HomeMy WebLinkAboutAGENDA REPORT 2008 1203 CC REG ITEM 09E OF:MOORPARK,
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MOORPARK CITY COUNCIL
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AGENDA REPORT
TO: Honorable City Council
FROM: Barry K. Hogan, Deputy City Manager
By: David Lasher, Senior Management An lyst [�
DATE: November 20, 2008 (CC Meeting of 12/03/2008)
SUBJECT: Consider Resolution Revising Fees Required by Chapter 5.64 of the
Municipal Code and Establishing Fee Schedule for Special Business
Registration Permit Fees for Bingo Games, Street Vendors, Adult
Businesses, Massage Therapy, Pawnshops and Secondhand
Businesses and Rescinding Resolution No. 93-948
BACKGROUND
On June 18, 2008, the City Council revised Chapter 5.08 of the Moorpark Municipal
Code, amending the City's business registration certificate process and related fees for
the first time in nearly two decades. This amended chapter and code addresses
changes in how business registrations are handled currently and increased the base fee
required for the issuance of Moorpark's basic business registration certificate to match
current costs.
However, beyond the standard business registration certificate, certain categories of
business require additional permits and licensing as required by existing City, County
and State legislation. These additional permits must be obtained to protect the public
health, safety and welfare of the community prior to the issuance of a business
registration permit.
The costs for the additional research and procedures to support the specialized permits
required by these particular businesses, which include bingo games, street vendor,
adult business, massage therapy business and individual massage therapists,
pawnshops and secondhand businesses, are authorized by ordinance and cost
recovery is allowed to be established by Council resolution. This report describes how
the costs were derived with specific attention given to each category. The attached
resolution would authorize increasing the related fees, effective January 2, 2009.
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The City Attorney has reviewed the proposed fees and has advised that the requirement
to advertise and hold a public meeting prior to adopting or increasing development fees
(pursuant to Government Code 66016), is not applicable in this situation as these fees
only apply to the recovery of costs related to government regulatory action or approvals.
DISCUSSION
There are several specific categories of business required to obtain additional licensing
and which otherwise create additional financial demands on the City. The details of
each of these types of special business permits are described below:
Bingo Game Permits
Currently, the staff costs associated with processing a bingo game permit exceed a limit
set by state law. California Penal Code Chapter 326.5 (Attachment 3) caps the fee that
a city may charge for a bingo game permit to fifty dollars ($50.00) annually. While the
City may not charge more than fifty dollars per permit, the staff costs of processing a
bingo game permit are actually two hundred and fifty-one dollars and fifty-two cents
($251.52). An analysis of the processing costs is shown in Attachment 2.
Street Vendor Permit
Staff processes and reviews the separate street vendor application and applicable
county health permits for street vendors such as ice cream vendors. Following a
successful review of all related paperwork, staff creates a photo-identification card
which all vendors must possess and display during sales of their goods and wares. The
actual staff costs associated with processing a street vendor permit total sixty-five
dollars and twenty-seven cents ($65.27) per permit. An analysis of the processing costs
is shown in Attachment 2.
It should be noted that additional street vendors may apply to be licensed under an
existing street vendor permit. In this case, an application is processed and an
identification card is produced for the individual(s). While the process to add an
additional vendor under an existing license involves staff time, the impact of this
procedure is less than that of an original application and results in a lower cost of forty
dollars and sixty-four cents ($40.64) per additional permit. An analysis of the
processing costs is shown in Attachment 2.
Adult Business and Massage Therapy Establishment and Massage Therapist Permits
In accordance with the Municipal Code (and specifically MMC Chapter 5.18.040) and in
direct association with public health and safety, the Community Development
Department is obliged to investigate the individuals and businesses seeking to obtain
permits to operate adult businesses and massage therapy-related activities within
Moorpark.
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This type of significant and mandatory investigation results in the expenditure of
$459.78 in staff costs per permit. This figure includes three (3) hours of staff time and
two (2) hours of police department time required to properly review and process an
adult business permit application, a massage therapy business permit application
and/or an individual massage therapist permit. Currently, the City imposes a fee of
twenty-five dollars ($25.00) to process an individual massage therapist permit and a one
hundred and fifty dollar ($150.00) fee to process a massage establishment permit.
In conjunction with the internal costs of processing these special categories of business
permits, each individual applying for an adult business permit, a massage therapy
establishment permit and/or a massage therapist permit must separately apply for a law
enforcement background check. In California, background checks are conducted
through the "Live Scan" electronic fingerprint process with records reviewed by the
State of California, Department of Justice (DOJ). In addition to the DOJ check,
massage therapists must submit fingerprints to the Federal Bureau of Investigation
(FBI). The cost of fingerprinting is ten dollars ($10.00). The cost of the DOJ and FBI
background checks are currently thirty-two dollars ($32.00) and twenty-four dollars
($24.00), respectively. The cost of the Live Scan fingerprint process and criminal
background check (both DOJ and FBI) are solely the responsibility of the applicant and
are paid directly to the Ventura County Sheriff's Department or other certified Live Scan
provider and are not collected by or the responsibility of the City of Moorpark. The City
is not involved in setting the Live Scan fees and they are only referenced in this report
for information purposes. An analysis of the processing costs is shown in Attachment 2.
Pawnshop and Secondhand Dealer Permits
While not as detailed as an adult business permit or a massage therapy permit,
pawnbroker or secondhand dealer applications are also subject to law enforcement
review given industry-related concerns regarding stolen goods (as referenced in MMC
5.32.040). While fingerprinting is not required for a pawnshop or secondhand dealer
application, the additional scrutiny results in staff costs of three hundred and seventy-
three dollars and twenty-six cents ($373.26).
In addition to the business registration certificate fee and the $373.26 staff cost of the
pawnshop or secondhand dealer special permit application, a pawnshop and
secondhand shop must file a daily report detailing the items received during the
preceding business day. This report must be submitted to the Moorpark Police
Department where it is reviewed by a sergeant. The staff time associated with the thirty
(30) minutes of daily review of this report by the Moorpark Police Department costs
eighty-two dollars and fifty cents ($82.50). Based on this half-hour review and a six day
work week, the annual cost of the review of the daily report is twenty-five thousand,
seven hundred and forty dollars ($25,740.00). An analysis of the processing costs is
shown in Attachment 2.
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The estimated $25,740.00 annual cost of the daily review of pawn reports is substantial.
However, staff recognizes that a pawn shop might not necessarily receive or purchase
pawned items each day. Accordingly, staff is recommending that the daily review
expenses which are the responsibility of the business be addressed on an as needed
basis with an advanced deposit equivalent to the cost of two (2) months' review or four
thousand and two hundred and ninety dollars ($4,290.00). The actual time and
associated expense of the daily police review would be deducted from this deposit on a
monthly basis with the deposit replenished by the business owner on an as needed
basis each month, so that the equivalent of two months' deposit is always available.
Non-Profit Thrift Shops Exempt from Police Fees
Currently there are no pawnshops located within the City. There are two secondhand
thrift shops currently operating in Moorpark, both of which are managed as non-profit
organizations. These businesses, Luther's Attic Thrift Shop and One More Time Thrift
Shop, are both located on High Street. As non-profits, these businesses receive only
donated goods and therefore do not present the risk of receiving stolen property more
commonly associated with pawnshops. Staff therefore recommends that these two
businesses, as well as any similar businesses, should be exempt from daily police
reporting and the corresponding fees.
With City Council direction, non-profit thrift shops (such as the nationally-recognized
Goodwill store), consignment shops and internet auction stores that might desire in the
future to operate within the City should also be exempt from daily police reporting and
fees. Staff would manage these and similar uses on a case-by-case basis and bring
forward to City Council those uses which do not fall within these parameters.
Summary of All Costs Associated with the Processing of Special Permits
As described above, for each category of specialized permit staff has calculated the
additional costs and summarized these costs by category in Table 1 (below). A
complete breakdown of the related costs is attached to this report as Attachment 2.
Table 1. Annual Costs of Special Business Registration Permits
Permit Actual Proposed
COSt1'2 Fee
Bingo $251.52 $50.00
Street Vendor $65.27 $65.00
Additional Vendor on `Parent' Permit $40.64 $40.00
Adult Business $459.78 $459.00
Massage Business and Individual Therapist $459.78 $459.00
Pawn Shop/Secondhand Dealers4 1 $26,113.26 1 $26,113.00
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1 Does not include the separate business registration certificate fee.
2 Determined by the staff costs and other costs associated with processing the related permit.
3 A described in the report, this fee does not include any additional law enforcement background checks
and related fingerprinting costs.
a This figure includes$25,740.00 in annual report review costs and the $373.26 cost of processing an
application. Staff is recommending that a deposit equivalent to the two months of daily review costs, or
$4,290.00, be required by each pawnshop, thrift shop and secondhand store.
FISCAL IMPACT
The fiscal impact of increasing the permit processing fees discussed in this report would
positively offset the staff and other costs associated with these specific permits.
STAFF RECOMMENDATION (Roll Call Vote)
1. Adopt Resolution No. 2008- establishing the fees for related special permits
and rescinding Resolution No. 93-948, effective January 2, 2009.
2. Direct staff to review these fees annually and recommend adjustments to cover City
costs.
3. Direct staff to provide an exemption from daily police reporting and corresponding
fees to Luther's Attic Thrift Shop and One More Time Thrift Shop and review future
exemptions as recommended in the report.
ATTACHMENTS:
1. Resolution No. 2008-
2. Analysis of Costs Associated with Permit Processing
3. California Penal Code Section 326.5
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RESOLUTION NO. 2008-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, RESCINDING RESOLUTION 93-948 AND
ESTABLISHING REVISED FEES REQUIRED BY
CHAPTER 5.64 TO TITLE 5 OF THE MOORPARK
MUNICIPAL CODE AND ESTABLISHING A FEE
SCHEDULE FOR SERVICES RENDERED PURSUANT TO
THE MOORPARK MUNICIPAL CODE RELATING TO
SPECIAL BUSINESS REGISTRATION PERMIT FEES
WHEREAS, the City of Moorpark has identified a need to protect the health and
welfare of the public by becoming more familiar with business operations and
procedures in the community; and
WHEREAS, several categories of business require additional and specialized
permits with respect to the public's health and safety; and
WHEREAS, the fee schedule for these additional licensing costs must be
established to assure adequate recovery of all costs associated with the rendering of
such services.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
2009. SECTION 1. Resolution No. 93-948 is hereby rescinded effective January 2,
SECTION 2. The fee for obtaining a bingo game permit required by Chapter
5.24 of Title 5 of the Moorpark Municipal Code shall be FIFTY AND NO/100 DOLLARS
($50.00) per fiscal year per applicant for a bingo game permit.
SECTION 3. The fee for obtaining a street vendor permit required by Chapter
5.64 of Title 5 of the Moorpark Municipal Code shall be SIXTY-FIVE AND NO/100
DOLLARS ($65.00) per fiscal year per applicant for a street vendor permit.
SECTION 4. The fee for obtaining an additional street vendor permit to operate
under an existing street vendor permit required by Chapter 5.64 of Title 5 of the
Moorpark Municipal Code shall be FORTY AND NO/100 DOLLARS ($40.00) per fiscal
year per applicant for an additional street vendor permit.
SECTION 5. The fee for obtaining an adult business permit required by
Chapter 5.18 of Title 5 of the Moorpark Municipal Code shall be FOUR HUNDRED AND
CC ATTACHMENT 1 4 0004
Resolution No. 2008-
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FIFTY-NINE AND NO/100 DOLLARS ($459.00) per fiscal year per applicant for an adult
business permit.
SECTION 6. The fee for obtaining a massage establishment permit and/or a
massage therapist permit required by Chapter 5.48 of Title 5 of the Moorpark Municipal
Code shall be FOUR HUNDRED AND FIFTY-NINE AND NO/100 DOLLARS ($459.00)
per fiscal year per applicant for a massage establishment permit and/or a massage
therapist permit.
SECTION 7. The fee for obtaining a pawnbroker, thrift shop owner and/or
secondhand dealer permit required by Chapter 5.32 of Title 5 of the Moorpark Municipal
Code shall be THREE HUNDRED AND SEVENTY-THREE AND NO/100 DOLLARS
($373.00) per fiscal year per applicant for a pawnbroker, thrift shop owner and/or
secondhand dealer permit.
SECTION 8. Pawnshops, thrift shops and secondhand stores shall be required
to pay a deposit of FOUR THOUSAND, TWO HUNDRED AND NINETY AND NO/100
DOLLARS ($4,290.00) for expenses related to daily police review fees. This deposit
shall be replenished on a monthly basis to equal the equivalent of two months' of daily
police review fees.
SECTION 9. Thrift shops owned and operated by 501(c)(3) non-profit
organizations shall be exempt from providing daily police reports and exempt from
paying the corresponding police review fees.
SECTION 10. The fees corresponding to special business registration permit
charges shall be reviewed annually as part of the budget process to ensure that they
are current and are related to actual costs.
SECTION 11. This Resolution shall become effective on January 2, 2009
following the public meeting held on December 3, 2008.
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Resolution No. 2008-
Page 3
SECTION 12. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this 3rd day of December, 2008.
Janice S. Parvin, Mayor
ATTEST:
Maureen Benson, Assistant City Clerk
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Business Registration Permit Fees
Special Permits, Processing Cost Analysis
Bingo Game Permits
Time Associated With
Hourly Rate Processing Related
Position With Benefits Permit
Assistant Planner I $ 32.74 2 hours $ 65.48
Police Sergeant $ 165.00 1 hour $ 165.00
Overhead Costs (15% of Annual Costs) $ 10.52 2 hours $ 21.04
Total Costs Per Permit $ 251.52
Street Vendor Permits
Time Associated With
Hourly Rate Processing Related
Position With Benefits Permit
Code Compliance Technician II $ 42.88 1 hour $ 42.88
Senior Management Analyst $ 63.66 10 minutes $ 10.19
Overhead Costs 15% of Annual Costs) $ 10.52 1 hour, 10 minutes $ 12.20
Total Costs Per Permit $ 65.27
Street Vendor Permits (Additional Vendor on Parent Permit)
Time Associated With
Hourly Rate Processing Related
Position With Benefits Permit
Code Compliance Technician II $ 42.88 30 minutes $ 21.44
Senior Management Anal st $ 63.66 10minutes $ 10.19
Overhead Costs 15% of Annual Costs $ 10.52 40 minutes $ 7.01
Vehicle Sticker $ 2.00 $ 2.00
Total Costs Per Permit $ 40.64
Adult Business
Time Associated With
Hourly Rate Processing Related
Position With Benefits Permit
Assistant Planner 1 $ 32.74 3 hours $ 98.22
Police Sergeant $ 165.00 2 hours $ 330.00
Overhead Costs (15% of Annual Costs) $ 10.52 3 hours $ 31.56
Total Costs Per Permit $ 459.78
Massage Therapy Business and Massage Therapist Permit
Time Associated With
Hourly Rate Processing Related
Position With Benefits Permit
Assistant Planner I $ 32.74 3 hours $ 98.22
Police Sergeant $ 165.00 2 hours $ 330.00
Overhead Costs (15% of Annual Costs) $ 10.52 3 hours $ 31.56
Total Costs Per Permit 459.78
CC ATTACHMENT 2 o0w5.-j
Pawnshop and Secondhand Shop Permits
Time Associated With
Hourly Rate Processing Related
Position With Benefits Permit
Assistant Planner 1 $ 32.74 1 hour $ 32.74
Police Sergeant(review of application) $ 165.00 2 hours $ 330.00
Police Sergeant $ 165.00 30 minutes daily* $ 25,740.00
Overhead Costs (15% of Annual Costs) $ 10.52 1 hour $ 10.52
Total Costs Per Permit $ 26,113.26
*MMC 5.32.050 requires that a pawnbroker, thrift shop owner and secondhand dealer
provide a daily report to the Moorpark Police Department detailing all goods, wares and
merchandise purchased or received during the preceding day. Based on a six-day work
work and a thirty (30) minute daily review of this report by a sergeant in the Moorpark
Police Department, costs of$25,740.00 result. The hourly rate of a police officer of the
rank of'sergeant' is$165.00 as established by resolution in the police service fees schedule.
0005z
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California Penal Code (CPC)
326-5 (l)
CPC Section 326.5 (1)
(1) (1) A city, county, or city and county may impose a license fee on each
organization that it authorizes to conduct bingo games. The fee, whether for the
initial license or renewal, shall not exceed fifty dollars ($50) annually, except as
provided in paragraph (2). If an application for a license is denied, one-half of any
license fee paid shall be refunded to the organization.
(2) In lieu of the license fee permitted under paragraph (1), a city, county, or
city and county may impose a license fee of fifty dollars ($50) paid upon
application. If an application for a license is denied, one-half of the application
fee shall be refunded to the organization. An additional fee for law enforcement
and public safety costs incurred by the city, county, or city and county that are
directly related to bingo activities may be imposed and shall be collected monthly
by the city, county, or city and county issuing the license; however, the fee shall
not exceed the actual costs incurred in providing the service.
CC ATTACHMENT 3 ► JD �y