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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