City of El Cerrito

Measure H Ordinance - 2/3 Approval Required

BACKGROUND

The El Cerrito Swim Center is a much-loved community focal point that contributes to the quality of life and health and safety for thousands of residents and non-residents alike. On March 7, 2000, the voters of El Cerrito approved a special tax, Measure A, for the purpose of renovating and reconstructing the El Cerrito Swim Center, rehabilitation of Canyon Trail Clubhouse, and access improvements to the restrooms at Harding, Huber, and Poinsett Park Clubhouses. By the beginning of 2004, these projects were complete.

On June 4, 2007, the City Council voted to authorize the use of surplus funds generated from the Measure A Swim Center special tax for capital projects at the Swim Center. Since this time, several projects have been completed including the installation of the Splash Park, the purchase of new energy efficient heaters, landscape improvements, and energy efficiency upgrades such as the installation of variable speed drives (smart pump) and the installation of LED lights throughout the Swim Center. Surplus funds are also used to pay for the Swim Center’s portion of the Solar Lease Debt Service for the solar panels in the Swim Center parking lot. Most recently Measure A funds were utilized to renovate the locker rooms to correct safety issues and improve accessibility.

In total Measure A funds have saved the General Fund over $2.2 million dollars in capital expenditures, in addition to savings generated by energy efficiency upgrades that provide ongoing savings to the City’s utilities budget. Measure A will sunset on June 30, 2020. After this date, unless Measure A is renewed or another funding source is secured, the capital equipment and infrastructure needs at the Swim Center will need to be funded from the City’s General Fund in order to keep it safe, functioning, and up to the standards that residents desire.

On April 2, 2019, the City Council adopted the El Cerrito Parks and Recreation Facilities Master Plan (Master Plan) which was developed through an extensive public engagement process. The Master Plan also incorporated several related City plans that the City Council had already adopted. This Master Plan effort verified that the City’s parks and recreation network is highly valued and receives active community use. However, aging amenities, significant deferred maintenance, and limited opportunity for program expansion will negatively impact the City’s provision of recreation services to the community in the near and long term. Additional funding is needed to address these deficiencies and to provide program space for relevant recreation services for youth, teens, and adults, which emerged as high priorities as part of the community engagement and recreation assessment. The Parks and Recreation Facilities Master Plan is online at www.el-cerrito.org/ParksMP, the Executive Summary is attached to this report (Attachment 2).

The Master Plan establishes a number of goals, policies and actions to guide its recommendations and to address present and future needs. The overarching goals are:

• Goal A: Enhance El Cerrito’s Park Network

• Goal B: Enhance El Cerrito’s Recreation Facilities

• Goal C: Support Recreation Programs

• Goal D: Improve Pathways and Trails

• Goal E: Improve Natural Areas

  El Cerrito’s park and recreation system encompasses 16 City parks, one greenway, two special-use open spaces, the Swim Center, and 15 recreation buildings. The City maintains and operates 175 acres of parkland, of which 102 acres remain dedicated open space. The City owns 155 acres of parkland and maintains 20 acres of parkland that is owned by the West Contra Costa Unified School District (WCCUSD) (6.5 acres), the City of Richmond (1.5 acres), and BART (12 acres). The Master Plan identified a total of 180 projects and implementation activities to meet community expectations for the City’s park and recreational facilities.

  The Master Plan also described several potential funding sources and provides a conceptual financing strategy, including phasing the project recommendations over a 20-year time frame to correspond with potential revenue enhancements and the availability of bond funding. A major component of this financing strategy is the renewal of the Measure A special tax, to not only maintain the Swim Center over the next 20+ years but also to help implement many of the Master Plan’s priorities and projects.

CITY OF EL CERRITO MEASURE __CITY ATTORNEY’S IMPARTIAL ANALYSIS

The City Council of the City of El Cerrito placed Measure __ on the November 5, 2019, ballot to ask voters to continue an existing parcel tax at current rates to fund maintenance and enhancement of City parks and recreational facilities. The existing tax will expire on June 30, 2020.

In 2000, the El Cerrito voters approved Measure A, authorizing a tax on all types of property in the City to fund the renovation and reconstruction of the El Cerrito Swim Center, the rehabilitation of Canyon Trail Clubhouse, and the performance of access and restroom renovations to the Harding, Huber, and Poinsett Park Clubhouses. Once those projects were completed, tax revenue was used for capital improvements at the Swim Center, including the installation of the Splash Park, new heaters, landscape improvements, and energy efficiency upgrades.

In April 2019, the City Council approved the Parks and Recreation Facilities Master Plan(“Master Plan”), which outlined multiple goals, priorities, and projects for City parks and open spaces. Measure __ would restrict the use of revenue from the tax for the maintenance andenhancement of the City’s park and recreation facilities described in the Master Plan, as it may be amended by the City Council. The Master Plan identified a total of 180 projects andimplementation activities to meet community expectations for the City’s park and recreationalfacilities. Examples of priority projects include maintaining and improving the Swim Center pools, locker rooms and restrooms; protecting natural areas, greenways, and open space; increasing urban forest and vegetation management, including fire hazard reduction; maintaining and improving program space for children, families, adults, and seniors; maintaining and improving City parks, paths, and playfields; replacing aging playgrounds and improving safety with new fall surfaces; addressing recreation facilities seismic issues; upgrading irrigation systems to conserve water; and improving trash and litter clean-up.

As a special tax, Measure __ revenue would be placed into a special account and restricted to the purposes listed above and described further in the ordinance included in the voter information guide.

Measure __ requires the City's independent auditors to prepare an annual report reviewing the collection, management, and expenditure of revenue from the tax. The City’s Financial Advisory Board would review the report as part of its review of the City’s annual audit.

The measure does not include an automatic sunset in a term of years. Instead, it states that tax would continue until repealed or amended by El Cerrito voters.

Measure __ would authorize continuing the existing tax at current rates, which are $58.46/unit for single-family properties, $45/unit for multi-family properties, and $410/acre or portion thereof for nonresidential properties. The measure is estimated to produce $650,000 annually.

A “Yes” vote is a vote to approve the continuation of a parcel tax at existing rates to fund maintenance and enhancement of El Cerrito parks and recreational facilities. A “No” vote is avote against the tax. Measure __ would be approved if it received at least a two-thirds majorityof “Yes” votes.

Sky Woodruff, City Attorney City of El Cerrito

ORDINANCE NO. 2019-06

AN ORDINANCE OF THE CITY OF EL CERRITO AUTHORIZING A SPECIAL TAX ON REAL PROPERTY LOCATED IN EL CERRITO TO FUND PARKS AND RECREATION FACILITIES MAINTENANCE AND ENHANCEMENT AND AMENDING AND RESTATING CHAPTER 4.56 OF THE EL CERRITO MUNICIPAL CODE

WHEREAS, El Cerrito residents highly value the preservation and maintenance of City parks and recreation facilities as prominent aspects of quality of life and a high priority for the City to ensure access to a wide variety of recreational opportunities within the City including both public park and open space areas that also help protect our local environment; and

WHEREAS, the City maintains 16 City parks, one greenway, two special-use open spaces, the Swim Center, and 15 recreation buildings. The City maintains and operates 175 acres of parkland, of which 102 acres remain dedicated open space. Many acres of parkland, including the Madera Hillside portion of the Hillside Natural Area, the Dorothy Rosenberg Memorial Park, and Centennial Park are relatively new acquisitions and enhancements to El Cerrito’s park system with no additional resources available for their maintenance; and

WHEREAS, the City Council adopted the Parks and Recreation Facilities Master Plan on April 2, 2019, to identify community priorities, document deferred maintenance needs, and develop a funding strategy to implement its recommendations. The Master Plan identified the need for an additional $550,000 in landscape management funding, $250,000 for facility maintenance, and over $38 million dollars in deferred maintenance and enhancement; and

WHEREAS, El Cerrito, like all California cities, has faced declining revenues to address infrastructure and maintenance needs and fund enhancements to parks, recreation facilities, open space areas and trails; and

WHEREAS, without a dedicated source of funding to invest in maintenance and enhancement needs El Cerrito will be unable to fully address maintenance responsibilities in its parks and recreation facilities; and

WHEREAS, in 2000 voters in El Cerrito passed Measure A, a 20-year parcel tax that enabled the City to secure bonds to rebuild the El Cerrito Swim Center, renovate the Canyon Trail Clubhouse, and implement access improvements to the bathrooms at Harding, Huber and Poinsett Parks. In 2007 the City Council authorized excess proceeds to create a capital replacement and enhancement fund, consistent with the provisions of the voter approved Measure A, that, among other projects, funded significant and necessary capital equipment replacement and energy efficiency projects saving the City’s General Fund over $2.2 million in 10 years; and

Resolution 2019-50 Exhibit A

Resolution 2019-50 Exhibit A

WHEREAS, it is a priority of the City Council as identified in the City’s Strategic Plan, to rehabilitate public facilities as community focal points, identify and pursue funding sources and to develop financing plans to address deferred maintenance of facilities and infrastructure; and

WHEREAS, in addition to the Parks and Recreation Facilities Master Plan, the City has adopted a number of plans resulting in policies for the maintenance and enhancement of City infrastructure and property including the Urban Greening Plan, Climate Action Plan, Ohlone Greenway Master Plan, Active Transportation Plan, and San Pablo Avenue Specific Plan; and

WHEREAS, this ordinance would create a guaranteed source of local funding for the maintenance and enhancement of El Cerrito’s parks and recreation facilities that cannot be taken by the State of California and must be spent locally for El Cerrito residents; and

WHEREAS, this ordinance is enacted in accordance with the authority granted to cities by Article XI, Section 7, and Article XIIIA, Section 4, of the California Constitution and Government Code sections 50075 et seq.

THE PEOPLE OF THE CITY OF EL CERRITO DO ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The foregoing recitals are true and correct and made a part of this Ordinance.

SECTION 2. Amendment and Restatement of Municipal Code. Chapter 4.56 of the El Cerrito Municipal Code is hereby amended and restated to read as follows:

4.56 PARKS AND RECREATION FACILITIES MAINTENANCE AND ENHANCEMENT SPECIAL TAX

4.56.010 - Title

This Chapter shall be known as the “Parks and Recreation Facilities Maintenance and Enhancement Special Tax” or the “Swim Center Tax.”

4.56.020 – Definitions

1. “City” means the City of El Cerrito.

2. “Multi-family residential parcel” means a parcel that is zoned or used for

multi-family residential purposes and that has been assigned one of the following Contra Costa County usecodes: 21, 22, 23, 24, 25, 26, 27, 28, as they may be amended.

Resolution 2019-50 Exhibit A

C. “Nonresidential parcel” means a parcel that is zoned or used for purposes other than single-family or multi-family residential and that has been assigned one of the following Contra Costa County use codes: 31, 32, 33, 34, 35, 36, 41, 42, 43, 44, 46, 47, 48, 49, 53, 70, 71, 72, 74, 75, 76, 85, as they may be amended. A nonresidential parcel includes property that is designed, intended, or used for any purpose other than a residential use, including but not limited to, commercial, industrial, and office uses. A hotel or motel structure containing one or more residential units shall be treated as a nonresidential property.

D. “Owner” means the owner or owners of real property located within the City.

E. “Parcel” means any real property designated by an assessor’s parcel map and parcel number and shown on the equalized property tax roll of the County of Contra Costa as of January 1 of each fiscal year.

F. “Parks and recreation facilities” means the parks and recreation facilities described in the Parks and Recreation Facilities Master plan.

G. “Parks and Recreation Facilities Master Plan” means the Parks and Recreation Facilities Master Plan approved by the El Cerrito City Council on April 2, 2019, as it may be amended in the future.

H. “Single-family residential parcel” means a parcel zoned or used for single- family residential purposes and that has been assigned one of the following Contra Costa County use codes: 11, 12, 13, 14, 15, 19, 29, as they may be amended. A single family residential parcel may be improved with more than one unit.

1. “Special tax” means the special tax imposed by this Chapter.

2. “Tax Administrator” means the Finance Director or other City official

designated by the City Manager to administer the tax.

K. “Unit” means an individual residential living space. The number of units on a parcel may be determined by (1) referencing use code data, (2) site surveys and physical unit counts, (2) reviewing building permit data, or (4) determining the number homeowner exemptions reflected for an parcel in data of the Contra Costa County Assessor.

4.56.030 – Special Tax Imposed; Exemptions, Including for Low-Income and Seniors and Individuals with Disabilities

A. An annual special tax in the amounts set forth in Section 4.56.040 is hereby imposed on every taxable parcel of real property within the City. The special tax shall first be levied in fiscal year 2020-21.

B. The special tax constitutes a debt owed by the owner of each parcel of real property to the City.

Resolution 2019-50 Exhibit A

C. The special tax imposed by this Chapter shall be subject to the exemptions set forth in this section.

1. Real property otherwise wholly exempt from ad valorem tax by California or United States law shall also be exempt from any liability for the special tax.

2. The special tax shall not be imposed on vacant property or property under private ownership that is designated as open space in the El Cerrito General Plan, unless that property is used primarily for residential use.

3. Single-family residential parcels and units under separate ownership on multi-family residential parcels shall be exempt from the special tax if one of the owners qualifies for participation in either or both the Gonzales-Deukmejian-Petris Senior Citizen Property Tax Assistance Law (also known as the Senior Citizens Homeowners and Renters Property Tax Assistance Law and the Homeowners and Renters Property Tax Assistance Law) or the Senior Citizen Property Tax Postponement Law.

(a) Qualifying applicants must occupy the property and be at least partially legally responsible for payment of the ad valorem tax for the property.

(b) Applications may require proof that the State Controller’s Office or Franchise Tax Board has approved the applicant’s participation in either of the programs named in this section. Applications for this exemption must be submitted to the Tax Administrator in the manner and at the time established by the Tax Administrator. Applications shall be on forms provided by the Tax Administrator and shall provide such information as the Tax Administrator may require. If the Tax Administrator determines the need to audit an application, the Tax Administrator may require additional information, including, but not limited to, federal income tax returns and W-2 forms of owner-occupants eligible for this exemption.

4.56.040 – Special Tax Rates

A. The rates of the special tax for each parcel type shall be as set forth in the table below.

Parcel Type	County Use Code	Rate
Single-Family Residential	11, 12, 13, 14, 15, 19, 29	$58.46 per unit
Multi-Family Residential	21, 22, 23, 24, 25, 26, 27, 28	$45.00 per unit
Nonresidential	31, 32, 33, 34, 35, 36, 41, 42, 43, 44, 46, 47, 48, 49, 53, 70, 71, 72, 74, 75, 76, 85	$410 per acre or portion thereof
Non-taxable	10, 17, 18, 20, 30, 37, 38, 45, 50, 63, 77, 78, 79, 81, 83, 87, 89	$0.00

Resolution 2019-50 Exhibit A

B. If a single-family residential parcel contains more than one unit, including an accessory dwelling unit, the tax shall be calculated by multiplying the single-family residential rate by the number of units on the parcel.

C. If a parcel consists of both residential and nonresidential uses, the tax rate shall be determined by the use code assigned by the Contra Costa County Tax Assessor.

D. The tax rates stated in the table above are maximum rates. The City Council may, by resolution, increase or decrease the rate of the special tax for any or all categories, as long as it does not set a rate that exceeds the maximum stated in the table above. If for any fiscal year the City Council sets a lower tax rate, it may increase the tax rate in any subsequent year up to the maximum rate in the table above. No further voter approval shall be required for any adjustment of a tax rate under the authority granted by this section.

E. The assessment roll data of the Contra Costa County Tax Assessor as of January 1 of each year and City records shall be used to determine the actual use of each parcel of real property for purposes of determining the amount of the special tax for each parcel.

F. In the event that the Contra Costa County Tax Assessor adds new use codes, deletes use codes, or amends the use codes listed in the table above or in section 4.56.020, the Tax Administrator may determine what tax rate shall apply to a parcel based upon the new use code assigned, and the City Council may amend the table to reflect the use code changes.

G. For parcels divided by Tax Rate Area lines, the amount of the special tax for the portion of the parcel within Contra Costa County shall be calculated at the same rates as set forth above. For properties wholly within Contra Costa County and divided by Tax Rate Area lines into multiple parcels, the property shall be taxed as a single parcel at the rates set forth above.

4.56.050 – Collection of Special Tax

A. The special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes collected by the County of Contra Costa. The City Council may provide for other alternative methods of collection of the special tax by resolution.

B. The amount of the special tax, any penalty, and any interest imposed under the provisions of this Chapter shall be deemed a debt to the City. Any person owing money under the provisions of this Chapter shall be personally liable to an action brought in the name of the City, at its option, for the recovery for such amount.

4.56.060 – Use of Tax Revenue

A. Revenue from the special tax, including penalties and interest thereon, shall be used for the maintenance and enhancement of the City’s park and recreation facilities described in the Park and Recreation Facilities Master Plan. The Parks and Recreation Facilities Master Plan identified a total of 180 projects and implementation activities to meet community expectations for the City’s park and recreational facilities to be funded by the special tax. Examples of priority projects identified in the Parks and Recreation Facilities Master Plan include maintaining and improving the swim center pools, locker rooms and restrooms; protecting natural areas, greenways and open space; increasing urban forest and vegetation management including fire hazard reduction; maintaining and improving program space for children, families, adults and seniors; maintaining and improving City parks, paths, and playfields; replacing aging playgrounds and improving safety with new fall surfaces; addressing recreation facilities seismic issues; upgrading irrigation systems to conserve water; and improving trash and litter clean-up.

B. Inclusion of a project in the Parks and Recreation Facilities Master Plan does not require that each and every project be completed or undertaken in the time frame or exactly in the form described. The City Council may make adjustments reflecting opportunities that arise and changes in priorities that occur over the life of the Parks and Recreation Facilities Master Plan that are found to be consistent with the purpose of maintaining and enhancing parks and recreation facilities. As the Parks and Recreation Facilities Master Plan ages, the City Council may amend it to reflect changes in public priorities for parks and recreation facilities, the condition of parks and recreation facilities, the addition of new parks and recreation facilities, environmental changes and the need for adaptation of parks and recreation facilities, and other changes in circumstance, as long as the amendments do not result in the use of special tax revenue for purposes other than the maintenance and enhancement of parks and recreation facilities.

C. The City Council is authorized to incur indebtedness in the form of bonds, notes, contractual obligations or other evidences of indebtedness authorized by law to finance or refinance the costs of capital projects, including but not limited to parks and recreation facilities improvements; to pay any and all costs of issuing or incurring such indebtedness; and to fund reserve funds, capitalized interest, costs of credit enhancement, costs of interest rate hedging arrangements or any other financing costs associated with such indebtedness. Such indebtedness shall be solely payable from, and may be secured by a pledge and lien on, the proceeds of the special tax. The annual indebtedness, including principal and interest, shall not exceed the estimated annual proceeds of the special tax.

D. At the City Council’s discretion, revenue from the special tax, including penalties and interest thereon, may also be used to pay for the costs of holding an election to seek voter approval of this Chapter, for the costs of administering the special tax, and for the costs of defending the special tax and this Article, including attorneys’ fees and related costs.

Resolution 2019-50 Exhibit A

4.56.070 – Accountability

In accordance with the requirements of California Government Code Sections 50075.1 and 50075.3, the following accountability measures, among others, shall apply to the special tax:

A. A separate, special account, referred to as the Parks and Recreation Facilities Special Tax Fund, shall be created, into which the proceeds of the special tax, including penalties and interest earned on such proceeds, must be deposited.

B. The specific purposes of the special tax are for the funding of parks and recreation facilities maintenance and enhancement, administration, and legal fees as set forth in Section 4.56.060. The proceeds of the special tax shall be applied only to those specific purposes.

C. The Tax Administrator shall annually prepare and submit to the City Council a report regarding the special tax funds collected and expended, as well as any other information required by Government Code sections 50075.1 and 50075.3.

4.56.080 – Oversight and Annual Audit

Each year, as part of the audit of the City’s financial statements, the City's independent auditors shall complete a report reviewing the collection, management, and expenditure of revenue from the special tax. The report shall be reviewed by the Financial Advisory Board or successor agency designated by the City Council as part of its review of the annual audit.

4.56.090 – Interpretation, Administration, and Appeals of Special Tax

A. Any taxpayer who feels the amount of the special tax assigned to a parcel is in error may file a notice with the Tax Administrator appealing the levy of the special tax. The Administrator then will promptly review the appeal and, if necessary, meet with the applicant. If the Administrator verifies that the special tax levied on the applicant's parcel should be modified or changed, the special tax levy will be corrected and, if applicable in any case, a credit or refund will be granted. The appeal must be filed not later than one year after having paid the special tax that is disputed.

B. The City Council may by resolution interpret this Chapter for purposes of clarifying any vagueness or ambiguity as it relates to the special tax rate, the classification of properties, or any definition applicable to the special tax.

C. Without City Council approval, the Tax Administrator may make minor, non-substantive administrative and technical interpretations of the provisions of this Chapter for purposes of administrative efficiency or convenience or to comply with new applicable federal, state, or local law, so long as any interpretation does not materially affect the rate paid by any and manner of collection of the special tax. The Tax Administrator may also make determinations regarding whether property is subject to the special tax and the applicable tax rate based on use of the property.

Resolution 2019-50 Exhibit A

4.56.100 – Amendments

This Chapter may only be amended by a vote of the people of El Cerrito if the amendment would result in the special tax being imposed, extended, or increased in a manner not authorized by this Article as originally approved by the voters, or if the amendment would substantially alter the purpose of the special tax. The City Council may enact other amendments, including but not limited to amendments necessary to implement or administer the special tax.

4.56.110 – Expiration of Special Tax

The authority to levy the special tax shall remain in effect unless a later ordinance is adopted and approved by a vote of the people of El Cerrito that either repeals the special tax or establishes a date that the authority to levy the special tax shall terminate.

Section 3. Adjustment of Appropriations Limit. Pursuant to Article XIIIB of the Constitution of the State of California and applicable laws, the appropriations limit for the City is hereby increased by the aggregate sum authorized to be levied by this tax for fiscal year 2020-21 and each year thereafter.

Section 4. Compliance with the California Environmental Quality Act. Approval of this ordinance is exempt from review under the California Environmental Quality Act (Public Resources Code §§ 21000 et seq. (“CEQA”) and 14 Cal. Code Reg. §§ 15000 et seq. (“CEQA Guidelines”)). The tax authorized by this ordinance is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have such effect, the City would undertake the required CEQA review for that particular project at the earliest feasible time prior to approval of the project, consistent with CEQA Guidelines Sections 15004 and 15352. Therefore, pursuant to CEQA Guidelines section 15060, CEQA analysis is not required.

Section 5. Severability. If any section, subsection, sentence, clause or phrase of this chapter is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this chapter. The city council hereby declares that it would have passed the ordinance codified in this chapter, and each and every section, subsection, sentence, clause or phrase not declared invalid or unconstitutional without regard to whether any portion of this chapter would be subsequently declared invalid or unconstitutional.

Resolution 2019-50 Exhibit A

Resolution 2019-50 Exhibit A

Section 6. Effective Date and Publication. This Ordinance shall be considered adopted on the date of the declaration of the vote at the November 5, 2019, election and shall become effective 10 days thereafter. Prior to the expiration of fifteen days from the passage thereof, the ordinance or a summary thereof shall be posted or published as may be required by law.

The foregoing ordinance was approved by the following vote of the People of the City of El Cerrito at special election on November 5, 2019:

YESES: NOES:

The foregoing ordinance was adopted by the Declaration of the vote at the November 5, 2019 special, which the City Council of the City of El Cerrito declared on December XX, 2019 by the following vote:

AYES: NOES: ABSENT : ABSTAIN:

APPROVED:

_____________________ _ Rochelle Pardue-Okimoto, Mayor

ATTEST:

_______________________ Holly M. Charléty, City Clerk