Rancho P. V. Council Warned About Proposals to Raise Fees

The first of three City Council public hearings on potential revenue-raising measures drew a word of caution from the business community over fee increases and a statement from a trash collector that any added costs would be passed on to customers.

John Corcoran, president of Palos Verdes Peninsula Chamber of Commerce, told the council last week that most businesses in the city are small and cannot afford the substantial increases in some of the business charges being considered.

City Manager Donald Guluzzy has proposed that annual business license fees be raised from the present $31.85 to $35, $40 or $45. That would generate up to $41,290, he said.

Guluzzy also has called for lowering the gross-receipts minimum, which determines the fees on receipts businesses pay, from $50,000 to as low as $10,000. This would yield between $15,000 and $25,000 in revenue, depending upon the minimum adopted. Businesses currently pay 49 cents per $1,000 on gross income above $50,000.

Another proposal from the city manager would eliminate a $150-per-truck charge for trash collection and replace it with a charge on each housing unit served. Charging collectors $10 to $50 per unit per year has the potential of yielding from $100,000 to $500,000 in revenues, he said. Guluzzy said trash trucks damage city streets and the additional revenue would be used for repairs.

But higher fees would be passed on to customers, said John Giacopuzzi, a trash collector who addressed the council. His trash collection fees in Rancho Palos Verdes range from $7.50 to $10.30 per month.

These and other revenue-raising measures, including an admission tax for ticketed entertainment events and a utility users tax, will be on the council agenda again on Oct. 15. No action is expected before December.

In a related matter, the council unanimously increased miscellaneous building permit and plumbing and mechanical permit fees, effective immediately. New fees are based on the 1984 Los Angeles County building code fees, plus 50%, and more accurately reflect the city’s costs, Guluzzy said. Fees vary depending on the kind of job being done.