Council to consider lawsuit

Costa Mesa City Council members will explore their options today on several issues facing residents, including whether to file a lawsuit against Time Warner for reports of poor cable service, noise pollution at John Wayne Airport and if they should levy higher taxes on the city’s hotel guests.

Since the news broke early last month that the city of Los Angeles was suing Time Warner for allegedly failing to answer calls in a timely matter, provide efficient service repairs and fair prices, Costa Mesa leaders have considered following suit and taking the cable giant to court.

Time Warner Cable became Costa Mesa’s primary joint cable, Internet and phone provider in August 2006 when the company acquired the city’s customers in a national holdings trade-off with Adelphia and Comcast. Residents took the company to task when city leaders summoned a representative to a City Council meeting to answer for the barrage of complaints. Council members and city attorneys will discuss whether suing the company is in the city’s best interest, officials said.

City leaders will also consider if the city’s long-held 6% Transient Occupancy Tax should be increased to help cope with the financial realities of today. The tax, also known as a visitor’s tax, is imposed on hotel, motel or inn guests in Costa Mesa and generates millions of dollars a year. But it’s among the lowest in the county, City Manager Allan Roeder said.

“Community residents have come to expect a ... high quality and level of city services,” according to the city staff report to council members. “However, the gap between the community’s expectations and fiscal reality has continued to widen over the past several years.”

The average hotel tax countywide is 10.5%. Just a 2% increase in Costa Mesa’s tax would bring in an additional $1.4 million annually, Roeder said. If you consider the city’s 2% Business Improvement Assessment already in place for tourism funding and tacked onto the visitor’s tax, it brings Costa Mesa to right about the county average, he said.

Council members will also study a report on noise from departing flights from John Wayne Airport. City leaders are following Newport Beach’s lead and exploring what options they have to mitigate the airport’s impact on local residents, Roeder said.

JOSEPH SERNA may be reached at (714) 966-4619 or at joseph.serna@latimes.com.