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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Rachel Clark, City Clerk Subject:
An Ordinance of the City of San
Dept: City Clerk Bernardino amending Section 5.04.015
of the San Bernardino Municipal Code
Date: December 22, 2000 RIG 1 N A L by adding Sub Section "E" relating to
Business Registration Certificate
Application processing fees.
MICC Meeting Date: Jan. 5, 2004
Synopsis of Previous Council Action:
Recommended Motion:
That said ordinance be laid over for final adoption.
.rJ . Ai. II /:1 fi, . 1-
.1I"t~ . .....,. ~~
Signature
Contact person: r.inrly RII"",ht.... RR ~lIpV
phnnl3o- ~?nn
Supporting data attached:
Ye!;
Ward:
FUNDING REQUIREMENTS: Amount:
Source: (Acct. No.)
(A,...,...t nPoc:rrir+inn)
Finance:
Council Notes:
Agenda Item 1\
if2~
J.1nit1(
CITY OF SAN BERNARDINO - REOUEST FOR COUNCIL ACTION
STAFF REPORT
Submitted by: City Clerk's Office
Council Meeting of January 5, 2004
Subiect
An Ordinance of the City of San Bernardino amending Section 5.04.015 of the San
Bernardino Municipal Code by adding Sub Section "E" relating to Business Registration
Certificate Application processing fees.
Background
Numerous cities throughout California charge a processing fee for new and/or renewal
business registration applications. This fee is in addition to the annual business
registration fee collected from businesses operating within a particular city's jurisdiction.
In the fall of2002, the City of Orange conducted a survey of cities who are members of
the California Municipal Revenue Tax Association (CMRTA) inquiring if they charge a
business license processing fee. There were 39 cities that responded to the survey and all
indicated they charged a processing fee (Exhibit A). The average fee charged for a new
application is $44.50 with the highest fee being $185.00 and the lowest $10.00. In
addition, 16 of these cities also charge a processing fee for renewal applications with the
average fee being $19.88.
As this survey did not include cities in the Inland Empire, our office conducted a phone
survey of several local jurisdictions with the following results:
Colton
Fontana
Ontario
Rancho Cucamonga
Redlands
Riverside
$25 one time processing fee - $10 fee for renewal or changes
$35 one time processing fee - $15 fee forrenewal
None
None
None
None
The City Clerk's Office has analyzed staffs time to process both new and renewal
applications; results are $12.54 and $9.82 respectively. We propose a $12.00 processing
fee for new applications and a $9.00 processing fee for renewal applications.
In addition, our office recommends exempting daily and monthly business registration
applications from the processing fee. Although staff time is the same to process such
applications, renewal packages and reminder notices are not mailed to these accounts due
to their transient nature. In addition, most of the registrations issued in these categories
have a considerably lower registration fee than a service-based business or one with a
commercial location. Examples of this type of registration are:
1
Parade Peddlers
Christmas Trees
Vendor at special events (including Rte 66)
Perris Hill Park Art Display
Special Sales/Seminars
Firework Stands
$10.00 per day
$200.00 per season (Nov/Dec)
$10.00 per day
$7.50 per month
$60 per month
$200 for selling period (6/28 -7/4)
Currently there are approximately 290 business registrations that fall into these
categories, most of which are Rte 66 vendors (116), and vendors at special events (62).
Based on figures from 2002, projected additional annual revenue for processing fees for
new business applications would be $24,000. An additional $126,000 in annual revenue
would be derived from an application processing fee for renewal applications.
Financial Impact
Ifboth the new and renewal application fees were implemented, projected additional
annual revenue would be $150,000.
Recommendation
That the ordinance be laid over for final adoption.
2
usmess Icense rocessm ees
ONE TIME RENEWAL.
PROCESSING PROCESSING CHARGE FOR CHARGES FOR
CITY FEE FEE CHANGES DUPLICATION
Anaheim 1$ 27.00 $ 27.00 $ 27.00 $ 27.00
Azusa :$ 65.00 $ 23.00 $ 2.00 $ 16.00
Berkelev $ 56.00 I
Brenlwood ;$ 30.00 i
Carson ,$ 100.00
Corona '$ 33.00 $ 6.00 $ 3.00 $ 3.00
Dixon $ 120.00 $ 40.00
-
Encinttas $ 25.00 $ 15.00 '
Folsom $ 20.00
Fountain Valley i$ 25.00
Fresno $ 25.00
Fullerton $ 15.00 $ 15.00 $ 15.00 $ 15.00
Garden Grove $ 25.00 $ 10.00 $ 10.00
Gilrov - Comm $ 185.00
Gilroy - Home $ ~
Gilroy - Outside Coming into citv $ 40.00 ,
Huntington Beach $ 40.00 $ 18.00 $ 5.00 $ 5.00
Irvine $ 50.00
La Palma - Comm. $ 60.00 $ 30.00 $ 30.00
La Plllma - Home. $ 40.00 $ 30.00 $ 30.00 $ 30.00
La Palma - Outside $ 30.00 $ 30.00 $ 30.00 $ 30.00
Lawndale .. $ 75.00
Lana Beach $ 15.00 $ 10.00
Madera $ 50.00
Marina $ 50.00
Moraan Hill $ 45.00
Murrieta $ 30.00
Napa $ 10.00 ,
I
Norco - Comm. $ 75.00
Norco - Home $ 31.00
Nor-co - Outside $ 50.00
Orange $ 37.50
Oxnard $ 25.00 $ 10.00
Reno $ 15.00
San Buena Ventura $ 45.00
San Clemente - Comm. $ 40.00
San Clemente - Home $ 10.00
San Jose $ 40.00
San Juan Capistrano $ 40.00 i $ 10.00 $ 5.00 $ -~
San Rafael - Comm 1$ 75.00
San Rafael - Home i$ 60.00 !
Santa Ana 1$ 22.00 $ 15.00 ' $ 15.00 $ 15.00
Santa Fe Sprinas $ 25.00 $ 20.00
Signal Hill $ 10.00 f--
Tracy $ 50.00
Westminster 1$ 40.00 $ 19.00 -L
Yorba Linda '$ 25.00 I 19.88 r --
Averaaes $ 44.50 i $ -15.581$ 15.60
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7
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING
SECTION 5.04.015 OF THE SAN BERNARDINO MUNICIPAL CODE BY ADDING
SUB SECTION "E" RELATING TO BUSINESS REGISTRATION CERTIFICATE
APPLICATION PROCESSING FEES.
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
DO ORDAIN AS FOLLOWS:
SECTION 1. Section 5.04.015 of the San Bernardino Municipal Code is hereby
amended by adding Sub Section "E" to read as follows:
5.04.015 Business Registration Certificate - Application - Issuance.
E. Each new or renewal business registration application shall be accompanied by a non-
refundable application processing fee established by resolution of the Mayor and
Common Council which shall be no more than necessary to cover the costs of
processing. This fee shall be in addition to the business registration fee and shall not be
prorated. Daily and Monthly Business Registration Applications shall be exempt from
this requirement.
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AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING
SECTION 5.04.015 OF THE SAN BERNARDINO MUNICIPAL CODE BY ADDING
SUB SECTION "E" RELATING TO BUSINESS REGISTRATION CERTIFICATE
APPLICATION PROCESSING FEES.
I HEREBY CERTIFY that the foregoing ordinance was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a
meeting thereof, held on
day of
, 2004, by the following vote, to wit:
the
Council Members:
NAYS
ABSTAIN ABSENT
AYES
ESTRADA
LONGVILLE
MCGINNIS
DERRY
SUAREZ
ANDERSON
MCCAMMACK
Rachel G. Clark, City Clerk
The foregoing resolution is hereby approved this
day of
2004.
Judith Valles, Mayor
City of San Bernardino
Approved as to
Form and legal content:
JAMES F. PENMAN,
City Attorney
:2!e
,
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Rachel Clark, City Clerk
Subject:
An Ordinance of the City of San
Bernardino amending Section 5.04.015
of the San Bernardino Municipal Code
by adding Sub Section "E" relating to
Business Registration Certificate
Application processing fees.
MICC Meeting Date: Jan. 5, 2004
Dept: City Clerk
Date: December 22, 2003
Synopsis of Previous Council Action:
Recommended Motion:
That said ordinance be laid over for final adoption.
/J . J fi 8 . ,-
'J~-e~-l.....t.L ." ~ . ~..It..A"c..
'..
Signature
Contact person: ~inrly RIU."ht..r. RR ~"pv
Phnn..' ~7nn
Supporting data attached:
Yes
Ward:
FUNDING REQUIREMENTS: Amount:
Source: (Acct. No.)
(A,.,,-,t n..",.,riptinn)
Finance:
Council Notes:
Agenda Item No.
~.
CITY OF SAN BERNARDINO - REOUEST FOR COUNCIL ACTION
STAFF REPORT
Submitted by: City Clerk's Office
Council Meeting of January 5, 2004
Subiect
An Ordinance of the City of San Bernardino amending Section 5.04.015 of the San
Bernardino Municipal Code by adding Sub Section "E" relating to Business Registration
Certificate Application processing fees.
Background
Numerous cities throughout California charge a processing fee for new and/or renewal
business registration applications. This fee is in addition to the annual business
registration fee collected from businesses operating within a particular city's jurisdiction.
In the fall of 2002, the City of Orange conducted a survey of cities who are members of
the California Municipal Revenue Tax Asso~CMRTA) inquiring if they charge a
business license processing fee. There wer~ that responded to the survey and all
indicated they charged a processing fee (Exhibit A). The
~dd:;i;~:Vt.o ~ ~ ..~v .~ith t~e L,;~__' n~ n_..., __:_.__..nd ~~th the
_ ~ n
As this survey did not include cities in the Inland Empire, our office conducted a phone
survey of several local jurisdictions with the following results:
~Oll.
>.
Ontario
Rancho Cucamonga
Redlands
Riverside
$25 one time processing fee - $10 fee for renewal or changes
$35 one time processing fee - $15 fee for renewal
None
None
None
None
The City Clerk's Office has analyzed staffs time to process both new and renewal
~e $12.54 and $9.82 respectively. W
~sand
In addition, our office recommends exempting daily and monthly business registration
applications from the processing fee. Although staff time is the same to process such
applications, renewal packages and reminder notices are not mailed to these accounts due
to their transient nature. In addition, most of the registrations issued in these categories
have a considerably lower registration fee than a service-based business or one with a
commercial location. Examples of this type of registration are:
~--
Parade Peddlers
Christmas Trees
Vendor at special events (including Rte 66)
Perris Hill Park Art Display
Special Sales/Seminars
Firework Stands
$10.00 per day
$200.00 per season (Nov/Dec)
$10.00 per day
$7.50 per month
$60 per month
$200 for selling period (6/28 - 7/4)
Currently there are approximately 290 business registrations that fall into these
categories, most of which are Rte 66 vendors (116), and vendors at special events (62).
Based on figures from 2002, projected additional annual revenue for processing fees for
new business applications would b . o' An in annual revenue
would be derived from an application processing fee f01. _ applications.
Financial Impact
Ifboth the new and renewal application fees were implemented, projected additional
annual revenue would b. _.~v,vvv.-
Recommendation
That the ordinance be laid over for final adoption.
2
usmess Icense rocessm ees
ONE TIME RENEWAl
PROCESSING PROCESSING CHARGE FOR CHARGES FOR
CITY FEE FEE CHANGES DUPLICATION
Anaheim 1$ 27.00 $ 27.00 $ 27.00 $ 27.00
Azusa :$ 65.00 $ 23.00 ' $ 2.00 $ 16.00
Berkeley 1$ 56.00
Brentwood '$ 30.00 i
Carson 1$ 100.00 i
Corona '$ 33.00 $ 6.00 $ 3.00' $ 3.00
Dixon $ 120.00 $ 40.00
-
Encinitas $ 25.00 $ 15.00 '
Folsom $ 20.00
Fountain Valley :$ 25.00 I
Fresno 1$ 25.00
Fullerton $ 15.00 $ 15.00 $ 15.00 $ 15.00
Garden Grove $ 25.00 $ 10.00 $ 10.00
GHrey. Comm $ 185.00
GUrey . Home $ ~
GOrey. OUl8ide Coming into city $ 40.00 .
Huntington Beech $ 40.00 $ 18.00 $ 5.00 $ 5.00
Irvine $ 50.00
La Palma. Comm. $ 60.00 $ 30.00 $ 30.00
La PIIIma. Home. $ 40.00 $ 30.00 $ 30.00 $ 30.00
La Palma. Outside $ 30.00 $ 30.00 $ 30.00 $ 30.00
Lawndale. -. $ 75.00 .
Long Beach $ 15.00 $ 10.00
Madera $ 50.00
Marina $ 50.00
HIli $ 45.00 I
Murrieta $ 30.00
Napa $ 10.00 i
Norco. Cornm. $ 75.00 i
Norco . Home $ 31.00 I
Norco - Outside $ 50.00 I
Orange $ 37.50
Oxnard $ 25.00 $ 10.00
Reno $ 15.00
San Buena Ventura $ 45.00
San Clemente. Cornm. ,$ 40.00
San Clemente. Home $ 10.00
San Jose $ 40.00
San Juan Capistrano $ 40.00 i $ 10.00 $ 5.00 $ 5.00
San Rafael. Comm 1$ 75.00 --'--
San Rafael. Home ,$ 60.00 !
Santa Ana 1$ 22.00 $ 15.00 ' $ 15.00 $ 15.00
Santa Fe Sprinas $ 25.00 $ 20.00
Signal Hill $ 10.00 +--
Tracy $ -
50.00 I
Westminster 1$ 40.00 $ 19.00 --L
Y orba Linda :$ 25.00 I 19.881 $ --
'. I
Averaaes I $ 44.50 i $ -15.581$ 15.60
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ORDINANCE NO.
AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING
SECTION 5.04.015 OF THE SAN BERNARDINO MUNICIPAL CODE BY ADDING
SUB SECTION "E" RELATING TO BUSINESS REGISTRATION CERTIFICATE
APPLICATION PROCESSING FEES.
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
DO ORDAIN AS FOLLOWS:
SECTION 1. Section 5.04.015 of the San Bernardino Municipal Code is hereby
amended by adding Sub Section "E" to read as follows:
5.04.015 Business Registration Certificate - Application - Issuance.
E. Each new gr ~1l1 business registration application shall be accompanied by a non-
refundable application processing fee established by resolution of the Mayor and
Common Council which shall be no more than necessary to cover the costs of
processing. This fee shall be in addition to the business registration fee and shall not be
prorated. Daily and Monthly Business Registration Applications shall be exempt from
this requirement.
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AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING
SECTION 5.04.015 OF THE SAN BERNARDINO MUNICIPAL CODE BY ADDING
SUB SECTION "E" RELATING TO BUSINESS REGISTRATION CERTIFICATE
APPLICATION PROCESSING FEES.
I HEREBY CERTIFY that the foregoing ordinance was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a
meeting thereof, held on
the
day of
, 2004, by the following vote, to wit:
Council Members:
AYES
NAYS
ABSTAIN ABSENT
ESTRADA
LONGVILLE
MCGINNIS
DERRY
S '7 I< e. L..L:i
l' Irs ~H JOHNSON
MCCAMMACK
Rachel G. Clark, City Clerk
The foregoing resolution is hereby approved this
day of
2004.
Judith Valles, Mayor
City of San Bernardino
Approved as to
Form and legal content:
JAMES F. PENMAN,
City Attorney
By:
..,
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User Fee Determination
Cost Analysis Worksheet
DeDartmentlDivision Fund Account User Fee DescrlDtlon Date
City Clerk/Business Registration 001 4301 Application Processing Fee 12/22/03
oeserl lion of service. demand, subsld ,and other comments:
Proposed fee for processing a new business registration application. This cost analysis represents the minimum cost
associated with processing a new application; if the application is staff initiated, the actual cost would be much higher.
For administrative ease, a single fee is proposed.
Personnel Costs Labor Rates
SlraightTime Fringe TotalDlrect Depl. orOiv. Total Butdened Hours by Total Labor
Position La"" Benefits Labor Cost "'""""'" Labor CostIHr. Posilionpei'"Unit :::OStper
Account Clerk III 16.55 4.97 21.52 2.15 23.67 0.467 11.05
Total Burdened Personnel Costs per Unit of Service: 11.05
Material & Rental Costs
De8C1iptIOn Cost Each Qua"",- Unl1CooI
Postaoe - Certificate 0.35 1 0.35
Total Other costs per Unit of Service: 0.35
Other Costs (Equipment, faclli rental, part-time labor wlo benefitsl
Description Cost Each Quantity Required UnilCost
Total Other costs per Unit of Service:
Comparisons to Proposed Fee
More (Less) than S.B.
Jurisdiction Fee Der Unit Dollars Percentaoe
San Bernardino $ 12.00
Colton $ 25.00 $ 13.00 108%
Fontana $ 35.00 $ 21.00 192%
Riverside None
Ontario None
Rancho Cucamonaa None
Corona $ 33.00 $ 21.00 175%
Huntinaton Beach $ 40.00 $ 28.00 233%
Total ServleeDlrec:cCost 11.40
Clt:f"WkIe Gen. & Admin.
Rate 0 10"- 1.14
TotlllSelvleeCoslAJnit 17.54
Recommended Fee 1?00
R~FeeSubllcly 0.54
~ FeeAmold 0.00
Fee Inr:raase (OecruIe) 1? 00
User Fee Determination
Cost Analysis Worksheet
De artmentfDlvision
Fund Account User Fee Oescrl tlon
Date
City Clerl<lBusiness Registration 001
4301
Application Processing Fee - Renewal
12/22/03
Description of service, demand, subsidy, and other comments:
Proposed fee for processing a renewal business registration application.
Personnel Costs Labor Rates
Straight Time Fringe Total Direct OeplorDiv. Total Burdenecl ..... by Total Labor
Position Lobo Benefits labor Cost ""-, Labor Cost/Hr. Position per Unit Coot....
Account Clerk III 16.55 4.97 21.52 2.15 23.67 0.333 7.88
Total Burdened Personnel Costs per Unit of Service: 7.88
Material & Rental Costs
Desaiplion
Posta e - Renewal Packa e
Posta e
CostEacn
0.35
0.35
Quantity Required lJniI: Cost
1
2
0.35
0.70
Total Other costs per Unit of Service:
1.05
"Other Costs E ul ment, faclll rental, art-time labor wlo benefits
Description
Cost Each
Quantity Required Unit Cost
Total Other costs per Unit of Service:
Com arisons to Pro osed Fee
More (Less) than S.B. TOlal Servlee Direct Cost 8.93
Jurisdiction Fee erUnit Dollars Pareenta e City-Wide GIln. & Admlll.
San Bernardino $ 9.00 R*01ll% 0.89
Colton $ 10.00 $ 1.00 11% TotalServiceColt/Unlt ~,82
Fontana $ 15.00 $ 6.00 68%
Riverside None Recommended Fee ~,OO
Ontario None R8lXImmended Fee Subsidy 0.82
Rancho Cucamon a None CurrenlFeeAmount 0.00
Corona $ 6.00 $ 3.00 -33% Fee Increase {Oecreasej ~OO
Huntin ton Beach $ 18.00 $ 9.00 100%
. tI
f.E. SCHNETZ
COMMERCIAL BROKERAGE
330 North "D" Street. Suite 50 I, San Bernardino, CA 9240 I
(909) 889.0754 . fax (909) 889-0625
EMAIL: Frank@Feschnetz.com
January 22, 2004
Mayor Judith Valles
City of San Bernardino
300 North D Street
San Bernardino, California, 9240 I
RE: Proposed Business Registration Processing Fee
Dear Mayor Valles:
I would like to convey to you my opposition to of the above-referred fee. The Business
Registration Fee is nothing but a tax. Businesses must pay the fee to do business in our
City and receive nothing in return. It definitely is not a fee for service.
New businesses and existing businesses, when ownership changes, must now pay fees
associated with certificate of occupancy and zoning verification when the Business
Registration is applied for. A fee to process the Business Registrationform would be like
the Internal Revenue Service charging taxpayers to process their tax return.
Our City will generate additional revenue and help created more jobs for its citizens by
encouraging businesses to locate and expand here. As a small local business owner, I am
excited that San Bernardino is finally ready to take its place in the SQuthern California
economic upturn. Please do not encourage business to skip us during the "East Valley
Economic Expa . " by enacting business unfriendly policies.
twenty-five doll' fee for new Business Registrations and nine dollar fee for existing
busin ew their Business Registration seems like a small amount in the scale of
the large sum of revenue the City collects each year in Business Registration taxes. My
fear is that if this fee is adopted, the registration tax form-processing fee will increase
annually. Our Business Registration Fee or tax is already one the highest in the county.
1f:2Co
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Mayor Judith Valles
January 22, 2004
Page 2
If you have any questions or would like to discuss this matter further, please do not
hesitate to contact me.
~nCerelY ()
.~r:.
Frank E. Schnetz
CC: Councilwoman Esther Estrada
Councilwoman Susan LongviIIe
Councilman Gordon McGinnis
Councilman Neil Derry
Councilman Joe Suarez
Councilwoman Betty Dean Anderson
Councilwoman Wendy M;cCjlffimack
Rachel Clark, City Clerk V