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ORIGINAL
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
From: Charles McNeely, City Manager Subject: Resolution of the Mayor and
Common Council of the City of San
Prepared by: Catherine Pritchett, Bernardino setting the 2010 Regulatory Fee
Management Analyst for the sale of fireworks.
Dept: City Manager's Office
Date June 22, 2010 Meeting Date: June 30, 2010
Synopsis of Previous Council Action
6/29/2009 — The Mayor and Common Council adopted resolution 2009-176 setting the 2009
Regulatory Fee for the sale of fireworks and amending resolution 2009-122.
6/15/2009 — The Mayor and Common Council adopted an Urgency Ordinance amending San
Bernardino Municipal Code Section 8.60.095 regarding regulatory fees for the sale
of fireworks.
Recommended Motion:
Adopt Resolution
Signatur
CONTACT PERSON: Catherine Pritchett, Management Analyst Phone: 384-5122
SUPPORTING DATA: Staff Report, Resolution, Ward: All
Reference Attachments
FUNDING REQUIREMENTS: No cost to the City
Source: N/A
Finance:
Council Notes:
Agenda Item No. c2
630 /19
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino setting the 2010
regulatory fee for the sale of fireworks.
Background:
The City of San Bernardino is one of only seven cities in the County of San Bernardino that
allows safe and sane fireworks. Within City limits, fireworks are permitted in all areas south of
the 210 Freeway. In order for the City to generate sufficient funds to pay for fireworks
education/awareness and enforcement, the licensees and the vendors of fireworks booths are
required to pay a regulatory fee, set annually by resolution by the Mayor and Common Council.
The amount of the regulatory fee is determined by a study of the anticipated costs associated
with fireworks education/awareness, and enforcement. This includes additional personnel time
for inspection and enforcement, enhanced policing in firework prohibited areas, and staff time
associated with the overall management of the program by the City Clerk's Office. The Police
Department, Fire Department and City Clerk's Office have calculated their costs in association
with sale of fireworks in the City; a breakdown by department is attached to the Resolution as
Exhibit A. The total estimated cost for the 2010 season is $72,162; this is the maximum amount
the City can collect for firework related details.
The total portion of the fee owed to the City by each licensee/vendor is based on the vendor's
financial statements, which are required to be submitted to the City Clerk's Office no later than
August 31st. To ensure that the organizations earn a profit, the amount they are required to pay
to the City can not exceed 10% of the total gross sales of the fireworks sold. Staff will not know
the total amount of billable fees until the groups file their financial statements in August. The
gross sales have been declining every year; so the amount paid to the city has also declined.
Although the City's costs will likely exceed $72,000, the revenue collected is estimated to be
approximately$65,000.
After receiving the financial statements, the City's Finance Department calculates the amount to
be paid by each booth and invoices 50% of the fee to the licensee (the non-profit operating the
booth) and 50% of the fee to the fireworks vendor. This payment is due to the City within 30
following the issuance of the invoice.
Section 8.60.095(B) of the SBMC states that the Mayor and Common Council shall adopt a
resolution adopting the regulatory fee no later than the last meetingtprior to the first day of
firework sales; July 2, 2010. The special budget meeting on June 30 is the only opportunity
available to adopt the fee for the 2010 season.
A number of challenges have been identified during the past few years associated with collecting
required documents and fees from vendors and licensees. Once the fees for the 2010 season have
been collected from the licensees and vendors, staff recommends that this item be placed on the
Ways and Means Committee agenda for further review and possible modification.
Financial Impact:
It is estimated that this action will generate approximately $65,000 from regulatory fees. This
revenue will be used to offset the City's costs for awareness/education and enforcement costs.
There will be no net impact to the general fund by this action.
Recommendation:
Adopt Resolution.
COPY
RESOLUTION NO.
1
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO SETTING THE 2010 REGULATORY FEE FOR THE SALE OF
3 FIREWORKS.
4 WHEREAS, on June 15, 2009, the Mayor and Common Council adopted an urgency
5 ordinance amending Section 8.60.095 of the San Bernardino Municipal Code, requiring half of
6 the fireworks regulatory fee to be paid by the licensee (the non-profit) and half to be paid by the
7
fireworks company that supplies the product; and
8
9 WHEREAS, prior to imposing the fee, the City is required to prepare a study of the
10 anticipated costs associated with fireworks education, awareness, and enforcement; and
11 WHEREAS, the City has prepared a study of the anticipated costs for fireworks
12 education, awareness and enforcement for the 2010 season, a copy of which is attached hereto
13 as Exhibit "A" and by reference made a part here of.
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June 23,2010
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO SETTING THE 2010 REGULATORY FEE FOR THE SALE OF
1 FIREWORKS.
2 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
3 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
4 SECTION 1. That the Mayor and Common Council of the City of San Bernardino has
5 determined that the total anticipated costs for the City to provide services to support the sale of
6 fireworks for the 2010 season has been calculated at $72,162.
7
SECTION 2. The Finance Department shall determine the proportion of the
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9 regulatory fee owed to the City based on the licensee's fireworks sales financial statements.
10 The regulatory fee charged by the City shall not exceed 10% of the total gross sales of the
11 fireworks sold in the city by the licensee.
12 SECTION 3. This fee shall take effect upon the adoption of this resolution.
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June 23,2010
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO SETTING THE 2010 REGULATORY FEE FOR THE SALE OF
1 FIREWORKS.
2 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
3
and Common Council of the City of San Bernardino at a meeting thereof, held
4
5 on the day of 2010 by the following vote, to wit:
6 Council Members: AYES NAYS ABSTAIN ABSENT
7 MARQUEZ
8 DESJARDINS
9 BRINKER
10 SHORETT
11
KELLEY _
12
13 JOHNSON
14 MCCAMMACK
15
16 Rachel G. Clark, City Clerk
17 The foregoing resolution is hereby approved this day of
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, 2010.
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20 Patrick J. Morris, Mayor
21 City of San Bernardino
Approved to form:
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By:
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24 JA SF. PENMAN,
City Attorney
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June 23,2010
Fireworks 2010 Exhibit a
Expenditure Estimates
Total Direct Dept.or Div.
Police Department: Labor/Time Fringe Benefits Labor Cost Overhead Total
July 2 personnel $ 9,803.00 $ 171.55 $ 9,974.55 $ 997.46 $ 10,972.01
July3personnel $ 9,700.00 $ 169.75 $ 9,869.75 $ 986.98 $ 10,856.73
July 4 personnel $ 10,200.00 $ 178.50 $ 10,378.50 $ 1,037.85 $ 11,416.35
Equipment/vehicles** $ 1,698.00
Fire Department:
July 1 personnel $ 831.00 $ 251.00 $ 1,082.00 $ 108.20 $ 1,190.20
July 2 personnel $ 1,887.00 $ 529.00 $ 2,416.00 $ 241.60 $ 2,657.60
July 3 personnel $ 1,887.00 $ 529.00 $ 2,416.00 $ 241.60 $ 2,657.60
July 4 personnel $ 1,887.00 $ 529.00 $ 2,416.00 $ 241.60 $ 2,657.60
Public Information Officer* $ 1,802.00 $ 544.00 $ 2,346.00 $ 234.60 $ 2,580.60
City Clerk's Office:
Business Registration Representative $ 2,220.54 $ 666.16 $ 2,886.70 $ 288.56 $ 3,175.26
Business Registration Manager $ 950.64 $ 285.19 $ 1,235.83 $ 123.51 1 $ 1,359.34
Materials $ 70.25
Public Education:
General Public Education: 67 hrs*
Water bill inserts/Water Dept $ 1,000.00
La Maquina Musical $ 720.00
® 4th of July posters/flyers/inserts/print $ 3,188.21
4th of July banners/print $ 1,569.60
Radio ads-KCXX 103.9 $ 2,990.00
SB Sun ad $ 3,198.00
Pennysaverad $ 1,068.00
La Presna-ad NA
Press Enterprise-ad $ 690.00
Total Service Direct Cost $ 65,715.34
Gen. &Admin. Rate @ 9.81% $ 6,446.68
Total Service Cost $ 72,162.02
Summary 2010 Total
Police department: $ 34,943
Fire department: $ 11,744
City Clerk's Office $ 4,605
Public Education Total: $ 14,424
Total Service Direct Cost $ 65,715
Gen.&Admin.Rate @ 9.81% $ 6,447
Total Service Cost $ 72,162
C
City Manager's Office
6/23/2010