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Agenda Item
ASR
Control 21-001160 |
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MEETING DATE: |
02/01/22 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
Sheriff-Coroner
(Approved) |
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Department contact
person(s): |
Brian Wayt (714) 647-1803 |
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Noma Crook (714) 834-6681 |
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Subject: Approve Decrease to Business
License Fees
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Resolution to Form |
Public Hearing |
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3 Votes Board Majority |
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Budgeted: No |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: $31,675
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Prior Board Action: 10/19/2021
#27, 12/3/1991 #48 |
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RECOMMENDED ACTION(S):
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1. |
Find that the proposed fees are Statutorily Exempt from the provisions of the CEQA pursuant to Section 21080(b)(8) of the Public Resources Code and Section 157273 of the CEQA Guidelines as the establishment or modification of rates, fees and charges, which are for the purpose of meeting operating expenses, including employee wage rates and fringe benefits, purchasing or leasing supplies, equipment or materials as set forth herein. |
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2. |
Conduct the public hearing. |
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3. |
Adopt a Resolution that: |
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a. |
Finds that adoption of the Resolution approving the fees is statutorily exempt from the provisions of the California Environmental Quality Act pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273 of the CEQA Guidelines as the establishment or modification of rates, fees and charges that are for the purpose of meeting operating expenses, including employee wage rates and fringe benefits, and purchasing or leasing supplies, equipment or materials. |
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b. |
Finds that the fees meet the requirements set forth in subdivision (e)(2) to Section 1 of Article XIIIC of the California Constitution, and are therefore exempt from the definition of a tax as used therein. |
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c. |
Finds that the revenue resulting from the fees established pursuant to this Resolution will not exceed the Sheriff-Coroner Department’s reasonable cost for processing business licenses. |
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d. |
Approves the proposed fee decrease set forth in the Resolution for the Sheriff-Coroner Department's processing of new and renewed business licenses for Bingo Games and for new business licenses for Dance Studio, Escort, Escort Bureau, Figure Model, Figure Model Studio and Introductory Service, effective March 1, 2022, and superseding in part Resolution No. 91-1410. |
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e. |
Authorizes the Sheriff-Coroner Department to make an annual fee adjustment effective July 1st of each year, starting in 2023, that increases the fees set forth in the Resolution, except for the fees for Bingo Games, by an amount not to exceed the annual percentage of the Los Angeles-Long Beach-Anaheim "all items" Consumer Price Index, provided that the amount does not exceed the Sheriff-Coroner Department's costs as determined by additional cost studies prepared for the fee adjustment in accordance with the policies of this Board. |
SUMMARY:
Approval of the decrease in fees for a new business license application for Dance Studio, Escort, Escort Bureau, Figure Model, Figure Model Studio and Introductory Service will reflect the Sheriff-Coroner Department’s full cost recovery for processing these licenses pursuant to Section 5-1-29 of the Orange County Codified Ordinances and for which the Sheriff is the license issuing officer pursuant to Section 5-2-1. Approval of the decrease in fees for a new and renewal license application for a Bingo Game will comply with the statutory cap of $50 per application.
BACKGROUND INFORMATION:
California Government Code Section 66018 authorizes the Board of Supervisors (Board) to establish a fee based on the administrative costs of processing business licenses.
Section 5-1-29 of the Orange County Codified Ordinances sets forth the businesses for which the County requires a license. In relevant part, this list includes Bingo Games, Figure Model Studio and Figure Models, Dance Studio and Escort, Escort Bureau and Introductory Services. For these businesses, Section 5-2-1 of the Orange County Codified Ordinance specifies that the Sheriff is the issuing officer for the license.
Following a Sheriff-Coroner Department (Sheriff) cost study conducted in 1991, on December 3, 1991, the Board approved new and revised business license fees charged to persons and organizations located in the unincorporated areas of Orange County. Previously, on October 19, 1988, by Resolution, the Board approved business license fees charged by Sheriff that excluded massage establishments and massage technicians. The revised fees for massage establishments and massage technicians were adopted by a separate Resolution on June 28, 1989.
In September 2021, a cost study was prepared by Sheriff's staff to determine the actual current administrative costs associated with processing applications for new and renewed business licenses. In addition to the $50 statutory cap for new and renewal license applications for a Bingo Game, the results of the cost study are set forth with a decrease in rates for new applications which includes Dance Studio, Escort, Escort Bureau, Figure Model, Figure Model Studio and Introductory Service as noted in the table below:
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Business/Organization |
Current Application Fee |
New Application (Reduced Fee) |
Annual Renewal |
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Bingo Game |
$125.00 |
$50.00 |
$50.00* New Reduced Fee |
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Dance Studio |
$504.00 |
$436.00 |
$301.00** |
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Escort |
$504.00 |
$436.00 |
$301.00** |
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Escort Bureau |
$504.00 |
$436.00 |
$301.00 |
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Figure Model |
$504.00 |
$436.00 |
$301.00 |
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Figure Model Studio |
$504.00 |
$436.00 |
$301.00 |
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Introductory Service |
$504.00 |
$436.00 |
$301.00 |
* Under Penal Code Section 326.5, subdivision (l)(1), the fee for a bingo game initial license or renewal license shall not exceed $50. If a license is denied for a bingo game, 50 percent of the fee will be refunded to the applicant as required by Penal Code Section 326.5, subdivision (l)(1). Current annual renewal is $118.00 and us being reduced to $50.00.
** For annual renewals for Dance Studio, Escort, Escort Bureau, Figure Model, Figure Model Studio and Introductory Service the fee will remain $301 as set forth in Resolution No. 91-1410., as the Sheriff is not proposing any fee increases at this time.
A Notice of Public Hearing has been published to comply with Government Code Section 66018 that requires a local agency to hold a public hearing when new fees are adopted or existing fees are increased. The proposed fees and supporting cost study were reviewed by the Auditor-Controller.
On October 19, 2021, Sheriff brought the proposed fees for processing new and renewed business licenses before the Board. It was recommended at that time, with the fee increase in revenue not making a significant difference and with COVID-19 still ongoing, that Sheriff bring this item back at a later date for approval of fee decreases and authorization for an annual Consumer Price Index increase.
Sheriff now requests approval of the decrease in new and renewal application fees for Bingo Game and the decrease in new application fees for Dance Studio, Escort, Escort Bureau, Figure Model, Figure Model Studio and Introductory Service effective March 1, 2022, which would allow Sheriff 30 days to notify and seek adoption by the city councils of each of the cities that contract with Sheriff for law enforcement services and which require licensing of the same businesses. The fees adopted by the Board are effective for business in the unincorporated area. The decrease in the fees is due to the efficiencies created by the Sheriff in processing business license applications.
Sheriff requests authorization of an annual fee adjustment effective July 1st of each year, starting in 2023, that increases the fee by an amount not to exceed the annual percentage of the Los Angeles-Long Beach-Anaheim “all items” Consumer Price Index, provided that the amount does not exceed the actual costs to the Sheriff-Coroner Department as determined by additional cost studies prepared for the fee adjustment. This will allow Sheriff to have full cost recovery for the licensing for these businesses. Sheriff will return to the Board if at any time, the fee study indicates that the actual costs have reduced below the current fee to a level below the revenues generated from the fee charged at that time. Any Consumer Price Index increase will not apply to the new and renewal application fees for Bingo Games, which amounts are capped by statute.
Compliance with Proposition 26: The fees do not fall within the definition of a tax under Proposition 26 because they are exempted by California Constitution Article XIIIC, Section 1, Subdivision (e)(2). Subdivision (e)(2) exempts from the definition of a tax, “a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” This exemption applies because the fee amounts are limited to no more than what is necessary for the Sheriff to recover the reasonable costs of processing the business licenses.
Compliance with CEQA: The adoption of the Resolution approving the fees is statutorily exempt from the provisions of the California Environmental Quality Act pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273 of the CEQA Guidelines as the establishment or modification of rates, fees and charges that are for the purpose of meeting operating expenses, including employee wage rates and fringe benefits and purchasing or leasing supplies, equipment or materials.
FINANCIAL IMPACT:
The proposed fees will result in full cost recovery for processing these business licenses, except for bingo game licenses, which fees are capped by statute. There will be a zero dollar overall budget impact and will be part of the budgeting process for future fiscal years for Budget Control 060.
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Draft Resolution
Attachment B - Government Code Section 66018
Attachment C - California Constitution Article XIIIC, Section 1
Attachment D - Orange County Codified Ordinances, Sections 5-1-29 and 5-2-1
Attachment E - Fee Checklist and Cost Study
Attachment F - Notice of Public Hearing
Attachment G - Public Resources Code
Section 21080
Attachment H - Penal Code Section 326.5
Attachment I - Board Resolution 91-1410