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Home My WebLink AboutItem No. 03 - Setting the 2020 Regulatory Fee Rate for the Sale of "Safe and Sane" Fireworks Staff Report City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager Subject: Setting the 2020 Regulatory Fee Rate for the Sale of Fireworks Recommendation Adopt Resolution No. 2020-130 of the Mayor and City Council of the City of San Bernardino, California, setting the 2020 Regulatory Fee for the sale of "safe and sane" fireworks in the City of San Bernardino. Background The City of San Bernardino is one (1) of nine (9) municipalities in the County of San Bernardino that allow for the sale, possession, and discharge of fireworks designated as fireworks are permitted in all areas south of the 210 Freeway in the City of San stth Bernardino (Exhibit A) during the prescribed time frames of July 1 through July 4. On September 11, 2019, the Legislative Review Committee (LRC) convened to consider the regulation, sale, possession, and discharge of fireworks in the City. Following public comment and discussion, a majority of the members of the LRC voted to direct staff to place an item on the agenda for a future meeting of the Mayor and City Council to consider amending the Municipal Code to: Adopt an enhanced penalty structure for fireworks; and Establish a fund consisting of fines collected from fireworks violations to be used to pay a reward in the amount of $250 to any individual providing information leading to the identification and successful criminal or civil prosecution of any person violating the City of San Bernardino Municipal Code related to the unlawful possession, sale, or discharge of fireworks. The recommendations of the LRC were presented to the Mayor and City Council on November 4, 2019. Following review and discussion, the Mayor and City Council gave -1535, amending Chapters 8.60 and 8.61 and Chapter 9.93 of the San Bernardino Municipal Code, pertaining to the use of fireworks within city limits was presented for first reading on April 15, 2020, and adopted on May 6, 2020. The ordinance became effective 30 days thereafter. Page 1 6771 established annually by the Mayor and City Council based on the gross sales of all fireworks sold in the City. The purpose of the regulatory fee is to raise funds to cover the reasonable regulatory costs of issuing the permits and enforcing the provisions of the Municipal Code, including extra personnel time for inspection and enforcement duties. Discussion financial statements from the prior year. Each licensee is required to submit fireworks year. 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 shall not exceed more than ten (10) percent of the total gross sales of fireworks sold in the City during the prescribed timeframes (July stth 1 through July 4). Each year, prior to imposing a fee, staff prepares a study (Exhibit B) of the anticipated costs associated with the reasonable regulatory costs of issuing the permits and enforcing the provisions of the Municipal Code, including extra personnel time for inspection and enforcement duties. Exhibit B provides an assessment, itemized by department, of the costs associated with fireworks sales; including the staff time incurred by the Police Department, Finance Department for Business Registration and other related costs. This regulatory fee rate must be adopted by the Mayor and City Council no later than 7:00 p.m. on July 1, as provided for in Section 8.60.095(B) of the Municipal Code. 2020-2025 Key Strategic Targets and Goals Revenue received from the 2020 Regulatory Fee Rate of 10% for the sale of fireworks aligns with Key Target No. 1: Financial Stability, by implementing, maintaining, and updating a fiscal accountability plan. Fiscal Impact The total estimated cost associated with the regulation and enforcement of the sale of "safe and sane" fireworks in the City this year is $68,916.83. The regulatory fee based upon 10% of the gross sales of all fireworks sold in the City in 2019 in accordance with Section 8.60.095(B) of the Municipal Code is $68,700.83. Conclusion It is recommended that Resolution No. 2020-130 of the Mayor and City Council of the City of San Bernardino, California, setting the 2020 Regulatory Fee for the sale of "safe and sane" fireworks in the City of San Bernardino be adopted. Attachments Attachment 1 - - Estimate of Expenditures for 2020 Page 2 6771 Ward: All Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019-86 setting the regulatory fee at 10%. Page 3 RESOLUTION NO. 2020-130 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, SETTING THE 2020 REGULATORY FEE FOR THE SALE OF SAFE AND SANE FIREWORKS IN THE CITY OF SAN BERNARDINO WHEREAS, on June 15, 2009, the Mayor and Common Council adopted an urgency ordinance amending Section 8.60.095 of the San Bernardino Municipal Code, requiring half of the fireworks regulatory fee to be paid by the licensee (the non-profit) and half to be paid by the fireworks company that supplies the product; and WHEREAS, On July 1, 2013, the Mayor and City Council adopted an urgency ordinance amending Section 8.60.095 of the San Bernardino Municipal Code, requiring the regulatory fee be set no later than 7:00 p.m. on July 1 of each year; and WHEREAS, prior to imposing the fee, the City is required to prepare a study of the anticipated costs associated with fireworks education, awareness, and enforcement. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. That the Mayor and City Council of the City of San Bernardino, California, have determined that the total anticipated costs for the City to cover the reasonable regulatory costs of issuing the permits and enforcing the provisions of the Municipal Code, including extra personnel time for inspection and enforcement duties, for the 2020 season has been calculated at $68,916.27. SECTION 2. Section 8.60.095 (B) of regulatory fee rate not exceed more than 10% of the gross sales of fireworks sold in the City during the prior year. SECTION 3. In the 2019 fireworks season, 10% of the total gross sales of fireworks as reported by the licensees amounted to $68,700.83. SECTION 4. The Mayor and City Council hereby set a regulatory fee rate of 10%. SECTION 5. The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Resolution No. 2020-130 SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 7. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested th by the City Clerk this 17 day of June 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney Resolution No. 2020-130 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-130, adopted at a regular meeting held on the 17th day of June 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 17th day of June 2020. Genoveva Rocha, CMC, Acting City Clerk Fireworks 2020 Expenditure Estimates Number of personnel Labor Cost Total Police Department June 30 personnel6$ 2,954.88 July 1 personnel62,954.88 July 2 personnel 62,954.88 July 3 personnel 3415,696.36 July 4 personnel 3415,696.36 July 5 personnel 94,446.00 Total $ 44,703.36$44,703.36 Finance Department Business Registration Representative1$ 3,403.21 Business Registration Manager12,309.70 Total $ 5,712.91$5,712.91 Public Education & Awareness Related to Regulatory Enforcement Public education and awareness through advertising, social media and community contact in relation to the regulation. Funding includes postage, printing, materials and supplies for public education on permitting and enforcement of the regulatory scheme.$18,500.00 Total Expenditure Estimates $68,916.27