5.04.120 Free licenses.
All applications for free licenses as specifically provided for in this title shall be referred to the city manager, on forms provided, and the city manager shall have the power in the first instance to determine the merits of such applications, and to approve or reject the same. If the city manager finds that the application should be approved, he or she shall cause to be issued to the applicant a free license, or may refer determination to the license review committee. If the city manager or the license review committee shall reject the license, business tax certificate the applicant shall have the right of appeal to the city council. A separate license shall be required for each person intending to exercise any right hereunder. A charge of one dollar shall be made for each free license issued, which shall be used to defray the expense of issuing same. . . .
5.04.135 Apportionment.
A. None of the business taxes provided for by this chapter shall be so applied as to occasion an undue burden upon interstate commerce or be violative of the Equal Protection and Due Process Clauses of the Constitutions of the United States and the state.
B. If the holder of or applicant for a license (the taxable entity) believes that the business tax places an undue burden upon interstate commerce or would be violative of such constitutional clauses, the taxable entity may apply to the license official for an adjustment of the tax (the apportionment application). The taxable entity may make an apportionment application within six months after payment of the prescribed business tax. The taxable entity shall, by sworn statement and supporting testimony, show its method of business, its cost of operations for all locations within the City, and such other information as the license official may deem necessary to determine the extent, if any, of such undue burden on interstate commerce or other violation of constitutional protection.
C. The license official shall then conduct an investigation, which may include but is not limited to inspecting the taxable entity’s books and records and other tax filings, and, after having first obtained the written approval of the city attorney, shall fix as the business tax for the taxable entity an amount that is reasonable and nondiscriminatory, or if the business tax has already been paid, shall order a refund of the amount over and above the business tax so fixed.
D. In fixing the amount of the business tax, the license official shall take the cost of operations for the locations in the City as the minimum amount owed in tax (absent extraordinary evidence to the contrary).
5.04.140 Interstate commerce appeal.
A. None of the license fees business taxes provided for by this title shall be so applied as to occasion an undue burden upon interstate commerce. In any case where a license fees tax is believed by a licensee or applicant for license to place an undue burden upon such commerce, he or she may apply to the license official for an adjustment of the fees tax so that it shall not be discriminatory or unreasonable as to
such commerce. Such application may be made before, at, or within six months after payment of the prescribed license fee business 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 license tax official may deem necessary in order to determine the extent, if any, of such undue burden on such commerce. The license official shall then conduct an investigation, and, after having first obtained the written approval of the city attorney, shall fix as the license fee business tax for the applicant, an amount that is reasonable and nondiscriminatory, or if the license fee business tax has already been paid, shall order a refund of the amount over and above the license fee business tax so fixed. In fixing the license fee business tax to be charged, the license official shall have the power to base the license fee business tax upon a percentage of gross receipts or any other measure which will assure that the license fee business tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license fee business tax as prescribed by this title. Should the license official determine the gross receipts measure of license fee 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 three-month period, a sworn statement of the gross receipts bracket of the applicant and to pay the amount of license fee business tax therefor; provided, that no additional license fee business tax during any one calendar year shall be required after the licensee shall have paid an amount equal to the annual license fee business tax as prescribed in this title.
B. Any person claiming an exemption pursuant to this section shall file a verified statement with the license official stating the facts upon which exemption is claimed.
C. The license official shall, upon a proper showing contained in the verified statement, issue a license to such person claiming exemption under this section without payment to the city of the license fee business tax required by this title.
D. The license official, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license exemption granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein.
5.04.150 Public sale exempted.
No license business tax shall be required for the selling of goods at public sale, such goods belonging to the United States of America or to the state of California, or for sale of property by virtue of any process issued by any state or federal court, or for the sale of any property of an estate by the legally appointed guardian thereof. . . .
5.04.170 Exemptions.
The following businesses are exempt from the business license tax imposed by this chapter:
A. Any business exempt from the tax by the laws of the United States or the State of California. Any charitable or nonprofit organization exempted from taxes by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of
Subtitle A of the Internal Revenue Code of 1986, or the successor of either, is exempt from the provisions of this title.
B. Any business, organization or entity exempt under California Business and Professions Code Section 16000(b) is exempt from the provisions of this title.
CB. Upon approval of the license official, any person that has been issued a permit to operate at a special event and that does not have a fixed place of business in the city and is not otherwise engaged in business within the city, shall be exempt from the provisions of this title.
5.04.180 Filing Application – Contents of license.
Every person required to have a license under the provisions of this title shall make application for the same to the license official of the city, and upon the payment of the prescribed license fee business tax the license official shall issue to such person a business license which shall contain:
A. The name of the person to whom the license is issued; B. The name of the business to be licensed;
C. The place where such business is to be transacted and carried on; D. The date of the expiration of such license;
E. Such other information as may be necessary for the enforcement of the provisions of this title.
5.04.190 Affidavit for first license.
A. Upon a person making application for the first license to be issued hereunder or for a newly established business, and in all cases where the amount of license fee business tax to be paid is measured by gross receipts, such person shall furnish to the license official for guidance in ascertaining the amount of license business tax to be paid by the applicant, a written statement, upon a form provided by the license official, sworn to before a person authorized to administer oaths, or sworn to under penalty of perjury, setting forth such information as may be therein required and may be necessary to determine the amount of the license fee business tax to be paid by the applicant.
B. If the amount of the license fee business tax to be paid by the applicant is measured by gross receipts, he or she shall estimate the gross receipts for the period to be covered by the license to be issued, and report the applicable bracket therefor.
Such report, if accepted by the license official as reasonable, shall be used in determining the amount of license fee business tax to be paid by the applicant; provided, however, the amount of the license fee business tax so determined shall be tentative only, and such person shall within 30 days after the expiration of the period for which such license was issued, furnish the license official with a sworn statement, upon a form furnished by the license official showing the applicable bracket during the period of such license, and the license fee for such period shall be finally ascertained and paid in the manner provided by this title for the ascertaining and paying of renewal license fee business tax for other businesses, after deducting from the payment found to be due, the amount paid at the time such first license was issued.
C. The license official shall not issue to any such person another license for the same or any other business, until such person shall have furnished to the license official the written statement and paid the license fee business tax as herein required.
5.04.200 Affidavit for renewal of license.
In all cases, the applicant for the renewal of a license shall submit to the license official for guidance in ascertaining the amount of the license fee business tax to be paid by the applicant, a written statement, upon a form to be provided by the license official, written under penalty of perjury, or sworn to before a person authorized to administer oaths, setting forth such information concerning the applicant's business during the preceding year as may be required by the license official to enable him or her to ascertain the amount of license fee business tax to be paid by the applicant pursuant to the provisions of this title.
5.04.210 Statements not conclusive; confidential information.
A. No statements 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. Such statement and each of the several items therein contained shall be subject to audit and verification by the license tax official, deputies, or authorized employees of the city, who are authorized to examine, audit, and inspect such books and records of any licensee or applicant for license, as may be necessary in their judgment to verify or ascertain the amount of license fee business tax due.
B. All licensees, applicants for licenses, and persons engaged in business in the city are required to permit an examination of such books and records for the purposes aforesaid.
C. The information furnished or secured pursuant to this section or Section 5.04.190 or 5.04.200 of this title shall be confidential. Any unauthorized disclosure or use of such information by any officer or employee of the city shall constitute a misdemeanor, and such officer or employee shall be subject to the penalty provisions of the Upland Municipal Code, in addition to any other penalties provided by law. . . .
5.04.260 No license transferrable.
No license issued pursuant to this title shall be transferable; provided, that where a license is issued authorizing a person to transact and carry on a business at a particular place, such licensee may upon application therefor and paying a fee of two dollars have the license amended to authorize the transacting and carrying on of such business under the license at some other location to which the business is or is to be moved.
5.04.270 Duplicate license.
A duplicate license may be issued by the license official to replace any license previously issued hereunder which has been lost or destroyed upon the licensee filing statement of such fact, and at the time of filing such statement paying to the license official a duplicate license fee of three dollars.
. . .
5.04.300 License Fee Business Tax – How and when payable.
A. Unless otherwise specifically provided, all license fees business taxes for licenses issued between January 1st and June 30th under the provisions of this title shall be due and payable in advance on the first day of January each year; all license fees business taxes for licenses issued between July 1st and December 31st under the provisions of this title shall be due and payable in advance on the first day of July each year.
1. Monthly license fees, on the first day of each and every month.
2. Weekly license fees, on Monday of each week.
3. Daily license fees, each day.
B. In all cases, the applicant shall, upon filing his or her application, pay the prescribed license fees business taxes in advance.
C. Unless otherwise provided for in this title, where any person who is engaged in business ceases business and surrenders his or her license after having exercised the privilege granted pursuant to this title, such person shall not be entitled to a refund for any license fees business taxes paid in advance or any portion thereof. . . .
5.04.330 License fee Business Tax a debt.
The amount of any license fee business tax and penalty imposed by the provisions of this title shall be deemed a debt to the city. An action may be commenced in the city in any court of competent jurisdiction, for the amount of any delinquent license fee business tax and penalties.
. . .
5.04.350 Business classifications schedule - license fees business license taxes generally.
A. Every person who engages in any business, whether or not at a fixed place of business within the city, shall pay a business license fee tax based upon a classification in one of the following sections.:
B. The determination of the class of business in which an applicant for a license is deemed to be engaged under this section shall be a ministerial task of the license official.
C. If a licensee or applicant disagrees with the determination of the license official as to the class of business in which the licensee or applicant is engaged, the licensee or applicant may apply to the license official for reclassification. This application shall set forth with specificity the facts upon which it is based. Upon receipt of a reclassification application, the license official shall investigate and review the matter and shall either affirm the original classification or assign a new classification and shall notify the licensee or applicant of the decision in writing.
D. The license official may refuse to accept an application for reclassification from a licensee or applicant who has applied for reclassification within the
previous twelve (12) months if the application fails to state material and relevant facts which were not and could not have been presented in the previous reclassification application.
E. The decision of the license Tax Official on an application for reclassification shall be final as to the City, but subject to judicial review pursuant to Cal. Code of Civil Procedure § 1094.5.
A. Gross receipts schedule as set forth in Section 5.04.360; B. Professional and semiprofessional schedule as set forth in Section 5.04.370; C. Flat rate schedule as contained in Section 5.04.400, or as provided in Chapters
5.08 through 5.72 of this title.
5.04.360 Classification A – Retail, wholesale, manufacturing, processing, professional, and semiprofessional services/callings or other business – Business License fees taxes - Gross receipts.
A. Every person engaged in any retail, general commercial, wholesale, contracting, professional or semiprofessional service/calling, non- professional or non-semiprofessional servicing business activity or the rental of residential or nonresidential property, whether or not at a fixed place of business within the city, and not otherwise classified herein, shall pay an annual license fee tax based upon annual gross receipts as set forth below; provided, however, where such person is engaged in business less than one year ceases business and surrenders the license, such person shall be entitled to a refund of the difference, if any, between the actual gross receipts for the period while actually engaged in business and the estimated gross receipts reported when the license was applied for as set forth in the following gross receipts schedule, but in no event shall such person pay less than the minimum license fee business license tax herein specified:
For the first $100,000 of gross annual receipts, only the minimum business license tax set forth in subsection (B) shall be due. For all gross annual receipts above $100,000, the business license tax rates shall be as follows:
Retail/General Commercial 0.075% of gross annual receipts Contractor 0.2% of gross annual receipts
Rental, Commercial or Residential 0.3% of gross annual receipts General Service (nonprofessional
or non-semiprofessional)
(e.g. hair and nail salons,
______________)
0.17% of gross annual receipts
Professional or semiprofessional
service/calling
0.175% of gross annual receipts
B. Notwithstanding the above, regardless of gross annual receipts, every such person shall pay a minimum business license tax of $50.00 per year and no such person shall be required to pay a business license tax of greater than $29,500 for any particular year. The minimum and maximum amount of the tax shall be subject to an annual increase each January 1 in an amount equivalent to increase in the Consumer Price Index (CPI) applicable to this statistical area, not to exceed 5% each year.
GROSS RECEIPTS SCHEDULE
Gross Annual Receipts Fee
$0.00 TO $20,000 $54.00 (for a business physically located in Upland
$0.00 TO $40,000 $75.60
$40,001.00 to $60,000 $97.20
$60,001.00 to $100,000 $140.40
$100,001.00 to $200,000 $183.60
$200,001.00 to $300,000 $216.00
$300,001.00 to $400,000 $279.00
$400,001.00 to $500,000 $324.00
$500,001.00 to $600,000 $378.00
$600,001.00 to $700,000 $432.00
$700,001.00 to $800,000 $486.00
$800,001.00 to $900,000 $540.00
$900,001.00 to $1,000,000 $594.00
$1,000,001.00 to $1,100,000 $648.00
$1,100,001.00 to $1,200,000 $702.00
$1,200,001.00 to $1,300,000 $756.00
$1,300,001.00 to $1,400,000 $810.00
$1,400,001.00 and above $864.00
In addition to the above schedule, businesses with liquor sales shall pay $75.60 per year (gross receipts reported pursuant to the above schedule shall have deducted therefrom the gross receipts attributable to liquor sales, only).
Other Businesses Fee
Circus, carnival, etc. $540.00 per year
Massage technician, incident to primary
business
$54.00 per year
Public utilities $216.00 per year.
5.04.370 Classification A – License fees – Professional and semiprofessional. [Reserved]
Every person who engages in the practice of a profession or a semiprofessional calling within the city of Upland as set forth below.
Professions, and semiprofessional callings, and similar businesses shall include, but not be limited to the following: accountant, advertising agent (except outdoor advertising), appraiser, aquarist, architect, artist, assayer, attorney-at-law, bacteriologist biologist, certified public accountant, chemist, chiropodist, chiropractor, chirothesiast, collection agent, consulting or design engineer, credit counselor, credit rater, dentist, designer, illustrator, doctor of medicine, draftsman, drugless practitioner, electrologist, engraver, engineer—civil, chemical, structural or hydraulic—entomologist, geologist, insurance claims adjuster, laboratory, landscape architect, lapidary, lithographer, masseur or masseuse massage therapist/technician, mechanical engineer, oculist, optometrist, orthodontist, osteopathic physician, personnel consultant, physician, real estate agent or broker— including salespersons—surgeon, surveyor, taxidermist, and veterinarian shall pay a license fee based upon the following schedule: for each practicing member of the firm practicing his or her profession, $54.00 per year; for each employee in addition to the above, $4.50 per year.
5.04.380 Classification A – License fees – Manufacturers and processors. [Reserved]
Every person who engages in manufacturing or processing of materials in as a business activity, and who is not otherwise classified herein, shall pay an annual license fee based on the following schedule:
1-5 employees $54.00
6-15 employees $108.00
16-30 employees $216.00
31 or more employees $324.00
5.04.390 License fee – no fixed place of business. [Reserved] Where there is no fixed place of business for a business activity specified within Classification A herein, the license fee shall be computed on the basis of the annual gross receipts of all activity carried on within the city (see Section 5.04.360).
5.04.400 Classification B – Miscellaneous business - License fees (fixed rates – minimum). [Reserved]
A. Administrative Office.
Base fee, per year $54.00
Each employee, per year $ 4.50
B. Recreation and Entertainment.
Rides of games of skill, per year (separate from circus carnival) $54.00 Arcade games, per year/per unit $54.00
Social club, dancing club, per year $108.00
C. Residential Property Rental.
Less than three units or rooms No fee
Three units or rooms, per year $54.00
Each additional unit or room, per year $ 4.50
D. Solicitations.
Charitable, per year $ 9.00
Solicitors, canvassers, peddlers, per person, per year $216.00
E. Transportation.
Delivery by vehicle, per vehicle, per year $54.00
Taxicab, per vehicle, per year $54.00
5.04.410 Solicitors, peddlers and canvassers and other Business not specified.
Any solicitor, peddler and canvasser and any other business not otherwise specified or provided for in this title shall pay a license tax be licensed on the basis of based upon gross receipts at the rate set forth above for general service businesses, Classification A.”
SECTION 2. The License Tax set forth herein shall be collected and administered in the manner set forth in Chapter 5.04 of the Upland Municipal Code.
SECTION 3. Pursuant to Article XIIIB of the California Constitution, the appropriation limit for the City of Upland will be increased by the maximum projected aggregate collection authorized by the levy of this general tax, as indicated in Section 1, in each of the years covered by this Ordinance plus the amount, if any, by which the appropriation limit is decreased by law as a result of the levy of the general tax set forth in this Ordinance.
SECTION 4. If any portion of this Ordinance is declared invalid by a court of law or other legal body with applicable authority, the invalidity shall not affect or prohibit the force and effect of any other provision or application of the Ordinance that is not deemed invalid. The voters of the City hereby declare that they would have circulated for qualification and/or voted for the adoption of this Section, and each portion thereof, regardless of the fact that any portion of the initiative may be subsequently deemed invalid.
SECTION 5. Pursuant to California Constitution Article XIIIC §(2)(b) and California Elections Code §9217, this Ordinance shall take effect only if approved by a majority of the eligible voters of the City of Upland voting at the General Municipal Election to be held on November 5, 2024. The new taxing rate shall go into effect on July 1, 2025.
SECTION 6. The Mayor is hereby authorized to attest to the adoption of this Ordinance by the People voting thereon on November 5, 2024, by signing where indicated below.
I hereby certify that the foregoing Ordinance was PASSED, APPROVED AND ADOPTED by the People of the City of Upland on the 5th day of November, 2024.
Bill Velto, Mayor
ATTEST:
Keri Johnson, City Clerk
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UPLAND,
CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE
COUNTY OF SAN BERNARDINO TO CONSOLIDATE A GENERAL
MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024 WITH THE
STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE
PURSUANT TO §10403 OF THE ELECTIONS CODE
WHEREAS, on July 22, 2024, the City Council of the City of Upland adopted Resolution No. XXXX, calling a General Municipal Election to be held on November 5, 2024; for the purpose of submitting to the voters the question relating to the Business License Tax; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and that the election department of the County of San Bernardino canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.
NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines and resolves as follows:
Section 1. Request for Consolidation. Pursuant to the requirements of §10403 of the Elections Code, the Board of Supervisors of the County of San Bernardino is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 5, 2024, for the purpose of submitting to the voters the following question relating to the Business License Tax.
Section 2. Measure Language. A measure is to appear on the ballot as follows:
“Upland public safety, streets, city services measure
Shall the measure maintaining 911 emergency response,
neighborhood police patrols; repairing streets, potholes; cleaning/maintaining public areas, addressing
homelessness; retaining local businesses; and general City services by updating Upland’s business license tax to
establish rates set forth in the measure, reducing taxes on small businesses, no tax increase on residents, generating approximately $3,500,000 annually until ended by voters; requiring public spending disclosure, audits, local funding control, be adopted?”
Yes
No
Section 3. Canvass of Returns. The County election department is authorized to canvass the returns and perform all other proceedings incidental to and connected with the General Municipal Election. The Election shall be held in all
Resolution No.
respects as if there were only one election, and only one form of ballot shall be used.
Pursuant to California Elections Code Sections 10403 and 10418, the election will be held and conducted in accordance with the provisions of law regulating the Statewide General Election.
Section 4. Necessary Steps. The Board of Supervisors is requested to issue instructions to the County election department to take any and all steps necessary for the holding of the consolidated election.
Section 5. Costs. The City Council determines and declares that the City will pay to the County the reasonable and actual expenses incurred by the County by the consolidation of the General Municipal Election with the Statewide General Election. The City shall reimburse the County for services performed when the work is completed and upon presentation to the City of a properly approved bill. The City Manager of the City of Upland is authorized and directed to pay for the expenses incurred after receiving a statement from the County of San Bernardino.
Section 6. Filing of Resolution. The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the election department of the County of San Bernardino.
Section 7. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED and ADOPTED this 22nd day of July, 2024.
Bill Velto, Mayor
I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 22nd day of July, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
ATTEST:
Keri Johnson, City Clerk
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UPLAND,
CALIFORNIA, PROVIDING FOR THE FILING OF PRIMARY AND REBUTTAL
ARGUMENTS AND SETTING RULES FOR THE FILING OF WRITTEN
ARGUMENTS REGARDING A CITY MEASURE TO BE SUBMITTED AT THE NOVEMBER 5, 2024 GENERAL MUNICIPAL ELECTION
WHEREAS, a General Municipal Election is to be held in the City of Upland, California on November 5, 2024, at which there will be submitted to the voters the following measure:
“Upland public safety, streets, city services measure
Shall the measure maintaining 911 emergency response,
neighborhood police patrols; repairing streets, potholes; cleaning/maintaining public areas, addressing
homelessness; retaining local businesses; and general City services by updating Upland’s business license tax to
establish rates set forth in the measure, reducing taxes on small businesses, no tax increase on residents, generating approximately $3,500,000 annually until ended by voters; requiring public spending disclosure, audits, local funding control, be adopted?”
Yes
No
NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines and resolves as follows:
Section 1. Primary Arguments. That the City Council directs that arguments for and against the measure may be filed in accordance with applicable law, and that neither City Council as a body or any individual member of Council is directed to file a written argument or any rebuttal argument for or against the measure, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, and to change the argument until and including the date fixed below by the City Clerk, after which no arguments for or against the City measure may be submitted to the City Clerk.
The deadline to submit arguments for or against the City Measure pursuant to this Resolution is declared by the City Clerk to be Monday, August 19, 2024, at 12:00 p.m. Each argument shall not exceed 300 words and shall be filed with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument.
Section 2. Rebuttal Arguments. Pursuant to Section 9285 of the Elections Code of the State of California, when the City Clerk has selected the primary arguments for and against the City Measure which will be printed and distributed to the voters, the Clerk shall send copies of the primary argument in favor of the
Resolution No.
Measure to the authors of the primary argument against, and copies of the primary argument against to the authors of the primary argument in favor. The authors or persons designated by them may prepare and submit rebuttal arguments not exceeding 250 words. The rebuttal arguments shall be filed with the City Clerk not later than Thursday, August 22, 2024, at 5:00 p.m. Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut.
Section 3. Prior Resolutions. That all previous resolutions providing for the filing of primary and rebuttal arguments related to City measures are repealed.
Section 4. November 5, 2024 Election. That the provisions of Sections 1 and 2 shall apply only to the election to be held on November 5, 2024, and shall then be repealed.
Section 5. Certification. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original Resolutions.
PASSED, APPROVED and ADOPTED this 22nd day of July, 2024.
Bill Velto, Mayor
I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 22nd day of July, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
ATTEST:
Keri Johnson, City Clerk
DATE: July 22, 2024
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: CHRISTOPHER ALANIS, INTERIM PUBLIC WORKS DIRECTOR
NICOLE DEMOET, ENVIRONMENTAL COMPLIANCE PROGRAMS MANAGER SUBJECT: CONSIDER SETTING A PUBLIC HEARING AND DIRECTING STAFF TO PREPARE A PROP 218 NOTIFICATION FOR A WATER AND SEWER RATE CPI INCREASE
RECOMMENDED ACTION:
It is recommended that the City Council direct staff to prepare a Proposition 218 notice for a rate increase to recover the FY 2023/2024 Consumer Price Index (CPI) effective November 1 , 2024 for water and sewer service rates and set a Public Hearing for October 14, 2024.
GOAL STATEMENT
The proposed action supports the City’s goal of ensuring customer rates are cost effective, equitable, and generate the necessary revenue to cover operational, debt service, capital investments, and reserves to meet program requirements .
BACKGROUND
The City’s water and sewer rates reflect the true cost of operating, maintaining, and upgrading Upland’s water and sewer systems. To ensure that the City can continue to ensure that customer rates generate the necessary revenue to deliver the services that the community depends upon, staff is proposing an increase to water and sewer rates to capture only the inflationary Consumer Price Index (CPI) increase observed in Fiscal Year 2023/2024, as documented and published by the U. S. Department of Labor, Bureau of Labor Statistics (BLS). Effective November 1, 2024, the CPI increase would be 4.0%, as listed in the May 2023-May 2024 period referenced in the BLS Riverside-San Bernardino- Ontario, CA data released on June 12, 2024.
ISSUES AND ANALYSIS
The CPI measures the changes in prices over time for goods and services by area for consumers. The adjustment of the addition of the inflationary CPI increase to the water and sewer rate would be considered a pass-thru fee adjustment to recover real costs associated with the provision of water and sewer service. It’s important to ensure revenue is adequate to meet sewer and water program requirements and to provide cost effective services to the public. City rates are designed to collect only what is necessary to meet the program expenses related to providing reliable and safe services and maintaining adequate reserves.
The City will need to initiate a Proposition 218 notification to allow adjustments for both the City water and sewer rates prior to the implementation of the rate adjustment. The initial step in doing so would be to authorize the City Manager to post a Proposition 218 public notification of a CIP water and sewer rate adjustment, and to set a public hearing for consideration.
ENVIRONMENTAL DETERMINATION
This action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060 (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change, directly or indirectly.
FISCAL IMPACTS
The fiscal impact associated with this action will be the offset and recovery of costs resulting from increases in CPI as a result of higher realized costs of providing water and sewer services to ratepayers.
ALTERNATIVES
Provide alternative direction to staff.
CEQA: Not a Project.
Western Information Office
News Release Information
24-1158-SAN
Wednesday, June 12, 2024
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Bureau of Labor Statistics Geographic Information Western News Release Consumer Price Index, Riverside Area — May 2024
Area prices were up 0.6 percent over the past two months, up 4.0 percent from a year ago Prices in the Riverside area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), advanced 0.6 percent for the two months ending in May 2024, the U.S. Bureau of Labor Statistics reported today. (See table A.) Regional Commissioner Chris Rosenlund noted that the May increase was influenced by higher prices for shelter and gasoline. (Data in this report are not seasonally adjusted. Accordingly, bi-monthly changes may reflect seasonal influences.) Over the last 12 months, the CPI-U increased 4.0 percent. (See chart 1 and table A.) Food prices rose 2.8 percent. Energy prices advanced 5.8 percent, largely the result of an increase in the price of gasoline. The index for all items less food and energy rose
4.1 percent over the year. (See table 1.)
View Chart Data
Food
Food prices rose 1.3 percent for the two months ending in May. (See table 1.) Prices for food at home increased 1.2 percent, with higher prices in four of the six grocery categories. Prices for food away from home increased 1.3 percent for the same period.
Over the year, food prices rose 2.8 percent. Prices for food at home increased 0.6 percent since a year ago, led by higher prices for meats, poultry, fish, and eggs (4.1 percent).
Prices for food away from home increased 5.7 percent.
Energy
The energy index advanced 1.6 percent for the two months ending in May. The increase was mainly due to higher prices for gasoline (5.0 percent). Prices for natural gas service fell 8.3 percent, and prices for electricity declined 2.0 percent for the same period.
Energy prices advanced 5.8 percent over the year, largely due to higher prices for gasoline (6.9 percent). Prices paid for electricity increased 9.0 percent, while prices for natural gas service declined 10.0 percent during the past year.
All items less food and energy
The index for all items less food and energy rose 0.4 percent in the latest two-month period. Higher prices for medical care (1.7 percent) and shelter (0.7 percent) were partially offset by lower prices for apparel (-2.6 percent) and recreation (-2.0 percent).
Over the year, the index for all items less food and energy advanced 4.1 percent. Components contributing to the increase included shelter (7.4 percent) and medical care (7.3 percent). Partly offsetting the increases were price decreases in household furnishings and operations (-6.5 percent) and new and used motor vehicles (-4.0 percent).
Table A. Riverside-San Bernardino-Ontario, CA, CPI-U 2-month and 12-month percent changes, all items index, not seasonally adjusted Month
2020 2021 2022 2023 2024
2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month January 0.5 3.0 0.9 2.2 1.5 8.6 1.3 7.3 0.0 2.9
March 0.0 2.3 1.3 3.6 2.7 10.0 0.0 4.6 1.4 4.3
May -0.2 0.9 2.0 5.9 1.4 9.4 0.8 3.9 0.6 4.0
July 0.7 1.7 1.3 6.5 1.1 9.2 0.6 3.4
September 0.5 1.7 0.8 6.8 0.0 8.4 1.4 4.9
November 0.4 1.9 1.4 7.9 0.6 7.5 0.0 4.3
The July 2024 Consumer Price Index for the Riverside area is scheduled to be released on August 14, 2024.
Technical Note
The Consumer Price Index (CPI) is a measures of the average change in prices over time in a fixed market basket of goods and services. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) a CPI for All Urban Consumers (CPI-U) which covers approximately 93 percent of the total U.S. population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 percent of the total U.S. population. The CPI-U includes, in addition to wage earners and clerical workers, groups such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force.
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The CPI is based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Each month, prices are collected in 75 urban areas across the country from about 6,000 housing units and approximately 22,000 retail establishments—department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments. All taxes directly associated with the purchase and use of items are included in the index.
The index measures price changes from a designated reference date; for most of the CPI-U the reference base is 1982-84 equals 100. An increase of 7 percent from the reference base, for example, is shown as 107.000. Alternatively, that relationship can also be expressed as the price of a base period market basket of goods and services rising from $100 to $107. For further details see the CPI home page on the Internet at www.bls.gov/cpi and the CPI section of the BLS Handbook of Methods available on the internet at www.bls.gov/opub/hom/cpi/ .
In calculating the index, price changes for the various items in each location are averaged together with weights that represent their importance in the spending of the appropriate population group. Local data are then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local area index is subject to substantially more sampling and other measurement error than the national index. In addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period.
The Riverside-San Bernardino-Ontario, CA metropolitan area includes Riverside and San Bernardino Counties in California.
Information in this release will be made available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.
Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods Riverside-San Bernardino-Ontario (December 2017=100 unless otherwise noted) Item and Group
Indexes Percent change from-
Historical
data
Mar.
2024
Apr.
2024
May
2024
May
2023
Mar.
2024
Apr.
2024
Expenditure category
All items 133.144 -133.943 4.0 0.6 -
Food and beverages 134.572 -136.110 2.5 1.1 -
Food 135.797 -137.539 2.8 1.3 -
Food at home 130.972 131.352 132.597 0.6 1.2 0.9
Cereals and bakery products 151.710 152.711 151.239 0.7 -0.3 -1.0 Meats, poultry, fish, and eggs 133.675 133.487 137.414 4.1 2.8 2.9 Dairy and related products 110.810 114.168 117.146 -0.2 5.7 2.6 Fruits and vegetables 126.355 130.108 132.382 0.1 4.8 1.7 Nonalcoholic beverages and beverage materials 135.187 130.188 128.792 0.2 -4.7 -1.1 Other food at home 125.873 125.595 125.967 -1.7 0.1 0.3 Food away from home 143.003 -144.912 5.7 1.3 -
Alcoholic beverages 111.830 -109.952 -2.0 -1.7 -
Housing 139.682 -140.216 5.4 0.4 -
Shelter 139.058 139.573 140.020 7.4 0.7 0.3
Rent of primary residence 143.807 144.379 144.724 5.7 0.6 0.2 Owners' equiv. rent of residences 138.189 138.996 139.557 8.2 1.0 0.4 Owners' equiv. rent of primary residence 138.189 138.996 139.557 8.2 1.0 0.4 Fuels and utilities 165.092 -161.525 5.1 -2.2 -
Household energy 178.023 170.905 172.496 4.8 -3.1 0.9
Energy services 179.606 172.403 174.048 5.0 -3.1 1.0
Electricity 189.156 186.287 185.321 9.0 -2.0 -0.5
Utility (piped) gas service 150.015 125.888 137.624 -10.0 -8.3 9.3 Household furnishings and operations 118.505 -119.219 -6.5 0.6 - Apparel 113.242 -110.325 -5.5 -2.6 -
Transportation 139.741 -141.870 5.7 1.5 -
Private transportation 142.395 -144.318 5.9 1.4 -
New and used motor vehicles 115.982 -116.427 -4.0 0.4 - New vehicles 114.308 -113.916 -4.0 -0.3 -
Used cars and trucks 131.768 -132.592 -8.8 0.6 -
Motor fuel 159.812 171.965 167.386 6.4 4.7 -2.7
Gasoline (all types)160.072 172.675 168.062 6.9 5.0 -2.7 Gasoline, unleaded regular(1)160.667 173.475 168.683 6.9 5.0 -2.8 Gasoline, unleaded midgrade(1)160.426 172.705 168.459 6.8 5.0 -2.5 Gasoline, unleaded premium(1)157.043 168.867 164.894 6.8 5.0 -2.4 Medical care 127.704 -129.844 7.3 1.7 -
Recreation 113.724 -111.457 -0.5 -2.0 -
Education and communication 110.562 -110.438 1.2 -0.1 - Footnotes
(1) Special index based on a substantially smaller sample. - Data not available
NOTE: Index applies to a month as a whole, not to any specific date.
Item and Group
Indexes Percent change from-
Historical
data
Mar.
2024
Apr.
2024
May
2024
May
2023
Mar.
2024
Apr.
2024
Tuition, other school fees, and child care 129.119 -129.439 2.8 0.2 - Other goods and services 125.499 -127.541 1.0 1.6 -
Commodity and service group
All items 133.144 -133.943 4.0 0.6 -
Commodities 126.329 -127.732 -0.3 1.1 -
Commodities less food & beverages 122.070 -123.399 -1.7 1.1 - Nondurables less food & beverages 131.823 -134.833 2.2 2.3 - Durables 111.816 -111.302 -6.3 -0.5 -
Services 138.023 -138.444 7.0 0.3 -
Special aggregate indexes
All items less medical care 133.537 -134.247 3.8 0.5 -
All items less shelter 130.101 -130.815 2.2 0.5 -
Commodities less food 121.711 -122.931 -1.8 1.0 -
Nondurables 133.150 -135.358 2.3 1.7 -
Nondurables less food 130.679 -133.382 1.9 2.1 -
Services less rent of shelter 136.099 -135.835 6.4 -0.2 - Services less medical care services 138.922 -139.358 7.3 0.3 - Energy 167.262 172.176 169.912 5.8 1.6 -1.3
All items less energy 130.228 -130.896 3.9 0.5 -
All items less food and energy 129.366 -129.848 4.1 0.4 - Footnotes
(1) Special index based on a substantially smaller sample. - Data not available
NOTE: Index applies to a month as a whole, not to any specific date.
Last Modified Date: Wednesday, June 12, 2024
U.S. BUREAU OF LABOR STATISTICS Western Information Office Attn: EA & I, 90 Seventh Street Suite 14-100 San Francisco, CA 94103-6715 Telephone:1-415-625-2270 www.bls.gov/regions/west Contact Western Region