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HomeMy WebLinkAboutReso 76-2004RESOLUTION NO. 76-2004 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO A RESOLUTION AUTHORIZING PLACEMENT ON THE NOVEMBER BAI.LOT A MEASURE SEEKING VOTER AUTHORIZATION TO COLLECT A BUSINESS LICENSE TAX ON THOSE ENTITIES HAVING ADVERTISING SIGNS LOCATED WITHIN THE CITY BASED UPON THE GROSS RECEIPTS OF THOSE ENTITIES FROM REVENUE DERIVED FROM SAID SIGNS AND AMENDING TITLE 6 OF THE SOUTH SAN FRANCISCO MUNICIPAl. CODE, BUSINESS REGUIATIONS, TO SPECIFY ENTITIES SUBJECT TO THE LICENSE REQUIREMENT AND ESTABLISHING PROCEDURES FOR COLLECTING THE BUSINESS LICENSE TAX WHEREAS, pursuant to its authority under California Revenue and Taxation Code Sections 7280 et seq., the City Council of the City of South San Francisco adopted Ordinance No. 720, codified as Title 6 of the Municipal Code, which provided for the imposition and collection of a general excise tax on the privilege of operating a business within the City (a "business license tax") to be paid by owners and operators of businesses located in the City; and WHEREAS, the City Council has determined that certain business operators, because they do not have physical business addresses within the City limits, have not been subject to the existing business license tax; and WHEREAS, in order to ensure that all businesses deriving revenue from operations in the City are treated equally, the City Council has determined that amendments to Title 6 are required; and WHEREAS, the proposed amendments would impose a tax on those persons, firms, corporations or companies owning or operating off-premises advertising signs where such signs are located within the City and containing equal to or greater than 250 square feet of advertising copy; and WHEREAS, Article XIIIC, Section 2(b) of the California Constitution requires that any special tax, such as this business license tax, must be approved by a 2/3 majority vote of the voters voting on the issue of imposing the tax; and WHEREAS, the City Council of the City of South San Francisco (the City Council) expressed its intent to impose a business license tax on billboard advertisers in the amount of eight percent (8%) of the gross receipts obtained from advertising on the billboards located in the City during the duly noticed regular meeting held July 14, 2004; and WHEREAS, a substantial portion of the City's General Fund (as established in the City's budget for Fiscal Year 2004-2005) is used for public safety purposes (police and fire protection services) and the City Council has determined that imposing a business license tax on billboard advertisers is an effective way of preserving other vital public services such as park, library, and public safety services at or near current levels; and WHEREAS, after receiving information at its July 14, 2004 City Council meeting and prior budget workshops regarding the effects of the current economy and State budget on the City's finances and ability to fund necessary community services, and after subsequently receiving testimony from the public, the City Council determined that the public interest would be well served by asking the voters of South San Francisco to authorize a business license tax for billboard advertising in an amount equal to eight percent (8%) of the gross receipts obtained by the owner/operator for such advertising; and WHEREAS, given the uncertainty in the state budget, the City needs to identify revenue sources for fiscal year 2005-2006 and thereafter in order to provide continuity in public safety, library, parks and recreation services; and WHEREAS, the billboard advertisers business license tax is hereby proposed as a Special Tax with revenues derived from the increase specifically designated to fund park, recreation, public safety and library services; and WHEREAS, pursuant to Government Code Section 50075.1, the City declares that the proceeds from the special tax shall only be used for the purposes designated herein and that an account shall be created for the purpose of maintaining such revenues. An accounting of the funds deposited and report of all funds deposited and expended shall occur on an annual basis in accordance with the provisions of Government Code Section 50075.3; and WHEREAS, the tax imposed pursuant to this measure will be collected in accordance with the procedures established in Exhibit A, including any references contained therein; and WHEREAS, as a Special Tax, the tax must be approved by a 2/3 majority vote; and WHEREAS, after considering the foregoing information, the Council believes that the extension of the existing business license tax to commercial billboard operators provides for a more equitable distribution of tax liability for business owners by capturing businesses that derive revenue from advertising in the City but are not subject to the existing tax because they do not have an office or facility in the City; and WHEREAS, the City Council has determined that an eight percent (8%) tax on the gross receipts of said billboard operators should be authorized by the voters of South San Francisco with implementation of the tax effective January 1, 2005; and WHEREAS, the cost of conducting the Special Election is $26,000 and will be paid out of the City Clerk's budget pursuant to the authorization contained in Resolution No. 75-2004, adopted by a 2/3 majority vote of the City Council on July 28, 2004; and WHEREAS, based on all of the information presented at the July 28, 2004 City Council meeting, both written and oral, including the staff reports, minutes, and other relevant materials (hereafter the "Record"), the City Council finds that under CEQA Guidelines 15060(c)(2); and 2 15378(b)(4), this tax does not constitute a project under CEQA and therefore review under CEQA is not required. NOW, THEREFORE, BE IT RESOLVED, as follows: 1. Call for Election. Pursuant to Elections Code §9222, the City Council established November 2, 2004, as the date for a Special Municipal Election at which the voters of the City of South San Francisco are to decide whether to impose an additional one percent (1%) increment to the existing transient occupancy tax. The City Council has determined that it is appropriate and efficient to add a measure for the voters' consideration to authorize a business license tax for commercial billboard operators in the amount of eight percent (8%) of the gross receipts derived from advertising signs located within the City of South San Francisco. The measure shall be designated by letter by the City Clerk. Pursuant to Election Code Section 10400 et seq., the measure shall be consolidated with the City Special Municipal Election to be conducted on November 2, 2004. 2. Ballot Language. The ballot language for the proposed measure shall be as follows: Shall the City of South San Francisco be authorized to collect a business license tax from owners and operators of commercial billboards located within the City equal to eight percent (8%) of the gross receipts received from such advertising with the revenue from the tax specifically reserved for park, recreation, library and public safety services? [2]Yes [] No 3. Proposed Ordinance. The ordinance authorizing a business license tax for commercial billboard operators pursuant to Section 2 is as set forth in Exhibit A attached hereto. 4. Submission of Ballot Arguments and Impartial Analysis. (a) The last day for submission of direct arguments for or against the measure shall be by 5:00 p.m. on August 13, 2004. (b) The last day for submission of rebuttal arguments for or against the measure shall be by 5:00 p.m. on August 23, 2004. (c) Direct arguments shall not exceed three hundred words and shall be signed by not more than five persons. (d) Rebuttal arguments shall not exceed two hundred fifty words and shall be signed by not more than five persons; those persons may be different persons than the persons who signed the direct arguments. (e) The City Attorney shall prepare by August 11, 2004, an impartial analysis of the measure showing the effect of the measure. [Optional] (f) The Mayor (or Councilmember ) is hereby authorized to prepare written arguments in favor of the proposed measures, not to exceed 300 words, on behalf of the City Council. The arguments may also be signed by bona fide associations or by individual voters who are eligible to vote. 5. Effective Date. This Resolution shall become effective immediately upon its passage and adoption, and the City Clerk is directed to send certified copies of this Resolution to the San Mateo County Board of Supervisors and to the County Clerk-Recorder. The Services Agreement for the Provision of Election Services between City of South San Francisco and San Mateo County Assessor-County Clerk-Recorder is attached hereto as Exhibit B. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 28th day of July 2004 by the following vote: AYES: Councilmembers Joseph A. Fernekes, Richard A. Garbarino, and Pedro Gonzalez, Vice Mayor Raymond L. Green and Mayor Karyl Matsumoto NOES: None. ABSTAIN: None. ABSENT: None. ATTEST: City Clerk 4 EXHIBIT A ORDINANCE NO. AN ORDINANCE OF THE PEOPLE OF THE CITY OF SOUTH SAN FRANCISCO AMENDING TITLE 6 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE TO ADD CHAPTER 6.16.048 IMPOSING A BUISNESS LICENSE TAX ON COMMERCIAL BILLBOARD ADVERSTISERS OPERATING WITHIN THE CITY OF SOUTH SAN FRANCISCO The People of the City of South San Francisco do hereby ordain as follows: SECTION 1. Title 6 is hereby amended to read as follows: New Section: "Chapter 6.16.048, Commercial Billboard Advertising (a) Commercial Billboard Advertising Defined. For purposes of this section only, "commercial billboard" means any sign which advertises goods, products, services or facilities not sold on the premises upon which the sign is located ("off premises signs"). Nothing contained in this section shall be deemed or construed as applying to the owners of real estate or their agents in advertising their property for sale or lease by means of billboards or advertising sign boards situated upon the property advertised for sale or lease by such billboards or advertising signs. (b) "Operator" means any person, company or corporation who, as owner, lessee, employee, agent or otherwise, operates, maintains, manages, keeps, permits or allows to be operated, maintained, managed or kept any commercial billboard in or upon any premises owned, leased, managed, operated or controlled by such'person within the city. (c) Regulated Billboards. Those off-premises signs that have an advertising area equal to or greater than 250 square feet in copy. The size of 250 square feet minimum shall apply to the size of the entire advertising face of one billboard, even if that billboard face may be divided into smaller portions for smaller advertising. (d) Exempt signs: Those signs that are erected for less than 60 days and in connection with a not-for-profit event. (e) The license tax shall be paid to the City by the billboard operator. The license tax payable by operator shall be eight percent of the gross receipts received by the operator fi'om the sale, lease, or rental of advertising space on the regulated billboards located within South San Francisco without deduction therefrom. (f) Tax shall be remitted by billboard operator to the City on a quarterly basis, and shall be due to the City within 30 days after the close of a calendar quarter, i.e., within 30 days after: March 31, June 30, September 30, and December 31st each year. City may request backup revenue documentation fi'om operator sufficient to support the tax payments by operator." SECTION 2. SECTION 3. SECTION 4. SECTION 5. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of this ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this ordinance are severable. The People of the City of South San Francisco hereby declare that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. Election Required for Tax to be Effective. The tax proposed by this ordinance shall not become effective until approved by 2/3 of the voters voting on the issue at the November 2, 2004 election. Effective Date of Tax. If this ordinance is appro~,ed by a majority of the voters voting on the issue at the November 2, 2004 election, pursuant to Elections Code Section 9217, this ordinance shall be considered adopted on that date and the tax shall become effective January 1, 2005, or no sooner than 10 days after the Council certifies the results of the election, whichever occurs later. Publication. This Ordinance shall be published once, with the names of those City Councilmembers voting for or against it, in the San Mateo County Times, a newspaper of general circulation in the City of South San Francisco, in accordance with Government Code Section 36933. 2 Introduced at a regular meeting of the City Council of the City of South San Francisco, held the day of 2004. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the day of 2004, by the following vote: AYES: NOES: ABSTAIN: ABSENT: this ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance day of 2004. Mayor EXHIBIT B SERVICE AGREEMENT FOR THE PROVISION OF ELECTION SERVICES BETWEEN CITY OF SOUTH SAN FRANCISCO AND SAN MATEO COUNTY ASSESSOR-COUNTY CLERK-RECORDER This agreement, entered into this __ day of ,2004, by and between the City of South San Francisco and San Mateo County Assessor-County Clerk'Recorder (hereinafter referred to as County Clerk); WHEREAS, it is necessary and desirable that the County Clerk be retained for the purpose of conducting an election hereinafter described for the City of South San Francisco (hereinafter referred to as City); NOW, THEREFORE, IT IS HEREBY AGREED BY THE PARTIES HERETO AS FOLLOWS: SERVICES TO BE PERFORMED BY THE CITY OF SOUTH SAN FRANCISCO: 1) No later than the 88th day prior to the election the City of South San Francisco will request the Board of Supervisors through the County Clerk to conduct an election for the City of South San Francisco on November 2, 2004, and will request services of the County Clerk. This section is apphcable only if additional matters will be placed on the ballot, and a resolution is required. 2) The City will pubhsh the Notice of Election and the Notice to File Declarations of Candidacy for the offices to be voted on, and/or the Notice to File Arguments For or Against any measure. 3) The City will submit to the County Clerk the tides and exact number of offices to be voted on, the names and ballot designations of the candidates for those offices, and/or the exact ballot measure wording to be voted on by the 85th day prior to the election, or by the 82nd day prior to the election if Elections Code §§ 10225, 10229, and 10407 become applicable. 4) The City Clerk will prepare and deliver to the County Clerk the ballot pamphlet information containing, as applicable, candidate statements, ballot measure, tax rate statement, impartial analysis, arguments for or against and rebuttals thereto. The last day for primary arguments (300 words) to be submitted is August 13, 2004. The last day for rebuttal arguments (250 words) and impartial analysis is August 23, 2004. 5) The City will review and sign off on the sample ballot and official ballot wording for the City's Candidates/Measures. SERVICES TO BE PERFORMED BY COUNTY CLERK: 1) The County Clerk will select the sample and official ballot printer(s) and translators. 2) The County Clerk will prepare and deliver all election information to the printers and translators. 3) The County Clerk will issue, receive and process absentee ballots. 4) The County Clerk will set up all polhng place locations, hire po]ling place workers, pubhsh required notice, and conduct the election. 5) The County Clerk will prepare a Canvass of Votes Cast and submit a Certificate of County Clerk to the City of South San Francisco. 6) The County Clerk will conduct other various and miscellaneous election activities as required including but not limited to all those required of the City's Election Official, other than those described under "Services to be Performed by the City of South San Francisco". TERMS: This agreement shall be in effect for the performance of all services incident to the preparation and conduct of the election to be held on November 2; 2004. In the event the County Clerk is unable to perform services required under this Agreement, as a result of employer/employee relation conditions, vendor conditions or other conditions beyond the control of the County Clerk, the County Clerk will be relieved of all obligations under this Agreement. The County Clerk may terminate this agreement after giving 72 hours written notice and the County Clerk will be relieved of all obligations. This agreement can be mutually terminated upon a 30 day written notice. CONSIDERATION: In consideration of the performance of services and supplies provided by the County Clerk, the CiW of South San Francisco shall pay to the County Clerk a sum equal to the actual cost of such services and supplies. The City of South San Francisco shall make payment within 30 days of receipt of invoice fxom County Clerk. CITY: Signature: Date: Print Name: Title: COUNTY: Signature: Date: Print Name: Title: