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HomeMy WebLinkAboutAgenda Report - July 6, 2016 I-01 ERCITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM S-1 AGENDA TITLE: Introduce Ordinances Enacting a Special Transactions and Use Tax for Parks and a Special Transactions and Use Tax for Public Safety (Police and Fire), to be Collected and Administered by the State Board of Equalization, Subject to Adoption by the Electorate; Adopt Resolutions Calling for an Election to Ask the Voters of the City of Lodi to (i) Approve a Special Transactions and Use Tax for Parks in the Amount of One -Eighth Cent per Dollar (0.125%) for a Period of Fifteen Years, with the Use of the Tax Revenue to be Used Exclusively for Park Repairs, Maintenance, Improvements, and Upgrades, and to be Reviewed by an Independent Citizens Oversight Committee, and (ii) Approve a Special Transactions and Use Tax for Public Safety in the of Amount of One -Quarter Cent per Dollar (0.25%) for Fifteen Years, with the Use of the Tax Revenue to be Used Exclusively for Increased Staffing and Training of Police and Fire Personnel, and to be Reviewed and Reported on by an Independent Citizens Oversight Committee and Further Requesting that the Board of Supervisors for the County of San Joaquin Consolidate the Election with the Established Election to be held on November 8, 2016, and Direct the County Registrar of Voters to Conduct the Election on the City's Behalf MEETING DATE: July 6, 2016 PREPARED BY: City Manager, City Attorney. Police Chief, Fire Chief. and PRCS Director RECOMMENDED ACTION: That the Council introduce ordinances for transactions and use taxes to be administered by the State Board of Equalization, and adopt resolutions calling for an election by the voters for a one- eighth cent per dollar (0.125%) sales tax for parks and a one- quarter cent per dollar (0.25%) sales tax for public safety (police and fire) to be place on the ballot for the November 8, 2016 general election. BACKGROUND INFORMATION: The City's aging parks facilities are in urgent need of repair and upgrades. In addition, improvements to embankments at Lodi Lake are critical to correct erosion and prevent further loss of useable parkland. The City is without the revenue to fund the needed repairs and improvements. Also, Council has expressed a desire to increase Police staffing and return Fire Engine 1 to service. Engine 1 has operated in a `brown -out' mode since 2009, due to a lack of funding. Again, the City is without a revenue source to fund the addition of public safety personnel and necessary training. In order to fund park improvements and increase public safety staffing and training, the City has explored the possibility of a ballot measure proposing to raise revenue through a Transactions and Use Tax (i.e., sales tax) within the City of Lodi. The proposed "special purpose tax" would be paid in addition to the current sales tax and would be collected at the same time and in the same manner as the existing eight percent (8%) sales tax. California law authorizes the City Council on a two-thirds (2/3) vote of all members of the City Council to impose a "special purpose tax", provided the tax is approved by two- thirds (2/3) of the voters at a general election. Special tax revenue is legally restricted to the purposes APPROVED: Step - - hwabauer, anager identified in the ballot measure, and cannot be re -purposed to other City operations, programs, or services. Following shirtsleeve meetings on May 3, 2016 and May 17, 2016, and on recommendation of the Parks and Recreation Commission, following receipt of the Parks Strategic Plan, Council directed staff to prepare special sales tax ordinances placing a one-eighth cent per dollar (0.125%) sales tax measure to rehabilitate the city's aging parks infrastructure on the November 8, 2016 general election ballot and a sales tax ordinance for a one-quarter cent per dollar (0.25%) sales tax measure to increase Police and Fire staffing, return Engine 1 to service, and enhance training of public safety personnel. The estimated revenue to be generated by each tax measure and the proposed spending plans are set forth in detail below. Current sales tax rates within San Joaquin County are as follows: Escalon — 8% Manteca — 8.5% Tracy — 8.5% Lathrop — 9% Lodi — 8% Ripon — 8% Stockton — 9% Unincorporated Areas — 8% Should the voters approve the sales tax increases in November, Lodi's sales tax rate would increase from 8.0 cents per dollar to 8.375 cents per dollar. For example, the sales tax for every $100 of purchased taxable merchandise would increase from $8.00 to $8.375, a 37.5 -cent increase. Council requested that a sunset clause be included in both tax measures. A sunset clause is a provision stating that the tax measure ends or "sunsets" after a certain period of time. Sunset clauses are perceived as beneficial because the tax is temporary and voters determine the period of time the tax is in effect. Extension of a sunset provision beyond the sunset date requires voter approval. In order to accomplish the proposed spending plans for parks and public safety, staff recommends a 15 -year sunset. Council also directed that the tax measures include establishment of citizen oversight committees to oversee expenditures of the additional sales tax revenue. As drafted the tax measures for parks and public safety call for the establishment of citizen oversight committees to be charged with meeting annually to review the previous year's expenditure of the increased tax revenues. The committees would then compile a report to the Council stating how the funds were spent. The report would be presented at a regularly scheduled meeting of the Council and subject to public comment and discussion. In addition, staff has included a provision in each of the tax measures requiring that the City's independent auditors audit the collection, management, and expenditure of the increased tax revenue during their annual audit of City finances. The report would be included in the City's Comprehensive Annual Financial Report (CAFR) that is reviewed annually and approved by the Council following public comment and discussion. Pursuant to Government Code section 36937(d), ordinances related to taxes shall take effect immediately, and Government Code section 36937 allows ordinances related to taxes to be passed immediately upon introduction. Consequently, the ordinances will be effective immediately upon adoption by a 2/3 vote of all members of the City Council, subject to 2/3 voter approval at the November 8, 2016 general election. Both ordinances have been reviewed and approved by the Board of Equalization and are attached to this council communication. Parks: The passage of a one-eighth cent per dollar (0.125%) sales tax measure for parks by the voters would enable the City to generate an estimated $1,400,000 in additional revenue annually (approximately $21,000,000 over fifteen years), enabling the City to begin addressing maintenance and repair work in City parks, in addition to upgrading park amenities and infrastructure. Revenue generated from the additional sales tax allocated for parks will be placed in a special fund and may only be expended in accordance with the expenditure plan set forth in the detail in the ordinance and outlined below: Repair and maintain: Parks Expenditure Plan $15.5 Million* Protect Lodi Lake Park • Reconstruct roadway and parking lots • Repair eroded riverbank, reclaim collapsed amphitheater • Replace north playground • Rehabilitate Nature Area trail system Protect Our Children • Replace outdated or previously removed playgrounds at Candy Cane, Emerson, Beckman, English Oaks, and Henry Glaves Parks; update other playgrounds as needed • Replace and maintain playground fall zones with adequate materials • Replace and repair worn Skate Park features rather than eliminating them Fix What's Broken • Replace facility roofs, garbage cans, sports courts, sports lighting, bleachers, swimming/wading pool mechanical systems and surfaces as they wear out • Irri•ation re airs Safe and Comfortable Parks Save Water Upgrades: Make Lodi Lake Park Better • New picnic tables, benches, drinking fountains, renovated restrooms • Prune or remove diseased, dying trees • Rehabilitate park parking lots • Park turf aeration, gopher control, levelin•, etc. • Replace failing irrigation systems • Remove little -used turf areas and replace with low water -use alternatives $5.5 Million • Build new three-quarter mile riverfront trail, explore potential for water bridge • Replace restrooms • Develop park master plan, invest in community -desired improvements • Build kayak launch improvements Improve Our Neighborhood Parks, Other Facilities • Build splash pad • Improve sports field lighting • Install dog park amenities • Grape Bowl access improvements • Install playground/picnic shelter at Beckman Park, others; replace restrooms • Improve picnic area on west side of Peterson Park • Reconfigure sports fields at Blakely Park *Investment dollar amounts reflected on this document are estimations and sub'ect to chane Public Safety (Police and Fire): The passage of a one-quarter cent per dollar (0.25%) sales tax measure for public safety by the voters would enable the city to generate an estimated $2,800,000 in additional revenue annually, to be distributed 64 percent to Police (an estimated $1,792,000 per year) and 36 percent to Fire (an estimated $1,008,000 per year), (cumulatively, an estimated $26,880,000 to Police and $15,120,000 to Fire over 15 years). Police: The City of Lodi has experienced a dramatic increase in property crimes over the last couple of years that has affected the quality of life in our community. Rising crime rates and increased calls for service have dramatically affected our ability to attract new families, businesses, and investments. A safe community is the foundation to a vibrant and successful community, however, the implementation of AB109 (2011 Public Safety Realignment) and Proposition 47, combined with decreased Police Department staffing levels, have resulted in a number of gang -related incidents and a surge in property crimes within the City of Lodi. Lodi Police Department staffing levels are at an all-time low; normal police patrols that are critical in preventing criminal activity have been dramatically impacted due to low levels of staffing. This is reflected by increased response times and increased overtime costs to cover officer vacancies. Addressing the first issue involves simply adding more police officers patrolling the streets. The Lodi Police Department needs more police officers to respond to emergency law enforcement calls and allow for proactive patrols that will deter criminal activity and restore public confidence in the safety of our community. Additional sales tax revenue will allow for an increase in patrol staffing levels, and gang enforcement officers to work within the community to combat the growing number of gang -related incidents. The Department will also hire an additional part time Youth Outreach Worker, to complement and enhance the relationships the existing Youth Outreach Worker has developed within the community. Because of the gang lifestyle has a strong attraction to youth, it is imperative that the City not only continue to fund one Youth Outreach Worker, but a second part-time Youth Outreach Worker to expand gang intervention and prevention work within the Lodi community. In addition, the Department will hire two part-time sworn park rangers to assist PRCS in ensuring the safety of its patrons at City parks. Currently there are two part-time sworn park rangers, however, the number of parks outweighs the ability of the two officers to effectively patrol all City parks and perform crime prevention successfully. Revenue generated from the additional sales tax allocated for Police will be placed in a special fund and may only be expended in accordance with the spending plans outlined below: Police Expenditure Plan: The projected revenue from the special sales tax, will be used to fund newly created positions within the Police Department. The additional tax revenue would enable the city to fund up to eight (8) additional police officers; one (1) part-time Youth Outreach Worker; and two (2) part-time sworn park rangers; along with necessary equipment, and department training. The revenue to be generated by the public safety tax measure is not intended to provide funding to offset the cost of current staffing levels, levels but rather to provide funding for additional officers and non -sworn staff while the City continues to fund established positions from the General Fund. The remaining estimated $152,193 will be used for officer safety equipment and staff training. Fire: A reduction in City revenue in 2009, forced the Lodi Fire Department to reduce expenditures by partially shutting down Fire Engine 1, located in the downtown district, covered by our Central Fire Station on Elm Street. Despite the cost savings, the "brown -out" of Fire Engine 1 has resulted in reduced firefighter staffing levels and has created service delivery impacts to the entire community. The browning -out of Engine 1 has negatively affected the fire department's ability to provide adequate fire and medical coverage for public safety services and hinders an effective response model, lowering firefighter safety and creating a void in fire response to downtown. An effective response model utilizes all available resources to their full capabilities, sending the closest appropriate fire apparatus to the emergency fire or medical call. The Fire Department is committed to providing the highest levels of service and returning Engine 1 to service will ensure we meet fire industry standards. The first priority with the dollars raised by the public safety tax measure will be to increase firefighter staffing to return downtown Engine 1 to service. The remainder of the revenue generated for fire from additional sales tax revenue, will be designated for department training, which was significantly reduced in 2009 and has not increased to pre -1998 levels. It is imperative for our firefighters to receive the necessary fire and medical training to continue to provide the highest level of quality emergency services to our citizens. To ensure the highest levels of public safety services and improve firefighter and community safety, the department follows national, state, OSHA, and NFPA mandated and recommended training standards. These standards include in-house training, education, and professional development programs encompassing everything from basic level firefighting techniques in the fire academy all the way to highly specialized categories of hazardous materials and technical rescue. With the increase in training, the Fire Department will be able to continue the development and delivery of proactive training and deploy programs to ensure we are able to meet and keep up with the ever-changing demographic needs of the community. The Fire Department staff strives to remain at the leading edge of the fire profession. Going beyond the minimum standards, and striving to exceed departmental expectations, can only occur with enhanced education and training programs. Revenue generated from the additional sales tax allocated for Fire will be placed in a special fund and may only be expended in accordance with the spending plans as outlined below: Fire Expenditure Plan: The estimated $1 million dollars that the Public Safety Tax Initiative will generate for the Lodi Fire Department will allow the City to fully staff Fire Engine 1. The department plans to utilize current overtime operating dollars of $592,860, with an estimated $798,929 coming from the public safety tax measure to staff Fire Engine 1, an estimated annual cost of $1,391,789. The Fire Department is recommending overtime in staffing Fire Engine 1 versus hiring additional full time employees because it will eliminate any long term commitment of the City and provide an overall costs savings by not having to purchase and maintain additional personal safety equipment or accrue the cost of retirement and health insurance benefits. In addition, revenue generated from the tax measure, would be used to address the total training needs of the department, including basic skills learned in the fire academy to specialized training for hazardous material, technical rescue, and professional development. FISCAL IMPACT: Annual revenue generated from the additional sales taxes is estimated to be $1,400,000 for Parks and $2,800,000 for Police and Fire (allocated 64 percent to Police and 36 percent to Fire). Revenue from each tax measure will be placed in special funds, and expenditures will be overseen by designated citizen oversight committees. Tod Patters Jeff Hood Attachments: 1. Special Tax Ordinance for Parks 2. Resolution for Parks Ballot Measure 3. Parks Spending Plan (FY 2017/18 — FY 2031/32) 4. Special Tax Ordinance for Public Safety 5. Resolution for Public Safety Ballot Measure 6. Public Safety Expenditure Plan Mich, City Attorney 00 ey, Fire C le ATTACHMENT 1 TO COUNCIL COMMUNICATION ORDINANCE NO. 2016 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI AMENDING LODI MUNICIPAL CODE TITLE 3 - REVENUE AND FINANCE BY ADDING CHAPTER 3.30 "SPECIAL TRANSACTION AND USE TAX FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES" IMPOSING A SPECIAL ONE- EIGHTH CENT PER DOLLAR (0.125%) TRANSACTIONS AND USE TAX FOR PARK REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES TO BE COLLECTED AND ADMINISTERED BY THE STATE BOARD OF EQUALIZATION SUBJECT TO VOTER APPROVAL The City Council of the City of Lodi hereby finds as follows: A. Additional revenue is necessary to fund park repairs, maintenance, and upgrades, including such items as reconstructing parking lots and roadways at Lodi Lake and other City parks; rehabilitating and building park trails; renovating playgrounds; replacing and installing drinking fountains and park furniture; improving water efficiency and making other park infrastructure improvements. B. The City's adopted budget for FY2016/17 is only able to provide for minimal funding for the repair and maintenance of City parks, and continues to defer capital investment needs. The City's financial forecast over the next five years continues to reflect a lack of resources available to address park repairs, maintenance, improvements, and upgrades. C. The City Council may propose that voters approve a special transactions and use tax (sales tax) to raise additional funds for park repairs, maintenance, and upgrades. D. A special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes. E. Pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two- thirds vote of all members of the City Council and the tax subsequently is approved by a two- thirds vote of qualified voters of the City voting in an election. F. A special transactions and use tax of one eighth of one percent (0.125%) will generate sufficient revenue to enable the City to begin addressing maintenance and repair work in City parks, and to make improvements, and upgrades to park amenities and park infrastructure throughout the City. The special tax would generate an estimated $1,400,000 in annual revenue and an estimated $21,000,000 over fifteen (15) years. G Government Code Section 53724(c) requires that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote. H. November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure. 1 NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF LODI: Section 1. Lodi Municipal Code Title 3 - Revenue and Finance is hereby amended by adding Chapter 3.30 "Special Transaction and Use Tax for Parks Repairs, Maintenance, Improvements, and Upgrades" and shall read as follows: CHAPTER 3.30 SPECIAL TRANSACTIONS AND USE TAX ORDINANCE FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES Sections: 3.30.010 Title 3.30.020 Operative Date 3.30.030 Purpose 3.30.040 Contract with State 3.30.050 Transaction Tax Rate 3.30.060 Place of Sale 3.30.070 Use Tax Rate 3.30.080 Termination Date 3.30.090 Adoption of Provisions and State Law 3.30.100 Limitations on Adoption of State Law and Collection of Use Taxes 3.30.110 Permit Not Required 3.30.120 Exemptions and Exclusions 3.30.130 Amendments 3.30.140 Enjoining Collection Forbidden 3.30.150 Refunds and Credits; Suits and Legal Proceedings 3.30.160 Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan 3.30.170 Establishment of Special Parks Sales Tax Oversight Committee 3.30.180 Annual Audit and Report 3.30.010 Title. This ordinance shall be known as the City of Lodi Special Transactions and Use Tax Ordinance for Parks Repairs, Maintenance, Improvements, and Upgrades. The City of Lodi hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 3.30.020 Operative Date. "Operative date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 3.30.030 Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.91 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if two-thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. 2 B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 3.40.040 Contract with State. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.30.050 Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-eighth percent (0.125%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 3.30.060 Place of Sale. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3.30.070 Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one-eighth cent (0.125%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. 3.30.080. Termination Date. The authority to levy the tax imposed by this ordinance shall expire on the fifteenth anniversary of the operative date, unless extended by a two-thirds majority vote of the voters of the City. 3 3.30.090 Adoption of Provisions of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 3.30.100. Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, Victim Compensation and Government Claims Board, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.30.110. Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 3.30.120. Exemptions and Exclusions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax levied by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state -administered transactions or use tax. 4 B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out -of -City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out -of -City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax levied by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state -administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, 5 the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.30.130. Amendments. A. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. B. Pursuant to Elections Code Section 9217 or any successor statute, the City Council may amend or repeal this ordinance and any of its exhibits, but not increase or extend the rate of tax levied herein, without a vote of the people. 6 3.30.140 Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.30.150. Refunds and Credits; Suits and Legal Proceedings. A. Refunds of and credits for any tax paid pursuant to this Chapter may be made only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. B. Suits and proceedings for the recovery of any amount alleged to have been erroneously or illegally determined or collected pursuant to this Chapter may be maintained in any court only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. A judgment shall not be rendered in favor of the plaintiff in any action brought against the State Board of Equalization to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount. 3.30.160. Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan. All proceeds of the special tax levied and imposed by this ordinance shall be accounted for and paid into a special fund or account designated for use by the City of Lodi only for parks services as set forth in the Parks Expenditure Plan for the administration and expenditure of the tax revenue, attached to this ordinance as Exhibit 1, and made a part hereof as though fully set forth herein. The Parks Expenditure Plan may be amended from time to time by a majority vote of the City Council, as long as the fund continues to be utilized for parks repairs, maintenance, and upgrades. No revenues collected pursuant to the tax levied by this ordinance may be spent on General Fund operating expenses in effect at the time this ordinance becomes effective, or projects that are not a part of the Parks Expenditure Plan. Revenues collected by this ordinance shall supplement, rather than replace, existing City expenditures for parks services as reflected in the FY 2016/2017 budget. 3.30.170 Establishment of Special Parks Sales Tax Oversight Committee. A. Committee Established. A Citizens' Oversight Committee is hereby established in the City of Lodi to monitor the expenditures of revenue collected pursuant to this Ordinance only and to report to the People and the City Council. B. Selection of Members. Members of the Citizens' Oversight Committee shall be appointed by the City Council. The Committee shall consist of five members. Members of the Citizens' Oversight Committee shall not be current City of Lodi employees, officials, contractors, or vendors of the City. Past employees, officials, contractors, and vendors shall be eligible to serve on the Committee, provided that there are no conflicts of interest as determined by the City Attorney. Of the members of the Committee first appointed, three members shall be appointed for terms of two years and two members shall be appointed for terms of three years. Their successors shall be appointed for terms of three years. No member may serve more than two consecutive three-year terms. The City Council shall solicit members of the Citizens' Oversight Committee, through an open application process that is promoted through the City's adopted recruiting process. Any resident of Lodi is eligible to apply for Committee membership, subject to the restrictions specified above. All applications will be reviewed by the City Council, 7 which will have the authority to make final decisions regarding Committee composition, subject to the guidelines in this Ordinance. C. Purposes and Jurisdiction. The Citizens' Oversight Committee shall conduct an annual review of expenditures of revenue collected pursuant to this Ordinance to determine whether such funds are expended for the purposes specified in the then current Parks Expenditure Plan. Committee members may review the annual financial audit performed by an independent auditor during the review process. The Citizens' Oversight Committee shall issue an annual report on their findings to the City Council and to the People. The Citizens' Oversight Committee annual report is subject to review and approval of the City Council. The Committee shall confine its review specifically to revenues generated pursuant to this Ordinance and the expenditure of those revenues. The Committee shall serve in an advisory -only role to the City Council. Committee members shall not play a formal or informal role in contracting, project management, or any other aspect of the parks repairs, maintenance and upgrades funded by this Ordinance. The Committee is not charged with decision-making on spending priorities; schedules; project details; funding source decisions; financing plans, including changes or revisions to the Parks Expenditure Plan; or tax rate assumptions. The Committee shall have no jurisdiction other than that delegated to it by the People pursuant to this Ordinance. The Lodi City Manager or the City Manager's designee shall provide reasonable administrative or technical assistance required by the Committee to fulfill its responsibilities or publicize its findings. D. Meetings. The Citizens' Oversight Committee shall meet annually with specific meeting dates to be determined by Committee members. Citizens' Oversight Committee meetings are subject to the Brown Act. Meetings must be noticed and open to the public. Committee minutes and reports are a matter of public record, and must be posted on a web site provided by the City. Additional meetings may be scheduled by the Committee as necessary. All Committee members shall attend a training and orientation session prior to the first regular Committee meeting. Committee members are expected to attend all regular meetings. Failure to attend two consecutive meetings may result in removal from the Committee at the discretion of the City Council. E. Committee Operations. The Citizens' Oversight Committee will select members to serve as Chair and Vice Chair of the Committee. A City staff person will be appointed by the City Manager, or the City Manager's designee, to serve as Secretary. The Secretary will be responsible for preparing, posting and distributing agendas and taking minutes at each meeting. Approved minutes shall be made available to the public. Committee decisions, positions, findings and procedures shall require a simple majority vote of those Committee members in attendance. The quorum requirement for any meeting shall be a minimum of three (3) members. F. Vacancies. Committee members may be removed from the Committee only by the City Council for repeated absences at committee meetings, malfeasance, failure to meet the qualifications set forth in this Section, or for inability or unwillingness to fulfill the duties of a Committee member. In the event of removal, resignation, or death, the City Council shall appoint a person to fill the vacant seat. G. Miscellaneous. Subject to the restrictions specifically addressed in this Section, the Committee may draft and adopt its own standard procedures and by-laws by majority vote. All Citizens' Oversight Committee procedures and by-laws remain subject to review and approval of the City Council. 8 3.30.180 Annual Audit and Report. A. The revenue from the tax imposed by this Chapter shall be subject to the annual audit performed by the City's independent auditor of the City's books, records, accounts, and fiscal procedures and which is reported in the City's Comprehensive Annual Financial Report. B. In addition to the annual audit, an Annual Review Report shall be prepared by the City, setting forth the amount of revenue received from the tax imposed by this Chapter, amount of disbursements, and description of expenditures. The purpose of the report is to assure accountability and the proper disbursement of the revenue from the tax imposed by this Chapter. The Annual Review Report shall be filed in the Office of the City Clerk not later than January 31st following the fiscal year in which the tax is collected. Section 2. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. Section 3. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council of the City of Lodi hereby declares that they would have adopted each and every provision of this ordinance regardless of the invalidity of any other provision. Section 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. Section 5. Compliance with the California Environmental Quality Act. The approval of this ordinance is exempt from the California Environmental Quality Act (Public Resources Code Sections 21000, et seq., "CEQA" and 14 Cal. Code of Regs. Sections 15000 et seq., "CEQA Guidelines"). This ordinance imposes a special sales tax that can be used for any legitimate governmental purposes as specified in this ordinance. It is not a commitment to any specific project that may result in a potentially significant physical impact on the environment. Section 6. Codification. Subject to the voter approval, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this ordinance in the Lodi Municipal Code. Section 7. Effective Date. If this ordinance is approved by two-thirds of the voters voting on the issue at the November 8, 2016 election, pursuant to Elections Code Section 9217, this ordinance shall become effective ten (10) days after the City Council declares the results of the election. Section 8. Certification and Publication. The City Clerk shall certify the final approval of this ordinance, publish the same as required by law, and forward a certified copy of the adopted ordinance to the State Board of Equalization. 9 Approved this day of July, 2016 MARK CHANDLER Mayor ATTEST: JENNIFER M. FERRAIOLO City Clerk State of California County of San Joaquin, ss. I, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance No. was introduced at a regular meeting of the City Council of the City of Lodi held July 6, 2016, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held July _, 2016, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — 1 further certify that Ordinance No. was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. pproved to Form: JANICE D. MAGDICH City Attorney 10 JENNIFER M. FERRAIOLO City Clerk EXHIBIT 1 TO ORDINANCE ADDING CHAPTER 3.30 "SPECIAL TRANSACTION AND USE TAX FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES" PARKS SPENDING PLAN Item# Parks spending plan: One-eighth cent, 15 years 1 Lodi Lake Park South Shore Reconstruction 2 Lodi Lake Erosion Control 3 Candy Cane Park Renovations 4 Legion Park improvements 5 Emerson Park playground renovations/field improvements 6 Lodi Lake Park North Side Playground 7 Lodi Lake Park North Pavement 8 Parks Annex roof replacement 9 Nature Area trail rehabilitation 10 Dog Park amenities 11 Beckman Park playground installation 12 Replaster Blakely Park pool/repairs 13 Lodi Lake Park South Shore Restroom replacement 14 Peterson Park upgrades 15 Salas Park sports lighting replacement 16 Henry Glaves Park playground replacement 17 English Oaks Common playground/picnic 18 Lodi Lake riverfront trail 19 Vinewood Park Restroom demo/replacement 20 Century Meadows Park playground surface 21 Lodi Lake Park Master Plan improvements TBD 22 Vinewood Park irrigation system upgrades 23 Hutchins Street Square Pool HVAC system 24 English Oaks downsize playground area, wall repair 25 Blakely Park aquatics restroom renovation/field repairs 26 Remove Lawrence Park restroom 27 Salas Park parking lot reconstruction 28 Kofu Park repairs 29 Softball Complex renovations 30 Replaster/mechanical replacement Lake wading pool 31 Beckman Park irrigation booster pump 32 Construct splash pad at location TBD 33 Zupo Field lighting replacement 34 Chapman Field repairs 35 Zupo Field seating repairs 36 Aquatic facility mechanical replacement 37 New playground at Borchardt and Vinewood parks 38 Beckman Park picnic shelter Century Park playground replacement 39 Replace Lodi Lake Park North restroom 40 Salas Park Playground replacement 41 Lawrence Park playground replacement 42 Peterson Park playground replacement 43 Zupo Field outfield turf renovations 44 Replace Emerson Park restrooms 45 Parks Mechanic shop improvements 46 Hale Park Community/Restroom renovations 47 Blakely Park playground/sports court replacement 48 Hale Park playground replacement 49 Century Meadows playground replacement 50 Replace Hutchins Street Square Pool liner 51 Hutchins Street Square playground replacement 52 Kofu Park restroom/concession renovations 53 Katzakian Park restroom/playground renovation 54 Van Buskirk Park playground replacement 55 Lawrence Park renovations, TBD 56 Hale Park parking lot reconstruction 57 Salas Park restroom renovations 58 Salas Park bleacher seating repairs 59 Replace worn playground apparatus/fall zones 60 Park furniture/shelter repairs & replacement 61 Replace/repair/install drinking fountains 62 Tree safety (pruning, removal) 63 Turf maintenance/repurpose 64 Grape Bowl improvements (set-aside) 65 Skate Park annual repairs 66 Park irrigation system repairs/upgrades 67 Parking lot maintenance/renovations (set-aside) 2017/18 2018/19 2019/20 2020/21 2021/22 $soo,000 $150,000 $1,000,000 $1,240,000 $115,000 $100,000 $175,000 $200,000 $750,000 $85,000 $180,000 $25,000 $200,000 $80,000 $400,000 $45,000 $300,000 $180,000 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 Project totals $800,000 $2,390,000 $115,000 $225,000 $325,000 $175,000 $350,000 $200,000 $750,000 $85,000 $180,000 $25,000 $200,000 $80,000 $160,000 $400,000 $45,000 $300,000 $225,000 $405,000 $245,000 $245,000 $675,000 $675,000 $255,000 $255,000 $55,000 $55,000 $500,000 $500,000 $500,000 $500,000 $2,000,000 $150,000 $150,000 $350,000 $350,000 $55,000 $55,000 $80,000 $405,000 $485,000 $10,000 $10,000 $500,000 $500,000 $142,000 $142,000 $575,000 $575,000 $20,000 $20,000 $60,000 $60,000 $200,000 $200,000 $150,000 $150,000 $160,000 $160,000 $450,000 $450,000 $40,000 $40,000 $200,000 $200,000 $400,000 $225,000 $225,000 $180,000 $180,000 $400,000 $400,000 $225,000 $225,000 $175,000 $175,000 $225,000 $225,000 $85,000 $85,000 $300,000 $300,000 $80,000 $80,000 $400,000 $400,000 $300,000 $300,000 $180,000 $180,000 $200,000 $200,000 $75,000 $75,000 $225,000 $225,000 $150,000 $150,000 $225,000 $225,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $35,000 $35,000 $30,000 $30,000 $30,000 $35,000 $40,000 $35,000 $40,000 $10,000 $35,000 $40,000 $35,000 $35,000 $35,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $75,000 $50,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $20,000 $20,000 $20,000 $20,000 $30,000 $20,000 $20,000 $40,000 $120,000 $115,000 $100,000 $120,000 $20,000 $20,000 $20,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $35,000 $25,000 $35,000 $15,000 $38,000 $10,000 $75,000 $100,000 $50,000 $55,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 so so so so $5,000 $75,000 $500,000 $150,000 $645,000 $705,000 $750,000 $75,000 $438,000 $300,000 Total $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $21,000,000 ATTACHMENT 2 TO COUNCIL COMMUNICATION RESOLUTION NO. 2016- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI, CALLING AN ELECTION TO ASK THE VOTERS OF THE CITY OF LODI TO APPROVE A SPECIAL TRANSACTIONS AND USE TAX OF ONE-EIGHTH CENT PER DOLLAR (0.125%) FOR FIFTEEN (15) YEARS, WITH THE TAX REVENUE TO BE USED EXCLUSIVELY FOR PARK REPAIRS, MAINTENANCE, MPROVEMENTS, AND UPGRADES, AND TO BE REVIEWED AND REPORTED ON BY AN INDEPENDENT CITIZENS OVERSIGHT COMMITTEE, AND REQUESTING THAT THE BOARD OF SUPERVISORS FOR THE COUNTY OF SAN JOAQUIN CONSOLIDATE THE ELECTION WITH THE ESTABLISHED GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2016, AND DIRECT THE COUNTY REGISTRAR OF VOTERSTO CONDUCT THE ELECTION ON THE CITY'S BEHALF WHEREAS, additional revenue is necessary to fund park repairs, maintenance, and upgrades, including such items as reconstructing parking lots and roadways at Lodi Lake and other City parks; rehabilitating and building trails; renovating playgrounds; replacing and installing drinking fountains and park furniture; improving water efficiency and making other park infrastructure improvements; WHEREAS, the City's adopted budget for FY2016/17 is only able to provide for minimal funding for the repair and maintenance of City parks, and continues to defer capital investment needs. The City's financial forecast over the next five years continues to reflect a lack of resources available to address park repairs, maintenance, improvements, and upgrades; WHEREAS, the City Council may propose that voters approve a special transactions and use tax to raise additional funds for park repairs, maintenance, and upgrades; WHEREAS, a special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes; WHEREAS, pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two-thirds vote of all members of the City Council and the tax subsequently is approved by a two-thirds vote of qualified voters of the City voting in an election; WHEREAS, a special transaction and use tax of one eighth of one percent (0.125%) per dollar would generate sufficient revenue to begin addressing maintenance and repair work in City parks, and to make improvements, and upgrades to park amenities and park infrastructure throughout the City. The special tax would generate an estimated $1,400,000 in annual revenue and an estimated $21,000,000 over fifteen (15) years; WHEREAS, Government Code Section 53724(c) require that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote; WHERAS, November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure; WHEREAS, the City Council of the City of Lodi desires to submit to the voters at the statewide general election to be held on Tuesday, November 8, 2016, an ordinance entitled "Special Transactions and Use Tax Ordinance for Parks Repairs, Maintenance, Improvements, and Upgrades"; and WHEREAS, the City Council is authorized and directed by statute to submit the ordinance to the voters. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LODI DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. That the foregoing recitals are true and correct and are hereby adopted by the City Council. SECTION 2. That pursuant to Government Code Section 53724(c) requiring that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote, there is called and ordered to be held in the City of Lodi, an election on Tuesday, November 8, 2016, for the purpose of submitting the following ordinance: Shall the City of Lodi replace outdated playgrounds, repair eroded riverbank at Lodi Lake, repair and expand park trail systems, replace park restrooms and drinking fountains, and improve park parking lots, roadways, landscaping, and infrastructure, by enacting a one-eighth cent per dollar (0.125%) transactions and use ("sales") tax, estimated to raise $1,400,000 annually, to sunset in fifteen (15) years, with all revenue exclusively applied to these specific purposes, subject to citizen oversight and annual audit? YES NO SECTION 3. That the text of the ordinance submitted to the voters is attached as Exhibit A, and made a part hereof as though fully set forth herein. SECTION 4. That the vote requirement for the ordinance to pass is an affirmative vote of two-thirds of the voters of the City casting votes. SECTION 5. That the ballots to be used at the election shall be in form and content as required by the laws of the State of California. SECTION 6. That the City Clerk is authorized, instructed and directed to coordinate with the San Joaquin County Registrar of Voters 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. The City will reimburse the County for the actual costs incurred by the County Elections Official in conducting the election. SECTION 7. The City Clerk is hereby authorized to cause notice of the ordinance to be published one in the Lodi News Sentinel in accordance with Elections Code section 12111 and Government Code section 6061. SECTION 8. The City Manager is authorized and directed to expend the necessary funds to pay for the City's cost of placing the ordinance on the election ballot. SECTION 9. That pursuant to Election Code section 10242, 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 8:00 o'clock p.m. of the same day when the polls shall be closed, except as provided in Elections Code section14401. SECTION 10. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by the laws of the State of California for holding municipal elections. SECTION 11. 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 the laws of the State of California. SECTION 12. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. SECTION 13. That the City Clerk is authorized to certify the adoption of this Resolution and transmit a certified copy to the San Joaquin County Board of Supervisors and the San Joaquin County Registrar of Voters. Dated: July 6, 2016 I hereby certify that Resolution No. 2016- was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 6, 2016, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — ATTEST. JENNIFER M. FERRAIOLO City Clerk (SEAL) pproved as to Form: c..____A MAGDICH City Attorney 2016 - MARK CHANDLER Mayor EXHIBIT A ORDINANCE NO. 2016 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI AMENDING LODI MUNICIPAL CODE TITLE 3 - REVENUE AND FINANCE BY ADDING CHAPTER 3.30 "SPECIAL TRANSACTION AND USE TAX FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES" IMPOSING A SPECIAL ONE- EIGHTH CENT PER DOLLAR (0.125%) TRANSACTIONS AND USE TAX FOR PARK REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES TO BE COLLECTED AND ADMINISTERED BY THE STATE BOARD OF EQUALIZATION SUBJECT TO VOTER APPROVAL The City Council of the City of Lodi hereby finds as follows: A. Additional revenue is necessary to fund park repairs, maintenance, and upgrades, including such items as reconstructing parking lots and roadways at Lodi Lake and other City parks; rehabilitating and building park trails; renovating playgrounds; replacing and installing drinking fountains and park furniture; improving water efficiency and making other park infrastructure improvements. B. The City's adopted budget for FY2016/17 is only able to provide for minimal funding for the repair and maintenance of City parks, and continues to defer capital investment needs. The City's financial forecast over the next five years continues to reflect a lack of resources available to address park repairs, maintenance, improvements, and upgrades. C. The City Council may propose that voters approve a special transactions and use tax (sales tax) to raise additional funds for park repairs, maintenance, and upgrades. D. A special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes. E. Pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two- thirds vote of all members of the City Council and the tax subsequently is approved by a two- thirds vote of qualified voters of the City voting in an election. F. A special transactions and use tax of one eighth of one percent (0.125%) will generate sufficient revenue to enable the City to begin addressing maintenance and repair work in City parks, and to make improvements, and upgrades to park amenities and park infrastructure throughout the City. The special tax would generate an estimated $1,400,000 in annual revenue and an estimated $21,000,000 over fifteen (15) years. G Government Code Section 53724(c) requires that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote. H. November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure. 1 NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF LODI: Section 1. Lodi Municipal Code Title 3 - Revenue and Finance is hereby amended by adding Chapter 3.30 "Special Transaction and Use Tax for Parks Repairs, Maintenance, Improvements, and Upgrades" and shall read as follows: CHAPTER 3.30 SPECIAL TRANSACTIONS AND USE TAX ORDINANCE FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES Sections: 3.30.010 Title 3.30.020 Operative Date 3.30.030 Purpose 3.30.040 Contract with State 3.30.050 Transaction Tax Rate 3.30.060 Place of Sale 3.30.070 Use Tax Rate 3.30.080 Termination Date 3.30.090 Adoption of Provisions and State Law 3.30.100 Limitations on Adoption of State Law and Collection of Use Taxes 3.30.110 Permit Not Required 3.30.120 Exemptions and Exclusions 3.30.130 Amendments 3.30.140 Enjoining Collection Forbidden 3.30.150 Refunds and Credits; Suits and Legal Proceedings 3.30.160 Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan 3.30.170 Establishment of Special Parks Sales Tax Oversight Committee 3.30.180 Annual Audit and Report 3.30.010 Title. This ordinance shall be known as the City of Lodi Special Transactions and Use Tax Ordinance for Parks Repairs, Maintenance, Improvements, and Upgrades. The City of Lodi hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 3.30.020 Operative Date. "Operative date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 3.30.030 Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.91 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if two-thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. 2 B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 3.40.040 Contract with State. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.30.050 Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-eighth percent (0.125%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 3.30.060 Place of Sale. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3.30.070 Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one-eighth cent (0.125%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. 3.30.080. Termination Date. The authority to levy the tax imposed by this ordinance shall expire on the fifteenth anniversary of the operative date, unless extended by a two-thirds majority vote of the voters of the City. 3 3.30.090 Adoption of Provisions of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 3.30.100. Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, Victim Compensation and Government Claims Board, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.30.110. Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 3.30.120. Exemptions and Exclusions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax levied by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state -administered transactions or use tax. 4 B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out -of -City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out -of -City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax levied by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state -administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, 5 the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.30.130. Amendments. A. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. B. Pursuant to Elections Code Section 9217 or any successor statute, the City Council may amend or repeal this ordinance and any of its exhibits, but not increase or extend the rate of tax levied herein, without a vote of the people. 6 3.30.140 Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.30.150. Refunds and Credits; Suits and Legal Proceedings. A. Refunds of and credits for any tax paid pursuant to this Chapter may be made only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. B. Suits and proceedings for the recovery of any amount alleged to have been erroneously or illegally determined or collected pursuant to this Chapter may be maintained in any court only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. A judgment shall not be rendered in favor of the plaintiff in any action brought against the State Board of Equalization to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount. 3.30.160. Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan. All proceeds of the special tax levied and imposed by this ordinance shall be accounted for and paid into a special fund or account designated for use by the City of Lodi only for parks services as set forth in the Parks Expenditure Plan for the administration and expenditure of the tax revenue, attached to this ordinance as Exhibit 1, and made a part hereof as though fully set forth herein. The Parks Expenditure Plan may be amended from time to time by a majority vote of the City Council, as long as the fund continues to be utilized for parks repairs, maintenance, and upgrades. No revenues collected pursuant to the tax levied by this ordinance may be spent on General Fund operating expenses in effect at the time this ordinance becomes effective, or projects that are not a part of the Parks Expenditure Plan. Revenues collected by this ordinance shall supplement, rather than replace, existing City expenditures for parks services as reflected in the FY 2016/2017 budget. 3.30.170 Establishment of Special Parks Sales Tax Oversight Committee. A. Committee Established. A Citizens' Oversight Committee is hereby established in the City of Lodi to monitor the expenditures of revenue collected pursuant to this Ordinance only and to report to the People and the City Council. B. Selection of Members. Members of the Citizens' Oversight Committee shall be appointed by the City Council. The Committee shall consist of five members. Members of the Citizens' Oversight Committee shall not be current City of Lodi employees, officials, contractors, or vendors of the City. Past employees, officials, contractors, and vendors shall be eligible to serve on the Committee, provided that there are no conflicts of interest as determined by the City Attorney. Of the members of the Committee first appointed, three members shall be appointed for terms of two years and two members shall be appointed for terms of three years. Their successors shall be appointed for terms of three years. No member may serve more than two consecutive three-year terms. The City Council shall solicit members of the Citizens' Oversight Committee, through an open application process that is promoted through the City's adopted recruiting process. Any resident of Lodi is eligible to apply for Committee membership, subject to the restrictions specified above. All applications will be reviewed by the City Council, 7 which will have the authority to make final decisions regarding Committee composition, subject to the guidelines in this Ordinance. C. Purposes and Jurisdiction. The Citizens' Oversight Committee shall conduct an annual review of expenditures of revenue collected pursuant to this Ordinance to determine whether such funds are expended for the purposes specified in the then current Parks Expenditure Plan. Committee members may review the annual financial audit performed by an independent auditor during the review process. The Citizens' Oversight Committee shall issue an annual report on their findings to the City Council and to the People. The Citizens' Oversight Committee annual report is subject to review and approval of the City Council. The Committee shall confine its review specifically to revenues generated pursuant to this Ordinance and the expenditure of those revenues. The Committee shall serve in an advisory -only role to the City Council. Committee members shall not play a formal or informal role in contracting, project management, or any other aspect of the parks repairs, maintenance and upgrades funded by this Ordinance. The Committee is not charged with decision-making on spending priorities; schedules; project details; funding source decisions; financing plans, including changes or revisions to the Parks Expenditure Plan; or tax rate assumptions. The Committee shall have no jurisdiction other than that delegated to it by the People pursuant to this Ordinance. The Lodi City Manager or the City Manager's designee shall provide reasonable administrative or technical assistance required by the Committee to fulfill its responsibilities or publicize its findings. D. Meetings. The Citizens' Oversight Committee shall meet annually with specific meeting dates to be determined by Committee members. Citizens' Oversight Committee meetings are subject to the Brown Act. Meetings must be noticed and open to the public. Committee minutes and reports are a matter of public record, and must be posted on a web site provided by the City. Additional meetings may be scheduled by the Committee as necessary. All Committee members shall attend a training and orientation session prior to the first regular Committee meeting. Committee members are expected to attend all regular meetings. Failure to attend two consecutive meetings may result in removal from the Committee at the discretion of the City Council. E. Committee Operations. The Citizens' Oversight Committee will select members to serve as Chair and Vice Chair of the Committee. A City staff person will be appointed by the City Manager, or the City Manager's designee, to serve as Secretary. The Secretary will be responsible for preparing, posting and distributing agendas and taking minutes at each meeting. Approved minutes shall be made available to the public. Committee decisions, positions, findings and procedures shall require a simple majority vote of those Committee members in attendance. The quorum requirement for any meeting shall be a minimum of three (3) members. F. Vacancies. Committee members may be removed from the Committee only by the City Council for repeated absences at committee meetings, malfeasance, failure to meet the qualifications set forth in this Section, or for inability or unwillingness to fulfill the duties of a Committee member. In the event of removal, resignation, or death, the City Council shall appoint a person to fill the vacant seat. G. Miscellaneous. Subject to the restrictions specifically addressed in this Section, the Committee may draft and adopt its own standard procedures and by-laws by majority vote. All Citizens' Oversight Committee procedures and by-laws remain subject to review and approval of the City Council. 8 3.30.180 Annual Audit and Report. A. The revenue from the tax imposed by this Chapter shall be subject to the annual audit performed by the City's independent auditor of the City's books, records, accounts, and fiscal procedures and which is reported in the City's Comprehensive Annual Financial Report. B. In addition to the annual audit, an Annual Review Report shall be prepared by the City, setting forth the amount of revenue received from the tax imposed by this Chapter, amount of disbursements, and description of expenditures. The purpose of the report is to assure accountability and the proper disbursement of the revenue from the tax imposed by this Chapter. The Annual Review Report shall be filed in the Office of the City Clerk not later than January 31st following the fiscal year in which the tax is collected. Section 2. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. Section 3. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council of the City of Lodi hereby declares that they would have adopted each and every provision of this ordinance regardless of the invalidity of any other provision. Section 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. Section 5. Compliance with the California Environmental Quality Act. The approval of this ordinance is exempt from the California Environmental Quality Act (Public Resources Code Sections 21000, et seq., "CEQA" and 14 Cal. Code of Regs. Sections 15000 et seq., "CEQA Guidelines"). This ordinance imposes a special sales tax that can be used for any legitimate governmental purposes as specified in this ordinance. It is not a commitment to any specific project that may result in a potentially significant physical impact on the environment. Section 6. Codification. Subject to the voter approval, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this ordinance in the Lodi Municipal Code. Section 7. Effective Date. If this ordinance is approved by two-thirds of the voters voting on the issue at the November 8, 2016 election, pursuant to Elections Code Section 9217, this ordinance shall become effective ten (10) days after the City Council declares the results of the election. Section 8. Certification and Publication. The City Clerk shall certify the final approval of this ordinance, publish the same as required by law, and forward a certified copy of the adopted ordinance to the State Board of Equalization. 9 Approved this day of July, 2016 MARK CHANDLER Mayor ATTEST: JENNIFER M. FERRAIOLO City Clerk State of California County of San Joaquin, ss. I, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance No. was introduced at a regular meeting of the City Council of the City of Lodi held July 6, 2016, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held July , 2016, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — I further certify that Ordinance No. was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. Approved to Form: JANICE D. MAGDICH City Attorney 10 JENNIFER M. FERRAIOLO City Clerk EXHIBIT 1 TO ORDINANCE ADDING CHAPTER 3.30 "SPECIAL TRANSACTION AND USE TAX FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES" PARKS SPENDING PLAN Item# Parks spending plan: One-eighth cent, 15 years 1 Lodi Lake Park South Shore Reconstruction 2 Lodi Lake Erosion Control 3 Candy Cane Park Renovations 4 Legion Park improvements 5 Emerson Park playground renovations/field improvements 6 Lodi Lake Park North Side Playground 7 Lodi Lake Park North Pavement 8 Parks Annex roof replacement 9 Nature Area trail rehabilitation 10 Dog Park amenities 11 Beckman Park playground installation 12 Replaster Blakely Park pool/repairs 13 Lodi Lake Park South Shore Restroom replacement 14 Peterson Park upgrades 15 Salas Park sports lighting replacement 16 Henry Glaves Park playground replacement 17 English Oaks Common playground/picnic 18 Lodi Lake riverfront trail 19 Vinewood Park Restroom demo/replacement 20 Century Meadows Park playground surface 21 Lodi Lake Park Master Plan improvements TBD 22 Vinewood Park irrigation system upgrades 23 Hutchins Street Square Pool HVAC system 24 English Oaks downsize playground area, wall repair 25 Blakely Park aquatics restroom renovation/field repairs 26 Remove Lawrence Park restroom 27 Salas Park parking lot reconstruction 28 Kofu Park repairs 29 Softball Complex renovations 30 Replaster/mechanical replacement Lake wading pool 31 Beckman Park irrigation booster pump 32 Construct splash pad at location TBD 33 Zupo Field lighting replacement 34 Chapman Field repairs 35 Zupo Field seating repairs 36 Aquatic facility mechanical replacement 37 New playground at Borchardt and Vinewood parks 38 Beckman Park picnic shelter Century Park playground replacement 39 Replace Lodi Lake Park North restroom 40 Salas Park Playground replacement 41 Lawrence Park playground replacement 42 Peterson Park playground replacement 43 Zupo Field outfield turf renovations 44 Replace Emerson Park restrooms 45 Parks Mechanic shop improvements 46 Hale Park Community/Restroom renovations 47 Blakely Park playground/sports court replacement 48 Hale Park playground replacement 49 Century Meadows playground replacement 50 Replace Hutchins Street Square Pool liner 51 Hutchins Street Square playground replacement 52 Kofu Park restroom/concession renovations 53 Katzakian Park restroom/playground renovation 54 Van Buskirk Park playground replacement 55 Lawrence Park renovations, TBD 56 Hale Park parking lot reconstruction 57 Salas Park restroom renovations 58 Salas Park bleacher seating repairs 59 Replace worn playground apparatus/fall zones 60 Park furniture/shelter repairs & replacement 61 Replace/repair/install drinking fountains 62 Tree safety (pruning, removal) 63 Turf maintenance/repurpose 64 Grape Bowl improvements (set-aside) 65 Skate Park annual repairs 66 Park irrigation system repairs/upgrades 67 Parking lot maintenance/renovations (set-aside) 2017/18 2018/19 2019/20 2020/21 2021/22 $soo,000 $150,000 $1,000,000 $1,240,000 $115,000 $100,000 $175,000 $200,000 $750,000 $85,000 $180,000 $25,000 $200,000 $80,000 $400,000 $45,000 $300,000 $180,000 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 Project totals $800,000 $2,390,000 $115,000 $225,000 $325,000 $175,000 $350,000 $200,000 $750,000 $85,000 $180,000 $25,000 $200,000 $80,000 $160,000 $400,000 $45,000 $300,000 $225,000 $405,000 $245,000 $245,000 $675,000 $675,000 $255,000 $255,000 $55,000 $55,000 $500,000 $500,000 $500,000 $500,000 $2,000,000 $150,000 $150,000 $350,000 $350,000 $55,000 $55,000 $80,000 $405,000 $485,000 $10,000 $10,000 $500,000 $500,000 $142,000 $142,000 $575,000 $575,000 $20,000 $20,000 $60,000 $60,000 $200,000 $200,000 $150,000 $150,000 $160,000 $160,000 $450,000 $450,000 $40,000 $40,000 $200,000 $200,000 $400,000 $225,000 $225,000 $180,000 $180,000 $400,000 $400,000 $225,000 $225,000 $175,000 $175,000 $225,000 $225,000 $85,000 $85,000 $300,000 $300,000 $80,000 $80,000 $400,000 $400,000 $300,000 $300,000 $180,000 $180,000 $200,000 $200,000 $75,000 $75,000 $225,000 $225,000 $150,000 $150,000 $225,000 $225,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $35,000 $35,000 $30,000 $30,000 $30,000 $35,000 $40,000 $35,000 $40,000 $10,000 $35,000 $40,000 $35,000 $35,000 $35,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $75,000 $50,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $20,000 $20,000 $20,000 $20,000 $30,000 $20,000 $20,000 $40,000 $120,000 $115,000 $100,000 $120,000 $20,000 $20,000 $20,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $35,000 $25,000 $35,000 $15,000 $38,000 $10,000 $75,000 $100,000 $50,000 $55,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 so so so so $5,000 $75,000 $500,000 $150,000 $645,000 $705,000 $750,000 $75,000 $438,000 $300,000 Total $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $21,000,000 ATTACHMENT 3 TO COUNCIL COMMUNICATION Item# Parks spending plan: One-eighth cent, 15 years 1 Lodi Lake Park South Shore Reconstruction 2 Lodi Lake Erosion Control 3 Candy Cane Park Renovations 4 Legion Park improvements 5 Emerson Park playground renovations/field improvements 6 Lodi Lake Park North Side Playground 7 Lodi Lake Park North Pavement 8 Parks Annex roof replacement 9 Nature Area trail rehabilitation 10 Dog Park amenities 11 Beckman Park playground installation 12 Replaster Blakely Park pool/repairs 13 Lodi Lake Park South Shore Restroom replacement 14 Peterson Park upgrades 15 Salas Park sports lighting replacement 16 Henry Glaves Park playground replacement 17 English Oaks Common playground/picnic 18 Lodi Lake riverfront trail 19 Vinewood Park Restroom demo/replacement 20 Century Meadows Park playground surface 21 Lodi Lake Park Master Plan improvements TBD 22 Vinewood Park irrigation system upgrades 23 Hutchins Street Square Pool HVAC system 24 English Oaks downsize playground area, wall repair 25 Blakely Park aquatics restroom renovation/field repairs 26 Remove Lawrence Park restroom 27 Salas Park parking lot reconstruction 28 Kofu Park repairs 29 Softball Complex renovations 30 Replaster/mechanical replacement Lake wading pool 31 Beckman Park irrigation booster pump 32 Construct splash pad at location TBD 33 Zupo Field lighting replacement 34 Chapman Field repairs 35 Zupo Field seating repairs 36 Aquatic facility mechanical replacement 37 New playground at Borchardt and Vinewood parks 38 Beckman Park picnic shelter Century Park playground replacement 39 Replace Lodi Lake Park North restroom 40 Salas Park Playground replacement 41 Lawrence Park playground replacement 42 Peterson Park playground replacement 43 Zupo Field outfield turf renovations 44 Replace Emerson Park restrooms 45 Parks Mechanic shop improvements 46 Hale Park Community/Restroom renovations 47 Blakely Park playground/sports court replacement 48 Hale Park playground replacement 49 Century Meadows playground replacement 50 Replace Hutchins Street Square Pool liner 51 Hutchins Street Square playground replacement 52 Kofu Park restroom/concession renovations 53 Katzakian Park restroom/playground renovation 54 Van Buskirk Park playground replacement 55 Lawrence Park renovations, TBD 56 Hale Park parking lot reconstruction 57 Salas Park restroom renovations 58 Salas Park bleacher seating repairs 59 Replace worn playground apparatus/fall zones 60 Park furniture/shelter repairs & replacement 61 Replace/repair/install drinking fountains 62 Tree safety (pruning, removal) 63 Turf maintenance/repurpose 64 Grape Bowl improvements (set-aside) 65 Skate Park annual repairs 66 Park irrigation system repairs/upgrades 67 Parking lot maintenance/renovations (set-aside) 2017/18 2018/19 2019/20 2020/21 2021/22 $soo,000 $150,000 $1,000,000 $1,240,000 $115,000 $100,000 $175,000 $200,000 $750,000 $85,000 $180,000 $25,000 $200,000 $80,000 $400,000 $45,000 $300,000 $180,000 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 Project totals $800,000 $2,390,000 $115,000 $225,000 $325,000 $175,000 $350,000 $200,000 $750,000 $85,000 $180,000 $25,000 $200,000 $80,000 $160,000 $400,000 $45,000 $300,000 $225,000 $405,000 $245,000 $245,000 $675,000 $675,000 $255,000 $255,000 $55,000 $55,000 $500,000 $500,000 $500,000 $500,000 $2,000,000 $150,000 $150,000 $350,000 $350,000 $55,000 $55,000 $80,000 $405,000 $485,000 $10,000 $10,000 $500,000 $500,000 $142,000 $142,000 $575,000 $575,000 $20,000 $20,000 $60,000 $60,000 $200,000 $200,000 $150,000 $150,000 $160,000 $160,000 $450,000 $450,000 $40,000 $40,000 $200,000 $200,000 $400,000 $225,000 $225,000 $180,000 $180,000 $400,000 $400,000 $225,000 $225,000 $175,000 $175,000 $225,000 $225,000 $85,000 $85,000 $300,000 $300,000 $80,000 $80,000 $400,000 $400,000 $300,000 $300,000 $180,000 $180,000 $200,000 $200,000 $75,000 $75,000 $225,000 $225,000 $150,000 $150,000 $225,000 $225,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $35,000 $35,000 $30,000 $30,000 $30,000 $35,000 $40,000 $35,000 $40,000 $10,000 $35,000 $40,000 $35,000 $35,000 $35,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $75,000 $50,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $20,000 $20,000 $20,000 $20,000 $30,000 $20,000 $20,000 $40,000 $120,000 $115,000 $100,000 $120,000 $20,000 $20,000 $20,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $35,000 $25,000 $35,000 $15,000 $38,000 $10,000 $75,000 $100,000 $50,000 $55,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 so so so so $5,000 $75,000 $500,000 $150,000 $645,000 $705,000 $750,000 $75,000 $438,000 $300,000 Total $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $21,000,000 ATTACHMENT 4 TO COUNCIL COMMUNICATION ORDINANCE NO. 2016 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI AMENDING LODI MUNICIPAL CODE TITLE 3 - REVENUE AND FINANCE BY ADDING CHAPTER 3.40 "SPECIAL TRANSACTION AND USE TAX FOR PUBLIC SAFETY" IMPOSING A SPECIAL ONE- QUARTER CENT PER DOLLAR (0.25%) TRANSACTIONS AND USE TAX TO INCREASE STAFFING FOR POLICE AND FIRE AND ENHANCE TRAINING FOR PUBLIC SAFETY PERSONNEL, TO BE COLLECTED AND ADMINISTERED BY THE STATE BOARD OF EQUALIZATION SUBJECT TO VOTER APPROVAL The City Council of the City of Lodi hereby finds as follows: A. Additional revenue is necessary to increase the number of sworn Lodi police officers to reduce crime and public nuisances associated with the effects of Assembly Bill 109 (Public Safety Realignment) and other criminal activity within the City, as well as increase fire staffing levels to bring downtown Fire Engine 1 back into service, and enhance the training of public safety (police and fire) personnel. B. The City's adopted budget for FY2016/17 does not have revenue sufficient to increase staffing levels within the police and fire departments or fund advanced training for public safety personnel. The City's financial forecast over the next five years continues to reflect a lack of resources available to increase public safety staffing levels or increase the training budget for public safety personnel. C. The City Council may propose that voters approve special transactions and use tax (sales tax) to raise additional funds to increase the number of sworn police officers, hire an additional part-time youth outreach worker to conduct gang intervention and prevention, increase fire staffing levels to put downtown Fire Engine 1 into service, as well to enhance the training of public safety personnel. D. A special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes. E. Pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one-eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two- thirds vote of all members of the City Council and the tax subsequently is approved by a two- thirds vote of qualified voters of the City voting in an election. F. A special transactions and use tax of one-quarter of one percent (0.25%) would generate sufficient revenue to increase the number of police officers, fund their safety equipment, and hire a part-time youth outreach worker to conduct gang intervention and prevention. In addition, downtown Fire Engine 1 could be returned to service by increasing staffing, and provide advance training to public safety personnel. The special tax would generate an estimated $2,800,000 in additional revenue annually, assuming taxable sales continue at their estimated rate, to be distributed 64% to Police (an estimated $1,792,000 per year) and 36% to Fire (an estimated $1,008,000 per year), (cumulatively, an estimated $26,880,000 to Police and $15,120,000 to Fire over fifteen years). 1 G. Government Code Section 53724(c) requires that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote. H. November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure. NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF LODI: Section 1. Lodi Municipal Code Title 3 - Revenue and Finance is hereby amended by adding Chapter 3.40 "Special Transaction and Use Tax for Public Safety" and shall read as follows: CHAPTER 3.40 SPECIAL TRANSACTIONS AND USE TAX ORDINANCE FOR PUBLIC SAFETY Sections: 3.40.010 Title 3.40.020 Operative Date 3.40.030 Purpose 3.40.040 Contract with State 3.40.050 Transaction Tax Rate 3.40.060 Place of Sale 3.40.070 Use Tax Rate 3.40.080 Termination Date 3.40.090 Adoption of Provisions and State Law 3.40.100 Limitations on Adoption of State Law and Collection of Use Taxes 3.40.110 Permit Not Required 3.40.120 Exemptions and Exclusions 3.40.130 Amendments 3.40.140 Enjoining Collection Forbidden 3.40.150 Refunds and Credits; Suits and Legal Proceedings 3.40.160 Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan 3.40.170 Establishment of Special Public Safety Sales Tax Oversight Committee 3.40.180 Annual Audit and Report 3.40.010 Title. This ordinance shall be known as the City of Lodi Special Transactions and Use Tax Ordinance for Public Safety. The City of Lodi hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 3.40.020 Operative Date. "Operative date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 3.40.030 Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and 2 Section 7285.91 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if two-thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 3.40.040 Contract with State. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.40.050 Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-quarter percent (0.25%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 3.40.060 Place of Sale. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3.40.070 Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one-quarter cent (0.25%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. 3 3.40.080. Termination Date. The authority to levy the tax imposed by this ordinance shall expire on the fifteenth anniversary of the operative date, unless extended by a two-thirds majority vote of the voters of the City. 3.40.090 Adoption of Provisions of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 3.40.100. Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, Victim Compensation and Government Claims Board, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.40.110. Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 4 3.40.120. Exemptions and Exclusions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax levied by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state -administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out -of -City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out -of -City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax levied by this ordinance, the storage, use or other consumption in this City of tangible personal property: 5 1. The gross receipts from the sale of which have been subject to a transactions tax under any state -administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.40.130. Amendments. A. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall 6 automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. B. Pursuant to Elections Code Section 9217 or any successor statute, the City Council may amend or repeal this ordinance and any of its exhibits, but not increase or extend the rate of tax levied herein, without a vote of the people. 3.40.140 Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.40.150. Refunds and Credits; Suits and Legal Proceedings. A. Refunds of and credits for any tax paid pursuant to this Chapter may be made only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. B. Suits and proceedings for the recovery of any amount alleged to have been erroneously or illegally determined or collected pursuant to this Chapter may be maintained in any court only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. A judgment shall not be rendered in favor of the plaintiff in any action brought against the State Board of Equalization to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount. 3.40.160. Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan. All proceeds of the special tax levied and imposed by this ordinance shall be accounted for and paid into a special fund or account designated for use by the City of Lodi only for public safety as set forth in the Public Safety Expenditure Plan for the administration and expenditure of the tax revenue, attached to this ordinance as Exhibit 1, and made a part hereof as though fully set forth herein. The Public Safety Expenditure Plan may be amended from time to time by a majority vote of the City Council, as long as the fund continues to be used for public safety. No revenues collected pursuant to the tax levied by this ordinance may be spent on General Fund operating expenses in effect at the time this ordinance becomes effective, or projects that are not a part of the Public Safety Expenditure Plan, absent a corresponding decline in General Fund revenues or increase in non -discretionary General Fund expenses ("Financial Contingencies"). However, revenues may be spent on staffing in excess of those the General Fund can support in the event of Financial Contingencies. Revenues collected by this ordinance shall supplement, rather than replace, existing City expenditures for public safety (police and fire) as reflected in the FY 2016/2017 budget, absent a corresponding decline in General Fund revenues or increase in non -discretionary General Fund expenses. 3.40.170 Establishment of Special Public Safety Sales Tax Oversight Committee. A. Committee Established. A Citizens' Oversight Committee is hereby established in the City of Lodi to monitor the expenditures of revenue collected pursuant to this Ordinance only and to report to the People and the City Council. 7 B. Selection of Members. Members of the Citizens' Oversight Committee shall be appointed by the City Council. The Committee shall consist of five members. Members of the Citizens' Oversight Committee shall not be current City of Lodi employees, officials, contractors, or vendors of the City. Past employees, officials, contractors, and vendors shall be eligible to serve on the Committee, provided that there are no conflicts of interest as determined by the City Attorney. Of the members of the Committee first appointed, three members shall be appointed for terms of two years and two members shall be appointed for terms of three years. Their successors shall be appointed for terms of three years. No member may serve more than two consecutive three-year terms. The City Council shall solicit members of the Citizens' Oversight Committee, through an open application process that is promoted through the City's adopted recruiting process. Any resident of Lodi is eligible to apply for Committee membership, subject to the restrictions specified above. All applications will be reviewed by the City Council, which will have the authority to make final decisions regarding Committee composition, subject to the guidelines in this Ordinance. C. Purposes and Jurisdiction. The Citizens' Oversight Committee shall conduct an annual review of expenditures of revenue collected pursuant to this Ordinance to determine whether such funds are expended for the purposes specified in the then current Public Safety Expenditure Plan. Committee members may review the annual financial audit performed by an independent auditor during the review process. The Citizens' Oversight Committee shall issue an annual report on their findings to the City Council and to the people. The Citizens' Oversight Committee annual report is subject to review and approval of the City Council. The Committee shall confine its review specifically to revenues generated pursuant to this ordinance and the expenditure of those revenues. The Committee shall serve in an advisory -only role to the City Council. Committee members shall not play a formal or informal role in the hiring, retention, or training of public safety personnel funded by this ordinance. The Committee is not charged with decision-making on spending priorities; schedules; staffing levels; funding source decisions; financing plans, including changes or revisions to the Public Safety Expenditure Plan; or tax rate assumptions. The Committee shall have no jurisdiction other than that delegated to it by the people pursuant to this ordinance. The Lodi City Manager or the City Manager's designee shall provide reasonable administrative or technical assistance required by the Committee to fulfill its responsibilities or publicize its findings. D. Meetings. The Citizens' Oversight Committee shall meet annually with specific meeting dates to be determined by Committee members. Citizens' Oversight Committee meetings are subject to the Brown Act. Meetings must be noticed and open to the public. Committee minutes and reports are a matter of public record, and must be posted on a web site provided by the City. Additional meetings may be scheduled by the Committee as necessary. All Committee members shall attend a training and orientation session prior to the first regular Committee meeting. Committee members are expected to attend all regular meetings. Failure to attend two consecutive meetings may result in removal from the Committee at the discretion of the City Council. E. Committee Operations. The Citizens' Oversight Committee will select members to serve as Chair and Vice Chair of the Committee. A City staff person will be appointed by the City Manager, or the City Manager's designee, to serve as Secretary. The Secretary will be responsible for preparing, posting and distributing agendas and taking minutes at each meeting. Approved minutes shall be made available to the public. Committee decisions, positions, findings and procedures shall require a simple majority vote of those Committee members in attendance. The quorum requirement for any meeting shall be a minimum of three (3) members. F. Vacancies. Committee members may be removed from the Committee only by the City Council for repeated absences at committee meetings, malfeasance, failure to meet the 8 qualifications set forth in this Section, or for inability or unwillingness to fulfill the duties of a Committee member. In the event of removal, resignation, or death, the City Council shall appoint a person to fill the vacant seat. G. Miscellaneous. Subject to the restrictions specifically addressed in this Section, the Committee may draft and adopt its own standard procedures and by-laws by majority vote. All Citizens' Oversight Committee procedures and by-laws remain subject to review and approval of the City Council. 3.40.180 Annual Audit and Report. A. The revenue from the tax imposed by this Chapter shall be subject to the annual audit performed by the City's independent auditor of the City's books, records, accounts, and fiscal procedures and which is reported in the City's Comprehensive Annual Financial Report. B. In addition to the annual audit, an Annual Review Report shall be prepared by the City, setting forth the amount of revenue received from the tax imposed by this Chapter, amount of disbursements, and description of expenditures. The purpose of the report is to assure accountability and the proper disbursement of the revenue from the tax imposed by this Chapter. The Annual Review Report shall be filed in the Office of the City Clerk not later than January 31St following the fiscal year in which the tax is collected. Section 2. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. Section 3. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council of the City of Lodi hereby declares that they would have adopted each and every provision of this ordinance regardless of the invalidity of any other provision. Section 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. Section 5. Compliance with the California Environmental Quality Act. The approval of this ordinance is exempt from the California Environmental Quality Act (Public Resources Code Sections 21000, et seq., "CEQA" and 14 Cal. Code of Regs. Sections 15000 et seq., "CEQA Guidelines"). This ordinance imposes a special sales tax that can be used for any legitimate governmental purposes as specified in this ordinance. It is not a commitment to any specific project that may result in a potentially significant physical impact on the environment. Section 6. Codification. Subject to the voter approval, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this ordinance in the Lodi Municipal Code. Section 7. Effective Date. If this ordinance is approved by two-thirds of the voters voting on the issue at the November 8, 2016 election, pursuant to Elections Code Section 9217, this 9 ordinance shall become effective ten (10) days after the City Council declares the results of the election. Section 8. Certification and Publication. The City Clerk shall certify the final approval of this ordinance, publish the same as required by law, and forward a certified copy of the adopted ordinance to the State Board of Equalization. Approved this day of July, 2016 MARK CHANDLER Mayor ATTEST: JENNIFER M. FERRAIOLO City Clerk State of California County of San Joaquin, ss. I, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance No. was introduced at a regular meeting of the City Council of the City of Lodi held July 6, 2016, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held July _, 2016, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — 1 further certify that Ordinance No. was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. roved to Form: r JANICE D. MAGDICH City Attorney 10 JENNIFER M. FERRAIOLO City Clerk Exhibit 1 Public Safety Expenditure Plan The Public Safety sales tax is estimated to generate approximately $2,800,000 annually for a 15 year period. Revenue will be split 64% ($1,792,000) to Police and 36% ($1,008,000) to Fire. Estimated annual expenditures for each department are shown below. Police (64% of additional sales tax revenue) • Fund up to eight (8) additional sworn officers o Estimated cost FY 2016/17 - $1,376,072 (8 positions) • Fund up to two (2) part-time park rangers (sworn positions) o Estimated cost FY 2016/17 - $59,830 (2 positions) • Fund one (1) part-time Youth Outreach Coordinator o Estimated cost FY 2016/17 - $31,509 • Fund equipment for up to 10 sworn officers o Estimated cost FY 2016/17 - $107,750 • Balance of funds to be used for training of police personnel Fire (36% of additional sales tax revenue) • Increase funding for fire staffing to put downtown Engine 1 in service o Estimated cost FY 2016/17 - $798,929 • Balance of funds to be used for training of fire personnel o Estimated FY 2016/17 - $209,071 ATTACHMENT 5 TO COUNCIL COMMUNICATION RESOLUTION NO. 2016- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI, CALLING AN ELECTION TO ASK THE VOTERS OF THE CITY OF LODI TO APPROVE A SPECIAL TRANSACTIONS AND USE TAX OF ONE-QUARTER CENT PER DOLLAR (0.25%) FOR FIFTEEN (15) YEARS, WITH THE TAX REVENUE TO BE USED EXCLUSIVELY FOR PUBLIC SAFETY, AND TO BE REVIEWED AND REPORTED ON BY AN INDEPENDENT CITIZENS OVERSIGHT COMMITTEE, AND REQUESTING THAT THE BOARD OF SUPERVISORS FOR THE COUNTY OF SAN JOAQUIN CONSOLIDATE THE ELECTION WITH THE ESTABLISHED GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2016, AND DIRECT THE COUNTY REGISTRAR OF VOTERS TO CONDUCT THE ELECTION ON THE CITY'S BEHALF WHEREAS, additional revenue is necessary to increase the number of sworn Lodi police officers to reduce crime and public nuisances associated with the effects of Assembly Bill 109 (Public Safety Realignment) and other criminal activity within the City, as well as increase fire staffing levels to bring downtown Fire Engine 1 back into service, and enhance the training of public safety (police and fire) personnel; WHEREAS, the City's adopted budget for FY2016/17 does not have revenue sufficient to increase staffing levels within the police and fire departments or fund advanced training for public safety personnel. The City's financial forecast over the next five years continues to reflect a lack of resources available to increase public safety staffing levels or increase the training budget for public safety personnel; WHEREAS, the City Council may propose that voters approve special transactions and use tax (sales tax) to raise additional funds to increase the number of sworn police officers, hire an additional part-time youth outreach worker to conduct gang intervention and prevention, increase fire staffing levels to put downtown Fire Engine 1 into service, as well to enhance the training of public safety personnel; WHEREAS, a special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes; WHEREAS, pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two-thirds vote of all members of the City Council and the tax subsequently is approved by a two-thirds vote of qualified voters of the City voting in an election; WHEREAS, a special transaction and use tax of one eighth of one quarter (0.25%) per dollar would generate sufficient revenue to increase the number of police officers, fund their safety equipment, and hire a part-time youth outreach worker to conduct gang intervention and prevention. In addition, downtown Fire Engine 1 could be returned to service by increasing staffing, and provide advance training to public safety personnel. The special tax would generate an estimated $2,800,000 in additional revenue annually, assuming taxable sales continue at their estimated rate, to be distributed 64% to Police (an estimated $1,792,000 per year) and 36% to Fire (an estimated $1,008,000 per year), (cumulatively, an estimated $26,880,000 to Police and $15,120,000 to Fire over fifteen years); WHEREAS, Government Code Section 53724(c) require that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote; WHERAS, November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure; WHEREAS, the City Council of the City of Lodi desires to submit to the voters at the statewide general election to be held on Tuesday, November 8, 2016, an ordinance entitled "Special Transactions and Use Tax Ordinance for Public Safety"; and WHEREAS, the City Council is authorized and directed by statute to submit the ordinance to the voters. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LODI DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. That the foregoing recitals are true and correct and are hereby adopted by the City Council. SECTION 2. That pursuant to Government Code Section 53724(c) requiring that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote, there is called and ordered to be held in the City of Lodi, an election on Tuesday, November 8, 2016, for the purpose of submitting the following ordinance: Shall the City of Lodi fight crime and expand programs to reduce gang violence by hiring additional police and a gang intervention worker, restore downtown Fire Engine 1 service, and increase training, by enacting a one-quarter cent per dollar (0.25%) transactions and use ("sales") tax, estimated to raise $2,800,000 annually, 64% to police, 36% to fire, sunset in 15 years, all revenue exclusively applied to these specific purposes, subject to citizen oversight and annual audit? YES NO SECTION 3. That the text of the ordinance submitted to the voters is attached as Exhibit A, and made a part hereof as though fully set forth herein. SECTION 4. That the vote requirement for the ordinance to pass is an affirmative vote of two-thirds of the voters of the City casting votes. SECTION 5. That the ballots to be used at the election shall be in form and content as required by the laws of the State of California. SECTION 6. That the City Clerk is authorized, instructed and directed to coordinate with the San Joaquin County Registrar of Voters 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. The City will reimburse the County for the actual costs incurred by the County Elections Official in conducting the election. SECTION 7. The City Clerk is hereby authorized to cause notice of the ordinance to be published one in the Lodi News Sentinel in accordance with Elections Code section 12111 and Government Code section 6061. SECTION 8. The City Manager is authorized and directed to expend the necessary funds to pay for the City's cost of placing the ordinance on the election ballot. SECTION 9. That pursuant to Election Code section 10242, 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 8:00 o'clock p.m. of the same day when the polls shall be closed, except as provided in Elections Code section14401. SECTION 10. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by the laws of the State of California for holding municipal elections. SECTION 11. 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 the laws of the State of California. SECTION 12. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. SECTION 13. That the City Clerk is authorized to certify the adoption of this Resolution and transmit a certified copy to the San Joaquin County Board of Supervisors and the San Joaquin County Registrar of Voters. Dated: July 6, 2016 I hereby certify that Resolution No. 2016- was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 6, 2016, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — ATTEST: JENNIFER M. FERRAIOLO City Clerk (SEAL) A •proved as to Form: r IC ►. MAGDICH `City Att6rney 2016 - MARK CHANDLER Mayor EXHIBIT A ORDINANCE NO. 2016 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI AMENDING LODI MUNICIPAL CODE TITLE 3 - REVENUE AND FINANCE BY ADDING CHAPTER 3.40 "SPECIAL TRANSACTION AND USE TAX FOR PUBLIC SAFETY" IMPOSING A SPECIAL ONE- QUARTER CENT PER DOLLAR (0.25%) TRANSACTIONS AND USE TAX TO INCREASE STAFFING FOR POLICE AND FIRE AND ENHANCE TRAINING FOR PUBLIC SAFETY PERSONNEL, TO BE COLLECTED AND ADMINISTERED BY THE STATE BOARD OF EQUALIZATION SUBJECT TO VOTER APPROVAL The City Council of the City of Lodi hereby finds as follows: A. Additional revenue is necessary to increase the number of sworn Lodi police officers to reduce crime and public nuisances associated with the effects of Assembly Bill 109 (Public Safety Realignment) and other criminal activity within the City, as well as increase fire staffing levels to bring downtown Fire Engine 1 back into service, and enhance the training of public safety (police and fire) personnel. B. The City's adopted budget for FY2016/17 does not have revenue sufficient to increase staffing levels within the police and fire departments or fund advanced training for public safety personnel. The City's financial forecast over the next five years continues to reflect a lack of resources available to increase public safety staffing levels or increase the training budget for public safety personnel. C. The City Council may propose that voters approve special transactions and use tax (sales tax) to raise additional funds to increase the number of sworn police officers, hire an additional part-time youth outreach worker to conduct gang intervention and prevention, increase fire staffing levels to put downtown Fire Engine 1 into service, as well to enhance the training of public safety personnel. D. A special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes. E. Pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one-eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two- thirds vote of all members of the City Council and the tax subsequently is approved by a two- thirds vote of qualified voters of the City voting in an election. F. A special transactions and use tax of one-quarter of one percent (0.25%) would generate sufficient revenue to increase the number of police officers, fund their safety equipment, and hire a part-time youth outreach worker to conduct gang intervention and prevention. In addition, downtown Fire Engine 1 could be returned to service by increasing staffing, and provide advance training to public safety personnel. The special tax would generate an estimated $2,800,000 in additional revenue annually, assuming taxable sales continue at their estimated rate, to be distributed 64% to Police (an estimated $1,792,000 per year) and 36% to Fire (an estimated $1,008,000 per year), (cumulatively, an estimated $26,880,000 to Police and $15,120,000 to Fire over fifteen years). 1 G. Government Code Section 53724(c) requires that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote. H. November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure. NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF LODI: Section 1. Lodi Municipal Code Title 3 - Revenue and Finance is hereby amended by adding Chapter 3.40 "Special Transaction and Use Tax for Public Safety" and shall read as follows: CHAPTER 3.40 SPECIAL TRANSACTIONS AND USE TAX ORDINANCE FOR PUBLIC SAFETY Sections: 3.40.010 Title 3.40.020 Operative Date 3.40.030 Purpose 3.40.040 Contract with State 3.40.050 Transaction Tax Rate 3.40.060 Place of Sale 3.40.070 Use Tax Rate 3.40.080 Termination Date 3.40.090 Adoption of Provisions and State Law 3.40.100 Limitations on Adoption of State Law and Collection of Use Taxes 3.40.110 Permit Not Required 3.40.120 Exemptions and Exclusions 3.40.130 Amendments 3.40.140 Enjoining Collection Forbidden 3.40.150 Refunds and Credits; Suits and Legal Proceedings 3.40.160 Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan 3.40.170 Establishment of Special Public Safety Sales Tax Oversight Committee 3.40.180 Annual Audit and Report 3.40.010 Title. This ordinance shall be known as the City of Lodi Special Transactions and Use Tax Ordinance for Public Safety. The City of Lodi hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 3.40.020 Operative Date. "Operative date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 3.40.030 Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and 2 Section 7285.91 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if two-thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 3.40.040 Contract with State. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.40.050 Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-quarter percent (0.25%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 3.40.060 Place of Sale. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3.40.070 Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one-quarter cent (0.25%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. 3 3.40.080. Termination Date. The authority to levy the tax imposed by this ordinance shall expire on the fifteenth anniversary of the operative date, unless extended by a two-thirds majority vote of the voters of the City. 3.40.090 Adoption of Provisions of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 3.40.100. Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, Victim Compensation and Government Claims Board, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.40.110. Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 4 3.40.120. Exemptions and Exclusions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax levied by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state -administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out -of -City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out -of -City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax levied by this ordinance, the storage, use or other consumption in this City of tangible personal property: 5 1. The gross receipts from the sale of which have been subject to a transactions tax under any state -administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.40.130. Amendments. A. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall 6 automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. B. Pursuant to Elections Code Section 9217 or any successor statute, the City Council may amend or repeal this ordinance and any of its exhibits, but not increase or extend the rate of tax levied herein, without a vote of the people. 3.40.140 Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.40.150. Refunds and Credits; Suits and Legal Proceedings. A. Refunds of and credits for any tax paid pursuant to this Chapter may be made only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. B. Suits and proceedings for the recovery of any amount alleged to have been erroneously or illegally determined or collected pursuant to this Chapter may be maintained in any court only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. A judgment shall not be rendered in favor of the plaintiff in any action brought against the State Board of Equalization to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount. 3.40.160. Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan. All proceeds of the special tax levied and imposed by this ordinance shall be accounted for and paid into a special fund or account designated for use by the City of Lodi only for public safety as set forth in the Public Safety Expenditure Plan for the administration and expenditure of the tax revenue, attached to this ordinance as Exhibit 1, and made a part hereof as though fully set forth herein. The Public Safety Expenditure Plan may be amended from time to time by a majority vote of the City Council, as long as the fund continues to be used for public safety. No revenues collected pursuant to the tax levied by this ordinance may be spent on General Fund operating expenses in effect at the time this ordinance becomes effective, or projects that are not a part of the Public Safety Expenditure Plan, absent a corresponding decline in General Fund revenues or increase in non -discretionary General Fund expenses ("Financial Contingencies"). However, revenues may be spent on staffing in excess of those the General Fund can support in the event of Financial Contingencies. Revenues collected by this ordinance shall supplement, rather than replace, existing City expenditures for public safety (police and fire) as reflected in the FY 2016/2017 budget, absent a corresponding decline in General Fund revenues or increase in non -discretionary General Fund expenses. 3.40.170 Establishment of Special Public Safety Sales Tax Oversight Committee. A. Committee Established. A Citizens' Oversight Committee is hereby established in the City of Lodi to monitor the expenditures of revenue collected pursuant to this Ordinance only and to report to the People and the City Council. 7 B. Selection of Members. Members of the Citizens' Oversight Committee shall be appointed by the City Council. The Committee shall consist of five members. Members of the Citizens' Oversight Committee shall not be current City of Lodi employees, officials, contractors, or vendors of the City. Past employees, officials, contractors, and vendors shall be eligible to serve on the Committee, provided that there are no conflicts of interest as determined by the City Attorney. Of the members of the Committee first appointed, three members shall be appointed for terms of two years and two members shall be appointed for terms of three years. Their successors shall be appointed for terms of three years. No member may serve more than two consecutive three-year terms. The City Council shall solicit members of the Citizens' Oversight Committee, through an open application process that is promoted through the City's adopted recruiting process. Any resident of Lodi is eligible to apply for Committee membership, subject to the restrictions specified above. All applications will be reviewed by the City Council, which will have the authority to make final decisions regarding Committee composition, subject to the guidelines in this Ordinance. C. Purposes and Jurisdiction. The Citizens' Oversight Committee shall conduct an annual review of expenditures of revenue collected pursuant to this Ordinance to determine whether such funds are expended for the purposes specified in the then current Public Safety Expenditure Plan. Committee members may review the annual financial audit performed by an independent auditor during the review process. The Citizens' Oversight Committee shall issue an annual report on their findings to the City Council and to the people. The Citizens' Oversight Committee annual report is subject to review and approval of the City Council. The Committee shall confine its review specifically to revenues generated pursuant to this ordinance and the expenditure of those revenues. The Committee shall serve in an advisory -only role to the City Council. Committee members shall not play a formal or informal role in the hiring, retention, or training of public safety personnel funded by this ordinance. The Committee is not charged with decision-making on spending priorities; schedules; staffing levels; funding source decisions; financing plans, including changes or revisions to the Public Safety Expenditure Plan; or tax rate assumptions. The Committee shall have no jurisdiction other than that delegated to it by the people pursuant to this ordinance. The Lodi City Manager or the City Manager's designee shall provide reasonable administrative or technical assistance required by the Committee to fulfill its responsibilities or publicize its findings. D. Meetings. The Citizens' Oversight Committee shall meet annually with specific meeting dates to be determined by Committee members. Citizens' Oversight Committee meetings are subject to the Brown Act. Meetings must be noticed and open to the public. Committee minutes and reports are a matter of public record, and must be posted on a web site provided by the City. Additional meetings may be scheduled by the Committee as necessary. All Committee members shall attend a training and orientation session prior to the first regular Committee meeting. Committee members are expected to attend all regular meetings. Failure to attend two consecutive meetings may result in removal from the Committee at the discretion of the City Council. E. Committee Operations. The Citizens' Oversight Committee will select members to serve as Chair and Vice Chair of the Committee. A City staff person will be appointed by the City Manager, or the City Manager's designee, to serve as Secretary. The Secretary will be responsible for preparing, posting and distributing agendas and taking minutes at each meeting. Approved minutes shall be made available to the public. Committee decisions, positions, findings and procedures shall require a simple majority vote of those Committee members in attendance. The quorum requirement for any meeting shall be a minimum of three (3) members. F. Vacancies. Committee members may be removed from the Committee only by the City Council for repeated absences at committee meetings, malfeasance, failure to meet the 8 qualifications set forth in this Section, or for inability or unwillingness to fulfill the duties of a Committee member. In the event of removal, resignation, or death, the City Council shall appoint a person to fill the vacant seat. G. Miscellaneous. Subject to the restrictions specifically addressed in this Section, the Committee may draft and adopt its own standard procedures and by-laws by majority vote. All Citizens' Oversight Committee procedures and by-laws remain subject to review and approval of the City Council. 3.40.180 Annual Audit and Report. A. The revenue from the tax imposed by this Chapter shall be subject to the annual audit performed by the City's independent auditor of the City's books, records, accounts, and fiscal procedures and which is reported in the City's Comprehensive Annual Financial Report. B. In addition to the annual audit, an Annual Review Report shall be prepared by the City, setting forth the amount of revenue received from the tax imposed by this Chapter, amount of disbursements, and description of expenditures. The purpose of the report is to assure accountability and the proper disbursement of the revenue from the tax imposed by this Chapter. The Annual Review Report shall be filed in the Office of the City Clerk not later than January 31St following the fiscal year in which the tax is collected. Section 2. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. Section 3. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council of the City of Lodi hereby declares that they would have adopted each and every provision of this ordinance regardless of the invalidity of any other provision. Section 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. Section 5. Compliance with the California Environmental Quality Act. The approval of this ordinance is exempt from the California Environmental Quality Act (Public Resources Code Sections 21000, et seq., "CEQA" and 14 Cal. Code of Regs. Sections 15000 et seq., "CEQA Guidelines"). This ordinance imposes a special sales tax that can be used for any legitimate governmental purposes as specified in this ordinance. It is not a commitment to any specific project that may result in a potentially significant physical impact on the environment. Section 6. Codification. Subject to the voter approval, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this ordinance in the Lodi Municipal Code. Section 7. Effective Date. If this ordinance is approved by two-thirds of the voters voting on the issue at the November 8, 2016 election, pursuant to Elections Code Section 9217, this 9 ordinance shall become effective ten (10) days after the City Council declares the results of the election. Section 8. Certification and Publication. The City Clerk shall certify the final approval of this ordinance, publish the same as required by law, and forward a certified copy of the adopted ordinance to the State Board of Equalization. Approved this day of July, 2016 MARK CHANDLER Mayor ATTEST: JENNIFER M. FERRAIOLO City Clerk State of California County of San Joaquin, ss. 1, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance No. was introduced at a regular meeting of the City Council of the City of Lodi held July 6, 2016, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held July , 2016, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — I further certify that Ordinance No. was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. Approved to Form: JANICE D. MAGDICH City Attorney 10 JENNIFER M. FERRAIOLO City Clerk Exhibit 1 Public Safety Expenditure Plan The Public Safety sales tax is estimated to generate approximately $2,800,000 annually for a 15 year period. Revenue will be split 64% ($1,792,000) to Police and 36% ($1,008,000) to Fire. Estimated annual expenditures for each department are shown below. Police (64% of additional sales tax revenue) • Fund up to eight (8) additional sworn officers o Estimated cost FY 2016/17 - $1,376,072 (8 positions) • Fund up to two (2) part-time park rangers (sworn positions) o Estimated cost FY 2016/17 - $59,830 (2 positions) • Fund one (1) part-time Youth Outreach Coordinator o Estimated cost FY 2016/17 - $31,509 • Fund equipment for up to 10 sworn officers o Estimated cost FY 2016/17 - $107,750 • Balance of funds to be used for training of police personnel Fire (36% of additional sales tax revenue) • Increase funding for fire staffing to put downtown Engine 1 in service o Estimated cost FY 2016/17 - $798,929 • Balance of funds to be used for training of fire personnel o Estimated FY 2016/17 - $209,071 ATTACHMENT 6 TO COUNCIL COMMUNICATION Public Safety Expenditure Plan The Public Safety sales tax is estimated to generate approximately $2,800,000 annually for a 15 year period. Revenue will be split 64% ($1,792,000) to Police and 36% ($1,008,000) to Fire. Estimated annual expenditures for each department are shown below. Police (64% of additional sales tax revenue) • Fund up to eight (8) additional sworn officers o Estimated cost FY 2016/17 - $1,376,072 (8 positions) • Fund up to two (2) part-time park rangers (sworn positions) o Estimated cost FY 2016/17 - $59,830 (2 positions) • Fund one (1) part-time Youth Outreach Coordinator o Estimated cost FY 2016/17 - $31,509 • Fund equipment for up to 10 sworn officers o Estimated cost FY 2016/17 - $107,750 • Balance of funds to be used for training of police personnel Fire (36% of additional sales tax revenue) • Increase funding for fire staffing to put downtown Engine 1 in service o Estimated cost FY 2016/17 - $798,929 • Balance of funds to be used for training of fire personnel o Estimated FY 2016/17 - $209,071 Sales Tax Ordinance City Council July 6, 2016 Sales tax ordinance Tonight's recommended action Introduce ordinance for parks and public safety taxes, subject to voter approval Adopt resolutions calling for November 8 election to decide: Ys -cent sales tax for park improvements ($1.4 million per year) -cent sales tax for increase staffing and training of Police, Fire ($2.8 million per year) Both reviewed and reported on by independent Citizens Oversight Committee 15 -year sunset Council Direction March 2 meeting Council heard PRCS request for Parks Maintenance sales tax measure and gave direction to include a Public Safety measure Council direction to include a sunset, separate initiatives and provide for oversight committee. May 3 meeting Detailed Parks spending plan presented to Council Indicated preference for separate Parks, Public Safety measures Sales tax ordinance Why is more money needed? Parks have approximately $40 million in deferred repairs, replacements, upgrades Maintenance cut to fund repairs, replacement Police staffing lower than 20 years ago 71 now vs. 74 in 1996 (78 in 2001) Long call response times Effect of realignment Reduced Fire response, preparedness Brown -out Engine 1 for cost savings Training reduced for cost savings Due to higher employee costs Sales tax ordinance Police: Where would the money go? Fund up to eight additional sworn officers Fund up to two part-time park rangers (sworn positions) Fund one part-time Youth Outreach Coordinator Fund equipment for up to 10 sworn officers Balance of funds to be used for training of police personnel Sales tax ordinance Fire: Where would the money go? Fully staff Engine 1 Balance of funds used for training of Fire personnel Sales tax ordinance Parks: Where would the money go? $15.5 million for repairs, maintenance $5.5 million for upgrades Approximately one-third for Lodi Lake No additional staff Sales tax ordinance PRCS community survey (2015) 71% in favor or somewhat in favor of higher taxes for park improvements, 10% against Very or somewhat important 83% upgrade Lodi Lake facilities and amenities 82% build additional trails and connect existing trails 80% upgrade neighborhood parks 79% upgrade existing trails Sales tax ordinance What will happen without additional revenue? Increased delays in Police response Engine 1 out of service most days Reduced response time, creates ripple effect on resources Fewer park amenities as they wear out Loss of parkland at Lodi Lake due to erosion Removal of playgrounds, park furniture Reduced maintenance to fund capital emergencies RESOLUTION NO. 2016-126 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI, CALLING AN ELECTION TO ASK THE VOTERS OF THE CITY OF LODI TO APPROVE A SPECIAL TRANSACTIONS AND USE TAX OF ONE-EIGHTH CENT PER DOLLAR (0.125%) FOR FIFTEEN (15) YEARS, WITH THE TAX REVENUE TO BE USED EXCLUSIVELY FOR PARK REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES, AND TO BE REVIEWED AND REPORTED ON BY AN INDEPENDENT CITIZENS OVERSIGHT COMMITTEE, AND REQUESTING THAT THE BOARD OF SUPERVISORS FOR THE COUNTY OF SAN JOAQUIN CONSOLIDATE THE ELECTION WITH THE ESTABLISHED GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2016, AND DIRECT THE COUNTY REGISTRAR OF VOTERS TO CONDUCT THE ELECTION ON THE CITY'S BEHALF WHEREAS, additional revenue is necessary to fund park repairs, maintenance, and upgrades, including such items as reconstructing parking Tots and roadways at Lodi Lake and other City parks; rehabilitating and building trails; renovating playgrounds; replacing and installing drinking fountains and park furniture; improving water efficiency and making other park infrastructure improvements; WHEREAS, the City's adopted budget for FY2016/17 is only able to provide for minimal funding for the repair and maintenance of City parks, and continues to defer capital investment needs. The City's financial forecast over the next five years continues to reflect a lack of resources available to address park repairs, maintenance, improvements, and upgrades; WHEREAS, the City Council may propose that voters approve a special transactions and use tax to raise additional funds for park repairs, maintenance, and upgrades; WHEREAS, a special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes; WHEREAS, pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two-thirds vote of all members of the City Council and the tax subsequently is approved by a two-thirds vote of qualified voters of the City voting in an election; WHEREAS, a special transaction and use tax of one eighth of one percent (0.125%) per dollar would generate sufficient revenue to begin addressing maintenance and repair work in City parks, and to make improvements, and upgrades to park amenities and park infrastructure throughout the City. The special tax would generate an estimated $1,400,000 in annual revenue and an estimated $21,000,000 over fifteen (15) years; WHEREAS, Government Code Section 53724(c) require that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote; WHERAS, November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure; WHEREAS, the City Council of the City of Lodi desires to submit to the voters at the statewide general election to be held on Tuesday, November 8, 2016, an ordinance entitled "Special Transactions and Use Tax Ordinance for Parks Repairs, Maintenance, Improvements, and Upgrades"; and WHEREAS, the City Council is authorized and directed by statute to submit the ordinance to the voters. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LODI DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. That the foregoing recitals are true and correct and are hereby adopted by the City Council. SECTION 2. That pursuant to Government Code Section 53724(c) requiring that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote, there is called and ordered to be held in the City of Lodi, an election on Tuesday, November 8, 2016, for the purpose of submitting the following ordinance: Shall the City of Lodi replace outdated playgrounds, repair eroded riverbank at Lodi Lake, repair and expand park trail systems, replace park restrooms and drinking fountains, and improve park parking lots, roadways, landscaping, and infrastructure, by enacting a one-eighth cent per dollar (0.125%) transactions and use ("sales") tax, estimated to raise $1,400,000 annually, to sunset in fifteen (15) years, with all revenue exclusively applied to these specific purposes, subject to citizen oversight and annual audit? YES NO SECTION 3. That the text of the ordinance submitted to the voters is attached as Exhibit A, and made a part hereof as though fully set forth herein. SECTION 4. That the vote requirement for the ordinance to pass is an affirmative vote of two-thirds of the voters of the City casting votes. SECTION 5. That the ballots to be used at the election shall be in form and content as required by the laws of the State of California. SECTION 6. That the City Clerk is authorized, instructed and directed to coordinate with the San Joaquin County Registrar of Voters 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. The City will reimburse the County for the actual costs incurred by the County Elections Official in conducting the election. SECTION 7. The City Clerk is hereby authorized to cause notice of the ordinance to be published one in the Lodi News Sentinel in accordance with Elections Code section 12111 and Government Code section 6061. SECTION 8. The City Manager is authorized and directed to expend the necessary funds to pay for the City's cost of placing the ordinance on the election ballot. SECTION 9. That pursuant to Election Code section 10242, 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 8:00 o'clock p.m. of the same day when the polls shall be closed, except as provided in Elections Code section14401. SECTION 10. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by the laws of the State of California for holding municipal elections. SECTION 11. 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 the laws of the State of California. SECTION 12. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. SECTION 13. That the City Clerk is authorized to certify the adoption of this Resolution and transmit a certified copy to the San Joaquin County Board of Supervisors and the San Joaquin County Registrar of Voters. Dated: July 6, 2016 hereby certify that Resolution No. 2016-126 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 6, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, and Mayor Chandler NOES: COUNCIL MEMBERS — Nakanishi ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None ATTEST: (;} NNIFER . FERRAIOLO City Clerk (SEAL) Approved as to Form: - JANICE D. MAGDICH City Attorney MARK CHANDLER Mayor 2016-126 EXHIBIT A ORDINANCE NO. 1925 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI AMENDING LODI MUNICIPAL CODE TITLE 3 - REVENUE AND FINANCE BY ADDING CHAPTER 3.30 "SPECIAL TRANSACTION AND USE TAX FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES" IMPOSING A SPECIAL ONE-EIGHTH CENT PER DOLLAR (0.125%) TRANSACTIONS AND USE TAX FOR PARK REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES TO BE COLLECTED AND ADMINISTERED BY THE STATE BOARD OF EQUALIZATION SUBJECT TO VOTER APPROVAL The City Council of the City of Lodi hereby finds as follows: A. Additional revenue is necessary to fund park repairs, maintenance, and upgrades, including such items as reconstructing parking lots and roadways at Lodi Lake and other City parks; rehabilitating and building park trails; renovating playgrounds; replacing and installing drinking fountains and park furniture; improving water efficiency and making other park infrastructure improvements. B. The City's adopted budget for FY2016/17 is only able to provide for minimal funding for the repair and maintenance of City parks, and continues to defer capital investment needs. The City's financial forecast over the next five years continues to reflect a lack of resources available to address park repairs, maintenance, improvements, and upgrades. C. The City Council may propose that voters approve a special transactions and use tax (sales tax) to raise additional funds for park repairs, maintenance, and upgrades. D. A special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes. E. Pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two- thirds vote of all members of the City Council and the tax subsequently is approved by a two- thirds vote of qualified voters of the City voting in an election. F. A special transactions and use tax of one eighth of one percent (0.125%) will generate sufficient revenue to enable the City to begin addressing maintenance and repair work in City parks, and to make improvements, and upgrades to park amenities and park infrastructure throughout the City. The special tax would generate an estimated $1,400,000 in annual revenue and an estimated $21,000,000 over fifteen (15) years. G Government Code Section 53724(c) requires that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote. H. November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure. 1 NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF LODI: Section 1. Lodi Municipal Code Title 3 - Revenue and Finance is hereby amended by adding Chapter 3.30 "Special Transaction and Use Tax for Parks Repairs, Maintenance, Improvements, and Upgrades" and shall read as follows: CHAPTER 3.30 SPECIAL TRANSACTIONS AND USE TAX ORDINANCE FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES Sections: 3.30.010 Title 3.30.020 Operative Date 3.30.030 Purpose 3.30.040 Contract with State 3.30.050 Transaction Tax Rate 3.30.060 Place of Sale 3.30.070 Use Tax Rate 3.30.080 Termination Date 3.30.090 Adoption of Provisions and State Law 3.30.100 Limitations on Adoption of State Law and Collection of Use Taxes 3.30.110 Permit Not Required 3.30.120 Exemptions and Exclusions 3.30.130 Amendments 3.30.140 Enjoining Collection Forbidden 3.30.150 Refunds and Credits; Suits and Legal Proceedings 3.30.160 Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan 3.30.170 Establishment of Special Parks Sales Tax Oversight Committee 3.30.180 Annual Audit and Report 3.30.010 Title. This ordinance shall be known as the City of Lodi Special Transactions and Use Tax Ordinance for Parks Repairs, Maintenance, Improvements, and Upgrades. The City of Lodi hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 3.30.020 Operative Date. "Operative date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 3.30.030 Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.91 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if two-thirds of the eleictors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. 2 B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 3.40.040 Contract with State. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.30.050 Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-eighth percent (0.125%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 3.30.060 Place of Sale. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3.30.070 Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one-eighth cent (0.125%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. 3.30.080. Termination Date. The authority to levy the tax imposed by this ordinance shall expire on the fifteenth anniversary of the operative date, unless extended by a two-thirds majority vote of the voters of the City. 3 3.30.090 Adoption of Provisions of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 3.30.100. Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, Victim Compensation and Government Claims Board, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.30.110. Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 3.30.120. Exemptions and Exclusions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax levied by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state -administered transactions or use tax. 4 B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out -of -City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out -of -City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax levied by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state -administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, 5 the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.30.130. Amendments. A. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. B. Pursuant to Elections Code Section 9217 or any successor statute, the City Council may amend or repeal this ordinance and any of its exhibits, but not increase or extend the rate of tax levied herein, without a vote of the people. 6 3.30.140 Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.30.150. Refunds and Credits; Suits and Legal Proceedings. A. Refunds of and credits for any tax paid pursuant to this Chapter may be made only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. B. Suits and proceedings for the recovery of any amount alleged to have been erroneously or illegally determined or collected pursuant to this Chapter may be maintained in any court only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. A judgment shall not be rendered in favor of the plaintiff in any action brought against the State Board of Equalization to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount. 3.30.160. Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan. All proceeds of the special tax levied and imposed by this ordinance shall be accounted for and paid into a special fund or account designated for use by the City of Lodi only for parks services as set forth in the Parks Expenditure Plan for the administration and expenditure of the tax revenue, attached to this ordinance as Exhibit 1, and made a part hereof as though fully set forth herein. The Parks Expenditure Plan may be amended from time to time by a majority vote of the City Council, as long as the fund continues to be utilized for parks repairs, maintenance, and upgrades. No revenues collected pursuant to the tax levied by this ordinance may be spent on General Fund operating expenses in effect at the time this ordinance becomes effective, or projects that are not a part of the Parks Expenditure Plan. Revenues collected by this ordinance shall supplement, rather than replace, existing City expenditures for parks services as reflected in the FY 2016/2017 budget. 3.30.170 Establishment of Special Parks Sales Tax Oversight Committee. A. Committee Established. A Citizens' Oversight Committee is hereby established in the City of Lodi to monitor the expenditures of revenue collected pursuant to this Ordinance only and to report to the People and the City Council. B. Selection of Members. Members of the Citizens' Oversight Committee shall be appointed by the City Council. The Committee shall consist of five members. Members of the Citizens' Oversight Committee shall not be current City of Lodi employees, officials, contractors, or vendors of the City. Past employees, officials, contractors, and vendors shall be eligible to serve on the Committee, provided that there are no conflicts of interest as determined by the City Attorney. Of the members of the Committee first appointed, three members shall be appointed for terms of two years and two members shall be appointed for terms of three years. Their successors shall be appointed for terms of three years. No member may serve more than two consecutive three-year terms. The City Council shall solicit members of the Citizens' Oversight Committee, through an open application process that is promoted through the City's adopted recruiting process. Any resident of Lodi is eligible to apply for Committee membership, subject to the restrictions specified above. All applications will be reviewed by the City Council, 7 which will have the authority to make final decisions regarding Committee composition, subject to the guidelines in this Ordinance. C. Purposes and Jurisdiction. The Citizens' Oversight Committee shall conduct an annual review of expenditures of revenue collected pursuant to this Ordinance to determine whether such funds are expended for the purposes specified in the then current Parks Expenditure Plan. Committee members may review the annual financial audit performed by an independent auditor during the review process. The Citizens' Oversight Committee shall issue an annual report on their findings to the City Council and to the People. The Citizens' Oversight Committee annual report is subject to review and approval of the City Council. The Committee shall confine its review specifically to revenues generated pursuant to this Ordinance and the expenditure of those revenues. The Committee shall serve in an advisory -only role to the City Council. Committee members shall not play a formal or informal role in contracting, project management, or any other aspect of the parks repairs, maintenance and upgrades funded by this Ordinance. The Committee is not charged with decision-making on spending priorities; schedules; project details; funding source decisions; financing plans, including changes or revisions to the Parks Expenditure Plan; or tax rate assumptions. The Committee shall have no jurisdiction other than that delegated to it by the People pursuant to this Ordinance. The Lodi City Manager or the City Manager's designee shall provide reasonable administrative or technical assistance required by the Committee to fulfill its responsibilities or publicize its findings. D. Meetings. The Citizens' Oversight Committee shall meet annually with specific meeting dates to be determined by Committee members. Citizens' Oversight Committee meetings are subject to the Brown Act. Meetings must be noticed and open to the public. Committee minutes and reports are a matter of public record, and must be posted on a web site provided by the City. Additional meetings may be scheduled by the Committee as necessary. All Committee members shall attend a training and orientation session prior to the first regular Committee meeting. Committee members are expected to attend all regular meetings. Failure to attend two consecutive meetings may result in removal from the Committee at the discretion of the City Council. E. Committee Operations. The Citizens' Oversight Committee will select members to serve as Chair and Vice Chair of the Committee. A City staff person will be appointed by the City Manager, or the City Manager's designee, to serve as Secretary. The Secretary will be responsible for preparing, posting and distributing agendas and taking minutes at each meeting. Approved minutes shall be made available to the public. Committee decisions, positions, findings and procedures shall require a simple majority vote of those Committee members in attendance. The quorum requirement for any meeting shall be a minimum of three (3) members. F. Vacancies. Committee members may be removed from the Committee only by the City Council for repeated absences at committee meetings, malfeasance, failure to meet the qualifications set forth in this Section, or for inability or unwillingness to fulfill the duties of a Committee member. In the event of removal, resignation, or death, the City Council shall appoint a person to fill the vacant seat. G. Miscellaneous. Subject to the restrictions specifically addressed in this Section, the Committee may draft and adopt its own standard procedures and by-laws by majority vote. All Citizens' Oversight Committee procedures and by-laws remain subject to review and approval of the City Council. 8 3.30.180 Annual Audit and Report. A. The revenue from the tax imposed by this Chapter shall be subject to the annual audit performed by the City's independent auditor of the City's books, records, accounts, and fiscal procedures and which is reported in the City's Comprehensive Annual Financial Report. B. In addition to the annual audit, an Annual Review Report shall be prepared by the City, setting forth the amount of revenue received from the tax imposed by this Chapter, amount of disbursements, and description of expenditures. The purpose of the report is to assure accountability and the proper disbursement of the revenue from the tax imposed by this Chapter. The Annual Review Report shall be filed in the Office of the City Clerk not later than January 31st following the fiscal year in which the tax is collected. Section 2. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. Section 3. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council of the City of Lodi hereby declares that they would have adopted each and every provision of this ordinance regardless of the invalidity of any other provision. Section 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. Section 5. Compliance with the California Environmental Quality Act. The approval of this ordinance is exempt from the California Environmental Quality Act (Public Resources Code Sections 21000, et seq., "CEQA" and 14 Cal. Code of Regs. Sections 15000 et seq., "CEQA Guidelines"). This ordinance imposes a special sales tax that can be used for any legitimate governmental purposes as specified in this ordinance. It is not a commitment to any specific project that may result in a potentially significant physical impact on the environment. Section 6. Codification. Subject to the voter approval, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this ordinance in the Lodi Municipal Code. Section 7. Effective Date. If this ordinance is approved by two-thirds of the voters voting on the issue at the November 8, 2016 election, pursuant to Elections Code Section 9217, this ordinance shall become effective ten (10) days after the City Council declares the results of the election. Section 8. Certification and Publication. The City Clerk shall certify the final approval of this ordinance, publish the same as required by law, and forward a certified copy of the adopted ordinance to the State Board of Equalization. 9 Approved this day of July, 2016 MARK CHANDLER Mayor ATTEST: JENNIFER M. FERRAIOLO City Clerk State of California County of San Joaquin, ss. I, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1925 was introduced at a regular meeting of the City Council of the City of Lodi held July 6, 2016, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held July _, 2016, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — 1 further certify that Ordinance No. 1925 was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. Approved to Form: JANICE D. MAGDICH City Attorney 10 JENNIFER M. FERRAIOLO City Clerk EXHIBIT 1 TO ORDINANCE ADDING CHAPTER 3.30 "SPECIAL TRANSACTION AND USE TAX FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES" PARKS SPENDING PLAN Item g Parks spending plan: One-eighth cent, 15 years 1 Lad!Lake Pak SOLYh Shen ReCirisslicrsirion 2 Lodi Lake Erosion Control 3 Candy Cane Park Renovations 4 Legion Park Improvements 5 Emerson Park Pialy0d5dfl .Mkna/lrer4ueprwerryrts 6 Lodi Lake Park North Side Playground 7 tafiWeP05 MOAh►ave000M B kits MO= eO4(fiD1.11 0008 9 Haturcaeeatr.liehab&rsdoe' 10 Dog Park amenities 11 Beckman Park playground installation 12 Replaster Blakely Park pool/repairs 13 Lodl Lake Park South Shore Restroom replacement 14 Peterson Park upgrades 15 Solas Park sports lighting replacement 16 Henry Glavin Park playground replacement 17 English Oaks Common playground/picnic 19 Lodi Lake riverfront trail 19 Vlnewood Park Restroom demo/replacement 20 Century Meadows Park playground surface 21 Lodi Lake Park Master Plan Improvements TBD 22 Vlnewood Park irrigation system upgrades 23 Hutchins Street Square Pool HVACsystem 24 Eedeh9lks dbwr6Rs ggarafWlW 4ltS,wall Wok 25 Illak•is Peelr aryatilaSetiOM5 rMor44loq/M1H4 rural* 26 Remove Lawrence Park restroom 27 5alas Park parking lot reconstruction 28 Kofu Park repairs 29 Softball Complex renovations 30 Rf9Lat495.3ha3fcalpt76mmineLake wading peel 31 Beckman Park Irrigation booster pump 32 Construct splash pad at location TBD 33 2upo Field lighting replacement 34 Chapman Field repairs 35 Zupo Field seating repairs 36 Aquatic facility mechanical replacement 37 New playground at Borchardt and Vinewood parks 38 Beckman Park picnic shelter Century Park playground replacement 39 Replace Lodi Lake Park North restroom 40 Salas Park Playground replacement 41 Larkases Park plfygr000rdrylaesolo2 42 Peterson Park playground replacement 43 2upo Field outfield turf renovations 44 Replace Emerson Park ressrooms 45 Parks Mechanlcshop Improvements 46 Hale Park Community/Restroom renovations 47 Blakely Park playground/sports court replacement 48 Male Park W rO4I9 aaphcime0t 49 Century Meadows playground replacement 50 Replace Hutchins Street Square Pool liner 51 Hutchins Street Square playground replacement 52 X016 Park rparmndmnersaen naara0000 53 44005145, Soak teurmrribie round eywatiep 54 Van Buskirk Park playground replacement 55 Lawrence Park renovations, TBD 56 Hale Park parking lot reconstruction 57 gad= Parkr4gtOOmrSnofarlpNS 56 Solas Park bleacher seating repairs 59 Replace worn playground apparatus/fall zones 66 Park furniture/shelter repairs & replacement 61 gookcyftp.R51t4240 044100bf0Wtllre 62 Tree safety (pruning, removal) 63 Turf maintenance/repurpose 64 Grape Bowl Dnprovemems (set-aside) 65 Skate Park annual repairs 66 Park irrigation system repairs/upgrades 67 Parking lot maintenance/renovations (set-aside) Total 2017/18 2018/18 SB0O,0OO 5150,000 51,000,000 51,240,000 5135,000 5102,000 2018/20 2029/21 2021/22 2022/23 2023/24 2024/25 5175,000 5200,000 5750,000 585,000 5180,000 525,000 5200,000 580,000 5400,000 545,000 5300,000 5180,000 5245,000 5675,000 5255,006 555,000 $500,005 5150,000 5350,000 555,000 580,000 5535,000 510,000 $500,000 5142,000 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 PeeJeetteals 5800,000 52,390,000 5115,000 5225,000 5325,000 5175,000 5330,000 5200,000 5750,000 585,000 5180,000 525,000 5200,000 580,000 5160,000 5400,000 545,000 5300,000 $225,000 5405,000 5245,000 5675,000 5255,600 555,000 5500,000 5500,350 52,000,000 5150,650 5350,000 555,000 5405,000 5485,000 510,000 5500,000 5142,000 5575,000 5575,000 520,000 520,000 560,000 560,000 5235,350 5200,000 5150,000 5150,000 5160,000 5160,350 5450,000 5450,000 540,000 540,000 5203,000 5200,000 5400,000 $225,000 5225,000 5180,000 5160,000 5400,000 5400,000 5225,000 5225,000 5175,000 5175,000 5225,000 5225,0130 565,000 585,0OD 5300,000 5300,000 580,000 550,000 5400,000 5400,000 5300,000 5300,00D 5180,000 5280,200 5200,000 5235,000 575,000 575,060 5225,000 5225,000 5250,000 5150,000 5225,000 5225,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 535,000 535,000 530,000 530,000 530,000 535,000 540,000 535,000 540,000 510,000 535,000 540,000 535,000 535,000 535,000 510,000 510,000 510,000 510,000 510,000 510,000 510,000 510,035 510,000 510,000 510,000 510,000 510,035 530,000 510,000 575,000 550,000 540,000 540,000 540,000 540,000 540,035 540,005 540,000 540,000 540,035 540,000 540,000 540,000 540,000 520,000 520,060 520,000 520,000 530,000 520,000 520,000 540,000 5120,000 5135,000 5100,000 5120,000 520,000 520,000 520,000 550,000 550,035 550,000 550,000 550,060 550,000 550,000 550,000 050,000 550,000 550,000 550,000 550,000 550,035 550,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 555,000 525,000 535,020 515,000 538,000 510,035 575,000 5100,600 550,066 555,000 525,060 525,000 525,060 525,003 525,000 525,000 525,000 525,000 525,000 525,000 525,000 525,000 51,400,000 51,400,000 51,400,000 51,400,000 51,400,000 $1,400,000 51,400,600 51,400,000 51,400,000 $1,400,000 51,400,000 51,400,000 51,400,000 51,400,000 $1,400,000 50 50 50 50 55,000 575,000 5100,000 5150,035 5645,000 5705,000 5750,000 575,000 5435,000 $300,000 621,000,000 RESOLUTION NO. 2016-127 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI, CALLING AN ELECTION TO ASK THE VOTERS OF THE CITY OF LODI TO APPROVE A SPECIAL TRANSACTIONS AND USE TAX OF ONE- QUARTER CENT PER DOLLAR (0.25%) FOR FIFTEEN (15) YEARS, WITH THE TAX REVENUE TO BE USED EXCLUSIVELY FOR PUBLIC SAFETY, AND TO BE REVIEWED AND REPORTED ON BY AN INDEPENDENT CITIZENS OVERSIGHT COMMITTEE, AND REQUESTING THAT THE BOARD OF SUPERVISORS FOR THE COUNTY OF SAN JOAQUIN CONSOLIDATE THE ELECTION WITH THE ESTABLISHED GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2016, AND DIRECT THE COUNTY REGISTRAR OF VOTERS TO CONDUCT THE ELECTION ON THE CITY'S BEHALF WHEREAS, additional revenue is necessary to increase the number of sworn Lodi police officers to reduce crime and public nuisances associated with the effects of Assembly Bill 109 (Public Safety Realignment) and other criminal activity within the City, as well as increase fire staffing levels to bring downtown Fire Engine 1 back into service, and enhance the training of public safety (police and fire) personnel; WHEREAS, the City's adopted budget for FY2016/17 does not have revenue sufficient to increase staffing levels within the police and fire departments or fund advanced training for public safety personnel. The City's financial forecast over the next five years continues to reflect a lack of resources available to increase public safety staffing levels or increase the training budget for public safety personnel; WHEREAS, the City Council may propose that voters approve special transactions and use tax (sales tax) to raise additional funds to increase the number of sworn police officers, hire an additional part-time youth outreach worker to conduct gang intervention and prevention, increase fire staffing levels to put downtown Fire Engine 1 into service, as well to enhance the training of public safety personnel; WHEREAS, a special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes; WHEREAS, pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two-thirds vote of all members of the City Council and the tax subsequently is approved by a two-thirds vote of qualified voters of the City voting in an election; WHEREAS, a special transaction and use tax of one eighth of one quarter (0.25%) per dollar would generate sufficient revenue to increase the number of police officers, fund their safety equipment, and hire a part-time youth outreach worker to conduct gang intervention and prevention. In addition, downtown Fire Engine 1 could be returned to service by increasing staffing, and provide advance training to public safety personnel. The special tax would generate an estimated $2,800,000 in additional revenue annually, assuming taxable sales continue at their estimated rate, to be distributed 64% to Police (an estimated $1,792,000 per year) and 36% to Fire (an estimated $1,008,000 per year), (cumulatively, an estimated $26,880,000 to Police and $15,120,000 to Fire over fifteen years); WHEREAS, Government Code Section 53724(c) require that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote; WHERAS, November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure; WHEREAS, the City Council of the City of Lodi desires to submit to the voters at the statewide general election to be held on Tuesday, November 8, 2016, an ordinance entitled "Special Transactions and Use Tax Ordinance for Public Safety"; and WHEREAS, the City Council is authorized and directed by statute to submit the ordinance to the voters. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LODI DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. That the foregoing recitals are true and correct and are hereby adopted by the City Council. SECTION 2. That pursuant to Government Code Section 53724(c) requiring that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote, there is called and ordered to be held in the City of Lodi, an election on Tuesday, November 8, 2016, for the purpose of submitting the following ordinance: Shall the City of Lodi fight crime and expand programs to reduce gang violence by hiring additional police and a gang intervention worker, restore downtown Fire Engine 1 service, and increase training, by enacting a one-quarter cent per dollar (0.25%) transactions and use ("sales") tax, estimated to raise $2,800,000 annually, 64% to police, 36% to fire, sunset in 15 years, all revenue exclusively app#ied to these specific purposes, subject to citizen oversight and annual audit? YES NO SECTION 3. That the text of the ordinance submitted to the voters is attached as Exhibit A, and made a part hereof as though fully set forth herein. SECTION 4. That the vote requirement for the ordinance to pass is an affirmative vote of two-thirds of the voters of the City casting votes. SECTION 5. That the ballots to be used at the election shall be in form and content as required by the laws of the State of California. SECTION 6. That the City Clerk is authorized, instructed and directed to coordinate with the San Joaquin County Registrar of Voters 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. The City will reimburse the County for the actual costs incurred by the County Elections Official in conducting the election. SECTION 7. The City Clerk is hereby authorized to cause notice of the ordinance to be published one in the Lodi News Sentinel in accordance with Elections Code section 12111 and Government Code section 6061. SECTION 8. The City Manager is authorized and directed to expend the necessary funds to pay for the City's cost of placing the ordinance on the election ballot. SECTION 9. That pursuant to Election Code section 10242, 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 8:00 o'clock p.m. of the same day when the polls shall be closed, except as provided in Elections Code section14401. SECTION 10. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by the laws of the State of California for holding municipal elections. SECTION 11. 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 the laws of the State of California. SECTION 12. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. SECTION 13. That the City Clerk is authorized to certify the adoption of this Resolution and transmit a certified copy to the San Joaquin County Board of Supervisors and the San Joaquin County Registrar of Voters. Dated: July 6, 2016 I hereby certify that Resolution No. 2016-127 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 6, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, and Mayor Chandler NOES: COUNCIL MEMBERS — Nakanishi ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None ATTEST: e- NIFER City Clerk (SEAL) FERRAIOLO Approved as to Form: JANICE'D. MAGDICH City Attorney MARK CHANDLER Mayor 2016-127 EXHIBIT A ORDINANCE NO. 1926 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI AMENDING LODI MUNICIPAL CODE TITLE 3 - REVENUE AND FINANCE BY ADDING CHAPTER 3.40 "SPECIAL TRANSACTION AND USE TAX FOR PUBLIC SAFETY" IMPOSING A SPECIAL ONE- QUARTER CENT PER DOLLAR (0.25%) TRANSACTIONS AND USE TAX TO INCREASE STAFFING FOR POLICE AND FIRE AND ENHANCE TRAINING FOR PUBLIC SAFETY PERSONNEL, TO BE COLLECTED AND ADMINISTERED BY THE STATE BOARD OF EQUALIZATION SUBJECT TO VOTER APPROVAL The City Council of the City of Lodi hereby finds as follows: A. Additional revenue is necessary to increase the number of sworn Lodi police officers to reduce crime and public nuisances associated with the effects of Assembly Bill 109 (Public Safety Realignment) and other criminal activity within the City, as well as increase fire staffing levels to bring downtown Fire Engine 1 back into service, and enhance the training of public safety (police and fire) personnel. B. The City's adopted budget for FY2016/17 does not have revenue sufficient to increase staffing levels within the police and fire departments or fund advanced training for public safety personnel. The City's financial forecast over the next five years continues to refiect a lack of resources available to increase public safety staffing levels or increase the training budget for public safety personnel. C. The City Council may propose that voters approve special transactions and use tax (sales tax) to raise additional funds to increase the number of sworn police officers, hire an additional part-time youth outreach worker to conduct gang intervention and prevention, increase fire staffing levels to put downtown Fire Engine 1 into service, as well to enhance the training of public safety personnel. D. A special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes. E. Pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one-eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two- thirds vote of all members of the City Council and the tax subsequently is approved by a two- thirds vote of qualified voters of the City voting in an election. F. A special transactions and use tax of one-quarter of one percent (0.25%) would generate sufficient revenue to increase the number of police officers, fund their safety equipment, and hire a part-time youth outreach worker to conduct gang intervention and prevention. In addition, downtown Fire Engine 1 could be returned to service by increasing staffing, and provide advance training to public safety personnel. The special tax would generate an estimated $2,800,000 in additional revenue annually, assuming taxable sales continue at their estimated rate, to be distributed 64% to Police (an estimated $1,792,000 per year) and 36% to Fire (an estimated $1,008,000 per year), (cumulatively, an estimated $26,880,000 to Police and $15,120,000 to Fire over fifteen years). 1 G. Government Code Section 53724(c) requires that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote. H. November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure. NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF LODI: Section 1. Lodi Municipal Code Title 3 - Revenue and Finance is hereby amended by adding Chapter 3.40 "Special Transaction and Use Tax for Public Safety" and shall read as follows: CHAPTER 3.40 SPECIAL TRANSACTIONS AND USE TAX ORDINANCE FOR PUBLIC SAFETY Sections: 3.40.010 Title 3.40.020 Operative Date 3.40.030 Purpose 3.40.040 Contract with State 3.40.050 Transaction Tax Rate 3.40.060 Place of Sale 3.40.070 Use Tax Rate 3.40.080 Termination Date 3.40.090 Adoption of Provisions and State Law 3.40.100 Limitations on Adoption of State Law and Collection of Use Taxes 3.40.110 Permit Not Required 3.40.120 Exemptions and Exclusions 3.40.130 Amendments 3.40.140 Enjoining Collection Forbidden 3.40.150 Refunds and Credits; Suits and Legal Proceedings 3.40.160 Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan 3.40.170 Establishment of Special Public Safety Sales Tax Oversight Committee 3.40.180 Annual Audit and Report 3.40.010 Title. This ordinance shall be known as the City of Lodi Special Transactions and Use Tax Ordinance for Public Safety. The City of Lodi hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 3.40.020 Operative Date. "Operative date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 3.40.030 Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and 2 Section 7285.91 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if two-thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 3.40.040 Contract with State. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.40.050 Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-quarter percent (0.25%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 3.40.060 Place of Sale. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3.40.070 Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one-quarter cent (0.25%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. 3 3.40.080. Termination Date. The authority to levy the tax imposed by this ordinance shall expire on the fifteenth anniversary of the operative date, unless extended by a two-thirds majority vote of the voters of the City. 3.40.090 Adoption of Provisions of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 3.40.100. Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, Victim Compensation and Government Claims Board, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.40.110. Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 4 3.40.120. Exemptions and Exclusions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax levied by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state -administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out -of -City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out -of -City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax levied by this ordinance, the storage, use or other consumption in this City of tangible personal property: 5 1. The gross receipts from the sale of which have been subject to a transactions tax under any state -administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.40.130. Amendments. A. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall 6 automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. B. Pursuant to Elections Code Section 9217 or any successor statute, the City Council may amend or repeal this ordinance and any of its exhibits, but not increase or extend the rate of tax levied herein, without a vote of the people. 3.40.140 Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.40.150. Refunds and Credits: Suits and Legal Proceedings. A. Refunds of and credits for any tax paid pursuant to this Chapter may be made only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. B. Suits and proceedings for the recovery of any amount alleged to have been erroneously or illegally determined or collected pursuant to this Chapter may be maintained in any court only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. A judgment shall not be rendered in favor of the plaintiff in any action brought against the State Board of Equalization to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount. 3.40.160. Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan. All proceeds of the special tax levied and imposed by this ordinance shall be accounted for and paid into a special fund or account designated for use by the City of Lodi only for public safety as set forth in the Public Safety Expenditure Plan for the administration and expenditure of the tax revenue, attached to this ordinance as Exhibit 1, and made a part hereof as though fully set forth herein. The Public Safety Expenditure Plan may be amended from time to time by a majority vote of the City Council, as long as the fund continues to be used for public safety. No revenues collected pursuant to the tax levied by this ordinance may be spent on General Fund operating expenses in effect at the time this ordinance becomes effective, or projects that are not a part of the Public Safety Expenditure Plan, absent a corresponding decline in General Fund revenues or increase in non -discretionary General Fund expenses ("Financial Contingencies"). However, revenues may be spent on staffing in excess of those the General Fund can support in the event of Financial Contingencies. Revenues collected by this ordinance shall supplement, rather than replace, existing City expenditures for public safety (police and fire) as reflected in the FY 2016/2017 budget, absent a corresponding decline in General Fund revenues or increase in non -discretionary General Fund expenses. 3.40.170 Establishment of Special Public Safety Sales Tax Oversight Committee. A. Committee Established. A Citizens' Oversight Committee is hereby established in the City of Lodi to monitor the expenditures of revenue collected pursuant to this Ordinance only and to report to the People and the City Council. 7 B. Selection of Members. Members of the Citizens' Oversight Committee shall be appointed by the City Council. The Committee shall consist of five members. Members of the Citizens' Oversight Committee shall not be current City of Lodi employees, officials, contractors, or vendors of the City. Past employees, officials, contractors, and vendors shall be eligible to serve on the Committee, provided that there are no conflicts of interest as determined by the City Attorney. Of the members of the Committee first appointed, three members shall be appointed for terms of two years and two members shall be appointed for terms of three years. Their successors shall be appointed for terms of three years. No member may serve more than two consecutive three-year terms. The City Council shall solicit members of the Citizens' Oversight Committee, through an open application process that is promoted through the City's adopted recruiting process. Any resident of Lodi is eligible to apply for Committee membership, subject to the restrictions specified above. All applications will be reviewed by the City Council, which will have the authority to make final decisions regarding Committee composition, subject to the guidelines in this Ordinance. C. Purposes and Jurisdiction. The Citizens' Oversight Committee shall conduct an annual review of expenditures of revenue collected pursuant to this Ordinance to determine whether such funds are expended for the purposes specified in the then current Public Safety Expenditure Plan. Committee members may review the annual financial audit performed by an independent auditor during the review process. The Citizens' Oversight Committee shall issue an annual report on their findings to the City Council and to the people. The Citizens' Oversight Committee annual report is subject to review and approval of the City Council. The Committee shall confine its review specifically to revenues generated pursuant to this ordinance and the expenditure of those revenues. The Committee shall serve in an advisory -only role to the City Council. Committee members shall not play a formal or informal role in the hiring, retention, or training of public safety personnel funded by this ordinance. The Committee is not charged with decision-making on spending priorities; schedules; staffing levels; funding source decisions; financing plans, including changes or revisions to the Public Safety Expenditure Plan; or tax rate assumptions. The Committee shall have no jurisdiction other than that delegated to it by the people pursuant to this ordinance. The Lodi City Manager or the City Manager's designee shall provide reasonable administrative or technical assistance required by the Committee to fulfill its responsibilities or publicize its findings. D. Meetings. The Citizens' Oversight Committee shall meet annually with specific meeting dates to be determined by Committee members. Citizens' Oversight Committee meetings are subject to the Brown Act. Meetings must be noticed and open to the public. Committee minutes and reports are a matter of public record, and must be posted on a web site provided by the City. Additional meetings may be scheduled by the Committee as necessary. All Committee members shall attend a training and orientation session prior to the first regular Committee meeting. Committee members are expected to attend all regular meetings. Failure to attend two consecutive meetings may result in removal from the Committee at the discretion of the City Council. E. Committee Operations. The Citizens' Oversight Committee will select members to serve as Chair and Vice Chair of the Committee. A City staff person will be appointed by the City Manager, or the City Manager's designee, to serve as Secretary. The Secretary will be responsible for preparing, posting and distributing agendas and taking minutes at each meeting. Approved minutes shall be made available to the public. Committee decisions, positions, findings and procedures shall require a simple majority vote of those Committee members in attendance. The quorum requirement for any meeting shall be a minimum of three (3) members. F. Vacancies. Committee members may be removed from the Committee only by the City Council for repeated absences at committee meetings, malfeasance, failure to meet the 8 qualifications set forth in this Section, or for inability or unwillingness to fulfill the duties of a Committee member. In the event of removal, resignation, or death, the City Council shall appoint a person to fill the vacant seat. G. Miscellaneous. Subject to the restrictions specifically addressed in this Section, the Committee may draft and adopt its own standard procedures and by-laws by majority vote. All Citizens' Oversight Committee procedures and by-laws remain subject to review and approval of the City Council. 3.40.180 Annual Audit and Report. A. The revenue from the tax imposed by this Chapter shall be subject to the annual audit performed by the City's independent auditor of the City's books, records, accounts, and fiscal procedures and which is reported in the City's Comprehensive Annual Financial Report. B. In addition to the annual audit, an Annual Review Report shall be prepared by the City, setting forth the amount of revenue received from the tax imposed by this Chapter, amount of disbursements, and description of expenditures. The purpose of the report is to assure accountability and the proper disbursement of the revenue from the tax imposed by this Chapter. The Annual Review Report shall be filed in the Office of the City Clerk not later than January 31st following the fiscal year in which the tax is collected. Section 2. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. Section 3. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council of the City of Lodi hereby declares that they would have adopted each and every provision of this ordinance regardless of the invalidity of any other provision. Section 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. Section 5. Compliance with the California Environmental Quality Act. The approval of this ordinance is exempt from the California Environmental Quality Act (Public Resources Code Sections 21000, et seq., "CEQA" and 14 Cal. Code of Regs. Sections 15000 et seq., "CEQA Guidelines"). This ordinance imposes a special sales tax that can be used for any legitimate governmental purposes as specified in this ordinance. It is not a commitment to any specific project that may result in a potentially significant physical impact on the environment. Section 6. Codification. Subject to the voter approval, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this ordinance in the Lodi Municipal Code. Section 7. Effective Date. If this ordinance is approved by two-thirds of the voters voting on the issue at the November 8, 2016 election, pursuant to Elections Code Section 9217, this 9 ordinance shall become effective ten (10) days after the City Council declares the results of the election. Section 8. Certification and Publication. The City Clerk shall certify the final approval of this ordinance, publish the same as required by law, and forward a certified copy of the adopted ordinance to the State Board of Equalization. Approved this day of July, 2016 MARK CHANDLER Mayor ATTEST: JENNIFER M. FERRAIOLO City Clerk State of California County of San Joaquin, ss. I, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1926 was introduced at a regular meeting of the City Council of the City of Lodi held July 6, 2016, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held July , 2016, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — 1 further certify that Ordinance No. 1926 was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. Approved to Form: JANICE D. MAGDICH City Attorney 10 JENNIFER M. FERRAIOLO City Clerk Exhibit 1 Public Safety Expenditure Plan The Public Safety sales tax is estimated to generate approximately $2,800,000 annually for a 15 year period. Revenue will be split 64% ($1,792,000) to Police and 36% ($1,008,000) to Fire. Estimated annual expenditures for each department are shown below. Police (64% of additional sales tax revenue) • Fund up to eight (8) additional sworn officers o Estimated cost FY 2016/17 - $1,376,072 (8 positions) • Fund up to two (2) part-time park rangers (sworn positions) o Estimated cost FY 2016/17 - $59,830 (2 positions) • Fund one (1) part-time Youth Outreach Coordinator o Estimated cost FY 2016/17 - $31,509 • Fund equipment for up to 10 sworn officers o Estimated cost FY 2016/17 - $107,750 • Balance of funds to be used for training of police personnel Fire (36% of additional sales tax revenue) • Increase funding for fire staffing to put downtown Engine 1 in service o Estimated cost FY 2016/17 - $798,929 • Balance of funds to be used for training of fire personnel o Estimated FY 2016/17 - $209,071 CITY COUNCIL MARK CHANDLER, Mayor DOUG KUEHNE, Mayor Pro Tempore BOB JOHNSON JOANNE MOUNCE ALAN NAKANISHI CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6702 / FAX (209) 333-6807 www.lodi.gov citvclerkaC�lodi.uav July 7, 2016 Austin Erdman Registrar of Voters 44 N. San Joaquin St., Ste. 350 Stockton, CA 95202 RE: NOVEMBER 8, 2016, GENERAL MUNICIPAL ELECTION STEPHEN SCHWABAUER City Manager JENNIFER M. FERRAIOLO City Clerk JANICE D. MAGDICH City Attorney Attached please find copies of the following resolutions pertaining to the November 8, 2016, General Municipal Election, which were adopted by the Lodi City Council at its July 6, regular meeting: • Resolution calling an election to ask the voters of the City of Lodi to approve a special transactions and use tax of one-eighth cent per dollar (0.125%) for 15 years, with the tax revenue to be used exclusively for park repairs, maintenance, improvements, and upgrades, and to be reviewed and reported on by an independent citizens oversight committee, and requesting that the Board of Supervisors for the County of San Joaquin consolidate the election with the established general election to be held on Tuesday, November 8, 2016, and direct the County Registrar of Voters to conduct the election on the City's behalf; • Resolution calling an election to ask the voters of the City of Lodi to approve a special transactions and use tax of one-quarter cent per dollar (0.25%) for 15 years, with the tax revenue to be used exclusively for public safety, and to be reviewed and reported on by an independent citizens oversight committee, and requesting that the Board of Supervisors for the County of San Joaquin consolidate the election with the established general election to be held on Tuesday, November 8, 2016, and direct the County Registrar of Voters to conduct the election on the City's behalf; • Resolution setting priorities for filing written arguments regarding City measures and directing the City Attorney to prepare an impartial analysis for each City measure to be submitted to the voters at the General Municipal Election to be held on November 8, 2016; and • Resolution providing for the filing of rebuttal arguments for City measures submitted to the voters at the General Municipal Election to be held on November 8, 2016. Should you have any questions regarding this matter, please feel free to give me a call. Sincerely, nnifer M i Ferraiolo JMF City Clerk Enclosures cc: San Joaquin County Board of Supervisors (+ encl.) N:\Administration\CLERK\Election\2016\ISJROV ElectionRes Measure.doc RESOLUTION NO. 2016-126 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI, CALLING AN ELECTION TO ASK THE VOTERS OF THE CITY OF LODI TO APPROVE A SPECIAL TRANSACTIONS AND USE TAX OF ONE-EIGHTH CENT PER DOLLAR (0.125%) FOR FIFTEEN (15) YEARS, WITH THE TAX REVENUE TO BE USED EXCLUSIVELY FOR PARK REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES, AND TO BE REVIEWED AND REPORTED ON BY AN INDEPENDENT CITIZENS OVERSIGHT COMMITTEE, AND REQUESTING THAT THE BOARD OF SUPERVISORS FOR THE COUNTY OF SAN JOAQUIN CONSOLIDATE THE ELECTION WITH THE ESTABLISHED GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2016, AND DIRECT THE COUNTY REGISTRAR OF VOTERS TO CONDUCT THE ELECTION ON THE CITY'S BEHALF WHEREAS, additional revenue is necessary to fund park repairs, maintenance, and upgrades, including such items as reconstructing parking Tots and roadways at Lodi Lake and other City parks; rehabilitating and building trails; renovating playgrounds; replacing and installing drinking fountains and park furniture; improving water efficiency and making other park infrastructure improvements; WHEREAS, the City's adopted budget for FY2016/17 is only able to provide for minimal funding for the repair and maintenance of City parks, and continues to defer capital investment needs. The City's financial forecast over the next five years continues to reflect a lack of resources available to address park repairs, maintenance, improvements, and upgrades; WHEREAS, the City Council may propose that voters approve a special transactions and use tax to raise additional funds for park repairs, maintenance, and upgrades; WHEREAS, a special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes; WHEREAS, pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two-thirds vote of all members of the City Council and the tax subsequently is approved by a two-thirds vote of qualified voters of the City voting in an election; WHEREAS, a special transaction and use tax of one eighth of one percent (0.125%) per dollar would generate sufficient revenue to begin addressing maintenance and repair work in City parks, and to make improvements, and upgrades to park amenities and park infrastructure throughout the City. The special tax would generate an estimated $1,400,000 in annual revenue and an estimated $21,000,000 over fifteen (15) years; WHEREAS, Government Code Section 53724(c) require that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote; WHERAS, November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure; WHEREAS, the City Council of the City of Lodi desires to submit to the voters at the statewide general election to be held on Tuesday, November 8, 2016, an ordinance entitled "Special Transactions and Use Tax Ordinance for Parks Repairs, Maintenance, Improvements, and Upgrades"; and WHEREAS, the City Council is authorized and directed by statute to submit the ordinance to the voters. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LODI DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. That the foregoing recitals are true and correct and are hereby adopted by the City Council. SECTION 2. That pursuant to Government Code Section 53724(c) requiring that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote, there is called and ordered to be held in the City of Lodi, an election on Tuesday, November 8, 2016, for the purpose of submitting the following ordinance: Shall the City of Lodi replace outdated playgrounds, repair eroded riverbank at Lodi Lake, repair and expand park trail systems, replace park restrooms and drinking fountains, and improve park parking lots, roadways, landscaping, and infrastructure, by enacting a one-eighth cent per dollar (0.125%) transactions and use ("sales") tax, estimated to raise $1,400,000 annually, to sunset in fifteen (15) years, with all revenue exclusively applied to these specific purposes, subject to citizen oversight and annual audit? YES NO SECTION 3. That the text of the ordinance submitted to the voters is attached as Exhibit A, and made a part hereof as though fully set forth herein. SECTION 4. That the vote requirement for the ordinance to pass is an affirmative vote of two-thirds of the voters of the City casting votes. SECTION 5. That the ballots to be used at the election shall be in form and content as required by the laws of the State of California. SECTION 6. That the City Clerk is authorized, instructed and directed to coordinate with the San Joaquin County Registrar of Voters 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. The City will reimburse the County for the actual costs incurred by the County Elections Official in conducting the election. SECTION 7. The City Clerk is hereby authorized to cause notice of the ordinance to be published one in the Lodi News Sentinel in accordance with Elections Code section 12111 and Government Code section 6061. SECTION 8. The City Manager is authorized and directed to expend the necessary funds to pay for the City's cost of placing the ordinance on the election ballot. SECTION 9. That pursuant to Election Code section 10242, 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 8:00 o'clock p.m. of the same day when the polls shall be closed, except as provided in Elections Code section14401. SECTION 10. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by the laws of the State of California for holding municipal elections. SECTION 11. 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 the laws of the State of California. SECTION 12. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. SECTION 13. That the City Clerk is authorized to certify the adoption of this Resolution and transmit a certified copy to the San Joaquin County Board of Supervisors and the San Joaquin County Registrar of Voters. Dated: July 6, 2016 I hereby certify that Resolution No. 2016-126 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 6, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, and Mayor Chandler NOES: COUNCIL MEMBERS — Nakanishi ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None ATTEST: Ye. 7 JENNIFER M. FERRAIOLO City Clerk (SEAL) Approved as to Form: JANICE D. MAGDICH City Attorney ,74,a„/, MARK CHANDLER Mayor 2016-126 EXHIBIT A ORDINANCE NO. 1925 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI AMENDING LODI MUNICIPAL CODE TITLE 3 - REVENUE AND FINANCE BY ADDING CHAPTER 3.30 "SPECIAL TRANSACTION AND USE TAX FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES" IMPOSING A SPECIAL ONE-EIGHTH CENT PER DOLLAR (0.125%) TRANSACTIONS AND USE TAX FOR PARK REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES TO BE COLLECTED AND ADMINISTERED BY THE STATE BOARD OF EQUALIZATION SUBJECT TO VOTER APPROVAL The City Council of the City of Lodi hereby finds as follows: A. Additional revenue is necessary to fund park repairs, maintenance, and upgrades, including such items as reconstructing parking lots and roadways at Lodi Lake and other City parks; rehabilitating and building park trails; renovating playgrounds; replacing and installing drinking fountains and park furniture; improving water efficiency and making other park infrastructure improvements. B. The City's adopted budget for FY2016/17 is only able to provide for minimal funding for the repair and maintenance of City parks, and continues to defer capital investment needs. The City's financial forecast over the next five years continues to reflect a lack of resources available to address park repairs, maintenance, improvements, and upgrades. C. The City Council may propose that voters approve a special transactions and use tax (sales tax) to raise additional funds for park repairs, maintenance, and upgrades. D. A special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes. E. Pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two- thirds vote of all members of the City Council and the tax subsequently is approved by a two- thirds vote of qualified voters of the City voting in an election. F. A special transactions and use tax of one eighth of one percent (0.125%) will generate sufficient revenue to enable the City to begin addressing maintenance and repair work in City parks, and to make improvements, and upgrades to park amenities and park infrastructure throughout the City. The special tax would generate an estimated $1,400,000 in annual revenue and an estimated $21,000,000 over fifteen (15) years. G Government Code Section 53724(c) requires that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote. H. November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure. 1 NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF LODI: Section 1. Lodi Municipal Code Title 3 - Revenue and Finance is hereby amended by adding Chapter 3.30 "Special Transaction and Use Tax for Parks Repairs, Maintenance, Improvements, and Upgrades" and shall read as follows: CHAPTER 3.30 SPECIAL TRANSACTIONS AND USE TAX ORDINANCE FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES Sections: 3.30.010 Title 3.30.020 Operative Date 3.30.030 Purpose 3.30.040 Contract with State 3.30.050 Transaction Tax Rate 3.30.060 Place of Sale 3.30.070 Use Tax Rate 3.30.080 Termination Date 3.30.090 Adoption of Provisions and State Law 3.30.100 Limitations on Adoption of State Law and Collection of Use Taxes 3.30.110 Permit Not Required 3.30.120 Exemptions and Exclusions 3.30.130 Amendments 3.30.140 Enjoining Collection Forbidden 3.30.150 Refunds and Credits; Suits and Legal Proceedings 3.30.160 Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan 3.30.170 Establishment of Special Parks Sales Tax Oversight Committee 3.30.180 Annual Audit and Report 3.30.010 Title. This ordinance shall be known as the City of Lodi Special Transactions and Use Tax Ordinance for Parks Repairs, Maintenance, Improvements, and Upgrades. The City of Lodi hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 3.30.020 Operative Date. "Operative date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 3.30.030 Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.91 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if two-thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. 2 B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 3.40.040 Contract with State. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.30.050 Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-eighth percent (0.125%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 3.30.060 Place of Sale. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3.30.070 Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one-eighth cent (0.125%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. 3.30.080. Termination Date, The authority to levy the tax imposed by this ordinance shall expire on the fifteenth anniversary of the operative date, unless extended by a two-thirds majority vote of the voters of the City. 3 3.30.090 Adoption of Provisions of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 3.30.100. Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, Victim Compensation and Government Claims Board, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.30.110. Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 3.30.120. Exemptions and Exclusions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax levied by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state -administered transactions or use tax. 4 B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out -of -City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out -of -City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax levied by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state -administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, 5 the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.30.130. Amendments. A. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. B. Pursuant to Elections Code Section 9217 or any successor statute, the City Council may amend or repeal this ordinance and any of its exhibits, but not increase or extend the rate of tax levied herein, without a vote of the people. 6 3.30.140 Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.30.150. Refunds and Credits; Suits and Legal Proceedings. A. Refunds of and credits for any tax paid pursuant to this Chapter may be made only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. B. Suits and proceedings for the recovery of any amount alleged to have been erroneously or illegally determined or collected pursuant to this Chapter may be maintained in any court only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. A judgment shall not be rendered in favor of the plaintiff in any action brought against the State Board of Equalization to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount. 3.30.160. Special Fund: Restricted Use of Tax Proceeds and Expenditure Plan. All proceeds of the special tax levied and imposed by this ordinance shall be accounted for and paid into a special fund or account designated for use by the City of Lodi only for parks services as set forth in the Parks Expenditure Plan for the administration and expenditure of the tax revenue, attached to this ordinance as Exhibit 1, and made a part hereof as though fully set forth herein. The Parks Expenditure Plan may be amended from time to time by a majority vote of the City Council, as long as the fund continues to be utilized for parks repairs, maintenance, and upgrades. No revenues collected pursuant to the tax levied by this ordinance may be spent on General Fund operating expenses in effect at the time this ordinance becomes effective, or projects that are not a part of the Parks Expenditure Plan. Revenues collected by this ordinance shall supplement, rather than replace, existing City expenditures for parks services as reflected in the FY 2016/2017 budget. 3.30.170 Establishment of Special Parks Sales Tax Oversight Committee. A. Committee Established. A Citizens' Oversight Committee is hereby established in the City of Lodi to monitor the expenditures of revenue collected pursuant to this Ordinance only and to report to the People and the City Council. B. Selection of Members. Members of the Citizens' Oversight Committee shall be appointed by the City Council. The Committee shall consist of five members. Members of the Citizens' Oversight Committee shall not be current City of Lodi employees, officials, contractors, or vendors of the City. Past employees, officials, contractors, and vendors shall be eligible to serve on the Committee, provided that there are no conflicts of interest as determined by the City Attorney. Of the members of the Committee first appointed, three members shall be appointed for terms of two years and two members shall be appointed for terms of three years. Their successors shall be appointed for terms of three years. No member may serve more than two consecutive three-year terms. The City Council shall solicit members of the Citizens' Oversight Committee, through an open application process that is promoted through the City's adopted recruiting process. Any resident of Lodi is eligible to apply for Committee membership, subject to the restrictions specified above. All applications will be reviewed by the City Council, 7 which will have the authority to make final decisions regarding Committee composition, subject to the guidelines in this Ordinance. C. Purposes and Jurisdiction. The Citizens' Oversight Committee shall conduct an annual review of expenditures of revenue collected pursuant to this Ordinance to determine whether such funds are expended for the purposes specified in the then current Parks Expenditure Plan. Committee members may review the annual financial audit performed by an independent auditor during the review process. The Citizens' Oversight Committee shall issue an annual report on their findings to the City Council and to the People. The Citizens' Oversight Committee annual report is subject to review and approval of the City Council. The Committee shall confine its review specifically to revenues generated pursuant to this Ordinance and the expenditure of those revenues. The Committee shall serve in an advisory -only role to the City Council. Committee members shall not play a formal or informal role in contracting, project management, or any other aspect of the parks repairs, maintenance and upgrades funded by this Ordinance. The Committee is not charged with decision-making on spending priorities; schedules; project details; funding source decisions; financing plans, including changes or revisions to the Parks Expenditure Plan; or tax rate assumptions. The Committee shall have no jurisdiction other than that delegated to it by the People pursuant to this Ordinance. The Lodi City Manager or the City Manager's designee shall provide reasonable administrative or technical assistance required by the Committee to fulfill its responsibilities or publicize its findings. D. Meetings. The Citizens' Oversight Committee shall meet annually with specific meeting dates to be determined by Committee members. Citizens' Oversight Committee meetings are subject to the Brown Act. Meetings must be noticed and open to the public. Committee minutes and reports are a matter of public record, and must be posted on a web site provided by the City. Additional meetings may be scheduled by the Committee as necessary. All Committee members shall attend a training and orientation session prior to the first regular Committee meeting. Committee members are expected to attend all regular meetings. Failure to attend two consecutive meetings may result in removal from the Committee at the discretion of the City Council. E. Committee Operations. The Citizens' Oversight Committee will select members to serve as Chair and Vice Chair of the Committee. A City staff person will be appointed by the City Manager, or the City Manager's designee, to serve as Secretary. The Secretary will be responsible for preparing, posting and distributing agendas and taking minutes at each meeting. Approved minutes shall be made available to the public. Committee decisions, positions, findings and procedures shall require a simple majority vote of those Committee members in attendance. The quorum requirement for any meeting shall be a minimum of three (3) members. F. Vacancies. Committee members may be removed from the Committee only by the City Council for repeated absences at committee meetings, malfeasance, failure to meet the qualifications set forth in this Section, or for inability or unwillingness to fulfill the duties of a Committee member. In the event of removal, resignation, or death, the City Council shall appoint a person to fill the vacant seat. G. Miscellaneous. Subject to the restrictions specifically addressed in this Section, the Committee may draft and adopt its own standard procedures and by-laws by majority vote. All Citizens' Oversight Committee procedures and by-laws remain subject to review and approval of the City Council. 8 3.30.180 Annual Audit and Report. A. The revenue from the tax imposed by this Chapter shall be subject to the annual audit performed by the City's independent auditor of the City's books, records, accounts, and fiscal procedures and which is reported in the City's Comprehensive Annual Financial Report. B. In addition to the annual audit, an Annual Review Report shall be prepared by the City, setting forth the amount of revenue received from the tax imposed by this Chapter, amount of disbursements, and description of expenditures. The purpose of the report is to assure accountability and the proper disbursement of the revenue from the tax imposed by this Chapter. The Annual Review Report shall be filed in the Office of the City Clerk not later than January 31st following the fiscal year in which the tax is collected. Section 2. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a mariner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. Section 3. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council of the City of Lodi hereby declares that they would have adopted each and every provision of this ordinance regardless of the invalidity of any other provision. Section 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. Section 5. Compliance with the California Environmental Quality Act. The approval of this ordinance is exempt from the California Environmental Quality Act (Public Resources Code Sections 21000, et seq., "CEQA" and 14 Cal. Code of Regs. Sections 15000 et seq., "CEQA Guidelines"). This ordinance imposes a special sales tax that can be used for any legitimate governmental purposes as specified in this ordinance. It is not a commitment to any specific project that may result in a potentially significant physical impact on the environment. Section 6. Codification. Subject to the voter approval, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this ordinance in the Lodi Municipal Code. Section 7. Effective Date. If this ordinance is approved by two-thirds of the voters voting on the issue at the November 8, 2016 election, pursuant to Elections Code Section 9217, this ordinance shall become effective ten (10) days after the City Council declares the results of the election. Section 8. Certification and Publication. The City Clerk shall certify the final approval of this ordinance, publish the same as required by law, and forward a certified copy of the adopted ordinance to the State Board of Equalization. 9 Approved this day of July, 2016 MARK CHANDLER Mayor ATTEST: JENNIFER M. FERRAIOLO City Clerk State of California County of San Joaquin, ss. I, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1925 was introduced at a regular meeting of the City Council of the City of Lodi held July 6, 2016, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held July , 2016, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — 1 further certify that Ordinance No. 1925 was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. Approved to Form: JANICE D. MAGDICH City Attorney 10 JENNIFER M. FERRAIOLO City Clerk EXHIBIT 1 TO ORDINANCE ADDING CHAPTER 3.30 "SPECIAL TRANSACTION AND USE TAX FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES" PARKS SPENDING PLAN hemp Parks spending plan: One-eighth cent, 15 years 1 Lodi Lake Park South Shore Reconstruction 2 Lodi Lake Erosion Control 3 Candy Cane Park Renovations 4 Legion Park improvements 5 Emerson Park playground renovarons/field improvements 6 tail laky Park Nath Side 7Mtytound 7 Lodi Lake Park North Pavement e Parks Annex roof replacement 9 Nature Area t 7 rehabilhation 10 Dog Park amenlees 11 Beckman Park playground installation 12 Replaster Blakely Park pool/repairs 15 Lodl Lake Park South Shore Restroom replacement 14 Peterson Park upgrades 15 Solas Park sports lighting replacement 16 Henry Gloves Park playground replacement 17 English Oaks Common playground/picnic 18 Lodi Lake riverfronrtrail 19 6tarny00d Park Mermen. demerftepkenemen, 20 Century Meadows Park playground surface 21 Lodi Lake Park Master Plan Improvements TBD 22 Vinewo0d Park irrigation system upgrades 23 Hutchins Street Square Pool HVACsystem 24 English Oaks downsize playground area, wall repair 25 Blakely Park aquatics restroom renovation/field repairs 26 Renese lurwrcenteParkrevttwn 27 Salas Park parking lot reconstruction 28 Kofu Park repairs 29 Softball Complex renovations 30 Replaster/mechankal replacement Lake wading pool 31 Beckman Park Irrigation booster pump 32 Construct splash pad at location TBD 33 2upo Field lighting replacement 34 Chapman Field repairs 35 2upo Field seating repairs 36 Aquatic facility mechanical replacement 37 New playground at Borchardt and Vlnewood parks 36 Beckman Park picnic shelter Century Park playground replacement 59 141489 Ma Lakexark Nerkh rgapepr4 40 Salm Park Playground replacement 41 Lawrence Park playground replacement 42 Paceradn Parkplyy8rrndregh9a0wtt 43 2upo Field outfield turf renovations 44 Replace Emerson Park restrooms 45 P0ebb6Aeithae1Csh4ple9pNv*rMftp 46 Hale Park Community/Restroom renovations 47 Blakely Park playground/sports court replacement 48 Hale Park playground replacement 49 Century Meadows playground replacement 50 Replace Hutchins Street Square Pool finer 51 Hutchins Street Square playground replacement 52 Kofu Park reseroom/mn ession renovations 53 Katzaklan Park restroom/playground renovation 54 Van Buskirk Park playground replacement 55 Lawrence Park renovations, TBD 56 Hale Park parking lot reconstruction 57 Salm Park restroom renovations 58 Solas Park bleacher seating repairs 59 Replace worn playground apparatus/fall zones 60 Park frorutvref/ 0000 repairs 8. replazerrrne 61 Replace/repair/install drinking fountains 62 Treesafety (pruning, removal) 63 Turfmalntenanea/repurpose 64 Grape Bowl Improvements (set-aside) 65 Skate Park annual repairs 66 Park Irrigation system repairs/upgrades 67 Parking Mt m3Nitr4pCeftenoV ciarer (744•Ndel Total 2017/18 2018/19 5800,000 5150,000 51,000,000 $115,000 $100,000 3175,000 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 Pro)ecttotals 5800,000 52,390,003 5115,000 5225,000 5325,000 3175,000 5350,000 5200000 5200,000 5750,000 5750,000 505.064 $85,000 5180,000 5180,000 525,030 525,000 $200,000 5200,000 $80,000 380,000 5160,000 5400,000 5400,000 545,000 541,000 5300,000 3300,000 5180,000 5225,000 5405,000 5245,000 5245,000 $675,000 $675,000 5255,930 5205,000 555,000 555,000 5500,000 5500,000 5500,000 5500,000 52,000,000 5150,000 5150,000 5350,000 5350,000 355,000 555,000 580,000 $405,500 5485,000 510,000 510,000 3500,000 5500,000 5142,000 5142,000 5575,000 5575,000 520,000 520,000 560,000 560,000 5200,030 5200,000 5150,000 3150,000 5160,000 3100,000 5450,000 5450,000 $40,000 540,000 5200,030 5200,000 5400,000 5225,000 5225,000 5180,000 5160,000 5400,000 3400,000 5225,000 5225,000 5175,000 3175,000 5225,000 5220,000 585,000 505,000 5300,000 3300,000 580,003 580,000 51,240,003 5400,000 5300,000 5180,000 5200,000 575,000 $225,000 5150,040 5225,000 55,000 35,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 53,000 55,000 55,000 55,000 55,000 55,000 55,003 535,000 535,000 530,000 530,000 550,000 335,000 540,000 535,000 540,000 510,093 535,000 540,000 533,000 535,000 505,000 510,000 510,000 510,000 510,000 510,000 510,000 310,000 510,000 510,000 510,000 510,000 510,000 510,000 510,000 510,000 575,003 550,000 540,000 540,000 $40,030 340,003 540,000 540,000 340,000 540,003 540,000 540,000 540,000 540,003 540,000 520,000 520,000 520,000 520000 530,000 520,000 520,000 540,000 5120,930 5115,000 5100,000 5120,000 520,000 $20,000 520,000 550,000 510,003 350,000 550,000 550,030 550,003 550,000 550,003 550,003 350,040 550,003 $50,000 550,003 350,000 550,000 55,000 35,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 35.000 55,000 535,000 525,000 535,000 $15,000 538,000 510,000 575,000 5100,000 550,000 035,000 525,000 325,003 525,000 525,000 525,000 525,000 525,000 525,003 525,003 525,000 525,000 525,000 5400,000 5300,000 5180,000 52[0,000 575,000 5225,000 5150,000 5225,000 50 $0 50 50 55,000 575,000 5500,000 5150,000 3645,000 5705,000 5750,000 575,000 3438,000 $000,000 $1,400,000 51,400,000 51,400,000 51,400,000 51,400,000 51,400,000 51,400,000 31,400,000 51,400,000 $1,400,000 51,400,000 31,400,005 51,400,000 31,400,000 31,400,000 521,000,000 RESOLUTION NO. 2016-127 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI, CALLING AN ELECTION TO ASK THE VOTERS OF THE CITY OF LODI TO APPROVE A SPECIAL TRANSACTIONS AND USE TAX OF ONE- QUARTER CENT PER DOLLAR (0.25%) FOR FIFTEEN (15) YEARS, WITH THE TAX REVENUE TO BE USED EXCLUSIVELY FOR PUBLIC SAFETY, AND TO BE REVIEWED AND REPORTED ON BY AN INDEPENDENT CITIZENS OVERSIGHT COMMITTEE, AND REQUESTING THAT THE BOARD OF SUPERVISORS FOR THE COUNTY OF SAN JOAQUIN CONSOLIDATE THE ELECTION WITH THE ESTABLISHED GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2016, AND DIRECT THE COUNTY REGISTRAR OF VOTERS TO CONDUCT THE ELECTION ON THE CITY'S BEHALF WHEREAS, additional revenue is necessary to increase the number of sworn Lodi police officers to reduce crime and public nuisances associated with the effects of Assembly Bill 109 (Public Safety Realignment) and other criminal activity within the City, as well as increase fire staffing levels to bring downtown Fire Engine 1 back into service, and enhance the training of public safety (police and fire) personnel; WHEREAS, the City's adopted budget for FY2016/17 does not have revenue sufficient to increase staffing levels within the police and fire departments or fund advanced training for public safety personnel. The City's financial forecast over the next five years continues to reflect a lack of resources available to increase public safety staffing levels or increase the training budget for public safety personnel; WHEREAS, the City Council may propose that voters approve special transactions and use tax (sales tax) to raise additional funds to increase the number of sworn police officers, hire an additional part-time youth outreach worker to conduct gang intervention and prevention, increase fire staffing levels to put downtown Fire Engine 1 into service, as well to enhance the training of public safety personnel; WHEREAS, a special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes; WHEREAS, pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two-thirds vote of all members of the City Council and the tax subsequently is approved by a two-thirds vote of qualified voters of the City voting in an election; WHEREAS, a special transaction and use tax of one eighth of one quarter (0.25%) per dollar would generate sufficient revenue to increase the number of police officers, fund their safety equipment, and hire a part-time youth outreach worker to conduct gang intervention and prevention. In addition, downtown Fire Engine 1 could be returned to service by increasing staffing, and provide advance training to public safety personnel. The special tax would generate an estimated $2,800,000 in additional revenue annually, assuming taxable sales continue at their estimated rate, to be distributed 64% to Police (an estimated $1,792,000 per year) and 36% to Fire (an estimated $1,008,000 per year), (cumulatively, an estimated $26,880,000 to Police and $15,120,000 to Fire over fifteen years); WHEREAS, Government Code Section 53724(c) require that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote; WHERAS, November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure; WHEREAS, the City Council of the City of Lodi desires to submit to the voters at the statewide general election to be held on Tuesday, November 8, 2016, an ordinance entitled "Special Transactions and Use Tax Ordinance for Public Safety"; and WHEREAS, the City Council is authorized and directed by statute to submit the ordinance to the voters. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LODI DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. That the foregoing recitals are true and correct and are hereby adopted by the City Council. SECTION 2. That pursuant to Government Code Section 53724(c) requiring that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote, there is called and ordered to be held in the City of Lodi, an election on Tuesday, November 8, 2016, for the purpose of submitting the following ordinance: Shall the City of Lodi fight crime and expand programs to reduce gang YES violence by hiring additional police and a gang intervention worker. restore downtown Fire Engine 1 service, and increase training, by enacting a one-quarter cent per dollar (0.25%) transactions and use ("sales") tax, estimated to raise $2,800,000 annually, 64% to police, NO 36% to tire, sunset in 15 years, all revenue exclusively applied to these specific purposes, subject to citizen oversight and annual audit? SECTION 3. That the text of the ordinance submitted to the voters is attached as Exhibit A, and made a part hereof as though fully set forth herein. SECTION 4. That the vote requirement for the ordinance to pass is an affirmative vote of two-thirds of the voters of the City casting votes. SECTION 5. That the ballots to be used at the election shall be in form and content as required by the laws of the State of California. SECTION 6. That the City Clerk is authorized, instructed and directed to coordinate with the San Joaquin County Registrar of Voters 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. The City will reimburse the County for the actual costs incurred by the County Elections Official in conducting the election. SECTION 7. The City Clerk is hereby authorized to cause notice of the ordinance to be published one in the Lodi News Sentinel in accordance with Elections Code section 12111 and Government Code section 6061. SECTION 8. The City Manager is authorized and directed to expend the necessary funds to pay for the City's cost of placing the ordinance on the election ballot. SECTION 9. That pursuant to Election Code section 10242, 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 8:00 o'clock p.m. of the same day when the polls shall be closed, except as provided in Elections Code section14401. SECTION 10. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by the laws of the State of California for holding municipal elections. SECTION 11. 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 the laws of the State of California. SECTION 12. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. SECTION 13. That the City Clerk is authorized to certify the adoption of this Resolution and transmit a certified copy to the San Joaquin County Board of Supervisors and the San Joaquin County Registrar of Voters. Dated: July 6, 2016 I hereby certify that Resolution No. 2016-127 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 6, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, and Mayor Chandler NOES: COUNCIL MEMBERS — Nakanishi ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None MARK CHANDLER Mayor ATTEST: r NIFER �; FERRAIOLO City Clerk (SEAL) Approved as to Form: JANICED. MAGDICH City Attorney 2016-127 EXHIBIT A ORDINANCE NO. 1926 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI AMENDING LODI MUNICIPAL CODE TITLE 3 - REVENUE AND FINANCE BY ADDING CHAPTER 3.40 "SPECIAL TRANSACTION AND USE TAX FOR PUBLIC SAFETY" IMPOSING A SPECIAL ONE- QUARTER CENT PER DOLLAR (0.25%) TRANSACTIONS AND USE TAX TO INCREASE STAFFING FOR POLICE AND FIRE AND ENHANCE TRAINING FOR PUBLIC SAFETY PERSONNEL, TO BE COLLECTED AND ADMINISTERED BY THE STATE BOARD OF EQUALIZATION SUBJECT TO VOTER APPROVAL The City Council of the City of Lodi hereby finds as follows: A. Additional revenue is necessary to increase the number of sworn Lodi police officers to reduce crime and public nuisances associated with the effects of Assembly Bill 109 (Public Safety Realignment) and other criminal activity within the City, as well as increase fire staffing levels to bring downtown Fire Engine 1 back into service, and enhance the training of public safety (police and fire) personnel. B. The City's adopted budget for FY2016/17 does not have revenue sufficient to increase staffing levels within the police and fire departments or fund advanced training for public safety personnel. The City's financial forecast over the next five years continues to reflect a lack of resources available to increase public safety staffing levels or increase the training budget for public safety personnel. C. The City Council may propose that voters approve special transactions and use tax (sales tax) to raise additional funds to increase the number of sworn police officers, hire an additional part-time youth outreach worker to conduct gang intervention and prevention, increase fire staffing levels to put downtown Fire Engine 1 into service, as well to enhance the training of public safety personnel. D. A special transactions and use tax is a type of special tax that may be imposed by the City Council to achieve these purposes. E. Pursuant to Section 7285.91 of the Revenue and Tax Code, the City Council may impose a special transactions and use tax for general purposes at a rate of one-eighth of one percent (0.125%) or a multiple thereof, if the ordinance proposing the tax is approved by a two- thirds vote of ail members of the City Council and the tax subsequently is approved by a two- thirds vote of qualified voters of the City voting in an election. F. A special transactions and use tax of one-quarter of one percent (0.25%) would generate sufficient revenue to increase the number of police officers, fund their safety equipment, and hire a part-time youth outreach worker to conduct gang intervention and prevention. In addition, downtown Fire Engine 1 could be returned to service by increasing staffing, and provide advance training to public safety personnel. The special tax would generate an estimated $2,800,000 in additional revenue annually, assuming taxable sales continue at their estimated rate, to be distributed 64% to Police (an estimated $1,792,000 per year) and 36% to Fire (an estimated $1,008,000 per year), (cumulatively, an estimated $26,880,000 to Police and $15,120,000 to Fire over fifteen years). 1 G. Government Code Section 53724(c) requires that an election on a special tax be consolidated with a statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote. H. November 8, 2016 is the date of the statewide general election, and is the next election date eligible for inclusion of this special tax measure. NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF LODI: Section 1. Lodi Municipal Code Title 3 - Revenue and Finance is hereby amended by adding Chapter 3.40 "Special Transaction and Use Tax for Public Safety" and shall read as follows: CHAPTER 3.40 SPECIAL TRANSACTIONS AND USE TAX ORDINANCE FOR PUBLIC SAFETY Sections 3.40.010 Title 3.40.020 Operative Date 3.40.030 Purpose 3.40.040 Contract with State 3.40.050 Transaction Tax Rate 3.40.060 Place of Sale 3.40.070 Use Tax Rate 3.40.080 Termination Date 3.40.090 Adoption of Provisions and State Law 3.40.100 Limitations on Adoption of State Law and Collection of Use Taxes 3.40.110 Permit Not Required 3.40.120 Exemptions and Exclusions 3.40.130 Amendments 3.40.140 Enjoining Collection Forbidden 3.40.150 Refunds and Credits; Suits and Legal Proceedings 3.40.160 Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan 3.40.170 Establishment of Special Public Safety Sales Tax Oversight Committee 3.40.180 Annual Audit and Report 3.40.010 Title. This ordinance shall be known as the City of Lodi Special Transactions and Use Tax Ordinance for Public Safety. The City of Lodi hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 3.40.020 Operative Date. "Operative date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 3.40.030 Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and 2 Section 7285.91 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if two-thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 3.40.040 Contract with State. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.40.050 Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-quarter percent (0.25%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 3.40.060 Place of Sale. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3.40.070 Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one-quarter cent (0.25%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. 3 3.40.080. Termination Date. The authority to levy the tax imposed by this ordinance shall expire on the fifteenth anniversary of the operative date, unless extended by a two-thirds majority vote of the voters of the City. 3.40.090 Adoption of Provisions of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 3.40.100. Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, Victim Compensation and Government Claims Board, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.40.110. Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 4 3.40.120. Exemptions and Exclusions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax levied by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state -administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out -of -City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out -of -City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax levied by this ordinance, the storage, use or other consumption in this City of tangible personal property: 5 1. The gross receipts from the sale of which have been subject to a transactions tax under any state -administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.40.130. Amendments. A. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall 6 automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. B. Pursuant to Elections Code Section 9217 or any successor statute, the City Council may amend or repeal this ordinance and any of its exhibits, but not increase or extend the rate of tax levied herein, without a vote of the people. 3.40.140 Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.40.150. Refunds and Credits; Suits and Legal Proceedings. A. Refunds of and credits for any tax paid pursuant to this Chapter may be made only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. B. Suits and proceedings for the recovery of any amount alleged to have been erroneously or illegally determined or collected pursuant to this Chapter may be maintained in any court only as provided for in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. A judgment shall not be rendered in favor of the plaintiff in any action brought against the State Board of Equalization to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount. 3.40.160. Special Fund; Restricted Use of Tax Proceeds and Expenditure Plan. All proceeds of the special tax levied and imposed by this ordinance shall be accounted for and paid into a special fund or account designated for use by the City of Lodi only for public safety as set forth in the Public Safety Expenditure Plan for the administration and expenditure of the tax revenue, attached to this ordinance as Exhibit 1, and made a part hereof as though fully set forth herein. The Public Safety Expenditure Plan may be amended from time to time by a majority vote of the City Council, as long as the fund continues to be used for public safety. No revenues collected pursuant to the tax levied by this ordinance may be spent on General Fund operating expenses in effect at the time this ordinance becomes effective, or projects that are not a part of the Public Safety Expenditure Plan, absent a corresponding decline in General Fund revenues or increase in non -discretionary General Fund expenses ("Financial Contingencies"). However, revenues may be spent on staffing in excess of those the General Fund can support in the event of Financial Contingencies. Revenues collected by this ordinance shall supplement, rather than replace, existing City expenditures for public safety (police and fire) as reflected in the FY 2016/2017 budget, absent a corresponding decline in General Fund revenues or increase in non -discretionary General Fund expenses. 3.40.170 Establishment of Special Public Safety Sales Tax Oversight Committee. A. Committee Established. A Citizens' Oversight Committee is hereby established in the City of Lodi to monitor the expenditures of revenue collected pursuant to this Ordinance only and to report to the People and the City Council. 7 B. Selection: of Members. Members of the Citizens' Oversight Committee shall be appointed by the City Council. The Committee shall consist of five members. Members of the Citizens' Oversight Committee shall not be current City of Lodi employees, officials, contractors, or vendors of the City. Past employees, officials, contractors, and vendors shall be eligible to serve on the Committee, provided that there are no conflicts of interest as determined by the City Attorney. Of the members of the Committee first appointed, three members shall be appointed for terms of two years and two members shall be appointed for terms of three years. Their successors shall be appointed for terms of three years. No member may serve more than two consecutive three-year terms. The City Council shall solicit members of the Citizens' Oversight Committee, through an open application process that is promoted through the City's adopted recruiting process. Any resident of Lodi is eligible to apply for Committee membership, subject to the restrictions specified above. All applications will be reviewed by the City Council, which will have the authority to make final decisions regarding Committee composition, subject to the guidelines in this Ordinance. C. Purposes and Jurisdiction. The Citizens' Oversight Committee shall conduct an annual review of expenditures of revenue collected pursuant to this Ordinance to determine whether such funds are expended for the purposes specified in the then current Public Safety Expenditure Plan. Committee members may review the annual financial audit performed by an independent auditor during the review process. The Citizens' Oversight Committee shall issue an annual report on their findings to the City Council and to the people. The Citizens' Oversight Committee annual report is subject to review and approval of the City Council. The Committee shall confine its review specifically to revenues generated pursuant to this ordinance and the expenditure of those revenues. The Committee shall serve in an advisory-only role to the City Council. Committee members shall not play a formal or informal role in the hiring, retention, or training of public safety personnel funded by this ordinance. The Committee is not charged with decision-making on spending priorities; schedules; staffing levels; funding source decisions; financing plans, including changes or revisions to the Public Safety Expenditure Plan; or tax rate assumptions. The Committee shall have no jurisdiction other than that delegated to it by the people pursuant to this ordinance. The Lodi City Manager or the City Manager's designee shall provide reasonable administrative or technical assistance required by the Committee to fulfill its responsibilities or publicize its findings. D. Meetings. The Citizens' Oversight Committee shall meet annually with specific meeting dates to be determined by Committee members. Citizens' Oversight Committee meetings are subject to the Brown Act. Meetings must be noticed and open to the public. Committee minutes and reports are a matter of public record, and must be posted on a web site provided by the City. Additional meetings may be scheduled by the Committee as necessary. AH Committee members shall attend a training and orientation session prior to the first regular Committee meeting. Committee members are expected to attend all regular meetings. Failure to attend two consecutive meetings may result in removal from the Committee at the discretion of the City Council. E. Committee Operations. The Citizens' Oversight Committee will select members to serve as Chair and Vice Chair of the Committee. A City staff person will be appointed by the City Manager, or the City Manager's designee, to serve as Secretary. The Secretary will be responsible for preparing, posting and distributing agendas and taking minutes at each meeting. Approved minutes shall be made available to the public. Committee decisions, positions, findings and procedures shall require a simple majority vote of those Committee members in attendance. The quorum requirement for any meeting shall be a minimum of three (3) members. F. Vacancies. Committee members may be removed from the Committee only by the City Council for repeated absences at committee meetings, malfeasance, failure to meet the 8 qualifications set forth in this Section, or for inability or unwillingness to fulfill the duties of a Committee member. In the event of removal, resignation, or death, the City Council shall appoint a person to fill the vacant seat. G. Miscellaneous Subject to the restrictions specifically addressed in this Section, the Committee may draft and adopt its own standard procedures and by-laws by majority vote. All Citizens' Oversight Committee procedures and by-laws remain subject to review and approval of the City Council. 3.40.180 Annual Audit and Report A. The revenue from the tax imposed by this Chapter shall be subject to the annual audit performed by the City's independent auditor of the City's books, records, accounts, and fiscal procedures and which is reported in the City's Comprehensive Annual Financial Report. B. In addition to the annual audit, an Annual Review Report shall be prepared by the City, setting forth the amount of revenue received from the tax imposed by this Chapter, amount of disbursements, and description of expenditures. The purpose of the report is to assure accountability and the proper disbursement of the revenue from the tax imposed by this Chapter. The Annual Review Report shall be filed in the Office of the City Clerk not later than January 31st following the fiscal year in which the tax is collected. Section 2. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. Section 3. Severability- If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council of the City of Lodi hereby declares that they would have adopted each and every provision of this ordinance regardless of the invalidity of any other provision. Section 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. Section 5. Compliance with the California Environmental Quality Act. The approval of this ordinance is exempt from the California Environmental Quality Act (Public Resources Code Sections 21000, et seq., "CEQA" and 14 Cal. Code of Regs. Sections 15000 et seq., "CEQA Guidelines"). This ordinance imposes a special sales tax that can be used for any legitimate governmental purposes as specified in this ordinance. It is not a commitment to any specific project that may result in a potentially significant physical impact on the environment. Section 6. Codification. Subject to the voter approval, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this ordinance in the Lodi Municipal Code. Section 7. Effective Date. If this ordinance is approved by two-thirds of the voters voting on the issue at the November 8, 2016 election, pursuant to Elections Code Section 9217, this 9 ordinance shall become effective ten (10) days after the City Council declares the results of the election. Section 8. Certification and Publication. The City Clerk shall certify the final approval of this ordinance, publish the same as required by law, and forward a certified copy of the adopted ordinance to the State Board of Equalization. Approved this day of July, 2016 MARK CHANDLER Mayor ATTEST: JENNIFER M. FERRAIOLO City Clerk State of California County of San Joaquin, ss. I, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1926 was introduced at a regular meeting of the City Council of the City of Lodi held July 6, 2016, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held July , 2016, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — I further certify that Ordinance No. 1926 was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. Approved to Form: JANICE D. MAGDICH City Attorney 10 JENNIFER M. FERRAIOLO City Clerk Exhibit 1 Public Safety Expenditure Plan The Public Safety sales tax is estimated to generate approximately $2,800,000 annually for a 15 year period. Revenue will be split 64% ($1,792,000) to Police and 36% ($1,008,000) to Fire. Estimated annual expenditures for each department are shown below. Police (64% of additional sales tax revenue) • Fund up to eight (8) additional sworn officers o Estimated cost FY 2016/17 - $1,376,072 (8 positions) • Fund up to two (2) part-time park rangers (sworn positions) o Estimated cost FY 2016/17 - $59,830 (2 positions) • Fund one (1) part-time Youth Outreach Coordinator o Estimated cost FY 2016/17 - $31,509 • Fund equipment for up to 10 sworn officers o Estimated cost FY 2016/17 - $107,750 • Balance of funds to be used for training of police personnel Fire (36% of additional sales tax revenue) • Increase funding for fire staffing to put downtown Engine 1 in service o Estimated cost FY 2016/17 - $798,929 • Balance of funds to be used for training of fire personnel o Estimated FY 2016/17 - $209,071 RESOLUTION NO. 2016-128 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI, SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING CITY MEASURES AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS FOR EACH CITY MEASURE TO BE SUBMITTED TO THE VOTERS AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2016 WHEREAS, a General Municipal Election is to be held in the City of Lodi, California, on November 8, 2016, at which there will be submitted to the voters the following measures: Shall the City of Lodi replace outdated playgrounds, repair eroded riverbank at Lodi Lake, repair and expand park trail systems, replace park restrooms and drinking fountains, and improve park parking Tots, roadways, landscaping, and infrastructure, by enacting a one-eighth cent per dollar (0.125%) transactions and use ("sales") tax, estimated to raise $1,400,000 annually, to sunset in fifteen (15) years, with all revenue exclusively applied to these specific purposes, subject to citizen oversight and annual audit? YES NO Shall the City of Lodi fight crime and expand programs to reduce gang violence by hiring additional police and a gang intervention worker, restore downtown Fire Engine 1 service, and increase training, by enacting a one-quarter cent per dollar (0.25%) transactions and use ("sales") tax, estimated to raise $2,800,000 annually, 64% to police, 36% to fire, sunset in 15 years, all revenue exclusively applied to these specific purposes, subject to citizen oversight and annual audit? YES NO NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LODI, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. That the City Council authorizes ALL members of the City Council to file written argument(s) In Favor or Against the above City ballot measures not exceeding 300 words each, 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 California Elections Code. The arguments may be changed or withdrawn until and including the date fixed by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk. 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. The arguments shall be accompanied by the "Form of Statement to be Filed by Author(s) of Argument". SECTION 2. That the City Council directs the City Clerk to transmit copies of each of the ballot measures to the City Attorney. The City Attorney shall prepare an impartial analysis for each measure not exceeding 500 words, pursuant to Section 9280 of the California Elections Code. The impartial analysis for each ballot measure shall be filed by the date set by the City Clerk for the filing of primary arguments. SECTION 3. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. Dated: July 6, 2016 I hereby certify that Resolution No. 2016-128 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 6, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None Th3:-EAAcGoe6 NNIFE'7 M. FERRAIOLO City Clerk (SEAL) 2016-128 RESOLUTION NO. 2016-129 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI, PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR CITY MEASURES SUBMITTED TO THE VOTERS AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2016 WHEREAS, Section 9282 of the Elections Code provides for written arguments to be filed in favor of or against city measures not to exceed 300 words in length; and WHEREAS, Section 9285 of the Elections Code authorizes the City Council, by majority vote, to adopt provisions to provide for the filing of rebuttal arguments, not to exceed 250 words in length, for city measures submitted at municipal elections; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LODI, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. That pursuant to Section 9285(a)(1) of the Elections Code, when the elections official has selected the arguments for and against the measure (not exceeding 300 words each) 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. Pursuant to Elections Code section 9285(a)(3), 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 two -hundred fifty (250) words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. A rebuttal argument may not be signed by more than five authors (Elections Code section 9285(a)(5)). The rebuttal argument(s) 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, no later than 10 days after the final date for filing direct arguments. The rebuttal argument(s) shall be accompanied by the "Form of Statement to be Filed by Author(s) of Argument". Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut. SECTION 2. That all previous resolutions providing for the filing of rebuttal arguments for city measures are repealed. SECTION 3. That the provisions of Section 1 shall apply only to the election to be held on November 8, 2016, and shall then be repealed. SECTION 4. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. Dated: July 6, 2016 hereby certify that Resolution No. 2016-129 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 6, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None ATTEST: kL- V t 2.CA,t Otll/A NNIFERLII. FERRAIOLO City Clerk (SEAL) --Rail /...1745t,I.LIZA MARK CHANDLER Mayor 2016-129 Please immediately confirm receipt of this fax by calling 333-6702 CITY OF LODI P. O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS SUBJECT: SUMMARY OF ORDINANCE NOS. 1922 THROUGH 1926 PUBLISH DATE: SATURDAY, JULY 9, 2016 LEGAL AD TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: LNS ACCT. #0510052 DATED: ORDERED BY: JENNIFER M. FERRAIOLO, CITY CLERK City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 THURSDAY, JULY 7, 2016 JENNIFER M. FERRAIOLO CITY CLERK ELA M.• RRIS PUTY Cl CLERK ELIZABETH BURGOS ADMINISTRATIVE CLERK Verify Appearance of this Legal in the Newspaper — Copy to File SEND PROOF OF ADVERTISEMENT. THANK YOU!! Emailed to the Sentinel at dianer@lodinews.com at (time) on _ (date) (pages) LNS Phoned to confirm receipt of all pages at (time) PMF ES (initials) N:\Administration\CLERK\OrdSummaries\Advins.doc CITY OF LODI ORDINANCE NO. 1922 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE TITLE 17 — DEVELOPMENT CODE — BY REPEALING AND RE-ENACTING CHAPTER 17.34, "SIGNS," IN ITS ENTIRETY. The purpose of this ordinance is to bring regulation of all temporary signage under the City development code. Introduced June 15, 2016. Adopted July 6, 2016, and effective August 5, 2016. AYES: Johnson, Kuehne, Mounce, Nakanishi, and Mayor Chandler; NOES: None; ABSENT: None. ORDINANCE NO. 1923 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE TITLE 9 — PUBLIC PEACE, MORALS, AND WELFARE — BY REPEALING CHAPTER 9.19, "POLITICAL SIGN REGULATIONS," IN ITS ENTIRETY. The purpose of this ordinance is to repeal political signage regulations in order to bring regulation of all temporary signage under the City development code. Introduced June 15, 2016. Adopted July 6, 2016, and effective August 5, 2016. AYES: Johnson, Kuehne, Mounce, Nakanishi, and Mayor Chandler; NOES: None; ABSENT: None. ORDINANCE NO. 1924 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 10.44 — STOPPING, STANDING, AND PARKING — BY REPEALING AND RE-ENACTING SECTION 10.44.040, "PARKING FOR CERTAIN PURPOSES PROHIBITED — DISPLAY OF 'FOR SALE' SIGNS ON VEHICLES, VESSELS, OR TRAILERS — RESTRICTIONS," IN ITS ENTIRETY. The purpose of this ordinance is to eliminate reference to signage and make it unlawful to park a vehicle, vessel, or trailer upon any public street, right-of- way, or public property, with limited exceptions, for the purpose of sale. Introduced June 15, 2016. Adopted July 6, 2016, and effective August 5, 2016. AYES: Johnson, Kuehne, Mounce, Nakanishi, and Mayor Chandler; NOES: None; ABSENT: None. ORDINANCE NO. 1925 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE TITLE 3 — REVENUE AND FINANCE — BY ADDING CHAPTER 3.30, "SPECIAL TRANSACTION AND USE TAX FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES," IMPOSING A SPECIAL ONE-EIGHTH CENT PER DOLLAR (0.125%) TRANSACTIONS AND USE TAX FOR PARK REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES TO BE COLLECTED AND ADMINISTERED BY THE STATE BOARD OF EQUALIZATION SUBJECT TO VOTER APPROVAL. The purpose of this ordinance is to place a one-eighth cent per dollar (0.125%) sales tax measure to rehabilitate the City's aging parks infrastructure on the November 8, 2016 general election ballot. Introduced July 6, 2016. Adoption to be considered July 20, 2016. AYES: Johnson, Kuehne, Mounce, and Mayor Chandler; NOES: Nakanishi; ABSENT: None. ORDINANCE NO. 1926 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE 3 — REVENUE AND FINANCE — BY ADDING CHAPTER 3.40, "SPECIAL TRANSACTION AND USE TAX FOR PUBLIC SAFETY," IMPOSING A SPECIAL ONE-QUARTER CENT PER DOLLAR (0.25%) TRANSACTIONS AND USE TAX TO INCREASE STAFFING FOR POLICE AND FIRE AND ENHANCE TRAINING FOR PUBLIC SAFETY PERSONNEL, TO BE COLLECTED AND ADMINISTERED BY THE STATE BOARD OF EQUALIZATION SUBJECT TO VOTER APPROVAL. The purpose of this ordinance is to place a one-quarter cent per dollar (0.25%) sales tax measure to increase Police and Fire staffing, return Engine No. 1 to service, and enhance training of public safety personnel on the November 8, 2016 general election ballot. Introduced July 6, 2016. Adoption to be considered July 20, 2016. AYES: Johnson, Kuehne, Mounce, and Mayor Chandler; NOES: Nakanishi; ABSENT: None. Jennifer M. Ferraiolo, City Clerk City of Lodi July 6, 2016 Certified copies of the full text of these ordinances are available in the office of the Lodi City Clerk. Please immediately confirm receipt of this fax by calling 333-6702 CITY OF LODI P. O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS SUBJECT: CITY OF LODI NOTICE OF ELECTION PUBLISH DATE: WEDNESDAY, JULY 13, 2016 LEGAL AD TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: LNS ACCT. #0510052 DATED: MONDAY, JULY 11, 2016 JENNIFER M. FERRAIOLO, CITY CLERK City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK 615\ P ELA M. F •3RIS DUTY CITY CLERK ELIZABETH BURGOS ADMINISTRATIVE CLERK Verify Appearance of this Legal in the Newspaper — Copy to File Emailed to the Sentinel at dianer@lodinews.com at (time) on — (date) (pages) LNS Phoned to confirm receipt of all pages at (time) _EB _PMF (initials) forms\advins.doc NOTICE OF ELECTION FOR MEASURES RELATING TO SPECIAL TRANSACTIONS AND USE TAX FOR PARKS AND PUBLIC SAFTEY NOTICE IS HEREBY GIVEN that a General Municipal Election will be held in the City of Lodi, California, on Tuesday, November 8, 2016, for the following measures: Shall the City of Lodi replace outdated playgrounds, repair eroded riverbank at Lodi Lake, repair and expand park trail systems, replace park restrooms and drinking fountains, and improve park parking lots, roadways, landscaping, and infrastructure, by enacting a one-eighth cent per dollar (0.125%) transactions and use ("sales") tax, estimated to raise $1,400,000 annually, to sunset in fifteen (15) years, with all revenue exclusively applied to these specific purposes, subject to citizen oversight and annual audit? YES NO NOTE: The full text of the tax measure is available for public examination in the City Clerk's Office. SPECIAL TRANSACTIONS AND USE TAX OF ONE-EIGHTH CENT PER DOLLAR FOR FIFTEEN YEARS, WITH THE TAX REVENUE TO BE USED EXCLUSIVELY FOR PARK REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES (Summary prepared by City Attorney) If 2/3 of the voters approve the tax measure, the local transactions and use tax ("sales tax") in the City of Lodi will temporarily increase from 8% to 8.125% from April 1, 2017 through March 31, 2032. The City estimates the tax will generate $1,400,000 annually. The measure requires the additional tax revenue be deposited into a special fund and be spent on repairs and maintenance in City parks, including the upgrading of park amenities and infrastructure, the reconstruction of park roadways and parking lots, rehabilitation of park trails, repair of erosion at Lodi Lake, replacement of playground equipment, renovation of park bathrooms, replacement of picnic tables, benches and drinking fountains, as specified in a detailed expenditure plan for the period 2017-2032. The measure requires the City's independent auditors to annually audit the collection, management, and expenditure of the additional tax revenue and establishes a citizen's oversight committee to review fund expenditures and report annually to the City Council. Shall the City of Lodi fight crime and expand programs to reduce gang violence by hiring additional police and a gang intervention worker, restore downtown Fire Engine 1 service, and increase training, by enacting a one-quarter cent per dollar (0.25%) transactions and use ("sales") tax, estimated to raise $2,800,000 annually, 64% to police, 36% to fire, sunset in 15 years, all revenue exclusively applied to these specific purposes, subject to citizen oversight and annual audit? YES NO NOTE: The full text of the tax measure is available for public examination in the City Clerk's Office. SPECIAL TRANSACTIONS AND USE TAX OF ONE-QUARTER CENT PER DOLLAR FOR FIFTEEN YEARS, WITH THE TAX REVENUE TO BE USED EXCLUSIVELY FOR PUBLIC SAFETY (Summary prepared by City Attorney) If the tax measure is approved by 2/3 of the voters, the local transactions and use tax ("sales tax") in the City of Lodi will temporarily increase from 8% to 8.25% from April 1, 2017 through March 31, 2032. The City estimates the tax will generate $2,800,000 annually. The measure requires the additional tax revenue be deposited into a special fund and be spent on increasing the number of police officers, fund their safety equipment, hire a part-time youth outreach worker to conduct gang intervention and prevention, return downtown Fire Engine 1 to service by increasing staffing, and provide additional training for public safety personnel. The measure requires the City's independent auditors to annually audit the collection, management, and expenditure of the additional tax revenue and establishes a citizen's oversight committee to review expenditures and annually report to the City Council. (The polls will be open between the hours of 7:00 a.m. and 8:00 p.m.) NOTICE TO VOTERS OF DATE AFTER WHICH NO ARGUMENTS FOR OR AGAINST CITY MEASURES MAY BE SUBMITTED TO THE CITY CLERK NOTICE IS FURTHER GIVEN that pursuant to Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, the legislative body of the City, or any member or members thereof authorized by the body, or any individual voter or bona fide association of citizens, or any combination of voters and associations, may file a written argument, not to exceed 300 words in length, accompanied by 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, for or against the City measures. NOTICE IS FURTHER GIVEN that, based upon the time reasonably necessary to prepare and print the arguments and sample ballots for the election, the City Clerk has fixed July 20, 2016, during normal office hours, as posted, as the date after which no arguments for or against the City measures may be submitted to the Clerk for printing and distribution to the voters as provided in Article 4. Arguments shall be submitted to the City Clerk, accompanied by 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, at City Hall, Lodi, California. Arguments may be changed or withdrawn until and including the date fixed by the City Clerk. NOTICE IS FURTHER GIVEN that the City Council has determined that rebuttal arguments, not to exceed 250 words in length, as submitted by the authors of the opposing direct arguments, may be filed with the Clerk, accompanied by 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 of the signature of at least one of its principal officers who is the author of the argument, not more than 10 days after the final date for filing direct arguments. The City Clerk has fixed July 29, 2016, during normal office hours, as posted, as the date after which no rebuttal arguments for or against the City measures may be submitted to the Clerk for printing and distribution to the voters as provided in Article 4. NOTICE IS FURTHER GIVEN that any ordinance, impartial analysis, or direct argument filed under the authority of the Elections Code will be available for public examination in the Clerk's office for not less than 10 calendar days from the deadline for the filing of the arguments and analyses. Any rebuttal argument filed under the authority of the Elections Code will be available for public examination in the Clerk's office for not less than 10 calendar days from the deadline for filing rebuttal arguments. Jennifer M. Ferraiolo, CMC City Clerk Dated: July 9, 2016 AVISO DE VOTACION CONCERNIENTE A LAS MEDIDAS RELACIONADAS CON EL USO DE IMPUESTOS Y TRANSACCIONES ESPECIALES PARA LOS PARQUES Y LA SEGURIDAD PUBLICA POR MEDIO DE LA PRESENTE SE NOTIFICA QUE una Eleccion Municipal General se Ilevara a cabo en la Ciudad de Lodi, California, el martes 8 de Noviembre del 2016, para las medidas siguientes: tDebe el Municipio de Lodi reemplazar los parques infantiles SI anticuados, reparar la ribera erosionada en el Lago de Lodi, arreglar y extender los senderos en el parque, reemplazar los banos en el mismo y las fuentes de agua potable y mejorar los estacionamientos, los caminos, la jardineria y la infraestructura, al promulgar un impuesto de un octavo de centavo por dolar (0.125%) por transaccion y el uso de impuestos ("de yentas"), lo cual se calcula que recaudara $1,400,000 anualmente, con fecha de limite de quince (15) arms, con todos los reditos exclusivamente destinados para estos objetivos especificos, sujeto a una auditoria anual y a la supervision de los ciudadanos? NOTA: EI contenido completo sobre la medida de impuestos esta disponible para revision publica en la Oficina de la Secretaria Municipal. NO LAS TRANSACCIONES ESPECIALES Y EL USO DE IMPUESTOS DE UN OCTAVO DE CENTAVO POR DOLAR DURANTE QUINCE ANOS, CON EL USO DE LOS INGRESOS FISCALES EXCLUSIVAMENTE PARA LAS REPARACIONES DE LOS PARQUES, MANTENIMIENTO, MEJORAS Y ACTUALIZACIONES (Este resumen fue preparado por el Fiscal Municipal) Si 2/3 (dos tercios) de los electores aprueban la medida de impuestos, las transacciones locales y el uso de impuestos (impuestos sobre las yentas) en la Ciudad de Lodi aumentaran temporalmente del 8% al 8.125% a partir del 1 ro. de Abril de 2017 hasta el 31 de Marzo de 2032. La Ciudad calcula que el impuesto generara $1,400,000 anualmente. La medida requiere que los ingresos fiscales adicionales sean depositados en un fondo especial, y que sean utilizados en las reparaciones y en el mantenimiento de los parques del municipio, incluyendo la actualizacion de las instalaciones y de la infraestructura, en la reconstruccion de las caminos y de los estacionamientos del parque, en la reparacion de los senderos del parque, en el tratamiento de la erosion que afecta al Lago Lodi, en el reemplazo de los juegos del parque infantil, en la renovacion de los banos del parque, en el reemplazo de las mesas de picnic, de las bancas y de las fuentes de agua potable, asi como se especifica en el plan de gastos detallado para el periodo de 2017-2032. La medida requiere que auditores independientes de la Ciudad Ileven a cabo una auditoria anual sobre la recaudacion de los fondos, la administracion y el gasto de los ingresos fiscales adicionales y que se establezca un comite de ciudadanos de supervision para revisar el fondo de gastos y para informar anualmente al Consejo Municipal. ,Debe la Ciudad de Lodi combatir el crimen y ampliar programas para disminuir la violencia de pandillas con Ia contratacion adicional de elementos de policia y un trabajador especializado en consejeria para que participe con jovenes en Ia prevencion de participacion y membresia en pandillas, restaurar los servicios del Camion de Bomberos 1 localizado en el centro y aumentar el entrenamiento, con Ia aprobacion de un cuarto de centavo por dolar (0.25%) por transaccion y el uso de impuestos ("de yentas"), se calcula recaudar $2,800,000 anualmente, 64% para la policia, 36% para los bomberos, con fecha Halite de 15 anos, con todo los reditos exclusivamente destinados para estos objetivos especificos, sujeto a una auditoria anual y a la supervision de los ciudadanos? NOTA El contenido completo sobre la medida de impuestos esta disponible publica en la Oficina de la Secretaria Municipal. NO para revision TRANSACCIONES ESPECIALES Y EL USO DE IMPUESTOS DE UN CUARTO DE CENTAVO POR DOLAR DURANTE QUINCE MOS, CON EL USO DE LOS INGRESOS FISCALES EXCLUSIVAMENTE PARA LA SEGURIDAD POBLICA (Este resumen fue preparado por el Fiscal Municipal) Si la medida de impuestos es aprobada por 2/3 (dos tercios) de los electores, las transacciones locales y el uso de impuestos ("impuestos sobre las yentas") en Ia Ciudad de Lodi aumentaran temporalmente del 8% al 8.25% a partir del 1 ro. de Abril de 2017 hasta el 31 de Marzo de 2032. La Ciudad calcula que el impuesto generara $2,800,000 anualmente. La medida requiere que los ingresos fiscales adicionales sean depositados en un fondo especial y que sean utilizados para incrementar el numero de agentes del orden publico, costear sus equipos de seguridad, contratar a una persona de medio- tiempo especializada en consejeria con jovenes para la prevencion de participacion y membresia en pandillas, reincorporar el servicio del Camion de Bomberos 1 localizado en el centro atravez de incrementar el numero de personal y proporcionar adiestramiento adicional para el personal de seguridad. Esta medida requiere que auditores independientes de la Ciudad Ileven a cabo una auditoria anual sobre la recaudacion de los fondos, la administracion y el gasto de los ingresos fiscales adicionales y que se establezca un comite de ciudadanos de supervision para la revision del fondo de gastos y para preparar un informe cada alio e informar anualmente al Consejo Municipal. (La eleccion estara disponible de 7:00 a.m. a 8:00 p.m.) AVISO PARA EL ELECTORADO ACERCA DE LA FECHA DESPUES DE LA CUAL NINGUN ARGUMENTO A FAVOR 0 EN CONTRA DE LAS MEDIDAS DE LA CIUDAD PODRA SER SOMETIDO A LA SECRETARIA MUNICIPAL ADEMAS SE NOTIFICA que, segun el Articulo 4, Capitulo 3, Seccion 9 del Codigo Electoral de Elecciones del Estado de California, la parte legislativa de la Ciudad o cualquier miembro o miembros del mismo, autorizados por Ia parte legislativa o cualquier elector individual o asociacion de ciudadanos de buena fe o cualquier combinacion de electores y asociaciones, pueden presentar un argumento por escrito, que no sea mayor de 300 palabras, junto con el nombre o los nombres impreso(s) y la(s) firma(s) del autor o autores sometiendolo, o si es sometido por parte de una organizacion, el nombre de Ia organizacion, y el nombre impreso y la firma de por lo menos uno de sus ejecutivos principales que sea el autor del argumento a favor o en contra de las medidas de Ia Ciudad. ADEMAS SE NOTIFICA que, basado en el periodo de tiempo razonable y necesario para preparar e imprimir los argumentos y papeletas de muestra para Ia election, la Secretaria Municipal ha fijado el 20 de Julio de 2016, durante el horario laboral normal, como se ha publicado, como la fecha limite despues de la cual ningun argumento a favor o en contra de las medidas de la Ciudad pueden ser sometidos a la Actuaria para su impresion o distribucion a los electores como se estipula en el Articulo 4. Los argumentos se deberan someter con la Actuaria Municipal, en Ia Alcaldia en Lodi, California, y deberan Ilevar el nombre impreso y firma(s) del autor o autores que lo someten, o si estan siendo sometidos por parte de una organizacion, el nombre de la organizacion, el nombre impreso y por lo menos la firma de uno de sus ejecutivos principales que sea el autor del argumento. Los argumentos pueden ser modificados o retirados hasta e incluyendo la fecha fijada por la Actuaria Municipal. ADEMAS SE NOTIFICA que, el Consejo Municipal ha determinado que argumentos de refutacion, pueden ser sometidos con la Actuaria, estos no deben exceder 250 palabras cuando sean sometidos por los autores de dichos argumentos directos de la parte opuesta, deberan llevar el nombre impreso y firma(s) de los autores que to someten, o si estan siendo sometidos por parte de una organizacion, el nombre de la organizacion al igual que el nombre impreso de por to menos uno de sus ejecutivos principales quien sea el autor del argumento, sin exceder 10 dias despues de la fecha limite para someter argumentos directos. La Secretaria Municipal ha fijado la fecha del 29 de Julio de 2016, durante el horario laboral normal, como se ha publicado, como Ia fecha en que ningun argumento de refutacion a favor o en contra de las medidas de la Ciudad puede ser sometido a la Actuaria para su impresion y distribucion a los electores como se estipula en el Articulo 4. ADEMAS SE NOTIFICA que, cualquier ordenanza, revision imparcial o argumento directo presentado segun la autoridad del Codigo Electoral, estara disponible para revision publica en la Oficina de la Actuaria por no menos de 10 dias habiles, a partir de la fecha limite para promover los argumentos y revisiones. Cualquier argument° de refutacion promovido bajo la autoridad del Codigo Electoral estara disponible para revision publica en la oficina de la Actuaria por no menos de 10 dias habiles a partir de la fecha limite para presentar argumentos de refutacion. Jennifer M. Ferraiolo, CMC Actuaria Municipal Fechado: July 9, 2016 DECLARATION OF POSTING NOTICE OF ELECTION FOR SALES TAX MEASURES RELATING TO PARKS AND PUBLIC SAFETY (POLICE AND FIRE) On Thursday, July 7, 2016, in the City of Lodi, San Joaquin County, California, a Notice of Election for candidates and for sales tax measures relating to Parks and Public Safety (Police And Fire) (attached and marked as Exhibit A), was posted at the following locations: Lodi City Clerk's Office Lodi City Hall Lobby Lodi Carnegie Forum WorkNet Office I declare under penalty of perjury that the foregoing is true and correct. Executed on July 7, 2016, at Lodi, California. 4�IfELA ARRIS PUTY C Y CLERK N:\Administration\CLERK\Public Hearings\AFFADAVITS\DECPOST.DOC ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK ELIZABETH BURGOS ADMINISTRATIVE CLERK NOTICE OF ELECTION NOTICE IS HEREBY GIVEN that a General Municipal Election will be held in the City of Lodi, California, on Tuesday, November 8, 2016, for the following officers: For Two (2) Members of the City Council (Full Term of Four Years) The nomination period for these offices begins on July 18, 2016 and closes on August 12, 2016 at 5:00 p.m. If nomination papers for an incumbent officer of the City are not filed by August 12, 2016 (the 88th day before the election), the voters shall have until the 83rd day before the election, August 17, 2016, to nominate candidates other than the person(s) who are the incumbents on the 88th day before the election, for that incumbent's elective office. This extension is not applicable where there is no incumbent eligible to be elected. If no one or only one person is nominated for an elected office, appointment to the elective office may be made as prescribed by §10229 of the Elections Code of the State of California. The polls will be open between the hours of 7:00 a.m. and 8:00 p.m. Jennifer M. Ferraiolo, CMC City Clerk Dated: July 2, 2016 NOTICE OF ELECTION FOR MEASURES RELATING TO SPECIAL TRANSACTIONS AND USE TAX FOR PARKS AND PUBLIC SAFTEY NOTICE IS HEREBY GIVEN that a General Municipal Election will be held in the City of Lodi, California, on Tuesday, November 8, 2016, for the following measures: Shall the City of Lodi replace outdated playgrounds, repair eroded riverbank at Lodi Lake, repair and expand park trail systems, replace park restrooms and drinking fountains, and improve park parking lots, roadways, landscaping, and infrastructure, by enacting a one-eighth cent per dollar (0.125%) transactions and use ("sales") tax, estimated to raise $1,400,000 annually, to sunset in fifteen (15) years, with all revenue exclusively applied to these specific purposes, subject to citizen oversight and annual audit? YES NO NOTE: The full text of the tax measure is available for public examination in the City Clerk's Office. SPECIAL TRANSACTIONS AND USE TAX OF ONE-EIGHTH CENT PER DOLLAR FOR FIFTEEN YEARS, WITH THE TAX REVENUE TO BE USED EXCLUSIVELY FOR PARK REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES (Summary prepared by City Attorney) If 2/3 of the voters approve the tax measure, the local transactions and use tax ("sales tax") in the City of Lodi will temporarily increase from 8% to 8.125% from April 1, 2017 through March 31, 2032. The City estimates the tax will generate $1,400,000 annually. The measure requires the additional tax revenue be deposited into a special fund and be spent on repairs and maintenance in City parks, including the upgrading of park amenities and infrastructure, the reconstruction of park roadways and parking lots, rehabilitation of park trails, repair of erosion at Lodi Lake, replacement of playground equipment, renovation of park bathrooms, replacement of picnic tables, benches and drinking fountains, as specified in a detailed expenditure plan for the period 2017-2032. The measure requires the City's independent auditors to annually audit the collection, management, and expenditure of the additional tax revenue and establishes a citizen's oversight committee to review fund expenditures and report annually to the City Council. Shall the City of Lodi fight crime and expand programs to reduce gang violence by hiring additional police and a gang intervention worker, restore downtown Fire Engine 1 service, and increase training, by enacting a one-quarter cent per dollar (0.25%) transactions and use ("sales") tax, estimated to raise $2,800,000 annually, 64% to police, 36% to fire, sunset in 15 years, all revenue exclusively applied to these specific purposes, subject to citizen oversight and annual audit? YES NO NOTE: The full text of the tax measure is available for public examination in the City Clerk's Office. SPECIAL TRANSACTIONS AND USE TAX OF ONE-QUARTER CENT PER DOLLAR FOR FIFTEEN YEARS, WITH THE TAX REVENUE TO BE USED EXCLUSIVELY FOR PUBLIC SAFETY (Summary prepared by City Attorney) If the tax measure is approved by 2/3 of the voters, the local transactions and use tax ("sales tax") in the City of Lodi will temporarily increase from 8% to 8.25% from April 1, 2017 through March 31, 2032. The City estimates the tax will generate $2,800,000 annually. The measure requires the additional tax revenue be deposited into a special fund and be spent on increasing the number of police officers, fund their safety equipment, hire a part-time youth outreach worker to conduct gang intervention and prevention, return downtown Fire Engine 1 to service by increasing staffing, and provide additional training for public safety personnel. The measure requires the City's independent auditors to annually audit the collection, management, and expenditure of the additional tax revenue and establishes a citizen's oversight committee to review expenditures and annually report to the City Council. (The polls will be open between the hours of 7:00 a.m. and 8:00 p.m.) NOTICE TO VOTERS OF DATE AFTER WHICH NO ARGUMENTS FOR OR AGAINST CITY MEASURES MAY BE SUBMITTED TO THE CITY CLERK NOTICE IS FURTHER GIVEN that pursuant to Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, the legislative body of the City, or any member or members thereof authorized by the body, or any individual voter or bona fide association of citizens, or any combination of voters and associations, may file a written argument, not to exceed 300 words in length, accompanied by 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, for or against the City measures. NOTICE IS FURTHER GIVEN that, based upon the time reasonably necessary to prepare and print the arguments and sample ballots for the election, the City Clerk has fixed July 20, 2016, during normal office hours, as posted, as the date after which no arguments for or against the City measures may be submitted to the Clerk for printing and distribution to the voters as provided in Article 4. Arguments shall be submitted to the City Clerk, accompanied by 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, at City Hall, Lodi, California. Arguments may be changed or withdrawn until and including the date fixed by the City Clerk. NOTICE IS FURTHER GIVEN that the City Council has determined that rebuttal arguments, not to exceed 250 words in length, as submitted by the authors of the opposing direct arguments, may be filed with the Clerk, accompanied by 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 of the signature of at least one of its principal officers who is the author of the argument, not more than 10 days after the final date for filing direct arguments. The City Clerk has fixed July 29, 2016, during normal office hours, as posted, as the date after which no rebuttal arguments for or against the City measures may be submitted to the Clerk for printing and distribution to the voters as provided in Article 4. NOTICE IS FURTHER GIVEN that any ordinance, impartial analysis, or direct argument filed under the authority of the Elections Code will be available for public examination in the Clerk's office for not Tess than 10 calendar days from the deadline for the filing of the arguments and analyses. Any rebuttal argument filed under the authority of the Elections Code will be available for public examination in the Clerk's office for not less than 10 calendar days from the deadline for filing rebuttal arguments. Jennifer M. Ferraiolo, CMC City Clerk Dated: July 13, 2016 DECLARATION OF MAILING LETTER REGARDING NOTICE OF ELECTION FOR SALES TAX MEASURES RELATING TO PARKS AND PUBLIC SAFETY (POLICE AND FIRE) On July 7, 2016, in the City of Lodi, San Joaquin County, California, I deposited in the United States mail, envelopes with first-class postage prepaid thereon, containing letter and Notice of Election for sales tax measures relating to Parks and Public Safety (Police And Fire), attached hereto Marked Exhibit A. The mailing list for said matter is attached hereto, marked Exhibit B. There is a regular daily communication by mail between the City of Lodi, California, and the places to which said envelopes were addressed. I declare under penalty of perjury that the foregoing is true and correct. Executed on July 7, 2016, at Lodi, California. Lt 1' l ,1AMELA E� RRIS 616DEPUTY CITY CLERK Forms/decmail.doc ORDERED BY: C-rg--- NNIF M. FERRAIOLO CITY CL K, CITY OF LODI ELIZABETH BURGOS ADMINISTRATIVE CLERK CITY COUNCIL MARK CHANDLER, Mayor DOUG KUEHNE, Mayor Pro Tempore BOB JOHNSON JOANNE MOUNCE ALAN NAKANISHI Interested Parties CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6702 / FAX (209) 333-6807 www.lodi.gov citvclerk@lodi.Qov July 7, 2016 STEPHEN SCHWABAUER City Manager JENNIFER M. FERRAIOLO City Clerk JANICE D. MAGDICH City Attorney EXHBiT RE: NOTICE OF ELECTION FOR SALES TAX MEASURES RELATING TO PARKS AND PUBLIC SAFETY (POLICE AND FIRE) The Lodi City Council, at its meeting on July 6, 2016, adopted Resolution Nos. 2016-126 and 2016-127 ordering that two measures be submitted to the voters at the November 8, 2016, General Municipal Election relating to a special transactions and use tax for Parks and a special transactions and use tax for Public Safety (Police and Fire). Enclosed for informational purposes is a copy of the Notice of Election for the measure, which includes the following information: • Deadline for filing arguments (not exceeding 300 words) — July 20, 2016 • Deadline for filing rebuttal arguments (not exceeding 250 words) — July 29, 2016 Arguments must be filed in the City Clerk's Office on or before the deadlines established, during normal office hours. Also enclosed is the "Form of Statement to be Filed by Author of Argument," which must accompany any argument filed in the City Clerk's Office. Should you have any questions, please feel free to contact my office. Sincerely, Jennifer M.SFerraiolo, CMC City Clerk Enclosures NOTICE OF ELECTION FOR MEASURES RELATING TO SPECIAL TRANSACTIONS AND USE TAX FOR PARKS AND PUBLIC SAFTEY NOTICE IS HEREBY GIVEN that a General Municipal Election will be held in the City of Lodi, California, on Tuesday, November 8, 2016, for the following measures: Shall the City of Lodi replace outdated playgrounds, repair eroded riverbank at Lodi Lake, repair and expand park trail systems, replace park restrooms and drinking fountains, and improve park parking lots, roadways, landscaping, and infrastructure, by enacting a one-eighth cent per dollar (0.125%) transactions and use ("sales") tax, estimated to raise $1,400,000 annually, to sunset in fifteen (15) years, with all revenue exclusively applied to these specific purposes, subject to citizen oversight and annual audit? YES NO NOTE: The full text of the tax measure is available for public examination in the City Clerk's Office. SPECIAL TRANSACTIONS AND USE TAX OF ONE-EIGHTH CENT PER DOLLAR FOR FIFTEEN YEARS, WITH THE TAX REVENUE TO BE USED EXCLUSIVELY FOR PARK REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES (Summary prepared by City Attorney) If 2/3 of the voters approve the tax measure, the local transactions and use tax ("sales tax") in the City of Lodi will temporarily increase from 8% to 8.125% from April 1, 2017 through March 31, 2032. The City estimates the tax will generate $1,400,000 annually. The measure requires the additional tax revenue be deposited into a special fund and be spent on repairs and maintenance in City parks, including the upgrading of park amenities and infrastructure, the reconstruction of park roadways and parking lots, rehabilitation of park trails, repair of erosion at Lodi Lake, replacement of playground equipment, renovation of park bathrooms, replacement of picnic tables, benches and drinking fountains, as specified in a detailed expenditure plan for the period 2017-2032. The measure requires the City's independent auditors to annually audit the collection, management, and expenditure of the additional tax revenue and establishes a citizen's oversight committee to review fund expenditures and report annually to the City Council. Shall the City of Lodi fight crime and expand programs to reduce gang violence by hiring additional police and a gang intervention worker, restore downtown Fire Engine 1 service, and increase training, by enacting a one-quarter cent per dollar (0.25%) transactions and use ("sales") tax, estimated to raise $2,800,000 annually, 64% to police, 36% to fire, sunset in 15 years, all revenue exclusively applied to these specific purposes, subject to citizen oversight and annual audit? YES NO NOTE: The full text of the tax measure is available for public examination in the City Clerk's Office. SPECIAL TRANSACTIONS AND USE TAX OF ONE-QUARTER CENT PER DOLLAR FOR FIFTEEN YEARS, WITH THE TAX REVENUE TO BE USED EXCLUSIVELY FOR PUBLIC SAFETY (Summary prepared by City Attorney) If the tax measure is approved by 2/3 of the voters, the local transactions and use tax ("sales tax") in the City of Lodi will temporarily increase from 8% to 8.25% from April 1, 2017 through March 31, 2032. The City estimates the tax will generate $2,800,000 annually. The measure requires the additional tax revenue be deposited into a special fund and be spent on increasing the number of police officers, fund their safety equipment, hire a part-time youth outreach worker to conduct gang intervention and prevention, return downtown Fire Engine 1 to service by increasing staffing, and provide additional training for public safety personnel. The measure requires the City's independent auditors to annually audit the collection, • management, and expenditure of the additional tax revenue and establishes a citizen's oversight committee to review expenditures and annually report to the City Council. (The polls will be open between the hours of 7:00 a.m. and 8:00 p.m.) NOTICE TO VOTERS OF DATE AFTER WHICH NO ARGUMENTS FOR OR AGAINST CITY MEASURES MAY BE SUBMITTED TO THE CITY CLERK NOTICE IS FURTHER GIVEN that pursuant to Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, the legislative body of the City, or any member or members thereof authorized by the body, or any individual voter or bona fide association of citizens, or any combination of voters and associations, may file a written argument, not to exceed 300 words in length, accompanied by 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, for or against the City measures. NOTICE IS FURTHER GIVEN that, based upon the time reasonably necessary to prepare and print the arguments and sample ballots for the election, the City Clerk has fixed July 20, 2016, during normal office hours, as posted, as the date after which no arguments for or against the City measures may be submitted to the Clerk for printing and distribution to the voters as provided in Article 4. Arguments shall be submitted to the City Clerk, accompanied by 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, at City Hall, Lodi, California. Arguments may be changed or withdrawn until and including the date fixed by the City Clerk. NOTICE IS FURTHER GIVEN that the City Council has determined that rebuttal arguments, not to exceed 250 words in length, as submitted by the authors of the opposing direct arguments, may be filed with the Clerk, accompanied by the printed names) 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 of the signature of at least one of its principal officers who is the author of the argument, not more than 10 days after the final date for filing direct arguments. The City Clerk has fixed July 29, 2016, during normal office hours, as posted, as the date after which no rebuttal arguments for or against the City measures may be submitted to the Clerk for printing and distribution to the voters as provided in Article 4. NOTICE IS FURTHER GIVEN that any ordinance, impartial analysis, or direct argument filed under the authority of the Elections Code will be available for public examination in the Clerk's office for not less than 10 calendar days from the deadline for the filing of the arguments and analyses. Any rebuttal argument filed under the authority of the Elections Code will be available for public examination in the Clerk's office for not Tess than 10 calendar days from the deadline for filing rebuttal arguments. Jennifer M. Ferraiolo, CMC City Clerk Dated: July 13, 2016 FORM OF STATEMENT TO BE FILED BY AUTHOR OF ARGUMENT All arguments concerning measures filed pursuant to Elections Code Chapter 3 (Municipal Elections), Division 9 (Measures Submitted to the Voters), Article 4 (Arguments Concerning City Measures), shall be accompanied by the following form statement, to be signed by each proponent and by each author, if different, of the argument: The undersigned proponent(s) or author(s) of the (primary / rebuttal) argument (in favor of/ against) ballot proposition (name or number) at the General Municipal Election for the (title of election, e.g., primary, general, special) City of Lodi to be held on (jurisdiction) November 8. 2016 hereby state (date) that such argument is true and correct to the best of (his / her / their) knowledge and belief. (Legislative Body or Committee, if applicable) ALL AUTHORS MUST PRINT HIS/HER NAME, SIGN, AND DATE THIS FORM Signed Date Print Sign N:\Administration\CLERK\Election\BinderManual\FormArgumentRebuttal.docx Submitted herewith is the PRIMARY ARGUMENT or REBUTTAL Measure (in favor of / against) (name or number) Arguments in support of or in opposition to the proposed laws are the opinions of the authors. TEXT: Submitted by: (Legislative Body or committee name, if applicable) Signed ALL AUTHORS MUST PRINT HIS/HER NAME, SIGN, AND DATE THIS FORM Date PrintO Sign N:\Administration\CLERK\Election\BinderManual\FormArgumentRebuttal.docx NOTICE OF ELECTION FOR SALES TAX MEASURES RELATING TO PARKS AND PUBLIC SAFETY (POLICE AND FIRE) Mailing List Pat Patrick, CEO/Executive Director Lodi District Chamber of Commerce 35 S. School Street Lodi, CA 95240 Lodi Recreation Commission c/o Jeff Hood, Liaison 230 W. Elm Street Lodi, CA 95240 Lodi Firefighters Association (PAC) P.O. Box 1841 Lodi, CA 95241 Lodi Police Officers Association 215 W. Elm Street Lodi, CA 95240 Stephen Schwabauer City Manager P.O. Box 3006 Lodi, CA 95241-1910 Janice D. Magdich City Attorney P.O. Box 3006 Lodi, CA 95241-1910 Lodi City Council P.O. Box 3006 Lodi, CA 95241-1910 EXHIBIT B