HomeMy WebLinkAboutStaff Report 105-07City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTENTION:FINANCE COMMITTEE
FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
MARCH20, 2007 CMR: 105:07
RECOMMENDATION TO IMPLEMENT BUSINESS REGISTRY
PROGRAM AND FEE
RECOMMENDATION
Staff requests that the Finance Committee make recommendations to Council regarding:
Approval of the proposed business registry program (BRP) ordinance
Approval of the proposed business registry fee (BRF)
Approval of exemption of non-profit organizations from the business registry fee
Confirmation of Council’s intent to exempt home-based businesses from the BRP
Approval of a 60-day grace period for existing businesses to comply with required
permits
Approval of an annual increase in the BRF equal to the Consumer Price Index (CPI) for
all urban consumers for the San Francisco-Oakland-San Jose, California Metropolitan
Area.
BACKGROUND
On January 23, 2006, staff reported to Council regarding business license tax and business
registry fee options. After much discussion, Council elected to proceed with a business registry
which would pass through nominal implementation costs to businesses, rather than a business
license tax which is typically revenue oriented, believing that the business community and the
City would benefit from the information collected through the registry program. Council
Members directed staff to determine the feasibility of minimizing the impact of the registry fee
on the smallest businesses and to exempt non-profit organizations. Staff reported that a business
registry would yield many benefits to the City and its residents and businesses, including:
Gathering data needed to support economic development planning between businesses
and the City.
Assisting City businesses and residents in locating goods and services closer to home,
promoting retail, business-to-business sales, and e-commerce.
CMR: 105:07 Page’l of 6
Helping the City to better understand its business community, and helping make the
City’s planning, fire, public safety, and security assistance activities more responsive to
business needs.
Providing data to develop recommendations on land use trends and to better coordinate
transportation programs such as commute coordination and transportation demand
management.
Providing the Regional Water Quality Control Plant with updated information to identify
all facilities that must comply with the sewer use ordinance.
Allowing the City to make available to businesses and residents valuable business profile
information through a centralized database on the City’s web site, and therefore
increasing e-commerce within the Citv.
Allowing the City to integrate sales tax information with other measures of business
activity (e.g. transient occupancy tax generators) in Palo Alto.
Providing data to help update GIS information thereby improving the information
available to the City’s emergency response teams and Public Works and Utilities staff for
informed, timely, and accurate decision-making.
Helping encourage businesses to obtain appropriate permits and comply with applicable
codes, zoning and safety requirements.
Helping protect the interests of legitimate Palo Alto businesses in the City from unfair
competition from businesses operating in violation of federal, state, and local laws.
DISCUSSION
Since the January 23, 2006 Council meeting, staff has undertaken the following:
Development of Initial Database of Palo Alto Businesses: Staff compiled the BRF databases
from a number of sources, including the Franchise Tax Board; "Reference USA," an online
database; and the City’s utilities billing system. A master list of all businesses in Palo Alto
was assembled. Its 13,000 items include home-based businesses that will be identified and
eliminated during the initial registration process, as well as probable duplicates and/or
businesses that have since relocated.
Consultation with Other California Cities with a BRF: Staff spoke with 5 other cities in
California -- Diamond Bar, Windsor, Temecula, Encinitas, and Agoura Hills -- regarding
implementation of their business registry program. In addition, staff visited the cities of
Fremont and Benicia to review demonstrations of their business registry software, and
discussed business license tax administration with the cities of Menlo Park, Cupertino and
Hayward.
CMR: 105:07 Page 2 of 6
o Development of Application Form: Staff developed and circulated to other departments a list
of questions to pose to Palo Alto businesses for incorporation into the registry and for use by
City departments such as Planning, Police and Fire. (See Attachment B: Sample Application
Form)
Fee Structure: Staff analyzed the legal limits on the fee structure, legality of imposing late
fees, and appropriate exemptions from the registry and/or registry fee. A tiered fee structure
is typically implemented when processing the data from certain classes of businesses costs
the City more than processing other classes. Since this is not the case here, a flat fee structure
is recommended. Cities are authorized to assess license fees by local ordinance provided such
fees do not exceed the reasonable costs associated with the BRP. Any additional tax on local
businesses would be subject to a two-thirds vote under Article XIII of the California
Constitution.
Based on staff’s cost model analysis, which represents 6,000 to 8,000 businesses, the fee for
businesses will be in the $35 to $55 range with a $35 annual renewal fee and a $25 late fee.
The final fee within this range will be based upon the scope of exemptions determined by
Council. The BRF cost model considers all program expenses including staffing, technology,
printing and mail, and administrative overhead. Staff proposes that current businesses must
comply with the business registration requirements within 60 days of the effective date of the
ordinance and that new businesses comply within 30 days of opening their businesses.
Regarding late fees, staff is recommending that a late fee would be appropriate for businesses
that do not pay the registry fee within 30 days of the due date.
o Exemptions: The types of businesses that are exempt from business license tax, by the US
Constitution, or Federal or State statutes (such as banks, insurance companies, and nonprofit
organizations) are not necessarily exempt from a BRF. Other California cities with a business
registry do not exempt any types of business: businesses doing business but not based in the
City, nonprofit organizations, and home-based businesses are all subject to the fee. Pursuant
to the earlier expressed intent of Palo Alto’s City Council, the proposed ordinance exempts
home-based businesses from the registry altogether and exempts non-profit organizations
from the registry fee. While the BRF model as designed supports Council’s intent, it must be
noted that to the extent any specific types of businesses or organizations are included in the
registry but exempted from the registry fee, the operating cost associated with such a fee
exemption must be borne by the General Fund rather than by other businesses in the BRP.
The State of California, Office of the Attorney General lists more than 900 non-profit
organizations in the City of Palo Alto. Staff refined the list by including only those
businesses with a Palo Alto zip code. The State’s Registry of Charitable Trust includes
traditional non-profit organizations such as the American Red Cross and the YMCA. In
addition, the Charitable Trust database includes numerous charities that register with the
State of California as non-profit organizations. It is estimated that the cost of exempting non-
profits from the BRF requirement will be approximately $27,000.
o Estimate of Costs of Implementation: Staff developed in detail its cost model for
implementation including staffing costs, software costs, printing and mailing, postage, and
overhead. Since staff has no way of knowing, prior to processing the first mailing to
businesses, exactly how many unique, non-exempt businesses exist in Palo Alto, the cost
CMR: 105:07 Page 3 of 6
o
model represents staff’s best estimate of costs and not an exact calculation. The initial
master database contains 13,000 businesses, of which staff estimates that 6,000 - 8,000 will
remain after the initial mailing is completed and any duplicates, non-operating, or exempt
businesses are deleted. Please see the Resource Impact section and Attachment C: Financial
Model for details on the cost model.
Software Research: Staff researched a number of options for managing the database
requirements of the BRF, and determined that the Accela database, which the City already
uses for Development Center permits, will serve the business registry program’s business
purposes. In addition to the initial implementation, Accela’s components will fulfill the
City’s phased implementation process, which includes on-line registration and information
gathering.
Presentation to the Chamber of Commerce Government Action Committee (GAC) and
Chamber Board: Staff met on October 4, 2006 with the GAC to update its members on the
implementation of the registry and to gain their continued input on the project. As a result of
that meeting, many of the questions on the registration form were modified and a detailed
explanation sheet ~was developed to explain the reasoning for specific questions. The GAC
wanted to know how the information collected by the BRF would be used and what parts of
the questionnaire would be public information. In addition, the GAC questioned the logic of
exempting home-based businesses from the registry. The GAC felt strongly that home-based
businesses must be included as paying participants in the business registry program. In the
event home-based businesses were included in the registry, the cost of the initial BRF
implementation will increase by approximately 4 percent to $346,000, and the cost of annual
renewals will increase by 33% to $260,000. This amount could be passed through to home-
based businesses through the same nominal flat rate fee charged to other businesses, or
alternatively subsidized by the General Fund. At this time, staff is not recommending
inclusion of home-based businesses, but intends to further analyze the issue in the second
phase of the BRF implementation.
The GAC expressed concern that when businesses applied for a business license certificate,
the City would require compliance with other planning, building and regulatory permit
requirements. The GAC therefore recommended that the City offer an amnesty period for
businesses that are not in compliance with City ordinances that require permits. Staff
recommends that Council authorize a 60-day grace period for businesses to comply with
ordinance requirements before penalties are invoked.
Creation of Ordinance for Council approval: The City Attorney has prepared the
implementing legislation for Council approval thereby making the business registry fee
program a part of the Palo Alto Municipal Code. (See Attachment A.)
CMR: 105:07 Page 4 of 6
Next Steps
The tasks which staff must complete before implementation include:
Development and Implementation of a Marketing Plan: The benefits of the BRF must be
clearly communicated to businesses, residents, and City staff. Staff must develop a plan
to convey the message to encourage participation in the program.
Collection and Enforcement Coordination: To make the registry effective and fair, all
businesses must participate. Conversations with other cities indicate that coordination of
permit issuance is a strong enforcement tool to ensure compliance. The City’s model does
not include enforcement cost. As such, the best leverage the City has for enforcing the
requirement to participate in the BRF is by coordinating with all other permits required
for businesses operating in Palo Alto. This information will be available to other
departments through Accela. Administrative Services will work with the Planning, Fire
and Police Departments to ensure that other permits are not issued without proof of
participation in the BRF.
Web Site Development: This will be part of Phase 2 of the program implementation. A
web site with registry information accessible to the public and to businesses is a key
benefit of the registry. However, Phase 2 will not be accomplished until after the initial
implementation is completed.
Program Launch: Planned for July, 2007. Business registry applications will be mailed
to businesses in June 2007. However, beginning in April 2007, based on Council
direction, staff will contact businesses listed on the database to determine if they are
home2 based businesses and eliminate them from the database.
RESOURCE IMPACT
Cost estimates are approximate, since staff does not know the number of businesses in the City.
Staffs estimate is that there are 6,000 - 8,000 non-home-based businesses within Palo Alto. The
estimated resource impacts are summarized in the table below:
Number of Businesses 6,000 8,000
Cost of Implementation $322,000 "$333,000
Cost of Annual Renewal $173,000 $217,000
To recover the costs of the program, staff is proposing an initial application fee of $55, based on
the more conservative estimate of 6,000 businesses, with an annual renewal fee of $35.
Further, staff proposes an annual increase in the BRF equal to the Consumer Price Index All
Urban Consumers for the San Francisco-Oakland-San Jose, CA Metropolitan Area.
POLICY IMPLICATIONS
The actions described in this report are consistent with Council’s policy and program direction
provided at its January 23, 2006 meeting. The business registry program requires that all
businesses except home-based businesses register with the City and pay a fee to cover the cost of
such registration.
CMR: 105:07 Page 5 of 6
ENVIRONMENTAL REVIEW
The actions described in this report do not constitute a project for the purposes of the California
Environmental Quality Act.
PREPARED BY:
Senior Financial Analyst, Administrative Services
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
CARL YEATS/
Director, Adm}fiistrative Services
Assistant City Manager
ATTACHMENTS:
Attachment A: BRF Ordinance
Attachment B: BRF Application Form
Attachment C: BRF Financial Model
CMR: 105:07 Page 6 of 6
ATTACHMENT A
****NOT YET APPROVED
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO
ALTO ADDING CHAPTER 4.60 TO THE PALO ALTO
MUNICIPAL CODE REGARDING BUSINESS REGISTRATION
PROGRAM
The Council of the City of Palo Alto does ORDAIN as
follows:
SECTION i. Findings and Declarations.
finds and declares as follows:
The City Council
(A) A business registry database is needed to support
economic development planning between businesses and the City.
(B) A business registry database will assist City
businesses and residents in locating goods and services closer
to home, promoting retail, business-to-business sales, and e-
commerce.
(C) A business registry database will help the City to
better understand its business community, and helping make the
City’s planning, fire, public safety, and security assistance
activities more responsive to business needs.
(D) A business registry database will provide data to
develop recommendations on land use trends and to better
coordinate transportation programs such as commute coordination
and transportation demand management.
(E) A business registry database will provide the
Regional Water Quality Control Plant with updated information to
identify all facilities that must comply with the sewer use
ordinance.
(F) A business registry database will allow the City
to make available to businesses and residents valuable business
profile information through a centralized database on the City’s
web site, and therefore increasing e-commerce within the City.
(G) A business registry database will allow the City
to integrate sales tax information with other measures of
business activity (e.g. transient occupancy tax generators)
Palo Alto.
070213 jib O130037
e***NOT YET APPROVED
(H) A business registry database will provide data to
help update GIS information thereby improving the information
available to the City’s emergency response teams and Public
Works and Utilities staff for :informed, timely, and accurate
decision-making.
(I) A business registry database will encourage
businesses to obtain appropriate permits and to comply with
applicable codes, zoning and safety requirements.
(J) A business registry database will help protect
the interests of legitimate Palo Alto businesses in the City
from unfair competition from businesses operating in violation
of federal, state, and local laws.
(K) On February , 2007, the Finance Committee
recommended the addition of Chapter 4.60, Business Registration,
to the Palo Alto Municipal Code as hereinafter set forth; and
(L) The City Council, after due consideration of the
recommendation and a duly noticed public hearing held on __,
2007, finds that the proposed addition is in the public interest
and will promoze the public health, safety, and welfare.
SECTION 2. Chapter 4.60, Business Registration, of the
Palo Alto Municipal Code is hereby added to read as follows:
Chapter 4.60
BUSINESS REGISTRATION PROGRAM
4.60.010 Definitions
The following words, terms and phrases, when used in this
chapter, shall have the meanings set forth in this section,
except where the context clearly indicates a different meaning:
(a) "Business" means any commercial enterprise, trade,
calling, vocation, profession, occupation, or means of
livelihood, whether or not carried on for gain or profit.
(b) "Business registration certificate" means a written
statement mssued by the city to a business owner as evidence of
registering a business in the city.
(c) "Charitable nonprofit organization"means an
institution or organization which is conducted,managed or
carried on wholly for the benefit of charitable purposes and
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e***NOT YET APPROVED
from which profit or income is not derived, either directly or
indirectly, by an employee, officer or director of the
organization.
(d) "Fixed place of business" means a place of business
located in the city boundaries and occupied for the particular
purpose of conducting business.
(e) "Home based business" means a business conducted within
a residential dwelling unit, with the business activity being
subordinate to the residential use of the property. For the
purpose of this chapter home based business includes but is not
limited to construction contractors, gardeners, babysitters and
tutors.
(f) "Person" means and includes any business owner,
individual, firm, co-partnership, joint venture, association,
corporation, estate, business trust, or any other group or
combination acting as a unit.
(g) "Transitory business" means a business which is
carried on for a short duration (such as pumpkin sales, special
events, and filming) or a business that does not have a fixed
place of business (such as door ~o door sales).
4.60.020 Purpose
The purpose of this chapter is to establish a regulatory
mechanism to maintain accurate record of businesses conducting
business in the city for statistical purposes and to assist in
zoning compliance.
4.60. 030 Business Registration Requirement
(a) No person shall conduct any business in a fixed place
of business without first having obtained a business
registration certificate, paid the applicable business
registration fee and complied with all applicable provisions of
this chapter.
(b) A separate business registration certificate shall be
obtained for each business location and for each separate type
of business at the same location.
(c) The issuance of a business registration certificate
under this chapter shall not excuse the business from complying
with other applicable Code requirements.
070213 jlb 0130037 3
4.60. 040 Exemptions from Business Registration
The following types of businesses shall be exempt from this
chapter.
(a)Home Based Business.
(b)Transitory Business.
(c) Any business otherwise exempt from this Chapter’s
requirements by virtue of the Constitution or applicable federal
or state statutes.
4.60.050 Fee Required
(a) Every person engaging in business in the city shall pay
a business registration fee as prescribed by resolution adopted
by the city council.
(b) The business registration fee is nor a revenue raising
device, but shall bear a reasonable relationship to the service
to be performed by the city and the costs incurred by the city
in reviewing, processing and acting upon the application.
(c) The city council shall, from time to time, review the
resolution fixing the business registration fee and shall
revoke, modify, adjust, add or determine any amount or rate of
such business registration fee.
4. 60. 060 Exemption from Fee
(a) The following businesses shall be exempt from payment
of fees pursuant to this chapter:
(i) Charitable nonprofit organizations.
(2) Any business otherwise exempt from payment of fees
required by ~this Chapter by virtue of the Constitution or
applicable federal or state statutes.
(b) Any person claiming a fee exemption pursuant to this
section shall file a sworn statement, on a form prescribed by
the City, stating the facts upon which the exemption is claimed
and shall furnish such information and verification as may be
required. In absence of such statement substantiating the
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****NOT YET APPROVED**~*
claim,such person shall be liable for the payment of the
license fee imposed by this chapter.
4.60.070 Application Procedures
Every person operating a business in the city shall apply
to obtain a business registration certificate on a form
prescribed by the city. Upon receipt of a completed application
and any fee required, the city shall process the application and
issue a business registration certificate. The application may
be reviewed by other city departments or governmental agencies
to determine if the business premises to be occupied meek the
requirements of federal, state, and local laws.
4.60.080 Contents of Business Registration
Certificate
Upon the payment for business registration, the city shall
issue to the applicant a business registration certificate which
shall contain the following:
(i)Name of business;
(2)Business location;
(3)Expiration date;
(4)Certificate Number; and
city.
(5)Such other information as deemed necessary by the
A separate certificate must be obtained for each and
every branch establishment or separate place of business in
which a business is carried on.
4.60. 090.Term and Annual Renewal of Business
Registration
(a) Term. A business registration certificate shall be no
more than one year. Unless otherwise specified, all certificates
shall explre on June 30th. Business registration fees shall be
due and payable annually in advance.
(b) Renewal. Business registration certificates shall be
renewed annually on a form prescribed by the City. Every
application for the renewal of a certificate shall be made at
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*e**NOT YET APPROVED
least fifteen days prior to the expiration date of such license.
Any person applying to renew a business registration shall
submit to the city a completed renewal application and pay the
renewal fee.
(c) Alternative Periods. If deemed necessary, the city
may establish alternative registration periods for businesses.
4.60.100.Refunds
No business registration fees or penalties collected shall
be refundable.
4.60.110.Duplicate Copies, Modification and Transfer
of Business License Certificates
(a) Duplicate business registration. Upon filing a
statement indicating that a business registration certificate
has been lost or destroyed, and after paying a fee, a duplicate
business registration certificate shall be issued by the city.
(b) Modification to business registration. A business
registration certificate may be amended to reflect a
modification after paying the business registration fee.
(c) Transfer of business registration certificate.
business registration certificate shall not be transferable.
A
4.60.120.Posting and Keeping Business Registration
Certificate
Any person engaging in business subject to this Chapter
shall keep a business registration certificate posted in a
conspicuous place upon the premises where the business is
conducted.
4.60.130.Entry to Inspect
The city shall have the power and authority to enter into a
business, free of charge and at any reasonable time, and require
to inspect the business registration certificate posted in a
conspicuous place upon the premises.
4.60.140.Rules and Regulations
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****NOT YET APPROVED****
The Director of Administrative Services may adopt rules and
regulations from time to time to implement this Chapter.
4.60.150.Penalties and Remedies
(a) Penalties for delinquency.Any person engaging in
business in the city that fails to secure a business
registration certificate or fails to pay the appropriate
business registration fee shall be Subject ~o a late fee in an
amount to be determined by resolution.
(b) Action to collect. If a business fails zo comply with
the fee requirements of this action, the City may refer the
matter zo a collection agency and/or the city attorney may file
a civil action against any business. Notwithstanding subsection
(a) of this section, should courr action be required to collect
any business registration fee and/or penalties, an additional
penalty shall be charged equal to the cost incurred by the city
for coUrt action, including but not limited to reasonable
attorney fees. All penalties shall be added ~o the business
registration fee and shall become due and payable along with the
delinquent business registration fee.
(c) Remedies Cumulative. All remedies prescribed under
this Chapter shall be cumulative and the use of one or more
remedies by the City shall no bar the use of any other remedy
for the purpose of enforcing the provisions of this Chapter.
4.60.160.Appeal
Any person aggrieved by any declsion of the city with
respect to. the issuance or denial of a business registration
certificate shall have the right ~o appeal to the Director of
Administrative Services or his or her designee by filing an
appeal with the city clerk within ten days of the date of the
action being appealed and paying any appeal fee determined by
resolution of the city council. The decision of the Director of
Administrative Services or his or her designee shall not be
appealable.
SECTION 3. The City Council finds that the changes
effected by this ordinance are exempt from the provisions of the
California Environmental Quality Act (CEQA), per section 15061
of CEQA Guidelines, because it can be seen with certainty that
there ms no possibility that the project will have a significant
effect on the envlronment.
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eeeNOT YET APPROVED
SECTION 4. Any provision of the Palo Alto Municipal
Code or appendices thereto inconsistent with the provisions of
this Ordinance, to the extent of such inconsistencies and no
further, is hereby repealed or modified to that exzenz necessary
to effect the provlsions of this Ordinance.
SECTION 5. If any section, subsection, sentence,
clause, or phrase of this Ordinance is for any reason held to be
invalid or unconstitutional by a decision of any court of
competent jurisdiction, such decision shall not affect the
validity of the remaining portions of this Ordinance. The City
Council hereby declares that it would have passed this Ordinance
and each and every section, subsection, sentence, clause, or
phrase not declared invalid or unconstitutional without regard
to whether any portion of the ordinance would be subsequently
declared invalid or unconstitutional.
SECTION 6. The Council finds that the adoption of this
ordinance is exempt from the provisions of the California
Environmental Quality Act- pursuant to CEQA Guideline §15378(b)
(3), in that it involves creation of a governmental funding
mechanism or other governmental fiscal activity which do not
involve commitment to any specific project which may result in a
potentially significant physical impact on the environment.
SECTION 7. This ordinance shall be effective on the
thirty-first day after the date ~of its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Mayor
APPROVED:
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City Attorney City Manager
Director of Administrative
Services
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= DRAFT i9 =ATTACHMENT B
00-xxxxxxxxx
CHECK ALLTHAT APPLY: [--] New Business [--] Change of Business Name/Address [-~ Change of Ownership
D Renewal [---] First Time Registration D Non-Profit
NOTE: Information on this form is considered part of Public Record Files and will be made available upon request.
Business Name:
In business since:
Business Location: (Street Address)
Number Street City State
Note: If your business has more than one location, you must submit a completed application for each location.
Mailing Address (if different)
Zip
Business Email Address (optional):
Number Street City State Zip
(Please provide email address to receive information regarding BRF changes or renewals by email rather than by postal mail .)
Owner or Manager:
Emergency Contact: Name and
Phone Number:
Type of Business:(Please check all that apply)W ole le Prof s,o a,
Retail Service Construction Restaurant
Warehousing Real Estate Banking OTHER
Rental Sales Administrative Offices Specify:
Type of Ownership: -~Corporation
~ Partnership
~ Sole Proprietorship
Franchise OTHER: please describe
(Please check all that apply)Employee Classification:
[] LLP
Managers
Professionals
Retail Clerks
Restaurant Staff
Business ID Information:
Researchers Commission sales
Banking Accounting
Automotive OTHER
At least one form of ID is required for registration.
Describe ’Other’:
Employer ID/Federal Tax ID
Please provide your California seller’s permit number:
Number of Employees living in Palo Alto:Within 10-20 miles
Total Number of Employees:
Square Footage:
Less than 600 sq ft
5000-10,000 sq fi
(Do not include administrative offices)
600-999 sq ft
10,001-50,000 sq fi
Full Time:Part-time:
1000 - 4999 sq ft
50,001 or lnore sq fl
Page 1
To assist the Citv with identifying employee parldng needs, please provide information on your company parking
patterns.
Does your company provide on-site employee parking? [] NO [~ YES If YES, How many spaces? I__
Do any of your employees park in City Permit lots? If yes, please indicate the number of permit holders working for
your company.
Would your business benefit from additional parking facilities in Palo Alto?[--1 NO [~ YES
Would you like more information about alternative commute options for your employees?[~ NO _~ YES
Would you like more information about programs offered by the City?
(Check all that apply:)
Parks & Open Space
Recreation & Youth Sciences
High-speed Internet service at or above T-1 speed
Street Maintenance or other Public Works
Emergency Preparedness
Fire Prevention Education
~
Arts & Culture
Recreation and Youth Sciences
Other Community Services programs
City Utilities - gas, water, electric, wastewater
OTHER (please specify)
Fire Department Question:
If any of the following describes your business, please contact Dan Firth, Deputy Chief for Fire Operations in
the Fire Department at (650) 329-2233.
- There are hazardous materials used, stored, or transported in my business
- My business conducts or involves public assembly, such as in a restaurant,
bar, hotel, theater, or church.
- My business shares occupancy with another business.
If yes, what is the name of the other business?
~Yes ~ No
Yes No
Yes No
Police Department Question:
If any of the following describes your business, please contact Community Service Officer Janice Hall at (650)
329-2130. You can also send e-mail questions to: E-maih pd(~,city.palo-alto.ca.us.
- My business needs information about getting an alarm permit.[~ Yes [~ No
- My business has firearms or explosives on site.~J Yes[~ No
* EXEMPT BUSINESSES & NONPROFIT ORGANIZATIONS:
If your business is a non-profit organization, it is exempt from the registration fee. However, you are
required to complete a Declaration of Exemption from Business Registration.
On-Site Manager
Name:
Title:
Signature:Date:
-- OFFICIAL USE ONLY: Do not write below this line. ==-
Received Revenue Collections Date
Page 2
ATTACHMENT C
20-Dec-06
Per Application Processing - IMPLEMENTATION
Total
Time Average
Required % of Time
(mins.) businesses Required
ISteps for Businesses on
Initial List:13,000
Data Entry 10.0 ~ 00%10.0
Research address(es)5.0 20%1.0
Collection activities**15.0 40%6.0
Answer calls questions 5.0 75%3,8
ISubtotal, tasks for all 13,000 20.8
Isteps for Business on Final List:
Mail certificate 2.0 100%2.0
Core processing 1.0 100%1.0
Make deposit 1.0 100%1.0
.Communicate with departments 5.0 70%3,5
ISubtotal, tasks for all on final list 7.5
Total Time for List of:minutes hours
10,000 344,750 5,746
8,000 329,750 5,496
6,000 314,750 5,246
Total Time (hours)
Productive work hours per year*1,687
Total Time (person~ears)
t0,000 3.4
8,000 3.3
6,000 3.1
"Assumes 40-hour work week with two 20-minute breaks per day; 52 weeks per year, 3 weeks vacation taken,
40 hours of sick time, 96 hours of holidays
BRF cost analysis 12-21 .xls initial orocessing costs 3/1/2007 10:20 AM
Per Application Processing - RENEWALS
20-Dec-06
Time
Required
(mins .)
#
businesses
Total
Average
Time
Required
Ste ps
Data Entry 10.0 100%10.0
Research address(es)5.0 15%0.8
Col lection activities**15.0 40%6.0
Answer calls, questions 5.0 50%2.5
Mail certificate 2.0 80%1.6
Core processing 1.0 80%0.8
Make deposit 1.0 80%0.8
Communicate with departme 5.0 50%2.5
ISubtotal, tasks for all on final list 25.0
minutes houm
10,000 249,500 4,158
8,000 199,600 3,327
6,000 149,700 2,495
Total Time for List of:
Total Time (hours)
Productive work hours per year*1 687
*Assumes 40-hour work week with two 20-minute breaks per day; 52 weeks per year, 3 weeks vacation taken
40 hours of sick time. 96 hours of holidays
BRF cost analysis12-21 .xls renewal processing costs 3/1/2007 10:20 AM
6,000 FINAL LIST
Im plementation Renewals
Fixed Costs
Staffing (permanent)*$77,903 $80,825
Staffing (temp)$102,308 $24,094
Staffing $180,211 $104,919
Accela Set-
up/maintenance/upload $15.000 $5,000
Computer hardware $1,800 $
Admin. Support / Overhead $54,629 $26,957
Storage $1.000 $1.000
Advertising $2.500
Subtotal Fixed Costs $255,140 $137,876
*Assume 1 permanent FTE hired; remaining staffing to be temps.
Variable Costs
Forms (applications)$2.340 $1,080
Envelopes $2,444 $1 128
Certificates $150 $150
Intro Letter inc. mail
merge & setup $1.190 $549
Postage (.58)$17,998 $9,602
Folding, Stuffing,
Metering, Sealing $910 $420
Per-piece Costs Impl Renewal
Forms (applications)$0.18 $0.18
Envelopes $0.06 $0.06
Certificates 0.025 0.025
Intro Letter inc. mail
merge & setup 0.065 0.065
Postage*$1.38 $1.60
Folding, Stuffing,
Metering, Sealing $0.07 $0.07
Subtotal Variable Costs $25,032 $ 12,930 Subtotal Variable Costs
Contingency $42,026 $22621
TOTAL $322,198 $173,426
Fee per Business $54 $29
Assumptions:
1 Temp Admin. Specialist - Step 3 (SEIU Hourly) : $23.32/hour linc. medical stipend)
Annual cost calculated at 23,32 times 2080 hours per year
2. Permanent Acct. Specialist: $25.831hr plus 45% benefits
Annual cost calculated at 25.83 times 2080 hours times 1.45 (to include the cost of benefits).
3. Staffing plan assumes 1 permanent FTE with remaining needs filled by temp(s).
Supplies+printinq
Paper
Envelopes
Forms
Certificate
4 Administrative costs calculated at Revenue Collections’ non-salary budget per FTE (NIC Bank Card Service fees)=$17.570/FTE
5. Using #10 envelopes for all mailings, including return postage on applications.
6. 60.8 cents postage on initial ~nailing and 37 cents on paid return postage.
7. Number in Database:13.000
Number remaining ~n d/base
8. after implemtn 6.000
9. Number FTEs needed:
Initial implementation:3.1
Renewals:1.5
10. Annual labor cost increase (between implementation and renewal) = 3.75%
$1.78 $2.00
0
0
0
0
BRF cost analysis12-21 .xls 6.000 final list 3/1/2007 10:23 AM
8,000 FINAL LIST
Implementation Renewals
Fixed Costs
Staffing (permanent)*$77.903 $80,825
Staffing (temp)$109,495 $48,901
Staffing $187_398 $129,725
Accela Set-
up/maintenance/u pload $15,000 $5,000
Computer hardware $1,800 $
Admin Support / Overhead $57,232 $35,942
Storage $1,000 $1,000
Advertising $2,500
Subtotal Fixed Costs $264,930 $ 171,667
Variable Costs Per-piece Costs
Forms (applications)$2.340 $1 440 Forms (applications)
Envelopes $2 444 $1 504 Envelopes
Certificates $200 $200 Certificates
Intro Letter $1 190 $732 ntro Letter
Postage $18,800 $12.803 Postage
Folding, Stuffing, Sealing $910 $560 Folding, Stuffing, Sealin
Subtotal Variable Costs $24974 $16,680 Subtotal Variable Cos! $
Contingency $43 486 $ 28,252
TOTAL $333,390 $216,599
Fee per Business $42 $27 Supplies+printing
Envelopes 0.0553425
Forms 0.18
Certificate 0.025
Assumptions:
1. Temp Admin. Specialist- Steo 3 (SEIU Hourly) : $23,32/hour [inc. medical stioend)
Annual cost calculated at 23.32 times 2080 hours per year.
2. Permanent Acct. Specialist: $25.83/hr plus 45% benefits
Annual cost calculated at 25.83 times 2080 hours times 1.45 Ito include the cost of benefits).
3 Staffing plan assumes 1 permanent FTE with remaining needs filled by temp(s).
4. Adminisirative costs calculated at Revenue Collections’ non-salary budget oer FTE (NIC Bank Card Service fees)=$17.570/FTE
5. Using #10 envelopes for all mailings, including return postage on applications.
6. 63.8 cents postage on initial mailing and 40 cents on paid return postage.
7. Number in Database:13.000
Number remaining in d/base
8. after implemtn 8,000
9. Number FTEs needed:
nitial implementation:3.3
Renewals:2.0
10. Annual labor cost increase Ibetween implementation and renewal) = 3.75%.
Impl Renewal
$0.18 $0.18
$0.06 $0.06
0.025 0.025
0.065 0.065
$1.45 $1,60
$0.07 $0.07
1.84 $ 2.00
BRF cost analysis12-21 .xls 8 000 final list 3/1/2007 10:21 AM
10,000 FINAL LIST
Implementation Renewals
Fixed Costs
Staffing (permanent)*$77,903 $80.825
Staffing (temp)$116.682 $73,707
Total Staffing $194,586 $154,532
Accel a Set-
up/maintenance/upload $15,000 $5.000
Computer hardware $1,800 $
Admin. Su ~port / Overhead $59,835 $ 44.928
Storage $1.000 $1.000
Adve rtising $2,500
Subtotal Fixed Costs $274,721 $ 205 459
20-Dec-06
Variable Costs
Forms (applications)$
Envelopes $
Certificates $
Intro Letter $
Postage $
Folding, Stuffing, Sealing $
Subtotal Variable Costs $
Per-piece Costs
2,340 $1,800 Forms (applications)
2,444 $1.880 Envelopes
250 $250 Certificates
1.190.$915 Intro Letter
19,602 $16,004 Postage
910 $700 Folding, Stuffing, Sealin
25.826 $ 20,850
Contin,qenc¥$45.082 $ 33.946
Subtotal Variable Cos! $
Impl Renewal
$0.18 $0.18
$0.06 $O.O6
0.025 0.025
0.065 0.065
$1.51 $1.60
$0.07 $O.O7
1.90 $2.00
TOTAL $345,630 $260.255
Fee per Business $35 $26 Supplies+printin,q
Envelopes 0.0553425
Forms 0.18
Certificate 0.025
Assumptions:
1 Temp Admin. Specialist - Step 3 (SEIU Hourly) : $23.32/hour (inc. medical stipend)
Annual cost calculated at 23.32 times 2080 hours per year.
2. Permanent Acct. Specialist: $25.83/hr plus 45% benefits
Annual cost ~;alculated at 25.83 times 2080 hours times 1.45 (to include the cost of benefits).
3. Staffing ~lan assumes 1 permanent FTE with remaining needs filled by temp(s).
4. Administrative costs calculated at Revenue Collections’ non_salary budget per FTE (NIC Bank Card Service fees)=$17.570/FTE
5. Using #10 envelopes for all mailings, including return postage on applications
6. 63.8 cents postage on initial mailing and 40 cents on paid return postage.
7. Number in Database 13.000
Number remaining in d/base
8. after implemtn l&O00
9. Number FTEs needed:
Initial implementation:3.4
Renewals:2.5
10. Annual labor cost increase [between implementation and renewal) = 3.75%.
COMPARISONS - COST CHANGES FRO~/i 6,000 TO 8,000
AND 10,000
initial renewal initial inc. renewal ~nc.
10K 345,630 260,255 1.07 1.50
8K 333,390 216,599 1.03 1.25
6K 322,198 173,426 1.00 1.00
10k fixed 274,721 205,459 1.08 1.49
8K fixed 264,930 171,667 1.04 1.25
6K fixed 255,140 137,876 1.00 1.00
10k var 25,826 20,850 1.03 1.61
8k var 24,974 16,680 1.00 1.29
6k var 25,032 12,930 1.00 1.00