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1972/01/10 City Council MinutesROHNERT PARK CITY COUNCIL MINUTES January 10, 1972 The Council of the City of Rohnert Park met this date in adjourned session commencing at 7:05 p.m. in the City Offices 435 Southwest Boulevard, Rohnert Park, with Mayor Hopkins presiding. Roll Call Present: (4) Councilmen Buchanan, Flores, Smith and Hopkins Late: (1) Councilman Roberts Absent: (0) None Staff Present for all or part of the meeting: City Manager Callinan, Assistant to the City Manager Albright, and City Attorney Maxwell New Golf Pro- City Manager Callinan announced that the Council had select - William Ross ed Mr. William Ross from the final five applicants for the position of golf pro and summarized the proposed agreement with Mr. Ross. Councilman Roberts Councilman Roberts arrived at approximately 7:07 p.m. while Arrival City Manager Callinan was summarizing the golf pro's agree- ment. Resolution No.. RESOLUTION AUTHORIZING AND APPROVING AGREEMENT WITH GOLF 72 -04 PROFESSIONAL WILLIAM ROSS City Manager Callinan summarized the resolution. Upon motion of Councilman Buchanan, seconded by Councilman Flores, and unanimously approved, the reading of Resolution No. 72 -04 was waived and said resolution was adopted. Ordinance No. 164 AN ORDINANCE LICENSING THE TRANSACTION AND CARRYING ON OF CERTAIN BUSINESSES, TRADES, PROFESSIONS, CALLINGS AND OCCU- PATIONS IN THE CITY OF ROHNERT PARK FOR THE PURPOSE OF RAISING MUNICIPAL REVENUE AND PROVIDING A PENALTY FOR THE VIOLATION THEREOF. Work Session on Mayor Hopkins announced that he would require all comments Proposed Business during the work session on the proposed Business License License Ordinance Ordinance to be restricted to the proposal under consider- ation. City Manager Callinan commented that the present business license had been adopted in 1963 and discussed at the time the proposed 1971 -72 budget was presented to the Council; said budget contained a recommendation that the business license should be reviewed and the rates adjusted. He re- ported that less than 50% of the business license revenues come from businesses within the city. He noted that it had been questioned why the ordinance was introduced in December. He explained that it had been proposed for intro- Page -2- January 10, 1972 duction earlier, but the Presidential Wage and Price Freeze had come along and the city had been advised by the Internal Revenue Service that business taxes could not be increased. During Phase II the city was again advised by Internal Revenu Cic ice that rates could not 'lie increased. On December 8 Deputy City Attorney Mawson had advised that in his opinion the rates could be revised. Mr. Callinan explained that the proposed ordinance was modeled after the City of Sonoma ordinance and fees were based on the number of employees rather than gross receipts, which is the most generally used method, since it was felt that a gross receipts tax would not be acceptable in R ohnert Park. Mr. Callinan reviewed comments received by telephone from business licenseesas follows: Mr. Ken Cummings suggested a $300 maximum fee for con- tractors rather than $500 as proposed.. The $100 rate for each professional was too high. Dr. Don Davis' Office had asked what his proposed fee would be. Empire Tractor indicated that $100-150 would be an acceptable tax rather than the $295 proposed. A.B. Dick indicated that $60 would be a reasonable fee rather than $175 proposed. Pat's Dance Academy indicated that $25-30 would be an acceptable fee rather than the $40 proposed. Morton's.Statewide Concrete indicated that $55 was too high; $23 was paid in Santa Rosa by his firm. Western Card/Fairway Press had inquired what the proposed fee would be and when told $70 indicated it would be dis- cussed. -nd that no business l—ense was Mr. Bob it arr,* s- had indicate that - � . -- required for apartment owners in either Santa Rosa or Ukiah. Mr. Branscomb of North Bay Tractor had indicated $100 seemed high for five employees. Mr. Hansman of Las Casitas Mobile Home Park had indicated that any significant increase in fees would have to be passed on to residents of the park who are mostly retired. He indicated $50 would. be a reasonable fee. Mrs. Curley of Redwood Estates Mobile Home Park had voiced strong objections upon learning that the fee for Page -3- January 10, 1972 197 spaces would be $419 under the proposed ordinance. She indicated that $50 was more reasonable and acceptable. Councilman Flores advised that he had received a phone call froma resident and businessman who read a letter to him which apparently was mailed to local firms, that indi- cated the City Council was trying to railroad this ordinance through. Councilman Roberts stated that he was the only Councilman who had voted no on introduction of the ordinance and that he had done so because he felt a work session should be held first, not that the ordinance should not be revamped. Maurice Fredericks was recognized and advised that his law firm is now paying $25 per year and would have to pay $300 under the proposed ordinance. He further advised that he was part of the loosely organized opposition to the proposed ordinance and that several spokesmen would be loosely repre- senting various groups. He indicated that the business license tax should have some relationship to services given. Mr. Ken Cummings, Chamber of Commerce President, was recog- nized and commented that he felt there should not be any business license tax in Rohnert Park since the city is trying to grow. He also commented, as a contractor, that if every supplier; sub - contractor, etc. involved in residential build- ing had to pay a significantly higher business license tax that the increased costs would have to be passed on to the home buyer. Mr. Ian McDonald of Cal -Wood Door commented he thought it should be a good selling point to new industries and business• es coming in that Rohnert Park had the lowest business license tax in Sonoma County. Mr. Leonard Stewart, Apartment Management and Maintenance CO., 3000 Cleveland Avenue, Santa Rosa, was recognized, com- mented that there were no special provisions in the proposed ordinance for student housing apartments and sought and received clarification of several portions of the proposed ordinance as it applied to his firm. Mr. Jack Eddinger, Manager of the Rohnert Park Exchange Hank and Vice President of the Chamber of Commerce, was re- cognized, advised he was speaking on behalf of the Rohnert Park merchants and questioned if there were any specific services provided for merchants not provided to residents of the community. He commented that the City of Sonoma has the lowest revenue in the county from business licenses because the fees discourage businesses. He advised that Rohnert Park businessmen were willing to pay a reasonable tax but could not see the rationale for increasing the business license tax. City Manager Callinan responded that each tax cannot be justified on the services provided or the whole tax philosphy would be out. Page -4- January 10, 1972 Mr. Louis Beary, businessman and resident, was recognized and advised that he was basically against the proposed tax increase because (1) the working man would have to absorb the increase; (2) it would weaken the competitive position for attracting businesses to the city; (0) it would weaken the competitive position of businesses already in Rohnert Park; and (4) he was opposed to the rationale that would use the City of Sonoma as a model. Mr. Harold Heers, businessman and resident, was recognized, advised that he was not against charging his profession (contractor and developer) $500 a year but was categorically against business license taxes as a whole and felt it was a very poor way to raise revenue; that business creates sales tax, jobs and a tax base that no other segment of the commun- ity creates and as a growing community should encourage all business to come in. Mr. Jim Groom, developer of industrial and commercial 'Land in Rohnert Park, was recognized, commented that businesses should probably pay a small business license to regulate and keep track of various businesses; that lots of businesses should come into Rohnert Park in the next few years, but it is difficult to bring them in at this time and the difficulty should not be increased, that the city has an extremely small sales tax revenue but that it should rise as proposed shoppinj centers develop; he suggested that a committee be appointed to study the business license tax and make a recommendation. Mr. Maurice Fredericks was recognized and strongly urged eli- minating the business license tax and suggested that instead of the .City Manager, City Council, City Attorney and the clerk spending an evening trying to work out a way to increase the business license tax that the time should be spent in working out ways to reduce the budget. Mr. Gordon Adam, 7259 Adrian Drive, was recognized and com- mented that he pays approximately 10 times as much property tax on his business as on his home and feels that businesses should receive more city services than residences without increasing; business license taxes. Mr. Paul Golis, Rohnert Park Realty, was recognized and stated ht-' had hoped by this time Rohnert Park would not have any property tax or business license but instead they had gone higher. He agreed with Mr. Groom that a committee should be appointed to study the need. He commented that it might be well to use the City of Sonoma salary scale for Councilmen as well as the business license ordinance. Mr. Richard Day, attorney and resident, was recognized and expressed opposition to increased business license taxes advising that more commercial services were needed in Rohnert Park to generate sales tax revenue since Rohnert Park is the lowest in the county. Page -5- January 10, 1972 Mr. Bill Lyiach, operator of the Coca Cola franchise in Marin and Sonoma Counties, was recognized and advised he was will- ing to pay his fair share of tax but it appeared from the proposed business license ordinance that he would be taxed in four different categories. A representative of Anson and Krutcher, Accountants for Gates Acoustinet, was recognized and stated the proposed ordinance should be clarified and made as equitable as possible. Mr. Bart Mitchell, real estate broker and resident, was recognized, and advised he believed that sales tax revenue should be generated and to do this new businesses should be brought in. He suggested the matter be tabled until after the overpass is in and new businesses have located here, then perhaps the business license tax could be eliminated. Councilman Buchanan stated he would like to see all those present join the Chamber of Commerce. Chamber of Commerce President Cummings offered the services of the Chamber to meet with a study committee or whatever might be helpful to the City Council in working out a recom- mendation. Mayor Hopkins sought the direction of the Council in pro- ceeding. City Attorney Maxwell reminddd that the Council had indicated it would only have a work session on the proposed ordinance and would not take any action toward adopting the ordinance but since it was an adjourned session other action could be taken. Discussion followed concerning business licenses that would be only regulatory in nature rather than for revenue raising X purposes. City Attorney Maxwell advised that the existing business license ordinance is a revenue .raising measure, that many businesses are state licensed and the city has no authority to regulate them. Councilman Flores made a motion, seconded by Councilman Roberts, to table consideration of the proposed business license ordinance, Ordinance No. 164, indefinitely. Councilman Flores stated for the record that he felt busi- nesses were paying their fair share now; that only approxi- mately $11,000 would be raised by enacting the proposed ordinance and that much good will from the business community would be lost if the ordinance were enacted. Discussion followed. Page -6- January 10, 1972 Councilman Flores motion was approved by the following roll call vote: AYES: (5) Councilmen Buchanan, Flores, Roberts, Smith and Hopkins NOES: (0) None Councilman Smith volunteered to serve on a study committee of the business license tax with the Chamber of Commerce if a cross section of citizens who are not chamber members or -merchants in Rohnert Park could participate. It was announced that anyone who was interested in serving on a business license study committee should indicate same in writing to Mayor Hopkins. Adjournment Mayor Hopkins adjourned the meeting at approximately 9:05 P-r! " De uty C1 e t APPROVED: