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PUBLIC HEARING TO ADOPT A RESOLUTION AMENDING THE FIREWORKS ENFORCEMENT FEE AND AMENDING THE FISCAL YEAR 2016-2017 ANNUAL BUDGET, AND ADOPT AN ORDINANCE AMENDING STOCKTON MUNICIPAL CODE TITLE 8, CHAPTER 8.92, SECTIONS 8.92.015 AND 8.92.090
recommended action
RECOMMENDATION
It is recommended that City Council approve a plan to reduce the use of illegal fireworks in the City of Stockton by:
Adopting an Ordinance:
1. Amending Stockton Municipal Code Title 8, Chapter 8.92, Section 8.92.015 to clarify the restrictions on the discharge and possession of dangerous fireworks; and
2. Amending Stockton Municipal Code Title 8, Chapter 8.92, Section 8.92.090 to increase the administrative penalty for violating the requirements in the Code.
Adopting a Resolution:
1. Amending the FY 2016-2017 Fee Schedule to increase the Fireworks Enforcement Fee;
2. Amending the FY 2016-2017 Annual Budget to increase the Safe & Sane Fireworks Program expenditure appropriation by $60,000 and the revenue appropriation by $44,085;
3. Amending the FY 2016-2017 Annual Budget to increase the 4th of July fireworks event expenditure appropriation by $13,000; and
4. Authorizing the City Manager to take appropriate actions to implement the intent of the Resolution.
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Summary
In addition to prohibitions against illegal and dangerous fireworks, the City of Stockton (“City”) regulates the sale and use of “safe and sane” fireworks as defined by state law. Despite the City’s current regulations, it has experienced an increase in the use of illegal fireworks. On September 13, 2016, City Council discussed options for reducing the illegal and dangerous conduct.
Based on the discussion and comments made by Council at the September 2016 meeting, staff prepared a plan to reduce the use of illegal fireworks in the City (“Plan”). To clarify enforcement and deter illegal conduct, the Plan recommends an amendment to Stockton Municipal Code (“SMC”) sections 8.92.015, “Sale and discharge [of fireworks]”, and 8.92.090, “Administrative penalties-Appeals.” Also, to allow increased funding for enforcement efforts, the Plan proposes an increase of the Fireworks Enforcement Fee and an increase in the appropriations for the Safe and Sane Fireworks Program. Finally, the Plan proposes implementation of a public education campaign, increased enforcement, and prevention actions. The total net General Fund cost of implementing this Plan is estimated to be $37,915.
Included in this staff report is a recommendation regarding the City’s annual 4th of July event and fireworks show at an additional non-General Fund cost of $13,000.
DISCUSSION
Background
The federal government regulates fireworks, but allows states to enact more stringent laws. The State of California has zero tolerance for the sale and use of “dangerous fireworks.” Under state law, dangerous fireworks consist of rockets, roman candles, firecrackers, and other fireworks that explode, go in the air, or move on the ground in an uncontrollable manner. The State of California allows local governments to enforce prohibitions against “dangerous fireworks” and regulate the use of “safe and sane” fireworks, identified by the State Fire Marshal’s “Safe and Sane” seal. In San Joaquin County, like Stockton, the cities of Lodi, Manteca, Tracy and Ripon allow safe and sane fireworks. All fireworks are illegal in all other areas of the County.
Many cities in California are struggling with the proliferation of illegal fireworks. Opponents of fireworks say they cause noise pollution and are a hazard to the community especially for veterans with post-traumatic stress disorder, children, especially those with special needs, and pets.
On May 4, 2010, City Council adopted an ordinance amending SMC Chapter 8.92, Fireworks, authorizing the sale and use of safe and sane fireworks in the City. The City’s Safe and Sane Fireworks Program specifies the sales permit process, establishes fees to cover administrative and public safety costs, and limits the time the fireworks can be discharged. Under the program, only local non-profits are authorized to apply for a sales permit. Permits are issued to 30 non-profits each year by lottery. According to the most recent data, in 2016 the non-profit organizations generated net profits from fireworks sales totaling $255,000, ranging from $3,800 on the low end and $18,500 on the high end. The net profits reflect earnings after fireworks purchases and payment of City fees.
Each year, near the July 4th holiday, the Police and Fire Departments put together an Illegal Fireworks Task Force. Police and Fire staff patrol the community looking for illegal fireworks activity. Yet, each year since 2010, there has been an increase in the use of illegal fireworks.
Because the City has experienced a continual increase in the use of illegal and dangerous fireworks, it appears that the City’s current enforcement efforts and the funds to support those are no longer adequate. On September 13, 2016, staff presented the Council with options to mitigate the use of illegal fireworks. Council provided feedback and direction to staff to return with a plan to help reduce the use of illegal fireworks and complaints.
Present Situation
Based on best practices and feedback received from Council, staff prepared a four-part Plan to reduce the use of illegal fireworks. Below is an outline of the proposed Plan:
1. Code Amendment
SMC section 8.92.090, “Administrative penalties-Appeals,” individuals who violate the provisions of Chapter 8.92, which regulate the sale, use, and possession of fireworks, are subject to administrative penalties. Currently, the amount varies: $250 for the first violation, $500 for the second violation, and $1,000 for any subsequent violation in any 12-month period. These penalties do not adequately cover enforcement costs or sufficiently deter the illegal conduct.
Therefore, following the example of a similar city (Oakland), staff recommends City Council increase the fine to $1,000 per violation. Fines collected will be used to fund a variety of other components of the programs, such as a public education campaign, and increased enforcement.
Staff further recommends that City Council amend SMC section 8.92.015, “Sale and discharge,” to clarify that both the discharge and possession of dangerous fireworks is prohibited in the City. Currently, section 8.92.015(G) indicates that the discharge of dangerous fireworks is prohibited within the City but fails to address possession. Thus, the proposed amendment adds possession to the listed prohibitions. The remainder of the language in that subsection is being removed to reflect the City’s ability to more reliably identify violators and to effectively enforce its code based on those identifications.
Although it is difficult to determine the exact amount of revenue this increase will provide the City in future years, the increase to the fine, along with the changes being made to the Municipal Code will give City staff the resources and ability to educate the public on the seriousness of this violation and provide a more flexible approach to issue citations for violations.
2. Enforcement Fee
Each year, 30 permits are issued to qualifying non-profit applicants for the sale of “Safe and Sane” fireworks. To help cover the costs of enforcement, SMC section 8.92.040 requires organizations that receive fireworks sales permits to pay a regulatory fee (“Fireworks Enforcement Fee”).
Due to the increase in the illegal use of fireworks and the associated costs of stopping that illegal conduct, the current fee of $600 per permit no longer covers the full cost of enforcement. Therefore, staff recommends that the Fireworks Enforcement Fee be increased to $1,200. Increasing the fee will provide an additional $18,000 towards enforcement each year. The amendment to the Fireworks Enforcement Fee on page F-49 of the FY 2016-2017 Fee Schedule would be effective immediately following Council approval. The increase will help to offset the cost of increased enforcement discussed above.
3. Public Education
In addition to the ordinance amendment and fee increase, the Plan includes the development of a comprehensive public education campaign. This campaign will include presentations at schools, yard signs, PSAs on Channel 97, updating City’s website, and social media messaging. The Fire Department will coordinate the public education efforts and include many components into the existing fire prevention public education program. Staff proposes an appropriation of $10,000 towards a public education campaign.
4. Enforcement and Prevention
Each year, the Fire and Police Department form an enforcement task force and each year, the task force receives more complaints than it can address. The Plan recommends an expansion of the task force to increase the City’s ability to investigate complaints. The taskforce will also coordinate with the District Attorney’s office to conduct proactive enforcement efforts such as stings. The City has historically spent about $26,000 annually on enforcement. Enforcement was increased in the July 2016 season that increased the cost to approximately $44,000. There was no additional revenue to offset the cost increase. It is proposed that we increase the cost of enforcement by another $36,000 for a total appropriation of $80,000 to pay for the additional days and added prevention efforts.
The Plan, if approved, will be implemented in 2017 and will be evaluated annually to determine its effectiveness. The ordinance, if adopted, will take effect in 30 days in accordance with the process under the City Charter. The Resolution, if adopted, will take effect immediately.
In addition to the changes noted above, the City will again provide the community the option to attend a City sponsored fireworks show. The hope is that the public will come to this event to enjoy fireworks and possibly reduce the use of illegal fireworks throughout the City. The fireworks show does create additional work for the Police Department due to the substantial number of attendees, both in the Weber Point Events Center and the surrounding areas. The City intends to host the annual 4th of July Fireworks show at Weber Point Events Center this year. The community is encouraged to attend the Veteran’s Parade the morning of the 4th of July and conclude the day at the City’s event which will feature activities for families.
Last year’s cost for this event was approximately $20,000. The fireworks component was a shared cost between the City and the Stockton Ports, as the Ports typically hosted a home game. This year the Ports will not host a game. If the Council approves, the financial burden of the entire fireworks show will be incurred by the City. That, in addition, to increased security costs due to a very well attended event last year, will bring this year’s events costs to $33,000. Although most of these costs will be budgeted for in the City’s annual budget process, $13,000 is needed in this fiscal year to provide deposits for the fireworks and entertainment. The City is including this request for to increase the expenditure appropriation to ensure a successful event.
FINANCIAL SUMMARY
The proposed program revisions necessitate additional budget appropriations in the FY2016-17 Fire Department Budget. The proposed program is estimated to cost an additional $46,000 as follows:
Estimated costs:
• Public Education (brochures, signage, distribution) $ 10,000
• Expanded Enforcement $ 36,000
Increasing the Fireworks Enforcement fee and the administrative penalties should offset the additional program costs by approximately $18,000. Increasing the administrative penalty to $1,000 per violation is not expected to increase revenue from penalties until next fiscal year. Penalty revenue estimates will be included in the FY2017-18 proposed budget.
The table below shows the net General Fund cost per fiscal year. The total net General Fund Cost for the 4th of July season is $37,915. The increase to the 4th of July fireworks event of $13,000 will be paid from the Recreation Fund Balance.
Appropriations
Expenses for the fireworks program cross fiscal years with over 70% of the existing expenses occurring in the first part of July. The following table compares the cost of the current program to the cost of the proposed plan and shows the cost distribution by fiscal year.
Table 1
|
|
Current Program |
Proposed Program |
|
|
|
FY 2016-17 Appropriation |
FY 2017-18 Appropriation |
Total Cost |
|
Revenues |
$26,085 |
$44,085 |
$8,000 |
$52,085 |
|
Expenses |
44,000 |
58,000 |
32,000 |
90,000 |
|
Net Cost |
($17,915) |
($13,915) |
($24,000) |
($37,915) |
For the remainder of FY 2016-17 the fireworks program will generate $26,085 for existing fees and $18,000 from new fees for total revenues of $44,085. With the added cost of $46,000, total expenses for the remainder of FY 2016-17 are projected to be $58,000. A net shortfall of $13,915 is projected for the program in FY 2016-17 and will need to be funded from the General Fund contingency.
To fund the fireworks program, the following appropriations are needed in the FY 2016-17 Fire Department General Fund Budget:
• Fireworks Stand Fee revenues of $44,085 in General Fund account number 010-2634-342, and
• Fireworks program expenditures of $58,000 in General Fund Fire Department account number 010-2634-530.
• Reduce General Fund Contingency appropriation by $13,915.
Similar appropriations for FY2017-18 will be presented for consideration during the upcoming budget development process and will be contingent on available funding sources.
In addition, expenses for the 4th of July Firework event will require an increase in appropriation to the FY 2016-17 Community Services Recreation Fund Budget:
• 4th of July Event expenditure appropriation of $13,000 in Recreation Fund account number 044-3646-590 from fund balance.
Attachment A - Proposed Ordinance (Redline Version)