shall not be legally held or obligated to pay, collect, or remit taxes, fees, charges or assessments, imposed or collected for the use, generation, sale, lease, purchase, supply, provision, transportation or delivery of any utility goods or services. Section 2. The following sections of the Arcadia Municipal Code are hereby repealed: Sections 2671, 2671.1, 2671.2, 2671.3, 2671.4, 2671.5, 2671.6, 2671.3 and 2671.7 Section 3. The Arcadia Municipal Code is hereby amended by adding a new Section 2679.2* to read as follows: "2679.2. The City of Arcadia, its City Council, agents and employees are hereby prohibited from enacting or enforcing any ordinance, rule or regulation which creates, imposes or causes a legal obligation for any person, business, organization, property owner or entity, regardless of place of residence, nationality or principal place of business, to pay, remit, or collect any tax, fee, charge or assessment, for the generation, sale, lease, purchase, supply, provision, use, transportation or delivery of any utility goods or services, to include, but not limited to, gas, telephone, telecommunication services, cable, water, video services, and electricity." * Originally identified as Section 2680 in the proponents' petition — renumbered by City Attorney's Office without substantive change for consistency with existing Municipal Code references. 2 Section 4. Name of Measure and Effective Date. This law shall be known as the Stop the Utility Users' Tax and shall become effective immediately upon approval by the voters of the City of Arcadia. Section 5. Severability. The provisions of this initiative are severable. If any provision of this measure or application thereof is held invalid, that invalidity shall not affect other provisions or applications if they can be given effect without the invalid provision or application. Section 6. Proponents of Measure Authorized to Defend. (a) Any provision of the Arcadia Municipal Code to the contrary notwithstanding, any person or persons described in Section 6(b) below are hereby authorized and deemed to have standing to defend this initiative where a court of competent jurisdiction shall determine, upon application of such person or persons, or any one or more of them, that (i) the validity of this initiative, its application or any provision thereof has become the subject of legal action, whether judicial or administrative or (ii) the City of Arcadia or other constitutional officer shall fail or refuses to defend this initiative in good faith. (b) Person or persons, as used in Section 5(a) shall include (i) any person or entity required to pay any sum described by this initiative, (ii) any proponent of this initiative; or (iii) any one or more of them. Section 7. Repeal of This Measure. This measure may not be repealed except by a vote of two - thirds (213) of the qualified voters casting ballots in the election in which the repeal of this measure is before the voters of the City. Section 8. Certification /Summary. Following the City Clerk's certification that the citizens of Arcadia have approved this Ordinance, the Mayor shall sign this Ordinance and the City Clerk shall cause the same to be entered in the book of original ordinances of said City; and shall cause the same, or a summary thereof, to be published as required by law. [SIGNATURES ON NEXT PAGE] 3 I hereby certify that the forgoing ordinance was PASSED, APPROVED and ADOPTED by the People of the City of Arcadia on the day of 2014. ATTEST: City Clerk APPROVED AS TO FORM: Stephen P. Deitsch City Attorney 4 Mayor of the City of Arcadia RESOLUTION NO. 7038 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES TO PROVIDE ELECTION SERVICES AND TO CONSOLIDATE A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2014 WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE WHEREAS, the City Council of the City of Arcadia called a Special Municipal Election to be held on Tuesday, November 4, 2014 for the purpose of submitting to the voters the question of repealing the Utility Users Tax in its entirety; and WHEREAS, it is desirable that the Special Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the city the precincts, and polling places be the same; and WHEREAS, it is desirable that the County canvass the returns of the Special 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 ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. Pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of Los Angeles is hereby requested to consent and agree to the consolidation of a Special Municipal Election with the Statewide General election on Tuesday, November 4, 2014. SECTION 2. That a measure is to appear on the ballot as follows: 1 Shall the City of Arcadia adopt a measure repealing the Utility Users Tax in its entirety, while YES also prohibiting the enactment or enforcement of any ordinance or rule requiring payment or collection of any tax, fee, charge or assessment, for the generation, sale or delivery of any utilities; NO and further providing that the measure may not be repealed except by a 213 vote of Arcadia voters? SECTION 3. The Board of Supervisors is requested to issue instructions to the Election Department of the County of Los Angeles to take any and all steps necessary for the holding of the consolidated election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. SECTION 4. The Election Department of the County of Los Angeles is authorized to canvass, or cause to be canvassed, the returns of the Special Municipal Election on said measure, and to certify such canvass to the City Council. SECTION 5. The City Clerk is hereby directed to file a certified copy of this Resolution with the Board of Supervisors and the county election department of the County of Los Angeles. SECTION 6. The City of Arcadia recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs. SECTION 7, The City Clerk shall certify to the adoption of this Resolution. [SIGNATURES ON NEXT PAGE] 2 Passed, approved and adopted this day of , 2014. ATTEST: City Clerk APPROVED AS TO FORM: 4 Stephen P. Deitsch City Attorney 3 Mayor of the City of Arcadia RESOLUTION NO. 7039 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING A CITY MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS WHEREAS, a Special Municipal Election is to be held in the City of Arcadia, California on Tuesday, November 4, 2014, at which there will be submitted to the voters the following measure: Shall the City of Arcadia adopt a measure repealing the Utility Users Tax in its entirety, while also prohibiting the Yes enactment or enforcement of any ordinance or rule requiring payment or collection of any tax, fee, charge or assessment, for the generation, sale or delivery of any utilities; and further providing that the measure may not be No repealed except by a 213 vote of Arcadia voters? NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. The persons who filed the petition may file a written argument in favor of the City Measure and the City Council, or any member(s) of the City Council so designated by the Council may file a written argument against the City 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 Tuesday, July 15, 2014, 5;00 p.m. The arguments shall be filed with the City Clerk, signed, with 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. The City Council directs the City Clerk to transmit a copy of the Measure to the City Attorney, unless the organization or salaries of the office of the City Attorney are affected. 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. If the Measure affects the organization or salaries of the office of the City Attorney, the City Clerk shall prepare the impartial analysis. The impartial analysis shall be filed with the City Clerk within ten (10) days following adoption of the Resolution calling the election. 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 of by the City Council. In the event the entire text of the Measure is not printed on the ballot, nor in the voter information portion of the sample ballot, there shall be printed immediately below the impartial analysis, in no less than 10 -font 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 election official's office at (insert phone number) and a copy will be mailed at no cost to you." 2 SECTION 3. The provisions of this Resolution shall apply only to the special election to be held on Tuesday, November 4, 2014 and shall then be repealed. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this day of , 2014. ATTEST: City Clerk APPROVED AS TO FORM: Stephen P. Deitsch City Attorney 3 Mayor of the City of Arcadia RESOLUTION NO. 7040 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS WHEREAS, Sections 9220 and 9285 of the Elections Code of the State of California authorizes the City Council, by majority vote, to adopt provisions to provide for the filing of rebuttal arguments for City measures submitted at municipal elections; F, 111TOl WHEREAS, a Special Municipal Election has been called for Tuesday, November 4, 2014 in the City of Arcadia at which a measure (the "Measure ") will be submitted to the voters pertaining to the City's Utility Users Tax Ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. Pursuant to Sections 9220 and 9285 of the Elections Code of the State of California, when the elections official has selected the arguments for and against the Measure which will be printed and distributed to the voters, the elections official shall send a copy of an argument in favor of the Measure to the authors of any argument against the Measure and a copy of an argument against the Measure to the authors of any argument in favor of the Measure immediately upon receiving the arguments. The author or a majority of the authors of an argument relating to a city Measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign a rebuttal argument. A rebuttal argument may not be signed by more than five individuals. The rebuttal arguments shall be filed with the City Clerk, signed, with 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. The deadline for submitting rebuttal arguments concerning the Measure is hereby declared by the City Clerk to be Monday, July 28, 2014, 5:30 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 2. The provisions of this Resolution shall apply only to the special election to be held on Tuesday, November 4, 2014 and shall then be repealed. SECTION 3. The City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this day of , 2014 ATTEST: City Clerk APPROVED AS TO FORM: 4�� () /44i4/n Stephen P. Deitsch City Attorney 2 Mayor of the City of Arcadia