City Council

21. SECOND READING OF AN ORDINANCE PROVIDING FOR A GENERAL MUNICIPAL ELECTION IN SAID CITY TO BE HELD ON NOVEMBER 3, 2026, PROVIDING FOR THE CONSOLIDATION OF THE GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION; SAID ELECTION BEING HELD FOR A BALLOT MEASURE TO AMEND ALHAMBRA MUNICIPAL CODE CHAPTER 5.70 (“TRANSIENT OCCUPANCY TAX”) – F2M26-33, O2M26-4865 Alhambra provides a variety of essential municipal services, including Fire, Police, Emergency 911, youth and senior services, library, parks, public works and utilities. In recent years, the City’s ability to maintain these services has become more difficult with service costs increasing including costs from impacts to infrastructure and public safety from short-term vacation rentals in residential neighborhoods. Short-term vacation rentals impact local services and infrastructure just as traditional hotels; however, short-term rentals currently in Alhambra are not paying the same transient occupancy tax imposed on traditional hotels. For the 2026-27 Fiscal Year Budget, the City’s finances showed a net zero unassigned General Fund Balance, meaning there are no additional or surplus funds available to address a host of priorities including facility upgrades, reserve contributions, capital and equipment repair and replacement, and unfunded liability. The City must identify and secure funding streams, if adopted by Alhambra voters, which Alhambra aims to preserve Alhambra’s quality of life, including well-maintained streets, quality of local parks, safe and clean neighborhoods, and rapid 911 response. A local Transient Occupancy Tax (TOT) for short-term vacation rentals for stays up to 30 days at the same rate (12% of the rent charged by an operator of a hotel or motel) as specified under the City’s existing TOT under the Alhambra Municipal Code Chapter 5.70 would help support the services the Alhambra community have designated as important at levels consistent with the community’s priorities. Calling the election requires adoption of an ordinance. The proposed ordinance does the following: Sets forth City Council approval of a TOT of 12% for short-term vacation rentals for stays up to 30 days, subject to Alhambra voter approval; Calls a general municipal election on November 3, 2026, for the purpose of submitting the Ballot Measure for consideration of the qualified electors of the City, modernizing the definitions of “transients” and “hotel” in the TOT Ordinance, while not changing the TOT rate of 12%, and that ballot measure will be presented as an amendment to a general tax imposed for general governmental purposes, with revenue from the tax to be placed in the City’s general fund to pay for any general governmental purpose; Directs the City Attorney to prepare the measure summary per Elections Code 9280; and, Sets out time frames and deadlines for submittal of ballot arguments and rebuttals. Recommended Action: City Council, by one motion, take the following actions: 1. Find that the proposed action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080(b)(8), and California Code of Regulations Section 15378(b)(5) because it relates to organizational or administrative activities of the City, it leads to the establishment of funding City services within existing service areas, and will not result in direct or indirect physical changes to the environment. 2. Adopt the following ordinance entitled: Ordinance No. O2M26-4865: An Ordinance of the Alhambra City Council providing for a General Municipal Election in said City to be held on November 3, 2026, providing for the consolidation of the General Municipal Election with the Statewide General Election; said election being held for a Ballot Measure, to amend Alhambra Municipal Code Chapter 5.70 (“Transient Occupancy Tax”) to include short term rentals at the same rate as other hotels 3. Adopt the following resolution entitled: Resolution no. R2M26-20: a Resolution of the Alhambra City Council requesting the Board of Supervisors of the County of Los Angeles to order the consolidation of an Alhambra General Municipal Election to be held on November 3, 2026 with the Statewide General Election to be held in Los Angeles County the same day, to authorize the Board of Supervisors of the County of Los Angeles to canvass the returns of said General Municipal Election and to request that the Registrar of Voters of said conduct of said general municipal election pursuant to elections code section 10403