HomeMy WebLinkAboutRPT 1a B.L. PROCEDURES 10-20-82DATE:
TO:
FROH:
S UBJ ECT:
October 20, 1982
REPORTS
No. 1
11-1-82
Inter-Corn
Honorable Mayor & City Council Members
Community Development Department
Business License Procedures
BACKGROUND
On July 1, 1982, the Community Development Department assumed the
responsibility of administering the City's Business License program. The
reasoning behind such a transfer was to create a "one-stop" system by which
a prospective business person could obtain information on zoning, building,
and fire code requirements, and business licenses. The business license
function was in the Finance Department for approximately three years after
being transferred from the City Clerk's office.
Due in part to a change in personnel in the Finance Department, the
business license system has been on a maintenance only status for the past
18 months. In other words, new licenses were processed and renewal notices
sent, but not actively followed-up. Nor had field operations been
implemented until July of this year.
The majority of staff time since July 1 has been dedicated to the updating
of files and records, filing of accumulated documents, and the collection
of delinquent fees.
Unfortunately, as a result of. the time allotted to the house cleaning
(which is now nearing completion), active enforcement procedures and
reorganizational efforts have suffered. However, the situation has now
become manageable and the operation of the system will take on a more
cohesive and comprehensive tone.
Basically, the procedure for obtaining a business license will be as
follows:
Applicant submits application and appropriate fee to the department and
is informed that payment is not authorization to operate. Actual
approval will be granted after review.
At the end of each day, all applications are review by Community
Development for zoning and as to the need of other departmental review
(i.e., fire, police, building).
e
Applicant is notified the next working day as to status. If there is no
need for additional departmental review, the license will be considered
issued. Maximum review period should be seven (7) working dayS.
Mayor & City Council
October 20, 1982
Page 2
4. Subsequent to verbal approval, all applicable information will be input
into the computer system and a business certificate sent to the
business.
5. Renewal notices will be sent approximately one month prior to expiration
date; two del iquency notices are sent after the "grace" period has
passed, if necessary.
DISCUSSION
The transfer and re-organization process has uncovered some problem areas
in terms of efficiency in the current system. In order to regulate,
process and enforce the business license ordinance in an efficient and
equitable manner, some changes need to be instituted both in code
amendments and administrative procedures.
Amendments ito the Business License sections of the City Code:
a. Clarification of "gray" areas in the code. For example, the fee
schedule as it relates to coin-operated machines versus amusement
facilties;
b. Eliminate the single expiration date. Instead, set up a system so
that [/4th of the licenses are due on January l, 1/4th due on April 1,
I/4th due on July 1 and 1/4th due on October [. By reduction of the
peak period mass of paperwork involved, the procedures would make the
system much more workable. Additionally, with limited staff, the field
enforcement could be coordinated with the quarterly system, thereby
establishing a pattern by which inspections could be made. Also, this
change would more evenly distribute revenue throughout the year.
c. Revision of Penalty Schedule. A gO-day grace period is entirely too
long. It is recommended that a 30-day grace period be imposed providing
more than: enough time to pay a del iquent license.
d. Revision of License & Permit Board to eliminate unnecessary staff
costs by scheduling routine items in a manner similar to the Zoning
Administrator. The duplication of reviews by the License & Permit Board
and the Planning Commission should be eliminated such as arcades
(already an Agency policy), live entertainment, large assemblages,
amublance service, etc.
2. Administrative Modifications
a. Alter the business license application to include a space to indicate
zoning. Also make other changes to the text to more clearly indicate
that the application is only an application and full review is required
prior to issuance and authorization to conduct business within the City.
Mayor & City Council
October 20, 1982
Page 3
b. Send only the one renewal notice complete with wording that indicates
the del iquency schedule and that no further notices will be sent. This
will greatly reduce costs in postage as well as computer and staff time.
The processes and changes indicated above will increase the efficiency of
the system and provide better service to business people in the City.
Details of some of the recommended changes have yet to be worked out and
the Council will be kept up to date if the proposed changes are to be
implemented.
CURRENT STATUS
On assumption of business licensing, staff had to resolve the status of
some 250 potentially deliquent license payments, unresolved from the end of
March, this year. Approximately 150 traced out as cessation of business or
change in ownership or name with a valid new license. Seventy deliquent
businesses have re-Instated themselves with penalties paid In the amount of
$2,288.00. Of the 30 remaining, final notices have been sent and six
referred to the City Attorney. Since some are apartment complexes, the
license and penalty fees amount to a sum in excess of $3,200.
The following breakdown of fees collected on a monthly basis indicates the
cyclical, or peak, nature of revenues received from the licensing process.
In 1981-82, 39% of the revenue came in two months (December and January).
The six-month period, November-April, accounted for 87.5% of revenue while
the other half of the year produced only 12.5%. Even though the $9,993
collected thus far is $4,338 ahead of the same period last year, half of
that difference represents penalty payments. For the first two weeks of
October, $1,212 in fees have been paid.
Business License. Fees Collected Monthly
Fiscal Year Fiscal Year
Month 1981-82 1982-83'
July $ 2,312.50
August 1,257.75
September 2,085.00
October 1,209.75
November 11,058.25
December 23,580.00
January 22,862.62
February 16,052.81
March 16,242.50
April 13,268.75
May 4,526.50
June 3,428.25
2,267.00
4,101.00
3,625.00
First Quarter $ 5,655.25
Full Year $ 117,885.00
* Through September, 1982
9,993.00