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HomeMy WebLinkAboutCOW 2012-08-27 Item 3A - Ordinance - TMC Title 5 "Business Licenses and Regulations" AmendmentsCOUNCIL AGENDA SYNOPSIS Initials ITEM NO. Meeting Date I Prepared by I Mayor's review Council review 08/27/12 CW I 09/04/12 CW 3.A. ITEM INFORMATION STAFF SPONSOR: PEGGY MCCARTHY I ORIGINAL AGENDA DATE: 08/27/12 AGENDA ITEM TITLE An Ordinance amending Title 5 Business Licenses and Regulations CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing ❑Other Mtg Date 08127112 Mtg Date Mtg Date Mtg Date 09104112 Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P&R Police PW SPONSOR'S Finance staff has performed a review of Title 5 Business License and Regulations and have SUMMARY identified some code changes/ modifications including: definition of business, standardization of regulations for temporary business licenses, revisions to the appeal process and some general housekeeping issues. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 08/21/12 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONSOR /ADMIN. Finance Department COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE 08/27/12 RECORD OF COUNCIL ACTION MTG. DATE I ATTACHMENTS 08/27/12 I Informational Memorandum dated 8/21/12 Ordinance in Draft Form Business License Penalties /2012 Notices Issued 2011 Temporary Event Licenses Issued 9/4/12 1 p City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Cindy Wilkins, Fiscal Specialist DATE: August 21, 2012 SUBJECT: Amendments to TMC Title 5: Business Licenses and Regulations ISSUE Council is being asked to consider several amendments to Tukwila Municipal Code (TMC) Title 5: Business Licenses and Regulations in order to increase efficiency and provide clarity in the Code. BACKGROUND In 2010, the Finance Department assumed responsibility for business licensing. In October 2011, several changes were made to Title 5, as a result of this change. Since that time, the Finance Department has identified areas of the Code in need of clarification and /or further explanation, in order to assist in efficient processing of business license applications and renewals. These changes will also help eliminate confusion for business license applicants. These recommended changes are outlined below. DISCUSSION 1. Update to the definitions of "Business" and "Business License Required" The definitions of "Business" (TMC 5.04.010) and "Business License Required" (TMC 5.04.015) need to be refined, in order to address questions in applicability. Currently, the TMC states that if you are engaging in business in Tukwila, you are required to have a business license. This wording is vague and has resulted in some challenges relating to who should and who should not be required to have a business license in Tukwila. Specifically, some of the challenges involve outside vendors and whether or not conducting business in Tukwila when the vendor is located outside the City requires a business license. Staff believes that the intent of the Code is to require a business license from any activity, occupation, pursuit or profession located in or engaged within the City regardless if the physical location is within City boundaries. Changing the definitions of "business" and "business license required" would add clarity and enforceability to the Code. The proposed draft definition of "business" was derived from a combination of definitions from codes in the following cities including Kent, Redmond, and Kirkland. The proposed draft definition of "business license" was derived from a combination of definitions from code language used in Lynnwood and Redmond. 2. Temporary Business Licenses In regards to temporary business licenses, the TMC reads that a business that employs fewer than 10 employees is exempt from payment of a license fee (TMC 5.04.020(C)(7)). The primary purpose of this section was intended to ensure events like sidewalk sales, carnivals and /or tent 3 INFORMATIONAL MEMO Page 2 sales of established businesses were in compliance with City regulations for safety issues with tents, ample parking, adequate restroom facilities and other requirements. The Code has also been applied to vendors at City sponsored events such as Tukwila Days, 4 th of July, or other events at the Tukwila Community Center (TCC). Most vendors at these events have volunteers or employ fewer than 10 employees so they are exempt from the business license fee. For City sponsored events or events held at TCC, participating vendors complete a Vendor /Exhibitor Opportunities form and pay the applicable fee at the Community Center in addition to completing a Temporary Event application. The Temporary Event application is redundant and takes time for staff to process a temporary license with no associated fee. The City Council has expressed an interest in and a desire for these types of vendors to participate and support our community in such events, and these processes will create a made more user environment. To recover the cost of processing a business license, staff recommends charging all other entities applying for a Temporary Event License that are for a non -City sponsored event, the minimum $67 business license fee per application. This requires changing the definition of minimum fee (TMC 5.04.020 (7). A summary of temporary business licenses issued in 2011 is attached for Committee review (Attachment #3). The draft ordinance exempts City -run special events as discussed above, and requires a temporary business license fee for all other vendors. 3. Fee for Late Acquisition or Renewal (TMC 5.04.050(A) Currently, the Code processes late fees for delinquent business license renewals and late acquisitions in the same manner. The current language works for late acquisition, but is not efficient for business license renewal penalties. Late fees on business license renewals needs to be identified separately. Based on research conducted by staff on processing late fees in surrounding cities, there may be a more efficient way to encourage timely payment of business license fees and compliance with the Code. In comparison to other cities, Tukwila provides a generous policy regarding penalty fees for late business license renewals. Staff believes that increasing the penalty fee will reduce staff processing costs, time, and increase the likelihood of timely payments and complete the renewal process in a shorter amount of time. Staff recommends implementing the changes outlined in Attachment #3, and changing the Code accordingly. 4. Various Housekeepina Chances Several housekeeping changes are recommended to add consistency and clarity to the Code. These housekeeping items are discussed below: The following sections of the Code need the word "City" added before "Clerk Any appeals the City receives needs to be received by the City Clerk. Appeals (TMC 5.10.100) and Appeals (TMC 5.56.100). The appeal fee of $250 in Appeal of Notice of Denial, Suspension or Revocation (TMC 5.04.112) was inadvertently removed when the Code was initially changed in 2011, and needs to be added back to the ordinance. A few sections of the Code never included appeal language and were subsequently challenged. It was thought that the appeal fee language in TMC 5.04.0112 (B) would apply to all of Title 5; however since the language is Chapter specific, it does not apply to the other Chapters in question. The language should be added to these sections, so the City can collect appeal fees to help off -set the hearing examiner fees. The following sections are being recommended for change: Appeals and Hearings Cabarets (TMC 5.08.080) and Adult Cabarets TMC 5.10.100(A); and Appeals (A) Adult Entertainment Cabaret (TMC 5.56.100). n INFORMATIONAL MEMO Page 3 Add the term UBI (Unified Business Identifier) to factors that signify a Change in Nature of Business (TMC 5.04.070) to clarify when a new business license application needs to be submitted and applicable fees need to be collected. Currently the code only states that a change in the nature of business or a change in ownership requires payment of the applicable license fee. A change in the UBI number requires the fee to be paid as well. RECOMMENDATION The City Council is being asked to consider the ordinance amending Title 5 Business Licenses and Regulations at the August 27, 2012 Committee of the Whole meeting and subsequent September 4, 2012 Regular Meeting. ATTACHMENTS Draft Ordinance Business License Penalties /2012 Notices Issued 2011 Temporary Event Licenses Issued R p AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING VARIOUS ORDINANCES AS CODIFIED IN TUKWILA MUNICIPAL CODE TITLE 5, "BUSINESS LICENSES AND REGULATIONS," TO CLARIFY THE DEFINITION OF "BUSINESS AMEND LANGUAGE RELATING TO A TEMPORARY BUSINESS LICENSE, UPDATE LANGUAGE DEFINING LATE ACQUISITION OF LICENSE AND PENALTY FEES, AND REINSTATING THE FORMER APPEAL FEE OF $250.00; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, Title 5 of the Tukwila Municipal Code (TMC), "Business Licenses and Regulations," was last updated November 2011 by Ordinance No. 2356; and WHEREAS, a revision to the definition of "business" will help clarify when a City business license is required; and WHEREAS, the City Council desires to standardize regulations relating to a temporary business license; and WHEREAS, the City Council supports assessment of penalty fees for a business operating without first obtaining a business license, and for businesses that fail to renew their business license in the required timeframe; and WHEREAS, revisions to the appeal procedures and appeal fees are needed for consistency in filing of appeals relating to all sections of Title 5 and to help defray the cost of Hearing Examiner fees; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 5.04.010, "Definitions," Amended. Ordinance Nos. 2356 §1, 2333 §1 and 2315 §1 (part), as codified at TMC Section 5.04.010, "Definitions," under subparagraph 1 entitled, "Business," are hereby amended to read as follows: W: Word Processing \Ordinances \Business lic amds- definitions and appeals 8 -9 -12 strike -thru CW:bjs Page 1 of 7 7 1. "Business," means and includes all activities, occupations, trades, pursuits, or professions located or enaaqed within the Citv that involves the manufacturing or processing of materials of any type, the sale of goods, wares or merchandise, the rendition of services or the repair of goods, wares or merchandise to the g eneral n„hli,. nr a perfien t h °re for any consideration to the person enaaginq in the same or to anv other person or class, directly or indirectly, whether or not an office or phvsical location for the business lies at eaGh established plaGe of busiReorc, C+ -er�T^° or yard within the City limits. Section 2. TMC Section 5.04.015, "Business License Required," Amended. Ordinance Nos. 2333 §2 and 2315 §1 (part), as codified at TMC Section 5.04.015, "Business License Required," are hereby amended to read as follows: No person or persons shall conduct, maintain, operate, or engage in any business within the City without first applying for and obtaining a business license and paying the fee(s) as prescribed herein unless the business is exempt. The exemption is only from the need to pay a fee for issuance of the business license and shall not be construed as relief from compliance with other requirements of the Tukwila Municipal Code. All businesses operating or engaginq in business within the City are required to submit a business license application or renewal, as appropriate, regardless of whether a business license fee is due to the City. Section 3. TMC Section 5.04.020, "Application and Fees Required," Amended. Ordinance Nos. 2356 §2, 2333 §3 and 2315 §1 (part), as codified at TMC Section 5.04.020, "Application and Fees Required," under subparagraph C entitled "Minimum Fee," are hereby amended to read as follows: C. Minimum Fee. There shall be a minimum fee for an annual license of $67.00, consisting of a $12.00 business license fee and a $55.00 RGRL fee, except if the b Ucin °cc q fer a f°mn°rary b sine l +Gense in aG r° wi TIVI S 5.04. 010 er is for an entity defined in TMC Section 5.04.090. 1. A business with less than $12,000.00 of annual gross receipts shall pay the minimum license fee. A residential rental property with less than $12,000.00 of annual gross receipts shall be exempt from the RGRL fee, but shall be subject to the license fee requirements set forth in TMC Section 5.06.040. 2. An entity engaging in some activities or functions that are exempt from the combined business license fee and some that are not exempt shall pay a license fee based on the number of full -time equivalent employees involved in the functions or activities that are not exempt. 3. An individual person operating more than one business as sole proprietorship or owning more than one residential rental property within the corporate limits of the City shall pay only one RGRL fee, at an amount equal to the highest RGRL fee for any one of the multiple businesses, if not otherwise exempt from paying the license fee pursuant to this chapter. TMC Section 5.04.020.C.3 shall not apply if any W: Word Processing \Ordinances \Business lic amds- definitions and appeals 8 -9 -12 strike -thru cW:bjs Page 2 of 7 one of the businesses or properties owned by the sole proprietor has three or more full time equivalent employees. 4. If a business has more than one location in Tukwila, the license fee calculation shall include at least the minimum fee for each location. 5. The license fee for a business required to be licensed under this chapter and not located within the City's corporate limits shall be calculated by multiplying the license fee by the number of FTE employees working within the City, but in no event shall the license fee be less than the minimum license fee set forth in this chapter. If the number of FTE employees is not known at the time of renewal, the business shall estimate the maximum number of FTE employees they anticipate working in Tukwila for the 12 -month period subject to licensure. 6. Businesses doing business in the City that have no employees physically working within the City shall pay the minimum fee required under this chapter. 7. Businesses or organizations e f eweF than 10 empl,,.,oc 2PA -that a-re eligible for a temporary business license pursuant to TMC Section 5.04.010 shall be exempt from payment „f a license fog will be required to pav the minimum $67.00 business license fee unless the applicant is participating at a City- sponsored event or as part of an event held at the Tukwila Communitv Center. If an applicant is particioatinq at a Citv- sponsored event or as part of an event held at the Tukwila Communitv Center, thev will be required to complete all application requirements and approvals required by the City's Parks and Recreation Department. Section 4. TMC Section 5.04.050, "Fee for Late Acquisition or Renewal," Amended. Ordinance Nos. 2356 §4, 2333 §5 and 2315 §1 (part), as codified at TMC Section 5.04.050, "Fee for Late Acquisition or Renewal," are hereby amended to read as follows: 5.04.050 Fee for Late Acquisition or Renewal A. Monetary Penalty. Failure to pay the license fee by the first day of commencinq business operations w ithi n Qn days after the day en which i t —is due and payable pursuant to TMC Section 5.04.020 will result in a late acquisition penalty equal to shall render the b 6u bj e t nonol t- ^f 5% of the awe of license fee for the first month of delinquency and an additional penalty of 5% for each succeeding month of delinquency, but not to exceeding a total penalty of 25% of the aFnGURt Of license fee_, plus any legal er administrative expeRses inGUrFed by the City. Failure to pav the annual business license renewal fee by January 31st shall constitute delinquency and shall result in a penalty equal to 15% of the business license fee for applications and payment receipted or postmarked February 1 through February 28. If application and pavment is receipted or postmarked March 1 throuqh March 31st, a penalty of 30% of the business license fee will be added. If application and payment is receipted or postmarked April 1 or later, a penalty of 45% of the business license fee will be added. No business license for the current period shall be granted until all the delinquent fees, together with penalties, have been paid in full. The Finance Director or W: Word Processing \Ordinances \Business lic amds- definitions and appeals 8 -9 -12 strike -thru CW:bjs Page 3 of 7 t• his /her designee is authorized, but not obligated, to waive all or any portion of the penalties and interest provided herein in the event the Director or his /her designee determines that the late payment was the result of excusable neglect or extreme hardship. B. Collection of Fees and Penalties. Any license fee due and unpaid under this chapter, and all penalties thereon, shall constitute a debt to the City and may be collected in court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to any and all other existing remedies. C. Revocation of License. The Finance Director may revoke any business license issued pursuant to this chapter to any business or other person who is in default in any payment of any license fee hereunder, or who shall fail to comply with any of the provisions of this chapter. Notice of such revocation shall be mailed to the license holder by the Finance Director, and on and after the date thereof any such business that continues to engage in business shall be deemed to be operating without a license and shall be subject to any and all penalties herein provided. D. There shall be a penalty of not less than $50.00 to reinstate any business license revoked through nonpayment of the business license fee. Section 5. TMC Section 5.04.070, "Change in Nature of Business," Amended. Ordinance Nos. 2356 §5, 2333 §6 and 2315 §1 (part), as codified at TMC Section 5.04.070, "Change in Nature of Business," are hereby amended to read as follows: The license granted in pursuance hereof shall be used to conduct the business or type of business at the designated address for which such license is issued. Any change in the nature of the business, a change in the Unified Business Identifier (UBI) issued by the Washington State Department of Licensing, a change in the physical location of the business, or a change in ownership of the business shall necessitate a renewed application to the Finance Department. A change in the nature of business, change in the Unified Business Identifer or a change in ownership will also require payment of the applicable license fee. Section 6. TMC Section 5.04.112, "Appeal of Notice of Denial, Suspension or Revocation," Amended. Ordinance Nos. 2333 §9 and 2315 §1 (part), as codified at TMC Section 5.04.112, "Appeal of Notice of Denial, Suspension or Revocation," are hereby amended to read as follows: A. Whenever the Finance Director, or his /her designee, determines there is cause for suspending, denying or revoking any license issued or applied for pursuant to this chapter, the Finance Director, or his /her designee, shall notify the person holding the license, by registered mail or hand delivery, of his /her determination. Notice mailed to the address on the license shall be deemed received three business days after mailing. The notice shall specify the grounds for suspension, denial or revocation. W: Word Processing \Ordinances \Business lic amds- definitions and appeals 8 -9 -12 strike -thru CW:bjs Page 4 of 7 10 B. The licensee or applicant may appeal the decision of the Finance Director, or his /her designee, to suspend, deny or revoke a business license by filing a written appeal to the City Clerk within 10 calendar days of the decision. The appeal must state the grounds for appeal and the basis for why the decision was incorrect. To be accepted the appeal must be accompanied by an appeal fee of $2-00.00 $250.00. C. Upon receipt of the notice of appeal, the Finance Director shall set a date for hearing the appeal before the City's Hearing Examiner. Notice of the hearing will be mailed to the licensee or applicant. D. The hearing shall be de novo. The Hearing Examiner may affirm, reverse or modify the Finance Director's, or his /her designee's, decision. E. The decision of the Hearing Examiner shall be final. Any appeal from the administrative hearing shall be to King County Superior Court within 14 calendar days of the Hearing Examiner's decision. Section 7. TMC Section 5.08.080, "Appeals and Hearing," Amended. Ordinance Nos. 2355 §6, 1796 §3 (part) and 1586 §2 (part), as codified at TMC Section 5.08.080, "Appeals and Hearing," are hereby amended to read as follows: A. Any person aggrieved by the action of the Finance Director in refusing to issue or renew any license under this chapter or in suspending or revoking any license under this chapter shall have the right to appeal such action to the City Hearing Examiner, or to such other hearing body as may hereafter be established by the City Council for the hearing of such appeals, by filing a notice of appeal with the City Clerk within 10 days of receiving notice of the action from which appeal is taken. The appeal must state the grounds for appeal and the basis for why the decision was incorrect and include an appeal fee of $250.00. B. The hearing body, upon receipt of a timely notice of appeal, shall set a date for a hearing of such appeal within 20 days from the date of such receipt, except as specified in TMC Section 5.08.080.C. The hearing shall be de novo. The hearing body shall hear testimony, take evidence and may hear oral argument and receive written briefs. The filing of such appeal shall stay the action of the Finance Director, pending the decision of the hearing body. C. The decision of the hearing body on an appeal from a decision of the Finance Director shall be based upon a preponderance of the evidence. The burden of proof shall be on the appellant. D. The decision of the hearing body shall be final unless appealed to the Superior Court within 20 days of the date the decision is entered. W: Word Processing \Ordinances \Business lic amds- definitions and appeals 8 -9 -12 strike -thru cW:bjs Page 5 of 7 11 Section 8. TMC Section 5.10.100, "Appeals," Amended. Ordinance No. 1778 §2 (part), as codified at TMC Section 5.10.100, "Appeals," is hereby amended to read as follows: A. Upon notice of non issuance, revocation .or suspension of any license under this chapter, or imposition of any penalty under TMC Section 5.10.110, the applicant or license holder may appeal by filing a notice of appeal, specifying the particular reason(s) upon which the appeal is based, with the Citv Clerk within 10 days of a-nd iRGIudiRg—the date of the notice of non issuance, revocation or suspension. To be accepted, the appeal must be accompanied by an appeal fee of $250.00. A timely notice of appeal shall stay the effect of the notice of non issuance, revocation, suspension or imposition of any penalty under TMC Section 5.10.110. An untimely notice of appeal shall be rejected as such by the City Clerk, and no appeal hearing shall be scheduled. A warning notice to a manager, under TMC Section 5.10.110.A.1, shall not constitute the imposition of a penalty. B. Upon timely filing of a notice of appeal, the Clerk Director shall schedule a hearing on the appeal before a Hearing Examiner. The hearing shall be conducted no later than 45 days from the date of the notice of appeal, unless an extension is agreed to by the appellant or otherwise ordered by the Examiner for good cause shown. The Hearing Examiner shall have the authority to issue subpoenas for persons and documents relevant to the appeal upon request of a party. C. Within 20 days, excluding holidays recognized by the City of Tukwila, from the date of the hearing on an appeal under this section, the Hearing Examiner shall issue a written decision which shall set forth the reasons therefor. D. A decision of the Hearing Examiner, or a decision of the City Clerk to reject an appeal as untimely, shall be final, unless an application for a writ of review is filed with the King County Superior Court and properly served upon the City of Tukwila within 14 calendar days of and including the date of the Hearing Examiner's decision. Section 9. TMC Section 5.56.100, "Appeals," Amended. Ordinance Nos. 1747 §1 (part) and 1490 §2 (part), as codified at TMC Section 5.56.100, "Appeals," are hereby amended to read as follows: A. Upon notice of non issuance, revocation or suspension of any license under this chapter, or imposition of any penalty under TMC Section 5.56.120, the applicant or license holder may appeal by filing a notice of appeal, specifying the particular reason(s) upon which the appeal is based, with the Citv Clerk within 10 days of and +aGladiRg-- date of the notice of non issuance, revocation or suspension. To be accepted, the appeal must be accompanied by an appeal fee of $250.00. A timely notice of appeal shall stay the effect of the notice of non issuance, revocation, suspension or imposition of any penalty under TMC Section 5.56.120. An untimely notice of appeal shall be rejected as such by the City Clerk, and no appeal hearing shall be scheduled. A warning notice to a manager, under TMC Section 5.56.110.A.1, shall not constitute the imposition of a penalty. W: Word Processing \Ordinances \Business lic amds- definitions and appeals 8 -9 -12 strike -thru cW:bjs Page 6 of 7 12 B. Upon timely filing of a notice of appeal, the Clerk Finance Director shall schedule a hearing on the appeal before a Hearing Examiner. The hearing shall be conducted no later than 45 days from the date of the notice of appeal, unless an extension is agreed to by the appellant. The Hearing Examiner shall have the authority to issue subpoenas for persons and documents relevant to the appeal, upon request of a party. C. Within 20 days, excluding holidays recognized by the City of Tukwila, from the date of the hearing on an appeal under this section, the Hearing Examiner shall issue a written decision, which shall set forth the reasons therefor. D. A decision of the Hearing Examiner, or a decision of the City Clerk to reject an appeal as untimely, shall be final, unless an application for a writ of review is filed with the King County Superior Court and properly served upon the City of Tukwila within 14 calendar days of and including the date of the Hearing Examiner's decision. Section 10. 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 11. 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 12. 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 five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Jim Haggerton, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Shelley M. Kerslake, City Attorney Ordinance Number: W: Word Processing \Ordinances \Business lic amds- definitions and appeals 8 -9 -12 strike -thru CW:bjs Page 7 of 7 13 14 Business License Renewal Penalties (Penalty amount based on the License Fee due) Tukwila (CURRENT) If paid, Jan 1 Jan 31 No Penalty Fee Due Feb 1 Feb 28 Add'I 5% Penalty Due Mar 1- Mar 31 Add'I 10% Penalty Due Apr 1 Apr 30 Add] 15% Penalty Due May 1 May 31 Add'I 20% Penalty Due Jun 1- Jun 30 Add'I 25% Penalty Due July 1st To Code Enforcement Redmond if paid, Jan 1 Feb 14th No Penalty Fee Due Feb 15 Mar 14th Add'I 50% Penalty Due Mar 15 After Add'I 100% Penalty Due Kirkland If paid, Up to 29 days late Add'I $25 or 10% Penalty fee, whichever is greater 30 -59 days late Add'I $50 or 50% Penalty fee, whichever is greater 60 or more days Add'I $100 or 100% Penalty fee, whichever is greater Burien If paid, 30 or more days delinquent shall be subject to a penalty equal to the license fee. Renton If paid, Jan 1 Jan 31 No Penalty Fee Due Feb 1 Feb 28 Add'I 5% Penalty Due Mar 1- Mar 31 Add'I 10% Penalty Due, plus revocation fee of $50 and reinstating fee of $20 Apr 1- Apr 30 Add'I 15% Penalty Due, plus revocation fee of $50 and reinstating fee of $20 May 1- May 31 Add'I 20% Penalty Due, plus revocation fee of $50 and reinstating fee of $20 Jun 1 Jun 30 Add'I 25% Penalty Due, plus revocation fee of $50 and reinstating fee of $20 (per Linda Weldon, they usually don't have many accounts holding out till the end due to revoking their license) Lynnwood If paid, Feb 15th or After New application must be submitted with an add'I penalty fee of 150% Seatac If paid, 1 -15 days past due a penalty of 5% is due or $5 whichever is greater 16 -30 days past due a penalty of 10% or $10 whichever is greater 31 -45 days past due a penalty of 15% or $15 whichever is greater 46 -60 days past due a penalty of 20% or $20 whichever is greater over 61 days a penalty of 100% is due Kent' If paid, after 90 days past due date is subject to a $50 reinstatement fee in addition to the license fee. Staff Recommendation (PROPOSED) Jan 1 Jan 31 No Penalty Fee Due Feb 1 Feb 28 Add'I 15% Penalty Due Mar 1 Mar 31 Add'I 30% Penalty Due Apr 1- Apr 30 Add') 45% Penalty Due May 1st Accounts referred to Code Enforcement 15 2012 Renewal Notices /Late Notices Issued Renewal notices are sent out early December. of Notices Sent 2546 Current Penalty Fees 479 Over 30 day late notices were issued on 2/2 License Fee 5% 10% 15% 20% 25% 23 Based on FTE (After 1/31) (After 2/28) (After 3/31) (After 4/30) (After 5/31) 1 FTE 67.00 1 3.351 6.701 10.051 13.401 16.75 5 FTE 335.00 16.75 33.501 50.251 67.001 83.75 10 FTE 670.00 1 33.50 67.001 100.501 134.001 167.50 20 FTE 1,340.00 1 67.001 134.001 201.001 268.001 335.00 50 FTE 3,350.00 167.501 335.00 502.501 670.001 837.50 100 FTE 6,700.00 1 335.001 670.00 1,005.001 1,340.001 1,675.00 Proposed Penalty Fees License Fee 15% 30% 45% To Code Enforcement Based on FTE (After 1/31) (After 2/28) (After 3/31) May 1 1 FTE 67.00 1 10.051 20.101 30.151 5 FTE 335.00 1 50.25 100.501 150.751 10 FTE 670.00 100.50 201.00 301.501 20 FTE 1,340.00 1 201.001 402.00 603.001 50 FTE 3,350.00 1 502.501 1,005.001 1,507.501 100 FTE 6,700.00 1 1,005.001 2,010.001 3,015.001 2012 Renewal Notices /Late Notices Issued Renewal notices are sent out early December. of Notices Sent 2546 Renewal Notices were issued on 12/6/11 479 Over 30 day late notices were issued on 2/2 (5% penalty) 260 Over 60 day Late Notices were issued on 3/1 (10% penalty) 89 Over 90 day Late Notices were issued on 4/3 (15% penalty) 23 Over 120 day Late Notices were issued on 5/1 (20% penalty) 11 Over 150 day Late Notice were issued on 6/1 (25% penalty) (Business Licenses are valid Jan 1 Dec 31) 16 Requestor 1 Allen Kim Entertainment 2 Anderson, Carter, Bascaou Assoc 3 Best Buy Stores 4 Boeing Stores 5 Cascade Amusements 6 CCCS EFKS Malua Seattle II 7 8 9 10 Electronic Transaction Consultants 11 Family Dog Training Center 12 Funtastic Shows 13 14 Great American Estate Roadshow 15 Highline United Methodist Church 16 17 18 19 20 21 Jenna's Red Rhino /J. Schmidt 22 M -T 23 24 Nutrition First 25 26 RACA Fuerte Church 27 Rags to Rugs Stuff 28 Rengelekel Belau 29 30 Rock Foundation Christian Ctr 31 Samoan Community Church 32 33 34 35 36 Seattle Metro Credit Union 37 Ski Bonkers 38 Visions Intl Feline Supplies 2011 Issued Temp Event Licenses Event Event Location Event Date (Jazz Art Show Southcenter Mall 107/09/2011 Coin Show Doubletree Hotel 12/1- 2/26/11 Movie in Parking Lot Store Parking Lot IThanksgiving Night Annual Tent Sale 10002 E Marg Wy S 18/4- 8/7/11 (Carnival /Rides Mall Southcenter Mall 15/27- 6/8/11 ICar Wash 114415 TIB 7/7- 7/8/11 1 7/14- 7/15/11 7/21- 7/22/11 7/28- 7/29/11 Tax Consultant Southcenter Mall 12/20- 2/27/11 Dog Training (Heritage Culture Ctr 108/20/2011 (Carnival /Rides Mall Southcenter Mall 14/5- 4/15/11 1 7/21- 7/24/11 1Buy Collectables /Coins Best Western 8/22 8/24/11 {Car Wash 114415 TIB 106/18/2011 107/09/2011 107/23/2011 1 07/30/2011 1 08/05/2011 1 108/13/2011 [Cat Show ITukwila Comm Ctr (10/15- 10/16/11 Cat Show ITukwila Comm Ctr 5/21- 5/22/11 1 10/15- 10/16/11 [Breast Feeding Trng ITukwila Comm Ctr 06/21/2011 1 1 09/27/2011 ICar Wash 114415 TIB 8/27 8/28 -11 1Cat Show ITukwila Comm Ctr 10/15- 10/16/11 ICar Wash (14415 TIB 8/21 8/22/11 1 8/27- 8/28/11 ICar Wash 14415 TIB 09/08/2011 {Car Wash 14415 TIB 6/3- 6/4/11 I 16/25- 6/26/11 I I 17/9- 7/10/11 7/23- 7/24/11 I 7/30- 7/31/11 1 Mbrs Only Car Show iParking Lot 106/11/2011 Parking Lot Sale (Southcenter Mall 19/2- 9/6/11 (Cat Show ITukwila Comm Ctr 110/15- 10/16/11 Car Washes The City no longer issues Temp Event licenses for carwashes. City Sponsored Events /Events held at TCC Proposal Business License not needed D AII others would be subject to the Temp Business License application process *For 2011 of the 12 that were not carwashes or Tukwila Events, 6 paid license fees and 6 did not Organization City Renton, WA Pasadena, CA (Tukwila, WA Tukwila, WA (Portland, OR {Seattle, WA {Seattle, WA {Seattle, WA {Seattle, WA (Richardson, TX (Kent, WA (Portland, OR Portland, OR Schaumburg, IL Burien, WA Burien, WA Burien, WA Burien, WA Burien, WA IBurien, WA Kent, WA Kelso, WA Kelso, WA Redmond, WA (Redmond, WA (Kent, WA 11-incoln City, OR Renton, WA Renton, WA ISeattle, WA JDesMoines, WA IDesMoines, WA IDesMoines, WA (DesMoines, WA (DesMoines, WA Tukwila, WA Bellevue, WA IHappyValley, OR W. FINANCE AND SAFETY COMMITTEE Meeting Minutes August 21, 2012 5: 15p. in.; Conference Room 43 City of Tukwila Finance and Safety Committee PRESENT COUncilmembers: De'Sean Quinn, Chair; Dennis Robertson and Kate Kruller Staff: David Cline, Peggy McCarthy, Jennifer Ferrar Santa -Ines, Cindy Wilkins, Craig Zellerhoff, Stephanie Brown, Kim Gilman, Jack Pace and Kimberly Matej Guests: Chuck Parrish, resident CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:17 p.m. Connniltee Chair Quinn changed the order of the agenda from that as outlined in the agenda packet front cover sheet. The order in which items were discussed is outlined below. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Police Uudate: 2012 2" Ouarter Reoort As information only, staff utilized a PowerPoint presentation to update the Committee on items of significance that occurred in the Police Department during the second quarter. The information included highlights, crime statistics and crime reduction strategies. INFORMATION ONLY. B. Ordinance: Amendments to TMC Title 5 Business Licenses and Reeulations Staff is seeking Council approval of several amendments to Tukwila Municipal Code (TMC) Title 5: Business Licenses and Regulation in an effort to provide clarity and increase efficiency and applicability of the TMC. Staff is seeking amendments to the following sections: Definitions of Business and Business License Required Provides for clarity; adding that any activity, occupation, pursuit or profession located in or engaged with the City regardless of physical location defines a business and will require a business license. Temporary Business Licenses With the exception of City- sponsored special events, which would be exempt; this change charges a $67 fee per temporary business license which is the minimum charge for a regular business license. Committee Chair Quinn requested that staff provide an estimate of late /penalty fees paid in 2012. Fee for Late Acquisition or Renewal Provides for greater clarity and establishes stricter penalties for late renewals. in regard to late acquisition fees, staff proposes removing the grace period and immediately processing the late fee. Various Housekeeping Changes Minor, non- substantive changes that make grammatical corrections and references as well as adding appeal language. The Committee is forwarding this item with unanimous approval to the Council; however, Chuck Parrish, resident, asked that the Council consider a discussion regarding the definition of Business and Business License Required as summarized above. UNANIMOUS APPROVAL. FORWARD TO AUGUST 27 COW FOR DISCUSSION. 19