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HomeMy Public PortalAbout05_7C_2nd Reading and Adoption of Ordinance 20-1051 Business By VehicleCOMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM DATE: December 1, 2020 TO: The Honorable City Council FROM: Bryan Cook, City Manager By: Scott Reimers, Community Development Director SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE 20-1051 AMENDING SECTION 5-2A-0 OF THE TEMPLE CITY MUNICIPAL CODE PERTAINING TO “BUSINESS BY VEHICLE” RECOMMENDATION: The City Council is requested to waive further reading and adopt Ordinance No. 20-1051 (Attachment “A”) amending section 5-2A-0 of the Temple City Municipal Code pertaining to “business by vehicle.” BACKGROUND: 1.On March 4, 2020, Governor Newsom declared a State of Emergency in response to the COVID-19 pandemic. 2.On March 13, 2020, the President of the United States declared a national state of emergency due to the COVID-19 outbreak. On this same day, the City Council adopted Resolution No. 20-5457, declaring a local state of emergency. 3.On July 8, 2020, the City Council adopted the COVID-19 Economic Recovery Plan. The plan includes a goal of returning with a business license deferral program and an amnesty program. 4.On November 17, 2020, the City Council introduced Ordinance No. 20-1051 and set the second reading and adoption for the December 1, 2020 City Council Meeting. AGENDA ITEM 7.C. City Council December 1, 2020 Page 2 of 2 ANALYSIS: The City Council reviewed this item on November 17, 2020 and introduced the proposed ordinance. There were no comments by the public and no subsequent changes to the ordinance were made. Therefore, the City Council is requested to adopt Ordinance No. 20-1051. The original staff report from November 17, 2020 is attached to this report. CITY STRATEGIC GOALS: Adopting the proposed ordinance further the City’s Strategic Goals of Good Governance and Economic Development. FISCAL IMPACT : The change to the business permit requirement would likely result in a total reduction of $500 in business permit fees. ATTACHMENTS: A.Ordinance No. 20-1051 B.November 17, 2020 City Council Meeting Staff Report LA #4830-4199-8288 v1 1 ORDINANCE NO. 20-1051 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY AMENDING SECTION 5-2A-0 OF THE TEMPLE CITY MUNICIPAL CODE PERTAINING TO THE REFERENCE TO “BUSINESS BY VEHICLE” WHEREAS, Section 5-2A-0 of the Temple City Municipal Code (TCMC) currently requires a “business by vehicle” to obtain a business permit; WHEREAS, the City does not have an established definition for the reference to “business by vehicle”; and WHEREAS, the City Council desires to clarify the reference to “business by vehicle”, to exclude certain business activities such as gardening and house cleaning services, private parcel delivery companies, taxi, car-sharing, and transportation network companies, and food and water delivery businesses. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMPLE CITY DOES ORDAIN AS FOLLOWS: SECTION 1. Environmental Review. The City Council exercises its independent judgment and finds that the proposed ordinance is not subject to California Environmental Quality Act (CEQA), pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), and section 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because the subject regulations have no potential for resulting in any significant physical change to the environment, either directly or indirectly. SECTION 2. Amendment to Section 5-2A-0 of the TCMC. The reference to “Business by vehicle”, as set forth in Section 5-2A-0 of the TCMC, is amended to read as follows: “Business by vehicle, other than the following: gardening and house cleaning services; private parcel delivery companies (including UPS and FedEx); taxi, car-sharing, and transportation network companies (including Uber and Lyft); and food and water delivery businesses (including Sysco, GrubHub, and Sparkletts).” SECTION 3. Severability. If any provision of this Ordinance is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, that invalidity shall not affect the remaining provisions of this chapter which can be implemented without the invalid provisions, and to this end, the provisions of this chapter are declared to be severable. The City Council hereby declares that it would have adopted this ordinance and each provision thereof irrespective of whether any one or more provisions are found invalid, unconstitutional or otherwise unenforceable. ATTACHMENT A LA #4830-4199-8288 v1 2 SECTION 4. Publication. The City Clerk shall certify the adoption of this ordinance and shall cause this ordinance to be published by title and summary in the manner required by law. Signed and approved this __th day of ___________, 2020. _____________________________ Thomas Chavez, Mayor I HEREBY CERTIFY that the foregoing ordinance was adopted by the City Council of the City of Temple City at its meeting held on the __th day of _____________, 2020 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Date Published: _____________________________ Peggy Kuo City Clerk COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM DATE: November 17, 2020 TO: The Honorable City Council FROM: Bryan Cook, City Manager By: Scott Reimers, Community Development Director SUBJECT: CONSIDERATION OF A RESOLUTION TEMPORARILY DEFERRING BUSINESS LICENSE FEES AND PENALTIES DUE TO THE IMPACTS OF COVID-19, AND AN ORDINANCE AMENDING SECTION 5-2A-0 OF THE TEMPLE CITY MUNICIPAL CODE PERTAINING TO “BUSINESS BY VEHICLE” RECOMMENDATION: The City Council is requested to: 1.Adopt the attached Resolution (Attachment “A”), which permits the City to temporarily defer collection of business license fees and penalties due to the impacts of COVID- 19; and 2.Introduce for first reading by title only and waive further reading of Ordinance No. 20- 1051 (Attachment “B”) and schedule the second reading of Ordinance No. 20-1051 for December 1, 2020. BACKGROUND: 1.On March 4, 2020, Governor Newsom declared a State of Emergency in response to the COVID-19 pandemic. 2.On March 13, 2020, the President of the United States declared a national state of emergency due to the COVID-19 outbreak. On this same day, the City Council adopted Resolution No. 20-5457, declaring a local state of emergency. ATTACHMENT B City Council November 17, 2020 Page 2 of 3 3.On July 8, 2020, the City Council adopted the COVID-19 Economic Recovery Plan. The plan includes a goal of returning with a business license deferral program and an amnesty program. ANALYSIS: The COVID-19 pandemic has had negative ramifications on most of the City’s businesses. As a result, in preparing the City’s COVID-19 Economic Recovery Plan, the City Council sought to bring relief to the City’s businesses. One program called for in the Plan was to provide a business license deferral and amnesty program. Deferral Program Under the existing business license ordinance, the annual license fee is due on January 1 every year (Temple City Municipal Code (TCMC) §5-1B-12). Licenses paid after January 1 are assessed a late fee. This Resolution authorizes and permits the city manager or his designee to defer collection of any business license payment for three months so that the annual business license payment for January 1, 2021 would be due on March 1, and late fees would begin being assessed on April 1. Business license applications submitted on or after January 1, would also be allowed to defer payment until March 1. Amnesty Program Under the existing business license ordinance, the City collects a 10 percent penalty of the license fee on the 30th day of each month after the due date for businesses that fail to pay their annual business license fee when due (TCMC §5-1A-10). Under the proposed amnesty program, businesses previously licensed, but whose license has expired, would simply pay for the principal business license fees without penalty. The program would be available to any business despite how long it may have been operating without a license. Previously unlicensed businesses would be handled as a new business and would not be charged any penalty fees. The Resolution authorizes and permits the city manager or his designee to waive such late penalties fees that may be assessed between December 1, 2020 and February 28, 2021. Community Preservation staff, the business license technician, and the Franchise Tax Board will work together in December and January to locate unlicensed businesses and let them know about the program. Exempt Delivery Businesses from Business Permits Under the City’s existing business license rules, certain businesses require a “business permit” (TCMC Article 5-2A). To obtain a business permit, the business owner and all drivers must go through an initial and annual background check. The cost of the background check is set by the Los Angeles County Sherriff’s Department and is presently set at $87. One business classification that deserves a closer look given the impacts of the COVID- 19 pandemic is “business by vehicle.” The definition, adopted in 1960, is very broad and does not reflect how current household and business practices have expanded to include City Council November 17, 2020 Page 3 of 3 delivery. This is especially true during the COVID-19 pandemic where consumers and businesses alike have relied on delivery services to continue business operations. The proposed ordinance would modify the reference to “business by vehicle” to state that the following businesses are not a business by vehicle and therefore do not require a business permit and a background check: •Gardening and house cleaning services; •Private parcel delivery companies (such as UPS and FedEx); •Taxi, car-sharing, and transportation network companies (such as Uber and Lyft); and •Food and water delivery businesses (including Sysco, GrubHub, Sparkletts, and such). Though the above businesses would not require a business permit, they would still be required to obtain a business license. CITY STRATEGIC GOALS: Adopting the proposed ordinance further the City’s Strategic Goals of Good Governance and Economic Development. FISCAL IMPACT : The proposed deferral program would not have an impact on the City business license revenue as the revenues would still be collected in the same fiscal year. The change to the business permit requirements would likely result in a total reduction of $500 in business permit fees. ATTACHMENTS: A.Resolution No. 20-5504 B.Ordinance No. 20-1051 RESOLUTION 20-5504 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, TEMPORARILY DEFERRING BUSINESS LICENSE FEES AND PENALTIES DUE TO THE IMPACTS OF COVID-19 WHEREAS, a local emergency arising out of COVID-19 continues to exist and it is in the interest of protecting the public health and preventing transmission of COVID-19 to encourage residents to stay at home and avoid unnecessary social interactions; WHEREAS, the economic conditions brought upon by this local emergency threatens city businesses and essential services, and without temporary relief, the City will suffer blight and the loss of important businesses; WHEREAS, on July 8, 2020, the City Council adopted the COVID-19 Economic Recovery Plan, and directed City staff to return with a business license deferral program and an amnesty program to provide temporary economic relief to impacted businesses; and WHEREAS, Temple City Municipal Code (TCMC) Sections 5-1A-10 and 5-1B-12 address business license fees and penalties for failure to pay for such business license fees; WHEREAS, the City Council finds that it is in the best interests of the City to implement a temporary business license deferral program and amnesty program to address such economic impacts. NOW, THEREFORE, the City Council of the City of Temple City does hereby resolve, declare, determine, and order as follows: SECTION 1. Temporary Business License Fee Deferral Program. The city manager or his designee is authorized to defer the collection of annual business license fees, due January 1, 2021 pursuant to the provisions of TCMC Section 5-1B-12, until March 1, 2021. Any applicable late penalties for such deferred payment may be deferred and assessed on or after April 1, 2021. SECTION 2. Temporary Business License Fee Late Penalty Amnesty Program. The city manager or his designee is authorized to waive such late penalties, under TCMC Section 5-1A-10, for failure to pay business license fees, if such late penalties are incurred between December 1, 2020 and February 28, 2021. SECTION 3. Effective Date. This resolution takes effect immediately upon adoption. Resolution No. 20-5504 Page 2 of 2 PASSED, APPROVED AND ADOPTED ON __ DAY OF ____________________, 2020. CITY OF TEMPLE CITY: Thomas Chavez, Mayor ATTEST: APPROVED AS TO FORM: Peggy Kuo, City Clerk Gregory M. Murphy, City Attorney I, PEGGY KUO, CITY CLERK of the City of Temple City do hereby certify that the foregoing Resolution was adopted at a Regular Meeting of the City Council of the City of Temple City held on the __ day of ________________2020. AYES: Councilmember – NOES: Councilmember - ABSENT: Councilmember - ABSTAIN: Councilmember - IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Temple City, California, this __ day of ________________2020. Peggy Kuo, City Clerk ORDINANCE NO. 20-1051 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY AMENDING SECTION 5-2A-0 OF THE TEMPLE CITY MUNICIPAL CODE PERTAINING TO THE REFERENCE TO “BUSINESS BY VEHICLE” WHEREAS, Section 5-2A-0 of the Temple City Municipal Code (TCMC) currently requires a “business by vehicle” to obtain a business permit; WHEREAS, the City does not have an established definition for the reference to “business by vehicle”; and WHEREAS, the City Council desires to clarify the reference to “business by vehicle”, to exclude certain business activities such as gardening and house cleaning services, private parcel delivery companies, taxi, car-sharing, and transportation network companies, and food and water delivery businesses. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMPLE CITY DOES ORDAIN AS FOLLOWS: SECTION 1. Environmental Review. The City Council exercises its independent judgment and finds that the proposed ordinance is not subject to California Environmental Quality Act (CEQA), pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), and section 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because the subject regulations have no potential for resulting in any significant physical change to the environment, either directly or indirectly. SECTION 2. Amendment to Section 5-2A-0 of the TCMC. The reference to “Business by vehicle”, as set forth in Section 5-2A-0 of the TCMC, is amended to read as follows: “Business by vehicle, other than the following: gardening and house cleaning services; private parcel delivery companies (including UPS and FedEx); taxi, car-sharing, and transportation network companies (including Uber and Lyft); and food and water delivery businesses (including Sysco, GrubHub, and Sparkletts).” SECTION 3. Severability. If any provision of this Ordinance is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, that invalidity shall not affect the remaining provisions of this chapter which can be implemented without the invalid provisions, and to this end, the provisions of this chapter are declared to be severable. The City Council hereby declares that it would have adopted this ordinance and each provision thereof irrespective of whether any one or more provisions are found invalid, unconstitutional or otherwise unenforceable. Ordinance No. 20-1051 Page 2 of 2 SECTION 4. Publication. The City Clerk shall certify the adoption of this ordinance and shall cause this ordinance to be published by title and summary in the manner required by law. Signed and approved this __th day of ___________, 2020. _____________________________ Thomas Chavez, Mayor I HEREBY CERTIFY that the foregoing ordinance was adopted by the City Council of the City of Temple City at its meeting held on the __th day of _____________, 2020 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Date Published: _____________________________ Peggy Kuo, City Clerk