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HomeMy WebLinkAbout122799S CC Min6 0 CITY COUNCIL SPECIAL SESSION MONDAY, DECEMBER 27,1999 MUNICIPAL BUILDING 3800 UNIVERSITY BLVD. 6:30 P.M. The City Council convened in Special Session in the Municipal Building Conference Room (3800 University Blvd.) on December 27, 1999, with the following members present: Mayor Lewis presiding, Council Members Bertini and May. The City Manager, City Secretary, City Attorney, Public Works Director and Finance Director were also present. Council Members Ballanfant and Grubb were absent. The notice for this meeting was posted in accordance with the Texas Government Code, Chapter 551, on the 21" day of December 1999 at 5:00 p.m. Agenda Review: The City Council reviewed the regular meeting agenda and discussed items under consideration with the Staff. Franchise Fee Elimination. Matters related to a report on the elimination of franchise fees. o~ zip City Manager Sherman Yehl reported that the City levies a franchise tax against all utility companies providing service within its boundaries. These fees are usually outlined in franchise agreements that are executed from time to time between the City and individual utility providers. Franchise taxes were first a fee for the use of the public right of way. Because the utility companies wanted to standardize how the fees were assessed, the street use fee gradually evolved into a tax, based on a percentage of the gross receipts the utility received from customers within the boundaries of the City. These fees are included as part of a customer's bill, usually under the heading City franchise tax. West U expects to receive $739,000 from utility companies operating inside our city limits, which represents a significant source of revenue for the General Fund budget. This equates to 4.34 cents per $100 valuation of the property tax rate. Put another way, the City would have to increase taxes $4.3 cents to provide sufficient revenue to eliminate the franchise taxes. City Council Special SeA December 27, 1999 0 Budgeted Franchise Taxes Reliant (HL&P) $425,000 Southwestern Bell 150,000 Warner Cable 104,000 Natural Gas 60,000 Since the current formula for assessing franchise fees is usually a percentage of a customer's service bill, eliminating these taxes could shift the cost of government. In particular, cable fees would be extended to all residents and not just subscribers. Furthermore, property tax payers with large investments in West U might bear a larger portion of these costs as a result of appraised value and not on use of the service. Some costs would also be temporarily shifted from renters to landlords. Currently most cities in the United States collect franchise fees from utility companies. At one time these fees were hidden and paid directly by the utility companies. These companies have been successful with public utility commissions and other regulatory agencies to assess customers on an individual basis, and submitting these collected fees to local governments. Eliminating the fees would obviously reduce utility bills. Whether or not customers would accept the shift back to the property tax rate is not known, although some property owners would further benefit from the deductions in federal income taxes paid for these fees if paid as part of property taxes. Should the Council decide to implement such a major policy change, it should not be done without extensive public discussion and debate. This item will be discussed further during the 2001 Budget process Report on extension of building permit. Matters related to a report on the house located at 4130 Riley and a request by the owner for an extension of time of the building permit authorized by a Settlement Agreement executed on May 5, 1999. Public Works Director Ed Menville reported that the building permit for the project had been extended through January 3, 2000. Work at the site has been constant and should be close to completion by this date. Posting agendas for sub-committees. Matters related to posting agendas for sub-committees. The City Council agreed that agendas would not be posted for sub-committees. Report from Board or Commission Liaisons. The City Council reported on Board or Commission meetings attended by the liaisons. City Council Special Sessi December 27, 1999 Council Member Bertini reported that the Traffic Task Force had identified 3 hot spots. The report will be presented to the City Council at a later date. The Town Meeting to discuss traffic issues will be held on Monday, February 21, 2000. Mayor Lewis reported that Bob Park and Dorothy Zink had been appointed as the City's representatives to the Area Planning Advisory Council of the Area Agency on Aging. Inquiries, requests and complaints. The City Council reviewed matters received from the public and referred them to the appropriate department or placed them on a future agenda for consideration or action. Members of the City Council received numerous calls and letters regarding trash pickup on holidays. The Public Works Director will provide a cost estimate to have a crew on duty during holidays at the next meeting. The City Staff wilt provide a report on the pre-treatment of trees at the next meeting. The City Council discussed a letter received from Beverly Denver of the West University Journal requesting that the Special Session meetings be tape-recorded. The Council agreed that the City Staff would not record the Special Sessions but that anyone was allowed to personally record the meetings. Adiournment. With no further business to come before the City Council at this time, a motion was made by Council Member May, seconded by Council Member Bertini, to adjourn. The Special Session adjourned at 7:28 p.m.