ORDINANCE 1439ORDINANCE NO. 1439
AN INITIATIVE MEASURE AMENDING EL SEGUNDO MUNICIPAL CODE
§§ 4 -2 -1, 4 -2 -3, AND 4 -2-4 AND ADDING A NEW § 4 -2-44 TO ALLOW
ANNUAL INCREASES TO THE BUSINESS LICENSE TAX TO FUND
GENERAL MUNICIPAL SERVICES, INCLUDING, WITHOUT LIMITATION,
POLICE PROTECTION AND INVESTIGATIONS, SUPPRESSION OF
GANG AND DRUG RELATED CRIMES, REMOVAL OF GRAFFITI, AND
RAPID RESPONSE TO EMERGENCIES.
The people of the city of El Segundo do hereby ordain as follows:
SECTION 1: El Segundo Municipal Code ( "ESMC ") § 4 -2 -1 is amended to read as
follows:
"4 -2 -1: FEES PAID TO CITY:
A. The amount of license fee to be paid to the City by persons commencing
or conducting any business subject to this Chapter are set forth in this
Chapter.
B. Beginning on January 1, 2011, license fees imposed in this Title will be
increased annually each January 1st on a percentage basis using the
percentage increase in the consumer price index ( "CPI ") for all urban
consumers as calculated by the United States Department of Labor,
Bureau of Labor Statistics, for the Los Angeles- Riverside - Orange County
area, all items, calculated as follows:
The most recent ten year CPI percentages are added together and
then divided by ten to derive an average ten year CPI percentage
( "ACPI "); and
2. The ACPI is multiplied by the amount of existing license fees. The
sum of that multiplication is added to the amount of the license fees
imposed by the City for the previous calendar year.
3. For purposes of this section, a "year CPI percentage" is the
percentage change in CPI based upon comparing a twelve month
period ending on March 31St with the subsequent twelve month
period ending on March 31S'. For example, and without limitation,
on January 1, 2011, the ACPI will be calculated using the ten years
of CPI percentages that include the following time periods: March
31, 2000 to March 31, 2001; March 31, 2001 to March 31, 2002;
and calculated in the same manner for the subsequent years with
the final and tenth year CPI percentage measured from March 31,
2009 to March 31, 2010.
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C. Notwithstanding any other provisions of this code, license fees imposed in
this Title will be increased by a minimum of one cent ($0.01) every two
calendar years.
SECTION 2: ESMC § 4 -2 -3 is amended to read as follows:
"4 -2 -3: TAX REDUCTION; TAX CREDIT:
A. Tax Reduction. Except for Section 4 -2 -4 and increases imposed by
Section 4- 2 -1(B), the amount of a business license tax imposed on any
business by this Title shall be reduced by ten percent (10 %) and the
remainder of such tax shall be reduced by an additional five percent (5 %).
B. Tax Credit. A business subject to the tax imposed by this Chapter is
entitled to a tax credit against the tax imposed by Section 4 -2-4 whenever
it generates sales and /or use tax in the year immediately preceding the
year in which the tax is due. The credit is applied to the business
registration tax due for the following year.
C. The tax credit referred to in Section B., above, will equal up to forty (40 %)
percent of the sales or use tax generated by the business and received by
the City during the twelve (12) month period ending on June 30 preceding
the date the tax is due.
D. Under no circumstances can the amount of the tax credit for any year be
calculated to be greater than the total amount of tax due for any year
under this Chapter."
SECTION 3: ESMC § 4- 2- 4(A)(1 -5) is amended to read as set forth below. Except as
modified, all other provisions of ESMC § 4 -2 -4 remain the same:
"4 -2 -4: BUSINESSES GENERALLY:
A. Unclassified Businesses; Fee Schedule: Every person engaged in a
business not specifically mentioned or classified in this Chapter shall pay
a license fee in accordance with the following schedule:
Employees: A basic fee of eight -eight dollars ($88.00) per year,
which shall cover the first ten (10) employees and one hundred
nine dollars ($109.00) per year for each employee in excess of ten
(10) employees; and
2. Floor Area: In addition, each such person shall pay a fee of twenty
one cents ($0.21) per square foot of floor area occupied for a
business purpose in excess of five thousand (5,000) square feet. A
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fee of nine cents ($0. 09) per square foot shall be imposed on
vacant space available 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. Additional Location: In addition, each such person shall pay nine
dollars ($9.00) per year for each additional business location within
the City.
4. Intentionally omitted.
5. Intentionally omitted."
SECTION 4: A new ESMC § 4 -2 -44 is added to read as follows:
"4 -2 -44: TAX REDUCTIONS AND SUSPENSIONS:
The city council may suspend or reduce tax rates imposed by this title by
resolution."
SECTION 5: INTERPRETATION. This Initiative must be interpreted so as to be
consistent with all federal and state laws, rules, and regulations. If any section, sub-
section, sentence, clause, phrase, part, or portion of this Initiative is held to be invalid or
unconstitutional by a final judgment of a court of competent jurisdiction, such decision
does not affect the validity of the remaining portions of this Initiative. The voters
declare that this Initiative, and each section, sub - section, sentence, clause, phrase,
part, or portion thereof, would have been adopted or passed irrespective of the fact that
any one or more sections, sub - sections, sentences, clauses, phrases, part, or portion is
found to be invalid. If any provision of this Initiative is held invalid as applied to any
person or circumstance, such invalidity does not affect any application of this Initiative
that can be given effect without the invalid application.
SECTION 6: SEVERABILITY. If any portion of this Initiative is held by a court of
competent jurisdiction to be invalid, the remainder of the initiative and the application of
such provision to other persons or circumstances shall not be affected thereby. We the
People indicate our strong desire that: (i) the City Council use its best efforts to sustain
and reenact that portion, and (ii) the City Council implement this Initiative by taking all
steps possible to cure any inadequacies or deficiencies identified by the court in a
manner consistent with the express and implied intent of this Initiative, and then
adopting or reenacting such portion as necessary or desirable to permit the planning
and development of the Project.
SECTION 7: CONSTRUCTION. This Initiative must be broadly construed in order to
achieve the purposes stated in this Initiative. It is the intent of the voters that the
provisions of this Initiative be interpreted or implemented by the City and others in a
manner that facilitates the purposes set forth in this Initiative.
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SECTION 8: ENFORCEABILITY. Repeal of any provision of the El Segundo Municipal
Code does not affect any penalty, forfeiture, or liability incurred before, or preclude
prosecution and imposition of penalties for any violation occurring before this
Ordinance's effective date. Any such repealed part will remain in full force and effect
for sustaining action or prosecuting violations occurring before the effective date of this
Ordinance.
SECTION 9: VALIDITY OF PREVIOUS CODE SECTIONS. If this entire Ordinance or
its application is deemed invalid by a court of competent jurisdiction, any repeal or
amendment of the ESMC or other city ordinance by this Ordinance will be rendered
void and cause such previous ESMC provision or other the city ordinance to remain in
full force and effect for all purposes
SECTION 10: EFFECTIVE DATE. This Initiative will enact and impose a general
tax. Accordingly, it will be submitted to a general election on April 13, 2010 for voter
approval. If a majority of voters vote in favor of this Initiative, it will become valid and
binding ten days after the date that the City Council certifies the election results in
accordance with Elections Code § 9217.
SECTION 11: The Mayor will sign this Initiative and the City Clerk will attest and
certify to the passage and adoption of this Ordinance if a majority of the voters voting in
the City's general election on April 13, 2010 approve the proposition asking whether the
voters approve this Initiative. n
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ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO l
I, Cindy Mortesen, City Clerk of the City of El Segundo, California, do hereby
certify that the foregoing Ordinance No. 1439 was duly passed and adopted by
the Electorate of the City of El Segundo at the General Municipal Election held
on April 13, 2010 by the following vote: YES: 1587; NO: 769.
Cindy Mortisen, City Clerk
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