HomeMy WebLinkAboutAgenda - Agenda Packets - Regular Meeting 8/5/2014
AGENDA
JOINT REGULAR MEETING
OF THE SAN JACINTO CITY COUNCIL AND THE SUCCESSOR AGENCY TO
THE CITY OF SAN JACINTO REDEVELOPMENT AGENCY
August 5, 2014, 6:30 p.m.
625 South Pico Avenue
San Jacinto Community Center, San Jacinto, CA 92583
1. ORGANIZATION
1.1 Call to Order
1.2 Roll Call
1.3 Invocation
1.4 Pledge of Allegiance
1.5 Special Presentations
1.5.1 Recognition of 4th of July Parade Winners
1.6 MAYOR/COUNCIL MEMBER REPORTS/DISCUSSIONS
2. PUBLIC COMMENTS
Now is the time for the public to address the Council on any subject within the jurisdiction of the City
Council not listed on the agenda. A limitation of three (3) minutes shall be set for each person desiring
to address the City Council.
2.1 City Manager’s Report on previous month’s public comments
3. JOINT CONSENT CALENDARS (SECTIONS 3A AND 3B)
The matters listed under Consent Calendars are considered routine and will be enacted by one motion
by City Council Members in the form listed. There will be no separate discussion on these items prior to
the motion unless members of the City Council, staff or the public requests a specified item be removed
and/or discussed. If an item is pulled, it will be heard after the balance of the Consent Calendar has
been voted on.
3A CONSENT CALENDAR - CITY COUNCIL
3A.1 Continuance of the Proclamation of the Local State of Emergency due to
the Severe Winter Storms that began on April 29, 2014 / Approve / City
Clerk
City Council Agenda
August 5, 2014
Page 2 of 3
3A.2 Waiver of Full Reading of Ordinance(s), and Reading by Title Only /
Approve / City Clerk, City Attorney
3A.3 Assessment District 2003-1 (AD 2003-1) Slurry Seals / Approve /
Finance Director
3A.4 Minutes of July 15, 2014 - Regular Meeting / Approve / City Clerk
3A.5 Second Reading (Adoption) of Ordinance 14-10 Repealing Chapter 9.38
of the San Jacinto Municipal Code Regarding Loitering by Registered
Sex Offenders. / Approve / City Attorney
3A.6 Treasurer's Report at June 30, 2014 / Approve / City Treasurer
3A.7 Resolution No. 3528 - Amending section 5.1 of the City Council
Handbook / Approve / City Manager
3B CONSENT CALENDAR - SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO
4. PUBLIC HEARING
5. STAFF REPORTS
At the end of the scheduled City Department items, anyone wishing to discuss a consent calendar item
should come forward upon invitation of the Mayor; state their name, address, and the consent calendar
item number pulled. Speakers should limit comments to three (3) minutes.
5.1 Consider Second Reading of 6.5% Utility Users Tax Ordinance (Ordinance No.
14-09) and Placement of the Ordinance on the November 4, 2014 Ballot. /
Approve / City Manager
6. CLOSED SESSION
6.1 CLOSED SESSION - CITY COUNCIL
6.1.1 CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of Case: City of San Jacinto v. Ocean Springs LLC; Riverside
County Superior Court Case No. 10010048
6.2 CLOSED SESSION - SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN JACINTO
7. ADJOURNMENT
City Council Agenda
August 5, 2014
Page 3 of 3
If you challenge any action of the City Council in court, you may be limited to raising only those issues you or
someone else raised at the public hearing described in this notice, or in written correspondence delivered to
the City Council (c/o the City Clerk) at, or prior to, the public hearing.
CHALLENGE TO LAND USE DECISIONS: Any person seeking to challenge a decision regarding land use
made by the City Council as a result of a proceeding in which by law a hearing is required to be given, shall
be required to commence that action 90 days following the date on which the decision of the City Council
becomes final as provided in Code of Civil Procedure Section 1094.6. Please refer to Code of Civil Procedure
Section 1094.6 to determine how to calculate when a decision becomes final.
It is the intention of the City of San Jacinto to comply with the Americans with Disabilities Act (ADA) in all
respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need
special assistance beyond what is normally provided, the City will attempt to accommodate you in every
reasonable manner. Please contact City Hall at (951) 537-6358, at least 48 hours prior to the meeting to
inform us of your particular needs and to determine if accommodation is feasible.
Any writing related to an agenda item for an open session of a regular meeting of the City Council that is
distributed less than 72 hours prior to the meeting will be made available for public inspection at the City
Clerk's office, located at 595 South San Jacinto Avenue, San Jacinto, California, and at the regular meeting
location - City of San Jacinto Community Center, 625 South Pico Avenue, San Jacinto, California - at the time
the writing is distributed to a majority of the City Council
DOCUMENTS RELATED TO OPEN SESSION AGENDAS (SB 343) -- Any public record,
relating to an open session agenda item, that is distributed within 72 hours prior to the
meeting is available for public inspection at the public counter located in the Administration
Building of City Hall, 595 S San Jacinto Avenue, San Jacinto, CA 92583
I, Richard Miller, City Clerk of the City of San Jacinto, do hereby certify that I caused to be posted the foregoing
agenda this 31st Day of July, 2014, as required by law.
Richard Miller, City Clerk
August 5, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Rick Miller, City Clerk
SUBJECT: Continuance of the Proclamation of the Local State of Emergency due to
the Severe Winter Storms that began on April 29, 2014
RECOMMENDATION:
Staff recommends that the City Council, by motion, approve to the continuance of the
Proclamation of the Local State of Emergency due to the Severe Wind Storms that
began on April 29, 2014.
DISCUSSION:
On April 30, 2014 the Director of Emergency Services/City Manager proclaimed the
existence of a local emergency resulting from the severe and damaging winter storms that
began on or about 8:00 a.m. on April 29, 2014. Government Code section 8630 requires
the City Council to ratify any local emergency proclaimed by a local official such as the
Director of Emergency Services/City Manager within seven days. Thereafter, the City
Council shall at least once every 30 review the need for continuing the local emergency.
ALTERNATIVES:
1) Consent to the continuance of the Proclamation of the Local State of Emergency
(Staff Recommendation).
2) Do Not Consent to the continuance.
FISCAL IMPACT:
The City’s ability to obtain or continue to receive federal, state or regional
disaster/emergency relief funding may be impacted if the City Council does not Consent
to continue the proclamation of the local state of emergency. Substantial budgetary
impacts are apparent for recovery efforts to include substantial employee overtime
salaries; purchases of materials, supplies and equipment; use of private
contractors/force labor; and other repairs to city right-of-way facilities (Preliminary
estimates range from thirty to eighty thousand dollars). Budgetary assistance and
reimbursement is available from Federal Emergency Management Agency (F.E.M.A.)
PACKET PAGE: 1
AGENDA ITEM 3A.1
for related costs for limited recovery efforts to critical infrastructure including: electrical,
power, telecommunications, water supply, public safety, and transportation.
ATTACHMENTS:
· Copy of Resolution Number 3506
PACKET PAGE: 2
AGENDA ITEM 3A.1
PACKET PAGE: 3AGENDA ITEM 3A.1
PACKET PAGE: 4AGENDA ITEM 3A.1
August 5, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Rick Miller, City Clerk
Jeff Ballinger, City Attorney
SUBJECT: Waiver of Full Reading of Ordinance(s), and Reading by Title Only
RECOMMENDATION:
Staff recommends that the City Council, by motion, waive the full reading of any and all
ordinances on this meeting’s agenda, and authorize their reading by title only.
BACKGROUND:
Government Code Section 36934 requires that all ordinances shall be read in full either
at the time of their introduction or their passage. However, Government Code Section
36934 allows the waiver of this requirement by regular motion adopted by majority vote
if the title of the ordinance is read.
This waiver can be accomplished at the time of each ordinance action, or as a standing
waiver, accomplished as a consent calendar motion. In order to stream-line the process
for the passage of ordinances, the City Attorney and staff propose the second option,
which is the waiver of any and all ordinances on this agenda.
ALTERNATIVES:
Approval: Approve the addition of the attached language to all future agendas of the
City Council, thus waiving the full reading of all future ordinances.
Denial: Do not approve the agenda language and, instead, before the passage of any
ordinance and after the reading of its title, make a motion that must be adopted by
majority vote that allows a waiver of the full reading.
FISCAL IMPACT:
None
PACKET PAGE: 5
AGENDA ITEM 3A.2
August 5, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Thomas Prill, Finance Director
SUBJECT: Assessment District 2003-1 (AD 2003-1) Slurry Seals
RECOMMENDATION:
Staff recommends that the City Council, by motion, approve a budget adjustment for the
Fiscal Year 14/15 Slurry Seals that are scheduled for various AD 2003-1 benefit zones.
BACKGROUND:
AD 2003-1 is annually levied upon properties in benefit zones that have annexed into
the district. The levies are intended to provide for ongoing street maintenance over a
36-year period. Maintenance items such as slurry seals, grind and overlays, and
remove and reconstructs are scheduled over specific intervals. In fiscal year 14/15, 16
of these benefit zones are at or beyond their 4-year schedule for a slurry seal.
DISCUSSION:
On July 15, 2014, the City Council authorized an interim continuing appropriation, the
amount of which will not fully fund these scheduled slurry seals. The proposed slurry
seals are funded from each AD 2003-1 zone fund and do not impact the General Fund.
In an effort to complete the slurry seals as scheduled and to prevent unfavorable
deterioration of these in-tract streets, the City Engineer proposes to go out to bid for
these services in the fall, when the conditions are favorable for this type of maintenance
to occur.
FISCAL IMPACT:
If approved, this action would increase appropriations in the AD 2003-1 zones in the
total amount of $748,362. A schedule of each individual fund is attached. There is no
impact to the General Fund.
ATTACHMENTS:
Schedule of AD 2003-1 slurry seal budget proposal
PACKET PAGE: 7
AGENDA ITEM 3A.3
Assessment District 2003-1 - Street Maintenance
Budget Adjustment Proposal
Zones Scheduled for Slurry Seal
Fund #Zone #Tract #Description
14/15
Estimate
50%
13/14
Budget
14/15
Budget Adj
Requested
14/15
Estimate
50%
13/14
Budget
14/15 Budget
Adj
Requested
Total
Request
701 1 28858 Sunset Ranch 33,484 33,484 3,348 3,348 36,832
702 2 30644-1 Goldencrest 63,062 63,062 6,306 6,306 69,368
703 3 30878-1 Park Meadows 45,495 17,813 27,683 4,550 1,781 2,768 30,451
704 4 31035 Goldencrest 40,987 40,987 4,099 4,099 45,086
705 5 29859 Summerfield Ranch 37,879 18,115 19,765 3,788 1,811 1,976 21,741
706 6 31036 Durango 66,441 66,441 6,644 6,644 73,085
707 7 29917 Park Hill 56,604 56,604 5,660 5,660 62,264
709 9 30944, -1 Stallion's Crossing 53,998 53,998 5,400 5,400 59,398
710 10 30462 Meadowbrook 77,463 37,045 40,419 7,746 3,704 4,042 44,460
713 13 30603 Remington/Lyndon 70,975 33,942 37,034 7,098 3,394 3,703 40,737
714 14 30335 San Jacinto Ranch 32,725 32,725 3,273 3,273 35,998
717 17 31246/33106 Creekside 56,532 56,532 5,653 5,653 62,185
718 18 31794 Belicia Ranch 28,284 13,526 14,759 2,828 1,353 1,476 16,234
720 20 31296/30942 Cottonwood Ranch 40,580 40,580 4,058 4,058 44,638
721 21 32155 Tamarisk 85,118 85,118 8,512 8,512 93,630
733 33 32499 Meadowbrook II 28,829 17,689 11,141 2,883 1,769 1,114 12,255
TOTALS 818,456 138,127 680,329 81,846 13,813 68,033 748,362
Slurry Seal Construction Adminstration
PACKET PAGE: 9AGENDA ITEM 3A.3
August 5, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Rick Miller, City Clerk
SUBJECT: Minutes of July 15, 2014 - Regular Meeting
RECOMMENDATION:
Staff recommends that the City Council, by motion, approve the draft minutes of the July
15, 2014 Regular Meeting.
ATTACHMENTS
· Draft Minutes of the July 15, 2014 Regular Meeting
PACKET PAGE: 11
AGENDA ITEM 3A.4
ACTION MINUTES (Draft)
JOINT REGULAR MEETING
OF THE SAN JACINTO CITY COUNCIL AND THE SUCCESSOR AGENCY TO
THE CITY OF SAN JACINTO REDEVELOPMENT AGENCY
July 15, 2014, 6:30 p.m.
625 S. Pico Ave
San Jacinto Community Center, San Jacinto, CA 92583
1. ORGANIZATION
1.1 Call to Order
Mayor Alonso Ledezma called the Regular Meeting of the San Jacinto City
Council and the Successor Agency to the City of San Jacinto Redevelopment
Agency to order at 6:30 p.m.
1.2 Roll Call
Present: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Absent: None
1.3 Invocation
Pastor Leo Pagliei gave the invocation.
1.4 Pledge of Allegiance
Mayor Pro-Tem Crystal Ruiz led the Pledge of Allegiance
1.5 Special Presentations
1.5.1 Presentation of Scholarships to High School Students
Mayor Ledezma and County Supervisor Jeff Stone presented the
students with Certificates and Scholarships for their academic
achievement.
1.6 MAYOR / COUNCIL MEMBER REPORTS / DISCUSSIONS
Councilmember’s gave their reports.
2. PUBLIC COMMENTS:
Public Speakers:
· Jim Pangrazzi
PACKET PAGE: 13
AGENDA ITEM 3A.4
Action Minutes
July 15, 2014
_______________________________________________________________________________________Page 2 of 6
3. CONSENT CALENDAR
3A CONSENT CALENDAR - CITY COUNCIL
3A.1 Continuance of the Proclamation of the Local State of
Emergency due to the Severe Winter Storms that began
on April 29, 2014 / Approve / City Clerk
3A.2 Waiver of Full Reading of Ordinance(s), and Reading by
Title Only / Approve / City Clerk, City Attorney
3A.3 Resolution of Intention to Annex Territory into
Community Facilities District No. 2003-1 and to
Authorize the Levy of Special Taxes Therein / Approve /
City Manager, City Attorney
3A.4 Minutes of June 17, 2014 - Regular Meeting / Approve /
City Clerk
3A.5 Adoption of a Resolution Dedicating And Accepting
Certain City-Owned Property For Public Street And
Utility Purposes to Become and Be Known as Second
Street. / Approve / Assistant City Manager
3A.6 Final Tract 34586 - Kirby Village / Approve / City
Engineer
3A.7 Treasurer's Report at May 31, 2014 / Approve / City
Treasurer
3A.8 Warrants and Disbursements - June 2014 / Approve /
Finance Director
3A.9 Resolution No. 3518 / Authorization to Participate in the
County of Riverside Urban County Consolidated
Planning Programs for Federal Fiscal Years 2015-2016,
2016-2017, and 2017-2018 and Approval of a
Cooperation Agreement with the County of Riverside /
Approve / Development Director
3A.10 Ramona Expressway Phase 2 - Eagle to Lake Park
Construction Contract / Approve / City Engineer
PACKET PAGE: 14
AGENDA ITEM 3A.4
Action Minutes
July 15, 2014
_______________________________________________________________________________________Page 3 of 6
3A.11 Adoption of an Ordinance Repealing Chapter 9.38 of the
San Jacinto Municipal Code Regarding Loitering by
Registered Sex Offenders. / Approve / City Attorney
Council Member Andrew Kotyuk abstained from warrant numbers: 109248
and 109278 on Item 3A.8.
M/S/C (Bartel/Ruiz) – moved to approve the Consent Calendar. Motion
carried 5/0.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
4. PUBLIC HEARING
4.1 Proposed Resolution Confirming the Collection and Assessment of
Unpaid Nuisance Abatement Costs and Administrative Citations on
the County Property Tax Roll for Fiscal Year 2014-2015
Finance Director Tom Prill presented the staff report.
Mayor Ledezma opened the Public Hearing at 7:09
There were no requests to speak.
Mayor Ledezma closed the Public Hearing at 7:10
M/S/C (Bartel / Kotuk) – moved to approve item 4.1 as presented. Motion
carried 5/0.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
4.2 Levy of Assessments for Landscaping, Lighting and Park District No.
1 for fiscal year 2014-2015
Items 4.2 and 4.3 were heard concurrently:
4.3 Proposed Resolution for LLPD No. 2 Fiscal Year 2014-2015 Annual
Levy of Assessments
Finance Director Tom Prill presented the staff report.
PACKET PAGE: 15
AGENDA ITEM 3A.4
Action Minutes
July 15, 2014
_______________________________________________________________________________________Page 4 of 6
Mayor Ledezma opened the Public Hearing at 7:11
There was no one who wished to speak.
Mayor Ledezma closed the Public Hearing at 7:12
M/S/C (Bartel / Kotuk) – moved to approve items 4.2 and 4.3 as presented.
Motion carried 5/0.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
5. STAFF REPORTS
5.1 Authorization to place a Ballot Measure in front of the voters requesting
the consideration of a 6.5% Utility Users Tax
City Manager Tim Hults presented the staff report.
Public Speakers:
· Calvin Smith
· Steve Di Memmo
· Dr. Sharon Sohmer
· Mark Sohmer
· Mark Denny
· Jim Pangrazzi
· Roberto Guadamuz
· John Norman
· Bruce Malone
M/S/C (Ruiz/Bartel) – moved to approve item 5.1 as presented. Motion
carried 5/0.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
5.2 Adoption of FY 2014-15 Fiscal Year Budget
City Manager Hults presented the staff report.
Public Speakers:
· Jim Pangrazzi
PACKET PAGE: 16
AGENDA ITEM 3A.4
Action Minutes
July 15, 2014
_______________________________________________________________________________________Page 5 of 6
M/S/C (Kotyuk/Miller) – continuing appropriation Resolution with the line
items eliminated that were outlined by Finance Director Prill, the
Capital Projects list will remain intact, as stated. Motion carried 5/0.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
5.3 Adoption of FY 2014-15 Fiscal Year Budget
Finance Director Prill presented the staff report for the successor Agency
Budget.
M/S/C (Miller / Kotyuk) – moved to approve item 5.3 as presented. Motion
carried 5/0.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
5.4 Adopt Resolution Establishing the Appropriations Limit From Proceeds
of Taxes for Fiscal Year 2014-2015
Finance Director Prill presented the Staff Report.
M/S/C (Kotyuk / Bartel) – moved to approve item 5.4 as presented. Motion
carried 5/0.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
Mayor Ledezma recessed the Regular Meeting at 9:34 p.m. and reconvened in Closed
Session at 9:37 p.m.
PACKET PAGE: 17
AGENDA ITEM 3A.4
Action Minutes
July 15, 2014
_______________________________________________________________________________________Page 6 of 6
6. CLOSED SESSION
6.1 CLOSED SESSION - CITY COUNCIL
6.1.1 CONFERENCE WITH LABOR NEGOTIATORS
Agency Negotiators: Tim Hults, City Manager & Roger Crawford,
Deputy City Attorney
Represented Parties: San Jacinto Management Association &
Service Employees International Union, Local 721
No Reportable Action.
6.1.2 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: 2249 W. Ramona Expressway, San Jacinto CA
(Northwest corner of Sanderson and Ramona Expressway; APN
430-120-012)
Agency negotiator: Sharon Paisley, Development Director
Negotiating parties: John and Yanita Spyksma
Under negotiation: Price and terms of payment
No Reportable Action
6.2 CLOSED SESSION - SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN JACINTO
7. ADJOURNMENT
With no further business before the City Council, Mayor Alonso Ledezma
adjourned the Regular Meeting of the City Council at 10:05 p.m.
City of San Jacinto
______________________
Alonso Ledezma, Mayor
ATTEST:
___________________
Richard Miller, City Clerk
Approved as read: _______
Approved as amended: ____
PACKET PAGE: 18
AGENDA ITEM 3A.4
August 5, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Jeff Ballinger, City Attorney
SUBJECT: Second Reading (Adoption) of Ordinance 14-10 Repealing Chapter 9.38
of the San Jacinto Municipal Code Regarding Loitering by Registered Sex
Offenders.
RECOMMENDATION:
Staff recommends that the City Council conduct a second reading (adoption) of
Ordinance No. 14-10, an Ordinance of the City Council of the City of San Jacinto,
California, Repealing Chapter 9.38 of the San Jacinto Municipal Code Regarding
Loitering by Registered Sex Offenders.
DISCUSSION:
As a result of a recent decision of a California Court of Appeal, and the denial of review
by the California Supreme Court, a portion of the San Jacinto Municipal Code is now at
odds with that court decision. As a result, it is recommended that the City Council
repeal portions of its Code.
This past January, a California Court of Appeal in Orange County held that the
California Legislature had established a comprehensive scheme for regulating the daily
lives of sex offenders thereby prohibiting local legislation on the subject unless it is
expressly permitted by a statute. The decision, People v. Nguyen, undermines the
ability of municipalities to restrict where a sex offender may go and what a sex offender
may do. This past April, the California Supreme Court declined to review the ruling in
Nguyen, leaving the decision intact.
Chapter 9.38 of the San Jacinto Municipal Code is similar to the ordinance that was
struck down in the Nguyen case. For this reason, the City Attorney’s office has strongly
recommended the adoption of the attached Ordinance.
FISCAL IMPACT:
This item is not expected to have any impact on the General Fund.
ATTACHMENT:
Ordinance No. 14-10
PACKET PAGE: 19
AGENDA ITEM 3A.5
1
STATE OF CALIFORNIA ) ORDINANCE NO. 14-10
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SAN JACINTO, CALIFORNIA, REPEALING CHAPTER
9.38 OF THE SAN JACINTO MUNICIPAL CODE
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JACINTO,
CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. Chapter 9.38 of the San Jacinto Municipal Code is hereby
repealed in its entirety.
SECTION 2. If any section, subsection, sentence, clause, phrase or word of this
Ordinance is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would
have adopted this Ordinance, and each and every section, subsection, sentence,
clause, or phrase not declared invalid or unconstitutional without regard to whether any
portion or the Ordinance would be subsequently declared invalid or unconstitutional.
SECTION 3. This Ordinance supersedes and voids all prior ordinances,
resolutions, and other Council actions which are inconsistent with its terms.
SECTION 4. Based on the entire record before the City Council, and all written
and oral evidence presented to the City Council, the City Council hereby finds that this
ordinance is exempt from review under the California Environmental Quality Act
(“CEQA”), pursuant to Sections 15060(c)(2) (the activity will not result in a direct or
reasonably foreseeable indirect physical change in the environment) and 15060(c)(3)
(the activity is not a project as defined in Section 15378) of the CEQA Guidelines,
California Code of Regulations, Title 14, Chapter 3, because it has no potential for
resulting in physical change to the environment, directly or indirectly.
SECTION 5. This Ordinance shall take effect thirty (30) days after the date of its
adoption, and prior to the expiration of the fifteen (15) days from the passage thereof,
the Ordinance or a summary of the Ordinance shall be published at least once in the
Press Enterprise, a newspaper published and circulated in the City of San Jacinto, and
thereupon and thereafter this ordinance shall take effect and be in force according to
law.
PASSED, APPROVED AND ADOPTED by the City Council of the City of San
Jacinto, California, at a regular meeting of the City Council held on the ____ day of
_____________, 2014.
PACKET PAGE: 21
AGENDA ITEM 3A.5
2
City of San Jacinto
______________________________
By: Alonso Ledezma, Mayor
ATTEST:
______________________________________
Rick Miller, City Clerk
APPROVED AS TO FORM:
______________________________________
Best Best & Krieger LLP
City Attorney
PACKET PAGE: 22
AGENDA ITEM 3A.5
3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE)ss
CITY OF SAN JACINTO )
I, , City Clerk of the City of San Jacinto, California, do hereby certify that the
foregoing Ordinance was regularly introduced and duly passed and adopted at a regular
meeting of the City Council of the City of San Jacinto, California, duly held the __ day of
_________ 2014, by the following vote of the Council:
AYES:
NOES:
ABSENT:
ABSTAINED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of the City of San Jacinto, California, this __ day of _______ 2014.
Rick Miller, City Clerk
PACKET PAGE: 23
AGENDA ITEM 3A.5
August 5, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Kaleena Richards, City Treasurer
SUBJECT: Treasurer’s Report at June 30, 2014
RECOMMENDATION:
Receive and File Treasurer’s Report for June 30, 2014.
BACKGROUND:
The Treasurer’s Report is required to be presented to the governing body at least
quarterly in accordance with California Government Code Section 53600 et. seq.
DISCUSSION:
Total Cash and City Investments increased 6.30% during the month. This includes
cash, cash in bank and cash with trustee.
The attached Treasurer’s report is a “snapshot” report of our cash position on the last
day of the month in all of our accounts. A section demonstrating compliance with the
adopted Investment Policy, a schedule of CDs, and a chart depicting historical interest
rates for certain positions is also included. Detailed statements of investments from
Chandler Asset Management and BLX Group have also been included.
Also attached is a “Memorandum” from BLX Group regarding the downgrade of Dell
bonds held as investments. Please read this document, as it explains an exception to
the adopted Investment Policy. Although this is an exception currently, it was in
compliance with our Policy when purchased. The downgrade does affect the
investment’s market value, so if the investment were to be sold today, it would be sold
at a significant loss.
FISCAL IMPACT:
None.
ATTACHMENTS:
Treasurer’s Report for the month ending June 30, 2014.
PACKET PAGE: 25
AGENDA ITEM 3A.6
PACKET PAGE: 27AGENDA ITEM 3A.6
PACKET PAGE: 28AGENDA ITEM 3A.6
-
0.500
1.000
1.500
2.000
7/118/119/1110/1111/1112/111/122/123/124/125/126/127/128/129/1210/1211/1212/121/132/133/134/135/136/137/138/139/1310/1311/1312/131/142/143/144/145/146/14Interest Rates - 7/11 to 6/14
LAIF
CAMP
LAMMA-BoH
MMA-Rabo
PIMMA-
RaboPACKET PAGE: 29AGENDA ITEM 3A.6
Monthly Account Statement
+(314)-418-3441
Linda Brimm
US Bank
CustodianChandler Team
For questions about your account,
please call (800) 317-4747 or
Email operations@chandlerasset.com
City of San Jacinto
June 1, 2014 through June 30, 2014
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your
qualified custodian. Prices are provided by IDC, an independent pricing source.
6225 Lusk Boulevard | San Diego, CA 92121 | Phone 800.317.4747 | Fax 858.546.3741 | www.chandlerasset.comPACKET PAGE: 30AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 1
Cont/WD -946
Income Earned 5,767 6,115
Cost Value 10,156,775 10,161,467
Book Value 10,054,872 10,057,288
Par 9,963,126 9,961,116
Market Value 10,087,521 10,076,678
Total Market Value 10,119,357 10,111,266
Accrued Interest 31,836 34,588
ACCOUNT SUMMARY
Beg. Values
as of 5/31/14
End Values
as of 6/30/14
76.1 %
Berkshire Hathaway 2.0 %
JP Morgan Chase & Co 2.5 %
Honda Motor Corporation 3.3 %
Federal Farm Credit Bank 9.8 %
Federal Home Loan Mortgage Corp 12.1 %
Federal Home Loan Bank 12.8 %
Federal National Mortgage Assoc 15.0 %
Government of United States 18.7 %
TOP ISSUERS
Issuer % Portfolio
Average S&P/Moody Rating AA+/Aa1
Average Market YTM 0.59 %
Average Life 1.90 yrs
Average Final Maturity 1.99 yrs
Average Purchase YTM 0.73 %
Average Duration 1.87
Average Coupon 1.41 %
PORTFOLIO CHARACTERISTICS
CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION
1-3 Year Govt/A Rated or better Corporate -0.04 %0.31 %0.51 %1.03 %N/A N/A N/A 0.84 %1.70 %
1-3 yr Treasury -0.04 %0.27 %0.41 %0.76 %N/A N/A N/A 0.55 %1.10 %
City of San Jacinto -0.07 %0.31 %0.53 %1.03 %N/A N/A N/A 0.67 %1.34 %
PERFORMANCE REVIEW
Total Rate of Return Current Latest Year Annualized Since
As of 6/30/2014 Month 3 Months To Date 1 Yr 3 Yrs 5 Yrs 10 Yrs 6/30/2012 6/30/2012
Portfolio Summary
As of 6/30/2014
City of San Jacinto
Account #10167
PACKET PAGE: 31AGENDA ITEM 3A.6
Category Standard CommentLocal Agency Bonds No Limitation; BBB rated equivalent by a NRSROCompliesTreasury Issues No Limitation CompliesAgency Issues No Limitation CompliesBanker’s Acceptances 40% maximum; <180 days maturity; A-1 rated equivalent by at least two NRSROsComplies Commercial Paper 25% maximum; <270 days maturity; A-1 rated equivalent by at least two NRSROsCompliesNegotiable Certificates of Deposit 30% maximum; A rated equivalent by at least two NRSROsComplies Medium Term Notes 30% maximum; A rated equivalent by at least two NRSROsCompliesMoney Market Mutual Funds 20% maximum; rated equivalent by at least two NRSROsCompliesMortgage Pass-throughs, CMOs and Asset Backed Securities20% maximum; AA-rated issue; A-rated issuerComplies Local Agency Investment Fund - L.A.I.F. Currently not used by investment adviser CompliesProhibited Securities Inverse floaters; Ranges notes, Interest-only strips from mortgaged backed securities; Zero interest accrual securitiesCompliesIssuer Maximum 5% per issuer for all non-government issuersCompliesMaximum maturity 5 years Complies City of San JacintoJune 30, 2014COMPLIANCE WITH INVESTMENT POLICY Assets managed by Chandler Asset Management are in full compliance with State law and with the City's investment policy.PACKET PAGE: 32
AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 3
- Other Dispositions $0.00
- Maturites $395,000.00
- Calls $0.00
- MMF Withdrawals $946.17
+/- Realized Gain/Loss $0.00
- Security Transfers $0.00
+/- Net Accretion ($5,140.55)
($5,140.55)
Gain/Loss on Dispositions
- Principal Paydowns $13,555.39
Total Dispositions $1,146,618.40
Amortization/Accretion
+ Security Purchases $734,567.60
+ Money Market Fund Purchases $419,607.55
+ Money Market Contributions $0.00
- Security Withdrawals $0.00
$0.00
Acquisition
Dispositions
- Security Sales $0.00
- Money Market Fund Sales $737,116.84
+ Security Contributions $0.00
+ Security Transfers $0.00
Total Acquisitions $1,154,175.15
Ending Book Value $10,057,287.84
BOOK VALUE RECONCILIATION
Beginning Book Value $10,054,871.64
Interest from Calls/Redemption $0.00
Principal Paydown $13,555.39
Accrued Interest Paid $2,549.24
Calls/Redemption (Principal)$0.00
Withdrawals $946.17
Security Purchase $734,567.60
Total Acquisitions $419,607.55
Disposition
Principal on Maturities $395,000.00
Acquisition
Contributions $0.00
Interest on Maturities $0.00
Total Dispositions $738,063.01
Interest Received $11,051.26
Dividend Received $0.90
Security Sale Proceeds $0.00
Accrued Interest Received $0.00
Ending Book Value $11,301.95
CASH TRANSACTION SUMMARY
BEGINNING BALANCE $329,757.41
Reconciliation Summary
As of 6/30/2014
City of San Jacinto California
Account #10167
PACKET PAGE: 33AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 4
31331VGU4 FFCB Note
4.875% Due 12/16/2015
250,000.00 06/12/2012
0.65 %
286,602.00
265,229.40
106.62
0.33 %
266,561.25
507.81
2.64 %
1,331.85
Aaa / AA+
AAA
1.46
1.42
3133ECFV1 FFCB Note
0.43% Due 1/29/2016
225,000.00 02/21/2013
0.45 %
224,896.50
224,944.24
100.07
0.39 %
225,149.18
408.50
2.23 %
204.94
Aaa / AA+
AAA
1.58
1.57
3133XXP43 FHLB Note
3.125% Due 3/11/2016
270,000.00 06/14/2012
0.79 %
293,180.04
280,511.68
104.47
0.48 %
282,066.57
2,578.13
2.82 %
1,554.89
Aaa / AA+
AAA
1.70
1.65
313370JB5 FHLB Note
1.75% Due 9/11/2015
275,000.00 01/11/2013
0.38 %
284,933.00
279,484.22
101.82
0.23 %
279,994.28
1,470.49
2.78 %
510.06
Aaa / AA+
AAA
1.20
1.18
31331J2S1 FFCB Note
1.5% Due 11/16/2015
290,000.00 06/25/2012
0.57 %
299,065.40
293,683.28
101.59
0.34 %
294,605.49
543.75
2.92 %
922.21
Aaa / AA+
AAA
1.38
1.36
313371NW2 FHLB Note
1.375% Due 12/11/2015
225,000.00 11/16/2012
0.39 %
231,723.00
228,177.93
101.52
0.32 %
228,419.55
171.88
2.26 %
241.62
Aaa / AA+
AAA
1.45
1.43
3135G0GY3 FNMA Note
1.25% Due 1/30/2017
295,000.00 02/05/2014
0.72 %
299,587.25
298,976.46
101.25
0.76 %
298,690.16
1,546.70
2.97 %
(286.30)
Aaa / AA+
AAA
2.59
2.53
3137EADC0 FHLMC Note
1% Due 3/8/2017
220,000.00 08/20/2012
0.86 %
221,392.60
220,822.98
100.34
0.87 %
220,758.56
690.56
2.19 %
(64.42)
Aaa / AA+
AAA
2.69
2.64
3135G0BA0 FNMA Note
2.375% Due 4/11/2016
265,000.00 06/24/2014
0.44 %
274,147.80
274,091.85
103.64
0.32 %
274,646.53
1,398.61
2.73 %
554.68
Aaa / AA+
AAA
1.78
1.74
3137EACT4 FHLMC Note
2.5% Due 5/27/2016
180,000.00 07/12/2012
0.61 %
193,012.20
186,404.87
103.72
0.54 %
186,697.80
425.00
1.85 %
292.93
Aaa / AA+
AAA
1.91
1.87
3137EACW7 FHLMC Note
2% Due 8/25/2016
190,000.00 06/14/2012
0.82 %
199,262.31
194,752.07
103.01
0.59 %
195,719.57
1,330.00
1.95 %
967.50
Aaa / AA+
AAA
2.16
2.10
3133EADW5 FFCB Note
0.55% Due 8/17/2015
200,000.00 06/21/2013
0.48 %
200,310.00
200,163.12
100.33
0.26 %
200,659.20
409.44
1.99 %
496.08
Aaa / AA+
AAA
1.13
1.12
3137EACD9 FHLMC Note
3% Due 7/28/2014
190,000.00 06/22/2012
0.40 %
200,286.03
190,363.99
100.22
0.17 %
190,418.19
2,422.50
1.91 %
54.20
Aaa / AA+
AAA
0.08
0.08
3135G0KM4 FNMA Note
0.5% Due 5/27/2015
200,000.00 06/12/2012
0.53 %
199,828.00
199,947.35
100.28
0.20 %
200,551.60
94.44
1.98 %
604.25
Aaa / AA+
AAA
0.91
0.91
AGENCY
43814CAC3 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
121,000.00 12/17/2013
0.50 %
120,971.64
120,979.19
100.09
0.37 %
121,104.67
16.13
1.20 %
125.48
NR / AAA
AAA
2.40
0.78
47787RAC4 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
138,813.63 01/09/2014
0.50 %
138,857.00
138,849.02
100.04
0.46 %
138,866.24
32.70
1.37 %
17.22
Aaa / NR
AAA
2.04
0.54
161571FL3 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
125,000.00 04/25/2014
0.51 %
125,219.73
125,208.41
100.15
0.46 %
125,186.75
32.78
1.24 %
(21.66)
NR / AAA
AAA
3.13
1.10
43814GAC4 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
85,000.00 05/13/2014
0.78 %
84,989.78
84,990.16
99.96
0.79 %
84,965.58
23.63
0.84 %
(24.58)
Aaa / AAA
NR
3.72
1.95
Total ABS 469,813.63 0.55 %
470,038.15
470,026.78 0.50 %
470,123.24
105.24
4.65 %
96.46
Aaa / AAA
Aaa
2.73
1.01
ABS
Holdings Report
As of 6/30/14
City of San Jacinto
Account #10167
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
PACKET PAGE: 34AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 5
191216AX8 Coca Cola Company Note
0.75% Due 3/13/2015
125,000.00 06/18/2012
0.63 %
125,421.25
125,107.96
100.35
0.25 %
125,439.38
281.25
1.24 %
331.42
Aa3 / AA
A+
0.70
0.70
713448BX5 Pepsico Inc. Note
0.75% Due 3/5/2015
125,000.00 06/05/2012
0.83 %
124,732.50
124,933.93
100.30
0.30 %
125,380.38
302.08
1.24 %
446.45
A1 / A-
A
0.68
0.68
94974BET3 Wells Fargo Corp Note
3.75% Due 10/1/2014
120,000.00 06/26/2012
1.27 %
126,600.00
120,736.89
100.86
0.34 %
121,033.20
1,125.00
1.21 %
296.31
A2 / A+
AA-
0.25
0.25
40428HPG1 HSBC USA Inc Note
2.375% Due 2/13/2015
125,000.00 06/26/2012
1.90 %
126,497.50
125,354.47
101.24
0.36 %
126,555.38
1,138.02
1.26 %
1,200.91
A2 / A+
AA-
0.62
0.61
US CORPORATE
31846V203 First American Govt Obligation Fund 11,301.95 Various
0.00 %
11,301.95
11,301.95
1.00
0.00 %
11,301.95
0.00
0.11 %
0.00
Aaa / AAA
NR
0.00
0.00
Total Money Market Fund FI 11,301.95 N/A
11,301.95
11,301.95 0.00 %
11,301.95
0.00
0.11 %
0.00
Aaa / AAA
NR
0.00
0.00
MONEY MARKET FUND FI
06538CKM2 Bank of Tokyo Mitsubishi NY Discount
CP
0.21% Due 10/21/2014
200,000.00 06/16/2014
0.21 %
199,853.00
199,869.33
99.93
0.21 %
199,869.33
0.00
1.98 %
0.00
P-1 / A-1
F-1
0.31
0.31
Total Commercial Paper 200,000.00 0.21 %
199,853.00
199,869.33 0.21 %
199,869.33
0.00
1.98 %
0.00
P-1 / A-1
F-1
0.31
0.31
COMMERCIAL PAPER
3137EADJ5 FHLMC Note
1% Due 7/28/2017
220,000.00 09/25/2013
1.17 %
218,563.40
218,847.64
100.06
0.98 %
220,135.08
935.00
2.19 %
1,287.44
Aaa / AA+
AAA
3.08
3.01
3135G0MZ3 FNMA Note
0.875% Due 8/28/2017
325,000.00 05/06/2013
0.73 %
326,956.50
326,434.44
99.45
1.05 %
323,196.58
971.61
3.21 %
(3,237.86)
Aaa / AA+
AAA
3.16
3.10
3135G0JA2 FNMA Note
1.125% Due 4/27/2017
235,000.00 03/14/2014
0.85 %
236,999.85
236,813.41
100.50
0.94 %
236,183.46
470.00
2.34 %
(629.95)
Aaa / AA+
AAA
2.83
2.77
313379DD8 FHLB Note
1% Due 6/21/2017
260,000.00 06/09/2014
0.93 %
260,566.80
260,556.05
100.33
0.89 %
260,860.34
72.22
2.58 %
304.29
Aaa / AA+
AAA
2.98
2.92
3137EADL0 FHLMC Note
1% Due 9/29/2017
200,000.00 11/14/2013
1.06 %
199,540.00
199,614.17
99.79
1.06 %
199,587.60
511.11
1.98 %
(26.57)
Aaa / AA+
AAA
3.25
3.18
313378A43 FHLB Note
1.375% Due 3/9/2018
235,000.00 06/21/2013
1.54 %
233,211.65
233,597.84
100.32
1.29 %
235,754.12
1,005.28
2.34 %
2,156.28
Aaa / AA+
AAA
3.69
3.57
3135G0PQ0 FNMA Note
0.875% Due 10/26/2017
175,000.00 05/19/2014
1.05 %
173,962.25
173,996.98
99.27
1.10 %
173,715.85
276.48
1.72 %
(281.13)
Aaa / AA+
AAA
3.33
3.26
Total Agency 4,925,000.00 0.73 %
5,058,026.58
4,987,413.97 0.62 %
4,994,370.96
18,239.51
49.57 %
6,956.99
Aaa / AA+
Aaa
2.12
2.08
AGENCY
Holdings Report
As of 6/30/14
City of San Jacinto
Account #10167
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
PACKET PAGE: 35AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 6
912828TD2 US Treasury Note
0.25% Due 7/15/2015
200,000.00 10/15/2013
0.31 %
199,781.92
199,869.84
100.10
0.16 %
200,195.40
230.66
1.98 %
325.56
Aaa / AA+
AAA
1.04
1.04
912828UG3 US Treasury Note
0.375% Due 1/15/2016
200,000.00 01/22/2014
0.42 %
199,836.61
199,872.59
100.16
0.27 %
200,312.40
345.99
1.98 %
439.81
Aaa / AA+
AAA
1.55
1.53
912828NV8 US Treasury Note
1.25% Due 8/31/2015
195,000.00 06/06/2012
0.38 %
200,454.56
196,969.19
101.28
0.15 %
197,498.34
814.71
1.96 %
529.15
Aaa / AA+
AAA
1.17
1.16
912828PE4 US Treasury Note
1.25% Due 10/31/2015
195,000.00 06/07/2012
0.46 %
200,203.19
197,043.51
101.41
0.19 %
197,742.09
410.67
1.96 %
698.58
Aaa / AA+
AAA
1.34
1.32
912828QA1 US Treasury Note
2.25% Due 3/31/2016
195,000.00 12/14/2012
0.38 %
206,868.23
201,319.83
103.30
0.36 %
201,436.56
1,102.87
2.00 %
116.73
Aaa / AA+
AAA
1.75
1.72
US TREASURY
48126EAA5 JP Morgan Note
2% Due 8/15/2017
125,000.00 05/06/2013
1.35 %
128,341.25
127,445.39
101.70
1.44 %
127,119.13
944.44
1.27 %
(326.26)
A3 / A
A+
3.13
3.00
68389XAN5 Oracle Corp Note
1.2% Due 10/15/2017
200,000.00 08/13/2013
1.78 %
195,402.00
196,366.34
99.87
1.24 %
199,732.40
506.67
1.98 %
3,366.06
A1 / A+
A+
3.30
3.21
36962G4T8 General Electric Capital Corp Note
2.25% Due 11/9/2015
185,000.00 01/14/2014
0.48 %
190,903.35
189,429.75
102.29
0.56 %
189,233.73
601.25
1.88 %
(196.02)
A1 / AA+
NR
1.36
1.34
459200GU9 IBM Corp Note
2% Due 1/5/2016
120,000.00 06/05/2012
0.98 %
124,288.80
121,816.01
102.31
0.47 %
122,775.48
1,173.33
1.23 %
959.47
Aa3 / AA-
A+
1.52
1.48
037833AH3 Apple Inc Note
0.45% Due 5/3/2016
200,000.00 05/22/2013
0.54 %
199,466.00
199,664.94
99.79
0.57 %
199,574.60
145.00
1.98 %
(90.34)
Aa1 / AA+
NR
1.84
1.83
69371RK62 Paccar Financial Corp Note
1.05% Due 6/5/2015
150,000.00 01/10/2014
0.43 %
151,294.50
150,867.26
100.70
0.29 %
151,054.95
113.75
1.50 %
187.69
A1 / A+
NR
0.93
0.93
594918AG9 Microsoft Note
1.625% Due 9/25/2015
125,000.00 06/27/2012
0.65 %
128,893.75
126,484.43
101.65
0.29 %
127,064.63
541.67
1.26 %
580.20
Aaa / AAA
AA+
1.24
1.22
278642AB9 Ebay Inc Note
1.625% Due 10/15/2015
125,000.00 06/12/2012
0.91 %
127,943.75
126,139.28
101.58
0.40 %
126,971.13
428.82
1.26 %
831.85
A2 / A
A
1.29
1.28
742718DV8 Procter & Gamble Co Note
1.45% Due 8/15/2016
190,000.00 11/14/2012
0.71 %
195,156.60
192,931.52
101.64
0.67 %
193,115.62
1,040.78
1.92 %
184.10
Aa3 / AA-
NR
2.13
2.08
91159HHD5 US Bancorp Callable Note Cont
4/15/2017
1.65% Due 5/15/2017
125,000.00 05/19/2014
1.06 %
127,113.75
127,033.91
101.53
1.09 %
126,908.38
263.54
1.26 %
(125.53)
A1 / A+
AA-
2.88
2.72
674599CB9 Occidental Petroleum Note
1.75% Due 2/15/2017
120,000.00 01/11/2013
1.11 %
123,064.80
121,973.31
101.85
1.03 %
122,219.64
793.33
1.22 %
246.33
A1 / A
A
2.63
2.55
02665WAB7 American Honda Finance Note
1.125% Due 10/7/2016
125,000.00 03/05/2014
0.78 %
126,100.00
125,968.05
100.59
0.86 %
125,735.00
328.13
1.25 %
(233.05)
A1 / A+
NR
2.27
2.23
084670BD9 Berkshire Hathaway Note
1.9% Due 1/31/2017
200,000.00 08/13/2013
1.39 %
203,422.00
202,558.38
102.41
0.95 %
204,813.20
1,593.89
2.04 %
2,254.82
Aa2 / AA
A+
2.59
2.50
Total US Corporate 2,485,000.00 0.98 %
2,524,641.80
2,504,811.82 0.67 %
2,514,726.23
11,320.95
24.98 %
9,914.41
A1 / AA-
A+
1.80
1.75
US CORPORATE
Holdings Report
As of 6/30/14
City of San Jacinto
Account #10167
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
PACKET PAGE: 36AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 7
912828RF9 US Treasury Note
1% Due 8/31/2016
215,000.00 10/12/2012
0.48 %
219,283.92
217,396.09
101.03
0.52 %
217,217.08
718.61
2.16 %
(179.01)
Aaa / AA+
AAA
2.17
2.14
912828RM4 US Treasury Note
1% Due 10/31/2016
250,000.00 03/14/2014
0.60 %
252,627.79
252,337.34
100.94
0.59 %
252,343.75
421.20
2.50 %
6.41
Aaa / AA+
AAA
2.34
2.30
912828SY7 US Treasury Note
0.625% Due 5/31/2017
210,000.00 07/25/2013
0.96 %
207,318.28
207,967.24
99.34
0.86 %
208,605.39
111.17
2.06 %
638.15
Aaa / AA+
AAA
2.92
2.88
912828SC5 US Treasury Note
0.875% Due 1/31/2017
210,000.00 02/26/2014
0.67 %
211,231.17
211,088.36
100.45
0.70 %
210,935.13
766.47
2.09 %
(153.23)
Aaa / AA+
AAA
2.59
2.54
Total US Treasury 1,870,000.00 0.52 %
1,897,605.67
1,883,863.99 0.43 %
1,886,286.14
4,922.35
18.70 %
2,422.15
Aaa / AA+
Aaa
1.90
1.87
US TREASURY
TOTAL PORTFOLIO 9,961,115.58 0.73 %
10,161,467.15
10,057,287.84 0.59 %
10,076,677.85
34,588.05
100.00 %
19,390.01
Aa1 / AA+
Aaa
1.99
1.87
TOTAL MARKET VALUE PLUS ACCRUED 10,111,265.90
Holdings Report
As of 6/30/14
City of San Jacinto
Account #10167
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
PACKET PAGE: 37AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 8
Sale 06/10/2014 31846V203 261,787.36 First American Govt Obligation Fund 1.000 261,787.36 0.00 261,787.36 0.00
Closing
Purchase
06/27/2014 31846V203 -275,476.48 First American Govt Obligation Fund 1.000 -275,476.48 0.00 -275,476.48 0.00
Closing
Purchase
06/17/2014 31846V203 -199,853.00 First American Govt Obligation Fund 1.000 -199,853.00 0.00 -199,853.00 0.00
Subtotal -475,329.48 -475,329.48 0.00 -475,329.48 0.00
DISPOSITIONS
Short Sale 06/17/2014 31846V203 -199,853.00 First American Govt Obligation Fund 1.000 -199,853.00 0.00 -199,853.00 0.00
Short Sale 06/27/2014 31846V203 -275,476.48 First American Govt Obligation Fund 1.000 -275,476.48 0.00 -275,476.48 0.00
Subtotal -475,329.48 -475,329.48 0.00 -475,329.48 0.00
Purchase 06/16/2014 31846V203 6,093.75 First American Govt Obligation Fund 1.000 6,093.75 0.00 6,093.75 0.00
Purchase 06/27/2014 3135G0BA0 265,000.00 FNMA Note
2.375% Due 4/11/2016
103.452 0.44 %274,147.80 1,328.68 275,476.48 0.00
Purchase 06/10/2014 313379DD8 260,000.00 FHLB Note
1% Due 6/21/2017
100.218 0.93 %260,566.80 1,220.56 261,787.36 0.00
Purchase 06/05/2014 31846V203 787.50 First American Govt Obligation Fund 1.000 787.50 0.00 787.50 0.00
Purchase 06/11/2014 31846V203 1,546.88 First American Govt Obligation Fund 1.000 1,546.88 0.00 1,546.88 0.00
Purchase 06/02/2014 31846V203 0.90 First American Govt Obligation Fund 1.000 0.90 0.00 0.90 0.00
Purchase 06/21/2014 31846V203 48.40 First American Govt Obligation Fund 1.000 48.40 0.00 48.40 0.00
Purchase 06/17/2014 06538CKM2 200,000.00 Bank of Tokyo Mitsubishi NY Discount CP
0.21% Due 10/21/2014
99.927 0.21 %199,853.00 0.00 199,853.00 0.00
Purchase 06/18/2014 31846V203 49.09 First American Govt Obligation Fund 1.000 49.09 0.00 49.09 0.00
Purchase 06/21/2014 31846V203 1,300.00 First American Govt Obligation Fund 1.000 1,300.00 0.00 1,300.00 0.00
Purchase 06/27/2014 31846V203 1,096.88 First American Govt Obligation Fund 1.000 1,096.88 0.00 1,096.88 0.00
Purchase 06/16/2014 31846V203 61.46 First American Govt Obligation Fund 1.000 61.46 0.00 61.46 0.00
Purchase 06/17/2014 31846V203 200,000.00 First American Govt Obligation Fund 1.000 200,000.00 0.00 200,000.00 0.00
Purchase 06/27/2014 31846V203 195,000.00 First American Govt Obligation Fund 1.000 195,000.00 0.00 195,000.00 0.00
Purchase 06/16/2014 31846V203 13,622.69 First American Govt Obligation Fund 1.000 13,622.69 0.00 13,622.69 0.00
Subtotal 1,144,607.55 1,154,175.15 2,549.24 1,156,724.39 0.00
TOTAL ACQUISITIONS 669,278.07 678,845.67 2,549.24 681,394.91 0.00
ACQUISITIONS
Transaction Ledger
5/31/14 Thru 6/30/14
City of San Jacinto
Account #10167
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price
Acq/Disp
Yield Amount
Interest
Pur/Sold Total Amount Gain/Loss
PACKET PAGE: 38AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 9
Interest 06/11/2014 313371NW2 225,000.00 FHLB Note
1.375% Due 12/11/2015
0.000 1,546.88 0.00 1,546.88 0.00
Interest 06/21/2014 313379DD8 260,000.00 FHLB Note
1% Due 6/21/2017
0.000 1,300.00 0.00 1,300.00 0.00
Interest 06/16/2014 31331VGU4 250,000.00 FFCB Note
4.875% Due 12/16/2015
0.000 6,093.75 0.00 6,093.75 0.00
Interest 06/05/2014 69371RK62 150,000.00 Paccar Financial Corp Note
1.05% Due 6/5/2015
0.000 787.50 0.00 787.50 0.00
OTHER TRANSACTIONS
Security
Withdrawal
06/04/2014 31846V203 842.00 First American Govt Obligation Fund 1.000 842.00 0.00 842.00 0.00
Security
Withdrawal
06/25/2014 31846V203 104.17 First American Govt Obligation Fund 1.000 104.17 0.00 104.17 0.00
Subtotal 946.17 946.17 0.00 946.17 0.00
Maturity 06/17/2014 06538CFH9 200,000.00 Bank of Tokyo Mitsubishi NY Discount CP
0.22% Due 6/17/2014
99.924 200,000.00 0.00 200,000.00 0.00
Maturity 06/27/2014 3135G0BJ1 195,000.00 FNMA Note
1.125% Due 6/27/2014
100.000 195,000.00 0.00 195,000.00 0.00
Subtotal 395,000.00 395,000.00 0.00 395,000.00 0.00
Paydown 06/01/2014 47787RAC4 13,555.39 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
100.000 13,555.39 67.30 13,622.69 0.00
Paydown 06/21/2014 43814CAC3 0.00 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
100.000 0.00 48.40 48.40 0.00
Paydown 06/01/2014 161571FL3 0.00 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
100.000 0.00 61.46 61.46 0.00
Paydown 06/01/2014 43814GAC4 0.00 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
100.000 0.00 49.09 49.09 0.00
Subtotal 13,555.39 13,555.39 226.25 13,781.64 0.00
Sale 06/27/2014 31846V203 275,476.48 First American Govt Obligation Fund 1.000 275,476.48 0.00 275,476.48 0.00
Sale 06/17/2014 31846V203 199,853.00 First American Govt Obligation Fund 1.000 199,853.00 0.00 199,853.00 0.00
Subtotal 737,116.84 737,116.84 0.00 737,116.84 0.00
TOTAL DISPOSITIONS 671,288.92 671,288.92 226.25 671,515.17 0.00
DISPOSITIONS
Transaction Ledger
5/31/14 Thru 6/30/14
City of San Jacinto
Account #10167
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price
Acq/Disp
Yield Amount
Interest
Pur/Sold Total Amount Gain/Loss
PACKET PAGE: 39AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 10
Dividend 06/02/2014 31846V203 329,101.16 First American Govt Obligation Fund 0.000 0.90 0.00 0.90 0.00
Subtotal 329,101.16 0.90 0.00 0.90 0.00
Interest 06/27/2014 3135G0BJ1 195,000.00 FNMA Note
1.125% Due 6/27/2014
0.000 1,096.88 0.00 1,096.88 0.00
Subtotal 1,080,000.00 10,825.01 0.00 10,825.01 0.00
TOTAL OTHER TRANSACTIONS 1,409,101.16 10,825.91 0.00 10,825.91 0.00
OTHER TRANSACTIONS
Transaction Ledger
5/31/14 Thru 6/30/14
City of San Jacinto
Account #10167
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price
Acq/Disp
Yield Amount
Interest
Pur/Sold Total Amount Gain/Loss
PACKET PAGE: 40AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 11
313371NW2 FHLB
Note
1.375% Due 12/11/2015
11/16/2012
11/19/2012
225,000.00
228,358.49
0.00
0.00
228,177.93
1,460.94
1,546.88
171.88
257.82
0.00
180.56
(180.56)
77.26
0.00
77.26
313370JB5 FHLB
Note
1.75% Due 09/11/2015
01/11/2013
01/16/2013
275,000.00
279,792.06
0.00
0.00
279,484.22
1,069.44
0.00
1,470.49
401.05
0.00
307.84
(307.84)
93.21
0.00
93.21
31331VGU4 FFCB
Note
4.875% Due 12/16/2015
06/12/2012
06/13/2012
250,000.00
266,086.59
0.00
0.00
265,229.40
5,585.94
6,093.75
507.81
1,015.62
0.00
857.19
(857.19)
158.43
0.00
158.43
31331J2S1 FFCB
Note
1.5% Due 11/16/2015
06/25/2012
06/26/2012
290,000.00
293,902.95
0.00
0.00
293,683.28
181.25
0.00
543.75
362.50
0.00
219.67
(219.67)
142.83
0.00
142.83
278642AB9 Ebay Inc
Note
1.625% Due 10/15/2015
06/12/2012
06/15/2012
125,000.00
126,211.85
0.00
0.00
126,139.28
259.55
0.00
428.82
169.27
0.00
72.57
(72.57)
96.70
0.00
96.70
191216AX8 Coca Cola Company
Note
0.75% Due 03/13/2015
06/18/2012
06/21/2012
125,000.00
125,120.66
0.00
0.00
125,107.96
203.13
0.00
281.25
78.12
0.00
12.70
(12.70)
65.42
0.00
65.42
161571FL3 Chase CHAIT
Pool #2012-A5
0.59% Due 08/15/2017
04/25/2014
04/30/2014
125,000.00
125,213.89
0.00
0.00
125,208.41
32.78
61.46
32.78
61.46
0.00
5.48
(5.48)
55.98
0.00
55.98
084670BD9 Berkshire Hathaway
Note
1.9% Due 01/31/2017
08/13/2013
08/16/2013
200,000.00
202,639.60
0.00
0.00
202,558.38
1,277.22
0.00
1,593.89
316.67
0.00
81.22
(81.22)
235.45
0.00
235.45
037833AH3 Apple Inc
Note
0.45% Due 05/03/2016
05/22/2013
05/28/2013
200,000.00
199,649.98
0.00
0.00
199,664.94
70.00
0.00
145.00
75.00
14.96
0.00
14.96
89.96
0.00
89.96
02665WAB7 American Honda Finance
Note
1.125% Due 10/07/2016
03/05/2014
03/10/2014
125,000.00
126,003.08
0.00
0.00
125,968.05
210.94
0.00
328.13
117.19
0.00
35.03
(35.03)
82.16
0.00
82.16
Fixed Income
Income Earned
5/31/14 Thru 6/30/14
City of San Jacinto
Account #10167
CUSIP Security Description
Trade Date
Settle Date
Units
Book Value: Begin
Book Value: Acq
Book Value: Disp
Book Value: End
Prior Accrued
Inc. Received
Ending Accrued
Total Interest
Accr. Of Discount
Amort. Of Premium
Net Accret/Amort
Income Earned
Unreal G/L
Total Income
PACKET PAGE: 41AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 12
3135G0MZ3 FNMA
Note
0.875% Due 08/28/2017
05/06/2013
05/07/2013
325,000.00
326,471.73
0.00
0.00
326,434.44
734.64
0.00
971.61
236.97
0.00
37.29
(37.29)
199.68
0.00
199.68
3135G0KM4 FNMA
Note
0.5% Due 05/27/2015
06/12/2012
06/13/2012
200,000.00
199,942.56
0.00
0.00
199,947.35
11.11
0.00
94.44
83.33
4.79
0.00
4.79
88.12
0.00
88.12
3135G0JA2 FNMA
Note
1.125% Due 04/27/2017
03/14/2014
03/17/2014
235,000.00
236,866.17
0.00
0.00
236,813.41
249.69
0.00
470.00
220.31
0.00
52.76
(52.76)
167.55
0.00
167.55
3135G0GY3 FNMA
Note
1.25% Due 01/30/2017
02/05/2014
02/06/2014
295,000.00
299,102.83
0.00
0.00
298,976.46
1,239.41
0.00
1,546.70
307.29
0.00
126.37
(126.37)
180.92
0.00
180.92
3135G0BJ1 FNMA
Note
Due 06/27/2014
06/06/2012
06/07/2012
0.00
195,104.41
0.00
195,000.00
0.00
938.44
1,096.88
0.00
158.44
0.00
104.41
(104.41)
54.03
0.00
54.03
3135G0BA0 FNMA
Note
2.375% Due 04/11/2016
06/24/2014
06/27/2014
265,000.00
0.00
274,147.80
0.00
274,091.85
0.00
(1,328.68)
1,398.61
69.93
0.00
55.95
(55.95)
13.98
0.00
13.98
3133XXP43 FHLB
Note
3.125% Due 03/11/2016
06/14/2012
06/15/2012
270,000.00
281,021.13
0.00
0.00
280,511.68
1,875.00
0.00
2,578.13
703.13
0.00
509.45
(509.45)
193.68
0.00
193.68
3133ECFV1 FFCB
Note
0.43% Due 01/29/2016
02/21/2013
02/22/2013
225,000.00
224,941.34
0.00
0.00
224,944.24
327.88
0.00
408.50
80.62
2.90
0.00
2.90
83.52
0.00
83.52
3133EADW5 FFCB
Note
0.55% Due 08/17/2015
06/21/2013
06/25/2013
200,000.00
200,174.99
0.00
0.00
200,163.12
317.78
0.00
409.44
91.66
0.00
11.87
(11.87)
79.79
0.00
79.79
313379DD8 FHLB
Note
1% Due 06/21/2017
06/09/2014
06/10/2014
260,000.00
0.00
260,566.80
0.00
260,556.05
0.00
79.44
72.22
151.66
0.00
10.75
(10.75)
140.91
0.00
140.91
313378A43 FHLB
Note
1.375% Due 03/09/2018
06/21/2013
06/25/2013
235,000.00
233,566.61
0.00
0.00
233,597.84
736.01
0.00
1,005.28
269.27
31.23
0.00
31.23
300.50
0.00
300.50
Income Earned
5/31/14 Thru 6/30/14
City of San Jacinto
Account #10167
CUSIP Security Description
Trade Date
Settle Date
Units
Book Value: Begin
Book Value: Acq
Book Value: Disp
Book Value: End
Prior Accrued
Inc. Received
Ending Accrued
Total Interest
Accr. Of Discount
Amort. Of Premium
Net Accret/Amort
Income Earned
Unreal G/L
Total Income
PACKET PAGE: 42AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 13
43814GAC4 Honda Auto Receivables
2014-2 A3
0.77% Due 03/19/2018
05/13/2014
05/21/2014
85,000.00
84,989.88
0.00
0.00
84,990.16
18.18
49.09
23.63
54.54
0.28
0.00
0.28
54.82
0.00
54.82
43814CAC3 Honda Auto Receivables
2013-1 A3
0.48% Due 11/21/2016
12/17/2013
12/20/2013
121,000.00
120,978.02
0.00
0.00
120,979.19
16.13
48.40
16.13
48.40
1.17
0.00
1.17
49.57
0.00
49.57
40428HPG1 HSBC USA Inc
Note
2.375% Due 02/13/2015
06/26/2012
06/29/2012
125,000.00
125,401.31
0.00
0.00
125,354.47
890.63
0.00
1,138.02
247.39
0.00
46.84
(46.84)
200.55
0.00
200.55
36962G4T8 General Electric Capital Corp
Note
2.25% Due 11/09/2015
01/14/2014
01/17/2014
185,000.00
189,697.67
0.00
0.00
189,429.75
254.38
0.00
601.25
346.87
0.00
267.92
(267.92)
78.95
0.00
78.95
3137EADL0 FHLMC
Note
1% Due 09/29/2017
11/14/2013
11/15/2013
200,000.00
199,604.41
0.00
0.00
199,614.17
344.44
0.00
511.11
166.67
9.76
0.00
9.76
176.43
0.00
176.43
3137EADJ5 FHLMC
Note
1% Due 07/28/2017
09/25/2013
09/27/2013
220,000.00
218,816.86
0.00
0.00
218,847.64
751.67
0.00
935.00
183.33
30.78
0.00
30.78
214.11
0.00
214.11
3137EADC0 FHLMC
Note
1% Due 03/08/2017
08/20/2012
08/21/2012
220,000.00
220,848.14
0.00
0.00
220,822.98
507.22
0.00
690.56
183.34
0.00
25.16
(25.16)
158.18
0.00
158.18
3137EACW7 FHLMC
Note
2% Due 08/25/2016
06/14/2012
06/15/2012
190,000.00
194,933.45
0.00
0.00
194,752.07
1,013.33
0.00
1,330.00
316.67
0.00
181.38
(181.38)
135.29
0.00
135.29
3137EACT4 FHLMC
Note
2.5% Due 05/27/2016
07/12/2012
07/13/2012
180,000.00
186,680.95
0.00
0.00
186,404.87
50.00
0.00
425.00
375.00
0.00
276.08
(276.08)
98.92
0.00
98.92
3137EACD9 FHLMC
Note
3% Due 07/28/2014
06/22/2012
06/25/2012
190,000.00
190,768.42
0.00
0.00
190,363.99
1,947.50
0.00
2,422.50
475.00
0.00
404.43
(404.43)
70.57
0.00
70.57
3135G0PQ0 FNMA
Note
0.875% Due 10/26/2017
05/19/2014
05/20/2014
175,000.00
173,972.17
0.00
0.00
173,996.98
148.87
0.00
276.48
127.61
24.81
0.00
24.81
152.42
0.00
152.42
Income Earned
5/31/14 Thru 6/30/14
City of San Jacinto
Account #10167
CUSIP Security Description
Trade Date
Settle Date
Units
Book Value: Begin
Book Value: Acq
Book Value: Disp
Book Value: End
Prior Accrued
Inc. Received
Ending Accrued
Total Interest
Accr. Of Discount
Amort. Of Premium
Net Accret/Amort
Income Earned
Unreal G/L
Total Income
PACKET PAGE: 43AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 14
912828NV8 US Treasury
Note
1.25% Due 08/31/2015
06/06/2012
06/07/2012
195,000.00
197,107.86
0.00
0.00
196,969.19
616.00
0.00
814.71
198.71
0.00
138.67
(138.67)
60.04
0.00
60.04
91159HHD5 US Bancorp
Callable Note Cont 4/15/2017
1.65% Due 05/15/2017
05/19/2014
05/22/2014
125,000.00
127,093.79
0.00
0.00
127,033.91
91.67
0.00
263.54
171.87
0.00
59.88
(59.88)
111.99
0.00
111.99
742718DV8 Procter & Gamble Co
Note
1.45% Due 08/15/2016
11/14/2012
11/19/2012
190,000.00
193,044.85
0.00
0.00
192,931.52
811.19
0.00
1,040.78
229.59
0.00
113.33
(113.33)
116.26
0.00
116.26
713448BX5 Pepsico Inc.
Note
0.75% Due 03/05/2015
06/05/2012
06/08/2012
125,000.00
124,925.90
0.00
0.00
124,933.93
223.96
0.00
302.08
78.12
8.03
0.00
8.03
86.15
0.00
86.15
69371RK62 Paccar Financial Corp
Note
1.05% Due 06/05/2015
01/10/2014
01/15/2014
150,000.00
150,944.01
0.00
0.00
150,867.26
770.00
787.50
113.75
131.25
0.00
76.75
(76.75)
54.50
0.00
54.50
68389XAN5 Oracle Corp
Note
1.2% Due 10/15/2017
08/13/2013
08/16/2013
200,000.00
196,275.65
0.00
0.00
196,366.34
306.67
0.00
506.67
200.00
90.69
0.00
90.69
290.69
0.00
290.69
674599CB9 Occidental Petroleum
Note
1.75% Due 02/15/2017
01/11/2013
01/16/2013
120,000.00
122,034.98
0.00
0.00
121,973.31
618.33
0.00
793.33
175.00
0.00
61.67
(61.67)
113.33
0.00
113.33
594918AG9 Microsoft
Note
1.625% Due 09/25/2015
06/27/2012
06/29/2012
125,000.00
126,583.17
0.00
0.00
126,484.43
372.40
0.00
541.67
169.27
0.00
98.74
(98.74)
70.53
0.00
70.53
48126EAA5 JP Morgan
Note
2% Due 08/15/2017
05/06/2013
05/09/2013
125,000.00
127,509.69
0.00
0.00
127,445.39
736.11
0.00
944.44
208.33
0.00
64.30
(64.30)
144.03
0.00
144.03
47787RAC4 John Deere Owner Trust
2012-B A3
0.53% Due 07/15/2016
01/09/2014
01/14/2014
138,813.63
152,409.43
0.00
13,555.39
138,849.02
35.89
67.30
32.70
64.11
0.00
5.02
(5.02)
59.09
0.00
59.09
459200GU9 IBM Corp
Note
2% Due 01/05/2016
06/05/2012
06/08/2012
120,000.00
121,914.53
0.00
0.00
121,816.01
973.33
0.00
1,173.33
200.00
0.00
98.52
(98.52)
101.48
0.00
101.48
Income Earned
5/31/14 Thru 6/30/14
City of San Jacinto
Account #10167
CUSIP Security Description
Trade Date
Settle Date
Units
Book Value: Begin
Book Value: Acq
Book Value: Disp
Book Value: End
Prior Accrued
Inc. Received
Ending Accrued
Total Interest
Accr. Of Discount
Amort. Of Premium
Net Accret/Amort
Income Earned
Unreal G/L
Total Income
PACKET PAGE: 44AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 15
94974BET3 Wells Fargo Corp
Note
3.75% Due 10/01/2014
06/26/2012
06/29/2012
120,000.00
120,977.18
0.00
0.00
120,736.89
750.00
0.00
1,125.00
375.00
0.00
240.29
(240.29)
134.71
0.00
134.71
912828UG3 US Treasury
Note
0.375% Due 01/15/2016
01/22/2014
01/23/2014
200,000.00
199,865.80
0.00
0.00
199,872.59
283.84
0.00
345.99
62.15
6.79
0.00
6.79
68.94
0.00
68.94
912828TD2 US Treasury
Note
0.25% Due 07/15/2015
10/15/2013
10/18/2013
200,000.00
199,859.54
0.00
0.00
199,869.84
189.23
0.00
230.66
41.43
10.30
0.00
10.30
51.73
0.00
51.73
912828SY7 US Treasury
Note
0.625% Due 05/31/2017
07/25/2013
07/26/2013
210,000.00
207,909.98
0.00
0.00
207,967.24
3.59
0.00
111.17
107.58
57.26
0.00
57.26
164.84
0.00
164.84
912828SC5 US Treasury
Note
0.875% Due 01/31/2017
02/26/2014
02/27/2014
210,000.00
211,122.91
0.00
0.00
211,088.36
614.19
0.00
766.47
152.28
0.00
34.55
(34.55)
117.73
0.00
117.73
912828RM4 US Treasury
Note
1% Due 10/31/2016
03/14/2014
03/17/2014
250,000.00
252,419.54
0.00
0.00
252,337.34
217.39
0.00
421.20
203.81
0.00
82.20
(82.20)
121.61
0.00
121.61
912828RF9 US Treasury
Note
1% Due 08/31/2016
10/12/2012
10/15/2012
215,000.00
217,486.85
0.00
0.00
217,396.09
543.34
0.00
718.61
175.27
0.00
90.76
(90.76)
84.51
0.00
84.51
912828QA1 US Treasury
Note
2.25% Due 03/31/2016
12/14/2012
12/17/2012
195,000.00
201,616.54
0.00
0.00
201,319.83
743.24
0.00
1,102.87
359.63
0.00
296.71
(296.71)
62.92
0.00
62.92
912828PE4 US Treasury
Note
1.25% Due 10/31/2015
06/07/2012
06/08/2012
195,000.00
197,169.39
0.00
0.00
197,043.51
211.96
0.00
410.67
198.71
0.00
125.88
(125.88)
72.83
0.00
72.83
TOTAL Fixed Income 9,749,813.63
9,525,133.79
534,714.60
208,555.39
9,846,116.56
31,835.83
8,502.02
34,588.05
11,254.24
293.75
5,470.19
(5,176.44)
6,077.80
0.00
6,077.80
Income Earned
5/31/14 Thru 6/30/14
City of San Jacinto
Account #10167
CUSIP Security Description
Trade Date
Settle Date
Units
Book Value: Begin
Book Value: Acq
Book Value: Disp
Book Value: End
Prior Accrued
Inc. Received
Ending Accrued
Total Interest
Accr. Of Discount
Amort. Of Premium
Net Accret/Amort
Income Earned
Unreal G/L
Total Income
PACKET PAGE: 45AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 16
31846V203 First American
Govt Obligation Fund Various
Various
11,301.95
329,757.41
(55,721.93)
262,733.53
11,301.95
0.00
0.90
0.00
0.90
0.00
0.00
0.00
0.90
0.00
0.90
06538CKM2 Bank of Tokyo Mitsubishi NY
Discount CP
0.21% Due 10/21/2014
06/16/2014
06/17/2014
200,000.00
0.00
199,853.00
0.00
199,869.33
0.00
0.00
0.00
0.00
16.33
0.00
16.33
16.33
0.00
16.33
06538CFH9 Bank of Tokyo Mitsubishi NY
Discount CP
Due 06/17/2014
02/12/2014
02/13/2014
0.00
199,980.44
0.00
200,000.00
0.00
0.00
0.00
0.00
0.00
19.56
0.00
19.56
19.56
0.00
19.56
TOTAL Cash & Equivalent 211,301.95
529,737.85
144,131.07
462,733.53
211,171.28
0.00
0.90
0.00
0.90
35.89
0.00
35.89
36.79
0.00
36.79
Cash & Equivalent
TOTAL PORTFOLIO 9,961,115.58
10,054,871.64
678,845.67
671,288.92
10,057,287.84
31,835.83
8,502.92
34,588.05
11,255.14
329.64
5,470.19
(5,140.55)
6,114.59
0.00
6,114.59
Income Earned
5/31/14 Thru 6/30/14
City of San Jacinto
Account #10167
CUSIP Security Description
Trade Date
Settle Date
Units
Book Value: Begin
Book Value: Acq
Book Value: Disp
Book Value: End
Prior Accrued
Inc. Received
Ending Accrued
Total Interest
Accr. Of Discount
Amort. Of Premium
Net Accret/Amort
Income Earned
Unreal G/L
Total Income
PACKET PAGE: 46AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 17
08/15/2014 Paydown 161571FL3 125,000.00 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
0.00 61.46 61.46
08/15/2014 Paydown 47787RAC4 138,813.63 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
7,714.57 57.82 7,772.39
08/15/2014 Interest 742718DV8 190,000.00 Procter & Gamble Co Note
1.45% Due 8/15/2016
0.00 1,377.50 1,377.50
08/15/2014 Interest 674599CB9 120,000.00 Occidental Petroleum Note
1.75% Due 2/15/2017
0.00 1,050.00 1,050.00
08/13/2014 Interest 40428HPG1 125,000.00 HSBC USA Inc Note
2.375% Due 2/13/2015
0.00 1,484.38 1,484.38
08/15/2014 Interest 48126EAA5 125,000.00 JP Morgan Note
2% Due 8/15/2017
0.00 1,250.00 1,250.00
Aug 2014 16,158.43 11,546.26 27,704.69
07/15/2014 Paydown 161571FL3 125,000.00 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
0.00 61.46 61.46
07/18/2014 Paydown 43814GAC4 85,000.00 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
0.00 54.54 54.54
07/15/2014 Paydown 47787RAC4 138,813.63 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
7,910.16 61.31 7,971.47
07/05/2014 Interest 459200GU9 120,000.00 IBM Corp Note
2% Due 1/5/2016
0.00 1,200.00 1,200.00
07/15/2014 Interest 912828TD2 200,000.00 US Treasury Note
0.25% Due 7/15/2015
0.00 250.00 250.00
07/15/2014 Interest 912828UG3 200,000.00 US Treasury Note
0.375% Due 1/15/2016
0.00 375.00 375.00
07/21/2014 Paydown 43814CAC3 121,000.00 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
8,672.57 48.40 8,720.97
07/30/2014 Interest 3135G0GY3 295,000.00 FNMA Note
1.25% Due 1/30/2017
0.00 1,843.75 1,843.75
07/31/2014 Interest 084670BD9 200,000.00 Berkshire Hathaway Note
1.9% Due 1/31/2017
0.00 1,900.00 1,900.00
07/31/2014 Interest 912828SC5 210,000.00 US Treasury Note
0.875% Due 1/31/2017
0.00 918.75 918.75
07/28/2014 Interest 3137EADJ5 220,000.00 FHLMC Note
1% Due 7/28/2017
0.00 1,100.00 1,100.00
07/28/2014 Maturity 3137EACD9 190,000.00 FHLMC Note
3% Due 7/28/2014
190,000.00 2,850.00 192,850.00
07/29/2014 Interest 3133ECFV1 225,000.00 FFCB Note
0.43% Due 1/29/2016
0.00 483.75 483.75
Jul 2014 206,582.73 11,146.96 217,729.69
Cash Flow Report
From 06/30/2014
City of San Jacinto
Account #10167
Payment Date
Transaction
Type CUSIP Quantity Security Description Principal Amount Income Total Amount
PACKET PAGE: 47AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 18
09/18/2014 Paydown 43814GAC4 85,000.00 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
0.00 54.54 54.54
09/15/2014 Paydown 47787RAC4 138,813.63 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
7,518.87 54.41 7,573.28
09/15/2014 Paydown 161571FL3 125,000.00 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
0.00 61.46 61.46
09/21/2014 Paydown 43814CAC3 121,000.00 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
8,215.01 41.55 8,256.56
09/29/2014 Interest 3137EADL0 200,000.00 FHLMC Note
1% Due 9/29/2017
0.00 1,000.00 1,000.00
09/25/2014 Interest 594918AG9 125,000.00 Microsoft Note
1.625% Due 9/25/2015
0.00 1,015.63 1,015.63
09/09/2014 Interest 313378A43 235,000.00 FHLB Note
1.375% Due 3/9/2018
0.00 1,615.63 1,615.63
09/08/2014 Interest 3137EADC0 220,000.00 FHLMC Note
1% Due 3/8/2017
0.00 1,100.00 1,100.00
09/05/2014 Interest 713448BX5 125,000.00 Pepsico Inc. Note
0.75% Due 3/5/2015
0.00 468.75 468.75
09/13/2014 Interest 191216AX8 125,000.00 Coca Cola Company Note
0.75% Due 3/13/2015
0.00 468.75 468.75
09/11/2014 Interest 3133XXP43 270,000.00 FHLB Note
3.125% Due 3/11/2016
0.00 4,218.75 4,218.75
09/11/2014 Interest 313370JB5 275,000.00 FHLB Note
1.75% Due 9/11/2015
0.00 2,406.25 2,406.25
Sep 2014 15,733.88 14,699.47 30,433.35
08/21/2014 Paydown 43814CAC3 121,000.00 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
8,443.86 44.93 8,488.79
08/25/2014 Interest 3137EACW7 190,000.00 FHLMC Note
2% Due 8/25/2016
0.00 1,900.00 1,900.00
08/17/2014 Interest 3133EADW5 200,000.00 FFCB Note
0.55% Due 8/17/2015
0.00 550.00 550.00
08/18/2014 Paydown 43814GAC4 85,000.00 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
0.00 54.54 54.54
08/31/2014 Interest 912828NV8 195,000.00 US Treasury Note
1.25% Due 8/31/2015
0.00 1,218.75 1,218.75
08/31/2014 Interest 912828RF9 215,000.00 US Treasury Note
1% Due 8/31/2016
0.00 1,075.00 1,075.00
08/28/2014 Interest 3135G0MZ3 325,000.00 FNMA Note
0.875% Due 8/28/2017
0.00 1,421.88 1,421.88
Aug 2014 16,158.43 11,546.26 27,704.69
Cash Flow Report
From 06/30/2014
City of San Jacinto
Account #10167
Payment Date
Transaction
Type CUSIP Quantity Security Description Principal Amount Income Total Amount
PACKET PAGE: 48AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 19
11/03/2014 Interest 037833AH3 200,000.00 Apple Inc Note
0.45% Due 5/3/2016
0.00 450.00 450.00
11/09/2014 Interest 36962G4T8 185,000.00 General Electric Capital Corp Note
2.25% Due 11/9/2015
0.00 2,081.25 2,081.25
11/15/2014 Interest 91159HHD5 125,000.00 US Bancorp Callable Note Cont 4/15/2017
1.65% Due 5/15/2017
0.00 1,031.25 1,031.25
Nov 2014 14,884.02 9,342.67 24,226.69
10/31/2014 Interest 912828RM4 250,000.00 US Treasury Note
1% Due 10/31/2016
0.00 1,250.00 1,250.00
10/15/2014 Interest 68389XAN5 200,000.00 Oracle Corp Note
1.2% Due 10/15/2017
0.00 1,200.00 1,200.00
10/15/2014 Paydown 161571FL3 125,000.00 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
0.00 61.46 61.46
10/15/2014 Paydown 47787RAC4 138,813.63 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
7,323.05 51.09 7,374.14
10/15/2014 Interest 278642AB9 125,000.00 Ebay Inc Note
1.625% Due 10/15/2015
0.00 1,015.63 1,015.63
10/01/2014 Maturity 94974BET3 120,000.00 Wells Fargo Corp Note
3.75% Due 10/1/2014
120,000.00 2,250.00 122,250.00
10/07/2014 Interest 02665WAB7 125,000.00 American Honda Finance Note
1.125% Due 10/7/2016
0.00 703.13 703.13
10/11/2014 Interest 3135G0BA0 265,000.00 FNMA Note
2.375% Due 4/11/2016
0.00 3,146.88 3,146.88
10/26/2014 Interest 3135G0PQ0 175,000.00 FNMA Note
0.875% Due 10/26/2017
0.00 765.63 765.63
10/27/2014 Interest 3135G0JA2 235,000.00 FNMA Note
1.125% Due 4/27/2017
0.00 1,321.88 1,321.88
10/31/2014 Interest 912828PE4 195,000.00 US Treasury Note
1.25% Due 10/31/2015
0.00 1,218.75 1,218.75
10/18/2014 Paydown 43814GAC4 85,000.00 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
0.00 54.54 54.54
10/21/2014 Maturity 06538CKM2 200,000.00 Bank of Tokyo Mitsubishi NY Discount CP
0.21% Due 10/21/2014
200,000.00 0.00 200,000.00
10/21/2014 Paydown 43814CAC3 121,000.00 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
7,986.02 38.27 8,024.29
Oct 2014 335,309.07 13,077.26 348,386.33
09/30/2014 Interest 912828QA1 195,000.00 US Treasury Note
2.25% Due 3/31/2016
0.00 2,193.75 2,193.75
Sep 2014 15,733.88 14,699.47 30,433.35
Cash Flow Report
From 06/30/2014
City of San Jacinto
Account #10167
Payment Date
Transaction
Type CUSIP Quantity Security Description Principal Amount Income Total Amount
PACKET PAGE: 49AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 20
01/05/2015 Interest 459200GU9 120,000.00 IBM Corp Note
2% Due 1/5/2016
0.00 1,200.00 1,200.00
01/15/2015 Interest 912828TD2 200,000.00 US Treasury Note
0.25% Due 7/15/2015
0.00 250.00 250.00
Jan 2015 14,033.13 8,257.85 22,290.98
12/18/2014 Paydown 43814GAC4 85,000.00 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
0.00 54.54 54.54
12/21/2014 Interest 313379DD8 260,000.00 FHLB Note
1% Due 6/21/2017
0.00 1,300.00 1,300.00
12/21/2014 Paydown 43814CAC3 121,000.00 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
7,527.63 31.97 7,559.60
12/11/2014 Interest 313371NW2 225,000.00 FHLB Note
1.375% Due 12/11/2015
0.00 1,546.88 1,546.88
12/05/2014 Interest 69371RK62 150,000.00 Paccar Financial Corp Note
1.05% Due 6/5/2015
0.00 787.50 787.50
12/15/2014 Paydown 161571FL3 125,000.00 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
0.00 61.46 61.46
12/15/2014 Paydown 47787RAC4 138,813.63 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
6,931.06 44.71 6,975.77
12/16/2014 Interest 31331VGU4 250,000.00 FFCB Note
4.875% Due 12/16/2015
0.00 6,093.75 6,093.75
Dec 2014 14,458.69 9,920.81 24,379.50
11/16/2014 Interest 31331J2S1 290,000.00 FFCB Note
1.5% Due 11/16/2015
0.00 2,175.00 2,175.00
11/18/2014 Paydown 43814GAC4 85,000.00 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
0.00 54.54 54.54
11/15/2014 Paydown 161571FL3 125,000.00 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
0.00 61.46 61.46
11/15/2014 Paydown 47787RAC4 138,813.63 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
7,127.12 47.85 7,174.97
11/21/2014 Paydown 43814CAC3 121,000.00 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
7,756.90 35.07 7,791.97
11/30/2014 Interest 912828SY7 210,000.00 US Treasury Note
0.625% Due 5/31/2017
0.00 656.25 656.25
11/27/2014 Interest 3137EACT4 180,000.00 FHLMC Note
2.5% Due 5/27/2016
0.00 2,250.00 2,250.00
11/27/2014 Interest 3135G0KM4 200,000.00 FNMA Note
0.5% Due 5/27/2015
0.00 500.00 500.00
Nov 2014 14,884.02 9,342.67 24,226.69
Cash Flow Report
From 06/30/2014
City of San Jacinto
Account #10167
Payment Date
Transaction
Type CUSIP Quantity Security Description Principal Amount Income Total Amount
PACKET PAGE: 50AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 21
02/17/2015 Interest 3133EADW5 200,000.00 FFCB Note
0.55% Due 8/17/2015
0.00 550.00 550.00
02/18/2015 Paydown 43814GAC4 85,000.00 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
0.00 54.54 54.54
02/15/2015 Paydown 47787RAC4 138,813.63 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
6,538.63 38.67 6,577.30
02/15/2015 Paydown 161571FL3 125,000.00 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
0.00 61.46 61.46
02/21/2015 Paydown 43814CAC3 121,000.00 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
7,068.67 26.04 7,094.71
02/15/2015 Interest 48126EAA5 125,000.00 JP Morgan Note
2% Due 8/15/2017
0.00 1,250.00 1,250.00
02/13/2015 Maturity 40428HPG1 125,000.00 HSBC USA Inc Note
2.375% Due 2/13/2015
125,000.00 1,484.38 126,484.38
02/15/2015 Interest 742718DV8 190,000.00 Procter & Gamble Co Note
1.45% Due 8/15/2016
0.00 1,377.50 1,377.50
02/15/2015 Interest 674599CB9 120,000.00 Occidental Petroleum Note
1.75% Due 2/15/2017
0.00 1,050.00 1,050.00
Feb 2015 138,607.30 11,508.22 150,115.52
01/21/2015 Paydown 43814CAC3 121,000.00 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
7,298.22 28.96 7,327.18
01/15/2015 Interest 912828UG3 200,000.00 US Treasury Note
0.375% Due 1/15/2016
0.00 375.00 375.00
01/18/2015 Paydown 43814GAC4 85,000.00 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
0.00 54.54 54.54
01/15/2015 Paydown 47787RAC4 138,813.63 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
6,734.91 41.64 6,776.55
01/15/2015 Paydown 161571FL3 125,000.00 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
0.00 61.46 61.46
01/28/2015 Interest 3137EADJ5 220,000.00 FHLMC Note
1% Due 7/28/2017
0.00 1,100.00 1,100.00
01/31/2015 Interest 912828SC5 210,000.00 US Treasury Note
0.875% Due 1/31/2017
0.00 918.75 918.75
01/31/2015 Interest 084670BD9 200,000.00 Berkshire Hathaway Note
1.9% Due 1/31/2017
0.00 1,900.00 1,900.00
01/29/2015 Interest 3133ECFV1 225,000.00 FFCB Note
0.43% Due 1/29/2016
0.00 483.75 483.75
01/30/2015 Interest 3135G0GY3 295,000.00 FNMA Note
1.25% Due 1/30/2017
0.00 1,843.75 1,843.75
Jan 2015 14,033.13 8,257.85 22,290.98
Cash Flow Report
From 06/30/2014
City of San Jacinto
Account #10167
Payment Date
Transaction
Type CUSIP Quantity Security Description Principal Amount Income Total Amount
PACKET PAGE: 51AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 22
04/07/2015 Interest 02665WAB7 125,000.00 American Honda Finance Note
1.125% Due 10/7/2016
0.00 703.13 703.13
Apr 2015 12,754.89 10,791.36 23,546.25
03/25/2015 Interest 594918AG9 125,000.00 Microsoft Note
1.625% Due 9/25/2015
0.00 1,015.63 1,015.63
03/29/2015 Interest 3137EADL0 200,000.00 FHLMC Note
1% Due 9/29/2017
0.00 1,000.00 1,000.00
03/31/2015 Interest 912828QA1 195,000.00 US Treasury Note
2.25% Due 3/31/2016
0.00 2,193.75 2,193.75
03/21/2015 Paydown 43814CAC3 121,000.00 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
6,838.99 23.21 6,862.20
03/11/2015 Interest 3133XXP43 270,000.00 FHLB Note
3.125% Due 3/11/2016
0.00 4,218.75 4,218.75
03/11/2015 Interest 313370JB5 275,000.00 FHLB Note
1.75% Due 9/11/2015
0.00 2,406.25 2,406.25
03/09/2015 Interest 313378A43 235,000.00 FHLB Note
1.375% Due 3/9/2018
0.00 1,615.63 1,615.63
03/05/2015 Maturity 713448BX5 125,000.00 Pepsico Inc. Note
0.75% Due 3/5/2015
125,000.00 468.75 125,468.75
03/08/2015 Interest 3137EADC0 220,000.00 FHLMC Note
1% Due 3/8/2017
0.00 1,100.00 1,100.00
03/15/2015 Paydown 47787RAC4 138,813.63 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
6,342.24 35.78 6,378.02
03/18/2015 Paydown 43814GAC4 85,000.00 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
0.00 54.54 54.54
03/15/2015 Paydown 161571FL3 125,000.00 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
0.00 61.46 61.46
03/13/2015 Maturity 191216AX8 125,000.00 Coca Cola Company Note
0.75% Due 3/13/2015
125,000.00 468.75 125,468.75
Mar 2015 263,181.23 14,662.50 277,843.73
02/28/2015 Interest 912828RF9 215,000.00 US Treasury Note
1% Due 8/31/2016
0.00 1,075.00 1,075.00
02/28/2015 Interest 3135G0MZ3 325,000.00 FNMA Note
0.875% Due 8/28/2017
0.00 1,421.88 1,421.88
02/25/2015 Interest 3137EACW7 190,000.00 FHLMC Note
2% Due 8/25/2016
0.00 1,900.00 1,900.00
02/28/2015 Interest 912828NV8 195,000.00 US Treasury Note
1.25% Due 8/31/2015
0.00 1,218.75 1,218.75
Feb 2015 138,607.30 11,508.22 150,115.52
Cash Flow Report
From 06/30/2014
City of San Jacinto
Account #10167
Payment Date
Transaction
Type CUSIP Quantity Security Description Principal Amount Income Total Amount
PACKET PAGE: 52AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 23
05/16/2015 Interest 31331J2S1 290,000.00 FFCB Note
1.5% Due 11/16/2015
0.00 2,175.00 2,175.00
05/18/2015 Paydown 43814GAC4 85,000.00 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
0.00 54.54 54.54
05/15/2015 Paydown 47787RAC4 138,813.63 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
5,949.11 30.27 5,979.38
05/15/2015 Paydown 161571FL3 125,000.00 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
0.00 61.46 61.46
05/21/2015 Paydown 43814CAC3 121,000.00 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
6,379.21 17.83 6,397.04
05/15/2015 Interest 91159HHD5 125,000.00 US Bancorp Callable Note Cont 4/15/2017
1.65% Due 5/15/2017
0.00 1,031.25 1,031.25
05/03/2015 Interest 037833AH3 200,000.00 Apple Inc Note
0.45% Due 5/3/2016
0.00 450.00 450.00
05/09/2015 Interest 36962G4T8 185,000.00 General Electric Capital Corp Note
2.25% Due 11/9/2015
0.00 2,081.25 2,081.25
May 2015 212,328.32 9,307.85 221,636.17
04/15/2015 Paydown 161571FL3 125,000.00 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
0.00 61.46 61.46
04/15/2015 Paydown 47787RAC4 138,813.63 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
6,145.73 32.98 6,178.71
04/18/2015 Paydown 43814GAC4 85,000.00 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
0.00 54.54 54.54
04/11/2015 Interest 3135G0BA0 265,000.00 FNMA Note
2.375% Due 4/11/2016
0.00 3,146.88 3,146.88
04/15/2015 Interest 278642AB9 125,000.00 Ebay Inc Note
1.625% Due 10/15/2015
0.00 1,015.63 1,015.63
04/15/2015 Interest 68389XAN5 200,000.00 Oracle Corp Note
1.2% Due 10/15/2017
0.00 1,200.00 1,200.00
04/30/2015 Interest 912828PE4 195,000.00 US Treasury Note
1.25% Due 10/31/2015
0.00 1,218.75 1,218.75
04/30/2015 Interest 912828RM4 250,000.00 US Treasury Note
1% Due 10/31/2016
0.00 1,250.00 1,250.00
04/26/2015 Interest 3135G0PQ0 175,000.00 FNMA Note
0.875% Due 10/26/2017
0.00 765.63 765.63
04/27/2015 Interest 3135G0JA2 235,000.00 FNMA Note
1.125% Due 4/27/2017
0.00 1,321.88 1,321.88
04/21/2015 Paydown 43814CAC3 121,000.00 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
6,609.16 20.48 6,629.64
Apr 2015 12,754.89 10,791.36 23,546.25
Cash Flow Report
From 06/30/2014
City of San Jacinto
Account #10167
Payment Date
Transaction
Type CUSIP Quantity Security Description Principal Amount Income Total Amount
PACKET PAGE: 53AGENDA ITEM 3A.6
Execution Time: 7/2/2014 11:51:06 AMChandler Asset Management - CONFIDENTIAL Page 24
06/15/2015 Paydown 47787RAC4 138,813.63 John Deere Owner Trust 2012-B A3
0.53% Due 7/15/2016
5,752.38 27.64 5,780.02
06/15/2015 Paydown 161571FL3 125,000.00 Chase CHAIT Pool #2012-A5
0.59% Due 8/15/2017
0.00 61.46 61.46
06/21/2015 Paydown 43814CAC3 121,000.00 Honda Auto Receivables 2013-1 A3
0.48% Due 11/21/2016
6,149.10 15.28 6,164.38
06/21/2015 Interest 313379DD8 260,000.00 FHLB Note
1% Due 6/21/2017
0.00 1,300.00 1,300.00
06/18/2015 Paydown 43814GAC4 85,000.00 Honda Auto Receivables 2014-2 A3
0.77% Due 3/19/2018
0.00 54.54 54.54
06/16/2015 Interest 31331VGU4 250,000.00 FFCB Note
4.875% Due 12/16/2015
0.00 6,093.75 6,093.75
06/05/2015 Maturity 69371RK62 150,000.00 Paccar Financial Corp Note
1.05% Due 6/5/2015
150,000.00 787.50 150,787.50
06/11/2015 Interest 313371NW2 225,000.00 FHLB Note
1.375% Due 12/11/2015
0.00 1,546.88 1,546.88
Jun 2015 161,901.48 9,887.05 171,788.53
05/27/2015 Interest 3137EACT4 180,000.00 FHLMC Note
2.5% Due 5/27/2016
0.00 2,250.00 2,250.00
05/31/2015 Interest 912828SY7 210,000.00 US Treasury Note
0.625% Due 5/31/2017
0.00 656.25 656.25
05/27/2015 Maturity 3135G0KM4 200,000.00 FNMA Note
0.5% Due 5/27/2015
200,000.00 500.00 200,500.00
May 2015 212,328.32 9,307.85 221,636.17
Total 1,405,933.17 134,148.26 1,540,081.43
Cash Flow Report
From 06/30/2014
City of San Jacinto
Account #10167
Payment Date
Transaction
Type CUSIP Quantity Security Description Principal Amount Income Total Amount
PACKET PAGE: 54AGENDA ITEM 3A.6
City of San Jacinto
Monthly Portfolio ReportMonthly Portfolio Report
June 30, 2014PACKET PAGE: 55AGENDA ITEM 3A.6
CITY OF SAN JACINTO MONTHLY PORTFOLIO REPORT
JUNE 30, 2014
PORTFOLIO SUMMARY INFORMATION SECTOR & CREDIT QUALITY DISTRIBUTION
Total Par Value 9,901,392
Market Value 10,059,964.81
Accrued Interest 34,823.30
Total Market Value 10,094,788.11
Amortized Book Value 10,046,177.54
Net Unrealized Gain/Loss 13,787.27
Effective Maturity 1.86
Effective Duration 1.83
Average Coupon 1.624%
Average Yield on Cost 0.602%
Average Yield on Market 0.523%
Average S&P Rating AA
Sector (U.S.) MVw/o Acc
Cash & Equivalents 146,391.75
U.S. Treasuries 7,274,999.94
Federal Agencies 509,042.97
Corporates 2,129,530.15
1.5%
5.1%
21.2%
COUPON DISTRIBUTION
Coupon % MVw/o Acc Average Coupon
0% - 1% 2,280,436.47 0.819%
1% - 2% 4,066,958.90 1.309%
2% - 3% 3,170,149.97 2.225%
3% - 4% 384,300.37 3.460%
4% - 5%
5% - 6% 158,119.10 5.125%
6% - 7%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
0%-1%1%-2%2%-3%3%-4%4%-5%5%-6%6%-7%$(000)MVw/oAcc
72.3%
Cash& Equivalents U.S.Treasuries
FederalAgencies Corporates
S&P Quality MVw/o Acc
AAA 146,391.75
AA 8,870,544.09
A 790,766.47
Below A 252,262.50
1.5%
88.2%
7.9%2.5%
AAA AA A BelowAPACKET PAGE: 56AGENDA ITEM 3A.6
CITY OF SAN JACINTO MONTHLY PORTFOLIO REPORT
JUNE 30, 2014
MATURITY DISTRIBUTION
Maturity(Yrs) MVw/o Acc
0.00 - 0.49 554,600.35
0.50 - 0.99 126,530.87
1.00 - 1.49 1,735,400.22
1.50 - 1.99 2,688,585.42
2.00 - 2.49 2,846,062.77
2.50 - 2.99 2,108,785.18
3.00 - 3.49 0.00
3.50 - 3.99 0.00
4.00 - 4.49 0.00
4.50 - 4.99 0.00
5.00+0.00
500
1,000
1,500
2,000
2,500
3,000
$(000)MVw/oAcc
DURATION & YIELD DISTRIBUTION
5.00+0.00 0
0.00-0.490.50-0.991.00-1.491.50-1.992.00-2.492.50-2.993.00-3.493.50-3.994.00-4.494.50-4.995.00+Eff Dur % Held (MV) YTW Eff Dur
0.00 - 0.49 6.771% 0.339% 0.14
0.50 - 0.99 5.107% 0.333% 0.96
1.00 - 1.49 15.806% 0.582% 1.29
1.50 - 1.99 27.629% 0.374% 1.76
2.00 - 2.49 28.222% 0.575% 2.26
2.50 - 2.99 16.466% 0.763% 2.68
3.00 - 3.49
3.50 - 3.99
4.00 - 4.49
4.50 - 4.99
5.00+
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
0.90%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%0.00-0.490.50-0.991.00-1.491.50-1.992.00-2.492.50-2.993.00-3.493.50-3.994.00-4.494.50-4.995.00+Yield(%)MarketValuePercentage(%)EffectiveDuration Bucket
%of Market Value (Left Axis)
PortfolioYield(RightAxis)PACKET PAGE: 57AGENDA ITEM 3A.6
CITY OF SAN JACINTO MONTHLY PORTFOLIO REPORT
JUNE 30, 2014
PORTFOLIO HOLDINGS
Purchase Original Yield Amortized Market Market Value Accrued Market Value Yield Gain/ Moody's S&P Effective Effective % Market
CUSIP Issuer Name Coupon Maturity Par Value Date Cost Value on Cost Book Value Price w/o Accrued Interest w/ Accrued on Market Loss Rating Rating Maturity Duration Value
Cash & Equivalents
FGVXX First American Government Obligations - Class Y 0.010% 07/01/14 146,392 146,391.75 0.010% 146,391.75 100.000 146,391.75 0.65 146,392.40 0.010% 0.00 Aaa AAA 0.00 0.00 1.46%
Total Cash & Equivalents 146,392 146,391.75 0.010% 146,391.75 146,391.75 0.65 146,392.40 0.010% 0.00 Aaa AAA 0.00 0.00 1.46%
U.S. TreasuryBonds
912828PS3 US Treasury Notes/Bonds 2.000% 01/31/16 450,000 05/02/13 471,199.22 0.272% 462,293.65 102.707 462,181.50 3,754.14 465,935.64 0.288% -112.15 Aaa AA+ 1.58 1.56 4.59%
912828QJ2 US Treasury Notes/Bonds 2.125% 02/29/16 450,000 06/04/13 470,847.66 0.419% 462,729.18 103.000 463,500.00 3,196.16 466,696.16 0.321% 770.82 Aaa AA+ 1.67 1.63 4.61%
912828QA1 US Treasury Notes/Bonds 2.250% 03/31/16 430,000 04/04/13 454,691.41 0.311% 444,529.56 103.301 444,193.44 2,431.97 446,625.41 0.358% -336.12 Aaa AA+ 1.75 1.72 4.42%
912828QF0 US Treasury Notes/Bonds 2.000% 04/30/16 450,000 06/04/13 469,775.39 0.472% 462,524.19 102.945 463,253.85 1,516.30 464,770.15 0.387% 729.66 Aaa AA+ 1.83 1.80 4.60%
912828QP8 US Treasury Notes/Bonds 1.750% 05/31/16 475,000 12/03/13 490,864.26 0.399% 487,244.05 102.531 487,023.20 704.06 487,727.26 0.423% -220.85 Aaa AA+ 1.92 1.89 4.84%
912828QR4 US Treasury Notes/Bonds 1.500% 06/30/16 450,000 10/02/13 461,636.72 0.548% 458,503.56 102.062 459,281.25 18.34 459,299.59 0.463% 777.69 Aaa AA+ 2.00 1.98 4.57%
912828QX1 US Treasury Notes/Bonds 1.500% 07/31/16 490,000 08/02/13 503,092.19 0.595% 499,165.00 102.078 500,182.69 3,065.88 503,248.57 0.497% 1,017.69 Aaa AA+ 2.08 2.05 4.97%
912828RF9 US Treasury Notes/Bonds 1.000% 08/31/16 470,000 09/04/13 471,615.63 0.883% 471,178.14 101.031 474,846.64 1,570.92 476,417.56 0.521% 3,668.50 Aaa AA+ 2.17 2.14 4.72%
912828RJ1 US Treasury Notes/Bonds 1.000% 09/30/16 250,000 11/04/13 253,076.17 0.571% 252,392.15 100.969 252,422.00 628.42 253,050.42 0.566% 29.85 Aaa AA+ 2.25 2.22 2.51%
912828RJ1 US Treasury Notes/Bonds 1.000% 09/30/16 225,000 03/04/14 227,645.51 0.538% 227,317.87 100.969 227,179.80 565.57 227,745.37 0.566% -138.07 Aaa AA+ 2.25 2.22 2.26%
912828RM4 US Treasury Notes/Bonds 1.000%10/31/16 450,000 01/06/14 453,515.63 0.719%452,924.98 100.937 454,218.75 758.15 454,976.90 0.595%1,293.77 Aaa AA+2.33 2.31 4.52%912828RM4 US Treasury Notes/Bonds 1.000%10/31/16 450,000 01/06/14 453,515.63 0.719%452,924.98 100.937 454,218.75 758.15 454,976.90 0.595%1,293.77 Aaa AA+2.33 2.31 4.52%
912828RU6 US Treasury Notes/Bonds 0.875% 11/30/16 475,000 12/03/13 479,286.13 0.570% 478,474.59 100.617 477,931.64 352.03 478,283.67 0.617% -542.95 Aaa AA+ 2.42 2.39 4.75%
912828RX0 US Treasury Notes/Bonds 0.875% 12/31/16 450,000 02/03/14 453,251.95 0.623% 452,807.52 100.523 452,355.30 10.70 452,366.00 0.664% -452.22 Aaa AA+ 2.50 2.48 4.50%
912828SC5 US Treasury Notes/Bonds 0.875% 01/31/17 250,000 03/04/14 251,445.31 0.674% 251,287.46 100.445 251,113.25 912.47 252,025.72 0.701% -174.21 Aaa AA+ 2.58 2.55 2.50%
912828SJ0 US Treasury Notes/Bonds 0.875% 02/28/17 500,000 04/02/14 499,472.66 0.912% 499,515.87 100.367 501,835.94 1,462.30 503,298.24 0.736% 2,320.07 Aaa AA+ 2.67 2.63 4.99%
912828SM3 US Treasury Notes/Bonds 1.000% 03/31/17 450,000 05/02/14 451,828.13 0.858% 451,732.68 100.594 452,672.10 1,131.15 453,803.25 0.781% 939.42 Aaa AA+ 2.75 2.70 4.50%
912828SS0 US Treasury Notes/Bonds 0.875% 04/30/17 450,000 06/04/14 450,808.60 0.812% 450,789.73 100.180 450,808.59 663.38 451,471.97 0.811% 18.86 Aaa AA+ 2.83 2.79 4.48%
Total U.S. TreasuryBonds 7,165,000 7,314,052.57 0.600% 7,265,410.18 7,274,999.94 22,741.94 7,297,741.88 0.541% 9,589.76 Aaa AA+ 2.20 2.17 72.32%
Federal AgencyBonds
3137EACM9 Federal Home Loan Mortgage Corporation 1.750% 09/10/15 500,000 11/20/12 518,940.00 0.383% 508,136.60 101.809 509,042.97 2,697.92 511,740.89 0.233% 906.37 Aaa AA+ 1.17 1.18 5.06%
Total Federal AgencyBonds 500,000 518,940.00 0.383% 508,136.60 509,042.97 2,697.92 511,740.89 0.233% 906.37 Aaa AA+ 1.17 1.18 5.06%
Corporate Bonds
87612EAW6 Target Corp 1.125% 07/18/14 250,000 11/13/12 252,922.50 0.423% 250,081.86 100.036 250,089.50 1,273.44 251,362.94 0.407% 7.64 A2 A 0.08 0.05 2.49%
0258M0CZ0 American Express Credit Corp 5.125% 08/25/14 157,000 11/13/12 169,465.80 0.620% 158,064.97 100.713 158,119.10 2,816.19 160,935.29 0.448% 54.13 A2 A- 0.17 0.15 1.57%
824348AN6 Sherwin-Williams Co 3.125% 12/15/14 125,000 11/13/12 131,810.00 0.490% 126,504.31 101.225 126,530.87 173.61 126,704.48 0.447% 26.56 A3 A- 0.50 0.46 1.26%
372917AQ7 Genzyme Corp 3.625% 06/15/15 250,000 10/26/12 269,797.50 0.577% 257,254.47 103.108 257,769.50 402.78 258,172.28 0.373% 515.03 A1 AA 1.00 0.95 2.56%
14912L4M0 Caterpillar Fin Serv Crp 2.750% 06/24/15 250,000 10/26/12 263,980.00 0.616% 255,207.58 102.411 256,027.00 133.68 256,160.68 0.293% 819.42 A2 A 1.00 0.98 2.55%
24702RAL5 Dell Inc 2.300% 09/10/15 250,000 10/26/12 260,307.50 0.836% 254,334.67 100.905 252,262.50 1,772.92 254,035.42 1.532% -2,072.17 B1 B+ 1.17 1.17 2.51%
36962G4T8 General Electric Capital Corp 2.250% 11/09/15 450,000 10/25/12 467,185.50 0.966% 457,776.14 102.288 460,298.25 1,462.50 461,760.75 0.556% 2,522.11 A1 AA+ 1.33 1.34 4.58%
78008KBS1 Royal Bank of Canada 2.625% 12/15/15 250,000 10/25/12 264,480.00 0.746% 256,793.42 103.174 257,935.50 291.67 258,227.17 0.439% 1,142.08 Aa3 AA- 1.50 1.44 2.56%
459200GU9 IBMCorp 2.000% 01/05/16 108,000 10/26/12 112,639.68 0.632% 110,221.59 102.313 110,497.93 1,056.00 111,553.93 0.465% 276.34 Aa3 AA- 1.50 1.48 1.10%
Total Corporate Bonds 2,090,000 2,192,588.48 0.700% 2,126,239.01 2,129,530.15 9,382.79 2,138,912.94 0.567% 3,291.14 A2 A 0.98 0.96 21.17%
Portfolio Totals 1.624% 9,901,392 10,171,972.80 0.602% 10,046,177.54 101.601 10,059,964.81 34,823.30 10,094,788.11 0.523% 13,787.27 Aa1 AA 1.86 1.83 100%PACKET PAGE: 58AGENDA ITEM 3A.6
CITY OF SAN JACINTO MONTHLY PORTFOLIO REPORT
JUNE 30, 2014
PORTFOLIO TRANSACTIONS
Trade Settle Unit Amortized Unit Sale/Purchased Total Cost/ Net
Date Date Quantity Security Coupon Maturity Par Value Cost Book Value Price Principal Accrued Interest Proceeds Gain/Loss
Purchases
06/04/14 06/06/14 450,000 US Treasury Notes/Bonds 0.875% 04/30/17 450,000 100.18 450,808.60 395.89 451,204.49
Total Purchases 450,000 450,808.60 395.89 451,204.49
Sales
06/04/14 06/06/14 450,000 US Treasury Notes/Bonds 1.750% 07/31/15 450,000 101.72 457,732.14 101.84 458,296.88 2,741.02 461,037.90 564.74
Total Sales 450,000 457,732.14 458,296.88 2,741.02 461,037.90 564.74PACKET PAGE: 59AGENDA ITEM 3A.6
CITY OF SAN JACINTO MONTHLY PORTFOLIO REPORT
JUNE 30, 2014
PORTFOLIO INTEREST EARNINGS
Beginning Adjusted Ending
Security Accrued Purchased Sold Interest Earned Amortization/ Interest Accrued
Symbol Description Coupon Maturity Interest Interest Interest Received Interest Accretion Earned Interest
U.S. TreasuryBonds
912828NP1 US Treasury Notes/Bonds 1.750% 07/31/15 2,632.25 0.00 -2,741.02 0.00 108.77 -110.56 -1.79 0.00
912828PS3 US Treasury Notes/Bonds 2.000% 01/31/16 3,008.29 0.00 0.00 0.00 745.86 -635.53 110.33 3,754.14
912828QJ2 US Treasury Notes/Bonds 2.125% 02/29/16 2,416.61 0.00 0.00 0.00 779.55 -625.79 153.76 3,196.16
912828QA1 US Treasury Notes/Bonds 2.250% 03/31/16 1,638.93 0.00 0.00 0.00 793.03 -680.19 112.85 2,431.97
912828QF0 US Treasury Notes/Bonds 2.000% 04/30/16 782.61 0.00 0.00 0.00 733.70 -559.09 174.61 1,516.30
912828QP8 US Treasury Notes/Bonds 1.750% 05/31/16 22.71 0.00 0.00 0.00 681.35 -522.65 158.70 704.06
912828QR4 US Treasury Notes/Bonds 1.500% 06/30/16 2,834.25 0.00 0.00 -3,375.00 559.09 -347.47 211.62 18.34
912828QX1 US Treasury Notes/Bonds 1.500% 07/31/16 2,456.77 0.00 0.00 0.00 609.12 -358.98 250.14 3,065.88
912828RF9 US Treasury Notes/Bonds 1.000% 08/31/16 1,187.77 0.00 0.00 0.00 383.15 -44.19 338.97 1,570.92
912828RJ1 US Treasury Notes/Bonds 1.000% 09/30/16 804.64 0.00 0.00 0.00 389.34 -170.79 218.56 1,193.99
912828RM4 US Treasury Notes/Bonds 1.000% 10/31/16 391.30 0.00 0.00 0.00 366.85 -101.98 264.87 758.15
912828RU6 US Treasury Notes/Bonds 0.875% 11/30/16 11.36 0.00 0.00 0.00 340.68 -117.21 223.47 352.03
912828RX0 US Treasury Notes/Bonds 0.875% 12/31/16 1,653.31 0.00 0.00 -1,968.75 326.13 -91.41 234.72 10.70
912828SC5 US Treasury Notes/Bonds 0.875% 01/31/17 731.18 0.00 0.00 0.00 181.28 -40.51 140.78 912.47
912828SJ0 US Treasury Notes/Bonds 0.875% 02/28/17 1,105.64 0.00 0.00 0.00 356.66 14.74 371.40 1,462.30
912828SM3 US Treasury Notes/Bonds 1.000% 03/31/17 762.30 0.00 0.00 0.00 368.85 -51.15 317.70 1,131.15
912828SS0 US Treasury Notes/Bonds 0.875% 04/30/17 0.00 395.89 0.00 0.00 267.49 -18.87 248.62 663.38
Total U.S. TreasuryBonds 22,439.92 395.89 -2,741.02 -5,343.75 7,990.90 -4,461.63 3,529.31 22,741.94
Federal AgencyBonds
3137EACM9 Federal Home Loan Mortgage Corporation 1.750% 09/10/15 1,968.75 0.00 0.00 0.00 729.17 -558.49 170.68 2,697.92
Total Federal AgencyBonds 1,968.75 0.00 0.00 0.00 729.17 -558.49 170.68 2,697.92PACKET PAGE: 60AGENDA ITEM 3A.6
CITY OF SAN JACINTO MONTHLY PORTFOLIO REPORT
JUNE 30, 2014
PORTFOLIO INTEREST EARNINGS (CONTINUED)
Beginning Adjusted Ending
Security Accrued Purchased Sold Interest Earned Amortization/ Interest Accrued
Symbol Description Coupon Maturity Interest Interest Interest Received Interest Accretion Earned Interest
Corporate Bonds
87612EAW6 Target Corp 1.125% 07/18/14 1,039.06 0.00 0.00 0.00 234.37 -144.42 89.96 1,273.44
0258M0CZ0 American Express Credit Corp 5.125% 08/25/14 2,145.67 0.00 0.00 0.00 670.52 -580.48 90.04 2,816.19
824348AN6 Sherwin-Williams Co 3.125% 12/15/14 1,801.22 0.00 0.00 -1,953.13 325.53 -269.88 55.65 173.61
372917AQ7 Genzyme Corp 3.625% 06/15/15 4,178.82 0.00 0.00 -4,531.25 755.21 -621.73 133.48 402.78
14912L4M0 Caterpillar Fin Serv Crp 2.750% 06/24/15 2,998.26 0.00 0.00 -3,437.50 572.92 -434.96 137.95 133.68
24702RAL5 Dell Inc 2.300% 09/10/15 1,293.75 0.00 0.00 0.00 479.17 -296.67 182.50 1,772.92
36962G4T8 General Electric Capital Corp 2.250% 11/09/15 618.75 0.00 0.00 0.00 843.75 -467.07 376.68 1,462.50
78008KBS1 Royal Bank of Canada 2.625%12/15/15 3,026.04 0.00 0.00 -3,281.25 546.87 -380.89 165.98 291.6778008KBS1Royal Bank of Canada 2.625%12/15/15 3,026.04 0.00 0.00 -3,281.25 546.87 -380.89 165.98 291.67
459200GU9 IBMCorp 2.000% 01/05/16 876.00 0.00 0.00 0.00 180.00 -119.91 60.09 1,056.00
Total Corporate Bonds 17,977.57 0.00 0.00 -13,203.13 4,608.34 -3,316.01 1,292.33 9,382.79
Cash & Equivalents
FGVXX First American Government Obligations - Class Y 0.010% 07/01/14 0.57 0.00 0.00 -0.57 0.65 0.00 0.65 0.65
Total Cash & Equivalents 0.57 0.00 0.00 -0.57 0.65 0.00 0.65 0.65
Portfolio Totals 42,386.81 395.89 -2,741.02 -18,547.45 13,329.06 -8,336.13 4,992.97 34,823.30PACKET PAGE: 61AGENDA ITEM 3A.6
CITY OF SAN JACINTO MONTHLY PORTFOLIO REPORT
JUNE 30, 2014
PORTFOLIO CASH LEDGER
Trade Settle
Date Date Activity Description Amount
Cash
06/01/14 Beginning Balance 0.00
06/02/14 Addition to Portfolio 0.57
06/03/14 Withdrawal from Portfolio -0.57
06/30/14 Ending Balance 0.00
First American Government Obligations - Class Y
06/01/14 Beginning Balance 111,880.68
06/02/14 06/02/14 Transfer from Delayed Interest Account 4,156.25
06/02/14 06/02/14 Transfer from Delayed Interest Account 2,078.13
06/03/14 06/03/14 Transfer from MMF Dividend 0.57
06/04/14 06/06/14 Sale US Treasury Notes/Bonds 458,296.88
06/04/14 06/06/14 Purchase US Treasury Notes/Bonds -450,808.60
06/04/14 06/06/14 Accrued Interest US Treasury Notes/Bonds 2,741.02
06/04/14 06/06/14 Accrued Interest US Treasury Notes/Bonds -395.89
06/16/14 06/16/14 Interest Genzyme Corp 4,531.25
06/16/14 06/16/14 Interest Royal Bank of Canada 3,281.25
06/16/14 06/16/14 Interest Sherwin-Williams Co 1,953.13
06/24/14 06/24/14 Interest Caterpillar Fin Serv Crp 3,437.50
06/25/14 Withdrawal from Portfolio -104.17
06/30/14 06/30/14 Interest US Treasury Notes/Bonds 3,375.00
06/30/14 06/30/14 Interest US Treasury Notes/Bonds 1,968.75
06/30/14 Ending Balance 146,391.75PACKET PAGE: 62AGENDA ITEM 3A.6
CITY OF SAN JACINTO MONTHLY PORTFOLIO REPORT
JUNE 30, 2014
PORTFOLIO PERFORMANCE
Total Return Current Prior 3 Prior 12 Year to Inception 3-Years 5-Years 11/30/12
as of 06/30/2014 Month Months Months Date 11/30/12
City of San Jacinto -0.03 0.35 1.01 0.50 1.01 - - 0.64
BofAMerrill 1-3 Year Treasury -0.04 0.27 0.76 0.41 0.80 0.63 1.18 0.51
Average Annualized Returns
PACKET PAGE: 63AGENDA ITEM 3A.6
CITY OF SAN JACINTO MONTHLY PORTFOLIO REPORT
JUNE 30, 2014
PORTFOLIO COMPLIANCE
Section Description Compliance Requirement BLXComment
IX. 2 U.S. Treasury No limitations Compliant
IX. 3 FederalAgency No limitations Compliant
IX. 7 CDARS 30% limitin combination of CD's (including CDARS); 5-year maturity limit Compliant
Issuer musthavelong-term debtrated A or higher and/or short-termdebt
IX. 5 Federally Insured Time
Deposits Limited to amounts covered under federalinsurance; 5-year maturity limit Compliant
IX. 6 TimeDeposits
Fully collateralized per CA law, 20% limitwhen combined with IX. 5; Issuer
musthavelong-termdebt rated A or higher or short-termdebtrated A1 or
higher by 2 NRSRO's, 5-year maturity limit
Compliant
IX. 1 MunicipalBonds Rated in 4 highestgeneralclassifications by nationally recognized rating
service; 5% issuer limitation Compliant
IX. 4 Bankers Acceptances Rated A1 or better and havelong termdebtrated A or better by 2 NRSRO's;
Maturity ≤ to 180 days, 40% total portfolio limit, 5% issuer limit Compliant
Section Description Compliance Requirement BLXComment
IX. 16 MutualFunds Authorized by CA GovernmentCodeSection 53601 Compliant
X.A.1 Futures and Options Prohibited Compliant
X.A.2 InverseFloaters, Range
Notes, and IO Strips Prohibited Compliant
IX. 14 Pass-Through Securities Issuer debtrated atleastA by 2 NRSRO; Mustberated in theAA category by
2 NRSRO's; 20% totalportfolio limit, 5-year maturity limit Compliant
IX. 15 Money MarketFunds
Registerd with SEC under 1940 Act, havehighestranking by 2 NRSRO's;
Retained advisor registered (or exemptfromregistration) with 5 years
experienceinvesting in securities authorized by CA 53601 and atleast$500
million of assets; 20% total portfolio limit, 10% per fund limit
Compliant
CorporateBonds
Corporations organized and operating in theU.S. or depository institutions
licensed by theU.S. or any stateand operating in theU.S.; Rated in theA
category or better by 2 NRSRO's, 5-year maturity limit; 30% totalportfolio
limit, 5% issuer limit
Compliance
Exception
Noted1
IX. 13
IX. 11 LAIF 70% totalportfolio limit, up to themaximumpermitted balance Compliant
IX. 12 LocalGovernment
InvestmentPools
RiversideCounty InvestmentFund limited to 70% of theportfolio; JPA Pools
limited to 50% of theportfolio Compliant
IX. 9 RepurchaseAgreements
Collateralized at102% in accordancewith policy; 1-year maturity limit, no %
portfolio limit, collateralheld by custodian bank; Subjectto master
repurchaseagreementsubstantially in SIFMA's form
Compliant
IX. 10 CommercialPaper
Issuer is organized and operating in theU.S. with assets of atleast$500
million; Issuer short-term ratings of A1 or higher and long-termratings of A
or higher by 2 NRSRO's; Maturity ≤ 270 days; 25% total portfolio limit; 5%
issuer limit
Compliant
IX. 8 NegotiableCD's
Issuer musthavelong-term debtrated A or higher and/or short-termdebt
rated A1 or higher by 2 NRSRO's; Maturity ≤to 5 years, 30% totalportfolio
limit, 5% issuer limit
Compliant X.A.3 PotentialZero Accruals Prohibited Compliant
X.A.5 Purchases on Margin Prohibited Compliant
X.A.6 ReverseRepos &
Leverage Prohibited Compliant
X.A.7 Foreign $ Securities Prohibited Compliant
X.B.2 SingleIssuer Limitation 5% issuer limitation, exceptU.S. Governmentand its agencies & enterprises Compliant
X.C.2 CallableSecurities 20% of totalportfolio (excluding MakeWholeCallsecurities) Compliant
X.C.3 MaximumMaturity Individualsecurity maturities limited to 5 years or less Compliant
X.A.2 Notes, and IO Strips Prohibited Compliant
X.C.4 Portfolio Duration
Limitation
Averageportfolio duration willbemanaged to beapproximatly equalto the
MarketBenchmark selected by theCity (typically +/- 20 of benchmark
duration)
Compliant
1 InFebruary2013, the Dell2.30% 9/10/2015 Bonds, CUSIP24702RAL5 (the“Dell Bonds”),weredowngradedby Moody’sInvestorService (“Moody’s”)toBaa1 fromA2. Inaddition, Fitch Ratings (“Fitch”) lowered theratings on
theDellBonds to BB+ fromA. The downgradeto below the“A” category byboth Moody’sand Fitch caused the DellBonds to be out of compliance with the City’sInvestmentPolicy which requirescorporate mediumtermnotes
tohave arating in the“A” categoryor betterbyat least two nationally recognized statistical rating organizations (“NRSRO’s”). Furthermore,Standard& Poor’s(“S&P”) downgradedtheDell Bonds to BBB fromA-in May 2013. In
September2013, theDell bonds receivedadditional downgrades;S&P loweredratings to B+fromBBB and Fitch loweredratings to B+ fromBB+. Moody’sthenloweredratings to B1 from Baa1 in October2013. Based upon
discussionsbetweenBLX GroupLLC (“BLX”) and theCity, the City has elected to retain theDell Bonds in theportfolio. This decision is basedupon the relatively short remainingtermto maturity of the DellBonds and theoutlook
thatDell will maintain theresourcesto fully serviceits debtobligations. The City, togetherwith BLX, will continue to monitorthe status ofthe Dell Bonds and BLX will providemonthly status updates in accordance with the
requirementsoftheInvestmentPolicy. Pleaseseetheaccompanying memorandumforfurtherdetails.PACKET PAGE: 64AGENDA ITEM 3A.6
TO CITY OF SAN JACINTO
FROM BLX GROUP LLC
DATE JUNE 30, 2014
RE DOWNGRADE OF DELL BO
On October 29, 2013, the group (the “Dell/Silver Lake Group”) comprised of Dell’s Chairman and Chief
Executive Officer, Michael Dell (“Mr. Dell”), and private equity firm Silver Lake Partners completed the leveraged
buyout transaction (the “Go-Private Transaction”) that they first introduced on February 5, 2013 and later
amended on August 2, 2013. The Dell/Silver Lake Group funded th
debt financing arrangements, cash equity contributions, and cash on hand at Dell and its subsidiaries.
As of month end, the City’s Dell Bonds (“Dell Bonds”) hold a rating of B+ by S&P, B1 by Moody’s, and B+ by
Fitch.
As reflected in Table 1, the average observed closing price for the Dell Bonds on
compared to 101.116 on May 30. The average observed closing yield on the Dell Bonds was 1.
compared to 1.41% at the end of May.
June at 173 basis points (1.73%) compared to 1
Interactive Data, a leading provider of security pricing services, values the D
100.91, up from 100.63 at the end of May
indication equates to an unrealized loss of approximately $
date, results in a net unrealized gain of approximately $
would depend upon market conditions and security pricing at the time of sale.
Based upon discussions between BLX Group LLC (“BLX”) and the City, th
Bonds in the portfolio rather than sell and realize a market loss on the position. This decision is based upon the
relatively short remaining term to maturity of the Dell Bonds and the outlook that a post
Dell will maintain the resources to fully service its debt obligations. The City, together with BLX, will continue to
monitor the status of the Dell Bonds and BLX will provide monthly status updates in accordance with the
requirements of the Investment Policy.
M e m o r a n d u m
CITY OF SAN JACINTO
DOWNGRADE OF DELL BONDS IN CITY INVESTMENT PORTFOLIO
On October 29, 2013, the group (the “Dell/Silver Lake Group”) comprised of Dell’s Chairman and Chief
l (“Mr. Dell”), and private equity firm Silver Lake Partners completed the leveraged
Private Transaction”) that they first introduced on February 5, 2013 and later
amended on August 2, 2013. The Dell/Silver Lake Group funded the $24.9 billion Go-Private Transaction with
debt financing arrangements, cash equity contributions, and cash on hand at Dell and its subsidiaries.
As of month end, the City’s Dell Bonds (“Dell Bonds”) hold a rating of B+ by S&P, B1 by Moody’s, and B+ by
As reflected in Table 1, the average observed closing price for the Dell Bonds on June 27 was 10
30. The average observed closing yield on the Dell Bonds was 1.
.The average observed spread to a duration-matched Treasury closed
%) compared to 128 basis points (1.28%) at the end of May. As of month’s end,
Interactive Data, a leading provider of security pricing services, values the Dell Bonds at a market price of
May. Based upon the City’s amortized cost of 101.73
indication equates to an unrealized loss of approximately $2,070, which when adjusted for interest earned to
e, results in a net unrealized gain of approximately $1,520 or 0.58%. Of course, any realized gain or loss
would depend upon market conditions and security pricing at the time of sale.
Based upon discussions between BLX Group LLC (“BLX”) and the City, the City has elected to retain the Dell
Bonds in the portfolio rather than sell and realize a market loss on the position. This decision is based upon the
relatively short remaining term to maturity of the Dell Bonds and the outlook that a post-Go
Dell will maintain the resources to fully service its debt obligations. The City, together with BLX, will continue to
monitor the status of the Dell Bonds and BLX will provide monthly status updates in accordance with the
vestment Policy.
M e m o r a n d u m
On October 29, 2013, the group (the “Dell/Silver Lake Group”) comprised of Dell’s Chairman and Chief
l (“Mr. Dell”), and private equity firm Silver Lake Partners completed the leveraged
Private Transaction”) that they first introduced on February 5, 2013 and later
Private Transaction with
debt financing arrangements, cash equity contributions, and cash on hand at Dell and its subsidiaries.
As of month end, the City’s Dell Bonds (“Dell Bonds”) hold a rating of B+ by S&P, B1 by Moody’s, and B+ by
was 100.510
30. The average observed closing yield on the Dell Bonds was 1.86% on June 27
matched Treasury closed
. As of month’s end,
ell Bonds at a market price of
73, this market price
,070, which when adjusted for interest earned to
%. Of course, any realized gain or loss
e City has elected to retain the Dell
Bonds in the portfolio rather than sell and realize a market loss on the position. This decision is based upon the
Go-Private-Transaction
Dell will maintain the resources to fully service its debt obligations. The City, together with BLX, will continue to
monitor the status of the Dell Bonds and BLX will provide monthly status updates in accordance with the
PACKET PAGE: 65
AGENDA ITEM 3A.6
Table 1: TRACE Trade History
Date High Low Last Avg High
5/30/2014 101.630 100.602 100.950 101.116 1.816
6/2/2014 101.110 100.930 101.110 101.020 1.553
6/3/2014 101.000 100.625 100.980 100.813 1.796
6/4/2014 101.630 101.125 101.125 101.377 1.390
6/5/2014 100.940 100.499 100.700 100.720 1.893
6/6/2014 101.429 100.368 101.429 100.898 1.999
6/9/2014 100.702 100.324 100.702 100.513 2.034
6/10/2014 101.881 100.650 100.750 101.265 1.767
6/12/2014 100.800 100.574 100.775 100.687 1.825
6/13/2014 101.570 100.821 101.140 101.195 1.621
6/16/2014 100.800 100.100 100.100 100.450 2.215
6/17/2014 100.750 100.750 100.750 100.750 1.676
6/18/2014 100.771 100.700 100.771 100.736 1.714
6/20/2014 100.700 100.400 100.400 100.550 1.962
6/23/2014 100.810 100.310 100.775 100.560 2.037
6/24/2014 101.030 100.651 100.750 100.840 1.750
6/25/2014 101.125 100.905 101.125 101.015 1.532
6/26/2014 100.750 100.249 100.750 100.500 2.086
6/27/2014 100.771 100.249 100.651 100.510 2.086
Monthly
Average:101.032 100.568 100.821 100.800 1.830
Price
98
99
100
101
102
103
104
Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13PriceGraph1: Dell Bond Price
50
100
150
200
250
300
Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13SpreadGraph3: Dell Bond Spread
High Low Last Avg Vol(M) Trds Dlr Buy Dlr Sell
1.816 1.001 1.539 1.409 440 8 100
1.553 1.410 1.410 1.482 2,150 3 1,000 1,150
1.796 1.496 1.512 1.646 1,203 4 175
1.390 0.987 1.390 1.189 50 2 0
1.893 1.537 1.730 1.715 1,016 5 11
1.999 1.142 1.142 1.570 67 6 47
2.034 1.726 1.726 1.880 20 2 10
1.767 0.774 1.686 1.271 164 14 27
1.825 1.640 1.660 1.732 141 5 46
1.621 1.010 1.360 1.315 1,250 8 125
2.215 1.637 2.215 1.926 164 5 132
1.676 1.676 1.676 1.676 150 2 75
1.714 1.655 1.655 1.684 24 4 12
1.962 1.711 1.962 1.837 49 6 40
2.037 1.618 1.647 1.828 345 9 207
1.750 1.432 1.667 1.591 260 8 71
1.532 1.347 1.347 1.439 2,000 2 1,000 1,000
2.086 1.661 1.661 1.873 395 3 295
2.086 1.642 1.743 1.864 52 3 32
1.830 1.450 1.622 1.640 528 5 184
Yield Dealer to Client Volume(M)
Feb-14 Apr-14 Jun-14
Source:Bloomberg
0.80
1.30
1.80
2.30
2.80
3.30
Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 OctYieldGraph2: Dell Bond Yield
Feb-14 Apr-14 Jun-14
Source:Bloomberg
9
10
11
12
13
14
15
Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 OctPriceGraph4: Dell Equity Price
City of San Jacinto
June 30, 2014
Page 2
D→D
Dlr Sell Vol(M)
180 -80 160
1,150 -150 0
514 -339 514
25 -25 25
500 -489 505
5 42 15
0 10 10
42 -15 95
0 46 95
525 -400 600
0 132 32
0 75 75
0 12 12
4 36 5
0 207 138
0 71 189
1,000 0 0
0 295 100
0 32 20
209 -26 135
Source: Bloomberg and BLX Group LLC
Dealer to Client Volume(M)
Net
Oct-13 Dec-13 Feb-14 Apr-14 Jun-14
Source:Bloomberg
Oct-13 Dec-13 Feb-14 Apr-14 Jun-14
Source:Bloomberg
PACKET PAGE: 66
AGENDA ITEM 3A.6
August 5, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Tim Hults, City Manager
SUBJECT: RESOLUTION No. 3528 - AMENDING SECTION 5.1 OF THE CITY
COUNCIL HANDBOOK
RECOMMENDATION:
Staff recommends that the city council, by motion, approve and adopt Resolution No. 3528,
which will amend section 5.1 of the City Council handbook.
DISCUSSION
Section 5.1 of the City Council Handbook refers to “Addressing the Council”. In accordance with
the Brown Act, any member of the public may address the City Council. Currently, a time limit of
three (3) minutes is allotted to any person wishing to address the City Council. The revision to
section 5.1 of the handbook specifically addresses those persons that wish to donate their time to
another individual, so that they may have more time to speak. Section 5.1 now reads “No person
speaking shall yield his or her time to others without the consent of the Chair”.
This will not preclude any person wishing to have more time to speak, from doing so. It does
however, give a direct process for how a member of the public must get approval from the
presiding Chair of the meeting, prior to being given additional time to speak on an item.
ALTERNATIVES
Approve the Resolution
Do not approve the Resolution
Provide staff with further direction
FISCAL IMPACT
None
ATTACHMENTS
· Resolution 3528
· Revised City Council Handbook
PACKET PAGE: 67
AGENDA ITEM 3A.7
24438.B0000\9134661.1
STATE OF CALIFORNIA ) RESOLUTION NO. 3528
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN JACINTO, CALIFORNIA, AMENDING SECTION
5.1 OF THE CITY COUNCIL HANDBOOK
WHEREAS, the City Council (“City Council”) of the City of San Jacinto
(“City”) is authorized pursuant to California Government Code section 54954.3 to adopt
reasonable regulations to ensure that the intent of the Brown Act to provide an
opportunity for members of the public to directly address the City Council is carried out;
and
WHEREAS, one such reasonable regulation intended and authorized
pursuant to Government Code section 54954.3(b) is limiting the total amount of time
allocated for public testimony on particular issues and for each individual speaker; and
WHEREAS, the City Council finds that reasonable regulations include
limitations on public comment on items of interest to the public, before or during the City
Council’s consideration of the items; and
WHEREAS, the City Council concludes that one reasonable regulation is
to restrict any person speaking during public comment from yielding his or her time to
others without consent; and
WHEREAS, the City Council determines that another such reasonable
regulation is to permit the City Council to terminate public comments on an item if
remarks become repetitious; and
WHEREAS, the City Council desires to establish these policies by
amending Section 5.1: Manner of Addressing the Council of the San Jacinto City
Council Orientation Handbook accordingly.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN
JACINTO RESOLVES AS FOLLOWS:
SECTION 1. The Recitals set forth above are true and correct and are hereby
incorporated and adopted as findings by the City Council as though fully
set forth herein.
SECTION 2. Section 5.1: Manner of Addressing the Council of the San Jacinto City
Council Orientation Handbook is hereby amended to read in its entirety as
follows:
PACKET PAGE: 69
AGENDA ITEM 3A.7
24438.B0000\9134661.1
“5.1 Manner of Addressing the Council
Any member of the public desiring to address the Council shall proceed to
the podium and wait to be recognized by the Presiding Officer. After being
recognized, he shall state his name and address for the record.
All remarks and questions shall be addressed to the Chair and not to any
individual Council Member, staff member, or other person. During a public
hearing all remarks shall be limited to the subject under consideration. No
person shall enter into any discussion without being recognized by the
Presiding Officer. No person speaking shall yield his or her time to others
without the consent of the Chair. The Council may terminate public
comments if remarks become repetitious.
Any member of the Council who has been recognized by the Presiding
Officer of the Council for such purpose may address or respond to a
member of the public who has addressed the Council pursuant thereto.
Such address or response shall be exercised only once for each member
of the public, shall not exceed three (3) minutes in length and shall be
deemed to express the individual position or opinion of the Council
Member offering the same and shall not be construed to bind the Council
or the City in any manner. Unless otherwise directed by the Council, the
restrictions imposed by Subsection (a) shall apply only to those portions of
the Council agenda during which members of the public are permitted to
make public comments to the Council.”
SECTION 3. The City Council shall have authority and discretion to enforce the newly
adopted policies as reflected in Section 5.1: Manner of Addressing the
Council, as amended above. In all respects, the City Council shall enforce
the regulations reasonably and in keeping with the intent and purpose of
the Brown Act to provide an opportunity for members of the public to
directly address the City Council.
SECTION 4. The City Council hereby finds that this Resolution is exempt from further
environmental review pursuant to the California Environmental Quality Act
(Public Resources Code §§ 21000 et seq.) (“CEQA”) because, pursuant to
section 15378(b)(2) and (5) of the California Code of Regulations, this
Resolution does not constitute a “project” because it constitutes general
policy and procedure making and organizational or administrative activities
of government that will not will not result in direct or indirect potentially
significant physical changes in or impact to the environment. Therefore,
City staff is hereby directed to file a Notice of Exemption with the County
Clerk within three (3) days following the adoption of this Resolution.
SECTION 5. If any provision or clause of this Resolution or its application to any
particular set of facts or circumstances is held invalid, such invalidity shall
not affect other provisions of this Resolution that can be given effect
PACKET PAGE: 70
AGENDA ITEM 3A.7
24438.B0000\9134661.1
without the invalid provision or application, and to this end, the provisions
of this Resolution are declared to be severable.
SECTION 6. This Resolution shall become effective on the date on which it is adopted.
PASSED, APPROVED AND ADOPTED, this ____ day of
__________________, 2014.
Ayes:
Nays:
Absent:
Abstain:
City of San Jacinto
__________________________
Alonso Ledezma, Mayor
ATTEST:
__________________________
Richard Miller, City Clerk
APPROVED AS TO FORM:
Best, Best, and Krieger, LLP
____________________________
Jeffrey S. Ballinger, City Attorney
PACKET PAGE: 71
AGENDA ITEM 3A.7
24438.B0000\9134661.1
CERTIFICATE
I, Richard Miller, City Clerk of the City Council of the City of San Jacinto, do hereby
certify that the foregoing is a true copy of Resolution No. _____ was introduced,
approved and adopted at a regular meeting of the City Council of the City of San Jacinto
held on the ____ day of _______________, 2014.
WITNESS MY HAND AND OFFICIAL SEAL this ____ day of _______________, 2014.
__________________________
Richard Miller, City Clerk
City of San Jacinto
PACKET PAGE: 72
AGENDA ITEM 3A.7
24438.00000\8508905.6
CITY OF SAN JACINTO
City Council
Orientation
Handbook
595 S. San Jacinto Avenue, San Jacinto, CA 92583
PACKET PAGE: 73
AGENDA ITEM 3A.7
24438.00000\8508905.6
PREFACE
Council Members have the opportunity to contribute to the bright and successful future of
the City of San Jacinto. It is a privilege and a sacred trust. The hope is that the City Council
Orientation Handbook will give each Council Member a glimpse of the many activities and
services provided by the City of San Jacinto to its citizens by the Elected Officials.
The objective of this City of San Jacinto City Council Orientation Handbook is to serve as a
reference for Council Members regarding duties and responsibilities of elected and appointed
officials of the City of San Jacinto.
Specific questions on the election process should b e directed to the City Clerk.
Questions on ethics and conflicts of interest should be discussed with the City Attorney. Any
other questions about the City should be directed to the City Manager.
All references to gender include the masculine, feminine and neuter.
PACKET PAGE: 74
AGENDA ITEM 3A.7
24438.00000\8508905.6
HISTORY OF SAN JACINTO
San Jacinto is a dynamic community that maintains rich heritage, as well as looking to the
future. San Jacinto incorporates 26 square miles with a diverse population of approximately
44,600 people.
The settlement of San Jacinto dates back to the Mexican era. The town was once a part of the
San Jacinto Rancho, a Spanish land grant given to Don Jose Antonio Estudillo in 1842 by the
Mexican government.
For Many Years, the Estudillo family, their ranch hands and the Indians, were the only
occupants in the area. They raised cattle, horses and sheep in a pastoral setting. As other
settlers arrived, Estudillo decided to found a town and began selling off parcels of land. The
town was incorporated in 1870.
In the early 1900’s, local hot springs and a mild climate attracted visitors to San Jacinto from
Los Angeles and San Diego. Though tourism was important, the community’s economic
strength was rooted in agricultural crops of grains, apricots, peaches, walnuts and citrus.
A bulk transportation’s system was needed and early leaders persuaded the Southern California
Railway Company to lay a track by 1888. The same forward looking vision that brought the
railroad to the Valley in the 1800’s remains the motivating force behind current growth and
pride in the City.
San Jacinto residents have access to cultural, business and recreational facilities that include the
San Jacinto Municipal Museum, Mt. San Jacinto College and other schools, the Ramona Pageant
(the state of California’s official state outdoor play), churches, a library, golf courses, and park
facilities. Within a short drive there is access to both the mountains and the beaches.
Over the years, San Jacinto leaders developed the City into a “full service” municipality,
including police, fire, water, and sewer services. The City has a Council — Manager form of
government with five Council Members elected to serve staggered four-year terms.
PACKET PAGE: 75
AGENDA ITEM 3A.7
24438.00000\8508905.6
COUNCIL—MANAGER FORM OF GOVERNMENT
The City of San Jacinto operates according to the C ouncil-Manager form of
government, which vest authority in an elected City Council, which, in turn, hires an appo inted
executive. The City Council is composed of five (5) members: elected at large, on a non-
partisan basis, serving overlapping four-year terms. The Mayor is elected by the Council
Members annually. The Mayor is the presiding officer at City Council meetings and acts as the
official head of the City for legislative and ceremonial purposes. The City Manager is
appointed by the City Council and serves at the pleas ure of the City Council.
The City Council is the City’s legislative and policy-making body. Acting as a whole, the City
Council is responsible for passing ordinances and o rders necessary for governing the
City, as well as setting the direction of City policy. The City Manager is responsible for the
general policies set by the City Council in addition to the day-to-day operation of all City
functions. The City Manager, with the help of the staff, provides the City Council with the
information needed to fulfill its policy-making role.
The Council-Manager form of government separates legislative and executive responsibilities in
a manner similar to state and federal governments. This system provid es “checks and
balances” of both policy and administrative branche s of government by limiting the power
of each. As the issues involved in municipal management have grown more complex,
professional managers provide the cohesion necessary in the day-to-day operations.
PACKET PAGE: 76
AGENDA ITEM 3A.7
24438.00000\8508905.6
PACKET PAGE: 77
AGENDA ITEM 3A.7
24438.00000\8508905.6 -1-
THE CITY COUNCIL
City Council
The San Jacinto City Council is composed of five (5) members elected on a non-partisan basis,
serving four-year overlapping terms. Municipal elections are held every even numbered year,
with three Council Members selected at one election and two the next. At the first regular
meeting following the canvass of election results of the general municipal election, the newly
elected and qualified Council Members assume the duties of their office. The City Council
selects the Mayor and Mayor Pro Tempore (sometimes referred to as “Mayor Pro Tem”) from its
membership. The Mayor serves as the presiding officer and the Mayor Pro Tem serves in the
same capacity in the absence of the Mayor. The Mayor is a voting member of the City Council.
The City Council is the legislative and policy making body of the City. It is the Council’s
responsibility to enact ordinances, resolutions, and orders necessary for governing the affairs of
the City, to approve or amend the annual budget, to authorize certain contracts on behalf of the
City, as the final appeal body on rulings of boards and commissions, appoints the City Manager,
City Attorney and all members of the various boards and commissions, and to submit
propositions to the electors at any election.
Council Meetings
The regular meeting of the City Council is a vital part of the democratic process in the conduct of
the City’s affairs. It is at Council meetings that laws, policies, and basic decisions are made for
the government of San Jacinto. All meetings of the City Council are open to the public except
those exempted by law. Citizens are encouraged to attend to learn more about their City
government at these meetings and workshops.
Council meetings are held at the San Jacinto Community Center 625 South Pico Avenue, San
Jacinto, CA 92583, at 6:30 p.m. on the first and third Thursdays of each month. Meetings of the
City’s affiliate entities (such as the Successor Agency, Housing Authority, etc.) are held on an as
needed basis at the same time and date of the City Council regular meetings. Meeting calendars
are available from the City Clerk. Work Study Sessions are scheduled on an as needed basis for
topics requiring special review.
The Council Agenda is the official order of business at Council meetings. Items for the agenda
are prepared and submitted to the City Manager by the department heads that investigate and
approve each item. Copies of the agenda are available from the City Clerk and at the entrance to
the Council chambers at each meeting.
Any person wishing to present a matter to the City Council is urged to do so in writing prior to
6:30 p.m. preceding the meeting. Public statements are limited to topics within the purview of
the City Council. Requests to speak may be submitted to any Council Member, the City
Manager, or City Clerk. Each person is requested to limit remarks to three (3) minutes, giving
everyone an opportunity to speak without undue delay. A single subject is limited to 15 minutes.
In exceptional circumstances, the Mayor may establish alternative rules for public statements.
PACKET PAGE: 78
AGENDA ITEM 3A.7
24438.00000\8508905.6 -2-
Agenda Procedure
The City Council meeting is the public forum where the City Council conducts its business of
governing the City in public session, as required by law and where the City Council received
input from the public staff on items on the Council Agenda. The City Council then makes
decisions on those items and staff is directed to implement those decisions.
The Council Agenda is the outline for business the City Council will be addressing. No action or
discussion may be undertaken on any item not on the posted agenda, except that Council
Members or staff may briefly respond to statements made or questions posed by member of the
public during the public comment period. However, upon a two-thirds vote of the members of
the Council present at the meeting (or if less than two-thirds are present a unanimous vote of
those present) that there is a need to take immediate action and that the need for action came to
the attention of the City subsequent to the agenda being posted, matters can be added to the
agenda for discussion and action.
The general public statement section of the Council Agenda is near the beginning of the agenda
to comply with the Brown Act requirement that provides an opportunity for members of the
public to address any item of interest before Council consideration of the item. Scheduling this
general public comment section near the beginning of the agenda is also important so citizens
will not have to sit through long, arduous meetings before having an opportunity to speak on an
issue of importance to them.
The Mayor is the legislative officer who is responsible for seeing that legislative decorum and
procedures are followed during the order of business. The City Attorney is responsible for
ensuring that the City Council follows applicable law as its decisions are made.
Copies of the Council Agenda are posted at City Hall (and as a courtesy at the outside of the
Community Center building, the Library, and the Community Center) at least 72 hours before a
regular meeting and 24 hours before a special meeting. Copies are also available at the City Hall
and on the City’s website prior to the meeting.
The City Clerk prepares the Council Agenda with input from the departments and concurrence of
the City Manager.
Adoption of an Ordinance
An ordinance is a law enacted by the City Council under powers delegated to it by the state,
prescribing a general and lasting rule for persons or things within the corporate city boundaries.
It is the most authoritative act of which the council is ordinarily capable and is usually reserved
for cases involving long-term policy.
An ordinance has the force of law and usually includes what remedies will be made if the law is
not followed.
Ordinance making is a principal duty of the City Council. Ordinances must be in harmony with
the state constitution and state statutes. They must be in line with what the courts of the state
PACKET PAGE: 79
AGENDA ITEM 3A.7
24438.00000\8508905.6 -3-
have held to be in the common law (accepted practice). Also, they must not be contrary to the
federal Constitution, Acts of Congress, or other federal rules.
Creation of an ordinance requires legal skill in draftsmanship, as well as technical knowledge of
the subject. This task is ordinarily performed by the City Attorney, sometimes with assistance
from the administrative or technical personnel in City departments, and always in conformance
with policies outlined by the Council. When the Council is considering an ordinance, the City
Attorney should be immediately available for advise on its legal implications.
All ordinances must be passed in accordance with procedures specified in state law and the San
Jacinto Municipal Code. These procedural requirements determine:
· the method of presentation of the ordinance;
· the number of readings at successive meetings;
· if a public hearing is required or not;
· the majority of the Council necessary for passage;
· the officers such as the Mayor and City Clerk, whose signatures must be affixed;
· the authority of the Council to give emergency ordinances immediate effect; and
· the provision for recording the ordinance in the book of minutes.
· Beyond these fundamental requirements, the Council determines procedures and
regulates the conduct of its members and of debate.
Resolutions
Not all legislative action taken by the Council is in the form of ordinances. Resolutions, which
do not establish permanent local law, are commonly used for creating special improvement
districts, ordering sidewalk construction, authorizing budget transfers, and performing a number
of other routine actions. The procedure governing resolutions is, in most cases, less formal than
that provided for ordinances. Sometimes public positions are expressed in the form of a motion
and more strongly in the form of a resolution. A resolution reflects the intent of the Council.
City Council Subcommittees
Members of the City Council may serve on multiple City Council subcommittees. Currently, the
following subcommittees exist: City Beautification, Community Outreach, Drainage, Economic
Development, Facility Naming Committee, Franchises, Historic Preservation, Homeless, Land
Use, Public Safety, Selection, Special Events, Transportation, Tribal Issues, Water, Strategic
Planning & Goal Setting, Finance, Cultural Advisory Commission. These subcommittees may
change or become inactive from time to time as needs arise.
PACKET PAGE: 80
AGENDA ITEM 3A.7
24438.00000\8508905.6 -4-
From time to time, the Mayor may create “ad hoc” subcommittees made up of Council members,
which deal with specific issues and time frames. These subcommittees work on items
specifically referred to them, and are generally of a limited time duration.
Regional Representatives
In addition to subcommittees of the City Council, Councilmembers may be called upon to serve
as representatives on regional boards/bodies. These include: Riverside County Transportation
Commission (RCTC), Western Riverside Council of Government (WRCOG), Western Riverside
County Regional Conservation Authority (RCA), and Southern California Association of
Governments (SCAG).
City Commissions/Committees/Boards
The City Council is authorized to create and appoint members to various City
Commissions/Committees and Boards. Appointments are made by Council to the following:
Planning Commission, Community Preservation Committee, Estudillo Mansion Committee,
Accessibility Appeals Board, and Cultural Advisory Commission.
City Clerk
The City Clerk plans, organizes and directs all activities of the City Clerk’s office, which include
serving as Clerk to the City Council and Secretary to the Successor Agency to the San Jacinto
Redevelopment Agency, maintaining official City records, conducting City elections, and
providing information and service to the public as well as public access of records for review by
community residents. The City Clerk serves as the official recipient of correspondence to the
City Council and the City in general. The City Clerk’s office is located at 595 S. San Jacinto
Avenue, and the phone number is (951) 487-7339.
Voter registration is available at the City Clerk’s office and the Registrar of Voters office.
Rules of Procedure
The purpose and intent of the City Council in adopting and, from time to time, amending these
rules is to provide directory guidelines relating to the conduct of public business by or on behalf
of the City Council. In the event of any noncompliance with or violation of any provision herein,
such will not be deemed to affect the validity of any action taken unless otherwise specifically
provided by law.
1. MEETINGS
1.1 Regular Meetings
The City Council of the City of San Jacinto shall hold regular meetings in the San Jacinto
Community Center 625 South Pico Avenue, San Jacinto, CA 92583, on the first and third
Thursday of each month, beginning at 6:30 p.m. If the day for the regular meeting of the
Council falls on a legal holiday, no meeting shall be held on such holiday, but a regular meeting
PACKET PAGE: 81
AGENDA ITEM 3A.7
24438.00000\8508905.6 -5-
shall be held at the same hour on the next succeeding business day thereafter that is not a
holiday.
1.2 Adjourned Meetings
Any meeting may be adjourned to time, place and date certain, but not beyond the next regular
meeting. Once adjourned the meeting may not be reconvened.
1.3 Special Meetings
Special Meetings may be called by the Mayor or majority of Council Members on 24-hour
notice, as set forth in Section 54956 of Government Code of State of California. Only matters
contained in the notice may be considered and no ordinances (other than urgency ordinances)
may be adopted.
1.4 Study Sessions
Members of the City Council may meet in a regular Study Session in the San Jacinto Community
Center 625 South Pico Avenue, San Jacinto, CA 92583 on the fourth Thursday of each month at
6:00 p.m. and such other times as deemed necessary (See Section 10.1).
1.5 Notice of Meetings
Mailed or published notice of regular meetings or regular study sessions is not required. Mailed
or personally delivered notice is required of special meetings, unless otherwise waived. Posted
notice is required of meetings adjourned by the City Clerk. Posted notice is required of all other
adjourned meetings and continued public hearings (Section 54955 of the Government Code).
1.6 Quorum
Unless otherwise provided for by Resolution, a majority of the Council shall be sufficient to do
business, and most motions may be pass 2-1 if only three Council Members attend. The
following matters, however, require three affirmative votes:
a. Adoption of ordinances;
b. Resolutions, and
c. Orders for the payment of money.
1.7 Meetings To Be Public
Study Sessions and all regular, adjourned or special meetings of the City Council shall be open
to the public, provided, however, the Council may hold closed session from which the public
may be excluded for the consideration of the following subjects:
PACKET PAGE: 82
AGENDA ITEM 3A.7
24438.00000\8508905.6 -6-
1.7.1 License / Permit Determination
To consider granting a license or permit pursuant to Government Code Section 54956.7, action
of the City Council shall be given in open session during the meeting at which the closed session
occurred or the next public meeting. All matters relating to the closed session shall be
confidential except by consent of the applicant or in an action by the applicant to appeal the
denial.
1.7.2 Real Property Transactions
To consider negotiations prior to the purchase, sale and exchange or lease of real property and to
meet with a negotiator. Prior to such sessions the agenda must identify the real property in
question and with whom the negotiator may be negotiating, pursuant to Government Code
Section 54954.5 and 5456.8
1.7.3 Litigation Matters
To confer with legal counsel regarding pending litigation pursuant to Government Code Section
54956.9 when discussion in open session would prejudice the City’s position in the litigation.
Litigation is considered pending when:
a. a formal action has been initiated;
b. there is a significant exposure to litigation; or
c. the City is deciding whether to initiate litigation. For closed
sessions held to consider litigation that has been formally initiated,
the City must publicly identify or state on the agenda the name of
the case, unless to do so would jeopardize service process or
existing settlement negotiations. For closed session held to
consider a significant exposure to litigation or whether to initiate
litigation, the agenda must specify the number of potential cases.
1.7.4 Public Service / Employment / Labor Negotiations
Pursuant to Government Code Section 54954.5 and 54957 to consider matters posing a threat to
public services or facilities, or the appointment, employment, evaluation of performance or
dismissal of a public employee or to hear complaints or charges brought against such person or
employee by another person or employee unless such employee request a public session. The
Council may exclude from any scheduled session during the examination of a witness any or all
other witnesses in the matter being investigated, and to instruct representatives concerning
discussions with employee organizations and unrepresented employees regarding salaries and
fringe benefits.
1.7.5 Multi-Jurisdictional Drug Law Enforcement Agency
Council may hold closed sessions pursuant to Government Code Section 54957.8 if applicable
and necessary.
PACKET PAGE: 83
AGENDA ITEM 3A.7
24438.00000\8508905.6 -7-
1.7.6 Closed Session Minutes
Pursuant to Section 54957.2 of the California Government Code, the City Clerk may be required
to attend a closed session of the City Council and keep and enter in a minute book a record of
topics discussed and decisions made at each meeting. The confidentiality of such minutes shall
be maintained pursuant to said section of the Government Code Section 54957.2.
2. ORDER OF BUSINESS
2.1 Agenda
The order of business of each meeting shall be as contained in the agenda prepared by the City
Clerk. The agenda shall be a listing by topics of the subjects, which may be taken up for
consideration in the following order:
Organization Call to Order
Invocation
Pledge of Allegiance
Special Presentations
Mayor and Council Member Reports
Public Comments
Consent Calendar
Public Hearings
Staff Reports
Closed Sessions
Adjournment
Except with majority consent of the Council, items may not be taken out of order. The City
Attorney will advise if and when an item may be added to the agenda at a meeting when it has
not appeared on the posted agenda.
Items requested by the public to be considered for City Council action shall be submitted to the
City Manager no later than two weeks prior to the meeting for consideration. Council agenda
requests and Staff Reports for Council action shall be submitted to the City Clerk no later than
noon on the Tuesday in the week preceding the Council meeting. The City Manager may adjust
the ‘noon Tuesday’ deadline depending on circumstances. All reports shall be submitted on the
proper form with complete information as to the subject matter, recommendations, fiscal impact,
and contain the necessary attachments, exhibits, and approving signatures.
2.2 Delivery of Agenda
Barring insurmountable difficulties, the agenda shall ordinarily be delivered to Council Members
each Friday preceding the Thursday meeting to which it pertains. The agenda shall also be
available to the general public at the time it is delivered to the City Council.
PACKET PAGE: 84
AGENDA ITEM 3A.7
24438.00000\8508905.6 -8-
2.3 Call to Order
Before proceeding with the business of the Council, the City Clerk shall record the names of
those Council Members present and they shall be entered in the minutes.
2.4 Public Comments
Any person may address the Council on any subject pertaining to City business not listed on the
agenda during the Public Comments portion of the meeting. A limitation of three (3) minutes
shall be set for each person desiring to address the Council during the Public Comments
designation on the agenda (see 5.2). Public Comments on items listed on the agenda will be
allowed on those items as they come up for consideration by the Council with a three (3) minute
limitation set for each speaker.
2.5 Consent Calendar
Items of a non-controversial and routine nature shall be placed on the consent calendar. All items
may be approved by one blanket motion upon unanimous consent. Any Council Member may
request that any items be withdrawn from the consent calendar for separate consideration.
However, any Council Member may abstain from voting on any consent calendar item without
requesting its removal from the consent calendar, and the City Clerk shall record such
abstentions in the minutes.
2.5.1 Approval of Minutes
Unless requested by a majority of the City Council, minutes of the previous meeting may be
approved without public reading if the City Clerk has previously furnished each Council
Member with a copy thereof.
2.5.2 Public Hearings Advertised / Unadvertised
Generally, Public Hearings, other than those of quasi-judicial nature shall be conducted in the
following order:
Staff Review
Questions of Staff by Council
Hearing opened by Mayor
Questions by Council
Proponent’s testimony
Opponent’s testimony
Proponent’s rebuttal
Hearing closed by Mayor to public testimony
Discussion by Council
Council action
Questions or comments from the public shall be limited to the subject under consideration.
Depending upon the extent of the agenda, and the number of persons desiring to speak on an
issue, the Mayor may, at the beginning of hearing, limit testimony to three (3) minutes per
PACKET PAGE: 85
AGENDA ITEM 3A.7
24438.00000\8508905.6 -9-
individual. Alternatively, the Mayor may, at the beginning of the hearing, limit the overall
amount of time that all proponents and all opponents to a matter may speak. (i.e., proponents get
a total of 45 minutes, and opponents get a total of 45 minutes) Any person may speak for longer
period of time, upon approval of the City Council, when this is deemed necessary in such cases
as when a person is speaking as a representative of a group or has graphic or slide presentation
requiring more time. Quasi-judicial hearing shall be conducted in accordance with the principles
of due process, and the City Attorney shall advise the City Council in this regard.
In any hearings before the City Council, notice of which is to be published or posted, if the City
Council, or any member thereof, or a proponent or opponent of the matter requests that any or all
participants in the proceedings testify under oath or affirmation, the making of such request shall
be set forth in the notice of hearing. Additionally, the notice of hearing shall state the giving of
testimony under oath or affirmation shall be voluntary as to each person wishing to be heard in
the matter, and that any person who has a question or concern regarding the giving of testimony
under oath or affirmation should consult an attorney of his own choosing and at his own expense.
Each person testifying under oath or affirmation in any such proceedings shall, before testifying,
state on the record that he or she agrees to testify under oath or affirmation in the matter and has
had an opportunity to consult with an attorney of his own choosing in respect thereto. Notices of
hearings shall be in accordance with Government Code Section 54954.6, as well as any other
applicable codes.
3. PRESIDING OFFICER
3.1 Presiding Officer
a. The Mayor shall be the Presiding Officer at all meetings of the
Council. In the absence of the Mayor, the Mayor Pro Tem shall
preside. In the absence of both the Mayor and Mayor Pro Tem, the
Council shall elect a temporary presiding officer to serve until the
arrival of the Mayor or the Mayor Pro Tem or until adjournment,
whichever first occurs.
b. The Council shall in even-numbered years reorganize itself,
selecting the Mayor and Mayor Pro Tem from its members, at the
meeting at which the declaration of the election results for a
general municipal election is made.
In odd numbered years, at the first meeting in December, the
Council shall choose one of its members as Mayor and another of
its members as Mayor Pro Tem.
Notwithstanding the reorganization following the general
municipal election, the Council may meet at any meeting of the
City Council to choose a mayor or Mayor Pro Tem to serve the
remainder of a current item.
PACKET PAGE: 86
AGENDA ITEM 3A.7
24438.00000\8508905.6 -10-
c. The City Clerk shall preside at the portion of Council meeting,
which is concerned with the nomination for the selection of the
Mayor.
d. Nomination for the office of Mayor or Mayor Pro Tem may be
made by any member of the Council and need not be seconded in
order to be effective. Each selection shall be by three (3) or more
affirmative votes. In the event that no person receives three or
more votes in the selection process for one or both offices, the
selection process shall be repeated immediately provided,
however, that the two person receiving the highest number of votes
in the preceding selection process shall be the only nominees for
the office to filled. If, upon repeating the selection process for
Mayor or Mayor Pro Tem, no person has yet received three
affirmative votes for such office, the Council may either repeat the
selection process until the officer has been duly selected or may
continue the selection to the next regular meeting of the Council.
e. Voting in the selection of Mayor and Mayor Pro Tem shall be by
voice vote.
f. The Mayor and Mayor Pro Tem shall serve at the will of the City
Council and until their successors have been duly selected pursuant
to subsection (b), (g) and (h) hereof.
g. The offices of Mayor or Mayor Pro Tem shall be deemed vacant
upon the happening of any of the following:
1. The death of the holder of such office;
2. The loss or resignation from membership on the Council
the holder of such office;
3. The acceptance by the Council of the resignation from such
office by the holder thereof;
4. The majority of Council Members desire to make a change;
5. The recall of the holder of such office.
h. At its first regular meeting after the occurrence of a vacancy
created by one of the foregoing events, the Council shall select a
successor to such office pursuant to the selection procedure
established (b) of this section.
PACKET PAGE: 87
AGENDA ITEM 3A.7
24438.00000\8508905.6 -11-
3.2 Participation of Presiding Officer
The Presiding Officer may move, second, and debate from the Chair, subject only to such
limitations of debate as are imposed on all Council Members and he shall not be deprived of any
of the rights and privileges of a Council Member by reason of his acting as presiding Officer.
However the Presiding Officer is primarily responsible for the conduct of the meeting. If he
desires to personally engage in extended debate on questions before the Council, he should
consider turning the Chair over to another member.
3.3 Question or Motion to be Stated
The Presiding Officer shall verbally restate or request the City Clerk to restate each question or
motion immediately prior to call for the vote. Following the vote, the Presiding Officer shall
verbally announce whether the question carried or was defeated. The Presiding Officer may also
publicly state the effect of the vote for the benefit of the audience before proceeding to the next
item of business. The Mayor or City Clerk shall publicly report any action taken and the vote or
abstention on that action of each member present for the action.Such report may be made by roll
call, identification of the members voting yes/no/abstaining, reference to the electronic voting
board, or any other manner that allows verification of the vote of each Councilmember. This
information should also be noted in the minutes.
3.4 Signing of Documents
The Mayor, or Mayor Pro Tem in the absence of Mayor, shall sign ordinances, resolution and
documents necessary to the conduct of City business adopted by the City Council. The City
Clerk or Deputy City Clerk shall attest to the signature of the Mayor or Mayor Pro Tem.
3.5 Maintenance of Order
The Mayor or Presiding Officer is responsible for the maintenance of order and decorum at all
times. No person is allowed to speak who has not first been recognized b the Chair. All
questions and remarks shall be addressed to the Chair.
4. RULES, DECORUM AND ORDER
4.1 Points of Order
The Presiding Officer shall determine all Points of Order subject to the right of any Council
Member to appeal to the Council. If any appeal is taken, the question shall be, “Shall the decision
of the Presiding Officer be sustained?” in which event a majority vote shall govern and
conclusively determine such question of order.
4.1.1 Decorum and Order — Council Members
a. Any Council Member desiring to speak shall address the Chair
and, upon recognition b the Presiding Officer, shall confine
himself to the question under debate
PACKET PAGE: 88
AGENDA ITEM 3A.7
24438.00000\8508905.6 -12-
b. A Council Member desiring to question the staff shall address his
question to the City Manager or City Attorney, in appropriate
cases, who shall be entitled either to answer the inquiry himself or
to designate some member of his staff for that purpose.
c. A Council Member, once recognized, shall not be interrupted
while speaking unless called to order by the Presiding Officer;
unless another Council Member raises a Point of Order, or unless
the speaker chooses to yield to questions from another Council
Member.
d. Any Council Member called to order while he is speaking shall
cease speaking immediately until the question of order is
determined. If ruled to be in order, he shall be permitted to
proceed. If ruled to be not in order, he shall remain silent or shall
alter his remarks so as to comply with the rules of the Council.
e. Council Members shall accord the utmost courtesy to each other,
to city employees, and to the public appearing before the Council
and shall refrain at all times from rude and derogatory remarks,
reflections as to integrity, abusive comments and statements as to
motives and personalities.
f. Any Council Member may move to require the Presiding Officer to
enforce rules and the affirmative vote of a majority of the Council
shall require him to so act.
4.2 Decorum and Order — Employees
Members of the administrative staff and employees of the City shall observe the same rules of
procedure and decorum applicable to members of the Council. The City Manager shall insure
that all City employees observe such decorum. Any staff members, including the City Manager,
desiring to address the Council or members of the public shall first be recognized by the Chair.
All remarks shall be addressed to the Chair and not to any one individual Council Member or
member of the public.
4.3 Decorum and Order — Public
Members of the public attending Council meetings shall observe the same rules of order and
decorum applicable to the Council.
4.4 Enforcement of Decorum
As set forth in Government Code Section 54957.9, in the event that any meeting is willfully
interrupted by a group or groups of person so as to render the orderly conduct of such meeting,
the members of the Council may order the meeting room cleared and continue in session. Only
matters appearing on the agenda may be considered in such a session. Duly accredited
representative of the press or other news media, except those participating in the disturbance,
PACKET PAGE: 89
AGENDA ITEM 3A.7
24438.00000\8508905.6 -13-
shall be allowed to attend any session held pursuant to this section. Nothing in this section shall
prohibit the Council from establishing a procedure for readmitting an individual or individuals
not responsible for willfully disturbing the orderly conduct of the meeting.
4.5 Personal Privilege
The right of a Council member to address the Council on a question of personal privilege shall
be limited to cases in which his integrity, character, or motives are assailed, questioned or
impugned.
4.6 Conflict of Interest
All Council Members are subject to the conflict of interest provisions of California Law, such as
Government Code section 1090, the Political Reform Act, and provisions of the California
Redevelopment Law relative to conflicts of interest, and any conflict of interest codes adopted by
the City. Any Council member prevented from voting because of a conflict of interest shall
refrain from debate and voting. Such Council member will leave the Council Chambers during
debate and voting on the issue, unless permitted to address the City Council as a member of the
general public and in accordance with applicable law.
4.7 Limitation of Debate
Council Members normally should speak not more than once upon any one subject until every
other Council Member choosing to speak thereon has spoken. Members shall limit their
statement to five (5) minutes each time they have the floor, unless the Council, by majority vote,
approves an extended period.
4.8 Dissents, Protests, and Comments
Any member shall have the right to express dissent from, or protest to, or comment upon, any
action of the Council and the reason entered in the minutes. If such dissent, protest or comment
is desired to be entered in the minutes, this should be made clear by language such as, “I would
like the minutes to show that I am opposed to this action for the following reasons...”
4.9 Rulings of Chair Final Unless Overruled
In presiding over Council meetings, the Mayor, Mayor Pro Tem, or temporary Presiding Officer
shall refer to “Roberts Rules of Order” to decide all questions of interpretation of these rules,
points of order or other questions of procedure requiring rulings. Any such decision or ruling
shall be final unless overridden or suspended by majority vote of the Council Members present
and voting, and shall be binding and legally effective for purposes of the matter under
consideration.
PACKET PAGE: 90
AGENDA ITEM 3A.7
24438.00000\8508905.6 -14-
5. ADDRESSING THE COUNCIL
5.1 Manner of Addressing the Council
Any member of the public desiring to address the Council shall proceed to the podium and wait
to be recognized by the Presiding Officer. After being recognized, he shall state his name and
address for the record.
All remarks and questions shall be addressed to the Chair and not to any individual Council
Member, staff member, or other person. During a public hearing all remarks shall be limited to
the subject under consideration. No person shall enter into any discussion without being
recognized by the Presiding Officer. No person speaking shall yield his or her time to others
without the consent of the Chair. The Council may terminate public comments if remarks
become repetitious.
Any member of the Council who has been recognized by the Presiding Officer of the Council for
such purpose may address or respond to a member of the public who has addressed the Council
pursuant thereto. Such address or response shall be exercised only once for each member of the
public, shall not exceed three (3) minutes in length and shall be deemed to express the individual
position or opinion of the Council Member offering the same and shall not be construed to bind
the Council or the City in any manner. Unless otherwise directed by the Council, the restrictions
imposed by Subsection (a) shall apply only to those portions of the Council agenda during which
members of the public are permitted to make public comments to the Council.
5.2 Time Limitation
Any member of the public desiring to address the Council shall limit his statement to three (3)
minutes, unless further time has granted by the Presiding Officer in the individual case, or in
accordance with Section 2.6.
5.3 Addressing the Council After Motion Is Made
After a motion has been made, or after a public hearing has been closed, no member of the public
shall address the Council without first securing permission by a majority vote of the Council.
5.4 Limitations Regarding Public Comments and Reports
The making of public comments to the Council by any member of the public during the “Public
Comments” portion of the agenda shall be subject to the following limitations:
5.4.1 At any time, before or after the public comments is commenced, the
Presiding Officer may request to direct the communication to the City
Manager or other appropriate staff member during regular business hours,
or in writing for subsequent submittal to Council Members, pursuant to
Section 5.5.
5.4.2 The Presiding Officer may limit the number of speakers heard on non-
agenda topics at a single meeting. Those whose presentations are
PACKET PAGE: 91
AGENDA ITEM 3A.7
24438.00000\8508905.6 -15-
postponed shall be given priority at the next meeting during the “Public
Comments” agenda item.
5.4.3 If it appears that several speakers desire to speak regarding a single topic,
the Presiding Officer may reasonably limit the number speaking as to each
side of an issue. In this regard, preference may be given to speakers who
represent groups of person who have designated a spokesperson.
5.4.4 No section or subsection of this resolution shall be construed as to prohibit
the right of the public to the criticism of the policies, procedures,
programs, or services of the city or the acts or omissions of the City
Council
5.5 Written Correspondence
The City Manager is authorized to receive and open all mail addressed to the Council as a whole
and give it immediate attention to the end that all administrative business referred to in said
communications, and not necessarily requiring Council action, may be disposed of between
Council meetings. A copy of such communication shall be provided to each Council Member
marked “Information Only.”
Any communication relating to a pending matter, or to be brought before the City Council shall
be included in the agenda packet for the meeting at which such item is to be considered.
Letters of appeal from administrative or commission decisions shall be processed under
applicable provisions of City ordinances.
Copies of all other communications sent to the members of the Council will be transmitted to
them.
5.6 Persons Authorized to be within the Diocese
No person except the City Officials shall be permitted within the dais area in front of the Council
table without the invitation or consent of the Presiding Officer.
6. MOTIONS
6.1 Processing of Motions
When a motion is made and seconded, it shall be stated by the presiding Officer before debate.
A motion so stated shall not be withdrawn by the mover without the consent of person seconding
it.
6.2 Motions Out of Order
The Presiding Officer may at any time, by majority consent of the Council, permit a member to
introduce an ordinance, resolution or motion out of the regular agenda order.
PACKET PAGE: 92
AGENDA ITEM 3A.7
24438.00000\8508905.6 -16-
6.3 Division of Question
If the question contains two or more divisional propositions, the Presiding Officer may, and upon
request of a member shall, divide same.
6.4 Precedence of Motions
When a motion is before the Council, no motion shall be entertained except the following, which
shall have precedence in the following order:
a. Adjourn
b. Fix Hours of Adjournment
c. Table
d. Limit or Terminate Discussion
e. Amend
f. Postpone
g. Reopen Public Discussion
6.5 Motion to Adjourn (Not debatable)
A motion to adjourn shall be in order at any time, except as follows:
a. When repeated without intervening business or discussion;
b. When made as an interruption of a member while speaking;
c. When discussion has been ended and vote on a motion is pending;
and
d. While a vote is being taken.
6.6 Motion to Fix Hour of Adjournment
Such a motion shall be to set a definite time at which to adjourn and shall be undebatable and
shall be unamendable except by unanimous vote.
6.7 Motion to Table
A motion to table shall be used to temporarily by-pass the subject. A motion to table shall be
undebatable and shall preclude all amendments or debate of the subject under consideration. If
the motion shall prevail, the matter may be “taken from the table” and any time prior to the end
of the next regular meeting.
6.8 Motion to Limit or Terminate Discussion
Such a motion shall be used to limit or close debate on, or further amendment to, the main
motion and shall be undebatable. If the Motion fails, debate shall be reopened; if the motion
prevails, a vote shall be taken on the main motion.
PACKET PAGE: 93
AGENDA ITEM 3A.7
24438.00000\8508905.6 -17-
6.9 Motion to Amend
A motion to amend shall be debatable only as to the amendment. A motion to amend an
amendment shall be in order, but a motion to amend an amendment to an amendment shall not be
in order. An amendment modifying the intention of a motion shall be in order, but an amendment
relating to a different matter shall not be in order. A substitute motion on the same subject shall
be acceptable, and voted on before a vote on the amendment. Amendments shall be voted first,
then the main motion as amended.
6.10 Motion to Continue
Motions to continue to a definite time shall be amendable and debatable as to propriety of
postponement and time set.
7. VOTING PROCEDURES
7.1 Voting Procedure
In acting upon every motion, the vote shall be taken by mechanical or electronic means, and the
vote on each motion shall be entered in full upon the record. Members shall respond “aye”,
“nay”, or “abstain”, and any Council Member present and not responding “no” or “abstain” or
otherwise registering an objection shall have his vote recorded as “aye.”
7.2 Roll Call Voting
In the event of a roll call vote, the order of voting shall be alphabetical with the Mayor voting
last. The City Clerk shall call the names of all members seated when a roll call vote is ordered or
required.
Every ordinance (other than urgency ordinances) and any resolutions or orders for franchise or
payment of money require three (3) affirmative votes. Urgency ordinance require four (4)
affirmative votes. Any question before the Council shall not require a roll call vote unless
demanded by any member. It shall not be in order for members to explain their vote during the
vote. Any member my change his vote before the next order of business.
7.3 Every Failure to Vote
Council Members should vote unless disqualified for cause.
7.4 Reconsideration
Any Council Member who voted with the majority may move a reconsideration of any action at
the same meeting. After a motion for reconsideration has once been acted upon at the same
meeting, no other motion for a reconsideration thereof shall be made without unanimous consent
of the Council at the same or subsequent meeting.
PACKET PAGE: 94
AGENDA ITEM 3A.7
24438.00000\8508905.6 -18-
7.5 The Votes
Tie votes shall be lost motions. When all Council members are present, a tie vote on whether to
grant an appeal from official action shall be considered a denial of such appeal unless the
Council takes other action to further consider the matter. If a tie vote results at a time when less
than all members of the Council are present the matter shall automatically be continued to the
agenda of the next regular meeting of the Council, unless otherwise ordered by the Council.
7.6 Motion to Rescind
Any Council Member, regardless of how he or she voted on the item originally, may move to
rescind an action taken at a previous meeting in order to strike out an entire motion resolution,
rule, bylaw, section or paragraph that has been adopted except in the following circumstances:
a. When there has been detrimental reliance on the original decision
by a party affected thereby;
b. When something has been done as a result of the original decision,
which it would be impossible to undo;
c. When the item is in the nature of a contract and the other part to
the contract has been informed of the vote and has taken action in
reliance thereon, which cannot be undone.
8. RESOLUTIONS
8.1 Definitions
As a rule of thumb, it can be said that legislative acts of the City Council (usually a rule of public
conduct for long-term application) are taken by ordinance, whereas more routine business and
administrative matters (usually more temporary and transitory in nature) are accomplished by
resolutions. The term “resolution” in its general sense will note any action taken affirmatively
via a vote of the Council, other than one taken by ordinance. As used in San Jacinto, however,
two terms are in general used to denote such (non-ordinance) actions: “resolution” and “motion”
(thereafter recorded by minute entry). Technically, all three are equally as legally effective and
binding; they vary in the formality of respective memorialization. The most formal is referred to
locally as a “resolution.” This, in addition to being reference in the minutes, will be recorded by
a separate document, numbered in sequence and preserved in a separate set of books. Such
“resolutions” are used in San Jacinto for various reasons, such as when specifically required by
law, when needed as a separate indentiary document to be transmitted to another governmental
agency, or where the frequency of future reference back to its content warrants a separate
document (with the additional “whereas” explanatory material it often recites) to facilitate such
future reference and research.
A “motion” (assuming it as one which passed) is a Council action which is .recorded simply b an
item entry in the minutes of the meeting at which it was accomplished, and no separate document
is made to memorialize it.
PACKET PAGE: 95
AGENDA ITEM 3A.7
24438.00000\8508905.6 -19-
8.2 Resolutions Prepared in Advance
Where a resolution has been prepared in advance, the procedure shall be: motion, second,
discussion, vote pursuant to methods prescribed in Section 7.1 and result declared. It shall not be
necessary to read a resolution in full or by title except to identify it.Any member may require that
the resolution be read in full.
8.3 Resolutions Not Prepared in Advance
Where a resolution has not been prepared in advance, the procedure shall be to instruct the City
Manager or the City Attorney to prepare a resolution for presentation at the next Council
meeting.
8.4 Urgency Resolutions
In matters of urgency, a resolution may be presented verbally, in motion form together with
instructions for written preparation for later execution.
After the resolution has been verbally stated, the voting procedure in 8.2 above shall be followed.
Urgency resolutions shall be avoided except when absolutely necessary; and shall be avoided
entirely when resolutions are required by law, improvement acts, zoning matters, or force
account work on public projects. Where the resolution has been drafted in written form, either
before or during the meeting, this paragraph shall not be deemed applicable.
9. ORDINANCES
9.1 Introduction and Adoption of Ordinances
Ordinances shall not be passed within (5) days of their introduction, or at other than a regular
meeting or at any adjourned regular meeting. However, an urgency ordinance may be passed
immediately upon introduction and either at a regular or special meeting. Except when, after
reading the title, further reading is waived by regular motion adopted by majority vote, all
ordinances shall be read in full, either at the time of introduction or passage. When ordinances,
other than urgency ordinances, are altered after introduction, they shall be reintroduced only at a
regular or at an adjourned meeting held at least five (5) days after alteration. Corrections of
typographical or clerical errors are not alternations within the meaning of this section.
9.2 Effective Date
All ordinances, except as provided in Section 36937 of the Government Code, shall take effect
thirty (30) days after adoption, but may be made operative at such later date as may be
designated in the ordinance.
9.3 Publishing
It shall be the duty of the City Clerk to publish all ordinances in one of the following three (3)
ways:
PACKET PAGE: 96
AGENDA ITEM 3A.7
24438.00000\8508905.6 -20-
· Within 15 days after its passage, the City Clerk shall cause each ordinance to be
published at least once, with the names of those City Council Members voting for and
against the ordinance, in a newspaper of general circulation published and circulated in
the City, or if there is none, posted in at least three public places in the City or published
in a newspaper of general circulation printed and published in Riverside County and
circulated in the City; or
· The City Clerk may publish a summary of a proposed ordinance. A summary shall be
published and certified copy of the full text of the proposed ordinance shall be posted in
the office of the City Clerk at least five (5) days prior to the City Council Meeting at
which the proposed ordinance is to be adopted. Within 15 days after adoption of the
ordinance, the City Clerk shall publish a summary of the ordinance with the names of
those City Council members voting for and against the ordinance and the City Clerk shall
post in the City Clerk’s office a certified copy of the full text of such adopted ordinance
along with the names of the City Council Members voting for and against the ordinance;
or
· If the City Clerk determines that it is not feasible to prepare a fair and adequate summary
of the proposed or adopted ordinance, and if the City Council so orders, a display
advertisement of at least one-quarter of a page in a newspaper of general circulation in
the City shall be published at least five (5) days prior to the City Council meeting at
which the proposed ordinance is to be adopted. Within 15 days after adoption of the
ordinance a display advertisement of at least one- quarter of a page shall be published.
The advertisement shall indicate the general nature of; and provide information about the
proposed or adopted ordinance, including information sufficient to enable the public to
obtain copies of the complete text of such ordinance, and the names of those City Council
Members voting for and against the ordinance.
9.4 Urgency Ordinances
All urgency ordinances must receive four (4) affirmative votes to be adopted and to become
effective immediately. If such an ordinance fails to receive 4/5ths majority, it may thereafter be
considered and passed in the same manner as regular ordinances.
10. STUDY SESSIONS
Council Members able to attend scheduled study sessions may meet in the San Jacinto
Community Center 625 South Pico Avenue, San Jacinto, CA 92583, on the fourth Thursday of
each month (and such other times as deemed necessary) at 6:00 p.m. for the purpose of
reviewing the agenda for a City Council meeting, discussion of special subjects of immediate
concern; and meeting and conferring with City Commissions, Committees, Boards; Civic
Organizations; and City Officials relative to pending City business.
The time for sessions as specified may be altered by the City Council or by the Mayor, on
individual occasions when appropriate, to the convenience of the Council Members, provided
that when this occurs, written notice of the change shall be provided in accordance with the
standard noticing requirements.
PACKET PAGE: 97
AGENDA ITEM 3A.7
24438.00000\8508905.6 -21-
10.1 Open to the Public
Study sessions shall at all times be open to the public and the news media, except closed sessions
held at such time pursuant to Government Code.
10.2 Purpose
Study sessions constitute a meeting of the City Council and are subject to applicable rules and
procedures. At such study sessions, no formal action shall be taken, no motion shall be offered,
nor debates entered into; the sole purpose of said meetings being to provide background
information to members of the City Council and to allow Council Members to ask questions.
This shall not, however, be deemed to apply with respect to closed sessions.
10.3 Agenda
The agenda for each study session shall be prepared and posted in accordance with the same
rules applicable to regular City Council meetings.
11. CITY COUNCIL REPRESENTATIONS / SUBCOMMITTEES / TASK FORCES
The City Council recognizes that the use of standing and temporary (ad hoc) subcommittees is an
appropriate and efficient way to focus and accomplish the work of the City. Subcommittees are
used at every level of government, from the United States Congress, to the California
Legislature, to locally elected bodies.
11.1 Formation
The City Council and Mayor may designate subcommittees as necessary, pursuant to this Policy.
No more than two (2) members of the City Council shall be appointed to a single subcommittee,
and any vacancy shall be filled in the same manner as the original appointment.
The purpose of Council subcommittees is to act as sounding boards, fact finding for, and make
recommendations to, the City Council on various matters concerning pertinent issues that are
brought to the attention of the City Council or City Staff. Subcommittees shall have no authority
to establish policy or direct City Staff concerning City business and shall be advisory only.
It shall be the policy of each subcommittee to review the issues that are brought before the
subcommittee, and provide feedback to staff for consideration by the full Council or to make
recommendations directly to the full City Council.
The subcommittees shall select a chair and vice-chair and such other officers as they desire. The
subcommittees shall meet as necessary, at the call of a subcommittee member or the Council, or
no less than quarterly depending upon the type of subcommittee. City Staff shall prepare an
agenda listing the topics to be covered at each meeting. The City Manager shall designate the
staff representatives who shall be present at each meeting to present information and provide
follow up actions.
PACKET PAGE: 98
AGENDA ITEM 3A.7
24438.00000\8508905.6 -22-
11.2 Regional Representatives
The Mayor shall select representatives, with confirmation by the full Council, to other agency
boards (i.e., RCTC, RCA, WRCOG, SCAG, etc.), who shall serve for a term of one (1) year.
The Mayor shall review these appointments annually, upon a vacancy, or as deemed necessary
for continuing necessity. Such representation will receive staff support from other agencies,
including any need to comply with the Brown Act.
11.3 Standing
The City Council shall determine the need for and appoint standing subcommittees as deemed
necessary. Such subcommittees will require staff support and meet the open meeting
requirements of the Brown Act. Such standing subcommittees shall be reviewed annually, upon
any vacancy, or as deemed necessary for continuing necessity.
11.4 Ad Hoc
The Mayor shall appoint ad hoc task forces as deemed necessary to perform limited, temporary
assignments. Unless provided otherwise by the Mayor, such subcommittees need not comply
with the open meeting requirements of the Brown Act. (See Brown Act Compliance, below.)
Such ad hoc subcommittees may require staff support. They shall serve for the period of time
necessary to meet the needs as they were originally intended.
11.5 Brown Act Compliance
California’s Ralph M. Brown Act (Gov. Code § 54950 et seq.) imposes certain open meeting
requirements (posted agenda, opportunity for public speaking, etc.) on nearly every commission,
committee, board, or other body of the City, whether permanent or temporary, decision-making
or advisory, when that commission, committee, board or other body is created by ordinance,
resolution, or formal action of the City Council.
However, advisory subcommittees that are composed solely of the members of the City Council
and that are less than a quorum of the City Council are not subject to these open meeting
requirements. (Gov. Code, § 54952(b).) Therefore, ad hoc subcommittees that have fewer than
three (3) Councilmembers are not subject to the open meeting requirements of the Brown Act.
Unless the Mayor so provides, such ad hoc subcommittees need not comply with the Brown Act.
In contrast, standing subcommittees, irrespective of their composition, that have a continuing
subject matter jurisdiction, or a meeting schedule fixed by ordinance, resolution, or formal action
are subject to the open meeting requirements of the Brown Act. Therefore, standing
subcommittees shall always comply with the Brown Act.
Compliance with the Brown Act includes limiting the involvement of Councilmembers who are
not on subcommittees. Specifically, if three (3) Councilmembers participate in hearing,
discussing, deliberating, or taking action concerning City business, such activities would
constitute a “meeting” of the entire City Council under the Brown Act; not just the
subcommittee. This would require such meeting to be agendized as a full City Council meeting.
PACKET PAGE: 99
AGENDA ITEM 3A.7
24438.00000\8508905.6 -23-
However, the Brown Act would not require a subcommittee’s meeting to be agendized as a full
City Council meeting (even if three (3) or more Councilmembers are present) so long as the
subcommittee meeting is open and noticed as a subcommittee meeting and provided further that
the members of the City Council who are not members of the standing subcommittee attend
“only as observers.” (Gov. Code, § 54952.2(b)(6).) Often times, this is difficult to do.
Moreover, once a meeting has been agendized as a subcommittee meeting, if a third
Councilmember decides to participate in a discussion, it is too late to simply change the nature of
the meeting to a full City Council meeting.
Thus, the City Council believes that the presence of non-subcommittee Councilmembers at
subcommittee meetings poses an undue risk of a violation of the Brown Act. While such
presence is permitted by the text of the Brown Act, the City Council believes that it is
inconsistent with the spirit and purpose of the Brown Act. The City Council recognizes that it is
the right of every citizen, including all City Councilmembers, to attend subcommittee meetings,
and participate as members of the public. However, the City Council further believes that the
work of subcommittees is best and most efficiently performed without the presence of non-
subcommittee Councilmembers at subcommittee meetings, which efficiency is hampered by the
participation of non-subcommittee Councilmembers, and that ample opportunity for review,
discussion and debate concerning matters that are taken up by the subcommittees exists when
such matters are brought before the full City Council.
As such, it is the declared policy of the San Jacinto City Council that City Councilmembers not
attend subcommittee meetings to which they are not duly appointed.
11.6 Working Outside of Subcommittee Process
Part of what makes the subcommittee process efficient is the development, retention and use of
specialized “expertise” within a particular field among the subcommittee members. For
example, a Councilmember who has been on the water subcommittee for some time will have the
opportunity to develop expertise in water-related issues. This enables those on the subcommittee
to more effectively interact with the various stakeholders, both within and outside of the City
organization, and make considered recommendations to the full City Council. Indeed, other
stakeholders (especially those outside of the City organization) may come to expect and rely on
such expertise on the part of Councilmembers who serve on the subject subcommittee.
In addition, involvement of Councilmembers in committee work outside the scope of their
respective subcommittees increases the likelihood of a Brown Act violation, by potentially
involving more than a majority of the City Council in the process of considering the same City
business.
“Committee work” can include, but is not limited to, fact-finding efforts (either within or outside
of the City organization) concerning the subject matter of a particular subcommittee and making
verbal or written statements that could be construed as statements of City policy concerning the
subject matter of a particular subcommittee.
PACKET PAGE: 100
AGENDA ITEM 3A.7
24438.00000\8508905.6 -24-
Again, the City Council recognizes the right of every Councilmember to be informed of City
business and participate in the decision-making process.However, the City Council believes that
this right can be fully exercised at agendized City Council meetings.
As such, it is the declared policy of the San Jacinto City Council that City Councilmembers not
engage in committee work outside of the scope of the subcommittee(s) to which they have been
duly appointed.
11.7 Violation of Policy
Violation of this policy by City Councilmembers may, at the discretion of the City Council,
result in consequences including, but not limited to, censure and/or loss of City Council
privileges such as stipends, health and welfare benefits, reimbursements, and policy
appointments.
12. COUNCIL APPOINTED CITIZEN BOARDS / COMMISSIONS / COMMITTEES
The purpose of this procedure is to outline those actions that will be taken in appointing
members of the of the City of San Jacinto Boards, Commissions, and Committees.
12.1 The Maddy Act
The Maddy Act takes into consideration the vast and largely untapped reservoir of talent among
the citizenry that is not aware of the opportunities for participation on advisory boards and
commissions. For that reason, the Maddy Act was enacted to cause maximum public awareness
of both regulatory and advisory boards and commissions open for appointments by the City
Council (Government Code Section 54970).
12.2 Appointments List
On or before December 31, of each year the City Clerk shall cause to be posted a list of
appointments of all ongoing boards, commissions and committees, which are appointed by the
City Council. This list must include where and when they meet, the present membership and
terms of office for each member the necessary qualifications for the position (Government Code
Section 54972).
12.3 Availability to Public
One month prior to the scheduled expiration of a board or commissioner’s term of office, the
City Clerk shall give notice of such expiration and qualifications for the position in a posted
notice and a press release to the newspapers of general circulation within the City. Appointment
to that vacancy shall not be made prior to ten (10) working days after the release of such notice
(Government Code Section 54974).
PACKET PAGE: 101
AGENDA ITEM 3A.7
24438.00000\8508905.6 -25-
12.4 Notification of Incumbent
The incumbent whose term is expiring will be given notice of the expiration of the term office
and requested to submit a letter requesting reappointment to an additional term if that is their
desire.
12.5 Unscheduled Vacancies
Whenever an unscheduled vacancy occurs due to resignation, death, termination or other reason,
the same noticing will be accomplished as for a scheduled vacancy, within twenty (20) days of
the occurrence of the vacancy. Appointment to that vacancy shall not be made prior to ten (10
working days after the release of such notice (Government Code Section 54974).
12.6 Submission of Candidates to the Council
A list of candidates requesting appointment to a term of office will be submitted to the City
Council for its consideration at it’s next regular meeting.
12.7 Interviews
Any City Council Member may request a time set for interviewing candidates for appointment,
at which time all Council Members may participate in the interview process. If more than two (2)
Council Members participate in the interview session, it will be an open meeting with notice
given and the public invited.
12.8 Follow-up After Appointments
After the City Council has appointed a candidate to fill a position, the City Clerk shall notify the
new appointee, including such information as their term of office, when and where they meet and
the staff member to contact if they have questions. In addition, the appropriate staff contact shall
be notified of the appointee’s name, address and phone number for follow up. The City Clerk
shall also notify unsuccessful candidates, thanking them for their interest in serving the City of
San Jacinto.
THE WORK OF THE CITY COUNCIL
Success or failure of the Council-Manager form of government rest largely on the shoulders of
the people’s representative’s in the City Council. The City Council may remove an ineffective
manager at any time, but an ineffective Council continues in office until the next election or is
changed by a successful recall election. Conscientious council members, as representatives of the
community, can render better service if they know their duties, are aware of their responsibilities,
and are ever mindful of the best methods of carrying out their trust.
Unlike some other systems of local government the City Council under this plan dominates the
governmental establishment, selects and gives direction to the City Manager and enjoys all the
importance and responsibility of a board of directors. The chief duty of the City Manager is
administration. The Council is responsible for making certain that the manager administers the
PACKET PAGE: 102
AGENDA ITEM 3A.7
24438.00000\8508905.6 -26-
affairs of the City in a capable manner, while the manger must make recommendations to the
Council on municipal policies.
Determination of Policy
The people elect the City Council. The Council determines the policies of the City government
and appoints, directs and, if necessary, removes the City Manager. In determining policy Council
Members do their best to represent their constituents. All phases of the job are involved in one
way or another in the determination of policy.
What is meant by the determination of policy? Basically, it is the process of deciding what is to
be done. The Council should not confuse this with how a program is to be administered, which is
the job of the City Manager. In its simplest terms, “what to do” is policy making and “how to do
it” is administration.
The City Manager can help the Council a great deal in studying and determining municipal
policies. As an example, the most important problem facing a city government each year is the
budget. The City Manager gathers the information and prepares the budget, which the Council
studies and reviews as necessary and then adopts. The City Manager utilizes the budget as an
effective tool in carrying out city policy.
In determining policy, the Council must make decisions, authorize their implementation, and
accept full responsibility for the results. Thus, the Council must hold the City Manager
responsible for administering policy decisions properly.
In any City Council, the determination of policy takes the form of passing a law. City Council
laws are ordinances or resolutions. An ordinance has the force of law and usually includes what
remedies will be made if the law is not followed. A resolution reflects the intent of the Council.
How does the Council arrive at these policy decisions? Briefly there are four steps in the process:
Determining what is needed. Many sources of information are available — Council Members’
observations, requests of individual citizens or citizens’ groups and the recommendations of the
City Manager. Increasingly, city government has established various mechanisms for obtaining
citizen input through advisory committees, panels and neighborhood meetings. These can
provide valuable guidance for Council Members.
Determining the will of the people. In some cases, the proposed program may have been a major
issue in a recent election. Otherwise the view of interest groups, discussion with individuals and
Council Members’ reactions as a citizen must be evaluated.
Determining what can be done, financially, practically, and legally. Here the advise of technical
experts — the City Manager and the staff — should be considered carefully.
Taking action — passing, modifying or defeating an ordinance or resolution. The City Manager
and the City Council must work as a team in a spirit of mutual confidence and cooperation.
PACKET PAGE: 103
AGENDA ITEM 3A.7
24438.00000\8508905.6 -27-
Supervision of Administration
The second major part of the City Council’s job is general responsibility for requiring effective
administrative action through’ the City Manager. The manager receives all questions or
criticisms which the Council may have concerning the execution of ordinances or performance
of duty.
If something goes wrong, the manager stands responsible to the council. For example, if the
Council (or a single member) has a complaint or question about the administration of a loading
zone ordinance by the police department, it should not contact the Chief of Police or one of the
officers but should present the complaint to the City Manager.
Then, if the situation is not remedied, the manager must answer for it.
The Council must, therefore, develop a working relationship with the manager. First, the Council
is responsible for selecting a capable City Manager; second, for seeing that the Manager has a
chance to administer policy properly; third, for evaluating administrative accomplishments; and,
fourth, for supporting the City Manager who is carrying out the will of the Council.
Selection of a City Manager
How does the Council go about selecting a City Manager? It is a difficult task since the position
of City Manager is one with which the average Council Member will have had no previous
experience in filling.
Before an intelligent selection can be made, Council Members must know something about the
job they are trying to fill. What is a City Manager supposed to do? How will time be spent? The
person is a manager working for a governmental unit to go beyond the governmental work for
the people of the community.
The City Manager is the Chief Administrative Officer whose task is to make certain the work of
government is carried out at a high level of competence, the democratic controls over policy
imposed by the City Council are transmitted to the administrative employees, and the City
Council receives adequate advise on the technical implications of its decisions.
Administrative officials of a City do not pave its streets, put out its fires or prevent crime —
laborers, firefighters and police officers are hired to do that. Nevertheless, the reason there is a
chief administrative officer is to make sure the persons responsible for performing these very
tangible and definite services do their work well and in such a way their respective efforts are
coordinated to achieve the best overall results.
It is not easy to specify qualifications for a competent City Manager. To some, these will vary
with the size and nature of the City, including its type of plans for development. The Council
should in the beginning, make at least a tentative decision regarding qualifications of training,
experience and personality. Moreover, it is advisable the Council reach an early agreement on
the procedure to be used in making the selection.
PACKET PAGE: 104
AGENDA ITEM 3A.7
24438.00000\8508905.6 -28-
These things done, the Council or a subcommittee of the Council can proceed. More than likely
the best-qualified candidates are already employed. Therefore, the Council should not depend
entirely on voluntary applications, but should conduct a search in other cities.
The International City/County Management Association (ICMA) can provide a current directory
of all City Managers and City Administrators. In addition, on request from responsible
representatives of the City Government, the association will furnish brief statements of the
experience and training of specific applicants. The association also lists cities, manager and
administrator vacancies in its bi-weekly ICMA Newsletter, with details of salary and
qualifications. Most state leagues of municipalities/cities are also able to provide helpful
information to communities wishing to hire managers or administrators.
Many City Councils rely on three standard procedures for rating candidates; an application form,
a personal investigation, and an oral interview. From the application information is gained
regarding education and experience. The personal investigation makes possible a check on the
candidate’s integrity and an appraisal of previous work. This may require only a check with
references by letter or phone, or it may lead t a visit to the city where the applicant has served or
is serving. The Council should be very thorough on this point. In the oral interview, opportunity
is given for an appraisal of such traits as force, tact, personal appearance and sense of humor.
Since it is probably the one time before the actual appointment, the manager and Council will see
each other, they should reach agreement or understanding on a variety of topics of mutual
interest — major local problems, the division of responsibility between the Council and
Manager, attitude towards assistants for the manager, political conditions and other matters either
stated or implied.
Councils generally select individuals who have served as managers or administrators in other
cities or as administrative assistants. During recent years, more than half of all newly appointed
city managers and administrators have had such backgrounds. The next largest group of
appointments has come from other public administrative positions such as finance officers, city
clerks, and other city department heads. Generally, less than 10% of the city managers or
administrators appointed in any year come from non- government positions. Several universities
now offer graduate programs in public administration, and many cities have tended to require
such educational backgrounds.
As Councils are primarily interested in applicants’ training in municipal administration,
appointments generally are made without regard to place of residence. About three- fourths of all
managers or administrators appointed in recent years have been from other cities.
When the selection is finally made, it should, if at all possible, be unanimous. If this is not the
case and the Council offers the job on a split vote, the person should be informed, as this may be
a factor in the decision whether or not to accept. Some will not take a job offered on a split vote;
others are intrigued by the challenge it implies. In any case, honest differences openly aired lead
to mutual confidence and respect.
Both the Council and the Manger should clearly understand the appointment is for an indefinite
term and the Manger will serve at the pleasure of the Council. The heads of all the City’s
PACKET PAGE: 105
AGENDA ITEM 3A.7
24438.00000\8508905.6 -29-
administrative activities are appointed by and are directly responsible to the Manager with the
exception of the City Attorney.
City Attorney
The Council appoints the City Attorney, like the City Manager. This position is independent
because the City Attorney is not responsible to the Manager but works directly for the City
Council and, therefore, occupies a position outside of the departmentalized structure of the City.
The City Attorney represents the City of San Jacinto and the City Council in litigation against the
City and provides advice and counsel on all legal matters before the City Council.A Council
Member may seek legal advice concerning the affairs of the City at any time from the City
Attorney and City Attorney’s staff. The City Attorney’s office is also available to advise any
Council Member on conflict of interest matters.
Other Council Appointments
Board, commission and subcommittee members are appointed either by the Mayor or City
Council. They are generally advisory in nature and are limited to a particular area, such as
zoning (Planning Commission). A listing of appointed boards and commissions can be found in
the section entitled “Agencies, Boards, Committees, and Commissions” later in this handbook.
Relations with Colleagues
The Council looks to the Mayor for leadership at public meetings and to exert every effort to
unite the Council into a working, cohesive group. This requires the assistance and cooperation of
the members. Much of the success of local government depends on how well the Council
functions as a team.
The Council operates as a unit, and all members must be tolerant of each other’s views. There
are many opportunities for real differences of opinion in municipal affairs; this is the democratic
process in action. It is unwise, however, either in or out of the council chamber, to impugn,
attack or challenge as false the motives of a colleague with a different point of view. All
members at one time or another will find themselves in a minority position on some issue.
Most Council Members have or soon develop a spirit of compromise. To achieve anything
requires action by majority. It is not possible to “travel alone” and accomplish much that is
constructive for the citizens. The able Council Member learns to work with colleagues, with the
Manager and with the public. This is not to imply lack of principles for which to fight or stamina
to speak out when the occasion arises. To be most effective, the Council Member must learn to
round off sharp corners and to cool tempers and to be tolerant and understanding of colleagues.
This does not mean following colleagues blindly for the sake of unanimity. A member in a
minority position on a particular issue has the responsibility to vote his or her beliefs. To do less
is to shirk an important public duty.
Responsibilities of the Mayor and Council for Public Leadership
In addition to presiding at all meetings of the City Council, the Mayor is the official head of the
City for all legislative policy and ceremonial purposes and executes all legal instruments and
PACKET PAGE: 106
AGENDA ITEM 3A.7
24438.00000\8508905.6 -30-
documents on behalf of the City. The Mayor is not vested with administrative authority and does
not interfere with the activities and authority of the City Manager who is the chief administrative
officer. The Mayor functions as the chair of the City Council, as well as the affiliated entities of
the City (Successor Agency, Housing Authority, etc.) and as a policy leader.
Exercising responsible public leadership is a difficult and delicate task. It is the fundamental role
of the Mayor and Council and it requires both to generate and to promote community wide
programs by mobilizing local resources. The ability to reconcile diverse interests is important:
Every policy decision the Council makes has the potential for conflict, which may undermine the
popularity of the officials.
Leadership Alternatives
To meet this responsibility, Council Members may respond to any one or a combination of ways:
· The first way may be to react to outside pressures only, transmitting constituent wishes
and demands into the council chamber.
· A second response may be to arbitrate conflicting interest, with primary responsibility
being to resolve issues to the satisfaction of all contending forces.
· The third response may be to conscientiously study problems facing their City, determine
alternative solutions, explain problems and possible solution to the general public, and
decide on a source of action believed to be best of the general welfare of the community.
Many contend that this last alternative is public leadership. Such a conclusion is based on
the belief that the Council is in the best position to take a broad overview of community
needs and to determine how resources can be allocated to meet them.
Public Leadership
The Mayor and Council should take the following steps to assure responsible public leadership:
First critically examine traditional City policies and operations. — The fact that a City function
has traditionally been performed in a certain way is not justification for exempting it from
changing or requiring new responses. These responses signal a challenge to the past and to
traditional methods of operation. This means that the Mayor and Council are often placed in the
uncomfortable position of choosing between the past and the future with the past being known
and understood and the future being unknown and sometimes unwanted.
Second, assume the role of community opinion leader. - There will be times when the Mayor and
Council must attempt to change public opinion and to convince citizens that a more difficult
course of action may be better suited for long range objectives. For example, at a time when
public opinion may seem to be demanding lower taxes and decreased spending, the Mayor and
Council may determine that community problems demand new services and increased
expenditures. Under such conditions, the Mayor and Council have a responsibility to call to the
attention of the public the necessity for providing the new services.
PACKET PAGE: 107
AGENDA ITEM 3A.7
24438.00000\8508905.6 -31-
Third generate public support for community programs and services. - In many ways the most
important public responsibility is to generate public support. This means the Mayor and Council
must inform citizens about government problems, programs and activities in a continuous
process of explaining, persuading, and ultimately getting broad based support. This is a difficult
process, which involves a multiplicity of human relationships and a maze of selling techniques,
including telephone calls, sidewalk meeting and appearances before citizen groups, clubs
luncheon groups and neighborhood organizations.
Gaining Support
Citizens are not likely to band together spontaneously to define and support long range programs
for community improvement. On the other hand, they will allow themselves to be organized in
support of community improvement programs. This following are several examples of ways the
Mayor and Council can gain citizen support.
· Identify problems, both human and physical, whose solution is essential for community
development. For this, the City Manager and staff can be of great assistance. Enlist
support of local businesses, labor, educational, professional, industrial and religious
leaders to create a better understanding of the mutual and interrelated responsibilities of
each group to promote progress.
· Utilize the communications media and personal appearances to maintain good
community relations with citizens’ groups, clubs, neighborhood groups and voluntary
organizations. Use the program to promote citizen understanding and discussion of
problems and programs.
· Enlist the assistance of a cross section of citizens, specialists and community leaders on
advisory boards and committees to broaden understanding of and participation in
community problem solving.
· Actively participate in organizations of public officials that are concerned with improving
municipal government through cooperation with other local governmental units,
exchange of information and promotion of state and federal measures to help local
governments serve their citizens better.
Exercising public leadership is a difficult responsibility. It requires critical examination of
traditional ways, receptiveness to new ideas and willingness to face controversy and criticism.
Public leadership, joined with power of the Council to make policy decisions, must be exercised
with intelligence, caution and self-restraint; but it must be exercised, for lack of leadership today
will only bring greater problems for the City in the future.
Citizen Inquiries
Often a constituent will call a Council Member with a question or a complaint about a particular
problem. Sometimes the complaint is related to not understanding why a particular action is
taken and sometimes it relates to how a service has been provided or not provided.
PACKET PAGE: 108
AGENDA ITEM 3A.7
24438.00000\8508905.6 -32-
When particular service issues or questions come up; the staff is also concerned about getting a
quick and accurate response to a citizen. The most effective way for the staff to ensure this
response is for the Council Member to call someone in the Manager’s office with his/her
concern. Staff will follow up with the citizen directly or give the information back to the
Council Member, whichever is preferred. Complaints or questions can be directed to the City
Manager, an assistant or acting City Manager or an administrative analyst in the Manager’s
office.
DUTIES BETWEEN COUNCIL MEETINGS
In determining policies for the City, Council Members will confront a bewildering array of
issues: zoning, utility rates, water and sewer mains, building codes, job classification plans,
budgets and a host of other technical subjects. Obviously, no one can be expected to be an expert
on all of these subjects, yet each must know enough about them or know where to find
information in order to act intelligently.
Ordinances are designed as solutions to community problems. Unfortunately, community
problems are rarely clearly defined. As elected officials, Council Members must look for the
answers in their constituencies, their conscience and their common sense.
What Must the Council Member Know?
Council Members must be able to determine three things to carry out properly the duties of
office:
· What needs to be done;
· What the people want done; and
· What (in broad policy) is the best way to do it.
The answers to these three questions are not necessarily always in harmony. Some things may
need doing and technically can be accomplished easily, but the people may not want them. An
example might be more traffic officers and radar equipment to catch speeders.
Some things, which the citizens want and need, may not be technically feasible or financially
possible at the moment. An example might be extensive street repairs, which calls for studies in
engineering and finance. Again, some things, which the people want and which can be attained,
may be less urgent than other needs. An example might be a demand for a specific park
improvement, which must be judged in relation to other capital outlay needs. The Council must
resolve these differences.
Where can the answers be found? Where can information be obtained?
Actually, the problem is not so much one of obtaining information, as it is of sorting out the
correct answers from the mass of material with which the policy maker is deluged. To determine
the needs of the City, Council Members have recourse, first to their own observations. More than
anything else, it is essential to know the community.
PACKET PAGE: 109
AGENDA ITEM 3A.7
24438.00000\8508905.6 -33-
Even before election, members will have ideas about city needs. Once in office, talking with
groups and individuals and keeping in touch in general with what is going on will provide more
ideas. As citizens and individuals, members should express ideas and opinions and not simply
react when a voter presses a button.
A second source of information comes unsolicited in the form of complaints, suggestions and
ideas submitted by interest groups and individual citizens. These deserve courteous and careful
attention, as they are a valuable source for determining the needs of the city. These people are
citizens and taxpayers, a fact that Council Members frequently have called to their attention.
The third source of ideas is the City Manager and the administrative staff. They look at the City
through the eyes of professional managers, and the problems they see and the suggestions they
offer for their solution may be far different from those presented by the layman.
Once the Council Member has assimilated the information garnered from all sources and
determined the necessary action, there is a second decision to make. What do the majority of the
people want done? The primary duty of the Council is to put into effect the will of the majority
of citizens as far as practicable. Members have the right to convince citizens of the worth of a
proposal they deem important, but the wishes of the constituents should always be taken into
consideration. At the same time, pressure groups, often representing only a small but very vocal
special interest segment of the community, must be handled. As far as possible, the Council
should consider issues on a City-wide bases rather than by section or districts.
The Council Member will have plenty of volunteer help. Various interest groups purporting to
represent the will of a majority of citizens will be there whenever any important issue is
involved. These groups often are determined minorities, and they should be given consideration
so far as they provide valuable clues to the state of public opinion. Personal investigation -
talking to individuals and with small groups, club members, church and civic organizations - is
very important.
The Council Member will glean some idea as to what the public wants from newspapers, radio,
and television. In this learning process, the tactics of deliberation are most important. This is not
to advocate delay as a course of conduct but rather to stress the important principle of proper
timing. Publicity and time permit opinion to crystallize. Community groups can organize, present
arguments and otherwise reveal their positions, thus making it easier for the Council to reach an
acceptable conclusion.
The Council, as a whole, occasionally may make effective use of temporary citizen advisory
committees, which generally serve two basic purposes.
Fact finding and advise, to aid the City Council and Manger in arriving at a solution to a specific
problem; and
Public relations, to gain community-wide support for a specific program of activity.
When such a committee is used, the Mayor or Council should appoint the members, including
the person to preside; municipal employees should not be voting members. The resolution
creating the committee should state its nature and purpose, funds (if any) and staff aid to be made
PACKET PAGE: 110
AGENDA ITEM 3A.7
24438.00000\8508905.6 -34-
available, and the completion date for the assignment. It is important the committee recognizes
all its recommendations will not necessarily be put into effect.
What is the best way to accomplish the desired end? This question confronts the Council in
determining the best course, whether on broad policy matters or on technical questions of zoning,
utility rates, water lines and the like. The Council, in the final analysis, must rely heavily on the
City Manager and department heads for information. The City Manager should supply the
Council with all of the pertinent facts together with recommendations.
The City Manager has access to important sources of information, including official publications
of the federal and state governments and other municipalities, as well as publications of the
International City/County Management Association (ICMA) and the League of California Cities,
which also provide management information services to cities. There are also private consulting
firms for special problems, state leagues of municipalities and private state, or city-sponsored
research bureaus and education institutions, which are excellent sources of technical information.
But the chances are good that a capable City Manager has already consulted them, if such
consultation is necessary, before submitting suggestions to the Council.
The Council’s Public Relations
Public relations are not only a function of management, but are also a necessary and important
activity of the Council in providing political leadership. The Mayor, as pointed out earlier, plays
an important role as a political leader. But the Mayor cannot take the step alone to win popular
support of the City’s programs. The Council as a whole must assume this responsibility or the
community will suffer.
What does leadership mean? It means taking the responsibility for educating the citizens about
the City’s programs and goals. The Council is in a position to get more facts than the citizens.
This means that if a proposed policy is considered to be good, it is the Council Members’ duty to
take a stand on it and to do everything possible to secure its adoption. It is true that a member
may be able to ensure re-election by constantly keeping an ear to the ground and supporting only
those things that are popular but this will not necessarily make a good representative. A Council
Member should be responsive to, but not afraid of the electorate.
Like all human beings, Council Members appreciate receiving credit for good performance and
react favorably to good publicity. No one knows better that the voter is the boss. The voter
decides who will serve on the Council and for how long, as well as what the Council will do.
A Council Member will be wise not to make decisions or promises until the City Manager has
collected the necessary information and suggested a policy. This is especially true for the
newcomer who may be approached by some citizens to make commitments on matters which
former members have avoided for good reasons.
How long the Council Member remains at City Hall, and how effective while there, depends to a
large degree on public relations — with the individual voters, newspapers, radio and television,
all kinds of clubs, civic and professional organizations, as well as various minority groups.
PACKET PAGE: 111
AGENDA ITEM 3A.7
24438.00000\8508905.6 -35-
Arthur W. Bromage gave some sage advice:
The local newspaper has an expert ‘snooper’ at city hall. He sits in
on all the Council meetings. He may be a young ‘cub,’ but the old
timers back at the paper will have taught him what is news and
what isn’t news. If he is an old timer himself, he will be sort of a
senior alderman. He may not vote at City Hall, but he can vote in
the newspaper by the way he writes his story. You had better get to
know the City Hall reporter. He won’t be offended if you give him
a carbon copy of the great speech you delivered in council and you
should not be offend if most, or all of it, goes into the City Editor’s
waste basket. When you want to put over a policy in the pubic
interest, the newspaper can and will help you. If they give you a
good play, it won’t be because of you but because of the policy.
Remember that! It will avoid unnecessary revision of hat size!
Contacts with constituents will come in many ways: by telephone, letter, and personal contacts of
various kinds. Citizens want to see their Council Members, to hear what they have to say. Those
who are not interested enough to make public appearances, to attend meetings, to view proposed
zoning changes — in other words, to meet the people and view their problems — will not hold
confidence and respect for long.
Many of the representative duties and responsibilities of an elected officer cannot be delegated.
This means extra hours and much activity. Experience is still the best teacher, and this holds true
for a legislator, as well as for a manager. Without these contacts, the Council Member will not be
able to serve as a representative.
The average citizen does not always understand the principles of this form of government, does
not see why the person elected to the Council should not personally see that garbage is collected,
streets are paved or property rezoned. One of the greatest problems is “getting across” to the
public that the true function of a Council Member is to be a generalist in policy making, while
actual administration is carried forward by the City Manager, principal subordinates, and
employees. Here the City Council and the Manger should collaborate in using radio, newspapers
and other media to inform the public on the division of responsibilities.
Other Duties Between Meetings
Everyone knows that a lot of the iceberg is below the water line. So it is with a Council
Member’s work. A great deal of effort takes place between Council meetings!
Citizen Complaints: Every Council Member can expect to receive complaints from citizens
about some phase of City administration. Such complaints should be referred to the City
Manager, who will correct the situation if action can be taken in a manner consistent with City
policies. The manger then will normally notify the citizen in writing of the action taken, sending
the Council Member a copy. Sometimes the complaint will involve something that cannot be
accomplished without a change in the City ordinances. When this happens the Council Member
PACKET PAGE: 112
AGENDA ITEM 3A.7
24438.00000\8508905.6 -36-
should explain the situation to the citizen, and if warranted, ask the City Manager to develop
some recommendations for correcting the situation.
Home Work: Current procedure is to send out the agenda, reports, and recommendations in
advance of the Council meeting. Like any board of directors, Council Members will have to
prepare for the meeting by reading materials forwarded by the Manager.
Contact with Voters: Enough has already been said to indicate the side variety of necessary
contacts. Most of these are worthwhile and assist in policy making. Any contact with a voter,
which requires urgent attention, should be reported to the City Manager between Council
meetings.
Ceremonial Duties: Every Council Member can devote as much time as possible to selling
policy which is coming before Council for decision, or which has been submitted by the Council
to a public referendum. Capital improvement programs which require bond issues are
particularly time consuming.
Press, Radio, and Television: Handling the press is a major factor when issues are “warm” at
City Hall. It is not the responsibility of the press, radio or television to keep a Council Member
from making premature or erroneous statements. Usually, as decisions shape up, the Council
Member can pretty well determine in advance what the news angle will be and prepare
accordingly for the inevitable telephone call.
Representing the City: Representing the City at the state legislature and in matters of municipal
interest that come before Congress is an important task. Most contacts with elected members of
the state and national legislative bodies generally should be made by the Mayor or Council
Members, rather than by its Manager.
Comparative Study: Council Members can acquire comparative ideas about municipal
government by reading such monthly magazines as Public Management, American City and
County, Nation’s Cities, and Western City.
Conferences: Council Members receive invitations to attend state and national conferences
dealing with municipal problems. These afford opportunities to learn how other cities tackle and
solve similar problems. It is particularly important to attend the annual meetings of the League of
California Cities.
Campaigns: When time for re-election rolls around, the Council Member has the dual burden of
serving on the Council and conducting a political campaign at the same time.
RELATIONSHIP OF COUNCIL TO MANAGER
Of all relationships existing throughout the Council-Manager form of government, none is more
important than that of the Council and the Manager. The Manager is responsible to the Council
for the proper conduct of all City activities under the direction of his/her office, providing
information and advice and making recommendations. The Manager is the Council’s technical
advisor and consultant, but only the Council can make laws and establish policies. Thus, the
burden for political leadership falls squarely on the Council.
PACKET PAGE: 113
AGENDA ITEM 3A.7
24438.00000\8508905.6 -37-
The City Manager cannot and must not permit his/her self to assume responsibilities that rest
exclusively on the City Council. The City Manager can and should outline desirable community
goals, but not make an issue of the proposals. If the Council cannot be convinced of the logic of
the plans, the Manager will devise another plan or simply follow the Council’s instructions. But
once the Council has acted, the Manager may assume the responsibility as an administrative duty
of acquainting the public with the policy, which has been adopted.
What Council Expects from the Manager
The Council has a right to expect administrative leadership from the Manager. The Manager
knows the status of City finances, personnel and projects. The Manager must fulfill the
expectations of the Council within the limits of the funds and personnel made available.
The Manager is expected to appoint competent department heads, within the price the Council is
prepared to pay. Those serving important city positions should command respect from their
employees, from citizens with whom they deal, and from the City Council. Providing service
always involves costs, and the extent of expenditures is subject of Council decision.
Again, the Council has every reason to expect the Manager will prepare a sound budget. The
adopted budget, whether it is the same as the Manager’s recommendations or not, will be
administered in accordance with the final decision of the Council. If the Council has stipulated
that certain items in the proposed budget should be cut below the manger’s estimates, the
Manager will explain the administrative implications of such reductions but will conform to the
Council’s requirement and will do the best possible job with available funds.
The Council, as a policy-making body, has every reason to expect it will be kept informed of the
City’s financial condition and future needs. In most cities, the Council has few sources of
information for guidance in the formulation of fiscal policy other than recommendations made
by the Manager. Competency in this vital area is one of the bases on which the Council may well
judge a Manager.
The Council must look to the Manager for regular reports on such matters as estimated revenues
compare with actual revenues and appropriated funds compared with actual expenditure. It is
important that the Council know at regular intervals how the City’s fiscal plan for the year is
working out in actual dollars and cents. There should be progress reports dealing with the capital
improvements program, including work done, rate of expenditures, funds remaining
unencumbered and unallocated funds.
The Council should be kept informed of the City’s debt status, the condition of the bond market,
the possibilities of refunding high interest issues, if any, and data concerning the sale of
redemption of bonds. The Council should be informed of any emergency needs not anticipated in
the budget and suggested means for meeting these needs. Finally, the Council should know the
need for future capital expenditures and whether they should be financed by general obligation
bonds, revenue bonds, special assessments or from current revenues. Utility expansions or
equipment, a new fire station and other critical demands created by the growth of the City, must
be considered long in advance of actual contracts making.
PACKET PAGE: 114
AGENDA ITEM 3A.7
24438.00000\8508905.6 -38-
The Council, also, can reasonably expect the Manager will keep it informed of numerous
situations, which may create future demands on its time and resources. For example, if a demand
is developing for a new type of service or expansion of existing service, the Manager should
indicate the source and kind of pressure being brought to bear. As soon as possible, the Council
should have information regarding probable cost in operating expenditures and capital outlay.
Ultimately, the Manager will make final recommendations and the Council must make the final
decisions.
The Council will expect the Manager to be capable of formulating recommendations, of
extracting information and suggestions from employees, of administering the laws of California
and the City and of reviewing and improving operations.
In addition, the Council will be well advised to ask for the Manager’s recommendations on any
legislative matters. The impact of citizen resentment often bears more heavily on administration
officers than it does on policy makers. The problems encountered by Managers in carrying out
restrictive ordinances and the difficulties in meeting situations where legislation is inadequate
are, in many instances better known to the Manager than to Council Members. Where
circumstances warrant, the Manager will submit alternative proposals on policy matters together
with their advantages and disadvantages.
The Council can and should expect the Manager to relieve it of all possible administrative detail.
It is the Manager’s duty to handle these details expeditiously, fairly and with proper record
keeping so any questions arising later may be answered readily. The manager is responsible for
follow-up on projects and problems which arise.
The Council rightly expects the Manager to carry out its decision and to report on the disposition
of problems.
In summary, the Council should expect the City Manager to:
· Be the chief administrative officer of the City, responsible to the City Council;
· Appoint, and when necessary for the good of the service, suspend or remove officers and
employees of the City under his/her direction and to direct and supervise their work;
· Prepare the budget annually, submit it to the Council, together with a message describing
the important features and be responsible for its administration after adoption;
· Prepare and submit to the Council at the end of the fiscal year a complete report on the
preceding year’s finances and administrative activities;
· Keep the Council advised of the financial condition and future needs of the City, and
make such recommendations as may be necessary;
· Recommend to the City Council a standard schedule of pay for each appointive office
and position in the City service, including minimum, intermediate and maximum rates
and appropriate action with respect to provisions of contracts negotiated with public
employees organizations;
PACKET PAGE: 115
AGENDA ITEM 3A.7
24438.00000\8508905.6 -39-
· Recommend to the Council (from time to time) adoption of such policies as may be
necessary or expedient for the health, safety or welfare of the community or for the
improvement of administrative services;
· Consolidate or combine offices, positions, departments or units within the jurisdiction of
the office, with the approval of the City Council;
· Attend all meetings of the City Council, unless excused therefrom, and take part in the
discussion of all matters coming before the Council;
· Supervise the purchase of all materials, supplies and equipment for which funds are
provided in the budget;
· See that all laws and ordinance are fully enforced;
· Investigate the affairs of the City, or of any department or division, investigate all
complaints in relation to matters concerning administration and in regard to service
maintained by public utilities, and see that all franchises, permits and privileges granted
by the City are faithfully observed;
· Devote all working time to the discharge of official duties; and
· Perform such other duties as may be required by the Council not inconsistent with state
law or ordinances.
While the Council Members have every reason to expect these and other services from the
Manager, they have a responsibility to see that the Manager has adequate staff assistance.
Managerial functions cannot be performed adequately without skilled subordinates in fiscal
procedures, personnel administration, law, planning and other staff services.
As the City increases in size, the Council cannot rightfully expect the best from a Manager
unless money is provided for key personnel to aid in the process of management. Similarly,
adequate pay for department heads is essential to well administered departments.
Manager’s Contacts with the Mayor and Council Members
Council Members and the Manager generally have found that their contacts should be confined
to group meetings as much as possible. Of necessity, the Manager will have a close working
relationship with the Mayor, particularly in providing support in the fulfillment of special
leadership responsibilities, including those of an intergovernmental nature. The Manager
generally cannot encourage the frequent recurrence of business related meetings with an
individual member of the Council and a frank discussion of the difficulties which are thereby
created for the Manager is probably the way of stopping the practice. The Manager generally
cannot be placed in the position of having favorites.
The Council can, however, expect the Manager to provide the means for individual members to
report complaints that they receive. Any action taken by the Manager in response to such
referred complaints should be consistent with existing City policy or be approved by the Council
PACKET PAGE: 116
AGENDA ITEM 3A.7
24438.00000\8508905.6 -40-
as a whole. Unless this is the case, an undesirable relationship with other members of the Council
is likely to develop. The Manager ordinarily will confine business contacts with the Council to
those that occur with the entire body in formal or informal sessions, or in standing or special
committee meetings.
When an individual member requests a specific and appropriate action or a report on a problem,
the Manager will be zealous in meeting the demands of the situation and will inform the whole
Council on any such matters that are of general interest. If a great deal of staff time is involved,
the Council as a whole should vote on whether the report should be done.
Manager in Council Meetings
There is no exact formula for determining the role of the Manager in Council meetings, except
that it usually conforms to what is expected by the particular Council.
The Manager and his/her principal staff attend Council meetings to supply additional information
and to advise on policy, problems, and projects. The facts should have been established by a
thorough report sent out in advance. The major questions arising in Council meetings should be
those of policy and on questions of fact. No one else at City Hall is in the same position to bring
this information forward as the Manager.
The City Manager should not attempt to dominate Council meetings. When the Council is in
public session the spotlight should be on the City Council not the Manager.
Council’s Contact with Administrative Personnel
To be most effective, the City Council deals with the City Manager on the general supervision
and direction of the administrative operation of the City’s government. Because the City
Manager acts on Council’s behalf, questions to staff by Council should be channeled through
him/her so that appropriate lines of communication are open and effectively utilized. Where the
information needed by an individual Council Member involves more than a simple answer that
can be immediately supplied by an employee, the request should be made to the City Manager.
Since administrative personnel are responsible to and perform work at the direction of the
Manager, any attempt by individual Council Members to short-circuit the Manager’s authority
by issuing direct orders to officers or employees, or by requesting detailed reports from them,
will not only cause friction in the administrative mechanism but also disrupts budgeted work.
Another phase of the same problem occurs when departmental officers seek to bypass channels
and develop a “friend” on the Council. By fostering such relations the Council Member can
make the Manager’s job impossible.
The Manager is directly responsible for obtaining action and reporting on a schedule satisfactory
to the Council, providing information, acting in accordance with Council policy and developing
recommendations when needed.
PACKET PAGE: 117
AGENDA ITEM 3A.7
24438.00000\8508905.6 -41-
Standards for Judging Administration
Perhaps one of the most difficult tasks for the Council is evaluating the City Manager. There are,
however, certain benchmarks for guidance. The attitude of the community towards the Manager
and employees is one guide to effectiveness. Both oral and written reports submitted to the
Council give some indication of the Manger’s competence.
Normally, most Councils will have one or more members with a good understanding of the
principles of administrative organization. Although the operation of governmental agency is
different from that of private business the principles of organization, in many instances, are
similar. Anyone skilled in business practices will be aware of the fact that the work done, the
customers served and area involved must control the organization of the agency. If the Council
finds that practice does not follow the paper organization, then the Manager should be asked to
explain why or to recommend necessary changes in structure.
The Council ordinarily will have members who know by experience how to secure cooperation
from employees in private business. It can, therefore evaluate the Manager through conduct of
subordinates and by how the they react to the direction. The Council can appraise the Manager’s
attitude toward officers and employees through recommendations on such personnel matters as
salary, promotion and fringe benefits. The Council has an opportunity to judge the Manager’s
ability when faced with complaints about employees, in investigating employee needs, or in
recommending action before employment problems become critical.
The Council can obtain some estimate of capability from the Manager’s handling of the budget.
Is it understandable? Can the needs of the City be visualized by reading it? Is there validity to the
recommendations? Are explanations clear and sound? The presence or absence in the budget of
standard summary tables, the Manager’s awareness of what other cities are doing with their
money, the comparison of estimates for the previous fiscal year with actual operations, the
completeness of the budget message - all these factors indicate to an alert Council the measure of
the Manager’s ability.
Complaints, which the Council receives from the public about the administration, may furnish
some index of managerial efficiency, although there are other factors affecting complaints. The
Council must discriminate between complaints against the administration and those against
policy being administered. A water shortage, for instance, which might be attributed either to the
Council or the weather, or both while greatly contributing to the number of complaints is not
properly a measure of administrative efficiency. On the other hand, the number and kind of
criticisms brought against the Manger and employees may indicate to a degree the Manger’s
ability and awareness of responsibilities.
The Manager’s attitude toward Council questions on administrative matters may be used as a
yardstick in evaluation. The Manager who encourages discussion on basic administrative
problems, and relates the “what” and “who” of actions and whose statements are borne out by
other evidence which comes before the Council, is probably well aware of what goes on in the
departments. The quality of subordinates is another index by which the administration may be
judged. The ability to meet standards, to develop recommendations and to administer Council
policies reflects the Manger’s ability to explain, delegate, inspect and coordinate. The
PACKET PAGE: 118
AGENDA ITEM 3A.7
24438.00000\8508905.6 -42-
promptness with which problems reported by the Council are handled — judged to term of other
problems being met - gives a further clue as to the manager’s effectiveness.
Other indications of the Manger’s performance are available, such as: What kind of agenda is
prepared for the Council meetings? How are current City problems reviewed and handled? A
vigilant Council will note citizen reactions to the Police Department; the general appearance of
the streets; the condition of the fiscal records as reported by the independent auditor; the
existence of the adequate controls over such operations as storerooms, purchasing under
competitive conditions and use of municipal automotive equipment; and the frequency with
which the Manger request emergency appropriations or other emergency actions by the Council.
All of these findings should be considered in light of recommendations being made by the
Manager to correct deficiencies.
Finally, the Manager should make frequent reports to the Council. Their completeness and
readability, and the soundness of conclusions, reached in terms of facts presented are good
indications of ability. Willingness to develop significant reports, to consult with the Council on
problems, and to recognize that all wisdom is not encompassed in the Manager’s office are
indicative of the official qualities as a manager. The insight with which the Council gains from
the Manager should indicate how staff is used and how recommendations are developed.
As a final element of control and evaluation, the City Council may conduct, on its own behalf, a
formal investigation of the City administration. This power is ordinarily used only when the
Council has reason to suspect failure and laxity in the performance of duties. Where a Council
works closely with the Manger, as it should, such a drastic step is rarely necessary. Nevertheless,
the power of investigation rests with the Council and can be brought into play in critical
situations.
Certifying Council Action to Manager
The Manager is responsible for informing department heads and all other employees of what
they must know in order to carry out both Council and administrative objectives.
It is seldom any policy retains its integrity as it goes through channels unless a guiding hand
watches over its movement. This is the Manager’s duty, normally being more acutely aware of
Council decisions than any other official, and ultimately responsible to the Council.
The Council as an Employer
The City Council will realize best results in dealing with the Manager by following sound
practices of employer-employee relationships developed in all types of public and private
employment. When the Manager is not performing as well as expected, the first order of action
for the Council should be to make clear what is expected. This should normally be done in a
private conference in the hope that a proper understanding of the issues will result in improved
performance. On the other hand, the Manager who does a good job should be given appropriate
recognition.
The following guidelines are suggested for Council Members in their dealings with the City
Manager:
PACKET PAGE: 119
AGENDA ITEM 3A.7
24438.00000\8508905.6 -43-
· When assignments are given to the Manager, make clear what is to be done and when the
work is to be completed.
· Give the Manager the tools necessary for the jobs assigned.
· Criticize the work or the City Manager when it is deserved, but offer the criticism in
private so that the issue can be analyzed objectively in an atmosphere of harmony and
mutual understanding.
· Assure the Manager of a fair hearing in controversial situations, and do not question the
Manager’s motives until both sides of the story are told.
· Act in an understanding and sympathetic manner.
· Give the Manager a respectful hearing on recommendations and proposals.
· Keep public meetings on a high plane by avoiding ridicule and sarcasm in relations with
fellow Council Members or the City Manager.
A Checklist for Council Members
What has been said in this handbook is, in effect, a general guide. As such it must be tested
against experience. The success or failure of democracy in a Council-Manager form of local
government depends on its Council. A Manager can manage, but only a Council can govern. A
Council should not be afraid of politics in the best sense of the word — the art of governing.
Someone has to make political decisions; that is the Council Member’s business.
The Council Member may find help in going over this checklist. The more questions that can be
answered “yes” the more effective the Member will be and the better the City government will
be.
Do I understand the basic principles of this form of government?
Am I prepared to exert leadership in policy making and leave the execution of policy to the
Manager?
Do I use the City Manager’s office in getting facts and figures, which lead to sound policy?
Am I working as a team with my colleagues on the Council and with the City Manager?
Have I familiarized myself with the City Ordinances and Council rules?
Do I make an effort to understand reports and recommendations prepared for Council’s
information and action?
Am I fair in presenting complaints directly to the Manager rather than going to subordinates?
Do I give the Manager reasonable time to explain a problem or to bring in a recommendation?
PACKET PAGE: 120
AGENDA ITEM 3A.7
24438.00000\8508905.6 -44-
Do I make an effort to understand the objectives of a proposed ordinance or ordinance
amendment?
Do I allow the Manager to explain the probable effect of a proposed ordinance on administrative
organization and operations before voting for or against it?
Do I seek advise from the Manager on the enforceability of a proposed ordinance?
Do I find out if similar ordinances have been used successfully in other cities?
Do I wait to get public reactions to a proposed ordinance before making a decision?
Am I open minded about proposed amendment designed to make an ordinance more acceptable
to the citizens?
Am I familiar enough with the budget to know how well it fits the needs of the City for new
services and capital improvements?
Do I think the proposed budget will provide adequate salaries and wages for City employees?
Does the budget, in my opinion, meet the basic needs of the city for new equipment in the next
fiscal year?
Do I give time to selling needed policies, services and projects to the voters?
Do I carry my share of public relations in dealing with voters, press, radio and television?
Do I judge the work of the City Manager by reasonable standards?
Do I deal with the manager through group action by the Council when it involves Citywide
policy and priorities?
Am I tolerant and fair minded toward my colleagues on the Council?
CITY ADMINISTRATION
Day to day operations is handled by the City’s departments. Currently, the City is separated into
several departments, which provide a wide range of services to citizens. These services range
from street potholes repairs to wastewater and sanitation services and building code inspections
to parks and recreation. The departments report to the City Manager (with the exception of the
City Attorney, who reports to the City Council) so that he/she can keep the City Council aware
of operational issues of importance and citywide concern.
City Manager
The City Manager is appointed by the City Council and serves at its pleasure. The Manager
provides professional leadership in the management of the City and execution of City Council
policies. He/she provides effective municipal services through the coordination and direction of
PACKET PAGE: 121
AGENDA ITEM 3A.7
24438.00000\8508905.6 -45-
all City activities, finance, and personnel. His/her office provides a liaison between the City of
San Jacinto and other governmental agencies and provides for effective public information.
The City Manager’s office provides services which include administering and executing City
Council policy; presenting recommendations and information to enable the City Council to make
decisions on matters of policy; responding promptly to all inquiries and request of citizens;
disseminating information regarding City activities; providing input on regional state, and federal
issues which affect the City of San Jacinto; maintaining a sound fiscal position for the City by
preparing the annual budget through the Finance Director and his/her department; administering
human resources and labor relations through the Human Resource coordinator; providing safety
programs to reduce liability exposure while assuring employees safe working environments
through the Risk Management division; supporting Council activities, including campaign
finance and Form 700 reporting through the City Clerk’s office; and providing technological
information services through the Information Management Services division.
City Attorney
The City Attorney is appointed by the City Council, performing professional and administrative
work as the chief counsel and legal representative of the City and providing legal counsel to the
City Council, City Manager, Department Heads, Agencies, Commissions, and Boards of the
City. The City Attorney’s office prepares resolutions and ordinances for the City Council;
provides the legal defense for actions brought against the City and agencies of the City; prepares
legal documents for the City Council, Planning Commission, Successor Agency to the
Redevelopment Agency, and other boards and agencies of the City; and represents the City in
civil cases and the people of the State of California in criminal cases.
The City Attorney’s office appears for and represents the City in the defense of civil actions,
including personal injury and property damage; represents the City in workers’ compensation
actions, and in administrative hearings; prepares misdemeanor criminal complaints and
prosecutes violations of City ordinances; prepares legal documents required for annexation;
general plan amendments; and establishments of special districts; and prepares and tries suits in
court for recovery of civil debts and damage claims.
Communications between the City Attorney and city officials (including City Councilmembers
and/or staff) are confidential, as are most private attorney-client conversations. However, the
City of San Jacinto (not any of those officials) is the “client” of the City Attorney. Because the
City is the client, only the City (acting through the City Council) can waive that that attorney-
client privilege. This means that any conversation between the City Attorney and any city
official may be confidential, but that the City Council may legally waive that confidentiality, if
the City Council determines that it is in the best interests of the City to do so.
The City Attorney is also responsible for ensuring that legal documents that he has reviewed
(ordinance, resolutions, contracts) are legally enforceable. Often, this is done through the City
Attorney “approving as to form” those legal documents. However, such approval as to form
does not necessarily mean that the City Attorney believes that the ordinance, resolution or
contract is necessarily a good or wise decision; but instead, just that it is a legal one.
PACKET PAGE: 122
AGENDA ITEM 3A.7
24438.00000\8508905.6 -46-
Financial Services
The Finance Department provides the City Council and City departments support in matters
relating to revenue generation, budgetary accounting and reporting, investments, business
licenses and permits, purchasing and real property management. The department’s support
division includes accounting, reporting, treasury and purchasing.
Police Services
The City contracts with the Riverside County Sheriff’s Department, to serve as the San Jacinto
Police Department. The San Jacinto Police Department provides for the safety and welfare of the
citizens of San Jacinto through maintenance of effective law enforcement systems, which
include: crime prevention, patrol, traffic enforcement, follow-up criminal investigations, vice and
narcotic enforcement, and community relations.
It is the goal of the San Jacinto Police Department to provide service fairly and impartially
throughout the entire community while maintaining integrity and professionalism. In order to be
as responsive as possible to community concerns, input is solicited from the public regarding the
development of policies which directly impact the quality of neighborhood life. An increase in
the community’s awareness of Police Department concerns provides both a better understanding
of police operations and the guidelines under which the Police Department is constrained by law
to follow.
Fire Service
Fire Service is contracted out with the California Division of Forestry through the Riverside Fire
Department.
Public Works
The Public Works Department has the responsibility for the construction, maintenance and
ongoing operation of San Jacinto’s public facilities, including the City’s wastewater facilities,
City streets, and the City’s wells. It is also responsible for the operation of. streetlights, traffic
signals, graffiti eradication and education, street sweeping, street signing and marking, public
improvement inspections, general public works maintenance, sanitary sewer and storm drain
systems, (solid waste and recycling services are contracted out), and for the procurement, repair
and maintenance of vehicular, non-vehicular and telecommunications equipment within the City.
The public works director oversees the operation of the department’s broad program areas, which
are included within the general divisions of administration, general services, street maintenance,
equipment, water and wastewater, and parks.
Engineer
The City Engineer is contracted to provide public improvement inspections, assists in planning
for orderly growth and development of the City by monitoring public and private development
from planning to project completion stages, as well as monitoring construction projects for
conformance with City specifications and standards.
PACKET PAGE: 123
AGENDA ITEM 3A.7
24438.00000\8508905.6 -47-
Water Resources
The City provides potable water to a service area that includes about 50% o San Jacinto
residents. The City’s water system includes three wells and three storage tanks. The water is
treated with chlorine, while iron and manganese are removed.
Development Services
The Community Development Director oversees the development department, assisting in the
orderly growth of the City and the upgrading of existing land use through the development,
implementation and maintenance of immediate, intermediate and long- range general and
specific community plans and policies. In addition, the department provides for public health and
safety and the promotion of an improved community environment through enforcement of
building construction codes and conservation standards and regulations.
Within the Planning Department, zoning, subdivision and other land use ordinances are
developed. General and specific plans, policies, and strategies for directed growth, community
preservation, annexation efforts and environmental quality are created for Council review. In the
Building Department inspections ensure that construction conforms with structure, health and
safety codes while procedure provide a quick permitting process. An improved community
environment is promoted through Code Enforcement of health and safety standards for existing
buildings as well as zoning, property maintenance, litter, abandoned vehicle, weed abatement,
and sign ordinance compliance.
The Economic and Community Development Department focuses on three key areas: Economic
Development, Redevelopment and Community Development (to the extent they still operate).
Programs concerning Community Block Development Grants (aka “CDBG”) (federally funded
programs approved by the City Council) are utilized to improve San Jacinto’s economy by
eliminating slums and blight, by providing housing programs and services benefiting low and
moderate income citizens. Other activities include marketing, application processing,
inspections and contract management services to assist low and moderate-income families with
rehabilitation of their dwellings through both loan and grant programs. Community
Development works with the Public Works and the Engineering consultant to construct needed
infrastructure improvements in low and moderate-income neighborhoods.
The Economic Development Division concentrates on activities that protect, improve and
diversify the local economy. These activities include the attraction of new industry, retention of
existing employers, working with various business organizations, coordination of permitting and
review processes, coordinating special events that attract new visitors and developers to San
Jacinto, and community revitalization for areas not providing necessary levels of service good
and jobs.
THE BUDGET
Budget Consideration
A most important power of the City Council is approval and adoption of the City budget by the
appropriation resolution. Only its general authority to pass resolutions and ordinances affecting
PACKET PAGE: 124
AGENDA ITEM 3A.7
24438.00000\8508905.6 -48-
the public health, safety and welfare equals the financial power of the City Council. The budget
document is presented to the City Council by the City Manager who is responsible for oversight
of its preparation. The City Manager heads up the budget team, which may includes the Finance
Director, the assistant to the City Manager, and other department heads.
The budget, as adopted by the City Council, sets the expenditures and revenues that will be spent
and/or generated during the fiscal year by each department. The City Council, as the controlling
agency in raising revenues, borrowing money and determining expenditures, should always
consider relevant state and federal regulation, public input and its own goals and policies and
determining the direction of the annual budget.
The Operating Budget
The City of San Jacinto’s operating budget is a planning document that mirrors the City
Council’s established goals and policies. By providing service delivery based on City Council
goals and policies, City departments ensure that the activities they undertake are those that are
articulated by the City Council, and are important to the community.
Since the operating budget implements City Council goals and policies, it is only natural that the
budget document highlight specific program service objective and action statement that
demonstrate how those goals and polices will be realized. Annually, City department develop
action plans that target progress toward or successful completion of City Council goals.
While funding for departmental budgets is prepared using a line-item budget — a budget that
focuses on what is to be bought — overall decisions and long range planning efforts are
concentrated at the program level. This essentially means that the City Council is looking at
service delivery from the perspective providing viable, quality programs to the citizens of San
Jacinto.
Structure of the Operating Budget
Within each department category is a hierarchy of what constitutes the operating budget. This
hierarchy, which is detailed below provides a basis for how programs are structured and service
is delivered into the community.
Goal — A goal represents a long-term condition or end result. It describes a vision of philosophy
about major social and environmental concerns of the community.
Significant Budget Changes — A significant budget change represents a major departure from
historical practice or treatment of a program or line item within a department’s budget.
Action Plan — An action plan qualitatively or quantitatively identifies the service to be
provided. Action plans are specific in nature and directly correlate to achieving the results of the
department or division goal.
Service Level Indicators — The service level indicators describe in specific and measurable
terms the results a program (within a particular division) is expected to achieve within a given
time frame. Service level indicators are derived from the action plan.
PACKET PAGE: 125
AGENDA ITEM 3A.7
24438.00000\8508905.6 -49-
Expenditure Line Items — Within each department are divisions and programs. At these levels is
a summary of costs by personnel, general operating and capital expenditures.
The Budget Process
The budget process begins with the development of the budget calendar, which provides those
involved with the budget a time frame for planning and preparing their budgets. Generally, by
the beginning of the year, the City Council has determined the budget priorities.
A budget kickoff meeting is held where departments are provided with information to complete
their individual budgets, which are submitted to the City Manager. Departments then prepare
budget request to achieve the policy direction provided by the City Council. After the budget is
submitted to the City Manager, the City Manager and appropriate staff conduct review and
analysis of each department’s budget. Recommendations are presented and discussed with each
department in one or more departmental review meetings. The Finance Director compiles the
results of the departmental review and City Manager recommendations in a final document
prepared for the City Manager and City Council.
Upon approval of City Manager, the proposed budget is finalized and is presented to the City
Council in May. Comments are received from the Council and the general public during budget
workshops and a public hearing. Upon completion of the hearing and any resulting
modifications to the budget it is adopted by resolution of the Council. Also, adopted by
resolution is the City’s annual appropriations limit, in conformance with California Constitution
Article XlllB, and annual changes to fees and charges for city services.
Often the City receives requests for funds from groups and organizations in the community. Any
requests for consideration should be address to the Mayor and Council and submitted to the City
Clerk’s office, preferably in advance of the adoption of the budget by Council. All requests
should include a letter of introduction, a description of the program, some background material, a
copy of the financial statements and or budget, and a description of how the funds are to be used.
As a general policy, funds are only appropriated for one time capital items rather than for
ongoing operating expenses. All requests will be reviewed by staff, who will make
recommendations to the City Council. Requests are reviewed based upon the availability of
funds and benefit to the community.
Budget Amendments
During the course of the fiscal year, there may be occasions when the budget will need additional
funds for a specific item or project that was unforeseen at the time the budget was prepared.
Requests for additional appropriations are presented to the City Council along with an
appropriation of matching revenues for approval.
The budget is then formally amended mid-year and year-end. All of the approved additional
appropriations are added to the adopted budget and presented to the City Council for adoption by
Council Resolution.
PACKET PAGE: 126
AGENDA ITEM 3A.7
24438.00000\8508905.6 -50-
THE BROWN ACT
I. INTRODUCTION
A. Development
The Brown Act developed as the result of a 1951 San Francisco Chronicle investigation into the
plethora of secret meetings despite diverse codes and statutes prohibiting them. The League of
California Cities drafted the original act which was later promoted through the legislature by
Modesto Assemblyman Ralph M. Brown. The bill was signed into law in 1953.
B. Purpose
The purpose is to ensure that almost all aspects of the decision-making process of legislative
bodies of local agencies be conducted in public and open to public scrutiny.
II. BROWN ACT
A. Application of Act
1. The Act applies to “local agencies”, generally defined as political
subdivisions and districts including, for example, general law and
chartered cities, counties, school districts and other special districts.
2. The Act applies to “legislative bodies”, generally defined as (a) governing
bodies of local agencies, (b) commissions and committees of local
agencies, either permanent or temporary, either decision-making or
advisory, created by formal action of the City Council and (c) boards,
commissions and committees governing a private entity created by an
elected City Council, or receiving funds from a City and on whose
governing body sits a member of the City Council.
3. The Act applies to persons elected to serve on the City Council, even prior
to assuming office.
4. The Act applies to “meetings”, defined generally as a congregation of a
majority of City Council members to hear or discuss items within that
agency’s subject matter jurisdiction, or the use of communication or
intermediaries employed by a majority of City Council members
(including through the use of phones, e-mails, texts, or other
communication devices). The Act generally does not apply to social
events, seminars and educational conferences, or community organized
meetings, at which agency business is not discussed by a majority of
agency members.
5. The Act does NOT apply to (a) an advisory subcommittee composed
solely of less than a quorum of the City Council unless it is a standing
subcommittee that has continuing subject matter jurisdiction or a meeting
PACKET PAGE: 127
AGENDA ITEM 3A.7
24438.00000\8508905.6 -51-
schedule fixed by formal action of the City Council; (b) mere attendance
at a standing subcommittee meeting, if only as an observer; or (c)
attendance at open and noticed meetings of other local agencies.
B. Agency Posting and Notice Requirements
The Act requires posting an agenda accessible to the public at least seventy-two (72) hours in
advance of a regular meeting, with a brief general description (generally need not exceed 20
words) of each item of business to be transacted or discussed in both open and closed session.
For special meetings, written notice may be provided by any means at least 24 hours in advance
to members of the City Council and to anyone who has requested notice in writing. The notice
must specify the time and place of the meeting and the business to be discussed. Notice may be
waived in writing delivered to the secretary before the meeting.
No action or discussion is allowed for any item not listed on the agenda (except for brief
response to persons exercising public comment rights at meeting).
Exceptions:
1. Adding an item by a majority vote determining an “emergency” exists
(i.e., work stoppage or crippling disaster impairing the public’s health and
safety).
2. Adding an item by 2/3 vote of those present determining a need to take
immediate action and that the need for action came to the attention of the
agency subsequent to posting the agenda.
3. An item was earlier posted pursuant to the seventy-two (72) hour
requirement, but the agenda item has been continued to a subsequent
meeting within five (5) calendar days of the original meeting.
The Brown Act also provides for extra-short noticing requirements for “emergency” and “dire
emergency” situations.
An “emergency situation” is a work stoppage, crippling activity, or other activity that severely
impairs public health, safety, or both, as determined by a majority of the members of the City
Council.
A “dire emergency” is a crippling disaster, mass destruction, terrorist act, or threatened terrorist
activity that poses peril so immediate and significant that requiring the City Council to provide
one-hour notice before holding an emergency meeting may endanger the public health, safety, or
both, as determined by a majority of the members of the City Council.
In the case of an “emergency” situation involving matters upon which prompt action is necessary
due to the disruption or threatened disruption of public facilities, the City Council may hold an
emergency meeting, without complying with either the 24-hour notice or posting requirement for
“special” meetings. However, each local newspaper of general circulation and radio or
PACKET PAGE: 128
AGENDA ITEM 3A.7
24438.00000\8508905.6 -52-
television station that has requested notice of special meetings must be notified by the Mayor or
designee one hour prior to the emergency meeting
In the case of a “dire emergency” the 24-hour notice/posting requirements do not apply, but each
local newspaper of general circulation and radio or television station that has requested notice of
special meetings must be notified by the Mayor or designee at or near the time that the Mayor or
designee notifies the City Council Members of the of the emergency meeting.
The notice must be given by telephone and all telephone numbers provided in the most recent
request of a newspaper or station for notification of special meetings shall be exhausted. In the
event telephone services are not functioning, the notice requirements of this will be deemed
waived, and the City Council, or designee of the City Council, shall notify those newspapers,
radio stations, or television stations of the fact of the holding of the meeting, the purpose of the
meeting, and any action taken at the meeting as soon after the meeting as possible.
C. Opportunity for Public to Speak
Every agenda must provide an opportunity for members of the public to address the City Council
on items of interest to the public, before or during the City Council’s consideration of that item,
or concerning items not on the agenda that are within the subject matter jurisdiction of the City
Council (exception: need not allow public to speak if an item was previously considered at a
public hearing by a subcommittee composed exclusively of members of the City Council). The
City Council may adopt regulations limiting the total amount of time allocated for public
testimony on particular issues and for each speaker. The City Council may order the meeting
room cleared (except nondisruptive news media) of persons willfully interrupting the orderly
conduct of the meeting.
III. SOME EXCEPTIONS TO PUBLIC SESSION REQUIREMENTS (CLOSED
SESSIONS)
A. Real Property Transactions: The City Council may go into closed session with its
negotiator prior to the purchase, sale, exchange or lease of real property to give instructions to its
negotiator regarding the price and terms of payments for purchase, sale, exchange or lease.
Prior to the closed session, the City must identify the real property and persons
with whom its negotiator may negotiate.
B. Pending Litigation: The City Council may discuss in closed session “pending
litigation” if:
1. There is litigation pending involving the City; or
2. There is “significant exposure to litigation” against the City; or
3. The City has decided or is deciding whether to initiate litigation.
Prior to the closed session, the City must state on the agenda or publicly the statutory basis under
the Act for discussing pending litigation in closed session.
PACKET PAGE: 129
AGENDA ITEM 3A.7
24438.00000\8508905.6 -53-
C. “Personnel”: The City Council may go into closed session to consider the
appointment, employment, evaluation of performance or dismissal of a public employee or to
hear complaints or charges brought against such employee unless such employee requests a
public session. For “complaints or charges” brought against an employee, the employee must be
given 24 hour advanced notice of the right to have the matter handled in open session. Closed
session may NOT be held to discuss the agency’s available funds, funding priorities or budget.
“Employee” does not include elected officials. “Employee”, however, does include officers and
independent contractors who act as officers or employees.
D. Salaries and Compensation of Employees: The City Council may discuss in
closed session with its designated representatives salaries, salary schedules, or compensation in
the form of benefits of its represented and unrepresented employees. These closed sessions can
take place prior to and during consultations and discussions with representatives of employee
organizations and unrepresented employees. The same definition of “employee” and prohibition
against funding or budget discussion applies as set forth in Section Ill. C. - “Personnel”, above.
E. Joint Powers Insurance Authorities; Multi-jurisdictional Drug Law Enforcement
Agencies: Insurance claims pertaining to tort or workers compensation liability and drug law
enforcement criminal investigations may be discussed in closed session by applicable agencies.
F. Announcement of Action Taken in Closed Sessions: The City Council must
publicly report any action taken in closed session and the vote of every member as follows:
1. Approval of a real estate agreement must be reported at the public meeting
during which the closed session is held or, if final approval of the
agreement rests subsequently with another party, the City must disclose
approval of the agreement upon inquiry by any person subsequent to final
approval of the agreement by the other party.
2. Approval to defend litigation, or to seek or refrain from seeking appellate
review, or to enter litigation as amicus curiae must be reported in open
session at the public meeting during which the closed session is held.
3. Approval of a settlement of pending litigation must be reported in open
session at the public meeting during which the closed session is held,
provided that if final approval of settlement rests subsequently with
another party, then the disclosure of approval shall be given following
inquiry by any person after the settlement becomes final.
4. Action taken to appoint, employ, dismiss, accept the resignation of or
otherwise affect the employment status of a public employee shall be
reported at the public meeting during which the closed session is held
(except that the report of a dismissal or of the non- renewal of an
employment contract shall be deferred until the first public meeting
following the exhaustion of administrative remedies, if any).
5. Approval of an agreement concluding labor negotiations must be reported
after the agreement is final and has been accepted by the other party.
PACKET PAGE: 130
AGENDA ITEM 3A.7
24438.00000\8508905.6 -54-
The City Council must provide copies of contracts, settlement agreements or other documents
that were approved in closed session to any person who submits a written request for them to the
City Council within twenty-four (24) hours of posting of the agenda (and to any person who has
made a standing request for all documentation as part of a request for annual notice of meetings).
G. The City may by ordinance or resolution designate a clerk or other employee to
attend each closed session and keep in a minute book a record of topics discussed and decisions
made in closed session. The minute book must remain confidential and may, but need not,
consist of a recording of the closed session.
IV. MISCELLANEOUS PROVISIONS
A. Location of Meetings. All meetings of the City Council must be held within the
boundaries of the territory over which the City exercises jurisdiction, subject to limited
exceptions. However, teleconferencing is now allowed, subject to certain restrictions. The City
Council may not conduct a meeting in any facility that prohibits admittance of any person on the
basis race, religious creed, color, national origin, ancestry, or sex, or which is inaccessible to
disabled persons, or where members of the public may not be present without making a payment
or purchase.
B. Form of Open Deliberation. The City Council is prohibited from taking any action
by secret ballot. The City Council may use video or audio teleconferencing for the benefit of the
public and the City Council to receive public comment or testimony and to deliberate. If
teleconferencing is used, the City Council must post agendas at all teleconference locations, and
each teleconference location must be identified in the notice and the agenda.
C. Openness of Meetings. A member of the public may not be required to register
his/her name or provide other information as a condition to attendance. Any person attending a
public meeting has the right to record the proceedings with an audio or video tape recorder or a
still or motion picture camera unless the City Council reasonably finds that such recording
cannot continue without noise, illumination or obstruction of view that would constitute a
persistent disruption of the proceedings. The City Council may not prohibit or restrict the
broadcast of its proceedings unless it makes similar findings. Any tape or film record of a public
meeting made by the City is subject to inspection under the California Public Records Act, but
may be destroyed thirty (30) days after the taping or recording.
D. New or Increased General Tax or Assessment. The Act provides that before
adopting a new or increased general tax or assessment, the City Council must conduct at least
one public meeting at which public testimony is permitted, in addition to the noticed public
hearing at which the City Council proposes to enact or increase a general tax or assessment.
V. PENALTIES AND REMEDIES
A. Each member of the City Council who attends a meeting of such City Council
where action is taken in violation of any provision of the Act, with wrongful intent to deprive the
public of information to which it is entitled under the Act, is guilty of a misdemeanor.
PACKET PAGE: 131
AGENDA ITEM 3A.7
24438.00000\8508905.6 -55-
B. Violations of the Act may be prevented or stopped by mandamus, injunction or
declaratory relief.
C. Actions by the City Council which are not in substantial compliance with the
open meeting, notice or agenda requirements may be invalidated (exceptions to invalidation
generally pertain to actions approving bonds or contracts, or relating to the collection of taxes).
D. Court costs and reasonable attorney fees are recoverable in an action agency and
shall not become a personal liability of any public officer or employee of the City.
E. Unauthorized disclosure of confidential information out of closed session may
result in one or more of the following:
· Injunctive relief to prevent the disclosure of confidential information.
· Disciplinary action against an employee who has willfully disclosed
confidential information.
· Referral of a City Councilmember who has willfully disclosed confidential
information to the grand jury.
PACKET PAGE: 132
AGENDA ITEM 3A.7
24438.00000\8508905.6 -56-
CONFLICT OF INTEREST LAWS
I. POLITICAL REFORM ACT
The Political Reform Act (“Act”) was enacted by initiative measure in 1974. (Government Code
§ 81000 et seq.)
Legislative Purpose: “Public officials, whether elected or appointed, should perform their duties
in an impartial manner, free from bias caused by their own financial interests or the financial
interests of persons who have supported them.” (§ 81001(b).)
The Fair Political Practices Commission (“FPPC”) is the agency primarily charged with the
responsibility of advising officials and the public and enforcing the conflict of interest provisions
of the Act. The FPPC has adopted regulations interpreting and implementing the Act’s
provisions. (2 Cal. Code of Regs. § 18000 et seq.)
The Basic Prohibition: “No public official at any level of State or local government shall make,
participate in making or in any way attempt to use his official position to influence a
governmental decision in which he knows or has reason to know he has a financial interest.”
(Government Code § 87100.)
There are four basic questions that a public official should ask in determining whether or not
they have a conflict of interest:
1. Is the official making, participating in, or using his or her “official
position” to influence a governmental decision?
2. Is it reasonably foreseeable that the decision will affect the public
official’s economic interest?
3. Will the effect of the decision on the official’s economic interest be
material?
4. Will the effect of the decision on the official’s economic interest be
different than the effect on the public in general?
If the answer to all of the above questions is “yes,” then the official has a conflict of interest and
must disqualify himself both from participating in and making the decision.
A. Making, Participating in, or Using One’s Official Position to Influence a
Governmental Decision
Making a governmental decision includes voting or participating in a decision regarding
ordinances, regulations or resolutions; contract awards, purchases or leases; hiring, firing or
other personnel actions; or any other decision coming before a public official.
Responding to comments, taking part in discussions or making recommendations regarding any
of the above topics or decisions is also considered participation in a governmental decision.
PACKET PAGE: 133
AGENDA ITEM 3A.7
24438.00000\8508905.6 -57-
B. The Decision Will Foreseeably Affect the Official’s Economic Interest
An effect on one’s economic interest is foreseeable when there is a “substantial likelihood” that
it will result in a financial gain or loss to the public official.
Probably a conflict if the governmental decision involves any of the following:
1. A direct or indirect interest in real property valued at $2,000 or more.
2. A direct or indirect investment of $2,000 or more in a business.
3. A source of income of $500 or more within the last 12 months.
4. Gifts of $440 or more within the last 12 months.
Note: mortgages, options to buy and leasehold interests are all considered to be interests in real
property, although month-to-month leases are not.
C. The Effect of the Official’s Economic Interest is Distinguishable from the
Effect on the Public Generally
Will the decision cost or earn the official, the official’s spouse or dependent children money or
affect the official’s other economic interests in a way that is different from the general public?
The official does not have a conflict of interest if the effect of the decision on his economic
interest is no different from its effect on most other persons (the “public generally”). For
example, a decision to impose a tax will affect the official no differently than any other member
of the general public. By contrast, a decision concerning a zoning variance for the official’s
business or home does have an effect on the official that is different from that on the general
public and therefore would be considered a conflict of interest for the official. (This exception is
very narrowly construed by the FPPC.)
To qualify for the “public generally” exception, the decision must affect a “significant segment”
of the public.
D. Legally Required Participation
No alternative source of decision.
Not available to break a tie.
Not available if a quorum can be convened from those not disqualified.
Requirement to disclose the financial interest and the reason there is no alternative source of
decision-making authority.
Requalify the minimum number needed to act, by random method of selection (i.e., drawing
straws).
PACKET PAGE: 134
AGENDA ITEM 3A.7
24438.00000\8508905.6 -58-
E. Violations
Administrative penalty of up to $5,000 per violation.
Injunctive relief.
Misdemeanor criminal sanctions (fine and/or imprisonment), and four- year bar from holding
elective office.
II. GOVERNMENT CODE SECTION 1090
Government Code Section 1090 prohibits public officers or employees from being financially
interested in any contract made by them in their official capacity or by any body or board of
which they are members.
Government Code Section 1090 also prohibits public officers or employees from being
purchasers at any sale or vendor of any purchase made by them in their official capacity.
The purpose behind the prohibitions in Section 1090 is to eliminate opportunities that would
prevent officials from exercising loyalty and undivided alliance to the best interests of the public
entity of which they are members.
No actual fraud or dishonesty is necessary for a Section 1090 violation.
Even when the governmental official’s business turns in the lowest bid, a Section 1090 violation
can occur.
Full disclosure will not prevent or cure a Section 1090 violation.
Abstention by the interested public official will not cure a Section 1090 violation.
A Section 1090 violation will occur even if the interested public official abstains from a vote that
would approve the contract, sale, or purchase from the public official’s business.
The consequences of a violation of Government Code Section 1090 can be criminal and civil.
There are exceptions under Government Code Section 1090 (e.g. “remote interests” under
Government Code Section 1091 and “noninterests” under Government Code Section 1091.5).
For specific questions regarding whether an exception may apply to any particular set of facts,
Council Members should contact the City Attorney.
III. REDEVELOPMENT LAW CONFLICT OF INTEREST
City Council members also serve as Directors for the Successor Agency to the San Jacinto
Redevelopment Agency. The California Community Redevelopment Law (“CRL”) has its own
separate conflict of interest rules. No RDA or City officer or employee who in the course of his
or her duties is required to participate in the formulation of, or to approve plans or policies for,
the redevelopment of a project area can legally acquire any interest in any property included
within a project area within the City.
PACKET PAGE: 135
AGENDA ITEM 3A.7
24438.00000\8508905.6 -59-
If any such officer or employee owns or has any direct or indirect financial interest in property
included within a project area, that officer or employee must immediately make a written
disclosure of that financial interest to the agency and the City Council and the disclosure shall be
entered on the minutes of the RDA and the City Council. Failure to make the disclosure
constitutes misconduct in office.
This rule does not prohibit any RDA or City officer or employee from acquiring an interest in
property within the project area for the purpose of participating as an owner or reentering into
business pursuant to the CRL if that officer or employee has owned a substantially equal interest
as that being acquired for the three years immediately preceding the selection of the project area.
Also, a rental agreement or lease of property that meets all of the following conditions is not an
interest in property for purposes of this rule:
The rental or lease agreement contains terms that are substantially equivalent to the terms of a
rental or lease agreement available to any member of the general public for comparable property
in the project area.
The rental or lease agreement includes a provision that prohibits any subletting, sublease, or
other assignment at a rate in excess of the rate in the original rental or lease agreement.
The property that is subject to the rental or lease agreement is used in the pursuit of the principal
business, occupation, or profession of the officer or employee.
The RDA or City officer or employee who obtains the rental or lease agreement immediately
makes a written disclosure of that fact to the RDA and the City Council.
PACKET PAGE: 136
AGENDA ITEM 3A.7
August 5, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Tim Hults, City Manager
SUBJECT: Consider Second Reading of 6.5% Utility Users Tax Ordinance
(Ordinance No. 14-09) and Placement of the Ordinance on the November
4, 2014 Ballot.
RECOMMENDATION:
Staff recommends that the City Council discuss the proposed Utility Users Tax (UUT)
Ordinance/Measure, adopt the Ordinance and the following resolutions to place it on the
November 4, 2014 General Election ballot:
1) Resolution No. 3525, Calling for the Placement of the UUT Measure on the
November 4, 2014 ballot, and Directing the City Attorney to Prepare an
Impartial Analysis of the UUT Measure (with Ordinance No. 14-09 included);
2) Resolution No. 3526, Requesting Riverside County to Consolidate the UUT
Measure with the November 4, 2014 Statewide General Election; and
3) Resolution No. 3527, Setting Rules for the Filing of Arguments For and
Against the UUT Measure.
BACKGROUND:
At its July 15, 2014 meeting, the City Council waived further reading and introduced
Ordinance No. 14-09, which proposes to establish a 6.5% UUT for 10 years in the City,
while exempting low-income seniors, protecting the funds from state raids, and
subjecting the UUT to annual audit and reporting. The vote was 5-0. The July 15 Staff
Report (attached as Exhibit “A”) contains a detailed explanation of the UUT Ordinance
and why it is being proposed to address the City’s financial challenges.
Because the UUT Ordinance proposes a new local general tax, California Proposition
218 requires that it be approved by a majority of San Jacinto voters. Therefore, the
City Council cannot technically “adopt” the UUT Ordinance this evening. In this special
case, if the City Council wishes to move the item forward after “second reading”, it
would adopt the three resolutions listed above to place the UUT Ordinance on the
November 4, 2014 Statewide General Election ballot (attached as Exhibits “B”, “C” and
“D”). The legal deadline to place the UUT Measure on the November 4, 2014 ballot is
Friday, August 8.
PACKET PAGE: 137
AGENDA ITEM 5.1
FISCAL IMPACT:
If approved by the voters, a 6.5% UUT would generate approximately $5 million
annually to the City’s general fund. If the City Council agrees to place the UUT on the
ballot, additional costs of approximately $9,300 would be incurred for payment of the
County election fee. If the measure is adopted, additional costs would be incurred each
year to retain a firm to conduct annual audits and publish the results related thereto. So
far, costs have been incurred for the survey and the development of the UUT ordinance
and related documents. The estimates for such costs are approximately $21,000, not
including legal costs.
ATTACHMENTS:
A. July 15, 2014 City Council Staff Report
B. Ordinance 14-09
C. Resolution No. 3525
D. Resolution No. 3526
E. Resolution No. 3527
PACKET PAGE: 138
AGENDA ITEM 5.1
July 15, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Tim Hults, City Manager
SUBJECT: Authorization to place a Ballot Measure in front of the voters requesting
the consideration of a 6.5% Utility Users Tax
RECOMMENDATION:
Staff recommends that the City Council discuss the proposed Utility Users Tax (UUT)
Measure and, by motion, approve and introduce:
1) Ordinance No. 14-09 Adding Chapter 3.22 to the San Jacinto Municipal Code to
Enact a 6.5% Utility Users Tax Within the City.
BACKGROUND:
The State’s recent multi-billion dollar fiscal crisis and the historical economic recession
have significantly impacted the City’s ability to provide the level of services and
programs that its citizens have traditionally enjoyed. To address multi-billion dollar
budget deficits and meet its own budgetary demands, the State routinely diverts funds
that traditionally go to cities. For example, the State abolished redevelopment which
has resulted in the loss of approximately $3.7 million annually for local projects since
2012. Additionally, in 1992 the State of California found itself in a serious deficit
position and enacted legislation that shifted partial financial responsibility for funding
education to local government. This shift was known as the “educational revenue
augmentation fund” (ERAF) and to this day approximately 40% of the City’s property tax
funds are shifted to the State for this purpose. While the State provided some money
back to the City to partly offset the ERAF shift, less than 20% of the shifted ERAF funds
were ultimately returned to our community.
In addition to State takeaways, virtually every local revenue source in San Jacinto is
generating proceeds well below the levels received prior to the national economic
recession. Projected Fiscal Year (FY) 2013/14 property tax revenue is approximately
$865,000 below FY 2007/08 levels. Projected FY 2013/14 Vehicle License Fee
Revenues are more than $1.56 million below levels received in FY 2007/08.
Development revenues are down more than $1.14 million from FY 2007/08. Overall,
projected FY 2013/14 general fund revenues (ignoring overhead) are more than $5.0
million below such levels in FY 2007/08. Over the past several years, the City
responded to the State takeaways and declining local revenues by eliminating several
full-time employees (23% reduction) and reducing non-critical services.
In order to maintain critical service levels, the City Council has adopted budgets for the
last several years relying on the use of reserve funds. As such, the City’s Reserve
PACKET PAGE: 139
AGENDA ITEM 5.1
Funds have plummeted from a high of approximately $25 million to a projected FY
2013/14 year-end balance of about $12 million. The City Council’s decision to incur
these deficits was made in order to avoid making even deeper cuts in the services and
programs the City provides to its citizens. However, with the City’s Reserve Funds
declining at unprecedented levels, the Council directed staff to explore revenue
enhancement measures up to and including ballot measures. Significant cuts loom if
revenues aren’t increased accordingly. Therefore, staff has explored the enactment of
a Utility Users Tax. A Utility Users Tax (UUT) is a local revenue source that cannot be
taken away by the State.
DISCUSSION:
A UUT can legally be imposed on the use of any utility service within the City including,
but not limited to, electricity, gas, water, sewer, communications and garbage services.
Currently, more than 150 cities in California have UUTs. The UUT is based on a
percentage rate of the utility service bill. UUT rates range from 1% to 11% throughout
the State. The most common rate is 5%, applied against a broad range of utilities.
Between Los Angeles and Orange Counties there are an estimated 59 cities with
established UUT ordinances. In Riverside County, there are 8 cities collecting a UUT,
including Beaumont, Cathedral City, Coachella, Desert Hot Springs, Indio, Moreno
Valley, Palm Springs and Riverside. The rates for these UUTs range from a low of 3%
(Beaumont & Cathedral City) to a high of 7% (Desert Hot Springs).
Article XIIIC of the California Constitution (Proposition 218) requires that any new or
increased local general tax, such as a UUT, be approved by a majority vote of the
electorate. (A two-thirds vote is required for the adoption of a special tax imposed for
special purposes.)
Over the last decade, UUT measures have enjoyed a positive reception at the ballot
box. This is partly explained because voters, when asked, have said a UUT is a more
equitable tax that is applied to all utility users, including renters and businesses.
Furthermore, the UUT is a local tax subject to local control, which addresses voter
concern about funding and protecting critical local services and maintaining their quality
of life.
In June 2014, FM3 conducted a survey of voters to assess potential support for a UUT
Measure, to identify the tax rate at which voters would support a UUT Measure and to
identify and prioritize desired City services. Approximately 300 voters completed the
telephone survey. The results of the survey are contained in the report entitled, “CITY
OF SAN JACINTO BALLOT MEASURE ISSUES SURVEY” which is attached as Exhibit
B to this staff report.
The results of the survey of voters found that 63% of the respondents are likely to
support the UUT at the rate of 6.5%. However, with a survey margin of error of 5.7%,
that level of support could drop to 57.3% or increase to 68.7%. As part of the survey,
voters were asked to provide their opinions on the type of provisions they would like to
include in the Measure. Voters overwhelmingly supported protecting the funds from
PACKET PAGE: 140
AGENDA ITEM 5.1
state raids, ensuring that low-income seniors are exempt from the UUT, requiring no
increase in the tax rate without voter approval, subjecting the UUT to annual audit and
publishing an annual expenditures report, and sunsetting the UUT after 10 years.
Voters also expressed concerns about crime, including drugs and gangs, the lack of
good paying jobs and the local economy. In addition, voters were overwhelming against
reductions in 911 emergency response rates and reductions in police officer, fire fighter
and paramedic staffing levels.
Based upon this public input, City staff and legal counsel have drafted a UUT ordinance
for Council consideration, which is attached as Exhibit A to this staff report. It proposes
a UUT rate of 6.5% on all utilities for a period of ten (10) years, while exempting low-
income seniors from the tax, protecting the funds from state raids, requiring no increase
in the tax rate without voter approval, and subjecting the UUT to annual audit and
publishing of an annual expenditures report. The ordinance also includes the ability to
adjust the rate downward and to exempt additional classes should the Council
determine such a need exists.
Further, the Finance Subcommittee has developed the proposed wording of the ballot
question, should the Council ultimately decide to place the Measure on the ballot. The
following language is proposed:
"San Jacinto City Services Stability Measure. To maintain current police, firefighter and
paramedic service levels, maintain 9-1-1 emergency response times, maintain
operational levels for existing neighborhood fire stations, parks, community buildings
and infrastructure, and create jobs; shall the City of San Jacinto establish a 6.5% Utility
Users Tax for 10 years on utility services within the City, while exempting low-income
seniors, requiring annual audits and allowing no tax rate increase without voter
approval?"
Tonight, City Staff is requesting that the Council introduce the UUT Measure. Since the
UUT Measure requires an ordinance, the “two readings” requirement applies and
tonight would serve as the first reading. If the Council introduces the UUT Measure
tonight, City staff would bring it back for second reading on August 5. At that time, the
Council would make the final decision whether to place the Measure on the ballot for the
November 4, 2014 Statewide General Election and, if so, confirm the ballot question
language. The legal deadline to place the UUT Measure on the November 4, 2014
ballot is Friday, August 8.
Should the UUT be enacted as proposed, projected revenues are estimated to exceed
$5 million annually.
FISCAL IMPACT:
As indicated above, a 6.5% UUT would generate approximately $5 million annually to
the City’s general fund. If the City Council agrees to place the UUT on the ballot,
PACKET PAGE: 141
AGENDA ITEM 5.1
additional costs of approximately $9,300 would be incurred for payment of the County
election fee. If the measure is adopted, additional costs would be incurred each year to
retain a firm to conduct annual audits and publish the results related thereto. So far,
costs have been incurred for the survey and the development of the ordinance. The
estimates for such costs are approximately $21,000.
ATTACHMENTS:
A. Ordinance No. 14-09
B. Results of FM3 Telephone Survey
PACKET PAGE: 142
AGENDA ITEM 5.1
1
STATE OF CALIFORNIA ) ORDINANCE NO. 14-_____
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
MEASURE “____”
AN ORDINANCE OF THE PEOPLE OF THE CITY OF SAN
JACINTO, CALIFORNIA, ADDING CHAPTER 3.22 TO
TITLE 3 OF THE SAN JACINTO MUNICIPAL CODE,
ENACTING A SIX AND ONE-HALF PERCENT (6.5%)
UTILITY USERS TAX WITHIN THE CITY
THE PEOPLE OF THE CITY OF SAN JACINTO, CALIFORNIA, DO ORDAIN
AS FOLLOWS:
SECTION 1. Chapter 3.22 is hereby added to Title 3 of the San Jacinto
Municipal Code, and shall read as follows:
"Chapter 3.22 - UTILITY USERS TAX
Sections:
3.22.010 Purpose.
3.22.020 Definitions.
3.22.030 Communication users tax.
3.22.040 Electricity users tax.
3.22.050 Gas users tax.
3.22.060 Collection of Tax From Service Users Receiving Direct Purchase of
Gas or Electricity.
3.22.070 Water users tax.
3.22.080 Video service users tax.
3.22.090 Sewer service users tax.
3.22.100 Solid Waste Service users tax.
3.22.110 Constitutional, Statutory and Other Exemptions.
3.22.120 Substantial Nexus/Minimum Contacts.
3.22.130 Duty to collect--Procedures.
3.22.140 Filing Return and Payment.
3.22.150 Collection of Penalties.
3.22.160 Deficiency Determination and Assessment – Tax Application Errors.
3.22.170 Administrative Remedy – Non-Paying Services Users.
3.22.180 Actions to Collect.
3.22.190 Additional Powers and Duties of Tax Administrator.
3.22.200 Records.
3.22.210 Refunds.
3.22.220 Appeals.
3.22.230 No Injunction/Writ of Mandate.
3.22.240 Remedies Cumulative.
3.22.250 Notice of Changes to Ordinance.
PACKET PAGE: 143
AGENDA ITEM 5.1
2
3.22.260 Penalties.
3.22.270 Future Amendment to Cited Statute.
3.22.280 Independent Audit of Tax Collection, Exemption, Remittance and
Expenditure.
3.22.290 Amendment or Repeal – Adjustment of Taxing Rate or Methodology.
3.22.300 Sunset of Tax.
3.22.010 Purpose. This chapter is enacted solely to raise revenue for the
general governmental purposes of the City. All of the proceeds from the tax imposed by
this chapter shall be placed in the City's general fund and used for the usual current
expenses of the City.
3.22.020 Definitions. The following words and phrases whenever used in this
chapter shall be construed as defined in this section.
"Ancillary Telecommunications Services" means services that are associated
with or incidental to the provision, use or enjoyment of telecommunications services,
including but not limited to the following services:
1. "Conference bridging service" means an ancillary service that links two or
more participants of an audio or video conference call and may include the
provision of a telephone number. Conference bridging service does not
include the telecommunications services used to reach the conference
bridge.
2. "Detailed telecommunications billing service" means an ancillary service of
separately stating information pertaining to individual calls on a customer’s
billing statement.
3. "Directory assistance" means an ancillary service of providing telephone
number information, and/or address information.
4. "Vertical service" means an ancillary service that is offered in connection
with one or more telecommunications services, which offers advanced
calling features that allow customers to identify callers and to manage
multiple calls and call connections, including conference bridging services.
5. "Voice mail service" means an ancillary service that enables the customer
to store, send or receive recorded messages. Voice mail service does not
include any vertical services that the customer may be required to have in
order to utilize the voice mail service.
"Ancillary Video Services" shall mean services that are associated with or
incidental to the provision or delivery of Video Services, including but not limited to
electronic program guide services, search functions, recording services, interactive
services or other communications services that are associated with or in incidental to
the provision, use or enjoyment of video services.
"Billing Address" means the mailing address of the service user where the
service supplier submits invoices or bills for payment by the service user.
"City" means the city of San Jacinto.
PACKET PAGE: 144
AGENDA ITEM 5.1
3
Except as otherwise provided in this chapter, "Charges" shall include the value of
any other services, credits, property of every kind or nature, or other consideration
provided by the service user in exchange for the utility services being provided.
"Communication Services" means telecommunication services and ancillary
telecommunication services.
"Gas" means natural or manufactured gas or any alternate hydrocarbon fuel
which may be substituted therefor.
"Mobile Telecommunications Service" shall have the same meaning and usage
as set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124) and
the regulations thereunder.
"Month" means a calendar month.
"Municipal Organization" means an organization or association created by statute
or by voluntary action, whose purpose is to facilitate the development and dissemination
of uniform rulings or interpretations regarding the application of utility user taxes to
communications services in the State of California.
"Nonutility supplier" means:
1. A service supplier, other than a supplier of electric distribution services to
all or a significant portion of the city, which generates electricity for sale to
others, and shall include but is not limited to any publicly owned electric
utility, investor-owned utility, co-generator, distributed generation provider,
exempt wholesale generator (15 U.S.C. Section 79z-5a), municipal utility
district, federal power marketing agency, electric rural cooperative, or
other supplier or seller of electricity;
2. An electric service provider (ESP), electricity broker, marketer, aggregator,
pool operator, or other electricity supplier other than a supplier of electric
distribution services to all or a significant portion of the city, which sells or
supplies electricity or supplemental services to electricity users within the
city; or
3. A gas service supplier, aggregator, marketer or broker, other than a
supplier of gas distribution services to all or a significant portion of the city,
which sells or supplies gas or supplemental services to gas users within
the city.
"Person" means, without limitation, any natural individual, firm, trust, common law
trust, estate, partnership of any kind, association, syndicate, club, joint stock company,
joint venture, joint powers authority, limited liability company, corporation (including
foreign, domestic, and non-profit), municipal district or municipal corporation (other than
the city) cooperative, receiver, trustee, guardian, or other representative appointed by
order of any court.
"Place of Primary Use" means the street address representative of where the
customer’s use of the communications service primarily occurs, which must be the
residential street address or the primary business street address of the customer.
PACKET PAGE: 145
AGENDA ITEM 5.1
4
"Post-Paid Telecommunication Service” shall mean the telecommunication
service obtained by making a payment on a telecommunication-by-telecommunication
basis either through the use of a credit card or payment mechanism such as a bank
card, travel card, credit card, or debit card, or by charge made to a service number
which is not associated with the origination or termination of the telecommunication
service.
"Prepaid Telecommunication Service" shall mean the right to access
telecommunication services, which must be paid for in advance and which enables the
origination of telecommunications using an access number or authorization code,
whether manually or electronically dialed, and that is sold in predetermined units or
dollars of which the number declines with use in a known amount.
"Private Telecommunication Service" shall mean a telecommunication service
that entitles the customer to exclusive or priority use of a telecommunications channel
or group of channels between or among termination points, regardless of the manner in
which such channel or channels are connected, and includes switching capacity,
extension lines, stations, and any other associated services that are provided in
connection with the use of such channel or channels. A telecommunications channel is
a physical or virtual path of telecommunications over which signals are transmitted
between or among customer channel termination points (i.e., the location where the
customer either inputs or receives the telecommunications).
"Service Address" means the residential street address or the business street
address of the service user. For a communication or video service user, “service
address” means any of the following:
1. The location of the service user’s communications equipment from which
the communication originates or terminates, regardless of where the
communication is billed or paid; or,
2. If the location in subsection (1) of this definition is unknown (e.g., mobile
telecommunications or VoIP service), the service address means the
location of the service user’s place of primary use, or
3. For prepaid telecommunication service, “service address” means the
location associated with the service number, or, if not known, the point of
sale of the services.
"Service supplier" means any entity or person, including the City, that provides
communication, electric, gas, video, sewer, solid waste or water services to a user of
such services within the City, including any entity or person required to collect or self-
collect and remit a tax as imposed by this chapter, including its billing agent.
"Service user" means a person required to pay a tax imposed by this chapter.
"State" means the state of California.
"Streamlined Sales and Use Tax Agreement" means the multi-state agreement
commonly known and referred to as the Streamlined Sales and Use Tax Agreement,
and as it is amended from time to time.
PACKET PAGE: 146
AGENDA ITEM 5.1
5
"Tax administrator" means the Finance Director of the city of San Jacinto or his
or her designated representative.
"Telecommunications services" means the transmission, conveyance, or routing
of voice, data, audio, video, or any other information or signals to a point, or between or
among points, whatever the technology used. The term “telecommunications services”
includes such transmission, conveyance, or routing in which computer processing
applications are used to act on the form, code or protocol of the content for purposes of
transmission, conveyance or routing without regard to whether such services are
referred to as voice over internet protocol (VoIP) services or are classified by the
Federal Communications Commission as enhanced or value added, and includes video
and/or data services that is functionally integrated with “telecommunication services”.
“Telecommunications services” include, but are not limited to the following services,
regardless of the manner or basis on which such services are calculated or billed:
ancillary telecommunication services; intrastate, interstate, and international
telecommunications services; mobile telecommunications service; prepaid
telecommunication service; post-paid telecommunication service; private
telecommunication service; paging service; 800 service (or any other toll-free numbers
designated by the Federal Communications Commission); 900 service (or any other
similar numbers designated by the Federal Communications Commission for services
whereby subscribers who call in to pre-recorded or live service).
"Telephone corporation," "electrical corporation," "gas corporation" and "water
corporation" shall have the same meanings as defined in Sections 234, 218, 222, and
241, respectively, of the California Public Utilities Code except, "electrical corporation,"
"gas corporation" and "water corporation" shall also be construed to include any
municipality or public agency engaged in the selling or supplying of electricity, gas or
water to a service user.
"Value-Added Non-Voice Data Service" means a service that otherwise meets
the definition of “Telecommunication Services” in which computer processing
applications are used to act on the form, content, code, or protocol of the information or
data primarily for a purpose other than transmission, conveyance or routing.
"Video programming" means those programming services commonly provided to
subscribers by a video service supplier, including, but not limited to, basic services,
premium services, audio services, video games, pay-per-view services, video on
demand, origination programming, or any other similar services, regardless of the
content of such video programming, or the technology used to deliver such services,
and regardless of the manner or basis on which such services are calculated or billed.
"Video service supplier" means any person, company, or service which provides
or sells one or more channels, programs or individual episodes of video programming,
or provides or sells the capability to receive one or more channels, programs or
individual episodes of video programming, including any communications that are
ancillary, necessary or common to the use and enjoyment of the video programming, to
or from a residential or business address in the city, where some fee is paid, whether
directly or included in dues or rental charges for that service, whether or not public
rights-of-way are utilized in the delivery of the video programming or communications. A
"video service supplier" includes, but is not limited to, multichannel video programming
distributors [as defined in 47 U.S.C.A. Section 522(13)], open video systems (OVS)
PACKET PAGE: 147
AGENDA ITEM 5.1
6
suppliers, suppliers of cable television or video program delivery of any kind, be it
through channel or other subscribers or to individual buyers of programs or unique
episodes, master antenna television, satellite master antenna television, multichannel
multipoint distribution services, video services using VoIP (ie: IP-TV and IP-Video,
which provide, among other things, broadcasting and video on demand), direct
broadcast satellite (to the extent allowed by federal law), and other suppliers of video
programming or communications (including two-way communications), whatever their
technology.
"Video services" means video programming and any and all services related to
the providing, recording, delivering, use or enjoyment of video programming (including
origination programming and programming using VoIP, (e.g.: IP-TV and IP-Video)),
using one or more channels by a video service supplier, regardless of the technology
used, to deliver, store or provide such services, and regardless of the manner or basis
on which such services are calculated or billed, including ancillary video services, data
services, telecommunication services, or interactive communication services that are
functionally integrated with video services.
"VoIP" (voice over internet protocol) means the digital process of making and
receiving real-time voice transmissions over any Internet Protocol network.
"800 service" means a “telecommunications service” that allows a caller to dial a
toll-free number without incurring a charge for the call. The service is typically marketed
under the name "800", "855", "866", "877", and "888" toll-free calling, and any
subsequent numbers designated by the Federal Communications Commission.
"900 service" means an inbound toll "telecommunications service" purchased by
a subscriber that allows the subscriber’s customers to call in to the subscriber’s
prerecorded announcement or live service. "900 service" does not include the charge
for: collection services provided by the seller of the "telecommunications services" to
the subscriber, or service or product sold by the subscriber to the subscriber’s
customer. The service is typically marketed under the name "900" service, and any
subsequent numbers designated by the Federal Communications Commission.
3.22.030 Communication users tax.
A. There is imposed a tax upon every person who uses any communication
services in the city, other than a telephone corporation. The tax imposed by this section
shall be at the rate of six and one half percent (6.5%) of the charges made for such
communication services. The tax shall be collected from the service user by the
communication services supplier or its billing agent. There is a rebuttable presumption
that communication services, which services are capable of terminating a call to another
person on the general telephone network, and which are billed to a billing or service
address in the City, are used, in whole or in part, within the City’s boundaries, and such
services are subject to taxation under this chapter. If the billing address of the service
user is different from the service address, the service address of the service user shall
be used.
B. "Mobile Telecommunications Service" shall be sourced in accordance with
the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C.
Section 124). The Tax Administrator may issue and disseminate to communication
PACKET PAGE: 148
AGENDA ITEM 5.1
7
service suppliers, which are subject to the tax collection requirements of this Part,
sourcing rules for the taxation of other communication services, including but not limited
to post-paid telecommunication services, prepaid telecommunication services, and
private telecommunication services, provided that such rules are based upon custom
and common practice that further administrative efficiency and minimize multi-
jurisdictional taxation (e.g., Streamlined Sales and Use Tax Agreement).
C. As used in this section, the term “communications services” shall include,
but shall not be limited to charges for: connection, reconnection, termination,
movement, or change of communications services; late payment fees; detailed billing;
central office and custom calling features (including but not limited to call waiting, call
forwarding, caller identification and three-way calling); voice mail and other messaging
services; directory assistance; access and line charges; universal service charges;
regulatory, administrative and other cost recovery charges; local number portability
charges; and text and instant messaging. “Communication services” shall not include
digital downloads such as, music, ringtones, games, and similar digital products.
D. To prevent actual multijurisdictional taxation of communication services
subject to tax under this section, any service user, upon proof to the tax administrator
that the service user has previously paid the same tax in another state or city on such
communication services, shall be allowed a credit against the tax imposed to the extent
of the amount of such tax legally imposed in such other state or city; provided, however,
the amount of credit shall not exceed the tax owed to the city under this section.
E. The Tax Administrator, from time to time, may issue and disseminate to
communication service suppliers that are subject to the tax collection requirements of
this chapter, an administrative ruling identifying those communication services that are
subject to the tax of subsection (A) above. This administrative ruling shall not impose a
new tax, revise an existing tax methodology as stated in this chapter, or increase an
existing tax except as allowed by California Government Code Section 53750(h)(2), as
it may be amended from time to time.
F. To facilitate the uniform interpretation and application of similar
ordinance provisions in other local jurisdictions in the state, the Tax Administrator may,
prior to issuing and disseminating a sourcing rule or an administrative tax ruling, submit
his or her proposed sourcing rule or administrative tax ruling to a Municipal Organization
for review and comment, according to the rules and procedures of that Municipal
Organization, or its successor organization.
3.22.040 Electricity users tax.
A. There is imposed a tax upon every person other than a water corporation,
electrical corporation, or gas corporation, using electricity in the City. The tax imposed
by this section shall be at the rate of six and one half percent (6.5%) of the charges
made for such electricity, and for any supplemental services or other associated
activities directly related and/or necessary for the provision of electricity to the end-user,
which are provided by a service supplier or non-utility supplier to a service user. The tax
shall be collected from the service user by the service supplier or non-utility service
supplier, or its billing agent.
PACKET PAGE: 149
AGENDA ITEM 5.1
8
B. As used in this section, the term “charges” shall apply to all services,
components and items that are: i) necessary or common to the receipt, use and
enjoyment of electric service; or, ii) currently, or historically have been, included in a
single or bundled rate for electric service by a local distribution company to a class of
retail customers. The term “charges” shall include, but is not limited to, the following
charges:
1. energy charges;
2. distribution and transmission charges;
3. metering charges;
4. stand-by, reserves, firming, ramping, voltage support, regulation,
emergency, or other similar minimum charges for services;
5. customer charges, service establishment or reestablishment charges,
demand charges, fuel or other cost adjustments, power exchange
charges, independent system operator (ISO) charges, stranded
investment or competitive transition charges (CTC), public purpose
program charges, nuclear decommissioning charges, trust transfer
amounts (bond financing charges), franchise fee, franchise surcharge,
annual and monthly charges, and other charges, fees and surcharges
which are necessary to or common for the receipt, use and enjoyment of
electric service; and
6. charges, fees, or surcharges for electricity services or programs, which
are mandated by the California Public Utilities Commission, or the Federal
Energy Regulatory Commission, whether or not such charges, fees, or
surcharges appear on a bundled or line item basis on the customer billing.
C. As used in this section, the term "using electricity" shall not be construed to
mean the storage of such electricity by a person in a battery owned or possessed by
him or her for use in an automobile or other machinery or device apart from the
premises upon which the electricity was received; provided, however, that the term shall
include the receiving of such electricity for the purpose of using it in the charging of
batteries; nor shall the term include electricity used and consumed by an electric public
utility; nor shall the term include the mere receiving of such electricity by an electric
public utility or governmental agency at a point within the City for resale; or the use of
such electricity in the production or distribution of water by a public utility or a
governmental agency.
D. The tax on electricity provided by self-production or by a non-utility supplier or
an electric utility not under the jurisdiction of this Chapter shall be collected and remitted
in the manner set forth in Section 3.22.060. All other taxes on charges for electricity
imposed by this section shall be collected from the service user by the electric service
supplier or its billing agent. The amount of the tax collected in one month shall be
remitted to the Tax Administrator on or before the twentieth (20th) day of the following
month or, at the option of the person required to collect or remit the tax, such person
shall remit an estimated amount of the tax measured by the tax billed in the previous
month or upon the payment pattern of the service user, which must be received by the
Tax Administrator on or before the twentieth (20th) day of the following month, provided
that the service user shall submit an adjusted payment or request for credit, as
appropriate, within sixty (60) calendar days following each calendar quarter. The credit,
if approved by the Tax Administrator, may be applied against any subsequent tax bill
that becomes due.
PACKET PAGE: 150
AGENDA ITEM 5.1
9
3.22.050 Gas users tax.
A. There is imposed a tax upon every person, other than a water corporation,
electrical corporation, or gas corporation, using gas in the City, which is transported
through a pipeline distribution system or by mobile transport. The tax imposed by this
section shall be at the rate of six and one half percent (6.5%) of the charges made for
such gas, including all services related to the storage, transportation, and delivery of
such gas, and shall apply to all uses of gas, including but not limited to heating,
electricity generation, or the use of gas as a component of a manufactured product.
B. As used in this section, the term “charges” shall apply to all services,
components and items for gas service that are: i) necessary or common to the receipt,
use and enjoyment of gas service; or, ii) currently, or historically have been, included in
a single or bundled rate for gas service by a local distribution company to a class of
retail customers. The term “charges” shall include, but is not limited to, the following
charges:
1. the commodity charges for purchased gas, or the cost of gas owned by
the service user (including the actual costs attributed to drilling,
production, lifting, storage, gathering, trunkline, pipeline, and other
operating costs associated with the production and delivery of such gas),
which is delivered through a gas pipeline distribution system or by mobile
transport;
2. gas transportation charges (including interstate charges to the extent not
included in commodity charges);
3. storage charges; provided, however, that the service supplier shall not be
required to apply the tax to any charges for gas storage services when the
service supplier cannot, as a practical matter, determine the jurisdiction
where such stored gas is ultimately used; but it shall be the obligation of
the service user to self-collect the amount of tax not applied to any charge
for gas storage by the service supplier and to remit the tax to the
appropriate jurisdiction;
4. capacity or demand charges, service establishment or reestablishment
charges, administrative charges, marketing charges, transition charges,
customer charges, minimum charges, annual and monthly charges, and
any other charges which are necessary or common to the receipt, use and
enjoyment of gas service; and
5. charges, fees, or surcharges for gas services or programs, which are
mandated by the California Public Utilities Commission or the Federal
Energy Regulatory Commission, whether or not such charges, fees, or
surcharges appear on a bundled or line item basis on the customer billing.
C. The following shall be excluded from the base on which the tax imposed in
this section is computed:
1. Charges made for natural gas which is to be resold and delivered through
mains and pipes;
2. Charges made for natural gas sold for use in the generation of electrical
energy or for the production or distribution of water by a public utility or
governmental agency;
3. Charges made by a gas utility for gas used and consumed in the conduct
of business of gas public utilities;
PACKET PAGE: 151
AGENDA ITEM 5.1
10
4. Charges made for gas used in the propulsion of motor vehicles, as that
phrase is defined in the vehicle code of the state, utilizing natural gas;
and,
5. Charges made for gas used by a nonutility supplier to generate electrical
energy for its own use or for sale to others provided the electricity so
generated is subject to the tax in accordance with Section 3.22.060 of this
chapter.
D. The tax on gas provided by self-production or by a non-utility supplier not
under the jurisdiction of this Chapter shall be collected and remitted in the manner set
forth in Section 3.22.060. All other taxes on charges for gas imposed by this section
shall be collected from the service user by the gas service supplier or its billing agent.
The amount of tax collected in one month shall be remitted to the Tax Administrator,
and must be received by the Tax Administrator on or before the twentieth (20th) day of
the following month; or, at the option of the person required to collect or remit the tax,
such person shall remit an estimated amount of tax measured by the tax billed in the
previous month or upon the payment pattern of the service user, which must be
received by the Tax Administrator on or before the twentieth (20th) day of the following
month, provided that the service user shall submit an adjusted payment or request for
credit, as appropriate, within sixty (60) calendar days following each calendar quarter.
The credit, if approved by the Tax Administrator, may be applied against any
subsequent tax bill that becomes due.
3.22.060 Collection of Tax from Service Users Receiving Direct Purchase of Gas or
Electricity.
A. Any service user subject to the tax imposed by Sections 3.22.040 or
3.22.050, hereof, which produces gas or electricity for self-use, or which receives gas or
electricity, including any related supplemental services, directly from a non-utility
supplier not under the jurisdiction of this chapter, or which otherwise is not having the
full tax due on the use of gas or electricity in the City that is directly billed and collected
by the service supplier or its billing agent, shall report said fact to the Tax Administrator
and shall remit the tax due directly to the Tax Administrator within thirty (30) calendar
days of such use. In lieu of paying said actual tax, the service user may, at its option,
remit to the Tax Administrator within thirty (30) calendar days of such use an estimated
amount of tax measured by the tax billed in the previous month, or upon the pattern
payment of similar customers of the service supplier using similar amounts of gas or
electricity, provided that the service user shall submit an adjusted payment or request
for credit, as appropriate, within sixty (60) calendar days following each calendar
quarter. The credit, if approved by the Tax Administrator, may be applied against any
subsequent tax bill that becomes due.
B. The Tax Administrator may require said service user to identify its non-utility
supplier and provide, subject to audit, invoices, books of account, or other satisfactory
evidence documenting the quantity of gas or electricity used and the cost or price
thereof. If the service user is unable to provide such satisfactory evidence, or, if the
administrative cost of calculating the tax, in the opinion of the City, is excessive, the City
may determine the tax by applying the tax rate to the equivalent charges the service
user would have incurred if the gas or electricity used had been provided by the service
supplier which is the primary supplier of gas or electricity.
PACKET PAGE: 152
AGENDA ITEM 5.1
11
3.22.070 Water users tax.
A. There is imposed a tax upon every person, other than a water corporation,
electrical corporation, or gas corporation, using water in the City which is transported
and delivered through a pipeline distribution system. The tax imposed by this section
shall be at the rate of six and one half percent (6.5%) of the charges made for such
water and shall be collected from the service user by the water service supplier, or its
billing agent.
B. As used in this section, the term “charges” shall apply to all services,
components and items that are: i) necessary for or common to the receipt, use or
enjoyment of water service; or, ii) currently are or historically have been included in a
single or bundled rate for water service by a local distribution company to a class of
retail customers. The term “charges” shall include, but is not limited to, the following
charges:
1. water commodity charges (potable and non-potable);
2. distribution or transmission charges;
3. metering charges;
4. customer charges, late charges, service establishment or reestablishment
charges, franchise fees, franchise surcharges, annual and monthly
charges, and other charges, fees and surcharges which are necessary for
or common to the receipt, use or enjoyment of water service; and,
5. charges, fees, or surcharges for water services or programs, which are
mandated by a water district or a state or federal agency, whether or not
such charges, fees, or surcharges appear on a bundled or line item basis
on the customer billing.
C. There shall be excluded from the base on which the tax imposed in this
section computed charges made for water which is to be resold and delivered through a
pipeline distribution system; and charges made by a municipal water department, public
utility or a county or municipal water district for water used and consumed by such
department, utility or district in the conduct of the business of such department, utility or
district.
D. The tax on water service imposed by this section shall be collected from the
service user by the water service supplier or its billing agent. The amount of tax
collected in one (1) month shall be remitted to the Tax Administrator, and must be
received by the Tax Administrator on or before the twentieth (20th) calendar day of the
following month.
3.22.080. Video service users tax.
A. There is imposed a tax upon every person using video services in the city from
a video service supplier. The tax imposed by this section shall be at the rate of six and
one half percent (6.5%) of the charges made for such video services. There is a
rebuttable presumption that video services which are billed to a billing or service
address in the city are used, in whole or in part, within the City’s boundaries, and such
services are subject to taxation under this section. The tax shall be collected from the
service user by the video service supplier or its billing agent.
PACKET PAGE: 153
AGENDA ITEM 5.1
12
B. The tax administrator may issue and disseminate to video service suppliers
which are subject to the tax collection requirements of this section, an administrative
ruling identifying those video services, or charges therefor, that are subject to or not
subject to the tax of subsection (A) above. This administrative ruling shall not impose a
new tax, revise an existing tax methodology as stated in this chapter, or increase an
existing tax except as allowed by California Government Code Section 53750(h)(2), as it
may be amended from time to time.
C. As used in this section, the term "charges" shall include, but not be limited
to:
1. regulatory fees and surcharges, franchise fees and access fees (PEG);
2. initial installation of equipment necessary for provision and receipt of video
services;
3. late fees, collection fees, bad debt recoveries, and return check fees;
4. activation fees, reactivation fees, and reconnection fees;
5. video services;
6. equipment leases (e.g. remote, recording and/or search devices;
converters); and
7. service calls, service protection plans, name changes, changes or
services, and special services.
D. The tax imposed in this section shall be collected from the service user by
the video service supplier, its billing agent, or a reseller of such services. In the case of
video service, the service user shall be deemed to be the purchaser of the bulk video
service (e.g. an apartment owner), unless such service is resold to individual users, in
which case the service user shall be the ultimate purchaser of the video service. The
amount of tax collected in one month shall be remitted to, and received by, the tax
administrator on or before the twentieth (20th) calendar day of the following month.
3.22.090 Sewer service users tax.
A. There is imposed a tax upon every person in the City using sewer service in
the City. The tax imposed by this section shall be at the rate of six and one half percent
(6.5%) of the charges made for such sewer service and shall be paid by the person
paying for such sewer services.
B. As used in this section, the term “charges” shall apply to all services,
components and items that are: i) necessary for or common to the receipt, use or
enjoyment of sewer service; or ii) currently are or historically have been included in a
single or bundled rate for sewer service to retail customers. The term “charges” shall
include, but is not limited to, the following charges: customer charges, late charges,
service establishment or reestablishment charges, annual and monthly charges, and
other charges, fees and surcharges which are necessary for or common to the receipt,
use or enjoyment of sewer service; and charges, fees, or surcharges for sewer services
or programs which are mandated by the city, a state or federal agency, whether or not
such charges, fees, or surcharges appear on a bundled or line-item basis on the
customer billing.
C. The tax on sewer service imposed by this section shall be collected from the
service user by the sewer service supplier or its billing agent. The amount of tax
collected in one month shall be remitted to the tax administrator, and must be received
PACKET PAGE: 154
AGENDA ITEM 5.1
13
by the tax administrator on or before the twentieth (20th) calendar day of the following
month.
3.22.100 Solid Waste service users tax.
A. There is imposed a tax upon every person in the City receiving solid waste
collection, recycling and/or disposal services from the city or any solid waste hauler
franchised by the city. There is also imposed a tax upon every person in the city that
delivers solid waste directly to a transfer station or disposes of solid waste at any city-
owned or city-contracted recycling facility or landfill. The tax imposed by this section
shall be at the rate of six and one half percent (6.5%) of the charges made for such
service and shall be paid by the person paying for such solid waste service.
B. As used in this section, the term “charges” shall apply to all services,
components and items that are: i) necessary for or common to the receipt, use or
enjoyment of solid waste collection, recycling and/or disposal services; or ii) currently
are or historically have been included in a single or bundled rate for solid waste
collection, recycling and/or disposal services to retail customers. The term “charges”
shall include, but is not limited to, the following charges: customer charges, late
charges, service establishment or reestablishment charges, annual and monthly
charges, and other charges, fees and surcharges which are necessary for or common
to the receipt, use or enjoyment of solid waste collection, recycling and/or disposal
services; and charges, fees, or surcharges for solid waste collection, recycling and/or
disposal services or programs which are mandated by the city, a state or federal
agency, whether or not such charges, fees, or surcharges appear on a bundled or line-
item basis on the customer billing.
C. The tax imposed by this section on every person in the city using solid waste
collection, recycling and/or disposal services shall be collected from the service user by
the service supplier or its billing agent. The amount of tax collected in one month shall
be remitted to the tax administrator, and must be received by the tax administrator on or
before the twentieth (20th) calendar day of the following month.
D. The tax imposed upon every person in the city that delivers solid waste
directly to a transfer station or landfill shall be collected from the service user by the
operator of the transfer station or landfill, provided that the transfer station or landfill
operator shall not collect the tax from any person who shows proof, in a form deemed
satisfactory by the tax administrator, that the person’s place of primary use is outside
the city’s jurisdiction. The amount of tax collected by the transfer station or landfill
operator in one month shall be remitted to the tax administrator, and must be received
by the tax administrator on or before the twentieth (20th) calendar day of the following
month.
3.22.110 Constitutional, Statutory and Other Exemptions.
A. The taxes imposed by this Chapter shall not apply to:
1. Any person or service user if imposition of such tax upon that person or
service user would be in violation of a federal or state statute or the
Constitution of the United States or the Constitution of the State of
California, or otherwise exempted by this Chapter;
2. The City; and
PACKET PAGE: 155
AGENDA ITEM 5.1
14
3. Any household in which a senior aged sixty-two (62) years or older resides
and the total income of the household in which such senior resides is at or
below fifty percent (50%) of the area median income, adjusted for family
size, as determined under the Section 8 Income Limits for Riverside
County as published by the United States Department of Housing and
Urban Development.
B. This chapter shall require the city to levy and collect a utility users tax from
service users for the utility services described herein, except where any such service
user or utility service is made expressly exempt from utility users tax by this chapter.
Notwithstanding the above, the City Council is hereby expressly authorized, by
ordinance or resolution, to establish classes of persons or classes of utility service
otherwise subject to payment of the tax imposed by this chapter, and to suspend the
collection of utility users tax, in whole or in part, from such classes of persons or utility
service, and may, from time to time, repeal or modify any such ordinance or resolution,
provided that no such action shall result in the collection of utility users tax from any
service user in the City for any class of utility service in excess of the maximum rates
and methodology set forth in this chapter.
C. Any service user that is exempt from the tax pursuant to subsection (A), or
from whom the City Council has suspended collection of the tax imposed by this
Chapter pursuant to subsection (B) shall file an application with the Tax Administrator
for said exemption or suspension; provided, however, this requirement shall not apply to
a service user that is a state or federal agency or subdivision with a commonly
recognized name. Said application shall be made upon a form approved by the Tax
Administrator and shall state those facts, declared under penalty of perjury, which
qualify the applicant for an exemption or suspension, and shall include the names of all
utility service suppliers serving that service user. If deemed subject to an exemption or
suspension by the Tax Administrator, such service user shall give the Tax Administrator
timely written notice of any change in utility service suppliers so that the Tax
Administrator can properly notify the new utility service supplier of the service user's tax
exempt or suspended status. A service user that fails to comply with this section shall
not be entitled to a refund of utility users taxes collected and remitted to the Tax
Administrator from such service user as a result of such non-compliance. Upon request
of the Tax Administrator, a service supplier or non-utility supplier, or their billing agents,
shall provide a list of names and addresses of those customers which, according to their
billing records, are deemed exempt or suspended from the payment of utility users tax.
D. The decision of the Tax Administrator may be appealed pursuant to Section
3.22.220 of this Chapter. Filing an application with the Tax Administrator and an appeal
to the City Manager pursuant to Section 3.22.220 of this Chapter is a prerequisite to a
suit thereon.
E. Following application and approval of any exemption or suspension from the
payment of all or any part of the utility users tax by the City, the Tax Administrator shall
prepare a list of the persons exempted or suspended from the payment of such tax by
virtue of this section and shall furnish a copy thereof to each service supplier.
F. Any service user who has been exempted or suspended from the collection of
utility users tax pursuant to this section shall notify the Tax Administrator within ten (10)
calendar days following a change in facts or circumstances which may disqualify said
PACKET PAGE: 156
AGENDA ITEM 5.1
15
service user from receiving such exemption or suspension. It shall be a misdemeanor
for any person to knowingly receive the benefits of an exemption or suspension
provided by this section when the basis for such exemption or suspension does not
exist or ceases to exist.
3.22.120 Substantial Nexus / Minimum Contacts.
A. For purposes of imposing a tax or establishing a duty to collect and remit a
tax under this Chapter, “substantial nexus” and “minimum contacts” shall be construed
broadly in favor of the imposition, collection and/or remittance of the utility users tax to
the fullest extent permitted by state and federal law, and as it may change from time to
time by judicial interpretation or by statutory enactment. A service supplier shall be
deemed to have sufficient activity in the City for tax collection and remittance purposes
if its activities include, but are not limited to, any of the following: maintains or has within
the City, directly or through an agent or subsidiary, a place of business of any nature;
solicits business in the City by employees, independent contractors, resellers, agents or
other representatives; solicits business in the City on a continuous, regular, seasonal or
systematic basis by means of advertising that is broadcast or relayed from a transmitter
with the City or distributed from a location with the City; or advertises in newspapers or
other periodicals printed and published within the City or through materials distributed in
the City by means other than the United States mail; or if there are activities performed
in the city on behalf of the service supplier that are significantly associated with the
service supplier’s ability to establish and maintain a market in the city for the provision
of services that are subject to a tax under this chapter.
B. The City shall make available, upon request, an accurate description of its
jurisdictional boundaries based on street addresses and/or ZIP Plus Four, in an
electronic format. If a service supplier relies upon such information provided by City, it
shall not be responsible for any errors in taxation that may result.
3.22.130 Duty to collect--Procedures.
The duty to collect and remit the taxes imposed by this chapter shall be performed as
follows:
A. The tax shall be collected insofar as practicable at the time and along with the
charges made in accordance with the regular billing practices of the service supplier.
Where the amount paid by a service user to a service supplier is less than the full
amount of the charge and tax which has accrued for the billing period, a proportionate
share of both the charge and the tax shall be deemed to have been paid. In those
cases where a service user has notified the service supplier of refusal to pay the tax
imposed on said charges, Section 3.22.170 shall apply.
B. The duty to collect tax from a service user shall commence with the beginning
of the first full regular billing period applicable to the service user where all charges
normally included in such regular billing are subject to the provisions of this chapter.
Where a person receives more than one billing, one or more being for different periods
than another, the duty to collect shall arise separately for each billing.
PACKET PAGE: 157
AGENDA ITEM 5.1
16
3.22.140 Filing Return and Payment. Each person required by this Chapter to remit a
tax shall file a return to the Tax Administrator, on forms approved by the Tax
Administrator on or before the due date. The full amount of the tax collected shall be
included with the return and filed with the Tax Administrator. The Tax Administrator is
authorized to require such additional information as he/she deems necessary to
determine if the tax is being levied, collected, and remitted in accordance with this
Chapter. Returns are due immediately upon cessation of business for any reason.
Pursuant to Revenue and Tax Code Section 7284.6, the Tax Administrator, and its
agents, shall maintain such filing returns as confidential information exempt from
disclosure provisions of the Public Records Act.
3.22.150 Collection Penalties.
A. Taxes collected from a service user, or self-collected by a service user
subject to Section 3.22.060 of this Chapter, are delinquent if not received by the Tax
Administrator on or before the due date. Should the due date occur on a weekend or
legal holiday, the return must be received by the Tax Administrator on or before the first
regular working day following the weekend or legal holiday. A direct deposit, including
electronic fund transfers and other similar methods of electronically exchanging monies
between financial accounts, made by a service supplier in satisfaction of its obligations
under this subsection shall be considered timely if the transfer is initiated on or before
the due date, and the transfer settles into the City’s account on or before the following
business day. Any tax billed to a service user but not paid to the service supplier shall
not be deemed an obligation of the service supplier unless such tax is thereafter paid to
the service supplier.
B. If any service supplier fails to collect the tax (by failing to properly assess the
tax on one or more services or charges on the service user’s billing) or fails to remit any
collected tax imposed by this chapter to the city within the time required, or if any
service user subject to Section 3.22.060 of this chapter fails to remit any tax due within
the time required, said person shall pay a penalty for such delinquencies at the rate as
set forth by resolution of the City Council of the total tax that is delinquent in the
remittance, and shall pay interest at the rate as set forth by resolution of the City
Council, on the amount of the tax, exclusive of penalties, from the date on which the
remittance first became delinquent, until paid.
C. The Tax Administrator shall have the power to impose additional penalties
upon persons required to collect and/or remit taxes pursuant to the provisions of this
Chapter for fraud or gross negligence in reporting or remitting at the rate as set forth by
resolution of the City Council of the amount of the tax collected and/or required to be
remitted, or as recomputed by the Tax Administrator.
D. For collection purposes only, every penalty imposed and such interest that is
accrued under the provisions of this section shall become a part of the tax herein
required to be paid.
E. Notwithstanding the foregoing, the Tax Administrator may, in his or her
discretion, modify the due dates of this chapter to be consistent with any uniform
standards or procedures that are mutually agreed upon by other public agencies
imposing a utility users tax, or otherwise legally established, to create a central payment
location or mechanism.
PACKET PAGE: 158
AGENDA ITEM 5.1
17
3.22.160 Deficiency Determination and Assessment – Tax Application Errors.
A. The Tax Administrator shall make a deficiency determination if he or she
determines that any person required to collect or self-collect taxes pursuant to the
provisions of this Chapter has failed to collect and remit the proper amount of tax by
improperly or failing to apply the tax to one or more taxable services or charges.
Nothing herein shall require the tax administrator to institute proceedings under this
section if, in the opinion of the tax administrator, the cost of collection or enforcement
likely outweighs the tax benefit.
B. The Tax Administrator shall mail a notice of such deficiency determination to
the person required to pay or remit the tax, which notice shall refer briefly to the amount
of the taxes owed, plus penalties and interest at the rate as set forth by resolution of the
City Council, on the amount of the tax from the date on which the tax should have been
received by the City. Within fourteen (14) calendar days after the date of service of
such notice, the person may request in writing to the Tax Administrator for a hearing on
the matter. If the person fails to request a hearing within the prescribed time period, the
amount of the deficiency determination shall become a final assessment, and shall
immediately be due and owing to the City.
C. If the person requests a hearing, the Tax Administrator shall cause the matter
to be set for hearing, which shall be held within thirty (30) calendar days after receipt of
the written request for hearing. Notice of the time and place of the hearing shall be
mailed by the Tax Administrator to such person at least ten (10) calendar days prior to
the hearing, and, if the Tax Administrator desires said person to produce specific
records at such hearing, such notice may designate the records requested to be
produced.
D. At the time fixed for the hearing, the Tax Administrator shall hear all relevant
testimony and evidence, including that of any other interested parties. At the discretion
of the Tax Administrator, the hearing may be continued from time to time for the
purpose of allowing the presentation of additional evidence. Within a reasonable time
following the conclusion of the hearing, the Tax Administrator shall issue a final
assessment (or non-assessment), thereafter, by confirming, modifying or rejecting the
original deficiency determination, and shall mail a copy of such final assessment to the
person owing the tax. The decision of the Tax Administrator may be appealed pursuant
to Section 3.22.220 of this Chapter. Filing an application with the Tax Administrator and
appeal to the City Manager pursuant to Section 3.22.220 of this Chapter is a
prerequisite to a suit thereon.
E. Payment of the final assessment shall become delinquent if not received by
the Tax Administrator on or before the thirtieth (30th) calendar day following the date of
receipt of the notice of final assessment. The penalty for delinquency shall be at the
rate as set forth by resolution of the City Council on the total amount of the assessment,
along with interest at the rate as set forth by resolution of the City Council, on the
amount of the tax, exclusive of penalties, from the date of delinquency, until paid. The
applicable statute of limitations regarding a claim by the City seeking payment of a tax
assessed under this Section shall commence from the date of delinquency as provided
in this subsection.
PACKET PAGE: 159
AGENDA ITEM 5.1
18
F. All notices under this section may be sent by regular mail, postage prepaid,
and shall be deemed received on the third (3rd) calendar day following the date of
mailing, as established by a proof of mailing.
3.22.170 Administrative Remedy - Non-Paying Service Users.
A. Whenever the Tax Administrator determines that a service user has
deliberately withheld the amount of the tax owed by the service user from the amounts
remitted to a person required to collect the tax, or whenever the Tax Administrator
deems it in the best interest of the City, he or she may relieve such person of the
obligation to collect the taxes due under this Chapter from certain named service users
for specific billing periods. Whenever the service user has failed to pay the amount of
tax owed for a period of two (2) or more billing periods, the service supplier shall be
relieved of the obligation to collect taxes due. The service supplier shall provide the City
with the names and addresses of such service users and the amounts of taxes owed
under the provisions of this Chapter. Nothing herein shall require the tax administrator
to institute proceedings under this section if, in the opinion of the tax administrator, the
cost of collection or enforcement likely outweighs the tax benefit.
B. In addition to the tax owed, the service user shall pay a delinquency penalty
at the rate as set forth by resolution of the City Council of the total tax that is owed, and
shall pay interest at the rate as set forth by resolution of the City Council, on the amount
of the tax, exclusive of penalties, from the due date, until paid.
C. The Tax Administrator shall notify the non-paying service user that the Tax
Administrator has assumed the responsibility to collect the taxes due for the stated
periods and demand payment of such taxes, including penalties and interest. The
notice shall be served on the service user by personal delivery or by deposit of the
notice in the United States mail, postage prepaid, addressed to the service user at the
address to which billing was made by the person required to collect the tax; or, should
the service user have a change of address, to his or her last known address.
D. If the service user fails to remit the tax to the Tax Administrator within thirty
(30) calendar days from the date of the service of the notice upon him or her, the Tax
Administrator may impose an additional penalty of twenty-five percent (15%) of the
amount of the total tax that is owed. The penalty shall become part of the tax herein
required to be paid.
3.22.180 Actions to collect. Any tax required to be paid by a service user under the
provisions of this Chapter shall be deemed a debt owed by the service user to the City.
Any such tax collected from a service user which has not been remitted to the Tax
Administrator shall be deemed a debt owed to the City by the person required to collect
and remit and shall no longer be a debt of the service user. Any person owing money to
the City under the provisions of this Chapter shall be liable to an action brought in the
name of the City for the recovery of such amount, including penalties and interest as
provided for in this Chapter, along with any collection costs incurred by the City as a
result of the person’s noncompliance with this Chapter, including, but not limited to,
reasonable attorneys fees and court costs. Any tax required to be collected by a
service supplier or owed by a service user is an unsecured priority excise tax obligation
under 11 U.S.C. §507(a)(8)(C). Service suppliers who seek to collect charges for
service in bankruptcy proceedings shall also include in any such claim the amount of
taxes due the city for those services, unless the tax administrator determines that such
PACKET PAGE: 160
AGENDA ITEM 5.1
19
duty is in conflict with any federal or state law, rule, or regulation or that such action
would be administratively impractical.
3.22.190 Additional Powers and Duties of Tax Administrator.
A. The Tax Administrator shall have the power and duty, and is hereby directed,
to enforce each and all of the provisions of this Chapter.
B. The Tax Administrator may adopt administrative rules and regulations not
inconsistent with provisions of this Chapter for the purpose of interpreting, clarifying,
carrying out and enforcing the payment, collection and remittance of the taxes herein
imposed. A copy of such administrative rules and regulations shall be on file in the Tax
Administrator's office. To the extent that the tax administrator determines that the tax
imposed under this chapter shall not be collected in full for any period of time from any
particular service supplier or service user, that determination shall be considered an
exercise of the tax administrator’s discretion to settle disputes and shall not constitute a
change in taxing methodology for purposes of Government Code Section 53750 or
otherwise. The tax administrator is not authorized to amend the city’s taxing
methodology for purposes of Government Code Section 53750, and the city does not
waive or abrogate its ability to impose the utility users’ tax in full as a result of
promulgating administrative rulings or entering into agreements.
C. Upon a proper showing of good cause, the Tax Administrator may make
administrative agreements, with appropriate conditions, to vary from the strict
requirements of this Chapter and thereby: (a) conform to the billing procedures of a
particular service supplier (or service user subject to Section 3.22.060 of this Chapter)
so long as said agreements result in the collection of the tax in conformance with the
general purpose and scope of this Chapter; or, (b) to avoid a hardship where the
administrative costs of collection and remittance greatly outweigh the tax benefit. A
copy of each such agreement shall be on file in the Tax Administrator's office, and are
voidable by the Tax Administrator or the City at any time.
D. The Tax Administrator may conduct an audit, to ensure proper compliance
with the requirements of this Chapter, of any person required to collect and/or remit a
tax pursuant to this Chapter. The Tax Administrator shall notify said person of the
initiation of an audit in writing. In the absence of fraud or other intentional misconduct,
the audit period of review shall not exceed a period of three (3) years next preceding the
date of receipt of the written notice by said person from the Tax Administrator. Upon
completion of the audit, the Tax Administrator may make a deficiency determination
pursuant to Section 3.22.160 of this Chapter for all taxes, penalties and interest owed
and not paid, as evidenced by information provided by such person to the Tax
Administrator. If said person is unable or unwilling to provide sufficient records to
enable the Tax Administrator to verify compliance with this Chapter, the Tax
Administrator is authorized to make a reasonable estimate of the deficiency. Said
reasonable estimate shall be entitled to a rebuttable presumption of correctness.
E. Upon receipt of a written request of a taxpayer, and for good cause, the Tax
Administrator may extend the time for filing any statement required pursuant to this
Chapter for a period of not to exceed sixty (60) calendar days, provided that the time for
filing the required statement has not already passed when the request is received. No
penalty for delinquent payment shall accrue by reason of such extension. Interest shall
PACKET PAGE: 161
AGENDA ITEM 5.1
20
accrue during said extension at the rate of three-quarters of one percent (¾%) per
month, prorated for any portion thereof.
F. The Tax Administrator shall determine the eligibility of any person who
asserts a right to exemption or suspension from, or a refund of, the tax imposed by this
Chapter.
G. The Tax Administrator or the City Manager, with the written approval of the
City Attorney, may compromise a claim pursuant to this Chapter where the portion of
the claim proposed to be released is equal to or less than the amount set by ordinance
or resolution of the City Council relating to the settlement of general liability claims
against the City and, with the approval of the City Attorney and the City Council, may
compromise such a claim where the portion proposed to be released is greater than the
amount set by ordinance or resolution of the City Council relating to the settlement of
general liability claims against the City by the Tax Administrator or City Manager.
H. Notwithstanding any provision in this Chapter to the contrary, the Tax
Administrator may waive any penalty or interest imposed upon a person required to
collect and/or remit for failure to collect the tax imposed by this Chapter if the non-
collection occurred in good faith. In determining whether the non-collection was in good
faith, the Tax Administrator shall take into consideration industry practice or other
precedents.
I. The tax administrator may, from time to time, survey the various service
suppliers to identify residential and business customers in the city, and the charges
therefor, including those items that are mandated by state or federal regulatory
agencies as a condition of providing such services. The tax administrator may,
thereafter, issue and disseminate to such service suppliers administrative rulings
identifying those components and items which are subject to the tax. If any nontaxable
charges are bundled with and not separately stated from taxable service charges on the
customer bill or invoice of a service supplier, the combined charge is subject to tax
unless the service supplier identifies, by reasonable and verifiable standards, the
portions of the combined charge that are nontaxable and taxable through the service
supplier's books and records kept in the regular course of business, and in accordance
with generally accepted accounting principles, and not created and maintained for tax
purposes. The service supplier has the burden of proving the proper apportionment of
taxable and non-taxable charges. If the service supplier offers a combination of taxable
and non-taxable services, and the charges are separately stated, then for taxation
purposes, the values assigned the taxable and non-taxable services shall be based on
its books and records kept in the regular course of business and in accordance with
generally accepted accounting principles, and not created and maintained for tax
purposes. The service supplier has the burden of proving the proper valuation of the
taxable and non-taxable services.
3.22.200 Records.
A. It shall be the duty of every person required to collect and/or remit to the City
any tax imposed by this Chapter to keep and preserve, for a period of at least three (3)
years, all records as may be necessary to determine the amount of such tax as he/she
may have been liable for the collection of and remittance to the Tax Administrator,
PACKET PAGE: 162
AGENDA ITEM 5.1
21
which records the Tax Administrator, or the Tax Administrator's designated
representative, shall have the right to inspect at a reasonable time.
B. The City may issue an administrative subpoena to compel a person to deliver,
to the Tax Administrator, copies of all records deemed necessary by the Tax
Administrator to establish compliance with this Chapter, including the delivery of records
in a common electronic format on readily available media if such records are kept
electronically by the person in the usual and ordinary course of business. As an
alternative to delivering the subpoenaed records to the Tax Administrator on or before
the due date provided in the administrative subpoena, such person may provide access
to such records outside the City on or before the due date, provided that such person
shall reimburse the City for all reasonable travel expenses incurred by the City to
inspect those records, including travel, lodging, meals, and other similar expenses, but
excluding the normal salary or hourly wages of those persons designated by the City to
conduct the inspection.
C. The Tax Administrator, or the Tax Administrator's designated representative,
is authorized to execute a non-disclosure agreement approved by the City Attorney to
protect the confidentiality of customer information pursuant to California Revenue and
Tax Code Sections 7284.6 and 7284.7. The Tax Administrator, or the Tax
Administrator's designated representative, may request from a person providing
transportation services of gas or electricity to service users within the City a list of the
names and addresses, and other pertinent information, of its transportation customers
within the City pursuant to Section 6354(e) of the California Public Utilities Code.
D. If a service supplier uses a billing agent or billing aggregator to bill, collect,
and/or remit the tax, the service supplier shall: i) provide to the Tax Administrator the
name, address and telephone number of each billing agent and billing aggregator
currently authorized by the service supplier to bill, collect, and/or remit the tax to the
City; and, ii) upon request of the Tax Administrator, deliver, or effect the delivery of, any
information or records in the possession of such billing agent or billing aggregator that,
in the opinion of the Tax Administrator, is necessary to verify the proper application,
calculation, collection and/or remittance of such tax to the City.
E. If any person subject to record-keeping under this section unreasonably
denies the Tax Administrator, or the Tax Administrator's designated representative,
access to such records, or fails to produce the information requested in an
administrative subpoena within the time specified, then the Tax Administrator may
impose a penalty of five hundred dollars ($500) on such person for each day following:
i) the initial date that the person refuses to provide such access; or, ii) the due date for
production of records as set forth in the administrative subpoena. This penalty shall be
in addition to any other penalty imposed under this Chapter.
3.22.210 Refunds. Whenever the amount of any tax has been overpaid or paid more
than once or has been erroneously or illegally collected or received by the Tax
Administrator under this Chapter, it may be refunded as provided in this section:
A. The Tax Administrator or City Manager may refund any tax that has been
overpaid, paid more than once, or has been erroneously or illegally collected or
received by the Tax Administrator under this Chapter, provided that no refund shall be
paid under the provisions of this section unless the claimant or his or her guardian,
PACKET PAGE: 163
AGENDA ITEM 5.1
22
conservator, executor or administrator has submitted a written claim, under penalty of
perjury, to the Tax Collector. The period for filing a claim for refund shall be one (1)
year from the time the tax was paid or erroneously or illegally collected; provided
however, that in no event shall the period to file such claim expire prior to the shortest
period allowable for filing a tax refund claim under Title 1, Division 3.6, Part 3, Section
911.2 of the California Government Code. Such claim must clearly establish claimant's
right to the refund by written records showing entitlement thereto, and must clearly set
forth the facts and legal theories under which the claimant believes he or she has right
to a refund. Nothing herein shall permit the filing of a refund claim on behalf of a class
or group of taxpayers, unless each member of the class has submitted a written claim
under penalty of perjury as provided by this subsection. Where the amount of any
individual refund claim is in excess of the amount set by ordinance or resolution of the
City Council relating to the settlement of general liability claims against the City by the
Tax Administrator or City Manager, City Council approval shall be required.
B. The filing of a written claim pursuant to Government Code Section 935 is a
prerequisite to any suit thereon. Any action brought against the City pursuant to this
section shall be subject to the provisions of Government Code Sections 945.6 and 946.
C. Notwithstanding the notice provisions of subsection (A), a service supplier
that has collected any amount of tax in excess of the amount of tax imposed by this
Chapter and actually due from a service user (whether due to overpayment or
erroneous or illegal collection of said tax), may refund such amount to the service user,
or credit to charges subsequently payable by the service user to the service supplier,
and claim credit for such overpayment against the amount of tax which is due upon any
other monthly returns to the Tax Administrator, provided such credit is claimed in a
return dated no later than one (1) year from the date of overpayment or erroneous or
illegal collection of said tax. The Tax Administrator shall determine the validity of the
service user’s claim of credit, and the underlying basis for such claim.
D. Notwithstanding the notice provisions of subsection (A), in the event that a
service supplier, or a person required to self-impose a tax imposed by this Chapter,
remits a tax to the City in excess of the amount of tax imposed by this Chapter, said
service supplier, or a person required to self-impose a tax imposed by this Chapter, may
claim credit for such overpayment against the amount of tax which is due upon any
other monthly returns to the Tax Administrator, provided such credit is claimed in a
return dated no later than one (1) year from the date of overpayment of said tax, and
provided that the Finance Director shall first determine the validity of the service user’s
claim of credit, and the underlying basis for such claim.
3.22.220 Appeals.
A. The provisions of this section apply to any decision, deficiency determination,
assessment, or administrative ruling of the Tax Administrator. Any person aggrieved by
any decision, deficiency determination, assessment, or administrative ruling of the Tax
Administrator, shall be required to comply with the appeals procedure of this section.
Compliance with this section shall be a prerequisite to a suit thereon. [See Government
Code Section 935(b).]
B. If any person is aggrieved by any decision, deficiency determination,
assessment, or administrative ruling of the Tax Administrator; he or she may appeal to
PACKET PAGE: 164
AGENDA ITEM 5.1
23
the City Manager by filing a notice of appeal with the City Clerk within fourteen (14)
calendar days of the date of the decision, deficiency determination, assessment, or
administrative ruling of the Tax Administrator which aggrieved the service user or
service supplier.
C. The matter shall be set for hearing no more than thirty (30) calendar days from
the receipt of the appeal. The appellant shall be served with notice of the time and
place of the hearing, as well as any relevant materials, at least five (5) calendar days
prior to the hearing. The hearing may be continued from time to time upon mutual
consent. At the time of the hearing, the appealing party, the Tax Administrator, and any
other interested person may present such relevant evidence as he or she may have
relating to the determination from which the appeal is taken.
D. Based upon the submission of such evidence and the review of the City’s
files, the City Manager shall issue a written notice and order upholding, modifying or
reversing the determination from which the appeal is taken. The notice shall be given
within fourteen (14) calendar days after the conclusion of the hearing and shall state the
reasons for the decision. The notice shall specify that the decision is final and that any
petition for judicial review shall be filed within ninety (90) days from the date of the
decision in accordance with Code of Civil Procedure Section 1094.6. If the City
Manager fails or refuses to act on an appeal within the fourteen (14) day period, the
appeal shall be deemed to have been denied by the City Manager on the fifteen (15th)
calendar day.
E. All notices under this section may be sent by regular mail, postage prepaid,
and shall be deemed received on the third (3rd) calendar day following the date of
mailing, as established by a proof of mailing.
3.22.230 No Injunction/Writ of Mandate. No injunction or writ of mandate or other legal
or equitable process shall issue in any suit, action, or proceeding in any court against
this City or against any officer of the City to prevent or enjoin the collection under this
Chapter of any tax or any amount of tax required to be collected and/or remitted.
3.22.240 Remedies Cumulative. All remedies and penalties prescribed by this Chapter
or which are available under any other provision of law or equity, including but not
limited to the California False Claims Act (Government Code Section 12650 et seq.) and
the California Unfair Practices Act (Business and Professions Code Section 17070 et
seq.), are cumulative. The use of one or more remedies by the City shall not bar the
use of any other remedy for the purpose of enforcing the provisions of this Chapter.
3.22.250 Notice of Changes to Ordinance.
A. Service suppliers and service users who self-collect shall begin to collect the
tax imposed by this chapter as soon as feasible after the effective date of the ordinance
codified in this chapter, but in no event later than permitted by Section 799 of the
California Public Utilities Code.
B. If a tax under this chapter is added, increased, reduced, or the tax base is
changed, the Tax Administrator shall follow the notice requirements of California Public
Utilities Code Section 799. Prior to the effective date of the change, the service supplier
shall provide the Tax Administrator with a copy of any written procedures describing the
PACKET PAGE: 165
AGENDA ITEM 5.1
24
information that the service supplier needs to implement the change. If the service
supplier fails to provide such written instructions, the Tax Administrator, or his or her
agent, shall send, by first class mail, a copy of the change to all collectors and remitters
of the City’s utility users taxes according to the latest payment records of the Tax
Administrator.
3.22.260 Penalties. Any person violating any of the provisions of this Chapter shall be
deemed guilty of a misdemeanor or an infraction at the discretion of the City Attorney.
3.22.270 Future Amendment to Cited Statute. Unless specifically provided otherwise,
any reference to a state or federal statute in this Chapter shall mean such statute as it
may be amended from time to time; provided, that such reference to a statute herein
shall not include any subsequent amendment thereto, or to any subsequent change of
interpretation thereto by a state or federal agency or court of law, to the extent that such
amendment or change of interpretation would require voter approval under California
law, or to the extent that such change would result in a tax decrease (as a result of
excluding all or a part of a utility service, or charge therefor, from taxation). Only to the
extent voter approval would otherwise be required or a tax decrease would result, the
prior version of the statute (or interpretation) shall remain applicable. For any
application or situation that would not require voter approval or would not result in a
decrease of a tax, provisions of the amended statute (or new interpretation) shall be
applicable to the maximum possible extent. To the extent that the city’s authorization
to collect or impose any tax imposed under this chapter is expanded or limited as a
result of changes in state or federal law, no amendment or modification of this chapter
shall be required to conform the tax to those changes, and the tax shall be imposed and
collected to the full extent of the authorization up to the full amount of the tax imposed
under this chapter.
3.22.280 Independent Audit of Tax Collection, Exemption, Remittance, and
Expenditure. The City shall annually verify that the taxes owed under this Chapter have
been properly applied, exempted, collected, and remitted in accordance with this
Chapter, and properly expended according to applicable municipal law. The verification
shall be performed by a qualified independent third party and the review shall employ
reasonable, cost-effective steps to assure compliance, including the use of sampling
audits. The verification shall not be required of tax remitters where the cost of the
verification may exceed the tax revenues to be reviewed. The results of each review
shall be published in an annual expenditure report.
3.22.290 Amendment or Repeal – Adjustment of Taxing Rate or Methodology. This
chapter may be repealed or amended by the city council without a vote of the people.
However, as required by California Constitution Article XIIIC (Proposition 218), voter
approval is required for any amendment or provision that would increase the maximum
rate or methodology of any tax levied pursuant to this chapter. The people of the city of
San Jacinto affirm that the following actions shall not constitute an increase of the rate
or methodology of the utility users tax requiring subsequent voter approval:
1. The restoration of the rate of the tax to a rate that is no higher than the maximum
set by this voter-approved chapter, if the city council has previously acted to reduce the
rate of the tax;
PACKET PAGE: 166
AGENDA ITEM 5.1
25
2. An action that interprets or clarifies the methodology of the tax, or any definition
applicable to the tax, so long as interpretation or clarification (even if contrary to some
prior interpretation or clarification) is not inconsistent with the language of this chapter;
3. The establishment of a class of person or service that is exempt or excepted from
the tax or the discontinuation of any such exemption or exception (other than the
discontinuation of an exemption or exception explicitly set forth in this chapter); and
4. Resuming collection of the tax imposed by this chapter, even if the city had, for
some period of time, either suspended collection of the tax or otherwise failed to collect
the tax, in whole or in part.
3.22.300 Sunset of Tax. The tax imposed by this chapter shall automatically be
terminated, without further action by the city council, or the electors of the city, ten (10)
years after the effective date of this ordinance. After said date, the tax imposed by this
chapter can only be continued or reestablished by a majority vote of San Jacinto voters
pursuant to California Propositions 62 and 218."
SECTION 2. If any section, subsection, sentence, clause, phrase or word of
this Ordinance is for any reason held to be invalid or unconstitutional by the decision of
any court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The People of San Jacinto hereby declare that
they would have adopted this Ordinance, and each and every section, subsection,
sentence, clause, or phrase not declared invalid or unconstitutional without regard to
whether any portion or the Ordinance would be subsequently declared invalid or
unconstitutional.
SECTION 3. Following certification that the citizens of San Jacinto have
approved this Ordinance, the Mayor shall sign it attesting to its adoption by the People
voting thereon at the November 4, 2014 Election, and the City Clerk shall cause the
same to be entered in the book of original ordinances of said City; and shall cause the
same, or a summary thereof, to be published as required by law. .
SECTION 4. This Ordinance shall take effect only if approved by a majority of
the eligible voters of the City of San Jacinto voting at a General Municipal election to be
held on November 4, 2014, and shall take effect ten (10) days after the City Council has
certified the results of the General Municipal election by resolution.
PACKET PAGE: 167
AGENDA ITEM 5.1
26
PASSED, APPROVED AND ADOPTED by the People of the City of San Jacinto
on November 4, 2014.
City of San Jacinto
______________________________
By: Alonso Ledezma, Mayor
ATTEST:
______________________________________
Rick Miller, City Clerk
APPROVED AS TO FORM:
______________________________________
Best Best & Krieger LLP
City Attorney
PACKET PAGE: 168
AGENDA ITEM 5.1
STATE OF CALIFORNIA ) RESOLUTION NO. 3525
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
JACINTO, CALIFORNIA CALLING FOR THE PLACEMENT OF A
GENERAL TAX MEASURE ON THE BALLOT AT THE NOVEMBER 4,
2014 GENERAL MUNICIPAL ELECTION FOR THE SUBMISSION TO
THE QUALIFIED VOTERS OF A PROPOSED ORDINANCE ENACTING
A SIX AND ONE-HALF PERCENT (6.5%) UTILITY USERS TAX WITHIN
THE CITY FOR A PERIOD OF TEN (10) YEARS, AND DIRECTING THE
CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS.
WHEREAS, the City Council would like to submit to the voters a measure enacting
a six and one-half percent (6.5%) utility users tax (“UUT”), on electricity, gas, water,
telecommunications, video, sewer and refuse usage within the City for a period of ten
(10) years; and
WHEREAS, the UUT is a general tax which would fund the City general fund.
The general fund pays for essential City services such as police, fire and paramedic
services, street operations and maintenance, library services, parks and recreation
services and general municipal services to the public; and
WHEREAS, like many other cities, the City has been undergoing a financial crisis
due to the economic downturn, takeaways by the State of California and decreasing
revenues; and
WHEREAS, the City has made significant cuts to the budget, including cuts to
public safety services; and
WHEREAS, despite such actions, the City continues to run an approximately $3.6
Million annual structural deficit; and
WHEREAS, the City has evaluated the impacts of decreased general fund
revenues on its ability to provide vital services to the public, including evaluation and
implementation of measures to reduce costs, as well as measures to increase revenue;
and
WHEREAS, the City believes only a local voter-approved funding source would
guarantee that new revenue stays in the City to help City residents; 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 approved by a majority vote of the voters; and
PACKET PAGE: 169
AGENDA ITEM 5.1
2
WHEREAS, without voter approval of the proposed UUT, the City will face serious
financial shortfalls and be required to reduce essential City services, which will endanger
the health, safety and general welfare of the City and its residents and, as such, there is a
need to adopt the UUT in order to maintain adequate funding for City services at existing
levels for the health, safety and general welfare of the residents of the City; and
WHEREAS, pursuant to Proposition 218 any general tax measure submitted to the
voters must be consolidated with a regularly scheduled general election for members of
the City Council; and
WHEREAS, the next regularly scheduled general election at which City Council
members are to be elected is November 4, 2014; and
WHEREAS, pursuant to the Government Code Section 53724 (“Proposition 62”),
a two-thirds (2/3) vote of the City Council is required to place the Measure on the
November 4, 2014 ballot.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JACINTO
DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Findings. The City Council finds that all of the preceding recitals
are true and correct.
Section 2. Submission of Measure. Pursuant to Elections Code Section
9222, Government Code Section 53724 and any other applicable requirements of the
laws of the State of California relating to general law cities, the City Council, by a two-
thirds (2/3) vote, hereby orders the following proposed ordinance to be submitted to
the voters of the City at the general municipal election to be held on Tuesday,
November 4, 2014:
“San Jacinto City Services Stability Measure. To maintain current
police, firefighter and paramedic service levels, maintain 9-1-1
emergency response times, maintain operational levels for existing
neighborhood fire stations, parks, community buildings and
infrastructure, and create jobs; shall the City of San Jacinto establish
a 6.5% Utility Users Tax for 10 years on utility services within the
City, while exempting low-income seniors, requiring annual audits
and allowing no tax rate increase without voter approval?”
YES
NO
Section 3. Text of Ordinance. The text of the ordinance to be submitted to
the voters is attached as Exhibit A.
Section 4. Conduct of Election. The City Clerk is authorized, instructed and
directed to procure and furnish any and all official ballots, printed matter and all
PACKET PAGE: 170
AGENDA ITEM 5.1
3
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 5. Notice of Election. Notice of the time and place of holding the
election is hereby given, and the City 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 6. Impartial Analysis. Pursuant to California Elections Code Section
9280, the City Council hereby directs the City Clerk to transmit a copy of the measure to
the City Attorney. The City 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 City
Clerk within ten (10) 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 of by the
City Council. In the event the entire text of the measure is not printed on the ballot, nor
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 ____. 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.”
Section 7. The election called by this Resolution shall be consolidated with the
elections to be conducted by the Riverside County Registrar of Voters to be held in
connection with the California Statewide General Election and other County elections on
Tuesday, November 4, 2014.
Section 8. Certification. The City Clerk shall certify to the passage and
adoption of this Resolution and enter it into the book of original Resolutions.
PACKET PAGE: 171
AGENDA ITEM 5.1
4
PASSED, APPROVED AND ADOPTED this 5th day of August, 2014, by the
following vote:
City of San Jacinto
_____________________________
By: Alonso Ledezma, Mayor
ATTEST:
_______________________
Rick Miller, City Clerk
APPROVED AS TO FORM:
Best Best & Krieger LLP
_____________________________
Jeffrey S. Ballinger, City Attorney
PACKET PAGE: 172
AGENDA ITEM 5.1
5
I, Richard Miller, City Clerk of the City of San Jacinto, do hereby certify that the
foregoing resolution is the actual resolution duly and regularly adopted by the City
Council at a regular meeting on the 5th day of August, 2014, by the following vote to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
_____________________________
Richard Miller, City Clerk
PACKET PAGE: 173
AGENDA ITEM 5.1
6
ATTACHMENT “A”
ORDINANCE REGARDING UTILITY USER TAX
[SEE ATTACHED PAGES 7 THROUGH 34]
PACKET PAGE: 174
AGENDA ITEM 5.1
7
STATE OF CALIFORNIA ) ORDINANCE NO. 14-09
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
MEASURE “____”
AN ORDINANCE OF THE PEOPLE OF THE CITY OF SAN
JACINTO, CALIFORNIA, ADDING CHAPTER 3.22 TO
TITLE 3 OF THE SAN JACINTO MUNICIPAL CODE,
ENACTING A SIX AND ONE-HALF PERCENT (6.5%)
UTILITY USERS TAX WITHIN THE CITY
THE PEOPLE OF THE CITY OF SAN JACINTO, CALIFORNIA, DO ORDAIN
AS FOLLOWS:
SECTION 1. Chapter 3.22 is hereby added to Title 3 of the San Jacinto
Municipal Code, and shall read as follows:
"Chapter 3.22 - UTILITY USERS TAX
Sections:
3.22.010 Purpose.
3.22.020 Definitions.
3.22.030 Communication users tax.
3.22.040 Electricity users tax.
3.22.050 Gas users tax.
3.22.060 Collection of Tax From Service Users Receiving Direct Purchase of
Gas or Electricity.
3.22.070 Water users tax.
3.22.080 Video service users tax.
3.22.090 Sewer service users tax.
3.22.100 Solid Waste Service users tax.
3.22.110 Constitutional, Statutory and Other Exemptions.
3.22.120 Substantial Nexus/Minimum Contacts.
3.22.130 Duty to collect--Procedures.
3.22.140 Filing Return and Payment.
3.22.150 Collection of Penalties.
3.22.160 Deficiency Determination and Assessment – Tax Application Errors.
3.22.170 Administrative Remedy – Non-Paying Services Users.
3.22.180 Actions to Collect.
3.22.190 Additional Powers and Duties of Tax Administrator.
3.22.200 Records.
3.22.210 Refunds.
3.22.220 Appeals.
3.22.230 No Injunction/Writ of Mandate.
PACKET PAGE: 175
AGENDA ITEM 5.1
8
3.22.240 Remedies Cumulative.
3.22.250 Notice of Changes to Ordinance.
3.22.260 Penalties.
3.22.270 Future Amendment to Cited Statute.
3.22.280 Independent Audit of Tax Collection, Exemption, Remittance and
Expenditure.
3.22.290 Amendment or Repeal – Adjustment of Taxing Rate or Methodology.
3.22.300 Sunset of Tax.
3.22.010 Purpose. This chapter is enacted solely to raise revenue for the
general governmental purposes of the City. All of the proceeds from the tax imposed by
this chapter shall be placed in the City's general fund and used for the usual current
expenses of the City.
3.22.020 Definitions. The following words and phrases whenever used in this
chapter shall be construed as defined in this section.
"Ancillary Telecommunications Services" means services that are associated
with or incidental to the provision, use or enjoyment of telecommunications services,
including but not limited to the following services:
1. "Conference bridging service" means an ancillary service that links two or
more participants of an audio or video conference call and may include the
provision of a telephone number. Conference bridging service does not
include the telecommunications services used to reach the conference
bridge.
2. "Detailed telecommunications billing service" means an ancillary service of
separately stating information pertaining to individual calls on a customer’s
billing statement.
3. "Directory assistance" means an ancillary service of providing telephone
number information, and/or address information.
4. "Vertical service" means an ancillary service that is offered in connection
with one or more telecommunications services, which offers advanced
calling features that allow customers to identify callers and to manage
multiple calls and call connections, including conference bridging services.
5. "Voice mail service" means an ancillary service that enables the customer
to store, send or receive recorded messages. Voice mail service does not
include any vertical services that the customer may be required to have in
order to utilize the voice mail service.
"Ancillary Video Services" shall mean services that are associated with or
incidental to the provision or delivery of Video Services, including but not limited to
electronic program guide services, search functions, recording services, interactive
services or other communications services that are associated with or in incidental to
the provision, use or enjoyment of video services.
PACKET PAGE: 176
AGENDA ITEM 5.1
9
"Billing Address" means the mailing address of the service user where the
service supplier submits invoices or bills for payment by the service user.
"City" means the city of San Jacinto.
Except as otherwise provided in this chapter, "Charges" shall include the value of
any other services, credits, property of every kind or nature, or other consideration
provided by the service user in exchange for the utility services being provided.
"Communication Services" means telecommunication services and ancillary
telecommunication services.
"Gas" means natural or manufactured gas or any alternate hydrocarbon fuel
which may be substituted therefor.
"Mobile Telecommunications Service" shall have the same meaning and usage
as set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124) and
the regulations thereunder.
"Month" means a calendar month.
"Municipal Organization" means an organization or association created by statute
or by voluntary action, whose purpose is to facilitate the development and dissemination
of uniform rulings or interpretations regarding the application of utility user taxes to
communications services in the State of California.
"Nonutility supplier" means:
1. A service supplier, other than a supplier of electric distribution services to
all or a significant portion of the city, which generates electricity for sale to
others, and shall include but is not limited to any publicly owned electric
utility, investor-owned utility, co-generator, distributed generation provider,
exempt wholesale generator (15 U.S.C. Section 79z-5a), municipal utility
district, federal power marketing agency, electric rural cooperative, or
other supplier or seller of electricity;
2. An electric service provider (ESP), electricity broker, marketer, aggregator,
pool operator, or other electricity supplier other than a supplier of electric
distribution services to all or a significant portion of the city, which sells or
supplies electricity or supplemental services to electricity users within the
city; or
3. A gas service supplier, aggregator, marketer or broker, other than a
supplier of gas distribution services to all or a significant portion of the city,
which sells or supplies gas or supplemental services to gas users within
the city.
PACKET PAGE: 177
AGENDA ITEM 5.1
10
"Person" means, without limitation, any natural individual, firm, trust, common law
trust, estate, partnership of any kind, association, syndicate, club, joint stock company,
joint venture, joint powers authority, limited liability company, corporation (including
foreign, domestic, and non-profit), municipal district or municipal corporation (other than
the city) cooperative, receiver, trustee, guardian, or other representative appointed by
order of any court.
"Place of Primary Use" means the street address representative of where the
customer’s use of the communications service primarily occurs, which must be the
residential street address or the primary business street address of the customer.
"Post-Paid Telecommunication Service” shall mean the telecommunication
service obtained by making a payment on a telecommunication-by-telecommunication
basis either through the use of a credit card or payment mechanism such as a bank
card, travel card, credit card, or debit card, or by charge made to a service number
which is not associated with the origination or termination of the telecommunication
service.
"Prepaid Telecommunication Service" shall mean the right to access
telecommunication services, which must be paid for in advance and which enables the
origination of telecommunications using an access number or authorization code,
whether manually or electronically dialed, and that is sold in predetermined units or
dollars of which the number declines with use in a known amount.
"Private Telecommunication Service" shall mean a telecommunication service
that entitles the customer to exclusive or priority use of a telecommunications channel
or group of channels between or among termination points, regardless of the manner in
which such channel or channels are connected, and includes switching capacity,
extension lines, stations, and any other associated services that are provided in
connection with the use of such channel or channels. A telecommunications channel is
a physical or virtual path of telecommunications over which signals are transmitted
between or among customer channel termination points (i.e., the location where the
customer either inputs or receives the telecommunications).
"Service Address" means the residential street address or the business street
address of the service user. For a communication or video service user, “service
address” means any of the following:
1. The location of the service user’s communications equipment from which
the communication originates or terminates, regardless of where the
communication is billed or paid; or,
2. If the location in subsection (1) of this definition is unknown (e.g., mobile
telecommunications or VoIP service), the service address means the
location of the service user’s place of primary use, or
PACKET PAGE: 178
AGENDA ITEM 5.1
11
3. For prepaid telecommunication service, “service address” means the
location associated with the service number, or, if not known, the point of
sale of the services.
"Service supplier" means any entity or person, including the City, that provides
communication, electric, gas, video, sewer, solid waste or water services to a user of
such services within the City, including any entity or person required to collect or self-
collect and remit a tax as imposed by this chapter, including its billing agent.
"Service user" means a person required to pay a tax imposed by this chapter.
"State" means the state of California.
"Streamlined Sales and Use Tax Agreement" means the multi-state agreement
commonly known and referred to as the Streamlined Sales and Use Tax Agreement,
and as it is amended from time to time.
"Tax administrator" means the Finance Director of the city of San Jacinto or his
or her designated representative.
"Telecommunications services" means the transmission, conveyance, or routing
of voice, data, audio, video, or any other information or signals to a point, or between or
among points, whatever the technology used. The term “telecommunications services”
includes such transmission, conveyance, or routing in which computer processing
applications are used to act on the form, code or protocol of the content for purposes of
transmission, conveyance or routing without regard to whether such services are
referred to as voice over internet protocol (VoIP) services or are classified by the
Federal Communications Commission as enhanced or value added, and includes video
and/or data services that is functionally integrated with “telecommunication services”.
“Telecommunications services” include, but are not limited to the following services,
regardless of the manner or basis on which such services are calculated or billed:
ancillary telecommunication services; intrastate, interstate, and international
telecommunications services; mobile telecommunications service; prepaid
telecommunication service; post-paid telecommunication service; private
telecommunication service; paging service; 800 service (or any other toll-free numbers
designated by the Federal Communications Commission); 900 service (or any other
similar numbers designated by the Federal Communications Commission for services
whereby subscribers who call in to pre-recorded or live service).
"Telephone corporation," "electrical corporation," "gas corporation" and "water
corporation" shall have the same meanings as defined in Sections 234, 218, 222, and
241, respectively, of the California Public Utilities Code except, "electrical corporation,"
"gas corporation" and "water corporation" shall also be construed to include any
municipality or public agency engaged in the selling or supplying of electricity, gas or
water to a service user.
PACKET PAGE: 179
AGENDA ITEM 5.1
12
"Value-Added Non-Voice Data Service" means a service that otherwise meets
the definition of “Telecommunication Services” in which computer processing
applications are used to act on the form, content, code, or protocol of the information or
data primarily for a purpose other than transmission, conveyance or routing.
"Video programming" means those programming services commonly provided to
subscribers by a video service supplier, including, but not limited to, basic services,
premium services, audio services, video games, pay-per-view services, video on
demand, origination programming, or any other similar services, regardless of the
content of such video programming, or the technology used to deliver such services,
and regardless of the manner or basis on which such services are calculated or billed.
"Video service supplier" means any person, company, or service which provides
or sells one or more channels, programs or individual episodes of video programming,
or provides or sells the capability to receive one or more channels, programs or
individual episodes of video programming, including any communications that are
ancillary, necessary or common to the use and enjoyment of the video programming, to
or from a residential or business address in the city, where some fee is paid, whether
directly or included in dues or rental charges for that service, whether or not public
rights-of-way are utilized in the delivery of the video programming or communications. A
"video service supplier" includes, but is not limited to, multichannel video programming
distributors [as defined in 47 U.S.C.A. Section 522(13)], open video systems (OVS)
suppliers, suppliers of cable television or video program delivery of any kind, be it
through channel or other subscribers or to individual buyers of programs or unique
episodes, master antenna television, satellite master antenna television, multichannel
multipoint distribution services, video services using VoIP (ie: IP-TV and IP-Video,
which provide, among other things, broadcasting and video on demand), direct
broadcast satellite (to the extent allowed by federal law), and other suppliers of video
programming or communications (including two-way communications), whatever their
technology.
"Video services" means video programming and any and all services related to
the providing, recording, delivering, use or enjoyment of video programming (including
origination programming and programming using VoIP, (e.g.: IP-TV and IP-Video)),
using one or more channels by a video service supplier, regardless of the technology
used, to deliver, store or provide such services, and regardless of the manner or basis
on which such services are calculated or billed, including ancillary video services, data
services, telecommunication services, or interactive communication services that are
functionally integrated with video services.
"VoIP" (voice over internet protocol) means the digital process of making and
receiving real-time voice transmissions over any Internet Protocol network.
"800 service" means a “telecommunications service” that allows a caller to dial a
toll-free number without incurring a charge for the call. The service is typically marketed
PACKET PAGE: 180
AGENDA ITEM 5.1
13
under the name "800", "855", "866", "877", and "888" toll-free calling, and any
subsequent numbers designated by the Federal Communications Commission.
"900 service" means an inbound toll "telecommunications service" purchased by
a subscriber that allows the subscriber’s customers to call in to the subscriber’s
prerecorded announcement or live service. "900 service" does not include the charge
for: collection services provided by the seller of the "telecommunications services" to
the subscriber, or service or product sold by the subscriber to the subscriber’s
customer. The service is typically marketed under the name "900" service, and any
subsequent numbers designated by the Federal Communications Commission.
3.22.030 Communication users tax.
A. There is imposed a tax upon every person who uses any communication
services in the city, other than a telephone corporation. The tax imposed by this section
shall be at the rate of six and one half percent (6.5%) of the charges made for such
communication services. The tax shall be collected from the service user by the
communication services supplier or its billing agent. There is a rebuttable presumption
that communication services, which services are capable of terminating a call to another
person on the general telephone network, and which are billed to a billing or service
address in the City, are used, in whole or in part, within the City’s boundaries, and such
services are subject to taxation under this chapter. If the billing address of the service
user is different from the service address, the service address of the service user shall
be used.
B. "Mobile Telecommunications Service" shall be sourced in accordance with
the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C.
Section 124). The Tax Administrator may issue and disseminate to communication
service suppliers, which are subject to the tax collection requirements of this Part,
sourcing rules for the taxation of other communication services, including but not limited
to post-paid telecommunication services, prepaid telecommunication services, and
private telecommunication services, provided that such rules are based upon custom
and common practice that further administrative efficiency and minimize multi-
jurisdictional taxation (e.g., Streamlined Sales and Use Tax Agreement).
C. As used in this section, the term “communications services” shall include,
but shall not be limited to charges for: connection, reconnection, termination,
movement, or change of communications services; late payment fees; detailed billing;
central office and custom calling features (including but not limited to call waiting, call
forwarding, caller identification and three-way calling); voice mail and other messaging
services; directory assistance; access and line charges; universal service charges;
regulatory, administrative and other cost recovery charges; local number portability
charges; and text and instant messaging. “Communication services” shall not include
digital downloads such as, music, ringtones, games, and similar digital products.
PACKET PAGE: 181
AGENDA ITEM 5.1
14
D. To prevent actual multijurisdictional taxation of communication services
subject to tax under this section, any service user, upon proof to the tax administrator
that the service user has previously paid the same tax in another state or city on such
communication services, shall be allowed a credit against the tax imposed to the extent
of the amount of such tax legally imposed in such other state or city; provided, however,
the amount of credit shall not exceed the tax owed to the city under this section.
E. The Tax Administrator, from time to time, may issue and disseminate to
communication service suppliers that are subject to the tax collection requirements of
this chapter, an administrative ruling identifying those communication services that are
subject to the tax of subsection (A) above. This administrative ruling shall not impose a
new tax, revise an existing tax methodology as stated in this chapter, or increase an
existing tax except as allowed by California Government Code Section 53750(h)(2), as
it may be amended from time to time.
F. To facilitate the uniform interpretation and application of similar
ordinance provisions in other local jurisdictions in the state, the Tax Administrator may,
prior to issuing and disseminating a sourcing rule or an administrative tax ruling, submit
his or her proposed sourcing rule or administrative tax ruling to a Municipal Organization
for review and comment, according to the rules and procedures of that Municipal
Organization, or its successor organization.
3.22.040 Electricity users tax.
A. There is imposed a tax upon every person other than a water corporation,
electrical corporation, or gas corporation, using electricity in the City. The tax imposed
by this section shall be at the rate of six and one half percent (6.5%) of the charges
made for such electricity, and for any supplemental services or other associated
activities directly related and/or necessary for the provision of electricity to the end-user,
which are provided by a service supplier or non-utility supplier to a service user. The tax
shall be collected from the service user by the service supplier or non-utility service
supplier, or its billing agent.
B. As used in this section, the term “charges” shall apply to all services,
components and items that are: i) necessary or common to the receipt, use and
enjoyment of electric service; or, ii) currently, or historically have been, included in a
single or bundled rate for electric service by a local distribution company to a class of
retail customers. The term “charges” shall include, but is not limited to, the following
charges:
1. energy charges;
2. distribution and transmission charges;
3. metering charges;
4. stand-by, reserves, firming, ramping, voltage support, regulation,
emergency, or other similar minimum charges for services;
5. customer charges, service establishment or reestablishment charges,
demand charges, fuel or other cost adjustments, power exchange
PACKET PAGE: 182
AGENDA ITEM 5.1
15
charges, independent system operator (ISO) charges, stranded
investment or competitive transition charges (CTC), public purpose
program charges, nuclear decommissioning charges, trust transfer
amounts (bond financing charges), franchise fee, franchise surcharge,
annual and monthly charges, and other charges, fees and surcharges
which are necessary to or common for the receipt, use and enjoyment of
electric service; and
6. charges, fees, or surcharges for electricity services or programs, which
are mandated by the California Public Utilities Commission, or the Federal
Energy Regulatory Commission, whether or not such charges, fees, or
surcharges appear on a bundled or line item basis on the customer billing.
C. As used in this section, the term "using electricity" shall not be construed to
mean the storage of such electricity by a person in a battery owned or possessed by
him or her for use in an automobile or other machinery or device apart from the
premises upon which the electricity was received; provided, however, that the term shall
include the receiving of such electricity for the purpose of using it in the charging of
batteries; nor shall the term include electricity used and consumed by an electric public
utility; nor shall the term include the mere receiving of such electricity by an electric
public utility or governmental agency at a point within the City for resale; or the use of
such electricity in the production or distribution of water by a public utility or a
governmental agency.
D. The tax on electricity provided by self-production or by a non-utility supplier or
an electric utility not under the jurisdiction of this Chapter shall be collected and remitted
in the manner set forth in Section 3.22.060. All other taxes on charges for electricity
imposed by this section shall be collected from the service user by the electric service
supplier or its billing agent. The amount of the tax collected in one month shall be
remitted to the Tax Administrator on or before the twentieth (20th) day of the following
month or, at the option of the person required to collect or remit the tax, such person
shall remit an estimated amount of the tax measured by the tax billed in the previous
month or upon the payment pattern of the service user, which must be received by the
Tax Administrator on or before the twentieth (20th) day of the following month, provided
that the service user shall submit an adjusted payment or request for credit, as
appropriate, within sixty (60) calendar days following each calendar quarter. The credit,
if approved by the Tax Administrator, may be applied against any subsequent tax bill
that becomes due.
3.22.050 Gas users tax.
A. There is imposed a tax upon every person, other than a water corporation,
electrical corporation, or gas corporation, using gas in the City, which is transported
through a pipeline distribution system or by mobile transport. The tax imposed by this
section shall be at the rate of six and one half percent (6.5%) of the charges made for
such gas, including all services related to the storage, transportation, and delivery of
PACKET PAGE: 183
AGENDA ITEM 5.1
16
such gas, and shall apply to all uses of gas, including but not limited to heating,
electricity generation, or the use of gas as a component of a manufactured product.
B. As used in this section, the term “charges” shall apply to all services,
components and items for gas service that are: i) necessary or common to the receipt,
use and enjoyment of gas service; or, ii) currently, or historically have been, included in
a single or bundled rate for gas service by a local distribution company to a class of
retail customers. The term “charges” shall include, but is not limited to, the following
charges:
1. the commodity charges for purchased gas, or the cost of gas owned by
the service user (including the actual costs attributed to drilling,
production, lifting, storage, gathering, trunkline, pipeline, and other
operating costs associated with the production and delivery of such gas),
which is delivered through a gas pipeline distribution system or by mobile
transport;
2. gas transportation charges (including interstate charges to the extent not
included in commodity charges);
3. storage charges; provided, however, that the service supplier shall not be
required to apply the tax to any charges for gas storage services when the
service supplier cannot, as a practical matter, determine the jurisdiction
where such stored gas is ultimately used; but it shall be the obligation of
the service user to self-collect the amount of tax not applied to any charge
for gas storage by the service supplier and to remit the tax to the
appropriate jurisdiction;
4. capacity or demand charges, service establishment or reestablishment
charges, administrative charges, marketing charges, transition charges,
customer charges, minimum charges, annual and monthly charges, and
any other charges which are necessary or common to the receipt, use and
enjoyment of gas service; and
5. charges, fees, or surcharges for gas services or programs, which are
mandated by the California Public Utilities Commission or the Federal
Energy Regulatory Commission, whether or not such charges, fees, or
surcharges appear on a bundled or line item basis on the customer billing.
C. The following shall be excluded from the base on which the tax imposed in
this section is computed:
1. Charges made for natural gas which is to be resold and delivered through
mains and pipes;
2. Charges made for natural gas sold for use in the generation of electrical
energy or for the production or distribution of water by a public utility or
governmental agency;
3. Charges made by a gas utility for gas used and consumed in the conduct
of business of gas public utilities;
4. Charges made for gas used in the propulsion of motor vehicles, as that
phrase is defined in the vehicle code of the state, utilizing natural gas;
and,
PACKET PAGE: 184
AGENDA ITEM 5.1
17
5. Charges made for gas used by a nonutility supplier to generate electrical
energy for its own use or for sale to others provided the electricity so
generated is subject to the tax in accordance with Section 3.22.060 of this
chapter.
D. The tax on gas provided by self-production or by a non-utility supplier not
under the jurisdiction of this Chapter shall be collected and remitted in the manner set
forth in Section 3.22.060. All other taxes on charges for gas imposed by this section
shall be collected from the service user by the gas service supplier or its billing agent.
The amount of tax collected in one month shall be remitted to the Tax Administrator,
and must be received by the Tax Administrator on or before the twentieth (20th) day of
the following month; or, at the option of the person required to collect or remit the tax,
such person shall remit an estimated amount of tax measured by the tax billed in the
previous month or upon the payment pattern of the service user, which must be
received by the Tax Administrator on or before the twentieth (20th) day of the following
month, provided that the service user shall submit an adjusted payment or request for
credit, as appropriate, within sixty (60) calendar days following each calendar quarter.
The credit, if approved by the Tax Administrator, may be applied against any
subsequent tax bill that becomes due.
3.22.060 Collection of Tax from Service Users Receiving Direct Purchase of Gas or
Electricity.
A. Any service user subject to the tax imposed by Sections 3.22.040 or
3.22.050, hereof, which produces gas or electricity for self-use, or which receives gas or
electricity, including any related supplemental services, directly from a non-utility
supplier not under the jurisdiction of this chapter, or which otherwise is not having the
full tax due on the use of gas or electricity in the City that is directly billed and collected
by the service supplier or its billing agent, shall report said fact to the Tax Administrator
and shall remit the tax due directly to the Tax Administrator within thirty (30) calendar
days of such use. In lieu of paying said actual tax, the service user may, at its option,
remit to the Tax Administrator within thirty (30) calendar days of such use an estimated
amount of tax measured by the tax billed in the previous month, or upon the pattern
payment of similar customers of the service supplier using similar amounts of gas or
electricity, provided that the service user shall submit an adjusted payment or request
for credit, as appropriate, within sixty (60) calendar days following each calendar
quarter. The credit, if approved by the Tax Administrator, may be applied against any
subsequent tax bill that becomes due.
B. The Tax Administrator may require said service user to identify its non-utility
supplier and provide, subject to audit, invoices, books of account, or other satisfactory
evidence documenting the quantity of gas or electricity used and the cost or price
thereof. If the service user is unable to provide such satisfactory evidence, or, if the
administrative cost of calculating the tax, in the opinion of the City, is excessive, the City
may determine the tax by applying the tax rate to the equivalent charges the service
user would have incurred if the gas or electricity used had been provided by the service
supplier which is the primary supplier of gas or electricity.
PACKET PAGE: 185
AGENDA ITEM 5.1
18
3.22.070 Water users tax.
A. There is imposed a tax upon every person, other than a water corporation,
electrical corporation, or gas corporation, using water in the City which is transported
and delivered through a pipeline distribution system. The tax imposed by this section
shall be at the rate of six and one half percent (6.5%) of the charges made for such
water and shall be collected from the service user by the water service supplier, or its
billing agent.
B. As used in this section, the term “charges” shall apply to all services,
components and items that are: i) necessary for or common to the receipt, use or
enjoyment of water service; or, ii) currently are or historically have been included in a
single or bundled rate for water service by a local distribution company to a class of
retail customers. The term “charges” shall include, but is not limited to, the following
charges:
1. water commodity charges (potable and non-potable);
2. distribution or transmission charges;
3. metering charges;
4. customer charges, late charges, service establishment or reestablishment
charges, franchise fees, franchise surcharges, annual and monthly
charges, and other charges, fees and surcharges which are necessary for
or common to the receipt, use or enjoyment of water service; and,
5. charges, fees, or surcharges for water services or programs, which are
mandated by a water district or a state or federal agency, whether or not
such charges, fees, or surcharges appear on a bundled or line item basis
on the customer billing.
C. There shall be excluded from the base on which the tax imposed in this
section computed charges made for water which is to be resold and delivered through a
pipeline distribution system; and charges made by a municipal water department, public
utility or a county or municipal water district for water used and consumed by such
department, utility or district in the conduct of the business of such department, utility or
district.
D. The tax on water service imposed by this section shall be collected from the
service user by the water service supplier or its billing agent. The amount of tax
collected in one (1) month shall be remitted to the Tax Administrator, and must be
received by the Tax Administrator on or before the twentieth (20th) calendar day of the
following month.
3.22.080. Video service users tax.
A. There is imposed a tax upon every person using video services in the city from
a video service supplier. The tax imposed by this section shall be at the rate of six and
one half percent (6.5%) of the charges made for such video services. There is a
rebuttable presumption that video services which are billed to a billing or service
PACKET PAGE: 186
AGENDA ITEM 5.1
19
address in the city are used, in whole or in part, within the City’s boundaries, and such
services are subject to taxation under this section. The tax shall be collected from the
service user by the video service supplier or its billing agent.
B. The tax administrator may issue and disseminate to video service suppliers
which are subject to the tax collection requirements of this section, an administrative
ruling identifying those video services, or charges therefor, that are subject to or not
subject to the tax of subsection (A) above. This administrative ruling shall not impose a
new tax, revise an existing tax methodology as stated in this chapter, or increase an
existing tax except as allowed by California Government Code Section 53750(h)(2), as it
may be amended from time to time.
C. As used in this section, the term "charges" shall include, but not be limited
to:
1. regulatory fees and surcharges, franchise fees and access fees (PEG);
2. initial installation of equipment necessary for provision and receipt of video
services;
3. late fees, collection fees, bad debt recoveries, and return check fees;
4. activation fees, reactivation fees, and reconnection fees;
5. video services;
6. equipment leases (e.g. remote, recording and/or search devices;
converters); and
7. service calls, service protection plans, name changes, changes or
services, and special services.
D. The tax imposed in this section shall be collected from the service user by
the video service supplier, its billing agent, or a reseller of such services. In the case of
video service, the service user shall be deemed to be the purchaser of the bulk video
service (e.g. an apartment owner), unless such service is resold to individual users, in
which case the service user shall be the ultimate purchaser of the video service. The
amount of tax collected in one month shall be remitted to, and received by, the tax
administrator on or before the twentieth (20th) calendar day of the following month.
3.22.090 Sewer service users tax.
A. There is imposed a tax upon every person in the City using sewer service in
the City. The tax imposed by this section shall be at the rate of six and one half percent
(6.5%) of the charges made for such sewer service and shall be paid by the person
paying for such sewer services.
B. As used in this section, the term “charges” shall apply to all services,
components and items that are: i) necessary for or common to the receipt, use or
enjoyment of sewer service; or ii) currently are or historically have been included in a
single or bundled rate for sewer service to retail customers. The term “charges” shall
include, but is not limited to, the following charges: customer charges, late charges,
service establishment or reestablishment charges, annual and monthly charges, and
other charges, fees and surcharges which are necessary for or common to the receipt,
PACKET PAGE: 187
AGENDA ITEM 5.1
20
use or enjoyment of sewer service; and charges, fees, or surcharges for sewer services
or programs which are mandated by the city, a state or federal agency, whether or not
such charges, fees, or surcharges appear on a bundled or line-item basis on the
customer billing.
C. The tax on sewer service imposed by this section shall be collected from the
service user by the sewer service supplier or its billing agent. The amount of tax
collected in one month shall be remitted to the tax administrator, and must be received
by the tax administrator on or before the twentieth (20th) calendar day of the following
month.
3.22.100 Solid Waste service users tax.
A. There is imposed a tax upon every person in the City receiving solid waste
collection, recycling and/or disposal services from the city or any solid waste hauler
franchised by the city. There is also imposed a tax upon every person in the city that
delivers solid waste directly to a transfer station or disposes of solid waste at any city-
owned or city-contracted recycling facility or landfill. The tax imposed by this section
shall be at the rate of six and one half percent (6.5%) of the charges made for such
service and shall be paid by the person paying for such solid waste service.
B. As used in this section, the term “charges” shall apply to all services,
components and items that are: i) necessary for or common to the receipt, use or
enjoyment of solid waste collection, recycling and/or disposal services; or ii) currently
are or historically have been included in a single or bundled rate for solid waste
collection, recycling and/or disposal services to retail customers. The term “charges”
shall include, but is not limited to, the following charges: customer charges, late
charges, service establishment or reestablishment charges, annual and monthly
charges, and other charges, fees and surcharges which are necessary for or common
to the receipt, use or enjoyment of solid waste collection, recycling and/or disposal
services; and charges, fees, or surcharges for solid waste collection, recycling and/or
disposal services or programs which are mandated by the city, a state or federal
agency, whether or not such charges, fees, or surcharges appear on a bundled or line-
item basis on the customer billing.
C. The tax imposed by this section on every person in the city using solid waste
collection, recycling and/or disposal services shall be collected from the service user by
the service supplier or its billing agent. The amount of tax collected in one month shall
be remitted to the tax administrator, and must be received by the tax administrator on or
before the twentieth (20th) calendar day of the following month.
D. The tax imposed upon every person in the city that delivers solid waste
directly to a transfer station or landfill shall be collected from the service user by the
operator of the transfer station or landfill, provided that the transfer station or landfill
operator shall not collect the tax from any person who shows proof, in a form deemed
satisfactory by the tax administrator, that the person’s place of primary use is outside
PACKET PAGE: 188
AGENDA ITEM 5.1
21
the city’s jurisdiction. The amount of tax collected by the transfer station or landfill
operator in one month shall be remitted to the tax administrator, and must be received
by the tax administrator on or before the twentieth (20th) calendar day of the following
month.
3.22.110 Constitutional, Statutory and Other Exemptions.
A. The taxes imposed by this Chapter shall not apply to:
1. Any person or service user if imposition of such tax upon that person or
service user would be in violation of a federal or state statute or the
Constitution of the United States or the Constitution of the State of
California, or otherwise exempted by this Chapter;
2. The City; and
3. Any household in which a senior aged sixty-two (62) years or older resides
and the total income of the household in which such senior resides is at or
below fifty percent (50%) of the area median income, adjusted for family
size, as determined under the Section 8 Income Limits for Riverside
County as published by the United States Department of Housing and
Urban Development.
B. This chapter shall require the city to levy and collect a utility users tax from
service users for the utility services described herein, except where any such service
user or utility service is made expressly exempt from utility users tax by this chapter.
Notwithstanding the above, the City Council is hereby expressly authorized, by
ordinance or resolution, to establish classes of persons or classes of utility service
otherwise subject to payment of the tax imposed by this chapter, and to suspend the
collection of utility users tax, in whole or in part, from such classes of persons or utility
service, and may, from time to time, repeal or modify any such ordinance or resolution,
provided that no such action shall result in the collection of utility users tax from any
service user in the City for any class of utility service in excess of the maximum rates
and methodology set forth in this chapter.
C. Any service user that is exempt from the tax pursuant to subsection (A), or
from whom the City Council has suspended collection of the tax imposed by this
Chapter pursuant to subsection (B) shall file an application with the Tax Administrator
for said exemption or suspension; provided, however, this requirement shall not apply to
a service user that is a state or federal agency or subdivision with a commonly
recognized name. Said application shall be made upon a form approved by the Tax
Administrator and shall state those facts, declared under penalty of perjury, which
qualify the applicant for an exemption or suspension, and shall include the names of all
utility service suppliers serving that service user. If deemed subject to an exemption or
suspension by the Tax Administrator, such service user shall give the Tax Administrator
timely written notice of any change in utility service suppliers so that the Tax
Administrator can properly notify the new utility service supplier of the service user's tax
exempt or suspended status. A service user that fails to comply with this section shall
not be entitled to a refund of utility users taxes collected and remitted to the Tax
PACKET PAGE: 189
AGENDA ITEM 5.1
22
Administrator from such service user as a result of such non-compliance. Upon request
of the Tax Administrator, a service supplier or non-utility supplier, or their billing agents,
shall provide a list of names and addresses of those customers which, according to their
billing records, are deemed exempt or suspended from the payment of utility users tax.
D. The decision of the Tax Administrator may be appealed pursuant to Section
3.22.220 of this Chapter. Filing an application with the Tax Administrator and an appeal
to the City Manager pursuant to Section 3.22.220 of this Chapter is a prerequisite to a
suit thereon.
E. Following application and approval of any exemption or suspension from the
payment of all or any part of the utility users tax by the City, the Tax Administrator shall
prepare a list of the persons exempted or suspended from the payment of such tax by
virtue of this section and shall furnish a copy thereof to each service supplier.
F. Any service user who has been exempted or suspended from the collection of
utility users tax pursuant to this section shall notify the Tax Administrator within ten (10)
calendar days following a change in facts or circumstances which may disqualify said
service user from receiving such exemption or suspension. It shall be a misdemeanor
for any person to knowingly receive the benefits of an exemption or suspension
provided by this section when the basis for such exemption or suspension does not
exist or ceases to exist.
3.22.120 Substantial Nexus / Minimum Contacts.
A. For purposes of imposing a tax or establishing a duty to collect and remit a
tax under this Chapter, “substantial nexus” and “minimum contacts” shall be construed
broadly in favor of the imposition, collection and/or remittance of the utility users tax to
the fullest extent permitted by state and federal law, and as it may change from time to
time by judicial interpretation or by statutory enactment. A service supplier shall be
deemed to have sufficient activity in the City for tax collection and remittance purposes
if its activities include, but are not limited to, any of the following: maintains or has within
the City, directly or through an agent or subsidiary, a place of business of any nature;
solicits business in the City by employees, independent contractors, resellers, agents or
other representatives; solicits business in the City on a continuous, regular, seasonal or
systematic basis by means of advertising that is broadcast or relayed from a transmitter
with the City or distributed from a location with the City; or advertises in newspapers or
other periodicals printed and published within the City or through materials distributed in
the City by means other than the United States mail; or if there are activities performed
in the city on behalf of the service supplier that are significantly associated with the
service supplier’s ability to establish and maintain a market in the city for the provision
of services that are subject to a tax under this chapter.
B. The City shall make available, upon request, an accurate description of its
jurisdictional boundaries based on street addresses and/or ZIP Plus Four, in an
PACKET PAGE: 190
AGENDA ITEM 5.1
23
electronic format. If a service supplier relies upon such information provided by City, it
shall not be responsible for any errors in taxation that may result.
3.22.130 Duty to collect--Procedures.
The duty to collect and remit the taxes imposed by this chapter shall be performed as
follows:
A. The tax shall be collected insofar as practicable at the time and along with the
charges made in accordance with the regular billing practices of the service supplier.
Where the amount paid by a service user to a service supplier is less than the full
amount of the charge and tax which has accrued for the billing period, a proportionate
share of both the charge and the tax shall be deemed to have been paid. In those
cases where a service user has notified the service supplier of refusal to pay the tax
imposed on said charges, Section 3.22.170 shall apply.
B. The duty to collect tax from a service user shall commence with the beginning
of the first full regular billing period applicable to the service user where all charges
normally included in such regular billing are subject to the provisions of this chapter.
Where a person receives more than one billing, one or more being for different periods
than another, the duty to collect shall arise separately for each billing.
3.22.140 Filing Return and Payment. Each person required by this Chapter to remit a
tax shall file a return to the Tax Administrator, on forms approved by the Tax
Administrator on or before the due date. The full amount of the tax collected shall be
included with the return and filed with the Tax Administrator. The Tax Administrator is
authorized to require such additional information as he/she deems necessary to
determine if the tax is being levied, collected, and remitted in accordance with this
Chapter. Returns are due immediately upon cessation of business for any reason.
Pursuant to Revenue and Tax Code Section 7284.6, the Tax Administrator, and its
agents, shall maintain such filing returns as confidential information exempt from
disclosure provisions of the Public Records Act.
3.22.150 Collection Penalties.
A. Taxes collected from a service user, or self-collected by a service user
subject to Section 3.22.060 of this Chapter, are delinquent if not received by the Tax
Administrator on or before the due date. Should the due date occur on a weekend or
legal holiday, the return must be received by the Tax Administrator on or before the first
regular working day following the weekend or legal holiday. A direct deposit, including
electronic fund transfers and other similar methods of electronically exchanging monies
between financial accounts, made by a service supplier in satisfaction of its obligations
under this subsection shall be considered timely if the transfer is initiated on or before
the due date, and the transfer settles into the City’s account on or before the following
business day. Any tax billed to a service user but not paid to the service supplier shall
PACKET PAGE: 191
AGENDA ITEM 5.1
24
not be deemed an obligation of the service supplier unless such tax is thereafter paid to
the service supplier.
B. If any service supplier fails to collect the tax (by failing to properly assess the
tax on one or more services or charges on the service user’s billing) or fails to remit any
collected tax imposed by this chapter to the city within the time required, or if any
service user subject to Section 3.22.060 of this chapter fails to remit any tax due within
the time required, said person shall pay a penalty for such delinquencies at the rate as
set forth by resolution of the City Council of the total tax that is delinquent in the
remittance, and shall pay interest at the rate as set forth by resolution of the City
Council, on the amount of the tax, exclusive of penalties, from the date on which the
remittance first became delinquent, until paid.
C. The Tax Administrator shall have the power to impose additional penalties
upon persons required to collect and/or remit taxes pursuant to the provisions of this
Chapter for fraud or gross negligence in reporting or remitting at the rate as set forth by
resolution of the City Council of the amount of the tax collected and/or required to be
remitted, or as recomputed by the Tax Administrator.
D. For collection purposes only, every penalty imposed and such interest that is
accrued under the provisions of this section shall become a part of the tax herein
required to be paid.
E. Notwithstanding the foregoing, the Tax Administrator may, in his or her
discretion, modify the due dates of this chapter to be consistent with any uniform
standards or procedures that are mutually agreed upon by other public agencies
imposing a utility users tax, or otherwise legally established, to create a central payment
location or mechanism.
3.22.160 Deficiency Determination and Assessment – Tax Application Errors.
A. The Tax Administrator shall make a deficiency determination if he or she
determines that any person required to collect or self-collect taxes pursuant to the
provisions of this Chapter has failed to collect and remit the proper amount of tax by
improperly or failing to apply the tax to one or more taxable services or charges.
Nothing herein shall require the tax administrator to institute proceedings under this
section if, in the opinion of the tax administrator, the cost of collection or enforcement
likely outweighs the tax benefit.
B. The Tax Administrator shall mail a notice of such deficiency determination to
the person required to pay or remit the tax, which notice shall refer briefly to the amount
of the taxes owed, plus penalties and interest at the rate as set forth by resolution of the
City Council, on the amount of the tax from the date on which the tax should have been
received by the City. Within fourteen (14) calendar days after the date of service of
such notice, the person may request in writing to the Tax Administrator for a hearing on
the matter. If the person fails to request a hearing within the prescribed time period, the
PACKET PAGE: 192
AGENDA ITEM 5.1
25
amount of the deficiency determination shall become a final assessment, and shall
immediately be due and owing to the City.
C. If the person requests a hearing, the Tax Administrator shall cause the matter
to be set for hearing, which shall be held within thirty (30) calendar days after receipt of
the written request for hearing. Notice of the time and place of the hearing shall be
mailed by the Tax Administrator to such person at least ten (10) calendar days prior to
the hearing, and, if the Tax Administrator desires said person to produce specific
records at such hearing, such notice may designate the records requested to be
produced.
D. At the time fixed for the hearing, the Tax Administrator shall hear all relevant
testimony and evidence, including that of any other interested parties. At the discretion
of the Tax Administrator, the hearing may be continued from time to time for the
purpose of allowing the presentation of additional evidence. Within a reasonable time
following the conclusion of the hearing, the Tax Administrator shall issue a final
assessment (or non-assessment), thereafter, by confirming, modifying or rejecting the
original deficiency determination, and shall mail a copy of such final assessment to the
person owing the tax. The decision of the Tax Administrator may be appealed pursuant
to Section 3.22.220 of this Chapter. Filing an application with the Tax Administrator and
appeal to the City Manager pursuant to Section 3.22.220 of this Chapter is a
prerequisite to a suit thereon.
E. Payment of the final assessment shall become delinquent if not received by
the Tax Administrator on or before the thirtieth (30th) calendar day following the date of
receipt of the notice of final assessment. The penalty for delinquency shall be at the
rate as set forth by resolution of the City Council on the total amount of the assessment,
along with interest at the rate as set forth by resolution of the City Council, on the
amount of the tax, exclusive of penalties, from the date of delinquency, until paid. The
applicable statute of limitations regarding a claim by the City seeking payment of a tax
assessed under this Section shall commence from the date of delinquency as provided
in this subsection.
F. All notices under this section may be sent by regular mail, postage prepaid,
and shall be deemed received on the third (3rd) calendar day following the date of
mailing, as established by a proof of mailing.
3.22.170 Administrative Remedy - Non-Paying Service Users.
A. Whenever the Tax Administrator determines that a service user has
deliberately withheld the amount of the tax owed by the service user from the amounts
remitted to a person required to collect the tax, or whenever the Tax Administrator
deems it in the best interest of the City, he or she may relieve such person of the
obligation to collect the taxes due under this Chapter from certain named service users
for specific billing periods. Whenever the service user has failed to pay the amount of
tax owed for a period of two (2) or more billing periods, the service supplier shall be
relieved of the obligation to collect taxes due. The service supplier shall provide the City
PACKET PAGE: 193
AGENDA ITEM 5.1
26
with the names and addresses of such service users and the amounts of taxes owed
under the provisions of this Chapter. Nothing herein shall require the tax administrator
to institute proceedings under this section if, in the opinion of the tax administrator, the
cost of collection or enforcement likely outweighs the tax benefit.
B. In addition to the tax owed, the service user shall pay a delinquency penalty
at the rate as set forth by resolution of the City Council of the total tax that is owed, and
shall pay interest at the rate as set forth by resolution of the City Council, on the amount
of the tax, exclusive of penalties, from the due date, until paid.
C. The Tax Administrator shall notify the non-paying service user that the Tax
Administrator has assumed the responsibility to collect the taxes due for the stated
periods and demand payment of such taxes, including penalties and interest. The
notice shall be served on the service user by personal delivery or by deposit of the
notice in the United States mail, postage prepaid, addressed to the service user at the
address to which billing was made by the person required to collect the tax; or, should
the service user have a change of address, to his or her last known address.
D. If the service user fails to remit the tax to the Tax Administrator within thirty
(30) calendar days from the date of the service of the notice upon him or her, the Tax
Administrator may impose an additional penalty of twenty-five percent (15%) of the
amount of the total tax that is owed. The penalty shall become part of the tax herein
required to be paid.
3.22.180 Actions to collect. Any tax required to be paid by a service user under the
provisions of this Chapter shall be deemed a debt owed by the service user to the City.
Any such tax collected from a service user which has not been remitted to the Tax
Administrator shall be deemed a debt owed to the City by the person required to collect
and remit and shall no longer be a debt of the service user. Any person owing money to
the City under the provisions of this Chapter shall be liable to an action brought in the
name of the City for the recovery of such amount, including penalties and interest as
provided for in this Chapter, along with any collection costs incurred by the City as a
result of the person’s noncompliance with this Chapter, including, but not limited to,
reasonable attorneys fees and court costs. Any tax required to be collected by a
service supplier or owed by a service user is an unsecured priority excise tax obligation
under 11 U.S.C. §507(a)(8)(C). Service suppliers who seek to collect charges for
service in bankruptcy proceedings shall also include in any such claim the amount of
taxes due the city for those services, unless the tax administrator determines that such
duty is in conflict with any federal or state law, rule, or regulation or that such action
would be administratively impractical.
3.22.190 Additional Powers and Duties of Tax Administrator.
A. The Tax Administrator shall have the power and duty, and is hereby directed,
to enforce each and all of the provisions of this Chapter.
PACKET PAGE: 194
AGENDA ITEM 5.1
27
B. The Tax Administrator may adopt administrative rules and regulations not
inconsistent with provisions of this Chapter for the purpose of interpreting, clarifying,
carrying out and enforcing the payment, collection and remittance of the taxes herein
imposed. A copy of such administrative rules and regulations shall be on file in the Tax
Administrator's office. To the extent that the tax administrator determines that the tax
imposed under this chapter shall not be collected in full for any period of time from any
particular service supplier or service user, that determination shall be considered an
exercise of the tax administrator’s discretion to settle disputes and shall not constitute a
change in taxing methodology for purposes of Government Code Section 53750 or
otherwise. The tax administrator is not authorized to amend the city’s taxing
methodology for purposes of Government Code Section 53750, and the city does not
waive or abrogate its ability to impose the utility users’ tax in full as a result of
promulgating administrative rulings or entering into agreements.
C. Upon a proper showing of good cause, the Tax Administrator may make
administrative agreements, with appropriate conditions, to vary from the strict
requirements of this Chapter and thereby: (a) conform to the billing procedures of a
particular service supplier (or service user subject to Section 3.22.060 of this Chapter)
so long as said agreements result in the collection of the tax in conformance with the
general purpose and scope of this Chapter; or, (b) to avoid a hardship where the
administrative costs of collection and remittance greatly outweigh the tax benefit. A
copy of each such agreement shall be on file in the Tax Administrator's office, and are
voidable by the Tax Administrator or the City at any time.
D. The Tax Administrator may conduct an audit, to ensure proper compliance
with the requirements of this Chapter, of any person required to collect and/or remit a
tax pursuant to this Chapter. The Tax Administrator shall notify said person of the
initiation of an audit in writing. In the absence of fraud or other intentional misconduct,
the audit period of review shall not exceed a period of three (3) years next preceding the
date of receipt of the written notice by said person from the Tax Administrator. Upon
completion of the audit, the Tax Administrator may make a deficiency determination
pursuant to Section 3.22.160 of this Chapter for all taxes, penalties and interest owed
and not paid, as evidenced by information provided by such person to the Tax
Administrator. If said person is unable or unwilling to provide sufficient records to
enable the Tax Administrator to verify compliance with this Chapter, the Tax
Administrator is authorized to make a reasonable estimate of the deficiency. Said
reasonable estimate shall be entitled to a rebuttable presumption of correctness.
E. Upon receipt of a written request of a taxpayer, and for good cause, the Tax
Administrator may extend the time for filing any statement required pursuant to this
Chapter for a period of not to exceed sixty (60) calendar days, provided that the time for
filing the required statement has not already passed when the request is received. No
penalty for delinquent payment shall accrue by reason of such extension. Interest shall
accrue during said extension at the rate of three-quarters of one percent (¾%) per
month, prorated for any portion thereof.
PACKET PAGE: 195
AGENDA ITEM 5.1
28
F. The Tax Administrator shall determine the eligibility of any person who
asserts a right to exemption or suspension from, or a refund of, the tax imposed by this
Chapter.
G. The Tax Administrator or the City Manager, with the written approval of the
City Attorney, may compromise a claim pursuant to this Chapter where the portion of
the claim proposed to be released is equal to or less than the amount set by ordinance
or resolution of the City Council relating to the settlement of general liability claims
against the City and, with the approval of the City Attorney and the City Council, may
compromise such a claim where the portion proposed to be released is greater than the
amount set by ordinance or resolution of the City Council relating to the settlement of
general liability claims against the City by the Tax Administrator or City Manager.
H. Notwithstanding any provision in this Chapter to the contrary, the Tax
Administrator may waive any penalty or interest imposed upon a person required to
collect and/or remit for failure to collect the tax imposed by this Chapter if the non-
collection occurred in good faith. In determining whether the non-collection was in good
faith, the Tax Administrator shall take into consideration industry practice or other
precedents.
I. The tax administrator may, from time to time, survey the various service
suppliers to identify residential and business customers in the city, and the charges
therefor, including those items that are mandated by state or federal regulatory
agencies as a condition of providing such services. The tax administrator may,
thereafter, issue and disseminate to such service suppliers administrative rulings
identifying those components and items which are subject to the tax. If any nontaxable
charges are bundled with and not separately stated from taxable service charges on the
customer bill or invoice of a service supplier, the combined charge is subject to tax
unless the service supplier identifies, by reasonable and verifiable standards, the
portions of the combined charge that are nontaxable and taxable through the service
supplier's books and records kept in the regular course of business, and in accordance
with generally accepted accounting principles, and not created and maintained for tax
purposes. The service supplier has the burden of proving the proper apportionment of
taxable and non-taxable charges. If the service supplier offers a combination of taxable
and non-taxable services, and the charges are separately stated, then for taxation
purposes, the values assigned the taxable and non-taxable services shall be based on
its books and records kept in the regular course of business and in accordance with
generally accepted accounting principles, and not created and maintained for tax
purposes. The service supplier has the burden of proving the proper valuation of the
taxable and non-taxable services.
3.22.200 Records.
A. It shall be the duty of every person required to collect and/or remit to the City
any tax imposed by this Chapter to keep and preserve, for a period of at least three (3)
years, all records as may be necessary to determine the amount of such tax as he/she
may have been liable for the collection of and remittance to the Tax Administrator,
PACKET PAGE: 196
AGENDA ITEM 5.1
29
which records the Tax Administrator, or the Tax Administrator's designated
representative, shall have the right to inspect at a reasonable time.
B. The City may issue an administrative subpoena to compel a person to deliver,
to the Tax Administrator, copies of all records deemed necessary by the Tax
Administrator to establish compliance with this Chapter, including the delivery of records
in a common electronic format on readily available media if such records are kept
electronically by the person in the usual and ordinary course of business. As an
alternative to delivering the subpoenaed records to the Tax Administrator on or before
the due date provided in the administrative subpoena, such person may provide access
to such records outside the City on or before the due date, provided that such person
shall reimburse the City for all reasonable travel expenses incurred by the City to
inspect those records, including travel, lodging, meals, and other similar expenses, but
excluding the normal salary or hourly wages of those persons designated by the City to
conduct the inspection.
C. The Tax Administrator, or the Tax Administrator's designated representative,
is authorized to execute a non-disclosure agreement approved by the City Attorney to
protect the confidentiality of customer information pursuant to California Revenue and
Tax Code Sections 7284.6 and 7284.7. The Tax Administrator, or the Tax
Administrator's designated representative, may request from a person providing
transportation services of gas or electricity to service users within the City a list of the
names and addresses, and other pertinent information, of its transportation customers
within the City pursuant to Section 6354(e) of the California Public Utilities Code.
D. If a service supplier uses a billing agent or billing aggregator to bill, collect,
and/or remit the tax, the service supplier shall: i) provide to the Tax Administrator the
name, address and telephone number of each billing agent and billing aggregator
currently authorized by the service supplier to bill, collect, and/or remit the tax to the
City; and, ii) upon request of the Tax Administrator, deliver, or effect the delivery of, any
information or records in the possession of such billing agent or billing aggregator that,
in the opinion of the Tax Administrator, is necessary to verify the proper application,
calculation, collection and/or remittance of such tax to the City.
E. If any person subject to record-keeping under this section unreasonably
denies the Tax Administrator, or the Tax Administrator's designated representative,
access to such records, or fails to produce the information requested in an
administrative subpoena within the time specified, then the Tax Administrator may
impose a penalty of five hundred dollars ($500) on such person for each day following:
i) the initial date that the person refuses to provide such access; or, ii) the due date for
production of records as set forth in the administrative subpoena. This penalty shall be
in addition to any other penalty imposed under this Chapter.
3.22.210 Refunds. Whenever the amount of any tax has been overpaid or paid more
than once or has been erroneously or illegally collected or received by the Tax
Administrator under this Chapter, it may be refunded as provided in this section:
PACKET PAGE: 197
AGENDA ITEM 5.1
30
A. The Tax Administrator or City Manager may refund any tax that has been
overpaid, paid more than once, or has been erroneously or illegally collected or
received by the Tax Administrator under this Chapter, provided that no refund shall be
paid under the provisions of this section unless the claimant or his or her guardian,
conservator, executor or administrator has submitted a written claim, under penalty of
perjury, to the Tax Collector. The period for filing a claim for refund shall be one (1)
year from the time the tax was paid or erroneously or illegally collected; provided
however, that in no event shall the period to file such claim expire prior to the shortest
period allowable for filing a tax refund claim under Title 1, Division 3.6, Part 3, Section
911.2 of the California Government Code. Such claim must clearly establish claimant's
right to the refund by written records showing entitlement thereto, and must clearly set
forth the facts and legal theories under which the claimant believes he or she has right
to a refund. Nothing herein shall permit the filing of a refund claim on behalf of a class
or group of taxpayers, unless each member of the class has submitted a written claim
under penalty of perjury as provided by this subsection. Where the amount of any
individual refund claim is in excess of the amount set by ordinance or resolution of the
City Council relating to the settlement of general liability claims against the City by the
Tax Administrator or City Manager, City Council approval shall be required.
B. The filing of a written claim pursuant to Government Code Section 935 is a
prerequisite to any suit thereon. Any action brought against the City pursuant to this
section shall be subject to the provisions of Government Code Sections 945.6 and 946.
C. Notwithstanding the notice provisions of subsection (A), a service supplier
that has collected any amount of tax in excess of the amount of tax imposed by this
Chapter and actually due from a service user (whether due to overpayment or
erroneous or illegal collection of said tax), may refund such amount to the service user,
or credit to charges subsequently payable by the service user to the service supplier,
and claim credit for such overpayment against the amount of tax which is due upon any
other monthly returns to the Tax Administrator, provided such credit is claimed in a
return dated no later than one (1) year from the date of overpayment or erroneous or
illegal collection of said tax. The Tax Administrator shall determine the validity of the
service user’s claim of credit, and the underlying basis for such claim.
D. Notwithstanding the notice provisions of subsection (A), in the event that a
service supplier, or a person required to self-impose a tax imposed by this Chapter,
remits a tax to the City in excess of the amount of tax imposed by this Chapter, said
service supplier, or a person required to self-impose a tax imposed by this Chapter, may
claim credit for such overpayment against the amount of tax which is due upon any
other monthly returns to the Tax Administrator, provided such credit is claimed in a
return dated no later than one (1) year from the date of overpayment of said tax, and
provided that the Finance Director shall first determine the validity of the service user’s
claim of credit, and the underlying basis for such claim.
PACKET PAGE: 198
AGENDA ITEM 5.1
31
3.22.220 Appeals.
A. The provisions of this section apply to any decision, deficiency determination,
assessment, or administrative ruling of the Tax Administrator. Any person aggrieved by
any decision, deficiency determination, assessment, or administrative ruling of the Tax
Administrator, shall be required to comply with the appeals procedure of this section.
Compliance with this section shall be a prerequisite to a suit thereon. [See Government
Code Section 935(b).]
B. If any person is aggrieved by any decision, deficiency determination,
assessment, or administrative ruling of the Tax Administrator; he or she may appeal to
the City Manager by filing a notice of appeal with the City Clerk within fourteen (14)
calendar days of the date of the decision, deficiency determination, assessment, or
administrative ruling of the Tax Administrator which aggrieved the service user or
service supplier.
C. The matter shall be set for hearing no more than thirty (30) calendar days from
the receipt of the appeal. The appellant shall be served with notice of the time and
place of the hearing, as well as any relevant materials, at least five (5) calendar days
prior to the hearing. The hearing may be continued from time to time upon mutual
consent. At the time of the hearing, the appealing party, the Tax Administrator, and any
other interested person may present such relevant evidence as he or she may have
relating to the determination from which the appeal is taken.
D. Based upon the submission of such evidence and the review of the City’s
files, the City Manager shall issue a written notice and order upholding, modifying or
reversing the determination from which the appeal is taken. The notice shall be given
within fourteen (14) calendar days after the conclusion of the hearing and shall state the
reasons for the decision. The notice shall specify that the decision is final and that any
petition for judicial review shall be filed within ninety (90) days from the date of the
decision in accordance with Code of Civil Procedure Section 1094.6. If the City
Manager fails or refuses to act on an appeal within the fourteen (14) day period, the
appeal shall be deemed to have been denied by the City Manager on the fifteen (15th)
calendar day.
E. All notices under this section may be sent by regular mail, postage prepaid,
and shall be deemed received on the third (3rd) calendar day following the date of
mailing, as established by a proof of mailing.
3.22.230 No Injunction/Writ of Mandate. No injunction or writ of mandate or other legal
or equitable process shall issue in any suit, action, or proceeding in any court against
this City or against any officer of the City to prevent or enjoin the collection under this
Chapter of any tax or any amount of tax required to be collected and/or remitted.
PACKET PAGE: 199
AGENDA ITEM 5.1
32
3.22.240 Remedies Cumulative. All remedies and penalties prescribed by this Chapter
or which are available under any other provision of law or equity, including but not
limited to the California False Claims Act (Government Code Section 12650 et seq.) and
the California Unfair Practices Act (Business and Professions Code Section 17070 et
seq.), are cumulative. The use of one or more remedies by the City shall not bar the
use of any other remedy for the purpose of enforcing the provisions of this Chapter.
3.22.250 Notice of Changes to Ordinance.
A. Service suppliers and service users who self-collect shall begin to collect the
tax imposed by this chapter as soon as feasible after the effective date of the ordinance
codified in this chapter, but in no event later than permitted by Section 799 of the
California Public Utilities Code.
B. If a tax under this chapter is added, increased, reduced, or the tax base is
changed, the Tax Administrator shall follow the notice requirements of California Public
Utilities Code Section 799. Prior to the effective date of the change, the service supplier
shall provide the Tax Administrator with a copy of any written procedures describing the
information that the service supplier needs to implement the change. If the service
supplier fails to provide such written instructions, the Tax Administrator, or his or her
agent, shall send, by first class mail, a copy of the change to all collectors and remitters
of the City’s utility users taxes according to the latest payment records of the Tax
Administrator.
3.22.260 Penalties. Any person violating any of the provisions of this Chapter shall be
deemed guilty of a misdemeanor or an infraction at the discretion of the City Attorney.
3.22.270 Future Amendment to Cited Statute. Unless specifically provided otherwise,
any reference to a state or federal statute in this Chapter shall mean such statute as it
may be amended from time to time; provided, that such reference to a statute herein
shall not include any subsequent amendment thereto, or to any subsequent change of
interpretation thereto by a state or federal agency or court of law, to the extent that such
amendment or change of interpretation would require voter approval under California
law, or to the extent that such change would result in a tax decrease (as a result of
excluding all or a part of a utility service, or charge therefor, from taxation). Only to the
extent voter approval would otherwise be required or a tax decrease would result, the
prior version of the statute (or interpretation) shall remain applicable. For any
application or situation that would not require voter approval or would not result in a
decrease of a tax, provisions of the amended statute (or new interpretation) shall be
applicable to the maximum possible extent. To the extent that the city’s authorization
to collect or impose any tax imposed under this chapter is expanded or limited as a
result of changes in state or federal law, no amendment or modification of this chapter
shall be required to conform the tax to those changes, and the tax shall be imposed and
collected to the full extent of the authorization up to the full amount of the tax imposed
under this chapter.
PACKET PAGE: 200
AGENDA ITEM 5.1
33
3.22.280 Independent Audit of Tax Collection, Exemption, Remittance, and
Expenditure. The City shall annually verify that the taxes owed under this Chapter have
been properly applied, exempted, collected, and remitted in accordance with this
Chapter, and properly expended according to applicable municipal law. The verification
shall be performed by a qualified independent third party and the review shall employ
reasonable, cost-effective steps to assure compliance, including the use of sampling
audits. The verification shall not be required of tax remitters where the cost of the
verification may exceed the tax revenues to be reviewed. The results of each review
shall be published in an annual expenditure report.
3.22.290 Amendment or Repeal – Adjustment of Taxing Rate or Methodology. This
chapter may be repealed or amended by the city council without a vote of the people.
However, as required by California Constitution Article XIIIC (Proposition 218), voter
approval is required for any amendment or provision that would increase the maximum
rate or methodology of any tax levied pursuant to this chapter. The people of the city of
San Jacinto affirm that the following actions shall not constitute an increase of the rate
or methodology of the utility users tax requiring subsequent voter approval:
1. The restoration of the rate of the tax to a rate that is no higher than the maximum
set by this voter-approved chapter, if the city council has previously acted to reduce the
rate of the tax;
2. An action that interprets or clarifies the methodology of the tax, or any definition
applicable to the tax, so long as interpretation or clarification (even if contrary to some
prior interpretation or clarification) is not inconsistent with the language of this chapter;
3. The establishment of a class of person or service that is exempt or excepted from
the tax or the discontinuation of any such exemption or exception (other than the
discontinuation of an exemption or exception explicitly set forth in this chapter); and
4. Resuming collection of the tax imposed by this chapter, even if the city had, for
some period of time, either suspended collection of the tax or otherwise failed to collect
the tax, in whole or in part.
3.22.300 Sunset of Tax. The tax imposed by this chapter shall automatically be
terminated, without further action by the city council, or the electors of the city, ten (10)
years after the effective date of this ordinance. After said date, the tax imposed by this
chapter can only be continued or reestablished by a majority vote of San Jacinto voters
pursuant to California Propositions 62 and 218."
SECTION 2. If any section, subsection, sentence, clause, phrase or word of
this Ordinance is for any reason held to be invalid or unconstitutional by the decision of
any court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The People of San Jacinto hereby declare that
they would have adopted this Ordinance, and each and every section, subsection,
sentence, clause, or phrase not declared invalid or unconstitutional without regard to
PACKET PAGE: 201
AGENDA ITEM 5.1
34
whether any portion or the Ordinance would be subsequently declared invalid or
unconstitutional.
SECTION 3. Following certification that the citizens of San Jacinto have
approved this Ordinance, the Mayor shall sign it attesting to its adoption by the People
voting thereon at the November 4, 2014 Election, and the City Clerk shall cause the
same to be entered in the book of original ordinances of said City; and shall cause the
same, or a summary thereof, to be published as required by law. .
SECTION 4. This Ordinance shall take effect only if approved by a majority of
the eligible voters of the City of San Jacinto voting at a General Municipal election to be
held on November 4, 2014, and shall take effect ten (10) days after the City Council has
certified the results of the General Municipal election by resolution.
PASSED, APPROVED AND ADOPTED by the People of the City of San Jacinto
on November 4, 2014.
City of San Jacinto
______________________________
By: Alonso Ledezma, Mayor
ATTEST:
______________________________________
Rick Miller, City Clerk
APPROVED AS TO FORM:
______________________________________
Best Best & Krieger LLP
City Attorney
PACKET PAGE: 202
AGENDA ITEM 5.1
STATE OF CALIFORNIA ) RESOLUTION NO. 3526
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
JACINTO, CALIFORNIA, REQUESTING THE BOARD OF
SUPERVISORS OF THE COUNTY OF RIVERSIDE TO CONSOLIDATE
A GENERAL MUNICIPAL TAX ELECTION TO BE HELD ON
NOVEMBER 4, 2014 WITH THE STATEWIDE GENERAL ELECTION TO
BE HELD ON THAT DATE PURSUANT TO §10403 OF THE
ELECTIONS CODE
WHEREAS, on August 5, 2014, the City Council of the City of San Jacinto called
a General Municipal Tax Election to be held on November 4, 2014; for the purpose of
submitting to the voters the question relating to the Utility Users Tax; and;
WHEREAS, it is desirable that the General Municipal Tax Election be
consolidated with the Statewide General election to be held on the same date and that
within the city; the precincts, polling places and election officers of the two elections be
the same, and that the election department of the County of Riverside canvass the
returns of the General Municipal Tax Election and that the election be held in all
respects as if there were only one election.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JACINTO
DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Request for Consolidation. Pursuant to the requirements of
§10403 of the Elections Code, the Board of Supervisors of the County of Riverside is
hereby requested to consent and agree to the consolidation of a General Municipal Tax
Election with the Statewide General election on Tuesday, November 4, 2014, for the
purpose of submitting to the voters the question relating to the Utility User Tax.
Section 2. Measure Language. A measure is to appear on the ballot as
follows:
“San Jacinto City Services Stability Measure. To maintain
current police, firefighter and paramedic service levels,
maintain 9-1-1 emergency response times, maintain
operational levels for existing neighborhood fire stations,
parks, community buildings and infrastructure, and create
jobs; shall the City of San Jacinto establish a 6.5% Utility
Users Tax for 10 years on utility services within the City, while
exempting low-income seniors, requiring annual audits and
allowing no tax rate increase without voter approval?”
Yes
No
PACKET PAGE: 203
AGENDA ITEM 5.1
2
Section 3. Canvass of Returns. The County election department is
authorized to canvass the returns of the General Municipal Tax Election. The election
shall be held in all respects as if there were only one election, and only one form of
ballot shall be used.
Section 4. Necessary Steps. The Board of Supervisors is requested to issue
instructions to the County election department to take any and all steps necessary for
the holding of the consolidated election.
Section 5. Costs. The City of San Jacinto recognizes that additional costs will
be incurred by the County by reason of this consolidation and agrees to reimburse the
County for any costs.
Section 6. Filing of Resolution. The City Clerk is hereby directed to file a
certified copy of this resolution with the Board of Supervisors and the election
department of the County of Riverside.
Section 7. Certification. The City Clerk shall certify to the passage and
adoption of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED AND ADOPTED this 5th day of August, 2014.
_____________________________
By: Alonso Ledezma, Mayor
ATTEST:
_______________________
Rick Miller, City Clerk
APPROVED AS TO FORM:
_____________________________
Best Best & Krieger LLP
City Attorney
PACKET PAGE: 204
AGENDA ITEM 5.1
3
I, _________________, City Clerk of the City of San Jacinto, do hereby certify
that the foregoing resolution is the actual resolution duly and regularly adopted by the
City Council at a regular meeting on the 5th day of August, 2014, by the following vote
to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
_____________________________
City Clerk
PACKET PAGE: 205
AGENDA ITEM 5.1
STATE OF CALIFORNIA ) RESOLUTION NO. 3527
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
JACINTO, CALIFORNIA, PROVIDING FOR THE FILING OF PRIMARY
AND REBUTTAL ARGUMENTS AND SETTING RULES FOR THE
FILING OF WRITTEN ARGUMENTS REGARDING A CITY MEASURE
TO BE SUBMITTED AT THE NOVEMBER 4, 2014 GENERAL
MUNICIPAL ELECTION
WHEREAS, a General Municipal Election is to be held in the City of San Jacinto,
California on November 4, 2014, at which there will be submitted to the voters the
following measure:
“San Jacinto City Services Stability Measure. To maintain
current police, firefighter and paramedic service levels,
maintain 9-1-1 emergency response times, maintain
operational levels for existing neighborhood fire stations,
parks, community buildings and infrastructure, and create
jobs; shall the City of San Jacinto establish a 6.5% Utility
Users Tax for 10 years on utility services within the City, while
exempting low-income seniors, requiring annual audits and
allowing no tax rate increase without voter approval?”
Yes
No
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JACINTO,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
Section 1. Primary Arguments. That the City Council authorizes (i) all
members of the City Council, (ii) any individual voter eligible to vote on the above
Measure, (iii) a bona fide association of such citizens or (iv) any combination thereof, to
file a written argument in favor of or against the City Measure, accompanied by the
printed name(s) and signature(s) of the author(s) submitting it, in accordance with
Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, and to
change the argument until and including the date fixed below by the City Clerk, after
which no arguments for or against the City measure may be submitted to the City Clerk.
The deadline to submit arguments for or against the City Measure pursuant to
this Resolution is declared by the City Clerk to be August 19, 2014, at 5:00 p.m. Each
argument shall be filed with the City Clerk, signed, and include the printed name(s) and
signature(s) of the author(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 who is the author of the argument.
PACKET PAGE: 207
AGENDA ITEM 5.1
2
Section 2. Rebuttal Arguments. Pursuant to Section 9285 of the Elections
Code of the State of California, when the City Clerk has selected the primary arguments
for and against the City Measure(s) which will be printed and distributed to the voters,
the Clerk shall send copies of the primary argument in favor of the Measure(s) to the
authors of the primary argument against, and copies of the primary argument against to
the authors of the primary argument in favor. The authors or persons designated by
them may prepare and submit rebuttal arguments not exceeding 250 words. The
rebuttal arguments shall be filed with the City Clerk not later than August 28, 2014 at
5:00 p.m. Rebuttal arguments shall be printed in the same manner as the primary
arguments. Each rebuttal argument shall immediately follow the primary argument
which it seeks to rebut.
Section 3. Prior Resolutions. That all previous resolutions providing for the
filing of primary and rebuttal arguments related to City measures are repealed.
Section 4. November 4, 2014 Election. That the provisions of Sections 1 and
2 shall apply only to the election to be held on November 4, 2014, and shall then be
repealed.
Section 5. Certification. The City Clerk shall certify to the passage and
adoption of this resolution and enter it into the book of original Resolutions.
PASSED, APPROVED AND ADOPTED this 5th day of August, 2014.
_____________________________
By: Alonso Ledezma, Mayor
ATTEST:
_______________________
Rick Miller, City Clerk
APPROVED AS TO FORM:
_____________________________
Best Best & Krieger LLP
City Attorney
PACKET PAGE: 208
AGENDA ITEM 5.1
3
PACKET PAGE: 209
AGENDA ITEM 5.1
4
I, _________________, City Clerk of the City of San Jacinto, do hereby certify
that the foregoing resolution is the actual resolution duly and regularly adopted by the
City Council at a regular meeting on the 5th day of August, 2014, by the following vote
to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
_____________________________
City Clerk
PACKET PAGE: 210
AGENDA ITEM 5.1