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RPVCCA_SR_2010_01_19_05_Claim_against_CountyCITY OF MEMORANDUM Rt\NCHO PALOS VERDES TO: FROM: DATE: SUBJECT: REVIEWED: HONORABLE MAYOR &CITY COUNCIL MEMBERS CAROL LYNCH,CITY ATTORNEY JANUARY 19,2010 CLAIM AGAINST THE COUNTY REGARDING THE COST OF CONDUCTING THE ELECTION ON BALLOT MEASURE TOT CAROLYN LEHR,CITY MANAGER c£L- RECOMMENDATION Receive and file this report. BACKGROUND At the recent election,the County of Los Angeles did not send out all of the Official Sample Ballot and Voters Instructions ("Sample Ballots")with the accompanying election information (City Attorney's impartial analysis,ballot arguments,and candidates'statements)prior to or at the same time that the absentee ballots were sent out to the absentee voters,as required by the Elections Code. Due to the small number of votes by which Measure TOT was defeated (49 votes),then-Mayor Clark was concerned that the County's failure to comply with the Elections Code affected the outcome of Measure TOT,which would have increased the City's Transient Occupancy Tax from 10%to 12%. In response to the concern that was raised by then-Mayor Clark,at the City Council meeting that was held on November 17,2009,the City Council directed the City Clerk to send a letter to the County Clerk's office requesting a refund or credit of the cost to the City of having the County conduct the election on Measure TOT,which has been estimated to be approximately $20,400.On November 24,2009,the City Clerk sent the attached letter to the County Clerk's Office requesting a refund of that amount. On December 15,2009,the County Clerk's Office sent a responsive letter to the City Clerk.In that letter,the County apologizes for the delayed mailing but states that it is refusing to refund the money to the City on the grounds that:"Elections Code Section 10002 requires the City to fully reimburse the County for services performed by the Registrar at the City's request."In addition,the County points out that the City Council adopted a resolution requesting the County 5-1 Claim Against the County -Measure TOT January 19,2010 Page 2 of2 to conduct the election on behalf of the City and in that resolution,the City agreed to pay the costs of doing so.(A copy of City Council Resolution No.2009-43 is attached.) The letter from the County also notes that the County's failure to mail some of the sample ballots timely did not prevent voters from casting their ballots,and that the information that was not mailed timely was available on line to the voters. DISCUSSION The last paragraph of Elections Code Section 10002 states,in pertinent part: "Unless other arrangements satisfactory to the county have been made, the city or district shall reimburse the county in full for the services performed upon presentation of a bill to the city or district." Given the language of the Elections Code quoted above,the County could agree to refund or credit to the City all or part of the cost of conducting the election on Measure TOT.However, as noted by the County,the resolution that was adopted by the City Council did state that the City would pay the County in full for the services performed in connection with the election. If the City Council wants the City Clerk and the City Attorney to pursue this matter further,the next step would be for the City to file a claim with the County.Given the County's response to date,in all likelihood,the City's claim would be denied.The next step after that would be for the City to file a lawsuit against the County. Staff is seeking direction from the City Council whether to file a claim with the County that requests a credit for the amount of $20,400,which is the difference between the original estimate from the County of $76,000 to conduct an election without a measure on the ballot, and the subsequent estimate from the County of $96,400,which included the additional cost of having Measure TOT included on the ballot.(Staff anticipates receiving the County's final invoice for the cost of conducting the election by the end of February or early March.)The cost of filing a claim with the County and subsequent litigation against the County would far exceed $20,400. CONCLUSION Staff's recommendation is to receive and file this report and take no additional action. Attachments 1)Letter dated November 24,2009 to County Clerk's Office Requesting Refund w/attach. 2)Response Letter dated December 15,2009 from the County Clerk's Office 3)Resolution No.2009-43 1199141-2 5-2 CITYOF November 24,2009 Mr.Dean C.Logan Los Angeles County Registrar-Recorder/County Clerk 12400 E.Imperial Highway Norwalk,CA 90650 Subject:Request for Refund of Costs Associated with the Placing of the City of Rancho Palos Verdes's Measure on the November 3,2009 Ballot Dear Mr.Logan: The City of Rancho Palos Verdes held its General Municipal Election on November 3, 2009,which was consolidated with the School District and Library District elections held on the same date under the direction of the County of Los Angeles.During the weeks preceding the election,the City Clerk's Office became aware of the late mailing of the Official Sample Ballot and Voters Instructions (Sample Ballot)to over 6,000 of its City residents.Pursuant to California Elections Code Section 13303,the Sample Ballot is to be mailed to registered voters during the period of September 24,2009 and October 13, 2009.However,prior to the Election Day it became evident that many of the City's 27,022 registered voters received their Sample Ballots late. I spoke with several County employees over the weeks preceding and immediately after the election regarding this matter.In a conversation with Executive Liaison Officer Efrain Escobedo,he explained that there had been a technical computer glitch,which resulted in the late mailing of the Sample Ballots.These Sample Ballots were mailed out to the voters on October 22 and October 28,2009,well beyond the legal date for mailing (see attached letter dated November 13,2009 from Executive Liaison Officer Escobedo).On November 10,2009,I requested an audit of the mailing dates of the Sample Ballots for the two ballot groups (177 and 178)in the City of Rancho Palos Verdes.The audit revealed that 6,464 ballots were mailed after the legal deadline as part of the Supplemental Mailings. As a result of the late mailing,the City Council believes that thousands of the City's voters did not receive important information concerning the Transient Occupancy Tax Measure,which had been placed on the ballot,prior to the time when they submitted their absentee ballots.In particular,based on the estimated numbers currently available to the City,the many City absentee voters (3,352 voters voted by absentee ballot)did not receive timely the City Attorney's Impartial Analysis,the Argument in Favor of the Measure,and the language of the Proposed Ordinance of Measure TOT. 30940 HAWTHORNE BOULEVARD /RANCHO PALOS VERDES,CA 90275-5391 /(310)544-5217 /FAX (310)544-5291 /WWW.PALOSVERDES.COM/RPV :....:.PRINTED ON RECYCLED PAPER 5-3 ("""" Request for Refund -Costs Associated with Measure November 24,2009 Page 2 of 2 Due to the fact that voters did not have the necessary information in a timely manner in order to make an informed decision regarding the City's Measure,the City Council believes the Transient Occupancy Tax Measure failed,because it only lost by 138 votes. The City Council has directed staff to request an appropriate remedy from the County for the mishandling of the timely mailing of the Sample Ballot in the City's November 3, 2009 General Municipal Election.The City Council has directed that staff request a full refund/credit from the County of Los Angeles for all of the costs associated with the placing of the Measure on the November 3,2009 Ballot,which was estimated at approximately $20,400 by County staff on July 21,2009. We appreciate your prompt review and consideration of this matter.If you have any questions regarding this letter,please feel free to contact me at (310)544-5208,or City Attorney Carol Lynch at (213)626-8484 (extension 331). s~~ Carla Morreale,CMC City Clerk Enclosure:Audit Response Letter dated November 13,2009 cc:Ms.Sachi A.Hamai,Executive Officer,Board of Supervisors Carol Lynch,City Attorney 1189535-1 5-4 COUNTY OF LOS ANGELES REGISTRAR-RECORDER/COUNTY CLERK 12400 Imperial Highway-P.O.Box 1024.Norwalk,California 9Q651-1Q24-www.lavote.net· DEAN C.LOGAN ...,Registrar-Recorder/County Clerk November 13,2009 . Carla Morreale,CMC City Clerk City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes,CA 90275 Dear Clerk Morre~le, This letter is in response to your request that our department review the mailing of Official Sample Ballot Booklets for the November 3,2009 Consolidated EleCtions. Specifically,you requested that we review and provide information about sample ballot mailings to voters in the City of Rancho Palos Verdes,referencing Ballot Groups 177 and 178.'. Official Sample Ballot Mailing Report,November 3.2009 Consolidated Elections BG 177 BG 178 Quantity Mailing Quantity Mailing Date Date Primary Mailing 3,313 10/5/09 16,700 10/6/09 Supplemental #1 812·10/22109 5,365 10/22/09 Supplemental #2 27 10/28/09 260 10/28/09 The table above,lists the quantities and mailing dates for each of the major Offi(fial Sample Ballot mailings issued for the November 3,2009 Consolidated Elections.The "Primary Mailing"is the first and largest mailing.The "Supplemental".mailings usually include only additional requests for missing or replacement booklets.Per our previous conversations,please note that for this election our sample ballot mailing operations experienced some unforeseen technical difficulties which,for a limited amount of Permanent Vote by Mail voters,delayed the mailing.Not~,however,that PV8M voters receive a vote by mail instruction guide with their ballots.The guide includes instructions on how to cast your ballot and all of a sample ballot of all the contests and candidates on the ballot.. .......... :::r 5-5 _~'"",•••··1,•••_~_.._•••_. ""'' ..... ( <,.,.'•••• --......--_/,."'."'..,,"..~._-----.....,;c. I hqpe this information provides you the additional details you requested.Please,if you should have any questions contact me at (562)462-2721.As always,we are committed to working with our partner jurisdictions and aim to provide service excellence.. V\ Efrain .scobedo Executive Liaison Officer 5-6 ," COUt"""'(OF LOS ANGELES /,.."REGnSTRAR-RECORDERlCOU~'ljY CLERK 12400 Imperial Highway-P.O.Box 1024,Norwalk,California 90651-1024-www.lavote.net DEAN .c.LOGAN Registrar-Recorder/County Clerk December 15,2009 Carla Morreale,CMC City Clerk City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes,CA 90275 Dear Ms.Morreale: RECEIVED CITY OF RANCHO PALOS VERDES DEC 17 2009 CITY CLERK'S OFFICE This is in response to your letter dated November 24,2009,in which you seek a full refund/credit from the County for the costs associated with placing the City's Transient Occupancy Tax Measure (TOT)on the ballot. We recognize your concern and apologize for the delayed mailing of a portion of sample ballot booklets to Permanent Vote By Mail (PVBM)Voters;however a resolution seeking the Registrar-Recorder/County Clerk's ("Registrar")services and affirming the City's agreement to pay the costs of conducting the election was approved by the Board of Supervisors on July 21, 2009.Pursuant to that resolution,the City agreed to pay any costs associated,as a condition of the Registrar's provision of election services.Moreover,Elections Code section 10002 requires the City to fully reimburse the County for services performed by the Registrar at the City's request. Our office conducted the election and associated services for the City of Rancho Palos Verdes, which included not only a citywide measure but other municipal offices,in an appropriate manner consistent with California election code.Services not only included the mailing of Official Sample Ballot booklets,but also:mailing and processing of Vote by Mail Ballots;poll worker recruitment and training;polling place recruitment;vote tabulation and official canvass and certification for Rancho Palos Verdes contests on the ballot.These are services for which the County must recover all associated costs. With respect to your specific concern about the late mailing of sample ballot booklets,our November 9,2009 report to your office demonstrated that only 6,177 were mailed after the initial mailings on October 5 and 6.The delayed mailing impacted only PVBM voters,who automatically receive a ballot,vote by mail guide with an abridged sample ballot that included a clear and affirmative notice that a sample ballot would be mailed in a separate mailing,as well as instructions on how to view an electronic sample ballot online. For reference purposes,it is important that we clarify the cause of the partially delayed mailing. The voter file generated and sent to our vendor to prepare the mailing of sample ballot booklets did not initially include PVBM voters.This was discovered on October 13,2009.On October 14,2009 a supplemental file was sent to our mailing house.This file was processed and sample ballots were subsequently mailed to these additional voters on October 22,2009,in 5-7 ....., c····: Carl Morreale,CMC .,. City of Rancho Palos Verdes December 15,2009 Page 2 advance of the November 3,2009 election.While every deliberate effort is made to deliver sample ballot booklets to voters as early as possible,unforeseen circumstances impact delivery dates.This partial delay in mailing sample ballots to PVBM voters in no way obstructed those voters from casting a ballot and,again,the vote by mail packet,which was timely mailed informed the voters that a sample ballot would arrive in a separate mailing and that copies were also accessible online. Based on the above,the County is not in a position to refund/credit the cost of placing the City's Transient Occupancy Tax Measure on the ballot.As is our standard practice,the Department will provide you a detailed invoice of costs associated with the conduct of the City's election. Please contact Efrain Escobedo,Executive Liaison Officer at (562)462-2721 if you have any further questions. Sincerely, D~f:~ Registrar-Recorder/County Clerk Cc:Sachi A.Hamai,Executive Officer,Board of Supervisors Judy Whitehurst,Principal Deputy County Counsel Carol Lynch,City Attorney,Rancho Palos Verdes HOA,661253.1 5-8 RESOLUTION NO.2009-43 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES,CALIFORNIA,REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION OF SAID CITY TO BE HELD ON NOVEMBER 3,2009 WITH THE SCHOOL DISTRICT AND LIBRARY DISTRICT ELECTIONS TO BE HELD ON SAID DATE PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE. WHEREAS,the City Council of the City of Rancho Palos Verdes called a General Municipal Election in said City to be held on November 3,2009,for the purpose of the election of two Members of the City Council of said City;and, WHEREAS,the City Council is submitting to the voters a question relating to increasing the rate of the City's Transient Occupancy Tax;and WHEREAS,it is desirable that the General Municipal Election be consolidated with the School District and Library District elections to be held on the same date and that within said City the precincts,polling places and election officers of the three elections be the same,and that the county election department of the County of Los Angeles canvass the returns of the General Municipal Election and that said School District Election,Library District Election,and General Municipal Election be held in all respects as if there were only one election; NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES RESOLVE,DECLARE,DETERMINE AND ORDER AS FOLLOWS: Section 1:That pursuant to the requirements of Sections 10400 et seq.of the Elections Code,the Board of Supervisors of the County of Los Angeles is hereby requested to consent and agree to the consolidation of a General Municipal Election with the School District and Library District elections on Tuesday,November 3,2009,for the purpose of the election of two Members of the City Council of said City. Section 2:That a measure is to appear on the ballot as follows: Shall an ordinance be adopted to increase the rate of the City's existing YES NO transient occupancy tax from ten ---- percent (10%)to twelve percent (12%)? Section 3:That the county election department is authorized to canvass the returns of said General Municipal Election,which it is hereby requested to consolidate with said School District and Library District Elections,and said election shall be held in all respects as if there were only one election,and only one form of ballot shall be used. Section 4:That the Board of Supervisors is hereby requested to issue instructions to the county election department to take any and all steps necessary for 5-9 the holding of said consolidated election. Section 5:That the City of Rancho Palos Verdes recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs. Section 6:That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the county election department of the County of Los Angeles. Section 7:That the City Clerk of the City of Rancho Palos Verdes shall certify to the passage and adoption of this resolution and enter it into the book of original Resolutions. PASSED,APPROVED AND ADOPTED ON June 30,2009. /s/Larry Clark Mayor Attest: /s/Carla Morreale City Clerk State of California ) County of Los Angeles )ss City of Rancho Palos Verdes) I,Carla Morreale,City Clerk of the City of Rancho Palos Verdes,hereby certify that the above Resolution No.2009-43 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on June 30,2009. City Clerk 1146450 Resolution No.2009-43 Page 2 of 2 5-10