HomeMy WebLinkAboutOctober 5, 1993• sz
5:30 - 7:00 p.m.
Special presentation of Downtown Revitalization design concepts and timeline
by Michael Freedman.
Pre - meeting 7:00 p.m.
A G E N D A
ARCADIA CITY COUNCIL MEETING
OCTOBER 5, 1993
7 :30 P.M.
INVOCATION
PLEDGE OF ALLEGIANCE
ROLL CALL: Council Members Fasching, Harbicht,
Lojeski, Margett and Ciraulo
MINUTES of the August 17 adjourned and regular meetings,
September 14 work session, and September 21 adjourned
and regular meetings.
MOTION: Read all ordinances and resolutions by title
only and waive reading in full.
PRESENTATION on the 1993 Breeder's Cup by Santa Anita Race
Track - for information only
PRESENTATION to Colt & Pony All Stars
1. PUBLIC HEARING
Consideration of amending Section 2671 of the Arcadia
Municipal Code to apply the utilities tax to cellular
access charges.
ORDINANCE NO. 1997 - INTRODUCTION - Amending
Section 2671 of the Arcadia Municipal Code
to apply the utilities tax to cellular access
charges.
2. Time reserved for those in the audience who wish to
address the City Council (five- minute time limit
per person).
ACTION
All Present
Agproved
Adopted
Introduced 5 -0
Joe Cork
Johanna Hofer
Raul Lopez
Mike Green
Brad Beck
Tom Benson
2 -
AGENDA 10/45/93
ACTIO
3.
RECESS CITY COUNCIL
4.
MEETING OF THE ARCADIA REDEVELOPMENT AGENCY
a. ROLL CALL: Agency Members Fasching, Harbicht,
Lojeski, Margett and Ciraulo
All Present
b. Consideration of.request by Hawkins Christmas
Tree Co. to lease 146 -170 E. Huntington for
the sale of Christmas trees.
AipDroved 5 -0
C. Adjourn to 5:30 p.m. October 12, 1993
5.
RECONVENE CITY COUNCIL
6_.
MATTERS FROM ELECTED OFFICIALS
7.
CONSENT ITEMS
a. Request to approve a general license agreement
that provides for staff approval of requests to
use the Armory site, including.the Girls Scouts
Halloween Haunted House.
Approved 5 -0
b. Request to modify budget by approving funds for
the annual maintenance of Armory site and
buildings.
Approved 5 -0
C. Report and recommendation for the purchase and
installation of carpeting in the Arcadia Police
Department offices.
AnDroved 5 -0
d. Report and recommendation for the purchase of a
one -ton utility truck for the Arcadia Fire
Department.
Approved 5 -0
e. Request for extended leave of absence - Planning
Department employee.
Approved 5 -0
2 -
AGENDA 10/45/93
a
40
ACTION
S. CITY MANAGER No audit; extend
contract 2 years;
Recommendation to authorize a financial and staff to prepare
performance review of Newco Waste Systems, and /or renewal contract
consideration of Newco renewal request and /or RFP. with Newco
9. CITY ATTORNEY
a.
ORDINANCE NO. 1991 - ADOPTION - Amending the
Arcadia Municipal Code to change the title of
the Personnel Department to the Human Resources
Department and designating the Personnel Board
as the Human Resources Commission.
Adopted 5 -0
b.
ORDINANCE NO. 1994 - ADOPTION - Amending Part 5
of Chapter 9, Article II of the Arcadia Municipal
Code to create a Community Development Department
with Planning, Building and Economic Development.
Adopted 5 -0
C.
ORDINANCE NO. 1998 - INTRODUCTION - Adding
karaoke regulations to the Arcadia Municipal
Code.
Introduced 5 -0
d.
Claim of James & Odelia Casey
Denied 5 -0
e.
Claim of S.L. St. Clair
Denied 5 -0
10. MATTERS FROM STAFF
11. ADJOURN to 5:30 p.m. October 12, 1993
Butler /Miller - Report re: building project delays
Dale - Include dollar figure in list of consultants
Butler - Have Code Enforcement investigate cars for sale at Pic 'N Save parking
lot.
Johnson /Miller - Report re: hand gun instruction for citizens.
Butler /Miller - Report re: Backflow device status
Lopez - Flowers on wall @ California /Sunset
- 3 -
AGENDA 10/5/93
J
y�r
Memotandum
October, 5, 1993
Date ------------- - - - - -- —
TO: City Council
FROM: James S. Dale, Finance Director`
SUBJECT: Utility Users Tax - Cellular Phones
In fiscal year 1992 -93, and again in the current fiscal year,
the State raided City Property Tax revenues by a total of
approximately $1.2 million for the two -year period in order to
balance their budget. Current information suggest that the
State will repeat their performance next year and again
balance the State budget in part on the backs of City and
County Governments. In an effort to address this reduction in
revenues as well as to minimize the negative impact of the
current economic climate, Staff has been exploring other
sources of revenues.
Extending the current utility tax to cellular phone use is an
attempt to increase revenues while considering the fairness
and appropriateness of such actions.
It appears both fair and equitable that cellular telephone
users pay the same assessment as traditional phone users and
extending the assessment will generate needed additional
revenues.
At the Pre - Council Meeting of August 3, 1993, the City Council
concurred that Staff should proceed with implementation of an
ordinance to amend the City's Utility Tax Ordinance regarding
Cellular telephones.
Background
A Utility Users Tax was first adopted in Arcadia in 1970. The
tax is imposed on telephone, electric and gas utility bills
and was initially established at 7 %. In 1980, the tax was
reduced to 5% and it is this rate that exists today.
Prior to 1989, the tax on telephone costs applied to
Intrastate costs only. Starting in 1989, the code was amended
to include interstate and international communication
services.
The Utility Users Tax generates approximately $3,900,00
annually (1993 -94 estimate) and is a major revenue source to
the General Fund. The Utility Tax that applies to telephone
use does not include cellular phone use. When the tax was
LASER IMAGED
1%W N"Oe
first implemented, cellular phones either did not exist or
there was not a significant market for such devices at that
time. Today, cellular phone usage has increased dramatically,
and there exists a significant market for this instrument.
There is currently pending litigation concerning the
application of a utility users tax on cellular phone usage
charges. However, the City may charge the tax on the cellular
access charge (the base monthly fee) . Until this pending
litigation is resolved, it is Staff's recommendation that the
proposed tax be applied to the access charge only. Once a
final judgment is rendered with regards usage charges, Staff
recommends the existing Utility User Tax Ordinance be revised
accordingly. The City Attorney concurs with this
recommendation.
There are two major providers of cellular phone services in
the Los Angeles area, LA Cellular and Pactel. Both providers
have indicated that if the telephone service purchasing habits
of greater Los Angeles is representative of Arcadia,
approximately, four to five per cent of the City's population
has cellular phones. According to the two providers, the
average monthly access charges is approximately $40.00. At
the current five per cent Utility Users Tax, the City can
expect approximately $60,000 in additional revenue annually,
if the tax were extended to cellular access charges.
Both cellular providers have indicated that they may require
60 to 120 days to implement this ordinance.
The attached ordinance makes the necessary changes to the
existing Utility Tax Code Section in order for the City to
collect Utility Tax on the cellular access charge.
Recommendation
It is recommended that the City Council introduce Ordinance
No. 1997 amending Section 2671 of the Arcadia Municipal Code,
to apply the uAil4ies tax to Cellular Access charges.
Approved:
Do al R. D
City Man
JSD:mlp
LASER IMAGED