Bethany considers crackdown on licensing scofflaws

Bethany Beach officials are getting tough on those who don’t get required rental or business licenses from the town by the deadlines – or, in some cases, at all.

Councilman Lew Killmer on Jan. 20 introduced an ordinance and a fee change that both aim to deal with those who require reminders before they apply for rental or business licenses, or who don’t apply for them at all, by adding administrative fees to cover the costs to the town of enforcing the license requirements and offering the town a way to pressure business owners to comply with the business license requirement.

The Town licenses about 800 rental units and 550 business each year, and Killmer said most of those licensees comply with the law.

“The vast majority – 96 percent – pays on time,” he noted. “There is a small percentage of those who have a pattern of not paying until they receive a friendly second notice,” he added, saying the fees were intended to make enforcement revenue-neutral in nature, as well as “an incentive to those few who chronically do not pay on time.”

Under the new fee structure, those renting their properties who do not apply for a rental license from the town by June 1 will be assessed a $50 fee.

Killmer noted that a complete rental license application includes a notarized certification from the property owner that the property being rented meets town safety requirements, which were introduced in recent years. Failure to provide the notarized safety certification would mean the application was not completed in a timely manner, and property owners will be assessed the fee.

Currently, the Town sends out application forms in March or April and sends a “friendly reminder notice” when it learns a property is being rented but has not been licensed for the year. Killmer said that generally happens in November – usually as a result of a Realtor paying required rental taxes on behalf of the property owner who hadn’t gotten the rental license. Code enforcement action isn’t taken until 30 days after that notice is issued, at which time the property owner is given 15 days to apply for the license or be subject to fines up to $500.

In an average year, Killmer said, about 35 of 800 property owners need a reminder before they apply for the rental license – about 4 percent. He said some property owners have a history of not applying or paying for the license until they receive that reminder.

Business owners are also sent license application forms in March or April. They are also required to submit the completed applications by June 1. Reminder letters are sent in mid-June to the business owners who haven’t applied for a license that year. Code enforcement officers are notified by Aug. 15 of any businesses that haven’t applied for a license but are in operation.

Killmer said a few businesses need the reminders about the license each summer but that they’re not usually the same businesses from year to year, and that it’s rare for code enforcement notification to be needed.

The Town would now add a $100 fee for not obtaining a business license prior to conducting business within town limits.

“We hope this will minimize the need to send out repeat notices,” Killmer said of the fee provisions.

Councilwoman Carol Olmstead said she was concerned about the June 1 timeframe.

“By June 1, people have rented their homes, businesses are opened,” she pointed out. “Maybe we should move this date up. If we make it May 1 or May 15, there’s time before the busy season gets going to see if businesses have their licenses in place and check with the Realtors. … They shouldn’t be open for business if they don’t have a license.”

But Town Manager Cliff Graviet said it really wasn’t a big issue for the Town, since so few people don’t apply for the licenses. With the forms sent out in March or April, he said owners can send the applications in any time after they’re received, enabling them to get the licensing done before they get really busy. “And only a few don’t,” he added. “This is just our first attempt, without having to legislate some draconian measures, to get compliance.”

Killmer emphasized that the fees were intended to recoup the Town’s costs for reminders and enforcement.

The council voted 7-0 to approve the new fees.

The ordinance given its first reading on Jan. 20 takes business licensing scofflaws from “friendly reminders” to enforcement action, giving the Town a way to force compliance that it doesn’t currently have – through cessation of town services to those business owners who don’t comply with the licensing requirement.

Under the proposed ordinance, the Town would have the right to shut down any business found to be operating without the annual license. It would also have the right to cut off trash and recycling services, and water service, to the business in question.

Council members on Jan. 20 questioned whether the draft ordinance was clear enough in the procedure that would be followed, and the council consensus was to specify that recycling services could be withheld, as well as to clarify that business owners served with notice of the Town’s intention to take enforcement action have five business days to comply or request a hearing before the town manager (with any appeal going to the town council) and a maximum of 10 business days to have that hearing.

“It’s a shame we have to do this, but because of the circumstances, we had no way of doing what this allows us to do,” Killmer said.

Councilwoman Margaret Young said she was concerned that termination of trash collection could become a nuisance for the Town.

“I don’t think Public Works would allow it to become a nuisance,” Killmer replied, “but unless we make it clear to the business owner that we’re quite serious… It’s not good for his business either when everyone sees his trash piling up,” he added.

Council members also suggested that notification by mail be done with a return receipt requested and that the notification also be sent to the business property owner, in cases where the business owner and the property owner are not the same.

The council is expected to hold a second reading and vote on the ordinance after it is revised.

Also on Jan. 20:

• Councilman Jerry Dorfman reported that the Budget & Finance Committee was set to recommend a 3 percent increase in property taxes for the 2013 budget, increasing the tax rate from 16.5 cents per $100 of assessed value to 17 cents per $100 of assessed value. The town last raised property tax rates three years ago. Most property owners in the town pay less than $500 per year in property taxes, and most will pay less than $15 more under the proposed increase, though it could generate about $49,000 in revenue.

While, he said, the town had been successful in its efforts to control costs, keeping them at a 7 percent increase, costs are still rising, with municipal costs up 15 percent nationwide on average. An additional $119,000 in expenses this coming fiscal year are expected to come largely from police and beach patrol personnel costs, which he said were due to the town’s efforts to catch back up with other municipalities in what it offers to recruit and retain high-quality employees.

The committee also discussed a possible 25-cent transaction fee for use of the town parking ticket stations, to offset the cost of processing payments. It would bring in about $45,000 per year, Dorfman said.

• Mayor Tony McClenny reported receiving a letter from Delmarva Power notifying the Town that it had issued a refund to the Town of $80,600, due to the actual cost of the recent Streetscape work coming in well below the estimate.

• The council voted 7-0 to approve the purchase of $143,000 in Kebony wood-composite lumber from the manufacturer, to continue replacement of traditional wood lumber on the boardwalk decking and railings. Killmer noted that the Town is now being approached by other municipalities to report on how the product is working, and he gave it a glowing review, saying, “It’s looking better and better each year.” Plans also call for the entrance ramp and deck around town hall to be redone in Kebony after upcoming water system work in the area.

• The council approved unanimously a change to the policy regarding temporary signs and banners for special events, increasing the size of permitted signs from 15 square feet maximum to 50 square feet maximum. The town manager has approval of such signs, which can be in place for up to seven days prior to an event, or as much as 21 days with special permission. After questions about the potential to reject signage, Graviet noted that he has not historically enforced prohibitions under town and state law on signage in highway medians.

• The council approved on a 7-0 vote an ordinance detailing maintenance, moving, replacement and abandonment procedures for grandfathered signage that is currently legally non-conforming. Existing grandfathered signs have been documented to assure future compliance with the code.

• Graviet reported that the dredging phase of beach replenishment is nearly completed in the town, with work this week being on the taper into non-replenished beach at the north end of the town. The town has material for restoration of the handicapped-accessible ramp stored in a warehouse, and contractors are scheduled to reconstruct it within two weeks. Enhancements to the ramp at Wellington Parkway are set to be done by the same contractor. Replenishment to Sea Colony’s private beach is also set to begin at the conclusion of the project, under a private contract between home owners there and the dredging contractor.

• Graviet reported that Delmarva Power has been working with the town on the replacement of streetlights in Bethany West, with all but five already done and those remaining to be done in the near future.

He also reported continuing work on stormwater issues by town employees, with one major swale off Route 26 set to be rebuilt in the near future.

Additionally, Graviet said the town is ready to test a new prototype lamp top for boardwalk lights, designed to reduce light pollution.

He also reported that the Town has hired the assistant to outgoing parking enforcement manager Bill Dowdell, who is set to retire in May, to take his place.

Those wishing to purchase old Bethany Beach parking meters can now do so through the Bethany Beach Volunteer Fire Company and eBay, according to Graviet. The old meters have little resale value and are being marketed as mementos. “They make great bases for lamps,” he said. The proceeds are going to the fire company.

• The council decided to discuss further a proposed change in requirements for changes to the town’s personnel policy, ahead of a future second reading for the ordinance. The ordinance would strike a recently introduced requirement for the town council to approve all changes to the personnel policies, which Graviet noted was at odds with both his contract and other portions of town policy. Council members said they wished to review it a workshop before a vote. That could push off a second reading by another month.

• McClenny announced that Killmer had been appointed to an advisory group on a proposed Senate bill that would institute minimum flooding and stormwater management standards statewide. Representatives of towns, counties, builders and the real estate and insurance industries are part of the advisory group, which could lead to legislation being introduced.

• The council observed a moment of silence in honor of former Planning Commissioner Kathleen Mink, who passed away Dec. 31, 2011, after a battle with cancer. “I believe we have truly lost a loving and kind friend,” McClenny said.