Agenda
07-12-22 SPECIAL MEETING AGENDA.PDF
Meeting Materials
JULY 12, 2022, MEETING VIDEO
07-12-22 SPECIAL MEETING AGENDA PACKET.PDF
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AGENDA
SPECIAL MEETING OF THE SANTA FE SPRINGS
CITY COUNCIL
July 12, 2022
5:00 P.M.
Juanita Martin, Councilmember
John M. Mora, Councilmember
Jay Sarno, Councilmember
Joe Angel Zamora, Mayor Pro Tem
Annette Rodriguez, Mayor
Council Chambers
11710 Telegraph Road
Santa Fe Springs, CA 90670
You may attend the City Council meeting telephonically or electronically using the following means:
Electronically using Zoom: Go to Zoom.us and click on “Join A Meeting” or use the following link:
https://zoom.us/j/521620472?pwd=U3cyK1RuKzY1ekVGZFdKQXNZVzh4Zz09 Zoom Meeting ID: 521620472 Password: 659847
Telephonically: Dial: 888-475-4499 Meeting ID: 521620472 Public Comment: The public is encouraged to
address City Council on any matter listed on the
agenda only. If you wish to address the City
Council, please use the “Raise Hand” function
via Zoom once the Mayor opens Public
Comment during the meeting. You may also
submit comments in writing by sending them to
the City Clerk's Office at
[email protected]. All written
comments received by 12:00 p.m. the day of the
City Council Meeting will be distributed to the
City Council and made a part of the official record
of the meeting. Written comments will not be
read at the meeting, only the name of the person
submitting the comment will be announced.
Americans with Disabilities Act: In compliance
with the ADA, if you need special assistance to
participate in a City meeting or other services
offered by this City, please contact the City Clerk’s
Office. Notification of at least 48 hours prior to the
meeting or time when services are needed will
assist the City staff in assuring that reasonable
arrangements can be made to provide
accessibility to the meeting or service.
Pursuant to provisions of the Brown Act, no
action may be taken on a matter unless it is listed
on the agenda, or unless certain emergency or
special circumstances exist. The City Council
may direct staff to investigate and/or schedule
certain matters for consideration at a future City
Council meeting.
Please Note: Staff reports, and supplemental
attachments, are available for inspection at the
office of the City Clerk, City Hall, 11710 E.
Telegraph Road during regular business hours
7:30 a.m.-5:30 p.m., Monday-Thursday and every
other Friday. Telephone: (562) 868-0511.
City of Santa Fe Springs
Special Meeting July 12, 2022
2 1. CALL TO ORDER
2. ROLL CALL
Juanita Martin, Councilmember
John M. Mora, Councilmember
Jay Sarno, Councilmember
Joe Angel Zamora, Mayor Pro Tem
Annette Rodriguez, Mayor
3. PUBLIC COMMENTS This is the time when comments may be made by members of the public on matters on the agenda only. The time limit for each speaker is three minutes unless otherwise specified by the Mayor.
CITY COUNCIL
4. STUDY SESSION
Presentation of Potential Changes to the City’s Business Operation Tax Ordinance (Finance)
Recommendation:
• Provide direction regarding potential changes to the City’s Business Operations Tax Ordinance.
5. COUNCIL COMMENTS
6. ADJOURNMENT
I, Janet Martinez, City Clerk for the City of Santa Fe Springs, do hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted at the following locations; City’s website at www.santafesprings.org; Santa Fe Springs City Hall, 11710 Telegraph Road; Santa Fe Springs City Library, 11700 Telegraph Road; and the Town Center Plaza (Kiosk), 11740 Telegraph Road, not less than 24 hours prior to the meeting.
July 8, 2022
Janet Martinez, CMC, City Clerk Date Posted
.
AGENDA
SPECIAL MEETING OF THE SANTA FE SPRINGS
CITY COUNCIL
July 12, 2022
5:00 P.M.
Juanita Martin, Councilmember
John M. Mora, Councilmember
Jay Sarno, Councilmember
Joe Angel Zamora, Mayor Pro Tem
Annette Rodriguez, Mayor
Council Chambers
11710 Telegraph Road
Santa Fe Springs, CA 90670
You may attend the City Council meeting telephonically or electronically using the following means:
Electronically using Zoom: Go to Zoom.us and click on “Join A Meeting” or use the following link:
https://zoom.us/j/521620472?pwd=U3cyK1RuKzY1ekVGZFdKQXNZVzh4Zz09 Zoom Meeting ID: 521620472 Password: 659847
Telephonically: Dial: 888-475-4499 Meeting ID: 521620472 Public Comment: The public is encouraged to
address City Council on any matter listed on the
agenda only. If you wish to address the City
Council, please use the “Raise Hand” function
via Zoom once the Mayor opens Public
Comment during the meeting. You may also
submit comments in writing by sending them to
the City Clerk's Office at
[email protected]. All written
comments received by 12:00 p.m. the day of the
City Council Meeting will be distributed to the
City Council and made a part of the official record
of the meeting. Written comments will not be
read at the meeting, only the name of the person
submitting the comment will be announced.
Americans with Disabilities Act: In compliance
with the ADA, if you need special assistance to
participate in a City meeting or other services
offered by this City, please contact the City Clerk’s
Office. Notification of at least 48 hours prior to the
meeting or time when services are needed will
assist the City staff in assuring that reasonable
arrangements can be made to provide
accessibility to the meeting or service.
Pursuant to provisions of the Brown Act, no
action may be taken on a matter unless it is listed
on the agenda, or unless certain emergency or
special circumstances exist. The City Council
may direct staff to investigate and/or schedule
certain matters for consideration at a future City
Council meeting.
Please Note: Staff reports, and supplemental
attachments, are available for inspection at the
office of the City Clerk, City Hall, 11710 E.
Telegraph Road during regular business hours
7:30 a.m.-5:30 p.m., Monday-Thursday and every
other Friday. Telephone: (562) 868-0511.
City of Santa Fe Springs
Special Meeting July 12, 2022
2 1. CALL TO ORDER
2. ROLL CALL
Juanita Martin, Councilmember
John M. Mora, Councilmember
Jay Sarno, Councilmember
Joe Angel Zamora, Mayor Pro Tem
Annette Rodriguez, Mayor
3. PUBLIC COMMENTS This is the time when comments may be made by members of the public on matters on the agenda only. The time limit for each speaker is three minutes unless otherwise specified by the Mayor.
CITY COUNCIL
4. STUDY SESSION
Presentation of Potential Changes to the City’s Business Operation Tax Ordinance (Finance)
Recommendation:
• Provide direction regarding potential changes to the City’s Business Operations Tax Ordinance.
5. COUNCIL COMMENTS
6. ADJOURNMENT
I, Janet Martinez, City Clerk for the City of Santa Fe Springs, do hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted at the following locations; City’s website at www.santafesprings.org; Santa Fe Springs City Hall, 11710 Telegraph Road; Santa Fe Springs City Library, 11700 Telegraph Road; and the Town Center Plaza (Kiosk), 11740 Telegraph Road, not less than 24 hours prior to the meeting.
July 8, 2022
Janet Martinez, CMC, City Clerk Date Posted
Special Meeting July 12, 2022
Report Submitted By: Travis Hickey Date of Report: July 8, 2022 Finance & Administrative Services Department
City of Santa Fe Springs
STUDY SESSION
Presentation of Potential Changes to the City’s Business Operation Tax Ordinance
BACKGROUND
On July 20, 2021 the City Council approved an agreement with Hinderliter, de Llamas & Associates (“HdL”) for business license administration and related services. The agreement provides for a Business License Tax Ordinance/Fee Study (“Study”) to be performed. The Study includes an analysis of the current Business Operation Tax Ordinance (“Ordinance”) and the City’s tax registration database. The City’s Ordinance is contained in Title III, Chapter 35 of the City Municipal Code beginning with Section 35.070. Data was compiled on the number of businesses, current tax revenues received by the City, categories, and other related information.
HdL’s Study was finalized, providing a series of tax re-structuring options for the City Council’s consideration. On April 20, 2022, at a Special Meeting of the City Council, HdL prepared a presentation to cover the essential elements of the potential options and answer any questions the City Council had.
Based on the direction from the City Council, staff and the City’s consultant with HdL engaged with leaders from the business community to solicit feedback on the proposed options. “Model Seven” was prepared after listening to the business community and taking seriously their feedback along with the City’s general policy objectives. Model Seven combines the gross-receipts approach for most of our business classifications with a square footage rate with a CPI adjustment of between 1% and 5% for the industrial businesses. It also eliminates a tax on property rentals to account for concerns about the tax being passed on to tenants. Additionally, it eliminated the complexity and increased burden of taxing larger square-footage buildings at higher rates. Instead, it taxes the square footage at one rate, thus simplifying the calculation for those businesses and lessening the impact.
As with Model Six, the revenue estimated in Model Seven is heavily reliant on the industrial businesses. Thus, as with Model Six, the gains estimated depend heavily on assumptions about the amount of square footage and on the impact of a tax increase in occupancy and on business retention. We discussed the risk of relocation in the tax study, and that risk has been amplified in the passing months by the increase in gas prices and other economic circumstances that are affecting businesses statewide.
RECOMMENDATION(S)
• Provide direction regarding potential changes to the City’s Business Operations Tax Ordinance.
Special Meeting July 12, 2022
Report Submitted By: Travis Hickey Date of Report: July 8, 2022 Finance & Administrative Services Department
City of Santa Fe Springs
A summary of the estimated revenues by business category and a series of frequently asked questions are attached to this report. The City’s consultant will also present the details on Model Seven for further direction from the City Council.
On April 20, 2022 the City Council also approved an agreement with TBWBH Props & Measures for public outreach related to potential changes to the Ordinance. A public opinion survey was developed and conducted with likely voters during June 2022. The results of the survey will also be presented for further direction from the City Council.
Raymond R. Cruz
City Manager
Attachment(s):
1) Model Seven Financial Summary
2) Frequently Asked Questions
Model Seven: Latest Potential Model for Presentation to City Council Categories
Est. Number of
Businesses Proposed Rate
Estimated Tax
Revenue
Professionals 175 $2.00 per thousand dollars of gross receipts $ 188,125.00 Contractors 966 $1.50 per thousand dollars of gross receipts $ 241,500.00 General Businesses 413 $0.75 per thousand dollars of gross receipts $ 204,143.24 Services 686 $0.75 per thousand dollars of gross receipts $ 217,805.00 Com/Res Property Rentals 3,456 Not Taxed $ -
Industrial Business Activities 1,173 $0.10 per square foot $ 6,303,316.50 Total $ 7,154,889.74
Notes:
Minimum Tax = $25
Maxmum Tax = $50,000
Square footage rate subject to annual CPI adjustment (between 1% and 5% per year).
Square footage is usuable parking area for truck yards and other truck storage businesses Square footage is usable building floorspace for all other Industrial Business Activities ATTACHMENT 1
ATTACHMENT 2