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HomeMy WebLinkAboutOrd. 1555-2018 (18-567)City Council City of South San Francisco Ordinance: ORD 1555-2018 P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File Number: 18-567 Enactment Number: ORD 1555-2018 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AMENDING CHAPTER 4.20 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE CONCERNING THE TRANSIENT OCCUPANCY TAX. WHEREAS, the City of South San Francisco (“City”) adopted Ordinance No. 554, codified as Chapter 4.20 of the Municipal Code, which provided for the imposition and collection of a general excise tax on the privilege of using hotel accommodations in the City to be paid by hotel users and collected by hotel operators, otherwise known as the “transient occupancy tax” (“TOT”) rate. The TOT rate has subsequently been amended several times by the City Council and the voters of South San Francisco; and WHEREAS, Article XIIIC, section 2(b) of the California Constitution requires that any general tax for unrestricted general revenue purposes, such as the TOT rate, must be submitted to and approved by a majority vote of the voters voting on the issue of increasing the tax; and WHEREAS, pursuant to section 7280 of California Revenue and Taxation Code, the legislative body of a city may levy a tax on the privilege of occupying a room or rooms, or other living space, in a hotel, inn, tourist home or house, motel, or other lodging for a period of less than 30 days; and WHEREAS, the City Council of the City of South San Francisco (“City Council”) last adjusted the TOT rate from nine percent (9%) to ten percent (10%) during the duly noticed regular meeting held July 23, 2009; and WHEREAS, the City’s current TOT rate of ten percent (10%) ranks among the lowest in San Mateo County; and WHEREAS, a substantial portion of the City’s General Fund is used for public safety purposes and the City Council has determined that an additional increment to the TOT rate is an effective way of recouping costs associated with the impacts travelers and visitors have on the City’s many amenities, such as but not limited to police and fire protection services, traffic circulation, parks and recreation programs, and public roads; and WHEREAS, the proposed increase in TOT rate would generate additional funds for unrestricted general revenue purposes, including but not limited to helping offset the costs of public safety, community development, rising infrastructure needs related to streets and storm drains, and reducing the per capita cost of general municipal program and services paid by local residents and businesses; and WHEREAS, after receiving information at its June 13, 2018 City Council meeting, and after subsequently receiving testimony from the public, the City Council determined that the public interest would be well served Page 1 City of South San Francisco File Number: 18-567 Enactment Number: ORD 1555-2018 by asking the voters of South San Francisco to authorize an additional two percent (2%) increment to the existing TOT rate with an additional automatic one percent (1%) increment over two years, initially raising the total TOT rate from ten percent (10%) to twelve percent (12%) effective January 1, 2019, subsequently raising the total TOT rate to thirteen percent (13%) effective January 1, 2020, and finally raising the TOT rate to a maximum fourteen percent (14%) effective January 1, 2021; and WHEREAS, Article XIIIC, section 2(b) also requires that an election by the voters to approve a general tax must be consolidated with an election for City Councilmembers; and WHEREAS, the November 6, 2018 election includes an election of members of the City Council; and WHEREAS, as a general tax for unrestricted general revenue purposes, the two percent (2%) increment with an additional one percent (1%) increment over subsequent years up to a maximum of fourteen percent (14%) effective January 1, 2021 must be approved by a majority vote; and WHEREAS, pursuant to Government Code section 53724 and Election Code section 9222, the City Council desires to submit the Ordinance to the voters of the City. WHEREAS, after considering the foregoing information, the City Council believes that the proposed incremental adjustment to the existing TOT rate should be authorized by the voters of South San Francisco in the amount described herein, with implementation of the initial two percent (2%) increment effective January 1, 2019; and WHEREAS, based on all of the information presented at the June 13, 2018 City Council meeting, both written and oral, including without limitation the public comment, staff reports, minutes, and other relevant materials (hereafter the “Record”), the City Council finds that under CEQA Guidelines 15060(c)(2) and 15378(b)(4), this tax does not constitute a project under CEQA and therefore review under CEQA is not required. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO, SUBJECT TO VOTER APPROVAL, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Incorporation of Recitals. The City Council of South San Francisco, subject to voter approval, finds that all Recitals are true and correct and are incorporated herein by reference. SECTION 2. Amendments Chapter 4.20 of the South San Francisco Municipal Code is hereby amended to read as follows: Section 4.20.030 Amended: “Tax Imposed. For the privilege of occupancy in any hotel, each transient is subject to and shall pay a general tax for unrestricted general revenue purposes in the amount of eleven percent of the rent charged by the operator and a special tax of one percent. The general tax rate shall automatically increase each calendar year after the effective date at a rate of one percent per year up to a maximum rate of thirteen percent. The total general and special taxes imposed pursuant Page 2 City of South San Francisco File Number: 18-567 Enactment Number: ORD 1555-2018 nto this chapter shall equal no more than fourteen percent of the rent charged by the operator. If a room is rented by a firm, corporation, partnership, joint venture or any other organization on a long term basis, the tax imposed by this section shall fall upon and be borne by each individual who occupies or has the right to occupy the room for a period of thirty consecutive days or less. The tax constitutes a debt owed by the transient to the city, which is extinguished only by payment to the operator or to the city. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient’s ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the tax administrator may require that such tax shall be paid directly to the tax administrator.” SECTION 3. Compliance with the California Environmental Quality Act The approval of this ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et seq., “CEQA Guidelines”). This ordinance imposes a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the ordinance is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have either such effect, the City would undertake the required CEQA review for that particular project. Therefore, pursuant to CEQA Guidelines section 15060, CEQA analysis is not required. SECTION 4. Severability If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. SECTION 5. Effective Date of Tax If this ordinance is approved by a majority of the voters voting on the issue at the November 6, 2018 election, pursuant to Elections Code Section 9217, this ordinance shall be considered adopted on that date and the tax shall become effective January 1, 2019, or no sooner than 10 days after the City Council certifies the results of the election, whichever occurs later. SECTION 6. Voter Approval Required This ordinance shall only become operative if the tax imposed is approved by a simple majority of voters voting on the question at the November 6, 2018 election. SECTION 7. Publication This Ordinance shall be published once, with the names of those City Councilmembers voting for or against it, in the South San Francisco Examiner, a newspaper of general circulation in the City of South San Francisco, in accordance with Government Code Section 36933. * * * * * Page 3 City of South San Francisco File Number: 18 -567 Enactment Number: ORD 1555 -2018 Introduced at a regular meeting of the City Council of the City of South San Francisco held the 13th day of June, 2018. At a meeting of the City Council on 6/27/2018, a motion was made by Mark Addiego, seconded by Pradeep Gupta, that this Ordinance be approved. The motion passed. Yes: 4 Mayor Normandy, Mayor Pro Tern Matsumoto, Councilmember Gupta, and Councilmember Addiego Absem C &Vnal�� (.e Liza Normandy, Mayor (7 1 City of South San Francisco Page 4 CERTIFICATE OF THE CHIEF ELECTIONS OFFICER In the matter of the CANVASS OF VOTES CAST ) at the STATEWIDE GENERAL ELECTION ) held on November 6, 2018 ) I, MARK CHURCH, Chief Elections Officer of the County of San Mateo, State of California, hereby certify: THAT an election was held within the boundaries of the CITY OF SOUTH SAN FRANCISCO on Tuesday, November 6, 2018, for the purpose of submitting Measures FF and LL to the qualified electors; and I caused to have processed and recorded the votes from the canvass of all ballots cast at said election within the boundaries of the CITY OF SOUTH SAN FRANCISCO. 1 HEREBY FURTHER CERTIFY that the record of votes cast at said election is set forth in Exhibit "A" attached hereto and incorporated herein by reference as though fully set forth at length. IN WITNESS WHEREOF, I hereunto affix my hand and seal this 6t" day of December, 2018, and file this date with the City Clerk of the CITY OF SOUTH SAN FRANCISCO. 4�:O:;' �44w.."4 00000���� MARK CHURCH Chief Elections Officer & Assessor -County Clerk -Recorder EXHIBIT A COUNTY OF SAN MATEO STATEMENT OF THE VOTE Page 405 of 423 CITY OF SOUTH SAN FRANCISCO MEASURE FF (MAJORITY APPROVAL REQUIRED); CITY OF SOUTH 66 SAN FRANCISCO MEASURE LL (MAJORITY APPROVAL REQUIRED) 0 0 0 U U Q Q 0_ W 0_ u- Q Q F F = 0 LL J OU o Cu o � W W m U LW N 0 0 n o E U }QU U }QU WF W O m F� Ute} Z U2> 1801 1,509 997 66.1 698 226 687 231 1802 1,316 947 72.0 647 242 662 219 1803 916 537 58.6 389 107 359 138 1806 2,119 1,386 65.4 975 307 959 319 1807 1,606 1,132 70.5 819 241 771 267 1810 1,585 969 61.1 680 222 646 250 1813 825 517 62.7 355 118 345 120 1814 946 558 59.0 381 139 369 151 1815 1,059 614 58.0 440 136 412 159 1816 696 464 66.7 321 111 321 108 1818 949 614 64.7 434 143 419 151 1819 1,570 1,081 68.9 747 269 733 272 1820 243 172 70.6 125 40 130 34 1821 1,777 1,229 69.2 637 319 854 280 1824 1,107 747 67.5 512 190 543 154 1833 1,295 968 74.7 670 212 663 200 1835 1,707 1,206 70.7 824 298 826 284 1837 849 605 71.3 399 167 399 153 1838 127 78 61.4 58 14 52 19 1851 317 191 60.3 139 38 130 47 1854 189 130 68.8 91 34 92 32 5809 681 419 61.5 276 115 307 85 5816 184 134 72.8 99 29 97 27 5822 886 612 69.1 426 147 418 145 5823 922 626 67.9 427 165 451 141 5825 2,236 1,328 59.4 938 30 987 244 5827 1,855 1,151 62.0 799 263 816 231 5829 1,915 1,201 62.71 826 280 863 229 5832 941 624 66.31 431 142 1 456 116 Early Voting Totals 32,327 2,904 9. 1994 679 1895 756 Absentee Totals 32,327 18,333 56.7 12769 433 12872 4050 Election Day Totals 32,32 0 0.0 0 0 0 Grand Totals 32.32 21,237 657 14763 5018 14767 4806 COUNTY OF SAN MATEO STATEMENT OF THE VOTE Page 406 of 423 Early Voting Totals CITY OF SOUTH SAN FRANCISCO MEASURE FF (MAJORITY APPROVAL REQUIRED); CITY OF SOUTH 66 SAN FRANCISCO MEASURE LL (MAJORITY APPROVAL REQUIRED) O o 0) cn U U Q Q LL u - U) w c N 0 O LL 0 O o m : n w w p U Lt LL y O O n B o E U F w U U F W U K m Fes- Ute} Z U2} O 14TH CONGRESSIONAL DISTRICT 32,327 2,904 9.0 1994 679 1895 756 19TH ASSEMBLY DISTRICT 11,306 962 8.5 652 230 641 236 22ND ASSEMBLY DISTRICT 21,021 1,942 9.2 1342 449 1254 520 1ST SUPERVISORIAL DISTRICT 22,707 2,135 9.4 1483 493 1389 575 5TH SUPERVISORIAL DISTRICT 9,620 769 8.0 511 126 506 181 11TH SENATORIAL DISTRICT 9,238 788 8.5 543 176 525 189 13TH SENATORIAL DISTRICT 23,089 2,116 9.2 1451 503 1370 567 BOARD OF EQUALIZATION DIST2 32,327 2,904 9.0 1994 679 1895 756 CITY OF SOUTH SAN FRANCISCO 32,327 2,904 9,0 1994 679 1895 756 JEFFERSON UNION HIGH SCHOOL 184 13 7.1 10 3 11 1 SMC BOARD OF ED TRUSTEE AREA 1 32,327 2,904 9.0 1994 679 1895 756 SAN MATEO COUNTY HARBOR 32,327 2,904 9.0 1994 679 1895 756 SOUTH SAN FRANCISCO UNIFIED 1 32,143 2,891 9.0 1984 676 1884 755 Early Voting Totals 1 32,32 21904 9.0 1 1994 679 1 1895 756 COUNTY OF SAN MATEO STATEMENT OF THE VOTE Page 407 of 423 Absentee Totals CITY OF SOUTH SAN FRANCISCO MEASURE FF (MAJORITY APPROVAL REQUIRED); CITY OF SOUTH 66 SAN FRANCISCO MEASURE LL (MAJORITY APPROVAL REQUIRED) 0 0 U U U Q wu- LLLL N cn H c ;� .-. 0 w O w F 0 J O w o m o cn w to w ly LL N N 0 0 o �w I w m F U 2> Z U te} Z 14TH CONGRESSIONAL DISTRICT 32,327 18,333 56.7 12769 4339 12872 4050 19TH ASSEMBLY DISTRICT 11,306 6,363 56.3 4458 1502 4556 1352 22ND ASSEMBLY DISTRICT 21,021 11,970 56.9 8311 2837 8316 2698 1ST SUPERVISORIAL DISTRICT 22,707 13,007 57.3 9058 308C 8983 3013 5TH SUPERVISORIAL DISTRICT 9,620 5,326 55.4 3711 125S 3889 1037 11TH SENATORIAL DISTRICT 9,238 5,160 55.9 3595 1242 3711 1083 13TH SENATORIAL DISTRICT 23,089 13,173 57.1 9174 3097 9161 2967 BOARD OF EQUALIZATION DIST2 32,327 18,333 56.7 12769 4339 12872 4050 CITY OF SOUTH SAN FRANCISCO 32,327 18,333 56.7 12769 4339 12872 4050 JEFFERSON UNION HIGH SCHOOL 184 121 65.8 89 26 86 26 SMC BOARD OF ED TRUSTEE AREA I 32,327 18,333 56.7 12769 433 12872 4050 SAN MATEO COUNTY HARBOR 32,327 18,333 56.7 12769 4339 12872 4050 SOUTH SAN FRANCISCO UNIFIED 32,143 18,212 56.7 12680 431 1 127861 4024 Absentee Totals 32,32 18,333 56.7 12769 433 1 128721 4050 COUNTY OF SAN MATEO STATEMENT OF THE VOTE Page 408 of 423 Grand Totals CITY OF SOUTH SAN FRANCISCO MEASURE FF (MAJORITY APPROVAL REQUIRED); CITY OF SOUTH 66 SAN FRANCISCO MEASURE LL (MAJORITY APPROVAL REQUIRED) O O Cn U) U U W LL W Q Q 2 = H 7 H 7 c y _ O LL O J O N o U) W (n W Z6 0 LL LL N N OO o a E FwU �wU m c1�j O O U�> 14TH CONGRESSIONAL DISTRICT 32,327 21,237 65.7 14763 5018 14767 4806 19TH ASSEMBLY DISTRICT 11,306 7,325 64.8 5110 1732 5197 1588 22ND ASSEMBLY DISTRICT 21,021 13,912 66.2 9653 3286 9570 3218 1ST SUPERVISORIAL DISTRICT 22,707 15,142 66.7 10541 3573 10372 3588 5TH SUPERVISORIAL DISTRICT 9,620 6,095 63.4 4222 1445 4395 1218 11TH SENATORIAL DISTRICT 9,238 5,948 64.4 4138 1418 4236 1272 13TH SENATORIAL DISTRICT 23,089 15,289 68.2 10625 3600 10531 3534 BOARD OF EQUALIZATION DIST2 32,327 21,237 65.7 14763 5018 14767 4806 CITY OF SOUTH SAN FRANCISCO 32,327 21,237 65.7 14763 5018 14767 4806 JEFFERSON UNION HIGH SCHOOL 184 134 72.8 99 29 97 27 SMC BOARD OF ED TRUSTEEAREA 1 32,327 21,237 65.7 14763 5018 14767 4806 SAN MATEO COUNTY HARBOR 32,327 21,237 65.7 14763 5018 14767 4806 SOUTH SAN FRANCISCO UNfFIED 1 32,143 21,1031 65.7 1 146r>41 4989 1 14670 4779 Early Voting Totals 32,32 2,904 9 67 1895 756 Absentee Totals 32,32 18,333 56.7 4339 12872 4050 Election Day Totals 32,32 0 0.0 LJ12769 0 0 Grand Totals 3232 21 237 657 5018 14767 4806 CITY OF SOUTH SAN FRANCISCO MEASURE FF CITY ATTORNEY'S IMPARTIAL ANALYSIS c n v 65 Measure FF is a ballot measure that, if approved by the voters, would authorize upab " four percent (4%) increase to the Transient Occupancy Tax (TOT) in the City of South San FrOi ("City"). The City's current TOT rate is 10%. The City's TOT is levied on the rental cost of a hFkel room within the City and is charged to visitors when renting a hotel room for less than thirty cons`' ; e calendar days. A hotel is defined to include a hotel, inn, tourist home or house, motel or other 1(2 located within the Citi=, Eye CC A vote in favor of this ballot measure would authorize an initial increase to the City'FTOT rate by 2% in 2019. The ballot measure would also authorize an additional 1 % each year, up to a maximum TOT rate of 14%. If passed by the voters, Measure FF would first increase the City's TOT rate to 12%, effective January 1, 2019. Subsequently, the ballot measure would then increase the City's TOT rate to 13%, effective January 1, 2020. Finally, Measure FF would increase the City's TOT rate to a maximum of 14%, effective January 1, 2021. The ballot measure if passed would generate approximately $5.9 million of additional revenue annually for the General Fund. Because Measure FF does not limit the use of tax revenue generated by this tax to specified uses, it is a general tax. Therefore, the City may use the funds for any legitimate governmental purpose. If approved by the voters, the tax will be deposited into the City of South San Francisco's general fund and may be used to pay for and maintain parks and recreation facilities, transportation and infrastructure improvements, and to offset the additional use of police and fire services incurred by visitors to the City. The current TOT consists of three components — a 9% general excise tax that generates General Fund revenues; a 1 % special tax used for the purpose of funding parks, recreation, library and public safety services (SSFMC § 4.20.033); and a $2.50 tax devoted to the acquisition, renovation, maintenance and operation of the South San Francisco Conference Center. The City Council last increased the total TOT rate from 9% to 10% in 2009, with the incremental 1 % increase being a general tax. The 1 % special tax was imposed in 2005, and the $2.50 conference center tax was imposed in 1989. A "Yes" vote is a vote to approve an increase to the TOT rate. The initial 2% increase would revise the City's TOT rate from 10% to 12% effective January 1, 2019. A subsequent 2% increase over the next two years would revise the TOT rate to 13% effective January 1, 2020 and 14% effective January 1, 2021. A "No" vote is a vote against increasing the TOT rate and would maintain the current TOT rate of 10%. Measure FF would be approved if it received a majority of "Yes" votes. Z::� -- as Rose ity Attorney