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Home My WebLink About23-City Clerk -w ..... CIT'Y'OF SAN BERNg.DINO - REQUEST POI COUNCIL ACTION . . ,,' .... From: Rachel Krasney, City Clerk Subject: Ordinance of the City of San Bernardino AIIlending Chapter 5.04 of the San Bernardino Municipal Code relating to Business Registration Certificates. Dept: City Clerk's Office Date: December 5, 1991 Synopsis of Previous Council action: 11/21/91: Legislative Review Committee approved (2 to 1) the attached proposal to change designation of "Business License" to "Business Registration Certificate" and reaoval of Certificate of Occupancy requirement from Business Registriation Certificate process. Recommended motion: To approve City Clerk's proposal to change designation of "Business License" to "Business Registration Certificate"; authorize the City Clerk to take necessary action to iJDplement the change; and that the Ordinance amending Chapter 5.04 of the San Bernardino Municipal Code relating to Business Registration Certificates be laid over for final adoption. G(~~ Contact person: Rachel Krasnev Phone: 5102 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: S4 101 q." Source: (Acct. No.) 001-033-53016 (Acct. DescriPtion) Printing Charges Finance: Council Notes: - 7c;,_n~ft7 Agenda Item No ~3 J~ - ... ~~TY .OF SAN BeRNAC)DINO - ReQUEST F~ COUNCIL ACTION STAFF REPORT FROM: Honorable Mayor and Members of the City Council Rachel Krasney, City Clerk November 22, 1991 TO: DATE: SUBJECT: REQUEST FOR COUNCIL ACTION AT MEETING OF DECEMBER 16, 1991 RE PROPOSAL TO CHANGE DESIGNATION OF "BUSINESS LICENSE" TO "BUSINESS REGISTRATION CERTIFICATE" AND REMOVAL OF CERTIFICATE OF OCCUPANCY REQUIREMENT FROM BUSINESS REGISTRATION CERTIFICATE PROCESS ----------------------------------------------------------------- At the November 21, 1991 meeting of the Legislative Review Committee, the attached proposal to change the designation of "Business License" to "Business Registration Certificate" and removal of the certificate of occupancy requirement from the Business Registration Certificate Process was approved by a vote of two to one. As outlined in the attached report to the Legislative Review Committee, our experience in the past has been that oftentimes when a new business owner obtains a "business license" the owner mistakenly believes that no other permits are needed. Yet, there may be other steps to be taken to comply fully with other requirements imposed by other levels of government. By changing the designation from "business license" to "Business Registration Certificate" we will more clearly define the document which is being issued when a business pays their tax for doing business in the City of San Bernardino. In a survey of other cities, we found at least nine cities which use either of the following designations: "Business Tax Certificate" or "Business Tax Registration Certificate". Those cities include: Alhambra, Anaheim, Bakersfield, Downey, Fresno, Fullerton, Los Angeles, Riverside, and Santa Barbara. Since the word "tax" has a negative connotation, I am recommending that we simply call our document a Business Registration Certificate. This change does not necessitate our incurring any additional costs other than that for redesigning the application form and certificate to reflect the new designation. Funds are set aside annually to allow us to order the forms needed to process applications/licenses. o 0 Staff Report to the Mayor and City Council From: Rachel Krasney, City Clerk Date: November 22, 1991 Page Two If this change is approved by the City Council, and the Ordinance amending Chapter 5.04 of the Municipal Code is approved for first reading at the December 16, 1991 Council meeting, second and final reading will take place at the meeting of January 6, 1992, with the Ordinance taking effect on February 6, 1992. We will continue to utilize existing application forms/licenses until the supply is exhausted and phase in new application forms/certificates when the need arises. The second part of the proposal presented to the Legislative Review Committee was to remove the requirement for a Certificate of Occupancy from the business license process. Past practice was that when someone came in to apply for a business license, they also had to verify that a valid C of 0 existed and a business license could not be issued unless a valid C of 0 existed for the premises. This resulted in a loss of revenue for the business license division (estimated to be $100,000 annually) because we could not collect business license fees, however, in most cases, the businesses were already operating and generating sales yet the City was not receiving its fees for doing business here. A survey of other cities was also conducted to determine what their practice is and the results of that survey are included in the attached report to the Legislative Review Committee. Several meetings have taken place with all of the departments concerned, Le., Department of Planning and Building Services, the City Attorney, Fire Department, City Administrator, in an effort to streamline the process. Since July of this year, the Department of Planning and Building Services has modified the process so that the issuance of a business license is not delayed, however, such changes will require an amendment to Section 5.04.025 of the Municipal Code. The action requested will formalize those changes. If any further information is needed, please do not hesitate to call me at extension 3210. ~~s~ City Clerk Attachments o 0 C I T Y 0 F SAN B ERN A R DIN 0 INTEROFFICE MEMORANDUM CITY CLERK'S OFFICE DATE: November 15, 1991 TO: Legislative Review Committee FROM: Rachel Krasney, City Clerk SUBJECT: Proposal to Change designation of "Business License" to "Business Registration Certificate" and Removal of Certificate of Occupancy Requirement from Business Registration Certificate Process COPIES: Shauna Clark, City Administrator; James Penman, City Attorney; Dennis Barlow, Sr. Asst. City Attorney; Al Boughey, Director of Planning and Building Services; Lee Gagnon, Business License Supervisor -------------------------------------------------------------- - REOUESTED ACTION: 1. That the Legislative Review Committee approve City Clerk's proposal to change designation of "Business License" to "Business Registration Certificate" and the removal of Certificate of Occupancy Requirement from Business Registration Certificate process. 2. That the City Attorney's Office be authorized to prepare appropriate changes to the Municipal Code which would enact proposed changes. BACKGROUND INFORMATION: Chanaina desianation of "Business License" With this year's municipal election well past us, I have had more time to concentrate on the operations of the Business License Division of the City Clerk's Office. One major problem I have identified is the fact that we use the term "Business License" when issuing what has always been called a "Business License" in San Bernardino but in other cities is commonly referred to as Business Tax Certificate or Business Tax Registration Certificate. o 0 Legislative Review Committee November 15, 1991 Page Two Webster's Dictionary defines license as: "la. permission to act. b: freedom of action. 2a: a permission granted by competent authority to engage in a business, occupation, or activity otherwise unlawful. 2b: a document, plate, or tag evidencing a license granted...." On the other hand, the word "Certificate" is defined in Webster's Dictionary as: "1: a document containing a certified statement esp. as to the truth; specif: a document certifying that one has fulfilled the requirements of and may practice in a field. 2: something serving the end of a certificate. 3: a document evidencing ownership Oftentimes, a new business owner obtains a business license and mistakenly believes that because a "business license" has been issued, no other permits are needed. Yet, there may be other steps to be taken to comply fully with other requirements imposed by other levels of government. I believe that changing the designation from "business license" to "Business Registration Certificate" more clearly defines the document which is issued when a business pays their tax for doing business in the City of San Bernardino. Section 40 of the City Charter outlines the powers of the Mayor and Common Council and subsection (d) of Section 40 states: "(d) License Tax. Council shall have power to license for purposes of regulation and revenue all and every kind of business, occupations, shows, exhibitions, and lawful games carried on in the City and to fix the rate of license tax thereon." Thus, the fee paid by all businesses is actually a tax and not necessarily a "License" to do business. In a survey of other cities, we found that of the 16 cities surveyed, (See Attachment 1 - Business License and o 0 Legislative Review Committee November 15, 1991 page Three Certificate of Occupancy Survey) nine (9) of them use the designation "Business Tax Certificate" or "Business Tax Registration Certificate". Since the word "tax" has a negative connotation, I am recommending that we simply call our document a Business Registration Certificate. For example, in California we pay a vehicle registration fee which includes a license fee/tax. However, the document issued after paying such a fee is called a "Validated Registration Card". Lee Gagnon, Business License Supervisor, and I have met with City Attorney James Penman and he sees no problem with enacting the proposed changes, other than significant changes in the Municipal Code where the "business license" designation is used in Title 5. We are at a point where we also need to order a new supply of application forms/licenses for the new year so a change at this point in time would not necessitate our incurring any additional costs other than that for redesigning the application form and license to reflect the new designation. With your approval, we will submit this to the Mayor and Council for their approval at the December 16, 1991 Council meeting and request that the changes be effective January 1, 1992. We will continue to utilize existing application forms/licenses until the supply is exhausted and phase in new application forms/certificates as the need arises. prooosal to Remove Certificate of Occuoancv Reauirement Earlier this year I requested a meeting with the then Acting Director of Planning & Building Services (PBS), Larry Reed, to discuss the possibility of expediting the process of issuing Certificates of Occupancy. Past practice was that when someone came in to apply for a business license, they also had to verify that a valid C of 0 existed and a business license could not be issued unless a valid C of 0 existed for the premises. This resulted in a loss of revenue for the business license division (estimated to be $100,000 annually) because we could not collect Legislative Revi5:> Committee November 15, 1991 page Four o business license fees; however, in most cases, the businesses were already operating and generating sales yet the City was not receiving its fees for doing business here. We have surveyed other cities to determine what their practice is and the results of that survey can be found on Attachment 1 previously referred to. Four of the 16 cities surveyed do not become involved with the C of 0 process. Twelve collect the business tax up front; however, the certificate/license is not issued until cleared by Building, Planning, and Fire Departments. Of those cities who do not issue Tax Certificates/Licenses until a C of 0 is cleared, they all concur that it takes too long for clearance. (See Comments section on Business License and Certificate of Occupancy Survey identified as Attachment 1). Several meetings have taken place with the former Director of PBS and the new Director, Al Boughey; with the City Attorney; Fire Department representatives; and Business License Division staff in an effort to streamline the process. We have also kept the City Administrator abreast of our efforts and progress. Since July of this year, PBS has modified the process so that the issuance of a business license is not delayed; however, such changes will require an amendment to Section 5.04.025 of the Municipal Code. The action we are requesting will formalize those changes. As a result of these meetings, departments involved have come to a compromise, that being that the following steps be followed when a business owner comes in to apply for what I hope will soon be called a "Business Registration Certificate": 1. Apply for a Business Registration Certificate 2. Applicant given a "Zoning Consistency Review" (ZCR for sake of brevity) form (copy attached as Attachment 2) 3. Applicant takes ZCR form to PBS for zone check 4. If zone check ok, applicant returns to City Clerk's Office, fee is paid and Certificate is issued. 5. If zone check not ok, Certificate is not issued and applicant must meet requirements specified by PBS prior to issuance of Certificate. o 0 Legislative Review Committee November 15, 1991 Page Five 6. In the absence of a Certificate of Occupancy which contained multiple copies to be distributed to several departments, a weekly list will be generated by the City Clerk's Office showing the names, addresses, etc. of businesses issued Business Registration Certificates. This distribution will include the Mayor and Common Council, Planning & Building Services, Fire Dept., Water Dept., and Health Department. We believe this process will expedite the issuance of Business Registration Certificates and request approval to submit required Ordinance changes enacting these changes. SUMMARY I would designed revenues increase like to emphasize that the changes proposed are to streamline processes 1 help us realize more by expediting the process and they will not mean an in business fees. ~tL~ Rachel Krasney City Clerk Attachments o o OVERVIEW BUSINESS LICENSE AND CERTIFICATE OF OCCUPANCY SURVEY On May 29, 1991 a phone survey was conducted of 16 cities to ask two questions: What is the name of the document you provide to business owners for payment of the license tax? Do you require any type of occupancy permit to the issuance of the certificate/license? prior Of the cities ~urveyed, 4 do not become involved the occupancy issue;a Their reasoning is that they strictly a taxing, not a regulatory agency. Concerned with the collection of revenue. with ~ are only The remaining 12 cities involve themselves with the occupancy process and collect the tax up front. However, the certificate/license is not issued until the Building, Plan- ning and Fire departments have cleared. All of these cities expressed real concerns regarding the time it takes to obtain these clearances. Because of the slow turn around time, a backlog is created along with additional problems for the license division. It was interesting to talk directly involved with these issues everyday. They frustrations we do. We are not alone in our to the people have the same ordeal!! - ,. nJJ..,...i~ I 10 " " 01 " " , e 1 ~ ~ , ... , ~ rn I " " , i ~ , " " '''' Ie I ... ... 1 I'" I 0 0 :.c . ..... ..... i '" '" , :.c .. I C: C: I... z I OJ I 0 0 I ~. ~I ~ ~ 0 I 0 I 0 0 ~ .... .... I '" rn rn e " " ." ... ... e ,. ~ 0 .. .. ., " rn .... 0 ... , '" " " ~ .... 0.... e " I " " '" ......a .... ..... c .... e '" '" .... '" '" ~ ..... ~ " rn" " rn. ...e .... :>. ... .... " rn", " e O~ .... ~ ~ .... e- rn "... ~8. " C- 0" ... c rn ,,~ ..... " '" ........ 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'" .. _ .Ii l o o ZONING CONSISTENCY REVIEW Business Representative Business Name Business Address Type of Business Related Planning Case No(s).: (The above is to be filled out by the Business Representative.) - - - - - - - - - - - - THE PROPOSED USE IS IN THE DISTRICT AND IS: LAND USE ZONING 1. [ ] PERMITTED. required. No other Planning or Zoning approvals are A Business License may be issued. [] The proposed business and circumstances qualifies it as a legal nonconforming use. However, if the occupied building becomes vacant for over 180 days or 6 months the proposed use is not permitted to continue. 2. [] This consistency determination does not relieve the business owner of any requirement of obtaining Building Permit(s) or Certificate of Occupancy, nor imply that the site or building complies with Building, Fire or other Municipal Codes. NOT PERMITTED, until the following Planning review and approval has been obtained: NOTE: [ ] Development Permit - Type [ ] Conditional Use Permit [ ] 3. [] The City cannot issue. a Business License, Building Permit or Certificate of Occupancy until this Planning approval is obtained. NOT PERMITTED. The proposed is not allowed in the identified Land Use Zoning District. The City cannot issue any Planning Permit, Business License, Building Permit or Certificate of Occupancy for the proposed use in the identified Land Use Zoning District. NOTE: Reviewed by Date (Department of Planning and Building Services Staff) rJ..r,;-A J ~"u J: 2- ~