1989 MAR 28 CC MIN(2ffL TO ClaMR by Mayor Jacotson at 7:00 p.m.
�•H' • ' Sr! •�' a• • • • - •
;• • ) VWv:
Councilman Anderson
Councilman Clutter
Councilman West
Mayor PrdI -em Dannen
Mayor Jacobson
i l•�
- present
- present
- present
- present
- present
(City Business Only-5 min.limit)
1. Brian O'Rourke, 627 Mariposa Ave. urged Council to proceed with the
Library expansion.
2. Jim McGoldrick, 640 California St is in disbelief of the financial
situation of the City budget and suggested tapping the industrial resource
as a means of raising revenue.
3. Willard Craig. 1414 E. Marie a is also in disbelief of the financial
strife the City has faced. Suggested a payroll tax.
4. Jim Corones, 519 D. Cater stated industry does not pay taxes.
5. Jim Butterworth, 206 W. urged Council to seek fairness in the
I I� '� 1 1�. M ►• I• d�'
1. Consideration of an ordinance which would amend chapter 3.24 of the E1
Segundo Municipal Code (Utility User Tax) to provide that businesses which
are cogenerators shall pay a Utility Tax regardless of whether or not the
business is an electrical corporation.
City Attorney Dolley read the title of the following:
0) I I• « •
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA
AMENDING SECTIONS 3.24.010 AND ADDING 3.24.030 OF CiAPI'ER 3.24 TITLE 3
OF THE EL SEGUNDO MUNICIPAL CODE TO PROVIDE THAT BUSINESSES WHICH ARE
EIECPRICAL COGGENTTERATIORS SHALL BE SUBJECT TO CM= 3.24.
Councilman Clutter MOVED, Councilman West SECONDED to waive further reading.
NM ON CAIUUM BY WInl4JUS VOICE Vt7I'E.
Councilman West MOVED, Councilman Clutter SECONDED to introduce. MM-10N
CAIStIED BY UI0 U240US VOICE MOPE.
2. Consideration of an ordinance which would amend chapter 3.24 of the E1
Segundo Municipal Code (Utility Users Tax) to provide that both intrastate
and interstate telephone calls are subject to the provisions of chapter
3.24.
Council opened this subject to public discussion.
Council Minutes
March 28, 1989
I�1�. 1�1y.\ M41► &C, :•
Peter Vern, Air New Zealand Representative expressed concern regarding the
introduction of this ordinance and its impact on his business.
Councilman Anderson stated he would like to see this ordinance enacted for
all phone users.
Councilman West expressed concern regarding the collection of this tax.
City Manager Sorsabal stated the estimate received from one sample carrier
at 2% is approximately $88,000 per year for intrastate only.
City Manager Sorsabal stated the actual tax is applied by the telephone
company and in turn the telephone company providing the service to that
business here in the city would be responsible for remitting the 2% of the
total to the City. This tax does not apply to residents. Manager Sorsabal
stated the tax is applied to the business where the call originates.
Adrian Collis, 640 E. Imperial, Fbrmer Tel% hgM ggM@W Employee stated the
company could change their billing address and alleviate themselves of the
tax.
Councilman Clutter stated he felt industry should carry the load of services
given through taxation.
City Attorney Dolley read the title of the following:
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA,
AMENDING SECTION 3.24.010(a) AND ADDING A NEW SECTION 3.24.055 TO TITLE
3, C[WIER 3.24 OF THE EL SEGUNDO MUNICIPAL CODE PROVIDING THAT
TELEPHONE CALLS SHALL BE SUBJECT TO THE PROVISIONS OF CHAPTER 3.24 OF
THE EL SEGUNDO MUNICIPAL CODE.
Mayor ProTem Danner MWED, Councilman Clutter SECONDED to waive further
reading. MWIC H Chi UM BY UHWn4)US VOICE WM.
Councilman Clutter MOVED, Councilman Clutter SECONDED to introduce. MJTION
CAW= BY r= FIOLLOWING VOICE V=:
AYES: Councilmen Anderson, Clutter, Dannen and Mayor Jacobson
NOES: Councilman West
3. City's Fiscal Condition: Reduction Policies and New Revenue Policies.
City Manager Sorsabal stated our library Financial Consultants presented two
alternate plans regarding the library. Manager Sorsabal explained the first
approach would be an act of defeasing the bonds. The City would place the
money in an Escrow Account and when the bonds come due in July of 1997 the
interest should be sufficient to pay for the interest on the principle and
the bonds.
If Council decided to do this, the City would have to pay $30,000 to bond
council for expenses incurred to date.
The second approach would be more difficult and more expensive. Each
bondholder we contacted; we would negotiate a price. Each bond has gone up
since the original purchase. Council would need approximately 1.9 million to
buy at today's market value and should a bondholder want a higher price it
would present a problem.
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Council Minutes
March 28, 1989
To remodel the existing library for upgrading to code only; would cost $1.55
million to remodel the entire facility. To date we have available $884,308
and the certificates of participation $1,740,000 and the library grant of
$159,000 bringing the total monies available for library remodeling to
$2,784,000.
City Manager Sorsabal stated the appropriations do not include the
landscaping, or furnislings.
Council opened this subject for public discussion.
1. Bill MoCby. 613 W. Sheldon asked various questions of Council. Urged
Council to move forward with at least bringing the library up to code.
City Manager Sorsabal stated the architect had stated previously he would
stay within the appropriations for completing the project, as initially
presented.
2. Betty Webb, Friend of I.ibrary asked why we're dealing with the library
problem.
Councilman Clutter stated the City has a lack of funds and is being forced
to choose what areas in the Community the City must reconsider for funding.
3. Jim Cornnes, 519 D. Center stated the population does not need a 50%
.increase in the library.
4. Ida MoOvy, 613 W. Sheldon urged Council to go forward with the library.
Mayor Pro'I'em Dannen read a letter received from the California State
Library, Library Development Services, 1001 6th Street, Sacramento;
addressed to Barbara Pearson, Library Director that stated there were no set
standards for the size of local libraries any longer.
5. Hal Hunt, 826 Bungalow Drive urged Council to begin the library
expansion.
6. Adrian Collis, 640 E. men al in support of library.
7. Eva Fava, 900 Cedar St. in favor of the library.
8. Beth Morida, 525 Lcmita in support of library.
9. Jim Butterworth, 206 W. in support of library.
10. Frank HMg, 435 Valley St. urged Council to reassess the figures in
overall budget considerations.
At the hour of 8:40 p.m. Council recessed. At the hour of 8:45 p.m. Council
reconvened in the Council chambers with all members present and answering
roll call.
Councilman West asked Director of Building Safety, McKinley Dalgleish if our
present library met earthquake standards.
Mr. Dalgleish stated it does meet present standards with the exception of
bracing the free - standing library shelves, which currently is pending on
Council's decision on expansion.
Mayor ProTem Dannen requested support in obtaining a written ruling from the
City Attorney regarding Proposition 62 and its impact on the City; a written
report regarding figures on the Library expansion project; requested a copy
of the City of Iris Angeles (Payroll Tax) ordinance and have staff estimate
what kind of revenue a payroll expense tax would generate.
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Council Minutes
March 28, 1989
IT WAS THE CONSENSUS OF COUNCIL TO DIRECT STAFF TO PROCEED WITH THE ABOVE
REQUESTS AS OUTLINED BY COUNCIL.
Cm=ilman West asked to resurrect the report regarding Utility Tax in the
surrounding cities.
Mayor Pr Tem Danner expressed concern regarding not taking action with the
funds on hand.
C )SED SESSIONS
Pursuant to the California Goverrmrlent Code a Closed Session will be
held on the following matters: NONE
At the hour of 9:25 p.m. Council adjourned.
1 ��
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Council Minutes
March 28, 1989