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1 ORDINANCE NO.
2 ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SUBSECTION
5.04.525F REQUIRING A BUSINESS LICENSE FOR LEASING OR RENTING
3 RESIDENTIAL PROPERTY AND REPEALING SECTION 5.04.355 REGARDING
ASTROLOGY, PALMISTRY AND PHRENOLOGY.
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THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
5 DO ORDAIN AS FOLLOWS:
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SECTION 1.
Subsection 5.04.525F of the San Bernardino
7 Municipal Code is amended as follows:
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Leasing.
managing, or carrying on the business of leasing or renting
"F. Commercial, Industrial and Residential Rental or
Every person, firm or corporation conducting,
commercial or industrial buildings or spaces, where the
buildings or spaces are to be utilized for any business
purpose including but not limited to retail sales, offices
and suites or other business rentals including mini-
storage; or operating a hotel, roominghouse, lodginghouse,
boardinghouse, apartment house, court motel, mobile home
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park; or leasing or renting any residential dwelling units
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including single family homes, shall obtain a business
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license and pay a fee in accordance with the following
table based on annual gross receipts:
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Annual gross
Less than
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
50,000.00
55,000.00
60,000.00
65,000.00
70,000.00
75,000.00
80,000.00
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PZ/dys
October 4, 1989
receipts
25,000.00
to 29,999.99
to 34,999.99
to 39,999.99
to 44,999.99
to 49,999.99
to 54,999.99
to 59,999.99
to 64,999.99
to 69,999.99
to 74,999.99
to 79,999.99
to 84,999.99
License fee per year
60.00
70.00
80.00
90.00
100.00
110.00
120.00
130.00
140.00
150.00
160.00
170.00
180.00
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City Attorney
DRAfT
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85,000.00
90,000.00
95,000.00
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190.00
200.00
210.00
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to
to
to
89,999.99
94,999.99
100,000.00
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If annual gross receipts exceed one hundred thousand
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dollars, the annual license fee is two hundred ten dollars,
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plus fifty cents for each one thousand dollars or major
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fraction thereof of annual gross receipts in excess of one
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hundred thousand dollars of such gross receipts.
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The intent of this section is to require a license for
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the business of leasing or renting commercial or industrial
buildings, for leasing or renting offices or suites or
other business rentals, and for leasing or renting dwelling
units.
For the leasing or renting of dwelling units a
separate license shall be required for each building unless
the ownership of the building is divided as provided in
Government Code Section 66426 and Section 66427 as a
condominium, community apartment project or stock
cooperative project, and then a separate license shall be
required for each such division.
Said license shall be good for two (2) years.
Buildings with even number street addresses shall renew on
even numbered years and buildings with odd number street
addresses shall renew on odd numbered years.
It shall be unlawful for any property owner, landlord,
manager or agent to demand, accept, receive or retain any
payment of rent if the building for which the rent is paid
is unlicensed under this section. Any person violating any
of the provisions, or failing to comply with any of the
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October 4, 1989
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City AttorrlGY
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requirements of this section, shall be guilty of a
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misdemeanor."
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SECTION 2.
Section 5.04.355 of the San Bernardino
4 Municipal Code is hereby repealed.
5 I HEREBY CERTIFY that the foregoing ordinance was duly
6 adopted by the Mayor and Common Council of the City of San
7 Bernardino at a meeting thereof, held on the
8 day of , 1989, by the following vote, to wit:
9 AYES: Council Members
NAYS:
ABSENT:
City Clerk
The foregoing ordinance is hereby approved this
day
of
, 1989.
W. R. Holcomb, Mayor
20 City of San Bernardino
21 Approved as to form
and legal content:
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JAMES F. PENMAN,
23 City Attorney
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By:
City AttUH ,4;;j
DRAFT
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October 4, 1989
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REVENUE ENHANCEMENT REPORT
CITY CLERK'S OFFICE
OCTOBER 1, 1989
TRANSIENT OCCUPANCY TAX
Remove 30 Day Resident Tax Exemption
Net: 5153.414
Under present codes, a person residing in a hotel/motel for
30 days or longer is exempt from transient occupancy tax.
Recommendation: Amend code to remove this exemption. Based
on what would have been collected July, August, September,
1989, our projections are a net of $153,414 per year. No
additional staff or equipment is necessary. Cost of code
change only.
Implementation: Amend Municipal Code.
Audit Transient Occupancy Tax Receipts
Net:
510.000
The City Clerk's Office has not audited transient occupancy
tax accounts for a few years and might find some that are
holding out on us. Based on the information we have on
where Duffy Street residents were housed, we have a good
idea on where to begin auditing. There are approximately 46
accounts.
Implementation: Include this audit with business license
audit to be recommended, or perform the audit using existing
staff at no additional cost to the City.
BUSINESS LICENSES
Upgrade Classifications. Adjust Prices
Net: 5120.000
There are many flat rate businesses license fees that have
not been upgraded recently. The last comprehensive upgrade
was done in 1986 and at that time, several categories were
not touched. For example: billboards advertisers pay $100
per year. This rate was established in 1920. Considering
the impact the billboards have on what we are trying to
accomplish for this city, the rates should be raised.
Business License Supervisor Lee Gagnon has been collecting
ordinances from other cities and is working on a schedule to
upgrade flat rate business license fees.
Implementation: 1. Business License
schedule of proposed rate increases.
change.
Division completes
2. Municipal Code
Revenue Enhancement Report
October 1, 1989
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Raise Minimum Business License Rate
Net: $85.180
From 1920 to 1983 the minimum rate for a gross receipts
business license was $30.00 per year. In 1984, the rate was
raised to $40.00 per year, our current rate. Jane Sneddon
of our office has suggested raising that rate to $60.00 per
year. This would incur no additional cost to our
department and will resul t in increased revenue of
approximately $85,180. The only cost incurred by the city
will be the cost of preparing the code changes and changing
the rate schedule in the city computer.
Implementation: Amend Municipal Code.
License Single Family Rental Units
Net: $362.000
Dr. John Husing has recommended charging a business license
for each single family dwelling or multi dwelling, three or
less. Presently we charge for four or more on the same
parcel or on contiguous parcels. Riverside has a single
family rental ordinance and charges $55.00 for a license.
According to Manuel Moreno, Jr., we have 35,000 single
family refuse accounts. If 20% of those accounts are
rentals, we are looking at 7000 certificates of occupancy
and business licenses. The present rate for those licenses
would be $40. If the minimum rate were raised to $60.00 as
recommended above, the revenue for business licenses would
be: $420,000.
There would be costs involved in this endeavor due to the
administration and enforcement. Presently we have a staff
of a Supervisor, three Inspectors, and three Account Clerks,
collecting and enforcing 9000+ accounts and bringing in
$3,964,000 in revenue. Single family rentals would be low
yield accounts with a lot of enforcement and collection. I
recommend two-year business license, rather than quarterly,
to reduce billing and collection costs. Even numbered
addresses would be renewed in even years, and odd numbered
addresses renewed in odd years. First year, every one gets
either a one year license or two year license depending on
last number of address.
Note: The Mayor is not in favor of a certificate of
occupancy requirement.
Implementation: 1. Amend municipal code. 2. Authorize
hiring of an additional business license inspector and
account clerk for the purpose of finding these accounts and
getting them licensed. ($43,000) 3. Authorize hiring of
addi tional Building and Safety inspector to follow up on
certificates of occupancy (straight cost recovery - they
charge for c/o's). 4. Conduct education program to notify
property owners of license requirements. ($15,000
estimate) .
Revenue Enhancement Report
October 1, 1989
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Fast Food Rate Differential
Net: 8200.000
Mayor Bob has suggested a rate differential for "fast food"
establishments that contribute to the litter problem. I n
order to raise the $200,000 the Mayor has requested, the
rates for certain restaurants, bakeries (doughnut shops),
liquor stores, and smaller grocery stores, would have to be
raised significantly. We have prepared the rate schedules
necessary to achieve the $200,000.
Implementation: Amend the Municipal Code.
Audit Business Licenses
Net: 850.000
Periodically the City Clerk's Office audits gross receipts
business licenses. Our returns on these audits are
diminishing with the frequency of audits. However, an audit
has not been conducted for two years and we are willing to
perform another one.
Implementation: Authorize approximately $10,000 for the
hiring of student interns to conduct the audit.
UTILITY TAX
Audit: I believe there are residents of the City who are
not paying utility tax for every utility that is taxable. I
have no idea how much money is involved, but it would not
cost much to do an audit if we have cooperation from the
utility companies.
AREA TAX
Ann Harris has asked me to look at ways we can get more
revenue for Main Street and the downtown area. By legal
opinion, we have not been able to license banks and
insurance brokerages, which also means they do not pay area
tax. Lee Gagnon discovered that San Francisco got around
this by creating a "personnel tax" levied on banks. We are
looking into this with the assistance of the City
Attorney's Office. At this time, we have no estimated
revenue to offer, we just wanted to make you aware that we
are looking into the situation.
COST RECOVERY
LIENS: The City Clerk's Office does administrative work on
liens imposed by the City. Though the departments involved:
Building and Safety, Public Buildings, and Public Services,
charge for overhead, only Public Services reimburses us
for our costs.
Revenue Enhancement Report
October 1, 1989
ASSESSMENT DISTRICTS: Engineering processes Assessment
Districts, however, the City Clerk's Office must file,
certify and record assessment maps, incurring costs and
using administrative time. It is proposed that our costs be
added on to the cost of the assessment; passed down to the
parcels and reimbursed to us.
APPEAL FEES: In general, I believe that the Mayor and
Council should impose a fee on abatements appealed to the
Mayor and Council level. The fee should be approximately
$75.00 and should be refunded to successful appellants.
I have not included amounts on the above items because these are
not revenue enhancers in the true sense.
TOTAL REVENUE:
The net total for increased revenue is:
S 980.594
SHAUNA CLARK, CITY CLERK
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