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HomeMy WebLinkAbout75A - MOBILE VEHICLE VENDING FEES REQUEST FOR COUNCIL ACTION ~ ~~~ ~ CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: NOVEMBER 7, 2005 TITLE: PUBLIC HEARING - RESOLUTION FOR MOBILE VEHICLE VENDING FEES APPROVED o As Recommended o As Amended o Ordinance on 1 sl Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For ()JZt~(~ CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Adopt a resolution approving a permit fee for mobile vehicle vending and adding this fee to the City's miscellaneous fee schedule. DISCUSSION At its meeting of October 17, 2005, the City Council adopted an ordinance that established regulations pertaining to the operation of mobile vending vehicles. The lengthy deliberations that lead up the adoption of the ordinance contemplated that certain fees would later be considered in an effort to cover the City's costs of issuing permits, conducting inspections and administering the program. Based upon an analysis of the total costs of administering the program, a copy of which is available from the Clerk of the Council, an annual fee of $405 per permit is recommended. This fee is based on conservative cost estimates and would serve to fund two new full-time positions in the Community Preservation Division: one full-time inspector position and one full-time clerical position. The responsibility of these new positions will be to administer the mobile vehicle vendor program under the general direction of the Community Preservation Manager. Specific tasks are estimated to include establishing and implementing application procedures, issuing permits, conducting proactive inspections, responding to vendor and community questions and concerns. The proposed fee has been developed in an effort to properly administer the program and yet keep it affordable. The actual costs will be monitored over the first year and future adjustments may be recommended accordingly. The applicability of enacting similar fees for ice cream vendors will also be studied and recommendations forwarded as may be appropriate. 75A-1 Mobile Vehicle Vending Fees Resolution November 7, 2005 Page 2 Staff recommends that the City Council adopt a resolution establishing a fee of $405 per mobile vending vehicle permit to ensure adequate administration and monitoring of the program. FISCAL IMPACT The program is anticipated to be self-funded by the new per vending vehicle permit fee. APPROVED AS TO FUNDS AND ACCOUNTS: . Trevino ec tive Director ning & Building Agency '{~~~'''I'. ) ~ ~:-:~> Francisco Gutierrez Executive Director ~ Finance & Management ~rvices Agency BD:rb Rb\reports\Vehicle Vending Fees Reso.cc 75A-2 bk:11/1/05 RESOLUTION NO. 2005-106 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING AN OWNER'S PERMIT FEE FOR VEHICLE VENDING AND ADDING THIS FEE TO THE UNIFORM SCHEDULE OF MISCELLANEOUS FEES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby, finds, determines and declares as follows: A. Section 36-59 of the Santa Ana Municipal Code (Code), adopted this day by Ordinance No. NS-2701, provides that the City Council may establish, by resolution, an annual fee for the permit to own a vending vehicle (which does not apply to vehicles vending only ice cream). B. The Council finds that as to this fee: 1. These fees are to be used exclusively for ensuring that vehicle vendors who pay this fee act in accordance with the City's regulatory scheme as set forth in Chapter 36 of the Code. 2. There is a reasonable relationship between the use of these fees and the vendors on which the fee is imposed, in that unregulated vehicle vending creates an impact on the City, and the fees of the sort charged by the City are an appropriate response to this impact in that they will be used for employ dedicated staff to ensure that the vehicle vendors who pay this fee act in accordance with the City's regulatory scheme. It is also to the benefit of those paying the fee, i.e., vehicle vendors, to have dedicated City staff ensure that their competitors comply with the City's regulatory scheme. 3. There is a reasonable relationship between the impacts the City anticipates that vending vehicles will cause, and the owners on which the fee is imposed because the fee is based upon the cost of ensuring that vehicle vendors who pay this fee act in accordance with the City's regulatory scheme, and the Council finds in adopting this fee that the more owner's permits the City issues to vehicle vendors, the more impacts there are on City resources. 4. These increased fees will take effect immediately, but any person who pays in the fee and receives a permit in the last two months of 2005 shall be deemed to have paid the annual permit fee for 2006 as well. 75A-3 5. The fee for this service would not duplicate any existing fee, charge, levy or other toll currently collected by the City or any public agency, and would be distinct and separate from any current or future fee imposed by the County of Orange on various vehicle vendors for health inspections. 6. The moneys collected by this fee would be placed into a fund that would be used only to administer and operate a program to ensure that vehicle vendors act in accordance with the City's regulatory scheme. No moneys from this fund would go to the city's general fund. C. Based upon the City's study the annual cost of administering and operating a program to ensure that vehicle vendors act in accordance with the City's regulatory scheme exceeds $177,000 in direct costs (two additional staff dedicated to the program), equipment costs and indirect costs. This estimate does not include other staff who will be redirected from their current responsibilities during the initial year the new regulatory scheme is in place. To be conservative in ensuring that the fee does not exceed the City's cost to ensure that vehicle vendors act in accordance with the City's regulatory scheme, this total cost has been discounted by 25% to approximately $132,800. Given the current number of vending vehicles licensed in the City (328), the annual fee to be imposed comes to approximately $405.00 per vehicle. A study confirming these facts in greater detail is on file with the Clerk of the Council and is incorporated herein by the reference as though fully set forth. D. Based upon all the testimony, reports and other evidence submitted on this matter, this city council makes the above-specified findings. Section 2: An annual $405.00 per permit fee is hereby established for each person applying for a vehicle vendor's owners permit. This annual fee will be collected beginning the effective date of this Resolution, but for any person from whom the fee is collected in 2005, that person shall be treated the same as a person who pays the fee on January 1, 2006. Section 3: Without further action of the City Council this fee shall be incorporated into the City's Miscellaneous Fee Schedule. Section 4: If any charge, fee, service charge, section, subsection, sentence, clause, phrase or word of this Resolution is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have passed and adopted this Resolution, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. Section 5: This Resolution shall take effect simultaneously with Ordinance No. NS-2701, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. 75A-4 ADOPTED this _ day of ,2005. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Benjamin Kaufman Chief Assistant City Attorney AYES: Councilmembers: NOES: Council members: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of Council, do hereby attest to and certify the attached Resolution No. 2005-106 to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of Council City of Santa Ana 75A-5 75A-6