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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
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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
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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.
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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
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5 ordinance amending Section 8.60.095 of the San Bernardino Municipal Code, requiring half o
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of the fireworks regulatory fee to be paid by the licensee (the non-profit) and half to be paid
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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
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10 anticipated costs associated with fireworks education, awareness, and enforcement. N
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NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON r
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COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: N
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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
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sale of fireworks for the 2016 season has been calculated at$81,195.
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18 SECTION 2. The Finance Department shall determine the proportion of the c
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19 regulatory fee owed to the City based on the licensee's fireworks sales financial statements.
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20 The regulatory fee charged by the City shall not exceed 12% of the total gross sales of the Y
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21 fireworks sold in the City by the licensee. d
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SECTION 3. This fee shall take effect upon the adoption of this Resolution.
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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
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and Common Council of the City of San Bernardino at a meeting U-
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6 thereof, held on the day of , 2016,by the following vote, to wit:
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7 Council Members: AYES NAYS ABSTAIN ABSENT
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8 MARQUEZ
9 U.
BARRIOS
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11 VALDIVIA
12 SHORETT r
13 NICKEL M
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RICHARD
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MULVILHILL o
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18 Georgeann Hanna, CMC, City Clerk it
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19 The foregoing resolution is hereby approved this day of , 2016.
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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:
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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
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Fire Department
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May-June Safety Awareness $ 2,023 $ 319 $ 2,342 3
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City Clerk's t0
Office
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Business Registration Representative $ 1,829 $ 757 $ 2,586 N
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Business Registration Manager 978 451 1,429
Materials(postage,printing,stationery) 72 c
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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
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consecutive days 2,640
Out of the Box-flyers&posters 8,000 flyers,750 posters,40,000 water bill
inserts 3,095 E
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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& (°
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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
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5.C.b
Fireworks 2016 Exhibit A
Expenditure Estimates
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Summary of 2016 Costs Total c
Police Department $ 51,248 1°
Fire Department 2,342
City Clerk's Office 4,086
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Public Education Total 16,265 Y
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Total Service Direct Cost 73,942 d
Gen.&Admin.Rate @ 9.81% 7,254 2
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Total Service Cost $ 81,195
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