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HomeMy WebLinkAboutItem 4.9 - 3279 DMC 4.04 Business License Amendments (2) Page 1 of 3 STAFF REPORT CITY COUNCIL DATE: July 21, 2020 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: Introduction of an Ordinance Approving Amendments to the Dublin Municipal Code Amending Chapter 4.04 (Business Regulations) Relating to Sworn Statement Requirements Prepared by: John Stefanski, Assistant to the City Manager EXECUTIVE SUMMARY: The City Council will consider an amendment to Dublin Municipal Code (DMC) Chapter 4.04 (Business Registration) to remove certain requirements to streamline the business license registration process. Specifically, the proposed amendments remove references that require Sworn Statements which must be made in front of an authorized officer or through an approved electronic signature software service. This amendment will facilitate the transition to a paperless business license application. STAFF RECOMMENDATION: Waive the reading and INTRODUCE the Ordinance Approving Amendments to the Dublin Municipal Code Amending Chapter 4.04 (Business Regulations) Relating to Sworn Statement Requirements. FINANCIAL IMPACT: None. DESCRIPTION: Current Policy The purpose of DMC 4.04 (Business Registration) is to register businesses, trades, occupations, and professions in the City solely for the purpose of regulation. Furthermore, this business registration process provides the City the opportunity to cull relevant data about the Dublin business community. Specifically, the Business Registration program provides the City with a business’s contact information, owner information, location(s), total number of employees, and other information to ensure conformance with zoning and other regulations. Persons conducting business in Dublin are required to register their business with the City. DMC 4.04.050 states “it is unlawful for any person to transact, carry on and/or Page 2 of 3 engage in any business, trade, profession, calling or occupation in the city without first having procured a license from the city to do so and paying the prescribed business registration fee, and without complying with any and all applicable provisions of this chapter.” DMC 4.04.220 requires a person making an application for a Business License to furnish to the City a “sworn statement” upon a city produced form that sets forth, at a minimum, the following information: 1. The exact nature or kind of business for which a license is requested. 2. The place where such business is to be carried on, and if the same is not to be carried on at any permanent place of business, the places of residence of the owners of same. 3. In the event that application is made for issuance of a license to a person doing business under a fictitious name, the application shall set forth the names and places of business of those owning the business. 4. In the event that the application is made for the issuance of a license to a corporation or a partnership, the application shall set forth the names and places of business of the officers or partners thereof. 5. For established and operating business: the daily average number of employees employed in furtherance of the business being licensed during the ninety (90) day period preceding the date of application. For new businesses: the daily average number of employees anticipated to be employed to conduct the business during the ninety (90) day period following the date of the application. 6. In the event the application is made for issuance of a master license to a festival organizer, the application shall set forth the names and addresses of all purveyors, and the goods and/or food to be purveyed. 7. Any further information which the Collector may require to enable him or her to issue the license. Current regulations require applicants for business licenses to provide a sworn statement on each business license application. A “Sworn Statement,” as DMC 4.04.020 defines, is “an affidavit sworn to before a person authorized to take oaths, or a declaration or certificate under penalty of perjury.” This is above what is required for applications for more substantial applications for building and planning permits. There is no legal requirement, outside of what is provided in DMC 4.04, for business license applications to have a sworn statement. The City’s application process currently allows for business owners to submit physical applications for a business license in person or via mail. Under the current regulations and State law, the City cannot accept a digital or emailed application unless the “sworn statement” portion of the application is signed utilizing a State-approved software which facilitates a security certificate with the applicant’s signature. Due to the COVID-19 Pandemic, City offices have not been open to the public and therefore have not been able to accept in-person business license applications. While the City can receive applications via mail, relying on a physical process which involves Page 3 of 3 multiple persons touching the same item is not appropriate nor in the best interest of Staff during this pandemic. In consideration of this, the Community Development Department is transitioning the Business License application process to the State - approved DocuSign platform, which can facilitate electronic application submittals. Proposed Amendments Staff recommends eliminating the requirement for a “sworn statement” on Business License applications. The City does not require sworn statements for building or planning applications and therefore removing the more stringent requirement of a sworn statement would achieve parity amongst other permit applications. Furthermore, by eliminating the Sworn Statement requirements, the City will have greater flexibility to transition the Business License application process to an entirely electronic, paperless format in the future. Currently, when processing Business License applications Staff must manually input all information into the City’s Enterprise Resource Planning (ERP) system. Staff desires to streamline this process into one system where businesses can submit their applications electronically for processing and Staff can review and process without the need to manually upload or input applicant data. This process improvement will save Staff time and will provide an opportunity for businesses to easily apply for business licenses. As the City is currently working on identifying and implementing a new ERP system, Staff is evaluating potential systems for this functionality. Next Steps The proposed ordinance will take effect in thirty (30) days. At that time, Staff will adjust the Business License application accordingly. Staff will continue to process business applications via DocuSign and will transition to a single processing system once the new ERP system is implemented. STRATEGIC PLAN INITIATIVE: Strategy 4: Become a 24/7 City Hall to Enhance Resident and Business Engagement. Objective A: Reduce/eliminate the need for paper transactions where feasible. Objective B: Provide more opportunities for residents to complete transactions with the City online with appropriate security measures. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Ordinance Approving Amendments to the Dublin Municipal Code Amending Chapter 4.04 (Business Regulations) Relating to Sworn Statement Requirements ORDINANCE NO. XX - 20 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * APPROVING AMENDMENTS TO THE DUBLIN MUNICIPAL CODE AMENDING CHAPTER 4.04 (BUSINESS REGULATIONS) RELATING TO SWORN STATEMENT REQUIREMENTS WHEREAS, the City Council of the City of Dublin (“City”) finds that businesses are an integral part of the Dublin community via the jobs they provide for residents and the essential services and amenities supported by the revenues they generate; and WHEREAS, Dublin Municipal Code (“DMC”) Chapter 4.04 entitled “Business Registration” requires all persons conducting business within the City to register the business with the City; and WHEREAS, DMC 4.04.050 prohibits the transaction, carrying on, and/or engagement of any business, trade, profession, calling or occupation in the City without, among other things, procuring a license from the City and paying the prescribed business registration fee; and WHEREAS, as currently written, DMC Chapter 4.04 further requires applications for an initial business license or business license renewal include an applicant’s “sworn statement,” which may be facilitated only through a physical signature or through an California Secretary of State approved electronic signature software; and WHEREAS, the City desires to remove the requirement of a sworn statement from the City’s business registration procedures to achieve parity with the procedures for building and/or planning applications, which do not require a sworn statement; and WHEREAS, eliminating such sworn statement requirement will allow greater flexibility to transition the business registration and license application process to an paperless format where businesses can submit applications electronically for processing and staff can review and process without the need to manually upload or enter in applicant data ; and WHEREAS, the proposed amendments to DMC Chapter 4.04 described herein support the City Council’s Two-Year Strategic Plan, which directs staff to transition the City to a 24/7 City Hall to enhance resident and business engagement, by reducing or eliminating the need for paper transactions where feasible and providing more opportunities for residents to complete transactions with the City online with appropriate security measures ; and WHEREAS, the California Constitution, Article XI, Section 7 provides cities with the authority to enact ordinances to protect the health, safety, and general welfare of their citizens, and business regulations are a permissible exercise of this authority; and WHEREAS, a Staff Report was submitted to the City Council recommending approval of the proposed Dublin Municipal Code Amendment; and WHEREAS, the City Council did hear and consider all said reports, recommendations and testimony herein above set forth and used its independent judgment to evaluate the proposed Dublin Municipal Code Amendment. NOW, THEREFORE, the City Council of the City of Dublin does hereby ordain as follows: Section 1. Recitals. The recitals above are true and correct and incorporated herein by reference. Section 2. Section 4.04.020 entitled “Definitions” is hereby amended as follows (deletions in strikethrough): For the purposes of this chapter, the following definitions shall apply: “Business” means and includes professions, trades and occupations, and all and every kind of calling, whether or not carried on for profit. “City” means the city of Dublin, a municipal corporation of the state of California. “Collector” means the Finance Director or any other person the City Manager may designate to administer the business registration program. “Engaging in business” means commencing, conducting or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. “Person” and “persons” means and includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, trusts, societies and individuals acting and carrying on any business in the city, other than as an employee. “Person” and “persons” shall also include the operator of a festival, fair, farmers’ market or similar event for which one person (the “organizer”) obtains required permits and licenses and which includes other persons who sell or offer to sell goods and/or food at the event (“purveyors”) through contract with the organizer or otherwise. “Sworn statement” means an affidavit sworn to before a person authorized to take oaths, or a declaration or certificate under penalty of perjury. Section 3. Section 4.04.060 entitled “Exemptions” is hereby amended as follows (additions in underlined italics, deletions in strikethrough): Any person claiming an exemption to Sections 4.04.070 through 4.04.180 shall file a sworn statement with submit to the Collector, upon a form provided by the Collector, a request for such exemption and statement of the facts upon which exemption is claimed, and in the absence of such request and statement substantiating the claim, such person shall be liable for the payment of the fees imposed by this chapter. Section 4. Section 4.04.190 entitled “Evidence of doing business” is hereby amended as follows (additions in underlined italics, deletions in strikethrough): When any person makes use of signs, circular, cards, telephone books or newspapers, and advertises, holds out or represents that he or she is in business in the city, or when any person holds an active license or permit issued by a governmental agency indicating that he or she is in business in the city, and such person fails to deny by an affidavit sworn to before a person authorized to take oaths or a declaration or certificate under penalty of perjury a sworn statement given to the Collector that he or she is conducting a business in the city, after being requested to do so by the Collector, then these facts shall be considered prima facie evidence that he or she is conducting a business in the city. Section 5. Section 4.04.220 entitled “Application—First License” is hereby amended as follows (additions in underlined italics, deletions in strikethrough): A. Upon a person making application for the first license to be issued under this chapter, or for a newly established business, such person shall furnish to the Collector a sworn statement, upon a form provided by the Collector, the following information: 1. The exact nature or kind of business for which a license is requested; 2. The place where such business is to be carried on, and if the same is not to be carried on at any permanent place of business, the places of residence of the owners of same; 3. In the event that application is made for issuance of a license to a person doing business under a fictitious name, the application shall set forth the names and places of business of those owning the business; 4. In the event that the application is made for the issuance of a license to a corporation or a partnership, the application shall set forth the names and places of business of the officers or partners thereof; 5. For established and operating business: the daily average number of employees employed in furtherance of the business being licensed during the ninety (90) day period preceding the date of application. For new businesses: the daily average number of employees anticipated to be employed to conduct the business during the ninety (90) day period following the date of the application; 6. In the event the application is made for issuance of a master license to a festival organizer, the application shall set forth the names and addresses of all purveyors, and the goods and/or food to be purveyed. 7. Any further information which the Collector may require to enable him or her to issue the license. B. The Collector shall not issue to any such person another license for the same or any other business until such person has furnished to him or her the sworn statement information required by subdivision (A) of this section and paid the business registration fee as herein required. Section 6. Section 4.04.230 entitled “Application—Renewal License” is hereby amended as follows (additions in underlined italics, deletions in strikethrough): The applicant for the renewal of a license shall submit to the Collector, on or before October 1st of each year the correct amount of fee and a sworn statement, upon a form provided by the Collector, setting forth the information described in Section 4.04.220 of this chapter. Section 7. Section 4.04.310 entitled “Collector’s powers—Filing deadline” is hereby amended as follows (additions in underlined italics, deletions in strikethrough): A. In addition to all other power conferred upon him, the Collector shall have the power, for good cause shown, to extend the time for filing any required sworn statement or application for a period not exceeding thirty (30) days, and in such case to waive any penalty that would otherwise have accrued. B. For the purposes of regulation under this chapter, the Collector shall also have the power to determine whether or not a person is engaged in business in the city when such question arises as a result of an occasional or a single isolated transaction during the course of one (1) or more calendar years. Section 8. Severability. The provisions of this Ordinance are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections , words or parts thereof of the ordinance or their applicability to other persons or circumstances. Section 9. Effective Date. This Ordinance shall take effect and be in force thirty (30) days from and after the date of its final adoption. Section 10. Posting. The City Clerk of the City of Dublin shall cause this Ordinance to be published or posted in the manner required by law. PASSED, APPROVED AND ADOPTED this 18th day of August, 2020. AYES: NOES: ABSENT: ABSTAIN: _____________________________ Mayor ATTEST: ___________________________________ City Clerk 3538017.1