Resolution No. 2018-003RESOLUTION NO. 2018-03
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON, CALIFORNIA, MAKING TECHNICAL UPDATES TO THE
BALLOT LANGUAGE FOR THE UTILITY USERS TAX MEASURE R
FOR THE CITY'S GENERAL MUNICIPAL ELECTION OF APRIL
10, 2018, TO COMPLY WITH RECENT UPDATES TO
CALIFORNIA ELECTIONS CODE SECTION 13119(b)
WHEREAS, by its Resolution No. 2017-59, adopted on
November 7, 2017, the City Council of the City of Vernon (the "City
Council") called a general municipal election in the City to be held on
April 10, 2018 (the "Election"), by mail ballot only; and
WHEREAS, on December 5, 2017, the City Council adopted
Resolution No. 2017-65, submitting to the voters of the City for the
Election a Utility Users' Tax Measure; and
WHEREAS, effective January 1, 2018, the California Elections
Code (the "Elections Code"), §13119(b), was amended to require that
"...the ballot shall include in the statement of the ordinance to be
voted on the amount of money to be raised annually and the rate and
duration of the tax to be levied" (emphasis added); and
and
WHEREAS, the amended Elections Code applies to the Election;
WHEREAS, by memorandum dated February 6, 2018, the City Clerk
has recommended that the ballot measure language for the Utility Users'
Tax Measure be updated to comply with recent updates to Elections Code
§13119(b); and
WHEREAS, the City Council desires to submit to the voters of
the City, at the Election, the updated language (only) for the ballot
question, which is technical in nature and does not change the
substance of the ordinance being voted on and is intended to provide
more information to the voters.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this adoption of this resolution is exempt under the California
Environmental Quality Act (CEQA), because it is an administrative
activity of government that will not result in direct or indirect
physical changes in the environment, and therefore does not constitute
a "project" as defined by CEQA Guidelines section 15378.
SECTION 3: Ballot Question. The measure (the "Measure")
shall appear on the ballot as follows:
MEASURE R:
Shall an ordinance be adopted to authorize the
levy of a 6% utility users' tax on
YES
electricity, gas, telecommunications, video
and water utility services for
commercial/industrial customers, with
exemptions for residential services, raising a
NO
total annual amount of $11.9 million for a
duration of 10 years after the effective date?
- 2 -
SECTION 4: The City Clerk, or Deputy City Clerk, of the
City of Vernon shall certify to the passage, approval and adoption of
this resolution, and the City Clerk, or Deputy City Clerk, of the City
of Vernon shall cause this resolution and the City Clerk's, or Deputy
City Clerk's, certification to be entered in the File of Resolutions of
the Council of this City.
APPROVED and ADOPTED this 6th day of February, 2018.
ATTEST: �p
ria E. ifyala
City Clerk /
APPROVED AS TO FORM:
Brian yun,
Senior Deputy Ci y Attorney
4Mjk4V' 4) "J
Name: Meli a'A. Ybarra
Title: Mayor /
- 3 -
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I , Maria E . Ayala City Clerk / of the City
of Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 2018-03, was duly passed, approved and adopted by the
City Council of the City of Vernon at a regular meeting of the City
Council duly held on Tuesday, February 6, 2018, and thereafter was duly
signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this (per day of February, 2018, at Vernon, California.
(SEAL)
- 4 -
Maria 4. Ayala
City Clerk /
TRANSMITTAL COMMUNICATION
of
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OFFICE OF THE CITY CLERK
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
February 6, 2018
Dean C. Logan
Registrar-Recorder/County Clerk Los Angeles County
Election Coordination Unit, 2°d Floor, Rm. 2003
12400 E. Imperial Highway
Norwalk, CA 90650
ecu@ffcc.lacounty.gov
Re: Resolution No. 2018-03 — A Resolution of the City Council of the City of Vernon,
California, Making Technical Updates to the Ballot Language for the Utility Users Tax
Measure R for the City's General Municipal Election of April 10, 2018, to Comply with
Recent Updates to California Elections Code Section 13119 (b)
Dear Mr. Logan:
Transmitted herewith is a copy of Resolution No. 2018-03 that was approved by City Council on
February 6, 2018.
If you have any questions regarding this matter, please contact Maria Ayala at (323) 583-8811
ext. 546.
Very tru yours,
i
l�
eborah R. Juarez
Records Management Assistant
Enclosure
c: City Clerk
Resolution No. 2018-03
Exclusively Industrial
f
y
OFFICE OF THE CITY CLERK
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
February 6, 2018
Lori Glasgow, Executive Officer
Board of Supervisors, County of Los Angeles
Kenneth Hahn Hall of Administration
500 West Temple Street, Room 383
Los Angeles, CA 90012
Re: Resolution No. 2018-03 — A Resolution of the City Council of the City of Vernon,
California, Making Technical Updates to the Ballot Language for the Utility Users Tax
Measure R for the City's General Municipal Election of April 10, 2018, to Comply with
Recent Updates to California Elections Code Section 13119 (b)
Dear Ms. Glasgow:
Transmitted herewith is a copy of Resolution No. 2018-03 that was approved by City Council on
February 6, 2017.
If you have any questions regarding this matter, please contact Maria Ayala at (323) 583-8811
ext. 546.
Very truly yours,
l
borah R. Juarez
Records Management Assistant
Enclosure
c: City Clerk
Resolution No. 2018-03
EXclusively Industrial
STAFF REPORT
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t�V�'LY 1MOJ�
RECEIVED
FEB 01 2018 STAFF REPORT
CITY CLERIC'S OFFICE CITY CLERK DEPARTMENT
DATE: February 6, 2018
TO: Honorable Mayor and City
��Council
FROM: Maria E. Ayala, City ClerkW�'
F E 'l 01 t318
cayr;��� 1►'IS �TIOi
RE: A Resolution to Make Technical Updates to Ballot Language for Utility Users
Tax Measure R for General Municipal Election of April 10, 2018
Recommendation
A. Find that adoption of the proposed resolution is exempt from California Environmental
Quality Act ("CEQA") review, because it is an administrative activity of government that
will not result in direct or indirect physical changes in the environment, and therefore does
not constitute a "project" as defined by CEQA Guidelines section 15378; and
B. Adopt a resolution making technical updates to the ballot language only for the Utility
Users Tax Measure R for the General Municipal Election of April 10, 2018 to comply with
recent updates in law to CA Elections Code § 13119(b) effective January 1, 2018.
Background
On December 5, 2017 the City Council adopted Resolution 2017-65, A Resolution of the City
Council of the City of Vernon, California Submitting to the Voters of the City at the City's April
10, 2018, General Municipal Election a Utility Users' Tax Measure (Measure "R"). Section 5.
Ballot Question states that the ballot question be presented as follows:
MEASURE R:
Shall an ordinance be adopted to authorize the
levy of a 6% utility users' tax on electricity, gas,
YES
telecommunications, video and water utility
services for commercial/industrial customers,
NO
with exemptions for residential services?
Page 1 of 2
190266.1
After Resolution 2017-65 was adopted, AB 195 took effect on January 1, 2018, which amended
California Elections Code § 13119(b) to require that for measures placed on the ballot, the "...ballot
shall include in the statement of the measure to be voted on the amount of money to be raised
annually and the rate and duration of the tax to be levied."
The proposed resolution ensures that the ballots being mailed to the voters of the City of Vernon
contain the language required by the updated Elections Code § 13119(b). The proposed updated
language for the ballot question is technical in nature and intended to provide more information to
the voters; it would be presented as follows (with the added language in bold):
MEASURE R:
Shall an ordinance be adopted to authorize the
YES
levy of a 6% utility users' tax on electricity, gas,
telecommunications, video and water utility
services for commercial/industrial customers,
with exemptions for residential services,
raising a total annual amount of $11.9
NO
million for a duration of 10 years after the
effective date?
The technical language change does not change any text in the underlying measure that would be
adopted if approved by the voters. As a result, the update does not affect or trigger any change in
the impartial analysis provided by the City Attorney's Office or any amendment to the argument
submitted in favor of the Measure. No argument was submitted against the Measure.
The above information has been vetted through the City's Elections Counsel, with City Attorney's
Office providing the drafted proposed resolution.
Fiscal Impact
This resolution to make the technical changes to the ballot language has no financial impact on the
City or on the Measure being proposed to the voters.
Attachment(s)
1. Draft Resolution
2. Impartial Analysis
3. Argument in Favor of Measure R
Page 2 of 2
190266.1
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CITY OF VERNON
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Measure R to amend sections 5.113, 5.114, 5.115, 5.116, 5.
, �ti
1115.121, 5.122
and repeal section 5.138 of Article VIII of Chapter 5 of the Vernon Municipal Code relating
to the Utility Users' Tax.
IMPARTIAL ANALYSIS OF MEASURE R BY THE CITY ATTORNEY OF THE
CITY OF VERNON
This analysis of Measure R, proposing an amendment to the Vernon Municipal Code, is
prepared and submitted to the voters of the City of Vernon at the direction of the City Council of
the City of Vernon and pursuant to Section 9280 of the California Elections Code.
If approved by the voters, Measure R will amend Sections 5.113 through 5.118
(inclusive), 5.121, 5.122 and repeal Section 5.138 of the Vernon Municipal Code. The
amendment increases the current UUT for the use of the City's electricity, gas, water,
telecommunications, and video services and infrastructure from 1% to 6% each, but only as to
commercial and industrial properties, not residential properties. It establishes a new "sunset
date" of ten (10) years from the effective date, which shall be the date upon which the City
Council certifies adoption by the electorate of the proposed ordinance. Finally, the amendment
deletes Section 5.138 from the Vernon Municipal Code, which, among other things, established a
$250,000 absolute dollar cap on the amount of UUT revenue the City could receive from any one
single customer in a fiscal year. The stated purpose of the amendment is to replace the current
operating transfer from the City's Public Utilities department to the City's general fund with an
approximately equivalent amount of UUT revenue, which would go directly to the general fund.
Elimination of the operating transfer would likely be viewed positively by government
regulatory bodies and financial bond rating agencies. The legality of operating transfers is also
currently under review by the California Supreme Court, so passage of Measure R would render
that judicial uncertainty moot.
If approved by the voters, Measure R will amend Sections 5.113 through 5.118
(inclusive), 5.121, 5.122 and repeal Section 5.138 of the Vernon Municipal Code.
It is intended and estimated that there will be no financial impact to the City.
gn7itrtyun,
Senior Deputy Cit4ttorney
City of Vernon
The above statement is an impartial analysis of Measure R. If you desire a copy of the
ballot measure amending the Vernon Municipal Code, please call the elections official's office at
323-583-8811 ext. 546 and a copy will be mailed at no cost to you.
rnu
`'r-f-cX. rs3
ARGUMENT IN FAVOR OF MEASURE R.-,.
The Vernon City Council urges citizens to vote YES for Measure R which will increase the current rate of the
Utility Users Tax ((.IUT) from 1 % to 6% for commercial/industrial properties within the City of Vernon in order
to generate enough revenues to stabilize the general fund. If passed by voters at the April 10, 2018 election,
the 6% utility tax will be levied on commercial/industrial users of telephone, electricity, gas, water, fiber, cable,
and/or video services, and will exclude all residential users.
With the current 1 % UUT, the City relies on operating transfers from the electric utility revenues to the City's
general fund to balance the budget each fiscal year. The revenues generated from the proposed UUT increase
will preserve the high standards under which the City of Vernon operates, and will address the City's general
fund shortfall for this year and subsequent years, removing the need for the utility transfer. This will achieve
greater stability in the general fund. In summary, the UUT revenues will:
• Remove the need for the City's electric utility to transfer approximately $9 million to the general
government fund each fiscal year
• Increase fiscal accountability for the general fund and promote less dependence on the utility
• Improve the electric utility's financial standing in the eyes of credit rating agencies
• Support the City's commitment to good governance practices
• Enable the general government to maintain its infrastructure, provide essential services, and meet its
forecasted financial obligations
Failure to take action could result in the reduction and/or elimination of quality government services, important
infrastructure maintenance, and capital projects. Ultimately, circumstances could lead to significant,
permanent budget cutbacks. It is up to Vernon's voters to make a critical decision to shape the City's future.
A YES VOTE ON MEASURE R IS A VOTE TO PROTECT VITAL CITY SERVICES.
Signed
Yvette Woodru -Perez. Mayor Pro Tempore
William J. Davis, Councilmember
Luz A.
Si
Leticia Lopez, Councilmember
Date 14 1 q r1
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ARGUMENTS
FORM OF STATEMENT TO BE FILED BY
AUTHORS OF ARGUMENTS
All arguments concerning measures filed pursuant to Division 9, Chapter 3
(beginning with § 9200) of the Elections Code shall be accompanied by
the following form statement to be signed by each proponent, and by
each author, if different, of the argument:
The undersigned proponents or authors of the primary argument in favor of ballot Measure R at
the General Municipal Election for the City of Vernon to be held on April 10, 2018, hereby state
that the argument is true and correct to the best of their knowledge and belief.
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON, CALIFORNIA MAKING TECHNICAL UPDATES TO THE
BALLOT LANGUAGE FOR THE UTILITY USERS TAX MEASURE R
FOR THE CITY'S GENERAL MUNICIPAL ELECTION OF APRIL
10, 2018, TO COMPLY WITH RECENT UPDATES TO
CALIFORNIA ELECTIONS CODE SECTION 13119(b)
WHEREAS, by its Resolution No. 2017-59, adopted on
November 7, 2017, the City Council of the City of Vernon (the "City
Council") called a general municipal election in the City to be held on
April 10, 2018 (the "Election"), by mail ballot only; and
WHEREAS, on December 5, 2017, the City Council adopted
Resolution No. 2017-65, submitting to the voters of the City for the
Election a Utility Users' Tax Measure; and
WHEREAS, effective January 1, 2018, the California Elections
Code (the "Elections Code"), §13119(b), was amended to require that
"...the ballot shall include in the statement of the ordinance to be
voted on the amount of money to be raised annually and the rate and
duration of the tax to be levied" (emphasis added); and
and
WHEREAS, the amended Elections Code applies to the Election;
WHEREAS, by memorandum dated February 6, 2018, the City Clerk
has recommended that the ballot measure language for the Utility Users'
Tax Measure be updated to comply with recent updates to Elections Code
§13119(b); and
WHEREAS, the City Council desires to submit to the voters of
the City, at the Election, the updated language (only) for the ballot
question, which is technical in nature and does not change the
substance of the ordinance being voted on and is intended to provide
more information to the voters.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this adoption of this resolution is exempt under the California
Environmental Quality Act (CEQA), because it is an administrative
activity of government that will not result in direct or indirect
physical changes in the environment, and therefore does not constitute
a "project" as defined by CEQA Guidelines section 15378.
SECTION 3: Ballot Question. The measure (the "Measure")
shall appear on the ballot as follows:
MEASURE R:
Shall an ordinance be adopted to authorize the
levy of a 60-. utility users' tax on
YES
electricity, gas, telecommunications, video
and water utility services for
commercial/industrial customers, with
exemptions for residential services, raising a
NO
total annual amount of $11.9 million for a
duration of 10 years after the effective date?
- 2 -
SECTION 4: The City Clerk, or Deputy City Clerk, of the
City of Vernon shall certify to the passage, approval and adoption of
this resolution, and the City Clerk, or Deputy City Clerk, of the City
of Vernon shall cause this resolution and the City Clerk's, or Deputy
City Clerk's, certification to be entered in the File of Resolutions of
the Council of this City.
APPROVED and ADOPTED this 6th day of February, 2018.
ATTEST:
City Clerk / Deputy City Clerk
APPROVED AS TO FORM:
Brian Byun,
Senior Deputy City Attorney
Name:
Title: Mayor / Mayor Pro-Tem
- 3 -
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, , City Clerk / Deputy City Clerk of the City
of Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. , was duly passed, approved and adopted by the
City Council of the City of Vernon at a regular meeting of the City
Council duly held on Tuesday, February 6, 2018, and thereafter was duly
signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this day of February, 2018, at Vernon, California.
(SEAL)
- 4 -
City Clerk / Deputy City Clerk