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HomeMy WebLinkAbout05-City Clerk l:JVHG fewoIIV ~!O 1 ORDINANCE NO. 2 ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SUBSECTION 5.04.525F REQUIRING A BUSINESS LICENSE FOR LEASING OR RENTING 3 RESIDENTIAL PROPERTY AND REPEALING SECTION 5.04.355 REGARDING ASTROLOGY, PALMISTRY AND PHRENOLOGY. 4 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO 5 DO ORDAIN AS FOLLOWS: 6 SECTION 1. Subsection 5.04.525F of the San Bernardino 7 Municipal Code is amended as follows: 10 11 12 13 14 15 16 8 9 Leasing. managing, or carrying on the business of leasing or renting "F. Commercial, Industrial and Residential Rental or Every person, firm or corporation conducting, commercial or industrial buildings or spaces, where the buildings or spaces are to be utilized for any business purpose including but not limited to retail sales, offices and suites or other business rentals including mini- storage; or operating a hotel, roominghouse, lodginghouse, boardinghouse, apartment house, court motel, mobile home 17 park; or leasing or renting any residential dwelling units 18 including single family homes, shall obtain a business 19 license and pay a fee in accordance with the following table based on annual gross receipts: 20 21 Annual gross Less than 25,000.00 30,000.00 35,000.00 40,000.00 45,000.00 50,000.00 55,000.00 60,000.00 65,000.00 70,000.00 75,000.00 80,000.00 22 23 24 25 26 27 28 PZ/dys October 4, 1989 receipts 25,000.00 to 29,999.99 to 34,999.99 to 39,999.99 to 44,999.99 to 49,999.99 to 54,999.99 to 59,999.99 to 64,999.99 to 69,999.99 to 74,999.99 to 79,999.99 to 84,999.99 License fee per year 60.00 70.00 80.00 90.00 100.00 110.00 120.00 130.00 140.00 150.00 160.00 170.00 180.00 1 City Attorney DRAfT f 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 85,000.00 90,000.00 95,000.00 nPA' f-"-,h( ~y !1l-, ',' ~' j 190.00 200.00 210.00 2 to to to 89,999.99 94,999.99 100,000.00 3 If annual gross receipts exceed one hundred thousand 4 dollars, the annual license fee is two hundred ten dollars, 5 plus fifty cents for each one thousand dollars or major 6 fraction thereof of annual gross receipts in excess of one 7 hundred thousand dollars of such gross receipts. 8 The intent of this section is to require a license for 9 the business of leasing or renting commercial or industrial buildings, for leasing or renting offices or suites or other business rentals, and for leasing or renting dwelling units. For the leasing or renting of dwelling units a separate license shall be required for each building unless the ownership of the building is divided as provided in Government Code Section 66426 and Section 66427 as a condominium, community apartment project or stock cooperative project, and then a separate license shall be required for each such division. Said license shall be good for two (2) years. Buildings with even number street addresses shall renew on even numbered years and buildings with odd number street addresses shall renew on odd numbered years. It shall be unlawful for any property owner, landlord, manager or agent to demand, accept, receive or retain any payment of rent if the building for which the rent is paid is unlicensed under this section. Any person violating any of the provisions, or failing to comply with any of the PZjdys October 4, 1989 2 City AttorrlGY DRAFT 10 11 12 13 14 15 16 17 18 19 \"'$ J' "I DRAFT 1 requirements of this section, shall be guilty of a 2 misdemeanor." 3 SECTION 2. Section 5.04.355 of the San Bernardino 4 Municipal Code is hereby repealed. 5 I HEREBY CERTIFY that the foregoing ordinance was duly 6 adopted by the Mayor and Common Council of the City of San 7 Bernardino at a meeting thereof, held on the 8 day of , 1989, by the following vote, to wit: 9 AYES: Council Members NAYS: ABSENT: City Clerk The foregoing ordinance is hereby approved this day of , 1989. W. R. Holcomb, Mayor 20 City of San Bernardino 21 Approved as to form and legal content: 22 JAMES F. PENMAN, 23 City Attorney 24 25 26 27 28 By: City AttUH ,4;;j DRAFT PZ/dys October 4, 1989 3 REVENUE ENHANCEMENT REPORT CITY CLERK'S OFFICE OCTOBER 1, 1989 TRANSIENT OCCUPANCY TAX Remove 30 Day Resident Tax Exemption Net: 5153.414 Under present codes, a person residing in a hotel/motel for 30 days or longer is exempt from transient occupancy tax. Recommendation: Amend code to remove this exemption. Based on what would have been collected July, August, September, 1989, our projections are a net of $153,414 per year. No additional staff or equipment is necessary. Cost of code change only. Implementation: Amend Municipal Code. Audit Transient Occupancy Tax Receipts Net: 510.000 The City Clerk's Office has not audited transient occupancy tax accounts for a few years and might find some that are holding out on us. Based on the information we have on where Duffy Street residents were housed, we have a good idea on where to begin auditing. There are approximately 46 accounts. Implementation: Include this audit with business license audit to be recommended, or perform the audit using existing staff at no additional cost to the City. BUSINESS LICENSES Upgrade Classifications. Adjust Prices Net: 5120.000 There are many flat rate businesses license fees that have not been upgraded recently. The last comprehensive upgrade was done in 1986 and at that time, several categories were not touched. For example: billboards advertisers pay $100 per year. This rate was established in 1920. Considering the impact the billboards have on what we are trying to accomplish for this city, the rates should be raised. Business License Supervisor Lee Gagnon has been collecting ordinances from other cities and is working on a schedule to upgrade flat rate business license fees. Implementation: 1. Business License schedule of proposed rate increases. change. Division completes 2. Municipal Code Revenue Enhancement Report October 1, 1989 2 Raise Minimum Business License Rate Net: $85.180 From 1920 to 1983 the minimum rate for a gross receipts business license was $30.00 per year. In 1984, the rate was raised to $40.00 per year, our current rate. Jane Sneddon of our office has suggested raising that rate to $60.00 per year. This would incur no additional cost to our department and will resul t in increased revenue of approximately $85,180. The only cost incurred by the city will be the cost of preparing the code changes and changing the rate schedule in the city computer. Implementation: Amend Municipal Code. License Single Family Rental Units Net: $362.000 Dr. John Husing has recommended charging a business license for each single family dwelling or multi dwelling, three or less. Presently we charge for four or more on the same parcel or on contiguous parcels. Riverside has a single family rental ordinance and charges $55.00 for a license. According to Manuel Moreno, Jr., we have 35,000 single family refuse accounts. If 20% of those accounts are rentals, we are looking at 7000 certificates of occupancy and business licenses. The present rate for those licenses would be $40. If the minimum rate were raised to $60.00 as recommended above, the revenue for business licenses would be: $420,000. There would be costs involved in this endeavor due to the administration and enforcement. Presently we have a staff of a Supervisor, three Inspectors, and three Account Clerks, collecting and enforcing 9000+ accounts and bringing in $3,964,000 in revenue. Single family rentals would be low yield accounts with a lot of enforcement and collection. I recommend two-year business license, rather than quarterly, to reduce billing and collection costs. Even numbered addresses would be renewed in even years, and odd numbered addresses renewed in odd years. First year, every one gets either a one year license or two year license depending on last number of address. Note: The Mayor is not in favor of a certificate of occupancy requirement. Implementation: 1. Amend municipal code. 2. Authorize hiring of an additional business license inspector and account clerk for the purpose of finding these accounts and getting them licensed. ($43,000) 3. Authorize hiring of addi tional Building and Safety inspector to follow up on certificates of occupancy (straight cost recovery - they charge for c/o's). 4. Conduct education program to notify property owners of license requirements. ($15,000 estimate) . Revenue Enhancement Report October 1, 1989 3 Fast Food Rate Differential Net: 8200.000 Mayor Bob has suggested a rate differential for "fast food" establishments that contribute to the litter problem. I n order to raise the $200,000 the Mayor has requested, the rates for certain restaurants, bakeries (doughnut shops), liquor stores, and smaller grocery stores, would have to be raised significantly. We have prepared the rate schedules necessary to achieve the $200,000. Implementation: Amend the Municipal Code. Audit Business Licenses Net: 850.000 Periodically the City Clerk's Office audits gross receipts business licenses. Our returns on these audits are diminishing with the frequency of audits. However, an audit has not been conducted for two years and we are willing to perform another one. Implementation: Authorize approximately $10,000 for the hiring of student interns to conduct the audit. UTILITY TAX Audit: I believe there are residents of the City who are not paying utility tax for every utility that is taxable. I have no idea how much money is involved, but it would not cost much to do an audit if we have cooperation from the utility companies. AREA TAX Ann Harris has asked me to look at ways we can get more revenue for Main Street and the downtown area. By legal opinion, we have not been able to license banks and insurance brokerages, which also means they do not pay area tax. Lee Gagnon discovered that San Francisco got around this by creating a "personnel tax" levied on banks. We are looking into this with the assistance of the City Attorney's Office. At this time, we have no estimated revenue to offer, we just wanted to make you aware that we are looking into the situation. COST RECOVERY LIENS: The City Clerk's Office does administrative work on liens imposed by the City. Though the departments involved: Building and Safety, Public Buildings, and Public Services, charge for overhead, only Public Services reimburses us for our costs. Revenue Enhancement Report October 1, 1989 ASSESSMENT DISTRICTS: Engineering processes Assessment Districts, however, the City Clerk's Office must file, certify and record assessment maps, incurring costs and using administrative time. It is proposed that our costs be added on to the cost of the assessment; passed down to the parcels and reimbursed to us. APPEAL FEES: In general, I believe that the Mayor and Council should impose a fee on abatements appealed to the Mayor and Council level. The fee should be approximately $75.00 and should be refunded to successful appellants. I have not included amounts on the above items because these are not revenue enhancers in the true sense. TOTAL REVENUE: The net total for increased revenue is: S 980.594 SHAUNA CLARK, CITY CLERK 4