HomeMy WebLinkAboutMinutes - August 10, 1988 - CCCITY OF AZUSA
MINUTES OF THE CITY COUNCIL
ADJOURNED REGULAR MEETING
AUGUST 10, 1988 7:00 P.M.
the City Council of the City of Azusa met in adjourned
regular session at the above date and time in the Azusa
Civic Auditorium.
Mayor Moses called the meeting to order and led in the
salute to the Flag.
ROLL CALL
PRESENT: COUNCILMEMBERS: AVILA, STEMRICH, NARANJO, LATTA,
MOSES
ABSENT COUNCILMEMBERS: NONE
ALSO PRESENT
City Attorney Thorson, City Administrator Fuentes, Director
of Finance Craig, City Clerk Solis, Administrative Clerk
Toscano.
At the adjourned regular meeting of August 3, 1988, Council
adjourned meeting to August 10, 1988 so that staff could
meet with Mr. James Edwards to negotiate a compromise as a
alternative to including the movie and drive-in theaters
under the proposed admissions tax ordinance. City
Admipistrator advised that staff's efforts to reach a
compromise were unsuccessful. Staff estimated that the
admission tax would generate in general approximately
$350,000 per year. Of this amount, staff projected that
Edwards Theaters would generate roughly $200,000. At the
August 8th negotiation meeting, Mr. Edwards offered the City
$50,000 as a compromise solution. The amount offered is
approximately $150,000 lower than the projected revenue.
The City Attorney outlined three options regarding the
admissions tax, which were as follows:
Option 1. The City could adopt the admissions tax,
including movie theaters under the 10 percent rate;
Option 2. The City could adopt the, admissions tax,
specifically excluding movie theaters from the tax; or
Option 3. The City could adopt a revised Ordinance which
would enact an admission tax that would exempt theaters and
increase the Swap Meet fees and adopt a separate ordinance
that would, by adjusting the theater and drive-in business
license fee based on.the number of seats, to $11.65 per
seat, or space per year and, in addition, accept Edwards
Theater's offer of $50,000.
Mr. Edwards addressed the Council stating that he had not
received his copy of the proposed options until 4:40 this
afternoon and asked for explanation. The City Attorney
complied. Mr. Edwards expressed displeasure that the City
would expect the Edwards Theater Inc. to pay so much money
in taxes merely because they are doing business in the City
of Azusa. He suggested that the City allow the swap meet to
operate on Saturdays as well as Sunday and that would double
the admission tax on the swap meet.
Call to order
Roll Call
Also present
Statements
by Cty Atty
re: Options
Edwards
Theaters
Comments
J. Edwards
Sr. re:
adm. tax
Mr. -Edwards III addressed the Council stating that the whole
purpose of a swap meet was to find bargains and that raising
the admission tax would deter people from coming, meaning
vendors and buyers. He also noted that since the swap meet
could not use the parking lot on the Krems property, they
have to provide parking inside the swap meet which
eliminated vendor spots and they lost almost -half of the
vendors. He again stated that if the price of admissions
tax were raised, it would be devastating for the swap meet
business.
Mr. Lawrence Davidson, attorney for the Edwards Theater,
Inc. addressed Council stating that one of the important
ingredients needed in a growing City is an environment that
will encourage business and one which generates revenue over
the long term for the City. He noted that Mr. Edwards had
stated that increasing the cost of doing business for the
swap meet vendors is going to effectively eliminate that
activity as a revenue generating basis for the City. He
also stated that expanding the swap meet is a logical
alternative for increased revenue for the City, further that
by expanding the swap meet for one day would double the
revenue and this would require no investment on the part of
the City.
City Administrator responded stating that the revenue is
needed to fund serveral different projects on-going within
the City. He observed that in terms of no investment on the
swap meet, there are always investment in terms of fire
protection, paramedic services, street sweeping services or
maintenance as a result of parking. He further stated that
if the third option should be approved, the flexibility
within the Ordinance should make it easy to reduce fees in
the future, if needed.
Comments
J. Edwards,
III
Comments
L. Davidson
City Admin.
response
After discussion regarding the three options, it was moved Option #3
by Councilman Naranjo, seconded by Councilwoman Avila and adopted
carried by roll call to adopt option number three, which
would. enact an admission tax exempting theaters and
increasing the Swap Meet fee. Mayor Moses dissenting.
Councilman Naranjo offered an Ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA
1st rdg Ord
AMENDING SECTIONS 3.40.010 AND 3.40.030 OF THE AZUSA
Admission
MUNICIPAL CODE ESTABLISHING ADMISSIONS TAXES FOR CERTAIN
Taxes
EVENTS AND PROVIDING FOR AN ELECTION THEREON.
Moved by Councilman Naranjo, seconded by Councilwoman Avila
and unanimously carried by roll call to waive further
reading and introduce.
Councilwoman Avila offered an Urgency Ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA
Urg. Ord.
AMENDING SECTION 5.28.040 OF THE AZUSA MUNICIPAL CODE
#2379
INCREASING THE BUSINESS LICENSE TAX ON MOTION PICTURE
Inc bus tax
THEATERS AND PROVIDING FOR AN ELECTION THEREON.
Motion Pic
Moved by Councilwoman Avila, seconded by Councilman Latta
and carried by roll call to waive further reading, however,
since there was not a unanimous vote, the City Attorney
read the ordinance in full. He then called for adoption, as
an Urgency Ordinance because of time limitation imposed by
the County of Los Angeles for placement in the November
General Election ballot. He also call for simultaneous
action to introduce this ordinance.
Moved by Councilman Stemrich, seconded by Councilman Naranjo
that Ordinance be adopted. Ordinance passed and adopted as
an urgency ordinance and introduced as a regular ordinance
by the follow vote, to wit:
08/10/88 PAGE TWO
AYES: COUNCILMEMBERS: AVILA, STEMRICH, NARANJO, LATTA
NOES: COUNCILMEMBERS: MOSES
ABSENT: COUNCILMEMBERS: NONE
At this time the City Attorney stated that a resolution was Resolution
required in order to implement option 3, which changes the changing
ballot language for the admissions tax to ready ballot
language
"SHALL ORDINANCE NO. 2377 WHICH (1) INCREASES 11/8/88
THE ADMISSIONS TAX ON SWAP MEET VENDORS TO Election
' $2.50, (2) ESTABLISHES A .20 TAX ON ADMISSIONS
TO SWAP MEETS, AND (3) ESTABLISHES A TAX OF
10% OF THE ADMISSIONS PRICE ON ADMISSIONS TO
CERTAIN EVENTS AND PARKING, BE APPROVED?"
"SHALL ORDINANCE NO. 2379 WHICH INCREASES THE
BUSINESS LICENSE TAX OF MOTION PICTURE THEATERS
TO $11.65 PER YEAR PER SEAT OR SPACE, BE APPROVED?"
Councilman Naranjo offered a resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA Res. #8496
AMENDING RESOLUTIONS NO. 8477, 8478, 8479 AND 8480 RELATING Revision
TO THE REVISION OF CERTAIN BALLOT QUESTIONS AND THE ADDITION Res. Nos.
OF A BALLOT QUESTION FOR THE NOVEMBER, 1988, ELECTION. 8477, 8478,
8479 and
Moved by Councilman Naranjo, seconded by Councilman Stemrich 8480
to waive further reading and adopt. Resolution passed and
adopted by the following vote of the Council:
AYES: COUNCILMEMBERS: AVILA, STEMRICH, NARANJO, LATTA
NOES: COUNCILMEMBERS: MOSES
ABSENT: COUNCILMEMBERS: NONE
'loved by Councilman Latta, seconded by Councilman Naranjo Adjourn
and unanimously carried to adjourn.
CITY bLtRK /
NEXT RESOLUTION NO. 8497
NEXT ORDINANCE NO. 2380
08/10/88 PAGE THREE