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HomeMy WebLinkAboutMINUTES - 07161985 - 2.1 1 TO: BOARD OF SUPERVISORS Phil Batchelor, Contra FROM: County Administrator Costa DATE: July 11 , 1985 County SUBJECT: Santa Barbara County New Oil Tax J' SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION 1 . Accept report concerning progress being made by Santa Barbara County in establishing a new oil tax on oil processing in that County. 2 . Continue to gather information and conduct research towards implement- ing a gas and oil tax in Contra Costa County. BACKGROUND On April 9, 1985 the Board referred to this office a Cal-Tax News article relating to Santa Barbara County' s consideration of imposing an oil processing tax. We have contacted the Office of the County Administrative Officer in Santa Barbara to obtain more information on this matter. The Santa Barbara County Board of Supervisors has conducted two public hearings to receive input on establishment of an oil processing tax. The public testimony was nearly unanimous in its opposition to the concept as described in the draft ordinance presented at the hearings. On May 28 , 1985 the Board voted to postpone a decision on putting the tax proposal on the November, 1985 ballot. SUMMARY It appeared to staff of Santa Barbara County that the concept of an oil processing tax as presented in the draft ordinance would not accomplish the County' s objectives in view of the anticipated socioeconomic mitigation program being included as a condition in issuing new development permits. They anticipate an extremely difficult and costly legal battle with the oil companies in the event that the voters ever approve an oil tax. Our office has been informed by a representative of Pacific Gas and Electric Company that if our County were to implement a gas and oil tax, P. G. & E. would request permission from the Public Utilities Commission to increase user charges sufficient to offset P. G. & E. ' s increased costs resulting from implementation of the tax. CONCLUSION It was recommended that the Board of Supervisors in Santa Barbara County defer the concept of an oil processing tax designed to mitigate the impact of oil development activities in order to allow sufficient time for the CONTINUED ON ATTACHMENT: XX YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) X k�A,,,_ ACTION OF BOARD ON July 16, 1985 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS X UNANIMOUS (ABSENT III, .IV ) 1 HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ONQTHE DATE SHOWN. CC: County Counsel ATTESTED �_ i- le - 19Z Clerk Of the Board ~` PHIL BATCHELOR, CLERK OF THE BOARD OF Community Development SUPERVISORS AND COUNTY ADMINISTRATOR County Administrator — --- --- ---------- - -- M382/7-83 BY ' DEPUTY Z. current socioeconomic impact monitoring system to be implemented and evaluated. It is felt this is a more direct and defensible method to produce needed revenues to offset the impact of oil development. If the socioeconomic system proves to be either too unwieldy, inefficient or limited in scope, then an oil processing tax could be considered at a later date.