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HomeMy WebLinkAbout2006-08-28 Packet. ROLL CALL CITY OF UKIAH CITY COUNCIL AGENDA Reaular Adjourned Meetin.q CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 August 28, 2006 6:00 p.m. . RIGHT TO APPEAL DECISION Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days (90) the time within which the decision of the City Boards and Agencies may be judicially challenged. . AUDIENCE COMMENTS ON NON-AGENDA ITEMS The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda. . UNFINISHED BUSINESS a. Adoption of Ordinance Amending Ukiah Political Reform Act b. Discussion on Mayor Appointment Process c. Discussion on Councilmember Compensation, Cost of Living Increase and Voluntary Service d. Adoption of Resolution on the North Fire Station Property Detachment from the City of Ukiah . NEW BUSINESS a. Discussion And Possible Amendment Of Resolution No. 2006-68, Adopted August 2, 2006, Entitled: Resolution of the City Council of the City of Ukiah Establishing Allowable Uses of Hotel-Motel Room Occupancy Tax Revenues Resulting from an Increase in the Tax Rate from 8% to 10%, Specifying Expenditure of New Revenue Should the Room Occupancy Tax be Increased. 6. COUNCIL REPORTS 7. CITY MANAGER/CITY CLERK REPORTS . CLOSED SESSION a. Public Employee Appointment (Gov't Code Section 54957e) Title: City Manager 9. ADJOURNMENT Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 72 hours prior to the meeting set forth on this agenda. Dated this 24th day of August, 2006. Gail Petersen, City Clerk AGENDA ITEM NO: 4a MEETING DATE: August 28, 2006 SUMMARY REPORT SUBJECT: ADOPTION OF ORDINANCE AMENDING UKIAH POLITICAL REFORM ACT SUMMARY: At a continued regular meeting of August 21, 2006, the City Council voted to revise the ordinance amending the recently adopted Ukiah Campaign Reform Act ("the Act"), which had been introduced at the regular City Council meeting on July 19, 2006. The amendment requires "Voluntary Spending Limit Candidates and Committees" to post a candidate picture and 500 word statement on the City's website and an additional 500 word statement, if any candidates reject the Voluntary Spending Limit, upon payment of the actual cost to the City of posting those statements on its website. The revisions (1) make the opportunity to post those statements available to candidates running for office in the current election to be held on November 7, 2006; and (2) prohibit reference in the statements to political party affiliation or partisan political membership, endorsements or activity. Because the ordinance as introduced has been revised, it cannot be adopted until five days after the revisions were approved on August 21. This continued regular meeting is being held to adopt the ordinance at the earliest opportunity so that it will become effective as early in the election cycle as possible. RECOMMENDED ACTION: Adopt the ordinance. ALTERNATIVE COUNCIL POLICY OPTIONS: Decline adopt the ordinance or enact additional revisions and adopt at a later meeting. Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A David J. Rapport, City Attorney David J. Rapport, City Attorney Candace Horsley, City Manager Attachment 1- Ordinance Amending Ukiah Campaign Reform Act, as revised on August 21,2006 Approved: agerCandace Horsley, City ATTACHMENT, ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING SECTION 2081 OF THE UKIAH CITY CODE. The City Council of the City of Ukiah hereby ordains as follows: SECTION ONE. Section 2081 of the Ukiah City Code is hereby amended to read as follows. {}2081: VOLUNTARY SPENDING LIMIT: A Candidate or City Committee may elect to comply with the voluntary spending limits as set forth in this Section 2081. A. A Candidate or City Committee which voluntarily accepts expenditure limits may not make Campaign Expenditures in excess of the limits set forth in subsection C, below. Campaign Expenditures by a Candidate and his or her Controlled Committee shall be aggregated. B. Each Candidate and each City Committee shall indicate on a form provided by the City Clerk his, her or its acceptance or rejection of the voluntary spending limits as established under Subsection C, below. At a minimum, the form shall (1) state the voluntary spending limit then in effect, (2) the benefits of acceptance of the voluntary spending limit, and (3) contain an agreement to comply with the requirements of this Section 2081. Said form shall be filed with the City Clerk at the same time that a Candidate files his or her nomination paper and verified statement of acceptance pursuant to Elections Code Section 10224 or that a City Committee files its statement of organization pursuant to Government Code Section 84101. C. For the November 2006 City Election, the spending limit is $5,000.00. This voluntary spending limit shall apply to future elections, but may be adjusted periodically by resolution of the city council to reflect increases or decreases in City population and the Consumer Price Index since August 2006. D. For candidates and City Committees accepting the voluntary spending limit, the following benefits apply: 1. The contribution limitation in Section 2079.A is increased from $200.00 to $500.00. 2. Except for recall elections, the voluntary spending limit for any Candidate opposing an incumbent shall be increased by 25%. 3. The City will pay for one-half the cost of the Candidate's statement of qualifications as printed in the ballot pamphlet. 4. Within one week of the filing deadline, the City will issue a news release, describing the purpose and benefits of the program, and announcing the Candidates and City Committees which have accepted the voluntary spending limit. 5. Each participating Candidate and City Committee may use the designation "Voluntary Spending Limit Candidate/Committee" in all election/campaign materials and in the Candidate's ballot pamphlet statement of qualifications. 6. Candidates and their Controlled Committees may carry over funds from one election cycle to the next, if, within the first three days of the next Election Cycle, the Candidate or committee files a statement with the City Clerk accepting the voluntary spending limit applicable to that Election Cycle. If the Candidate or committee does not file the required statement, all funds carried over from the previous Election Cycle shall be disbursed pursuant to Section 2085 within seven days after the beginning of that subsequent Election Cycle. 7. The City shall post on the website a "Voluntary Spending Limit Candidates/Committees" list. Upon payment by the Candidate or Committee of the actual costs thereof, the Candidate or Committee may post on the City's website: a. Up to a 500 word statement along with the Candidate's picture. b. An additional 500 word statement, if an opposing Candidate or City Committee rejects the voluntary spending limit. For purposes of subsections 7.a and 7.b, above, the City Council shall adopt a resolution establishing the actual costs to be charged by the City. Those costs shall include all direct and indirect costs associated with posting the statements on the website, the intent being that no public funds shall be made available for these postings. The statements shall contain no reference to political party affiliation or partisan political membership, endorsements or activity. The statements shall be accompanied by a notice from the City, stating that the views expressed in the statement are those of the Candidate or Committee and do not reflect the views of the City or its officials and do not constitute an endorsement of the Candidate or Committee by the City or its officials. E. A Candidate or City Committee which files a notice accepting the voluntary spending limit may not thereafter reject the limit, except that if an opposing Candidate or City Committee files a statement rejecting the voluntary spending limit, the Candidate or City Committee may file a statement with the City Clerk rescinding its acceptance of the voluntary spending limits within three days after the final date that nomination papers can be filed. F. Any candidate who files a statement of acceptance pursuant to subsection B, above, and makes Campaign Expenditures in excess of the limits shall be subject to the remedies in Section 2086. SECTION TWO. 1. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have adopted this Ordinance and any section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional or otherwise invalid. 2. EFFECTIVE DATE. This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption. Introduced by title only on July 19, 2006, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Adopted on August 2, 2006, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Mark Ashiku, Mayor ATTEST: Gail Petersen-Latipow, Deputy City Clerk AGENDA ITEM NO: 4b MEETING DATE: August 28, 2006 SUMMARY REPORT SUBJECT: DISCUSSION OF MAYOR SELECTION PROCESS In June, the electorate voted to elect five City Council members rather than four Council members and a Mayor. The Council now needs to consider a process for the appointment of a Mayor by the other City Council members. Historically, before the City of Ukiah Mayor was elected, a City Council member nominated another Council member for the positions of Mayor and Vice Mayor and the entire City Council voted on those nominations. The County Board of Supervisors (BOS) utilizes an informal rotation process where each district is usually given the opportunity to be the Chair for the Board. A Board member nominates a Supervisor from another district and the entire Board votes on that nomination. Sometimes the nominations do not follow the normal pattern of going through a rotation of the districts, depending on circumstances. A Board member must have served on the Board for at least one year, immediately prior to being considered for the Chair. The Council should discuss how they want to nominate and select a Mayor once the November election is complete. The process will be included in the Procedures of Conduct for the City Council. RECOMMENDED ACTION: Discuss and provide direction to staff ALTERNATIVE COUNCIL POLICY OPTIONS: Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: Candace Horsley, City Manager Approved: ~ ca-n-~ace Hors~a~ nager AGENDA SUMMARY ITEM NO. 4c DATE: August 28, 2006 REPORT SUBJECT: DISCUSSION ON CITY COUNCILMEMBER COMPENSATION, COST OF LIVING INCREASE AND VOLUNTARY SERVICE BACKGROUND: Past City Councils had directed staff to agendize the topic of cost of living increases to the City Councilmember salaries every two years. On May 3, 2006, Council directed staffto bring this topic to the Council after the June election for their discussion and consideration. Government Code §36516 provides the City Council with the ability to increase Councilmember salaries effective after an election. The existing ordinance must be amended for the current cost-of-living increase not to exceed an amount equal to five percent for each calendar year from the operative date of the last cost-of-living adjustment. Any adjustment to the current $471 salary would not become effective until after the election in November. If the Council approves a cost-of-living increase, staff will prepare the ordinance and return it at the next Council meeting for introduction. Although cost of living increases have not been provided over the past three years, the law allows Council to consider past years' increases in making their determination of the amount the increase should be. As previously stated, the increase cannot exceed an amount equal to five percent for each calendar year from the operative date (or November 2002) of the last cost-of-living adjustment. The applicable figures for consideration are as follows: Percentage 2003 2004 2005 2006 1% $476 $480 $485 $490 2% $480 $490 $500 $510 3% $485 $500 $515 $530 4% $490 $509 $530 $551 5% $495 $519 $545 $573 U.S. Cities Average San Francisco/Oakland Consumer Price Index March 2002 March 2003 March 2004 March 2005 March 2006 1.2% 3.2% 1.4% 3.1% 3.6% 1.8% 3.7% 0.2% 1.6% 2.6% Mayor Ashiku has also requested a discussion on voluntary service. He will discuss his thoughts orally at the Council meeting. RECOMMENDED ACTION: Discussion and possible action on City Councilmember compensation, cost of living increase and voluntary service. If appropriate, direct staff relative to preparation of ordinance. ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizen Advised: NA Requested by: City Council Prepared by: Sue Goodrick, Risk ManagedBudget Officer Coordinated with: Candace Horsley, City Manager Attachments: None // Candace Horsley, City Man r AGENDA ITEM NO: 4d MEETING DATE: August 28, 2006 SUMMARY REPORT SUBJECT: ADOPTION OF RESOLUTION CONFIRMING DETACHMENT OF NORTH FIRE STATION PROPERTY SUMMARY: The North State Street Fire Station was annexed into the City, even though it is not contiguous to the City limits. Normally, property can only be annexed which is contiguous to the City limits, however Government Code Section 56742 makes an exception for property which is owned by the City and which is located in the same county as the City. That section also states in subsection (e) that if the property sells, it ceases to be part of the City. The City sold the North State Street Fire Station property on April 2, 2004. The City Council has requested that a resolution be adopted as listed under subsection (g) confirming the detachment. The resolution must contain a description of the property and a map. Once adopted, the City Clerk must file the resolution and map with the Executive Director of LAFCO in accordance with Chapter 8 (commencing with Section 57200) of Part 4 of the Government Code. Copies of Government Code Sections 56742 and 57200 are attached as Attachment 1. The recommended resolution is attached as Attachment 2. RECOMMENDED ACTION: Adopt the resolution confirming detachment of North Fire Station property. ALTERNATIVE COUNCIL POLICY OPTIONS: N/A. Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A City Council David J. Rapport, City Attorney Candace Horsley, City Manager; Charley Stump, Planning Director Attachment 1- Government Code Sections 56742 and 57200 Attachment 2- Resolution Confirming Detachment of Property from City limits Approved: Candace Horsley, Manager ATTACHMENT I Government Code § 56742. Noncontiguous territory (a) Notwithstanding Section 56741, upon approval of the commission a city may annex noncontiguous territory not exceeding 300 acres if the territory meets all of the following requirements: (1) It is located in the same county as that in which the city is situated. (2) It is owned by the city. (3) It is used for municipal purposes at the time commission proceedings are initiated. (b) Territory which is used by a city for the reclamation, disposal, and storage of treated wastewater may be annexed to the city pursuant to this section without limitation as to the size of the territory. (c) If territory is annexed pursuant to this section, the annexing city may not annex any territory not owned by the city, not used for municipal purposes, and not contiguous to the city, although the territory is contiguous to the territory annexed pursuant to this section. (d) Notwithstanding any other provision of this section, a city which annexes territory pursuant to this section may annex additional territory in the same county as that in which the city is situated which is owned by the United States government or the State of California and which is contiguous to the first annexed territory if the total acreage of the first annexed and the subsequently annexed territory together does not exceed 300 acres in area. If after the completion of the subsequent annexation, the city sells any or all of the first annexed territory, the subsequently annexed territory shall cease to be part of the city if the subsequently annexed territory is no longer contiguous to territory owned by the city. (e) When any or all of the territory annexed to a city pursuant to this section is sold by the city, all of the territory that is no Ionqer owned by the city shall cease to be a part of that city. (f) A city may lease territory annexed pursuant to this section for any of the purposes authorized pursuant to Sections 37380 to 37396, inclusive, as well as enter into leases for the construction and operation of electrical generation, transmission, and distribution. If, however, a city enters into a lease on and after April 24, 2002, pursuant to Section 37395, 37396, or any other provision of law, that would authorize the development of a shopping center, hotel, motel, or lodging house on territory annexed pursuant to this section, the affected territory shall cease to be a part of the city. (g) When territory ceases to be part of a city pursuant to this section, the legislative body of the city shall adopt a resolution confirming the detachment. The resolution shall describe the detached territory and shall be accompanied by a map indicating the territory. Immediately upon adoption of the resolution, the city clerk shall make any filing required by Chapter 8 (commencing with Section 57200) of Part 4. (h) If territory annexed to a city pursuant to this section becomes contiguous to the city, the limitations imposed by this section shall cease to apply. § 57200. Transmission of resolution; Examination; Approval and notification (a) Immediately after completion of proceedings ordering a change of organization or reorganization without election or confirming an order for a change of organization or reorganization after confirmation by the voters, the executive officer shall prepare and execute a certificate of completion and shall make the filings required by this division. (b) Whenever the commission approves the inclusion of any territory of a landscape and lighting assessment district within a city, the executive officer shall notify the clerk of the landscape and lighting assessment district or other person designated by the district to receive notification. ATTACHMEI~'I- ~ RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH CONFIRMING DETACHMENT OF PROPERTY FROM THE TERRITORY OF THE CITY OF UKIAH UPON SALE OF NONCONTIGUOUS PROPERTY PURSUANT TO GOVERNMENT CODE SECTION 56742 WHEREAS, 1. A parcel of real property (the "North State Street Fire Station Property"), described as Parcel 1, as numbered and designated on the Parcel Map Minor Subdivision No. 51-76 filed for record July 15, 1976, in Map Case 2, Drawer 28, Page 80, Mendocino County Records, is also depicted on the map attached hereto as Exhibit A; and 2. The North State Street Fire Station Property has been annexed into the City of Ukiah ("City") pursuant to Government Code Section 56742; and 3. The North State Street Fire Station Property is not contiguous to the boundaries of the City of Ukiah; and 4 Under Government Code Section 56742(e), if noncontiguous property is annexed into a City, because it is owned by the City, that property shall cease to be a part of the City, if it is sold by the City; and. 5. On April 7, 2004, the City sold the North State Street Fire Station Property and title thereto transferred to A.J.P.J., Limited Liability Company; and 6. If City owned, non-contiguous property ceases to be part of the City, because it has been sold by the City, the City Council is required by Government Code Section 56742(g) to adopt a resolution confirming the detachment; NOW, THEREFORE, BE IT RESOLVED that the detachment of the North State Street Fire Station property, as described and depicted in the attached Exhibit A, from the territory of the City is hereby confirmed, effective April 7, 2004, and the City Clerk is hereby directed to file a certified copy of this resolution with the Executive Director of the Local Agency Formation Commission pursuant to Government Code Section 57200, and to file any other documents required by Chapter 8 (commencing with Section 57200) of Part 4 of the Government Code. PASSED AND ADOPTED by the City Council of the City of Ukiah on this 28th day of August 2006, by the following roll call vote: AYES: NOES: ABSTAINING: ABSENT: Mark Ashiku, Mayor ATTEST: Gail Petersen, City Clerk . 1800 North State Street, Ukiah APN 170-050-13 AGENDA ITEM NO: 5a MEETING DATE: August 28, 2006 SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE AMENDMENT OF RESOLUTION NO. 2006-68, ADOPTED AUGUST 2, 2006, ENTITLED: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ESTABLISHING ALLOWABLE USES OF HOTEL-MOTEL ROOM OCCUPANCY TAX REVENUES RESULTING FROM AN INCREASE IN THE TAX RATE FROM 8% TO 10%, SPECIFYING EXPENDITURE OF NEW REVENUE SHOULD THE ROOM OCCUPANCY TAX BE INCREASED SUMMARY: Councilmember John McCowen requested the City Attorney to review a proposed resolution amending the resolution adopted by the City Council on August 2, 2006, which specifies how the City Council intends to spend the revenue increase from Measure X, if it passes. He has met with the Greater Ukiah Chamber of Commerce and proposes the resolution amendment as further explained below. As requested, the City Attorney has prepared a resolution amending Resolution No. 2006-68 and reviewed the amended resolution. The following information is based, in part, on the letter from Councilmember McCowen attached as Attachment 3. On July 19, 2006, the City Council adopted a resolution to place a ballot measure ("Measure X") on the November 7, 2006, ballot increasing the Hotel-Motel Room Occupancy tax from 8% to 10%. On August 2 the Council adopted a resolution specifying the purposes for which the increased revenue from Measure X could be expended. That resolution provided that no less than 50% of the new revenue shall be expended for promotion of the City of Ukiah and its tourist industry, and that the balance shall be expended for economic development, beautification of commercial areas, park development and maintenance and recreation program scholarships. RECOMMENDED ACTION: Consider resolution amending Resolution No. 2006-68 and amended version of Resolution No. 2006-68 and determine whether to adopt, revise or take no action. ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: Greater Ukiah Chamber of Commerce Councilmember John McCowen David J. Rapport, City Attorney Candace Horsley, City Manager Attachment 1- Resolution Amending Resolution No. 2006-68 Attachment 2- Amended Resolution No. 2006-68 Attachment 3- Letter from Councilmember McCowen Approved: Candace Horsley, CiTanager Agenda Summary Report Page 2: On August 17 Councilmember McCowen met with the Greater Ukiah Chamber of Commerce ("Chamber") Governmental Affairs Committee to seek their recommendation that the Chamber Board of Directors endorse the ballot measure. The Governmental Affairs Committee recommended that the Chamber Board endorse the ballot measure provided that the resolution is amended. On August 23 the Chamber Board of Directors voted to endorse the ballot measure provided the resolution is amended to provide that: 1) for the first two years not less than 75% of the new revenue be expended for promotion of the City of Ukiah and its tourist industry; 2) the revenue expended for promotion be administered by the Chamber of Commerce subject to a performance agreement with the City; and 3) the current level of funding for contracts to promote tourism and economic development shall be maintained by the Ukiah Redevelopment Agency. The City Attorney has prepared a resolution amending Resolution No. 2006-68 and has reviewed the amended version of Resolution No. 2006-68 which are attached for Council consideration and possible adoption. The amended resolution increases the funds set aside from the revenue increase for promotion to 75% for the first two years (and 50% thereafter) and provides that these funds shall be administered by the Chamber subject to a performance agreement with the City. The City Attorney, at Councilmember McCowen's request, has prepared a draft resolution for consideration and possible adoption by the Ukiah Redevelopment Agency which would express the intent of the Redevelopment Agency to maintain the current level of funding for the contracts with the Ukiah Redevelopment Agency that promote tourism, the City and economic development. Those contracts are with the Economic Development and Finance Corporation, the Ukiah Main Street Program and the Chamber and total $60,000.00 in the current budget. ATTACHMENT., RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH, AMENDING RESOLUTION NO. 2006-68, ADOPTED AUGUST 2, 2006, ENTITLED: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ESTABLISHING ALLOWABLE USES OF HOTEL- MOTEL ROOM OCCUPANCY TAX REVENUES RESULTING FROM AN INCREASE IN THE TAX RATE FROM 8% TO 10%. WHEREAS, 1. On July 19, 2006, the City Council adopted a resolution placing a measure ("Measure X") on the November 7, 2006, ballot to amend Ukiah City Code Section 1752 to increase the room occupancy tax on hotels and motels ("TOT") in the City from 8% to 10%; and 2. On August 2, 2006, the City Council adopted Resolution No. 2006-68, entitled: Resolution of the City Council of the City of Ukiah Establishing Allowable Uses of Hotel- Motel Room Occupancy Tax Revenues Resulting From an Increase in the Tax Rate From 8% to 10%; and 3. Resolution No. 2006-68, specifies how the City Council intends to spend the increase in TOT resulting from Measure X, including the allocation of 50% of that revenue increase to the promotion of the City's tourist industry; and 4. The City Council has determined that the Greater Ukiah Chamber of Commerce ("Chamber") is uniquely situated to provide and coordinate the provision of those promotional efforts, provided it performs those services under and in compliance with a contract to be negotiated with the City Council; and 5. The Chamber advises the City Council that additional funds should be devoted to establishing a promotional program in the first two years after the TOT increase goes into effect; NOW, THEREFORE, BE IT RESOLVED that Resolution 2006-68 is hereby amended to read as set forth in the attached Exhibit A, which is incorporated herein by this reference. PASSED AND ADOPTED this 28th day of August, 2006, by the following roll call vote: AYES: NOES: ABSENT: ATTEST: Mark Ashiku, Mayor Gail Petersen, City Clerk ~ ATTACHMENT_ ,~, EXHIBIT A TO RESOLUTION AMENDING RESOLUTION NO. 2006-68 RESOLUTION NO 2006-68, AS AMENDED ON AUGUST 28, 2006 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ESTABLISHING ALLOWABLE USES OF HOTEL- MOTEL ROOM OCCUPANCY TAX REVENUES RESULTING FROM AN INCREASE IN THE TAX RATE FROM 80/0 TO 10%, WHEREAS, 1. The City of Ukiah in 1965 adopted Sections 1750-1763 (Chapter 8A of Division One) of the Ukiah City Code ("UCC"), establishing a hotel-motel room occupancy tax by an' ordinance known as the Uniform Transient Occupancy Tax Ordinance; and 2. Said tax is a general excise tax imposed on each person paying for the privilege of occupying any hotel or motel located within the City; and 3. The revenues produced by the Hotel-Motel Room Occupancy Tax are deposited into the City's general fund and used for general governmental purposes of the City; and 4. At least since 1990, the rate of tax has been established by UCC Section 1752 at 8% of the rent charged by a hotel or motel operator to stay in a room in the hotel or motel; and 5. The City Council has determined to present to the voters of the City at the Statewide General election scheduled for November 7, 2006, a measure which would increase the tax rate provided in UCC Section 1752 to 10% of the rent charged by a hotel or motel operator ("rate increase"), but would make no other changes to the Uniform Transient Occupancy Tax Ordinance; and 6. If the rate increase is approved by a majority vote of the voters in the November 7, 2006, election, the Hotel-Motel Room Occupancy Tax will remain a general excise tax in the City to be used for the general governmental purposes of the City; and 7. The City Council expects the revenues from the City's Hotel-Motel Room Occupancy Tax to increase in the coming years due to the increase in the number of hotels and motels within the City; and 8. The City Council also expects an increase in revenues deposited in the general fund resulting from the rate increase and increased promotional efforts if thc increase is approved by the voters; and 9. The City Council wants to inform the voters of the City and future City Councils how it expects to spend the revenue increase to the City resulting from the rate increase; NOW, THEREFORE, BE IT RESOLVED as follows: 1. The City Council shall use increased revenues that may result from the tax increase exclusively for the following purposes: A. 1:7o~' thc first two years Nnot less than :~)75% shall be expended for tapromotion of the City of Ukiah and its tourist industry, and not less than.,,,qt~"~'~, thcrcat~'tcr~ B. The balance shall be expended for: * Beautification of commercial areas within the City of Ukiah; * Economic development within the City of Ukiah; * Park development and maintenance within the City of Ukiah; * Scholarships for local children to attend local recreation programs. 2. Thc revenues cxpcl~dcd tbr promotion of'thc City ot'Ukiah and its tourist industry as spccilicd in %ccti~n I.:X. ol'lhis Resolution shall be adminislcrcd by the Greater Ukiah k'h:~l~cr {~i' ('on~mcrcc su/¥cct to an annual l,crlbrmancc agreement with thc City 23. The revenues expended for promotion of the City of Ukiah and its tourist industry as specified in Section 1.A. of this Resolution shall be administered by the Greater Ukiah Chamber of Commerce subject to an annual performance agreement with the City of Ukiah. 34. Prior to conducting public hearings on the annual budget, the Finance Director shall report to the City Council the total tax revenues attributable to the tax increase projected for the next fiscal year, commencing July 1. The projection shall be based on the actual revenues received from the tax increase in the previous fiscal year and reasonable assumptions about the potential change in such revenues for the upcoming fiscal year. A specific budget for the use of these revenues among the categories specified in Section I of this Resolution shall be prepared and approved each year as part of the City Council's approval of the annual budget for the City of Ukiah. 4. The City Council does not intend any portion of this resolution to change the Hotel-Motel Room Occupancy Tax from a general excise tax to a special tax or assessment. If a court of competent jurisdiction were to determine in a final, non- appealable judgment that this resolution or any portion thereof converts such tax or all or any portion of the revenues produced by such tax from a general tax to a special tax or assessment, then this resolution is and shall be to that extent null and void. PASSED AND ADOPTED, as amended, this 28th day of August, 2006, by the following roll call vote: AYES: NOES: ABSENT: ATTEST: Mark Ashiku, Mayor Gail Petersen, City Clerk Agenda Item No.: 5a Attachment 3 TO: CANDACE HORSLEY, CITY MANAGER FROM: JOHN MC COWEN, COUNCILMEMBER RE: PROPOSED AMENDED RESOLUTION I met with the Governmental Affairs Committee (GAC) of the Greater Ukiah Chamber of Commerce on August 17, 2006 to seek their recommendation that the Chamber Board endorse the ballot measure to increase the room occupancy tax. The GAC decided to recommend that the Chamber Board endorse the ballot measure provided the resolution specifying how the new revenue will be spent is amended. On August 23, 2006 the Chamber Board voted to endorse the ballot measure provided the following amendments are made to the resolution: 1.) the share of new revenue directed to promotion of the City of Ukiah and its tourism industry be increased to 75% for the first two years; 2.) the revenue for promotion of the City and its tourism industry be administered by the Greater Ukiah Chamber of Commerce subject to a performance agreement with the City; 3.) the City maintain the current level of contract for service funding that is currently budgeted through the Ukiah Redevelopment Agency for tourism, promotion and economic development. The Chamber Board recognizes that to be successful, this must be a collaborative process. The Chamber Board suggested that a committee be formed that will include representatives from the Chamber, the Main Street Program, the new Wine Grape and Wine Commission, the Business Improvement District, local hoteliers, the City of Ukiah and other relevant interests. This Committee could assist in developing the work plan to be included within the performance agreement. The performance agreement could also specify a cap for administration, such as 10%. The rationale for increasing the promotional amount in the first two years is that there will be start up costs and there is also a need to overcome the historic under promotion of the area. Main Street Program Executive Director Beeler is optimistic that the Main Street Board of Directors will agree to endorse the ballot measure at their next Board meeting on August 31. To the extent that promotional efforts are successful, there will be an increase in available funds in future years. Likewise, increased revenue derived from the current 8% rate will provide additional revenue to be used for street maintenance, public safety or other General Fund purposes. I believe the proposal before us represents the best opportunity to secure passage of the ballot measure and make promotional funds available in the near term. This is an opportunity for several entities with a common interest-the promotion of our area and its tourism industry-to work cooperatively together. 231.00' 257.50' %'Z6.65~ 0 ~,,'1~£ ,Z£ ogZ N ~ ,,i~1,80 o9ff-. N