2012 2:00:00 PM

Monday, May 14, 2012 2:00 PM
Sparks Council Chambers, 745 4th Street, Sparks, NV

General Business: 6.5

Title: Discussion and possible action related to changing the city’s business licensing codes, ordinances, and fee schedules and franchise agreements for nonprofit organizations that either reside or perform services within the City of Sparks

Petitioner/Presenter: Shaun Carey, City Manager/Steve Driscoll, Assistant City Manager

Recommendation: To provide the City Manager and/or City Attorney direction on whether there shall be changes to the city’s business licensing codes, ordinances, and fee schedules and franchise agreements for non-profit organizations that either reside or perform services within the City of Sparks

Financial Impact: Unknown

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief: A citizen brought forward the potential business operational inequities between for profit and nonprofit organizations operating within the City of Sparks. The issue relates around the city’s business licensing codes, ordinances, and fee schedules and franchise agreements for nonprofit organizations that either reside or perform services within the City of Sparks. Currently, the City of Sparks exempts nonprofit organizations from being required to obtain a business license. The citizen’s question, also, is directed at the specific business of recycling hauling that is outside the city’s trash and garbage hauling franchise agreement requirements.

Background: At the March 26, 2012 Sparks City Council meeting, Mr. Tom Noblett of Tom’s Hauling and Clean-Up provided the Council with Public Comment noting that charitable organizations do not pay for licenses or taxes while doing business within the City of Sparks. The citizen’s concern was that these charitable agencies are in direct competition with for-profit businesses, like his, and having an unfair business advantage and possibly jeopardizing the survival of his fee and tax paying business. The citizen petitioned the Council to open Chapter 7 of the city’s Municipal Code regarding this situation. The City Attorney stated the city could look at other ordinances regarding charitable exemptions. The City Manager noted this inquiry from the citizen could be placed on a future Council Agenda if a Council member were to make such a request. Mayor Martini requested the item be agendized and brought back for Council consideration.

Analysis: The issue on the agenda covers two topics under the Sparks Municipal Code’s Section 5 – “Business Licenses, Taxes and Regulations” and Section 7 -- “Collection of Garbage and Refuse” related to charitable or nonprofit organizations versus for-profit businesses: 1) Business licensing, and 2) The collection of recyclable materials. Business Licensing Within the City of Sparks any person conducting business is required to obtain a business license unless the business is considered to be exempt (SMC 05.20.080, A. and C.) Exempt businesses include charitable or nonprofit organizations (SMC 05.08.030) and the exemption allows the qualifying businesses not needing to register with or otherwise obtain a business license from the city; not having the city provide any inspections of the business location; or not having to pay any fees associated with the operations of the business within the city. The Collection of Recyclable Materials Within the City of Sparks the hauling of solid waste recyclable material is regulated under SMC 05.20.050 – “Solid waste container rental and associated hauling of solid waste(s) or recyclable materials.” Under this section of the city’s Code, all garbage and curbside recycling are allowed and controlled under franchise agreements with a vendor(s). The Code does provide for exclusions for recyclable materials from the regulation of franchise agreements with the city (SMC 05.20.080, F.2. and K.). Additionally, SMC 07.12 – “Collection of Garbage and Refuse” provide specifically for a recycling program (SMC 07.12.070). This section of the city’s Code provides for the exclusivity of the collection of all garbage and curbside recyclable materials. The Code provides certain exclusions from the exclusivity of garbage and recycling regulations under SMC 07.12.070, C.1., allowing certain materials to be donated to charitable or nonprofit organizations (SMC 05.04.010).

Alternatives: 1. The City Council could choose to make no changes to the Sparks Municipal Code Sections related to business licensing and the hauling or recyclable materials. 2. The City Council to undertake a discussion of the various Sparks Municipal Code Sections related to business licensing and recyclable hauling and provide the City manager direction to work with the City Attorney and staff in create any appropriate changes to one or more of the city’s Code Sections.

Recommended Motion: A motion on this agenda item will be directly related to the discussion of the Council and any action(s) they would then direct.

Attached Files:

20120514 Agenda Business Licensing RE Charitable Organizations Exemptions.pdf

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