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HomeMy WebLinkAbout510 - Ordinances ORDINANCE NO. 510 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO ~, CALIFORNIA, AMENDING TITLE 3 OF THE RANC~O C13CAMDNGA MUNICIPAL CODE BY ADDING A NEW CHAPTER 3.48 PERTAINING TO THE ESTABLISHM~I~T OF UTIT.TTY USER'S FRF~ A. Recitals. "(i) The City of Rancho Cucamonga is a 'public corporation, of the State of California. As a 'public' corporation the City of Rancho Cucamonga is obligated to construct, maintain and administer, for the health, welfare and safety of its citizens, all public property (streets, parks, etc.) and public services (police, fire, etc.). Unlike a 'private, corporation which, in a poor econc~y, may simply reduce production or property ownership, the City of Rancho Cucamonga always must operate and provide basic services. Accordingly, the City of Rancho Cucamonga, as with all public corporations, requires a st3_ble and constant revenue source for those basic public services which must be provided. "(ii) With the recent weak econcmy, the State of California has acted to balance the State ~_dget by reducing allocations to municipalities. Such state actions have reduced long standing and stable revenue sources frce property taxes and state fund subventions (i.e., cigarette tax, fines and forfeitures, trailor coach fees, etc.) Accordingly, the ability of the City of Rancho Cucamonga to provide long range basic services has now been jeopardized. (iii) Until such time as the State of California acts to permanently return such revenue sources to municipalities, including the City of Rancho Cucamonga, this Council finds that it is immediately necessary for the maintenance of basic public services for the health, safety and welfare of the residents of the City of Rancho Cucamonga that the following ordinance be adopted. ,, B. Ordinance. The City COuncil of the City of Rancho Cucamonga does ordain as follows: Section 1. Title 3 of the Rancho Cucamonga Municipal Code is hereby amended by adding a new Chapter 3.48 to be read, in words and figures, as follows: 3.48.010 Title. This Chapter shall be known as the Utility User's Fee of the City of Rancho Cucamonga. 3.48.020 Definitions. The following words and phrases, whenever used in this Chapter, shall be construed as follows: A. "Person" shall mean any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, trust, society, or individuals. B. "City" shall mean the City of Rancho Cucamonga. Ordinance No. 510 Page 2 C. "Gas" shall mean natural or manufactured gas or any alternate hydrocarbon fuel which may be substituted therefor. D. "Telephone Corporation, ,, "Electrical Corporation," "Gas Corporation," and '~qater Corporation," shall have the same meanings as defined in Sections 234, 218, 222, and 241, respectively, of the California Public Utilities Code except, "Electrical Corporation,",,,Gas Corporation,,, and '~qater Corporation- shall also be construed to include any municipality, public agency engaged in the selling or supplying of electrical power or gas or water to a service user. E. "Finance Director" shall mean the Director of Administrative Services, or his or her designee, of the City of Rancho Cucamonga. F. "Service Supplier" shall mean any entity required to collect or self- impose and remit a fee as in~ by this Chapter. G. "Service User" shall mean person required to pay a fee imposed by this Chapter. H. '~4onth" shall mean a calendar month. I. "Non-utility Supplier" shall mean: (a) a service supplier, other than an electrical corporation franchised to serve within the City, which g~nerates electrical energy in capacities of at least 50 kilow~tte for its own use or for sale to others; or (b) a gas supplier other than a gas corporation franchised to serve the city, that sells or supplies gas for its own use or for sale to others within the City. 3v-48.030 Exemptions. Nothing in this Chapter shall be construed as imposing a fee upon any person when inpDsition of such fee upon that person would be in violation of California statute, the Constitution of the State of California, or the Constitution of the United States. A. 1. The fee imposed by this chapter shall not apply to any service user that uses electric,gas, water or telephone services in or upon any residence occupied by such service user when the combined total gross incc~e (as used for purpmses of the California personal ~ tax law) of all members of the household in which such service user resided was less than the current amount est~_blished for San Bernardino/Riverside Counties by the United States Department of Housing and Urban Development for very low income families for the applicable family size for the calendar year prior to the fiscal year (July 1st through June 30th) and for which an application for exemption as provided in this chapter is sought. 2. The fee Lmposed by this ChatYcer shall not apply to the State of California, any county or city or any district or political subdivision thereof. Ordinance No. 510 Page 3 3. Tne exemption granted by subparagraph A.1. above this section shall not eliminate the duty of the service supplier from collecting fees frcm such exempt service users or the duty of such exempt service users frc~ paying such fees to the service supplier unless an exemption is applied for by the service user and granted in accordance with the provisions of subsection (B) of this section. (B) . 1. Any service user exempt frc~n the fees imposed by this chapter because of the provisions of misection (A) of this section may file an application with the Finance Direr for an exemption. Such applications shall be made upon forms supplied by the Finance Director and shall recite facts under oath which qualify the applicant for an exemption. Tne Finance Director shall review all such applications and certify as exempt those applicants determined to qualify therefor, and shall notify all service suppliers affected that such exemption has been approved, stating the name of the applicant, the address to which such exempt service is being supplied, and such other information as may be necessary for the service supplier to remove th~ exempt service user frce its fee billing procedure. Upon receipt of such notice, the service supplier shall not be required to continue to bill any further fee imposed by this chapter from such exempt service user until further notice by the Finance Director is given. The service supplier shall eliminate such exempt service user from its fee billing procedure no later than sixty days after receipt of such notice from the Finance Direr. 2. All exemptions shall continue and be renewed autcmatically by the Finance Director so long as the requisite facts supporting the initial qualification for exemption shall continue; provided, however, that the exemption shall automatically terminate with any change in the service address or residence of the exempt service user; further provided such service user may, nevertheless, apply for a new exemption with each change of address or residence. 3. Any service user exen~t from the tax shall notify the Finance Director within ten days of any charge in fact or circumstance which might disqualify such service user from receiving such exemption. It shall be a misdemeanor for any service user to knowingly receive the benefits of the exemptions provided by this section when the basis for such ex~Jtion either does not exist or ceases to exist. C. Notwithstanding any of the provisions of this section, however, any service supplier who determines by any means that a new or non-exempt service user is receiving service through a meter or connection exempt by virtue of an exemption issued to a previous user or exempt user of the same meter or connection, such service supplier shall notify the Finance Director of such fact and the Finance Director shall conduct an investigation to ascertain whether or not the provisions of this section have been complied with, and, where appropriate, order the service supplier to cc~nence collecting the fee from the non-exempt service user. Ordinance No. 510 Page 4 3.48.035 Maximum Annual Fee. A. The maximum aggregate amount of fees imposed by this Chapter upon any one service user for utilities during any calendar year shall not exceed Fifty Thousand Dollars ($50,000.00). B. To qualify for such maximum aggregate payment, a service user shall subnit an application to the Finance Director, together with sufficient evidence demonstrating payment exceeding the maximum aggregate artrant provided in this section. Upon receipt and acceptaxx~ of such application, the Finance Director shall notify each service supplier not to impose the utility fees required by this Chapter upon such service user. Such accepted and approved service user shall remit the maximum aggregate utility user fee directly to the City of Rarr_ho Cucamonga in a form and in irstallment amounts, consistent with the rules and regulations adopted by the Finance Director. C. Any service user who has been approved and accepted to pay the maximum aggregate amount that, pays more than the maximum aggregate fee provided herein during one calendar year may claim a refund or credit for such overpayment as provided in this Chapter. D. Consistent with the rules and regulations adopted by the Finance Director, the maximum .aggregate amount specified in subsection A, above, may be adjusted annually in relation to the Consumer Price Index issued by the United States Department of T ah0r for the greater San Bernardino area. 3.48.040 Telephone User's Fee. A. There is hereby imposed a fee on the amounts paid for any intrastate telephone services by every person in the City using such services. The fee imposed by this Section shall be at the rate of 4.66 percent of the char~es made for such services, and shall be paid by the person paying for such services. B. As used in this Section, the term "charges,, shall not include charges for services paid for by inserting coins in coin-operated telephones, except that where such coin-operated service is furnished for a guaranteed amount, the amounts paid under such guarantee, plus any fixed monthly or other periodic charge, shall be included in the base for computing the amount of fee due; nor shall the term "charges', include charges for any type of service or equipment furnished by a service supplier subject to Public Utilities C~tu~,~ssion regulations during any period in which the same or similar services or equipment are also available for sale or lease fr~n persons other than a service supplier subject to Public Utilities Cammission regulations; nor shall the words "telephone cu~utunication services" include land mobile service or maritime mobile services as defined in Section 2.1 of Title 47 of the COde of Federal Regulations, as said Section existed on January 1, 1970. The term "telephone cu~.~unication services', refers to that service which provides access to a telephone system and the privilege of telephone quality cex,,~unication with substantially all persons having tele[hone stations which are part of such telephone system. The Telephone user's fee is intended to, and does, apply to all charges billed to a telephone account having a situs in the City, irrespective of whether a particular cu,a.unication originates and/or terminates within the City. Ordinance No. 510 Page 5 C. The fee imposed by this Section shall be collected from the service user by the person providing the intrastate telephone ccnmunication services, or the person receiving payment for such services. Tne amount of the fee collected in one month shall be remitted to the Finance Director on or before the last day of the following month; or at the option of the person requ/red to collect and remit the fee, an estimated amount of fee collected, measured by the fee bill in the previous month, shall be remitted to the Finance Director on or before the last day of each month. D. Nothwithstanding the provision of Sklksection (a) , the fee imposed under this Section shall not be in~ upon any person for using intrastate telephone c~unication services to the extent that the amounts paid for such services are exempt frcm or not subject to the tax im~ under Division 2, Part 20, of the California Revenue and Taxation Code, of the tax imposed under Section 4251 of the Internal Revenue Code. 3.48.050 Electricity User's Fee. A. There is hereby imposed a fee upon every person using electrical eneq3y in the City. The fee imposed by this Section shall be at the rate of 4.66 percent of the charges made for such enezxgy by an electrical corporation providing service in the City and shall be paid by the person using the energy. The fee applicable to electrical ~ provided by a non-utility supplier shall be determirad by applying the fee rate to the equivalent charge the service user would have incurred if the energy used had been provided by the electrical corporation frarr3Lised by the City. Non-utility suppliers shall install and maintain an appropriate utility-type matering system which will enable c~mpliance with this Section. "Charges,,, as used in this Section, shall include charges made for: (1) metered energy and (2) m/nizum charges for service, includ/ng custceer charges, service charges, demand charges, standby charges, and all other annual and monthly charges, fuel or other cost adjustments authorized by the California Public Utilities Ccmnission or the Federal Energy Regulatory Con.~dssion. B. As used in this Section, the term "using electrical ~,, shall not be construed to mean the storage of such ~ by a person in a battery owned or possessed by him for use in an automobile or other machinery 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 corporation or gove~ental agency at a point within the City of Rancho Cucamor~a for resale; nor shall the term include the use of such energy in the production or distribution of water by a water utility or a governmental agency. C. The fee imposed in this Section shall be collected frcan the service user by the energy service supplier or non-utility supplier. The tax imposed in this Section on use supplied by self-generation or from a non-utility supplier not subject to the jurisdiction of this Chapter, shall be collected and remitted to the Finance D/rector in the manner set forth in Section Ordinance No. 510 Page 6 3.48.080. The amount of fee collected by a service supplier or a non-utility supplier in one month shall be remitted by United States mail to the Finance Director, postmarked on or before the last day of the foll~ing month, or at the option of the person required to collect and remit the fee, an estimated amount of fee measured by the fee billed in the previous month, or based upon the payment pattern of the custcm~rs. 3.48.055 Tax on Co~enerated Electricity A. Notwithstanding the rats provisions in Section 3.48.050 of this ordinance, the fee imposed on every person using cogenerated electrical energy in the City shall be at the rats of four and sixty-six one hundredths percent (4.66%) of the value of the cogenerated electrical ~ consumed in the City. Cogenerated electricity shall be valued at the electric utility supplier's cembLned "Avoided Cost Energy Pricing and Avoided Cost Capacity Pricing" which is filed with the California Public Utilities C~,L,~ssion. B. The cogenerator shall install and maintain an appropriats metering system which will enable c~liance with this section. C. The fee shall be collected and paid by the ccgenerator under section 3.48.065 if the cogenerator consumes the energy. If the congenerator sells the emergy for consumption in the City, the fee will be imposed on the d%arges made for such service and shall be collected and paid by the person to whc~ the energy is sold. 3.48.060. Gas User's Fee. A. There is hereby imposed a fee upon every person in the City, other than a gas corporation or electrical corporation, using gas, in the City which is transported through mains or pipes or by mobile transport. The fee imposed by this Section shall be at the rats of 4.66 percent of the charges made for the gas and shall be paid by the person using the gas. The fee applicable to gas or gas transportation provided by non-utility suppliers shall be determined by applying the fee rats to the equivalent charges the service user would have incurred if the gas or gas transportation had been provided by the gas corporation franchised by the City. "Charges" as used in this Section, shall include: (1) the charge for gas which is delivered through mains or pipes or mobile transport; (2) gas transportation c~arges; and (3) demand charges, services charges, customer charges, minimum charges, annual and monthly charges, and any other authorized by the California Public Utilities C~,.~dssion or the Federal Energy Regulatory C~.:dssion. B. The fee otherwise imposed by this Section is not applicable to: (1) charges made for g~s which is to be resold and delivered through mains and pipes; (2) dlarges made for gas used and consumed by a public utility or govel~-ntal agency in the cc~duct of its business; or (3) charges made by a gas public utility or gas used and consumed in the course of its public utility business; or (4) charges made for gas used in the propulsion of a motor vehicle, as authorized in the Vehicle Code of the Stats of California. Ordinan~ No. 510 Page 7 C. The fee imposed in this Section shall be collected from the service user by the person selling or transporting the gas. A person selling only transportation services of gas to a service user for delivery of gas through mains or pipes shall collect the fee from the service user based on the cost of transporting the gas. The person selling or transporting the gas shall, on or before the last day of each calendar month, ccammncing on the 20th day of the calerxtmr month after the effective date of this Chapter, make a report to the Finance Direr stating the amount of fees billed during the preceding calendar month. At the time such reports are filed, the person selling or transporting the gas shall remit fee payments to the Finance Director in accordance with schedules established or approved by the Finance Director. The fee imposed in this Section on use supplied by self-production or a non- utility supplier not subject to the jurisdiction of this Ordinance, shall be collected by and remitted to the Finance Director in the time and manner set forth in Section 3.48.080. 3.48.065 Service Users Receivinq Direct Purcha~inq of Gas, Electricity or Telephone Service. A. Notwithstanding any other provision of this O~, a service user receiving gas, electricity, or telephone service directly from a non-utility supplier not under the jurisdiction of this Ordinance, or otherwise not having the full fee due on the use of gas, electricity, or telephone service in the City directly billed and collected by the service supplier, shall report said fact to the Finance Director within 30 days of said use and shall directly remit to the City the amount of fee due. B. The Finance Director my require said service user to provide, subject to audit, filed tax returns or other satisfactory evidence documenting the quantity of gas, electricity, or telephone service used and the price thereof. 3.48.070 Water User's Tax. A. There is hereby imposed a fee upon every person in the City using water which is delivered through mains or pipes. The fee imposed by this Section shall be at the rate of 4.66 percent of the char~ee made for such water and shall be paid by the person paying for such B. There shall be excluded frc~n the base on which the fee ir~ in this Section is coated, charges made for water which is to be resold and delivered through mains or pipes; and char~ee made by a municipal water department, public utility, or a city or municipal water district for water used and consumed by such department, utility, or district. C. Tne fee imposed in this Section shall be collected from the service user by the person supplying the water. The amount collected in one month shall be remitted to the Finance Director on or before the last day of the following month. 3.48.075 Exemption for Enerqy Produced by Fuel Cells Notwithstanding any other provision of this ordinance, no tax shall be Lmposed on the use of energy produced through the use of fuel cell technology. Ordinance No. 510 Page 8 3.48.080. Fee Collection - Procadlr~. The duty to collect and remit the fees imposed by this ordinance shall be performed as follows: A. The fee shall be collected, insofar as practicable, at the same time as, and along with, the chargee made in accordance with the regular billing practices of the service supplier. Where the amount paid by a service user to a service supplier is less than the full amount of the energy charge and fee which has been accrued for the billing period, such amount and any subsequent payments by a service user shall be applied to the utility charge first until such charge has been fully satisfied. Any remaining balance shall be applied to fees due. B. The duty to collect fees from a service user shall ccmmBnce with the beginning of the first full regular billing period applicable to the service user where all charges normally included in such regular billing are subject to the provisions of this ordinance. C. Where a person receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing period. 3.48,090. Delinquent Payments--Interest and Penalty. A. Fees collected frc~ a service user which are not remitted to the Finance Direr on or before the due dates provided in this chapter are delinquent. B. Penalties for delinquenc~ in remittance of the fee collected, or any deficiency determination, shall attach and be paid by the person required to collect and remit at the rate of fifteen percent of the total fee collected or C. The Finance Director shall have power to impose additional penalties upon persons required to collect and remit fees under the provisions of this chapter for fraud or negligenc~ in reporting or remitting at the rate of fifteen percent of the amount of the fee collected or as reccm~uted by the Finance Director. D. Every penalty in~ under the provisions of this chapter shall become a part of the fee required to be remitted. 3.48,100. Fee Deemed Debt to City--Collection. Any fee required to be paid by a service user under the provisions of this chapter shall be deemed a debt owed by the service user to the City. Any such fee collected from a service user which ha.~ willfully been withheld frc~n the Finance Director shall be deemed a debt owed to the City by the person required to collect and remit. Any person owing money to the City under the provisions of this chapter shall be liable to an action brought in the name of the City for the reoovery of such amount. 3.48,110. ~]ministration and Enforcement--Finar~e___ Director Authority A. The Finance Director shall have the power and duty, and is hereby directed, to enforce each and all of the provisions of this Chapter. Ordinance No. 510 Page 9 B. Tne Finance Director shall have the power to adopt rules and regulations not inconsistent with provisions of this Chapter for the purpose of carrying out and enforcing the payment, collection, and remittance of the fees herein imposed. C. The Finance Director may make administrative agreements to v-ury the requirements of this Chapter so that collection of any fee imposed here may be made in conformance with the billing procedures of the particular service supplier so long as said agreements result in collection of the fee in confo~ with the general purpose and scope of this Chapter. D. The Finance Director shall determine the eligibility of any person who asserts a right to exemption from the fee imposed by this Chapter. The F~ Director shall provide the service supplier with the name of any person who the Finance Director determines is exempt from the fee imposed hereby, together with the address to which service is supplied to any such exeapt person. The Finance Director shall notify the service supplier of termination of any person's right to exemption hereunder, or the change of any address to which service is supplied to any exempt person. E. The Finance Direr shall provide written notice to all service suppliers of any change in the City's boundaries at least 90 days prior to any annexation or other change in the City's boundaries. Said notice shall set forth the revised boundaries by streee and address along with a copy of the final annexation order from LAFOD. 3.48.120. Failure to Remit--Assessment and Administrative Rem~B_i~n A. The Finance Director may make an assessment for fees not remitted by a person required to remit. B. Whenever the Finance Director determines that a service user has deliberately withheld the amount of the fee owed by him from the eunounts remitted to the service supplier who is required to collect the fee, or that a service user ba-~ refused to pay the amount of fee to such person, or whenever the F/nance Director deems it in the best interest of the City, he or she may relieve such person of the obligation to collect fees due under this ordinance from cel-tain named service users for specified billing periods. C. The service supplier shall provide the City with amounts refused, along with the names, and addresses of the service users refusing to pay the fee imposed under provision of this ordinance. Whenever the service user ban failed to pay the amount of fee for a period of two or more billing periods, the service supplier shall be relieved of the obligation to collect fees due. D. The Finance Director shall notify the service user that he has assumed responsibility to collect the fees due for the stated periods and denk3r~ payment of such fees. The notice shall be served on the service user by handing it to him personally or by deposit of the notice in the United States mail, postage prepaid thereon, addressed to the service user at the address to which billing W'dS made by the person required to collect the fee; or, should the service user have changed his address, to his last known Ordii3rreNo. 510 Page 10 address. If a service user fails to remit the fee to the Finance Director within fifteen days from the date of the service of the notice upon him, which shall be the date of mailing if service is not acconplished in person, a penalty of twenty-five percent of the amount of the fee set forth in the notice shall be imposed, but not less than five dollars. The penalty shall bec~me part of the fee herein required to be paid. 3.48,130. Recordkeepinq Rec~rements It shall be the duty of every person required to collect and remit to the City any fee imposed by this ordinance to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such fee as he may have been liable for the remittance to the Finance Director, which records the Finance Director shall have the right to inspect at all reasonable times. 3.48.140. Refunds Authorized When--Procedlr~ A. Whenever the amount of any fee has been overpaid or paid more than once, or has been erroneously or illegally collected or received by the Finance D/rector under this ordinance it may be refunded by the Finance D/rector as provided in subsections B and C of this section, provided a claim in writing, therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the FinarEs Direr within one year of the date of overpayment. The claim shall be on forms furnished by the Finance D/rector. B. A service supplier may claim a refund or take as credit against fees collected and remitted an amount overpaid, paid more than once or erroneously or illegally collected or received, when it is established that the person from whom the fee has been collected did not owe the fee. C. Any service user may obtain a refund of fees overpaid, or paid more than once, or erroneously or illegally collected or received by the City Finance D/rector, by filing a claim in the manner provided in subsection A of this section, hut only when the service user having paid the fee to the service supplier establishes to the satisfaction of the Finance Director that the service user ha.~ been unable to obtain a refund from the service supplier who collected the fee. D. Notwithstanding other provisions of this section, whenever a service supplier, pursuant to an order of the California Public Utilities C~,~dssion or a court of competent jurisdiction, makes a refund to service users of charges for past utility services, the fees paid pursuant to this ordinance on the amount of such refunded charges shall also be refunded to service users, and the service supplier shall be entitled to claim a credit for such refunded fees against the amount of fee which is due upon the next monthly returns. In the event this ordinance is repealed, the amounts of any refundable fees will be borne by the City. Section 2. This Ordinance shall become effective immediately upon adoption pursuant to the provisions of California Gove~-,-~nt Code Section 36937. The fee imposed under this Ordinance shall apply to changes appearing on bills rendered on or after July 1, 1993. C~ No. 510 subclivisicn, paragraph, sentence, clause, cr ~hrase thereof ~ve of the fact that any ~ ~r ~ ~¢~ci~, su~acti~, ~~i~, para~ra~, i~ ~ at 1~ ~ ~ ~ ~ v~lq ~ly ~1~, a ~ of ~ c~~m ~1~ ~ ~ ci~ of ~io, ~~, ~ PAS~, APPROV~D, and ADOP11~) this 7th day of April, 1993. AYES: Alexander, Buquet, Stout, Williams NOES: Gutierrez I, D~RRA J. ADAMS, CITY CLERK of the City of Pancho O_~_wr~mcnga, passed pursuant to Govt. Code Section 36937 at a re~ meetin~ of the City Council of the City of Pancho Cucamonga held cn the 7th day of April, 1993. ENmcuted tb { -~ 8th day of April, 1993, at ~ O___wr~er~ga, California. · |De/xn J. City Clerk