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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. L O7.1 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