The URL can be used to link to this page

Home My WebLink AboutOrdinance 5347 ORDINANCE NO. 5347 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, all information will be compiled and collected within the Business Registry which will be available to the businesses and public; 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. 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 enacts Chapter 118 Business Registry and Licenses of the Fayetteville Code as shown below: Page 2 Ordinance No. 5347 "Chapter 118 Business Registry and Licenses "§118.01 Applicability. "(A) General businesses. "(1) All businesses, institutions, corporations, LLCs, LLPs, partnerships, non-profit associations or corporations, sole proprietorships or other non-governmental entities with a physical address or which operates a legally permitted home occupation within the Fayetteville city limits shall be required to file for the City of Fayetteville Business Registry and License. A covered business or entity with multiple physical addresses in Fayetteville must obtain a separate business license for each such business address. "(2) In addition, any person or non-governmental entity who has or should have a sales tax permit and operates out of a physical address within Fayetteville shall be required to file for the City of Fayetteville Business Registry and License. "(3) In addition, any person or non-governmental entity who is engaged in any trade or occupation which requires federal or state licenses and who operates out of a physical address within Fayetteville shall be required to file for the City of Fayetteville Business Registry and License. "(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. "(C) Minors exempt. "No individual under eighteen years of age shall be required to register or obtain a business license. Page 3 Ordinance No. 5347 "(D) Individual landlords renting less than three dwelling units exempt. "An individual landlord,not operating as a corporation, LLC, LLP, or other business entity, who rents out less than three dwelling units, and no commercial, industrial, or institutional unit, site or building shall be exempt from this chapter. "§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 September 1 and October 31 each year. Business licenses shall be issued for a fiscal year of November 1 to October 31. 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) Home based business. A resident conducting a non-traffic generating occupation,profession or business within the resident's dwelling unit who is registering for the first time shall pay an annual fee to submit an Application For Business Registry and License of$22.00 if submitted by October 31, except if the home based business owner registers electronically, the owner shall receive a$2.00 credit against the annual fee and pay only$20.00. 3 Page 4 Ordinance No. 5347 Applications submitted after the October 31 deadline shall incur a fee of$24.00 if submitted by November 30; $26.00 if submitted by December 31; and $30.00 if submitted thereafter. After an initial registration and receipt of a business license,the next year's renewal fee shall be$15.00 if timely paid. Otherwise, late payment fees shall be as assessed above. "(2) All other (non-home based) businesses. Annual fees to submit the business's first Application For Business Registry and License shall be $35.00 if submitted by October 31, except that if a business registers electronically it shall receive a$3.00 credit against its annual fee and only be assessed$32.00. Applications submitted after the October 31 deadline shall incur a fee of$38.00 if submitted by November 30; $41.00 if submitted by December 31, and $52.00 if submitted thereafter. After an initial registration and receipt of a business license, the next year's renewal shall be $15.00 if timely paid. Otherwise,the late payment fees shall be assessed as above. "(3) Partial year registration fee for new business. If a new business or entity registers and applies for a license after March 1,the fee for the business license through November 30 of the same year shall be $17.00 except that if a business registers electronically it shall receive a$2.00 credit against its partial year fee and only be assessed$15.00. "(D) Issuance of Business License. "(1) 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. "(2) The registration and business license is not transferable nor assignable. Upon the sale, merger or transfer of business ownership,the new owner must register and apply for a new business license within thirty days of the date of transfer or reopening of the business. 4 Page 5 Ordinance No. 5347 "(3) 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 Staff's decision to suspend or revoke a business license. "(E) Display of business license. "Every business and other entity receiving a business license shall prominently display the business license near any other licenses required for the business and issued by a government entity. The business license shall be displayed where customers or visitors entering the establishment will be able to view the 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. 5 Page 6 Ordinance No. 5347 "(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 rebut 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 or suspension or revocation have occurred, the Chief of Staff shall conduct a second due process hearing and consider all previous 6 Pagel Ordinance No. 5347 evidence 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. "§118.04 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. "§118.05 Penalty "(A) Fines. "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. "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 September 1, 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 November 1,2011. 7 Page 8 Ordinance No. 5347 PASSED and APPROVED this 7" day of September,2010. APPROVED: ATTEST: By: /✓ �_ By: Q�y�Q/L/N ►YI CM�� 6014ELD JO Mayor SONDRA E. SMITH, City Clerk/Treasurer �a _ •FAYETFEVILLE; %,9sS�RkANSP�O)=�4 G�ONiea°°° 8 EXHIBIT • . 8 � RYM—yiiie TE CITY OF FAYETTEVILLE,ARKANSAS N5A5 DEVELOPMENT SERVICES APPLICATION FOR BUSINESS REGISTRY AND LICENSE BUSINESS NAME- BUSINESS STREET ADDRESS- BUSINESS PHONE: _ BUSINESS MAILING ADDRESS PROPERTY PARCEL ID 1765- - BUSINESS OWNER NAME- EMERGENCY PHONE•I ADDRESS EMERGENCY PHONE#9 OTHER CONTACT OR OWNER'.NAME(REQUIRED) EMERGENCY PHONE ADDRESS EMERGENCY PHONE' PRIMARY EMERGENCY CONTACT NAME: EMERGENCY PHONE'(If different than above. Contact information will be used by the Fayetteville Police and Fire Departments at the business.locations. IT this information changes please contact the Fayetteville Police Department at(479)587-3555 BUSINESS WEB ADDRESS: EMAIL ADDRESS: DATE BUSINESS OPENED/TO OPEN IN FAYETTE MLLE 'OF EMPLOYEES FULL TIME PART TIME IS BUSINESS: MINORITY—WOMAN—VETERAN—OWNED? (Optional-Fordata purposes only) DETAILED DESCRIPTION OF BUSINESS(A thorough description aids in faster application procesingJ NUMBER OF RENTAL UNITS(If applicable. BUSINESSSTATUS NEW ANNUAL RENEWAL RELOCATING If relocating: Within Fayetteville From another city_ IS BUSINESS A SEXUALLY ORIENTED BUSINESS? YES NO if yes,please describe: IS 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_ LAO— IS THERE OUTDOOR STORAGE OF MATERIAL AND/OR EQUIPMENT?YES NO If yes,please describe: DO YOU STORE FLAMMABLE/EXPLOSIVE MATERIALS?YES_ONO 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: FIRST 4 DIGITS OF NAICS CODE --_— I hereby certify that the above information is accurate and true to the best of my knowledge. APPLICANT SIGNATURE: DATE: APPLICANT NAME(PRINT?. City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 6/15/2010 City Council Meeting Date Agenda Items Only Karen Minkel Strategic Planning Submitted By Division Department Action Required: ADM 09-3273(Business Registry and License Program): Submitted by Strategic Planning Staff to approve 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 in Fayetteville. Cost of this request Category/Project Budget Program Category I Project Name Account Number Funds Used to Date Program/Project Category Name Project Number Remaining Balance Fund Name Budgeted Item Budget Adjustment Attached '/z� �Y� 10 Previous Ordinance or Resolution# -Dlepartmen�o Dafe Cc Original Contract Date: none J '2�-1O Original Contract Number: ity Attorney Date 0. �.. .., S -U-Wb Finance and Internal Services Director Date Received in City E1Ea F� Clerk's Office 2-S le l.Vh Ael"' — Chie o S Date Fri oe Received in / Maor Mayor's Office d � Comments: to & '7, 24Aisee3 Jafluary--15,-2009 v JW Q'%.,¢n, 4& 5x0v( a+ G-�s-ro • �j,1 �� THE CITY OF FAYETTEVILLE,ARKANSAS y Y j 1 DEPARTMENT CORRESPONDENCE ARKANSAS CITY COUNCIL AGENDA MEMO To: City Council Thru: Don Marr, Chief of Staff From: Karen Minkel, Strategic Planning and Internal Consulting Director '{Z441, Date: May 26, 2010 Subject: ADM 09-3273: Administrative Item (Business Registry and License Program): Approval of 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 in Fayetteville. PROPOSAL: Strategic Planning staff began researching the feasibility of a business registry program in March 2009 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 and ensure public safety. s 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. In addition, the economic development team at the Chamber of Commerce has stated that knowing Fayetteville's business demographics will enable them to find complementary businesses for prospective companies, support retention and expansion and promote existing businesses. Generating this information currently is at best inefficient and, at worst, impossible. 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. This lack of information significantly hinders the Fire Marshal's goal of preventing hazardous situations. Anecdotal evidence indicates that the Fire Marshal's office stumbles across a handful of business establishments each year after they have opened or just days before opening that did not undergo a fire inspection. 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 Ordinance Review Committee discussed the proposed ordinance on January 20, March 3, March 24 and April 21 of 2010. The Committee voted 4-0 to forward the ordinance to the full City Council with neither a recommendation for approval nor denial. THE CITY OF FAYETTEVILLE,ARKANSAS 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 with a physical address or which operates a legally permitted home occupation within the Fayetteville city limits shall be required to apply for a license. Businesses with multiple physical locations would have to obtain a separate license for each address. Religious entities, minors, and landlords with less than three dwelling units and not operating as a corporation, LLC, or LLP shall be exempt. Program Start Date: The ordinance designates a renewal and application period between January 1 and February 28 each year, with an effective start date of January 3, 2011. Fee: A cost-recovery fee of$35 will be charged for a paper business application and $32 for an electronic application, which reflects the cost-savings to the City. Home based businesses will be charged a fee of$22.00 for a paper business application and $20.00 for an electronic application. This review process will replace the existing Certificate of Zoning review process, which currently costs $25. Renewal fees will be $15 for all businesses. 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: 10%late charge • 31-60 days late: 20% late charge • >60 days late: 50% late charge 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 THE CITY OF FAYETTEVILLE, ARKANSAS 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 Late fee charges Other r North Little $45-$1,440 25% penalty if <3 months Additional charges based on Rock overdue employee numbers and stock. Has a 50% penalty if >3 months renewal period (Jan. 1 -Mar. 31) overdue 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 Additional charges based on 20% penalty after 60 days number of employees, number of 50% penalty after 90 days seats (restaurants) or units (e.g. hotels). Rogers $50-$300 10% penalty after 30 days Additional charges based on 20% penalty after 60 days number of employees, number of 50% penalty after 90 days 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 $35 -paper 10% penalty if late less than 30 (proposed) $32 -electronic days 20% penalty after 30 days Home based 50% penalty after 60 days business fees: $22 -paper $20 -electronic RECOMMENDATION: Staff recommends that City Council approve 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 in Fayetteville. BUDGET IMPACT: This program is based on a cost -recovery model, which will make the program cost neutral. J ARKANSAS 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 Updated April 22, 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 $34.80. 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 $4.83, most of which can be passed on to the customer. In addition, the renewal license process will require less staff time, costing only $15.17. 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; 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. Page 2 of 8 Issue 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, 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. This lack of information significantly hinders the Fire Marshal's goal of preventing hazardous situations. Anecdotal evidence indicates that the Fire Marshal's office stumbles across a handful of business establishments each year after they have opened or just days before opening that did not undergo a fire inspection. 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 8 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. Separate models were utilized to determine renewal costs and costs for home based businesses. The models determined the following: 1) The total expected cost for processing one license is $34.80. 2) The completion of an online application results in a savings of $4.83 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 8 3) The total expected cost for processing one renewal application is $15.17. 4) The total expected cost for processing one home based business license is $22.49 for a paper application. 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 oreater than Faveffeville'c nrnnosed fee. City Fee Late fee chares Other North Little $45-$1,440 25% penalty if <3 months Additional Rock overdue charges based on 50% penalty if >3 months employee overdue 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 'The information provided in the table is accurate as of July 2009. Page 5 of 8 Lowell $50 10% penalty after 30 days Additional 20% penalty after 60 days charges based on 50% penalty after 90 days number of employees, number of seats (restaurants) or units (e.g. hotels). Rogers $50-$300 10% penalty after 30 days Additional 20% penalty after 60 days charges based on 50% penalty after 90 days number of employees, number of seats (restaurants) or units (e.g. hotels). Little Rock $75-$102,000 10% penalty after 30 days Additional (avg. $500) addt'l 10% penalty after 60 charges based on days number of 30% penalty after 90 days employees and/or stock Fort Smith $0 None Fayetteville $35 -paper 10% penalty if late less than Proposed renewal (proposed) $32 -electronic 30 days fee is $15.00 20% penalty after 30 days Home based 50% penalty after 60 days business fees: $22 -paper $20 -electronic Program Structure Who Must Register All businesses, institutions, corporations, LLCs, LLPs, partnerships, nonprofit associations, sole proprietorships or other non -governmental entities with a business with a physical address or which operates a legally permitted home occupation within the Fayetteville city limits shall be required to apply for a license. Businesses with multiple physical locations would have to obtain a separate license for each address. Religious entities, minors, and landlords with less than three dwelling units and not operating as a corporation, LLC, or LLP shall be exempt. Program Start Date The IT Division estimates that approximately six months will be needed to complete the electronic processing and online payment capabilities. The Page 6 of 8 ordinance designates a renewal and application period between January 1 and February 28 each year, with an effective start date of January 3, 2011. General Requirements Fee: A cost -recovery fee of $35 will be charged for a paper business application and $32 for an electronic application, which reflects the cost -savings to the City. Home based businesses will be charged a fee of $22.00 for a paper business application and $20.00 for an electronic application. This review process will replace the existing Certificate of Zoning review process, which currently costs $25. Renewal fees will be $15 for all businesses. 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. Posting: Each license shall be posted in a highly visible place where the business, occupation or profession is carried on, and the holder of such license shall exhibit such license to any designated agent or official of the city upon request. Transfer: A business license shall be nontransferable from one person to another nor from one location to another. Penalties: Failure to submit a complete application by February 28 will result in the following fees. • Less than 30 days late: (10%) • 31-60 days late: (20%) • >60 days late: (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. Page 7 of 8 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 8 of 8 —►Business Registry Application Process V Page 3 FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS KIT WILLIAMS, CITY ATTORNEY DAVID WHITAKER, ASST. CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE LEGAL DEPARTMENT TO: Mayor Jordan City Council CC: Don Marr, Chief of Staff Karen Minkel, Strategic Planning Director FROM: Kit Williams, City Attorney DATE: September 1, 2010 RE: Business Registry and License Ordinance revised to change start date to September 1, 2011 Pursuant to the City Council's request, I have made the numerous date changes needed to change the Business Registry and License Ordinance start date to September 1, 2011. This changes the fiscal year for licenses from the previous March 1st — February 28`x' to the proposed November ls` — October 31". Late payment dates have also been adjusted accordingly. Finally the effective date of the ordinance has been set at September 1, 2011. If the City Council wishes to move the effective date and fiscal year for the Business Registry and License ordinance, someone will need to move to amend the current ordinance before you to the new version which will be in your Final Agenda. Please remember my earlier memo of June 16, 2010 to you in which I reviewed the statutory law for enacting citywide Business Registry and License program to require "a two-thirds (2/3) vote of all members (of the City Council) elected thereto ...." A.C.A. §26-77-102. Thus to pass the Business Registry and License ordinance, six affirmative votes by City Council members are needed. The Mayor cannot vote on this ordinance. (Attached is a copy of my June 16, 2010 memo.) 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, all information will be compiled and collected within the Business Registry which will be available to the businesses and public; 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. 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 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. "(1) All businesses, institutions, corporations, LLCs, LLPs, partnerships, non-profit associations or corporations, sole proprietorships or other non -governmental entities with a physical address or which operates a legally permitted home occupation within the Fayetteville city limits shall be required to file for the City of Fayetteville Business Registry and License. A covered business or entity with multiple physical addresses in Fayetteville must obtain a separate business license for each such business address. "(2) In addition, any person or non -governmental entity who has or should have a sales tax permit and operates out of a physical address within Fayetteville shall be required to file for the City of Fayetteville Business Registry and License. "(3) In addition, any person or non -governmental entity who is engaged in any trade or occupation which requires federal or state licenses and who operates out of a physical address within Fayetteville shall be required to file for the City of Fayetteville Business Registry and License. "(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. "(C) Minors exempt. "No individual under eighteen years of age shall be required to register or obtain a business license. "(D) Individual landlords renting less than three dwelling units exempt. "An individual landlord, not operating as a corporation, LLC, LLP, or other business entity, who rents out less than three dwelling units, and no commercial, industrial, or institutional unit, site or building shall be exempt from this chapter. "§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 September 1 and October 31 each year. Business licenses shall be issued for a fiscal year of November 1 to October 31. 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) Home based business. A resident conducting a non -traffic generating occupation, profession or business within the resident's dwelling unit who is registering for the first time shall pay an annual fee to submit an Application For Business Registry and License of $22.00 if submitted by October 31, except if the home based business owner registers electronically, the owner shall receive a $2.00 credit against the annual fee and pay only $20.00. Applications submitted after the October 31 deadline shall incur a fee of $24.00 if submitted by November 30; $26.00 if submitted by December 31; and $30.00 if submitted thereafter. After an initial registration and receipt of a business license, the next year's renewal fee shall be $15.00 if timely paid. Otherwise, late payment fees shall be as assessed above. "(2) All other (non -home based) businesses. Annual fees to submit the business's first Application For Business Registry and License shall be $35.00 if submitted by October 31, except that if a business registers electronically it shall receive a $3.00 credit against its annual fee and only be assessed $32.00. Applications submitted after the October 31 deadline shall incur a fee of $38.00 if submitted by November 30; $41.00 if submitted by December 31, and $52.00 if submitted thereafter. After an initial registration and receipt of a business license, the next year's renewal shall be $15.00 if timely paid. Otherwise, the late payment fees shall be assessed as above. "(3) Partial year registration fee for new business. If a new business or entity registers and applies for a license after March 1, the fee for the business license through November 30 of the same year shall be $17.00 except that if a business registers electronically it shall receive a $2.00 credit against its partial year fee and only be assessed $15.00. "(D) Issuance of Business License. "(1) 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. "(2) The registration and business license is not transferable nor assignable. Upon the sale, merger or transfer of business ownership, the new owner must register and apply for a new business license within thirty days of the date of transfer or reopening of the business. "(3) 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 Staffs 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. "(E) Display of business license. "Every business and other entity receiving a business license shall prominently display the business license near any other licenses required for the business and issued by a government entity. The business license shall be displayed where customers or visitors entering the establishment will be able to view the 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 rebut 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 Staffs 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 or suspension or revocation have occurred, the Chief of Staff shall conduct a second due process hearing and consider all previous evidence 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. "§118.04 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. "§118.05 Penalty "(A) Fines. "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. a "(B) City Services Termination. "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 September 1, 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 November 1, 2011. PASSED and APPROVED this 7`h day of September, 2010. APPROVED: By: ATTEST: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS KIT WILLIAMS, CITY ATTORNEY DAVID WMTAKER, ASST. CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE LEGAL DEPARTMENT TO: Lioneld Jordan, Mayor City Council CC: Don Mart, Chief of Staff Karen Minkel, Strategic Planning Director FROM: Kit Williams, City Attorney DATE: June 16, 2010 RE: Two-thirds vote of all members elected to the City Council needed to pass Business Registry and License Ordinance I believe the Business Registry and License Ordinance is controlled by A.C.A. §26-77-102 Authority to tax or license businesses. "Any city council ... shall have the power to enact, by a two-thirds (2/3) vote of all members elected thereto, ordinances requiring any person, firm, individual, or corporation who shall engage in, carry on, or follow any trade, business, profession, vocation, or calling, within the corporate limits of the city or town, to pay a license fee or tax ...." I believe that the statute's use of the "fee or tax" phrase clearly expresses the legislative intent to grant two kinds of authorities to cities. The first is to license businesses, and the second is to tax businesses. The statute clearly gives a city the right to require "any person, firm, individual or corporation ... to pay a license fee or tax ...." Id. (emphasis added) There is a clear and well established legal difference between a fee (an amount of money to offset the administrative costs of a city program or service) and a tax (a revenue generating exaction). "The distinction, between a tax and a fee is that government imposes a tax for general revenue purposes, but a fee is imposed in the government's exercise of its police powers." Harris v. City of Little_ Rock, 344 Ark. 95, 40 S.W. 3rd 214, 221 (2001) (citations omitted). When the legislature chose to authorize a city to require payment of "a license fee or tax", it must have intended to grant authority to cities to require payment of business license fees as well as occupational taxes through this statute. "In construing a statute, we will presume that the General Assembly, in enacting it, possessed the full knowledge of the constitutional scope of its powers, full knowledge of prior legislation on the same subject, and full knowledge of judicial decisions under preexisting law. Bunch v. State, 344 Ark. 730, 43 S.W. 3d 132,136 (2001) (citations omitted) Because the legislature is presumed to have full knowledge of the distinction between "a license fee or tax", it must have intended this statute's requirements to apply to both a business license fee ordinance as well as a business license tax ordinance. Indeed, the Arkansas Supreme Court held "that the authority to impose an occupation licensing fee is expressly delegated to the City by the legislature under (the prior codification of A.C.A. §26-77-102) ...." City of Mountain Home v. Drake, 281 Ark. 336, 663 S.W. 2d 738, 739 (1984). The Arkansas Supreme Court has long and repeatedly held that certain common sense rules should be used when interpreting a statute or ordinance. 2 "The basic rule of statutory construction is to give effect to the intent of the legislature. Where the language of a statute is plain and unambiguous, we determine legislative intent from the ordinary meaning of the language used. In considering the meaning of a statute, we construe it just as it reads, giving the words their ordinary and usually accepted meaning in common language. We construe the statute so that no word is left void, superfluous or insignificant, and we give meaning and effect to every word in the statute, if possible. CitiFinancial Mortgage Co., Inc. v. Matthews, 372 Ark. 167, 271 S.W. 3rd 501, 506 (2008). Although A.C.A. §26-77-102 clearly authorizes the City Council to enact a business license ordinance, there could be a question whether this very inclusive business registry and license ordinance, which is applicable to all non -governmental businesses and entities in Fayetteville, could be enacted under the more general police power statutes instead of A.C.A. §26-77-102.. I do not believe this would legally be allowed by the Courts. "We have long held that a general statute must yield when there is a specific statute involving particular subject matter." Daimler Chrysler Services, Inc. v. Weiss, 360 Ark. 188,200 S.W. 3rd 405,410 (2004). "Further, it is blackletter law for statutory construction to give effect to the specific statute over the general." Searcy Farm v. Merchants & Planters Bank, 369 Ark. 487, 256 S.W. 3d 496, 501 (2007). Since this state statute clearly involves the particular subject matter of a city-wide business licensing program, our ordinance must be enacted according to its requirements. 9 Therefore, we must follow the requirements of A.C.A. 26-77-102 (a) to legally enact the Business Registry and License Ordinance. This statute requires "a two-thirds (2/3) vote of all members elected thereto" which refers back to "city council." This is virtually identical language to what is found in Amendment 7 to the Arkansas Constitution as what is needed to repeal an initiated Act " two-thirds of all the members elected to ... the City Council ...." This language has been interpreted by the Arkansas Supreme Court to exclude the Mayor from the right to vote on such repeal (or any emergency clause). "The court found that the mayor was not an elected member of the City Council but only an ex -officio member by virtue of his executive position and therefore his vote could not be used in amending or repealing any part of an initiated act, and we concur." Thompson v. Mounts, 282 Ark. 524, 669 S.W. 2d 471, 474 (1984). Because this statute uses the "members elected" to the City Council language, Mayor Jordan is prevented by A.C.A. §26-77-102 (a) from voting on this Business Registry and License Ordinance. CONCLUSION In order to pass, the Business Registry and License Ordinance will need six affirmative votes from the members elected to the Fayetteville City Council. FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS KIT WILLIAMS, CITY ATTORNEY DAVID WHITAKER, ASST. CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE LEGAL DEPARTMENT TO: Sondra Smith, City Clerk FROM: Kit Williams, City Attorney DATE: June 16, 2010 RE: Business Registry and License Ordinance Attached please find the corrected version of the ordinance which should be substituted for the version used in the June 15th Agenda. I found four minor errors in the ordinance as I read it aloud to the City Council and public last night. I did read it correctly. The errors that I caught and have now been corrected were: (1) Lack of "NOW, THEREFORE" after the Whereas clauses and before "BE IT ORDAINED ..." (2) § 118.03 (C)(iii): omission of "evidence" after "consider all previous" near the end of (iii) on page 7. (3) §118.05 Penalty Improper use of subsection (1) under both (A) and (B) when there was no subsection (2). Both "(1)"s have been deleted. These are all "scriveners errors" that do not change the meaning or substance of the ordinance and thus do not need City Council action, but can be administratively corrected. Please discard the incorrect version. 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, all information will be compiled and collected within the Business Registry which will be available to the businesses and public; 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. 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 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. "(1) All businesses, institutions, corporations, LLCs, LLPs, partnerships, non-profit associations or corporations,sole proprietorships or other non -governmental entities with a physical address or which operates a legally permitted home occupation within the Fayetteville city limits shall be required to file for the City of Fayetteville Business Registry and License. A covered business or entity with multiple physical addresses in Fayetteville must obtain a separate business license for each such business address. "(2) In addition, any person or non -governmental entity who has or should have a sales tax permit and operates out of a physical address within Fayetteville shall be required to file for the City of Fayetteville Business Registry and License. "(3) In addition, any person or non -governmental entity who is engaged in any trade or occupation which requires federal or state licenses and who operates out of a physical address within Fayetteville shall be required to file for the City of Fayetteville Business Registry and License. "(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. "(C) Minors exempt. "No individual under eighteen years of age shall be required to register or obtain a business license. 2 "(D) Individual landlords renting less than three dwelling units exempt. "An individual landlord, not operating as a corporation, LLC, LLP, or other business entity, who rents out less than three dwelling units, and no commercial, industrial, or institutional unit, site or building shall be exempt from this chapter. "§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) Home based business. A resident conducting a non -traffic generating occupation, profession or business within the resident's dwelling unit who is registering for the first time shall pay an annual fee to submit an Application For Business Registry and License of $22.00 if submitted by February 28, except if the home based business owner registers electronically, the owner shall receive a $2.00 credit against the annual fee and pay only $20.00. Applications submitted after the February 28 deadline shall incur a fee of $24.00 if submitted by March 31; $26.00 if submitted by April 30, and $30.00 if submitted thereafter. After an initial registration and receipt of a business license, the next year's renewal fee shall be $15.00 if timely paid. Otherwise, late payment fees shall be as assessed above. "(2) All other (non -home based) businesses. Annual fees to submit the business's first Application For Business Registry and License shall be $35.00 if submitted by February 28, except that if a business registers electronically it shall receive a $3.00 credit against its annual fee and only be assessed $32.00. Applications submitted after the February 28 deadline shall incur a fee of $38.00 if submitted by March 31; $41.00 if submitted by April 30, and $52.00 if submitted thereafter. After an initial registration and receipt of a business license, the next year's renewal shall be $15.00 if timely paid. Otherwise, the late payment fees shall be assessed as above. "(3) Partial year registration fee for new business. 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 $17.00 except that if a business registers electronically it shall receive a $2.00 credit against its partial year fee and only be assessed $15.00. "(D) Issuance of Business License. "(1) 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. "(2) The registration and business license is not transferable nor assignable. Upon the sale, merger or transfer of business ownership, the new owner must register and apply for a new business license within thirty days of the date of transfer or reopening of the business. n "(3) 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 Staff's decision to suspend or revoke a business license. "(E) Display of business license. "Every business and other entity receiving a business license shall prominently display the business license near any other licenses required for the business and issued by a government entity. The business license shall be displayed where customers or visitors entering the establishment will be able to view the 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 "(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 rebut 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 or suspension or revocation have occurred, the Chief of Staff shall conduct a second due process hearing and consider all previous evidence 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. "§118.04 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. "§118.05 Penalty "(A) Fines. "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. "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 4th day of May, 2010. APPROVED: By: LIONELD JORDAN, Mayor By: ATTEST: SONDRA E. SMITH, City Clerk/Treasurer FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS KIT WILLIAMS, CITY ATTORNEY DAVID WHITAKER, ASST. CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE TO: Lioneld Jordan, Mayor City Council CC: Don Marr, Chief of Staff Karen Minkel, Strategic Planning Director FROM: Kit Williams, City Attorney DATE: June 16, 2010 LEGAL DEPARTMENT RE: Two-thirds vote of all members elected to the City Council needed to pass Business Registry and License Ordinance I believe the Business Registry and License Ordinance is controlled by A.C.A. §26-77-102 Authority to tax or license businesses. "Any city council ... shall have the power to enact, by a two-thirds (2/3) vote of all members elected thereto, ordinances requiring any person, firm, individual, or corporation who shall engage in, carry on, or follow any trade, business, profession, vocation, or calling, within the corporate limits of the city or town, to pay a license fee or tax ...." I believe that the statute's use of the "fee or tax" phrase clearly expresses the legislative intent to grant two kinds of authorities to cities. The first is to license businesses, and the second is to tax businesses. The statute clearly gives a city the right to require "any person, firm, individual or corporation ... to pay a license fee or tax ...." Id. (emphasis added) There is a clear and well established legal difference between a fee (an amount of money to offset the administrative costs of a city program or service) and a tax (a revenue generating exaction). "The distinction between a tax and a fee is that government imposes a tax for general revenue purposes, but a fee is imposed in the government's exercise of its police powers." Harris v. City of Little Rock, 344 Ark. 95, 40 S.W. 3rd 214, 221 (2001) (citations omitted). When the legislature chose to authorize a city to require payment of "a license fee or tax", it must have intended to grant authority to cities to require payment of business license fees as well as occupational taxes through this statute. "In construing a statute, we will presume that the General Assembly, in enacting it, possessed the full knowledge of the constitutional scope of its powers, full knowledge of prior legislation on the same subject, and full knowledge of judicial decisions under preexisting law. Bunch v. State, 344 Ark. 730, 43 S.W. 3d 132,136 (2001) (citations omitted) Because the legislature is presumed to have full knowledge of the distinction between "a license fee or tax", it must have intended this statute's requirements to apply to both a business license fee ordinance as well as a business license tax ordinance. Indeed, the Arkansas Supreme Court held "that the authority to impose an occupation licensing fee is expressly delegated to the City by the legislature under (the prior codification of A.C.A. §26-77-102) ...." City of Mountain Home v. Drake, 281 Ark. 336, 663 S.W. 2d 738, 739 (1984). The Arkansas Supreme Court has long and repeatedly held that certain common sense rules should be used when interpreting a statute or ordinance. 2 "The basic rule of statutory construction is to give effect to the intent of the legislature. Where the language of a statute is plain and unambiguous, we determine legislative intent from the ordinary meaning of the language used. In considering the meaning of a statute, we construe it just as it reads, giving the words their ordinary and usually accepted meaning in common language. We construe the statute so that no word is left void, superfluous or insignificant, and we give meaning and effect to every word in the statute, if possible. CitiFinancial Mortgage Co., Inc. v. Matthews, 372 Ark. 167, 271 S.W. 3rd 501, 506 (2008). Although A.C.A. §26-77-102 clearly authorizes the City Council to enact a business license ordinance, there could be a question whether this very inclusive business registry and license ordinance, which is applicable to all non -governmental businesses and entities in Fayetteville, could be enacted under the more general police power statutes instead of A.C.A. §26-77-102. I do not believe this would legally be allowed by the Courts. "We have long held that a general statute must yield when there is a specific statute involving particular subject matter." Daimler Chrysler Services, Inc. v. Weiss, 360 Ark. 188, 200 S.W. 3rd 405,410 (2004). "Further, it is blackletter law for statutory construction to give effect to the specific statute over the general." Searcy Farm v. Merchants & Planters Bank, 369 Ark. 487, 256 S.W. 3d 496,501 (2007). Since this state statute clearly involves the particular subject matter of a city-wide business licensing program, our ordinance must be enacted according to its requirements. 3 Therefore, we must follow the requirements of A.C.A. 26-77-102 (a) to legally enact the Business Registry and License Ordinance. This statute requires "a two-thirds (2,/3) vote of all members elected thereto" which refers back to "city council." This is virtually identical language to what is found in Amendment 7 to the Arkansas Constitution as what is needed to repeal an initiated Act " two-thirds of all the members elected to ... the City Council ...." This language has been interpreted by the Arkansas Supreme Court to exclude the Mayor from the right to vote on such repeal (or any emergency clause). "The court found that the mayor was not an elected member of the City Council but only an ex -officio member by virtue of his executive position and therefore his vote could not be used in amending or repealing any part of an initiated act, and we concur." Thompson v. Younts, 282 Ark. 524, 669 S.W. 2d 471, 474 (1984). Because this statute uses the "members elected" to the City Council language, Mayor Jordan is prevented by A.C.A. §26-77-102 (a) from voting on this Business Registry and License Ordinance. CONCLUSION In order to pass, the Business Registry and License Ordinance will need six affirmative votes from the members elected to the Fayetteville City Council. y1 FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS KIT WILLIAMS, CITY ATTORNEY DAVID WHITAKER, ASST. CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE TO: Mayor Jordan City Council CC: Don Marr, Chief of Staff Karen Minkel, Strategic Planning Director FROM: Kit Williams, City Attorney DATE: May 28, 2010 IL LEGAL DEPARTMENT RE: Business Registry and License Ordinance referral to City Council After at least four Ordinance Review Committee meetings and one meeting conducted by Eva Madison through her position with Fayetteville Forward, the Ordinance Review Committee has agreed that the ordinance they are forwarding to you is in its preferred form and content. The Ordinance Review Committee neither recommended approval nor denial of the proposed Business Registry and License Ordinance, but wanted to present it to the full City Council for further public comment and final decision. This ordinance is designed to require virtually every person or nongovernmental entity conducting business or nonprofit work from a Fayetteville location to fill out an application, pay a fee, register for the City Business Registry, and obtain a business license to conduct business, professional or nonprofit activity in Fayetteville The proposed fee for the Business Registry application has been reduced from the initially proposed $64.00 to the currently proposed $35.00 for most businesses and nonprofits and to $22.00 for "home based businesses." The annual renewal has been dropped even further to $15.00 (less than a quarter of the initial proposal). I believe enacting the proposed ordinance is within the power and authority of the City Council. I take no position on the merits or drawbacks of establishing a business license requirement. BUSINESS LICENSE HISTORY IN FAYETTEVILLE The Fayetteville occupation license tax was imposed by the voters (3,013 for and 2,507 against) in an election on May 26, 1976. The license fee was $50.00 for each "professional"; $15.00 for each "non-professional employer", plus $6.00 for each employee (up to $500 for a business). Other independent workers (non -employees) .working 30 hours or more weekly were supposed to pay $15.00. On July 7, 1981, the City of Fayetteville Board of Directors unanimously passed a motion to approve a recommendation from the Board Finance Committee that stated in part: "The Board has reaffirmed, however, that the city will cancel the occupation license tax ... if the city -county sales tax passes." (Board of Directors meeting minutes) The sales tax passed and is still in effect today, On August 4, 1981, the Fayetteville Board passed Ordinance No. 2739 "An Ordinance Repealing The Fayetteville Occupation Tax." I was initially concerned that the efficient city staff might actually be able to administer the business registry and license program for less than the proposed $64.00 fee ($57.00 for internet application). I asked that the anticipated city savings (for 911 dispatch, etc.) be deducted from the administrative costs to ensure the City would not be making a "profit" on the business license fee which would legally change this fee into a tax. . City of Texarkana v. Hudgins Produce Company, 112 Ark. 17, 164 S.W. 739 (1914); Carpenter v. City of Little Rock, 101 Ark. 238,142 S.W. 163 (1911). The proposed fee now takes into account all anticipated savings for the City and has been reduced about 50% (and more than 75% for renewals). These lower fees ensure that there should be no successful legal challenges to the amount of the fee proposed by staff and approved by the Ordinance Review Committee. The Courts grant discretion to the City Council to fix a reasonable fee. City of Fayetteville v. Carter, 52 Ark. 301,12 S.W. 573 (1889). atsej ORDINANCE NO. AN ORD AN BY ENACtI REGISTRY LICENSES FOR LOCATIONS ' TO AMEND A CHAPTER TO REOL FA WHEREAS, collecting accurate b'tA better track business growth, employment WHEREAS, all information will be Registry which will be available to the busi FAYETTEVILLE CODE CREATE A BUSINESS ANNUAL BUSINESS NON -PROFITS WITH and employee data will help the City welovment: and and collected within the Business public; and WHEREAS, accurate reporting of 1ew businessb entering Fayetteville and their addresses will assist Central Dispatch ke ping their 911 iftfP<mation up-to-date; and WHEREAS, accurate reporting f flammable or explo 've material storage will provide increased safety for Fayettevi a Fire Fighters respondin to building fires; and WHEREAS, the City's effort Jo collect overdue Hotel, Motel akd Restaurant taxes will be assisted if the offending siness could lose its business lice e for failing to promptly and completely remit to the City the taxes paid by its custome BE IT ORDAINED J4Y THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSA . Section 1: That the Qty Council of the City of Fayetteville, Arkansas` enacts Chapter 118 Busines Registry and Licenses of the Fayetteville Code as below: "Chapter 118 Business Registry and Licenses "§118.01 Applicability. "(A) General businesses. "(1) All b inesses, institutions, corporatioij6, LLCs, LLPs, partnership non-profit associations or co orations, sole proprietorshi or other non-governmen,,t�l entities with a physical addres or which operates a le ally permitted home occupation withi the Fayetteville ci limits shall be required to file for the City dFayetteville Bi�iness Registry and License. A covered business � entity with1?mnultiple physical addresses in Fayetteville must o ain a se rate business license for each such business address. "(2) In addition, any pers or non -governmental entity who has or should have a sale to permit and operates out of a physical address withi aye ville shall be required to file for the City of Fayettevil Business\egistryd License. "(3) In addition, y person or mental entity who is engaged in any ade or occupaequires federal or state licenses d who operates sical address within Fayetteville all be required toCity of Fayetteville Business R gistry and License. "(B) Religious "Ch rches and other religious institutions are ex pt from this ch ter unless they are performing functions like thycare that iy(ust be licensed by the state or that generate revenu upon hich state sales or use taxes must be paid. The City thsiness License shall not be required for the religious entity but p1y for those functions that require a state license or upon wlu h state sales or use taxes must be paid. "(C) Minors exempt. "No individual under eighteen years of age shall be required to register or obtain a business license. "(D) Individual landlords renting less than three dwelling units exempt. "An individua` L or other business. units, and no cot building shall be "§118.02 Entry upon License. ndlord, not operating as a corl entity, who rents out less than industrial, or ins from this chapter. Registry and "(A) Annual application required. "Every applicable business o o shall annually complete the A License (substantially as shown administratively_amended by fee as required by this chapt r. "(B) Time for Application „(C) ion, LLC, LLP, e dwelling unit, site or of Business identified in §118.01 Exhibit A and which can be layor) and pay the appropriate "Applications and afnual renewals for �isting business license holders shall be c pleted between Janu ry 1 and February 28 each year. Busi ss licenses shall be issue for a fiscal year of March 1 to Fe nary 28. New businesses, b sinesses locating to Fayetteville r entities to which these provisi ns become applicable in the futp4 shall register and obtain their bu�kness license within two moyfhs of their move into Fayetteville or c mmencement of "(1) Home based business. A resident conducting a generating occupation, profession or business within te resident's dwelling unit who is registering for the first 'me shall pay an annual fee to submit an Application For Busines Registry and License of $22.00 if submitted by February 28, except if the home based business owner registers electronically, the owner shall receive a $2.00 credit against the annual fee and pay only $20.00. La, Applicatins submitted after the February 28 deadline hall incur a fee of $24.0Q if submitted by March 31% $26.00 if subfiuitted by April 30, and $30.0 if submitted thereafter. After an i . 'al registration and receipt o a business license, the next year enewal fee shall be $15.00 if timel aid. Otherwise, late paymerjIfees shall be as assessed above. "(2) All other (i business's first be $35.00 if sub registers electronically I annual fee and only be s after the February 28 de submitted by March 31; if submitted thereafter. business license, the ne> paid. Otherwise, the i1 based) businesses Annual fees to submit the ion For Busin s Registry and License shall y February 8, except that if a business shall rec ve a $3.00 credit against its i essed 32.00. Applications submitted a in hall incur a fee of $38.00 if if submitted by April 30, and $52.00 n initial registration and receipt of a �renewal shall be $15.00 if timely `ant fees shall be assessed as above. "(3) Partial year re stration fee for n' w business. If a new business or entity register and applies for a ' ense after September 1, the fee for the busi ess license through F ruary 28 of the next year shall be $17.0 except that if a business egisters electronically it shall receiv a $2.00 credit against its pa 'al year fee and only be assessed %45.00. "(D) Issuanc%f Business License. ( The Director of Development Services or d signee shall omptly issue a business license to any applicabI� business or entity which properly completes the Application Pir Business Registry and License, pays the proper fee, and is not 'neligible for a business license because of prior suspension or revoc�4ion of the license, lack of a required state or city permit, or violate n of state law or city ordinance. "(2) The registration and business license is not transferable nor assignable. Upon the sale, merger or transfer of business ownership, the new owner must register and apply for a new business license within thirty days of the date of transfer or reopening of the business. El "(3) If the Director of Development Services initially refuses to issue a business license, the applicant shall be entitled to a due process hea ing before the Chief of Staff concerti the grounds for refusal to isstxa the license. An applicant can ap al the Chief of Staff's decisio to the City Council in the same anner prescribed for an appeal o he Chief of Staff's decision t suspend or revoke a business license. "(E) Display of business "Every business and o r entity re iving a business license shall prominently display the siness cease near any other licenses required for the business is ed by a government entity. The business license shall be disp yed where customers or visitors entering the establishment it be able to view the business license. "§118.03 Suspension and Re ocation o Business License "(A) Grounds That Could pport Suspension r Revocation of Business License. "(1) Valid c mplaints that the Business L' ease Holder is operatingftie business in a dangerously un nitary or unhealthy manner, r in such manner as to unreasonab and adversely affect the pe ce, health or safety of neighbors or othe Fayetteville citiz . " 2) The determination that the premises are a fire zard or otherwise unsafe for occupancy because of violations\f building, property maintenance or fire codes. "(3) The business is delinquent in submitting Hotel, Mote nd Restaurant or City alcohol tax forms or in payment of the Ci '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 tkevi grounds exist that c�yl business license, the Mailing Address show notifying the business revoke the license and five nor more than ten telephone the business provided on the Application s well s the Emergency Phone Number if the owner cannot b rea ed on the Business Phone number) and provide the same ormation as is within the letter. )pment Services has reason t elieve that justify the suspension or r ocation of a !ctor shall mail a letter toxhe Business on the application by f' vner of the possible gIou a due �s days. using t st class mail nds to suspend or mg in not less than �r shall also Phone number "(C) Conduct of the Due Process "(1) The Chief of Staffs 1 provide reasonable space for the due process hearing ands 1 receive evid nce from city employees or others about the gro ds to suspend or evoke the business license. "(2) The Busines License Holder shall th be granted an opportunity to xplain or provide evidence"\o rebut any allegations and to show by the business license shoul not be suspended or revoked. "(3) ter the Business License Holder has had a Icpsonable opp rtunity to explain his side, the Chief of Staff c� do one of the following depending upon the Chief of Staff's judgihent 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 comp ' s with the probation, the probation tatus shall be lifted anno further action shall be taken If the Chief of Staff detekiines that the business licensfi owner has failed to correct the �coblems or new grounds # suspension or revocation ha a occurred, the Chief pf Staff shall conduct a second due pro ess hearing and co Sider all previous whether or not th� business licen should be suspended or revoked. "(iv) Refuse to revc remain valid. Any hearing shall not be "§118.04 Appeal To City Council "Any person or entity whose I pursuant to §118.03 may appe Council by providing the City or susp nd the license which shall iplai about events leading to the \Sid red again. has ltqen suspended or revoked L suspe sion or revocation to the City s Office ith a written request for City Council review within tph business days f the issuance of the suspension or revocation. The City Council ma then determine, after a public hearing in which a business license own\r may present evidence and explanations, whet$r the business owner's li nse should be suspended for not mope than thirty (30) days, revok d because of the grounds presented, 9# that no suspension or revocatiIcn is warranted. "§118.05 Penalty "(A) Fines. "(1)/No business or other entity who is required by t 's chapter to obtain a business license shall operate without having �pd splaying at the business a valid and current City of Fa etteville business License. Operating without a license shall be a 'olation punishable by a fine of up to $250.00 per day of operation. 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 VA week after notification by the Director of Development Services, the Mayor may or* the withholding of all city services including water, sewer ancPqolid waste for ¶e business premises." Section 2: That the City Counci of the ity of Fayetteville, Arkansas hereby determines that this ordinance shall go Yceved feet on January 3, 2011 to begin the issuance process of business licenses with uirement that all affected entities shall have applied for the business registry and their licenses by March 1, 2011. PASSED and APPROVED this 15th day of Jate, 2010. APPROVED: By: LIONELD JORDAN, Mayor 0 SONDRA E. City Clerk/Treasurer 3 Abs Opt z % /- 4- Page 1 of I Karen Minkel - business license conversation From: Terra Tots <terratots@gmail.com> To: <kminkel@ci.fayetteville.ar.us> Date: 6/17/2010 3:54 PM Subject: business license conversation CC: Jemmy Gawthorp <jerrmy@greenhousegrille.com>, Amy Robinson <amy@springlinegroup.com>, B Hembree <bhembree3@gmail.com> Hi Karen. I just wanted to follow up after our conversation at Terra Tots last week. My concern with, yet another, required small business license is the utter confusion on the part of the business owner. At this point, I feel like boycotting any other city, county, or state business "requirement" until a streamlined system is put in place for people opening/operating a business. Perhaps a checklist highlighting all the registration requirements would be handy. As a small business owner, I struggle with the current requirements since there is no easy way to know what we are supposed to register for. After three years in business, and almost a year of preparation prior to opening, I still discover random "requirements" that a small business owner is asked to complete. We worked with the Chamber when we opened in 2007, and worked very closely with the UofA Small Business Development Center, plus several months working with our SBA loan officer. Yet, there are still unknown licenses floating around that none of us knew about. In much of the articles I've read about the idea of the business license, the idea of making it easy on the city is mentioned several times. The city should turn it's focus on how to make this complicated system easier for the business owner. The business owner should get something in return. After all, the business owners are what help to rake in income for the city. Help us, please don't bombard us with yet another piece of paperwork... and another fee. I'm curious to know if the city has met with any business owners (small business owners) to get their input? Respectfully, Bernice Hembree TERRA TOTS natural parenting www.terra-tots.com file://C:\Documents and Settings\kminkel.000\Local Settings\Temp\XPgrpwise\4C1A4537... 6/29/2010 /'A Dhl QC/?i73 Karen Minkel - Business Registry From: "Stephen Davis" <sldavis@davisbusinessplanning.com> To: "Bobby Ferrell"<ward3_pos2@ci.fayetteville.ar.us> Date: 6/25/2010 1:25 PM Subject: Business Registry 6/26/10 Alderman Ferrell r Page 1 of 1 I want to express my support for the Business Registry Ordinance. My wife and I each own and operate a small business in Fayetteville and believe that the city of Fayetteville having a business registry will be of benefit to the community. The biggest benefit that we will derive from Fayetteville having a business registry requirement, in our opinion, is the periodic inspections that occur from the City's emergency personnel as they perform their routine checks. I had intended to be present for the City Council meeting when the final vote was to be taken on this ordinance; however, my wife and I will be out of town on a trip. Stephen L Davis Davis Business Planning, LLC 479-935-4572 sldavis@davisbus_inessplanning.com Davisbusinessplanning.com file://C:\Documents and Settings\kminkel.000\Local Settings\Temp\XPgrpwise\4C24AE6... 6/29/2010 NORTHWEST ARKANSAS NEWSPAPERS= Northwest Arkansas Democrat Gazette The Morning News of Springdale The Morning News of Rogers Northwest Arkansas Times Benton County Daily Record 212 North East Avenue, Fayetteville Arkansas 72701/ PO Box 1607, 72702 PHONE: 479-571-6421 AFFIDAVIT OF PUBLICATION RECEIVED OCT 01 2010 CITY OF FAYETTEVILLE CITY CLERK'S OFFICE I, Cathy Wiles, do solemnly swear that I am Legal Clerk of the Northwest Arkansas Newspapers LLC. Printed and published in Washington & Benton County, (Lowell), Arkansas and that from my own personal knowledge and reference to the files of said publication, the advertisement of: City of Fayetteville — Ordinance No 5347 September 16, 2010 Publication Charge : $ 466.92 Signed: __C' - Subscribed and •woorrn to before me This2-�"day of� % , 2010. Notary Public _r�k _)Mti__ LYNCH My Commission Expires: °tarV PUb11c-Arkansas NWash; nflton County n 2.6(, Q —Z Y Cemrnisslon Expires 10-28-2018 Commissian # 12368414 Do not pay from Affidavit, an invoice' .•�,�. U WtlANCE NO.5l2 AN ORDINANCE TO AMEND THE FAYETTVILLE HArTECOBYENACTING OfUeEtevffle AINTOCODEDE DA BUSINESS RF.OISTRYAND TO REQUIRF.ANNUAL BUSINESS LICENSES FORALL BUSINESSES AND NON -PROFITS WITh ARKANSAS LOCATIONS WITHIN FAYETTBVILLE WHEREAS, collecting accurate business and employee data will help the City better track business growth, employment and development; ead WHEREAS, all information will be compiled and collated within the Business Registry which will be available to the businesses and public; and WHEREAS, accumee reporting ofnew businesses entering Fayetteville and theiraddrestts will assist Central Dispatch keeping their 311 infnsmation up -iodate; and WHEREAS, accurate eepoding offlamtpable or explosive material smmge will provide increased safety for Fayeneville Fire Fighters responding to building fires; and WHEREAS, the City's effort to collect ovenhe 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 razes paid by its customers. - NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL Ole T'HE CITY OF FAYETTE V ILLE, ARKANSAS; IIS giioal: g m the City Council ofthe City of Fayetteville, Arkansas hereby enacts Chapter' Registry and Licenses of the Fayetteville Code as shown below: "Chapter 118 6minus Registry and Wceoxe ^§II8.01 Applicability. "(4) General businesses. "(1) Allbusinesses, institutions, cosporasiuhs, LLCa, LLPs, partnerships, -mm -profit associations orcorporetians,sole pmpriemrshipsorother non- governmental entities with a physical address or which operates a legally permitted home BusinesssccnpatipRei the Fayeteville city limits shall be required to 51e for the City of Payenevilla 6 airy and License. Acovered bmimss or entity with multiple physical addresses in Fayetteville mast obtain a separate business license for each such business address, permit and operates out ofa physical address within Fayetteville shallberequired to file forte Cary ofPayeneville Business Registry and License. _. "(3) In addition, any person omen-goveituleneal entity who is engaged in any trade or occupation which requires federal of state licenses and who operates out ofa physical address within Fayetteville shall he required to file for the City of Fayetteville Business Registry and License: "tat)Rdigiotu rarities' "Churches and.mher religious institetiens are exempt from this chapter unless they are perforaning functions like daycare that .,no be licensed by the state or thargenem¢ revenu<upon which state sales cruse taxes must be paid. The City Business License shall not be required forte religious entity but only for those con eons that require a stale license or upon which slate sales or use taxes must he paid. "(C) Minors exempt "No individual under eighteen years ofege shall be required to register or obtain s' business license. `(D) / do ideal land( Grrenting/earth I/tree thvellftsg units ervempt An individual landlord, not operating assc mention LLC LLP, or other business entity, who rents out teas than three dwelling units, and no consmcmraf, industrial, or institutional unit, site or building shall be exempt from this chapter. - "§118,02' Entry espaa Realness Registry sad Issuance of Business License (A) Anneal application required "Every applscable business or otherchary identified in §118.01 shall annually complete the inn be edmlmslmttvely amended b the Liccosa(subsmntsdly as sho ve on Exhibit Rand which Oa chapter y Mayor) and -pm' theappropiiate fee as required by "(B) TimejmApylirmlon.rubmittel. "Applications and annual renewals .for existing business license holders shell becompleted between September lend October 31 eachyeer, Bu inert licenses shall beissued fora fiscal year of November! to October 31. New businesses, businesses locating to Fayetteville orcndties to which these provisions become applicable in Ne;fidtme.shal insister and obtain their business license wiiidn two months of theh move into Fayetteville or commencement ofaclivitiea f(C) Fees (I) Home based badness Ares dent conducelnsatpn tmlfi:genemtmg occupation, shall hscion or business within the resident's dwelling unit who is mpistering for thefimttime mpa an an annual fee to submitApplication For Sassiness Registry and License of $22.00 if by0e50ber3L exceptifOxhonra based bosiness owner registers electronically the ermmshall receive r$200 credit against the annual ftt and pay only $2000. - APPlicationssubmitted after the October31 deadline shallinpm a fee of $24:00 ifsubminW by Novenber30; $2dW it'submitled by December 31; and:$30.b0 i£subnsitted themaflen.AReran initial registration end receipt ofa bssineas license, the neMvear's renewal fee shall be $1506if timely paid. Otherwise, late payment tees shall be as assessed above. 'Y2) All mhee le,,._r,.,,..." u_.._n ..._ .,".wpc.axcssea, of above. "(3) Petiafy reg&ereliorcje'ejm new busuress. Ifs new business or entity registers and applies for a livaec after March 1, the fee for the business license through Nosember30 of the same year shall be $Fl.00 except that ifs business registers electronically it shall receive a $2,00 credit against its partial yearFee aridonly be assessed 515.00. .. "(D). /wanner ofBusiness acenee. "(I)' The Director ofDevelopment Services or designee promptly issue a business license to any applicable business or entity whichpmperly complaten the Application For Business Registry and License, pays the proper fee, and is not inehgigle [m a huaineas license because of prior suspension or revocation of the license, lack ofa requiryH state or city permit, or violation of slate law orcity ordinance. '12) The registration and business license is not transferable nnr assignable. Upon the sale, merger or transfer of business ownership, the new ownermust mgisterand apply fora new business license within thirtydays ofthe date oflrnnshr ter reopening ofthe husiness. "(3) lfthe Director of Deviln,,..,..,. e,',.,.,, . "(E) Display ofhasiness license. "Every business and otber entity receiving a business license shall prominently display the bminess license near any other licenses required for the business mid issued by a gov.mnent entity. The business license shall be displayed where customers or visitors entering the estahlislvnent will be able to view the business license. "§11&03 Suspension and Revocations of Amines License "(A)Gmma' TlrmC'ould.Suppnn.Smps:nsion ar Rewrcvsioss fRusineav License. "(3) Valid complaints Ilat the Business License Holder is operating the business in a dangerously unsanitary or onhealihy manner, or in such manner as to unreasonable and adversely auk, the peace, health or safety ofneighbom or other Fayetteville citizens. "(2) The determination that the premises are a fire hasard or etherwise unsafe for occupancy because ofviolatieina of building, property maintenance or fire codes. "(3) The business is delinquent in submitting Hotel. Motel and Restaurant or City alcohol tax forma or in payment of the City's Hotel, Motel and Restaurant We, or any other city or stale taxes or required fees. "(4) The business is being operated in violation of miy federal or state law or city ordinance or hs had'a necessary state or city license suspended or revoked. "(5) -The business license wad procured though fraud or misrepresasnwwn the Ausinese Phone number psi ifthe owner xmmot be reached as is within the letter. _ "(C) C'o0duct of the Due Prue "(1) TheCbiefdfStaffslal receivsevidersce from city eml business license. "('a) The Business LicenseI evidence to rebut any allegalia revoked. "(3) After the Business Lie' Chief of Staff can do one of lb seriousness -of any proven groi "(i)Revoke th "(ii) Suspend I "0(i) Placeths condition that the gmmWs cat reasonable space for the due prueess hearing and shall others about theg.ends m suspend or revoke the again. presented, or that no suspension or revocation is wasreMed "§118.05Penalty which "(A) Ras' "No business or other entity veto is required by this chapter to obtain a burins license shalll opemle without having and diselayink dt the business a valid and current Cityof Fayetteville Business License. Operating wnhouta license shall be'a violation punishable by hncofup to $25000 per day. ofopem0on. Randall 2; That the City Council of the City of Faye0esile, Arkansas hereby detenuitms that this ordinance shall 6o into effect -on' September 1, 2011 m highs the issuance process of business licenses with the reguiremee that all affated entities shall have applied for the busmess registry and received their licenses by November 1, 2011. PASSED and APPROVED Our r day 9f September. 2010.. - APPROVED: ATIEST. By: By. LIONELD JORDAN; Mayor SONDRAE. SMITH, City Cler reamer