CHAPTER 19.
LICENSES, FEES AND CHARGES. Revised 9/14 Revised 12/14

Article 1. In General.

§ 19-1    Definitions.

§ 19-2    Chapter for revenue purposes only.

§ 19-3    Reserved for future use.

§ 19-4    Required -- generally.

§ 19-5    Same -- branch establishments, etc.

§ 19-6    Applications.

§ 19-7    Statements -- original applications.

§ 19-8    Same -- renewals.

§ 19-9    Same -- conclusiveness; information to be confidential.

§ 19-10    Same -- failure to file; corrected statements; hearing

§ 19-11    Exemptions -- charitable, nonprofit, religious, etc., activities

§ 19-12    Same -- disabled persons.

§ 19-13    Same -- minors.

§ 19-14    Same -- commercial fishermen.

§ 19-15    Same -- county fairgrounds.

§ 19-16    Repealed.

§ 19-17    Time and manner of payment.

§ 19-18    Penalties for delinquent payment.

§ 19-19    Issuance; contents.

§ 19-20    Transferability.

§ 19-21    Issuance of duplicates; mistakes by collector.

§ 19-22    Refunds.

§ 19-23    Collection of taxes by court action.

§ 19-24    Appeals.

§ 19-25    Enforcement of Chapter.

§ 19-26    Remedies cumulative.

Article 2. Schedule of License Taxes.

§ 19-27    License tax based on gross receipts generally.

§ 19-28    Same.

§ 19-29    Same.

§ 19-30    Reserved for future use.

§ 19-31    Reserved for future use.

§ 19-32    Reserved for future use.

§ 19-33    Machines -- generally.

§ 19-34    Auctioneers.

§ 19-35    Auction room or store.

§ 19-36    Automobile repair shop.

§ 19-37    Automobile sales.

§ 19-38-§19-41    Reserved for future use.

§ 19-42    Coin-operated scales and service machines.

§ 19-43    Contractors generally.

§ 19-44    Reserved for future use.

§ 19-45    Reserved for future use.

§ 19-46    Gas and oil distributing plants.

§ 19-47    Reserved for future use.

§ 19-48    Manufacturing -- generally.

§ 19-49-§19-53    Reserved for future use.

§ 19-54    Public utilities.

§ 19-55    Rental of property.

§ 19-56    Securities brokers, etc.

§ 19-57-§19-60    Reserved for future use.

§ 19-61    Vending machines.

§ 19-62-§19-89    Reserved for future use.

Article 3. Health Permits.

§ 19-90    Enforcement of Article.

§ 19-91    Required.

§ 19-92    Application.

§ 19-93    Revocation and suspension.

§ 19-94    Display; surrender upon suspension or revocation.

§ 19-95    “Health officer” defined.

§ 19-96    Transfer.

§ 19-97    Appeals.

§ 19-98    State health permits.

§ 19-99    Fees.

§ 19-100    Penalties.

Article 4. Fee and Service Charge Revenue/Cost Comparison System.

§ 19-101    Delegation of Authority and Direction to City Manager.

§ 19-102    “Costs Reasonably Borne” Defined

§ 19-103    Schedule of Fees and Service Charges Revised 9/14

§ 19-104    Development Project Fees: Public Hearing, Notice, Provision of Data

Article 5. Tobacco Retailer License. (Ord. 3508, 11/14) Revised 12/14

§ 19-105    Purpose and application. Revised 12/14

§ 19-106    Definitions. Revised 12/14

§ 19-107    Mandatory license. Revised 12/14

§ 19-108    Issuance of license. Revised 12/14

§ 19-109    Applications for license. Revised 12/14

§ 19-110    Issuance of a license. Revised 12/14

§ 19-111    License renewal and expiration. Revised 12/14

§ 19-112    License nontransferable. Revised 12/14

§ 19-113    Inspections, investigations and enforcement. Revised 12/14

§ 19-114    Suspension or revocation of license. Revised 12/14

§ 19-115    Penalties for tobacco retailing without a license. Revised 12/14

§ 19-116    Department decision. Revised 12/14

§ 19-117    Appeal procedures. Revised 12/14

§ 19-118    Other penalties. Revised 12/14

§ 19-119    Stipulated fine in lieu of hearing. Revised 12/14

§ 19-120    Implementation. Revised 12/14

ARTICLE 1.
IN GENERAL.

Sec. 19-1 Definitions.

For the purposes of this Chapter, the following words and phrases shall have the meaning respectively ascribed to them by this Section:

Business. Professions, trades and occupations and every kind of calling carried on for profit or livelihood.

Fixed place of business.The premises occupied for the particular purpose of conducting business thereat, and regularly kept open for such purpose with a competent person in attendance for the purpose of attending to such business. Such term shall also include a telephone answering service; provided, that the applicant has a contract or agreement for services for a minimum period of six months. Applicants with such agreement or contract shall pay a fee and be licensed in the same manner as other applicants having a fixed place of business. A telephone answering service shall not be deemed a “Fixed place of business” for the purposes of this Code or any other ordinance of the City which prohibits or regulates door-to-door solicitation, or for the purpose of this Code or any other such ordinance wherein “Fixed place of business” is used.

Gross receipts. The total amount of the sale price of all sales and the total amount charged or received for the performance of any act, service or employment of whatever nature it may be, for which a charge is made or credit allowed, whether or not such service, act or employment is done as a part of or in connection with the sale of goods, wares or merchandise. Such term shall include all other receipts, cash, credits and property of any kind or nature except as excluded in this Section, and any amount for which credit is allowed by the seller to the purchaser without any deduction therefor on account of the cost or the property sold, the cost of the materials used, labor or service costs, interest paid or payable, losses or other expenses whatsoever. Excluded from such term shall be cash discounts allowed and taken on sales; any taxes required by law to be included in or added to the purchase price and collected from the consumer or purchaser; such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit; any property given by the purchaser to the seller as part of the purchase price and so accepted by the seller for resale; amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those for whom collected; and that portion of the receipts of a general contractor which represent payments to subcontractors; provided, that such subcontractors are licensed under this Chapter and that the general contractor furnished the collector with the named and addresses of the subcontractors and the amount paid each subcontractor.

In adopting this Chapter it is the intention of the City Council to tax only those portions of the gross receipts which are attributable to the business activity of the licensee carried on within the City. In any case where a licensee conducts business activities both inside and outside the City, he may upon written application to the Finance Director request the apportionment of those gross receipts which are attributable to business activity within the City and those portions of those gross receipts which are wholly, or partially, exempt from taxation as not being attributable to business activity carried on within the City. In making such application, the Finance Director may require, and the licensee shall be responsible for providing, any business records necessary to determine a fair and equitable apportionment. Any apportionment established shall be reviewed annually by the Finance Director prior to the renewal of such license.

Jobbing business. Every business conducted solely for the purpose of selling goods, wares or merchandise in job lots to wholesale merchants for resale at wholesale to the trade by such wholesale merchants.

Manufacturer. One engaged in making materials, raw or partly finished, into wares suitable for use.

Quarter. A period of three calendar months. The quarters begin on the first day of July, October, January and April of each year. The quarter shall include fractions thereof.

Rental business. Every business conducted for the purpose of selling, or offering to sell, any good, wares, or merchandise other than as a part of a “Wholesale business” or “Jobbing business.”

Vehicle. Every device in, upon or by which any person or property is or may be transported or drawn upon a public street or highway, except devices moved by human power or used exclusively upon stationary rails or tracks.

Wholesale business. Every business conducted solely for the purpose of selling goods, wares or merchandise in wholesale lots to retailers for resale at retail to the trade by such retailers.

Sec. 19-2 Chapter for revenue purposes only.

This Chapter is enacted solely to raise revenue for municipal purposes, and is not intended for regulation.

Sec. 19-3 (reserved for future use.)

Sec. 19-4 Required -- generally.

There are hereby imposed upon the businesses specified in this Chapter license taxes in the amounts prescribed, and no person shall transact and carry on any business in the City without first having procured a license from the City so to do or without complying with all applicable provisions of this Chapter.

Sec. 19-5 Same -- branch establishments, etc.

A separate license may be obtained for each branch establishment or separate place of business in which the business is carried on; or the gross receipts of all branches, establishments or separate places of business operated under one ownership may be reported on one affidavit. A separate license shall be obtained for each kind or class of business covered by a different Section of this Chapter but carried on at one location.

Any person holding a license for the sale of personal property under this Chapter shall also be authorized to rent or lease such personal property without an additional license; provided, that the gross receipts from such rental or leasing shall be included in the license issued.

Sec. 19-6 Applications.

(a)    Every person required to have a license under the provisions of this chapter shall make application for the same to the collector, and upon payment of the prescribed tax the collector shall issue to such person a license.

(b)    The application shall furnish all information required to enable the collector to properly classify the business of the applicant and determine the proper license tax to be paid by such applicant. Each applicant for a license shall properly fill in one of such applications, sign the same and certify, under penalties of perjury, that the contents thereof are true and correct; or sign and swear to the same before the collector, a deputy collector or some other person authorized to administer oaths. The collector and his deputies and assistants are authorized to administer oaths in all matters pertaining to the duties of their respective offices. The completed applications shall be submitted to the collector, who shall compute the proper amount of the license tax and on payment of such amount shall issue the appropriate license.

Sec. 19-7 Statements -- original applications.

(a)    Upon a person making application for the first license to be issued for a newly established business, in all cases where the amount of license tax to be paid is based upon gross receipts or is graduated according to some other sliding scale, such person shall furnish to the collector, for his guidance in ascertaining the amount of license tax to be paid by the applicant, a written statement upon a form provided by the collector, signed by him and certified under penalty of perjury to be true and correct, or sworn to before the collector, his deputies or assistants, or any person authorized to administer oaths, setting forth such information as may be therein required and as may be necessary properly to determine the amount of the license tax to be paid by the applicant.

(b)    If the amount of the license tax to be paid by such applicant is based upon the amount of his gross receipts, he shall estimate the amount of his gross receipts for the period to be covered by the license for the purpose of determining the license bracket which will be applicable to him for the period to be covered by the license to be issued. Such estimate, if accepted by the collector as reasonable, shall be used in determining the amount of license tax to be paid by the applicant; provided, that the amount of the license tax so determined shall be tentative only and such person shall, within 15 days after the expiration of the period for which such license was issued, furnish the collector with a certified or sworn statement upon a form furnished by the collector, containing the data required to show the licensing bracket properly applicable to such person during the period of such license and the license tax for such period shall be finally ascertained and paid in the manner provided by this Chapter, after deducting from the payment found to be due the amount paid at the time such first license was issued. The collector shall not issue to any such person another license for the same or any other business until such person shall have furnished to him the written statement and paid the license tax as required in this Chapter.

(c)    If the amount of the license tax to be paid by such applicant is graduated according to some sliding scale other than gross receipts, the applicant shall furnish to the collector, for his guidance in ascertaining the amount of license tax to be paid, a certified or sworn statement, upon a form provided by the collector, setting forth such information as may be therein required and as may be necessary properly to determine the amount of license tax to be paid by the applicant, which statement shall show among other things the number of vehicles or tonnage thereof and the number of seats, chairs, rooms, tables or other units used or involved in such person’s business as of the time of filing such application. Such person shall thereupon pay the required license tax in advance, computed in accordance with the information contained in such statement.

(d)    In all cases, such applicant, upon the filing of his application, shall pay the prescribed minimum license fee, in advance; provided, that such license is issued on an annual basis, it shall be prorated as follows:

1.    If the application is made during the quarter beginning July first, 100% of such minimum shall be paid.

2.    If such application is made during the quarter beginning October first, 75% of such minimum shall be paid.

3.    If such application is made during the quarter beginning January first, 50% of such minimum shall be paid.

4.    If such application is made during the quarter beginning April first, 25% of such minimum shall be paid.

In cases where such license fee is based on a flat, annual charge, such fee shall be prorated. In cases where license fees are based on gross receipts, only the minimum fee shall be prorated.

Sec. 19-8 Same -- renewals.

(a)    In all cases where the amount of license tax to be paid is based upon gross receipts or is graduated according to some other sliding scale, the applicant for a renewal of a license shall submit to the collector, for guidance in ascertaining the amount of the license tax to be paid by the applicant, a written statement upon a form to be provided by the collector, sworn to before the collector, his deputies or assistants or by any person authorized to administer oaths, or certified under the penalties of perjury to be true and correct, setting forth such information concerning the applicant’s business during the preceding license period as may be required by the collector to enable him to ascertain the amount of license tax to be paid by such applicant pursuant to the provisions of this Chapter. Such statement shall be used as the basis for determining the amount of license tax to be paid by the applicant for the renewal period.

(b)    Where the license tax to be paid under this Chapter is based upon gross receipts, only one such statement need be filed during any fiscal year (unless the collector requires a corrected statement to be filed), which statement shall be filed at the time the first license is procured, as provided in Section 19-7, and thereafter on or before the 15th day of July.

Sec. 19-9 Same -- conclusiveness; information to be confidential.

No statement filed pursuant to this Chapter shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the City from collecting by appropriate action such sum as is actually due and payable under this Chapter. Such statement and each of the several items therein contained shall be subject to audit and verification by the collector, his deputies or authorized employees of the City, who are hereby authorized to examine, audit and inspect such books and records of any licensee or applicant for license as may be necessary, in their judgment, to verify or ascertain the amount of license tax due.

All licensees, applicants for licenses and persons engaged in business in the City are hereby required to permit an examination of such books and records for the purposes of this Chapter.

The information furnished or secured pursuant to this Section of Sections 19-7 and 19-8 shall be confidential. Any unwarranted disclosure or use of such information by any officer or employee of the City shall constitute a violation of this Code and such officer or employee shall be subject to the penalty provisions of this Code.

Sec. 19-10 Same -- failure to file; corrected statements; hearing.

If any person fails to file any required statement within the time prescribed, or if after demand therefor made by the collector he fails to file a corrected statement, the collector may determine the amount of license tax due from such person by means of such information as he may be able to obtain.

In case such a determination is made, the collector shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States post office at the City, postage prepaid, addressed to the person so assessed at his last known address. Such person may, within ten days after the mailing or serving of such notice make application, in writing, to the collector for a hearing on the amount of the license tax. If such application is made, or if application is not made within the time prescribed, the collector shall cause the matter to be set for hearing within 15 days before the City Council. The collector shall give at least ten days notice to such person of the time and place of hearing in the manner prescribed above for the service of notice of assessment. The City Council shall consider all evidence produced, and written notice of its findings thereon, which findings shall be final, shall be served upon the applicant in the manner prescribed above for the service of the notice of assessment.

Sec. 19-11 Exemptions -- charitable, nonprofit, religious, etc., activities.

The provisions of this Chapter shall not be deemed or construed to require the payment of a license tax or fee to conduct, manage or carry on any business, occupation or activity from any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes or from which profit is not derived, either directly or indirectly, by any person.

No license tax or fee shall be required for the conducting of any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects within the City, whenever the receipts of any such entertainment, concert, exhibition or lecture are to be appropriated to any church or school or to any religious or benevolent purpose. No license tax or fee shall be required for the conducting of any entertainment, dance, concert, exhibition or lecture by any religious, charitable, state, county or municipal organization or association whenever the receipts of any such entertainment, dance, concert, exhibition or lecture are to be appropriated for the purpose and objects for which such organization or association was formed and from which profit is not derived, either directly or indirectly by any person; provided, that nothing in this Section shall be deemed to exempt any such organization or association from complying with the provisions of this Code, or any other ordinance of the City requiring a permit from the City Council or any commission or officer to conduct, manage or carry on any profession, trade, calling or occupation.

Whenever any event is sponsored or conducted by a charitable organization, at which goods, wares and merchandise are sold to persons other than members of such charitable organization, or at which any person has been paid a fee as a lecturer, entertainer or in any other capacity related to the conduct of such event, a business license shall be required under the appropriate Section of this Chapter. In the event the required license is on a gross receipts basis, any amount collected by the charitable organization shall be deducted from the gross

receipts.

Sec. 19-12 Same -- disabled persons.

Any person who is unable to obtain a livelihood by manual labor due to physical disability may, at the discretion of the City Council, obtain a license to hawk or peddle any goods, wares or merchandise without payment of any license tax or fee, by applying to the City Council and producing a certificate from local physician showing the applicant to be physically disabled.

Sec. 19-13 Same -- minors.

Every natural person of the age of 16 years or under whose annual gross receipts from any business are $500 or less shall not be required to obtain a business license under the provisions of this Chapter.

Sec. 19-14 Same -- commercial fishermen.

No business license shall be required by this Chapter for any commercial fisherman selling fish to licensed concessionaires on Municipal Wharf No. 1 and Municipal Wharf No. 2, to canneries or to other commercial fishermen. Licensed concessionaires shall be as defined by Chapter 17. Commercial fishermen are for the purposes of this Section fishermen holding a valid commercial license issued by the Division of Fish and Game of the State.

Sec. 19-15 Same -- County Fairgrounds.

Notwithstanding any Section in this Chapter to the contrary, no license shall be required for any business conducted on the County Fairgrounds in connection with and during the period, not to exceed two weeks in any one year, when the annual County Fair is held thereon.

Sec. 19-16 Approval of application for peddler’s licenses.

Repealed by Ord. 3472.

Sec. 19-17 Time and manner of payment.

All license taxes under this Chapter shall be paid in advance in the legal currency of the United States at the office of the collector.

Any person carrying on, either as a principal or agent, any business in the City not specifically set forth in this Chapter shall pay the amount of the license tax provided for the business nearest corresponding to the nature of the business sought to be licensed.

The annual licenses shall be due and payable to the City on the first day of July of each year.

Sec. 19-18 Penalties for delinquent payment.

For failure to pay a license tax when late and unpaid as of 12:00 midnight on August 15, the collector shall add a penalty of 20%, and an additional penalty of 10% on the 15th of each month thereafter until the tax and penalty are paid; provided, that the amount of such penalty to be added shall in no event exceed 50% of the amount of the license tax due. In the event that August 15th falls on Saturday, Sunday or a holiday at such time city offices are closed, last date to make full payment to avoid the penalty will become the first working day following the Saturday, Sunday or holiday. Failure of City to provide a return form does not excuse operator from the obligation to timely remit the tax pursuant to this Article.

In the case of a newly established business, no penalty shall be imposed if the license tax is paid within 30 days after the commencement of operation. Otherwise, 20% will be added at the end of the first 30 days and 10% added every 30 days thereafter; provided, that the amount of such penalty to be added shall in no event exceed 50% of the amount of the license tax due. (Ord. 3245 § 1, 1999)

Sec. 19-19 Issuance; contents.

It shall be the duty of the collector to prepare and issue a license under this Chapter for every person liable to pay such license tax, and to state in each license the amount thereof, the period of time covered thereby, the name of the person to whom issued, the business licensed and the location or place where such business is to be carried on.

Sec. 19-20 Transferability.

No license under this Chapter shall be valid except for the location for which the original application therefor was made and the license issued. In the event of the removal of such licensed business to another location, the original license shall be presented to the collector, together with a statement of such proposed removal setting forth the new location. The collector, after submitting the statement of removal to the Building Inspector for his approval, may approve the transfer of the license to the new location.

No license granted or issued under any provisions of this Chapter shall be in any manner transferred or assigned or authorize any person other than is therein mentioned or named to do business.

Sec. 19-21 Issuance of duplicates; mistakes by collector.

The collector shall make a charge for each duplicate license issued to replace any license issued under the provisions of this Chapter which has been lost or destroyed. Such charge shall be in an amount set by resolution. In no case shall any mistake made by the collector in stating the amount of the license tax prevent or prejudice the collection by the City of what shall be actually due from anyone carrying on a business subject to a license under this Chapter.

Sec. 19-22 Refunds.

All licenses shall be issued from the period of time set forth in the license and no licensee shall be entitled to the refund of any portion of the tax paid by reason of the termination of such licensed activity prior to the expiration of the term for which such license shall have been issued.

Any business required to cease activity within the City as the result of public acquisition of the premises by any governmental agency, or any business required to cease activity as a result of an owner-participation agreement between the owner of the premises and the Urban Renewal Agency, shall be entitled to a refund of an amount prorated as to the time remaining under the license at the time the business activity ceases. Such licensee shall file a verified claim with the Finance Director stating the date of cessation of business activity and the reason therefor.

Sec. 19-23 Collection of taxes by court action.

The amount of any license tax imposed by this Chapter shall be deemed a debt to the City, and any person carrying on any business mentioned in this Chapter without having a license from the City so to do shall be liable to an action in the name of the City in any court of competent jurisdiction for the amount of license tax imposed on such business, together with all penalties then due thereon in any such action, and the sum of $35 which, if judgment is recovered, shall be applied as collection fees for such plaintiff and included and assessed as recoverable costs in such action.

Sec. 19-24 Appeals.

Any aggrieved by any decision of an administrative officer or agency with respect to the issuance or refusal to issue a license under this Chapter may appeal to the City Council by filing a notice of appeal with the City Clerk. The staff shall thereupon fix a time and place for hearing such appeal. The City Clerk shall give notice to such person of the time and place of hearing by serving it personally or by depositing it in the United States post office at the City, postage prepaid, addressed to such person at his last known address.

Sec. 19-25 Enforcement of Chapter.

All police officers are hereby appointed inspectors of licenses and in addition to their several duties as police officers are hereby required to examine all places of business and persons in their respective beats liable to pay a license tax to see that such licenses are taken out; and shall have and exercise the following powers and duties:

(a)    To make arrests for the violation of any of the provisions of this Chapter.

(b)    To enter free of charge, at any time, any place of business for which a license is required by this Chapter and to demand the exhibition of such license for the current term by any person engaged or employed in the transaction of such business, and if such person shall then and there fail to exhibit such license such person shall be liable to the penalty provided for a violation of this Chapter.

Sec. 19-26 Remedies cumulative.

The conviction and punishment of any person for transacting any business without a license shall not excuse or exempt such person from the payment of any license tax due or unpaid at the time of such conviction, together with all penalties due as provided in this Chapter, and nothing in this Chapter shall prevent a criminal prosecution for any violation of the provisions of this Chapter.

ARTICLE 2.
SCHEDULE OF LICENSE TAXES.

Sec. 19-27 License tax based on gross receipts generally.

Every person carrying on the businesses enumerated in this Section shall pay an estimated annual license tax based on the following bracket system:

(a)    Gross receipts of $12,500 or less per annum, the sum of $26.

(b)    Gross receipts of $12,500 and less than $37,500 per annum, the sum of $26 plus $6 for each $2,500 of gross receipts or fraction thereof in excess of $12,500 per annum.

(c)    Gross receipts in excess of $37,500 per annum, the sum of $86 plus $3 for each $2,500 of gross receipts or fraction thereof in excess of $37,500 per annum.

(d)    The businesses subject to this Section are as follows:

Ambulance service

Art galleries

Athletic events

Auto court, trailer court

Auto parts

Automobiles for hire

Barbershop

Beauty shop

Bicycles, sale, repair or rental

Boats, sale, repair or storage

Boats for hire (including tackle shop, snack bar or boat hoist)

Bowling alleys

Catering service

Chimney cleaning

Child care nursery

Circuses, carnivals, fairs and other similar events or concessions therein

Cleaning or laundry trucks

Clothing, sale of

Dancing, public hall

Dancing school

Delivery of gasoline, oil or other petroleum products

Drugstore

Farmers

Fish market, retail

Florist

Furniture

Furs

Garden service

Gift shop

Handicrafts and works of art

Hardware

Hospital

Hotel

Housecleaning

Household appliances and furnishings

Janitorial and cleaning services

Jewelry

Junk collectors

Junk dealers

Leather shop

Lumber yard

Merchant, general

Motel

Museum

Music store

Nursery school

Office equipment

Paint store

Parking lots

Pawnbroker

Peddlers

Pest control

Piano tuner

Planing mill

Pool room

Printing and graphic

Private instructor

Produce sales

Public garage

Racquetball facility

Rest Home

Rooming house (over four guests)

Sanitary supplies and service

Sanatorium

Sanatory or convalescent hospital

Scooter or motor bikes, sale, repair or rental

Secondhand dealer

Ship chandlery

Shoes, sale or repair

Signs, sale

Skiff rental

Solicitors

Sporting goods

Stationery store

Storage

Swimming pool maintenance

Telephone soliciting

Theaters

Tool sharpening

Trailer and camper sales

Tree maintenance

Trucking

Trucks and automobiles, rent or lease

Upholstery

Wholesale delivery (other than produce)

Wholesale pickup

Window cleaning

Taxicabs

Sec. 19-28 Same.

Every person carrying on the businesses enumerated in this Section shall pay an estimated annual license tax based on the following bracket system:

(a)    Gross receipts of $25,000 or less per annum, the sum of $26.

(b)    Gross receipts in excess of $25,000 per annum, the sum of $26 plus $3 for each $2,500 of gross receipts or fraction thereof in excess of $25,000 per annum.

(c)    The businesses subject to this Section are as follows:

Awning sales and repairs

Bakeries

Bath and massage

Batteries, sales and service

Blacksmith or iron works

Boardinghouse (over four guests)

Book store

Cabinetmaking

Candy store

Cigar store

Cleaning, dyeing and renovating (fixed place of business)

Dairy products

Dressmaking or alterations

Feed and fuel

Fish market, wholesale

Gardening service

Glazier

Golf course

Golf driving range

Grocer and meat market

Gymnasium

Ice manufacturer and distributor

Fire extinguisher service

Laundry or launderette

Lockers, frozen food

Locksmith

Machine shop

Mail order

Newspaper distributing

Newsstand or newspaper distributor

Pet shop

Physical culture

Picture gallery

Produce

Recording services and repairs

Rental of equipment

Repair shop or repair service

Restaurant

Rug cleaning

Service station

Signs

Skating rink

Skateboard park

Snack bar

Statuary

Tailor

Tires, retreading and vulcanizing

Towel supply

Watchmaker, repairs

Wholesale

Wood yard

Sec. 19-29 Same.

Every person carrying on the businesses enumerated in this Section shall pay an estimated annual license tax based on the following bracket system:

(a)    Gross receipts of $12,500 or less per annum, the sum of $26.

(b)    Gross receipts in excess of $12,500 per annum, the sum of $26 plus $6 for each $2,500 of gross receipts or fraction thereof in excess of $12,500 per annum.

(c)    The businesses subject to this Section are as follows:

Architect/designer

Computer service

Consulting service

Accountant, auditor

Abstract company

Advertising

Appraiser

Architect

Assayer

Attorney at law

Bacteriologist

Brokers (stock, bond, real estate, boat, insurance, etc.)

Boarding kennels

Business college

Chemist or chemical laboratory

Chiropodist

Chiropractor

Clinic

Collection agency

Consultant

Dental laboratory

Dentist

Designer or illustrator

Dog and cat hospital

Electrologist

Employment agency

Engineer

Finance company

Fortunetelling and other similar practices

Funeral director

Geologist

Gunsmith, repair

Hearing aid center

Income tax service

Insurance adjuster

Interior decorator

Land title company

Lapidary

Masseurs and masseuses

Oculist

Optician

Optometrist

Osteopath or osteopathist

Photographer

Physical therapist

Psychologist

Public relations service

Radio and TV stations

Research laboratories

Research service

School of cosmetology

Security patrol

Sign painter

Stenographer, public

Telephone answering service

Tours and related visitor services

Travel agency

Veterinary

Secs. 19-30, 19-31, 19-32. (Reserved for future use.)

Sec. 19-33 Machines -- generally.

Every person engaged in the business of maintaining, owning, or operating any coin-operated machine or mechanical device which renders any service, provides amusement or entertainment, furnishes any information, provides music, or vends goods of any description or any combination thereof, into which money or any other token of value is deposited or paid for the operation thereof, shall pay an estimated annual license tax of $50 upon the first $2,500 of gross receipts per annum and $5 for each additional $500 of gross receipts per annum.

Sec. 19-34 Auctioneers.

Every person carrying on the business of an auctioneer shall pay a license tax of $200 for each auction, and an additional $100 for each day any such auction is conducted in excess of three days.

This Section shall not apply to an auctioneer conducting an auction room or store in the City.

Sec. 19-35 Auction room or store.

Every person carrying on the business of conducting an auction room or store where auctions are regularly held shall pay a license tax of one-seventeenth (1/17) of one-half percent (1/2%) of the annual gross receipts.

Sec. 19-36 Automobile repair shop.

Every person carrying on the business of an auto repair shop shall pay an annual license tax prescribed by Section 19-27; provided, that such business shall not be subject to such license tax if conducted in connection with a public garage, when such auto repair shop is owned and controlled by the owner of such public garage.

For the purpose of this Section, the term “auto repair shop” shall mean any shop, building, room, place or space wherein, for compensation, any automobile, other motor vehicle, or any part thereof is repaired, remodeled, overhauled, reconditioned or painted. The following operations performed on or within a motor vehicle at a gasoline filling or service station shall not be deemed to constitute such premises, nor the business conducted therein, that of an “auto repair shop” for the purposes of this Section:

(a)    The repairing of changing of a tire.

(b)    The cleaning or changing of a spark plug

(c)    The cleaning and washing of an automobile.

(d)    The installation of a fan belt.

(e)    The charging, sale and installation of a battery.

(f)    The replacement of light bulbs.

(g)    The replacement of radiator hose.

(h)    The lubrication of an automobile.

(i)    The adjustment, but not relining, of brakes.

(j)    All such other services performed on or rendered to a motor vehicle which ordinarily take little time, or are completed while the customer is present, and which do not customarily or usually require the services of a qualified automotive mechanic.

Sec. 19-37 Automobile sales.

Every person carrying on a business of automobile or truck sales, either new or used, shall pay an estimated annual license tax based on the following formula:

(a)    Gross receipts of $50,000 or less per annum, the sum of $51.

(b)    Gross receipts in excess of $50,000 per annum, the sum of $51 plus $.75 for each $2,500 of gross receipts or fraction thereof in excess of $50,000 per annum.

Every person licensed under this Section shall also be permitted to rent or lease automobiles or trucks without an additional license; provided, that the gross receipts from such leasing or renting shall be added to the gross receipts under this Section.

Secs. 19-38 to 19-41. (Reserved for future use.)

Sec. 19-42 Coin-operated scales and service machines.

(a)    Every person engaged in the business of maintaining or operating any coin-operated scales, weighing machines or any other coin-operated machine or mechanical device which renders any service or furnishes any information in return for a coin or token of value, installed and maintained for profit or gain, the operation of which machine or device is not otherwise specifically licensed or exempted from license under this Chapter, shall pay an annual license tax per machine as follows:

1.    Where money or token of value deposited or paid is $.01 the tax shall be $1.

2.    Where money or token of value deposited is in excess $.01 the tax shall be $5.

(b)    Nothing in this Section shall be construed to require the payment of any license tax for the operation of any automatic telephone or coin box for the receipt of fares on any carrier, or any other coin receiving device the use of which is merely incidental to the conduct of another business operating under any franchise.

Persons in an established place of business, who pay a license tax on gross receipts and own and operate any coin-operated scales and service machines, need not obtain a separate machine license but may include the sales from such machine in their gross receipts.

Sec. 19-43 Contractors generally.

Every person transacting and carrying on the business of general engineering or building contractor or other general contractor; plumbing, electrical, roofing, painting or plastering contractor; or other specialty contractor, shall pay an estimated annual license tax based on the following bracket system:

(a)    Gross receipts of $50,000 or less per annum, the sum of $51.

(b)    Gross receipts in excess of $50,000 per annum, the sum of $51 plus $3 for each $2,500 of gross receipts or fraction thereof in excess of $50,000 per annum.

If any person transacting the businesses enumerated in this Section shall carry on a retail, wholesale, or jobbing business, or any other business, he shall be required to obtain a license and pay the tax specified for such other business, in addition to the license tax specified in this Section.

The receipts of the contractors enumerated in this Section from contracts performed wholly outside the City need not be included in their gross receipts for the purpose of computing the license tax. Any such contractor who does not maintain a fixed place of business within the City shall be required to obtain a license and pay the tax specified in this Section with respect to any contract performed by him within the City.

For purpose of this Section, the term “contractor” is defined by Chapter 9, Division 3 of the Business and Professions Code of the State of California.

A contractor making application for a business license of the City shall present evidence of having a valid state contractor’s license.

Secs. 19-44, 19-45. (Reserved for future use.)

Sec. 19-46 Gas and oil distributing plants.

Every person transacting or carrying on the business of operating a gasoline or oil distributing plant within the City shall pay an estimated annual license tax based on the following bracket system:

(a)    Gross receipts of $50,000 or less per annum, the sum of $41.

(b)    Gross receipts in excess of $50,000 per annum, the sum of $41 plus $2.40 for each $2,500 of gross receipts or fraction thereof in excess of $50,000 per annum.

Sec. 19-47 (Reserved for future use.)

Sec. 19-48 Manufacturing -- generally.

Every person engaged in the business of manufacturing, except those persons specifically covered by other Sections of this Chapter, shall pay an estimated annual license tax based on the following bracket system:

(a)    Gross receipts of $25,000 or less per annum, the sum of $26.

(b)    Gross receipts of $25,000 and less than $50,000 per annum, the sum of $56.

(c)    Gross receipts of $50,000 and less than $250,000 per annum, the sum of $56 plus $30 for each $25,000 of gross receipts of fraction thereof in excess of $50,000 per annum.

(d)    Gross receipts of $250,000 and less than $500,000 per annum, the sum of $296 plus $30 for each $50,000 of gross receipts or fraction thereof in excess of $250,000 per annum.

(e)    Gross receipts of $500,000 per annum or more, the sum of $446 plus $25 for each $50,000 of gross receipts or fraction thereof in excess of $500,000 per annum.

Every person licensed pursuant to this Section may engage in the wholesale or retail sales of goods manufactured by him; provided, that any showroom or retail outlet shall be on the licensed premises, and the sales price of goods sold shall be included in the gross receipts pursuant to this Article. Any person licensed pursuant to this Section who either sells goods not manufactured by him, or who maintains a retail or wholesale outlet on separate premises within the City, shall obtain a separate license for such activity.

Sec. 19-49 to 19-53. (Reserved for future use.)

Sec. 19-54 Public utilities.

Every person engaged in the business of operating a bus company, express company, telegraph, telephone, water, gas or electric company or other public utility within the City shall be required to obtain a license and pay the license tax prescribed by Section 19-48; provided, that the provisions of all ordinances with reference to the granting of a franchise to such public utility and requiring the payment of a franchise tax by it shall remain in full force and effect.

Sec. 19-55 Rental of property.

Every person engaged in the business of owning, conducting or operating any apartment house, house court or bungalow containing ten or more rental units, and every person engaged in the business of renting, or letting ten or more apartments, single-family dwellings or other accommodations for dwelling, sleeping or lodging in such place, shall pay an estimated annual license tax for each fiscal year in the amount determined as follows:

(a)    Gross receipts of $12,500 or less per annum, the sum of $15.

(b)    Gross receipts in excess of $12,500 per annum, the sum of $15 plus $6 for each $2,500 of gross receipts or fraction thereof in excess of $12,500 per annum.

This Section shall not be applicable to real estate brokers or agents licensed pursuant to this Chapter who act as agents of owners or operators of apartment houses, house courts, bungalow courts, single-family dwellings or other accommodations for dwelling.

Sec. 19-56 Securities brokers, etc.

Every person who shall sell or offer to sell any securities of any corporation, trust, partnership or other association, except such securities as may be the property of the person so selling or offering to sell the same, shall be required to obtain a license and pay the license tax prescribed by Section 19-29.

Secs. 19-57 to 19-60. (Reserved for future use.)

Sec. 19-61 Vending machines.

Every person maintaining a machine for the vending of goods, wares, merchandise, gum, foodstuffs, potable drinks or for vending cigarettes, into any of which machines money or tokens of value are deposited or paid for the operation thereof, shall pay an annual license fee for each such machine and such annual license tax shall be collected in accordance with the following schedule:

(a)

$.01 to $.10, inclusive    

$1

(b)

$.11 or more (except cigarette machines)    -

$5

(c)

Cigarette machines    =

$1

No license tax shall be required for machines vending matches or United States postage stamps where the market value of the merchandise vended equals approximately the amount of money deposited in the machine. The licenses provided for in this Section shall be valid only for the maintenance of such machines by the licensee therein named in the place or upon the premises therein described.

Persons in an established place of business who pay a license tax on gross receipts and own and operate a vending machine need not obtain a separate machine license, but may include the sales from such machine in their gross receipts.

Secs. 19-62 to 19-89. (Reserved for future use.)

ARTICLE 3.
HEALTH PERMITS.

Sec. 19-90 Enforcement of Article.

The provisions of this Article shall be enforced by any duly authorized employee or agent of the City and by the duly appointed representative of the County Department of Public Health.

Sec. 19-91 Required.

(a)    No person, whether principal or agent, shall engage in the processing, manufacture, packing, preparing or selling, whether at wholesale or retail, including the vending by machines, any food or beverage for human consumption without first obtaining a health permit.

(b)    No person, whether principal or agent, shall engage in the business of a public laundry, barbershop, laundromat, beauty shop, bathhouse or tattoo parlor without first obtaining a health permit.

Sec. 19-92 Application.

Applications for such permits shall be made in writing to the health officer, giving such information as he may require to carry out the purposes of this Article. If, after investigation, the health officer finds that the applicant and his place of business conform to all of the relevant sanitation and health laws and regulations of the state and City, he shall issue such permit for the specific place where such business is to be carried on.

Sec. 19-93 Revocation and suspension.

Upon proof to his satisfaction of the violation by the permittee of any of such laws or regulations, the health officer may temporarily suspend or may revoke such permit. No person whose permit has been suspended or revoked shall continue to engage in or carry on the business for which the permit was granted, unless and until, in the case of suspension, such permit has been reinstated by the health officer.

Sec. 19-94 Display; surrender upon suspension or revocation.

(a)    All permits issued pursuant to this Article shall be kept posted by the permittee in a conspicuous place in the permittee’s place of business.

(b)    If any such permit is suspended or revoked, it shall be surrendered to the health officer upon his demand.

Sec. 19-95. “Health Officer” defined.

For the purposes of Sections 19-91 through 19-94, the term “health officer” shall mean the duly appointed representative of the County Department of Public Health.

Sec. 19-96 Transfer.

No permit issued under this Article shall be transferable from person to person, nor shall it be valid for any other location than that for which it was issued.

Sec. 19-97 Appeals.

(a)    Any person whose application for a permit has been denied or whose permit has been suspended or revoked may appeal such determination to the City Council.

(b)    Such appeal must be submitted to the City Clerk not later than 30 days after notification of such denial, suspension or revocation. If no appeal is filed within 30 days, the determination shall be final.

(c)    Upon receipt of an appeal, the City Clerk shall set the matter on the agenda of the next regular or adjourned meeting of the City Council; provided, that such meeting shall be at least ten calendar days after receipt of such appeal. At least five calendar days prior to the hearing, the City Clerk shall mail notice of such hearing to the person filing the appeal and to the health officer making such determination.

(d)    When any appeal is made from the action of the health officer suspending or revoking a permit, the filing of the written appeal shall operate to stay the suspension or revocation until final disposition of the appeal by the City Council.

Sec. 19-98 State health permits.

Whenever the state requires a permit which, in the opinion of the health officer, substantially meets the requirements for permits to be issued under this Section. such permit shall be deemed to comply with this Article. The determination by the health office that such permit does not meet the requirements of this Section shall be appealable in the same manner as set forth in Section 19-97 herein.

Sec. 19-99 Fees.

Any fees required by the county for the issuance, renewal, inspection or other activities of the health officer in connection with the issuance and maintenance of health permits shall be applicable to the permits granted pursuant to this Article. Any such fees collected shall be the property of the county to defray the cost of administration of this Article.

Sec. 19-100 Penalties.

Any person who violates the provisions of this Article shall be guilty of a misdemeanor. Such penalties are non-exclusive and shall prohibit or prevent the City from concurrently or separately pursuing any other remedy at law.

ARTICLE 4.
FEE AND SERVICE CHARGE REVENUE/COST COMPARISON SYSTEM

Sec. 19-101 Delegation of Authority and Direction to City Manager

(a)    The City Manager is delegated the authority and directed to provide documents to the City Council to implement the policies set forth herein to adjust fees and charges to recover the percentage of costs reasonably borne as established hereby, in providing the regulation, product or service listed in Section 19-103 of this Article.

(b)    The City Manager is delegated the authority to issue Executive Orders defining terms and setting out administrative, fee collection and other financial procedures.

(c)    The term “costs reasonably borne” shall be as defined in Section 19-102 below. In adjusting fees and charges, the City Manager shall act in an administrative and ministerial capacity and shall consider only the standards and criteria established by this Article and the procedures set hereby and by applicable State law.

Sec. 19-102 “Costs Reasonably Borne” Defined

“Costs reasonably borne,” as used and ordered to be applied in this Chapter are to consist of the following elements:

(a)    All applicable direct costs including, but not limited to salaries, wages, overtime, employee fringe benefits, services and supplies, maintenance and operation expenses, contracted services, special supplies, and any other direct expense incurred.

(b)    All applicable indirect costs including, but not restricted to, building maintenance and operations, equipment maintenance and operations, communications expenses, computer costs, printing and reproduction, vehicle expenses, insurance, debt service, and like expenses when distributed on an accounted and documented rational proration system.

(c)    Fixed asset recovery expenses, consisting of depreciation of fixed assets, and additional fixed asset expense recovery charges calculated on the current estimated cost of replacement, divided by the approximate life expectancy of the fixed asset. A further additional charge to make up the difference between book value depreciation not previously recovered and reserved in cash and the full cost of replacement, also shall be calculated and considered a cost so as to recover such unrecovered costs between book value and cost of replacement over the remaining life of the asset.

(d)    General overhead, expressed as a percentage, distributing and charging the expenses of the City Council, City Attorney, City Manager, Information Resources Department/City Clerk, Finance Department, Personnel Office, and City Promotion, and all other staff and support service provided to the entire City organization. Overhead shall be prorated between tax-financed services and fee-financed services on the basis of said percentage so that each of taxes and fees and charges shall proportionately defray such overhead costs.

(e)    Departmental overhead, expressed as a percentage, distributing and charging the cost of each department head and his or her supporting expenses as enumerated in subsections a, b, c, and f of this section.

(f)    Debt service costs, consisting of repayment of principal, payment of interest, and trustee fees and administrative expenses for all applicable bond, certificate, or securities issues or loans of whatever nature or kind. Any required coverage factors or required or established reserves beyond basic debt service costs also shall be considered a cost if required by covenant within any securities ordinance, resolution, indenture or general law applicable to the City. (Ord. 3472 § 8, 2012)

Sec. 19-103. Schedule of Fees and Service Charges Revised 9/14

(a)    The fees and service charges listed in general categories below and in detail in the City’s “Master Fee Schedule” shall be automatically adjusted annually in July for Consumer Price Index (CPI) increase so as to recover the listed percentage of costs reasonably borne necessary to provide the listed regulation, product or service. The CPI increase shall be based on the published CPI for San Francisco Area (San Francisco -- Oakland -- San Jose) April Edition. The City Manager, Finance Director and each City department head, under the direction of the City Manager, shall review the fees and services charges periodically and provide, if necessary, an adjusted fee or charge schedule to the City Council for its consideration, in place of or in addition to the automatic annual CPI increase. A full analysis of City costs reasonably borne, as defined in Section 19-102, shall be conducted not less than every five years..

 

Regulation, Product or Service to Be Recovered

Percentage of Costs Reasonably Borne

I.

Development Services:

 

1.

Residential Property Inspection

100

2.

Zoning and Sign Ordinance Permits and Processes

100

3.

Subdivision Ordinance Permits and Processes

100

4.

Environmental Analysis and Determination

100

5.

Tree Removal Permit

100

6.

Annexations

100

7.

Agreements and Report Review

100

8.

Stormwater Erosion Control Plan

100

9.

Administrative Fee for Notification to Obtain a Necessary Permit

100

10.

Maintenance of General Plan and Other Planning and Policy Documents

100

11.

Appeals

20

12.

Permit Extensions, Amendments and Reconsiderations

100

13.

Plan Check

100

14.

Building Permits

100

15.

Encroachment Permits

100

16.

Street Opening Permit

100

17.

Street Patch Charge

100

18.

Driveway, Curb, Gutter, and Sidewalk Permit

100

19.

Public Improvement Design, Plan Check, Inspection

100

20.

Parking Adjustments

fees set by resolution

21.

Illegal Construction

200

22.

Traffic Control Plan Approval

100

23.

Lease Administration

100

24.

Storm Water Plan Administration

100

25.

Sanitary Sewer Rates

fees set by resolution, not subject to CPI adjustment

26.

Sewer Connection Fee

fees set by resolution

 

A separate penalty fee, for any development projects initiated without an appropriate application fee shall be charged in amount equal to 200% of subject application fee.

 

II.

Public Safety Services:

 

 

 

 

1.

Crime Report Copying    

75%

2.

Accident Report Compilation/Copying    

20%

3.

Vehicle Equipment Citation Inspection/Vehicle Identification Verification    

100%

4.

Animal Impound, Temporary Shelter, Release    

50%

5.

Private Fingerprint Processing    

100%

6.

Records Check/Clearance Letters    

100%

7.

Taxicab Owner/Driver Permit Application Review    

100%

8.

Massage Parlor Regulation    

100%

9.

Registration of Sex/Drug Offenders    

100%

10.

Police Background Check    

100%

11.

Security Alarm Permit Application    

100%

12.

Police False Alarm Response    

20%

13.

Party Disturbance Response    

100%

14.

Special Event Stand-by (Fire)    

100%

15.

Water System Improvement Analysis    

100%

16.

Engine Company Inspections    

100%

17.

Fire Prevention Bureau Inspections    

100%

18.

Air Bottle Refilling    

100%

19.

Fire False Alarm Response    

20%

20.

Fire Incident Report Service    

65%

21.

Hazardous Materials Response    

100%

22.

Underground Tank Installation/Removal    

100%

23.

Underground Tank Monitoring    

100%

24.

Hazardous Materials Registration/Monitoring    

100%

25.

Medical Aid Calls    

0%

26.

Fire Hydrant Flow Tests    

70%

 

 

 

III.

Human Services:

 

 

 

(Percentages to be established by future amendment to this Article or set by resolution)

 

IV.

Utility and Enterprise Services:

 

 

 

 

1.

Conference Center    

fees set by resolution

2.

Outer Harbor Moorings    

fees set by resolution

3.

Marina    

fees set by resolution

4.

Parking Program    

fees set by resolution

5.

El Encinal Cemetery    

100%

 

 

 

V.

Maintenance Services:

 

 

 

(Percentages to be established by future amendment to this Article or set by resolution)

 

VI.

Administrative Services:

 

 

 

 

1.

Special Refuse Billing    

100%

2.

Photocopy Services    

100%

3.

Returned Check Processing    

fees set by resolution

4.

Records Research (after first half hour)    

100%

5.

Agenda/Minutes Mailing Service (Postage only)    

100%

6.

Certification of Documents    

10%

7.

Notary Service    

fees set by resolution

8.

Municipal Code and Update Service    

100%

9.

Audio Tape Reproduction    

25%

10.

Transparency Reproduction    

fees set by resolution

11.

FAX Service    

fees set by resolution

12.

Maps and Documents    

fees set by resolution

(b)    The services listed in subsection (a) of this section shall be as defined in that certain document entitled “Cost Control System for the City of Monterey” dated April, 1991, as produced by Management Services Institute, Inc., of Anaheim, California.

(c)    The fees and charges set pursuant to this Article shall take effect immediately upon the passage of a resolution by the City Council setting forth said specific fee amounts, with the exception of Development Project fees which, pursuant to Government Code Section 66017, may not become effective until 60 days after passage of the resolution adopting same; and with the exception of the annual automatic CPI adjustment, which shall take effect every July 1 and shall not require passage of a resolution by the City Council.

(d)    The schedule of frequency of rate adjustments may be varied by the City Manager to adjust revenues sufficient to meet debt service coverage requirements of any bond, certificate, ordinance, resolution, indenture, contract, or action under which securities have been issued by the City which contain any coverage factor requirement. (Ord. 3502 § 2, 2014; Ord. 3464 § 6, 2011; Ord. 3462 § 2, 2011; Ord. 3427 § 2, 2009; Ord. 3310; 08/02)

Sec. 19-104. Development Project Fees: Public Hearing, Notice, Provision of Data.

(a)    Public Hearing. The City Council periodically shall receive at a regularly scheduled meeting oral and written presentations concerning development project fees and charges (as defined in Government Code Section 66000 et seq.) to ensure that increases adequately reflect increases in the cost of services. Such notice, oral and written presentation, and public hearing shall be provided prior to the City Council taking any action on any new or increased project fees or charges in place of or in addition to the automatic annual CPI increase. At least one such public hearing shall be held per the requirements of Government Code Section 66018 or other State law.

(b)    Notice. The City Clerk shall cause notice of said public meeting to be provided as set out in Government Code Sections 66016, 55018 and 6062a. Said notice shall contain the time and place of the hearing, a general explanation of the matter to be considered, and a statement that the data required by Government Code Section 66016 (as set forth in subsection (c) of this section) is available for public inspection.

(c)    Provision of Data. Pursuant to Government Code Section 60016 or other state law, at least ten (10) days prior to the required public hearing as set forth in subsection (a) of this section, the City Manager shall make available to the public data indicating the cost or estimated cost required to provide the service for which the fee or charge is levied and the revenue sources anticipated to provide the service, including general fund revenues. The City Manager also shall provide a summary of the present fee and charge schedules and those proposed at such public hearing. (Ord. 3427 § 3, 2009)

ARTICLE 5.
TOBACCO RETAILER LICENSE. Revised 12/14

Sec. 19-105 Purpose and application. Revised 12/14

(a)    In promoting the health, safety, and general welfare of its residents, the City has a substantial interest in encouraging compliance with Federal, State, and local laws regulating tobacco sales and use.

(b)    State law permits local governments to enact ordinances regarding the local licensing of retailers of tobacco and allows for the suspension or revocation of a local license for a violation of any State tobacco control law.

(c)    This article is adopted to: (1) ensure compliance with business standards and practices of the City; (2) to encourage responsible retailing of tobacco; and (3) to discourage violations of tobacco-related laws, but not to expand or reduce the degree to which the acts regulated by Federal or State law are criminally proscribed or otherwise regulated. (Ord. 3508 § 2, 2014)

Sec. 19-106 Definitions. Revised 12/14

For the purpose of this article, the following words and terms shall have the following meaning:

(a)    “Department” refers to any City department designated by the City Manager to administer and/or enforce the provisions of this article or, if so designated by the City Manager, the Monterey County Department of Health or other County department.

(b)    “Drug paraphernalia” shall have the definitions set forth in California Health and Safety Code Section 11014.5, as that section may be amended from time to time.

(c)    “License” means a tobacco retailer license issued by the City pursuant to this article.

(d)    “Licensee” means any proprietor holding a license issued by the City pursuant to this article.

(e)    “License fee” means the charge established by resolution of the City Council, calculated to recover the reasonable regulatory costs of issuing and administering licenses, retailer education, performing investigations, inspections, and the administrative enforcement and adjudication thereof.

(f)    “Person” means any natural person, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity.

(g)    “Proprietor” means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a ten (10) percent or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person can or does have or share ultimate control over the day-to-day operations of a business.

(h)    “Tobacco paraphernalia” means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed or used for the smoking or ingestion of tobacco products.

(i)    “Tobacco product” means (1) any substance containing tobacco leaf, including but not limited to cigarettes, cigars, pipe tobacco, hookah tobacco, snuff, chewing tobacco, dipping tobacco, bidis, or any other preparation of tobacco and (2) any product or formulation of matter containing biologically active amounts of nicotine that is manufactured, sold, offered for sale, or otherwise distributed with the expectation that the product or matter will be introduced into the human body, but does not include any product specifically approved by the United States Food and Drug Administration for use in treating nicotine or tobacco product dependence.

(j)    “Tobacco retailer” means any person who engages in tobacco retailing.

(k)    “Tobacco retailing” means selling, offering for sale, exchanging, or offering to exchange for any form of consideration tobacco, tobacco products, or tobacco paraphernalia without regard to the quantity sold, offered for sale, exchanged, or offered for exchange. (Ord. 3508 § 2, 2014)

Sec. 19-107 Mandatory license. Revised 12/14

(a)    Any person who is or intends to become a tobacco retailer shall obtain pursuant to this article a license for each fixed location at which tobacco retailing is to occur.

(b)    Any person who is a tobacco retailer as of the effective date of the ordinance enacting this article shall obtain a license within ninety (90) days of the effective date of the ordinance that enacted this article.

(c)    Any person who intends to act as a tobacco retailer shall obtain a license prior to acting as a tobacco retailer.

(d)    Each license shall be prominently displayed in a publicly visible location at the licensed location.

(e)    Nothing in this article shall be construed to grant any licensee any status or right other than to act as a tobacco retailer at the location identified on the face of the license, subject to compliance with all other applicable laws, regulations, or ordinances.

(f)    Nothing in this article shall be construed to render inapplicable, supersede, or apply in lieu of any other provision of applicable law. (Ord. 3508 § 2, 2014)

Sec. 19-108 Issuance of license. Revised 12/14

(a)    No license shall be issued to authorize tobacco retailing at other than a fixed business location. It is unlawful for any person to engage in tobacco retailing at non-fixed locations. For example, tobacco retailing by persons on foot and tobacco retailing from vehicles are prohibited.

(b)    No license shall be issued to authorize tobacco retailing at a temporary or recurring temporary event. For example, tobacco retailing at flea markets and farmers’ markets is prohibited.

(c)    No license shall be issued to authorize tobacco retailing at any location for which a license suspension is in effect or during a period of ineligibility following a revocation pursuant to Section 19-114.

(d)    In the course of tobacco retailing or in the operation of the business or maintenance of the location for which a license is issued, it shall be a violation of this article for a licensee, or any of the licensee’s agents or employees, to violate any local, State, or Federal law applicable to tobacco products, tobacco paraphernalia, or tobacco retailing.

(e)    No person engaged in tobacco retailing shall sell or transfer a tobacco product or tobacco paraphernalia to another person who appears to be under the age of twenty-seven (27) years without first examining the identification of the recipient to confirm that the recipient is at least the minimum age under State law to purchase and possess the tobacco product or tobacco paraphernalia.

(f)    No person who is younger than the minimum age established by State law for the purchase or possession of tobacco products shall engage in tobacco retailing. (Ord. 3508 § 2, 2014)

Sec. 19-109 Applications for license. Revised 12/14

All applications for a license shall be submitted to the Department in the name of each proprietor proposing to conduct tobacco retailing and signed by each prospective proprietor or an authorized agent. Each license application must be accompanied by the required license fee, which is set by resolution of the City Council. A proprietor proposing to conduct tobacco retailing at more than one (1) location shall submit a separate application for each location. Every application shall be submitted on a form supplied by the Department and contain the following information:

(a)    The name, address, and telephone number of each prospective proprietor;

(b)    The business name, address, and telephone number of the fixed location for which the license is sought;

(c)    Whether or not each prospective proprietor has previously been issued a license pursuant to this article that is, or was at any time, suspended or revoked and, if so, the date of the suspension or revocation;

(d)    Proof that the location for which a license is sought has been issued a valid State cigarette and tobacco products retail license by the State of California Board of Equalization pursuant to the California Cigarette and Tobacco Products Licensing Act of 2003 (California Business and Professions Code, Section 22970 et seq.);

(e)    A statement signed by each prospective proprietor that no drug paraphernalia is or will be sold at the location for which the license is sought;

(f)    A statement signed by each prospective proprietor that the proprietor is informed of the laws affecting licenses; and

(g)    Such other information as the City deems necessary for the administration of this article. (Ord. 3508 § 2, 2014)

Sec. 19-110 Issuance of a license. Revised 12/14

(a)    Upon the receipt of a complete application for a license and the license fee required by this article, the Department shall issue a license unless one (1) or more of the following grounds exists:

1.    The application is incomplete or inaccurate;

2.    The application seeks authorization for tobacco retailing at a location for which a suspension is in effect pursuant to this article, for which a license has been revoked pursuant to this article, or for which this article otherwise prohibits issuance of licenses;

3.    The application seeks authorization for tobacco retailing for a prospective proprietor for whom a suspension is in effect pursuant to this article for the subject location or another location, whose license has been revoked pursuant to this article for the subject location or another location, or to whom this article otherwise prohibits a license to be issued;

4.    The Department has information that the prospective proprietor or his or her agent or employee has violated any local, State or Federal tobacco control law, including this article, within the preceding twelve (12) months; or

5.    The application seeks authorization for tobacco retailing that is prohibited pursuant to this article, that is otherwise unlawful pursuant to this code, or that is unlawful pursuant to any other law.

(b)    Any denial of an application for a license shall be in writing, setting forth the reasons for the denial and notifying the applicant for a license that the decision to deny an application for a license shall become final unless the applicant seeks an appeal pursuant to Section 19-117 within fourteen (14) calendar days of the date of service of the Department’s decision. Service of the decision shall be provided in accordance with the service requirements set forth in Section 19-116(a).

(c)    All information required to be submitted pursuant to Section 19-109 in order to apply for a license shall be updated whenever the information changes. A tobacco retailer shall provide the Department with any updates within ten (10) business days of a change. (Ord. 3508 § 2, 2014)

Sec. 19-111 License renewal and expiration. Revised 12/14

(a)    A license is invalid unless the appropriate license fee has been paid in full and the term of the license has not expired. The term of a license is one (1) year beginning each fiscal year on July 1st and ending on June 30th of the following year. Each tobacco retailer shall apply for the renewal of his or her license and submit the license fee no later than thirty (30) calendar days prior to expiration of the term.

(b)    A license that is not timely renewed shall expire at the end of its term. To reinstate a license that has expired, or to renew a license not timely renewed pursuant to subsection (a) of this section, the proprietor must:

1.    Submit the license fee; and

2.    Submit a signed affidavit affirming that the proprietor:

i.    Has not sold and will not sell any tobacco product or tobacco paraphernalia after the license expiration date and before the license is renewed; or

ii.    Has waited the appropriate ineligibility period established for tobacco retailing without a license, as set forth in Section 19-115, before seeking renewal of the license. (Ord. 3508 § 2, 2014)

Sec. 19-112 License nontransferable. Revised 12/14

(a)    A license may not be transferred from one (1) person to another or from one (1) location to another. Whenever a tobacco retailing location has a change in proprietors, a new license is required.

(b)    Notwithstanding any other provision of this article, prior violations at a location shall continue to be counted against a location, and license ineligibility periods shall continue to apply to a location unless:

1.    The location has been fully transferred to an entirely new proprietor or fully transferred to entirely new proprietors; and

2.    The new proprietor(s) provides the Department with clear and convincing evidence that the new proprietor(s) has acquired or is acquiring the location in an arm’s length transaction. As used in this article, the term “arm’s length transaction” shall mean a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two (2) informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this article is not an arm’s length transaction. (Ord. 3508 § 2, 2014)

Sec. 19-113 Inspections, investigations and enforcement. Revised 12/14

(a)    Compliance with this article shall be monitored by the Department or any law enforcement officer. Employees of the Department or a law enforcement officer may conduct compliance checks, including but not limited to youth decoy operations. Any law enforcement officer may enforce the penal provisions of this article. Compliance checks may be unannounced.

(b)    The City shall not enforce any tobacco-related minimum age law against a person who otherwise might be in violation of such law because of the person’s age (hereinafter “youth decoy”) if the potential violation occurs when:

1.    The youth decoy is participating in a compliance check supervised by an employee of the Department or a law enforcement officer;

2.    The youth decoy is acting as an agent of a person designated by the Department to monitor compliance with this article;

3.    The youth decoy is participating in a compliance check funded in part, either directly or indirectly through subcontracting, by the Department; or

4.    The youth decoy has an immunity letter from the District Attorney’s office.

(c)    Whenever evidence of a violation of this article is obtained in any part through the participation of a person under the age of eighteen (18) years old, such a person shall not be required to appear or give testimony in any civil or administrative process brought to enforce this article and the alleged violation shall be adjudicated based upon the sufficiency and persuasiveness of the evidence presented. (Ord. 3508 § 2, 2014)

Sec. 19-114 Suspension or revocation of license. Revised 12/14

(a)    In addition to any other remedy authorized by law, after notice and opportunity to be heard pursuant to Section 19-116 of this article, a license may be suspended or revoked as provided in this section if the Department finds by a preponderance of the evidence that the licensee, or any of the licensee’s agents or employees, has:

1.    Violated any of the requirements, conditions, or prohibitions of this article; or

2.    Pleaded guilty, “no contest” or its equivalent, or admitted to any of the following:

i.    The original or renewal application contained incorrect, false, or misleading information;

ii.    One (1) or more of the grounds for denial listed in Section 19-110 existed before the license was issued; or

iii.    A licensee is convicted of a misdemeanor or felony violation of any tobacco retailing law or regulation, including any provision of this article.

(b)    During any period of suspension or revocation, the licensee shall remove all tobacco products and tobacco paraphernalia from public view. Failure to do so may be considered a subsequent violation.

(c)    When the Department finds a violation as set forth in subsection (a) of this section, the license shall be suspended or revoked as follows:

1.    Upon a finding by the Department of a first license violation, the license shall be suspended for sixty (60) days;

2.    Upon a finding by the Department of a second license violation within any sixty (60) month period, the license shall be suspended for one hundred twenty (120) days;

3.    Upon a finding by the Department of a third license violation in any sixty (60) month period, the license shall be suspended for one hundred eighty (180) days; and

4.    Upon a finding by the Department of a fourth license violation within any sixty (60) month period, the license shall be revoked and no new license shall issue for the location until five (5) years have passed from the date of revocation.

(d)    Violation by a licensee at one (1) location shall not be construed as a violation at another location of the same licensee, nor shall violations by a prior licensee at the same location be accumulated against a subsequent licensee at the same location.

(e)    A license shall be revoked if the Department finds that one (1) or more of the grounds for denial of an application for a license pursuant to Section 19-110 existed at the time the application was made or at any time before the license was issued. (Ord. 3508 § 2, 2014)

Sec. 19-115 Penalties for tobacco retailing without a license. Revised 12/14

(a)    In addition to any other penalty authorized by law, if a court of competent jurisdiction determines, or the Department finds after notice and opportunity to be heard pursuant to Section 19-116, that any person has engaged in tobacco retailing at a location without a valid license, either directly or through the person’s agents or employees, the person shall be ineligible to apply for, or to be issued, a license as follows:

1.    After a first violation of this section at a location, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until sixty (60) days have passed from the date of the violation.

2.    After a second violation of this section at a location within any sixty (60) month period, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until one hundred eighty (180) days have passed from the date of the violation.

3.    After a third or subsequent violation of this section at a location within any sixty (60) month period, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until five (5) years have passed from the date of the violation.

(b)    Any imposition of a penalty pursuant to this section shall be in writing, setting forth the reasons for the imposition of a penalty and notifying the person subject to the penalty that the decision to impose the penalty shall become final unless the person seeks an appeal pursuant to Section 19-117 within fourteen (14) calendar days of the date of service of the Department’s decision. Service of the decision shall be provided in accordance with the service requirements set forth in Section 19-116(a). (Ord. 3508 § 2, 2014)

Sec. 19-116 Department decision. Revised 12/14

(a)    Upon determining the existence of any of the grounds pursuant to this article for the suspension or revocation of a license, or the imposition of a penalty for tobacco retailing without a license, the Department shall issue a notice of intended decision to the applicant for a license, the licensee, or the person against whom the penalty for tobacco retailing without a license is directed. The notice shall be provided by personal service or by first class mail, postage prepaid, and shall include a copy of the affidavit or certificate of mailing.

(b)    The notice of intended decision shall state all the grounds upon which the revocation, suspension, or imposition of penalty is based.

(c)    The notice of intended decision shall specify the effective date of the action.

(d)    The notice of intended decision shall state that the Department shall give the applicant for a license, the licensee, or the person against whom the penalty for tobacco retailing without a license is directed an opportunity to request a hearing thereon. The hearing shall be an informal hearing before the Department. Following the hearing, or within a reasonable time if no hearing is requested, the Department shall issue a decision and serve the decision in accordance with the service requirements set forth in subsection (a) of this section.

(e)    The decision of the Department shall be in writing, setting forth the reasons for the decision, and shall advise the applicant for a license, the licensee, or the person against whom the penalty for tobacco retailing without a license is directed that the decision to suspend or revoke the license, or to impose the penalty for tobacco retailing without a license, shall become final unless the applicant for a license, the licensee, or the person against whom the penalty for tobacco retailing without a license is directed seeks an appeal pursuant to Section 19-117. (Ord. 3508 § 2, 2014)

Sec. 19-117 Appeal procedures. Revised 12/14

With regard to any denial of an application for a license pursuant to Section 19-110 or any decision issued by the Department pursuant to Section 19-116, the following rules apply:

(a)    A decision of the Department to deny an application for a license, to suspend or revoke a license, or to impose a penalty for tobacco retailing without a license can be appealed to the City’s Hearing Officer provided for in Section 1-9.6, or, if so designated by the City Manager, to a County of Monterey Hearing Officer. Hereinafter the City’s Hearing Officer and the County of Monterey Hearing Officer shall be referred to as the “Hearing Officer.” The Hearing Officer shall be individuals who may hear the appeals, issue subpoenas, receive evidence, administer oaths, rule on questions of law and the admissibility of evidence, prepare a record of the proceedings, and issue orders with regard to an appeal.

(b)    The right to appeal is subject to the following requirements and procedures. A person served with a decision issued pursuant to Section 19-110(b) or 19-116(d) may seek an appeal by filing with the Department a written request for hearing within fourteen (14) calendar days of service of the decision. Failure to timely file a written request for hearing shall be deemed a waiver of the right to challenge the decision of the Department and a failure to exhaust administrative remedies.

(c)    The Hearing Officer shall schedule a hearing.

1.    Written notice of the time, date and location of a hearing before the Hearing Officer shall be given by personal service or by first class mail, postage prepaid, including a copy of the affidavit or certificate of mailing, to the appellant.

2.    Hearing Procedures.

i.    Requirements for Taking Testimony. In any proceeding before a Hearing Officer, oral testimony offered as evidence shall be taken only on oath or affirmation, and the Hearing Officer, his/her clerk, or other designee shall have the power to administer oaths and affirmations and to certify to official acts. Oaths of witnesses may be given individually or en masse. Witnesses shall be asked to raise their right hands and to swear or affirm that the testimony they shall give will be the truth, the whole truth, and nothing but the truth.

ii.    Continuances. The Hearing Officer may continue the hearing as determined appropriate by the Hearing Officer.

iii.    Administrative Interpretations. In conducting the hearing, the Hearing Officer shall give deference to the previously established interpretation of an ordinance provision by the Department charged with its enforcement unless that interpretation is shown to be clearly erroneous or unauthorized.

iv.    Hearing Officer Decisions. Within thirty (30) calendar days after the close of the hearing, the Hearing Officer shall issue a written decision, including a statement of the basis for the decision. The Hearing Officer’s written decision shall constitute the final administrative decision of the City.

v.    In the event a civil action is initiated to obtain enforcement of the decision of the Hearing Officer, and judgment is entered to enforce the decision, the person against whom the order of enforcement has been entered shall be liable to pay the City’s and/or its designee’s total costs of enforcement, including reasonable attorney’s fees.

(d)    The appellant’s failure to appear at the hearing on appeal shall constitute an abandonment of the review request and a failure to exhaust administrative remedies. (Ord. 3508 § 2, 2014)

Sec. 19-118 Other penalties. Revised 12/14

The remedies provided by this article are cumulative and in addition to any other remedies available at law or in equity.

(a)    Violations of this article may, in the discretion of the City Attorney, be prosecuted as infractions or misdemeanors.

(b)    Causing, permitting, aiding, abetting, or concealing a violation of any provision of this article shall constitute a violation.

(c)    Violations of this article are hereby declared to be public nuisances. (Ord. 3508 § 2, 2014)

Sec. 19-119 Stipulated fine in lieu of hearing. Revised 12/14

For a first or second alleged violation of this article within any sixty (60) month period, the Department may allow a tobacco retailer alleged to have violated this article to stipulate in writing to the penalties provided in this section in lieu of the penalties that would otherwise apply pursuant to this article and to forgo any right the tobacco retailer may have to a hearing pursuant to Section 19-117. Following the stipulation, no hearing shall be held. Stipulations shall not be confidential, shall be in writing, and shall contain the following terms plus any other noncriminal provisions established by the Department in the interests of justice:

(a)    After a first alleged violation of this article at a location:

1.    An agreement by the tobacco retailer to stop acting as a tobacco retailer for one (1) day;

2.    An administrative penalty of $1,000;

3.    An admission by the tobacco retailer that the first alleged violation of this article at the location occurred; and

4.    An agreement that the first alleged violation of this article at the location shall be considered in determining the penalty for any future violation.

(b)    After a second alleged violation of this article at a location within any sixty (60) month period:

1.    An agreement by the tobacco retailer to stop acting as a tobacco retailer for ten (10) days;

2.    An administrative penalty of $5,000;

3.    An admission by the tobacco retailer that the second alleged violation of this article at the location occurred; and

4.    An agreement by the tobacco retailer that the second alleged violation of this article at the location will be considered in determining the penalty for any future violations. (Ord. 3508 § 2, 2014)

Sec. 19-120 Implementation. Revised 12/14

If any provision of this article or the application thereof to any person or circumstance is held invalid, the remainder of this article or the application of such provision to other persons or circumstances shall not be affected thereby. (Ord. 3508 § 2, 2014)