HomeMy WebLinkAboutAGENDA REPORT 2013 0116 CCSA REG ITEM 09C ITEM 9.C.
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MOORPARK CITY COUNCIL �-
AGENDA REPORT
TO: Honorable City Council
FROM: David A. Bobardt, Community Development Director
DATE: December 28, 2012 (CC Meeting of 1/16/2013)
SUBJECT: Consider Ordinance Replacing in its Entirety Section 5.08.020
Exempt Organizations, Activities, Persons of Chapter 5.08 Business
Registration Permit, of Title 5 Business Taxes, Licenses and
Regulations, of the Moorpark Municipal Code and Consider
Resolution Adopting a Revised Fee Schedule for Services Rendered
Pursuant to the Moorpark Municipal Code Relating to Business
Registration Fees and Rescinding Resolution No. 2011-2994
BACKGROUND/DISCUSSION
On December 19, 2012, the City Council directed staff to draft amendments to the
section of the code related to Business Registration Permits to address a number of
concerns related to when such permits are required. The staff report with
recommendations are attached. An ordinance is provided in legislative format for
Council consideration to make the changes and clarifications as recommended. This
ordinance has been reviewed and approved by the City Attorney. A new fee resolution
is also provided with a reduced annual fee for Business Registration Permits for
individual vendors at farmers' markets and swap meets. Because this fee is not a new
or increased fee and it is not a development project fee, it is not subject to notification or
60-day delay requirements per Sections 66016 and 66017 of the Government Code.
FISCAL IMPACT
Business Registration Permit fees are intended to recover costs associated with their
processing. No fiscal impact is anticipated with adoption of the proposed Ordinance and
Resolution
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Honorable City Council
January 16, 2013
Page 2
STAFF RECOMMENDATION (ROLL CALL VOTE)
1. Introduce Ordinance No. , replacing in its entirety Section 5.08.020 of the
Moorpark Municipal Code, for first reading, waive full reading, and schedule
second reading and adoption for February 6, 2013.
2. Adopt Resolution No. 2013-
Attachments:
1. December 19, 2012 Staff Report
2. Draft Ordinance No.
3. Draft Resolution No. 2013-
SACommunity Development\ADIM Agenda Reports,Misc\Business Registration\BR for swap meet vendors,etc\20130116 CC Staff Report.docx
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MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: David A. Bobardt, Community Development Director
Joseph Fiss, Principal Planner
DATE: November 27, 2012 (CC Meeting of 1211912012)
SUBJECT: Consider Providing Staff with Direction on Business Registration
Permit Requirements and Consider Resolution Directing the
Planning Commission to Study, Hold a Public Hearing, and Provide a
Recommendation to the City Council on an Amendment to Section
17.28.020(B) (Home Occupations and Garage Sales) of the Zoning
Ordinance
BACKGROUND
The City has received an Administrative Permit application from Susan and Neil Adams
to operate a permanent weekly swap meet/flea market with up to 200 vendors in the
upper parking lot of Moorpark Community College. Its proposed hours are Saturdays to
be open to the public from 8:00 AM to 5:00 PM, with set-up beginning at 6:00 AM. As
part of this request, the Moorpark College Foundation has requested that individual
vendors not be required to have a Business Registration Permit, instead that a single
Business Registration Permit for the entire operation be acceptable for this use (request
letter attached). Staff is seeking direction from the City Council regarding the issuance
of Business Registration Permits for vendors at swap meets, as well as direction on
other issues related to the City's Business Registration provisions in the Moorpark
Municipal Code.
DISCUSSION
Section 5.08.010 of the Moorpark Municipal Code (Chapter 5.08 attached) requires a
Business Registration Permit for any person engaged in any business within the City. A
separate business registration permit is required for each branch establishment or
location of a business in the City and, all mobile businesses must obtain a valid
business registration permit. Mobile businesses are given a Business Registration
sticker for their vehicles to let code compliance staff quickly know that the business has
a Business Registration Permit.
CC ATTACHMENT 1
35
Honorable City Council
December 19, 2012
Page 2
The primary purpose of Business Registration Permit in Moorpark is to identify and
maintain records of those doing business within the City limits. This provides valuable
contact information, ensures businesses are allowed under Zoning and other City
regulations, and identifies businesses subject to special inspections, such as
restaurants and auto repair uses. As of the writing of this report, the City has 5,834
current Business Registration Permits. The Business Registration Fee, $90.00 for the
first year, and $35.00 for each year after that (going up by $1.00 each beginning
January 1 to cover a new State surcharge for disability access compliance), covers the
City costs in processing and maintaining the Business Registration records. Moorpark
does not require a business license. A business license is a tax, typically based on
gross sales receipts.
There have been a number of areas in implementing the Municipal Code that have been
subject to staff interpretation where the code could be clarified. Staff is seeking Council
direction on an Ordinance to amend the Business Registration Permit requirements to
address the following areas:
Swap Meets and Farmers' Markets — Staff has not required Business Registration
Permits from individual vendors for special events that have a Temporary Use Permit,
such a Country Days. However, when the use exists on a long term, regular basis,
such as the proposed swap meet, where most vendors are expected to return every
week, staff believes that a Business Registration Permit would be required of each
vendor. One option would be to exempt those who do not need a Board of Equalization
Seller's Permit, including "occasional sellers," those who only sell used personal items
once or twice a year, and those selling nontaxable items consisting of fresh produce or
cold food products to go (e.g. eggs, meat, or cheese) at a farmers' market. It should be
noted that Moorpark's Farmers' Market now has an Administrative Permit. Staff has
been holding off on enforcing the requirement for Business Registration Permits on the
individual vendors pending Council direction. Recommendation — Exempt individual
vendors at one- or two-day special events for which a Temporary Use Permit has
been issued, individual vendors at permitted swap meets or farmers' markets that
do not need a Board of Equalization Seller's Permit, and sellers of nontaxable
food items at farmers' markets. Create a special swap meet and farmers' market
Business Registration Permit at $45 per year that restricts its use to a specific
permitted swap meet or farmers' market. Require a regular Business Registration
Permit for those that wish to sell in multiple venues in the City.
Deliveries, Set-Ups. and Assemblies — Delivering items to a home or business has not
been considered doing business subject to a Business Registration Permit. However,
when a delivery involves additional work, such as assembly, installation, or construction,
a Business Registration Permit has been required. The code could be amended to
provide clarity on this matter. Recommendation — Exempt out-of-City businesses
that are only making deliveries, assemblies, and installations associated with the
purchase of an item, as long as a building permit is not required.
11DC711)epartment SharelCommunily DevelopnenhADMIMNgenda Reports.MisdBusiness RegistrationISR for scrap meet vendors,etGBR for swap meet vendors,eta.docx
36
Honorable City Council
December 19, 2012
Page 3
Design and Construction — Professional design work and analysis, including
architecture and engineering, has not required a Business Registration Permit unless
the professional office is physically in Moorpark. With respect to construction, each
contractor and subcontractor is required to obtain a Business Registration Permit. The
code could be amended to provide clarity on this matter as to whether design and
engineering work conducted for property in Moorpark requires a Business Registration
Permit. Recommendation — Exempt design and engineering businesses that do
not do site work(i.e. testing, overseeing construction) in Moorpark.
Property Rentals — Landlords were required to obtain a Business Registration Permit
when the City's Rental Inspection Ordinance was in effect. Since this ordinance has
been deleted from the Municipal Code, staff has not required Business Registration
Permits from landlords. One option would be to require a Business Registration Permit
when the number of rental units exceeds a certain threshold. Exempt residential
landlords that rent four or fewer units on any one site and ten or fewer units
citywide.
Real Estate Agents — Real Estate Agents representing property sellers are often
independent agents that work out of a real estate office. If that office has a Business
Registration with the City, staff has not required a Business Registration from the
independent agent. Staff has not required Business Registration Permits from agents
representing buyers of property in Moorpark. Business Registration Permits are
generally checked at the time an agent comes in to purchase open house directional
sign permits. Recommendation —Codify existing practice as described above.
Vendor Permits — Out of City companies that have had door-to-door sales staff work in
Moorpark have required a Business Registration for the company and a vendor permit
for the sales staff, whether or not they were actually employed by the company they
represent, or independent contractors. Local residents who work out or their home and
sell door-to-door have also been required to obtain a Home Occupation Permit.
Recommendation —Codify existing practice as described above.
Home Occupation Permits — Currently, Chapter 17.28 of the Zoning Ordinance sets a
five-year time period for Home Occupation Permits. These are issued in conjunction
with Business Registration Permits which have an annual renewal. It has been difficult
for staff to track the expiration of the Home Occupation Permits and include reminders
at the appropriate time with the Business Registration renewal notice. Since Home
Occupation Permits are subject to revocation at any time if the terms of the permit are
violated, staff recommends that the zoning provisions on Home Occupation Permits be
revisited for the Planning Commission and City Council to consider provisions that the
Home Occupation Permits do not expire for the original permittee as long as they are in
compliance with the Municipal Code. In accordance with Section 17.44.050 of the
Municipal Code, a resolution of City Council is needed to initiate a Zoning Ordinance
Amendment. Recommendation — Adopt attached resolution initiating Zoning
Ordinance Amendment to make Home Occupation Permits valid for original
MC11Department SharelCommundy DevelopmeneADMIMAgenda Reports,MisclBusiness RegistrationtBR for swap meet vendors,etdBR for swap meet vendors,VC..dom
37
Honorable City Council
December 19, 2012
Page 4
permittee at the originally approved address without expiration as long as they
are in compliance with Municipal Code.
FISCAL IMPACT
None.
STAFF RECOMMENDATION
1. Direct staff to draft amendments to Chapter 5.08 of the Moorpark Municipal Code
as Recommended for City Council consideration.
2. Adopt Resolution No. 2012- -
Attachments:
1. Request Letter from Moorpark College Foundation
2. Chapter 5.08 of the Moorpark Municipal Code (Business Registration Permit)
3. Draft Resolution No. 2012-
NDC110epartmenl SharelCommunity OevelopmenOAOMINkAgenda Reports,Miscl8usiness Registratlon%SR for swap meet vendors,etc1BR for swap meet vendors,etc-dour
38
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, REPLACING IN ITS ENTIRETY
SECTION 5.08.020, EXEMPT ORGANIZATIONS, ACTIVITIES,
PERSONS; OF CHAPTER 5.08, BUSINESS REGISTRATION
PERMIT; OF TITLE 5, BUSINESS TAXES, LICENSES AND
REGULATIONS; OF THE MOORPARK MUNICIPAL CODE
WHEREAS, at its meeting of January 16, 2013, the City Council considered
proposed amendments to Section 5.08.020 Exempt Organizations, Activities, Persons
of Chapter 5.08 Business Registration Permit, of Title 5 Business Taxes, Licenses and
Regulations, of the Moorpark Municipal Code and reached a decision;
WHEREAS, the City Council concurs with the Community Development
Director's determination that this project is exempt from the provisions of the California
Environmental Quality Act by the general rule that CEQA only applies to projects that
may have a significant effect on the environment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Section 5.08.020 Exempt Organizations, Activities, Persons of
Chapter 5.08 Business Registration Permit, of Title 5 Business Taxes, Licenses and
Regulations, of the Moorpark Municipal Code is replaced in its entirety, as shown in
Exhibit A.
SECTION 2. If any section, subsection, sentence, clause, phrase, part or
portion of this Ordinance is for any reason held to be invalid or unconstitutional by any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council declares that it would have
adopted this Ordinance and each section, subsection, sentence, clause, phrase, part or
portion thereof, irrespective of the fact that any one or more section, subsections,
sentences, clauses, phrases, parts or portions be declared invalid or unconstitutional.
SECTION 3. This Ordinance shall become effective thirty (30) days after its
passage and adoption.
SECTION 4. The City Clerk shall certify to the passage and adoption of this
ordinance; shall enter the same in the book of original ordinances of said City; shall
make a minute of the passage and adoption thereof in the records of the proceedings of
the City Council at which the same is passed and adopted; and shall, within fifteen (15)
days after the passage and adoption thereof, cause the same to be published once in
the Ventura County Star a newspaper of general circulation, as defined in Section 6008
of the Government Code, for the City of Moorpark, and which is hereby designated for
that purpose.
CC ATTACHMENT 2 39
Ordinance No.
Page 2
PASSED AND ADOPTED this 6th day of February, 2013.
Janice S. Parvin, Mayor
Maureen Benson, City Clerk
ATTACHMENTS:
Exhibit A: Proposed Amended Section 5.08.020
40
Ordinance No.
Page 3
EXHIBIT A
5.08.020 Exempt organizations, activities, persons.
A. Nothing in this chapter shall be deemed or construed to apply to any
person, business or activity exempt by virtue of the Constitution, statutes or laws of the
United States or the State from the requirement to obtain a permit or pay for a permit or
an application, renewal, amendment or duplicate permit fee.
B. In addition, the following organizations, activities and persons are exempt
from certain provisions of this chapter, as follows:
1. Nonprofit organizations. An institution or organization that is exempt from the
payment of federal income taxes under Subchapter F, commencing with Section 501, of
Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended from time to
time, or that is exempt from the payment of State income taxes under Cal. Revenue and
Taxation Code, Chapter 4, commencing with Section 23701, of Part 11 of Division 2, as
amended from time to time. Exemption shall apply upon presentation of proof of
nonprofit status.
2. Benefit, charitable and nonprofit activities. Any entertainment, dance, concert,
exhibition or lecture from which the gross receipts are to be donated to a nonprofit
institution or organization described in subsection (1) of this section, to the State, the
county, the city or to any school or house of worship, is exempt from the requirements
imposed by this chapter to obtain a permit and pay permit taxes, provided that profit,
other than wages paid to employees of such institutions or organizations, is not derived
from such activity, either directly or indirectly, by any person. The exemption set out in
this subsection shall not apply to persons employed to promote benefit, charitable and
nonprofit activities.
3. Independent city contractors. Certain independent contractors hired by the
city. Any person hired by the city as an independent contractor to provide babysitting
services; to perform artistic demonstrations or give other performances; to provide
classes in art, dance, crafts, cooking, sports, music, fitness, or dog obedience; to give
lectures, readings, gallery talks or workshops; or to officiate sporting events at city-
owned locations, programs or performances at the High Street Art Center are exempt
from the requirements imposed by this chapter to pay permit fees if those persons work
in the city is exclusively for the city.
4. Individual vendors at a one-day or two-day special event within the city for
which a temporary use permit has been issued.
5. Individual vendors at a city-permitted swap meet or farmers' market exempt
from the requirement by the state board of equalization requirement for a seller's permit
as "occasional sellers."
6. Sellers of only nontaxable food items at a city-permitted farmers' market.
7. Businesses physically located outside the city making a delivery within the city
of goods purchased, including set-up and assembly, provided such set-up and
assembly does not require a building permit pursuant to Title 15 of this code.
8. Businesses involved in professional design work and analysis, including
architecture and engineering, provided such work does not involve on-site work within
the city.
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Ordinance No.
Page 4
9. Landlords renting four (4) or fewer residential units on any one site in the city,
and ten (10) or fewer residential units citywide.
10. Real estate agents working as independent contractors from a real estate
office that has a valid business registration with the city.
11. Door-to-door sales agents with a valid city street vendor permit working as
independent contractors from a business that has a valid business registration with the
City.
C. No person other than the permittee shall use any permit issued pursuant to
this subsection.
D. No person shall purchase or transfer any permit issued pursuant to this
subsection.
E. Businesses with a valid business registration permit for a store or service in
the city do not need a separate business registration permit to operate as an individual
vendor at city-permitted special events, swap meets, or farmers' markets.
- END -
42
RESOLUTION NO. 2013-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, ADOPTING A REVISED FEE
SCHEDULE FOR SERVICES RENDERED PURSUANT TO
THE MOORPARK MUNICIPAL CODE RELATING TO
BUSINESS REGISTRATION FEES AND RESCINDING
RESOLUTION NO. 2011-2994
WHEREAS, Chapter 5.08 of the Moorpark Municipal Code requires annual
business registration permits for any person engaged in any business within the city;
and
WHEREAS, Resolution No. 2011-2994 has provided for the recovery of costs
associated with administering the business registration permit program; and
WHEREAS, a review of the costs associated with the processing of business
registrations and annual renewals for individual vendors at swap meets or farmers'
markets calls for a reduced fee to reflect current actual costs of providing such services.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The fee for a new business registration permit is $90.00.
SECTION 2. The fee for a business registration permit annual renewal is
$35.00.
SECTION 3. The fee for a business registration permit and business
registration permit annual renewal limited to use by an individual vendor at a single City-
permitted swap meet or farmers' market venue is $45.00.
SECTION 4. The above fees do not include the $1.00 annual State-mandated
surcharge for Certified Access Specialist services pursuant to Government Code
Section 4467.
SECTION 5. This Resolution shall become effective immediately.
SECTION 6. Resolution No. 2011-2994 is hereby rescinded upon the effective
date of this Resolution.
SECTION 7. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be file in the book of original resolutions.
CC ATTACHMENT 3
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Resolution No. 2013-
Page 2
PASSED AND ADOPTED this 16th day of January, 2013.
Janice S. Parvin, Mayor
ATTEST:
Maureen Benson, City Clerk
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