08-19-1996 V� ,tine Omer
Councilman Hays
Councilman Mitchum
Mayor Hayman
Councilman Hatfield
Councilwoman Martin
AGENDA
CITY COUNCIL OF EDGEWATER
AUGUST 19, 1996
7:00 p.m.
COMMUNITY CENTER
1. CALL TO ORDER, ROLL CALL, INVOCATION, PLEDGE OF
ALLEnIANCE
2. ARPROVAL OF MINUTES
A. Regular meeting of August 5, 1996
3. CITIZEN COMMENTS REGARDING AGENDA ITEMS ONLY
(Other than public hearings)
4. CITY COUNCIL REPORTS
5. PUBLIC HEARINGS, ORDINANCES AND RESOLUTIONS
A. First reading Ord. 96 -0 -07 Updating and
amending Chapter 16 of Code of Ordinances in
reference to public service taxes authorized
by Section 166.231, Fla. Statutes
6. CONSENT AGENDA
Change Order and project closeout for Cory
Estates distribution system
B. Satisfaction of special assessment (paving)
lien
C. Approve transfer of $1,000.00 from Special Law
Enforcement Trust Fund into General Fund
7. OTHER BUSINESS
A. CityTel, Inc. Letter of Authorization re:
communications tower
8. GENERAL CITIZEN COMMENTS /CORRESPONDENCE
9. OFFICER REPORTS
10. ADJOURN.
NOTE: Due to the Labor Day holiday, the September 2nd regular
meeting has been cancelled. The next regular meeting is scheduled
for Monday, September 16, 1996. All items for inclusion on the
September 16th agenda must be received by the City Manager's.office
no later than 4:30 p.m. Monday, September 9, 1996.
Pursuant to Chapter 286, F.S., if an individual decides to appeal any decision
made with respect to any matter considered at a meeting or hearing, that
individual will need a record of the proceedings and will need to insure that a
verbatim record of the proceedings is made.
In accordance with the Americans with Disabilities Act, persons needing
assistance to participate in any of these proceedings should contact City Clerk
Susan Wadsworth, 904- 424 -2407, prior to the meeting.
J _ fl .
AGENDA REQUEST
C.A. NO.: 96 -109
Date: August 12, 1996
Nifty/
PUBLIC
HEARING RESOLUTION ORDINANCE 08/19/96
OTHER
CONSENT BUSINESS CORRESPONDENCE
ITEM DESCRIPTION /SUBJECT:
First Reading Ordinance No. 96 -0 -07 Updating and Amending Chapter 16 of
the Code of Ordinances in Reference to Public Service Taxes Authorized
by Section 166.231, Florida Statutes
("
Attached is a copy of proposed Ordinance No. •. -0 -07 hich the City
Manager briefed the Council on during the budget • op on August 12,
1996. This ordinance updates and amends Chapter 16 of the Code of
Ordinances in reference to public service taxes authorized by Section
166.231, Florida Statutes. The major change proposed is the selection
of an alternative to the current 10% taxation of local telephone and
err telegraph services. The proposed alternative would tax
telecommunication services as defined in the ordinance at a rate of 7 %.
Although the percentage of the tax would be decreased, because of the
broader application of the tax, the Finance Director has estimated that
the City would see an 80% increase in these tax revenues. Some cities
have seen a 100% increase in revenues. Attached is an Overview of the
Public Service Tax on Telecommunication Services from the Florida
League of Cities' Guide on this topic
Section 166.231, Florida Statutes, authorizes municipalities to levy
public service taxes on the purchase of electricity, metered or bottled
gas, water service, telecommunication services and fuel oil. The City
has been exercising all of its taxing options except in reference to
water services. In addition to the proposed revision of Chapter 16 to
implement the alternative telecommunication tax option, Staff requests
that the Council consider the authorized tax on water services.
Pursuant to Section 166.231(1)(a), Florida Statutes, a maximum tax levy
of 10% of the purchase price of the service is authorized. Based on
this year's budgeted water revenues, the Finance Director has estimated
that $193,000 would have been realized this fiscal year if the maximum
10% tax had been in place.
The other changes to Chapter 16 are proposed to provide consistency
with Section 166.231, Florida Statutes.
RECOMMENDATION /CONCLUSION:
Staff recommends that the Council consider approval of Ordinance No. 96-
0 -07 on first reading.
FUNDS AVAILABLE: (ACCOUNT NUMBER)
(SPECIFY IF BUDGET AMENDMENT IS REQUIRED)
irrr
PREVIOUS AGENDA ITEM: YES NO XX
DATE: AGENDA ITEM NO.
Respectfully submitted, Concurrence:
'AL.dlil.A t.
Kri-ta A. Storey GeorgOE. McMahon
City Attorney City Manager
1
Ferdinand Munoz
Finance Director
KAS
'r✓ Attachments
OVERVIEW OF THE PUBLIC SERVICE TAX
e l . . -
ON TELECOMMUNICATION SERVICES
Options
The Municipal Public Service Tax may be levied by a municipality under two different op-
tions. Section 166.231(9), Florida Statutes (F.S.), provides for Option 1, a 10 percent tax, or Option 2,
p a 7 percent tax. Both options and the various considerations of each are discussed below. A copy of s.
166.231 and s. 203.012, Florida Statutes, can be found in Appendix A.
Option 1:
1 .
The first option (10% Option) is a tax of up to 10 percent on local monthly recurring service
charges as defined in s. 203.012(3), F.S. This option only taxes local telephone service, and specifi-
c ally excludes public telephone charges collected on -site and customer access charges. A sample
ordinance can be found in Appendis L.
Option 2:
The second option (7% Option) is a tax of up to 7 percent on a broad range of telecommunic-
t =
tion services which originate and terminate in Florida. Section 203.012(5), F.S.,' defines telecommu-
nications service as including local service, toll service, private communication service, teletype -
441 ,,
writer, and computer exchange service. It also includes several other services which may only be
taxed on the monthly recurring portion. These include cellular service, beeper and pager service, and
any mobile one -way or two -way radio service.
' All charges under the 7% Option must be intrastate (service beginning and ending within the
state of Florida) and the criteria of being "recurring" depends upon the type of service. Charges for
equipment rental are exempt under the 7% Option. A sample ordinance can be found in Appendix K.
,3 Considerations
N
fr; The 7% Option places a tax on a much broader range of services than the/0% Option. Intrastate
long distance, fax service, beeper /pager service, cellular service, computer exchange service, and
mobile radio service are all taxable under the 7% Option, but not the 10% Option. In all cases where
a taxable service is being provided, the final reselier of a telecommunication service is required to
collect the tax from the final user of the service. For example, when a hotel (or hospital, retirement
home, dormatory, etc.) bill its customers for phone calls made (local and intrastate long distance) or
g daily /monthly phone service, such charges are taxable to the guest/resident. While these types of
charges are taxable under the 7% Option, they are not taxable under the 10% Option, because they are
fir.► not defined as local telephone service recurring monthly charges. Such charges under this example are
0 defined as "private communication service" pursuant to S. 203.012(4), F.S.
It has been the experience of most municipalities and charter counties that tax revenues in
creased significantly after they switched from the 10% Option to the 7% Option. Your local telephone
(lb company may be willing to conduct an analysis for your jurisdiction should you decide to consider
converting from the 10% Option to the 7% Option. This analysis may or may not show a clear advan-
tage from increased revenues. Their analysis will generally consider only their company's taxable
7
revenues and those revenues which are billed through them, provided those companies grant them
permission to give out this information. Even if all companies grant their permission, the data they
provide will still be only a portion of the tax projections that a jurisdiction could expect to receive �I
from this tax. Some local exchange companies may not be eager to conduct this analysis, especially if J 4*
the jurisdiction is not levying the public service tax or telephone franchise fee. In order for them to
)roperly conduct the analysis, it would be necessary for their computerized customer records to be
coded to your jurisdiction.
To accurately project the revenues under this option, the revenue from the phone company
must be used only as a beginning. An estimate should be made of the potential revenues derived from
taxing intrastate long distance, cellular, beeper /pager service, prepaid phone card service, faxes, pri-
vate communication services, and computer exchange service (please refer to the list of taxable ser-
vices on page 9). These services would all provide revenues at 7 percent, but no revenues under the
10% Option. Soon after the 7% Option became law in 1985, cities and charter counties who con-
verted from thel0 percent to the 7 percent tax generally found a 15 to 25 percent increase in revenues
to be common. More recently, though, several municipalities have realized increases of up to 100
percent and higher after the conversion, due to the substantial growth in telecommunication services.
Lower income citizens generally fare better with the 7% Option, because the rate on basic
local phone service is at 7 percent instead of 10 percent. Likewise, those citizens who make many
long distance calls, use fax service, have PC modems, cellular phones or pagers, usually are better
able to afford the tax. Thus, the 7% Option taxes more heavily those who are able to pay, and results
in less tax for those on low or fixed incomes who rely only on local telephone service.
Because the 7% Option permits taxation of many more services than the 10% Option, a mu-
nicipality will obviously have many more tax remitters. This will result in more administrative work
4, identify taxable service providers and process tax payments.
Any municipality or charter county taxing under the 7% Option should be prepared to provide
a street index of all street addresses within your boundaries to all service providers who request such
a listing. This index must be updated as annexations or boundary changes occur. Section 166.231(9)(d.),
Florida Statutes, only compels telecommunication providers to charge the tax to service and billing
addresses contained within the listing.
When notifying companies of your annexation changes, take the time to identify the proper
individuals who need to be noticed of the change. Companies, such as GTE, ask that their Govern -
ment Affairs Department be notified. Some of these companies are very large and when these notices
are sent to the wrong area of the company, the chance that your notice fails to go to the correct
department become much greater. The primary reason for such notices is to ensure that your city or
charter county receives all utility taxes (and franchise fees) due to them. Although not required by law,
the street index guide is just as necessary for the 10% option when newly enacted or when a new area
is annexed.
If your jurisdiction does not maintain a listing of streets and addresses which are within your
boundaries, such a list will need to be prepared in order for these companies to correctly code their
customers for collection of your tax. The street listings should attempt to use street addresses that are
consistent with those used the U.S. Post Office. If the post office designates a street as North Mitchell,
'ie listing should not provide the name with an abbreviation of N. Mitchell. This will help reduce the
chance of error for the telecommunications companies. There are several potential methods to con-
struct a street index. The easiest is to pull it out of your government's Geographical Information
System (GIS). If you don't have access to a GIS, you may be able to retrieve the data from your 911
system, or from the county's supervisor of elections office. The supervisor should have this data since
they maintain this type of information for voting purposes. Should all else fail, one could do it the
manual way. That is, first identify all roads and streets that fall totally within the city limits, then list
those roads that cross the city limits line. On those roads where a portion of the addresses are not
8
totally within your jurisdictional boundaries, be sure to indicate which addresses are within the city.
Do not forget to identify any Post Office boxes and drawers that are inside your city limits - telecom-
munication bills addressed to these addresses (P.O. Boxes /Drawers) are taxable provided the com-
pany does not know the service location address. Please refer to appendix B for an example of an
address listing. As a caution, do not completely rely on address data obtained from outside sources;
always verify the data. Remember, every address identified as being within your jurisdictional bound-
aries is a revenue source...not just for today, but for every month into the future.
It should be noted that as these address listings are updated, the revised listing or report should
have a prominent date which allows the old version to be easily distinguished from the new one. And,
to increase compliance, new addresses in the body of the address listing should be highlighted or
flagged in some way to facilitate the telecommunication service provider's posting to their customer
data base files.
- To ensure the accuracy of the listing, you should send a listing to your bordering jurisdictions
(if applicable) to settle any potential disputes. Due to potential disputes with bordering jurisdictions
that may occur from a tax compliance audit, the municipalities and applicable charter counties should
develop an interlocal settlement agreement to facilitate recovering the tax and/or franchise fees.
Finally, S. 166.231(9)(c), F.S., requires that a municipality (or charter county) notify all com-
panies responsible for collecting the tax at least 120 days from when the tax is to be in effect. This 120
days notice would be applicable on initial implementaiton of the tax, as well as, prior to changing
from one option to the other. The timetable for the 120 day notice must begin following final passage
of the implementing ordinance. The notice is required to allow these companies ample time to make
data processing changes in order to bill and collect the tax. The statute also stipulates that once a
jurisdiction imposes one of the two options, it must remain in that option for at least 12 months.
(' ' Summary
10% Option
1
* This option is a tax of up to 10% on monthly recurring customer service charges for
local service.
i1
* It requires less administrative and compliance effort by the municipality or charter
county because there are far fewer remitters and although not required by law the street
index guide requirements are necessary for this option.
,
4
* A 120 day notice is required to the local telephone company(s) prior to implementa-
tion, and once the option is in place, the jurisdiction is required to retain the option for
i at least 12 months.
7% Option - .
* The 7% Option is a tax of up to 7% on telecommunications service originating and
`"''' terminating within the State of Florida. Telecommunication service includes local '
intrastate long _distance service, fax service, computer exchange service; and recurring 4
monthly customer service charges for cellular service, private communication service,
beeper /pager service and mobile radio service.
9
* (.;The 7% Option is a much:broader.tax :and generally results in greater.rey.enuesforthe
jurisdiction =
* The 7 % Option can be expected to provide a lower tax burden for lower or fixed in- � g
come residents because it taxes the extra services generally utilized by those with a
greater ability to pay.
lofty
* A 120 day notice is required to all service providers prior to implementation, and once
the option is in place, the jurisdiction is required to retain the option for at least 12
months.
(1)
bows
10
THE 7% OPTION - TAXABLE AND NON - TAXABLE
f TELECOMMUNICATION SERVICES
As stated earlier, telecommunication services taxable under the 7% Option are quite broad and
are growing daily. This includes the creation of new types of services which were only imagined
'4111"' yesterday, or may be taxable services in the very near future. At this time, taxable sales include, but
are not limited to the following services:
What is Taxable:
-Local telephone service
Any service provided in connection with local telephone service, such as:
Information/directory assistance charges
Operator assistance charges
Message service charges
Call- forwarding, call- waiting, call - block, etc.
Toll telephone service, such as:
All intrastate long distance charges
WATS
Pre -paid long distance calling cards (when call orginates within the taxing jurisdiction)
Public telephone charges when not collected on -site (coin box)
Itemized telecommunication services (local call, intrastate long distance, access charge to 1-
800 or credit card call, fax, etc.) charged to anyone by any entity such as a (.4111w° adult adult congregate living facility, dormitory, hotel/motel, office complex, etc.
Telegram and telegraph services
Private communication service
By -pass telephone service
Shared tenant service
Mobile communication service (monthly recurring charges only) for:
- _Cellular /PCS telephone charges
Satellite phones
Beepers
Pagers
Specialized mobile radio services (such as repeater service)
T- - ' • ter service
Facsimile servizu
Computer exchange service (There is a strong possibility that services which provide E -mail,
"chat," and access to the interne may be taxable. The League will advise when this is
confirmed.)
Important note: e specific taxable services listed above are not all - inclusive. When a question
`fir arises regarding a particular service, the definition of "telecommunication service" found in s.
203.012, F.S., should be consulted.=
11
What is Not Taxable:
The law specifically exempts certain entities, charges, and services from the 7% Option, and
these are as follows: • ''
United States Government
State of Florida
City and County Governments
Public bodies defined in s. 1.01(8), Florida Statutes
Housing authorities
Recognized churches (when used exclusively for church purposes)
Purchaser of telecommunication services for use in the conduct of a telecommunication ser-
vice for hire or otherwise for resale (the tax is due when the service is sold by the
reseller)
Public telephone charges collected on -site
Access charges
Customer access line charges paid to a local telephone company
Variable usage charges for cellular /PCS mobile telephone, beeper, pager or specialized mobile
radio services (excluding long distance charges)
Services or equipment incidental to cellular /PCS mobile telephone, beeper, pager, or special-
ized mobile radio service for which charges are separately stated/itemized on the bill,
such as:
Equipment sales
Equipment rental
Equipment maintenance
Noe
Foreign exchange service
Private line service, except when used or sold as a substitute for any telephone company
switched service or dedicated facility by which a telephone company provides a com-
munication path
ENFORCEMENT AND ADMINISTRATION
Policies and P edures
Policies in the admi • tration of the telecommunication tax should : - consistent with the
public service tax ordinance adopt by the city in accordance with the prov' :'ons of Section 166.231(9),
Florida Statutes. Please refer to Appe : 'x C for examples of policie . d procedures.
Questions that need to be addressed in designs : and es ishing policies and procedures are:
1. How to inform the taxpayers /col = ors?
2. How can your jurisdiction r- . those company that should comply?
3. How to encourage co • ance with the tax ordinanc .
4. What type of guid.. ce is needed from your jurisdiction?
5. What inform. •.n/materials is needed from your jurisdiction?
6. What ty. - of monitoring or compliance procedures does your juris. • ion need to es-
tab • .
7. • at type of guidance is required for your employees to properly administer • tax?
12
ORDINANCE NO. 96-0 -07
AN ORDINANCE OF THE CITY COUNCIL OF EDGEWATER, FLORIDA,
AMENDING CHAPTER 16 (TAXATION) OF THE CODE OF ORDINANCES,
CITY OF EDGEWATER, FLORIDA; BY DELETING EXISTING SECTIONS
16 (ELECTRICITY, METERED OR BOTTLED GAS, FUEL OIL,
LOCAL TELEPHONE AND TELEGRAPH TAX - LEVY; EXEMPTION OF
POLITICAL SUBDIVISIONS), SECTION 16 -2 (SAME - COLLECTION
AND PAYMENT BY UTILITY AND PURCHASES), SECTION 16 -3 (SAME
- BASIS AND COMPUTATION), SECTION 16 -4 (SAME - MONTHLY
REPORTS AND PAYMENT), SECTION 16 -5 (SAME - RECORDS,
INSPECTION) AND SECTION 16-6 (SAME - DISPOSITION OF
FUNDS) AND CREATING NEW SECTIONS 16 -1 (DEFINITIONS),
SECTION 16 -2 (TAX IMPOSED; RATE), SECTION 16 -3
(COLLECTION; LIABILITY OF SELLER), SECTION 16-4 (RECORDS
OF PURCHASES; INSPECTION), SECTION 16-5 (EXEMPTIONS),
SECTION 16 -6 (COMPUTATION OF TAX WHEN PAID MONTHLY AND
QUARTER - ANNUALLY), SECTION 16 -7 (SCOPE OF TAX) AND
SECTION 16 -8 (OCCUPATIONAL LICENSE); PROVIDING FOR
CONFLICTING PROVISIONS, SEVERABILITY AND APPLICABILITY;
PROVIDING FOR CODIFICATION, AN EFFECTIVE DATE AND
ADOPTION.
WHEREAS, the City Council of the City of Edgewater, Florida,
`,,, has determined that it is in the best interests of the citizens of
Edgewater to update Chapter 16 of the Code of Ordinances in
reference to the public service taxing options authorized by
Section 166.231, Florida Statutes.
NOW, THEREFORE, BE IT ENACTED by the People of the City of
Edgewater, Florida:
PART A. AMENDMENT OF CHAPTER 16 (TAXATION) OF THE CODE OF
ORDINANCES, CITY OF EDGEWATER, FLORIDA.
Chapter 16 is amended to read as follows:
Sec. 16 - 1. Electricity, metered or bottled gao, fuel oil,
(a) Thcrc is hereby levied by the city on each purchase
within thc city, of electricity, metered or bottled gas (natural,
liquefied petroleum or manufactured), fuel oil and local telephone
and telegraph service a tax equal to ten (10) per cent of each
purchaser of ouch utility service, which tam shall in every case be
collected from thc purchaser and paid by such purchaser for thc uoc
of the city to the seller of such u _- -- - -- =
for ouch utility service, but not leas oftcn than monthly.
(b) The Unitcd States of America, thc State of Florida, and
Now
Struck through passages are deleted.
Underlined passages are added.
96 -0 -07 1
political subdivisions and thc agencies thcrcof arc hcrcby cxcmptcd
from thc payment of such taxes.
• . - _ - -_- -_ - -- _ - -- - -
for church purposes arc exempt.
Soc. 16 - 2. Same - Collection and payment by utility and
(a) It shall bc thc duty of every seller of electricity, fucl
oil, metered or botticd gas (natural, liqucficd pctrolcum or
rcopcct of which tax is hcrcby lcvicd to collcct from the purchaocr
for thc use of thc city the tax hcrcby lcvicd, Such collection to
bc made at thc timc of collecting thc selling pricc chargcd in
conncction with each transaction, and to report and pay over
monthly to thc city clerk of thc city, all such taxes. -
(b) It shall bc unlawful for any scllcr to collect thc price
gas (natural, liqucficd petroleum or manufactured), and local
hcrcby lcvicd without at thc Dame timc collccting thc tax hcrcby
lcvicd in rcopcct of such purchaoco.
collccting thc pricc of any such purchase, shall bc liable to the
said city for thc amount of ouch tax, in like manner as if thc name
-- _ - - =- _ - = - cellcr thc tax hcrcby imposed, as
thc right to immediately discontinue furthcr scrvicc to such
purchaocr until thc tax has been paid in full.
(d) Any purchaser willfully failing or rcfuaing to pay such
officcr, agcnt or employee of any seller, violating thc provisions
hcrcof, shall bc oubjcct to the penalties providcd by section 1 -8.
Soo. 16 - 3. Sams - Bacio and computation.
(a) The tax hcrcby lcvicd shall apply to all purchaoco of
%r Struck through passages are deleted.
Underlined passages are added.
96 -0 -07 2
electricity, fucl oil, mctcrcd or botticd gas (natural, liqucficd
""r" petrolcum or manufacturcd), and local tcicphonc and tcicgraph
mcaouring dcvicc, or othcrwioc, to premises located in thc city.
(b) In all caoco whcrc the ocllcr of cicctricity, fucl oil,
mctcrcd or botticd gao (natural, liquefied pctrolcum or
manufacturcd), and local tcicphonc and tcicgraph service, collects
- : ' -- -- -_ - - = shorter period°, thc tax hcrcby
lcvicd may bc computed on thc aggregate amount of purchase° by each
concumcr during cuch period, providcd that thc amount of tax to be
collcctcd ohall be thc ncarcot wholc cent to thc amount computed.
Soa. 16 - 4. Sams - Monthly roporta and payment.
The tax hcrcby impoocd ohall bc paid by thc ocllcr to thc city
cicrk monthly in thc manner following: on or before thc fifteenth
day of each month, thc acllcr shall rcport, in writing, under oath,
to thc city cicrk, an itemised liot of all purchasers of
cicctricity, cablc tcicvioion ° ccvicc, mctcrcd or botticd gap
(natural, liquefied pctrolcum or manufactured) , and local telephone
and tcicgraph scrvicc, as the case may bc, in thc city, giving in
thc preceding month, together with all amounts paid for
cicctricity, cable tcicvioion service, mctcrcd or bottled gao
400' (natural, liqucficd petroleum or manufactured), and local tcicphonc
and tcicgraph scrvicc, uocd during thc preceding months, which wcre
each ouch case pay to thc city clerk thc amount shown to bc duc the
city by °aid rcport, and thc city clerk ohall iccuc a receipt
thcrcfor.
Soo. 16 - 5. Samo - r000rdo; inapootion.
Each ocllcr of cicctricity, cable television scrvicc, mctcrcd
or botticd gas (natural, liqucficd pctrolcum or manufactured), and
r.r local tcicphonc and tcicgraph service, in respect to purchases on
Struck through passages are deleted.
Underlined passages are added.
96 -0 -07 3
all purchases within thc city of such electricity, cable television
°err service, metered or bottled gas (natural, liquefied petroleum or
manufactured), and local telephone and telegraph service, which
records shall chow thc price charged upon each purchase, thc date
thcrcof, and thc date of paymcnt thcrcof, and shall at all
reasonable times be open for inspection by thc duly authorized
agents of said city, who shall have authority to makc ouch
Sco. 16 - 6. Same - Disposition of funds.
All moneys accruing from thc tax hereby levied shall be
deposited in thc city treasury by thc city clerk in thc same manner
as other taxes, and thc city council is hereby authorized to
Now
appropriate and expend said taxes for any municipal purposes.
16 -1. Definitions.
16 -2. Tax imposed; rate.
16 -3. Collection; liability of seller
16 -4. Records of purchases; inspection.
16 -5. Exemptions.
16 -6. Computation of tax when paid monthly and quarter -
annually.
16 -7. Scope of tax.
16 -8. Occupational license.
Sec. 16 - 1. Definitions.
As used in this Chapter:
Electronic transfer means the use of the Automated Clearing
House (the "ACH "), or other electronic transfer system approved on
New
a case by case basis, to send the taxes collected directly from the
seller's bank to the bank designated by the city to receive such
transfer.
Interstate, as applied to telecommunication services, means
originating in the State of Florida but not terminating in this
state, or terminating in this state but not originating in this
state.
Local telephone service means:
Now (a) The access to a local telephone system, and the privilege
Struck through passages are deleted.
Underlined passages are added.
96 -0 -07 4
of telephonic - quality communication with substantially all persons
having telephone or radio telephone stations constituting a part of
such local telephone system; or
(b) Any facility or service provided in connection with a
service described in paragraph (a).
Local telephone service does not include any service which is a
toll telephone service, private communication service, cellular
mobile telephone or telecommunication service, specialized mobile
radio, or pagers and paging service, including but not limited to
beepers and any other form of mobile and portable one -way or two -
way communication, or teletypewriter or computer exchange service.
Itme
Private communication service means:
(a) A communication service furnished to a subscriber or user
that entitles the subscriber or user to exclusive or priority use
of a communication channel or groups of channels, or to the use of
an intercommunication system for the subscriber's stations,
regardless of whether such channel, groups of channels, or
intercommunication system may be connected through switching with
local telephone service, teletypewriter or computer exchange
service, or toll telephone service;
(b) Switching capacity, extension lines, and stations, or
Nifty other associated services which are provided in connection with,
and which are necessary or unique to the use of channels or systems
described in paragraph (a); or
(c) The channel mileage which connects a telephone station
located outside a local telephone system area with a central office
in such local telephone system.
Remit, remittance and remitting, for purposes of the tax
imposed by this Chapter, mean the sending by the seller and the
receipt by the City of all taxes levied and collected pursuant to
this Chapter.
Now
Struck through passages are deleted.
Underlined passages are added.
96 -0 -07 5
Seller means a person, firm, corporation, or other legal
Now entity who sells directly to the consumer.
Telecommunication service means:
(a) Local telephone service, toll telephone service, telegram
or telegraph service, teletypewriter or computer exchange service,
or private communication service; or
(b) Cellular mobile telephone or telecommunication service,
specialized mobile radio, and pagers and paging service, including
but not limited to "beepers" and any other form of mobile and
portable one -way or two -way communication, but does not include
services or equipment incidental to telecommunication services
Now
enumerated in this paragraph such as maintenance of customer
premises equipment, whether owned by the customer or not, or
equipment sales or rental for which charges are separately stated,
itemized, or described on the bill, invoice, or other tangible
evidence of the provision of such service.
Teletypewriter or computer exchange service means the access
from a teletypewriter, telephone, computer, or other data station
of which such station is a part, and the privilege of
intercommunication by such station with substantially all persons
Now having teletypewriter, telephone, computer, or other data stations
constituting a part of the same teletypewriter or computer exchange
system, to which the subscriber or user is entitled upon payment of
a charge or charges, whether such charge or charges are determined
as a flat periodic amount, on the basis of distance and elapsed
transmission time, or some other method. Teletypewriter or
computer exchange service does not include local telephone service
or toll telephone service.
Toll telephone service means:
(a) A telephonic - quality communication for which there is a
Nor
toll charge which varies in amount with the distance and elapsed
Struck through passages are deleted.
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96 -0 -07 6
transmission time of each individual communication; or
`'o" (b) A service which entitles the subscriber or user, upon the
payment of a periodic charge which is determined as a flat amount
or upon the basis of total elapsed transmission time, to the
privilege of an unlimited number of telephonic communications to or
from all or a substantial portion of the persons having telephone
or radio telephone stations in a specified area which is outside
the local telephone system area in which the station provided with
this service is located.
Toll telephone service includes interstate and intrastate wide -area
telephone service charges.
Sec. 16 -2. Tax imposed; rate.
Now
(a) The tax previously imposed pursuant to former Section
16 -1 of the Code of Ordinances on each purchase of electricity and
metered or bottled gas (natural liquefied petroleum gas or
manufactured) in the corporate limits of the city in the amount of
ten percent (10 %) of the pay 'ents received by the seller of the
service from the purchaser for purchase of the service shall
continue in effect.
(b) Effective O•tob: 1, 19`6 there is hereby imposed on
each purchase of water vi th: corporate limits of the city
a tax in the amount • ten percent (10%) of the payments received
Nifty by the seller of the service from the purchaser for the purchase of
the service.
(c) Effective February 1, 1997, a tax is hereby imposed and
levied upon the purchase of telephone communication service which
originates and terminates in the State of Florida, at a rate of
seven percent (7 %) of the total amount charged for any
telecommunication service provided within the city or, if the
location of the telecommunication service provided cannot be
determined, the total amount billed for such telecommunication
service to a telephone or telephone number, a telecommunication
number or device, or customer's billing address located within the
Nor
municipality excluding public telephone charges collected on site,
Struck through passages are deleted.
Underlined passages are added.
96 -0 -07 7
charges for any foreign exchange service or any private line
N ""r service except when such services are used or sold as a substitute
for any telephone company switched service or dedicated facility by
which a telephone company provides a communication path, access
charges, and any customer access line charges paid to a local
telephone company. Telecommunication service as defined in Section
203.012(5)(b), Florida Statutes, shall be taxed only on the monthly
recurring customer service charges excluding variable usage
charges. The tax previously imposed by former Section 16 -1 of the
Code of Ordinances on purchases of local telephone and telegraph
services in the amount of ten percent (10 %) shall remain in effect
through January 31, 1997.
Noolow
(d) The tax previously imposed pursuant to former Section 16-
1 of the Code of Ordinances on fuel oil in the amount of four cents
($0.04) per gallon shall remain in effect.
Sec. 16 -3. Collection; liability of seller
(a) Pursuant to Section 166.231, Florida Statutes, it shall
be the duty of every seller of electricity, metered or bottled gas
(natural liquefied petroleum gas or manufactured), water service,
telecommunications service or fuel oil to collect from the
purchaser at the time of payment for such service any tax imposed
and levied pursuant to the provisions of this Chapter. The seller
Nor
shall then report and pay over to the Finance Director of the City
on or before the twentieth day of each calendar month all such
taxes imposed and levied pursuant to the Chapter for the preceding
calendar month, whether or not such taxes were collected from the
purchaser by the seller. In the event the twentieth day falls on
a Saturday, Sunday or holiday, the time shall be extended to the
next business day following the Saturday, Sunday or holiday. The
date of receipt of such taxes by the City will be the date post-
marked by the U. S. Postal Service, the day received by the Finance
Director or if by electronic transfer, the date received by the
bank as indicated on the bank statement. The Finance Director is
low
authorized to prescribe the forms on which the reports shall be
Struck through passages are deleted.
Underlined passages are added.
96 -0 -07 8
made.
low (b) It shall be unlawful for a seller to collect the purchase
price of electricity, metered or bottled gas, water service,
telecommunications service or fuel oil without collecting,
reporting, and paying over to the City the tax imposed and levied
pursuant to this Chapter.
(c) If a seller fails to pay the tax within the time
required, there shall be added to the tax a penalty in the amount
of ten percent (10 %) for the first thirty days or fraction thereof,
plus an additional five percent (5 %) for each additional thirty
days or fraction thereof during the time which the failure
continues.
Nor
(d) For the purpose of compensating the seller of
telecommunications service, the seller shall be allowed one percent
(1 %) of the amount of the tax collected and due to the city in the
form of a deduction from the amount collected for remittance. The
deduction shall be allowed as compensation for the keeping of
records and for the collection and remittance of the tax.
Sec. 16 -4. Records of purchases; inspection.
(a) Each seller of electricity, metered or bottled gas.
(natural, liquefied, petroleum gas or manufactured, water service,
telecommunication service or fuel oil shall keep complete records
vrr
showing all purchases in the City of the service, which records
shall show the purchase price, the date of purchase, and the date
of payment. The records shall be kept open for inspection by the
duly authorized agents of the City during business hours on all
business days. The duly authorized agents of the City shall have
the right, power and authority to audit, examine, and make
transcripts of any and all business and /or sales records including
those records stored on computer software or otherwise kept by
electronic means, in any way pertaining to the sale, within the
city limits during such times as they may desire.
,fir, (b) Sellers of telecommunication services taxable pursuant to
the provisions of this Chapter shall provide to the City upon sixty_
Struck through passages are deleted.
Underlined passages are added.
96 -0 -07 9
(60) days notice, access to all applicable records for such
telecommunications service. However, any information received by
the City in connection with such audit is confidential and exempt
from the provisions of Section 119.07(1), Florida Statutes.
(c) Records not located within the municipal limits of the
City must be furnished by the seller to the City within fourteen
(14) days of written demand except for telecommunication service
which must be given sixty (60) days notice. Should the seller
fail to comply with the written demand, the City may authorize an
agent or officer of the City to conduct an audit at the location
where the records are maintained, at the seller's expense.
Sec. 16 - 5. Exemptions.
The following are exempt from payment of the tax levied and
imposed pursuant to this Chapter:
(a) The United States, the State of Florida and political
subdivisions and agencies thereof.
(b) Purchases by any recognized church for use exclusively
for church purposes.
(c) The purchase of natural gas or fuel oil by a public or
private utility, either for resale or for use as fuel in the
generation of electricity, or for the purchase of fuel oil or
err" kerosene for use as an aircraft engine fuel or propellant or for
use in internal combustion engines.
(d) Purchases of local telephone service or other
telecommunication services for use in the conduct of a
telecommunication service for hire or otherwise for resale.
Sec. 16 -6. Computation of tax when paid monthly and quarterly -
annually.
The tax imposed and levied pursuant to the Chapter may be
computed on the aggregate amount of purchase during the monthly
period, provided that the amount of the tax to be collected shall
be the nearest whole cent to the amount computed.
err. Sec. 16 - 7. Scope of tax.
Struck through passages are deleted.
Underlined passages are added.
96 -0 -07 10
The purchase upon which a tax is imposed and levied pursuant
`'�✓ to this Chapter shall embrace and include any part of the
transaction of purchase occurring in the City, whether it is the
entering into of a contract for the purpose of the utility service,
the payment of the charges or the use of lines, poles, pipes, wires
or the streets for the transmission or delivery of the service.
Sec. 16 - 8. Occupational license.
The City Clerk shall refuse to issue an occupational license
to an applicant or to renew the same if the tax levied and imposed
pursuant to this Chapter applicable to the business has become
delinquent or remains unpaid.
PART B. CONFLICTING PROVISIONS.
All conflicting ordinances and resolutions, or parts thereof
in conflict with this ordinance, are hereby superseded by this
ordinance to the extent of such conflict.
PART C. SEVERABILITY AND APPLICABILITY.
If any portion of this ordinance is for any reason held or
declared to be unconstitutional, inoperative, or void, such holding
shall not affect the remaining portions of this ordinance. If this
ordinance or any provisions thereof shall be held to be
inapplicable to any person, property, or circumstances, such
N "' holding shall not affect its applicability to any other person,
property or circumstance.
PART D. CODIFICATION.
Provisions of this ordinance shall be incorporated in the Code
of Ordinances of the City of Edgewater, Florida, and the word
"ordinance ", may be changed to "section ", "article ", or other
appropriate word, and the sections of this ordinance may be
renumbered or relettered to accomplish such intention; provided,
however, that Parts B through F shall not be codified.
PART E. EFFECTIVE DATE.
This Ordinance shall take effect upon adoption.
PART F. ADOPTION.
Struck through passages are deleted.
Underlined passages are added.
96 -0 -07 11
After Motion by and Second by
Now the vote on the first reading of this ordinance held on August 19,
1996, was as follows:
Mayor Jack H. Hayman, Sr. XXX
Councilman Danny K. Hatfield XXX
Councilwoman Louise A. Martin XXX
Councilman Mike Hays XXX
Councilman David L. Mitchum XXX
After Motion by and Second by
the vote on the second reading of this ordinance was as follows:
Mayor Jack H. Hayman, Sr. XXX
Councilman Danny K. Hatfield XXX
Councilwoman Louise A. Martin XXX
Councilman Mike Hays XXX
Councilman David L. Mitchum XXX
PASSED AND DULY ADOPTED this day of , 1996.
ATTEST: CITY COUNCIL OF THE
CITY OF EDGEWATER, FLORIDA
Noir
By:
Susan J. Wadsworth Jack H. Hayman, Sr.
City Clerk Mayor
APPROVED FOR FORM
AND CORRECTNESS:
Krista A. Storey
City Attorney
Now
Struck through passages are deleted.
Underlined passages are added.
96 -0 -07 12
AGENDA REQUEST
.►
Date: 8/12/96
PUBLIC HEARINGS, ORDINANCES AND RESOLUTIONS
CONSENT AGENDA X OTHER BUSINESS
ITEM DESCRIPTION /SUBJECT: Change Order and project
closeout for Cory Estates distribution system.
BACKGROUND: Some minor changes to the work were done due
to the recent road paving in Cory Estates and to expedite
new customer connections.
Nair
RECOMMENDATION /CONCLUSION: Approve the lone change order
for the Cory Estates water distribution project in the
amount of $2,751.30. A one year maintenance bond will be
required prior to final payment as well as final inspection.
FINANCIAL IMPACT: $2,751.30
FUNDS AVAILABLE: ACCOUNT NUMBER: Water Impact Fees
(SPECIFY IF BUDGET AMENDMENT IS REQUIRED)
PRESENTED BY: Terry A. Wadsworth, Director of Utilities
PREVIOUS AGENDA ITEM: YES NO X
Date: Agenda Item No.:
Respectfully submitted: Concurrence:
"wrr
Terry A!' Wadsworth Georg E. McMahon
Director of Utilities City anager
SECTION 00843
CHANGE ORDER FORM
Project: CITY OF EDGEWATER
CORY ESTATES WATER DISTRIBUTION SYSTEM
CHANGE ORDER NO. ONE
DATE OF ISSUANCE: 8/2/96 CONTRACTOR: Bruce McGonigal
EH,CTIVEDATE: 8/2/96 ENGINEER: Kyle Fegley, P.E.
OWNER: City of Edgewater
OWNER'S CONTRACT NO.:
The following changes are hereby made to the Contract Documents:
``r►
Original Contract Price $ 107, 806.95
Current Contract Price Adjusted
by previous Change Orders No. $ N/A
Net Increase (Decrease) Resulting
from this Change Order $ 2,751.30
The current Contract Price
including this Change Order $ 110, 558.25
Original Contract Times (Final Completion) Date: 9/1/96
Current Contract Time adjusted
by previous Change Order No. Date:
`fir, Net Increase (Decrease)
Resulting from this Change Order Days:
Current Contract Time (Final Completion)
Including this Change Order Date: 9/1/96
STR/dt/S -E- 1/00843 .TXT
HAI #94- 276.11 00843 -1 120895
•
CHANGES ORDERED:
I. GENERAL This change order is necessary to cover changes in the work to be
performed under this Contract. The General Conditions, Supplementary Conditions,
Nifty Specifications and all parts of the Project Manual listed in Article 1, Definitions, of the
General Conditions apply to and govern all work under this change order.
Change Order No. ONE
11. REQUIRED CHANGES: THis change order is based on actual quantities
of the bid along with a change of adding gulf boxes to the
construction project, adding one driveway cut & repair, adding
280' of 4" pipe with applicable fittings and deducting fittings
not used.
III. JUSTIFICATION: The gulf box additions were requested to facilitate
meter placement by city personnel. The driveway cut & repair
was needed when Volusia County requested not to cut the road and
a reroute in the line was necessary to honor this request. A
savings in asphalt repair was made by doing this. It was determined
that 4" pipe was adequate in 2 certain areas. A savings off the
8" pipe was realized by this change.
IV. PAYMENT:
Original Contract Bid $107,806.95
Actual Bid Items 106,526.95
Additional (Gulf Boxes, driveway, 4" pipe) 4,715.50
Credit for 8" fittings ( 684.20)
441ir (See schedule of values)
TOTAL PROJECT COST $110,558.25
SJR/dt/S- E- 1 /00843.TXT
HAI #94- 276.11 00843 -2 120895
Acknowledgements:
Stow The aforementioned change, and work affected thereby, is subject to all provisions of the
original contract not specifically changed by this Change Order; and,
It is expressly understood and agreed that the approval of the Change Order shall have no
effect on the original contract other than matters expressly provided herein.
Change Order Request by: City of Edgewater
Change(s) Ordered by: City of Edgewater
RECOMMENDED BY: ACCEPTED BY:
Kyle Yegley, P.E• :
(Engineer) (Contractor)
By:
(Authorized Signature) (Date) (Authorized Signature) (Date)
'o1✓
City Engineer
(Title) (Title)
APPROVED BY:
City of Edgewater
(Owner)
By:
(Authorized Signature) (Date)
END OF SECTION
SJR/dt/S- E- 1 /00843.TXT
HAI #94- 276.11 00843 -3 120895
SECTION 00845
SCHEDULE OF VALUES
Pay Estimate No. Final Project Cory Estates
For Period Ending 8/1/96 Prepared by Brenda Johnson Page of
A B C D E F G H I
Item Description Bid Units Unit Bid Complete Complete Value of
Quantity , Price Amount Through Through Items
Last Period This P eriod Completed
Qty. % Qty. %
1.1 INDEMNIFICATION 1 LS 1,00C1,000. 1 100 1 100 $1,000.00
1.2: INSURANCE /BONDS 1 LS 2,45
.61 1 100 1 100 2,454.61
1.3 'PERMITS 1 LS 100. 100.00
1.4 IOB151WITT97ATTON 1 LS 7 T 7354.34 1 100 1 100 7,354.34
2.1 8" WATER MAIN 5,800 LF 8.80 51040.- 5450 100 47,960.00
2.2 DUCTILE NGS IRON 1,120 LBS 3.10 3472. 1690 100 5,239.00
FITTI
2.3 8" GATE VALVES 8 EA 510. 4080. 8 100 4,080.00
2.4 BLOWOFF ASSEMBLY 2 EA 450. 900. 2 100 900.00
2.5 FIRE HYDRANT 10 EA 1950.19,500. 10 100 19,500.00
ASSEMBLY
2.6 ATERSRVES DOUBLE 35 EA 250. 8,750. 19 100 4,750.00
2.7 ATERSRVES SINGLE 40 EA 200. 8,000. 65 100 13,000.00
2.8 SPHALT REPLACEM 200 SY 5.78 1,156. 50 100 289.00
SUB TOTAL 106,526.95
CO1 4" PVC C -900 280 LF 1.47 280 411.60
CO1 4" X 2" CAP 2 EA 30. 2 60.00
CO1 4" X.1" SADDLE 7 EA 18. 7 126.00
CO1 4" MEGALUG 4 EA 18.2C 4 72.80
CO1 8" X 4" REDUCER 2 EA 65. 2 130.00
CO1 4" 45 MJ 2 EA 28.85 2 57.70
CO1 4" UNIFLANGE 8 EA 26.55 8 212.40
CO1 GULF BOX INSTALL 1 LS 3300. 1 3,300.00
CO1 DRIVEWAY REPAIR 1 EA 345. 1 345.00
SUB TOTAL 4,715.50
'rrr CO1 8" X 2" CAP 2 EA 31.10 (2) ( 62.20)
CO1 8" SADDLE 7 EA 18. (7) ( 126.00)
CO1 8" MEGALUG 1 EA 80. (1) ( 80.00)
CO1 8" UNI- FLANGE 8 EA 52. (8) ( 416.00)
( 684.20)
Subtotals 110, 558.25
SJR/dt/S- E- 1 /00845.TXT
HAI #94- 276.11 00845 -1 120595 '
AGENDA REQUEST
C.A. NO.: 96 -108
Date: August 13, 1996
Saw
PUBLIC
HEARING RESOLUTION ORDINANCE
OTHER
CONSENT 08/19/96 BUSINESS CORRESPONDENCE
ITEM DESCRIPTION /SUBJECT:
Satisfaction of Special Assessment (Paving) Lien.
BACKGROUND:
On August 12, 1996, payment in the amount of eight hundred and 40/100
($800.40) dollars was received from Associated Land Title Group, Inc. in
satisfaction of a paving lien recorded against property owned by Russell
and Mary Baim, Sr..
RECOMMENDATION /CONCLUSION:
Staff recommends that the City Council acknowledge receipt of the
%we payment and authorize the Mayor to execute the attached Satisfaction of
Lien.
FUNDS AVAILABLE: (ACCOUNT NUMBER)
(SPECIFY IF BUDGET AMENDMENT IS REQUIRED)
PREVIOUS AGENDA ITEM: YES NO X
DATE: AGENDA ITEM NO.
Respectfully submitted, Concurrence:
Kr to A. Storey if GeorgO E. McMahon
City Attorney City Manager
Ferdinand Mu oz
Finance Director
KAS /rmw
Attachment
4
SATISFACTION OF SPECIAL ASSESSMENT (PAVING) LIEN
CITY OF EDGEWATER, FLORIDA
KNOW ALL MEN BY THESE PRESENTS: That the City Council of the
City of Edgewater, Florida, pursuant to the provisions of Chapter
170, Florida Statutes, on February 15, 1989, filed a lien against
property owned by Russell and Mary Baim, Sr. and described as Lots
10331 and 10332, Block 330, Florida Shores Number Unit No. 12, said
lien being recorded in Official Records Book 3262, Pages 0993
through 0996, of the Public Records of Volusia County, Florida.
The City Council does hereby acknowledge full payment and
satisfaction thereof, including accrued interest, from Associated
Land Title Group, Inc. (on behalf of Russell and Mary Baim, Sr.)
and hereby consents that the same shall be discharged and satisfied
of record.
IN WITNESS WHEREOF, the City Council of the City of Edgewater,
w Florida, acting by and through its Mayor, who was authorized to
execute this Satisfaction of Lien by the City Council action on
August 19, 1996, has executed this instrument this day of
, 1996.
ATTEST: CITY COUNCIL OF THE.
CITY OF EDGEWATER, FLORIDA
By:
Susan J. Wadsworth Jack H. Hayman, Sr.
City Clerk Mayor
APPROVED FOR FORM & CORRECTNESS:
'-v
Krista A. Storey
City Attorney
(f: \wp51 \liens \baim.pav)
�..c.
AGENDA REQUEST
Date: August 13. 1996
NEW UNFINISHED
CONSENT Aug. 19. 1996 BUSINESS BUSINESS
PUBLIC
HEARING RESOLUTION ORDINANCE
ITEM DESCRIPTION /SUBJECT:
Approve transfer of $1,000.00 from the Special Law
Enforcement Trust Fund (the "Fund ") into the General Fund.
BACKGROUND:
On July 1, 1992, the Legislature changed the requirements in
Chapter 932 Florida Statutes, subsection 932.705(4)(c)3.F.S.
relating to contraband forfeitures. Law enforcement agencies
must expend or donate 15% of their collections (if $15,000 or
Now greater) to specified programs. This requirement is based on the
previous fiscal year's collections. During the fiscal year ended
September 30, 1995 the Fund collected a total of $7,115.15 from
forfeitures and other revenues earmarked for the Fund. Since
revenues collected do not exceed the $15,000, there is not a
requirement to expend any funds this fiscal year, however,
$1,000. was budgeted to be used to help offset some of the costs
of the DARE program.
RECOMMENDATION /CONCLUSION:
Currently the City is in its fourth year of the DARE
program. Personnel costs alone for this program exceed $1,000.
The DARE program qualifies as a specified program under Chapter
932. Therefore, I respectfully request that the transfer of
$1,000. from the Special Law Enforcement Trust Fund into the
General Fund (to help offset some of the associated costs of the
DARE program) be approved.
FUNDS AVAILABLE: ACCOUNT NUMBER: 10000 -15108 (Balance on
hand as of 8 -9 -96 $14.504.51)
(SPECIFY IF BUDGET AMENDMENT IS REQUIRED) No
PRESENTED BY: Lawrence F. Schumaker, Chief of Police
PREVIOUS AGENDA ITEM: YES NO XX
DATE: AGENDA ITEM NO.
Respectfully submitted,
Lawrence F. Schumaker
Chief of Police
Concurrence:
sgiwr Geor . E. McMahon
City Manager
AGENDA REQUEST
C.A. NO.: 96 -110
Date: August 12, 1996
PUBLIC
HEARING RESOLUTION ORDINANCE
OTHER
CONSENT BUSINESS 08/19/96 CORRESPONDENCE
ITEM DESCRIPTION /SUBJECT:
CityTel, Inc. Letter of Authorization
BACKGROUND:
On June 10, 1996, the Council considered a proposal from OPM- USA -INC to
place a Personal Communication Service (PSC) tower on the water plant
property. Subsequently, the City received a proposal from CityTel, Inc.
to market City -owned properties for the placement of PSC towers. At the
July 1, 1996 meeting the Council agreed to defer action on the OPM -USA
proposal until the issue could be evaluated further by Staff.
RECOMMENDATION /CONCLUSION:
err Attached is a sample letter of authorization which would enable CityTel,
Inc. to begin marketing City -owned properties. Staff requests that the
Council consider authorizing the Mayor to execute a letter of
authorization to CityTel, Inc. Also attached is a copy of background
information provided by CityTel, Inc.
John Mortellite of OPM- USA -INC has been advised that this issue has been
agendaed for Council consideration on August 19, 1996.
FUNDS AVAILABLE: (ACCOUNT NUMBER)
(SPECIFY IF BUDGET AMENDMENT IS REQUIRED)
PREVIOUS AGENDA ITEM: YES XX NO
DATE: June 10, 1996 AGENDA ITEM NO. 7B
Respectfully submitted, Concurrence:
OP
- A Al 0-
K 'sta A. Sto ey Georg E. McMahon
C'ty Attorney City Manager
KAS
Attachments
`fir DATE:
CityTel, Inc.
Att: Garrett Digman
1600 RiverEdge Parkway, Suite 750
Atlanta, Georgia 30328
Dear Ladies and Gentlemen:
Effective this day of , 199 , the City of , State of
, acknowledges that CityTel is interested in analyzing and leasing
City -owned properties. The City of is making available for consideration
properties listed on Attachment A [see enclosed example: minimum of a street map with sites drawn with
borders and sites numbered; optimally include the type of site (school, park, utility, fire station, etc.) and
address for each site by number] hereto (the "Properties ") for purposes of locating communication towers
and related facilities on the Properties and that City may desire to lease the Properties to CityTel for such
purposes. To facilitate CityTel's analysis and evaluation of the suitability of the Properties for the
intended use, City grants CityTel, its employees, agents, consultants and prospective sublessees and/or
sublicensees the right to access the Properties.
This letter authorizes CityTel to present those properties in Attachment A for consideration by the
authorized PCS license holder in our market. We affirm that the site(s) scheduled are within our
municipality's jurisdiction and that we are authorized to use said sites for municipal purposes.
CityTel shall indemnify City from any loss or damages caused by CityTel or its employees, agents,
consultants and prospective sublessees and/or sublicensees during any inspection of the Properties.
For technical assistance associated with the proposed site(s), CityTel's representatives should
contact at ( )
Sincerely,
City of
By:
Its:
Accepted and Agreed to this day
of ,199
CITYTEL, INC.
By:
Title:
err
POLICE DEPT.
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CityTel
The Wireless Network Alliance
Now EXECUTIVE SUMMARY
• On March 13, 1995, the FCC gave birth to a new industry by reallocating the 1850 to
1990 MHz radio spectrum for personal communications use. The new industry,
commonly referred to as Personal Communication Service (PCS ), promises to be the
first new utility of the 21st Century.
The country was divided into fifty -one (51) large geographic areas called Major Trading
Areas (MTA) and further subdivided into 493 smaller area called Basic Trading Areas
(BTA). The frequency spectrum was divided into six blocks of channels and auctioned
off one block at a time. The first two blocks were for MTA's and were 30 MHz wide.
That auction generated a total of $7.7 billion in March of 1995.
In early 1996 the first of four (4) additional Basic Trading Area (BTA) licenses was
auctioned. That auction generated an astonishing $10.22 billion. In the near future
the remaining 3 blocks of spectrum will be auctioned. With the completion of those
auctions each market in the U.S. will potentially have six PCS operators and two
_,, cellular operators.
PCS is a wireless digital technology with a greater capacity than cellular. PCS has the
potential of replacing wired (home and office telephone service) and cellular telephones
with the convenience of one (1) wireless hand -set. In addition to offering the flexibility
of communicating all over the country, other PCS features which will become available
through this new form of technology include paging, fax, data, and video.
Further, in contrast to over 25 million cellular customers in 1995, wireless service is
estimated to have garner 170 million customers in the United States by the year 2003.
During the past thirteen (13) years, the cellular industry has built approximately
15,000 antenna sites in the country and has a future need to build additional sites in
the near future. It is estimated that by the year 2003 PCS operators will need to build
nearly 100,000 new antenna sites at a cost in excess of $20 billion.
The new infrastructure necessary to deploy the PCS network gives great cause for
concern in all communities faced with the location of new towers.
MARKETING STRATEGY
1 CityTel works with local municipalities for the purpose of leasing municipally -owned
properties upon which PCS tower sites may be erected. As a private third party,
CityTel circumvents the possible exposures for conflict of interest claims against cities
1 05/16/96 CityTel, Inc. - 2
• and, by virtue of the twenty -five year Lease, CityTel is then authorized to act on behalf
of those cities with license holders (operators).
In return for the use of municipally -owned properties, CityTel pays cities royalties
from the gross revenues CityTel generates from tower lease agreements with
`fir operators. These sites will be constructed to support multiple operator tenants on the
same tower. By building in this manner, CityTel is able to minimize the number of
towers needed in a given municipality and increase that community's revenues.
Municipalities benefit through multi-year revenue sources that require no investment
or maintenance on a city's behalf. Finally, communities have fewer tower sites located
in any given region. In the final analysis, a Lease with CityTel is a win -win situation
for all involved parties: government, operators, community members and CityTel.
FEATURES AND BENEFITS
• CityTel's Lease Agreement provides a long -term revenue stream from all city sites
utilized for tower siting yet requires no investment, no risk, no liability and no
maintenance expenses for the city.
• As opposed to a passive approach, the CityTel Lease allows for an innovative and
proactive means by which towers are provided for the PCS infrastructure.
• A Lease with CityTel provides cities with influence over tower placement.
Nor • As opposed to separate private sites for each PCS operator, the CityTel Lease
Agreement provides a plan for promoting collocation of antenna sites.
• CityTel's Lease Agreement allows for the acceleration of PCS deployment.
• Additional emergency or other city communication services may be accommodated
on CityTel at no cost to the city.
• CityTel allows cities to have input on tower placement in sensitive areas to insure
that aesthetics and environmental concerns are addressed.
• A Lease with CityTel provides a means by which cities can replace income lost from
diminishing franchise fees.
A LEASE WITH CITYTEL
As a forerunner in telecommunications consulting, CityTel developed the unique
concept of working on behalf of cities to include those cities in the sphere of influence
which is guiding the PCS industry. Past experience revealed that cities were being left
out of the wireless industry's planning process and resulting revenue streams.
I Nor
• CityTel's sole purpose is to facilitate the coming together of cities, community
members, and operators to share in a business opportunity from which all parties will
benefit.
• CityTel's method creates heightened competition by offering collocation of tower
access to operators.
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• Through its partners and alliances with equipment manufactures, CityTel is
developing new products for use in wireless communications.
• CityTel is committed to Research and Development directed at advancing the wireless
industry, reducing environmental impact, and financially benefiting those
N communities with whom a Lease Agreement has been executed.
• CityTel offers cities the use of CityTel towers to locate emergency management
communications equipment and other wireless services to accommodate current and
future city needs.
PROPOSAL - WHAT CITYTEL IS ASKING CITIES TO DO:
• Sign an authorization letter allowing CityTel access to publicly -owned properties and
allowing those properties to be offered to operators as potential antenna sites.
• Provide a map identifying all available city property with corresponding addresses,
surveys, zoning maps, copies of deeds and any other information needed to provide site
data analysis to operators.
• Sign a lease agreement with CityTel for the use of city -owned property.
• Work with CityTel to secure zoning approval on sites needed to complete the wireless
grid, including those sites which may not be city -owned property.
• Develop zoning ordinances and standards which will encourage operators to utilize
city sites and collocate on tower sites.
- BENEFITS TO CITIES:
• 15% of the gross lease revenues or 50% of ground lease revenues, whichever is greater,
as generated by towers located on city property.
• Tnfluence in the selection of locations of tower sites.
• Favorable public sentiment which results from preservation of a city's aesthetic
beauty through the reduction in the number of towers.
• A means by which to work within governing federal preemption statutes without
sacrificing the best interests of a community.
{ ''or
• Sites for city emergency and other public services to attach their communication •
equipment.
• A voice and participation in the future of telecommunications development in a city.
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QUESTIONS MOST FREQUENTLY ASKED BY CITY OFFICIALS
1) Who is providing CityTel's financing? CityTel performs all aspects of tower
construction management, site engineering, design and development of large
networks related to the cellular and PCS industry. The financing for CityTel
_ ""o'''" towers will primarily be provided from outside financial sources or the PCS
operators themselves.
2) Is financial information available on CityTel? It is available upon request.
3) How tall are the towers going to be? Though generally not over 125 feet, in
rural or industrial areas towers could exceed that height.
4) What will the towers look like? There are a number of tower designs
available; however,. CityTel will be focusing on monopole -type towers which look
like street light poles (See photographs in Addendum). Lattice and guyed towers
will be used where appropriate, i.e. industrial and rural areas.
5) Where will the towers be located? It is CityTel's goal to locate as many
towers as possible on city property, i.e. police stations, fire houses, baseball parks,
schools, tall buildings, pumping stations, sewer plants, even water towers may be
applicable. However, it may be necessary to locate some of the fill -in sites on
z ,,,, private property if the city does not own property in the desired area. It is
important to note that all locations and types of towers to be located on city
property must be agreed upon by the city and CityTel.
6) How much land is required for a tower site? Most monopole sites require
only a 60'x 60' site. Lattice and guyed tower sites may require larger sites
where space is available and appropriate to use. In those situations in which
property is not available CityTel can usually put the equipment under ground
in a vault provided the cost is not prohibitive.
7) If our city owns the local electric utility, can CityTel locate antennae on
existing electrical poles? Though generally not, electrical towers may be
acceptable depending on the height and given safety concerns. But, CityTel
can use utility properties to locate new communication towers.
8) How many other companies are performing the same services that
CityTel is performing? Although there are many other companies that own
private towers, to CityTel's knowledge there are no other companies that
partner with cities to not only allow all the operators to collocate on the towers,
but that also can be shared by the city for the city's own wireless
telecommunication needs, today and in the future. This aspect of CityTel's
innovative plan can become an invaluable asset to your city without any
financial risk, liability or maintenance.
05/16/96 CityTel, Inc. - 5
9) How many different operators can locate on a single tower site? As
many as existing technology will accommodate. CityTel's goal is to
accommodate all of the current and future wireless operators. CityTel is
working closely with new and developing technology to expedite the
development process.
10) What safety and or liability issues should we be concerned about? Cities
are indemnified through the Lease Agreement. The operators will provide
insurance coverage and assume all liability and risk for their operations on city -
owned property.
11) Can our city be named as a co- beneficiary on the insurance policy? Yes.
12) Why does a city need CityTel... can't we prepare our own Request For
Proposal (RFP), construct the infrastructure and then lease it out? The
time, knowledge, personnel, engineers and implementation of a wireless
network is a complex and highly skilled task. The major PCS operators (AT &T,
Sprint, G'1'E, BellSouth, etc.) subcontract their site acquisition and construction
to outside firms that specialize in this area. CityTel is confident that the
performance and experience records in PCS Network Deployment, not only of
CityTel but with CityTel's industry alliances, cannot be equaled in the U.S.
13) Can our city finance these PCS towers through Industrial Development
Bonds? Yes, though this is not CityTel's aim. There are major banks and
other financial institutions that specialize in tower financing. However,
CityTel believes that it is not in the best interests of a city to take the risk for
this type of venture in the early stages of PCS development.
14) Which Operators were awarded bids in our city's market? CityTel
provides listings of specified operators that have been designated to date for each
area.
15) How long will it take to build PCS site towers? Usually 6 to 18 months but
this time frame also depends on when the operators decide to activate service in
your area.
16) How long will it be before our city gets service? Again, the time frame
depends on when the operators decide to initiate service. One of CityTel's jobs
is to highlight your city and the network CityTel is able to offer. Timing can be
(( everything!
■lisry
17) Can our City charge a franchise fee for PCS service? To CityTel's
knowledge this is not possible. However, as states have different legislation, we
would encourage you to understand your own state's legislation.
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05/16/96 CityTel, Inc. - 6
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18) Does the PSC/PUC regulate the PCS industry? Though each state's
PSC/PUC currently regulates phone service, cellular and wireless business
services are not regulated. At this time, it is not believed deregulation will have
much effect on the PCS industry.
%. 19) Why should our city sign a Lease with CityTel? Without immediate and
assertive action the possibility of operators coming in to a community and setting
up plans for tower sites without regard to a city's interest becomes a reality.
Entering into an agreement with CityTel allows a city influence in meeting with
operators, opening communications and, most importantly, having input in
operator plans before operators begin placing tower sites. Financially, a lease
with CityTel provides a needed income stream to benefit city budgets.
20) How much potential income can our city expect to earn? CityTel
estimates city revenues could be as high as $30,000 per tower site per year in
• certain markets, based on a tower being used by multiple operators. However,
these are only revenue projections and can vary from market to market
depending on a city's specific demographics and PCS market potential in a given
area.
21) Is our City responsible for any maintenance? No, CityTel maintains all
aspects of tower sites which relate to the providing of PCS service. Also, open
property sites will be fenced and landscaped professionally if necessary.
22) How long does the lease last? Twenty -five (25) years with an option to renew.
23) How long before our city begins to receive income from a tower site? It will
generally take from 6 to 18 months. Again, this time frame is controlled by the
operators' implementation schedule. A city will receive revenue shortly after the
operator starts to develop the site (ground lease). The city will then begin to receive
additional revenue on a tower lease once a tower is constructed.
24) Does CityTel have an R & D strategy ? CityTel invests a portion of its revenue
in the research and development of new products and services that enhance the use
of public wireless telecommunications networks in the community. These product
concepts are evaluated by a team of industry and academic experts before being
tested and manufactured by CityTel's alliance of manufacturing companies. The
application of these products is controlled by CityTel in an effort to achieve the
highest possible quality standards.
vo 25) Specifically, what does our City need to do in order for CityTel to begin
work on our city's behalf ? Have both the Letter of Authorization and Lease
Agreement reviewed and signed. Assist CityTel with the procurement and
evaluation of site candidate locations, maps, zoning laws, and other information
needed to provide site data analysis to operators. Develop zoning ordinances and
standards which will encourage the use of city properties and the city network.
05/16/96 CityTel, Inc. - 7
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26) What does CityTel do once the Letter of Authorization is signed? CityTel
begins the process by working with the city to locate tower sites on a map and then
presenting those sites to operators. CityTel maintains an ongoing relationship
with the city, the operator, and the community to bring about a harmonious
melding of towers, sites, aesthetics, operators, zoning and any other public concern.
27) What happens after tower sites are provided to CityTel? CityTel reviews
with the city those sites selected by the operator. The city then approves or
disapproves for use the selected sites. If approved, the city enters into the Lease
with CityTel.
What CityTel Expects from the City:
1) Sign the Letter of Authorization allowing CityTel to represent city property.
2) Provide maps and assistance in locating city properties.
3) Review with CityTel the desired sites.
4) Sign the exclusive lease that includes all city properties available for
communications facilities
5) Provide Community Public Relations.
6) Develop city standards and ordinances for communication facilities.
7) Provide to CityTel the site information on each submitted site, if available:
• A) Latitude & Longitude
B) Addresses on all city properties that coincide with city maps
C) Aerial maps
D) Tax maps
E) Zoning maps
F) Plat map
G) Survey
H) Copy of deed
I) Title
J) Any recent FAA, Geotech, or Environmental Studies on individual sites
LEASE AGREEMENT SUMMARY
1) PREMISES: This is the legal description of the city's property. Initially all properties
suitable for construction of Facility Sites are included. As each actual Facility Site is
identified, a legal description will be attached to the Lease. The access to the
property is also described in terms of what is needed.
05/16/96 CityTel, Inc. - 8
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2) USE: This describes the use intended. It also limits the use to telecommunication
•
purposes only. An agreement to work with the city is also discussed on where to
locate sites and alternatives to those sites. It states that CityTel shall assume all
responsibility to the upkeep and care of facilities. Also discussed, is the city's right to
locate their own equipment on the tower sites if needed at NO cost to city. Finally, it
'�•► describes our commitment to adhere to all applicable State and Federal regulations.
3) TERM:
(a) The term is for. 25 years.
(b) Time notice of termination; and ability to start performing necessary surveys,
'soil test and radio frequency designs to be presented to operators.
(c) CityTel assurances and intentions of removal of facilities and posting of a bond
guaranteeing such removal if necessary.
(d) Termination rights of the city after a certain waiting period.
(e) Option to renew the lease with the city.
4) RENT:
(a) For legal purposes there has to be an amount conveyed.
(b) "Income Stream" to the city. 15% for gross tower lease revenues or 50% of gross
real estate lease revenues to be paid within 30 days of receipt of quarterly
„ payments from operators.
(c) Revenue to be derived from "GROSS" lease revenue of site without any expenses
taken out.
(d) The city has the right to audit our books if for any reason they believe the income
is incorrect.
5) EXPENSES:
(a) CityTel assumes all responsibility of utility obligations.
(b) CityTel pays any taxes in regard to the facility.
(c) CityTel will purchase liability insurance to protect the interests of the city.
(d) CityTel will reimburse the city for expenses related to this agreement.
6) NOTICE: Where CityTel will send any correspondence related to the lease.
• 7) LIABILITY AND INDEMNITIES: CityTel assumes all responsibilities and agrees
to defend and hold the city free from any liability, caused by CityTel, associated
with tower sites.
fir
8) DEFAULTS AND REMEDTFS: Discusses dispute resolution..
9) PREFERENTIAL RIGHT to PURCHASE: If the city should decide it wants to sell a
particular facility site, it must first offer CityTel the right to buy that site.
05/16/96 CityTel, Inc. - 9
- 10) ASSIGNMENT, SUBLETTING and MORTGAGING: CityTel will always remain
liable even if during normal course of business it needs to assign, sublet or mortgage
said facilities constructed on city -owned property in order to develop site to its
fullest potential.
_ ``w 11) MEMORANDUM OF LEASE: Discusses recording of the lease of city -owned
property.
12) MISCELLANEOUS:
(a) CityTel has shown its willingness to work with the city and wants to assure
that the city will assist in the process of acquiring the necessary permits.
(b) The city will help CityTel in identifying the needed facility sites.
(c) CityTel's approach to working for and with the city's interest in mind.
(d) This is to protect the integrity of the facility sites and assure CityTel will
not have to be subjected to hindrance, ejection or molestation by any person
whomsoever.
(e) This is to protect the city and show that CityTel does have the authority to
enter into this lease.
(f) If the city facility site (rooftop, existing tower, etc.) is substantially damaged
rent shall abate.
(g) Protection for the city and CityTel if by chance the site is condemned.
(h) City agrees to lease CityTel newly acquired sites as might be necessary in
iolaw
the expansion of services in the future.
•
(i) Legal term for Binding Effect.
(j) Self explanatory.
(k) City discloses known environmental problems. City agree CityTel is only
liable for environmental problems caused by CityTel.
(1) This protects both party's concerns as to the misinterpretation of any part of
the lease.
(m) Self explanatory.
(n) Miscellaneous.
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