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RESOLUTION NO. 2001-79
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
CALLING AND GIVING NOTICE OF THE HOLDING OF A SPECIAL MUNICIPAL
ELECTION TO BE CONSOLIDATED WITH THE STATEWIDE PRIMARY ELECTION
ON TUESDAY, MARCH 5, 2002, FOR THE SUBMISSION TO
THE QUALIFIED VOTERS OF FOUR SEPARATE BALLOT MEASURES:
TWO PROPOSED CHARTER AMENDMENTS;
AN ADVISORY MEASURE; AND A PROPOSED ORDINANCE
FIRST MEASURE (PROPOSED CHARTER AMENDMENT)
WHEREAS, the City Council of the City of Huntington Beach, California, desires to submit
to the voters at a special Municipal Election a proposed charter amendment relating to the"Property
Rights Protection Measure"; and
WHEREAS, pursuant to authority provided by Article XI of the Constitution and Title 4,
Division 2, Chapter 3 of the Government Code; and Division 9, Chapter 3, Article 3 (commencing at
§ 9255) of the Elections Code of the State of California, a petition has been filed with the legislative
body of the City of Huntington Beach signed by more than fifteen percent of the registered voters of
the city according to the county election department's last official report of registration to the
Secretary of State to submit a proposed charter amendment to the voters; and
WHEREAS, the City Council is authorized and directed by constitutional provision and
statute to submit the proposed charter amendment to the voters;
NOW, THEREFORE, THE CITY COUNCIL of the City of Huntington Beach,
California, does resolve, declare, determine and order as follows:
SECTION 1. That pursuant to Article XI of the Constitution and Title 4, Division 2,
Chapter 3 of the Government Code; and Division 9, Chapter 3, Article 3 (commencing at § 9255)
of the Election Code of the State of California, there is called and ordered to be held to be in the
City of Huntington Beach, California, on Tuesday, March 5, 2002, a Special Municipal Election
for the purpose of submitting the following proposed charter amendment, entitled the Property
Rights Protection Measure:
Property Prgperty Rights Protection Measure
YES
"Shall the Charter of the City of Huntington Beach be
amended by adding a new section thereto providing that
only a property owner can establish the price or terms
regarding that property's sale, lease, rental, exchange or NO
transfer; and prohibiting the City of Huntington Beach
from legislating or regulating the price or terms
concerning the sale, lease, rental, exchange or transfer of
property(for example, by the adoption of a rent control
ordinance)?"
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SECTION 2. That the text of the proposed charter amendment submitted to the voters is
attached as Exhibit A.
SECOND MEASURE PROPOSED CHARTER AMENDMENT
WHEREAS, the City Council of the City of Huntington Beach, California, desires to submit
to the voters at a Special Municipal Election a proposed charter amendment relating to the creation
of an Infrastructure Fund; and
WHEREAS, the City Council is authorized and directed by constitutional provision and
statute to submit the proposed charter amendment to the voters;
NOW, THEREFORE, THE CITY COUNCIL of the City of Huntington Beach, California,
does resolve, declare, determine and order as follows:
SECTION 3. That pursuant to Article XI of the Constitution, Title 4, Division 2, Chapter 3
of the Government Code; and Division 9,Chapter 3, Article 3 (commencing at § 9255) of the
Elections Code of the State of California, there is called and ordered to be held in the City of
Huntington Beach, California, on Tuesday, March 5, 2002, a Special Municipal Election for the
purpose of submitting the following proposed charter amendment relating to the creation of an
Infrastructure Fund:
Creation of Infrastructure Fund
YES
"Shall the Huntington Beach Charter be amended to
establish an"Infrastructure Fund"with all infrastructure
revenues raised, and accrued interest, directed into
the Fund; prohibiting the transfer or loan of Fund NO
monies; requiring that General Fund expenditures for
infrastructure not be reduced below 15%of General
Fund revenues based on a five-year rolling average; and
requiring that City Council designate an advisory board
to annually review and audit the Infrastructure Fund?"
SECTION 4. That the text of the proposed charter amendment submitted to the voters is
attached to this resolution as Exhibit B.
THIRD MEASURE (ADVISORY VOTE ONLY)
WHEREAS, the City Council of the City of Huntington Beach, California, desires to
submit to the voters at a Special Municipal Election an advisory measure concerning whether a
utility tax paid solely by an electrical power plant should be placed into an Infrastructure Fund;
and
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WHEREAS,the City Council is authorized and directed by statute to submit the
following advisory measure to the voters;
NOW, THEREFORE, THE CITY COUNCIL of the City of Huntington Beach,
California, does resolve, declare, determine and order as follows:
SECTION 5. That pursuant to the requirements of the City Charter, there is called and
ordered to be held in the City of Huntington Beach, California, on Tuesday, March 5, 2002, a
Special Municipal Election for the purpose of submitting to the voters the following advisory
measure:
Advisory Vote Only. Infrastructure Fund.
Power Plant Utility Tax YES
"Should the Utility Tax paid solely by an electric power
plant be placed into an Infrastructure Fund to be used
only for the maintenance, construction and repair of NO
infrastructure such as storm drains, storm water pump
stations, alleys, streets, highways, curbs and gutters,
sidewalks,bridges, street trees, landscaped medians,
parks,beach facilities, playgrounds, traffic signals,street.
lights,block walls along arterial highways and all public
buildings and public ways?"
FOURTH MEASURE (PROPOSED ORDINANCE)
WHEREAS, the City Council of the City of Huntington Beach, California, desires to
submit to the voters at a Special Municipal Election a proposed ordinance relating to the City's
utility tax; and
WHEREAS,the City Council is authorized and directed by statute to submit the proposed
ordinance to the voters;
NOW, THEREFORE, THE CITY COUNCIL of the City of Huntington Beach,
California, does resolve, declare, determine and order as follows:
,SECTION 6. That pursuant to the requirements of the City Charter, there is called and
ordered to be held in the City of Huntington Beach, California, on Tuesday, March 5, 2002, a
Special Municipal Election for the purpose of submitting to the voters the following proposed
ordinance:
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.Amendment of Utility Tax by Removing Electric Power
Plant Exem tion YES
"Shall the ordinance requiring an electric power plant to
pay the same Utility Tax as do residents and businesses
of the City of Huntington Beach by amending the NO
Huntington Beach Municipal Code to remove Section
3.36.080(b) and make corresponding changes to Section
3.36.010(g),be adopted?"
SECTION 7. That the text of the proposed ordinance submitted to the voters is attached
to this resolution as Exhibit C.
SECTION 8. The findings supporting the urgency for the adoption of Emergency
Ordinance No. 3516 are: (a) the Superior Court recently ruled against the City of Huntington
Beach in the case of Howard Jarvis Taxpayers'Assn. v. City of Huntington Beach, preventing the
City from levying its retirement tax; (b) as a result of the Court's ruling, the City will suffer a
loss of eight million dollars in budget revenues, (c) although the City has appealed the Court's
decision, the City is not currently levying or collecting this tax, and (d) a report from the City's
Infrastructure Committee has recommended that the City needs additional monies to maintain
and repair its system of public infrastructure.
SECTION 9. That the ballots to be used at the election shall be in form and content as
required by law.
SECTION 10. That the City Clerk is authorized, instructed and directed to procure and
furnish any and all official ballots, notices, printed matter and all supplies, equipment and
paraphernalia that may be necessary in order to properly and lawfully conduct the election.
SECTION 11. That the polls shall be open at seven o'clock a.m. of the day of the
election and shall remain open continuously from that time until eight o'clock p.m. of the same
day when the polls shall be closed, except as provided in § 14401 of the Elections Code of the
State of California.
SECTION 12. That in all particulars not recited in this resolution, the election shall be
held and conducted as provided by law for holding municipal elections.
SECTION 13. That notice of the time and place of holding the election is 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 14. That the City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolutions.
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Res.No.2001-79
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 15th day of October 2001. .
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk +-City Attorney p
REVIEWED AND APPROVED: INITIATED AND APPROVED:
City AdmKistrator City Clerk
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Res.No.2001-79
Res.No.2001.79
EXHIBIT A
A PROPOSAL TO ADD SECTION 803 TO THE CITY
CHARTER OF THE CITY OF HUNTINGTON BEACH
SECTION 1. Property Rights Protection Measure:
The City Charter of the City of Huntington Beach is hereby amended to add a new
Section 803 to read as follows:
"Section 803. PROPERTY RIGHTS PROTECTION MEASURE.
(a) The City shall not enact or enforce any measure which mandates the price or
other consideration payable to.the owner in connection with the sale, lease, rent, exchange
or other transfer by the owner of real property. Any such measure is hereby repealed.
(b) The word "mandates" as used in subsection(a) includes any measure taken
by ordinance, resolution, administrative regulation or other action of the City to establish,
continue, implement or enforce any control or system of controls on the price or other
terms on which real property in the city may be offered, sold, leased, rented, exchanged
or otherwise transferred by its owner. The words "real property" as used in subsection(a)
refer to any parcel of land or site, either improved or unimproved,on which a dwelling
unit or residential accommodation is or may be situated for use as a home,residence or
sleeping place.
(c) This Section 803 shall not apply to:
(1) any real property which contains serious health, safety, fire or building
code violations, excluding those caused by disasters, for which a civil or criminal
citation has been issued by the City and remains unabated for six months or
longer;
(2) any real property owned by a public entity, and real property where the
owner has agreed by contract with the public entity, including the City and any of
its related agencies, to accept a financial contribution or other tangible benefit
including without limitation, assistance under the Community Redevelopment
Law;
(3) any planning or zoning power of the City as relates to the use,
occupancy or improvement of real property and to any real property which the
City or any of its related agencies may acquire by eminent domain, purchase,
grant or donation;
(4) any power of the City to require a business license for the sale or rental
of real property, whether for regulation or general revenue purposes;
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(5) any dwelling unit or accommodation in any hotel, motel or other
facility when the transient occupancy of that dwelling unit or accommodation is
subject to a transient occupancy tax; or
(6) to impair the obligation of any contract entered into prior to the
enactment of this Section 803 or otherwise required by State law."
SECTION 2. 'Title or Proposal to Amend the Cit. Charter:
The proposal to amend the City Charter of the City of Huntington Beach to add a new
Section 803 shall be known as the "Property Rights Protection Measure".
SECTION 3. Findings and Statement of Purpose of Property Rights Protection Measure:
There is strong and convincing practical evidence which shows that price controls on the
sale or rental of any residential accommodation does nothing to preserve or maintain affordable
housing. In fact the evidence in Southern California appears to show that rent control destroys
affordable housing and accelerates development pressures to turn older properties into new and
higher density commercial and so-called"upscale"housing. To pick just one of many examples--
in the City of Santa Monica with its rent control regulations Santa Monica has seen a decline in the
number of family households with children which is larger than any other comparable city in
Southern California without rent control. Under rent control, Santa Monica's elderly population
(age 65 or over) declined by 1.7 percent between 1980 and 1990, whereas the elderly population
of Los Angeles County rose by more than 15% over the same decade. The elderly population
increased over this period in every comparable city without.rent control in Southern California.
The result of social experimentation with rent control in Southern California produces the
following conclusion:
Rent control does not provide more or better affordable housing for anyone--especially
the elderly and young families.
The imposition of rent control forces some property owners to change the use of their
property and this change of use often can result in more development and pressures which cause
the destruction of existing neighborhoods. Unnecessary and complicated government interference
in private property transactions and homeownerships and rental decisions produces wasteful
lawsuits and imposes needless costs on all taxpayers.
We the people find that the best means to assure that our community and neighborhoods
are preserved is to protect property rights and to allow owners to make their own decisions about
the price and other terms on which they can sell or lease their residential property.
SECTION 4. Severability:
If any provision of Section 803 of the City Charter of the City of Huntington Beach, or
the application to any person or circumstance is held invalid by a court of competent jurisdiction,
such invalidity shall not affect other provisions or applications of Section 803 which can be
given effect without the invalid provision or application, and to this end, the provisions of
Section 803 are declared to be severable.
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EXHIBIT B
Section 617 of the Charter of the City of Huntington Beach is hereby added to read as follows:
Section 617. INFRASTRUCTURE FUND
(a) All revenue raised by vote of the electors or imposed by vote of the City Council on or
after March 5, 2002, by a measure which states that the revenue to be raised is for the
purpose of infrastructure, as said term is defined in this paragraph, shall be placed in a
separate fund entitled "Infrastructure Fund." The term "Infrastructure" shall mean
long-lived capital assets that normally are stationary in nature and normally can be
preserved for significantly greater number of years. They include storm drains, storm
water pump stations, alleys, streets, highways, curbs and gutters, sidewalks,bridges,
street trees, landscaped medians, parks, beach facilities, playgrounds, traffic signals,
strectlights, block walls along arterial highways, and all public buildings and public
ways. Interest earned on monies in the Infrastructure Fund shall accrue to that account.
Monies in said Fund shall be utilized only for direct costs relating to infrastructure
improvements or maintenance, including construction, design, engineering,project
management, inspection, contract administration and property acquisition. Monies in
said Fund shall not be transferred, loaned or otherwise encumbered for any other
purpose.
(b) Revenues placed in the Infrastructure Fund shall not supplant existing infrastructure
funding. The average percentage of general fund revenues utilized for infrastructure
improvements and maintenance, for the five- (5)year period of 1996 to 2001, is and
was 14.95%. Expenditures for infrastructure improvements and maintenance,
subsequent to 2001, shall not be reduced below 15% of general fund revenues based
on a five- (5) year rolling average.
(c) The City Council shall by ordinance establish a Citizens Infrastructure Advisory Board
to conduct an annual review and performance audit of the Infrastructure Fund and report
its findings to the City Council prior to adoption of the following fiscal-year budget.
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EXHIBIT C
First. Section 3.36.010 of the Huntington Beach Municipal Code is hereby amended to ,
read as follows:
3.36.010 Definitions. Except where the context otherwise requires,the definitions given in this
Section govern the construction of this chapter:
(a) "City"means the City of Huntington Beach.
(b) "Month"means a calendar month.
(c) "Person"means any domestic or foreign corporation, firm, association, syndicate,joint
stock company,partnership of any kind,joint venture, club,Massachusetts business or
common law trust, society, individual or municipal corporation.
(d) "Service supplier"means any entity which receives taxes paid and remits same as
imposed by this chapter.
(e) "Service user"means a person required to pay a tax imposed by this chapter.
(f) "Tax Administrator"means the Finance Director of the City.
(g) "Telephone corporation, , gas corporation, and water corporation"
shall have the same meanings as defined in Sections 234, 24-9, 222, and 241 respectively,
of the Public Utilities Code of the State of California, as said Sections existed on January
1, 1970. " " '*(W)ater corporation" shall be construed to
include any organization,municipality or agency engaged in the selling or supplying of
water to a service user;. ,
elear-iraity.
Second. Section 3.36.080 of the Huntington Beach Municipal Code is hereby amended to
read as follows:
3.36.080 Gas tax--Exclusions. There shall be excluded from the base on which the tax imposed
in this Section is computed:
(a) Charges made for gas which is to be resold and delivered through mains or pipes;
(b) Charges made for-gas to be used in the ganemfiea of eRefff by An
(O(b) Charges made by a gas public utility for gas used and consumed in the conduct of the
business of gas public utilities; and
(d)(c) Charges for gas used in water pumping by water corporation.
Res. No. 2001-79
STATE OF CALIFORNIA )
COUNTY OF ORANGE } ss:
CITY OF.HUNTINGTON BEACH }
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of
the City of Huntington Beach, and ex-officio Clerk of the City Council of said
City, do hereby certify that the whole number of members of the City Council
of the City of Huntington Beach is seven; that the foregoing resolution was
passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at a regular meeting thereof held on the 15th
day of October, 2001 by the following vote:
AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff,
Bauer
NOES: None
ABSENT: None
ABSTAIN: None
City Clerk and ex-officio C erk of the
City Council of the City of
Huntington Beach, California