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CC 2020-07-14_10a Supplemental No 1 MEMORANDUM TO: CITY COUNCIL FROM: BILL ROBESON, ACTING CITY MANAGER JESSICA MATSON, DEPUTY CITY CLERK SUBJECT: SUPPLEMENTAL INFORMATION AGENDA ITEM 10.a. – JULY 14, 2020 CITY COUNCIL MEETING CONSIDERATION OF PLACING A LOCAL TRANSACTION AND USE TAX (“SALES TAX”) MEASURE ON THE NOVEMBER 3, 2020 BALLOT DATE: JULY 13, 2020 Attached is correspondence received for the above referenced item. cc: Acting City Manager City Attorney City Clerk City Website (or public review binder) From:Teresa Coelho Halvorson To:public comment Subject:item 10 A Date:Monday, July 13, 2020 3:19:14 PM Attachments:image002.png Dear Arroyo Grande City Council, I believe a 1% higher sales tax would place an undue burden on an already beleaguered covid-19 stricken public. Bad timing, bad tax. Thanks for opening up the discussion. Teresa Coelho Halvorson Branch Manager Click to download mobile app!! | Check out loan process video!! This message contains confidential information intended only for the use of the intended recipient(s) and may contain information that is privileged. If you are not the intended recipient, or the person responsible for delivering it to the intended recipient, you are hereby notified that reading, disseminating, distributing or copying this message is strictly prohibited. Links contained in this email have been replaced. If you click on a link in the email above, the link will be analyzed for known threats. If a known threat is found, you will not be able to proceed to the destination. If suspicious content is detected, you will see a warning. From:Sydney Dunbar To:public comment Subject:sales tax increase and face mask fines Date:Monday, July 13, 2020 2:57:32 PM Good Afternoon, I am very disappointed in the thought of your raising our sales tax. This really can not be happening at this time when many people aren't even able to work and received no support from the government. The timing of this is punitive and must be stopped or addressed after our economic recovery. The face mask fines are outrageous and I do not need to be told what to do with my body if people are afraid to get Covid-19 they can surely stay home. My family has been through enough and it is not your job to put health above the constitution. I have been continually harassed about the mask issue and I am not allowed to wear a mask due to my current health condition. Do you realize if you have a mask excuse signed by a Doctor it doesn't change how others will respond to you. Pleases don't allow this to happen as there will be many lawsuits and create more strife for everyone. We have been through enough! Sydney Dunbar From: Steven Arnold < Date: July 13, 2020 at 10:05:02 AM PDT To: Keith Storton <kstorton@arroyogrande.org> Subject: Tax Rate Hike Please forward to the mayor: If the tax rate increases 1%, my shopping, gasoline, restaurants, etc. will then go to SLO and Grover Beach. Thank you, Steve Arnold From:Melinda Couch To:public comment Subject:Tax increase and mask fines Date:Monday, July 13, 2020 10:54:21 AM To my city council, I will keep this short and sweet. I do not support the tax increase. I do not support you using the chaos of the Covid- 19 issue and the mandates coming from Newsom to strip us of our rights. Fining your community for not wearing a mask is the wrong direction. Being fiscally conservative with our tax dollars would be a good place to start. Thank you for your time, we will be calling in as well. Smiles, Melinda Couch From:Laura Jeffrey To:public comment Subject:item 10 A Date:Monday, July 13, 2020 11:41:08 AM Arroyo Grande City Council, As a small business owner with a focus on tourism, we are facing huge challenges to recover from COVID, any additional economic fees imposed on us is a terrible burden, especially during these uncertain times. Respectfully, Laura Jeffrey Certified Sommelier WSET Certified Owner | https://link.edgepilot.com/s/175c6a79/oTsxpaHAJEueqvMU61J7aA?u=http://www.101winetours.com/ (805) 874 - CORK (2675) 101winetours@gmail.com https://link.edgepilot.com/s/85af0014/I9R3OjDYSUmBY2OcHucwTQ?u=http://www.facebook.com/101winetours Instagram/Twitter: @101winetours 5 Star Reviews on Trip Advisor & Yelp! Links contained in this email have been replaced. If you click on a link in the email above, the link will be analyzed for known threats. If a known threat is found, you will not be able to proceed to the destination. If suspicious content is detected, you will see a warning. From:Kenneth Peterson To:public comment Subject:Sales tax increase and fines for non-mask wearers Date:Monday, July 13, 2020 11:13:59 AM I say no to both! This is not a way to compensate for poor budgeting by the city. The citizens of Arroyo Grande didn’t create this problem so don’t feel we should all be punished with extra sales taxes and mask fines. Ken A Peterson, OD Pismo Beach CA 93449 ( The information contained in this e-mail may be privileged and confidential under applicable law. It is intended solely for the use of the person or firm named above. If the reader is not the intended recipient, be advised that any unauthorized disclosure, copying, distribution, or the taking of any action in reliance on the contents of this information is strictly prohibited. If you received this message in error please notify us immediately by returning the e-mail to the origination e-mail address. Thank you. From:Jacie Caballero To:public comment Subject:Proposed Tax hike and fines Date:Monday, July 13, 2020 11:41:06 AM Dear AG City Council, I just want to take a minute to voice my concerns regarding the proposed tax hike and face mask fines that will be voted on tomorrow. As a resident and business owner, I feel that this is the wrong approach to increasing revenue. Many businesses, including my own, have taken a financial hit with this continuing shut down of our economy and many clients losing their jobs or sources of income has caused a trickle down affect to well, pretty much everyone else. Adding additional taxes when money is already so tight will only create the reverse affect and keep people from spending their already limited finances. I highly encourage you to reconsider the timing of this and find another resource to pull from other than the over burdened taxpayers. Second, mandating face masks is illegal and unconstitutional. Even Dr. Fauci, the leading infectious disease specialist according to NBC, has stated multiple times that face masks don’t work and no one should be wearing them. Regardless of how someone feels about the issue or even if they work or not, its not legal to mandate it and then fine people for not following the mandate as its not a law. If you do this, the city will face multiple law suits and most likely the fines will not have to be paid since the courts cannot enforce this, so it will lead to increased costs to the city and be a complete waste of time, money and resources for all. People need to take personal responsibility and do what is right for them and the safety of those around them. Government needs to stay out of the way. Thank you for allowing me to voice my opinion. Please do the right thing. Jacie Caballero Jacie Caballero Health Insurance Broker #0G70010 Coast Cities Insurance Solutions, Inc. https://link.edgepilot.com/s/5407cc51/n-JYXZ2s40uiPp2gYjVCHQ? u=http://www.coastcitiesins.com/ Links contained in this email have been replaced. If you click on a link in the email above, the link will be analyzed for known threats. If a known threat is found, you will not be able to proceed to the destination. If suspicious content is detected, you will see a warning. From:Jocelyn Brennan To:Caren Ray Russom; Keith Storton; Lan George; Kristen Barneich; Jimmy Paulding Cc:Bill Robeson; Whitney McDonald; Jessica Matson; Kelly Wetmore Subject:Item 10 A Date:Monday, July 13, 2020 8:17:27 AM Attachments:SCCC re Arroyo Grande sales tax increase.pdf Dear Arroyo Grande Council Members, Please see the attached letter from the Chamber Board of Directors regarding the proposed sales tax increase, item 10A on tomorrow's agenda. Please let me know if you have any questions or comments. Upcoming Chamber Online Events: July 16th Arroyo Grande Steering Committee (Zoom meeting), 8:30 to 9:30 am — RSVP here to receive the login July 17th Grover Beach Steering Committee (Zoom meeting), 12 noon to 1 pm — RSVP here to receive the login July 28th Membership Coffee (Zoom meeting), 9 to 10 am — RSVP here to receive the login July 31st Governmental Affairs Committee (Zoom meeting), 8 to 9:15 am — RSVP here to receive the login Jocelyn Brennan President l CEO South County Chambers of Commerce Cell/Text (805) 748-7630 Office (805) 489-1488 Inline image OWAPstImg673487 Links contained in this email have been replaced. If you click on a link in the email above, the link will be analyzed for known threats. If a known threat is found, you will not be able to proceed to the destination. If suspicious content is detected, you will see a warning. P a g e 1 | 2 South County Chambers of Commerce July 13, 2020 Arroyo Grande City Council Via Email Dear Arroyo Grande City Council, . Thank you for your continued support and accessibility to the business community. We appreciate the city making arrangements for additional outdoor seating for restaurants. This will be even more valuable as SLO County is placed on the state’s monitor list and restaurants are restricted to outdoor dining for a minimum of three weeks. We are grateful for your continued partnership on the Arroyo Grande Steering Committee, Governmental Affairs, Tourism Business Improvement District, State of the City, Christma s in the Village, and candidate forum. The South County Chambers of Commerce (SCCC) exists to create partnerships and opportunities that ensure South County Businesses prosper. Our vision is that our members are the most resilient, diverse, and growing businesses in South San Luis Obispo County because of the effective stakeholder engagement and advocacy we do. Our Chamber represents 700 businesses with over 7,900 employees. Our businesses have recently experienced unbelievable and unprecedented challenges due to the COVID- 19 pandemic restrictions on business, and loss of revenue due to the stay at home order. The local businesses have complied with these restrictions and have shown extreme patience and resiliency. Arroyo Grande businesses continue to face an uncertain future. The South County Chambers 2020 Board of Directors has reviewed the Arroyo Grande proposed sales and use tax increase that you are considering at your July 14 th council meeting for the November ballot. We appreciate the Acting City Manager presenting this item to our Arroyo Grande Steering Committee, and the proactive outreach by council members. We sent a survey to our local businesses and of approximately 70 responses 54% were opposed to an increase, 25% supported an increase and 21% were undecided. After careful consideration, the SCCC Board voted unanimously to oppose an increase to the Arroyo Grande sales tax. We recognize that the city budget has also been affected by the impacts of COVID -19 and agree that local streets and infrastructure are important to the business community and tourism. However, at a time when our local businesses have suffered a severe loss in revenue, are struggling to get their customer base back while complying with local and state health and safety guidelines, we concluded the time is not right to propose an increase in the sales and use tax that will directly impact local businesses bottom line. We recommend the city focus on economic development and utilize SB1090 funds (and/or a portion of sales tax funds depending on the council’s decision and then ultimately the voter’s decision). When Arroyo Grande businesses thrive, it will benefit the city budget and the resident’s quality of life. Economic development efforts are proven to stimulate private sector investment that results in the creation of private- P a g e 2 | 2 sector jobs and improvement in the local tax base. In particular, business retention will be more important than ever. Below is a suggested framework of programs. The Chamber will be committ ed to supporting and assisting with these efforts or to implement them in partnership with the city, including a development and review panel. 1. Low-interest Loans: Available to businesses for rent, purchasing land, refu rbishing buildings, and new equipment. 2. Business Beautification Grants: Grant funding for business infrastructure and/or beautification projects that enhances the appearance and wayfinding of the city business corridors. 3. Workforce Training: Training provided for the workforce to businesses and industries impacted by COVID-19, allowing them to remain competitive. Training on health and safety best practices and compliance, and online sales. 4. Technology Grants: One-time grant funding for businesses to upgrade or purchase technology for business operations. 5. Fee Credits: City fee credits for businesses, encouraging business retention and expansion. Fees are based on the number of local jobs added and/or retained. Please join us in supporting our local businesses and setting them up for a successful recovery. Thank you for your consideration. Respectfully, Jocelyn Brennan, South County Chambers President & CEO Tony Goetz, South County Chambers 2020 Chairperson 2020 Board of Directors From:Christine Miller To:public comment Subject:tax hike face masks Date:Monday, July 13, 2020 2:38:43 PM Good afternoon, I am voicing my displeasure that you are even considering increasing sales tax. Our businesses and personal finances have been hugely impacted already with the continuing support from our elected officials keeping our state closed. The rise in suicide, spousal, and child abuse has not even gotten a blip on the radar. We will all be voting this election, and will not forget how you handle this. The subject of face mask fines is absolutely unthinkable. It is unconstitutional, unhealthy and is not a law. You will face lawsuits collectively, and individually if you enact this ridiculous over reach. We have very few deaths, and not to mention we the people have our rights. It is not your job to fine me for using my constitutional rights as to choice. It is not your job to put health above the constitution. Please remember that you swore an oath when you were elected to uphold the CONSTITUTION OF THE UNITED STATES OF AMERICA. Enforcing unlawful orders as the color of law will bring more division. I have the choice to stay home if I am not well. Do not tell me as a grown adult what to put on my body. Christine Miller From:Dennis & Claudine Lingo To:Caren Ray Russom; Keith Storton; Jimmy Paulding; Kristen Barneich; Lan George Cc:kwhitmore@arroyogrande.org; Jessica Matson; Bill Robeson Subject:PUBLIC COMMENT - ITEM 10a (SALES TAX MEASURE) ON THE COUNCIL MEETING AGENDA Date:Monday, July 13, 2020 2:33:29 PM Attachments:Sales Tax Increase Ballot Measure - comments for 7-14-20 council meeting.pdf Attached are my comments for the subject agenda item. I am not able to participate in the meeting but want to ensure my comments are included in the public record. Thank you, Claudine Lingo This is to provide public comment regarding Item 10.a. on the July 14, 2020, City Council meeting agenda concerning a proposed measure for the November 3, 2020 ballet regarding a 1% increase in the local sales tax. 1. EXPIRATION DATE: The measure should include an expiration date no more than 5 years from the end of 2020. Then the voters would have the opportunity to decide whether or not the measure should be extended as well as how the additional revenue should be used. 2. USE OF THE ADDITIONAL SALES TAX REVENUE: A clause should be included in the sales tax increase measure to prohibit use of the additional revenue from the sales tax measure for funding Alternative 4-C of Brisco Interchange Project. The majority of input provided by residents regarding the Brisco Interchange Project indicated strong opposition to 4-C compared with Alternative 1. Alternative 1 would provide traffic relief at the interchange location, as well as minimize the impact of traffic around St. Pat School and the residential areas (Grace Lane and Rodeo Drive), and the cost is far less. It was financially irresponsible for the City Council to vote to proceed with Alternative 4-C. For the reasons indicated above, a clause must be included in the sales tax increase ballot measure to prohibit use of the revenue to fund Alternative 4-C. 3. USE OF REVENUE FOR MAINTENANCE OF PARKS AND OPEN SPACES The use of revenue from the sales tax increase to fund Maintenance of Parks and Open Spaces should be prohibited unless the Grace Lane Assessment District is dissolved, except that portion related to the road maintenance for lots 16 through 19 for the reasons that follow. The November 28, 2006, memo from the City Attorney to the City Council (subject: Consideration of a Resolution Ordering Formation of the Grace Lane Assessment District, Confirming Assessments, District Diagram and Approving the Levying of Assessments) provides the background relative to the formation of the assessment district. I requested the City Clerk to ensure copies are available to you rather than me attaching it to this document as my copy is all marked up. The Grace Lane Assessment District was created to ensure the City did not have to put a measure on the ballot to raise the funds to pay for the maintenance of the open space and without having to get the required 2/3 of voters to approve it. So the assessment district was created as a means for the owner (Greg Nester) to get City approval to develop Grace Lane. In the desire to push the assessment through, neither the property owner (Greg Nester), The Wallace Group (the business that prepared the Engineer’s Report), nor the City took any steps to ensure that every property that would enjoy “special benefit” from maintenance of the hiking trail and open space (especially fire fuel suppression) be included in the assessment district. Years after the creation of the assessment district when houses were built and sold on Grace Lane, home buyers had to sign a document that they understand there will be assessed a fee on their annual property tax bills for maintenance of the open space and hiking trail. That was the only information provided to home buyers. No information was provided to indicate that only Grace Lane residents had to pay for the open space and why, nor was the Engineer’s Report providing details. It appears that the owner of the property at the time (Greg Nester/Vista Roble LLC), the City Council, City staff, and the Wallace Group (the company who prepared the Engineer’s Report) may not have read item # 6 on page 2 of attachment 1 (Petition Requesting Formation of the Grace Lane Assessment District) to the November 28, 2006 memo from the City Attorney to the City Council which states: “Owner [referring to Greg Nester] understands that the formula used to calculate the assessments shall accurately reflect the proportionate special benefit received by each such lot or parcel or by the public arising from the operation, maintenance and repair of the improvements as determined by the City.” I appears there must have been no understanding as to who would benefit. Page 11 of The Engineer’s Report indicates that Grace Lane properties were assigned 85% of the “benefit” resulting from maintaining the hiking trail while the general public is assigned 15% of the “benefit”. Therefore, Grace Lane residents must pay 85% of the cost for trail maintenance, and the City pays the 15% of the costs assigned to the general public from the General Fund. It is also stated on page 11 that the open space “provides beautification of the surroundings”, and makes the assumption that only the residents of Grace Lane benefit from that; therefore, 100% of the cost of fire fuel suppression in the open space is assigned to the Grace Lane residents. How “beautification of the surroundings” only benefits Grace Lane residents is beyond me. Grace Lane is not gated and cannot block pedestrians and cars. Anyone can park on the street. Nothing prohibits the public from taking in the “beautification of the surroundings”. The open space is not for the exclusive use of Grace Lane residents. Any- one can access and view the “beautification of the surroundings” (i.e., open space) and access the hiking trail, unlike, for instance, a pool in a townhouse complex where only townhouse residents have access to the pool. There are 20 properties on Emerald Bay and Rodeo Drive that enjoy “special benefit” from the open space and its maintenance since the open space actually abuts their backyards. These Rodeo Drive and Emerald Bay properties actually benefit significantly from the open space maintenance since fire fuel suppression reduces the likelihood that a fire started in the open space would burn up the hill to their backyards! Several years ago I requested the City to take whatever steps are necessary to include in the Grace Lane Assessment District those houses sold on Emerald Bay and Rodeo Drive in the future. I also asked the City to include the properties on Rodeo Drive where they have built into the open space to be added to the Grace Lane Assessment District. I was told the City could not do that and would have to have whatever has been built in the open space removed. I do not endorse this since the current owners of those properties may not be responsible for building in the open space, and the fact that whatever was built in the open space was illegal may not have been disclosed to the buyers. I requested that the new development of 7 houses currently in process on Rodeo overlooking the Grace Lane open space be added to the Grace Lane Assessment District since those houses will “benefit” from the open space to the same degree that Grace Lane residents do. The creation of the assessment district is not consistent with the content of page 2, item #6 of the Engineer’s Report indicated above; and, therefore, the Grace Lane Assessment District should be dissolved with the costs absorbed by the City general fund. The developer did not care who would have to pay for the open space maintenance and just wanted to get the development approved; and the City and The Wallace Group failed to do their due diligence to determine appropriately who would enjoy the “special benefit” of the open space. As a result, the Grace Lane residents pay for the open space maintenance on Grace Lane as well as the maintenance of all other open spaces in the City (as well as the 15% of costs assigned to the general public through the assessment district!) by paying sales tax. I have raised concerns numerous times about the Grace Lane Assessment District with the City Council and City staff and requested that the Grace Lane Assessment be reopened and revised to reflect more accurately who actually benefits from the maintenance of the open space and hiking trail. Yet the City has not taken any steps to assign “special benefit” more accurately and fairly. I realize the City may not have sufficient staff to undertake this effort, so making changes to the ballot measure language would provide an easy solution to resolve the inequity of the distribution of the costs for maintaining open spaces. In summary, for the reasons/issues I’ve noted above, I urge you to revise the ballot measure to include: (1) an expiration date for the measure; (2) language in the measure to prevent the revenue generated by the ballot measure from being used to fund Alternative 4C for the Brisco Interchange Project; and (3) language in the measure to prevent the revenue being generated from being used to “Maintenance of Parks and Open Spaces” unless the Grace Lane Assessment District is dissolved or revised as I’ve indicated above. From:Bob & Kathy Cosley To:public comment Subject:Proposed Sales Tax Increase Date:Sunday, July 12, 2020 10:36:32 AM I’m writing this email as I’m unable to attend the upcoming meeting on the proposed 1% sales tax increase in person. However, I would like to state emphatically, as a citizen and a voter within this community, that I am completely against any tax increase proposal. As Californians we are already taxed at the highest rate in the nation and with so many of us who are already devastated financially by this pandemic, this will definitely cause most consumers to cut back further. The Central Coast is truly a gem amongst all the Pacific Coastal Areas. A major part of its’ attraction are its great restaurants and many boutiques which are the lifeblood of our community and draw people from all over the world. These businesses are already facing two near future minimum wage increases, Covid shutdowns and seating restrictions and a long list of additional financial pressures. It will unfortunately be us, the consumer, who will be held responsible for the amount at the bottom of a restaurant check and it is not the city. As stated, most of us, who are the consumers, have been financially devastated by this pandemic but most of us have been forced to learn to live within our means and so should governments learn to live within their means. The government income should be tied to its ecomic development and that to now saddle the bulk of residential road repair on the local businesses that are literally fighting just to stay alive is a catastrophically bad idea. I again implore that this tax increase be shelved and soon, when our community is back up to 100%, governments can again reap some of the financial dividends which our businesses will produce. Respectfully yours, Robert Cosley Resident and registered voter of San Luis Obispo County. From:Debbie Schiro To:public comment Subject:COUNCIL MEETING JULY 14, 2020 Date:Saturday, July 11, 2020 12:33:38 PM Dear AG City Council Members, We are writing to express our strong opposition to any increase in sales tax at this time. We are experiencing a pandemic that has caused the greatest economic damage since the Great Depression. With our county having surpassed the Governor's metric for positive Covid cases this week it is very likely that many of us will be forced to reduce our businesses further in the coming week. The economic uncertainty that we are currently experiencing is unprecedented. We appreciate your flexibility and assistance in helping businesses operate the best they can within the restrictions posed by the State and County. However, now is not the time to add a 1% sales tax. Doing so is ignoring your constituents who are being hardest hit at this time. You state that this 1 percent tax will go to roads, but will it? With all of the businesses struggling, the City's sales tax revenues are down and this money will possibly go to other more pressing matters. Do we need to maintain our roads and keep them from disrepair? Absolutely we do. Will our roads disintegrate in one year if we do not repair them now? I don’t believe so. Is a sales tax the best method for accomplishing this? Not in the least. Perhaps the better vehicle would be a Special Tax. Many of you have expressed concern that a Special Tax is not a viable option. However, the only argument against a Special Tax that has been made is that it would be more difficult to get the 2/3 approval required to pass it. The advantage of a Special Tax is that it would guarantee the road work would get done, as a Special Tax requires by law that the monies are spent for the specified purpose. We submit to you that you will have a much more difficult time getting the 50% required approval for a 1 percent sales tax when you are opposed by a large majority of local businesses. On the other hand, If the local business community and local government were united and working together, we would have a much better chance of getting the funds from a Special Tax that has a beginning date and an end date. Raising taxes FOREVER on everyone at this time is insensitive. We implore you to table this for a later date. We have considered our local City Government a “pro business” group up until this point. You have all claimed in your past and present campaigns that you are “pro business.” Rest assured, the business community will judge you by your actions. A "yes" vote to put this on the ballot will not be forgotten anytime soon, certainly not by November 3rd. -- Frank Schiro Debbie Schiro Bill Hales Ron Meier Mercedes Meier Daryl Cope ROOSTER CREEK TAVERN / MASON BAR & KITCHEN Krista Bandy HELLO VILLAGE Luis Padilla GINA'S ITALIAN Denise Andreini CAFE ANDREINI Lance Gonzalez SPORTS DUGOUT From:Caren Ray Russom To:Jessica Matson Subject:Public comment Date:Saturday, July 11, 2020 9:42:25 AM Received on Facebook from Andy Penchmann: Now is not the time for a tax increase, a lot of people are struggling to pay bills, keep their business open, and put food on the table! Also stay out of the mask business, it is not place to enforce a illegal mandate from a simple person with absolute power. I already let Jimmy know I will do everything in my power to defeat his re-election if he continues to push fines for no masks. People will decide if they want to wear a mask. Caren Ray Russom Mayor, City of Arroyo Grande