2016-043 - Calling for a general tax measure to be placed on the November 8, 2016 Ballot to increase the TOTRESOLUTION 2016 -043
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
CALLING FOR PLACEMENT OF A GENERAL TAX MEASURE TO BE HELD AT
THE NOVEMBER 8, 2016 GENERAL MUNICIPAL ELECTION FOR THE
SUBMISSION TO THE QUALIFIED VOTERS OF A PROPOSED ORDINANCE
AMENDING THE TOWN'S TRANSIENT OCCUPANCY TAX (TOT) BY INCREASING
THE RATE FROM 10% TO 12% AND ADDRESSING ONLINE TRAVEL COMPANIES
AND OTHER THIRD PARTY BOOKINGS
WHEREAS, pursuant to Section 9222 and 10201 of the California Elections Code, the
Town Council has authority to place propositions on the ballot to be considered at a Municipal
Election; and
WHEREAS, pursuant to Article III of Chapter 25 of Town of Los Gatos Municipal Code
(Section 25.20.010 through Section 25.20.080), the Town currently imposes a Transient
Occupancy Tax ( "TOT ") at the rate of ten percent (10 %) upon guests of hotels and other
transient accommodations within the Town; and
WHEREAS, the Town Council desires to amend the Town of Los Gatos Municipal Code
to increase the rate of the TOT from ten (10 %) to twelve percent (12 %); and
WHEREAS, the Town Council desires to amend the Town of Los Gatos Municipal Code
to allow for the imposition and collection of the TOT on the full rent charged to a guest for hotel
occupancy, whether the occupancy is booked directly by the guest, through the guest's employer
or agent, or through online travel companies which enable guests to purchase occupancy via the
Internet, or by similar electronic means; and
WHEREAS, the TOT is a general tax the proceeds of which are deposited into the
Town's General Fund. The General Fund pays for essential Town services such as police
protection, street operations and maintenance, library services, parks services and general
municipal services to the public; and
WHEREAS, on November 6, 1996, the voters of the State of California approved
Proposition 218 (California Constitution, Article XIIIC), an amendment to the State Constitution
which requires that all general taxes which are imposed, extended or increased must be
submitted to the electorate and approved by a majority vote of the qualified electors voting in the
election; and
WHEREAS, the amendments proposed in the attached ordinance which increase the rate
of the TOT constitute a tax "increase" subject to Proposition 218; and
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Resolution 2016 -043 August 2, 2016
WHEREAS, the amendments proposed in the attached ordinance which apply the TOT
rate to the total rent charged to a guest for occupancy in a hotel (including any retail markup and
other charges imposed through purchase of occupancy through an employer, agent or on -line
travel company) may also be characterized as an "increase" in the TOT under Proposition 218;
and
WHEREAS, pursuant to Proposition 218 (California Constitution Article XIIIC, §2(b)),
any election for the approval of an increase to a general tax must be consolidated with a regularly
scheduled general election for members of the governing body of the local government; and
WHEREAS, pursuant to the Town of Los Gatos Municipal Code Section 2.30.010 and
Government Code Section 36503.5, general municipal elections in the Town shall be held on the
day of the statewide general election. Therefore, the next regularly scheduled General Municipal
Election for the election of members of the Town Council will be held on Tuesday, November 8,
2016; and
WHEREAS, pursuant to California Election Code 9222, the Town Council desires to
submit to the voters at the November 8, 2016 General Municipal Election one ballot measure
deciding whether an Ordinance shall be adopted to increase the rate of a general tax in the Town,
namely, the Transient Occupancy Tax from 10 % to 12 %.
WHEREAS, pursuant to Government Code §53724 ( "Proposition 62 "), a two thirds
(2/3) vote of the Town Council is required to place the Measure on the November 8, 2016 ballot.
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS,
CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. Findings. The Town Council finds that all of the preceding recitals are true
and correct and are hereby incorporated and adopted as findings and determinations by the Town
Council as if fully set forth herein.
SECTION 2. By adoption of Resolution No. 2016 -031 on June 21, 2016, the Town
Council has called and given notice of a General Municipal Election to be held on Tuesday,
November 8, 2016 in the Town of Los Gatos, County of Santa Clara, for the election of two
members of the Town Council for a term of four years.
SECTION 3. Submission of Measure. Pursuant to Government Code, §53724 and any
other applicable requirements of the laws of the State of California relating to general law cities,
the Town Council, by a two- thirds (2/3) supermajority vote, hereby orders the ordinance attached
hereto as Exhibit "A" and by this reference incorporated herein and made an operative part
hereof, to be submitted to the voters of the Town at the General Municipal Election to be held on
Tuesday, November 8, 2016. The full text of the ordinance shall not be printed in the voter ballot
pamphlet materials, but copies of the measure shall be available from the Town Clerk.
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Resolution 2016 -043 August 2, 2016
SECTION 4. The ballot proposition shall be presented and printed upon the ballot
submitted to the voters in the manner and form set forth in this Section 4. On the ballot to be
submitted to the qualified voters at the Town General Municipal Election to be held on Tuesday,
November 8, 2016, in addition to any other matters required by law, there shall be printed
substantially the following:
To maintain quality of life and small town
character in Los Gatos by enhancing traffic
safety and flow; maintaining 911 response,
police services, parks, trails, creeks,
playground equipment and restrooms;
repairing potholes and Town facilities;
YES
NO
beautifying Downtown; providing general
services, shall Los Gatos increase by 2% the
short-term rental tax paid only by
hotel/lodging guests, raising approximately
$350,000 to $400,000 per year with
published annual audits, fiscal oversight, and
all funds spent locally for Los Gatos?
This question requires the approval of a majority of those casting votes.
SECTION 5. Conduct of Election. The Town Clerk is authorized, instructed and directed
to procure and furnish any and all official ballots, printed matter and all supplies, equipment and
paraphernalia that may be necessary in order to properly and lawfully conduct the election. In all
particulars not recited in this Resolution, the election shall be held and conducted as provided by
law for holding municipal elections.
SECTION 6. Notice of Election. Notice of the time and place of holding the election is
hereby given, and the Town Clerk is authorized, instructed and directed to give further or
additional notice of the election, in time, form and manner as required by law.
SECTION 7. Impartial Analysis. Pursuant to California Elections Code §9280, the Town
Council hereby directs the Town Clerk to transmit a copy of the measure as set forth herein to
the Town Attorney. The Town Attorney shall prepare an impartial analysis of the measure, not to
exceed 500 words in length, showing the effect of the measure on the existing law and the
operation of the measure, and transmit such impartial analysis to the Town Clerk within fourteen
(14) days following the adoption of this Resolution. The impartial analysis shall include a
statement indicating whether the Measure was placed on the ballot by a petition signed by the
requisite number of voters or by the Town Council. In the event the entire text of the Measure is
not printed on the ballot, or in the voter information portion of the sample ballot, there shall be
printed immediately below the impartial analysis, in no less than10 -font type, the following:
"The above statement is an impartial analysis of Ordinance or Measure "A ". If you desire a copy
of the ordinance or measure, please call the election official's office at (insert phone number) and
a copy will be mailed at no cost to you."
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Resolution 2016 -043 August 2, 2016
SECTION 8. Written arguments may be filed in favor or against the measures pursuant
to §9282 of the Elections Code. Rebuttal arguments may be submitted as provided for in §9285
of the Elections Code.
SECTION 9. Ballot Argument. Members of the Town Council are hereby authorized to
submit a ballot argument for the measure pursuant to Article 4 of Chapter 3 of Division 9 of the
California Elections Code.
SECTION 10. Rebuttal Argument. Pursuant to Section 9285 of the Elections Code of the
State of California, when the Town Clerk has selected the arguments for and against a Town
measure which will be printed and distributed to the voters, the Clerk shall send copies of the
argument in favor of the measure to the authors of the argument against, and copies of the
argument against to the authors of the argument in favor. The authors, or a majority of the
authors, may prepare and submit rebuttal arguments not exceeding 250 words or may authorize,
in writing, others to submit a rebuttal argument. The rebuttal arguments shall be filed with the
Town Clerk, accompanied by the printed names(s) and signature(s) of the person(s) 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, not more than ten (10) days after the
final date for filing direct arguments. Rebuttal arguments shall be printed in the same manner as
the direct arguments. Each rebuttal argument shall immediately follow the direct argument that it
seeks to rebut. All previous resolutions providing for the filing of the rebuttal arguments for
Town measures are repealed. The provisions of the Section 9 shall apply only to the Election of
November 8, 2016 concerning the ballot Proposition set forth in this Resolution and shall then be
repealed.
SECTION 11. Pursuant to Elections Code Section 10002, the Town Council hereby
requests the Board of Supervisors of the County of Santa Clara to make available the services of
the Registrar of Voters for the purpose of performing the usual services necessary in the conduct
of the consolidated general municipal election, including the provisions of election supplies and
voters' pamphlets; and that upon approval of such requests, the Registrar of Voters of the County
of Santa Clara shall be reimbursed for all costs incurred by said services.
SECTION 12. 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 8, 2016, 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
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 13. Other Acts. The Mayor and all other officers of the Town are hereby
authorized and directed, jointly and severally, to do any and all things, to execute and deliver any
and all documents that they may deem necessary or advisable in order to complete the process
for placing the proposition on the November 8, 2016 ballot.
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Resolution 2016 -043 August 2, 2016
SECTION 14. Certification. The Town Clerk shall certify to the adoption of this
Resolution.
SECTION 15. Filing with County. The Town Clerk shall, not later than the 88th day
prior to the General Municipal Election to be held on November 8, 2016, file with the Board of
Supervisors and the County Clerk — Registrar of Voters of the County of Santa Clara, State of
California, a certified copy of this Resolution.
SECTION 16. Public Examination. Pursuant to California Elections Code §9295, this
measure will be available for public examination for no fewer than ten (10) calendar days prior
to being submitted for printing in the sample ballot. The examination period will end on the day
that is seventy-five (75) days prior to the date set for the election. The Clerk shall post notice in
the Clerk's office of the specific dates that the examination period will run.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos held on the 2nd day of August, -2016 by the following vote:
COUNCIL MEMBERS:
AYES: Marcia Jensen, Steve Leonardis, Rob Rennie, Marico Sayoc, Mayor Barbara Spector
NAYS: None
ABSENT: None
ABSTAIN: None
ATTEST:
*CL" IL61 CLERK ADMIN RA OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: �(8 ► co
LOS GATOS
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Resolution 2016 -043 August 2, 2016