HomeMy WebLinkAboutOrdinance 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:
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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.
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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.
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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.
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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.
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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
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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.
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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
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EXHIBIT
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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
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Maor Mayor's Office
d
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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
