Pasadena City Council Expected to Take First Steps Towards Collecting Measure I Sales Tax Tonight

Published : Monday, December 17, 2018 | 5:48 AM

The Pasadena City Council is expected to adopt a pair of resolutions Monday related to the new City sales tax resulting from the passage of Measure I, which voters approved during the general election on November 6.

Adopting these resolutions will be the first steps taken towards putting in place collecting the new 0.75 percent Transactions and Use Tax, whose proceeds will be used to maintain essential public services and shared with Pasadena Unified to support public schools.

The City stands to earn about $21 million yearly from the Measure I tax, according to Department of Finance estimates.

Measure J is an advisory measure which will allocate one-third of the new revenue, or about $7 million per year, to public schools under the Pasadena Unified School District.

Last week, the City Council voted to form an ad hoc joint committee comprised of selected Councilmembers and School Board members tasked with developing a plan within 60 days on how to implement Measure J.

One of the resolutions up for adoption Monday will authorize the City Manager to enter into an agreement with the California Department of Tax and Fee Administration (CDTFA) for the implementation and administration of the new tax.

A draft of the agreement shows the City will commit to pay the state agency a one-time fee of up to $175,000 for executing the administration and implementation work, and a quarterly fee based on the cost of collections.

The quarterly fee will be similar to what the City currently pays CDTFA for administering Pasadena’s one percent allocation of sales taxes, which in fiscal year 2018 was 1.15 percent.

If the City collects $21 million from Measure, this fee could amount to $241,000 a year, or about $60,250 per quarter.

The other resolution will designate the City Manager, along with other City officials such as the finance director and the City treasurer, to represent the City in examining records of the CDTFA related to the transaction and use taxes collected for Pasadena. A draft of the resolution shows the City controller and business development manager will also be designated as authorized representatives for the purpose of examining the tax records.

A finance department report indicated the City might also designate its consultant, Hinderliter, de Llamas and Associates, to be part of the authorized examining team, similar to an arrangement currently in place for the regular sales tax remittance.

Also on Monday, the City Council is expected to adopt an ordinance amending sections of Title 12 of the Pasadena Municipal Code, which relates to the regulation of sidewalk vendors.

The new ordinance will go through second reading Monday and is intended to revise the Municipal Code to align with Senate Bill 946, which creates new regulations on the sale of food items and other merchandise by sidewalk vendors.

The new state law, signed by Gov. Jerry Brown in September, prohibits local jurisdictions from imposing limitations on hours of operation any more restrictive than other businesses in the area, and prohibits criminal penalties and criminal prosecution for violations.

SB 946 takes effect on January 1, 2019.

Monday’s City Council meeting, the last for the year, begins with a closed session at 5:30 p.m. and proceeds to the public meeting at 6:30 p.m.

Meetings are held at the City Council chamber, Room S249 of the Pasadena City Hall.

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