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Home My WebLink About07/07/1992, 4 - ISSUANCE OF SOLICITOR PERMITS IIIIi�►Rllllylllllll�l�llulll "J f MEETING AT p►►�u►I �� o san �a�s o'B�spo NIZO COUNCIL AGENDA REPORT ITEM NUMBER: FROM: William C. Statler, Director of Financed Prepared by: Linda Asprion, Revenue Managerd*�L SUBJECT: ISSUANCE OF SOLICITOR PERMITS �/�/ CAO RECOMMENDATION A. Adopt revised ordinance allowing Council to delegate issuance of solicitor permits. B. Adopt a resolution establishing the Police Department as Council 's designee to issue solicitor permits, and establishing non-refundable fees for processing the solicitor application for a permit. DISCUSSION Background In October 1991, Council adopted a revised business tax ordinance and revisions to the Municipal Code regulating businesses within the City. This revision clearly defined the business tax ordinance as non-regulatory and established regulatory permitting processes to be performed by the appropriate Department. The Community Development and Police Departments are most often involved in ensuring businesses have the appropriate permits and are properly regulated. Several types of businesses are subject to these regulatory provisions and permitting processes for a variety of reasons, i.e. zoning, signs, parking, criminal history, etc. Included in these businesses requiring permits are solicitors. Solicitors, however, are currently the only type of business required to come before Council to receive a permit. This method of regulating solicitors is cumbersome, inefficient, and does not address the regulatory concern of criminal history. As such, it is proposed that this regulatory process be modified to allow the appropriate Department to handle the permitting process of solicitors. Additionally, the Municipal code requires a non-refundable application fee for the solicitor permit. This non-refundable fee is to be established as an amount sufficient to fully defray administrative costs incurred in the processing of the permit. Currently there is no fee established for this permitting process. However, staff has determined the administrative cost involved in issuing a solicitor permit and is now bringing recommended non- refundable fees to Council for approval. ��►►��u�UiillllllllP° ��U�ll city of San t; osispo COUNCIL AGENDA REPORT Who Should Issue the Regulatory Permit? The intent of establishing an application process for solicitors is to address the regulatory concern of criminal background of solicitors who will be going door to door and the potential for consumer fraud. As such, the Police Department is appropriate to serve as the Council 's designee in issuing solicitor permits. If through this application process the Police Department finds that a solicitor should not be operating within the City, a permit will not be issued which will preclude the solicitor from obtaining a business tax certificate. The Police Department is currently working with the City Attorney's Office to establish administrative procedures for reviewing and processing solicitor applications. The administrative procedures require a preliminary investigation consisting of: j ■ A local criminal history profile. ■ Contact with law enforcement agencies in other locations where the person has solicited orders. I ■ Contact with the references listed on the application. ■ Contact with the Better Business Bureau. Depending on the results of the preliminary investigation the Police Department may require fingerprinting and criminal history reports from the State or Federal Bureau of Investigation. How Much is the Non-Refundable Fee? Included in the October 1991 Council adopted ordinance was a non- refundable fee to cover the administrative cost of processing solicitor applications. However, the amount of this fee has not yet been set. Now that the administrative process has been defined and the fees from other agencies has been researched, we are now ready to recommend the amounts of the non-refundable fee. Solicitor applications for permits require researching for any criminal history of the applicant, as described above. The administrative cost involved in performing this initial investigation is $50. 00. If additional information regarding the solicitor is required (based upon the findings from the initial investigation) , there are additional costs. The cost involved for these services are $55. 00 which are fees the Police Department pays to the Department of Justice and the Federal Bureau of Investigation for additional information and for fingerprinting services. Accordingly, the non-refundable fee for a solicitor permit is recommended to be $50. 00 for an initial investigation. If supplementary information is required, the non-refundable fee is �m��i�l►►►VIIIIIIIIIII�n ��ll city of SanIs osIspo MiN COUNCIL AGENDA REPORT recommended to be $105. 00. These fees are non-refundable as the cost for the service has been incurred whether or not the permit is issued. FISCAL IMPACT By establishing the non-refundable fees at the, recommended amounts the City will be defraying all administrative costs associated with reviewing the solicitor application and issuing a solicitor permit. ALTERNATIVES There are two basic alternatives available to Council: ■ Do not approve a designee to approve and issue solicitor permits. This alternative requires each solicitor to come i before Council to request a permit and does not provide for the regulatory concern of criminal history. As such, this alternative is not recommended. ■ Council could approve a Department other than the Police Department as a designee to approve and issue solicitor permits. This alternative requires another Department to become familiar with the procedures and contacts of investigation. As such, this alternative is not recommended. i I SUMMARY Currently, Council is the only source by which solicitors can receive permits to operate a business within the City. This method is cumbersome, inefficient, and does not address the real regulatory issue of criminal history. As such, it is recommended that the Police Department be delegated as Council 's designee to review solicitor applications and to issue permits under regulatory guidelines. I ATTACHMENTS 1. Ordinance allowing Council to delegate a designee to issue solicitor permits. 2 . Resolution establishing the Police Department as Council 's designee to issue solicitor permits and establishing non- refundable fees for reviewing the solicitor application and issuing the permit. AttachmeintL .. _ ORDINANCE (1992 SERIES) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO REVISING CHAPTER 5. 16. 070 OF THE MUNICIPAL CODE RELATING TO REGULATION OF SOLICITORS WHEREAS, revision of 5. 16. 070 will allow the Council the ability to designate a City Department to be responsible for the issuance of solicitor permits; and WHEREAS, the City Council has 'held a hearing to consider the proposed changes; NOW THEREFORE BE IT ORDAINED by the City Council of the City of San Luis Obispo as follows: SECTION 1. A revised Chapter 5. 16. 070 to read as follows: 5. 16. 070 Entering upon Private Residential Property without Invitation. A. No solicitor, peddler, hawker, itinerant merchant, transient vendor, or . any other person shall enter in or upon private residential property or premises in the City without invitation or authorization of the occupant, or the occupants, or such residential premises for the purpose of soliciting orders for any and all types of real or personal property or for any type of services or disposing of or peddling or hawking the same, except upon permit from the Council o !cl`essg !e? B. "Private residential premises" means any permises in the City whereupon a person is residing or living, including but not limited to any private residence, hotel, motel, boarding house, roominghouse, apartment or multiple residential dwelling. INTRODUCED AND PASSED TO PRINT by the Council of the city of San Luis Obispo at its meeting held on the day of 1992 , on motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: Mayor Ron Dunin ATTEST: City Clerk Pam Voges APPROVED: City Admin' strat ve Officer t tt tn Dir c or of Finance Attachment RESOLUTION NO. (1992 SERIES) DELEGATING THE POLICE DEPARTMENT AS COUNCIL'S DESIGNEE AND SETTING FORTH THE AMOUNT OF NON-REFUNDABLE FEES FOR APPLICATION FOR A SOLICITOR'S PERMIT WHEREAS, Chapter 5. 16. 050 of the City of San Luis Obispo Municipal Code provides for the setting of non-refundable fees for processing an application for a solicitor' s permit; and WHEREAS, Chapter 5. 16. 070 of the City of San Luis Obispo Municipal Code provides for the City Council to delegate a designee to process the solicitor application and issue a permit; and WHEREAS, Ordinance No. was made available for public inspection and review ten days prior to a public hearing held on this matter on July 7, 1992 ; and public notice was provided fourteen (14) days prior to the public hearing; .and NOW, THEREFORE, the City Council of the City of San Luis Obispo finds and resolves that a non-refundable fee in the amount of $50. 00 (fifty) be established for an initial investigation of a solicitor wishing to obtain a permit; and that a non-refundable fee in the amount of $55. 00 (fifty-five) be established for supplementary information and fingerprinting when necessary due to preliminary findings from the initial investigation; and that the Police Department serve as the City Council 's designee to process the application and issue the permit as appropriate. Upon motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of 1992 . Mayor Ron Dunin ATTEST: City Clerk, Pam Voges APPROVED: Ci A minist ative Officer Att r Director of Finance olice Chief 5. FISCAL CRISIS UPDATE (DUNK/1113 - 10 min. ) Consideration of the State's budget crisis and its impact on the City of San Luis Obispo (continued from 6/30/92) . RECOMMENDATION: Receive an update on: 1) actions by the State Legislature relative to the State's budget. problems, and 2) staff efforts to address and plan for significant budget reductions as recommended. (Report to be distributed under separate cover. )