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HomeMy WebLinkAboutAgenda Report - July 20, 2016 J-01TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM J-01 AGENDA TITLE: Ordinance No. 1925 Entitled, "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" and Ordinance No. 1926 Entitled, "An Ordinance of the Lodi City Council 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" MEETING DATE: July 20, 2016 PREPARED BY: City Clerk RECOMMENDED ACTION: Motion waiving reading in full and (following reading by title) adopting the attached Ordinances No. 1925 and No. 1926. BACKGROUND INFORMATION: Ordinance No. 1925 entitled, "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" and Ordinance No. 1926 entitled, "An Ordinance of the Lodi City Council 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" was introduced at the regular City Council meeting of July 6, 2016. ADOPTION: With the exception of urgency ordinances, no ordinance may be passed within five days of its introduction. Two readings are therefore required — one to introduce and a second to adopt the ordinance. Ordinances may only be passed at a regular meeting or at an adjourned regular meeting; except for urgency ordinances, ordinances may not be passed at a special meeting. Id. All ordinances must be read in full either at the time of introduction or at the time of passage, unless a regular motion waiving further reading is adopted by a majority of all council persons present. Cal. Gov't Code § 36934. Ordinances take effect 30 days after their final passage. Cal. Gov't Code § 36937. APPROVED: '��`i���► ■l p en c •wab : uer, City Manager N:\Administration\CLERK\Council\COUNCOM\Ordinance_multiple.doc Ordinance No. 1925 Entitled, "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" and Ordinance No. 1926 Entitled, "An Ordinance of the Lodi City Council 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" July 20, 2016 Page Two These ordinances have been approved as to form by the City Attorney. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. nifer M. City Clerk JMF/PMF Attachment rraiolo 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 TRANSACTIONS 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 Tots 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. The 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 20th day of July, 2016 MARK CHANDLER Mayor ATTEST: JNIFER . 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 20, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Nakanishi ABSTAIN: COUNCIL MEMBERS — None I 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 ■. MAGDICH fty.Attorney 10 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 hems Parks spending plan: One-eighth cent, 15 years 205/10 2013/15 2015/. 403/21 2021/12 7300/33 2023/24 202026 2025/25 3434/07 705/20 2034/9 509/30 0530/31 2050/04 0703950480 • vel Lae 0001000 slvre.ne4arx51', $300,330 5360,000 2 Ledl Lake Erasion Ccmrol 5153,600 55,004000 51,240,000 $2 54060 3 Candy Cane Park Renovations 511500 5115,000 4 Leben Perky $10400 5225.0. 5325,000 5 Freemen Prkplayerauod rencumonr/M1 Id Imprwemuna 5175,030 $175,000 5350,140 6 Leal Lake Park North Slde Player.nd 5200,000 5714.000 7 10410.,+46.744,00. 75.47000 5750.000 5720.000 6 Parks Annex roofrepacer.83 565,003 50,000 O 16 bre trek Wei fe.elase0100 0100,000 5160000 10 Dae Park emmeltc 525,00 525,000 11 Beckman Park playground Lmta 150505 W.A. W0%200 12 3epar 1ak4/y Park pool/repairs 500,030 500,000 5160.000 13 a6I1Lake Put fw0sil0re0ert0520 replan rmne 5400,00 5404000 14 Peterson Park awedes $45,000 54,002 15 Sales Parkslaaa lighting replacement 5300.000 530.00 26 1i/tr.-Okra. 'Wkpagmagld trplaewre 5164000 $225030 5460,020 17 FogOsh mks Common FlayeAM:1)04l1c 5245000 5245,000 16 LsdlLaSernerfmrearall 5675,000 5675,600 2 Ylpmeed PIA tr0eoo 30e/l40 0rh s 5255,033 5255030 25 Prot160adar4 PadpO4puumaeian 555,000 555,000 21 Lex:1ake Park Maas PlanlmprwemeRT30 5503,000 5500,070 5502,000 0000,00 8002060 22 vmetwad Part: 54 otian,ystem 075rade, 5050000 5150.00 23 Hutchins 51rea3543re Pool HVAC0Ss7em $550.00 5550,00 24 Bn3fah Oaks dowmvep5ytmSnd area, well repair 555000 55500 25 Blakely Park a45aciam33505 renvataS/Field repairs 545,050 $46.000 5405,00 26 3.5.0. Lard.oeArrk a¢rdom 524010 510,002 27 Sari Park pad6ine5tm3anstnxilan 5500.00 550,00 29 0051 Park repaid 5142,00 $'-42,020 29 Softball Complairosoadom 5575.000 5525,000 30 Rep450o/mechanlol replacement Lake eau0ne P60I 524000 52400 31 000090n Park fdeatlsn b0mtr PVmP 560,070 560060 32 Construct splash pad at loc tlon150 5229.00 $214,060 04 2070Reli 1101100 r00500er514 $15400 5150.014 94 Chap.= Feld 0Pei3 516000 5160,00 35 Zup3 Reid searing meats 5450,000 $ cam. 36 Aaua9ciacillty maeban1cel replacement $4200 540,000 37 Mote 040u4unda 0edardesn V., -.T44 p d. 520400 0 5200,000 54,000 33 Beckman Park pienIceheiter 5775.00 87500 Century Park *Wound replacement 3130,000 5134300 35 Replace Lodi Lake Park Horth rearanm $402.000 5400,00 40 5ela Park Playgre6m6 epaunlord 5225,000 $725,000 41 Lawrence Far plannaund replacement 5175,000 5175,00 42 Passer Park pcyoround replacement 5225.000 5225,00 43 Zupo Reid ou0eld tulremuatIons 565000 130.534 44 50p102505503360 Parkmstraoms 530030 $30,00 45 Parks Med00145b P i107.00Omente $6400 $0000 40 1Fde5350e143101olyti0e07.0341005335573 5404000 540000 47 Sakpy Pia e4ayy%er..4,i ersate ttgba5s i $30,00 530400 5130,000 5130,000 43 Wlapa1ead.se re 02545 x 5200.000 525,0,000 40 5,20300 1.010,34 wed S cne Peel � 50 O&040:artclaniznr5$ppRe 5414., $75.00 $7500 51 16.34450570,ee100m payeround replacement 5225.020 5225,00 52 55005106 +..4A403031005033040003 5154000 5154000 53 eatakien Perkrestreem/payfmuld ralw.odm 55.5,00 522500 50 54 5005055 5030 �7pm,702ka�an 50 SS Lrrrsce!lhar�a0po,iA 56 Lara 01 4 WS1,04,...K P.Alca $0 07 feat Park rwem waraGesp $0 se sales Pah hlead�erseadrg rewlrs $5,00 55,000 55 tOaos 06305y4!530(e asp00144/10e02e. 55,000 55,000 55,030 55,00D 55200 55,033 55,003 $5030 35,030 55,000 55,003 55,000 55,000 55,000 55000 575,000 CO P706f5rny13595,he160rep450&repU55ne04 535,000 535,000 505,005 530,000 530,000 555000 54400 535,00 540,500 510,000 535,00 540000 53500 53500 0 535,00 5503,0 60 Repbcgirepal rilesWldre6405100m6s 51400 5]0,00 51000 514000 510,000 510000 $10,00 510,00 710000 510,00 570,000 514603 514000 510,00 510,00 5150,000 62 Tree safety 1prurine,remowll 575,000 550,000 546,000 540,014 502,000 540.00 54400 54400 540,030 545,030 54400 540.000 $4000 540F14 $40,602 564500 63 Turf 3400103. ae/repumm0 520,000 520,00 52400 520000 055,014 520,000 520.000 $40,.X520 5120.014 5115,00 5601.7 7 51..00 52400 520.000 520,060 6705000 64 Grape Bawl knpmveme.(00100tds) 550,000 $5400 555,00 550.00 550,00 550.00 55000 55200 550,00 550,00 555,030 55400 554000 550,000 550,039 5750,00 05 Sae l5'k140eaal meg% 55,00 35,000 $5.00 55,035 55,160 $500 5500 55,000 55.00 55.00 55,00 55,00 $5.00 55,000 55,000 575,000 66 Park 140[5[060 8550emreW5,s/1p184. 505.00 525,00 535.00 515,00 533,00 520000 575.000 510000 550,000 $55000 5438000 61 Park/s0 fat 0,1in733000/r,ncaatlamfmt-aelde1 52500 525,000 525000 525..0 575,001 525,000 523,000 525,000 525,020 625.000 575.00 525,00 5300000 Total 5440.00 513400,000 $1.400000 31,400,00 50,400,914 51400/000 01,400004 51400,00 54100,000 $114000 $1,400000 51.40.00 $1.400.000 52.404000 55,40200 $2],000300 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 TRANSACTIONS 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 FY 2016/17 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 Transactions 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 persona! 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. The 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 Severabilitv. 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. !f 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 20th day of July, 2016 MARK CHANDLER Mayor ATTEST: J NIFER j. FERRAIOLO Ci y 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 20, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Nakanishi ABSTAIN: COUNCIL MEMBERS — None 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 NNIFE 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 cast 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 J i Jennifer Ferraiolo From: Jennifer Ferraiolo Sent: Wednesday, July 20, 2016 8:44 AM To: Mike Lusk Cc: City Council; Steve Schwabauer; Janice Magdich; Jordan Ayers; Jeff Hood; Tod Patterson; Larry Rooney Subject: RE: Blue Sheet for Item J-01 July 20, 2016 City Council Meeting Thank you for your email. It was received by the City Council and forwarded to the City Manager for information, response, and/or handling. In addition, your correspondence will be provided to Council as a "Blue Sheet" item at tonight's meeting and made a part of the official record. Jennifer M. Ferraiolo, CMC City Clerk P.O. Box 3006 Lodi, CA 95241-1910 (209) 333-6702 (209) 333-6807 FAX From: Mike Lusk [maiito:mclusk(@softcontnet] Sent: Tuesday, July 19, 2016 6:57 PM To: City Council Subject: Blue Sheet for Item J-01 July 20, 2016 City Council Meeting LODI CITY COUNCIL JULY 20, 2016 LODI CITY MANAGER RE: Blue Sheet for Item J-01 July 20, 2016 City Council Meeting I support a yes vote on Agenda item J-01 Ordinance No. 1925 and 1926 for Parks and Rec and Public Safety -Police and Fire for the November 8, 2016 ballot initiative. Respectfully Mike Lusk, Lodi 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. 1925 THROUGH 1927 PUBLISH DATE: SATURDAY, JULY 23, 2016 LEGAL AD TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: LNS ACCT. #0510052 JENNIFER M. FERRAIOLO, CITY CLERK City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 DATED: THURSDAY, JULY 21, 2016 ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK PAMELA M. FARRIS DEPUTY CITY CLERK ELIZABETH BURGOS ADMINISTRATIVE CLERK Verify Appearance of this Legal in the Newspaper — Copy to File SEND PROOF OF ADVERTISEMENT. THANK YOU!! l Emailed to the Sentinel at dianer@Iodinews.com at 10 C (time) on 7 I//h (date) (pages) LNS Phoned to confirm receipt of all pages at (time) , -PMF ES (nitials) N:\Administration\CLERK\OrdSummaries\Advins.doc CITY OF LODI 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 upgrade park amenities and infrastructure, including reconstruction of park roadways and parking lots; rehabilitation of park trails; repair of erosion near Lodi Lake amphitheater; replacement of playground equipment; renovation of park bathrooms; and replacement of picnic tables, benches, and drinking fountains (as specified in the expenditure plan incorporated in the ordinance) on the November 8, 2016 general election ballot. Introduced July 6, 2016. Adopted July 20, 2016. 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 will become effective ten (10) days after the City Council declares the results of the election. AYES: Johnson, Kuehne, Mounce, and Mayor Chandler; NOES: None; ABSENT: Nakanishi. 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 downtown Fire Engine No. 1 to service, and enhance training of public safety personnel (as specified in the expenditure plan incorporated in the ordinance) on the November 8, 2016 general election ballot. Introduced July 6, 2016. Adopted July 20, 2016. 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 will become effective ten (10) days after the City Council declares the results of the election. AYES: Johnson, Kuehne, Mounce, and Mayor Chandler; NOES: None; ABSENT: Nakanishi. ORDINANCE NO. 1927 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 13.20 — ELECTRICAL SERVICE — BY REPEALING AND RE-ENACTING SECTIONS 13.20.190, "SCHEDULE EA — RESIDENTIAL SERVICE," AND 13.20.210, "SCHEDULE EM — MOBILE HOME PARK SERVICE," IN THEIR ENTIRETY. The purpose of this ordinance is to align the City of Lodi's residential electrical rate structure with industry standards, fairly allocate fixed costs to all residential customers, and create a more simplified and easier to understand electrical rate structure. Proposed rates are shown in Exhibit A. Introduced July 20, 2016. Adoption to be considered August 3, 2016. AYES: Johnson, Kuehne, and Mayor Chandler; NOES: Mounce; ABSENT: Nakanishi. Jennifer M. Ferraiolo, City Clerk City of Lodi July 20, 2016 Certified copies of the full text of these ordinances are available in the office of the Lodi City Clerk. EXHIBIT A SCHEDULE EA — RESIDENTIAL SERVICE APPLICABILITY: This schedule is applicable to single-phase domestic power service in single- family and multi -family dwellings separately metered by the City including those on discontinued all electric rate schedule, EE. RATES: Customer Charge $10.00 Energy Charge is by Tier of kWh usa•e: Tier 1 Tier 2 $/kWh $0.1400 Summer (May through October) Energy Tiers Beginning Tier kWh/month Tier 1 0 Ending Tier kWh/month 481 $0.1550 Tier 3 $0.3300 Tier 2 482 962 Tier 3 >962 Winter (November through April) Energy Tiers Beginning Tier kWh/month Tier 1 Ending Tier kWh/month Tier 2 Tier 3 0 392 >782 391 782 ENERGY COST AJUSTMENT (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment. BILLING CYCLE CHARGE (MONTHLY BILL): The Billing Cycle Charge is the sum of the Customer Charge, the Energy Charge, and the ECA. SPECIAL CONDITIONS: (a) When a business or commercial establishment is conducted in conjunction with a residence and both are measured through one meter, this rate does not apply. (b) This rate does not apply to service used for common area and facilities in multi -family dwellings. (c) Additional discounts are available as described in Schedule MR, Residential Medical Discount and Schedule ED, Residential SHARE Program Service. FIXED INCOME DISCOUNT: For those customers who are on fixed incomes below $45,000 annually and who are over 62 years of age, and do not qualify for any other discount, a discount of 5% shall apply to the electric bill. Procedures as to qualification will be established by the Electric Utility Department. 1 EXHIBIT A SCHEDULE EM — MOBILEHOME PARK SERVICE APPLICABILITY: This schedule is applicable to service supplied to mobile home parks through one meter and sub -metered to all individual mobile home units. RATES: Customer Charge (Master Meter Customer) $1 per individual mobile home park unit. Energy Charge is by Tier of kWh usage: Tier 1 Tier 2 $/kWh $0.1400 $0.1550 Tier 3 $0.3300 Summer (May through October Ener • Tiers Tier 1 Tier 2 Beginning Tier kWh/month Ending Tier 481 LkWh/month Winter (November through April) Energy Tiers 482 962 Tier 1 Tier 3 >962 Tier 2 Beginning 0 Tier kWh/month 392 Ending Tier 391 kWh/month 782 Tier 3 >782 MASTER METER / SUB -METER DISCOUNT: For each occupied mobile home park unit, the park owner will receive a monthly discount in the amount of $3.00. ENERGY COST AJUSTMENT (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment. BILLING CYCLE CHARGE {MONTHLY BILL): The Billing Cycle Charge is the sum of the Customer Charge (Master Meter Customer), the Energy Charge, the Master Meter / Sub -Meter Discount and the ECA. SPECIAL CONDITIONS: (a) This rate is available only for mobile home park master metering in service prior to March 31, 1989. (b) It is the responsibility of the master -metered customer to notify the City Finance Department by the 5t day of each month of any change in the number of occupied mobile home park units wired for service on the first day of that month. 2 EXHIBIT A (c) Miscellaneous electric Toads such as general lighting, laundry rooms, general maintenance, and other similar use incidental to the operation of the premises as a multi -family accommodation will be considered domestic use. (d) For the master -metered Customer to qualify for Single Household Alternative Rate for Energy (SHARE) and/or the Residential Medical Discount, the qualified sub -metered tenants of the master -metered Customer must submit the applicable application(s), including the tenant's unit number, to the City of Lodi Finance Department. The City of Lodi Finance Department will notify the master -metered Customer in writing of the tenant's certification for these programs. (e) For tenants who are on fixed incomes below $45,000 annually and who are over 62 years of age, and do not qualify for any other discount, a discount of 5% of the qualifying tenant's electric bill (Fixed Income Discount) shall be provided to the master -metered Customer. Procedures as to qualification will be established by the Electric Utility Department. The master -metered customer, not the City of Lodi, is responsible for extending the SHARE, Residential Medical Discount, and Fixed Income Discount to tenants certified to receive them. If verification establishes that the SHARE, Residential Medical Discount, or Fixed Income Discount tenant is ineligible, the tenant will be removed from the master -metered Customer's qualified tenants and the City of Lodi may render corrective billings. The master -metered Customer shall not bill any sub -metered tenant more than that tenant would be billed if that tenant were an individual customer of the City of Lodi. For a qualifying SHARE tenant, the master -metered Customer shall bill the qualifying tenant at the applicable rates equivalent to Schedule ED, Residential SHARE Program Service. For a tenant qualifying for a Residential Medical Discount, the master - metered Customer shall the bill the qualifying tenant in accordance with the provisions of Schedule MR, Residential Medical Discount. For tenants qualifying for a Fixed Income Discount, the master -metered Customer shall bill the qualifying tenant in accordance with the provisions of paragraph (e) herein. A tenant not qualified for any of the above discounts shall be billed using the rates and charges provided for in Schedule EM, Mobile Home Park Service, except the Master Meter / Sub -Meter Discount shall not be provided to tenants and the master -metered Customer shall not bill the tenant the Schedule EM, Mobile Home Park Service Customer Charge (Master Meter Customer). (h) With the exception of the Customer Charge provided for in Schedule EA, Residential Service, the master-meter/sub-meter rate discount provided herein prohibits further recovery by mobile home park owners for the costs of owning, operating and maintaining their electric sub -metered system. Upon request, mobile home park owners must submit copies of their tenant billings to the City of Lodi for auditing to ensure compliance with this rate tariff, provided however that such requests shall not be made more often than semi-annually. (f) (g) (i) 3 DECLARATION OF POSTING 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 On Thursday, July 21, 2016, in the City of Lodi, San Joaquin County, California, a certified copy of Ordinance No. 1925 (attached hereto, marked Exhibit "A") was posted in the Lodi City Clerk's Office. I declare under penalty of perjury that the foregoing is true and correct. Executed on July 21, 2016, at Lodi, California. (-41 Pamela M. Farris Deputy City Clerk ordsu mmari es\aaDecPost. doc ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK Elizabeth Burgos Administrative Clerk 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 TRANSACTIONS 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 specia! 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 [evy the tax imposed by this ordinance shall expire on the fifteenth anniversary of the operativ^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. The 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 ATTEST: NIFER' City Clerk . FERRAIOLO Approved this 20th day of July, 2016 MARK CHANDLER Mayor 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 20, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Nakanishi ABSTAIN: COUNCIL MEMBERS — None I 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. irL, i/A/LeZad JJ NNIFE M. FERRAIOLO City Clerk Approved to Form: JANICE ■. MAGDICH �t�rA.,orney 10 EXHIBIT 1 TO ORDINANCE ADDING CHAPTER 3.30 "SPECIAL TRANSACTION AND USE TAX FOR PARKS REPAIRS, MAINTENANCE, IMPROVEMENTS, AND UPGRADES" PARKS SPENDING PLAN Rem: Parks spending plan: One-eighth cent, 15 years 1 Lod1 Lake Park Sash Shorn Pamnnnu;15n 2 Lodl Lake Ernaon Control 3 Candy Cane Park Re003005s 4 hienlavir!ftW 5 6miiser, Part playground renovations/Heirs r • Lodi Lake Park North Side Playground 7 k2d612s;P,x46tkarhhaVerirseut e Park; Anne roof r5Plaeament 9 I:irkrs eters 1002 brna 1iI004OA 14 5500,0002020 11 Badman Park playground installation 12 Replan r Blakely Patkpool/re50lrs 13 4.1142E.0Pu!r.... aa0 strur ur.Yb0Vra 14 Peterson Pad upgrades 15 Sales Parksports lighting replacement 16 0.117002 0 Parilpial1rW6ds0pttr6mmnr 17 English Oaks Common pWground/Picas 16 Lodi Lake riyefrontvaO 1° Ymenood Part: Restroom demo/r07i05me35 20 Cantu/04.de. Parkplaygmuna surface 21 Ind! late Pads Mater Plan int 00,005nts110 22 Vineaood Park Irrigation system upgrades 23 Hurdhs Street 04235e Foal HVAC.} m 24 English mksriswr4ve Poygmund area, wall repair 25 Blakely Parksneatia 0050050 re ntisn/Feld repairs 26 Pannone Likef94dhPek 560'0.13 17 sales Park Parkirtglot reconstruction 7B Kofu Pah repairs 29 Softball Complex renouadars 30 lepmererna - '-'rgplaerma0 Lek 00213pvd 31 Beckman Pad irrigation booster pump . 32 Cmutructsplash pers. locator, TBD 33 291'0 Feld lighting replacement 34 Chapman Feld repairs 35 Zapo Flel4serting repairs 36 Apuatctadlitymefb niol 50p105026 37 ,22s066361reu00030mdyarkanOVypwwY parte 30 Beekman Ptak prrx26Arkv Century Park playground 500102e35e55 D gap -tux Lodi la Fe Pak North rearoo15 t0 Sats Park Playgroundreprsonne3 O 5 Lawrence Fah playground replacement . 5 Peterson Park piaygrnundreplaamenl AS 20p0146d outOeld turf rem:rations d4 Whoa Emerson Parkrssrraorns 45 ParlsMedianics1o3 ireprovemenrs 40 14116 Part C4Leµei•/V groes rurx56050 41 15.6aaytsr6yWpaued(sports stun raptiannaut el hale Perls pltrpewesaiaumaeg 45 644auy isarh+e p4nnanni apiasemcnt 10 *5100140207L00555005544010 Nurerr P*P2liner 51 Hutchlr65sre11551u6re playground replacement 52 Kofu Pah ruraaon;yoarassston renovations 50 KatrakIen Park r.1 oneslayOOu ndramva0on 60 Van *Oka s 31 Leerauna. tawu:ar;113 10v 56 .Nall lark paring 104 rOPaevt�y.t 51 1045h40,015.. ,015.. OP6� 542{[960: Se Solas Park bleaNcrseating repairs 53 5!g+re�+or,PPhi4Y�r?#F0.2.40,4 .rM- 43 P kfur ture/aheter repairs&replacement 15 Replacq/repakJNwlldrinkna otmoirs 273 Treeafety(pruning, removal) 13 Turf malnlena50/,00950245 40 Grape howl knamveme2S)5-521de) 55 Slone Pah annual repair. 65 050600igatin 0yctson repairs/upgraala 67 Parking loemain5r2ncerranevatlore (set-a0de) Teel 2017110 2013/15 2519/25 2020/21 5000,400 $254,220 55000,040 51,240,000 5115,200 $10,000 5175,05 520,40 5754000 505,000 5100,000 525,020 2021/02 1011/23 2023/24 2024/25 2024/26 1020/77 2027/26 2220/29 2023/30 2030/31 0031/32 000210000200 505.00 52394444 5315,000 5225,004 5a25.5 5175,000 5350,300 5031000 573;300 $85,000 5134,40 533,003 5200.001 5203,030 $80010 560,000 5160.000 5444000 5400,000 545000 54505 5204000 5044100 5104000 $225,030 5405,000 5245200 5245,000 $635.000 5415,200 5255,50 5255000 555000 555000 5500.000 5500,000 3101,000 5500,000 02000,1122 5154000 5150.50 5054030 4350,000 555,000 `055.000 564,204 5405,040 $465.54 510,00 510/00 5500.300 4.503,200 5142000 5147.40 5575,04 84000 560,000 $20,00 $150.03 5100,00 $450.20 $44010 5240.05 525,030 5403,030 52251305 5225.00 5165,00 5434 0 $434050 5403,000 $225.05 5225.000 5175,450 5175.0 5225.000 0225,030 $65,000 565,000 $30,030 530.040 56400 565,00 $45400 $40.00 530000 5350.00 5160.0 $180,010 525,40 5244000 575,04 575,05 5213.5 5223.5 515405 5154,05 5225,220 5225,50 5575.400 520,040 550,000 5200.00 $150.00 5160.00 5450.000 540,000 55,50 55,000 55,200 55,200 55.00 55,05 55,00 55300 55.00 55,50 45,030 55,500 05,05 55,000 55.000 55.50 $35,05 $35,000 533,000 $9405 530.00 555.209 54405 550,005 $4405 $20,035 $3505 545000 535,05 535,00 $35,50 51405 51405 51405 514000 510,05 515.5 515,00 51400 51455 51450 51405 510,000 51405 $1400 510.021 575,00 554050 $40,040 544403 $40,05 540,05 540,000 54455 540.20 54400 $2455 545,05 54405 040,54 $40.5 520,000 52405 52455 924050 $30,52 520,05 520.030 544027 5120.00 011500 515,30 5124401 524000 $25.00 515040 555,010 550.55 $50,55 55450 55,05 550.593 550,05 050,.50 550.5 550,05 550,030 550.00 55000 SWAM 554003 55,000 55.040 $5,00 55.50 55.5 55,030 55044 55.00 55090 55,05 55,00 55,55 55.00 55000 55.5 53505 525,45 535.5 515,040 530.55 52405 57405 515.5 55.5 555.023 525.5 $25,000 525,000 025,035 015000 525,50 526,55 025,05 525,000 $15,05 525,000 525030 554515 51400,55 5243,45 51,40405 53,444000 51,x5445 51,45040 53,45.5 55455.0 $5~m 51,45.5 51,154.05 $5404000 11,454400 01000.5 50 50 50 50 05,05 575,000 555.5 5100,50 4645,05 570505 575450 57505 5690,2509 530.50 521.5.50 DECLARATION OF POSTING 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 On Thursday, July 21, 2016, in the City of Lodi, San Joaquin County, California, a certified copy of Ordinance No. 1926 (attached hereto, marked Exhibit "A") was posted in the Lodi City Clerk's Office. I declare under penalty of perjury that the foregoing is true and correct. Executed on July 21, 2016, at Lodi, California. ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK Pamela M. Farris Elizabeth Burgos Deputy City Clerk Administrative Clerk ordsummaries\aaDecPost.doc ORDINANCE NO. 1926 -13 if A 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 TRANSACTIONS 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 FY 2016/17 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 Transactions 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 persona! 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. The 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. !f 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 20th day of July, 2016 MARK CHANDLER Mayor ATTEST: r Y1. J NIFER FERRAIOLO Ci y 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 20, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Nakanishi ABSTAIN: COUNCIL MEMBERS — None 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 CityAttorney Arney \ / \l V 10 / .' NNIF:;• M. FERRAIOLO Tit 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