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O-2214 F:\MunicipaILaw\Share\LAWS\ALS\WMP- Parcel Tax Ordinance - Final. 7 .19.doc City Council Meeting - July 25, 2006 Santa Monica, California ORDINANCE NUMBER 2214 (CCS) (City Council Series) AN ORDINANCE OF THE PEOPLE OF THE CITY OF SANTA MONICA, CALIFORNIA ADOPTING A CLEAN BEACHES AND OCEAN PARCEL TAX BY ADDING TO CHAPTER 7.64 OF THE SANTA MONICA MUNICIPAL CODE COMMENCING AT SECTION 7.64.010 ET SEQ THE PEOPLE OF THE CITY OF SANTA MONICA DO ORDAIN AS FOllOWS: SECTION 1. Clean Beaches and Ocean Parcel Tax Act. Chapter 7.64 et seq. of the Santa Monica Municipal Code, entitled "Clean Beaches and Ocean Parcel Tax Act," is hereby enacted and shall read as follows: 7.64.010 Title and Purpose This Chapter 7.64 et seq. may be cited as the "Clean Beaches and Ocean Parcel Tax Act." 7.64.020 Definitions The following words and phrases whenever used in this Chapter shall be construed and defined in this Section as follows: "Director" shall mean the Director of Environmental and Public Works Management Department, or his/her designee. 1 "Owner" shall mean the legal owner of any parcel of real property, except when the legal owner of the real property is such due to the holding of a mortgage, note or other security, in which case the "owner" shall be deemed to the beneficial owner of said parcel of real property. "Parcel" shall mean the smallest, separately segregated lot, unit or plot of land having an identified owner, boundaries and surface area which is documented for property tax purposes and given an assessor's identification number by the County of Los Angeles Tax Assessor. "Parcel Size" shall mean the size of the Parcel measured in acres. "Possessory Interest" shall mean possession of, claim to, or right to the possession of, land or improvements and shall include any exclusive right to the use of such land or improvements. "Runoff Factor" shall mean the number set forth in the table in section 7.64.040 below that represents the amount of average storm drainage from a Parcel for a particular land use. "Single Family Dwelling" shall mean a developed parcel with one single family detached housing unit. 2 7.64.030 Necessity, Authority, and Purpose (a) The City Council (the "Council") of the City of Santa Monica (the "City") hereby determines as follows: (1) that the cost to implement the City of Santa Monica Watershed Management Plan (the "Watershed Management Plan") throughout the City at the level required to provide for the health, safety, and general welfare of the residents of the City exceeds the amount of revenues from other sources; (2) that additional revenues are needed to fund a portion of the cost of implementing the Watershed Management Plan, including financing the operation, administration, maintenance, improvement, environmental restoration, upgrade and replacement of the existing and future storm drainage system, on-site stormwater management systems, storm drain conveyance system upgrades, and multipurpose capital improvement projects; (3) that the levy of a city-wide special tax as hereinafter provided is necessary to fund the foregoing municipal improvements and services. (b) This Ordinance was approved by the voters of the City at the consolidated State general election held on November 7, 2006 by the following vote: 3 Yes: No: Accordingly, the City of Santa Monica Clean Beaches and Ocean Parcel Tax (the "Tax") is levied under this Chapter pursuant to the City's Charter, Government Code Section 50075 et seq., and other applicable laws. Under the Charter, it is hereby expressly provided that, as an exercise of municipal affairs powers, the City shall be authorized to use all or a portion of the Tax allocated for capital improvements to pay installments of principal of and interest on bonded indebtedness or with respect to leases, or similar instruments for the purposes of providing financing for any capital improvements hereunder. 7.64.040 Tax Levy The Tax not exceeding the maximum amounts set forth in this section 7.64.040 is hereby levied, commencing the fiscal year 2007 -2008, on all Parcels, improved or unimproved, within the boundaries of the City. For each Parcel which is a Single Family Dwelling, the annual maximum Tax rate shall be eighty-four dollars ($84) for 2007-2008 (the "Basic Tax" or "BT"). 4 For each Parcel that is not a Single Family Dwelling, the maximum Tax rate for 2007-2008 shall be calculated according to the following formula: Parcel Size (acres) x Runoff Factor (RF) x BT .0637 The Runoff Factors are set forth below: Use Code Land Use Category Area Runoff Factor Breakdown 010C Condominium Up to 0.3257 Acre 0.8194 Area in Excess of 0.3257 Acre 0.0190 010F Cooperative Multifamily Up to 0.3257 Acre 0.8194 Area in Excess of 0.3257 Acre 0.0190 0200 Double, Duplex Up to 0.6514 Acre 0.4176 Area in Excess of 0.6514 0.0190 0300 Three Unit Multifamily Up to 0.9771 Acre 0.6815 Area in Excess of 0.9771 Acre 0.0190 0400 Four Unit Multifamily Up to 1.3028 Acre 0.8194 Area in Excess of 1.3028 Acre 0.0190 0500 Five or More Apartments or Units All Lot Areas 0.8553 0900 Mobile Home Parks All Lot Areas 0.8194 1000 Open Commercial All Lot Areas 0.4733 1100 Stores All Lot Areas 0.9086 1200 Store Combination (wI Office or Resid.) All Lot Areas 0.9086 1300 Department Stores All Lot Areas 0.9850 1400 Supermarkets All Lot Areas 0.9762 1500 Shopping Centers (Community) All Lot Areas 0.9578 5 1600 Shopping Centers (Regional) All Lot Areas 0.9461 1700 Office Buildings All Lot Areas 0.9086 1800 Hotels and Motels All Lot Areas 0.9578 1900 Professional Buildings All Lot Areas 0.9578 2100 Restaurants and Cocktail Lounges All Lot Areas 0.9461 2300 Banks and Savings and Loans All Lot Areas 0.9578 2400 Service Shops All Lot Areas 0.9461 2500 Service Stations All Lot Areas 0.9578 2600 Auto, Recreation & Construction All Lot Areas 0.9461 Equipment Sales & Service 2700 Parking Lots (Commercial - Use All Lot Areas 0.9461 Properties) 3100 Light Manufacturing All Lot Areas 0.9086 3200 Heavy Manufacturing All Lot Areas 0.9086 3300 Warehousing, Distribution & Storage All Lot Areas 0.9086 3600 Lumber Yards All Lot Areas 0.9578 3800 Parking Lots (Industrial - Properties) All Lot Areas 0.9086 6400 Clubs, Lodge Halls, Fraternal Orgs. All Lot Areas 0.9086 7100 Churches All Lot Areas 0.8194 7200 Schools All Lot Areas 0.8194 7400 Hospitals All Lot Areas 0.7435 7500 Homes for the Aged and Others All Lot Areas 0.6815 8100 Utilities All Lot Areas 0.4733 Miscellaneous The Tax imposed by this Chapter shall be assessed to the Owner unless the owner is by law exempt from 6 taxation, in which case, the tax imposed shall be assessed to the holder of the Possessory Interest in such Parcel, unless such holder is also by law exempt from taxation. The Tax shall not exceed the maximum amounts set forth in this section 7.64.040, except that the Tax shall be increased annually by the annual percent increase for twelve month period February through January of the prior fiscal year, if any, in the Wage Earners and Clerical Workers All Items Consumer Price Index (CPI-W) for the Los Angeles- Riverside-Orange County statistical area, or any successor index. For the purposes specified in section 7.64.050 below, the Tax shall be levied so long as it is necessary to pay for any financing of capital improvements, and so long as necessary for services as specified in section 7.64.050. The Tax is levied pursuant to California Government Code Section 50075 et seq. and is a tax upon each Parcel of property. The amount of the Tax is not measured by the value of the Parcel. 7.64.050 Purposes and Uses of Tax There is hereby established a special fund entitled "Clean Beaches and Ocean Parcel Tax Fund" to be maintained by the City. Proceeds of the tax, together with 7 any interest and penalties thereon (collectively, the "Tax Proceeds"), shall be collected each fiscal year and deposited in said special fund, and shall be used exclusively for the implementation of the Watershed Management Plan, including but not limited to, financing the operation, administration, maintenance, improvement, environmental restoration, upgrade and replacement of the existing and future storm drainage system, on-site stormwater management systems, storm drain conveyance system upgrades, and multipurpose capital improvement projects, improving the quality of stormwater, as well as complying with local, state, and federal stormwater regulations and paying for, or securing the payment of, any indebtedness incurred for these purposes, and any and all other purposes as more fully discussed therein. The following are goals of the Watershed Management Plan: . Reduce urban runoff pollution . Reduce urban flooding . Increase water reuse and conservation . Increase recreational opportunities and open space . Increase wildlife and marine habitat 8 The Tax Proceeds may a Iso be used to enforce and administer the Tax, including costs for submission of any measure to the voters for the establishment or alteration of the Tax. 7.64.060 Exemptions The Tax imposed by this Chapter shall not be construed as imposing a tax upon any person when the imposition of such tax upon that person would be in violation of either the Constitution of the United States or the Constitution of the State of California. The City Council is authorized to establish by resolution special exemption procedures and eligibility criteria for natural persons based on income, age or disability. The Tax imposed by this Chapter shall be subject to the exemptions set forth in this section or adopted by resolution as authorized herein. 7.64.070 Computation and Collection of Tax; Interest and Penalties The Director or his/her designee or employee is hereby authorized and directed each fiscal year, commencing with the fiscal year 2007-2008, to determine the Tax amount to be levied for the next ensuing fiscal year for each taxable parcel of real property within the City, in the manner and as provided in Section 7.64.040. The Chief 9 Financial Officer (the "CFO") is hereby authorized and directed to provide all necessary information to the Auditor- Controller of the County of Los Angeles to effect proper billing and collection of the Tax, so that the installments of the Tax shall be included on the secured property tax roll of the County of Los Angeles. Un less otherwise required by the Council, no Council action shall be required to authorize the annual collection of the Tax as herein provided. The Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes collected by the County of Los Angeles; provided, however, that the Council may provide for other appropriate methods of collection of the Tax by appropriate resolution(s) of the Council. The Tax shall constitute a lien upon the Parcel upon which it is levied until it has been paid. Any unpaid Tax due under this Chapter shall be subject to all remedies provided under the City's Municipal Code and as provided by law. 10 7.64.080 Accountabil ity; Citizen's Oversight Committee Pursuant to Sections 50075.1 and 50075.3 of the California Government Code, the specific purposes of the Tax and the requirement that the Tax proceeds be applied to such purposes and the establishment of a special fund for the Tax proceeds are as set forth in section 7.64.050. So long as the Tax is collected hereunder, commencing no later than July 1, 2008, the CFO is here by authorized and directed to cause to be prepared and filed with the Council a report that shows the amount of Tax collected and expended and the status of any projects funded with the Tax Proceeds. For purposes of this section 7.64.080, the CFO is authorized to retain such consultants, accountants or agents as may be necessary or convenient to accomplish the foregoing. The Council shall establish a Citizen's Oversight Committee to audit the use of the Tax Proceeds. The membership, scope and responsibilities of the Citizen's Oversight Committee shall be determined by the Council in its exercise of discretion. 11 7.64.090 Examination of Books and Records and Annual Audit The CFO or Director or their designee or employee or agent, is hereby authorized and directed to examine assessment rolls, property tax records, records of the Los Angeles County Recorder and any other records of the County of Los Angeles deemed necessary in order to determine ownership of parcels and computation of the Tax. A certified public accounti ng firm retained by the City will perform an annual audit to assure accountability of the proper disbursement of these Tax Proceeds in accordance with the objectives stated herein. 7.64.100 Property Tax This special parcel tax is a property tax and qualified property owners and renters shall be entitled to the benefits of the Gonsalves-Deukmejian-Petris Senior Citizen's Property Tax Assistance Law (California Revenue & Taxation Code Section 20501 et seq.) and the Senior Citizens and Disabled Property Tax Postponement Law (California Revenue & Taxation Code Section 20581 et seq.), as provided by law. 12 7.64.110 Refund of Tax, Penalty, or Interest Paid More Than Once; or Erroneously or Illegally Collected When the amount of the Tax, any penalty, or any interest has been paid more than once, or has erroneously or illegally collected or received by the City under this Chapter, it may be refunded provided a verified claim in writing therefore, stating the specific ground upon which the claim is founded, is filed with the CFO within one (1) year from the date of payment. If the claim is approved by the CFO, the excess amount collected or paid may be refunded or may be credited against any amounts then due and payable from the person from whom it is collected or by whom paid, and the balance may be refunded to such person, his/her administrators or executors. 7.64.120 Savings Clause The provisions of this Ch apter shall not apply to any person, or to any property as to whom or which it is beyond the power of the City to impose the Tax herein provided. If any provision, sentence, clause, section or part of this Chapter is found to be unconstitutional , illegal or invalid, such unconstitutionality, illegality or invalidity shall affect only such provision, sentence, clause, section or part of this Chapter and shall not affect or impair any remaining 13 provisions, sentences, clauses, sections or parts of this Chapter. It is hereby declared to be the intention of the City that this Chapter would have been adopted had such unconstitutional, illegal or invalid provision, sentence, clause, section or part thereof not been included herein. 7.64.130 Regulations The Council is hereby authorized to promulgate such regulations as it shall deem necessary in order to implement the provision of this Chapter, including implementing this Chapter which is hereby codified in Article 7, Chapter 7.64 et. seq. of the Santa Monica Municipal Code or as otherwise designated by the City Clerk. 7.64.140 Increase Appropriations Limit Pursuant to California Constitution Article XIIIB, the appropriations limit for the City of Santa Monica is hereby increased by the aggregate sum authorized to be levied by this Tax for the fiscal year 2007-2008 and each year thereafter. SECTION 2. Amendment or Repeal. The City Council is hereby authorized to adopt additional provisions consistent with the intent of this Ordinance and to amend the provisions of this Ordinance without voter approval, provided such amendments do not extend the Tax to a taxpayer not subject to the Tax or increase the amount of the Tax beyond the amount authorized by this Ordinance. Any amendment to this Ordinance 14 which extends the Tax to a taxpayer who would otherwise not be subject to it or increase the amount of Tax beyond the maximum tax rates and escalation factors authorized by this Ordinance must be approved only by a vote of the qualified electors or property owners of the City. SECTION 3. Severability. If any provision, section, paragraph, sentence or word of this Ordinance, or the application thereof to any person or circumstance, is rendered or declared invalid by any court of competent jurisdiction, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance, and their application to other persons or circumstances shall not be affected thereby and shall remain in full force and effect and to that end the provisions of this Ordinance are severable. SECTION 4. Effective Date. This Ordinance relates to the levying and collecting of the Tax by the City and shall be in full force and effect ten (10) days after the certification by the Council of the election returns indicating passage of the Ordinance by two-thirds of the voters casting votes in the election. APPROVED AS TO FORM: JY 15