HomeMy WebLinkAbout07/31/07AGENDA
ADJOURNED REGULAR MEETING HERMOSA BEACH CITY COUNCIL
Tuesday, July 31, 2007 - 7:10 p.m.
Council Chambers, City Hall
1315 Valley Drive
MAYOR
Michael Keegan
MAYOR PRO TEM
J. R. Reviczky
COUNCIL MEMBERS
Patrick 'Kit' Bobko
Sam Edgerton
Peter Tucker
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
CITY CLERK
Elaine Doerfling
CITY TREASURER
John M. Workman
CITY MANAGER
Stephen R. Burrell
CITY ATTORNEY
Michael Jenkins
CITY CLERK
PUBLIC PARTICIPATION: Although the City Council values your comments, the Brown
Act generally prohibits the Council from taking action on any matter not listed on the posted
agenda.
1. ADOPTION OF RESOLUTION SUBMITTING A MEASURE TO THE
VOTERS ON THE NOVEMBER MUNICIPAL ELECTION BALLOT TO
INCREASE THE BUSINESS LICENSE TAX ON SPECIFIC BUSINESSES.
(Continued from July 24, 2007). Memorandum from City Manager Stephen
Burrell dated July 26, 2007.
RECOMMENDATION: That the City Council submit a measure to the
voters on the November Municipal election ballot to increase the
Business License Tax. A 4/5 vote by the City Council is required in
order to place the measure on the ballot since it is a general tax
increase.
2. ADOPTION OF RESOLUTIONS REGARDING CONSOLIDATION WITH
THE COUNTY, ARGUMENT AND IMPARTIAL ANALYSIS, AND
REBUTTAL ARGUMENTS FOR A BUSINESS LICENSE TAX MEASURE TO
BE PLACED ON THE BALLOT OF THE GENERAL MUNICIPAL ELECTION
OF NOVEMBER 6, 2007. Memorandum from City Clerk Elaine Doerfling
dated July 26, 2007.
A
• •
RECOMMENDATION: If the Council acts this evening to place a
business license tax measure on the November 6, 2007 ballot, the
following actions must also be taken:
• Decide on the filing of a written argument by Council in favor of
the measure; and
• Adopt the attached three resolutions to:
(1) Request election consolidation with the County for the
additional measure;
(2) Set priorities for written arguments and direct the City
Attorney to prepare an impartial analysis; and
(3) Provide for the filing of rebuttal arguments for the
measure.
ADJOURNMENT
July 26, 2007
Honorable Mayor and Members of
the Hermosa Beach City Council
Regular Meeting of
July 26, 2007
Business License Tax
Recommendation:
That the City Council review additional information to be provided prior to or at the
meeting and determine whether or not to place a measure on the November ballot.
Background:
The City Council, at its July 25, 2007 meeting, reviewed a proposal ballot measure to
increase the business License tax on specified categories of businesses. A subcommittee
of Councilmembers, Sam Edgerton and Kit Bobko, was formed to meet with staff and
review the proposal and return with changes at the Adjourned Regular Meeting on
Tuesday, July 31, 2007.
The subcommittee has not had a chance to meet yet, but will prior to the City Council
meeting on July 31, 2007. Staff will forward any materials as soon as they are available.
Attached is the report from the July 24, 2007 meeting for your reference.
Respectfully submitted,
St
City Manager
1
I
Honorable Mayor and Members of
the Hermosa Beach City Council
July16, 2007
Regular Meeting of
July 24, 2007
ADOPTION OF RESOLUTION SUBMITTING A MEASURE TO THE VOTERS ON THE
NOVEMBER MUNICIPAL ELECTION BALLOT TO INCREASE THE
BUSINESS LICENSE TAX ON SPECIFIC BUSINESSES
RECOMMENDATION:
That the City Council submit a measure to the voters on the November Municipal
election ballot to increase the Business License Tax as recommended In the staff report
of 7/10107, with revised fees of $1.50/$1,000 for restaurants and other businesses on
the gross receipts method of calculation. A 4/5 vote by the City Council Is required in
order to place the measure on the ballot since It Is a general tax increase.
Adoption of the attached resolution will place the ordinance (also attached) on the
November 2007 ballot.
BACKGROUND:
This item was originally presented on June 12, 2007. The City Council continued the
item to 7/10/07, requesting that the proposed rate schedule for commercial property be
changed to cover a wider range of square footage.
At the meeting of July 10, 2007, the City Council requested that staff meet with the City
Council Subcommittee of Councilman Edgerton and Councilman Reviczky to review a
gross receipts rate of $1.50/$1,000 and $1.00/$1,000 for restaurants In addition to the
originally proposed $2.00/$1,000 rate.
The agenda item from July 10, 2007 Is attached as background material.
ANALYSIS:
The attached schedules show the current fee and revised fees at gross receipts levels of
$21$1,000, $1.50/$1,000 and 51/51,000 for restaurants and other businesses on the
gross receipts method of calculation.
Please note that the first line or 'range under each category shows the businesses
whose fee decreases rather than Increases. For example, in the first category of B-21,
looking at the $1.50 rate column, the new license fee will be less than the current fee for
10 businesses. There are 105 restaurants shown In the schedule; 45 will have a
decrease In their license fee at the $1.50/$1,000 rate.
The current fee for restaurants is a flat fee. The recommendation Is to change
restaurants to the gross receipts method which will be more equitable since the volume
of business is taken Into account. Asan example, in the first category, B-21, all
t
• •
businesses pay $181, from the smallest business with gross receipts of 52,600 to the
largest with over $2 million in gross receipts.
The original proposal of $2.00/51,000 generated additional business licenses fees of
$53,782, an increase of 62%. Revising the fee to 51.50/51,000 generates an additional
521,156, an increase of 24%. At a rate of 51.00/51,000, the fees actually would be less
than the current fee by $11,551. The Subcommittee and staff recommend that the
$1.50/$1,000 rate be used. This rate does not generate a lot of additional revenue at
the outset but is a more equitable method and revenue will grow as businesses grow.
The Subcommittee and staff also recommend changing the other businesses on gross
receipts to the same rate of $1.50 so that there is one rate for all businesses on gross
receipts. The original increase to $2.00/$1,000 would have generated an increase in
revenue of $173,222. Changing the rate to 51.50/51,000 will generate an additional
$78,360.
SUMMARY:
The proposal from 7/10/07 would have generated total revenue of $333,970 per year.
With the change in gross receipts to 51.50/51,000, the overall total will be $206,481. For
illustrative purposes, if this amount were added to the 2007-08 revenue of approximately
$800,000, the new revenue total would be 51,006,481. Assuming that the same
numbers of business licenses were issued, the new average would be $355. Due to the
fact that business licenses renew at different times and since the increase would only be
effective for a portion of the fiscal year, the full impact of the change would not be
recognized until 2008-09.
As presented in the 2007-08 Budget Message, this proposal is part of the overall
strategy to increase revenue growth which will allow us to continue providing the same
level of services to residents and businesses.
Respectfully submitted,
Viki Cope and
Finance Director
2
Business License Categories
Restaurants
No. of
Bus.
•
Gross Receipts
Current Fee
New Fee 62151,000
New Fee 51.50151,000
New Fee 51/51,000
B-21 Restaurants w/o Liquor
10
2,600 - 58,300
181.00
100.00 -196.60
100.00 -172.45
100.00 -148.30
3
67,400-80,100
"
214.80-240.20
186:10-205.15
157.40-170.10
9
110,400-191,800
300.80-463.60
250.60-372.70
200.40-281.80
5
205,900 - 298,200
"
491.80 - 672.40
393.85 - 529.30
295.90 - 388.20
4
303,000 - 352,500
"
686.00 - 785.00
539.50 - 613.75
393.00 - 442.50
2
511,900-519,500
1,103.80-1,119.00
852.85-86425
601.90-609.50
4
656,500-773,900
'
1,393.00-1,627.80
1,069.75-1,245.85
748.50-863.90
2
928,700-968,300
"
1,937.40-2,012.60
1,478.05-1,534.45
1,018.70-1,056.30
2
1,065,300-1,089,000
2,210.60-2,258.00
1,682.95-1,718.50
1,155.30-1,179.00
1
2,089,400
•
4,258.80
3,219.10
2,179.40
Total 42
B -22a Restaurant
w/Beer & Wine, No Entertainment
2
188,700 -195,900
648.00
457.40 - 471.80
368.05 - 378.85
278.70 - 285.90
2
399,200 - 509,000
878.40 -1,098.00
683.80 - 848.50
489.20 - 599.00
Total 4
B -22b Restaurant
w/Beer & Wine, W/Entertalnment - No businesses In this category
B -22c Restaurant w/Beer & Wine, No Entertainment, 1,000 -2,000 sq. ft
15
49,900 - 502,900
866.00
179.80 - 1,085.80
159.85 - 839.35
139.90 - 592.90
4
523,900 - 830,400
"
1,127.80 -1,740.80
870.85 -1,330.60
813.90 - 920.40
2
1,109,600 -1,110,600
-
2,29920- 2,30120
1,749.40 -1,750.90
1,199.60 -1,200.60
Total 21
B -22d Restaurant
w/Beer & Wine w/Entertatnment,1,000 - 2,000 sq. ft
2
150,600 -160,500
1,294.00
381.20 - 401.00
310.90 s 325.75
240.60 - 250.50
1
880,000
1,840.00
1,405.00
970
Total 3
8-22e Restaurant w/Beer & Wine, No Entertainment > 2,000 sq. ft
7
75,500-455,900
1,083.00
231.00-991.80
19825-768.85
165.50-545.90
2
670,100 - 675,100
"
1,420.20 - 1,430.20
1,090.15 -1,097.65
760.10 - 765.10
2
956,300-978,3001,992.60-2,036.60
1,519.45-1,552.45
1,046.30-1,068.30
1
1,187,300
"
2,454.60
1,865.95
1,277.30
Total 12
B -22f Restaurant w/Beer & Wine, w/Entertainment> 2,000 sq. ft. - No businesses in this category
3
Business License Categories
Restaurants
4
•
•
No. of
Bus.
Gross Receipts
Current Fee
New Fee $2/$1,000
New Fee $1.50/$1,000
New Fee $1/$1,000
B -23a Restaurant
w/Liquor
1
533,100
1,294.00
1,146.20
884.65
623.1
1
1,114,700
2,309.40
1,757.05
1,204.70
Total 2
B -23b Restaurantw/Liquor,
w/Entertainment
1
640,200
1,725.00
1,360.40
1,045.30
730.2
1
1,538,800
3,117.60
2,393.20
1,628.80
Total 2
B Restaurant
w/Llquor, No Entertainment
-23c
2
209,600 - 366,900
1,512.00
499.20 - 813.80
399.40 - 635.35
299.60 - 456.90
2
1,729,700-2,871,800
"
3,539.40-5,823.60
2,679.55-4,392.70
1,819.70-2,961.80
1
3,261,500
"
6,603.00
4,977.25
3,351.50
Total 5
B -23d Restaurant
w/Liquor, w/Entertainment
2
153,300-1,021,800
1,941.00
386.60-2,123.60
314.95-1,617.70
243.30-1,111.80
5
1,427,900-1,763,300
2,935.80-3,606.60
2,226.85-2,729.95
1,517.90-1,853.30
1
4,492,400
9,064.80
6,823.60
4,582.40
Total 8
B -23e Restaurant
w/Llquor, No Entertainment> 4,000 sq. ft
1
890,200
1,725.00
1,860.40
1,420.30
980.20
3
1,344,000 - 3,290,700
"
2768.00 - 6,661.40
2,101.00 - 5,021.05
1,434.00 - 3,380.70
Total 4
B -23f Restaurant
w/Llquor, w/Entertainment 4,000 sq. ft.
1
566,300
2,159.00
1,212.60
934.45
656.30
Total 1
There are
no businesses In the following five catagories:
B -24a Cocktail Bar- No Entertainment - Less than 2,000 sq. ft
B -24b Cocktail Bar - w/Entertainment - Less than 2,000 sq. ft.
B -24c Cocktall Bar - No Entertainment - More than 2,000 sq. ft. and less than 4,000 sq. ft.
B -24d Cocktail Bar - w/Entertainment - More than 2,000 sq. ft. and less than 4,000 sq. ft.
B -24e Cocktail Bar - No Entertainment - More than 4,000 sq. ft.
4
•
•
Business License Categories
Restaurants
No. of
Bus.
Gross Receipts
Current Fee
New Fee $2t$1,000
New Fee $1.50/$1.000
New Fee $1/$1,000
B- 241 Cocktail
Bar -w/Entertainment, More than 4,000 sq. ft.
1
502,700
2,159.00
1,085.40
839.05
592.70
Total 1
There are
no businesses In the following six catagories:
B -25a Beer/Wine Bar -No Entertainment - Less than 1,000 sq. ft.
B -25b Beer/Wine Bar - w/Entettalnment - Less than 1,000 sq. ft
B -25c Beer/Wine Bar - No Entertainment -More than 1,000, Tess than 2,000 sq. ft
B -25d Beer/Wine Bar - wlEntertainment - More than 1,000, Tess than 2,000 sq. ft.
B -25e Beer/Wine Bar- No Entertainment -2,000 sq. ft. or more
B -25f Beer/Wine Bar-w/Entertainment - 2,000 sq. ft. or more
TA41 .„14Res uianfsl8ars err or
am' Addib dal Rev e r
ge'o .: «
Peroeniageanctease"'9
I~r
4» .244,246100kn."(
2 00 w%
o- '..
>>a�2% : ...
taxop
24,0"55550
. 24%
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5
•
Business License Catagories
sinesses on Gross Receipts
6
No. of
Bus.
Gross Receipts
Current Fee
New Fee $21$1,000
New Fee $1.50/$1,000
New Fee $1/$1,000
A-1 Auto
DealerNVholesale
8
10,000 -100,000
50.00 - 86.00
100.00 - 280.00
100.00 - 235.00
100.00 -190.00
7
102,149 - 498,342
86.86 - 245.34
543.53 -1,076.68
238.22 - 832.51
192.15 - 588.34
3
558,744- 870,000
269.50 - 394.00
1,197.49 -1,820.00
923.12 -1,390.00
648.74 - 960.00
2
1,104,004-1,255,953
487.60 - 548.38
2,200.00
1,741.01 -1,968.93
1,194.00 -1,345.95
5
Over 1,104,004
777.33 -1,100.00
2,200.00 max
2,200.00 max
1,918.32 - 2,200.00
Total 25
A-22 Laundry/Dry
Cleaning
7
10,000 - 85,210
75.00 -150.21
100.00 - 250.42
100.00 - 212.82
100.00 -175.21
1
144,000
209.00
368.00
301.00
234.00
2
339,818 - 390,672
404.82 - 455.67
759.64 - 861.34
594.73 - 671.01
429.82 - 480.67
Total 10
A-23 Laundromat
1
4,400
75.00
88.80
91.60
94.40
2
51,830 - 60,505
110.56 -117.93
183.66 - 201.01
162.75 -175.76
141.83 -150.51
1
125,485
173.16
330.97
273.23
150.51
Total 4
A Leased
Laundry Equipment
-23a
2
35,733 - 90,691
69.31 -110.53
151.48 - 261.40
221.04 -138.60
180.69 -125.73
Total 2
A-24 Hospital/Sanitarium/Mortuary
2
1,575,605-2,837,000
1,405.76-2,477.95
3,23121 -5,754.00
2,448.41 -4,340.50
1,665.61 -2,927.00
Total 2
A-25 Re
ail Sates
20
10,000 or less
100.00
100
100
100
6
14,500 - 20,000
100.00
109.00 -120.00
106.75 -115.00
104.50 -110.00
20
21,392 - 58,690
100.00 -138.69
122.78 -197.38
117.09 -173.04
111.39 -148.69
11
60,000 - 97,000
140.00 -177.00
200.00 - 274.00
175.00 - 230.50
150.00 -187.00
41
100,270 -191,235
180.27 - 271.00
280.54 - 462.47
235.41 - 371.85
190.27 - 281.24
21
200,000 - 298,183
280.00 - 376.18
480.00 - 672.37
385.00 - 529.27
290.00 - 386.18
6
Business License Categories
Other Businesses on Gross Receipts
No. of
Bus.
Gross Receipts
Current Fee
New Fee $2/$1,000
New Fee $1.50/$1,000
New Fee $1/$1,000
11
301,000 - 358,624
381.00 -438.62
682.00 -797.25
536.50 - 622.94
391.00 - 448.62
12
400,000 - 498,000
480.00 - 578.00
880.00 -1,076.00
685.00 - 832.00
490.00 - 588.00
15
514,379-998,872
594.38-1,078.87
1,108.76-2,077.74
856.57-1,583.31
604.38-1,088.87
13
1,003,529-4,835,090
1,083.53-4,915.09
2,087.06-9,750.18
1,59029-7,337.64
1,093.53-4,925.09
3
7,036,999-28,772,759
7,117.00-28,852.76
14,154.00-57,625.52
10,640.50-43,244.14
7,127.00-28,862.76
Total 173
A-26 Te ephone Company
1
9,287,879
7,008.41
18,655.76
14,016.82
9,377.88
Total 1
B-20 Specialty
or Antique Shop
1
1,140
100.00
8228
86.71
91.14
3
15,000 - 43,838
100.00 -123.84
110.00 -167.68
107.50 -150.76
105.00 -133.84
3
111,000-322,828
191.00-402.83
30200-725.66
251.50-569.24
201.00-412.83
Total 7
B-26 Motion
Picture -No business in this category
E-2 Cigarette Machine
1
28,760
64.07
137.52
128.14
118.76
Total 1
E3 Vending
Machine
1
500
50.00
100.00
85.75
90.50
1
68,376
93.78
216.75
187.56
158.38
Total 2
E-4 CigaretteNending
Machines - Gross receipts added into gross receipts of business
r,yo Otle
44 (
et?
yes;
. S ��Pemetnt`of:lhdreaser
Loss 4pi p a egor es ' 5 .$x ,#5: m 'te=
i?l� ;i N� I Lk "' 'Ifsc', u°'t-"` ‘7, x'174 67� 99 ''pts h >•`3474689: -.4. i 4.rv, � e r hsv
.L�U 252 827 98 ,< �� X772-9081'65.
Ind o iR.Ei. ' sxk E<1 M/Ij lill, 21 int; �h4' 'S a-4
Additional Revenue" -`r F rr k Yx173 221 75 �/8 359 99 } x (1 564 3.
z+ R v , . ; 99%, . r`'' .. • .45% . - : fn0.90"/e
s.. I e._
7
• •
RESOLUTION NO. 07-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACII CALIFORNIA CALLING AND GIVING NOTICE
OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION ON
TUESDAY. NOVEMBER 6, 2007 FOR THE SUBMISSION TO THE
VOTERS OF A QUESTION RELATING TO AMENDING THE CITY'S
BUSINESS LICENSE TAX ORDINANCE BY INCREASING THE
GENERAL TAX ON SPECIFIED BUSINESSES
Section I. Recitals
A. Pursuant to Chapter 5.04 of the Hermosa Beach Municipal Code, the City
currently levies a Business Tax on persons conducting business in
Hermosa Beach;
B. The City Council of the City of Hermosa Beach desires to submit to the
voters at the election a question relating to amending the City's Business
License Tax Ordinance by increasing the general tax on specified
businesses;
C. Proposed Ordinance No.� attached hereto and incorporated herein by
reference as Attachment "A" (the "Ordinance") would implement these
proposed revisions to the tax; and
D. Under the provisions of the laws relating to general law cities in the State
of California, a General Municipal Election shall be held on November 6,
2007.
Section 2. The City Council of the City of Hermosa Beach does hereby resolve,
declare, determine and order as follows:
A. The City Council fords and determines that each of the recitals set forth
above are true and correct.
B. That pursuant to the requirements of the laws of the State of California
relating to general law cities, there is called and ordered to be held in the
City of Hermosa Beach, California, on Tuesday, November 6, 2007, a
General Municipal Election.
C. The City Council proposes to impose the general tax set forth in the
Ordinance, which is attached to this Resolution as Attachment A and
e
incorporated herein by reference, and will be presented to the voters on
November 6, 2007 at the General Municipal Election.
I). That the City Council, pursuant to its right and authority, by a two-thirds
vote of its membership, does order submitted to the voters at the General
Municipal Election the following question:
Shall an ordinance be adopted amending the City's business
license ordinance to increase the existing tax on specified
businesses, with revenues continuing to be used to support
essential City services such as 911 emergency response, fire,
police, sewer and street repairs, and with continued public review
of the City Budget?
YES
U
NO
U
This question requires the approval of a majority of those casting votes.
E. That in all particulars not recited in this Resolution, the election shall be
held and conducted as provided in Resolution No. and law for
holding municipal elections.
F. That notice of the time and place of holding the election is given and the
City Clerk is authorized, instructed and directed to give further or
additional notice of the election, in time, form and manner as required by
law.
G. In the event that the ordinance is approved by a majority vote of the
electors casting ballots on November 6, 2007, the business license tax
shall be collected in accordance with the revised rates in the same manner
as the tax is currently collected, as set forth in Hermosa Beach Municipal
Code Chapter 5.04 (Business License Tax).
Section 3. Upon the approval of the Ordinance by a majority vote of the electors
voting on the issue and the certification of the results of the November 6, 2007 election
by the City Council in the manner authorized by law, the Mayor and City Clerk are
hereby authorized and directed to attest to the approval of the Business License Tax
amendment by a majority vote of the electors.
Section 4. Pursuant to California Elections Code Section 9280, the City Clerk is
hereby directed to transmit a copy of the Ordinance set forth in Section 2 above to the
City Attorney, who shall prepare an impartial analysis of the measure, not to exceed 500
words in length, showing the effect of the measure on the existing law and the operation
of the measure, and transmit such impartial analysis to the City Clerk within ten (10)
days of the adoption of this Resolution.
• •
Section 5. The City Clerk is hereby directed to file a certified copy of this Resolution
with the Los Angeles Board of Supervisors and the Los Angeles County
Registrar/Recorder.
Section 6. The City Clerk shall certify to the passage of this Resolution and enter it
into the book of original resolutions.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Hermosa
Beach at a regular meeting held this _ day of July, 2007 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney
10
AN ORDINANCE OF THE CITY OF HERMOSA
BEACH AMENDING THE BUSINESS TAX
ORDINANCE BY INCREASING THE TAX ON
SPECIFIED BUSINESSES AND CHANGING THE
METHOD OF TAXATION OF RESTAURANTS AND
BARS TO TAXATION ON THE BASIS OF GROSS
RECEIPTS
The People of the City of Hermosa Beach hereby ordain as follows:
Section 1. Section 5.04.200.B. of Title 5, Chapter 5.04 of the Hermosa Beach
Municipal Code is amended as follows:
A. Paragraph 1 (Classification A), Groups 1, 17, 22, 23, 23a, 24, 25 and 26
are amended and a new Group 20 is added to read:
Group 1: Automobile agency, used car dealers, boat dealers, manufacturers,
jobbers, wholesalers, second hand dealers shall pay an annual license tax of
one hundred dollars ($100) on gross receipts of $10,000 or less, plus $1.50
for each additional one thousand dollars ($1,000) of gross receipts, but not to
exceed a total of $2,200.
Group 17: Hotel, motel, rooming house, boardinghouse, lodging house,
apartment house, or any other accommodations for dwelling, sleeping or
lodging containing three or more accommodations shall pay an annual
license tax of $44 per rental unit. Owner -occupied units are exempt from
payment of the tax.
Upon application for a business license for rental units as required by this
code:
a. The applicant shall sign an agreement under penalty ofperjury that to
the best of the applicant's information and belief, the rental of the
units for which the license is granted is conducted in accordance
with all applicable city rules and regulations.
b. Said business license permit shall also include a statement, executed
by the property owner, that the granting ofthis license is for revenue
purposes only and is not a consent of the city to grant to the owner
any rights in the conducting of the business of rental units that are
not otherwise granted by city laws, rules or regulations and that the
• •
granting of the license is not to be considered by the owner as a
waiver by the city of its rights to enforce any violation of certain
laws, rules or regulations at any time.
c. Upon the granting of a license for the conducting of the business of
rental units, a copy of said license shall be forwarded to the building
department for review with city records to determine if the licensed
premises conform according to city records, to all laws, rules and
regulations of the city.
d. In the event that the building department determines a violation,
according to city records, of any law, rule or regulation of the city
exists, then the property owner shall be informed of the apparent
violation and advised of any administrative hearings available to the
owner to cause the rental units to conform to city laws, rules and
regulations and further informing the owner that any enforcement by
the city of such law, rule or regulation may, because of the lack of
adequate personnel, be delayed but that such delay is not to be
considered by the applicant as a waiver by the city of the
enforcement of said laws, rules or regulations.
e. The failure of the building department to give the notice required by
subdivision (d) above shall not be grounds for the applicant to fail to
comply with each law, rule or regulation of the city.
Group 20: Every person engaged in the business of renting or leasing
commercial real estate property shall pay an annual license tax as set forth in
the following chart
SQUARE FEET TAX
0 - 500 $100
501-2000 $200
2001- 3500 $300
3501-5000 $400
5001 and over $500 plus $100
for every
increment of
1,500 square
feet above 5001
12
• •
Group 22: Laundry or similar business where the public may leave their
laundry to be done—an annual tax of one hundred dollars ($100) on gross
receipts of $10,000 or less, plus $1.50 for each additional one thousand
dollars ($1,000) of gross receipts.
Group 23: Launderette, laundromats or dry cleaning on the premises by
individual machines, where a charge is made through a coin-operated slot or
on a flat fee basis—an annual tax of one hundred dollars ($100) on gross
receipts of $10,000 or less; plus $1.50 for each additional one thousand
dollars ($1,000) of gross receipts.
Group 23.a: Coin-operated washer and dryer equipment not owned by the
proprietor in apartment houses, hotels, motels and other similar
accommodations for dwelling, sleeping or lodging—Every person engaged in
the business of renting, leasing or operating coin operated laundry equipment
not otherwise specifically covered by this chapter on premises mentioned
above shall pay an annual license tax of one hundred dollars ($100) on gross
receipts of $10,000 or less, plus $1.50 for each additional one thousand
dollars ($1,000) of gross receipts derived from the conduct of business within
the city.
Group 24: Hospitals, sanitariums and rest homes, mortuaries, animal
hospitals—an annual tax of one hundred dollars ($100) on gross receipts of
$10,000 or less, plus $1.50 for each additional one thousand dollars ($1,000)
of gross receipts.
Group 25: Selling or offering for sale to the public at retail any materials,
commodities, goods, wares or merchandise, such as auto parts, food stores,
bakery, garages, service stations, drug stores, florists, furniture, printing
shops and all other similar, kindred or related operations for which a business
license tax is not otherwise specifically mentioned above—an annual tax of
one hundred dollars ($100) on gross receipts of $10,000 or less, plus $1.50
for each additional one thousand dollars ($1,000) of gross receipts.
Group 26: Telephone companies operating in the city and holding no
franchise shall pay an annual license tax of one hundred dollars ($100) on
gross receipts of $10,000 or less, plus $1.50 for each additional one thousand
dollars ($1,000) of gross receipts.
B. Paragraph 2 (Classification B), Groups 8 and 20 are amended, Groups 21
through 25 are deleted, Group 26 is renumbered as 22 and amended, a new
Group 21 is added to read:
13
• •
Group 8: Massage therapy, practicing physiotherapy, health and physical
culture establishments shall pay an annual license tax of $250 for the first
1,000 square feet, $250 for each additional 1,000 square feet, plus $25 per
employee. Issuance of a business license for an independent Massage
Therapy business requires prior approval of a Conditional Use Permit and
compliance with the licensing requirements of Chapter 5.74.
Group 20: Specialty shop: retail or service specialty establishments
purveying primarily apparel, curios, artifacts, footwear, artistic materials, and
related items—an annual tax of one hundred dollars ($100) on gross receipts
of $10,000 or Tess, plus $1.50 for each additional one thousand dollars
($1,000) of gross receipts.
Group 21: Any restaurant or bar, cocktail lounge or nightclub where food
and/or beverages are offered or sold for consumption on or off premises shall
pay an annual license tax of one hundred dollars ($100) on gross receipts of
$10,000 or less, plus $1.50 for each additional one thousand dollars ($1,000)
of gross receipts. Issuance of a business license for a use in this category that
sells alcoholic beverages requires prior approval of a Conditional Use Permit.
Group 22: Motion picture theaters—an annual tax of one hundred dollars
($100) on gross receipts of $10,000 or less, plus $1.50 for each additional
one thousand dollars ($1,000) of gross receipts per annum. Issuance of a
business license requires prior approval of a Conditional Use Permit.
C. Paragraph 3 (Classification C), Group 1 is amended to read:
Group 1: Every person engaged in business or acting as a general or
engineering contractor (B or A); plumbing contractor (C-36); electrical
contractor (C-10) shall pay an annual license tax of $322.
D. Paragraph 5 (Classification E), Groups 2, 3 and 4 are amended to read:
Group 2: Cigarette machines: every person engaged in the business of
operating any cigarette vending machine not otherwise specifically covered
by this chapter where such operation is incidental to, or in conjunction with,
some other business being operated on the particular premises shall pay an
annual license tax of one hundred dollars ($100) on gross receipts of $10,000
or less, plus $1.50 for each additional one thousand dollars ($1,000) of gross
receipts derived from the conduct of business within the city.
14
• • i
Group 3: Vending machines: every person engaged in the business of
operating any vending machine, vending any service or product, and not
specifically covered by this chapter, where such operation is incidental to, or
in conjunction with, some other business being operated on the particular
premises shall pay an annual license tax of one hundred dollars ($100) on
gross receipts of $10,000 or less, plus $1.50 for each additional one thou+ and
dollars ($1,000) of gross receipts derived from the conduct of business within
the city.
Group 4: Where cigarette machine and/or vending machine owned by
proprietor of business located within city: A proprietor of a business located
within the city that is taxed on the basis of gross receipts under this Section,
and that owns and operates a cigarette and/or other vending machine as a part
of that business, shall include the gross receipts from the cigarette and/or
vending machine with the gross receipts of the business. If the business is
taxed on a basis other than on gross receipts under this Section, the revenues
from the cigarette and/or vending machine shall be taxed as set forth in
Group 3 above.
Section 2. Section 5.04.220 of Title 5, Chapter 5.04 of the Hermosa Beach Municipal
Code is amended to read as follows:
5.04.220 . Businesses not specified In this chapter.
Every business not specified in this chapter shall pay an annual
license tax equal to the tax payable by the business category most
comparable as determined by the license collector, plus annual cost of
living adjustments as provided for by Section 5.04.230.
Section 3. Section 5.04230 of Title 5, Chapter 5.04 of the Hermosa Beach Municipal
Code is amended to read as follows:
5.04.230 Annual cost of living adjustment of taxes.
Taxes imposed in this chapter on a basis other than a percentage of
gross receipts shall be adjusted on an annual basis using the percentage increase in the
cost of living as calculated by the United States Bureau of Statistics for the Los Angeles -
Anaheim -Riverside Standard Metropolitan Statistical Area.
15
• •
Section 4. Effective Date. This Chapter shall become effective immediately upon the
date that this Ordinance is confirmed and approved by the voters of Hermosa Beach at
the Municipal General Election of November 6, 2007.
Section 5. Amendment or Repeal. Sections 5.04.200 and 5.04.220 of the Hermosa
Beach Municipal Code may be repealed or amended by the City Council without a vote
of the people. However, as required by Article XIIIC of the Califomia Constitution,
voter approval is required for any amendment provision that would increase the rate of
any tax levied pursuant to this Ordinance.
Section 6. Severability. If any section, subsection, sentence, clause, phrase, or
portion of this Ordinance is for any reason held to be invalid or unenforceable by a court
of competent jurisdiction, the remaining portions of this Ordinance shall nonetheless
remain in full force and effect. The people hereby declares that they would have adopted
each section, subsection, sentence, clause, phrase, or portion of this Ordinance,
irrespective of the fact that any one or more sections, subsections, sentences, clauses,
phrases, or portions of this Ordinance be declared invalid or unenforceable.
Section 7. Execution. The Mayor is hereby authorized to attest to the adoption of
this Ordinance by the voters of the City by signing where indicated below.
I hereby certify that the foregoing Ordinance was PASSED, APPROVED and
ADOPTED by the people of the City of Hermosa Beach voting on the 6th day of
November, 2007.
Mayor
ATTEST:
APPROVED AS TO FORM:
City Clerk City Attorney
Date:
16
•
Background Material
17
1
Honorable Mayor and Members of
the Hermosa Beach City Council
June 28, 2007
Regular Meeting of
July 10, 2007
ADOPTION OF RESOLUTION SUBMITTING A MEASURE TO THE VOTERS ON THE
NOVEMBER MUNICIPAL ELECTION BALLOT TO INCREASE THE
BUSINESS LICENSE TAX ON SPECIFIC BUSINESSES
RECOMMENDATION:
That the City Council submit a measure to the voters on the November Municipal
election ballot to increase the Business License Tax as set forth below and on the
attached schedules. A 4/5 vote by the City Council is required In order to place the
measure on the ballot since it is a general tax increase.
Adoption of the attached resolution will place the ordinance (also attached) on the
November 2007 ballot.
BACKGROUND:
The Business License Tax was last revised by the City Council in 1985 and 1986 and
approved by voters in 1989. The present business license tax has a number of
categories and a variety of methods for computing the tax. The estimated business
license tax will generate almost $800,000 for the 2007-08 fiscal year. The total number
of business licenses Issued is 2,832, which is an average of $282 per license.
This item was originally presented on June 12, 2007. The City Council continued
the item, requesting that the proposed rate schedule for commercial property be
changed to cover a wider range of square footage. That change Is reflected
below. Clarification was also needed regarding which businesses would use the
gross receipts rate. The attached schedules list those categories of businesses.
ANALYSIS:
The proposed changes Include: an increase In the amount paid by contractors; an
increase In the rate for apartments/hotels; addition of a category for rental of commercial
property based on square footage; changing restaurants from a flat amount to the gross
receipts method of calculation; changing health, fitness, and massage businesses from
a flat fee to a square footage basis; an Increase in the gross receipts rate; consolidation
of gross receipts rates into a single rate.
The proposed change for each category, except businesses on gross receipts, Is
shown below. Businesses currently on gross receipts are not shown as a
category In this report because there are a variety of businesses on that method.
Please see the attached schedules for businesses that are currently on the gross
receipts rate method
18
Category
Present Rate
Proposed Rate
Contractors
$224
$322
This proposed rate is based on the average of Manhattan Beach, Redondo Beach and
Torrance. No change is proposed for the category of Tub -Contractor. This change Is
estimated to Increase revenue by $46,746. A copy of the rates charged by the three
other cities Is attached.
Category
Present Rate
Proposed Rate
Apartments/Hotels
$29 per unit
$44 per unit
This proposed rate increase Is consistent with the proposal to Increase the gross receipt
rate. This change Is estimated to increase revenue by $50,220.
Category
Present Rate
Proposed Rate
Commercial Property
None
Gross floor area of 0-500
sq. ft., $100 with an
additional $100 for each
1,500 sq. ft.
This category Is one for which the Cityy previously required a business license. Since the
city does not currently have data on the square footage of leased or rented commercial
property, this revenue Is estimated at $10,000. The fee schedule above Is changed to
reflect the request at the meeting of 6112107 to cover a wider range of square
footage.
Category
Present Rate
Proposed Rate
Restaurants
Rates vary
$100 min $2.00 per
$1,000 over $10,000
This change of calculation would generate an additional $53,782 over the amount paid
on the several rates now charged to restaurants.
Category
Present Rate
Proposed Rate
Health, Fitness, Massage
$139 plus $10 per
employee
$250 for 1,000 sq. ft, $250
each additional 1,000 sq. ft.
plus $25 per employee
Since the square footage of these businesses Is not readily available, an estimate of this
Increase Is not calculated.
Gross Receipts Rate Change
There are a variety of businesses on a gross receipts rate In the present ordinance. The
proposal Is to set one rate for all businesses on the gross receipts method of calculation.
It is proposed that the rate be set at minimum of $100 for the first $10,000 and $2.00 per
$1,000 for the amounts over $10,000. In addition the cap for businesses In A-1 is
increased from $1,100 to $2,200. This Impacts seven auto sales and wholesale
businesses. The overall Impact of changing the rate for these businesses is an increase
in revenue of $173,222 per year.
19
• •
The attached schedules show which businesses will have a gross receipts rate, what the
impact of the proposed change is for each category and the range of gross receipts
amounts in the category. In addition, the current number of businesses in each category
Is shown. The gross receipts rate results in a lower fee for some businesses that are at
a lower gross receipts level. The increase in overall tax collected results from those
having the higher gross receipts.
SUMMARY:
The total revenue potential of these proposed changes is $333,970 per year. For
illustrative purposes, if this amount were added to the 2007-08 revenue of approximately
$800,000, the new revenue total would be $1,133,970. Assuming that the same
numbers of business licenses were issued, the new average would be $400. Due to the
fact that business licenses renew at different times and since the Increase would only be
effective for a portion of the fiscal year, the full Impact of the change would not be
recognized until 2008-09.
As presented In the 2007-08 Budget Message, this proposal Is part of the overall
strategy to increase revenue growth which will allow us to continue providing the same
level of services to residents and businesses.
Respectfully submitted,
Viki Copeland Stephen Burrell
Finance Director City Manager
20
BUSINESS LICENSE CATEGORIES
Ukn k ^4
Bro
{tkr i • 4--+* 't' •.
% GrossRecelp
t1e, 1W'f L224^
rl Ax.a�L.m `l ^_
��w,s ,Y° FF�ro"9f.
r nte
%. 3 YiVE
et7S'x
NewLcenseeiegsh�74
-,.12: 2 i. 4 , '''',
1321 Restaurant w/o Uquor
6
35,000 or less
181.00
100.00 -150.00
1
36,000 - 50,000
152.00 -180.00
6
51,000 -100,000
•
182.00 - 280.00
9
101,000 - 200,000
282.00 - 480.00
5
201,000 - 300,000
482.00 - 680.00
4
301,000 -400,000
•
682.00 - 880.00
2
501,000-600,000
"
1,082.00-1,280.00
1
601,000 - 700,000
"
1,282.00 -1,480.00
1,482.00 -1,680.00
3
701,000 - 800,000
2
901,000 -1,000,000
1,882.00 - 2,080.00
2
1,000,001 -1,100,000
2,082.00 - 2,280.00
1
2,000,001 - 2,100,000
4,080.00 - 4,280.00
Total 42
B22A Restaurant wBeer Wine, No Entertainment
2
188,700 -195,900
648.00
457.40 - 471.80
2
399,200 - 509,000
I 878.40 -1,098.00
Total 4
B22B Restaurant w/BeeriWine w/Entertainment - No businesses in this category
•
B22C Restaurant wBeerlWine, No Entertainment, 1,000 - 2,000 SF
9
49,900 - 299,900
866.00
179.80 - 679.80 I
5
333,200 -412,100
746.40 - 904.20
4
502,900 - 731,900
1,085.80 -1,543.80
3
830,400 -1,110,600
1,740.80 - 2,301.20
Total 21
B22D Restaurant
w/Beer!WIne w/Entertainment,
150,600 -160,500
1,000 - 2,000 SF
1,294.00 381.20 - 401.00
2
1
880,000
1 1,840.00
Total 3
B22E RestaurantwBeerlWine, No Entertainment> 2,000 SF
4
75,500 - 288,100
1,082.00
231.00 - 656.20
5
374,000 - 675,100
828.00 -1,420.20
2
956,300 - 978,300
1,992.60 - 2,036.60
1
1,187,300
2,454.60
Total 12
1322F Restaurant w/BeeriWine w/Entertainment > 2,000 SF - No businesses In this category
21
1 fiIr 4'ii',l ? .f Ui+` �F i+< i y 'ta�'IS�"' „a�11W 'NCI7 'i�'i '"g
r., Ani eFofrs rGrossReceipts ,
.,BdaleSSBS;sc ° , a. fi.a4. .t'./-
.. "C.�0. .t`
i CYYu_nen'
... Feet
Ne�vLicensetFee-L
B23A Restaurant wlLiquor
499.20 — 813.80
2
I 533,100-1,114,700
1,294.00
1,146.20-2,309.40
1
Total 2
B23B Restaurant w/Liquor
w/Entertainment
640,200 — 3,3077,600
_
1,725.00
1,360.40 — 6,235.201
3
ota
B23C Restaurant w/Liquor, No Entertainment
2
209,600 — 366,900
1,512.00
499.20 — 813.80
2
1,729,700 — 2,871,800
3,539.40 — 5,823.60
1
3,261,500
'
6,603.00
Total 5
B23D Restaurant w/Llquor
w/Entertainment
1
153,300
1,941.00
386.60
5
1,021,800 —1,763,300
2,123.60 — 3,606.60
1
4,492,400
1 9,064.80
Total 7
B23E Restaurant w/Liquor, No Entertainment > 4 000 SF
1
890,200 1,725.00
1,860.40
3
1,344,000 — 3,290,700
1
2,768.00 — 6,661.40
Total 4
B23F Restaurant w/L quor w/Entertainment > 4,000 SF
1
566,300
2,159.00
1,212.60
Total 1
There are no businesses in the following five categories:
B -24A Cocktail Bar No Entertainment — Less than
2,000 sq. ft.
B -24B Cocktail Bar wlEntertainment — Less than
2,000 sq. ft.
B -24C Cocktail Bar No Entertainment — More than
2,000 sq. ft, less than 4,000 sq. ft.
B -24D Cocktail Bar w/ Entertainment— More than
2,000 sq. ft, Tess than 4,000 sq. ft.
B -24E Cocktail Bar No Entertainment> 4,000 SF
B24F Cocktail Bar w/Entertainment > 4,000 SF
1
502,700
2,159.00
1,085.40
Total 1
There are no businesses in the following six categories:
B -25A Beerne Bar - No Entertainment — Less than
1,000 sq. ft.
B -25B Beer/Wine Bar -w//Entertainment— Less than
1,000 sq. ft.
� 4- V �L'.1 v 2' Ad a,.. 4
umber of r Gross Receipts
Bus'inesses:e rrr e �rxty,=- :4p . �.s ��
i�A� f..YWarrE 14 -7E-- 'V .,r ^e+[.A
t,Gurrent Fee. `�s' Newticense Fee R.
of., ' ,— ice- ,a:.' � I w i. -
22
•
•
B -25C Beer/Wine
Bar - No Entertainment- More than 1,000, Tess than 2,000 sq. ft.
B -25D Beer/Wine
Bar - w/Entertainment- More than 1,000, less than 2,000 sq. ft.
B -25E BeerlWine
Bar- No Entertainment -2,000 sq. ft. or more
B -25F Beer Wine
Bar - w/Entertainment - 2,000 sq. ft. or more
11
301,000 - 358,624
400,000 - 498,000
Al Auto Dealer/Wholesale
682.00 - 797.25
I _ 100.90- 280.00
1 543.53-1,b76.68
I 1,197.49 -1 820.00
8
10,000 -100,000
102,149 - 498,342
! 50.00 - 86.00
! 86.86 -245.34
-,- 269.50 - 394.00
5 1
3 I
558,744 - 870,000
7
Over 1,104,004
I 487.60 -1,100.00
14,299.99 -28,852.76
;
2,200.00 max
Total 23
Total 173
. •
-
00A
. 10 _250 :42
368.00
A22 Laundry/Dry
Cleaning
10,000 - 85,210
1
75.00 -150.211
209.00
7
1
144,000
Total 1 I
2
339,818 - 390,672
+ 404.82 -455.67
i
759.64 - 861.34
Total 10
° -- Curr nt >ee .
, } �".
, e . eense ee�
S z , x 3x1
'Witt-®
B20 Specialty or Antique Shop
A23 Laundromat
1
4,400
75.00
88.80
2
51,830 - 60,505
110.56 -117.93
183.66 - 201.01
1
125,485
173.16
330.97 '
_�-
A23A Leased Laundry
2
Equipment
151.48 - 261.40
( 35,733 - 90,691
1 69.31-110.53
A24 Hos .ltal/Sanitarium/Mortuary
2
1.
3,231.21 -.5,754.00
1,575,605 - 2,837,000
.
1,405.76 - 2,477.95
.
Total 2
A25 Retail Sales
4
100.00 -120.00
122.78 -197.38
26
20,000 or less
100.00
20
14,500 - 58,690
! 101.39 -138.69
60,000 - 97,000
41
100,270 -191,235180.27
- 271.00
... ,
280.54 - 462.47
21
200,000 - 296,183
1 280.00 - 376.18
480.00 - 672.37
11
301,000 - 358,624
400,000 - 498,000
I 381.00 - 438.62
682.00 - 797.25
12
I 480.00 - 578.00
l 880.00-1 076_00
15
514,379 - 998,872
1,003,529 -4,835,090
I. 594.38 -1,078.87
I 1,083.53 - 4,915.09
1,108.76 -2,077.74.
2,087.06 - 9,750.18
13
3
14,219,987 - 28,772,759
14,299.99 -28,852.76
;
28 519.97 - 57,625.52
l
Total 173
A26 Telephone Company
1
9,287,878
7,008.41
18,655.76
Total 1 I
um er ofc
, s Oe ses<
+ , F Grass, ece pts'
'
v
° -- Curr nt >ee .
, } �".
, e . eense ee�
S z , x 3x1
'Witt-®
B20 Specialty or Antique Shop
23
4 1,140 — 43,838 100.00
I
— 123.84
i 100.00
— 167.68 i
3 f 111,000 — 322,828 191.00 — 402.83
! 302.00
— 725.66 !
Total 7 !
B26 Motion Picture — No business In this category
E2 Cigarette Machine
64.07
•
137.52 i
1 28,760 I
Total 1
-i
E3 Vending Machine
—1
1 500
50.00
1
100.001
1 68,376
93.77
216.75
Total 2
r i I
_::
1
.E4pigaretteNending Machines — Gross receipts added into Gross receipt of business
24
REVISION TO BALLOT LANGUAGE
Shall an ordinance be adopted amending the City's business licenses
tax ordinance to 1) consolidate categories so that restaurant/bar
establishments pay based on volume of business 2) add a new
category for commercial landlords 3) increase rates for
hotels/apartments, contractors, retail, health/fitness/massage
businesses, auto dealers, laundry/dry leaning, laundromats,
animal hospitals, vending machines and telephone companies, with
revenue continuing to be used to support essential City services,
with continued public review of the City Budget?
NO
b
SUPPLEMENTAL
1?Jrn0RAprtn�(
• •
Mayor and Members
of the City Council
July 26, 2007
City Council Meeting
July 31, 2007
ADOPTION OF RESOLUTIONS REGARDING CONSOLIDATION
WITH THE COUNTY, ARGUMENT AND IMPARTIAL
ANALYSIS, AND REBUTTAL ARGUMENTS FOR A BUSINESS
LICENSE TAX MEASURE TO BE PLACED ON THE BALLOT OF
THE GENERAL MUNICIPAL ELECTION OF NOVEMBER 6, 2007
Recommendation:
If the Council acts this evening to place a business license tax measure on the November 6, 2007
ballot, the following actions must also be taken:
• Decide on the filing of a written argument by Council in favor of the measure; and
• Adopt the attached three resolutions to:
(1) Request election consolidation with the County for the additional measure;
(2) Set priorities for written arguments and direct the City Attorney to prepare an
impartial analysis; and
(3) Provide for the filing of rebuttal arguments for the measure.
Background:
At its meeting of July 24, 2007, the City Council considered placing two City -initiated measures
— business license tax and utility user tax (UUT) — on the ballot of the November 6, 2007 General
Municipal Election, along with the Pier Plaza measure (per referendum). At that meeting, the
Council adopted all resolutions necessary to place the Pier Plaza parking measure (with revised
question) and the UUT measure (also with revised question) on the ballot, but continued its
consideration of the business license tax measure to this evening, which is the last opportunity to
place measures on the ballot in order to meet all County deadlines.
Prior to adopting the three attached resolutions, the Council must decide on the filing by Council
of a written argument regarding the additional measure (if approved this evening for placement
on the ballot). PLEASE NOTE: The City Clerk has fixed 6:00 p.m. Tuesday, August 14, 2007
as the deadline (FOR THIS MEASURE ONLY) for the submittal of direct arguments and
the impartial analyses (to meet the 14 -day requirement from the date the election for this measure
is called).
1
2
Resolutions (attached) for consideration, amendment if necessary, and adoption:
1. RESOLUTION NO. 07-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY
OF LOS ANGELES TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO
BE HELD ON TUESDAY, NOVEMBER 6, 2007, WITH THE UDEL AND SCHOOL
ELECTION TO BE HELD ON THAT DATE PURSUANT TO SECTION 10403 OF
THE ELECTIONS CODE, FOR THE SUBMISSION TO THE VOTERS OF A
MEASURE REGARDING THE CITY'S BUSINESS LICENSE TAX
2. RESOLUTION NO. 07-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, SETTING PRIORITIES FOR FILING A WRITTEN ARGUMENT FOR
A MEASURE REGARDING THE CITY'S BUSINESS LICENSE TAX TO BE
SUBMITTED AT THE GENERAL MUNICIPAL ELECTION TO BE HELD
TUESDAY, NOVEMBER 6, 2007, AND DIRECTING THE CITY ATTORNEY TO
PREPARE THE IMPARTIAL ANALYSIS
Deadline of 6:00 p.m. Tuesday, August 14, 2007 for filing direct arguments.
3. RESOLUTION NO. 07 -
Noted:
Stephen R. B. e1(,(f�iiy ivtanager
Attachments: Resolutions for adoption
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR
A MEASURE REGARDING THE CITY'S BUSINESS LICENSE TAX TO BE
SUBMITTED AT THE GENERAL MUNICIPAL ELECTION TO BE HELD
TUESDAY, NOVEMBER 6, 2007
Deadline of 5:00 p.m. Friday, August 24, 2007 for filing rebuttal arguments. (The
City Clerk's office will be open, if necessary, on August 24 from 8:00 a.m. to 5:00 p.m.
only for the purpose of accepting rebuttal arguments.
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Elaine Doerfling, City Cler / 6
RESOLUTION NO. 07-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF IIERMOSA BEACH,
CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY
OF LOS ANGELES TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO
BE HELD ON TUESDAY, NOVEMBER 6, 2007, WITH THE UDEL AND SCHOOL
ELECTION TO BE HELD ON THAT DATE PURSUANT TO SECTION 10403 OF THE
ELECTIONS CODE, FOR THE SUBMISSION TO THE VOTERS OF A MEASURE
REGARDING THE CITY'S BUSINESS LICENSE TAX
WHEREAS, on June 12, 2007, the City Council of the City of Hermosa Beach adopted
Resolution No. 07-6544 calling a General Municipal Election to be held Tuesday, November 6,
2007, for the purpose of electing two Members of the City Council, a City Clerk and a City
Treasurer, and Resolution No. 07-6545 requesting consolidation with the UDEL and School
Election; and
WHEREAS, on July 24, 2007, the City Council of the City of Hermosa Beach adopted
the following: (1) Resolution No. 07-6556 calling a General Municipal Election to be held
Tuesday, November 6, 2007, for the purpose of submitting to the voters an ordinance regarding
the City's Utility User Tax, (2) Resolution No. 07-6557 calling a General Municipal Election
to be held on the same date for the purpose of submitting to the voters an ordinance (per
referendum petition) regarding Pier Plaza on-site parking requirements, and (3) Resolution No.
07-6558 requesting consolidation (for the two measures) with the UDEL and School Election;
and
WHEREAS, the City Council is also submitting to the voters an ordinance regarding the
City's business license tax; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the
UDEL and School Election to be held on the same date and that within the city the precincts,
polling places and election officers of the two elections be the same, and that the County
Election Department of the County of Los Angeles canvass the returns of the General Municipal
Election and that the election be held in all respects as if there were only one election;
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA
BEACH, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND
ORDER AS FOLLOWS:
SECTION 1. That pursuant to the requirements of Section 10403 of the Elections Code,
the Board of Supervisors of the County of Los Angeles is hereby requested to consent and agree
to the consolidation of a General Municipal Election with the UDEL and School Election on
Tuesday, November 6, 2007, for the purpose of electing certain officers and for the submittal of
a measure. The question to appeal on the ballot is as follows:
Shall an ordinance be adopted amending the City's business license tax
ordinance to 1) consolidate categories so that restaurant/bar
establishments pay based on volume of business, 2) add a new category
for commercial landlords, 3) increase rates for hotels/apartments,
contractors, retail, health/fitness/massage businesses, auto dealers,
laundry/dry cleaning, laundromats, animal hospitals, vending machines
and telephone companies, with revenue continuing to be used to support
essential City services, with continued public review of the City
YES
NO
Budget?
SECTION 2. That the county election department is authorized to canvass the returns
of the General Municipal Election. The election shall be held in all respects as if there were
only one election, and only one form of ballot shall be used.
SECTION 3. That the Board of Supervisors is requested to issue instructions to the
county election department to take any and all steps necessary for the holding of the
consolidated election.
SECTION 4. That the City of Hermosa Beach recognizes that additional costs will be
incurred by the County by reason of this consolidation and agrees to reimburse the County for
any costs.
SECTION 5. That the City Clerk is hereby directed to file a certified copy of this
Resolution with the Board of Supervisors and the county election department of the County of
Los Angeles.
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SECTION 6. That the City Clerk shall certify to the passage and adoption of this
Resolution; shall enter the same in the book of original Resolutions of said City; and shall make
a minute of the passage and adoption thereof in the minutes of the meeting at which the
Resolution is adopted.
PASSED, APPROVED, and ADOPTED this 31st day of July, 2007.
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney
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RESOLUTION NO. 07-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH, CALIFORNIA, SETTING PRIORITIES FOR
FILING A WRITTEN ARGUMENT FOR A MEASURE REGARDING
THE CITY'S BUSINESS LICENSE TAX TO BE SUBMITTED AT THE
GENERAL MUNICIPAL ELECTION TO BE HELD TUESDAY,
NOVEMBER 6, 2007, AND DIRECTING THE CITY ATTORNEY TO
PREPARE THE IMPARTIAL ANALYSIS
WHEREAS, a General Municipal Election is to be held in the City of Hermosa Beach,
California, on Tuesday, November 6, 2007, at which there will be submitted to the voters the
following measure:
Shall an ordinance be adopted amending the City's business license tax
ordinance to 1) consolidate categories so that restaurant/bar
establishments pay based on volume of business, 2) add a new category
for commercial landlords, 3) increase rates for hotels/apartments,
contractors, retail, health/fitness/massage businesses, auto dealers,
laundry/dry cleaning, laundromats, animal hospitals, vending machines
and telephone companies, with revenue continuing to be used to support
essential City services, with continued public review of the City
YES
NO
Budget?
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA
BEACH, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND
ORDER AS FOLLOWS:
SECTION 1. That the Hermosa Beach City Council hereby authorizes Councilmember
to file a written argument in favor of the measure specified above, accompanied
by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article
4, Chapter 3, Division 9 of the Elections Code of the State of California, and to change the
argument until and including the date fixed by the City Clerk (6:00 p.m. Tuesday, August 7,
2007), after which no arguments for or against the City measures may be submitted to the City
Clerk.
Each argument shall be filed with the City Clerk, signed, with the printed name(s) and
signature(s) of the author(s) submitting it or, if submitted on behalf of an organization, the name
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of the organization, and the printed name and signature of at least one of its principal officers
who is the author of the argument. All arguments shall be accompanied by the Form of
Statement To Be Filed By Author(s) of Arguments.
SECTION 2. That the City Council directs the City Clerk to transmit a copy of the
measure to the City Attorney, unless the organization or salaries of the office of the City
Attorney are affected. The City Attorney shall prepare an impartial analysis of the measure
showing the effect of the measure on the existing law and the operation of the measure. If the
measure affects the organization or salaries of the office of the City Attorney, the City Clerk
shall prepare the impartial analyses. The impartial analyses shall be filed by the date set by the
City Clerk for the filing of primary arguments (5:00 p.m. Tuesday, August 14, 2007).
SECTION 4. That the City Clerk shall certify to the passage and adoption of this
Resolution; shall enter it into the book of original Resolutions, and shall make a minute of the
passage and adoption thereof in the minutes of the meeting at which the Resolution is adopted.
PASSED, APPROVED and ADOPTED on this 31st day of July, 2007.
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney
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RESOLUTION NO. 07-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA
BEACH, CALIFORNIA, PROVIDING FOR THE FILING OF REBUTTAL
ARGUMENTS FOR A MEASURE REGARDING THE CITY'S BUSINESS
LICENSE TAX TO BE SUBMITTED AT THE GENERAL MUNICIPAL
ELECTION TO BE HELD TUESDAY, NOVEMBER 6, 2007
WII•EREAS, Section 9220 and 9285 of the Elections Code of the State of California
authorizes the City Council, by majority vote, to adopt provisions to provide for the filing of
rebuttal arguments for City measures submitted at municipal elections;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA
BEACH, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND
ORDER AS FOLLOWS:
SECTION 1. That pursuant to Sections 9220 and 9285 of the Elections Code of
the State of California, when the City Clerk has selected the arguments for and against the
measure which will be printed and distributed to the voters, the City Clerk shall immediately
send a copy of the argument in favor of the measure to the author of the argument against the
measure, and a copy of the argument against the measure to the author of the argument in favor
of the measure. The author or a majority of the authors of an argument may prepare and submit
a rebuttal argument not exceeding 250 words, or may authorize in writing any other person or
persons to prepare, submit, or sign the rebuttal argument. A rebuttal argument may not be
signed by more than five people. Rebuttal arguments shall be accompanied by the Form of
Statement To Be Filed By Author(s) of Argument.
The rebuttal arguments shall be filed with the City Clerk, signed, with the printed
name(s) and signature(s) of the author(s) submitting it or, if submitted on behalf of an
organization, the name of the organization and the printed name and signature of at least one of
its principal officers, not more than 10 days after the final date for filing direct arguments. The
deadline for submitting rebuttal arguments will be 5 p.m. Friday, August 24, 2007. Rebuttal
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arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument
shall immediately follow the direct argument which it seeks to rebut.
SECTION 3. That the provisions of Section 1 shall apply only to the election to
be held on November 6, 2007, and shall then be repealed.
SECTION 4. That the City Clerk shall certify to the passage and adoption of this
Resolution, shall enter the same into the book of original Resolutions of said City, and shall
make a minute of passage and adoption thereof in the minutes of the meeting at which the
Resolution is adopted.
PASSED, APPROVED and ADOPTED on this 31st day of July, 2007.
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney
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