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HomeMy WebLinkAbout05.C- City Manager 5.0 RESOLUTION (ID # 4463) DOC ID: 4463 A CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Agreement/Contract From: Mark Scott M/CC Meeting Date: 06/20/2016 Prepared by: Tanya Romo, (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 2016 Regulatory Fee for the Sale of Fireworks. (#4463) Current Business Registration Certificate: Not Applicable Financial Impact: The regulatory fee revenue for this season is estimated to be $68,500. This revenue will be used to offset the City's costs for enforcement of the Municipal Code. Motion: Adopt the Resolution. SYNOPSIS OF PREVIOUS COUNCIL ACTION: June 30, 2015- The Mayor and Common Council adopted Resolution 2015-131 setting lopwk It the 2015 Regulatory Fee. January 20, 2015- The Mayor and Common Council continued the item. June 16, 2014- The Mayor and Common Council adopted Resolution 2014-160 setting the 2014 Regulatory Fee. June 4, 2014- The Ways and Means Committee recommended that this item be forwarded to the June 16, 2014 Mayor and Common Council Meeting. 1 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. Updated: 6/13/2016 by Jolena E. Grider A Packet Pg.46 1 5.0 4463 June 30, 2010 - The Mayor and Common Council adopted resolution 2010-216 setting the 2010 Regulatory Fee. BACKGROUND The City of San Bernardino permits the retail sale of fireworks in all areas south of the 1- 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 (Exhibit A) 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 $81,195. The estimated revenue collection this year is $68,500. The fee cannot exceed more than 12% 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 $12,695 this year. City Attorney Review: Supporting Documents: Fireworks Regulatory Fee Reso 2016 (DOCX) 2016 Yearly Fireworks Cost Estimates Exhibit A (PDF) Updated: 6/13/2016 by Jolena E. Grider A Packet Pg.47 5.C.a RESOLUTION NO. 1 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO SETTING THE 2016 REGULATORY FEE FOR THE SALE OF 3 FIREWORKS. 4 WHEREAS, on June 15, 2009, the Mayor and Common Council adopted an urgency d d U. 5 ordinance amending Section 8.60.095 of the San Bernardino Municipal Code, requiring half o 6 of the fireworks regulatory fee to be paid by the licensee (the non-profit) and half to be paid 7 o! 8 by the fireworks company that supplies the product; and c 9 WHEREAS, prior to imposing the fee, the City is required to prepare a study of the 2 i% 10 anticipated costs associated with fireworks education, awareness, and enforcement. N (D 11 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON r 12 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: N 13 14 SECTION 1. That the Mayor and Common Council of the City of San Bernardino 15 has determined that the total anticipated costs for the City to provide services to support the N 16 sale of fireworks for the 2016 season has been calculated at$81,195. 17 LL 18 SECTION 2. The Finance Department shall determine the proportion of the c M 19 regulatory fee owed to the City based on the licensee's fireworks sales financial statements. d 20 The regulatory fee charged by the City shall not exceed 12% of the total gross sales of the Y 0 21 fireworks sold in the City by the licensee. d 22 "" SECTION 3. This fee shall take effect upon the adoption of this Resolution. 23 E 24 w 25 a 26 27 28 1 Packet Pg. 48 5.C.a 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 2 SAN BERNARDINO SETTING THE 2016 REGULATORY FEE FOR THE SALE OF FIREWORKS. 3 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor 4 and Common Council of the City of San Bernardino at a meeting U- 5 �% 6 thereof, held on the day of , 2016,by the following vote, to wit: a� 7 Council Members: AYES NAYS ABSTAIN ABSENT i 8 MARQUEZ 9 U. BARRIOS 10 N 11 VALDIVIA 12 SHORETT r 13 NICKEL M 14 RICHARD 15 0 MULVILHILL o 16 17 18 Georgeann Hanna, CMC, City Clerk it 0 �a 19 The foregoing resolution is hereby approved this day of , 2016. 20 U) L 21 3 R. Carey Davis, Mayor 22 City of San Bernardino w 23 Approved as to form: 24 Gary D. Saenz, City Attorney a 25 By: 26 27 28 2 Packet Pg.49 5.C.b Fireworks 2016 Exhibit A Expenditure Estimates Overhead Fringe Benefits/ Police Department July 2 personnel $ 11,494 $ 1,329 $ 12,812 July 3 personnel $ 11,494 $ 1,329 $ 12,812 ti July 4 personnel $ 11,494 $ 1,329 $ 12,812 0 July 5 personnel $ 11,145 $ 1,329 $ 12,812 3 m Fire Department L May-June Safety Awareness $ 2,023 $ 319 $ 2,342 3 W L LL City Clerk's t0 Office O Business Registration Representative $ 1,829 $ 757 $ 2,586 N a� Business Registration Manager 978 451 1,429 Materials(postage,printing,stationery) 72 c d Yublic Education N Enterprise Media-Press Enterprise `o June 22-July 4:3"x5"ad(English) $ 780 v Inland Newspaper Group(San Bernardino June 20-July 4:Newspaper print ads-4 1/4 page County Sun Newspaper) B&W ads 6/20-7/4;Mobile advertising-75,000 Q digital 300x250 ad impression on-line 6/20- 6/30;E-edition paid subscribers;On-line 14 x w consecutive days 2,640 Out of the Box-flyers&posters 8,000 flyers,750 posters,40,000 water bill inserts 3,095 E Ul Inland Empire 66ERS Baseball Club(San June-July 4:Digital display board,5 seconds w Manuel Stadium) once every 15 minutes 500 v San Bernardino Municipal Water 40,000 water bill inserts,3-5/8"x8"flyers, Y Department 6/1/15-6/29/15 2,000 0 Radio ads-California State University June 5-July 4: 300 spots,30 seconds,average of d (Coyote Radio) 10 plays per day 250 UL Radio Laser KXSB 101.7FM/KCAL y' June 29-July 5: 56 spots,30 seconds during 1410AM prime time listening hours(Spanish) 1,000 Radio ads-Iheart Media(KGGI 99.1 FM, (English&Spanish);internet streaming& (° 0 KKDD AM) online digital ads 2,500 N Radio ads Casa Media(La Maquina KAEH- June 22-July 4:71 spots,30 second ads FM) (Spanish) 1,000 E Radio ads-KCXXFM June 23-July 4: 86 spots, 15 second ads; 160 internet streaming spots 2,500 j Q Total Service Direct Cost 73,942 Gen.&Admin.Rate @ 9.81% 7,254 Total Service Cost $ 81,195 Packet Pg. 50 5.C.b Fireworks 2016 Exhibit A Expenditure Estimates Z, d LL Summary of 2016 Costs Total c Police Department $ 51,248 1° Fire Department 2,342 City Clerk's Office 4,086 N Public Education Total 16,265 Y L O Total Service Direct Cost 73,942 d Gen.&Admin.Rate @ 9.81% 7,254 2 LL W Total Service Cost $ 81,195 0 N d a.+ C 'a+ d N M tD d' Q L X w d y E V W W N O y L O L LL L M T- 0 N W E U N w r-+ Q Packet Pg. 51