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RESOLUTION (ID #3279) DOC ID: 3279 A
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Fees
I
From: Allen Parker M/CC Meeting Date: 06/16/2014
Prepared by: Chris Lopez, (909) 384-5122
Dept: City Manager Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Setting the 2014
Regulatory Fee for the Sale of Fireworks. (#3279)
Current Business Registration Certificate: Not Applicable
Financial Impact:
The regulatory fee revenue for this season is estimated to be$69,000. This revenue will be used
to offset the City's costs for awareness, education, and enforcement of the Municipal Code.
Account Description: <<Insert Account Description
Balance as of: <<Insert Date>>
Balance after approval of this item: <<Insert Amount>>
Please note this balance does not indicate available funding. It does not include non-encumbered
reoccurring expenses or expenses incurred,but not yet processed.
Motion: Adopt the Resolution.
SYNOPSIS OF PREVIOUS COUNCIL ACTION:
June 4, 2014- The Ways and Means Committee recommended that this item be forwarded to the
June 16, 2014 Mayor and Common Council Meeting.
June 17, 2013- The Mayor and Common Council adopted Urgency Ordinance MC-1390
amending San Bernardino Municipal Code Section 8.60.095 regarding regulatory fees for the
sale of fireworks.
June 18, 2012 -The Mayor and Common Council adopted resolution 2012-113 setting the 2012
Regulatory Fee.
June 6, 2011 -The Mayor and Common Council adopted resolution 2011-129 setting the 2011
Regulatory Fee.
May 16, 2011 -Mayor and Common Council continued item to June 6,2011 meeting.
May 4, 2011 -The Ways and Means Committee recommended item be brought forward to
Mayor and Common Council.
June 30, 2010 -The Mayor and Common Council adopted resolution 2010-216 setting the 2010
Regulatory Fee.
Updated: 6/12/2014 by Linda Sutherland A Packet Pg. 101
3279
BACKGROUND
The City of San Bernardino permits the retail sale of fireworks in all areas south of the I-210
Freeway. Licensees and fireworks suppliers are required to pay a regulatory fee, which is set
annually by the Mayor and Common Council. The purpose of the regulatory fee is to raise
sufficient funds to pay for fireworks education, fireworks safety awareness campaign, and
enforcing the provisions of the Municipal Code.
The regulatory fee is based on the gross sales of all fireworks sold in the City. The Finance
Department proposes the amount of the regulatory fee based on the licensee's fireworks sales
financial statements from the prior year. Each licensee is required to submit fireworks sales
financial statements to the City Clerk's Office no later than August 31. One half of the regulatory
fee is to be paid by the licensee and the remaining half is to be paid by the fireworks supplier. In
accordance with Section 8.60.095(B) of the Municipal Code, the regulatory fee rate may not
exceed more than 10 percent of the total gross sales of fireworks sold in the City during the prior
year. This regulatory fee rate must be adopted by the Mayor and Common Council no later than
7:00 p.m. on July 1, as provided for in Section 8.60.095(B) of the Municipal Code.
Each year,prior to imposing a fee, staff prepares a study of the anticipated costs associated with
education, awareness, and enforcement of the Municipal Code. Exhibit A provides an
assessment, itemized by department, of the costs associated with fireworks sales including the
staff time incurred by the Police Department, Fire Department, City Clerk's Office, and the
public education and outreach component. The total estimated cost associated with sale of
fireworks in the City is $94,998. The estimated revenue collection this year is $69,000. The fee
cannot exceed more than 10% and it also cannot exceed the city's actual costs. It is anticipated
that the costs associated with the sale of fireworks will exceed fees collected by$25,998 this
year.
At the direction of the Ways and Means Committee, attached is a document that illustrates the
fee revenue from fireworks sales, and estimated expenditures for fireworks education and
enforcement of the provisions of the Municipal Code from the last 5 years.
City Attorney Review:
Supporting Documents:
reso 3279 (PDF)
Exhibit A (PDF)
Revenue and Expenditure-5 Years (PDF)
Updated:6/12/2014 by Linda Sutherland A Packet Pg. 102
1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO SETTING THE 2014 REGULATORY FEE FOR THE SALE OF
3 FIREWORKS.
4 WHEREAS, on July 1, 2013, the Mayor and Common Council adopted an
5
6 urgency ordinance amending Section 8.60.095 of the San Bernardino Municipal Code,
7 requiring half of the fireworks regulatory fee to be paid by the licensee (the non-profit) and
8 half to be paid by the fireworks company that supplies the product; and L
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9 WHEREAS,prior to imposing the fee, the City is required to prepare a study of the '
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10 anticipated costs associated with fireworks education, awareness, and enforcement; and 0
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11 N
WHEREAS,the City has prepared a study of the anticipated costs for fireworks w
12 0
education, awareness and enforcement for the 2014 season, a copy of which is attached hereto w
13 ,_
14 as Exhibit"A"and by reference made a part hereof. o
15 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
16
17 SECTION 1. That the Mayor and Common Council of the City of San Bernardino M
18 has determined that the total anticipated costs for the City to provide services to support the M
0
19 sale of fireworks for the 2014 season has been calculated to be $94,998.00.
20
E
21 SECTION 2. The Finance Department shall determine the proportion of the
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22 regulatory fee owed to the City based on the licensee's fireworks sales financial statements. Q
23 The regulatory fee charged by the City shall not exceed 10% of the total gross sales of the
24
fireworks sold in the City by the licensee.
25
26 SECTION 3. This fee shall take effect upon the adoption of this resolution.
oe 27
28 IlI
Packet Pg. 103
1 L T N
RESO U IO OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
2 SAN BERNARDINO SETTING THE 2014 REGULATORY FEE FOR THE SALE OF
FIREWORKS.
3
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
5 and Common Council of the City of San Bernardino at a meeting thereof,
6 held on the day of , 2014, by the following vote, to wit:
7
Council Members: AYES NAYS ABSTAIN ABSENT
8 �
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9 MARQUEZ
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10 BARRIOS o
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11 VALDIVIA
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SHORETT
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14 NICKEL o
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15 JOHNSON
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16 MULVIHILL
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Georgeann Hanna, City Clerk N
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20 The foregoing resolution is hereby approved this day of
, 2014. E
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22 a
R. CAREY DAVIS, Mayor
23 City of San Bernardino
Approved as to Form:
24 GARY D. SAENZ, City Attorney
25
26 By:
27
28
Fpacket Pg. 104
5.F.b
Fireworks 2014 Exhibit A
Expenditure Estimates
Department Fringe Benefits/
Labor/Time Overhead Total
Police
July 2 personnel 11,494.98 1,370.77 $ 12,866
July 3 personnel 11,494.98 1,370.77 $ 12,866
July 4 personnel 11,494.98 1,370.77 $ 12,866
July 5 personnel 11,494.98 1,370.77 $ 12,866
Equipment/vehicles $ 19872
U ire Department
June 30th personnel $ 358 1 $ 56 $ 414
July 1 personnel $ - $ - $ -
N
July 2 personnel $ 811 $ 128 $ 939
July 3 personnel $ 2,845 $ 449 $ 3,294
3
July 4 personnel $ 5,295 $ 835 $ 6,130
July 5 personnel $ 1,053 $ 166 $ 1,219 4-
Fire Prevention Technician $ 1,692 $ 267 $ 1,959
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i Business Registration Representative $ 1,829 $ 757 $ 2,586
Business Registration Manager $ 978 $ 451 $ 1,429 0
Materials(postage,printing,stationery) $ 72 a)
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Public Education o
BPC(Black Voice News) June 21-July 4;7"x 4"ad $ 1,000 0
Enterprise Media-Press Enterprise June 21-July 4;3"x 5"ad $ 1,760
Enterprise Media-La Prensa June 27-July 4: one week ad,half page
a
El Chicano Weekly June 26-July 3:4"x 7"two week ad $ 336
SB County Sun June 20-July 4:2 week ad(15 days);62,000 h
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publications in circulation;online ad(14 days y
through the week of July 4) $ 3,385 B
Westside Story News June 19-July 3: 1/2 page,2 week ad $ 816
Out of the Box-flyers and posters 16,000 flyers;500 posters $ 2,118 F
Radio Laser June 23-July 6: 60 spots during prime time w
listening hours(30 seconds-Spanish) $ 2,000
Radio Ads-La Maquina 100.9 June 23-July 4:60 spots,30 second ads $ 720 v
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Radio Ads-KCXX IJune 23-July 4: 113 spots, 15 second ads $ 3,000
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Total Service Direct Cost $ 86,511 Q
Gen.&Admin.Rate @ 9.81% $ 8,487
Total Service Cost $ 94,998
Summary of I
Police Department $ 53,335
Fire Department $ 13,954
City Clerk's Office $ 4,086
Public Education Total $ 15,135
Total Service Direct Cost $ 86,511
Gen.&Admin.Rate @ 9.81% $ 8,487
Total Service Cost $ 94,998
Packet Pg. 105
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Fireworks Enforcement Expenditures and Revenues
Estimated Fireworks Enforcement Expenditures
$100,000 $94,998
$90,000 $80,834
$73,722
$80,000 $72,162
$69,500 $71,899
c $70,000
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Q $60,000 °
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$50,000 Total Enforcement Estimated LL
Expenditures
M $40,000 Linear(Total Enforcement T
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X $30,000 Estimated Expenditures)
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$20,000
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$10,000 a)
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$0 °
2009 2010 2011 2012 2013 2014 5
Year
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Fireworks Fee Revenues
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$80,000 -_
$67,233 $65,756 $69,838 $68,126 $65,166
$70,000 — 0
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$60,000
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$49,440
o $50,000
v $40,000 Total Fireworks Fee Revenues aa)
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$30,000
> Linear(Total Fireworks Fee ,
$20,000
Revenues) a)
$10,000
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$0 Q
2009 2010 2011 2012 2013 2014
Year
Packet Pg. 106