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HomeMy WebLinkAbout24-City Clerk f C CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION c c From: Rachel Clark, City Clerk Subject: An Ordinance of the City of San Bernardino amending Section 5.04.525(D) of the SBMC and adding Section 5.04.525(H) to the SBMC relating to Business Registration fees based on gross receipts. M/CC Meeting Date: 9/18/06 Dept: City Clerk Date: 9/13/06 Synopsis of Previous Council Action: Ordinance MC-935, 4-17-95 Recommended Motion: That said Ordinance be laid over for final adoption. 1k~ IJ. CLt~ Signature Contact person: ~inrly RII""hh.r phnn",~.,nn Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: None Source: (Acct. No.) (Arrt n~c:("rirtinn) Finance: Council Notes: Agenda Item No. :;:24 ~ - /q - 06 f C CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subject: An Ordinance of the City of San Bernardino amending Section 5.04.525(D) of the San Bernardino Municipal Code and adding Section 5.04.525(H) to the San Bernardino Municipal Code relating to Business Registration fees based on gross receipts. Background: At the direction ofthe City Manager's Office, the City Clerk's Office analyzed the fiscal impact of placing a $10,000 cap on business registration fees for motor vehicle sales in the City of San Bernardino. In August of 2001 a survey of surrounding cities was conducted relating to fees charged to auto dealerships. Each city was contacted again in August 2006 and the rates have not changed, with the exception of Riverside, whose cap is adjusted annually according to the CPI. Survey results are attached as Exhibit #1. c Currently, there are 17 businesses categorized as "New Motor Vehicle Sales" and 43 businesses under the category of "Used Motor Vehicle Sales". The 43 businesses selling used vehicles would not be affected by a $10,000 cap. There would be 9 dealers selling new vehicles that would be affected should a cap be approved. It is proposed that the $10,000 cap be adjusted annually, upward or downward, equivalent to the most recent change in the annual average of the CPI or five percent, whichever is less. This change would become effective January 1, 2007. An amendment to Resolution 96-168, which sets Business Registration fees, will be brought forward to Council following the adoption of the proposed Ordinance. Financial Impact: Based on business registration fees paid during the last renewal period, business registration revenue will be reduced by $82,000. Recommendation: That said Ordinance by laid over for final adoption. c r c c c Business Registration Fee Data Car Dealerships August 17,2001 CITY FEE GROSS OF $41,000,000 I. Colton See Attachment # 1 $6,000 Has a cap of $6000 without caD $8,600 2. Fontana $50,000 or less $50 fee $10,287.50 More than $50,000 - $50 plus .25/ M (no cap) 3. Lorna Linda $15 processing fee plus .30 $12,315.00 per M (no cap) 4. Ontario .20 per thousand + $50 fee $8,250.00 (no cap) 5. Rancho Cucamonga See Attachment # 2 $6,019.25 (no cap) 6. Redlands $12 for 1" 5,000 $24,609.00 $3.00 per each additional $5,000 (no cap) 7. Rialto See Attachment #3 $10,250.00 (no cap) 8. Riverside $83.50 for 1st $50,000 $4.006.75 next 700,000 - .43/M $750,000 - .09/M Cap is $5,425.50 adj/w CPI To exceed cap gross would need to be over $56,000.000 9. San Bernardino .25 per thousand Minimum $10,250.00 $60.00 .It! c c c I ORDINANCE NO. 2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION 5.04.525(D) OF THE SAN BERNARDINO MUNICIPAL CODE AND ADDING SECTION 3 5.04.525(H) TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO BUSINESS REGISTRATION FEES BASED ON GROSS RECEIPTS. 4 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 5 BERNARDINO DO ORDAIN AS FOLLOWS: 6 7 8 9 10 II 12 13 SECTION 1. San Bernardino Municipal Code Chapter 5.04, Section 5.04.525(D) is amended to now read as follows: "D. Wholesale Sales and Telephone Companies. Every person, firm, or corporation conducting, carrying on or managing a business consisting principally of operating a telephone company, selling goods, wares or merchandise at wholesale, other than manufacturing and selling goods at wholesale; selling at wholesale hydrocarbon, lubricating oil or gasoline, and not otherwise specifically covered by other provisions ofthis Chapter, shall pay a fee established by resolution of the Mayor and Common Council." SECTION 2. San Bernardino Municipal Code Chapter 5.04, Section 5.04.525 is hereby 14 amended by adding subsection H at the end of said section to read as follows: 15 "H. Motor Vehicle Sales - New and Used. Every person, firm, or corporation conducting, carrying on, or managing a business consisting principally of selling 16 new and/or used motor vehicles, whether at retail or wholesale, including the sale of parts and services, and not covered by other provisions of this Chapter, 17 shall pay a fee established by resolution of the Mayor and Common Council." 18 I I I 19 I II 20 III 21 I I I 22 II I 23 III 24 I I I 25 I I I 26 III 27 I I I 28 III SDE/edlOrdinances[BusinessRegistration.Ord.wpd] r -, '- - '- - '- 24 25 26 27 28 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION 5.04.525(D) OF THE SAN BERNARDINO MUNICIPAL CODE AND ADDING SECTION 2 5.04.525(H) TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO BUSINESS REGISTRATION FEES BASED ON GROSS RECEIPTS. 3 4 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and 5 Common Council of the City of San Bernardino at a 6 of _, 2006, by the following vote, to wit: meeting thereof, held on the _ day 7 Council Members: AYES NAYS ABSTAIN ABSENT 8 ESTRADA 9 BAXTER 10 VACANT II DERRY 12 KELLEY 13 JOHNSON 14 MCCAMMACK 15 16 17 18 Rachel G. Clark, City Clerk The foregoing Ordinance is hereby approved this _ day of ,2006. 19 20 21 22 Patrick J. Morris, Mayor City of San Bernardino Approved as to Form: 23 James F. Pemnan, City Attorney SDE/ed/Ordinances[BusinessRegistration.Ord. wpd] 2 I ORDINANCE NO. 2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION 5.04.525(D) OF THE SAN BERNARDINO MUNICIPAL CODE AND ADDING SECTION 3 5.04.525(11) TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO BUSINESS REGISTRATION FEES BASED ON GROSS RECEIPTS. 4 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 5 BERNARDINO DO ORDAIN AS FOLLOWS: 6 SECTION 1. San Bernardino Municipal Code Chapter 5.04, Section 5.04.525(D) is 7 8 9 10 II 12 amended to now read as follows: "D. Wholesale Sales and Telephone Companies. Every person, firm, or corporation conducting, carrying on or managing a business consisting principally of operating a telephone company, selling goods, wares or merchandise at wholesale, other than manufacturing and selling goods at wholesale; selling at wholesale hydrocarbon, lubricating oil or gasoline, and not otherwise specifically covered by other provisions of this Chapter, shall pay a fee established by resolution of the Mayor and Common Council." 13 SECTION 2. San Bernardino Municipal Code Chapter 5.04, Section 5.04.525 is hereby 14 amended by adding subsection H at the end of said section to read as follows: 15 "H. Motor Vehicle Sales - New and Used. Every person, firm, or corporation conducting, carrying on, or managing a business consisting principally of selling 16 new and/or used motor vehicles, whether at retail or wholesale, including the sale of parts and services, and not covered by other provisions of this Chapter, 17 shall pay a fee established by resolution of the Mayor and Common Council." 18 1/ I 19 III 20 III 21 III 22 1/ I 23 1/ I 24 1/ I 25 III 26 III 27 III 28 III SDE/ed/Ordinances[BusinessRegistration.Ord.wpd] No,J~ q}/~06 19 20 21 22 23 24 25 26 27 28 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION 5.04.525(D) OF THE SAN BERNARDINO MUNICIPAL CODE AND ADDING SECTION 2 5.04.525(H) TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO BUSINESS REGISTRATION FEES BASED ON GROSS RECEIPTS. 3 4 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and 5 Common Council of the City of San Bernardino at a 6 of _, 2006, by the following vote, to wit: meeting thereof, held on the _ day 7 Council Members: AYES NAYS ABSTAIN ABSENT 8 ESTRADA 9 BAXTER 10 VACANT 11 DERRY 12 KELLEY 13 JOHNSON 14 MCCAMMACK 15 16 17 18 Rachel G. Clark, City Clerk The foregoing Ordinance is hereby approved this _ day of ,2006. Patrick J. Morris, Mayor City of San Bernardino Approved as to Form: e es F. Penman, City Attorney SDE/ed/Ordinances[BusinessRegistration.Ord.wpd] 2