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2018-19 RESOLUTION NO. 2018-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE PLACING A PARCEL TAX MEASURE BEFORE THE VOTERS OF THE CITY AT THE NOVEMBER 6, 2018 GENERAL MUNICIPAL ELECTION; REQUESTING THE ASSISTANCE OF THE COUNTY OF SAN BERNARDINO IN CONNECTION WITH THAT ELECTION AND CONSOLIDATING THAT ELECTION WITH THE STATEWIDE GENERAL ELECTION BEING HELD ON THAT DATE WHEREAS, the City of Grand Terrace has historically been among the safest areas in the County; WHEREAS, the City currently is patrolled by deputy sheriffs only 208 hours per week, and, as a result, the majority of the time, there is only one deputy sheriff on duty at any given time; WHEREAS, recent increases in crime are due, in part, to insufficient number of peace officers patrolling the city; WHEREAS, adding another deputy sheriff for 40 hours per week would ensure that there would often be two deputy sheriffs on duty at any given time; WHEREAS, the City cannot currently fund an additional 40 hours of sheriff deputy coverage per week; WHEREAS, if the electorate approved the proposed special tax, the City Council intends to use said funding to pay for deputy sheriff services for an additional 40 hours per week as long as supplemental funds remain available; WHEREAS, the City Council has called a General Municipal Election for Tuesday, November 6, 2018 (the "Election"); WHEREAS, the City Council desires to submit a parcel tax measure to be considered by the voters of the City at the Election and desires that the election on that measure be consolidated with the statewide general election to be held on that date; and WHEREAS, the proposed tax (the "Special Parcel Tax") is more completely described in the ordinance attached hereto as Exhibit "A" and incorporated herein by reference (the "Tax Ordinance"); and WHEREAS, this resolution was adopted following a public hearing that was noticed as required by Section 54956 of the Government Code and applicable law. 2018-19 CC Reso Page 1 of 8 May 22, 2018 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAND TERRACE AS FOLLOWS: Section 1. Recitals. The City Council hereby finds and determines that the foregoing recitals are correct. Section 2. Proposal. Pursuant to Section 50077 of the Government Code, the City Council hereby proposes the Special Parcel Tax. Section 3. Election. The City Council hereby orders, pursuant to Section 9222 of the Elections Code, that the Tax Ordinance be submitted to the voters at the Election. Section 4. Ballot Question. The question submitted by Section 3 of this Resolution shall appear on the ballot as follows: To enable the funding of law enforcement services beyond the current 208 deputy hours weekly, shall the City of Grand YES Terrace collect a parcel tax ending following tax year 2023- 2024, exclusively for law enforcement services, at the annual rate of$80.00 per single family dwelling, $45.60 per multifamily dwelling unit, and $100.00 for nonresidential parcels, NO estimated to initially generate $356,000 annually, with annual rate increases of up to 6% and citizen's oversight? Section 5. Approval. Pursuant to Section 4 of Article XIII A of the Constitution, this measure requires approval by a two-thirds vote of those casting ballots on the measure. Section 6. Consolidation. Pursuant Section 10400 et seq. of the Elections Code, the Board of Supervisors of San Bernardino County is requested to consolidate the Election with other elections (including the City's general municipal election, which will be called by separate resolution) held on the same day in the same territory or in the territory that is in part the same. Section 7. Canvass. The Board of Supervisors is authorized to canvass the returns of the Election pursuant to Section 10411 of the Elections Code. Section 8. Conduct of Election. Pursuant to Section 10002 of the Elections Code, the Board of Supervisors is requested to permit the County Clerk to render all services specified by Section 10418 of the Elections Code relating to the election, for which services the City agrees to reimburse the County, in accordance with current County pro-rations and allocation procedures. Section 9. Filing with County. The City Clerk shall file a certified copy of this Resolution with the County Clerk, 2018-19 CC Reso Page 2 of 8 May 22, 2018 Section 10. Impartial Analysis. The City Attorney shall prepare an impartial analysis of the measure. The analysis shall be included with other ballot materials. Section 11. Arguments. Any person may prepare an argument for or against the measure not exceeding 300 words in length. Rebuttal arguments shall be permitted. If more than one argument is submitted for or against the measure, or more than one rebuttal is submitted for or against the measure, for each, the City Clerk shall select the argument/rebuttal to be included with the ballot materials. PASSED, APPROVED AND ADOPTED BY THE City Council of the City of Grand Terrace at a regular meeting held on the 22"d day of May 2018. arcy Mc ab a ayor ATTEST: j� ebra L. Thomas, City Clerk APPROVED AS TO FORM: Richard L. Adams, II City Attorney 2018-19 CC Reso Page 3 of 8 May 22, 2018 EXHIBIT A ORDINANCE NO. AN ORDINANCE OF THE CITY OF GRAND TERRACE, CALIFORNIA ADDING CHAPTER 3.10 (SPECIAL PARCEL TAX) TO TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE THE PEOPLE OF THE CITY OF GRAND TERRACE DO ORDAIN AS FOLLOWS: Section 1. Adoption of Special Parcel Tax. Chapter 3.10 is hereby added to Title 3 of the Grand Terrace Municipal Code to read as follows: CHAPTER 3.10—Special Parcel Tax of 2018 Section 3.10.010. Short Title. This Chapter may be referenced as the Grand Terrace Special Tax Ordinance of 2018. Section 3.10.020. Tax Levied. An annual special tax is hereby levied by the City on all lots and parcels within the boundaries of the City other than lots and parcels that (i) are exempt from this tax pursuant to the Constitution or laws of the United States or of the Constitution or laws of the State of California or (ii) are exempt from the ad valorem property tax or have an ad valorem property tax liability of zero. Section 3.10.030. Maximum Rate. A. Maximum Rate. The maximum rate for the tax in tax year 2019-2020 shall be: 1. For residential parcels with only one dwelling unit on the parcel, $80.00. 2. For residential parcels with more than one dwelling unit on the parcel, $45.60 per dwelling unit. 3. For non-residential parcels, $100.00 per parcel. B. Annual Increase. The maximum rate of the tax shall increase for each of the following tax years by six percent. Thus, the maximum rates for each tax year is as follows: 2018-19 CC Reso Page 4 of 8 May 22, 2018 Tax Year Only one More than one Non-Residential dwelling unit on dwelling unit on Parcels the parcel the parcel (per (per parcel) dwelling unit 2019-2020 $80.00 $45.60 $100.00 2020-2021 $84.80 $48.34 $106.00 2021-2022 $89.89 $51 .24 $112.36 2022-2023 1 $95.28 $54.31 $119.10 2023-2024 $101.00 $57.57 $126.25 C. Definition of a "Residential Parcel." A parcel is a "residential parcel" if, at the time the City Council makes its determination pursuant to 3.10.040, the parcel contains at least one residential dwelling unit for which a certificate of occupancy has been issued. D. Definition of a "Non-Residential Parcel." A parcel is a "non-residential parcel" if it is not a "residential parcel." This includes vacant lots, and lots which are under construction. E. Dual Categories. If a residential parcel is also used for commercial, institutional other non-residential purposes (e.g. a mixed-use property), then the tax for that parcel shall be calculated by adding the tax for the number of residential dwelling units on the parcel to the prorated non-residential tax for the parcel. The prorated non-residential tax shall be calculated by: (i) dividing the improvement square footage for non-residential uses by the total improvement square footage for the parcel, and then (i i) multiplying the result of step (i) by the non-residential parcel rate. Section 3.10.040. Annual Proceedings. The City Council is authorized to determine for each tax year, by ordinance or resolution, the tax levied against each lot or parcel. The tax shall not exceed the maximum rate set forth in Section 3.10.030. The ordinance or resolution shall list each taxed lot or parcel by assessor's parcel number. The ordinance or resolution shall constitute the official record of the assessment of the special tax, and a copy thereof, together with any other pertinent data, shall be transmitted to the appropriate county officials to facilitate collection of the tax. Section 3.10.050. Collection. The tax shall be collected by the County of San Bernardino in the same manner and subject to the same penalty and procedure as ad valorem property taxes collected by the county. Unpaid taxes shall bear interest at the same rate as the 2018-19 CC Reso Page 5 of 8 May 22, 2018 rate for unpaid ad valorem property taxes until paid. The county may deduct its reasonable costs incurred for the service before remittal of the balance to the city. Section 3.10.060. Use of Funds. A. Proceeds of the tax shall be used only to fund law enforcement services. B. If at the time the city desires to use said funds, the city contracts with the San Bernardino Sheriff for law enforcement services, then proceeds of the tax may only be utilized to fund service in excess of the '208 Deputy Sheriff Hours Per Week' level of service. C. If, at the time the City desires to use said funds, the City has contracted with another entity for peace officer services, or if the City has provided, or will be providing, peace officer services itself, then the funds may only be utilized to fund services in excess of the '208 Deputy Sheriff Hours Per Week' level of service. D. For purposes of this section, the "208 Deputy Sheriff Hours Per Week" level of service means the set of services (and personnel hours) listed in the City's law enforcement contract with the Sheriff's Office for Fiscal Year 2017-2018, with such substitutions of services of similar cost as might be deemed appropriate by the City Manager. E. Beginning November 6, 2018, the City shall track as "enhanced service funding credits" all expenditures of general funds (or other funds not derived from the special tax levied pursuant to this chapter) on police services in excess of the "208 Deputy Sheriff Hours Per Week" level of service. At anytime, subsequent to the accumulation of such credits, the City may spend proceeds of the special tax on costs of law enforcement services that would otherwise be included in the "208 Deputy Sheriff Hours Per Week" level of service. The City shall not expend tax proceeds in this manner in excess of the total number of enhanced service funding credits that have been accumulated. Furthermore, for each dollar of tax proceeds spent in this manner, the City's balance of enhanced service funding credits shall be reduced by one dollar. F. Section E of this subdivision is included in this chapter because there will be a substantial delay between the election that approved this chapter and the first date the City will receive proceeds from the special tax. The intent of Subdivision E of this section is to make it possible for the City to initially fund enhanced services using general funds and then, once the City begins to receive special tax proceeds, use special tax proceeds to fund existing levels of service but only to the extent the general funds were used to fund enhanced services. 2018-19 CC Reso Page 6 of 8 May 22, 2018 Section 3.10.070. Accountability. A. Special Fund. The proceeds of the tax shall be deposited in a special account, to be created and maintained by the City. For so long as proceeds of the tax remain unexpended, the Finance Director of the City shall file an annual report with the City Council, stating the amount of taxes collected, the amount expended, and the purpose of the expenditures. Such annual report shall relate to the Fiscal Year most recently ended and may be incorporated into or filed with the annual budget, audit or other appropriate routine report to the City Council. B. Citizens Fiscal Accountability Board. For so long as proceeds of the tax remain unexpended, the Citizens Fiscal Accountability Board shall meet at least twice per year to make a report to the City Council on whether (1) the funds from the special tax have been used consistent with the requirements of section 3.10.060 of this chapter; and (2) whether contemplated uses of the funds are consistent with the requirements of section 3.10.060 of this chapter. From time to time, the City Council may direct the Board to report to the City Council on matters relating to the special tax. The Board shall have no powers or authority other than those explicitly granted to it by this section or by the City Council. 1. The Board shall be subject to the requirements of the Ralph M. Brown Act (Gov't Code § 54950 et seq.). 2. The Mayor, subject to the approval of the City Council, shall appoint five individuals to serve on the Board, with each appointed individual having been nominated by a different member of the City Council. If less than five members serve on the city council, the requirement to be nominated by a separate councilmember shall not apply. Two members' terms shall expire on July 1 , 2021. Three members' terms shall expire on July 1, 2023. Thereafter, all terms of members shall be four years. 3. If voter authorization for further collection of the parcel tax has expired, and no tax proceeds remain unexpended, the Board shall automatically dissolve. 4. All members of the Board shall serve at the pleasure of the City Council and may be removed at any time, with or without cause. 5. The Board, at its first meeting and at the first meeting after July 1, of each year thereafter, shall select one of its members to serve as chair, and one of its members to serve as vice-chair. Section 3.10.080. Duration. The levy of tax shall begin with tax year 2019-20. The final levy of the tax shall be for tax year 2023-2024, unless the tax is extended by a vote of the people. 2018-19 CC Reso Page 7 of 8 May 22, 2018 Section 3.10.090. Amendment. The City Council may, by ordinance, amend, repeal, renumber or recodify any or all of the provisions of this Chapter 3.10; provided, however, that no ordinance extending the tax beyond the dates set forth in Section 3.10.080, changing the permitted use of funds set forth in section 3.10.060, or increasing the maximum rate of the tax shall be effective unless submitted to, and approved by, the voters of the City as required pursuant to the applicable law at the time of such action. Section 2. Severability. If, for any reason, any portion of this Ordinance is rendered or declared invalid or unenforceable by a court or an administrative body of competent jurisdiction or by reason of any preemptive legislation, the remaining portions of this Ordinance shall remain in full force and effect. This Ordinance was approved and adopted by the People of the City of Grand Terrace at the November 6, 2018 election. Darcy McNaboe, Mayor ATTEST: Debra Thomas, City Clerk APPROVED AS TO FORM: Richard L. Adams, II City Attorney 2018-19 CC Reso Page 8 of 8 May 22, 2018 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) CITY OF GRAND TERRACE ) I Debra L. Thomas, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2018-19 was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, at the regular meeting of said City Council held on the 22"d day of May 2018, and that the same was passed and adopted by the following vote: AYES: Council Members Hussey, Henderson; Mayor Pro Tem Robles NOES: Council Member Wilson, Mayor McNaboe ABSENT: None. ABSTAIN: None. Executed this 23rd day of May 2018, at Grand Terrace, California. 2��dju� Debra L. Thomas City Clerk [SEAL]