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Home My Public Portal AboutMinutes TOWN OF TRUCKEE mum To REVENUE MEASURE FOR HOUSING o CD ADVISORY COMMITTEE P E F 1>.i - 993 MINUTES Q6/fen ?�. or,te°' November 18, 2019, 4:00 p.m. ed'883 ,'' Ineor4 Town Hall - Administrative Center 10183 Truckee Airport Road, Truckee, CA 1. CALL TO ORDER — Vice Mayor Polivy, called the meeting to order at 4:00 p.m., and provided a brief a background on the history of housing issues Truckee is facing. 2. ROLL CALL: all committee members introduced themselves, each providing a brief bio. Committee Members Present: Robert Leftwich, Truckee Chief of Police; Tony Commendatore, Town of Truckee Town Council Member; Bill Seline, Truckee Fire Chief; Seana Doherty, Mountain Housing Council; Stefanie Olivieri, housing advocate; Jan Zabriskie, housing advocate; Carolyn Wallace Dee, housing advocate; David Polivy, Truckee Town Council Vice Mayor; Paco Lindsay, member at large; Joan Jones, retail business owner; Ted Owens, Truckee Chamber of Commerce; Alexis 011ar, Mountain Area Preservation; Cassie Hebei, Truckee Downtown Merchants Association; Alison Schwedner, housing advocate; Jon Borden, TOT-assessed property representative; Jim Winterberger, TOT-assessed property representative;Troy Ortiz, Contractors Association of Truckee-Tahoe; and Facilitator Charles Heath, TBWB Consultants. Staff Present: Jennifer Masters, Administrative Technician; Andy Morris, Town Attorney; Jeff Loux, Town Manager; Kim Szczurek, Administrative Services Director; Hilary Hobbs, Management Analyst; and Yumie Dahn, Senior Planner. 3. PRESENTATIONS— 3.1. Overview of Revenue Measure Planning Timeline. 3.2. Information on Identified Housing Needs, Funding Requirements, and Revenue Sources. Yumie Dahn provided a presentation to the committee (presentation on file with the Town Clerk). There was a question as to whether open space and emergency response will be discussed. Mr. Heath explained what information needs to be discussed to move forward with a ballot measure, including the use of funds. 3.3. Summary of Findings from Public Opinion Polling. Mr. Heath provided a single presentation to the committee that enveloped items 3.1 and 3.3 (presentation on file with the Town Clerk). • Moving forward, the committee will need to decide whether to go with a simple majority or 2/3 majority requirement for measure passing. • He stated during the polling process, those polled were asked the entire list of questions, and the questions were randomized to eliminate polling fatigue and lack of Town of Truckee Revenue Measure for Housing Advisory Committee Page 1 interest in answering questions. • Locally controlled taxes have a greater satisfaction and approval rate. • The November 2020 Election appears to be the most logical ballot on which to place this measure. • In order to get on the November 2020 ballot, Council has a July 1, 2020 deadline to adopt the legal document to place the measure on ballot. • General Taxes must be placed on the ballot at the same time the Council election is on the ballot. • Once the measure is on the ballot, the Town cannot expend funds to advocate for or against a measure. The Town can, however, utilize funds on informational outreach that is factual and unbiased. • Question as to why sales tax has not been looked at for the funding source. • With 80% support, this measure could go on the ballot as a special tax with a likely possibility of approval. • Taxes can be repealed by simple majority regardless of the tax type. • Transient Occupancy Tax can be tracked back to the Town's incorporation. • Sunset date was not specified in how the potential ballot measure language was polled. The verbiage "until ended by the voters" is generally widely accepted. 4. DISCUSSION ITEMS — 4.1. Initial Discussion of Key Decision Points. a. Election Timing • As discussed above, the timeframe for the November 2020 ballot is July 1, 2020. We are past the deadline for the March Primary. • The options are as follows: November 2020, a special election - which is very costly and is only an option for a special tax, or wait until November 2022. • It needs to be very clear to our voters that this is not going to affect them, i.e. tax is paid by overnight visitors. • There have been rumblings of a citizen initiated ballot measure - unsure of the validity of this hearsay. • Approximately six months before July 1st is the requirement for submittal to the Town for initiatives. • The goal is to continue Truckee Business Improvement District (TBID) in a robust way, and to not have this process usurp that process. • Sept. 30, 2020 is the sunset date for TBID. • What do the numbers look like from the short term rental (STR) market? • The general consensus in the discussions at the TBID level is that the desire is to make the TBID work for the businesses,that it works, and continues to exist. The Town and the Chamber and TBID have aligned and have agreed to work together. • The voters of the TBID are owners of the assessed lodging properties and are not the same as the permanent voters who would be voting on the TOT. • Privately owned rentals likely will not raise their voices unless an entity like Vacation Rental by Owner (VRBO) says it is bad for business. • We will hear from the hoteliers and the management companies. • When TBID was initiated, the goal was "heads in beds". • TBID funds cannot be used as mitigation measures. The statute states it needs to be a benefit to those being assessed. Town of Truckee Revenue Measure for Housing Advisory Committee Page 2 b. General Tax or Special Tax • Discussion regarding companion measure that might be an option with TOT. • Some may want the flexibility of a general tax, but have a companion measure that informs Council that the people have advised they want the taxes to be spent for A, B, or C. • Companion measures place political pressure on the governing body to direct the passage of the measure. • Downfall of companion measures is that sometimes the companion measure will pass, and the tax measure itself will not. • Discussed the bonding differences between a special vs. general tax. • A special tax is limited for its use, and viewed that way. • The concept of affordable housing is strong enough to carry a 2/3 vote, but it hinders the ability to modify the use of this tax in the long run if we were to go with the special tax. • The purpose of this committee is to delineate what issues these funds should be earmarked for if the route of special tax is chosen. • If we are going to zero in on addressing one or three things, the message is going to need to be specific to those things. • In a recession, a general fund tax is going to go to basic services, but a special tax can only be used for the thing it was passed to fund. • Discussion about how to create a special tax that aids in housing, and emergency preparedness. o The measure could be written as in tiered fashion where once the primary issue is satisfied, the funds could be used for other things as needed. • Developing a dedicated source of funding for housing is what began 3 years ago. We wouldn't be at this table without the need for housing. • $700,000 is not enough money to divide between many pots and be successful. A special tax has a high bar, and we don't want to mess that up. Separating the funds into many buckets will make it harder to get things done. • We need to go forward with clarity and transparency to the voters. This committee was created for housing, and that's what the funds should be used for. • TOT has broad support, but it will negatively impact entrepreneurs in the community who rely on visitors to our community. • Interest in seeing the cyclical nature of the TOT. • Important to remember that our voters are here because of this environment, so we should place that as a priority. • We should look at whether or not to have a sunset date in order to give the voter the ability to assess whether they feel it has been successful or not. • Measures V&R both have sunset dates. • Special tax for housing, carbon neutrality, and emergency preparedness. • Sunsetting, as long as it does not restrict our ability to bond. Housing is so important, and creating housing locally does create an increase in environmental benefit because it will eliminate the need to commute in from out of the area. c. Tax Rate • The costs of travel stay are being discussed by TBID; having an additional 2% TBID, and another additional 2% is a 14% tax on the stay— it may be better to aim for 13%. Town of Truckee Revenue Measure for Housing Advisory Committee Page 3 d. Duration • Discussion about the tax being indefinite until repealed by the voters, as well as the option of having a sunset date. e. Use of Funds • This discussion occurred under item 4.b. above. f. Ballot Measure Roles and Responsibilities • Town is to provide impartial and factual information. • Role of advocate groups are to further the measure. 4.2. Additional Information Needed at Next Meeting. 5. ADJOURNMENT— 6:10 p.m. To the regular meeting of the Town of Truckee Revenue Measure for Housing Advisory Committee, December 16, 2019, 4:00 p.m. at 10183 Truckee Airport Rd., Truckee, CA 96161. Approved: Respectfully submitted by: / lPk.4edc56 Hilary Hob s, Management Analyst Jennifer L. Masters Administrative Technician Town of Truckee Revenue Measure for Housing Advisory Committee Page 4