FOUNTAIN VALLEY : New Fees Approved for Some Businesses

Business owners who want to operate a massage parlor, taxi service, pool hall or pawnshop or sell alarm systems must pay between $50 and $350 to open their doors.

The City Council on Tuesday unanimously voted to start charging certain businesses a fee to cover investigation costs associated with granting business licenses.

“Instead of absorbing the cost of background checks, we’re passing it on to the applicant,” Mayor James Petrikin said. “We don’t think it’s fair to pass on the background check to taxpayers.”

The annual permit investigation fee is in addition to the charge for a business license, which is about $50 for most businesses. Some of the permit fees are new, while others were increased.

The fees include $350 for a massage parlor and escort service, an increase from $120; a new fee of $100 for a taxi service or alarm business; $175 for drug paraphernalia dealers and pawnshop owners, and $50 for a taxi driver, up from $20.

Elizabeth Fox, finance director and city treasurer, said that with these types of businesses, it takes city staff time to investigate an applicant’s request for a permit to operate.

Fox said that of the city’s 5,000 businesses, about 17 would be affected by the fees.

The revisions to the city’s code--the first in 20 years--also include increasing the fee for groups that hold bingo games. Cost to applicants will be $100, instead of $50 for an annual permit and $10 for a daily permit. Nonprofit groups will also be required to pay the fee.

Councilwoman Laurann Cook said charging nonprofit groups helps protect them by weeding out illegitimate bingo groups.

Council members also established a $315 fee for appeals. But the council voted 3 to 2 to waive the hearing fee if the appeal decision is in favor of the applicant.

Some council members said the fee could be a deterrent to applicants wishing to appeal denial of a permit. In five years, only one appeal has been heard, Fox said.

“If the person’s been wronged, the person should not be charged,” Councilman John Collins said.