Agenda Report
Fullerton City Council
MEETING DATE: FEBRUARY 6, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: LUCINDA WILLIAMS, CITY CLERK
PREPARED BY: LUCINDA WILLIAMS, CITY CLERK
SUBJECT: 2024 SAFE AND SANE FIREWORKS SALES
SUMMARY
Fullerton voters reinstated the sale, possession and discharge of safe and sane fireworks in Fullerton on November 6, 2012 and re-affirmed the practice on November 3, 2020. This report presents the 2023 Safe and Sane Fireworks Sales Annual Report and seeks approval of the 2024 fireworks sales timeline and direction regarding fees.
PROPOSED MOTION
1. Receive and file 2023 Safe and Sane Fireworks Sales Annual Report.
2. Confirm timeline for 2024 fireworks sales application process.
3. Provide direction for 2024 lottery application and sales permit fees.
4. Direct staff to recommend future lottery and sales permit fee adjustments with the annual budget process beginning with the 2024-25 budget.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Adjust the 2024 fireworks lottery application and sales permit fees to recoup some, all or none of the cost increases since the last fee update Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
The City Manager recommends the proposed action. The proposed action phases in the fee increases over multiple years to reduce the impact.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability.
Public Safety.
FISCAL IMPACT
The City will receive revenue from both the fireworks lottery and sales permit processes determined by the number of applications received and any adjustments City Council makes to the 2024 fees. The City collected $756 in lottery application fees and $34,890 in permit fees in Fiscal Year 2023-24.
City costs have increased since the last fee update in 2020. Not increasing fees to capture current costs for service would result in an approximately $34,900 revenue loss. This report includes options for adjusting fees in the Background and Discussion section.
BACKGROUND AND DISCUSSION
Fullerton voters approved Measure X, which adopted City Ordinance No. 3183 and reinstated the legal sale, possession and discharge of safe and sane fireworks on November 6, 2012. Voters re-affirmed the sale of safe and sane fireworks on November 3, 2020 and rejected Measure U which proposed banning the sale. possession and discharge of safe and sane fireworks. 2023 marked the eleventh year of sales, possession and discharge of safe and sane fireworks under the reinstated rules and regulations.
City Council adopted Resolution No. 2022-018 in 2022 which amended the fireworks sales lottery drawing process to reserve five sales permits for Youth Sports Partner League organizations and the remaining ten sales permits for all other qualified lottery participants.
Process
The City Clerk’s Office accepts fireworks lottery applications during the month of March. The City then holds two lottery drawings during the City Council meeting on the third Tuesday in April to select groups to advance to the sales permit phase. The City conducts one lottery drawing for all qualified Youth Sports Partner League applicants to select five Youth Sports Partner League organizations to advance to the sales permit process and five alternates for the Youth Sports Partner League permits. The City then conducts a separate lottery drawing for all other qualified applicants to select ten organizations to advance to the sales permit process and five alternates for the other organization permits.
Current practice allows one representative group per educational institution (elementary through university level) as designated by the school principal, dean or other head of the institution to submit a lottery application. The representative group may be a group from within the institution or a booster club operating outside of the school in support of an official school program even if the outside organization operates under a separate tax identification number.
Timeline
Resolution No. 2022-018 opens the lottery application filing period on the first business day in March and closes on the last business day in that same month. The resolution also established the dates and times for fireworks sales and discharge.
City Council traditionally conducts the lottery drawing during the public portion of the Closed Session of the second City Council meeting in April.
Staff proposes the following timeline for the 2024 safe and sane fireworks sales:
February 6, 2024
City Council approves 2024 timeline and process
February 20, 2024
City Council adopts new fees (pending direction)
March 1 – 30, 2024
Lottery applications accepted
April 16, 2024
Lottery drawing at City Council meeting
April 17 – June 6, 2024
Fire Marshal accepts permit applications
June 7 –30, 2024
Permits processed / Stands drop
July 1 – 4, 2024
Fireworks sales
July 5, 2024
Stock removal
July 13, 2024
Stand removal by this date
September 1, 2024
Permittee financial reports due
Fees
City Council approved updated fees to reflect the cost of service for processing fireworks sales permits, outreach and enforcement in June 2020. The lottery application fee remained at $28 and the permit fee increased to $2,326.
The overall cost for services has roughly doubled since 2020. Attachment 4 details the 2024 actual costs for services included with the fireworks lottery application and sales permit.
Lottery Application: City Council set the lottery application price at $28 in 2018. Labor costs have increased since that time and staff recommends increasing the lottery application fee to $30 to capture the actual costs to process the lottery application. Not increasing the application fee to capture current costs would result in an estimated $50 - $70 loss of revenue, depending on the number of applications submitted.
Sales Permit: City Council increased the Sales Permit fee to $2326 per permit in 2020. Labor and permit costs have increased since that time, bringing the amount to fully recoup permit costs to $4649 per permit. Not increasing the permit fee to reflect current service levels would result in a $34,841 loss.
The City has modified the stand inspection process since 2020. The Fire Department now conducts all fireworks stand inspections (duties previously shared between the Fire Department and Code Enforcement), inspecting each stand twice daily for four days at $109 per inspection, which has increased the cost to process permits. The attached 2024 fee calculations reflect this new process in addition to increased labor costs.
Timing. Departments traditionally update fees with the annual budget adoption, including the Fire Department permit fee included in the fireworks permit cost calculation. Staff recommends City Council consider fees for the fireworks lottery application and sales permit at the same time it considers other fees during the annual budget process, rather than with the February fireworks program update, to ensure consistency with fee increases in other departments.
Modifications for 2024
Staff recommendations adjusting permit fees to capture increased costs.
Attachments:
Attachment 1 – PowerPoint Presentation
Attachment 2 – Ordinance No. 3183
Attachment 3 – Resolution No. 2022-018
Attachment 4 – 2023 Fireworks Sales Annual Report
Attachment 5 – Fireworks Lottery and Sales Permit Fee Calculations cc: City Manager Eric J. Levitt
2024 Fireworks Sales
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