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Attachment 2Town Council Ad Eoc Citi?rn ComD,ittce Maico Sayoc, Vice Mayar Steve Leonardk, Council Member lze Fago1 Resident Mo rk Rohinson, Res id en t Jak Yan Nada, Resident SPECIAL MEETING TOWN OF LOS GATOS TOWN COUNCIL AD HOC CITIZEN COMMITTEE AGENDA TOWN COUNCIL CHAMBERS IIO EAST MAIN STR.EET February 23,2016- l:00 P.M. MEETING CALLED TO ORDER ROLL CALL VERBAL COMMUNICATIONS (Three minure ime timir) l. Approve the February I 8, 2016 Ad Hoc Committee Draft Minutes 2. Discuss lnformation Contained in the StaffRepon 3. Discuss and Make Recommendations to council Regarding potential Ballot Measur{s) ADJOURNMENT Attachrnents: l. February 18,2016 Ad Hoc Committee Draft Minutes (ltem l)2. Staff Report (Item 2) Post lalso posted on Tou.n lleb) Town Council In compliance with tbe Americans with Disabilities Act, ifyou need special assisrance to participate in this meeting,please contact the Torvn Manager's oflice at (408) 354-6834. Notification 48 houn before the meeting will enable theTown to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 035.lOi-:S.fO+1 ATTACHMENT 2 MEETTNG DArE:O212!ltG ITEM NO: 1 DRAFT TOWN OF LOS GATOS AD HOC CITIZEN COMMITTEE February 18,2016, 1:00 p.m. 110 E. Main Street Town Council Chambers Los Gatos, California MINUTES Call to Order The Ad Hoc Citizen Committee meeting was called to order at 1:00 p.m. Members and Staff present: Vice Mayor Marico Sayoc Council Member Steve Leonardis Lee Fagot, Resident Mark Robinson, Resident Jak Van Nada, Resident Rob Schultz, Town Attorney Jennifer Callaway, Assistant Town Manager Stephen Conaway, Finance Director Matt Morley, Parks and Public Works Director Gitta Ungvari, Administrative Analyst Christina Gilmore, Assistant to the Town Manager Verbal Communications An8elia Doerner spoke in opposition of a User Utility Tax (UUT) and in favor of increasing the Transient Occupancy Tax (TOT) to 13yo and placing the tax measure on the November 2016 ballot. Ms. Doerner also expressed concern about the results of the Police Cost Analysis report and the costs of maintaining roads due to the numerous trips waste and recycling companies make as part of their service delivery in Los Gatos neighborhoods. Agenda ltems 1. Approve the February 4, 2016 Ad Hoc Committee Draft Minutes The Committee unanimously approved the draft minutes with no changes. February 18, 2016 Minutes Town Council Ad Hoc Citizen Committee Page I 2. Discuss lnformation Contained in the Staff Report The Committee reviewed and discussed the information contained in the staff report and made the following motion in regards to a TOT ballot initiative: MOTION: Motion by Council Member Leonardis to submit a recommendation to the Town Council to place on the November 2016 ballot, a tax measure initiative to increase the Transient Occupancy Tax (TOT) by 2% for a total of 12%. Seconded by Committee Member Robinson. VOTE: Motion passed 3-2, with Vice Mayor Sayoc and Committee Member VanNada voting in opposition to the motion, stating they support a recommendation to increase the Transient Occupancy Tax (TOT) by 3% for a total of 13%. The Committee discussed the pros and cons for placing a UUT ballot initiative on the November 2016 or November 2018 general election ballots. The Committee expressed an interest in exploring draft language for a future UUT ballot initiative that would include the following: . The proposed UUT tax would be a general tax . The proposed UUT tax uses would be worded in general terms so that it could be used for infrastructure and/or capital improvement projects . A Town Council appointed oversiBht committee would be formed to monitor the use of funds for infrastructure and/or capital improvement projects . The proposed UUTtax could be up to 5% and divided in 1% increments overthe following utilities: o Phone/Mobile Phone o Electricity o Gas o Water o Cable Television 3. Review of Ad Hoc Otizen Committee Timeline and llext Steps The committee requested staff to return at the February 22,2016 Ad Hoc citizen committee meeting with the following information for review and discussion: . Draft language for both a TOT and UUT ballot initiativeo Recommendations for a political consulting firm that ancludes: o Estimated consultant costs o Proposed timeline for placing an initiative on the November 2016 and November 2018 ballots. Adjourned at 2:21 p.m. February 18, 2016 Minutes Town Council Ad Hoc Citizen Committee Page 2 MEETING DATEI02t23ll6 ITEITI NO: 2 AD HOC CITIZEN COMMITTEE REPORT DATE: TO: FROM: SUBJECT: PREPARED BY:STE Findic tor CHRISTINAGILMO@ Assistant to the Town Manager FEBRUARY 22,2016 AD HOC CITIZENS COMMIT'TEE LAUREL PREVETTT. TOWN MANAGERI /l,LL2, REVIEW AND DISCUSS DRAFT BALLOT LANGUAGE, POLITICAL CONSULTANT RECOMMENDATONS, PROPOSED COSTS, AND TIMELINE FOR A UTILITY USER TAX (UUT) AND TRANSIENT OCCUPANCY TAX (TOT) BALLOT INITIATIVES RECOMMENDATION: Discuss the information contained in the staff report. BACKGROUND: At its February l8,2016 me€ting, the Ad Hoc Citizen Committee asked staff to return with information that included draft ballot language, political consultant recommendations, proposed cosrs, and a proposed ballot initiative timeline in its continued discussion of a TOT or UUT ballot measure. DISCUSSION: Staffis providing sample language for the Committee to consider in its continued discussion of a TOT or UUT ballot measure. The samples given below were taken from other ballot initiatives and are being provided as a starting point for the Committee to begin drafting language specific for the Town of Los Galos's needs. Transient Occupancy Tax Option I : "To provide funding that cannot be taken away by the State for general fund infrastructure and Town services such as pedestrian and bike improvements including safe routes to school, streets, sidewalks. AY Reviewed by:Assistant to*n U^ug", l'bLtnn Atromey U. Finance N: CR\Adminwor*fil€scoucil Cornmince .a]q HOC CnZfl,fehilarv::.2OtOrrum: e,a Hrr CommiliJotf ncoon 0:::]tO-.oa paths. and bridges; and maintaining parks and facilities. shall the Town ofLos Gatos increase PAGE 2 AD HOC CITIZENS COMMITTEE SUBJECT: REVIEW AND DISCUSS DRAFT BALLOT LANGUAGE, POLITICAL CONSULTANT RECOMMENDATIONS, PROPOSED COSTS, AND TIMELINE FOR A UTILITY USER TAX (UUT), AND TRANSIENT OCCUPANCY TAX (TOT) BALLOT INITIATIVES FEBRUARY 22.2O16 DISCUSSION (cont'd): the hoteVmotel tax by two percentage points and update language to confirm equal treatment oftraditional and online bookings?" Option 2: "Shall the Town oflos Catos increase the transient occupancy tax (co[unonly known as the "hotel bed tax"), which is charged only to persons who occupy hotel or motel rooms within the Town for 30 days or less, from the current l0 to 12 percent?" Option 3: "Shall the Town of [,os Gatos Municipal Code be amended to increase the transient occupancy tax (TOT) paid solely by hotel and motel visitors from l0 percent to 12 percent to be used for general govemmental purposes?" Option 4: "In order to protect the quality of life in the Town of Los Gatos by supporting efforts to createjobs for local residents; investing in a vibrant local economy; and supporting police, fire, parks and recreation, and other essential city services, shall the Town ofLos Gatos be authorized to augment the Town's Generat Fund by levying an additional tax oftwo percent in the Transient Occupancy Tax on people stalng at local hotels and motels?" Option 5: "Shall the Town of [,os Gatos Municipal Code be amended to increase the transient occupancy ta\, commonly called the "hotel tax," which is charged only on persons who occupy hotel rooms in the Town for 30 days or less, from l0 percent to 12 percent in order to contribute funding towards basic Town services such as police, stre€t repair, park maintenance. and community programs?" Utility User Tax Option I : "To help ensure that the Town of Los Gatos has the funds necessary to support the quality of life its residents have come to expect through such essential services as adequate law enforcement, and the maintenance and repair oflocal streets and public facilities shall the Town place a _ percent ( o/o) Utility Users Tax on all electricity and gas usage in the Town, beginning March l, 2017. and automatically terminating five years later?" PAGE 3 AD HOC CITZENS COMMITTEE SUBJECT: REVIEW AND DISCUSS DRAFT BALLOT LANGUAGE, POLITICAL CONSULTANT RECOMMENDATIONS, PROPOSED COSTS, AND TIMELINE FOR A UTILITY USER TAX (UUT), AND TRANSIENT OCCUPANCY TAX (TOT) BALLOT INITIATIVES FEBRUARY 22,2O16 DISCUSSION (cont.d): Option 2: "To help protect local funding for general Town services such as public safety, shall the Town ofLos Gatos establish a _ percent general utility users' tax. with low-income exemptions, subject to mandatory annual audits, all funds stalng local, and to be reviewed by the Town Council every two years and terminated iffindings are not made that the tax is necessary for the Town's financial health?" Option 3: To create local firnding fbr local needst maintain Los Gatos' independent. local Police Department; prevent fudher cuts to polic€ officers, 9l I response. violent/property crimes investigation; maintain storm drains, pothole/street repair, local business support, and other City services; shall the Town of los catos establish a utility user tax at a _ rate for _ years with low-income senior exernptions, citizens' oversight, and annual indep€ndent audits? Political Consultant Recommendations, Estimated Costs, and Timeline After last week's meeting on February I 8, 2016 staff identified two consultants that could potentially provide services for the Town. Slaffhas reached out to both of these consultants but has yet to speak to either. Any information that is obtained will be shared r,l'ith the Comminee at Tuesday's meeting. CONCLUSION AND NEXT STEPS: Staffrecommends that the Committee review and discuss the information provided within the staff report and formulate a final recommendation for a TOT and/or UUT ballot measure tentatively scheduled to be presented to the Town Council on March I , 20I6. The following questions may assist the Committee with the discussion: l. Which utilities should be taxed? 2. At what rate(s) should the utilities be taxed? 3. For how long should the tax last? 4. Should the tax be a general or a special tax? Staff recommends a general tax, which has a 507o- plus-one voter threshold. COORDINATION: The preparation of this reporl was coordinated with the Finance Director, the Town Attomey, the Clerk Department, and the Town Manager's Office. February 22,2016 Assistant Town Manager Jennifer Callaway Town of Los Gatos, 110 East Main Street Los Gatos, CA 95030 Dear Assistant Town Manager Callaway: Thank you for reaching out to The Lew Edwards Group (LEG) to request information about LEG's revenue ballot measure preparation services. LEG has enacted more than $33 Billion in California revenue measures with a 95% success rate and is the California leader in enacting revenue measures for local governments throughout the State. Please note that LEG's opinion research partner is FM3 Researdu who has significant expertise in the Town of Los Gatos. LEG has a track record of 40 enacted UUT and TOT measures. Current LEG clients in Santa Clara County include the cities of Campbell, Monte Sereno, Morgan Hill, San Jose and Sunnyvale and the San Jose Evergreen Community College District, for whom LEG enacted a successful bond in 1998. LEG also enacted successful bond or revenue measures previously in Campbell, Cupertino, Gilroy, Palo Alto, San Jose, Santa Clara County Library District, Saratoga, Saratoga Fire District, Saratoga Union School District, and West Valley Mission CCD. LEG's protocol is to be retained upon initiation of revenue planrring. Estimated Consulting Fees and Project Costs Estimated costs the Town of Los Gatos can expect to incur (not including investment from a separate political committee if one is convened independent of City efforts) are as follows: LEG Consultine Fee: Pollins: I nfor m a t ional M ail in s s : $5,000/month (typically through October) $28,850 for a dual mode Intemet/Phone survey (20 minutes) The second survey if needed would cost 925,750 (15 minutes) $9,000 per mailing - our successful cities implement 3-5 mailings I enioyed leaming more about the Town's needs today and hope that you find the aftached timeline and sample materials helpfirl. Warmly, Catherine Leu, Esq. PresidenVCEO catherine@lewedwards group.com (510)5944224 x216 Exec. Asst bettye@lewedwardsgroup.com THE LE'sy' EDIWARDS GROL'P Utility Users Tax (UUT) Measures City of Bellflower (2 UUTs) City of Canyon Lake City of Cathedral City City of Cloverdale City of Cupertino City of Desert Hot Springs City of Dinuba City of Elk Crove City of Emeryville City of Gardena City of Grover Beach ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED City of Hercules (2 measures) ENACTED City of Hermosa Beach City of HuntinSton Beach City of Indio City of Inglewood City of La Habra City of Lawndale City of Newark City of Norwalk City of Paramount City of Pasadena City of Pinole City of Redondo Beadr City of Santa Cruz City of Santa Fe Springs Ciiy of Seaside City of Seal Beach City of Santa Monica City of South Pasadena City of Stockton City of Torrance City of Valleio ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED PROTECTED ENACTED PROTECTED ENACTED ENACTED ENACTED ENACTED ENACTED ENACTED Transient Occupancy Tax Measures City of Artesia City of Kingsburg City of Marina City of Riverside City of West Hollywood ENACTED ENACTED ENACTED ENACTED ENACTED THE LE\w/ EDWARDS G RO U P SANIPLE PROIECT SCHEDULE FEBRUARY 2016 LAUNCHPROIECT E Review Town's Arc-hival Election Results and current demographics, policies and media information E Convene Team Kick Off Planning Meeting MARCH 2016 CONDUCT ASSESSMENT, DEVELOP STRATEGIC PLAN D Develop Opinion Research Survey E lnitiate interviews B Refine/update Opinion Leader database (Town) El Complete survey interviews and analysis of results E Present results to Town staft reach consensus on approach 0 Present results to Town Council E DevelopRecommended Communications/EngagementPlan tr Besin scheduling community presentations (Town) APRrL -IUNE 2016 LAUNCH COMMUNITY ENGAGEMENT E Develop and recommend Communications/EngagementCollaterals o Draft lnitial ln{ormation Documents/Engagement Tools for use in routine Town communications vehicles, such as Bill Stuffers, Town newsletter, Town website, and social media o Develop Informational Speakers' Bureau Toolkit o Conduct In{ormational Message Training for Town Staff D Deliver community presentations (Town) tr Copy write Opinion Leader updates and information for such sources as Eamed MediaA.,Jew Media/Social Media El Update Town website and other communications vehicles (Town) with informational message points developed by LEG 0 Develop answers for community questions, continue to uPdate communications/engagement materials Q Conceive and produce informational mailing to solicit inPut E Assess community responses, make adiustments as needed IULY 2015 PREPARE FOR MEASURE PLACEMENT U Conceive/produce 2"d informational mailing (report back) E Conduct Tracking Survey if needed, analyze survey results tr Brief City on strategic recommendations O If viable to proceed, assist with staff reports and measure preparation/s E Advise on Media Strategy E Assist in preparing for Council adoption vote/s o Media updates THE LE,\W/ EDWARDS CROUP o Communityparticipation Town Council acts to place measure/s on the ballottr AUGUST 2015 POST.ADOPTION ACTIVITIES D Measure materials are submitted to County Elections Office El Update Town's website and all communications vehides with updated Measure information/s prepared by LEG E Issue Ophion Leader Update announcing placement of the measure/s on the ballot E Address Rapid Response Needs as necessary The Toun of Los Gatos can continue its factual, informational ffirts following placement of a nrcasure on the ballot, but cannot engage in any partisan actiaities. SEPTEMBER - OCTOBER 2016 O Continue 2'd round of informational Speakers'Bureau presentations (Town) E Implement Eamed MediaflntemetCommunications 0 Issue three informational mailings E Address rapid response needs E Provide two-way media comments E Thank the community for participating in the election (City) Whot is Meosure V? \|.$urc V is, h,ncl tax prrd ONLI bv h,tt.l ,nd morcl gucsrs. Horcl vrsrtors pa.v thrs tax whcn thcy stay at a Rivcrsrdc hotcl ,x m.xcl. Rrvcrsidc rcsrdcnrs. homcowncrs or propcnt ,,wncn - wh,, arc nr* hottl ,'r motcl gucsts - ar. NOT rax.d. Will Meosure V funds stoy locol? Y.r. Mcasur. V will provide a srahle. l.'cal revcnuc s,urcc that cant hc takcn hy Sacramcnr,r.,r the Grunty-- Funds irom \'lcrsur( V arc lcgall-v rcquircd to stay hcrc in Rrvcrsrdc. grvrng ur Lralcontrolt. prtcctcsstntral citv sarvicas- How would Meosure V mointoin locol services? lf passcrl. \lcrsure V lunds trrll help marntern rsxntill crty strrrces. such as: I V,lnr.rnrn,a 9-l-| r.spr,nst fimes I llirnrainrns fire pr,'tectr,,n end nclihhrrh,xxl ri,Lcc pak,ls The State has takcn 565 million from fuverside - most rocentlv Sl7 million this spring from redevelopmenr mone I' used to creare local jobs. Sacrlmento will continue to take millions more due to the State budget crisi5 and Measure V provides funding for ltal services that can't l,e raken ,wr!'. Pnrviding communiry strviccs lmprovrng convcntron ccmcr scrvrccs and frcilirrcs r,r promrtctrunsm and oconomic gro*rh lUa' ntarnrng city parks ind playgrounds Supp(niflE lihrarv prar.ms and hours Whot will il cost? \l.asur. V ri p.'d (,nly b) hrrrland mrtclgucsts and rncrcascs thccrxr,i a hrtrl rxm hr iust 2'i, lirr horeVmorcl vrsit(,rs. brngang,rrlr rat.s rn lin. wr(h 5rmrlar (rncs. Thi rrrcasc will hc rmplcmcn(.d in phars tvlih l"z, in July 201J .rnJ .rn alr}n,'n.rl l'1, 'n ,ul) l0l4- Hor do we knor funds will be spent responsibly? Mcarurc V rncludcs srrong fiscal accountabrlrty protcctions, includrng hcrng subicr't o puhlicly availablc. annual. indcpcndcnt audirs of cit.r lunds and Anlulv l'", rlr Rrnrsr& Cm C(,urrl \-/pb,:cd Mcrsun v , n ! , ,ur Nr \tm hcr :- b:llot- Mcisu'tv6aht lrarpad( hb!, k'r.l and mrxcl Srrlrs. Rilrrsrde rcsilms. hmd,*{Ers or pn,Fn}' o$'rErs - * r rrc rx{ h)i?Urn(!rd Frsts - irc NOT t .d. lf M.asu.. V 's ippn'\cd h) vorcrs. * would pn'ri& Riv.nr& wrrh addirnnal rcvcntr to kccp olr crtl rn thc ngit rrack. snmulan &,cel e('r,ft )mrc gi(,*th, mark.l ind atrrrct m,rr rislnlr. b) impn,vinS vrito..nd .(nv<nrion licrlni6.nd s.Nii.s. ard mamt:in !.Mccs thrr rre imp..Ed b) rErrors such is puhl,c s.l.q. cm.r8.rrct r.spl,nr. park,Ibran. and .ommunio rrviccs. E. Visil www.rirrersideco.gov for more informotion PAID RIVERSIDE'S TAX H xol Bollot Cily of Nework Meoture Y ns b.d lu* s,pp..t , X..?i.E L S6id C-r..9..r .,/ lvk d,fio riglldr!@dlldEd p.Ia .fia. ,, tdEd oeip gd* , Nl-'dii'g Ff dd ld*.+. .d...EEtE8lsrdcly lloY io Yoa. IL d.ds tr d lodqr. 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Y rtpdftl AEl.3i.. pl6. v ffi.ffiLdg. Remember lo Vone November 4a INFORMANON ABOUI ffi:* We Need Your Holpl Cry t rl drnr E@n d ffiiysqrrm irarE. .m EnPa olls Ya Lla6-erd..q-ydt.idl?f lwrr o rqr rr* r nprr tr q ara liE-ldral!.irdc{e*hg drrt. ol l*t - ,.1 o, ry.bi b d.d.c dr..r b q.a/. brgr d-q- LFn,ta,n Cr, ol lbt lB b! .ld.s rh. c6Mry Fst- ..d ra b. .rdr.lrE ltldE b prtdd Iilr . Coantrd tlbll-.axy- w. r.E{i., de. q4a. aar.rr rn @rEE-r -rl (harr..l b t- tqn I'kr'. 6nl.l .aq, nri Pirr-, ...ri .nd ld... d f,!6.1,ll th. car'. li.at ..d 6nrnr .tE dr-.t- Ilr-dEr-- & rb. C.mray Lr foo b a. - .brll. 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Tb6 C*y haa abo le ced aftE s.llod p.ograrns m6t c,ir6 p.greotbn paogrrrs, and the rndnienance of part!, ladscape. hrldiils. dld 3!6eB- R€crElicn and sen,o. servae Fogratrls. mcludrE as r€! as lh€ holrs CiV Ha[ ls op€n !o addilin to these q*1 6e Ciiy h8s b.rn lrrceo:o usc csene funos ro coverlhe Evqr {,Ih 0l€se adions. du6lo th€ coat!€d d€dno in tne ecommy. we wll be faceo !'Jtfi mqe severe I R-i.ldib r! EE rlod .Dan .rtr !..viE td rlqldnr a tl€'xrt r6rtr rrrl b qEuB trd tr Cly mrira,E a l,d rarEE d 5€.vb6 .l .rcd..{ Th.nk you lor your commor*ll a X..t f ol,.drrn ny.t tpL..bllv.bro hpdrr b. { d lls sea a L@e C t L.(. F, Ei. nulr 'lllt r court , cr lo.{y, iEt h Ssorrart. Roben a Ebamr B ! All ol th... o.o!.ain ... npctri b facEt Yrlrr! b. car.tul a.d thdrghnul .!o.tar. n lstirs. Report to Residents newark .-,. u.-a .'l, - tl -