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