HomeMy WebLinkAbout22- City Manager
CITY OF SAN BERNARDINO
INTRA-OFFICE MEMORANDUM
TO:
James F. Penman, City Attorney
Jamie J. Cimino, Administrative AnalYS~
June 1,2009
FROM:
DATE:
RE:
2008 Firework Administrative Civil Penalties
cc:
Jolena E. Grider, Senior Deputy City Attorney
On May 29,2009, I gathered the number of Administrative Civil Penalties Notice and Orders that
were issued for fireworks violations in July of2008.
Number of Firework
ACP's Issued
Amount Awarded
by Hearing Officer
Total Collected
61
$33,900.00
$14,771.00
Number of Firework
ACP's taken to
Small Claims
Total Judgement
Granted
Court Costs
Granted
TOTAL
12
$9,734.00
$330.00
$10,064.00
~A rl2L
F;lCimino/Memos/2008 F ireworksACPs
CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACT
'\'AL
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By: Adam Raymond, Mgt. Analyst II
Subject: Resolution of the City of San
Bernardino amending Resolution 2009-122
establishing certain fees for services
furnished by the City of San Bernardino,
setting a reduced Fireworks Regulatory Fee
of5%.
From: Lori Sassoon, Acting City Manager
Dept: City Manager's Office
Date: May 26, 2009
Meeting Date:
June 1,2009
Synopsis of Previous Council Action:
May 20,2009 - Reviewed by Ways and Means Committee and recommended for approval.
May 18, 2008 - Resolution of the Mayor and Common Council of the City of San Bernardino
establishing certain fees for services furnished by the City of San Bernardino, and superseding
all prior fee resolutions.
Recommended motion:
Adopt Resolution.
l (-\
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Signature
Contact person:
Adam Raymond
Phone: 384-5122
Supporting data attached: Reso, staff report, attachments
Ward: All
FUNDING REQUIREMENTS: Amount: None.
Source: (Acct. No.) Various
(Acct. Description) General Fund
Finance:
Council Notes:
:J
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Agenda Item No. 11-
(Q"I-OCf
ST AFF REPORT
Subiect:
Resolution of the City of San Bernardino amending Resolution 2009-122 establishing certain fees for
services furnished by the City of San Bernardino, setting a reduced Fireworks Regulatory Fee of 5%.
Back2round:
At the Ways and Means Committee meeting on April 8t\ the Committee requested information about
revenues associated with fireworks booth vendors and the costs incurred by the Police and Fire
Departments for extra enforcement during each Fourth of July Weekend.
During the Committee Meeting on May 20th, the Committee members reviewed an analysis of
fireworks related revenues and expenditures from 2005 to 2008 (Attachment A).
As noted in the information provided in Attachment A, according to Section 8.60.095(A) of the City's
Municipal Code (Attachment B), the City may assess up to a 10% regulatory fee on the fireworks
vendors, based on the gross sales of fireworks. The purpose of the regulatory fee is to raise sufficient
funds for the City to pay for a fireworks education/awareness campaign and enforcement costs. The
percentage of the regulatory fee charged to fireworks vendors is set by resolution of the Mayor and
Common Council, and is located in Part VIII, Section 2 of the City's Master Fee Resolution.
After reviewing the information presented in Attachment A, the Committee members moved to bring
forward an item reducing the regulatory fee charged to fireworks vendors from 10% to 5%. The goal
of the Committee members was to reduce the impact on the City's non-profits, who will likely see a
significant drop in revenues due to the economic recession.
The proposed reduction of the regulatory fee will reduce the funds available to conduct fireworks
enforcement and perform a fireworks public education/awareness campaign. To limit these reductions,
the City will allocate Administrative Civil Penalty (ACP) revenue toward these purposes. Based on
last year's fireworks ACP revenue collected to date, approximately $13,000 can be allocated to the
General Fund in FY 09/1 O.
Pursuant to Section 8.60.095(B), the City has prepared a study of anticipated costs for fireworks
enforcement and a public education/awareness program to ensure revenue produced from the
regulatory fee does not exceed costs (Exhibit A).
Financial Impact:
This action will reduce regulatory fee revenue by approximately $30,000 from FY 08/09 totals. With a
reduction in enforcement and public awareness/education costs, and an allocation of $13,000 of ACP
revenue, there will no net impact to the General Fund in FY 09110 by this action.
Recommendation:
Adopt Resolution.
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Attachment A
CITY OF SAN BERNARDINO
CITY MANAGER'S OFFICE
INTEROFFICE MEMORANDUM
To:
Lori Sassoon, Acting City Manager
From:
Adam Raymond, Management Analyst II
Subject:
Ways and Means Committee Request
Date:
May 18,2009
At the Ways and Means Committee meeting on April 8th, the Committee requested more
information about revenues associated with fireworks booth vendors and the costs incurred by the
Police and Fire Departments for extra enforcement during a Fourth of July weekend.
Pursuant to Chapter 8.60 of the City's Municipal Code, operators of fireworks booths are required
to remit a regulatory fee, 10% of gross sales, to the City Clerk's Office. Each booth operator is
also required to submit a financial summary, which allows the City Clerk's Office to verify the
amount remitted to the City is correct. If a party does not pay their regulatory fee to the City
Clerks Office, they will not be allowed to have a booth in subsequent years, unless an appeal is
granted by the Mayor and Common Council.
Below is a summary of the regulatory fee revenue from 2005 through 2008:
# of Total
Year Booths Total Due Collected
2008 34 $ 64,196 $ 57,416
2007 35 $ 71,114 $ 70,959
2006 35 $ 95,855 $ 95,855
2005 35 $ 107,652 $ 96,262
Totals $ 338,817 $ 320,492
The goal of the regulatory fee on fireworks sales is to raise sufficient funds for the City to pay for
a fireworks public education/awareness program, and for enforcing the provisions of Chapter 8.60
of the City's Municipal Code. Since 2005, the City Manager's Office has tracked estimated
enforcement and education/awareness expenditures for Fourth of July weekends. See Exhibit 1
for a detailed breakdown of estimated enforcement expenditures for 2008.
Attachment A
Below is a summary of enforcement and public education/awareness costs compared to the
regulatory fee revenue collected to offset these costs:
Regulatory Total Net Revenue
Year Fee Revenue Expenses / (Expense)
2008 $ 57,416 $ (69,875) $ (12,459)
2007 $ 70,959 $ (103,488) $ (32,529)
2006 $ 95,855 $ (103,263) $ (7,408)
2005 $ 96,262 $ (110,080) $ (13,818)
Totals $ 320,492 $ (386,706) $ (66,214)
Even if the City was able to collect all past due amounts and pursue those booth operators who
have not submitted financial statements, expenditures would still likely exceed revenues, unless
enforcement and/or public education efforts are reduced.
In 2008 the Fire Department began to issue Administrative Civil Penalty (ACP) citations for those
individuals who violated Chapter 8.61, Prohibited Fireworks, of the City's Municipal Code.
According to the Finance Department, approximately $13,600 of ACP revenue related to
fireworks has been collected to date. During 2008, with the additional ACP revenue and a
$32,200 reduction in enforcement costs compared to the prior year, the City's revenues exceeded
revenues by $1,100. It should be noted that ACP revenues attributed to fireworks are not intended
to offset costs relating to public awareness/education and enforcement.
During the Committee meeting, the idea of reducing the regulatory fee charged to fireworks
vendors was also raised. If the City had reduced the fee from 10% to 8% during 2008, the General
Fund revenues would have decreased by $11,500. If the regulatory fee was reduced to 5%,
revenue to the General Fund would have decreased by $28,700. Decreasing the regulatory fee
charged to fireworks vendors would likely require reduced enforcement and/or public education
efforts to limit the impact on the General Fund, unless other sources of revenue were identified.
Another suggestion brought forward by the Committee was to reduce to the total amount of the
regulatory fee billed to vendors by ACP revenues received for fireworks related violations. The
biggest obstacle would be the timeframe in which invoices are remitted to fireworks vendors and
the timeframe the City receives ACP revenues. Municipal Code Section 8.60.095, states that
fireworks vendors must submit their financial summaries to the Clerk's Office by August 31st of
each year. The City Clerk's Office sends the summaries to Finance, who creates invoices and bills
the fireworks vendors. From a review of the ACP fireworks revenue account, only 38% of the
ACP revenue received during FY 08/09 was collected by August 31 st. However, the City could
implement this idea by reducing the regulatory fees by ACP revenue collected during the prior
year.
It is important to note, if the City decides to use ACP revenues to reduce the regulatory fees, the
City would be in effect reducing overall revenues to the General Fund. Enforcement and/or public
education efforts would likely need to be reduced further to mitigate the reductions to the General
Fund.
2
Fireworks 2008
Expenditure Estimates
Police department:
July 4 personnel
July 5 personnel
July 6 personnel
Equipment/vehicles* *
Fire department:
July 3 personnel and equipment
July 4 personnel and equipment
July 5 personnel and equipment
City Clerk's Office
Account Clerk I
Business Registration Supervisor
Other Costs
Public education:
Water bill inserts
School flyers
4th of July posters/flyers
Radio ads - Clear Channel
Radio ads - KCAL/KXSB
Radio ads - KCXX 103.9
Radio ads - KFROG
SB Sun ad
Pennysaver ad
Comunidad Latina ad
La PrensalPress Enterprise
Refuse truck panel ads
Billboard art/rental
* * Indicates estimates were used in
calculating amounts.
City Manager's Office
5/18/09
Exhibit 1
Straight
Time
Labor
Dept. or
Div.
Overhead
Fringe
Benefits
Total Direct
Labor Cost
Total
16,156 275 16,431 1,643 $ 18,074
9,656 164 9,820 982 $ 10,802
6,712 114 6,826 683 $ 7,509
1,740 $ 1,740
2,030 35 2,065 206 $ 2,271
4,352 50 4,402 302 $ 4,704
793 59 852 355 $ 1,207
958 287 1,245 125 $ 1,370
158 48 206 21 $ 227
$ 1,000
$ -
$ 3,656
$ 3,400
$ 1,340
$ 2,980
$ -
$ 1,4 78
$ 1,026
$ 300
$ 500
$ -
$ 50
Total Service Direct Cost $
Average Fire and Police
Gen. & Admin. Rate @ 9.81% $
Total Service Cost $
63,633
6.242
69,875
Attachment B
(Ord. MC-1195, 5-02-05)
Q. Each stand shall post for public viewing, a copy of the map identified in
Section 8.60.010 (Location of Sales and Discharge of Fireworks) and shall
also provide a copy of this map to each purchaser of fireworks. The costs of
copying such maps shall be borne by the licensee.
R. All unsold stock and accompanying litter shall be removed from the location
by five p.m. on the 5th day of July.
S. The fireworks stand shall be removed from the temporary location by twelve
noon on the 15th day of July, and all accompanying litter shall be cleared from
the location by said time and date.
(Ord. MC-1138, 2-18-03; Ord. MC-460, 5-13-85; Ord. 2884 S6, 1968.)
8.60.080 Requirements for Fireworks Supplier.
Prior to the issuance of a license, each applicant shall file with the City Clerk
a cash deposit, certificate of deposit or a surety bond posted by the fireworks supplier
and made payable to the City in the amount of three hundred dollars ($300.00) to
ensure compliance with the provisions of this Chapter. Such deposit or certificate
shall be refundable upon compliance with the provisions and requirements of this
Chapter, including but not limited to the removal of the stand and the cleaning of the
site. In the event the fireworks supplier does not so comply to remove the stand or
clean the site in the manner required by the Director of the Development Services
Department, the City may do so, or cause the same to be done by other persons, and
the reasonable cost thereof shall be a charge against the fireworks supplier and
his/her surety and the deposit, certificate or bond. (Ord. MC-1138, 2-18-03; Ord. MC-
1027, 9-8-98; Ord. 2884 S7, 1968.)
8.60.090 License tax.
As set by Ordinance No. 2884, the license tax forthe selling of fireworks within
the City shall be two hundred dollars per year per stand which fee must be paid at the
time application for a stand is filed with the City Clerk's office.
(Ord. MC-1138, 2-18-03; Ord. 2884 ~9, 1968.)
8.60.095 Regulatory fee for licensee.
A. The City shall assess a regulatory fee on all fireworks sales that occur within
the City of San Bernardino. The regulatory fee, based on the gross sales of
fireworks, shall be paid by the licensee. The purpose of the regulatory fee is
to raise sufficient funds for the City of San Bernardino to pay for fireworks
public education and an awareness campaign about fireworks, and for
enforcing the provisions ofthis Chapter, including extra personnel time for fire
inspection and enforcement duties.
B. Prior to imposing the fee, the City shall prepare a study of the anticipated cost
for fireworks education, awareness, and enforcement. After preparing the
study, the Mayor and Common Council shall adopt a Resolution setting the
regulatory fee rate no later than the last meeting prior to the first day of
fireworks sales pursuant to Section 8.60.070(P). The regulatory fee rate shall
[Rev. July 7, 2008] 8-89
not exceed ten (10) percent of the total gross sales of the fireworks sold in the
City by licensees during the period set forth in Section 8.60.070(P).
C. The Finance Department, each year, shall determine each licensee's share
of the regulatory fee based on the licensee's fireworks sales financial
statements. Each licensee shall provide its fireworks sales financial
statements to the City no later than August 31 st for the period set forth in
Section 8.60.070(P). After the Finance Department receives the financial
statements, the Finance Department shall invoice each licensee for their
share of the total annual regulatory fee. Payment of the regulatory fee by each
licensee shall be due to the City thirty (30) days following issuance of the
invoice.
D. Failure by any licensee to pay the amount invoiced by the City's Finance
Department shall be cause to disqualify the licensee from obtaining a license
to sell fireworks in the City in the future. In the event that the regulatory fee is
not paid by the due date, it shall be subject to a ten (10) percent penalty for
each month or portion of a month that it is overdue. If not paid by the due
date, the amount becomes a debt owed the City subject to collection by legal
process.
(Ord. MC-1195, 5-02-05)
8.60.100 Temporary sales tax permit required.
Applicants licensed for the selling of fireworks are required to obtain a
temporary sales tax permit from the State Board of Equalization.
(Ord. MC-1138, 2-18-03; Ord. 2884 S10, 1968.)
8.60.110 Display of license and sales tax perm it.
The license to sell fireworks and temporary sales tax permit shall be displayed
in a prominent place in the fireworks stand. (Ord. MC-1138, 2-18-03; Ord. 2884 s11,
1968.)
8.60.120 Permissible locations for discharge.
The use of fireworks in the City shall be limited to private property except as
otherwise provided in this Chapter. No fireworks shall be discharged on public or
private unpaved open areas such as vacant lots or fields, or in a public street or right-
of-way, or in public parks except when specifically permitted for public display, and
except those areas approved by the Fire Chief. (Ord. MC-1138, 2-18-03; Ord. MC 966,
4-15-96; Ord. MC-965, 4-1-96; Ord. MC-788, 6-3-91; Ord. MC-785, 5-20-91.)
8.60.130 Prohibitions on sale and discharge.
A. It is unlawful for any person, organization, group, association, etc., to sell any
fireworks except during the time period specified in Section 8.60.070(P).
(Ord. MC-1195, 5-02-05)
B. It is unlawful for any person, organization, group, association, etc., to sell any
fireworks at any time in any of the areas described in Section 8.60.010.
[Rev. July 7, 2008] 8-90
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION i
2009-122 ESTABLISHING CERTAIN FEES FOR SERVICES FURNISHED BY THE
CITY OF SAN BERNARDINO, SETTING A REDUCED FIREWORKS
REGULATORY FEE OF 5%.
WHEREAS, in accordance with the City of San Bernardino Municipal Code Section
8.60.095(B), the City has prepared a study, herein referenced as Exhibit A, of anticipated costs
for fireworks education, awareness, and enforcement.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1.
Resolution No. 2009-122, Part XIII, Section 2, IS hereby
amended to read as follows:
"A fireworks regulatory fee is hereby established pursuant to Section 8.60.095 of the
San Bernardino Municipal Code. The fee shall be five percent (5%) of each fireworks
licensee's gross sales of the fireworks sold in the City each year."
III
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RESOLUTION OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION
2009-122 ESTABLISHING CERTAIN FEES FOR SERVICES FURNISHED BY THE
CITY OF SAN BERNARDINO, SETTING A REDUCED FIREWORKS
REGULATORY FEE OF 5%.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
4 Common Council of the City of San Bernardino at a
meeting thereof, held on
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day of
, 2009, by the following vote, to wit:
the
ABSTAIN ABSENT
NAYS
AYES
Council Members
ESTRADA
BAXTER
BRINKER
SHORETT
KELLEY
JOHNSON
MC CAMMACK
City Clerk
The foregoing resolution is hereby approved this day of
,2009.
Patrick J. Morris, Mayor
City of San Bernardino
Approved as to form:
James F. Penman,
City Attorney
By:
2
Fireworks Regulatory Fee
Study of Anticipated Costs
Estimated Costs
Police Enforcementl $ 20,000
::::::::::::::::::::::::::::::::: :~:(~~: ~ ~f~~:~~:~~:0~[ f:::::::::::::: ~ ~ ~~~:
- - - -. - - - - - - - -. - - - - - - -. _ _ _ _ _ _ _ _.. _g!!y'. gJ~~_~~ ~. Q~i_~.~.i_ _ ~ _ _ _.. _ _ _ _ _ _ _ _. _ ~_ t ?'QQ_
Public Awareness /Educationl $ 9,000
----------.----C3-e;r,--~-~(j-rr,-iri..~~te;-~-~:f31i~-I--S;--.--------.---~:~(j(j-
Total Service Cost I $ 42,500
------------------------------------------------------------- ----------------------------
Less: Estimated Administrative Civil
Penalty (ACP) Revenues $
Net Service Costl $
(13,000)
29,500
Estimated Regulatory Fee Revenue
Estimated Gross Sales - Fireworksl
Vendors' $ 590,000
Estimated Costs as a Percentage ofl
Gross Revenue; 5.000/0
Pro osed Re ulato Fee: 5%
_ _ _ _EO !;ti rt1<lte.~L ~_e.g_ u_l_a_~o_1}' _~ e.e. B_e_v~_n_u_e L S; _ _ __ __ __ __ __ _:29., ~QQ
Total Service Costs $ 29,500
Net Revenue/(Expense) to City $
Exhibit A