R116071
City Council Meeting: July 23, 2024 Santa Monica, California
RESOLUTION NUMBER 11607 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
SUBMITTING TO THE VOTERS A MEASURE TO AMEND CHAPTER 6.70 OF THE
SANTA MONICA MUNICIPAL CODE TO INCREASE THE CITY’S PARKING FACILITY
TAX TO 18%, EXEMPTING CITY-OWNED LOTS AND STRUCTURES FROM THE
ADDITIONAL TAX, ACCOMPANIED BY AN ADVISORY MEASURE ASKING
WHETHER HALF OF THE INCREASED REVENUE FROM THE ADDITIONAL TAX
SHOULD BE SPENT ON PUBLIC SAFETY AND HOMELESSNESS, AND
AUTHORIZING CITY COUNCILMEMBERS TO FILE WRITTEN ARGUMENTS
FOR OR AGAINST THE MEASURES AND DIRECTING THE CITY ATTORNEY TO
PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURES
WHEREAS, Santa Monica Municipal Code Chapter 6.70 contains the City’s
parking facility tax (the “PFT”); and
WHEREAS, the PFT is a general tax imposed for general revenue purposes; and
WHEREAS, the PFT is imposed on any Operator that charges an Occupant a
Parking Fee in exchange for using a Parking Facility; and
WHEREAS, Santa Monica Municipal Code section 6.70.020 currently sets the PFT
rate at 10% of the total Parking Fee charged by an Operator; and
WHEREAS, the PFT was last amended in 1995 by Ordinance No. 1789 (CCS);
and
WHEREAS, 90% of the parking lots and structures owned by the City are in the
Coastal Zone; and
WHEREAS, the parking rates approved by the Coastal Commission are inclusive
of the City’s 10% PFT rate; and
WHEREAS, the Coastal Commission has taken the position that the City’s parking
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rates in the Coastal Zone are subject to Coastal Commission approval and require a
coastal development permit prior to increasing rates; and
WHEREAS, the City’s advertised parking rates at City-owned lots and structures
are inclusive of the City’s existing PFT rate; and
WHEREAS, with voter approval, the City could increase the PFT rate, while
maintaining the existing parking rates in City-owned lots and structures at the existing
levels; and
WHEREAS, increasing the PFT rate while maintaining the existing parking rates
in City-owned lots and structures would be revenue neutral because any increase in PFT
revenue would be offset by an equal decline in parking revenue; and
WHEREAS, the City desires to partially exempt City-owned lots and structures
from the PFT rate increase proposed by this measure out of administrative convenience
and to promote public access to the beach; and
WHEREAS, many residents live in the City of Santa Monica because the City
invests in community priorities, offers extensive services and programs that substantially
enhance the quality of life of its residents; and
WHEREAS, an additional locally-controlled revenue source is needed to restore
and enhance Santa Monica’s essential city services; and
WHEREAS, the City desires to raise the PFT rate to 18%; and
WHEREAS, the additional revenue from increasing the PFT rate is estimated to
raise an additional $6,700,000 in general fund revenue that may be used to fund general
governmental services, such as: addressing homelessness, enhancing public safety,
improving emergency response times, creating safe routes to schools, reducing fatal
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pedestrian and bike accidents, improving city streets and sidewalks, and maintaining
clean and safe parks; and
WHEREAS, the measure is accompanied by an advisory measure that allows
voters to express their preference that if the PFT measure is approved, then should half
of the additional revenue from the PFT increase be used to support public safety in Santa
Monica, including attracting and retaining well-trained police officers and firefighters,
improving crime and homelessness prevention services, and increasing police patrols
and enhancing emergency medical response in neighborhoods and public areas,
including downtown, the pier, and the beach; and
WHEREAS, under applicable law, the City Council of the City of Santa Monica
must present a proposed increase to the PFT to the electorate of the City of Santa Monica
for adoption by majority vote of the electorate; and
WHEREAS, pursuant to California Elections Code Section 10403, the City Council
has previously requested that the County of Los Angeles consent and agree to the
consolidation of all aspects of a General Municipal Election with the Statewide General
Election scheduled for Tuesday, November 5, 2024, for the purpose of electing members
of the Santa Monica City Council, the Santa Monica Rent Control Board, the Santa
Monica-Malibu Unified School District, and the Santa Monica Community College
District.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AND PROCLAIM AS FOLLOWS:
SECTION 1. At the General Municipal Election called for November 5, 2024, the
following measure shall be submitted to the qualified electors of the City of Santa
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Monica:
MEASURE " ":
To enhance public safety, create safe
routes to school to protect children, lower
the risk of fatal traffic accidents, and
maintain other essential city services,
shall the measure increasing the City of
Santa Monica Parking Facility Tax by 8%
for users including visitors and tourists,
causing no additional cost in City-owned
lots and structures (including downtown
and the beach) because of a partial City
exemption, generating approximately
$6,700,000 annually until ended by
voters, be adopted?
YES ________
NO _________
SECTION 2. At the General Municipal Election called for November 5, 2024, the
following measure shall be submitted to the qualified electors of the City of Santa Monica:
MEASURE " ":
ADVISORY VOTE ONLY: If Measure __
is enacted, should at least half of the
additional revenue raised be used to
protect public safety in Santa Monica,
including attracting and retaining well-
trained police officers and firefighters,
improving crime and homelessness
prevention services, and increasing
police patrols and enhancing emergency
medical response in neighborhoods and
public areas, including downtown, the
pier, and the beach?
YES ________
NO _________
SECTION 3. The City Clerk shall file a certified copy of this resolution with the
Board of Supervisors and with the county election department of the County of Los
Angeles.
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SECTION 4. The vote requirement for either measure to pass is a majority
(50%+1) of the votes cast.
SECTION 5. The City of Santa Monica recognizes that additional costs may be
incurred by the County by reason of the addition of these measures to the ballot and
agrees to reimburse the County for any additional costs.
SECTION 6. The City Clerk shall transmit to the City Attorney, in accordance with
applicable law, copies of both measures. The City Attorney shall prepare an impartial
analysis of the measures, which shall not exceed 500 words in length each. The
impartial analyses shall be filed by the date set by the City Clerk for the filing of primary
arguments. ln accordance with applicable law, not less than 10 calendar days before
the City Clerk submits the official election materials for printing, the City Clerk shall
make a copy of all applicable election materials available for public examination in the
City Clerk's office.
SECTION 7. The City Council authorizes its members, as follows, to file written
arguments for or against the measures described above, which are contained in Exhibit
1 (Parking Facility Tax Measure) and Exhibit 2 (Parking Facility Tax Advisory Measure),
which are incorporated by reference herein:
Parking Facility Tax Measure
FOR:
AGAINST:
Parking Facility Tax Advisory Measure
FOR:
AGAINST:
Councilmember Jesse Zwick
None
Councilmember Jesse Zwick
None
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All written arguments filed by any person in favor of, or against any measure,
including any rebuttal arguments, shall be accompanied by the names and signatures of
the persons submitting the argument as required by applicable law, and any names,
signatures and arguments may be filed until the time and date fixed by the City Clerk in
accordance with applicable law, after which no change may be submitted to the City
Clerk unless permitted by law.
SECTION 8. The City Clerk shall cause the text of the measures, which is
contained in Exhibit 1 (Parking Facility Tax Measure) and Exhibit 2 (Parking Facility Tax
Advisory Measure), together with the City Attorney impartial analyses, and any
arguments for or against the measures, as well as any rebuttal, to be mailed to all
qualified voters with the sample ballot. In addition to other notices and publications
required by law, the City Clerk, not less than forty (40) days and not more than sixty (60)
days before the General Municipal Election, shall cause the text of the measures to be
published once in the official newspaper and in each edition thereof during the day of
publication. The City Clerk is authorized to give such notices and to fix such times and
dates as are required by law or which are appropriate to properly conduct the election.
SECTION 9. The provisions of Resolution Numbers 11591 and 11592 are
referred to and incorporated into this resolution for more particulars concerning the
conduct of the General Municipal Election to be held on November 5, 2024, and in all
respects the election shall be held and conducted as provided for by applicable law. The
City Clerk is authorized and directed to procure and furnish any official ballots, notices,
printed materials and all supplies or equipment that may be necessary in order to
properly and lawfully conduct the election.
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SECTION 10. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
________________________________
Douglas Sloan, City Attorney
Exhibit 1 – Text of Parking Facility Tax Measure
Exhibit 2 – Text of Parking Facility Tax Advisory Measure
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Exhibit 1 – Parking Facility Tax Measure
WHEREAS, this measure shall be known as the “2024 Parking Facility Tax
Measure” (“Measure”); and
WHEREAS, Chapter 6.70 of the Santa Monica Municipal Code contains the City’s
parking facility tax (the “PFT”); and
WHEREAS, the PFT is a general tax imposed for general revenue purposes; and
WHEREAS, the PFT is imposed on any Operator that charges an Occupant a
Parking Fee in exchange for using a Parking Facility; and
WHEREAS, Santa Monica Municipal Code section 6.70.020 currently sets the PFT
rate at 10% of the total Parking Fee charged by an Operator; and
WHEREAS, the PFT was last amended in 1995 by Ordinance No. 1789 (CCS);
and
WHEREAS, 90% of the parking lots and structures owned by the City are in the
Coastal Zone; and
WHEREAS, the parking rates approved by the Coastal Commission are inclusive
of the City’s 10% PFT rate; and
WHEREAS, the Coastal Commission has taken the position that the City’s parking
rates in the Coastal Zone are subject to Coastal Commission approval and require a
coastal development permit prior to increasing rates; and
WHEREAS, the City’s advertised parking rates at City-owned lots and structures
are inclusive of the City’s existing PFT rate; and
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WHEREAS, with voter approval, the City could increase the PFT rate, while
maintaining the existing parking rates in City-owned lots and structures at the existing
levels; and
WHEREAS, increasing the PFT rate while maintaining the existing parking rates
in City-owned lots and structures would be revenue neutral because any increase in PFT
revenue would be offset by an equal decline in parking revenue; and
WHEREAS, the City desires to partially exempt City-owned lots and structures
from the PFT rate increase proposed by this measure out of administrative convenience
and to promote public access to the beach; and
WHEREAS, many residents live in the City of Santa Monica because the City
invests in community priorities, offers extensive services and programs that substantially
enhance the quality of life of its residents; and
WHEREAS, an additional locally-controlled revenue source is needed to restore
and enhance Santa Monica’s essential city services; and
WHEREAS, the City desires to raise the PFT rate to 18%; and
WHEREAS, the revenue from the increasing the PFT rate is estimated to raise an
additional $6,700,000 in general fund revenue that may be used to fund general
governmental services, such as: addressing homelessness, enhancing public safety,
improving emergency response times, creating safe routes to schools, reducing fatal
pedestrian and bike accidents, improving city streets and sidewalks, and maintaining
clean and safe parks.
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NOW, THEREFORE:
SECTION 1. As of January 1, 2025 (the “Effective Date”), Chapter 6.70 of the
Santa Monica Municipal Code is amended to read as follows (new language underlined,
proposed deletions in strikethrough):
Chapter 6.70. PARKING FACILITY TAX
§ 6.70.010. Definitions.
Except where the context otherwise requires, the definitions in this Section govern
the construction of this Chapter.
City-owned Parking Facility. “City-owned Parking Facility” means a Parking Facility
owned by the City of Santa Monica, irrespective of whether the City uses a managing
agent, or other designated third party, to operate the Parking Facility.
Motor vehicle. "Motor vehicle" means every self-propelled vehicle operated or
suitable for operation on the highway.
Occupancy. "Occupancy" means the use or possession or the right to the use or
possession of any space for the parking of a motor vehicle or any other purpose in a
parking facility.
Occupant. "Occupant" means a person who, for a consideration, uses, possesses
or has the right to use or possess any space for the parking of a motor vehicle in a parking
facility under any lease, concession, permit, right of access, license to use or other
agreement or otherwise, whether voluntarily or involuntarily. Occupant shall be deemed
to include any person required to pay any valet or service labor charge in connection with
the parking of motor vehicles on public or private property and any person required to pay
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a charge for the occupancy of parking space by another person by means of validation
or otherwise.
Operator. "Operator" means the person who conducts a parking facility, whether in
the capacity of owner, lessee, mortgage in possession, licensee, valet or other service
supplier or any other capacity. When the operator performs his or her functions through a
managing agent of any type or character other than an employee, the managing agent
shall also be deemed an operator for purposes of this Article and shall have the same
duties and liabilities as his or her principal. When the managing agent collects parking
fees and tax on behalf of his or her principal and deposits the same into the principal's
account in a financial institution, such principal shall be responsible for reporting and
remitting the tax to the City. It shall be the duty of the managing agent to provide the
Director of Finance with the name and address of each principal who will be responsible
for reporting and remitting the tax to the City. Compliance with the provisions of this Article
by either the principal or the managing agent shall be considered to be compliance by
both. A person who qualifies as an operator shall not, by reason of being exempt from the
tax imposed in this Article, be exempt from the duties and liabilities of an operator imposed
under this Article.
Parking meter. "Parking meter" means any device, which, when the recording
device thereof is set in motion, or immediately following the deposit of any coin, shall
register the period of time that any motor vehicle may be parked adjacent thereto.
Parking facility. "Parking facility" means any outdoor space or uncovered plot, place,
street, lot, parcel, yard or enclosure, or any portion thereof, or any building or structure,
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or any portion thereof, where or in which a motor vehicle may be parked, stored, housed
or kept, for which any charge is made.
Parking fee. "Parking fee" means the consideration charged, whether or not
received, for the occupancy or use of space in a parking facility valued in money, whether
received in money, goods, labor or otherwise, including all receipts, cash, credits and
property and services of any kind or nature, without any deduction therefrom. The parking
fee shall be deemed to include the total charges required to be paid by an occupant,
including, but not limited to, any valet or service labor charge in connection with the use
or occupancy of parking space on public or private property. Nothing shall be construed
to mean that a parking fee is charged to the occupant of space in a parking facility for the
sale of petroleum products, automobile parts or other tangible personal property, the
rendering of services, including car wash services, totally unconnected with the use or
occupancy of parking space, or where parking space is provided to the occupant as a
compliment from the operator and where no consideration is charged to or received from
any other person.
Person. "Person" means any natural person, partnership, joint venture, joint stock
company, corporation, estate, trust, business trust, receiver, administrator, executor,
assignee, trustee in bankruptcy, firm, company, association, club, syndicate, society,
municipal corporation, the State of California, political subdivision of the State of
California, the United States, instrumentality of the United States, or any group or
combination acting as a unit, whether mutual, cooperative, fraternal, nonprofit or
otherwise.
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§ 6.70.020. Parking facility tax.
On or after January 1, 2025 July 1, 1993, there is imposed a tax upon every person
in the City who occupies a parking facility or who is obligated to pay a parking fee. Subject
to the exemption in section 6.70.025, The the tax imposed by this Chapter shall be at the
rate of ten eighteen (18%) percent of the total parking fee charged by the operator for use
of the parking facility.
§ 6.70.025. Partial Exemption on City-Owned Parking Facilities
On or after January 1, 2025, City-owned Parking Facilities shall be exempt from
8% of the tax imposed by section 6.70.020.
§ 6.70.030. Collection.
(a) On or after the effective date of this Chapter, every operator or person
receiving any payment for use of a parking facility shall collect the amount of the
tax imposed by this Chapter from the person paying the parking fee or who is
obligated to pay the parking fee.
(b) Unless otherwise prohibited by law, every person occupying a parking
space in a parking facility shall be required to pay the tax imposed by this Chapter
to the operator or the person collecting the parking fee. If the parking fee is paid in
installments, or if an amount paid is less than the full amount of the parking fee
and tax accrued at the time of payment, a proportionate share of the tax shall be
deemed to have been paid with each such partial payment or installment.
(c) The taxes required to be collected pursuant to this Chapter shall be
deemed to be held in trust by the operator or the person required to collect the tax
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on behalf of the City until the taxes are remitted to the City as required by this
Chapter and shall constitute a debt owed by the operator to the City.
§ 6.70.040. Reports and tax remittance.
(a) The person or operator collecting or obligated to collect any parking
facility tax pursuant to this Chapter shall prepare a report upon a form prescribed
by the Director of Finance. The report shall include the amount of parking fees
collected and the amount of the tax collected pursuant to this Chapter. Additionally,
the report shall include such information as is required by the Director of Finance
to carry out the purposes of this Chapter.
(b) The person or operator collecting or obligated to collect any parking
facility tax shall remit to the City the parking facility tax together with the report
prepared pursuant to subsection (a) of this Section.
(c) The reports and tax remittances of parking facility taxes shall be
delinquent if not paid on or before the twenty-fifth day following the end of each
reporting quarter as specified herein, and shall cover the reporting quarter just
ended. For purposes of this Chapter, the reporting quarters are as follows:
December 1st through February 28th/29th, March 1st through May 31st, June 1st
through August 31st, September 1st through November 30th.
§ 6.70.050. Interest and penalties.
If any person fails or refuses to remit to the Director of Finance the tax required to
be collected by this Chapter, there shall be added to such tax a penalty of ten percent of
the amount of the tax due for each thirty days that the tax is unpaid. If the tax due remains
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unpaid for a period of ninety days or longer, in addition to the penalty prescribed by this
Section, the person owing the tax shall pay to the City interest on the amount due from
the date the tax was due, in the amount determined by the Director of Finance as equal
to the City's actual rate of return on its invested funds.
§ 6.70.060. Failure to collect and report tax.
If any person shall fail or refuse to collect the parking facility tax or to make, within
the time provided in this Chapter, any report or remittance required by this Chapter, the
Director of Finance shall proceed in such manner as he or she may deem best to obtain
facts and information on which to estimate the tax due. As soon as the Director of Finance
shall procure such facts and information as he or she is able to obtain upon which to base
the assessment of any tax payable by any person who has failed or refused to collect the
same and to make such report or remittance, the Director of Finance shall proceed to
determine and assess against such person the tax and penalties provided for by this
Chapter and shall notify such person by mail sent to his or her last known place of address
of the total amount of such tax including interest and penalties, and the total amount
thereof shall be payable within ten days from the date of such notice.
§ 6.70.070. Records.
It shall be the duty of every person liable for the collection and payment to the City
of any tax imposed by this Chapter to keep and preserve, for a period of two years, such
suitable records as may be necessary to determine the amount of such tax as he or she
may have been liable for the collection of and payment to the City, which records the
Director of Finance shall have the right to inspect at all reasonable times.
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§ 6.70.080. Cessation of business.
Whenever any person required to collect and pay to the City a tax under this
Chapter shall cease to operate or otherwise dispose of his or her business, any tax
payable hereunder to the City shall become immediately due and payable and such
person shall immediately make a report and pay the tax due.
§ 6.70.090. Exceptions.
No tax shall be payable hereunder in any of the following instances:
(a) On the parking fee paid by any federal, State of California, or City of
Santa Monica, official or employees when on official business provided that a tax
exempt certificate is executed no later that the time when payment of the parking
fee is due, on a form to be provided by the Director of Finance.
(b) On the parking fee deposited in any parking meter owned or operated
by the City.
(c) On the parking fee paid for any City preferential parking permit.
(d) On the parking fee paid as part of any residential dwelling unit lease,
rental agreement or obligation, including on the parking fee paid as part of any
hotel, motel or other lodging facility occupancy, but only when the length of the
occupant's stay exceeds thirty consecutive days in the hotel, motel or other lodging
facility.
§ 6.70.100. Penalty.
Any person violating or failing to comply with any of the provisions of this Chapter,
shall upon conviction thereof, be guilty of a misdemeanor and shall, in addition to any jail
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sentence, be fined not more than five hundred dollars. Each violation of this Chapter shall
constitute a separate offense. Any conviction for violation of this Chapter shall not relieve
any person from the payment, collection or remittance of the parking facility tax as
provided in this Chapter.
§ 6.70.110. Director of Finance - Powers and duties.
It shall be the duty of the Director of Finance to ascertain the name of every person
operating a parking facility in the City of Santa Monica, liable for the collection of the tax
levied by this Chapter, who fails, refuses or neglects to collect the tax or to make, within
the time provided by this Chapter, the reports or remittances required herein. In addition
to any other remedy or proceeding, the Director of Finance is authorized to request that
the City Attorney commence any proceeding as may be appropriate to obtain payment of
any tax, including penalty and interest, as may be due the City under this Chapter.
SECTION 2. Any provision of the Santa Monica Municipal Code inconsistent with
the provisions of this measure, to the extent of such inconsistencies and no further, is
hereby repealed or modified to that extent necessary to effect the provisions of this
measure.
SECTION 3. If any section, subsection, sentence, clause, or phrase of this
measure is for any reason held to be invalid or unconstitutional by a decision of any court
of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this measure. The City Council hereby declares that it would have placed this
measure and the resulting Santa Monica Municipal Code amendment, and the voters
declare that they would have adopted this measure and the resulting Santa Monica
Municipal Code amendment, and each and every section, subsection, sentence, clause,
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or phrase not declared invalid or unconstitutional, without regard to whether any portion
may be subsequently declared invalid or unconstitutional.
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EXHIBIT 2 – PARKING FACILITY TAX ADVISORY MEASURE TEXT
CITY COUNCIL PROPOSED ADVISORY MEASURE ASKING WHETHER HALF OF
THE ADDITIONAL REVENUES FROM INCREASING THE CITY PARKING FACILITY
TAX BY 8% SHOULD BE USED TO PROTECT PUBLIC SAFETY IN SANTA MONICA
This Advisory Measure Does Not Increase Taxes. It is an Advisory Measure which
states the intent of the Voters in the City of Santa Monica that, if the Parking Facility
Tax Measure is enacted, then it is the voter’s preference that at least half of any
increased revenues should be spent on programs and services to protect and
enhance public safety, including:
Attracting and retaining well-trained police officers and firefighters; or
Improving crime and homelessness prevention services; or
Increasing police patrols and enhancing emergency medical response in
neighborhoods and public areas, including downtown, the pier and the beach.
If this Advisory Measure is passed by the Voters and the Parking Facility
Tax Measure does not pass, there will be no change to existing policy.
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Adopted and approved this 23rd day of July, 2024.
__________________________
Phil Brock, Mayor
I, Nikima S. Newsome, City Clerk of the City of Santa Monica, do hereby certify
that Resolution No. 11607 (CCS) was duly adopted at a meeting of the Santa Monica
City Council held on the 23rd day of July, 2024, by the following vote:
AYES: Councilmembers de la Torre, Torosis, Davis, Parra, Zwick
Mayor Pro Tem Negrete, Mayor Brock
NOES: None
ABSENT: None
ATTEST:
_____________________________________
Nikima S. Newsome, City Clerk
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