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Emergency Communication System Access Fee -July 21, 2008 This approach, if approved by the voters removes any legal threat to an important City revenue source, protects the City's ability to continue to deliver critical city services and imposes the tax fairly across all communication technologies. It should be noted that if the measure were to fail, then the existing ordinance would continue in effect, subject to the various legal and technological issues discussed earlier. Proposed Ballot Question: Shall the City of San Leandro repeal its existing 9-1-1-Emergency Communications System Access Fee Ordinance and enact an Emergency Communications System Access Tax to fund enhanced 9-1-1 emergency services to San Leandro residents, with no increase in rates? Summary of Proposed Emergency Communication System Access Tax Measure The proposed Measure, which is attached for Council's review, would repeal, Chapter 2-16 Emergency Communication System Access Fee and enact a new Chapter to read Emergency Communication System Access Tax". In addition, the Definitions section would be updated to recognize all telephone technologies, including Internet protocol telephone services (VoIP) and other emerging technologies that directly access the City's 911 system, and thus, derive the benefit of this service. The following is a summary of the proposed ordinance: • The basic provisions City's 911 Fee, which will become a tax if approved, will remain unchanged. • If the new ordinance fails, then the current 911 Fee continues in place. • The proposed ordinance includes a modern, functional definition of telecommunications services that is technology neutral, treating taxpayers the same regardless of the technology used, e.g. voice over Internet, (VoIP), IP-TV and private communication services to access the City's 911 system. • Does not change exemptions for low-income senior citizens and disabled persons. Financial Impact-Revenue Neutral As noted earlier, the proposed ordinance does not change the current rate structure and for this reason is revenue neutral. Staff would point out, however, that the updated ordinance will be able to tax emerging telephone technologies and hence there maybe some growth in overall tax revenues in the short term. However, staff does not believe that the overall growth trend or current volume of 911 calls will change as a result of the updated ordinance. More likely, over time the number of taxed calls will stabilize as a 911 call made under "old technology" will simply be replaced by a call using "new technology". Consequently, if the new ordinance is not approved it is likely that current 911 revenues will decline over time; even though call volume remains the same.