Minutes - Council - 01/09/1996 - Laserfiche WebLink

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notice that if the City's Transportation Impact Fee is implemented April 15, 1996, this plat will be subject to those fees. Motion by Councilmember Be'then and seconded by Councilmember Peterson to adopt Resolution//96-01-107 granting final plat approval to Northfork Itasca Shores Addition contingent upon compliance with City Staff Review Letter dated December 5, 1995, and the Developer entering into a development agreement with the City. Motion carried. Voting Yes: Councilmembers Beahen, Peterson, Beyer and Zimmerman. Voting No: None. Abstain:. Mayor Hardin. Case #5: Review Motor. Vehicles Sales/Repair License Fees Finance Officer Hart stated that when Council approved the 1996 Schedule of Rates, Fees and Charges, it inclUded an increase in the license fee for Motor Vehicle Sales/Repairs from $100 per year to $500 per year. There was no separate discussion by the Finance Committee or the City Council regarding this specific increase for 1996. Upon receiving the license renewals for 1996, several business owners called regarding the rate increase. A couple of them approached the City Council during Citizen Input on December 12, 1995. At that point, Council recommended it be addressed ~ as a case at this meeting. Ms. Hart summarized the information she included with the case pertaining to the charges by other cities and explained that rate changes are derived from several places. She also explained that more st'iff time is utilized and more dollars are spent with regard to the motor vehicle sales/repair businesses. This particular license fee will be further reviewed by the Administrative Services Manager and staff is recommending cutting the fee from $500 to $250. Councilmembers Beyer and Zimmerman felt that was still too high and suggested going back to $100. Tom Kurak, motor vehicle sales business owner, stated that it appears the City does take into consideration what other cities are doing, so he, too, checked with neighboring communities. They also held a meeting with car dealers on Highway #10. They expressed support of a yearly review of the license but felt the fee should be about $35 a year. He added that they would like to participate in the debate of setting the fees. He reported that these dealerships are licensed by the state at a Cost of $150 and they (the State) keep a f'de on the business. They have inspectors who come to our place of business, plus we (the dealers) are required to have a $25,000 bond per transaction. City Administrator Schroeder stated that we have a number of business licenses by category - our concern is somewhat similar due to concern for the amount of value received for fee generated. We have experienced increased staff time as a result of some businesses in this category. As a result of this concern, we feel we need to go through the entire business licensing area generally. It will result in somewhat of an audit in what's received for the fee with regard to staff time, etc. All these services that could be provided to all of the business owners currently are not being provided. The reason for approval of the fee originated in 1995, because of staff time increases and our attempt to cover expenses outside of the general tax levy. At the same time, however, we understand the concerns of those who feel the fees ought to be reduced. Mayor Hardin stated that the intent is to look at all business licensing fees to see if they are necessary, if they are adequate, etc. Councilmember Zimmerman stated that this review will take time. City Council/January 9, 1996 Page 11 of 20