CC Resolution No. 11-104 November 8, 2011 General Municipal Election, Increasing Transient Occupany Tax RESOLUTION NO. 11 -104
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CUPERTINO SUBMITTING TO THE VOTERS AT THE NOVEMBER 8,
2011 GENERAL MUNICIPAL ELECTION AN ORDINANCE AMENDING TITLE 3
OF THE CUPERTINO MUNICIPAL CODE INCREASING THE TRANSIENT
OCCUPANCY TAX
WHEREAS, since 1965 transient hotel guests have paid a Transient Occupancy Tax
(TOT) on hotel rooms in Cupertino. Like many other California cities, Cupertino uses this
funding to provide essential public services through its general fund, and without this
revenue, the City would be forced to cut funding that supports: library services,
neighborhood police patrols, rapid 9 -1 -1 emergency response times, city street maintenance,
current levels of police officers, and school traffic safety and crossing guards; and
WHEREAS, the rate of the TOT has been i:en percent (10 %) since 1991; and
WHEREAS, many residents live in Cupertino because it offers a higher level of service,
programs and quality of life than neighboring cities; and
WHEREAS, TOT is an important revenue source and increasing that revenue to the
general fund will ensure that the City can maintain the high quality of public safety, support
library services, maintain city streets, and continue assisting with school traffic safety and
crossing guards; and
WHEREAS, TOT is paid by hotel guests only and not directly by Cupertino residents;
and
WHEREAS, an increase in the TOT rate to twelve percent (12 %) would help maintain
city services, including library services, neighborhood police patrols, city streets, 9 -1 -1
emergency response times, current levels of police officers, and school traffic safety and
crossing guards.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. At the November 8, 2011 General Municipal Election, there shall be submitted to the
qualified voters of the City of Cupertino an ordinance amending Title 3 of the Cupertino
Municipal Code, to amend Chapter 3.12.030, the Transient Occupancy Tax.
2. The text of the ballot measure is attached to this resolution as Exhibit A and
incorporated herein by this reference. The text of the measure shall not be printed in the
sample ballot pamphlet materials, but copies of the measure shall be available from the
City Clerk.
3. The procedures for voting for and against said question shall be those established by
Santa Clara County and the question shall be printed in substantially the following form:
Cupertino Transient Occupancy Tax. To maintain
and protect general city services, including library
services, neighborhood police patrols, rapid 9 -1 -1 YES
emergency response times, city street maintenance,
current levels of police officers and school traffic
safety and crossing guards, shall the City of
Cupertino increase the existing transient occupancy
tax paid by hotel guests from 10% to 12% with NO
proceeds placed in the City's General Fund for local
use, requiring annual audits and public expenditure
review?
4. The ballots to be used at the election shall be in the form and content as required by
law.
5. The polls shall be open at 7:00 am of the date of the election and shall remain open
continuously from that time until 8:00 pm of the same day when the polls shall be closed, except
as provided in Section 14401 of the California Elections Code.
6. The City of Cupertino requests that the Registrar of Voters of Santa Clara County
conduct the elections and canvass the returns. The Registrar shall be reimbursed for all costs
incurred by said services.
7. The City of Cupertino requests that said election be consolidated with other November
elections and that this governing body consents to such consolidation.
8. The vote requirement for passage of the measure is a majority of the votes cast (50%
plus 1).
9. In all particulars not recited in this resolution, the election hereby called shall be as
provided by state and local law for holding municipal elections in the City.
10. 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.
11. Arguments in favor or against the proposed measure shall be filed with the City Clerk
by Tuesday, July 5, 2011 at 5:00 p.m.
12. Rebuttals to arguments in favor or against the proposed measure shall be filed with
the City Clerk by Friday, July 15, 2011 at 5:00 p.rn.
13. The City Attorney shall prepare an impartial analysis of the measure not to exceed
500 words in length and which is to be filed with the County no later than Friday, August 19,
2011.
14. The City Clerk shall cause the following statement to be printed in the Impartial
Analysis, to be prepared by the City Attorney: "The above statement is an impartial analysis of
Measure . If you desire a copy of the measure, please call the City Clerk's office at 408-
777 -3223 and a copy will be mailed at no cost to you."
15. The City Clerk shall publish a notice of election and synopsis of the measure
one time in a newspaper of general circulation.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino
this 21st day of June, 2011 by the following vote:
Vote Members of the City Council
AYES: Wong, Santoro, Chang, Mahoney
NOES: Wang
ABSENT: None
ABSTAIN: None
ATTEST: APPROVED
• r • k V
4/i1.....- 1 i A i ► _
kv . Kim Smith, City Clerk 1 Gilbert Wong, Ma •
City of Cupertino City of Cuperti
ORDINANCE NO. 11-2089
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING CHAPTER 3.12.030 OF THE MUNICIPAL CODE INCREASING THE
TRANSIENT OCCUPANCY TAX RATE
THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY ORDAIN
AS FOLLOWS:
WHEREAS, since 1965 transient hotel guests have paid a Transient Occupancy Tax (TOT)
on hotel rooms in Cupertino. Like many other California cities, Cupertino uses this funding to
provide essential public services through its general fund, and without this revenue, the City
would be forced to cut funding that supports: library services, neighborhood police patrols, rapid
9-1-1 emergency response times, city street maintenance, current levels of police officers, and
school traffic safety and crossing guards; and
WHEREAS, the rate of the TOT has been ten percent (10%) since 1991; and
WHEREAS, many residents live in Cupertino because it offers a higher level of service,
programs and quality of life than neighboring cities; and
WHEREAS, TOT is an important revenue source and increasing that revenue to the general
fund will ensure that the City can maintain the high quality of public safety, support library
services, maintain city streets, and continue assisting with school traffic safety and crossing
guards; and
WHEREAS, TOT is paid by hotel guests only and not directly by Cupertino residents; and
WHEREAS, an increase in the TOT rate to twelve percent (12%) would help maintain city
services, including library services, neighborhood police patrols, city streets, 9-1-1 emergency
response times, current levels of police officers, and school traffic safety and crossing guards.
NOW THEREFORE, the People of the City of Cupertino do ordain as follows:
Section I
. Code Amendment. Chapter 3.12.030. of the Cupertino Municipal Code is
hereby amended to read as follows:
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax
in the amount of twelve ten percent of the rent charged by the operator. The tax constitutes a
debt owed by the transient to the City, which is extinguished only by payment to the operator or
to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is
paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each
installment. The unpaid tax shall be due upon the transient’s ceasing to occupy space in the
hotel. If for any reason the tax due is not paid to the operator of the hotel, the Tax Administrator
may require that such tax is paid directly to the Tax Administrator.
Ordinance No. 11-2089
Section 2.
Effective Date. This Ordinance shall take effect January 1, 2012 if
approved by a majority vote of the electorate voting on the issue, at the General Municipal
Election to be held November 8, 2011 within the City of Cupertino. If so approved, the City
Clerk shall certify to adoption of this Ordinance.
Section 3.
Severability. Should any provision of this Ordinance, or its application to
any person or circumstance, be determined by a court of competent jurisdiction to be unlawful,
unenforceable or otherwise void, that determination shall have no effect on any other provision
of this Ordinance or the application of this Ordinance to any other person or circumstance and, to
that end, the provisions hereof are severable.
Section 4.
Amendment or Repeal. Chapter 3.12.030 of the Cupertino Municipal
Code may be repealed or amended by the City Council without a vote of the people. However,
as required by Article XIIIC of the California Constitution, voter approval is required for any
amendment provision that would increase the rate of any tax levied pursuant to this Ordinance.
The People of the City of Cupertino affirm that the following actions shall not constitute an
increase of the rate of a tax:
1.The restoration of the rate of the tax to a rate that is no higher than that set
by this Ordinance, if the City Council has acted to reduce the rate of the
tax;
2.An action that interprets or clarifies the methodology of the tax, or any
deduction applicable to the tax, as long as interpretation or clarification
(even if contrary to some prior interpretation or clarification) is not
inconsistent with the language of this Ordinance.
3.The establishment of a class of persons 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 specifically set forth
in this Ordinance); and
4.The collection of the tax imposed by this Ordinance, even if the City had,
for some period of time, failed to collect the tax.
Section 5.
Ratification of Prior Tax. The voters of the City of Cupertino hereby
ratify and approve the past collection of the Transient Occupancy Tax under Chapter 3.12.030 of
the Cupertino Municipal Code as it existed prior to the effective date of this Ordinance.
Section 6.
Certification. The Mayor is hereby authorized to sign where indicated
below to certify to the adoption of this Ordinance.
Ordinance No. 11-2089
th
PASSED, APPROVED and ADOPTED by the People of the City of Cupertino this 8
day of November, 2011.
/s/ Gilbert Wong
Gilbert Wong
Mayor, City of Cupertino
ATTEST:
/s/ Kim Smith
____________________
Kim Smith, City Clerk