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HomeMy WebLinkAboutJUNE 13,1978 ROLL CALL I NEWCASTLE PARK I RJi;SOLUTION NO. 4753 (URBAN MASS TRANSPORTATION) ( RESOLUTION NO. 4754 (URBAN MASS TRANSPORTATION) ( 1 BUDGET HEARING (CONTINUED) 23:9541 M I NUT E S CITY COUNCIL OF THE CITY OF ARCADIA ADJOURNED REGULAR MEETING JUNE 13, 1978 The City Council met in an adjourned regular session on June 13, 1978 at 7:30 p.m. in the Arcadia City Hall Conference Room. PRESENT: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None On MOTION by Councilman Gilb, seconded by Councilman Saelid and carried unanimously the $800 received from the Town Aldermen of Newcastle, Australia (Arcadia's Sister City) was accepted with appreciation. It will be used for the plaque erected at Newcastle Park. The City Attorney presented, explained the content and read the title of Resolution No. 4753 entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA AUTHORIZING THE ASSISTANT CITY MANAGER TO FILE WITH THE DEPARTMENT OF TRANSPORTATION URBAN MASS TRANSIT ADMINIS- TRATION, A GRANT APPLICATION FOR OPERATING ASSISTANCE FUNDS UNDER THE URBAN MASS TRANSIT ACT OF 1964 AS AMENDED FOR FY 1975-76." It was MOVED by Councilman Margett, seconded by Councilman Gilb and carried on roll call vote as follows that the further reading of the full text be waived and that the same be ADOPTED. AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None None The City Attorney presented, explained the content and read the title of Resolution No. 4754 entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA AUTHORIZING THE ASSISTANT CITY MANAGER TO FILE WITH THE DEPARTMENT OF TRANSPORTATION, URBAN MASS TRANSIT ADMINIS- TRATION, A GRANT APPLICATION FOR OPERATING ASSISTANCE FUNDS UNDER THE URBAN MASS TRANSIT ACT OF 1964 AS AMENDED FOR FY 1977-78." It was MOVED by Councilman Gilb, seconded by Councilman Margett and carried on roll call vote as follows that the further reading of the full text be waived and that the same be ADOPTED. AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None None The City Co~ncil then considered revenue measures starting with ADMISSION TAXES. Royce McKinley, Santa Anita Consolidated, Inc., read a statement prepared by the President of the Los Angeles Turf Club, operator of the Santa Anita Race Track and a 50 percent partner in Santa Anita Fashion Park. The various amounts in sales, admission, property, utility and business license taxes the City has received from that source were indicated. It was stated therein in part that Santa Anita is willing to do its share and more in making up the apparent deficiency to help the City meet its fiscal responsibilities to the community. It was submitted that the admission taxes at Santa Anita Race Track for its regular season and for the Oak Tree Race be increased a total of $175,000... that if this increase is imposed Santa Anita will be bearing directly a substantial portion of the 6-13-78 - 1 - 23:9542 increase and not passing this amount through to its customers. In conclusion the statement set forth that if Proposition 13 is declared unconstitutional or that the City receives more funds from outside sources than it anticipates it would be very difficult to obtain a reversal of the admission tax and other taxes which are decreed in the present circumstances. In this respect it was asked that the City Council in adopting this new taxing ordinance state that it auto- matically terminates if Proposition 13 is declared invalid. (This statement is on file in the office of the City Clerk.) In response to an inquiry as to the legality of refunding in the event the Proposition is declared invalid, the City Attorney said he could not recommend for or against it until he has an opportunity to research the matter. During the ensuing discussion the matter of traffic control during race seasons was discussed. PROPERTY tRANSFER TAX. The possibility of imposing a tax of 1/2 of 1% was explored. The proposed tax would apply to the sale of residential and commercial properties which, if applied, would require the discontinuation of the County documentary transfer tax as a city cannot have two types of property transfer taxation. This tax would come directly to the City and would be part and parcel of escrow instructions. 1 UTILITY ~ TAX. This next possible source of revenue was considered - that"of increasing said tax. It is now 5 percent tax on all utilities. Staff recommended a 2% additional tax. It was noted that there is an exemption for those on specific income levels --- $5000 for a single person and $7500 for married couples. Also the disabled'are exempted. There are about 1200 such exemptions now and it is renewed annually. If persons coming under these income levels receive social security they still receive the exemption. PLANNING AND BUILDING FEES. These could amount to $19,000. The City Council would like to review all of the charges in this category. SEWER SERVICE CHARGE. This charge would be placed on the water bill for collection and the funds as collected would go into a sewage fund to be used for the operation, maintenance and repair of the City sewer system. It was noted that this charge is currently being made by some other cities and/or counties. It was estimated that this could bring in about $129,396. During this consideration Herb Fletcher, 175 W. Lemon Avenue, spoke to the possibility of the City taking over the responsibility of the sewer line from the property line to the middle of the street. STREET SWEEPING CHARGE. This charge would be based on street front footage, i, e., 509 per month for 75 to 100 ft., 759 per month 1 for 100 to 150 ft.... and over 300 ft. $6.00 per curb mile. This charge would also be placed on the water bill for collection and the streets would be swept once a week. During this consideration Royce McKinley of Santa Anita Race Track asked Council to think of the effect on that facility -- they have 3 curb miles and it would cost them $3600 per year. TRANSIENT OCCUPANCY TAX. This so-called bed tax was proposed to be increased 1%. This ~ld increase the total tax to 6%. BUSINESS LICENSE FEES. bring in an additional commented in part that This was proposed for a 50% increase and would $100,000 revenue annually. Councilman Saelid he had raised the possibility recently of 6-13-78 - 2 - \~:.::' .:. ';". ':."~. . ;1_ ,~.:" - 23: 9543 increasing this fee and including some additional service to the businessman who is endeavoring to get started in the City without his having to go to the Library to read the Code sections applicable to his particular interest. STREET LIGHTING CHARGE. Some discussion held on this possibility and the Director of Public Works explained the procedure. 1 AMBULANCE~. It was recommended that this fee be a $55 base rate for all users. An estimated additional revenue of $30,000 was submitted. It was noted that $55 is the same as the County charge. The problem of collections was discussed, however, the City manages to collect between 70 and 80 percent of the charges. EARNING TAX. The City Council did not lean toward this payroll tax... individual earnings... During this consideration Royce McKinley felt this tax would be a detriment to hiring at Fashion Park and at the' Track... it would drive the lower paid employees out of the City entirely. GROSS RENTAL RECEIPTS (commercial). If adopted this would apply ~tly to commercial property excluding all residential. It was noted that Los Angeles has such a tax, however, at'this time there is no value established from which to work. RECREATION FEES. It was the consensus that these programs could become more self-supporting. However, the Recreation Commission and Department are working toward this end. LIBRARY SERVICE FEE. To be considered at a later date. '. PARKING TAX. Discussion ensued on the problems encountered previously when endeavoring to collect a parking tax.... people just parked on the public streets. OVERNIGHT PARKING~. This tax was considered for an increase and the problem of keeping the streets swept was explored. Cars are parked on the street night and day especially in the apartment locations. It was the consensus that this fee could be increased. To be explored. I The Director of Public Works asked for reconsideration of a proposed reduction in his budget by the elimination of two maintenance workers in the General Services Division. It was noted that State Gas Tax Funds may be used for street maintenance and it was recommended that $15,000 be transferred from State Gas Tax Funds to the General Fund to offset the cost of one maintenance worker. Thus one maintenance worker will be eliminated. It was so MOVED by Councilman Gilb, seconded by Councilman Pellegrino and carried on roll call vote as follows: AYES: NOES: ABSENT: Councilmen Gi:b, Margett, Pellegrino, Saelid, Parry None None POLICE Sta~f asked that the City Council consider additional changes. In the Police Department budget it was recommended that one police vacancy be approved instead of the two due to one employee who is out with an injury. It was MOVED by Councilman Gilb, seconded by 6-13-78 '3- REVENUE SHARING FIRE ORD INANCE NO. 1638 INTRODUCED (Business License Fees) 23:9544 Councilman Margett and carried on roll call vote as follows that this recommendation be APPROVED. AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None None Some discussion held on the reduction for the Juvenile Diversion Project as reflected in the Revenue Sharing Budget. It was the consensus that this figure should maintain at least until the first of the year to see what, if anything, materializes from the State. Another item in the Revenue Sharing Budget - Dial-A-Ride.. staff explained the City's position and the possibility of losing all of the Federal funding; that the applications for funding are ready and awaiting authorization for transmittal. A staff report will be I forthcoming on this and other transportation items on June 20. It was then MOVED by Councilman Margett, seconded by Councilman Pellegrino and carried on roll call vote as follows that this item be held in abeyance until June 20. AYES: NOES: ABSENT: Councilmen Margett, Pellegrino, Saelid, Parry Councilman 'Gilb None Continuing consideration of changes proposed in the Fire Department the Fire Chief explained the effect if the present vacancies are maintained. This would require that the current constant manning level of 16 be reduced by one position for the entire year and the holiday pay reduction would require that the on-duty manning level would be reduced by one position 40% of the year (144 shifts). This effects fire fighting capabilities when responding to a structure fire which consists of two engines. There would be a reduction from 13 men to 12 throughout the year and further reduced to 11 men 40% of the year. It was MOVED by Councilman Gilb, seconded by Councilman Pellegrino and carried on roll call vote as follows that the holiday pay be reinstated. AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None None Following considerable discussion on increased fees or tax the following introductory action was taken. THE RECORD HEREBY INDICATES THAT THE FOLLOWING ORDINANCES WERE PREPARED WITHOUT INCLUS ION ON THE WRI'ITEN AGENDA UNDER URGENT CIRCUMSTANCES DUE TO THE PASSAGE OF PROPOSITION 13. The City Attorney presented for the first time, explained the content and read the title of Ordinance No. 1638, entitled: "AN ORDINANCE OF THE CITY OF ARCADIA AMENDING PART 2 OF CHAPTER 2 OF ARTICLE VI OF THE ARCADIA MUNICIPAL CODE LEVYING BUSINESS LICENSE FEES FOR USUAL CURRENT EXPENSES OF THE CITY OF ARCADIA." ! It was MOVED by Councilman Gilb, seconded by Councilman Saelid and carried on roll call vote as follows that the further reading of the full text be waived. I AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None None Councilman Gilb further MOVED that Ordinance No. 1638 be INTRODUCED. Motion seconded by Councilman Saelid and carried on roll call vote as follows: AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid Councilman Parry None 6-13-78 - 4 - ORD INANCE NO. 1636 INTRODUCED (Trans ient Occupancy) I ORDINANCE NO. 1642 INTRODUCED (Street Sweeping) OIUlINANCE NO. 1640 INTRODUCED (Sewer Service) OVERNIGHT PARKING FEE (June 20 consideration) I PlANNING & BUILDING FEES UTILITY USERS' TAX \'--- . ,'C . ..' ~.; ~ -' ' 23:9545 The City Attorney presented for the first time, explained the content and read the title of Ordinance No. 1636, entitled: "AN ORDINANCE OF THE CITY OF ARCADIA AMENDING SECTION 2662 OF THE ARCADIA MUNICIPAL CODE BY LEVYING A UNIFORM TRANSIENT OCCUPANCY TAX FOR USUAL CURRENT EXPENSES OF THE CITY OF ARCADIA." It was MOVED by Councilman Saelid, seconded by Councilman Pellegrino and carried on roll call vote as follows that the further reading of the full text be waived and that the same be INTRODUCED. , AYES: NOES: ABSENr: Councilmen Gilb, Margett, Pellegrino" Saelid, Parry None None The City Attorney presented for the first time, explained the content arid read the title of Ordinance No. 1642, entitled: "AN ORDINANCE OF THE CITY OF ARCADIA AMENDING THE ARCADIA MUNICIPAL CODE BY ADDING TO CHAPTER 6 OF ARTICLE II THEREOF, A NEW PART 9.4 ENTITLED STREET SWEEPING CHARGES FOR USUAL CURRENT EXPENSES OF THE CITY OF ARCADIA." It was MOVED by Councilman Gilb, seconded by Councilman Margett and carried on roll call vote as follows that the further reading of the full text be waived and that the same be INTRODUCED. AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None None The City Attorney presented for the first time, explained the content and read the title of Oidinance No. 1640, entitled: "AN ORDINANCE OF THE CITY OF ARCADIA ADDING TO CHAPTER 6 OF ARTICLE II OF THE ARCADIA MUNICIPAL CODE A NEW PART 9.6 ENTITLED SEWER SERVICE CHARGE FOR USUAL CURRENT EXPENSES OF THE CITY OF ARCAD IA . " ! It waS MOVED by Councilman Gilb, seconded carried on roll call vote as follows that the full text be waived and that the same by Councilman Saelid and the further reading of I be INTRODUCED. AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None None Discussion held on increasing the cost of the overnight parking fee. If adopted this would be effectiye only on a renewal basis and new permits. It was MOVED by Councilman Gilb, seconded by Councilman Saelid and carried on roll call vote as follows that the City Attorney prepare such an ordinance for Council's consideration on June 20. AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None None During this conSideration it was noted that the work involved in complying with the various requir~ments is substantial' and Council concurred that these services could be increased so that the divisions could pay their own way, in part it least. Staff will proceed along this line. -, Mayor Parry MOVED to increase this tax by 1% (This motion later died for lack of a second). Councilman Sael,id objected to this particular tax as it would be a disadvantage to the homeowner because he couldn't deduct it from his income tax. During this consideration discussion held on the proposed property t?ansfer tax and it was the consensus of th~ City Council that it would like to consider this latter tax before a decision is made on the utility tax. It waS 6-13-78 - 5 - ORDINANCE NO. 1641 INTRODUCED Property Transfer Tax '\ ?< UTILITY USERS TAX REMAINS AT PRESENT RATE ORDINANCE NO. 1635 INTRODUCED Admissions Tax 23:9546 MOVED by Councilman Gilb, seconded by Councilman Pellegrino and carried on roll call vote as follows that the utility tax be TABLED until after the property transfer tax is considered. AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None None The City Attorney presented for the first time, explained the content and read the title of Ordinance No. 1641, entitled: "AN ORDINANCE OF THE CITY OF ARCADIA AMENDING CHAPTER 6 OF ARTICLE II OF THE ARCADIA MUNIC IPAL CODE BY ADDING THERETO PART 9.2 ENTITLED REAL PROPERTY TRANSFER TAX AND BY SUSPENDING THE PROVISIONS OF PART 8 AND PART 9 THEREOF. " I It was MOVED by Councilman Gilb, seconded by Councilman Pellegrino and carried on roll call vote as follows that the further reading of the full text be waived: AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None None Councilman Gilb further MOVED that Ordinance No. 1641 be INTRODUCED. Motion seconded by Councilman Pellegrino and carried on roll call vote as follows: AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid Councilman Parry (felt the amount should be a compromised figure) None The City Council then returned to its consideration of increasing the utility users' fee (Mayor Parry's motion to increase this tax by 1% DIED FOR LACK OF A SECOND). It was then MOVED by Councilman Saelid, seconded by Councilman Gilb and carried on roll call vote as follows that the utility users' tax remain at the present rate. AYES: NOES: ABSENT: Councilmen Gilb, Pellegrino, Saelid Councilmen Margett and Parry (Favored an increase) None The City Attorney presented for the first time, explained the content and read the title of Ordinance No. 1635 entitled: "AN ORDINANCE OF THE CITY OF ARCADIA AMENDING SECTIONS 2622.1 AND 2622.2 OF THE ARCADIA MUNICIPAL CODE BY LEVYING AN ADMISSION TAX ON HORSE RACING AND HARNESS HORSE RACING AND OTHER EVENTS FOR USUAL CURRENT EXPENSES OF THE CITY OF ARCADIA." It was MOVED by Councilman Gilb, seconded by Councilman Saelid and carried on roll call vote as follows that the further reading of the full text be waived: I AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None None Considerable discussion ensued on increasing the admission taxes during which Royce McKinley responded to questions and the Finance Director submitted some data indicating tax collected by other cities having race tracks. The cost to the City for traffic control was also explored. With relation to the subject ordinance Councilman Saelid stated for the record that this year in terms of its impact on the City he felt it is a fair ordinance in terms of what Santa Anita will return. His concern is that there is nothing built within the ordinance whereby the City can pace the cost of providing services and that in years to come the City will have less benefit from the racing operations.. as the racing days extend of course there would 6-13-78 _ 6 _ GILB EXCUSED I YOUTH SAFETY RUN ~-sP ENERGY MANAGEMENT PROGRAM (' ZERO BASED BUDGETING v I ~~J~T CERTAIN - ,".,", 23:9547 be more revenue produced... he was skeptical as to how much the City is going to see in terms of increased revenues as a result of any increase in price. Councilman Saelid did support the motion based on figures submitted by Mr. McKinley. It was then MOVED by Councilman Gilb, seconded by Councilman Margett and carried on roll call vote as follows "that Ordinance No. 1635 be INTRODUCED. o AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None None On MOTION by Councilman Margett, seconded by Councilman Saelid and carried unanimously Councilman Gilb was excused for the remainder of the meeting. On MOTION by Councilman Pellegrino, seconded by Councilman Margett and carried on roll call vote as follows $1500 was appropriated from General Contingency to cover expenses for the Youth Safety Run activities. AYES: NOES: ABSENT: Councilmen Margett, Pellegrino, Saelid, Parry None Councilman Gilb c It was MOVED by Councilman Saelid, seconded by Councilman Margett'and carried on roll call vote as follows that authorization be and it is hereby given to staff to submit an application to the Argonne National Laboratories for Comprehensive Community Energy Management Program providing the Planning Commission concurs. AYES: NOES: ABSENT: Councilmen Margett, Pellegrino, Saelid, Parry None Councilman Gilb Councilman Saelid submitted in part that he would hope the City Council will study the article in Western Magazine on zero based budgeting as used in the City of Huntington Beach. He felt this h would be a realistic way to approach City budgeting. He would also like some feedback from staff. Herb Fletcher, 175 W. Lemon Avenue, commented in part that in an endeavor to end the apparent confusion he would suggest that all taxing agencies agree to accept their pro rata share of what is forthcoming on the 1% property tax. At 1:30 a.m. June 14, 1978 the meeting adjourned to 7 p.m. June 20, 1978 in the Conference Room. ~~ Mayor a; ~ ATTEST: ~ City Clerk 6-13-78 - 7 -