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HomeMy WebLinkAboutCC Measure E 2016 Call for Apps`SAN RAFAE L Agenda Item No: 3.b .*I THE CITY WITH A MISSION Meeting Date: October 17, 2016 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: City Clerk Prepared by: Esther Beirne City Manager Approval: File No.: 9-2-55 SUBJECT: CALL FOR APPLICATIONS TO FILL THREE FOUR-YEAR TERMS TO THE END OF NOVEMBER 2020 ON THE MEASURE `E' TRANSACTIONS AND USE TAX (TUT) OVERSIGHT COMMITTEE, DUE TO EXPIRATION OF THE TWO-YEAR TERMS OF JOHN ERDMANN, GLADYS GILLILAND AND CYR MILLER (CC) RECOMMENDATION: It is recommended that Council: a) Call for applications to fill three four-year terms on the Measure `E' Transactions and Use Tax (TUT) Oversight Committee to the end of November, 2020; b) Set deadline for receipt of applications for Tuesday, November 8, 2016 at 5:00 p.m. in the City Clerk's Office, Room 209, City Hall; and b) Set date for interviews of applicants at a Special City Council meeting to be held on a date to be determined. SUMMARY BACKGROUND: The two-year terms of John Erdmann, Gladys Gilliland and Cyr Miller will expire at the end of November, 2016. As per Resolution No. 13681, adopted on February 18, 2014, appointments to the Measure `E' Transactions and Use Tax (TUT) Oversight Committee will be limited to two consecutive four-year terms. Applications may now be submitted electronically — see http://www.citvofsanrafael.orL/citvclerk-boards/ for all relevant information — and are also available in hard copy format at the City Clerk's Office. ACTION: Approve staff recommendation. Enclosures: Vacancy notice Ordinance 1913 Application Guidelines Ethics Training Information FOR CITY CLERK ONLY File No.: 9-2-68 Council Meeting: 10/17/2016 Disposition: Approved staff recommendation THREE VACANCIES - CITY OF SAN RAFAEL MEASURE `E' TRANSACTIONS AND USE TAX (TUT) OVERSIGHT COMMITTEE Applications to serve on the MEASURE `E' Transactions and Use Tax (TUT) Oversight Committee, City of San Rafael, to fill three four-year terms may be obtained at the City Clerk's Office, City Hall, 1400 Fifth Avenue, Room 209, San Rafael, or the City's website at httD://www.citvofsanrafael.or2/citvclerk- boards/ The deadline for filing applications is Tuesday, November 8, 2016 in the City Clerk's Office, Room 209. ONLY RESIDENTS OF THE CITY OF SAN RAFAEL MAY APPLY. Members may serve two consecutive terms The Measure `E' TUT Oversight Committee ensures that all revenues received from the voter -approved local Transactions and Use Tax (Measure `E') are only spent on permissible uses, as outlined in Ordinance No. 1913 attached. The Committee does not have any budgetary decision authority, does not allocate financial resources, and does not make budget or service recommendations to the City Council. The Committee will meet at least once each fiscal year. The Measure `E' TUT Oversight Committee Guidelines and Policy re: mission, roles, responsibilities, and duties, are attached. There is no compensation paid to Committee Members. Members must comply with the Citv's ethics training requirement of AB 1234, and reimbursement policv. See attached information. Interviews of applicants will be held at a Special Meeting of the San Rafael City Council on a date to be determined. ESTHER C. BEIRNE City Clerk City of San Rafael Dated: October 18, 2016 ORDINANCE NO. 1913 AN ORDINANCE OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 3.19 OF THE SAN RAFAEL MUNICIPAL CODE EXTENDING AND INCREASING THE EXISTING TRANSACTIONS AND USE TAX ADMINISTERED BY THE STATE BOARD OF EQUALIZATION, SUBJECT TO APPROVAL OF A MAJORITY OF THE ELECTORS VOTING ON THE TAX MEASURE AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2013. The City Council of the City of San Rafael hereby makes the following findings in connection with the adoption of this Ordinance: DIVISION 1. WHEREAS, In 2005, the San Rafael community voted in favor of Measure S, adding Chapter 3.19 to the San Rafael Municipal Code establishing a local transactions and use tax (i.e. sales tax) to protect vital city services from budget cuts; and WHEREAS, the City has used these funds for a number of purposes, including maintaining rapid emergency response times, adequate numbers of on -duty police officers and firefighters and many additional core City services; and WHEREAS, this one-half of one percent (0.5%) increase in our local sales tax accounts for approximately 12% of the City's General Fund budget, has been shielded from State appropriation, and has stayed in San Rafael to benefit local residents; and WHEREAS, given the fiscal challenges that all cities have faced in recent years, Measure S proved essential for protecting vital city services in San Rafael from budget cuts; and WHEREAS, since the 2008 Great Recession, the City has been critically evaluating its priorities and strategies for providing quality community services with new fiscal constraints. To increase efficiency and work on a leaner budget, the City has established new partnerships with other agencies to increase shared services, streamlined regulations to promote a positive business climate, cut over 60 staff positions, temporarily reduced compensation for most staff, reformed pensions, and scaled back employee retiree health benefits. The City will continue to analyze which services are a priority, and the most cost-effective method of delivering these services; and WHEREAS, Measure S funding is scheduled to expire, and if the City were to address this loss of locally -controlled funding with expenditure reductions alone it would have to consider cuts to police patrols, firefighters and emergency response, street and sidewalk repair, parks and community centers, and curtail access to libraries. Such cuts would be a last resort; however, police and fire account for more than half of San Rafael's budget, and in order to address a deficit of the magnitude that would occur if Measure S funding were to expire, the City inevitably would be required to consider cuts to public safety; and WHEREAS, even with the current sales tax in effect, there is not sufficient funding available for several key infrastructure needs such as seismic improvements for emergency dispatch as well as fire stations, information technology needs for improved service delivery, contributions to the City's emergency reserves, and other infrastructure needs identified as "unfunded" in the City's Five Year Capital Improvement Program; and WHEREAS, after study of the financial issues facing the City, and following numerous discussions with residents, neighborhood associations and business and service groups, and after extensive efforts to gauge the public's opinions and priorities through several surveys of San Rafael residents, the City Council has determined that the most prudent, reasonable and financially responsible action it can take to preserve the fiscal stability of San Rafael and to protect vital services and facilities in our City, is to place before the voters a ballot measure to extend the existing one-half of one percent (0.5%) transactions and use tax for a period of 20 years and increase the rate by one-quarter of one percent (0.25%), and to recommend its adoption to the voters; and WHEREAS, if the increased and extended transactions and use tax is approved by the voters at the municipal election on November 5, 2013, the existing tax would remain in effect until the operative date of the extended and increased tax. NOW THEREFORE, the City Council of the City of San Rafael does hereby Ordain as follows: DIVISION 2. Chapter 3.19 of the San Rafael Municipal Code is hereby amended to read as follows: Chapter 3.19 TRANSACTIONS AND USE TAX 3.19.010 -- Short Title. This Chapter shall be known as the City of San Rafael Transactions and Use Tax Ordinance. This Chapter shall be applicable only in the incorporated territory of the City. 3.19.015 -- Definitions. As used in this Chapter, "City" means the City of San Rafael and "tax" means the transactions and use tax imposed tinder the provisions of this Chapter. 3.19.020 -- Operative Date. "Operative Date" means the first day that the tax is imposed and collected. The Operative Date shall be April 1, 2014, unless a later Operative Date becomes effective under the provisions of Section 3.19.040. 3.19.030 -- Purpose. This Chapter is adopted to achieve the following, among other purposes, and the City Council directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative only if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that may be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes, D. To adopt a retail transactions and use tax ordinance that may be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 3.19.040 -- Contract With State. Prior to the Operative Date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided however, that if the City shall not have contracted with the State Board of Equalization prior to the Operative Date, it shall nevertheless so contract and in such a case the Operative Date shall be the first day of the first calendar quarter following the execution of such a contract. 3.19.050 -- Imposition of Transactions Tax; Transactions Tax Rate. 3 For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of three-quarters of one percent (0.75%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the Operative Date of this ordinance. 3.19.060 -- Place of Transaction. For the purposes of this Chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3.19.070 -- Imposition of Use Tax; Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the Operative Date of this ordinance for storage, use or other consumption in said territory at the rate of three-quarters of one percent (0.75%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 3.19.080 -- Proceeds of Tax. The proceeds of the transactions and use tax imposed by this Chapter shall be deposited into the General Fund of the City to be used for all general government purposes which may include, but are not limited to, fire and police protection, street and sidewalk repair and maintenance, library services, park repair and maintenance, recreational programs, building and code enforcement services, planning and zoning services, capital equipment requirements, repair and replacement of City facilities, capital improvement projects, operational expenses, fiduciary responsibilities, administration, indebtedness and general obligations of the City. The tax imposed by this Chapter is intended to be and is, a general tax, the proceeds of which are to be spent as the City Council shall in its discretion, from time to time, determine. 3.19.090 -- Adoption of Provisions of State Law. Except as otherwise provided in this Chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this Chapter as though fully set forth herein. 3.19.100 -- Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: 4 A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made: 1. When the word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California. 2. When the result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Chapter. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.19.110 -- Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 3.19.120 -- Exemptions and Exclusions. A. There shall be excluded from the calculation of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state -administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or 5 property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out -of -City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out -of -City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the Operative Date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the Operative Date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this Chapter, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state -administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the Operative Date of this Chapter. 6 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the Operative Date of this Chapter. 5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.19.130 -- Amendments. All amendments subsequent to the effective date of this Chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this Chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Chapter. 3.19.140 -- Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this Chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.19.142 -- Annual Audit. The proceeds resulting from this Transactions and Use Tax shall be deposited into the City's General Fund and become subject to the same independent annual audit requirements as other general fund revenue. 3.19.144 -- Independent Citizen Oversight. A City Transactions and Use Tax Committee, to be established by the City Council by Resolution, shall review the collection and expenditure of tax revenues collected under the authority of this Chapter. The Committee shall consist of at least five members, who shall be residents of the City. The terms of the Committee members and their specific duties shall be established by resolution of the City Council. 3.19.146 -- All Funds Staying Local. All tax revenues collected under the authority of this Chapter shall be expended solely on local municipal services, and shall not be used for any other purposes. 3.19.148 -- Effective Date. This ordinance levying the tax described herein shall be effective ten days after the date on which the City Council has declared that the voters of the City of San Rafael have approved said ordinance by a vote of no less than a majority of the votes cast by the electors voting on the tax measure set forth in this ordinance at the general municipal election to be held on Tuesday, November 5, 2013, and the tax established herein shall become operative on April 1, 2014 or on such later date as provided in Section 3.19.040. 3.19.150 -- Termination Date. The authority to levy the tax imposed by this Chapter shall expire on March 31, 2034, or at the end of twenty years from the Operative Date if the Operative Date is later than April 1, 2014 as provided in Section 3.19.040. DIVISION 3: If any section, subsection, sentence, clause or phrase of this Ordinance or the application thereof to any person or circumstance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. DIVISION 4: This ordinance shall be published once in full before its final passage, in a newspaper of general circulation, published and circulated in the City of Ian Rafal O. PAI .LIPS, Mayor ATTEST: �Sl G /� . ESTHER BEIRNE, City Clerk The foregoing Ordinance No. 1913 was read and introduced at a Regular Meeting of the City Council of the City of San Rafael, held on the 15'h day of July, 2013 and ordered passed to print by the following vote, to wit: AYES: Councilmembers: Colin, Connolly, Heller, McCullough & Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers: None and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on the 5th day of August, 2013, subject to voter approval at the General Municipal Election to be held on Tuesday, November 5, 2013. ESTHER BEIRNE, City Clerk CITY OF SAN RAFAEL APPLICATION TO SERVE AS MEMBER OF MEASURE `E' Transactions and Use Tax (TUT) Oversight Committee Name: Home address: City / State / Zip code: Resident of the City of San Rafael for years Present occupation: Name of business: Business address: * Home & business phone #: * E-mail address: Education: Participation in the following civic and community activities / organizations: My reasons for wanting to serve are: (add additional sheets as necessary) Describe any areas in which you may have a conflict of interest with the City: DATE: SIGNATURE: Filing Deadline: Mail or deliver to: City of San Rafael, Dept. of City Clerk Date: Tuesday, November 8, 2016 City Hall, 1400 Fifth Avenue, Room 209 Time: 5:00 PM P.O. Box 151560 San Rafael, CA 94915 *This information will be kept confidential to the extent permitted by law Measure `E' Transactions and Use Tax (TUT) Oversight Committee Guidelines and Policy I. Mission To ensure that all revenues received from the voter approved Transactions and Use Tax (Measure E) are spent on uses outlined in San Rafael Ordinance 1913. II. Governing Authority for Committee Formation Section 3.19.144 of the San Rafael Municipal Code requires the establishment of an Independent Oversight Committee: "A City Transactions and Use Tax Committee, to be established by the City Council by Resolution, shall review the collection and expenditure of tax revenues collected under the authority of this Chapter. The committee shall consist of at least S members, who shall be residents of the City. The terms of the Committee members and their specific duties shall be established by resolution of the City Council. " III. Roles, Responsibilities and Duties A) The responsibilities and duties of the Committee shall be limited to: 1) Review expenditures of Measure E general tax revenues to ensure the monies have been expended in accordance with the authorized municipal purposes of Measure E. To complete this review, the Committee shall: i) Understand allowable expenses of Measure E general tax funds (as identified in Section 3.19.080 of the Municipal Ordinance) which states: The proceeds of the transactions and use tax imposed by this Chapter shall be deposited into the General Fund of the City to be used for all general government purposes which may include, but are not limited to, fire and police protection, street and sidewalk repair and maintenance, library services, park repair and maintenance, recreational programs, building and code enforcement services, planning and zoning services, capital equipment requirements, repair and replacement of City facilities, capital improvement projects, operational expenses, fiduciary responsibilities, administration, indebtedness and general obligations of the City. The tax imposed by this Chapter is intended to be and is, a general tax, the proceeds of which are to be spent as the City Council shall in its discretion, from time to time, determine. ii) Review documentation from City Council and from City Council -appointed advisory committees that pertain to the prioritization of use of Measure E general tax funds. iii) Review annual reports prepared by the City's Finance Department that track the receipt and spending of Measure E general tax funds. iv) Prepare and submit to the City Council and the community an annual public report on the expenditures of Measure E general tax revenues for the previous fiscal year. (Committee Meetings will typically be held in the fall, for the fiscal year ending on the preceding June 30.) 2) Fulfill the final responsibilities of the Measure S TUT Oversight Committee under Ordinance 1837: Review and report on the final expenditures of Measure S during fiscal year 2013-2014, through its termination on March 31, 2014, to ensure that monies have been expended consistent with the authorized purposes of Measure S. B) The Committee shall not have any budgetary decision authority, shall not allocate financial resources, and shall not make budget or service recommendations to the City Council. C) The Committee shall not have authority to direct, nor shall it direct, City staff or officials. IV. Committee Structure: A) Appointments 1) The City Council shall make appointments to the Committee consistent with the established manner of appointing various City Commissions and related committee members. 2) The Committee shall be composed of five (5) members B) Oualification Standards Members of the Committee shall be at least 18 years of age and reside within the City limits. The Oversight Committee may not include any employee or official of the City, or any vendor, contractor or consultant doing business with the City. C) Term Committee members shall serve for a term of four years. Members' terms are to be staggered; The City Council will determine which three of the initial appointments will be for a two-year term. D) Chair and Vice -Chair The Mayor shall appoint the initial Chair. The Chair shall appoint the initial Vice -Chair. Thereafter, the Committee shall annually elect a chair and a Vice -Chair, who shall act as Chair only when the chair is absent. E) Compensation The Committee members shall serve without compensation. F) Meetings 1) The Committee shall conduct at least one meeting each fiscal year. 2) Special meetings may be called by the Committee's chair. Special meetings may also be called by Committee members if three or more members petition the chair for a special meeting. 3) All meetings shall be noticed and shall be open to the public in accordance with the Ralph M. Brown Act, Government Code Section 54950 et seq. Each member of the Committee will be given a current copy of the Ralph M. Brown Act. 4) A majority of the Committee members shall constitute a quorum for the transaction of any business. G) Vacancies and Removal 1) The City Council shall fill any vacancies on the Committee. 2) The City Council may remove any Committee member for any reason, including but not limited to, failure to attend two consecutive Committee meetings. Upon a member's removal, his or her seat shall be automatically deemed vacant. H) City Support The City shall provide the Committee with necessary technical and administrative assistance, including: 1) Preparation, provision and posting of public notices as required by the Brown Act and in the same manner as noticing City Council meetings. 2) Provision of a meeting room, including any available City audio/visual equipment. 3) Provision of meeting materials, such as agendas, minutes and supporting reports. 4) Retention of Committee records. 5) Properly staff all Committee meetings. 6) Educate Committee members on municipal finance. I) Termination of Committee The Measure E TUT Oversight Committee shall automatically disband six (6) months after the end of the fiscal year in which the enabling ordinance is repealed, ruled invalid or terminates under the provisions of the ordinance. The purpose of this time is to allow the Committee to complete its final report. NOTICE TO BOARD & COMMISSION APPLICANTS REGARDING ETHICS TRAINING On January 1, 2006, a new law became effective that requires two (2) hours of ethics training of the local legislative bodies by January 1, 2007. This new law defines a local legislative body as a "Brown Act" governing body, whether permanent or temporary, decision-making or advisory, and created by formal action of the City Council. In other words, any person serving on a City Council, Board, Commission, or Committee created by the Council is subject to this ethics training requirement. After this initial class, training will be required every two years. Ethics training can be accomplished by taking a 2 -hour class, self -study, or an on-line class. You may seek reimbursement for taking any authorized ethics class. The city staff member that is assigned to your committee can help you with the reimbursement process. After you have completed the ethics class, the original certificate needs to be given to the City Manager's Office for record-keeping, with a copy kept for your records. AB 1234 (Salinas). Local Agencies: Compensation and Ethics Chapter 700, Statutes of 2005 This law does the following: Ethics Training: Members of the Brown Act -covered decision-making bodies must take two hours of ethics training every two years, if they receive compensation or are reimbursed expenses. The training can be in-person, on-line, or self -study. For those in office on 1/1/06, the first round of training must be completed by 1/1/07. Expense Reimbursement -- Levels: Local agencies which reimburse expenses of members of their legislative bodies must adopt written expense reimbursement policies specifying the circumstances under which expenses may be reimbursed. The policy may specify rates for meals, lodging, travel, and other expenses (or default to the Internal Revenue Service's (IRS) guidelines). Local agency officials must also take advantage of conference and government rates for transportation and lodging. Expense Reimbursement -- Processes: Local agencies, which reimburse expenses, must also provide expense reporting forms; when submitted, such forms must document how the expense reporting meets the requirements of the agency's expense reimbursement policy. Officials attending meetings at agency expense must report briefly back to the legislative body at its next meeting.