city of Chula Vista

File #: 15-0469    Name: Prepaid Mobile UUT BOE Agreement
Type: Consent Item Status: Passed
In control: City Council
On agenda: 8/18/2015 Final action: 8/18/2015
Title: A. RESOLUTION NO. 2015-205 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE STATE BOARD OF EQUALIZATION FOR IMPLEMENTATION OF THE LOCAL PREPAID MOBILE TELEPHONY SERVICES COLLECTION ACT B. RESOLUTION NO. 2015-206 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE EXAMINATION OF PREPAID MOBILE TELEPHONY SERVICES SURCHARGE AND LOCAL CHARGE RECORDS
Indexes: 1. Operational Excellence
Code sections: 03.44 - Utility Users’ Tax
Attachments: 1. Item 12 - Attachment 1, 2. Item 12 - Attachment 2, 3. Item 12 - Resolution A, 4. Item 12 - Exhibit 1 to Resolution A, 5. Item 12 - Resolution B
Title
A. RESOLUTION NO. 2015-205 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE STATE BOARD OF EQUALIZATION FOR IMPLEMENTATION OF THE LOCAL PREPAID MOBILE TELEPHONY SERVICES COLLECTION ACT

B. RESOLUTION NO. 2015-206 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE EXAMINATION OF PREPAID MOBILE TELEPHONY SERVICES SURCHARGE AND LOCAL CHARGE RECORDS

Body
RECOMMENDED ACTION
Recommended Action
Council adopt the resolutions.

Body
SUMMARY
Chapter 3.44 of the Chula Vista Municipal Code authorizes the imposition of a Utility Users' Tax (UUT) on gas, electricity, and telecommunication services. A new statewide law addresses the collection of UUT on prepaid wireless telecommunication services. In order to secure these revenues, the City must approve and provide certain documents to the State Board of Equalization.

ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project", authorizing the City to enter into an agreement regarding collection of surcharges as defined under Section 15378(b)(4) of the State CEQA Guidelines because it is a fiscal activity that does not involve a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.

BOARD/COMMISSION RECOMMENDATION
Not Applicable.

DISCUSSION
The City of Chula Vista Utility Users' Tax (UUT) was adopted in 1970 as a means to help fund public services and capital improvement projects through the City's General Fund. The City receives UUT based on the usage of natural gas, electricity, and intrastate telecommunication services, including wireless telephone services, in the City. Current UUT rates are 0.00919 per therm of gas, 0.0025 per ki...

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