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
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fd nEt lod,ol iildidion, idr&'g S. oflidol Ai6q. 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
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sb dI*aE rr.d d r.la6- n .d. d...M,..d drt6
I A Ie ara ncorDo.arit c.n'orunrty nErnber
V V.".pon*"
"rto "
i.prch€nsrv€ plan thar w
address d comnr.,rrty cmqrls.
b achieve a behncs., brdgpt t|e City ol
Xerets wlral we hrvo he.rd so far:
f{eti?rk ha.na& 33.2 mallo.l h qrls to
operare as oficier , as gcslro, aidulrg
6dGd r! nldrine c.lkr
s.rvic.. lnd codmunny
polidlc 6llo.is io .€.1r.
.. Flrglt r.irbo.E
crim. .l lh.ir hi9h.!l
! The ajo.'ly ol ,6id!ols 7 ollnularng ovs 50 posrlitls, ara pay cuts lq
€r"bFs.
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
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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
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! All ol th... o.o!.ain ...
npctri b facEt Yrlrr!
b. car.tul a.d thdrghnul
.!o.tar. n lstirs.
Report to Residents
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