Unidentified Speaker (S1) opened a discussion Wednesday asking why Port Orchard keeps a $100 annual cabaret endorsement when there are only a handful of businesses that use it. "Why don't we just do a $0 cabaret license?" the speaker asked, noting the council's duty to balance business friendliness with public safety.

City permitting staff cautioned against eliminating fees without data. A staff presenter told the council that the city's practice is to recover administrative costs for regulatory permits and warned a $0 fee creates a subsidy and may violate the "gift of public funds" doctrine. The staffer offered to compile time-and-cost data so the council could consider reduced fees that still recover administrative costs.

Council members asked whether the state endorsement process or the city's permit software could be used to streamline administration. Nick from permitting explained the city charges a $10 technology fee on many permits to cover software subscriptions and said staff could analyze integration and true staff hours for new applications versus renewals.

Rather than eliminate the endorsement, the council directed staff and the city attorney to return with an analysis of minimum administrative cost recovery and several fee alternatives, including a reduced fee that preserves inspection authority. No formal motion or vote was recorded on the floor during this discussion.

The next step is for staff to compile and present hourly-cost estimates and draft fee options at a future meeting so the council can weigh business concerns against the city's ability to pay for inspections that protect public safety.