Santa Ana City Council
May 6, 2025

REQU
EST FOR PROPOSALS NO. 23-165
FOR
BUSI

NESS LICENSE TAX & FEE SOFTWARE PROGRAM

CITY OF SANTA ANA
KEY RFP DATES: The schedule below is tentative and subject to change at the discretion of City, with appropriate notice to prospective Proposers.

Issue Da
te: Monday, November 6, 2023
Mandatory Pre-Proposal Meeting: Thursday, January 11, 2024; 2:00 P.M.

Deadline for Questions: Monday, January 15, 2024; 4:00 P.M.

Proposal Due Date: Wednesday, January 31, 2024; 4:00 P.M.

EXHIBIT 2

CITY OF SANTA ANA

TABLE OF CONTENTS

I. BACKGROUND ........................................................................................................................... 3 II. MANDATORY/OPTIONAL PRE-PROPOSAL MEETING ............................................................. 4 III. OVERVIEW OF PROJECT .......................................................................................................... 5 IV. SCOPE OF SERVICES ............................................................................................................... 6 V. TERM OF AGREEMENT ............................................................................................................. 6 VI. MINIMUM QUALIFICATIONS ...................................................................................................... 6 VII. RESPONSE TO RFP .................................................................................................................. 6 VIII. CERTIFICATIONS (ATTACHMENTS) ....................................................................................... 10 IX. REFERENCES .......................................................................................................................... 11 X. MINIMUM SCOPE AND LIMIT OF INSURANCE ....................................................................... 11 XI. SELECTION PROCEDURES & CRITERIA ............................................................................... 14 XII. WITHDRAWALS........................................................................................................................ 15 XIII. GENERAL TERMS AND CONDITIONS .................................................................................... 15 XIV. AWARD OF AGREEMENT ........................................................................................................ 20 XV. IMPLEMENTATION ................................................................................................................... 20

EXHIBITS
Exhibits provided herein for Proposers’ reference only.

EXHIBIT I – SCOPE OF SERVICES
EXHIBIT II – SAMPLE AGREEMENT
EXHIBIT III – CITY OF SANTA ANA GENERAL BUSINESS LICENSE TAXATION OVERIEW EXHIBIT IV – CITY OF SANTA ANA MEDICAL MARIJUANA AND COMMERCIAL CANNABIS BUSINESS

LICENSE TAXATION OVERIEW
EXHIBIT V – CITY OF SANTA ANA GENERAL UTILITY USERS’ TAXATION OVERIEW EXHIBIT VI – CITY OF SANTA ANA GENERAL HOTEL VISITORS’ TAXATION OVERIEW EXHIBIT VII – CITY OF SANTA ANA GENERAL TOURISM MARKETING DISTRICT OVERIEW EXHIBIT VIII – CITY OF SANTA ANA PROACTIVE RENTAL ENFORCEMENT PROGRAM (PREP) EXHIBIT IX – SANTA ANA MUNICIPAL CODE – CHAPTER 21 LICENSES EXHIBIT X – SANTA ANA MUNICIPAL CODE – CHAPTER 35 TAXATION, ARTICLE 5 HOTEL VISITORS’ TAX AND ARTICLE 6 UTILITY USERS TAX CODE

ATTACHMENTS

A PROPOSER’S CERTIFICATION, PROPOSAL ITEM PRICING

B REFERENCES
C PROPOSER’S STATEMENT

D NON-COLLUSION AFFIDAVIT

E NON-LOBBYING CERTIFICATION

F NON-DISCRIMINATION CERTIFICATION
G PROPOSERS’ QUESTIONNAIRE
I. BACKGROUND
Incorporated in 1886, Santa Ana, a Charter City, established a Council -Manager form of government in 1952. The City Council is composed of seven members; the Mayor elected at large and six Council members elected by ward, who appoint the City Manager, City Attorney and Clerk of the Council. The City of Santa Ana (City) is a full -service City with a diverse population of approximately 335,000.

The City’s eleven agencies provide all the traditional municipal services, as well as water utility, library system, 20-acre zoo, City Jail, Police Department, and contracts with the Orange County Fire Authority for provision of fire services. The City employs 1,178 authorized full-time positions and has an annual citywide budget is $764.2 million, including the General Fund budget of $414 million.

The City of Santa Ana is located 10 miles inland from the Pacific Ocean, 33 miles southeast of Los Angeles and 90 miles north of San Diego. The City, which is the county seat of Orange County, encompasses an area of approximately 27 square miles and is the 11th lar gest by population in California.

Treasury & Customer Service Division : The Finance & Management Services Agency, Treasury & Customer Service Division (“Division”), is responsible for overseeing and providing revenue collection for a variety of City revenues, including but not limited to taxes, charges, fees, fines, deposits and reimbursements. In support of this mission, the Division uses a mix of internal staff, in-house custom software, external consultants/vendors to ensure that the City recovers all revenues that are due, including but not limited to: business license taxes, medicinal and commercial cannabis taxes, utility users’ taxes, hotel visitors’ taxes, tourism marketing district assessments, business improvement district charges, and proactive rental enforcement program (“PREP”) charges. These revenue programs are performed within the Division’s Tax & Licensing Section (“Tax & Licensing”).

Tax & Licensing Program : In FY 2022- 23, as part of the Tax & Licensing Program , the City averaged over 30,200 active business licenses annually and collected over $16,289,000 in general business license tax revenue, while at the same time averaging 99 medicinal and commercial cannabis business licenses annually with combined medical marijuana and commercial cannabis business license tax revenues of $22,280,000. A total of approximately $38 million annually in combined business license tax revenues, was fully processed utilizing the City’s legacy business license tax software (Business Tax System or “BTS”), an internally developed and supported Active Server Pages (ASP.NET) application.

As an adjunct to the Tax & Licensing Program, BTS also supports the Planning & Building Agency’s PREP charges, averaging 7,250 accounts and generating approximately $860,000 annually. This is currently accommodated via a BTS module handling PREP Customer Service Information and PREP Charge Fee billing. This module is scheduled for integration with the City’s incoming Land Management System (LMS) , Clariti. Lastly, in prior years, the BTS had an integrated Downtown Business Improvement District (“BID”), which functioned as a surtax charge and was subject to the general requirements of the Business License Tax Code and BTS software. Presently, the C ity does not have an active BID, but software procured through this RFP should be able to support such an element if it returns in the future.

In addition to business license taxes, the Tax & Licensing Section receives mont hly “trust tax” filings from 351 Utility Users’ Tax (UUT) service providers generating revenues of $28,543,740 annually; plus 34 Hotel Visitors’ Tax (HVT) hotel/motel operators generating revenues of City of Santa Ana
RFP No. 23-165

$10,477,648 annually; added together with 17 Tourism Marketing District (TMD) hotel/motel accounts generating assessments of $1,758,004,000 annually. These filings are supported via a corresponding set of in-house developed legacy solutions written as ASP.NET applications.

Business License Tax Program Changes : The City’s Business License Tax Program is anticipated to undergo significant changes to the underlying Business License Tax Code, last comprehensively revised in 1987, and supplemented generally in the intervening years by a variety of ordinance amendments and two specifically cannabis related Voter Ballot Measures in 2014 (medical marijuana) and 2018 (commercial cannabis).

In addition, a third Voter Ballot Measure (Measure W) was recently approved by Santa Ana voters and became effective in January 2023. The measure accomplishes the following:

1. R estructure non-cannabis business license tax rates and charges, with the aim to achieve an overall net revenue neutral result;

2. I mplement a broad Tax Holiday Program for unlicensed, past due, and under - assessed businesses (effective 18-month duration); and

3. A lign with closely associated existing provisions of the City’s Business License Tax Code, Santa Ana Municipal Code (SAMC) Chapter 21.

For more information on Santa Ana’s Measure W, please visit ( https://www.santa- ana.org/business-tax-equity-and-flexible-tax-holiday-ballot-measure/)

II. MANDATORY PRE-PROPOSAL MEETING
A mandatory virtual pre-proposal meeting will be held on the date and time specified on the cover page of this RFP.

Failure to attend this meeting shall result in your firm being disqualified from proposing.

Registration Link https://zoom.us/meeting/register/tJMkduivrDkvH9UIUgNLtLGM2Du2PdlCTyIz

Meeting Link:
https://zoom.us/j/97911722551

Meeting ID: 979 1172 2551
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RFP No. 23-165

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Meeting ID: 979 1172 2551

Find your local number: https://zoom.us/u/adu4z4ID4W

For virtual meetings sign in will be required with your name and company in the “Chat” box.

Please make sure you are available to do so if signing on to the meeting through your phone or in the field.

III. OVERVIEW OF PROJECT – SUMMARY REQUIREMENTS
The City of Santa Ana (City) is seeking proposals from qualified firms and organizations (Proposers) to prov ide the Finance & Management Services Agency - Treasury & Customer Service Division with a solution, implementation and maintenance services for a comprehensive business license software platform system, capable of integrating with existing programs.

The term “Vendor”, “Proposer”, and “Contractor” shall refer to any legal entity or entities submitting a proposal in response to this Request for Proposals (RFP).

Proposers must have extensive experience in providing web -based Business Lic ensing Tax Software/Platforms.

The objective of this RFP is to identify:

1. A robust and user -friendly web- based software system with a strong outward facing customer e-commerce front end platform that will meet the City’s current and future needs associated with issuing, managing, and renewing business licenses and related modules/programs;

2. A software platform that can effectively handle a variety of pre-licensing activities relating to identified unlicensed businesses and track correspondence/contacts with such businesses through to licensure and receipt of revenues;

3. A software program that can generate various business license and related statistical and revenue reports, on a scheduled monthly, weekly, daily, and “on- demand” basis for administrative and collection purposes; and

4. A software platform that can be aligned/integrated with the City’s Europay, Mast erCard, and Visa (EMV) Chip and PIN Payment Card Industry Data Security Standard (PCI-DSS) payment compliant system.

City of Santa Ana
RFP No. 23-165

The current system used by the City is a custom -developed application created in the early 2000’s and is stored within the City’s internal servers. The City’s intent is to acquire a configurable, off -the-shelf software platform provided, supported, and maintained by the Proposer.

IV. SCOPE OF SERVICES
SEE EXHIBIT I – SCOPE OF SERVICES

Usage is not guaranteed. Execution of an agreement between the City and successful firm(s) and/or individual(s) does not guarantee work throughout the duration of the contract period .

Numerous factors will be evaluated by the City in its delivery of project and assignments, including technical expertise required.

V. TERM OF AGREEMENT
The anticipated term of the agreement is for an initial period of five (5) years. The City may, at its discretion, extend the agreement with the same or more limited scope of required services for three (3) additional periods , the first for two (2) years, followed by two one (1 ) year optional extensions, upon mutual agreement contingent upon City Council approval, or City Manager or City Attorney authorization, as appropriate . The total term of the awarded agreement shall not exceed nine (9) years.

VI. MINIMUM QUALIFICATIONS
Proposers must have a minimum of five (5) years’ experience providing similar services to other government agencies, preferably of similar size to the City of Santa Ana. Proposers must have successfully implemented similar solutions with at least two (2) other municipalities in the most recent past five (5) years. Proposers must have implemented a similar solution in at least one other government agency in California, regardless of the size of the agency.

VII. RESPONSE TO RFP
A. SUBMITTAL INSTRUCTIONS
It is the responsibility of the Proposer to ensure that any proposals submitted have been uploaded to PlanetBids prior to the RFP due date and time. Proposals, including all required sections and forms, shall be submitted electronically via the City’s Bid Management System, PlanetBids. No other form of submittal will be accepted.

PlanetBids will not accept late proposals and no exceptions shall be made. Proposers will receive an e-bid confirmation number with a time stamp from PlanetBids indicating that their proposal was submitted successfully. The City will only receive and consider those proposals that were transmitted successfully. Submit proposal online at:
http://www.planetbids.com/portal/portal.cfm?CompanyID=20137.

Proposer shall be solely responsible for informing itself with respect to the proper utilization of the bid management system, for ensuring the capability of their computer system to upload the required documents, and for the stability of their internet service. Failure of the Proposer to successfully submit an electronic proposal shall be at the Proposer’s sole risk and no relief will be given for late and/or improperly submitted proposals. Proposers experiencing any technical difficulties with the bid submission process may contact PlanetBids at (818) 992 - City of Santa Ana
RFP No. 23-165

1771. Questions of an operational nature may be directed to the City’s assigned Buyer .

Neither the City, nor PlanetBids, makes any guarantee as to the timely availability of assistance, or assurance that any given problem will be resolved by the bid submission deadline.

Proposals shall NOT be sent via telegraphic, electronic, or facsimile means.

All notifications, updates and addenda will be posted online on PlanetBids at https://www.planetbids.com/portal/portal.cfm?CompanyID=20137. Proposers shall be responsible for monitoring the site to obtain information regarding this solicitation. Failure to respond to required updates may result in a determination of a nonresponsive proposal.

B. COMMUNICATION / CONTACT WITH CITY STAFF
Unless otherwise authorized herein, Proposers who are considering submitting a proposal in response to this RFP, or who submit a proposal in response to this RFP, are only to communicate with the assigned Project Coordinator(s), and no other City staff about this RFP from the date this RFP is issued until a contract is awarded. The City will provide all official communication concerning this RFP in writing via the City’s Bid Management System, PlanetBids.

The City will not be responsible for or bound by any oral communication or any other information or contact that occurs outside the official communication process specified herein, unless confirmed in writing by the designated Project Manager(s).

C. REQUEST FOR INFORMATION OR CLARIFICATION / QUESTIONS Questions regarding this RFP shall be submitted via PlanetBids. Responses to all questions will be posted on PlanetBids no later than the date and time shown at the schedule of key RFP dates on the cover page of this RFP. All prospective Proposers are advised to visit PlanetBids on a regular basis as responses may be posted earlier than the date above (if applicable). No verbal requests or responses will be accepted. Significant interpretations or clarifications will be addressed via addenda to this RFP.

Significant interpretations or clarifications and responses to questions received by the deadline will be addressed via addenda to this RFP, which will be released and posted on PlanetBids under the “Addenda/Emails” tab.

General process questions may be directed to the following:

Jacques Lam
Buyer
Email: [email protected]

D. EXCEPTIONS
Requests submitted for City’s consideration of proposed terms and conditions, including modifications to the City’s RFP and/or Contract terms and conditions must be submitted by the deadline for questions. Such requests should include an attachment in Word or PDF format on formal company letterhead that shows the requested modifications. City may reject or strike any requests for exceptions or additional terms and conditions related to Agreement, RFP, and insurance and indemnification terms and conditions.

E. ADDENDA
Any changes in RFP from the date of release to date of submittal will result in an addendum or amendment . Notification of such addendum or amendment shall be posted on City’s City of Santa Ana
RFP No. 23-165

PlanetBids system, https://www.planetbids.com/portal/portal.cfm?CompanyID=20137.

Proposers shall be responsible for monitoring the site to obtain information regarding this solicitation.

F. UNDERSTANDING PROPOSAL
It is the responsibility of each Proposer to inquire about any criteria, condition, term, provision, or requirement of the RFP that the Proposer does not understand. Responses to inquiries, if they significantly change or clarify the RFP requirements or any aspect of the procurement process, will be forwarded by addenda to all Proposers . The City will not be bound by any oral responses to inquiries . By submitting proposals, Proposers assert that they have fully read the RFP and any addenda issued by the City, the proposed Contract and any other Contract Documents, and affirm that the terms and conditions stated therein are fully understood and are acceptable to the Proposer . Each Proposer accepts the terms and conditions of the Contract Documents and indicates their ability and willingness to perform the requested services under such terms and conditions . Any exceptions to the terms and conditions set forth in the Contract Document shall be submitted to the City by the deadline to submit requests for information or clarification/questions set forth herein.

G. PROPOSAL CONTENTS
Proposals are to be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Colored displays, promotional materials, photographs etc., are not necessary or desired. Emphasis should be concentrated on conformance to RFP instructions, responsiveness to the RFP requirements, and on completeness and clarity of content. Digital dividers and clear organization of content and material are encouraged.

1. Statement of Qualifications (SOQ)
SOQ must include a Table of Contents and be limited to a maximum of 20 pages (excluding City’s required Certifications listed in Section VIII below; Proposal Cover Letter, section dividers, table of contents, front/back cover pages ). The page limitation includes all appendices, attachments, and supplemental information. Additionally, SOQ must include the following:
a. Cover Letter
Proposals shall include a letter signed by a principal or authorized representative who can make legally binding commitments for the entity. Include type of business entity.

Cover Letter shall not exceed one page.

Cover letter must be addressed to the following City Project Manager:

Alejandra Gutierrez, City Project Manager
City of Santa Ana – Finance & Management Agency
20 Civic Center Plaza, First Floor Ross Annex (M-15)
Santa Ana, CA 92702-1964

b. Services Provided
A description of proposed services to be provided and how they meet the needs of the City’s Finance & Management Services Agency as described in Section III – Scope City of Santa Ana
RFP No. 23-165

of Services (Above).

c. Agreement Statement
Proposal shall include a statement outlining your concurrence or concerns with any and all provisions as contained in EXHIBIT II – Sample Agreement of this RFP (if any).
d. Firm and Team Experience
Proposal shall include a profile of the firm’s experience including the following:
i. A general description of the firm, including size and number of employees working directly with the City on this agreement.
ii. Firm’s nearest address serving the City of Santa Ana and headquarters address.
iii. Name and contact information of the supervising Project Manager/Principal Agent, to be assigned to the agreement. The Project Manager/Principal Agent shall be the primary contact person to represent your firm and will be the person to conduct the presentation, if invited to an interview. iv. Resumes for all key staff proposed describing relevant experience. v. Provide work samples, links, and/or screenshots of similar solutions Proposer has successfully implemented at two other similar municipal agencies.

e. Proposed Work Plan
Proposal shall include a statement demonstrating the firm’s understanding of the Scope of Services.

Additionally, proposed work plan shall include Proposers’:
i. Provide a detailed description of the Work plan, Approach, and Timeline that you propose using to meet the objectives described in the Scope of Work.; ii. Suggestions or special concerns the evaluation committee should take into consideration (if any);
iii. Describe the process to be used and the deliverables to be produced iv. Describe the staffing and time frames involved in performing each element of the Scope of Work. Specify the level of involvement, specific tasks, and estimated hours you will require from the City (or end-users). f. References: Attachment B – References shall be submitted for similar p rojects performed for state and/or similar government clients.

2. Cost Proposal
a. Provide a total Project Cost for the Work Plan and Timeline referenced in Section 1.e (Proposed Work Plan). For each primary element or milestone of the Work Plan, detail the staff required, their hourly rate, and estimated hours Proposer shall not include rate ranges or averages.

City of Santa Ana
RFP No. 23-165

b. Annual fee – must include all hosting options available, such as on-site hosting through City servers and off-site hosting via public cloud tools or the vendor’s datacenter.

c. Identify the key cost drivers that you expect to influence the costs of this project and your ability to contain them.
d. Identify and itemize in the Cost Proposal and Alternate Cost Proposal:
i. One-time costs
ii. Fixed, ongoing costs across a nine-year period including:
• any and all categories of license;
• integration;
• support;
• m aintenance; and
• training costs
iii. Fixed rate fees for emergency support for after-hours technological assistance.

Pricing instructions should be clearly defined to ensure fees proposed can be compared and evaluated. Cost Proposal must include a payment schedule if applicable. City reserves the right to negotiate compensation and/or payment schedule prior to award of any resulting agreement.

The City shall not provide reimbursement for travel -related expenses, mileage, parking, lodging, meals, incidental fees, insurance, freight/shipping and handling/delivery, and any other business expenses, supplies and materials related to providing services as specified herein. Additional costs will not be considered and will not be reimbursed by the City, therefore, such costs must be absorbed in Proposer’s cost proposal fee structure.

Any language related to travel reimbursement shall be stricken from the document by the City and if not stricken, shall be deemed invalid.

Proposals shall be valid for a minimum of one hundred eighty (180) days following Proposal deadline. The cost for developing the Proposal is the sole responsibility of the Proposer. All Proposals submitted become property of the City.

VIII. CERTIFICATIONS (ATTACHMENTS)
In addition to the SOQ, Narrative/Technical Proposal, and Cost Proposal, t he following forms, included in this RFP, shall be signed and included as part of the proposal submittal package:
• Attachment A: Proposer’s Certification and Proposal Item Pricing • Attachment B: References
• Attachment C: Proposer’s Statement
• Attachment D: Non-Collusion Affidavit
• Attachment E: Non-Lobbying Certification
• Attachment F: Non-Discrimination Certification
• Attachment G: Proposer’s Questionnaire

City of Santa Ana
RFP No. 23-165

The proposal must be completely responsive to the RFP. Incomplete proposals will be deemed as nonresponsive and will be rejected. The City reserves the right to reject any or all proposals submitted and no representation is made hereby that any commitment will be awarded pursuant to this RFP or otherwise.

PLEASE NOTE: City will not waive notarization requirement when applicable on any of the required attachments.

IX. REFERENCES
Proposer shall provide three (3) references from other similar public agencies for which services similar to those specified in this RF P have been performed, including contact names and telephone numbers. Use ATTACHMENT B – References. The respondent grants permission for the City to contact any individuals listed as references.

Additionally, Proposer shall provide contact information for two (2) municipal agencies, preferably of similar size to the City of Santa Ana, for which Proposer has successfully implemented a similar Business License Taxation software solution that the City may contact for site visits as part of the evaluation process. These municipal agencies may be included as two (2) of the three (3) references required above or in addition to the required references.

City may disqualify a Proposer if:
• References fail to substantiate Proposer’s description of services and deliverables provided; or

• References fail to support that Proposer has a continuing pattern of providing capable, productive, and skilled personnel, or

• City is unable to reach the point of contact with reasonable effort. It is the Proposer’s responsibility to inform the point of contact(s) of normal City working hours.

X. MINIMUM SCOPE AND LIMIT OF INSURANCE
The selected Proposer shall provide the required evidence of insurance coverage as set forth in the standard agreement within ten (10) business days after receipt of Notice of Intent to Award.

Contractor must maintain, for the duration of its contract, insurance coverages as required by the City.

Additionally, Contractor shall provide the following insurance coverage:

Coverage shall be at least as broad as:

1. Commercial General Liability (CGL) : Insurance Services Offic e (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit appl ies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Cyber Liability: Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, City of Santa Ana
RFP No. 23-165

including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.
 Technology Professional Liability Errors and Omissions Insurance appropriate to the Consultant’s profession and work hereunder, with limits not less than $2,000,000 per occurrence. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Vendor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.
• The Policy shall include, or be endorsed to include, property damage liability coverage for damage to, alteration of, loss of, or destruction of electronic data and/or information “property” of the Agency in the care, custody, or control of the Vendor. If not covered under the Vendor’s liability policy, such “property” coverage of the Agency may be endorsed onto the Vendor’s Cyber Liability Policy as covered property as follows

If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the Entity requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Entity.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The Entity, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).

Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be pr imary coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the Entity.

City of Santa Ana
RFP No. 23-165

Waiver of Subrogation
Contractor hereby grants to Entity a waiver of any right to subrogation which any insurer of said Contractor may acquire against the Entity by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Entity has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the Entity. The Entity may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or Entity.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the Entity.

Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non- renewed, and not replaced with another claims -made policy form with a Retroactive Dat e prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work.

Verification of Coverage
Contractor shall furnish the Entity with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to Entity before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them.

The Entity reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Certificate Holder must be addressed as follows:

City of Santa Ana
Risk Management Division
20 Civic Center Plaza
Santa Ana, CA 92702

Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that Entity is an additional insured on insurance required from subcontractors.

Special Risks or Circumstances
Entity reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances City of Santa Ana
RFP No. 23-165

XI. SELECTION PROCEDURES & CRITERIA
A. The City will establish a p roposal review committee. The review committee will evaluate proposals based on the response to the RFP, which includes adherence to outlined directions and format, and the City evaluation criteria set forth below.

B. Proposers will be ranked by the review committee based on the following criteria:

C. A final score will be calculated for each submitted proposal and used to rank Proposers.

Based upon the foregoing criteria, all proposals shall be ranked by score. Only those proposals receiving a score above 70 will be considered for award. The City reserves the right to award the contract to any proposer(s) with a score above 70. The review committee will evaluate proposers based on their response to the RFP and the City evaluation criteria set forth above.

D. The City is under no obligation to accept any proposal and reserves the right to negotiate with respondents as to fees and terms. The City may reject proposals at its sole discretion.

If proposal fails to satisfy any requirements outlined in this RFP , it may be considered non- responsive and may be rejected.

The City shall not be obligated to accept the lowest priced proposals, but will make awards in the best interests of the City after all factors have been evaluated.

CATEGORY POINTS
Responsiveness to RFP
• Proposal’s compliance with the requirements of this RFP. • Scope of Services offered including ability to provide optional services. • The value to any new and/or innovative product or service suggestions or other new ideas and enhancements.
• Proposed innovation and value-added features/offerings

40 Experience of Firm and Personnel
• The experience, resources, and qualifications of the firm and individuals assigned to this account, including manager, supervisor and assigned staff.

25 Cost of Proposal
• Reasonableness of rates and cost for development, integration, support, and maintenance
25 References
• References that are similar in size and project scope to the City.

10 TOTAL POSSIBLE SCORE 100
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The review committee will recommend the qualified Proposers to the City Council or City Manager for award of contract, as appropriate.

E. The review committee may invite the proposers to interview. The City reserves the right to seek additional information from any or all Proposers invited to present proposals. A final score will be calcu lated for each submitted pro posal and used to rank Proposers . City reserves the right to begin negotiations and enter into a contract without holding interviews, or further discussions.

Additionally, the City reserves the right to contact references Proposer has included as successful implementation partners and visit facilities, contact, and/or meet with municipal agency’s Project Managers as part of the evaluation process.

XII. WITHDRAWALS
Proposers are responsible for verifying all prices and information before submitting a proposal.

Prior to the proposal due date, the Proposer or Proposer’s representative may withdraw the proposal by providing written notice of the proposal withdrawal to the City Contact/Project Manager. Verbal or telephonic withdrawals are not permissible.

XIII. GENERAL TERMS AND CONDITIONS
A. AMERICANS WITH DISABILITIES ACT
The awarded Contractor hereby certifies that it will comply, as applicable, with the Americans with Disabilities Act of 1990 (“ADA”), 42 USC §§ 12101 et seq., and its implementing regulations, including Subtitle A, Title II of the ADA. Contractor will not discriminate against persons with disabilities nor against persons due to their relationship to or association with a person with a disability. Any contract entered into by the awarded Contractor (or any subcontract thereof), relating to this RFP, shall be subject to the provisions of this paragraph.

B. CITY BUSINESS LICENSE
The selected proposer must obtain a City of Santa Ana Business License prior to the execution of a contract and must provide a copy to the Buyer assigned to this RFP. The awarded party shall maintain a current business license throughout the term of the resulting contract. Procedure to obtain a City of Santa Ana Business License is available by contacting the Finance and Management Services, Business Tax Office at (714) 647- 5447 or on the City’s website: www.santa-ana.org

C. CITY RIGHT TO REJECT
The City reserves the right to reject any or all proposals submitted and no representation is made hereby that any agreement will be awarded pursuant to this RF P or otherwise. The City reserves the right to accept or reject the combined or separate components of this proposal in part or in its entirety or to waive any minor inconsistency, informality or technical defect in the proposal.

D. CONFLICT OF INTEREST
Contractor shall exercise reasonable care and diligence to prevent any actions or conditions that could result in a conflict with the best interests of the City. This obligation shall apply to the Contractor; the Contractor’s employees, agents, and Subcontractors associated with accomplishing work and services hereunder . The Contractor’s efforts shall include, but not be limited to, establishing precautions to prevent its employees, agents, and Subcontractors City of Santa Ana
RFP No. 23-165

from providing or offering gifts, entertainment, payments, loans or other considerations which could be deemed to influence or appear to influence City staff or elected officers from acting in the best interests of the City.

Each Proposer must disclose any existing or potential conflict of interest relative to the performance of the contractual services resulting from this RF P. Any such relationship that might be perceived or represented as a conflict should be disclosed. The City reserves the right to disqualify any Proposer on the grounds of actual or apparent conflict of interest.

No person, firm, or subsidiary thereof who has been awarded this Contract may be awarded a Contract for the provision of services, the delivery of supplies, or the provision of any other related action which is required, suggested, or otherwise deemed appropriate as an end product of this Contract. Therefore, Contractor is precluded from contracting for any work recommended as a result of this Contract.

E. CONTRACTOR’S EXPENSE
Pre-Contractual Expenses: The City is not liable for any costs incurred by Proposers prior to entering into a formal contract. Costs of developing a response to this RFP, are entirely the responsibility of the Proposer, and shall not be reimbursed in any manner by the City . Pre- contractual expenses are not to be included in the cost proposal. Pre- contractual expenses include, but are not limited to, preparation of the proposal, submission of the proposal and additional information, attendance at pre-proposal conference, negotiating any matter related to this RFP with City, and/or any other expenses incurred by the Proposer prior to the date of award and execution, if any, of the contract.

Other Expenses: The Contractor will be responsible for all costs related to photo copying, telephone communications, fax communications, and parking while on City sites during the performance of work and services under this Contract.

F. CONTRACTOR’S PROJECT MANAGER/KEY PERSONNEL
Except as formally approved by the City, the key personnel identified in Contractor’s proposal shall be the individuals who will actually complete the work. Changes in staffing must be reported in writing and approved by the City. The City shall have the right to re quire the removal and replacement of the Contractor’s Project Manager and key personnel under the awarded contract. The City shall notify the Contractor in writing of such action. The City is not required to provide any reason, rationale, or additional factual information if it elects to request any specific key personnel be removed from performing services under the awarded contract. The City shall review and approve the appointment of the replacement for the Contractor’s personnel. Said approval shall not be unreasonably withheld.

Standards of Conduct: Contractor’s personnel shall be courteous and maintain good working relationships with all stakeholders, state or outside agencies, other team members and staff within the City.

G. COST PROPOSAL
The awarded Contractor agrees to provide the purchased services at the costs, rates, and fees as set forth in their Fee Schedule in response to this RFP. No other costs, rates or fees shall be payable to the awarded Subcontractor for implementation of their proposal.

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H. DATA RETENTION
Contractor shall be responsible for retaining data, records, and documentation for the preparation of required items. These materials shall be made available to and as requested by City.

All materials, documents, data or information obtained from the City Data files or any City medium furnished to Contractor in the performance of an awarded contract will at all times remain the property of the City. Such data or information may not be used or copied for direct or indirect use by Contractor after completion or termination of this Contract without the express written consent of the City. All materials, documents, data or information, including copies, must be returned to the City at the end of the contract.

All data, documents and other products used, developed, or produced during response preparation of the RFP will become property of the City . All responses to the RFP shall become property of the City . Proposer information identified as proprietary shall be maintained confidential, to the extent allowed under the California Public Records Act.

I. DRUG-FREE WORKPLACE
The awarded Contractor certifies compliance with Government Code Section 8355 in matters relating to providing a drug- free workplace. Failure to comply with these requirements may result in suspension of payments under the Contract or termination of the contract or both, and the Contractor may be ineligible for award of any future City contracts.

J. EXAMINATION
Proposer represents that it has thoroughly examined and become familiar with the services and responsibilities required this RFP and that it is capable of effectively and efficiently performing quality work to achieve the City’s objectives. Any attachments referenced herein or any interpretations, clarifications or amendments subsequently posted in relation to this RFP are fully incorporated.

Any irregularities or lack of clarity in the RFP should be brought to the designated City Contact/Project Manager’s attention as soon as possible so that corrective addenda may be furnished to prospective Proposers.

Proposals which appear unrealistic in the terms of technical commitments, lack of technical competence, or are indicative of failure to comprehend the complexity and risk of this contract, may be rejected.

K. EXECUTION OF AGREEMENT
Upon successful negotiations, the City and the selected Proposer will enter into an Agreement similar to that as shown in EXHIBIT II – Sample Agreement of this RFP . If a Proposer is unwilling or unable to execute an Agreement within thirty (30) days after being notified of selection under this RFP, the City reserves the right to disqualify them without any further obligation
L. FISCAL NONFUNDING CLAUSE
In the event sufficient budgeted funds are not available for a new fiscal period, the City shall retain the right to notify the provider of such occurrence in writing at least thirty (30) days before the end of the current fiscal period and terminate the c ontract on the last day of the current fiscal period without penalty or expense to the City.

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M. JOINT OFFERS/SUBCONSULTANTS
Where two or more Proposers desire to submit a single proposal in response to this RFP , they should do so on a prime sub-consultant basis. The City intends to contract with a single firm, also known as the prime, and not with multiple firms doing business as a joint venture.

Should the use of sub -consultants be offered, the Proposer shall provide the same assurances of competence for the sub-consultant plus the demonstrated ability to manage and supervise the subcontracted work. Sub- consultants shall not be allowed to further subcontract with others for work under the Agreement. The provisions of the Agreement shall apply to all sub-consultants in the same manner as the Proposer. The proposer is responsible for all the actions taken by their sub-contractor.

The City reserves the right to reject, replace and approve any and all Subcontractors . All Subcontractor(s) shall be identified in the response to the RFP and the City reserves the right to reject any proposed Subcontractor(s) . Subcontractors shall be the responsibility of the prime Contractor and the City shall assume no liability of such Subcontractors.

N. INDEPENDENT CONTRACTOR
Contractor is considered an independent Contractor and neither Contractor, its employees, nor anyone working under Contractor will be considered an agent or an employee of City .

Neither Contractor, its employees, nor anyone working under Contractor, will q ualify for workers’ compensation or other fringe benefits of any kind through City.

O. LITIGATION STATUS
Each Proposer must include in its proposal a complete disclosure of any alleged significant prior or ongoing contract failures, any civil or criminal litigation or investigation pending which involves the Proposer or in which the Proposer has been judged guilty or liable. Failure to comply with the terms of this provision will disqualify any proposal. The City reserves the right to reject any proposal based upon the Proposer’s prior history with the City or with any other party, which documents, without limitation, unsatisfactory performance, adversarial or contentious demeanor, significant failure(s) to meet contract milestones or other contractual failures.

P. NEGOTIATIONS
The City reserves the right to negotiate final contract terms with any Proposer selected. The contract between the parties will consist of the RFP together with any modifications thereto, and the awarded Contractor’s proposal , together with any modifications and clarifications thereto that are submitted at the request of the City during the evaluation and negotiation process. In the event of any conflict or contradiction between or among these documents, the documents shall control in the following order of precedence: the final executed contract, the RFP, any modifications and clarifications to the awarded Contractor’s proposal, and the awarded Contractor’s proposal. Specific exceptions to this general rule may be noted in the final executed contract.

Negotiations shall be confidential and not subject to disclosure to competing Contractors unless and until an agreement is reached. If contract negotiations cannot be concluded successfully, the City reserves the right to negotiate a contract with another Contractor or withdraw the RFP.

Q. NON-PAYMENTS
Note that payments will NOT be made for any unsatisfactory work until corrected. In the event of nonpayment of undisputed sums by the City, Contractor shall give the City thirty (30) working days to cure the alleged breach.

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R. OWNERSHIP OF DOCUMENTS
The City has permanent ownership of all directly connected and derivative materials produced under this contract by the Contractor. All documents, reports and other incidental or derivative work or materials furnished hereunder shall become and remains the sole property of the City and may be used by the City as it may require without additional cost to the City. Contractor shall provide the City copies of documents upon its request at any time. None of the documents, reports and other incidental or derivative work or furnished materials shall be used by the Contractor without the express written consent of the City.

S. PARKING
The City will not provide free parking and/or reimbursement for the cost of parking while providing services and conducting business with the City.

T. PROFESSIONAL STANDARDS
Contractor staff shall be courteous to the public and City staff utilizing facilities where Contractor is performing work, but shall be responsive only to the requests of the City’s Project Manager or designee. Contractor staff shall direct all inquiries to Project Manager or designee.

Contractor acknowledges that City locations consist of public -use facilities and recognizes the obligation to ensure Contractor personnel and agents maintain the highest level of professional standards in attire, decorum, and interaction with the public and City personnel.

U. PROJECT MANAGER
The selected Proposer will assume responsibility for all services in its proposal. The selected Proposer shall identify a sole point of contact, Project Manager, with the greatest knowledge in regard to the required service operations and contractual matters, including payment of any and all charges resulting from the Agreement.

V. PROPOSAL VALIDITY
Services, pricing, and warranties indicated in a Proposer’s Proposal must be valid for a period of 180 days at minimum after the submission of the Proposal.

W. PUBLIC AGENCIES
Other public agencies, as defined by California Government Code Section 6500, may choose to use the terms of this Contract, subject to Contractor’s acceptance. The City is not liable or responsible for any obligations related to a subsequent contract between Contractor and another public agency.

X. PUBLIC RECORDS
Proposals will become public record after the award of a contract unless the proposal or specific parts of the proposal can be shown to be exempt by law. Each Proposer may clearly label all or part of a proposal as "CONFIDENTIAL" provided that the Proposer thereby agrees to indemnify and defend the City for honoring such a designation. The failure to so label any information that is released by the City shall constitute a complete waiver of any and all claims for damages caused by any release of the information. Proposer information identified as proprietary shall be maintained confidential, to the extent allowed under the California Public Records Act.

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Y. SUBCONTRACTORS
Proposals in response to this RFP must identify any Subcontractors, and outline the contractual relationship between the Awarded Subcontractor and each Subcontractor. An official of each proposed Subcontractor must sign, and include as part of the proposal submitted by the Prime Contractor, a statement to the effect that the Subcontractor has read and will agree to abide by the awarded Contractor’s obligations. Any Subcontractor proposed after award of contract must be approved by the City before commencement of work.

The City will look s olely to the awarded Contractor for the performance of all contractual obligations which may result from an award based on this RFP, and the awarded Contractor shall not be relieved for the non-performance of any or all Subcontractors.

XIV. AWARD OF AGREEMENT
Selected Contractor(s) will be notified in writing. Any award is contingent upon the successful negotiation of final contract terms.

A. EXECUTION OF AGREEMENT
A standard agreement is included as EXHIBIT II Sample Agreement of this RFP. “Proposer” will hereinafter be referred to as “Consultant” or “Contractor” in standard agreement. The term of the agreement will begin after the agreement is fully executed, and all required bonds, insurance documents and contents of the payment information packet have been received and approved.

XV. IMPLEMENTATION
A. KICK-OFF MEETINGS
The successful proposer will be required to meet with City staff prior to commencement of services or at any time as required by the City, to discuss and agree on operational issues including transition of services and scheduling.

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Consultant or Consultant’s software solution shall include a centralized data collection system that will meet the City’s current and future demands for customer intake, data management, discovery and collection of taxes and fees. Implementation of the Business License Tax Software Platform shall be a comprehensive, state-of-the-art business licensing software that can provide a start to finish solution and should include the ability to integrate with other software utilized by the City. The software solution must meet or exceed the specifications outlined below:

A. GENERAL SYSTEM / SOFTWARE REQUIREMENTS

1. The ability to integrate with various City & Third -Party solutions, including but not limited to the City’s incoming LMS (Clariti) and the City’s Treasury Services payment modules (System Innovators iNovah application & City of Santa Ana’s PAY application), and the City’s current Enterprise Resource Planning (ERP) system, Infor Lawson. However, please note, the City is currently undergoing a separate, competitive solicitation process for an ERP system and the current ERP system may change in the next 2-5 years.
a. Included in this integration are links to automatically push/pull defined customer service information (“CIS”) data relating to Proactive Residential Enforcement Program ( PREP) accounts, Certificates of Occupancy, and Home Occupation Permits. Other records may be synced into this system throughout the years.

2. Support for an automatic registration capability to convert qualified pre- licensing accounts to active business license tax accounts ready for receipt/business license certificate issuance or variance/penalty billing.

3. Support for a competent in arrears original delinquency penalty abatement calculation/billing capability – (see Business License Tax Code – SAMC Sec. 21 -25), and incorporate a flexible installment agreement function with tracking.

4. Support for pre-licensing and license renewal “pop-up” calculators is required.

5. Proposal shall also include provision and support for filing, reporting, and payment tracking modules for the City’s Business License Tax, Cannabis Tax, Hotel Visitors’ Tax (HVT), Utility Users’ Tax (UUT), Proactive Rental Enforcement Program (PREP), and Tourism Marketing Districts (TMD) programs for registration, renewal, payment, and collection needs.

6. Automate the application, renewal, and payment business process of City of Santa Ana tax and assessment accounts, including but not limited to Business License Tax, C annabis tax, HVT s, UUTs, PREPs, and TMDs, with the flexibility to track leads as well as the capability to add the following functions:

a. The automation must contain configurable workflow functions and notification capabilities to support robust online business licensing with expedited City staff interactions for review, approval, and release.

EXHIBIT I

SCOPE OF SERVICES
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b. In instances of initial business licensing not requiring City staff review, the system must permit fully automated online licensing (e.g. out -of-town state license contractors, absentee residential rental property landlords, etc.). The online capabilities must include but are not limited to:

i. Customers create a profile and receive login/password credentials with the ability to initiate password resets;
ii. S taff may reset credentials if a customer is locked out; iii. Customers may upload multiple images or other documentation with online applications. T he ability to store all documentation submitted within the system itself with document management capabilities is highly desirable. iv. S ystem MUST possess the capability to link to the City’s Laserfiche application to connect documents and files, either printed/scanned or digitally generated, i.e.

Adobe PDF. The ability to run a full text search on all stored documentation and scanned files is required;
v. Customers may update and request to cancel their business license online, with staff approvals permitted;
vi. Enable secure signatory processes which may be built into the system or integrated with an outside platform (e.g. Simple Signature); and vii. The workflow processes must ensure all requirements are met prior to a business license being issued. This includes but is not limited to , possessing occupancy permits, Alcohol Beverage Control (ABC) licenses, and contractor licenses, which will require the system to communicate with the City’s incoming LMS (Clariti). This functionality would in turn allow for multiple sales permits to be assigned to a single business license.

7. Calculate standard or special taxes, fees, and assessments (in addition to penalties and interests) from City-defined formulas or rates with the ability for authorized City staff to override and amend the amounts charged.

a. The ability to set start- and end-dates for such calculations is required. b. Records of staff overrides must be maintained with the name of the staff member plus ID number and the reason for the modification.
i. Selection of reasons from a configurable drop-down list is ideal. c. Tax and fee adjustments may only occur after the acceptance of an initial tax or fee is collected and may be done as a refund, revision, resubmission, adjustment, apportionment rule/apportionment audit, or transfer.
d. A “scenario calculator” to estimate taxes, fees, and assessments is highly desirable;

8. The ability to associate a payoff order/sequence to fees, taxes, interests, penalties, and any other charges within the system.
a. The computation of the final payoff order/sequence when applying received payments must be in accordance to existing and future Santa Ana Municipal Code, and Bus iness License Tax Administrative Procedures.
b. For the proposers’ knowledge, the Santa Ana Municipal Code § 21.66 states, “Money received during the current year for a license shall first be applied to the payment of delinquent fees, sums and penalties due during any preceding calendar year, any balance remaining thereafter shall be applied to the payment of the current license fees and penalties.”

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9. Record and associate accounts with invoice identifiers, receipts (including date and time of payment), and revenue account numbers for each tax and fee transaction.

a. The distribution of digital receipts to the emails on record when payments are made in- person is ideal;

10. Categorize and group accounts by appropriate record elements, particularly by business type, and apply the appropriate estimated taxation based on the license type category and related tax assessment;

11. Allow for records to be searched, tracked, logged, and monitored based on different record elements, such as active/inactive status, age, location/GIS code, and business type;

12. Allow for City staff to insert comments and notes on any account and place flags or warnings to accounts based on special comments/conditions, with timestamps and logs stored for each entry or transaction, including staff name plus ID number.

a. All financial transactions, including changes in taxes/fees and adjustments, must be recorded for audit purposes.
b. As part of the workflow functions, a flag or other special notations should trigger notifications to staff as well as place holds on accounts;

13. Generate consistent and accurate reports in standard or customizable formats on a scheduled or as-needed basis.

a. The ability to share/view/read large-size or all-record reports through the system to outside regulatory agencies or internal City departments is ideal;

14. Migrate data from the City’s current software(s) to the awarded software system;

15. Provide continuous updates or allow for the configuration of r ules within the system to meet the City’s changes in legislative requirements, technology needs, and operational demands, in addition to complying with Federal and State of California laws and regulations;

16. Support Section 508 Accessibility Standards; and

17. Apply the City of Santa Ana logo and other branding elements where appropriate.

B. TECHNICAL SYSTEM / SOFTWARE REQUIREMENTS

1. Function in a web-based environment with support for multiple browsers including Microsoft Edge Chromium Edition and Google Chrome browsers on Windows versions 10 and 11. a. P rovide updates for future web browsers and Windows operating systems. b. T he City requests that any web-based system not require Internet Explorer 11 mode to be engaged;

2. Provide automatic file backups with daily continuity and disaster recovery;

3. Provide or integrate with a GIS/GEO code address master to ensure applicants seeking licensure as in-city businesses have both a City of Santa Ana postal designation as well as function at a validated physical location within the City’s formal boundaries. Proposed solutions should support City of Santa Ana
RFP No. 23-165

GIS/GEO coding/mapping for inquiry look -up, investigation/inspection assignment, revenue tracking/reporting, and account aging & collection activities, together with general reporting and database extract purposes.
a. This functionality must also allow for the system to recognize coded geographical areas that assess special taxes such as BIDs. Defined data sets will be required to be maintained for the City Downtown BID and the City’s TMD.
b. The GIS/GEO coding must work as an electronic export as well as in instances when data must be backed up or reviewed externally, such as when the Franchise Tax Board conducts comparative tax audits.
c. A scalable master database export function is also required for defined elements of the principal business license tax dataset, as well as for ancillary modules, and for defined GIS/GEO-coded districts/areas.
d. T he coding must align with coding from CDTFA/third-party consultant Sales Tax Allocation data for other comparative tax audits;

4. Integrate with the City’s incoming LMS (Clariti) to properly link licenses with the City’s real estate records.
a. The ability to store an internal address repository with access to Clariti is ideal. b. The proposed system must be able to automatically suppress issuance of a formal business license tax certificate when unapproved or pending requirements are noted in Clariti;
c. It is highly desirable that t he system also support secondary City -generated address masters connecting to: County of Orange Assessor Property Records (i.e., assessor parcel number); and State of California Department of Tax & Fee Administration permitted sales tax addresses.
d. The ability to encode and associate visual geographical information to addresses/accounts, such as street views, is ideal.

5. Support for County of Orange tax lien and City of Santa Ana administrative citation processes should also be incorporated;

6. Handle Standard Industrial Classification ( SIC) Code assignments / North American Industrial Classification System (NAICS) Code selections as part of the initial business licensing process;

7. Ensure data integrity, accuracy, and completeness with standard or configurable validation rules for data fields;

8. Possess the ability for bulk data entry where staff may enter renewal reporting information for a set of accounts all at once via a file import or through bulk data entry screens to streamline paper renewal processing workflows.

a. The submittal of bulk data (or any data) should trigger the workflow processes within the system to automatically update accounts and calculate taxes, fees, and assessments. The City’s current system allows for this function in which staff enter records for approximately 3,000 accounts manually from paper submissions;

9. Possess the ability to export account records in bulk with mail merge printing capabilities, allowing the creation and revision of business license application forms, noncompliance notices, certificates, and other letters/memorandums/documents with predefined document templates.

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a. This function should allow for bulk selection by business license category, geographical location or zone, age, or other characteristics;

10. Possess the ability to send mass digital/email notices, certificates, and other letters/memorandums/documents with predefined notice templates to select email addresses on record;

11. Automatically generate and distribute invoices/billing statements and filing forms via email for business license renewals on a monthly, quarterly, semi -annual, annual, or as -needed basis based on the business type or other defined characteristics.

a. These renewal notices must be submitted in advance of renewal deadlines, for example, trust tax and cannabis tax filers must receive renewal notices 30 days prior to their fi ling deadline.
b. As-needed and special invoicing/billing may occur when an account is closed but a balance remains, there is a zero gross receipts assessment, or other criteria/events;

12. Possess the ability to export financial records or contain a General Ledger interface that communicates with the City’s existing or future financial systems and other City software systems.

Additional reporting capabilities that summarize and detail speci fic fees or tax assessments is required.

a. For the Proposer’s knowledge, the City of Santa Ana will soon issue an RFP for ERP solution and implementation services. The ideal Business License Taxation solution would integrate with the selected ERP system. Proposers should include in their Proposals any ERP implementation partners with which they have successfully integrated their software solution as related to services specified herein.

13. Accept payments by cash, check, credit, ACH/EFT with the ability to accept payments online including partial payments and mixed tender payments (combination of check, credit, and cash).

a. Software functionality should also allow field staff to directly access and edit accounts, including acceptance of credit card payments while performing field activities. b. The proposed system must also accept and support partial payments, and also allow for a variance billing notice to be generated and mailed to the business owner. c. In-person payments may be done at POS cashiering stations or via publicly -accessible kiosks.
d. The City utilizes Invoice Cloud as its online and payment kiosk processor and TSYS Global Payments as its walk -in payment processor; integrations with Invoice Cloud and TSYS, as well as System Innovators iNovah Cashiering and Revenue Tracking applications is highly desirable.
e. The City utilizes the following merchant processors: TSYS Merchant Solutions, LLC; Global Payments Integrated, Inc.; OpenEdge; JP Morgan Chase Paymentech; and EPX – Electronic Payment Exchange;
f. Phone payments must also be allowed; however, may be done through a mobile application/browser, text, or automated voice call.
g. All online payment functionalities must be available 24/7, 365 days a year;

14. Permit staff to adjust payments (e.g. payment submitted to wrong account or fee and adjustments are needed) with record of transactional changes within the system;

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15. Issue a paper receipt or an online receipt upon receiving a completed payment.

a. T he City’s current software allows business license tax payments to be by mail; received in-person as a credit card, check, cash, or mixed tender payment; and online as a credit card or ACH payment;

16. Track account deposits and credits that may be applied to future business license renewals.

a. Deposits and credits may also be used an escheatment to settle delinquent closeout accounts;

17. Support a City-controlled carry-forward function to carry unpaid balances forward into a future tax year.

a. T he City currently allows unpaid balances less than $50 to be carried forward;

18. Process payment refunds, issue credits, and void payments transactions;

19. Impose a fee for payments returned as a result of insufficient funds.

a. T he workflow processes must automatically generate a letter to be sent via USPS mail in addition to a notification sent via email to the customer’s email address on record. b. A customer must possess the option to initiate a payment plan with staff review to alleviate this issue;

20. Automatically generate and place warnings and/or holds on noncompliant accounts as a result of delinquency, license expiration, returned payments (i.e., bounced checks), partial payments not approved, and other City-defined characteristics;

21. Support the ability to place specific business type accounts in a nonrenewal “suspense” state if the license is not renewed within a twelve (12) month period.

a. This currently occurs for State Licensed Contractors and Special Event Participants who receive annual reminders for three (3) years after expiration in the suspended state and afterward they are determined as inactive/closed;

22. Remain in compliance with industry -standard payment security protocols and regulations, including Payment Card Industry Data Security Standards (PCI DDS);

23. Allow an authorized staff member to manually release an automatic “Hold” on an account to permit issuance of a business license tax certificate;

24. Contain or implement security measures to protect the confidentiality and integrity of information on record which includes but not limited to:

a. U tilizing session timeouts,
b. A llow viewing of data to authorized persons,
c. P lacing view/read limits for defined users showing only a limited subset of account data, d. A llowing edit/write permissions for defined users,
e. E ncrypting sensitive information including passwords at the database and system level, City of Santa Ana
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f. M asking data at the user and application level (administrator and inactive directory accounts), and
g. E nabling the selection of system administrators;

25. Support a single sign-on from within the City of Santa Ana’s internal network.

a. If single sign-on is unavailable, supports LDAP authentication via Active Directory. At the minimal, employ authentication measures using application- based sign- on with usernames and passwords secured over the TLS communication protocol version 1.2 and greater;
b. For externally hosted solution, authenticate using SAML 2.0 is preferred.

26. For on-premises hosting, The City of Santa Ana Information Technology prefers solution that is compatible with Microsoft Windows Server, preferable the latest version (2022). If Microsoft Windows Server is not supported, alternate operation systems may be considered but pr iority is to Windows Server;

27. For on-premises hosting, The City of Santa Ana Information Technology prefers solution that is compatible with Microsoft SQL Server 2017 or 2019 name instance. If Microsoft SQL Server is not supported, alternate database systems may be considered but priority is to SQL Server;

28. Integrate with Microsoft Exchange Server 2016 or later for system functionalities requiring City infrastructure to send and receive emails; and

29. Ensure that the proposed system provides updates for current and future versions of integrated City software at no additional cost, except cost incorporated in an annual base support and maintenance fee.

C. PUBLIC PORTAL / CITIZEN ACCESS REQUIREMENTS

1. Ensure the Public Portal / Citizen Access component(s) support multiple browsers and their versions, and multiple operating systems in desktop or scalable mobile formats (i.e. tablet, smartphone, laptop, etc.);

a. S oftware web and mobile device functionality is a requirement in order to provide an effective e -commerce experience and unique “customer friendly” online portal for businesses, property owners, applicants, and contractors to access their business license information and status.

2. Support translations within the system itself or through integrated tools, such as Google Translate, with specialized expert (City defined) language translations as needed;

3. Enable members of the public to submit inquiries and complaints online, without requiring access credentials should submitters desire to remain anonymous.

a. This function may employ a link to the City of Santa Ana’s web forms, or may offer a module for inquiries within the system itself which is ideal; and

4. Control information visibility and limit public access to internal information with the City able to determine what is viewable by the public.

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RFP No. 23-165

a. Examples of publicly-permitted functions are conducting business license searches with pre-defined data returns and viewing the City’s business license roster with filter capabilities (e.g., date of business startup, license type, address, and name).

D. UNLICENSED BUSINESS LEAD DEVELOPMENT REQUIREMENTS

1. Actively support the conversion process of guiding leads towards business license registration which may include the upload of external data to be compared with City of Santa Ana data to identify unlicensed businesses within the City’s boundaries. a. The workflow processes must allow for mass communication to leads with the ability to track responses.
b. The system must provide a pre-licensing/revenue tracking module utilizing available City of Santa Ana and third- party business data for sub-programs, such as but not limited to:
i. Franchise Tax Board (FTB) business license exchange data; ii. Secretary of State (SOS) pass-thru entities and holding companies; iii. Fictitious Business Name (DBA) business name registrations; iv. Sales Tax Registrations (AB990);
v. Sales Tax Allocations
vi. State of California’s Contractors State License Board business registrations; and vii. Other miscellaneous in- house sub -program data (e.g. Commercial Landlord Tenant Roster/Independent Contractor filings, Municipal Utility Tenant registrations, Section 8 Housing registrations, Condominium/HOA Roster Filings, Purchasing Agreements and Specifications)

2. Possess the ability to search, filter, and categorize leads to view and process by source, business license type, campaign category, and other relevant attributes; and

3. Possess the ability to export bulk lead records with mail merge printing capabilities to allow for the creation and revision of licensing notices and other letters/memorandums/documents generated with predefined document templates , including archiving fina l notices based on campaign type and requestor ID.

E. IMPLEMENTATION REQUIREMENTS

1. Full implementation, release, and acceptance are required by mid- to late-2025.

2. Proposers must provide projected software customization, testing, data migration, implementation, parallel operation and final release and acceptance timelines.

3. Provide unlimited phone and email support to the City of Santa Ana during the City’s regular business hours. The City operates from 7:30 A.M. – 5:30 P.M. Monday through Thursday, and 8:00 A.M. – 5:00 P.M. every other Friday.

4. E mergency support after regular business hours must also be made available and may be charged separately.

5. T he ability to provide remote support is ideal.

6. The ability to view Support and Enhancement Requests (including individual and City -wide request tickets) via reports and/or portal access is required.

City of Santa Ana
RFP No. 23-165

7. Provide a testing environment for implementation of the new system. The testing environment must remain available at all times during the term of the contract.

8. Contractor must own, lead, manage, and coordinate all aspects of the project to migrate from the City’s current taxation software to the awarded application.

9. Contractor must own and manage the entirety of the historical data conversion from the current system to the awarded application.

10. Contractor is responsible for the cleansing, extraction, translation, and upload of the City’s data.

a. The data to be included is all historical data in the City’s legacy database up until the production cutover date. The converted data will be available in the new application in a format that is similar or improved in capability, productivity, and efficiency as the intended usage in the legacy system;

11. City staff’s responsibility will be limited to providing general feedback on the data conversion.

12. Contractor must provide comprehensive software training that includes, but is not limited to, end- user training with training manuals for all back-office users and administrator/configuration training with training manuals (up to 10 users).

a. No train-the-trainer approach shall be utilized by the vendor.

F. OPTIONAL OFFERINGS

1. Offer a module for the administration of the PREP, including a public interface, with the ability to perform primary and variance/penalty billing utilizing the same business rules as the Business License Taxation Software.

a. PREP assessment periods are from July 1 to June 30 of the following calendar year. b. The module must share real-time integration with the City’s Land Management Software (Clariti).

City of Santa Ana
RFP No. 23-165

CONSULTANT AGREEMENT

CITY OF SANTA ANA

THIS AGREEMENT is made and entered into on this day of , 20__ by and between ___________________________________________________________, (“Consultant”), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (“City”).

RECITALS

A. The City desires to retain a Consultant having special skill and knowledge in the field of:

B. Consultant represents that Consultant is able and willing to provide such services to the City.

C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field.

NOW THEREFORE , in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows:

1. SCOPE OF SERVICES

Consultant shall perform during the term of this Agreement, the tasks and obligations including all labor, materials, tools, equipment, and incidental customary work required to fully and adequately complete the serv ices described and set forth in Scope of Services - Exhibit A, attached hereto and incorporated by reference.

2. COMPENSATION

a. City agrees to pay, and Consultant agrees to accept as total payment for its services for City, the rates and charges identified in Compensation - Exhibit B. The total amount to be expended during the term of this Agreement shall not exceed $xxxxxx.

b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures . Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City.

3. TERM

This Agreement shall commence on the date first written above for an initial period of five (5) years. The City may, at its discretion, extend the agreement with the same or more limited scope of required services for three (3) additional periods of two (2) years, one (1) year, and a final optional extension for a one (1) year period, upon mutual agreement contingent upon City Council approval, or City Manager or City Attorney authorization, as appropriate. The total term of the awarded agreement shall not exceed nine (9) years. The Agreement may be terminated earlier in accordance with Section 15, below.

4. INDEPENDENT CONTRACTOR

Consultant shall, during the entire term of this Agreement, be construed to be an independent Consultant and not an employee of the City . This Agreement is not intended nor shall it be construed to create an employer - employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the

EXHIBIT II

SAMPLE AGREEMENT
City of Santa Ana
RFP No. 23-165

professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes.

5. OWNERSHIP OF MATERIALS

This Agreement creates a non- exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of express ion, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”) .

Consultant shall require all subcontractors to agree in writing that City is granted a non- exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement . Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant by the City . City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.

6. INSURANCE

Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors.

MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Cyber Liability: Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.
o Technology Professional Liability Errors and Omissions Insurance appropriate to the Consultant’s profession and work hereunder, with limits not less than $2,000,000 per occurrence. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Vendor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.  The Policy shall include, or be endorsed to include, property damage liabilit y coverage for damage to, alteration of, loss of, or destruction of electronic data and/or information “property” of the Agency in the care, custody, or control of the Vendor. If City of Santa Ana
RFP No. 23-165

not covered under the Vendor’s liability policy, such “property” coverage of the Agency may be endorsed onto the Vendor’s Cyber Liability Policy as covered property as follows

If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the Entity requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Entity.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The Entity, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).

Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the Entity.

Waiver of Subrogation
Contractor hereby grants to Entity a waiver of any right to subrogation which any insurer of said Contractor may acquire against the Entity by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardl ess of whether or not the Entity has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the Entity. The Entity may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or Entity.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the Entity.

Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non- renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work.

City of Santa Ana
RFP No. 23-165

Verification of Coverage
Contractor shall furnish the Entity with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to Entity before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them.

The Entity reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Certificate Holder must be addressed as follows:

City of Santa Ana
Risk Management Division
20 Civic Center Plaza
Santa Ana, CA 92702

Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that Entity is an additional insured on insurance required from subcontractors.

Special Risks or Circumstances
Entity reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances

7. INDEMNIFICATION

Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Contractor, its subcontractors, agents, employees, or other persons acting on its behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the term s of, or effects, arising from this Agreement . The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Contractor’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor.

8. INTELLECTUAL PROPERTY INDEMNIFICATION

Consultant shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including costs, for infringement of any United States’ letters patent, trademark, or copyright infringement, including costs, contained in the work product or documents provided by Consultant to the City pursuant to this Agreement.

9. RECORDS

Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this City of Santa Ana
RFP No. 23-165

Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours . Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement.

10. CONFIDENTIALITY

If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. “Confidential Information” shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to information disclosed by the City.

11. CONFLICT OF INTEREST CLAUSE

Consultant covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement.

12. NON-DISCRIMINATION

Consultant shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, gender identity, gender expression, gender, medical conditions, genetic information, or military and veteran status, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, teaching, training, utilization, promotion, termination or other employment related activities or any services provided under this Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations.

13. EXCLUSIVITY AND AMENDMENT

This Agreement represents the complete and exclusive statement between the City and Contractor, and supersedes any and all other agreements, oral or written, between the parties . In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Contractor. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City.

Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein.

14. ASSIGNMENT

Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City’s ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Contractors retained by City.

15. TERMINATION
City of Santa Ana
RFP No. 23-165

This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the following conditions:
a. As a condition of such payment, the Executive Director may require Consultant to deliver to t he City all work product(s) completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate.
b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement.

16. WAIVER

No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies.

17. JURISDICTION - VENUE

This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement.

18. PROFESSIONAL LICENSES

Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement.

19. NOTICE

Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons:

To City:

Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Fax: 714- 647-6956

With courtesy copies to:

Finance & Management Services Agency
City of Santa Ana
20 Civic Center Plaza (M-15)

City of Santa Ana
RFP No. 23-165

P.O. Box 1981
Santa Ana, California 92702
ATTN: Alejandra Gutierrez
Fax: 714-647-5497

To Contractor:

A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or cer tified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty -four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded.

20. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney’s fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. The Agreement is the final and complete agreement and any prior or contemporaneous agreements for similar services between the parties is superseded by this Agreement . This shall not apply where the Parties are currently engaged and Consultant is providing services not contemplated by this Agreement.
c. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written.

ATTEST: CITY OF SANTA ANA

Jennifer L. Hall Steven A. Mendoza
City Clerk Acting City Manager

APPROVED AS TO FORM:

SONIA R. CARVALHO CONSULTANT:

City Attorney

By:

Assistant City Attorney
First & Last Name
Title
Consultant Firm Name
Address
City, State, Zip
Fax:

(name)
(title)

City of Santa Ana
RFP No. 23-165

Tax ID#

RECOMMENDED FOR APPROVAL:

Kathryn Downs, CPA
Executive Director, Finance & Management Services
Finance & Management Services Agency

City of Santa Ana
RFP No. 23-165

The following is a brief overview of the Santa Ana Business License Tax program including some of the functionalities and processes employed by our homegrown BTS.Net application. (Please note that our Business Tax System (BTS) Software is currently linked with Infor Lawson for our General Ledger software as well as Laserfiche for our scanned document repository software.)

Flat Rate
Flat Rate license taxes are required to be paid annually and are due and payable on December 1 of every year. Flat Rate licenses become delinquent if not paid by January 1. The Table below gives some statistical information relating to the volume involved in the Flat Rate renewals based on various business tax groups as of July 31, 2023.

Flat Rate renewals are prepared starting in November with CPI rate adjusted values computed for the period beginning June 30th and ending October 31
st of each current year entered into the BTS rate tables for all different types of assessment accounts (Flat Rate, Fixed Variable Flat Rate, Gross Receipts, and Variable Flat Rate). All Flat Rate renewals are mailed out on or about November 25 of each year. A message referring to all of up and coming holiday closures for December and January is printed on the renewals themselves as a special message. For this group of business licenses renewals “Fixed Flat Variable Assessment” is the largest segment and predominately includes Apartment Complexes, Apartment Houses, Multiplex Residential Rental Properties to Single Family Residential Rental Properties and Condo Rental Properties.

Suspense Accounts
Suspense Accounts are a subset of Flat Rate accounts that are not automatically programmed to renew.

That is to say, that they do not get annual charges added on to them automatically. A review on Suspense Business Group Total B usinesses Active B usinesses Suspense B usinesses N on-R esident B usinesses In-City B usinesses Home Location Businesses Advertising Svc (Bill Posting,Flyers,Loudspeakers 1 1 0 1 0 0 Amusement Center (> 10 days) 1 0 1 0 1 0
Carnival or Circus (< 4000 people) 2 0 2 2 0 0
Christmas Tree or Pumpkin Patch Lot 2 0 2 0 2 0
Firework Stand 78 56 22 0 78 0
Gratuitous 97 97 0 5 92 76
Gratuitous - Registration Exempt 1148 356 792 1071 77 9 Home Based Business 479 479 0 1 478 286
Independent Contractor 793 793 0 53 740 579
Itinerant Merchant 5 2 3 0 5 0
Mobile Home Rental 78 78 0 0 78 54
One Day Peddler/Solicitor 2 0 2 1 1 1
Peddler/Solicitor 29 29 0 10 19 10
PushCarts 22 22 0 0 22 4
Residential Rental 7233 7233 0 1 7232 6481
Sports Exhibition 2 1 1 2 0 0
State License Contractor - Class A/B 2304 1294 1010 2058 246 63 State Licensed Contractor - Class C 3553 2116 1437 3112 441 154 Warehouse or Storage 204 204 0 0 204 3
Totals: 16033 12761 3272 6317 9716 7720

EXHIBIT III

CITY OF SANTA ANA GENERAL BUSINESS LICENSE TAXATION OVERVIEW

City of Santa Ana
RFP No. 23-165

Accounts are done yearly to close out accounts that have had no activity after four years. In order to renew a Suspense Account either the Customer or a City employee with assessment privileges within the BTS must prompt the system to add charges in order to be billed. Non Resident State Licensed Contractors, however, are billed but charges are kept in “Suspense”. Furthermore, some of the Suspense accounts are suppressed from being mailed an annual renewal such as Christmas Tree/Pumpkin Patch lots, Firework Stands, Itinerant Merchants, One Day Peddler/Solicitors, or Sports Exhibitions, as these activates require special land use certificates or permits. Most of these activities are transient in nature and require a review of the location were the business activity would be taking place. These types of activities often vary in location and from day-to-day or year-to-year.

The Table below gives some statistical information as of July 31, 2023 relating to the volume involved in the realm of Suspense accounts. Note all Suspense accounts fall under the Flat Rate Renewals.

However, some varieties are assessed based on a daily or quarterly tax rate.

Business Group Reporting
Start Date
Reporting
End Date
Renewals In
Suspense
Amusement Center (> 10 days) 1/1/2023 12/31/2023 1
Carnival or Circus (< 4000 people) 1/1/2023 12/31/2023 2 Christmas Tree or Pumpkin Patch Lot 1/1/2023 12/31/2023 2 Firework Stand 1/1/2023 12/31/2023 22
Gratuitous - Registration Exempt 1/1/2023 12/31/2023 792 Itinerant Merchant 1/1/2023 12/31/2023 3
One Day Peddler/Solicitor 1/1/2023 12/31/2023 2
Sports Exhibition 1/1/2023 12/31/2023 1
State License Contractor - Class A/B 1/1/2023 12/31/2023 1010 State Licensed Contractor - Class C 1/1/2023 12/31/2023 1437 Total: 3272

Gratuitous / Hobbyist License Charge Accounts
Businesses that operate part-time or are part-time hobbies which generate gross receipts but gross below a fixed annual threshold amount (currently $5,000.00) may pay a reduced Gratuitous License or Hobbyist License Charge on a Flat Rate Assessment basis and are eligible to have their registration charges (Application Processing Charge or Renewal Application Processing Charge) waived.

Gross Receipts Rate Assessment Accounts
Gross Receipts Rate Assessment business license taxes are required to be paid annually and are due and payable on March 1 of every year. Gross Receipts rate licenses become delinquent if not paid by the April 1 of each year.

Generally, Gross Receipts Rate Assessment businesses are required to pay a “basic tax” amount, currently assessed at $60 annually, which for a new business is pro -ratable by quarters depending on the business start date. In addition, the assessment of gross receipts businesses consists of:

o Gross Receipts based tax rate margin assessment
o $15 Registration Fee (Application Process Charge/Renewal Processing Charge) o $4 SB1186/AB1379 (State) Fee
City of Santa Ana
RFP No. 23-165

The Table below gives some statistical information relating to the volume involved in the Gross Receipts renewals broken down into their various business tax groups as of July 31, 2023.

Gross Receipts Renewals Statements are prepared starting in mid-January to ensure that they are mailed out by February 15 of each year. There are varieties of different tax rates depending on the nature of the business. Retail and Services, Wholesale and Manufacturing, Mixed Retail/Services & Wholesale/Manufacturing, Commercial Rental - First Property, Commercial Rental and Second Property just to name a few. The current BTS adjusts the instructions to match the various rates as they apply to the specific type of account. Other varieties of instructions are dictated by location such as non-resident versus resident businesses. Below are some (not all) samples of the worksheets that are supplied on the back of the Gross Receipts renewals.

Business Group Total B usinesses Active B usinesses N on-R esident B usinesses In-City B usinesses Home Location Businesses Commercial Rental (Additional Unit) 226 226 0 226 0
Commercial Rental (First Unit) 1433 1433 1 1432 5
Commercial Rental (Special) 5 5 0 5 0
Home Based Business - GR 44 44 1 43 25
Professional Office GR 1190 1190 37 1153 26
Retail and Wholesale 1446 1446 36 1410 69
Retail or Admin 8157 8157 820 7337 1324
Salvage or Recycling 32 32 0 32 0
Vehicles GR (Ambulance, Buses, Limos, & VFH) 37 37 18 19 2 Wholesale 531 531 3 528 14
Total: 13101 13101 916 12185 1465
City of Santa Ana
RFP No. 23-165

Retail and Wholesale resident business rate calculation instructions:

City of Santa Ana
RFP No. 23-165

Cost of operations for resident business rate calculation instructions:

Gross Receipts Deposit Accounts
Gross Receipts Deposit Renewal are accounts that have deposited funds with the City and are subject to a gross receipts assessment. This occurs with new businesses that are required to pay a business license tax but lack the gross receipts history necessary for assessment. Reporting information on Gross Receipts Deposit accounts are required to be provided by April 30 and the data received is then assessed for the initial fiscal year period and then projected (annualized) for calculation of the following renewal fiscal year. Deposit amounts are then applied accordingly. Any unpaid net assessment remaining is billed without penalty or interest. After a full calendar year of operation, subsequent renewals are calculated based on the prior year’s gross receipts. Gross Receipts Deposit Renewals become delinquent if not paid by the May 1 of each year.

Variable Flat Rate Assessment Accounts
Variable Flat Rate taxes are required to be paid annually and are due and payable on June 1 of every year. Variable Flat Rate licenses shall become delinquent if not paid by July 1 of each year.

The Table below gives some statistical information relating to the volume involved in the Variable Flat rate renewals broken down into their various business tax groups as of July 31, 2023.

City of Santa Ana
RFP No. 23-165

Business Group Total
Businesses
Active
Businesses
Suspense
Businesses
Non-
Resident
Businesses
In-City
Businesses
Home
Location
Businesses
Billboards 5 5 0 4 1 0
Coin Operated Machines 60 60 0 27 33 0
Peddler/Solicitor with
Employees 16 16 0 10 6 1
Shoeshine Stand 1 1 0 0 1 0
Taxi Cabs 7 7 0 6 1 0
Vehicle (Catering, Ice
Cream,Produce,Junk) 312 312 0 16 296 87
Vehicles (Ambulances) 131 131 0 74 57 17
Vehicles (Delivery, Tow
Trucks, Trucking 131 313 0 74 57 17
Totals: 594 594 0 137 457 111

Variable Flat Rate renewals are prepared starting in mid- April to ensure that they are mailed out in by their mailing due date of May 15.

City of Santa Ana
RFP No. 23-165

Vending Machines rate calculation instructions:

City of Santa Ana
RFP No. 23-165

Vehicles (Catering Trucks, Produce Trucks, Ice Cream Trucks, Junk Collection Vehicles) rate calculation instructions:

Tax Exempt / Tax & Fee Exempt Accounts
Tax Exempt / Tax & Fee Exempt Accounts are broken into two categories:

• Tax Exempt Accounts - (Non-profit, Not For Profit, Charitable Organizations, etc.) are required to renew annually on the March 1 of each year. Tax Exempt accounts become delinquent if not paid by April 1 of each year. However, because penalties and Interest are only assessed on “taxes”, Tax Exempt accounts are not assessed penalty or interest charges. They are liable, however, for annual registration charges (i.e., Application Processing Charge / Renewal Processing Charge).

Tax Exempt accounts are generated and mailed out on or about February 15 of each year. • Tax and Fee Exempt Accounts – (Federal, State and County Government, Banks, Insurance Companies, Alcohol Beverage Control businesses, PUC Licensees, etc.) Because these types of accounts do not generate any revenue subject to local business license tax and are in some cases are governmental in nature, they only receive a business license for Administrative purposes and are not subject to a regular annual renewal filing. Likewise, they are not subject to registrations charges. These accounts are processed without system generated information exchanges with the account holders.

City of Santa Ana
RFP No. 23-165

Non-profit and Charitable Organization Accounts
Non-profit organizations or institutions which are eligible for an exemption from payment of federal income taxes under Section 501 of the Federal Internal Revenue Code as amended from time to time and/or exemption from the payment of state income taxes under Section 23701 et seq. of the California Revenue and Taxation Code as amended from time to time are exempt. However, institutions or organizations claiming a license fee exemption under this section have the burden of furnishing to the collector such information as the collector may require to support the claim of eligibility for exemption annually.

The Table below gives some statistical information relating to the volume involved in the Tax and Fee Exempt as well as Tax-exempt accounts. The information below is as of July 31, 2023.

Business Group Total
Businesses
Active
Businesses
Suspense
Businesses
Non-
Resident
Businesses
In-City
Businesses
Home
Location
Businesses
Tax and Fee Exempt 2226 2226 0 35 2191 1162
Tax Exempt
(Non-Profit) 386 386 0 34 352 33
Total:
2612 2612 0 69 2543 1195

Unlicensed Businesses: Pre-Business Licensing Activities The City aggregates and discretely mails notifications to potentially unlicensed business identified using a variety of in-house and third party data sources that include, but are not limited to:

• FTB Filing Data (FTB)
• DBA Filing Data (Lireco)
• Secretary of State Filing Data (SOS/Business Entity Filing Data) • Sales & Use Tax Allocation Data (CDFTA/Avenue Insights) • Sales & Use Tax AB990 Registration Data (CDTFA)
• Tenant Roster Data (In-House/Commercial Landlord Filings) • Commercial Property Rental Data (Tax Assessor/Coren & Cone) • Residential Property Rental Data (Tax Assessor/Coren & Cone) • Residential Property Rental Data (In House/MUS)

This data is parsed, scrubbed, and conformed via Access Database Table filtering and Excel Spreadsheet functions for mail m erge deployment and then uploaded to a VB6/Crystal Reports application – Business License Information Program (BLIP) for letter generation, response tracking, and account creation.

Due Dates
Any renewal due date falling on a weekend, City holiday, or City Hall closure date are carried forward to the next City working day. Any payment postmarked by the effective Due Date is deemed “timely” even if received after the Due Date.

City of Santa Ana
RFP No. 23-165

Original Delinquency
Any business which originally fails to obtain their required business license before initially commencing or carrying-on or transacting business in the City is subject to a 50% original delinquency penalty. This penalty, however, is abatable when the subject business responses in a timely fashion (by the last date of the month following the month in which notice is given) to a demand to obtain a business license and then applies for the required business license (and pays) for its in arrears taxes. See SAMC Sections 21-25 and 21-80.1. (Note: In the case of Original Delinquency, no interest charges are assessed.)

Past Due Penalties & Interest
Any bill received or bearing a postmark after the due date will be assessed past due penalties and interest according to the following cumulative table: At the 4th month, interest is calculated on the unpaid tax and penalty as a merged total.*

• Upon the 1st Month's Delinquency: = $ 10.00 or 10% of the unpaid tax (whichever is greater), and 1% interest on unpaid tax, plus
• Upon the 2nd Month's Delinquency: = $ 15.00 or 15% of the unpaid tax (whichever is greater), and 1% interest on unpaid tax, plus
• Upon the 3rd Month's Delinquency: = $ 25.00 or 25% of the unpaid tax (whichever is greater), and 1% interest on unpaid tax, plus
• Upon the 4th Month's Delinquency: = $ 50.00 or 50% of the unpaid tax (whichever is greater), and 1% interest on the merged balance, plus
• An additional 1% interest on the merged balance continuing for each month thereafter.

Forced estimated accounts
All accounts not reporting the required tax assessment values subsequently receive a Forced Assessment value and are billed (including initial penalty & interest assessment) accordingly. Forced estimations are nominally based on the following criteria:

• The average gross receipts amount (or other assessment criteria) reported for the same assessment period by similarly classified business, or
• The amount of the previously years’ reported gross receipts (or other assessment criteria) adjusted for the annual increase in the local CPI, as applicable.

Annual CPI Adjustment
Some business license tax rates, charges, administrative fees, and deposits are adjusted annually for the net change (+/ -) in the Los Angeles -Anaheim-Riverside All Urban Consumer CPI (1982 = 100%) computed from the base period beginning June 30, 1987 and ending each October 31 (Measure W reset the rates in 2022). Adjusted rates are then entered into the BTS rate table in November of each year for all the different types of assessment accounts (Flat Rate, Fixed Variable Flat Rate, Gross Receipts, and Variable Flat Rate, etc.)

Apportionment
• Prima Facie Apportionment
Whenever an out -of-town (non-resident) business transacts and carries -on business within the City of Santa Ana it may apply to be assessed on a gross receipts basis (whether it is nominally a Gross Receipts Rate Assessment business or not) based on its gross receipts solely generated within the City of Santa Ana.

• Burden on Interstate or Intercity Commerce; Petition for Adjustment Whenever a business license tax is claimed by a licensee, or applicant for business license to place an undue burden upon interstate or intercity commerce, or be violative of the constitutions of the United States and/or the State of California, the applicant or licensee can petition the Collector for an adjustment City of Santa Ana
RFP No. 23-165

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 (6) months after payment of the prescribed license tax. 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 Collector may deem necessary in order to determine the extent, if any, of undue burden on such commerce.

• Burden on Interstate or Intercity Commerce; Election of Apportionment Rules Whenever a business license tax is claimed by a licensee, or applicant for business license to place an undue burden upon interstate or intercity commerce, or be violative of the constitutions of the United States and/or the State of California and the City has provided an Apportionment Rule, the applicant or licensee can petition the City to have such rule applied to their business license tax assessment.

Issuance of Business License Tax Receipts (aka Business Tax Certificates) The current BTS application has several safe guards against releasing a Business License Tax Receipt unless all of the predetermined requirements are met. Primarily this comes in the form of such things as payment, Certificate of Occupancy issuance for commercial locations and Home Occupation Permit issuance for residential based businesses. Additionally, there can be holds due to lack of submitting Sellers permit information or other assessments values or State mandated requirements such as SB 205.

FOR PROPOSERS’ REFERENCE ONLY

City of Santa Ana
RFP No. 23-165

Below is a brief overview of the functions relating to the City of Santa Ana’s business license taxation of Medical Marijuana and Commercial Cannabis operations - Chapter 21, Article XII and Article XIII of the Santa Ana Municipal Code, respectively. (Note: the tax treatment afforded both types of cannabis operation - medicinal and non-medicinal - are generally similar but differ somewhat in detail between the two types, and with respect to Commercial Cannabis - between categories of operations as well.)

Medical Marijuana
• Currently, the City has 24 licensed Medical Marijuana operators. • All Medical Marijuana businesses are required to have an active “basic” Business License Tax account, currently assessed at $2,019 annually, which is pro-ratable by quarters depending on the business start date. This Annual Business “Basic” License Tax consists of:
o $2,000 Base Fee (Not subject to annual CPI adjustment) o $15 Registration Fee (Application Process Charge/Renewal Processing Charge) o $4 SB1168 (State) Fee
• Medical Marijuana business license accounts fall under the “Gross Receipts” category of assessment and annual basic tax fees are assessed based on an April 1 thru March 31 fiscal tax year.
• All Medical Marijuana businesses are also subject to a monthly gross receipts tax in addition to the Annual Business License Tax Basic Fees.
• The monthly tax rate is 5% of the monthly gross receipts (or gross sales) as reported by the Medical Marijuana operator. (Not subject to annual CPI adjustment) • The monthly tax remittance is due on the last day of the month following the month for which the revenue is being reported.
• A monthly tax form, which is automatically system generated, is sent to all Medical Marijuana businesses at the beginning of each month requesting that they report the total gross sales for the month prior and calculate the tax due.
• Any monthly tax remittance paid, postmarked or reported after the due date is subject to the following cumulative penalty and interest fee structure:
o 1st Month's Delinquency: = $ 10.00 or 10% of the unpaid tax (whichever is greater), and 1% interest on unpaid tax, plus
o 2nd Month's Delinquency: = $ 15.00 or 15% of the unpaid tax (whichever is greater), and 1% interest on unpaid tax, plus
o 3rd Month's Delinquency: = $ 25.00 or 25% of the unpaid tax (whichever is greater), and 1% interest on unpaid tax, plus
o 4th Month's Delinquency: = $ 50.00 or 50% of the unpaid tax (whichever is greater), and 1% interest on the merged balance, plus
o An additional 1% interest on the merged balance continuing for each month thereafter.

• Business License Tax accounts are contingent on having first procured the prerequisites, including Certificate of Occupancy permit with the Planning & Building Agency, Regulatory Safety Permit with Code Enforcement and a State Seller’s Permit. (The Planning & Building Agency Certificate of Occupancy and Regulatory Safety Permit fees do not represent assessable business license taxes, charges, or administrative fees.)

EXHIBIT IV

CITY OF SANTA ANA MEDICAL MARIJUANA AND COMMERCIAL CANNABIS BUSINESS

LICENSE TAXATION OVERVIEW

City of Santa Ana
RFP No. 23-165

• All Medical Marijuana businesses are subject to a closeout audit in the event of a transfer of ownership before the new owner can establish their business license account.

Commercial Cannabis
• Commercial Cannabis businesses consist of the following cannabis activities:
o Adult-Use Retail (including Delivery)
o Consumption Lounge
o Cultivation
o Manufacturing
o Microbusiness
o Shared Manufacturing
o Special Events/Festivals
o Testing Lab
• Currently, the City has 132 licensed commercial cannabis operators. Of those 132 licensees, there are:
o 27 Adult-Use Retail businesses
o 17 Cultivation businesses
o 41 Distribution businesses
o 17 Manufacturing businesses
o 5 Shared Manufacturing businesses
o 1 Testing Lab business
• All Commercial Cannabis businesses are required to have an active “basic” Business License Tax account, currently assessed at $2,019 annually, which is pro-ratable by quarters depending on the business start date. This Annual Business “Basic” License Tax consists of:
o $2,000 Base Fee (Not subject to annual CPI adjustment) o $15 Registration Fee (Application Process Charge/Renewal Processing Charge) o $4 SB1168 (State) Fee
• Commercial Cannabis business license accounts fall under the “Gross Receipts” category of assessment and annual basic tax fees are assessed based on an April 1 thru March 31 fiscal tax year.
• All Commercial Cannabis businesses are also subject to a monthly gross receipts tax in addition to the Annual Business License Tax Basic Fees. • The monthly tax rate set forth for each Commercial Cannabis business is based on the monthly gross sales (as reported by the operator) for the month prior, or a calculation based on the total square footage of the business’ property location (as confirmed by the corresponding “approved building set” or “approved certificate of occupancy” on file with the City of Santa Ana Planning and Building Agency), whichever is greater. The gross square footage calculation rate does not apply to Commercial Cannabis businesses located outside of the City limits, Shared Manufacturing businesses and Temporary Events/Festivals. • The monthly tax rates and gross square footage calculations for each Commercial Cannabis business activity type are as follows: (Not subject to annual CPI adjustment) Commercial Cannabis Business
Activity
Gross Receipts Tax
Rate
Gross Square
Footage Tax Rate
Adult-use Cannabis Retail Business
(including Delivery)

7%

$ 25.00
Consumption Lounge 7% $0.00
City of Santa Ana
RFP No. 23-165

Cultivation 1% $ 7.00
Distribution 1% $ 3.00
Manufacturing 1% $ 3.00
Microbusiness
Adult-Use Retail
7%
Cultivation,
Distribution,
Manufacturing
1%
Adult-Use Retail
$25.00

Cultivation
$7.00
Shared Manufacturing 1% $0.00
Testing Facility or Testing Laboratory

1%

$ 1.50

• The Gross Square Footage calculation is prorated monthly to 1/12th of the annual tax rate amount (business location square footage, times the Gross Square Footage rate, divided by 12).
• A monthly tax form, which is automatically system generated, is sent to all Commercial Cannabis businesses at the beginning of each month requesting that they report the total gross sales for the month prior and calculate the tax due based on the percentage rate or square footage rate (whichever is greater).
• Any monthly tax remittance paid, postmarked or reported after the due date is subject to the following cumulative penalty and interest fee structure:
o 1st Month's Delinquency: = $ 10.00 or 10% of the unpaid tax (whichever is greater), and 1% interest on unpaid tax, plus
o 2nd Month's Delinquency: = $ 15.00 or 15% of the unpaid tax (whichever is greater), and 1% interest on unpaid tax, plus
o 3rd Month's Delinquency: = $ 25.00 or 25% of the unpaid tax (whichever is greater), and 1% interest on unpaid tax, plus
o 4th Month's Delinquency: = $ 50.00 or 50% of the unpaid tax (whichever is greater), and 1% interest on the merged balance, plus
o An additional 1% interest on the merged balance continuing for each month thereafter • Business License Tax accounts are contingent on having first procured the prerequisites, including the Certificate of Occupancy Permit with the Planning & Building Agency, Regulatory Safety Permit with Code Enforcement and a State Seller’s Permit with the California Department of Tax & Fee Administration. (The Planning & Building Agency Certificate of Occupancy and Regulatory Safety Permit fees do not represent assessable business license taxes, charges, or administrative fees.)
• Commercial Cannabis businesses that share at least 80% underlying common ownership can be categorized as vertically or horizontally integrated. • Vertical and horizontal integration are defined as follows:
o Vertical integration shall refer to cannabis businesses operating at different points in the same supply chain from cultivation to retail sales, as long as they share at least 80% City of Santa Ana
RFP No. 23-165

underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods.
o Horizontal integration shall refer to cannabis businesses operating at the same point in the same supply chain, as long as they share at least 80% underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods.
• Commercial Cannabis businesses that are vertically or horizontally integrated are subject to:
o Business License Tax Security Deposit
• All Commercial Cannabis businesses are subject to a closeout audit in the event of a transfer of ownership before the new owner can establish their business license account.

FOR PROPOSERS’ REFERENCE ONLY

City of Santa Ana
RFP No. 23-165

City of Santa Ana
Utility Users’ Tax Monthly Tax Remittance Procedures

I. Monthly Tax Remittance:

1. Utility Users’ Tax (UUT) is a 5.5% tax charged by all utility service providers (electric, gas, telecommunications and water) and remitted to the City on a monthly basis. UUT remittance is due on the 20th day of every month.

2. Monthly remittance tax forms are automatically generated based on the active UUT utility service providers registered in the UUT database (UUT system). Currently, there are 353 active utility service providers registered in the UUT system.

3. Monthly remittance tax forms are mailed to each service provider or designated tax preparer (see attached sample).

4. Persons or businesses excluded from UUT assessment by operation of state or federal law include:
a. Insurance companies, their direct agents and the active investments (other businesses or commercial rental properties) directly owed by insurance companies. b. Government agencies, public corporations, public schools, state universities and college districts.

II. Remitting and Processing Payments:

1. Most UUT payments are remitted via check, which is mailed in along with the completed remittance tax form; however, some utility service providers will email the form and remit payment electronically via ACH.

2. When the monthly remittance tax form is received, the reported revenue figures are verified for accurate reporting and calculation and recorded into the UUT system. The check is processed by Treasury Services remittance processor or can also be processed at the cashier counter with an accompanying billing statement.

3. Any discrepancies (overages, shortages, calculation errors, missing/wrong tax remittance form, etc.) will result in a letter to the service provider or tax preparer requesting to resolve the issue.

Shortages and calculation errors or late payments that are postmarked after the 20 th day of the
month are subject to penalty and interest charges.
a. Penalty charges are calculated at 15% of the tax amount owed b. Interest charges are calculated at 0.75% of the tax amount owed per month

III. Remittance Tracking:

1. The revenues reported on the monthly tax remittance form are recorded into the UUT system.

Once the revenue figures have been entered, the UUT system will calculate the fees to verify the information entered was accurate. If the calculations match, the revenue is recorded and a charge for the tax amount due is created. If the revenues do not match, the system will indicate the correct calculations in red. The revenue may still be saved as was reported by the hotel operator or tax preparer, but the charge created will be based on the correct calculations.

2. Once the revenues have been recorded, the monthly tax remittance form is scanned into LaserFiche in the Utility Users’ Tax folder, then into the corresponding sub-folder for the reporting period being remitted. Each service provider is assigned an account number; the scanned reports are saved into the folder for the corresponding reporting period and sorted by account number.

EXHIBIT V

CITY OF SANTA ANA GENERAL UTILITY USERS’ TAXATION OVERVIEW City of Santa Ana
RFP No. 23-165

3. A master spreadsheet is also maintained to show the UUT revenue remitted for every month and every utility category. This spreadsheet shows the revenues received for the current fiscal year period, as well as the previous fiscal year period to allow year-to-year comparisons. a. This master spreadsheet is regularly updated and saved in a shared directory (I:\UTILITY USERS TAX\UUT Monthly Stats) where it can be accessed by authorized staff members in the Tax & Licensing Section.
b. The master spreadsheet is also used as a reconciliation tool to be matched up against revenue reported to Lawson as it contains the raw data as reported by the service provider or tax preparer.

4. In addition to the master spreadsheet, the UUT system also has the capability of generating financial reports:
a. The ‘Monthly Audit Report’ is a report that provides detailed payment information for all utility service providers, including reporting period, due date, amount paid, date payment was received and can be generated for any period entering specific parameters (Start Date and End Date).
b. ‘Service Type Revenue Utility Users’ Tax Report’ which can be generated by entering specific parameters (Start Date, End Date and Service Type) and will provide the total payment amount(s) recorded in UUT for each individual service provider based on the utility service type. This is also used as a reconciliation tool in concert with the master spreadsheet.

5. The UUT Code provides for an exemption from the monthly UUT assessment for residents whose maximum income levels fall within the following parameters:

Family Size Maximum Income Family Size Maximum Income
1 $ 14,300.00 4 $ 20,200.00
2 $ 14,300.00 5 $ 23,500.00
3 $ 16,900.00 6 or more $ 26,800.00 Plus $3,300.00
per person in excess of six

Low Income Exemption applications are required to be filed by May 30 th of each year and take
effect for the fiscal year beginning July 1.

City of Santa Ana
RFP No. 23-165

FOR PROPOSERS’ REFERENCE ONLY
City of Santa Ana
RFP No. 23-165

City of Santa Ana
Hotel Visitors’ Tax Monthly Tax Remittance Procedures

I. Monthly Tax Remittance:

1. Hotel Visitors’ Tax (HVT) is an 11% tax charged by all hotel operators for any guest stay and remitted to the City on a monthly basis. HVT remittance is due on the last day of every month.

2. Monthly remittance tax forms are automatically generated based on the active HVT accounts registered in the HVT database (HVT system). Currently, there are 34 active accounts registered in the HVT system.

3. Monthly remittance tax forms are mailed to each hotel operator or designated tax preparer (see attached sample).

II. Remitting and Processing Payments:

1. Most HVT payments are remitted via check, which is mailed in along with the completed remittance tax form; however, some hotel operators will come in person to remit payment at our cashier station and provide the completed tax form.

2. When the monthly remittance tax form is received, the reported revenue figures are verified for accurate reporting and calculation and recorded into the HVT system. The check i s processed by Treasury Services remittance processor or can also be processed at the cashier counter with an accompanying billing statement.

3. Any discrepancies (overages, shortages, calculation errors, missing/wrong tax remittance form, etc.) will result in a letter to the service provider or tax preparer requesting to resolve the issue.

Shortages and calculation errors or late payments that are postmarked after the last day of the month are subject to penalty and interest charges.
a. Penalty charges are calculated at 10% of the tax amount owed b. Interest charges are calculated at 1.5% of the tax amount owed per month

III. Remittance Tracking:

1. The revenues reported on the monthly tax remittance form are recorded into the HVT system.

Once the revenue figures have been entered, the HVT system will calculate the fees to verify the information entered is accurate. If the calculations match, the revenue is recorded and a charge for the tax amount due is created. If the revenues do not match, the system will indicate the correct calculations in red. The revenue may still be saved as was reported by the hotel operator or tax preparer, but the charge created will be based on the correct calculations.

2. Once the revenues have been recorded, the monthly tax remittance form is scanned into LaserFiche in the Hotel Visitors’ Tax folder, then into the corresponding sub-folder for the reporting period being remitted. Each hotel is assigned an account number; the scanned reports are saved into the folder for the corresponding reporting period and sorted by account number.

3. A master spreadsheet is also maintained to show the HVT revenue remitted for every month and every hotel. This spreadsheet shows the revenues received for the current fiscal year period, as well as the previous fiscal year period to allow year-to-year comparisons. a. This master spreadsheet is regularly updated and saved in a shared directory (I: \Hotel Visitor's Tax\HVT Monthly Stats) where it can be accessed by authorized staff members in the Tax & Licensing Section.

EXHIBIT VI

CITY OF SANTA ANA GENERAL HOTEL VISITORS’ TAXATION OVERVIEW City of Santa Ana
RFP No. 23-165

b. The master spreadsheet is also used as a reconciliation tool to be matched up against revenue reported to Lawson as it contains the raw data as reported by the hotel operator or tax preparer.

4. In addition to the master spreadsheet, the HVT system also has the capability of generating financial reports:
a. The ‘Monthly Audit Report’ is a report that provides detailed payment information for all hotels, including reporting period, due date, amount paid, date payment was received and can be generated for any period entering specific parameters (Start Date and End Date). b. The ‘Payment Summary’ report is less detailed; however, it will give a cumulative total of the payments received from each hotel based on the parameters entered (Start Date and End Date). This differs from the ‘Monthly Audit Report’ in that it does not give a breakdown of each payment received by a single hotel, for what reporting period and when the payment was received.
c. Both of these reports are also used as a reconciliation tool in concert with the master spreadsheet.

City of Santa Ana
RFP No. 23-165

FOR PROPOSERS’ REFERENCE ONLY
City of Santa Ana
RFP No. 23-165

City of Santa Ana Tourism Marketing District
Monthly Assessment Remittance Procedures

I. Monthly Assessment Remittance:

1. Tourism Marketing District (TMD) assessment is a 2% fee charged by all hotel operators with 70 rooms or more located within certain boundaries of the City and remitted to the City on a monthly basis. TMD remittance is due on the last day of every month.

2. Monthly remittance reporting forms are automatically generated based on the active TMD accounts registered in the TMD database (TMD system). Currently, there are 17 active accounts registered in the TMD system.

3. Monthly remittance reporting forms are mailed to each hotel operator or designated tax preparer (see attached sample).

II. Remitting and Processing Payments:

1. Most TMD payments are remitted via check, which is mailed in along with the completed remittance reporting form; however, some hotel operators will come in person to remit payment at our cashier station and provide the completed reporting form.

2. When the monthly remittance reporting form is received, the reported revenue figures are verified for accurate reporting and calculation and recorded into the TMD system. The check is processed by Treasury Services remittance processor or can also be processed at the cashier counter with an accompanying billing statement.

3. Any discrepancies (overages, shortages, c alculation errors, missing/wrong remittance reporting form, etc.) will result in a letter to the service provider or tax preparer requesting to resolve the issue. Shortages and calculation errors or late payments that are postmarked after the last day of the month are subject to penalty and interest charges. a. Penalty charges are calculated at 10% of the tax amount owed b. Interest charges are calculated at 1.5% of the tax amount owed per month

III. Remittance Tracking:

1. The revenues reported on the monthly remittance reporting form are recorded into the TMD system. Once the revenue figures have been entered, the TMD system will calculate the fees to verify the information entered is accurate. If the calculations match, the revenue is recorded and a charge for the amount due is created. If the revenues do not match, the system will indicate the correct calculations in red. The revenue may still be saved as was reported by the hotel operator or tax preparer, but the charge created will be based on the correct calculations.

2. Once the revenues have been recorded, the monthly remittance reporting form is scanned into LaserFiche in the Tourism Marketing District folder, then into the corresponding sub-folder for the reporting period being remitted. Each hotel is assigned an account number; the scanned reports are saved into the folder for the corresponding reporting period and sorted by account number.

3. The TMD system also has the capability of generating financial reports:
a. The ‘Monthly Audit Report’ is a report that provides detailed payment information for all hotels, including reporting period, due date, amount paid, date payment was received and can be generated for any period entering specific parameters (Start Date and End Date). b. The ‘Payment Summary’ report is less detailed; however, it will give a cumulative total of the payments received from each hotel based on the parameters entered (Start Date and End Date). This differs from the ‘Monthly Audit Report’ in that it does not give a breakdown

EXHIBIT VII

CITY OF SANTA ANA GENERAL TOURISM MARKETING DISTRICT OVERVIEW City of Santa Ana
RFP No. 23-165

of each payment received by a single hotel, for what reporting period and when the payment was received.

City of Santa Ana
RFP No. 23-165

FOR PROPOSERS’ REFERENCE ONLY
City of Santa Ana
RFP No. 23-165

Below is a brief overview of the City of Santa Ana’s PREP Program – Chapter 8 Article X Division 2 of the Santa Ana Municipal Code. [Note: the PREP is a program administered by the Planning and Building Agency, Code Enforcement Division but utilizes the Business Tax System (BTS) for billing and customer service information (CSI) purposes.] The current Business Tax System carries a one to one account ratio between PREP accounts and its corresponding “residential rental” type Business Tax account.

Purpose
• Currently, the City has 7,225 PREP accounts accounting for 34,638 residential units and 35 Gold Seal accounts for 4,437 units.
• PREP involves an inspection of residential rental units to ensure acceptable standards of zoning, building, and fire code compliance.
• The purpose of the PREP inspection is to promote public health and safety for occupants living in residential rentals within the City of Santa Ana through effective code enforcement of the Santa Ana municipal code.
• Practice of this program reduces safety hazards for occupants by identifying and correcting code violations within the building structure, including, plumbing, heating, and electrical systems. • The PREP and Gold Seal Incentive Program new ordinance became effective July 1, 2016 (Ordinance No. 2898).

Fees
• PREP is currently assessed at $29.00 per unit, annually. • All Residential Rentals are required to have a PREP account along with their Residential Rental Business License; PREP accounts are created jointly with Residential Business licenses. • The fee billing period for PREP is from July 1
st – June 30th, with a due date of June 30th.
• Fees are not prorated.
• Any payment received after the due date without a postmark will be assessed past due penalties from the following penalty and interest fee structure:
o 1st Month's Delinquency: = $ 10.00 or 10% of the unpaid tax (whichever is greater), and 1% interest on unpaid tax, plus
o 2nd Month's Delinquency: = $ 15.00 or 15% of the unpaid tax (whichever is greater), and o 1% interest on unpaid tax, plus
o 3rd Month's Delinquency: = $ 25.00 or 25% of the unpaid tax (whichever is greater), and 1% interest on unpaid tax, plus
o 4th Month's Delinquency: = $ 50.00 or 50% of the unpaid tax (whichever is greater), and 1% interest on the merged balance, plus
o An additional 1% interest on the merged balance continuing for each month thereafter

Inspection
• The property is inspected once every four years, unless, exempt from inspection by the division. • Inspections consist of 3 different inspection levels with a standardized checklist applicable to all inspection levels:
o Level One Inspection: only the exterior of the property will be inspected; violations may include: trash, poor landscaping, lack of paint, unapproved exterior alterations. o Level Two Inspection: may be used to inspect multi-family homes exterior, common areas, and 20% of selected units.

EXHIBIT VIII

CITY OF SANTA ANA PROACTIVE RENTAL ENFORCEMENT PROGRAM (PREP) City of Santa Ana
RFP No. 23-165

o Level Three Inspection: interior inspection of multifamily or single family properties. • Notice of inspection results are mailed to the property owner’s address within 30 days of inspection.
• If a property owner is to receive Notice of Violation, Administrative Citation or Notice and Order, they are to correct all noted violations before the compliance due date listed on the Notice of Violation, Administrative Citation or Notice and Order to avoid citations or penalties and interest. • The owner must obtain applicable permits and pay permit fees and citations prior to receiving final City approval of compliance.

SAMC CHAPTER 6 – SINGLE-FAMILY RESIDENTIAL GUIDELINES (ONE- AND TWO-FAMILY UNITS) Figure 6-54d: Examples of parking, access and circulation configurations

Exemptions
• Legal units or rooms rented to single individuals in an owner occupied single family residence. • Immediate family members who are renting the residential unit and whose cost of rent does not exceed the cost of maintaining legal ownership.
• Approved Gold Seal Incentive Program residential rental (Program having met excellence in property maintenance; must be approved and valid for only 4 years)

FOR PROPOSERS’ REFERENCE ONLY
City of Santa Ana
RFP No. 23-165

Chapter 21 LICENSES1
ARTICLE I. DEFINITIONS
Sec. 21-1. Short title; purpose—Defined.

This chapter shall be known as the "Business License Tax Code." It is enacted solely to raise revenue for municipal purposes and is not intended for regulation.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-2. Definitions—General.

Whenever any words or phrases used in this Chapter are not defined herein but are defined elsewhere in this Code, such definitions are incorporated herein and shall apply to such words and phrases used in this Chapter unless the content clearly indicates a different intent. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-3. Definitions—Specific.

As used in this Chapter, the following words, terms, or phrases shall have the meaning hereinafter set forth:

Annualization shall mean an estimation, extended for a twelve (12) month period, based o n reported gross receipts for a prior period of less than twelve (12) months. 1Editor's note(s)—Ord. No. NS-1922, adopted July 20, 1987, amended Ch. 21 in its entirety to read as herein set out. Formerly Ch. 21, consisted of §§ 21-1—21-10, 21-21—21-27, 21-39—21-57, 21-69—21-72, 21-72a—21- 72d, 21-72f—21-72h, 21-72j, 21-72k, 21-72p, 21-72r—21-72t, 21-72w, 21-73, and 21-74, pertained to similar subject matter and derived from 1952 Code §§ 4118, 6100, 6110, 6110.1, 6110.2, 6111, 6113- 6116, 6116.1, 6116.2, 6116.4, 6116.5, 6117, 6120, 6120.1-6120.4, 6121, 6122, 6122.2, 6123, 6124, 6124.2-6124.4, 6125, 6125.1—6125.3, 6126, 6130, 6131, 6350, 6351.1, 6358.1—6358.3, 6358.5, 6358.6, and 6390.7, and the following:

Ord. No. Section Date Ord.No. Section Date
NS-118 7-18-55 NS-1237 13 5-12-75
NS-545 1-16-61 NS-1239 1 12- 9-74
NS-718 1 2-17-64 NS-1401 1, 2 1- 3-78
NS-766 1 12-21-74 NS-1690 1—16 7- 5-83
NS-815 1 8-16-65 NS-1754 1, 2 12-17-84
NS-1176 2—4 11-19-73 NS-1823 1 12-16-85
NS-1235 3 12- 9-74 NS-1850 1 7- 7-86
Cross reference(s)—Firearms sales, § 10-500 et seq.

EXHIBIT IX
SANTA ANA MUNICIPAL CODE - CHAPTER 21 LICENSES
City of Santa Ana
RFP No. 23-165

Applicant shall mean any person who applies for a license or a license renewal under the provisions of this Chapter.

Automobile dismantler shall mean any person who has an established place of business and is engaged in the business of buying, selling, or dealing in vehicles of a type required to be registered pursuant to Section 220 of the California Vehicle Code, as the same now exists or as hereafter amended, for the purpose of dismantling the same, who buys or sells the integral parts and component materials thereof, in whole or in part, or deals in used motor vehicle parts. This section does not apply to the occasional and incidental dismantling of vehicles by dealers who have secured dealers' plates from the California Department of Motor Vehicles and whose principle business is buying and selling new and used vehicles, or by owners who desire to dismantle not more than three (3) personal vehicles within any twelve (12) month period.

Builder-owner shall mean any person employing subcontractors, specialty contractors, general engineering contractors, or workers under his or her supervision and direction by the hour or day, for the purpose of constructing improvements on real property owned by him or her within the city; such person shall be taxed herein the same as a contractor unless his or her only building activity is constructing on his or her property a single family dwelling unit or addition thereto which will be used in whole or in part for the purpose of his or her own occupancy for a period of not less than one year. Proof of the sale or offering for sale of any such structure by the builder-owner within one year after completion of same is presumptive evidence that su ch structure was undertaken for purpose of sale. Provided, however, that any person holding a state contractor's license pursuant to Sections 7056, 7057, and 7058 et seq. of the California Business and Professions Code, as the same now exists or as hereafter amended, shall be considered a contractor.

Building and loan shall mean any person who for a fee engages in the loan of money upon personal security, automobile, or any personal property, evidences of debt, or purchases automobile contracts, commercial paper, assignments of salary, salary warranty, salary demands, time checks, or other evidences of salary due or to become due, or automobile paper. The term building and loan as used in this Chapter includes savings and loans, but does not include pawnbrokers or the holder of a bond brokers license, or any person conducting a banking business under the laws of the state or any person subject to the state corporate income tax as a financial corporation.

Building-tradesman shall mean any person engaged within the city as an independent contractor in any trade, art, calling, avocation or occupation of the building trades and not licensed as a contractor by the state.

Business shall include all activities engaged in or caused to be engaged in within the city, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, including rental of residential or commercial real estate, and every other kind of activity whether or not carried on for gain or profit, and whether or not engaged in as a principal or as an independent contractor, but shall not include the services rendered by an employee to his employer.

Business license receipt shall mean the receipt required to be posted or displayed as evidence of a business' payment of the tax required by the provisions of this Chapter and shall herein be referred "license receipt" or "license" except as otherwise specified.

Business license tax shall mean the privilege tax paid as required by the provisions of this Chapter and shall herein be referred to as "business or license tax" or "fee" except as otherwise specified.

Charge shall mean any fee fixed herein which is intended solely to cover the reasonable administrative cost incurred in performing any specified act on behalf of any person or at any person's request for which said person shall be liable except as otherwise specified hereinafter.

Coin-operated machine or device shall mean any machine or device that dispenses a product, or provides a service, or utility or amusement; resulting from insertion or use of a coin, slug, token, plate, disc, plug, key, check or other device, or money, or thing of value.

Collector shall mean the finance director or other city officer charged with the administration of this Chapter.

City of Santa Ana
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Commission agent, broker or merchant shall mean any person engaged in the business of buying and selling of goods, wares, or merchandise for the owner or consignee thereof for a fee or commission, whether or not the operation of such business customarily includes the actual possession, custody or control of goods, wares or merchandise to the extent that such person (1) does not engage in the business of manufacturing, refining, fabricating, milling, treating or other processing of the goods, wares or merchandise bought and sold, and does not cause said goods, wares or merchandise to be manufactured, refined, fabricated, milled, treated or otherwise processed; (2) does not obtain or retain title to said goods, wares or merchandise except during one or more of the following situations: while such goods, wares or merchandise are actually in transit, or for short periods of time before transportation commences or after it ceases; and (3) does not store or warehouse such goods, wares or merchandise except during one or more of the following situations: while such goods, wares or merchandise are actually in transit, or for short periods of time before transportation commences or after it ceases.

Contractor shall mean any person who is licensed as a contractor by the State of California and who undertakes to or offers to undertake to or purports to have the capacity to undertake to or submits a bid to, or does himself or by others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith. The term contractor as used in this Chapter includes general engineering contractor, general building contractor, specialty contractor and subcontractor except as otherwise specified herein.

Cost of doing business shall mean that amount which is equivalent to the volume of business performed, where the business of any local office, facility, agent, broker or employee is that of performing administrative or management related services in connection with sales or services performed or rendered elsewhere. Said amount shall be computed by determining the total cost of maintaining said local office, facility, agent, broker or employee. Said total cost of maintaining said local office, facility, agent, broker or em ployee shall include, but is not limited to, the wages, salaries, commissions, bonuses, rent, and/or depreciation, telephone, postage, utilities, janitorial and other expenses allocated for maintenance of said office, facility, agent, broker or employee.

Cost of said premises shall mean that amount which is equivalent to the cost directly related to maintaining any single-family residential rental property or other undivided single residential rental premises where said cost is shared between the owner or leaseholder and any other individual or individuals as co -residents or where said cost is borne by an immediate relative related by blood, adoption or marriage as resident. The term immediate relative as used herein shall be limited to the following classes of individuals: mothers and fathers, grandmothers and grandfathers, sons and daughters, grandsons and granddaughters, brothers and sisters, and husbands and wives. Said amount shall include, but is not limited to: mortgage costs, title and homeowner prop erty insurance premiums, property taxes, homeowner or condominium association costs; other costs or expenses arising from contractual obligations relating to maintaining ownership or leasehold interest in said premises; and the cost of utilities, maintenance or other related services for which the owner or leaseholder is liable.

Disabled veteran shall mean any honorably discharged member of the armed forces of the United States, who is physically unable to obtain his livelihood by means of manual labor and who is a qualified voter of the state.

Employee shall mean all individuals who are engaged in the operation or conduct of any business and whose consideration for services rendered is in the form of a regular salary or wage.

Engaged in business shall mean the transacting and carrying on, managing or operating of a business whether done as owner or by means of an officer, agent, manager, employee or lessee.

Fixed place of business shall mean the premises primarily occupied for the particular purpose of conducting the business thereat and regularly kept open for that purpose with a competent person in attendance for the purpose of attending to such business, except that an auto -car wash, auto-laundromat or similar self-service business shall be considered a "fixed place of business" whether or not anyone is in attendance, and a warehouse shall be considered a "fixed place of business" whether or not anyone is in attendance and whether or not the premises is regularly kept open.

City of Santa Ana
RFP No. 23-165

Flat rate or flat rate tax shall mean a fixed amount assessed per business location or, alternatively, a fixed amount assessed for the privilege of engaging and transacting in business activity within the city from place to place.

General contractor shall include any general building contractor or general engineering contractor or any other person who is licensed pursuant to Sections 7056 and/or 7057 of the California Business and Professions Code as the same now exists or as hereafter amended.

Gross receipts shall include the total amount of the sale price of all sales and the total amount charged or received for the performance of any act or service of whatever nature it may be, for which a charge is made or credit allowed, 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. The following shall be included in "gross receipts": all receipts, rents, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of property sold, the cost of materials used, labor or service cost, interest paid or payable, or losses or other expenses whatsoever.

The following shall be excluded from "gross receipts":
(a) Cash discounts allowed and taken on sales;
(b) Credit allowed on property accepted as part of the purchase price and which property may later be sold;
(c) Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
(d) Such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit;
(e) Amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those for whom collected, provided the agent or trustee has furnished the collector with the names and addresses of the others and the amounts paid to them, other than amounts received as commissions or fees earned, or charges of any character made or compensation of any character received for the performance of any service as agent or trustee; provided that any agent or trustee dealing in stocks or 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 therefrom. No deduction from receipts attributable to trading as a principal shall be made unless such deduction is provided for in this section; (f) The difference between the balance owed and paid on a defaulted purchase or finance contract upon repossession by seller and the amount received from resale of the repossessed article by the repossessing seller;
(g) Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded;
(h) As to alcoholic beverages, that portion of the receipts of a manufac turer, transporter, retailer or wholesale distributor generated or otherwise collected from the manufacture, transport, retail or wholesale of intoxicating liquors within the state pursuant to Article XX, Section 22 of the State Constitution;
(i) As to a retail gasoline dealer, a portion of his or her receipts from the sale of motor vehicle fuels equal to the motor vehicle fuel license tax imposed by and previously paid under the provisions of Part 2 of Division 2 of the State Revenue and Taxation Code, as the same now exists or as hereafter amended; City of Santa Ana
RFP No. 23-165

(j) As to a retail gasoline dealer, the special motor fuel tax imposed by Section 4041 of Title 26 of the United States Code, as the same now exists or as hereafter amended, if paid by the dealer or collected by him or her from the purchaser;
(k) Cash value of sales, trades, transfers or other transactions as made between separate departments, divisions or units of any single business entity;
(l) Sales for convenience where sales of new goods, wares or merchandise are made by a person engaged in selling such articles to another person engaged in selling like or similar articles:
(1) Where 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;
(2) 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 (3) Where goods, wares or merchandise of like or similar kind and of substantially equivalent value to that which was sold is received in consideration.

As to general contractors and other similar businesses, "gross receipts" shall not include that portion of the receipts of a general contractor which represents payments to subcontractors, provided that such subcontractors are licensed under this Chapter and provided the general contractor furnishes the collector upon request with the names and addresses of the subcontractors and the amounts paid to them.

As to bail bond brokerages, commission agent brokerages, mortgage brokerages, real estate brokerages, securities brokerages, travel agencies, and other similar businesses employing agents, brokers and/or commissioned employees, "gross receipts" shall include the total gross commissions or other receipts attributable to the local office, agents, brokers and/or employees.

As to accountants, architects, attorneys, chiropractors, doctors, dentists, optometrists, podiatrists, psychologists, veterinarians and other professionals, either practicing solely or in partnership or as a professional corporation, "gross receipts" shall include the total gross fees or other receipts attributable to services performed or otherwise rendered within the city.

As to other persons having a fixed place of business within the city and providing a service or plying an occupation or trade or involved in similar businesses, "gross receipts" shall include the total fees, commissions or other receipts attributable to that local location and/or employees.

As to a business established outside the city but maintaining a local office or establishment or facility, within the city through an agent, broker or employee, "gross receipts" shall include the total sales or receipts attributable to the local office or establishment or facility, agent, broker or employee.

As to a business established outside the city but transacting and carrying on business within the city, or otherwise performing or rendering services negotiated or contracted for within the city, whether or not by a principal or through an agent or employee, "gross receipts" shall include the total fees, commissions or other receipts attributable to the business activity conducted.

As to any business, whether established within or established outside the city, in the event separate sales or receipt records are not maintained for a local office or establishment or facility, agent, broker or employee, or in the event any retailing, wholesaling, manufacturing or processing activity conducted thereat does not generate gross receipts as hereinabove defined, or in the event said local office or establishment or facility, agent, broker or employee is engaged in providing administrative or management related services, to in clude, but not limited to, record keeping, data processing, research and development, advertising, public relations, personnel administration or legal services, in connection with sales or services performed or rendered elsewhere, the business tax shall be based upon an amount which bears the same proportion to the total gross receipts of the business which cost of maintaining said local office, facility, local agent, broker or employee bears to the total cost of maintaining said City of Santa Ana
RFP No. 23-165

business. Alternatively, at the election of an applicant or licensee, the business tax may be based on an amount equivalent to the cost of maintaining said business without reference to the total gross receipts of the business. As used herein the phrase "cost of maintaining said business" shall have the same meaning as "cost of doing business".

Independent contractor shall mean any natural person other than a state licensed contractor, who is engaged to aid in the business of any other person, whether as a professional as defined hereinbelow or whether pursuant to any license, certificate or registration authorized by the California Business and Professions Code, as the same now exists or as hereafter amended, or whether with regard to any other trade, skill or occupation, and who receives remuneration either through commission or pursuant to any contract of employment which excludes regular wages or salary, or in any other manner other than through regular wages, salary or a direct participation in the profits of the business.

Insurance agent shall mean any person, including bailbond agents, directly authorized by and on behalf of an insurer to transact insurance and to bind the insurer in the execution of insurance policies.

Insurance broker shall mean any person, including bailbond brokers, who, for compensation and on behalf of another person, transacts insurance other than life with, but not on behalf of, an insurer.

Insurance solicitor shall mean a natural person employed to aid an insurance agent or insurance broker in transacting insurance other than life.

Itinerant merchant shall mean any person who engages in a temporary or transient business in the city, selling or offering for sale goods, wares, merchandise or things or articles of value, with the intention of conducting such business in the city for a period of not more than ninety (90) days in any calendar year and who, for the purpose of carrying on such business, hires, leases or occupies any room, doorway, vacant lot, building or structure for the exhibition or sale of goods, wares or merchandise, or who associates temporarily with any local dealer, trader, merchant or auctioneer, or who conducts such temporary or transient business in connection with or as a part of or in the name of any local dealer, trader, merchant or auctioneer.

Junk collection shall refer to the use of any vehicle by any person for the purpose of traveling from place to place or from street to street to purchase and collect any rags, bottles, papers, cans, metals or other junk.

Junk dealer shall mean any person having a fixed place of business in the city engaged in the business of buying or selling, either at wholesale or retail, any rags, bottles, papers, cans, metals or other junk.

Junk salvager, junk collector or junk recycler shall mean any person at a fixed place of business in the city engaged in the business of carrying on or collecting, buying or selling at either retail or wholesale or otherwise dealing in junk and/or rubbish, waste material, refuse and/or any rags, sacks, bottles, papers, cans, metals, rubber, cordage, tires and other like articles, whether the same can be sold or otherwise disposed of for the purpose of being treated, repaired or prepared so as to be used again in some other for m.

Junk yards, automobile wrecking yards, and salvage yards shall include any space of two hundred (200) square feet or more of area of any lot used for the storage, sale, keeping or abandonment of inoperable vehicles, junk or waste material, including scrap metal or other scrap materials, or for the dismantling, demolition or abandonment of automobiles, other vehicles, machinery or parts thereof, other than an impound yard.

Leaseholder or leasehold interest as applied to any real property shall mean any person who possesses or shares an estate in realty held under lease. As applied to any dwelling, building, structure, premises or portion thereof located on such real property, the term "leaseholder" and/or "leasehold interest" shall mean any person who possesses or shares in a contract for exclusive possession or control of any such dwelling, building, structure, premises or portion thereof for a limited time.

Leaseholder-lessor as applied to commercial or residential real estate shall mean any person who, while in possession of a leasehold or leasehold interest in any commercial or residential real estate, acts as a lessor by City of Santa Ana
RFP No. 23-165

engaging in the subleasing, subletting, providing, exchanging or trading of any such real property, dwelling, building, structure, premises or portion thereof without loss of leasehold.

Licensee shall mean any person who holds a valid, current business license issued to that person under this Chapter.

Life agent shall mean any insurance agent authorized, by and on behalf of a life, disability or life and disability insurer, to transact life, disability or life and disability insurance.

Life and disability insurance analyst shall mean a person who, for a fee or compensation of any kind, paid by or derived from any person or source other than an insurer, advises, purports to advise, or offers advice to any person insured under, named as a beneficiary of, or having an interest in, a life or disability insurance contract, in any manner concerning that contract or his or her rights in respect thereto.

Manufactureor process shall embrace all the activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different or useful article of tangible personal property or substance of trade or commerce is produced and shall include the production or fabrication of specially made or custom made articles.

Manufacturer shall mean any person who, directly or by contracting with others for the necessary labor o r mechanical services, manufactures for sale or for commercial or industrial use from his or her own materials or ingredients any articles, substances or commodities.

Owner, ownership, or ownership interest as applied to any real property shall include the legal property owner of record as recorded by the office of the county assessor and in addition thereto shall include, whether recorded or unrecorded, any owner, any part owner, joint owner, tenant in common, tenant in partnership, joint tenant, or tenant by the entirety, copartnerships of the whole or of a part of such real property, or a person having an interest in community property as a member, or former member, of the community. As applied to any dwel ling, building, structure or premises located on such real property the term "owner," "ownership," or "ownership interest" shall include the legal owner, and in addition thereto shall include any part owner, joint owner, tenant in common, tenant in partnership, joint tenant, or tenant by the entirety, copartnerships of the whole or of a part of such dwelling, building, structure or premises, or a person having an interest in community property as a member, or former member, of the community.

Owner-lessor as applied to commercial or residential real estate shall mean any person who, while an owner or while having an ownership interest in any commercial or residential real estate, acts as a lessor by engaging in the leasing, renting, providing, exchanging or trading of any such real property, dwelling, building, structure, premises or portion thereof without loss of ownership.

Pawnbroker shall mean any person conducting, managing or carrying on the business of loaning money either for himself or herself or for any other person, upon any personal property, personal security, or purchasing personal property and reselling or agreeing to resell such property to the vendor or other assignee at prices previously agreed upon. Nothing in this section shall be deemed to apply to the loaning of money on personal property or personal security by any bank authorized to do so under the laws of the state or of the United States.

Peddler shall mean any person who sells and makes immediate delivery or offers for sale and immediate delivery any goods, wares, merchandise, service or thing in possession of the seller, at any place in the city other than at a fixed place of business, and shall include any person who sells or offers for sale any food or produce from a pushcart or other nonvehicular device but shall not include salespersons or agents for wholesale houses or firms who sell to retail dealers for resale or sell to manufacturers for manufacturing purposes or to bidders for public works or supplies.

Person shall include, without limitation, all domestic and foreign corporations of any kind, all firms and companies (holding, joint stock, private, public, parent, pass-through, professional, operating, operating property, non-profit, subordinate and subsidiary), partnerships of every kind including but not limited to (general partnerships, limited partnerships, master limited partnerships, limited liability partnerships, limited liability City of Santa Ana
RFP No. 23-165

limited partnerships, professional partnerships, and publically traded partnerships), pr ivate trusts, Massachusetts business or common law trusts, real estate investment trusts, royalty trusts, estates, associations, syndicates, clubs, joint ventures, unincorporated business organizations, limited liability companies of every kind including but not limited to (sole member limited liability companies, multi member limited liability companies, non -profit limited liability companies, and series limited liability companies), cooperatives, all other types of business entities defined or authorized under federal and state laws, receivers, trustees, guardians or other representatives appointed by order of any court, and any natural individuals transacting and carrying on any business in the city other than as an employee.

Premises shall include all lands, buildings, accessory buildings or structures erected or modified, equipment and appurtenances connected or used therewith, and any personal property affixed to or otherwise used for the purpose of transacting and carrying on any business on such premises.

Processor shall mean any person engaging in the business of converting an article, substance or commodity into marketable form for the purpose of resale by changing its physical form or chemical composition.

Professional shall mean any person, including any professional corporation, wherever located, engaged in or carrying on within the city any profession requiring satisfactory compliancy with written and/or oral examination standards adopted by a branch of the state or federal government and/or requiring a certain amount of tenure with such branch of government; such professions to include but not be limited to: architect (all types), attorney, accountant (all types), audiologist, chiropractor, clinical social worker, dentist, drugless practitioner, electrologist, engineer (all types), geologist, herbalist, marriage, family and child counselor, mortician, naturopath, optician, optometrist, osteopath, physician (all types), podiatrist, psychologist, registered nurse (as shareholder in a professional corporation), speech pathologist, surveyor, veterinarian.

Professional corporation shall mean any corporation organized under the California General Corporation Law which is engaged in rendering professional services in a single profession, or as otherwis e authorized pursuant to Section 13400 et seq. of the California Business and Professions Code, as the same now exists or as hereafter amended, and which in its practice or business designates itself as a professional or other corporation as may be required by statute.

Property or real property as applied to commercial or residential real estate shall mean recorded assessor's property parcel, as identified by county assessor's parcel number.

Real estate agent shall mean any person licensed as such by the state and engaged wholly or in part in transacting and carrying on the sale of real estate.

Real estate broker shall mean any person licensed as such by the state and engaged wholly or in part in transacting and carrying on the sale of real estate including soliciting or offering to buy, sell or lease real property for others; negotiating and collecting loans for borrowers or lenders; dealing in real property sales contracts and promissory notes; receiving advance fees for real estate listings; and dealing in real estate syndicate securities.

Real estate developer shall mean any person conducting, managing or transacting and carrying on the business of acquiring, subdividing, improving, selling, renting and otherwise dealing in and disposing of or developing real property for commercial, industrial, residential or nonresidential purposes including, but not limited to, one who constructs improvements upon real property for commercial, industrial, residential or nonresidential purposes with the object of selling, renting or developing it for his or her own use.

Recreational services shall mean any person engaged in the business of providing facilities for recreational use; such services to include, but not be limited to: amusement machine arcades, bowling all eys, driving ranges, golf courses (including miniature), motion picture theaters (including drive -in), pool halls (including billiards and snooker), riding stables, skating rinks, social clubs, sports clubs (including spas, health clubs and conditioning gyms), swimming pools and tennis and racket clubs.

Rental of commercial real estate shall include every person, whether as an owner-lessor or leaseholder- lessor, engaged in the business of leasing, renting, subleasing, subletting, providing, exchanging or t rading without City of Santa Ana
RFP No. 23-165

loss of ownership or leasehold any real property, dwelling, building, structure, premises or portion thereof for industrial, commercial, office, warehouse or other entrepreneurial uses or purposes other than for the immediate use or purpose of dwelling, sleeping, lodging or general residency. Provided, however, that the leasing, renting, subleasing, subletting, providing, exchanging or trading without loss of ownership or leasehold of any real property, dwelling, building, structure, premises or portion thereof to another for the purpose of their independent commercial operation of an apartment building, apartment house, boarding house, guest house, mobile home park, nursing home, residential care facility, rooming house, or hotel or motel the reat shall be deemed to constitute a rental of commercial real estate.

The license tax for the rental of commercial real estate shall be assessed per property, and liability for said tax shall be determined by owner's-lessor's ownership of, or leaseholder's-lessor's leasehold interest in, said property. Independent property management agents acting for property owners -lessors or property leaseholder- lessors are responsible for payment of the license tax on the rental of such property, if the owner -lessor or leaseholder-lessor of said property has not paid the tax when due and payable and, in addition, are subject to the license tax as a separate business.

Provided, however, that where any one dwelling, building, structure or premises is comprised of one (1) or more contiguous properties, then the owner-lessor or leaseholder-lessor owning or controlling said building, structure or premises may, upon submission of acceptable documentary proof thereof, obtain a single consolidated business license tax assessment. Further provided that where an owner -lessor or leaseholder-lessor owns or controls two (2) or more separate buildings, structures or premises located on the same property, or two (2) or more buildings, structures or premises located on separate but contiguous properties, then the owner -lessor or leaseholder-lessor owning or controlling said buildings, structures or premises may, upon submission of acceptable documentary proof thereof, obtain a single consolidated business license tax assessment.

Rental of residential real estate shall include every person, whether as an owner-lessor or leaseholder-lessor, engaged in the business of leasing, renting, subleasing, subletting, providing, exchanging or trading without loss of ownership or leasehold any real property, dwelling, building, structure, premises or portion thereof, except for any hotel or motel, for the immediate purpose of dwelling, sleeping, lodg ing, boarding or other such occupancy, accommodation or general residency.

The license tax for the rental of residential real estate shall be assessed per property, and liability for said tax shall be determined by owner's-lessor's ownership of, or leaseholder's-lessors's leasehold interest in, said property. Independent property management agents acting for property owner -lessors or property leaseholder- lessors are responsible for payment of the license tax on the rental of such property, if the owner -lessor or leaseholder-lessor of said property has not paid the tax when due and payable and, in addition, are subject to the license tax as a separate business.

Provided, however, that where any one dwelling, building, structure or premises is comprised of o ne (1) or more contiguous properties, then the owner-lessor or leaseholder-lessor owning or controlling said building, structure or premises may, upon submission of acceptable documentary proof thereof, obtain a single consolidated business license tax assessment. Further provided that, where an owner -lessor or leaseholder-lessor owns or controls two (2) or more separate buildings, structures or premises located on the same property, then the owner-lessor or leaseholder-lessor owning or controlling said dwellings, structures or premises may, upon submission of acceptable documentary proof thereof, obtain a single consolidated business license tax assessment.

Nothing in this section shall be construed to require the payment of a business license tax where any owner or leaseholder resides in a single-family residence or other undivided single residential rental premises and participates with one (1) or more other co-residents in the shared cost of said premises. Neither shall this section be construed to require the payment of a business license tax for the rental of a single- family residence or other undivided single residential rental premises as between an owner or leaseholder and any individual immediately related by blood, adoption or marriage to said owner or leaseholder, where the remuneration rendered to said owner or leaseholder does not exceed the cost of said premises.

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Eligibility for the business license fee exemption herein provided is restricted to owners or leaseholders who are natural persons and whose ownership of or leasehold interest in said residential rental property is undivided.

An owner or leaseholder claiming a license fee exemption hereunder shall have the burden of furnishing to the collector such information as the collector may require to support the claim of eligibility for exemption.

Nothing in this section shall be construed to relieve any person who is eligible for or claims to be eligible for exemption from payment of any required residential rental property business license fee from the requirement to obtain said business license in the same manner and at the same time as is required under the terms of this Chapter of all other persons applying for a business license, and such person shall be subject to the same procedures for enforcement and for penalties as provided herein.

Rental unit shall mean the smallest accommodation for which a fee is charged or received.

Retailer shall mean any person engaging in the business of selling goods, wares or other merchandise to consumers or end-users thereof.

Revenue officer shall mean the duly authorized agent of the collector charged with assisting the collector in the exercise of the duties imposed upon him or her hereunder.

Sale shall include the transfer, in any manner or by any means whatsoever, of title to property for a consideration; the serving, supplying or furnishing for a consideration of any property; and a transaction whereby the possession of property is transferred and the seller retains the title as security for the payme nt of the price shall likewise be deemed a sale. The foregoing definitions shall not be deemed to exclude any transaction which is or which, in effect, results in a sale within the contemplation of law.

Sale at retail and retail sale shall mean every sale of tangible personal property (including articles produced, fabricated or imprinted) other than sale to one who (1) purchases for the purpose of resale as tangible personal property in the regular course of business, or (2) purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component, or as a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale.

Sale at wholesale and wholesale sale shall mean any sale of tangible personal property which is not a "sale at retail." Sales otherwise classified hereinabove as "retail sales" may, nevertheless, be classified as "wholesale sales" under this section, if the vendor can establish to the satisfaction of the collector that the sale was made to a government agency, public utility, manufacturer, processor or contractor who consumed the articles in the course of his or her own operations and did not offer the articles for resale to the general public except as an integral part of manufacturing, construction or service.

Service fee shall mean a fixed fee, specified by resolution of the city council, which is intended solely to cover the reasonable administrative costs incurred in redeeming dishonored or stopped payments, in performing audits, collections, inspections, investigations, and the administrative enforcement of this Chapter and adjudication thereof.

Services shall mean the business of providing, maintaining or performing labor for the benefit of another within the city; of supplying some general demand for the benefit of another within the city which does not produce a tangible commodity; or furnishing of services and all activities in which any person for any other person performs any personal service and all services in which any real or personal property, stocks or bonds , or other financial instruments or evidences of debt, or contracts of insurance or any money or credits are exchanged, leased, transferred or loaned; as well as every business of maintaining, storing, cleaning, improving or repairing tangible commodities within the city whether or not such business is conducted from a premises, vehicle or mobile location within or outside the city. Services include recreation services but do not include theatrical performances, exhibitions or temporary amusements, nor do they include professional services or telephone services within the terms of this Chapter.

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Solicitor shall mean any person who engages in the business of going from house to house, place to place, on or along the streets, within the city and/or by telephone, soliciting any opinions, preferences, endorsements or other information, or selling or taking orders for or offering to sell or take orders for goods, wares or merchandise or other things of value for future delivery or for services to be performed in the future.

Stock broker and bond broker shall mean any person engaged in the business of buying or selling federal, state, county or municipal stocks or bonds, or stocks and bonds of partnerships or other incorporated entities, or evidences of indebtedness of private persons, partnerships or of incorporated entities, for a fee or commission.

Sworn statement shall mean an affidavit sworn to before a person authorized to take oaths, or a declaration, certification, or verified affidavit made under penalty of perjury.

Telephone services shall mean any person engaged in the business of providing telephone services as a "telephone company" pursuant to Article XIII, Section 19 of the State Constitution.

Transact and carry on means to repeat, or intend to repeat, or to continue and includes:
(a) The maintaining, operating, managing or being in control of, or right to make use of directly or remotely, any office, store, warehouse, factory, establishment, premises, location or place:
(1) Having one (1) or more telephones listed for any business activity in any classified telephone directory or in the classified Section of any consolidated telephone directory, or in any combined online directory or internet/web based listing service, (2) Having computers or other computing devices used to maintain one (1) or more internet websites or webpages or maintaining internet/web based advertising, (3) Having in use in connection with any business one (1) or more counters, desks, chairs, tables, filing cabinets, typewriters, adding or calculating machines, computers, servers, printers, scanners, fax machines or other articles of office equipment, (4) At, from, or in which any processing, manufacturing, supervising, administration, management, research, sales or sales promotion, peddling, solicitation, warehousing, distributing, routing, delivery, mail or package receipt, recycling, dispatching, billing, collection, accounting, computing, product development, software development, testing, storage, record -keeping or other activity is conducted in connection with any business, (5) In or at which one (1) or more persons may, for any valuable consideration intended to result, or that results, in any livelihood, financial profit or commercial gain to any person, receive any instruction, advice, treatment or examination, or any service upon their person, or any repair, refinishing, renewing, cleaning, or other improvement to, or of, any personal property, (6) In which any letter, announcement, advertisement, circular, handbill, newspaper, agreement, contract, instruction, legal instrument, government required registration, permit or license, tax filing statement, financial statement, statement of account, financial record, or any other instrument or record is written, printed, reproduced, published, prepared or kept in connection with any business,
(7) From which any circular, handbill, newspaper, announcement, statement of account, card or letter is sent or distributed, in writing, or any contract is made, in person or by telephone, in connection with any business,
(8) Upon any exterior side, wall, window, door, roof or other portion, or in the proximity of which, there is maintained any sign, lettering, announcement or advertisement indicating that such office or place is one (1) in, at or from which any article exists, or any act is performed in connection with any business;
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(b) The repeated or continuous offering, or contracting, orally or in writing, in connection with any business:
(1) To sell or rent one (1) or more articles, or one (1) or more rooms, apartments, portions or parcels of any real or personal property, or
(2) To transport any person or personal property, or
(3) To perform any service;
(c) In connection with any business, the repeated or continuous:
(1) Sale or renting of one (1) or more articles or parcels of real or personal property, or (2) The transporting of any person or property, or
(3) The performance of any service;
(d) The repeated parking, servicing, replenishing or maintaining of any delivery vehicle, catering truck, junk collection vehicle, pushcart or wagon within the city, whether or not on the premises of another, when done in connection with the permanent painting or inscribing or affixing of said address on the surface of said pushcart, vehicle or wagon;
(e) The performance, in connection with any business, of any single act, with intent to repeat or continue the performance of such act.

Variable flat rate or variable flat rate tax shall mean a fixed scale of amounts whose sum is variable depending on the number or other factor furnishing the basis for determination of the license tax. The term variable flat rate or variable flat rate tax as used in this Chapter includes any tax bas ed on the number of persons engaged or employed in a business.

Vehicle means every device in, upon or by which any person or property is or may be transported or drawn upon a public street or highway, except devices moved by human power or used exclusively upon stationary rails or tracks.

Vending operations means any business conducted or carried on by any person engaged in the business of operating coin-operated machines or devices on the premises of another or in the business of owning, renting, leasing, lending, or otherwise distributing or supplying coin-operated machines or devices while retaining title thereto. Such machines include, but are not limited to, vending, amusement, service and telephone machines.

Wholesaler shall mean any person engaging in the business of selling goods, wares, merchandise or other products for the purpose of resale and not to consumers or users thereof.

Utility and public utility mean any person furnishing the public with communication, water, light, heat or power, subject to regulation by the Public Utilities Commission o f the State of California. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2000, § 1, 3-6-89; Ord. No. NS-2064, § 1, 6-18-90; Ord. No. NS-2841, §§ 3, 4, 2-4-13)
ARTICLE II. IN GENERAL
Sec. 21-4. Purpose.

The purpose of this Chapter is to provide a revenue for the general operation of the city by the levy of a license tax on all business transactions or activities carried on or occurring within the city and is not intended for regulation.

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(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-5. License required.

There are imposed upon the businesses, trades, professions, callings and occupations specified in this Chapter license taxes in the amounts hereinafter prescribed. It shall be unlawful for any person, whether as principal or agent, clerk or employee, either for himself or for any other person, or for body corporate, or as an officer of any corporation to transact and carry on any business, trade, profession, calling or occupation in the city without first having procured a license from the city to do so or without complying with all applicable provisions of this Code.

This section shall not be construed to require any person to obtain a license prior to doing business within the city if such requirement conflicts with applicable statutes of the United State s or of the state.

Persons not required to obtain a license prior to doing business within the city because of conflict with applicable statutes of the United States or of the state shall be liable for payment of the tax imposed by this Chapter but shall not be subject to any penal provisions of this Code for such nonpayment. Said tax shall be collected in a civil action.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-6. Violation defined.

The engaging in, transacting and carrying on of any business without first having procured a license from the city to do so, or without complying with any and all provisions of this Chapter, constitutes a distinct and separate violation of this Chapter for each and every day that such business is so carried on. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-7. Branch establishments; multiple places of business; more than one type of business.

A separate business license fee must be paid and a separate business license obtained for each branch establishment or separate property location of the business transacted and carried on, and for each separate type of business at the same location, and each license shall authorize the licensee to transact and carry on only the business licensed thereby at the location and in the manner designated in such license. Provided, however, that warehouse or distribution facilities located upon the same premises or upon contiguous premises and used in connection with or incidental to a business licensed thereat under the provisions of this Chapter shall not be deemed to be separate types of business or separate branch establishments. Further provided that no separat e business transactions or administrative or management related activities shall be carried on in such incidental or supplemental warehouses or distribution facilities.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2000, § 2, 3-6-89) Sec. 21-8. Two or more allied businesses.
(a) Whenever any person is engaged in two (2) or more correlated businesses, or is carrying on two (2) or mo re allied activities at the same location and under the same ownership and management and the said businesses are on a gross receipts basis, then in that event the gross receipts shall be reported together, and the appropriate applicable rate or rates prescribed will be used for the compilation of the combined annual City of Santa Ana
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license fee, to which amount the basic tax rate amount and business license processing charge shall be applied once only, and for which amount a single combined license shall be issued.

Provided, however, that nothing contained in this section shall be construed to relieve the payment of two (2) or more business license taxes, when required, where two (2) or more separate businesses are conducted in the same location by the same owner and management and such businesses are not construed by the collector to be correlated or allied with each other. An appropriate business license tax as set forth in this Chapter shall be paid for each business.
(b) Whenever any person is engaged in any activity pursuant to a state contractor's license and at the same time is engaged in one (1) or more other correlated businesses, or is carrying on one (1) or more allied activities at the same location and under the same ownership and management, which business or businesses are on a gross receipts basis, then in that event such person may elect to report all the gross receipts together, including all the gross receipts attributable to any services rendered as a state -licensed contractor, which shall be at the rate of a service business, and the applicable rate or rates prescribed will be used for the compilation of the combined annual license fee, to which amount the basic tax rate amount and business license processing charge shall be applied once only, and for which amount a single combined license shall be issued.

Provided, however, that nothing contained in this section shall be construed to relieve the payment of two (2) or more business license taxes, when required, where two (2) or more separate businesses ar e conducted in the same location by the same owner and management and such businesses are not construed by the collector to be correlated or allied with each other. An appropriate business license tax as set forth in this Chapter shall be paid for each business.
(c) Whenever any person is engaged in transacting and carrying on any business at any fixed place of business within the city, and for whom flat rates or variable flat rates are made the basis for fixing the amount of such license, and who at the same time, and at that same location, and under the same ownership and management, is engaged in the commercial rental of any portion of said premises as owner -lessor or leaseholder-lessor, then in that event such person may elect to report all the gross re ceipts attributable to the rental of commercial real estate thereat, which gross receipts shall be subject to a separate license fee at the rate established for the rental of commercial real estate, but to which amount the basic tax rate amount and business license processing charge shall be excluded. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 2, 6-18-90) Sec. 21-9. Combined businesses.

Whenever any person is engaged in a combined business conducted at the same location and by the same owner and management carrying on manufacturing and selling at wholesale and also at retail, or selling at wholesale and also at retail but not manufacturing, and where such combined business is not otherwise specifically licensed on the flat rate basis, then in that event a single combined statement separately showing the amount of manufacturing and wholesale and retail business engaged in respectively shall be filed and the combined tax shall be separately calculated according to the respective rates appropriate for each category of business activity, to which amount the minimum tax fee and business license processing charge shall be applied once only, and for which amount a single combined license shall be issued.

In the event that such a combined statement is not filed, or in the event sufficient records have not been kept which will enable the manufacturing and wholesale portion and the retail portion of such business to be ascertained, then in that event all business done by any such person, whether manufacturing and wholesale or whether retail, shall for the purposes of this section be considered as retail business and the rate presc ribed for retail business shall be applied to calculate the amount of business tax due, to which amount the minimum tax fee City of Santa Ana
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and business license processing charge shall be applied once only, and for which amount a single combined license shall be issued.

Provided, however, that nothing contained in this section shall be construed to relieve the payment of two (2) or more business license taxes, when required, where two (2) or more separate business activities are conducted in the same location by the same owner under the same management and such business activities are not construed by the collector to constitute a combined business. An appropriate business license tax as set forth in this Chapter shall be paid for each business.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-10. Single location; multiple businesses; separate owners.

Nothing contained in this Chapter shall be construed to relieve the obligation to obtain a separate license and to pay the appropriate license tax required for each business owned or conducted by a separate owner within an individual establishment or location whether under the same management or not. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-11. Concessions; separate license required.

Any person who operates any business, whether upon a cost, rental or commission basis as a concession or upon rented floor space in or upon the premises of any person licensed under the provisions of this Chapter, shall be required to obtain a separate and independent license pursuant to this Chapter exce pt as may be otherwise specified hereinafter.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-12. Association with local business or governmental agency; disclosure of associated businesses and independent contractors.

Any person who shall associate with any local business or governmental agency, whether or not on a temporary basis, shall not be relieved from the provisions of this Chapter and shall be required to pay the appropriate business license tax as specified in this Chapter. Nothing in this Chapter shall be deemed or construed to relieve any such person from the provisions of this Chapter by virtue of any exemption provided to any local business pursuant to this Chapter or any exemption or exclusion applicable to any agency, instrumentality, or political subdivision of the state or of the United States, or any exemption or exclusion otherwise arising out of the constitution or applicable statutes of the United States or the state. (a) Definitions. As used in this section, the following phrases shall have the meaning hereinafter set forth:
(1) The phrase "local business" as used in this section shall be defined as including all persons transacting and carrying on business from any fixed place of business within the city other than as an employee. In addition, the phrase "local business" shall include all leaseholder -lessors and owner-lessors of commercial or residential real estate within the city. (2) The phrase "governmental agency" as used in this section shall be defined as including every agency, instrumentality, or political subdivision of the state or of the United States. (3) The phrase "associate with" as used in this section shall be defined to mean the transacting and carrying on, by any other person, of business on the premises owned, controlled, or managed by said local business or governmental agency, whether as a tenant of, in connection with, or as an City of Santa Ana
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affiliate of, or as an adjunct to, or in the name of said local business or governmental agency, or whether as a building management agent, or property management agent, or independent general operating agent or manager for said local business or governmental agency, or whether as an outside business or an independent contractor performing services for said local business or governmental agency.
(b) Application. In the case of a local business which is a partnership or joint venture, the phrase "associate with" shall not include the business transacted and carried on by a general partner in connection with the general partnership or by a joint venturer in connection with the joint venture. In the case of a local business which is a corporation, the phrase "associate with" shall include any business transacted and carried on by a subordinate or subsidiary corporation or holding company, pass -through entity or trust.

For all local businesses, the phrase "associate with" shall include the maintaining on the premises of the local business of any principle executive or other business office as required in connection with the registration of any business entity address with the California Secretary of State for any actively registered corporation, limited liability company, limited partnership, or limited liability partnership under the California Corporations Code as the same now exists or as may be hereafter amended from time-to-time.

In the case of a local business which is a leaseholder-lessor or owner-lessor of commercial or residential real estate within the city, the phrase "associate with" shall include any business transacted and carried on by an independent resident property manager, independent building manager, independent property agent or independent building agent, whether or not such independent manager or agent is also a tenant of said property. Such independent manager or agent shall be required to obtain a separate business license. In the case of a local business which is a t enant of a commercial premises and a party to a lease-back agreement or other similar agreement involving said commercial real estate in which the ownership identities of both parties to the agreement are identical, but the legal entities are distinct, the phrase "associate with" shall include any such business transacted by the owner-lessor or leaseholder-lessor of said commercial real estate. Such owner-lessor or leaseholder-lessor shall be required to obtain a separate business license and shall be subje ct to all the requirements of this Chapter.
(c) Disclosure.
(1) Every local business, and any person acting as their agent, shall upon request by the collector, provide the names and addresses of all persons who lease, rent or maintain space, mailboxes, coin-operated machines or devices, or in any other manner transact and carry- on business, or occupy or maintain a business presence on the premises owned, controlled, or managed by said local business. In addition, every local business, and any person acting as their agent, shall upon request by the collector, provide the names and addresses of all persons, whether or not located within the city, who are contracted to perform, or who regularly do perform services on the premises owned, controlled, or managed by said local business. (2) Every person engaged in the rental of residential real estate within the city, every condominium or homeowner association within the city, and all property management services acting as their agents, shall upon request by the collector, provide the names and addresses of all persons who have been granted permission to engage in business activity on the premises owned, controlled, or managed by them. In addition thereto, all condominium or homeowner associations within the city and all property management services acting as their agents, shall upon request by the collector, provide the names, property addresses, and mailing addresses of all owners engaged in the rental of any residential real estate, under their control or manag ement. (3) Every person engaged in the rental of commercial real estate within the city, and all property management services acting as their agents, shall, at the time the license required by this Chapter is applied for and thereafter annually at the time of the renewal of their license for the City of Santa Ana
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rental of commercial real estate, or at such other time as the collector in his or discretion may set, provide to the collector a list of (i) the names and addresses of all tenants (including subtenants) occupying the commercial real estate property licensed; and (ii) the names and addresses of all persons, whether or not located within the city, who are contracted to perform, or who regularly do perform services on the licensed premises owned, controlled, or managed by said commercial real estate rental licensee or commercial real estate management agent. (d) Disclosure requirements—Authority to vary. To effectively implement the intent of the disclosure provisions of this section, the collector may vary the strict requirements of subsection (c) above to accommodate the regular record keeping and business practices of persons subject to the disclosure requirement and also to facilitate ease of administration by the collector. (e) Confidentiality. All information received by the collector pursuant to this section shall remain confidential and shall be used solely for the purposes of administering the city's business license tax and shall not be maintained by the city as part of the public record. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13) Sec. 21-13. Partnerships.

In the event that any business conducted, managed or carried on in the city is organized as a partnership or joint venture, the scheduled license fee need be paid only by the partnership or joint venture and not by any such individual partner or joint venturer.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-14. Corporations; in general.

In the event that any business conducted, managed or carried on in the city is organized as a general law corporation, pursuant to the California General Corporation Law, the scheduled license fee need be paid only by the corporation and not by any such individual shareholder thereof. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-15. Professional corporations.

In the event that any business conducted, managed or carried on in the city is organized as a professional corporation, the scheduled license fee need be paid only by the corporation and not by any such individual shareholder thereof
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-16. Evidence of doing business.
(a) When any person shall by use of signs, circulars, cards, business letterhead, telephone books, newspapers, billboards, trade publications, electronic telephone or business directories, internet advertisement, or websites, advertise, holdout, or represent that such person is in business in the city; or when any person has registered and published a fictitious name statement registered to an address in the city, or holds or has been issued an active state board of equalization permit, or holds any other activ e licenses, permits, certificates or registrations issued by a governmental agency (including but not limited to: federal or state employer identification numbers, or registration with the California Secretary of State as a corporation, City of Santa Ana
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limited partnership, limited liability partnership, or limited liability company) indicating that such person is in business within the city, or maintains a post office box under a business name registered to any address within the city, or when any person files federal income tax or state franchise tax statements reporting business income within the city or claiming business office deductions or business expense deductions for a commercially located or home-based business in the city, or gives other evidence of transacting and carrying on business as may be defined elsewhere under the terms of this Chapter and such person fails to deny in a sworn statement given to the collector that such person is "engaged in business" within the city, or fails to assert and document that such person is "exempted" or otherwise "excluded" from the requirement to pay a business license tax, after being requested to do so by the collector, then these facts shall be considered prima facie evidence that such person is conducting a business in the city. (b) When any municipal utility records indicate that the occupant of any commercial real estate within the city is a person other than the person indicated by county assessor or county recorder records to be the owner of such property, or when any utility records indicate that the occupant of any residential real estate within the city is a person other than the person indicated by county assessor or county recorder records to be the owner of such property, or when the county assessor or county recorder records indicate that any person owning residential real estate within the city does not claim a homeowner's exemption for said property and receives their property tax notification for said property at another residence location, and such person fails to deny in a sworn statement given to the collector that such person is engaged in the "rental of residential real estate" within the city, or fails to assert and document that such person is "exempted" or otherwise "excluded" from the requirement to pay a business license tax, after being requested to do so by the collector, then these facts shall be considered prima facie evidence that such person is conducting a business in the city.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13) Sec. 21-17. Effect of chapter on other ordinances.

Persons required to pay a license tax for transacting or carrying on any business under this Chapter shall not be relieved from the payment of any tax for the privilege of doing such business required under any other provisions of this Code and shall remain subject to all regulatory provisions. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-18. No required permits waived.

The business license issued pursuant to the provisions of this Chapter constitutes a receipt for the license fee paid and shall have no other legal effect. A business license is a requirement, not a permit, to transact and carry on any business activity within the city. The business license tax receipt is evidence only of the fact that such tax has been paid. Neither the payment of the tax nor the possession of the business tax receipt authorizes, permits or allows the doing of any act which the person paying or holding the same would not otherwise be entitled to do; and any permit, license, variance or other instrument of approval or evidence that any conditions exist as required by any other Section of this Code or by any statute or code provisions of the state must first be obtained or complied with before the doing of any act or thing for which it is required. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-19. Severability.

If any article, Section, subsection, sentence, clause, or phrase of this Chapter is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not effect the City of Santa Ana
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validity of the remaining portions of the chapter. The city council hereby declares that it would have passed this Chapter and each article, Section, subsection, sentence, clause and phrase hereof, irrespective of the fact that any one or more of the articles, Sections, subsections, sentences, clauses or phrases hereof be declared i nvalid or unconstitutional.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-20. Decisions on amounts imposed.

If any license tax imposed by this Chapter is for any reason held to be discriminatory or invalid in amount, by the decision of any court of competent jurisdiction, such decision shall not affect the validity of a lesser amount imposed by the collector. The city council hereby declares that it would have imposed a license tax of some amount on the business, occupation, calling, trade, vocation or other enterprise in question, irrespective of the fact that any one or more of the license taxes imposed herein may be declared discriminatory or invalid in amount. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-21. Saving clause.

Neither the adoption of this Chapter nor its superseding of any portion of any other chapter shall in any manner be construed to affect prosecution for violation of any chapter or ordinance prior to the effective date hereof, nor be construed as a waiver of any license or any penal provision applicable to any such violation, nor be construed to affect the validity of any bond or cash deposit required by any ordinance to be posed, filed or deposited, and all rights and obligations thereunto appertaining shal l continue in full force and effect. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-22. Unexpired licenses heretofore issued.

Where a license for revenue purposes has been issued to any business by the city and the tax paid therefor under the provisions of any business license tax ordinance heretofore enacted and the term of such license has not expired, then the license tax prescribed for such business by this Chapter shall not be payable until the expiration of the term of such unexpired license.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-23. Unpaid taxes; tax plus penalties.

No business license for any succeeding, current or unexpired tax period shall knowingly be issued to any person, who at the time of application, is indebted to the city for any unpaid tax. The total indebtedness shall include the total tax due plus penalties for failure to pay the tax when due. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-24. License tax a debt; civil action.

The amount of any business license tax and penalty imposed by the provisions of this Chapter shall be deemed a debt to the city. An action may be commenced in the name of the city in any c ourt of competent jurisdiction for the amount of any delinquent license tax, penalties, and administrative costs incurred in connection therewith, including attorneys fees.

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(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-25. Original delinquency penalty; conducting a business without first having procured a license; effect—Voluntary compliance; effect—Abatement of penalty; application—Violation; misdemeanor.
(a) Any person who shall commence, engage, transact and carry on any trade, calling, profession, occupation or business within the city without first having procured the required business license from the city to do so, shall be assessed a penalty of fifty (50) per cent of the amount of the license tax owing, which amount s hall be separately calculated for each successive license period beginning with the calendar month in which the commencement of business activity within the city began, and ending with the expiration of the current annual licensing period. Provided, however, that the start of such period shall not exceed three (3) years prior to the date of notification of violation. Such penalty to be collected, and the amount thereof to be enforced, in the same manner as all other business license taxes are collected and the payment thereof enforced.
(b) Where any person is in arrears for business license taxes under subsection (a) above, owed for the rental of residential or commercial real estate within the city, or owed for a business which is conducted solely from a home residence within the city, the penalties imposed under subsection (a) shall be abated in accordance with subsection (f) below if the tax is paid by the last day of the calendar month following the month in which such person was given notice of the requirement to obtain a city business license; otherwise penalties shall accrue as in the case of any other business.
(c) Where any person occupying a commercial premises as a tenant or subtenant is in arrears for business license taxes under subsection (a) above, and has been reported to the collector pursuant to Section 21 -12, the penalties imposed under subsection (a) shall be abated in accordance with subsection (f) below if the tax is paid by the last day of the calendar month following the month in which such person was given notice of the requirement to obtain a city business license; otherwise penalties shall accrue as in the case of any other business.
(d) Where any person, whether or not located within the city, is contracted to perform, or regularly does perform services on the premises owned, controlled, or managed by a local business as defined in Section 21-12 and is in arrears for business license taxes under subsection (a) above, and has been reported to the collector pursuant to Section 21-12, the penalties imposed under subsection (a) shall be abated in accordance with subsection (f) below if the tax is paid by the last day of the calendar month following the month in which such person was given notice of the requirement to obtain a city busine ss license; otherwise penalties shall accrue as in the case of any other business. (e) Where any person is otherwise in arrears for business license taxes under subsection (a) above, the penalties imposed under subsection (a) shall be abated in accordance with subsection (f) below if such person voluntarily applies for the required business license and pays the business license tax owing in arrears; otherwise penalties shall accrue as in the case of any other business. (f) In all cases where the provisions of this section provide for the abatement of penalties imposed under subsection (a), the amount owing in arrears and the amount of the accrued penalties shall be abated until the combined amount of tax and penalty due is equalized to an amount equivalent to the amount of current and prior years' taxes owing as computed or determined based upon the business license tax rates in effect for the most current tax year.
(g) In determining the amount of penalty due for any person for whom an initial license per iod gross receipts in lieu deposit is required in accordance with Sections 21-117, 21-118 or 21-118.1 the collector shall compute City of Santa Ana
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and apply the penalty due at the time that such person's initial period gross receipts report is filed and computed in accordance with Section 21-117(c).
(h) However, no abatement of penalties or interest shall be permitted under this section in any case where such person concurrently holds or has previously held a city business license or previously been given notice of said requirement with regard to any business activity engaged in or conducted within the city. (i) When any person is determined to be liable for delinquent business license taxes and such person fails to properly procure the correct business license after being given notice to do so, the collector shall determine the amount of delinquent business license taxes owed in accordance with Section 21 -41. Penalties thereon shall be accrued as applicable in accordance with this section. In determining the amount of tax due for any business for whom the gross receipts of such business is made the basis for fixing the amount of such business license the collector may base such determination upon an average of the reported gross receipts of like businesses, similarly classified.
(j) Any person required to obtain a city business license under the terms of this Chapter having been given notice of the requirement to obtain a city business license under the terms of this section, whether by personal service, or by a notice conspicuously posted upon the premises of such person's business, or by notice given through the United States mail, who has not paid said business license tax or otherwise obtained a valid business license, or applied for exemption therefrom and who has not applied for, or who is not undergoing the process of a hearing or appeal pursuant to Section 21 -41 or Chapter 3 of this Code shall be deemed guilty of a misdemeanor violation. For the misdemeanor violation provision of this section to apply, notice, when given by United States mail shall be mailed to the responsible person by certified mail, postage prepaid with a requested return receipt. Simultaneously, the notice may be sent by first class mail. If the notice is sent by certified mail and the return receipt is returned unsigned or refused, then service of notice shall be deemed effective pursuant to first class mail, provided the notice sent by first class mail is not returned.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13) Sec. 21-26. Penalty for violation.
(a) Any person violating any of the provisions of this Chapter shall be deemed guilty of a criminal infraction except where said violation is specifically deemed a misdemeanor. (b) Every violation of the provisions of this Chapter determined to be a criminal infraction shall upon conviction thereof be punishable by (1) a fine of one hundred dollars ($100.00) for a first violation; (2) a fine of two hundred dollars ($200.00) for a second violation of the same provision within one year; (3) a fine of two hundred fifty dollars ($250.00) for each additional violation of the same provision within one year. Each day any such violation of any said provision of this Chapter shall continue shall constitute a separate offense. (c) Every violation of the provisions of this Chapter deemed to be a misdemeanor, upon conviction thereof shall be punishable as provided for in Section 1-8 of this Code. Each day any violation of any said provision of this Chapter shall continue shall constitute a separate offense. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-27. Misrepresentation—Penalty.

Any person knowingly or intentionally misrepresenting to any officer or employee of the city any material fact in applying for or paying for the business license herein provided for shall be deemed guilty of a misdemeanor violation of this Chapter.

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(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-28. Remedies cumulative.

The conviction and fine or imprisonment of any person for engaging in any business without first obtaining a license to conduct such business shall not relieve such person from paying the business tax to conduct such business, nor shall the payment of any business tax prevent a civil action or criminal prosecution for the violation of any of the provisions of this Chapter. All remedies prescribed hereunder shall be cumulative and 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 hereof.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-29. Cancellation; right of licensee to request.

The collector shall cancel a valid unexpired license issued or granted to the licensee pursuant to this Chapter at the request of the licensee provided:
(a) The licensee so endorses, signs and surrenders the business license receipt along with any applica ble decal, metalcal, sticker or tag, and
(b) All business activity pursuant to licensee's license has ceased.

Liability for any further business taxes shall cease only if the licensee's account is vacated pursuant to this section.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-30. Requirement to obtain and furnish sales tax number; requirement to report gross sales to the state; requirement to collect sales and use tax; requirement to pay collected sales and use tax; requirement to report same separately to the city.

Any person who contracts, sells or delivers any goods, wares or merchandise in the city for which sales or use tax is payable and who is required to report and pay such sales and use tax to the state shall obtain an appropriate California State Board of Equalization permit and furnish the collector with his sales tax number and shall report separately in his return to the state the amount of receipts from sales in the city and/or the receipts from sales for use in the city and shall pay the required sales or use tax on such receipts. Any such person who fails to do so shall be deemed guilty of a misdemeanor violation of this Chapter. (Ord. No. NS-1922, § 1, 7-20-87)
ARTICLE III. COLLECTOR
Sec. 21-31. Collector; establishment of position.

There is hereby established the position of collector which shall include any position heretofore referred to in this Chapter or any other chapter of this code as "license collector," "business tax collector," "business fee collector," or any other term used to describe the office of the collector of business license taxes. Provided further that to the extent that any other provision of this Code or any other city ordinance refers to the director of finance City of Santa Ana
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as the collector of business license taxes, such provisions shal l be construed to require the execution of such duties by the collector.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-32. Collector; ex officio collector of business license taxes.

The collector shall be ex officio business license tax collector. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-33. Collector; duty to enforce.

It shall be the duty of the collector to enforce each and all of the provisions of this Chapter, and the chief of police, the chief building official, the chief fire official, and the city attorney shall render such assistance in the enforcement hereof as may from time to time be required by the collector. Each department or division of the city which issues permits or entitlements of use shall require the production of a valid unexpired business license receipt or business license exemption receipt prior to the issuance of such a permit. Provided, however, that nothing in this section shall be construed to require any person to obtain a license to do business within the city as a prerequisite for the issuance of a city permit or entitlement of use if such requirement conflicts with any applicable statutes of the United States or of the state. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-34. Collector; duty to certify general contractor's statement.

Every person acting as a general contractor, whether building for their own occupancy or not, shall file with the collector a full, true and complete written statement, signed by such person, under penalty of perjury, listing all subcontractors who have performed or shall perform any service whatsoever for such person within the city for which a license is required under the provisions of this Chapter. Any builder-owner, general engineering contractor, specialty contractor, or subcontractor, subcontracting any work shall be deemed a general contractor for the purpose of this section. Said statement shall include the name, address, telephone number, state license number and specialty classification of each person required to be licensed.

It shall be the duty of the collector or his or her designated representative to ascertain and certify that all business tax liability of the general contractor and all subcontractors employed by the general contractor has been duly satisfied.

Pursuant to Section 8-2 of this Code, no certificate of occupancy shall be issued, or final inspection provided until the collector or his designated agent certifies that there has been complete compliance with the requirements of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-35. Collector; duty to keep records.

The collector shall keep full, adequate and accurate records pertaining to the issuance of licenses under this Chapter and the collection of all fees, penalties and other moneys in connection herewith. The colle ctor shall keep in his or her office a public ledger in which he or she shall keep the accounts of all licenses currently issued by him or her and remaining in full force and effect.
(Ord. No. NS-1922, § 1, 7-20-87)
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Sec. 21-36. Collector; administration of oaths.

For the purposes of this Chapter, the collector, as chief revenue officer, and each and every duly authorized revenue officer or authorized agent, is authorized to administer oaths. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-37. Collector; deposit of fees, charges and penalties.

All fees, penalties, charges and other moneys received by the collector pursuant to the provisions of thi s Chapter shall be deposited in the general fund of the city upon the business day next following the receipt of the same.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-38. Collector; printing of blank licenses, applications, reporting forms, notices and other form correspondence.

The collector shall prepare printed blank licenses for all business conducted in the city for the term of twelve (12) months, and for shorter terms authorized by this Chapter to be issued. The collector shall also prepare all necessary printed applications, reporting forms and notices and other form correspondence. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-39. Collector; duty to determine business type or class.

The determination of which business or type or class of business a licens ee or applicant is engaged in or about to engage in shall be an administrative function of the collector. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-40. Collector; classification of businesses into categories.

The collector is authorized to establish a list of specific businesses that are included within each of the categories set forth in general terms by this Chapter. This list shall be reviewed and updated periodically so as to be all-inclusive as possible. The list shall be kept on file in the offices of the collector and the clerk of the council and shall be available for use by the general public. The classification of any business into a general category shall be at the determination of the collector. Any person aggrieved by the decision of the collector shall have the right to a hearing pursuant to Section 21-41 and/or the right to an appeal to the city council for a final decision pursuant to Chapter 3 of this Code.
(Ord. No. NS-1922, § 1, 7-20-87)
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Sec. 21-41. Collector; assessment of tax, penalties, interest, charges (including service fees), determination of classification; notification of violation; right to hearing; hearing service fee deposit.
(a) The collector shall determine the amount of license tax due, together with any penalties, interest, charges (including service fees) that may be due and payable and/or the proper classification for a business by means of such information as he or she may be able to obtain in the event:
(1) Any person fails to properly procure the correct business license prior to doing business in the city; or (2) Any person engaged in transacting and carrying on business within the city fails to renew any business license; or
(3) Any person fails to file any required statement within the time prescribed; or (4) If, after demand therefor has been made by the collector, any person fails to file a corrected statement within fifteen (15) days after notification to do so; or (5) It appears to the satisfaction of the collector that a statement filed does not set forth the facts of the business for which a license is required; or
(6) If a licensee or an applicant for a license believes that the business is not assigned to the proper classification because of circumstances peculiar to it. (b) In the case where such determination is made, the 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 causing it to be served personally by a duly authorized agent; or (2) By depositing it in the United States Mail, postage prepaid addressed to the person so assessed at their address of record.
(c) Any person receiving a determination made by the collector pursuant to this section regarding the amount of tax owed, or classification found to be appropriate, may, within fifteen (15) days after the serving or mailing of such notice, make application in writing to the collector for an administrative hearing, hereinafter ("hearing") by completing and filing a "request for hearing" form with the collector. Request for hearing forms shall be made available in the office of the director of finance and clerk of the city council. A failure to file a timely "request for hearing" form shall be deemed a waiver of the right of appeal. Provided, further that any person seeking a hearing under this section shall first deposit with the collector a hearing service fee to be specified by resolution of the city council to cover the city's cost in providing an administrative hearing officer, hereinafter ("hearing officer").
(d) All hearings conducted pursuant to this section shall be heard by the same hearing officer who has been appointed by the Santa Ana city manager pursuant to Section 1-28.8 of this Code. (e) Hearing procedures for hearings conducted pursuant to this section shall be as follows:
(1) No hearing to contest a determination of the collector before a hearing officer shall be held unless and until a timely "request for hearing" form has been completed and filed with the collector, and (2) After receipt of the "request for hearing" form and deposit of the hearing service fee, a hearing before the hearing officer shall be set for a date that is not less than fifteen (15) and not more than sixty (60) days from the date that the "request for hearing" is filed in accordance with the provisions of this section. The person requesting the hearing shall be notified at least ten (10) days prior to the date of the hearing. The failure of any person to appear at the hearing shall constitute a forfei ture of the City of Santa Ana
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administrative hearing service fee deposit and shall be a bar to judicial review of the hearing officer decision based upon failure to exhaust administrative remedies. (3) At such hearing the person may appear and offer evidence why the collector's specified tax amount should not be fixed as the license tax amount or why such classification prescribed by the collector as the applicable tax classification should not be fixed. Formal rules of evidence shall not apply. (4) Upon request, the person requesting the hearing shall be provided with reports and other documents relied upon by the collector in making his or her determination. In addition, if the collector, duly authorized revenue officer, or other individual appearing at the hearing as the agent of the collector submits any additional written reports to the hearing officer for consideration at the hearing, then a copy of said documentation shall also be served by mail on the person requesting the hearing. (5) The hearing officer may continue the hearing and request additional information from the collector prior to issuing a written decision.
(6) After such hearing, the hearing officer shall determine the proper tax to be charged or classification prescribed and shall forthwith give written notice to the person requesting the hearing in the manner prescribed herein of such determination and the amount of such tax. (f) Hearing officer's decision. After considering all of the testimony and evidence submitted at the hearing, the hearing officer may immediately issue a verbal decision or may issue a written decision within fifteen (15) days of the hearing. The decision shall include the reasons for the decision and such decision shall be final. (g) If the hearing officer fixes the amount of the tax, penalty, interest, charges, service fees or the tax classification in accordance with the original written determination of the collector, then the amount as finally determined shall be immediately due and payable and/or the classification shall be immediately applicable, and the hearing service fee shall be forfeit. If the hearing officer determines the amount of the tax, penalty, interest, charges, service fees or the tax classification to be applicable in accordance with the original statement of the person requesting the hearing then the amount due and payable and/or the classification applicable shall be as set forth in such person's original statement and the collector shall refund the hearing service fee deposit. If the hearing officer fixes the amount of the tax, penalty, interest, charges, service fees and/or the tax classification to be applied in some other manner the hearing officer shall also make a written determination as to fixing the amount of tax, penalty, interest, charges, service fees and/or the tax classification applicable and shall indicate the disposition of the hearing service fee deposit. (h) Any person who is aggrieved by the decision of the hearing officer may obtain judicial review of such decision in the manner provided under Section 1-21.9 of this Code. (i) In the event no application for a hearing is filed within the time prescribed, the decision of the collector shall become final and conclusive on expiration of the time herein fixed for hearing and shall render any subsequent appeal null and void and shall further act as a waiver against future action. (j) Notwithstanding any other provision contained in this Chapter or any other provision contained in this code to the contrary, any person voluntarily tendering payment of any license tax, interest, or penalties to the city pursuant to any provision of this Chapter shall for all purposes thereafter be precluded and barred from appealing, contesting or otherwise challenging the validity or amount of any such tax, interes t or penalties pursuant to any otherwise available procedure set forth in this Chapter, or otherwise available by law, unless said payment is made under written protest to the city. Said written protest shall be deemed made for the purposes of this Chapter only by one (1) of the following methods: (1) a written notation set forth on the check, draft, money order, or other negotiable instrument by which payment is tendered, indicating that such payment is made under protest; or (2) a written notice addressed and delivered to the collector at the time of payment indicating that such payment is made under protest. Provided, however, that this subsection shall not bar a request for refunds authorized pursuant to Section 21 -87 of this Chapter. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13) City of Santa Ana
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Sec. 21-42. Collector; necessary rules and regulations.

In addition to all other powers conferred upon him or her the collector shall have the power to make rules and regulations not inconsistent with the provisions of this Chapter as may be necessary or desirable to aid in the enforcement of the provisions of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-43. Collector; extension of time for filing—Compromise of claims; waiver of claims. (a) The collector shall have the power to extend the time for filing any required application, affidavit, statement or report and remitting of any taxes or other monies owing for a period of up to six (6) months. In connection with that authority the collector shall also have the power to extend the time for giving notification of tax renewal and to extend the time that any previously issued license shall remain valid. The collector may in his or her discretion exercise this authority on a case-by-case basis in connection with any individual applicant or licensee, or other individual person subject to the requirements of this Chapter. The collector may also exercise this authority on a class-by-class basis in connection with any category, class or subclass of assessment or any category, class or subclass of applicants, licensees, or other persons subject to the requirements of this Chapter, or any persons subject to any applicable business license tax surcharge or surtax or other business license related assessment or fee required or authorized under the general laws of the state.
(b) The collector shall have the further power, for good cause shown, to compromise any claim, or class of claims, as to the amount demanded or owing.
(c) The collector, shall have the further authority to settle, discontinue, or waive the collection of any claim, or class of claims, for good cause shown, or if it appears that further proceedings would be without merit, or if the administrative or legal cost therefor would be excessive, or if the amount of the claim in question is de minimus. A claim, or class of claims, shall be deemed to be de minimus whenever the total amount of the claim is determined by the collector to be equal to or less than the total anticipated administrative c osts associated with collecting said amount. The collector may in his or her discretion determine this amount on a case-by-case basis or on a class-by-class basis. In accordance with Section 21-42 the collector may adopt administrative rules, regulations, and guidelines, relating to the settlement, discontinuance, or waiver of claims arising pursuant to this Chapter.
(d) In connection with the exercise of the power and authority hereinabove provided to the collector, he or she in their discretion, shall have the right to allow the payment of any taxes or other monies owed to the city by installment without penalty, interest or other administrative charge on a case -by-case basis or class-by-class basis. In accordance with Section 21-42 the collector may adopt administrative rules, regulations, and guidelines, relating to the acceptance of installment payments. (e) Moreover, to effectively implement the intent of the general provisions of this Chapter the collector in his or her discretion may vary the strict procedural, enforcement, deposit, or other administrative requirements of this Chapter on a case-by-case or class-by-class basis in any manner. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13) Sec. 21-44. Collector; additional power.

In addition to all other powers conferred upon him or her, the collector shall have the power, for good cause shown, to waive or reduce any penalty or late interest imposed, or deposit, or charge, or service fee demanded.

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(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13) Sec. 21-45. Collector; authority to suspend and revoke licenses.

The collector shall have the authority and duty to suspend or revoke any license granted or issued under the provisions of this Chapter at any time for any of the following:
(a) A material false statement contained in the application for a new license or in the application for a renewal license granted or issued under the provisions of this Chapter, or in any affidavit or statement required to be filed under the provisions of this Chapter, or (b) Upon the determination that the licensee has not paid the tax required to be paid as a condition for the issuance of the license, pursuant to the procedures set forth in Section 21 -86.

Any person transacting and carrying on any business during any period of license suspension shall be deemed to be doing so under an invalid license. Any person transacting and carrying on business during any period of license revocation shall be deemed to be doing so without a license. Provided further, that any person transacting and carrying on business during any period of license revocation or suspension shall be refused any permits or entitlements of use the issuance of which requires the production of a valid unexpired business license. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-46. Collector; authority to issue citations.

The collector, as chief revenue officer, and each and every duly authorized revenue officer of the city have the duty to enforce this Chapter and are authorized to arrest persons without a warrant whenever they have reasonable cause to believe that the person to be arrested has committed a violation of said provisions in their presence. In any case in which a person is arrested pursuant to this section and the person arrested does not demand to be taken before a magistrate, said officer making the arrest shall prepare a written notice to appear and release the person on his or her promise to appear as prescribed by Chapter 5C Title III o f Part 2 of the Penal Code of the State of California (commencing with Section 853.6). (Ord. No. NS-1922, § 1, 7-20-87)
ARTICLE IV. EXEMPTIONS
Sec. 21-47. Conflicts with federal or state law.

Nothing in this Chapter shall be deemed or construed to apply to any person transacting or carrying on any business exempt from business license taxes by virtue of the constitution or applicable statutes of the United States or the state.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-48. Business licensing—Specified exemptions.
(a) A business license shall not be required for the conducting of any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects whenever the receipts of any such activity are to be appropriated to any church or school or to any religious or benevolent purpose within the city.

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(b) A business license shall not be required for any person under eighteen (18) years of age, who is a resident of the city, and who is enrolled in an institution of secondary education; provided, however, such person has no employee or employees working for him or her.
(c) A business license shall not be required for any attorney whose only business done in the city is in the courts operated in this city, nor for any doctor whose only business done in the city is surgery and/or consultation in a regularly established hospital in the city; provided, however, that the maintenance of an office, facility, or establishment within the city used in connection with any attorney's appearance in any court within the city, or any doctor's surgery or consultation performed at any hospital within the city shall not be hereby exempted from the city's business licensing requirements. (d) A business license shall not be required for any other licensed person providing professional services not having a fixed place of business within the city and not engaged in other than the occasional furnishing of professional services wholly negotiated and contracted for outside the city. (e) A business license shall not be required for any business done in the city where the business conducted is only occasional and incidental to a regularly established business conducted elsewhere. (f) A business license shall not be required for any commercial traveler whose business is limited to goods, wares, and merchandise sold or dealt in at wholesale in this state, or for any salesman or agents representing vendors which have, do, or would normally supply goods for resale to licensees of the city. (g) A business license shall not be required for any individual whose business is limited to providing in- home childcare to immediate or extended family members. The phrase "immediate or extended family members" shall mean such individual's direct children, children by adoption, children by marriage, grandchildren (direct, by adoption, or by marriage), nieces or nephews (direct, by adoption, or by marriage), and any foster children or other minor under eighteen (18) years of age living as part of the same residential household. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3031 , § 3, 11-8-22) Sec. 21-49. Business licensing—Specified exclusions.

Except as may be otherwise specifically provided in this Chapter, the terms hereof shall not be deemed to apply or construed to require the payment of a license tax by any of the following persons:
(1) B anks, including national banking associations, federal credit unions, and financial corporations, to the extent that a city may not levy a license tax upon them under the provisions of Article XIII, Section 27 of the State Constitution.
(2) Insurance companies or associations engaged in the sale and servicing of insurance and their direct agents, including bailbond agents and life agents, but not including brokers or bailbond brokers or life and disability insurance analysts or insurance solicitors to the extent that a city may not levy a license tax upon them under the provisions of Article XIII, Section 28 of the State Constitution. (3) Any governmental agency or subdivision and the employees thereof, to the extent they are engaged in the business of such governmental agencies or subdivisions. (4) Any state alcoholic beverage licensee engaged in the manufacture, sale, purchase, possession, or transportation of alcoholic beverages within the state to the extent that a city may not levy a license tax upon them under provisions of Article XX, Section 22 of the State Constitution. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13; Ord. No. NS-3031 , § 3, 11-8-22) ARTICLE V. FEE-EXEMPT
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Sec. 21-50. Disabled veterans.

Every person who has been honorably discharged from military service of the United States and who is exempted from the payment of business license taxes by statute of the state may distribute circulars and hawk, peddle, and vend any goods, wares or merchandise owned by him, except spirituous, malt, vinous or other intoxicating liquor, without payment of this license tax; subject however to the restrictions, limitations, regu lations and conditions hereinafter set forth.
(1) Every applicant must furnish a certificate of physical disability executed by a qualified physician or submit equivalent evidence of disability.
(2) Every applicant must submit to being photographed by the city police department. One copy of said photo shall be permanently affixed to the license issued to said applicant and another copy shall be transmitted to the collector for attachment to the portion of the license application retained by him.

The applicant must also sign both the application and the license at the time of the issuance thereof. (3) A license, when issued, is subject to the following conditions:
(i) Said license shall not be defaced, mutilated, disfigured or otherwise altered subsequent to its issuance; and failure to comply herewith is grounds for revocation of said license and for refusing its renewal or the issuance of a new license thereafter. (ii) It is nontransferable and for the exclusive use of the licensee named. (iii) Should a license be found in the possession of one other than the licensee named, it shall be surrendered to the collector and revoked and neither the licensee named nor the holder thereof shall thereafter be entitled to hold a license under the provisions of thi s section. (iv) The licensee named must identify himself by his signature whenever required to do so by any city police officer, or any authorized agent of the collector. (v) Every license issued under the provisions of this section shall expire on the 3 1st day of December of the current year; provided however that a license newly issued on or after November 1st of the current year shall expire on the 31st day of December of the next year. (vi) It shall be unlawful for any person other than the licensee named to use or have in his possession any license issued pursuant to the provisions of this section. (vii) It shall be unlawful for any person to purchase or transfer any license issued pursuant to the provisions of this section or for any person to transfer or convey the certificates mentioned in this section to any other person for the purpose of securing a license as herein provided. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-51. Nonprofit organizations.

The provisions of this Chapter shall not be construed to require the payment of a license fee to conduct any business, occupation or activity or require the payment of any license fee from any institution or organization which currently has or is eligible for an exemption from the payment of federal income taxes under Section 501 of the Federal Internal Revenue Code as amended from time to time and/or exemption from the payment of state income taxes under Section 23701 et seq. of the California Revenue and Taxation Code as amended from time to time. An institution or organization claiming a license fee exemption under this section has the burden of furnishing to the collector such information as the collector may require to support the claim of eligibility f or exemption.

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Nothing in this section shall be construed to relieve an institution or organization which is eligible for or claims to be eligible for exemption from payment of a business license fee from the requirement to obtain a business license as provided in Section 21-52 of this Code. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-52. Same—Business license required; exceptions.

Any person, institution or organization claiming exemption from the payment of a business license fee under Section 21-50 shall, nevertheless, apply to the collector for a business license in the same manner, and at the same time as is required in this Chapter of all other persons applying for a business license and shall be subject to the same procedures for enforcement and to the same penalties as provided herein. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-53. Minimum gross receipts—Gratuitous license charge.

The provisions of this Chapter shall not be deemed or construed to apply to any person doing business in the city on a continuing but part-time basis whose gross receipts therefrom do not exceed the annual qualifying threshold amount per year as set forth in Section 21-120m(a). Any person claiming exemption under this Section shall be required, however, to provide information to the collector or his authorized agent of such nature and in such manner, and at such time as is required in this Chapter of persons applying for a business license and shall be subject to the same procedures for enforcement and for penalties as are provided herein. Provided, further that an annual charge as set forth in Section 21-120m(b) shall be due and payable for the issuance of a gratuitous license receipt.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 5, 6-21-22) Sec. 21-54. Hobby—Gratuitous license charge.

The provisions of this Chapter shall not be deemed or construed to apply to any person engaged in hobby activity in the city. Any person claiming exemption under this Section shall be required, however, to provide information to the collector or his authorized agent of such nature and in such manner, and at such times as is required in this Chapter of persons applying for a business license and shall be subject to the same procedures for enforcement and for penalties as are provided herein. Provided further, that an annual charge as set forth in Section 21-120h(2) shall be due and payable for the issuance of a gratuitous license receipt. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 5, 6-21-22) Sec. 21-55. Fee-exempt licenses—Limitations.
(a) Every license issued without payment of the usual fee shall be stamped "Fee- Exempt" upon its face. (b) Any license issued as fee-exempt shall be subject to suspension and revocation by the collector in the event that it is determined by the collector that the applicant is not entitled to exemption. All such suspensions and revocations shall be made after notice and right to a hearing pursuant to Section 21-41. (c) Any license issued as fee-exempt shall be void and shall afford no defense in any civil or criminal prosecution if any material statement contained in the application, statement of facts or any other document or representation made to the collector in claiming the exemption is false or fraudulent. (d) No fee-exempt license may be transferred or loaned.

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(e) Upon uncertainty, for lack of information or otherwise, as to the entitlement of any organization or activity to a fee-exempt license, the collector may require the filing of a verified report of all funds received and disbursed by any licensee. Upon demand such licensee shall file said report in the form and detail as required by the collector within fifteen (15) days after demand. (Ord. No. NS-1922, § 1, 7-20-87)
ARTICLE VI. APPORTIONMENT
Sec. 21-56. Constitutional apportionment.

None of the business taxes provided for by this Chapter shall be so applied so as to occasion an undue burden upon interstate commerce or be violative of the constitutions of the United States and/or the State of California.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-57. Apportionment; necessary rules and regulations.

When, by reason of the provisions of the Constitution of the United States or the Constitution of the State of California, the business tax imposed by the provisions of this Chapter cannot be enforced as to any single class or set of classes of business or business activity without there being an apportionment according to the amount of business done in the city, or in the State of California, as the case may be, the collector, having first obtained the approval of the city attorney shall make such rules and regulations for the apportionment of the tax as are necessary or otherwise desirable to overcome the constitutional objections. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-58. Burden on interstate commerce; petition for adjustment.

In any case where a license tax is claimed by a licensee, or applicant for license to place an undue burden upon interstate commerce, or be violative of the constitutions of the United States and/or the State of California, he or she may apply to the 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 (6) months after payment of the prescribed license tax. 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 collector may deem necessary in order to determine the extent, if any, of undue burden on such commerce. The collector shall then conduct an investigation and, having first obtained the approval of the city attorney, shall fix as the license tax for the applicant an amount that is reasonable and nondiscriminatory. If the license tax has already been paid, he or she shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the collector may base the license tax upon a percentage of the gross receipts of any other measure which will assure that the license tax levied shall be uniform with that levied on businesses of like nature so long as the amount levied does not exceed the license tax as prescribed by this Chapter. Should the collector determine the gross receipts measure of business tax to be the proper ba sis, 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 twelve (12) month period, a verified affidavit of the gross receipts and payment of the amount of license tax therefor; provided that no additional license tax during any one calendar year shall be required after the licensee has paid an amount equal to the annual license tax as prescribed in this Chapter.

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The collector shall, upon proper showing contained in the verified affidavit, cause the issuance of a license to such person showing partial exemption under this section with a license tax based upon the approved reduced gross receipts.

The collector after giving notice and a reasonable opportunity for heari ng to a licensee, shall revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-59. Undue burden on intercity commerce; petition for adjustment.

None of the license taxes provided for in this Chapter shall be so applied as to occasion an undue burden upon any business done in the city, where the business conducted is related to a regularly established business conducted elsewhere. In any case where a license tax is claimed by any licensee or applicant for license to place an undue burden upon such commerce, he or she may apply to the 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 (6) months after payment of the prescribed license tax. The applicant shall by affidavit and supporting testimony show his or her method of conducting business, the gross volume of business inside the city, and such other information as the collector may deem necessary in order to determine the extent, if any, of undue burden of such commerce. The collector shall then conduct an investigation, and, after having first obtained the written approval of the city attorney, shall fix as the business tax for the applicant an amount that is reasonable and nondiscriminatory. If the license tax has already been paid, he or she shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the collector may base the license tax upon a percentage of gross receipts from business conducted inside the city or any other measure which will assure that the business tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the business tax as prescribed by this Chapter. Should the collector determine the gross receipts measure of business tax to be the proper basis, he or she may require the applicant to submit, either at the time of termination of applicant's business in the city, or at the end of each twelve (12) month period, a verified affidavit of the gross receipts and payment of the amount of license tax therefor; provided that no additional license tax during any one calendar year shall be required after the licensee has paid an amount equal to the annual license tax as prescribed in this Chapter.

The collector shall, upon proper showing contained in the verified affidavit, cause the issuance of a li cense to such person showing partial exemption under this section with a license tax based upon the approved reduced gross receipts.

The collector after giving notice and a reasonable opportunity for hearing to licensee, shall revoke any license granted pursuant to this section upon information that the person is not entitled to the adjustment as provided herein.
(Ord. No. NS-1922, § 1, 7-20-87)
ARTICLE VII. PROCEDURE
Sec. 21-60. Application; auto registration—Service fee.

Before any license is issued, the applicant shall make a written application to the collector, which shall contain the following information:

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(1) The exact nature or kind of business, profession, show, exhibition, game, occupation or enterprise for which the license is requested;
(2) The place where such business, profession, show, exhibition, or enterprise is to be carried on; and if the same is not to be carried on at any permanent place of business, the residence address, identified as such, of the owners of the same;
(3) The address where the applicant shall consent to receive mail concerning the license applied for; (4) Where any person contracts, sells or delivers any goods, wares or merchandise in the city for which sales or use tax is payable, the application shall set for the appropriate California State Board of Equalization permit number;
(5) Where any person employs others in the course of such business the application shall set forth the appropriate federal and/or state employer identification number; (6) Where any person conducting any business is self-employed, or is conducting business as a spouse or joint-owner or in any other capacity not requiring a federal and/or state employer identification number the application shall set forth the social security number of the applicant(s). Where any such applicant is not in possession of a social security number the collector in his or her discretion may accept another form of personal identification sufficient to properly identify such applicant; (7) In the event that the application is made for the issuance of a license to a person doing business under a fictitious name, the application shall set forth the names and places of residence of those owning said business or enterprise;
(8) In the event that the application is made for the issuance of a license to a person doing business as a state licensed contractor, the application shall set forth the applicant's state contractor's license number and specialty classification;
(9) In all cases where the amount of tax to be paid is based upon the number of persons employed, or upon the number of vehicles used, or upon the number of rental units in any building or structure, or upon the seating capacity of any auditorium, stadium or enclosure, or upon the number of coin- operated machines or devices, or upon any amount or number which furnishes the basis for determination of the license tax for the particular business referred to in the application, such items must be stated on the application; provided that a newly established business shall make a true estimate or statement of such information and the business tax shall be based upon said estimat ion and shall be paid at the time such license is issued;
(10) Any further information which the collector may require to enable him or her to issue the type of license applied for;
(11) Any further information which the state may require, or any further information which the collector may deem necessary to properly identify the applicant;
(12) A signed statement made under penalty of perjury that the statements therein are true and correct, which statement shall be required to be filed with the collecto r upon submission of any original license application, annual renewal statement, miscellaneous supplementary statement, or other return or filing. Each such declaration of truth of application or statement shall have included therein, or attached thereto, a certification or declaration, which shall be substantially in the following form:

I declare, under penalty of perjury; that this application, return or statement (including any accompanying schedules, statements, and supporting data) has been examined by me, and, to the best of my knowledge, information, and belief, is a full true and correct application, return, or statement and I accordingly so represent.
___________ ________
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(Signature of Owner, or Partner, or Officer of
Corporation, or Other Authorized Agent or
Representative of any of the above said same)
(Date)

(13) In the case of applications submitted via email, the collector in his or her discretion may accept a facsimile copy of the applicant's signature;
(14) In the case of applications submitted via other electronic means, the collector in his or her discretion may accept a digital signature or other unique personal identification number (PIN) verification.

All information specified to be set forth on any application form prescribed by the collector shall be submitted completely and accurately and the license shall be deemed based upon the information submitted and represented. The collector shall not be required to receive or consider, any application, return or statement unless the above quoted declaration, in substantially the form hereinabove set forth, is contained therein or attached thereto and properly executed by the applicant or the authorized agent or representative of the applicant, and it is unlawful and shall be deemed a misdemeanor in any such application, return or statement for such applicant or authorized agent or representative of the applicant to make any statement which is false or which is contrary to the declaration or representation made in the above quoted form.

Any license shall be deemed based upon the application on file, and if the information is incomplete or inaccurate, the license shall be deemed invalid. If information submitted in an application subsequently becomes incomplete or inaccurate by reason of a change in circumstances, the license shall thereafter be deemed invalid.

Upon the collector's learning of any inaccuracy or incompleteness, notice shall be given forthwith to the licensee, at the address shown on the license where the licensee consented to receive information concerning his or her license, that the license is invalid and requesting the licensee to reapply for a re -validated license within thirty (30) days.

Upon the licensee's successful application for a re-validated license within the period hereinabove set the collector shall apply pro rata to the re-validated license the remainder of the sum originally paid by the licensee.

Upon the licensee's failure to make successful application for a re-validated license within the period hereinabove set the collector shall give notice forthwith pursuant to Section 21- 86 that the licensee's license is hereby suspended. Thereafter, upon denial of licensee's appeal it shall be revoked whereupon the licensee's original payment shall be forfeit.

Any person refusing or failing to make application or to provide information required shall be assessed an amount pursuant to Section 21-41, and shall be in violation of this Chapter. The collector, upon making an assessment pursuant to Section 21-41, may in his or her discretion autoregister a license account in the name of any such person for purposes of assessing business license taxes, penalties, interest, charges, and service fees as applicable. Whenever the collector shall cause a license account to be registered an autoregistration service fee shall be applicable in the amount as specified by resolution of the city council. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13) Sec. 21-61. Application processing charge.

A minimum charge is required for the processing of any initial or renewal license application. This charge shall be in addition to the business license tax and shall not be prorated. The charge shall not be refunded if the application is rejected. However, if after receipt of applicant's written notification of cancellation, no required inspection or investigation has taken place pursuant to any applicable provision of this Code, and no business activity has been transacted or carried on, then in that event a refund request for all inspection or investigation fees paid exceeding the amount specified in Section 21-120r(2) may be made pursuant to Section 21-87(d). In no City of Santa Ana
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event, however, shall the application processing charge be made refundable, other than as part of a refund made pursuant to Section 21-87(b). Provided further, that the collector may waive the processing charge in the case of a bonafide nonprofit, charitable, or otherwise fee-exempt licensee.

The provisions of this Chapter notwithstanding, the following application categories shall pay an application processing charge as stated below:
(a) Initial period application processing charge in the amount specified in Section 21 -120i(2). (b) Renewal application processing charge in the amount specified in Section 21-120r(2). (c) Re-validation application processing charge in the amount specified in Section 21 -120r(7). (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2131, § 1, 7-15-91; Ord. No. NS-3028 , § 6, 6-21-22) Sec. 21-62. Contents of license.

All licenses, unless otherwise provided in this Code, shall be prepared and issued by the collector upon the payment to the city of the sum required to be paid hereunder, or upon filing of proof satisfactory to the collector of eligibility for exemption from such payment. Each license so issued shall state upon the face thereof the following:
(1) The license number of the license.
(2) The date of expiration of such license.
(3) The persons to whom the same is issued, or where the said persons are doing b usiness under a fictitious name; both the actual and fictitious names to whom the same is issued. (4) The kind of business, profession, show, exhibition, game, occupation or enterprise licensed and the location of the same.
(5) Where said business involves the contracting, sale, or delivery of any goods, wares or merchandise in the city for which sales or use tax is payable to the state the state sales tax number issued to same. (6) A statement that the holder thereof has paid a license fee or a statement that the holder thereof is exempt from such payment; and said license when issued, shall be deemed the receipt for said payment received by the city.
(7) A statement that this license is issued without verification that the licensee is subject to or exe mpt from licensing by the State of California.
(8) Any additional statement the collector may deem necessary or which the state may require. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-63. Statement of fee; mistake not conclusive.
(a) No greater or lesser amount of money shall be charged or received for any license tax other than provided for in this Chapter. In no case shall any mistake of the collector in stating the amount of a license tax, or of penalties, or interest accrued thereon prevent or prejudice the collection by the city of what should actually be due from any person carrying on a business subject to a license tax under this Chapter. 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 hereunder.

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(b) Where a mistake is made in the issuance of any license with regard to the classification under which said license was issued, then a new license shall be issued in the proper classification in lieu thereof, under the date of the original license, and the licensee shall pay an additional amount required by such a change. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-64. How and when payable; effect of dishonored instrument; return payment service fee.

All business license taxes or deposits in lieu thereof due hereunder shall be paid in advance, in lawful money of the United States, or by check, draft or other instrument in the discretion of the collector, at the office of the collector in the finance department of the city. No business license shall be issued or renewed until the amount due and payable has been paid in full. Any license, the fee for which has been paid by an instrument such as a check, or draft which is dishonored upon presentation for payment, shall be void and of no effect from its inception. The collector, may, in his or her discretion, withhold the effect of this provision if the fee is paid within fifteen (15) days. Payment of license fees following a dishonor of such instrument upon presentation for payment shall thereafter be made only by cashier's check, money order or cash, which fee shall include any applicable penalty, as well as a return payment service fee in the amount as specified by resolution of the city council for such dishonored instrument. The collector shall be authorized to reject payment other than by cash, cashier's check or money order from such licensee for a period of two (2) years following any such dishonor. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13) Sec. 21-65. Same—Method of computation.

In computing the amount of tax to be paid under this Chapter, the amount shall be rounded off to the nearest dollar as follows: If the remaining fraction of a dollar is forty-nine cents ($0.49) or less, such fraction shall be waived; if the remaining fraction of a dollar is fifty cents ($0.50) or more, the next highest full dollar shall be charged.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-66. Same—Application of money towards delinquent fees.

Money received during the current year for a license shall first be applied to the payment of delinquent fees, sums and penalties due during any preceding calendar year, any balance remaining thereafter shall be applied to the payment of the current license fees and penalties. A license issued during any prior year to the same owner, tenant or occupant for the same place of business shall be prima facie evidence in any court or administrative proceeding that the business was continuously operated by the same person or firm from said prior year to the current year.
(Ord. No. NS1922, § 1, 7-20-87)
Sec. 21-67. Nontransferable, change of name or location. (a) No license issued pursuant to this Chapter shall be transferable or assignable; provided, that where a license is issued authorizing a person to conduct a business at a particular place, such licensee may upon application therefor and upon paying a charge in the amount specified in Section 21 -120c(2) have the license amended to authorize the conducting of such business under said license at some other location to which the business is or is to be moved.

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