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HomeMy WebLinkAbout2010-01-20 - Agendas - FinalOrdinance Review Committee Officers Brenda Thiel, Chair, Ward 1 aye vi1e ARKANSAS Final Agenda City of Fayetteville, Arkansas Ordinance Review Committee Meeting January 20, 2010 Ordinance Review Committee Members Matthew Petty, Ward 2 Robert Rhoads, Ward 3 Sarah Lewis, Ward 4 A meeting of the Ordinance Review Committee will be held on January 20, 2010 at 4:30 PM in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Call to Order EXPANSIVE CLAY SOILS OVERLAY DISTRICT: Submitted by Strategic Planning staff at the request of Alderman Matthew Petty. The request is for the Committee to receive an update from staff regarding a timeline and project scope. Staff: Karen Minkel ADM 09-3273; (BUSINESS REGISTRY AND LICENSE PROGRAM): Submitted by Strategic Planning Staff at the request of Alderwoman Shirley Lucas. The request is to forward an ordinance adding Chapter 118 Business Registry and Licenses to the Fayetteville City Code with a recommendation for approval. Staff: Karen Minkel NOTICE TO MEMBERS OF THE AUDIENCE All interested parties may appear and be heard at the public hearings. Once the Chair recognizes you, go to the podium and give your name and address. Address your comments to the Chair, who is the presiding officer. The Chair will direct your comments to the appropriate appointed official, staff, or others for response. Please keep your comments brief, to the point, and relevant to the agenda item being considered so that everyone has a chance to speak. Interpreters or TDD, Telecommunication Device for the Deaf, are available for all public hearings; 72 hour notice is required. For further information or to request an interpreter, please call 575-8330. As a courtesy please turn off all cell phones and pagers. A copy of the Ordinance Review Committee agenda and other pertinent data arc open and available for inspection in the office of Strategic Planning (575-8268), 125 West Mountain Street, Fayetteville, Arkansas. All interested parties are invited to review the materials. a� ve�eviile Ordinance Review Committee Meeting of January 20, 2009 THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE ARKANSAS www.accessfayeneville.org TO: Ordinance Review Committee FROM: Karen Minkel, Strategic Planning and Internal Consulting Director DATE: January 14, 2010 SUBJECT: Business Registry and License Program ADM 09-3273: Administrative Item (Business Registry and License Program): Submitted by Strategic Planning Staff to forward an ordinance adding Chapter 118 Business Registry and Licenses to the Fayetteville City Code with a recommendation for approval. BACKGROUND Strategic Planning staff began researching the feasibility of a business registry program at the request of Alderwoman Shirley Lucas and the Fayetteville Chamber of Commerce due to a lack of publicly accessible data about businesses located within City boundaries. This lack of data negatively affects the City's ability to measure economic development performance, ensure public safety and enforce code compliance and tax payment. Economic Development: The lack of data prevents economic development organizations from providing statistics on job growth and business sector growth and ultimately providing meaningful economic performance measures. Some of these measures include new jobs created and new businesses opened. Without a systematic method for collecting this information, confidence in the accuracy of the measures is compromised. Public Safety: The lack of data also contributes to inefficiencies and public safety concerns. The Central Dispatch Division, the Fire Marshal's Office and the Arkansas Department of Health all spend significant time attempting to track new business openings, moves and re-namings. In addition, the City lacks information on the storage of hazardous materials and installation of fire suppression systems. The accuracy of this information is crucial for responding to emergencies safely, effectively and efficiently. Law Enforcement: A business registry and license program will also assist the City Prosecutor's Office in addressing code and tax violations. Requiring a business license will provide accurate information and additional leverage for the City Prosecutor's office in resolving code and tax violations before they result in a warrant or criminal summons. Methodology Multiple divisions and departments contributed to the input and review process of developing a proposal that accomplished the goals outlined above and remained a cost -recovery model only. The project team included the Chief of Staff, Finance Director, Internal Auditor, City Clerk and representatives from Accounting, City THE CITY OF FAYETTEVILLE, ARKANSAS Prosecutor's Office, Community Services, Planning, Fire Marshal's Office, Central Dispatch, Information Technology and Billing and Collections. The team provided input and critiqued all the models used to demonstrate how the City would manage the process and the time and cost estimates. DISCUSSION A full outline of the methodology and ordinance components is included in the attached report. Below is a summary of the major requirements. Who Must Register: All businesses, institutions, corporations, LLCs, LLPs, partnerships, nonprofit associations, sole proprietorships or other non-governmental entities with a business within the Fayetteville city limits will have to register and obtain a license. For example, an apartment management company and home daycare provider would have to register. An individual who rents two properties and is not an LLC or LLP would not. Any person having more than one place of business within the city would obtain a license for each business location. Program Start Date: The ordinance designates a renewal and application period between January 1 and February 28 each year, which indicates an official start date of January 3, 2011. Fee: A cost -recovery fee of $64 will be charged for a paper business application and $57 for an electronic application, which reflects the cost -savings to the City. New Businesses and Relocations: If a business or institution applies for a new license after September 1, the fee through February 28 of the next year will be half the fee of an annual renewal. Penalties: Failure to submit a complete application by February 28 will result in the following fees. • Less than 30 days late: $70 (10%) • 31-60 days late: $77 (20%) • >60 days late: $96 (50%) Grounds for suspension or revocation: 1) Valid complaints that the Business License Holder is operating the business in a dangerously unsanitary or unhealthy manner, or in such a manner as to unreasonably and adversely affect the peace, health or safety of neighbors or other Fayetteville citizens. 2) The determination that the premises are a fire hazard or otherwise unsafe for occupancy because of violations of building, property maintenance or fire codes. 3) The business is delinquent in submitting Hotel, Motel and Restaurant or City alcohol tax forms or in payment of the City's Hotel, Motel and Restaurant taxes or any other city or state taxes or required fees. 4) The business is being operated in violation of any federal or state law or city ordinance or has had a necessary state or city license suspended or revoked. 5) The business license was procured through fraud or misrepresentation. Process for suspension or revocation: If the Development Services Director has reason to believe that grounds exist that could justify a suspension or revocation, the Director shall send a letter by first class mail and set a date for a due process hearing, which will be conducted by the Chief of Staff. THE CITY OF FAYETTEVILLE, ARKANSAS Appeals process: If the Chief of Staff determines that the license shall be suspended or revoked, the license holder shall have ten days to submit a written appeal to the City Clerk's office. If an appeal is submitted, the appeal will be heard by the City Council and the City Council will make a final determination. If a written appeal is not submitted to the City Clerk's office during the ten-day period, the license owner automatically waives all rights to the appeal process. Enforcement: If a license is suspended or revoked and the business continues to operate, each day of operation will constitute a separate violation. The City may withhold all municipal services, including water, sewer and solid waste services, if the business continues to operate with a suspended or revoked license. Comparison to Other Cities /Information accurate as ofJuly 2009 City Approximate Fee Late fee charges Other North Little $45-$1,440 25% penalty if <3 months Additional charges based on Rock overdue 50% penalty if >3 months overdue employee numbers and stock. Has a renewal period (Jan. 1 -Mar. 31) Hot Springs $50-$1,200 10% penalty after 30 days Springdale $20 Additional charges based on number of employees Lowell $50 10% penalty after 30 days 20% penalty after 60 days 50% penalty after 90 days Additional charges based on number of employees, number of seats (restaurants) or units (e.g. hotels). Rogers $50-$300 10% penalty after 30 days 20% penalty after 60 days 50% penalty after 90 days Additional charges based on number of employees, number of seats (restaurants) or units (e.g. hotels). Little Rock $75-$102,000 10% penalty after 30 days Additional charges based on (avg. $500) addt'l 10% penalty after 60 days number of employees and/or stock 30% penalty after 90 days Fort Smith $0 None Fayetteville $64 -paper <30 days overdue = $70 (10%) (proposed) $57 -electronic 31-60 days overdue = $77 (20%) >60 days = $96 (50%) RECOMMENDATION Staff recommends forwarding an ordinance adding Chapter 118 Business Registry and Licenses to the Fayetteville City Code to establish a Business Registry and License program with a recommendation for approval. ORDINANCE NO. AN ORDINANCE TO AMEND THE FAYETTEVILLE CODE BY ENACTING A CHAPTER TO CREATE A BUSINESS REGISTRY AND TO REQUIRE ANNUAL BUSINESS LICENSES FOR ALL BUSINESSES AND NON -PROFITS WITH LOCATIONS WITHIN FAYETTEVILLE WHEREAS, collecting accurate business and employee data will help the City better track business growth, employment and development; and WHEREAS, accurate reporting of new businesses entering Fayetteville and their addresses will assist Central Dispatch keeping their 911 information up-to-date; and WHEREAS, accurate reporting of flammable or explosive material storage will provide increased safety for Fayetteville Fire Fighters responding to building fires; and WHEREAS, the City's effort to collect overdue Hotel, Motel and Restaurant taxes will be assisted if the offending business could lose its business license for failing to promptly and completely remit to the City the taxes paid by its customers. 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 enacts Chapter 118 Business Registry and Licenses of the Fayetteville Code as shown below: "Chapter 118 Business Registry and Licenses "§118.01 Applicability. (A) General businesses. "All businesses, institutions, corporations, LLCs, LLPs, partnerships, non-profit associations or corporations, sole proprietorships or other non-governmental entities with a business address within the Fayetteville city limits shall be required to file for the City of Fayetteville Business Registry and License and conform to the requirements of this Chapter. (B) Religious entities. Churches and other religious institutions are exempt from this chapter unless they are performing functions like daycare that must be licensed by the state or that generate revenue upon which state sales or use taxes must be paid. The City Business License shall not be required for the religious entity but only for those functions that require a state license or upon which state sales or use taxes must be paid. "§118.02 Entry upon Business Registry and Issuance of Business License. "(A) Annual application required. "Every applicable business or other entity identified in §118.01 shall annually complete the Application For Business Registry And License (substantially as shown on Exhibit A and which can be administratively amended by the Mayor) and pay the appropriate fee as required by this chapter. "(B) Time for Application submittal. "Applications and annual renewals for existing business license holders shall be completed between January 1 and February 28 each year. Business licenses shall be issued for a fiscal year of March 1 to February 28. New businesses, businesses locating to Fayetteville or entities to which these provisions become applicable in the future shall register and obtain their business license within two months of their move into Fayetteville or commencement of activities. "(C) Fees. "(1) Annual fees to submit an Application For Business Registry and License shall be $64.00 if submitted by February 28, except that if a business registers electronically it shall receive a $7.00 credit against its annual fee and only be assessed $57.00. Applications submitted after the February 28 deadline shall incur a fee of $70.00 if submitted by March 31; $77.00 if submitted by April 30, and $96.00 if submitted thereafter. "(2) If a new business or entity registers and applies for a license after September 1, the fee for the business license through February 28 of the next year shall be $32.00 except that if a business registers electronically it shall receive a $7.00 credit against its partial year fee and only be assessed $25.00. "(D) Issuance of Business License. "The Director of Development Services or designee shall promptly issue a business license to any applicable business or entity which properly completes the Application For Business Registry and License, pays the proper fee, and is not ineligible for a business license because of prior suspension or revocation of the license, lack of a required state or city permit, or violation of state law or city ordinance. If the Director of Development Services initially refuses to issue a business license, the applicant shall be entitled to a due process hearing before the Chief of Staff concerning the grounds for refusal to issue the license. An applicant can appeal the Chief of Staff's decision to the City Council in the same manner prescribed for an appeal of the Chief of Staffs decision to suspend or revoke a business license. "§118.03 Suspension and Revocation of Business License "(A) Grounds That Could Support Suspension or Revocation of Business License. "(1) Valid complaints that the Business License Holder is operating the business in a dangerously unsanitary or unhealthy manner, or in such manner as to unreasonable and adversely affect the peace, health or safety of neighbors or other Fayetteville citizens. "(2) The determination that the premises are a fire hazard or otherwise unsafe for occupancy because of violations of building, property maintenance or fire codes. "(3) The business is delinquent in submitting Hotel, Motel and Restaurant or City alcohol tax forms or in payment of the City's Hotel, Motel and Restaurant taxes or any other city or state taxes or required fees. "(4) The business is being operated in violation of any federal or state law or city ordinance or has had a necessary state or city license suspended or revoked. "(5) The business license was procured through fraud or misrepresentation. "(B) Notice. "If the Director of Development Services has reason to believe that grounds exist that could justify the suspension or revocation of a business license, the Director shall mail a letter to the Business Mailing Address shown on the application by first class mail notifying the business owner of the possible grounds to suspend or revoke the license and setting a due process hearing in not less than five nor more than ten business days. The Director shall also telephone the business owner using the Business Phone number provided on the Application (as well as the Emergency Phone Number if the owner cannot be reached on the Business Phone number) and provide the same information as is within the letter. "(C) Conduct of the Due Process Hearing. "(1) The Chief of Staff shall provide a reasonable space for the due process hearing and shall receive evidence from city employees or others about the grounds to suspend or revoke the business license. "(2) The Business License Holder shall then be granted an opportunity to explain or provide evidence to rebutt any allegations and to show why the business license should not be suspended or revoked. "(3) After the Business License Holder has had a reasonable opportunity to explain his side, the Chief of Staff can do one of the following depending upon the Chief of Staff's judgment of the seriousness of any proven ground: "(i) Revoke the Business License. "(ii) Suspend the Business License for not more than Thirty (30) days. "(iii) Place the Business on probation status for not more than ninety (90) days on condition that the grounds causing the problems will be remedied by the business license owner and not be allowed to reoccur. If the business license owner complies with the probation, the probation status shall be lifted and no further action shall be taken. If the Chief of Staff determines that the business license owner has failed to correct the problems or new grounds for suspension or revocation have occurred, the Chief of Staff shall conduct a second due process hearing and consider all previous grounds as well as any new problems to determine whether or not the business license should be suspended or revoked. "(iv) Refuse to revoke or suspend the license which shall remain valid. Any complaint about events leading to the hearing shall not be considered again. 1118.04 Appeal To City Council "Any person or entity whose license has been suspended or revoked pursuant to §118.03 may appeal such suspension or revocation to the City Council by providing the City Clerk's Office with a written request for City Council review within ten business days of the issuance of the suspension or revocation. The City Council may then determine, after a public hearing in which the business license owner may present evidence and explanations, whether the business owner's license should be suspended for not more than thirty (30) days, revoked because of the grounds presented, or that no suspension or revocation is warranted. 4 "§118.05 Penalty "(A) Fines. "(1) No business or other entity who is required by this chapter to obtain a business license shall operate without having and displaying at the business a valid and current City of Fayetteville Business License. Operating without a license shall be a violation punishable by a fine of up to $250.00 per day of operation. "(B) City Services Termination. "(1) If a business or entity continues to operate without a valid and current City of Fayetteville Business License for a period of one week after notification by the Director of Development Services, the Mayor may order the withholding of all city services including water, sewer and solid waste for the business premises. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that this ordinance shall go into effect on January 3, 2011 to begin the issuance process of business licenses with the requirement that all affected entities shall have applied for the business registry and received their licenses by March 1, 2011. PASSED and APPROVED this 2"d day of February, 2010. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer 5 "EXHIBIT A" a'F vetleville THE CITY OF FAYETTEVILLE, ARKANSAS ARKANSAS www.accessfayetteville.org BUSINESS NAME: DEVELOPMENT SERVICES APPLICATION FOR BUSINESS REGISTRY AND LICENSE BUSINESS MAILING ADDRESS: BUSINESS STREET ADDRESS BUSINESS OWNER NAME: ADDRESS APPLICANT DRIVER'S LICENSE #: BUSINESS PHONE: PROPERTY PARCEL ID #: 765 - EMERGENCY PHONE # OWNER#2: NAME ADDRESS EMERGENCY PHONE# PRIMARY EMERGENCY CONTACT NAME: EMERGENCY PHONE # (If different than above): BUSINESS WEB ADDRESS: DATE BUSINESS OPENED/TO OPEN IN FAYETTEVILLE # OF EMPLOYEES: FULL TIME PART TIME FIRST 4 DIGITS OF NAICS CODE _ IS BUSINESS: MINORITY WOMAN VETERAN OWNED? (Optional -For data purposes only) DETAILED DESCRIPTION OF BUSINESS (A thorough description aids in faster application processing.): BUSINESS STATUS: NEW ANNUAL RENEWAL RELOCATING If relocating: Within Fayetteville From another city IS BUSINESS A SEXUALLY ORIENTED BUSINESS? YES NO If yes, please describe: 1S THE BUSINESS A HOME OCCUPATION? YES NO PC Approval date: IS BUSINESS A: BAR RESTAURANT LODGING LEASE OR OWN? LEASE OWN IF LEASING, BUILDING OWNER NAME: IS THE STRUCTURE NEW? YES NO If no, what was the previous use/business of the structure? IS THE STRUCTURE VACANT? YES NO If yes, how long: IS OUTDOOR MUSIC OR DANCE FLOOR PROPOSED? YES NO DOES THE BUILDING HAVE A FIRE SUPRESSION SYSTEM? YES NO IF YES, IS THERE AN ALARM? YES NO IS THERE OUTDOOR STORAGE OF MATERIAL AND/OR EQUIPMENT? YES NO If ycs, please describe: DO YOU STORE FLAMMABLE/EXPLOSIVE MATERIALS? YES NO If yes, note type & quantities: SQ. FT. OF TOTAL BUILDING: OF YOUR BUSINESS: # OF PARKING SPACES / HANDICAPPED (ADA) SPACES : / DO YOU SHARE PARKING WITH ANY OTHER BUSINESS? YES NO If yes, please describe: ADDITIONAL INFO TO ASSIST IN PROCESSING APPLICATION: I hereby certify that the above information is accurate and true to the best of my knowledge. APPLICANT SIGNATURE: DATE: APPLICANT NAME (PRINT): Business Registry and Licensing Program Prepared by the City of Fayetteville Strategic Planning and Internal Consulting Department 125 W. Mountain St. Fayetteville, Ar. 72701 479-575-8267 January 2010 Summary Strategic Planning staff began researching the feasibility of a business registry program at the request of Alderwoman Shirley Lucas and the Fayetteville Chamber of Commerce in March 2009. The following report outlines the benefits and associated costs of establishing and operating a business registry and licensing program and the relevant departmental responsibilities. A registry and licensing program will provide the following benefits: • timely and accurate economic performance data addressing job and industry growth; • accurate public safety data regarding location, fire suppression systems and the storage of hazardous materials; and • leverage for the City Prosecutor's office in pursuing tax and code violations. A three-step cost -recovery methodology determined that the expected cost of processing one business license is $63.60. This cost includes labor and materials and takes into account that some applications will be processed with a minimum of effort while others will need additional staff time to resolve outstanding issues. The methodology also differentiates between a paper application and an electronic application process; the electronic process will result in a cost -savings of $8.31, most of which can be passed on to the customer. The project team included: Don Marr, Chief of Staff; Jeremy Pate, Development Services Director; Paul Becker, Finance and Internal Services Director; Sondra Smith, City Clerk; Scott Huddleston, Information Technology Director; Marsha Hertweck, Accounting Director; Shelly Turberville, Accounting Manager; and Rainy Laycox, Billing and Collections Manager. The Police Department, Central Dispatch Division, Fire Department City Attorney, Community Services Division, GIS Division, Internal Audit and City Prosecutor's office provided additional feedback on the process and materials. Issue Page 2 of 7 The City of Fayetteville currently lacks publicly accessible data about businesses located within its boundaries. This lack of data negatively affects the City's ability to measure economic development performance, ensure public safety and enforce code compliance and tax payment. Economic Development: The lack of data prevents economic development organizations from providing statistics on job growth and business sector growth and ultimately providing meaningful economic performance measures. Some of these measures include new jobs created and new businesses opened. Without a systematic method for collecting this information, confidence in the accuracy of the measures will be compromised. Public Safety: The lack of data also contributes to inefficiencies and public safety concerns. The Central Dispatch Division spends significant time attempting to track new business openings, moves and re-namings. The Fire Marshal's office also needs this information in order to ensure that new businesses meet current fire codes. In addition, the City lacks information on the storage of hazardous materials and installation of fire suppression systems. The accuracy of this information is crucial for responding to emergencies safely, effectively and efficiently. The Arkansas Department of Health also lacks information about restaurants and food related businesses in Fayetteville, resulting in inefficiencies in its ongoing inspection program. Determining when businesses open, relocate or close also takes significant staff time that could be better spent providing inspection services, according to an interview with James Shumate, Arkansas Health Department Inspector. The haphazard process also increases the likelihood that a restaurant or other food service provider will slip through the cracks, which if a problem arises, could be detrimental to the health of Fayetteville's citizens and visitors. Law Enforcement: A business registry and license program will also assist the City Prosecutor's Office in addressing code and tax violations. An ordinance that requires a business license in order to conduct business in the City of Fayetteville will provide additional leverage for the City Prosecutor's office in resolving code and tax violations before they result in a warrant or criminal summons. Page 3 of 7 Methodology Staff determined the costs to the City through a three step process. Step one: Staff created a process flow chart that illustrates how staff would process an application, incorporating electronic and manual steps. This model also shows the average time it would take each staff member to complete a task. These time allotments were determined after conversations with staff members who would be responsible for the task or who complete similar tasks as part of their daily activities. Colors on the flow chart distinguish between departments. The model incorporates the current certificate of zoning review process, and most additional tasks occur in Development Services. The Accounting Division will review for HMR tax violations and the Fire Marshal's office will review new businesses. Step two: Staff determined the labor cost per minute using the weighted market salary, which includes benefits, for each staff member identified in the process model. The spreadsheet separated components of the process in order to identify the costs of a paper versus electronic application submittal as well as the initial start-up costs and follow-up costs if an application is unable to be processed. In addition, the spreadsheet calculates the costs associated with materials and mailings. The methodology assumes that there are at least 2,600 businesses in Fayetteville that would be required to register based on a survey completed in 2003 by the City that counted 2,595 businesses within the City limits. Step three: A decision tree diagram was utilized to determine the expected costs to the City. The diagram incorporates the probability of different events into the cost model, enabling an approximation of the expected costs of processing one license. Assumptions about the assigned probabilities were based on similar City processes and experiences. For example, initial online payments for utility bills averaged two percent upon initial rollout in 2002. Staff assumed this percentage would likely be greater in 2010 and predicted that approximately five percent of businesses would utilize online application and payment services. The Diagram also accounts for initial start up and ongoing costs, which include creating the online application and payment capabilities and annual notifications, respectively. The Diagram determined the following: 1) The total expected cost for processing one license is $63.60. 2) The completion of an online application results in a savings of $8.31 to the City, most of which can be passed on to the customer after covering the service charge associated with online payments. Page 4 of 7 Comparison to other Cities in Arkansas' Fayetteville is the only city in Arkansas with a population greater than 50,000 that does not require a business license. Springdale, Rogers, Lowell, Fort Smith, Siloam Springs, Benton, Cabot, Jacksonville, Hot Springs, North Little Rock, Little Rock, Pine Bluff, Sherwood and Eureka Springs all require a business license to conduct business within their city limits. Cities in Arkansas employ a wide range of methods to determine costs to the applicant. Most other cities charge a base fee depending on the type of business and then add costs based on the number employees and/or a percentage of total stock value. For example, Springdale charges a base fee of $20 and then an additional $2.50 for each employee up to 25 employees; the fee is an additional $1.00 for every employee after the first 25. Little Rock charges $200 plus 0.24% of stock. Table 1: The average fee for all the cities below except Springdale and Fort Smith are ereater than Favetteville's nronosed fee. City Fee Late fee charges Other North Little Rock $45-$1,440 25% penalty if <3 months overdue 50% penalty if >3 months overdue Additional charges based on employee numbers and stock. Also has a renewal period (Jan. 1 -Mar. 31) Hot Springs $50-$1,200 10% penalty after 30 days Springdale $20 Additional charges based on number of employees Lowell $50 10% penalty after 30 days 20% penalty after 60 days 50% penalty after 90 days Additional charges based on number of employees, number of seats (restaurants) or units (e.g. hotels). Rogers $50-$300 10% penalty after 30 days 20% penalty after 60 days 50% penalty after 90 days Additional charges based on number of The information provided in the table is accurate as of July 2009. Page 5 of 7 Program Structure Who Must Register All businesses, institutions, corporations, LLCs, LLPs, partnerships, nonprofit associations, sole proprietorships or other non-governmental entities with a business within the Fayetteville city limits will have to register and obtain a license. For example, an apartment management company and home daycare provider would have to register. An individual who rents two properties and is not an LLC or LLP would not. Any person having more than one place of business within the city shall obtain a license for each business location. Program Start Date The IT Division estimates that approximately six months will be needed to complete the electronic processing and online payment capabilities. The ordinance designates a renewal and application period between January 1 and February 28 each year, which indicates an official start date of January 3, 2011. General Requirements Fee: A cost -recovery fee of $64 will be charged for a paper business application and $57 for an electronic application. New Businesses and Relocations: If a business or institution applies for a new license after September 1, the fee through February 28 of the next year will be half the fee of an annual renewal. Penalties: Failure to submit a complete application by February 28 will result in the following fees. Page 6 of 7 employees, number of seats (restaurants) or units (e.g. hotels). Little Rock $75-$102,000 (avg. $500) 10% penalty after 30 days addt'l 10% penalty after 60 days 30% penalty after 90 days Additional charges based on number of employees and/or stock Fort Smith $0 None Fayetteville (proposed) $64 -paper $57 -electronic <30 days overdue = $70 (10%) 31-60 days overdue = $77 (20%) >60 days = $96 (50%) Program Structure Who Must Register All businesses, institutions, corporations, LLCs, LLPs, partnerships, nonprofit associations, sole proprietorships or other non-governmental entities with a business within the Fayetteville city limits will have to register and obtain a license. For example, an apartment management company and home daycare provider would have to register. An individual who rents two properties and is not an LLC or LLP would not. Any person having more than one place of business within the city shall obtain a license for each business location. Program Start Date The IT Division estimates that approximately six months will be needed to complete the electronic processing and online payment capabilities. The ordinance designates a renewal and application period between January 1 and February 28 each year, which indicates an official start date of January 3, 2011. General Requirements Fee: A cost -recovery fee of $64 will be charged for a paper business application and $57 for an electronic application. New Businesses and Relocations: If a business or institution applies for a new license after September 1, the fee through February 28 of the next year will be half the fee of an annual renewal. Penalties: Failure to submit a complete application by February 28 will result in the following fees. Page 6 of 7 • Less than 30 days late: $70 (10%) • 31-60 days late: $77 (20%) • >60 days late: $96 (50%) Grounds for suspension or revocation: 1) Valid complaints that the Business License Holder is operating the business in a dangerously unsanitary or unhealthy manner, or in such a manner as to unreasonably and adversely affect the peace, health or safety of neighbors or other Fayetteville citizens. 2) The determination that the premises are a fire hazard or otherwise unsafe for occupancy because of violations of building, property maintenance or fire codes. 3) The business is delinquent in submitting Hotel, Motel and Restaurant or City alcohol tax forms or in payment of the City's Hotel, Motel and Restaurant taxes or any other city or state taxes or required fees. 4) The business is being operated in violation of any federal or state law or city ordinance or has had a necessary state or city license suspended or revoked. 5) The business license was procured through fraud or misrepresentation. Process for suspension or revocation: If the Development Services Director has reason to believe that grounds exist that could justify a suspension or revocation, the Director shall send a letter by first class mail and set a date for a due process hearing, which will be conducted by the Chief of Staff. Appeals process: If the Chief of Staff determines that the license shall be suspended or revoked, the license holder shall have ten days to submit a written appeal to the City Clerk's office. If an appeal is submitted, the appeal will be heard by the City Council and the City Council will make a final determination. If a written appeal is not submitted to the City Clerk's office during the ten-day period, the license owner automatically waives all rights to the appeal process. Enforcement: If a license is suspended or revoked and the business continues to operate, each day of operation will constitute a separate violation. The City may withhold all municipal services, including water, sewer and solid waste services, if the business continues to operate with a suspended or revoked license. Page 7 of 7 *Business Registry Application Process B and Manager reconciles online payments (1:.5) • Data populates Hansen application. Office Manager enters data and checks for code viola ions. (1:2), (1:12) • Cashier processes check (1:15) Sr. Planner reviews zoning. (1:10) Planning Tech Development reviews for Services appropriate Director zoning and reviews and signs off or signs off Flags. electronically. (1:15) (1:3) Fire Marshal's office reviews and signs off or flags. (1:3) Office Manager sends out a due process hearing letter and calls if there is a flag. (1:5) Friday, December 18, 2009 Office Manager receives a request to mail the license. Office Manager prepares materials for hearing (1:.60) Office Manager mails the license electronically or manually. (1:3) Chief of Staff prepared for and conducts due process hearing. (1:120) Page 3