Special City Council

Agenda Special Meeting of the Bell City Council/Bell Community Housing Authority/Successor Agency to the Bell Community Redevelopment Agency/ Bell Public Finance Authority Tuesday, November 14, 2023 5:00 P.M. OPEN SESSION BELL COMMUNITY CENTER 6250 PINE AVENUE, BELL CA 90201 Fidencio J. Gallardo Mayor Ana Maria Quintana Monica Arroyo Vice-Mayor Council Member Alicia Romero Ali Saleh Council Member Council Member  Welcome to the City Council Meeting The Bell City Council and staff welcome you. This is your City Government. Individual participation is a basic part of American Democracy and all Bell residents are encouraged to attend meetings of the City Council. Regular City Council meetings are held the second and fourth Wednesday of the month at 7:00 p.m., Bell Community Center, 6250 Pine Avenue. For more information, you may call City Hall during regular business hours 8:00 a.m. to 4:00 p.m., Monday through Friday at (323) 588-6211 Extension 2615. City Council Organization There are five City Council members, one of whom serves as Mayor and is the presiding officer of the City Council. These are your elected representatives who act as a Board of Directors for the City of Bell. City Council members are like you, concerned residents of the community who provide guidance in the operation of your City. Addressing the City Council If you wish to speak to the City Council on any item which is listed or not listed on the City Council Agenda, please complete a Request to Speak Card available in the back of the City Council Chambers. Please submit the completed card to the City Clerk prior to the meeting. The Mayor will call you to the microphone at the appropriate time if you have filled out a Request to Speak Card. At that time, approach the podium and please clearly state your name and address, and proceed to make your comments. Compliance with Americans with Disabilities Act The City of Bell, in complying with the Americans with Disabilities Act (ADA), request individuals who require special accommodation(s) to access, attend, and or participate in a City meeting due to disability. Please contact the City Clerk’s Office, (323) 588-6211, Ext. 2615, at least one business day prior to the scheduled meeting to ensure that we may assist you. Statement Regarding Compensation for Members of the Bell City Council Compensation for the members of the Bell City Council is $673 a month. In accordance with Government Code Section 54952.3, Councilmembers will not receive any additional compensation or stipend for the convening of the following regular meetings: Successor Agency to the Bell Community Redevelopment Agency, the Bell Community Housing Authority, the Bell Public Finance Authority, the Bell Surplus Property Authority, and the Bell Solid Waste Authority.  SPECIAL JOINT MEETING OF THE Bell City Council/Bell Community Housing Authority/Successor Agency to the Bell Community Redevelopment Agency/Bell Public Finance Authority Tuesday, November 14, 2023 5:00 P.M. Open Meeting Location: Bell Community Center, 6250 Pine Avenue, Bell CA 90201 MEETING WILL BE HELD IN-PERSON AT THE BELL COMMUNITY CENTER PUBLIC COMMENT: If you wish to make a comment on items listed on the agenda, you may attend the meeting in-person at Bell Community Center. Please complete a Request to Speak Card available in the location and wait until the mayor calls you to approach the podium. Please clearly state your name and address and proceed to make your comments. You may also submit input electronically through a temporary public comment email established for City of Bell City Council meetings at cityclerk@cityofbell.org. Your written comment must be submitted by 4pm on Tuesday, November 14, 2023. Any emails received after the time indicated will not be included in the record. Written Comments will be subject to the three minute time limitation (approximately 350 words). The meeting will be recorded and live streamed on the City’s website at http://www.cityofbell.org/?NavID=101 Call to Order Roll Call of the City Council in their capacities as Councilmembers/Members of all Related Agencies: Arroyo, Romero, Saleh, Quintana, and Gallardo Pledge of Allegiance Communications from the Public This is the time members of the public may address the City Council and related Authorities and Agencies on items that are listed on the agenda only. (Each speaker is limited to three minutes) Business Session 1. Economic Development Discussion. (City Council) Recommendation: It is recommended that the City Council receive and file. 2. Introduction and Conduct the First Reading, By Title Only, of an Ordinance of the People of the City of Bell Adding Chapter 3.22 to Title 3 of the Bell Municipal Code, relating to the Establishment of a New Additional General Transaction and Use Tax. (City Council) Recommendation: It is recommended that the City Council introduce and conduct the first reading, by title only, of an “ORDINANCE OF THE PEOPLE OF THE CITY OF BELL ADDING CHAPTER 3.22 TO TITLE 3 OF THE BELL MUNICIPAL CODE, RELATING TO THE ESTABLISHMENT OF A NEW ADDITIONAL GENERAL TRANSACTIONS AND USE TAX”. 3. Authorize the Police Chief to accept and administer the Office of Traffic Safety (OTS), Special Meeting of the Bell City Council and Related Agencies November 14, 2023  Selective Traffic Enforcement Program (STEP) Grant to reduce the number of traffic fatalities and injuries. (City Council) Recommendation: It is recommended that the City Council read by title only, waive further reading and adopt Resolution No. 2023-85 titled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL AUTHORIZING AN INTER-FUND ADANCEMENT, IN THE AMOUNT OF $90,000 FROM THE GENERAL FUND UNRESTRICTED FUND BALANCE TO THE POLICE DEPARTMENT’S OFFICE OF TRAFFIC SAFETY FUND ACCOUNT FOR THE PURPOSE OF PROVIDING OVERTIME TO REDUCE TRAFFIC COLLISIONS YEAR 2023-2024 BUDGET AMENDMENT 4. Approve the City of Bell Vehicle Replacement and Maintenance Program, Authorize the City Manager to Execute a Master Equity Agreement and Vehicle Maintenance Agreement between the City of Bell and Enterprise Fleet Management Inc., Issuance of a Purchase Order to Enterprise in the amount of $400,000 and Issuance of Purchase Order to Folsom Ford in the amount of $128,866.98. (City Council) Recommendation: It is recommended that the City Council: 1. Approve the Vehicle Replacement and Maintenance Program for the City of Bell. 2. Authorize the City Manager to execute a Master Equity Agreement and Vehicle Maintenance Agreement between the City of Bell and Enterprise Fleet Management Inc. 3. Authorize the designated surplus vehicles and authorize the Director of Finance to liquidate the designated surplus vehicles. 4. Authorize issuance of a purchase order not to exceed $400,000 to Enterprise Fleet Maintenance inc. 5. Authorize the Purchase of two (2) Ford Interceptors and issuance of a Purchase Order to Folson Ford in the amount of $128,866.98. Next Regular Meeting, Wednesday, December 13, 2023 I, Angela Bustamante, City Clerk of the City of Bell, certify that a true, accurate copy of the foregoing agenda was posted on November 13, 2023 at least twenty-four (24) hours prior to the meeting as required by law. ________________________________ Angela Bustamante, City Clerk Special Meeting of the Bell City Council and Related Agencies November 14, 2023  AGENDA ITEM NO. 1 1. Economic Development Discussion. (City Council) Recommendation: It is recommended that the City Council receive and file.  AGENDA ITEM 2 City of Bell Agenda Report DATE: November 14, 2023 TO: Mayor and Members of the City Council FROM: Michael L. Antwine II, City Manager APPROVED Michael L. Antwine II, (e-signature) BY: ________________________________________ Michael L. Antwine II, City Manager SUBJECT: Introduction and Conduct the First Reading, By Title Only, of an Ordinance of the People of the City of Bell Adding Chapter 3.22 to Title 3 of the Bell Municipal Code, relating to the Establishment of a New Additional General Transaction and Use Tax. RECOMMENDATION: It is recommended that the City Council introduce and conduct the first reading, by title only, of an “ORDINANCE OF THE PEOPLE OF THE CITY OF BELL ADDING CHAPTER 3.22 TO TITLE 3 OF THE BELL MUNICIPAL CODE, RELATING TO THE ESTABLISHMENT OF A NEW ADDITIONAL GENERAL TRANSACTIONS AND USE TAX” BACKGROUND: A. City’s Financial Condition The City’s current and future financial condition is of significant concern. The City’s economic condition has not improved significantly over the past 10 years. While there have been tremendous strides and gains in the areas of Financial Reporting and Transparency, Independent External Audits, Restructuring of Long-Term Debt and creating General Fund Reserves.  1. Revenue vs. Expense Imbalance. Two thirds (2/3) of the City’s revenue come from three (3) revenue sources: Property tax, Sales tax, and Utility tax. Since 2020, while property and sales taxes have risen modestly, the decline in utility taxes has eliminated this gain. Meanwhile, expenses have risen approximately 20% over that same period. In recent years, there have been national and regional economic factors that have created a flat (limited) revenue growth, while expenditures have continued to increase, which is a formula that creates lack of fiscally sustainability for local government budgets. If there were any national recession or regional economic decline that would significantly impact the city’s fiscal solvency. A table below illustrates the problem: 1  AGENDA ITEM 2 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 Actual Actual Actual Unaudite d Proje cte d Property Tax 5,076,628 5,282,719 5,338,704 5,546,229 5,519,843 Sales Tax 2,639,765 3,185,706 3,862,511 3,785,474 3,805,590 Utility Tax 2,915,647 3,100,663 3,548,686 4,061,071 3,663,152 Total 10,632,040 11,569,088 12,749,901 13,392,774 12,988,585 71% 73% 74% 72% 75% Other Rev. 4,344,196 4,308,388 4,389,919 5,137,787 4,427,960 Total Revenue* 14,976,236 15,877,476 17,139,820 18,530,561 17,416,545 Expenses (16,858,054) (15,270,033) (16,899,074) (17,985,186) (17,686,144) Diff Rev/Exp (1,881,818) 607,443 240,746 545,375 (269,599) *Excluding Trans fers In Note s : 1) FY21/22 and FY22/23 Surplus was a result of vacant positions. 2) Expenses: Springbrook Upgrade $281,000 Info. Tech./Ent. Mgmt $500,000 Website Redesign $140,000 Vehicle Replacement $200,000 Building Improvements $500,000 Sub Total $1,621,000 3) Reductions (FY23/24) Programs $255,602 Part Time Positions $197,470 City Wide Reduction $44,872 Sub Total $497,944 Total $2,118,944 2. Unavoidable Expenses. The city has faced significant staff turnover at all levels of the organization, including various key executive management positions. This high rate of turnover is due largely in part to the City’s inability to competitively match the salaries of surrounding cities. (Approximately 70 % of the City’s general fund revenue goes to maintain the City’s Police department and Community Services Department.) In addition, the General Fund pays for public facilities, and planning, finance, human resources, records management and other functions of the City. 3. Unfunded Retirement Obligations to Employees. The City is fortunate that in 1944 the voters approved an override property tax (the “Override”) to fund retirement of City employees. There are only a handful of cities which have such a tax. The tax is projected to generate approximately $4.25M in FY 2024. However, due to cyclical losses suffered by the State’s pension fund (“CalPERS”), including various actions by CalPERS to reduce projected interest earnings and require greater contribution by member agencies, the City of Bell, along with most other public agencies, is facing increasing demand from CalPERS. Current projections are that the City’s pension obligation in fiscal year 2024 will be $4.7M, which is greater than the projected revenue of $4.25 million. These cost increases in the City’s Pension costs represent a 27% increase over the last four (4) years. B. Additional Sales Tax Revenue Considering the foregoing fiscal concerns discussed during the FY 2023-2024 Budget process and the future concerns of the City’s fiscal instability and lack of financial sustainability, staff is recommending the City Council consider the submission of a transactions and use tax (commonly known as a “sales tax”) to the City’s voters. 2  AGENDA ITEM 2 California law effectively “caps” the City’s sales tax at a maximum rate of 10.25%. Prior to November 2019, the total sales tax rate for the City of Bell was 8.75%; the lowest among its neighboring cities. This 8.75% includes taxes such as the City’s traditional 1% sales tax under Chapter 3.20 of the Bell Municipal Code, but also includes County sales taxes and State sales taxes (discussed further below). The following table shows sales taxes for other cities: City Sales Tax South Gate 10.25% Commerce 10% Pico Rivera 10.25% Cudahy 10.25% Downey 10% Compton 10.25% Bell 9.50% In November 2018, voters approved two County sales taxes: Measure M (Los Angeles County Traffic Improvement Plan) and Measure HHH (Los Angeles County Homeless Services Tax). These two measures increased the City of Bell’s sales tax rate to 9.50% without providing any additional revenue to the City of Bell. Thus, the current sales tax rate of 9.50% leaves only 0.75% remaining available to the City of Bell to increase its sales tax revenue from sales generated within the City’s boundaries. The State share of sales tax is almost four times the City’s 1% share. The County also receives 1% in unincorporated territory, but the County has other entities relating to public safety, transportation, traffic improvement, mental health and other functions which total another 4.5%. The authority of the City to impose the additional 0.75% transactions and use taxes (commonly referred to as a “sales tax”) under any provision of law is subject to the rate limitation specified in Rev. & Tax Code Section 7251.1. It should be noted that other public entities can also take advantage of the additional 0.75% (e.g., other initiatives similar to Measure M and Measure HHH). A number of other entities are considering increases to make use of these funds. This is not a matter of whether the citizens of Bell are going to pay higher sales taxes, it is whether those sales tax revenues stay in the City of Bell for local programs and services or if those sales tax revenues go to other eligible entities. DISCUSSION: C. Proposed Sales Tax Ordinance The City’s traditional 1% sales tax is found in Chapter 3.20 of the Bell Municipal Code. The Charter in Section 1107 allows the City to raise taxes in accordance with State law. This new sales tax ordinance adds Chapter 3.22 to Title 3 of the Bell Municipal Code. This accomplishes two things. 3  AGENDA ITEM 2 It adds provisions to the Bell Municipal Code in relation to the administration of the sales tax. Further, and more importantly, it establishes an additional sales tax at a rate of three-quarter cent per dollar (0.75%). This measure must be approved by a majority of voters in the City to take effect. D. Procedures A two-thirds (i.e., 4 Councilmembers) vote of all members of the City Council (Gov. Code Section 53724(b); Rev. & Taxation Code Section 7285.9) will be required to pass the resolution to order the submission of the proposed sales tax ordinance to the voters. Revenue & Taxation Code Section 7285.9 also requires that the City Council approve the sales tax ordinance. The ordinance will allow the Council to adopt the rate by resolution if the measure passes. The ordinance adopted by the voters may provide authority to impose the full .75 increase or leave it open to the Council to subsequently set the amount. If the Council elects less than the .75 increase, the difference may be taken by other government entities. Passage of the sales tax measure will require approval by a majority of the voters. (The proposed taxes will generate revenue, deposited in the general fund, available for any general governmental purpose. Thus, the taxes are considered “general taxes.” Under Proposition 218, the levy of a new general tax must be approved by a majority of voters. (Cal. Const. art. 13C, § 2(b).).) Such a measure, if presented at a general election at which Councilmembers are up only requires a majority vote, but if presented at a special selection requires a 2/3 vote. As previously discussed, the City’s current Sales Tax is a General Fund revenue that is not restricted to any special purpose, and the same would be true of this additional sales tax. The City’s largest General Fund expenses are in the Bell Police Department and Community Services Department (Youth and Seniors Programs and Services). E. State Administration Staff previously researched and identified that the State has a different regulatory scheme for a new sales tax measure than the traditional and will charge significant fees for the administration up to $175,000. City staff is in the processing of determining if the State has created a specific schedule at this point; however, city staff previous research indicates that an increase of the tax in .25% increments, the State may adjust their administrative expense fees based on the Sales Tax increase. FISCAL IMPACT: The 2023-2024 Budget estimates that the sales and use tax (pursuant to Chapter 3.20 of Title 3 of the Bell Municipal Code) will generate $3.8 million for the year. A 0.75% increase would generate approximately $1.5 million per year into the City’s General Fund. ATTACHMENTS: 1. INTRODUCE AND CONDUCT THE FIRST READING, BY TITLE ONLY, OF AN “ORDINANCE OF THE PEOPLE OF THE CITY OF BELL ADDING CHAPTER 3.22 TO TITLE 3 OF THE BELL MUNICIPAL CODE, RELATING TO THE ESTABLISHMENT OF A NEW ADDITIONAL GENERAL TRANSACTIONS AND USE TAX” 4  ORDINANCE NO. XXXX AN ORDINANCE OF THE PEOPLE OF THE CITY OF BELL ADDING CHAPTER 3.22 TO TITLE 3 OF THE BELL MUNICIPAL CODE, RELATING TO THE ESTABLISHMENT OF A NEW THREE QUARTER CENT PER DOLLAR (0.75%) GENERAL TRANSACTIONS AND USE TAX WHEREAS, Article XIIIC, Section 2, of the California Constitution provides that any general tax must be submitted to the electorate and approved by a majority vote of the electorate and the Bell Charter in Section 1107 permits the City to impose any tax permitted by State law; and WHEREAS, Article XIIIC, Section 2, of the California Constitution requires that general taxes must be submitted at a general municipal election unless an emergency is declared as the term “emergency” is used in Article XIIIC, Section 2(b) of the California Constitution; and WHEREAS, on November 8, 2023 and November 14, 2023, the City Council of the City of Bell voted to submit a measure to the voters of the City of Bell at the General Municipal Election on March 5, 2024, for the increase of the City’s sales tax by three quarter cent per dollar (0.75%) (the “Measure”); and WHEREAS, the City Council of the City of Bell is authorized and directed by Revenue & Tax Code Section 7285.1 to submit to the voters this Measure, and the City Council therefore wishes to have the voters consider the same at a General Municipal Election to be held on March 5, 2024; and WHEREAS, if the Measure is approved by the voters, by a majority vote this Ordinance would establish a general tax to be deposited in the City of Bell’s General Fund for any lawful public purpose and the measures to implement and administers such tax; and WHEREAS, the City Council authorizes the City Manager and City Attorney to make any changes to this ordinance, in accordance with the recommendations from the CDTFA; and WHEREAS, this Ordinance, if authorized by the voters, may be adopted and amended from time to time by the City Council in accordance with the terms hereof. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BELL HEREBY ORDAINS AS FOLLOWS: Section 1. Chapter 3.22 is hereby added to Title 3 of the Bell Municipal Code as follows: “Chapter 3.22 - Transactions and Use Tax 3.22.010. TITLE. This ordinance shall be known as the “City of Bell Transactions and Use Tax” Ordinance. This ordinance shall be applicable in the incorporated territory of the City. 3.22.020. GENERALLY; OPERATIVE DATE. Ordinance No. XXXX First Reading, November 14, 2023 Second Reading, Page 1 01135.0001/616262.3  A. This Chapter establishes a transactions and use tax in addition to that set forth in Chapter 3.20, in accordance with the specific authority under State law. The tax rate limit is established by the voters, but in all other respects this ordinance is established and may be amended from time to time by the City Council. B. This Chapter, however, only becomes effective when the voters have approved a tax rate hereunder. Accordingly, the "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of the tax rate Measure, the date of such adoption being as set forth below. 3.22.030. PURPOSE. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transaction and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 3.22.040. CONTRACT WITH STATE. Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the Ordinance No. XXXX First Reading, November 14, 2023 Second Reading, Page 2 01135.0001/616262.3  operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.22.050. TRANSACTIONS TAX RATE. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of up to three quarters of a cent per dollar (0.75%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. If this rate of tax is approved by the voters, the City Council may by resolution set the rate of tax at such amount it deems appropriate not exceeding the rate of tax established herein. 3.22.060. PLACE OF SALE. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration. 3.22.070. USE TAX RATE. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of up to three quarters of a cent per dollar (0.75%) of the sales price of the property. If this rate of tax is approved by the voters, the City Council may by resolution set the rate of tax at such amount it deems appropriate not exceeding the rate of tax established herein. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 3.22.080. ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 3.22.090. LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when: Ordinance No. XXXX First Reading, November 14, 2023 Second Reading, Page 3 01135.0001/616262.3  1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder. 3.22.100. PERMIT NOT REQUIRED. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 3.22.110. EXEMPTIONS AND EXCLUSIONS. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. Ordinance No. XXXX First Reading, November 14, 2023 Second Reading, Page 4 01135.0001/616262.3  B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. Ordinance No. XXXX First Reading, November 14, 2023 Second Reading, Page 5 01135.0001/616262.3  2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.22.120. AMENDMENTS. Ordinance No. XXXX First Reading, November 14, 2023 Second Reading, Page 6 01135.0001/616262.3  A. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. B. Consistent with Section 3.22.080 interpreting the provisions of State law and Subsection A of this Section providing for automatic amendment, the City Council retains full authority to modify and amend all administrative provisions of this Ordinance, except as to Sections 3.22.50 and 3.22.070 setting the rate of tax, without a vote of the people. 3.22.130. ENJOINING COLLECTION FORBIDDEN. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.22.140. ABILITY TO LOWER RATE. The tax rate in this Chapter may only be increased by a vote of the people of the City of Bell; provided, however, that the City Council may amend this Chapter to reduce the amount of the tax authorized herein or to otherwise implement or advance the purpose and intent of this Chapter. 3.22.150 ANNUAL AUDIT. The proceeds resulting from the Transactions and Use Tax established in this Chapter shall be deposited into the City's General Fund and become subject to the same independent annual audit requirements as other General Fund revenues. 3.22.160 PENALTIES. Without limiting any remedies available at law or equity, any person violating any of the provisions of this Chapter shall be deemed guilty of a misdemeanor. 3.22.170 CHANGES IN LAW; COUNTY TAX LIMITS. All amendments subsequent to the effective date of this Chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this Chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Chapter. In the event that Los Angeles County voters approve a future measure after the effective date of this Chapter or otherwise enacts a new transactions and use tax that, when aggregated with the City's transactions and use taxes under this Chapter, causes the combined rate limit set forth in Revenue and Taxation Code Section 7152.1 to be exceeded, such future County measure shall not have any effect on the City's ability to levy and collect transactions and use taxes at the rates Ordinance No. XXXX First Reading, November 14, 2023 Second Reading, Page 7 01135.0001/616262.3  set forth herein. Unless State law is amended to increase the combined rate limit under Revenue and Taxation Code section 7251.1 or this ordinance is later repealed or amended to reduce its tax rates, Los Angeles County shall not levy nor collect any transactions and use taxes within the territory of Bell which were approved by Los Angeles County voters after the effective date of this Chapter. 3.22.180. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. 3.22.190. EFFECTIVE DATE. This Chapter levying the tax described herein shall be effective ten (10) days after the date on which the City Council has declared that the voters of the City of Bell have approved the ordinance by a vote of no less than a majority of the votes cast by the electors voting on the tax measure set forth in this Chapter at that general municipal election to be held on Tuesday, March 3, 2020. 3.22.200. TERMINATION DATE. The authority to levy the tax imposed by this ordinance shall not expire unless terminated by lawful vote of the electorate or as required or authorized by law.” Section 3. CEQA Exemption. The adoption of this ordinance is not a "project" subject to the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section §§ 21000 et seq.). CEQA Guideline 15378(b)(4) provides that the creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to a specific project that may result in a potentially significant physical impact on the environment are not projects subject to the requirements of CEQA. Section 4. Severability. If any section, subsection, sentence, clause or phrase of this ordinance or the application thereof to any person or circumstance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The People of the City of Bell hereby declared that they would have passed each subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more subsection, subdivision, paragraph, sentence, clause, or phrase be declared unconstitutional. Section 5. Appropriations Limit. Pursuant to Article XIIIB of the California Constitution, the appropriations limit for the City of Bell is increased to the maximum extent over the maximum period of time allowed under the law consistent with the revenues generated by this tax. Section 6. Passage and Execution. After adoption of this Ordinance, the Mayor shall sign this Ordinance and the City Clerk shall attest and certify to the approval thereof and cause same to be published at least once in a weekly newspaper of general circulation, published in the City of Bell, which newspaper is hereby designated for that purpose (GC § 40806). This Ordinance shall only be in effect following the approval of the Sales Tax Measure by a majority of the voters at an election on March 5, 2024, as certified by the election official. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Bell, California this 14 th day of November 2023. Ordinance No. XXXX First Reading, November 14, 2023 Second Reading, Page 8 01135.0001/616262.3  CITY OF BELL _____________________________ Fidencio J. Gallardo, Mayor ATTEST: _____________________________ Angela Bustamante, City Clerk APPROVED AS TO FORM __________________________________ David J. Aleshire, City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Angela Bustamante, City Clerk of the City of Bell, do hereby certify that Ordinance No. XXXX was duly introduced at a regular meeting of the City Council of the City of Bell, held on the November 8, 2023 at a special meeting of the City Council and on November 14, 2023 at a Special City Council meeting this ordinance was duly introduced and a first reading conducted by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ordinance No. XXXX First Reading, November 14, 2023 Second Reading, Page 9 01135.0001/616262.3  AGENDA ITEM 3 City of Bell Agenda Report DATE: November 14, 2023 TO: Mayor and Members of the City Council FROM: Carlos Islas, Police Chief APPROVED Michael L. Antwine II (e-signature) BY: ________________________________________ Michael L. Antwine II, City Manager SUBJECT: Authorize the Police Chief to accept and administer the Office of Traffic Safety (OTS), Selective Traffic Enforcement Program (STEP) Grant to reduce the number of traffic fatalities and injuries. RECOMMENDATION: It is recommended that the City Council read by title only, waive further reading and adopt Resolution No. 2023-85 titled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL AUTHORIZING AN INTER-FUND ADANCEMENT, IN THE AMOUNT OF $90,000 FROM THE GENERAL FUND UNRESTRICTED FUND BALANCE TO THE POLICE DEPARTMENT’S OFFICE OF TRAFFIC SAFETY FUND ACCOUNT FOR THE PURPOSE OF PROVIDING OVERTIME TO REDUCE TRAFFIC COLLISIONS YEAR 2023-2024 BUDGET AMENDMENT DISCUSSION: The City has seen a rise in traffic collision injuries over the past few years attributed to three specific collision factors of, Driving Under the Influence (DUI), Distracted Driving (Cell Phone Use while driving), and Unsafe speed. Over the last few years, these collision factors have been the cause of many traffic collision injuries and fatalities within the City. This grant will provide $90,000 in funding to target these primary specific driver collision factors to help reduce the number of collisions and related injuries within the City. The fund will also provide some funding for equipment to support traffic related enforcement operations. The traffic enforcement through a combination of high visibility enforcement, education and targeted enforcement of common vehicle code violations will help reduce the number of serious traffic injuries and fatalities. The Department will use “best practice” strategies of DUI Checkpoints, DUI saturation patrols, and concentrated traffic enforcement at problem locations. The focus will include Driving Under the Influence (DUI), Impaired Driving, Distracted Driving, and Unsafe speed violations. Page 1  AGENDA ITEM 3 In addition, traffic safety educational presentations will be made at neighborhood watch meetings and school parent meetings. There will also be additional traffic related training provided to Bell Police Officers. If approved, it is further requested that the City Council authorize an inter-fund advancement, in the amount of $90,000.00 from the general fund to the police department’s 20239/2024 OTS fund account for the purpose of providing overtime and training funding, pending the quarterly reimbursement by the OTS grant as the goals of the grant are met. The grant will reimburse the City’s General Fund at the end of the project. FISCAL IMPACT: There is no additional fiscal impact to the City’s General Fund. The grant will reimburse the City’s General Fund with $90,000 in funding for police overtime to conduct traffic safety education and enforcement operations. ATTACHMENTS 1. Resolution 2023-85 Page 2  RESOLUTION NO. 2023-85 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL AUTHORIZING AN INTER-FUND ADANCEMENT, IN THE AMOUNT OF $90,000 FROM THE GENERAL FUND UNRESTRICTED FUND BALANCE TO THE POLICE DEPARTMENT’S OFFICE OF TRAFFIC SAFETY FUND ACCOUNT FOR THE PURPOSE OF PROVIDING OVERTIME TO REDUCE TRAFFIC COLLISIONS YEAR 2023-2024 BUDGET AMENDMENT WHEREAS, on November 14, 2023, the Bell City Council approved the acceptance of the Office of Traffic Safety (OTS) Grant in the amount of $90,000; and WHEREAS, the OTS Grant will fund overtime for officers to conduct DUI checkpoints, saturation patrols and enforcement of other Primary Collision Factors aimed at reducing traffic collisions and injuries; and WHEREAS, a 2023-2024 budget amendment would be authorized to establish one additional account in the OTS fund 810-80-80-XXXX-000-XXXX in the Police Department’s budget; and WHEREAS, the funds from OTS Grant will reimburse the City's General Fund after every quarter as the goals of the grant are met and reported to the OTS. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BELL DOES HEREBY: SECTION 1. Approve the transfer of General Fund Unrestricted Fund Balance to the Police Department’s Office of Traffic Safety fund to pay for overtime traffic enforcement. SECTION 2. Budget Amendment. The City Council hereby approves amending the Fiscal Year 2023-2024 budget by appropriating an amount of $90,000 from the General Fund Unrestricted Fund Balance to the Police Department’s Office of Traffic Safety fund 810-80-80- XXXX-000-XXXX. PASSED, APPROVED AND ADOPTED this 14th day of November 2023. Fidencio J. Gallardo, Mayor APPROVED AS TO FORM David Aleshire, City Attorney Resolution No. 2023-85 Page 1  CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Angela Bustamante, City of the City of Bell, hereby attest to and certify that the foregoing resolution is the original resolution adopted by the Bell City Council at a special meeting held on the 14th day of November 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Angela Bustamante, City Clerk Resolution No. 2023-85 Page 2  AGENDA ITEM 4 City of Bell Agenda Report DATE: November 14, 2023 TO: Mayor and Members of the City Council FROM: Michael L. Antwine II, City Manager John Oskoui, Interim Public Works Director APPROVED Michael L. Antwine II (e-signature) BY: ________________________________________ Michael L. Antwine II, City Manager SUBJECT: Approve the City of Bell Vehicle Replacement and Maintenance Program, Authorize the City Manager to Execute a Master Equity Agreement and Vehicle Maintenance Agreement between the City of Bell and Enterprise Fleet Management Inc., Issuance of a Purchase Order to Enterprise in the amount of $400,000 and Issuance of Purchase Order to Folsom Ford in the amount of $128,866.98. RECOMMENDATION: It is recommended that the City Council: 1. Approve the Vehicle Replacement and Maintenance Program for the City of Bell. 2. Authorize the City Manager to execute a Master Equity Agreement and Vehicle Maintenance Agreement between the City of Bell and Enterprise Fleet Management Inc. 3. Authorize the designated surplus vehicles and authorize the Director of Finance to liquidate the designated surplus vehicles. 4. Authorize issuance of a purchase order not to exceed $400,000 to Enterprise Fleet Maintenance inc. 5. Authorize the Purchase of two (2) Ford Interceptors and issuance of a Purchase Order to Folson Ford in the amount of $128,866.98. BACKGROUND: The City of Bell’s fleet includes vehicles assigned to various city departments that range from regular sedans to specialty heavy duty trucks. The City’s fleet has aged significantly over the years with some exception to the Bell Police Department vehicles, which have been replaced. Staff estimates the annual cost of maintaining the City’s aging fleet can exceed the value of some the vehicles in the fleet. The average age of the City’s fleet is 8 years, with the oldest vehicles in the fleet between 15-18 years old. Some vehicles have over 120,000 miles, which drastically reduces the resale value of the vehicle. Additionally, the city spends approximately $80,000 annually on fleet maintenance for normal wear tear and replacement costs. The fleet maintenance costs limit the City’s ability to adequately fund a reasonable Equipment Replacement Program. This is not a fiscally sustainable mode of fleet maintenance operation nor replacement. As part of the FY 2022-2023 Budget process, the  AGENDA ITEM 4 Council created a Vehicle Replacement Fund, for which the City will allocate funds to during the annual budget process. Over the past several months ago, staff researched various options to improve the current condition of the City’s fleet through implementing a viable "Vehicle Replacement and Maintenance Program". Staff's research and analysis concludes that fully funding a maintenance program as well as supporting a structured and methodical vehicle replacement program could be best achieved through a Leasing Model versus Purchase Model and creating a maintenance program. Staff research indicates that there is a trend for cities and other governmental agencies to move towards a vehicle lease and maintenance program instead of a traditional ownership model for fleet. Government agencies are experiencing budget savings in maintenance costs and salaries for staff responsible for performing fleet maintenance services on city-owned vehicles. DISCUSSION: The Government Fleet Leasing and Maintenance industry has grown significantly over the past years and Enterprise Fleet Management Inc. has been a trusted partner in successful planning and implementation of these types of programs for numerous Government agencies. For example, Enterprise Fleet Management Inc. has partnered with the cities of Corona, Westminster, San Marcos, Downey and Gardena to successfully implement these programs with tangible positive results for those agencies. To evaluate feasibility of implementing a similar program in the City of Bell, over the course of the last three (3) months, staff has met with representatives of Enterprise Fleet Management Inc. to put together a viable, efficient and suitable plan of action. Based on current condition of the City’ fleet and the number of vehicles in need of replacement and the opportunity to liquidates some of the vehicles with less mileage to realize higher resale values, it appears that a four (4) year cycle vehicle replacement program would be the best operating model for the City. Details of this program will be finalized in the next few weeks. Certain parameters of the program will include: 1. Establishment of a list of the vehicles earmarked for replacement. 2. Identifying the required specifications and types of replacement vehicles. 3. Reducing net operating costs through leasing new vehicles would significantly reduce maintenance expenses and the cost of fuel. This City’s Fleet Program could be ad through an "open-ended" lease structure which would allow the city to replace more vehicles with less upfront capital. Below are highlights of this program:  No mileage restrictions, no abnormal wear and tear, and no early termination penalties.  The City has all rights of ownership and can equip some of the vehicles with aftermarket parts (utility bodies, toolboxes, etc.).  Leasing would provide the opportunity to minimize the amount of large capital outlays necessary for purchasing vehicles.  The City would establish a proactive fleet replacement plan to acquire vehicles on a more consistent basis.  AGENDA ITEM 4 The City’s Fleet Replacement and Maintenance Program includes replacement of City vehicles with Enterprise over the course of the next four (4) years. The various identified city vehicles will be replaced according to the following schedule based on costs, Enterprise recommendation and the City Manager direction: Year 1 (2024): vehicles replacement costs approximately (leasing and maintenance) $400,000. Year 2 (2025): vehicles replacement costs approximately (leasing and maintenance) $200,000. Year 3 (2026): vehicles replacement costs approximately (leasing and maintenance) $150,000. Year 4 (2027): vehicles will be replaced. Cost (leasing and maintenance) will be determined during the annual budget process. With regards to the City's fleet maintenance needs, it is proposed that the new leased vehicles be maintained through a maintenance program offered by Enterprise Fleet Management, Inc. During the term of the Agreement, Enterprise would pay for, or reimburse the City for its payment of all costs and expenses incurred in connection with the maintenance or repair of the covered vehicle. Expenses, such as fuel costs, oil and fluid changes between designated (factory recommended) service intervals, tire repair and replacement, washing and cost of repair because of lack of maintenance by the city between scheduled services would not be covered as part of the Agreement. Therefore, during the first year, of the vehicles designated for replacement would be maintained through the Agreement with Enterprise. The balance of the vehicles would be handled by the city directly. In the subsequent years of the program, as the vehicles are replaced through the vehicle leasing mechanism, those vehicles would be included in the Maintenance Agreement with Enterprise. All necessary leased vehicle service and repairs would be completed by a participating and authorized (by Enterprise) repair and service centers in the City of Bell or nearby city. The Enterprise Fleet Maintenance Program includes a fully automated record keeping tool by supplying a robust client website which provides visibility and tracking of vehicle data, customized dashboards with easy reporting, real-time alerts, self-service features including driver changes, vehicles descriptors, mileage information and more. Implementation of the program will provide Finance and Public Works staff with more accurate costs budgeting and fleet maintenance during the annual budgeting process. Replacing the aged fleet will have a positive impact on fuel expenses. With new standards and technology increasing the MPGs of newer vehicles, the city can increase the miles per gallon of its fleet. Enterprise will provide a local Account Team to assist the city with implementing and executing the Vehicle Leasing and Replacement program at no additional cost to the city. The following is a list of services provided by Enterprise Fleet Management Inc.  Make recommendations on the most cost-effective vehicles in each class  Review the best time to order or sell vehicles  Monitor the fleet to ensure efficiency with maintenance and fuel  Compile analysis on the best alternative fuel vehicles  Review mileage patterns and fuel miles per gallon  Establish a proactive replacement plan  AGENDA ITEM 4 As the City replaces vehicles under this program, the old vehicles will be set aside as surplus vehicles and equipment and sold through a government auction process. All proceeds from the sale of the surplus vehicles will be deposited into the city’s vehicle replacement fund to provide additional funding for the program. An agreement with Enterprise Fleet Maintenance Inc., can be executed without going through the traditional bidding process by piggybacking off the existing Fleet Leasing and Management Services contract on The Interlocal Purchasing System (TIPS). TIPS is a national cooperative purchasing program whose membership include government and other entities in various states, including California. This cooperative purchasing system enables member entities to purchase on an "as -needed" basis from competitively awarded contracts with high performance vendors. The city can enter into an agreement with Enterprise pursuant to the TIPS RFP. Staff respectfully recommends that the City Council approve the implementation of the City's Vehicle Leasing and Replacement Program, authorize the City Manager to execute the Master Equity Lease and Vehicle Maintenance Agreements and any necessary documents with Enterprise Fleet Maintenance Inc., and authorize the issuance of a purchase order in the amount of $400,000 to Enterprise Fleet Maintenance Inc. It is further recommended that the City Council authorize the purchase of two (2) police interceptor vehicles from Folsom Ford and issue a purchase order in the amount of $128,866.98. Which will be part of the City’s Vehicle Replacement program; however, these two (2) vehicles are not under the Enterprise Fleet Lease program. It Is further recommended that the city council approve the attached list of designated surplus vehicles and authorize the Director of Finance to liquidate these vehicles. FISCAL IMPACT: There is no impact to the City’s General Fund over the first three (3) years of the program. Thereafter, the City must annually budget revenues to the Vehicle Replacement Fund to continue implementation of the program. The first three (3) years of the program will be paid with the City’s ARPA fund allocation in the amount of $600,000 and $150,000 from the General Fund - Vehicle Replacement Fund. ATTACHMENTS: 1. Enterprise Credit Application 2. Enterprise Master Equity Lease Agreement 3. Enterprise Maintenance Agreement 4. Enterprise Full Maintenance Agreement 5. Enterprise Maintenance Management Vehicle Service Agreement 6. Enterprise Consignment Auction Agreement 7. Enterprise Presentation to City of Bell 8. City of Bell – Vehicle Replacement Program Schedule