2013 Dec 11 - CC PACKET SPCSPECIAL
MEETING AGENDA
EL SEGUNDO CITY COUNCIL
CITY COUNCIL CHAMBERS - 350 Main Street
The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items
Unless otherwise noted in the Agenda, the Public can only comment on City - related business that is within the
jurisdiction of the City Council and /or items listed on the Agenda during the Public Communications portion of the
Meeting. The time limit for comments is five (5) minutes per person.
Before speaking to the City Council, please come to the podium and state: Your name and residence and the
organization you represent, if desired. Please respect the time limits.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact City Clerk, 310 -524 -2305.
Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
SPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL
WEDNESDAY, DECEMBER 11,2013 5:00 P.M.
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE — Council Member, Marie Fellhauer
PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit per person, 30
minute limit total). Individuals who have received value of $50 or more to communicate to the City Council on behalf of
another, and employees speaking on behalf of their employer, must so identify themselves before addressing the City Council.
Failure to do so is a misdemeanor and punishable by a fine of $250.
UNFINISHED BUSINESS:
1. Consideration and possible action regarding (1) adopting a resolution placing a
general tax ballot measure on the April 8, 2014 general municipal election (the
"Consolidated Tax Measure ") that would increase the Utility User Tax ( "UUT ")
rate on non - residential users and impose a UUT on residents; increase the
Transient Occupancy Tax ( "TOT ") rate; impose a parking tax on non - residential
parking, except for employee, restaurant and theater parking, and valet parking
( "Parking Tax "); reduce the Business License Tax Credit ( "BLT Credit "); (2)
direct the City Attorney's Office to prepare an impartial analysis of the ballot
measure and find the ballot measure to be exempt from review under the
California Environmental Quality Act ( "CEQA "); (3) adopting a resolution
regarding ballot arguments for the ballot measure; (4) appointing a council
member or members to draft ballot arguments regarding the ballot measure;
1
and (5) adopting a resolution stating the Council's purpose and intent of using
a portion of the funds from the ballot measure, if it passes, on capital
improvement projects, if feasible, and allowing the Chamber of Commerce to
appoint two members to the Capital Improvement Project Advisory Board.
(Fiscal Impact: Increase in general fund revenues in the amount of
approximately $6.6 million during the first three years following passage of the
ballot measure which would be reduced to approximately $5.9 million
thereafter.)
Recommendation — 1) Adopt a resolution placing the Consolidated Tax Measure on
the April 8, 2014 general municipal election; 2) Adopt a resolution directing the City
Attorney's Office to prepare an impartial analysis of the Consolidated Tax Measure;
3) Adopt a resolution regarding ballot arguments regarding the ballot measure; 4)
Appoint a council member or members to draft ballot arguments regarding the ballot
measure; 5) Adopt a resolution stating the Council's purpose and intent of using a
portion of the funds from the ballot measure, if it passes, on capital improvement
projects, if feasible, and allowing the Chamber of Commerce to appoint two members
to the Capital Improvement Project Advisory Board; and 6) Take such additional,
related, action that may be desirable.
ADJOURNMENT—
POSTED:
DATE: 12.10 .13
TIME: Ilk; 5
NAME:6
2
2
EL SEGUNDO CITY COUNCIL
AGENDA STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: December 11, 2013
AGENDA HEADING: Unfinished Business
Consideration and possible action regarding (1) adopting a resolution placing a general
tax ballot measure on the April 8, 2014 general municipal election (the "Consolidated
Tax Measure ") that would increase the Utility User Tax ( "UUT ") rate on non - residential
users and impose a UUT on residents; increase the Transient Occupancy Tax ( "TOT ")
rate; impose a parking tax on non - residential parking, except for employee, restaurant and
theater parking, and valet parking ( "Parking Tax "); reduce the Business License Tax
Credit ( "BLT Credit "); (2) direct the City Attorney's Office to prepare an impartial
analysis of the ballot measure and find the ballot measure to be exempt from review
under the California Environmental Quality Act ( "CEQA "); (3) adopting a resolution
regarding ballot arguments for the ballot measure; (4) appointing a council member or
members to draft ballot arguments regarding the ballot measure; and (5) adopting a
resolution stating the Council's purpose and intent of using a portion of the funds from
the ballot measure, if it passes, on capital improvement projects, if feasible, and allowing
the Chamber of Commerce to appoint two members to the Capital Improvement Project
Advisory Board.
(Fiscal Impact: Increase in general fund revenues in the amount of approximately $6.6
million during the first three years following passage of the ballot measure which would
be reduced to approximately $5.9 million thereafter.)
RECOMMENDED COUNCIL ACTION:
1. Adopt a resolution placing the Consolidated Tax Measure on the April 8, 2014 general
municipal election;
2. Adopt a resolution directing the City Attorney's Office to prepare an impartial analysis
of the Consolidated Tax Measure;
3. Adopt a resolution regarding ballot arguments regarding the ballot measure;
4. Appoint a council member or members to draft ballot arguments regarding the ballot
measure;
5. Adopt a resolution stating the Council's purpose and intent of using a portion of the
funds from the ballot measure, if it passes, on capital improvement projects, if feasible,
and allowing the Chamber of Commerce to appoint two members to the Capital
Improvement Project Advisory Board; and
6. Take such additional, related, action that may be desirable.
ATTACHED SUPPORTING DOCUMENTS:
September 24, October 1, November 5, 19, 26 and December 3, 2013 Staff Reports with
Attachments
Resolutions Identified in Agenda Description
December 3. 2013 Letter from the Chamber of Commerce
Communications Received From Members of the Public
3
FISCAL IMPACT: Potential
Amount Budgeted: Increase in general fund revenues in the amount of
approximately $6.6million during the first three years following passage of the ballot
measure which would be reduced to approximately $5.9 million thereafter
Additional Appropriation: N/A
Account Number(s):
ORIGINATED BY: Mark Hensley, City Attorny��k
REVIEWED BY: Tracy Weaver, City C.lerrand D borah Cullen, Finance Directory -
APPROVED BY: Greg Carpenter, City Manager }-
BACKGROUND AND DISCUSSION:
The City was able to balance its budget for fiscal year 2013/2014 based upon receiving two
payments totaling approximately $11.5 million from Chevron pursuant to the alternative tax
agreement the City entered into with Chevron earlier this year. This is the only year that the City
will receive two payments and accordingly it is projected that the City will have a general fund
shortfall of approximately $3.6 million for fiscal year 2014/2015 and subsequent fiscal years.
Additionally, the City needs approximately $2.0 million per year to fund necessary capital
improvement projects.
The City Council has met seven times (September 24, October 1, November 5, 19, 26 and
December 3, 2013 and this meeting) to discuss this budget shortfall and the potential of placing a
tax measure on the April 2014 general municipal election to address the projected budget
shortfalls and the need for capital improvement funds (copies of the staff reports, including
attachments, are attached to this staff report). The City Manager also conducted 13 outreach
meetings to educate businesses and residents regarding the City's fiscal condition.
The El Segundo Chamber of Commerce has been engaged in the process through attendance of
the Council Meeting and meetings with its membership. On December 3, 2013, the Chamber
submitted a letter to the City that set forth a proposal for a tax measure in which the Chamber
committed to "participate in a collaborative citywide campaign effort to see passage of the tax
proposals we have recommended" if the City supported the Chamber's proposal. The Chamber's
proposal is to increase the City's general fund revenues by $6,481,450 per year for the first three
years following passage of a tax measure by increasing the UUT on non - residential users by
2.5 %, imposing a 2.5% UUT on residents, increasing the TOT by 2 %, imposing a parking tax
(except on employee, restaurant, theater and valet parking), and reducing the BLT Credit to 20 %.
After the first three years, the UUT on both residential and non - residential uses would be
reduced by .5% and the BLT Credit would be reduced to 10% for purposes of lowering the
general fund revenues received from the tax measure to $5,886, 225 per year.
After staff received the Chamber's proposal there was a discrepancy noted regarding the BLT
credit. Staff recommended the following changes to achieve the general fund revenues set forth
in the Chamber's initial proposal. Based on the actual BLT credits calculated from the prior year
11
staff modified the proposal to $6,585,744 reducing the BLT credits in the first three years from
20% to 10% and modifying the revenues to $5,914,112 reducing the BLT credits from 10% to
5% after the first three years. The modification is consistent with Chamber's intent with regard to
the amount of revenues sought through the tax measure except that it is estimated the City would
receive approximately $100,000 additional revenues during the first three years following
approval of the tax measure and approximately $27,000 additional revenues per year thereafter.
These modifications were approved by the Chamber.
In addition to the above, the Chamber's proposal requested that all of the tax issues be placed on
a single ballot measure, an action by the Council to show its intent to utilize a portion of the tax
measure funds for capital improvement projects, and to formalize the process whereby two
Chamber members are appointed to the City's Capital Improvement Project Advisory Board.
The Chamber also requested that the City not place an advisory measure on the ballot regarding
using some of the tax measure funds for the benefit of the El Segundo Unified School District.
At the December 3, 2013, Council Meeting, after receiving public communications and
deliberating on the Chamber's proposal, the Council except for Council Member Atkinson (who
advocated for somewhat higher taxes and no reduction in taxes as proposed by the Chamber)
directed staff to prepare the documents necessary to place the tax measure on the ballot
consistent with the Chamber's proposal and notice a Special Council Meeting for potentially
taking action on the tax measure. The taxes called for the ballot measure are general taxes as
they are not being pledged to any particular purpose. Accordingly, a majority vote is necessary
to pass the measure.
Attached are the resolutions necessary for placing the tax measure on the April 2014 general
municipal election. As has been set forth in prior staff reports, four Council Members must vote
to pass the resolution in order to place the tax measure on the ballot. For purposes of meeting the
intent of a reducing the BLT Credit and UUT taxes after three years the initial BLT Credit will
first be applied for taxable calendar year 2015 and then will be reduced further in 2018. It is not
possible to implement the BLT Credit for the 2014 calendar year as the ballot measure will not
be voted on until well after the vast majority of the businesses will have paid their 2014 business
license taxes. The initial 2.5% increase in the UUT is drafted to take effect on July 1, 2014 and
then to be reduced by .5% starting July 1, 2017. The tax measure would allow the City to
reduce or suspend taxes by resolution in the event the City's revenues grow at higher than
currently anticipated amounts in future years.
There is also a resolution that would direct the City Attorney's Office prepare an impartial
analysis of the ballot measure. This is discretionary and the Council has the option of adopting
or not adopting this portion of the resolution.
Also attached for consideration by the Council is a resolution setting forth the requirements for
the submission of ballot arguments. The resolution is generally a restatement of California law.
The Council has the discretion to appoint one or more of its members to submit ballot arguments.
Finally, attached for Council's consideration is a resolution that sets for the Council's purpose
and intent regarding the use of tax measure funds if the ballot measure passes. The resolution
calls for 1/3 or. approximately $2.0 million dollars to be utilized for capital improvement projects
to the extent feasible. This is only an advisory action by the Council as it cannot by resolution
5
restrict the use of the tax measure funds as they will be general fund revenues that can be used
for any lawful municipal purpose. Moreover, given the unpredictability of the economy and
expenses that the City may face in upcoming years it may not be feasible to utilize the tax
measure funds as proposed by the resolution. The resolution also formalizes the ability of the
Chamber to appoint two of its members to the Capital Improvement Advisory Board.
0
EL SEGUNDO CITY COUNCIL MEETING DATE: September 25, 2013
AGENDA STATEMENT AGENDA HEADING: Unfinished Business
AGENDA DESCRIPTION:
Consideration and possible action to direct staff to prepare the necessary documents to
potentially: amend the City's tax codes for purposes of increasing the City's revenues,
including but not limited to: potentially eliminating the sales tax credit granted to
businesses and create a parking lot tax as part of the City's business license taxes
( "BLT "); increasing the utility user tax ( "UUT "); increasing the transient occupancy tax
( "TOT "); and, imposing a UUT on the residents. Additionally, direct staff as to whether
to prepare an advisory ballot measure that would reflect whether or not the voters believe
a portion of any proposed tax increase should be provided to the El Segundo Unified
School District. (Fiscal Impact: Unknown).
RECOMMENDED COUNCIL ACTION:
1. Direct staff to prepare the necessary documents to potentially: amend the City's tax
codes for purposes of increasing the City's revenues, including but not limited to:
(a) eliminating the sales tax credit granted to businesses which reduces the
amount of BLT the businesses pay and create a parking lot business license
tax;
(b) increasing the utility user tax imposed on businesses;
(c) increasing the transient occupancy tax;
(d) imposing a utility user tax on the residents; and
(e) amending other portions of the City's tax codes to increase City revenues;
2. Direct staff as to whether or not to prepare an advisory ballot measure that would
reflect whether or not the voters believe a portion of any proposed tax increase should
be provided to the El Segundo Unified School District.
3. Take other related action.
ATTACHED SUPPORTING DOCUMENTS:
Attachment A — UUT and TOT Comparisons with Nearby Cities
FISCAL IMPACT:
Amount Budgeted: $N /A
Additional Appropriation: N/A
Account Number(s): NIA
ORIGINATED BY: Mark Hensley, City Attorney
REVIEWED BY: Deborah Cullen. irector of Finance
APPROVED BY: Greg Carpenjity Manager
7
BACKGROUND AND DISCUSSION:
At the August 22, 2013, City Council Strategic Planning Workshop, the Council was presented
with budget information for fiscal years 2013/2014 and 2014/2015 which shows that the City has
had and continues to have a budget that is not structurally balanced. The payments the City
receives from Chevron pursuant to agreement entered into within Chevron earlier this year is
providing the revenues necessary to balance the 2013/2014 budget. However, based on
forecasted revenues and expenditures staff is projecting a budget shortfall of $ 3,602,802 million
for fiscal year 2014/2015 and if the City were to increase expenditures for capital projects
recommended by staff the deficit increases to $5,602,802.
The Council was presented with several options for purposes of beginning the discussion of how
to balance the City's budget in future years, including (1) reducing City expenditures by
reducing or eliminating City services; (2) contracting out public safety services; or (3) increasing
the City's tax revenues. With regard to the latter option, staff provided Council with an
overview of different scenarios for amending the City's tax codes and how such would increase
City revenues. The Council also raised issues such as potentially placing an advisory measure on
the ballot to determine if the voters would want some portion of any potential new tax revenues
provided to the ESUD. Additionally, Council requested some information with regard to
potentially imposing a utility user tax on residents. City taxes are currently only imposed on
businesses within the City.
Staff is seeking direction from the Council with respect to what tax measures, if any, that
Council wants to place on the April 2014 general municipal election. Council has until January
8, 2014 to adopt the necessary documents to place ballot measure on the April election.
However, staff thought it was prudent to place this matter before Council as soon as possible
given that staff does not know how long Council may wish to discuss and consider its options
and, depending on Council direction, staff needs sufficient time to prepare the necessary
documents for Council action. The potential tax increases are proposed to be general taxes
(meaning they will be deposited into the City's general fund and can be used for any lawful local
government purpose) and the proposed increases require approval by a majority of the electorate
pursuant to Article XIII C of the California Constitution. To place a general tax increase on the
general municipal election four of the five Council Members must pass the resolution(s)
necessary to place the proposed increase(s) on the ballot.
Utility Users Tax
The City currently imposes a 3% UUT on businesses for electricity, gas, water services and 2%
for communication services. As shown on Exhibit A, the City charges less UUT than the
surrounding jurisdictions. Staff estimates that for each 1% increase (in all UUT's combined) the
City will collect estimated additional annual revenues of $1,401,204.
If the Council were to impose a UUT on residents, for each 1% of tax imposed on residents
electricity, gas and water services the City would collect approximately $342,350 of additional
annual revenues.
Transient Occupancy Tax
The City currently imposes an 8% TOT on individuals occupying hotels or motels within the
City. Exhibit A reflects that the City charges less, and in some cases substantially less than the
surrounding jurisdictions. Staff estimates that for each 1% increase in TOT the City will collect
an additional $637,500 in annual revenues.
Business License Taxes
Elimination of Business Sales Tax Credit
The City currently provides businesses with a credit towards their annual business license tax in
an amount equal to the sales tax payments the City receives from businesses. If the City
eliminates this credit, it is estimated that the City's annual BLT revenues will increase annually
in the amount of $1,100,000.
Imposing a Parking Lot Tax
Imposition of a 10% citywide parking tax would provide up to $1,158,392 in additional business
license taxes depending on which of the following taxes were collect:
1. Airport parking (long -term parking) estimate revenue - $295,000;
2. Transient validation and valet parking estimated revenue - $346,404;
3. Monthly tenant parking estimated revenue - $516,900
Advisory Ballot Measure — ESUSD
The Council expressed some interest in potentially putting an advisory ballot measure on the
election for purposes of seeing if the voters would like to see some portion of the revenues from
any proposed tax increase provided to the ESUSD. The Council can place such a measure on the
ballot but it has no binding legal effect and will not require that the City provide any revenues
form any increase in tax revenues the School District. However, the Council and future Council
can consider the results of such an advisory measures as the Council adopts its annual budget.
This would require two separate ballot measures. The questions might look like this:
Measure A:
"SHALL THE ORDINANCE (ORDINANCE NO. 123) AUTHORIZING THE
IMPOSITION OF A PARKING TAX AT AN ANNUAL FLAT RATE OF $X
DOLLARS ($X) PER PARKING SPACE BE ADOPTED?"
Measure B:
SHALL THE ORDINANCE (ORDINANCE NO. 456) ADVISING THE CITY
OF EL SEGUNDO REGARDING THE EXPENDITURE OF NEW PARKING
TAX REVENUE BE ADOPTED?
0
Procedural Issues Re Preparation of Ballot Measures
What Specific Amendments/Increases Does Council Want to Place on the Ballot?
Staff needs Council direction regarding which taxes, if any, that four members of the Council
can agree on amending and/or increasing. It only takes three members of Council to place the
advisory measure on the ballot, but unless four Council Members can agree on the proposed
amendments /increases to the City's tax code, an advisory measure would be moot.
Does Council Want the Proposed Amendments/Increases combined into one ballot
measure or does it want separate ballot measures for each proposed
amendment /increase?
Council has the option of either combining all of the proposed amendments and /or increases into
one ballot measure (except an advisory ballot measure which must be a separate measure) or
placing separate ballot measure for each amendment and /or increase on the ballot. This is a
policy consideration for the Council. Council may wish to consider whether it wants all of the
measures tied together with the understanding if it passes or fails that all of the proposed
amendments pass or fail as opposed to having each amendment/increase voted on separately.
An additional consideration is that a ballot measure question can only contain 75 words. Thus,
depending on number of amendments /increases that the Council wants to include in the ballot
measure then it may become more difficult to specifically describe each amendment/increase
than it would be if all of the amendments /increases are placed on the ballot as separate measures.
For example, if the Council were to place all of the amendments /increases before the electorate
then the ballot question might take the form of one of the two options below:
"SHALL THE ORDINANCE (ORDINANCE NO. 123) ENTITLED "AN
INITIATIVE MEASURE AUTHORIZING A ONE PERCENT (1 %) INCREASE
TO THE UTILITY USER TAX, BUSINESS LICENSE TAX, AND
TRANSIENT OCCUPANCY TAX TO FUND GENERAL MUNICIPAL
SERVICES, INCLUDING, WITHOUT LIMITATION, POLICE PROTECTION
AND INVESTIGATIONS, SUPPRESSION OF GANG AND DRUG RELATED
CRIMES, REMOVAL OF GRAFFITI, RAPID RESPONSE TO
EMERGENCIES, SERVICES TO SENIOR CITIZENS, AND MAINTENANCE
AND REPAIR OF CITY STREETS AND LANDSCAPING" BE ADOPTED?"
[70 words]
"SHALL THE ORDINANCE ENTITLED "AN INITIATIVE MEASURE
AUTHORIZING A 1% INCREASE TO THE UTILITY USER TAX; A 2%
INCREASE TO THE BUSINESS LICENSE TAX; AUTHORIZING A 3%
TRANSIENT OCCUPANCY TAX; REPEALING THE BUSINESS
INCENTIVE TAX CREDIT; AND ADDING A NEW PARKING TAX TO
FUND GENERAL MUNICIPAL SERVICES, INCLUDING, WITHOUT
LIMITATION, POLICE PROTECTION AND INVESTIGATIONS, RAPID
RESPONSE TO EMERGENCIES, SERVICES TO SENIOR CITIZENS, AND
MAINTENANCE AND REPAIR OF CITY STREETS" BE ADOPTED?" (71
words)
10
Alternatively, if each is proposed separately then the measures would be virtually identical and
read as follows:
"SHALL THE ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE
CHAPTER 3 -7 TO INCREASE THE UTILITY USER TAXES BY 1% TO
FUND GENERAL MUNICIPAL SERVICES INCLUDING, WITHOUT
LIMITATION, POLICE PROTECTION AND CRIME SUPPRESSION
SERVICES, FIRE PREVENTION AND SUPPRESSION SERVICES, AND
PARK AND RECREATION FACILITIES AND SERVICES BE ADOPTED?"
"SHALL THE ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE
§ 3 -4 -3 TO INCREASE THE TRANSIENT OCCUPANCY TAXES BY 1% TO
FUND GENERAL MUNICIPAL SERVICES INCLUDING, WITHOUT
LIMITATION, POLICE PROTECTION AND CRIME SUPPRESSION
SERVICES, FIRE PREVENTION AND SUPPRESSION SERVICES, AND
PARK AND RECREATION FACILITIES AND SERVICES BE ADOPTED?"
"SHALL THE ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE
TO ELIMINATE THE BUSINES LICENSE SALES TAX CREDIT AND
ESTABLISH A PARKING TAX TO FUND GENERAL MUNICIPAL
SERVICES, INCLUDING, WITHOUT LIMITATION, POLICE PROTECTION
AND INVESTIGATIONS, SUPPRESSION OF GANG AND DRUG RELATED
CRIMES, REMOVAL OF GRAFFITI, AND RAPID RESPONSE TO
EMERGENCIES BE ADOPTED?"
Conclusion
Staff wanted to place this issue before Council well in advance of the cut -off date so that Council
would have adequate time to consider its options and staff would have adequate time to prepare
the necessary documents, if so directed by Council, to place ballot measures on the April general
municipal election.
11
ATTACHMENT A -
UUT & TOT COMPARISONS WITH NEARBY CITIES
GAS, ELECTRIC Et WATER
UTILITY USERS' TAX
12% All Charge Residential UUT except for City of EL Segundo
10%
8%
6%
4% 3% Pq
0%
TRANSIENT OCCUPANCY TAX
14%
12% _
10%
8%
6%
4%
2% —
tea° t4P ar
4�o La "�� ( eL
ti
,trac 'S �
12
ITEM #8 FOR THE OCTOBER 1, 2013 CITY COUNCIL MEETING
AGENDIZED ONLY, NO STAFF REPORT
NEW BUSINESS
8. Consideration and possible action to direct the staff to conduct a public
information program related to the City's financial situation, economic forecast
and options for addressing future budget deficits.
Recommendation— 1) Direct staff to conduct a public information program; 2)
Alternatively, discuss and take other possible action related to this item.
13 48
EL SEGUNDO CITY COUNCIL
AGENDA STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: November 5, 2013
AGENDA HEADING: Consent Agenda
Consideration and possible action regarding 1) adoption of resolutions calling for,
requesting Los Angeles County services, and adopting regulations for candidate
statements for the General Municipal Election, April 8, 2014; 2) approval of a standard
professional services agreement with Martin & Chapman Co. for election support and
services. (Fiscal Impact: $69,200)
RECOMMENDED COUNCIL ACTION:
(1) Adopt resolutions calling for, requesting Los Angeles County services, and adopting
regulations for candidate statements for the General Municipal Election, April 8,
2014;
(2) Authorize the City Manager to execute a standard professional services agreement, in
a form approved by the City Attorney, with Martin & Chapman Co. to provide
election support and services;
3) Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
Draft Resolutions
Scope of Services
FISCAL IMPACT: Included in Adopted Budget
Amount Budgeted: $69,200
Additional Appropriation: No
Account Number(s): $29,200 - Elections Division, Various
$40,000 - 001 - 400 - 1302 -6214, Professional & Technical
ORIGINATED BY: Cathy Domann, Deputy City
� Clrrk H 0&
REVIEWED BY: Tracy Weaver, City Clerl
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
The General Municipal Election for two (2) City Council seats is to be held April 8, 2014. To
proceed with the regulations set forth by Government Code, the proposed resolutions should be
adopted before the opening of nominations beginning December 16, 2013 and ending January 13,
2014 (extended date January 15, 2014 if an incumbent does not file).
Additionally, it is requested that the City again enter into a professional services agreement, in an
amount not to exceed $40,000, with Martin & Chapman Co. They have provided excellent
14
11
379
election support to El Segundo for over three decades, are well known and trusted for their
invaluable election services, supplies, and guidance, and are utilized by over 200 cities, counties
and districts in California and Nevada.
Their scope of service includes, but is not limited to, pre - election materials, official ballots, ballot
counting equipment, vote by mail ballot tracking system, mailing services, foreign language
assistance and translations, legislation updates, professional opinions and election night support.
Their Anaheim location allows for timely delivery of supplies, election materials, and on -site
support.
Their many years of experience with El Segundo, individualized assistance,, and excellent customer
service will help ensure a smooth election process.
380
15
RESOLUTION NO.
A RESOLUTION PLACING TWO CITY COUNCIL, SEATS ON THE
APRIL 8, 2014 GENERAL MUNICIPAL ELECTION PURSUANT TO
ELECTIONS CODE § 1301.
The City Council of the city of El Segundo resolves as follows:
SECTION 1: Pursuant to Elections Code § 1301, the City Council calls for a general
municipal election to be held in the City of El Segundo on Tuesday, April 8, 3014, for the
purpose of electing two members of the City Council to four year terms. The exact form
of the question to be voted on at the election as it should appear on the ballot is as
follows:
"FOR MEMBER OF THE CITY COUNCIL — Vote for two"
SECTION 2: The polls will open at 7 a.m. on election day and remain open until 8 p.m.
SECTION 3: The City Council Chamber, 350 Main Street, El Segundo, is designated
the Central Counting Place where all ballots of the election will be tallied.
SECTION 4: The City Clerk is authorized to canvass the returns of the Municipal
Election. The election will be held in all respects as if there were only one election, and
only one form of ballot will be used.
SECTION 5: 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 6: This Resolution will become effective immediately upon adoption.
PASSED AND ADOPTED this 5th day of November, 2013.
Bill Fisher, Mayor
ATTEST:.
Tracy Weaver, City Clerk
APPROVED AS TO FOR PA:
Mark D. Hensley, City Attorne
381
16
RESOLUTION NO.
A RESOLUTION REQUESTING THAT THE LOS ANGELES COUNTY
BOARD OF SUPERVISORS PROVIDE ELECTION SERVICES TO THE
CITY OF EL SEGUNDO FOR THE GENERAL MUNICIPAL ELECTION
TO BE HELD ON TUESDAY, APRIL 8, 2014.
The City Council of the city of El Segundo resolves as follows:
SECTION 1: Pursuant to Elections Code § 10002, the City Council requests that the
Los Angeles County Board of Supervisors assist the City with its local election
scheduled for April 8, 2014.
SECTION 2: The services requested by the City include the following:
A. Listing of County precincts with number of registered voters in each so the
City may consolidate election precincts into City voting precincts, and maps of
the voting precincts;
B. List of poll workers the County uses for their elections;
C. Computer records of the names and addresses of all eligible registered voters
in the City;
D. Voter signature verification services as needed;
E. Provide additional election equipment and assistance to the City in
accordance with California law.
SECTION 3: The City will reimburse Los Angeles County for services performed
pursuant to this request and upon the City's receipt of a County invoice.
SECTION 4: The City Clerk is directed to forward a certified copy of this Resolution to
the Los Angeles Board of Supervisors and the Los Angeles County Clerk's office.
SECTION 5: The City Clerk is directed to certify and adopted of this Resolution; record
this Resolution in the book of the City's original resolutions, and make a minute of this
adoption of the Resolution in the City Council's records and the minutes of this meeting,
1.
382
17
SECTION 6: This Resolution will become effective immediately upon adoption and
remain effective unless repealed or superseded.
PASSED AND ADOPTED this 5t' day of November, 2013.
Bill Fisher, Mayor
ATTEST:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
By:
Karl I-l. Berger,
�r
Assistant City Attorney
9
IN
383
RESOLUTION NO.
A RESOLUTION ESTABLISHING REQUIREMENTS FOR CANDIDATE
STATEMENTS FILED WITH THE CITY CLERK TO BE INCLUDED WITH
VOTER INFORMATION FOR AN ELECTION ON TUESDAY, APRIL 8,
2014.
The City Council of the city of El Segundo resolves as follows:
SECTION 1: Pursuant to Elections Code § 13307, candidates seeking election to office
on April 8, 2014 may prepare a candidate's statement on forms provided by the City
Clerk.
SECTION 2: Statements filed in accordance with this Resolution may include the
following:
A. The candidate's name, age, and occupation; and
B. A statement consisting not more than two hundred (200) words outlining
the candidate's education and qualifications for office.
SECTION 3: The candidate's statement must conform with the following:
A. It may not identify the candidate's membership in any political party or
activity in partisan political organization;
B. It must be uniform in type and size and must be presented with block
paragraphs;
C. It may not include bolding, underlining, italics, asterisks, or other, similar,
type of formatting;
D. It must be typewritten using at least a 12 point font;
E. It must be filed in the City Clerk's office with a candidate's nomination
papers;
F. Although it may be withdrawn during the time for filing nomination papers
and until 5:00 p.m. the next working day after the close of the nomination
period, the statement may not be changed.
SECTION 4: Pursuant to 42 U.S.C. § 1973aa -1 a., the City Clerk will:
1.
384
19
A. Translate all candidate statements into Spanish;
B. Make translated copies of candidate statements publicly available;
SECTION 5: Candidates filing a statement must pay to the City the following:
A. A fee equal to a candidate's pro rata share of the total actual cost for
printing, handling, translating, and mailing candidate statements.
B_ At the time of filing a statement, the candidate will deposit $870 ($520 if
you do not want your statement printed in Spanish in the voter's pamphlet)
with the City Clerk which represents the following estimated costs:
The cost of printing the statement in the voter's pamphlet in
English: $300;
2. The cost of translating the statement into Spanish: $175; and
3. The cost of printing the statement in the voter's pamphlet in
Spanish: $300.
C. Should a candidate's actual pro rated cost exceed the amount on deposit
with the City Clerk, the candidate will, within thirty (30) days of receiving
an invoice, pay the City Clerk any difference between the deposit amount
and the actual cost.
D. Should a candidate's actual pro rated cost be less than the amount
deposited with the City Clerk, then the City Clerk will refund any
overpayment to a candidate within thirty (30) days after the election.
SECTION 0: Candidates may not include any additional materials in the sample ballot
package.
SECTION 7: The City Clerk is directed to provide a copy of this Resolution to each
candidate, or a candidate's representative, at the time nominating petitions are issued.
SECTION 8: The City Clerk is directed to certify and adopted of this Resolution; record
this Resolution in the book of the City's original resolutions, and make a minute of this
adoption of the Resolution in the City Council's records and the.minutes of this meeting.
2.
385
20
SECTION 9: This Resolution will become effective immediately upon adoption and
remain effective unless repealed or superseded.
PASSED AND ADOPTED this 5th day of November, 2013.
ATTEST:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
Mark D. Hensfpy, City Attorney.
Karl H. Berger,
Assistant City Attorney
3
Bill .Fisher, Mayor
386
21
EXHIBIT "A"
SCOPE OF SERVICES
Contractor shall render the following services in connection with the City of El Se ug ndo's General
Municipal Election to be held on Tuesday, April 8, 2014:
a. The Contractor shall furnish to the City the election services and supplies which shall include,
but not be restricted to the following:
• Pre - election, nomination, mail ballot, and precinct supplies
• Reports — voter registration and polling places
• Vote by mail tracking system
• Vote by mail supplies
• Insert and mail permanent vote by mail ballots (optional)
• Voter information pamphlets
• Ballots, including test /duplicate ballots and privacy sleeves
• Ballot counting /election night supplies
• Instruction and procedures manuals
• Forms and notices
• Mailing services
• Delivery services
b. Contractor shall be "on call" by telephone. This means that Contractor shall be available at any
time during regular business hours to the Contract Officer, or his/her designee, prior to and
during the election, and until the completion of the official canvass of the election, and during
the same period to, upon request, appear in person and work in cooperation with the Contract
Officer, or his/her designee, upon any election task or problems which may arise.
c. Contractor shall furnish additional working forms, outlines, check lists and schedules which
will aid the Contract Officer, or his /her designee, in keeping track of procedural details of the
election. Such documents shall include, but are not limited to, forms, outlines, check lists and
schedules identified in Contractor's "Election Handbook ", "Order Form for Cities Conducting
Own Election ", and "City Information Fact Sheet Regarding Your Upcoming Election ".
d. Contractor shall prepare and mail the Voter Information Pamphlets to all eligible voters in the
city no later than 21 days prior to the election.
e. Contractor shall secure the services of qualified foreign language translators to ensure that all
relevant election materials comply with the federal Voting Rights Act and state election laws.
f. Contractor shall otherwise provide such special and unique services, in close cooperation with
the Contract Officer, or his/her designee, as may be necessary for the successful conduct of the
election.
387
A -1 22
EXHIBIT "B"
SCHEDULE OF COMPENSATION
Compensation for supplies provided and services rendered pursuant to the terms of this contract
shall not exceed $40,000.
2. Payment will be made in two installments by the City, upon the completion of the delivery of
the supplies and the furnishing of the required services for the election and subsequent to the
City's receipt of an invoice from Contractor.
A. The first installment shall compensate Contractor for the candidate statement
portion of the sample ballot pamphlet.
B. The second installment shall compensate Contractor for all other services
rendered by Contractor upon completion of the election.
3. In the event that more or less supplies are actually furnished than is shown in this Agreement,
the varied amount of such supplies will be billed accordingly. Estimated pamphlet prices are
based on the number of registered voters and the election materials will be provided to voters in
English.
B -1 23 388
EL SEGUNDO CITY COUNCIL
AGENDA STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: November 19, 2013
AGENDA HEADING: Unfinished Business
Consideration and possible action to direct staff to prepare the necessary documents to
potentially place ballot measures on the April 2014 election to amend the City's tax codes
for purposes of increasing the City's revenues, including but not limited to: potentially
eliminating the sales tax credit granted to businesses and create a parking lot tax as part
of the City's business license taxes ( "BLT "); increasing the utility user tax ( "UUT ");
increasing the transient occupancy tax ( "TOT "); and, imposing a UUT on the residents.
Additionally, direct staff as to whether to prepare an advisory ballot measure that would
reflect whether or not the voters believe a portion of any proposed tax increase should be
provided to the El Segundo Unified School District. (Fiscal Impact: Unknown).
RECOMMENDED COUNCIL ACTION:
Direct staff to prepare the necessary documents to potentially place ballot measures
on the April 2014 election to amend the City's tax codes for purposes of increasing
the City's revenues, including but not limited to:
(a) eliminating the sales tax credit granted to businesses which reduces the
amount of BLT the businesses pay and create a parking lot business license
tax;
(b) increasing the utility user tax imposed on businesses;
(c) increasing the transient occupancy tax;
(d) imposing a utility user tax on the residents; and
(e) amending other portions of the City's tax codes to increase City revenues;
2. Direct staff as to whether or not to prepare an advisory ballot measure that would
reflect whether or not the voters believe a portion of any proposed tax increase should
be provided to the El Segundo Unified School District.
3. Take other related action.
ATTACHED SUPPORTING DOCUMENTS:
Attachment A — UUT and TOT Comparisons with Nearby Cities
Attachment B — Survey results and comments —All responses
Attachment C — Survey results and comments— Registered Voters
FISCAL IMPACT:
Amount Budgeted: $N /A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Mark Hensley, City Attorney
REVIEWED BY: Deborah Cullen, Director of Finance
APPROVED BY: Greg Carpenter, City Manager
24
BACKGROUND AND DISCUSSION:
At the August 22, 2013, City Council Strategic Planning Workshop, the Council was presented
with budget information for fiscal years 2013/2014 and 2014/2015 which shows that the City has
had and continues to have a budget that is not structurally balanced. The payments the City
receives from Chevron pursuant to agreement entered into within Chevron earlier this year is
providing the revenues necessary to balance the 2013/2014 budget. However, based on
forecasted revenues and expenditures staff is projecting a budget shortfall of $ 3,602,802 million
for fiscal year 2014/2015 and if the City were to increase expenditures for capital projects
recommended by staff the deficit increases to $5,602,802.
The Council was presented with several options for purposes of beginning the discussion of how
to balance the City's budget in future years, including (1) reducing City expenditures by
reducing or eliminating City services; (2) contracting out public safety services; or (3) increasing
the City's tax revenues. With regard to the latter option, staff provided Council with an
overview of different scenarios for amending the City's tax codes and how such would increase
City revenues. The Council also raised issues such as potentially placing an advisory measure on
the ballot to determine if the voters would want some portion of any potential new tax revenues
provided to the ESUD. Additionally, Council requested some information with regard to
potentially imposing a utility user tax on residents. City taxes are currently only imposed on
businesses within the City.
On September 25, 2013 staff made a presentation to Council for consideration and possible
action to direct staff to prepare documents for potential tax increases. During this meeting there
was consensus from Council to direct staff to prepare a public information program related to the
City's financial situation. Staff was instructed to coordinate dates, times and venues for the
public information meetings with as many community groups and citizenry as possible.
Included in this list were all Commission, Committee and Board meetings. Council also asked
that staff create a survey that can be handed out at each meeting to gauge community /business
feedback.
A financial presentation with details regarding the City's financial position and 3 -year forecast
was prepared. Included in this presentation were the options and potential tax increases that were
previously presented to Council. In an effort to disseminate this information to all residents a
video was created and made available on the City's website and the local cable channel.
Additionally, 3 outreach meetings were scheduled for the general public, (two weekday meetings
and one weekend meeting) and a letter was mailed to all residents that have a water billing
account with details (time /place) for the scheduled outreach meetings. The City also ran 2
advertisements in the El Segundo Herald and flyers with outreach information were made
available at all City facilities.
Since September 25th the City Manager has made this presentation at 13 meetings and conducted
surveys at each of these venues. The community groups include the Friends of the Library, Park
Vista, Rotary and Kiwanis clubs and the Boards and Commissions include Recreation and Parks,
Planning Commission and El Segundo Board of Education. Approximately 170 individuals
have completed the survey consisting of 10 questions /options related to demographics, tax
increases and City services. The results of the survey showed that generally the individuals
14
25
participating were satisfied with City services and a majority supported a potential tax increase.
See attached for complete results and comments, including the actual surveys.
Staff is seeking direction from the Council with respect to what tax measures, if any, that
Council wants to place on the April 2014 general municipal election. Council has until January
8, 2014 to adopt the necessary documents to place ballot measure on the April election.
However, staff thought it was prudent to place this matter before Council as soon as possible
given that staff does not know how long Council may wish to discuss and consider its options
and, depending on Council direction, staff needs sufficient time to prepare the necessary
documents for Council action. The potential tax increases are proposed to be general taxes
(meaning they will be deposited into the City's general fund and can be used for any lawful local
government purpose) and the proposed increases require approval by a majority of the electorate
pursuant to Article XIII C of the California Constitution. To place a general tax increase on the
general municipal election four of the five Council Members must pass the resolution(s)
necessary to place the proposed increase(s) on the ballot.
Utility Users Tax
The City currently imposes a 3% UUT on businesses for electricity, gas, water services and 2%
for communication services. As shown on Exhibit A, the City charges less UUT than the
surrounding jurisdictions. Staff estimates that for each 1% increase (in all UUT's combined) the
City will collect estimated additional annual revenues of $1,401,204.
If the Council were to impose a UUT on residents, for each 1% of tax imposed on residential
electricity, gas and water services the City would collect approximately $342,350 of additional
annual revenues.
Transient Occupancy Tax
The City currently imposes an 8% TOT on individuals occupying hotels or motels within the
City. Exhibit A reflects that the City charges less, and in some cases substantially less than the
surrounding jurisdictions. Staff estimates that for each 1% increase in TOT the City will collect
an additional $637,500 in annual revenues.
Business License Taxes
Elimination of Business Sales Tax Credit
The City currently provides businesses with a credit towards their annual business license tax in
an amount equal to the sales tax payments the City receives from businesses. If the City
eliminates this credit, it is estimated that the City's annual BLT revenues will increase annually
in the amount of $1,100,000.
Imposing a Parking Lot Tax
15
26
Imposition of a 10% citywide parking tax would provide up to $1,158,392 in additional business
license taxes depending on which of the following taxes were collect:
1. Airport parking (long -term parking) estimate revenue - $295,000;
2. Transient validation and valet parking estimated revenue - $346,404;
3. Monthly tenant parking estimated revenue - $516,900
Advisory Ballot Measure — ESUSD
The Council expressed some interest in potentially putting an advisory ballot measure on the
election for purposes of seeing if the voters would like to see some portion of the revenues from
any proposed tax increase provided to the ESUSD. The Council can place such a measure on the
ballot but it has no binding legal effect and will not require that the City provide any revenues
form any increase in tax revenues the School District. However, the Council and future Council
can consider the results of such an advisory measures as the Council adopts its annual budget.
This would require two separate ballot measures. The questions might look like this:
Measure A:
"SHALL THE ORDINANCE (ORDINANCE NO. 123) AUTHORIZING THE
IMPOSITION OF A PARKING TAX AT AN ANNUAL FLAT RATE OF $X
DOLLARS ($X) PER PARKING SPACE BE ADOPTED?"
Measure B:
SHALL THE ORDINANCE (ORDINANCE NO. 456) ADVISING THE CITY
OF EL SEGUNDO REGARDING THE EXPENDITURE OF NEW PARKING
TAX REVENUE BE ADOPTED?
Procedural Issues Re Preparation of Ballot Measures
What Specific Amendments/Increases Does Council Want to Place on the Ballot?
Staff needs Council direction regarding which taxes, if any, that four members of the Council
can agree on amending and /or increasing. It only takes three members of Council to place the
advisory measure on the ballot, but unless four Council Members can agree on the proposed
amendments /increases to the City's tax code, an advisory measure would be moot.
Does Council Want the Proposed Amendments/Increases combined into one ballot
measure or does it want separate ballot measures for each proposed
amendment /increase?
Council has the option of either combining all of the proposed amendments and /or increases into
one ballot measure (except an advisory ballot measure which must be a separate measure) or
placing separate ballot measure for each amendment and /or increase on the ballot. This is a
policy consideration for the Council. Council may wish to consider whether it wants all of the
measures tied together with the understanding if it passes or fails that all of the proposed
amendments pass or fail as opposed to having each amendment /increase voted on separately.
16
27
An additional consideration is that a ballot measure question can only contain 75 words. Thus,
depending on number of amendments /increases that the Council wants to include in the ballot
measure then it may become more difficult to specifically describe each amendment/increase
than it would be if all of the amendments /increases are placed on the ballot as separate measures.
For example, if the Council were to place all of the amendments /increases before the electorate
then the ballot question might take the form of one of the two options below:
"SHALL THE ORDINANCE (ORDINANCE NO. 123) ENTITLED "AN
INITIATIVE MEASURE AUTHORIZING A ONE PERCENT (1 %) INCREASE
TO THE UTILITY USER TAX, BUSINESS LICENSE TAX, AND
TRANSIENT OCCUPANCY TAX TO FUND GENERAL MUNICIPAL
SERVICES, INCLUDING, WITHOUT LIMITATION, POLICE PROTECTION
AND INVESTIGATIONS, SUPPRESSION OF GANG AND DRUG RELATED
CRIMES, REMOVAL OF GRAFFITI, RAPID RESPONSE TO
EMERGENCIES, SERVICES TO SENIOR CITIZENS, AND MAINTENANCE
AND REPAIR OF CITY STREETS AND LANDSCAPING" BE ADOPTED?"
[70 words]
"SHALL THE ORDINANCE ENTITLED "AN INITIATIVE MEASURE
AUTHORIZING A 1% INCREASE TO THE UTILITY USER TAX; A 2%
INCREASE TO THE BUSINESS LICENSE TAX; AUTHORIZING A 3%
TRANSIENT OCCUPANCY TAX; REPEALING THE BUSINESS
INCENTIVE TAX CREDIT; AND ADDING A NEW PARKING TAX TO
FUND GENERAL MUNICIPAL SERVICES, INCLUDING, WITHOUT
LIMITATION, POLICE PROTECTION AND INVESTIGATIONS, RAPID
RESPONSE TO EMERGENCIES, SERVICES TO SENIOR CITIZENS, AND
MAINTENANCE AND REPAIR OF CITY STREETS" BE ADOPTED?" (71
words)
Alternatively, if each is proposed separately then the measures would be virtually identical and
read as follows:
"SHALL THE ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE
CHAPTER 3 -7 TO INCREASE THE UTILITY USER TAXES BY 1% TO
FUND GENERAL MUNICIPAL SERVICES INCLUDING, WITHOUT
LIMITATION, POLICE PROTECTION AND CRIME SUPPRESSION
SERVICES, FIRE PREVENTION AND SUPPRESSION SERVICES, AND
PARK AND RECREATION FACILITIES AND SERVICES BE ADOPTED?"
"SHALL THE ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE
§ 3 -4 -3 TO INCREASE THE TRANSIENT OCCUPANCY TAXES BY 1% TO
FUND GENERAL MUNICIPAL SERVICES INCLUDING, WITHOUT
LIMITATION, POLICE PROTECTION AND CRIME SUPPRESSION
SERVICES, FIRE PREVENTION AND SUPPRESSION SERVICES, AND
PARK AND RECREATION FACILITIES AND SERVICES BE ADOPTED?"
17
28
"SHALL THE ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE
TO ELIMINATE THE BUSINES LICENSE SALES TAX CREDIT AND
ESTABLISH A PARKING TAX TO FUND GENERAL MUNICIPAL
SERVICES, INCLUDING, WITHOUT LIMITATION, POLICE PROTECTION
AND INVESTIGATIONS, SUPPRESSION OF GANG AND DRUG RELATED
CRIMES, REMOVAL OF GRAFFITI, AND RAPID RESPONSE TO
EMERGENCIES BE ADOPTED?"
Conclusion
Staff wanted to place this issue before Council well in advance of the cut -off date so that Council
would have adequate time to consider its options and staff would have adequate time to prepare
the necessary documents, if so directed by Council, to place ballot measures on the April general
municipal election.
18
29
ATTACHMENT A -
UUT & TOT COMPARISONS WITH NEARBY CITIES
GAS, ELECTRIC Et WATER
UTILITY USERS' TAX
m All Charge Resid3entiat UUT except for City of EL Segundo
10%
8%
6% -
4% —
0%
e p- "—' 045f t�
TRANSIENT OCCUPANCY TAX
14%
10%
i�
8% -
6%
4%
2% _ - -
0%
�o ``r <<a�`e� mar °i
Leo r�;cP c�z e. 0,
30
19
City of El Segundo ATTAC H Mj-= N T B
Q1 Are you an El Segundo Resident,
Employee or Owner of an El Segundo
Business?
Answered: 150 Shipped; 0
(Resident of k
El Segundo -
J _ . _-
Employee or
Owner or an
El Segundo..
Other
Answer Choices
0% 20%
Resident of El Segundo
Employee or Owner of an El Segundo Business
Other
Total Respendenfs:
400
Other (please specify)
1
; Local (Immediate) Resident
2
Workin El Segundo. Employee,
3
Involved
4
Have done busineeswith the City.
5
Non- resident���
6
Home -based business...
7_.� -_
Apartment Building Owner
40% 60% 80% 100%
$9°h 138
26.88% 43
.. __. _ _ .. �._ - • - 9.63% ...�" —.��. 9
Doti
11/7/2013 1:51 PM
11/7/2013 1:47 PM
11/7/2013 1:44 PM
10/29/2013 3:32 PM
I 10/29/2013 3:08 PM
10/28/2013 6:38 AM
1012412013 9:24 AM
1/17 20
31
Answer CWcos
0.5 yre
6-10 yre
11 -15 Ym
16+ yrs
10*1 OOpOrl Mm:145
City of El Segundo
Q2 How long have you boon a resident of
El Sogundo?
Answwo&.145 Skippa&.15
Od yra
t
6-10 m
1146 yrs
16� yr.
0% 20% 40% 80 %a 80% 100%
- -- -
Reop osss
-
11.03%
96
18.7094
20
- _ ---- - - -� -
11.7274
97
63.46%
92
2117
32
21
City of El Segundo
Q3 Are you a registered voter In El
Segundo?
Answered: 157 Skipped:3
0% 20% 40% 60% 80% 100%
._MswarChaiess Fiespansea
Yes�_��_____._._ 81.53'/. 128
NO 18.47% 29
TaF 16?
L`
3117 22
33
City of El Segundo
Q4 What Is y9ur gender?
Amwow*.I$f SUPPO&.*
Male
ftfnww
0% 20% 40% 60%
Answer Chotcow
mods
Femsio
59.38%
80% 100%
96
40.63% 66
4117 34 23
City of El Segundo
05 What age group we you in?
Answered: 158 Skipped; 2
1830
3140
41-N
3
510
0:1
0% 20% 40%
Aasw•r GhQlcf -- __
18330
31.40
494;0
81.80
8.9 +
Ts�3a! �espond�mr: 938 .
80% 80% 100%
5117 35 24
e,ee96 -- - 14
T y
20.25% 32
27.22% 43
43.04% 55
5117 35 24
PoNce
Services
Fla Services
Recrearon
and Parks
Services
L6my
Services
City of El Segundo
Q6 Are you satisfied with the level of
service provided In the following areas?
Answered: 156 3kipped:4
0 /17
36
25
CondMm of
fUeeri and
Sldeaslke
City of El Segundo
i
Condition
Public
Buildings
I
Overall City
Services
Police Services
Fin Services
Recreation and Peft Services
0% 20% 40% 60%
80% 100%
O Very 3stislied E Satlalled M No Opinion 0131mildled n Very Disiatidied
Very SatloMd
"A6%
60601110d
No Opfr*m .
t is #atl llyd
39.97%
1.29%
1.29%
103
48
2
2
00A9%
39.32%_
. ____ 2.99%
9.05%
103
47
4
1
91.97%
39.47%
4.09%
1.32%
79
80
10
2
7117
Wry Olesatisfied Toul ResporWents
0%
0 155
o%
0 155
o.ee%
1 152
37
Library Services
lCondItion of Sftets and
Of, 004*0
Overall City Services
City of El Segundo
44.37%
33.11%
17.8,8% 1
3.31%
27
18.04%
39.74%
9.27%
31.13%
29
40
14
47
10113%
47AQ%
2$A#%
11.044/o
28
is
17
33.U%
02.34% .}-
2 34%
3.25114
in
8117
1,32%
2
2A"
3
163
ovo
t�
184
0%
0
154
w
27
Reduce Vw
size of the
CHY ..
Furgwr
reduce
Employee...
Consider
Contraognp
for County...
City of El Segundo
Q7 Given the City's financial situation, do
you believe the City should:
Answered:156 Skfpped:4
:.I
Conelller
Conlrecone
for Cr0111*.« LM
9117
39
28
Conslder
Conaecttng
for Courdy...
Increase
'axes
City of El Segundo
0% 20% 40%
Reduce the Size of the City WorWorce
60% 80% 100%
Strongly Support 0 Support a Neither 0 Oppose ■ Strongly Oppose
Further reduce Employee Salaries and Beni
Consider Contracting for County Services fa
Consider Contracting for County Services to
Sheriff
Consider Contracting for County Services fo
Library
Increase Taxes
Strongly sYppad feMMr Oppose strongly
Support oppose
7atsi
Respondents
152
151
161
151
150
151
10117 29
40
19.53%
21.71%
25.00%
26.32%
11.79%
18
20.07%
33
39
24%
40
19.33%
24
14.00%
into
22.07%
31
34
36
29
21
Fire
11.26%
16.04%
6.01 %4
.31.13%
30.46%
17
28
13
10.60%
47
30.40%
46
_ ..y 42.30%
3.97%
12.56%
6
19
10
19.33%
40
_ 24%
64
y 21.33%
6.07%
20.67%
10
43
29
36
32
27.33%
41.33%
10.67%
9.33%
12%
41
e2
16
14
18
7atsi
Respondents
152
151
161
151
150
151
10117 29
40
City of El Segundo
QS Based on the information provided
what is your opinion on the following tax
measures:
Increase In
WTplsbl
Vlsltsr 7hx)
i
Incess
duelnses nl us; M
ItItlIIN Tox1
Implements
Now
ResldenVe...
Immh,ssr
6wNnsss
Memo U...
Answered. 155 SMpped:5
■
11117
41
30
Implement a
Parking Tax
City of El Segundo
0% 20% 40% 60% 60% 100%
Strongly Support a Support 0 Neither 0 Oppose ■ Strongly Oppose
Inamaep In TOT (Hots] VIMt0rTax)
Increaw Budness UUT (UNlity Tax)
Implement a Now Residential UUT (Utility Tax)
Eliminate Business License Tax Credit
Implement a Perkng Tax
„ Strongly4lupport
Support
Neither s Oppose
Strongly [appose
Total Rfsponda"4 1
24.22%
04.80%
6.49% 0.49%
9.26%
84
45
10 10
5
154
41.00%
93.77%
11.92% 10.60%
2.66%
62
61
14 18
4
151
36.68%
26,95 %
'18.79% 13.42%
4.92%
54
44
24 21
9
162
34% -
22% 10.67%
4%
— 50.07%
51
46
39 ! 16
6
152
36.24%
37.5875
14.41% 9.40%
6.04%
54-
_ _ 56 ..
17 14
�g
12117 31
42
City of E Segundo
Q9 Do you have any su9gestions for how
the City can raise revenues?
Answ$ red- 58 Skipped: 102
0
Responses
Data
1
Higher taxes on Chevron. Bring new busi noes to El Segundo (e.g. Smoky Hollow revitalization).
11/13/2013 9:02 AM
2
Upgrade downtown businesses, buildings and parking to make it more accomodating to all. Plus make
11/13/2013 8:52 AM
I
sure Chevron ispaying their share ongoing,
3
-
Include the School District
11 /13/2013 8:27 AM
4
Hold evenlsat El Segundo beach, charge entry and charge parking at event.
111712013 2:06 PM
5
Bring Park Rec feesto compare with Manhattan Beach and other cities.
11/7/2013 2:00 PM
6
Could we re- structure fire dept. –keep local, but more joint response agreements? or combo
11/7/2013 1:57 PM
employee /volunteer? Charge residents trash fee or have them pay trash collection companies directly.
7
You have a tough job. Thanks!
11/7/2013 1:54 PM
8 s
Raise other fees –> planchecWpermils –> Rec /Park fees –> Sponsoring events by corporations.
11/7/2013 1:52 PM
9
Sports Venue - Maple / Nash - Douglas Area
11/7/2013 1:51 PM
10
Increase income taxes.
11/7/2013 1:46 PM
11
Pay fortrash. Have 401kwith .25 City match same asprivate business.
11/712013 1:44 PM
r,
12
One possibility is IF we are to implement a new residential UUT that it happenswhen a property issold
11/6/2013 3:25 PM
and the new buyer would be subject to a fixed UUT from thereon forward. So currently, everyone does
not have to pay new tax. Only new residents are subject to it when they buy property in El Segundo.
13
–> Increase business growth (retail) on Main Street and Plaza El Segundo —Recruit new businessesto
10129/2013 4:18 PM
have open houses, advertise, co- sponsorevents, engage in the community. [Increase UUT: 1% R 3 %]
14
1 think schools need to cover the cost of staffing provided by City. Increase fees for filming in El
10/29/2013 3:48 PM
Segundo. [Thisperson wrote under #8 –> Eliminate Business License Tax Credit, "Partial "]
15
Tax plunge, lax tennis courts, handball courts, per hour.
10/29/2013 3:43 PM
16
Charge for trash - residential.
10/29/2013 3:41 PM
17
Make available secondary street signs such as "Mike Gordon Parkway" to businesses ie: El Segundo
10/29/2013 3:35 PM
Boulevard "Chevron Parlmay" etc.
18
Rent golf course. Sell the sand on the beach! It replaces itself.
10/29/2013 3:34 PM
19
Sell property (lease ?)
10/29/2013 3:33 PM
20
Residents pay for residential trash pick -up. TOT - Raise 2 %; Trash pick-up paid by residents; Utility - 2% 1
10/29/2013 3:32 PM
acrosslhe board.
21
Vote fora parcel tax on every piece of property in El Segundo - commercial and private.
!!!
10/29/2013 3:19 PM
22 j
I'm all for solving the problems as much as possible via taxes on visitors, !e: TOT a parking taxes. Also,
10129/2013 3:16 PM
are proposed economic development improvements accounted for?
23
Residential Responsibilities... Raise in Taxes...–> Metered parking on Main, Richmond, a Grand.
4 –
10/29/2013 3:13 PM
24
Aggressively pursue expanding the lax base visa attracting more businesses( "Silicon Beach" in
10/28/2013 8:38 AM
Smokey Hollow) - Variety, variety, variety. - Encourage reeidenisto upgrade their houses.
_
–
25
Aggressively develop new buslnessto move to the City. I
10/28/2013 8,34 AM
26
See above and charge for trash collection.
10/28/2013 8;30 AM
27
Try to attract more buslnessesand diversify buanesseseswell asincrease laxesby a small amount over
10128/2013 6:28 AM
many payers, residential and business.
28
Condderlaxeslisted above.
10128/2013 8:26 AM
32
13/17 43
City of El Segundo
29
Enforce business license requiremeniswithin the City, Have employees withing certain groups pay
10128/2013 8:24 AM
more for free benefits they receive. Quit waiving fee's for all the non -profit groups in the City. Charge
residents for garbage collection, but exclude apartment and condo units
30
Need major P.R. campaign effort to inform public on need to support utility taxes.
10128/2013 8:22 AM
31
^ Bring in new buanessl Lower busin ego taxes and restrictions on businesses.
a
10/24/2013 4:03 PM
32
Establish some kind of parking / mooring fee for all ships that offload their crude 1/2 mile off the City
10/24/2013 2:27 PM
coast,Require residentsto pay trash.
33
Residents need to pay fair share of City services expense.
I_
10/24/2013 2:25 PM
34
Us residents need to pay more (trash, uut, other taxes). Employees have been drastically cut, more cuts
10/24/2013 2:24 PM
will just reduce further services.
35
Increase taxes: [TOT, ULT, Residential UUT, Parking Tax & Eliminate Business License Tax Credit].
10/24/2013 2:22 PM
Citizens pay for their trash collection.
36
i
1. Residential Trash Tax 2. Hotel Occupancy Tax
10/24/2013 2:19 PM
37
I Increase Chevron Tax to be equal to surrounding Oil Refineries.
10/24/2013 2:15 PM
38
I Have residents pay for trash pick -up.
10/24/2013 2:14 PM
39
"Increase Hotel tax 'More retail by Plaza El Segundo? " Outsource golf course "Increase parking tickets !
10/24/2013 2:10 PM
fines. "Put parking metersin on Main St. *Increase UUT, lease parking spacesforfee on Sepulveda
areas. ' Use City parking garage by 99cent store for leased LAX pig. "Use Chevron taxes "Charge for all
services used (PD & FD) if person broke the taw.
40
Residents need to pay more fortheir services.
10/24/2013 1:48 PM
41
! Manage the money correctly. The taxes are not competitive with other South Bay Cities. They don't
10/24/2013 1:45 PM
seem to be having this problem. Bad business decisions on your part. Why would you lower your taxes
when everything naturally increases?
42
Reduce - expenditures -why raise taxeswhen City hasprobably been mismanaged overthe years.
10/24/2013 1:42 PM
43
Outsource
10/24/2013 1:40 PM
44
TOT is way too cheap! Should be at least 12 %. Business tax + Residential utility tax should be
10/24/2013 9:56 AM
increased. Red -card fees, locket reduced health care costsforthe City employees.
45
TAKE THE UUT EXCEPTION FOR ALL APARTMENT UNITS 4 AND DOWN 7010 UNITS NOT PAYING.
10/24/2013 9:47 AM
REVISIT TRASH COLLECTION FEES IF IT RAISES INCOME FOR CITY.
46
Askpeople with low long- 7imtstaxesto pay highertax.(ordemand ?). (THAT WOULD BE ME, BY THE
10/24/2013 9:24 AM
WAY[)
47
Unfortunately across the board tax increases with prudent cuts.
1012412013 9:19 AM
48
Contact Byran and Eva Sweeney for more ideasof economic and CREATIVE DEVELOPMENT asthey
10/23/2013 3:02 PM
did with the ES Museum of Art & their fire station development.
49
'-increase Parts & Rec fees I
10/23/2013 2:44 PM
50
Tax Retirees I
10/23/2013 2:32 PM
51
Mats' filming —> film industry more attractive - filming - studios.
10/23/2013 7:40 AM
52
'All of the above. "Sell excess equipment. 'Ensure Balariesare equivalent to other cities. 'Treat
10/23/2013 7:29 AM
retirement benefitsto retireeslike businesees(eliminate via payout),
53
{ charge forlrash collection attract more businesses encourage shopping local
10/21/2013 3:44 PM
54
Don't touch employees anymore. Increase taxes 1
10/21/2013 3:41 PM
55
ALL Residents, angle, multi, etc pay fortrack pick up.
10/21/2013 3:39 PM
56
Improve development of lands. Increase some form of property taxes
1012112013 3:37 PM
57
Increase user fees at ParWRec. {,'
10/21/2013 3,32 PM
58
1 Add a 114 or 112 cent/dollar city sales tax. I
10/2112013 2;58 f M
14/17 33
44
City of El Segundo
Q1 D Do you have any suggestions for how
the City can reduce expenses?
Answered. 54 Skipped; 108
N
Responses
Date
1
Cut management for Fire /Police. We don't need two Police Captains, etc...
1 11/13/2013 6:38 AM
2
Limit or reduce police and fire department salaries, benefits, pension. Also, reduce top management
11/13/2013 8:35 AM
positions.
3
Street sweep: eliminate or reduce frequency. Do we have to have two lifeguardswith pool when high
1117/2013 2:00 PM
school lsusing it?
4
Reduce pensions.
11/7/2013 1:54 PM
5
Lower administrative costs(salaries (benefits). Reduce size of Police force.
11/7/2013 1:51 PM
6
dial -a -ride?
11/7/2013 1:40 PM
7
Pay to pickup trash. Negotiate payment of retirement benefits.
11/7/2013 1:46 PM
8
Simplify systems within City. Use technology.
1117/2013 1:44 PM
9
Instead of laying off people, they can change to part-time employees.
10/29/2013 4:56 PM
10
—> Can a group create a fund raising arm for major projects such as Uurho Saar17 Annual Library fees
10129/2013 4:18 PM
would be OK with mel (Family)
11
Sell of or lease land or parking lot on northeast comer of Main and Grand. Thai isa ton of space just
10/29/2013 4:06 PM
used for Firefighters to park Charge higher fees for non - residents to use City facilities (Parka & Rec).
12
Where 1 worked they draw a line in the sand & said —all new hireswould not receive retiree medical
10129/2013 3:48 PM
benefits.
13
Retire the exorbitant selades$250k+ of bosses.
10/29/2013 3:43 PM
14
}
No pensionsfor City employees.
10/29/2013 3:39 PM
15 _
Reduce selariesand pensions,
10/29/2013 3:33 PM
16
Cut out some special events - Parka & Rec. Reduce expenses for trips, conferences, and seminars
10/29/2013 3:32 PM
including Police and Fire.
17
Forma blue ribbon committee to lookat possible reducing $ busses —dog park —trash fee. etc. etc.
10/29/2013 3:29 PM
I. Lessto schol.
18
I'm glad we're a full service City. I appreciate the cuts that have been made. I thinklhat cost control
10/29/2013 3:16 PM
needsto remain in focus (limiting raises & benefits) within maintaining current staffing levels.
i
19
Re- positlon Fire & Police Staffing. —> Beach Cities Shared Services.
10/29/2013 3:13 PM
20
l Automate as many servlces as possible. Install solar (PV & Thermal) on all City buildings. Add a
10/28/2013 8:38 AM
I} windmill next to the water tower or above the power station / Hyperion ridge.
21
I Allow more position vacated not to be filled with full time employees. Looklo outaource non - resident
10/2812013 6:34 AM
facing departments.
22
Include Chevron in the elimination of the business license tax credit. Don't commit to supporting a
10/28/2013 6:30 AM
pool for W sebum USD.
23 Eliminate life time benefitsfor everyone,
24 Does the city need a fleet of busesfor shuttle services. Why purchase all the fire equipment vehicles
(ladderiruck, search and rescue trailer, etc) when all they do !sail, orgo to garage for repalnr,
25 Close down the ewlmming pool. Cut the number of City workers,
26 1. Lookclosely at how to contain costs in safety area. In new norm, how do we cut the lot so to speak
Primarily since 11 appears to be moat expensive Item in E.S. 2. How an Independent entity evaluate the
City for Ideas on how to run City more efficiently.
10/28/2013 6:26 AM
10/28/2013 8;24 AM
i 10/28/2013 6:18 AM
10/28%2013 8:13 AM
15/17 34
45
City of El Segundo
27
} Motorcycle -Gone 1 Fire Station
1
10/28/2013 8:11 AM
28
Vote for a Republican conservative in all areasof Federal, State, County, and City govemmentl!t
10/24/2013 4:03 PM
29
Library and fire department.
10/24/2013 2:27 PM
30
Reduce pensions
10/24/2013 2:27 PM
31
Go county fire and county library.
10/24/2013 2:25 PM
32
I Eliminate fire dept. L.A. County can do just as good of a job,
10/24/2013 2:24 PM
33
'Regionalize city services" Eliminate medical benefilsto City Council Members *Eliminate special
10/24/2013 2:22 PM
events paid for by City - ie: July 41h, that generate unnecessary costs, especially overtime cost.
34
1. Tale away lifetime medical for City Council. 2. Start regionalizing more City servicesthmughout
10/24/2013 2:19 PM
Southbay. (ie: animal control)
35
"Charge residents trash fees *Raise tax by 1 % "Implement parking tax
4
10124/2013 2:15 PM
36
Eliminate lifetime medical benefits for City Council. _. =a^
-
10124/2013 2:14 PM
37
Oulsource City Services ie: Maintenance, Street Division, Vehicle Maintenance
10/24/2013 2:12 PM
38
Drop the library and bring it backwhen you can afford it.
10/24/2013 2:07 PM
39
1 will need more Information, but I believe -- better management could reduce cost without the need to
10/24/2013 1:42 PM
raise taxes.
40
DO NOT TAX BUSINESSES OUT OF BUSINESS! FUND RAISERS71 RAISE RENT ON SENIOR
10/24/2013 9:24 AM
HOUSING. OPEN EXPENSIVE SENIOR HOUSING AS REVENUE, FLAT E.S. TAX ON ALL
RESIDENTIAL & ANY HOUSING.
41
Reduce Pensions
10/24/2013 9:18 AM
42
Number of employees and compensation both seem high.
10/2312013 3:11 PM
43
Pensionsforthe police /fire & Top ES Mgmt istoo high. Under#7, Reduce the Size of the City
10/23/2013 3:09 PM
Workforce, this person wrote, "Police & Fire ". Under #7 —> Furtherreduce Employee Salaries and
Benefits, this person wrote, "Police, Fire, Upper Mgmt ".
'-
44
I
Reconsider County Fire Research County Library
10123/2013 2:57 PM
45
EMPLOYEE SALARIES AND BENEFITS NEED TO BE REDUCED TO PAY LEVEL OF PRIVATE
10/23/2013 2:56 PM
INDUSTRY. EL SEGUNDO DOES NOT HAVE A REVENUE PROBLEM. IT HAS A SPENDING
PROBLEM.
46
Further reduce Employee Salaries and Benefits, this person wrote: "Especially FD & PD ". That isihe
10/23/2013 2:35 PM
Clty's Job to figure out, but the way to go.
47
Reduce retiree health expenses think Obamacare forthem reduce pensions-
10/23/2013 2:32 PM
48
Acroselhe board cuts to balance expenses to revenue.
10/23/2013 7:29 AM
49
Reconsider out sourcing of fire services
10/21/2013 3:47 PM
50
? eliminate retirement benefits for those with lewthan 30 yearsaervice
10/21/2013 3:45 PM
51
Reduce retirement benefits. Reduce size of fire department.
10121/2013 3:37 PM
52
Comments are spot on. The unions have too much sway - limit union contributionslo campaigns,
1012112013 3:36 PM
53
t}
' Severely cut or eliminate all pension&
10/2112013 3:32 PM
54
Reduce the budget to Recreation and Parisi- used by a limited number of residents,
j 10/21/2013 3:02 PM
16/17 35
46
City of El Segundo
011 Other Comment
Answered: 12 Skipped: 148
;y
Responses
Date
1
[Dissatisfied with condition of City swimming] pool[s]
10129/2013 4:18 PM
2
Looked like revenue is highest it has been, & projected to Increase. Now there is a deficit. How do we
10/29/2013 3:49 PM
control our expense?
3
Increase TOT by only 1 %.
10/29/2013 3:41 PM
–4�
Strongly support Increase in TOT by 2% and strongly support implementation of new residential UUT^
10129/2013 3:32 PM
by 2 %.
S
Condition of Streets& Sidewalks "could be improved"
I 10/28/2013 8:38 AM
$
Wish Library wasopen Fridaysi Need to know more about (contracting for County servicesfor
10/28/2013 8:28 AM
Fire /Sheriff) to mane an informed decision.
^ 7
Why is the Library going to reopen on Frldaysfor 9 months only? Then layoff 3 new hires, 1 full time
10/28/2013 8:21 AM
emp, part time. It seems like reopening on Fridayslswaste of money and personnel.
8
[Staff] have already paid a lot in the last round. Police Services are more Important than Fire.
10/24/2013 2:24 PM
9
Don't like the City closed on Fridays
10/24/2013 2:10 PM
10
NONE - FEDERAL, STATE, COUNTY, CITY, PROPERTY TAX, SALES, EXCISE TAXES AND ALL
10/23/2013 2:56 PM
ADDED FEES TAKE 50% OF MY INCOME, ENOUGH IS ENOUGH. Under #16, "Are you satisfied..." –>
Condition of Streets& Sidewalk thispermn wrote, "DEPENDS ON VARIOUS STREETS ".
11
Note on #6 "Are you saatlsfled..." –> Library Services, this person wrote, "w/ Fri hours".
1012312013 2:53 PM
12
Under #6 –> Rec & Parks+ Library Services, this permn wrote, "Schedule of classes & facilities is
10/23/2013 2:46 PM
limited. Under #7 — Consider Contracting for County Servicesfor Library, this person wrote, "unless it
meansclosing school libraries.
17/11 36
47
Raeidenl of
El 8egurWo
Employee or
Ow nor of an
El owgunda...
City of El Segundo A"TMAC: H, M 0 Wr !C;
Q1 Are you an EI Segundo Resident,
Employee or Owner of an El Segundo
Business?
Answered; 128 Skipped: 0
0% 20% 40% 60% 80% 100%
Resident of El Segundo 99.22% 127
Employee or Owner of en El Segundo Bueineee 20.31% 26
Ocher 7.469E 2
_ -1 •...__.�.�. Home -based buelnem . _ ---- - - - ~ -- - 10128/2013 8:39 AM
2 Apartment Building Owner - 10124124139 :24 AM
37
1/17 48
Anawar Cholm
0fi yra
0 -10 yra
11 -15 yre
18+ yrs
'foul Rsaporrdenta :128
City of El Segundo
Q2 How long have you been a resident of
EI Segundo?
Answered: 128 Skipped:0
04 yrs r J�
010 yn
11 45 yra
10� yn
0% 20% 40% 00%
80% 100%
iisspcmaaa _ -
-
7.03%
9
12.50%
18
12.00%
16
07.07%
-
87
38
2117 49
Yea
Ro
Answer Choker
Yes
NO
City of El Segundo
Q3 Are you a registered voter In El
Segundo?
Amwwed:120 Sk4"&' 0
0% 20%
40% 00%
lieipcnfasr
100%
00% 100%
128
0
128
39
8/17 50
war,law ►_
Male
Female
76w1
City of El Segundo
04 What is your gender?
Mawered:126 SMpped:0
80% 100%
87.91% 74
42.19% - 64
40
4/17 51
City of E1 Segundo
Q5 What age group are you in?
Answered: 127 Sk"d:I
160
3140
41460
51.60
61♦
a °lo 20% 40%
60% 00% 100%
Answer .Chace.. -._� _ R'■pe0ss.
1830--------•-- - --- -___ -� 0'/. 0
31-10 7.97% 10
4130 16.9094 24 .
5130 26.98% 33
61 * 47.24'X. 80
Taut itespanderm 127
41
5117 52
PON
Servic:
Firellervicas
Rscnation
and Parks
Services
Library
semkos
City of El Segundo
Q6 Are you satisfied with the level of
service provided in the following areas?
Answered: 126 Skipped: 2
— — -- -,w,
14 A
ri
0/17
53
42
Cmfton or
SVeeb and
Sidewalks
Condltlon of
Public
Buildings
Overall City
Services
City of El Segundo
0% 20% 40% 60%
60% 100%
n Very Setidiod M Satisfied ®No Opinion M Diststiviied E Very Dimtilied
Vrry $stlsfHd
Police Services 1 01.09%
77
Fire Services
6t
Recreation and Paris Services 90.41%
62
$$0111sd
No OPlnion p 04e240M
—1.00%
I Very Olssratfsfled j
TOW ftsporWorft -
-- 30.20%
1.00% �
0%
44
2 j 2
0
125
32%
2.40% e.ao%
OK
40
3 1
0
125
4.66% — - - 1.63%
0.61%
I
I - --
42.26%
52
6 2
1
123
7/17
54
43
Library Services
cofftilion of "Od"i
CondOle" Qt POft I
Overall City Servir-em
0 1 tty of Fj 809WOO
8/17
55
44
46.90%
-I- —G. 3-9 %-
38.52%
47
3-8-12 %--
11.49%
14
3,28%
4
0.62%
1
-------2.46%
122
20
47
49.60%
'42
20.80%
42
3
124
10.80%
12.80%
0%
21
62
20
1@
0
126
28-80%
0%
2A09.
0.80%
0%
30
off
8
1
0
126
8/17
55
44
Reduce the
sire of #w
city..
Further
reduce
Employee...
Consider
Contractlng
for Count...
Consider
Contracov
for Count...
City of El Segundo
Q7 Given the City's financial situation, do
you believe the City should:
Anawered:124 Skipped:4
i
8/17
56
45
City of El Segundo
k
Consider
Cw*acvm
for County...
Increase
Taxes
■
it
0% 20% 40% e0% 80% 100%
® Strongly Support M Support O Neither M Oppose E Strongly Oppose
10/17 57
122 `
120
122
120
120
119
46
Strongly
Support
NeWor
O&ds*
Strongly To "I
Support
~27.05%
Oppose Res "pOndenb
Reduce the Size of the City WorWorce
11.48%
22.95%
24.59%
13.93% I
14
28
30
33
17
Further reduce Employee Salaries and Benefits
22.50%
23.33%
24.17%
20.83%
��•
9.17%
27 i
28 i
29
25 1
11
Consider Contracting for County Services for Fire
10.00%
18.03% i
8.20%
31.97%
31.15%
13
22
10
39
38
Consider Contracting for County Services for
3.337E
12.50%
9.17%
33.337E
41.677E
Sheriff
4
15
11
40
50
Consi der Contracting forCountyServicesfor
5.83%
27.50%
17.507E
25.837E
23.33%
Library
7
33
21
31
28
!
Increase Taxes
26.05%
44.547E viBAWJt,
13A5%
31
53
10
9
16
10/17 57
122 `
120
122
120
120
119
46
Increase In
Vesper Tax)
Increase
Business UUT
MIRY Tax)
Implement a
now
Resldende...
ENn*W is
Business
Wanes Tit...
City of El Segundo
Q8 Based on the information provided
what is your opinion on the following tax
measures:
Answered. 113 Skipped; 5
11/17
RM
47
Implement a
Parking Tax
Increase in TOT (Hotel VisitorTax)
Increase BusInessUUT (UtililyTax)
City of El Segundo
0% 20% 40% 60% 80% 100%
Strongly Support M Support n Neither M Oppose W Strongly Oppose
Implement a New Residential UUT (Utility Tax)
Eliminate Business License Tax Credit
Implement a Parldng Tax
Strongly Support
-- • --
Subpart i tlkithar
- -- - -•— - -- -
Oppose
-- - --
6 Strongly Opiaose Total RespQn"Its
,. _ __ ___ -
--
58.10%
27.84% 7.32%
5.88%
3.25%
69
34 9
7
4 123
_ 1.07%
41.87%
33.33'/ 13.33 %�
10%
50
40 16
12
2
8.81%
120
~� 33.06 %4
28.93%
18.18%
13.22%
40
35
22
18
8
121
33.08%
30.58%
22.31%
10.74%
4.13%
40
37
27
13
5
5.04%
122
35.29 %i
38.06%
10.92%
10.08%
42
46
13
12
6
119
49
12/17 59
City of El Segundo
Q9 Do you have any suggestions for how
the City can raise revenues?
Answered: 46 Skipped: 82
its I ReI$powee
1 Higher taxes on Chevron. Bring new business to El Segundo (e,g. Smoky Hollow revitalization).
2 Upgrade downtown businesses, buil clings and parking to make It more accomodating to all. Plus make
sire Chevron is paying their share ongoing,
3
4
5
8
7
8
9
10
11
12
13
14
15
16
17
Include the School District
Hold eventsat El Segundo beach, charge entry and charge parking at event.
Bring Park & Rec feesto compare with Manhattan Beach and other cities.
Could we re- structure fire dept. —keep local, but more joint response agreements? orcombo
employee /volunteer? Charge residents trash fee or have them pay trash collection companies directly.
You have a tough job. Thanks!
Raise other fees plancheck/permits —> Rec /Parkfees —> Sponsoring events by corporations.
Increase income taxes,
onto
11/13/2013 9:02 AM
11/13/2013 8:52 AM
11/13/2013 8:27 AM
11/7/2013 2:06 PM
11/7/2013 2:00 PM�
11/7/2013 1:57 PM
` 11/7/2013 1:54 PM
11/7/2013 1:52 PM
11/7/2013 1:46 PM
One possibility is IF we are to implement a new residential UUT that it happenswhen a property issold
11/612013 3:25 PM
and the new buyerwould be subject to a fixed UUT from thereon forward. So currently, everyone does
not have to pay new tax. Only new residents are subject to it when they buy property in El Segundo.
—> Increase businesegrowth (retail) on Main Street and Plaza El Segundo —> Recruit new businessesto
10/29/2013 4:18 PM
have open houses, advertise, co- sponsor events, engage In the community. [Increase UUT: 1% & 3 %]
I think schools need to coverthe cost of staffing provided by City. Increase feesforfilming in El
10/29/2013 3:48 PM
Segundo. [Thisperson wrcte under #8 —> Eliminate Business License Tax Credit, "Partial "]
Tax plunge, tax tennis courts, handball courts, per hour,
10/29/2013 3:43 PM
Rent golf course. Sell the sand on the beach! It replaces itself.
10129/2013 3:34 PM
Sell property (lease ?)
10/29/2013 3:33 PM
Vole for a parcel tax on every piece of property in El Segundo - commercial and private,
10/29/2013 3:19 PM
I'm all for solving the problems as much as possible via taxes on visitors, ie: TOT & parking taxes. Also,
10/29/2013 3:16 PM
are proposed economic development improvements accounted for?
18 Residential Responsibilities... Raise in Taxes... —> Metered parting on Main, Richmond, & Grand. 10/2912013 3:13 PM
19 Aggressively pursue expanding the tax base visa attracting more businesses ( "Silicon Beach" in 10/28/2013 8:38 AM
Smokey Hollow) - Variety, variely, variety. - Encourage residents to upgrade their houses.
20 Aggressively develop new business to move to the City. 10/28/2013 8:34 AM
21 See above and charge for trash collection. 10/28/2013 8:30 AM
22 Try to attract more businesses and diversify businesses aswell as increase taxes by a small amount over 10/28/2013 8:28 AM
many payers, residential and business.
23 Consider taxes listed above. 10/28/2013 8:26 AM
24 _ Enforce business license requirements within the City. Have employees with!ng certain groups pay 10/28/2013 8:24 AM
more for free beneflis they receive. Quit waiving fee'sfor all the non -profit groups in the City. Charge
residentsfor garbage collection, but exclude apartment and condo units,
25 —Need major P.R. campaign effort to inform public on need to support utility taxes. 10128/2013 8:22 AM
26 — I Bring in new businesd Lower business taxes and restrictions on businesses. 10/24/2013 4:03 PM
27 Us residents need to pay more (trash, uut, other taxes). Employees have been drastically cut, more cuts 10124/2013 2:24 PM
V411 just reduce further services,
28 1. Residentlal Trash Tax 2, Hotel Occupancy Tax 10/24/2013 2:19 PM
13/17 49
60
29
30
31
32
33
34
30
37
38
3'9
40
41
42
43
44
45
46
City of El Segundo
"Increase Hotel tax "Mona retail by Plaza El Segundo ?" Outsource golf course *Increase parking tickets 10124/2013 2:10 PM
e sse ul ment "Ensure so] adesare equivalent to other cities. *Treat 1012312013 7:29 AM
Ail t b
retirement benefilsto retirees like businesses (eliminate via payout).
charge for trash collection attract more businesses encourage shopping local
Don't touch employees anymore. Increase taxes
ALL Reddent% single, multi, etc pay for track pickup.
Improve development of lands. Increase some form of property taxes,
Increase user fees at ParkstRec.
Add a 1/4 or 1/2 cent/dollar city sales tax.
1.4117
1012112013 3:44 PM
._
10121/2013 3:41 PM
10121/2013 3:39 PM
_..� ._ 1012112013 337 PM
10/2112013 3:32 PM _
1 0121 /2 01 3 2:58 PM
61
50
fines. "Put parking meter In on Main St. *Increase UUT, lease parking spacesfor fee on Sepulveda
areas.' Use City parking garage by 99eent More for leased LAX pig. `Use Chevron toxes'Charge forall
servicesused (PD A FD) If person broke the low,
Reduce -expenditures -why ralse taxes when City has probably been mismanaged over the years, 1
1 01241201 3 1:42 PM
❑ulsvurce 1
10/24/2013 1:40 PM
TOT Isway too cheapl'Should beat least 12%v. Susinesstax + Residential utility tax should be j
j 1 0124/201 3 9:56 AM
Increased. Red -card Tess, lookat reduced health care costsforthe City employees.
TAKE THE UUT EXCEPTION FOR ALL APARTMENT UNITS 4 AND DOWN 7010 UNITS NOT PAYING. 1
10/24/2013 9:47 AM
REVISIT TRASH COLLECTION FEES IF IT RAISES INCOME FOR CITY.
Ask people with low long- 71mtstaxes to pay higher tax.(or demand ?).,(THAT WOULD BE ME, BY THE 1
111124/21111:24 AM
WAYI)
Unfortunately scromthe board tax Increases with prudent cuts. 1
10 12412013 9:18 AM
Contact Byron and Eva Sweeney for more ideas of economic and CREATIVE DEVELOPMENT asthey 1
1012312013 3:02 PM
did with the ES Museum of Art A their fire station development.
• increase Parks & Rec fees 1
1012312013 2:44 PM
Tax Rellrees I
II 10/23/2013 2:32 PM
Make filming —? film industry more attractive - filming - studios 1
10/23/2013 7.40 AM
{, M
f h "S II xc e
retirement benefilsto retirees like businesses (eliminate via payout).
charge for trash collection attract more businesses encourage shopping local
Don't touch employees anymore. Increase taxes
ALL Reddent% single, multi, etc pay for track pickup.
Improve development of lands. Increase some form of property taxes,
Increase user fees at ParkstRec.
Add a 1/4 or 1/2 cent/dollar city sales tax.
1.4117
1012112013 3:44 PM
._
10121/2013 3:41 PM
10121/2013 3:39 PM
_..� ._ 1012112013 337 PM
10/2112013 3:32 PM _
1 0121 /2 01 3 2:58 PM
61
50
City of El Segundo
Q10 Do you have any suggestions for how
the City can reduce expenses?
Answered:43 51iipped:85
tie i liesporaes
1 _ Cut management for Fire /Police. We don't need two Police Captains, etc...
Dafe
11 /13/2013 8:38 AM
2
Limit or reduce police and fire department salaries, benefits, pension. Also, reduce top management
11/13/2013 8:35 AM
positions.
3
Street sweep: eliminate or reduce frequency. Do we have to have two lifeguardswith pool when high
11/7/2013 2:00 PM
school is using it?
4
Reduce pensions.
11/7/2013 1:54 PM
5
dial -a -ride?
11/7/2013 1:48 PM
6
Pay to pick up trash. Negotiate payment of retirement benefits.
11/712013 1:46 PM
7
Instead of laying off people, they can change to part-time employees.
10/29/2013 4:56 PM
8"
—> Can a group create a fund raising arm for major projects such as Uurho Saari? Annual Library fees
10129/2013 4:18 PM
would be OK with me! (Family)
9
Sell of or lease land or parting lot on northeast comer of Main and Grand. Thai isa ton of space just
10/29/2013 4:06 PM
used for Firefightersto parkCharge higherfeesfornon- residenlsto use City facilities (Parks & Rec).
10
1 Where I worked they draw a line in the sand & said — all new hires would not receive retiree medical
10/29/2013 3:48 PM
benefits.
11
Retire the exorbitant salaries$250k+ of bosses.
10/29/2013 3:43 PM
12
i No pensions for City employees.
10/29/2013 3:39 PM
13
Reduce salariesand pensions.
10/29/2013 3:33 PM
14
Form a blue ribbon committee to lookal possible reducing $ busses —dog park — trash fee. etc. etc.
10/29/2013 3:29 PM
Less to schols.
15
!
I'm glad we're a full service City. I appreciate the cuts that have been made. I thinkthat cost control
10/29/2013 3:16 PM
needs to remain in focus (limiting raises& benefits) within maintaining current staffing levels.
16
Re- position Fire & Police Staffing. —> Beach Cities Shared Services.
10/29/2013 3:13 PM
17
Automate as many services as possible. Install solar (PV & Thermal) on all City buildings. Add a
10/28/2013 8:36 AM
windmill next to the water lower or above the power station / Hyperion ridge,
1
18
Allow more position vacated not to be filled with full time employees. Lookto outsource non - resident
10/28/2013 8:34 AM
facing departments,
19
Include Chevron in the elimination of the business license tax credit. Don't commit to supporting a
10/28/2013 8:30 AM
pool for Wisebum USD.
20
Eliminate life time benefits for everyone.
10128/2013 6:26 AM
21
Doesthe city need a fleet of busesforshuttle services, Why purchase all the fire equipment vehicles
10/28/2013 6:24 AM
(ladder truck, search and rescue trailer, etc) when all they do is sit, or go to garage for repairs.
22
Close down the swimming pool. Cut the number of City workers.
10128/2013 8:18 AM
23
1, Look closely at how to contain costs in safety area. In new norm, how do we cut the fat so to speak
10/28/2013 8:13 AM
Primarily since it appears to be most expensive item in E.5, 2. How an independent entity evaluate the
City for ideas on how to run City more efficiently.
24 ` _
I Motorcycle - Gone 1 Fire Station
10/26/2013 8:11 AM
25
Vote fora Republican conservative In all areas of Federal, State, County, and Clty govemmentlll
10/24/2013 4:03 PM
26
-
Reduce penslon&
10124/2013 2:27 PM
27
I Eliminate fire dept. LA. County can do just as good of a job.
10/24/2013 2:24 PM
15/17
62
51
City of El Segundo
28 1. Tale away lifetime medical for City Council. 2. Start regionalizing more City services throughout
Southboy, pe: animal control)
29 Outsource City Services le: Maintenance, StreetDivleion, Vehicle Maintenance
30 1 will need more information, but I believe - better management could reduce coat without the need to
raise taxes
10/2412013 2:19 PM
1012412013 2:12 PM
10124/20131:42 PM f
31 DO NOT TAX BUSINESSES OUT OF BUSINESSI FUND RAISERS ?i RAISE RENT ON SENIOR 10124/2013 0:24 AM
HOUSING. OPEN EXPENSIVE SENIOR HOUSING AS REVENUE. FLAT E.S. TAX ON ALL
RESIDENTIAL & ANY HOUSING. -
32 Reduce Pennons
33 Number ofemployessand compensation both seem high.
34 I Pensionsforthe police/fire & Top ES Mgmt Istoo high. Under#7, Reduce the Size of the City
l Workforce, this person wrote, "Police & Fire ". Under #7 --q Further reduce Employee Salarlesand
Benefits, this person wrote, "Police, Fire, Upper Mgmt".
35 I Further reduce Employee Salaries and Benefits, this person wrote: "Especially FD & PD". That is the
— ` City's job to figure out, but the way to go.
36 Reduce retiree health expenses think Obamacare forthem reduce penaons-
37 — Acrotasthe board cutsto balance expensesto revenue.
1 012412 01 3 9:18 AM
10/23/2013 3:11 PM
1 0/231201 3 3:09 PM
10123/2013 2:35 PM
1012312013 2:32 PM
1012312013 7:28 AM
36 Reconsider out sourcing of fire services /6121/2013 3:47 PM
39 eliminate retirement benefits for those with lessthaft 30 yearseervice 1012112013 3:45 PM
40 �- Reduce retirement benefit& Reduce size of fire department 1 Q12112013 3:37 PM
41 Comments are spot on. The unions have too much sway - limit union contributionsto campalgna 4012112013 3:38 PM
42 Severely cut or eliminate all pension& 10/2112013 3 :32 PM
43 Reduce the budget to Recreation and Parks - used by a limited number of residents. 10121/2013 3:02 PM
16117 52
63
City of El Segundo
Q11 Other Comment
Answered:9 Skipped:119
aY tiesporrsei
Date
1 IDISM isiied with condition of City swimming] pool[sj.
10129/2013 4:18 PM
2 Looted Isle revenue is highest it has been, & projected to Increase. Now there is a deficit How do we
10129/2013 3:49 PM
control our expense?
3 Condition of Streets& Sldewalle "could be Improved ".
10/2812013 8:38 AM
4 Wish Library was open Friday!t Need to know more about (contracting for County servicesfor
10128/2013 8:28 AM
Fire/Sheriff)to male an informed decision.
5 Why Fsthe Library going to reopen on Frldaysfor 9 monthsonly4 Then layoff 3 new hires, 1 full time
10/28/2013 8:21 AM
emp. part lime. It.seems lllp re- opening on Fridays is waste of money and personnel l
6 [Staff] have already paid a lot in the lad round. Police Services are more Important than Fire.
10/24/2013 2:24 PM
7 Don't like the City closed on Fridays. I
10/2412013 2:10 PM
8 Note on #e "Are you satisfied..." – Library Services, this person wrote, "w/ Fri hoursr,
10/23/2013 2:53 PM
9 Under #6 a Rec & Paris; Library Services, this person wrote, "Schedule of classes& facIl HISS Is
10123/2013 2:46 PM
limited. Under #7 — Consider Contracting for County Services for Library, this perm wrote, "unless it
j meansciosing school Ilbrariee.
17/17 53
64
EL SEGUNDO CITY COUNCIL MEETING DATE: November 26, 2013
AGENDA STATEMENT AGENDA HEADING: Unfinished Business
AGENDA DESCRIPTION:
Consideration and possible action to direct staff to prepare the necessary documents to
potentially place ballot measures on the April 2014 election to amend the City's tax codes
for purposes of increasing the City's revenues, including but not limited to: potentially
eliminating the sales tax credit granted to businesses and create a parking lot tax as part
of the City's business license taxes (`BLT "); increasing the utility user tax ( "UUT ");
increasing the transient occupancy tax ( "TOT "); and, imposing a UUT on the residents.
(Fiscallmpact: Unknown).
RECOMMENDED COUNCIL ACTION:
1. Direct staff to prepare the necessary documents to potentially place ballot measures
on the April 2014 election to amend the City's tax codes for purposes of increasing
the City's revenues, including but not limited to:
(a) eliminating the sales tax credit granted to businesses which reduces the
amount of BLT the businesses pay and create a parking lot business license
tax;
(b) increasing the utility user tax imposed on businesses;
(c) increasing the transient occupancy tax;
(d) imposing a utility user tax on the residents; and
(e) amending other portions of the City's tax codes to increase City revenues.
2. Take other related action.
ATTACHED SUPPORTING DOCUMENTS:
November 19, 2013 City Council Staff Report with:
a) Attachment A — UUT and TOT Comparisons with Nearby Cities
b) Attachment B — Survey results and comments -All responses
c) Attachment C — Survey results and comments- Registered Voters
2. Staff presentation to Council at the November 19, 2013 City Council Meeting
FISCAL IMPACT:
Amount Budgeted: $N /A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Mark Hensley, City Attoxnosrv'n
REVIEWED BY: Deborah Cullen, Director of Fina
APPROVED BY: Greg Carpenter, City Manager
65
BACKGROUND AND DISCUSSION:
The Council has held meetings on September 25, October 1, and November 19, 2013 to discuss
potential tax measure to place on the April 2014 election as well as providing direction to the
City Manager regarding a public outreach/education process regarding the City's financial
condition. Attached is the staff report from November 19, 2013, which contains a detailed
account of the City's financial condition, the public outreach process and the various options
available to Council regarding potential tax measures.
At the November 19th staff presented the Council with the survey results of the public outreach
meetings and included in this presentation were policy questions regarding tax measures. (see
attached staff report and attachments). During this meeting Council considered a total tax
(without determining how it would be imposed) of between $5 million and $7.4 million. The
Chamber of Commerce requested that it be given a week to take these numbers back to its
members and provide a proposal from the business community regarding the City placing tax
measures on the April 2014 election. The Council agreed but recognized the relatively short
window of time it has to direct staff as to how it wants to proceed. Accordingly, this Special
Meeting is being held so that the Council can consider the Chamber's proposal and potentially
provide direction to staff.
U �
a�
C)
CU F=54
PIZ$ ct
CU
ct
Eb
r� V �.
%--
CU
O
uu
a
?'
®�
O
do
c:
U
U
p
U
O
4-
N
U
to e
O
u
z
O
I*-
O
6n
cu
U O
CU� 3
X
9
�J
0
o
LL
LU
N
X
9
�J
0
a ;N
U
0
"I=
CU
En
Ct
un
3
0
x
w
4
6b
CU
C,
N
0 0 0 0 0 0
N
I"�J
FLU
v
00
d
4r
67
O
D
w
w
J
o
CL
G
V
U
�
s�
w
tCS
O
W
LL
O
�
o
ago
Cu
M
w
O
4.
w
O
L
O
='
O
4-0
._
._
0
o
E
0
0
cu
0
cn
cn
cu
m
cu
�.
O
O
cu
,>
—
,>
—
Ln
k.o
Q�
CU
L
L
cu
>
>
cu
m
>
>
m
o
O
o
0%11%
NO
NaR
o
L?
e
o
0
Ln
O
m
r I
O
O
m
00
rl%%
k.0
oo
11%.0
r**%
lqf
.:
CL
C
Cuo
a✓
to
c
N
iA
•
V)
to
i
E
U
O
t �
3
i
EL SEGUNDO CITY COUNCIL MEETING DATE: December 3, 2013
AGENDA STATEMENT AGENDA HEADING: Unfinished Business
AGENDA DESCRIPTION:
Consideration and possible action to direct staff to prepare the necessary documents to
potentially place ballot measures on the April 2014 election to amend the City's tax codes
for purposes of increasing the City's revenues, including but not limited to: potentially
eliminating the sales tax credit granted to businesses and create a parking lot tax as part
of the City's business license taxes ( "BLT "); increasing the utility user tax ( "UUT ");
increasing the transient occupancy tax ( "TOT "); and, imposing a UUT on the residents.
(Fiscal Impact: Unknown).
RECOMMENDED COUNCIL ACTION:
1. Direct staff to prepare the necessary documents to potentially place ballot measures
on the April 2014 election to amend the City's tax codes for purposes of increasing
the City's revenues, including but not limited to:
(a) eliminating the sales tax credit granted to businesses which reduces the
amount of BLT the businesses pay and create a parking lot business license
tax;
(b) increasing the utility user tax imposed on businesses;
(c) increasing the transient occupancy tax;
(d) imposing a utility user tax on the residents; and
(e) amending other portions of the City's tax codes to increase City revenues.
2. Take other related action.
ATTACHED SUPPORTING DOCUMENTS:
Attachment A- November 26, 2013 Staff Report
Attachment B - November 19, 2013 Staff Report with following attachments:
Attachment C – UUT and TOT Comparisons with Nearby Cities
Attachment D – Survey results and comments —All responses
Attachment E – Survey results and comments — Registered Voters
FISCAL IMPACT:
Amount Budgeted: $N /A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Mark Hensley, City Attorney
REVIEWED BY: Deborah Cullen, Director of Finance
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
n
1
The Council has held meetings on September 25, October 1, November 19, 2013 and will be
holding a meeting on November 26, 2013, to discuss potential tax measure to place on the April
2014 election as well as providing direction to the City Manager regarding a public
outreach/education process regarding the City's financial condition. Attached are the staff
reports from the November 19 and November 26, 2013, meetings which contains a detailed
account of the City's financial condition, the public outreach process and the various options
available to Council regarding potential tax measures.
At the November 19th staff presented the Council with the survey results of the public outreach
meetings and included in this presentation were policy questions regarding tax measures. (see
attached staff report and attachments). During this meeting Council considered a total tax
(without determining how it would be imposed) of between $5 million and $7.4 million. The
Chamber of Commerce requested that it be given a week to take these numbers back to its
members and provide a proposal from the business community regarding the City placing tax
measures on the April 2014 election. The Council agreed but recognized the relatively short
window of time it has to direct staff as to how it wants to proceed. Accordingly, a Special
Meeting is being on November 26, 2013 so that the Council can consider the Chamber's
proposal and potentially provide direction to staff.
This meeting will be to continue the consideration of potential tax measures by the Council and
to direct staff, if Council did not do so at the November 26 meeting, regarding the potential
preparation of tax measures for the April 2014 election. If Council provides direction to prepare
the tax ballot measures, Staff is recommending another Special Meeting later this week or early
next week for Council to take the necessary actions to place the measures on the April 2014
election.
14
RESOLUTION NO.
A RESOLUTION PLACING A BALLOT MEASURE N INITIATIVC ON
THE APRIL 8, 2014 BALLOT PURSUANT TO ARTICLE XIIIC, § 2(B),
OF THE CALIFORNIA CONSTITUTION; ELECTIONS CODE § 9222;
AND GOVERNMENT CODE §§ 53723 AND 53724 REGARDING
TRANSIENT OCCUPANCY TAXES; USER UTILITY TAXES; AN
AIRPORT PARKING TAX; AND BUSINESS LICENSE TAX
(COLLECTIVELY, THE "CONSOLIDATED TAX MEASURE ").
The City Council of the city of El Segundo resolves as follows:
SECTION 1: Pursuant to Article XIIIC, § 2(b), of the California Constitution; Elections
Code § 9222; and Government Code §§ 53723 and 53724, the City Council places an
initiative ( "ordinance ") on the ballot for a special municipal election to be held in the city
of El Segundo on Tuesday, April 8, 2014.
SECTION 2: A copy of the ordinance to be considered by the voters is attached as
Exhibit 'A" and is incorporated by reference. This ordinance is approved by the City
Council through adoption of this Resolution. The ballot measures will be designated as
Measure A on the ballot.
SECTION 3: The City Council finds that additional tax revenue is required based upon
the following facts and circumstances, as well as the written and oral information
presented at the Council Meeting before the time the Council approved this Resolution:
A. The City's general fund expenditures would have exceeded the City's
incoming general fund revenues in fiscal years 2013/2014 by
approximately $8.5 million but for the use of one -time funds by the City. It
is projected that the City's general fund expenditures will exceed the City's
general fund revenues by approximately $3.6 million for fiscal year
2014/2015 and that this budget shortfall will continue for subsequent fiscal
years. The City's fiscal condition has been negatively impacted by the
unprecedented challenges in the worldwide and national financial markets
and the chronic economic recession in the national, state, regional and
local economies.
B. The recession significantly decreased the City's revenue sources and
negatively impacted expenses requiring the City to institute various
austerity measures including a flexible hiring freeze, elimination of 62 full -
time positions, and expenditure curtailments for critical equipment and
capital projects. Additionally, the City through labor negotiations achieved
short terms savings of an average of $2.1 million per year, but rising
-1-
72 (Replacement Page)
retirement costs have now eliminated these savings.
C. The City is advised to expect a major increase to its mandated
contribution to the Public Employees Retirement System in fiscal year
2014 -2015.
D. The City has decreased its unreserved /undesignated General Fund
balance by 3% and has decreased its Equipment Replacement Fund
balance by 25% since fiscal year 2009 -2010.
E. The region, state, and nation are underwent one of the worst economic
downturns in the history of our Nation and while financial forecasts have
improved, it is anticipated that it will take several more years of significant
economic growth before the City's financial condition strengthens.
F. The California Constitution prohibits the City from enacting new taxes
without voter approval which prevents the City from generating new
revenues to offset losses.
G. The City Manager has recommended comprehensive action to increase
selected revenues including transient occupancy and utility user taxes,
while controlling expenditures by reducing employee compensation,
reducing full -time positions, modifying staffing schedules for municipal
services, modifying terms and conditions of employment; reorganizing
departmental functions, reducing equipment expenditures, and curtailing
various capital projects to eliminate an anticipated $3.6 million deficit in
the General Fund.
SECTION 4: Pursuant to Elections Code §§ 9222 and 13119 the exact form of the
question to be voted on at the election as it should appear on the ballot is as follows:
SHALL THE CONSOLIDATED TAX MEASURE WHICH INCREASES Yes ❑
TRANSIENT OCCUPANCY TAXES ON LODGING BY 2 %; INCREASES
UTILITY USER TAXES ON BUSINESSES BY 2.5%--j IMPOSES A 2.5% NO ❑
UTILITY USER TAX ON RESIDENTS; REDUCES BUSINESS LICENSE
TAX CREDITS; AND IMPOSES A NEW BUSINESS LICENSE TAX ON
COMMERCIALLY OPERATED PARKING LOTS (EXCEPT EMPLOYEE
AND RESTAURANT, HOTEL, THEATER AND RETAIL PATRON, AND
VAILIDATED PARKING) FOR ALL CITY SERVICES BE ADOPTED?
-2-
73 (Replacement Page)
SECTION 5: The City Clerk is directed to forward a copy of this Resolution to the City
Attorney for purposes of preparing a Title and Summary in accordance with the
Elections Code.
SECTION 6: Pursuant to 42 U.S.C. § 1973aa -1 a., the City Clerk will:
A. Translate all ballot statements into Spanish;
B. Make translated copies of ballot statements publicly available.
SECTION 7: The polls will open at 7 a.m. on election day and remain open until 8 p.m.
SECTION 8: The City Council Chamber, 350 Main Street, El Segundo, is designated
the Central Counting Place where all ballots of the election will be tallied.
SECTION 9: The City Clerk is authorized to canvass the returns of the Municipal
Election. The election will be held in all respects as if there were only one election, and
only one form of ballot will be used.
SECTION 10: 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 11: In accordance with Government Code § 53724 this Resolution must
be adopted upon a two - thirds (2/3) vote and will become effective immediately upon
adoption.
PASSED AND ADOPTED this day of December, 2013.
-3-
Bill Fisher, Mayor
74 (Replacement Page)
ATTEST:
Tracy Weaver, City Clerk
APPROVED AS TO FORM;
MARK D. HENSLEY, City Attorney
Karl H. Berger,
Assistant City Attorney
me
75 (Replacement Page)
EXHIBIT A
ORDINANCE NO.
A BALLOT MEASURE AMENDING EL SEGUNDO MUNICIPAL CODE
( "ESMC ") § 3-4 -3 AS TO TRANSIENT OCCUPANCY TAXES;
AMENDING ESMC §§ 3 -7 -1, 3 -7 -2, 3- 7 -3(A), 3- 7 -4(A), 3 -7 -5, 3- 7 -6(A)
RELATING TO USER UTILITY TAXES; AMENDING ESMC § 4 -2 -3
RELATING TO BUSINESS LICENSE TAX CREDITS; AMENDING ESMC
§ 4 -3 -34 AS TO BUSINESS LICENSE TAXES FOR PARKING LOTS; AND
ADDING ESMC § 3-4 -16 ALLOWING THE CITY COUNCIL TO SUSPEND,
REDUCE, AND RESTORE IMPOSITION OF TAXES BY RESOLUTION.
The people of the city of El Segundo do hereby ordain as follows:
SECTION 1: This Ordinance may be referred to as the "Consolidated Tax Measure."
SECTION 2: ESMC § 3 -4 -3 is amended to read as follows:
"3-4-3: IMPOSITION; RATE:
A. Tax Imposed: For the privilege of occupancy in any hotel, each
transient must pay a maximum tax of ten percent (10 %) of the rent charged
by the operator."
SECTION 3: A new § 3 -4 -16 is added to the ESMC to read as follows:
"3 -4 -16: TAX REDUCTIONS AND SUSPENSIONS:
The city council may suspend, reduce, and restore imposition of taxes by
resolution following a public hearing."
SECTION T he following terms set forth in ESMC § -4-7 -1 are nmPnriPri and added_
as applicable, to read as follows:
"COGENERATOR: Any service user, including an electrical corporation,
employing cogeneration technology for producing power from other than a
conventional power source for the generation of electricity.
RESIDENTIAL SERVICE USER: Any service user that is a natural person
residing within a dwelling unit in the city's jurisdiction.
NON - RESIDENTIALSERVICE USER: Any service user that does not fall
included within the definition of a Residential Service User, including but not
limited to retail, commercial, industrial, and professional and non-
professional office uses.
76
"SERVICE USER: Except as otherwise provided, any person required to
pay a tax imposed by this chapter."
SECTION 5: The term "commercial or industrial utility user" set forth in ESMC § 3 -7 -1 is
repealed. All instances of the term "commercial or industrial utility user" set forth in
ESMC Chapter 3 -7 are replaced with the term "service user" as defined by this
Ordinance.
SECTION 6: ESMC § 3 -7 -2 is amended to read as follows:
"3 -7 -2 EXEMPTIONS:
A. Nothing in this chapter may be construed as imposing a tax upon any
person when imposition of such tax upon that service user would be in
violation of the constitution of the United States or that of the state or upon
the city or any of its departments, agencies, boards or commissions or
upon the El Segundo unified school district, Centinela Valley union high
school district and the Wisebum school district, or upon any other person
when imposition of such tax upon that person would be in violation of the
constitution of the United States or the constitution of the state. The tax
administrator will prepare a list of the service users exempt from the
provisions of this chapter by virtue of this section and furnish a copy
thereof to each service supplier.
B. The taxes imposed by this chapter do not apply to "lifeline" residential
service users. To qualify as a "lifeline" residential service user, a person
must meet the following criteria:
Be a natural person; and
2. Be a qualified participant in the California Alternate Rates for
Energy ("CARE") program established by Public Utilities Code §§
739.1 and 739.2 as determined by the most recent California Public
Utility Commission decisions; or
3. Be qualified in accordance with rules and procedures established
by city council resolution following a public hearing. The City
Council is specifically authorized to establish rules and procedures
to implement the intent of this Section.
C. The exemption as a "lifeline" residential service user will first be
recognized on the next full billing cycle after the date of approval.
2
77
D. Persons who would otherwise qualify, but are provided utility services
through a master meter serving multiple housing units, are not eligible for
the "lifeline" residential service user exemption."
SECTION 7: Beginning July 1, 2014, ESMC § 3- 7 -3(A) is amended to read as follows:
"3-7-3: ELECTRICITY USERS TAX:
A. Tax Imposed: A tax is imposed upon every service user in the city using
electrical energy in the city. For non - residential service users, the maximum
tax imposed by this section is at the rate of five and one -half percent (5.5 %)
of the charges made for such energy and must be paid by the service user
paying for such energy. The maximum rate after June 30, 2018 for non-
residential service users is reduced to five percent (5 %). For residential
service users, the maximum tax imposed by this section is at the rate of two
and one -half percent (2.5 %) of the charges made for such energy and must
be paid by the service user paying for such energy. The maximum rate after
June 30, 2018, for residential service users is reduced to two percent (2 %)_
"Charges" includes charges made for: 1) metered energy; and 2) minimum
charges for service, including customer charges, services charges, demand
charges, standby charges and annual and monthly charges, fuel cost
adjustments, etc."
SECTION 8: Beginning July 1, 2014, ESMC § 3- 7 -4(A) is amended to read as follows:
"3-7-4: TAX ON COGENERATED ELECTRICITY:
A. Tax Imposed: A tax is imposed upon every service user in the city
using cogenerated electrical energy in the city. Except for residential service
users, the maximum tax imposed by this section is at the rate of five and
one -half percent (5.5 %) of the value of the cogenerated energy. The
maximum rate after June 30, 2018 for non - residential service users is
reduced to five percent (5 %). For residential service users, the maximum
tax imposed by this section is at the rate of two and one -half percent (2.5 %)
of the value of the cogenerated energy. The maximum rate after June 30,
2018, for residential service users is reduced to two percent (2 %). The value
is equal to the price an electrical corporation, serving the city, would pay to
purchase electrical energy from a cogenerator. The cogenerator must install
and maintain an appropriate utility type metering system which will enable
compliance with this section."
SECTION 9: Beginning July 1, 2014, ESMC § 3 -7 -5 is amended to read as follows:
"3-7-5: GAS USERS TAX:
3
A. Tax Imposed: A tax is imposed upon every service user in the city, other
than a gas corporation regulated by the Public Utilities Commission that is
engaged in the business of selling natural gas to the public, using natural
gas in the city that is delivered through mains or pipes. For non - residential
service users, the maximum tax imposed by this section is at the rate of
five and one -half percent (5.5 %) of the charges made for such gas and
must be paid by the service user paying for such gas. The maximum rate
after June 30, 2018 for non - residential service users is reduced to five
percent (5 %).For residential service users, the maximum tax imposed by
this section is at the rate of two and one -half percent (2.5 %) of the
charges made for such gas and must be paid by the service user paying
for such gas. The maximum rate after June 30, 2018, for residential
service users is reduced to two percent (2 %). "Charges" includes: 1) gas
which is delivered through mains of pipes; and 2) minimum charges for
services, including customer charges, service charges, and annual and
monthly charges.
B. Excluded from the base on which the tax imposed in this section is
computed are: 1) charges made for natural gas which is to be resold and
delivered through mains or pipes; 2) charges made for natural gas sold for
use in production or distribution of water by a public utility or governmental
agency; 3) charges made by a natural gas public utility for natural gas
used and consumed in the conduct of the business of natural gas public
utilities; 4) charges made for natural gas used in the propulsion of a motor
vehicle, as that phrase is defined in the state vehicle code, utilizing natural
gas; and 5) charges related to late payments and returned checks.
C. Collection; Time For Filing Return: The tax imposed by this section is
collected from the service user by the person selling the natural gas. The
person selling the natural gas, on or before the twentieth of each calendar
month, commencing on the twentieth day of the calendar month after the
effective date hereof, make a return to the tax administrator stating the
amount of taxes billed during the preceding calendar month. At the time
such returns are filed, the person selling the natural gas must remit tax
payments to the tax administrator in accordance with schedules
established or approved by the tax administrator.
D. The tax imposed by this section is not intended to apply to natural gas not
purchased from third party vendors and natural gas used for nonutility
purposes.
For the purposes of this subsection, the phrase "natural gas not
purchased from third party vendors" means natural gas which is
produced and owned by the same legal entity where ownership is
not the result of a sale or purchase transaction.
79
2. For the purposes of this subsection, the phrase "natural gas used
for non - utility purposes" means natural gas which is a component
part of a manufactured product produced by an entity which is
subject to the utility users tax."
SECTION 10: Beginning July 1, 2014, ESMC § 3- 7 -6(A) is amended to read as
follows:
"3-7-6: WATER USERS TAX:
A. Tax Imposed: A tax is imposed upon every service user in the city
using water which is delivered though mains or pipes. For non - residential
service users, the maximum tax imposed by this section is at the rate of five
and one -half percent (5.5 %) of the charges made for such water and must
be paid by the service user paying for such water. The maximum rate after
June 30, 2018 for non - residential service users is reduced to five percent
(5 %). For residential service users, the maximum tax imposed by this
section is at the rate of two and one -half percent (2.5 %) of the charges made
for such water and must be paid by the service user paying for such water.
The maximum rate after June 30, 2018, for residential service users is
reduced to two percent (2 %)."
SECTION 11: Beginning July 1, 2014, ESMC § 3- 7 -7(A) is amended to read as
follows:
"3-7-7: COMMUNICATION SERVICES USER TAX:
A. Tax Imposed: A tax is imposed upon every service user in the city
using communication services. For non- residential service users, the
maximum tax impncPrl by this section is four and one -half percent (4.5 %)
of the charges made for such services and must be collected from the
service user by the communication services supplier or its billing agent. The
maximum rate after June 30, 2018 for non - residential service users is
reduced to four percent (4 %). For residential service users, the maximum
tax imposed by this section is two and one -half percent (2.5 %) of the
charges made for such services and must be collected from the service user
by the communication services supplier or its billing agent. The maximum
rate after June 30, 2018, for residential service users is reduced to two
percent (2 %). There is a rebuttable presumption that communication
services billed to a billing or service address in the city are used, in whole
or in part, within the city's boundaries and such services are taxable under
this chapter. If the billing address of the service user is different from the
service address, the service address of the service user must be used for
purposes of imposing the tax. "Charges" includes the value of any other
R
0
services, credits, property of every kind or nature, or other consideration
provided by the service user in exchange for the communication services."
SECTION 12: A new § 3 -7 -19 is added to the ESMC to read as follows:
"3 -7 -19: TAX REDUCTIONS AND SUSPENSIONS:
The city council may suspend, reduce, and restore imposition of taxes by
resolution following a public hearing."
SECTION 13: ESMC § 4- 2 -3(C) is amended to read as follows:
"4 -2 -3: TAX REDUCTION; TAX CREDIT:
C. Percentage Of Tax: For taxes collected for taxing periods
commencing on or after January 1, 2015, the tax credit referred to in
subsection B of this section, will equal up to ten percent (10 %) of the sales
or use tax generated by the business and received by the city during the
twelve (12) month period ending on June 30 preceding the date the tax is
due. For taxes collected for the taxing period commencing on or after
January 1, 2018, the tax credit referred to in subsection B of this section,
will equal up to five percent (5 %) of the sales or use tax generated by the
business and received by the city during the twelve (12) month period
ending on June 30 preceding the date the tax is due.
SECTION 14: Beginning July 1, 2014, ESMC § 4 -2 -34 is amended in its entirety
to read as follows:
"4 -2 -34: PARKING LOTS.
A business license tax is imposed upon every person engaged in the
business of operating a parking lot in the city for vehicles in the amount of
ten percent (1010) of the annual gross receipts generated from the operation
of the parking lot. "Gross receipts" means gross income, as defined in the
Internal Revenue Code. "Gross receipts" does not include amounts
received under a commercial lease whether or not received as rent or
separately assessed. The business license tax imposed by this section
does not apply to gross receipts attributable to employee; theater patron;
restaurant patron; retail patron; hotel patron; and validated (whether self or
valet) parking , for business establishments located within the City."
6
al
SECTION 16: INTERPRETATION. This Initiative must be interpreted so as to be
consistent with all federal and state laws, rules, and regulations. If any section, sub-
section, sentence, clause, phrase, part, or portion of this Initiative is held to be invalid or
unconstitutional by a final judgment of a court of competent jurisdiction, such decision
does not affect the validity of the remaining portions of this Initiative. The voters declare
that this Initiative, and each section, sub - section, sentence, clause, phrase, part, or
portion thereof, would have been adopted or passed irrespective of the fact that any one
or more sections, sub - sections, sentences, clauses, phrases, part, or portion is found to
be invalid. If any provision of this Initiative is held invalid as applied to any person or
circumstance, such invalidity does not affect any application of this Initiative that can be
given effect without the invalid application.
SECTION 16: SEVERABILITY. If any portion of this Initiative is held by a court of
competent jurisdiction to be invalid, the remainder of the initiative and the application of
such provision to other persons or circumstances will not be affected thereby. We the
People indicate our strong desire that: (i) the City Council use its best efforts to sustain
and reenact that portion, and (ii) the City Council implement this Initiative by taking all
steps possible to cure any inadequacies or deficiencies identified by the court in a
manner consistent with the express and implied intent of this Initiative, and then
adopting or reenacting such portion as necessary or desirable to permit the planning
and development of the Project.
SECTION 17: CONSTRUCTION. This Initiative must be broadly construed in
order to achieve the purposes stated in this Initiative. It is the intent of the voters that
the provisions of this Initiative be interpreted or implemented by the City and others in a
manner that facilitates the purposes set forth in this Initiative.
SECTION 18: ENFORCEABILITY. Repeal of any provision of the El Segundo
Municipal Code does not affect any penalty, forfeiture, or liability incurred before, or
preclude prosecution and imposition of penalties for any violation occurring before this
Ordinance's effective date. Any such repealed part will remain in full force and effect for
sustaining action or prosecuting violations occurring before the effective date of this
Ordinance.
SECTION 19: VALIDITY OF PREVIOUS CODE SECTIONS. If this entire
Ordinance or its application is deemed invalid by a court of competent jurisdiction, any
repeal or amendment of the_ESMC or_ other _city ordinance by this Ord_ inance will be
rendered void and cause such previous ESMC provision or other the city ordinance to
remain in full force and effect for all purposes
SECTION 20: EFFECTIVE DATE. This Initiative will enact and impose a general
tax. Accordingly, it will be submitted to a general election on April 8, 2014 for voter
approval. If a majority of voters vote in favor of this Initiative, it will become valid and
binding ten days after the date that the City Council certifies the election results in
accordance with Elections Code § 9217.
VA
The Mayor will sign this Initiative and the City Clerk will attest and certify to the passage and
adoption of this Ordinance if a majority of the voters voting in the City's general election on April
8, 2014 approve the proposition asking whether the voters approve this Initiative.
PASSED AND ADOPTED this day of
ATTEST:
Tracy Weaver,
City Clerk
APPROVED AS TO FORM:
MARK D. HENSLEY, City Attorney
Karl H. Berger, Assistant City Attorney
Bill Fisher, Mayor
RN
RESOLUTION NO.
A RESOLUTION DIRECTING THE CITY ATTORNEY TO PREPARE AN
IMPARTIAL ANALYSIS OF THE BALLOT MEASURE REGARDING THE
CONSOLIDATED TAX MEASURE.
The City Council of the city of El Segundo resolves as follows:
SECTION 1: Pursuant to Elections Code § 9280, the City Clerk is directed to transmit a
copy of the ballot measure regarding the Consolidated Tax Measure to the City Attorney
for an impartial analysis.
SECTION 2: Upon receiving the ballot measure, the City Attorney is directed to prepare
an impartial analysis of the measure showing its effect, if any, on existing law and the
operation of the measures. Such analysis must not be more than 500 words.
SECTION 3: The City Clerk is directed to have the City Attorney's analysis printed
before the arguments for and against the measures. Immediately below the impartial
analysis, in not less than 10 point bold type, the City Clerk should have the following
language printed: "The above statement is an impartial analysis of Measure A." If you
desire a copy of the legislation affected by this measure, please call the City Clerk's
office at (310) 524 -2307 and a copy will be mailed at no cost to you."
SECTION 4: This Resolution will remain effective until superseded by a subsequent
resolution.
SECTION 5: This Resolution will become effective immediately upon adoption.
PASSED AND ADOPTED this day of December 2013.
ATTEST:
Tracy Weaver, City Clerk
Approved as to form:
Mark D. Hensley, City Attorney
0
Karl H. Berger, Assistant City Attorney
Bill Fisher, Mayor
RESOLUTION NO.
A RESOLUTION ESTABLISHING REQUIREMENTS FOR BALLOT
ARGUMENTS FILED WITH THE CITY CLERK TO BE INCLUDED WITH
VOTER INFORMATION FOR THE GENERAL MUNICIPAL ELECTION
ON APRIL 8, 2014.
The City Council of the city of El Segundo resolves as follows:
SECTION 1: Pursuant to Elections Code § 9281, qualified voters may submit
arguments for and against the ballot measure(s), in addition to rebuttal arguments, for
the April 8, 2014, General Municipal Election.
SECTION 2: Arguments filed in accordance with this Resolution must comply with the
following requirements in accordance with Elections Code §§ 9282, 9283, 9285, and
9286:
A. Arguments must be in writing and not exceed three hundred (300) words
except for rebuttal argument which may not exceed two hundred and fifty
(250) words;
B. Arguments may be submitted by the City Council; any councilmember
authorized to submit an argument by the City Council; any individual voter
eligible to vote on the measures; any bona fide association of citizens; or any
combination of voters and associations;
C. Arguments must be typewritten in at least a 12 point font;
D. Arguments may not include underlining, italics, asterisks, or other, similar,
type of formatting;
E. Arai iments mast be accomnanii-d by the printed name and signature or
printed names and signatures of the person or persons submitting it, or, if
submitted on behalf of an organization, the name of the organization and the
printed name and signature of at least one of its principal officers.
F. If more than five (5) signatures accompany an argument, only the first five (5)
will be printed.
G. Arguments for or against the ballot measures must be received in the City
Clerk's office not later than 14 days after the City Council calls for an election.
Rebuttal arguments must be received not later than 10 days after the
Arguments submittal deadline.
SECTION 3: Pursuant to 42 U.S.C. § 1973aa -1 a., the City Clerk will:
A. Translate all ballot statements into Spanish;
B. Make translated copies of ballot statements publicly available.
SECTION 4: This Resolution will remain effective until superseded by a subsequent
resolution.
SECTION 5: This Resolution will become effective immediately upon adoption.
PASSED AND ADOPTED this day of December, 2014.
ATTEST:
Tracy Weaver, City Clerk
Approved as to form:
MARK D. HENSLEY, City Attorney
Karl H. Berger, Assistant City Attorney
2
Bill Fisher,
Mayor
0
RESOLUTION NO.
A RESOLUTION IDENTIFYING THE CURRENT COUNCIL'S
STATEMENT OF PURPOSE AND INTENT FOR WHICH TAX REVENUE
GENERATED FROM THE CONSOLIDATED TAX MEASURE SHOULD
BE EXPENDED TO THE EXTENT POSSIBLE; AND AMENDING THE
MEMBERSHIP FOR THE EL SEGUNDO CAPITAL IMPROVEMENT
PROGRAM ADVISORY COMMITTEE.
The City Council of the City of El Segundo does resolve as follows:
SECTION 1: The City Council finds and declares that:
A. On April 8, 2014, voters will consider whether to approve the Consolidated
Tax Measure placed on the ballot by the City Council;
B. The City Council believes that it is in the public interest to adopt this
Resolution to set forth its purpose and intent for the use of the funds and
its desire that future Councils also use the funds in the same manner, to
the extent possible, if the voters approve the Consolidated Tax Measure
which is
1. Approximately 1/3 or $2.0 million of the revenues generated from
the Consolidated Tax Measure will be allocated for capital
improvement projects identified by the City;
2. Businesses should be shareholders in the expenditure of such
monies. Consequently, it is important that the Chamber of
Commerce participate in making recommendations for how tax
revenue received as a result of the Consolidated Tax Measure
should be spent; and
3. The taxes approved by voters in the Consolidated Tax Measure be
reduced during such times that the City, based upon increase of
other general fund revenues, is able to operate the City without use
of the Consolidated Tax Measure funds.
C. As shown throughout the City Council's discussion regarding the
Consolidated Tax Measure, asking businesses and residents to pay more
in taxes is undesirable. The City Council anticipates that if the economic
recovery is maintained and the City continues to reduce costs to the
extent possible while maintaining acceptable level of services that it
provides to residents and businesses, the tax burden can be reduced
within three years.
-1-
go
SECTION 2: CAPITAL IMPROVEMENT PROGRAM. The City Manager and City
Council must, as part of preparing and adopting budgets for upcoming fiscal years, to
the extent feasible designate 1/3 or $2.0 million of the revenues received from the
Consolidated Tax Measure for the City's capital improvement program as
recommended by the Capital Improvement Program Advisory Committee ( "CIPAC "),
approved by the Planning Commission pursuant to Government Code § 65103, and
implemented by the City Council in accordance with its budget resolution. It is the
Council's purpose and intent that it and future Councils not use %1/3 or $2.0 million of
monies from the Consolidated Tax Measure to the extent feasible for any other purpose
including, without limitation, employee salaries or benefits.
SECTION 3: CIPAC. To help ensure that revenue from the Consolidated Tax Measure
is properly allocated in accordance with this Resolution to the extent feasible, the City
Council amends the CIPAC membership and allows the Chamber of Commerce to
select two individuals to be included on the CIPAC.
SECTION 4: This Resolution is exempt from review under the California Environmental
Quality Act (California Public Resources Code §§ 2100, et seq., "CEQA ") and CEQA
regulations (14 California Code of Regulations §§ 15000, et seq.) because it establishes
rules and procedures to implement government funding mechanisms; does not involve
any commitment to a specific project which could result in a potentially significant
physical impact on the environment; and constitutes an organizational or administrative
activity that will not result in direct or indirect physical changes in the environment.
Accordingly, this Resolution does not constitute a "project" that requires environmental
review (see specifically 14 CCR § 15378(b)(4 -5)).
SECTION 5: This Resolution must be interpreted so as to be consistent with all federal
and state laws, rules, and regulations. If any section, sub - section, sentence, clause,
phrase, part, or portion of this Resolution is held to be invalid or unconstitutional by a
final judgment of a court of competent jurisdiction, such decision does not affect the
validity of the remaining portions of this Resolution. If any provision of this Resolution is
held invalid as applied to any person or circumstance, such invalidity does not affect
any application of this Resolution that can be given effect without the invalid application.
SECTION 6: If any portion of this Resolution is held by a court of competent jurisdiction
to be invalid, the remainder of the Resolution and the application of such provision to
other persons or circumstances will not be affected thereby.
SECTION 7: This Resolution must be broadly construed in order to achieve the
purposes stated in this Resolution. It is the City Council's intent that the provisions of
this Resolution be interpreted or implemented by the City and others in a manner that
facilitates the purposes set forth in this Resolution.
-2-
SECTION 8: This Resolution will become effective if and when the Consolidated Tax
Measure becomes effective in accordance with applicable law. It will remain effective
unless subsequently amended or repealed by the City Council.
PASSED AND ADOPTED this day of .2013.
ATTEST:
Tracy Weaver,
City Clerk
APPROVED AS TO FORM:
MARK D. HENSLEY, City Attorney
0
Karl H. Berger, Assistant City Attorney
-3-
Bill Fisher, Mayor
0
El Segundo
TheCHAM3ER
The T,niee fi r l iwitze,w
December 3, 2013
Honorable City Councilmembers
City of El Segundo
350 Main Street
El Segundo, CA 90245
RE: FOLLOW UP BALLOT PROPOSAL
Dear Mayor & Councilmembers:
HAND DELIVERED
The El Segundo Chamber of Commerce appreciated the robust and detailed discussion the City Council
held at its meeting last Tuesday night. The dialogue was very informative and it has helped us to refocus
our efforts. As we've said before, a Chamber of Commerce is not in the business of advocating for tax
increases, but we fully understand the urgency to rectify the unsustainable financial course the City finds
itself on.
Additionally, we do not want to give the impression that we are negotiating with the City Council. We
have worked to provide this follow up proposal in hopes that the City Council will find it beneficial and
that together we can move forward in support of a tax initiative on the April 2014 election.
The El Segundo Chamber of Commerce proposes a phased tax increase:
1) Years 1 to 3: raise $6.5 million annually in new tax revenue for the City
We recommend that this is reached through the following:
• UUT 2.5% increase on business:
• UUT 2.5% on residents:
• TOT 2% increase:
ri Airport Parking tall:
• BLT Credit reduction to 20%
$ 3,503,000
$ 855,700
$ 1,275,000
$ 295,000
$ 552,750
$ 6,481,450
2) Year 4 forward: raise $5.9 million annually in tax revenue for the City
We recommend that this is reached through the following:
• UUT 2% increase on business:
$
2,802,450
• UUT 2% increase on residents:
$
684,700
• TOT 2 % increase:
$
1,275,000
• Airport Parking Tax
$
295,000
• BLT Credit reduction to 10%
$ 829,125
$ 5,886,225
Note: increases are against today's current rates
427 Main Street 0 El Segundo, CA 90245 0 310.322.1220 • Fax 310.322.6880
Email: info@ elsegundochamber.org 90
Our proposal provides a front loading in the first three years to help the City meet some of its capital
improvement needs, while in the fourth and subsequent years the City will be able to meet its combined
operational and capital shortfalls as currently projected.
We hope that this new tax base, combined with a strengthening of the City's economic development
efforts, will ensure the financial stability of El Segundo for decades to come. And, down the road, should
the fiscal picture improve significantly, we would hope a future City Council would suspend unnecessary
taxes and or we will petition a future City Council to consider such a suspension of some of these tax
increases.
As we move forward together we believe the following points are important:
1) The issue of taxes should be placed on a single ballot question. We are all in this together and a
single ballot question to raise taxes for the future of El Segundo is much easier than a menu of
choices. If a single ballot question is not selected than we ask that the Business /Residential UUT
be placed together as a single ballot question and the TOT /Airport Parking Tax /BLT Credit
Reduction be combined in another ballot question.
2) The Chamber would appreciate the City Council's action on introducing and passing an
ordinance to bifurcate and protect the capital improvement funds placed on the ballot. This
would avoid the need for an additional "advisory vote" on the ballot and would allow all of us to
campaign in support of the April ballot with protections already in place, understanding of
course that these protections can be reversed by a future vote of the City Council.
3) The Chamber would appreciate the City Council's additional action to codify the already existing
practice of having two business community members on the City's Capital Improvement Project
Advisory Committee. We would ask that the ordinance or resolution by the Council stipulate
that the Chamber will recommend the two business community members to the City Council.
4) The Chamber appreciates the City Council's past direction to remove consideration of the
"advisory vote" on school funding percentages and we also appreciate the City's constant
diligence in revisiting its costs structure, including but not limited to employee service contracts,
overall operating expenses and fees charged for services.
Finally, the Chamber will participate in a collaborative citywide campaign effort to seek passage of the
tax proposals we have recommended.
Again, we thank you for time and your significant effort in working with the Chamber to craft a proposal
that works for everyone involved.
Sincer ly,
SandyJacokU
Chairman of t oard
cc: City Clerk Tracy Weaver
City Manager Greg Carpenter
91
Shillinci, Mona
From: Shilling, Mona
Sent: Tuesday, December 03, 2013 5:46 PM
To: *ALL CITY COUNCIL; Weaver, Tracy (City Clerk); Binder, Crista
Cc: Hensley, Mark (City Attorney); Berger, Karl (Assistant City Attorney); Jennings, Mishia;
Tagle, Mickie; Cullen, Deborah; Garcia, Angelina
Subject: FW: 2013 -12 -03 CC Agenda Packet - Item #1 - Public Communications - 2nd
Attachments: 2013 -12 -03 CC Agenda Packet - Item #1 - Public Communications - Mike Robbins.pdf
Attached is Public Communication received from Mike Robbins in the City Clerk's Office related to the December 3,
2013 City Council Agenda, Item #1.
A paper copy has been placed in your mailboxes at City Hall.
Thank you,
Mona S
From: Shilling, Mona
Sent: Tuesday, December 03, 2013 5:08 PM
To: *ALL CITY COUNCIL; Weaver, Tracy (City Clerk); Binder, Crista
Cc: Hensley, Mark (City Attorney); Berger, Karl (Assistant City Attorney); Jennings, Mishia; Tagle, Mickie; Cullen,
Deborah; Garcia, Angelina
Subject: 2013 -12 -03 CC Agenda Packet - Item #1- Public Communications
Attached is Public Communication received from the El Segundo Chamber of Commerce in the City Clerk's Office related
to the December 3, 2013 City Council Agenda, Item #1.
A sealed envelope from the Chamber with the attached letter has been placed in your mailboxes at City Hall.
Thank you,
Mona F. Shilling
Depute Cttu CLeri2
Ci to of EL seg uwdo
CttU CLerizz's office
350 Matvu street
EL segu�o, CAF 90245
Wori2Phowe NKVKber: (3io) 524 -230
Worl2 ewt.a%1,.4ddress: vu .shi.4l.iv�CA?elseo�uwalo.orai
92
Shiging, Mona
From:
Mike Robbins <mikerobbins20yahoo,com>
Sent:
Tuesday, December 03, 2013 5 :30 PM
To:
ALL ELECTED OFFICIALS, Domann, Cathy
Cc:
Mike Robbins
Subject:
My Public Communications for the 12/3/2013 El Segundo City Council Meeting
Attachments:
2013-12 -03 -Email -Mike Robbins -ESCC- Written Mtg Public Communications,pdf
93
Subject: Written public communications for December 3, 2013, 7:00 P.M. Regular City
Council meeting
From: Mike Robbins (MikeRobbins2 @yahoo.com)
To: AIICouncilAndClerks @ElSegundo.org; CDomann@ElSegundo.org;
MShilling @ElSegundo.org;
Cc: MikeRobbins2 @yahoo.com;
Bcc:
Date: Tuesday, December 3, 2013
December 3, 2013
Re: Written Public Communications — 7:00 PM.
To: El Segundo City Council, City Clerk, Deputy City Clerk.
From: Michael D. Robbins, long time El Segundo resident.
Here is my written public communications for the December 3, 2013, 7:00 P.M. Regular
El Segundo City Council meeting.
Please distribute it to the entire City Council and the City Clerk, City Manager, and City
Attorney, and post it on the official City web site at ElSegundo.org on the City Council
Agendas web page, http: / /www.ElSegundo.org /depts /elected /aaendas.asp, as is
customary.
Thank you.
Sincerely,
Michael D. Robbins
MikeRobbins2 @yahoo.com
PublicSafetyProject.org
httg:HPublicSafetyProject.ora/
YouTube.com /user /PublicSafetyProject
httg : / /www.YouTube.com /user /PublicSafetyProject
This written public communication for the December 3, 2013 7 :00 P.M. Regular El
Segundo City Council meeting addresses Unfinished Business Item C1, and expresses
my opposition to that agenda item.
Michael D. Robbins — Written Communication Page 1 of 2December 3, 2013 El Segundo City Council Meeting
.,
Unfinished Business Item C -1:
Ballot Measure(s) for the April 2014 city election to raise city taxes on residents on
businesses.
First, I urge everyone who owns property in the city to review their property tax bill and
be sure to pay it by the December 10 delinquency date to avoid a large penalty.
Payments must be postmarked by December 10 to be considered on time.
Also, look at all the add -on items on the tax bill, especially voter - approved increases,
and the total for the entire year, which is the sum of both installments, and ask yourself
if you agree with those on the City Council who claim we are not paying enough
property taxes.
Property taxes are in addition to our state and federal income taxes, Social Security and
Medicare taxes, and sales taxes.
A majority on the El Segundo City Council proposes to raise city taxes on residents and
businesses. However, the customers pay the business taxes which are passed on to
them as a cost of doing business.
The present and past city councils have done far too little to reign in and roll back the
wildly excessive and unsustainable city employee salaries, benefits, and pensions.
These taxes will not solve the underlying problem, and the city council will keep coming
back for more taxes until it solves the underlying problem.
Please vote "NO" on all ballot measures to raise taxes and create new taxes.
That concludes my public communications for the December 3, 2013, 7:00 P.M. El
Segundo City Council meeting.
Michael D. Robbins — Written Communication Page 2 of 213ecember 3, 2013 El Segundo City Council Meeting
95
Shilling. Mona
From: Shilling, Mona
Sent: Tuesday, December 03, 2013 5:08 PM
To: "ALL CITY COUNCIL; Weaver, Tracy (City Clerk); Binder, Crista
Cc: Hensley, Mark (City Attorney); Berger, Karl (Assistant City Attorney); Jennings, Mishia;
Tagle, Mickie; Cullen, Deborah; Garcia, Angelina
Subject: 2013 -12 -03 CC Agenda Packet - Item #1- Public Communications
Attachments: 2013 -12 -03 CC Agenda Packet - Item #1- Public Communications.pdf
Attached is Public Communication received from the El Segundo Chamber of Commerce in the City Clerk's Office related
to the December 3, 2013 City Council Agenda, Item #1.
A sealed envelope from the Chamber with the attached letter has been placed in your mailboxes at City Hall.
Thank you,
Mona F. Shilling
Depute ci.tu cl,0z i
cite of EL . Seguwdo
cite aterizz's off ice
350 MCILV street
EL.Seguvmdo, 3A 90245
WOriQPhovAe Nicvu.ber: (310) 524 -2307
Worl2 ewi.cti,L.Rddress: w�.shLLLi.waCQ2else�uwdo.ar�
.A
El Segundo
TheCHAM3ER
T /7e 17nire tnr Biwiliddli
December 3, 2013
Honorable City Councilmembers
City of El Segundo
350 Main Street
El Segundo, CA 90245
RE: FOLLOW UP BALLOT PROPOSAL
Dear Mayor & Councilmembers:
HAND DELIVERED
,.d
The El Segundo Chamber of Commerce appreciated the robust and detailed discussion the City Council
held at its meeting last Tuesday night. The dialogue was very informative and it has helped us to refocus
our efforts. As we've said before, a Chamber of Commerce is not in the business of advocating for tax
increases, but we fully understand the urgency to rectify the unsustainable financial course the City finds
itself on.
Additionally, we do not want to give the impression that we are negotiating with the City Council. We
have worked to provide this follow up proposal in hopes that the City Council will find it beneficial and
that together we can move forward in support of a tax initiative on the April 2014 election.
The El Segundo Chamber of Commerce proposes a phased tax increase:
1) Years 1 to 3: raise $6.5 million annually in new tax revenue for the City
We recommend that this is reached through the following:
• UUT 2.5% increase on business:
• UUT 2.5% on residents:
• TOT 2% increase:
• Airport Parking tax:
• BLT Credit reduction to 20%
$ 3,503,000
$ 855,700
$ 1,275,000
$ 295,000
$ 552,750
$ 6,481,450
2) Year 4 forward: raise $5.9 million annually in tax revenue for the City
We recommend that this is reached through the following:
• UUT 2% increase on business:
$
2,802,450
• UUT 2% increase on residents:
$
684,700
• TOT 2 % increase:
$
1,275,000
• Airport Parking Tax
$
295,000
• BLT Credit reduction to 10%
$ 829,125
$ 5,886,225
Note: increases are against today's current rates
427 Main Street a El Segundo, CA 90245 e 310.322.1220 • Fax 310.322.6880
Email: info@ elsegundochamber.org 97
Our proposal provides a front loading in the first three years to help the City meet some of its capital
improvement needs, while in the fourth and subsequent years the City will be able to meet its combined
operational and capital shortfalls as currently projected.
We hope that this new tax base, combined with a strengthening of the City's economic development
efforts, will ensure the financial stability of El Segundo for decades to come. And, down the road, should
the fiscal picture improve significantly, we would hope a future City Council would suspend unnecessary
taxes and or we will petition a future City Council to consider such a suspension of some of these tax
increases.
As we move forward together we believe the following points are important:
1) The issue of taxes should be placed on a single ballot question. We are all in this together and a
single ballot question to raise taxes for the future of El Segundo is much easier than a menu of
choices. If a single ballot question is not selected than we ask that the Business /Residential UUT
be placed together as a single ballot question and the TOT /Airport Parking Tax/BLT Credit
Reduction be combined in another ballot question.
2) The Chamber would appreciate the City Council's action on introducing and passing an
ordinance to bifurcate and protect the capital improvement funds placed on the ballot. This
would avoid the need for an additional "advisory vote" on the ballot and would allow all of us to
campaign in support of the April ballot with protections already in place, understanding of
course that these protections can be reversed by a future vote of the City Council.
3) The Chamber would appreciate the City Council's additional action to codify the already existing
practice of having two business community members on the City's Capital Improvement Project
Advisory Committee. We would ask that the ordinance or resolution by the Council stipulate
that the Chamber will recommend the two business community members to the City Council.
4) The Chamber appreciates the City Council's past direction to remove consideration of the
"advisory vote" on school funding percentages and we also appreciate the City's constant
diligence in revisiting its costs structure, including but not limited to employee service contracts,
overall operating expenses and fees charged for services.
Finally, the Chamber will participate in a collaborative citywide campaign effort to seek passage of the
tax proposals we have recommended.
Again, we thank you for time and your significant effort in working with the Chamber to craft a proposal
that works for everyone involved.
Sincer ly,
Sa dy, Taco
Chairman of t oard
cc: City Clerk Tracy Weaver
City Manager Greg Carpenter
99
Shilling, Mona
From: Shilling, Mona
Sent: Tuesday, November 26, 2013 1:41 PM
To: *ALL CITY COUNCIL; Weaver, Tracy (City Clerk); Binder, Crista
Cc: Hensley, Mark (City Attorney); Berger, Karl (Assistant City Attorney); Domann, Cathy;
Jennings, Mishia; Tagle, Mickie; Cullen, Deborah; Garcia, Angelina
Subject: 2013 -11 -26 CC Agenda Packet SPECIAL - Item #1- Public Communications
Attachments: 2013 -11 -26 CC Agenda Packet SPECIAL -Item #2 - Public Communications,pcif
Attached is Public Communication received from the El Segundo Chamber of Commerce in the City Clerk's Office related
to the November 26, 2013 SPECIAL City Council Agenda, Item #1.
Thank you,
Mona F. Shilling
Deputd citd cleric i
city of EL seo"Vwto
C%t� eLerle's of f°�,ce
350 MR Lm street
ELseguwdo, aA90245
W00Z Phowe NvmbeY: (3W) 524 -2307
WOYiZ ew+.ail,4ddresS: wtshtLLEL44 _eLser0u�o.ora
El Segundo
I he CHAM3ER
November 26, 2013
Honorable City Councilmembers
City of El Segundo
350 Main Street
El Segundo, CA 90245
HAND_ DELIVERED
RE: BALLOT PROPOSAL FOR AN EL SEGUNDO UUT & TOURISM TAX
Dear Mayor & Councilmembers:
The El Segundo Chamber of Commerce has appreciated the constructive public dialogue that has taken
place over the last two months concerning the City's financial future. When this process began, the
Chamber outlined three principles to help guide the City's budget deliberations:
1) Businesses will do more;
2) The City needs to do more;
3) El Segundo residents need to also participate.
We are pleased that the community education effort undertaken by the City has helped to raise
awareness amongst residents and for the first time in the City's history, a residential tax on utilities has
been actively advanced. Additionally, we are pleased by the City's own efforts to investigate how City
operations can be run more cost effectively while also looking at city fees for services. It is now time for
the business community to do its part.
We do not want to see El Segundo's financial reserves being decimated, thereby threatening its
solvency. We fully understand the urgency to rectify this unsustainable financial course the City finds
itself on. At the same time, we believe that one of the important definitions of "business friendly" is how
a City applies its tax policy. Supporting new taxes is not a core activity for a Chamber of Commerce and
in fact our mission Is to advocate for lower taxes so our businesses can grow and create more jobs.
At last week's City Council meeting, once again, new numbers were presented to the Council and public
by City staff. There were also wide ranging comments by some Councilmembers. The business
community does not support a "tax and spend" mentality.
THE SHORTFALL TARGET
As we approach a review of the latest projections the City staff has put forward, we question the
"additional funds" of $4.4 million a year over five years as well as $3.8 million for "one -time projects."
While we well understand that there are deferred rehabs and repairs needed, this request totals over
$25 million in new taxes alone. The business community cannot support fully funding these wish lists
through new taxes.
427 Main Street • El Segundo, CA 90245 * 310.322.1220 • Fax 310.322.6880
Email: info @elsegundochamber.org 100
What we can and will support is the City's request to meet its operational shortfall through new taxes. It
is projected that this shortfall will range from $3.5 million to $3.8 million annually. While we have
varying views on salaries, benefits and contract obligations, these are the domain of the City staff and
our elected officials to negotiate and manage. We will support new taxes to cover the City's operational
shortfall in the range of $3.5 million to $3.8 million.
We will also support the City's annual "capital infrastructure" shortfall, but we believe the $2 million
amount used by City staff is not entirely accurate. For example, the "enhanced aquatic program" is
shown as an $800,000 annual expense. We believe that this is high and will not be the amount required
once the City /Wiseburn pool complex is completed and has been up and operational for a few years. We
feel the "capital infrastructure" shortfall is more in the range of $1.5 million.
In summary, we see the City's ongoing operational and capital expenditure shortfall being in the range
of $5 million to $5.8 million and it is that target we are proposing to help the City meet.
NEW TAXES
The El Segundo Chamber of Commerce proposes a phased tax increase:
1) Years Ito 3: raise $6.8 million annually in new tax revenue for the City
The Chamber has front loaded the first three years in taxes to enable the City to address some
of its "wish list" deferred maintenance items. This will require the City to prioritize what is
absolutely required. This is the same type of decision making businesses undertake every day.
2) Year 4 and 5: raise $5,057,600 annually in tax revenue for the City
This amount meets the City's operational and capital expenditure shortfall, but the picture
should be even better because:
• The City's enhanced economic development efforts will bring in more than the
projected $350,000 annually —we believe that amount is closer to $750,000
annually once new development that has been approved is opened plus new
economic development efforts that are on the horizon are implemented.
• The City is pursuing with the County how to increase the City's $0.06 in property
tax revenue and if successful (understanding the fix may take two or three
years) this will help significantly in providing new income to meet the City's
deferred rehab and repairs plus other priorities.
• As stated above, we believe the costs associated with the City /Wiseburn pool
are inflated and within three years the pool should be operating on a much
better financial footing than has been projected.
• And the City's continued efforts to contain costs and levy increased fees for
services that are aligned with neighboring cities will also help.
• The additional $5,057,600 in taxes would continue forward until the end of year
five when the tax increases would expire and tax rates would return to current
levels.
The El Segundo Chamber of Commerce believes this is a balanced and reasonable approach to new
taxes.
101
TWO SEPARATE BALLOT MEASURES
We propose that these new taxes are raised through two separate ballot measures on April 2014
municipal election:
1) Utility Tax
For years 1 to 3, we propose a 3 percentage point increase (representing a 100% increase to
business) in the City's UUT (4% for telephone). This would be levied on both business &
residents raising $5,230,650 annually ($4,203,600 from businesses and $1,207,050 from
residents). This increase would sunset at the end of year three. And in years four and five, UUT
would be at a 2% increase from today's rate. This will provide $3,487,100 in tax revenue.
• Using a 3% UUT, we project that large residential homes will pay $75 /year and
for a small condominium the tax would be approximately $35 /year. Surely our
residents can afford less than $100 /year in new taxes to ensure the City
continues to operate at the current levels of service.
• It's important to point out that the business community's UUT will rise to 6%
over the first three years while residents will be at 3%, as residents currently do
not pay a UUT.
• The UUT will go down in year four and five when the UUT rate sunsets to 5% for
business and 2% for residents.
• By combining the business & residential UUT on a single ballot it sends a clear
message that "we are in this together" in helping to meet the City's economic
needs.
2) Tourism Tax
We propose to raise the City's TOT tax by 2% to generate $1,275,000 annually in new revenue
and to also create an Airport Parking Tax which is projected by the City to raise an additional
$295,000 annually.
• The regional hotel environment is very competitive and extremely price
sensitive. An increase in the TOT means that El Segundo hotels will be restricted
in their ability to raise their own room rates as visitors look at the total price of a
room, not how the charges are distributed.
• Los Angeles has the LA Convention & Visitors Bureau, plus Gateway to LA,
promoting their hotels to gain conventions and hotel stays as well as creating
amenities like a beach shuttle service for hotel guests.
• In Manhattan Beach, its City Council voted last year to provide funding to its
Chamber of Commerce to develop a visitor's bureau to promote the City as a
destination.
• El Segundo has nothing that compares to these efforts. With the TOT increase
will the City now start to better promote El Segundo hotels?
• Additionally, the TOT is a "hidden tax" on our local businesses that generate
significant room nights for El Segundo hotels.
• It is Important that the City not judge TOT by a comparison chart between
different cities as other cities provide hotels with incentives and help in
attracting visitors, while El Segundo does not.
WHY BLT CREDIT IS CRITICAL
Why have we not touched the idea of cancelling out the current Business License Tax ( "BLT ") credit? We
have not touched the "BLT" because it is a significant economic development tool and lynchpin to why
102
El Segundo was selected as the first "most business friendly city in LA County." The City's own
economic development materials and website trumpet El Segundo's "business license sales -use tax
credit." Why would the City want to do away with one of its greatest tools for ongoing economic
development?
Please allow us to explain the significance of the BLT credit.
The current credit was put in place to incentivize those businesses that generate sales in our City. For
example, for every dollar in sales, the City receives $0.09 cents in taxes /revenues. The current BLT sales
tax credit reduces that to $0.08 cents as an incentive to keep the business and its sales in El Segundo.
Removing that one penny would make El Segundo's sales taxes equal to the City of Los Angeles. We
don't think that is an economic development plus in recruiting businesses to our City. And obviously, If
El Segundo removes the BLT credit other municipalities who compete for El Segundo's sales revenues
would promote this and work to create their own incentives to exploit the City's mistake.
Since the BLT revenue is generated based on the total "sales amount" of a transaction those companies
with large sales would suffer the most. Companies that generate large sales are also the ones employing
more people. Sales and employment are tied together. We don't want to force our large employers to
look elsewhere nor do we want our small vendors to suffer. If the BLT credit is overturned, what would
stop large businesses from finding vendors in another city with lower sales taxes?
The BLT is an economic development tool as well as a job generator and that's why we have left it in
place.
In closing, we would like to offer a few final and important points.
First, the Chamber's desire to see infrastructure improvements is sincere and that is why we would
request the ballot language include a "lock box" for capital improvement revenues so that the amount
set aside for capital infrastructure cannot be raided for things like salary increases or other operational
costs.
Second, given that the Chamber is focused on infrastructure improvements we would ask that the ballot
language include that two business community members — selected by the Chamber of Commerce —be
given seats on the City's Capital Improvement Project Advisory Committee and that the Committee be
vested with the ability to ensure that taxes raised for capital improvements go to capital improvements
and not ongoing City operational costs.
Again, we thank you for the constructive dialogue that will result in a solid economic future for El
Segundo.
Sincer. Y.
Bandy Jacob jBrd '
Chairman ofth
cc; City Clerk Tracy Weaver
City Manager Greg Carpenter
103
Domann, Cathy
From: Carpenter, Greg
Sent: Monday, November 25, 2013 11:13 AM
Subject: FW: El Segundo's Property Tax Share - Easy Reader 11/21/2013
See response below to Mr. Johnson
From: Carpenter, Greg
Sent: Monday, November 25, 2013 11:02 AM
To: 'DickCRJ @aol.com'
Subject: RE: El Segundo's Property Tax Share - Easy Reader 11/21/2013
Mr. Johnson,
I appreciate and share your concerns. Prior to Proposition 13, Cities were able to set their Individual property tax
rates. Proposition 13 took this ability away and standardized the methodology for assessment, Increases and
collection. What was not standardized was the apportionment of property taxes to cities. Instead, the legislation
assumed that Cities had been operating with their Individual tax rates and therefore could continue to provide services
at those rates. El Segundo was a low tax City in 1978 and our rate was set very low. The legislature did eventually adjust
the share for no and low property tax cities but only moved the percentage to 7% and some of that share has been
reduced so we are not st 6.3%. The City Council received a report on the history of the City's property tax rate at their
July 16, 2013 meeting. If you're Interested you can review the report on the City's webslte (Under City Council
agendas /July 16 City Council meeting/Item 14).
This approach did not take Into account the changing nature of municipal revenues and the changing nature of providing
municipal services. We would like this inequity to be addressed and are researchingour options. We are told that It will
take legislation and will Involve reducing the share of taxes received by other agencies so this may be an uphill fight but
you're right about it being too important to Ignore.
Regards,
Greg Carpenter
From: DickCR] aol.com [mallto:DlckCRA &aol.com]
Sent: Thursday, November 21, 2013 8:58 PM
To: Carpenter, Greg
Cc: Fisher, Bill (Mayor); Jacobson, Carl (Mayor Pro Tem); Fuentes, Suzanne (Mayor Pro Tem);
r ; ' ; Easy Reader 1
Subject: El Segundo's Property Tax Share - Easy Reader 11/21/2013
Dear Mr. Carpenter:
I am very puzzled with respect to El Segundo's meager share of our commercial & residental property tax dollar ($.06 Vs
$A 1 for the South Bay average and, as much as $.15 for Manhattan Beach), In Mark McDermott's article in today's Easy
Reader you attribute this huge percentage differential on the "freezing" of El Segundo's then unusually low property tax
rates by the 1978 CA Proposition 13. However, that, in itself, in no way explains the much lower percentage of our
property tax revenue accruing to El Segundo. Each penny per dollar of property tax revenue represents - one million
dollars of revenue to our city. Consequently, if El Segundo were afforded the average South Bay rate of $.11, our
projected budget shortfall would be eliminated without benefit of additional tax revenues[
104
I do not understand the formula which renders rzI Segundo's share of our property tax revenues so shamefully
substandard. Please explain this unbalanced distribution in quantitative terms. The subject article asserts that a
modiitoation in CA State lawlregulatlons would be necessary to realize an equitable property tax share accruing to F-I
Segundo, Even If so, I suggest El Segundo vigorously pursue this avenue for fiscal reliefl The potential monetary benefit
to our city Is clearly too overwhelming to simply Ignore. Please advise.
C. Richard Johnson
1221 E. Oak Avenue
El Segundo, OA 90245
105
Shilling, Mona
From:
sctippy @aol.com
Sent:
Friday, November 22, 2013 3:57 PM
To:
*ALL CITY COUNCIL
Cc:
leelelandsh @gmail.com
Subject:
Re: UUT taxes and the fairness issue on local residents
I am not sure why Deborah's email did not come through before, but so you know, this response does address the point
being raised. The cosmetic technical definition of a fee vs. a tax is not an issue or at question. (North Carolina clearly
saw through this technicality (i.e. a distinction without a difference) when they passed state law making sure both cable
and satellite customers paid the exact same total % of the combined FF /taxes on video revenue.)
The real issue being raised is that the land line video subscribing citizens of El Segundo, in substance, will be writing out a
larger check to cover an even greater proportion of the cost of city services (i.e. providing a larger subsidy to their
neighbors) who receive video through a company that neither collects nor remits revenue /taxes back to the city of El
Segundo.
This approach makes an unfair situation even more unfair. That is what I am asking the city council to consider before
taking action to increase the present disparity.
Sorry for the additional clarification, but after reading the response, I was concerned that others may have misunderstood
the point that I am trying to shed light on.
Respectfully,
Lee
From: Cullen, Deborah tmailto:DCullenaelsegundo.orgl
Sent: Thursday, November 21, 2013 5:04 PM
To: sctiPPyd—)aol.com
Cc: *ALL CITY COUNCIL; Carpenter, Greg
Subject: RE: UUT taxes and the fairness issue on local residents
I am responding on behalf of the City Manager and City Council to you email below.
The City imposes Franchise Fees on gas, electric and cable television for the use City streets and pipelines. If the City
were to propose a tax measure for residential Utility User Tax (UUT) and that measure passed the utilities would collect
the tax from their customers and remit the tax to the City. The utility would not be paying a UUT.
Please let me know if you have any additional questions.
Deborah Cullen
Director of Finance
City of El Segundo
- - - -- Original Message---- -
From: sctippy <sctippy @aol.com>
To: allcouncil <allcouncil @elsegundo.org>
Sent: Thu, Nov 21, 2013 11:13 am
Subject: UUT taxes and the fairness issue on local residents
106
I read the El Segundo this morning on page 6 (10/12/13) edition re UUT taxes. UUT taxes are passed on to local
subscribers e.g. video subscribers for Time Warne Cable, Verizon & AT &T. Directv /Dish residents do pay UUT. This is
the case already with franchise fees as well. (Other states do not double "tax" video customers.)
Landline cable customers do not use any more of the city services than satellite customers. The Minnesota Star Tribune
reported that already 98% of franchise fees redounded (on a net basis above the cost of incremental cost to "manage the
rights of way ") as going into city general fund.
I do hope the city council considers the fairness of a double "taxation" of customers getting video through a
landline. Increasing their costs, beyond the fairness issue, just shifts more customers to a long term service where the
city gets neither franchise fees, nor UUT. (You sort of kill the golden goose that lays the egg, so to speak.)
As a long term El Segundo resident, I thought you should understand the various situation this causes. I am sure the
folks at Time Warner, AT &T of Verizon could provide enlightenment as well.
Do you think it is fair for landline video customers to be "double taxed" to pay for more general services while satellite
customers have neither tax/fee passed through?
Thanks for thinking this disparity through.
310 -848 -3033
107
Shilling, Mona
From:
sctippy @aol.com
Sent:
Friday, November 22, 2013 11:29 AM
To:
*ALL CITY COUNCIL
Subject:
Re: UUT taxes and the fairness issue on local residents
I haven't heard anything back from any city council members, but here are some more thoughts. (BTW, I am a former
Ernst & Young auditor, CPA with 30 years of Telecom experience in multiple cities and states.)
In general fees are supposed to bear some connection to cost. (There are some excellent references to this on the web
to this point.) Franchise Fees have already blown way past this and UUT just adds to the incremental revenue financed
by land based Telecom subscribers. (You can say FF is not financed by these subscribers, but that is a form over
substance position. Where do Telecom companies get their fees to send to the city? Of course, it is directly added to the
customer bill at the same rate and on the basis as it is being assessed and it is definitely financed by those
customers.) So my comments are in the context of "Let's keep it real ", not a phony position, which is hard to say with a
straight face, about how cable customers don't really pay the franchise fees (or a UUT) to the city.
Increasing Telecom fees /taxes (be it FF or UUT Telecom) just increases the bottom line total bill customer cost for folks
who don't use any more city services than satellite customers use. I have not heard whether any of you think that is fair,
but obviously it just pushes that many more customers to subscribe a service (satellite) where the city gets
nothing. (BTW, that also means fewer viewers of the local ES community channels.)
I do think it would be good if we can get to place North Carolina is. They were astute enough to know there is not a
connection between FF and cost to manage rights of way. They ended up passing a law where satellite and cable
(AT &T, Verizon, TWC) and their customers are charged the exact same rate FF's. California is already to the extreme of
one side of the disparity, North Carolina is the extreme (100% equality) to the other side after the law held up to all legal
challenges brought by the satellite companies.
The brilliance of North Carolina's substance over form law is that no matter where customers migrate, the combined
state /local city government gets the same revenue for same revenue customer spend.
El Segundo appears to be poised to, in effect, have its land based video residents have pay for an even greater mix of city
services, on a per customer basis, than their next door neighbors that have a dish, which contributes zero revenue to the
city.
If El Segundo wants to be fair to all of its citizens, it may want to consider excluding Telecom video from its UUT
expansion plan.
Lee
310 - 648 -8151 (land)
310 - 848 -3033 (cell)
- - - -- Original Message---- -
From: sctippy <sctippy @aol.com>
To: allcouncil <allcouncil @elsegundo.org>
Sent: Thu, Nov 21, 2013 11:13 am
Subject: UUT taxes and the fairness issue on local residents
I read the El Segundo this morning on page 6 (10/12113) edition re UUT taxes. UUT taxes are passed on to local
subscribers e.g. video subscribers for Time Warne Cable, Verizon & AT &T. Directv /Dish residents do pay UUT. This is
the case already with franchise fees as well. (Other states do not double "tax" video customers.)
Landline cable customers do not use any more of the city services than satellite customers. The Minnesota Star Tribune
reported that already 98% of franchise fees redounded (on a net basis above the cost of incremental cost to "manage the
rights of way ") as going into city general fund.
1:
I do hope the city council considers the fairness of a double "taxation" of customers getting video through a
landline. Increasing their costs, beyond the fairness issue, just shifts more customers to a long term service where the
city gets neither franchise fees, nor UUT. (You sort of kill the golden goose that lays the egg, so to speak.)
As a long term El Segundo resident, I thought you should understand the various situation this causes. I am sure the
folks at Time Warner, AT&T of Verizon could provide enlightenment as well.
Do you think It is fair for landline video customers to be "double taxed" to pay for more general services while satellite
customers have neither taxifee passed through?
Thanks for thinking this disparity through.
31 "46 -3033
109
Domann, Cath
From: Cullen, Deborah
Sent: Thursday, November 21, 2013 5:04 PM
To: sctippy @aol.com
Cc: *ALL CITY COUNCIL; Carpenter, Greg
Subject: RE: UUT taxes and the fairness issue on local residents
I am responding on behalf of the City Manager and City Council to you email below.
The City imposes Franchise Fees on gas, electric and cable television for the use City streets and pipelines. If
the City were to propose a tax measure for residential Utility User Tax (UUT) and that measure passed the
utilities would collect the tax from their customers and remit the tax to the City. The utility would not be
paying a UUT,
Please let me know if you have any additional questions.
VevcrcavCuV.1ew
V we< for Of Faumc&
CLty of ELSe UM&
From: sctippy aol.com fmaIIto:s 1ppy0aol.coml
Sent: Thursday, November 21, 2013 11:13 AM
To: *ALL CITY COUNCIL
Subject: UUT taxes and the fairness issue on local residents
I read the El Segundo this morning on page 6 (10/12/13) edition re UUT taxes. UUT taxes are passed on to local
subscribers e.g. video subscribers for Time Warne Cable, Verizon & AT &T. Directv /Dish residents do pay UUT. This is
the case already with franchise fees as well. (Other states do not double "tax" video customers.)
Landline cable customers do not use any more of the city services than satellite customers. The Minnesota Star Tribune
reported that already 98% of franchise fees redounded (on a net basis above the cost of incremental cost to "manage the
rights of way ") as going into city general fund.
I do hope the city council considers the fairness of a double "taxation" of customers getting video through a
landline. Increasing their costs, beyond the fairness issue, just shifts more customers to a long term service where the
city gets neither franchise fees, nor UUT. (You sort of kill the golden goose that lays the egg, so to speak.)
As a long term El Segundo resident, I thought you should understand the various situation this causes. I am sure the
folks at Time Warner, AT &T of Verizon could provide enlightenment as well.
Do you think it is fair for landline video customers to be "double taxed" to pay for more general services while satellite
customers have neither tax/fee passed through?
Thanks for thinking this disparity through.
310- 848 -3033
110
Domann, Cathy
From:
sctippy @aol.com
Sent:
Thursday, November 21, 2013 11:13 AM
To:
*ALL CITY COUNCIL
Subject:
UUT taxes and the fairness issue on local residents
I read the El Segundo this morning on page 6 (10/12/13) edition re UUT taxes. UUT taxes are passed onto local
subscribers e.g. video subscribers for Time Warne Cable, Verizon & AT &T. Directv /Dish residents do pay UUT. This is
the case already with franchise fees as well. (Other states do not double "tax" video customers.)
Landline cable customers do not use any more of the city services than satellite customers. The Minnesota Star Tribune
reported that already 98% of franchise fees redounded (on a net basis above the cost of incremental cost to "manage the
rights of way ") as going into city general fund.
I do hope the city council considers the fairness of a double "taxation" of customers getting video through a
landline. Increasing their costs, beyond the fairness issue, just shifts more customers to a long term service where the
city gets neither franchise fees, nor U UT. (You sort of kill the golden goose that lays the egg, so to speak.)
As a long term El Segundo resident, l thought you should understand the various situation this causes. I am sure the
folks at Time Warner, AT &T of Verizon could provide enlightenment as well.
Do you think it is fair for landline video customers to be "double taxed" to pay for more general services while satellite
customers have neither tax/fee passed through?
Thanks for thinking this disparity through.
310- 848 -3033
111
Shilling, Mona
From:
Jennings, Mishia
Sent:
Monday, November 18, 2013 11 :26 AM
To:
Hensley, Mark (City Attorney); Weaver, Tracy (City Clerk); pomann, Cathy; Shilling, Mona
Subject:
Letter of Support from FS Chamber
Attachments:
doc00320120131118111353.pdf
SandyJacobs, ES Chamber hand delivered the attached for all Council and CM.
Mishia Jennings
Executive Assistant
to the City Council
310 -524 -2302
mlennings @elsegundo.org
-- - -- Original Message---- -
From: donotreply @elsegundo.org [mailto :donotreply @elsegundo.org]
Sent: Monday, November 18, 201311:14 AM
To: Jennings, Mishia
Subject:
TASKalfa 6550ci
[OO:cO:ee:88:9b:36]
112
El Segundo
TheCHAM3UI.rI\
Ve Moiee fiw Buoine,w
November 18, 2013
Honorable Councilmembers
City of El Segundo
350 Main Street
El Segundo, CA 90245
Re: Item C-.2t Qnn T� u. esdes Council Agenda
Dear Honorable Council members:
wand Delivery
The El Segundo Chamber of Commerce continues to appreciate the constructive public dialogue
that has been occurring around the issue of potentially placing a ballot measure on the April 2014
election to amend the City's tax code.
We are grateful for the public education effort that has been made by the Council and City Staff to
inform both residents and business owners of the economic issues facing our City.
We are writing today to raise our strong opposition to an item for consideration on Tuesday's
Council Agenda, the idea of an advisory ballot measure that would direct some portion of the
revenues from any proposed tax increase provided to the El Segundo Unified School District
The El Segundo business community has a long and significant history of supporting our public
schools. The El Segundo Education Foundation, which has raised millions of dollars over the years
for our schools, is funded largely by contributions from area businesses. The business community is
proud of its record of support for El Segundo public schools.
While we strongly support our schools, we believe an advisory vote to direct tax money to the
School District is poor public policy. This action would not only set a bad precedent, it would
virtually tie the City Council's hands.
The City continues to provide direct and indirect financial support of our schools valued at over $1
million annually. This significant support does not require an advisory vote to continue, it requires
a vote of the City Council. We urge you not to place an advisory ballot measure before the voters.
Sincerely,
Sandy Jacob
Chairman of the Board
cc: City Clerk Tracy Weaver
City Manager Greg Carpenter
427 Main Street a El Segundo, CA 90245 * 310.322.1220 • Fax 310.322.6880
Email: info@ elsegundochamber.org 113
Shilling, Mona
From: tleisher @gmail.com on behalf of Ty Leisher <leisher @bamproduced.com>
Sent: Thursday, September 26, 2013 8:13 AM
To: ALL ELECTED OFFICIALS
Subject: Discussing / Spreading the word on Tax Vote
Hello Council Members,
During last nights meeting Council- member Fellhauer and Atkinson brought up town hall meetings and how to
get the word out to voters regarding the vote on taxes and the open discussions.
It occurred to me that El Segundo, as a city, has very little social media presence online. I'd like to help remedy
that by helping as a social media liaison between the council and the voters online.
Twitter, Facebook and YouTube are all fantastic ways to reach people. Especially young adult demographics
who, as Mr. Atkinson put it, don't grasp the severity of our cities situation.
As a filmmaker and city employee for El Segundo TV, I am also capable of creating a video explaining the
taxes, votes and town halls that could air on the cities YouTube, Facebook, Twitter and local cable network.
Let me know if you are interested in pursuing social media as a way to hear the voices of those who can't attend
the meetings. I would be happy to come in and discuss the value of social media to anyone interested in
listening.
Pd also like to add that I am in favor of whatever it takes to get this city back to a healthy financial future,
whether that be raising taxes on property, adding a parking lot tax or turning our fire department into LA fire. I
also believe it is a great idea to charge apartment complexes or property with more than three homes on it an
additional trash tax as Council- member Fellhauer suggested.
Thank you for your time and service.
Ty Leisher
Director & Screenwriter
BAMlProduced.
310.256.8656
Bullets An Original Crime Series
114
Domann, Cathy
From: Cindy Beckett <cbevaluate @aol.com>
Sent: Sunday, October 13, 2013 12:29 PM
To: ALL ELECTED OFFICIALS
Subject: Survey for City Tax
Hello,
My name is Cindy Beckett and was just reading the survey for the upcoming meetings regarding the proposed tax
increases. I realize that was just a sample, but just as a suggestion, it maybe important to include the demographics of
who is attending the meetings and completing the surveys. Needs of young families with children, Le. those
participating in the schools long term and and community events and services may vary from those who are retired, with
no children or adult children. Seeking those differences may shed additional perspective. lust thought this might be
helpful
Thanks so much,
Cindy Beckett, M.A.
Program Support Services
(949) 633 -9696
Cbevaluate @aol.com
Sent from my Wad
115
Domann, Cathy
From: tleisher @gmail.com on behalf of Ty Leisher <leisher @bamproduced.com>
Sent: Thursday, September 26, 2013 8:13 AM
To: ALL ELECTED OFFICIALS
Subject: Discussing / Spreading the word on Tax Vote
Hello Council Members,
During last nights meeting Council- member Fellhauer and Atkinson brought up town hall meetings and how to
get the word out to voters regarding the vote on taxes and the open discussion's.
It occurred to me that El Segundo, as a city, has very little social media presence online. I'd like to help remedy
that by helping as a social media liaison between the council and the voters online.
Twitter, Facebook and YouTube are all fantastic ways to reach people. Especially young adult demographics
who, as Mr. Atkinson put it, don't grasp the severity of our cities situation.
As a filmmaker and city employee for El Segundo TV, I am also capable of creating a video explaining the
taxes, votes and town halls that could air on the cities YouTube, Facebook, Twitter and local cable network.
Let me know if you are interested in pursuing social media as a way to hear the voices of those who can't attend
the meetings. I would be happy to come in and discuss the value of social media to anyone interested in
listening.
I'd also like to add that I am in favor of whatever it takes to get this city back to a healthy financial future,
whether that be raising taxes on property, adding a parking lot tax or turning our fire department into LA fire. I
also believe it is a great idea to charge apartment complexes or property with more than three homes on it an
additional trash tax as Council - member Fellhauer suggested.
Thank you for your time and service.
Ty Leisher
Director & Screenwriter
BAMlProduced.
310.256.8656
Bullets An Original Crime Series
116