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Item # 9
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 6, 2025
TOPIC: Business License Tax and Fee Software Services
AGENDA TITLE
Agreement with Hinderliter, de Llamas and Associates ("HdL") for Business License Tax
and Fee Software Services (Specification No. 23-165) (General Fund & Non -General
Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute an agreement with Hinderliter, de Llamas and
Associates ("HdL") to provide business license tax and fee software services in an amount
not to exceed $1,557,525, for a five-year term beginning April 15, 2025 and expiring April
14, 2030, with provisions for one 2-year extension, followed by two 1-year extensions
(Agreement No. A-2025-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The Treasury & Customer Services Division ("TCS") of the Finance and Management
Services Agency ("FMSA") is responsible for the administration, collection, and review of
the City's various business license taxes and fees. TCS currently oversees the following
tax categories, which collectively account for approximately 17% of the City's General
Fund revenue:
• Non -Regulatory Business License Tax
• Business License Tax For Cannabis Business
• Hotel Visitors Tax
• Utility Users Tax For Electric, Gas & Telecommunications Services
• Tourism Marketing Districts
All of the data and records associated to the above taxes (and related fees), in addition
to the Proactive Rental Enforcement Program ("PREP"), are stored in the City's in-house
legacy Business Tax System ("BTS"). This system began operating in 2007 and has
supported TCS operations for many years. As technology advanced, it became necessary
to update the system. City staff determined a full enhancement to the in-house system
would be more costly and time-consuming than switching to an external sytem. As such,
staff concluded that a search for an outside system would be the best path forward.
Business License Tax and Fee Software Services
May 6, 2025
Page 2
The City issued Request for Proposals (RFP) No. 23-165 on November 6, 2023, on the
City's online bid management and publication system. A summary of vendor participation
and results is as follows:
638 Vendors Notified
0 Santa Ana Vendors Notified
34 Vendors Downloaded the RFP Packet
4 Responsive Proposal Received
0 Proposals Received from Santa Ana Vendors
The City solicited proposals, opened submittals on January 31, 2024, and subsequently
evaluated the packets. Four (4) proposals were submitted by the RFP deadline, were
determined to be responsive to the specifications, and met the City's requirements. An
evaluation committee reviewed the responsive proposals and rated them according to the
criteria listed in the RFP.
Staff recommends awarding an agreement to the highest -ranked firm, Hinderliter, de
Llamas and Associates ("HdL") (Exhibit 1). The proposal submitted by HdL was found to
be the most responsive to the City's needs, offers the best value, and is appropriate for
the services requested. HdL possesses strong qualifications, experience, and solid
client references, along with a well -structured work plan that ensures a flexible and cost-
effective taxation program. Furthermore, the City already secured an agreement with
HdL for tax audit, analysis, forecasting, and reporting services. Integrating these
services with the new business tax system will enhance the City's taxation efforts,
streamline collections, and help secure all revenues owed to the City. Staff also
recommends awarding the contract for a term of up to nine years to allow sufficient time
for system implementation, user acceptance testing, and operational familiarity. This
duration will help ensure the system fully meets the City's needs without compromising
revenue collection efforts. The initial five-year term will focus on integrating the system
with other programs, resolving technical issues, and identifying opportunities for process
improvement. The optional extension period will support continued refinement and help
establish stable, efficient workflows within the division's operations.
Local Outreach Efforts
The Purchasing Division advertised this project on the City's online bid management and
publication system, which directly notified zero Santa Ana vendors. Zero vendors
downloaded the RFP and submitted a bid for consideration.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Funding is available in the FY 24-25 budget, including one-time funding for
implementation services for the new software. Funding for subsequent fiscal years will be
Business License Tax and Fee Software Services
May 6, 2025
Page 3
included in the proposed budgets for City Council consideration. The annual contract cost
is expected to be offset by revenues as the integration of these services with the new
business tax system enhances the City's taxation efforts and streamlines collections,
which will increase collections due to improved efficiency and enhanced compliance.
Fiscal
Accounting Unit —
Fund
Accounting Unit,
Amount
Year
Acct #
Description
Acct Description
2024-25
01110130-62300
General Fund
Contract Services
$300,000
Professional
2025-26
01110130-62300
General Fund
Contact Services
$256,450
Professional
2026-27
01110130-62300
General Fund
Contract Services
$138,575
Professional
2027-28
01110130-62300
General Fund
Contract Services
$138,575
Professional
2028-29
01110130-62300
General Fund
Contract Services
$138,575
Professional
2029-30*
01110130-62300
General Fund
Contract Services
$144,325
Professional
2030-31*
01110130-62300
General Fund
Contact Services
$144,325
Professional
2031-32*
01110130-62300
General Fund
Contract Services
$146,625
Professional
2032-33*
01110130-62300
General Fund
Contract Services
$150,075
Professional
Grand Total:
$1,557,525
*Denotes an extension year, not part of initial term
EXHIBIT(S)
1. Consultant Agreement for HdL
2. RFP 23-165
Submitted By: Alexander Trinidad, Acting Executive Director, Finance and Management
Services Agency
Approved By: Alvaro Nunez, City Manager
Docusign Envelope ID: 69F3BA28-FBFA-4209-91 BO-400342F73326
EXHIBIT 1
AGREEMENT FOR BUSINESS LICENSE TAX & FEE SOFTWARE PROGRAM
SERVICES BETWEEN HINDERLITER DE LLAMAS & ASSOCIATES DBA HDL
AND CITY OF SANTA ANA
THIS AGREEMENT is made and entered into on this 15th day of April, 2025 by and between
Hinderliter, de Llamas & Associates dba HdL ("Consultant"), and the City of Santa Ana, a charter
city and municipal corporation organized and existing under the Constitution and laws of the State
of California ("City").
RECITAIN
A. The City issued a Request for Proposal No. 23-165 ("RFP") by which it sought to retain a
consultant having special skill and knowledge in the field of business licensing, local
taxation, and revenue generation software program services.
B. Consultant submitted a responsive proposal that was selected by the City. Consultant
represents that Consultant is able and willing to provide such services to the City described
in the scope of work that was included in the RFP. The RFP is referenced herein as if
incorporated in full.
C. In undertaking the performance of this Agreement, Consultant represents that it is
knowledgeable in its field and that any services performed by Consultant under this
Agreement will be performed in compliance with such standards as may reasonably be
expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions hereinafter set forth, the parties agree as follows:
1. SCOPE OF SERVICES
Consultant shall perform during the term of this Agreement, the tasks and obligations
including all labor, materials, tools, equipment, and incidental customary work required to fully
and adequately complete the services described and set forth in Scope of Services - Exhibit A,
attached hereto and incorporated by reference.
2. COMPENSATION
a. City agrees to pay, and Consultant agrees to accept as total payment for its services for
City, the rates and charges identified in Compensation - Exhibit B. The total amount
to be expended during the term of this Agreement shall not exceed $1,557,525.
b. Payment by City shall be made within forty-five (45) days following receipt of proper
invoice evidencing work performed, subject to City accounting procedures. City and
Consultant agree that all payments due and owing under this Agreement shall be made
through Automated Clearing House (ACH) transfers. Consultant agrees to execute the
City's standard ACH Vendor Payment Authorization and provide required
documentation. Upon verification of the data provided, the City will be authorized to
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deposit payments directly into Consultant's account(s) with financial institutions.
Payment need not be made for work which fails to meet the standards of performance
set forth in the Recitals which may reasonably be expected by City.
3. TERM
This Agreement shall commence on the date first written above for a five (5) year term
with the option for the City to grant up to one 2-year extension followed by two 1-year extensions,
exercisable by a writing by the City Manager and the City Attorney, unless terminated earlier in
accordance with Section 15, below.
4. INDEPENDENT CONTRACTOR
Consultant shall, during the entire term of this Agreement, be construed to be an
independent Consultant and not an employee of the City. This Agreement is not intended nor shall
it be construed to create an employer -employee relationship, a joint venture relationship, or to
allow the City to exercise discretion or control over the professional manner in which Consultant
performs the services which are the subject matter of this Agreement; however, the services to be
provided by Consultant shall be provided in a manner consistent with all applicable standards and
regulations governing such services. Consultant shall pay all salaries and wages, employer's social
security taxes, unemployment insurance and similar taxes relating to employees and shall be
responsible for all applicable withholding taxes.
5. OWNERSHIP OF MATERIALS
This Agreement creates a non-exclusive and perpetual license for City to copy, use,
modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property
embodied in plans, specifications, studies, drawings, estimates, and other documents or works of
authorship fixed in any tangible medium of expression, including but not limited to, physical
drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or
caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant
shall require all subcontractors to agree in writing that City is granted a non-exclusive and
perpetual license for any Documents & Data the subcontractor prepares under this Agreement.
Consultant represents and warrants that Consultant has the legal right to license any and all
Documents & Data. Consultant makes no such representation and warranty in regard to
Documents & Data which were provided to Consultant by the City. City shall not be limited in
any way in its use of the Documents and Data at any time, provided that any such use not within
the purposes intended by this Agreement shall be at City's sole risk. This does not include any
software, programs, methodologies, or systems used in the creation of such Documents & Data,
nor does it include any drafts, notes, or internal communications prepared by Contractor in the
course of performing the Services that were not otherwise provided to City in either hardcopy or
electronic form, all of which may be protected by Contractor or others' copyrights or other
intellectual property.
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6. INSURANCE
Contractor shall procure and maintain for the duration of the contract insurance against
claims for injuries to persons or damages to property which may arise from or in connection with
the performance of the work hereunder and the results of that work by the Contractor, his agents,
representatives, employees or subcontractors.
Certificate Holder must be addressed as follows:
City of Santa Ana
Risk Management Division
20 Civic Center Plaza
Santa Ana, CA 92702
MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01
covering CGL on an "occurrence" basis, including products and completed operations,
property damage, bodily injury and personal & advertising injury with limits no less than
$1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate
limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general
aggregate limit shall be twice the required occurrence limit.
2. Cyber Liability: Insurance, with limits not less than $2,000,000 per occurrence or claim,
$2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and
obligations as is undertaken by Consultant in this agreement and shall include, but not be
limited to, claims involving security breach, system failure, data recovery, business
interruption, cyber extortion, social engineering, infringement of intellectual property,
including but not limited to infringement of copyright, trademark, trade dress, invasion of
privacy violations, information theft, damage to or destruction of electronic information,
release of private information, and alteration of electronic information. The policy shall
provide coverage for breach response costs, regulatory fines and penalties as well as credit
monitoring expenses.
3. Technology Professional Liability Errors and Omissions Insurance appropriate to the
Consultant's profession and work hereunder, with limits not less than $2,000,000 per
occurrence. Coverage shall be sufficiently broad to respond to the duties and obligations
as is undertaken by the Consultant in this agreement and shall include, but not be limited
to, claims involving security breach, system failure, data recovery, business interruption,
cyber extortion, social engineering, infringement of intellectual property, including but not
limited to infringement of copyright, trademark, trade dress, invasion of privacy violations,
information theft, damage to or destruction of electronic information, release of private
information, and alteration of electronic information. The policy shall provide coverage for
breach response costs, regulatory fines and penalties as well as credit monitoring expenses.
a. The Policy shall include, or be endorsed to include, property damage liability
coverage for damage to, alteration of, loss of, or destruction of electronic data
and/or information "property" of the Agency in the care, custody, or control of the
Consultant. If not covered under the Consultant's liability policy, such "property"
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coverage of the Agency may be endorsed onto the Consultant's Cyber Liability
Policy as covered property as follows
If the Contractor maintains broader coverage and/or higher limits than the minimums shown
above, the City requires and shall be entitled to the broader coverage and/or the higher limits
maintained by the Contractor. Any available insurance proceeds in excess of the specified
minimum limits of insurance and coverage shall be available to the City.
Additional Insured Status.
City, its City Council, its officers, officials, employees, agents, and volunteers are to be covered
as additional insureds, under Consultant's CGL, policy, with respect to any liability arising out of
work or operations performed by or on behalf of the Consultant including materials, parts, or
equipment furnished in connection with such work or operations. General liability coverage can
be provided in the form of an endorsement to the Consultant's insurance (at least as broad as ISC
Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG
20 33, or CG 20 38; and CG 2037 if a later edition is used).
Primary Coverage.
For any claims related to this contract, Consultant's insurance coverage shall be primary coverage
at least as broad as ISC CG 20 01 04 13 with respect to the City, it's City Council, its officers,
officials, employees, agents, and volunteers shall be excess of the Consultant's insurance and shall
not contribute with it.
Notice of Cancellation.
Each insurance policy required above shall provide that coverage shall not be canceled except,
with notice to the City.
Waiver of Subrogation.
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said
Consultant may acquire against the City by virtue of the payment of any loss under such insurance.
Consultant agrees to obtain any endorsement that maybe necessary to affect this waiver of
subrogation, but this provision applies regardless of whether or not the City has received a waiver
of subrogation endorsement from the insurer.
Self -Insured Retentions
Self -insured retentions must be declared to and approved by the City. The City may require the
Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses
and related investigations, claim administration, and defense expenses within the retention. The
policy language shall provide, or be endorsed to provide, that the self -insured retention may be
satisfied by either the named insured or City.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the State of California
with a current A.M. Best rating of no less than AXII, unless otherwise acceptable to City.
Claims Made Policies. If any of the required policies provide coverage on a claims -made basis:
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1. The Retroactive Date must be shown and must be before the date of the contract or the
beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5)
years after completion of the contract of work.
3. If coverage is canceled or non -renewed, and not replaced with another claims -made policy
form with a Retroactive Date prior to the contract effective date, the Consultant must purchase
"extended reporting" coverage for a minimum of five (5) years after completion of contract
work.
Verification of Coverage
Consultant shall furnish City with original Certificates of Insurance including all required
amendatory endorsements (or copies of the applicable policy language effecting coverage required
by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all
policy endorsements before work begins. However, failure to obtain the required documents prior
to the work beginning shall not waive Consultant's obligation to provide them.
City reserves the right to require complete, certified copies of all required insurance policies,
including endorsements required by these specifications, at any time.
Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the
requirements stated herein, and Consultant shall ensure that City is an additional insured on
insurance required from subcontractors.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the
risk, prior experience, insurer, coverage, or other special circumstances.
7. INDEMNIFICATION
Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers,
agents, employees, contractors, special counsel, and representatives from liability: (1) for personal
injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for
personal injury, including death, and claims for property damage, which may arise from the
negligent operations of the Contractor, its subcontractors, agents, employees, or other persons
acting on its behalf which relates to the services described in section 1 of this Agreement; and (2)
from any claim that personal injury, damages, just compensation, restitution, judicial or equitable
relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and
hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial
or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in
this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant
further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including
fees and costs for special counsel to be selected by the City, regarding any action by a third party
challenging the validity of this Agreement, or asserting that personal injury, damages, just
compensation, restitution, judicial or equitable relief due to personal or property rights arises by
reason of the terms of, or effects arising from this Agreement. City may make all reasonable
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decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing,
to the extent Contractor's services are subject to Civil Code Section 2782.8, the above indemnity
shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of,
pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor.
8. INTELLECTUAL PROPERTY INDEMNIFICATION
Consultant shall defend and indemnify the City, its officers, agents, representatives, and
employees against any and all liability, including costs, for infringement of any United States'
letters patent, trademark, or copyright infringement, including costs, contained in the work product
or documents provided by Consultant to the City pursuant to this Agreement.
9. RECORDS
Consultant shall keep records and invoices in connection with the work to be performed
under this Agreement. Consultant shall maintain complete and accurate records with respect to
the costs incurred under this Agreement and any services, expenditures, and disbursements
charged to the City for a minimum period of three (3) years, or for any longer period required by
law, from the date of final payment to Consultant under this Agreement. All such records and
invoices shall be clearly identifiable. Consultant shall allow a representative of the City to
examine, audit, and make transcripts or copies of such records and any other documents created
pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all
work, data, documents, proceedings, and activities related to this Agreement for a period of three
(3) years from the date of final payment to Consultant under this Agreement.
10. CONFIDENTIALITY
If Consultant receives from the City information which due to the nature of such
information is reasonably understood to be confidential and/or proprietary, Consultant agrees that
it shall not use or disclose such information except in the performance of this Agreement, and
further agrees to exercise the same degree of care it uses to protect its own information of like
importance, but in no event less than reasonable care. "Confidential Information" shall include all
nonpublic information. Confidential information includes not only written information, but also
information transferred orally, visually, electronically, or by other means. Confidential
information disclosed to either party by any subsidiary and/or agent of the other party is covered
by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any
information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the
Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant
without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e)
is independently developed by the Consultant without reference to information disclosed by the
City.
11. CONFLICT OF INTEREST CLAUSE
Consultant covenants that it presently has no interests and shall not have interests, direct
or indirect, which would conflict in any manner with performance of services specified under this
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Agreement.
12. NON-DISCRIMINATION
Consultant shall not discriminate because of race, color, creed, religion, sex, marital status,
sexual orientation, gender identity, gender expression, gender, medical conditions, genetic
information, or military and veteran status, age, national origin, ancestry, or disability, as defined
and prohibited by applicable law, in the recruitment, selection, teaching, training, utilization,
promotion, termination or other employment related activities or any services provided under this
Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all
applicable federal, state and local laws and regulations.
13. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and
Contractor, and supersedes any and all other agreements, oral or written, between the parties. In
the event of a conflict between the terms of this Agreement and any attachments hereto, the terms
of this Agreement shall prevail. This Agreement may not be modified except by written instrument
signed by the City and by an authorized representative of Contractor. The parties agree that any
terms or conditions of any purchase order or other instrument that are inconsistent with, or in
addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. Each
party to this Agreement acknowledges that no representations, inducements, promises or
agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any
parry, which is not embodied herein.
14. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Contractor,
Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior
written consent of the City and any such assignment, transfer, delegation or subcontract without
the City's prior written consent shall be considered null and void. Nothing in this Agreement shall
be construed to limit the City's ability to have any of the services which are the subject to this
Agreement performed by City personnel or by other Contractors retained by City.
15. TERMINATION
This Agreement may be terminated by the City upon thirty (30) days written notice of
termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant
compensation for all services performed by Consultant prior to receipt of such notice of
termination, subject to the following conditions:
a. As a condition of such payment, the Executive Director may require Consultant to
deliver to the City all work product(s) completed as of such date, and in such case
such work product shall be the property of the City unless prohibited by law, and
Consultant consents to the City's use thereof for such purposes as the City deems
appropriate.
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b. Payment need not be made for work which fails to meet the standard of
performance specified in the Recitals of this Agreement.
16. WAIVER
No waiver of breach, failure of any condition, or any right or remedy contained in or
granted by the provisions of this Agreement shall be effective unless it is in writing and signed by
the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or
remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not
similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies.
17. JURISDICTION - VENUE
This Agreement has been executed and delivered in the State of California and the validity,
interpretation, performance, and enforcement of any of the clauses of this Agreement shall be
determined and governed by the laws of the State of California. Both parties further agree that
Orange County, California, shall be the venue for any action or proceeding that may be brought or
arise out of, in connection with or by reason of this Agreement.
18. PROFESSIONAL LICENSES
Consultant shall, throughout the term of this Agreement, maintain all necessary licenses,
permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder
and required by the laws and regulations of the United States, the State of California, the City of
Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and
in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and
exemptions. Said inability shall be cause for termination of this Agreement.
19. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this Agreement
shall be in writing and shall be deemed to be properly given if delivered in person or mailed by
first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in
the manner provided in this Section, to the following persons:
To City:
City Clerk
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Fax: 714- 647-6956
With courtesy copies to:
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Executive Director,
Finance & Management Services Agency
City of Santa Ana
20 Civic Center Plaza (M-15)
P.O. Box 1988
Santa Ana, California 92702
To Contractor:
Richard Andrew Nickerson
Chief Executive Officer
Hinderliter, De Llamas & Associates
120 S. State College Boulevard, Suite 200
Brea, CA 92821
Fax: (714) 845-7364
A party may change its address by giving notice in writing to the other party. Thereafter,
any communication shall be addressed and transmitted to the new address. If sent by mail,
communication shall be effective or deemed to have been given three (3) days after it has been
deposited in the United States mail, duly registered or certified, with postage prepaid, and
addressed as set forth above. If sent by fax, communication shall be effective or deemed to have
been given twenty-four (24) hours after the time set forth on the transmission report issued by the
transmitting facsimile machine, addressed as set forth above. For purposes of calculating these
time frames, weekends, federal, state, County or City holidays shall be excluded.
20. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the
power, authority and right to bind their respective parties to each of the terms of
this Agreement, and shall indemnify City fully, including reasonable costs and
attorney's fees, for any injuries or damages to City in the event that such authority
or power is not, in fact, held by the signatory or is withdrawn.
b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully
set forth in the body of this Agreement.
[signatures on following page]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first
above written.
ATTEST:
Jennifer L. Hall
City Clerk
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
14"Y�'�" a
Andrea Garcia -Miller
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
Ne d,Trinidad(Apr3,20250832 PDT)
Alexander Trinidad
Acting Executive Director
Finance & Management Services Agency
CITY OF SANTA ANA
Alvaro Nunez
City Manager
CONSULTANT:
LSigned by:
bs�m Vows
65A507F31EBF4E7...
Name:
Title:
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EXHIBIT A
SCOPE OF WORK
LOCAL TAX SOFTWARE SOLUTION
This Agreement sets forth the terms and conditions under which Hinderliter, de Llamas &
Associates dba HdL (hereinafter referred to as "Consultant") agrees to license to the City of Santa
Ana certain hosted business license tax software and provide all other services necessary for
productive use of such software including customization / integration, user identification and
password change management, data import / export, monitoring, technical support, maintenance,
offsite or onsite training, backup and recovery, and change management (collectively, the
"Services") as further set forth and described in this Exhibit.
1. Services
1.1. Authorized Users — Consultant grants City a renewable, irrevocable, nonexclusive,
royalty -free, and worldwide right and license for any City employee, contractor, or agent,
or any other individual or entity authorized by City, (each, an "Authorized User") to access
and use the Services. Other than any limitations otherwise described herein, Authorized
Users will have no other limitations on their access to or use of the Services.
1.2. Acknowledgement of License Grant —For the purposes of 11 U.S.C. § 365(n), the parties
acknowledge and agree that this Agreement constitutes a grant of a license to City to use
intellectual property in software form, by Consultant.
1.3. Changes in Number of Authorized Users — City is entitled to increase or decrease the
initial number of Authorized Users ("Minimum Commitment"), on an as -requested basis;
provided, however, that City shall maintain the Minimum Commitment of ten (10) users
unless the parties otherwise agree to adjust the Minimum Commitment. Should City elect
to change the number of Authorized Users, Consultant shall reduce or increase Authorized
Users specified in this Exhibit and adjust the prospective Services Fees accordingly no
later than five (5) business days from City's written request.
1.4. Control and Location of Services — The method and means of providing the Services
shall be under the exclusive control, management, and supervision of Consultant, giving
due consideration to the requests of City. Cloud based storage shall be used for the
purposes of this Agreement. All permitted cloud storage shall comply with ISO/IEC 27001
- 27799 as applicable, or successor standards thereto. Except as otherwise expressly set
forth in this Exhibit, the Services (including all data storage), shall be provided solely from
within the continental United States and on computing and data storage devices residing
therein, and all such locations shall be disclosed to City annually and within thirty (30)
days of the effective date of this Agreement.
1.4. 1. Subcontractors — Consultant shall not enter into any subcontracts for the
performance of the Services, or assign or transfer any of its rights or obligations under
this Agreement, without City's prior written consent and any attempt to do so shall
be void and without further effect and shall be a material breach of this Agreement.
Consultant's use of subcontractors shall not relieve Consultant of any of its duties or
obligations under this Agreement.
1.5. Changes in Functionality — During the term of this Agreement, Consultant shall not
reduce or eliminate functionality in the Services. Where Consultant has reduced or
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eliminated functionality in the Services, City, at City's sole election and in City's sole
determination, shall: (a) have, in addition to any other rights and remedies under this
Agreement or at law, the right to immediately terminate this Agreement and be entitled to
a return of any prepaid fees; or, (b) determine the value of the reduced or eliminated
functionality and Consultant will immediately adjust the Services Fees accordingly on a
prospective basis. Where Consultant has introduced like functionality in other services,
City shall have an additional license and subscription right to use and access the new
services, at no additional charge, with the same rights, obligations, and limitations as for
the Services. Where Consultant increases functionality in the Services, such functionality
shall be provided to City without any increase in the Services Fees unless expressly
permitted as defined in Exhibit B (Pricing and Fees) Section 1.2 (Software Upgrades
and Enhancements).
1.6. No Effect of Click -Through Terms and Conditions — Where an Authorized User is
required to "click through" or otherwise accept or be made subject to any online terms and
conditions in accessing or using the Services, such terms and conditions are not binding
and shall have no force or effect as to the Services or this Agreement unless separately
agreed to in writing by the City.
1.7. Compliance with All Laws — In providing the Services, Consultant shall comply with
any and all applicable local, State and federal laws, statutes, standards, policies, and
regulations including, but not limited to, the Americans with Disabilities Act, the Stored
Communications Act, 18 U.S.C. Section 2701, et seq., Civil Code Sections 1798.80
through 1798.84, and the California Consumer Privacy Act, Civil Code Section 1798.100,
et seq.
2. Software Implementation
2.1. Development and Test Environments — In addition to production use of the Services,
City is entitled to one development / test environment for use by Authorized Users at no
additional charge during initial implementation of Services. Such non -production
environments shall have the same data storage and processing capacities as the production
environment. The test environment may be revived on an as -needed basis for major
upgrades or modifications to the Services at the City's request at an additional cost.
Consultant shall cooperate with City's requests in managing the non -production
environments such as refreshing City Data upon request. The City shall be responsible for
providing final approval to confirm the completion of User Acceptance Testing during
initial implementation, major upgrades, and modifications to the Services.
2.2. Consultant's responsibilities
2.2.1.Project Manager - Consultant will provide a project manager (PM) to guide the
software implementation process. The primary responsibility for the Consultant PM
is to ensure successful and timely completion of each step of the software
implementation schedule. The Consultant PM will work closely with the City's
designated project manager to define the software implementation schedule, identify
City needs and configure the software accordingly, validate the data conversion, and
provide user training.
2.2.2.IT Support - Consultant will provide a dedicated IT staff member to provide IT
support during the software implementation process.
2.2.3.Management Support - Consultant will assist the City in evaluating current policies
and procedures in order to enhance operational efficiency. This may include
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suggestions to redesign forms/reports, implement new processes, or adopt new
strategies for improving communication with the business community and other City
departments.
2.2.4.Training - Consultant will provide software training for City users as defined in the
fees schedule. The timing, size, content, and participants of each training session will
be determined by the Consultant's and City's PMs.
2.3. City's responsibilities
2.3.1.Project Manager - City will designate a staff member to serve as the City's project
manager (PM). This individual must be intimately involved in the daily business
processes, which the software will automate, and be empowered to make, or quickly
secure from management, decisions required for the configuration and
implementation of the software. The primary responsibility for the City PM is to
ensure that all City responsibilities during the software implementation process are
met according to the agreed upon software implementation schedule. The City PM
will be instrumental in the successful implementation of the software; working closely
with the Consultant PM to verify data conversion, review and approve reports,
establish business rules, and confirm configuration and behavior of the software.
2.3.2.IT support - City will designate an IT staff member to work with Consultant staff
throughout the software implementation process. This individual must be
knowledgeable about the City's computing environment and be authorized to access
any equipment or services required for proper access to and operation of the software.
2.4. Data Conversion - Consultant will convert the City's existing data as provided by City.
City agrees to provide its current data in a format agreed upon by Consultant and City.
Acceptable formats include Microsoft SQL Server backup file, Excel, Access, and ASCII
delimited text file. City will provide all available documentation to assist with identifying
the contents of the data files, including but not limited to file layout documentation,
database schema, and screenshots from at least five (5) sample accounts. City will provide
the data a minimum of two times during the conversion process. City understands that the
second (and any subsequent) data must be provided in the same format and layout as the
first data set. Any inconsistencies between the first and final data sets will result in a
delayed installation date and additional charges for conversion.
2.5. Schedule — The timeline for software implementation (including "Go Live") will be
collaboratively determined by Consultant's and City's designated Project Managers, and
will start upon receipt of all discovery materials.
3. Deliverables — Consultant will provide implementation and maintenance services for a
comprehensive business license tax system, capable of integrating with existing programs or
providing compatible data exports.
3.1. Phase I Deliverables — Anticipated completion and "Go Live" within twelve (12) months
following the execution of this agreement.
3. 1. 1. Transfer of all required data, as defined by the City, into the Consultant's system and
vetted by City to display correctly
3.1.2. Single Sign -On Functionality (contingent upon satisfactory security clearances as
approved by the City)
3.1.3.Configuration of Outbound electronic communications
1211802.2 Page 13 of 20
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4.
E
3.1.4.Configuration of two custom management Reconciliation Reports including but not
limited to Monthly Activity Reports. The General Ledger Summary and Detail will
be provided as one of many standard reports that we offer with our software system.
3.1.5.Configuration of Daily Data Exchange to Identify payments that were submitted
through Consultant's online service portal and through City's service centers
3.1.6.Integration with the City Cashiering, Pay, and ERP systems to report cash receipt and
GL data.
3.1.7.Integration with City's Hosted Payment Processor for Online Customer Portal
3.1.8.Establishment of a process capable of exporting records for use by collection agencies
3.2. Phase 2 Deliverables — Anticipated completion within eighteen (18) months, or as
otherwise mutually agreed to, following the completion of Phase 1.
3.2.1.Integration with the City's Land Management System (LMS) and GIS Functions
3.2.2.Migration of Proactive Rental Enforcement Program (PREP) to City's LMS
3.2.3. Integration with City's future Enterprise Resource Planning (ERP) system
3.3. Commercial Registry (Optional) — Upon City Council adoption of an authorizing
ordinance, the City may initiate a Commercial Registry through the Consultant's system
that segregates registry data from tax and licensing records. This Registry, if authorized,
will not be permitted to share information, records, data, or other elements otherwise
restricted by the City's Municipal Code or other governing statutes for the purposes of
confidentiality. The City retains the right to add or subsequently remove this Registry
without affecting the services associated to the tax and licensing system.
Software Hosting Services — Consultant's hosting services offload the majority of IT concerns
to Consultant's hosting team; including system monitoring, system upgrades, hardware and
software maintenance, database management, and disaster recovery. City will be responsible
for maintaining its workstations and a reliable internet connection to access a City specific sub -
domain on Consultant's special purpose hdlgov.com domain. Consultant will be responsible
for ensuring the ongoing operation of the designated service domain and the ability for the
public to access the domain without interruption.
Software Support
5.1. City Support - Consultant will provide City's users no charge support by telephone, email
and the web during the term of this Agreement. In the United States support is available
as follows: For customer support between the hours of 8:00 am and 5:00 pm Pacific time,
Monday through Friday, email supportghdlcompanies.com or call (909) 861-4335 and
ask for software support. For urgent off hours support before 8:00 am or after 5:00 pm
Pacific time, Monday through Friday (or anytime Saturday), email
911@hdlcompanies.com and Consultant's on call support personnel will be notified.
Please only include name, agency and contact # in emails to 911 (ghdlcompanies. com.
Requests will be contacted as soon as possible.
5. 1. 1. Maintenance — Consultant shall provide bug fixes, corrections, modifications,
enhancements, upgrades, and new releases to the Services to ensure: (a) the
functionality of the Services, as described in this Agreement, is available to
Authorized Users; (b) the functionality of the Services in accordance with the
representations and warranties set forth herein, including but not limited to, the
Services conforming in all material respects to the specifications, functions,
descriptions, standards, and criteria set forth in this Agreement; (c) the Service Level
Standards can be achieved; and, (d) the Services work with the then -current version
1211802.2
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and the three prior versions of Internet Explorer, Edge, Mozilla Firefox, Safari, and
Google Chrome Internet browsers. The Services Fees shall be inclusive of the fees
for maintenance.
5.1.2.Required Notice of Maintenance — Unless as otherwise agreed to by City on a case -
by -case basis, Consultant shall provide no less than thirty (30) calendar day's prior
written notice to City of all non -emergency maintenance to be performed on the
Services, such written notice including a detailed description of all maintenance to be
performed. For emergency maintenance, Consultant shall provide as much prior
notice as commercially practicable to City and shall provide a detailed description of
all maintenance performed no greater than one (1) calendar day following the
implementation of the emergency maintenance.
5.1.3.Acceptance of Non -Emergency Maintenance — Unless as otherwise agreed to by
City on a case -by -case basis, for non -emergency maintenance, and assuming City has
opted into consultant full test environment option, City shall have a five (5) business
day period to test any maintenance changes prior to Consultant introducing such
maintenance changes into production (the "Maintenance Acceptance Period"). In the
event that City rejects, for good cause, any maintenance changes during the
Maintenance Acceptance Period, Consultant shall not introduce such rejected
maintenance changes into production. At the end of the Maintenance Acceptance
Period, if City has not rejected the maintenance changes, the maintenance changes
shall be deemed to be accepted by City and Consultant shall be entitled to introduce
the maintenance changes into production.
5.2. Service Levels — In the event that City encounters an error and/or malfunction whereby
the software does not conform to expected behavior in accordance with the software
design, the City will assign one of the following severity levels for the Consultant to render
support services in a timely manner consistent with the urgency of the situation.
5.2. 1. Severity Level 1— a critical problem has been encountered such that the software is
deemed inoperable and without a reasonable workaround. Consultant will respond
within one (1) business hour to diagnose the problem. A response is defined as an
email or call to the City's designated support contact. Consultant and City will work
diligently and continuously to correct the problem within four (4) hours.
5.2.2.Severity Level 2 — a problem arose that does not prevent use of the software, but the
software is not operating correctly. Consultant will diagnose the problem within 24
hours and advise City of any available temporary solution within two (2) business
days. Upon Consultant's confirmation that the software is not operating correctly,
Consultant will provide a software update to repair the defect and confirm with City
that the update resolved the issue.
5.2.3.Severity Level 3 — a minor problem arose whereas the software is usable but could
be improved by correction of a defect or addition of a usability enhancement.
Consultant will assess the request within fifteen (15) business days and schedule a
software update for a future release, advise the City that the request will not be
implemented, or offer the option of implementing the request as a custom software
enhancement at an additional cost.
5.2.4.Notification to City — In the event that the Consultant identifies an error or problem,
notification will be sent to the City within one (1) business hour from the point of
discovery advising the City of the Severity Level and workarounds if necessary.
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5.3. Service Level Standards — For the term of this Agreement, Consultant shall provide the
Services, force majeure events excepted, during the applicable Service Periods and in
accordance with the applicable Service Levels, each as described in Section 5.2 (Service
Levels) of this Exhibit. Time is of the essence in the performance of the Services.
5.4. Failure to Meet Service Level Standards — In the event Consultant does not meet a
Service Level Standard, Consultant shall: (a) owe to City any applicable Performance
Credit, as liquidated damages and not as a penalty; and, (b) use its best efforts to ensure
that any unmet Service Level Standard is subsequently met. Notwithstanding the
foregoing, Consultant will use its best efforts to minimize the impact or duration of any
outage, interruption, or degradation of Service. In no case shall City be required to notify
Consultant that a Performance Credit is due as a condition of payment of the same.
5.4.1.Performance Credit — Where Percentage Response Time is greater than 95.00%, no
Performance Credit will be due to City. Where Percentage Response Time is equal to
or less than 95.00%, City shall be due a Performance Credit in the amount of 1 % of
the Services Fees (as calculated on a monthly basis for the reporting month) for each
full 1 % reduction in Percentage Response Time.
5.4.2.Termination for Material and Repeated Failures — City shall have, in addition to
any other rights and remedies under this Agreement or at law, the right to immediately
terminate this Agreement, and be entitled to a return of any prepaid fees where
Consultant fails to meet any Service Level Standard: (a) to such an extent that the
City's ability, as solely determined by City, to use the Services is materially disrupted,
force majeure events excepted; or, (b) for four (4) months out of any twelve (12)
month period.
5.5. Support Policy Regarding Reports - Consultant will assist with modifications to reports
as needed during the term of this agreement. Typical report modifications require 7 to 10
business days to complete. Complex reports or reports required in a very short time frame
may incur development costs, in which case an estimate will be provided for approval
before the work is begun.
5.6. Software Upgrades and Enhancements — City is entitled to upgrades of the software
within the terms of this Agreement that include enhancements to workflows and security
features that improve the functionality of the system. Upgrades of the software that
encompass wholly new modules or features not previously offered as part of the
implementation of software may incur additional costs depending on the extent of the
upgrade. Potential additional costs include training, consulting, configuration, or other
requested services. Enhancements requested by the City to strengthen security of the
system will not incur additional costs; however, all other requests will abide by the terms
outlined in Exhibit B (Pricing and Fees) Section 1.3 (Customizing Services).
5.7. Additional Work or Services — City shall have the right at any time during the
performance of the work or services set forth in this Agreement, without invalidating said
Agreement or any amendment thereto, to elect to exercise any existing option specified in
the Scope of Services for extra work or services or to order extra work or services pursuant
to a duly executed Change Order or to expend previously authorized contingent funds to
cover expenses for work or services agreed to by the Parties but exceeding the amounts
initially specified under the Pricing and Fees provisions of this Agreement or thereby
make changes by altering, adding to, or deducting from said work or services.
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5.7.1.Change Order — No extra work or services as set forth in the above subsection may
be undertaken unless a written "Change Order" is first given by the City to Consultant,
incorporating therein any material adjustment in the contract and/or the time to
perform this Agreement, which said adjustments are subject to the written approval
of the Consultant.
5.8. Out of Scope Support — City agrees to pay additional hourly fees according to
Consultant's stated hourly rates if the City desires Consultant's assistance for matters that
are not associated to defects in Consultant's software.
6. Online Payment Processing
6.1. Modified Payment Processing Solution — Consultant's software will direct online
payments to the City's PCI compliant payment processing services, supporting both credit
card and eCheck transactions. Processing fees that may be incurred through this model
will be added to the recurring costs billed to the City. Through this modified processing
solution, the City retains the full right, power and authority to request, receive and review
any data or records reflected in a transaction report. Any information captured through
this modified processing solution is declared sensitive and confidential and may only be
reviewed by the City or the Consultant if authorized by the City.
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EXHIBIT B
PRICING & FEES
1. Software Services
1.1. One Time Costs
Item
Price
Comments
System configuration
$33,000.00
Installation, report design, system
configuration
Finance Export
Included
Daily journal entry file export to
finances stem
Implementation
$35,000.00
Implementation project management
Data Conversion
$28,000.00
Prime Cloud API access
$16, 800.00
Phase I Customizations
$120,520.00
Covers contract items 3.1.4 - 3.1.8
Phase 2 Customizations
$82,500.00
Covers contract items 3.2.1 - 3.3
Training 2 days
Included
Additional days available at
$2,000/da
TOTAL
$315,820.00
Total one-time costs
1.1.1.Data Conversion — Fee includes two (2) conversions of City data. The first for the
pre -install environment used for testing and training, and the second at go -live.
Additional conversions can be performed, upon request, at a cost of $5,000 per
conversion. Includes up to 30 hours of developer time. Unusually complex
conversions or poor data quality may require additional effort beyond the 30 hours,
which will be charged at the developer hourly rate.
1.2. Software Upgrades and Enhancements — City is entitled to upgrades of the software
within the terms of this Agreement that include enhancements to workflows and security
features that improve the functionality of the system. Upgrades of the software that
encompass wholly new modules or features not previously offered as part of the
implementation of software may incur additional costs depending on the extent of the
upgrade. Potential additional costs include training, consulting, configuration, or other
requested services. Enhancements requested by the City to strengthen security of the
system will not incur additional costs; however, all other requests will abide by the terms
outlined in Section 1.3 Customizing Services
1.3. Customizing Services — Consultant's software is a customizable off the shelf system
(COTS) designed to meet all common needs of local governments. Should the need occur,
Consultant may provide custom enhancements to the software on a time and material
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basis. No work shall be performed without prior written approval of Consultant and City.
Consultant's current hourly rates are as follows:
• Principal - $325 / hr
• Programmer - $295 / hr
• Senior Analyst - $245 / hr
• Analyst - $195 / hr
1.4. Recurring Costs
Software Subscription Fee
$85,500
Due at Prime core system "Go Live
1'term, years I through 5
annually
and annually thereafter
Software Subscription Fee
$90,500
2nd term, years 6 and 7
annually
Software Subscription Fee
$92,500
3rd term, year 8
annually
Software Subscription Fee
$95,500
4`h term, year 9
annually
OPTIONAL COSTS
Unlicensed business lead
$75,000
Cost increases by 4% annually
service option I Lead
annually
Generation Service
Unlicensed business lead
35% of
Applies to all current and back taxes
service option 2 Compliance
recovered revenue
and penalties collected. There is no
Service
fee on future revenue from discovered
accounts. At City's option, the City
portion of recovered revenue can be
used to pay for all one-time software
ees AND custom integration costs.
Test Environment
$18,000
anuall
Commercial Registry
$10,000 (one-time)
$5 000(annuallyl
1.4. 1. Software Subscription Fee — Software Use Fee is billed annually, and provides for
use of the software by the specified number of licensed users (ten edit -level users
included), software hosting services, customer support, and updates to the software.
The Subscription Fee includes an unlimited number of read-only users and workflow
users who do not need access to the primary system. Additional edit -level user
licenses are available as follows:
• $2,000 fee peruser if more than 10 edit -level users, no maximum established
2. Pricing & Fee Adjustments — Fees not defined in Section 1 Software Services may be
increased once every fiscal year (as defined by the City, the period running from July 1st
through June 30th the following year) with reference to the 12-month percent change in the
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most recently published annual Consumer Price Index for All Urban Consumers (CPI-U), West
Region, as reported the U.S. Bureau of Labor Statistics (the "CPI Change"). Each annual
increase in the fees will be equal to the greater of two percent (2%) or the actual CPI Change,
but in no event may exceed an increase of five percent (5%). Consultant will notify the City
no less than sixty (60) days before an adjustment in pricing is to occur.
3. Payment Processing — Consultant's software will direct online payments to the City's PCI
compliant payment processing services, supporting both credit card and eCheck transactions.
All processing costs would be between the payment processor and the City.
4. Travel Expenses — Fees for travel and lodging expenses will be invoiced at cost and applied
to all meetings that are beyond the scope of this agreement. Therefore, such costs must be pre -
approved by the City.
5. Payment Schedule
5.1. Software Implementation Fees - All one-time project costs for implementing the software
service shall be paid as follows:
5.1.1.25% shall be due within 45 days of the effective date of the Agreement.
5.1.2.25% shall be due within 45 days of delivery of a configured test environment.
5.1.3.25% shall be due within 45 days of initial training of City staff.
5.1.4.Final 25% shall be due 45 days after full system delivery or first production use of
the software, whichever comes first.
5.2. Recurring Software Use Fees — The first year software use fee is due 45 days after "Go
Live", which is full system delivery or first production use of the software, whichever
comes first. Software use fees for subsequent years will be billed on the anniversary date
of "Go Live".
5.3. Custom work that was not already identified within the initial agreement will be billed
50% upon City approval of Change Order, and the remaining 50% upon delivery of the
work product. Custom work must still remain within the original agreement's Scope of
Service.
5.4. Compliance service contingency fees are billed in the month following collection of
revenue.
5.5. Any travel and lodging expenses are billed at cost as they are incurred. Such expenses
shall be due within 45 days of the billing date.
1211802.2 Page 20 of 20
Agreement with HdL for Business License
Tax Fee Software - revised - CAO signed
4-1-25(2036192.1).p
Final Audit Report 2025-04-03
Created:
2025-04-02
By:
Kristin Andrade (kandrade@santa-ana.org)
Status:
Signed
Transaction ID:
CBJCHBCAABAAiOiEbvf7 8CvHom9rifmPnxCZZS6s8vK
"Agreement with HdL for Business License Tax Fee Software - r
evised - CAO signed 4-1-25(2036192.1).p" History
&0 Document digitally presigned by DocuSign\, Inc. (enterprisesupport@docusign.com)
2025-04-01 - 9:21:14 PM GMT
! Document created by Kristin Andrade (kandrade@santa-ana.org)
2025-04-02 - 9:31:37 PM GMT
�a Document emailed to Alexander Trinidad (atrinidad@santa-ana.org) for signature
2025-04-02 - 9:32:05 PM GMT
Email viewed by Alexander Trinidad (atrinidad@santa-ana.org)
2025-04-03 - 3:21:37 PM GMT
Goo Document e-signed by Alexander Trinidad (atrinidad@santa-ana.org)
Signature Date: 2025-04-03 - 3:22:30 PM GMT - Time Source: server
ri Agreement completed.
2025-04-03 - 3:22:30 PM GMT
a Adobe Acrobat Sign
EXHIBIT 2
REQUEST FOR PROPOSALS NO. 23-165
FOR
BUSINESS LICENSE TAX & FEE SOFTWARE PROGRAM
CITY OF SANTA ANA
KEY RFP DATES: The schedule below is tentative and subject to change at the
discretion of City, with appropriate notice to prospective Proposers.
Issue Date: Monday, November 6, 2023
Mandatory Pre -Proposal Meeting: Thursday, January 11, 2024; 2:00 P.M.
Deadline for Questions: Monday, January 15, 2024; 4:00 P.M.
Proposal Due Date: Wednesday, January 31, 2024; 4:00 P.M.
w
"1 CITY OF SANTA ANA
TABLE OF CONTENTS
I.
BACKGROUND...........................................................................................................................3
II.
MANDATORY/OPTIONAL PRE -PROPOSAL MEETING.............................................................4
III.
OVERVIEW OF PROJECT..........................................................................................................5
IV.
SCOPE OF SERVICES...............................................................................................................6
V.
TERM OF AGREEMENT.............................................................................................................
6
VI.
MINIMUM QUALIFICATIONS......................................................................................................6
VII.
RESPONSE TO RFP..................................................................................................................
6
VIII.
CERTIFICATIONS (ATTACHMENTS).......................................................................................
10
IX.
REFERENCES..........................................................................................................................11
X.
MINIMUM SCOPE AND LIMIT OF INSURANCE.......................................................................
11
XI. SELECTION PROCEDURES & CRITERIA............................................................................... 14
XII. WITHDRAWALS........................................................................................................................15
XIII. GENERAL TERMS AND CONDITIONS.................................................................................... 15
XIV. AWARD OF AGREEMENT........................................................................................................ 20
XV. IMPLEMENTATION................................................................................................................... 20
EXHIBITS
Exhibits provided herein for Proposers' reference only.
EXHIBIT I — SCOPE OF SERVICES
EXHIBIT II — SAMPLE AGREEMENT
EXHIBIT III — CITY OF SANTA ANA GENERAL BUSINESS LICENSE TAXATION OVERIEW
EXHIBIT IV — CITY OF SANTA ANA MEDICAL MARIJUANA AND COMMERCIAL CANNABIS BUSINESS
LICENSE TAXATION OVERIEW
EXHIBIT V — CITY OF SANTA ANA GENERAL UTILITY USERS' TAXATION OVERIEW
EXHIBIT VI —CITY OF SANTA ANA GENERAL HOTEL VISITORS' TAXATION OVERIEW
EXHIBIT VII —CITY OF SANTA ANA GENERAL TOURISM MARKETING DISTRICT OVERIEW
EXHIBIT VIII — CITY OF SANTA ANA PROACTIVE RENTAL ENFORCEMENT PROGRAM (PREP)
EXHIBIT IX — SANTA ANA MUNICIPAL CODE — CHAPTER 21 LICENSES
EXHIBIT X — SANTA ANA MUNICIPAL CODE — CHAPTER 35 TAXATION, ARTICLE 5 HOTEL VISITORS' TAX
AND ARTICLE 6 UTILITY USERS TAX CODE
ATTACHMENTS
A PROPOSER'S CERTIFICATION, PROPOSAL ITEM PRICING
B REFERENCES
C PROPOSER'S STATEMENT
D NON -COLLUSION AFFIDAVIT
E NON -LOBBYING CERTIFICATION
F NON-DISCRIMINATION CERTIFICATION
G PROPOSERS' QUESTIONNAIRE
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I. BACKGROUND
Incorporated in 1886, Santa Ana, a Charter City, established a Council -Manager form of
government in 1952. The City Council is composed of seven members; the Mayor elected at
large and six Council members elected by ward, who appoint the City Manager, City Attorney
and Clerk of the Council. The City of Santa Ana (City) is a full -service City with a diverse
population of approximately 335,000.
The City's eleven agencies provide all the traditional municipal services, as well as water utility,
library system, 20-acre zoo, City Jail, Police Department, and contracts with the Orange County
Fire Authority for provision of fire services. The City employs 1,178 authorized full-time positions
and has an annual citywide budget is $764.2 million, including the General Fund budget of $414
million.
The City of Santa Ana is located 10 miles inland from the Pacific Ocean, 33 miles southeast of
Los Angeles and 90 miles north of San Diego. The City, which is the county seat of Orange
County, encompasses an area of approximately 27 square miles and is the 11th largest by
population in California.
Treasury & Customer Service Division: The Finance & Management Services Agency,
Treasury & Customer Service Division ("Division"), is responsible for overseeing and providing
revenue collection for a variety of City revenues, including but not limited to taxes, charges, fees,
fines, deposits and reimbursements. In support of this mission, the Division uses a mix of internal
staff, in-house custom software, external consultants/vendors to ensure that the City recovers all
revenues that are due, including but not limited to: business license taxes, medicinal and
commercial cannabis taxes, utility users' taxes, hotel visitors' taxes, tourism marketing district
assessments, business improvement district charges, and proactive rental enforcement program
("PREP") charges. These revenue programs are performed within the Division's Tax & Licensing
Section ("Tax & Licensing").
Tax & Licensing Program: In FY 2022-23, as part of the Tax & Licensing Program, the City
averaged over 30,200 active business licenses annually and collected over $16,289,000 in
general business license tax revenue, while at the same time averaging 99 medicinal and
commercial cannabis business licenses annually with combined medical marijuana and
commercial cannabis business license tax revenues of $22,280,000. A total of approximately
$38 million annually in combined business license tax revenues, was fully processed utilizing the
City's legacy business license tax software (Business Tax System or "BTS"), an internally
developed and supported Active Server Pages (ASP.NET) application.
As an adjunct to the Tax & Licensing Program, BTS also supports the Planning & Building
Agency's PREP charges, averaging 7,250 accounts and generating approximately $860,000
annually. This is currently accommodated via a BTS module handling PREP Customer Service
Information and PREP Charge Fee billing. This module is scheduled for integration with the City's
incoming Land Management System (LMS), Clariti. Lastly, in prior years, the BTS had an
integrated Downtown Business Improvement District ("BID"), which functioned as a surtax
charge and was subject to the general requirements of the Business License Tax Code and BTS
software. Presently, the City does not have an active BID, but software procured through this
RFP should be able to support such an element if it returns in the future.
In addition to business license taxes, the Tax & Licensing Section receives monthly "trust tax"
filings from 351 Utility Users' Tax (UUT) service providers generating revenues of $28,543,740
annually; plus 34 Hotel Visitors' Tax (HVT) hotel/motel operators generating revenues of
City of Santa Ana RFP No. 23-165 Page 3 of 196
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$10,477,648 annually; added together with 17 Tourism Marketing District (TMD) hotel/motel
accounts generating assessments of $1,758,004,000 annually. These filings are supported via
a corresponding set of in-house developed legacy solutions written as ASP.NET applications.
Business License Tax Program Changes: The City's Business License Tax Program is
anticipated to undergo significant changes to the underlying Business License Tax Code, last
comprehensively revised in 1987, and supplemented generally in the intervening years by a
variety of ordinance amendments and two specifically cannabis related Voter Ballot Measures in
2014 (medical marijuana) and 2018 (commercial cannabis).
In addition, a third Voter Ballot Measure (Measure W) was recently approved by Santa Ana
voters and became effective in January 2023. The measure accomplishes the following:
Restructure non -cannabis business license tax rates and charges, with the aim to
achieve an overall net revenue neutral result;
2. Implement a broad Tax Holiday Program for unlicensed, past due, and under -
assessed businesses (effective 18-month duration); and
3. Align with closely associated existing provisions of the City's Business License Tax
Code, Santa Ana Municipal Code (SAMC) Chapter 21.
For more information on Santa Ana's Measure W, please visit (https://www.santa-
ana.org/business-tax-equity-and-flexible-tax-holiday-ballot-measure/)
II. MANDATORY PRE -PROPOSAL MEETING
A mandatory virtual pre -proposal meeting will be held on the date and time specified on the
cover page of this RFP.
Failure to attend this meeting shall result in your firm being disqualified from proposing.
Registration Link https:Hzoom.us/meeting/register/tJMkduivrDkvH9UIUgNLtLGM2Du2PdICTylz
Meeting Link:
https://zoom.us/o/97911722551
Meeting ID: 979 1172 2551
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Find your local number: https://zoom.us/u/adu4z4lD4W
For virtual meetings sign in will be required with your name and company in the "Chat" box.
Please make sure you are available to do so if signing on to the meeting through your phone or
in the field.
III. OVERVIEW OF PROJECT — SUMMARY REQUIREMENTS
The City of Santa Ana (City) is seeking proposals from qualified firms and organizations
(Proposers) to provide the Finance & Management Services Agency - Treasury & Customer
Service Division with a solution, implementation and maintenance services for a comprehensive
business license software platform system, capable of integrating with existing programs.
The term "Vendor", "Proposer", and "Contractor" shall refer to any legal entity or entities
submitting a proposal in response to this Request for Proposals (RFP).
Proposers must have extensive experience in providing web -based Business Licensing Tax
Software/Platforms.
The objective of this RFP is to identify:
A robust and user-friendly web -based software system with a strong outward facing
customer e-commerce front end platform that will meet the City's current and future needs
associated with issuing, managing, and renewing business licenses and related
modules/programs;
2. A software platform that can effectively handle a variety of pre -licensing activities relating
to identified unlicensed businesses and track correspondence/contacts with such
businesses through to licensure and receipt of revenues;
3. A software program that can generate various business license and related statistical and
revenue reports, on a scheduled monthly, weekly, daily, and "on -demand" basis for
administrative and collection purposes; and
4. A software platform that can be aligned/integrated with the City's Europay, MasterCard,
and Visa (EMV) Chip and PIN Payment Card Industry Data Security Standard (PCI-DSS)
payment compliant system.
City of Santa Ana RFP No. 23-165 Page 5 of 196
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The current system used by the City is a custom -developed application created in the early
2000's and is stored within the City's internal servers. The City's intent is to acquire a
configurable, off -the -shelf software platform provided, supported, and maintained by the
Proposer.
IV. SCOPE OF SERVICES
SEE EXHIBIT I — SCOPE OF SERVICES
Usage is not guaranteed. Execution of an agreement between the City and successful firm(s)
and/or individual(s) does not guarantee work throughout the duration of the contract period.
Numerous factors will be evaluated by the City in its delivery of project and assignments,
including technical expertise required.
V. TERM OF AGREEMENT
The anticipated term of the agreement is for an initial period of five (5) years. The City may, at
its discretion, extend the agreement with the same or more limited scope of required services for
three (3) additional periods, the first for two (2) years, followed by two one (1) year optional
extensions, upon mutual agreement contingent upon City Council approval, or City Manager or
City Attorney authorization, as appropriate. The total term of the awarded agreement shall not
exceed nine (9) years.
VI. MINIMUM QUALIFICATIONS
Proposers must have a minimum of five (5) years' experience providing similar services to other
government agencies, preferably of similar size to the City of Santa Ana. Proposers must have
successfully implemented similar solutions with at least two (2) other municipalities in the most
recent past five (5) years. Proposers must have implemented a similar solution in at least one
other government agency in California, regardless of the size of the agency.
VII. RESPONSE TO RFP
A. SUBMITTAL INSTRUCTIONS
It is the responsibility of the Proposer to ensure that any proposals submitted have been
uploaded to PlanetBids prior to the RFP due date and time. Proposals, including all required
sections and forms, shall be submitted electronically via the City's Bid Management System,
PlanetBids. No other form of submittal will be accepted.
PlanetBids will not accept late proposals and no exceptions shall be made. Proposers will
receive an e-bid confirmation number with a time stamp from PlanetBids indicating that their
proposal was submitted successfully. The City will only receive and consider those proposals
that were transmitted successfully. Submit proposal online at:
http://www.planetbids.com/portal/portal.cfm?CompanvlD=20137.
Proposer shall be solely responsible for informing itself with respect to the proper utilization
of the bid management system, for ensuring the capability of their computer system to upload
the required documents, and for the stability of their internet service. Failure of the Proposer
to successfully submit an electronic proposal shall be at the Proposer's sole risk and no relief
will be given for late and/or improperly submitted proposals. Proposers experiencing any
technical difficulties with the bid submission process may contact PlanetBids at (818) 992-
City of Santa Ana RFP No. 23-165 Page 6 of 196
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1771. Questions of an operational nature may be directed to the City's assigned Buyer.
Neither the City, nor PlanetBids, makes any guarantee as to the timely availability of
assistance, or assurance that any given problem will be resolved by the bid submission
deadline.
Proposals shall NOT be sent via telegraphic, electronic, or facsimile means.
All notifications, updates and addenda will be posted online on PlanetBids at
https://www.planetbids.com/portal/portal.cfm?CompanVID=20137. Proposers shall be
responsible for monitoring the site to obtain information regarding this solicitation. Failure to
respond to required updates may result in a determination of a nonresponsive proposal.
B. COMMUNICATION / CONTACT WITH CITY STAFF
Unless otherwise authorized herein, Proposers who are considering submitting a proposal in
response to this RFP, or who submit a proposal in response to this RFP, are only to
communicate with the assigned Project Coordinator(s), and no other City staff about this RFP
from the date this RFP is issued until a contract is awarded. The City will provide all official
communication concerning this RFP in writing via the City's Bid Management System,
PlanetBids.
The City will not be responsible for or bound by any oral communication or any other
information or contact that occurs outside the official communication process specified
herein, unless confirmed in writing by the designated Project Manager(s).
C. REQUEST FOR INFORMATION OR CLARIFICATION / QUESTIONS
Questions regarding this RFP shall be submitted via PlanetBids. Responses to all questions
will be posted on PlanetBids no later than the date and time shown at the schedule of key
RFP dates on the cover page of this RFP. All prospective Proposers are advised to visit
PlanetBids on a regular basis as responses may be posted earlier than the date above (if
applicable). No verbal requests or responses will be accepted. Significant interpretations or
clarifications will be addressed via addenda to this RFP.
Significant interpretations or clarifications and responses to questions received by the
deadline will be addressed via addenda to this RFP, which will be released and posted on
PlanetBids under the "Addenda/Emails" tab.
General process questions may be directed to the following:
Jacques Lam
Buyer
Email: JLam@santa-ana.org
D. EXCEPTIONS
Requests submitted for City's consideration of proposed terms and conditions, including
modifications to the City's RFP and/or Contract terms and conditions must be submitted by
the deadline for questions. Such requests should include an attachment in Word or PDF
format on formal company letterhead that shows the requested modifications. City may reject
or strike any requests for exceptions or additional terms and conditions related to Agreement,
RFP, and insurance and indemnification terms and conditions.
E. ADDENDA
Any changes in
or amendment.
RFP from the date of release to date of submittal will result in an addendum
Notification of such addendum or amendment shall be posted on City's
City of Santa Ana RFP No. 23-165 Page 7 of 196
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PlanetBids system, https://www.planetbids.com/portal/portal.cfm?CompanylD=20137.
Proposers shall be responsible for monitoring the site to obtain information regarding this
solicitation.
F. UNDERSTANDING PROPOSAL
It is the responsibility of each Proposer to inquire about any criteria, condition, term, provision,
or requirement of the RFP that the Proposer does not understand. Responses to inquiries, if
they significantly change or clarify the RFP requirements or any aspect of the procurement
process, will be forwarded by addenda to all Proposers. The City will not be bound by any
oral responses to inquiries. By submitting proposals, Proposers assert that they have fully
read the RFP and any addenda issued by the City, the proposed Contract and any other
Contract Documents, and affirm that the terms and conditions stated therein are fully
understood and are acceptable to the Proposer. Each Proposer accepts the terms and
conditions of the Contract Documents and indicates their ability and willingness to perform
the requested services under such terms and conditions. Any exceptions to the terms and
conditions set forth in the Contract Document shall be submitted to the City by the deadline
to submit requests for information or clarification/questions set forth herein.
G. PROPOSAL CONTENTS
Proposals are to be prepared in such a way as to provide a straightforward, concise
delineation of capabilities to satisfy the requirements of this RFP. Colored displays,
promotional materials, photographs etc., are not necessary or desired. Emphasis should be
concentrated on conformance to RFP instructions, responsiveness to the RFP requirements,
and on completeness and clarity of content. Digital dividers and clear organization of content
and material are encouraged.
Statement of Qualifications (SOQ)
SOQ must include a Table of Contents and be limited to a maximum of 20 pages
(excluding City's required Certifications listed in Section VIII below; Proposal Cover
Letter, section dividers, table of contents, front/back cover pages). The page limitation
includes all appendices, attachments, and supplemental information. Additionally, SOQ
must include the following:
a. Cover Letter
Proposals shall include a letter signed by a principal or authorized representative who
can make legally binding commitments for the entity. Include type of business entity.
Cover Letter shall not exceed one page.
Cover letter must be addressed to the following City Project Manager:
Alejandra Gutierrez, City Project Manager
City of Santa Ana — Finance & Management Agency
20 Civic Center Plaza, First Floor Ross Annex (M-15)
Santa Ana, CA 92702-1964
b. Services Provided
A description of proposed services to be provided and how they meet the needs of the
City's Finance & Management Services Agency as described in Section III — Scope
City of Santa Ana RFP No. 23-165 Page 8 of 196
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of Services (Above).
c. Agreement Statement
Proposal shall include a statement outlining your concurrence or concerns with any
and all provisions as contained in EXHIBIT II — Sample Agreement of this RFP (if
any).
d. Firm and Team Experience
Proposal shall include a profile of the firm's experience including the following:
A general description of the firm, including size and number of employees
working directly with the City on this agreement.
ii. Firm's nearest address serving the City of Santa Ana and headquarters
address.
iii. Name and contact information of the supervising Project Manager/Principal
Agent, to be assigned to the agreement. The Project Manager/Principal
Agent shall be the primary contact person to represent your firm and will be
the person to conduct the presentation, if invited to an interview.
iv. Resumes for all key staff proposed describing relevant experience.
V. Provide work samples, links, and/or screenshots of similar solutions
Proposer has successfully implemented at two other similar municipal
agencies.
e. Proposed Work Plan
Proposal shall include a statement demonstrating the firm's understanding of the
Scope of Services.
Additionally, proposed work plan shall include Proposers':
i. Provide a detailed description of the Work plan, Approach, and Timeline that
you propose using to meet the objectives described in the Scope of Work.;
ii. Suggestions or special concerns the evaluation committee should take into
consideration (if any);
iii. Describe the process to be used and the deliverables to be produced
iv. Describe the staffing and time frames involved in performing each element of
the Scope of Work. Specify the level of involvement, specific tasks, and
estimated hours you will require from the City (or end -users).
f. References: Attachment B — References shall be submitted for similar projects
performed for state and/or similar government clients.
2. Cost Proposal
a. Provide a total Project Cost for the Work Plan and Timeline referenced in Section 1.e
(Proposed Work Plan). For each primary element or milestone of the Work Plan, detail
the staff required, their hourly rate, and estimated hours Proposer shall not include
rate ranges or averages.
City of Santa Ana RFP No. 23-165 Page 9 of 196
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b. Annual fee — must include all hosting options available, such as on -site hosting through
City servers and off -site hosting via public cloud tools or the vendor's datacenter.
c. Identify the key cost drivers that you expect to influence the costs of this project and
your ability to contain them.
d. Identify and itemize in the Cost Proposal and Alternate Cost Proposal:
One-time costs
Fixed, ongoing costs across a nine-year period including:
• any and all categories of license;
• integration;
• support;
• maintenance; and
• training costs
iii. Fixed rate fees for emergency support for after-hours technological assistance.
Pricing instructions should be clearly defined to ensure fees proposed can be compared
and evaluated. Cost Proposal must include a payment schedule if applicable. City
reserves the right to negotiate compensation and/or payment schedule prior to award of
any resulting agreement.
The City shall not provide reimbursement for travel -related expenses, mileage, parking,
lodging, meals, incidental fees, insurance, freight/shipping and handling/delivery, and any
other business expenses, supplies and materials related to providing services as
specified herein. Additional costs will not be considered and will not be reimbursed by the
City, therefore, such costs must be absorbed in Proposer's cost proposal fee structure.
Any language related to travel reimbursement shall be stricken from the document by the
City and if not stricken, shall be deemed invalid.
Proposals shall be valid for a minimum of one hundred eighty (180) days following
Proposal deadline. The cost for developing the Proposal is the sole responsibility of the
Proposer. All Proposals submitted become property of the City.
VIII. CERTIFICATIONS (ATTACHMENTS)
In addition to the SOQ, Narrative/Technical Proposal, and Cost Proposal, the following forms,
included in this RFP, shall be signed and included as part of the proposal submittal package:
• Attachment A:
Proposer's Certification and Proposal Item Pricing
Attachment B:
References
• Attachment C:
Proposer's Statement
• Attachment D:
Non -Collusion Affidavit
Attachment E:
Non -Lobbying Certification
Attachment F:
Non -Discrimination Certification
• Attachment G:
Proposer's Questionnaire
City of Santa Ana RFP No. 23-165 Page 10 of 196
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The proposal must be completely responsive to the RFP. Incomplete proposals will be deemed
as nonresponsive and will be rejected. The City reserves the right to reject any or all proposals
submitted and no representation is made hereby that any commitment will be awarded pursuant
to this RFP or otherwise.
PLEASE NOTE: City will not waive notarization requirement when applicable on any
of the required attachments.
IX. REFERENCES
Proposer shall provide three (3) references from other similar public agencies for which services
similar to those specified in this RFP have been performed, including contact names and
telephone numbers. Use ATTACHMENT B — References. The respondent grants permission for
the City to contact any individuals listed as references.
Additionally, Proposer shall provide contact information for two (2) municipal agencies, preferably
of similar size to the City of Santa Ana, for which Proposer has successfully implemented a similar
Business License Taxation software solution that the City may contact for site visits as part of the
evaluation process. These municipal agencies may be included as two (2) of the three (3)
references required above or in addition to the required references.
City may disqualify a Proposer if. -
References fail to substantiate Proposer's description of services and
deliverables provided; or
• References fail to support that Proposer has a continuing pattern of providing
capable, productive, and skilled personnel, or
• City is unable to reach the point of contact with reasonable effort. It is the
Proposer's responsibility to inform the point of contact(s) of normal City
working hours.
X. MINIMUM SCOPE AND LIMIT OF INSURANCE
The selected Proposer shall provide the required evidence of insurance coverage as set forth in
the standard agreement within ten (10) business days after receipt of Notice of Intent to Award.
Contractor must maintain, for the duration of its contract, insurance coverages as required by the
City.
Additionally, Contractor shall provide the following insurance coverage:
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01
covering CGL on an "occurrence" basis, including products and completed operations,
property damage, bodily injury and personal & advertising injury with limits no less than
$1,000,000 per occurrence. If a general aggregate limit applies, either the general
aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or
the general aggregate limit shall be twice the required occurrence limit.
2. Cyber Liability: Insurance, with limits not less than $2,000,000 per occurrence or claim,
$2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and
obligations as is undertaken by Vendor in this agreement and shall include, but not be
limited to, claims involving security breach, system failure, data recovery, business
interruption, cyber extortion, social engineering, infringement of intellectual property,
City of Santa Ana RFP No. 23-165 Page 11 of 196
(9)
including but not limited to infringement of copyright, trademark, trade dress, invasion of
privacy violations, information theft, damage to or destruction of electronic information,
release of private information, and alteration of electronic information. The policy shall
provide coverage for breach response costs, regulatory fines and penalties as well as credit
monitoring expenses.
■ Technology Professional Liability Errors and Omissions Insurance
appropriate to the Consultant's profession and work hereunder, with limits not
less than $2,000,000 per occurrence. Coverage shall be sufficiently broad to
respond to the duties and obligations as is undertaken by the Vendor in this
agreement and shall include, but not be limited to, claims involving security breach,
system failure, data recovery, business interruption, cyber extortion, social
engineering, infringement of intellectual property, including but not limited to
infringement of copyright, trademark, trade dress, invasion of privacy violations,
information theft, damage to or destruction of electronic information, release of
private information, and alteration of electronic information. The policy shall
provide coverage for breach response costs, regulatory fines and penalties as well
as credit monitoring expenses.
• The Policy shall include, or be endorsed to include, property damage
liability coverage for damage to, alteration of, loss of, or destruction of
electronic data and/or information "property" of the Agency in the care,
custody, or control of the Vendor. If not covered under the Vendor's
liability policy, such "property" coverage of the Agency may be endorsed
onto the Vendor's Cyber Liability Policy as covered property as follows
If the Contractor maintains broader coverage and/or higher limits than the minimums shown
above, the Entity requires and shall be entitled to the broader coverage and/or the higher limits
maintained by the Contractor. Any available insurance proceeds in excess of the specified
minimum limits of insurance and coverage shall be available to the Entity.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The Entity, its officers, officials, employees, and volunteers are to be covered as additional
insureds on the CGL policy with respect to liability arising out of work or operations performed by
or on behalf of the Contractor including materials, parts, or equipment furnished in connection
with such work or operations. General liability coverage can be provided in the form of an
endorsement to the Contractor's insurance (at least as broad as ISO Form CG 20 10 11 85 or if
not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG
20 37 if a later edition is used).
Primary Coverage
For any claims related to this contract, the Contractor's insurance coverage shall be primary
coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials,
employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers,
officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not
contribute with it.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except
with notice to the Entity.
City of Santa Ana RFP No. 23-165 Page 12 of 196
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Waiver of Subrogation
Contractor hereby grants to Entity a waiver of any right to subrogation which any insurer of said
Contractor may acquire against the Entity by virtue of the payment of any loss under such
insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this
waiver of subrogation, but this provision applies regardless of whether or not the Entity has
received a waiver of subrogation endorsement from the insurer.
Self -Insured Retentions
Self -insured retentions must be declared to and approved by the Entity. The Entity may require
the Contractor to purchase coverage with a lower retention or provide proof of ability to pay
losses and related investigations, claim administration, and defense expenses within the
retention. The policy language shall provide, or be endorsed to provide, that the self -insured
retention may be satisfied by either the named insured or Entity.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current
A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the Entity.
Claims Made Policies
If any of the required policies provide coverage on a claims -made basis:
1. The Retroactive Date must be shown and must be before the date of the contract or the
beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5)
years after completion of the contract of work.
3. If coverage is canceled or non -renewed, and not replaced with another claims -made policy
form with a Retroactive Date prior to the contract effective date, the Contractor must purchase
"extended reporting" coverage for a minimum of five (5) years after completion of contract work.
Verification of Coverage
Contractor shall furnish the Entity with original Certificates of Insurance including all required
amendatory endorsements (or copies of the applicable policy language effecting coverage
required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy
listing all policy endorsements to Entity before work begins. However, failure to obtain the required
documents prior to the work beginning shall not waive the Contractor's obligation to provide them.
The Entity reserves the right to require complete, certified copies of all required insurance policies,
including endorsements required by these specifications, at any time.
Certificate Holder must be addressed as follows:
City of Santa Ana
Risk Management Division
20 Civic Center Plaza
Santa Ana, CA 92702
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the
requirements stated herein, and Contractor shall ensure that Entity is an additional insured on
insurance required from subcontractors.
Special Risks or Circumstances
Entity reserves the right to modify these requirements, including limits, based on the nature of the
risk, prior experience, insurer, coverage, or other special circumstances
City of Santa Ana RFP No. 23-165 Page 13 of 196
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XI. SELECTION PROCEDURES & CRITERIA
A. The City will establish a proposal review committee. The review committee will evaluate
proposals based on the response to the RFP, which includes adherence to outlined directions
and format, and the City evaluation criteria set forth below.
B. Proposers will be ranked by the review committee based on the following criteria:
CATEGORY
POINTS
Responsiveness to RFP
• Proposal's compliance with the requirements of this RFP.
• Scope of Services offered including ability to provide optional services.
• The value to any new and/or innovative product or service suggestions or
40
other new ideas and enhancements.
• Proposed innovation and value-added features/offerings
Experience of Firm and Personnel
• The experience, resources, and qualifications of the firm and individuals
assigned to this account, including manager, supervisor and assigned
25
staff.
Cost of Proposal
• Reasonableness of rates and cost for development, integration, support,
25
and maintenance
References
• References that are similar in size and project scope to the City.
10
TOTAL POSSIBLE SCORE
100
C. A final score will be calculated for each submitted proposal and used to rank Proposers.
Based upon the foregoing criteria, all proposals shall be ranked by score. Only those
proposals receiving a score above 70 will be considered for award. The City reserves the
right to award the contract to any proposer(s) with a score above 70. The review committee
will evaluate proposers based on their response to the RFP and the City evaluation criteria
set forth above.
D. The City is under no obligation to accept any proposal and reserves the right to negotiate
with respondents as to fees and terms. The City may reject proposals at its sole discretion.
If proposal fails to satisfy any requirements outlined in this RFP, it may be considered non-
responsive and may be rejected.
The City shall not be obligated to accept the lowest priced proposals, but will make awards
in the best interests of the City after all factors have been evaluated.
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The review committee will recommend the qualified Proposers to the City Council or City
Manager for award of contract, as appropriate.
E. The review committee may invite the proposers to interview. The City reserves the right to
seek additional information from any or all Proposers invited to present proposals. A final
score will be calculated for each submitted proposal and used to rank Proposers. City
reserves the right to begin negotiations and enter into a contract without holding interviews,
or further discussions.
Additionally, the City reserves the right to contact references Proposer has included as
successful implementation partners and visit facilities, contact, and/or meet with municipal
agency's Project Managers as part of the evaluation process.
XII. WITHDRAWALS
Proposers are responsible for verifying all prices and information before submitting a proposal.
Prior to the proposal due date, the Proposer or Proposer's representative may withdraw the
proposal by providing written notice of the proposal withdrawal to the City Contact/Project
Manager. Verbal or telephonic withdrawals are not permissible.
XIII. GENERAL TERMS AND CONDITIONS
A. AMERICANS WITH DISABILITIES ACT
The awarded Contractor hereby certifies that it will comply, as applicable, with the Americans
with Disabilities Act of 1990 ("ADA"), 42 USC §§ 12101 et seq., and its implementing
regulations, including Subtitle A, Title II of the ADA. Contractor will not discriminate against
persons with disabilities nor against persons due to their relationship to or association with a
person with a disability. Any contract entered into by the awarded Contractor (or any
subcontract thereof), relating to this RFP, shall be subject to the provisions of this paragraph.
B. CITY BUSINESS LICENSE
The selected proposer must obtain a City of Santa Ana Business License prior to the
execution of a contract and must provide a copy to the Buyer assigned to this RFP. The
awarded party shall maintain a current business license throughout the term of the resulting
contract. Procedure to obtain a City of Santa Ana Business License is available by contacting
the Finance and Management Services, Business Tax Office at (714) 647-5447 or on the
City's website: www.santa-ana.org
C. CITY RIGHT TO REJECT
The City reserves the right to reject any or all proposals submitted and no representation is
made hereby that any agreement will be awarded pursuant to this RFP or otherwise. The
City reserves the right to accept or reject the combined or separate components of this
proposal in part or in its entirety or to waive any minor inconsistency, informality or technical
defect in the proposal.
D. CONFLICT OF INTEREST
Contractor shall exercise reasonable care and diligence to prevent any actions or conditions
that could result in a conflict with the best interests of the City. This obligation shall apply to
the Contractor; the Contractor's employees, agents, and Subcontractors associated with
accomplishing work and services hereunder. The Contractor's efforts shall include, but not
be limited to, establishing precautions to prevent its employees, agents, and Subcontractors
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from providing or offering gifts, entertainment, payments, loans or other considerations which
could be deemed to influence or appear to influence City staff or elected officers from acting
in the best interests of the City.
Each Proposer must disclose any existing or potential conflict of interest relative to the
performance of the contractual services resulting from this RFP. Any such relationship that
might be perceived or represented as a conflict should be disclosed. The City reserves the
right to disqualify any Proposer on the grounds of actual or apparent conflict of interest.
No person, firm, or subsidiary thereof who has been awarded this Contract may be awarded
a Contract for the provision of services, the delivery of supplies, or the provision of any other
related action which is required, suggested, or otherwise deemed appropriate as an end
product of this Contract. Therefore, Contractor is precluded from contracting for any work
recommended as a result of this Contract.
E. CONTRACTOR'S EXPENSE
Pre -Contractual Expenses: The City is not liable for any costs incurred by Proposers prior to
entering into a formal contract. Costs of developing a response to this RFP, are entirely the
responsibility of the Proposer, and shall not be reimbursed in any manner by the City. Pre -
contractual expenses are not to be included in the cost proposal. Pre -contractual expenses
include, but are not limited to, preparation of the proposal, submission of the proposal and
additional information, attendance at pre -proposal conference, negotiating any matter related
to this RFP with City, and/or any other expenses incurred by the Proposer prior to the date
of award and execution, if any, of the contract.
Other Expenses: The Contractor will be responsible for all costs related to photo copying,
telephone communications, fax communications, and parking while on City sites during the
performance of work and services under this Contract.
F. CONTRACTOR'S PROJECT MANAGER/KEY PERSONNEL
Except as formally approved by the City, the key personnel identified in Contractor's proposal
shall be the individuals who will actually complete the work. Changes in staffing must be
reported in writing and approved by the City. The City shall have the right to require the
removal and replacement of the Contractor's Project Manager and key personnel under the
awarded contract. The City shall notify the Contractor in writing of such action. The City is
not required to provide any reason, rationale, or additional factual information if it elects to
request any specific key personnel be removed from performing services under the awarded
contract. The City shall review and approve the appointment of the replacement for the
Contractor's personnel. Said approval shall not be unreasonably withheld.
Standards of Conduct: Contractor's personnel shall be courteous and maintain good working
relationships with all stakeholders, state or outside agencies, other team members and staff
within the City.
G. COST PROPOSAL
The awarded Contractor agrees to provide the purchased services at the costs, rates, and
fees as set forth in their Fee Schedule in response to this RFP. No other costs, rates or fees
shall be payable to the awarded Subcontractor for implementation of their proposal.
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H. DATA RETENTION
Contractor shall be responsible for retaining data, records, and documentation for the
preparation of required items. These materials shall be made available to and as requested
by City.
All materials, documents, data or information obtained from the City Data files or any City
medium furnished to Contractor in the performance of an awarded contract will at all times
remain the property of the City. Such data or information may not be used or copied for direct
or indirect use by Contractor after completion or termination of this Contract without the
express written consent of the City. All materials, documents, data or information, including
copies, must be returned to the City at the end of the contract.
All data, documents and other products used, developed, or produced during response
preparation of the RFP will become property of the City. All responses to the RFP shall
become property of the City. Proposer information identified as proprietary shall be
maintained confidential, to the extent allowed under the California Public Records Act.
I. DRUG -FREE WORKPLACE
The awarded Contractor certifies compliance with Government Code Section 8355 in matters
relating to providing a drug -free workplace. Failure to comply with these requirements may
result in suspension of payments under the Contract or termination of the contract or both,
and the Contractor may be ineligible for award of any future City contracts.
EXAMINATION
Proposer represents that it has thoroughly examined and become familiar with the services
and responsibilities required this RFP and that it is capable of effectively and efficiently
performing quality work to achieve the City's objectives. Any attachments referenced herein
or any interpretations, clarifications or amendments subsequently posted in relation to this
RFP are fully incorporated.
Any irregularities or lack of clarity in the RFP should be brought to the designated City
Contact/Project Manager's attention as soon as possible so that corrective addenda may be
furnished to prospective Proposers.
Proposals which appear unrealistic in the terms of technical commitments, lack of technical
competence, or are indicative of failure to comprehend the complexity and risk of this
contract, may be rejected.
K. EXECUTION OF AGREEMENT
Upon successful negotiations, the City and the selected Proposer will enter into an
Agreement similar to that as shown in EXHIBIT II — Sample Agreement of this RFP. If a
Proposer is unwilling or unable to execute an Agreement within thirty (30) days after being
notified of selection under this RFP, the City reserves the right to disqualify them without any
further obligation
L. FISCAL NONFUNDING CLAUSE
In the event sufficient budgeted funds are not available for a new fiscal period, the City shall
retain the right to notify the provider of such occurrence in writing at least thirty (30) days
before the end of the current fiscal period and terminate the contract on the last day of the
current fiscal period without penalty or expense to the City.
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M. JOINT OFFERS/SUBCONSULTANTS
Where two or more Proposers desire to submit a single proposal in response to this RFP,
they should do so on a prime sub -consultant basis. The City intends to contract with a single
firm, also known as the prime, and not with multiple firms doing business as a joint venture.
Should the use of sub -consultants be offered, the Proposer shall provide the same
assurances of competence for the sub -consultant plus the demonstrated ability to manage
and supervise the subcontracted work. Sub -consultants shall not be allowed to further
subcontract with others for work under the Agreement. The provisions of the Agreement shall
apply to all sub -consultants in the same manner as the Proposer. The proposer is responsible
for all the actions taken by their sub -contractor.
The City reserves the right to reject, replace and approve any and all Subcontractors. All
Subcontractor(s) shall be identified in the response to the RFP and the City reserves the right
to reject any proposed Subcontractor(s). Subcontractors shall be the responsibility of the
prime Contractor and the City shall assume no liability of such Subcontractors.
N. INDEPENDENT CONTRACTOR
Contractor is considered an independent Contractor and neither Contractor, its employees,
nor anyone working under Contractor will be considered an agent or an employee of City.
Neither Contractor, its employees, nor anyone working under Contractor, will qualify for
workers' compensation or other fringe benefits of any kind through City.
O. LITIGATION STATUS
Each Proposer must include in its proposal a complete disclosure of any alleged significant
prior or ongoing contract failures, any civil or criminal litigation or investigation pending which
involves the Proposer or in which the Proposer has been judged guilty or liable. Failure to
comply with the terms of this provision will disqualify any proposal. The City reserves the
right to reject any proposal based upon the Proposer's prior history with the City or with any
other party, which documents, without limitation, unsatisfactory performance, adversarial or
contentious demeanor, significant failure(s) to meet contract milestones or other contractual
failures.
P. NEGOTIATIONS
The City reserves the right to negotiate final contract terms with any Proposer selected. The
contract between the parties will consist of the RFP together with any modifications thereto,
and the awarded Contractor's proposal, together with any modifications and clarifications
thereto that are submitted at the request of the City during the evaluation and negotiation
process. In the event of any conflict or contradiction between or among these documents,
the documents shall control in the following order of precedence: the final executed contract,
the RFP, any modifications and clarifications to the awarded Contractor's proposal, and the
awarded Contractor's proposal. Specific exceptions to this general rule may be noted in the
final executed contract.
Negotiations shall be confidential and not subject to disclosure to competing Contractors
unless and until an agreement is reached. If contract negotiations cannot be concluded
successfully, the City reserves the right to negotiate a contract with another Contractor or
withdraw the RFP.
Q. NON -PAYMENTS
Note that payments will NOT be made for any unsatisfactory work until corrected. In the event
of nonpayment of undisputed sums by the City, Contractor shall give the City thirty (30)
working days to cure the alleged breach.
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R. OWNERSHIP OF DOCUMENTS
The City has permanent ownership of all directly connected and derivative materials produced
under this contract by the Contractor. All documents, reports and other incidental or derivative
work or materials furnished hereunder shall become and remains the sole property of the City
and may be used by the City as it may require without additional cost to the City. Contractor
shall provide the City copies of documents upon its request at any time. None of the documents,
reports and other incidental or derivative work or furnished materials shall be used by the
Contractor without the express written consent of the City.
S. PARKING
The City will not provide free parking and/or reimbursement for the cost of parking while
providing services and conducting business with the City.
T. PROFESSIONAL STANDARDS
Contractor staff shall be courteous to the public and City staff utilizing facilities where
Contractor is performing work, but shall be responsive only to the requests of the City's
Project Manager or designee. Contractor staff shall direct all inquiries to Project Manager or
designee.
Contractor acknowledges that City locations consist of public -use facilities and recognizes
the obligation to ensure Contractor personnel and agents maintain the highest level of
professional standards in attire, decorum, and interaction with the public and City personnel.
U. PROJECT MANAGER
The selected Proposer will assume responsibility for all services in its proposal. The selected
Proposer shall identify a sole point of contact, Project Manager, with the greatest
knowledge in regard to the required service operations and contractual matters, including
payment of any and all charges resulting from the Agreement.
V. PROPOSAL VALIDITY
Services, pricing, and warranties indicated in a Proposer's Proposal must be valid for a period
of 180 days at minimum after the submission of the Proposal.
W. PUBLIC AGENCIES
Other public agencies, as defined by California Government Code Section 6500, may choose
to use the terms of this Contract, subject to Contractor's acceptance. The City is not liable or
responsible for any obligations related to a subsequent contract between Contractor and
another public agency.
X. PUBLIC RECORDS
Proposals will become public record after the award of a contract unless the proposal or
specific parts of the proposal can be shown to be exempt by law. Each Proposer may clearly
label all or part of a proposal as "CONFIDENTIAL" provided that the Proposer thereby agrees
to indemnify and defend the City for honoring such a designation. The failure to so label any
information that is released by the City shall constitute a complete waiver of any and all claims
for damages caused by any release of the information. Proposer information identified as
proprietary shall be maintained confidential, to the extent allowed under the California Public
Records Act.
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Y. SUBCONTRACTORS
Proposals in response to this RFP must identify any Subcontractors, and outline the
contractual relationship between the Awarded Subcontractor and each Subcontractor. An
official of each proposed Subcontractor must sign, and include as part of the proposal
submitted by the Prime Contractor, a statement to the effect that the Subcontractor has read
and will agree to abide by the awarded Contractor's obligations. Any Subcontractor proposed
after award of contract must be approved by the City before commencement of work.
The City will look solely to the awarded Contractor for the performance of all contractual
obligations which may result from an award based on this RFP, and the awarded Contractor
shall not be relieved for the non-performance of any or all Subcontractors.
XIV. AWARD OF AGREEMENT
Selected Contractor(s) will be notified in writing. Any award is contingent upon the successful
negotiation of final contract terms.
A. EXECUTION OF AGREEMENT
A standard agreement is included as EXHIBIT II Sample Agreement of this RFP. "Proposer"
will hereinafter be referred to as "Consultant" or "Contractor" in standard agreement. The
term of the agreement will begin after the agreement is fully executed, and all required bonds,
insurance documents and contents of the payment information packet have been received
and approved.
XV. IMPLEMENTATION
A. KICK-OFF MEETINGS
The successful proposer will be required to meet with City staff prior to commencement of
services or at any time as required by the City, to discuss and agree on operational issues
including transition of services and scheduling.
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EXHIBIT I
SCOPE OF SERVICES
Consultant or Consultant's software solution shall include a centralized data collection system that will
meet the City's current and future demands for customer intake, data management, discovery and
collection of taxes and fees. Implementation of the Business License Tax Software Platform shall be a
comprehensive, state-of-the-art business licensing software that can provide a start to finish solution and
should include the ability to integrate with other software utilized by the City. The software solution must
meet or exceed the specifications outlined below:
A. GENERAL SYSTEM / SOFTWARE REQUIREMENTS
The ability to integrate with various City & Third -Party solutions, including but not limited to the
City's incoming LMS (Clariti) and the City's Treasury Services payment modules (System
Innovators iNovah application & City of Santa Ana's PAY application), and the City's current
Enterprise Resource Planning (ERP) system, Infor Lawson. However, please note, the City is
currently undergoing a separate, competitive solicitation process for an ERP system and the
current ERP system may change in the next 2-5 years.
a. Included in this integration are links to automatically push/pull defined customer service
information ("CIS") data relating to Proactive Residential Enforcement Program (PREP)
accounts, Certificates of Occupancy, and Home Occupation Permits. Other records may
be synced into this system throughout the years.
2. Support for an automatic registration capability to convert qualified pre -licensing accounts to
active business license tax accounts ready for receipt/business license certificate issuance or
variance/penalty billing.
3. Support for a competent in arrears original delinquency penalty abatement calculation/billing
capability — (see Business License Tax Code — SAMC Sec. 21-25), and incorporate a flexible
installment agreement function with tracking.
4. Support for pre -licensing and license renewal "pop-up" calculators is required.
5. Proposal shall also include provision and support for filing, reporting, and payment tracking
modules for the City's Business License Tax, Cannabis Tax, Hotel Visitors' Tax (HVT), Utility
Users' Tax (UUT), Proactive Rental Enforcement Program (PREP), and Tourism Marketing
Districts (TMD) programs for registration, renewal, payment, and collection needs.
6. Automate the application, renewal, and payment business process of City of Santa Ana tax and
assessment accounts, including but not limited to Business License Tax, Cannabis tax, HVTs,
UUTs, PREPs, and TMDs, with the flexibility to track leads as well as the capability to add the
following functions:
a. The automation must contain configurable workflow functions and notification capabilities
to support robust online business licensing with expedited City staff interactions for review,
approval, and release.
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b. In instances of initial business licensing not requiring City staff review, the system must
permit fully automated online licensing (e.g. out-of-town state license contractors,
absentee residential rental property landlords, etc.). The online capabilities must include
but are not limited to:
i. Customers create a profile and receive login/password credentials with the ability
to initiate password resets;
ii. Staff may reset credentials if a customer is locked out;
iii. Customers may upload multiple images or other documentation with online
applications. The ability to store all documentation submitted within the system
itself with document management capabilities is highly desirable.
iv. System MUST possess the capability to link to the City's Laserfiche application to
connect documents and files, either printed/scanned or digitally generated, i.e.
Adobe PDF. The ability to run a full text search on all stored documentation and
scanned files is required;
v. Customers may update and request to cancel their business license online, with
staff approvals permitted;
vi. Enable secure signatory processes which may be built into the system or
integrated with an outside platform (e.g. Simple Signature); and
vii. The workflow processes must ensure all requirements are met prior to a business
license being issued. This includes but is not limited to, possessing occupancy
permits, Alcohol Beverage Control (ABC) licenses, and contractor licenses, which
will require the system to communicate with the City's incoming LMS (Clariti). This
functionality would in turn allow for multiple sales permits to be assigned to a single
business license.
7. Calculate standard or special taxes, fees, and assessments (in addition to penalties and interests)
from City -defined formulas or rates with the ability for authorized City staff to override and amend
the amounts charged.
a. The ability to set start- and end -dates for such calculations is required.
b. Records of staff overrides must be maintained with the name of the staff member plus ID
number and the reason for the modification.
i. Selection of reasons from a configurable drop -down list is ideal.
c. Tax and fee adjustments may only occur after the acceptance of an initial tax or fee is
collected and may be done as a refund, revision, resubmission, adjustment,
apportionment rule/apportionment audit, or transfer.
d. A "scenario calculator" to estimate taxes, fees, and assessments is highly desirable;
8. The ability to associate a payoff order/sequence to fees, taxes, interests, penalties, and any other
charges within the system.
a. The computation of the final payoff order/sequence when applying received payments
must be in accordance to existing and future Santa Ana Municipal Code, and Business
License Tax Administrative Procedures.
b. For the proposers' knowledge, the Santa Ana Municipal Code § 21.66 states, "Money
received during the current year for a license shall first be applied to the payment of
delinquent fees, sums and penalties due during any preceding calendar year, any balance
remaining thereafter shall be applied to the payment of the current license fees and
penalties."
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9. Record and associate accounts with invoice identifiers, receipts (including date and time of
payment), and revenue account numbers for each tax and fee transaction.
a. The distribution of digital receipts to the emails on record when payments are made in -
person is ideal;
10. Categorize and group accounts by appropriate record elements, particularly by business type,
and apply the appropriate estimated taxation based on the license type category and related tax
assessment;
11. Allow for records to be searched, tracked, logged, and monitored based on different record
elements, such as active/inactive status, age, location/GIS code, and business type;
12. Allow for City staff to insert comments and notes on any account and place flags or warnings to
accounts based on special comments/conditions, with timestamps and logs stored for each entry
or transaction, including staff name plus ID number.
a. All financial transactions, including changes in taxes/fees and adjustments, must be
recorded for audit purposes.
b. As part of the workflow functions, a flag or other special notations should trigger
notifications to staff as well as place holds on accounts;
13. Generate consistent and accurate reports in standard or customizable formats on a scheduled or
as -needed basis.
a. The ability to share/view/read large -size or all -record reports through the system to outside
regulatory agencies or internal City departments is ideal;
14. Migrate data from the City's current software(s) to the awarded software system;
15. Provide continuous updates or allow for the configuration of rules within the system to meet the
City's changes in legislative requirements, technology needs, and operational demands, in
addition to complying with Federal and State of California laws and regulations;
16. Support Section 508 Accessibility Standards; and
17. Apply the City of Santa Ana logo and other branding elements where appropriate.
B. TECHNICAL SYSTEM / SOFTWARE REQUIREMENTS
1. Function in a web -based environment with support for multiple browsers including Microsoft Edge
Chromium Edition and Google Chrome browsers on Windows versions 10 and 11.
a. Provide updates for future web browsers and Windows operating systems.
b. The City requests that any web -based system not require Internet Explorer 11 mode to be
engaged;
2. Provide automatic file backups with daily continuity and disaster recovery;
3. Provide or integrate with a GIS/GEO code address master to ensure applicants seeking licensure
as in -city businesses have both a City of Santa Ana postal designation as well as function at a
validated physical location within the City's formal boundaries. Proposed solutions should support
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GIS/GEO coding/mapping for inquiry look -up, investigation/inspection assignment, revenue
tracking/reporting, and account aging & collection activities, together with general reporting and
database extract purposes.
a. This functionality must also allow for the system to recognize coded geographical areas
that assess special taxes such as BIDs. Defined data sets will be required to be maintained
for the City Downtown BID and the City's TMD.
b. The GIS/GEO coding must work as an electronic export as well as in instances when data
must be backed up or reviewed externally, such as when the Franchise Tax Board
conducts comparative tax audits.
c. A scalable master database export function is also required for defined elements of the
principal business license tax dataset, as well as for ancillary modules, and for defined
GIS/GEO-coded districts/areas.
d. The coding must align with coding from CDTFA/third-party consultant Sales Tax Allocation
data for other comparative tax audits;
4. Integrate with the City's incoming LMS (Clariti) to properly link licenses with the City's real estate
records.
a. The ability to store an internal address repository with access to Clariti is ideal.
b. The proposed system must be able to automatically suppress issuance of a formal
business license tax certificate when unapproved or pending requirements are noted in
Clariti;
c. It is highly desirable that the system also support secondary City -generated address
masters connecting to: County of Orange Assessor Property Records (i.e., assessor
parcel number); and State of California Department of Tax & Fee Administration permitted
sales tax addresses.
d. The ability to encode and associate visual geographical information to
addresses/accounts, such as street views, is ideal.
5. Support for County of Orange tax lien and City of Santa Ana administrative citation processes
should also be incorporated;
6. Handle Standard Industrial Classification (SIC) Code assignments / North American Industrial
Classification System (NAICS) Code selections as part of the initial business licensing process;
7. Ensure data integrity, accuracy, and completeness with standard or configurable validation rules
for data fields;
8. Possess the ability for bulk data entry where staff may enter renewal reporting information for a
set of accounts all at once via a file import or through bulk data entry screens to streamline paper
renewal processing workflows.
a. The submittal of bulk data (or any data) should trigger the workflow processes within the
system to automatically update accounts and calculate taxes, fees, and assessments. The
City's current system allows for this function in which staff enter records for approximately
3,000 accounts manually from paper submissions;
9. Possess the ability to export account records in bulk with mail merge printing capabilities, allowing
the creation and revision of business license application forms, noncompliance notices,
certificates, and other letters/memorandums/documents with predefined document templates.
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a. This function should allow for bulk selection by business license category, geographical
location or zone, age, or other characteristics;
10. Possess the ability to send mass digital/email notices, certificates, and other
letters/memorandums/documents with predefined notice templates to select email addresses on
record;
11. Automatically generate and distribute invoices/billing statements and filing forms via email for
business license renewals on a monthly, quarterly, semi-annual, annual, or as -needed basis
based on the business type or other defined characteristics.
a. These renewal notices must be submitted in advance of renewal deadlines, for example,
trust tax and cannabis tax filers must receive renewal notices 30 days prior to their filing
deadline.
b. As -needed and special invoicing/billing may occur when an account is closed but a
balance remains, there is a zero gross receipts assessment, or other criteria/events;
12. Possess the ability to export financial records or contain a General Ledger interface that
communicates with the City's existing or future financial systems and other City software systems.
Additional reporting capabilities that summarize and detail specific fees or tax assessments is
required.
a. For the Proposer's knowledge, the City of Santa Ana will soon issue an RFP for ERP
solution and implementation services. The ideal Business License Taxation solution would
integrate with the selected ERP system. Proposers should include in their Proposals any
ERP implementation partners with which they have successfully integrated their software
solution as related to services specified herein.
13. Accept payments by cash, check, credit, ACH/EFT with the ability to accept payments online
including partial payments and mixed tender payments (combination of check, credit, and cash).
a. Software functionality should also allow field staff to directly access and edit accounts,
including acceptance of credit card payments while performing field activities.
b. The proposed system must also accept and support partial payments, and also allow for
a variance billing notice to be generated and mailed to the business owner.
c. In -person payments may be done at POS cashiering stations or via publicly -accessible
kiosks.
d. The City utilizes Invoice Cloud as its online and payment kiosk processor and TSYS Global
Payments as its walk-in payment processor; integrations with Invoice Cloud and TSYS,
as well as System Innovators iNovah Cashiering and Revenue Tracking applications is
highly desirable.
e. The City utilizes the following merchant processors: TSYS Merchant Solutions, LLC;
Global Payments Integrated, Inc.; OpenEdge; JP Morgan Chase Paymentech; and EPX
— Electronic Payment Exchange;
f. Phone payments must also be allowed; however, may be done through a mobile
application/browser, text, or automated voice call.
g. All online payment functionalities must be available 24/7, 365 days a year;
14. Permit staff to adjust payments (e.g. payment submitted to wrong account or fee and adjustments
are needed) with record of transactional changes within the system;
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15. Issue a paper receipt or an online receipt upon receiving a completed payment.
a. The City's current software allows business license tax payments to be by mail; received
in -person as a credit card, check, cash, or mixed tender payment; and online as a credit
card or ACH payment;
16. Track account deposits and credits that may be applied to future business license renewals.
a. Deposits and credits may also be used an escheatment to settle delinquent closeout
accounts;
17. Support a City -controlled carry -forward function to carry unpaid balances forward into a future tax
year.
a. The City currently allows unpaid balances less than $50 to be carried forward;
18. Process payment refunds, issue credits, and void payments transactions;
19. Impose a fee for payments returned as a result of insufficient funds.
a. The workflow processes must automatically generate a letter to be sent via USPS mail in
addition to a notification sent via email to the customer's email address on record.
b. A customer must possess the option to initiate a payment plan with staff review to alleviate
this issue;
20. Automatically generate and place warnings and/or holds on noncompliant accounts as a result of
delinquency, license expiration, returned payments (i.e., bounced checks), partial payments not
approved, and other City -defined characteristics;
21. Support the ability to place specific business type accounts in a nonrenewal "suspense" state if
the license is not renewed within a twelve (12) month period.
a. This currently occurs for State Licensed Contractors and Special Event Participants who
receive annual reminders for three (3) years after expiration in the suspended state and
afterward they are determined as inactive/closed;
22. Remain in compliance with industry -standard payment security protocols and regulations,
including Payment Card Industry Data Security Standards (PCI DDS);
23. Allow an authorized staff member to manually release an automatic "Hold" on an account to permit
issuance of a business license tax certificate;
24. Contain or implement security measures to protect the confidentiality and integrity of information
on record which includes but not limited to:
a. Utilizing session timeouts,
b. Allow viewing of data to authorized persons,
c. Placing view/read limits for defined users showing only a limited subset of account data,
d. Allowing edit/write permissions for defined users,
e. Encrypting sensitive information including passwords at the database and system level,
City of Santa Ana RFP No. 23-165 Page 26 of 196
(9)
f. Masking data at the user and application level (administrator and inactive directory
accounts), and
g. Enabling the selection of system administrators;
25. Support a single sign -on from within the City of Santa Ana's internal network.
a. If single sign -on is unavailable, supports LDAP authentication via Active Directory. At the
minimal, employ authentication measures using application -based sign -on with
usernames and passwords secured over the TLS communication protocol version 1.2 and
greater;
b. For externally hosted solution, authenticate using SAML 2.0 is preferred.
26. For on -premises hosting, The City of Santa Ana Information Technology prefers solution that is
compatible with Microsoft Windows Server, preferable the latest version (2022). If Microsoft
Windows Server is not supported, alternate operation systems may be considered but priority is
to Windows Server;
27. For on -premises hosting, The City of Santa Ana Information Technology prefers solution that is
compatible with Microsoft SQL Server 2017 or 2019 name instance. If Microsoft SQL Server is
not supported, alternate database systems may be considered but priority is to SQL Server;
28. Integrate with Microsoft Exchange Server 2016 or later for system functionalities requiring City
infrastructure to send and receive emails; and
29. Ensure that the proposed system provides updates for current and future versions of integrated
City software at no additional cost, except cost incorporated in an annual base support and
maintenance fee.
C. PUBLIC PORTAL / CITIZEN ACCESS REQUIREMENTS
Ensure the Public Portal / Citizen Access component(s) support multiple browsers and their
versions, and multiple operating systems in desktop or scalable mobile formats (i.e. tablet,
smartphone, laptop, etc.);
a. Software web and mobile device functionality is a requirement in order to provide an
effective e-commerce experience and unique "customer friendly" online portal for
businesses, property owners, applicants, and contractors to access their business license
information and status.
2. Support translations within the system itself or through integrated tools, such as Google Translate,
with specialized expert (City defined) language translations as needed;
3. Enable members of the public to submit inquiries and complaints online, without requiring access
credentials should submitters desire to remain anonymous.
a. This function may employ a link to the City of Santa Ana's web forms, or may offer a
module for inquiries within the system itself which is ideal; and
4. Control information visibility and limit public access to internal information with the City able to
determine what is viewable by the public.
City of Santa Ana RFP No. 23-165 Page 27 of 196
(9)
a. Examples of publicly -permitted functions are conducting business license searches with
pre -defined data returns and viewing the City's business license roster with filter
capabilities (e.g., date of business startup, license type, address, and name).
D. UNLICENSED BUSINESS LEAD DEVELOPMENT REQUIREMENTS
Actively support the conversion process of guiding leads towards business license registration
which may include the upload of external data to be compared with City of Santa Ana data to
identify unlicensed businesses within the City's boundaries.
a. The workflow processes must allow for mass communication to leads with the ability to
track responses.
b. The system must provide a pre-licensing/revenue tracking module utilizing available City
of Santa Ana and third- party business data for sub -programs, such as but not limited to:
i. Franchise Tax Board (FTB) business license exchange data;
ii. Secretary of State (SOS) pass-thru entities and holding companies;
iii. Fictitious Business Name (DBA) business name registrations;
iv. Sales Tax Registrations (AB990);
v. Sales Tax Allocations
vi. State of California's Contractors State License Board business registrations; and
vii. Other miscellaneous in-house sub -program data (e.g. Commercial Landlord
Tenant Roster/Independent Contractor filings, Municipal Utility Tenant
registrations, Section 8 Housing registrations, Condominium/HOA Roster Filings,
Purchasing Agreements and Specifications)
2. Possess the ability to search, filter, and categorize leads to view and process by source, business
license type, campaign category, and other relevant attributes; and
3. Possess the ability to export bulk lead records with mail merge printing capabilities to allow for
the creation and revision of licensing notices and other letters/memorandums/documents
generated with predefined document templates, including archiving final notices based on
campaign type and requestor ID.
E. IMPLEMENTATION REQUIREMENTS
1. Full implementation, release, and acceptance are required by mid- to late-2025.
2. Proposers must provide projected software customization, testing, data migration,
implementation, parallel operation and final release and acceptance timelines.
3. Provide unlimited phone and email support to the City of Santa Ana during the City's regular
business hours. The City operates from 7:30 A.M. — 5:30 P.M. Monday through Thursday, and
8:00 A.M. — 5:00 P.M. every other Friday.
4. Emergency support after regular business hours must also be made available and may be
charged separately.
5. The ability to provide remote support is ideal.
6. The ability to view Support and Enhancement Requests (including individual and City-wide
request tickets) via reports and/or portal access is required.
City of Santa Ana RFP No. 23-165 Page 28 of 196
(9)
7. Provide a testing environment for implementation of the new system. The testing environment
must remain available at all times during the term of the contract.
8. Contractor must own, lead, manage, and coordinate all aspects of the project to migrate from the
City's current taxation software to the awarded application.
9. Contractor must own and manage the entirety of the historical data conversion from the current
system to the awarded application.
10. Contractor is responsible for the cleansing, extraction, translation, and upload of the City's data.
a. The data to be included is all historical data in the City's legacy database up until the
production cutover date. The converted data will be available in the new application in a
format that is similar or improved in capability, productivity, and efficiency as the intended
usage in the legacy system;
11. City staff's responsibility will be limited to providing general feedback on the data conversion.
12. Contractor must provide comprehensive software training that includes, but is not limited to, end -
user training with training manuals for all back -office users and administrator/configuration training
with training manuals (up to 10 users).
a. No train -the -trainer approach shall be utilized by the vendor.
F. OPTIONAL OFFERINGS
Offer a module for the administration of the PREP, including a public interface, with the ability to
perform primary and variance/penalty billing utilizing the same business rules as the Business
License Taxation Software.
a. PREP assessment periods are from July 1 to June 30 of the following calendar year.
b. The module must share real-time integration with the City's Land Management Software
(Clariti).
City of Santa Ana RFP No. 23-165 Page 29 of 196
EXHIBIT II
SAMPLE AGREEMENT
CONSULTANT -AGREEMENT
CITY OF SANTA ANA
THIS AGREEMENT is made and entered into on this day of , 20 by and between
, ("Consultant'), and the City of Santa
Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State
of California ("City").
RECITALS
A. The City desires to retain a Consultant having special skill and knowledge in the field of:
B. Consultant represents that Consultant is able and willing to provide such services to the City.
C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field
and that any services performed by Consultant under this Agreement will be performed in compliance with
such standards as may reasonably be expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and
conditions hereinafter set forth, the parties agree as follows:
SCOPE OF SERVICES
Consultant shall perform during the term of this Agreement, the tasks and obligations including all labor,
materials, tools, equipment, and incidental customary work required to fully and adequately complete the services
described and set forth in Scope of Services - Exhibit A, attached hereto and incorporated by reference.
2. COMPENSATION
a. City agrees to pay, and Consultant agrees to accept as total payment for its services for City, the rates
and charges identified in Compensation - Exhibit B. The total amount to be expended during the term
of this Agreement shall not exceed $xxxxxx.
b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing
work performed, subject to City accounting procedures. Payment need not be made for work which
fails to meet the standards of performance set forth in the Recitals which may reasonably be expected
by City.
3. TERM
This Agreement shall commence on the date first written above for an initial period of five (5) years. The
City may, at its discretion, extend the agreement with the same or more limited scope of required services for three
(3) additional periods of two (2) years, one (1) year, and a final optional extension for a one (1) year period, upon
mutual agreement contingent upon City Council approval, or City Manager or City Attorney authorization, as
appropriate. The total term of the awarded agreement shall not exceed nine (9) years. The Agreement may be
terminated earlier in accordance with Section 15, below.
4. INDEPENDENT CONTRACTOR
Consultant shall, during the entire term of this Agreement, be construed to be an independent Consultant
and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -
employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the
City of Santa Ana RFP No. 23-165 Page 30 of 196
(9)
professional manner in which Consultant performs the services which are the subject matter of this Agreement;
however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable
standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social
security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all
applicable withholding taxes.
OWNERSHIP OF MATERIALS
This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or
sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies,
drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression,
including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes,
which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data").
Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual
license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and
warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such
representation and warranty in regard to Documents & Data which were provided to Consultant by the City. City
shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not
within the purposes intended by this Agreement shall be at City's sole risk.
6. INSURANCE
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries
to persons or damages to property which may arise from or in connection with the performance of the work
hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors.
MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:
Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL
on an "occurrence" basis, including products and completed operations, property damage, bodily injury
and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general
aggregate limit applies, either the general aggregate limit shall apply separately to this project/location
(ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
Cyber Liability: Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000
aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is
undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving security
breach, system failure, data recovery, business interruption, cyber extortion, social engineering,
infringement of intellectual property, including but not limited to infringement of copyright, trademark,
trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic
information, release of private information, and alteration of electronic information. The policy shall
provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring
expenses.
o Technology Professional Liability Errors and Omissions Insurance appropriate to the
Consultant's profession and work hereunder, with limits not less than $2,000,000 per
occurrence. Coverage shall be sufficiently broad to respond to the duties and obligations as is
undertaken by the Vendor in this agreement and shall include, but not be limited to, claims
involving security breach, system failure, data recovery, business interruption, cyber extortion,
social engineering, infringement of intellectual property, including but not limited to infringement
of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage
to or destruction of electronic information, release of private information, and alteration of
electronic information. The policy shall provide coverage for breach response costs, regulatory
fines and penalties as well as credit monitoring expenses.
■ The Policy shall include, or be endorsed to include, property damage liability
coverage for damage to, alteration of, loss of, or destruction of electronic data and/or
information "property" of the Agency in the care, custody, or control of the Vendor. If
City of Santa Ana RFP No. 23-165 Page 31 of 196
(9)
not covered under the Vendor's liability policy, such "property" coverage of the
Agency may be endorsed onto the Vendor's Cyber Liability Policy as covered property
as follows
If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the Entity
requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor. Any
available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available
to the Entity.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The Entity, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL
policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including
materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can
be provided in the form of an endorsement to the Contractor's insurance (at least as broad as ISO Form CG 20 10
11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37
if a later edition is used).
Primary Coverage
For any claims related to this contract, the Contractor's insurance coverage shall be primary coverage at least as
broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any insurance
or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the
Contractor's insurance and shall not contribute with it.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the
Entity.
Waiver of Subrogation
Contractor hereby grants to Entity a waiver of any right to subrogation which any insurer of said Contractor may
acquire against the Entity by virtue of the payment of any loss under such insurance. Contractor agrees to obtain
any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless
of whether or not the Entity has received a waiver of subrogation endorsement from the insurer.
Self -Insured Retentions
Self -insured retentions must be declared to and approved by the Entity. The Entity may require the Contractor to
purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim
administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to
provide, that the self -insured retention may be satisfied by either the named insured or Entity.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best's rating
of no less than A:VII, unless otherwise acceptable to the Entity.
Claims Made Policies
If any of the required policies provide coverage on a claims -made basis:
1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract
work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after
completion of the contract of work.
3. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a
Retroactive Date prior to the contract effective date, the Contractor must purchase "extended reporting" coverage
for a minimum of five (5) years after completion of contract work.
City of Santa Ana RFP No. 23-165 Page 32 of 196
(9)
Verification of Coverage
Contractor shall furnish the Entity with original Certificates of Insurance including all required amendatory
endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy
of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to Entity before work
begins. However, failure to obtain the required documents prior to the work beginning shall not waive the
Contractor's obligation to provide them.
The Entity reserves the right to require complete, certified copies of all required insurance policies, including
endorsements required by these specifications, at any time.
Certificate Holder must be addressed as follows:
City of Santa Ana
Risk Management Division
20 Civic Center Plaza
Santa Ana, CA 92702
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated
herein, and Contractor shall ensure that Entity is an additional insured on insurance required from subcontractors.
Special Risks or Circumstances
Entity reserves the right to modify these requirements, including limits, based on the nature of the risk, prior
experience, insurer, coverage, or other special circumstances
7. INDEMNIFICATION
Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents,
employees, contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just
compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and
claims for property damage, which may arise from the negligent operations of the Contractor, its subcontractors,
agents, employees, or other persons acting on its behalf which relates to the services described in section 1 of this
Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable
relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and hold harmless
agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or
alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or
effects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs
for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any
action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just
compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms
of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation
in any legal proceeding. Notwithstanding the foregoing, to the extent Contractor's services are subject to Civil Code
Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims
that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor.
8. INTELLECTUAL PROPERTY INDEMNIFICATION
Consultant shall defend and indemnify the City, its officers, agents, representatives, and employees against
any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright
infringement, including costs, contained in the work product or documents provided by Consultant to the City
pursuant to this Agreement.
9. RECORDS
Consultant shall keep records and invoices in connection with the work to be performed under this
Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this
City of Santa Ana RFP No. 23-165 Page 33 of 196
(9)
Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three
(3) years, or for any longer period required by law, from the date of final payment to Consultant under this
Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of the
City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant
to this Agreement during regular business hours. Consultant shall allow inspection of all work, data, documents,
proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment
to Consultant under this Agreement.
10. CONFIDENTIALITY
If Consultant receives from the City information which due to the nature of such information is reasonably
understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information
except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to
protect its own information of like importance, but in no event less than reasonable care. "Confidential Information"
shall include all nonpublic information. Confidential information includes not only written information, but also
information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either
party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of
non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available
sources; (b) is, through no fault of the Consultant disclosed in a publicly available source; (c) is in rightful possession
of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is
independently developed by the Consultant without reference to information disclosed by the City.
11. CONFLICT OF INTEREST CLAUSE
Consultant covenants that it presently has no interests and shall not have interests, direct or indirect, which
would conflict in any manner with performance of services specified under this Agreement.
12. NON-DISCRIMINATION
Consultant shall not discriminate because of race, color, creed, religion, sex, marital status, sexual
orientation, gender identity, gender expression, gender, medical conditions, genetic information, or military and
veteran status, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the
recruitment, selection, teaching, training, utilization, promotion, termination or other employment related activities
or any services provided under this Agreement. Consultant affirms that it is an equal opportunity employer and shall
comply with all applicable federal, state and local laws and regulations.
13. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and Contractor, and
supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between
the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement
may not be modified except by written instrument signed by the City and by an authorized representative of
Contractor. The parties agree that any terms or conditions of any purchase order or other instrument that are
inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City.
Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally
or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein.
14. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Consultant may
not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and
any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered
null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services
which are the subject to this Agreement performed by City personnel or by other Contractors retained by City.
15. TERMINATION
City of Santa Ana RFP No. 23-165 Page 34 of 196
(9)
This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such
event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services
performed by Consultant prior to receipt of such notice of termination, subject to the following conditions:
a. As a condition of such payment, the Executive Director may require Consultant to deliver to the
City all work product(s) completed as of such date, and in such case such work product shall be
the property of the City unless prohibited by law, and Consultant consents to the City's use thereof
for such purposes as the City deems appropriate.
b. Payment need not be made for work which fails to meet the standard of performance specified in
the Recitals of this Agreement.
16. WAIVER
No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions
of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right
or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach,
failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing
so specifies.
17. JURISDICTION -VENUE
This Agreement has been executed and delivered in the State of California and the validity, interpretation,
performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the
laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any
action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement.
18. PROFESSIONAL LICENSES
Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits,
approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws
and regulations of the United States, the State of California, the City of Santa Ana and all other governmental
agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits,
licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement.
19. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing
and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage
prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following
persons:
To City:
Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Fax: 714- 647-6956
With courtesy copies to:
Finance & Management Services Agency
City of Santa Ana
20 Civic Center Plaza (M-15)
City of Santa Ana RFP No. 23-165 Page 35 of 196
(9)
P.O. Box 1981
Santa Ana, California 92702
ATTN: Alejandra Gutierrez
Fax: 714-647-5497
To Contractor:
First & Last Name
Title
Consultant Firm Name
Address
City, State, Zip
Fax:
A party may change its address by giving notice in writing to the other party. Thereafter, any communication
shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed
to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified,
with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed
to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the
transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames,
weekends, federal, state, County or City holidays shall be excluded.
20. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the power, authority
and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify
City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the
event that such authority or power is not, in fact, held by the signatory or is withdrawn.
The Agreement is the final and complete agreement and any prior or contemporaneous
agreements for similar services between the parties is superseded by this Agreement. This shall
not apply where the Parties are currently engaged and Consultant is providing services not
contemplated by this Agreement.
C. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the
body of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written.
ATTEST:
Jennifer L. Hall
City Clerk
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By:
Assistant City Attorney
CITY OF SANTA ANA
Steven A. Mendoza
Acting City Manager
CONSULTANT:
(name)
(title)
City of Santa Ana RFP No. 23-165 Page 36 of 196
(9)
Tax ID#
RECOMMENDED FOR APPROVAL:
Kathryn Downs, CPA
Executive Director, Finance & Management Services
Finance & Management Services Agency
City of Santa Ana RFP No. 23-165 Page 37 of 196
(9)
EXHIBIT III
CITY OF SANTA ANA GENERAL BUSINESS LICENSE TAXATION OVERVIEW
The following is a brief overview of the Santa Ana Business License Tax program including some of the
functionalities and processes employed by our homegrown BTS.Net application. (Please note that our
Business Tax System (BTS) Software is currently linked with Infor Lawson for our General Ledger
software as well as Laserfiche for our scanned document repository software.)
Flat Rate
Flat Rate license taxes are required to be paid annually and are due and payable on December 1 of every
year. Flat Rate licenses become delinquent if not paid by January 1. The Table below gives some
statistical information relating to the volume involved in the Flat Rate renewals based on various business
tax groups as of July 31, 2023.
Advertising Sw (Bill Posting, Flyers, Loudspeakers
Amusement Center (> 10 days)
Carnival or Circus (< 4000 people)
Christmas Tree or Pumpkin Patch Lot
Firework Stand
Gratuitous
Gratuitous - Registration Exempt
Home Based Business
Independent Contractor
Itinerant Merchant
Mobile Home Rental
One Day Peddler/Solicitor
Peddler/Solicitor
PushCarts
Residential Rental
Sports Exhibition
State License Contractor - Class A/B
State Licensed Contractor- Class C
Warehouse or Storage
Totals:
1
1
0
1
0
0
1
0
1
0
1
0
2
0
2
2
0
0
2
0
2
0
2
0
78
56
22
0
78
0
97
97
0
5
92
76
1148
356
792
1071
77
9
479
479
0
1
478
286
793
793
0
53
740
579
5
2
3
0
5
0
78
78
0
0
78
54
2
0
2
1
1
1
29
29
0
10
19
10
22
22
0
0
22
4
7233
7233
0
1
7232
6481
2
1
1
2
0
0
2304
1294
1010
2058
246
63
3553
2116
1437
3112
441
154
204
204
0
0
204
3
16033
12761
3272
6317
9716
7720
Flat Rate renewals are prepared starting in November with CPI rate adjusted values computed for the
period beginning June 30th and ending October 31 st of each current year entered into the BTS rate tables
for all different types of assessment accounts (Flat Rate, Fixed Variable Flat Rate, Gross Receipts, and
Variable Flat Rate). All Flat Rate renewals are mailed out on or about November 25 of each year. A
message referring to all of up and coming holiday closures for December and January is printed on the
renewals themselves as a special message. For this group of business licenses renewals "Fixed Flat
Variable Assessment" is the largest segment and predominately includes Apartment Complexes,
Apartment Houses, Multiplex Residential Rental Properties to Single Family Residential Rental
Properties and Condo Rental Properties.
Suspense Accounts
Suspense Accounts are a subset of Flat Rate accounts that are not automatically programmed to renew.
That is to say, that they do not get annual charges added on to them automatically. A review on Suspense
City of Santa Ana RFP No. 23-165 Page 38 of 196
(9)
Accounts are done yearly to close out accounts that have had no activity after four years. In order to
renew a Suspense Account either the Customer or a City employee with assessment privileges within
the BTS must prompt the system to add charges in order to be billed. Non Resident State Licensed
Contractors, however, are billed but charges are kept in "Suspense". Furthermore, some of the Suspense
accounts are suppressed from being mailed an annual renewal such as Christmas Tree/Pumpkin Patch
lots, Firework Stands, Itinerant Merchants, One Day Peddler/Solicitors, or Sports Exhibitions, as these
activates require special land use certificates or permits. Most of these activities are transient in nature
and require a review of the location were the business activity would be taking place. These types of
activities often vary in location and from day-to-day or year-to-year.
The Table below gives some statistical information as of July 31, 2023 relating to the volume involved in
the realm of Suspense accounts. Note all Suspense accounts fall under the Flat Rate Renewals.
However, some varieties are assessed based on a daily or quarterly tax rate.
Amusement Center (> 10 days)
1/1/2023
12/31/2023
1
Carnival or Circus (< 4000 people)
1/1/2023
12/31/2023
2
Christmas Tree or Pumpkin Patch Lot
1/1/2023
12/31/2023
2
Firework Stand
1/1/2023
12/31/2023
22
Gratuitous - Registration Exempt
1/1/2023
12/31/2023
792
Itinerant Merchant
1/1/2023
12/31/2023
3
One Day Peddler/Solicitor
1/1/2023
12/31/2023
2
Sports Exhibition
1/1/2023
12/31/2023
1
State License Contractor - Class A/B
1/1/2023
12/31/2023
1010
State Licensed Contractor - Class C
1/1/2023
12/31/2023
1437
Total:
3272
Gratuitous / Hobbyist License Charge Accounts
Businesses that operate part-time or are part-time hobbies which generate gross receipts but gross below
a fixed annual threshold amount (currently $5,000.00) may pay a reduced Gratuitous License or Hobbyist
License Charge on a Flat Rate Assessment basis and are eligible to have their registration charges
(Application Processing Charge or Renewal Application Processing Charge) waived.
Gross Receipts Rate Assessment Accounts
Gross Receipts Rate Assessment business license taxes are required to be paid annually and are due
and payable on March 1 of every year. Gross Receipts rate licenses become delinquent if not paid by
the April 1 of each year.
Generally, Gross Receipts Rate Assessment businesses are required to pay a "basic tax" amount,
currently assessed at 60 annually, which for a new business is pro -ratable by quarters depending on
the business start date. In addition, the assessment of gross receipts businesses consists of:
o Gross Receipts based tax rate margin assessment
0 15 Registration Fee (Application Process Charge/Renewal Processing Charge)
o $44 SB 11861AB I379 (State) Fee
City of Santa Ana RFP No. 23-165 Page 39 of 196
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The Table below gives some statistical information relating to the volume involved in the Gross Receipts
renewals broken down into their various business tax groups as of July 31, 2023.
Commercial Rental (Additional Unit)
226
226
0
226
0
Commercial Rental (First Unit)
1433
1433
1
1432
5
Commercial Rental (Special)
5
5
0
5
0
Home Based Business - GR
44
44
1
43
25
Professional Office GR
1190
1190
37
1153
26
Retail and Wholesale
1446
1446
36
1410
69
Retail or Admin
8157
8157
820
7337
1324
Salvage or Recycling
32
32
0
32
0
Vehicles GR (Ambulance, Buses, Limos, & VFH)
37
37
18
19
2
Wholesale
531
531
3
528
14
Total:
13101
13101
916
12185
1465
Gross Receipts Renewals Statements are prepared starting in mid -January to ensure that they are mailed
out by February 15 of each year. There are varieties of different tax rates depending on the nature of the
business. Retail and Services, Wholesale and Manufacturing, Mixed Retail/Services &
Wholesale/Manufacturing, Commercial Rental - First Property, Commercial Rental and Second Property
just to name a few. The current BTS adjusts the instructions to match the various rates as they apply to
the specific type of account. Other varieties of instructions are dictated by location such as non-resident
versus resident businesses. Below are some (not all) samples of the worksheets that are supplied on
the back of the Gross Receipts renewals.
City of Santa Ana RFP No. 23-165 Page 40 of 196
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Retail and Wholesale resident business rate calculation instructions:
The following instructions will help you determine your business tax assessment due. The annual Business License Tax Renewal is based on the
gross receipts the business generated during the preceding calendar year (January 2022 — December 2022). To renew your license and calculate your business
tax assessment, follow these steps.
Step #f1: Enter the total gross receipts on the appropriate line on the Business License Tax Renewal Notice (Renewal Notice) located on the bottom portion of
the front side of this form. The gross receipts to be reported can be obtained by referencing your IRS Tax Schedule Form 1040, schedule C for sole proprietorships;
Form 1120 for corporations, Form 1120-S for S corporations, and Form 1065 for partnerships.
Gross Receipts Include: The total amount of the sale price of all sales, the total amount charged for the performance of any act or service, the total amount
of fees, commissions, or other receipts generated by the business, without any deduction whatsoever.
Step #✓2: Compute the business tax here:
Subtotal Rounded to
Gross Receipts From: Enter 2022 RETAILISERVICE Grass Receipts on the Appropriate Line Below: Base Fee Nearest Whole Dollar
$ x .00065 = $ + $ 60 = $
Subtotal Rounded to
Enter 2022 WHOLSALEWANU WTELEPHONE SERVICES Grass Receipts on the Appropriate Line Below: Base Fee Nearest Whole Dollar
$ x .00050 = $ + $ 60 = $
Enter Retail or Service Business License Tax calculated here: Subtotal(Round to Nearest Whole Dollar) = $
Enter Wholesale/Manuf. Business License Tax calculated here: Subtotal(Round to Nearest Whole Dollar) + $
If BOTH retail and wholesalelmani tax rate tables were used to calculate taxes, subtract $60.00, otherwise enter zero: $
Tax Subtotal (sum lines above; if sum is greater than $100,000 enter, only enter $100,000): _ $
Add Registration Fee: + $ 15.00
Add State of California Disability Access and Education Fund Fee: + $ 4.00
Add Previous Balance or Subtract credit, if reflected here*: $ 0.13 CR
Total Amount Due: _ $
*Note: There may be a previous balance forward owed or a credit amount on file. This figure will be printed next to Previous Balance on the Renewal Notice on the
front side of this form and is also printed in the table above. If no previous balance is owed or there is no credit on file, a zero will appear.
City of Santa Ana RFP No. 23-165 Page 41 of 196
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Cost of operations for resident business rate calculation instructions:
The following instructions will help you determine your business tax assessment due. The annual Business License Tax Renewal is based on the
attributable grass receipts of the business. Attributable gross receipts are defined as the cost of doing business (gross expense) of the business location, during
the preceding calendar year (January 2022 — December 2022). To renew your license and calculate your business tax assessment, fallow these steps.
Step #1: Entertotal attributable gross receipts on the appropriate line on the Business License Tax Renewal Notice located on the bottom portion of the front
side of this form.
For business locations which are the sole or separate branch facility or office engaged in providing administrative Imanagement related services, including, but
not limited to record keeping, data processing, research and development, advertising, public relations, personnel administration or legal services; or, in the
event separate sales or receipt records are not maintained for local office; or, in the event any retailinglwholesalingJmanufacturing or processing activity
conducted does not generate gross receipts, in connection with sales, rentals or services performed at one or more other facilities located within or outside of
the City of Santa Ana; then, the annual Business License Tax Renewal far your business is based on the attributable gross receipts of the business .
Attributable gross receipts are reported for the period of the preceding calendar year. You may elect to choose either of the two following methods
when reporting attributable gross receipts:
Method 1: Straight Cost of Doing Business Basis: The branch facility or office location's attributable gross receipts are equal to the cast of doing
business. COST OF DOING BUSINESS means the total cost of maintaining the branch facility, offce or location, including, but not limited to all wages, salaries,
commissions, bonuses paid, all rent andJor depreciation taken, telephone, postage, utilities, janitorial and any other expenses allocated for maintaining the
facility, office, or location_
Method 2: Proportional Basis: Proportional attributable gross receipts are calculated as follows: 1) Establish the ratio of the company's total cost of doing
business to the branch facility or office location's individual cost of doing business. [COST OF DOING BUSINESS means the total cost of maintaining the branch
facility, office, or location, including, but not limited to all wages, salaries, commissions, bonuses paid, all rent andfor depreciation taken, telephone, postage,
utilities, janitorial and any otherexpenses allocated for maintaining the facility, office, or location.] 2) Apply this same ratio, using the company's total gross
receipts, to determine the proportional amount of the total grass receipts which are attributable to the local branch facility or -office location . (Example: If the
local branch facility or office location's cost of doing business ratio equals 151% of the company's total cost of doing business, then 15% of the company's total
gross receipts are attributable to the local branch facility).
Stop 92: Compute the business tax here
Suhtatal Rounded to
Gross Receipts From: Enter 2022 Gross Receipts on the Appropriate Line Below: Base Fee Nearest Whole Do liar
x 00065 = $ + 5 60 = S
Enter Subtotal Rounded to Nearest Whole Dollar here: Slf sum is greater than 5100,000 enter, only enter $100,000) = S
Add Registration Fee: + $ 15.00
Add State of California Disability Access and Education Fund Fee: + S 4.00
Add Previous Balance or Subtract credit, if reflected here': + S 0.00
Total Amount Due: = S
"Note: There may be a previous balance forward owed or a credit amounton file. This figure will be printed next to Previous Balance on the Renewal Notice on the
front side of this form and is also printed in the table above. If no previous balance is owed or there is no credit on file, a zero will appear.
Gross Receipts Deposit Accounts
Gross Receipts Deposit Renewal are accounts that have deposited funds with the City and are subject
to a gross receipts assessment. This occurs with new businesses that are required to pay a business
license tax but lack the gross receipts history necessary for assessment. Reporting information on Gross
Receipts Deposit accounts are required to be provided by April 30 and the data received is then assessed
for the initial fiscal year period and then projected (annualized) for calculation of the following renewal
fiscal year. Deposit amounts are then applied accordingly. Any unpaid net assessment remaining is
billed without penalty or interest. After a full calendar year of operation, subsequent renewals are
calculated based on the prior year's gross receipts. Gross Receipts Deposit Renewals become
delinquent if not paid by the May 1 of each year.
Variable Flat Rate Assessment Accounts
Variable Flat Rate taxes are required to be paid annually and are due and payable on June 1 of every
year. Variable Flat Rate licenses shall become delinquent if not paid by July 1 of each year.
The Table below gives some statistical information relating to the volume involved in the Variable Flat
rate renewals broken down into their various business tax groups as of July 31, 2023.
City of Santa Ana RFP No. 23-165 Page 42 of 196
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Billboards 5
Coin Operated Machines 60
Peddler/Solicitor with 16
Employees
Shoeshine Stand 1
Taxi Cabs 7
Vehicle (Catering, Ice 312
Cream,Produce,Junk)
Vehicles (Ambulances) 131
Vehicles (Delivery, Tow 131
Trucks, Trucking
Totals: 594
5
0
4
1
0
60
0
27
33
0
16
0
10
6
1
1
0
0
1
0
7
0
6
1
0
312
0
16
296
87
131
0
74
57
17
313
0
74
57
17
594
0
137
457
111
Variable Flat Rate renewals are prepared starting in mid -April to ensure that they are mailed out in by
their mailing due date of May 15.
City of Santa Ana RFP No. 23-165 Page 43 of 196
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Vending Machines rate calculation instructions:
The following instructions will help you determine your business tax assessment due. The business tax renewal is based on the number of coin -operated machines that
will be maintained within the City during the licensing period of July 1, 2023 through June 30, 2024. To renew your license and calculate your business tax assessment,
follow these steps:
Step #1: Vending Machines requiring $0.25 cents or more to operate - Enter the number of machines that will be maintained in the City during the licensing
period on the first line located on the lower right-hand side of the front of the Business Tax Renewal Notice.
Step #2: Enter the first machine on Line A and any additional machines on Line B . Multiply these numbers by the corresponding rate and enter the total an the space
provided.
Step #3: Add the total tax assessments from Lines A, and B and enter as subtotal on Line C.
Step #4: Add the tax subtotal on Line C, the registration fee on Line D and the state fee an Line E and enter total an Line F.
Step #5: Add or subtract previous balance, if reflected on Line G, and enter total tax owing on Line H.
Step #6: Enter the total tax & fees amount owing on the line labeled "Total Amount Enclosed' located on the front right -hand side of the Business Tax Renewal Notice.
Step #7: Sign & date the Notice and remit it along with your payment by due date.
TAX TABLE WORKS HEET
A. First machine (25 cents or more)
B. Number of additional machines (25 cents or more)
C. Tax Subtotal (Add lines A, and B)
D. Add Renewal Registration Fee
E. Add State of California Disability Access and Education Fund Fee
F. Subtotal (Add lines C, D and E)
G. Add/Subtract Previous Balance
H. Total tax amount owing (Add lines G and H)
x $ 25.00 =
x $ 13.00 =
+ 15.00
+ 4.00
+ 0.00
City of Santa Ana RFP No. 23-165 Page 44 of 196
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Vehicles (Catering Trucks, Produce Trucks, Ice Cream Trucks, Junk Collection Vehicles) rate
calculation instructions:
VARIABLE FLAT RATE RENEWAL INSTRUCTIONS
VEHICLES (Catering Trucks, Produce Trucks, Ice Cream Trucks, Junk Collection Vehicles @ $260.00 each)
The following instructions will help you determine your business tax assessment due. The business tax renewal is based on the number of vehicles that will be
operating within the City during the licensing period of July 1, 2023 through June 30, 2024. To renew your license and calculate your business tax assessment , follow
these steps:
Step #1: Enter the number of vehicles that will be operating in the City during the licensing period on the appropriate line located on the front right-hand side of the
Business Tax Renewal Notice.
Step #2: Enter the number of vehicles, (determined in Step 41 above), on Line A of the Tax Table Worksheet below. Multiply that number by the corresponding rate and
enter total on the space provided.
Step #3: Add the Tax Subtotal on Line A, the registration fee on Line B and the state fee on Line C and enter total on Line ❑.
Step #4: Add or subtract previous balance, if reflected on Line E, and enter total tax owing on Line F.
Step #5: Enter the total tax amount owing on the line labeled "Total Amount Enclosed` located on the front right -hand side of the Business Tax Renewal Notice _
Step #6: Sign & date the Notice and remit it along with your payment by due date.
TAX TABLE WORKSHEET
A. Number of vehicles
B. Add Renewal Registration Fee
C. Add State of California Disability Access and Education Fund Fee
D_ Subtotal (Add lines A, B and C)
E. Add/Subtract Previous Balance
F. Total tax amount owing (Add lines D and E)
x $ 250.00 =
Tax Exempt / Tax & Fee Exempt Accounts
Tax Exempt / Tax & Fee Exempt Accounts are broken into two categories:
+ 15.00
+ a nn
+ 0.00
• Tax Exempt Accounts - (Non-profit, Not For Profit, Charitable Organizations, etc.) are required to
renew annually on the March 1 of each year. Tax Exempt accounts become delinquent if not paid
by April 1 of each year. However, because penalties and Interest are only assessed on "taxes",
Tax Exempt accounts are not assessed penalty or interest charges. They are liable, however, for
annual registration charges (i.e., Application Processing Charge /Renewal Processing Charge).
Tax Exempt accounts are generated and mailed out on or about February 15 of each year.
• Tax and Fee Exempt Accounts — (Federal, State and County Government, Banks, Insurance
Companies, Alcohol Beverage Control businesses, PUC Licensees, etc.) Because these types
of accounts do not generate any revenue subject to local business license tax and are in some
cases are governmental in nature, they only receive a business license for Administrative
purposes and are not subject to a regular annual renewal filing. Likewise, they are not subject to
registrations charges. These accounts are processed without system generated information
exchanges with the account holders.
City of Santa Ana UP No. 23-165 Page 45 of 196
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Non-profit and Charitable Organization Accounts
Non-profit organizations or institutions which are eligible for an exemption from payment of federal
income taxes under Section 501 of the Federal Internal Revenue Code as amended from time to time
and/or exemption from the payment of state income taxes under Section 23701 et seq. of the California
Revenue and Taxation Code as amended from time to time are exempt. However, institutions or
organizations claiming a license fee exemption under this section have the burden of furnishing to the
collector such information as the collector may require to support the claim of eligibility for exemption
annually.
The Table below gives some statistical information relating to the volume involved in the Tax and Fee
Exempt as well as Tax-exempt accounts. The information below is as of July 31, 2023.
Tax and Fee Exempt 2226 2226 0 35 2191 1162
Tax Exempt 386 386 0 34 352 33
(Non -Profit)
Total:
2612 2612 0 69 2543 1195
Unlicensed Businesses: Pre -Business Licensing Activities
The City aggregates and discretely mails notifications to potentially unlicensed business identified using
a variety of in-house and third party data sources that include, but are not limited to:
• FTB Filing Data (FTB)
• DBA Filing Data (Lireco)
• Secretary of State Filing Data (SOS/Business Entity Filing Data)
• Sales & Use Tax Allocation Data (CDFTA/Avenue Insights)
• Sales & Use Tax AB990 Registration Data (CDTFA)
• Tenant Roster Data (In-House/Commercial Landlord Filings)
• Commercial Property Rental Data (Tax Assessor/Coren & Cone)
• Residential Property Rental Data (Tax Assessor/Coren & Cone)
• Residential Property Rental Data (In House/MUS)
This data is parsed, scrubbed, and conformed via Access Database Table filtering and Excel
Spreadsheet functions for mail merge deployment and then uploaded to a VB6/Crystal Reports
application — Business License Information Program (BLIP) for letter generation, response tracking, and
account creation.
Due Dates
Any renewal due date falling on a weekend, City holiday, or City Hall closure date are carried forward to
the next City working day. Any payment postmarked by the effective Due Date is deemed "timely" even
if received after the Due Date.
City of Santa Ana RFP No. 23-165 Page 46 of 196
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Original Delinquency
Any business which originally fails to obtain their required business license before initially commencing
or carrying -on or transacting business in the City is subject to a 50% original delinquency penalty. This
penalty, however, is abatable when the subject business responses in a timely fashion (by the last date
of the month following the month in which notice is given) to a demand to obtain a business license and
then applies for the required business license (and pays) for its in arrears taxes. See SAMC Sections
21-25 and 21-80.1. (Note: In the case of Original Delinquency, no interest charges are assessed.)
Past Due Penalties & Interest
Any bill received or bearing a postmark after the due date will be assessed past due penalties and interest
according to the following cumulative table: At the 4th month, interest is calculated on the unpaid tax
and penalty as a merged total.*
• Upon the 1st Month's Delinquency: _ $ 10.00 or 10% of the unpaid tax (whichever is greater), and
1 % interest on unpaid tax, plus
• Upon the 2nd Month's Delinquency: _ $ 15.00 or 15% of the unpaid tax (whichever is greater),
and 1 % interest on unpaid tax, plus
• Upon the 3rd Month's Delinquency: _ $ 25.00 or 25% of the unpaid tax (whichever is greater),
and 1 % interest on unpaid tax, plus
• Upon the 4th Month's Delinquency: _ $ 50.00 or 50% of the unpaid tax (whichever is greater),
and 1 % interest on the merged balance, plus
• An additional 1 % interest on the merged balance continuing for each month thereafter.
Forced estimated accounts
All accounts not reporting the required tax assessment values subsequently receive a Forced
Assessment value and are billed (including initial penalty & interest assessment) accordingly. Forced
estimations are nominally based on the following criteria:
The average gross receipts amount (or other assessment criteria) reported for the same
assessment period by similarly classified business, or
The amount of the previously years' reported gross receipts (or other assessment criteria)
adjusted for the annual increase in the local CPI, as applicable.
Annual CPI Adjustment
Some business license tax rates, charges, administrative fees, and deposits are adjusted annually for
the net change (+/-) in the Los Angeles -Anaheim -Riverside All Urban Consumer CPI (1982 = 100%)
computed from the base period beginning June 30, 1987 and ending each October 31 (Measure W reset
the rates in 2022). Adjusted rates are then entered into the BTS rate table in November of each year for
all the different types of assessment accounts (Flat Rate, Fixed Variable Flat Rate, Gross Receipts, and
Variable Flat Rate, etc.)
Apportionment
• Prima Facie Apportionment
Whenever an out-of-town (non-resident) business transacts and carries -on business within the City of
Santa Ana it may apply to be assessed on a gross receipts basis (whetherit is nominally a Gross Receipts
Rate Assessment business or not) based on its gross receipts solely generated within the City of Santa
Ana.
Burden on Interstate or Intercity Commerce; Petition for Adjustment
Whenever a business license tax is claimed by a licensee, or applicant for business license to place an
undue burden upon interstate or intercity commerce, or be violative of the constitutions of the United
States and/or the State of California, the applicant or licensee can petition the Collector for an adjustment
City of Santa Ana RFP No. 23-165 Page 47 of 196
(9)
of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application
may be made before, at, or within six (6) months after payment of the prescribed license tax. The
applicant shall by affidavit and supporting testimony show his or her method of business and the gross
volume or estimated gross volume of business and such other information as the Collector may deem
necessary in order to determine the extent, if any, of undue burden on such commerce.
• Burden on Interstate or Intercity Commerce; Election of Apportionment Rules
Whenever a business license tax is claimed by a licensee, or applicant for business license to place an
undue burden upon interstate or intercity commerce, or be violative of the constitutions of the United
States and/or the State of California and the City has provided an Apportionment Rule, the applicant or
licensee can petition the City to have such rule applied to their business license tax assessment.
Issuance of Business License Tax Receipts (aka Business Tax Certificates)
The current BTS application has several safe guards against releasing a Business License Tax Receipt
unless all of the predetermined requirements are met. Primarily this comes in the form of such things as
payment, Certificate of Occupancy issuance for commercial locations and Home Occupation Permit
issuance for residential based businesses. Additionally, there can be holds due to lack of submitting
Sellers permit information or other assessments values or State mandated requirements such as SB 205.
FOR PROPOSERS' REFERENCE ONLY
City of Santa Ana RFP No. 23-165 Page 48 of 196
0
EXHIBIT IV
CITY OF SANTA ANA MEDICAL MARIJUANA AND COMMERCIAL CANNABIS BUSINESS
LICENSE TAXATION OVERVIEW
Below is a brief overview of the functions relating to the City of Santa Ana's business license taxation of
Medical Marijuana and Commercial Cannabis operations - Chapter 21, Article XII and Article XIII of the
Santa Ana Municipal Code, respectively. (Note: the tax treatment afforded both types of cannabis
operation - medicinal and non -medicinal - are generally similar but differ somewhat in detail between
the two types, and with respect to Commercial Cannabis - between categories of operations as well.)
Medical Marijuana
• Currently, the City has 24 licensed Medical Marijuana operators.
• All Medical Marijuana businesses are required to have an active "basic" Business License Tax
account, currently assessed at $2,019 annually, which is pro -ratable by quarters depending on
the business start date. This Annual Business "Basic" License Tax consists of:
0 $2,000 Base Fee (Not subject to annual CPI adjustment)
0 15 Registration Fee (Application Process Charge/Renewal Processing Charge)
o $44 SB 1168 (State) Fee
• Medical Marijuana business license accounts fall under the "Gross Receipts" category of
assessment and annual basic tax fees are assessed based on an April 1 thru March 31 fiscal
tax year.
• All Medical Marijuana businesses are also subject to a monthly gross receipts tax in addition to
the Annual Business License Tax Basic Fees.
• The monthly tax rate is 5% of the monthly gross receipts (or gross sales) as reported by the
Medical Marijuana operator. (Not subject to annual CPI adjustment)
• The monthly tax remittance is due on the last day of the month following the month for which the
revenue is being reported.
• A monthly tax form, which is automatically system generated, is sent to all Medical Marijuana
businesses at the beginning of each month requesting that they report the total gross sales for
the month prior and calculate the tax due.
• Any monthly tax remittance paid, postmarked or reported after the due date is subject to the
following cumulative penalty and interest fee structure:
0 1st Month's Delinquency: = $ 10.00 or 10% of the unpaid tax (whichever is greater), and
1 % interest on unpaid tax, plus
0 2nd Month's Delinquency: = $ 15.00 or 15% of the unpaid tax (whichever is greater), and
1 % interest on unpaid tax, plus
0 3rd Month's Delinquency: = $ 25.00 or 25% of the unpaid tax (whichever is greater), and
1 % interest on unpaid tax, plus
0 4th Month's Delinquency: = $ 50.00 or 50% of the unpaid tax (whichever is greater), and
1 % interest on the merged balance, plus
o An additional 1 % interest on the merged balance continuing for each month thereafter.
• Business License Tax accounts are contingent on having first procured the prerequisites,
including Certificate of Occupancy permit with the Planning & Building Agency, Regulatory
Safety Permit with Code Enforcement and a State Seller's Permit. (The Planning & Building
Agency Certificate of Occupancy and Regulatory Safety Permit fees do not represent
assessable business license taxes, charges, or administrative fees.)
City of Santa Ana RFP No. 23-165 Page 49 of 196
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• All Medical Marijuana businesses are subject to a closeout audit in the event of a transfer of
ownership before the new owner can establish their business license account.
Commercial Cannabis
• Commercial Cannabis businesses consist of the following cannabis activities:
o Adult -Use Retail (including Delivery)
o Consumption Lounge
o Cultivation
o Manufacturing
o Microbusiness
o Shared Manufacturing
o Special Events/Festivals
o Testing Lab
• Currently, the City has 132 licensed commercial cannabis operators. Of those 132 licensees,
there are:
0 27 Adult -Use Retail businesses
0 17 Cultivation businesses
0 41 Distribution businesses
0 17 Manufacturing businesses
0 5 Shared Manufacturing businesses
0 1 Testing Lab business
• All Commercial Cannabis businesses are required to have an active "basic" Business License
Tax account, currently assessed at $2,019 annually, which is pro -ratable by quarters
depending on the business start date. This Annual Business "Basic" License Tax consists of:
0 $2,000 Base Fee (Not subject to annual CPI adjustment)
0 15 Registration Fee (Application Process Charge/Renewal Processing Charge)
o $44 SB 1168 (State) Fee
• Commercial Cannabis business license accounts fall under the "Gross Receipts" category of
assessment and annual basic tax fees are assessed based on an April 1 thru March 31 fiscal
tax year.
• All Commercial Cannabis businesses are also subject to a monthly gross receipts tax in
addition to the Annual Business License Tax Basic Fees.
• The monthly tax rate set forth for each Commercial Cannabis business is based on the monthly
gross sales (as reported by the operator) for the month prior, or a calculation based on the total
square footage of the business' property location (as confirmed by the corresponding "approved
building set" or "approved certificate of occupancy" on file with the City of Santa Ana Planning
and Building Agency), whichever is greater. The gross square footage calculation rate does not
apply to Commercial Cannabis businesses located outside of the City limits, Shared
Manufacturing businesses and Temporary Events/Festivals.
• The monthly tax rates and gross square footage calculations for each Commercial Cannabis
business activity type are as follows: (Not subject to annual CPI adjustment)
Commercial Cannabis Business
Gross Receipts Tax
31ross Square
Activity
Rate
Footage Tax Rate
Adult -use Cannabis Retail Business
(including Delivery)
%
$25.00
Consumption Lounge
%
$0.00
City of Santa Ana RFP No. 23-165 Page 50 of 196
(9)
Cultivation
1 %
$7.00
Distribution
1 %
$3.00
Manufacturing
1 %
$3.00
dult-Use Retail
Adult -Use Retail
25.00
Microbusiness
ultivation,
Distribution,
Cultivation
Manufacturing
7.00
1%
Shared Manufacturing
1 %
$0.00
Testing Facility or Testing Laboratory
1 %
$1.50
The Gross Square Footage calculation is prorated monthly to 1/12th of the annual tax rate
amount (business location square footage, times the Gross Square Footage rate, divided by
12).
A monthly tax form, which is automatically system generated, is sent to all Commercial
Cannabis businesses at the beginning of each month requesting that they report the total gross
sales for the month prior and calculate the tax due based on the percentage rate or square
footage rate (whichever is greater).
Any monthly tax remittance paid, postmarked or reported after the due date is subject to the
following cumulative penalty and interest fee structure:
0 1st Month's Delinquency: _ $ 10.00 or 10% of the unpaid tax (whichever is greater), and
1 % interest on unpaid tax, plus
0 2nd Month's Delinquency: _ $ 15.00 or 15% of the unpaid tax (whichever is greater), and
1 % interest on unpaid tax, plus
0 3rd Month's Delinquency: _ $ 25.00 or 25% of the unpaid tax (whichever is greater), and
1 % interest on unpaid tax, plus
0 4th Month's Delinquency: _ $ 50.00 or 50% of the unpaid tax (whichever is greater), and
1 % interest on the merged balance, plus
o An additional 1 % interest on the merged balance continuing for each month thereafter
Business License Tax accounts are contingent on having first procured the prerequisites,
including the Certificate of Occupancy Permit with the Planning & Building Agency, Regulatory
Safety Permit with Code Enforcement and a State Seller's Permit with the California Department
of Tax & Fee Administration. (The Planning & Building Agency Certificate of Occupancy and
Regulatory Safety Permit fees do not represent assessable business license taxes, charges, or
administrative fees.)
Commercial Cannabis businesses that share at least 80% underlying common ownership can
be categorized as vertically or horizontally integrated.
Vertical and horizontal integration are defined as follows:
o Vertical integration shall refer to cannabis businesses operating at different points in the
same supply chain from cultivation to retail sales, as long as they share at least 80%
City of Santa Ana RFP No. 23-165 Page 51 of 196
(9)
underlying common ownership, regardless of form of business structure, and are
engaged in interparty sales and/or transfers of goods.
o Horizontal integration shall refer to cannabis businesses operating at the same point in
the same supply chain, as long as they share at least 80% underlying common
ownership, regardless of form of business structure, and are engaged in interparty sales
and/or transfers of goods.
Commercial Cannabis businesses that are vertically or horizontally integrated are subject to:
o Business License Tax Security Deposit
All Commercial Cannabis businesses are subject to a closeout audit in the event of a transfer of
ownership before the new owner can establish their business license account.
FOR PROPOSERS' REFERENCE ONLY
City of Santa Ana RFP No. 23-165 Page 52 of 196
(9)
EXHIBIT V
CITY OF SANTA ANA GENERAL UTILITY USERS' TAXATION OVERVIEW
City of Santa Ana
Utility Users' Tax Monthly Tax Remittance Procedures
I. Monthly Tax Remittance:
1. Utility Users' Tax (UUT) is a 5.5% tax charged by all utility service providers (electric, gas,
telecommunications and water) and remitted to the City on a monthly basis. UUT remittance is
due on the 20th day of every month.
2. Monthly remittance tax forms are automatically generated based on the active UUT utility service
providers registered in the UUT database (UUT system). Currently, there are 353 active utility
service providers registered in the UUT system.
3. Monthly remittance tax forms are mailed to each service provider or designated tax preparer (see
attached sample).
4. Persons or businesses excluded from UUT assessment by operation of state or federal law
include:
a. Insurance companies, their direct agents and the active investments (other businesses
or commercial rental properties) directly owed by insurance companies.
b. Government agencies, public corporations, public schools, state universities and college
districts.
II. Remitting and Processing Payments:
1. Most UUT payments are remitted via check, which is mailed in along with the completed
remittance tax form; however, some utility service providers will email the form and remit payment
electronically via ACH.
2. When the monthly remittance tax form is received, the reported revenue figures are verified for
accurate reporting and calculation and recorded into the UUT system. The check is processed
by Treasury Services remittance processor or can also be processed at the cashier counter with
an accompanying billing statement.
3. Any discrepancies (overages, shortages, calculation errors, missing/wrong tax remittance form,
etc.) will result in a letter to the service provider or tax preparer requesting to resolve the issue.
Shortages and calculation errors or late payments that are postmarked after the 20th day of the
month are subject to penalty and interest charges.
a. Penalty charges are calculated at 15% of the tax amount owed
b. Interest charges are calculated at 0.75% of the tax amount owed per month
III. Remittance Tracking:
1. The revenues reported on the monthly tax remittance form are recorded into the UUT system.
Once the revenue figures have been entered, the UUT system will calculate the fees to verify the
information entered was accurate. If the calculations match, the revenue is recorded and a charge
for the tax amount due is created. If the revenues do not match, the system will indicate the
correct calculations in red. The revenue may still be saved as was reported by the hotel operator
or tax preparer, but the charge created will be based on the correct calculations.
2. Once the revenues have been recorded, the monthly tax remittance form is scanned into
LaserFiche in the Utility Users' Tax folder, then into the corresponding sub -folder for the reporting
period being remitted. Each service provider is assigned an account number; the scanned reports
are saved into the folder for the corresponding reporting period and sorted by account number.
City of Santa Ana RFP No. 23-165 Page 53 of 196
(9)
3. A master spreadsheet is also maintained to show the UUT revenue remitted for every month and
every utility category. This spreadsheet shows the revenues received for the current fiscal year
period, as well as the previous fiscal year period to allow year-to-year comparisons.
a. This master spreadsheet is regularly updated and saved in a shared directory (I:\UTILITY
USERS TAX\UUT Monthly Stats) where it can be accessed by authorized staff members
in the Tax & Licensing Section.
b. The master spreadsheet is also used as a reconciliation tool to be matched up against
revenue reported to Lawson as it contains the raw data as reported by the service provider
or tax preparer.
4. In addition to the master spreadsheet, the UUT system also has the capability of generating
financial reports:
a. The `Monthly Audit Report' is a report that provides detailed payment information for all
utility service providers, including reporting period, due date, amount paid, date payment
was received and can be generated for any period entering specific parameters (Start
Date and End Date).
b. `Service Type Revenue Utility Users' Tax Report' which can be generated by entering
specific parameters (Start Date, End Date and Service Type) and will provide the total
payment amount(s) recorded in UUT for each individual service provider based on the
utility service type. This is also used as a reconciliation tool in concert with the master
spreadsheet.
5. The UUT Code provides for an exemption from the monthly UUT assessment for residents whose
maximum income levels fall within the following parameters:
Family Size Maximum Income Family Size Maximum Income
1 $ 14,300.00 4 $ 20,200.00
2 $ 14,300.00 5 $ 23,500.00
3 $ 16,900.00 6 or more $ 26,800.00 Plus $3,300.00
per person in excess of six
Low Income Exemption applications are required to be filed by May 30t" of each year and take
effect for the fiscal year beginning July 1.
City of Santa Ana RFP No. 23-165 Page 54 of 196
(9)
MONTHLY UTLITY USERS TAX REPORT
ACC43UFR NUMBER REFORTtd6 PERIDD:
VTILITY PRCMDER FLAME
STREET &nDREBB: DV E
4 44=1 IU] :1lq&-1 91"IDr2I6
7_ 13R089CHA03ES:................................................................................................ #
2- LESS ALLDYN4ii FF CF-OLFMONE
WTazEurn•4t RrJenue:..........................__________...............................______ 4.
(BFTcU Oine•Non-Taxed:...................................................... .........
4.
3_ TOTAL DEDIJ CT1ON8 iLYre hP us Liar B}:.__________....................___................__.............................._____.
4. TA)AELE DHLARGE(Lbe I nYnur Line 3k .................._______________________________.........._____________________________-
S NET TAXJS.S%OfLbr4):..........__________.....................______________________________.........._______...__________
E, LATE PENALTIES 05%): ________.........._________..__________............
7_ LATE NTEREBT LD.75% Rr mmthk...................... .............................................................
& TOTAL AMDVNT DUE (Sum of 111es5 trough 7k .......................... .............................. ........
ceclsre undw the peney of pequy, Mel inc ia•egotQ smlemenls are Ave, miTxl, and :cr•plele is Im bed or my YnWedge end be W.
:34GKATURE 0FAUTFIOR0M AGENT
TITLE
NINE OFAU7HORMO A13ENT Wkme Pdrrt) TE-EFFONE 4UMBER FAX NUMBER
LLV L BTATEMENTAND FhYMENTTO: -OfTY OF aAFITA ARA VnLITY USERS TAX, LIA 5, PO SDX 19K aANTAAKAGA927{ "H A. GENERAL QUEaT IDNB
REaARDINO THIS FORM DR THE AFTILJTY USERS TAX SHOULD BE DIRECTED TO 914} fi47-544&
CITY OF SANTAANA
�•' I' CfTY OF SANTALhNA
II 20 CNCENTER Ct3YTER PLJ4Z/5-PO EOiS 1954,iF15
SANMUNA, CALFDMLA 9yTJgi-1%4
FHDNE NUMBER 914} E47-5W
Busi ness Name
Attention: First Last
<<Mailing Addtess>>
<<City, State, Zip Code: -
ACCOUNT NUMBER
UTILrrYPROYIDER NAME:
STREETADDRESS: 4
REPORT NG PERIM
DUE DATE:
PAIDAMT [LME BABOVEY
❑o❑❑❑❑o❑o❑oo❑o❑❑❑❑ono❑❑❑❑o❑❑❑❑o❑o❑❑❑❑ono❑
FOR PROPOSERS' REFERENCE ONLY
City of Santa Ana RFP No. 23-165 Page 55 of 196
(9)
EXHIBIT VI
CITY OF SANTA ANA GENERAL HOTEL VISITORS' TAXATION OVERVIEW
City of Santa Ana
Hotel Visitors' Tax Monthly Tax Remittance Procedures
I. Monthly Tax Remittance:
1. Hotel Visitors' Tax (HVT) is an 11 % tax charged by all hotel operators for any guest stay and
remitted to the City on a monthly basis. HVT remittance is due on the last day of every month.
2. Monthly remittance tax forms are automatically generated based on the active HVT accounts
registered in the HVT database (HVT system). Currently, there are 34 active accounts registered
in the HVT system.
3. Monthly remittance tax forms are mailed to each hotel operator or designated tax preparer (see
attached sample).
II. Remitting and Processing Payments:
1. Most HVT payments are remitted via check, which is mailed in along with the completed
remittance tax form; however, some hotel operators will come in person to remit payment at our
cashier station and provide the completed tax form.
2. When the monthly remittance tax form is received, the reported revenue figures are verified for
accurate reporting and calculation and recorded into the HVT system. The check is processed
by Treasury Services remittance processor or can also be processed at the cashier counter with
an accompanying billing statement.
3. Any discrepancies (overages, shortages, calculation errors, missing/wrong tax remittance form,
etc.) will result in a letter to the service provider or tax preparer requesting to resolve the issue.
Shortages and calculation errors or late payments that are postmarked after the last day of the
month are subject to penalty and interest charges.
a. Penalty charges are calculated at 10% of the tax amount owed
b. Interest charges are calculated at 1.5% of the tax amount owed per month
III. Remittance Tracking:
1. The revenues reported on the monthly tax remittance form are recorded into the HVT system.
Once the revenue figures have been entered, the HVT system will calculate the fees to verify the
information entered is accurate. If the calculations match, the revenue is recorded and a charge
for the tax amount due is created. If the revenues do not match, the system will indicate the
correct calculations in red. The revenue may still be saved as was reported by the hotel operator
or tax preparer, but the charge created will be based on the correct calculations.
2. Once the revenues have been recorded, the monthly tax remittance form is scanned into
LaserFiche in the Hotel Visitors' Tax folder, then into the corresponding sub -folder for the
reporting period being remitted. Each hotel is assigned an account number; the scanned reports
are saved into the folder for the corresponding reporting period and sorted by account number.
3. A master spreadsheet is also maintained to show the HVT revenue remitted for every month and
every hotel. This spreadsheet shows the revenues received for the current fiscal year period, as
well as the previous fiscal year period to allow year-to-year comparisons.
a. This master spreadsheet is regularly updated and saved in a shared directory (I:\Hotel
Visitor's Tax\HVT Monthly Stats) where it can be accessed by authorized staff members
in the Tax & Licensing Section.
City of Santa Ana RFP No. 23-165 Page 56 of 196
(9)
b. The master spreadsheet is also used as a reconciliation tool to be matched up against
revenue reported to Lawson as it contains the raw data as reported by the hotel operator
or tax preparer.
4. In addition to the master spreadsheet, the HVT system also has the capability of generating
financial reports:
a. The `Monthly Audit Report' is a report that provides detailed payment information for all
hotels, including reporting period, due date, amount paid, date payment was received and
can be generated for any period entering specific parameters (Start Date and End Date).
b. The `Payment Summary' report is less detailed; however, it will give a cumulative total of
the payments received from each hotel based on the parameters entered (Start Date and
End Date). This differs from the `Monthly Audit Report' in that it does not give a breakdown
of each payment received by a single hotel, for what reporting period and when the
payment was received.
c. Both of these reports are also used as a reconciliation tool in concert with the master
spreadsheet.
City of Santa Ana RFP No. 23-165 Page 57 of 196
(9)
ACCOUNT NUMBER REP4RTN€3 PERIOD: TO
HGTELfMOTEL NAME'_
PAb1PEFrr9r ADDRESS: C4fE:
SEE REVERSE SIDE OF 7HIS FORM FOR INSTRUCTIONS
1} TOTALNUYBE7t OFHOTELfMCTELRO7M8: R) TOTAL NU\A�ER OF:]OM5'NI-i PERhIANEHT RE8I0ENTS,
.r.=rttb..lxn FIERIAME TREUNNT—bnUXT13HK-1h. H.�lih4ni
I- GROSS RENT FOR ALL ROOMS................................................................................................................. 5
2. LE2BALLOWABLE13E13UG7KM:
d Poet Flom Pemenent Reskerb {See 9487RUC-T13N X2a- as+ese:kk d ENs item} ;
GoNernmelrl ErrploMEYempIIom {See NBTRUOTICNX2b- as+ese:kk d tNs item} i
r_ Qthe ExcmYlons {See NBTRLOTICNX21-n-mse stle oT this fo" ;
]L TOTAL OEDLIGT]ONB iLkne A ptus Une Bills LireQ ...... .................................... i
4_ TAXA13LE IEWra R-Yle 1 mhus Lrrc 3] ........ ................... ...... i
5- IETTAXjll%Of LFrt4j .............................................................. _....... ........................................... i
NL LATEPENPLTIE8410%) {See NBTRUOTICN XS- revesc skis afttls lxmj .................. ............ €
7_ NTEREST irH&RBE f1.3% Pc• Month} {See NBTRUOTICN XS- resew skk of ltls iorm................... ............ 5
L TOTAL AMOUhR ELIE{Sum arLlnes 51roullh 71—......... .............................................. ............... 5
Imawe under me pKwft'N ps", "me rampmv slgdeRJ m aye" m eq anacal74 we b me bemcirmykwwjadgean m.Aw
810NATURE OF HOTEUMOTEL AUTHORIZED A13ENf
PR/YT NALE OF HGTEUMOTEL.ALITMR12E0 AAEW
DATE
TIE EPHONE NUMEBt EXT- X
h4UL STATEMENT AND PAYMEWTO: CITY OF aAINTAAK&HG7EL%nSr C]RB TAX, LHS. Pa BDX 19K BANTA ANA4 Ch97N1-1 WA.
GENERAL CKN=ONB REGARDING 71# FORM ORTFE EIOTEL VIBrrDRS TAX B44GUL13 BE GIRE=13 TC: t714] 647-54M.
CITY OF SANTA ANA
CITY OF 8 NTA ANA
,1 20 CWl, C>EITER FLi3A - Pa BDX 1964, M-15
r �{ BANTAhN& CALIFORNIARZK11 -IN4
'tiLtiiiiSi3a7� PHONE NUMBER FS41647i494
AF
ACCOUN-NUMBED
HOTELAMOTEL ✓MAkIE:
PROPERTY ADDRESS:
REPORTING PERIOD- TO
DUE DATE:
PAID AI IT (LINE a ABCV4
FOR PROPOSERS' REFERENCE ONLY
City of Santa Ana RFP No. 23-165 Page 58 of 196
0
EXHIBIT VII
CITY OF SANTA ANA GENERAL TOURISM MARKETING DISTRICT OVERVIEW
City of Santa Ana Tourism Marketing District
Monthly Assessment Remittance Procedures
I. Monthly Assessment Remittance:
1. Tourism Marketing District (TMD) assessment is a 2% fee charged by all hotel operators with 70
rooms or more located within certain boundaries of the City and remitted to the City on a monthly
basis. TMD remittance is due on the last day of every month.
2. Monthly remittance reporting forms are automatically generated based on the active TMD
accounts registered in the TMD database (TMD system). Currently, there are 17 active accounts
registered in the TMD system.
3. Monthly remittance reporting forms are mailed to each hotel operator or designated tax preparer
(see attached sample).
II. Remitting and Processing Payments:
1. Most TMD payments are remitted via check, which is mailed in along with the completed
remittance reporting form; however, some hotel operators will come in person to remit payment
at our cashier station and provide the completed reporting form.
2. When the monthly remittance reporting form is received, the reported revenue figures are verified
for accurate reporting and calculation and recorded into the TMD system. The check is processed
by Treasury Services remittance processor or can also be processed at the cashier counter with
an accompanying billing statement.
3. Any discrepancies (overages, shortages, calculation errors, missing/wrong remittance reporting
form, etc.) will result in a letter to the service provider or tax preparer requesting to resolve the
issue. Shortages and calculation errors or late payments that are postmarked after the last day
of the month are subject to penalty and interest charges.
a. Penalty charges are calculated at 10% of the tax amount owed
b. Interest charges are calculated at 1.5% of the tax amount owed per month
III. Remittance Tracking:
1. The revenues reported on the monthly remittance reporting form are recorded into the TMD
system. Once the revenue figures have been entered, the TMD system will calculate the fees to
verify the information entered is accurate. If the calculations match, the revenue is recorded and
a charge for the amount due is created. If the revenues do not match, the system will indicate
the correct calculations in red. The revenue may still be saved as was reported by the hotel
operator or tax preparer, but the charge created will be based on the correct calculations.
2. Once the revenues have been recorded, the monthly remittance reporting form is scanned into
LaserFiche in the Tourism Marketing District folder, then into the corresponding sub -folder for the
reporting period being remitted. Each hotel is assigned an account number; the scanned reports
are saved into the folder for the corresponding reporting period and sorted by account number.
3. The TMD system also has the capability of generating financial reports:
a. The `Monthly Audit Report' is a report that provides detailed payment information for all
hotels, including reporting period, due date, amount paid, date payment was received and
can be generated for any period entering specific parameters (Start Date and End Date).
b. The `Payment Summary' report is less detailed; however, it will give a cumulative total of
the payments received from each hotel based on the parameters entered (Start Date and
End Date). This differs from the `Monthly Audit Report' in that it does not give a breakdown
City of Santa Ana RFP No. 23-165 Page 59 of 196
(9)
of each payment received by a single hotel, for what reporting period and when the
payment was received.
City of Santa Ana RFP No. 23-165 Page 60 of 196
(9)
MONTHLY 5ANTA ANA TOURISM MARKETING DISTRICT ASSESSMENT REPORT
ACODU T NUM99R'
REP{HT NG PERIXc TO
HOTEUMOTE1 NMIE
PROPERTY'ADDFE 2:
CUE:
SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS
TOTAL NUMBER OF HX0JL+OTEL
ROOMS: B) TOTAL NUMBER OF ROOMS WMIPER"EHTRESIDENT&
¢tra.r� aa�daca wxort aooexr �. srararr_�ox a �it�r .rai,r1onp
I. GROS3RENT'ORALLROGMB..................................... ...... _............................................
2. LM2ALLCWABLEDE0LW=NZk
IL Rcrt=rom Perr)mmtRcskkTb {S6L NBTRLr-TK)N XZj- rexrt 3ltlr A Ns lurmf 9
bh Godrynm" E"pk y e E3empticra {Nce NSTAUCTON X2D- reterse side d Ns lurm} #
3_ T0TALDEOUCr NB ILkwAplra LLKE] ........ ...._......................... Tr
4. ASSESSABLE REN`TB;LHe 1 rrirus LMe3} -. ......................... .................. I
S. PERCENrAGE RATE -C LLCULA7LDN G% ♦ FLkm 41-.................................................... ................ i
¢, LATE PEALNLMES {i M) .,Sec NSTRUG-=N X6 - �Yv SHE a'Nh iumj .............. ........
3. NTERESTCFLSRGE[i.�%PermGM fte NSIRUGTION%6- 2Vemo- slde ce ttts lum] .............. ........ ;
S. TOTAL AMD4JNT CUE pum of Llxs `- Brough 7] ............................ ......................... i
r, aLViufaed agler.2 07ie hc&017WEe, d&63m updLY th Felfaly oiFpe", that tlfe IlhTgno V uWMErlis dfe bTee. correct, aW corr**-tE f2b*
bev or my kluffkdge aqd mw..
SIGNATURE
PRP T NAME TELEPHONE NUMBER Exr.x
Mal stabe pert and paimud ln: CR{o"3anta Ara, Tbulsm M&ImUnp[NsM Assesm-eft.M-1E, PO GorI N1, Saran Ana, G49ZMl-1%4. For general querbxa
regardnp thls bm .calf(714r&L-S449. Gxs5repsrdtg the3anta Ana Tatt.m Markettg DlsWd Asseamerl sFti be dOertd to-:rM) E47-S3SS.
x9,d`D�F, CITY OF SANTA ANA
r.
•5 CM OF SAWrALANA
213 OND-2 OBITEi PLAZA -PO BOX 19U. MIS
SANfAAKA, C,aLFDRINLA 927M-ISE4
PHIOIVE NU7ABER I-M)647iN9
n
SANfAANATOURISM WLRKETING DISTRICT ASSESSMENT
i
ACCCRINT NUMEER
HOTELAK)TEI NAME:
PROPERTYADDRES3:
REPORTING PERIOB. TO
DUE DXn�
MD AW (LINE C ABOVE):
FOR PROPOSERS' REFERENCE ONLY
City of Santa Ana RFP No. 23-165 Page 61 of 196
(9)
EXHIBIT VIII
CITY OF SANTA ANA PROACTIVE RENTAL ENFORCEMENT PROGRAM (PREP)
Below is a brief overview of the City of Santa Ana's PREP Program — Chapter 8 Article X Division 2 of
the Santa Ana Municipal Code. (Note: the PREP is a program administered by the Planning and Building
Agency, Code Enforcement Division but utilizes the Business Tax System (BTS) for billing and customer
service information (CSI) purposes.] The current Business Tax System carries a one to one account ratio
between PREP accounts and its corresponding "residential rental" type Business Tax account.
Purpose
• Currently, the City has 7,225 PREP accounts accounting for 34,638 residential units and 35 Gold
Seal accounts for 4,437 units.
• PREP involves an inspection of residential rental units to ensure acceptable standards of zoning,
building, and fire code compliance.
• The purpose of the PREP inspection is to promote public health and safety for occupants living
in residential rentals within the City of Santa Ana through effective code enforcement of the Santa
Ana municipal code.
• Practice of this program reduces safety hazards for occupants by identifying and correcting code
violations within the building structure, including, plumbing, heating, and electrical systems.
• The PREP and Gold Seal Incentive Program new ordinance became effective July 1, 2016
(Ordinance No. 2898).
Fees
• PREP is currently assessed at $29.00 per unit, annually.
• All Residential Rentals are required to have a PREP account along with their Residential Rental
Business License; PREP accounts are created jointly with Residential Business licenses.
• The fee billing period for PREP is from July 1st — June 30th, with a due date of June 30tn
• Fees are not prorated.
• Any payment received after the due date without a postmark will be assessed past due penalties
from the following penalty and interest fee structure:
0 1st Month's Delinquency: = $ 10.00 or 10% of the unpaid tax (whichever is greater), and
1 % interest on unpaid tax, plus
0 2nd Month's Delinquency: = $ 15.00 or 15% of the unpaid tax (whichever is greater), and
0 1 % interest on unpaid tax, plus
0 3rd Month's Delinquency: = $ 25.00 or 25% of the unpaid tax (whichever is greater), and
1 % interest on unpaid tax, plus
0 4th Month's Delinquency: = $ 50.00 or 50% of the unpaid tax (whichever is greater), and
1 % interest on the merged balance, plus
o An additional 1 % interest on the merged balance continuing for each month thereafter
Inspection
• The property is inspected once every four years, unless, exempt from inspection by the division.
• Inspections consist of 3 different inspection levels with a standardized checklist applicable to all
inspection levels:
o Level One Inspection: only the exterior of the property will be inspected; violations may
include: trash, poor landscaping, lack of paint, unapproved exterior alterations.
o Level Two Inspection: may be used to inspect multi -family homes exterior, common areas,
and 20% of selected units.
City of Santa Ana RFP No. 23-165 Page 62 of 196
(9)
o Level Three Inspection: interior inspection of multifamily or single family properties.
INTEKIOK LOT ATTACHED GARAGE NOT FACING STREET
N
I
_property line
` rear yard
min.
1 f'1
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1
twOyGar 1 lana5cape
garage 23'-0 1 minimum
driveway in. I
� front yard max.
AL
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parkway
Street
Notice of inspection results are mailed to the property owner's address within 30 days of
inspection.
If a property owner is to receive Notice of Violation, Administrative Citation or Notice and Order,
they are to correct all noted violations before the compliance due date listed on the Notice of
Violation, Administrative Citation or Notice and Order to avoid citations or penalties and interest.
The owner must obtain applicable permits and pay permit fees and citations prior to receiving final
City approval of compliance.
SAMC CHAPTER 6— SINGLE-FAMILYRESIDENTIAL GUIDELINES (ONE -AND TWO-FAMILY UNITS)
Figure 6-54d. Examples of parking, access and circulation configurations
Exemptions
• Legal units or rooms rented to single individuals in an owner occupied single family residence.
• Immediate family members who are renting the residential unit and whose cost of rent does not
exceed the cost of maintaining legal ownership.
• Approved Gold Seal Incentive Program residential rental (Program having met excellence in
property maintenance; must be approved and valid for only 4 years)
FOR PROPOSERS' REFERENCE ONLY
City of Santa Ana RFP No. 23-165 Page 63 of 196
EXHIBIT IX
SANTA ANA MUNICIPAL CODE -CHAPTER 21 LICENSES
Chapter 21 LICENSES'
ARTICLE L DEFINITIONS
Sec. 21-1. Short title; purpose -Defined.
This chapter shall be known as the "Business License Tax Code." It is enacted solely to raise revenue for
municipal purposes and is not intended for regulation.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-2. Definitions -General.
Whenever any words or phrases used in this Chapter are not defined herein but are defined elsewhere in this
Code, such definitions are incorporated herein and shall apply to such words and phrases used in this Chapter
unless the content clearly indicates a different intent.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-3. Definitions -Specific.
As used in this Chapter, the following words, terms, or phrases shall have the meaning hereinafter set forth:
Annualization shall mean an estimation, extended for a twelve (12) month period, based on reported gross
receipts for a prior period of less than twelve (12) months.
'Editor's note(s)-Ord. No. NS-1922, adopted July 20, 1987, amended Ch. 21 in its entirety to read as herein set
out. Formerly Ch. 21, consisted of §§ 21-1-21-10, 21-21-21-27, 21-39-21-57, 21-69-21-72, 21-72a-21-
72d, 21-72f-21-72h, 21-72j, 21-72k, 21-72p, 21-72r-21-72t, 21-72w, 21-73, and 21-74, pertained to similar
subject matter and derived from 1952 Code §§ 4118, 6100, 6110, 6110.1, 6110.2, 6111, 6113-6116, 6116.1,
6116.2, 6116.4, 6116.5, 6117, 6120, 6120.1-6120.4, 6121, 6122, 6122.2, 6123, 6124, 6124.2-6124.4, 6125,
6125.1-6125.3, 6126, 6130, 6131, 6350, 6351.1, 6358.1-6358.3, 6358.5, 6358.6, and 6390.7, and the
following:
Ord. No.
Section
Date
Ord.No.
Section
Date
NS-118
7-18-SS
NS-1237
13
5-12-75
NS-545
1-16-61
NS-1239
1
12- 9-74
NS-718
1
2-17-64
NS-1401
1,2
1- 3-78
NS-766
1
12-21-74
NS-1690
1-16
7- 5-83
NS-815
1
8-16-65
NS-1754
1,2
12-17-84
NS-1176
2-4
11-19-73
NS-1823
1
12-16-85
NS-1235
3
12- 9-74
NS-1850
1
7- 7-86
Cross reference(s)-Firearms sales, § 10-500 et seq.
City of Santa Ana RFP No. 23-165 Page 64 of 196
Applicant shall mean any person who applies for a license or a license renewal under the provisions of this
Chapter.
Automobile dismantler shall mean any person who has an established place of business and is engaged in the
business of buying, selling, or dealing in vehicles of a type required to be registered pursuant to Section 220 of the
California Vehicle Code, as the same now exists or as hereafter amended, for the purpose of dismantling the same,
who buys or sells the integral parts and component materials thereof, in whole or in part, or deals in used motor
vehicle parts. This section does not apply to the occasional and incidental dismantling of vehicles by dealers who
have secured dealers' plates from the California Department of Motor Vehicles and whose principle business is
buying and selling new and used vehicles, or by owners who desire to dismantle not more than three (3) personal
vehicles within any twelve (12) month period.
Builder -owner shall mean any person employing subcontractors, specialty contractors, general engineering
contractors, or workers under his or her supervision and direction by the hour or day, for the purpose of
constructing improvements on real property owned by him or her within the city; such person shall be taxed
herein the same as a contractor unless his or her only building activity is constructing on his or her property a
single family dwelling unit or addition thereto which will be used in whole or in part for the purpose of his or her
own occupancy for a period of not less than one year. Proof of the sale or offering for sale of any such structure by
the builder -owner within one year after completion of same is presumptive evidence that such structure was
undertaken for purpose of sale. Provided, however, that any person holding a state contractor's license pursuant
to Sections 7056, 7057, and 7058 et seq. of the California Business and Professions Code, as the same now exists or
as hereafter amended, shall be considered a contractor.
Building and loan shall mean any person who for a fee engages in the loan of money upon personal security,
automobile, or any personal property, evidences of debt, or purchases automobile contracts, commercial paper,
assignments of salary, salary warranty, salary demands, time checks, or other evidences of salary due or to become
due, or automobile paper. The term building and loan as used in this Chapter includes savings and loans, but does
not include pawnbrokers or the holder of a bond brokers license, or any person conducting a banking business
under the laws of the state or any person subject to the state corporate income tax as a financial corporation.
Building -tradesman shall mean any person engaged within the city as an independent contractor in any
trade, art, calling, avocation or occupation of the building trades and not licensed as a contractor by the state.
Business shall include all activities engaged in or caused to be engaged in within the city, including any
commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, including rental
of residential or commercial real estate, and every other kind of activity whether or not carried on for gain or
profit, and whether or not engaged in as a principal or as an independent contractor, but shall not include the
services rendered by an employee to his employer.
Business license receipt shall mean the receipt required to be posted or displayed as evidence of a business'
payment of the tax required by the provisions of this Chapter and shall herein be referred "license receipt" or
"license" except as otherwise specified.
Business license tax shall mean the privilege tax paid as required by the provisions of this Chapter and shall
herein be referred to as "business or license tax" or "fee" except as otherwise specified.
Charge shall mean any fee fixed herein which is intended solely to cover the reasonable administrative cost
incurred in performing any specified act on behalf of any person or at any person's request for which said person
shall be liable except as otherwise specified hereinafter.
Coin -operated machine or device shall mean any machine or device that dispenses a product, or provides a
service, or utility or amusement; resulting from insertion or use of a coin, slug, token, plate, disc, plug, key, check
or other device, or money, or thing of value.
Collector shall mean the finance director or other city officer charged with the administration of this Chapter.
City of Santa Ana RFP No. 23-165 Page 65 of 196
Commission agent, broker or merchant shall mean any person engaged in the business of buying and selling
of goods, wares, or merchandise for the owner or consignee thereof for a fee or commission, whether or not the
operation of such business customarily includes the actual possession, custody or control of goods, wares or
merchandise to the extent that such person (1) does not engage in the business of manufacturing, refining,
fabricating, milling, treating or other processing of the goods, wares or merchandise bought and sold, and does not
cause said goods, wares or merchandise to be manufactured, refined, fabricated, milled, treated or otherwise
processed; (2) does not obtain or retain title to said goods, wares or merchandise except during one or more of the
following situations: while such goods, wares or merchandise are actually in transit, or for short periods of time
before transportation commences or after it ceases; and (3) does not store or warehouse such goods, wares or
merchandise except during one or more of the following situations: while such goods, wares or merchandise are
actually in transit, or for short periods of time before transportation commences or after it ceases.
Contractor shall mean any person who is licensed as a contractor by the State of California and who
undertakes to or offers to undertake to or purports to have the capacity to undertake to or submits a bid to, or
does himself or by others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any
building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do
any part thereof, including the erection of scaffolding or other structures or works in connection therewith. The
term contractor as used in this Chapter includes general engineering contractor, general building contractor,
specialty contractor and subcontractor except as otherwise specified herein.
Cost of doing business shall mean that amount which is equivalent to the volume of business performed,
where the business of any local office, facility, agent, broker or employee is that of performing administrative or
management related services in connection with sales or services performed or rendered elsewhere. Said amount
shall be computed by determining the total cost of maintaining said local office, facility, agent, broker or
employee. Said total cost of maintaining said local office, facility, agent, broker or employee shall include, but is
not limited to, the wages, salaries, commissions, bonuses, rent, and/or depreciation, telephone, postage, utilities,
janitorial and other expenses allocated for maintenance of said office, facility, agent, broker or employee.
Cost of said premises shall mean that amount which is equivalent to the cost directly related to maintaining
any single-family residential rental property or other undivided single residential rental premises where said cost is
shared between the owner or leaseholder and any other individual or individuals as co -residents or where said
cost is borne by an immediate relative related by blood, adoption or marriage as resident. The term immediate
relative as used herein shall be limited to the following classes of individuals: mothers and fathers, grandmothers
and grandfathers, sons and daughters, grandsons and granddaughters, brothers and sisters, and husbands and
wives. Said amount shall include, but is not limited to: mortgage costs, title and homeowner property insurance
premiums, property taxes, homeowner or condominium association costs; other costs or expenses arising from
contractual obligations relating to maintaining ownership or leasehold interest in said premises; and the cost of
utilities, maintenance or other related services for which the owner or leaseholder is liable.
Disabled veteran shall mean any honorably discharged member of the armed forces of the United States,
who is physically unable to obtain his livelihood by means of manual labor and who is a qualified voter of the state.
Employee shall mean all individuals who are engaged in the operation or conduct of any business and whose
consideration for services rendered is in the form of a regular salary or wage.
Engaged in business shall mean the transacting and carrying on, managing or operating of a business
whether done as owner or by means of an officer, agent, manager, employee or lessee.
Fixed place of business shall mean the premises primarily occupied for the particular purpose of conducting
the business thereat and regularly kept open for that purpose with a competent person in attendance for the
purpose of attending to such business, except that an auto -car wash, auto-laundromat or similar self-service
business shall be considered a "fixed place of business" whether or not anyone is in attendance, and a warehouse
shall be considered a "fixed place of business" whether or not anyone is in attendance and whether or not the
premises is regularly kept open.
City of Santa Ana RFP No. 23-165 Page 66 of 196
Flat rate or flat rate tax shall mean a fixed amount assessed per business location or, alternatively, a fixed
amount assessed for the privilege of engaging and transacting in business activity within the city from place to
place.
General contractor shall include any general building contractor or general engineering contractor or any
other person who is licensed pursuant to Sections 7056 and/or 7057 of the California Business and Professions
Code as the same now exists or as hereafter amended.
Gross receipts shall include the total amount of the sale price of all sales and the total amount charged or
received for the performance of any act or service of whatever nature it may be, for which a charge is made or
credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials,
goods, wares or merchandise. The following shall be included in "gross receipts": all receipts, rents, cash, credits
and property of any kind or nature, without any deduction therefrom on account of the cost of property sold, the
cost of materials used, labor or service cost, interest paid or payable, or losses or other expenses whatsoever.
The following shall be excluded from "gross receipts":
(a) Cash discounts allowed and taken on sales;
(b) Credit allowed on property accepted as part of the purchase price and which property may later be
sold;
(c) Any tax required by law to be included in or added to the purchase price and collected from the
consumer or purchaser;
(d) Such part of the sale price of property returned by purchasers upon rescission of the contract of sale as
is refunded either in cash or by credit;
(e) Amounts collected for others where the business is acting as an agent or trustee to the extent that
such amounts are paid to those for whom collected, provided the agent or trustee has furnished the
collector with the names and addresses of the others and the amounts paid to them, other than
amounts received as commissions or fees earned, or charges of any character made or compensation
of any character received for the performance of any service as agent or trustee; provided that any
agent or trustee dealing in stocks or other similar written instruments evidencing a right to participate
in the assets of any business, or dealing in bonds or other evidences of indebtedness, who also deals in
such property as a principal, shall include in the gross receipts by which the tax is measured the
amount of his or her trading profits resulting therefrom. No deduction from receipts attributable to
trading as a principal shall be made unless such deduction is provided for in this section;
(f) The difference between the balance owed and paid on a defaulted purchase or finance contract upon
repossession by seller and the amount received from resale of the repossessed article by the
repossessing seller;
(g) Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the
business shall not be excluded;
(h) As to alcoholic beverages, that portion of the receipts of a manufacturer, transporter, retailer or
wholesale distributor generated or otherwise collected from the manufacture, transport, retail or
wholesale of intoxicating liquors within the state pursuant to Article XX, Section 22 of the State
Constitution;
(i) As to a retail gasoline dealer, a portion of his or her receipts from the sale of motor vehicle fuels equal
to the motor vehicle fuel license tax imposed by and previously paid under the provisions of Part 2 of
Division 2 of the State Revenue and Taxation Code, as the same now exists or as hereafter amended;
City of Santa Ana RFP No. 23-165 Page 67 of 196
(j) As to a retail gasoline dealer, the special motor fuel tax imposed by Section 4041 of Title 26 of the
United States Code, as the same now exists or as hereafter amended, if paid by the dealer or collected
by him or her from the purchaser;
(k) Cash value of sales, trades, transfers or other transactions as made between separate departments,
divisions or units of any single business entity;
(1) Sales for convenience where sales of new goods, wares or merchandise are made by a person engaged
in selling such articles to another person engaged in selling like or similar articles:
(1) Where the primary purpose of the particular transaction of sale is to accommodate the purchaser
rather than to make a sale in the ordinary course of business and the price paid is essentially the
book value of the article;
(2) Where, in the particular kind of business involved, a similar manner of dealing is frequent or
customary in the circumstances under which the particular sale is made; and
(3) Where goods, wares or merchandise of like or similar kind and of substantially equivalent value
to that which was sold is received in consideration.
As to general contractors and other similar businesses, "gross receipts" shall not include that portion of the
receipts of a general contractor which represents payments to subcontractors, provided that such subcontractors
are licensed under this Chapter and provided the general contractor furnishes the collector upon request with the
names and addresses of the subcontractors and the amounts paid to them.
As to bail bond brokerages, commission agent brokerages, mortgage brokerages, real estate brokerages,
securities brokerages, travel agencies, and other similar businesses employing agents, brokers and/or
commissioned employees, "gross receipts" shall include the total gross commissions or other receipts attributable
to the local office, agents, brokers and/or employees.
As to accountants, architects, attorneys, chiropractors, doctors, dentists, optometrists, podiatrists,
psychologists, veterinarians and other professionals, either practicing solely or in partnership or as a professional
corporation, "gross receipts" shall include the total gross fees or other receipts attributable to services performed
or otherwise rendered within the city.
As to other persons having a fixed place of business within the city and providing a service or plying an
occupation or trade or involved in similar businesses, "gross receipts" shall include the total fees, commissions or
other receipts attributable to that local location and/or employees.
As to a business established outside the city but maintaining a local office or establishment or facility, within
the city through an agent, broker or employee, "gross receipts" shall include the total sales or receipts attributable
to the local office or establishment or facility, agent, broker or employee.
As to a business established outside the city but transacting and carrying on business within the city, or
otherwise performing or rendering services negotiated or contracted for within the city, whether or not by a
principal or through an agent or employee, "gross receipts" shall include the total fees, commissions or other
receipts attributable to the business activity conducted.
As to any business, whether established within or established outside the city, in the event separate sales or
receipt records are not maintained for a local office or establishment or facility, agent, broker or employee, or in
the event any retailing, wholesaling, manufacturing or processing activity conducted thereat does not generate
gross receipts as hereinabove defined, or in the event said local office or establishment or facility, agent, broker or
employee is engaged in providing administrative or management related services, to include, but not limited to,
record keeping, data processing, research and development, advertising, public relations, personnel administration
or legal services, in connection with sales or services performed or rendered elsewhere, the business tax shall be
based upon an amount which bears the same proportion to the total gross receipts of the business which cost of
maintaining said local office, facility, local agent, broker or employee bears to the total cost of maintaining said
City of Santa Ana RFP No. 23-165 Page 68 of 196
business. Alternatively, at the election of an applicant or licensee, the business tax may be based on an amount
equivalent to the cost of maintaining said business without reference to the total gross receipts of the business. As
used herein the phrase "cost of maintaining said business" shall have the same meaning as "cost of doing
business".
Independent contractor shall mean any natural person other than a state licensed contractor, who is engaged
to aid in the business of any other person, whether as a professional as defined hereinbelow or whether pursuant
to any license, certificate or registration authorized by the California Business and Professions Code, as the same
now exists or as hereafter amended, or whether with regard to any other trade, skill or occupation, and who
receives remuneration either through commission or pursuant to any contract of employment which excludes
regular wages or salary, or in any other manner other than through regular wages, salary or a direct participation
in the profits of the business.
Insurance agent shall mean any person, including bailbond agents, directly authorized by and on behalf of an
insurer to transact insurance and to bind the insurer in the execution of insurance policies.
Insurance broker shall mean any person, including bailbond brokers, who, for compensation and on behalf of
another person, transacts insurance other than life with, but not on behalf of, an insurer.
Insurance solicitor shall mean a natural person employed to aid an insurance agent or insurance broker in
transacting insurance other than life.
Itinerant merchant shall mean any person who engages in a temporary or transient business in the city,
selling or offering for sale goods, wares, merchandise or things or articles of value, with the intention of conducting
such business in the city for a period of not more than ninety (90) days in any calendar year and who, for the
purpose of carrying on such business, hires, leases or occupies any room, doorway, vacant lot, building or structure
for the exhibition or sale of goods, wares or merchandise, or who associates temporarily with any local dealer,
trader, merchant or auctioneer, or who conducts such temporary or transient business in connection with or as a
part of or in the name of any local dealer, trader, merchant or auctioneer.
Junk collection shall refer to the use of any vehicle by any person for the purpose of traveling from place to
place or from street to street to purchase and collect any rags, bottles, papers, cans, metals or other junk.
Junk dealer shall mean any person having a fixed place of business in the city engaged in the business of
buying or selling, either at wholesale or retail, any rags, bottles, papers, cans, metals or other junk.
Junk salvager, junk collector or junk recycler shall mean any person at a fixed place of business in the city
engaged in the business of carrying on or collecting, buying or selling at either retail or wholesale or otherwise
dealing in junk and/or rubbish, waste material, refuse and/or any rags, sacks, bottles, papers, cans, metals, rubber,
cordage, tires and other like articles, whether the same can be sold or otherwise disposed of for the purpose of
being treated, repaired or prepared so as to be used again in some other form.
Junk yards, automobile wrecking yards, and salvage yards shall include any space of two hundred (200)
square feet or more of area of any lot used for the storage, sale, keeping or abandonment of inoperable vehicles,
junk or waste material, including scrap metal or other scrap materials, or for the dismantling, demolition or
abandonment of automobiles, other vehicles, machinery or parts thereof, other than an impound yard.
Leaseholder or leasehold interest as applied to any real property shall mean any person who possesses or
shares an estate in realty held under lease. As applied to any dwelling, building, structure, premises or portion
thereof located on such real property, the term "leaseholder" and/or "leasehold interest" shall mean any person
who possesses or shares in a contract for exclusive possession or control of any such dwelling, building, structure,
premises or portion thereof for a limited time.
Leaseholder -lessor as applied to commercial or residential real estate shall mean any person who, while in
possession of a leasehold or leasehold interest in any commercial or residential real estate, acts as a lessor by
City of Santa Ana RFP No. 23-165 Page 69 of 196
engaging in the subleasing, subletting, providing, exchanging or trading of any such real property, dwelling,
building, structure, premises or portion thereof without loss of leasehold.
Licensee shall mean any person who holds a valid, current business license issued to that person under this
Chapter.
Life agent shall mean any insurance agent authorized, by and on behalf of a life, disability or life and
disability insurer, to transact life, disability or life and disability insurance.
Life and disability insurance analyst shall mean a person who, for a fee or compensation of any kind, paid by
or derived from any person or source other than an insurer, advises, purports to advise, or offers advice to any
person insured under, named as a beneficiary of, or having an interest in, a life or disability insurance contract, in
any manner concerning that contract or his or her rights in respect thereto.
Manufactureor process shall embrace all the activities of a commercial or industrial nature wherein labor or
skill is applied, by hand or machinery, to materials so that as a result thereof a new, different or useful article of
tangible personal property or substance of trade or commerce is produced and shall include the production or
fabrication of specially made or custom made articles.
Manufacturer shall mean any person who, directly or by contracting with others for the necessary labor or
mechanical services, manufactures for sale or for commercial or industrial use from his or her own materials or
ingredients any articles, substances or commodities.
Owner, ownership, or ownership interest as applied to any real property shall include the legal property
owner of record as recorded by the office of the county assessor and in addition thereto shall include, whether
recorded or unrecorded, any owner, any part owner, joint owner, tenant in common, tenant in partnership, joint
tenant, or tenant by the entirety, copartnerships of the whole or of a part of such real property, or a person having
an interest in community property as a member, or former member, of the community. As applied to any dwelling,
building, structure or premises located on such real property the term "owner," "ownership," or "ownership
interest" shall include the legal owner, and in addition thereto shall include any part owner, joint owner, tenant in
common, tenant in partnership, joint tenant, or tenant by the entirety, copartnerships of the whole or of a part of
such dwelling, building, structure or premises, or a person having an interest in community property as a member,
or former member, of the community.
Owner -lessor as applied to commercial or residential real estate shall mean any person who, while an owner
or while having an ownership interest in any commercial or residential real estate, acts as a lessor by engaging in
the leasing, renting, providing, exchanging or trading of any such real property, dwelling, building, structure,
premises or portion thereof without loss of ownership.
Pawnbroker shall mean any person conducting, managing or carrying on the business of loaning money
either for himself or herself or for any other person, upon any personal property, personal security, or purchasing
personal property and reselling or agreeing to resell such property to the vendor or other assignee at prices
previously agreed upon. Nothing in this section shall be deemed to apply to the loaning of money on personal
property or personal security by any bank authorized to do so under the laws of the state or of the United States.
Peddler shall mean any person who sells and makes immediate delivery or offers for sale and immediate
delivery any goods, wares, merchandise, service or thing in possession of the seller, at any place in the city other
than at a fixed place of business, and shall include any person who sells or offers for sale any food or produce from
a pushcart or other nonvehicular device but shall not include salespersons or agents for wholesale houses or firms
who sell to retail dealers for resale or sell to manufacturers for manufacturing purposes or to bidders for public
works or supplies.
Person shall include, without limitation, all domestic and foreign corporations of any kind, all firms and
companies (holding, joint stock, private, public, parent, pass -through, professional, operating, operating property,
non-profit, subordinate and subsidiary), partnerships of every kind including but not limited to (general
partnerships, limited partnerships, master limited partnerships, limited liability partnerships, limited liability
City of Santa Ana RFP No. 23-165 Page 70 of 196
limited partnerships, professional partnerships, and publically traded partnerships), private trusts, Massachusetts
business or common law trusts, real estate investment trusts, royalty trusts, estates, associations, syndicates,
clubs, joint ventures, unincorporated business organizations, limited liability companies of every kind including but
not limited to (sole member limited liability companies, multi member limited liability companies, non-profit
limited liability companies, and series limited liability companies), cooperatives, all other types of business entities
defined or authorized under federal and state laws, receivers, trustees, guardians or other representatives
appointed by order of any court, and any natural individuals transacting and carrying on any business in the city
other than as an employee.
Premises shall include all lands, buildings, accessory buildings or structures erected or modified, equipment
and appurtenances connected or used therewith, and any personal property affixed to or otherwise used for the
purpose of transacting and carrying on any business on such premises.
Processor shall mean any person engaging in the business of converting an article, substance or commodity
into marketable form for the purpose of resale by changing its physical form or chemical composition.
Professional shall mean any person, including any professional corporation, wherever located, engaged in or
carrying on within the city any profession requiring satisfactory compliancy with written and/or oral examination
standards adopted by a branch of the state or federal government and/or requiring a certain amount of tenure
with such branch of government; such professions to include but not be limited to: architect (all types), attorney,
accountant (all types), audiologist, chiropractor, clinical social worker, dentist, drugless practitioner, electrologist,
engineer (all types), geologist, herbalist, marriage, family and child counselor, mortician, naturopath, optician,
optometrist, osteopath, physician (all types), podiatrist, psychologist, registered nurse (as shareholder in a
professional corporation), speech pathologist, surveyor, veterinarian.
Professional corporation shall mean any corporation organized under the California General Corporation Law
which is engaged in rendering professional services in a single profession, or as otherwise authorized pursuant to
Section 13400 et seq. of the California Business and Professions Code, as the same now exists or as hereafter
amended, and which in its practice or business designates itself as a professional or other corporation as may be
required by statute.
Property or real property as applied to commercial or residential real estate shall mean recorded assessor's
property parcel, as identified by county assessor's parcel number.
Real estate agent shall mean any person licensed as such by the state and engaged wholly or in part in
transacting and carrying on the sale of real estate.
Real estate broker shall mean any person licensed as such by the state and engaged wholly or in part in
transacting and carrying on the sale of real estate including soliciting or offering to buy, sell or lease real property
for others; negotiating and collecting loans for borrowers or lenders; dealing in real property sales contracts and
promissory notes; receiving advance fees for real estate listings; and dealing in real estate syndicate securities.
Real estate developer shall mean any person conducting, managing or transacting and carrying on the
business of acquiring, subdividing, improving, selling, renting and otherwise dealing in and disposing of or
developing real property for commercial, industrial, residential or nonresidential purposes including, but not
limited to, one who constructs improvements upon real property for commercial, industrial, residential or
nonresidential purposes with the object of selling, renting or developing it for his or her own use.
Recreational services shall mean any person engaged in the business of providing facilities for recreational
use; such services to include, but not be limited to: amusement machine arcades, bowling alleys, driving ranges,
golf courses (including miniature), motion picture theaters (including drive-in), pool halls (including billiards and
snooker), riding stables, skating rinks, social clubs, sports clubs (including spas, health clubs and conditioning
gyms), swimming pools and tennis and racket clubs.
Rental of commercial real estate shall include every person, whether as an owner -lessor or leaseholder -
lessor, engaged in the business of leasing, renting, subleasing, subletting, providing, exchanging or trading without
City of Santa Ana RFP No. 23-165 Page 71 of 196
loss of ownership or leasehold any real property, dwelling, building, structure, premises or portion thereof for
industrial, commercial, office, warehouse or other entrepreneurial uses or purposes other than for the immediate
use or purpose of dwelling, sleeping, lodging or general residency. Provided, however, that the leasing, renting,
subleasing, subletting, providing, exchanging or trading without loss of ownership or leasehold of any real
property, dwelling, building, structure, premises or portion thereof to another for the purpose of their
independent commercial operation of an apartment building, apartment house, boarding house, guest house,
mobile home park, nursing home, residential care facility, rooming house, or hotel or motel thereat shall be
deemed to constitute a rental of commercial real estate.
The license tax for the rental of commercial real estate shall be assessed per property, and liability for said
tax shall be determined by owner's -lessor's ownership of, or leaseholder's-lessor's leasehold interest in, said
property. Independent property management agents acting for property owners -lessors or property leaseholder -
lessors are responsible for payment of the license tax on the rental of such property, if the owner -lessor or
leaseholder -lessor of said property has not paid the tax when due and payable and, in addition, are subject to the
license tax as a separate business.
Provided, however, that where any one dwelling, building, structure or premises is comprised of one (1) or
more contiguous properties, then the owner -lessor or leaseholder -lessor owning or controlling said building,
structure or premises may, upon submission of acceptable documentary proof thereof, obtain a single
consolidated business license tax assessment. Further provided that where an owner -lessor or leaseholder -lessor
owns or controls two (2) or more separate buildings, structures or premises located on the same property, or two
(2) or more buildings, structures or premises located on separate but contiguous properties, then the owner -lessor
or leaseholder -lessor owning or controlling said buildings, structures or premises may, upon submission of
acceptable documentary proof thereof, obtain a single consolidated business license tax assessment.
Rental of residential real estate shall include every person, whether as an owner -lessor or leaseholder -lessor,
engaged in the business of leasing, renting, subleasing, subletting, providing, exchanging or trading without loss of
ownership or leasehold any real property, dwelling, building, structure, premises or portion thereof, except for any
hotel or motel, for the immediate purpose of dwelling, sleeping, lodging, boarding or other such occupancy,
accommodation or general residency.
The license tax for the rental of residential real estate shall be assessed per property, and liability for said tax
shall be determined by owner's -lessor's ownership of, or leaseholder's-lessors's leasehold interest in, said
property. Independent property management agents acting for property owner -lessors or property leaseholder -
lessors are responsible for payment of the license tax on the rental of such property, if the owner -lessor or
leaseholder -lessor of said property has not paid the tax when due and payable and, in addition, are subject to the
license tax as a separate business.
Provided, however, that where any one dwelling, building, structure or premises is comprised of one (1) or
more contiguous properties, then the owner -lessor or leaseholder -lessor owning or controlling said building,
structure or premises may, upon submission of acceptable documentary proof thereof, obtain a single
consolidated business license tax assessment. Further provided that, where an owner -lessor or leaseholder -lessor
owns or controls two (2) or more separate buildings, structures or premises located on the same property, then
the owner -lessor or leaseholder -lessor owning or controlling said dwellings, structures or premises may, upon
submission of acceptable documentary proof thereof, obtain a single consolidated business license tax
assessment.
Nothing in this section shall be construed to require the payment of a business license tax where any owner
or leaseholder resides in a single-family residence or other undivided single residential rental premises and
participates with one (1) or more other co -residents in the shared cost of said premises. Neither shall this section
be construed to require the payment of a business license tax for the rental of a single-family residence or other
undivided single residential rental premises as between an owner or leaseholder and any individual immediately
related by blood, adoption or marriage to said owner or leaseholder, where the remuneration rendered to said
owner or leaseholder does not exceed the cost of said premises.
City of Santa Ana RFP No. 23-165 Page 72 of 196
Eligibility for the business license fee exemption herein provided is restricted to owners or leaseholders who
are natural persons and whose ownership of or leasehold interest in said residential rental property is undivided.
An owner or leaseholder claiming a license fee exemption hereunder shall have the burden of furnishing to the
collector such information as the collector may require to support the claim of eligibility for exemption.
Nothing in this section shall be construed to relieve any person who is eligible for or claims to be eligible for
exemption from payment of any required residential rental property business license fee from the requirement to
obtain said business license in the same manner and at the same time as is required under the terms of this
Chapter of all other persons applying for a business license, and such person shall be subject to the same
procedures for enforcement and for penalties as provided herein.
Rental unit shall mean the smallest accommodation for which a fee is charged or received.
Retailer shall mean any person engaging in the business of selling goods, wares or other merchandise to
consumers or end -users thereof.
Revenue officer shall mean the duly authorized agent of the collector charged with assisting the collector in
the exercise of the duties imposed upon him or her hereunder.
Sale shall include the transfer, in any manner or by any means whatsoever, of title to property for a
consideration; the serving, supplying or furnishing for a consideration of any property; and a transaction whereby
the possession of property is transferred and the seller retains the title as security for the payment of the price
shall likewise be deemed a sale. The foregoing definitions shall not be deemed to exclude any transaction which is
or which, in effect, results in a sale within the contemplation of law.
Sale at retail and retail sale shall mean every sale of tangible personal property (including articles produced,
fabricated or imprinted) other than sale to one who (1) purchases for the purpose of resale as tangible personal
property in the regular course of business, or (2) purchases for the purpose of consuming the property purchased
in producing for sale a new article of tangible personal property or substance, of which such property becomes an
ingredient or component, or as a chemical used in processing, when the primary purpose of such chemical is to
create a chemical reaction directly through contact with an ingredient of a new article being produced for sale.
Sale at wholesale and wholesale sale shall mean any sale of tangible personal property which is not a "sale at
retail." Sales otherwise classified hereinabove as "retail sales" may, nevertheless, be classified as "wholesale sales"
under this section, if the vendor can establish to the satisfaction of the collector that the sale was made to a
government agency, public utility, manufacturer, processor or contractor who consumed the articles in the course
of his or her own operations and did not offer the articles for resale to the general public except as an integral part
of manufacturing, construction or service.
Service fee shall mean a fixed fee, specified by resolution of the city council, which is intended solely to cover
the reasonable administrative costs incurred in redeeming dishonored or stopped payments, in performing audits,
collections, inspections, investigations, and the administrative enforcement of this Chapter and adjudication
thereof.
Services shall mean the business of providing, maintaining or performing labor for the benefit of another
within the city; of supplying some general demand for the benefit of another within the city which does not
produce a tangible commodity; or furnishing of services and all activities in which any person for any other person
performs any personal service and all services in which any real or personal property, stocks or bonds, or other
financial instruments or evidences of debt, or contracts of insurance or any money or credits are exchanged,
leased, transferred or loaned; as well as every business of maintaining, storing, cleaning, improving or repairing
tangible commodities within the city whether or not such business is conducted from a premises, vehicle or mobile
location within or outside the city. Services include recreation services but do not include theatrical performances,
exhibitions or temporary amusements, nor do they include professional services or telephone services within the
terms of this Chapter.
City of Santa Ana RFP No. 23-165 Page 73 of 196
Solicitor shall mean any person who engages in the business of going from house to house, place to place, on
or along the streets, within the city and/or by telephone, soliciting any opinions, preferences, endorsements or
other information, or selling or taking orders for or offering to sell or take orders for goods, wares or merchandise
or other things of value for future delivery or for services to be performed in the future.
Stock broker and bond broker shall mean any person engaged in the business of buying or selling federal,
state, county or municipal stocks or bonds, or stocks and bonds of partnerships or other incorporated entities, or
evidences of indebtedness of private persons, partnerships or of incorporated entities, for a fee or commission.
Sworn statement shall mean an affidavit sworn to before a person authorized to take oaths, or a declaration,
certification, or verified affidavit made under penalty of perjury.
Telephone services shall mean any person engaged in the business of providing telephone services as a
"telephone company" pursuant to Article XIII, Section 19 of the State Constitution.
Transact and carry on means to repeat, or intend to repeat, or to continue and includes:
(a) The maintaining, operating, managing or being in control of, or right to make use of directly or
remotely, any office, store, warehouse, factory, establishment, premises, location or place:
(1) Having one (1) or more telephones listed for any business activity in any classified telephone
directory or in the classified Section of any consolidated telephone directory, or in any combined
online directory or internet/web based listing service,
(2) Having computers or other computing devices used to maintain one (1) or more internet
websites or webpages or maintaining internet/web based advertising,
(3) Having in use in connection with any business one (1) or more counters, desks, chairs, tables,
filing cabinets, typewriters, adding or calculating machines, computers, servers, printers,
scanners, fax machines or other articles of office equipment,
(4) At, from, or in which any processing, manufacturing, supervising, administration, management,
research, sales or sales promotion, peddling, solicitation, warehousing, distributing, routing,
delivery, mail or package receipt, recycling, dispatching, billing, collection, accounting,
computing, product development, software development, testing, storage, record -keeping or
other activity is conducted in connection with any business,
(5) In or at which one (1) or more persons may, for any valuable consideration intended to result, or
that results, in any livelihood, financial profit or commercial gain to any person, receive any
instruction, advice, treatment or examination, or any service upon their person, or any repair,
refinishing, renewing, cleaning, or other improvement to, or of, any personal property,
(6) In which any letter, announcement, advertisement, circular, handbill, newspaper, agreement,
contract, instruction, legal instrument, government required registration, permit or license, tax
filing statement, financial statement, statement of account, financial record, or any other
instrument or record is written, printed, reproduced, published, prepared or kept in connection
with any business,
(7) From which any circular, handbill, newspaper, announcement, statement of account, card or
letter is sent or distributed, in writing, or any contract is made, in person or by telephone, in
connection with any business,
(8) Upon any exterior side, wall, window, door, roof or other portion, or in the proximity of which,
there is maintained any sign, lettering, announcement or advertisement indicating that such
office or place is one (1) in, at or from which any article exists, or any act is performed in
connection with any business;
City of Santa Ana RFP No. 23-165 Page 74 of 196
(b) The repeated or continuous offering, or contracting, orally or in writing, in connection with any
business:
(1) To sell or rent one (1) or more articles, or one (1) or more rooms, apartments, portions or parcels
of any real or personal property, or
(2) To transport any person or personal property, or
(3) To perform any service;
(c) In connection with any business, the repeated or continuous:
(1) Sale or renting of one (1) or more articles or parcels of real or personal property, or
(2) The transporting of any person or property, or
(3) The performance of any service;
(d) The repeated parking, servicing, replenishing or maintaining of any delivery vehicle, catering truck, junk
collection vehicle, pushcart or wagon within the city, whether or not on the premises of another, when
done in connection with the permanent painting or inscribing or affixing of said address on the surface
of said pushcart, vehicle or wagon;
(e) The performance, in connection with any business, of any single act, with intent to repeat or continue
the performance of such act.
Variable flat rate or variable flat rate tax shall mean a fixed scale of amounts whose sum is variable
depending on the number or other factor furnishing the basis for determination of the license tax. The term
variable flat rate or variable flat rate tax as used in this Chapter includes any tax based on the number of persons
engaged or employed in a business.
Vehicle means every device in, upon or by which any person or property is or may be transported or drawn
upon a public street or highway, except devices moved by human power or used exclusively upon stationary rails
or tracks.
Vending operations means any business conducted or carried on by any person engaged in the business of
operating coin -operated machines or devices on the premises of another or in the business of owning, renting,
leasing, lending, or otherwise distributing or supplying coin -operated machines or devices while retaining title
thereto. Such machines include, but are not limited to, vending, amusement, service and telephone machines.
Wholesaler shall mean any person engaging in the business of selling goods, wares, merchandise or other
products for the purpose of resale and not to consumers or users thereof.
Utility and public utility mean any person furnishing the public with communication, water, light, heat or
power, subject to regulation by the Public Utilities Commission of the State of California.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2000, § 1, 3-6-89; Ord. No. NS-2064, § 1, 6-18-90; Ord. No. NS-2841,
§§ 3, 4, 2-4-13)
ARTICLE 11. IN GENERAL
Sec. 21-4. Purpose.
The purpose of this Chapter is to provide a revenue for the general operation of the city by the levy of a
license tax on all business transactions or activities carried on or occurring within the city and is not intended for
regulation.
City of Santa Ana RFP No. 23-165 Page 75 of 196
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-5. License required.
There are imposed upon the businesses, trades, professions, callings and occupations specified in this
Chapter license taxes in the amounts hereinafter prescribed. It shall be unlawful for any person, whether as
principal or agent, clerk or employee, either for himself or for any other person, or for body corporate, or as an
officer of any corporation to transact and carry on any business, trade, profession, calling or occupation in the city
without first having procured a license from the city to do so or without complying with all applicable provisions of
this Code.
This section shall not be construed to require any person to obtain a license prior to doing business within
the city if such requirement conflicts with applicable statutes of the United States or of the state.
Persons not required to obtain a license prior to doing business within the city because of conflict with
applicable statutes of the United States or of the state shall be liable for payment of the tax imposed by this
Chapter but shall not be subject to any penal provisions of this Code for such nonpayment. Said tax shall be
collected in a civil action.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-6. Violation defined.
The engaging in, transacting and carrying on of any business without first having procured a license from the
city to do so, or without complying with any and all provisions of this Chapter, constitutes a distinct and separate
violation of this Chapter for each and every day that such business is so carried on.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-7. Branch establishments; multiple places of business; more than one type of
business.
A separate business license fee must be paid and a separate business license obtained for each branch
establishment or separate property location of the business transacted and carried on, and for each separate type
of business at the same location, and each license shall authorize the licensee to transact and carry on only the
business licensed thereby at the location and in the manner designated in such license. Provided, however, that
warehouse or distribution facilities located upon the same premises or upon contiguous premises and used in
connection with or incidental to a business licensed thereat under the provisions of this Chapter shall not be
deemed to be separate types of business or separate branch establishments. Further provided that no separate
business transactions or administrative or management related activities shall be carried on in such incidental or
supplemental warehouses or distribution facilities.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2000, § 2, 3-6-89)
Sec. 21-8. Two or more allied businesses.
(a) Whenever any person is engaged in two (2) or more correlated businesses, or is carrying on two (2) or more
allied activities at the same location and under the same ownership and management and the said
businesses are on a gross receipts basis, then in that event the gross receipts shall be reported together, and
the appropriate applicable rate or rates prescribed will be used for the compilation of the combined annual
City of Santa Ana RFP No. 23-165 Page 76 of 196
license fee, to which amount the basic tax rate amount and business license processing charge shall be
applied once only, and for which amount a single combined license shall be issued.
Provided, however, that nothing contained in this section shall be construed to relieve the payment of two
(2) or more business license taxes, when required, where two (2) or more separate businesses are conducted in
the same location by the same owner and management and such businesses are not construed by the collector to
be correlated or allied with each other. An appropriate business license tax as set forth in this Chapter shall be paid
for each business.
(b) Whenever any person is engaged in any activity pursuant to a state contractor's license and at the same time
is engaged in one (1) or more other correlated businesses, or is carrying on one (1) or more allied activities at
the same location and under the same ownership and management, which business or businesses are on a
gross receipts basis, then in that event such person may elect to report all the gross receipts together,
including all the gross receipts attributable to any services rendered as a state -licensed contractor, which
shall be at the rate of a service business, and the applicable rate or rates prescribed will be used for the
compilation of the combined annual license fee, to which amount the basic tax rate amount and business
license processing charge shall be applied once only, and for which amount a single combined license shall be
issued.
Provided, however, that nothing contained in this section shall be construed to relieve the payment of two
(2) or more business license taxes, when required, where two (2) or more separate businesses are conducted in
the same location by the same owner and management and such businesses are not construed by the collector to
be correlated or allied with each other. An appropriate business license tax as set forth in this Chapter shall be paid
for each business.
(c) Whenever any person is engaged in transacting and carrying on any business at any fixed place of business
within the city, and for whom flat rates or variable flat rates are made the basis for fixing the amount of such
license, and who at the same time, and at that same location, and under the same ownership and
management, is engaged in the commercial rental of any portion of said premises as owner -lessor or
leaseholder -lessor, then in that event such person may elect to report all the gross receipts attributable to
the rental of commercial real estate thereat, which gross receipts shall be subject to a separate license fee at
the rate established for the rental of commercial real estate, but to which amount the basic tax rate amount
and business license processing charge shall be excluded.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 2, 6-18-90)
Sec. 21-9. Combined businesses.
Whenever any person is engaged in a combined business conducted at the same location and by the same
owner and management carrying on manufacturing and selling at wholesale and also at retail, or selling at
wholesale and also at retail but not manufacturing, and where such combined business is not otherwise specifically
licensed on the flat rate basis, then in that event a single combined statement separately showing the amount of
manufacturing and wholesale and retail business engaged in respectively shall be filed and the combined tax shall
be separately calculated according to the respective rates appropriate for each category of business activity, to
which amount the minimum tax fee and business license processing charge shall be applied once only, and for
which amount a single combined license shall be issued.
In the event that such a combined statement is not filed, or in the event sufficient records have not been
kept which will enable the manufacturing and wholesale portion and the retail portion of such business to be
ascertained, then in that event all business done by any such person, whether manufacturing and wholesale or
whether retail, shall for the purposes of this section be considered as retail business and the rate prescribed for
retail business shall be applied to calculate the amount of business tax due, to which amount the minimum tax fee
City of Santa Ana RFP No. 23-165 Page 77 of 196
and business license processing charge shall be applied once only, and for which amount a single combined license
shall be issued.
Provided, however, that nothing contained in this section shall be construed to relieve the payment of two
(2) or more business license taxes, when required, where two (2) or more separate business activities are
conducted in the same location by the same owner under the same management and such business activities are
not construed by the collector to constitute a combined business. An appropriate business license tax as set forth
in this Chapter shall be paid for each business.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-10. Single location; multiple businesses; separate owners.
Nothing contained in this Chapter shall be construed to relieve the obligation to obtain a separate license
and to pay the appropriate license tax required for each business owned or conducted by a separate owner within
an individual establishment or location whether under the same management or not.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-11. Concessions; separate license required.
Any person who operates any business, whether upon a cost, rental or commission basis as a concession or
upon rented floor space in or upon the premises of any person licensed under the provisions of this Chapter, shall
be required to obtain a separate and independent license pursuant to this Chapter except as may be otherwise
specified hereinafter.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-12. Association with local business or governmental agency; disclosure of associated
businesses and independent contractors.
Any person who shall associate with any local business or governmental agency, whether or not on a
temporary basis, shall not be relieved from the provisions of this Chapter and shall be required to pay the
appropriate business license tax as specified in this Chapter. Nothing in this Chapter shall be deemed or construed
to relieve any such person from the provisions of this Chapter by virtue of any exemption provided to any local
business pursuant to this Chapter or any exemption or exclusion applicable to any agency, instrumentality, or
political subdivision of the state or of the United States, or any exemption or exclusion otherwise arising out of the
constitution or applicable statutes of the United States or the state.
(a) Definitions. As used in this section, the following phrases shall have the meaning hereinafter set forth:
(1) The phrase "local business" as used in this section shall be defined as including all persons
transacting and carrying on business from any fixed place of business within the city other than
as an employee. In addition, the phrase "local business" shall include all leaseholder -lessors and
owner -lessors of commercial or residential real estate within the city.
(2) The phrase "governmental agency" as used in this section shall be defined as including every
agency, instrumentality, or political subdivision of the state or of the United States.
(3) The phrase "associate with" as used in this section shall be defined to mean the transacting and
carrying on, by any other person, of business on the premises owned, controlled, or managed by
said local business or governmental agency, whether as a tenant of, in connection with, or as an
City of Santa Ana RFP No. 23-165 Page 78 of 196
affiliate of, or as an adjunct to, or in the name of said local business or governmental agency, or
whether as a building management agent, or property management agent, or independent
general operating agent or manager for said local business or governmental agency, or whether
as an outside business or an independent contractor performing services for said local business
or governmental agency.
(b) Application. In the case of a local business which is a partnership or joint venture, the phrase "associate
with" shall not include the business transacted and carried on by a general partner in connection with
the general partnership or by a joint venturer in connection with the joint venture. In the case of a local
business which is a corporation, the phrase "associate with" shall include any business transacted and
carried on by a subordinate or subsidiary corporation or holding company, pass -through entity or trust.
For all local businesses, the phrase "associate with" shall include the maintaining on the premises of
the local business of any principle executive or other business office as required in connection with the
registration of any business entity address with the California Secretary of State for any actively
registered corporation, limited liability company, limited partnership, or limited liability partnership
under the California Corporations Code as the same now exists or as may be hereafter amended from
time -to -time.
In the case of a local business which is a leaseholder -lessor or owner -lessor of commercial or
residential real estate within the city, the phrase "associate with" shall include any business transacted
and carried on by an independent resident property manager, independent building manager,
independent property agent or independent building agent, whether or not such independent
manager or agent is also a tenant of said property. Such independent manager or agent shall be
required to obtain a separate business license. In the case of a local business which is a tenant of a
commercial premises and a party to a lease -back agreement or other similar agreement involving said
commercial real estate in which the ownership identities of both parties to the agreement are
identical, but the legal entities are distinct, the phrase "associate with" shall include any such business
transacted by the owner -lessor or leaseholder -lessor of said commercial real estate. Such owner -lessor
or leaseholder -lessor shall be required to obtain a separate business license and shall be subject to all
the requirements of this Chapter.
(c) Disclosure.
(1) Every local business, and any person acting as their agent, shall upon request by the collector,
provide the names and addresses of all persons who lease, rent or maintain space, mailboxes,
coin -operated machines or devices, or in any other manner transact and carry -on business, or
occupy or maintain a business presence on the premises owned, controlled, or managed by said
local business. In addition, every local business, and any person acting as their agent, shall upon
request by the collector, provide the names and addresses of all persons, whether or not located
within the city, who are contracted to perform, or who regularly do perform services on the
premises owned, controlled, or managed by said local business.
(2) Every person engaged in the rental of residential real estate within the city, every condominium
or homeowner association within the city, and all property management services acting as their
agents, shall upon request by the collector, provide the names and addresses of all persons who
have been granted permission to engage in business activity on the premises owned, controlled,
or managed by them. In addition thereto, all condominium or homeowner associations within
the city and all property management services acting as their agents, shall upon request by the
collector, provide the names, property addresses, and mailing addresses of all owners engaged in
the rental of any residential real estate, under their control or management.
(3) Every person engaged in the rental of commercial real estate within the city, and all property
management services acting as their agents, shall, at the time the license required by this
Chapter is applied for and thereafter annually at the time of the renewal of their license for the
City of Santa Ana RFP No. 23-165 Page 79 of 196
rental of commercial real estate, or at such other time as the collector in his or discretion may
set, provide to the collector a list of (i) the names and addresses of all tenants (including
subtenants) occupying the commercial real estate property licensed; and (ii) the names and
addresses of all persons, whether or not located within the city, who are contracted to perform,
or who regularly do perform services on the licensed premises owned, controlled, or managed by
said commercial real estate rental licensee or commercial real estate management agent.
(d) Disclosure requirements —Authority to vary. To effectively implement the intent of the disclosure
provisions of this section, the collector may vary the strict requirements of subsection (c) above to
accommodate the regular record keeping and business practices of persons subject to the disclosure
requirement and also to facilitate ease of administration by the collector.
(e) Confidentiality. All information received by the collector pursuant to this section shall remain
confidential and shall be used solely for the purposes of administering the city's business license tax
and shall not be maintained by the city as part of the public record.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13)
Sec. 21-13. Partnerships.
In the event that any business conducted, managed or carried on in the city is organized as a partnership or
joint venture, the scheduled license fee need be paid only by the partnership or joint venture and not by any such
individual partner or joint venturer.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-14. Corporations; in general.
In the event that any business conducted, managed or carried on in the city is organized as a general law
corporation, pursuant to the California General Corporation Law, the scheduled license fee need be paid only by
the corporation and not by any such individual shareholder thereof.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-15. Professional corporations.
In the event that any business conducted, managed or carried on in the city is organized as a professional
corporation, the scheduled license fee need be paid only by the corporation and not by any such individual
shareholder thereof
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-16. Evidence of doing business.
(a) When any person shall by use of signs, circulars, cards, business letterhead, telephone books, newspapers,
billboards, trade publications, electronic telephone or business directories, internet advertisement, or
websites, advertise, holdout, or represent that such person is in business in the city; or when any person has
registered and published a fictitious name statement registered to an address in the city, or holds or has
been issued an active state board of equalization permit, or holds any other active licenses, permits,
certificates or registrations issued by a governmental agency (including but not limited to: federal or state
employer identification numbers, or registration with the California Secretary of State as a corporation,
City of Santa Ana RFP No. 23-165 Page 80 of 196
limited partnership, limited liability partnership, or limited liability company) indicating that such person is in
business within the city, or maintains a post office box under a business name registered to any address
within the city, or when any person files federal income tax or state franchise tax statements reporting
business income within the city or claiming business office deductions or business expense deductions for a
commercially located or home -based business in the city, or gives other evidence of transacting and carrying
on business as may be defined elsewhere under the terms of this Chapter and such person fails to deny in a
sworn statement given to the collector that such person is "engaged in business" within the city, or fails to
assert and document that such person is "exempted" or otherwise "excluded" from the requirement to pay a
business license tax, after being requested to do so by the collector, then these facts shall be considered
prima facie evidence that such person is conducting a business in the city.
(b) When any municipal utility records indicate that the occupant of any commercial real estate within the city is
a person other than the person indicated by county assessor or county recorder records to be the owner of
such property, or when any utility records indicate that the occupant of any residential real estate within the
city is a person other than the person indicated by county assessor or county recorder records to be the
owner of such property, or when the county assessor or county recorder records indicate that any person
owning residential real estate within the city does not claim a homeowner's exemption for said property and
receives their property tax notification for said property at another residence location, and such person fails
to deny in a sworn statement given to the collector that such person is engaged in the "rental of residential
real estate" within the city, or fails to assert and document that such person is "exempted" or otherwise
"excluded" from the requirement to pay a business license tax, after being requested to do so by the
collector, then these facts shall be considered prima facie evidence that such person is conducting a business
in the city.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13)
Sec. 21-17. Effect of chapter on other ordinances.
Persons required to pay a license tax for transacting or carrying on any business under this Chapter shall not
be relieved from the payment of any tax for the privilege of doing such business required under any other
provisions of this Code and shall remain subject to all regulatory provisions.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-18. No required permits waived.
The business license issued pursuant to the provisions of this Chapter constitutes a receipt for the license fee
paid and shall have no other legal effect. A business license is a requirement, not a permit, to transact and carry on
any business activity within the city. The business license tax receipt is evidence only of the fact that such tax has
been paid. Neither the payment of the tax nor the possession of the business tax receipt authorizes, permits or
allows the doing of any act which the person paying or holding the same would not otherwise be entitled to do;
and any permit, license, variance or other instrument of approval or evidence that any conditions exist as required
by any other Section of this Code or by any statute or code provisions of the state must first be obtained or
complied with before the doing of any act or thing for which it is required.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-19. Severability.
If any article, Section, subsection, sentence, clause, or phrase of this Chapter is for any reason held to be
invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not effect the
City of Santa Ana RFP No. 23-165 Page 81 of 196
validity of the remaining portions of the chapter. The city council hereby declares that it would have passed this
Chapter and each article, Section, subsection, sentence, clause and phrase hereof, irrespective of the fact that any
one or more of the articles, Sections, subsections, sentences, clauses or phrases hereof be declared invalid or
unconstitutional.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-20. Decisions on amounts imposed.
If any license tax imposed by this Chapter is for any reason held to be discriminatory or invalid in amount, by
the decision of any court of competent jurisdiction, such decision shall not affect the validity of a lesser amount
imposed by the collector. The city council hereby declares that it would have imposed a license tax of some
amount on the business, occupation, calling, trade, vocation or other enterprise in question, irrespective of the
fact that any one or more of the license taxes imposed herein may be declared discriminatory or invalid in amount.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-21. Saving clause.
Neither the adoption of this Chapter nor its superseding of any portion of any other chapter shall in any
manner be construed to affect prosecution for violation of any chapter or ordinance prior to the effective date
hereof, nor be construed as a waiver of any license or any penal provision applicable to any such violation, nor be
construed to affect the validity of any bond or cash deposit required by any ordinance to be posed, filed or
deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-22. Unexpired licenses heretofore issued.
Where a license for revenue purposes has been issued to any business by the city and the tax paid therefor
under the provisions of any business license tax ordinance heretofore enacted and the term of such license has not
expired, then the license tax prescribed for such business by this Chapter shall not be payable until the expiration
of the term of such unexpired license.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-23. Unpaid taxes; tax plus penalties.
No business license for any succeeding, current or unexpired tax period shall knowingly be issued to any
person, who at the time of application, is indebted to the city for any unpaid tax. The total indebtedness shall
include the total tax due plus penalties for failure to pay the tax when due.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-24. License tax a debt; civil action.
The amount of any business license tax and penalty imposed by the provisions of this Chapter shall be
deemed a debt to the city. An action may be commenced in the name of the city in any court of competent
jurisdiction for the amount of any delinquent license tax, penalties, and administrative costs incurred in connection
therewith, including attorneys fees.
City of Santa Ana RFP No. 23-165 Page 82 of 196
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-25. Original delinquency penalty; conducting a business without first having procured
a license; effect —Voluntary compliance; effect —Abatement of penalty;
application —Violation; misdemeanor.
(a) Any person who shall commence, engage, transact and carry on any trade, calling, profession, occupation or
business within the city without first having procured the required business license from the city to do so,
shall be assessed a penalty of fifty (50) per cent of the amount of the license tax owing, which amount shall
be separately calculated for each successive license period beginning with the calendar month in which the
commencement of business activity within the city began, and ending with the expiration of the current
annual licensing period. Provided, however, that the start of such period shall not exceed three (3) years
prior to the date of notification of violation. Such penalty to be collected, and the amount thereof to be
enforced, in the same manner as all other business license taxes are collected and the payment thereof
enforced.
(b) Where any person is in arrears for business license taxes under subsection (a) above, owed for the rental of
residential or commercial real estate within the city, or owed for a business which is conducted solely from a
home residence within the city, the penalties imposed under subsection (a) shall be abated in accordance
with subsection (f) below if the tax is paid by the last day of the calendar month following the month in
which such person was given notice of the requirement to obtain a city business license; otherwise penalties
shall accrue as in the case of any other business.
(c) Where any person occupying a commercial premises as a tenant or subtenant is in arrears for business
license taxes under subsection (a) above, and has been reported to the collector pursuant to Section 21-12,
the penalties imposed under subsection (a) shall be abated in accordance with subsection (f) below if the tax
is paid by the last day of the calendar month following the month in which such person was given notice of
the requirement to obtain a city business license; otherwise penalties shall accrue as in the case of any other
business.
(d) Where any person, whether or not located within the city, is contracted to perform, or regularly does
perform services on the premises owned, controlled, or managed by a local business as defined in Section
21-12 and is in arrears for business license taxes under subsection (a) above, and has been reported to the
collector pursuant to Section 21-12, the penalties imposed under subsection (a) shall be abated in
accordance with subsection (f) below if the tax is paid by the last day of the calendar month following the
month in which such person was given notice of the requirement to obtain a city business license; otherwise
penalties shall accrue as in the case of any other business.
(e) Where any person is otherwise in arrears for business license taxes under subsection (a) above, the penalties
imposed under subsection (a) shall be abated in accordance with subsection (f) below if such person
voluntarily applies for the required business license and pays the business license tax owing in arrears;
otherwise penalties shall accrue as in the case of any other business.
(f) In all cases where the provisions of this section provide for the abatement of penalties imposed under
subsection (a), the amount owing in arrears and the amount of the accrued penalties shall be abated until
the combined amount of tax and penalty due is equalized to an amount equivalent to the amount of current
and prior years' taxes owing as computed or determined based upon the business license tax rates in effect
for the most current tax year.
(g) In determining the amount of penalty due for any person for whom an initial license period gross receipts in
lieu deposit is required in accordance with Sections 21-117, 21-118 or 21-118.1 the collector shall compute
City of Santa Ana RFP No. 23-165 Page 83 of 196
and apply the penalty due at the time that such person's initial period gross receipts report is filed and
computed in accordance with Section 21-117(c).
(h) However, no abatement of penalties or interest shall be permitted under this section in any case where such
person concurrently holds or has previously held a city business license or previously been given notice of
said requirement with regard to any business activity engaged in or conducted within the city.
(i) When any person is determined to be liable for delinquent business license taxes and such person fails to
properly procure the correct business license after being given notice to do so, the collector shall determine
the amount of delinquent business license taxes owed in accordance with Section 21-41. Penalties thereon
shall be accrued as applicable in accordance with this section. In determining the amount of tax due for any
business for whom the gross receipts of such business is made the basis for fixing the amount of such
business license the collector may base such determination upon an average of the reported gross receipts
of like businesses, similarly classified.
Any person required to obtain a city business license under the terms of this Chapter having been given
notice of the requirement to obtain a city business license under the terms of this section, whether by
personal service, or by a notice conspicuously posted upon the premises of such person's business, or by
notice given through the United States mail, who has not paid said business license tax or otherwise
obtained a valid business license, or applied for exemption therefrom and who has not applied for, or who is
not undergoing the process of a hearing or appeal pursuant to Section 21-41 or Chapter 3 of this Code shall
be deemed guilty of a misdemeanor violation. For the misdemeanor violation provision of this section to
apply, notice, when given by United States mail shall be mailed to the responsible person by certified mail,
postage prepaid with a requested return receipt. Simultaneously, the notice may be sent by first class mail. If
the notice is sent by certified mail and the return receipt is returned unsigned or refused, then service of
notice shall be deemed effective pursuant to first class mail, provided the notice sent by first class mail is not
returned.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13)
Sec. 21-26. Penalty for violation.
(a) Any person violating any of the provisions of this Chapter shall be deemed guilty of a criminal infraction
except where said violation is specifically deemed a misdemeanor.
(b) Every violation of the provisions of this Chapter determined to be a criminal infraction shall upon conviction
thereof be punishable by (1) a fine of one hundred dollars ($100.00) for a first violation; (2) a fine of two
hundred dollars ($200.00) for a second violation of the same provision within one year; (3) a fine of two
hundred fifty dollars ($250.00) for each additional violation of the same provision within one year. Each day
any such violation of any said provision of this Chapter shall continue shall constitute a separate offense.
(c) Every violation of the provisions of this Chapter deemed to be a misdemeanor, upon conviction thereof shall
be punishable as provided for in Section 1-8 of this Code. Each day any violation of any said provision of this
Chapter shall continue shall constitute a separate offense.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-27. Misrepresentation —Penalty.
Any person knowingly or intentionally misrepresenting to any officer or employee of the city any material
fact in applying for or paying for the business license herein provided for shall be deemed guilty of a misdemeanor
violation of this Chapter.
City of Santa Ana RFP No. 23-165 Page 84 of 196
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-28. Remedies cumulative.
The conviction and fine or imprisonment of any person for engaging in any business without first obtaining a
license to conduct such business shall not relieve such person from paying the business tax to conduct such
business, nor shall the payment of any business tax prevent a civil action or criminal prosecution for the violation
of any of the provisions of this Chapter. All remedies prescribed hereunder shall be cumulative and the use of one
or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions
hereof.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-29. Cancellation; right of licensee to request.
The collector shall cancel a valid unexpired license issued or granted to the licensee pursuant to this Chapter
at the request of the licensee provided:
(a) The licensee so endorses, signs and surrenders the business license receipt along with any applicable
decal, metalcal, sticker or tag, and
(b) All business activity pursuant to licensee's license has ceased.
Liability for any further business taxes shall cease only if the licensee's account is vacated pursuant to this
section.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-30. Requirement to obtain and furnish sales tax number; requirement to report gross
sales to the state; requirement to collect sales and use tax; requirement to pay
collected sales and use tax; requirement to report same separately to the city.
Any person who contracts, sells or delivers any goods, wares or merchandise in the city for which sales or use
tax is payable and who is required to report and pay such sales and use tax to the state shall obtain an appropriate
California State Board of Equalization permit and furnish the collector with his sales tax number and shall report
separately in his return to the state the amount of receipts from sales in the city and/or the receipts from sales for
use in the city and shall pay the required sales or use tax on such receipts. Any such person who fails to do so shall
be deemed guilty of a misdemeanor violation of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87)
ARTICLE III. COLLECTOR
Sec. 21-31. Collector; establishment of position.
There is hereby established the position of collector which shall include any position heretofore referred to
in this Chapter or any other chapter of this code as "license collector," "business tax collector," "business fee
collector," or any other term used to describe the office of the collector of business license taxes. Provided further
that to the extent that any other provision of this Code or any other city ordinance refers to the director of finance
City of Santa Ana RFP No. 23-165 Page 85 of 196
as the collector of business license taxes, such provisions shall be construed to require the execution of such duties
by the collector.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-32. Collector; ex officio collector of business license taxes.
The collector shall be ex officio business license tax collector.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-33. Collector; duty to enforce.
It shall be the duty of the collector to enforce each and all of the provisions of this Chapter, and the chief of
police, the chief building official, the chief fire official, and the city attorney shall render such assistance in the
enforcement hereof as may from time to time be required by the collector. Each department or division of the city
which issues permits or entitlements of use shall require the production of a valid unexpired business license
receipt or business license exemption receipt prior to the issuance of such a permit. Provided, however, that
nothing in this section shall be construed to require any person to obtain a license to do business within the city as
a prerequisite for the issuance of a city permit or entitlement of use if such requirement conflicts with any
applicable statutes of the United States or of the state.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-34. Collector; duty to certify general contractor's statement.
Every person acting as a general contractor, whether building for their own occupancy or not, shall file with
the collector a full, true and complete written statement, signed by such person, under penalty of perjury, listing
all subcontractors who have performed or shall perform any service whatsoever for such person within the city for
which a license is required under the provisions of this Chapter. Any builder -owner, general engineering
contractor, specialty contractor, or subcontractor, subcontracting any work shall be deemed a general contractor
for the purpose of this section. Said statement shall include the name, address, telephone number, state license
number and specialty classification of each person required to be licensed.
It shall be the duty of the collector or his or her designated representative to ascertain and certify that all
business tax liability of the general contractor and all subcontractors employed by the general contractor has been
duly satisfied.
Pursuant to Section 8-2 of this Code, no certificate of occupancy shall be issued, or final inspection provided
until the collector or his designated agent certifies that there has been complete compliance with the
requirements of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-35. Collector; duty to keep records.
The collector shall keep full, adequate and accurate records pertaining to the issuance of licenses under this
Chapter and the collection of all fees, penalties and other moneys in connection herewith. The collector shall keep
in his or her office a public ledger in which he or she shall keep the accounts of all licenses currently issued by him
or her and remaining in full force and effect.
(Ord. No. NS-1922, § 1, 7-20-87)
City of Santa Ana RFP No. 23-165 Page 86 of 196
Sec. 21-36. Collector; administration of oaths.
For the purposes of this Chapter, the collector, as chief revenue officer, and each and every duly authorized
revenue officer or authorized agent, is authorized to administer oaths.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-37. Collector; deposit of fees, charges and penalties.
All fees, penalties, charges and other moneys received by the collector pursuant to the provisions of this
Chapter shall be deposited in the general fund of the city upon the business day next following the receipt of the
same.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-38. Collector; printing of blank licenses, applications, reporting forms, notices and
other form correspondence.
The collector shall prepare printed blank licenses for all business conducted in the city for the term of twelve
(12) months, and for shorter terms authorized by this Chapter to be issued. The collector shall also prepare all
necessary printed applications, reporting forms and notices and other form correspondence.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-39. Collector; duty to determine business type or class.
The determination of which business or type or class of business a licensee or applicant is engaged in or
about to engage in shall be an administrative function of the collector.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-40. Collector; classification of businesses into categories.
The collector is authorized to establish a list of specific businesses that are included within each of the
categories set forth in general terms by this Chapter. This list shall be reviewed and updated periodically so as to
be all-inclusive as possible. The list shall be kept on file in the offices of the collector and the clerk of the council
and shall be available for use by the general public. The classification of any business into a general category shall
be at the determination of the collector. Any person aggrieved by the decision of the collector shall have the right
to a hearing pursuant to Section 21-41 and/or the right to an appeal to the city council for a final decision pursuant
to Chapter 3 of this Code.
(Ord. No. NS-1922, § 1, 7-20-87)
City of Santa Ana RFP No. 23-165 Page 87 of 196
Sec. 21-41. Collector; assessment of tax, penalties, interest, charges (including service fees),
determination of classification; notification of violation; right to hearing; hearing
service fee deposit.
(a) The collector shall determine the amount of license tax due, together with any penalties, interest, charges
(including service fees) that may be due and payable and/or the proper classification for a business by means
of such information as he or she may be able to obtain in the event:
(1) Any person fails to properly procure the correct business license prior to doing business in the city; or
(2) Any person engaged in transacting and carrying on business within the city fails to renew any business
license; or
(3) Any person fails to file any required statement within the time prescribed; or
(4) If, after demand therefor has been made by the collector, any person fails to file a corrected statement
within fifteen (15) days after notification to do so; or
(5) It appears to the satisfaction of the collector that a statement filed does not set forth the facts of the
business for which a license is required; or
(6) If a licensee or an applicant for a license believes that the business is not assigned to the proper
classification because of circumstances peculiar to it.
(b) In the case where such determination is made, the collector shall give notice of the amount so assessed, or
classification found to be appropriate in the following manner:
(1) By serving it personally, or causing it to be served personally by a duly authorized agent; or
(2) By depositing it in the United States Mail, postage prepaid addressed to the person so assessed at their
address of record.
(c) Any person receiving a determination made by the collector pursuant to this section regarding the amount of
tax owed, or classification found to be appropriate, may, within fifteen (15) days after the serving or mailing
of such notice, make application in writing to the collector for an administrative hearing, hereinafter
("hearing") by completing and filing a "request for hearing" form with the collector. Request for hearing
forms shall be made available in the office of the director of finance and clerk of the city council. A failure to
file a timely "request for hearing" form shall be deemed a waiver of the right of appeal. Provided, further
that any person seeking a hearing under this section shall first deposit with the collector a hearing service fee
to be specified by resolution of the city council to cover the city's cost in providing an administrative hearing
officer, hereinafter ("hearing officer").
(d) All hearings conducted pursuant to this section shall be heard by the same hearing officer who has been
appointed by the Santa Ana city manager pursuant to Section 1-28.8 of this Code.
(e) Hearing procedures for hearings conducted pursuant to this section shall be as follows:
(1) No hearing to contest a determination of the collector before a hearing officer shall be held unless and
until a timely "request for hearing" form has been completed and filed with the collector, and
(2) After receipt of the "request for hearing" form and deposit of the hearing service fee, a hearing before
the hearing officer shall be set for a date that is not less than fifteen (15) and not more than sixty (60)
days from the date that the "request for hearing" is filed in accordance with the provisions of this
section. The person requesting the hearing shall be notified at least ten (10) days prior to the date of
the hearing. The failure of any person to appear at the hearing shall constitute a forfeiture of the
City of Santa Ana RFP No. 23-165 Page 88 of 196
administrative hearing service fee deposit and shall be a bar to judicial review of the hearing officer
decision based upon failure to exhaust administrative remedies.
(3) At such hearing the person may appear and offer evidence why the collector's specified tax amount
should not be fixed as the license tax amount or why such classification prescribed by the collector as
the applicable tax classification should not be fixed. Formal rules of evidence shall not apply.
(4) Upon request, the person requesting the hearing shall be provided with reports and other documents
relied upon by the collector in making his or her determination. In addition, if the collector, duly
authorized revenue officer, or other individual appearing at the hearing as the agent of the collector
submits any additional written reports to the hearing officer for consideration at the hearing, then a
copy of said documentation shall also be served by mail on the person requesting the hearing.
(5) The hearing officer may continue the hearing and request additional information from the collector
prior to issuing a written decision.
(6) After such hearing, the hearing officer shall determine the proper tax to be charged or classification
prescribed and shall forthwith give written notice to the person requesting the hearing in the manner
prescribed herein of such determination and the amount of such tax.
(f) Hearing officer's decision. After considering all of the testimony and evidence submitted at the hearing, the
hearing officer may immediately issue a verbal decision or may issue a written decision within fifteen (15)
days of the hearing. The decision shall include the reasons for the decision and such decision shall be final.
(g) If the hearing officer fixes the amount of the tax, penalty, interest, charges, service fees or the tax
classification in accordance with the original written determination of the collector, then the amount as
finally determined shall be immediately due and payable and/or the classification shall be immediately
applicable, and the hearing service fee shall be forfeit. If the hearing officer determines the amount of the
tax, penalty, interest, charges, service fees or the tax classification to be applicable in accordance with the
original statement of the person requesting the hearing then the amount due and payable and/or the
classification applicable shall be as set forth in such person's original statement and the collector shall refund
the hearing service fee deposit. If the hearing officer fixes the amount of the tax, penalty, interest, charges,
service fees and/or the tax classification to be applied in some other manner the hearing officer shall also
make a written determination as to fixing the amount of tax, penalty, interest, charges, service fees and/or
the tax classification applicable and shall indicate the disposition of the hearing service fee deposit.
(h) Any person who is aggrieved by the decision of the hearing officer may obtain judicial review of such decision
in the manner provided under Section 1-21.9 of this Code.
(i) In the event no application for a hearing is filed within the time prescribed, the decision of the collector shall
become final and conclusive on expiration of the time herein fixed for hearing and shall render any
subsequent appeal null and void and shall further act as a waiver against future action.
(j) Notwithstanding any other provision contained in this Chapter or any other provision contained in this code
to the contrary, any person voluntarily tendering payment of any license tax, interest, or penalties to the city
pursuant to any provision of this Chapter shall for all purposes thereafter be precluded and barred from
appealing, contesting or otherwise challenging the validity or amount of any such tax, interest or penalties
pursuant to any otherwise available procedure set forth in this Chapter, or otherwise available by law, unless
said payment is made under written protest to the city. Said written protest shall be deemed made for the
purposes of this Chapter only by one (1) of the following methods: (1) a written notation set forth on the
check, draft, money order, or other negotiable instrument by which payment is tendered, indicating that
such payment is made under protest; or (2) a written notice addressed and delivered to the collector at the
time of payment indicating that such payment is made under protest. Provided, however, that this
subsection shall not bar a request for refunds authorized pursuant to Section 21-87 of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13)
City of Santa Ana RFP No. 23-165 Page 89 of 196
Sec. 21-42. Collector; necessary rules and regulations.
In addition to all other powers conferred upon him or her the collector shall have the power to make rules
and regulations not inconsistent with the provisions of this Chapter as may be necessary or desirable to aid in the
enforcement of the provisions of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-43. Collector; extension of time for filing —Compromise of claims; waiver of claims.
(a) The collector shall have the power to extend the time for filing any required application, affidavit, statement
or report and remitting of any taxes or other monies owing for a period of up to six (6) months. In connection
with that authority the collector shall also have the power to extend the time for giving notification of tax
renewal and to extend the time that any previously issued license shall remain valid. The collector may in his
or her discretion exercise this authority on a case -by -case basis in connection with any individual applicant or
licensee, or other individual person subject to the requirements of this Chapter. The collector may also
exercise this authority on a class -by -class basis in connection with any category, class or subclass of
assessment or any category, class or subclass of applicants, licensees, or other persons subject to the
requirements of this Chapter, or any persons subject to any applicable business license tax surcharge or
surtax or other business license related assessment or fee required or authorized under the general laws of
the state.
(b) The collector shall have the further power, for good cause shown, to compromise any claim, or class of
claims, as to the amount demanded or owing.
(c) The collector, shall have the further authority to settle, discontinue, or waive the collection of any claim, or
class of claims, for good cause shown, or if it appears that further proceedings would be without merit, or if
the administrative or legal cost therefor would be excessive, or if the amount of the claim in question is de
minimus. A claim, or class of claims, shall be deemed to be de minimus whenever the total amount of the
claim is determined by the collector to be equal to or less than the total anticipated administrative costs
associated with collecting said amount. The collector may in his or her discretion determine this amount on a
case -by -case basis or on a class -by -class basis. In accordance with Section 21-42 the collector may adopt
administrative rules, regulations, and guidelines, relating to the settlement, discontinuance, or waiver of
claims arising pursuant to this Chapter.
(d) In connection with the exercise of the power and authority hereinabove provided to the collector, he or she
in their discretion, shall have the right to allow the payment of any taxes or other monies owed to the city by
installment without penalty, interest or other administrative charge on a case -by -case basis or class -by -class
basis. In accordance with Section 21-42 the collector may adopt administrative rules, regulations, and
guidelines, relating to the acceptance of installment payments.
(e) Moreover, to effectively implement the intent of the general provisions of this Chapter the collector in his or
her discretion may vary the strict procedural, enforcement, deposit, or other administrative requirements of
this Chapter on a case -by -case or class -by -class basis in any manner.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13)
Sec. 21-44. Collector; additional power.
In addition to all other powers conferred upon him or her, the collector shall have the power, for good cause
shown, to waive or reduce any penalty or late interest imposed, or deposit, or charge, or service fee demanded.
City of Santa Ana RFP No. 23-165 Page 90 of 196
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13)
Sec. 21-45. Collector; authority to suspend and revoke licenses.
The collector shall have the authority and duty to suspend or revoke any license granted or issued under the
provisions of this Chapter at any time for any of the following:
(a) A material false statement contained in the application for a new license or in the application for a
renewal license granted or issued under the provisions of this Chapter, or in any affidavit or statement
required to be filed under the provisions of this Chapter, or
(b) Upon the determination that the licensee has not paid the tax required to be paid as a condition for
the issuance of the license, pursuant to the procedures set forth in Section 21-86.
Any person transacting and carrying on any business during any period of license suspension shall be
deemed to be doing so under an invalid license. Any person transacting and carrying on business during any period
of license revocation shall be deemed to be doing so without a license. Provided further, that any person
transacting and carrying on business during any period of license revocation or suspension shall be refused any
permits or entitlements of use the issuance of which requires the production of a valid unexpired business license.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-46. Collector; authority to issue citations.
The collector, as chief revenue officer, and each and every duly authorized revenue officer of the city have
the duty to enforce this Chapter and are authorized to arrest persons without a warrant whenever they have
reasonable cause to believe that the person to be arrested has committed a violation of said provisions in their
presence. In any case in which a person is arrested pursuant to this section and the person arrested does not
demand to be taken before a magistrate, said officer making the arrest shall prepare a written notice to appear
and release the person on his or her promise to appear as prescribed by Chapter 5C Title III of Part 2 of the Penal
Code of the State of California (commencing with Section 853.6).
(Ord. No. NS-1922, § 1, 7-20-87)
ARTICLE IV. EXEMPTIONS
Sec. 21-47. Conflicts with federal or state law.
Nothing in this Chapter shall be deemed or construed to apply to any person transacting or carrying on any
business exempt from business license taxes by virtue of the constitution or applicable statutes of the United
States or the state.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-48. Business licensing —Specified exemptions.
(a) A business license shall not be required for the conducting of any entertainment, concert, exhibition or
lecture on scientific, historical, literary, religious or moral subjects whenever the receipts of any such activity
are to be appropriated to any church or school or to any religious or benevolent purpose within the city.
City of Santa Ana RFP No. 23-165 Page 91 of 196
(b) A business license shall not be required for any person under eighteen (18) years of age, who is a resident of
the city, and who is enrolled in an institution of secondary education; provided, however, such person has no
employee or employees working for him or her.
(c) A business license shall not be required for any attorney whose only business done in the city is in the courts
operated in this city, nor for any doctor whose only business done in the city is surgery and/or consultation
in a regularly established hospital in the city; provided, however, that the maintenance of an office, facility,
or establishment within the city used in connection with any attorney's appearance in any court within the
city, or any doctor's surgery or consultation performed at any hospital within the city shall not be hereby
exempted from the city's business licensing requirements.
(d) A business license shall not be required for any other licensed person providing professional services not
having a fixed place of business within the city and not engaged in other than the occasional furnishing of
professional services wholly negotiated and contracted for outside the city.
(e) A business license shall not be required for any business done in the city where the business conducted is
only occasional and incidental to a regularly established business conducted elsewhere.
(f) A business license shall not be required for any commercial traveler whose business is limited to goods,
wares, and merchandise sold or dealt in at wholesale in this state, or for any salesman or agents representing
vendors which have, do, or would normally supply goods for resale to licensees of the city.
(g) A business license shall not be required for any individual whose business is limited to providing in -home
childcare to immediate or extended family members. The phrase "immediate or extended family members"
shall mean such individual's direct children, children by adoption, children by marriage, grandchildren (direct,
by adoption, or by marriage), nieces or nephews (direct, by adoption, or by marriage), and any foster
children or other minor under eighteen (18) years of age living as part of the same residential household.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3031, § 3, 11-8-22)
Sec. 21-49. Business licensing —Specified exclusions.
Except as may be otherwise specifically provided in this Chapter, the terms hereof shall not be deemed to
apply or construed to require the payment of a license tax by any of the following persons:
(1) Banks, including national banking associations, federal credit unions, and financial corporations, to the
extent that a city may not levy a license tax upon them under the provisions of Article XIII, Section 27 of
the State Constitution.
(2) Insurance companies or associations engaged in the sale and servicing of insurance and their direct
agents, including bailbond agents and life agents, but not including brokers or bailbond brokers or life
and disability insurance analysts or insurance solicitors to the extent that a city may not levy a license
tax upon them under the provisions of Article XIII, Section 28 of the State Constitution.
(3) Any governmental agency or subdivision and the employees thereof, to the extent they are engaged in
the business of such governmental agencies or subdivisions.
(4) Any state alcoholic beverage licensee engaged in the manufacture, sale, purchase, possession, or
transportation of alcoholic beverages within the state to the extent that a city may not levy a license
tax upon them under provisions of Article XX, Section 22 of the State Constitution.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13; Ord. No. NS-3031, § 3, 11-8-22)
ARTICLE V. FEE -EXEMPT
City of Santa Ana RFP No. 23-165 Page 92 of 196
Sec. 21-50. Disabled veterans.
Every person who has been honorably discharged from military service of the United States and who is
exempted from the payment of business license taxes by statute of the 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 this license tax; subject however to the restrictions, limitations, regulations
and conditions hereinafter set forth.
(1) Every applicant must furnish a certificate of physical disability executed by a qualified physician or
submit equivalent evidence of disability.
(2) Every applicant must submit to being photographed by the city police department. One copy of said
photo shall be permanently affixed to the license issued to said applicant and another copy shall be
transmitted to the collector for attachment to the portion of the license application retained by him.
The applicant must also sign both the application and the license at the time of the issuance thereof.
(3) A license, when issued, is subject to the following conditions:
(i) Said license shall not be defaced, mutilated, disfigured or otherwise altered subsequent to its
issuance; and failure to comply herewith is grounds for revocation of said license and for refusing
its renewal or the issuance of a new license thereafter.
(ii) It is nontransferable and for the exclusive use of the licensee named.
(iii) Should a license be found in the possession of one other than the licensee named, it shall be
surrendered to the collector and revoked and neither the licensee named nor the holder thereof
shall thereafter be entitled to hold a license under the provisions of this section.
(iv) The licensee named must identify himself by his signature whenever required to do so by any city
police officer, or any authorized agent of the collector.
(v) Every license issued under the provisions of this section shall expire on the 31st day of December
of the current year; provided however that a license newly issued on or after November 1st of
the current year shall expire on the 31st day of December of the next year.
(vi) It shall be unlawful for any person other than the licensee named to use or have in his possession
any license issued pursuant to the provisions of this section.
(vii) It shall be unlawful for any person to purchase or transfer any license issued pursuant to the
provisions of this section or for any person to transfer or convey the certificates mentioned in
this section to any other person for the purpose of securing a license as herein provided.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-51. Nonprofit organizations.
The provisions of this Chapter shall not be construed to require the payment of a license fee to conduct any
business, occupation or activity or require the payment of any license fee from any institution or organization
which currently has or is eligible for an exemption from the payment of federal income taxes under Section 501 of
the Federal Internal Revenue Code as amended from time to time and/or exemption from the payment of state
income taxes under Section 23701 et seq. of the California Revenue and Taxation Code as amended from time to
time. An institution or organization claiming a license fee exemption under this section has the burden of
furnishing to the collector such information as the collector may require to support the claim of eligibility for
exemption.
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Nothing in this section shall be construed to relieve an institution or organization which is eligible for or
claims to be eligible for exemption from payment of a business license fee from the requirement to obtain a
business license as provided in Section 21-52 of this Code.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-52. Same —Business license required; exceptions.
Any person, institution or organization claiming exemption from the payment of a business license fee under
Section 21-50 shall, nevertheless, apply to the collector for a business license in the same manner, and at the same
time as is required in this Chapter of all other persons applying for a business license and shall be subject to the
same procedures for enforcement and to the same penalties as provided herein.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-53. Minimum gross receipts —Gratuitous license charge.
The provisions of this Chapter shall not be deemed or construed to apply to any person doing business in the
city on a continuing but part-time basis whose gross receipts therefrom do not exceed the annual qualifying
threshold amount per year as set forth in Section 21-120m(a). Any person claiming exemption under this Section
shall be required, however, to provide information to the collector or his authorized agent of such nature and in
such manner, and at such time as is required in this Chapter of persons applying for a business license and shall be
subject to the same procedures for enforcement and for penalties as are provided herein. Provided, further that an
annual charge as set forth in Section 21-120m(b) shall be due and payable for the issuance of a gratuitous license
receipt.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 5, 6-21-22)
Sec. 21-54. Hobby —Gratuitous license charge.
The provisions of this Chapter shall not be deemed or construed to apply to any person engaged in hobby
activity in the city. Any person claiming exemption under this Section shall be required, however, to provide
information to the collector or his authorized agent of such nature and in such manner, and at such times as is
required in this Chapter of persons applying for a business license and shall be subject to the same procedures for
enforcement and for penalties as are provided herein. Provided further, that an annual charge as set forth in
Section 21-120h(2) shall be due and payable for the issuance of a gratuitous license receipt.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 5, 6-21-22)
Sec. 21-55. Fee -exempt licenses —Limitations.
(a) Every license issued without payment of the usual fee shall be stamped "Fee -Exempt" upon its face.
(b) Any license issued as fee -exempt shall be subject to suspension and revocation by the collector in the event
that it is determined by the collector that the applicant is not entitled to exemption. All such suspensions and
revocations shall be made after notice and right to a hearing pursuant to Section 21-41.
(c) Any license issued as fee -exempt shall be void and shall afford no defense in any civil or criminal prosecution
if any material statement contained in the application, statement of facts or any other document or
representation made to the collector in claiming the exemption is false or fraudulent.
(d) No fee -exempt license may be transferred or loaned.
City of Santa Ana RFP No. 23-165 Page 94 of 196
(e) Upon uncertainty, for lack of information or otherwise, as to the entitlement of any organization or activity
to a fee -exempt license, the collector may require the filing of a verified report of all funds received and
disbursed by any licensee. Upon demand such licensee shall file said report in the form and detail as required
by the collector within fifteen (15) days after demand.
(Ord. No. NS-1922, § 1, 7-20-87)
ARTICLE VI. APPORTIONMENT
Sec. 21-56. Constitutional apportionment.
None of the business taxes provided for by this Chapter shall be so applied so as to occasion an undue
burden upon interstate commerce or be violative of the constitutions of the United States and/or the State of
California.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-57. Apportionment; necessary rules and regulations.
When, by reason of the provisions of the Constitution of the United States or the Constitution of the State of
California, the business tax imposed by the provisions of this Chapter cannot be enforced as to any single class or
set of classes of business or business activity without there being an apportionment according to the amount of
business done in the city, or in the State of California, as the case may be, the collector, having first obtained the
approval of the city attorney shall make such rules and regulations for the apportionment of the tax as are
necessary or otherwise desirable to overcome the constitutional objections.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-58. Burden on interstate commerce; petition for adjustment.
In any case where a license tax is claimed by a licensee, or applicant for license to place an undue burden
upon interstate commerce, or be violative of the constitutions of the United States and/or the State of California,
he or she may apply to the collector for an adjustment of the tax so that it shall not be discriminatory or
unreasonable as to such commerce. Such application may be made before, at, or within six (6) months after
payment of the prescribed license tax. The applicant shall by affidavit and supporting testimony show his or her
method of business and the gross volume or estimated gross volume of business and such other information as the
collector may deem necessary in order to determine the extent, if any, of undue burden on such commerce. The
collector shall then conduct an investigation and, having first obtained the approval of the city attorney, shall fix as
the license tax for the applicant an amount that is reasonable and nondiscriminatory. If the license tax has already
been paid, he or she shall order a refund of the amount over and above the license tax so fixed. In fixing the license
tax to be charged, the collector may base the license tax upon a percentage of the gross receipts of any other
measure which will assure that the license tax levied shall be uniform with that levied on businesses of like nature
so long as the amount levied does not exceed the license tax as prescribed by this Chapter. Should the collector
determine the gross receipts measure of business tax to be the proper basis, he or she may require the applicant
to submit, either at the time of termination of the applicant's business in the city, or at the end of each twelve (12)
month period, a verified affidavit of the gross receipts and payment of the amount of license tax therefor;
provided that no additional license tax during any one calendar year shall be required after the licensee has paid
an amount equal to the annual license tax as prescribed in this Chapter.
City of Santa Ana RFP No. 23-165 Page 95 of 196
The collector shall, upon proper showing contained in the verified affidavit, cause the issuance of a license to
such person showing partial exemption under this section with a license tax based upon the approved reduced
gross receipts.
The collector after giving notice and a reasonable opportunity for hearing to a licensee, shall revoke any
license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the
exemption as provided herein.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-59. Undue burden on intercity commerce; petition for adjustment.
None of the license taxes provided for in this Chapter shall be so applied as to occasion an undue burden
upon any business done in the city, where the business conducted is related to a regularly established business
conducted elsewhere. In any case where a license tax is claimed by any licensee or applicant for license to place an
undue burden upon such commerce, he or she may apply to the collector for an adjustment of the tax so that it
shall not be discriminatory or unreasonable as to such commerce. Such application may be made before, at, or
within six (6) months after payment of the prescribed license tax. The applicant shall by affidavit and supporting
testimony show his or her method of conducting business, the gross volume of business inside the city, and such
other information as the collector may deem necessary in order to determine the extent, if any, of undue burden
of such commerce. The collector shall then conduct an investigation, and, after having first obtained the written
approval of the city attorney, shall fix as the business tax for the applicant an amount that is reasonable and
nondiscriminatory. If the license tax has already been paid, he or she shall order a refund of the amount over and
above the license tax so fixed. In fixing the license tax to be charged, the collector may base the license tax upon a
percentage of gross receipts from business conducted inside the city or any other measure which will assure that
the business tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount
assessed does not exceed the business tax as prescribed by this Chapter. Should the collector determine the gross
receipts measure of business tax to be the proper basis, he or she may require the applicant to submit, either at
the time of termination of applicant's business in the city, or at the end of each twelve (12) month period, a
verified affidavit of the gross receipts and payment of the amount of license tax therefor; provided that no
additional license tax during any one calendar year shall be required after the licensee has paid an amount equal to
the annual license tax as prescribed in this Chapter.
The collector shall, upon proper showing contained in the verified affidavit, cause the issuance of a license to
such person showing partial exemption under this section with a license tax based upon the approved reduced
gross receipts.
The collector after giving notice and a reasonable opportunity for hearing to licensee, shall revoke any
license granted pursuant to this section upon information that the person is not entitled to the adjustment as
provided herein.
(Ord. No. NS-1922, § 1, 7-20-87)
ARTICLE VII. PROCEDURE
Sec. 21-60. Application; auto registration —Service fee.
Before any license is issued, the applicant shall make a written application to the collector, which shall
contain the following information:
City of Santa Ana RFP No. 23-165 Page 96 of 196
(1) The exact nature or kind of business, profession, show, exhibition, game, occupation or enterprise for
which the license is requested;
(2) The place where such business, profession, show, exhibition, or enterprise is to be carried on; and if
the same is not to be carried on at any permanent place of business, the residence address, identified
as such, of the owners of the same;
(3) The address where the applicant shall consent to receive mail concerning the license applied for;
(4) Where any person contracts, sells or delivers any goods, wares or merchandise in the city for which
sales or use tax is payable, the application shall set for the appropriate California State Board of
Equalization permit number;
(5) Where any person employs others in the course of such business the application shall set forth the
appropriate federal and/or state employer identification number;
(6) Where any person conducting any business is self-employed, or is conducting business as a spouse or
joint -owner or in any other capacity not requiring a federal and/or state employer identification
number the application shall set forth the social security number of the applicant(s). Where any such
applicant is not in possession of a social security number the collector in his or her discretion may
accept another form of personal identification sufficient to properly identify such applicant;
(7) In the event that the application is made for the issuance of a license to a person doing business under
a fictitious name, the application shall set forth the names and places of residence of those owning said
business or enterprise;
(8) In the event that the application is made for the issuance of a license to a person doing business as a
state licensed contractor, the application shall set forth the applicant's state contractor's license
number and specialty classification;
(9) In all cases where the amount of tax to be paid is based upon the number of persons employed, or
upon the number of vehicles used, or upon the number of rental units in any building or structure, or
upon the seating capacity of any auditorium, stadium or enclosure, or upon the number of coin -
operated machines or devices, or upon any amount or number which furnishes the basis for
determination of the license tax for the particular business referred to in the application, such items
must be stated on the application; provided that a newly established business shall make a true
estimate or statement of such information and the business tax shall be based upon said estimation
and shall be paid at the time such license is issued;
(10) Any further information which the collector may require to enable him or her to issue the type of
license applied for;
(11) Any further information which the state may require, or any further information which the collector
may deem necessary to properly identify the applicant;
(12) A signed statement made under penalty of perjury that the statements therein are true and correct,
which statement shall be required to be filed with the collector upon submission of any original license
application, annual renewal statement, miscellaneous supplementary statement, or other return or
filing. Each such declaration of truth of application or statement shall have included therein, or
attached thereto, a certification or declaration, which shall be substantially in the following form:
I declare, under penalty of perjury; that this application, return or statement (including any
accompanying schedules, statements, and supporting data) has been examined by me, and, to the best
of my knowledge, information, and belief, is a full true and correct application, return, or statement
and I accordingly so represent.
City of Santa Ana RFP No. 23-165 Page 97 of 196
(Signature of Owner, or Partner, or Officer of
(Date)
Corporation, or Other Authorized Agent or
Representative of any of the above said same)
(13) In the case of applications submitted via email, the collector in his or her discretion may accept a
facsimile copy of the applicant's signature;
(14) In the case of applications submitted via other electronic means, the collector in his or her discretion
may accept a digital signature or other unique personal identification number (PIN) verification.
All information specified to be set forth on any application form prescribed by the collector shall be
submitted completely and accurately and the license shall be deemed based upon the information submitted and
represented. The collector shall not be required to receive or consider, any application, return or statement unless
the above quoted declaration, in substantially the form hereinabove set forth, is contained therein or attached
thereto and properly executed by the applicant or the authorized agent or representative of the applicant, and it is
unlawful and shall be deemed a misdemeanor in any such application, return or statement for such applicant or
authorized agent or representative of the applicant to make any statement which is false or which is contrary to
the declaration or representation made in the above quoted form.
Any license shall be deemed based upon the application on file, and if the information is incomplete or
inaccurate, the license shall be deemed invalid. If information submitted in an application subsequently becomes
incomplete or inaccurate by reason of a change in circumstances, the license shall thereafter be deemed invalid.
Upon the collector's learning of any inaccuracy or incompleteness, notice shall be given forthwith to the licensee,
at the address shown on the license where the licensee consented to receive information concerning his or her
license, that the license is invalid and requesting the licensee to reapply for a re -validated license within thirty (30)
days.
Upon the licensee's successful application for a re -validated license within the period hereinabove set the
collector shall apply pro rata to the re -validated license the remainder of the sum originally paid by the licensee.
Upon the licensee's failure to make successful application for a re -validated license within the period
hereinabove set the collector shall give notice forthwith pursuant to Section 21-86 that the licensee's license is
hereby suspended. Thereafter, upon denial of licensee's appeal it shall be revoked whereupon the licensee's
original payment shall be forfeit.
Any person refusing or failing to make application or to provide information required shall be assessed an
amount pursuant to Section 21-41, and shall be in violation of this Chapter. The collector, upon making an
assessment pursuant to Section 21-41, may in his or her discretion autoregister a license account in the name of
any such person for purposes of assessing business license taxes, penalties, interest, charges, and service fees as
applicable. Whenever the collector shall cause a license account to be registered an autoregistration service fee
shall be applicable in the amount as specified by resolution of the city council.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13)
Sec. 21-61. Application processing charge.
A minimum charge is required for the processing of any initial or renewal license application. This charge
shall be in addition to the business license tax and shall not be prorated. The charge shall not be refunded if the
application is rejected. However, if after receipt of applicant's written notification of cancellation, no required
inspection or investigation has taken place pursuant to any applicable provision of this Code, and no business
activity has been transacted or carried on, then in that event a refund request for all inspection or investigation
fees paid exceeding the amount specified in Section 21-120r(2) may be made pursuant to Section 21-87(d). In no
City of Santa Ana RFP No. 23-165 Page 98 of 196
event, however, shall the application processing charge be made refundable, other than as part of a refund made
pursuant to Section 21-87(b). Provided further, that the collector may waive the processing charge in the case of a
bonafide nonprofit, charitable, or otherwise fee -exempt licensee.
The provisions of this Chapter notwithstanding, the following application categories shall pay an application
processing charge as stated below:
(a) Initial period application processing charge in the amount specified in Section 21-120i(2).
(b) Renewal application processing charge in the amount specified in Section 21-120r(2).
(c) Re -validation application processing charge in the amount specified in Section 21-120r(7).
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2131, § 1, 7-15-91; Ord. No. NS-3028 , § 6, 6-21-22)
Sec. 21-62. Contents of license.
All licenses, unless otherwise provided in this Code, shall be prepared and issued by the collector upon the
payment to the city of the sum required to be paid hereunder, or upon filing of proof satisfactory to the collector
of eligibility for exemption from such payment. Each license so issued shall state upon the face thereof the
following:
(1) The license number of the license.
(2) The date of expiration of such license.
(3) The persons to whom the same is issued, or where the said persons are doing business under a
fictitious name; both the actual and fictitious names to whom the same is issued.
(4) The kind of business, profession, show, exhibition, game, occupation or enterprise licensed and the
location of the same.
(5) Where said business involves the contracting, sale, or delivery of any goods, wares or merchandise in
the city for which sales or use tax is payable to the state the state sales tax number issued to same.
(6) A statement that the holder thereof has paid a license fee or a statement that the holder thereof is
exempt from such payment; and said license when issued, shall be deemed the receipt for said
payment received by the city.
(7) A statement that this license is issued without verification that the licensee is subject to or exempt
from licensing by the State of California.
(8) Any additional statement the collector may deem necessary or which the state may require.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-63. Statement of fee; mistake not conclusive.
(a) No greater or lesser amount of money shall be charged or received for any license tax other than provided
for in this Chapter. In no case shall any mistake of the collector in stating the amount of a license tax, or of
penalties, or interest accrued thereon prevent or prejudice the collection by the city of what should actually
be due from any person carrying on a business subject to a license tax under this Chapter. No statement shall
be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the city from
collecting by appropriate action such sum as is actually due and payable hereunder.
City of Santa Ana RFP No. 23-165 Page 99 of 196
(b) Where a mistake is made in the issuance of any license with regard to the classification under which said
license was issued, then a new license shall be issued in the proper classification in lieu thereof, under the
date of the original license, and the licensee shall pay an additional amount required by such a change.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-64. How and when payable; effect of dishonored instrument; return payment service
fee.
All business license taxes or deposits in lieu thereof due hereunder shall be paid in advance, in lawful money
of the United States, or by check, draft or other instrument in the discretion of the collector, at the office of the
collector in the finance department of the city. No business license shall be issued or renewed until the amount
due and payable has been paid in full. Any license, the fee for which has been paid by an instrument such as a
check, or draft which is dishonored upon presentation for payment, shall be void and of no effect from its
inception. The collector, may, in his or her discretion, withhold the effect of this provision if the fee is paid within
fifteen (15) days. Payment of license fees following a dishonor of such instrument upon presentation for payment
shall thereafter be made only by cashier's check, money order or cash, which fee shall include any applicable
penalty, as well as a return payment service fee in the amount as specified by resolution of the city council for such
dishonored instrument. The collector shall be authorized to reject payment other than by cash, cashier's check or
money order from such licensee for a period of two (2) years following any such dishonor.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13)
Sec. 21-65. Same —Method of computation.
In computing the amount of tax to be paid under this Chapter, the amount shall be rounded off to the
nearest dollar as follows: If the remaining fraction of a dollar is forty-nine cents ($0.49) or less, such fraction shall
be waived; if the remaining fraction of a dollar is fifty cents ($0.50) or more, the next highest full dollar shall be
charged.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-66. Same —Application of money towards delinquent fees.
Money received during the current year for a license shall first be applied to the payment of delinquent fees,
sums and penalties due during any preceding calendar year, any balance remaining thereafter shall be applied to
the payment of the current license fees and penalties. A license issued during any prior year to the same owner,
tenant or occupant for the same place of business shall be prima facie evidence in any court or administrative
proceeding that the business was continuously operated by the same person or firm from said prior year to the
current year.
(Ord. No. NS1922, § 1, 7-20-87)
Sec. 21-67. Nontransferable, change of name or location.
(a) No license issued pursuant to this Chapter shall be transferable or assignable; provided, that where a license
is issued authorizing a person to conduct a business at a particular place, such licensee may upon application
therefor and upon paying a charge in the amount specified in Section 21-120c(2) have the license amended
to authorize the conducting of such business under said license at some other location to which the business
is or is to be moved.
City of Santa Ana RFP No. 23-165 Page 100 of 196
(b) Provided that where a person holding a license issued under the provisions of this Chapter changes the name
of the business, such person shall upon changing the name make an application to the collector and pay a
charge in the amount specified in Section 21-120c(3) to have said license amended to reflect the change in
name.
(c) Provided further that transfer, whether by sale or otherwise, to another person under such circumstances
that the real or ultimate ownership after the transfer is substantially similar to the ownership existing before
the transfer, shall not be prohibited by this Section. For the purpose of this Section stockholders,
bondholders, partnerships, or other persons holding an interest in a corporation or other entity herein
defined to be a person are regarded as having the real or ultimate ownership of such corporation or other
entity.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 6, 6-21-22)
Sec. 21-68. Use of license by unlicensed person.
No person holding a license required by this Chapter shall permit any unlicensed independent contractor,
itinerant merchant, or other person to use the license, the licensed premises or the licensee's name for the
purpose of evading payment of any license tax or of evading any other provision of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-69. Duplicates.
A duplicate license may be issued to replace any license previously issued hereunder which has been lost or
destroyed upon the licensee filing a statement of such fact, and, at the time of filing such statement, paying a
duplicate license charge in the amount specified in Section 21-120d(5).
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 6, 6-21-22)
Sec. 21-70. Posting; public display; keeping on person.
(1) Any licensee transacting and carrying on business at a fixed place of business in the city which is open to the
public shall keep the license prominently posted in a conspicuous and public place upon the premises where
such business is carried on. Provided further that any licensee transacting and carrying on business at a fixed
place of business in the city which is closed to the public shall nevertheless keep the license posted in a
conspicuous and accessible place upon the premises where such business is carried on.
(2) Any licensee transacting and carrying on business at a fixed place of business in the city without an agent or
employee on the premises shall post in a conspicuous place the name, address and telephone number of the
person or persons to be contacted to verify the possession of a proper and valid license.
(3) Any licensee transacting and carrying on business but not operating at a fixed place of business in the city
shall keep the license within his or her possession at all times while transacting and carrying on such
business.
(4) Whenever the city shall provide a special tag or plate for the identification of a vehicle for which a business
license tax has been paid, such tag or plate shall be affixed to the vehicle in accordance with the pertinent
regulations of the collector.
(5) Whenever the city shall provide a special decal, metal -cal or label for the identification of a coin -operated
machine or device for which a business license tax has been paid, such decal, metal -cal or label shall be
affixed to the machine or device in accordance with the pertinent regulations of the collector.
City of Santa Ana RFP No. 23-165 Page 101 of 196
(6) Any person having a license under the provisions of this Chapter shall produce and exhibit same whenever
required to do so by any revenue officer or police officer, or by any other officer or official or employee
authorized to inspect licenses or by any person being solicited.
(7) No person shall exhibit a revoked business license.
(8) No person shall reproduce, duplicate, copy or alter an original business license for the purpose of
circumventing the requirement of this section by giving a false or misleading impression that any duplication
of an original city business license is valid and that the appropriate fee therefor has been paid.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-71. Term of license; renewal; annual and quarterly.
All annual license renewals shall be for the period of twelve (12) months as specified hereinafter.
(a) All annual license renewals based upon a flat rate shall be for the twelve-month period beginning
January first of the current year and shall expire on the thirty-first day of December of the current year.
(b) All annual license renewals based upon a variable flat rate shall be for the twelve-month period
beginning July first of the current year and shall expire on the thirtieth day of June of the following
year.
(c) All annual license renewals based upon gross receipts shall be for the twelve-month period beginning
on April first of the current year and shall expire on the thirty-first day of March of the following year.
(d) All quarterly licenses shall be for the period of three (3) months beginning on the first day of January
and ending on the thirty-first day of March; on the first day of April and ending on the thirtieth day of
June; on the first day of July and ending on the thirtieth day of September; on the first day of October
and ending on the thirty-first day of December.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2161, § 1, 6-15-92)
Sec. 21-72. Term of license; new; annual and quarterly.
(a) All new annual licenses issued and based upon a flat rate shall be for the period of time remaining in the
twelve-month period beginning January first of the current year and shall expire on the thirty-first day of
December of the current year; provided, however, that all new annual licenses issued between December
first of the current year and December thirty-first of the current year shall be for the period of the month of
December of the current year as well as the entire period of the following twelve (12) months ending on
December thirty-first.
(b) All new annual licenses issued and based upon a variable flat rate shall be for the period of time remaining in
the twelve-month period beginning July first of the current year and shall expire on the thirtieth day of June
of the following year; provided, however, that all new annual licenses issued between May first of the
current year and May thirty-first of the current year shall be for the period of the month of May of the
current year as well as the entire period of the following twelve (12) months ending June thirtieth.
(c) All new annual licenses issued and based upon gross receipts shall be for the period of time remaining in the
twelve-month period beginning April first of the current year and shall expire on the thirty-first day of March
of the following year; provided, however, that all new annual licenses issued between March first of the
current year and March thirty-first of the current year shall be for the period of time in the month of March
of the current year as well as the entire period of the following twelve (12) months ending March thirty-first.
(d) All new quarterly licenses issued shall be for the time remaining in the individual quarter.
City of Santa Ana RFP No. 23-165 Page 102 of 196
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 3, 6-18-90; Ord. No. NS-2161, § 2, 6-15-92)
Editor's note(s)—Ord. No. NS-2161, § 2, adopted June 15, 1992, renumbered former § 21-73 as § 21-72 and
amended the same to read as herein set out.
Sec. 21-73. Renewal due dates.
(a) The flat rate license taxes required to be paid by the provisions of this Chapter, if paid annually, shall become
due and payable on the first day of December and shall become delinquent on the first day of January of
each year or, if paid quarterly, shall become due and payable on the first day of December, March, June and
September and shall become delinquent on the first day of January, April, July and October, respectively.
(b) The variable flat rate license taxes required to be paid by the provisions of this Chapter, if paid annually, shall
become due and payable on the first day of June and shall become delinquent on the first day of July of each
year or, if paid quarterly, shall become due and payable on the first day of June, September, December and
March and shall become delinquent on the first day of July, October, January and April, respectively.
(c) The gross receipts license taxes required to be paid by the provisions of this Chapter, if paid annually, shall
become due and payable on the first day of March and shall become delinquent on the first day of April of
each year or, if paid quarterly, shall become due and payable on the first day of March, June, September and
December and shall become delinquent on the first day of April, July, September and January, respectively.
(d) The gross receipts license tax and the variable flat rate license tax for the current year shall each be based
respectively on the filed gross receipts statement and the filed variable flat rate assessment statement. The
flat rate license tax for the current year shall be based on the schedule of flat rate taxes as specified by the
provisions of this Chapter.
(e) Any business holding a currently valid annual city business license tax receipt and desiring to pay tax
quarterly may elect upon renewal to do so by making application and paying a quarterly fee equal to twenty-
five (25) per cent of the annual rate.
(f) All daily or monthly license taxes shall be paid in advance.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2161, § 3, 6-15-92)
Editor's note(s)—Ord. No. NS-2161, § 3, adopted June 15, 1992, renumbered former § 21-72 as § 21-73 and
amended the same to read as herein set out.
Sec. 21-74. Renewal license; affidavit.
In all cases, the applicant for the renewal of a license shall submit to the collector for his or her guidance in
ascertaining the amount of the license tax to be paid by the applicant, a sworn statement, upon a form to be
provided by the collector, setting forth such information concerning the applicant's business during the preceding
year as may be required by the collector to enable him or her to ascertain the amount of the license tax to be paid
by said applicant pursuant to the provisions of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-75. Notification of flat rate tax due.
Notification of business license tax due, when said taxes are based upon flat rates, will be given by first class
United States mail no later than the fifteenth day of December, provided that failure to receive such notification
shall not exempt the licensee from all requirements under this Chapter.
City of Santa Ana RFP No. 23-165 Page 103 of 196
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2161, § 4, 6-15-92)
Sec. 21-76. Renewal statement; variable flat rate; submission and filing; notification of
variable flat rate tax renewal.
(a) Where the license is based on a variable flat rate, the applicant shall submit to the collector, for his or her
guidance in ascertaining the amount of license tax to be paid by the applicant, a written statement upon a
form to be provided by the collector, written under penalty of perjury or sworn to before a person
authorized to administer oaths, setting forth such information concerning the nature, location, intended
duration and ownership of applicant's business as well as any additional information required by the
collector to enable him or her to ascertain the amount of license tax to be paid by said applicant pursuant to
the provisions of this Chapter. The filing dates for the submission of renewal statements and the payment of
business license tax due shall be during the period from the first day of June to the thirtieth day of June of
each calendar year. In the case of a variable flat tax based upon the number of persons engaged or
employed, the statement shall be for the preceding twelve-month period beginning April first of the
preceding year and ending March thirty-first of the current year.
(b) Where a category or class of variable flat rate licenses is based on a variable flat rate applied to a fixed
amount or number which then thereafter does not vary, then, at the discretion of the collector, the variable
flat rate assessment statement may be omitted and a notification of business license tax due may be given at
the same time and in the same manner as is applied in the case of flat rate business license. Said business
license tax shall then be due and payable and shall become delinquent in the same manner as flat rate
business licenses.
(c) Notification of business license tax renewal, when such taxes are based upon variable flat rates, will be given
by first class United States mail no later than the fifteenth day of May, provided that failure to receive such
notification shall not exempt the licensee from all requirements under this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 4, 6-18-90; Ord. No. NS-2161, § 5, 6-15-92)
Sec. 21-77. Renewal statement; gross receipts; submission and filing; notification of gross
receipts tax renewal.
(a) In all cases where the license is based on gross receipts, the applicant shall submit to the collector, for his or
her guidance in ascertaining the amount of the license to be paid by the applicant, a written statement upon
a form to be provided by the collector, written under penalty of perjury or sworn to before a person
authorized to administer oaths, setting forth such information concerning the nature, location, intended
duration, and ownership of applicant's business as well as applicant's gross receipts during the preceding
calendar year as may be required by the collector to enable him or her to ascertain the amount of license tax
to be paid by said applicant pursuant to the provisions of this Chapter. The filing dates for the submission of
gross receipts statements and the payment of business license tax due shall be during the period from the
first day of March to the thirty-first day of March.
(b) Notification of business license tax renewal, when said taxes are based upon gross receipts, will be given by
first class United States mail no later than the fifteenth day of February, provided that failure to receive such
notification shall not exempt the licensee from all requirements under this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2161, § 6, 6-15-92)
City of Santa Ana RFP No. 23-165 Page 104 of 196
Sec. 21-78. Miscalculation of tax, application of deposit or credit amount; effect.
(a) Where the applicant has submitted a timely renewal statement and remitted the tax owed as required
pursuant to Sections 21-76 and 21-77, no penalty or interest shall accrue for thirty (30) days on any amount
ascertained to be deficient, where said deficiency is determined to be the result of the applicant's
miscalculation of the amount of the business license tax owed.
(b) Where a deposit or credit amount exists and the applicant has submitted a timely renewal statement, no
penalty or interest shall accrue for thirty (30) days on any amount ascertained to be deficient.
(c) Notification of deficient business license tax due will be given by first class United States mail no later than
the fifteenth day of the first month following the due dates for the submission of renewal statements as set
forth in Sections 21-76 and 21-77.
(d) Failure to receive such notifications shall not exempt the licensee from all requirements under this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2161, § 7, 6-15-92)
Sec. 21-79. Same —Failure to file or correct -Notice of assessment.
If any person fails to file any renewal statement within the prescribed time or if after demand therefor he or
she fails to file a corrected statement, the collector shall determine the amount of license tax due by means of
such information as he or she may be able to obtain. In determining the amount of license tax due for any business
for whom the gross receipts of such business is made the basis for fixing the amount of such license the collector
may in his or her discretion base such determination upon an average of the reported gross receipts of like
businesses, similarly classified. Upon making a determination, the collector shall give a notice of the amount due
by personal service or by depositing it in the United States post office in the city, postage prepaid, addressed to the
person at his or her last known address.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-80. Same —Not conclusive; audit of books.
No statement shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude
the city from collecting by appropriate action such sum as is actually due and payable hereunder. Such statement
and each of the several items therein contained shall be subject to audit and verification by the collector, his or her
revenue officers, or duly authorized employees or agents of the City, who are hereby authorized to examine, audit,
and inspect such books and records of any licensee or applicant for license, as may be necessary in their judgment
to verify or ascertain the amount of license fee due.
All persons subject to the provisions of this Chapter shall keep complete and detailed records of business
transactions, including, but not limited to, the following: rent collected, daily sales, sales taxes collected and paid
to the state, any and all city, state and federal taxes collected and remitted from cannabis sales, point of sales
(POS) system detailed daily sales data base and summary monthly sales reports, receipts, purchases, and other
expenditures, detailed general ledger, income statements, cash flow statements, balance sheets, sales journals,
cash disbursement journals and ledgers including payroll journals, third -party staffing agency statements, lease
agreements, and other reports regarding the number and types of persons employed and/or otherwise engaged in
the business, and shall retain all such records for examination by the collector, his or her revenue officers, or duly
authorized employees or agents of the City. Such records shall be maintained for the period of the current
calendar year, and for a prior period of at least three (3) complete calendar years or from the commencement of
business within the city, whichever period is least. In the event such records of any business are not maintained
City of Santa Ana RFP No. 23-165 Page 105 of 196
within the city and are not reasonably made available for examination within the city, then such business shall be
responsible for the actual travel and lodging cost in connection with the performance of said examination.
No person required to keep records under this section shall refuse to allow the collector, his or her revenue
officers, or duly authorized employees or agents of the City to examine said records at reasonable times and
places. Any person who willfully refuses to allow said examination on demand and at a reasonable time and place
as herein provided shall be deemed guilty of a misdemeanor. In addition, such willful refusal shall be cause for
suspension and/or revocation of such business' existing Santa Ana Business License as set out in section 21-86 of
this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2972 , § 11, 9-3-19)
Sec. 21-80.1. Same —Audit deficiency; application of penalty and interest; voluntary
compliance effect; abatement of penalty and interest application; exception for
business license taxes assessed on a monthly basis; audit service fees.
In the event that the collector or his or her designated agents, whether through an audit or otherwise,
determine that any person has misstated their gross receipts amount, square footage amount, or other criteria
upon which their current or prior years' business license tax has been calculated resulting in an underpayment of
the tax amount owed, the collector shall separately calculate the deficiency for each distinct license period
affected and issue a statement of tax deficiency and add delinquency penalties as applicable to the amount of the
tax deficiency in accordance with Section 21-25, subsection (a) and Section 21-83, subsection (a), together with
interest as provided under Sections 21-84 and 21-85, as applicable, until such time as the tax deficiency together
with the accrued penalties and interest, are satisfied.
In the case of business license taxes which are assessed and payable on a monthly basis, an identical
procedure shall be applied by the collector. Provided, however, that the provisions of Section 21-25 shall not
apply.
Except business license taxes which are assessed and payable on a monthly basis, where any person
voluntarily reports a tax deficiency on business license taxes which are assessed and payable on an annual basis
such person's penalty and interest assessment on said deficiency shall be abated until the combined amount of
tax, penalty and interest due is equalized to an amount equivalent to the amount of current and prior years' taxes
owing as computed or determined based upon the business license tax rates and charges in effect for the most
current tax year. In computing the abatement of accrued penalties and interest to arrive at a combined amount of
tax, penalty and interest equivalent to the amount of the current or prior years' taxes owing as computed or
determined based upon the business license tax rates in effect for the most current tax year the collector in his or
her discretion may retain a sufficient amount of accrued penalty alone, or a sufficient amount of accrued interest
alone, or any sufficient combination of accrued penalty amount and accrued interest amount necessary.
Whenever the result of any audit performed pursuant to this Chapter, excluding audits performed in
connection with any medicinal cannabis business or commercial cannabis business, determines that any licensee
has, exclusive of penalties and interest, underpaid the amount of their business license tax by five (5) per cent or
more of the total amount due, but not less than two hundred fifty dollars ($250.00), then an audit service fee in an
amount as specified by resolution of the City Council shall be applied.
In the case of audits performed pursuant to this Chapter in connection with any medicinal cannabis business
or commercial cannabis business that has, exclusive of penalties and interest, underpaid the amount of their
business license tax by five (5) per cent or more of the total amount due, but not less than five thousand dollars
($5,000.00), then such cannabis business shall be responsible for the City's actual cost of performing said audit.
(Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-2972 , § 12, 9-3-19)
City of Santa Ana RFP No. 23-165 Page 106 of 196
Sec. 21-81. Confidentiality.
It shall be unlawful for the collector or any person having administrative duty under the provisions of this
ordinance [Ord. No. NS-1922] to make known in any manner whatsoever the business affairs, operations, or
information obtained by an investigation of records and equipment of any person required to obtain a license, or
pay a license tax, or any other person visited or examined in the discharge of official duty, or the amount or source
of income, profits, losses, expenditures, or any particular thereof to be seen or examined by any person. All gross
receipts statements or estimates required by this Chapter shall be confidential and are hereby declared not to be
public records. Any unauthorized disclosure or use of such information by any officer, agent or employee of the
city shall be subject to the penalty provisions of this Code in addition to any other penalties provided by law.
Provided that nothing in this section shall be construed to prevent:
(1) The disclosure to, or the examination of records and equipment by, another city official, employee, or
agent for collection of taxes for the sole purpose of administering or enforcing any provisions of this
Chapter, or collecting taxes imposed hereunder;
(2) The disclosure of information to, or the examination of records by, federal or state officials, or the tax
officials of another city or county, if a reciprocal arrangement exists, or to a grand jury or court of law,
upon subpoena;
(3) The disclosure of information and result of examination of records of particular taxpayers, to a court of
law in a proceeding brought to determine the existence or amount of any license tax liability of the
particular taxpayers to the city;
(4) The disclosure after the filing of a written request to that effect, to the taxpayer himself or herself, or
to his or her successors, receivers, trustees, executors, administrators, assignees and guarantors, if
directly interested, of information as to the items included in the measure of any tax paid, any unpaid
tax or amounts required to be collected, interest and penalties;
(5) The disclosure of the names and business addresses of persons to whom licenses are currently issued,
and the general type or nature of their business;
(6) The disclosure by way of public meeting or otherwise of such information as may be necessary to the
city council in order to permit it to be fully advised as to the facts when a taxpayer files an appeals
claim for fee -exemption, license reinstatement, refund of forfeited fees or bonds, compromise with
regard to a claim asserted against him or her by the city for license taxes, or when acting upon any
other matter;
(7) The disclosure of general statistics regarding taxes collected or business done in the city.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-82. Payments, statements, etc., made by mail; effect.
When the last day of the month in which the business tax is due falls on a Saturday, Sunday, or state or
national holiday, payment of the business license tax may be made without penalty on the first working day of the
succeeding month. For the purpose of this article, postmarks shall be accepted as the date of payment made,
provided the transmitting envelope contains a post office cancellation indicating not later than the date due, or in
the case of a weekend or holiday, not later than the first following working day.
Whenever any other payment, statement, application, report or other communication received by the
collector is received after the time prescribed by this Chapter for the receipt thereof, and whenever the collector is
furnished sufficient proof that the payment, statement, application, report, request or other communication was
City of Santa Ana RFP No. 23-165 Page 107 of 196
in fact deposited in the United States mail prior to the time prescribed for the receipt thereof, the tax collector
shall regard such payment, statement, report, request or other communication as having been timely received.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-83. Penalties for past due delinquency; application —Minor errors in payments;
acceptance.
(a) For failure to fully pay any business license renewal tax amount when due, the collector shall add the
following penalties:
(1) Ten dollars ($10.00) or ten (10) per cent of the unpaid balance of said amount, whichever is greater, on
the past due date thereof,
(2) Fifteen dollars ($15.00) or fifteen (15) per cent of the unpaid balance of said amount, whichever is
greater, on the first day of the second month after the due date thereof;
(3) Twenty-five dollars ($25.00) or twenty-five (25) per cent of the unpaid balance of said amount,
whichever is greater, on the first day of the third month after the due date thereof; and
(4) Fifty dollars ($50.00) or fifty (50) per cent of the unpaid balance of said amount, whichever is greater,
on the first day of the fourth month after the due date thereof; provided that the maximum amount
shall not exceed an amount equal to one hundred (100) per cent of the amount of the business license
tax due. Notification of delinquent business license taxes will be given by first class United States mail
no later than the fifteenth day of each month, until the maximum penalty is imposed; provided that
failure to receive such notification shall not exempt the licensee from all requirements under this
Chapter.
(b) In the event a minor discrepancy exists between the amount paid and the amount due under this Chapter,
arising from a miscalculation on the part of an applicant or licensee, and resulting in an underpayment of the
business license tax in an amount not to exceed such amount as is specified by resolution of the city council,
the collector may accept and record the underpayment as payment in full without notification to the
taxpayer.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13)
Sec. 21-83.1. Partial payment; not construed as meeting requirements of chapter —
Installment payments and/or deferral; permitted —Written agreement to satisfy
indebtedness; effect.
(a) Except as provided in Section 21-83, subsection (b), acceptance of any partial payment of business license tax
or penalty or interest owing that is less than the amount required under the terms of this Chapter shall not
be construed as meeting the requirements of this Chapter. No license or sticker, decal, tag, plate or symbol
shall be issued, nor shall one (1) which has been suspended or revoked be reinstated or reissued, to any
person who, at the time of applying therefor, is indebted to the city for any delinquent business tax, unless
such person, enters into an acceptable binding written agreement with the city to satisfy said delinquency
within one (1) year. With the consent of the collector such agreements may be deferred or extended for a
period exceeding one (1) year.
(b) The execution of any agreement to satisfy delinquent business license taxes by means of installment
payments and/or deferral shall not prevent the accrual of penalties and interest as applicable on the unpaid
balance as provided under the terms of this Chapter. However, such additional penalties as may accrue and
City of Santa Ana RFP No. 23-165 Page 108 of 196
the interest on such penalties shall not be applied after the execution of such agreement and the payment of
the first installment and during such time as such person shall not be in breach of the agreement. Upon the
timely payment of the final installment of the agreement such additional penalties and the interest thereon
as may have accrued shall be waived. In any agreement so entered into, such person shall acknowledge the
obligation owed the city and agree that, in the event of failure to make timely payment of any installment,
the whole amount unpaid, principal together with accrued penalties and interest thereon, shall become
immediately due and payable. In the event such person fails within a period of thirty (30) days thereafter to
render payment in full, such person's current business license may be revoked by the collector. In the event
legal action is brought by the city to enforce collection of any amount included in the agreement, such
person shall pay all costs of suit incurred by the city or its assignee, including attorney fees. The execution of
such an agreement shall render any subsequent appeal null and void and shall constitute a waiver against
future action.
(Ord. No. NS-2841, § 6, 2-4-13)
Sec. 21-84. Same —Added to tax.
Any penalties assessed hereunder, exclusive of interest, upon attaining a combined amount equal to one
hundred (100) per cent of the amount of the business license tax due shall become merged with the tax payable
hereunder and shall be considered as a part thereof for all purposes.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-85. Same —Interest.
In addition to the past due delinquency penalties imposed in Section 21-83, any business that fails to remit
the tax due shall pay interest at the rate of one (1) per cent per month, or portion thereof, exclusive of penalties,
on the amount of the unpaid tax, from the date on which remittance first became delinquent until paid -in -full or
otherwise satisfied. Provided however, that pursuant to Section 21-84 penalties upon attaining a combined
amount equal to one hundred (100) per cent of the amount of the business license tax due are merged with the
tax payable hereunder and any additional interest charged from such date on shall be charged the combined
amount delinquent until paid.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13)
Sec. 21-86. Same —Suspension and revocation of business license.
The collector shall suspend and/or revoke any business license issued or granted pursuant to this Chapter
only upon those grounds set forth in Sections 21-45, 21-50, 21-55, 21-58, 21-59, 21-60, 21-80, 21-136 or upon
conditions set forth in any written agreement executed pursuant to Section 21-83.
Provided further, that unless revocation is made upon conditions set forth in a written agreement executed
pursuant to Section 21-83 or upon licensee's failure to comply with the requirements of Section 21-136, no
licensee's business license shall be suspended and/or revoked for failure to pay any annual business license tax as
set forth in this Chapter, or any monthly business license tax as set forth in Article XII or Article XIII of this Chapter,
or any other amount due pursuant to this Chapter until the penalties accruing for such failure to pay, exclusive of
interest, have attained the maximum applicable amount permissible under the terms of this Chapter. Whereupon,
the collector shall give a notice of suspension, which notice shall specify the grounds for suspension, and which
notice shall be given by personal service or by depositing it in the United States post office in the city, postage
prepaid, addressed to the licensee at the address listed on the application of the licensee where he or she
consented to receive mail concerning his or her license, to obtain a license or to pay any license tax due or the
City of Santa Ana RFP No. 23-165 Page 109 of 196
address listed on the most recent business license renewal affidavit or business license amendment statement;
and/or conspicuously posting said notice upon the premises of the business. Service of notice shall be deemed
completed upon the date of personal service of said notice, or the date of mailing of said notice, or the date of
actual posting of said notice on the premises of the licensee whichever occurs first.
In the event said licensee fails, within a period of thirty (30) days' notice, to pay the business license tax due
or any other amount due pursuant to this Chapter, or to request a hearing the procedure for which shall be as
provided in Section 21-41, then and in that event the collector shall give a notice of revocation. The licensee shall
be given at least ten (10) days' notice, which notice shall specify the grounds for revocation, and which notice shall
be given pursuant to the hereinabove set forth procedure for giving notice.
In the event said licensee fails within the allotted ten (10) day period to request a hearing to show cause why
his or her business license should not be revoked, then and in that event the collector shall revoke said person's
license and give notice thereof to said person pursuant to the hereinabove set forth procedure for giving notice.
In the event said licensee fails to file within ten (10) days thereafter, an appeal pursuant to Chapter 3 of this
Code, then the collector's action in revoking said person's business license shall be conclusive as to all matters
involved, and the transacting and carrying on by any person of any business pursuant to said license shall
thereafter be deemed a misdemeanor.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2972 , § 13, 9-3-19)
Sec. 21-87. Refunds authorized.
Any business tax, or penalties or interest thereon, or portion thereof, may be refunded, if they were:
(a) Paid more than once;
(b) Erroneously or illegally collected;
(c) Paid in excess of the correct amount due;
(d) Issued for a business which subsequently, does not operate in the city, due to applicant's inability to
obtain additional permits required under any provision of this Code. In such case, the applicant shall be
entitled to a refund of the business tax paid. Where applicant cancels his license prior to any inspection
or investigation taking place, then in that event, applicant shall be entitled to a refund of all tax,
inspection or investigation fees paid, less the fifteen dollar ($15.00) application processing charge,
without further deduction to cover the administrative cost therefor;
(e) Issued for a business which subsequently becomes prohibited or illegal under any law of the state. In
such case, the amount refunded shall be prorated on the basis of the proportion which the number of
months remaining in the period for which the business tax was paid bears to the number of months in
the whole period.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-88. Application for refund.
No refund of monies howsoever paid or collected shall be allowed in whole or in part unless an application
therefor is filed with the collector within a period of one (1) year from the expiration of the license period for
which a refund is sought, and all such claims for refund must be filed with the collector on forms furnished by him
or her in the manner prescribed by him or her. Such application may be made only by the person who made the
payment, his or her guardian, executor, administrator or heir. Refunds shall not be made to an assignee of the
applicant. Upon the filing of such a claim, and when he or she determines that a refund is warranted, the collector
City of Santa Ana RFP No. 23-165 Page 110 of 196
shall refund the amount warranted, less an amount equivalent to the application processing charge paid, which
shall be retained to cover the administrative cost of the refund. Provided, however, that in the case of a refund
made pursuant to Section 21-87(b), and where applicable, subsection (d), no deduction shall be made on account
of the administrative cost therefor. The failure to file such application within the time prescribed herein shall bar
any future right of recovery.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 6, 6-21-22)
Sec. 21-89. Same —No refund in instance of other delinquency.
Where the collector has determined pursuant to Section 21-88 that a refund is due upon a particular
business license, but where the applicant or licensee is at the same time determined to be delinquent or otherwise
liable for a business license tax upon a separate business license, or for a separate unlicensed business; then in
that event, the collector shall apply said refund amount to the balance owing and delinquent for said business
license or for said unlicensed business. The collector shall then refund any amount remaining.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-90. Same —Fraud bar to refund.
No refund shall be made where the business license was issued under a misrepresentation of fact by the
applicant and or such applicant actually engaged in the conduct of the business for which the license was granted
prior to the date stated in applicant's original application.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-91. Same —Proof of payment prerequisite to refund.
In all cases proof of payment shall be a prerequisite to any refund.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-92. Same —No refund upon termination of business.
The business license taxes under the terms of this Chapter are not refundable upon termination of a business
or for any unused portion or term of a license period.
(Ord. No. NS-1922, § 1, 7-20-87)
ARTICLE Vlll. ENFORCEMENT
Sec. 21-93. Enforcement; duty to examine all places of business.
It shall be the duty of the collector or his or her designated agents to enforce all of the provisions of this
Chapter and the chief of police, the chief building official, the chief fire official, and the city attorney shall render
such assistance in the enforcement thereof as may from time to time be required by the collector. The collector in
the exercise of the duties imposed hereunder and acting through his or her deputies or duly authorized assistants,
shall examine or cause to be examined all places of business in the city to assure compliance with the provisions of
this Chapter.
City of Santa Ana RFP No. 23-165 Page 111 of 196
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-93.1. Enforcement; inspection/collection service fee —Application.
(a) Whenever any person charged with the duty of enforcing this Chapter shall have cause to re-examine, re-
inspect, re -investigate, or re -visit a place of business for purposes of enforcing any portion of the business
license tax code or to collect any sum owed pursuant to this Chapter, a separate inspection/ collection
service fee shall be applicable in the amount as specified by resolution of the city council.
(b) In the case of a re-examination, re -inspection, re -investigation, or re -visitation of any local place of business
pursuant to a violation of this Chapter or noncompliance with the business license tax code, a reasonable
period of time shall be given to the responsible party to correct the violation or to come into satisfactory
compliance with the requirements of this Chapter. If the violation or noncompliance necessitating the re-
examination, re -inspection, re -investigation, or re -visitation of any local place of business is remedied prior
to the expiration of the correction period no inspection/collection service fee shall be imposed.
(c) Whenever the collection of the unpaid balance of any business license tax or other amount subject to the
enforcement and collection requirements of this Chapter is sought by transfer to a collection agency, or any
other method of assignment not inconsistent with the provisions of this Chapter, a transfer service fee in the
amount as specified by resolution of the city council shall also apply.
(d) The collector and his or her authorized agents charged with the duty of enforcing this Chapter, may waive
the application of the inspection/collection service fee or any other service fee elsewhere established
pursuant to the provisions of this Chapter, in connection with any satisfactory agreement entered into in
accordance with Section 21-83.1, or any compromise of claim, or any agreement or settlement entered into
pursuant to a court approved stipulation, or for other good cause shown.
(Ord. No. NS-2841, § 6, 2-4-13)
Sec. 21-94. Enforcement; right of entry.
The collector and all of his or her duly authorized assistants and any police officer shall have the power and
authority to enter during business hours, free of any charge, and at such other times as may be reasonable
following due process of law, any place of business required to be licensed herein and demand a display of the
required business license tax receipt. Failure to exhibit said license receipt upon demand therefor shall be
punishable as specified hereinafter:
(a) Any person not having such license tax receipt theretofore issued on the display in a conspicuous place
on the premises pursuant to Section 21-70 shall be deemed guilty of a criminal infraction.
(b) Any licensee whose license is delinquent and unissued and/or any licensee who has been placed on
notice of a suspended license by personal service, or served notice through the United States mail, or
by a notice conspicuously posted upon the premises, and who has not applied for, or who is not
undergoing the process of a hearing or appeal pursuant to Sections 21-41 or 21-86 of this Chapter or
Chapter 3 of this Code shall be deemed guilty of a criminal infraction.
(c) Any person having been previously placed on notice of violation by personal service, or served notice
through the United States mail, or by a notice conspicuously posted upon the premises, and who has
not paid said business license tax or applied for exemption therefrom and who has not applied for, or
who is not undergoing the process of a hearing or appeal pursuant to Sections 21-41 or 21-86 of this
Chapter or Chapter 3 of this Code shall be deemed guilty of a criminal infraction.
City of Santa Ana RFP No. 23-165 Page 112 of 196
(d) Any person having been previously placed on notice of revocation by personal service, or served notice
through the United States mail, or by a notice conspicuously posted upon the premises, and who has
not applied for, or who is not undergoing the process of a hearing or appeal pursuant to Section 21-41
or 21-86 of this Chapter or Chapter 3 of this Code shall be deemed guilty of a misdemeanor.
(e) Any person having such license tax receipt theretofore issued in his or her possession or under his or
her control, who willfully fails to exhibit the same on demand as provided for herein, shall be guilty of a
misdemeanor.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-95. Enforcement; duty to enforce civil and penal penalties against delinquent
licensees.
It shall be the duty of the collector to maintain a list of all delinquent business taxes that are payable under
this Chapter, and upon the same having attained the maximum penalty permitted under this Chapter of one
hundred (100) per cent of the license tax due and upon the same coming to his or her knowledge, he or she shall
give notice to the licensee of suspension and thereafter act to collect the same in his or her discretion, by suit or
otherwise.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-96. Enforcement; duty to serve notice of violation; duty to file complaint or issue
citation upon continued violation.
It shall be the duty of the collector to cause a notice of violation to be served on any person found to be in
violation of this Chapter and thereafter to cause a complaint to be filed and/or a citation issued to any person
found to be in continuing violation of any provisions of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87)
ARTICLE IX. MISCELLANEOUS
Sec. 21-97. Swap meets.
Swap meet exhibitors and swap meet operators shall pay business license tax according to the provisions of
this Section.
(a) Definitions. As used in this Section, the following words, terms, or phrases shall have the meaning hereinafter
set forth:
(1) "Swap meet" shall mean any event where the place or location at which the event is held has been
advertised by any means whatsoever as a place or location to which members of the public at large,
during a specified period of time, may bring identifiable, tangible property and exhibit the same for
sale or exchange.
(2) "Swap meet exhibitor" shall mean any person exhibiting, displaying, selling, exchanging, offering for
sale or exchange any property at a swap meet.
(3) "Swap meet operator" shall mean any person or organization conducting or operating the business of a
swap meet on any premises in the city excluding, however, swap meet exhibitors.
City of Santa Ana RFP No. 23-165 Page 113 of 196
(b) Fees.
(1) Every swap meet operator shall pay an annual business license fee according to Section 21-119(1) of
this Chapter.
(2) Each swap meet exhibitor participating in a swap meet shall pay a fee in the amount specified in
Section 21-120s(7) per swap meet stall per day. Where two (2) or more swap meet exhibitors share a
single stall, each such exhibitor shall pay a separate daily stall fee. Such fee shall constitute a debt
owed by the swap meet exhibitor to the city and shall be extinguished only by payment to the swap
meet operator. The swap meet exhibitor shall pay the fee to the swap meet operator at the time and
on each day the swap meet exhibitor participates in the swap meet. Any unpaid fee shall be paid upon
the termination of the swap meet exhibitor's participation in the specific swap meet. Each swap meet
operator shall collect the fee imposed by the provisions of this Section to the same extent and at the
same time as any other fees are collected from every swap meet exhibitor. The amount of the fee shall
be separately stated from any other monies collected by the swap meet operator. The fee shall be in
addition to any other fee required by the city.
(3) On or before the tenth day following each swap meet, each swap meet operator shall file a return with
the collector showing the total amount of fees collected under this Section and such other information
as may be required by the collector. At the time the return is filed, the swap meet operator shall remit
the full amount of the fees collected to the collector. Returns and payments shall be due immediately
upon cessation of business by the swap meet operator for any reason.
(4) Every swap meet operator shall hold all fees collected under this Section in trust for the account of the
city until payment thereof is made to the collector. Any swap meet operator who fails to remit the fees
within the time specified shall pay a penalty of ten (10) per cent for each month said payment is
overdue.
(c) Records. Each swap meet operator shall keep full and accurate records of gross receipts and stall rentals to
vendors in connection with the operation of the swap meet. The city, by and through its authorized officers
shall have the right to examine and audit such records, including records of any bank accounts, at any
reasonable time, and swap meet operators shall cooperate fully with inspection of them. Such records shall
include, but are not limited to, the total amount of gross receipts from each day, as well as whatever records
are necessary in order to provide the city any required information pursuant to subsection (b)(3) of this
Section.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 7, 6-21-22)
Sec. 21-98. Coin -operated machines or devices; license tax imposed; amount of tax;
applicability of tax where devices are operated as secondary business.
(a) For every person whose business is limited exclusively to renting, leasing, maintaining or letting the use of
any coin -operated machine or device, or otherwise engaging in vending operations, or in operating any coin -
operated machine or device at any location or fixed place of business owned or otherwise under the control
of another, the annual license tax on business done exclusively within the city, for every device so rented,
leased, let, maintained or operated, shall be the amount specified in Section 21-120v(1) per each ten cent
($0.10) device and over or the amount specified in Section 21-120v(2)(a) for the first five cent ($0.05) device
and under and thereafter the amount specified in Section 21-120v(2)(b) for each such additional device five
cents ($0.05) and under.
(b) Any person whose primary business is not limited exclusively to coin -operated machines or devices, and for
which he or she pays a license tax based on gross receipts, but who owns, leases, or rents for operation at his
or her fixed place of business any coin -operated machine or device or who receives rent for the operation of
City of Santa Ana RFP No. 23-165 Page 114 of 196
any coin -operated machine or device thereat, or who otherwise participates in the gross receipts derived
from the operation of such machines thereat; such person may elect to combine the gross receipts of both
activities and pay a license tax based upon the total receipts thereof which will be assessed at the same rate
as is applied to his or her primary business according to Section 21-119 of this Chapter. Such election shall be
made in writing at the time of applicant's original application for a business license or may be made once
annually thereafter at the time of licensee's application for a renewal license.
(c) Where any licensee engages in the operation of any coin -operated machine or device at his or her fixed place
of business subsequent to the commencement and licensing of licensee's primary business, the initial license
tax due shall be identical to the tax established in subsection (a) above. However, upon the expiration of the
initial licensing period, licensee may elect to pay the tax as provided pursuant to subsection (b) above.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 7, 6-21-22)
Sec. 21-99. Same —Applicability of tax where coin -operated machines or devices are operated
as primary business.
For every person whose primary business is limited exclusively to the operation of coin -operated machines
or devices upon premises owned or controlled by such person, the annual license tax on business done shall be
based upon the total gross receipts thereof according to Section 21-119(1) of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-100. Additional required information.
At the time the license required under Section 21-98 is applied for, and thereafter annually at the time of the
renewal of such license, or at such other time as the collector may set, the applicant or licensee shall provide to
the collector a list giving the kind or character of machine or device, local business name and street address, and
number of machines or devices at each proposed or existing location.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13)
Sec. 21-101. Sealing of nonidentified or unlicensed machines.
The collector, as chief revenue officer, and each and every duly authorized revenue officer of the city shall
seal the coin openings or slots in a manner which will render inoperative the coin devices on any machine or
device not otherwise exempted by the provisions of the chapter which is found available to the public for
operation and which does not have stamped or affixed thereon the required identification or for which the proper
license tax has not been paid in full; in lieu thereof, he or she may seize and hold any such machine for the
payment of such license tax pursuant to Section 21-102. A service charge in the amount specified in Section 21-
120s(1) shall be paid in advance to the collector, or his or her authorized agent by the owner or operator of any
such machine or device so sealed for the removal of such seals. No person shall operate any machine or device so
sealed without first submitting evidence to the collector or his or her duly authorized agent that payment of the
required license tax and service charge prescribed in this Section has been made and until the required
identification has been stamped upon or affixed to the machine or device and the collector or his or her agent has
removed such seals. It is unlawful for any person other than the collector or his or her duly authorized agents to
break any such seals. Any person so doing shall be deemed guilty of a misdemeanor. Upon receipt of evidence of
payment in full of the tax and service charge and, when applicable, evidence of other required compliance by the
owner or operator of any machine or device so sealed, the collector or his or her duly authorized agent shall break
and remove such seals. In the event of seizure, any such machines shall be disposed of upon nonpayment of such
City of Santa Ana RFP No. 23-165 Page 115 of 196
tax as provided by the laws relative thereto, pursuant to Section 21-102. Such machines may be reclaimed by the
owners, prior to disposal, upon payment of taxes and all costs involved in the seizure, storage and handling
thereof.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 5, 6-21-22)
Sec. 21-102. Enforcement; seizure of devices.
In the event that any person engages in, conducts, transacts and carries on or manages the business of
maintaining any coin -operated machines or devices and operates any such devices upon premises not belonging
to, nor under the control of said person without obtaining a license therefor, or upon revocation of the same the
collector shall seize such coin -operated machines or devices and hold them as security for the payment of the
license fee or any other amount due and owing pursuant to this Chapter and shall not surrender same until a
license is obtained or renewed. In the event the person owning or having control of the device fails, within a period
of thirty (30) days after notice to said licensee served to the address listed on the application of the licensee where
he or she consented to receive mail concerning his coin -operated machines or devices, to pay any license tax and
any other amount due pursuant to this Chapter, then and in that event the device shall be disposed of as
hereinafter provided in this section. Where the person owning or having control of the device has failed to obtain a
license for said device prior to the seizure of said same then notice shall be served through United States mail to
the person owning or having control of the device to the address affixed to the device listing the owner's name and
address. Where no address is so affixed a notice shall be conspicuously posted upon the premises where the
device is being operated. In the event said person fails, within a period of thirty (30) days after the serving or
posting of said notice, to obtain a business license, then in that event the device shall be disposed of as hereinafter
provided in this section.
The device or devices or so many thereof shall be sold to satisfy the amount of license fee or any other
amount due to the city pursuant to this Chapter and any device or devices not sold shall be surrendered to the
owner thereof; provided further that in the event the device or devices are sold for a sum less than the amount of
the license fee or any other amount due and owing to the city pursuant to this Chapter, the owner of the devices
shall, nevertheless, remain liable for the balance of such license fees due and payable.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-103. Owner of business responsible.
The owner of the business wherein the machine or device indicated herein is located shall be held
responsible for the full amount of the tax if the owner of the machines or devices has not paid the tax when due
and payable.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-104. Decal, metal -cal or labels to be attached to machine; information to be shown.
(a) No person shall maintain any coin -operated machine or device within the city without having posted
thereon, in a conspicuous place, a decal or label for identification purposes, on which is written the name,
address and telephone number, if any, of the owner or operator thereof.
(b) No person shall maintain any coin -operated machine or device within the city without having posted
thereon, in a conspicuous place, a decal, metal -cal or label, which shall be issued and supplied by the
collector upon payment of the required tax, which decal, metal -cal or label shall indicate that the license tax
has been paid for the current period.
City of Santa Ana RFP No. 23-165 Page 116 of 196
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-104.1. Exemptions.
No business license tax or identification shall be required for the maintenance or operation of:
(1) Any U.S. postage stamp machine;
(2) Any change machine;
(3) Any machine dispensing sanitary or hygienic articles, or drinking cups, towels or medicine, which
machine or device is entirely owned by the owner or operator of the premises where installed and is
maintained solely for the convenience of the employees, visitors or customers;
(4) Any machine or device dispensing newspapers or magazines; provided, that the distributor owning and
or the independently contracted agent servicing each such machine or device has paid a business tax
for the current license year pursuant to Article X of this Chapter. In the event a business license tax has
not been paid, the collector or his or her duly authorized agent shall take action pursuant to Sections
21-101 and 21-102 by sealing the coin openings or seizing any such machines or devices that are found
available to the public for operation.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-105. Discontinuing maintenance of machines or devices; substitution of other
machines or devices.
In the event any person discontinues maintaining any machine or device duly licensed under this Chapter
during a period when such machine or device is licensed under this Chapter, such licensee may substitute another
like machine or device in its place, and may maintain such substituted machine or device without payment of an
additional license tax for the unexpired period of the license carried on such discontinued machine or device;
provided, that such person shall surrender the city -provided identifying decal, metal -cal or label, whichever the
case may be, to the collector or his or her duly authorized agent and obtain a new identifying decal, metal -cal or
label for such unexpired period for such substituted machine or device.
(Ord. No. NS-1922, § 1, 7-20,87)
Sec. 21-106. Applicability of chapter; operation of illegal machines or devices.
Nothing contained in this Chapter nor any action of the collector or any duly authorized agent in issuing a
license shall in any manner be considered as expressing any opinion or approval as to the legality of any machine
or device and shall be no authority to operate any machines or devices as set forth in this article which may be
illegal or illegally operated under the laws of the state.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-107. Peddlers, solicitors and pushcarts.
(a) Any person, whether a resident of the city or not, traveling by foot, automotive vehicle or any other type
conveyance from place to place or from street to street carrying, conveying or transporting goods, wares,
merchandise, and offering and exposing the same for sale, or making sales and delivering articles to the
purchasers or offering to sell or take orders for goods, wares, or merchandise or other things of value for
City of Santa Ana RFP No. 23-165 Page 117 of 196
future delivery or for services to be performed in the future, or canvassing any opinions, preferences,
endorsements or other information from persons within the city, not otherwise licensed under the
provisions of this Chapter or not having a regularly established place of business within the city, as said
established place of business within the city shall be defined in this Section, shall pay a license fee as follows:
For Peddlers:
(1) The amount specified in Section 21-120p(2) per year, or the amount specified in Section 21-120p(2) per
day, unless the person, persons, firms or corporations for whom such persons peddling and/or
soliciting have a principal's, peddler's or solicitor's license as hereinafter provided pursuant to Section
21-108.
(2) The amount specified in Section 21-120p(3) per year, if the person, persons, firms or corporations for
whom such person is peddling and/or soliciting have a principal's, peddler's or solicitor's license.
For Solicitors:
(3) The amount specified in Section 21-120s(4) per year, unless the person, persons, firms or corporations
for whom such persons are soliciting have a principal's solicitor's license as hereinafter provided
pursuant to Section 21-108.
(4) The amount specified in Section 21-120s(5) per year, if the person, persons, firms or corporations for
whom such person is soliciting have a principal's solicitor's license.
(b) The phrase "having a regularly established place of business within the city" as used hereinabove and
hereinafter below shall be defined as any individual having a fixed place of business, within the city for a
period of not less than ninety (90) days and having a state board of equalization permit number applicable to
the aforementioned place of business so established in the city.
(c) Every person operating a pushcart vending business within the city shall pay a license fee in the amount
specified in Section 21-120p(6) per year for each such pushcart operated within the city.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 5, 6-18-90; Ord. No. NS-2133, § 3, 7-15-91; Ord. No. NS-3028 ,
§ 7, 6-21-22)
Sec. 21-108. Principal's, peddler's or solicitor's license.
Any person, firm or corporation, either employing one or more individuals, or contracting with one or more
independent contractors to have such individuals solicit the retail sale of any goods, wares, merchandise, services
or other things of value for future delivery or for services to be performed in the future, or to peddle or sell goods,
wares and merchandise or to solicit any opinions, preferences, endorsements or other information from persons
within the city, not otherwise licensed under the provisions of this Chapter or not having a regularly established
place of business within the city, may obtain a principal's, peddler's or solicitor's license and pay a license fee as
follows:
For a Principal Peddler's License, the amount specified in Section 21-120p(4) annually, plus an additional
amount as specified in Section 21-120p(4) per employee for each employee engaged in peddling within the city,
including independent contractors required to be separately licensed pursuant to Section 21-107(a).
For a Principal Solicitor's License, the amount specified in Section 21-120s(6) annually, plus an additional
amount as specified in Section 21-120s(6) per employee for each employee engaged in peddling within the City,
including independent contractors required to be separately licensed pursuant to Section 21-107(a).
The collector shall not issue such license until the applicant files with the collector a list of all peddlers and/or
solicitors employed by the applicant or with whom the applicant has contracted and a signed agreement that the
City of Santa Ana RFP No. 23-165 Page 118 of 196
applicant, within five (S) days thereafter, will notify the collector in writing of every change in personnel of those
soliciting and/or peddling for him.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 6, 6-18-90; Ord. No. NS-3028 , § 7, 6-21-22)
Sec. 21-109. Same; requirements for license.
No license to peddle or solicit shall be issued to any person unless and until such person furnishes the
collector with his state board of equalization permit number and agrees to report separately in his sales tax return
to the state the amount of receipts from sales in the city and agrees to pay the required sales or use tax on such
receipts. This section shall apply only to those businesses subject to payment of a sales or use tax under the laws of
the State of California.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-110. Radio broadcasting, television broadcasting; soliciting advertising therefor.
Any person engaged in transacting and carrying on activities related to the generation of electromagnetic
waves within the city for the purpose of commercial broadcasting by radio transmission or television transmission
shall pay an annual business license fee according to Section 21-119(1) of this Chapter.
Any person engaged in transacting and carrying on activities related to the solicitation of advertising within
the city for radio or television transmission in intrastate commercial broadcasting and not otherwise licensed
under the provisions of this Chapter and not having a regularly established place of business within the city
pursuant to Section 21-107 shall pay an annual business license fee according to Section 21-108 of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-111.Off-premises commercial advertising signs; erecting of, maintaining of, selling of
advertising space therefor.
Any person engaged in transacting and carrying on the business of erecting, maintaining and selling of
advertising space on off -premises commercial advertising signs shall pay a license tax therefor per sign face located
in the city. For sign faces with gross dimensions equal to or less than three hundred (300) square feet said tax shall
be at the rate as specified in Section 21-120o(1) per sign face. For sign faces with gross dimensions in excess of
three hundred (300) square feet said tax shall be at the rate as specified in Section 21-120o(2) per sign face.
(Ord. No. NS-1926, § 1, 10-19-87; Ord. No. NS-3028 , § 7, 6-21-22)
Sec. 21-112. Trucking and hauling; transportation of property; delivering or carrying of goods,
wares or merchandise; occasional and incidental activity; exemptions and
exceptions.
(a) Transportation of property. Every person whose business is that of operator of any vehicle used for the
transportation of property for hire or compensation, and who in the course of that business uses the public
streets and highways within the city to receive or discharge, pick up or deliver property within the city, shall
pay a business tax as specified in Section 21-120t(2) per year for each such vehicle.
(b) Delivering or carrying of goods, wares or merchandise. Every person who uses any vehicle over the public
streets and highways of the city to receive or discharge property, or for delivering or carrying goods, wares or
City of Santa Ana RFP No. 23-165 Page 119 of 196
merchandise sold, let or handled by him in the course of this business within the city, and who is not
otherwise specifically taxed by other provisions of this Chapter, shall pay a business tax as specified in
Section 21-120t(2) per year for each such vehicle.
(c) Occasional and incidental activity. The provisions of this Section shall not apply to persons operating such
vehicles within the city on an occasional and incidental basis. For the purpose of this Section, "occasional
[and] incidental" is defined to be the doing or performing of not more than three (3) incidents or acts as
specified in this Section in any one-year period.
(d) Exemption and exceptions. The business tax imposed under the provisions of this Section shall not apply to
any person who is subject to tax under the Motor Carriers of Property Permit Fee Act, commencing with
Section 7231 of the California Revenue and Taxation Code; nor shall the provisions of this Section apply to
the operation of any vehicle operated exclusively in interstate commerce.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 7, 6-21-22)
Sec. 21-113. Telephone services.
Every person engaged in the business of providing telephone services shall pay an annual business fee
according to section 21-119(2) of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3031, § 4, 11-8-22)
Sec. 21-114. Professional services.
Every person engaged in the business of providing professional services shall be taxed upon the basis of the
number of persons engaged or employed in such business, in accordance with the following schedule:
(a) Each location in which professional services are rendered, whether by one (1) or more practicing
principals or by one (1) or more professional independent contractors rendering professional services
pursuant to a contract of employment, or whether by one (1) or more salaried professional employees
engaged in rendering professional services —the amount as specified in Section 21-120p(5)(a) ;
(b) Each practicing professional principal, in excess of one (1), engaged in rendering professional services,
whether as owner or as partner or officer or as professional shareholder —the amount as specified in
Section 21-120p(5)(b);
(c) Each additional person engaged or employed, either as professional independent contractor rendering
professional services pursuant to a contract of employment, or whether as salaried professional
employee engaged in rendering professional services —the amount as specified in Section 21-
120p(5)(c);
(d) Each additional person engaged or employed otherwise —the amount as specified in Section 21-
120p(5)(d).
For the purpose of this Section, the phrase "each practicing professional principal" shall be deemed and is
declared to mean the maximum number of persons engaged in rendering professional services (other than salaried
employees or independent contractors engaging their services pursuant to a contract of employment and not
otherwise sharing in the profits of the business) and shall be computed based upon the maximum number of
practicing principals engaged in rendering professional services for any one -day period during any part of the
preceding business license period.
For the purpose of this Section, the phrase "each additional person engaged or employed" shall be deemed
and is declared to mean the average number of persons, whether licensed practitioners employed or otherwise
City of Santa Ana RFP No. 23-165 Page 120 of 196
engaged in rendering professional services, and not otherwise sharing in the profits of the business, or whether
any other category of person, directly or indirectly paid for their service and not otherwise sharing in the profits of
the business.
For the purpose of determining the average number of persons engaged or employed, the person subject to
the tax shall ascertain separately the total number of hours of service performed by licensed practitioners engaged
or employed during the preceding year, including paid leave, and the total number of hours of service performed
by all other persons engaged or employed during the preceding year, including paid leave, in each case dividing the
total number of hours of service by the fulltime equivalent (two thousand eighty (2,080) hours). In computing the
average number of persons engaged or employed, fractions shall be rounded to the nearest whole number with
one-half (0.5) or greater being rounded up and less than one-half (0.5) being rounded down.
In the case of an application for an original license, applicant shall state both the maximum number of
practicing professionals engaged or intended to be engaged in rendering professional services and the average
number of persons engaged or employed or intended to be engaged or employed to assist in the conduct of
applicant's business. Thereafter, the license tax provided for herein shall be based solely upon the hereinabove set
forth method of computation.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2131, § 2, 7-15-91; Ord. No. NS-3028 , § 7, 6-21-22)
Sec. 21-115. Same —Keeping of records; applicability of audit.
Section 21-80 shall apply to all statements provided to be filed under Section 21-114; provided however, that
the inspection of books and records shall be limited specifically to books and records reflecting the employees and
other persons engaged in the business activity.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13)
ARTICLE X. RATES AND SCHEDULES
Sec. 21-116. Applicability of article.
The tax for any license required by any section of this Chapter shall be set forth in this article for the
particular business involved. The tax and the duration of the license shall be annual, quarterly, monthly, and daily
as indicated in this article. The letter "A" following the tax shall indicate an annual rate; the letter "Q" shall indicate
a quarterly rate; the letter "M" shall indicate a monthly rate; the letter "Y shall indicate a daily rate. No letter
following the tax shall indicate a variable duration as determined in connection with other applicable provisions set
forth elsewhere in the Santa Ana Municipal Code. In place of a tax, the letter "C" shall denote a specified charge.
The applicability of the charge shall be determined by the Business License Tax Code provision establishing it. In
the place of either a tax or charge, the letter "T" shall denote a specified qualifying threshold amount. The
applicability of the qualifying threshold amount shall be determined by the Business License Tax Code provision
establishing it.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)
Sec. 21-117. New business license tax.
(a) A license tax for a new business shall be paid in advance or a deposit taken in lieu thereof prior to any new
business activity being undertaken.
City of Santa Ana RFP No. 23-165 Page 121 of 196
(b) All new businesses for whom flat fees are made the basis for fixing the amount of such license shall pay in
advance an amount equal to one -quarter (%) of the annual fee therefor for each quarter and fraction of a
quarter remaining during the period for which the new license is issued, except as otherwise specified
hereinafter.
(c) All new businesses for whom the gross receipts of such business are made the basis for fixing the amount of
such license shall pay their annual fee based on actual gross receipts received during the period for which the
new license is issued. For any business which is commenced subsequent to April first, the renewal fee shall
be based upon an annualization of the actual gross receipts received during the period for which the new
license is issued. In the event an applicant fails to submit a report of the actual gross receipts received
pursuant to Section 21-77, the fee shall be based on the collector's estimate of the actual gross receipts
received pursuant to Section 21-79. In lieu of payment in advance, each applicant shall post a deposit in the
amount hereinafter indicated.
(1) All new businesses beginning business on or after April first of the current year but before April first of
the following year shall post a deposit of two hundred dollars ($200.00).
(2) All new businesses beginning business on or after March first of the current year but before April first
of current year shall post a deposit equivalent to one and one -twelfth (1 1/12) of the required deposit
for all new businesses beginning April first.
Where an applicant's fee is determined to be in excess of the amount of the specified deposit, said deficiency
shall be added without interest or penalty to the amount of the applicant's renewal fee as calculated pursuant to
Sections 21-77 or 21-79. Where an applicant ceases to transact and carry on the business licensed on or before the
expiration of the period for which the new license is issued, and where the applicant's fee is determined to be in
excess of the amount of the specified deposit, the applicant shall remain liable for said deficiency which shall be
deemed due and collectible at the same time and in the same manner as all other annual gross receipts fees due
and payable upon renewal.
Where an applicant's fee is determined to be less than the amount of the specified deposit, said surplus shall
be applied without interest as a credit against the amount of the applicant's renewal fee as calculated pursuant to
Sections 21-77 or 21-79. Where an applicant ceases to transact and carry on the business licensed on or before the
expiration of the period for which the new license is issued, and where the applicant's fee is determined to be less
than the amount of the specified deposit, said surplus may be requested by applicant as a refund; provided,
however, that such request must be made in writing and must be made within one (1) year of the expiration of the
initial license period.
(d) Notwithstanding subsection (b) above, unless an adjustment or exemption is obtained pursuant to this
Chapter, the minimum tax pursuant to this section shall be in the amount as specified in Section 21-120n.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2131, § 3, 7-15-91; Ord. No. NS-2161, § 8, 6-15-92; Ord. No. NS-3031,
§ 5, 11-8-22)
Sec. 21-118. Same; nonresident businesses.
(a) All new businesses located elsewhere, excluding businesses engaged in the business of pushcart vending or
in erecting, maintaining and selling of advertising space on off -premises commercial advertising signs in the
city or engaged in the operation of coin -operated machines or devices, or engaged otherwise in vending
operations, but transacting and carrying on business in the city, and for whom flat rates or variable flat rates
are made the basis for fixing the amount of such license, shall have the option of paying the flat rate or
variable flat rate amount or basing the amount of their tax upon their attributable gross receipts in
accordance with Section 21-119(1), to which no basic tax rate amount shall be added, but for which a two -
hundred -dollar -annual deposit shall be required to offset any tax due should applicant cease operation
City of Santa Ana RFP No. 23-165 Page 122 of 196
before the expiration of the license term. Provided further that all such businesses who so elect shall pay in
advance an amount therefor as set forth in Section 21-117, subsection (c) above. Said deposit to be applied
as a credit or to be taken as a refund in the same manner as is set forth in Section 21-117, subsection (c).
(b) All new businesses located elsewhere, but transacting and carrying on business in the city for whom gross
receipts are made the basis for fixing the amount of such license, shall base their tax upon attributable gross
receipts in a manner similar to that of all other similarly classified businesses for whom gross receipts are
made the basis for fixing the amount of their license, to which no basic tax rate amount shall be added.
Provided further that all such businesses shall pay in advance an amount therefor as set forth in Section 21-
117, subsection (c) above. Said deposit to be applied as a credit, or to be taken as a refund in the same
manner as is set forth in Section 21-117, subsection (c).
(c) Unless an adjustment of exemption is obtained pursuant to this Chapter, the minimum tax pursuant to this
section shall be in the amount as specified in Section 21-120n.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 7, 6-18-90; Ord. No. NS-2131, § 4A, 7-15-91; Ord. No. NS-
2133, § 4A, 7-15-91; Ord. No. NS-3031, § 5, 11-8-22)
Sec. 21-118.1. In lieu deposits —Election of alternate in lieu deposit.
Whenever an applicant for a new business license for whom the gross receipts of such business is made the
basis for fixing the amount of such license is required under the terms of Sections 21-117 or 21-118 to post a
deposit in lieu of payment in advance of their business license tax, said applicant may alternatively elect to post an
adjusted deposit amount equal to the amount of their anticipated tax based on an acceptable good -faith
estimation of their expected gross receipts.
(Ord. No. NS-2841, § 6, 2-4-13)
Sec. 21-119. Gross receipts tax rates.
Gross receipts tax rates for the different classifications are as follows:
(1) Classification "A" —All businesses for which no tax is specified elsewhere in this article, including, but
not limited to: retail businesses and sales at retail, services (including real estate brokers, real estate
developers, insurance brokers, life and disability insurance analysts, stock and bond brokers,
commission agents, brokers or merchants, professional services, ambulance services, and recreational
services), hotels, motels, theaters, and food establishments:
For each separate place of business licensed, a basic rate of sixty dollars ($60.00), subject to
adjustment for inflation/deflation in accordance with section 21-120, plus:
$0.65 per $1,000.00
(2) Classification "B"—Manufacturing, processing, wholesale businesses and sales at wholesale, sales of
gasoline and motor fuels, telephone services, and public utility services:
For each separate place of business licensed, a basic rate of sixty dollars ($60.00), subject to
adjustment for inflation/deflation in accordance with section 21-120, plus:
$0.50 per $1,000.00
(3) Classification "C"—Rental of commercial real estate:
For the first property location licensed, a basic rate of sixty dollars ($60.00), subject to adjustment for
inflation/deflation in accordance with section 21-120, plus:
City of Santa Ana RFP No. 23-165 Page 123 of 196
$0.65 per $1,000.00
For each additional property location licensed, a basic rate of ten dollars ($10.00), subject to
adjustment for inflation/deflation in accordance with section 21-120, plus:
$0.65 per $1,000.00
(4) Classification "W—Home based businesses: for each separate place of business licensed, a basic rate of
fifteen dollars ($15.00), subject to adjustment for inflation/deflation in accordance with section 21-
120, plus:
$0.65 per $1,000.00
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2000, § 3, 3-6-89; Ord. No. NS-3031, § 5, 11-8-22)
Sec. 21-119.1. Maximum tax.
The maximum annual business license tax payable for any single business license required to be obtained
pursuant to the Chapter shall not exceed one hundred thousand dollars ($100,000.00), which amount together
with the basic rate amounts established under Section 21-119 shall be subject to annual adjustment in accordance
with Section 21-120.
( Ord. No. NS-3031, § 5, 11-8-22)
Ord. No. NS-3031 , § 5, adopted November 8, 2022, renumbered §§ 21-119.1-21-119.3 as §§ 21-119.2-21-
119.4.
Sec. 21-119.2. Holding companies and pass -through entities —Minimum tax amount.
Whenever a business entity or other person functions as a holding company or pass -through entity and does
not directly generate gross receipts within the city, but otherwise transacts and carries on business within the city,
or maintains a business presence in the city, or is registered as a business entity with the California Secretary of
State pursuant to the California Corporations Code as the same now exists or as may be hereafter amended from
time -to -time with a designated or registered business entity address located in the city, then the business license
tax liability of such business entity or person under Section 21-119 shall be limited to the minimum tax amount.
(Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-3031 , § 5, 11-8-22)
Editor's note(s)—See editor's note, § 21-119.1.
Sec. 21-119.3. Home -based businesses —Alternate tax.
(a) Persons liable under the terms of this Chapter for gross receipts business license taxes for business
conducted from a home residence within the city and whose gross receipts therefrom do not exceed the
annual amount specified in Section 21-120h(1)(a) per year shall have the right to elect an alternate flat rate
business license tax as set forth in Section 21-120h of this Chapter for home based businesses and home
based occupations, in lieu of the gross receipts tax which would otherwise be applicable. Such election shall
be made in writing at the time of applicant's original application for a business license or may be made once
annually thereafter at the time of licensee's application for a renewal license.
(b) Home based businesses and home occupations eligible for election of an alternate flat rate tax assessment
shall be deemed to be those businesses or occupations conducted from a home residence in the city whose
business or occupational use of said residential premises meets the requirements for a home occupation
City of Santa Ana RFP No. 23-165 Page 124 of 196
permit as set forth in Sections 41-193.1 through 41-607 of this Code as the same now exist or as they may be
hereafter amended from time -to -time.
(Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-3031, § 5, 11-8-22)
Editor's note(s)—See editor's note, § 21-119.1.
Sec. 21-119.4. Election of an alternate tax assessment basis —Effect.
In every case where a licensee exercises a right under this Chapter to elect an alternate tax assessment basis
the effect of said election shall be as follows:
(a) In the event an existing licensee elects to convert their annual license assessment to an alternate tax
assessment basis with an annual term beginning one (1) or more calendar quarters before the
commencement of their pre-existing tax assessment basis and ending one (1) or more calendar
quarters after the conclusion of their pre-existing tax assessment basis, then their initial alternate tax
assessment shall be subject to a quarterly proration to account for the reduced number of calendar
quarters remaining in the term of the newly elected tax assessment.
(b) In the event an existing licensee elects to convert their annual license assessment to an alternate tax
assessment basis with an annual term beginning one (1) or more calendar quarters after the
commencement of their pre-existing tax assessment basis and ending one (1) or more calendar
quarters after the conclusion of their pre-existing tax assessment basis, then their pre-existing tax
assessment shall be retroactively increased pro rata by the number of quarters necessary to account
for the quarterly periods remaining between the conclusion of their pre-existing licensing term and the
commencement of their alternate tax assessment licensing term.
(Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-3031, § 5, 11-8-22)
Editor's note(s)—See editor's note, § 21-119.1.
Sec. 21-120. Flat rate and variable flat rate tax schedules; adjustment for inflation/deflation.
(a) Flat rate and variable flat rate taxes are as set forth in Section 21-120a through 21-120w of this article.
(b) Each tax, including each of its components, and any specified deposit amount required in lieu thereof,
together with any other charges which are imposed pursuant to this chapter, but excluding the individual
gross receipts tax rates set forth in section 21-119, shall be automatically adjusted on November 1, 2023, and
on November 1 of each year thereafter, upward or downward, equivalent to the most recent change in the
annual average of the consumer price index (All Urban Consumers 1982-84 = 100) as published by the United
States Department of Labor for the Los Angeles -Long Beach -Anaheim metropolitan area as the same now
exists or as shall be from time to time amended by the United States Department of Labor.
(c) For purposes of calculating the annual inflator/deflator factor under this section, the base year shall be that
year ending with the quarter ending June 30, 2022. Rates (tax rates, basic rate amounts, charges, specified
deposit amounts, qualifying threshold amounts, maximum tax cap amounts) shall first be adjusted on
November 1, 2023, and thereafter, based on the annually calculated change from the base year through to
September 30 of each successive year. Said change shall be rounded off to the nearest whole dollar as
follows: If the remaining fraction of a dollar is forty-nine one -hundredths of a dollar or less, such fraction
shall be omitted. If the remaining fraction of a percent is fifty one -hundredths of a dollar or more, the next
highest dollar shall be applied.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2131, § 5, 7-15-91; Ord. No. NS-3031, § 5, 11-8-22)
City of Santa Ana RFP No. 23-165 Page 125 of 196
Sec. 21-12Oa. Advertising services, amusement services.
(1) ADVERTISING SERVICE:
(a) Distributing samples or posting bills$250.00 A
(2) AMUSEMENT SERVICES:
(a) Amusement center (a location where mechanical devices or animals are maintained for
furnishing rides or entertainment and which may also include vending stands):
(i) More than ten (10) days:
Base rate500.00 M
Plus, for each ride or vending stand in excess of 1060.00 Q
(b) Sporting exhibitions100.00 D
(c) Carnival, circuses, concerts, tent shows and open air shows seating not more than four thousand
(4,000) persons:
First day200.00 D
Each additional day100.00 D
(d) Carnival, circuses, concerts, tent shows and open air shows seating more than four thousand
(4,000) persons:
First day500.00 D
Each additional day300.00 D
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 8, 6-18-90; Ord. No. NS-3031, § 5, 11-8-22)
Sec. 21-12Ob. Building tradesmen and taxi companies.
(1) BUILDING TRADESMEN, per individua135.00 A
(2) TAXI COMPANY, per vehicle35.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 9, 6-18-90; Ord. No. NS-2349, § 1, 5-18-98; Ord. No. NS-3031,
§ 5, 11-8-22)
Sec. 21-12Oc. Catering trucks, change in location amendment charge, change in name
amendment charge, Christmas tree and pumpkin lots, contractors.
(1) CATERING TRUCKS, per vehicle$250.00 A
(2) CHANGE IN LOCATION AMENDMENT CHARGE, per Iicense15.00 C
(3) CHANGE IN NAME AMENDMENT CHARGE, per Iicense15.00 C
(4) CHRISTMAS TREE LOTS, per Iot8.00 D
(5) PUMPKIN PATCH LOTS, per Iot8.00 D
(6) CONTRACTOR —GENERAL CONTRACTOR, prorated quarterly per contractor300.00 A
(7) CONTRACTOR —SPECIALTY and SUBCONTRACTOR, prorated quarterly per contra ctor275.00 A
City of Santa Ana RFP No. 23-165 Page 126 of 196
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 10, 6-18-90; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-
3031, § 5, 11-8-22)
Sec. 21-120d. Dances, duplicate license charge.
(1) DANCE, PUBLIC, per dance35.00 D
(2) DUPLICATE LICENSE CHARGE, per Iicense10.00 C
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)
Sec. 21-120e. Reserved.
Sec. 21-120f. Firework stand.
FIREWORK STAND, per stand$250.00 ;
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3031, § 5, 11-8-22)
Sec. 21-120g. Gardeners or lawn maintenance workers.
GARDENERS OR LAWN MAINTENANCE WORKER, per individual$ 35.00 A;
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3031 , § 5, 11-8-22)
Sec. 21-120h. Home -based businesses, home occupations, hobby —Gratuitous license charge.
(1) HOME -BASED BUSINESS/HOME OCCUPATION$ 35.00 A
a. QUALIFYING THRESHOLD AMOUNT per licensee50,000.00 T
(2) HOBBY —GRATUITOUS LICENSE CHARGE, per Iicense10.00 C
(Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)
Sec. 21-120i. Independent contractors, ice cream trucks, itinerant merchants, insurance
solicitors, initial period application processing charge.
(1) INDEPENDENT CONTRACTOR, per individual$ 35.00 A
(2) INITIAL PERIOD APPLICATION PROCESSING CHARGE Per license application15.00 C
(3) ITINERANT MERCHANT250.00 Q
(4) INSURANCE SOLICITOR, per solicitor35.00 A
(5) ICE CREAM TRUCKS250.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 11, 6-18-90; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-
3031 , § 5, 11-8-22)
City of Santa Ana RFP No. 23-165 Page 127 of 196
Sec. 21-120j. Janitorial and building maintenance services, junk collection.
(1) JANITORS AND BUILDING MAINTENANCE WORKERS, per individual$ 35.00 A
(2) JUNK COLLECTION, per vehicle250.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 12, 6-18-90; Ord. No. NS-3031, § 5, 11-8-22)
Secs. 21-120k, 21-1201. Reserved.
Sec. 21-120m. Minimum gross receipts —Qualifying threshold amount/gratuitous license
charge.
MINIMUM GROSS RECEIPTS —QUALIFYING THRESHOLD AMOUNT/GRATUITOUS LICENSE CHARGE
(a) QUALIFYING THRESHOLD AMOUNT per licensee$5,000.00 A
(b) GRATUITOUS LICENSE CHARGE, per Iicense10.00 C
( Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)
Sec. 21-120n. New Business —Minimum tax.
NEW BUSINESS —MINIMUM TAX
Per license$10.00 A
( Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)
Sec. 21-120o. Off -premises commercial advertising signs.
OFF -PREMISE COMMERCIAL ADVERTISING SIGNS:
(1) Sign faces with gross dimensions equal to or less than three hundred (300) square feet, per sign
face$ 190.00 A
(2) Sign faces with gross dimensions in excess of three hundred (300) square feet, per sign
face250.00 A
(Ord. No. NS-1926, § 2, 10-19-87; Ord. No. NS-3031 , § 5, 11-8-22)
Sec. 21-120p. Peddlers and pushcarts.
(2) PEDDLER, per peddler as principa1250.00 A
or10.00 D
(3) PEDDLER, per peddler as independent contractor35.00 A
(4) PRINCIPAL'S PEDDLER'S LICENSE$400.00 A
per each person engaged in peddling in the city35.00 A
(5) Reserved.
City of Santa Ana RFP No. 23-165 Page 128 of 196
(6) PUSHCARTS, per pushcart500.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 13, 6-18-90; Ord. No. NS-2131, § 6A, 7-15-91; Ord. No. NS-
2133, § 5A, 7-15-91; Ord. No. NS-3031 , § 5, 11-8-22)
Sec. 21-120q. Reserved.
Sec. 21-120r. Real estate agents, renewal application processing charge, rental of residential
real estate: residential property rental; residential apartment rental; rooming house
rental; residential mobile home property rental; revalidation application processing
charge.
(1) REAL ESTATE AGENT, per agent$ 35.00 A
(2) RENEWAL APPLICATION PROCESSING CHARGE Per license renewal application15.00 C
(3) RESIDENTIAL PROPERTY RENTAL UNIT63.00 A
Plus per each property rental unit13.00 A
(4) RESIDENTIAL APARTMENT RENTAL63.00 A
Plus per each apartment rental unit13.00 A
(5) ROOMING HOUSE RENTAL63.00 A
Plus per each room rental unit13.00 A
(6) RESIDENTIAL MOBILE HOME PROPERTY RENTAL63.00 A
Plus per each rental unit space13.00 A
(7) REVALIDATION APPLICATION PROCESSING CHARGE
Per license revalidation application10.00 C
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)
Sec. 21-120r.1. Residential rental surcharge.
(a) Except as otherwise provided in subsection (b) of this section, the business license tax for residential
property rental and residential apartment rental shall consist of the amount set forth in subsections (2) and
(3) of Section 21-120r plus an annual surcharge of nineteen dollars and fifty cents ($19.50) per each property
rental unit or each apartment rental unit. The surcharge hereby established shall be due and payable and
shall be paid at the same time and in the same manner that the amount due under Section 21-120r is due
and payable. No business license shall be issued unless the surcharge is paid. Penalties and interest shall be
assessed upon the total amount due and unpaid at the rate specified in this Chapter until such time as both
the amount due under Section 21-120r and the surcharge due under this section are paid in full. All
provisions for the enforcement, collection and recovery of unpaid business license taxes shall likewise apply
to the enforcement, collection and recovery of any unpaid surcharge. This section shall expire on, and be of
no further force or effect after December 31, 2015.
(b) The city council may, by resolution, establish a program whereby particular residential properties or
residential apartments, licensed pursuant to this Chapter, may be certified as having met standards of
excellence in property maintenance. In such event, the executive director of the planning and building
City of Santa Ana RFP No. 23-165 Page 129 of 196
agency shall be responsible for the implementation of that program. Owners of property certified pursuant
to that program shall be exempt from the payment of the surcharge specified in subsection (a) of this section
for the three (3) tax years next succeeding the time of such certification. The executive director of the
planning and building agency shall provide the executive director of the finance and management services
agency with listings of licensed properties certified under this program, which shall be periodically updated
to reflect changes. The city council may provide for such financial limitations on the exemptions to be
granted from the surcharge as the city council deems appropriate.
(Ord. No. NS-2173, § 1, 8-17-92; Ord. No. NS-2223, § 1, 7-5-94; Ord. No. NS-2408, § 3, 11-1-99; Ord. No. NS-2527, §
3, 5-19-03; Ord. No. NS-2757, § 3, 9-4-07; Ord. No. NS-2811, § 3, 12-6-10; Ord. No. NS-2824, § 3, 9-19-11)
Sec. 21-120s. Sealing of nonidentified or unlicensed machines; shoeshine stands, solicitors,
swap meet exhibitor.
(1) SEALING OF NONIDENTIFIED OR UNLICENSED MACHINES Per machine$ 10.00 C
(2) SHOESHINE STAND, per operator35.00 A
(3) SOLICITOR, per solicitor as principal250.00 A
(4) SOLICITOR, per solicitor as independent contractor35.00 A
(5) PRINCIPAL'S SOLICITOR'S LICENSE400.00 A
Per each person engaged in soliciting in the city35.00 A
(6) SWAP MEET EXHIBITOR, per participating exhibitor3.00 D
(Ord. No. NS-1922, § 1, 7 20-87; Ord. No. NS-2064, § 15, 6-18-90; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-
3031, § 5, 11-8-22)
Sec. 21-120t. Theatrical performance; tow trucks, trucking and general delivery.
(1) THEATRICAL PERFORMANCE$ 120.00 D
(2) TRUCKING AND GENERAL DELIVERY, per vehicle120.00 A
(3) TOW TRUCKS, per vehicle120.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 16, 6-18-90; Ord. No. NS-3031, § 5, 11-8-22)
Sec. 21-120u. Reserved.
Sec. 21-120v. Vending and coin -operated machines.
COIN -OPERATED MACHINES OR DEVICES:
(1) Per $0.25 device and over
(a) First machine25.00 A
(b) Per additional device13.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)
City of Santa Ana RFP No. 23-165 Page 130 of 196
Sec. 21-120w. Warehouses.
(1) WARE HOUSE$250.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3031 , § 5, 11-8-22)
Sec. 21-121. Reserved.
Ord. No. NS-3031, § 5, adopted November 8, 2022, repealed § 21-121. Former § 21-121 pertained to adjustment
for inflation/deflation and derived from Ord. No. NS-1922, § 1, adopted July 20, 1987.
ARTICLE X1. ASSESSMENT BY LIEN
Sec. 21-122. Nonpayment of tax; assessment by lien; recording and enforcement of liens;
recording service fee.
(a) Recording of a certificate of lien. If any amount, including penalties, interest, and administrative charges
required to be paid under this chapter is not paid when due, the collector or any duly authorized revenue
officer acting as his or her designated agent, may record or cause to be recorded, in the office of the county
recorder(s) of such counties as the collector may determine, a certificate which specifies the amount due,
the name and address of the person liable for the same, a statement that the collector has complied with all
provisions of this chapter in the determination of the amount required to be paid, and a legal description of
the real property owned by such person. From the time of the recording of the certificate, the amount
required to be paid together with penalties, interest, and administrative charges owing constitutes a lien
upon all real property in the county owned by such person or thereafter acquired before the lien expires. The
lien shall have the force, effect and priority of a tax lien and shall continue for ten (10) years from the filing of
a certificate unless sooner released or otherwise discharged.
(b) Recording service fee. Whenever the collector in his or her discretion determines that the recording of a
certificate of lien is desirable to secure and effectuate the collection of any amount required to be paid
under the terms of this chapter, then a recording service fee shall be applicable in the amount as specified by
resolution of the city council.
(Ord. No. NS-2161, § 9, 6-15-92; Ord. No. NS-2841, § 5, 2-4-13)
Editor's note(s)—Ord. No. NS-2841, § 5, adopted February 4, 2013, amended the title of § 21-122 to read as set
out herein. Previously § 21-122 was titled "Nonpayment of tax; assessment by lien."
Secs. 21-123-21-125. Reserved.
Editor's note(s)—Ord. No. NS-2841, § 5, adopted February 4, 2013, repealed §§ 21-123-21-125 in their entirety.
Former §§ 21-123-21-125 pertained to notice of hearing of lien collection of delinquent taxes by special tax
roll assessment; recordation of lien for delinquent charges, respectively, and were derived from Ord. No. NS-
2161, § 9, adopted June 15, 1992.
ARTICLEXII. MARIJUANA COLLECTIVES/COOPERATIVES
City of Santa Ana RFP No. 23-165 Page 131 of 196
Sec. 21-126. Purpose.
This article is required for the purpose of fixing the rate of taxation for marijuana collectives/cooperatives
and for the purpose of providing a tax levy for the usual and current expenses of the City of Santa Ana. The taxes
required to be paid under this article are declared to be required pursuant to the taxing power of the City of Santa
Ana solely for the purpose of obtaining revenue and are not regulatory permit fees.
( Ord. No. NS-2864, § 5, 12-9-14 )
Sec. 21-127. Marijuana collectives/cooperatives—Annual business license tax assessment.
(a) Annual business license tax assessment for marijuana collectives/cooperatives.
(1) Every collective/cooperative whether it is organized or conducted as a "not for profit" business, a
"nonprofit" business, or a "for -profit" business, shall pay an annual business license tax in accordance
with Chapter 21 and the sections and subsections hereunder.
(2) For the purposes of this article, a marijuana collective/cooperative is defined in section 40-101(b) and
is considered to be a business as that term is defined in section 21-3.
(3) For the purposes of this article, a collective/cooperative is not considered to be a religious or charitable
organization.
(4) "Medical marijuana collective/cooperative" or "collective/cooperative" shall mean any activity
regulated or permitted by chapter 40.
(5) For the purposes of this article, a marijuana collective/cooperative is not considered to be a business or
person having a "specified exemption" or "specified exclusion" from business license taxation as set
forth in sections 21-48 and 21-49.
(6) For the purposes of this article, a "nonprofit organization" shall mean any institution or organization
that is exempted from taxes measured by income or gross receipts pursuant to Article XIII, Section 26
of the California Constitution as codified under Chapter 4 (commencing with Section 23701) of Part 11
of Division 2 of the Revenue and Taxation Code and Section 37101 (c) of the Government Code or Sub -
Chapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of
1986. An institution or organization operating as a collective/cooperative and claiming a gross receipts
assessment business license tax exemption under this section shall have the burden of furnishing to
the collector such information as the collector may require to validate the claim of exemption
including, but not limited to, such a determination by the California Franchise Tax Board or any other
information requested by the collector.
(7) For the purposes of this article, "gross receipts" shall mean any transfer of title or possession, exchange
or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal
property for a consideration including any monetary consideration for marijuana whatsoever,
including, but not limited to, membership dues, reimbursements provided by members, regardless of
form, or the total amount of cash or in -kind contributions, including all operating costs related to the
growth, cultivation or provision of marijuana or any transaction related thereto. "Gross receipts" shall
also include without limitation anything else of value obtained by a collective/cooperative. The term
"gross receipts" shall also include the total amount of the sale price of all sales, the total amount
charged or received for the performance of any act, service or employment of whatever nature it may
be, whether or not such service, act or employment is done as a part of or in connection with the sale
of goods, wares, merchandise, for which a charge is made or credit allowed, including all refunds, cash
credits and properties of any amount or nature, any amount for which credit is allowed by the seller to
City of Santa Ana RFP No. 23-165 Page 132 of 196
the purchaser without any deduction therefrom, on account of the cost of the property sold, the cost
of materials used, the labor or service cost, interest paid or payable, losses, or any other expense
whatsoever; provided that cash discounts allowed or payment on sales shall not be included. "Gross
receipts" shall also include the amount of any federal, manufacturer's or importer's excise tax included
in the price of property sold, even though the manufacturer or importer is also the retailer thereof and
whether or not the amount of such tax is stated as a separate charge. "Gross receipts" shall not include
the amount of any federal tax imposed on or with respect to retail sales whether or not the amount of
such tax is stated as a separate charge. "Gross receipts" shall not include the amount of any federal tax
imposed on or with respect to retail sales whether imposed upon the retailer or the consumer and
regardless of whether or not the amount of federal tax is stated to customers as a separate charge, or
any California state, city or city and county sales or use tax required by law to be included in or added
to the purchase price and collected from the consumer or purchaser, or such part of the sales price of
any property previously sold and returned by the purchaser to the seller which is refunded by the seller
by way of cash or credit allowances given or taken as part payment on any property so accepted for
resale. "Gross receipts" shall be calculated without any deduction on account of any of the following:
(i) The cost of tangible property sold or bartered;
(ii) The cost of materials or products used, labor or service cost, interest paid, losses, or other
expense; or
(iii) The cost of transportation of the marijuana, or other property or product.
(b) Business license tax rates for marijuana collectives/cooperatives.
(1) Every collective/cooperative, excepting a qualified "nonprofit organization," whether it is organized or
conducted as a "not for profit" business, a "nonprofit" business, or a "for -profit" business, shall pay a
separate business license tax at a rate of up to ten (10) percent of the gross receipts generated or
otherwise received for each branch establishment or separate property location of the business. The
gross receipts tax shall be initially set at a rate of five (5) percent. The maximum tax rate shall not
exceed ten (10) percent of gross receipts. This tax shall not be adjusted for inflation pursuant to section
21-121.
(2) Notwithstanding the maximum tax rate of ten (10) percent of gross receipts imposed under subsection
(b)(1), the city council may in its discretion at any time by ordinance implement a lower gross receipts
tax rate for all marijuana collectives/cooperatives, as defined in such ordinance, subject to the
maximum rate of ten (10) percent of gross receipts. The city council may by ordinance increase any
such gross receipts tax rate from time to time, not to exceed the maximum gross receipts tax rate
established under subsection (b)(1).
(3) Effective January 1, 2018, the gross receipts tax initially set at a rate of five (5) percent pursuant to
subsection (b)(1), shall be increased to a rate of six (6) percent. The maximum tax rate shall not exceed
ten (10) percent of gross receipts. This tax rate shall not be adjusted for inflation pursuant to section
21-121.
(4) Effective January 1, 2023, the gross receipts tax is set at a rate of six (6) percent pursuant to subsection
(b)(3), shall be decreased to a rate of five (5) percent. The maximum tax rate shall not exceed ten (10)
percent of gross receipts. This tax rate shall not be adjusted for inflation pursuant to section 21-121.
(5) As part of the gross receipts tax imposed by this article, each collective/cooperative shall pay a
minimum basic rate of two thousand dollars ($2,000.00) annually for each separate branch location or
separate property location of the business.
(c) Modification, repeal or amendment. The city council may repeal the ordinance codified in this article, or
amend it in a manner which does not result in an increase in the tax or taxes imposed herein, without further
voter approval. The city council may likewise by ordinance adopt and add additional provisions to any other
City of Santa Ana RFP No. 23-165 Page 133 of 196
article of this chapter and relate them to this article, or amend any existing provisions of any article of this
chapter as they may already relate to this article in any manner which does not result in an increase in the
tax or taxes imposed herein, without further voter approval. If the city council repeals said ordinance or any
provision of this article, it may subsequently reenact it without voter approval, as long as the reenacted
ordinance or section does not result in an increase in the tax or taxes imposed herein.
(d) Administration —Rules, regulations, and guidelines; interpretation/clarification. In order to aid in the city's
collection of taxes due under this article and to ensure that all marijuana collectives/cooperatives are taxed
consistently to the best of the city's ability, the collector, with the concurrence of the city attorney, may
promulgate rules, regulations, and guidelines, to implement and administer this article including, but not
limited to, rules, regulations, and guidelines harmonizing other provisions of this chapter with the provisions
of this article in any manner not inconsistent with the intent of this article and which does not result in an
increase in the tax or taxes imposed herein. The collector may also, with the concurrence of the city
attorney, interpret or clarify the methodology of the tax, or any definition applicable to the tax, so long as
such interpretation or clarification (even if contrary to some prior interpretation or clarification) is not
inconsistent with the language of this article.
(e) Occasional transactions —Exemptions.
(1) The provisions of this article shall not apply to persons having no fixed place of business within the city
who come into the city for the purpose of transacting a specific item of marijuana
collective/cooperative business at the request of a specific patient, client or customer, provided that
such person does not come into the city for the purpose of transacting business on more than five (5)
days during any calendar year.
(2) For any person not having a fixed place of business within the city who comes into the city for the
purpose of transacting collective/cooperative activities, the business tax payable by such person may
be apportioned by the collector in accordance with this chapter.
(f) Reporting and remittance. Beginning as set forth in subsection (k) below, and monthly thereafter, each
marijuana collective/cooperative (except qualified nonprofit organizations exempt from taxes measured by
income or gross receipts) required to pay a tax based on gross receipts under this article, shall report to the
city any gross receipts received during the preceding monthly reporting period and shall likewise remit to the
city the taxes due and owing during said period. For purposes of this section, month shall mean calendar
month, and taxes shall begin to accrue on the date that a person or entity first receives a business license or
other permit to operate as a collective/cooperative.
The payment of the two thousand dollars ($2,000.00) minimum basic rate gross receipts tax required
annually for each separate branch location or separate property location of the business in accordance subsection
(b)(3), shall be made annually prior to the beginning of the fiscal year beginning April first of the current year and
expiring on the 31st day of March of the following year. In the case of a new collective/cooperative the minimum
basic rate gross receipts tax shall be paid in advance prior to any new business activity being undertaken. Every
new licensee shall pay in advance an amount equal to one -quarter (%) of the annual minimum basic rate gross
receipts tax, for each quarter and fraction of a quarter remaining during the period for which the new license is
issued.
(g) Delinquent date —Penalty. Any individual or entity who fails to pay the taxes required by this article when
due shall be subject to penalties and interest as set forth in accordance with this chapter. The collector is not
required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter
and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the
provisions of this chapter.
(h) Payment of tax does not authorize unlawful business.
City of Santa Ana RFP No. 23-165 Page 134 of 196
(1) The payment of a business tax required by this article, and its acceptance by the city, shall not entitle
any person to carry on any collective/cooperative unless the person has complied with all of the
requirements of this Code and all other applicable laws, nor to carry on any collective/cooperative in
any building or on any premises in the event that such building or premises are situated in a zone or
locality in which the conduct of such collective/cooperative is in violation of any law.
(2) No tax paid under the provisions of this article shall be construed as authorizing the conduct or
continuance of any illegal or unlawful business, or any legal business in an illegal manner, or any
business in violation of any ordinance of the city. Nothing in this article implies or authorizes that any
activity connected with the distribution or possession of marijuana is legal unless otherwise authorized
and allowed by California and federal law. Nothing in this section shall be applied or construed as
authorizing the sale of marijuana.
(i) Business license tax certificate —Required. There are imposed upon all persons engaged in transacting and
carrying on any collective/cooperative business activity in the city taxes in the amounts prescribed in this
article. It shall be unlawful for any person, either for him or herself or for any other person, to commence,
transact or carry on any business in the city without first having procured a business license from the city
under this chapter and having paid the taxes set forth in this article, and without complying with any and all
applicable provisions contained in this chapter. The carrying on of any collective/cooperative without
complying with all the provisions of this article shall constitute a separate violation of this chapter for each
and every day that such collective/cooperative is so carried on.
(j) Classification of business license assessment type —Term and renewal. The business license issued to
marijuana collectives/cooperatives shall be classed as a gross receipts assessment type, issued for the same
term of license as set forth in subsection 21-71(c) and shall be subject to renewal in accordance with sections
21-72(c), 21-73(c), and 21-77.
(k) Operative date. Upon the approval by the majority of the voters of the city at the November 4, 2014 general
election, the taxes imposed by this article shall become operative and shall be applied by the collector upon
all marijuana collectives/cooperatives.
(1) Operative date of increased or decreased gross receipts tax rate. The gross receipts tax set initially at a rate of
five (5) percent pursuant to subsection (b)(1) [(Ordinance No. NS-2864, Section 5, adopted 12-9-14)] and
increased to a rate of six (6) percent effective January 1, 2018, pursuant to subsection (b)(3) [(Ordinance No.
NS-2930, Section 8, adopted 11-21-17)], shall be decreased to a rate of five (5) percent effective January 1,
2023, pursuant to subsection (b)(4) [( Ordinance No. NS-3026 , § 8, adopted 10-4-22)].
(m) Notwithstanding the tax rates imposed herein under subsection (1), the City Council may, in its discretion, at
any time by resolution, implement any lower or higher tax rate it deems appropriate, not to exceed the
maximum rate established by subsections (b)(2).
( Ord. No. NS-2864 , § 5, 12-9-14; Ord. No. NS-2930 , § 8, 11-21-17; Ord. No. NS-3026 , § 8, 10-4-22, eff. 1-1-23)
Editor's note(s)—Sec. 21-127, subsection (1), effective January 1, 2023, is hereby adopted by reference and is
subject to amendment from time to time by resolution.
Sec. 21-128. Effect of state and federal reference/authorization.
Unless specifically provided otherwise, any reference to a state or federal statute in this article or chapter
shall mean such statute as it may be amended from time to time, provided that such reference to a statute herein
shall not include any subsequent amendment thereto, or to any subsequent change of interpretation thereto by a
state or federal agency or court of law with the duty to interpret such law, to the extent that such amendment or
change of interpretation would require voter approval under California law, or to the extent that such change
would result in a tax decrease. Only to the extent voter approval would otherwise be required or a tax decrease
City of Santa Ana RFP No. 23-165 Page 135 of 196
would result, the prior version of the statute (or interpretation) shall remain applicable; for any application or
situation that would not require voter approval or result in a decrease of a tax, provisions of the amended statute
(or new interpretation) shall be applicable to the maximum possible extent.
To the extent that the city's authorization to collect or impose any tax imposed under this article is expanded
or limited as a result of changes in state or federal law, no amendment or modification of this article shall be
required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the
authorization up to the full amount of the tax imposed under this article.
( Ord. No. NS-2864, § 5, 12-9-14 )
Sec. 21-129. Violation deemed misdemeanor —Penalty.
Any person violating any of the provisions of this article or any regulation or rule passed in accordance
herewith, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by the
maximum penalties provided for in Penal Code Section 19.
( Ord. No. NS-2864, § 5, 12-9-14 )
Sec. 21-130. Severability.
Should any provision of this article, or its application to any person or circumstance, be determined by a
court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no
effect on any other provision of this article or chapter or the application of this article or chapter to any other
person or circumstance and, to that end, the provisions hereof are severable.
( Ord. No. NS-2864, § 5, 12-9-14 )
Sec. 21-131. Transferability of collective/cooperative business license.
Section 21-67 notwithstanding, business licenses issued to collective/cooperatives pursuant to this article
shall be transferable or assignable upon presentation of a valid regulatory safety permit issued in the name of the
transferee or assignee.
( Ord. No. NS-2918, § 12, 7-5-17 )
Sec. 21-131.1. Sale, assignment, transfer, or termination of business; marijuana
collective/cooperative (medicinal cannabis retail business) owner/operator's duty
to notify; remitting and reporting requirements; closeout audit; successor's duty to
notify; successor's and transferor's joint and several liability; certificate of
nonliability.
(a) Owner/Operator's duty to notify.
Termination of business. A medicinal marijuana collective/cooperative owner/operator (also referred
to herein as medicinal cannabis retail business) who is terminating their business shall notify the
collector in writing of such termination at least ninety (90) days in advance of the date of termination
of business. If the decision to terminate business is made within less than a ninety (90) day period prior
to the date of termination, the owner/operator shall then immediately notify the collector of said
decision and the date of termination of business.
City of Santa Ana RFP No. 23-165 Page 136 of 196
Sale, assignment, or transfer of business. A medicinal cannabis retail business owner/operator who is
selling, assigning, or otherwise transferring their business (hereinafter collectively referred to as
transferor) shall notify the collector in writing of such sale, assignment, or transfer at least ninety (90)
days in advance of the date of the sale, assignment, or transfer and shall notify the collector in writing
of the name and address of the purchaser, assignee, transferee, or other successor in interest
(hereinafter collectively referred to as successor) unless the decision to sell, assign, or otherwise
transfer their business was made within less than a ninety (90) day period prior to the sale, assignment,
or transfer, in which case the transferor shall then immediately notify the successor of the successor's
responsibility for unpaid business license taxes, including penalties, interest, charges, fees, or costs
(hereinafter collectively referred to as business license tax liabilities) for the period prior to the sale,
assignment, or transfer as set forth in subsections (d) and (e) below, and shall further certify in writing
to the collector that the successor was notified of the requirements of this Article regarding their
responsibility for unpaid business license tax liabilities.
(b) Remitting and reporting requirements. Each medicinal cannabis retail business owner/operator upon the
sale, assignment, or other transfer, or termination of business for any reason shall, on or before the last day
of the month following the sale, assignment, transfer, or termination of business, file a final return to the
collector on City approved forms, of the total gross receipts received, adjustments to gross receipts, the
amount of business license tax collected for the reporting period, remittances made, if any, and the balance
of the business license tax due, if any, shall be remitted to the collector.
(c) Closeout audit. After filing the final return and remitting the balance due, the medicinal cannabis retail
business owner/operator shall make its records of account available for a closeout audit by the collector, his
or her revenue officers, or duly authorized employees or agents of the City. The decision to perform a
closeout audit shall be made solely at the discretion of the collector. If, upon closeout audit, or by means of
other information available to them, the collector determines that the owner/operator selling, assigning, or
otherwise transferring, or terminating their business is found to have satisfied all business license tax
liabilities, the collector shall issue to such business owner/operator a certificate of nonliability.
If, upon closeout audit, or by means of other information available to them, the collector determines that the
owner/operator selling, assigning, or otherwise transferring, or terminating their business is deficient in either
their return or remittance, or both, the collector shall immediately notify such owner/operator of the amount of
the net deficiency, plus applicable penalties, interest, charges, fees, or costs. Upon such owner's/operator's
remittance of all business license tax liabilities owing, the collector shall issue a certificate of nonliability.
(d) Successor's duty to notify. If a medicinal cannabis retail business owner/operator decides to sell, assign, or
otherwise transfer their business, their successor shall notify the collector of the date of the sale,
assignment, or other transfer at least ninety (90) days before the date of the sale, assignment, or transfer. It
shall be the duty of the successor to obtain written verification from the collector's office that the transferor
does not have or is not liable for any outstanding business license taxes liabilities. After the successor seeks
written verification from the collector's office, if the collector notifies the successor that the transferor has or
is liable for any outstanding amount of business license tax liabilities, the successor shall withhold an amount
equal to such outstanding business license tax liabilities until the transferor produces a certificate of
nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the
transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment, or
other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the
account of the transferor.
If the decision to sell, assign, or otherwise transfer was made within less than a ninety (90) day period prior to the
date of the sale, assignment, or other transfer, the successor shall notify the collector of the sale, assignment, or
transfer immediately and shall withhold an amount equal to the sum of the transferor's last three (3) months' of
reported and remitted business license taxes until the transferor produces a certificate of nonliability stating the
nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a
City of Santa Ana RFP No. 23-165 Page 137 of 196
certificate of nonliability within ninety (90) days after such sale, assignment, or other transfer, the successor shall
deposit the withheld amount with the collector pending settlement of the account of the transferor.
(e) Joint and several liability. If the successor fails to withhold the applicable amount required under subsection
(d) they shall become jointly and severally liable along with the transferor for the payment of the full amount
of the transferor's business license tax liabilities and shall likewise become jointly and severally liable along
with the transferor for future penalties and/or interest charges as may be applicable as set forth in sections
21-83, 21-84, and 21-85 until all business license tax liabilities are satisfied.
(f) Certificate of nonliability. Upon application of a medicinal cannabis retail business operator/owner who is
terminating their business, or a transferor, or a successor, for a certificate of nonliability, the collector, after
conducting an audit therefore, as he or she may deem necessary, shall issue the certificate if the
owner's/operator's, transferor's, or successor's business license tax liabilities have been satisfied. If any
business license tax liabilities remain outstanding, or if additional business license tax liabilities have accrued
subsequent to the date of application, the collector shall give notice to the operator/owner, transferor, or
successor of the applicable amount which must be fully paid as a condition of issuing their respective
certificate of nonliability. Where a transferor's business license tax liabilities have been partially or wholly
paid by their successor to the collector pursuant to subsection (e) or partially or wholly satisfied by their
successor's action of withholding and depositing amounts with the collector pursuant to subsection (d), no
certificate of nonliability shall be issued to the transferor without the prior written consent of their
successor.
(Ord. No. NS-2972 , § 5, 9-3-19)
Sec. 21-131.2. Vertical and horizontal integration of marijuana collective/cooperative
licensees (medicinal cannabis retail businesses) —Defined.
The terms vertical integration and horizontal integration as used in this Article shall have the following
meanings: Vertical integration shall refer to cannabis businesses operating at different points in the same supply
chain from cultivation to retail sales, as long as they share at least eighty (80) per cent underlying common
ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods.
Horizontal integration shall refer to cannabis businesses operating at the same point in the same supply chain, as
long as they share at least eighty (80) per cent underlying common ownership, regardless of form of business
structure, and are engaged in interparty sales and/or transfers of goods. For purposes of this Article the term
"cannabis businesses" shall include marijuana collectives/cooperatives as defined in section 18-611 and
commercial cannabis businesses as defined in section 40-2, but shall not include commercial cannabis businesses
engaged in testing facilities or testing laboratory businesses.
(Ord. No. NS-2972 , § 6, 9-3-19)
ARTICLE XIII. COMMERCIAL CANNABIS BUSINESSES
Sec. 21-132. Purpose.
This article is required for the purpose of fixing the rate of taxation for commercial cannabis businesses
including delivery, distribution, manufacturing, cultivation, testing and retail sales of cannabis and related
products. This article does not apply to medical marijuana collectives/cooperatives (also referred to as medicinal
cannabis retail businesses) which are subject to a business license tax under article XII of this chapter. The taxes
required to be paid under this article are declared to be required pursuant to the taxing power of the City of Santa
Ana solely for the purpose of obtaining revenue and are not regulatory permit fees.
City of Santa Ana RFP No. 23-165 Page 138 of 196
(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
Sec. 21-133. Commercial cannabis businesses —Annual business license tax assessment.
Every person engaged in a "commercial cannabis business" or "commercial cannabis activity" shall pay an
annual business license tax as outlined below. This Article shall not apply, except with respect to medical marijuana
cooperatives/collectives (also referred to as medicinal commercial cannabis medicinal retail businesses) which are
vertically and/or horizontally integrated with commercial cannabis businesses, to medical marijuana
cooperatives/collectives which are governed by Article XII of this Chapter, or to personal cultivation as defined in
section 40-101(b) of this Code.
(a) For each branch establishment or separate property location of a commercial cannabis business
transacted and carried on in the city, and for each separate type of commercial cannabis business
conducted at the same location, the higher of the two (2) following tax rates shall be due to the City for
each monthly reporting period:
(1) Up to ten (10) percent of each dollar of gross receipts received or generated for each monthly
reporting period.
(2) Up to thirty-five dollars ($35.00) per square foot (annual tax rate) prorated monthly to one -
twelfth ( 1/12) of the annual tax rate amount.
(b) These tax rates shall not be adjusted for inflation pursuant to section 21-121 of this Chapter.
(c) Notwithstanding the tax rates imposed herein under subsection (a), the City Council may, in its
discretion, at any time by resolution, implement any lower tax rate it deems appropriate, and may by
resolution increase such tax rate from time to time, not to exceed the maximum rates established by
subsection (a).
(d) As of the operative date of this Article, the business license gross receipts tax rates and square footage
tax rates application to specific commercial cannabis business activities have been established by city
ordinance [(Ordinance No. NS-2962, Section 2 (Exhibit A-1), adopted 11-6-18; and Ordinance No. NS-
2972, Section 7, adopted 9-3-19)] and by the following resolutions as referenced herein below in
subsections (s), (t), and (u).
Commercial Cannabis Business Activity
Gross Receipts
Gross Square
Tax Rate
Footage Tax Rate
Adult -use Cannabis Retail Business (including Delivery)
8%
$ 25.00
(effective beginning December 21, 2018 through December
31, 2022)
Adult -use Cannabis Retail Business (including Delivery, but
7%
$ 25.00
not including Consumption Lounge and Temporary
Consumption and/or Special Events) (effective beginning
January 1, 2023)
Adult -use Cannabis Retail Business (including Delivery and
7%
$ 25.00
Consumption Lounge)
(effective beginning January 1, 2023)
Adult -use Cannabis Retail Business (Temporary
7%
$ 0.00
Consumption and/or Special Events)
(effective beginning January 1, 2023)
City of Santa Ana RFP No. 23-165 Page 139 of 196
Qualified Social Equity Adult -use Cannabis Retail Business
5%
$ 25.00
(including Delivery and Consumption Lounge)
(effective beginning January 1, 2023)
Qualified Social Equity Adult -use Cannabis Retail Business
5%
$ 0.00
(Temporary Consumption and/or Special Events)
(effective beginning January 1, 2023)
Cultivation
6%
$ 10.00
(effective December 21, 2018 through December 31, 2022)
Cultivation
1%
$ 7.00
(effective beginning January 1, 2023)
Distribution
6%
$ 4.00
(effective December 21, 2018 through December 31, 2022)
Distribution
1%
$ 3.00
(effective beginning January 1, 2023)
Manufacturing
6%
$ 10.00
(effective December 21, 2018 through December 31, 2022)
Manufacturing
1%
$ 3.00
(effective beginning January 1, 2023)
Shared Manufacturing
1%
$ 0.00
(effective beginning January 1, 2023)
Microbusinesses
Adult -use Retail
Adult -use Retail
(Tax rates apply proportionally to microbusiness' activities
8%
$ 25.00
corresponding to Adult -use Retail [Adult -use Retail
Cultivation,
Cultivation &
(including
Distribution &
Manufacturing
Delivery)]/Cultivation/Manufacturing/Distribution)
Manufacturing
$ 10.00
(effective October 4, 2019 through December 31, 2022)
6%
Distribution
$ 4.00
Microbusinesses
Adult -use Retail
Adult -use Retail
(Tax rates apply proportionally to microbusiness' activities
7%
$ 25.00
corresponding to Adult -use Retail [Adult -use Retail
Cultivation,
Cultivation
(including Delivery, but not including Consumption Lounge
Distribution &
$ 7.00
and Temporary Consumption and/or Special
Manufacturing
Distribution &
Events)]/Cultivation/Manufacturing/Distribution)
1%
Manufacturing
(effective beginning January 1, 2023)
$ 3.00
Testing Facility or Testing Laboratory
5%
$ 1.50
(effective December 21, 2018 through June 30, 2019)
Testing Facility or Testing Laboratory
1%
$ 1.50
(effective July 1, 2019)
With respect to commercial cannabis businesses not having a fixed place of business within the city but
conducting regular, non -incidental commercial cannabis business activities within the city, such
businesses shall be subject to the gross receipts tax rate(s) pursuant to this Article based on the
category/categories of commercial cannabis activity conducted. However, such out-of-town
commercial cannabis businesses shall not be subject to any gross square footage tax rate(s).
City of Santa Ana RFP No. 23-165 Page 140 of 196
(e) As part of the annual gross receipts/square footage tax(es) imposed by this Article, each commercial
cannabis business located within the city shall pay a minimum basic rate of two thousand dollars
($2,000.00) annually for each branch establishment or separate property location of the commercial
cannabis business transacted and carried on in the city, and for each separate type of commercial
cannabis business conducted at the same location. Commercial cannabis businesses having no fixed
place of business within the city shall be exempted from this requirement. Provided, however, as
follows:
(1) that commercial cannabis microbusinesses shall pay a minimum basic rate of two thousand
dollars ($2,000.00) annually for each branch establishment or separate property location of the
commercial cannabis business transacted and carried on in the city, but not for each separate
type of commercial cannabis business conducted at the same location; and
(2) that City licensed commercial cannabis retail businesses which are also licensed by the City for
adult -use cannabis retail business (temporary consumption and/or special events), or socially
equitable adult -use cannabis retail business (temporary consumption and/or special events) shall
pay a minimum basic rate of two thousand dollars ($2,000.00) annually for each branch
establishment or separate property location of the commercial cannabis business transacted and
carried on in the city, but not for each separate type of commercial cannabis retail business
conducted at the same location; and
(3) that whenever in the discretion of the Collector, for the purposes of more fully achieving the
intent of this Article, or to more efficiently and equitably administer the provisions of this Article,
additional administrative commercial cannabis business licenses are required to allow the for the
recognition of fee -exempt activities, or to allow for the separate accounting and apportionment
of one (1) or more taxable endeavors relating to sub -activities incorporated within a consolidated
commercial cannabis tax activity under subsection (d), then the Collector shall require that the
affected commercial cannabis business obtain such administrative license(s), and in the case of
taxable activities, separately report and pay the applicable gross receipts tax(es) due under the
consolidated commercial cannabis tax activity to which said administrative license(s) relate. In
such case, the minimum basic rate of two thousand dollars ($2,000.00) annually per license, shall
not be applied, however, such administrative license(s) are subject to all other requirements
under this Chapter, including all applicable licensing charges and service fees.
(f) In the event the City should in the future permit additional categories of commercial cannabis business
activity, as may from time to time be licensed by the State of California, such categories of commercial
cannabis activities shall be subject to the same maximum tax rates as imposed herein. The City may by
ordinance of the City Council initially set the required gross receipts/gross square footage tax rates
based on category of cannabis business activity at lesser rates as may be deemed appropriate by the
City Council.
(g) For purposes of this Article, a commercial cannabis business is not considered to be a business or
person having a "specified exemption" or "specified exclusion" from business license taxation as set
forth in sections 21-48 and 21-49 of this Chapter.
(h) For purposes of this Article any person claiming an exemption from the gross receipts tax rate
component of the combined gross receipts/square footage tax imposed under this Article on the basis
of a claim of being a qualified "nonprofit organization" shall have the burden of substantiating their
claim to the same extent and in the same manner as a marijuana collective/cooperative in accordance
with section 21-127(a)(6) of this Chapter.
(i) Cannabis businesses shall not pass the taxes imposed by this Article through to an adult -use cannabis
retail business customer or commercial cannabis business customer in any fashion except as part of the
basic product sales and/or service price.
City of Santa Ana RFP No. 23-165 Page 141 of 196
(j) Definitions. For purposes of this Article, the following terms have the following meanings:
(1) "Adult -Use cannabis retail business" as defined in section 40-2(4) of this Code.
(2) "Commercial Cannabis Activity" as defined in section 40-2(9) of this Code.
(3) "Commercial cannabis business" as defined in section 40-2(10) of this Code excluding medical
marijuana collectives/cooperatives also referred to as medicinal cannabis retail sales.
(4) "Commercial cannabis adult -use retail business" as defined in section 40-2(39.4).
(5) "Consumption Lounge" as defined in section 40-2(39.1) of this Code.
(6) "Cultivation" as defined in section 40-2(11) of this Code.
(7) "Delivery" as defined in section 40-2(13) of this Code.
(8) "Distribution" as defined in section 40-2(16) of this Code.
(9) "Gross receipts" - section 21-3 of this Chapter notwithstanding, "gross receipts" for the purposes
of this Article shall mean:
(A) Transfer of title or possession, exchange or barter, conditional or otherwise, in any manner
or by any means whatsoever, of tangible personal property for a consideration including
any monetary consideration for cannabis, including, but not limited to, membership dues,
reimbursements provided by members, regardless of form, or the total amount of cash or
in -kind contributions, including all operating costs related to the growth, cultivation,
manufacturing, distribution, testing, or provision of cannabis or any transaction related
thereto;
(B) Anything else of value obtained by an a cannabis business;
(C) The total amount of the sale price of all sales and services;
(D) The total amount charged or received for the performance of any act, service or
employment of whatever nature it may be, whether or not such service, act or
employment is done as a part of or in connection with the sale of goods, wares, or
merchandise (whether at wholesale or retail), for which a charge is made or credit allowed,
including all refunds, cash credits and properties of any amount or nature;
(E) Any amount for which credit is allowed by the seller to the purchaser without any
deduction therefrom, on account of the cost of the property sold, the cost of materials
used, the labor or service cost, interest paid or payable, losses, or any other expense
whatsoever; provided that cash discounts allowed or payment on sales shall not be
included;
(F) The amount of any federal manufacturer's or importer's excise tax included in the price of
property sold, even though the manufacturer or importer is also the retailer thereof;
(G) The amount of any California state cannabis excise tax or state cannabis cultivation tax
included in the price of the product;
(H) "Gross receipts" shall not include the following:
i. The amount of any federal tax imposed on or with respect to retail or
wholesale sales or the sale of services whether imposed upon the cannabis
business or the consumer whenever the amount of federal tax is authorized by
law to be stated and passed through to customers as a separate charge.
City of Santa Ana RFP No. 23-165 Page 142 of 196
Any California state, county, or city sales or use tax, including any add -on,
district, or transaction and use tax, required by law to be included in or added
to the purchase price and collected from the consumer or purchaser, or such
part of the sales price of any property previously sold and returned by the
purchaser to the seller which is refunded by the seller by way of cash or credit
allowances given or taken as part payment on any property so accepted for
resale; or
iii. The amount of the sale price of business personal property (all property owned
or leased by a cannabis business operator used in the operation cannabis
business activities, including, but not limited to: furniture, fixtures, and
business equipment); real property, including land, buildings and other
improvements.
iv. The amount of equity contributions, investments, and/or loan proceeds to
cannabis business' operation, and/or proceeds from the sale or transfer of
cannabis business' retail or commercial cannabis business.
V. The amount of interparty sales and/or transfers of goods within a single
vertically and/or horizontally integrated cannabis business, where the sales or
transfers goods are between two (2) or more commercial cannabis business
licensees (excluding testing facilities or testing laboratories), or one (1) or more
said commercial cannabis business licensee(s) and one (1) or more medicinal
cannabis retail business licensee(s), as set forth in accordance with section 21-
131.2 and/or section 21-142.
(1) "Gross receipts" shall be calculated without any deduction on account of any of the
following:
i. The cost of tangible or intangible property sold or bartered;
ii. The cost of materials or products used, labor or service cost, interest paid,
losses, or other expense;
iii. The cost of transportation of cannabis, or other property or product;
iv. The amount of any federal or state income or franchise taxes; and
V. Any other business costs or expenses, unless otherwise specifically exempted.
(10) "Gross square foot" or "gross square footage" for the purposes of this Article shall mean:
(A) In the case of commercial cannabis businesses licensed by the state to engage in an adult -
use cannabis retail business, the gross number of square feet comprising the adult -use
cannabis retail property location as confirmed by the corresponding "approved building
set" or "approved certificate of occupancy" on file with the City of Santa Ana Planning and
Building Agency, whichever is the greater of any square footage indicated, whether such
adult -use cannabis retail business is part of an on -site vertically or horizontally integrated
cannabis business or not.
(B) In the case of commercial cannabis businesses licensed by the state to engage in
cultivation, the aggregate number of square feet comprising all areas of the premises
under "canopy," whether such sum is greater or lesser than the gross square footage as
stated in the "approved building set" or "approved certificate of occupancy," and whether
such commercial cannabis cultivation business is part of an on -site vertically integrated
cannabis business or not.
City of Santa Ana RFP No. 23-165 Page 143 of 196
"Canopy" shall mean the designated area(s) of a premises that will contain mature plants at
any point in time. Canopy shall be calculated in square feet and measured using clearly
identifiable boundaries of all area(s) that will contain mature plants at any point in time,
including all of the space(s) within the boundaries. Canopy may be noncontiguous, but each
unique area included in the total canopy calculation shall be separated by an identifiable
boundary which includes interior walls, shelves, greenhouse walls, hoop house walls,
garden benches, hedgerows, fencing, garden beds, or garden plots; and if mature plants
are being cultivated using a shelving system, the surface area of each level shall be included
in the total canopy calculation.
Canopy shall be subject to independent measurement and calculation by duly authorized
employees or agents of the City at the time of application for a Santa Ana Business License
and annually thereafter at the time of the renewal of such license, or more often as may be
deemed necessary in the discretion of the collector. Whenever an independent canopy
measurement and calculation is required under the terms of this Article or whenever the
collector in his or her discretion determines that the independent measurement and
calculation of a licensee's canopy is desirable to effectuate the proper assessment or
collection of the business license taxes required to be paid under the terms of this Chapter,
or for any other purposes related to the express aims of this Article then a canopy
measurement shall be performed and a corresponding service fee shall be applicable in the
amount as specified by resolution of the City Council.
(C) In the case of commercial cannabis businesses licensed by the state to engage in
distribution or manufacturing and that are not occupying the same premises with another
cannabis business, the gross number of square feet as confirmed by the corresponding
"approved building set" or "approved certificate of occupancy" on file with the City of
Santa Ana Planning and Building Agency, whichever is the greater of any square footage
indicated.
(D) In the case of commercial cannabis businesses licensed by the state to engage in
distribution or manufacturing and occupying the same premises with another cannabis
business, the gross number of square feet allocated by the commercial cannabis business
owner/operator respectively for either distribution use or for manufacturing use, whether
the combined sum of all uses is less than, equal to, or greater than the gross square
footage as stated in the "approved building set" or "approved certificate of occupancy."
The number of square feet allocated ("Allocated Square Footage") shall be subject to
independent measurement and calculation by duly authorized employees or agents of the
City at the time of application for a Santa Ana Business License and annually thereafter at
the time of the renewal of such license, or more often as may be deemed necessary in the
discretion of the collector. Whenever an independent allocated square footage
measurement and calculation is required under the terms of this Article or whenever the
collector in his or her discretion determines that the independent measurement and
calculation of a licensee's allocated square footage is desirable to effectuate the proper
assessment or collection of the business license taxes required to be paid under the terms
of this Chapter, or for any other purposes related to the express aims of this Article then an
Allocated Square Footage measurement shall be performed and a corresponding service
fee shall be applicable in the amount as specified by resolution of the City Council.
(E) In the case of commercial cannabis businesses licensed by the state to engage in testing
facilities or testing laboratory businesses, the gross number of square feet comprising such
commercial cannabis business' property location as confirmed by the corresponding
City of Santa Ana RFP No. 23-165 Page 144 of 196
"approved building set" or "approved certificate of occupancy" on file with the City of
Santa Ana Planning and Building Agency, whichever is the greater.
(11) "Manufacturing" as defined in section 40-2(22) of this Code.
(12) "Microbusiness" as defined in section 40-2(24) of this Code.
(13) "Consumption Lounge" as defined in section 40-2(39.1) of this Code.
(14) "Qualified Social Equity Adult -use Cannabis Retail Business" as set out in section 40-16 of this
Code. To include: "Socially Equitable Adult -use Cannabis Retail Business (including Delivery and
Consumption Lounges)," and "Socially Equitable Adult -use Cannabis Retail Business Temporary
Consumption and/or Special Events)."
(15) "Retail business" as defined in section 40-2(39) of this Code.
(16) "Shared manufacturing" as defined in section 40-2(22.5) of this Code.
(17) "Temporary Consumption Event" and "Temporary Consumption Festival" as defined in section
40-2(39.2 and 39.3) of this Code.
(18) "Testing Facility" or "Testing Laboratory" as defined in section 40-2(43) of this Code.
(19) "Wholesale" as defined in section 40-2(44) of this Code.
(k) Modification, repeal or amendment. The City Council may repeal the ordinance codified in this Article,
or amend it in a manner which does not result in an increase in the tax or taxes imposed herein,
without further voter approval. The City Council may likewise by ordinance adopt and add additional
provisions to any other Article of this Chapter and relate them to this Article, or amend any existing
provisions of any Article of this Chapter as they may already relate to this Article in any manner which
does not result in an increase in the tax or taxes imposed herein, without further voter approval. If the
City Council repeals said ordinance or any provision of this Article, it may subsequently reenact it
without voter approval, as long as the reenacted ordinance or section does not result in an increase in
the tax or taxes imposed herein.
(1) Administration —Rules, regulations and guidelines. In order to aid in the city's collection of taxes due
under this Article and to ensure that all commercial cannabis businesses are taxed consistently to the
best of the city's ability, the collector, with the concurrence of the city attorney, may promulgate rules,
regulations, and guidelines, to implement and administer this Article including, but not limited to,
rules, regulations, and guidelines harmonizing other provisions of this Chapter with the provisions of
this Article in any manner not inconsistent with the intent of this Article and which does not result in
an increase in the tax or taxes imposed herein. The collector may also, with the concurrence of the city
attorney, interpret or clarify the methodology of the tax, or any definition applicable to the tax, so long
as such interpretation or clarification (even if contrary to some prior interpretation or clarification) is
not inconsistent with the language of this Article.
(m) Occasional transactions —Exemptions.
(1) The provisions of this Article shall not apply to persons having no fixed place of business within
the city who come into the city for the purpose of transacting a specific item of commercial
cannabis business at the request of a specific client or customer, incidental to a commercial
cannabis business principally established elsewhere, provided that such person does not come
into the city for the purpose of transacting such business on more than three (3) days during any
calendar year.
(2) For any person not having a fixed place of business within the city who comes into the city for the
purpose of transacting commercial cannabis business activities, the business license tax(es)
payable by such person may be apportioned by the collector in accordance with this Chapter.
City of Santa Ana RFP No. 23-165 Page 145 of 196
(n) Reporting and remittance.
(1) Beginning as set forth in subsection (r) below, and monthly thereafter, each commercial cannabis
business required to pay a tax or taxes based on gross receipts under this Article (except qualified
nonprofit organizations exempt from taxes measured by income or gross receipts), shall report to
the city any gross receipts received during the preceding monthly reporting period. In addition,
each cannabis business (including qualified nonprofit organizations) required to pay a tax or taxes
based on square footage shall report to the city the gross square footage of the cannabis
business' property location. Every cannabis business shall then compute the business license
taxes at both the gross receipts rate and the gross square footage rate - prorated monthly to
one -twelfth ( 1/12) of the annual tax rate amount - and shall then remit to the city the amount of
the higher of the two (2) tax calculations due and owing during said period in accordance with
section 21-133, subsection (d). In the case of a qualified nonprofit organization only the gross
square footage computation shall be made and the amount of such calculation shall represent
the amount due and owing during said period. All reporting and remitting made shall be done in
accordance with instructions from the collector and shall be made using forms provided or
approved by the collector.
(2) For purposes of this section, month shall mean calendar month and shall include any fraction of a
month. Taxes shall begin to accrue on the date that a person or entity first receives a business
license or other city permit to operate as a commercial cannabis business or upon the operative
date of this Article should a person or entity already possess a commercial cannabis business
license or other city permit to operate as a commercial cannabis business.
(3) The payment of the two thousand dollars ($2,000.00) minimum basic rate gross receipts tax
required annually for each separate branch location or separate property location of the business
in accordance with this section, shall be made annually prior to the beginning of the fiscal year
beginning April first of the current year and expiring on the 31st day of March of the following
year. In the case of a new commercial cannabis business the minimum basic rate gross receipts
tax shall be paid in advance prior to any new business activity being undertaken. Every new
licensee shall pay in advance an amount equal to one -quarter (%) of the annual minimum basic
rate gross receipts tax, for each quarter and fraction of a quarter remaining during the period for
which the new license is issued.
(o) Delinquent date —Penalty. Any individual or entity who fails to pay the taxes required by this Article
when due shall be subject to penalties and interest as set forth in accordance with this Chapter. The
collector is not required to send a delinquency or other notice or bill to any person subject to the
provisions of this Article and failure to send such notice or bill shall not affect the validity of any tax or
penalty due under the provisions of this Article.
(p) Business license tax certificate/receipt—Required. There are imposed upon all persons engaged in
transacting and carrying on any commercial cannabis business activity in the city taxes in the amounts
prescribed in this Article. It shall be unlawful for any person, either for him or herself or for any other
person, to commence, transact or carry on any business in the city without first having procured a
business license from the city under this Chapter and having paid the taxes set forth in this Article, and
without complying with any and all applicable provisions contained in this Chapter. The carrying on of
any commercial cannabis business activity without complying with all the provisions of this Article shall
constitute a separate violation of this Chapter for each and every day that such commercial cannabis
activity is so carried on.
(q) Classification of business license assessment type —Term and renewal. The business license issued to
commercial cannabis businesses shall be classed as a gross receipts assessment type, issued for the
same term of license as set forth in subsection 21-71(c) of this Chapter and shall be subject to renewal
in accordance with sections 21-72(c), 21-73(c), and 21-77.
City of Santa Ana RFP No. 23-165 Page 146 of 196
(r) Operative date. Upon the approval by the majority of the voters of the city at the November 6, 2018
general election, the taxes imposed by this Article shall become operative and shall be applied by the
collector upon all commercial cannabis businesses.
(s) Operative date of decreased gross receipts tax rate (Testing Facilities or Testing Laboratories). The
gross receipts tax set initially at a rate of five (5) percent for testing facilities or testing laboratories
pursuant to subsection (d) above shall be decreased to a rate of one (1) percent by resolution of the
City Council [Santa Ana City Council Resolution No, 2019-0681 as hereinabove provided for in
accordance with subsection (c), which reduced rate, under the terms of said City Council resolution,
shall become retroactively effective July 1, 2019.
(t) Operative date of decreased gross receipts tax rate (Cultivation, Manufacturing, and Distribution,
Adult -use Cannabis Retail Business (including Delivery and Consumption Lounges), Adult -use Cannabis
Retail Business (Temporary Consumption and/or Special Events). The gross receipts tax set initially at a
rate of six (6) percent for cultivation, manufacturing, and distribution pursuant to subsection (d) above
shall be decreased to a rate of one (1) percent, and the gross receipts tax rate set initially at a rate of
eight (8) for all adult -use cannabis retail business (including delivery) activities pursuant to subsection
(d) above shall be decreased to seven (7) percent to include the sub -activity of consumption lounges,
and the ancillary adult -use cannabis retail business (temporary consumption and/or special events)
activity; the parallel activities of social equity adult -use cannabis retail business (including delivery and
consumption lounge), and the ancillary social equity adult -use cannabis retail business (temporary
consumption and/or special events) activity are set at a reduced five (5) percent, by resolution of the
City Council [Santa Ana City Council Resolution No, 2022-078] as hereinabove provided for in
accordance with subsection (c), which reduced rates, under the terms of said City Council resolution,
shall become effective January 1, 2023.
(u) Operative date of decreased square footage tax rate (Cultivation, Manufacturing, Distribution, Adult -
use Cannabis Retail Business (Temporary Consumption and/or Special Events), Qualified Social Equity
Adult -use Cannabis Retail Business (Temporary Consumption and/or Special Events). The square
footage tax set initially at a rate of ten dollars ($10.00) per square foot for cultivation and
manufacturing, and four dollars ($4.00) per square foot for distribution pursuant to subsection (d)
above shall be decreased to a rate of seven dollars ($7.00) per square foot for cultivation, three dollars
($3.00) per square foot for manufacturing, three dollars ($3.00) per square foot for distribution; and to
a rate of zero dollars ($0.00) per square foot for shared manufacturing, adult -use cannabis retail
business (temporary consumption and/or special events), and qualified social equity adult -use cannabis
retail business (temporary consumption and/or special events) by resolution of the City Council [Santa
Ana City Council Resolution No, 2022-078] as hereinabove provided for in accordance with subsection
(c), which reduced rates, under the terms of said City Council resolution, shall become effective
January 1, 2023.
(v) Notwithstanding the tax rates imposed herein under subsections (d), (s), (t), and (u), the City Council
may, in its discretion, at any time solely by resolution, implement any lower or higher tax rate it deems
appropriate, not to exceed the maximum rates established by subsection (a).
(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18; Ord. No. NS-2972 , § 7, 9-3-19; Ord. No. NS-2930 , § 8, 11-21-17; Ord.
No. NS-3026 , § 9, 10-4-22, eff. 1-1-23)
Editor's note(s)—Sec. 21-133, subsections (s)—(u), effective January 1, 2023, are hereby adopted by reference and
are subject to amendment from time to time by resolution.
City of Santa Ana RFP No. 23-165 Page 147 of 196
Sec. 21-134. Payment of tax does not authorize unlawful business.
(a) The payment of a business tax required by this article, and its acceptance by the city, shall not entitle any
person to carry on any commercial cannabis business unless the person has complied with all of the
requirements of this code and all other applicable laws, nor to carry on any commercial cannabis business in
any building or on any premises in the event that such building or premises are situated in a zone or locality
in which the conduct of such commercial cannabis business is in violation of any law.
(b) No tax paid under the provisions of this article shall be construed as authorizing the conduct or continuance
of any illegal or unlawful business, or any legal business in an illegal manner, or any business in violation of
any ordinance of the city, state or federal law.
(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
Sec. 21-135. Single property location; multiple state licenses; separate city business licenses.
Sections 21-7, 21-8, and 21-9 of this chapter notwithstanding, separate city business licenses, issuable to
commercial cannabis businesses pursuant to this article, shall be required for each separate type of commercial
cannabis business activity transacted and carried on at a single city property location for which a commercial
cannabis business may seek licensure by the state, or for which a state license has been approved or issued.
Provided, however, that commercial cannabis business activity transacted and carried on at a single city property
location for which a commercial cannabis business may seek licensure by the state as a microbusiness, or for which
a state license has been approved or issued as a microbusiness, shall in such case be required to obtain a separate
city business license business for each of the commercial cannabis activities transacted and carried on.
(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18; Ord. No. NS-2930 , § 8, 11-21-17; Ord. No. NS-3026 , § 10, 10-4-22, eff.
1-1-23)
Sec. 21-136. Security for collection of commercial cannabis business' business license tax;
requirement; extension of time; application; failure to post or restore —Effect;
jeopardy determination; refund or release; deposit adjustment —Effect.
(a) Requirement for Security Deposit. To ensure compliance with business license tax payment requirements
established pursuant to this Article, the collector shall require, beginning on the operative date of this
Article, that each commercial cannabis business owner/operator, including, but not limited to, each
purchaser, assignee, transferee, or other successor in interest (hereinafter collectively referred to as
successor) of a commercial cannabis business subject to the business licensing requirements of this Article,
deposit one hundred and twenty (120) days following the last day of the month in which business was first
commenced such security (per individual business license) in a form acceptable to the collector in an amount
not larger than the commercial cannabis business owner's/operator's estimated average monthly business
license tax liability as determined by the collector or the sum of ten thousand dollars ($10,000.00),
whichever is least. Provided, however, in the event that two or more commercial cannabis business licensees
sharing at least eighty (80%) per cent underlying common ownership, regardless of form of business
structure, are engaged in an integrated cannabis business (whether vertically or horizontally integrated) as
defined in section 21-142, then a single consolidated deposit shall be made equal to the deposit amount
owing for the integrated commercial cannabis activity having the highest individual business license tax
liability. Each new city commercial cannabis business licensee shall upon obtaining their City business
license(s) deposit a similar security as applicable per business license within thirty (30) days after
commencing business.
City of Santa Ana RFP No. 23-165 Page 148 of 196
(b) Extension of Time. If, upon request and in the judgment of the collector, a determination of any commercial
cannabis business' estimated average monthly tax liability for purposes of setting the amount of their
required security deposit requires an extension of time beyond one hundred and twenty (120) days following
the last day of the month in which business was first commenced, then the collector may issue a written
notification to such commercial cannabis business granting such extension.
(c) Application of Security Deposit. To recover past -due business license taxes, including penalties, interest,
charges, fees, or costs (hereinafter collectively referred to as business license tax liabilities) remittable by the
depositor, the collector may apply the security deposited with the collector. At least fifteen (15) days prior to
the application of a security deposit, the collector shall serve upon the depositing commercial cannabis
business owner/operator notice of intent to apply the security deposit. Service of notice may be made by
placing the notice in the United States mail, postage prepaid, addressed to the depositing commercial
cannabis business owner/operator at their place of business or other mailing address of record. Any portion
of the security remaining after satisfaction of outstanding business license tax liabilities and any expenses
related to third -party administrative charges or fees relating to the liquidation and application of non -cash
deposits may be retained by the collector for security or in the case of a closeout audit may be paid over by
the collector to the depositing owner/operator. Except in the case of a closeout audit pursuant to section 21-
141, in the event the collector applies the security deposit, or any portion of said deposit, as an offset against
remittable business license tax liabilities and any expenses related to third -party administrative charges or
fees relating to the liquidation and application of non -cash deposits, the commercial cannabis business
owner/operator shall be required within thirty (30) days of the collector's written demand therefor, to re -
deposit the full amount of the required security. In such event the amount of the required security shall be
adjusted by the collector based on the average of the commercial cannabis business' actual monthly gross
receipts tax returns and/or remittances as measured over the last three (3) valid monthly returns and/or
remittances received by the collector or the sum of ten thousand dollars ($10,000), whichever is least, less
any amount remaining on deposit with the collector. Service of demand shall be in the same manner as
stated hereinabove for service of notice.
(d) Failure to Post or Restore Security Deposit —Effect. Failure by a commercial cannabis business licensee to
initially post or restore a security deposit when required by the collector pursuant to this section shall be
cause for suspension and/or revocation of such commercial cannabis business' existing Santa Ana Business
License as set out in section 21-86 of this Chapter. Similarly, in the case of a vertically and/or horizontally
integrated cannabis business, the business license(s) of the integrated commercial cannabis business(es)
shall be likewise subject to suspension and/or revocation.
(e) Jeopardy Determination. If the collector believes that the collection of any business license tax imposed by
this Article will be jeopardized, in whole or in part, by delay in the commercial cannabis business
owner's/operator's timely remittance of the business license tax, the collector shall serve notice upon the
person determined to be liable therefor of their determination of jeopardy and of the business license tax
required to be paid to the City, and demand immediate payment thereof, together with any interest and
penalty determined to be due. The collector may consider all facts and circumstances relevant to
determining whether the collection of any business license tax will be jeopardized by delay, including, but
not limited to, indications that the person liable for the business license tax intends to take or is taking action
to discontinue business activities in the City, dissipate or otherwise remove assets from the City, or sell,
exchange, transfer, assign, or otherwise dispose of such person's business, personal or business income, or
business property. The collector also may consider whether the person liable for the business license tax is or
has been uncooperative or unresponsive in connection with any investigation, examination, audit, deficiency
determination, assessment, or collection action or procedure undertaken by the collector. Ajeopardy
determination of business license tax, penalty, or interest, is immediately due and payable upon the service
of the notice of jeopardy determination on the person determined to be liable therefor. Service of notice of a
jeopardy determination shall be made by: (1) sending the notice initially by electronic mail to the depositing
commercial cannabis business owner's/operator's electronic mail address of record as set out in the
City of Santa Ana RFP No. 23-165 Page 149 of 196
depositing commercial cannabis business owner's/operator's application for business license or most recent
business license renewal affidavit or business license amendment statement; (2) placing the notice for
delivery with an express carrier for next business day delivery, all delivery and tracking charges prepaid,
addressed to the depositing commercial cannabis business owner/operator at their place of business; and/or
(3) conspicuously posting said notice upon the premises of the commercial cannabis business. Service of
notice of a jeopardy determination shall be deemed completed upon tracking confirmation of the delivery of
said notice to the commercial cannabis business owner's/operator's place of business or on the date of the
actual posting of said notice on the premises of the depositing commercial cannabis business
owner/operator. Upon the business day next following the completion of service of notice of a jeopardy
determination upon a depositing commercial cannabis business, the collector in his or her discretion may
proceed with the application of the security deposit upon actual or estimated business license taxes due,
including penalties, interest, charges, or service fees.
(f) Refund or release of security deposit. In the case of the sale, assignment, or other transfer or termination of
business by the depositor pursuant to section 21-141, the collector shall refund or release the security
deposit amount required pursuant to this section, or in the event of prior application of the security deposit
pursuant to subsection (c), any unapplied amount of such security deposit, upon depositor's presentation to
the collector of a certificate of nonliability stating the nonliability of the depositor for payment of business
license taxes as hereunder provided in section 21-141(f).
(g) Deposit adjustment —Effect. In the case of a determination by the collector that the amount of a previously
posted commercial cannabis business owner's/operator's security deposit exceeds the requirements of this
section, then the collector shall adjust the amount of the required security deposit. If the prior security
deposit was posted on a cash basis, then the collector shall refund the excess amount. If the prior security
deposit was posted on a non -cash basis, then an adjusted cash basis security deposit or adjusted non -cash
basis security deposit in a form acceptable to the collector may be posted in exchange for the release of the
prior security deposit.
(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
Sec. 21-137. Effect of state and federal reference/authorization.
Unless specifically provided otherwise, any reference to a state or federal statute in this article or chapter
(whether by direct citation or by definitional reference to another chapter of this code) shall mean such statute as
it may be amended from time to time, provided that such reference to a statute herein shall not include any
subsequent amendment thereto, or to any subsequent change of interpretation thereto by a state or federal
agency or court of law with the duty to interpret such law, to the extent that such amendment or change of
interpretation would require voter approval under California law, or to the extent that such change would result in
a tax decrease. Only to the extent voter approval would otherwise be required or a tax decrease would result, the
prior version of the statute (or interpretation) shall remain applicable; for any application or situation that would
not require voter approval or result in a decrease of a tax, provisions of the amended statute (or new
interpretation) shall be applicable to the maximum possible extent.
To the extent that the city's authorization to collect or impose any tax imposed under this article is expanded
or limited as a result of changes in state or federal law, no amendment or modification of this article shall be
required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the
authorization up to the full amount of the tax imposed under this article.
(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
City of Santa Ana RFP No. 23-165 Page 150 of 196
Sec. 21-138. Violation deemed misdemeanor —Penalty.
Any person violating any of the provisions of this article or any regulation or rule passed in accordance
herewith, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by the
maximum penalties provided for in California Penal Code Section 19. The penalties under this section are in
addition to any other penalties available pursuant to this code.
(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
Sec. 21-139. Transferability of commercial cannabis business license.
Section 21-67 of this chapter notwithstanding, business licenses issued to commercial cannabis businesses
pursuant to this article shall be transferable or assignable upon presentation of a valid regulatory safety permit
issued in the name of the transferee or assignee.
(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
Sec. 21-140. Severability.
Should any provision of this article, or its application to any person or circumstance, be determined by a
court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no
effect on any other provision of this article or chapter or the application of this article or chapter to any other
person or circumstance and, to that end, the provisions hereof are severable.
(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
Sec. 21-141. Sale, assignment, transfer, or termination of business commercial cannabis
business owner's/operator's duty to notify; remitting and reporting requirements;
closeout audit; successor's duty to notify; successor's and transferor's joint and
several liability; certificate of nonliability.
(a) Owner/Operator's duty to notify.
Termination of business. A commercial cannabis business owner/operator who is terminating their
business shall notify the collector in writing of such termination at least ninety (90) days in advance of
the date of termination of business. If the decision to terminate business is made within less than a
ninety (90) day period prior to the date of termination, the owner/operator shall then immediately
notify the collector of said decision and the date of termination of business.
Sale, assignment or transfer of business. A commercial cannabis business owner/operator who is
selling, assigning, or otherwise transferring their business (hereinafter collectively referred to as
transferor) shall notify the collector in writing of such sale, assignment, or transfer at least ninety (90)
days in advance of the date of the sale, assignment, or transfer and shall notify the collector in writing
of the name and address of the purchaser, assignee, transferee, or other successor in interest
(hereinafter collectively referred to as successor) unless the decision to sell, assign, or otherwise
transfer their business was made within less than a ninety (90) day period prior to the sale, assignment,
or transfer, in which case the transferor shall then immediately notify the successor of the successor's
responsibility for unpaid business license taxes, including penalties, interest, charges, fees, or costs
(hereinafter collectively referred to as business license tax liabilities) for the period prior to the sale,
assignment, or transfer as set forth in subsections (d) and (e) below, and shall further certify in writing
City of Santa Ana RFP No. 23-165 Page 151 of 196
to the collector that the successor was notified of the requirements of this Article regarding their
responsibility for unpaid business license tax liabilities.
(b) Remitting and reporting requirements. Each commercial cannabis business owner/operator upon the sale,
assignment, or other transfer, or termination of business for any reason shall, on or before the last day of the
month following the sale, assignment, transfer, or termination of business, file a final return to the collector
on City approved forms, of the total gross receipts received, adjustments to gross receipts, the amount of
business license tax collected for the reporting period, remittances made, if any, and the balance of the
business license tax due, if any, shall be remitted to the collector.
(c) Closeout audit. After filing the final return and remitting the balance due, the commercial cannabis business
owner/operator shall make its records of account available for a closeout audit by the collector, his or her
revenue officers, or duly authorized employees or agents of the City. The decision to perform a closeout
audit shall be made solely at the discretion of the collector. If, upon closeout audit, or by means of other
information available to them, the collector determines that the owner/operator selling, assigning, or
otherwise transferring, or terminating their business is found to have satisfied all business license tax
liabilities, the collector shall issue to such business owner/operator a certificate of nonliability.
If, upon closeout audit, or by means of other information available to them, the collector determines that the
owner/operator selling, assigning, or otherwise transferring, or terminating their business is deficient in either
their return or remittance, or both, the collector shall immediately notify such owner/operator of the amount of
the net deficiency, plus applicable penalties, interest, charges, fees, or costs. Upon such owner/operator's
remittance of all business license tax liabilities owing, the collector shall issue a certificate of nonliability.
(d) Successor's duty to notify. If a commercial cannabis business owner/operator decides to sell, assign, or
otherwise transfer their business, their successor shall notify the collector of the date of the sale,
assignment, or other transfer at least ninety (90) days before the date of the sale, assignment, or transfer. It
shall be the duty of the successor to obtain written verification from the collector's office that the transferor
does not have or is not liable for any outstanding business license taxes liabilities. After the successor seeks
written verification from the collector's office, if the collector notifies the successor that the transferor has or
is liable for any outstanding amount of business license tax liabilities, the successor shall withhold an amount
equal to such outstanding business license tax liabilities until the transferor produces a certificate of
nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the
transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment, or
other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the
account of the transferor.
If the decision to sell, assign, or otherwise transfer was made within less than a ninety (90) day period prior to the
date of the sale, assignment, or other transfer, the successor shall notify the collector of the sale, assignment, or
transfer immediately and shall withhold an amount equal to the sum of the transferor's last three (3) months' of
reported and remitted business license taxes until the transferor produces a certificate of nonliability stating the
nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a
certificate of nonliability within ninety (90) days after such sale, assignment or other transfer, the successor shall
deposit the withheld amount with the collector pending settlement of the account of the transferor.
(e) Joint and several liability. If the successor fails to withhold the applicable amount required under subsection
(d) they shall become jointly and severally liable along with the transferor for the payment of the full amount
of the transferor's business license tax liabilities and shall likewise become jointly and severally liable along
with the transferor for future penalties and/or interest charges as may be applicable as set forth in sections
21-83, 21-84, and 21-85 until all business license tax liabilities are satisfied.
(f) Certificate of nonliability. Upon application of a commercial cannabis business owner/operator who is
terminating their business, or a transferor, or a successor, for a certificate of nonliability, the collector, after
conducting an audit therefore, as he or she may deem necessary, shall issue the certificate of nonliability if
City of Santa Ana RFP No. 23-165 Page 152 of 196
the owner/operator's, transferor's, or successor's business license tax liabilities have been satisfied. If any
business license tax liabilities remain outstanding, or if additional business license tax liabilities have accrued
subsequent to the date of application, the collector shall give notice to the operator/owner, transferor, or
successor of the applicable amount which must be fully paid as a condition of issuing their respective
certificate of nonliability. Where a transferor's business license tax liabilities have been partially or wholly
paid by their successor to the collector pursuant to subsection (e) or partially or wholly satisfied by their
successor's action of withholding and depositing amounts with the collector pursuant to subsection (d), no
certificate of nonliability shall be issued to the transferor without the prior written consent of their
(Ord. No. NS-2972 , § 9, 9-3-19)
Sec. 21-142. Vertical and horizontal integration of commercial cannabis business licensees —
Defined.
The terms vertical integration and horizontal integration as used in this Article shall have the following
meanings: Vertical integration shall refer to cannabis businesses operating at different points in the same supply
chain from cultivation to retail sales, as long as they share at least eighty (80%) per cent underlying common
ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods.
Horizontal integration shall refer to cannabis businesses operating at the same point in the same supply chain, as
long as they share at least eighty (80%) per cent underlying common ownership, regardless of form of business
structure, and are engaged in interparty sales and/or transfers of goods. For purposes of this Article the term
"cannabis businesses" shall include medicinal marijuana collectives/cooperatives as defined in section 18-611 and
commercial cannabis businesses as defined in section 40-2, but shall not include commercial cannabis businesses
engaged in testing facilities or testing laboratory businesses.
(Ord. No. NS-2972 , § 10, 9-3-19)
ARTICLE XIV. TAX HOLIDAY
Sec. 21-143. Development and administration of the tax holiday program.
The City Manager and his or her designee shall develop and administer a Tax Holiday program as authorized
and provided in this article.
( Ord. No. NS-3031, § 6, 11-8-22)
Sec. 21-144. Duration and application of program.
The Tax Holiday program shall be conducted for the period of twelve (12) months as specified hereinafter.
(a) All annual license renewals based upon a flat rate shall be for the twelve-month period beginning
January first of the current year and shall expire on the thirty-first day of December of the current year.
(b) All annual license renewals based upon a variable flat rate shall be for the twelve-month period
beginning July first of the current year and shall expire on the thirtieth day of June of the following
year.
(c) All annual license renewals based upon gross receipts shall be for the twelve-month period beginning
on April first of the current year and shall expire on the thirty-first day of March of the following year.
City of Santa Ana RFP No. 23-165 Page 153 of 196
(d) All quarterly licenses shall be for the period of three (3) months beginning on the first day of January
and ending on the thirty-first day of March; on the first day of April and ending on the thirtieth day of
June; on the first day of July and ending on the thirtieth day of September; on the first day of October
and ending on the thirty-first day of December.
( Ord. No. NS-3031 , § 6, 11-8-22)
Sec. 21-145. Elements of program; requisites for compliance with program.
(a) The provisions of this article shall apply to any persons who are required to obtain a business license and pay
a business license tax under Chapter 21 of the Santa Ana Municipal Code and who files a business license
application and complies with the following program requisites:
(1) Substantially complies with the business license application procedure created and administered by the
City Manager and his or her designee;
(2) For any persons with unlicensed businesses who pay in full all business license taxes for the current tax
year within a ninety (90) day period shall then be excused from all back tax liability, including penalties
and interest, as described in Section 21-15.
(3) For any persons with licensed businesses that are in arrears for business license taxes or under -
assessed as a result of improperly underreporting business license tax liabilities and wish to cure an
arrears or underreporting may do so. However, the principal amount of the arrears outstanding or the
principal amount of the under -assessment must be paid in full in order to qualify for a penalty and
interest Tax Holiday.
(b) For any business license taxes subject to a Tax Holiday under this program, the City Manager and his or her
designee may enter into an installment payment agreement, in lieu of the complete payment required under
subdivision 2 of subsection (a) of this section. Failure of a person paying a business license tax to fully comply
with the terms of the installment payment agreement shall render the waiver of any penalties and interest
applicable thereto null and void, unless the City Manager and his or her designee determines that the failure
was due to reasonable cause and the person substantially complied with the terms of the installment
agreement. An installment agreement under this article shall have a minimum term of six (6) months, by
which date all arrears business license taxes, fees, and costs must be fully paid. The City Manager and his or
her designee may use their discretion to alter any existing installment agreement to reflect the intent of the
Tax Holiday.
( Ord. No. NS-3031, § 6, 11-8-22)
Sec. 21-146. Implementation of article.
The City Manager and his or her designee shall adequately publicize the Tax Holiday program, issue forms
and instructions, and take all other necessary actions needed to implement this article. The City Manager and his
or her designee shall have the discretion to create the application for the Tax Holiday program. The Finance and
Management Services Agency shall have the discretion to determine whether a taxpayer has substantially
complied with the requirements of the Tax Holiday program.
( Ord. No. NS-3031 , § 6, 11-8-22)
City of Santa Ana RFP No. 23-165 Page 154 of 196
EXHIBIT X
SANTA ANA MUNICIPAL CODE - CHAPTER 35 TAXATION, ARTICLE 5 HOTEL VISITORS' TAX
AND ARTICLE 6 UTILITY USERS TAX CODE
ARTICLE V. HOTEL VISTORS' TAX'
Sec. 35-125. Title.
This article shall be known as "The Hotel Visitors Tax Ordinance of the City of Santa Ana."
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 2, 4-5-04)
Sec. 35-126. Definitions.
Except where the context otherwise requires, the definitions given in this section govern the construction of
this article:
(a) Person. The term "person" means any individual, firm, partnership, joint venture, association, social club,
fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee,
syndicate, or any other group or combination acting as a unit.
(b) Hotel. The term "hotel" means any structure, or any portion of any structure, which is occupied or intended
or designed for occupancy by hotel visitors for dwelling, lodging or sleeping purposes, and includes any hotel,
inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment
house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar
structure or portion thereof.
(c) Occupancy. The term "occupancy" means the use or possession, or the right to the use or possession, of any
room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes.
(d) Hotel visitors. The term "hotel visitors" means any person who exercises occupancy or is entitled to
occupancy by reason of concession, permit, right of access, license or other agreement. Any such person so
occupying space in a hotel shall be deemed to be a hotel visitors until after the 30th consecutive day of such
occupancy and said tax shall continue to be due upon all rent collected or accruing prior to said 30th day of
occupancy unless such occupancy is pursuant to a qualifying rental agreement as defined in this article. In
determining whether a person is a hotel visitors, uninterrupted periods of time extending both prior and
subsequent to the effective date of this article may be considered.
(e) Rent. The term "rent" means the total consideration charged to the hotel visitors as shown on the guest
receipt for the occupancy of space in a hotel, including charges for equipment (such as rollaway beds, cribs
and television set, etc.), and in -room services (such as movies and other services not subject to state taxes),
valued in money, whether received or to be received in money, goods, labor or otherwise. It shall include all
receipts, cash, credit, property and services of any kind or nature without any deduction therefrom
whatsoever. The costs of additional goods and services, which are not "rent," but which may be sold as a
package with the room (such as meals, excursions, and recreational services), must be accounted for in
accordance with the rules and regulations promulgated by the finance director.
(f) Operator. The term "operator" means the person who is proprietor of the hotel, whether in the capacity of
owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator
'Editor's note(s)—Ord. No. NS-2648, § 2, adopted April 5, 2004, changed the title of article V from "Transient
Occupancy Tax" to "Hotel Visitors Tax."
City of Santa Ana RFP No. 23-165 Page 155 of 196
performs his functions through a managing agent of any type or character other than an employee, the
managing agent shall also be deemed an operator for the purposes of this article and shall have the same
duties and liabilities as his principal. Compliance with the provisions of this article by either the principal or
the managing agent shall, however, be considered to be compliance by both.
(g) Qualifying rental agreement. The term "qualifying rental agreement" means and shall be limited to a written
contract signed by both the landlord and tenant, legally enforceable by either party thereto, and for a rental
period of not less than thirty (30) consecutive days. Notwithstanding any other provision thereof, the term
"qualifying rental agreement" as used in this article shall expressly exclude:
(1) Any agreement regardless of rental term which is terminated for any reason by either party thereto, or
by mutual consent, prior to the 30th consecutive day of tenancy, or
(2) Any agreement regardless of length of rental term which would be unlawful or constitute a violation of
any provision of law.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 3, 4-5-04)
Sec. 35-127. Tax imposed.
(a) For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of
eleven (11) per cent of the rent charged by the operator. The tax constitutes a debt owned by the transient
to the city that is extinguished only by payment to the operator or to the city. The transient shall pay the tax
to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate
share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing
to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the finance
director may require that such tax shall be paid directly to the finance director.
(b) In the event that a qualifying rental agreement exists between the hotel and any person for occupancy, as
hereinabove defined, for a period in excess of thirty (30) days and in the event that such person allows
occupancy by another person as subtenant, guest, licensee or permittee, the person who has made the
agreement with the hotel as aforesaid shall be subject to and shall pay the tax provided for herein.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-1694, § 1, 8-15-83; Ord. No. NS-1921, § 1, 7-20-87; Ord. No. NS-2162,
§ 1, 6-15-92; Ord. No. NS-2648, § 4, 4-5-04; Ord. No. NS-2673, § 1, 11-2-04; Ord. No. NS-2673, § 1, 11-2-04)
Sec. 35-128. Exemptions.
No tax shall be imposed upon:
(a) Any person as to whom, or any occupancy as to which, it is beyond the power of the city to impose the
tax herein provided;
(b) Any officer or employee of a foreign government who is exempt by reason of express provision of
federal law or international treaty;
(c) Any federal or state officer or employee while on official business only and when payment for such
occupancy is made directly to the operator by duly authorized voucher payment from a governmental
accounting office. This exemption does not exempt a hotel visitors who is employed by the United
States government or the state or their respective instrumentalities from payment of the tax when the
payment is later to be reimbursed by the United States government or the state or their respective
instrumentalities.
City of Santa Ana RFP No. 23-165 Page 156 of 196
No exemption shall be granted except upon a claim therefore made at the time rent is collected and under
penalty of perjury, upon a form prescribed by the finance director.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 5, 4-5-04)
Sec. 35-129. Operator's duties.
(a) Each operator shall collect the tax imposed by this article to the same extent and at the same time as the
rent is collected from every hotel visitors. The amount of tax shall be separately stated from the amount of
the rent charged, and each hotel visitors shall receive a receipt for payment from the operator. No operator
of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax or any part
thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if
added, any part will be refunded except in the manner hereinafter provided. Each operator shall account
separately for and maintain separate monthly summary totals for taxable and nontaxable rents and for taxes
collected.
(b) The operator shall maintain its financial and accounting records in accordance with established accounting
principles acceptable to the finance director. In the event the operator offers paid packages or
complementary services to guests, the charges shall be accounted for in accordance with the rules and
regulations promulgated by the finance director.
(c) The tax required to be collected (any amount unreturned to the hotel visitors which is not tax but was
collected under the representation that it was tax) constitutes a debt owed by the operator to the city and
shall be paid to the city with the monthly remittance.
(d) Whenever an operator who has collected any sum under the representation that it was a tax, which sum is
not required to be collected as a tax, remits said sum to the city and thereafter refunds such sum to such
person in whole or part, such operator may take the amount of such refund as a credit against future taxes
only upon submitting to the finance director a statement under penalty of perjury specifying the reasons for
the credit and providing proof of payment of such refund.
(e) Nothing contained in this article shall be deemed to authorize as a credit against taxes owed any amount
returned by the operator to any tour promoter, travel agent, or third party other than the hotel visitors.
Travel agent commissions are an expense of the operator and may not be deducted from the rent.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 6, 4-5-04)
Sec. 35-130. Registration.
(a) Within thirty (30) days after commencing business each operator of any hotel renting occupancy to hotel
visitors shall register said hotel with the finance director and obtain from him a hotel visitors registration
certificate to be at all times posted in a conspicuous place on the premises. Said certificate shall, among
other things, state the following:
(1) The name of the operator;
(2) The address of the hotel;
(3) The date upon which the certificate was issued;
(4) The words:
"This Hotel Visitors registration certificate signifies that the person named on the face hereof has
fulfilled the requirements of the uniform Hotel Visitors tax ordinance by registering with the finance
director for the purpose of collecting from Hotel Visitors the Hotel Visitors tax and remitting said tax to
City of Santa Ana RFP No. 23-165 Page 157 of 196
the finance director. The certificate does not authorize any person to conduct any unlawful business or
to conduct any lawful business in an unlawful manner, nor to operate a Hotel without strictly
complying with all local applicable laws, including but not limited to those requiring a permit from any
board, commission, department or office of this city. This certificate does not constitute a permit."
(b) No hotel visitors registration certificate issued pursuant to this article shall be transferable or assignable;
provided, that where a person holding a certificate issued under the provisions of this article changes the
name of the business, such person shall upon changing the name make a written application to the finance
director to have said certificate amended to reflect the change in name; and provided further, that transfer,
whether by sale or otherwise, to another person under such circumstances that the real or ultimate
ownership after the transfer is substantially similar to the ownership existing before the transfer shall not be
prohibited by this section. For the purpose of this section stockholders, bondholders, partnerships, or other
persons holding an interest in a corporation or other entity herein defined to be a person are regarded as
having the real or ultimate ownership of such corporation or other entity.
(c) Whenever, upon the sale or transfer of an existing hotel, a hotel visitors registration certificate is applied for,
the finance director shall require that the succeeding operator produce a certificate of nonliability or other
receipt issued by the finance director establishing that no unsatisfied liability for hotel visitors taxes exists.
(d) It shall be unlawful and a misdemeanor to operate a hotel without a valid hotel visitors registration
certificate or to fail to post the certificate issued in a conspicuous place at all times.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 7, 4-5-04)
Sec. 35-131. Reporting and remitting.
All operators shall report and remit monthly the full amount of hotel visitors taxes collected for the previous
month upon the appropriate approved form available from the finance director. Hotel visitors taxes shall be
deemed to be collected at that time at which the rent is earned if the operator uses the accrual basis of accounting
or the time at which rent is received if the operator uses the cash basis of accounting. The same basis of
accounting used for keeping the books and records shall be used for reporting and remitting hotel visitors taxes.
The finance director may establish shorter reporting periods for any certificate holder if he deems it necessary in
order to insure collection of the tax, and he may require further information in the return. Returns and payments
are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this
article shall be held in trust for the account of the city until payment thereof is made to the finance director.
(a) Calendar month reporting period. Each operator reporting on a calendar month basis shall, on or
before the last day of the following month, make a return to the finance director on approved forms of
the total taxable rents charged and the full amount of hotel visitors taxes collected for the previous
month. At the time the return is filed, the full amount of the tax collected shall be remitted to the
finance director.
(b) Timely returns. Returns and taxes remitted monthly and actually received by the finance director on or
before the last day of the following month shall be deemed to be timely filed and remitted; otherwise,
the taxes are delinquent and subject to the penalties imposed pursuant to section 35-132. Provided,
however, that when the last day upon which a return may be filed and taxes remitted falls on a
Saturday, Sunday, or city, state, or national holiday, a timely filing and remittance may be made upon
the first following working day. Returns filed and taxes remitted by mail shall be deemed to be timely
filed only if the envelope or similar container enclosing the returns and taxes is addressed to the
finance director, has sufficient postage and bears a United States postmark or a postage meter imprint
prior to midnight on the last day for reporting and remitting without a penalty, if the last day for
reporting and remitting said tax falls on a weekend or holiday, a filing shall be deemed to be timely
filed if mailed prior to midnight of the first following working day. If such envelope or other container
City of Santa Ana RFP No. 23-165 Page 158 of 196
bears a postage meter imprint as well as a United States Post Office cancellation mark, the latter shall
govern in determining whether the filing and remittance are timely.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 8, 4-5-04)
Sec. 35-132. Penalties and interest; audit deficiency.
(a) Original delinquency. Any operator who fails to remit any tax imposed by this article within the time required
shall pay a penalty of ten (10) percent of the amount of the tax in addition to the amount of the tax.
(b) Continued delinquency. Any operator who fails to remit any delinquent remittance on or before a period of
thirty (30) days following the date on which the remittance first became delinquent shall pay an additional
delinquency penalty of ten (10) percent of the amount of the tax and the ten (10) percent penalty first
imposed. Any operator who fails to remit any delinquent remittance on or before a period of sixty (60) days
following the date on which the remittance first became delinquent shall pay an additional delinquency
penalty of ten (10) percent of the amount of the tax and the ten (10) percent penalty first imposed together
with the additional ten (10) percent penalty imposed.
(c) Audit deficiency. If, upon audit by the city, an operator is found to be deficient in either its return or its
remittance or both, the finance director shall immediately assess the operator the amount of the net
deficiency plus an audit deficiency penalty of ten (10) percent of the amount of the net deficiency. If said
operator's remittance was deficient for a period of greater than thirty (30) days following the date on which
remittance was first delinquent, said operator shall pay an additional audit deficiency penalty of ten (10)
percent of the net deficiency and the ten (10) percent penalty first imposed. If said operator's remittance
was deficient for a period of greater than sixty (60) days following the date on which the remittance first
became delinquent, said operator shall pay an additional audit deficiency penalty of ten (10) percent of the
amount of the tax and the ten (10) percent penalty first imposed together with the additional ten (10)
percent penalty imposed. In addition thereto, the finance director shall assess interest at the rate of one and
one-half (1%) percent per month or fraction thereto on the amount of the net deficiency for each month or
portion thereof for which said operator's remittance was deficient.
(d) Fraud. If the finance director determines that the nonpayment of any remittance due under this article is due
to fraud, a penalty of twenty-five (25) percent of the amount of the tax shall be added thereto in addition to
the penalties stated in subparagraphs (a) and (b) of this section.
(e) Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this article
shall pay interest at the rate of one and one-half (1%) percent per month or fraction thereof on the amount
of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
(f) Penalties merged with tax. Every penalty imposed and such interest as accrues under the provisions of this
section shall become a part of the tax herein required to be paid.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92)
Sec. 35-133. Failure to collect and report tax.
If any operator shall fail or refuse to collect said tax and to make, within the time provided in this article, any
report and remittance of said tax or any portion thereof required by this article, the finance director shall proceed
in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due.
As soon as the finance director shall procure such facts and information as he is able to obtain upon which to base
the assessment of any tax imposed by this article and payable by any operator who has failed or refused to collect
the same and to make such report and remittance, he shall proceed to determine and assess against such operator
the tax, interest and penalties provided for by this article. In case such determination is made, the finance director
City of Santa Ana RFP No. 23-165 Page 159 of 196
shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail,
postage prepaid, addressed to the operator so assessed at his last known place of address. Such operator may,
within ten (10) days after the serving or mailing of such notice, make application in writing to the finance director
for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time
prescribed, the tax, interest and penalties, if any, determined by the finance director shall become final and
conclusive and immediately due and payable. If such application is made, the finance director shall give not less
than five (5) days' written notice in the manner prescribed herein to the operator to show cause at a time and
place fixed in said notice why said amount specified therein should not be fixed for such tax, interest and penalties.
At such hearing, the operator may appear and offer evidence why such specified tax, interest and penalties should
not be so fixed. After such hearing the finance director shall determine the proper tax to be remitted and shall
thereafter give written notice to the person in the manner prescribed herein of such determination and the
amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen (15)
days unless an appeal is taken as provided in section 35-134.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92)
Sec. 35-134. Appeal.
(a) Any person aggrieved by any decision of the finance director or designee with respect to the amount of such
tax, interest and penalties, if any, may appeal within fifteen (15) days pursuant to chapter 3 of this Code. In
the event no appeal is filed within the time prescribed, the decision of the finance director or designee shall
become final and conclusive and shall render any subsequent appeal null and void and shall further act as a
waiver against future action.
(b) Notwithstanding any other provisions contained in this article or any other provision contained in this Code
to the contrary, any operator tendering payment of any tax, interest or penalties to the city pursuant to any
provision of this article shall for all purposes thereafter be precluded and barred from appealing, contesting
or otherwise challenging the validity or amount of any such tax, interest or penalties pursuant to any
otherwise available procedure set forth in this article, or otherwise available by law, unless said payment is
made under written protest to the city. Said written protest shall be deemed made for the purposes of this
article only by one (1) of the following methods: (1) a written notation set forth on the check, draft, money
order, or other negotiable instrument by which payment is tendered, indicating that such payment is made
under protest; or (2) a written notice addressed and delivered to the finance director at the time of payment
indicating that such payment is made under protest.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-1235, § 14, 12-9-74; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. 2792, §
16, 8-17-09)
Sec. 35-135. Records.
(a) It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by
this article to keep and preserve, for the period of the current calendar year and for the prior period of the
three (3) calendar years immediately preceding, all records as may be necessary to determine the amount of
such tax as he may have been liable for the collection of and payment to the city, which records the finance
director shall have the right to inspect at all reasonable times.
(b) Each operator within the city is hereby required to permit an examination of such books and records for the
purposes aforesaid at a location within the City of Santa Ana. In the event such books and records cannot be
made available within the City of Santa Ana, the operator is hereby required to reimburse the city for the
cost of all transportation, lodging, meals, portal to portal travel time, and other incidental costs reasonably
incurred by the city in obtaining said audit.
City of Santa Ana RFP No. 23-165 Page 160 of 196
(c) The information furnished or secured pursuant to this article shall be confidential to the extent allowed by
law; provided, however, this section shall not apply to any disclosures made in connection with any appeal
proceeding pursuant to this article, or any civil action relating to the recovery of such taxes, interest or
penalties, or any prosecution of any person for violation of any provisions of this article.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92)
Sec. 35-136. Refunds.
(a) When made. Whenever the amount of any tax, interest or penalty has been overpaid, or paid more than
once, or has been erroneously or illegally collected or received by the city under this article it may be
refunded as provided in subparagraph (b) and (c) of this section provided a claim in writing therefore, stating
under penalty of perjury the specific grounds upon which the claim is founded, is filed with the finance
director within one (1) year of the date of payment. The claim shall be on forms furnished by the finance
director.
(b) Refund to hotel visitors. An operator may claim a refund or take as credit against taxes collected and
remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it
is established in a manner prescribed by the finance director that the person from whom the tax has been
collected was not a hotel visitors; provided however, that neither a refund nor a credit shall be allowed
unless the amount of the tax so collected has either been refunded to the hotel visitors or credited to rent
subsequently payable by the hotel visitors to the operator.
(c) Hotel visitors recourse. A hotel visitors may obtain a refund of taxes overpaid or paid more than once or
erroneously or illegally collected or received by the city by filing a claim in the manner provided in
subparagraph (a) of this section, but only when the tax was paid by the hotel visitors directly to the finance
director, or when the hotel visitors having paid the tax to the operator, establishes to the satisfaction of the
finance director that the hotel visitors has been unable to obtain a refund from the operator who collected
the tax.
(d) Written records. No refund shall be paid under the provisions of this section unless the claimant establishes
his right thereto by written records showing entitlement thereto.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 9, 4-5-04)
Sec. 35-137. Actions to collect taxes; recording and enforcement of liens; cumulative
remedies.
(a) Actions to collect. Any tax required to be paid by any hotel visitors under the provisions of this article shall be
deemed a debt owed by the transient hotel visitors to the city. Any such tax collected by an operator which
has not been paid to the city shall be deemed a debt owed by the operator to the city. Any person owing
money to the city under the provisions of this article shall be liable to an action brought in the name of the
city for the recovery of such tax, penalties, interest, and administrative costs incurred in connection
therewith, including attorney fees.
(b) Recording of a certificate of lien. If any amount required to be paid under this article is not paid when due,
the finance director or his designated agent may record in the office of the county recorder(s) of such
counties as the finance director may determine a certificate which specifies the amount of tax, penalties and
interest due, the name and address of the operator liable for the same, a statement that the finance director
has complied with all provisions of this article in the determination of the amount required to be paid, and a
legal description of the real property owned by the operator. From the time of the recording of the
certificate, the amount required to be paid together with penalties and interest constitutes a lien upon all
City of Santa Ana RFP No. 23-165 Page 161 of 196
real property in the county owned by the operator or thereafter acquired before the lien expires. The lien
shall have the force, effect and priority of a tax lien and shall continue for ten (10) years from the filing of a
certificate unless sooner released or otherwise discharged.
(c) Warrant for collection of tax. At any time within three (3) years after the recording of a certificate of lien, the
finance director or his designated agent may issue a warrant directed to any sheriff or marshal for the
enforcement of the lien and the collection of any taxes, penalties and interest required to be paid to the city
under this article. The warrant shall have the same effect as a writ of execution and be executed in the same
manner and with the same effect as a levy and sale pursuant to a writ of execution.
(d) Seizure and sale. In lieu of issuing a warrant under subsection (c), at any time within three (3) years after an
assessment was issued or a certificate of lien was recorded under subsection (b), the finance director or his
designated agent may collect the delinquent amount by seizing or causing to be seized any property, real or
personal, of the operator and sell any non -cash or nonnegotiable property or a sufficient part of it at public
auction to pay the amount of tax due together with any penalties and any costs incurred on account of the
seizure and sale. Any seizure made to collect taxes due shall only be of property of the operator not exempt
from execution under provisions of the Code of Civil Procedure.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 9, 4-5-04)
Sec. 35-138. Violations.
(a) Any operator or other person who fails or refuses to register as required herein or to furnish any return
required to be made, or who fails or refuses to furnish a supplemental return or other data required by the
finance director, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and upon
conviction thereof, is punishable as provided for in section 1-8 of this Code. Each day any such violation of
this article shall continue shall constitute a separate offense.
(b) Any person required to make, render, sign or verify any report or claim who makes any false or fraudulent
report or claim with intent to defeat or evade the determination of any amount due required by this article
to be made is guilty of a misdemeanor and is punishable as aforesaid.
(c) Any operator violating any of the other mandatory provisions of this article shall be guilty of misdemeanor
and is punishable as aforesaid. The commencement of criminal proceedings shall neither preclude nor abate
administrative or civil actions to collect taxes due under this article.
(d) It shall not be a defense to violations of this article that the operator, including a resident manager, had
forwarded any return due or taxes collected to its principal or corporate headquarters, nor that any failure to
file or remit taxes was based on the direction or inaction of such principal or corporate headquarters.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92)
Sec. 35-139. Security for collection of the tax.
(a) To ensure compliance with hotel visitors tax payment requirements, the finance director shall require each
new operator subject to such requirements to deposit with the city within one (1) year after the effective
date of this article, or within thirty (30) days after commencing business, whichever is later, such security in a
form acceptable to the finance director in the amount not greater than the person's estimated average
liability for the first period for which a return must be filed or the sum of ten thousand dollars ($10,000.00),
whichever is the lesser. To recover hotel visitors taxes, including penalties and interest, remittable by the
depositor, the finance director may apply the security deposited with the finance director.
City of Santa Ana RFP No. 23-165 Page 162 of 196
(b) At least fifteen (15) days prior to the application of a security deposit, the finance director shall serve upon
the depositing operator notice of intent to apply the security deposit. Service of notice may be made by
placing the notice in the United States mail, postage prepaid, addressed to the depositing operator at his
hotel. Any portion of the security remaining after satisfaction of outstanding hotel visitors taxes, penalties,
interest and costs of sale may be retained by the finance director for security or may be paid over by him to
the depositing operator.
(c) In the case of the transfer or cessation of business by the depositor, the finance director shall refund or
release the security amount required pursuant to this section, upon depositor's presentation to the finance
director of either a receipt from the finance director showing that all hotel visitors taxes, including any
penalty, interest or other charges or costs outstanding, have been paid or a certificate of nonliability stating
the nonliability of the depositor for payment of hotel visitors tax as hereunder provided in section 35-140.
(Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 9, 4-5-04)
Sec. 35-140. Transfer or cessation of business; operator's duty to notify; remitting and
reporting requirements; closeout audit; successor's duty to notify; successor's
liability; certificate of nonliability.
(a) Operator's duty to notify. An operator who is transferring, selling or terminating his business shall notify the
finance director in writing of such sale, transfer or termination and the name and address of the purchaser or
transferee at least thirty (30) days in advance of the date of the transfer, sale or termination, unless the
decision to sell, transfer or terminate was made within less than a thirty -day period prior to the transfer, sale
or termination, in which case the operator shall then immediately notify the purchaser or transferee of their
responsibility for unpaid taxes as set forth in subsections (c) and (d) below, and further certify in writing to
the finance director that the transferee or purchaser was notified of the requirements of this article
regarding its responsibility for unpaid collected taxes.
(b) Remitting and reporting requirements. Each operator upon the transfer or cessation of business for any
reason shall, on or before the last day of the next month following the transfer or cessation of business,
make a return to the finance director on approved forms of the total taxable rents charged, the amount of
tax collected for the reporting period, remittances made, if any, and the balance of the tax due, if any, shall
be remitted to the finance director.
(c) Closeout audit. After filing the final return and remitting the balance due, the operator shall make his records
of account available for a closeout audit by the finance director or duly authorized employee or agent of the
city. If, upon audit by the city, the operator transferring or quitting his business is found to have satisfied all
hotel visitors liability, the finance director shall issue to such operator a certificate of nonliability stating the
nonliability of the operator for payment of hotel visitors taxes. If, upon audit by the city, the operator
transferring or quitting his business is deficient in either his return or his remittance or both, the finance
director shall immediately assess such operator the amount of the net deficiency in accordance with section
35-132 above. Upon such operator's remittance of the deficient amount plus any penalty and interest
assessed, the finance director shall issue a certificate of nonliability.
(d) Successor's duty to notify. If an operator who is liable for any hotel visitors taxes, penalties or interest under
this article sells or otherwise transfers his business, his assignee or successor in interest shall notify the
finance director of the date of the sale or transfer at least thirty (30) days before the date of the sale or
transfer. If the decision to sell or transfer was made within less than a thirty -day period prior to the sale or
transfer, the assignee or successor in interest shall notify the finance director immediately and shall withhold
an amount equal to the accrued or outstanding hotel visitors tax liability of the operator until the
transferring operator produces either a receipt from the finance director showing that the tax, including any
penalty, interest or other charge or cost outstanding, has been paid or a certificate of nonliability stating the
City of Santa Ana RFP No. 23-165 Page 163 of 196
nonliability of the operator for payment of hotel visitors tax. If the transferor does not present a receipt or
notice of nonliability within thirty (30) days after such sale or transfer after such assignee or successor
commences to conduct business, the assignee or successor shall deposit the withheld amount with the
finance director pending settlement of the account of the transferor.
(e) Successor's liability. If the assignee or successor in interest fails to withhold the amount required to satisfy
the tax liability, he shall become personally liable for the payment of the amount required to be withheld by
him and shall be subject to penalty and interest charges as set forth in section 35-132.
(f) Certificate of nonliability. Within thirty (30) days from the receipt of the application of any operator for a
certificate of nonliability for the payment of hotel visitors taxes, the finance director after conducting an
audit therefore shall issue the certificate if the operator's tax liability has been satisfied to the date of the
application. If tax has accrued to that date, the finance director shall give notice to the operator of the
amount which must be paid as a condition of issuing the certificate.
(Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 10, 4-5-04)
Sec. 35-141. Additional powers and duties of tax administrator, etc.
(a) The finance director shall have the power and duty to enforce this article and shall have the power to adopt
rules and regulations not inconsistent with the provisions of this article for the purpose of carrying out and
enforcing the payment, collection and remittance of the taxes herein imposed. A copy of all such rules and
regulations adopted by the finance director shall be maintained on file in the offices of the finance director.
Where uncertainty exists regarding the interpretation of any provision of this article or its application to a
specific hotel, operator or hotel visitors, the finance director shall determine the intent of the provision. Such
determination shall take the form of a written memorandum of intent. A copy of all such memoranda issued
by the finance director shall be maintained on file in the offices of the finance director.
(b) The finance director shall have the further power, for good cause shown, to extend the time for filing any
required report and remitting any taxes collected for thirty (30) days; and shall have the further power, for
good cause shown, to waive or release any cash deposit, bond, bankshare, lien, or other security required
and to compromise any claim as to any penalty imposed or charge demanded.
(c) The finance director may with the consent and approval of the city attorney enter into written agreements
with persons liable for the payment of delinquent taxes, penalties and interest, in monthly installments, or
more often, extending over a period not exceeding one (1) year. In any agreement so entered into, such
person shall acknowledge the obligation owed the city and agree that, in the event of failure to make timely
payment of any installment, the whole amount unpaid, principal together with interest, shall become
immediately due and payable. In the event legal action is brought by the city to enforce collection of any
amount included in the agreement, such person shall pay all costs of suit incurred by the city or its assignee,
including attorney fees. The execution of such an agreement shall not prevent the prior accrual of penalties
and interest on unpaid balances at the rate provided hereinabove, but no penalties or additional interest
shall accrue as hereinafter provided on account of taxes included in the agreement after the execution of the
agreement and the payment of the first installment and during such time as such operator shall not be in
breach of the agreement. The execution of such an agreement shall render any subsequent appeal null and
void and shall constitute a waiver against future action.
(d) In addition to all other authority conferred upon him, the finance director, upon the concurrence of the city
attorney, shall have the authority to discontinue the collection of any claim if it appears that further
proceedings would be without merit.
(Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 10, 4-5-04)
City of Santa Ana RFP No. 23-165 Page 164 of 196
Secs. 35-142-35-150. Reserved.
ARTICLE VI. UTILITY USERS TAX CODE2
Sec. 35-151. Short title.
This article shall be known as the "Utility Users Tax Ordinance of the City of Santa Ana." The word
"ordinance," "code" or "article" as used in this article shall mean the "Utility Users Tax Ordinance" unless
otherwise so indicated.
(Ord. No. NS-2436, § 2, 8-4-00; Ord. No. NS-2860, § 1, 12-9-14 )
Sec. 35-152. Purpose.
This article is required for the purpose of fixing the rate of taxation for the utility users' tax, and for the
purpose of providing a tax levy for the usual and current expenses of the City of Santa Ana.
(Ord. No. NS-2436, § 2, 8-4-00; Ord. No. NS-2860, § 2, 12-9-14 )
Sec. 35-153. Definitions.
The following words and phrases whenever used in this article shall be construed as defined in this section,
unless otherwise indicated.
(a) "Ancillary telecommunication services" means services that are associated with or incidental to the
provision, use or enjoyment of telecommunications services, including but not limited to the following
services:
(1) "Conference bridging service" means an ancillary service that links two (2) or more participants of an
audio or video conference call and may include the provision of a telephone number. Conference
bridging service does not include the telecommunications services used to reach the conference
bridge.
(2) "Detailed telecommunications billing service" means an ancillary service of separately stating
information pertaining to individual calls on a customer's billing statement.
(3) "Directory assistance" means an ancillary service of providing telephone number information, and/or
address information.
(4) "Vertical service" means an ancillary service that is offered in connection with one (1) or more
telecommunications services, which offers advanced calling features that allow customers to identify
callers and to manage multiple calls and call connections, including conference bridging services.
'Editor's note(s)—Ord. No. NS-2436, § 2, adopted August 4, 2000, essentially re-enacted Article VI of this chapter
by repealing the provisions of §§ 35-151-35-168 and replacing them with the similar provisions found in §§
35-151-35-177 as currently set out herein. For a detailed history of former §§ 35-151-35-168, please refer
to the Code Comparative Table.
City of Santa Ana RFP No. 23-165 Page 165 of 196
(5) "Voice mail service" means an ancillary service that enables the customer to store, send or receive
recorded messages. Voice mail service does not include any vertical services that the customer may be
required to have in order to utilize the voice mail service.
(b) "Billing address" shall mean the mailing address of the service user where the service supplier submits
invoices or bills for payment by the customer.
(c) "City" shall mean the City of Santa Ana.
(d) "Day" shall mean a calendar day.
(e) "Gas" shall mean natural or manufactured gas or any alternate hydrocarbon fuel that may be substituted
therefore.
(f) "Mobile telecommunications service" shall mean commercial mobile radio service, as defined in Section 20.3
of Title 47 of the Code of Federal Regulations and as set forth in the Mobile Telecommunications Sourcing
Act (4 U.S.C. Section 124) and the regulations thereunder.
(g) "Month" shall mean a calendar month.
(h) "Non -utility service supplier" means:
(1) A service supplier, other than a supplier of electric distribution services to all or a significant portion of
the city, which generates electricity for sale to others, and shall include but is not limited to any
publicly -owned electric utility, investor -owned utility, cogenerator, distributed generation provider,
exempt wholesale generator (15 U.S.C. Section 79z-5a), municipal utility district, federal power
marketing agency, electric rural cooperative, or other supplier or seller of electricity;
(2) An electric service provider (ESP), electricity broker, marketer, aggregator, pool operator, or other
electricity supplier other than a provider of electric distribution services to all or a significant portion of
the city, which sells or supplies electricity or supplemental services to electricity users within the city;
and
(3) A gas service supplier, aggregator, marketer or broker, other than a supplier of gas distribution services
to all or a significant portion of the city, which sells or supplies gas or supplemental services to gas
users within the city.
(i) "Paging service" means a "telecommunications service" that provides transmission of coded radio signals for
the purpose of activating specific pagers; such transmissions may include messages and/or sounds.
(j) "Person" shall mean, without limitation, any natural individual, firm, trust, common law trust, estate,
partnership of any kind, association, syndicate, club, joint stock company, joint venture, limited liability
company, corporation (including foreign, domestic, and non-profit), joint power agency, municipal district or
municipal corporation (other than the city), cooperative, receiver, trustee, guardian, or other representative
appointed by order of any court.
(k) "Place of primary use" means the street address representative of where the customer's use of the
telecommunications service primarily occurs, which must be the residential street address or the primary
business street address of the customer.
(1) "Post-paid telecommunication service" means the telecommunication service obtained by making a payment
on a communication -by -communication basis either through the use of a credit card or payment mechanism
such as a bank card, travel card, credit card, or debit card, or by charge made to a service number which is
not associated with the origination or termination of the telecommunication service.
(m) "Prepaid telecommunication service" (including prepaid mobile telecommunication service) shall mean the
right to access telecommunication services, which must be paid for in advance and which enables the
City of Santa Ana RFP No. 23-165 Page 166 of 196
origination of communications using an access number or authorization code, whether manually or
electronically dialed.
(n) "Private telecommunication service" means a telecommunication service that entitles the customer to
exclusive or priority use of a communications channel or group of channels between or among termination
points, regardless of the manner in which such channel or channels are connected, and includes switching
capacity, extension lines, stations, and any other associated services that are provided in connection with the
use of such channel or channels. A communications channel is a physical or virtual path of communications
over which signals are transmitted between or among customer channel termination points (i. e., the
location where the customer either inputs or receives the communications).
(o) "Service address" means the residential street address or the business street address of the service user. For
a telecommunication service user, "service address" means either:
(1) The location of the service user's telecommunication equipment from which the telecommunication
originates or terminates, regardless of where the telecommunication is billed or paid; or
(2) If the location in subsection (1) of this definition is unknown (e.g., mobile telecommunications service
or VoIP service), the service address means the location of the service user's place of primary use.
(3) For prepaid telecommunication service, "service address" means the point of sale of the services
where the point of sale is within the city, or if unknown, the known address of the service user (e.g.,
billing address or location associated with the service number), which locations shall be presumed to
be the place of primary use.
(p) "Service supplier" shall mean any entity or person, including the city that provides, sells, or resells a utility
service to a user of such service within the city.
(q) "Service user" shall mean a person required to pay a tax imposed under the provisions of this article.
(r) "State" shall mean the State of California.
(s) "Streamlined sales and use tax agreement" means the multi -state agreement commonly known and referred
to as the streamlined sales and use tax agreement, as it is amended from time to time.
(t) "Tax administrator" shall mean the finance director, or his or her designee.
(u) "Telecommunications service" means the transmission, conveyance, or routing of voice, data, audio, video,
or any other information or signals to a point, or between or among points, whatever the technology used.
The term "telecommunications services" includes such transmission, conveyance, or routing in which
computer processing applications are used to act on the form, code or protocol of the content for purposes
of transmission, conveyance or routing without regard to whether such services are referred to as voice over
internet protocol (VolP) services or are classified by the Federal Communications Commission as enhanced or
value added, and includes video and/or data services that are functionally integrated with
"telecommunication services." "Telecommunications services" include, but are not limited to the following
services, regardless of the manner or basis on which such services are calculated or billed: ancillary
telecommunication services; intrastate, interstate, and international telecommunication services; mobile
telecommunications service; prepaid telecommunication service; post-paid telecommunication service;
private telecommunication service; paging service; 800 service (or any other toll -free numbers designated by
the Federal Communications Commission); 900 service (or any other similar numbers designated by the
Federal Communications Commission for services whereby subscribers who call in to pre-recorded or live
service). The term "telecommunication services" shall include, but is not limited to, charges for: connection,
reconnection, termination, movement, or change of telecommunication services; late payment fees; detailed
billing; central office and custom calling features (including but not limited to call waiting, call forwarding,
caller identification and three-way calling); voice mail and other messaging services; directory assistance;
access and line charges; universal service charges; regulatory or administrative fees, charges or surcharges,
City of Santa Ana RFP No. 23-165 Page 167 of 196
including charges or surcharges for programs imposed by state or federal law (whether such charges or
surcharges are imposed on the service supplier or the customer); local number portability charges; and text
and instant messaging. "Telecommunication services" shall not include digital downloads that are not
"ancillary telecommunication services," such as music, ringtones, games, and similar digital products.
(v) "VoIP (Voice over Internet Protocol)" means the digital process of making and receiving real-time voice
transmissions over any Internet Protocol network.
(w) "800 Service" means a "telecommunications service" that allows a caller to dial a toll -free number without
incurring a charge for the call. The service is typically marketed under the name "800," "855," "866," "877,"
and "888" toll -free calling, and any subsequent numbers designated by the Federal Communications
Commission.
(x) "900 Service" means an inbound toll "telecommunications service" purchased by a subscriber that allows the
subscriber's customers to call in to the subscriber's prerecorded announcement or live service. "900 service"
does not include the charge for: collection services provided by the seller of the "telecommunications
services" to the subscriber, or service or product sold by the subscriber to the subscriber's customer. The
service is typically marketed under the name "900" service, and any subsequent numbers designated by the
Federal Communications Commission.
(Ord. No. NS-2436, § 2, 8-4-00; Ord. No. 2721, § 2, 8-7-06; Ord. No. NS-2723, § 2, 8-7-06; Ord. No. NS-2860, § 3, 12-
9-14 )
Sec. 35-154. Constitutional exemptions.
(a) Nothing in this code shall be construed as imposing a tax upon:
(1) Any person or service when imposition of such tax upon that person or service would be in violation of
a federal or state statute, the Constitution of the United States or that of the State of California; and
(2) The city.
(b) Any service user that is exempt from the taxes imposed by this code pursuant to subsection (a) shall file an
application with the tax administrator for an exemption; provided, however, this requirement shall not apply
to a service user that is a state or federal agency or subdivision with a commonly recognized name, or is a
service user of telephone communication services that has received a federal excise tax exemption
certificate for such service. Said application shall be made upon a form approved by the tax administrator
and shall state those facts, declared under penalty of perjury, which qualify the applicant for an exemption,
and shall include the names of all utility service providers serving that service user. If deemed exempt by the
tax administrator, such service user shall give the tax administrator timely written notice of any change in
utility service providers so that the tax administrator can properly notify the new utility service provider of
the service user's tax exempt status. A service user that fails to comply with this section shall not be entitled
to a refund of utility users taxes collected and remitted to the tax administrator from such service user as a
result of such non-compliance. Upon request of the tax administrator, a service supplier or non -utility service
supplier, or its billing agent, shall provide a list of the names and addresses of those customers which,
according to its billing records, are deemed exempt from the utility users tax. With respect to a service user
of telephone communication service, a service supplier of such telephone communication services doing
business in the city shall, upon the request of the tax administrator, provide a copy of the federal exemption
for each exempt customer within the city that is served by such service supplier.
(Ord. No. NS-2436, § 2, 8-4-00)
City of Santa Ana RFP No. 23-165 Page 168 of 196
Sec. 35-155. Telephone users tax.
(a) There is hereby imposed a tax upon every person in the city using telecommunication services. The tax
imposed by this Section shall be at the rate of five and one-half (5%) percent of the charges made for such
services and shall be collected from the service user by the telecommunication services supplier or its billing
agent. There is a rebuttable presumption that telecommunication services, which are billed to a billing or
service address in the city, are used, in whole or in part, within the city's boundaries, and such services are
subject to taxation under this section. There is also a rebuttable presumption that prepaid
telecommunication services sold within the city are used, in whole or in part, within the city and are
therefore subject to taxation under this section. If the billing address of the service user is different from the
service address, the service address of the service user shall be used for purposes of imposing the tax. As
used in this section, the term "charges" shall include the value of any other services, credits, property of
every kind or nature, or other consideration provided by the service user in exchange for the
telecommunication services.
(b) "Mobile telecommunications service" shall be sourced in accordance with the sourcing rules set forth in the
Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124). The tax administrator may issue and
disseminate to telecommunication service suppliers, which are subject to the tax collection requirements of
this article, sourcing rules for the taxation of other telecommunication services, including but not limited to
post-paid telecommunication services, prepaid telecommunication services, VoIP, and private
communication services, provided that such rules are based upon custom and common practice that further
administrative efficiency and minimize multi jurisdictional taxation (e.g., streamlined sales and use tax
agreement).
(c) The tax administrator may issue and disseminate to telecommunication service suppliers, which are subject
to the tax collection requirements of this article, an administrative ruling identifying those
telecommunication services, or charges therefore, that are subject to or not subject to the tax of subsection
(a) above.
(d) To prevent actual multi jurisdictional taxation of telecommunication services subject to tax under this
section, any service user, upon proof to the tax administrator that the service user has previously paid the
same tax in another state or city on such telecommunication services, shall be allowed a credit against the
tax imposed to the extent of the amount of such tax legally imposed in such other state or city; provided,
however, the amount of credit shall not exceed the tax owed to the city under this section.
(e) The tax on telecommunication services imposed by this section shall be collected from the service user by
the service supplier. The amount of tax collected in one (1) month shall be remitted to the tax administrator,
and must be received by the tax administrator on or before the 20th day of the following month.
(Ord. No. NS-2436, § 2, 8-4-00; Ord. No. 2721, § 3, 8-7-06; Ord. No. NS-2723, § 3, 8-7-06; Ord. No. NS-2860, § 4, 12-
9-14 )
Sec. 35-155.1. Bundling taxable items.
If any nontaxable charges are combined with and not separately stated from taxable service charges on the
customer bill or invoice of a service supplier, the combined charge is subject to tax unless the service supplier
identifies, by reasonable and verifiable standards, the portions of the combined charge that are nontaxable and
taxable through the service supplier's books and records kept in the regular course of business, and in accordance
with generally accepted accounting principles, and not created and maintained for tax purposes. If the service
supplier offers a combination of taxable and non-taxable services, and the charges are separately stated, then for
taxation purposes, the values assigned the taxable and non-taxable services shall be based on its books and
records kept in the regular course of business and in accordance with generally accepted accounting principles,
City of Santa Ana RFP No. 23-165 Page 169 of 196
and not created and maintained for tax purposes. The service supplier has the burden of proving the proper
valuation and apportionment of taxable and non-taxable charges.
( Ord. No. NS-2860, § 5, 12-9-14 )
Sec. 35-155.2. Substantial nexus/minimum contact.
For purposes of imposing a tax or establishing a duty to collect and remit a tax under this article, "substantial
nexus" and "minimum contacts" shall be construed broadly in favor of the imposition, collection and/or remittance
of the utility users' tax to the fullest extent permitted by state and federal law, and as it may change from time to
time by judicial interpretation or by statutory enactment. Any telecommunication service (including VoIP) used by
a person with a service address in the city, which service is capable of terminating a call to another person on the
general telephone network, shall be subject to a rebuttable presumption that "substantial nexus/minimum
contacts" exists for purposes of imposing a tax, or establishing a duty to collect and remit a tax, under this article.
A service supplier shall be deemed to have sufficient activity in the city for tax collection and remittance purposes
if its activities include, but are not limited to, any of the following: maintains or has within the city, directly or
through an agent, affiliate, or subsidiary, a place of business of any nature; solicits business in the city by
employees, independent contractors, resellers, agents or other representatives; solicits business in the city on a
continuous, regular, seasonal or systematic basis by means of advertising that is broadcast or relayed from a
transmitter with the city or distributed from a location with the city; or advertises in newspapers or other
periodicals printed and published within the city or through materials distributed in the city by means other than
the United States mail; or if there are activities performed in the city on behalf of the service supplier that are
significantly associated with the service supplier's ability to establish and maintain a market in the city for the
provision of utility services that are subject to a tax under this article (e.g., an affiliated person engaging in
activities in the city that inure to the benefit of the service supplier in its development or maintenance of a market
for its services in the city).
( Ord. No. NS-2860, § 6, 12-9-14 )
Sec. 35-156. Electricity users tax.
(a) There is hereby imposed a tax upon every person in the City of Santa Ana using electricity in the city. The tax
imposed by this section shall be at the rate of six (6) percent of the charges made for such electricity, and for
any supplemental services or other associated activities directly related to and/or necessary for the provision
of electricity to the service user, which are provided by a service supplier or non -utility service supplier to a
service user. The tax shall be collected from the service user by the service supplier or non -utility service
supplier, or its billing agent.
(b) As used in this section, the term "charges" shall apply to all services, components and items that are: i)
necessary or common to the receipt, use and enjoyment of electric service; or, ii) historically have been,
included in a single or bundled rate for electric service by a local distribution company to a class of retail
customers. The term "charges" shall include but is not limited to, the following charges:
(1) Energy charges;
(2) Distribution or transmission charges;
(3) Metering charges;
(4) Stand-by, reserves, firming, ramping, voltage support, regulation, emergency, or other similar
minimum charges for services;
City of Santa Ana RFP No. 23-165 Page 170 of 196
(5) Customer charges, late charges, service establishment or reestablishment charges, demand charges,
fuel or other cost adjustments, power exchange charges, independent system operator (ISO) charges,
stranded investment or competitive transition charges (CTC), public purpose program charges, nuclear
decommissioning charges, trust transfer amounts (bond financing charges), franchise fees, franchise
surcharges, annual and monthly charges, and other charges, fees and surcharges which are necessary
to or common for the receipt, use and enjoyment of electric service; and
(6) Charges, fees or surcharges for electricity services or programs, which are mandated by the California
Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such
charges, fees or surcharges appear on a bundled or line item basis on the customer billing.
(c) As used in this section, the term "charges" shall also include the value of any other services, credits, property
of every kind or nature, or other consideration provided by the service user in exchange for the electricity or
services related to the provision of such electricity. If a non-taxable service and a taxable service are billed
together under a single charge, the entire charge shall be deemed taxable unless the service supplier can
reasonably identify charges not subject to the utility users tax based upon its books and records that are kept
in the regular course of business, which shall be consistent with generally accepted accounting principles.
(d) The tax administrator, from time to time, may survey the electric service suppliers to identify the various
unbundled billing components of electrical retail service that they commonly provide to residential and
commercial/industrial customers in the city, and the charges therefor, including those items that are
mandated by state or federal regulatory agencies as a condition of providing such electric service. The tax
administrator, thereafter, may issue and disseminate to such electric service suppliers an administrative
ruling identifying those components and items which are: i) necessary or common to the receipt, use and
enjoyment of electric service; or, ii) currently, or historically have been, included in a single or bundled rate
for electric service by a local distribution company to a class of retail customers. Unbundled charges for such
components and items shall be subject to the tax of subsection (a) above.
(e) As used in this section, the term "using electricity" shall not be construed to include the mere receiving of
such electricity by an electric public utility or governmental agency at a point within the city for resale; or the
use of such electricity in the production or distribution of water by a public utility or a governmental agency.
(f) The tax on electricity provided by a non -utility service supplier not under the jurisdiction of this code shall be
collected and remitted in the manner set forth in section 35-158 of this code. All other taxes on charges for
electricity imposed in this section shall be collected from the service user by the electric service supplier or
its billing agent. The amount of tax collected in one (1) month shall be remitted to the tax administrator on
or before the twentieth (20th) day of the following month in accordance with section 35-163 of this code; or,
at the option of the person required to collect and/or remit the tax, such person shall remit an estimated
amount of tax measured by the tax billed in the previous month or upon the payment pattern of the service
user on or before the twentieth (20th) day of the following month in accordance with section 35-163 of this
code.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-156.1. Reduction in rate.
The electricity users tax imposed under section 35-156 shall be reduced from six (6) percent to five and one-
half (5%) percent.
( Ord. No. NS-2860, § 7, 12-9-14 )
City of Santa Ana RFP No. 23-165 Page 171 of 196
Sec. 35-157. Gas user tax.
(a) There is hereby imposed a tax upon every person in the City of Santa Ana, other than a gas corporation or
electrical corporation, using gas in the city which is delivered through a pipeline distribution system. The tax
imposed by this section shall be at a rate of six (6) percent of the charges made for such gas, including all
services related to the storage, transportation and delivery of such gas, and shall be collected from the
service user by the service supplier or non -utility service supplier, or its billing agent.
(b) As used in this section, the term "charges" shall apply to all services, components and items for gas service
that are: i) necessary or common to the receipt, use and enjoyment of gas service; or, ii) currently, or
historically have been, included in a single or bundled rate for gas service by a local distribution company to a
class of retail customers. The term "charges" shall include, but is not limited to, the following charges:
(1) The commodity charges for purchased gas, or the cost of gas owned by the service user (including the
actual costs attributed to drilling, production, lifting, storage, gathering, trunkline, pipeline, and other
operating costs associated with the production and delivery of such gas), which is delivered through a
gas pipeline distribution system;
(2) Gas transportation charges (including interstate charges to the extent not included in commodity
charges);
(3) Storage charges; provided, however, that the service provider shall not be required to apply the tax to
any charges for gas storage services when the service provider cannot, as a practical matter, determine
the jurisdiction where such stored gas is ultimately used; but it shall be the obligation of the service
user to self -collect the amount of tax not applied to any charge for gas storage by the service provider
and to remit the tax to the appropriate jurisdiction; and
(4) Capacity or demand charges, late charges, service establishment or reestablishment charges, transition
charges, customer charges, minimum charges, annual and monthly charges, and any other charges
which are necessary or common to the receipt, use and enjoyment of gas service, and
(5) Charges, fees or surcharges for gas services or programs, which are mandated by the California Public
Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees
or surcharges appear on a bundled or line item basis on the customer billing.
(c) As used in this section, the term "charges" shall include the value of any other services, credits, property of
every kind or nature, or other consideration provided by the service user in exchange for the gas or services
related to the delivery of such gas. If a non-taxable service and a taxable service are billed together under a
single charge, the entire charge shall be deemed taxable unless the service supplier can reasonably identify
charges not subject to the utility users tax based upon its books and records that are kept in the regular
course of business, which shall be consistent with generally accepted accounting principles.
(d) The tax administrator, from time to time, may survey the gas service suppliers to identify the various
unbundled billing components of gas retail service that they commonly provide to residential and
commercial/industrial customers in the city, and the charges therefor, including those items that are
mandated by state or federal regulatory agencies as a condition of providing such gas service. The tax
administrator, thereafter, may issue and disseminate to such gas service suppliers an administrative ruling
identifying those components and items which are: i) necessary or common to the receipt, use and
enjoyment of gas service; or, ii) currently, or historically have been, included in a single or bundled rate for
gas service by a local distribution company to a class of retail customers. Unbundled charges for such
components and items shall be subject to the tax of subsection (a) above.
(e) There shall be excluded from the base on which the tax imposed in this section is computed:
(1) Charges made for gas which is to be resold and delivered through a pipeline distribution system;
City of Santa Ana RFP No. 23-165 Page 172 of 196
(2) Charges made for gas sold for use in the generation of electricity or for the production or distribution
of water by a public utility or governmental agency; and
(3) Charges made by a gas public utility for gas used and consumed in the conduct of the business of gas
public utilities.
(f) The tax that is calculated on charges for gas provided by self -production or by a non -utility service supplier
not under the jurisdiction of this code shall be collected and remitted in the manner set forth in section 35-
158 of this code. All other taxes imposed in this section shall be collected from the service user by the gas
service supplier or its billing agent. The amount of tax collected in one (1) month shall be remitted to the tax
administrator on or before the twentieth (20th) day of the following month in accordance with section 35-
163 of this code; or, at the option of the person required to collect or remit the tax, such person shall remit
an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern
of the service user on or before the twentieth (20th) day of the following month in accordance with section
35-163 of this code.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-157.1. Reduction in rate.
The gas user tax imposed under section 35-157 shall be reduced from six (6) percent to five and one-half (5%)
percent.
( Ord. No. NS-2860, § 8, 12-9-14 )
Sec. 35-158. Collection of tax from service users receiving direct purchase of gas or electricity.
(a) Any service user subject to the tax imposed by section 35-156 or by section 35-157 of this Code, which
produces gas or electricity for self -use, or which receives gas or electricity, including any related
supplemental services, directly from a non -utility service supplier not under the jurisdiction of this ordinance,
or which, for any other reason, is not having the full tax collected and remitted by its service supplier, a non -
utility service supplier, or its billing agent on the use of gas or electricity, including any related supplemental
services, in the city, shall report said fact to the tax administrator and shall remit the tax due directly to the
tax administrator within thirty (30) days of such use. In lieu of paying said actual tax, the service user may, at
its option, remit to the tax administrator within thirty (30) days of such use an estimated amount of tax
measured by the tax billed in the previous month, or upon the payment pattern of similar customers of the
service supplier using similar amounts of gas or electricity, provided that the service user shall submit an
adjusted payment or request for credit, as appropriate, within sixty (60) days following each calendar
quarter. The credit, if approved by the tax administrator, may be applied against any subsequent tax bill that
becomes due.
(b) The tax administrator may require said service user to identify its non -utility service supplier and provide,
subject to audit, invoices, books of account, or other satisfactory evidence documenting the quantity of gas
or electricity used, including any related supplemental services, and the cost or price thereof. If the service
user is unable to provide such satisfactory evidence, or, if the administrative cost of calculating the tax in the
opinion of the tax administrator is excessive, the tax administrator may determine the tax by applying the tax
rate to the equivalent charges the service user would have incurred if the gas or electricity used, including
any related supplemental services, had been provided by the service supplier that is the primary provider of
gas or electricity within the city. Rate schedules for this purpose shall be available from the city.
(Ord. No. NS-2436, § 2, 8-4-00)
City of Santa Ana RFP No. 23-165 Page 173 of 196
Sec. 35-159. Water user tax.
(a) There is hereby imposed a tax upon every person in the City of Santa Ana using water in the city which is
delivered through a pipeline distribution system. The tax imposed by this section shall be at the rate of six (6)
percent of the charges made for such water and shall be collected from the service user by the service
supplier, or its billing agent.
(b) As used in this section, the term "charges" shall apply to all services, components and items that are: i)
necessary or common to the receipt, use and enjoyment of water service; or, ii) currently, or historically have
been, included in a single or bundled rate for water service by a local distribution company to a class of retail
customers. The term "charges" shall include, but is not limited to, the following charges:
(1) Water commodity charges (potable and non -potable);
(2) Distribution or transmission charges;
(3) Metering charges;
(4) Customer charges, late charges, service establishment or reestablishment charges, franchise fees,
franchise surcharges, annual and monthly charges, and other charges, fees and surcharges which are
necessary for or common to the receipt, use and enjoyment of water service; and
(5) Charges, fees, or surcharges for water services or programs, which are mandated by a water district or
a state or federal agency, whether or not such charges, fees, or surcharges appear on a bundled or line
item basis on the customer billing.
(c) As used in this section, the term "charges" shall include the value of any other services, credits, property of
every kind or nature, or other consideration provided by the service user in exchange for the water services.
If a non-taxable service and a taxable service are billed together under a single charge, the entire charge shall
be deemed taxable unless the service supplier can reasonably identify charges not subject to the utility users
tax based upon its books and records that are kept in the regular course of business, which shall be
consistent with generally accepted accounting principles.
(d) There shall be excluded from the base on which the tax imposed in this section is computed charges made
for water which is to be resold and delivered through a pipeline distribution system.
(e) The tax on water service imposed by this section shall be collected from the service user by the service
supplier or its billing agent. The amount of tax collected in one (1) month shall be remitted to the tax
administrator on or before the twentieth (20th) day of the following month in accordance with section 35-
163 of this Code.
(f) Notwithstanding subsection (e), above, the city, when acting as the service supplier or billing agent, may
remit the amount of tax collected to the tax administrator in accordance with any administrative rules
established by the tax administrator.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-159.1. Reduction in rate.
The water user tax imposed under section 35-159 shall be reduced from six (6) percent to five and one-half
(5%) percent.
( Ord. No. NS-2860, § 9, 12-9-14 )
City of Santa Ana RFP No. 23-165 Page 174 of 196
Sec. 35-160. Decisions on amounts imposed.
If any tax, penalty, or interest charge imposed by this code is for any reason held to be discriminatory or
invalid in amount, by the decision of any court of competent jurisdiction, such decision shall not affect the validity
of a lesser amount imposed by the tax administrator with the concurrence of the city attorney. The city council
hereby declares that it would have imposed a valid utility users tax, penalty, or interest charge of the maximum
nondiscriminatory amount permitted by law, up to but not exceeding, the amount provided under this code on the
person or persons in question, irrespective of the fact that any one (1) or more of the taxes, penalties, or interest
charges imposed herein may be declared discriminatory or invalid in amount.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-161. Duty to collect; procedures.
The duty of service suppliers to collect and remit the taxes imposed by this code shall be performed as
follows:
(a) The tax shall be collected insofar as practicable at the same time as and along with the charges made in
accordance with the regular billing practice of the service supplier.
(b) In those cases where a service user has notified the service supplier of refusal to pay the tax imposed
on said charges, section 35-167(b) of this code shall apply.
(c) The duty to collect tax from a service user shall commence with the beginning of the first full regular
billing period applicable to that person which starts on or after the operative date of this code. Where
a person receives more than one (1) billing for different periods, the duty to collect shall arise
separately for each billing period.
(d) Whenever a service supplier negligently fails in its duty to determine and collect the required tax from
a service user, any other amount collected by the service supplier from the service user shall then be
subject to a constructive trust in the favor of the city for the full amount of the uncollected tax.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-162. Duty to remit —Procedures.
(a) Each person required by this code to remit a tax shall file a return with the tax administrator on forms
approved by the tax administrator on or before the due date in accordance with section 35-163 of this code.
The full amount of the tax owed shall be included with the return and filed with the tax administrator. The
tax administrator is authorized to require such additional information as he or she deems necessary to
determine if the tax is being levied and collected in accordance with this code. Returns are due immediately
upon cessation of business for any reason. Pursuant to state Revenue and Taxation Code Section 7284.6 as
amended from time to time, the tax administrator, and his or her agents, shall maintain such filing returns as
confidential information not subject to the Public Records Act.
(b) If a service supplier uses a billing agent or billing aggregator to bill, collect, and/or remit the tax, the service
supplier shall: i) provide to the tax administrator the name, address and telephone number of each billing
agent and billing aggregator currently authorized by the service supplier to bill, collect, and/or remit the tax
to the city; and, ii) upon request of the tax administrator, deliver, or effect the delivery of, any information or
records in the possession of such billing agent or billing aggregator that, in the opinion of the tax
administrator, is necessary to verify the proper application, calculation, collection and/or remittance of such
tax to the city.
City of Santa Ana RFP No. 23-165 Page 175 of 196
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-163. Timely filing and remittance.
Returns and taxes may be filed and remitted by the following means: i) in person, ii) by United States Mail, iii)
by express carrier, and iv) by electronic means. Returns filed and/or taxes remitted monthly, and actually received
by the tax administrator on or before the due dates provided in this code shall be deemed to be timely filed and/or
remitted; otherwise, the taxes are delinquent and subject to the penalties imposed pursuant to section 35-164.
Provided, however, that when the last day upon which a return may be filed or a tax remitted falls on a Saturday,
Sunday, or city, state, or national holiday, a timely filing and remittance may be made upon the first following
working day.
A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging
monies between financial accounts, made by a service supplier in satisfaction of its obligations under this code
shall be considered timely if the transfer is initiated on or before the due dates provided in this code, and settles
into the city's account on the following business day.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-164. Penalty and interest; delinquencies and deficiencies in collection and remittance.
(a) Taxes collected but not remitted by due date —delinquencies in remittance. If taxes collected by a service
supplier from a service user, or self collected by a service user subject to section 35-158 of this code are not
remitted to the tax administrator on or before the due dates provided in this code, such taxes shall be
delinquent. The tax administrator shall attach a penalty for such delinquencies in remittance at the rate of
fifteen (15) percent of the total delinquent amount due.
(b) Taxes not collected —delinquencies in collection. If a service supplier required to collect any tax hereunder
fails to collect such tax, or, if a service user required to self -collect and remit the tax pursuant to section 35-
158 of this code, fails to self collect the tax, the tax administrator shall attach a penalty for such
delinquencies in collection at the rate of fifteen (15) percent of the total tax amount that is determined to be
due.
(c) Taxes not fully collected —deficiencies in collection. If a service supplier required to collect and remit any tax
hereunder fails to collect the full amount of the tax, or, if a service user subject to section 35-158 of this code
fails to properly self -collect the full amount of the tax, the tax administrator shall attach a penalty for such
deficiencies in collection at the rate of fifteen (15) percent of the total tax amount that is determined to be
due.
(d) Taxes not fully remitted —deficiencies in remittance. If a service supplier required to collect and remit any tax
hereunder fails to remit the full amount of the tax collected, or, if a service user subject to section 35-158 of
this code fails to properly remit the full amount of the tax self -collected, the tax administrator shall attach a
penalty for such deficiencies in remittance at the rate of fifteen (15) percent of the total tax amount that is
determined to be due.
(e) Fraud or gross negligence —additional penalties. If the tax administrator determines that the nonpayment of
any delinquency or deficiency due by any service supplier, or service user required to self -collect and remit
the tax pursuant to section 35-158 of this code, is due to fraud or gross negligence, the tax administrator
shall have the power to impose additional penalties upon such persons at the rate of fifteen (15) percent of
the amount of the remittance due.
(f) Penalties —maximum amount. The cumulative amount of all applicable penalties imposed under this code
shall not exceed an amount equal to the amount of the tax originally owed.
City of Santa Ana RFP No. 23-165 Page 176 of 196
(g) Interest —due from date of delinquency. Any person subject to any penalty imposed hereinabove in this
section, shall also pay interest at the rate of three-quarters of one percent (%) per month, or any fraction
thereof, on the amount subject to penalty, from the date on which the remittance of such amount first
became delinquent or deficient until paid.
(h) Penalties and interest. All penalties and all interest imposed under this code shall be subject to the same
actions to collect and the same provisions for enforcement as the tax imposed by this code.
(i) Penalties, interest, delinquencies and deficiencies owed. All penalties and interest imposed under this code
together with all delinquencies and deficiencies owed shall be due and payable as of the date of notification
which shall be given in the same manner as administrative assessments in accordance with section 35-167 of
this code. Any person assessed any amount as delinquency, or deficiency, or penalty, or interest shall have
the same right of appeal as provided in the case of administrative assessments in accordance with section
35-167 of this code and shall be governed by the same provisions as set forth therein.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-165. Actions to collect.
Any tax, penalty, or interest required to be paid by a service user under the provisions of this code shall be
deemed a debt owed by the service user to the city. Any such tax collected from a service user together with any
penalties or interest due thereon which have not been remitted to the tax administrator shall be deemed a debt
owed to the city by the service supplier required to collect and remit. The amount of any tax required to be
collected from a service user by a service supplier which is held in constructive trust in the favor of the city shall be
a debt owed by the service supplier to the city. Any person owing money to the city under the provisions of this
code shall be liable to an action brought in the name of the city for the recovery of such amount plus related costs
incurred by the city.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-166. Tax administrator, ex officio collector of utility users taxes; additional powers
and duties of tax administrator, etc.
(a) The tax administrator shall be ex officio utility users tax collector.
(b) The tax administrator shall have the power and authority to enforce all of the provisions of this code.
(c) The tax administrator may adopt administrative rules, regulations, and guidelines, or make administrative
agreements consistent with the intent of the provisions of this code for the purpose of administering the
provisions herein regarding the payment, collection and remittance of said taxes.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-167. Assessment; administrative remedy.
The tax administrator may make an assessment for taxes not collected and/or not remitted or paid by any
person required to collect and/or remit or pay.
(a) Service supplier or service user failure to collect and/or remit tax. If any service supplier, or any
service user subject to section 35-158 of this code, (hereinafter "service supplier" in this subsection)
required to collect and/or remit the tax imposed by this code shall fail or refuse to collect said tax or to
make, within the time provided in this code, any report and remittance of said tax or any portion
City of Santa Ana RFP No. 23-165 Page 177 of 196
thereof required by this code, the tax administrator shall make a determination of the tax due (tax,
interest and penalties hereinafter "amount assessed" in this subsection). The tax administrator shall
give a written notice of the amount assessed by personal service or by depositing it in the United States
mail, addressed to the service supplier at the service supplier's last known address. The service supplier
may, within ten (10) days after the serving or mailing of such notice, make application in writing to the
tax administrator for a hearing on the amount assessed in accordance with section 35-173 of this code.
If application by the service supplier for a hearing is not made within the time prescribed, the amount
assessed shall become final and immediately due and payable.
(b) Service user —failure to pay tax. Whenever the tax administrator determines that a service user has
deliberately withheld the amount of the tax owed by him or her from the amounts remitted to a
service supplier required to collect the tax, or that a service user has failed to pay the amount of the
tax to such service supplier for a period of two (2) or more billing periods, or whenever the tax
administrator deems it in the best interest of the city, he or she may relieve such service supplier of the
obligation to collect taxes due under this code from such service users for specified billing periods. The
service supplier shall provide the city with the names, account numbers, billing and service addresses,
and other required information of such non-paying service users together with the amounts owed
under the provisions of this code and the specified billing periods for which they are owed. The tax
administrator shall give written notice to the non-paying service user that he or she has assumed
responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The
notice shall be served on the service user by personal service or by deposit of the notice in the United
States mail, addressed to the service user at the address to which billing was made by the person
required to collect the tax; or, should the service user have changed his address, to his last known
address. If a service user fails to remit the tax to the tax administrator within fifteen (15) days from the
date of the service of the notice, which shall be the date of mailing if service is not accomplished in
person, a penalty of twenty-five (25) percent of the amount of the tax set forth in the notice shall be
imposed, but not less than five dollars ($5.00), along with interest at the rate of three-quarters of one
percent (%) per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from
the date on which the remittance first became delinquent until paid.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-168. Records.
(a) It shall be the duty of every person required to collect and/or remit to the city any tax imposed by this code
to keep and preserve, for a period of three (3) years, all records as may be necessary to determine the
amount of such tax as he may have been liable for the collection of and remittance to the tax administrator,
which records the tax administrator shall have the right to inspect at all reasonable times. The city may issue
an administrative subpoena to compel a person to deliver, to the tax administrator, copies of all records
deemed necessary by the tax administrator to establish compliance with this code, including the delivery of
records in a common electronic format on readily available media if such records are kept electronically by
the person in the usual and ordinary course of business. The tax administrator is authorized to execute a
non -disclosure agreement approved by the city attorney to protect the confidentiality of customer
information pursuant to state Revenue and Taxation Code Sections 7284.6 and 7284.7, as amended from
time to time.
(b) The tax administrator may request from any person providing transportation or distribution services of gas
or electricity to service users within the city, a list of the names, billing and service addresses, quantities of
gas or electricity delivered, and other pertinent information, of its transportation customers within the city
pursuant to section 6354(e) of the state Public Utilities Code, as amended from time to time.
City of Santa Ana RFP No. 23-165 Page 178 of 196
(c) If any person subject to record -keeping under this section unreasonably denies the tax administrator, or any
designated agent of the tax administrator, access to such records, or fails to produce the information
requested in an administrative subpoena within the time specified, the tax administrator may impose a
penalty of five hundred dollars ($500.00) on such person for each day following the initial date that the
person refuses to provide such access. This penalty shall be in addition to any other penalty imposed by this
code.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-169. Refunds.
(a) Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or
illegally collected or received by the tax administrator under this code, it may be refunded as provided in this
section. No refund will be considered by the tax administrator for a period in excess of twelve (12) months
prior to the date application is received.
(b) The tax administrator may refund any tax that has been overpaid, paid more than once, or has been
erroneously or illegally collected or received by the tax administrator under this code, provided that no
refund shall be paid under the provisions of this section unless the claimant or his or her guardian,
conservator, executor or administrator has submitted a written claim to the tax administrator within twelve
(12) months of the overpayment or erroneous or illegal collection of said tax. Such claim must clearly
establish claimant's right to the refund by written records showing entitlement thereto. Nothing herein shall
permit the filing of a claim on behalf of a class or group of taxpayers.
(c) The submission of a written claim, which is acted upon by the city, shall be a prerequisite to a suit thereon as
provided in accordance with state Government Code Section 935, as amended from time to time. The city
shall act upon the refund claim within the time period set forth in state Government Code Section 912.4, as
amended from time to time. If the city fails or refuses to act on a refund claim within the time prescribed by
state Government Section 912.4, the claim shall be deemed to have been rejected by the city on the last day
of the period within which the city was required to act upon the claim as provided in state Government Code
Section 912.4.
(d) Notwithstanding subsection (b) above, a service supplier shall be entitled to take any overpayment as a
credit against an underpayment whenever such overpayment has been received by the city within the three
(3) years next preceding a notice of tax deficiency or assessment by the tax administrator, or during any year
for which the service supplier, at the request of the tax administrator, has executed a waiver of the defense
of the statute of limitations with regard to any claim the city may have for a utility users tax. Under no
circumstances shall an overpayment taken as a credit against an underpayment pursuant to this subsection
qualify a service supplier for a refund to which it would not otherwise be entitled under the 12-month
written claim requirement of this section.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-170. Low income household exemption.
(a) The utility users tax imposed by this code shall not apply to any service user who uses telephone, electric, gas
or water services in or upon any premises occupied by such service user, provided the combined gross
income of all members of the household in which such user resided was less than the low income household
exemption level for the calendar year prior to the fiscal year (July 1 through June 30) for which the
exemption provided in this section is applied for. The low income household exemption level shall be
established by resolution of the city council.
City of Santa Ana RFP No. 23-165 Page 179 of 196
The exemption granted by this section shall not eliminate the duty of the service supplier to collect taxes
from such exempt individual or the duty of such exempt individual to pay such taxes to the service supplier, unless
an exemption is applied for by the service user and granted in accordance with the provisions of subsection (b)
hereof.
(b) Any service user exempt from the taxes imposed by this code because of the provisions of subsection (a)
above may file an application with the tax administrator for an exemption. Such application shall be made
upon forms supplied by the tax administrator and shall recite facts under oath which qualify the applicant for
an exemption. The tax administrator shall review all such applications and certify as exempt those applicants
determined to qualify therefor 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, the account
number, and such other information as may be necessary for the service supplier to remove the exempt
service user from its tax billing procedure. Upon receipt of such notice, the service supplier shall not be
required to continue to bill any further tax imposed by this code from such exempt service user until further
notice by the tax administrator is given. The service supplier shall eliminate such exempt service user from its
tax billing procedure upon receipt of such notice from the tax administrator, no later than sixty (60) days
after receipt of such notice from the tax administrator.
(c) All exemptions shall be renewed annually by the exempt service user during the renewal period of April 1
through April 30. The tax administrator shall notify all service suppliers by May 31 of exempt service users
who did not renew during the annual renewal period. Each service supplier shall include the service users
specified in such notice in its tax billing procedure no later than sixty (60) days after receipt of such notice
from the tax administrator. Exemptions shall automatically terminate with any change in the service address
or residence of the exempt individual; provided such individual may nevertheless apply for a new exemption
with each change of address or residence. Any individual exempt from the tax shall notify the tax
administrator within ten (10) days of any change in fact or circumstance which might disqualify said
individual from receiving such exemption. It shall be a misdemeanor for any person to knowingly receive the
benefits of the exemptions provided by this section when the basis for such exemption either does not exist
or ceases.
(d) Notwithstanding any of the provisions of this subsection, however, any service supplier who determines by
any means that a new or nonexempt 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 immediately notify the tax administrator of such fact and the tax administrator 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 commence collecting the tax from the nonexempt
service user.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-171. Violation; misdemeanor; remedies —Cumulative.
(a) Any person violating any of the provisions of this code shall be guilty of a misdemeanor and shall upon
conviction be punishable thereafter as provided in section 1-8 of the Santa Ana Municipal Code.
(b) The conviction and fine or imprisonment of any person for violation of this code shall not relieve such person
from paying the utility users tax together with any penalty or interest amount due under the terms of this
code, nor shall the payment of any utility users tax, or any penalty, or any interest amount due prevent a civil
action or criminal prosecution for the violation of any of the provisions of this code. All remedies prescribed
hereunder shall be cumulative and the use of one (1) or more remedies by the city shall not bar the use of
any other remedy for the purpose of enforcing the provisions hereof.
(Ord. No. NS-2436, § 2, 8-4-00)
City of Santa Ana RFP No. 23-165 Page 180 of 196
Sec. 35-172. Reserved.
Ord. No. NS-2860, § 10, adopted December 9, 2014, repealed § 35-172 in its entirety. Former § 35-172 pertained
to maximum tax amount payable under the utility users tax, and was derived from Ord. No. NS-2436, § 2,
adopted August 4, 2000.
Sec. 35-173. Right to administrative hearing; appeals.
(a) If any service user or service supplier (hereinafter "applicant" in this subsection) is aggrieved by any decision,
administrative assessment, or administrative ruling of the tax administrator, or with the failure to grant a
refund or exemption as provided for under this code, such applicant may appeal to the tax administrator in
writing for an administrative hearing. If application by the applicant for an administrative hearing is not made
within the time prescribed, the prior decision of the tax administrator shall become final. If such application
is made, the tax administrator shall give at least five (5) days' written notice scheduling a date, time and
place for a hearing. Such notice shall be given through personal service or by depositing it in the United
States mail, addressed to the applicant's last known address. The applicant may appear before the tax
administrator and/or the tax administrator's authorized administrative hearing officer (hereinafter "hearing
officer" in this subsection) and offer evidence appealing the tax administrator's decision. After such hearing
the "hearing officer" shall make a determination and give written notice to the applicant regarding his or her
determination. The determination of the "hearing officer" shall become final and shall render any
subsequent appeal null and void and shall further act as a waiver against future action, unless an appeal is
taken pursuant to Chapter 3 of the Santa Ana Municipal Code.
(b) A timely request for an administrative hearing and attendance is required in accordance with subsection (a)
above shall be a prerequisite for an appeal made pursuant to Chapter 3 of the Santa Ana Municipal Code.
The determination of an applicant's appeal made pursuant to Chapter 3 of the Santa Ana Municipal Code
shall be final.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-174. Nonpayment of tax —Bar to writ of mandate or other legal or equitable process.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or
proceeding in any court against this city or against any officer of the city to prevent or enjoin the collection under
this code of any tax or any amount of tax required to be collected and/or remitted.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-175. Saving clause.
Neither the adoption of this code nor its superseding of any portion of any other code shall in any manner be
construed to affect prosecution for violation of any chapter, article, code, or ordinance prior to the effective date
hereof, nor be construed as a waiver of any tax or any penal provision applicable to any such violation, and all
rights and obligations thereunto appertaining shall continue in full force and effect.
(Ord. No. NS-2436, § 2, 8-4-00)
City of Santa Ana RFP No. 23-165 Page 181 of 196
Sec. 35-176. Severability.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this code or any part thereof
is for any reason held to be unconstitutional, such decision, and the decision not to enforce such, shall not affect
the validity of the remaining portion of this code or any part thereof. The city council hereby declares that it would
have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of
the fact that any one (1) or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be
declared unconstitutional.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-177. Notice of changes to utility users tax code.
If a tax under this code is added, repealed, increased, reduced, or the tax base is changed, the tax
administrator shall follow the notice requirements of state Public Utilities Code Section 799. Prior to the effective
date of the code change, the service supplier shall provide the tax administrator with a copy of any written
procedures describing the information that the service supplier needs to implement the code change. If the service
provider fails to provide such written instructions, the tax administrator, or his or her agent, shall send, by first
class mail, a copy of the code change to all collectors and remitters of the city's utility users taxes according to the
latest payment records of the tax administrator.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-178. Effect of state and federal reference/authorization.
Unless specifically provided otherwise, any reference to a state or federal statute in this article shall mean
such statute as it may be amended from time to time, provided that such reference to a statute herein shall not
include any subsequent amendment thereto, or to any subsequent change of interpretation thereto by a state or
federal agency or court of law with the duty to interpret such law, to the extent that such amendment or change
of interpretation would require voter approval under California law, or to the extent that such change would result
in a tax decrease (as a result of excluding all or a part of a utility service, or charge therefor, from taxation). Only to
the extent voter approval would otherwise be required or a tax decrease would result, the prior version of the
statute (or interpretation) shall remain applicable; for any application or situation that would not require voter
approval or result in a decrease of a tax, provisions of the amended statute (or new interpretation) shall be
applicable to the maximum possible extent.
To the extent that the city's authorization to collect or impose any tax imposed under this article is expanded
or limited as a result of changes in state or federal law, no amendment or modification of this article shall be
required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the
authorization up to the full amount of the tax imposed under this article.
( Ord. No. NS-2860, § 11, 12-9-14 )
Sec. 35-179. No increase in tax percentage or change in methodology without voter approval;
amendment or repeal.
This article of the Santa Ana Municipal Code may be repealed or amended by the city council without a vote
of the people. However, as required by Chapter XIIIC of the California Constitution, voter approval is required for
any amendment provision that would increase the rate of any tax levied pursuant to this article. The people of the
City of Santa Ana affirm that the following actions shall not constitute an increase of the rate of a tax:
City of Santa Ana RFP No. 23-165 Page 182 of 196
(1) The restoration of the rate of the tax to a rate that is no higher than that set by this article, if the city
council has acted to reduce the rate of the tax;
(2) An administrative or legislative action that interprets or clarifies the methodology of the tax, or any
definition applicable to the tax, so long as such interpretation or clarification (even if contrary to some
prior interpretation or clarification) is not inconsistent with the language of this article;
(3) The establishment a class of persons or class of service that is exempt or excepted from the tax or the
discontinuation of any such exemption or exception (other than the discontinuation of an exemption
or exception specifically set forth in this article); or
(4) The collection of the tax imposed by this article, even if the city had, for some period of time, failed to
collect the tax.
( Ord. No. NS-2860, § 12, 12-9-14 )
Sec. 35-180. Remedies cumulative.
All remedies and penalties prescribed by this article or which are available under any other provision of law
or equity, including but not limited to the California False Claims Act (Government Code Section 12650 et seq.) and
the California Unfair Practices Act (Business and Professions Code Section 17070 et seq.), are cumulative. The use
of one (1) or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the
provisions of this article.
( Ord. No. NS-2860, § 13, 12-9-14 )
Sec. 35-181. Interaction with prior tax.
(a) Collection of tax by service providers. Service providers shall begin to collect the tax imposed by this
amended article as soon as feasible after the effective date of this article, but in no event later than
permitted by Section 799 of the California Public Utilities Code.
(b) Satisfaction of tax obligation by service users. Prior to April 1, 2015, any person who pays the tax levied
pursuant to this article, as it existed prior to its amendment as provided herein, with respect to any charge
for a service shall be deemed to have satisfied his or her obligation to pay the tax levied pursuant to this
article as amended herein, with respect to that charge. The intent of this paragraph is to prevent the
imposition of multiple taxes upon a single utility charge during the transition period from the prior Utility
Users' Tax Code to the amended Utility Users' Tax Ordinance (which transition period ends April 1, 2015) and
to permit service providers or other persons with an obligation to remit the tax hereunder, during that
transition period, to satisfy their collection obligations by collecting either tax.
(c) Satisfaction of tax obligation by service users paying the prior maximum utility users tax. Prior to July 1, 2015,
any person who pays the maximum tax amount payable under the utility users tax pursuant to this article, as
it existed prior to its amendment as provided herein, shall be deemed to have satisfied his or her obligation
to pay the tax levied pursuant to this article as amended herein for the period of July 1, 2014 through June
30, 2015.
(d) In the event that a final court order should determine that the election enacting this article (as amended
herein) is invalid for whatever reason, or that any tax imposed under this article (as amended herein) is
invalid in whole or in part, then the taxes imposed under this article, as it existed prior to its amendment as
provided herein, shall automatically continue to apply with respect to any service for which the tax levied
pursuant to this article has been determined to be invalid. Such automatic continuation shall be effective
beginning as of the first date of service (or billing date) for which the tax imposed by this article is not valid.
City of Santa Ana RFP No. 23-165 Page 183 of 196
However, in the event of an invalidation, any tax (other than a tax that is ordered refunded by the court or is
otherwise refunded by the city) paid by a person with respect to a service and calculated pursuant to this
article (as amended herein) shall be deemed to satisfy the tax imposed under this article, as it existed prior
to its amendment as provided herein, on that service, so long as the tax is paid with respect to a service
provided no later than six (6) months subsequent to the date on which the final court order is published.
( Ord. No. NS-2860, § 14, 12-9-14 )
Sec. 35-182. Ratification of prior tax.
The voters of the City of Santa Ana hereby ratify and approve the past collection of the utility users tax as
imposed by Chapter 35, Article VI, of this Code as it existed prior to the effective date of this Ordinance.
( Ord. No. NS-2860, § 15, 12-9-14 )
Secs. 35-183-35-199. Reserved.
City of Santa Ana RFP No. 23-165 Page 184 of 196
(9)
ATTACHMENT A
PROPOSER'S CERTIFICATION, PROPOSAL PRICING
Certification - I certify that I have read, understand and agree to the terms and conditions of this Request
for Proposals. I have examined the Scope of Services (Exhibit 1) and am qualified to provide services
being requested as specified herein. I understand and agree that I am responsible for reporting any
errors, omissions or discrepancies to the City for clarification prior to the submission of my proposal.
PROPOSER'S STATEMENT: I have read, understood and agree to the terms and conditions on all
pages of the Request for Proposals. Upon request, I will transfer and deliver goods or services to the City
in accordance with said terms and conditions.
LEGAL NAME OF COMPANY PHONE AND FAX NUMBERS
BUSINESS ADDRESS
PRINTED NAME OF AUTHORIZED AGENT TITLE
SIGNATURE OF AUTHORIZED AGENT DATE E-MAIL ADDRESS
FEDERAL ID NUMBER (IF APPLICABLE) CONTRACTOR LICENSE NUMBER
(IFAPPLICABLE)
CITY OF SANTA ANA BUSINESS LICENSE NUMBER
(PLEASE PROVIDE IF AVAILABLE, BUT NOT REQUIRED UNTIL AND IF AN AWARD IS MADE TO PROPOSER.)
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
City of Santa Ana RFP No. 23-165 Page 185 of 196
(9)
ATTACHMENT B
REFERENCES
List and describe fully the contracts performed by your firm which demonstrate your ability to provide the
supplies, equipment or services included in the scope of the proposal specifications. Attach additional
pages if required. The City reserves the right to contact each of the references listed for additional
information regarding your firm's qualifications.
REFERENCE
Customer Name: Contact Individual:
Address: Phone Number:
EMAIL:
Contract Amount: Year:
Description of supplies, equipment, or services provided:
REFERENCE
Customer Name:
Address:
Contact Individual:
Phone Number: .
EMAIL:
Contract Amount: Year:
Description of supplies, equipment, or services provided:
REFERENCE
Customer Name:
Address:
Contact Individual:
Phone Number: .
EMAIL:
Contract Amount: Year:
Description of supplies, equipment, or services provided:
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
City of Santa Ana RFP No. 23-165 Page 186 of 196
(9)
ATTACHMENT C
PROPOSER'S STATEMENT
Proposer understands and agrees that this written RFP (or any part thereof specifically designated and
accepted by the City of Santa Ana, hereinafter City) shall constitute the entire agreement between proposer
and the City only after it has been accepted by the City Council, endorsed by the Clerk of the Council with
her signature and official seal noting hereon the action of approval of the Council, signed by the Executive
Director or his duly authorized agent, and signed by the City Attorney, denoting his approval of the form of
this document, and its execution, and when it or an exact copy of it has been either delivered to proposer or
deposited with the United States Postal Service properly addressed to the proposer with the correct postage
affixed thereto.
Proposer further agrees that upon delivery (as defined above) of the accepted agreement he/she will furnish
City all required bonds and certificate of liability insurance within ten (10) days (excluding Saturdays,
Sundays and City's legal holidays), or the funds, check, draft, or proposer's bond substituted in lieu thereof
accompanying this proposal shall become the property of the City and shall be considered as payment of
damages due to the delay and other causes suffered by City because of the failure to furnish the necessary
bonds and because it is distinctly agreed that the proof of damages actually suffered by City is difficult to
ascertain; otherwise said funds, check drafts, or proposer's bond substituted in lieu thereof shall be returned
to the undersigned.
Proposer understands that a proposal is required for the entire work, that the estimated quantities set forth
in the RFP schedule are solely for the purpose of comparing proposals, and that final compensation under
the contract will be based upon the actual quantities of work satisfactorily completed.
All terms contained in the specifications, the certification of nondiscrimination by contractors, and the
required insurance certificates are to be incorporated by reference into this agreement and are made
specifically as part of this RFP.
Firm
Signed and Printed Name:
Title
Date
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
City of Santa Ana RFP No. 23-165 Page 187 of 196
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ATTACHMENT D
NON -COLLUSION AFFIDAVIT
(Title 23 United States Code Section 112 and Public Contract Code Section 7106)
To the CITY OF SANTA ANA
In accordance with Title 23 United States Code Section 112 and Public Contract Code 7106 the proposer
declares that the proposal is not made in the interest of, or on behalf of, any undisclosed person,
partnership, company, association, organization, or corporation; that the proposal is genuine and not
collusive or sham; that the proposer has not directly or indirectly induced or solicited any other proposer
to put in a false or sham proposal, and has not directly or indirectly colluded, conspired, connived or
agreed with any proposer or anyone else to put in a sham proposal, or that anyone shall refrain from
bidding; that the proposer has not in any manner, directly or indirectly, sought by agreement,
communication, or conference with anyone to fix the proposal price of the proposer or any proposer, or
to fix any overhead, profit, or cost element of the proposal price, or of that of any other proposer, or to
secure any advantage against the public body awarding the contract of anyone interested in the
proposed contract; that all statements contained in the proposal are true; and, further, that the proposer
has not, directly or indirectly, submitted his or her proposal price or any breakdown thereof, or the
contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any
corporation, partnership, company association, organization, bid depository, or to any member or agent
thereof to effectuate a collusive or sham proposal.
Note: The above non -collusion affidavit is part of the proposal. Signing this proposal on the signature
portion thereof shall also constitute signature of this non -collusion affidavit. Proposers are cautioned that
making a false certification may subject the certifier to criminal prosecution.
Signed
State of , County of
Subscribed and sworn to (or affirmed) before me on this day of , 20 , by
, proved to me on the basis of satisfactory evidence to be the person(s)
who appeared before me.
Notary Public Signature Notary Public Seal
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
City of Santa Ana RFP No. 23-165 Page 188 of 196
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ATTACHMENT E
NON -LOBBYING CERTIFICATION
The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or
her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned,
to any person for influencing or attempting to influence an officer or employee of any Federal
agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member
of Congress in connection with the awarding of any Federal contract, the making of any Federal
grant, the making of any Federal loan, the entering into of any cooperative agreement, and the
extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan,
or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person
for influencing or attempting to influence an officer or employee of any Federal agency, a Member
of Congress, an officer or employee of Congress, or an employee of a Member of Congress in
connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned
shall complete and submit Standard Form-LLL, "Disclosure of Lobbying Activities," in
conformance with its instructions.
This certification is a material representation of fact upon which reliance was placed when this transaction
was made or entered into. Submission of this certification is a prerequisite for making or entering into this
transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required
certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for
each such failure.
The prospective participant also agrees by submitting his or her bid or proposal that he or she shall
require that the language of this certification be included in all lower tier subcontracts, which exceed
$100,000 and that all such subrecipients shall certify and disclose accordingly.
Signed:
Title:
Firm:
Date:
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
City of Santa Ana RFP No. 23-165 Page 189 of 196
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ATTACHMENT F
NON-DISCRIMINATION CERTIFICATION
The undersigned consultant or corporate officer, during the performance of this contract, certifies as
follows:
The Consultant shall not discriminate against any employee or applicant for employment because of
race, color, religion, sex, or national origin. The Consultant shall take affirmative action to ensure that
applicants are employed, and that employees are treated during employment without, regard to their
race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the
following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising;
layoff or termination; rates of pay or other forms of compensation; and selection for training, including
apprenticeship. The Consultant agrees to post in conspicuous places, available to employees and
applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination
clause.
2. The Consultant shall, in all solicitations or advertisements for employees placed by or on behalf of
the Consultant, state that all qualified applicants will receive consideration for employment without
regard to race, color, religion, sex, or national origin.
3. The Consultant shall send to each labor union or representative of workers with which he/she has a
collective bargaining agreement or other contract or understanding, a notice to be provided advising
the said labor union or workers' representatives of the Consultant's commitments under this section,
and shall post copies of the notice in conspicuous places available to employees and applicants for
employment.
4. The Consultant shall comply with all provisions of Executive Order 11246 of September 24, 1965,
and of the rules, regulations, and relevant orders of the Secretary of Labor.
5. The Consultant shall furnish all information and reports required by Executive Order 11246 of
September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant
thereto, and will permit access to his/her books, records, and accounts by the administering agency
and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules,
regulations, and orders.
6. In the event of the Consultant's non-compliance with the nondiscrimination clauses of this contract or
with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or
suspended in whole or in part and the Consultant may be declared ineligible for further Government
contracts or federally assisted construction contracts in accordance with procedures authorized in
Execution Order 11246 of September 24, 1965, and such other sanctions may be imposed and
remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule,
regulations, or order of the Secretary of Labor, or as otherwise provided by law.
7. The Consultant shall include the portion of the sentence immediately preceding paragraph (1) and the
provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by
rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive
Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract
City of Santa Ana RFP No. 23-165 Page 190 of 196
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or purchase order as the administering agency may direct as means of enforcing such provisions,
including sanctions for noncompliance; provided, however, that in the event the Consultant becomes
involved in, or is threatened with, litigation with a subconsultant or vendor as a result of such direction
by the administering agency, the Consultant may request that the United States enter into such
litigation to protect the interests of the United States.
8. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1939, and as
amended, no discrimination shall be made in the employment of persons upon public works because
of race, religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital
status, or sex of such persons, except as provided in Section 1420, and any consultant of public
works violating this Section is subject to all the penalties imposed for a violation of the Chapter.
Signed:
Title:
Firm:
Date:
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
City of Santa Ana RFP No. 23-165 Page 191 of 196
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ATTACHMENT G
PROPOSERS' QUESTIONNAIRE
NOTE: The numbers in this table correspond with the numbers listed in the Scope of Services. A "YES" response
indicates the proposed system addresses all the detailed elements and functionalities identified in the Scope of
Services. A "NO" response indicates that the system does not address all the functionalities. Proposers may include
QUALIFIED responses to items they marked "NO," but suspect may fulfill the needs of the City through other means
within the proposed system. Space for QUALIFIED responses may be attached at the end of these tables.
Proposers may attach additional pages on letterhead if more space is needed for this purpose.
SOFTWAREe
NO
Al
System possesses the ability to integrate with various City & Third -Party solutions,
including but not limited to the City's incoming LMS (Clariti) and the City's Treasury
Services payment modules (System Innovators iNovah application & City of Santa
Ana's PAY application), and the City's current Enterprise Resource Planning (ERP)
system, Infor Lawson.
A2
Support for an automatic registration capability to convert qualified pre -licensing
accounts to active business license tax accounts ready for receipt/business license
certificate issuance or variance/penalty billing.
Support for a competent in arrears original delinquency penalty abatement
A3
calculation/billing capability and incorporate a flexible installment agreement function
with tracking.
Support for pre -licensing and license renewal "pop-up" calculators.
A4
A5
System supports filing, reporting, and payment tracking modules for the City's tax
programs for registration, renewal, payment, and collection needs.
A6
System automates the application, renewal, and payment business process of City of
Santa Ana tax and assessment accounts.
A7
System can calculate standard or special taxes, fees, and assessments (in addition to
penalties and interests) from City -defined formulas or rates with the ability for authorized
City staff to override and amend the amounts charged.
A8
The ability to associate a payoff order/sequence to fees, taxes, interests, penalties, and
any other charges within the system.
A9
System can record and associate accounts with invoice identifiers, receipts (including
date and time of payment), and revenue account numbers for each tax and fee
transaction.
A10
System can categorize and group accounts by appropriate record elements, particularly
by business type, and apply the appropriate estimated taxation based on the license
type category and related tax assessment.
All
System allows for records to be searched, tracked, logged, and monitored based on
different record elements, such as active/inactive status, age, location/GIS code, and
business type.
Al2
System allows for City staff to insert comments and notes on any account and place
flags or warnings to accounts based on special comments/conditions, with timestamps
and logs stored for each entry or transaction, including staff name plus ID number.
A13
System generates consistent and accurate reports in standard or customizable formats
on a scheduled or as -needed basis.
A14
Proposer will migrate data from the City's current software(s) to the awarded software
system.
City of Santa Ana RFP No. 23-165 Page 192 of 196
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A15 Proposer will provide continuous updates or allow for the configuration of rules within
the system to meet the City's changes in legislative requirements, technology needs,
and operational demands, in addition to complying with Federal and State of California
laws and regulations.
A16 System supports Section 508 Accessibility Standards.
A17 Proposer can apply the City of Santa Ana logo and other branding elements where
SEC. B TECHNICAL SYSTEM / SOFTWARE REQUIREMENTS•
B1 System can function in a web -based environment with support for multiple browsers
including Microsoft Edge Chromium Edition and Google Chrome browsers on Windows
versions 10 and 11.
B2
Proposer will provide automatic file backups with daily continuity and disaster recovery.
B3
System can provide or integrate with a GIS/GEO code address master to ensure
applicants seeking licensure as in -city businesses have both a City of Santa Ana postal
designation as well as function at a validated physical location within the City's formal
boundaries.
B4
System can integrate with the City's incoming LMS (Clariti) to properly link licenses with
the City's real estate records. The proposed system must be able to automatically
suppress issuance of a formal business license tax certificate when unapproved or
pending requirements are noted in Clariti.
System supports County of Orange tax lien and City of Santa Ana administrative citation
B5
processes.
B6
System handles Standard Industrial Classification (SIC) Code assignments / North
American Industrial Classification System (NAICS) Code selections as part of the initial
business licensing process.
System ensures data integrity, accuracy, and completeness with standard or
B7
configurable validation rules for data fields.
System possesses the ability for bulk data entry that triggers workflow processes within
B8
the system.
B9
System possesses the ability to export account records in bulk with mail merge printing
capabilities.
B10
System possesses the ability to send mass to select email addresses on record.
City of Santa Ana RFP No. 23-165 Page 193 of 196
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B11
System can automatically generate and distribute invoices/billing statements and filing
forms via email for business license renewals on a monthly, quarterly, semi-annual,
annual, or as -needed basis based on the business type or other defined characteristics.
B12
System possesses the ability to export financial records or contain a General Ledger
interface that communicates with the City's existing or future financial systems and other
City software systems.
B13
System accepts payments by cash, check, credit, ACH/EFT with the ability to accept
payments online including partial payments and mixed tender payments (combination of
check, credit, and cash).
B14
System permits staff to adjust payments (e.g. payment submitted to wrong account or
fee and adjustments are needed) with record of transactional changes within the system.
B15
System issues a paper receipt or an online receipt upon receiving a completed payment.
B16
System tracks account deposits and credits that may be applied to future business
license renewals.
B17
System supports a City -controlled carry -forward function to carry unpaid balances
forward into a future tax year.
B18
System processes payment refunds, issue credits, and void payments transactions.
B19
System imposes a fee for payments returned as a result of insufficient funds.
B20
System automatically generates and places warnings and/or holds on noncompliant
accounts as a result of delinquency, license expiration, returned payments (i.e., bounced
checks), partial payments not approved, and other City -defined characteristics.
B21
System supports the ability to place specific business type accounts in a nonrenewal
"suspense" state if the license is not renewed within a twelve (12) month period.
B22
System will remain in compliance with industry -standard payment security protocols and
regulations, including Payment Card Industry Data Security Standards (PCI DDS).
B23
System allows an authorized staff member to manually release an automatic "Hold" on
an account to permit issuance of a business license tax certificate.
B24
System contains or implements security measures to protect the confidentiality and
integrity of information on record.
B25 System supports a single sign -on from within the City of Santa Ana's internal network or
support LDAP authentication via Active Directory.
B26 For on -premises hosting, the proposed solution is compatible with Microsoft Windows
Server (2022).
B27 For on -premises hosting, the proposed solution is compatible with Microsoft SQL Server
2017 or 2019.
B28 System integrates with Microsoft Exchange Server 2016 or later for system
functionalities requiring City infrastructure to send and receive emails.
B29 The proposer understands that the proposed system must provide updates for current
and future versions of integrated City software at no additional cost, except cost
incorporated in an annual base support and maintenance fee.
City of Santa Ana RFP No. 23-165 Page 194 of 196
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C1 The Public Portal / Citizen Access component(s) supports multiple browsers and their
versions, and multiple operating systems in desktop or scalable mobile formats (i.e.
tablet, smartphone, laptop, etc.).
C2 System supports translations within the system itself or through integrated tools, such
as Google Translate, with specialized expert (City defined) language translations as
needed.
C3 System enables members of the public to submit inquiries and complaints online,
without requiring access credentials should submitters desire to remain anonymous.
C4 System controls information visibility and limit public access to internal information with
the City able to determine what is viewable by the public.
SEC. D
UNLICENSED BUSINESS D DEVELOPMENT
•
D1
System actively supports the conversion process of guiding leads towards business
license registration which may include the upload of external data to be compared with
City of Santa Ana data to identify unlicensed businesses within the City's boundaries.
D2
System possesses the ability to search, filter, and categorize leads to view and process
by source, business license type, campaign category, and other relevant attributes.
D3
System possesses the ability to export bulk lead records with mail merge printing
capabilities to allow for the creation and revision of licensing notices and other
letters/memorandums/documents generated with predefined document templates,
including archiving final notices based on campaign type and re uestor ID.
E1 The proposer understands the City expects full implementation, release, and
acceptance by mid- to late-2025.
City of Santa Ana RFP No. 23-165 Page 195 of 196
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E2
Proposer understands they must provide projected software customization, testing, data
migration, implementation, parallel operation and final release and acceptance
timelines.
E3
Proposer understands they must provide unlimited phone and email support to the City
of Santa Ana during the City's regular business hours. The City operates from 7:30 A.M.
— 5:30 P.M. Monday through Thursday, and 8:00 A.M. — 5:00 P.M. every other Friday.
E4
Proposer can provide emergency support after regular business hours that may be
charged separately.
E5
Proposers possesses the ability to provide remote desktop support.
City staff will have the ability to view Support and Enhancement Requests (including
E6
individual and City-wide request tickets) via reports and/or portal access.
Proposer will provide a testing environment for implementation of the new system that
E7
will remain available at all times during the term of the contract.
Proposer understands they must own, lead, manage, and coordinate all aspects of the
E8
project to migrate from the City's current taxation software to the awarded application.
E9
Proposer understands they must own and manage the entirety of the historical data
conversion from the current system to the awarded application.
E10
Proposer understands they are responsible for the cleansing, extraction, translation,
and upload of the City's data.
E11
Proposer understands that City staff's responsibility will be limited to providing general
feedback on the data conversion.
E12
Proposer understands they must provide comprehensive software training that does not
employ a train -the -trainer approach.
F1 Proposed system can offer a module for the administration of the PREP, including a
public interface, with the ability to perform primary and variance/penalty billing utilizing
the same business rules as the Business License Taxation Software.
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
City of Santa Ana RFP No. 23-165 Page 196 of 196