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96-057 RESOLUTION NO. 96-57 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENTURA, FLORIDA, URGING THE GOVERNOR OF THE STATE OF FLORIDA, THE FLORIDA LEGISLATIVE DELEGATION, THE MEMBERS OF THE FLORIDA TELECOMMUNICATIONS TAXATION TASK FORCE AND THE FLORIDA LEAGUE OF CITIES TO PROTECT THE TRADITIONAL REVENUES THAT ARE ASSOCIATED WITH LOCAL CONTROL WITHIN THE TELECOMMUNICATIONS INDUSTRY AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Aventura, Florida has made the following determinations: 1. The telecommunications industry has made dramatic impact on the federal legal framework governing telecommunications, as well as the authority of local government entities, by the passage of the Telecommunications Act of 1996. 2. Overall, the intent of the Act is the development of competition in the telecommunications market to provide long distance telephone service, as well as cable television service, audio services, video programming services, interactive telecommunications and internet access. 3. Similarly, long distance providers, cable operators, and utility companies are now permitted to offer local exchange telephone service, as well as all of the other telecommunications services referred above. Resolution No. 96~57 Page 2 4. This City Council is concerned with how taxes would be allocated locally, and how the costs of administration at the state level would be paid. 5. This City Council believes, most certainly, that the amounts of monies received by the City of Aventura would significantly decrease and taking away any ability of the City of Aventura to levy franchise fees minimizes the amount of oversight and control over the public right-of-ways traditionally reserved to the City. 6. The hold harmless formula utilized to determine the tax is unfair to newly- incorporated cities that did not collect utility tax and franchise fee proceeds in the prior fiscal year. 7. The City of Aventura stands to lose $800,000 in revenue based on the Telecommunications Tax Task Force proposal. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AVENTURA, FLORIDA, THAT: Section 1. This City Council urges the Governor of the State of Florida, the Florida Legislative Delegation, the Florida Telecommunications Taxation Task Force, and the Florida League of Cities to protect the traditional and potential revenues that ara associated with local control within the telecommunications industry by: a. supporting the continued authority for cities to manage and determine compensation for the use of public rights-of-way; Resolution No. 96-57 Page 3 b. supporting legislation that recognizes the dedicated funding purpose of each revenue source; c. supporting the continued authority of cities to utilize cable and telecommunication franchise fees and tax revenues at their discretion; d. supporting legislation that eliminates tax inequities; taxes functionally equivalent services similarly regardless of the service provider; providing uniformity among similar state and local government taxes; and providing comprehensive definitions to account for the development of new cable and telecommunications products and services; e. supporting legislation preserving cities' ability to collect and audit franchise fee and tax revenues implemented under cities' jurisdiction. Section 2. The City Manager is hereby directed to forward a copy of this Resolution to the Governor of the State of Florida, the Florida Legislative Delegation, the members of the Florida Telecommunications Taxation Task Force, and the Florida League of Cities. Section 3. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution was offered by Councilmember Rogers-Libert, who moved its adoption. The motion was seconded by Councilmember Perlow, and upon being put to a vote, the vote was as follows: Resolution No.%-57 Page 4 Councilmember Jay R. Beskin yes Councilmember Ken Cohen yes Councilmember Harry Holzberg yes Councilmember Jeffrey M. Pedow 7es Councilmember Patricia Rogers-Libert yes Vice Mayor Arthur Berger yes Mayor Arthur I. Snyder absent PASSED AND ADOPTED this 3rd day of December, 1996. ARTHUR I. SNYDER, MAYOR ATTEST: TERESA M. SMITH, CMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: CITY ATTORNEY EMS/tms