Loading...
HomeMy WebLinkAbout24 - November 8, 2016 General Municipal Election - Ballot MeasureCTY OF F NEWPORT BEACH City Council Staff Report May 26, 2015 Agenda Item No. 24 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Leilani I. Brown, City Clerk — (949) 644 -3005, (brown @newportbeachca.gov PREPARED BY: Leilani I. Brown, City Clerk PHONE: (949) 644 -3005 TITLE: November 8, 2016 General Municipal Election - Ballot Measure ABSTRACT: On March 14, 2015, Council Member Keith Curry requested staff prepare a Charter Amendment to require that taxes proposed by the City Council obtain 5 of 7 votes of the City Council to place tax increases before the City's voters. The Resolution, if adopted, would call a General Municipal Election for November 8, 2016, and order on the ballot a Charter Amendment to add Charter Section 1115, entitled "City Council Sponsored Tax Proposals — 5 of 7 Vote Requirement." This amendment is also known as and self - titled the "Newport Beach Taxpayer Protection Act." RECOMMENDATION: Adopt Resolution No. 2015 -44, A Resolution of the City Council of the City of Newport Beach Calling and Giving Notice of the Holding of a General Municipal Election to be Held on Tuesday, November 8, 2016, and Ordering the Submission of a Proposed Amendment to the City Charter to the Electors, the "Newport Beach Taxpayer Protection Act" (Measure _ - Require 5 of 7 Votes of the City Council to Propose Taxes). FUNDING REQUIREMENTS: Funding will be budgeted to conduct the November 8, 2016 General Municipal Election. DISCUSSION: As a Charter City, the City of Newport Beach has the power to make and enforce all ordinances and regulations with respect to municipal affairs, subject only to restrictions and limitations provided in the City Charter or the state Constitution. Section 5(b) of Article XI of the California Constitution states that "it shall be competent in all city charters to provide ... for ... conduct of city elections." Further, the City Council generally may establish procedural rules, including rules to identify the necessary vote requirement for the legislative body to take certain actions. For instance, while the City Charter (as 24 -1 well as general law) states that a majority of members of the City Council shall be required for the enactment of any ordinance or resolution, the Charter presently specifies that certain actions require more than a bare majority to take action. An example of a supermajority vote requirement presently in the Newport Beach Charter include the adoption of an urgency ordinance pursuant to Section 412. Thus, establishing the vote requirement for City Council action to place a local measure, especially one drafted and sponsored by the City Council (as opposed to a measure submitted by citizen petition), on the ballot is a "core" area of municipal concern. And, importantly, such a provision does not conflict with any applicable state law of statewide concern or the California Constitution. Statutory law applicable to general law cities, but not charter cities, prohibits any proposed general tax from being presented at an election unless the tax proposal is approved by a two -third vote of all members of the city's city council. See Govt. Code Section 53724(b). Under established case law, this statutory supermajority vote requirement is not applicable to Newport Beach as a charter city. General law also does not impose any specialized vote requirements on a city council presenting a special tax to the voters (i.e., state law only requires a majority vote of a city council to present special taxes). Thus, as it presently stands, the Newport Beach City Council need only obtain a majority vote to place taxes (whether special or general) before the voters (with the potential exception of transaction and use taxes, which require a 2/3 vote pursuant to Cal. Rev. & Tax Code Section 7285.9). The proposed Charter Amendment would: • Apply only to City Council sponsored tax proposals (not to the City Council's action to place citizen sponsored initiative measures on a ballot). • Apply to both general and special tax proposals, not just general tax proposals. • Apply to tax proposals that impose, extend or increase a tax, which under the California Constitution are deemed to be "taxes." • Require five (5) of seven (7) votes of the City Council to present a Council- sponsored tax measure to the voters. Pursuant to California Constitution Article 13C, Section 1(e), the proposed Charter Amendment would not apply to: • A charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege. • A charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product. • A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof. • A charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property. • A fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government, as a result of a violation of law. • A charge imposed as a condition of property development 24 -2 • Assessments and property- related fees imposed in accordance with the provisions of California Constitution Article XIII D. The proposed Charter Amendment does not alter constitutional requirements for voter approval. Presently, the constitution requires a majority vote to impose general taxes, a 2/3 vote to impose special taxes and a 55% vote to impose ad valorem property taxes to fund school facility bonds. This amendment does not alter the constitutional timing requirement for placing general taxes on a ballot (such taxes may only be placed on a ballot during an election where members of the governing body are on the ballot, unless by unanimous vote a council determines that there is an emergency need). Finally, this amendment does not alter the constitutional and statutory processes, including the requirements for hearings and notice. The attached Resolution calls a General Municipal Election on November 8, 2016, which the City will be calling regardless for the election of members of the City Council, and orders on the ballot at that election a proposed Charter Amendment. Pursuant to the Elections Code, Charter Amendments of this nature may only be placed on Statewide General or Primary Election ballots. This ballot measure satisfies those requirements. At a later date, the City Clerk will bring forward resolutions relating to (1) consolidating this election with the County -run general election, (2) authorizing any member of the City Council to author ballot arguments, (3) authorizing rebuttal arguments and (4) directing the City Attorney prepare an impartial analysis of the measure. As City Council Member Keith Curry suggested this Charter Amendment to the City Council, he has also asked that he be designated to draft the argument and rebuttal argument, if any, for this ballot measure. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Description Attachment A - Resolution 24 -3 ATTACHMENT A RESOLUTION NO. 2015- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY NOVEMBER 8, 2016 AND ORDERING THE SUBMISSION OF A PROPOSED AMENDMENT TO THE CITY CHARTER TO THE ELECTORS, THE "NEWPORT BEACH TAXPAYER PROTECTION ACT" (MEASURE NO. _ — REQUIRE 5 OF 7 VOTES OF THE CITY COUNCIL TO PROPOSE TAXES) WHEREAS, pursuant to authority provided by Section 3 of Article XI of the Constitution of the State of California, Section 1000 of the Newport Beach City Charter, and Section 1415(a)(2) of the Elections Code of the State of California, the City Council of the City of Newport Beach ( "City ") desires to submit to the qualified electors a proposed amendment to the Charter that increases the vote requirement necessary for the City Council to present to the voters most City Council sponsored proposals that impose, increase or extend a tax, from the current majority vote (in most cases) to a vote of 5 of the total membership of the City Council; WHEREAS, the City Council of the City of Newport Beach is authorized by the California Constitution, Section 1000 of the Newport Beach City Charter, and by State statute to submit this proposed amendment to the Newport Beach City Charter to the qualified electors of the City at a general municipal election to be held the same date as the November 8, 2016 statewide general election; and WHEREAS, under the provisions of Article X, Section 1000, of the Charter of the City of Newport Beach, a general municipal election shall be held on November 8, 2016 for the election of municipal officers and for such other purposes as the City Council may prescribe, to wit the placement of amendments to the City Charter. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1: Pursuant to Section 3 of Article XI of the California Constitution, Section 1000 of the Newport Beach City Charter and Section 1415(a)(2) of the Elections Code of the State of California, there is called and ordered to be held in the City of Newport Beach on Tuesday, November 8, 2016, a general municipal election for the purpose of submitting the following proposed Charter Amendment measure to the qualified voters of the City: The full text of the proposed Charter Amendment measure (with additions to and deletions from the current Charter text indicated thereon) is set forth on Exhibit 1 attached hereto and incorporated herein by this reference as if set forth in full. Said proposed Charter Amendment measure shall appear upon the ballots for said municipal election in substantially the following form: MEASURE-- Yes REQUIRE 5 OF 7 VOTES OF THE CITY COUNCIL TO PROPOSE TAXES. Shall Section 1115 be added to the Newport Beach City Charter to require at least five votes of the total City Council membership in order to place City Council sponsored general or special tax No proposals on a ballot for voter consideration? SECTION 2: The ballots to be used at the November 8, 2016 election shall be in a form and content required by law. SECTION 3: The City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. SECTION 4: The polls shall be open at seven o'clock a.m. (7:00 a.m.) on the day of the election and shall remain open continuously from that time until eight o'clock p.m. (8:00 p.m.) of the same day when the polls shall be closed pursuant to California Elections Code Section 10242, except as provided in California Elections Code Section 14401. SECTION 5: In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 6: Notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 7: The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED, APPROVED AND ADOPTED on this 26th day of May, 2015. Edward D. Selich Mayor ATTEST: Leilani I. Brown City Clerk 24 -5 Exhibit 1 to City Council Resolution Regarding Charter Amendment to Require 5 of 7 Votes of the City Council to Propose Taxes CHARTER AMENDMENT MEASURE NO. SECTION 1: TEXT OF AMENDMENT TO NEWPORT BEACH CITY CHARTER The City Charter of the City of Newport Beach is hereby amended as follows (underlining showing additions and s4ike thFaugh showing deletions): Section 1115. City Council Sponsored Tax Proposals — 5 of 7 Vote Requirement. Notwithstanding any conflicting provision of this Charter, no City Council sponsored proposal to impose, extend, or increase a tax shall be presented at an election unless the ordinance or resolution proposing to impose, extend, or increase such tax is approved by at least five (5) of seven (7) votes of the City Council. As used in this section, the term "tax" shall mean both a "general tax" and a "special tax" as defined in Article XIIIC, Section 1, subdivisions (a) and (d), respectively, of the California Constitution. SECTION 2: BALLOT DESCRIPTION As provided in Government Code section 34458.5, the following ballot description is included in this proposed Charter Amendment measure: CHARTER AMENDMENT (Section 1115): This Charter Amendment measure would amend the City Charter to add Section 1115. Proposed Section 1115 would require any tax proposal sponsored by the City Council that imposes, extends or increases a tax to be approved by at least five (5) of seven (7) votes of the City Council to be presented to the voters at an election, whereas presently only a majority vote of the City Council is required to place most tax measures on the ballot for voter consideration. The term "tax" in proposed Section 1115 means both "general' and "special' taxes as defined in Article XIIIC of the California Constitution. A "general tax" is defined in the California Constitution as a tax imposed for general governmental purposes. A "special tax" is defined in the California Constitution as a tax imposed for specific purposes, including a tax imposed for a specific purpose which is placed into a general fund. This amendment does not give the City Council power to raise its compensation or that of other City officials without voter approval. SECTION 3: SEVERABILITY It is the intent of the people that the provisions of this Charter Amendment measure are severable and that if any provision of this Charter Amendment measure, or the application thereof to any person or circumstance, is held invalid such invalidity shall not 24 -6 affect any other provision or application of this Charter Amendment measure which can be given effect without the invalid provision or application. SECTION 4: CONFLICTING MEASURES In the event this Charter Amendment measure and another measure or measures relating to City Council vote approval requirements for the matters described herein shall appear on the same general municipal election ballot, the other measure or measure shall be deemed to be in conflict with this Charter Amendment measure. In the event that this Charter Amendment measure receives a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and the provisions of the other measure or measures shall be null and void. If this Charter Amendment measure is approved by the voters but superseded in whole or in part by any other conflicting measure approved by the voters at the same election, and such other conflicting measure is later found held invalid, this measure shall be self - executing and given full force and effect. �9X011IC0Vn4aaxt11 ►V /:8B7_A10 This Charter Amendment measure shall become effective in the manner allowed by law. 24 -7