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RES-2014-139RESOLUTION NO. 2014 -139 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ORDERING THE SUBMISSION OF PROPOSED AMENDMENTS TO SECTION 1221 (UTILITY RATES) OF THE CITY CHARTER TO THE QUALIFIED ELECTORS OF THE CITY AT THE GENERAL MUNICIPAL ELECTION PREVIOUSLY CALLED AND CONSOLIDATED ON NOVEMBER 4, 2014 (MEASURE NO. N — ANAHEIM LOCAL SERVICES MEASURE), AUTHORIZING AND SETTING PRIORITIES FOR THE FILING OF WRITTEN ARGUMENTS TO BE SUBMITTED TO THE ELECTORS OF THE CITY; PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS; AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE CHARTER AMENDMENT MEASURE WHEREAS, pursuant to Section 1302 of the City Charter, the City Council of the City of Anaheim adopted Resolution Nos. 2014 -089 and 2014 -090, calling and giving notice of the holding of a general municipal election to be held in the City of Anaheim on November 4, 2014, and requesting that the Orange County Board of Supervisors consolidate the General Municipal Election with the statewide General Election on such date pursuant to Section 10403 of the Elections Code; and WHEREAS, pursuant to authority provided by Section 3 of Article XI of the Constitution of the State of California, Section 1300 of the Anaheim City Charter, Section 9255(b)(1) of the Elections Code, and Section 34458(a) of the Government Code of the State of California, the City Council of the City of Anaheim ( "City ") desires to submit to the qualified electors of said City a proposed Charter amendment relating to Article XII Fiscal Administration, Section 1221 Utility Rates ( "Section 1221 ") at a regularly scheduled general municipal election; and WHEREAS, Article XIII C, Section 2(b), of the Constitution of the State of California allows the voters of the City to approve measures to fund City services; and WHEREAS, Section 1221 has called for a gross revenue transfer from its water and electric utilities to the City's general fund to support general City services since 1976 when voters first approved a transfer of up to 8% the first year, 6% the second year, and 4% in the third year and thereafter; and WHEREAS, the 4% transfer in Section 1221 was again approved by the voters in 1990 when the three -year phase -in language from 1976 related to the general fund transfer was deleted; and WHEREAS, the City Council has determined that it is appropriate to support general City services through the transfer of up to 4% of the operating revenue of the water and electric utilities and seeks to reaffirm, authorize, and clarify the City's authority to transfer operating revenues earned by the water and electric utilities to the City's general fund as specified in Section 1221; and WHEREAS, the City Council of the City of Anaheim is authorized by the California Constitution, the Anaheim City Charter, and by state statute to submit said proposed Charter amendment measure to the Anaheim City Charter to the qualified electors of said City at a general municipal election to be held the same date as the November 4, 2014 statewide general election; and WHEREAS, California Elections Code Section 9282 authorizes the filing of written arguments for or against a City measure and Section 9287 establishes priorities for filing written arguments in favor of and against City measures; and WHEREAS, the City Council desires to authorize the filing of written arguments for and against the adoption of the proposed Charter amendment measure by the Mayor and other members of the City Council in accordance with Elections Code section 9282(b); and WHEREAS, California Elections Code Section 9285 authorizes the City Council by majority vote to adopt provisions for the filing of rebuttal arguments to a City measure submitted at municipal elections; and WHEREAS, Elections Code section 9280 requires the City Attorney, when directed by the City Council, to prepare an impartial analysis of all ballot measures showing the effect of the measure on the existing law and the operation of the measure. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1 . ORDER OF THE MEASURE ONTO BALLOT; PROPOSED MEASURE That, pursuant to Section 3 of Article XI of the California Constitution, Section 1300 of the Anaheim City Charter, Section 34458(a) of the Government Code, and Section 9255(b)(1) of the Elections Code, it is hereby ordered that the following ballot measure proposing an amendment to the Charter of the City of Anaheim be submitted to the qualified electors of said City at the general municipal election to be held in said City on November 4, 2014: The full text of Measure No. N (with additions to and deletions from the current Charter text indicated thereon) is set forth on Attachment No. 1, attached hereto and incorporated herein by this reference as if set forth in full. Measure No. N shall appear upon the ballots for said general municipal election in the following form: 2 MEASURE NO. N Yes No ANAHEIM LOCAL SERVICES MEASURE Shall Section 1221 of the Anaheim City Charter regarding water and electric rates be amended to: update language regarding financial reserves, reaffirm and authorize the transfer of money to the City's general fund to support general City services, remove unnecessary language that duplicates a requirement of the California Constitution, and authorize programs to assist non - residential and residential customers? SECTION 2 : QUALIFIED VOTERS That only the qualified electors of the City of Anaheim are entitled to vote at said election on Measure No. N and that if a majority of the qualified electors voting on Measure No. N votes in favor of Measure No. N , then Measure No. N shall be approved. SECTION 3 : CITY CLERK That the City Clerk is authorized, instructed and directed to take all action necessary to place the measure described herein on the ballot for the General Municipal Election. SECTION 4 . AUTHORIZATION OF MEMBERS OF THE CITY COUNCIL TO FILE AND AUTHOR BALLOT ARGUMENTS REGARDING MEASURE That Elections Code section 9282(b) expressly permits the City Council to authorize members of the City Council to prepare, author and file a written argument for or against any City measure, including proposed Charter amendments. Pursuant to Elections Code section 9282(b), the City Council hereby authorizes the Mayor and/or City Council members to prepare, author and file written arguments in favor of or against Measure No. N described in Section 1 of this Resolution, not exceeding 300 words, no later than 5:00 p.m. on Monday, August 4, 2014. SECTION 5. SETTING PRIORITIES FOR THE FILING OF WRITTEN ARGUMENTS That, in accordance with Section 9283 of the Elections Code of the State of California, the printed names and signatures of not more than five authors shall appear with any argument submitted in accordance with this resolution. That, pursuant to Elections Code Section 9287, in the event more than one argument for or more than one argument against the ballot measure set forth in Measure No. N_ is submitted to the City Clerk within the time prescribed, the City Clerk shall select one of the arguments in favor and one of the arguments against each measure for printing and distribution to the voters. In selecting the argument, the City Clerk shall give preference and priority, in the order named, to the arguments of the following: (a) The Mayor and /or members of the City Council. (b) The individual voter, or bona fide association of citizens, or combination of voters and associations, who are the bona fide sponsors or proponents of the measure. (c) Bona fide association of citizens. (d) Individual voters who are eligible to vote on the measure. That if more than one argument in favor or more than one argument against Measure No. N are timely submitted to the City Clerk and such arguments for the or against the measure, respectively, are authorized by individuals and /or associations within the same priority group identified above, then the City Clerk shall give preference and priority to the argument initially filed with the City Clerk first in time. SECTION 6 . FILING OF REBUTTAL ARGUMENTS That, pursuant to Section 9285 of the California Elections Code, when the City Clerk has selected the arguments for and against Measure No. N described in Section 1 of this resolution that will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of Measure No. N to the authors of the argument against Measure No. N , and copies of the argument against Measure No. N to the authors of the argument in favor of Measure No. N . The authors may prepare and submit rebuttal arguments not exceeding 250 words. The rebuttal arguments shall be filed with the City Clerk not later than 5:00 p.m. on Thursday, August 14, 2014. Rebuttal arguments shall be printed in the same manner as direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut. That the provisions of this section shall only apply to the election called in this resolution for the proposed Charter amendment measure described in Section 1 of this resolution at the General Municipal Election to be held in the City of Anaheim on November 4, 2014. After that election, this Section 6 shall be of no further force and effect. SECTION 7 . DIRECTION TO PREPARE IMPARTIAL ANALYSIS Pursuant to Elections Code section 9280, the City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk by no later than 5:00 p.m. on Monday, August 4, 2014. SECTION 8 . SEVERABILITY That the City Council of the City of Anaheim hereby declares that should any section, paragraph, sentence or word of this resolution be declared for any reason to be invalid, it is the intent of the Council that it would have passed all other portions of this resolution independent of the 4 elimination here from of any such portion as may be declared invalid. SECTION 9 . CITY CLERK CERTIFICATION That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 22nd day of July , 2014, by the following roll call vote: AYES: Council Members Eastman, Brandman and Kring NOES: Mayor Tait, Council Member Murray ABSENT: None ABSTAIN: None ATTEST( CITY CLERK OF THE CITY OF ANAHEIM CITY NAHE MAYOR OF THE CITY OF ANAHEIM 103543 5 Attachment No. 1 The full text of proposed Charter Amendment measure is on the following pages. Attachment No. 1 to City Council Resolution Regarding Anaheim Local Services Measure CHARTER AMENDMENT MEASURE NO. N Section 1 TEXT OF AMENDMENT TO ANAHEIM CITY CHARTER The City Charter of the City of Anaheim is hereby amended as follows (underlining showing additions and s tri ke thfoug showing deletions): Section 1221. UTILITY RATES. The City Council shall establish rates, rules and regulations for the water and electrical utilities. The rates shall be sufficient with respect to each utility to pay: (a) For operations and maintenance of the system. (b) For payment of principal and interest on debt. (c) For creation and maintenance of financial reserves, adeqiame to asswe debt bonds eutstanding. (d) For capital construction of new facilities and improvements of existing facilities, or maintenance of a reserve fund for that purpose. (e) For payments to the general fund of the City (exclusive of those amounts paid pursuant to subsection (a) of this Section 1221) in each fiscal year in an amount equal to, or less than, four percent (4 %) of the operating revenue earned by the utility during the previous fiscal year. Rates shall be reviewed by the City Council periodically to insure that financial goals are being accomplished. Rates shall be uniform for all consumers within the same class,, and shall be based on the °st of senira° °nt for the ehvs; but different rate schedules may be applied to different classes of consumers. Notwithstanding the foregoing, the City Council may establish, and revise from time to time, ratepayer discount and other programs to assist residential and non- residential customers in the payment of their utility bills and the costs of such discount and other programs may be paid from utility revenues. Section 2 RATIFICATION OF UTILITY RATE TRANSFER Pursuant to Article XIII C, section 2, subdivision (b) of the California Constitution, subdivision (e) of Section 1221 of the Anaheim City Charter is hereby ratified and amended to clarify the City's authority to transfer operating revenue earned by the water and electric utilities to the City's general fund as specified in that subsection. Section 3 BALLOT DESCRIPTION As provided in Government Code section 34458.5, the following ballot description is included in this proposed Charter Amendment measure: CHARTER AMENDMENT (Section 1221): This Charter Amendment measure would amend the City Charter to: update language regarding financial reserves, reaffirm and authorize the transfer of money to the City's general fund to support general City services pursuant to Article XIII C, section 2, subdivision (b) of the California Constitution, remove unnecessary language that duplicates a requirement of the California Constitution, and authorize programs to assist non - residential and residential customers. This amendment does not give the City Council power to raise its compensation or that of other City officials without voter approval. Section 4 SEVERABILITY It is the intent of the people that the provisions of this Charter Amendment measure are severable and that if any provision of this Charter Amendment measure, or the application thereof to any person or circumstance, is held invalid such invalidity shall not affect any other provision or application of this Charter Amendment measure which can be given effect without the invalid provision or application. Section 5 EFFECTIVE DATE This Charter Amendment measure shall become effective in the manner allowed by law. 103545