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Home My WebLink About04-09-18 City Commission Packet Materials - CII1. Ordinance 2001 Final, Amending BMC, Business License Fees Commission Memorandum REPORT TO: Mayor and City Commission FROM: Martin Matsen, Community Development Director Chris Saunders, Community Development Manager SUBJECT: Final Adoption of Ordinance 2001, Amending Chapter 12 of the Bozeman Municipal Code, Business Licenses to clarify determination of license fees. MEETING DATE: April 9, 2018 AGENDA ITEM TYPE: Consent RECOMMENDATION: Final Adoption of Ordinance 2001, Amending Chapter 12 of the Bozeman Municipal Code, Business Licenses to clarify determination of license fees. BACKGROUND: The Commission adopted Ordinance 1948 on May 9, 2016. One of the actions of the ordinance was to establish business license fees by resolution of the City Commission. The Commission did so by Resolution 4686 which simply carried forward the previous fee schedule from ordinance. As Community Development worked to create process improvements the complexity of the business license fee schedule was identified as a barrier to simplifying the annual renewal process. The Commission adopted Resolution 4855 on December 11, 2017. Resolution 4855 simplified the fee structure and has made administration of the program more efficient. When Ordinance 1948 was drafted some complicating language about late fees was not edited. A conflict between Ordinance 1948 and Resolution 4855 has been identified and needs to be corrected. The Commission provisionally adopted Ordinance 2001 on March 29, 2018 to resolve the conflict on a vote of 4-1. AMENDMENTS: The change will simplify the business license regulations and make reference for fees which will be adopted by Resolution as earlier decided by the Commission. As the code presently exists, people are late submitting a renewal, send in the wrong money to pay for the renewal and then their application is incomplete so they have to do a change which makes them more late which changes the money they owe. It is a very frustrating task loop for everyone and does not serve anyone well. It can end up costing more in late fees than the original license cost. 282 The ordinance also clarifies that the application fees are to be a cost recovery tool rather than a general fund revenue source. ALTERNATIVES: As directed by the Commission. FISCAL EFFECTS: None are anticipated at this time. Report compiled on: March 30, 2018 Attachment: Ordinance 2001 283 Page 1 of 5 ORDINANCE NO. 2001 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA TO AMEND SECTION 12.02.120 TO REVISE PENALTIES RELATED TO BUSINESS LICENSES. WHEREAS, the City of Bozeman adopted business license requirements by approving Ordinance No. 1273 on November 21, 1988; and WHEREAS, the business license requirements include compliance with all applicable zoning, building and fire codes, and other laws and regulations which protect the health safety and welfare of the citizens of the city; and WHEREAS, the City Commission consolidated administration of business licenses by adoption of Ordinance No. 1948 on May 9, 2016. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 Legislative Findings: The City Commission hereby adopts the following findings: 1. The above recitals are incorporated herein. 2. The proposed amendments continue process improvement and are consistent with the intent of the City Commission in Ordinance No. 1948 to improve administration of business licenses. 284 Ordinance No. 2001, Business License Fees Page 2 of 5 3. Section 12.03.010 specifies business license application fees are to be set by resolution of the City Commission. 4. Section 12.02.120 currently requires a late penalty based on a fixed percentage of license fees, which creates unnecessary administrative complexity for staff and confusion for business license holders seeking to renew their licenses, and is inconsistent with the fee schedule in Resolution 4855. Section 2 That Section 12.02.120 of the Bozeman Municipal Code be amended as follows: Sec. 12.02.120. – Noncompliance; penalty. Failure of a business to either obtain a new business license or to renew a business license as required by this chapter shall will result in a delinquent charge as established by resolution of the city commission of ten percent of the annual license and inspection fee, for each month the application is late. Failure to renew a business license as required by this chapter may result in suspension and/or revocation of the license pursuant to section 12.02.170.A. Violations of this chapter may result in civil suit to recover unpaid fees and/or criminal prosecution pursuant to sections 12.02.210, 12.02.220, and 1.01.210. Section 3 That Section 12.03.010 of the Bozeman Municipal Code be amended as follows: Sec. 12.03.010. – Business license fees. All business license fees, unless otherwise specified in this chapter, shall be are based on the square footage of the business being licensed in consideration of the costs of administering this chapter and the regulatory costs incurred. The license fee is made up of two components: the business registration fee, and a regulatory compliance fee. The fee schedule shall be approved by resolution of the city commission. 285 Ordinance No. 2001, Business License Fees Page 3 of 5 Section 4 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 5 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this Ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 6 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this Ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 7 Codification. This Ordinance shall be codified as indicated in Sections 2 and 3. 286 Ordinance No. 2001, Business License Fees Page 4 of 5 Section 8 Effective Date. This ordinance shall be in full force and effect 30 days after final passage. 287 Ordinance No. 2001, Business License Fees Page 5 of 5 PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 26th day of March 2018. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ____________________________________ ROBIN CROUGH City Clerk FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the 9th day of April, 2018. _________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 288