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City of San Leandro <br />Meeting Date: November 16, 2015 <br />Staff Report <br />Agenda Section:File Number:15-623 PUBLIC HEARINGS <br />Agenda Number:4.A. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:David Baum <br />Finance Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for Ordinance Amending Section 2-18-210 of the San Leandro <br />Municipal Code Relating to the Temporary Reduction of the Emergency <br />Communication System Access Tax (9-1-1) Percentage Rate of 3.3% for <br />Single Access Lines on Prepaid Wireless Services <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends City Council approve an ordinance amending the Emergency <br />Communication System Access Tax (9-1-1) that temporarily reduces the single access line tax <br />on prepaid wireless services to include the percentage rate of 3.3%, and this temporary rate <br />shall remain unchanged until January 1, 2020. <br />BACKGROUND AND ANALYSIS <br />On September 8, 2015, City Council approved the collection of UUT and 9-1-1 tax on prepaid <br />wireless services that will begin January 1, 2016. City Council also approved a contract with <br />the State Board of Equalization (BOE) in order to receive UUT and 9-1-1 tax imposed on <br />consumers of prepaid wireless phone service that is scheduled to sunset January 1, 2020 <br />(time needed for evaluation of program). <br />In accordance with the Local Prepaid Mobile Telephony Services Collection Act (AB 1717) a <br />collection process to collect the local access line charge on prepaid wireless will be effective <br />January 1, 2016. On the advice of the City’s consultant, MuniServices, LLC, the City needs to <br />temporarily reduce the local access line charge for prepaid wireless from $2.32 to $1.65 for <br />the period of January 1, 2016 to January 1, 2020. This temporary reduction of $1.65 per <br />single access line converts to a 3.3% rate that must be reflected in the San Leandro Municipal <br />Code. <br />The new rate is expected to generate $200,000 in annual 9-1-1 tax revenue on prepaid <br />wireless phone purchases. <br />Page 1 City of San Leandro Printed on 11/10/2015