HomeMy WebLinkAbout2010-1206 Study Session PACKET
CITY OF
ASHLAND
Important: Any citizen may orally address the Council on non-agenda items during the Public Forum. Any citizen may submit
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CITY COUNCIL STUDY SESSION
AGENDA
Monday, December 6,2010 at 5:30 p.m.
Siskiyou Room, 51 Winburn Way
5:30 p.m. Study Session
1. Look Ahead Review
2. Does the Council want to revise the business license ordinance? [20 Minutes]
3. What direction does the Council have related to City Council Goal Setting for 2011?
[20 Minutes]
In compliance wilh the Americans with Disabililies Act, if you need special assistance to participate in this.
meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-
2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to
ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I).
COI iNCIL MIX-TiNe,S Ai([ BROADCAST Li\T ON (,i i!\NNEL <)
ViSi'I Till cnv 01' iISHL\NIYS WIll SITF ilT WWW.\Slil.iINIJORI'S
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City of Ashland Council Meeting Look Ahead
.....THIS IS A DRAFT AND SUBJECT TO CHANGE.....
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III SiiidYlSiSslOntCancelled 1121201
III _8e~cop.tljffiJf.Oi'Id'-pal:lliiiilC_o.un.clllMem~.ol:S16:~.OJPiiiWIII - 1121211
Reoular Council Mootlna 12/21
1 Award of Bid for Parkina Enforcement Contract (Lee/Kariann) Finance CONS
2 Finalize Parks purchase of Lower Clay Street Property (Doni RES
Brandon/Meaan) Parks CD Leaal UNFIN
3 Aooointment of budoet committee members (Barbara) Recorder NEW
4 Uodate to Buiidina Codes Ordinance Ch.15 (Meaan) Leaal CD ORO~2
5 Ordinance establishing Fees and Charges far Municipal Court Legal ORD.2
Administration (Meaan)
6 Resolution re: Fees and Charges for Municipal Court Legai RES
Administration (Meaan)
7 Advanced Financina/ Re-imbursement Districts (Mike F.I PW ORO.2
6 Aooroval of creation of FireWise Commission (John) Fire ORD-1 ORO-2
. "dC..:.' StiidvXSesiiloifC"ric"lIed . . 1/3
Reaular Council Meotlna 1/4
9 Swearina in of Councii (Barbara) Recorder PRES
10 Election of Councii Chair IBarbara) Recorder PRES
11 State of the Citv soeech bv Mavor Mayor PRES
12 Approvai of creation of AFN Executive Advisory Ad Hoc Board CONS
I'Rob) IT
13 Award of bid for 3rd party administration of worke(s comp CONS
I'Lee/ Tina) Finance HR
14 Approval of IGA for Emergency Notification System CONS
If Rob/John/ Terrv) IT Fire Police
15 85 Winburn Way Council call up of Land Use Appiication and CONS
Develonment Aareement (Billl CD
16 AFN Master Contract (Robl IT UNFIN
17 Aooroval of creation of FireWise Commission (John Fire ORD.2
":V::'';jiSt,fdlilSessloii,C"ifcelled;,MLKO"y', ". 1117
Reaular Council Meetlna 1/18
18 Ashland Creek Bacteria Study - presented by Leslie Adams Admin PW PRES
If Martha/Mike/Don) Parks
19 Report to Council on Library Services (Ann) Admin CONS
20 Public Hearing regarding 85 Winbun Way (Bill) CD PH
21 Uodate on TSP (Bill/ Mike) CDPW NEW
22 Ordinance re: business license ordinance (Meaan) Leaal ORD-1 ORD.2
Page 1 of 2
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City of Ashland Council Meeting Look Ahead
.....THIS IS A DRAFT AND SUBJECT TO CHANGE.....
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. SliidVISiSslOiifriii'lSli~loulRoom _ _ _ _ __1l'i31i1
23 Discussion on downtown! homeless issues (AnnfTerrv/Linda Admin Police CD 55
24 Update on Council Goals regarding efficient use of resources 55
Adam) Admin
Reaular Councli Meetlna 2/1
25 Ballot Measure lanauaae for Fire Station NO.2 (Ann/John) Admin Fire UN FIN
l1ordinaD""~-"j business license ordinance (MeQ~ ORD-2
. StUclVISiSsIOnT{lii'lSii~1 .0ulRoom _ - - - - - - - .21.1~1
27 Soecial Event Permits (Mikel PW 55
I Reoular Council Meeting i I' 2115
~S'tuaVISiSsIOnT(lii'lSiii~IOUIROO~_ - - - - - - - - - .21281
Reaular Council Meettno I 3/1
~s'tuaVIse8SI0nT(lii'lSiii~1 OUIROOni~_ - - - - - - - - - - - .3/,1~1
28 Wastewater Masterolan Ucdate (Mike) PW 55
I Reaular Council Meettno I I 3/15
I I I
. F.utUfi)T Ci'lNBt\yitiSCl1idiilid - - - - - - - - - - - - - -
1 Study Session with OSF Board
2 Follow u on next steos OIl TAP
3 Discussion reaardlna urban renewal conceals
4 IT Stralealc Plan
I Spniiii1Break120;1;1IllMarch12~1ll26J(notraICouncllrwee~)_1
Page 2 of 2
12/3/2010
CITY OF
ASHLAND
Council Communication
Meeting Date:
Department:
Secondary Dept.:
Approval:
Discussion on Business License Ordinance
December 6, 20 I 0 Primary Staff Contact: Megan Thornton
City Attorney's Office E-Mail: thorntm@ashland.or.us
None Secondary Contact: ' None
Martha Bennet Estimated Time: 20 minutes
Question:
Does the City Council want to revise the business license ordinance?
Staff Recommendation:
Staff requests the Council provide direction to begin revising the business license ordinance. After
discussing this issue with city department heads, staff would recommend revising the ordinance to
provide a regulatory aspect as opposed to a purely revenue generating mechanism.
Background:
The business license ordinance was adopted almost twenty years ago. There have been a number of
enforcement cases from different departments that have suggested that changes to the business license
may be important for the City. For example, business licenses are currently issued to applicants even
if the business is in violations of the land use code, food and beverage tax, or the transient occupancy.
lax. Council should discuss whether it wants to license businesses in violation of other city codes.
The threshold issue is whether the Council wants to use the business license ordinance primarily as a
revenue generating means or as a regulatory one. The current ordinance combines the two purposes,
but the current ordinance does not sufficiently accomplish either of these goals. Any revenue
generating opportunity is being hindered because the fees are adopted in the ordinance and they have
not been changed since the adoption of the ordinance in 1991. In addition, the ordinance does not
sufficiently regulate business because there are no criteria that would allow staff to deny a license to an
applicant.
Discussion:
This communication provides a list of the strengths and weaknesses to each approach to business
license ordinances. In addition, there is a short list of provisions that should be changed in the current
ordinance depending on the Council's direction. These lists are by no means comprehensive, but it is a
starting point for discussing the important issues and providing some suggestion as to how the City
could enact an ordinance that would better achieve its goals.
1) Revenue Generating Business Ordinance
Strengths
. Generates revenue.
. Easy for staff to administer.
. Approval process and issuance oflicense is faster.
. Does not require any enforcement action as long as the fee is paid.
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CITY OF
ASHLAND
Weaknesses (
. Does not provide criteria for denial of a license.
. Does not allow for revocation of a license.
Suggested Changes
. Add a disclaimer to the purpose stating that issuance of a license does not give the licensee the
right to violate any other laws.
. State that the license shall not be posted, but that it shall be available upon request of the City.
. Adopt fees by resolution.
1) Regulatory Business License
Strengths
. Provides criteria for denial of a business license.
. Provides criteria for revocation of a business license:
. Generates revenue.
Weaknesses
. May require more staff time to issue the initial license.
. May require an application to reviewed by multiple departments.
. May lead to enforcement actions to deny and/or revoke licenses.
Suggested Changes
. Add criteria for denial and revocation of business licenses.
. Incluae an appeals process or adopt the use of the Uniform Administrative Appeals process for
individuals changing revocation or denial.
. Consider listing actions that may be so egregious that immediate revocation would result.
Related City Policies:
City Charter Article 10, Ordinance adoption provisions
Council Options:
(I) Provide staff with direction for amending the business license ordinance.
(2) Choose not to amend the business license ordinance at this time.
Potential Motions:
Staff:
Council:
Attachments:
AMC 6.04 - Business Licenses
League of Oregon Cities - Policy Considerations and Examples from Oregon Cities
Page 2 of2
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City ,?f Ashland, Oregon - MlDlicipal Code
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6.04 Business Licenses
6.04.010 Purpose and Scope
The business license taxes imposed by the terms of this Chapter are for revenue purposes only.
Neither the acceptance of the prescribed tax nor the issuance of the applicable license shall be
construed to constitute a regulation of any business activity or a permit to engage in any
activity otherwise prohibited by law or ordinance, or a waiver of any regulatory licensing
requirement imposed by any ordinance other than this.
6.04.020 Definitions
A. Business. All professions, trades, rental activity, occupations and activities, carried on with
the intent:
L That a profit be realized therefrom; and
2. That the profit, if any, inure to the benefit of the owner or owners of the activity.
B. Profit. The excess gross receipts over expense.
C. Expense. The cost of goods sold, the expense of services rendered, and all other expenses
or disbursements, accrued or otherwise, ordinarily incidental to the operation of the business.
D. Doing or transacting business. Any act or series of acts performed in the course or pursuit of
a business activity.
E. Person. Includes a person, co-partner or corporation. Singular includes plural.
F. Owner. A person having an interest in a business, and actively engaged in the operation of
said business.
G. Employee. Any individual who performs service for another individual or organization having
the right to control the employee as to the services to be performed and as to the manner of
performance. For purposes of this ord;'nance employee also means a licensed real estate sales
person or associate real estate broker who engages in professional real estate activities only as
an agent of a real estate broker or organization.
H. Rental Activity. A person who accepts payment for the use of six or more properties. (Ord.
25381989; Ord. 26311991)
6.04.030 Business License Required
It shall be unlawful for any persons for themselves, or as agent or employee of another, to
transact and carryon any business, trade, profession, calling, or occupation within the City of
Ashiand, Oregon, unless:
A. Such business activity has been duly licensed as herein provided; and
B. The license is valid at the time of the transaction. (
i
6.04.050 License Applications
A. Applications for business licenses shall be submitted on forms to be provided by the Finance
Department. Every such application shall be signed by the owner or a duly authorized agent
and shall contain the following information:
1. Name of person or persons owning business; if a corporation, the name of an authorized
officer;
2. Assumed business name, and phone number, if any;
3. Address of business premises and mailing address and phone number;
4. Nature of business;
5. Number of employees;
6. Emergency contact name and telephone.
B. Where the business includes activities classifiable in two (2) or more categories, the primary
or predominant activity should be designated.
C. Where the business premises of an applicant are situated outside the City, the application
shall specify the number of employees to be engaged in the transaction of the business within
(
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the City, and the license issued on the basis thereof, shall be valid only to permit the specified
number of empioyees to transact business within the City at anyone time.
D. License taxes shall'be computed on the basis of information contained in the application, and
it shall be unlawful for any person knowingly to sign or submit a business license application
containing false information.
E. The City shall prepare blank applications and make them available at City Hall upon request.
Failure to receive or secure a form shall not relieve any person from the obligation to pay a
license fee and obtain a license under this ordina~ce. (Ord. 2631 1991)
6.04.060 Two or More Businesses on Same Premises
If two (2) or more differently classified, but related businesses, are carried on in the same
premises by the same owners, one license issued in the name of the business to which the
premises are primarily appropriated, and based upon the total number of employees or other
units on the whole premises, shall be sufficient for all such activities. Any business activity
leased, under concession to, or owned wholiy or in part by a different person or persons on the
same premises must be separately licensed.
6.04.070 Two or More Business Premises
The conducting of a business or businesses at two (2) or more separate locations shall, for the
purposes hereof, be deemed to be separate businesses, and each shall be subject to the license
tax herein provided for, except that rental properties, warehouses and distributing plants used
in connection with and incidental to a business licensed under the provisions of this Chapter
shall not be deemed to be separate places of business, or branch establishments, or separate
types of businesses. (Ord. 253852, 1989; Ord. 2631, 1991)
6.04.080 License Tax Schedule
A person licensed under this chapter shall pay an annual license tax In the following
amount:
A. An application fee (tirst time licensee) of$IO per month (up to II months)
this includes the fIrst two employees. Additionally, $5.00 will be charged for
each additional individual. The number of employees should be counted
based at the start of the business. Each employee will be counted as one
regardless of their status as part time, full time or temporary.
B. A renewal fee of $75.00 includes the fIrst two employees and for each individual
in excess of two, add $10.00 for each individual. The number of employees should
be counted based on the anticipated number of employees on the payroll as of July.
Each employee will be counted as one regardless of their status as part time, full
time or temporary.
I. In arriving at the number of individuals carrying on a business, the Finance
Department shall count the proprietors, offIcers, partners and associates
actively engaged in such business and lhe individuals employed regularly or
on a part-time basis. Individuals employed by an owner or proprietor of a
business who work entirely outside the corporate limits of the City shall not
be counted. Trade apprentices receiving no compensation shall not be
counted.
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(Ord 2926; 2006)
6.04.085 License Tax Exemptions
A. The following persons are exempt from the license requirements imposed by the Business
License Law.
L Persons whom the City is prohibited from licensing or taxing under the constitution or laws of
the United States, the constitution or laws of the State of Oregon, or the Charter of the City.
2. Non-profit or charitable, religious or educational organizations which have received a tax
exempt certificate from the Internal Revenue Service, ~nd which devote the net proceeds from
the sale of goods or services.to the purpose of the organization.
3. The sale of personal property acquired for household or other personal use by the seller,
provided that the total length of sale is fewer than 4 days in anyone calendar year.
4. The operation of a display space, booth or table maintained for displaying or selling
merchandise at any trade show, convention, festival, fair, market, or swap meet provided that
the sponsor of the event is licensed to do business.
5. Any Family Day Care Provider who regularly provides day care in the provider's home in the
family living quarters, or any babysitter who goes into a home of a child to give care during the
temporary absence of the parent, legal guardian, or custodian.
6. Any unincorporated business activity carried on by individuals under the age of 18. (Ord.
2122 1981; Ord. 231551, 1984; Ord. 2631 1991)
6.04.090 Term
The business license term shall be for a fiscal year, beginning July I 'and ending June 30
of the next year, and business license taxes are due annually on or before July I of the
fIscal year for which the license is required. If, after September 30, a person begins a
business required to be licensed under this Chapter, the tax shall be pro-rated on a
quarterly basis. (Ord. 2734, 1994;Ord 2926. 2006)
6.04.100 Issuance of License
Upon receipt of an application duly signed and executed as hereinabove prescribed, together
with the required tax, the Finance Department shall issue a business license to any applicant
desiring to transact or conduct any lawful business within the City. If the City has knowledge
that the applicant is engaging in, or proposes to engage in an unlawful activity, the City shall
return the fee to the applicant, along with the reason for so doing, and shall refuse to issue a
license.
6.04.105 Duplicate License
A duplicate license shall be issued upon application and payment of a fee of $10 to repiace the
license previously issued which was lost 'or destroyed
6.04.110 Transfer of License
No transfer of assignment of any license issued under this Chapter is valid or permitted, except
that when a person sells or transfers a business for which such iicense has been issued, the
purchaser is not reqUired to pay an additional license tax for the remainder of the fiscal year,
provided the person selling the business notifies the Finance Department in writing of the
transfer of the business. If the location of a business is changed, but the nature of the business
is unchanged, the license may be transferred to the new location.
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6.04.115 Consumer Protection-Revocation
Any individual or finn against whom a judgment is entered for fraud related to the
business for which the license is issued, or which occurred within five (5) years preceding
the date of application, shall be subject to denial or revocation of a license to conduct
business within the City of Ashland. Denial and or Revocation are subject to the appeal
process of AMC 2.30.
(Ord 3024, 2010)
6.04.120 Temporary License
If a business licensed under this chapter is for a limited duration of not more than 30 days
the fee will be $25, regardless of the numbers of the employees. (Ord 2926, 2006)
6.04.130 Delinquent Penalty
There shall be a penalty often percent (10%) with a minimum of$25 added to all
business license taxes paid later than 30 days after they are due. (Ord 2926, 2006)
6.04.140 License Must be Displayed
At all times after the issuance of the business license, the licensee shall cause it to be posted in
a conspicuous place upon the business premises, available for inspection by the public and by
employees and prospective employees of the business, provided:
A. That where the iicensee has no office, business premises or other established place of
business within the City I the license shall be in possession of a representative of the business
present within the City at all times during which business is being transacted by an employee or
representative within the City.
6.04.150 Penalties
A. Violation of AMC 6.04.030 [Operating business without license] in accordance
with this Chapter shall be considered a Class I violation, subject to the limitations of
AMC 1.08.
"
B. Any violation of the requirements of this chapter, not addressed in A above,
shall be a Class III violation as defmed by AMC 1.08 and punishable as set forth in
that section.
(Ord 3024, 2010)
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6.04.160 Evidence of Doing Business
In the trial of any alieged violation of this Chapter, evidence of advertisements by newspapers,
radio, television or other medium or by signs displayed for public view, that such business was
being conducted expressly or impliedly offering to seli goods or services to the public or any
segment thereof, shali constitute prima facie evidence that the defendant was transacting
business within the City on the day or date during which such representations were made.
6.04.170 Confidentiality
Except as otherwise required by law, it shall be unlawful for the City, any officer,
employee or agent to divulge, release, or make known in any manner, any financial or
employee information submitted or disclosed to the City under the terms of this
Ordinance. Nothing in this Seclion shall prohibit:
A The disclosure of the names and addresses of any persons to whom
business licenses have been issued; or
B. The disclosure of general statistics in a form which would prevent the
identification of financial or employee information regarding an individual
business licensee or applicant; or
C. Presentation of evidence to the court, or other tribunal having jurisdiction
in the prosecution of a claim by the Finance Department; or
D. The disclosure of information when such disclosure of conditionally
exempt information is ordered under public records law procedures; or
E. The disclosure of records related to a business's failure to report and remit
the business license tax when the report or tax is in arrears for over six
months. The City Council expressly finds and determines that the public
interest in disclosure of such records clearly outweighs the interesl in
confidentiality under ORS 192.50 I (5).
(Ord 3024, 2010)
6.04.180 Examining Books, Records, or Persons
The City, for the purpose of ascertaining the correctness of any license application, or for the
purpose of estimating any license fee, may examine or may cause to be examined, by an
agent or representative designated by it, any books, papers or payroli records, state or federal
payroli reports, bearing upon the matter.
6.04.190 Appeals
Any person aggrieved by any detennination of the Director of Finance with respect to the
amount of such tax, interest, and penalties, if any, may appeal pursuant to AMC 2.30. The
Findings of the Hearings Officer shall be final and conclusive, and shall be served upon
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the appellant, in the manner prescribed above for the service of notice of hearing. Any
amount found to be due shall be immediately due and payable upon the service of notice.
(Ord 3024, 2010)
6.04.200 Records
It shall be the duty of every licensee to keep and preserve for a period of not less than 3 years
such books and records as will accurately reflect the number of employees for each license
year.
6.04.210 Time of Effect
This Chapter shall take effect on July 1, 1976, and remain in effect until repealed. (Ord. 1880,
1976; Ord. 19381977; Ord. 2142 1981; Ord. 2631 1991)
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Business License
Ordinances
Policy Considerations and Examples
From Oregon Cities
The City Center @LOC
December 2001
Business License Ordinances
Policy Considerations and Examples
From Oregon Cities
The City Center @LOC
December 2001
Researchers: Sadie Lowe and Stephanie Nixon
Contents (printed page numbering)
Introduction.
Policy Considerations
Issues and Questions to Consider
Legal Challenges
Administrative Concerns
1
2
2
.21
.25
Introduction
Cities have traditionally used business iicense programs to identify and regulate
those conducting commerce within the city limits. Often, the programs result in
revenue-raising for the city. There are many variations in approaches to business
license programs; this report attempts to outline the cho ices available to cities
wishing to develop or revamp a business license ordinance, and to provide
comparative data on license fees.
In preparing the report, City Center staff reviewed 92 ordinances from cities across
the state, selecting nine for inclusion as representative of differently-sized cities
that adopted various policy choices in their business license ordi nances. The City
Center @LOC thanks city officials in Ashland, Athena, Aurora, Canby, Cornelius,
Durham, Hillsboro, Troutdale, and Winston for their cooperation. Thanks are also
extended to Attorney Ben Waiters of the City of Portland, who reviewed the
materials.
Policy Considerations
Business licehse ordinances are established either to raise revenue, to regulate
business, or both. Additionally, cities with these ordinances may intend to' protect
the health, safety, and welfare of the general public. By raising revenue from
business licenses - usually through an annual licensing fee - cities can more easily
pay for services such as police and fire protection. Cities also use business licenses
to maintain a list of existing businesses operating in the city. This allows the city to
ensure that business activities comply with applicable city ordinances, state laws,
and federal laws. It can provide business contact information for city public safety
officials in the event of local emergencies.
Issues and Questions to Consider
Cities have used various methods of licensing businesses within the city limits.
These methods include: requ iring all businesses to have a general business license;
requiring certain types of business es to have specialized licenses in addition to a
general license; requiring only specific types of businesses to have a license; and
requiring any business not otherwise licensed to obtain a general business license.
This report focuses on general business license ordinances unless otherwise noted.
Several questions should be addressed when considering the creation of a business
license ordinance. Following are some of the questions and concerns addressed by
the various cities' ordinances that we reviewed:
1. What is the purpose of the ordinance?
P Is the main concern to raise revenue?
P Is the main concern to regulate businesses?
P Is the concern to both regulate businesses and raise revenue'
R Many cities have created business license ordinances for regulatory
purposes.
R Other cities use busi ness license ordinances to raise revenue to defray the
costs of fire, police and other city services that are made available to these
businesses.
R Many cities have business license ordi nances that are intended both to
regulate business and to raise revenue.
R Several cities use business licenses to protect the general health, safety, and
welfare of the public.
2
R Some cities choose to reguiate businesses to ensure that businesses are
complying with applicable city ordinances, state and federal laws.
2. How do cities issue licenses?
P Cities have used various methods to issue business licenses. These include:
. Requiring all businesses to have a general business license.
. Requiring certain types of businesses to have specialized licenses in
addition to a general business license.
. Requiring only specific types of businesses to have a license.
. Requiring a business that is not otherwise licensed to obtain a general
business license.
3. How do cities determine that someone is "doing business" for purposes
of needing a license?
R Several cities indicate that evidence of advertisements in newspapers,
television, signs, etc. stating that such business was being conducted
expressly or impliedly offering to sell goods or services to the public or any
segment thereof. One cit y considers this to constitute prima facie evidence
that the defendant was transacting business within the city on the day or
date during which such representations were made.
R One city considers one business action - such as selling products, solicitation,
advertising, or displaying signs - as doing business in the city for purposes of
the ordinance
R One city considers activities such as advertising, delivering goods, providing
services, owning, leasing or renting property used in business, involvement in
production of income within the city as a presumption of doing business.
R Some cities also require home based businesses to obtain a business license.
4. What does a general business license allow a person to do?
R General business licenses allow that person to conduct business within the
city limits.
R Many cities specify that general business iicenses are not intended to be in
lieu of other specific business licenses that other city ordinances or state
laws require.
3
R Many cities specify that the coliection of a license fee shall not be construed
as a license or permit to the person or business to engage in activity or
business to the extent it is deemed to be unlawful, by the laws of the State
of Oregon, the United States or the city.
s. Who will administer the ordinance?
P Which city official(s) wili administer the city ordinance?
R Cities have assigned various city officials to administer the business license
ordinances. These include: City Recorder, City Manager, Finance Director,
City Administrator, a License Clerk, the Chief of Police, City Auditor, Bureau
of Licenses, or the City' Council.
P Wili the City Council be involved in administering the ordinance?
R Many cities that assign administrative duties to an individual other than the
City Council require the City Council to be involved in appea Is relating to the
business licenses.
6. What are the duties of the ordinance administrator?
P What are the responsibilities of the ordinance administrator?
P May the administrator approve or deny license applications?
P May the administrator revoke or suspend business licenses?
R Most cities aliow the administrator to approve or deny ali license applications
that are submitted.
R Many cities aliow the administrator to develop 'the business license
applications to be submitted by the businesses.
R One city aliows the administrator to issue licenses, however any applications
for a new type of business must be reviewed by the City Council.
R Many cities aliow the administrator to revoke or suspend a license of any
business which has violated a city ordinance.
R A few cities require the administrator to have various city officials review the
license application before a decision is made in order to ensure that the
business is in compliance with other city ordinances and regulati ons.
4
(
7. What information must the applicant submit with the application?
P Information that cities have required to be submitted in the license application
includes (but is not limited to):
. Name of busi ness
. Name of business owner
. Address and phone number of business
. Name of property owner where business is located
. Emergency contact person
. Number of employees/average number of employees
. [)escription of business activity
. Date of application
. Signature of the a ppiicant
. Names of i ndividua Is with an interest in the busi ness (such as proprietors
and owners)
. Proof of other Ii censes/certifications required by state or federal iaw to
conduct a particular tyPEC of business
. Any additional information available to help the city determine the
appropriate fee and enable the city to review the application
. Amount of fee paid.
8. Who must file a business license application?
R Many cities specify that individuals whose income is based on hourly, weekly,
monthly, or annual salaries are deemed not to be a person transacting
busi ness in the city.
R Several cities intend that business license fees are to be borne by the
employer for the priviiege of doing business in the city rather than the
employee as a cost of employment.
5
R One city requires every principal in the business to submit an application for a
license or a renewal for a license. This city considers a principal to include all:
owners, shareholders, partners, directors, officers, and managers. The city
manager may exempt certain principais from completing an application if
they determine that granting such an exemption is consistent with the
objectives of this code, and where the business demonstrates that those
principals play no role in the operation of the company.
9. What information must be listed on the license that is issued?
P Cities make their own determination about the information required. Cities
require different pieces of information to be listed on a business license. These
include (but are not limited to):
. Nature of business
. Address of business
. Date of license issuance
. Name of licensee
. Expiration date
. Signature of the administrator
. Corporate seal of the city.
10. Is an individual required to display a business license?
P Should a business license be displayed?
R Many cities require conspicuous display of business licenses at all times.
R A few cities req uire a business own er to show a license onl y upon request.
P What if an individual does not have an established place of business?
R Several cities require individuals without an established place of business to
continually carry the license with them.
11. What fees are charged?
P How are fees determined?
P Who sets the fees?
6
P May the fees be changed?
R Cities have chosen various methods for determining license fees. These
include:
. Charging a flat fee for all businesses in the city. .
. Charging a flat fee for each business classification.
. Charging a fee based on the number of employees.
. Charging a fee based on whether or not the business is located in or
outside city Ii mits.
. Charging a fee based on the duration of the particular business.
R Most cities allow the City Council to establish or change t he fees by passing
a resolution.
R Cities which charge a fee based on the number of employees generally
create an equation to determine the number of full-time employees. This
number is adjusted to account for temporary, part-time, or seasonal
employees.
R Cities that base the fee on the number of employees have either set a flat
fee to be charged for each empioyee (for example $5.00 per employee) or
charge a flat fee based on the total number of employees (for example 1-25
employees equals $75.00, 25-50 employee's equals $100.00).
R Some cities do not include employees who work full-time outside of city
limits as part of the calculation for fees based on the number of employees.
R One city bases the license fee on the net income of the business.
R One city charges businesses (except motels) a "parking management fee"
for off-street parking spaces not provided by the business.
R One city specifies that application fees are non-refundable.
12. Are there exemptions, either from the fee or the licensing
requirements?
. P Are certain businesses exempt from the license fee?
P Must these businesses obtain a license?
7
R Many cities exempt non-profit organizations from license fees.
R A few cities exempt individuals under the age of 16 who make less than a
certain amount of money.
R Many cities exempt federally tax-exempt businesses or organizations from
license fees.
R Most cities do not require individuals holdi ng garage sales to obtain a license
if the sale is less than a certain number of days and does not occur more
than a certain number of t:imes during the year. For example, a sale may
not last longer than three days and may not occur more than four times per
year.
R Some cities do not require a business to obtain a general business license if
the business is required to obtain a license under a different city ordinance or
regulation.
R One. city does not charge a business during its first year of operation.
However, the busi ness must obtain a license. The city requires that for a
business to qualify, it must not have operated during the previous calendar
year and does not allow a change of ownershi p to qualify for the exemption.
R One city exempts businesses whose gross receipts from all business within
and outside of the city is under $25,000 during the tax year.
R Many cities in the Portland metro area do not require construction or
landscape contractors to obtain a separate business license if they are
licensed under Metro's contractor's business license program.
R A few cities exempt contractors if they do not earn more than a specified
amount (for example, as long as income was less than $150,000).
R Several cities require exempt business es to obtain an exemption certi ficate
or a license. These businesses are generally required to complete and file
initial and renewal exemption applications.
R One city exempts non-resident wholesalers delivering goods to businesses
within the city.
R Several cities exempt individuais whose primary activity consists of delivering
goods inside the city for a business located outside the city.
R Many cities do not require a warehouse that is part of another licensed
8
business to obtain a separate license if the main business is licensed.
R One city exempts a municipality.
R One city exempts one time annual events from obtaining a license.
13. How are the fees collected?
R Most cities require an application and fee to be submitted to and approved
by the license administrator before a license will be issued.
R Most cities establish one day (for example, January 1" or July 1") on which
all business iicenses must be renewed and fees must be paid.
R One city allows the administrator to authorize payments by the iiable
individuals to be made on a quarterly, prorated basis.
14. How often must a license be renewed?
R Most cities issue business licenses for one year.
R Most cities issuing a license for one year prorate the cost of a business
license that is issued after the first day of the taxing year, so that the iicense
mut be renewed on the fi rst day of the next I icensing year.
R Many cities require obtainment of renewal licenses within a certain time
period of the old license expiring. For example, many cities give businesses
30 days to renew a license.
R One city requires business licenses to be renewed every twelve months from
the original date of issuance.
R One city treats a renewal application submitted less than 30 days before the
license expires, as an application for a new license.
15. What does the city do with the funds that are collected from the license
fee?
R Many cities use the money collected to defray the costs of general business
regulation or costs of municipal services such as police and fire protection.
R One city divides the money received 50-50 between the off-street parking
fund and the city general fund.
R One 'city distributes funds so that 86% of the funds go to a Community
Development fund, and 14% of the money is used for seasonal events to
9
promote the city and benefit the businesses.
16. May a busines~ be charged a reduced fee?
R Many cities charge a busi ness a reduced fee if the busi ness starts after a
certain time during the licensing year. '
R Many cities allow a business to pay a reduced fee such as one-quarter or
one-half depending on how far into the licensing year the application is
su bm itted.
R One city will not reduce a license fee below the equivalent of a six-month
fee.
R One city allows a business that goes out of business during the year to
obtain a pro-rated refund of the fee.
R One city specifies that no pro-rated fees will be allowed for partially utilized
licenses.
R One city allows a reduced fee if a business begins after the middle of the
licensing year, so long as the applicant was not involved in the same or a
similar business during the previous year.
17. Will the city issue temporary licenses?
R Several cities issue temporary licenses. These cities generally set a specific
limit to the number of days for the license. For example, one city issues
temporary vendor licenses for up to 45 days.
R One city allows temporary licenses to be extended for up to two additional
temporary periods.
R One city allows for "quarterly" business licenses.
R One city states that other than the fee and the duration, temporary business
licenses are subject to all other ordinance requirements.
18. Is a license transferable?
P Mayan owner transfer a business license?
P What if the business is sold?
P What if the business relocates?
10
R Several cities do not aliow business I icenses to be transferred.
R Some cities allow a business license to be transferred if a business is sold
during the licensed year. These cities generaliy require the new owner to
submit an application so that city records are updated, but aliow the current
license to be transferred.
R Some cities require a nominal fee (such as $1-2) to be charged for
processing a transfer application.
R Some cities require an individual to re-apply for a license if a business
relocates.
R Some cities require a new license fee if a business relocates or a license is
transferred.
R One city aliows a license to be transferred as long as the transfer does not
change the substance of the licensed business.
19. What if an individual has more than one business?
P What if a person owns/runs more than one type of business?
P What if a person owns multiple locations of the same business?
R Several cities require business owners who own more than one type of
business to pay the license fee for each type of business.
R Most cities charge separate license fees for each business location, even if it
is the "same" business.
R Most cities exempt business warehouses from needing a license if they relate
to a licensed business.
20. What about multiple businesses on the same property?
P If multiple businesses operate on the same property, are multiple licenses
required?
P What if the businesses are owned by the same person?
P What if the businesses are owned by different people?
R Most cities require businesses owned by different people operated on the
same property to obtain separate licenses.
11
,
R Some cities allow a person who owns several businesses that are similar and
located on the same property to obtain only one license.
R Some cities require a person to obtain a separate license for each business
on the property even if they are run or owned by the same person.
R One city considers one license to be sufficient if the same owner carries on
two businesses on the same premises if the license is issued for the primary
business.
21. What if a business if not located in the city?
P What if a business is not located within the city limits?
R A few cities charge higher fees for businesses located outside city limits.
R Several cities require businesses located outside the city limits to provide
information about the nu mber of employees who will work in the city as part
of the business license application.
R A few cities require that no more than the specified number of employees
who work for a business outside the city may work in the city. For example,
if the license application states that 5 employees will work in the city, then
no more than 5 empioyees may do business inside the city limits.
R One city charges businesses with no fixed operati ng site in the city will be
charged 150% of the prescribed license fee.
R One city considers businesses without a place of business in the city as a
"foreign" business and thus charges a different license fee.
R Additionally, charging a different fee to non-local businesses may raise issues
about Interstate Commerce challenges. See Legal Issues for additional
information.
22. How long does the city have to review a license application?
P Is the city required to make a decision about a license application within a
certain time period?
R Some cities require a decision regarding a license application to be issued
within a certain time period. For example, a decisiori must be made within
30 days of a completed appl ication being submitted.
23. For what reasons may an applic.ation be denied?
12
P Are there specific reasons for denial?
P Are there limitations to a person's ability to submit a license application?
R Cities have specified various reasons why an application may be denied.
These include (but are not limited to):
. Prior fraudulent activity by the applicant.
. If the business activity does not comply with city ordinances, state laws,
or federal laws.
. If the business activity would endanger property or publiC health and
safety.
. If an applicant has violated a law or an ordinance that presents
reasonable doubt in their ability to perform the business activity without
endangering property or public health and safety.
. If an applicant .fails to supply required information or submits false or
misleading information.
. If an applicant has submitted false or misleading information on a
previous license application.
. If the premises to be used by the business do not fully comply with all city
ordinances and requirements.
R A few cities prohibit an individual who has had a business iicense revoked,
suspended, or denied from applying for another business license for a specific
period of time.
R One city allows a business license to be denied if the business owner has a
criminal conviction relating to the subject matter for which the license
application is submitted.
R One city will not issue a license to a business if it conducted business in the
city without a license unless an additional fee is paid in addition to the current
fee.
R If a business fails to apply for and pay the fee for a renewal license by a
specific date, then a renewal license may be withheld until the license fee and
accrued interest are paid.
R One city disqualifies an individual from applying for a license for two years if a
license is denied or revoked two times within one year.
13
24. How is the licensed enforced?
R Most cities state that it is unlawful for any person to transact and carry on
any business, trade, profession, or occupation without a current valid license.
R Many cities allow city police or other officials to inspect business premises to
ensure that businesses are complying with city ordinances.
R One city requires that an official seeking to inspect business premises either
to obtain permission from the occupant or obtain a warrant from the court.
However, the official may inspect a premises without permission or a
warrant in emergency situations.
R Some cities require any business license holder to allow inspections at
reasonable ti mes as a requirement for obtaining a business iicense.
25. What penalties may be imposed for violating the city ordinance?
P May the city charge fines?
\
P May late fees be applied?
P Maya license be revoked?
P Requirements of the city if a license is revoked?
P Maya license be suspended?
P Requirements of t he city if a license is suspended?
R Many cities charge delinquency fees if a license is not renewed within a
certain time of the renewal date. For example, several cities charge
delinquency fees if the license is not renewed within 30 days of the renewal
date.
R A few cities cap the amount of delinquent charges. For example they may
be capped at 150% or 200% of the original fee.
R A couple of cities revoke a license if the owner is substantially delinquent in
paying the licensing fees. For example, one city allows a renewal license to
be denied or revoked if a licensee is over two months delinquent.
R Several cities allow the municipal court to issue fines to individuals who
violate the ordinance.
14
R A few cities allow an individuai to be imprisoned if he/she violates the
ordinance.
R Many cities allow a license to be revoked if a licensee violates a city
ordinance.
R These cities generally require the administrator to issue written notice to the
individual a certain period of time prior to the revocation, including
information regarding why the license is revoked.
R Several cities allow the city admin istrator to halt a revocation process if the
individual remedies the probiem leading to the revocation before the
specified date of revocation.
R Many cities allow an administrator to suspend a license if the business
presents an immediate danger to persons or property.
R Most cities that allow a license to be suspended make the suspension
effective immediateiy.
R One city allows the city to seek an injunction prohibiting an individual from
engaging in an unlicenced business.
26. What appeals are available to business owners?
P What grievances may a business owner appeal?
P Who oversees the appeal process?
P Is there a time limit for the business owner to bring an appeal>
P What information must be provided by a business owner in an appeal?
P What are the duties of the city regarding an appeal?
P Mayan individual request a rehearing?
R Business owners are generally allowed to appeal decisions regarding a license
application denial, a license revocation, a license suspension, or a particular
license fee.
R Some cities allow the administrator to make a decision regarding any
appeals that come in regarding a license denial, revocation or suspension.
R Many cities require the City Council to hear any appeals that are submitted
by aggrieved business owners.
15
R Some cities allow the administrator to hear an initiai appeal, but allow the
City Council to review this decision either on their own motion or by request
of the business owner.
R Some cities consider a right to appeal waived if an individual does not submit
an appeal within a certain number of days. For example, one city requires a
business owner to submit an appeal within 15 days of a license revocation.
R Many cities specify what information must be included in a written appeal
request. This includes (but is not limited to):
. Name & address of the appellant.
. Name and address of the business owner (if different from the appellant).
. Nature of the determination which is being appealed.
. A copy of the determination.
. Reasons why appellant feels the determination is incorrect.
. What the appellant feels the correct determination should be.
. Submission of an a ppeal fee.
R A few cities require appeal hearings to be public.
R Some cities consider appeal hearings to be quasi-judicial proceedings.
,
R One city requires the mayor to appoint a "board of appeal" consisting of 3
City Council members, and 3 people subject.to the city's license fee (2 of
which must be city residen ts).
R One city created an appeal board consisti n9 of a representative of the City
Auditor, a representative of the Bureau of Licenses, a nd three members of
the public.
R One city allows a rehearing before the City Commission for reconsideration
of a denial, revocation, or suspended license if substantial new evidence,
relevant to the prior refusal, becomes available.
R Many cities require that the individual making an appeal be given written
notice of the appeal hearing at least a certain number of days in advance
(for example one city requires notice at least 7 days in advance).
R A few cities specify the amount of time allowed for a decision regarding an
appeal to be issued.
16
27. What about licenses for specific types of business?
P What types of specific businesses must obtain a license?
P What is the purpose of these specific licenses?
P What fees are charged for these licenses?
R Businesses that frequently require specific iicenses include (but are not
limited to):
. Peddlers or solicitors.
. Carnivals or circuses.
. Taxicabs or limousines.
. Sidewalk cafes.
. Second hand dealers.
. Pawn brokers.
. Dances or dance halls.
. Amusement devices.
. Transient merchants or vendors.
. Massage parlors.
. Adult businesses.
. Entertainment clubs.
. Security services.
R Cities use specific business licenses for different purposes including to raise
revenue and to regulate.
R Fees for specific businesses are generally charged using a flat fee that the
city establishes for each type of business.
R Some licenses for specific businesses are based on the time period that they
will be in business. For example many cities charge carnivals or circuses a
fee based on their duration (such as 1 week or 1 month).
17
R One concern to consider when using a classification system is how the city
will determine if a business falls within a specific category. For example,
what if a business has multiple lines of business activity? Is Fred Meyer a
hardware store or a grocery store? Is AT&T a cable company or a telephone
company?
28. Additional concerns.
P What about violations that occurred under previous ordinances?
R Several cities include a "saving" clause in the ordinance to protect the city
from violations that occurred prior to the current ordinance. This clause is
intended so that licenses and fees assessed under previous ordinances are
still valid and that the current ordina nce does not preclude any action or
prosecution against any person who violated the previous ordinance prior to
the effective date of the new ordinance.
P What happens if a court finds that a portion of the ordinance is invalid?
R Some cities include a "severability" clause in the ordinance. This provides
that if one portion of the law is deemed invalid, then the remaining portions
are deemed to remain valid while that particular portion is dropped from the
ordinance.
P May the city charge additional fees?
R Many cities specify that general business license fees are not in lieu of ad
valorem taxes or license fees required by other city ordinances.
P What about placing conditions on a license approval?
R One city allows issuance of "conditional approval" licenses. If this is given,
the business owner must be given written notice of the reasons for the
conditional approval.
P Mayan agent be held I iable for violations of the business?
R Several cities deem that employees, agents, or representati ves of a person
with no regular place of business within the city, shall be personally
responsi ble for compl iance of principals and the business.
R One city holds the agents of a non-resident proprietor engaging in any
business for which a license is required liable for the payment of fees and for
penalties for failure to pay the fees or comply with the ordinance provisions
as if the agent were themselves proprietors.
18
P What if application information changes?
R One city requires a business owner to inform the city within 10 days of any
changes occurring to the information submitted in the application.
P What are the characteristics of the business license?
R A couple of cities include lists of the characteristics of the license. These
include (but are not limited to):
. The license is a purely personal privilege.
. The license is vaiid only for the term specified by the city code.
. The license is renewable according to the city code.
. The license is revocable or suspendable as provided by the city code.
. The license ceases upon death or dissolution of the licensee.
. The license does not constitute property.
. The license is not alienable or transferable.
. The license is not subject to attachment or execution.
. The license is not subject to descend or escheat by the laws of testate or
intestate devol ution.
P What type of company records must a business keep?
R Some cities require businesses to maintain business records of the number
of employees for a certain period of time. For example one city requires
records to be maintained for 3 years.
P Mayan individual obtain a duplicate license?
R A couple of cities allow a duplicate license to be issued if the original license is
lost or destroyed. These cities, however charge a $10 duplication fee.
P Is a city required to keep application information confidential?
R A couple of cities require information submitted as part of license to be kept
confidential except as otherwise required by law.
19
R These cities have determined tha t general statistics may be di sclosed (so
long as they do not provide identification of the licensee) and disclosure of
names and addresses of individuals to whom licenses are issues, and
presentation of evidence to the court in the prosecution of a city claim.
P How long before a business commences must an application be filed?
R Some cities require an individual to submit an application a specific period of
time prior to commencing doing business. For example, one city requires an
application to be submitted at least 30 days prior to conducting business in
the city if the business commences operation after the first day of the city's
licensing year.
20
Legal Challenges
1. What authority do cities have to regulate businesses?
R Municipalities have no inherent licensing power. The authority to license must
either be expressly granted by charter or statute, or exist by necessary
implication. Lent v. City of Portland, 42 Or. 488 (1903). But see Davidson
Baking Company v. Jenkins, 216 Or. 51 (1959) (general incorporation statute
construed as. granting authority to license a business).
R In City of ldanha v. Consumers Power, 8 Or. App. 551 (1972), the Oregon
Court of Appeals noted that a city's power is derived from the home rule
charter granted by the Oregon Constitution Article XI, section 2. The court said
that the grant under Article XI, section 2 is construed by the courts such that
cities have all the powers which the legislature can validly confer upon them.
Additionally, the court said that a city with proper charter authority may levy a
business or occupation tax based on its taxing power. Furthermore, the city
may impose a business or occupation license fee based on its police power
alone or in comb ination with its taxing power.
R Although the power to license may include the power to prohibit activities that
may be harmful to the public weifare, health, or safety, there are certain limits
on this power. In City of Portland v. Western Union Te/. Co., 75 Or. 37 (1915),
the Oregon Supreme Court held that the power to regulate does not authorize
an absolute prohibition of any legitimate business. As a means of enforcing "a
reasonable regulation, however, power may be exercised to require a license to
follow a particular occupation, along with an accompanying prohibition that, in
the failure to pay the stipulated fee and to procure the requisite evidence of
authority to conduct business, pursuit of that business will be unlawful.
R A frequent claim raised by businesses is that a city's license fee violates either
the Equal Protection or Due Process clauses of the constitutions. These claims
typically arise when cities charge different fees to different types of businesses.
In City of ldanha v. Consumers Power, 8 Or. App. 551 (1972), the court noted
that the constitutionality of an ordinance must be sustained against either Equal
Protection or Due Process claims unless it is impossible to discern any
substantial difference between the separate occupation classifications.
R An additional concern has arisen when a business is required to obtain a license
from both the city and the state. In A.G. Lyons v. City of Port/and, 115 Or. 533
(1925), the Oregon Supreme Court held that where a city has been granted by
general law or by legislative charter the authority to license a particular
business, that authority is not taken away by the fact that the state has also
imposed a licensing requirement for carrying ofl the same business. As long as
compliance with both the city ordinance and state statute does not create direct
conflict, a business may be subject to licensing requirements by both entities.
21
However, the city must remember that the legislature may create a general law
that will take away from the municipality the power to license a particular
business.
R In Covey Drive Yourself and Garage v. City of Portland, 157 Or. 117 (1937) the
Oregon Supreme Court held that so long as the enactment of the city ordinance
was in furtherance of the city's police powers and was not repugnant to the
state statute, then it was an ordinance that the city could pass.
2. How much may a city charge for a license?
R When reviewing the fees imposed under I icensing requirements, the courts have
looked to whether the license is imposed for revenue or regulatory purposes.
In setting the amount of the l,icense fee, it is important to determine whether
the municipality is exercising its taxing authority or its police power. In Ex Parte
Fine, 124 Or. 175 (1928), the Oregon Supreme Court held that the Oregon
City license fee of $120 per vehicle for "wholesale trade vehicles" exceeded the
cost of the slight amount of city regulation which the city proposed to give to
the vehicles. Therefore, the fee was void as a tax for other than revenue
purposes.
R The power to regul ate implies the power to impose a fee sufficient to cover the
cost of regulation. Fenwick v. City of Klamath Falls, 135 Or. 571 (1931).
Where a license fee is imposed under the police power, the fee charged may not
exceed the reasonable costs of granting the license and investigating,
inspecting, and other functions necessary for exercising proper police powers.
In In re Wan Yin, 22 F. 701 (D. Or. 1885), the district court of Oregon held that
the quarterly license fee of $5 was "far beyond" the city's special expenses
incurred in regulating laundries. However, in Hickey v. Ri/ey, 177 Or. 321
(1945), the Oregon Supreme Court held that an ordinance charging a traffic
meter fee of 5 cents and limiting parking time to one hour was a valid traffic
regulation, not a revenue tax. License fees imposed for regulatory purposes
may be reviewed to determine if the charges are so excessive as to be
prohibitory. Eugene Theatre v. City of Eugene, 194 Or. 603 (1952).
R In Safeway Stores v. City of Portland, 149 Or. 581 (1935), the Oregon
Supreme Court held that the amount of a license fee imposed for revenue
purposes may be based upon any fair and equitable measurement, such as the
amount of business done or sales made, so long as the rates are not arbitrary
or confiscatory.
3. Authority of a city to regulate businesses not located in the city.
An additional concern, relates to the authority of the city to require a business
without a permanent place of busi ness in the city to obta in a license under the
city's business license ordinance.
22
R In Wittenberg v. Mutton, 203 Or. 438 (1955), a city ordinance which charged a
flat license fee to businesses operating from a regular place of business and
charged an increased license fee to businesses not operating from a regular
place of business was challenged. In this case, the purpose of the city
ordinance was to raise revenue based on the privilege of doing busines s within
the city. The court held that the repeated act of "doing business" within the city
was sufficient to require a business to obtain a license even though the regular
place of business was located outside the city. The court held that it was
constitutional for the city to charge a different licensing rate to. the businesses
conducting business without a regular place of business.
R In City of Portland v. Cook, 170 Or. App. 245 (2000), a city ordinance requiring
all individuals conducting business within the city limits to obtain a license even if
their regular place of business was located outside the city limits, was once
again challenged. The Oregon Court of Appeals noted that the city ordinance
defined "doing business" as engaging in any activity in pursuit of property or
gain, including.. .rendering services. Therefore, the ordinance would apply to
Cook despite the fact that his office was located outside of the city since he
repeatedly entered the city to conduct aspects of his business.
R In City of Portland v. Cook, 170 Or. App. 245 (2000), the city ordinance was
also challenged as violating the Due Process clause of the constitution. The
court held that the ordinance satisfied both prongs of the due process test and
therefore did not violate Cook's due process rights. The ordinance satisfied the
test because (1) the ordinance reasonably limits the amount of taxable income
to the income that Cook earned within the city limits; and (2) there was
sufficient evidence that Cook had voluntarily chosen to conduct his busi.ness
duties within the city limits.
R In the case of Dennis v. Higgins, 498 U.S. 439 (1991), the US Supreme Court
held that state regulations on commerce exceeding the substantive limitations
under the Commerce Clause may give rise to 9 1983 claims. The Commerce
Clause does not merely allocate power between the fede ral and state
governments, but protects "rights, privileges, or immunities" within the meaning
of lj 1983. In this case, Nebraska assessed fees and taxes on motor vehicles
registered out-of-state, while imposing no comparable fees or taxes on
Nebraska registered vehicles. A motor carrier operated 0 hio registered trucks
and trailers in Nebraska and sued under 42 U.S.c. lj 1983, alleging that the
Nebraska taxes and fees were "retaliatory."
23
24
Administrative Concerns
1. How is the ordinance created?
R It is recommended that prior to creating a new business license ordinance, the
city should consult and work with individuals in the business community who will
specifically be affected by the new ordinance. It is hoped that by working along
side one another, the city will be able to avoid at least some of the potential
problems or complaints that are likely to happen when busines ses are suddenly
forced to pay additional fees in order to maintain their business in the city and
to perform their business duties in the city.
2. How many licenses are issued annually?
R One city (pop. 4,885) said that it issues approximately 200 licenses annually.
R One city (pop. 1,570) indicated that it issues approximately 75 licenses per
year.
R One city (pop. 8,715) issues between 400-550 business licenses per year. This
number also includes the temporary and seasonal licenses that are issued
annually to fruit/vegetable vendors.
R One city (pop. 1,300 issues approximately 49 business licenses per year.
R One city (pop. 20,085) issues between 1,700-2,000 business licenses annually.
R One city (pop. 14,300) issues approximately 700 licenses annually.
R One city (pop. 72,638) issues approximately 3000 business licenses annually.
R One city (pop. 13,170) issues approximately 845 licenses per year.
3. How much revenue is generated by the issuance of business licenses
annually?
R One city (pop. 4,785) indicated that it charges a flat $25.00 fee for each license
that is issued by the city. Therefore, the city raised approximately $5,000 per
year.
R One city (pop. 1,570) generates approximately $6,000 per year in revenue
from issuing business licenses. The cost of these licenses ranges from $50-200
per license.
R One city (pop. 8,715) indicated that it generates approximately $26,000 in
revenue from their business licenses annually. The revenue that is generated by
25
the licenses is put into the city general fund.
R One city (pop. 1,300) raises approximately $1,190 in revenue from business
licenses annually.
R One city (pop. 14,300) raises approximateiy $35,000 annually from business
licenses.
R One city (pop. 72,638) raised approximately $246,343 annually from business
licenses.
4. How much time does it take to process each business license?
R One city indicated that it takes approximately five hours to process a single
license. This includes time to initially process the application, create a packet of
information for the City Council to vote on for approval, and also have the
police department verify that license requirements are being met.
R Several cities indicated that it takes approximately V2 hour of administrative
time to issue each license.
R One city indicated that staff spends between 60'70 hours per year to process
all of the new and renewal licenses.
R One city indicated that it takes about 10-14 days to issue a license from the
time the compieted application is submitted. However, in some instances it
may take a little more time if an inspection needs to be made.
5. How is the ordinance enforced?
R A few cities have a Code Enforcement officer who is in charge of verifying that
businesses have valid licenses.
R In several cities, the city administrators are involved in enforcing the ordinance
and verifying that businesses have a valid license.
R One city has a Community Development Director in charge of verifying whether
or not businesses are properly licensed.
R One city indicated that they also act to enforce the ordinance when complaints
come in from citizens. These complaints typically concern individuals going
door-to-door selling items.
R One city indicated that either the City Recorder or the Code Enforcement officer
tries to get to each business in the city at least once duri ng the renewai period
in order to make certain that the business iicenses are current.
26
6. Problems with enforcement?
R One city indicated that it has some problems with businesses that are run out of
someone's home not obtaining a proper license. That city has insufficient staff
to have someone go door-to-door to verify whether or not there is a valid
business license.
R A general problem with enforcement is that many businesses are delinquent in
renewing their business licenses each year.
R One city indicated that there is insufficient staff to be able to verify that all
businesses are current in their licenses.
R One city indicated that it does not have time to actively enforce its ordinance,
therefore the city relies on complaints that are filed by citizens, at which time
the city will follow-up to determine whether or not the business is a legitimate
business and properly licensed.
R One problem that arises is that some businesses may frequentl y change names
which can make tracking the businesses difficult.
7. Changes they would like to see?
Some city officials pointed to changes that could enhance their city's business
license ordinance. Examples are:
R One city indicated that there is some concern about whether or not background
checks should be done on business owners prior to issuing a license.
R One city indicated that the current ordinance does not require the city to ensure
that contractors coming into the city are licensed or bonded by the state.
Although city officials try to check for this, the are not required to so the city is
considering making this a requirement for obtaining a license in the city.
R One city would like to see changes that will clarify the requirements of whether
or not certain individuals (such as contractors and home businesses) are
required to obtain a business license.
R One city indicated that changes should be made to the penalties that may be
imposed on individuals who fail to obtain a proper business license.
R One city would like to see changes made that will make enforcement of the
ordinance easier, however this is more a concern of obtaining additional man-
power to enforce the ordinance.
27
R One city indicated that it has some problems with businesses not wanting to
provide the city officials with all of the information that is requested on the
license application.
R One city indicated that the license fees should probably be change d since the
current .fees have been in place for about 10 years.
R One city indicated that it is considering changing the manner in which license
fees are determined. The city is considering basing the license fee on the
number of employees since the current flat fee requires that all businesses,
whether large or small, pay the same price.
8. Recent changes that have been made?
R One city indicated that it recently changed their ordinance so that fees are
based on number of employees rather than on type of business. The city finds
this much easier to enforce since many of the business cI assifications of the
prior ordinance were irrelevant to the city needs.
28
CITY OF
ASHLAND
Council Communication
Meeting Date:
Department:
Secondary Dept.:
Approval:
Study Session on 2011 Goal Setting Session
Decernber 6, 20 I 0 Prirnary Staff Contact: Martha Bennett
Administration E-Mail: bennettm@ashland.oLus
None l Secondary Contact: None
Martha Benne Y Estimated Time: 20 rninutes
Question:
What direction does the City Council have related to City Council Goal Setting for 201 I?
Staff Recommendation:
Staff recornrnends that Council provide direction on the questions raised below.
Background:
The City Council held its last goal setting session in January 2010. Council adopted the goals
developed in that session at the February 16,2010 Council meeting, and the goals were used to guide
the work planning and budget preparation for FY 20] 0-201 I. A copy of the goals adopted by Council
is attached to this merno.
Staff requests direction frorn the Council on the following items:
o Does Council prefer January 15,22 or 29 for the session?
o Does Council wish to conduct a Council Relations/ Council Teambuilding session as part of this
effort? Some of the issues that need to be worked out with new Councils related to how you are
going to work together and what your expectations are of staff. In past years, the Council has held
relatively short (2 hours or so) sessions on late Friday afternoon to discuss some of the process
related issues that arise with Councils.
o Do you wish to hold the goal setting session in Parks & Recreation Department offices in Lithia
Park again? If not, would you prefer the Siskiyou Room, the Council Chambers, or some other
facility in Ashland? Staff is checking, for example, with the Forensics Lab to see if their meeting"
room is available.
o Would you like to have a facilitator? If you want all members of the group to participate, a
facilitator can help. If the focus of the session is prirnarily updating the existing goals, it's possible
that the Mayor or I could facilitate the session. If you do want a facilitator, how do you want to.
select himlher?
o How would the Council like to invite Board, Comrnittee, and Commission input?
o How would the Council like to involve the City Recorder, City Attorney, or Department Directors?
o What are the next steps in planning, and who will be involved?
o What does the City Council think of the topics on the attached draft agenda as a starting point for
discussion on the substance of the retreat??
Attachments:
. Novernber 16,2010 Goal Report
Page I of2
..~.
...11
8:]5 a.m.
8:30 a.m.
8:45 a.m.
Noon
1:00 p.m.
3:30 p.m.
4:30 p.m.
CITY OF
ASHLAND
FIRST DRAFT AGENDA
20] I City Council Goal Setting Session
January 23,20] 0
Location TBD within City of Ashland
Get coffee, Get Ready
Check in with Values and Vision Staternents
Goal Setting Discussion
. Review progress on goals
. Review input and feedback from staff and City advisory groups
. What's missing?
. What needs to be deleted?
. Prioritize and Agree to list for Council adoption
Lunch Break
Continue Goal setting Discussion
Next Steps for Adoption
Adjourn
Page 2 of2
~~,
2010-2011 CITY COUNCIL GOALS
OVERVIEW
The City Council has set goals for the next 12 to 24 months to continue Ashland's history as a
community that focuses on sustaining itself and its people. To us, sustainability rneans using,
developing and protecting resources at a rate and in a manner that enables people to meet their
current needs and also provides that future generations can meet their own needs. The City of
Ashland has a responsibility towards sustainability in six primary areas:
o Economy
o Environment
o Social Equity
o Municipal Organization
o Public Facilities
o Partnerships
ECONOMY
Develop and implement a comprehensive economic development strategy for the purpose of:
o Diversifying the economic base of the community
o Supporting creation and growth of businesses that use and provide local and regional products
o Increasing the number of family-wage jobs in the community
o Levera in the stren ths of Ashland's tourism and re eat visitors
Develop an implemenling strategy for funding infrastructure and public facilities for economic
develo ment ro"ects.
Increase the c1arit . res onsiveness, and certaint of the develo ment rocess.
ENVIIWNMENT
Develop an integrated land use and transportation plan to increase the viability of transit, bicycles,
walking and other alternative modes of transportation; reduce per capita automobile vehicle miles
traveled; provide safe walking and bicycling routes to home, work, shopping and schools; implement
environmentall res onsible desi n standards, and minimize new automobile-related infrastructure.
Adopt an integrated Water Master Plan that addresses long-term water supply including c1imale
chan e issues, securit and redundanc ,watershed health, conservation and reuse, and stream health.
Implement specific capital projects and operational programs to ensure that City facilities and
o erations are a model of efficient use of water, ener , land, and other ke . resources.
Adopt land use codes, building codes, green building standards, and fee structures that creates strong
incentives for new development that is energy, water, and land efficient and supports a multi-modal
trans ortation s stem.
Develo a strate to use conservation and local renewable sources to meet Tier 2 ower demands.
Plan for low-water years including potentially 2010 by:
o Implementing a public information and technical assistance campaign that encourages summer
time conservation.
o Consider the options for a summer time surcharge to encourage efficient irrigation practices prior
to June 1, 2010.
Page 1 of2
Adopled February 16,2010
SOCIAL EQUITY
Complete the sale of a portion of the Clay Street Property 10 Parks and Recreation and decide whether
to develo or sell the remainin land.
Convene a discussion of stakeholders working on issues related to homelessness to develop a plan for:
o Replacing services previously provided by ICCA.
o Developing an emergency shelter for minors.
o Improving connections to services available in Jackson County to Ashland's homeless.
o Ensurin Jackson Count's 10 Year Plan addresses the s ecific issues faced in Ashland.
ORGANIZATION
Develop plan for fiscal stability, manage costs, prioritize services, and insure key revenue streams for
the City and Parks & Recreation.
Address issues the stability of the organization including employee recruitment and retention;
succession planning; and effective and increased use of citizen volunteers.
PUBLIC FACILITIES
Develo a Ian to r lace Fire Station #2.
Define a long term strategy for the Ashland Fiber Network that improves its financial viability,
rovides hi h ualit services to residents, and romotes health economic develo ment.
PARTNERSHIPS
Foster strong collaboration of the local community, City, State and federal leaders in efforts to
im rove the health of the Ashland walershed throu h reducin' fire hazards and reslorin forest health.
Advocate for the long-term viability of rail service to and through Ashland and encourage the use of
rail throu h land use, trans ortation, and economic develo menl Iannin .
Page20f2
Adopted February 16, 2010