Title
RESOLUTION NO. 2014-033 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (A) AUTHORIZING THE TRANSFER OF $8,017,453 IN WIRELESS TELEPHONE USERS TAX (T.U.T.) REVENUES FROM THE GENERAL FUND TO THE T.U.T. COMMON FUND AND APPROPRIATING FUNDS THEREFORE (B) APPROPRIATING $3,789,234 IN THE T.U.T. COMMON FUND FOR EXPENSES RELATED TO THE SETTLEMENT AGREEMENT IN THE MATTER OF CARLA VILLA, ET. AL., V. CITY OF CHULA VISTA (4/5THS VOTE REQUIRED)
Recommended Action
RECOMMENDED ACTION: Council adopt the resolution.
Body
SUMMARY
On April 12, 2013, the City approved a settlement agreement that resolved a class action lawsuit challenging the City's collection of Telephone Users' Taxes from wireless customers. The settlement received final approval of the court and became fully effective as of February 11, 2014. This action appropriates and transfers funds in order to implement the terms of the Settlement Agreement.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity, appropriating funds per settlement terms, for compliance with the California Environmental Quality Act (CEQA) and has determined that this activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
As you know, on April 12, 2013, the City entered into an agreement for the settlement of a class action lawsuit known as Carla Villa, et. al. v. City of Chula Vista. The lawsuit was filed by two Chula Vista residents on behalf of payers of the City's Telephone Users' Tax for wireless devices. The City disagrees with the lawsuit's claim that certain aspects of the tax are unlawful, but, because the issues were highly complex, and continued litigation would have been expensive, the City...
Click here for full text