Friday, March 23, 2007

CONTEXT: City Council Member Michael Cunningham’s Concern about Impacts on City Revenues

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Regular Meeting
Tuesday, March 13, 2007


IX. Ordinances

A. Consideration of an Ordinance amending the City's Municipal Code Chapter 5.04.190 to amend business license exemptions for Peddlers and Solicitors. (First Reading).

Background: A citizen brought to the city’s attention a conflict between the City’s Municipal Code and State Code. Ergo, the City Council voted to approve the Ordinance amending the City’s Municipal Code by removing 5.04.190 C. 1 and 2 to be consistent with California State Code (see Reference below).

During the City Council deliberations, City Councilman Michael Cunningham stated, as follows:

“Is there enough of a fiscal impact that we need to consider it...if we have to plan for a loss in revenue from enough business licenses.”

City Attorney Don Freeman: “No.”

Comments:
City Councilman Michael Cunningham has a record of voicing concerns about city revenues and the impacts of certain city council actions on city revenues. As the above example illustrates, his concern was the potential “loss in revenue” with the change in the ordinance. Similarly, City Councilman Cunningham expressed concern over the potential loss in property tax revenue to the city from City Council approvals of Mills Act Contracts to eligible owners of historic properties.

City Councilman Michael Cunningham’s concern about individual veteran vendors affecting total business license fee revenue to the city and his concern about potential Mills Act Contract property owners affecting total property tax revenue to the city should be placed in context. In 2000, under Proposition 90, the Michael J. & Judith R. Cunningham TRS transferred the base year value of their principal residence in one county, Santa Clara County, to a newly purchased residence in another county, Monterey County. This legal action allowed Mr. and Mrs. Cunningham to transfer their tax base of approximately $125,000 to Monterey County (see Reference below), a value hundreds of thousands of dollars less than the purchase price of their new residence in Carmel-by-the-Sea.

In short, City Councilman Michael Cunningham’s and Mrs. Cunningham’s action impacted city revenues as much, if not more than, any individual veteran vendor or individual potential Mills Act Contract property owner.


Reference:
APN: 090-371-040
2900 Franciscan Way, Carmel

Cunningham, Michael J. & Judith R. Cunningham TRS
2900 Franciscan Way
Carmel, CA. 93923-9216

Land $46,648
Improvement: $84,670
Net Value: $124,318
Homeowners Exemption $7,000

Appraisal Control Index
As of 1/12/2000
Transferred Tax Base from Santa Clara to Monterey County
PROP 90 Santa Clara

(Source: Monterey County Assessor's Office, Administration Building, 168 West Alisal Street, Salinas, CA 93902)


Reference:
Carmel-by-the-Sea
Municipal Code
Chapter 5.04
GENERAL LICENSING PROVISIONS*
5.04.190 Exemptions.
C. Peddlers and Solicitors.
1. No license tax for the purpose of peddling or soliciting shall be required of any honorably discharged or honorably released soldier, sailor or marine of the United States of America exempted from the payment thereof by any laws of the State of California, and who is a qualified elector of the City; provided further, that each such soldier, sailor or marine shall upon application therefor be issued such license free of cost upon presentation of a document or documents establishing this honorable discharge or honorable release from the United States Army, Navy, Coast Guard, Air Force or Marine Corps, and also upon the presentation of a certificate of a doctor of medicine licensed to practice under the laws of the State of California, certifying that such veteran is physically unable to obtain a livelihood by manual labor.

2. No license tax for this purpose of peddling or soliciting shall be required of any blind person. A blind person, within the meaning of this section, means a person having not more than 10 percent visual acuity in the better eye, with correction. Such blindness shall be certified by a licensed physician or surgeon who specializes in diseases of the eye, and who is licensed to practice in the State of California, or by the Bureau of Vocational Rehabilitation of the Department of Education of the State of California, and the exemption provided by this section shall not apply until a certificate as to such blindness shall have been furnished to the City Administrator or other designated agent of the City.

3 comments:

Anonymous said...

Does the ordinance in question only refer to street peddlars and people, as appears to be the case, or does it apply to
any honorably discharged veteran, who is unable to do manual labor no matter what retail business the veteran wishes to pursue? We see very little if any of the former in Carmel.

Anonymous said...

It is interesting to learn that Council Member Cunningham, who seems primarily interested in decreasing city expenditures (no matter the consequences) and maintaining but not necessarily increasing revenues,has been responsible for decreasing those revenues himself.
As a council member, he seems somewhat disinterested in the many facets of running our city unless he can somehow inject decreasing expenditures into the discussion. He appears to have a very narrow view of what it takes to run Carmel effectively.

VillageinForest said...

A search of California Codes displayed the following which is believed to be the reference the city was referring to when the city determined that they were required to make the City's Municipal Code consistent with the California State Code. The inference could be made that the city's orginal ordinance referred to any honorably discharged individual.

CALIFORNIA CODES
BUSINESS AND PROFESSIONS CODE
SECTION 16000-16004

16001. Every honorably discharged or honorably relieved soldier,
sailor, or marine of the United States or Confederate States who
served in the Civil War, any Indian war, the Spanish-American War, any Philippine insurrection, the Chinese Relief Expedition, the World War of 1914 and years following, or World War II, who is physically unable to obtain a livelihood by manual labor, and who is a voter of this state, may distribute circulars, and hawk, peddle, and vend any goods, wares or merchandise owned by him, except spirituous, malt, vinous, or other intoxicating liquor, without payment of any license tax or fee whatsoever, whether municipal, county or state, and the
legislative body shall issue to such soldier, sailor or marine,
without cost, a license therefor.

16001.5. Every person who was honorably discharged or honorably
relieved from the military, naval or air service of the United States
who served on or after June 27, 1950, and prior to February 1, 1955, or on or after August 5, 1964, and prior to a future date to be established by the Legislature, who is physically unable to obtain a livelihood by manual labor, and who is a resident of this state, may
distribute circulars, and hawk, peddle, and vend any goods, wares or merchandise owned by him, except spirituous, malt, or vinous, or other intoxicating liquor, without payment of any license tax or fee whatsoever, whether municipal, county or state, and the legislative
body shall issue to such person, without cost, a license therefor.