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Agenda Item - 2019-05-21 (10) 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Subject: Ordinance 2819, an Ordinance amending Section 20.02.025 of the Lake Oswego Code to eliminate business license requirements for businesses with right of way licensees under Chapter 51 of the Code Meeting Date: May 21, 2019 Staff Member: Madison Thesing, Management Analyst Rachel Sykes, Assistant Public Works Director Department: Public Works Action Required Advisory Board/Commission Recommendation ☒ Motion ☐ Approval ☐ Public Hearing ☐ Denial ☒ Ordinance ☐ None Forwarded ☐ Resolution ☒ Not Applicable ☐ Information Only Comments: Recommendation has been vetted through all affected departments: Planning, Finance, City Manager’s Office, and City Attorney. ☐ Council Direction ☒ Consent Agenda Staff Recommendation: Adopt Ordinance 2819 to expand business license exemption to include utilities with an effective, in good standing right of way license. Recommended Language for Motion: Move to enact Ordinance 2819. Project / Issue Relates To: ☐Council Goals/Priorities ☐Adopted Master Plan(s) ☒Not Applicable ISSUE BEFORE COUNCIL Currently, Lake Oswego Code Chapter 20 allows for business license exemptions for utilities that have an effective franchise agreement. Staff recommends expanding that exemption to include utilities with an effective, in good standing right of way license. BACKGROUND At the Council meeting on January 2nd, the City Council approved the enactment of Ordinance 2804, which establishes a new code chapter in the Lake Oswego Municipal Code. The new 6.2 Page 2 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Chapter 51 “Utilities Facilities in the Right Of Way” establishes uniform regulations for utility operations in the City’s right of way, as well as a licensing and registration process that replaces traditional franchise agreements. The City has moved to a consistent right of way licensing process for all utilities. Currently, Lake Oswego Municipal Code Chapter 20 requires all persons wishing to conduct business within the City to obtain a business license. Additionally, 20.02.025 provides exemptions to the required business license for some organizations and circumstances. Specifically, organizations operating under a City franchise agreement receive an exemption from the business license requirement. DISCUSSION With the right of way license process replacing individually negotiated franchise agreements, staff recommends the business license exemption be expanded to include effective franchise agreements and right of way licenses. The information required for a business license and renewals is captured in the right of way license application. Utilities are also required to register and meet with City staff annually as a part of the Chapter 51 compliance. Both provide the City ongoing communication and collaboration with utilities, as well as up-to-date contact information from the organizations. All of which were also being captured through a business license. By expanding the exemption to include right of way licensees, processes are more streamlined and effective for both the customers (utilities) and staff. This recommendation is after receiving feedback from utilities and reviewing with the affected city departments. ATTACHMENTS 1. Ordinance 2819. Ordinance 2819 Page 1 of 2 ORDINANCE 2819 AN ORDINANCE OF THE CITY OF LAKE OSWEGO AMENDING SECTION 20.02.025 OF THE LAKE OSWEGO CODE TO ELIMINATE BUSINESS LICENSE REQUIREMENTS FOR BUSINESSES WITH RIGHT OF WAY LICENSES UNDER CHAPTER 51 OF THE CODE WHEREAS, The City of Lake Oswego has constitutional and charter authority to manage its rights of way, including the information and application requirements for right of way users; and WHEREAS, The City of Lake Oswego has received feedback and consideration to align the right of way license process to the existing franchise agreement procedures; and WHEREAS, The City of Lake Oswego strives for processes to be streamlined and effective in the goals of the adopted policies; and NOW, THEREFORE, THE CITY OF LAKE OSWEGO ORDAINS AS FOLLOWS: Section 1. Section 20.02.025 of the Lake Oswego Code is amended by adding new text shown in double underlined type as shown below: 20.02.025 Persons Required to be Licensed, Exemptions. 1. No person shall conduct business within the City without having first obtained a license pursuant to this chapter unless that person is specifically declared exempt by subsection (4) of this section. Continuing compliance with the provisions of this chapter and the Lake Oswego Code is necessary for the maintenance of such license. 2. No person shall carry on business within the City pursuant to a license which has been suspended or revoked. 3. Any person that has neither a residence nor place of business within the City, but nevertheless carries on or engages in business themselves or through one or more agents or employees shall be licensed, subject to the requirements of this chapter. 4. Exemptions. The provisions of LOC 20.02.020 – 20.06.300 shall not apply to: * * * j. Businesses operating under a current, in good standing City franchise agreement or right of way license issued under Chapter 51 of this Code. * * * Section 2. Effective Date. As provided in Section 35.C. of the Lake Oswego Charter, this ordinance shall take effect on the 30th day following enactment. Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the _21st day of __May__, 2019. ATTACHMENT 1 Ordinance 2819 Page 2 of 2 AYES: NOES: EXCUSED: ABSTAIN: ___________________________________ Kent Studebaker, Mayor ATTEST: ___________________________________ Anne-Marie Simpson, City Recorder APPROVED AS TO FORM: ________________________________ David D. Powell, City Attorney