DATE:
STAFF REPORT
February 23, 2026
Item No. 10
TO: Honorable Mayor and City CounJ4-x
FROM: Dr. Sean M. Moore, City Manag
PREPARED BY: Fermin Preciado, Director of Development Services LKFo r- Benjamin J. Matlock, Deputy Director of Community Development/3-- SUBJECT: Business License Program Discussion
RECOMMENDATION:
That the City Council:
1. Evaluate the cost/benefit of a potential business license program; and
2. Provide further direction to staff.
BACKGROUND/DISCUSSION:
The City of Yucaipa's requirement for a business license was eliminated in 2024 and replaced with a zoning clearance program in late 2025. At the time, the rationale for doing so was that the benefits provided by the program did not align with the General Funds' costs of administering the requirement for a business license. The term "business license program" means different things to different municipalities and the City of Yucaipa's "program" was more closely aligned with a business registration process. After further evaluating, the costs were determined to outweigh the benefits.
However, certain components were retooled to meet the City's zoning considerations in a more focused manner. This retooled program is now termed the City's "zoning clearance process" which was adopted by the City Council in November of 2025. The City continues to retain the ability to issue a business license to businesses who require it to operate due to financing, insurance or other operational reasons. Additionally, certain types of businesses continue to be required to hold an active business license. A reference between the two programs is identified below:
02/23/2026 City Council Agenda
Old Business License Program
All businesses, including
Businesses with a physical
Applicability
contractors, vendors, and brick and
presence
mortar establishments
Business Expense
Annual fee
One-time fee
Business Operation
No, but it may help flag potential
Yes, the application is specific
Approval
land use issues
to find out how the business
will op erate
No
Yes, conditions are applied for
Conditions
required permits and other
relevant details
Yes
Not required — Building Permit
Contractor License
process is able Yucaipa Permit
Verification
Exchange is able to
automatically verify license
Yes, subscription is needed for a
Not required — integrated into
Software Requirements
business license program or an
existing Tyler contract
amendment to the Tyler Contract
Ongoing — Issue license and send
One-time
Administration
annual reminder notices. 1 full-
time staff member was required
Sales Tax
Did not address sales tax location
Brick and Mortar filings are
for out of area businesses
Yucaipa -based
Allows inspection to ensure a
Allows inspection to ensure
Code Enforcement
license is valid
business is consistent with
zoning clearance
Fire Department
Annual list that can be used for
Can be a condition of approval
Inspections
inspections
with Ordinance
Business Contact
Updated annually
Provided at initial application
Staff is available to provide additional context on concerns or specific limitations of the current process. Additionally, staff has accumulated cost estimates to implement a business license program should that be the direction provided by the City Council. Those estimates include a software implementation of approximately $48,000, annual license fees of approximately $13,000 and one additional FTE with a fully burdened cost of an estimated $150,000 annually. The position would be scoped in accordance with anew program so the cost is purely an estimate. For context, the eliminated business license program produced revenue of approximately $100,000 annually.
Based on the information provided above, Council has many options including implementing a new program, and/or modifying the existing program, or simply continuing with current practices. Staff is available for questions and prepared to execute the City Council's directive. 02/23/2026 City Council Agenda
FISCAL IMPACT:
The fiscal impact will be dependent on the City Council's provided direction ranging from $0 for no change to current practice to $200,000 per year for the implementation of a new business license program. Revenue associated with a new business license program would also be subject to future City Council direction and be limited to the cost of delivering the service.
Attachments:
1. Old Business License Form
2. Zoning Clearance Questions
02/23/2026 City Council Agenda
ATTACHMENT 1
02/23/2026 City Council Agenda
BUSINESS LICENSE APPLICATION
City Of ADMINISTRATIVE SERVICES DEPARTMENT 34272 Yucaipa Blvd.
Applications must be completed legibly and in entirety. Yucaipa, CA 92399 Asterisks [*] indicate items to appear on license. TEL 909/797-2489 FAX 909/790-9203
Application Fee (Totals include CA Mandated ADA fee of $4):
$70.00 annual - $30.50 quarterly - $20.56 monthly www.yucaipa.org * BUSINESS NAME:
* MAILING ADDRESS: (for licenses and notices)
BUSINESS PHONE:
Street Address City State Zip Code
* BUSINESS ADDRESS (where owner consents to receive Service of Process):
Street Address City State Zip Code
BUSINESS LOCATION ADDRESS (if different from above / Required for Zoning) Street Address City State Zip Code
DATE BUSINESS STARTED IN YUCAIPA: (or future start date if not yet established) WEBSITE: EMAIL:
TYPE OF BUSINESS: Full description (i.e., retail, wholesale, manufacturing, type of contractor, type of product, etc. Please be specific.) Standard Industrial Classification (SIC) Code: [Please see attached for more information] * OWNER/OFFICER NAME: HOME PHONE:
OWNER ADDRESS: (Residence of Owner if Sole Proprietorship; Headquarter location if Corporation) Street Address City State Zip Code
OWNERSHIP TYPE: (Check One) Use Asterisks [*] below to indicate other officers to appear on license. 0 Sole Proprietorship ❑ Partnership (or LLP) List All Partners (attach list if necessary) ❑ Trust ❑ Corporation (or LLC) List All Officers and Titles (attach list if necessary) SOCIAL SECURITY NUMBER (SSN) or INDIVIDUAL TAX ID NUMBER (ITIN):
FEDERAL ID NO (EIN): CONTRACTOR'S LICENSE NO:
DRIVER'S LICENSE NO: CA SELLER'S PERMIT NO:
IS THIS BUSINESS OPERATED OUT OF YOUR HOME? YES NO
IF YES, WILL PEOPLE COME TO YOUR HOME FOR PRODUCT OR SERVICE? BYES NO I declare under the penalty of perjury under the laws of the State of California that the foregoing is true and correct Print Name Signature of Owner or Designated Representative Date Please Note: Some businesses may need more than a business license. All businesses must comply with all applicable City, County, State, and Federal laws and regulations. The business owner/operator is responsible for obtaining all necessary permits, licenses, or approvals.
DO NOT WRITE BELOW - FOR OFFICE USE ONLY
COMMUNITY DEVELOPMENT DEPT APPROVAL
NEW ❑ REINSTATE ❑ CHANGE ❑ *BUSINESS LICENSE NUMBER:
02/23/2026 City Council Agenda
ATTACHMENT 2
02/23/2026 City Council Agenda
Zoning Clearance Questionnaire (all online)
Site Context
'Confirm Business Address
Number of Identified Parking Spaces
for Business
'Did a Previous Business Operate at
this Site?
If "Yes" to the above question, confirm the previous Business Type and Name of the prior Business in the questions below:
Proposed Operations
Business Type
Prior Business Name
'Name of Business
'Business Type
'Describe Proposed Business
Operations
'Business Hours of Operation
'Square Footage Used for
Business
'Provide SIC Code:
Previous Section I Next Section I Top I N
02/23/2026 City Council Agenda
Should the SIC code for your business fall under the classification of regulated industries as defined by Senate Bill 205, you will need to apply for coverage under the State Water Resources Control Board (SWRCB) General Industrial National Pollutant Discharge Elimination System (NPDES) Permit. If you do not already know your SIC code, search the OSHA database at the following link:
SIC System Search
Check all that Apply: Will the building/lease space area be used for any of the following operations? Food Service or Preparation? I 1
Automotive C
Repair/Maintenance?
Open Lot (Outdoor) Storage?
Alcohol Sales?
Creating Hazardous Waste?
Improvements?
'Are Exterior Improvements
Proposed?
If Yes, Check All that Apply:
Building Facade
New Signage [ -!
'Are Interior Improvements
Proposed?
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02/23/2026 City Council Agenda
If Yes, Check All that Apply:
Modifying Floorplan
(Partitions/Walls)
Mechanical
Electrical
Plumbing
Please Note: Any combination of the tenant improvements checked off above may require separate building permits to be submitted to the Building and Safety Division through the Yucaipa Permit Exchange. 02/23/2026 City Council Agenda