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25 Staff Report - Imposing Limits on Capital Expenditures and Terms of Office~rN N OR ~y; u tt tos` GAjas COUNCIL AGENDA REPORT DATE: JUNE 11, 2009 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER MEETING DATE: 6/15109 ITEM NO: 25 SUBJECT: PROPOSED BALLOT MEASURES IMPOSING LIMITS ON CAPITAL EXPENDITURES AND TERMS OF OFFICE A. DIRECT STAFF REGARDING PREPARATION AND DISTRIBUTION OF INFORMATIONAL MATERLkLS; AND, B. ADOPT RESOLUTION OPPOSING THE PROPOSED BALLOT MEASURE(S) RECOMMENDATION: 1. Review the attached fact sheet, on the proposed ballot measures currently in circulation and provide direction regarding the dissemination of this information; and 2. Direct staff to conduct the research necessary to provide additional public information on the impacts of one or both potential measures should they appear on a future ballot before the registered voters of Los Gatos; and 3. Adopt the draft resolution attached stating an official Town position on one or both proposed ballot measures currently in circulation. BACKGROUND: Two proposed ballot measures have been filed with the Office of the Town Clerk and are currently being circulated by petition to obtain the 1,871 valid signatures required to place them on an election ballot. The first imposes limitations on the expenditure of public funds for capital facilities and projects and the second imposes term limits on Council Members. If sufficient valid signatures are submitted for PREPARED BY: GREG LARSON Town Manager GL:pg NAIMGR\AdminWorkFiles12009 Council Repoits%-15-09 Proposed Ballot Measures.doe n Reviewed by: Clerk Administrator Town Manager Town Attorney -Finance Community Development PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ACTIONS RELATED TO BALLOT MEASURES IN CIRCULATION June 11, 2009 either or both measures by the end of June, then the measure(s) may appear on the November ballot. Otherwise, sufficient valid signatures would have to be submitted by mid-August to appear on the June, 2010 ballot, or earlier if so determined by the Council. Note that if 2,807 or more valid signatures are submitted, than a special election may have to be called. Numerous concerns and complaints have been raised by opponents and proponents of the proposed ballot measures privately, publicly and through the media. Consequently, staff has been asked to provide factual information regarding the ballot measures and their potential impact on the Town. DISCUSSION: Attached is a fact sheet that has been prepared based on the limited information currently available. Further research will be required for a more thorough analysis of the proposed measures if the proponents obtain the number of valid signatures needed to place the measures on an upcoming voter ballot. The Council may review and modify the fact sheets and provide direction to staff on their dissemination. Also attached is a dram resolution for Council consideration to take an official Town position against one or both potential ballot measures. This is the only official Town action permissible in support or opposition to any specific ballot measure. Otherwise, the Town's involvement is limited to providing information and analysis regarding the impacts of the potential measures on the Town. Last, questions have been raised about inappropriate campaign behavior. Any claims of misleading or illegal behavior related to the potential ballot measures should be reported to the Police Department which will refer the matters to the District Attorney for review, investigation and prosecution, if warranted. Anyone who wants to remove their name from a signed petition must contact the Town Clerk's Office to do so in writing prior to the submission of that petition. ENVIRONMENTAL ASSESSMENT: Is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: None. Attachments: 1. Proposed Ballot Measures Fact Sheet 2. Resolution stating an official Town position on one or both proposed ballot measures FACT SHEET Los Gatos Capital Financing Ballot Measure The only project in the Town's Adopted Five Year Capital Improvement Program which might be impacted by this measure is the new Town Library. 2. Town staff does not know of any other municipality in California that would have a similar restriction on all proposed capital projects over a fixed dollar amount. 3. Potential delays to the new Town Library project caused by this measure going to the ballot could be up to 12 months. A delay in construction could increase the total cost of the Library project. A I% increase in construction costs would amount to over $100 k. 4. If the financing of the library is extended beyond 2011, Town Redevelopment Agency net revenue would be reduced by approximately $50 k per year and the financing for the Library project would be reduced by approximately $600 k. Los Gatos Term Limits Ballot Measure 5. Of the 45 Town Council members serving since adoption of the Town's current form of government in 1953: a. 23 have served all or part of one term (51.1 b. 11 have served all or part of two terms (24.4 c. 10 have served all or part of three terms (22.2 d. Only 1 has served 4 terms (2.2 6. 11 Council members would have been restricted by this ballot measure 34 Council members would not have been restricted by this ballot measure 7. In 2002, a report issued by the Public Policy Institute of California estimated that less than 1 out of 5 California cities have Council teen limits. Election Costs (based on estimates from the Registrar of Voters) S. Total election costs for the two ballot measures and a Library project approval measure, if required, could be as much as $172,000 (or more if a special election). The actual costs will vary based on the number of ballot measures, the timing of the election(s) and pro-rated printing costs. 9. The election costs for these possible ballot measures are not included in the Town's adopted budget and would require a reallocation of Town resources or the use of designated reserves. ATTACHMENT 1 No text RESOLUTION NO. RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS OPPOSING PROPOSED BALLOT MEASURES IMPOSING LIMITS ON CAPITAL EXPENDITURES AND COUNCIL TERMS OF OFFICE WHEREAS, a proposed ballot measure to impose limits on Town capital projects has been submitted and is in circulation for the number of signatures required to place it on an upcoming ballot; and WHEREAS, another proposed ballot measure to impose limits on the terms of office for elected Council members has been submitted and is in circulation for the number of valid signatures required to place it on an upcoming ballot; and WHEREAS, the Town Council has considered the facts and impacts of the proposed ballot measure(s); NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF LOS GATOS that we hereby express strong opposition to the proposed ballot measure(s); and RESOLVED FURTHER, that we authorize the opponents of the proposed ballot measure(s) to list the Town of Los Gatos as an official opponent of the proposed ballot measure(s). PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of the Town of Los Gatos, California, held on the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: day of , 2009 by the MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA NAMGR\AdminWorkFiles12009 Council Repoitsl6-15-09 Ballot Measure Resolution.doc ATTACHMENT 2