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· Narrowing the legal threshold from “reasonable” to “actual” costs for fees applied <br />to local services, permits, licenses, etc. Further, the measure authorizes new <br />avenues to challenge “actual” costs by enabling a payor to also challenge in <br />court whether the costs are “reasonable.” Opens up further litigation and debate <br />by replacing the existing standard that fees and charges bear a “fair and <br />reasonable relationship to the payors burdens and benefits” with a more rigorous <br />“proportional to the costs created by the payor” standard. <br /> <br />ALTERNATIVES <br />The City Council may choose to support this measure or take no position. <br /> <br />FISCAL IMPACT <br />On April 9, the City Council approved preparation of a potential general sales tax <br />measure for the November 2018 ballot. Exploration of a revenue measure is one of the <br />components of the City’s Financial Sustainability Plan to increase revenues in light of an <br />anticipated $12 million deficit within the next five years. The proposed ballot measure <br />would make it more difficult to pass this general sales tax measure or other tax <br />measures to support general City operations in the future. <br /> <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under CEQA as defined in CEQA Guidelines, section <br />15378, because it has no potential for resulting in either a direct or reasonably <br />foreseeable indirect physical change in the environment. <br /> <br /> <br /> <br /> <br /> <br />KIMBRA MCCARTHY <br />ASSISTANT CITY MANAGER – ADMINISTRATIVE SERVICES <br /> <br /> <br />MELISSA STEVENSON DIAZ <br />CITY MANAGER <br /> <br />ATTACHMENTS <br />1. Resolution Opposing the Proposed Ballot Measure <br />9.C. - Page 3