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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
DATE: MARCH 25, 2025
FROM: PLANNING AND BUILDING DEPARTMENT
SUBJECT: AMENDMENTS TO THE ANAHEIM MUNICIPAL CODE TO (1)
CLARIFY THE BUSINESS LICENSE APPLICATION PROCESS
AND DISCLOSURE REQUIREMENTS FOR CONTRACTORS
AND SUBCONTRACTORS (SECTION 3.04.140 (LICENSE
APPLICATION)) AND (2) AMEND THE FEE DEFERRAL
PROGRAM RELATED TO THE COLLECTION OF INTEREST
ON DESIGNATED RESIDENTIAL DEVELOPMENT
PROJECTS (SECTION 17.38.060 (INTEREST))
(INTRODUCTION)
ATTACHMENT (Y/N): YES ITEM # 25
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Ordinance (Introduction):
1) Amend Section 3.04.140 (License Application) of the Anaheim Municipal Code to clarify the business license application process and disclosure requirements for contractors and subcontractors;
2) Amend Section 17.38.060 (Interest) of the Anaheim Municipal Code related to the collection of interest on designated residential development projects for consistency with state law; and
3) Determine that the proposed amendments are not subject to the California Environmental Quality Act (CEQA) Guidelines under Section 15060(c)(2), 15060(c)(3), and 15378 of Title 14 of the California Code of Regulations.
DISCUSSION:
Contractors and Subcontractors Licensing Amendments
In November 2023, the City Council adopted Ordinance No. 6562 which amended the business license application process for contractors and subcontractors, codified in Section 3.04.140, by moving the reporting requirement timing from prior to final inspection to prior to building permit issuance. Ordinance No. 6562 also expanded the scope of information disclosed by Contractors to include certain final determinations for state or federal labor code violations on projects involving 20 or more residential dwelling units or 20,000 or more square feet of commercial or industrial development.
Clarifying Amendments – AMC 3.04.140 and 17.38.060 (Introduction) March 25, 2025
The following amendments are proposed to facilitate efficient implementation while continuing to provide the desired disclosures:
Project Scope for Labor Code Violations Disclosure Compliance. Clarity is provided on which projects are subject to the expanded scope of disclosure for labor code violations, identifying both new construction and the remodel or renovation for projects involving 20 or more residential dwelling units or 20,000 or more square feet of commercial or industrial development where a minimum valuation is established at $1,000,000 for applicable remodeling or renovation projects; (collectively referred to herein as “threshold projects”);
Timing for Licensing Reporting Compliance. Clarity is provided to retain the requirement for contractors to report contractors/subcontractors license information and labor violations prior to building permit issuance for threshold projects while moving the contractor/subcontractor license information reporting requirement for non-threshold projects back to prior to final inspection as was in place prior to November 2023.
Fee Deferral Program Amendment
As a separate matter, SB937, effective January 1, 2025, requires a minor update to the City’s existing impact fee deferral program, codified in Section 17.38.060, to waive interest on designated residential development projects.
The fee deferral program, originally enacted September 2009, allows for the deferral of the time for payment and collection of certain development fees to stimulate and encourage the construction of new residential and non-residential developments. The current program does not charge interest when amounts deferred are $1,000,000 or less, however, does collect interest on amounts deferred of more than $1,000,000 for new residential and non-residential developments.
SB937 disallows the collection of interest under a contract to defer impact fees on residential development projects that dedicate 100% of units to lower income households, qualify for a density bonus, include 10 or few units, or otherwise provide affordable housing authorized elsewhere in State law.
The following amendment is proposed for consistency with State law:
Interest Collection. Clarify that although the collection of interest is authorized on amounts deferred of more than $1,000,000, it will not be charged when prohibited by State law.
Environmental Impact Analysis: Staff recommends that the City Council find that the proposed ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines contained in Title 14 of the California Code of Regulations because the clarifying amendments will not result in a direct or reasonably foreseeable indirect physical change in the environment and are not a “project,” as that Clarifying Amendments – AMC 3.04.140 and 17.38.060 (Introduction) March 25, 2025
term is defined in Section 15378 of the State CEQA Guidelines. Therefore, the activity is not subject to CEQA.
IMPACT ON BUDGET:
The costs to process and implement this Code amendment are included in the Planning and Building Department’s FY 2024/25 General Fund budget.
Respectfully submitted,
Heather Allen
Acting Planning and Building Director
Attachments:
1. Ordinance
2. Ordinance (Redline)