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ORDINANCE 1164ORDINANCE NO. 1164 AN ORDINANCE OF THE CITY OF EL SEGUNDO, CALI- FORNIA AMENDING SECTIONS 3.24.030, 3.24.035, 3.24.040, 3.24.050, 5.08.020, 5.08.195 AND 5.08.665 OF THE EL SEGUNDO MUNICIPAL CODE REGARDING MUNICIPAL REVENUE SOURCES WHEREAS, the City of E1 Segundo presently finds itself without sufficient revenues to adequately and completely fund the fundamental municipal services necessary for continued mainten- ance of public health safety and welfare; and WHEREAS, projections indicate that this situation will worsen in the future; WHEREAS, the City, after consulting with the local business community, has determined that it would be acceptable to the business community to increase certain of the municipal taxes; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL SEGUNDO DOES HEREBY ORDAIN AS FOLLOWS: SECTION I. Sections 3.24.030, 3.24.035, 3.24.040 and 3.24.050 of Title 3 of the E1 Segundo Municipal Code are hereby amended as follows: 113.24.030 ELECTRICITY USERS TAX. (a) There is hereby imposed a tax upon every person in the city using electrical energy in the city. The tax imposed by this section shall be at the rate of three percent (3 %) of the charges made for such energy and shall be paid by the person paying for such energy. "Charges," as used in this section, shall include charges made for: (1) metered energy, and (2) minimum charges for service, including customer; charges, service charges, demand charges, standby charges and annual and monthly charges, fuel cost adjustments, etc. (b) As used in this section, the term "using electrical energy" shall not be construed to mean the storage of such energy by a person in a battery owned or possessed by him for use in an automobile or other machinery or device apart from the premises upon which the energy was received, provided however, that the term shall include the receiving of such energy for the purpose of using it in the charging of batteries; nor shall the term include electricity used and consumed by an electric utility supplier in the conduct of its business as an electric public utility; nor shall the term include the mere receiving of such energy by an electric public utility or governmental agency at a point within the city of E1 Segundo for resale; or the use of such energy in the production or distribution of water by a public utility or a governmen- tal agency. (c) The tax imposed by this section shall be collected from the service user by the person -1- rvw /ORD130003 providing such energy. The amount of the tax collected in one (1) month shall be remitted to the tax administrator on or before the last day of the following month. Remittance of tax may be predicated on a formula based upon the payment pattern of the supplier's customer. 3.24.035 TAX ON COGENERATED ELECTRICITY. (a) There is hereby imposed a tax on every person in the city using cogenerated electri- cal energy in the city. The tax imposed by this section shall be at the rate of three percent (3 %) of the value of the cogenerated energy. The value shall be equal to the price an electrical corporation, serving the city, would pay to purchase electrical energy from a cogenerator. The cogenerator shall install and maintain an appropriate utility - type metering system which will enable com- pliance with this section. (b) The tax shall be collected and paid by the cogenerator if the cogenerator consumes the energy. If the cogenerator sells the energy, the tax shall be paid by the person to whom the energy is sold and collected by the cogenerator. (c) The amount of the tax collected in one (1) month shall be remitted to the tax admin- istrator on or before the last day of the following month. 3.24.040 GAS USERS TAX. (a) There is hereby imposed a tax upon every person in the city other than a Gas Corpora- tion, using in the city, gas which is deliv- ered through mains or pipes. The tax imposed by this section shall be at the rate of three percent (3 %) of the charges made for such gas and shall be paid by the person paying for such gas. "Charges," as used in this section, shall include: (1) gas which is delivered through mains or pipes; (2) minimum charges for services, including customer charges, service charges, and annual and monthly charges. (b) There shall be excluded from the base on which the tax imposed in this section is computed: (1) charges made for gas which is to be resold and delivered through mains or pipes; (2) charges made for gas sold for use in production or distribution of water by a public utility or governmental agency; (3) charges made by a gas public utility for gas used and consumed in the conduct of the busi- ness of gas public utilities; (4) charges made for gas used in the propulsion of a motor vehicle, as that phrase is defined in the Vehicle Code of the State of California, utilizing natural gas; and (5) charges related to late payments and returned checks. -2- rvw/ORD130003 (c) The tax imposed by this section shall be collected from the service user by the person selling the gas. The person selling the gas shall, on or before the 20th of each calendar month, commencing on the 20th day of the calendar month after the effective date of this part, make a return to the tax adminis- trator stating the amount of taxes billed during the preceding calendar month. At the time such returns are filed, the person sell- ing the gas shall remit tax payments to the tax administrator in accordance with sched- ules established or approved by the tax administrator. 3.24.050 WATER USERS TAX. (a) There is hereby imposed a tax upon every person in the city using water which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of three percent (3%) of the charges made for such water and shall be paid by the person paying for such water. (b) There shall be excluded from the base on which the tax imposed in this section is computed charges made for water which is to be resold and delivered through mains or pipes; and charges made by a municipal water department, public utility or a county or municipal water district for water used and consumed by such department, utility or dis- trict. (c) The tax imposed by this section shall be collected from the service user by the person selling the water. The amount collected in one (1) month shall be remitted to the tax administrator on or before the last day of the following month." SECTION II. Section 5.08.020 of the E1 Segundo Munici- pal Code is hereby amended as follows: 115.08.020 BUSINESSES GENERALLY. Every person engaged in a business not spe- cifically mentioned or classified in this chapter shall pay a license fee in accordance with the following schedule: (a) A basic fee of one hundred and three dollars ($103) per year, which shall cover the first five (5) employees and one hundred twenty seven dollars ($127) per year for each employee in excess of five employees; and (b) In addition, each such person shall pay a fee of $0.25 per square foot of floor area occupied for a business purpose in excess of 5,000 square feet. A fee of $0.10 per square foot shall be imposed on vacant space avail- able for rent or lease for business purposes, said fee to be payable by the person with the right to possession of the property; and -3- rvw/ORD130003 (c) In addition, each such person shall pay $11.00 per year for each additional business location within the city. (d) Notwithstanding the foregoing, a credit shall be granted against the tax imposed by this section whenever a business subject to the tax imposed by this chapter generates sales and /or use tax in the year immediately preceding the year in which the tax is due. The credit shall be applied to the business registration tax due for the following year. The credit shall be equal to fifty percent (50 %) of the portion of the sales and /or use tax generated which was awarded to the City of E1 Segundo during the twelve month period ending on the June 30th preceding the date the tax is due. However, the amount of said credit shall under no circumstances be calcu- lated to be greater than the total amount of tax due. For the purpose of this section, the term "employee" shall mean any person employed by the business; and shall include an indepen- dent contractor and persons employed by the independent contractor, unless the indepen- dent contractor and /or persons employed by the independent contractor has a valid City of E1 Segundo business license as prescribed in Chapters 5.04 and 5.08 of the E1 Segundo Municipal Code. The total number of employees for each busi- ness for purposes of this section shall be determined by averaging the total number of employees employed by each business during each of the four calendar quarters preceding the date the tax is paid. For the purpose of this section, 11floor areal) means the total floor space in terms of square footage occupied by owner, lessee or renter in a building except: 1. Elevator shafts; 2. Stairwell; 3. Courts or atrium, uncovered and open to the sky; 4. Rooms exclusively housing building operating equipment; and 5. Parking areas." SECTION III. Section 5.08.195 of the E1 Segundo Munic- ipal Code is hereby amende as follows: 115.08.195 CHEMICAL, PETROLEUM, CEMENT OR CRYOGENIC PRODUCTS; SMELTERS OR REFINERIES. Every person owning or operating a business engaged in the processing or manufacturing of chemical, petroleum, cement or cryogenic products; and every person owning or opera- ting a business engaged in smelting or refin- ing shall pay a business license fee in accordance with the following schedule: -4- rvw/ORD130003 (a) A basic fee of one hundred and three dollars ($103) per year which shall cover the first five (5) employees; (b) $127 per year for each employee in excess of five (5) employees; (c) $1,531 per year per square acre of space owned, leased or rented for the purpose of producing, manufacturing or processing chemi- cal, petroleum, cement or cryogenic products; or for the purpose of smelting or refining; (d) $36 per year for each vehicle in excess of six thousand pounds (gross vehicle weight) owned or operated in the conduct of the busi- ness; (e) $11 per year for each additional busi- ness location within the city. (f) Notwithstanding the foregoing, a credit shall be granted against the tax imposed by this section whenever a business subject to the tax imposed by this chapter generates sales and /or use tax in the year immediately preceding the year in which the tax is due. The credit shall be applied to the business registration tax due for the following year. The credit shall be equal to fifty percent (50 %) of the portion of the sales and /or use tax generated which was awarded to the City of E1 Segundo during the twelve month period ending on the June 30th preceding the date the tax is due. However, the amount of said credit shall under no circumstances be calcu- lated to be greater than the total amount of tax due." SECTION IV. Section 5.08.665 of the E1 Segundo Munici- pal Code is amended as follows: "5.08.665 WAREHOUSES. Every person engaged in the business of oper- ating a warehouse or storage facility shall pay a license fee of one hundred and three dollars per year plus fourteen cents per square foot of space used for such purpose for each business location within the city." SECTION V. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitu- tional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance or any part thereof. The E1 Segundo City Coun- cil hereby declares that it would have passed each and every section, subsection, subdivision, paragraph, sentence, clause, or phrase, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unconstitutional. Provided, however, that if the effect of any such decision is to effec- tively invalidate any tax imposed herein then the business license tax which was in effect prior to the passage of this ordinance shall be reinstated in its entirety effective as of the effective date of this ordinance. -5- rvw/ORD130003 SECTION VI. This ordinance shall become effective on December 31, 1991. All amounts affected by this ordinance which are due and payable to the City thereafter shall be calculated pursuant to the provisions of this ordinance. SECTION VII. The City Clerk shall certify to the passage and adoption of this ordinance; shall cause the same to be entered in the book of original ordinances of said city; shall make a minute of the passage and adoption thereof in the records of the meeting at which the same is passed and adopted and shall within 15 days after the passage or adoption thereof, cause the same to be published in the E1 Segundo Herald, the weekly news- paper of general circulation, published and circulated within said City of El Segundo and which is hereby designated for that purpose or posted in conformance with the law. 1991. PASSED, APPROVED AND ADOPTED this 4th day of JUNE ATTEST: CITY CLERK CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF EL SEGUNDO ) I, Ronald L. Hart , City Clerk of the City of EL SEGUNDO, do hereby certify that the foregoing Ordinance No. 1164 was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the 18th day of MAY , 1991. That thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on 4th day of JUNE , 1991, by the following vote, to wit: AYES: COUNCILMEMBERS : JACOBSON, DANNEN, WISE, CLUTTER, WEST NOES: COUNCILMEMBERS : NONE ABSENT: COUNCILMEMBERS NONE CITY 6LERK -6- rvw /ORD130003 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Ronald L. Hart, City Clerk of the City of El Segundo, California, DO HEREBY CERTIFY that the whole number of members of the City Council of the said City is five; that the foregoing ordinance, being Ordinance No. 1164 is a full, true correct original of Ordinance No. 1164 of the said City of El Segundo, California, entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO AMENDING SECTIONS 3.24.030, 3.24.035, 3.24.040, 3.24.050, 5.08.020, 5.08.195 AND 5.08.665 OF THE EL SEGUNDO MUNICIPAL CODE REGARDING MUNICIPAL REVENUE SOURCES which was duly passed and adopted by the said City Council, approved and signed by the Mayor or said City, and attested by the City Clerk of said City, all at a regular meeting of the said Council held on the 4th day of June, 1991, and the same was so passed and adopted by the following vote: AYES: Councilmembers Dannen, Clutter, West, Wise and Mayor Jacobsen NOES: None ABSTENTIONS: None I do hereby further certify that pursuant to the provisions of Section 36933 of the Government Code of the State of California, that the foregoing Ordinance No. 1164 was duly and regularly published according to law and the order of the City Council of said City of El Segundo Herald, a weekly newspaper of general circulation, printed, published and circulated within said City and that the same was so published therein on the following day, to wit: Ronald L. Hatt City Clerk of the City of El Segundo, California (SEAL)