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HomeMy WebLinkAbout05/19/2021 5ASUBJECT: Ordinance No. 5421 amending the Bremerton Municipal Code relating to General Business Licenses to support transition to WA State Business License Services online applications AGENDA BILL CITY OF BREMERTON CITY COUNCIL Study Session Date: COUNCIL MEETING Date: Department: Presenter: Phone: 12, 2021 19. 2021 DCD Andrea L. Spencer (360) 473-5283 SUMMARY: Starting in 2018 State law was changed by the Washington State Legislature with the passage of EHB 2005; this law requires that the cities with business licensing programs contract with either FileLocal or Washington State Business License Services (State BLS) for online license applications. In order to meet the requirements of State law the City entered into a contract with FileLocal in April 2018, and that contract ends on September 30, 2021. The City will not be renewing with FileLocal because we have found that this contract has not met our online licensing needs. In addition, prior to the execution of this contract, FileLocal shared with the City that it was anticipated that our annual contract costs would go down over time as other cities joined with their agency. Although other cities have joined FileLocal, our annual contract cost has remained at approximately $40,000, All recent indications from FileLocal about future annual fees appear to be remaining the same and not indicative of any large reductions. In order to continue to meet the requirements of State Law, Bremerton has contracted with State BLS for online business license applications, and the State BLS system will be live for Bremerton Businesses on July 15, 2021. In mid -May the City will be sending correspondence to all of our license holders to make them aware of the switch from FileLocal to State BLS and offer assistance for the transition. The State BLS will be responsible for the acceptance of all the City's online business license applications, and they will transmit all license fees that they collect back to the City. The State will retain license fines and penalties, which are usually levied for such items as late payments. The City's usual annual fines and penalties are estimated to be between $10,000 to $15,000. By changing from FileLocal to State BLS we anticipate an annual cost savings of $25,000 to $30,000. The proposed ordinance attached to this agenda bill makes modifications to the City's licensing code to make the transition to the State BLS and other minor housekeeping modifications for code clarity. ATTACHMENTS: 1) Ordinance No. 5421 2) Notice to Business Owners FISCAL IMPACTS (Include Budgeted Amount): BMC changes have no fiscal impacts, however by switching from FileLocal to State BLS the City saves $25,000 to $30,000 annually. STUDY SESSION AGENDA: 0 Limited Presentation El Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑x General Business ❑ Public Hearing RECOMMENDED MOTION: Move to pass Ordinance No. 5421 to make modifications to the Bremerton Municipal Code provisions for general business licenses to support Washington State Business License Service (State BLS) online applications and other minor housekeeping changes for code clarity. COUNCIL ACTION: 4rApprove L] Deny ❑Table El Continue ❑ No Action