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Home My WebLink AboutAGENDA REPORT 2008 0618 CC REG ITEM 09DITEM 9.,1).-- C"OF1916bROARK,CALIFt)R.T —, c City COuncii Meeting Of G ' /&- Apo F ACTION: n.Y _ -A v-.✓ W. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Barry K. Hogan, Deputy City Manager By: David Lasher, Senior Management Analyst DATE: June 12, 2008 (CC Meeting of 6/18/2008) SUBJECT: Consider Resolution for Potential Business Registration Fee Increase BACKGROUND /DISCUSSION This report was presented to the City Council for consideration at the June 4, 2008 meeting. At that time, the Council directed staff to seek the input of the Board of the Moorpark Chamber of Commerce. Staff met with the Board on June 11, 2008 and the Chamber of Commerce's Patrick Ellis forwarded the attached letter to the City. At the June 4, 2008 City Council meeting, the Council additionally asked staff to include the cost of similar business registration fees for Thousand Oaks and Simi Valley. This information is included in this report. Business Registration provides the City with information on businesses doing work in Moorpark. It is generally the first point of contact with the City and allows staff to review building, planning, engineering and other information with the prospective business. It provides the City with a list of those businesses which have hazardous materials on site, those businesses that would be subject to NPDES regulations and those businesses which would be subject to other special requirements such as adult businesses, massage and vendors. When a business entity registers with the City, the business also receives important information on how to operate a business within Moorpark, such as how to legally display signs and advertisements, special event processes and other provisions of the municipal code. The City of Moorpark's current Business Registration program imposes an annual thirty dollar ($30) fee on each business operating in the City regardless of the size or type of business. This fee has not been updated since 1989, a period of more than 19 years. 0120 Honorable City Council June 18, 2008 Page 2 Staff's analysis shows that the current cost of operating the Business Registration program substantially exceeds the revenue collected from the current annual fee. Currently, nearly three thousand business entities are registered in the City (2,822 as of April 24, 2008). Annually, an average of five hundred new businesses has been added to the roster of registered businesses. The issuance of a business registration involves both office and field work. Since 1989 the City has improved the business registration process through better use of the computer and software, improved registration certificates, renewals, document scanning, and field inspections. These improvements are not covered by the current thirty dollar ($30) fee for a new business registration or renewal. In addition to the normal process of issuing a Business Registration Certificate, field work is necessary to monitor that people doing business in Moorpark are complying with the City's regulations. For example, staff routinely and frequently identifies businesses and entities, including contractors, unregistered rental properties and home -based businesses, that are required to be registered as businesses, but which have not applied for or received a Business Registration Certificate. Instances such as these are investigated by the Division. The subsequent costs associated with investigating an unlicensed rental property or following up on a business that has not applied for or renewed a Business Registration Certificate in a timely fashion is not covered by the thirty dollar ($30) fee current charged for a certificate. New business applications employ more staff time than a renewal application given that new applications must proceed through the initial application processing, often incur staff time at the counter and have other processing costs. Comparison to Other Cities in the Region: Moorpark does not have a business license or business tax program. Business licensing and business tax programs in the region vary widely and include cities that charge a flat fee and others that charge a business tax based on annual gross receipts. In conjunction with this report, staff contacted several other Ventura County municipalities to compare business license programs. Staff determined that business licensing and business tax programs in the region vary widely and include cities that charge a flat fee and others that charge a business tax based on annual receipts. In a few nearby cities, the fee is set at or near one - hundred dollars. For example, Camarillo charges contractors one - hundred dollars, Ojai charges a flat one - hundred dollar fee and Fillmore's business license costs ninety -five dollars. Some cities, including Camarillo, Simi Valley and Thousand Oaks maintain more complex business tax programs that encompass numerous different tiers and tax levels. As shown on Table 1, on Page 3, the majority of neighboring cities in the region charge significant more for related business licensing than the City of Moorpark. These cities predominantly bear the same related costs for the processing and enforcement of business licensing. However, other cities such as Camarillo, Santa Paula and Simi Valley charge related fees ranging from processing fees to additional charges based on S: \Community Development \REPORTS TO CM \Business Reg\2008 \080618 BR CC Agenda Report final.doc �" Honorable City Council June 18, 2008 Page 3 gross receipts. For example, Ventura separately charges a $140.00 fee for an annual fire department inspection for any business in a commercial or industrial zone. Table 1. Regional Fee Comparison Municipality Base License Additional Costs Total Cost Camarillo' $100.00. - $100.00 Fillmore2 $95.00 $81.00 $176.00 Moorpark $30.00 - $30.00 Ojai $100.00 - $100.00 Santa Paula $25.00 $35.00 $60.00 Simi Valley4 $15- 225.00 - $15- $225.00 Thousand Oaks5 $20- 350.00 $80- 155.00 $100- 505.00 Ventura 6,7 $70.00 $140.00 $210.00 Camarillo has 20 associated tiers. Contractors for example are charged a flat $100.00 annual fee. 2 Fillmore's base charge is $95.00 plus $81.00 for a small business under 1,499 square feet, for example, among several other tiers. 3 Based on a business with gross receipts of $40,000 annually. 4 Simi Valley gross receipts rate starts at $15.00 and ranges to $225.00, although some businesses are charged a higher starting rate. For example, an auto dealer's permit starts at a minimum of $350.00. 5 Thousand Oaks operates under a gross receipts fee schedule. The lowest tier ($0415,000) is charged $20.00 annually plus a $55.00 processing fee ($12.00 for renewals) plus $25.00 for home -based businesses or $100.00 for an occupancy permit for brick - and -mortar establishments. The $350.00 base fee is for up to $1 M, although higher fees apply. 6 Ventura charges businesses a processing fee of $25.00 ($10.00 for renewals), but also charges a separate base tax of $45.00 plus additional fees based on gross receipts. Ventura additionally charges businesses in commercial and industrial zones a $140.00 fee for an annual fire department occupancy inspection. Related Services and New Costs: The City Council recently approved a new software program for business registrations. While this program improves the efficiency of the issuance of business registrations, there are associated personnel costs as well as annual costs for related software and licensing. In addition to the HdL business registration software, staff also utilizes the GIS mapping software, other databases and field inspections in furtherance of business registrations. An annual business inspection or visit also needs to be implemented to insure that each business is in compliance with City Codes. Annual visits will be carried out by Code Compliance Division staff with support (as needed or warranted) by the Building Services Division. Mobile -based businesses are a category that has traditionally had a low rate of compliance. These are businesses which are generally not located in the City but do business in Moorpark. Many of these mobile -based businesses perform identical work S: \Community Development \REPORTS TO CM \Business Reg\2008 \080618 BR CC Agenda Report final.doc �; 9: ti Honorable City Council June 18, 2008 Page 4 to products and services offered or managed from traditional 'brick- and - mortar' -based Moorpark businesses and should pay the same annual business registration fee. To greatly improve compliance of mobile -based businesses, staff has designed and is printing new, larger and more visible vehicle stickers to identity business vehicles (such as landscaping trucks, contractors, plumbers, electricians, mobile food vendors, and ice cream vendors) that are associated with entities conducting business within Moorpark. Business vehicles without the sticker will therefore be identified and then approached by staff to determine if their business is registered. We are also implementing stepped up field investigations to improve compliance for mobile -based businesses. In accordance with the Moorpark City Code, each business is required to display its Business Registration Certificate. To ensure that this Certificate is displayed and maintained properly, an acrylic certificate holder is distributed with the issuance of each new business registration and to existing business owners upon renewal. FISCAL IMPACT The City incurs costs associated with business registrations from the moment a phone call is answered or staff assists a business owner at the counter, completes an application or conducts a field investigation into an unregistered home -based business. As shown in Table 1 below, the true cost of processing and issuing a new Business Registration Certificate approaches ninety dollars. This figure also more closely matches the one - hundred dollars currently charged by several neighboring cities. The cost of renewing an existing Business Registration Certificate exceeds forty dollars. While this is less than the cost of a new business registration, it clearly exceeds the current fee. Table 1 - Business Registration Costs Component Annual Cost Associated with BR Processing Weighted Cost of BR Renewal' Weighted Cost of New BR Personnel $81,608.80 $22.53 $50.30 Software Support $24,121.28 $6.66 $14.87 Supplies and Additional Costs $39,324.60 $10.86 $24.24 Total $145,054.68 $40.05 $89.40 ' Per BR based on a weighted average, accommodating the lesser cost of a renewal as compared to a new BR, based on the number of BRs in circulation and the number of new BRs issued in 2007. Additionally, if the current $30 fee for a Business Registration Certificate had been indexed to inflation with a cost of living adjustment in the superseding nineteen years, a business registration would currently cost $51.66. S: \Community Development \REPORTS TO CM \Business Reg\2008 \080618 BR CC Agenda Report final.doc J:;, _L _L R'. Honorable City Council June 18, 2008 Page 5 A revenue estimate of $53,000.00 was established in the 2007 -08 City Budget for the Business Registration Program. Based upon Staff's research, it is estimated that the City will expend nearly one - hundred and fifty thousand dollars administering, processing and managing business registration - related concerns this fiscal year, a shortfall of $92,054. In 2007, the Community Development Department issued 649 Business Registration Certificates for new businesses, i.e. businesses that had not had a certificate previously. In 2006, 458 were issued. The number changes annually due to a number of reasons. There are also businesses which drop off the registry annually, just as new startups are added. Staff calculated the current costs associated with the Business Registration program based upon a number of fixed factors, such as the cost of software, supplies and personnel time. The variable is the number of new certificates. The more certificates that are in circulation results in a lower per unit cost of processing. Staff used the current number of certificates in our systems as of April 24, 2008 (that being the aforementioned 2,822) for this report and an average of 500 new certificates. We would recommend that Staff annual review the costs each year and present an update and fee adjustment for Council consideration. In light of the current economic situation, Staff would recommend that City Council consider blending the fee for new registrations and renewals with a single fee of sixty - five dollars ($65.00) with the new fee effective on January 1, 2009. The average of the cost of new registrations and renewals is equal to the proposed $65.00 blended fee. To ensure that the revenue for the program does not exceed costs, staff will present an annual update to the City Council beginning in March 2010 (to allow for a full calendar year under the proposed new fee). Any future fee adjustment upward or downward could then be implemented in July or January. STAFF RECOMMENDATION (Roll Call Vote) Adopt Resolution No. 2008- to increase Business Registration fees. ATTACHMENTS: 1. Business Registration Cost Analysis 2. Resolution 3. Chamber of Commerce Letter 4. June 4 Agenda Report n� & \Community Development \REPORTS TO CM \Business Reg\2008 \080618 BR CC Agenda Report final.doc Page 2 Business Registration Cost Analysis Account Expense Breakdown Adminiatmfinn 2007 -08 Budget 20% of Budget* 2200610000009190 Overhead Allocated - Services $20,815.00 $4,163.00 2200610000009200 Office Supplies $3,400.00 $680.00 2200610000009220 Publications & Subscriptions $500.00 $100.00 2200610000009221 Memberships & Dues $2,175.00 $435.00 2200610000009222 Education and Training $2,200.00 $440.00 2200610000009224 Mileage $4,100.00 $820.00 2200610000009231 Postage $4,000.00 $800.00 2200610000009232 Printing $1,500.00 $300.00 2200610000009250 Office Equipment Maintenance $150.00 $30.00 2200610000009298 Overhead Allocated - Supplies $52,980.00 $10,596.00 2200610000009503 Computer Equipment $10,000.00 $2,000.00 2200610000009598 Overhead Allocation $3,548.00 $709.60 Riiilriinn R Safaty E2200641000009221 Membership & Dues 1 $500.00 $100.00 2200641000009231 Postage $500.00 $100.00 Cnria Cmmnlianr_a 2200643000009020 Uniform Allowance $1,200.00 $240.00 2200643000009122 Legal Services- Non Retainer $15,000.00 $3,000.00 2200643000009221 Membershi & Dues $250.00 $50.00 2200643000009222 Education & Training $400.00 $80.00 2200643000009223 Conference & Meetings $550.00 $110.00 2200643000009232 Printing $100.00 $20.00 2200643000009254 Vehicle Maintenance $800.00 $160.00 2200643000009255 Gasoline 50% of Fuel $500.00 $250.00 2200643000009420 Telephone Service $300.00 $60.00 Total of Accounts Attributed to BR Expense $125,468.00 $25,243.60 *20% unless noted �a ZIA Percentage of Time Associated with BRs 25% N/P 25% 12% N/P 100% 30% 20% 100% 100% Business Registration Cost Analysis Existing BRs New (2007) Weighted at BRs Weighted All BRs minus 60% of Cost at 40% of Cost 2007 (2173) Per 2007 (649) Personnel: Rate Rate With Benefits Hours Per Week Annual Cost Annual Cost Associated with Existing BR Annual Cost Associated with New BR Annual Cost Per Unit, Existing BR Annual Cost Per Unit, New BR Administrative Assistant $39.82 10.00 $20,706.40 $12,423.84 $8,282.56 $5.72 $12.76 Consultant $46.20 8.00 $19,219.20 $11,531.52 $7,687.68 $5.31 $11.85 Code Compliance Technician II $42.88 10.00 $22,297.60 $13,378.56 $8,919.04 $6.16 $13.74 Senior Management Analyst $63.66 5.00 $16,551.60 $9,930.96 $6,620.64 $4.57 $10.20 Clerical $10.90 5.00 $2,834.00 $1,700.40 $1,133.60 $0.78 $1.75 .;PO -I,OUO.OV 40- Folaoa.LO .PJL,V'fJ•JL W -•vv W •�� Software: HdL FY 07 -08 - $16,171.28 $9,702.77 $6,468.511 $4.471 $9.97 CityGIS (30% of $26,500) - $7,950.00 $4,770.00 $3,180.00 $2.20 $4.90 .�L4, -1 LI.LO � IY,Y/ L./ � W�,vw.J � W�•�� + •�•�• Supplies, Support & Miscellaneous: Account Expenses see Page 2) $125,468.00 $25,243.60 $15,146.16 $10,097.44 $6.97 $15.56 3,500 Acrylic Holders $3.76 $13,160.00 $7,896.00 $5,264.00 $3.63 $8.11 BR Vehicle Stickers 500 Stickers $921.00 $552.60 $368.40 $0.251 $0.57 d�nw nw ip4u,JL`t. V V Total of Personnel, Software and Supplies: $145,054.68 WLJ,VV7.I V W .V,• rv.Vt W •v..... �� ••� - Per New Registrations: $40.05 Per Renewals: $89.40 f`az CC ATTACHMENT 2 RESOLUTION NO. 2008- 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. 1989 -552 WHEREAS, the City of Moorpark has identified a need to protect the health and welfare of the public by becoming more familiar with business operations and procedures in the community; and WHEREAS, the City Council of the City of Moorpark adopted Resolution No. 1989 -108 enabling the City to administer a business registration program; and WHEREAS, the fee schedule for these services must be revised from time to time to assure adequate recovery of all costs associated with the rendering of such services; and WHEREAS, on June 18, 2008, the City Council received and considered written evidence and oral testimony pertaining to a possible increase in said fees in accordance with Government Code Section 66016. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The fee for a new business registration certificate or renewal shall be set forth as sixty -five dollars ($65.00) per permit. SECTION 2. Payment of fees are due upon submittal of an application pursuant to City Ordinance No. 89 -108, Section 1, Chapter 5.06.050 (B) "Initial Application ". SECTION 3. Fees will be paid annually pursuant to City Ordinance No. 89 -108, Section 1, Chapter 5.06.060 "Annual Renewal ". SECTION 4. This Resolution shall become effective on January 1, 2009 following the public meeting held on June 18, 2008, implementing those changes in fees described herein immediately upon the effective date set forth herein. SECTION 5. Resolution No. 1989 -552, adopted the 3rd day of May 1989, is hereby rescinded upon the effective date of this Resolution. a d 17 Resolution No. 2008 - Page 2 SECTION 6. 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 18th day of June, 2008. Patrick Hunter, Mayor ATTEST: Maureen Benson, Assistant City Clerk r1loorpark Chamber of Commerce 18 High St Moorpark, CA 93021 Office 805 529 -0322 Fax: 805 -529 -5304 �awty, btoorna r]<<'hamber. coat Chairman Dale Parvin, Rotary Club of Moorpark Directors Ben Gilbert, Chair Elect Welcome To The Neighborhood Debi Aquino, Black Star Graphics Eric Arnaud, Troop Real Estate Wendy Dormer, Proline Mortgage Debbie Heaslip, TBM Event Services Gary Lowenberg, Rightway Financial Jo Ann Oliveras, Special Devices Inc. Doug Ridley, Quisenberry, Ridley & Shiffinan LLP Lynda Rummelhoff, State Farm Insurance Paul Walker, Empire Cabling Inc Trixy Weiss, Genesis Capital Mortgage Harry Wilson, Kavlico Staff Patrick Ellis, President/CEO Miranda Heaslip, Administrative Assistant CC ATTACHMENT 3 June 11, 2008 City Council Members Patrick Hunter, Mayor Janice Parvin, Mayor Pro Tem Roseann Mikos, Councilmember Keith Millhouse, Councilmember Mark Van Dam, Councilmember Honorable Mayor Hunter and Members of the City Council, We Appreciate the opportunity to provide feedback to you on the issue of the potential Business Registration Fee increase. Thank you for asking for our opinion and for sending Mr. Barry Hogan and Mr. David Lasher to answer the many questions and concerns of the Board of Directors. The Moorpark Chamber of Commerce Board of Directors is, on principle, against any increase in fee or tax to the business community. Mr. Hogan and Mr. Lasher explained the reasons for the proposed increase in Business Registration Fee and that the fee charged, by law can only cover the costs associated with the actual expenses to process such registration. After hearing their explanation, Moorpark Chamber of Commerce Board of Directors does not feel that the flat rate is the fairest proposal. If any increase is approved by the council, renewing businesses should not be charged the additional cost associated with a new business. The proposal of $40 for renewing businesses and $90 for new businesses is a more viable and fair way of assigning Business Registration expenses in the City of Moorpark. On behalf of the business community of Moorpark, thank you again for listening to our concerns and for seeking out our opinions. Best regards, Patrick Ellis President/CEO C ATTACHMENT 4 'h - -- - - -' nity t-ounr�El/J��ijeeting MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Barry K. Hogan, Deputy City Manager By: David Lasher, Senior Manag nt Analyst DATE: May 29, 2008 (CC Meeting of 61412008) SUBJECT: Consider Resolution for Potential Business Registration Fee Increase BACKGROUND/DISCUSSION Business Registration provides the City with information on businesses doing work in Moorpark. It is generally the first point of contact with the City and allows staff to review building, planning, engineering and other information with the prospective business. It provides the City with a list of those businesses which have hazardous materials on site, those businesses that would be subject to NPDES regulations and those businesses which would be subject to other special requirements such as adult businesses, massage and vendors. Businesses also receive information on how to operate a business within Moorpark, such as grand opening signs and special event processes. The City of Moorpark's current Business Registration program imposes an annual thirty dollar ($30) fee on each business operating in the City regardless of the size or type of business. This fee has not been updated since 1989, more than 19 years. Staff's analysis shows that the current cost of operating the Business Registration program substantially exceeds the revenue collected from the current annual fee. Currently, nearly three thousand business entities are registered in the City (2,822 as of April 24, 2008). Annually, an average of five hundred new businesses has been added to the roster of registered businesses. Issuance of a business registration involves both office and field work. Since 1989 the City has improved the business registration process through better use of the computer and software, improved registration certificates, renewals, document scanning, and field "130 Honorable City Council June 4, 2008 Page 2_ inspections. These improvements are not covered by the current thirty dollar ($30) fee for a new business registration or ,renewal. In addition to the normal proses work is necessary to monitor that the City's regulations. For examx and entities, including contracts businesses, that are required tc applied for or received a Business investigated by the Division. Th unlicensed rental property or foll renewed a Business Registration thirty dollar ($30) fee current chap of issuing a Business Registration Certificate, field >eople doing business in Moorpark are complying with le, staff routinely and frequently identifies businesses 's, unregistered rental properties and home -based be registered as businesses, but which have not Registration Certificate. Instances such as these are subsequent costs associated with investigating an )wing up on a business that has not applied for or Certificate in a timely fashion is not covered by the ed for a certificate. New business applications employ more staff time than a renewal application given that new applications must proceed the initial application processing, often incur staff time at the counter and have 1hrough other processing costs. Moorpark does not have a busin ss license /tax program. Just as a comparison, in a few nearby cities that have a bus ness license or business tax program, their minimum annual fee is set at or near one-h ndred dollars. Comparison to Other Cities in the Re ion: Business licensing and business tax programs in the region vary widely and include cities that charge a flat fee and others that charge a business tax based on annual receipts. In a few nearby cities, the fee is set at or near one - hundred dollars. For example, Camarillo charges contractors one - hundred dollars; Ojai charges a 'lat one - hundred dollar fee, while Fillmore's business license costs ninety -five dollars. amarillo maintains a complex business tax program that encompasses twenty different tiers and tax levels. Related Services and New Costs program for business registration issuance of business registratior annual costs for related softwai registration software, staff also ut field inspections in furtherance of The City Council recently approved a new software 3. While this program improves the efficiency of the s, there are associated personnel costs as well as e and licensing. In addition to the HdL business lizes the GIS mapping software, other databases and )usiness registrations. An annual business inspection or visit also needs to be implemented to insure that each business is in compliance with City Codes. Annual visits will be carried out by Code Compliance Division staff with 3upport (as needed or warranted) by the Building Services Division. Mobile -based businesses are a, category that has traditionally had a low rate of compliance. These are busines es which are generally not located in the City but do business in Moorpark. Many of t ese mobile -based businesses perform identical work 1.: 1 Honorable City Council June 4, 2008 Page 3 to products and services offered or managed from traditional 'brick- and - mortar' -based Moorpark businesses and should pay the same annual business registration fee. To greatly improve compliance of mobile -based businesses, staff has designed and is printing new, larger and more visible vehicle stickers to identity business vehicles (such as landscaping trucks, contractors, plumbers, electricians, mobile food vendors, and ice cream vendors) that are associated with entities conducting business within Moorpark. Business vehicles without the sticker will therefore be identified and then approached by staff to determine if their business is registered. We are also implementing stepped up field investigations to improve compliance for mobile -based businesses. In accordance with the Moorpark City Code, each business is required to display its Business Registration Certificate. To ensure that this Certificate is displayed and maintained properly, an acrylic certificate holder is distributed with the issuance of each new business registration and to existing business owners upon renewal. FISCAL IMPACT The City incurs costs associated with business registrations from the moment a phone call is answered or staff assists a business owner at the counter, completes an application or conducts a field investigation into an unregistered home -based business. As shown in Table 1 below, the true cost of processing and issuing a new Business Registration Certificate approaches ninety dollars. This figure also more closely matches the one - hundred dollars currently charged by several neighboring cities. The cost of renewing an existing Business Registration Certificate exceeds forty dollars. While this is less than the cost of a new business registration, it clearly exceeds the current fee. Table 1 '- Business Registration Costs Component Annual Cost Associated with BR Processing Weighted Cost of BR Renewal' Weighted Cost of New BR Personnel $81,608.80 $22.53 $50.30 Software Support $24,121.28 $6.66 $14.87 Supplies and Additional Costs $39,324.60 $10.86 $24.24 Total $145,054.68 $40.05 $89.40 ' Per BR based on a weighted average, accommodating the lesser cost of a renewal as compared to a new BR, based on the number of BRs in circulation and the number of new BRs issued in 2007. Additionally, if the current $30 fee for a Business Registration Certificate had been indexed to inflation with a cost of living adjustment in the superseding nineteen years, a business registration would currently cost $51.66. ,J' 132 Honorable City Council June 4, 2008 Page 4 A revenue estimate of $53,000.00 was established in the 2007 -08 City Budget for the Business Registration Program. Based upon Staff's research, it is estimated that the City will expend nearly two hundred thousand dollars administering, processing and managing business registration- related concerns this fiscal year, a shortfall of $92,054. In 2007, the Community Development Department issued 649 Business Registration Certificates for new businesses, i.e. businesses that had not had a certificate previously. In 2006, 458 were issued. The number changes annually due to a number of reasons. There are also businesses which drop off the registry annually, just as new startups are added. Staff calculated the current costs associated with the Business Registration program based upon a number of fixed factors, such as the cost of software, supplies and personnel. time: The variable is the number of new certificates. The more certificates that are in circulation results in a lower per unit cost of processing. Staff used the current number of certificates in our systems as of April 24, 2008 (that being the aforementioned 2,822) for this report and an average of 500 new certificates. We would recommend that Staff annual review the costs each year and present an update and fee adjustment for Council consideration. In light of the current economic situation, Staff would recommend that City Council consider blending the fee for new registrations and renewals with a single fee of sixty - five dollars ($65.00) with the new fee effective on January 1, 2009. The average of the cost of new registrations and renewals is equal to the proposed $65.00 blended fee. To ensure that the revenue for the program does not exceed costs, staff will present an annual update to the City Council beginning in March 2010 (to allow for a full calendar year under the proposed new fee). Any future fee adjustment upward or downward could then be implemented in July or January. Additionally, staff has scheduled "a meeting with Mr. Patrick Ellis, President and CEO of the Moorpark Chamber of Commerce to be held prior to the June 4 City Council meeting. A copy of this report has been provided to the Chamber as well STAFF RECOMMENDATION (Roll Call Vote) Adopt Resolution No. 2008- to increasing the Business Registration fees. ATTACHMENTS: 1. Business Registration Cost Analysis 2. Resolution Ji %J : Percentage of Time Associated with BRs 25% N/A 25% 12% N/A 100% 30% 20% 100% 100% Business Registration Cost Analysis Existing BRs New (2007) Weighted at BRs Weighted All BRs minus 60% of Cost at 40% of Cost 2007 (2173) Per 2007 (649) r� Personnel: Rate Rate With Benefits Hours Per Week Annual Cost Annual Cost Associated with Existing BR Annual Cost Associated with New BR Annual Cost Per Unit, Existing BR Annual Cost Per Unit, New BR Administrative Assistant $39.82 10.00 $20,706.40 $12,423.84 $8,282.56 $5.72 $12.76 Consultant $46.20 8.00 $19,219.20 $11,531.52 $7,687.68 $5.31 $11.85 Code Compliance Technician II $42.88 10.00 $22,297.60 $13,378.56 $8,919.04 $6.16 $13.74 Senior Management Analyst $63.66 5.00 $16,551.60 $9,930.96 $6,620.64 $4.57 $10.20 Clerical $10.90 5.00 $2,834.00 $1,700.40 $1,133.60 $0.78 $1.75 $81,608.80 $48,965.28 $32,643.52 $22.53 $5e.30 Software: HdL (FY 07 -08) - $16,171,281 $9,702.771 $6,468.51 $4.471 $9.97 CityGIS (30% of $26,500) 1 - 1 $7,950.001 $4,770.001 $3,180.001 $2.201 $4.90 $24,121.28 $14,472.77 $9,648.51 $6.66 $1,x.67 Supplies, Support & Miscellaneous: Account Expenses (see Page 2) $125,468.00 $25,243.60 $15,146.16 $10,097.44 $6.97 $15.56 3,500 Acrylic Holders $3.76 $13,160.00 $7,896.00 $5,264.00 $3.63' $8.11 BR Vehicle Stickers 500 Stickers $921.00 $552.60 $368.40 $0.25 $0.57 $39,324.6U $Z3,594./b $95,1"19.84 Total of Personnel, Software and Supplies: $145,054.68 Per New Registrations: Per Renewals: $9U.8b $Z4.Z4 $40.05 $8'.40