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.
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• 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.
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*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