CC SR 20200616 E - Business License Tax Refund
CITY COUNCIL MEETING DATE: 06/16/2020
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to expand the Small Business Financial Assistance
Plan.
RECOMMENDED COUNCIL ACTION:
(1) Adopt Resolution No. 2020- __, AMENDING RESOLUTION NO. 2020-15
AUTHORIZING AND APPROVING A ONE-TIME ONLY REFUND IN THE
REQUIRED BUSINESS LICENSE TAXES COLLECTED FROM CERTAIN
DEFINED SMALL BUSINESSES IN RESPONSE TO THE COVID-19 LOCAL
EMERGENCY AND IN IMPLEMENTATION OF CITY COUNCIL RESOLUTION
NO. 2020-11.
FISCAL IMPACT: Reduction of business license tax revenue for an amount not to
exceed $65,000.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Vina Ramos, Interim Deputy Director of Finance
REVIEWED BY: Trang Nguyen, Director of Finance
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Resolution 2020-_ (page A-1)
BACKGROUND AND DISCUSSION:
On April 7, 2020, the City Council adopted Resolution No. 2020-15 establishing a Small
Business Financial Assistance Plan that provides, among other things, a one-time
business license tax refund for certain defined small businesses affected by the COVID-
19 pandemic. The eligibility requirements for the business license tax refund include
small businesses that provide retail, food and other similar services to the community
from a physical (“brick-and-mortar”) location in the City. Additionally, the required gross
(sales) receipts must be less than $1.5 million in 2019.
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On June 2, 2020, the City Council received a status report on the Small Business
Financial Assistance Plan. As a result of the low response, the City Council expressed a
desire to increase the number of eligible small businesses by striking out “brick-and-
mortar” from the definition so that “small business” is defined as any business located
within the geographic boundaries of the City that generates less than $1.5 million in
2019 gross receipts. The City Council directed Staff to come back with a resolution that
would implement this change. Attached for the City Council’s consideration is a
resolution that amends Section 2.4 of Resolution 2020-15, as follows:
4) to be eligible for a refund, a “small business” shall be defined as a “brick-and-
mortar” business located within the geographic boundaries of the City of Rancho
Palos Verdes that generated less than $1.5 million in 2019 gross receipts.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative action is available for
the City Council’s consideration:
1. Do not adopt the revised resolution, thereby maintaining the definition of a
small business for this program to include “brick and mortar”
establishments.
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01203.0001/636842.2
RESOLUTION NO. 2020-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES, CALIFORNIA, AMENDING
RESOLUTION NO. 2020-15 AUTHORIZING AND
APPROVING A ONE-TIME ONLY REDUCTION IN THE
REQUIRED BUSINESS LICENSE TAXES COLLECTED
FROM CERTAIN DEFINED SMALL BUSINESSES IN
RESPONSE TO THE COVID-19 LOCAL EMERGENCY AND
IN IMPLEMENTATION OF CITY COUNCIL RESOLUTION
NO. 2020-11
WHEREAS, in December 2019, an outbreak of respiratory illness due to a novel
coronavirus (a disease now known as COVID-19) was first identified in Wuhan City, Hubei
Province, China; and,
WHEREAS, COVID-19 is a respiratory disease that may result in serious illness
or death and is easily transmissible from person to person, and according to the federal
Centers for Disease Control and Prevention (“CDC”) as of March 29, 2020 there are over
120,000 confirmed cases of COVID-19 in the United States and over 2,100 deaths due
to COVID-19 in the United States; and
WHEREAS, on March 4, 2020, the Governor declared the existence of a state of
emergency in the State of California due to the threat posed by COVID-19; and
WHEREAS, on March 11, 2020, the Director-General for the World Health
Organization declared that COVID-19 can be characterized as a “pandemic”; and
WHEREAS, on March 13, 2020, the President of the United States declared that
the outbreak of COVID-19 in the United States constitutes a national emergency; and
WHEREAS, on March 14, 2020, the Governor issued Executive Order N-25-20,
which ordered that “[a]ll residents are to heed any orders and guidance of state and local
public health officials, including, but not limited to the imposition of social distancing
measures, to control the spread of COVID-19”; and
WHEREAS, on March 17, 2020, the Rancho Palos Verdes City Council through
Resolution No. 2020-11, proclaimed the existence of a local emergency, and confirmed
and ratified the proclamation by the Director of the existence of a local emergency in
response to COVID-19; and
WHEREAS, on March 18, 2020, the Los Angeles County Emergency Services
Director further issued a Countywide Shelter at Home Order and Regulation No. 4 for the
County of Los Angeles (“County”) that took effect on Thursday, March 19, 2020 at 5:00
p.m., and that was further amended and ratified by the County Health Officer on March
21, 2020; and
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Resolution No. 2020-XX
Page 2 of 5
WHEREAS, on March 19, 2020, the Governor issued Executive Order N-33-20,
including the Order of the State Public Health Officer mandating all individuals living in
the State of California to stay home or at their place of residence except as needed to
maintain continuity of operations of the federal critical infrastructure sectors, as outlined
at https://www.cisa.gov/identifying-critical-infrastructure-during-covid-19; and
WHEREAS, the Governor, the State Public Health Officer, the Los Angeles County
Emergency Services Director, and the Los Angeles County Health Officer have
promulgated and issued, and will reasonably continue to promulgate and issue, various
orders, rules and regulations concerning the COVID-19 state of emergency that are
applicable within the jurisdiction of the City of Rancho Palos Verdes (“Orders”), pursuant
to State and County law, including but not limited to the California Emergency Services
Act (Gov. Code §§ 8550, et seq.) and the California Public Health & Safety Code §§
101029, 120155, 120275, 120295; and
WHEREAS, in a short period of time, COVID-19 has rapidly spread throughout
California, the County of Los Angeles, and the City of Rancho Palos Verdes, necessitating
stringent public health emergency orders as well as guidance from federal, state and local
authorities; and
WHEREAS, the COVID-19 pandemic continues to spread rapidly within California,
the County of Los Angeles, and the City of Rancho Palos Verdes, continues to present
an immediate and significant risk to public health and safety, and can result in serious
illness or death, especially to vulnerable populations, including the elderly and those with
underlying health conditions; and
WHEREAS, heightened levels of public health and safety planning and
preparedness have been necessitated in preparation for and response to confirmed
cases of COVID-19 in the County of Los Angeles, and rapid response not lending itself
to otherwise applicable notice and approval timelines has been and will be necessary to
respond to the rapidly evolving pandemic and to mitigate against the spread of COVID-
19 and its resulting public health and safety impacts; and
WHEREAS, one of the many effects of the COVID-19 pandemic and the various
state, county, and local declarations of local emergency, and the implementing orders
flowing therefrom, is the economic distress that may be experienced by local businesses,
particularly those not included in the 16 critical infrastructure sectors defined by PPD-21;
and
WHEREAS, Californians in 16 critical sectors are to continue working. The 16
critical infrastructure sectors, as defined by Presidential Policy Directive 21 (PPD-21) are
defined as those whose assets, systems, and networks, whether physical or virtual, are
considered so vital to the United States that their incapacitation or destruction would have
a debilitating effect on security, national economic security, national public health or
safety, or any combination thereof; and
A-2
Resolution No. 2020-XX
Page 3 of 5
WHEREAS, examples of these essential services include pharmacies, grocery
stores, takeout and delivery restaurants, and banks to name a few. While a portion of the
City’s business community falls within this category, there are a substantial amount that
have been negatively impacted by the mandated closures, as they do not meet the
definition of “critical infrastructure sectors”; and
WHEREAS, the courts have consistently recognized that actions to respond to an
epidemic are “designed to promote the public interests, as opposed to the furtherance of
the advantage of individuals” and that “[s]uch a determination of a public purpose is
peculiarly the function of the Legislature, not of the courts”;
WHEREAS, on April 7, 2020, the City Council adopted Resolution No. 2020-15
establishing a Small Business Financial Assistance Plan that provides, among other
things, a one-time business license tax refund for certain defined small businesses
affected by the COVID-19 pandemic;
WHEREAS, on June 2, 2020, the City Council received a status report on the Small
Business Financial Assistance Plan, and as a result of the low response, expressed a
desire to increase the number of eligible small businesses by striki ng out “brick-and-
mortar” from the definition so that “small business” is any business located within the
geographic boundaries of the City that generates less than $1.5 million in 2019 gross
receipts; and,
WHEREAS, in order to provide relief from such economic distress, to promote the
general welfare of the City’s small business community, the provision of Municipal Code,
Chapter 5.04, that apply to the taxes administered by the City of Rancho Palos Verdes
shall be adjusted, on a one-time basis, as provided hereinafter so as to afford a Business
License Tax refund to businesses that experience negative financial impacts as a result
of COVID-19.
NOW, THEREFORE, THE RANCHO PALOS VERDES CITY COUNCIL HEREBY
RESOLVES, AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct and are incorporated
herein as the findings of the City Council and the factual and legal predicate for the actions
taken hereinafter.
SECTION 2. In order to mitigate the adverse impacts of the foregoing declarations
of emergency, and implementing orders, during the pendency of such emergency on the
“small businesses,” as defined hereinafter, located with the geographic boundaries of the
City of Rancho Palos Verdes, the Director of Emergency Services, acting by and through
the Interim Finance Director, is hereby authorized and ordered to undertake the following
tasks:
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Resolution No. 2020-XX
Page 4 of 5
(1) upon request by a “small business,” as defined hereinafter, refund the
Business License Tax amounts paid for their Calendar Year 2020 Business License Tax
pursuant to Rancho Palos Verdes Municipal Code, Chapter 5.04; and
(2) in order to affect such refund an impacted “small businesses” must request
such, in writing, and provide following information:
• Short statement on the reason for the refund request
• Business name
• Contact information
• Proof of payment of the Calendar Year 2020 Business License Tax
(3) following a review of the information provided, issue, as warranted, and upon
compliance with the following sections of this resolution, a refund for any payment of
business license tax so evidenced; and
(4) to be eligible for such refund, a “small business” shall be defined as business
located within the geographic boundaries of the City of Rancho Palos Verdes that
generated less than $1.5 million in 2019 gross receipts.
SECTION 3. No refund of an overpayment of taxes imposed by Rancho Palos
Municipal Code, Chapter 5.04, shall be allowed in whole or in part unless a claim for
refund is filed with the City within a period of one year from the last day of the calendar
month following the period for which the overpayment was made, and all such claims for
refund of the amount of the overpayment must be filed with the City on forms furnished
by him and in the manner prescribed by him.
SECTION 4. Upon the filing of a claim for refund the City’s Director of Emergency
Services, acting by and through the Interim Finance Director, shall determine the eligibility
of any small business for the one-time refund provided herein. Upon such a
determination, the Director of Administrative Services shall authorize the issuance of such
one-time refund.
SECTION 5. This Resolution shall take effect immediately upon adoption of a
majority of the entire membership of the Rancho Palos Verdes City Council at a duly
convened virtual City Council meeting.
SECTION 6. The City Clerk shall certify to the passage and adoption of this
resolution.
A-4
Resolution No. 2020-XX
Page 5 of 5
PASSED, APPROVED and ADOPTED on this 16th day of June, 2020.
_______________________________
John Cruikshank, Mayor
Attest:
__________________________
Emily Colborn, City Clerk
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, Emily Colborn, City Clerk of the City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2020-__ was duly and regularly passed and adopted by the said
City Council at a regular meeting thereof held on June 16, 2020.
________________________
Emily Colborn, City Clerk
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