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Item 4BCITY OF SOUTHLAKE MEMORANDUM August 14, 2008 To: Shana Yelverton, City Manager From: Lori Payne, City Secretary Subject: Resolution No. 08-041, Call a special local option election for November 4, 2008 to legalize the sale of beer and wine for off- premise consumption only Action Requested: Approve Resolution No. 08-041 to call a special local option election for November 4, 2008 to legalize the sale of beer and wine for off-premise consumption only. Background Information: Texas Petition Strategies, Inc., who has indicated their clients are HEB Central Market and Kroger, submitted a letter stating there have been many questions why Southlake retailers are not allowed to sell the higher alcohol content "beers and ales" but can sell beer and wine. They outlined in their letter why the lower alcohol content beers (4%) and the higher alcohol content wine (17%) can be sold in Southlake but the middle alcohol content ales and malt liquors (higher than 4%) cannot. [Please see attached letter from Texas Petition Strategies, Inc. for further history.] Texas Petition Strategies, Inc. submitted petitions to the City Secretary's Office on July 18, 2008 containing 2,903 entries in support of calling a local option election to legalize "the sale of beer and wine for off-premise consumption only." Tarrant County Elections Administration verified the petitions and accepted 2,584 signatures. [Letter attached.] According to State law, the required number of signatures needed on the petition is equal to 35% of the Southlake voters who voted in the last gubernatorial election which was held in November 2006. There were 6,971 Southlake voters in that election of which 35% is 2,439. Since enough signatures were submitted and verified, the City Council must order the election for the next uniform election date which is November 4, 2008. A contract for election services with Tarrant County Elections Administration will be brought to the City Council for consideration on a future agenda. Financial Impact: Approximately $10,000 which has been included in the proposed FY2009 budget for the City Secretary's Office Citizen Input/ Board Review: Not applicable Legal Review: City Attorney has reviewed resolution Supporting Documents: Resolution No. 48-041 Letter from Tarrant County Elections Administration Letter from Texas Petition Strategies, Inc. RESOLUTION NO. 08-041 A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS CALLING FOR A SPECIAL LOCAL OPTION ELECTION PURSUANT TO THE TEXAS ELECTION CODE TO BE HELD ON NOVEMBER 4, 2008; DESIGNATING A POLLING PLACE; ESTABLISHING PROCEDURES FOR EARLY VOTING; AUTHORIZING THE CITY SECRETARY TO MAKE SUBMISSIONS TO THE UNITED STATES JUSTICE DEPARTMENT FOR PRE-CLEARANCE APPROVAL; ESTABLISHING OTHER PROCEDURES FOR CONDUCTING THE ELECTION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Southlake, Texas, is a home-rule municipality acting under its charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and, WHEREAS, the city has received a petition in conformance with the requirements of Chapter 501.of the Texas Election Code (the "Code") requesting that the City call a local option election; and, WHEREAS, the Council has received the report from the Tarrant County Elections Administrator and hereby determines that it is correct and that there are sufficient signatures on the petition to require an election; and, WHEREAS, Chapter 501 of the Code requires that this election be called to determine whether the voters desire to allow the legal sale of beer and wine for off premise consumption; and, WHEREAS, by this Resolution, it is the intention of the City Council to designate a polling place for the election, and to establish and set forth procedures for conducting the election; and, WHEREAS, the City will enter into an Agreement for Election Services with Tarrant County; and, WHEREAS, the changes from prior practices may require pre-clearance under the Federal Voting Rights Act; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, THAT: Section 1. SPECIAL ELECTION CALLED. A special election shall be held in the City of Southlake, Texas, on Tuesday, November 4, 2008, at which the following will be on the ballot: FOR THE LEGAL SALE OF BEER AND WINE FOR OFF-PREMISE AGAINST CONSUMPTION ONLY Section 2. POLLING PLACE. The polling place for the Special Election for all precincts of the City shall be Southlake Town Hall, 1400 Main Street, Southlake, Texas. The polls shall be open from 7:00 a.m. to 7:00 p.m. on Election Day, in accordance with and pursuant to the requirements of the Code. Section 3. JOINT ELECTION AGREEMENT. Prior to the election, the City anticipates that it will enter into a joint election agreement and contract for election services with Tarrant County, conducted under the authority of Chapter 271 of the Election Code (the "Agreement"). Section 4. APPOINTMENT OF ELECTION JUDGE AND ALTERNATE ELECTION JUDGE. The Presiding Election Judge and Alternate Presiding Judge shall be appointed by Tarrant County as authorized by Chapter 271 of the Texas Election Code ("Code"). Section 5. METHOD OF VOTING. Early voting by personal appearance shall be conducted exclusively on Tarrant County's eSlate electronic voting system. On Election Day, voters shall have a choice between voting on the eSlate electronic voting system or by a paper ballot that is scanned at the polling place using Tarrant County's eScan voting system. All expenditures necessary for the conduct of the election, the purchase of materials therefore, and the employment of all election officials are hereby authorized, and shall be conducted in accordance with the Agreement and the Code. Section 6. EARLY VOTING. a. Early voting by personal appearance. Early voting by personal appearance shall commence October 20, 2008 and shall continue until October 31, 2008 between the hours of 8:00 a.m. and 5:00 p.m. on each day that is not a Saturday, Sunday, or an official state holiday. Additional early voting hours by personal appearance will be established in the Agreement. Early Voting shall be conducted at the office of the City Secretary, 1400 Main Street, Suite 270, Southlake, Texas 76092 and at other locations established in the Agreement. b. Early voting by mail. Steve Raborn, the Tarrant County Election Administrator ("Elections Administrator"), is hereby designated as Early Voting Clerk for the general and special election. Applications for early voting by mail may be delivered to the Elections Administrator at the following address: Early Voting Clerk, 2700 Premier Street, Fort Worth, Texas 76111, not earlier than September 5, 2008 and not later than close of business on October 17, 2008, if delivered in person, and October 28, 2008 if delivered by mail. Early voting ballots shall be mailed to the Elections Administrator at the same address. C. Early Voting Ballot Board. Early voting, both by personal appearance and by mail shall be canvassed by the Early Voting Ballot Board which is hereby created. The Presiding Election Judge and Alternate Presiding Election Judge, appointed herein, shall serve as the presiding officer and alternate presiding officer, respectively, of the Early Voting Ballot Board. The other election officers serving at the election shall serve as the other members of the Early Voting Ballot Board. Section GOVERNING LAW AND QUALIFIED VOTERS: The election shall be held in accordance with the Constitution of the State of Texas and the Code, and all resident qualified voters of the City shall be eligible to vote at the election. Section 8. PUBLICATION AND POSTING OF NOTICE OF ELECTION: Notice of the election shall be published in accordance with Chapter 4 of the Code and the City Charter. Section 9. SUBMISSIONS TO THE UNITED STATES JUSTICE DEPARTMENT: The City Secretary of the City of Southlake is authorized to make such submissions as are necessary to the United States Justice Department to seek pre-clearance approval for additional length of the absentee voting period. Section 10. DELIVERY OF RETURNS: In accordance with the Code, immediately after the closing of the polls on the day of the election, the election officers named in this resolution shall make and deliver the retums of the election in triplicate as follows: one copy shall be retained by the Presiding Judge; one copy shall be delivered to the Mayor of the City; and one copy of the returns together with the ballot boxes and all election supplies shall be delivered to the City Secretary. All election records and supplies shall be preserved by the City Secretary in accordance with the Code. Section 11. NECESSARY ACTIONS: The Mayor and the City Secretary of the City, in consultation with the City Attorney, are hereby authorized and directed to take any and all actions necessary to comply with the provisions of the Code in carrying out and conducting the election, whether or not expressly authorized herein. Section 12. EFFECTIVE DATE: This resolution shall be effective upon its adoption PASSED AND APPROVED THIS THE 19th DAY OF AUGUST, 2008. ATTEST: CITY OF SOUTHLAKE, TEXAS BY: Mayor City Secretary coI111T > TARRANT COUNTY STEVE RABORN, CERA ELECTIONS ADMINISTRATION Elections Administrator August 8, 2008 Lori Payne, City Secretary City of Southlake 1400 Main St Suite #270 Southlake Texas 76092 Dear Ms.Payne, GAYLE HAMILTON, CERA Assistant Elections Administrator This is to certify that petitions signed by 2,903 voters in the City of Southlake were received and verified in my office. City of Southlake requires 2,450 accepted signatures. Total of accepted signatures are as follow: Total Signatures verified: 2,903 Signatures Accepted: 2,584 (2,577 Tarrant Co. + 7 Denton Co) Final verification indicates sufficient signatures to call an Election to Legalize in the City of Southlake. If you have any questions, please call me (817) 831-6454 Sincerely, Patricia Benavides Voter Registration Imp -r~n~, RECEIVED AUG - 8 M OFFICE OF CITY SECREM 2700 PREMIER STREET, PO BOX 961011, FORT WORTH, TEXAS 76161-0011 (817) 831-8683 (VOTE) TDD (817-759-7801) Texas Petition Strategies, Inc. 1201 West Abram • Arlington, Texas 76013 • (817) 265-2438 816 Congress Avenue, Suite 1125 • Austin, Texas 78701-(512)482-8011 To: Interested Parties P From: John Hatch, Texas Petition Strategies Date: July 11, 2008 Subject: Local Option Election in Southlake T History There have been many questions on why Southlake retailers are not allowed to sell the higher alcohol content "beers and ales" but can sell beer and wine. The sell of beer (4%) was legalized in the City of Southlake in 1977. In 2001, HB 1222 by Truitt, was passed allowing a special local option election in the city of Southlake. Without passage of this bill, cities located in more than one county were prohibited from conducting LOE's in the city only. This prohibition was removed in 2003 so multi- county cities can conduct LOEs without special legislation. The 2001 bill incorporated into the Texas Alcoholic Beverage Code Sec. 251.19. The legislation allowed for an election to legalize "the sale of wine for off premise consumption only." It is the definition of "wine" combined with the election for the lower content beer that prohibited the higher content ales and malt liquors. In effect, the lower content beers (4%) were approved and the higher alcohol content wine (17%), but the middle alcohol content ales and malt liquors (higher than 4%) were not legalized. Thus the TABC created a special class `Q" permit that only applies to Southlake, Texas. How to Fix the Problem Today.there are ten different versions of legalized sales. Communities can pass more than one version. For example, TPS conducted an election in 2007 for the Town of Flower Mound whereby the community had already voted to allow the legal sale of beer and wine in 1997. However, in 1999, the legislature ruled that any beer/wine election prior to '99 can only sell alcohol up to 14% by volume. Beer/Wine LOEs conducted after '99 can sell up to 17% by volume. At the request of a local beer/wine store owner, TPS conducted another effort to allow the legal sale of beer and wine for off premise and another petition to allow restaurant sales. Both efforts passed in 2007. Now they have two versions of beer/wine off premise and it is the 2nd version passing that now allows them to have higher content alcohol. To fix the situation in Southlake, an election to legalize "the legal sale of beer and wine for off premise consumption only" should be conducted. The current definition of beer will allow the higher content "ales and malt liquors" and wine will still be approved up to 17%. Stems to call an Election Local option elections can only be held on two uniform election days each year-May and November. State law requires that in order to have a local option election, a petition Page I of 3 711412008 must be circulated and contain a number of signatures equal to 35% of the number of people who voted in the last election for Governor (2006). By law, the petition can only be circulated for 60 days, however there are time limit requirements of when the City can order the November election. This is based on when the City Council meets in regular session. The last meeting of the Southlake City Council prior to the deadline for calling a November election is August 19th. Thirty days after the petitions have been submitted, the City Secretary must submit her report to the City Council detailing if enough signatures have been verified and if so, the City Council is required to call the election. Therefore, in order to have an election this November, approximately 2400 signatures of qualified voters must be gathered and submitted to the City Secretary by July 18th (or July 20`h). The City Council will meet on August 19 and hear the Secretary's report. If enough signatures are certified, the Election Order is approved by the Council placing the issue before the voters on the November 4th, ballot A simple majority of voters must approve the ballot proposition.. With a positive outcome from the voters, retailers can begin application for a revised license to now be able to sell the higher content ales and malt liquors. Timeline July 9th Petitions were issued by Southlake City Secretary By law, the petitions could be circulated until September 8`'. July 18th Last Business Day petitions can be submitted (for November election) (July 20th is the actual last day the petitions could be turned in, with the permission of the City Secretary. By law they (the City) are allowed to accept the petitions on the weekend, but it is the City's discretion.) If the petitions are submitted after this date (but by September 8a') the election would be held May '09. August 19 First Council Meeting after the 30-day verification period. City Secretary issues report to Council and Council orders November election. November 4 Presidential Election Ballot and local option alcohol proposition submitted to voters Q: If the effort fails, will this "dry up" Southlake? A: No. This is a petition to call for a "legalization" election. A separate "prohibition" petition and election would have to be held to prohibit alcohol sales once they are legalized. If this effort fails, the effect is treated as though no election had been held at all. The "wet/dry" status of Southlake reverts to how it was prior to the election. Page 2 of 3 711412008 Q: What if they don't have enough signatures by July 18th (20th)? Do we have to start over? A: No. Although it will require a great deal of effort to gather that many signatures in the shorter timeline, the petition would just not be submitted until enough valid signatures have been gathered. The election would be held in May '09 rather than November '08. Q: Will this allow the sale of liquor or bars and nightclubs? A: No. This petition only calls for an election to allow "the legal sale of beer and wine for off-premise consumption only." Page 3 of 3 711412008