HomeMy WebLinkAboutITEM VIII-A-1AGENDA BILL APPROVAL FORM
WASHINGTON
Agenda Subiect Business Licensing Date:
December 9, 2003
Department: Attachments: Budget Impact:
Planning / Legal Ordinance No. 5814
Administrative Recommendation:
City Council introduce and adopt Ordinance No. 5814.
Background Summary:
Last year the Council adopted a new Business License Ordinance. It replaced the old business
registration process with a comprehensive code that utilized a licensing process to insure compliance with
life/safety codes and related issues. Mayor Lewis asked the Auburn Chamber to take the lead in
developing a draft Code. They performed a community service and produced a well thought through
model that the Council was able to implement with only a few minor edits.
We have had about six months to use the new code. While it has generally worked well, staff developed
some suggestions for fine-tuning. The first two improvements are process-related and required no
changes to the code.
1 The time needed to complete review of license requests was taking longer then was desired. Staff
dissected the flow of the permits and found two points at which changes could be made. The first dealt
with intake in the City Clerk's office. Because of the press of other work that has strict timelines in the
Clerk's Office (public records requests), there may have been some occasions when business license
applications were not forwarded the day of receipt. For that matter, past practice (going back years) was
to circulate business license applications on a weekly basis. Based upon the suggestions received to
improve the system, it was agreed that business license applications would be routed as they are
received.
2. Business License applications were first routed to Planning to check on land use issues, before being
sent on to Building and Fire. The thinking was that a large number of requests may be rejected for non-
conformance with Zoning Codes and this could eliminate some otherwise wasted effort with Building and
Fire. We found that less than 5% of applications are denied based upon land use issues. The system
was changed so that applications now routed in parallel to all three Departments, again with a goal of
reducing time needed to review.
Reviewed by Council & Committees: Reviewed by Departments & Divisions:
[] Arts Commission COUNCIL COMMI'I-I'EES: [] Building [] M&O
[] Airport [] Finance [] Cemetery [] Mayor
[] Hearing Examiner [] Municipal Serv. [] Finance [] Parks
[] Human Services [] Planning & CD [] Fire [] Planning
[] Park Board []Public Works [] Legal [] Police
[] Planning Comm. [] Other [] Public Works [] Human Resources
Action:
Committee Approval: []Yes []No
Council Approval: []Yes []No Call for Public Hearing / /__
Referred to Until / /
Tabled Until / /
Councilmember: Cerino Staff: Krauss / Held
Meeting Date: January 5, 2004 Item Number: VIII.A. 1
AUBUPd'-,I * MORE THAN YOU iMAGINED
Agenda Subiect
Business Licensing
Date:
December 9, 2003
Several other concerns needed to be dealt with and these did involve issues with the Code:
1. As drafted, a Business License cannot be issued until the applicant has to demonstrate compliance
with Life and Safety Codes. Yet adherence to these Codes cannot be verified until the business has
moved in and made any improvements. So applicants where being advised to move into their new
location without a Business License so that inspections could be made. This is a classic "Catch 22" were
a business is directed to ignore one section of the code temporarily to satisfy another. It is important to
note that this issue does not arise if there is new construction or a substantial remodel where Building
Permits are required.
2. Unlike many other cities, Auburn Code does not require a Certificate of Occupancy before a business
can open its doors. In Auburn, the Business License itself serves the purpose by, in essence not being
issued until codes are satisfied. This put the City in the position of not being able to issue Licenses over-
the-counter or with very short turn around times since inspections needed to be scheduled and
sometimes corrections had to be made and re-inspected. Here again, this does not apply to businesses
locating in new or substantially remodeled buildings where Building Permits are required. The types of
things that are dealt with by inspections when a tenant simply reoccupies a space are the presence of fire
extinguishers, emergency egress routes being open, tall rack systems being bolted to the floor, etc.
Staff met with Chamber representatives who worked on the original code to make them aware of these
problems and discuss solutions. They agreed in principal with the amendments outlined below and have
since had an opportunity to review and comment on the ordinance itself.
The amendment addresses both issues by creating a Conditional Business License that may be issued
when Building Permits aren't required. The Conditional License would allow the business to be issued
the License over-the-counter, occupy their location and provide up to 60 days for inspection by Building
and Fire staff. It is a simple and we think rather elegant approach. Businesses can now move in without
being in violation of the Code and Licenses can in many cases, now be issued very quickly.
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Page 2 of 2 Item: VIII.A.1
ORDINANCE NO. 5814
AN ORDINANCE of the City Council of the City of Auburn,
Washington, amending Sections 5.10.020, 5.10.040 and
5.15.020 of the Auburn City Code, relating to General
Business Licenses
WHEREAS, the provisions of the Auburn City Code (ACC) include provisions
that identify and provide Business Licensing regulations and requirements; and,
WHEREAS, the current provisions of the Business Licensing regulations and
requirements, Chapters 5.10 and 5.15 ACC, and Ordinance Number 5754, were the
product of a cooperative effort by City representatives, members of the Auburn
Business Community and the Auburn Chamber of Commerce; and
WHEREAS, as the new provisions have been implemented, this same
cooperative group has proposed refinements to assist the process in better serving the
business community and the citizens of the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
SECTION ONE. AMENDMENT OF CITY CODE.
That Section 5.10.020 of the Auburn City Code is amended to read as follows:
5.10.020 Definitions.
For the purpose of this Chapter and Chapter 5.15 of the City Code, the following
terms, phrases, words and their derivations shall have the meaning given in this
section.
A. "Business" means all activities, occupations, trades, pursuits, professions, and
matters located within the city or within the city's jurisdiction, with a physical presence in
the city and operated on a permanent or ongoing basis whether operated with the
object of gain, benefit, advantage or profit, or operated not for profit, to the business
enterprise or to another person, directly or indirectly; provided that "business" shall not
mean governmental agencies.
B. "Business enterprise" means any entity, person, partnership, association,
corporation, trust, society, or club engaged in a business within the city of Auburn.
C. "Director" means the director of planning and community development or the
city's designee.
D. "Department" means the city of Auburn department of planning and
community development.
E. "Employee" means any person employed at any business enterprise who
performs any part of their duties within the city. All officers, agents, dealers,
Ordinance No. 5814
December 5, 2003
Page 1
franchisees, etc., of a corporation or business trust, and partners of a partnership,
except limited partners, are employees within this definition.
F. "Engage in business" means to commence, conduct or continue in any
business.
G. "Licensee" means any business granted a business license.
H. "Nonprofit" means any business enterprises registered as non-profit
corporations within the state of Washington or granted nonprofit status through the
code of the Internal Revenue Service of the United States.
I. "Physical presence" means an address where the business is located. A post
office box with an Auburn address for a business is considered a physical presence.
h~v~ ~ b,Jsin~ss ~ic~ns~."P,ace of Business" means the physical location of the
business.
K. "Business license year" means that period of time be~een July 1st of one
year and June 30th of the following year.
L. "Life and safety codes" mean building codes, fire codes, electrical codes and
other codes of the City relatinq to health, safety and related requirements for use and
occupancy of buildinqs. (Ord. 5754 ~ 1, 2003; Ord. 4012 ~ 2, 1984.)
SECTION TWO. AMENDMENT OF CITY CODE.
That Section 5.10.040 of the Auburn City Code is amended to read as follows:
5.10.040 General business license required.
A. Any person desiring to establish or conduct any business enterprise or
undertaking as defined in ACC 5.10.020 within the corporate limits of the city, shall first
apply to the city clerk for a license to conduct such business and obtain such license as
approved by the city. The application shall be upon a form furnished by the clerk on
which the applicant shall state the business name, address, and telephone number; the
nature of the business activity or activities in which the applicant desires to engage; the
place where the business will be conducted; the number of employees, and the name
of the contact person along with an address and telephone number, and the business
identification number issued by the state of Washington; and the IRS letter testifying to
nonprofit status or the copy of the application to the IRS.
B. It is unlawful for any person to operate or physically conduct any business
within the city without having first obtained a general business license for the current
business year or portion thereof. The applicant for a business license required under
this title shall be over the age of 18 years. If any person required to pay a license fee,
by the terms and provisions of this chapter, for any period fails or refuses to do so, they
shall not be granted a license for the current period until such delinquent license fee,
together with penalties, has been paid in full.
C. Specific businesses identified in Chapters 5.20, 5.30, 5.44, 5.82, 5.84, 5.88
ACC or elsewhere in this title or other titles of the Auburn City Code will be required to
obtain an individual business license as otherwise indicated.
D. Any business within the city jurisdiction on any proiect requiring a permit must
have a business license. (Ord. 5754 § 1,2003; Ord. 4012 § 2, 1984.)
Ordinance No. 5814
December 5, 2003
Page 2
SECTION THREE. AMENDMENT OF CITY CODE.
That Section 5.15.020 of the Auburn City Code is amended to read as follows:
5.15.020 Qualifications of licensees - Permit requirements - Conditional licenses.
A. No license shall be issued, nor shall any license be renewed, pursuant to the
provisions of this chapter to:
1. An individual who is not 18 years of age at the time of application.
2. An applicant who has had a similar license revoked or suspended pursuant to
applicable city codes or Section 6.01.150 of the King County Code (KCC) or other
similar code provision of any jurisdiction, within two years prior to the license
application.
3. An applicant whose business activities are vio!~tive ofviolate or are not in
compliance with state, federal or local laws.
4. An applicant whose business activities are injurious to the public health or
safety.
B. No person or business may reapply for a denied or revoked business license
merely by renaming the business. The denial or revocation of a license applies to any
business entity, regardless of its name, that is operating under the same ownership
and/or management and engages substantially in the same type of business enterprise
as that of a business that has been previously denied a license or has had its license
revoked under this chapter within a year of such application for a license.
C. In any case where an applicant seeks a business license for a business to be
located in a buildinq or structure for which a buildinq permit is required, whether as a
newly constructed buildinq or structure, or a remodeled buildinq or structure, the
building permit process, includin.q final inspections/issuance of occupancy permits, shall
be completed prior to issuance of a business license.
D. In any case where an applicant seeks a business license for a business to be
located in a buildinq or structure for which no buildinq permit is required, the applicant
shall be entitled to receive a "conditional" business license, assuming that all other
applicable licensinq requirements of this Title have been met, which conditional license
shall be conditioned on the business premises beinq inspected for compliance with life
and safety codes, and subject to the following:
1. The applicant shall arranqe for such inspection(s) within sixty (60) days of
commencinq business at the premises under the conditional business license by
contacting the Planninq Department of the City, provided that the applicant may request
from the Planning Director an extension of said the sixty (60) day time period, which
request may be granted upon a good cause showing of why the inspection could not be
timely completed.
2. Failure of the applicant to arranqe for and complete the life and safety code
compliance inspection within the sixty (60) day time period shall cause the conditional
business license to be automatically cancelled. Such cancellation shall not require
compliance with the provisions for denial, revocation or suspension of business licenses
herein. Thereafter, until all licensinq and inspection requirements have been fully
Ordinance No. 5814
December 5, 2003
Page 3
complied with, any continued operation of the business shall constitute a violation of
this Chapter. (Ord. 5754 § 2, 2003.)
SECTION FOUR. GENERAL SEVERABILITY.
That if any provision of this Ordinance or the application thereof to any person or
circumstance is held to be invalid, the remainder of such code, ordinance or regulation
or the application thereof to other person or circumstances shall not be affected.
SECTION FIVE. IMPLEMENTATION.
The Mayor is hereby authorized to implement such administrative procedures as
may be necessary to carry out the directives of this legislation.
SECTION SIX. EFFECTIVE DATE.
That this Ordinance shall be in full force and effect five (5) days after publication
of the Ordinance Summary.
INTRODUCED:
PASSED:
APPROVED:
ATTEST:
PETER B. LEWIS, MAYOR
Danielle E. Daskam, City Clerk
PUBLISHED:
Ordinance No. 5814
December 5, 2003
Page 4