TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve Charelian, Finance Director
George Gabriel, Assistant to the City Manager
SUBJECT:Title
Consideration of a Resolution Approving a Memorandum of Understanding between the City of Manhattan Beach and Manhattan Beach Unified School District (MBUSD) Concerning the Administration of the “MB Citizens for School Measure Parcel Tax” (City Manager Moe).
(Estimated Time: 30 Min.)
CONSIDER ADOPTING RESOLUTION NO. 22-0064
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council consider adopting Resolution No. 22-0064 approving a Memorandum of Understanding (MOU) between the City of Manhattan Beach and Manhattan Beach Unified School District (MBUSD) concerning the administration of the “MB Citizens for School Measure Parcel Tax” (i.e. Measure A) if the Measure is adopted by the voters.
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FISCAL IMPLICATIONS:
Should City Council approve the MOU, the City would receive reimbursement for costs from MBUSD related to Measure A.
BACKGROUND:
On January 28, 2022, proponent Michael Sinclair filed a “Notice of Intent to Circulate Initiative Petition for the MB Citizens for School Measure” which would authorize the City to collect an annual parcel tax of $1,095 per parcel of taxable real property in the City, with exemptions for certain qualifying individuals, beginning on July 1 after the measure becomes effective and would expire 12 years thereafter.
On February 14, 2022, the proponent submitted 339 initiative petition sections to the City Clerk’s Office. After conducting a prima facie review, the City Clerk submitted all petitions and 4,087 signatures to the Los Angeles County Registrar-Recorder/County Clerk’s Office for verification on February 15, 2022.
On March 8, 2022, the City Clerk's Office received the Certificate of Sufficiency from the Los Angeles County Registrar Recorder/County Clerk's Office for the Parcel Tax Initiative where 3,507 signatures qualified, in excess of the minimum number of signatures required.
At the March 8, 2022, meeting, City Council called a special election to place a parcel tax initiative on the June 7, 2022 Statewide Primary Election ballot.
DISCUSSION:
Section 8.40.040 of the initiative states that, “Proceeds collected by the levy of the parcel tax shall be used…To provide oversight to monitor how the School District is spending the Parcel Tax revenue and make sure the proceeds from the Parcel Tax are only spent for the purposes approved by the voters.”
Should voters approve Measure A on June 7, 2022, the City of Manhattan Beach and Manhattan Beach Unified School District have drafted an MOU to formally outline the effective collection, management, oversight and distribution of revenue arising from Measure A.
To provide proper oversight as outlined by Measure A, the City would be responsible for tasks including:
• Providing oversight of Measure A spending including an annual audit report which shows the amount of funds collected and expended;
• Administering and managing the Oversight Committee;
• Submitting documentation to the Los Angeles County Assessor; and
• Managing consultants and consultant costs to assist with administration to make sure the proceeds from the Parcel Tax are only spent for the purposes approved by the voters.
Per the proposed MOU, MBUSD has agreed to:
• Administer the exemption application process
• Conform to state law applicable to school district initiated parcel taxes including the requirement that once a taxpayer has received an exemption, such taxpayer does not have to re-apply for that exemption, unless the taxpayer becomes ineligible; and
• Provide a district liaison to Oversight Committee to provide reports to the Oversight Committee.
The MOU also contains the following provisions: inflation adjustments are calculated using a standard index, with an annual cap of 5%; the City’s administration costs to provide oversight to monitor how the School District is spending the Parcel Tax revenue and make sure the proceeds from the Parcel Tax are only spent for the purposes approved by the voters shall not exceed half of one percent (0.50%) of collected annual revenue for Measure A; an annual review commencing in June 2023; and standard indemnification clauses. In addition, the District has agreed to reimburse the City for all costs incurred by the City in connection with the June 7, 2022 special election. With MBUSD’s collaboration, the City will adopt bylaws for the Oversight Committee.
CONCLUSION:
Staff recommends that the City Council consider adopting Resolution No. 22-0064 approving a Memorandum of Understanding (MOU) between the City of Manhattan Beach and Manhattan Beach Unified School District (MBUSD) concerning post-election administration of the “MB Citizens for School Measure Parcel Tax” (i.e. Measure A).
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 22-0064
2. Memorandum of Understanding