City of Mesquite, NV Business Impact Statement (NRS 237.080) Bill No. 503 Amending Mesquite Municipal Code Title 2 Chapter 1, Section 2-1-11 Entitled, “Semiannual Gross Sales;” Section 2-1-12 Entitled “Gross Sales; Schedule of Fees;” Section 2-1-13 Entitled “Specific Fees and Regulations Enumerated; and Title 2 Chapter 2, Section 3A-17 Entitled “Unsuitable Locations;” and Title 2 By Adding a New Chapter 15, Entitled, “Public Utilities.” Upon request, a copy of the Business Impact Statement can be obtained from the Mesquite Clerk and such requests should be sent to: Mesquite Clerk Bill No. 503 – Business License Regulations & Fees 10 East Mesquite Blvd. Mesquite, NV 89027 or a copy may be obtained from the following website: www.MesquiteNV.gov/Bill503 Description of the Subjects and Issues Involved: The purposes of Bill No. 503 are to add new definitions, to add new categories of business licenses, to remove archaic language, to group similar businesses into similar business categories, to amend certain license fees, to delete and replace certain language for clarity and consistency, and to consolidate regulations pertaining to public utilities into one chapter of the Mesquite Municipal Code. 1. Description of the Manner in Which Comments Regarding the Proposed Rules Were Gathered, and Summary of Those Responses: A. NOTICE. A draft of the prospective Bill No. 503 and notice for public hearing were mailed to individual businesses currently affected by proposed changes to the Code or to Fees. Also, the draft Bill No. 503 has been posted to the City’s website, where those interested businesses can review the document and post comments. A press release was published to guide people to this site. Staff also emailed drafts of the Chapter on Utilities to each of the utility companies. They have reviewed at least two drafts. B. SUMMARY OF COMMENTS Staff met with groups of Hair / Beauty Salon workers to discuss possible changes to their licensing fees, and the manner in which the fee is determined. In the

past, some inconsistency in the way the code was interpreted led to some cosmetologists paying one fee, and others a different fee. Staff proposed several different fees, as well as methods in which the fee is determined. Salon owners felt the fees were too high. And when staff compared Mesquite’s fees to those of salon owners in the Las Vegas valley, ours were noticeably high. The owners also did not like charging a “per chair” fee. They wanted the salon owner to pay a base fee and then an additional fee per stylist working in the salon. They argued they don’t always have as many stylists as they have chairs and that they shouldn’t be penalized for having room to grow. The proposed changes in the regulations for this type of business have addressed both of these issues. Utilities Originally, the City contacted POOL/PACT about the current insurance levels for utility companies working in the public right-of-way. POOL/PACT suggested raising the limits. The City proposed those new limits to the utilities and several of them raised concerns about the proposed limits, stating that the proposed limits were too high and would add too much cost. At the same time, the City switched insurance carriers. The new broker, Kaercher Insurance, reviewed the current limits and approved them, stating that the current limits are sufficient. Consequently, the insurance limits were adjusted back to the current limits. The utilities were informed of this change back. None expressed concerns with keeping the insurance coverage requirements the same. The utilities also asked that the ordinance go into effect 30 days after passage, in order to allow time for proper implementation. 2. The Estimated Economic Effect of the Proposed Ordinance on Businesses, Including, Without Limitation, Both Adverse and Beneficial Effects, and Both Direct and Indirect Effects: A. Adverse Effects: Some classes of business will see their license fees go up due to a raise in the flat fee or the manner in which it is calculated. Some utilities will see their license fees go up due to leveling the playing field so all are paying the same fee. B. Beneficial Effects on Business: Most affected businesses would see their license fees go down, due to the proposed reductions in the flat rate fee. And their fees will be more consistent with similar business categories. Language in the code should be simpler and easier to understand.

Changes to utilities creates a simplified, uniform standard that all utilities can easily follow. Currently, there is an uneven playing field for the utilities performing the same function, but being licensed and billed differently. C. Direct Effects: Currently, there are only a few wireless carriers who voluntarily pay a fee. This ordinance would ensure that all wireless carriers pay the fee. The ordinance would also ensure that similar businesses pay the same fee. D. Indirect Effects: 3.

The following constitutes a description of the methods the local government considered to reduce the impact of the proposed ordinance on businesses and a statement regarding whether any, and if so which, of these methods were used: (include whether the following was considered: simplifying the proposed rule; establishing different standards of compliance for a business; and if applicable, modifying a fee or fine set forth in the rule so that business would pay a lower fee or fine).

A. Simplifying Proposed Rule. This is the reason for this proposed amendment. The current code is confusing and contradictory at points. This new section proposes to streamline and clarify exactly what is being asked of businesses. B. Establishing Different Standards of Compliance. Currently, similar businesses are being treated differently. This would level the playing field amongst businesses and a single simple standard for compliance. C. Modifying a Fee Set Forth In The Rule so That Businesses Would Pay a lower fee or fine. Many fees were lowered in the draft bill if they were seen to be significantly higher than other jurisdictions, or higher than other businesses providing the same type of product or service. 4. The annual estimated cost to the local government for enforcement of the proposed ordinance is as follows: A. It is not anticipated that the proposed rule will result in an increase in cost to the local agency.

5. If the proposed ordinance provides a new fee or increases an existing fee, the total annual amount the local government expects to collect: Approximately between $60,000.00 and $70,000.00