Agenda, second session — San Bruno City Council, July 28, 2026 (part 2 of 2)

Ballot Question
The following ballot question is proposed for submission to the voters at the November 3, 2026 General Election. Approval of the measure requires a simple majority of votes cast. A majority vote of the City Council is required to place this measure on the ballot.

Shall the City of San Bruno Safe and Sane Fireworks
Ordinance be repealed to prohibit the sale, use, and
discharge of safe and sane fireworks in the City of San Bruno?
Yes
_______
No
Ballot Arguments and Impartial Analysis
In connection with the measure, the City Council must decide whether it will authorize arguments in favor or against the measure and rebuttal arguments to be included in the ballot materials.

Pursuant to Elections Code Section 9282, any councilmember, registered voter, or bona fide association of citizens may file a written argument for or against a city measure, which must be included in the voter information guide. If more than one argument is submitted for or against any measure, the City Clerk must select only one argument in favor and one argument against for distribution, using the following order of priority:

1. The City Council, or any member of members of the council authorized by the City Council,

2. Bona fide sponsor or proponent of the measure,

3. Bona fide associations of citizens, and

4. Individual voters who are eligible to vote on the measure.

The proposed resolution authorizes City Councilmembers to author arguments in favor of or opposed to the ballot measure. In the event that more than one argument is submitted in favor of or opposed to the ballot measure, the Councilmembers’ argument will have priority and will be included in the voter information guide. If the City Council authorizes three or more members of the City Council to author an argument, then the proposed argument must be submitted to the City Council for approval in a public meeting of the City Council. In the event that the City Council does not authorize any authors, arguments submitted by a registered voter, or bona fide association of citizens will be chosen as specified in the Election Code.

The proposed resolution also adopts Elections Code Section 9285(a) to allow rebuttal arguments. Rebuttal arguments are not permitted if the City Council does not adopt Elections Code Section 9285(a).

The deadline for submission of written arguments to the City Clerk’s Office is Tuesday, August 11, 2026 by 5:00 p.m. The deadline for submission of rebuttal arguments to the City Clerk’s Office is Tuesday, August 18, 2026 by 5:00 p.m.
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Honorable Mayor and Members of the City Council
July 28, 2026

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The City Attorney will prepare an impartial analysis of the Measure, not to exceed 500 words, within ten days of adoption of the resolution.

FISCAL IMPACT:

Adding a ballot measure to the November 3, 2026 General Election ballot is estimated to cost approximately $13,000–$18,000, depending on the total number of measures on the ballot. The base cost of the Mayoral and City Council election is estimated at $118,000–$141,600, managed by San Mateo County and reimbursed by the City. The City may also incur additional nominal translation and legal costs
ENVIRONMENTAL IMPACT:

The action is not a project subject to CEQA. City Council’s action is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required.

RECOMMENDATION:

Adopt a Resolution Submitting to the Voters at the November 3, 2026 General Election a Measure to Prohibit the Sale and Use of “Safe and Sane” Fireworks in the City of San Bruno.

If the City Council wants to authorize the City Council, or any members of the City Council to author arguments authorized by the City Council and to allow rebuttal arguments for the measure, adopt the resolution entitled: “A Resolution of the City Council of the City of San Bruno Setting Priorities For Filing Written Arguments and Authorizing Rebuttals for a City Measure that Prohibits the Sale and Use of Safe and Sane Fireworks in the City of San Bruno.” ALTERNATIVES:

1. Direct staff to make changes to the draft ballot question prior to adoption of the resolution.

2. Do not proceed with placing a fireworks measure on the November 3, 2026 General Election ballot.

ATTACHMENTS:

1. Resolution Submitting Measure to Voters

2. Resolution of the City Council of the City of San Bruno Setting Priorities for Filing Written Arguments and Authorizing Rebuttals for a City Measure that Prohibits the Sale and Use of Safe and Sane Fireworks in the City of San Bruno

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1 RESOLUTION NO. 2026 - ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO SUBMITTING TO THE VOTERS AT THE NOVEMBER 3, 2026 GENERAL MUNICIPAL

ELECTION A MEASURE THAT PROPOSES ADOPTION OF AN ORDINANCE TO PROHIBIT

THE SALE, USE, OR DISCHARGE OF SAFE AND SANE FIREWORKS, REQUESTING THAT

SUCH ELECTION BE CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION

HELD ON THAT DATE, TAKING CERTAIN OTHER ACTIONS, AND FINDING SUCH ACTION

EXEMPT FROM CEQA
WHEREAS, by prior resolution, the City Council called a general municipal election (the “Election”) for November 3, 2026, to be consolidated with the statewide general election to be held on that same date;
WHEREAS, in 2005, the voters approved a “Safe and Sane Fireworks Ordinance,” codified as Chapter 6.50 of the San Bruno Municipal Code, to allow the continued sale, use, and discharge of safe and sane fireworks;
WHEREAS, the State Fireworks Law, being California Health and Safety Code sections 12500 through 12728, permits each city to regulate or prohibit the sale, use or discharge of “safe and sane fireworks” within its jurisdiction;
WHEREAS, San Bruno and Pacifica are the only cities in San Mateo County that permit the sale of "Safe and Sane" fireworks,
WHEREAS, the State Fire Marshal released updated Fire Hazard Severity Zone maps in 2025, and much of San Bruno is now designated as a high fire hazard severity zone, heightening the risk associated with the discharge of consumer fireworks; WHEREAS, the City Council has determined that the sale, use and discharge of safe and sane fireworks presents a risk of fires and the generation of smoke and air emissions, noise, and litter, which may adversely affect the environment; WHEREAS, the City Council has determined that the sale, use, and discharge of safe and sane fireworks presents a risk of harm to persons and property; and WHEREAS, in order to more fully protect the health and safety of persons and property within the City of San Bruno, the City Council desires to have the matter of an ordinance that would prohibit the sale, use, and discharge of safe and sane fireworks be presented to the voters on the November 3, 2026 ballot.

NOW THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF SAN BRUNO, CALIFORNIA, AS FOLLOWS:

1. Pursuant to Election Code Sections 9222 and 10201, the City Council directs that the ordinance attached hereto as Exhibit “A” and incorporated herein by reference (the “Measure”) be submitted to the qualified voters of the City of San Bruno at the Election.

2. The question shall appear on the ballot as follows:
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ATTACHMENT 1
2 Shall the City of San Bruno Safe and Sane Fireworks Ordinance be repealed to prohibit the sale, use, and discharge of safe and sane fireworks in the City of San Bruno?
Yes
_______
No

3. The Measure shall only take effect if at least a majority of those voting on the question vote in favor of it at the Election.

4. The full text of the Measure, attached to this Resolution as Exhibit A, being the proposed ordinance repealing the City of San Bruno Safe and Sane Fireworks Ordinance, shall be completely printed in the voter pamphlet.

5. The City Council hereby directs the City Clerk to transmit a copy of the Measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the Measure, not to exceed 500 words in length, showing the effect of the Measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk no later than August 18, 2026 by 5:00 p.m.

6. Pursuant to Elections Code Section 10403, the City Council requests that the San Mateo County Board of Supervisors consent to consolidation of the election for the Measure with the general election to be conducted by the San Mateo County Registrar of voters on November 3, 2026. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating a special election consolidated with a statewide election. The City will bear all costs customarily charged by the County to a city in connection with a ballot question submitted at a municipal election that is consolidated with an election conducted by the County.

7. The City Council directs the City Clerk to file a certified copy of this Resolution with the Registrar of Voters of San Mateo County.

8. Notice of the time and place of holding of the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election in the time, form, and manner as required by law.

9. The Board of Supervisors is authorized to canvass the returns of the Election pursuant to Section 10411 of the Elections Code.

10. Pursuant to Section 10002 of the Elections Code, the Board of Supervisors is requested to permit the County Clerk to render all services specified by Section 10418 of the Elections Code relating to the election, for which services the City agrees to reimburse the County, in accordance with current County pro-rations and allocation procedures.

11. The City Clerk shall file a certified copy of this Resolution with the Clerk of the County Board of Supervisors.

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3 12. The City Clerk is hereby authorized to do all things necessary and proper to implement the provisions of this Resolution.

13. This Measure is exempt from the California Environmental Quality Act pursuant to Section 15061(b)(3) because it can be seen with certainty that there is no possibility that this ballot measure will have a significant effect on the environment. To the extent this Measure results in changes to the sale, use or discharge of safe and sane fireworks in the City, such effects would not result in a substantial adverse change in the environment, and may reduce fire risk, air emissions, noise, and litter associated with safe and sane fireworks.
---oOo---
I hereby certify that foregoing Resolution No. 2026 - ___ was introduced and adopted by the San Bruno City Council at a regular meeting on July 28, 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
_______________________________
Lupita Huerta, City Clerk

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4 EXHIBIT A
Proposed Ordinance

AN ORDINANCE OF THE PEOPLE OF THE CITY OF SAN BRUNO, CALIFORNIA TO REPEAL THE SAFE AND SANE FIREWORKS ORDINANCE CODIFIED IN CHAPTER 6.50

OF THE SAN BRUNO MUNICIPAL CODE AND REPLACING SUCH ORDINANCE WITH A

BAN ON THE SALE, USE, OR DISCHARGE OF SAFE AND SANE FIREWORKS IN THE

CITY OF SAN BRUNO
THE PEOPLE OF CITY OF SAN BRUNO ORDAIN AS FOLLOWS:

SECTION 1. The purpose of this Ordinance is to prohibit the sale, use or discharge of safe and sane fireworks in the City of San Bruno by repealing the Safe and Sane Fireworks Ordinance, an initiative measure adopted by the voters in 2005 to allow the continued sale, use, or discharge of safe and sane fireworks in the City of San Bruno, and replacing such ordinance with a ban on the sale, use, or discharge of safe and sane fireworks in the City of San Bruno.

SECTION 2. Chapter 6.50 of the San Bruno Municipal Code is hereby amended and restated in its entirety, to read as follows:
“Section 6.50.010. Sale, use, and discharge of safe and sane fireworks prohibited. The sale, use, or discharge of safe and sane fireworks is prohibited. The term “safe and sane fireworks” shall have the meaning ascribed to it in Section 12529 of the California Health and Safety Code, or such other law as amended from time to time.” SECTION 3. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provisions or application, and to this end the provision of this Ordinance are declared to be severable.

SECTION 4. This ordinance shall take effect 10 days after the City Council declares the results of the vote at the November 3, 2026, election.

Approved by the People of the City of San Bruno at the General Municipal Election Held on November 3, 2026.
_______________________________
Rico E. Medina
Mayor
ATTEST:
________________________________
City Clerk

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1 RESOLUTION NO. 2026 - ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO SETTING

PRIORITIES FOR FILING WRITTEN ARGUMENTS AND AUTHORIZING REBUTTALS FOR

A CITY MEASURE THAT PROHIBITS THE SALE AND USE OF SAFE AND SANE

FIREWORKS IN THE CITY OF SAN BRUNO
WHEREAS, by prior resolution, the City Council called a general municipal election for November 3, 2026 (the “Election”), to be consolidated with the statewide general election to be held on that same date; and
WHEREAS, by prior resolution, the City Council submitted to the voters at the Election an ordinance that would prohibit the sale of safe and sane fireworks in the City of San Bruno (the “Measure”).

NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of San Bruno, California, as follows:

SECTION 1. The City Council authorizes
__________________________(Council Member in Favor/Against) __________________________(Council Member in Favor/Against) __________________________(Council Member in Favor/Against) __________________________(Council Member in Favor/Against) __________________________(Council Member in Favor/Against) to file a written argument in favor of or against the Measure as specified above, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California and to change the argument until and including the date fixed by the City Clerk after which no arguments for or against the Measure may be submitted to the City Clerk. If it is proposed that three or more members of the City Council will author an argument, then the proposed argument shall be submitted to the City Council for approval in a public meeting of the City Council.

SECTION 2. Pursuant to Section 9285 of the California Elections Code of the State of California, when the City Clerk has selected the arguments for and against the Measure that will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the Measure to the author(s) of the argument against, and copies of the argument against to the author(s) of the argument in favor. The author(s), or a majority of the authors, may prepare and submit rebuttal arguments not exceeding 250 words or may authorize, in writing, others to submit a rebuttal argument. The rebuttal arguments shall be filed with the City Clerk, accompanied by the printed name(s) and signature(s) of the person(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing direct arguments. Rebuttal arguments shall not be signed by more than 5 persons.

Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument that it seeks to rebut. The provisions of this Section 2 shall apply only to the Election concerning the Measure set forth in this Resolution and shall then be repealed.
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ATTACHMENT 2
2 ---oOo---
I hereby certify that foregoing Resolution No. 2026 – ___ was introduced and adopted by the San Bruno City Council at a regular meeting on July 28, 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
_________________________________
Lupita Huerta, City Clerk

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 28, 2026
TO: Honorable Mayor and Members of the City Council
FROM:

PREPARED BY:

SUBJECT:

Alex D. McIntyre, City Manager
Joseph D. Toney, Assistant City Manager
Consider Adoption of a Resolution Submitting to the Voters at the November 3, 2026 General Municipal Election, a Measure to Modernize and Simplify the Business License Tax, Requesting that Such Election be Consolidated with the Statewide General Election Held on that Date and Taking Certain Other Actions; and Adopt a Resolution Setting Priorities for Filing Written Arguments and Authorizing Rebuttals for a City Measure that Modernizes Business License Tax
BACKGROUND:

The City of San Bruno’s Business License Tax (BLT) is levied annually on businesses operating within the incorporated area of the City pursuant to Chapter 3.16 of the San Bruno Municipal Code. The current rate schedule was last comprehensively updated in 1999 and has remained largely unchanged for more than 25 years. The current structure is regressive, the effective tax rate per dollar of gross receipts declines significantly as a business grows and does not distinguish between business types that may have materially different revenue profiles, margins, or demands on City infrastructure.

The City Council’s Adopted Budget Principles promote sound financial management and long- term stability. In FY 2025–26, the City Council appointed a Revenue Subcommittee to evaluate the City’s revenue options and identify viable ballot measure candidates. The Subcommittee, supported by the City Manager’s Office, City Attorney’s Office, and Finance Division, reviewed a comprehensive range of potential revenue tools before identifying a Business License Tax modernization measure as the preferred approach.

At the June 23, 2026 Study Session on potential November 2026 ballot measures, the City Council received a presentation on two revenue measure options, a commercial parcel tax and a Business License Tax modernization measure, and directed staff to proceed with a BLT measure using a business-category-based rate structure (referred to as “Model 2”). Staff noted that additional analysis would be needed to refine the rate structure and develop complete revenue projections by business category.

On June 30, 2026, staff met with the Revenue Subcommittee to review detailed revenue modeling prepared by the City’s consultant, HdL Companies. The Subcommittee reviewed four rate structure options and recommended a revised approach that it characterized as a more moderate and equitable model. Staff presented the Subcommittee’s findings and recommended rate structure to the City Council at the July 14, 2026 Study Session. The City Council provided direction to proceed with the Subcommittee’s recommended rate structure and directed staff to 174 of 245
Item 8c.

Honorable Mayor and Members of the City Council
July 28, 2026

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meet with the Subcommittee for a final review before returning at the July 28, 2026 Regular Meeting with a resolution and ordinance to place the measure on the November 3, 2026 ballot.

The Subcommittee met again on July 20, 2026, and affirmed the recommended rate structure as is and without any additional modifications. The proposed rate structure is the recommendation of the Subcommittee and as presented at the July 14, 2026 Study Session.

DISCUSSION:

Proposed Rate Structure
The proposed Business License Tax modernization measure would replace the current Section

3.16.010 general rate schedule with a five-category rate structure based on both gross receipts and business type. All businesses with annual gross receipts up to $75,000 would pay a flat base tax of $75.00. Above that threshold, a per-$1,000 rate would apply based on the following five business categories:

Business Category Rate per $1,000 of Gross
Receipts (above $75,000)
Flat Base Tax (up to $75,000
gross receipts)
Contractor $2.00 $75.00
General Retail /
Admin. HQ
$1.00 $75.00
Professional &
Advanced
$2.00 $75.00
Property Rental $3.00 $75.00
Services / Other $1.50 $75.00
The five business categories are defined as follows:
•Contractors - Construction, repair, plumbing, HVAC, builders, and similar trades. •General Retail / Administrative HQ — Retailers, restaurants, general businesses, and corporate administrative headquarters.
•Professional & Advanced — Law, medicine, consulting, R&D, and other licensed or credentialed professions.
•Property Rental - Commercial leasing, residential rental, hotels, and short-term rentals. •Services / Other - Salons, landscaping, personal services, and any business not fitting another category.

Two sections of Chapter 3.16 are explicitly excluded from this measure and would remain unchanged: Section 3.16.080 (Gambling Clubs) and Section 3.16.180 (Airport Parking Facilities), which are governed by existing specialized rate schedules.

The proposed rate structure is estimated to generate approximately $6.9 million in total annual BLT revenue, representing approximately $4.2 million in net new annual General Fund revenue above the current $2.7 million baseline. Revenue will be deposited into the General Fund for use on any lawful municipal purpose, including public safety, streets, parks, and infrastructure.

The proposed update does not negate nor preclude any existing or future specific agreements.

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With the modernizing and elimination of the regressive nature of the existing BLT structure, over 70% of businesses will experience a $100 or less net financial impact on their annual license. In order to try to illustrate the change from the old rate to the new rate, the chart below shows sample tiers of gross receipts and the accompanying BLT estimated tax amount for each business category.

Classification $100k $500k $1M $10M
General / Retail
($1.00 per $1,000) $ 100 $ 500 $ 1,000 $ 10,000 Contractor
($2.00 per $1,000) 125 925 1,925 19,925 Professional
($2.00 per $1,000) 125 925 1,925 19,925 Property Rental
($3.00 per $1,000) 150 1,350 2,850 29,850 Service
($1.50 per $1,000) 113 713 1,463 14,963 Old Rate General Business $ 100 $ 530 $ 930 $ 4,780 New R ates
Gross Receipts and Estimated BLT Examples
Why Voter Approval Is Required
Under Article XIII C of the California Constitution (Proposition 218, 1996, as amended by Proposition 26, 2010), any increase in a local tax requires voter approval. Because the Business License Tax is a general tax, its proceeds deposited into the General Fund for unrestricted use, a revised rate schedule requires approval by a simple majority of voters (more than 50%).

Ballot Question
The following ballot question is proposed for submission to the voters at the November 3, 2026 General Election. Approval of the measure requires a simple majority of votes cast. A two-thirds vote of the City Council is required to place this measure on the ballot.

YesSan Bruno Essential Services Protection Measure. To protect essential services such as: fixing potholes/city streets; providing rapid response to 9-1- 1 emergency calls; maintaining library programs for children, teens, adults/seniors; maintaining parks/open space; and general city services, shall the measure be adopted simplifying/modernizing San Bruno’s business license ordinance, making rates more equitable/equal, updating the tax rate schedule as described in the ordinance, until ended by voters, raising $4,200,000 annually, with annual independent audits?
No
Ballot Arguments and Impartial Analysis
In connection with the measure, the City Council must decide whether it will authorize arguments in favor or against the measure and rebuttal arguments to be included in the ballot materials.

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1. The City Council, or any member of members of the council authorized by the City Council,

2. Bona fide sponsor or proponent of the measure,

3. Bona fide associations of citizens, and

4. Individual voters who are eligible to vote on the measure.

The proposed resolution also adopts Elections Code Section 9285(a) to allow rebuttal arguments. Rebuttal arguments are not permitted if the City Council does not adopt Elections Code Section 9285(a).

The City Attorney will prepare an impartial analysis of the Measure, not to exceed 500 words, within ten days of adoption of the resolution.

Annual Independent Audit
Proceeds from the Business License Tax Modernization Measure, as a general tax, are deposited into the General Fund. The City’s existing annual independent financial audit covers all General Fund revenues and expenditures and will provide the accountability and transparency the community expects. The results of the annual audit will be presented to the City Council in accordance with the City’s standard practice.

FISCAL IMPACT:

Adding a ballot measure to the November 3, 2026 General Election ballot is estimated to cost approximately $13,000–$18,000, depending on the total number of measures on the ballot. The base cost of the Mayoral and City Council election is estimated at $118,000–$141,600, managed by San Mateo County and reimbursed by the City. Per-measure costs decrease as additional measures are added to the same ballot. The City may also incur additional nominal translation and legal costs.
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Honorable Mayor and Members of the City Council
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If approved by voters, the measure would generate approximately $4.2 million in net new annual General Fund revenue when fully implemented. The new structure will take effect January 1, 2027, and existing businesses will be subject to the new rates as part of the normal renewal process. Therefore, the first full fiscal year of the net new revenue will be FY 2027-28.

ENVIRONMENTAL IMPACT:

The action is not a project subject to CEQA. City Council’s action is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required.

RECOMMENDATION:

Adopt a Resolution Submitting to the Voters at the November 3, 2026 General Election a City of San Bruno Business License Tax Modernization Measure.

If the City Council wants to authorize the City Council, or any members of the City Council to author arguments authorized by the City Council and to allow rebuttal arguments for the measure, adopt the resolution entitled: “A Resolution of the City Council of the City of San Bruno Setting Priorities for Filing Written Arguments and Authorizing Rebuttals for a City Measure that Modernizes Business License Tax.”
ALTERNATIVES:

1. Direct staff to make changes to the draft ballot question, business category definitions, or rate structure prior to adoption of the resolution.

2. Do not proceed with placing a Business License Tax measure on the November 3, 2026 General Election ballot.

ATTACHMENTS:

1. Resolution Submitting Measure to Voters

2. Resolution of the City Council of the City of San Bruno Setting Priorities for Filing Written Arguments and Authorizing Rebuttals for a City Measure that Modernizes Business License Tax

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RESOLUTION NO. 2026 - ___
A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO SUBMITTING TO THE VOTERS AT THE NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION, A

MEASURE TO MODERNIZE AND SIMPLIFY THE BUSINESS LICENSE TAX, REQUESTING

THAT SUCH ELECTION BE CONSOLIDATED WITH THE STATEWIDE GENERAL

ELECTION HELD ON THAT DATE AND TAKING CERTAIN OTHER ACTIONS W
HEREAS, a business license tax is imposed on businesses in the City of San Bruno (the “City”) to ensure that businesses pay their fair share for use of the City’s roads, public safety and other City services; and
W
HEREAS, the tax was last adjusted 26 years ago, in 1999, and it provides a complicated methodology, with varied rate structures for dozens of different types of businesses that places an unfair burden on small businesses and does not ensure that larger businesses pay a fair share for the City services and infrastructure they utilize; W
HEREAS, the City proposes to modernize and simplify the business license tax, and to increase some business license tax rates; and
W
HEREAS, the proposed changes are designed to attract, retain, and encourage business growth and job creation, and increase some rates, while simplifying tax oversight and compliance; and
W
HEREAS, the business license tax is a general tax -- a locally controlled revenue source deposited in the general fund to be used for any City purposes, including essential services such as street repair, neighborhood safety, emergency response, and enhanced fire protection; and
W
HEREAS, the proposed business license tax is estimated to raise approximately $4,200,000 annually for the City; and
W
HEREAS, by prior resolution, the City Council called a general municipal election (the “Election”) for November 3, 2026, to be consolidated with the statewide general election to be held on that same date; and
W
HEREAS, following study sessions on June 23, 2026 and July 14, 2026, the City Council directed staff to bring back to the City Council for approval a business license tax modernization and simplification ballot measure to be placed on November 3, 2026 ballot.

W THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF SAN BRUNO, CALIFORNIA, AS FOLLOWS:

1. P
ursuant to Government Code Sections 53724 and Election Code Section 9222, the City Council directs that the ordinance attached hereto as Exhibit “A” and incorporated herein by
reference (the “Measure”) be submitted to the qualified voters of the City of San B
runo at the Election.

2. The ques
tion shall appear on the ballot as follows:
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ATTACHMENT 1

San Bruno Essential Services Protection Measure. To protect essential services such as: fixing potholes/city streets; providing rapid response to 9-1- 1 emergency calls; maintaining library programs for children, teens, adults/seniors; maintaining parks/open space; and general city services, shall the measure be adopted simplifying/modernizing San Bruno’s business license ordinance, making rates more equitable/equal, updating the tax rate schedule as described in the ordinance, until ended by voters, raising $4,200,000 annually, with annual independent audits?

Yes

This Measure is a general tax measure and must be approved by a majority of the votes cast in order to be adopted.

3. The full text of the Measure, attached to this Resolution as Exhibit A, being the proposed ordinance to modernize and simplify the business license tax, shall be completely printed in the voter pamphlet.

4. The City Council hereby directs the City Clerk to transmit a copy of the Measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the Measure, not to exceed 500 words in length, showing the effect of the Measure on the existing law and the operation of the Measure, and transmit such impartial analysis to the City Clerk no later than August 18, 2026 by 5:00 p.m..

5. Pursuant to Elections Code Section 10403, the City Council requests that the San Mateo County Board of Supervisors consent to consolidation of the Election with the general election to be conducted by the San Mateo County Registrar of voters on November 3, 2026. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating a special election consolidated with a statewide election. The City will bear all costs customarily charged by the County to a city in connection with a ballot question submitted at a municipal election that is consolidated with an election conducted by the County.

6. The City Council directs the City Clerk to file a certified copy of this Resolution with the Registrar of Voters of San Mateo County.

7. Notice of the time and place of holding of the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election in the time, form, and manner as required by law.

8. The Board of Supervisors is authorized to canvass the returns of the Election pursuant to Section 10411 of the Elections Code.

9. Pursuant to Section 10002 of the Elections Code, the Board of Supervisors is requested to permit the County Clerk to render all services specified by Section 10418 of the Elections Code relating to the election, for which services the City agrees to reimburse the County, in accordance with current County pro-rations and allocation procedures.

10. The City Clerk shall file a certified copy of this Resolution with the County Clerk. 180 of 245

11. The City Council hereby finds and determines that this action is not a project subject to the California Environmental Quality Act (CEQA) pursuant to Section 15378(b)(4) of the CEQA Guidelines because a measure to update the business license tax constitutes a government funding mechanism for municipal services and does not commit the City to any specific project which may result in a potentially significant physical impact on the environment. The City Council further finds and determines that even if the action were deemed to constitute a project under CEQA, it is exempt from CEQA pursuant to Section 15273(a) of the CEQA Guidelines because it establishes a charge that funds operating expenses incurred by the City for ongoing municipal service activities, including but not limited to road maintenance, repair, and improvement, public safety services, maintaining library programs, maintaining parks and open space and fire suppression activities. The business license tax revisions will increase revenues to allow for the continued funding of City services. The City Council additionally finds that the action is exempt pursuant to Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the action may have a significant effect on the environment.

---oOo---

I hereby certify that foregoing Resolution No. 2026 – ___ was introduced and adopted by the San Bruno City Council at a regular meeting on July 28, 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

_________________________________
Lupita Huerta, City Clerk
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4 EXHIBIT A

PROPOSED ORDINANCE

AN ORDINANCE OF THE PEOPLE OF SAN BRUNO, CALIFORNIA AMENDING CHAPTERS

3.04, 3.08, 3.12, AND 3.16 OF THE SAN BRUNO MUNICIPAL CODE TO MODERNIZE,

SIMPLIFY AND ADJUST THE RATES FOR THE BUSINESS LICENSE TAX

THE PEOPLE OF CITY OF SAN BRUNO ORDAIN AS FOLLOWS:

SECTION 1. Chapters 3.04 (Definitions), 3.08 (General Provisions), 3.12 (Applications for License-Payment of Tax) and 3.16 (Schedule of Taxes) of Article 1 (Business Taxes) of Title 3 (Revenue and Finance) of the San Bruno Municipal Code are hereby amended and restated in their entirety to read as follows (added language shown with underline and deleted language shown with strike through):

“Chapter 3.04 DEFINITIONS

§ 3.04.010. Generally.

For the purposes of this article the words and phrases set forth in Sections 3.04.020 through 3.04.090 3.04.270 shall have the meanings respectively ascribed to them.

§ 3.04.020. Apartment house.
"Apartment house" means any building, or portion thereof, which is designed, built, rented, leased, let or hired out to be occupied, or which is occupied as the home or residence of three or more families living independently of each other and doing their own cooking in the building, and includes flats and apartments.
§ 3.04.030. Auxiliary unit.
"Auxiliary unit" means an establishment primarily engaged in performing supporting services for other establishments of the same business rather than for the general public or for other businesses. "Auxiliary unit" includes, but is not limited to, the following:

A. A separate research and development or testing laboratory operated for manufacturing plants of the same business.

B. A separate warehouse or storage yard for merchandise of establishments of the same business for its own use and not for public storage.

C. Trading stamp redemption stores.

D. An automotive repair shop or storage garage operated by a department store, manufacturing, or transportation company, for its own use and not for the public (commercial) repair or storage of vehicles.

E. A separate repair shop serving various establishments of the same business primarily for the maintenance and repair of its own machinery and equipment.

F. Showrooms in which sales do not take place.

G. Field engineering support activities.
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5 H. Separate establishments engaged in news collection, editorial work, or advertising sales related to the publishing activity of the same company.

I. A separate establishment providing equipment to construction establishments of the same business.

J. Computing, tabulating, or data processing establishments primarily operated for a business' own use, rather than for the general public or for other business firms.

K. Purchasing offices of multiunit firms.

L. Accounting and billing offices operated for company use. § 3.04.040. Average number of persons employed.
"Average number of persons employed" means the number of employees, as defined in Section 3.04.140, employed within the city, earning wages during pay periods nearest the fifteenth day of each month as reported to the state department of employment on forms which are used for reporting payments under the Unemployment Insurance Act, for each month of the previous calendar year, adding the same and dividing by twelve. If the employer has been in business less than one year, he or she may use the average number of employees who will be employed by him or her during the remainder of the calendar year. At the option of the licensee, the average number of persons employed daily in his or her business for one year for the purpose of fixing the license tax due under this chapter shall be determined by ascertaining the total number of hours of service performed by all employees in the city during the previous year and dividing the total amount of hours of service thus obtained by the number of hours of service constituting a year's work of one full- time employee according to the custom or laws governing such employment. In computing the average number of persons employed, fractions of numbers shall be excluded.
§ 3.04.020 3.04.050. Business.
"Business" means professions, trades and occupations and every kind of calling, whether or not carried on for profit or livelihood.
§ 3.04.070. Cent ral administrative office.
"Central administrative office" means an establishment primarily engaged in general administrative, supervisory, accounting/purchasing, engineering and systems planning, advertising, legal, financial, or related management functions performed centrally for other establishments of the same business.

3.04.030 Collector/Tax Collector

“Collector” or “ Tax Collector” shall mean the finance director or the finance director’s designee who is charged with the administration of the business license tax. § 3.04.080. Community apartment.
"Community apartment" means a development in which an undivided interest in land is 183 of 245

6 coupled with the right of exclusive occupancy of any apartment located thereon.

§ 3.04.090. Condom inium.
"Condominium" means an estate in real property consisting of any undivided interest in common in a portion of a parcel of real property together with a separate interest in space in a residential building. Such separate interest may, with respect to the duration of its enjoyment, be either an estate of inheritance, or perpetual estate, an estate for life, an estate for years, such as a leasehold or subleasehold, or a right to use. § 3.04.100. Condominium project.
"Condominium project" means an undertaking whereby either:

A. Real property is developed or will be developed with dwellings consisting of two or more dwelling units; or
B. The estate or interest in one or more existing dwellings consisting of two or more dwelling units has been converted or is to be converted to one or more of the following forms of estates or interests in real property:

1. Condominiums;

2. Community apartments;

3. Stock cooperatives;

4. Such other estate or property interest by which a purchaser or occupant of a dwelling unit in such a dwelling may obtain a transferable, monetary equity accumulating right of ownership, occupancy, or use of such dwelling unit or the airspace therein, as opposed to the right of a mere tenant or lessee in a dwelling unit. § 3.04.110. Condominium unit.
"Condominium unit" means a dwelling unit within a condominium project. § 3.04.120. Development and construction.
"Development and construction" means any and all acts, connected with the building, erection, construction, creation, production, conversion into, subdivision to create or improvement to create any condominium project or single-family residential structure. § 3.04.130. Electrical musical device.
"Electrical musical device" means any machine, apparatus, or device operated or which may be operated by electricity, and:

1. Is designed or constructed for the purpose of producing or playing any musical toneor combination of tones;

2. The use, operation or playing of which is commenced, permitted, or allowed by the deposit of any coin, slug, or token in any slot or receptacle attached thereto; and

3. Which does not dispense any article or thing which cannot be operated as a 184 of 245

7 game or contest.
§ 3.04.040. 3.04.140. Employee.
"Employee" means any person engaged in the operation or conduct of any business, whether as owner, any member of owner's family, partner, agent, manager, solicitor and any and all persons employed or working in said business. § 3.04.150. Fa mily.
"Family" means one or more persons occupying a premises and living as a single housekeeping unit as defined in 12.80.265 (Housekeeping unit) of Chapter 12.80 (Definitions) of Title 12 (Land Use) of this code, as distinguished from a group occupying a motel, club, fraternity or sorority house.
§ 3.04.050. 3.04.160. Fixed place of business.
"Fixed place of business" means a place of business regularly kept open, with someone in charge thereof, for the transaction of the particular business engaged in during the hours customary to transact such business. Any person residing in the city and maintaining in his or her home any office for the transaction of details incidental to a business carried on elsewhere shall be deemed to have a fixed place of business.
§ 3.04.060. 3.04.165. Gambling club.
"Gambling club" means any establishment where legal gambling or gaming is conducted or licensed, specifically including any business or other enterprise that conducts or operates legal gambling or gaming. "Gambling club" does not include any facility operated by any bona fide nonprofit society, club, fraternity, labor, or other organization organized for similar purposes, which has adopted bylaws and duly elected directors and members, where the tables are for the exclusive use of the members of the organization, and no charge is made for any of the facilities. "Legal gambling" means any card or other game, except for bingo, played for currency, check, credit or any other thing of value which is not prohibited and made unlawful by Chapter 9 (commencing with Section 319) or Chapter 10 (commencing with Section 330) of Title 9 of Part 1 of the Penal Code, or otherwise prohibited by any ordinance of the city of San Bruno.
§ 3.04.070. 3.04.170. Gross receipts.

A. "Gross receipts," except as otherwise specifically provided, means and includes the total of amounts actually received or receivable from the sales and/or the total amounts actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, including interest and carrying charges in connection with such sales or services, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise.

B. Where the gross receipts are less than the cost of maintaining the operations of the Licensee, then the Licensee shall be deemed to produce gross receipts in an amount at least equal to the cost of operations. The “cost of operations” means the cost of maintaining the operations of the business 185 of 245

8 and includes, but is not limited to, rent, utilities, depreciation, salaries, wages, fixed charges, and other expenses.

C. A. Included in such term shall be all receipts, cash, credits, redemption stamps, and property of any kind or nature, without any deduction therefrom on account of the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever.

D. B. Not inc luded in such term shall be the following:

1. Cash discounts allowed and taken on sales;

2. Sales, use, transient occupancy or any taxes, required by law to be included or added to the purchase price and collected from the consumer or purchaser;

3. Such part of the purchase price of property returned by purchasers upon rescission of the contract of sale as is refunded in either case or by credit;

4. Receipts of persons acting as agents, brokers or trustees, provided the agent, broker, or trustee has actually paid those receipts to the principal and furnished the collector with the names and addresses of the others and the amounts paid to them, other than receipts received as commissions or fees earned, or charges of any character received for the performance of any service as agent, broker, or trustee. However, any agent, broker, or trustee dealing stocks or any other similar written instruments evidencing a right to participate in the assets of any business, or dealing in bonds or other evidences of indebtedness, who also deals in such property as a principal, shall include in the gross receipts by which the tax is measured the amount of his or her trading profits resulting from such dealings. No deduction from receipts attributable to trading as a principal shall be made unless such deduction is provided for in this section;

5. Receipts of refundable deposits, except that refundable deposits forfeited and taken into the income of the business shall not be excluded;

6. As to a retail gasoline dealer, a portion of his or her receipts from the sale of motor vehicle fuel equal to the motor fuel license imposed by and previously paid under the provisions of Part 2 of Division 2 of the Revenue and Taxation Code of the state;

7. As to a retail gasoline dealer, the special motor fuel tax imposed by Section 4041 of Title 26 of the United States Code, as it may be amended from time to time, if paid by the dealer or collected by the dealer from the consumer or purchaser;

8. T hat por
tion of the receipts of a general contractor which represents payments to subcontractors; provided, that such subcontractors are licensed (or taxed) under this article, and provided, that the general contractor furnishes the tax collector with the names and addresses (personal and/or business) of the subcontractor and the amounts paid or payable to each subcontractor;

8. 9. Cash value of sales, trades, or transactions between departments or units of the same business, commonly called "interdepartmental transfers;"

10. Sales for convenience where sales of new goods, wares, or merchandise are made by a person engaged in selling such articles to another person similarly engaged where:
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9 i. The primary purpose of the particular transaction of sale is to accommodate the purchaser rather than to make a sale in the ordinary course of business, and the price paid is essentially the book value of the article; and
ii. Where, in the particular kind of business involved, a similar manner of dealing is frequent or customary in the circumstances under which the particular sale is made; and
iii. Where goods, wares, or merchandise of like or similar kind and of substantially equivalent value to that which was sold is received in consideration;

9. 11. The amount of gross receipts which has been subject to a license tax paid to any other city;

12. Gross receipts from the sale of alcoholic beverages.

3.04.080 Licensee
“Licensee” means a person required to obtain a business license under this article. § 3.04.180. Mechanical amusement device.
"Mechanical amusement device" means any machine, device, or contrivance designed, constructed or operated for the playing of any game or contest, or for the exhibition of any display or picture for amusement, the use, operations, or playing of which is dependent upon or is commenced, permitted, or allowed by the deposit of any coin, slug, or token in any slot or receptacle attached thereto or connected therewith.
§ 3.04.190. Peddler.
"Peddler" means as defined in Section 4.16.020 (Definitions) of Chapter 4.16 (Peddlers) of this code.
§ 3.04.090. 3.04.200. Person.
"Person" means any domestic or foreign corporation, association, syndicate, joint stock corporation, partnership of any kind, club, society or individual transacting and carrying on any business in the city, other than as an employee.
§ 3.04.210. Room.
"Room" means a space in a structure for living, eating, sleeping, or cooking. "Room" does not include bathrooms, toilet compartments, halls, storage or utility space, and similar areas.
§ 3.04.220. Roominghouse.
"Roominghouse" means a dwelling other than a hotel where lodging is provided for three or more persons for compensation.
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10 § 3.04.230. Sale.
"Sale," as used in Section 3.16.160 (Condominium projects), means a conveyance or transfer of title to a condominium unit, to a community apartment, or to a single- family residence or lot, an issuance of stock and leasehold interest pertaining to a condominium unit or to a community apartment, or any other issuance or transfer of an equity interest in a condominium project unit to a unit purchase in such form as may be appropriate to the particular type of condominium project.
§ 3.04.240. Solicitor.
"Solicitor" means the same thing as "peddler" and which is defined in Section 3.04.190 herein.
§ 3.04.250. Standard Industrial Classification Manual.
"Standard Industrial Classification Manual" means the most recently published edition of the Standard Industrial Classification Manual of the Office of Management and Budget of the Executive Office of the President of the United States. § 3.04.260. Stock cooperative.
"Stock cooperative" means a corporation which is formed or availed of primarily for the purpose of holding title to, either in fee simple or for a term of years, improved real property, where all or substantially all of the shareholders of such corporation receive a right of exclusive occupancy in a portion of the real property, title to which is held by the corporation, which right of occupancy is transferable only concurrently with the transfer of the share or shares of stock or membership certificate in the corporation held by the person having such right of occupancy.
§ 3.04.270. Temporary vendor.
"Temporary vendor" means any person engaging in the business of selling or taking orders for goods, wares, merchandise, or other things of value, whether in his or her actual possession or for future delivery, from a fixed place of business, for a period of time not exceeding thirty days, without any intention of engaging in such business at such location on a permanent basis.

§ 3.04.280. Ve hicle vendor.
"Vehicle vendor" means any person (natural person, firm, partnership, association, corporation, or other entity) vending from a vehicle used for the purposes of selling, or offering for sale, goods or merchandise to the public. "Vending vehicles" means and includes, but is not limited to, any catering truck, lunch wagon, eating car, van or trailer.

Chapter 3.08 GENERAL PROVISIONS
§ 3.08.010. Purpose.

This article is enacted solely to raise revenue for municipal purposes and is not intended for the purpose of regulation.
§ 3.08.020. Tax license required—Violations.
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11 A. There are imposed upon all businesses in the city license taxes in the amounts set forth in Chapter 3.16 (Schedule of Taxes).

B. It is unlawful for any person, either for himself or herself or for any other person, to commence, transact or carry on any business in the city not excluded by this article, without first having procured a tax license from the city to do so, or without complying with any and all regulations contained in this article. § 3.08.030. Unla wful business not authorized.

No license issued under the provisions of this article shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any ordinance of the city.
§ 3.08.030. 3.08.040. Conformance to other regulations required.

The payment of a license tax and the issuance of a tax license to any person by the city shall not entitle the licensee to carry on any business unless the licensee has complied with all the requirements of this code and all other applicable laws, nor to engage in or to carry on any business in any building or in any premises designated in such license if such building or premises are situated in an area or locality in which the conduct of such business is in violation of this code, or any ordinance of the city, or any other law.
§ 3.08.040. 3.08.050. Evidence of doing business.

When any person shall by use of signs, circulars, cards, telephone book, or newspapers, advertise, hold out, or represent that he or she is in business in the city, for one transaction or more, or when any person holds an active license or permit issued by a governmental agency indicating that he or she is in business in the city, such facts shall be considered prima facie evidence that he or she is conducting a business in the city.
§ 3.08.050. 3.08.060. Enforcement of article—Exhibit of tax license certificate on demand required.

A. It shall be t he duty of the tax collector and his or her authorized deputies or assistants to enforce the provisions of this article. The chief of police shall render such assistance as the tax collector may require.

B. In the performance of his or her duties under this article, the tax collector and his or her authorized deputies and assistants may examine all places of business in the city to ascertain whether the provisions of this article have been complied with. They and any police officer shall be authorized to enter, free of charge, at any reasonable time, any place of business required to be licensed under this article and demand exhibition of its tax license certificate.

C. It is unlawful for any person having such tax license certificate in his or her possession or under his or her control to willfully fail to exhibit such certificate on demand of the tax collector, any authorized deputy or assistant of the tax collector, or any police officer.
§ 3.08.060. 3.08.070. Branch establishment—Separate businesses at one location. 189 of 245

12 A. Separate tax licenses shall be obtained for each branch establishment or location of the business engaged in, as if each such branch establishment or location were a separate business.

B. Separate tax licenses shall be obtained for each separate type of business at the same location.

C. Each license shall authorize the licensee to engage only in the business licensed thereby at the location of in the manner designated in such license.

D. Warehouses, distributing plants and other locations which generate no additional gross receipts but are used in connection with and incidental to a business licensed under this article shall not be deemed to be separate places of business or branch establishments.
§ 3.08.070. 3.08.080. Carrying on two or more businesses.

A. Any person managing, carrying on, or conducting two or more separate businesses subject to the payment of a license tax under more than one classification in this article, whether or not at the same location or under the same management shall pay a separate license tax for each of said businesses.

B. The gross r eceipts derived from that portion of the two or more businesses which is subject to a license tax other than on the basis of gross receipts, shall be deducted from the total gross receipts in determining the annual gross receipts upon which the tax based upon gross receipts is predicated.
§ 3.08.080. 3.08.090. Exhibiting tax licenses.

A. Every person having a tax license under the provisions of this article and carrying on a business at a fixed place of business shall keep such license posted and exhibited while in force, in some conspicuous part of the place of business.

B. Every person having such a license and not having a fixed place of business shall carry such license with him or her at all times while carrying on the business for which the license was granted. If a vehicle is used in the conduct of the business, a windshield sticker shall be attached thereto as otherwise required by this article. § 3.08.090. 3.08.100. Exemptions—Constitutional and statutory.

A. Except as may be otherwise specifically provided in this article, the terms hereof shall not be deemed or construed to apply to the extent the business tax is prohibited by federal or state law. to any of the following persons:

1. Any public utility which pays to the city a tax under a franchise or similar agreement;

2. Insurance companies and associations to the extent that cities are precluded from levying license taxes under Article 13, Section 28 of the State Constitution;

3. Banks and financial corporations to the extent that cities are precluded from levying license taxes under Part 11 of Division 2 of the Revenue and Taxation Code; 190 of 245

13 4. Any person transacting or carrying on any business exempt by virtue of the Constitution or applicable Statutes of the United States or the state from the payment of such taxes as prescribed in this article; and

5. To the extent exempted by federal or state law, including, but not limited to, California Business and Professions Code Section 16550.2 (Driver operating in multiple local jurisdictions).

B. The tax collector may require the filing of a verified statement from any person claiming to be excluded or exempt by the provisions of this section. Such statement shall set forth all facts upon which the exclusion or exemption is claimed. § 3.08.110. Ex emptions from payment of tax—Charities, disabled persons and other persons.

A. Charitable and Nonprofit Organizations and Events. The provisions of this article shall not require the payment of a license tax to conduct, manage, or carry on:

1. 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 profits not derived, either directly or indirectly, by any individual;

2. Any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects within the city, whenever the receipts of any such event are to be appropriated to any church or school or to any religious or benevolent purpose; or

3. Any entertainment, dance, concert, exhibition, or lecture by any religious, charitable, fraternal, educational, military, state, county or municipal organization or association whenever the receipts of any such event are to be appropriated for the purpose and objects for which the organization or association was formed, and from which profit is not derived, either directly or indirectly, by any individual.

This subsection shall not exempt any organization or association from complying with any other provisions of this code which may require a permit for any activity thereof, nor any person acting as a promoter of any such activity for profit of livelihood.

B. Disabled Persons. The provisions of this article shall not require the payment of a license tax by:

1. Any honorably discharged or relieved veteran of any of the armed forces of the United States who provides a certificate of disability from the Veteran's Administration, is physically unable to earn a livelihood by manual labor, is a voter or resident, respectively, of this state, and desires to hawk, peddle or vend goods, wares, and merchandise owned by him or her or to distribute circulars;

2. Any city employee who is injured during the course of the performance of his or her duties, and who becomes physically disabled as a result therefrom; provided, that such exemption shall first be approved by the city council.

C. Auctioneers. The provisions of this article shall not require the payment of a license tax by any real estate auctioneer whose business is limited exclusively to auctioning real estate, except if such auctioneer has a fixed place of business in 191 of 245

14 the city.

D. Young Persons With Limited Revenues. The provisions of this article shall not require the payment of a license tax by any individual person of the age of sixteen years and under whose annual gross receipts from any and all businesses is five hundred dollars or less.

E. Highway Carriers. The provisions of this article shall not require the payment of a license tax for the operation of vehicles for the sole purpose of transportation of property for hire, where such activity is subject to the highway carriers uniform business license tax and defined as intercity transportation business pursuant to the Highway Carriers' Uniform Business License Tax Act; provided, however, that:

1. Persons who make deliveries of goods, wares, or merchandise, or other personal property on a basis other than for -hire shall not be entitled to such exemption in connection with such activities; and

2. Any person who conducts any business in the city other than as defined as intercity transportation business in said act shall be required to pay a business license tax as specified in this chapter.

F. Application for Exemption. Any person claiming an exemption pursuant to this section shall file a verified statement with the tax collector stating the facts upon which the exemption is claimed. The tax collector, upon a proper showing contained in the verified statement, shall issue a license to such person claiming exemption under this section without payment to the city of the license tax required by this article. § 3.08.100. 3.08.120. Revocation of exemption.

The tax collector may revoke any exempt license granted pursuant to the provisions of this article upon information that the licensee is not entitled to the exemption. In such revocation the procedure to be followed and right of appeal and hearing shall be provided as is applicable to issuance or refusal to issue licenses, the amount of license tax due, or the classification of the business for purposes of calculating the license tax. § 3.08.110. 3.08.130. Interstate commerce—Relief from undue burdens.

A. No license tax authorized by this article shall be so applied as to occasion an undue burden upon interstate commerce.

B. If a licensee or applicant for a license believes that the license tax places an undue burden on such commerce, he or she may apply to the tax collector for an adjustment of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application may be made before, at or within six months after payment of the prescribed license tax.

C. The applicant shall, by affidavit and supporting testimony, show his or her method of business and the gross volume or estimated gross volume of business and such other information as the tax collector may deem necessary in order to determine the extent, if any, of such undue burden on such commerce.

D. The tax collector shall conduct an investigation. After obtaining the written approval of the city attorney, the tax collector shall within fifteen days after the applicant has submitted the necessary information fix the license tax for the applicant 192 of 245

15 in an amount that is reasonable and nondiscriminatory. If the license tax has already been paid, the tax collector shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the tax collector shall be authorized to base the license tax upon a percentage of gross receipts or any other measure which will assure that the license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by this article.

E. Should the tax collector determine the gross receipts measure of license tax to be the proper basis, he or she may require the applicant to submit, either at the time of termination of the applicant's business in the city or at the end of each three months, a sworn statement of the gross receipts and pay the amount of license tax therefor: provided, that no additional license tax during any one calendar quarter shall be required after licensee shall have paid an amount equal to the annual license tax as prescribed in this article. § 3.08.120. 3.08.140. Calculation of tax—Persons doing business within and outside city.

A. Business Within and Outside of City—Apportionment.

1. Each person who transacts and carries on a business in the city and maintains fixed places of business both within and outside the city, and who is subjected to a business license tax based upon gross receipts pursuant to this article shall apportion that portion of his or her gross receipts derived from business transacted or carried on within the city as the basis for liability for business license tax pursuant to this article.

2. When such apportionment cannot be accurately made between cities wherein business is transacted by accounting methods normally or customarily used by the taxpayer, the taxpayer shall apportion as that portion of the gross receipts derived from business transacted or carried on within the city that proportion of his or her gross receipts which the cost of doing business within the city bears to the total costs of doing business both within and outside the city.

B. Business Without Fixed Place of Business in City—Apportionment.

1. Each person who transacts and calls on a business in the city who does not maintain a fixed place of business in the city and is subject to a business license tax based upon gross receipts pursuant to this article shall apportion his or her gross receipts in the same manner as provided in subsection A of this section for persons maintaining fixed places of business within and outside the city.

2. Each person to whom this subsection applies shall be allowed as a credit against the business tax otherwise due the city, an amount equal to the amount of business tax or business license tax paid to another city for the same period to the extent that such tax is attributable to gross receipts derived from business transacted and carried on in the city; provided, however, that no credit shall be allowed in excess of the amount of business license tax which would otherwise be due to the city.

C. Business With Fixed Place of Business Only Within City Doing Business Outside City—Credit For Taxes Paid.

Each person who transacts and carries on a business at a fixed place of business within the city and who transacts and carries on such an activity outside 193 of 245

16 the city without a fixed place of business shall compute his or her tax liability pursuant to this article as if his or her entire business were conducted and transacted within the city.

2. Such person shall be allowed as a credit against the business license tax otherwise due to the city an amount equal to the amount of business tax or business license tax paid to another city for the same period on account of business carried out and transacted in such city, but no credit shall be allowed in excess of the amount of business license tax which would otherwise be due to the city.

3. This subsection shall not apply to any business licensed pursuant to Section

3.16.015.

D. Flat Tax Not Subject to Apportionment. The apportionment provisions of this section shall not apply to any business license tax to the extent payable on a flat rate basis.

Chapter 3.12 APPLICATIONS FOR LICENSE—PAYMENT OF TAX
§ 3.12.010. Application—Generally.

Every person required to be licensed under this article shall apply to the tax collector for a business license.
§ 3.12.020. Application—Statements required in determining amount of tax.

A. When a person applies for the first business license for a business or a newly established business the applicant shall submit to the tax collector a written statement containing the following information on a form furnished by the tax collector and sworn to by a person authorized to administer oaths:

Type of Business Information to be Furnished

1. Bowling alley 1. Number of alleys.

2. Cardrooms 2. Maximum number of tables
authorized by cardroom license.

3. Electrical musical devices and
mechanical amusement devices

3. Number of devices.

4. Shuffleboards 4. Number of games.

5. Businesses taxed based upon
annual gross receipts

5. Estimated gross receipts for the
period to be covered by the license
to be issued.

Where the gross receipts number of games, alleys, tables, or devices is unknown at the time of the application, the applicant shall submit estimated numbers.

B. Such estimate of gross receipts or numbers of games, alleys, tables, or devices, if accepted by the tax collector as reasonable, shall be used in determining the amount of license tax to be paid by the applicant. The amount of the tax so determined shall be tentative only, and such person shall, within thirty days after 194 of 245

17 the expiration of the period for which the license was issued, furnish the tax collector a sworn statement, upon a form furnished by the tax collector, showing the gross receipts during the period of such license or the number of games, alleys, tables, or devices which were in actual use at the commencement of the license period. The license tax for such period shall be finally ascertained and paid in the manner provided by this chapter for ascertaining and paying of renewal license taxes for other businesses, after deducting from the payment found to be due the amount paid at the time such first license was issued. The tax 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 or her the written statement and paid the license tax as required in this chapter.

C. Business licenses based upon number of card tables authorized shall be paid in adv
ance based upon actual numbers of tables authorized.

D. When a person applies for the second initial licensing period business license for a business or newly established business the tax of which is based upon gross receipts, and the initial licensing period was less than one fiscal year, the basis of the tax imposed for the second license year shall be a dollar amount of gross receipts determined by the following formula:

(Actual amount of gross receipts from initial licensing period x Total number of days in the fiscal year) / Number of days in the fiscal year of the initial licensing period § 3.12.030. Renewal licenses.

A. After the first license period of operating in the city and for all subsequent license periods, a business’s license renewal application is due on the first day of the month following the expiration of the current license period.

B. The business license renewal application must provide the following information and any other information required by the tax collector:
(1) The name of the business and the address at which it will be operating. (2) The nature of the business's activities sufficient for the tax collector to determine or confirm the business classification and category of the business. (3) The business's gross receipts for the previous tax year unless a renewing business did not operate for the entirety of the previous tax year, in which case it must provide an estimate of the business's gross receipts for the current tax year, pay tax based on that estimate, and comply with subdivision C below.

C. For a business’s first renewal, If a business pays tax based on an estimate of gross receipts for the applicable license period, the business must, within thirty (30) days after the expiration of that license period, provide the Tax Collector with a statement of the business’s actual gross receipts, together with supporting records, for the license period for which an estimate was used to calculate the tax.
(1) If the actual gross receipts for the license period are more than the estimated gross receipts on which the tax was calculated and paid, then the business must pay 195 of 245

18 the additional amount of tax based on the additional gross receipts within thirty (30) days after the expiration of the license period.
(2) If the actual gross receipts for the tax year are less than the estimated gross receipts on which the tax was calculated and paid, then the excess amount of tax will be refunded to the business or applied to the business's tax for the current tax year.

An applicant for a renewal license shall submit to the tax collector a written statement setting forth such information concerning the applicant's business during the preceding licensing period as may be required by the tax collector to enable him or her to ascertain the amount of the license tax to be paid by the applicant for the ensuing licensing period.

Such statement shall be furnished on a form provided by the tax collector and shall be sworn to before a person authorized to administer oaths. § 3.12.040. Limitations.

A. No greater or less amount of money shall be charged or received for any license tax other than provided for in this article.

B. In no case shall any mistake made by the city in stating the amount of a license tax prevent or prejudice the collection by the city of what shall actually be due from anyone carrying on a business subject to a license tax under this article. No statement 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 article.
§ 3.12.050. Taxes—How payable.

All license taxes due under this article shall be paid in advance in lawful money of the United States, at the office of the to tax collector.
§ 3.12.060. Confidentiality of information.

It is unlawful for the tax collector or any person having an administrative duty under the provisions of this article to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment of any person or business or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures or any particular thereof set forth in any statement or to permit any statement or copy of any s tatement or book containing any abstract or particulars thereof, to be seen or examined by any person. Nothing in this section, however, shall be construed to prevent the following:

A. The disclosure to or the examination of records and equipment by another city official, employee or agent for collection of taxes for the sole purpose of administering or enforcing any provisions of this article or collecting taxes imposed under this article;
B. The disclosure of information to, or the examination of records by federal or state officials, or the tax officials of any city or county or the tax officials of the city and its auditors if a reciprocal arrangement exists, or to a grand jury or a court of law, upon subpoena;
C. The disclosure of information and results of examination of records of particular 196 of 245

19 taxpayers, or relating to particular taxpayers, to a court of law in a proceeding brought to determine the existence or amount of any business license tax liability of the particular taxpayers to the city;
D. The disclosure after the filing of a written request to that effect to the taxpayer himself or herself, or to his or her successors, receivers, trustees, executors, administrators, assignees and guarantors if directly interested, of information as to the items included in the measure of any paid tax, any unpaid tax or amounts of tax required to be collected, interest and penalty; provided further, that the city attorney approve such disclosure and that the tax collector may refuse to make any disclosure referred to in this subsection when in his or her opinion the public interest would suffer thereby;
E. The disclosure of the names and addresses of taxpayers pursuant to this article, and the general type or nature of their businesses;
F. The disclosure of statistical information or compilations as to various categories of businesses and their gross receipts, where no financial data relative to specific business is released;
G. The disclosure by way of public meeting or otherwise of such information as may be necessary to the city council in order to permit it to be fully advised as to the facts when a taxpayer files a claim for refund of license taxes, or submits an offer of compromise with regard to a cla im asserted against him by the c ity for license taxes, or when acting upon any other matter.
§ 3.12.070. Audit of statements and records.

A. Any statement submitted to the tax collector and each of the several items therein contained shall be subject to audit and verification by the tax collector, his or her deputies, or authorized employees of the city who are hereby authorized to examine, audit and inspect such books and records of the business which is the subject of the statement as may be necessary in their judgment to verify or ascertain the amount of business license tax due. Records which shall be maintained for audit purposes, shall include state and federal income tax returns, schedules and records included in such returns.

B. All persons subject to the provisions of this article shall keep complete records of business transactions, including sales receipts, purchases and other expenditures, state and federal income tax returns (including schedules and records included in such returns). Such persons shall retain such records for a period of at least three four years. No person required under this section to keep records shall refuse to allow authorized representatives of the tax collector to examine such records at reasonable times and places.
§ 3.12.080. De termination of tax or license classification—Right to hearing.

A. The tax collector has the right to make the final determination of the proper classification of any business.

B. If the tax c ollector determines that a l icensee has incorrectly reported any information to the city or has not paid all or any of the tax, penalties, or interest that are due, the tax c ollector may, using any information available to the tax collector, issue an 197 of 245

20 initial determination stating what the tax collector believes to be the correct information and, if new or additional tax, penalties, or interest are due, how much tax, penalties, or interest are due.  The initial determination must be served on the licensee either personally or by U.S. mail to the most recent address for the licensee in the tax collector’s records.

C. A licensee affected by an initial determination may within 15 days of service of an initial determination contest the initial determination and request a hearing before the tax collector by filing with the tax collector a written request for a hearing. The further accrual of penalties and interest shall be tolled upon the filing of a request for a hearing. If a licensee does not contest an initial determination and request a hearing with the tax collector within 15 days of service of the initial determination, the initial determination is final and cannot be appealed.

D. If a licensee timely contests an initial determination and requests a hearing, the tax collector must set a hearing within 30 days of the filing of the request for a hearing or as soon thereafter as reasonably practical. Notice of the hearing must be served on the licensee either personally or by U.S. mail to t he most recent address for the licensee in the tax collector’s records.

E. At the hearing the licensee may present evidence and argument regarding the initial determination to show why the initial determination is incorrect and to show what the determination of the tax collector should be. Within 60 day after the close of the hea ring or as soon thereafter as reasonably practical, the tax collector must serve a final determination, setting forth the tax collector’s determination of the facts and issues that were the subject of the initial determination.  The final determination must be served on the licensee either personally or by U.S. mail to the most recent address for the licensee in the tax collector’s records. Unless an appeal of a final determination is filed under Section 3.12.170, any penalties or interest tolled under this section will resume accruing 10 days after the service of the final determination.

A. Initial Determination. The tax collector shall determine the amount of license tax due or the proper classification for a business by means of such information as the tax collector may be able to obtain if:

1. Any person fails to file any required statement within the time prescribed; or

2. If, after demand therefor has been made by the tax collector, he or she fails to file a corrected statement within fifteen days after notification to do so; or

3. It appears to the satisfaction of the tax collector that a statement filed does not set forth the facts of the business for which a license is required; or

4. If a licensee or an applicant for a license believes that his or her individual business is not assigned to the proper classification because of circumstances peculiar to it.

B. Notice of Determination. If such determination is made, the tax collector shall give notice of the amount so assessed, or classification found to be appropriate in the following manner:

1. By serving it personally; or
198 of 245

21 2. By depositing it in the United States mail, postage prepaid, addressed to the person so assessed at the address appearing on his or her last business license or application therefor.

C. Right to Hearing. Such persons may, within ten days after the serving or mailing of such notice, apply in writing to the tax collector for a hearing on the amount of the license tax or classification determined.

If such application is made, the tax collector shall give not less than five days' written notice, in the manner prescribed herein, to the licensee to show cause, at a time and place fixed in the notice, why the amount specified therein should not be fixed or classification determined for such license.

At such hearing the licensee may appear and offer evidence why such specified tax should not be fixed as the license tax or such classification prescribed.

After such hearing the tax collector shall determine the proper tax to be charged or classification prescribed. The tax collector shall forthwith give written notice to the licensee in the manner prescribed herein of such determination and the amount of such tax.
§ 3.12.090. Reporting of gross receipts.

When an applicant for a business license is required to pay a business license tax measured by gross receipts, except in case of an application for an original license pursuant to Section 3.12.020 (Application— Statements required in determining amount of tax), he or she shall not be required to report the exact amount of his or her gross annual receipts, but shall report to the tax collector the particular bracket of the schedules in this title within which his or her gross annual receipts fall. § 3.12.090. 3.12.100. Contents of license.

Upon application for a license under this article and upon the payment of the prescribed license tax, the tax collector shall issue to such applicant a license which shall contain the following:

A. The business licensed name;
B. The place where such business is to be transacted and carried on; C. The date of the expiration of the license;
D. Such information as may be necessary for the enforcement of the provisions of this article.
§ 3.12.100. 3.12.110. How and when tax payable.

A. Annual Licenses. Unless otherwise specifically provided in this article, all annual license taxes shall be due and payable on the first day of August of each year and delinquent on the first day of September of each year.

B. Licenses Other Than Annual. Except as otherwise specifically proved provided in this article, license taxes other than annual shall be due and payable and delinquent as follows:
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22 DUE DELINQUENT

1. Quarterly February 1st March 1st
May 1st June 1st
August 1st September 1st
November 1st December 1st

2. Daily Each day in advance

§ 3.12.110. 3.12.120. Penalty—Failure to pay tax when due.

If a person responsible for payment of a business license tax fails to pay such tax when due, there shall be added a penalty of twenty percent of such license tax on the last day of each month after the due date thereof. The amount of the penalty to be added shall not exceed one hundred percent of the amount of the license tax due. If, after a payment is made to the tax collector, the records of the taxpayer are examined, audited, or inspected and it is determined by the tax collector that the amount paid was, in fact, less than the amount due, the penalty applicable for failure to pay the tax when due shall begin to apply from the date the amount of the deficiency was delinquent rather than from the date of notice by the tax collector of the deficiency. § 3.12.120. 3.12.130. Transfer of license.

A. No license issued pursuant to this article shall be transferable from one person to another.

B. If a license is iss ued for the transaction of business at a particular place of business, the license, upon application and payment of a fee in an amount established by resolution of the city council, may have the same license amended to reflect the transfer of the business under the same license at some other location. § 3.12.140. Duplicate licenses.

The tax collector may issue a duplicate license to a licensee to replace a license previously issued which has been lost or destroyed. To obtain a duplicate license, the licensee shall file a statement that the license has been lost or destroyed and pay the tax collector a duplicate license fee in an amount established by resolution of the city council.
§ 3.12.130. 3.12.150. Granting of waivers, variances by tax collector.

The tax collector shall have the power for good cause shown:

A. To extend the time for filing any required sworn statement for a period not exceeding thirty days;
B. To waive any penalty that would otherwise have accrued; C. To compromise any claim involving five hundred dollars or less as to the amount due; provided, that claims involving greater amounts shall only be compromised 200 of 245

23 with the consent of the city council.
§ 3.12.160. Ve hicle stickers.

A. Upon the issuance of a business license for any business which is taxed according to the number of vehicles used in the business, the tax collector shall deliver to the licensee one windshield sticker for each vehicle used by the licensee in the conduct of his or her business. The sticker shall be attached to the windshield of such vehicle. If the vehicle does not have a windshield, the sticker shall be attached in a conspicuous place in the operator's compartment of each vehicle.

B. If subsequent to the issuance of any license and prior to its expiration date, any licensee uses any vehicle in his or her business for which a windshield sticker has not been issued, he or she shall procure a windshield sticker for each such vehicle from the tax collector. The tax collector shall furnish such windshield sticker without cost other than any additional license tax which may be due, upon satisfactory proof of the use of such vehicle by the licensee.

C. No person subject to license under this article shall drive, operate, use, or cause to be driven, operated, or used, any vehicle in the conduct of his or her business without a sticker being attached as required in this article, or to remove or deface or cover up the sticker, or to place the same upon any vehicle other than a vehicle used by the licensee in his or her business.
§ 3.12.170. Stickers for electrical and mechanical devices.

A. Upon the issuance of any license for any electrical musical device or mechanical amusement device, the tax collector shall deliver to the licensee one sticker for each device used in the conduct of his or her business. Such sticker shall be attached in a conspicuous place on the device.

B. If subsequent to the issuance of any license and prior to its expiration date, any licensee uses any electrical musical device or mechanical amusement device for which a sticker has not been issued, he or she shall procure a sticker from the tax collector. The tax collector shall furnish such sticker without cost other than any additional license tax which may be due upon production of satisfactory proof of the use of such device by the licensee.

C. No person subject to license under this article shall operate or use, or cause to be operated or used, any electrical musical device or mechanical amusement device in the conduct of his or her business without a sticker being attached as required in this article, or to remove, deface or cover up the sticker, or place, cause to be placed, or permit the placing of such sticker upon any such device other than the one used by the licensee in his or her business.
§ 3.12.180. Minimum license tax—Persons refusing to permit audits.

If a licensee or person engaged in business for which a license is required refuses to permit an audit pursuant to Section 3.12.070, the minimum business license tax shall be one thousand five hundred dollars per year.
§ 3.12.140. 3.12.190. License tax a debt.
201 of 245

24 The amount of any license tax and penalty imposed pursuant to this article shall be a debt to the city. An action may be commenced in the name of the city in any court of competent jurisdiction for the amount of any delinquent license tax and penalties. § 3.12.150. 3.12.200. Statute of limitations—Business license tax.

Any action commenced to enforce the payment of any business license tax due, or any other requirement of this article shall be commenced within four years of the accrual of the cause of action.
§ 3.12.160. 3.12.210. Refunds.

A. A licensee who believes that any tax, penalty, or interest has been illegally, erroneously, or mistakenly paid to, collected by, or otherwise received by the city may file a claim for a refund of the amount of tax, penalty, or interest claimed to have been improperly received by the city.

B. The claim must be filed with the tax collector and signed under penalty of perjury by the licensee. The claim must state:

1. The legal and factual basis for the refund claim;

2. The amount of tax, penalty, or interest allegedly improperly received by the city,

3. The date or dates that the improper payments were made to the city, and

4. The address of the claimant.

C. The claim must be filed with the tax collector within one year of the date of the allegedly improper payment to the city.

D. The tax collector must provide a written decision on the claim within 45 days of the filing of the claim by serving the decision on the claimant either personally or by U.S. mail to the address provided in the claim. Service is effective upon deposit of the response in the U.S. Mail.

E. A claimant may challenge the tax collector’s decision on a refund claim under section 3.12.170.

A. Except as provided in subsection C of this section, no refund for any overpayment of business license taxes imposed by this article shall be allowed in whole or in part unless a claim for refund is filed with the tax collector within a period of three years from the last day of the calendar month following the period for which the overpayment was made.

B. All claims for refund of the amount must be filed with the tax collector on forms furnished by him or her and in the manner prescribed. The tax collector may refund the amount overpaid upon the filing of such claim if he or she determines that an overpayment has been made.

C. The filing of a claim shall not be required if the amount due has been verified by 202 of 245

25 an independent auditor selected by the city.
§ 3.12.170. 3.12.220. Appeals—Due date of tax finally determined.

A. Any person aggrieved by any decision of the collector concerning the amount of such license taxes may appeal to the city manager by filing a notice of appeal with the city manager. The city manager shall thereupon fix a time and place for hearing such appeal.

The city manager shall give notice to such person of the time and place of the hearing by serving it personally or by depositing it in the U.S. Post Office postage prepaid, addressed to such person at his last known address. The city manager shall have the authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provision of this chapter.

B. Any person aggrieved by any decision of the city manager concerning the amount of such license taxes may appeal to the council by filing a notice of appeal with the city clerk. The council shall thereupon fix a time and place for hearing such an appeal. The city clerk shall give notice to such person of the time and place of the hearing by serving it personally or by depositing it in the U.S. Post Office postage prepaid, addressed to such person at his last known address. The city council shall have the authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provision of this chapter.

A. Who May Appeal. Any person aggrieved by any decision of the tax collector regarding the issuance or refusal to issue a license, the appropriate license classification of the business, or the amount of a license tax may appeal to the city council by filing a notice of appeal with the city clerk within fifteen days of such decision. The notice of appeal shall be accompanied by an appeal fee in an amount established by resolution of the city council and shall state the grounds for the appeal.

B. Public Hearing. The city clerk shall set a time and place for a public hearing of such appeal before the city council and shall give the appellant not less than ten days' written notice thereof in the following manner:

1. By serving it personally; or

2. By depositing it in the United States mail, postage prepaid, addressed to such person at the address appearing on his or her last business license or application.

At the public hearing the city council shall consider the evidence presented by the appellant, the tax collector, and other interested parties prior to making a decision.

The hearing may be continued from time to time.

C. Findings of City Council. The findings of the city council shall be final and conclusive. They shall be served upon the appellant in the manner prescribed in subsection B of this section by the city clerk.

D. Due Date of Tax. The amount of any license tax finally determined as provided in this section shall be due and payable as of the date the original license tax was due and payable, together with any penalties that may be due thereon; provided, however, that if the amount of such license tax is fixed in accordance with the original statement of the appellant no penalty shall attach by reason of any 203 of 245

26 delinquency.
§ 3.12.180. 3.12.230. Remedies cumulative.

All remedies provided under this article shall be cumulative. The use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this article.
§ 3.12.190. 3.12.240. Effect on past actions and obligations.

Neither the adoption of the ordinance codified in this article, nor its superseding of any portion of any other ordinance of the city shall in any manner be construed:

A. To affect prosecution for violation of any other ordinance committed prior to the effective date of the ordinance codified in this chapter; or B. As a waiver of any license or other penal provisions applicable to such violation; or C. To affect the validity of any bond or cash deposit required by any ordinance to be posted, filed, or deposited. All rights and obligations pertaining to the foregoing shall continue in full force and effect.

§ 3.12.200. 3.12.250. Designated penalty.

A. Any person violating Section 3.12.070 shall be guilty of a misdemeanor.

B. Any person violating any other provision of this article or failing to comply with any of the other mandatory provisions thereof shall be guilty of an infraction.

C. The penalty for misdemeanors and infractions is as set forth in Section 1.28.010 (Violations a misdemeanor or infraction).

Chapter 3.16 SCHEDULE OF TAXES
§ 3.16.010. Classifications Generally applicable tax rate.

The collector shall determine the license classification for each business in the city. The classifications are defined as follows:

A. The “General/Retail” classification includes persons or firms carrying on the business of retail sales, restaurants, wholesale trade, manufacturing, service stations, or similar general business activities. Public utilities and administrative headquarters shall be classified under the General/Retail business classification. The General/Retail business classification includes, but is not limited to, the following types of businesses: Retail Store, Restaurant, Wholesaler, Manufacturer, Service Station, Convenience Store, Grocery Store, Public Utilities, and Administrative headquarters.

B. The “Professional and Advanced” classification includes persons or firms carrying on businesses that provide services requiring rigorous training through higher education, vocational institutions, certification, licensing, or specialized professional skill, and advanced services, including businesses in research and development, scientific, technical, and similar fields. The Professional and Advanced classification includes, but is not limited to, the following types of businesses: Doctor’s Office, Law Office, Consulting 204 of 245

27 Firm, Accounting Firm, Engineering Firm, Architectural Firm, Software Development, Research and Development, Scientific Services, Technical Services, Financial Advisory Services, Medical Office, Dental Office, and Real Estate Agents and Brokers.

C. The “Real Property and Rental Activities” classification includes persons or firms carrying on the business of leasing, renting, or otherwise providing the use of real property to another individual or entity for compensation. The Real Property and Rental Activities classification includes, but is not limited to, the following types of businesses: Commercial Leasing, Residential Rental, Parcel Leasing, Hotelier, Apartment Rental, Office Space Rental.

D. The “Services” classification includes persons or firms carrying on service-based businesses that generally require minimal to no higher education, formal training, certification, or professional licensing. The Services classification also is the default category for any business that is not specifically classified under another classification in this article. The Services classification includes, but is not limited to the following types of business: Administration Office, Advertising - Agency, Advertising – Billboards or reader boards, Ambulance - Emergency, Artist & Designer, Automotive - Carwashes & Detailing, Beauty Parlor and Salons Dry Cleaning Security and Patrol Land Developers and Brokers.

E. The “Contractors” classification includes persons or firms that are carrying on the business of a contractor, subcontractor, or builder, particularly the construction or repair of any buildings. The Contractors classification includes, but is not limited to, the following types of businesses:  Contractor - Electrical, Contractor - General, Contractor - HVAC, Contractor - Landscape, Contractor - Masonry, Contractor - Plumbing, Contractor - Roofing,  Contractor - Signs,  Contractor – Specialized. § 3.16.020. Tax Rates.

A. All businesses subject to this article must pay a license tax based on their assigned business classification and the applicable gross receipts rate.

B A licensee must pay a license tax for each tax year based on gross receipts derived from business activity in the city.

C. If the licensee's gross receipts are $75,000 or less, the licensee must pay a flat license tax of $75.

D. If the gross receipts are greater than $75,000, the license tax shall be calculated as follows:

1. Take the total gross receipts and subtract $75,000.

2. Apply the rate corresponding to the licensee's business category to the remaining gross receipts, as follows:
a. General/Retail: $1.00 per $1,000 of gross receipts above $75,000. b. Professional and Advanced: $2.00 per $1,000 of gross receipts above 205 of 245

28 $75,000.
c. Real Property and Rental Activities: $3.00 per $1,000 of gross receipts above $75,000.
d. Services: $1.50 per $1,000 of gross receipts above $75,000. e. Contractors: $2.00 per $1,000 of gross receipts above $75,000.

3. Add $75 to the amount calculated in the preceding paragraph to account for the first $75,000 in gross receipts.

E. Gross receipts are measured by the licensee's total gross receipts derived from business conducted in the city for the previous tax year, except when the licensee did not operate in the city for the entirety of the previous tax year, in which case the tax is measured by the licensee's gross receipts derived from business conducted in the city for the current tax year.

A. Every person having a fixed place of business transacting, engaging in or carrying on a business in the city, except a business as to which the tax rate established by another section of this article is made specifically applicable, shall pay a business license tax based upon the annual gross receipts of such businesses as follows:

Gross Receipts Annual Tax
Less than $75,000 $75.00
$75,000 or more, but less
than
$100,000
$100.00
Over $100,000 $110.00, plus $5.25 for each additional
$5,000 or fraction thereof up to
$500,000
Over $500,000 $530.00, plus $4.00 for each additional
$5,000 or fraction thereof up to
$1,000,000
Over $1,000,000 $930.00, plus $2.75 for each additional $5,000 or fraction thereof up to
$5,000,000
Over $5,000,000 $3,130.00, plus $1.65 for each
additional
$5,000 or fraction thereof
B. Persons having a fixed place of business selling at retail any goods, wares or merchandise which are classified under "retailing industries" in the most recently published annual statement studies published by Robert Morris and Associates may be entitled to a credit against the foregoing annual tax if:

1. The most recent average cost of sales for the retailing industry in which such business is categorized is greater than the average cost of sales for all 206 of 245

29 retailing industries studied; and

2. The most recent average operating profit for such retailing industry is less than the average operating profit for all retailing industries studied. The credit allowed shall be equal to the sum of:
a. The difference between the foregoing average cost of sales figures; and b. The difference between the foregoing average operating profit figures. The determination of the average costs and profits for various industries shall be made with reference to said publication of Robert Morris and Associates. The determination as to the appropriate category in which a particular business is to be placed shall be made with reference to the Standard Industrial Classification Manual. The credit allowed shall be calculated to the nearest 0.1%. § 3.16.015. Central administrative offices—Auxiliary units—Manufacturing.

A. Every person who, at a fixed place of business within the city, transacts, engages in or carries on any central administrative office, auxiliary unit or manufacturing establishment shall pay an annual license tax based upon the area of the place of business occupied and the average number of persons employed, as follows:

Area of Place of Business Occupied Annual Tax
999 square feet or less $150.00
1,000—2,499 square feet $250.00
2,500—4,999 square feet $350.00
5,000—9,999 square feet $550.00
10,000 square feet or more $850.00

Number of
Employees
Additional Annual Tax
1—10 $7.50 per employee
11—25 $75.00, plus $5.00 for each employee in
excess of 10
26—50 $195.00, plus $4.00 for each employee in
excess of 25
51 or more $350.00, plus $3.00 for each employee in
excess of 50
If the nature or method of operation of any such central administrative office, auxiliary unit or manufacturing establishment is such that gross receipts may be attributable to such office, unit or establishment, such business shall be taxed pursuant to Section

3.16.010 if use of that section as a basis for calculation of the tax would produce a higher tax than this section.

The terms "central administrative office," "auxiliary unit" and "manufacturing establishment" shall have the meanings and descriptions set forth in the Standard Industrial Classification Manual and in Sections 3.04.030 and 3.04.070 of this code. 207 of 245

30 § 3.16.020. Amusement concessions.

Every person conducting any amusement concession, not in conjunction with a carnival or fair, shall pay a license tax for each concession and device as follows:

Type of Concession Quarterly
Tax
A. Merry-go-round, Ferris wheel, dodgem, swing or other mechanical device for the carrying of passengers
$75.00
B. Ball and ring throwing games, spin-the-wheel,
mechanical and electrical games, shooting gallery,
keno, lotto and similar games of chance
$50.00
C. Sales of merchandise or foodstuffs, not in connection with any game of chance
$30.00

§ 3.16.030. Apa rtments and rooming houses.

Every person conducting the business of apartment house or rooming house shall pay an annual license tax of a fifty dollar base fee and one dollar for each room, based on a three room minimum.
§ 3.16.040. Commercial property rental.

Every person conducting the business of commercial property rental shall pay an annual license tax of a fifty dollar base fee and ten dollars for up to the first one thousand square feet and ten dollars for each additional one thousand square feet of property available for commercial rental.
§ 3.16.050. Bowling alleys and similar games.

Every person conducting a public bowling alley, skee ball, bat ball or other similar device, equipment or means of entertainment shall pay an annual license tax of forty dollars for each alley.
§ 3.16.060. Boxing or wrestling exhibitions.

Every person staging a boxing or wrestling exhibition shall pay a license tax of two hundred dollars for each such exhibition.
§ 3.16.070. Carnivals and circuses.

Every person conducting any carnival, circus, menagerie, wild west show, rodeo or any other like or similar exhibition or amusement shall pay a license tax of three hundred dollars for the first day and seventy -five dollars for each additional day, payable in advance.

§ 3.16.030. 3.16.080. Gambling clubs.
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31 Every person, corporation, partnership or other entity conducting the business of a gambling club shall pay a quarterly tax in advance, and due on January 1st, April 1st, July 1st and October 1st of each calendar year. Commencing January 1, 1995, the tax per quarter shall be calculated as follows:

Tables Permitted by Gambling Club License Quarterly Tax Per Table Minimum 10 $400
11 to 15 $1,200
16 to 20 $1,800
21 to 25 $2,400
26 to 30 $3,000
31 to 35 $3,600
36 to 40 $4,200
41 to 45 $4,800
46 to 50 $5,400
51 to 55 $6,000
56 to 60 $6,600
Beginning with the above schedule, the tax paid by gambling clubs shall automatically increase July 1st of each year, commencing July 1, 1995, by the greater of two percent or the average of the annual percentage increase in the All Urban Consumer Price Index for the San Francisco/San Jose/Oakland area for the months ending February 28th (or 29th) and April 30th.

Notwithstanding the above, in the event a gambling club operator reduces the number of tables operated, the amount of tax paid shall be reduced accordingly, except that in no event shall the applicable tax fall below the amount of tax upon one-half the highest number of tables operated. (For example, if a gambling club operator reduces the number of tables operated from forty to ten, the tax liability shall be based upon twenty tables.) The amount of tax paid under this provision shall be based upon the above schedule and successor schedules as the tax is automatically increased each year. § 3.16.090. Ele
ctrical musical devices.

A. No person shall operate, maintain or permit to be operated or maintained in any place of business or premises open to the public and occupied by or under the control of such person any electrical musical device without having first applied for and received a license for each electrical musical device so operated and maintained.

B. Application for such license shall be made to the tax collector, upon a form to be provided by such officer, and shall be accompanied by a business license tax of twenty-five dollars for any fiscal year within which it is proposed to operate or maintain any such device, at the time of such application. § 3.16.100. Mechanical, electronic and video amusement devices.

A. No person shall operate, maintain or permit to be operated or maintained in any 209 of 245

32 place of business or premises open to the public or under his or her control any mechanical amusement device without first having applied for and received a license therefor.

B. Application for such license shall be made to the tax collector, upon a form to be provided by such officer, and shall be accompanied by a business license tax of thirty dollars for each such device for any fiscal year within which it is proposed to operate or maintain any such device.

C. Each license and the application therefor shall specify the person to whom such license is issued, a description of the device, with the manufacturer's name and serial number, to which the same shall exclusively apply.

D. Such licenses shall not be transferable either from person to person nor from one device to another.

E. Any mechanical amusement device operated or maintained in violation of this section shall be a public nuisance and subject to abatement as such. § 3.16.110. Nonresident contractors and other businesses.

Every person not having a fixed place of business in the city who:

A. Engages in the business of contracting within the city; or B. Engages in a business within the city not specifically licensed by another section of this chapter shall pay a license tax of seventy-five dollars per year. § 3.16.120. Peddlers and solicitors.

A. Every person who conducts the business of peddler or solicitor shall pay a business license tax of forty dollars per day for the first day and ten dollars per day thereafter; provided, that if the tax collector determines pursuant to Section

3.08.130 that such tax places an undue burden on interstate commerce he or she may adjust the tax to be based upon gross receipts pursuant to Section 3.16.010 (Generally applicable tax rate) measured upon business done within the city, or as otherwise authorized pursuant to Section 3.08.130 (Interstate commerce —Relief from undue burdens).

B. Persons maintaining a regular route of established deliveries of food products shall pay the annual license tax required under Section 3.16.010 (Generally applicable tax rate).

C. This section shall not apply to persons soliciting or peddling goods solely to merchants with a fixed place of business for the purpose of resale. § 3.16.125. Vehicle vendors.

Every vehicle vendor who engages in business in the city shall pay a license tax of seventy-five dollars per year.

§ 3.16.130. Pu blic dances—Place of public dance.
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33 A. Every person conducting a public dance, as defined in Section 4.08.020 (Definitions) of Chapter 4 (License and Regulations), shall pay a business license tax of fifty dollars.

B. Every person operating a business in which public dancing is performed, conducted, allowed, carried on or proposed to be performed, conducted, allowed or carried on not less than three times or on three days within a period of six months shall pay a business license tax as follows:

1. If the dancing is accompanied by mechanized music, an annual tax of two hundred dollars; or

2. If the dancing is accompanied by live or unmechanized music, an annual tax of four hundred fifty dollars.
§ 3.16.140. Shuffleboards.

Every person engaged in the business of operating or maintaining and offering for use by patrons any shuffleboards or other game or amusement device other than mechanical amusement devices otherwise licensed, shall pay in advance an annual license tax of fifteen dollars for each such game.
§ 3.16.150. Temporary vendors.

Every person conducting the business of temporary vendor shall pay an annual business license tax of forty dollars for the first day and ten dollars per day for each subsequent day.
§ 3.16.160. Condominium projects.

A. Tax Imposed—Purpose. A business license tax is imposed solely for revenue purposes upon the development and construction of all condominium projects, in the sum of one thousand dollars per planned salable condominium unit.

No tax shall be imposed upon the development and construction of a condominium unit for which a completed sale or transfer of interest to the purchaser or occupant has occurred.

B. Condominium License.

1. A condominium license shall be issued by the director of finance upon the payment of the required license tax provided herein, or upon execution of an agreement between the city and the owner or owners of record of all property within the condominium project, approved as to form by the city attorney and approved as to substance by the city council, agreeing to pay the tax either wholly or partially on a deferred basis.

2. Such agreement may provide for an initial payment, periodic payments on specific dates, payments contingent upon sales of units or any combination thereof.

3. Such agreement shall require that any deferred payments be in such amounts as to guarantee that the city shall receive a sum at least equal to the amount it would have received if the total amount of the tax had been paid initially without such an agreement and had been prudently invested in interest bearing 211 of 245

34 accounts as authorized by law.

4. Such agreement shall provide further that the owner shall furnish to the city a faithful performance bond issued by a corporate surety authorized to do business in the state, or an instrument of credit for one or more financial institutions subject to regulation by the state or federal government, or such other security instrument as may be approved by the city attorney guaranteeing payment of the tax.

C. Failure to Obtain License Unlawful. It is unlawful to engage in, permit, suffer or assist in the construction, development or occupation of any condominium project or condominium unit for which a license has not been obtained as provided in this section.

D. Failure to Pay License Tax — Denial of Permits. No permit for building, construction, demolition, grading, subdividing, condominium conversion, variance, conditional use permit or occupancy shall be granted unless the license provided for in this section is obtained. Notwithstanding any other provision of law, no occupancy permit may be obtained under any circumstances until the condominium business license tax has been paid. A certificate of occupancy is required for the occupancy of any condominium unit. Separate occupancy permits may be granted upon separate payment of the required license tax.

E. Remedies of This Section — Supplementary and Cumulative. The remedies for failure to pay the tax imposed by this section are supplementary to any other remedy provided by law for the failure to pay a business license tax and are also cumulative both with regard to each remedy provided by this article and by law.

F. Tax Refund. If the condominium project is abandoned before substantial work has begun in the case of a condominium project described in subsection A of Section

3.04.100 (Condominium project) of Chapter 3.04 (Definitions), i.e., new development, or before the issuance by the California Real Estate Commissioner of a Public Report in the case of a conversion project described in subsection B of Section 3.04.100 (Condominium project) of Chapter 3.04 (Definitions), the tax paid shall be refunded to the person who paid it upon his or her filing of a statement that he or she has abandoned the project, and upon his or her relinquishment of the issued condominium license. In the event of any refund, it is unlawful for any person to proceed with the project without first applying for and receiving the applicable condominium business license, and payment of the business license tax is required for the issuance of a condominium business license. In the event such refund is requested, the matter shall be referred to the city council for determination of a reasonable amount to cover the cost of processing the application.
§ 3.16.170. Single-family residential structures.

A. Tax Imposed — Purpose. A single- family residential business license tax is imposed solely for revenue purposes upon the development and construction of all single-family residential structures in the sum of one thousand dollars per planned salable unit.

B. Exceptions. No such tax shall be imposed upon the development or construction of any such single- family residential unit for which a completed sale has occurred or for which a condominium license tax has been paid pursuant to Section

3.16.160 (Condominium Projects) of Chapter 3.16 (Schedule of Taxes). Such tax shall 212 of 245

35 not be applicable to any person constructing no more than one single-family residential structure during any one-year period for his or her own personal residence.

C. Single-Family Residential Business License. A single- family residential business license shall be issued by the director of finance upon the payment of the required license tax provided herein.

D. Failure to Obtain License Unlawful. It is unlawful to engage in, permit, suffer or assist in the construction, development or occupation of any single- family residential structure for which a license has not been obtained as provided in this section.

E. Failure to Pay License Tax — Denial of Permits. No permit for building, construction, demolition, grading or any final subdivision map, shall be granted or approved unless the license provided for in this section is obtained.

F. Remedies of This Section — Supplementary and Cumulative. The remedies for failure to pay the tax imposed by this section are supplementary to any other remedy provided by law for the failure to pay a business license tax and are also cumulative both with regard to each remedy provided by this article and by law.

G. Tax Refund. If the project involving the development and construction of a single-family residential structure is abandoned before substantial work is done, and any building permit issued to authorize such construction and development is revoked or otherwise terminated, the tax paid shall be refunded to the person who paid it upon his or her filing of a statement that he or she has abandoned the project, and upon relinquishment of his or her single-family residential business license. In the event of any refund, it is unlawful for any person to proceed with the project without first applying for and receiving the applicable single-family residential business license, and the payment of the business license tax is required for the issuance of the license. In the event such refund is requested, the matter shall be referred to the city council for determination of a reasonable amount to cover the cost of processing the application.
§ 3.16.040. 3.16.180. Airport parking facilities.
"Airport parking facility" means any privately owned or operated facility with the purpose of providing, for any form of consideration, parking or storage of motor vehicles, motorcycles or other similar means of conveyances for persons going to or from the San Francisco International Airport.

Every person, corporation, partnership or other entity conducting the business of an airport parking facility shall pay a quarterly tax due as follows:

The airport parking facility tax shall be eight percent of gross receipts. Said tax shall only be applicable to gross receipts generated by the parking or storage of vehicles at the airport parking facility. Each operator of an airport parking facility shall, on or before the last day of the month following the close of each calendar quarter make a return to the city of the total tax. At the time the return is filed, the full amount of the tax shall be remitted to the city.

Upon finding of public benefit, the city council may, by ordinance, decrease the airport parking facility tax set forth above.”

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36 SECTION 2. Pursuant to Elections Code Section 9217, the City Council may amend the provisions of this Ordinance or any other provision of Chapters 3.04, 3.08, 3.12, and 3.16 and may add new types of businesses to a classification, without voter approval, except that no such amendment that has the effect of increasing the rate of the business license tax above the rates approved in this ordinance for any category or classification of business shall be effective without voter approval. Except as specifically amended in this ordinance, the remaining provisions of Article 1 of Title 3 of the San Bruno Municipal Code shall remain in full force and effect.

SECTION 3. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provisions or application, and to this end the provision of this Ordinance are declared to be severable.

SECTION 4. This ordinance shall take effect January 1, 2027.

Approved by the People of the City of San Bruno at the General Municipal Election Held on November 3, 2026.

_______________________________
Rico E. Medina
Mayor

ATTEST:

________________________________
City Clerk

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THIS PAGE INTENTIONALLY LEFT BLANK
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1 RESOLUTION NO. 2026 - ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO SETTING

PRIORITIES FOR FILING WRITTEN ARGUMENTS AND AUTHORIZING REBUTTALS FOR

A CITY MEASURE THAT MODERNIZES BUSINESS LICENSE TAX
WHEREAS, by prior resolution, the City Council called a general municipal election for November 3, 2026 (the “Election”), to be consolidated with the statewide general election to be held on that same date; and
WHEREAS, by prior resolution, the City Council submitted to the voters at the Election an ordinance that would prohibit the sale of safe and sane fireworks in the City of San Bruno (the “Measure”).

NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of San Bruno, California, as follows:

Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument that it seeks to rebut. The provisions of this Section 2 shall apply only to the Election concerning the Measure set forth in this Resolution and shall then be repealed.
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ATTACHMENT 2
2 ---oOo---
I hereby certify that foregoing Resolution No. 2026 – ___ was introduced and adopted by the San Bruno City Council at a regular meeting on July 28, 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
_________________________________
Lupita Huerta, City Clerk

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 28, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Brian Adam, Assistant to the City Manager
SUBJECT: Create Ad Hoc Subcommittee to Review/Update City Council Policies & Procedures
BACKGROUND:

The latest amendment to Council policies and procedures was in 2023. During the City Council’s Strategic Initiatives and Planning meeting on January 30, 2026, councilmembers considered whether to review and update their policies and procedures.

DISCUSSION:

Council policies and procedures are an essential means of concretely communicating the roles and responsibilities of councilmembers, statutory responsibilities, and how the City makes appointments, handles public meetings, and communicates with staff members. Effective policies and procedures enable the City Council to make effective policy decisions that enable public participation, represent the City, and ensure continuity as membership changes.

Importantly, Council policies and procedures help members of the public understand the City’s decision-making process and how to participate effectively.

Creating an Ad Hoc Subcommittee allows the City Council to conduct regular discussion with staff to bring back a review of policies and procedures or recommendations.

FISCAL IMPACT:

There is no fiscal impact.

ENVIRONMENTAL IMPACT:

The action is not a project subject to CEQA. City Council’s action is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required.

RECOMMENDATION:

Move to create an Ad Hoc Subcommittee to Review/Update City Council Policies and Procedures.
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Item 8d.

Honorable Mayor and Members of the City Council
July 28, 2026

Page 2 of 2 ends

ALTERNATIVES:

1. Direct staff to conduct an independent review and recommendation for City Council policies and procedures.

2. Create no Ad Hoc Subcommittee and conduct no review.

3. Create a subcommittee and hold public meetings to conduct discussions and review of council policies and procedures.

ATTACHMENTS:

1. City Council Policies and Procedures – May 2023

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TY OF SAN BRUNO

CITY COUNCIL

POLICIES AND PROCEDURES
Adopted on May 9, 2023
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ATTACHMENT 1
City Council Policies and Procedures Manual
Adopted on May 9, 2023
2 TABLE OF CONTENTS

Section 1. General Rules .................................................................................................................... 4 A. Preamble ........................................................................................................................................... 4 B. Statutory Authority ........................................................................................................................... 4 C. Quorum ............................................................................................................................................. 4 D. Training Requirements ...................................................................................................................... 5 Section 2. Responsibilities of the City Council ............................................................................ 5 A. Responsibilities of the City Council as the governing body for the City of San Bruno shall be to: ... 5 Section 3. Responsibilities of the Mayor and Vice Mayor ......................................................... 5 A. Responsibilities of the Mayor: .......................................................................................................... 5 B. Responsibilities of the Vice Mayor:................................................................................................... 6 Section 4. City Councilmember Duties .......................................................................................... 7 A. The duties for all Councilmembers (including the Mayor and Vice Mayor): .................................... 7 Section 5. Strategic Initiatives and Goal Setting ......................................................................... 9 Section 6. Advisory Commissions, Boards and Committees ................................................ 10 Section 7. Standing and Ad Hoc Subcommittees of the City Council ................................. 11 Section 8. Appointments to City Commissions, Boards and Committees (CBCs) .......... 11 A. Appointments per San Bruno Municipal Code Process .................................................................. 11 B. Alternative Appointment Process for Commission, Board or Committee Members ..................... 12 C. Appointment Process for SBCF Board of Director Appointments .................................................. 13 D. Recruitment Officer for Commission, Board or Committee Members ........................................... 14 Section 9. Meetings ........................................................................................................................... 15 A. City Council Meeting Dates ............................................................................................................. 15 B. Types of Meetings ........................................................................................................................... 15 C. Meeting Requirements ................................................................................................................... 17 Section 10. Action Minutes ................................................................................................................ 20 Section 11. Public Participation ........................................................................................................ 20

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3 Section 12. Appeals ............................................................................................................................... 21 Section 13. Communication with City Council and Staff ............................................................. 22 Section 14. Communication to the City Council and Use of Social Media ............................. 23 Section 15. Budget Controls for the City Council Budget .......................................................... 24 Section 16. Ceremonial Matters ......................................................................................................... 25 Section 17. Enforcement ...................................................................................................................... 25

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4 Section 1. General Rules

A. Preamble

1. The purpose of this policy and procedure manual is to assure the orderly and efficient conduct of the meetings of the City Council. These policies and procedures are intended to assure the right of the majority of the City Council to decide items of business brought before the Council; and the right of the minority to be heard. These rules are also intended to foster and promote the right of residents to have adequate notification of city council meetings and a fair and reasonable opportunity to be heard.

2. The City Council includes the Mayor and four Councilmembers. The Mayor is elected at-large and serves a two-year term. On March 8, 2022, the San Bruno City Council authorized a conversion to district-based elections. The conversion will take place over two election cycles in 2022 and 2024. In

November 2022, the first Councilmembers for District 1 and District 4 will be elected to serve four -year terms . In November 2024, the first Councilmembers for District 2 and District 3 will be elected to serve four - year terms. District elections do not affect the Mayor’s position.

3. In November 2022, San Bruno voters adopted term limits of no more than 12 consecutive years for the Mayor and members of the City Council. Only terms that begin after November 2022 count towards 12 consecutive year term limit.

B. Statutory Authority

1. These policies and procedures for the meetings of the City Council are adopted in compliance with laws of the State of California, in particular, Government Code Sections 54940 et. Seq. (herein referred to as the “Brown Act”). Whenever these policies are found to be in conflict with the terms and provisions of the Brown Act, the Act shall apply and govern.

Further, the City of San Bruno Municipal Code shall control whenever these rules are found to be in conflict therewith.

C. Quorum

1. A quorum shall be three or more Councilmembers. Policies, goals and priorities for the City of San Bruno shall be established by a majority vote of at least a quorum of the Council unless otherwise required by State law.

2. Per Government Code section 36936, ordinances and resolutions must be adopted by a majority vote of the total membership of the City Council. As such, a majority of the City Council is defined as three of the total five Councilmembers. In limited circumstances, State law requires a super -

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5 majority of the City Council to authorize specific actions. In such cases, a super-majority is defined as four of the total five Councilmembers.

D. Training Requirements

1. Per California Assembly Bill (AB) 1234, each Councilmember shall receive at least two hours of training in general ethics principles and ethics laws relevant to their public service every two years.

2. Per California Assembly Bill (AB) 1661, each Councilmember shall receive at least two hours of training in prevention of harassment, discrimination and retaliation.

Section 2. Responsibilities of the City Council

A. Responsibilities of the City Council as the governing body for the City of San Bruno shall be to:

1. Be stewards of the public interest as the primary concern.

2. Establish clear goals and priorities for addressing short and long -range needs of the community.

3. Adopt policies that define a course of action that shape the City now and in the future.

4. Demonstrate dignity, courtesy, honesty, integrity and respect during every public meeting.

5. Assure the fair and equal treatment of all persons coming before the City Council and Commissions.

6. Value all opinions, be tolerant of new and different ideas, and encourage different viewpoints while being mindful to not unnecessarily prolong discourse, or block consensus or majority action.

7. Strive to keep comments clear, concise, and on topic.

8. Work towards the common good, not personal interests.

9. Start City Council meetings on time.

Section 3. Responsibilities of the Mayor and Vice Mayor

A. Responsibilities of the Mayor:

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6 1. Conduct meetings of the City Council as its Presiding Officer . (SB MuniCode 2.04.120)

2. Ensure that items on the agenda move along without delay or disruption.

3. If necessary, to keep Councilmember questions, and comments from members of the public relevant and on topic.

4. Maintain meeting order and limit meeting disruptions.

5. Convey the Mayor’s positions regarding ceremonial proclamations (or the City’s position, subject to City Council approval).

6. Represent City Government as its chief elected official at community functions, events, meetings, and business outreach and retention visits.

7. Represent the City to officially welcome/thank dignitaries, outside officials and open formal city sponsored gatherings.

8. Appoint Councilmembers for liaison positions to various external government agencies on an annual basis or from time to time as necessary, subject to City Council approval.

9. Convey the Mayor’s position regarding potential federal, state and regional legislative actions on behalf of the Mayor (or the City, subject to Council approval).

10. Make all appointments to and removals from City boards, commissions, and committees, subject to approval by the City Council. Also, see Section 7 in this document and SB MuniCode 2.04.120.

11. To vote as the City’s “voting delegate” at the League of California Cities Annual Conference and other similar meetings. This responsibility may be delegated to another Councilmember, as desired by the Mayor.

12. City letterhead, logo, insignia and brand representing the “Office of the Mayor” may be used in written communications by the Mayor in furtherance of the Mayor’s duties.

B. Responsibilities of the Vice Mayor:

1. Rotation of Vice Mayor will be ranked by time of service on the City Council, with the longest serving member at the top of the rotation, and the newest member placed at the bottom of the rotation. The process is outlined in the San Bruno MuniCode 2.04.110.

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7 2. In the absence or incapacity of the Mayor, or upon specific delegation by the Mayor, to perform the functions of the Mayor and possess all of the powers and duties thereof. (SB MuniCode 2.04.120)

Section 4. City Councilmember Duties

A. The duties for all Councilmembers (including the Mayor and Vice Mayor):

The items listed below are a guideline for all members of the City Council.

1. As independently elected members of the City Council, each Councilmember shall:

i. Treat each other, city employees , and members of the public with dignity, courtesy and respect.

ii. Be attentive to other s and not interrupt or distract during public meetings.

iii. Keep comments during meetings clear, concise, and on-topic; manage meeting time appropriately.

iv. Respect the role of the Presiding Officer in maintaining order during public meetings.

v. Arrive on time for Council meetings, having reviewed meeting materials in preparation for the meeting.

vi. In the absence of the mayor and the vice mayor, the City Council shall select a temporary presiding officer. (SB MuniCode 2.04.120)

vii. Comply with all requirements of the Brown Act when communicating with each other.

viii. At the request of the Mayor, when available, represent the City at ceremonial functions, or at meetings of other agencies or bodies.

ix. Respect the roles of staff in ensuring open and effective government.

2. Additionally, each Councilmember (including the Mayor and Vice Mayor ) shall abide by the following policies:

i. No Councilmember who attends a Closed Session meeting may disclose or discuss any statements, items or documents which were developed for or presented in any Closed Session, except when specifically authorized by State law. Violation of this rule shall be

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8 considered a breach of confidentiality. Violations of closed session confidentiality may include the city obtaining injunctive relief in court and/or referral of the Councilmember to the grand jury. – Government Code Section 54963

ii. Councilmembers may not utilize City letterhead, logo, insignia and brand. Such materials are intended for official communications of the City and their use is delegated to the City Manager and City Attorney, or their designees, or as otherwise provided herein.

iii. Councilmembers shall not attempt to interfere , direct, inhibit, or become involved in administrative functions and operations of the City, unless granted specific permission by the City Manager. (SB
MuniCode 2.12.060)

iv. Councilmembers should respect and adhere to the City’s form of government which is a general -law City operating under a Council - Manager form of government, with the City Council acting as the legislative body of the City. Council is the visionary policy maker; the City Manager is responsible for implementation of the Council’s vision through the administration of staff and resources, subject to the delegation of legislative authority.

v. Councilmembers must not influence or attempt to influence a decision on a matter or project on which they have a conflict of interest.

vi. When using City reporting tools, such as SB Responds , email, or telephonic messages , Councilmembers shall identify themselves when possible commenting on open/archived reports.

Councilmembers shall not attempt to influence staff responses to comments/service requests from the public.

vii. Emails addressed to all Councilmembers by default will be handled by their area representative on the City Council, if it is able to be determined who their representative is.

viii. Councilmembers are encouraged to refer operational and policy interpretation questions on specific matters from residents to the appropriate staff members. Resident concerns/complaints should be referred to the Office of the City Manager for resolution by email to [email protected]
.

ix. Councilmembers will comply with Brown Act communication protocols.

x. Email and any other written communications amongst
Councilmembers on general , non-policy matters shall include a copy

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9 to the City Manager, the City Attorney, or the general City Manager’s Office email account at [email protected] . Additionally, Councilmembers shall be included via a blind carbon- copy (bcc) in order to avoid inadvertent Brown Act violations.

xi. If a Councilmember is unable to attend a specific regional agency meeting that they are the liaison for, they should notify their alternate as soon as possible, and alert the regional agency staff representative of their absence and provide information as to where to send any packet materials.

xii. Use of City offices by the City Council should be limited to official City business review of physical documents and meetings with constituents and staff. City offices shall not be used for campaigning nor any other political or personal purpose. Space at City facilities may be reserved by emailing [email protected]
.

Section 5. Strategic Initiatives and Goal Setting

1. The City Council and individual Councilmembers are often tasked with balancing myriad community needs, concerns, and potential policy directives, and as such the Council agrees to undertake an annual Strategic Initiatives & G oal Setting Process which is designed to:

i. Set a basic framework for action within a specific timeframe; supporting council in allocating time to accomplish the most important tasks and focus on the most critical issues, with less distraction.

ii. Provide clear direction to staff on budgetary guidelines and the City Council’s priorities and initiatives for the upcoming year. This is important because clearly defined goals offer the City Manager and staff a roadmap to meet the expectations of C ouncil and avoid any conflicting priorities that do not meet the collective vision of the Council as a whole.

2. Strategic planning is one of the tools that enable a council to define their vision and determine methods for accomplishing short -term and long -term goals.

Strategic planning and goal setting will be identified during Study Sessions.

3. Each year before the budget sessions, the Council shall hold a Study Session in January to March to review progress on goals previously set , reprioritize existing goals as needed, and define and prioritize new goals and objectives for the City of San Bruno.

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10 4. An update on City Council Strategic Initiatives will be submitted to the City Council on a quarterly basis, but only reprioritized by vote of the Council annually at the City Council Retreat, unless altered as prescribed in Section 5.5.

Section 6. Advisory Commissions, Boards and Committees

1. The City has established several Commissions, Boards and Committees that are advisory to the City Council as a means of gathering community input. Those who serve on Commissions, Boards and Committees are volunteers who have taken their positions in an effort to become more involved with local government and to serve on advisory bodies to the City Council.

2. City Councilmembers are encouraged to not regularly attend advisory body meetings in order to avoid interference in the operation of the advisory body or an appearance of specific City Council direction as to matters under consideration by the advisory body.

3. City Councilm embers who plan to attend Commissions, Boards or Committee meetings shall adhere to the following protocols:

A. When a Councilmember attends a particular Commission, Board or Committee, they may address the body before them, but may do so only when stating that the comments they are about to make do not necessarily reflect the views of the entire City Council, unless they are explicitly referencing an action that was taken by the City Council at a public meeting.

B. Refrain from lobbying any Commission, Board or Committee Member s on behalf of any particular project, in an effort to sway their decision to match that of the Councilmember.

C. Keep political campaign discussions away from the Commission, Board or Committee meetings. For example, i f a Commission, Board or Committee Member is running for a particular elected office, a Council Member may not voice their support of the candidate during any public meeting.

4. Fireworks Permits: As per Section 9C of Resolution No. 2008 – 67 relating to temporary fireworks stands pursuant to San Bruno Municipal Code S ection

6.50.060, “a city council subcommittee may review the applications and the city clerk findings and make recommendations to the city council”. Notwithstanding this provision, the City Council has elected to not establish an annual subcommittee to review fireworks stand permits. Instead, the City Council has directed staff to process the permit applications and calendar action by the City Council pursuant to Section 9D of the same resolution, which states that at a regularly scheduled public meeting, the city council shall determine which applicants shall be granted permits and whether as a “grandfathered permittee” or “lottery permittee.”

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11 Section 7. Standing and Ad Hoc Subcommittees of the City Council

For purposes of the State of California’s open meeting law, the Ralph M. Brown Act (Brown Act), there are two types of subcommittees created by the City Council:
standing committees and ad hoc committees.

City Council committees are generally used to provide more detailed review and analysis of complex issues. Committees make recommendations to the City Council but cannot take formal action on behalf of the City Council.

Per the Brown Act: “standing committees of a legislative body, irrespective of their composition, which have a continuing subject matter jurisdiction, or a meeting schedule fixed by charter, ordinance, resolution, or formal action of a legislative body" are subject to all open meeting requirements.

Ad hoc committees are composed solely of less than a quorum of the City Council and are created for a limited time for a particular purpose, and generally do not have regularly scheduled meetings. Under the Brown Act, ad hoc committees are not required to comply with open meeting requirements.

A. All City Council standing and ad hoc committees shall be established by the City Council and the membership will be appointed by the City Council pursuant to Section 8.

B. Standing and ad hoc committees exist, with the initially appointed membership, until the next annually scheduled City Council assignment process for City committees and regional appointments.

C. Standing and ad hoc committees shall select their own chair during their first meeting. If the committee is unable to select a chair, or if th e timing requires immediate action, the Mayor may appoint a chair from the members.

D. Any action to create a standing or ad hoc committee, appoint new or different members, or modify its duties must be placed on a City Council agenda for action.

E. Standing and ad hoc committees must provide reports to the City Council at a public meeting at least once per calendar year, or from time to time as needed or requested by the City Council.

Section 8. Appointments to City Commissions, Boards and Committees (CBCs)

A. Appointments per San Bruno Municipal Code Process

1. In accordance with the San Bruno Municipal Code, the Mayor shall m ake all appointments to and removals from City boards, commissions, and

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12 committees, subject to approval by the City Council. (SB MuniCode

2.04.120 and CA Gov’t Code §40605)

2. Use of the Alternative Appointment Process for Commission, Board or Committee Members
a. The Mayor may elect to use the Alternative Appointment Processes outlined in Sections 7.B and 7.C.
b. A majority of the City Council may only elect to use the Alternative Appointment Process after the Mayor has proposed an
appointment(s) that the City Council has not approved in accordance with SB MuniCode 2.04.120 and CA Gov’t Code §40605.

3. Removals from City boards, commissions, and committees shall follow the process outlined in S B MuniCode 2.04.120 as well as applicable Federal and State law.

B. Alternative Appointment Process for Commission, Board or Committee Members

Does not apply to San Bruno Community Foundation Board of Director Appointments, see Section 7.C.

Round One: Nominations

o Mayor or Presiding Officer of the Meeting to facilitate nominations

o Council members to be given the opportunity to make a Motion for Consideration for Appointment for any applicant
 Requires a Second

Note: Any applicant that receives a Motion and a Seco nd advances to Round 2 (no vote of the full City Council taken at this time). During the nomination process, Council members will not be called upon in alpha order. Members must ask to be recognized through the Presiding Officer if they would like to make a nomination.

Round Two: Simultaneous Voting Process for Nominees

o City Clerk to call Council members alphabetically, with the Vice Mayor and Mayor last.

o Once called upon, Council members shall vote for their preferred nominee or abstention.

o In the event of a tie or if no single nominee receives three votes from the City Council, the appointment process proceeds to Round Three.  The nominee(s) that receive the lowest number of votes (or are tied for the lowest number of votes) shall be eliminated.

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13 Note: If five nominees each receive one vote, all five nominees advance to Round Three.

Round Three: Simultaneous Voting Process for Nominees, if needed o City Clerk to call Council members alphabetically, with the Vice Mayor and Mayor last.

o Once called upon, Council members shall vote for their preferred nominee or abstention.

o In the event of a tie or if no single nominee receives three votes from the City Council, the appointment process proceeds to Round Four.  The nominee(s) that receive the lowest nu mber of votes (or are tied for the lowest number of votes) shall be eliminated.

Note: If five nominees each receive one vote, all five
nominees advance to Round Four.

Round Four:

Simultaneous Voting Process for Nominees, if needed
o City Clerk to call Counc il members alphabetically, with the Vice Mayor and Mayor last.

o Once called upon, Council members shall vote for their preferred nominee or abstention.

o In the event of a tie or if no single nominee receives three votes from the City Council, the appointment process ends and Council shall provide direction to staff whether to leave the position vacant or conduct a new recruitment process to fill the vacancy.

C. Appointment Process for SBCF Board of Director Appointments

Founded in 2013 by the City of San Bruno, the San Bruno Community Foundation (SBCF) is a 501(c)(3) tax -exempt nonprofit organization. T he SBCF is distinguished from other City CBC’s in that its legal structure is a dependent - nonprofit corporation under the City of San Bruno and SBCF Board members have a legal fiduciary duty to the Foundation (not the City). As such, the City Council has established the following Alternative Process for appointing SBCF Board members, which may be used at the discretion of the Mayor or a majority of the City Council.

1. Advertising for and recruitment of S BCF Board members shall be done in accordance with Section 7D of this document, with the exception that:
o The City Council shall receive all applications.
o The Council may meet to review applications and determine which applicants to invite for an interview.

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14 o The SBCF Board shall select two members to attend and participate in the City Council interview process.
o The appointment process for SBCF Board members shall follow the procedures outlined in Section 7A ( option: Section 7B) of this document.

D. Recruitment Officer for Commission, Board or Committee Members

1. The City Clerk serves as the official Recruitment Officer for members of the CBC’s. As such, the City Clerk is responsible for advertising vacancies (whether scheduled or unscheduled) in conformance with Government Code section 54974, receiving and processing applications, scheduling interviews , and preparing staff reports related to CBC appointments . Additionally, as the CBC Recruitment Officer, the City Clerk is responsible for maintaining the City’s official lists of CBC membership, vacancies, appointment dates , and term expirations.

2. Prior to the end of the term for a filled position or w hen a CBC position is vacated, the City Clerk shall initiate a recruitment , which includes an initial recruitment period of 10 business days or greater, and/ or schedule interviews to fill the position, if there are at least 2 individuals have applied for vacancy.

3. Per Government Code Section 54974 (a), a Notice of Vacancy, shall be posted not earlier than 20 days before, or not later than 20 days after the vacancy occurs. The Notice of Vacancy shall be posted to the City’s website, as well as published on the City’s social media accounts, and the City Clerk’s Office will share the Notice of Vacancy with the City Council during the initial recruitment period, schedule permitting. The initial recruitment period may be extended at the discretion of the City Clerk in the event that fewer than 2 individuals have applied for the vacancy.

4. Per Government Code Section 54974 (a), f inal appointment to the board, commission, or committee shall not be made by the legislative body for at least 10 working days after the posting of the notice in the clerk’s office.

5. Notwithstanding a decision to extend the initial recruitment period, the City Clerk shall furnish all submitted applications to the City Council at the close of the initial recruitment period and each subsequent recruitment period. During the period when the recruitment is extended, if a majority of the City Council requests to interview the applicants, the City Clerk shall work to schedule interviews with the City Council.

6. Unless directed by a majority of the City Council, all CBC applicants shall be given the opportunity to be interview by the City Council.

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15 Section 9. Meetings

A. City Council Meeting Dates

1. Regular meetings of the City Council shall be held on the second and fourth Tuesday, at 7:00 p.m. (SB MuniCode 2.04.020)

2. The second regular meeting shall not be held in December. (SB MuniCode

2.04.020)

B. Types of Meetings

1. Regular Meetings – Agendas for regular meetings shall be released to the public no later than 72 hours in advance of the meeting, as required by the Brown Act and will include the meeting location and access information.

Every effort will be made to release agendas and distribution materials prior to 72 hours before the meeting, when possible.

2. Special Meetings – May be held on a non-regular meeting date and/or time.

Special Meetings may be called with a minimum of 24 hours’ notice, versus the required 72 hours’ notice for regular meetings.

3. Study Sessions – Can occur during a Regular Meeting or a Special Meeting.

They are held for the purpose of providing information to the City Council, typically on issues that are more complex and time-consuming than matters scheduled during a regular meeting agenda. During Study Sessions, Councilmembers may state their individual responses, preferences and questions based on the information provided during the meeting, and the Council may provide direction to staff regarding the discussed topic. For maximum clarity and to minimize any confusion by staff on the direction given by the City Council, all Council direction to staff on study session items will be provided in the standard format that provides a clear direction in a motion, a second and a vote.

4. Closed Sessions – May be scheduled by the Mayor , a majority of the City Council, the City Manager, or the City Attorney. Closed sessions can be part of either a regular or special meeting. All closed sessions shall be noticed and conducted in accordance with the provisions of the Brown Act.

After a closed session, the City Council must reconvene the public meeting to provide a report as required by Government Code Section 54957.1, or report that the City Council took no reportable action in closed session.

Closed sessions may be held to discuss certain matters specified by law, including:

 Personnel matters to consider the appointment, employment, performance, or dismissal of a public employee

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16  Public safety threats
 Labor negotiations
 License applications by persons with criminal records  Real estate negotiations
 Pending and existing litigation

5. A request from a Councilmember (other than the Mayor) for a c losed session for personnel matters to consider the appointment, employment, performance, or dismissal of a public employee, such shall occur during the “Comments from Councilmembers” section of a regular meeting agenda (as per Section 9.C.9 of this policy) and such requests are not required to be published on the printed agenda.

6. Closed sessions (excluding those related to employee performance evaluations) are attended by the City Council, City Manager, City Attorney, and if requested, appropriate management staff or special consultants.

Except for public comment at the beginning of the meeting, C losed Sessions are not open to the public. The City Attorney shall keep a record of the Closed Session, including the votes taken on each closed session item where appropriate. No other notes or minutes of closed session discussions shall be recorded. The record of the votes taken shall constitute the exclusive record of the closed session, shall not be considered a public record, and shall be confidential pursuant to section 54957.2 of the Brown Act. Violations of the closed session confidentiality requirement are serious and may have impacts with respect to litigat ion exposure and represent a violation of the law for the person violating the confidentiality requirement.

For maximum clarity and to minimize any confusion by staff on the direction given by the City Council, all Council direction to staff on closed sess ion items will be provided in the standard format that provides a clear direction in a motion, a second and a vote.

7. Emergency Meetings – Are allowed per the Brown Act when an emergency situation involving matters upon which prompt action is necessary due to the disruption or threatened disruption of the public’s well-being.

8. Accessibility of City Council Meetings – All meetings of the City Council shall be conducted in accordance with the Brown Act (as amended), which guarantees the public's right to attend and participate in meetings of local legislative bodies. Subject to technical constraints and consideration of other factors at the City Manager’s discretion, broadcasting of such meetings shall be conducted as follows:

 Regular Meetings / Special Meetings / Study Sessions : Open to the public for in-person attendance, recorded, televised and/or livestreamed online, and available to on-demand viewing online.

Action minutes prepared and published.

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17  Retreats & Committee Member Candidate Interview ( a type of special meeting) : Open to the public for in- person attendance.

Action minutes prepared and published.

 Closed Sessions: Closed to the public . Action minutes prepared and published, as per applicable laws.

 Emergency Meetings: As directed by the City Manager, as per applicable laws.

C. Meeting Requirements

1. In the event that provisions of the Brown Act are suspended in order to allow for local legislative bodies to conduct meetings telephonically or by other electronic means to comply with public health or emergency orders , councilmembers, staff and members of the public may attend the meeting by video or phone linked to the agenda or watch by livestream when the meeting is not available for in-person attendance at a physical location.

2. Except as otherwise provided in Section 1 above, i f the Councilmember attends a meeti ng telephonically or digitally , the Councilm ember must ensure that:

i. The City Clerk is provided the teleconference/digital address location, and the councilmember must ensure the agenda is posted at that location 72 hours prior to the meeting and is visible 24 hours per day until the meeting is adjourned.

ii. The teleconference location is open and fully accessible to the public, as well as fully accessible under the A mericans with Disabilities Act, throughout the entire meeting.

iii. These requirements apply to private residences, hotel rooms, conference rooms, and similar facilities as well as digital platforms all of which must remain accessible throughout the duration of the meeting, without requiring identification or registration on the part of the public to attend. These rules also apply to the same type of locations outside of the United States.

3. The City Council and members of staff will make every effort to end it s meetings before 11 :00 p.m. At 10:30 p.m. during a regular or special meeting, the City Council will decide by majority vote and announce whether it will begin consideration of any agenda items after 11:00 p.m. and, if so, which specific items will be discussed.

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18 4. It is recommended that a Councilmember or staff notify the Presiding Officer prior to the meeting if they desire to reorder an item on the agenda.

5. Regular meeting agendas will include an item for “Council Committee Report Out”, placed before “Comments from Council members”. This item will be an opportunity to inform the full City Council of significant agenda items or updates from Council subcommittees or ad hoc committees.

For detailed Committee Reports, the Councilmember(s) shall notify the City Clerk at [email protected]
(with a copy to the City Manager and
City Attorney) of the subject of their comments one week prior to the meeting, so that the topic may be placed on the agenda in accordance with the Brown Act. Brief announcements or reports do not need to be placed on the agenda as an item.

6. A City Councilmember may request that the City Council remove an item from the Consent Calendar; however, the Councilmember should strive to notify the City Manager’s Office, via email, of the request no later than noon on the day of the City Council meeting. Given that, from time to time, new information or questions may arise after noon on the day of the meeting, a Councilmember may also request to pull an item from the consent calendar for clarifying questions, or they may have written the City Manager earlier with questions regarding a specific agenda item. The City Manager may report answers for any agenda item q uestions when the item is being discussed during the meeting or provide a written response to the entire City Council (and made available to the public) before the meeting and prior to the close of business for the City Clerk’s Office on the day of the meeting.

7. Council Comments on Agenda Items – No discussion or debate shall be permitted upon items on the Consent Calendar; however, any Councilmember may request that their vote on a particular Consent Calendar item be noted as “Abstain” or “Recuse” due to a potential conflict of interest. In such case, a vote may be taken on the item the Councilmember is abstained from, and a separate vote must be taken for the remaining Consent Calendar items. Alternatively, a Councilmember may announce their recusal or abstention before the vote on the Consent Calendar. In such cases, a vote on the entire Consent Calendar will occur and the official minutes will reflect the Councilmember’s recusal or abstention on the specific items.

8. If a Councilmember would like to pull any item(s) from the Consent Calendar for further discussion at the meeting, they may do so before voting on the Consent Calendar begins . Consent items are meant to address routine items. The Mayor should first ask Councilmembers if they wish to move any consent agenda items to the regular agenda for further discussion. If requested, the Mayor would move the item and open it up for discussion

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19 during the Conduct of Business portion of the agenda, or make it a “parking lot” item for a future agenda. Ideally, Councilmembers should ask for such a move before the meeting so it can be placed on the Conduct of Business agenda before the meeting starts. A dditionally, Councilmembers sh ould strive to notify the City Manager’s Office, via email , of any requests to pull an item from the Consent Calendar by noon on the day of the City Council meeting.

9. Comments from Councilm embers – The purpose of this regular meeting agenda item is to allow the City Council an opportunity to make important city announcements, such as City-sponsored, or City-related public events and pertinent information. Each Councilmember shall strive to make comments that are respectful and benefic ial to the community.

Councilmembers shall refrain from making any campaign announcements or solicit votes for an election-related matter during this agenda item. Each Councilmember shall strive to be brief during this agenda item .

Councilmembers shall notify the City Clerk [email protected] (with
a copy to the City Manager and City Attorney) of the subject of their comments one week prior to the meeting, so that the topic may be placed on the agenda in accordance with the Brown Act.

10. Voting – A motion, second, and a majority vote of the City Council shall be required for any formal action detailed on the agenda. If a motion is stated and there is no second verbally stated, the Mayor must ask the City Council for a second to the motion made. If no second is presented, the motion fails for lack of a second. Any vote of abstention must clearly indicate for the record the basis for the abstention.

Similarly, a motion, second, and a majority vote of the City Council shall be required for any Council direction to staff that occurs during any type of meeting. If direction to staff is proposed through a motion and there is no second verbally stated, the Mayor must ask the City Council for a second to the motion made. If no second is presented, the motion fails for lack of a second. Any vote of abstention must clearly indicate for the record the basis for the abstention.

11. Reconsideration – Once an item has been voted on, it will not be permitted for further discussion, unless a motion for reconsideration is made by a Councilmember who voted in the majority on that item at the same meeting (as per Robert’s Rules of Order).

12. Full Participation - To encourage full participation of all members of the Council, no member or members shall be permitted to monopolize the discussion of the question or agenda item. If a councilmember has already spoken and other members wish to speak, the latter members should be recognized in preference to the member who has already spoken. However,

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20 if no other members seek recognition, the Mayor may recognize the member who has already spoken or make a motion on the item. The Mayor has the responsibility of controlling and expediting any debate or item. It is the duty of the Mayor to keep the subject clearly before the members, to rule out irrelevant discussion, and to restate the question whenever necessary.

13. Questions on Agenda Items - Councilmembers are encouraged to submit any detailed questions on agenda items to the City Attorney or the City Manager at least 24 hours prior to the meeting. Th is will allow senior staff to request information from other City staff that may not be present at the meeting and provide time to formulate a response. If a response is provided to the entire City Council prior to the meeting, State law requires (Government Code Section 54957.5) that the response be made avai lable to the public. This is done by posting the response at C ity Hall and posting the response online. Questions should be emailed directly to the City Attorney and/or to the City Manager’s Office at
[email protected]
.

Section 10. Action Minutes

1. The City Council shall use Action Minutes to record their proceedings.

2. Action minutes shall be defined as decision- only minutes that exclude any discussion that went into making the decision and capture only the conclusion and/or action to be taken. The minutes shall include the definition of action minutes.

3. Motions and votes are outlined in the action minutes.

4. Members of the public /media are authorized to bring personal recording devices to the public meeting, as long as the equipment used does not cause a disturbance or disruption to the official business of the City Council or the official recording and documentation of the meeting by the City or its agents.

Section 11. Public Participation

1. Public Participation - Members of the public are encouraged to participate in the legislative process by either submitting written comments before the meeting or speaking in person during a meeting. The following is a list of rules designed to explain how members of the public may address the governing board:

i. The public is welcome to address the City Council on items that are not listed on the agenda during the Public Comment section of the agenda, which occurs directly before the Consent Calendar is approved.

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21 ii. In the interest of facilitating the Council’s conduct of City business, speakers are provided up to 3 minutes to speak by the Presiding Officer of the meeting. Members of the public may not defer their time to another member of the public. If a speaker decides not to address the Council after submitting a speaker card, they may decline their time when their name is called by the City Clerk.

iii. Those in the audience may not jeer, boo, or applaud if these activities cause any disruption during the meeting, including times when other members of the public are speaking at the podium. If a disruption occurs, which will not allow the meeting to continue unimpeded, the Mayor may recess the meeting. The Mayor also has the right to request removal of any member of the audience who actually disrupts the meeting.

iv. No member of the audience, or person(s) speaking at the podium may approach the dais at any time before, during, or after the meeting.

Any documents being presented to the City Council, or an y Committee, Board, or Commission must be provided to the City Clerk, or staff liaison before public comment.

v. For public comment on items not on the agenda, the Brown Act prohibits councilmembers from discussing or acting upon any matter not agendized pursuant to State Law. Councilmembers and staff may respond briefly to comments by members of the public or ask questions for clarification. The City Council may refer the matter back to staff for a future reply or may direct staff to place the matter on a future agenda.

vi. All statements made to the City Council must be made at the appropriate time of the meeting and may not be shouted from the audience. Any person wishing to address the City Council will be called to the podium at the appropriate time by the Mayor.

Section 12. Appeals

1. Appeals are public hearings and will follow the time allocations for addressing the City Council detailed below, unless otherwise required, or provided by law:

i. Applicant – 10 minutes combined

ii. Appellant – 10 minutes combined

iii. Individual Speakers (public comments) – up to 3 minutes (as per Section 10)

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22 2. Appeals from decisions of the City’s Committees , Boards and Commissions shall appear on the City Council agenda for discussion. The City Council has the option to affirm the action of the commission, modify the action of the commission, refer the matter back to the commission, or revers e the decision, unless otherwise provided by law.

3. Any person that addressed the City Council during one of the 10- minute periods (as an applicant or appellant), may not speak again during the public comment period unless explicitly authorized to rebut or provide clarification by the Presiding Officer of the meeting.

4. Members of the public may not defer their time at the podium to another member of the public. If a member of the public has already addressed the City Council or has a speaker card in queue to address the City Council, they may not speak on behalf of another member of the audience.

Section 13. Communication with City Council and Staff

1. All communications between staff and councilmembers may be determined to be public records.

2. The Council, in adopting this policy, does not waive attorney -client privilege, the attorney work product privilege, or any other privilege associated with a closed session authorized under the Brown Act.

3. All emails sent and received through the City server are retained per the City’s Records Retention Schedule and are subject to the Public Records Act.

4. Members of the public are permitted to email members of the City Council by sending each Council Member an individual email.

5. From time to time, the need for a new City Council Strategic Initiatives or special projects may arise outside of the Council’s annual priority setting process. When this occurs, a Councilmember may request that the topic of their proposed Strategic Initiative be placed under the “Comments from Councilmembers” section on the agenda of regularly scheduled meeting, as described in Section 9.C.9 of this document. At such meeting, the Councilmember shall articulate why the new Strategic Initiative or special pr oject is of critical importance and requires immediate action from the City Council to consider and/or be prioritized above existing Strategic Initiatives. Upon a majority vote of the City Council, the Council may request the City Manager and/or the City Attorney analyze the impact on other priorities if directed to work on the requested item and provide the City Council with an estimated timeframe and resources needed for the work effort at a subsequent Council meeting.

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23 6. Periodically, a member of the City Council may desire for the City Attorney’s Office to conduct detailed/complex legal research on a particular topic or policy area. The Councilmember shall contact the City Attorney t o discuss the topic. If the City Attorney determines that the desired research is a significant endeavor and/or recommends that the item be placed before the City Council for direction prior to initiating the legal research, the Councilmember will need to obtain support from the City Council. This shall be accomplished by under the “Comments from Councilmembers” section on the agenda of regularly scheduled meeting, as described in Section 9.C.9 of this document. The City Attorney will determine if the request needs to be published on the printed agenda. Upon a majority vote of the City Council, the City Attorney will conduct the legal research and report back to the full City Council (a confidential/privileged memo, public report, email, or off- agenda staff report ). The limitations in this paragraph do not apply to legal research and advice regarding conflicts of interest.

7. In the event of an emergency, critical incident or activation of the City’s Emergency Operations Center (EOC), the City Councill will receive instructions and information from the City Manager or a designated liaison. At no time should a member of the City Council attempt to contact or communicate with the Incident Commander or anyone that reports to or is under the direction of the Incident Commander. Additionally, members of the City Council should not go to the scene of an emergency/critical incident and attempt to enter any evacuated or cordoned off area without prior authorization from the City Manager or the Incident Commander. During and immediately following an emergency or critical incident, the City will establish a contact for media inquiries. The Councilmembers shall make every attempt to contact the City Manager, the Council L iaison, and/or the City’s established Media Liaison prior to providing any information on the incident to members of the public or the media.

Section 14. Communication to the City Council and Use of Social Media

1. The following guidelines apply to City Councilmember personal communications including use of various forms of social media, letters to the editor of newspapers, personal endorsements, email, newsletters, participation in public forums or other meetings and the like.

i. Individual City Councilmembers should confirm and clarify that the comments they are about to make do not necessarily reflect the views of the entire City Council. Because members of the public will hear and understand comments by a Councilmember to repres ent City policy and/or the City Council as a whole, it is important that Councilmembers use discretion while engaging with members of the public on any social media/media platform or public forum , regarding matters of City

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24 business or policy. Suggested language for a disclaimer to be used when clarifying opinions or statements are made is:

“I am a City Councilmember of the City of San Bruno. These are my own opinions and they may not represent those of the San Bruno City Council as a whole.”

ii. City Councilmembers are expected to actively protect any information received the course of service as a Councilmember which is considered confidential or protected, such as information that is protected under personnel privacy laws.

iii. City Councilmembers shall not post information, images or icons to any social media platform, which was obtained in their official capacity and not otherwise available to the general public without s pecific confirmation by the City Manager that such information may be used and distributed publicly.

iv. If a City Councilmember creates a post on social media about city business (examples: upcoming meeting dates, public safety issues, etc.), they may not de lete comments made by other users, or block any person who comments on the post(s). City Councilmembers should not block content or users due to a personal dislike of the user, or because of comments the other user makes, or has made.

v. Councilmembers’ use of social media is restricted by AB 992 (Mullin), and is limited to answering questions posed by the public, providing information to the public, or soliciting information from the public regarding a matter that is within the subject matter jurisdiction of the legislative body.

vi. A majority of Councilmembers are prohibited from discussing business of a specific nature that is within the subject matter jurisdiction of the legislative body.

vii. Councilmembers may not directly respond to any communication made, posted, or shared by any other Councilmember regarding a matter that is within the subject matter jurisdiction of the legislative body.

Section 15. Budget Controls for the City Council Budget

1. The annual City budget includes appropriations for City Council expenses and conferences. The amount allocated in the budget should be at least sufficient to cover City Council stipends, as well as limited funding to cover approved attendance at conferences or educational seminars when deemed appropriate.

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25 2. If a City Councilmember wishes to attend a conference, educational seminar or training, they should contact the City Clerk, who will manage reservations for the Councilmember. Any out-of-state conferences or trainings for a Councilmember must be approved by a majority of the City Council during a regular or special meeting before the scheduled conference takes place.

3. If a City Councilmember attends a conference or educational seminar on the City’s behalf, then the Councilmember must present a brief oral report of the conference or seminar at the next regularly scheduled City Council meeting during the “Comments from Council Members” section of the agenda.

Section 16. Ceremonial Matters

1. The City may issue ceremonial proclamations, resolutions or certificates of appreciation when such an issuance positively impacts the community and conveys an affirmative message to residents. It will be the policy of the City Council to process requests for ceremonial documents in the following manner:

i. If the Mayor determines that a request is consistent with the policy stated above, the Mayor can request that the City Clerk prepare the document and coordinate the release of the document, either privately, or at a future public meeting.

ii. The person who submit ted the request must provide specific details regarding the request, including language for a proclamation or resolution, or information for a certificate of appreciation at the time the request is made.

iii. Depending on the nature and time- sensitivity of a particular request, the Mayor may act without full formal concurrence of the City Council when the situation warrants. When there is no formal concurrence the Mayor shall clearly indicate the issue is from the Mayor and not the Council.

Section 17. Enforcement

1. Councilmembers have the primary responsibility to assure that these practices and protocols are understood and are followed. Councilmembers entering office shall sign a statement affirming receipt of the Council Policies and Procedures Manual.

All Councilmembers shall also sign a statement affirming receipt when the Manual is amended.

2. The following sets forth the procedures to be followed when one or more Councilmembers allege that a Councilmember has violated this Policy or any other applicable City policy.

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26 i. A majority of the City Council may request, at a public meeting, that an item be agendized at a regular or special meeting to discuss an alleged violation of this Policy. Such requests shall occur during the “Comments from Councilmembers” section of a regular meeting agenda (as per Section 9.C.9 of this policy) and such requests are not required to be published on the printed agenda.
ii. After consideration of the alleged violation, the City Council may direct that an investigation be conducted.
iii. The City Council may also schedule a hearing and provide the councilmember who is the subject of the allegation with the opportunity to submit a response in writing and/or orally at the hearing. iv. The City Council may consider admonishing the councilmember by issuing a statement of disapproval, imposing a sanction such as removal from committee assignments, and/or censuring the councilmember by adopting a formal resolution (with specific restrictions, as applicable).

3. The aforementioned shall not be used for violations of State or Federal laws, as such laws are subject to separate penalty and enforcement provisions outside of the City’s purview.

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