HomeMy WebLinkAboutOrdinance 4912 ORDINANCE NO. 4912
AN ORDINANCE TO AMEND CHAPTER 35 : TAXATION OF
THE CODE OF FAYETTEVILLE BY ENACTING A
PROVISION REQUIRING , LICENSES FOR OUTDOOR
VENDORS TO ENSURE COMPLIANCE FOR ZONING AND
TAXATION REQUIREMENTS
WHEREAS, the City of Fayetteville should work with the Bikes, Blues and Barbeque,
Inc. to ensure outdoor vendors for this major annual festival comply with health and zoning laws
and sales tax requirements; and :
WHEREAS, Bikes, Blues and Barbeque, Inc. has agreed to ensure that vendors have all
necessary health department permits mand City zoning compliance documents before issuing its
permits for all vendors throughout the City during this festival; and
WHEREAS, Bikes, Blues and Barbeque, Inc. has agreed to collect all appropriate taxes
each night and forward these taxes to the appropriate governmental entity in a timely fashion;
and
WHEREAS, Bikes, Blues and Barbeque, Inc. has agreed to pull its permit from any
vendor who fails to properly remit its taxes or otherwise is in violation of the law and provide a
list of such unpermitted vendors to the City of Fayetteville.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section l : That the City Council of the City of Fayetteville, Arkansas hereby amends
Chapter 35 : Taxation by enacting a new section 35 .40 as shown below:
"35.40 Enforcement of tax laws and code compliance for
outdoor vendors during the Bikes, Blues, and Barbeque, Inc.
annual festival.
"(a) During the annual Bikes, Blues and Barbeque festival; Bikes, Blues and
Barbeque, Inc. shall ensure that all outdoor vendors have all necessary
health permits and zoning compliance permits prior to issuing its permit to
allow the vendor to operate.
"(b) Bikes, Blues and Barbeque, Inc. shall require all of its authorized vendors to
conspicuously display its authorizing permit during all hours of operation.
"(c) Bikes, Blues and Barbeque, Inc. shall ensure that each authorized vendor shall remit all
required sales and use taxes at the end of each day' s operation and shall remove its authorizing
permit from any vendor who fails to timely and completely remit these taxes.
"(d) If a vendor attempts to sell goods or services without all the required permits
conspicuously displayed, such vendor shall be guilty of a violation and be subject to the penalty
provided for in §35.99.
"(e) The above permit requirement shall not be applicable to vendors at the Fayetteville
Farmer's Market, for merchants with an established physical address and building and
established record of proper HMR tax remission to the City, or other vendors specifically
exempted by state law from such permit requirements."
PASSED and APPROVED this 15`s day of August, 2006.
�.•��JY O c ••GPF
APPROVE + ATTEST:
: FAYETTEVILLE :
•,L
. �•9s' 9:QKANSPc'J� �
By: r . B y: TON
DAN COODY, Mayor . S NDRA SMITH, City Clerk ��� ��
C ore&
City of Fayetteville �9
Staff Review Form �nd
City Council Agenda Items
or
Contracts
8/15/2006
City Council Meeting Date
Gary Dumas Operations
Submitted By Division Department
Action Required:
Sales and Use Tax Collection and Health and Zoning Compliance During Bikes, Blues and BBQ
$ $ NA
Cost of this request Category / Project Budget Program Category / Project Name
0 $ NA
Account Number Funds Used to Date Program / Project Category Name
0 $ NA
Project Number Remaining Balance Fund Name
Budgeted Item Budget Adjustment Attached
Previous Ordinance or Resolution #
Depa�rtm /t Director Date Original Contract Date:
zl� Original Contract Number:
City ( Date
Received in CitClerk's ffice
D
zn
Finance d Internal Service Director Date
Received in Mayor's Office
/2
Mayor bate
Comments:
Taye elle
OPERATIONS DIRECTOR
To: City Council
From : Gary Dumas
l Date: July 27, 2006
Re: Sales and Use Tax Collection and Health and Zoning Compliance During Bikes,
r
Blues and BBQ
Recommendation
Approve Ordinance amendment adding Section 35.40 authorizing the Bikes, Blues and
BBQ organization to monitor outdoor vendors during the Bikes, Blues and BBQ event to
ensure health and zoning compliance and to ensure that required sales and use taxes are
remitted daily to the appropriate governmental entity.
Background
Bikes, Blues and BBQ has hosted their annual event for the past several years. The event
is growing annually, and issues with zoning compliance, health permits, and payment of
sales and use taxes has been problematic. While all of these issues are important, the one
indicator of the success of the event, spikes in sales and use taxes, has not occurred.
Other major events in the region and beyond have developed mechanisms to address the
issues associated with the influx of vendors for short-tern community events.
Discussion
A process of issuing certificates of zoning compliance for the vendors not on BBB
controlled property has been in place since the inception of the event. It has improved
amorally, but with the increasing number of vendors offsite, in various parking lots on
College, 6i1' St., Lafayette, School, and others, it has become increasing difficult to
monitor and maintain the necessary zoning setback and safety requirements.
The proposed process to be implemented is as follows:
1 . For vendors on BBB controlled property, BBB will be totally responsible for
health and zoning regulations and will collect sales and use taxes daily.
2. For vendors not exempted by the ordinance or a part of a separate City permitted
event on City property will be required to obtain a certificate of zoning
compliance from the Planning Division. This certificate will be required to be
prominently displayed by each vendor. Each vendor will be directed by the
Planning Division to contact BBB to obtain at no cost a BBB event permit. This
permit too, is to be displayed prominently by each vendor.
3 . During workdays the Community Resources officer will monitor the vendors and
direct them to the Planning Division is they have no certificate of zoning
113 West Mountain
Fayetteville, Arkansas 72701
Office phone - 479-575-8330
Fax - 479-575-8257 ,
E-mail - gdumas@ci.lhyencvi1le.ar.us
compliance. If they.have a certificate of zoning compliance but no BBB permit,
their certificate of zoning compliance will be removed and they will be required
to close.
4. Each day BBB will ensure that each vendor remits all required sales and use taxes
for that days activity. If the vendor fails to remit the sales and use taxes as
required, BBB shall remove the BBB event permit and contact Community
Resources during the workweek or the Police Department during the weekend,
who shall remove the certificate of zoning compliance and require the vendor to
close.
5. BBB will forward all sales and use taxes collected to the appropriate
governmental entity.
f This process should improve health, safety, and zoning compliance in addition to
ensuring that appropriate sales and use taxes are remitted.
113 West Mountain
Fayetteville, Arkansas 72701
Office phone - 479-575-8330
Fax - 479-575-8257
E-mail - gdunias@ci.:ayct(cvi11c.ai .us
ORDINANCE NO,
AN ORDINANCE TO AMEND CHAPTER 35 : TAXATION
OF THE CODE OF FAYETTEVILLE BY ENACTING A
PROVISION REQUIRING LICENSES FOR OUTDOOR
VENDORS TO ENSURE COMPLIANCE FOR ZONING AND
TAXATION REQUIREMENTS
WHEREAS, the City of Fayetteville should work with the Bikes, Blues and Barbeque,
Inc. to ensure outdoor vendors for this major annual festival comply with health and zoning laws
and sales tax requirements; and
WHEREAS, Bikes, Blues and Barbeque, Inc. has agreed to ensure that vendors have all
necessary health department permits and City zoning compliance documents before issuing its
permits for all vendors throughout the City during this festival; and
WHEREAS, Bikes, Blues and Barbeque, Inc. has agreed to collect all appropriate taxes
each night and forward these taxes to the appropriate governmental entity in a timely
fashion; and
WHEREAS, Bikes, Blues and Barbeque, Inc. has agreed to pull its permit from any
vendor who fails to properly remit its taxes or otherwise is in violation of the law and provide a
list of such unpermitted vendors to the City of Fayetteville.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1 : That the City Council of the City of Fayetteville, Arkansas hereby amends
Chapter 35 : Taxation by enacting a new section 35 .40 as shown below:
"35.40 Enforcement of tax laws and code compliance for
outdoor vendors during the Bikes, Blues, and Barbeque, Inc.
annual festival.
"(a) During the annual Bikes, Blues and Barbeque festival; Bikes,
Blues and Barbeque, Inc. shall ensure that all outdoor vendors have
all necessary health permits and zoning compliance permits prior
to issuing its permit to allow the vendor to operate.
"(b) Bikes, Blues and Barbeque, Inc. shall require all of its
authorized vendors to conspicuously display its authorizing permit
during all hours of operation.
"(c) Bikes, Blues and Barbeque, Inc. shall ensure that each
authorized vendor shall remit all required sales and use taxes at the
end of each day's operation and shall remove its authorizing permit
from any vendor who fails to timely and completely remit these taxes.
"(d) If a vendor attempts to sell goods or services without all the
required permits conspicuously displayed, such vendor shall be guilty
of a violation and be subject to the penalty provided for in §35 .99.
"(e) The above permit requirement shall not be applicable to
vendors at the Fayetteville Farmer' s Market, for merchants with
an established physical address and building and established record
of proper HMR tax remission to the City, or other vendors
specifically exempted by state law from such permit requirements."
PASSED and APPROVED this 15th day of August, 2006.
APPROVED: �rrT
p
By:
DAN COODY, Mayor
ATTEST:
By:
SONDRA SMITH, City Clerk
FAYETTEVILLE �
THE CITY OF FAYETTEVIUE, ARKANSAS
KIT WILLIAMS, CITY ATTORNEY
DAVID WHITAKER, ASST. CITY ATTORNEY
DEPARTMENTAL CORRESPONDENCE LEGALDEPARTMENT
f
r
TO: City Council
FROM: Kit Williams, City Attorney 4A=
DATE : July 27, 2006
RE: Bikes, Blues & Barbeque, Inc.
Proposal and Ordinance
A couple of months ago, representatives of Bikes, Blues and
Barbeque, met with Mayor Coody, Gary Dumas and me to present their
Proposal to ensure their outdoor vendors would comply with all laws
(zoning, health, and tax). I was instructed to draft an ordinance for your
consideration which we would hope to be in effect by this year's festival.
Attached is that proposed ordinance as well as the original Proposal from
Bikes, Blues and Barbeque, Inc.
This ordinance is limited only to the Bikes, Blues, and Barbeque
festival for several reasons. This festival dwarfs all other city festivals in
number of visitors, number of outdoor vendors, number of days, and amount
of sales tax generating commercial activity. Even more important is that
Bikes, Blues and Barbeque, Inc. has offered their personnel to ensure
vendors have necessary permits and will remit their sales taxes daily.
Unfortunately in the past, much of the sales tax revenue was probably
not reported. Without Bikes, Blues and Barbeque, Inc. ' s willingness to
collect the sales tax revenue daily and to evict any vendor who fails to
promptly remit .the collected :sales tax revenue, many vendors might again
avoid their legal duty to collect and remit sales tax properly. This is not only .
illegal, but unfair competition to law abiding vendors.
BIKES, BLUES & BARBEQUE'S PROPOSAL
1 . We will have the complete responsibility of issuing permits to all vendors, regardless of
where located in the city. Since we will have the complete responsibility of issuing all
permits, then everyone who desires a permit must go through us.
2. Regarding the food vendors, we will obtain all health department permits before we
provide them a permit for BBBQ.
3 . We will issue color coded permits. Each permit will have a different color, the different
permits will be for food and beverage, the show only, hard goods and tax exempt. Each
permit will have a physical location listed on the permit. Each said permit shall be valid
for that location only.
4. When the permits are distributed we will also require a vendor agreement setting forth all
requirements for said permit and their agreement to abide by said requirements.
5 . We will be responsible for collecting all hotel motel taxes and sales tax each night. If
vendor has not paid all their respective taxes that night, we will pull their permit. All
taxes collected will be forwarded to the appropriate agency in a timely manner.
6. We will provide a list of permits pulled to whomever the City of Fayetteville designates
to enforce closures located off BBBQ designated areas.
7. We will also provide a list of vendors and the vendor' s respective address to the permit
office.
8. The above requirements do not apply to the Farmers Market, merchant's own sales on
their premises or merchant' s sales which are connected to their own premises.
Amber Wood - Ord. 4912 Page 1
From: Amber Wood
To: Dumas, Gary
Date: 8/23/06 3:37PM
Subject: Ord. 4912
Attached is a copy of Ordinance 4912 passed by City Council at the August 15, 2006 City Council Meeting.
If you have any questions please feel free to contact me at the number listed below.
Have a nice day!
Amber Wood
Deputy City Clerk
City of Fayetteville
City Clerk Division
Phone: (479) 575-8323
Fax: (479) 718-7695
awood@ci.fayefteville.ar.us
CC: Bell, Peggy; Deaton, Vicki; Elmore, Melissa
Arkansas Democrat Vif9amte
EEE�I=IMI
Northwest Arkansas Times
Benton County Daily Record
P. O. BOX 1607
FAYETTEVILLE, AR 72702
PHONE: 479-571 -6415
AFFIDAVIT OF PUBLICATION
I , Elizabeth Wax, do solemnly swear that I am Legal Clerk of the Arkansas
Democrat Gazette newspaper. Printed and published in Benton County
Arkansas, (Lowell) and that from my own personal knowledge and
reference to the files of said publication , the advertisement of:
Ordinance 4912
Was inserted in the Regular Editions: ORDINANCE NO. 419112
August 2S 2006 AN ORDINANCE TO AMEND CHAP ER 35: TAXA- TayeV
9 g TIONOF THE CODEOF FAYETTEVILLE BY ENACT-
Publication Charge : $ 137 . 97 NG A PROVISION REOVIRING LICENSES FOR
OUTDOOR VENDORS TO ENSURE COMPLIANCEFOR ZONING AND TAXATION REQUIREMENTS S
WHEREAS, the City of Fayeftevgo should work
with the Bikes. Blues and Barbecue, Inc. to ensure outdoor vendors fa this major annual festival
L, comply with health and zoang laws and sales tax requirements; and
Subscbed andsworn to b foreEREABr Bikes, Blues and Barbecue. Inc. nes agreed o ensure Inas enders have eR neces-
7�s sary health department permits and City zoning compliance documents before issuing Its peirnim
Thi da of for all vendors throughout the City during this festival; and
y 2 WHEREAS, Bikes, Blues and Barbeque, Inc. has agreed to collect all appropriate taxes each night
/i
and forward these taxes to Na appropriate govemmentai entity In a timely fashion; and -
WHEREAS, Bikes, Blues and Barbeque, Inc. has agreed to pull its permit from any vendor who
falls to properly remit Its taxes or otherwise Is in violation of the law and provide a list of such unper-
mitted vendors to me City cf Fayetteville.
NOW, THEREFOREr BE IT ORDAINED BV THE CITY COUNCIL OF THE CITU OF '
Notary Public - I FArErMVILLE, ARKANSAS--_ - — -
�> Section 1: That the City Council of the City of Fayetteville, Arkansas hereby emends Chapter 35:
Taxalion by enacting a new section 35.40 as shown below.
'35.40 Enforcement of tax laws and code compliance for outdoor vendors during the Bikes. Blues,
and Barbeque, Inc. annual festival.
My Commission Expires: I '(a) During the annual Bikes, Blues and Barbeque festival; Bikes, Blues and Barbeque, Inc. shall
gensure that all outdoor vendors have all necessary health permits and zoning compliance permits
I prior to issuing Its permit to allow the vendor to operate.
'(b) Bikes, Blues antl Barbeque, Inc, shall require all of Its authorized vendors to conspicuously dis-
play its authorizing permit during all fours of operation.
ham I (c) Bikes, Blues and Barbeque, Inc. shelf ensure that each authorized vendor shag remit at required I
Sharlene D' sales and use taxes at the end of each days operation and shag remove as authorizing permit from
pU blic any vendor who fails to emery and completely remit these taxes.
Notes (d) If a vendor attempts to sell goods or services without all the required permits conspicuously dis-
played, such vendor shag be guilty of a violation and be subject to the penally provided for In §3599.
State of Arkn EXpIreS (a) The above permt requirement shall trot be applicable to vendors at the Fayetteville Farmers
Market, lot merchants with an established physical address and building and established record of
Gommissio 14 proper HMR tax remission to the City, or other vendor specifically exempted by state law from sunMY pctober 18w 20 permit requirements.-
PASSED .M APPROVED this 15th day of August 2006.
APPROVED: ATTEST:
By: By:
DAN COODV, M. SONDRA SMITH, City CIM
RECEIVED
AUG 2 9 2006
CITY OF FAYETTEVIL_:.
CITY CLERK'S CFC;r.
