2020-007 - Calling the Election for the Town Finance Commission InitiativeRESOLUTION 2020-007
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
CALLING AND GIVING NOTICE OF A MUNICIPAL ELECTION
TO BE HELD NOVEMBER 3, 2020 FOR THE SUBMISSION TO THE VOTERS
OF AN INITIATIVE AMENDING THE TOWN CODE
TO ESTABLISH A TOWN FINANCE COMMISSION
WHEREAS, on October 7, 2019, a Notice of Intent to Circulate a Petition titled "A
Citizens Initiative Measure Amending the Town Code to establish a Town Finance Commission
(the "Initiative") was filed with the Town's Elections Official with a request that a title and
summary be prepared for the measure; and
WHEREAS, the Town Attorney provided a title and summary for the proposed Initiative
to the proponents; and
WHEREAS, the petitions regarding the Initiative were filed with the Elections Official on
January 16, 2020 bearing unverified signatures; and
WHEREAS, to qualify for the November 3, 2020, ballot, proponents were required to
obtain signatures of ten percent (10%) of the registered voters of the Town; and
WHEREAS, the Town Clerk and Town Attorney have found that the petition's form
complies with the Elections Code; and
WHEREAS, the County Elections Division has examined the records of voter registration
and has certified that the Petition is signed by the requisite number of voters to qualify for the
election; and
WHEREAS, the Town Council wishes to consolidate the Municipal Election with the
Statewide Election to be held on November 3, 2020, and that the precincts, polling places, and
elections officers of the two elections be the same within the Town; and that the Santa Clara
County Elections Department canvass the returns of the Municipal Election, and that the
elections be held in all respects as if one election.
NOW, THEREFORE, BE IT RESOLVED, that the Town Council of the Town of Los Gatos
does Declare, Determine, and Order as Follows:
SECTION 1. Pursuant to the laws of the State of California relating to general law cities there is
called and ordered to be held in the Town of Los Gatos, California, on Tuesday, November 3,
2020, a Municipal Election.
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Resolution 2020-007 March 3, 2020
SECTION 2. Pursuant to Elections Code § 9214, subdivision (b) and § 1405, subdivision (a)(1),
the Town Council hereby orders the Initiative to be placed on the ballot without alteration and
does order the following question submitted to the voters at the Special Municipal Election:
"Shall the measure proposing an ordinance
replacing the Town's current Finance Committee YES
and Sales Tax Oversight Committee with a
Finance Commission that would advise the Town
Council on financial, budgetary and investment NO
matters, including but not limited to, the Annual
Budget, the Comprehensive Annual Financial
Report, capital expenditures, sales tax revenue
and expenditures, and other recommendations
as the Town Council directs, be adopted?"
SECTION 3. The text of the ballot measure, without its exhibits, is attached to this resolution as
Exhibit A. The text of the measure, without its exhibits, shall be printed in the ballot materials;
copies of the exhibits to the measure shall be available for public inspection in the Town Clerk's
office and on the Town's website at www.losgatosca.gov/
SECTION 4. The Town Council directs the Town Clerk to transmit a copy of the measure to the
Town Attorney and directs the Town Attorney to prepare an impartial analysis of the measure
pursuant to Elections Code § 9280.
SECTION 5. Arguments in favor of or against the measure shall be submitted to the Town Clerk
on or before August 4, 2020 by 5:00 p.m. under Elections Code section 9286 et seq. If the Town
Clerk receives more than one argument for and/or against, the priorities established by
Elections Code section 9287 shall control.
SECTION 6. Rebuttal arguments shall be controlled by the provisions of Elections Code section
9285. The deadline for filing rebuttal arguments shall be August 11, 2020, by 5:00 p.m.
SECTION 7. The initiative measure shall pass only if a majority of the votes cast by voters voting
on the measure are "yes" votes.
SECTION 8. Pursuant to Elections Code commencing with Section 10400, the Town Council
hereby requests the Board of Supervisors of the County of Santa Clara to order the
consolidation of the general municipal election to be conducted within the boundaries of the
Town of Los Gatos on November 3, 2020, with respect to which the Board of Supervisors of the
County of Santa Clara has the power to order a consolidation. The Town Council further
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Resolution 2020-007 March 3, 2020
consents to and orders the consolidation of the general municipal election hereby called with
the statewide general election and acknowledges that the consolidated election will be held
and conducted in the manner prescribed in Section 10418.
SECTION 9. The Town Clerk is hereby authorized and directed to publish a notice of the general
municipal election within the time and in the manner specified in the Elections Code Section
12112. The Town Clerk is further authorized and directed to do all other things required by law
to hold the general municipal election above provided.
SECTION 10. The Town Clerk is hereby authorized and directed to certify to the adoption of this
resolution and to transmit a certified copy to the Board of Supervisors of the County of Santa
Clara and to the Registrar of Voters of the County of Santa Clara.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos this 3rd day of March 2020 by the following vote:
COUNCIL MEMBERS:
AYES: Marico Sayoc, Barbara Spector, Mayor Marcia Jensen
NAYS: Rob Rennie
ABSENT: None
ABSTAINED: None
SIGNED:
j/ lZ x
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE:
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: 3 bo2�
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Resolution 2020-007 March 3, 2020
•d: M .A A�
SEP 18 2019
LOS GATOS TOWN FINANCE COMMISSION INITIATIVE
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BE IT ORDAINED by the People of the Town of Los Gatos as follows:
Section 1. Title.
This measure shall be ]mown and may be referred to as the "Town Finance
Commission Initiative."
Section 2. Findings and Declarations.
WHEREAS, the Town's financial well-being is essential to ensuring that the
Town can effectively provide services and fund all liabilities; and
WHEREAS, many residents of the Town possess substantial financial
management experience and are eager to serve their community; and
WHEREAS, a Finance Commission consisting of qualified Town residents can
help ensure the financial well-being of the Town and promote greater public
understanding of Town financial matters; and
WHEREAS, a Finance Commission can increase citizen participation in Town
governance and encourage greater resident engagement in Town financial decisions; and
WHEREAS, the People of Los Gatos wish to establish a Finance Commission to
assist the Town Council in ensuring the financial well-being of the Town; and
WHEREAS, the People of Los Gatos do not wish to interfere with the budgetary
authority or processes of the Town Council, but instead believe a Finance Commission
can function as an advisory body and provide important guidance to the Town Council in
carrying out its budgetary duties and establishing the Town's fiscal policies and
priorities.
NOW, THEREFORE, the People of the Town of Los Gatos do hereby amend the
Los Gatos Town Code as follows:
Section 3. Amendment to the Los Gatos Town Code.
(New language is indicated by underlining, and
deleted language is indicated by s&&egh.)
1) A new Division is added to Article V of Chapter 2 of the Los Gatos Town
Code to read in its entirety as follows:
EXHIBIT A
Division 3. — Finance Commission.
Sec. 2.50.200. —Finance Commission established.
(a) The Finance Commission shall be established to serve in an advisory
capacity to the Town Council by reviewing Town finances. including but
not limited to the annual budget. Comprehensive Annual Financial Report,
and capital expenditures, and making recommendations about the Town's
financial, budgetary and investment matters and operations related thereto
to the Town Council and any other Town department, agency, committee,
commission or other body as the Town Council directs.
(b) The Council Finance Committee is disbanded.
U The Sales Tax Oversight Committee established by section 25.60.140 of the
Town Code is disbanded and all powers and duties of that Committee are
transfeaed to the Finance Commission.
Sec. 2.50.205. — Composition, appointment, terms.
(a) The Finance Commission shall consist of five (5) voting citizen members
("Citizen Appointees") and two (2) non -voting Council Liaisons.
(b) Council Liaisons.
The Town Council shall appoint two Town Council members as
non -voting Council Liaisons.
The Council Liaisons shall serve on the Finance Commission until
replaced by the Town Council but shall not serve beyond their terms
on the Town Council.
One Council Liaison shall be the Mayor or Vice -Mayor of the Town.
Oc Citizen Appointees.
Except with respect to initial appointments as provided for in section
2.50.205(c)(5), each member of the Town Council shall appoint one
Citizen Appointee, upon expiration of terms described in section
2.50.205(c)(4).
Citizen Appointees must be residents and registered voters of the
Town.
No member of the Town Council may serve as a Citizen Appointee.
(44,) Citizen Appointees shall serve four-year terms, which shall expire
on a staggered basis such that every year one term shall expire.
except that once every four years, two terms shall expire. The term
of each Citizen Appointee shall commence on the first day of
January (or as soon as prracticable after the effective date of this
Division for initial Citizen Appointees), and shall expire on the
thirty-first day of the fourth successive December.
[IN
As soon as practicable after the effective date of this Division, the
Anpointees such that one Citizen Appointee's term shall expire each
year for four years after the effective date of this Division, and one
additional Citizen ApI)ointee's term shall expire in the fourth year
after the effective date of this Division. Following the expiration of
each of the first five Citizen Appwintees' terms, a Citizen Appointee
shall be appointed to serve a four-year term.
Citizen Appointees must be certified public accountants, chartered
financial analysts, or have a business, finance, economics or
accounting degree, and must have at least five years of experience in
at least one of the following:
Financial experience in a corporate, business, or government
setting:
]3i) Principal or officer at a financial auditing firm:
Investment banking or
DD) Finance or budget management.
Should a Citizen Appointee resign or otherwise leave office prior to
the end of his or her term, the appointing Town Council member for
that Citizen Appointee shall, as soon as practicable, appoint anew
Citizen Appointee to serve the remainder of the term.
(d) Section 2.40.030 of the Town Code shall not apply to the Finance
Commission.
(ej Administrative support for the Finance Commission shall be provided by
the Town Manager, the Director of Finance and by other Town staff as
necessary.
Sec. 2.50.210. — Meetings and Records.
i1 The Finance Commission shall hold at least one meeting per calendar
quarter.
b� Meetings shall be held as required by the business needs of the Finance
Commission in the Town Council chamber in the Town Hall or such other
locations as allowed by the Ralph M. Brown Act, at a time that is
convenient for the Finance Commission and the public to encourage Mblic
participation.
iqi Meetings shall be subject to the Ralph M. Brown Act.
Nothing in this Division sball be construed as excluding any documents
from the California Public Records Act.
Sec. 2.50.215. — Chair.
The Finance Commission shall appoint and prescribe the tens of office for
its Chair.
N The Chair must be a Citizen Appointee.
(c) All Finance Commission meetings shall be called by the Chair.
ial The Chair shall set all Finance Commission meeting agendas.
Sec. 2.50.220. — Ouorutn.
A majority of the Citizen Appointees of the Finance Commission shall constitute a
guorum. Except as otherwise prescribed by ordinance or State law, a vote by a
majority of a quorum shall be sufficient to transact business.
Sec. 2.50.225. — Duties.
The Finance Commission shall:
Serve as an on -going, substantive and expert advisory body to the
Town and Town Council so that the Town and Town Council can
make informed decisions about the Town's financial, budgetary and
investment matters and operations related thereto.
Review the Town Manager's annual proposed budget prepared in
accordance with section 2.30.295 (6) of the Town Code, and provide
written comments and recommendations to the Town Council.
The Finance Commission's comments and recommendations
shall include a recommendation about whether the Town
Council should approve or disapprove the proposed budget.
The Finance Commission may make a recommendation of
approval of the budget conditional upon the Town Council's
acceptance of one or more of the Finance Commission's
recommendations.
B%B) The Town Manager must provide a proposed budget to the
Finance Commission at least twentv (20) business days
before the first meeting at which the proposed budget is
considered by the Town Council.
Review the Town Manager's draft Comprehensive Annual Financial
Report (CAFR) for the precedin fig scal year, and provide written
comments and recommendations to the Town Manager.
The Town Manager shall respond in writing to the Finance
Commission providing his or her rationale for accepting or
rejecting each of the Finance Commission's comments and
recommendations prior to presenting the CAFR to the Town
Council for formal consideration.
B�2 The Town Manager may not present the CAFR to the Town
Council for formal consideration unless or until he or she
considers and responds in writing to all of the Finance
Commission's comments and recommendations.
Review the Director of Finance's summary of the Town's financial
report required by section 53891 of the Califomia Government Code
and prepared in accordance with section 2.50.010(c) of the Town
Code, and provide written comments and recommendations to the
Director of Finance prior to the publishing of the summary of the
report.
U Review the financial policies and procedures manual developed in
accordance with section 2.50.010(f) of the Town Code, and provide
written comments and recommendations to the Director of Finance.
Prior to the Town's expenditure of any revenues from the tax
authorized by sections 25.60.010 et seq. of the Town Code, review
the proposed expenditures and advise the Town Council on whether
such expenditures meet the Town Council's objectives for that tax:
Maintaining and enhancing neighborhood police patrols and
local crime prevention programs;
B� Improving traffic flow to reduce congestion:
Repairing potholes and maintaining the Town's streets, roads,
and sidewalks: and
(D) Maintaining the Town's long-term financial stability.
Issue an annual public report of the expenditures and appropriations
of sales tax revenues approved by the Town Council during each
fiscal year.
U Make recommendations to the Town Council about policies and
progFams:
To maximize the Town's revenues consistent with existing
taxation structures and inter -governmental funding
opportunities;
B� To maximize fee generation consistent with market rate
charges for Town -provided services and market rate fees for
utilization of Town -owned assets;
(C� To minimize the Citv's cost to provide core services and
required activities, consistent with the desired service level
for residents and other internal and external customers:
DD) To set funding goals for reserves, and review on -going
progress related thereto;
0
1E To assess the risk associated with the structure and
documentation of any proposed debt financing;,
FL) To fund the Town's Iona -term compensation and benefit
program liabilities in the most responsible and cost-effective
way; and
LGJ To monitor investment performance. and make
recommendations related to the Town's investment policy
and performance.
j� Provide written comments and recommendations regardin a, the
selection of auditors for the CAFR
10 Participate in pre -audit meetings with auditors, provided that the
Finance Commission shall not participate in those portions of any
meetings which pertain to confidential employment or attornev-
client privileged matters.
11 Review and monitor any events or issues which may affect the
financial status of the Town.
bb) The duties of the Finance Commission shall not be altered, abridged or
abrogated in any way by any body except by a vote of the majority of the
voters of the Town.
(c) The Town Council shall make changes to the budgetary and all other Town
processes and calendars as necessary to allow for consideration of the
comments and recommendations of the Finance Commission outlined
herein.
Sec. 2.50.230. — Conflicting Provisions.
Should any provision of this Division be found to conflict with the Los Gatos
Town Code, this Division shall prevail, consistent with the purposes of the
Finance Commission as set forth herein.
2) Section 25.60.140 of the Los Gatos Town Code is hereby amended as
follows:
Sec. 25.60.140. - Citizens' oversight and annual audit.
(a) There shall be a commit4ee appeiated by the Town Couneil to The Finance
Commission established by sections 2.50.200 et seg. of the Town Code
shall review and report on the receipt of revenue and expenditure of funds
from the tax authorized by this chapter ("revenues and expenditures" ).fie
number-, q"ifieafiens and duties of Commigee members slWl be
established by or-dinanee or resolu6en of the Town Couneil.
(b) Beginning with the fiscal year that ends June 30, 2019, the Town's
independent auditors shall, as part of their annual audit of the Town's
financial statements, review the collection and expenditure of revenue from
the tax authorized by this chapter. The auditors' review shall be a public
document. The Finance Commission eomavttee shall annually review the
auditors' findings and report in writing to the Town Council regarding the
auditors' findings regarding the revenues and expenditures. The Finance
Commission's eenimWec s statement shall be transmitted to the Town
Council for consideration at a public meeting.
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NOW I
Section 4. Earliest Possible Election.
The People of Los Gatos hereby expressly request that, if not adopted by the Town
Council, this measure be submitted to the voters of Los Gatos at a regular or special
election at the earliest time allowable by law.
Section 5. Severability.
Should any provision of this measure, or its application to any person or
circumstance, be determined by a court of competent jurisdiction to be unlawful,
unenforceable, or otherwise void, voidable, or invalid, that determination shall have no
effect on any other provision, or the application of this measure to any other person or
circumstance and, to that end, the provisions hereof are severable. By approving this
measure, the voters express their intent that each section and subsection would have been
adopted irrespective of whether any one or more sections or subsections are found to be
invalid or unconstitutional, and that each section and subsection is therefore explicitly
severable, part -by -part, phrase -by -phrase, and word -by -word, and that if any portion is
determined by a court of competent jurisdiction to be unlawful, unenforceable, or
otherwise void, voidable, or invalid, that the least amount of language be severed from
the ordinance. When possible, if any duty granted to the Finance Commission by this
measure is found to conflict with powers specifically granted to the Town Council by the
Legislature, or found to be otherwise unlawful, the offending section or subsection shall
be amended or interpreted to allow the Finance Commission the maximum allowable
duties under the law.
Section 6. Competing Initiatives/Measures.
This measure is intended to be comprehensive. It is the intent of the People of Los
Gatos that, in the event this measure and one or more measures relating to the same
subject shall appear on the same ballot, the provisions of the other measure or measures
shall be deemed in conflict with this measure. In the event that this measure receives a
greater number of affirmative votes, the provisions of this measure shall prevail in their
entirety, and all provisions of the other measure or measures shall be null and void. If
this measure is approved by a majority of the voters but does not receive a greater
number of affirmative votes than any other measure or measures appearing on the same
ballot regarding the same subject, then this measure shall take effect to the extent not in
conflict with said other measure or measures.
Section 7. Effective Date.
This measure shall be considered adopted and become effective upon the date of
the election which it was approved by the voters.
Section 8. Liberal Construction.
This measure is an exercise of the initiative power of the People of Los Gatos
regarding the establishment of a Finance Commission and shall be liberally construed to
effectuate its purposes.
Section 9. Legal Defense.
The People of Los Gatos desire that this measure, if approved by a simple majority
of voters and thereafter challenged in court, be defended by the Town of Los Gatos. The
People of Los Gatos, by approving this measure by a simple majority of voters, hereby
declare that the proponent(s) of this measure have a direct and personal stake in
defending this measure from constitutional or statutory challenges to the measure's
validity or implementation. In the event the Town fails to defend this measure, or the
Town fails to appeal an adverse judgment against the constitutionality, statutory
permissibility or implementation of this measure, in whole or in part, in any court of law,
the measure's proponent(s) or the voters the Town of Los Gatos shall be entitled to assert
his, her or their direct personal stake by defending the measure's validity and
implementation in any court of law and shall be empowered by the People through this
measure to act as agents of the People of Los Gatos, and the Town of Los Gatos shall
indemnify the proponent(s) for reasonable expenses and other losses incurred by the
proponent(s), as agent(s), in defending the validity and/or implementation of the
challenged measure. The rate of indemnification shall be no more than the amount it
would cost the Town to perform the defense itself.
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