CR 06-041 Approve Ordinance 2006-963, Ordinance Amending Massage Therapy Fees in City Code Sec 1185.11
March 29, 2006
Council Report 2006-041
APPROVE ORDINANCE 2006-963, ORDINANCE AMENDING MASSAGE THERAPY FEES IN CITY
CODE SECTION II 85. II
Proposed Action
Staff recommends adoption of the following motion: Move to adopt Ordinance 2006-
963, amending City Code Section 1185.11, Massage License Fees for first reading.
Overview
One of the Business owners in Hopkins has approached staff about the current fee
structure for the Massage License. The business has recently lost three employees
and needs to replace them. When the current license situation is explained to
prospective employees, most feel that they will wait until the new license year to obtain
a license. The business is left without employees until July 1 st. This causes a hardship
for the business
Primarv Issues to Consider
. Why prorate this license when other licenses are not prorated.
. What would the financial impact be
. Are there other options
Supportina Documents
. Copy of Ordinance 2006-963
~~
Terry Obermaier, City Clerk
Financial Impact: $ Budgeted: Y/N
Related Documents (CIP, ERP, etc.):
Notes:
Source:
Council Report 2006-041
Page 2
. Why prorate this license when other licenses are not prorated.
This is the only annual license that the City issues to an individual as opposed to a
business. The individual must pay $150 for the first license and background check.
He/She then goes to work for someone else. Then the individual must pay another
$100 within the first few months of employment. Most of the therapists work part time.
. What would the financial impact be
Every year there are about three or four individuals that request an application in the
third quarter and probably another three to four that request applications in the fourth
quarter. Most of those who inquire in the fourth quarter wait until the first of July to
obtain their first license. In view of that, the City would loose about $150 to $200 in the
third quarter, but gain, at $25 per person, for a total of $75 to $100 in the fourth quarter.
The total loss in this scenario would be from $50 to $125.
. Are there other options
Massage licenses could be set up with a renewal date based on the original issue date.
This would be the only license that would be renewing through out the year. It would
mean staff would process renewals for this license every month. The time spent in the
process would cost more in time than the loss of revenue would be with the prorated
fee.
Another option would be to suggest to the business that they pay for the employee's
first license or the renewal. In many instances, that would probably work and some
businesses already do that. It is, however, difficult for a business that must replace
several therapists at one time.
ALTERNATIVES
1. Approve ordinance 2006-963 for first reading.
2. Continue the item to a later meeting to allow time to get more information.
3. Deny ordinance 2006-963
Staff recommends alternative one.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
ORDINANCE 2006-963
AN ORDINANCE AMENDING SECTION 1185.11, FEES
The City Council of the City of Hopkins does hereby ordain as follows:
Section 1: Section 1185.11 of the Hopkins City Code will be amended as follows:
1185.11 Fees. Subdivision 1. The fee for a therapy massage license will be
set by resolution from time to time. Each license shall be issued for a period of one
year, except that if the application is made during the license year, then the license
fee shall be one-fourth of the fee for each three months or part thereof for the
remainder of the license year. License and investigation fees must be submitted at
the time of application.
Section 2. The effective date of this ordinance shall be upon publication.
First Reading April 4, 2006
Second Reading
April 18, 2006
Date of Publication
April 27, 2006
Date Ordinance Takes Effect
April 27, 2006