HomeMy WebLinkAboutMinutes 1982-07-20Mayor Roberta Cerri Teglia
Vice Mayor Mark N. Addiego
Council:
Ronald G. Acosta
Emanuele N. Damonte
Gus Nicolopulos
MINUTES 22.L
CITY COUNCIL
City Council Conference Room
July 20, 1982
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government
Code of the State of California, that the City Council of the City of South San
Francisco will hold a Special Meeting on Tuesday, the 20th day of July, 1982,
at 4:00 p.m., in the City Council Conference Room, 400 Grand Avenue, South San
Francisco, California.
Purpose of the meeting:
Adoption of a Resolution that rescinds Resolution No. 70-82
and changes the wording of the ballot measure on the General
Election of 11/2/82.
A RESOLUTION ORDERING AND CALLING A SPECIAL MUNICIPAL ELECTION
TO BE HELD ON NOVEMBER 2, 1982 FOR THE PURPOSE OF SUBMITTING
TO THE VOTERS A CITY MEASURE TAXING THE BUSINESS OF OPERATING
A COMMERCIAL PARKING FACILITY AND REQUESTING A CONSOLIDATION
WITH THE GENERAL ELECTION TO BE HELD ON THE SAME DATE AND
RESCINDING RESOLUTION NO. 70-82 ADOPTED JULY 7, 1982.
Dated:
2. Fi scal overview of the 1982-83~~u~t.~~~ ~Y~: '~~~/~/ ~
~e~ta Ce~ri Tegl ~a,~yor
City of South San Francisco
July 16, 1982
A G E N D A
SPECIAL MEETING
PLEDGE OF ALLEGIANCE
CALL TO ORDER:
City Manager Requested:
ACTION TAKEN
SPECIAL MEETING
Recited.
4:08 p.m. Mayor Teglia presiding.
Council present: Acosta, Nicolopulos,
Addiego, Damonte and
Teglia.
Council absent: None.
A Closed Session to discuss litigation
and the Mayor requested discussion of
a personnel matter at the beginning of
the meeting.
So ordered.
7/20/82
Page 1
AG E'N D A A C T I O N TAKEN
CLOSED SESSION:
RECALL TO ORDER:
CITY MANAGER
Adoption of a Resolution that rescinds
Resolution No. 70-82 and changes the
wording of the ballot measure on the
General Election of 11/2/82.
A RESOLUTION ORDERING AND CALLING
A SPECIAL MUNICIPAL ELECTION TO BE
HELD ON NOVEMBER 2, 1982 FOR THE
PURPOSE OF SUBMITTING TO THE VOTERS
A CITY MEASURE TAXING THE BUSINESS
OF OPERATING A COMMERCIAL PARKING
FACILITY AND REQUESTING A CONSOL-
IDATION WITH THE GENERAL ELECTION
TO BE HELD ON THE SAME DATE AND
RESCINDING RESOLUTION NO. 70-82
ADOPTED JULY 7, 1982.
Council adjourned to a Closed Session
to discuss litigation and a personnel
matter at 4:10 p.m.
The meeting was recalled to order at
4:50 p.m., all Council present, no
action taken.
CITY MANAGER
City Manager Birkelo stated that the
adoption of this Resolution would
rescind Resolution No. 70-82 and
changes the wording of the ballot
measure in the General Election in 1982.
He stated that this had to do with the
proposed tax to be submitted to the
voters on private commercial parking
operations in the City. He stated that
when this matter was presented to the
Council at the last meeting there had
been limited time for the City Attorney
and the Manager's Office to develop
the tax rate to be applied. He stated
that since that meeting when the 8%
had been recommended as being in line
with the Transient Occupancy Tax -
however the two were not similar as
the transient tax was authorized by
State law and this tax is a business
license tax on the operator. He stated
that the matter had been looked into
extensively in terms of service levels
that the operations need from the City
and the impacts that the business
produces. He stated that this led him
to conclude that the 8% rate is too
high, that a 5% rate is more justifiable
and particularly in a circumstance of
litigation.
Mayor Teglia asked if anyone in the
audience would like to speak on this
issue.
Mr. John Penna, South San Francisco
Chamber of Commerce, stated that the
Chamber was opposed to this measure
in any form and it was looked at as the
first step of a gross sales tax that
could be put into the business community.
7/20/82
Page 2
AGENDA ACTION TAKEN
CITY MANAGER
1. Adoption of a Resolution - Continued.
CITY MANAGER
He stated that the Chamber looked at this
as a measure anti-business and respectfully
request that this be dropped immediately.
Mayor Teglia questioned if this was a
vote of the Board.
Mr. Penna stated that it was a vote of
the subcommittee that will be reporting
back to the Board.
Mr. Louis Poletti stated that he had
not been notified of the last meeting
on this issue and wondered if it was
a public hearing. He stated that he
was preparing a parcel of land for a
parking facility. He questioned why
parking facilities were chosen to be
taxed and felt that a 5% tax was wide
open and could not be compared with
the motel/hotel tax. He stated that
vehicles park at the facilities
and the passengers are carted to the
Airport and do not use City facilities.
He spoke of the hardship this tax
would impose upon Park and Fly when
the firm was just beginning to break
even financially. He spoke of previous
attempts to effect a gross receipt
charge in the City that had been
defeated. He stated that this election
was going to be messy and questioned
why it could not be upset in the courts.
He stated that the City had not gone
through the business tax structure
often enough wi%h input from the
business community before going into
this tax measure. He stated that
Park and Fly had nine facilities and
could well afford to spend money to
defeat the tax measure.
Mayor Teglia stated that Park and Fly
payed a 5% tax on gross receipts to
the City of Millbrae for their operation.
Mr. Penna stated that there was not
a Park and Fly operation in Millbrae,
that the parking facility was owned
by the owners of the Holiday Inn.
7/20/82
Page 3
AGENDA
ACTION TAKEN
224
CITY MANAGER
1. Adoption of a Resolution - Continued.
CITY MANAGER
He said that he did not believe it was
a 5% fee, rather than that a lump sum
fee paid to Millbrae, which was different
than the situation being discussed. He
said that the use was intended to be
for hotel use and that the parking lot
use was a temporary situation until
the owners decided to build a hotel
on the site.
Mr. Poletti suggested that the City
make the parking facilities non-comformin9
uses that will be phased out eventually
and apply business license taxes on
the operations, instead of taxing on
gross receipts. He asked how the tax
would be applied and whether there
would be a grace period before the
tax was applied.
City Manager Birkelo stated that an
Ordinance would have to be drafted
which would cover the administrative
details of the tax when approved by
the voters. He stated that there had
been discussion of a grace period;
payment on a once a year annual basis.
Mr. Poletti stated that the City had
fifteen million dollars of marketable
assets that could be sold or leased
to bring in a million a year in revenue
to alleviate the financial crises that
brought about the tax measure.
Discussion followed on the the City's
property tax and business licence tax
revenues.
Mr. Tim Chavez, Parking Corp. of
America, stated that he believed that
8% was ridiculous and that 5% was still
too high. He spoke in detail of the
rates charged by his company and his
competitor.
Ms. Laura Harper, Park and Fly, stated
that Mr. Bloom had said that the City
should increase the business license
taxes so that every business would
pay its fair share.
7/20/82
Page 4
ACTION TAKEN
CITY MANAGER
1. Adoption of a Resolution - Continued.
CITY MANAGER
City Manager Birkelo stated that the
two facilities paid a total of $18,400
of which $2,900 represents the City's
share of the property tax.
Mr. Poletti stated that everyone
wanted to pay some kid of a tax, but
not a gross receipts tax.
Councilman Addiego questioned the
fairness of a tax based on the number
of stalls and whether the stalls were
to be based upon being empty or full.
Discussion followed on business license
taxes versus gross receipts taxes; the
business community being afraid of a
gross receipts tax; the turn over of
stalls in a regular time period; the
charge of $200 a month for vans to
pick up patrons;that the operators pay
for six vans; the fact that all agenda
material was on desplay at three
locations in the City for the citizens
and that requests for copies were
honored at fifteen cents a copy; what
the difference would be in revenue if
the proposed tax was lowered to 5%
rather than 8%; occupancy levels of
the lots; other options available to
the City for revenue rather than a
gross receipts tax against the parking
facilities; the fact that a 1% gross
receipts tax would produce $25,000
to the City in revenue on the parking
facilities; that a business license
tax increase would have to be a
ballot measure to be voted on by the
people, etc.
Mr. Penna asked if it was better to
take money from the General Fund to
balance the budget or to reserve money
for the $700,000 needed this year by
coming up later with a well thought
out taxing program to facilitate the
future.
M/S Addiego-Damonte - To adopt the
Resolution to impose a 5% tax on
gross receipts.
7/20/82
Page 5
AGENDA ACTION TAKEN
CITY MANAGER
1. Adoption of a Resolution - Continued.
2. Fiscal overview of the 1982-83
Budget.
CITY MANAGER
RESOLUTION NO. 75-82
Carried by majority roll call vote,
Nicolopulos voted no.
City Manager Birkelo stated that the
Council had received a report that
gave more accurate budget figures
which were based on the same proposal
of a week ago that calls for a cut
back of seven positions.
Mayor Teglia asked what had been done
about getting a proper evaluation of
the City's property holdings.
City Manager Birkelo stated that some
figures had been given to the Council
but if the Council wanted to sell some
land Staff could supply some fairly
good estimates.
Discussion followed on the depressed
state of the market and the time not
being right to sell property.
Director of Finance Lipton gave an
in-depth analysis of the revenues
received and stated that it was 99%
of the estimated revenues. He
stated that the estimate represented
an 8% growth of assessed valuations
in the City by the County Controllers
Office. He continued, saying that
there was a conservative increase in
sales tax and licences and permit fees.
He spoke of the decrease in some of
the subventions and interest income
and other sources of revenues. He
stated that to arrive at the $15,809,250~
Staff planned to transfer funds from
revenue sharing to cover the capital
outlay, etc.
A discussion followed on City properties;
the Downtown Assessment Bonds, dates
of future budget hearings; the 2nd
week in September to be set as a Study
Session with the Sister City Committee,
etc.
7/20/82
Page 6
ADJOURNMENT:
RESPECTFULLY SUBMITTED,
Barbara A. Battaya, City~lerk
City of South San Francisco
Carried by unanimous voice vote.
Time of adjournment 7:10 p.m.
APPROVED:
'--~erta Cerri Tegl i a, magyar
C~ty of South San FranciSco
The entries of this Council meeting show the action taken by the City Council to
dispose of an item. Oral presentations, arguments, and comments are recorded on
tape. The tape and documents related to the items are on file in the office of
the City Clerk and are available for inspection, review and copying.
7/20/82
Page 7