Council holds first reading to replace business-license code, sets civil infraction fine of $250

The Sandy City Council held a public hearing and approved the first reading of Ordinance 2025‑O3, an overhaul of Chapter 5.04 of the Sandy Municipal Code that staff said replaces decades-old text with a modern, model-code-based business-license chapter.

Kelly (city staff) told the council the draft “is repealing and replacing the entirety of chapter 5 0 4,” noting the city’s business-license code had not been substantially updated since the 1970s and that staff used the League of Oregon Cities model language as the base. She said the rewrite also clarifies what services businesses receive when they pay the license fee, including transit‑tax reporting, courtesy building and fire safety inspections, and a data source for the city’s audit disclosures.

The ordinance would: repeal and replace chapter 5.04 in full; add clearer provisions on issuance, suspension and revocation of licenses; add exemptions and guidance for small transient activities run by minors (lawn mowing, lemonade stands) and garage sales; and designate a violation of the chapter as a class C civil infraction, which the staff report described as $250 for the baseline penalty.

Councilors asked staff a series of implementation questions during the public hearing and discussion. Councilor Don asked whether the same baseline fine would apply to a large retailer; Kelly responded that the class‑C civil infraction is the baseline and that the code allows escalation and daily penalties for repeated noncompliance. Councilors also asked staff to bring more detail on how the business-license data ties to the city’s transit‑tax reporting and to consider fee‑schedule equity for residential rental properties (current schedule: an $85 base plus $6 per unit for multi‑unit landlords, which prompted questions about comparative burdens for apartment owners versus owners of scattered single‑family rental houses).

On short‑term rentals, staff explained those are treated as businesses under other sections (hotel/motel or transient lodging) rather than as residential rental property within the draft residential licensing subsection; the council asked staff to make that cross‑reference clearer in the code text.

After discussion, the council voted to approve the ordinance’s first reading. Councilor Maiden moved and Councilor Ramsayer seconded the motion; the presiding mayor called the vote and the motion passed.

The ordinance will return for a second reading after staff incorporates clarifying edits the council requested, including clearer cross‑references for short‑term rentals, improved language on posting and on how transit‑tax data is used, and a staff review of the residential rental fee schedule.

Why it matters: The rewrite updates a code that staff said was last materially revised in the 1970s, clarifies staff enforcement authority and procedures for business licenses, and creates a clearer framework for auditing and for assisting small businesses through inspections and front‑counter support.

What’s next: Staff will return with the revised ordinance for second reading and with a separate fee‑schedule review for residential rental licensing.