HomeMy WebLinkAboutAGENDA REPORT 2011 0202 CC REG ITEM 09BITEM 9.13.
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MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: David A. Bobardt, Community Development Dire r
Prepared by: David Lasher, Management Analyst
DATE: January 11, 2011 (CC Meeting of 2/2/2011)
SUBJECT: Consideration a Resolution Adopting a Revised Fee Schedule for
Services Rendered Pursuant to the Moorpark Municipal Code
Relating to Business Registration Fees and Rescinding Resolution
No. 2008 -2724
BACKGROUND
Chapter 5.08.010 of the Moorpark Municipal Code (MMC) requires that any person
engaged in any business within the city must obtain a valid Business Registration
Permit. The code requires that a Business Registration Permit application must be
accompanied by a filing fee established by City Council Resolution. California
Government Code Section 66014 provides for cities to charge fees to recover the costs
associated with permit processing services. Policy 5.7 of the City Council Policies
Resolution calls for the annual review of fee resolutions by each department as part of
the budget process to determine if an adjustment is appropriate. Current filing fees,
established by Resolution No. 2008 -2724, include a $90.00 fee for an initial business
registration permit and a $40.00 fee for annual renewals, applicable to every business
entity in the city regardless of the size or type of business.
DISCUSSION
Currently, over 3,600 businesses are registered in the city. Annually, approximately 700
businesses are added to the roster of registered businesses (and many others drop off
the roster having completed one -time projects in Moorpark and decline to renew).
Each new business registered currently pays a $90.00 fee for an initial application.
Each business renewing this annual permit currently pays a $40.00 fee.
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Honorable City Council
February 2, 2011
Page 2
The city incurs direct costs associated with managing and processing business
registrations. These charges include personnel and equipment costs, charges
associated with data entry, hardware use, software licensing, document scanning,
issuance of certificates and other correspondence and similar related costs. In addition,
staff spends time in the field to identify businesses and entities, (including mobile
businesses, such as landscapers and contractors) that are required to be registered as
businesses, but have not applied or received a business registration permit.
Staff has estimated the costs of processing business registration applications and
renewals in 2010 at current billing rates. The current estimated cost of processing and
issuing a new business registration permit is $94.20 as shown in the table below. The
cost associated with renewing an existing business registration permit is $33.46. The
total estimated cost of processing business registrations in 2010 was $163,935.00,
whereas the total revenue was $180,210.00.
Business Registration Costs
Component
Total Annual Cost of
Business Registration
Processing
Per Unit Cost of New
Business Registration
Per Unit Cost of
Business Registration
Renewal
Personnel
$153,35500
$91.16
$3058
Software Support
$10,580.00
$304
$2.88
Total
$163,935.00
$94.20
$33.46
As a cost recovery fee, the business registration fees charged to businesses must
reflect the cost of managing the business registration process. As such, staff would
recommend that the fee charged for a new business registration certificate remain
unchanged and that the fee for business registration renewals be reduced to $35.00 to
take effect immediately.
FISCAL IMPACT
The business registration fee would continue to offset the staff costs and other costs
associated with business registrations.
STAFF RECOMMENDATION: (ROLL CALL VOTE)
Adopt Resolution No. 2011-
Attachments:
1. Cost Analysis
2. Resolution No. 2011-
.:,
Business Reaistration Cost Analvsis
Position
Annual
Hours
Billing Rate
Total Cost
%
Renewal
Annual Cost
Associated with BR
Renewals (based on
2937 renewals )
%
New BR
Annual Cost
Associated with
New BR (based on
697 new BRs
Administrative Assistant
652
$7500
$48,900.00
75%
$36,675.00
25%
$12,225.00
Clerical Aide
520
$40.00
$20,800.00
75%
$15,600.00
25%
$5,200.00
Code Compliance Technician II
429
$8500
$36,465.00
90%
$32,818.50
10%
$3,646.50
Management Analyst
429
$11000
$47,190.00
10%
$4,719.00
90%
$42,471.00
$153,355.00
$89,812.50
$63,542.50
Annual o
Software Cost Annual Cost Renewal Renewal Cost New BR New Cost
HdL BR Software 100%
$3,500001
$3,500.001
80%1
$2,800.001
20%
$700.00
CityGIS (30% of Total)
1 $23,600 00
$7,080.001
80%1
$5,664.001
20%1
$1,416.00
$10,580.00
Total Annual Cost of Personnel & Software $163,935.00
2010 Cost of Administering New Business Registrations:
2010 Cost of Administering Renewal Registrations
2010 Cost of Administering New Business Registrations Per Certificate
2010 Cost of Administering Renewal Registrations Per Certificate
CC ATTACHMENT 1
P
$8,464.00
$2,11600
$65,658.50
$98,276.50
$163,935.00
$94.20
$33.46
RESOLUTION NO. 2011-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, ADOPTING A REVISED FEE
SCHEDULE FOR SERVICES RENDERED PURSUANT TO
THE MOORPARK MUNICIPAL CODE RELATING TO
BUSINESS REGISTRATION FEES AND RESCINDING
RESOLUTION NO. 2008 -2724
WHEREAS, Chapter 5.08 of the Moorpark Municipal Code requires annual
business registration permits for any person engaged in any business within the city;
and
WHEREAS, Resolution No. 2008 -2724 has provided for the recovery of costs
associated with administering the business registration permit program; and
WHEREAS, a review of the costs associated with the processing of business
registrations and annual renewals calls for the fees to be adjusted at this time to reflect
current actual costs of providing such services.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The fee for a new business registration permit is $90.00.
SECTION 2. The fee for a business registration permit annual renewal is
$35.00.
SECTION 3. This Resolution shall become effective immediately.
SECTION 4. Resolution No. 2008 -2724 is hereby rescinded upon the effective
date of this Resolution.
SECTION 5. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be file in the book of original resolutions.
PASSED AND ADOPTED this 2nd day of February, 2011.
Janice S. Parvin, Mayor
ATTEST:
Maureen Benson, City Clerk
CC ATTACHMENT 2
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