HomeMy WebLinkAboutCOW 2017-08-28 Item 4E - Ordinance/Resolution - TMC Chapter 5.04 "Licenses Generally" Amendment / 2018 Business License Fee ScheduleCOUNCIL AGENDA SYNOPSIS
Initials --------------------------------- I ITEAtiI NO.
Meetrn,g Date
Prepared by Mayor review Cotuzcil review
07/24/17
VCt
08/28/17
VC PIA
09/05/17
VC
❑ BidAward
g Date
Alt
❑ Public•I-learing
Mtg Date
ITEM INFORMATION
4.E.
147
STAFF SPONSOR: VICKY CARLSEN
ORICINrv_ AGI SNDA D,1TL: 7/24/17
AGENDA I1T,"M TITLE, A resolution and ordinance updating the business license fee schedule.
Cxi,l1 GORY ® Discussion
llltg Date 7/24 &
❑ Motion
tiftg Date
® Resolution
Mtg Date 9/5/17
® Ordinance
All Date 9/5/17
❑ BidAward
g Date
Alt
❑ Public•I-learing
Mtg Date
❑Other
Alt8128117 Date
SPONSOR ❑C'ouncil ❑Mayor ❑HR ❑DCD ®Einance ❑Fire ❑TS ❑P6R ❑Police ❑PW ❑Court
SP()NSOR'S Council is being asked at the August 28, 2017 Committee of the Whole meeting to consider
Su \rnl-'RY forwarding an ordinance and resolution updating the fee structure for business licenses to
the September 5 Regular Meeting for adoption.
RI?vIF?w,:D BY ❑ C.O.W. Mtg. ❑ CDN Comm ® Finance Comm. ❑ Public Safety Comm.
❑ Trans &Infrastructure ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DATE: 7/18 & 8/8/17 COMMI"I'TEE CHAIR: SEAL
RECOMMENDATIONS:
SPONSOR/ADMIN. Finance Department
COMMI"I��I- Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EXPI-NDITURI R13OUIRIa AMOUNT BUDGETED APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
7/24/17
Return to Finance Committee for additional discussion
8/28/17
9/5/17
MTG. DATE
ATTACHMENTS
8/28/17
Informational Memorandum dated 8/16/17
Draft Ordinance
Draft Resolution
Minutes from the Finance Committee Meeting of 8/8/17
9/5/17
147
City of Tukwila
Allan Ekberg, Mayor
TO:
Finance Committee
FROM:
Peggy McCarthy, Finance Director
BY:
Vicky Carlsen, Deputy Finance Director
CC:
Mayor Ekberg
DATE:
August 16, 2017
SUBJECT:
Calculation of Business License Fee
ISSUE
Our City Attorney's has recommended that the City change the way the business license fee is
calculated.
BACKGROUND
At the July 8, 2017, Finance Committee meeting, staff presented a draft ordinance and resolution
amending the business license fee structure and providing for a modest inflationary adjustment.
Staff recommended a combined rate for full-time employees of $70 and $50 for part-time
employees. Full-time has been defined as 30 hours or more per week. There was unanimous
approval to forward this item to the July 24, 2017 Committee of the Whole.
After discussion at the July 24, 2017, Committee of the Whole, council consensus existed to return
this item to the Finance committee for further discussion regarding the part-time fee
recommendation. This item was rescheduled for the Finance Committee on August 8, 2017.
On August 7, 2017, our City Attorney's Office notified staff that the City should consider changing
the manner in which the business license fee is calculated. Due to the late notice of this
recommendation, the Committee was briefed on this matter and there was consensus to bring
revised legislation to the August 22, 2017, Finance committee for review.
DISCUSSION
Pursuant to state law (RCW 35A.82.020), the City is permitted to charge a business license fee
for the purposes of generating revenue. Currently, the City charges a "Combined License Fee"
that contains a revenue generating fee, as well as a regulatory fee, both of which are based on a
calculation related to the number of 'lull time employee equivalent" ("FTE") employees employed
by the business. The City Attorneys' Office has recommended that the City eliminate the
regulatory component of the fee, in order to address changes in the law that have occurred since
the fee structure was adopted.
The revised ordinance and resolution reflect elimination of the regulatory component of the fee
(so that the fee is no longer a combination of both regulatory and revenue generating fees, and
solely a revenue generating fee), and rename the fee a "Business License Fee". The City is still
recommending a full-time employee rate of $70, and $50 for part-time employees.
149
INFORMATIONAL MEMO
Page 2
RECOMMENDATION
The Council is asked to approve the ordinance and resolution and consider this item at the August
28, 2017 Committee of the Whole meeting and subsequent September 5, 2017 Regular Meeting.
ATTACHMENTS
--Revised Draft Ordinance
--Revised Draft Resolution
150
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING VARIOUS ORDINANCES
AS CODIFIED IN TUKWILA MUNICIPAL CODE CHAPTER 5.04,
"LICENSES GENERALLY," TO REPLACE "FTE" WITH
"EMPLOYEE" IN RELATION TO THE BUSINESS LICENSE FEE
STRUCTURE AND TO ELIMINATE REFERENCE TO A
"COMBINED" BUSINESS LICENSE FEE; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City has analyzed current business license fees; and
WHEREAS, the City has received multiple public comments that the existing
business license and revenue generating regulatory license (RGRL) fee calculation
based on full-time equivalent (FTE) can be difficult to calculate correctly; and
WHEREAS, calculating the fee by "Empl
calculation process for the public and Citv sta
the fee
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. No Impact on 2017 Business Licenses. It is the City Council's
intention that the following amendments apply to Business Licenses issued by the City
W: Word Processing\Ordinances\Review business license fee structure strike-thru 8-14-17
:bjs Page 1 of 7
151
for 2018 and beyond, and have no impact on Business Licenses issued by the City for
2017.
Section 2. TMC Section 5.04.010 Amended. Ordinance Nos. 2496 §1, 2381 §1,
2356 §1, 2333 §1 and 2315 §1 (part), as codified at Tukwila Municipal Code (TMC)
Section 5.04.010, Subparagraph 10, are hereby amended to read as follows.-
5.04.010
ollows:
5.04.010 Definitions
..- -•
WON V
- - - - --
...- - - --
._
4410. "Employee" means and includes each of the following persons who are not
required by the City to have his/her/its own separate City of Tukwila business license:
a. Any person employed at any business who performs any part of their
duties within the City of Tukwila; and
ab. Any person who is on the business's payroll, and includes all full-time,
part-time, and temporary employees or workers; and
be Self_ employed norcnnc cele nrnnrieters e0wners, officers, managers,
and partners; and
Gd. Any other person who performs work, services or labor at the business
including, but not limited to, family members, regardless of whether they receive a
wage from the business. an GentraGtor whe may be exempt fr
rorI iroments to have a sepaFate City of Tukwila business linon6e
Emalovee is a unit of measure u
fe
Section 3. TMC Section 5.04.020 Amended. Ordinance Nos. 2496 §2, 2425 §1,
2381 §3, 2356 §2, 2333 §3 and 2315 §1 (part), as codified at TMC Section 5.04.020,
are hereby amended to read as follows:
5.04.020 Applications and fees required
A. Application Required. Any person desiring to establish or conduct any
business enterprise or undertaking within the corporate limits of the City shall first apply
to the Finance Department for a license to conduct such business. The application shall
be upon a form furnished by the Finance Department on which the applicant shall state
the company name and address; the nature of the business activity or activities in which
he/she desires to engage; the place where the business will be conducted; the number
of employees, whether full or part-time, on the payroll as of January 1, or, if a new
business, the number to be employed on the opening date; the Washington State
Unified Business Identifier (UBI) number; and other information pertaining to the
W: Word Processing\Ordinances\Review business license fee structure strike-thru 8-14-17
:bis Page 2 of 7
152
business as required by the City. Owners of residential rental property are not subject
to the application requirements in this chapter but shall adhere to the application
requirements in TMC Chapter 5.06.
B. Fee - General.
1. The application must be accompanied by the appropriate application fee in
accordance with the fee schedule adopted by resolution of the City Council. The
license fee for the annual license (CembiRed-Business License fee) issued under this
chapter shall be GaIGUlated determined per full eq uiyaleRt (FTE) o.,,pleyee based
on the total number of employees, and be GORIPFised ef a Business LiGeRse fee.
Iculated in accordance with the
fee schedule adopted by resolution of the City Council.
2. It will be the responsibility of the business to determine the total number of
FTE employees and, if required, demonstrate to the satisfaction of the Finance Director
that the GaIGUlation and information pertaining to the Combined -Business License fee
are is accurate. Businesses without a full year of operating history shall estimate the
number of €T€ employees that will be employed in a 12 -month period.
C. Minimum Fee. There shall be an annual minimum fee for a Combined
Business License, in
accordance with the fee schedule adopted by resolution of the City Council. An entity
subject to exemption pursuant to TMC Section 5.04.090 may not pay a GembiRed
Business License fee.
1. A business with less than $12,000.00 of annual gross receipts shall pay the
minimum license fee.
2. An entity engaging in some activities or functions that are exempt from the
Business License fee and some that are not exempt shall pay a
Anal -Business License fee based on the number of 1=T€ employees involved in the
functions or activities that are not exempt.
43 If a business has more than one location within the corporate limits of the
City, the t+red-Business License fee for each location shall be no less than the
minimum fee required under this chapter.
54. The GGFRbiRed-Business License fee for a business required to be licensed
under this chapter and not located within the City's corporate limits shall be safstlated
determined by multiplying the appropriate Business License fee by the number of €T€
employees working within the City's corporate limits, in accordance with the fee
W: Word Processing\Ordinances\Review business license fee structure strike-thru 8-14-17
:bjs Page 3 of 7
153
schedule adopted by resolution of the City Council. b4A +In no event shall the GepnbiRed
Business License fee be less than the minimum fee set forth in this chapter. If the
number of F -T€ employees is not known at the time of application or renewal of the
license, the business shall estimate the maximum number of FT€ employees they
anticipate working within the City's corporate limits at any time during fer the 12 -month
period subject to licensure.
45. Businesses doing business in the City that have no employees physically
working within the City's corporate limits shall pay the minimum fee required under this
chapter.
7-6. Businesses or organizations eligible for a temporary business license
pursuant to TMC Section 5.04.010 will be required to pay the minimum fee under this
chapter. This section shall not apply if the applicant is applying for a license related to
his/her participation at a City -sponsored event or as part of an event held at the Tukwila
Community Center. If the applicant is applying for a license related to his/her
participation at a City -sponsored event or as part of an event held at the Tukwila
Community Center, the applicant is required to complete all application requirements
and approvals required by the City's Parks and Recreation Department.
D. New Businesses. The CembiRed Business License fee for a new business
shall be based on the estimated number of €-T€ employees that will work in Tukwila for
a 12 -month period. If, during the first license year for a new business, the City
determines the actual number of employees is significantly different than the estimated
number identified by the business owner, the amount of the G.-,mbiRed Business
License fee will be recalculated for the new business. If the QembiRed
Business License fee is higher than the original GembiRed-Business License fee paid by
the business owner for the first license year, the business owner must pay the
difference to the City within 30 days after written notice of the amount owed is sent to
the business owner by the City.
E. Over -reporting of Employees Hours. In the event the business owner
miscounted the number of €T€ employees hours by an error factor of more than 15%
and paid an excess OernbiRed-Business License fee as a result, a business may
request that the City refund the overpayment. The request must be made in writing to
the Finance Department, and the City must receive the request and all supporting
documentation no later than 60 days after the end of the calendar year in which the
error was made. If the City is satisfied the business owner paid an excess GembiRed
Business License fee, the City will refund the excess amount paid to the business
owner.
F. Under -reporting of Employees Hours. If, at the time of license renewal, the
City determines the business owner under -reported the number of €=F€ employees
hows for the preceding year by an error factor of more than 15%, the business shall pay
the balance of the corrected GeMbiRed -Business License fee (calculated as the
difference between the paid GembiRed--Business License fee and the corrected
is inured -Business License fee) _ t9getheP With a PeRalty ef 2014 9f GUGh b@!aRGe due.
W: Word Processing\Ordinances\Review business license fee structure strike-thru 8-14-17
:bis Page 4 of 7
154
baIGIRGe The Finance Director shall mail written notice of the balance due to the
business owner, and the business shall pay the balance due to the City within 30 days
of the date the written notice is mailed by the City. A penalty of 20% of the balance due
will be applied if payment is not received within 30 days. if the Gity d9eS n„t
r cp—ua�-rv-�r�ccrv�
timely paymeRt, aR additiGRGII PeRalty shall be added, based HPGR the SGhedU!e fer late
Y771fYY1eRtC Set f9lth iR thiS nhapter
G. Payment by Draft or Check. Payment made by draft or check shall not be
deemed a payment of the GGMbiRed Business License fee unless and until the same
has been honored in the usual course of business, nor shall acceptance of any such
check or draft operate as a quittance or discharge of the GOMbiRed Business License
fee unless and until the check or draft is honored. Any person who submits a GJ �1k
Business License fee payment by check to the City, pursuant to the provisions of this
chapter, shall be assessed an NSF fee set by the Finance Director if the check is
returned unpaid by a bank or other financial institution for insufficient funds in the
account or for any other reason.
W: Word Processing\Ordinances\Review business license fee structure strike-thru 8-14-17
:bjs Page 5 of 7
155
W: Word Processing\Ordinances\Review business license fee structure strike-thru 8-14-17
:bjs Page 6 of 7
156
Section 6. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; or ordinance numbering
and section/subsection numbering.
Section 7. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 8. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force a
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:_
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
W: Word Processing\Ordinances\Review business license fee structure strike-thru 8-14-17
:bjs
Page 7 of 7
157
158
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF TUKWILA, WASHINGTON, REPEALING
RESOLUTION NO. 1875 AND ADOPTING A
REVISED BUSINESS LICENSE FEE SCHEDULE.
WHEREAS, the City has analyzed current business license fees; and
WHEREAS, the City has received multiple public comments that the existing
business license and revenue generating regulatory license (RGRL) fee calculation
based on full-time equivalent (FTE) can be difficult to calculate correctly; and
WHEREAS, calculating the fee by "Employee" rather than FTE will simplify the
Iculation process for the public and Citv staff: and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Repealer. Resolution No. 1875 is hereby repealed.
Section 2. Fee Schedule. For 2018, Business License fees will be charged
according to the following schedule_���? NEy
(continued...)
W:\Word Processing\Resolutions\Business license fee schedule revised strike-thru 8-14-17
vc:bjs Page 1 of 5
159
ANNUAL BUSINESS LICENSE FEE SCHEDULE
Standard Business License fee:
$50 per part-time employee*
* Employee is defined at Tukwila Municipal Code
Section 5.04.010(10), copied below.
Plus
• A "part-time employee" is an employee
$42- 70 per full-time eql�+V@IeRt
working 29 or less hours per week.
employee F=TE*
• A "full-time employee" is an employee working
equals total Business License Fee**
30 or more hours per week.
**The + -total Business License fee due afAouf-will vary based on the
combination of part-time and full-time employees employed by the business.
For example, a business with one part-time employee (and no other employees) will
pay a bined-Business License Fee of $50.
A business with one full-time employee (and no other employees) will pay a
Geff�b+r�ed-Business License Fee of $70.
Minimum QenA+Ped Business License fee: $50.00
" 1 ukwila r, lunicir)al Code Section � r)4. l
zr' 1 nx e -i is .-� o �e .1 it t Y, r a-
10 � � J �� gra ��� � r,t, � - ,�Ef�� � �, � � ��,.,,1 � � 3 �� � , �i � tr � � nol*
fecr- ( 1, -J the h J,. i ✓, .Pr-ih.:7 l b/�1 :J U, oarate �✓ p J- at 1 i.r,,;Y t.� Jai ,z...._s� f�L.
a AA a., t',- t i t 1 ._ �- 5 ,....� .S _ r... S v. Y. -
n `d � t m -,`'1 1 1 �J w La i='y ) w; b -�j U �� lI � - _! ..
C T� of Tukwila ai f' _ _.
�... �.. 7 i`y thi 1, l_ � i -� n d i '�
AJ. rr I -i' oe. -.'�{ ........._�..-o iS 'v 1�`' JL.I "7 S7!.� '._ `-"�� '`�_.. } SSI t ,(-f�'•Ci jJ -'(�--
i y , r q e z rr ! e- or r{ 3 F s- n _ ..-
- ' - persc 1 id'i C7 t J i r'> y', r1r{, se /I` es or la c t � 1 JS ' "1_.: r7
but not limited to family members regardless of whether they receive a wage
from the business
W:\Word Processing\Resolutions\Business license fee schedule revised strike-thru 8-14-17
VC:bjs Page 2 of 5
160
(O sines s ) inonse Coe'' +
i' GRI=-F-ee
Gemhineed 1 eeRse Fes.\
equals
Fee GalGula
Monirnurn Feei
Multip
x 0. 34RQ
f-Ftti' u a ll"fl'o u-rs
Annual
Fee Due
$67.00
a
maRagers and empleyees iRGIUdiR9
family members beth full and
time. Heups WE)Fkad
iRGlUdeS paid time e#-.
a The multiplier equals the @RRUal
m
time eq iiyale Rt (FTE) aRR al empinvee
e
part
GembiRed fee divided by WhiGh is the standard full
1,920,
wepk hel irc
Other annual license fees:
Adult Cabaret establishment
$500.00 + GaITIbiR661 Business License Fee (per above
sa atiGp)
Adult Cabaret entertainer
$75.00 + Caa;biRed Business License Fee (per above
aakcUlatiG44)
Adult Cabaret manager
$75.00
Adult Entertainment Cabaret
$500.00 + C biRed Business License Fee (per above
establishment
aalGulati)
Adult Entertainment Cabaret
$75.00 + GOR*Red-Business License Fee (per above
entertainer
salGUlatie )
Adult Entertainment Cabaret
$75.00
manager
W:\Word Processing\Resolutions\Business license fee schedule revised strike-thru 8-14-17
vc:bjs Page 3 of 5
161
Amusement Center
$500.00 + Cued -Business License Fee (per above
Ga-EstllatiG tR)
Amusement device fee
$50.00 per device + GombiRed Business License Fee
(per above-eaIs k )
Amusement device removal fee
$50.00 per device
Amusement device storage fee
$10.00 per device per day
Appeal Fee
$250.00
Cabaret establishment
$300.00 +-.Business License Fee (per above
oei tiGo)
Contractor based outside of Tukwila
Same as SsE-ed-Business License Fee (per above
sa I )
Panoram premises
$100.00
Panoram device
$50.00 per device
Panoram operator
$725.00
Penalty for late acquisition of
business license (operating a
business without a valid license)
If received or postmarked within 0 to 30 days of
operation = 5% of license fee
If received or postmarked within 31 to 60 days of
operation = 10% of license fee
If received or postmarked within 61 to 90 days of
operation = 15% of license fee
If received or postmarked within 91 to 120 days of
operation = 20% of license fee
If received or postmarked at 121 days of operation or
longer = maximum of 25% of license fee
Penalty for late renewal of business
license
If received or postmarked Feb. 1 through Feb. 28
= 15% of license fee
If received or postmarked March 1 through March 31
= 30% of license fee
If received or postmarked April 1 or later
= 45% of license fee
Peddler/Solicitor
$70.00
Reinstatement of license fee
$50.00
Washington State Patrol WATCH
background check
$12.00
W:\Word Processing\Resolutions\Business license fee schedule revised strike-thru 8-14-17
vc:bjs Page 4 of 5
IT -VA
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
FAI gi %I OW
Rachel B. Turpin, City Attorney
Dennis Robertson, Council President
Filed with the City Clerk:_
Passed by the City Council:
Resolution Number:
W:\Word Processing\Resolutions\Business license fee schedule revised strike-thru 8-14-17
VC:bjs
Page 5 of 5
163
164
Finance Committee Minutes
August 8, 2017
D. Ordinance: Amending Municipal Code Chapter S•o4
Staff is seeking Council approval of an ordinance that would amend Tukwila Municipal Code
Chapter 5.04, "Licenses Generally," to replace "FTE" with "employee" regarding the business
license fee structure. This item was approved with amendments by the Finance Committee on
July 18, 2017, but was referred back to Committee by Committee of the Whole on July 24, 2017.
Recent Washington State legislation will require the City to use the State's online business
license system within the next few years, and staff recommends changing the current fee
schedule to be based upon flat rates per employee totals to streamline the process in preparation
for moving to the State system.
The proposed ordinance would assess a flat rate of $70 per full-time employee (defined as 30
hours or more each week) and $50 per part-time employee. As follow-up to the Committee of
the Whole discussion, staff provided more detail about how $50 for part-time employee was
calculated. Since part-time is defined as fewer than 3o hours per week, and 3o hours is 75% of a
typical workweek, the proposed part-time rate was derived as 75%ofthe proposed full-time rate
rounded down to a whole number.
Staff provided an e-mail from Assistant City Attorney Charlotte Archer recommending that the
business license fee structure be amended from a "combined business license fee", which
includes both a standard license fee plus a revenue generating license fee, to a "single license
fee". Since this change wasn't included in the packet, committee members asked to have the
legislation return to the next Finance Committee meeting for further review.
To address any unintended consequences of changing the fee structure, staff offered to
implementthe proposed changes forthe 2018 license year, and return to committee in mid -2o18
for a comprehensive review of the data collected.
Committee member McLeod said he preferred a lateral change in fee structure for part-time
employees and recommended $35 instead of $50 since we're moving to this model in advance of
going live with the State's system.
APPROVED 2-1, WITH COMMITTEE MEMBER MCLEOD OPPOSED. FORWARD TO AUGUST
22, 2017 FINANCE COMMITTEE.
Resolution: Adopting a Revised Business License Fee Schedule
Staff is seeking Council approval of a resolution that would adopt the revised business license fee
schedule pursuant to the draft ordinance discussed above. UNANIMOUS APPROVAL.
FORWARD TO AUGUST 22, 2017 FINANCE COMMITTEE.
III. MISCELLANEOUS
Adjourned at 6:20 P.M.
r Committee Chair Approval
Minutes by SW
165
Finance Committee Minutes
August 8, 2017
D. Ordinance: Amending Municipal Code Chapter S•o4
Staff is seeking Council approval of an ordinance that would amend Tukwila Municipal Code
Chapter 5.04, "Licenses Generally," to replace "FTE" with "employee" regarding the business
license fee structure. This item was approved with amendments by the Finance Committee on
July 18, 2017, but was referred back to Committee by Committee of the Whole on July 24, 2017.
Recent Washington State legislation will require the City to use the State's online business
license system within the next few years, and staff recommends changing the current fee
schedule to be based upon flat rates per employee totals to streamline the process in preparation
for moving to the State system.
The proposed ordinance would assess a flat rate of $70 per full-time employee (defined as 30
hours or more each week) and $50 per part-time employee. As follow-up to the Committee of
the Whole discussion, staff provided more detail about how $50 for part-time employee was
calculated. Since part-time is defined as fewer than 3o hours per week, and 3o hours is 75% of a
typical workweek, the proposed part-time rate was derived as 75%ofthe proposed full-time rate
rounded down to a whole number.
Staff provided an e-mail from Assistant City Attorney Charlotte Archer recommending that the
business license fee structure be amended from a "combined business license fee", which
includes both a standard license fee plus a revenue generating license fee, to a "single license
fee". Since this change wasn't included in the packet, committee members asked to have the
legislation return to the next Finance Committee meeting for further review.
To address any unintended consequences of changing the fee structure, staff offered to
implementthe proposed changes forthe 2018 license year, and return to committee in mid -2o18
for a comprehensive review of the data collected.
Committee member McLeod said he preferred a lateral change in fee structure for part-time
employees and recommended $35 instead of $50 since we're moving to this model in advance of
going live with the State's system.
APPROVED 2-1, WITH COMMITTEE MEMBER MCLEOD OPPOSED. FORWARD TO AUGUST
22, 2017 FINANCE COMMITTEE.
Resolution: Adopting a Revised Business License Fee Schedule
Staff is seeking Council approval of a resolution that would adopt the revised business license fee
schedule pursuant to the draft ordinance discussed above. UNANIMOUS APPROVAL.
FORWARD TO AUGUST 22, 2017 FINANCE COMMITTEE.
III. MISCELLANEOUS
Adjourned at 6:20 P.M.
r Committee Chair Approval
Minutes by SW
166
Finance Committee Minutes................................................................................................................................... August 22, 2017
would be necessary. Staff issued a Request for Qualifications and selected Berk Consulting, Inc.
from the three responding firms. The contract with Berk will be for $24,720 and is available
through unspent Finance Department budget. The contract does not require Council approval
and the Finance Department aims to complete final adoption of any recommendation by the
end of the year. The Committee members expressed support for this project. DISCUSSION
ONLY.
D. Ordinance: Amending Municipal Code Chapter 5.04
Staff is seeking Council approval of an ordinance that would amend Tukwila Municipal Code
Chapter 5.04, "Licenses Generally," to replace "FTE" with "employee" and to eliminate
reference to a "combined" business license fee. Recent Washington State legislation will
require the City to use the State's online business license system within the next few years, and
staff recommends changing the current fee schedule to be based upon flat rates per employee
totals to streamline the process in preparation for moving to the State system. The proposed
ordinance would assess a flat rate of $70 per full-time employee (defined as 30 hours or more
each week) and $50 per part-time employee. This item was approved with amendments by the
Finance Committee on July 18, 2017, but was referred back to Committee by Committee of the
Whole on July 24, 2017. On August 8, 2017, staff briefed the Committee on new advice from the
City Attorney recommending that the business license fee structure be amended from a
"combined" fee to a single fee.
The Committee discussed the proposal and unanimously approved the amendment regarding
the elimination of a "combined" fee. Councilmember McLeod again expressed his opinion that
the fee for a part-time employee should be $35, and therefore would not support the legislation
as presented. MAJORITY APPROVAL, COUNCILMEMBER MCLEOD OPPOSED. FORWARD TO
AUGUST 28, 2017 COMMITTEE OF THE WHOLE.
Resolution: Adopting a Revised Business License Fee Schedule
Staff is seeking Council approval of a resolution that would adopt the revised business license
fee schedule pursuant to the draft ordinance discussed above. MAJORITY APPROVAL,
COUNCILMEMBER MCLEOD OPPOSED. FORWARD TO AUGUST 28, 2017 COMMITTEE OF THE
WHOLE.
E. Business Responsibilities regarding Litter Control
During the July 24, 2017 Committee of the Whole meeting, the City Council heard public
comment on the business license legislation asking the City to add regulations regarding
business responsibilities toward exterior maintenance and urging more enforcement. The City
Attorney has advised against adding maintenance regulations in the business license code as it
would be duplicative of existing codes. Owners or occupants of private property are prohibited
from allowing the accumulation of litter pursuant to TMC Chapter 6.12, Refuse Disposal, as well
as the International Property Maintenance Code which is also adopted by the City. The Code
Enforcement division is currently working on an update to its enforcement chapter, and has
also created some new educational materials which can be handed out to new and existing
businesses regarding their obligations. City staff has also offered to add language to the
business license application and will return to committee with a draft.
167
Finance Committee Minutes................................................................................................................................... August 22, 2017
would be necessary. Staff issued a Request for Qualifications and selected Berk Consulting, Inc.
from the three responding firms. The contract with Berk will be for $24,720 and is available
through unspent Finance Department budget. The contract does not require Council approval
and the Finance Department aims to complete final adoption of any recommendation by the
end of the year. The Committee members expressed support for this project. DISCUSSION
ONLY.
D. Ordinance: Amending Municipal Code Chapter 5.04
Staff is seeking Council approval of an ordinance that would amend Tukwila Municipal Code
Chapter 5.04, "Licenses Generally," to replace "FTE" with "employee" and to eliminate
reference to a "combined" business license fee. Recent Washington State legislation will
require the City to use the State's online business license system within the next few years, and
staff recommends changing the current fee schedule to be based upon flat rates per employee
totals to streamline the process in preparation for moving to the State system. The proposed
ordinance would assess a flat rate of $70 per full-time employee (defined as 30 hours or more
each week) and $50 per part-time employee. This item was approved with amendments by the
Finance Committee on July 18, 2017, but was referred back to Committee by Committee of the
Whole on July 24, 2017. On August 8, 2017, staff briefed the Committee on new advice from the
City Attorney recommending that the business license fee structure be amended from a
"combined" fee to a single fee.
The Committee discussed the proposal and unanimously approved the amendment regarding
the elimination of a "combined" fee. Councilmember McLeod again expressed his opinion that
the fee for a part-time employee should be $35, and therefore would not support the legislation
as presented. MAJORITY APPROVAL, COUNCILMEMBER MCLEOD OPPOSED. FORWARD TO
AUGUST 28, 2017 COMMITTEE OF THE WHOLE.
Resolution: Adopting a Revised Business License Fee Schedule
Staff is seeking Council approval of a resolution that would adopt the revised business license
fee schedule pursuant to the draft ordinance discussed above. MAJORITY APPROVAL,
COUNCILMEMBER MCLEOD OPPOSED. FORWARD TO AUGUST 28, 2017 COMMITTEE OF THE
WHOLE.
E. Business Responsibilities regarding Litter Control
During the July 24, 2017 Committee of the Whole meeting, the City Council heard public
comment on the business license legislation asking the City to add regulations regarding
business responsibilities toward exterior maintenance and urging more enforcement. The City
Attorney has advised against adding maintenance regulations in the business license code as it
would be duplicative of existing codes. Owners or occupants of private property are prohibited
from allowing the accumulation of litter pursuant to TMC Chapter 6.12, Refuse Disposal, as well
as the International Property Maintenance Code which is also adopted by the City. The Code
Enforcement division is currently working on an update to its enforcement chapter, and has
also created some new educational materials which can be handed out to new and existing
businesses regarding their obligations. City staff has also offered to add language to the
business license application and will return to committee with a draft.
.: