CC - Item 9D - Annual Business License Fee Schedule for FY2010-11ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGE
DATE: JUNE 22, 2010
SUBJECT: ANNUAL BUSINESS LICENSE FEE SCHEDULE FOR FY2010-11
SUMMARY
The City provides various individualized services (i.e. inspections, permits, variances,
etc.) that are not of general benefit. Historically, many of these individualized services
have been provided at a cost greater than the fees being charged for them thus
resulting in subsidies of the remaining costs from the general taxpayers. As a matter of
routine fee maintenance and to keep pace with increasing costs of individualized
services, the fees charged to users need to be reviewed on a regular basis, preferably
each year.
Rosemead's business license fees have not been adjusted for some 18 years, and are
proposed to be adjusted gradually. Increasing business license fees to appropriate
levels in a single year could present a hardship in some cases; therefore, most
adjustments do not exceed 20%. It is important to note, with all the fee increases, that
the proposed fee adjustments and new fees never exceed the cost of providing the
service. However, not all fees need to be increased as some are controlled by statute.
Consequently, not every Rosemead fee is being recommended for an adjustment this
year.
Furthermore, for ease of identifying proposed fee adjustments, new and increased fees
will be underlined, bolded and highlighted in yellow in Section 3 "Business License
Fees" of the Annual Comprehensive Fee Schedule, Resolution 2010-46 (Attachment A).
The column with the current County fees has been retained in the resolution for
purposes of comparison but not as a basis for determining fee recommendations.
Staff Recommendation
It is recommended that City Council members approve Section 3 "Business License
Fees" and Section 4 "Other Fees" of the Annual Comprehensive Fee Schedule for FY
2010-11. Resolution No. 2010-46.
APPROVED FOR CITY COUNCIL AGENDA: ITEM NUMBER: q D
City Council Meeting
May 25, 2010
Paoe 2 of 2
ANALYSIS
Requested fee adjustments or new fees in the attached resolution are for business
license fees, filming permits and related services, and special events. All of the fee
increases will cover some, but not all of the costs incurred to provide the related
services but will reduce the amount currently subsidized by the general taxpayers.
Keeping pace with cost increases through annual fee adjustments avoids the need for
much larger "catch up" fee increases that result when adjustments are made less
frequently.
In 1992 the City Council approved setting business license fees equal to those of Los
Angeles County (County). However, over the following 18 years business license fees
have not been adjusted to keep up with fees set by the County. Over time, County fees
have risen dramatically compared With the fee schedule in use by the City today. In the
interest of remaining business friendly, City Council members indicated concerns about
using County fees as the benchmark for Rosemead Business License Fees. Moreover,
Council discussed the potential to increase most fees by 20% above existing levels with
the exception of certain businesses that are known to have significantly higher use of
City services such as adult businesses, body art establishments, health clubs, etc.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
Steven Brisco
Finance Director
Attachments: A - Resolution No. 2010-46
Attachment A
RESOLUTION 2010-46
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, UPDATING BUSINESS LICENSE FEES AND CHARGES FOR SERVICES
FOR FY 2010-11
WHEREAS, the Municipal Code of the City of Rosemead provides that certain filing
fees, permit fees, inspection fees, deposits, and conditions of service may from time to time
be established by the City Council, and
WHEREAS, the City Council of the City of Rosemead has determined that the cost of
providing certain services is not of general benefit but of benefit to the individual and,
therefore, certain filing fees, permit fees, inspection fees and deposits should be required to
pay for materials and special services performed by the City staff, and
WHEREAS, after the passage of Propositions 4 and 218, local governments were
made to charge for the costs of services to those who benefited, and
WHEREAS, for certain services performed, the cost of providing said services greatly
varies and is contingent upon the specifics of each project or application. The City Council
finds it more appropriate to require an initial deposit to guarantee the applicant will reimburse
the City for costs associated. If the costs exceed the deposit, the applicant shall be
responsible for additional deposits or reimbursement necessary to offset cost. If cost of
service performed is less than deposit, then the difference shall be refunded to applicant,
and
WHEREAS, based upon fee justification reports on file with the City Clerk and the
City Finance Director, the City Council finds that the fees included in this Resolution
represent a portion of the actual costs of the services provided or facilities funded and,
therefore, there is a rational relationship between the fees charged and the services and
facilities funded. and
WHEREAS, the City Council finds that since the fees represent a portion of the
actual costs of the service or facilities provided, there is a reasonable relationship between
the amount of the fee charged and the costs of the services provided to the person paying
the fee, and
WHEREAS, the City Council desires to adjust fees for certain services from time to
time and to incorporate all adjusted and/or new fees for services provided into one
comprehensive resolution, and
WHEREAS, the City Council finds it necessary to adjust fees for services, and to
maintain a comprehensive document which incorporates most or all fees for services
provided by the City into one Resolution, however, the City Manager shall have the authority
to establish staff billing rates and equipment charges by Administrative Policy on an as
needed basis, and
WHEREAS, after notifying those parties interested in fee revisions the City Council
proposed adoption of the Resolution on June 22, 2010.
1
Attachment A
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemead
as follows:
SECTION 1. That the general regulations and project deposit guidelines are
established as follows:
A. TIME AND MATERIALS DEPOSITS - Certain types of applications have been
determined by the City Council to benefit the applicant. Therefore, these deposit projects
will be billed on a time and materials basis including applicable administrative overhead.
Project costs include City Attorney, City Staff, City Engineer, City Landscape Consultant and
other fees including overhead costs for staff and contract personnel. All deposited fees shall
be due and payable immediately upon presentation of a billing statement by the City. All
deposited fees not used to process and manage the application shall be returned after
receipt and payment of final project-related bills. Staffs billing rates and equipment charges
are established periodically by Administrative Policy of the City Manager.
B. BILLING - Failure to pay all charges invoiced within thirty (30) days of the date of
invoice shall be considered a sufficient cause to stop processing until full payment is made.
The City will accept only cash, cashier's checks, bank checks or credit/debit cards; payment
by credit/debit card may not exceed $5,000 (five thousand). Work on a deposit project will
not commence until payments have cleared the bank and funds have been transferred to the
City. Projects shall not be deemed approved until all City fees have been paid in full.
C. LATE PAYMENT CHARGE - Outstanding balances that are not paid in full within
twenty-five (25) days after the statement is rendered shall accrue a late payment fee of one
percent (1 per month.
D. REVISIONS - Fees set forth for plan check and development review shall be for the
initial application. See attached fee listing for additional costs for revisions.
E. RECORDS - Records of deposit projects are available by contacting the City. Project
deposit updates or closing out of projects shall be accompanied by project summary sheets,
detailing costs of staff time, City Attorney, City Engineer, City Landscape Consultant, and
other consultation charges.
F. - HARDSHIPS - Fees shall be paid in full for all development projects. The City
recognizes that in unique and special circumstances financial hardship may preclude the full
payment of fee prior to application for permits. In such cases, the applicant shall apply for a
payment deferral agreement with the City Manager.
In no case shall the fees be waived or partially paid when the project is completed. The
applicant shall state in writing the reasons for deferral. The City Manager shall inform the
Community Development Director and Finance Director in writing of the fee deferral and
reasons for the deferral. In no case shall the City Manager permit less than half of the fee to
be initially paid.
G. OTHER FEES AND CHARGES FOR SERVICE - Applicants should be aware that
they may be subject to other fees and charges for service established periodically by
Administrative Policy of the City Manager or by Ordinance.
2
Attachment A
H. EXEMPTION OF FEES - Where it is verified by the City Manager or appropriate
department head that the City is the applicant or party to be charged, fees will be waived.
Additionally where a contractor has been hired on behalf of the City, fees may be waived at
the discretion of the City Manager.
SECTION 3. That the Business License Fees are established as follows:
Current Current Proposed
Name Rosemead L.A. County Rosemead
Acupressure Establishment (New License)' $300 $2,268
Acupressure Establishment (Renewal) $100 $254
Accupressurist (New License)(New fee)" $0 $351
Accupressurist (Renewal)(New fee) $0 $234
Adult Business:
Book Store (New License)(New fee) $0 $2,228
Book Store (Renewal)(Newfee) $0 $1,712
Cabaret (New License)(New fee) $0 $1,981
Cabaret (Renewal)(New fee) $0 $1,712
Motion Picture Arcade (New License)(New fee) $0 $1,988
Motion Picture Arcade (Renewal)(New fee) $0 $1,712
Motion Picture Theater (New License)(New fee) $0 $1,836
Motion Picture Theater (Renewal)(New fee) $0 $1,552
Theater (New License)(New fee) $0 $1,836
Theater (Renewal)(New fee) $0 $1,552
Ambulance:
Attendant (New License)` $28 $0
Attendant (Renewal) $13 $0
Owner/Operator (New License) $149 $1,435
Owner/Operator (Renewal) $41 $244
Vehicle (New License) $116 $374
Vehicle (Renewal) $108 $340
$360
$120
$351
$234
$2,228
$1,712
$1,981
$1,712
$1,988
$1,712
$1,836
$1,552
$1,836
$1,552
$34
$16
$179
$49
$139
$130
3
Attachment A
Current Current Proposed
Name Rosemead L.A. County Rosemead
Ambulette: (Non-Emergency Medical Transportation Service)*
Owner/Operator (New License)(New fee) $0
Owner/Operator (Renewal)(New fee) $0
Vehicle (New License)
Vehicle (Renewal)
Apartments:
5-10 Units (New License)
5-10 Units (Renewal)
11-15 Units (New License)
11-15 Units (Renewal)
16-Over Units(Renewal)
16-Over Units (New License)
Beauty Salon (Skin and Nail Care)(New License)*
Beauty Salon (Skin and Nail Care)(Renewal)
Billiard Room (New License)*
Billiard Room (Renewal)
Bingo:
Bingo Games (New License)(New fee)
Bingo Games (Renewal)(New fee)
Bingo Manager (New License)(New fee)
Bingo Manager (Renewal)(New fee)
Boarding House (New License)
Boarding House (Renewal)
Body Art Establishment (New License)(New fee)*
Body Art Establishment (Renewal)(New fee)
Body Art Technician (New License)(New fee)*
Body Art Technician (Renewal)(New fee)
$1,435
$244
$0
$362
$0
$327
$72
$259
$33
$185
$87
$282
$33
$185
$148
$340
$70
$223
$300
$0
$100
$0
$325
$2,092
$105
$358
$25
$50
$25
$50
$25
$50
$25
$50
$70
$282
$34
$200
$0
"$2,254
$0
$213
$0
$252
$0
$208
$179
$49
$139
$130
$86
$40
$104
$40
$178
$84
$360
$120
$390
$126
$30
$30
$30
$30
$84
$41
$2,254
$213
$252
$208
4
Attachment A
Name
Book Store (New License)
Book Store (Renewal)
Bowling Alley (New License)
Bowling Alley (Renewal)
Burglary Alarm (New License)
Burglary Alarm (Renewal)
Card Club (New License)
Card Club (Renewal)
Charitable Institutions (New License)
Charitable Institutions (Renewal)
Christmas Tree Lot
Permit
Deposit
Close Out Sale:
60 days
30 days
Coin Operated Game and Phonograph (New License)
Coin Operated Game and Phonograph (Renewal)
Cold Storage Locker (New License)
Cold Storage Locker (Renewal)
Contractors - Local Offices (New License)(New fee)
Contractors - Local Offices (Renewal)(New fee)
Dance Establishment License
Annual (New License)'
Annual (Renewal)
Youth and No-Profit (New License)
Youth and No-Profit (Renewal)
Current Current
Rosemead L.A. Counts
$295 $1,799
$105 $175
$327
$185
$18
$11
$317
$130
$1,914
$323
$0
$0
$2,177
$207
$2 $2
$2 $2
$25 $0
$150
$89
$46
$168
$60
$87
$53
$72
$49
$0
$0
$201
$131
$363
$175
$200
$100
$336 $1,771
$126 $223
$0 $0
$0 $0
5
Proposed
Rosemead
$354
$126
$392
$222
$22
$13
$380
$156 .
$2
$2
$30
$150
$107
$55
$104
$64
$86
$59
$100
$50
$403
$151
$0
$0
Attachment A
Current Current Proposed
Name Rosemead L.A. County Rosemead
Demonstrator (New License) $39 $168 $47
Demonstrator (Renewal) $25 $60 $30
Duplicate License (Reproduction of Original) $4 $91 $5
Entertainment
With dance license (New License)'
$117
$621
$140
With dance license (Renewal)
$103
$406
$124
Without dance license (New License)`
$423
$1,981
$508
Without dance license (Renewal)
$217
$406
$260
Escort Bureau (New License)'
$139
$1,864
$167
Escort Bureau (Renewal)
$84
$1,590
$101
Exhibition-Carnival (New License)
$370
$1,808
$444
Exhibition-Carnival (Renewal)
$141
$275
$169
Explosives (New License)
$153
$555
$184
Explosives (Renewal)
$141
$275
$169
Fertilizer Plant (New License)
$92
$363
$110
Fertilizer Plant (Renewal)
$47
$175
$56
Filling Stations - Car Wash (New License)
$76
$361
$91
Filling Stations - Car Wash (Renewal)
$33
$252
$40
Firework Stand
Permit
$10
$0
$10
deposit
$200
$0
$200
Foundry (New License)
$217
$340
$260
Foundry (Renewal)
$161
$223
$193
Fortune Telling (New License)'
$500
$0
$600
Fortune Telling (Renewal)
$250
$0
$300
6
Attachment A
Name
Funeral Escort Business (New License)
Funeral Escort Business (Renewal)
Funeral Escort Employee (New License)
Funeral Escort Employee (Renewal)
Game Arcade: 4 or more (New License)
Game Arcade: 4 or more (Renewal)
Gasoline and Oil Truck (New License)
Gasoline and Oil Truck (Renewal)
Gun Dealer (New License)"
Gun Dealer (Renewal)
Health Club-Spa (New License)(New fee)'
Health Club-Spa (Renewal)(New fee)
Hotel
5-10 units (New License)
5-10 units (Renewal)
11-15 units (New License)
11-15 units (Renewal)
16 or more (New License)
16 or more (Renewal)
Identification cards (New License)
Identification cards (Renewal)
Launderette (New License)
Launderette (Renewal)
Locksmith (New License)
Locksmith (Renewal)
Lumberyard (New License)
Lumberyard (Renewal)
Current Current
Rosemead L.A. Coun
$85
$17
$38
$13
$25
$17
$13
$13
$326
$121
$53
$34
$121
$62
$1,777
$251
$307
$200
$739
$279
$0
$0
$81
$37
$81
$37
$81
$37
$107
$60
$59
$27
$61
$34
$338
$260
$1,750
$251
$317
$200
$317
$129
$378
$246
$168
$60
$265
$185
$201
$131
$447
$246
Proposed
Rosemead
$102
$46
$30
$16
$391
$145
$64
$41
$145
$74
$1,750
$251
$97
$44
$97
$44
$97
$44
$128
$72
$71
$32
$73
$41
$406
$312
7
Attachment A
Name
Massage Parlor (New License)"
Massage Parlor (Renewal)
Massage Technician (New License)'
Massage Technician (Renewal)
Model Studio (New License)
Model Studio (Renewal)
Motel (New License)
Motel (Renewal)
Motor Vehicle:
Rental/Sales (New License)
Rental (Renewal)
Painting (New License)
Painting (Renewal)
Licensed Repair/Body and Fender (New License)
Licensed Repair (Renewal)
Nursery (New License)
Nursery (Renewal)
Outdoor Festival
Religious Worship
All Others
Additional day
Pawn Broker (New License)'
Pawn Broker (Broker)
Peddler: (Includes Catering and Ice Cream Trucks)
Commercial Motor Vehicle (New License)'
Commercial Motor Vehicle (Renewal)
Current Current
Rosemead L.A. Count
$300
$2,254
$100
$213
$300
$252
$100
$208
$388
$158
$81
$37
$71
$38
$119
$63
$112
$57
$27
$11
$1,752
$1,593
$340
$223
$201
$131
$475
$275
$475
$275
$194
$131
$10
$0
$443
$1,866
$133
$278
$95 $377
$66 $157
$17 $168
$11 $131
Proposed
Rosemead
$2,254
$213
$300
$208
$466
$190
$97
$44
$85
$45
$142
$75
$134
$68
$32
$13
$12
$532
$160
$114
$79
$168
$131
8
Attachment A
Name
Special Event (New License)
Special Event (Renewal)
Picture Arcade (New License)
Picture Arcade (Renewal)
Pony Ride (New License)
Pony Ride (Renewal)
Poultry dealer (New License)
Poultry dealer (Renewal)
Private Patrol: (e.g. Security Guards)
Business (New License)
Business (Renewal)
Special Officer (New License)
Special Officer (Renewal)
Professional Occupation (New License)
Professional Occupation (Renewal)
Public Eating/Food Establishment (New License)
Public Eating/Food Establishment (Renewal)
Retail - General (New License)(New fee)
Retail - General (Renewal)(New fee)
Rides - Mechanical (New License)
Rides - Mechanical (Renewal)
Salvage collector for vehicle:
Regular (New License)
Regular (Renewal)
Non-Profit (New License)
Non-Profit (Renewal)
Current Current
Rosemead L.A. Counp
$26
$168
$16
$131
$347
$1,775
$123
$129
$31
$11
$31
$11
$127
$38
$48
$13
$0
$0
$135
$97
$0
$0
$127
$54
$194
$131
$194
$131
$0
$0
$0
$0
$0
$0
$431
$223
$0
$0
$318
$200
$31
$202
$17
$158
$2
$2
$2
$2
Proposed
Rosemead
$31
$19
$416
$148
$37
$13
$37
$13
$152
$46
$58
$16
$100
$50
$162
$116
$100
$50
$152
$65
$37
$20
$2
$2
9
Attachment A
Current
Current
Proposed
Name
Rosemead
L.A. County
Rosemead
Salvage dealer:
Regular (New License)
$144
$458
$173
Regular (Renewal)
$71
$250
$85
Non-Profit (New License)
$2
$2
$2
Non-Profit (Renewal)
$2
$2
$2
School - Private (New License)
$233
$1,846
$280
School - Private (Renewal)
$83
$246
$100
Solicitor (New License)*
$31
$175
$175
Solicitor (Renewal)
$17
$131
$131
Taxicab
Driver (New License)*
$33
$175
$175
Driver (Renewal)
$17
$131
$131
Owner (New License)
$194
$1,526
$233
Owner (Renewal)
$48
$155
$58
Cab - vehicle (New License)
$110
$168
$132
Cab - vehicle (Renewal)
$110
$131
$131
Additional cab (New License)
$48
$168
$57
Additional cab (Renewal)
$48
$131
$57
Theatre (New License)
$398
$1,829
$478
Theatre (Renewal)
$188
$246
$226
Tow Truck (New License)
$76
$168
$91
Tow Truck (Renewal)
$51
$131
$61
Traveling Show or Circus
First day
$542
$1,831
$650
Additional day
$313
$313
$313
Valet Parking Service (New License)
$111
$175
$133
Valet Parking Service (Renewal)
$86
$131
$103
10
Attachment A
Name
Waste Collector-Vehicle (New License)
Waste Collector-Vehicle (Renewal)
Waste Disposal Facility (New License)
Waste Disposal Facility (Renewal)
Current Current Proposed
Rosemead L.A. County Rosemead
$59
$0
$71
$51
$0
$61
$593
$0
$712
$493
$0
$592
`Requires Sheriff background check and/or inspection
SECTION 4. Other fees:
A. Film Permit Fees
Permit Fees
$100 per day
Community Services Officer
$50 per hour
Parking Control Officers
$50 per hour
Code Enforcement Officer
Fully burdened hourly rate
LASD
Fully burdened hourly rate
B. Special Event Permit Fees
Daily Permit Fee
$200 per day
Community Services Officer
$50 per hour
Parking Control Officers
$50 per hour
Code Enforcement Officer
Fully burdened hourly rate
LASD
Fully burdened hourly rate
11