10A Action 2016 1017 - Laserfiche WebLink

Home

39 In the past, the operators of certain hotels in the City challenged the ordinance levying the transient occupancy tax, on various grounds including that it was unconstitutionally vague and a violation of equal protection. In a decision filed on September 18, 2007, the California Court of Appeals for the Sixth District upheld the validity of the ordinance against such challenge. No appeal was filed. With the passage of Resolution No. 2016–105 on July 18, 2016, the City Council placed a measure on the November 8, 2016 ballot that would, if approved, increase the Transient Occupancy Tax from 10% to 14% to fund general services in the City. The City expects to generate an additional $200,000 of revenues per year from this increased tax. However, there can be no assurance that this measure will pass. Franchise Fee. Prior to the passage of State Bill AB 2987, the “Digital Infrastructure and Video Competition Act of 2006,” Federal and State laws allowed cities to grant franchises to cable companies to use the public right–of–way to install and provide video service. Under the current franchise agreement, the cable company pays San Leandro an annual franchise fee of 5% of gross revenues. In addition, the City of San Leandro also receives revenue from Electric & Gas Franchises, as well as Refuse & Recycling. Electric/Gas franchise fees are based on gross receipts for the sale of electricity or gas within the City, and is the greater of these two calculations: 1. Electric or Gas Franchise Ordinance: 2% or gross receipts attributable to miles of line operated; or 2. 1937 Act Computations: gross receipts within the City multiplied by 1%. Refuse & Recycling franchise fee calculations include complex calculations based on a variety of basis such as per ton or percent of gross receipts between 10– 12%. Most of the fees are adjusted annually by CPI.