2. Richland County, SC 2008 Lighthouse Award Application 2
The Challenge
Richland County, South Carolina faces challenges like counties and cities everywhere. In
addition to ever-present budget challenges, there are also constant challenges, perhaps less urgent
but no less important, to improve operational effectiveness and efficiency. Meeting those
challenges means evaluating what is done and how. More importantly, it means daring to learn
new ideas, search for new ways of doing things – not simply doing old ways a little better – and
seeking better, greater visions. Ultimately, meeting challenges means embracing risks, and this
is perhaps the greatest challenge of all.
To evaluate the County’s business license operation, which was outsourced with a city, the
County initiated a benchmarking effort in October 2003. Participating were seven of the eight
counties in South Carolina with business license programs and four cities. Also involved was
USC’s (that is, the University of South Carolina) Institute for Public Service & Policy Research.
The initial benchmarking effort involved a thorough review of how business license operations
were conducted and how the County provided services to businesses. This effort resulted in the
identification of several significant issues, including the need for:
- a streamlined approach to providing services to businesses;
- greater use of technology to improve compliance, capacity, and convenience; and
- greater communication with the business community.
The County has various requirements of businesses, and these involve obtaining various licenses
and permits and paying various fees and taxes. The locations for these activities had been
scattered in buildings within a large downtown area. Businesses had to visit several locations
and departments to meet these obligations in order to operate lawfully within Richland County.
This fractured geography was mirrored in the County’s databases. Without a consolidated
database, the County would issue a business license to a business that owed the County
thousands of dollars in Business Personal Property Taxes. Without a common database, the
County would issue a refund for an overpayment of Hospitality Taxes to a business that did not
have a business license.
Compliance was not heavily enforced. Efforts to increase the County’s licensing capacity, i.e.,
targeting different business sectors to increase the number of businesses obtaining business
licenses, was indeterminate. Little attention was given to improving the convenience for
businesses in fulfilling the County’s business requirements – or in staff’s effort to assist
businesses in this endeavor. And finally, communication with the business community was
limited to mailing renewal forms and answering their questions by phone or in person.
The communication challenges also associated with this outsourcing had great impact on the
County’s knowledge of its own business license operations. The County believed this
knowledge and understanding is critical and fundamental to ensuring the operations were being
administered in as efficient, effective, and financially sound manner as possible. As a wise man
once observed, “It’s hard to know where you’re going if you don’t know where you are.”
3. Richland County, SC 2008 Lighthouse Award Application 3
The Solution
The concept of a Business Service Center (BSC) was the outcome of this benchmarking effort to
address these issues. The Business Service Center addresses some of the County’s fundamental
concerns regarding service provision to businesses. It has three primary functions: (1) improve
the coordination of County databases, (2) improve business compliance with applicable business
regulations and (3) improve the convenience to businesses. The critical element in fulfilling this
mission was, and continues to be, technology.
Official approval to proceed was not obtained until mid-October 2005. At that time, the Business
Service Center only existed on paper. Under an absolute deadline to be open January 3, 2006, a
team was quickly assembled consisting of five developers, a project manager, one network
engineer, a GIS analyst, and a new department head also serving as the primary business analyst.
They created a brand new department in 2 ½ months with desks, phones, carpet, PCs, scanner,
printer, two new employees and a fully functional custom-written business license software
system. The new, state-of-the-art software system was written by in-house staff that is integrated
with GIS and imaging, and is totally web-based, including a web-based cashiering module.
Database Management – While the Business Service Center became a “one stop shop” by
physically consolidating different business activities geographically, this was not the limit to
consolidation. The County’s assorted databases also began to be coordinated, if not outright
consolidated. This required consolidating the issuance of different licenses and permits as well
as the collection of taxes and fees that businesses need to pay. The licenses and permits include
Business Licenses, State Pyrotechnics Licenses, Peddlers Licenses, Hazardous Materials
Permits, and Precious Metals Permits. Fees collected include those associated with these
licenses as well as Zoning fees, Hospitality Taxes, Tourism Development Fees, Business
Personal Property Taxes, and others. This coordination greatly assists with compliance, ensuring
that businesses are not issued refunds if they have County liabilities and maximizes the use of
business licenses as leverage to enforce all the County’s business requirements.
The coordination extends beyond the County’s own databases. Other relationships are being
developed with the State’s own online business service center. There is also cooperation
between the County and the State Dept. of Revenue and the Dept. of Consumer Affairs. The
State’s Licensing Boards and other State
agencies are also being coordinated.
Servers and Software – Genius and elegance in
delivering complex solutions is in how
architecture is made simple. The County’s IT
Department standardized its technology
platforms for all new development, with the
Business Service Center being one of the first
benefactors. The tools of choice are Microsoft
ASP.NET and VB.NET for programming,
Microsoft SQL Server for database access,
Microsoft Project Server for project
management, ESRI ArcGIS Server for mapping,
`
Database Server
`
ArcGIS Server
`
ArcSDE Server
`
Imaging Server
`
DataBroker
`
Application Server
SQL Server
Stored Procedures
House for Business Data
Web Services
Crystal Reports OTG Imaging Software
House for GIS Data
(e.g. Business Layer)
GIS Web Services
GIS Applications
Main Application for Business Service Center
AtalaSoft. Image Viewer
`
Project Server
4. Richland County, SC 2008 Lighthouse Award Application 4
OTG for document image storage and retrieval, Crystal Reports for reporting, and Atalasoft’s
document image viewer for document printing and viewing. There was also a comprehensive
data conversion from the prior system to the County’s new system. Each of these serves an
important role in supporting the new system, from data preservation to protection from hackers.
Website – The BSC’s website (at www.rcgov.us/bsc) provides important information to
businesses. This information includes important announcements and contact information, all the
office’s forms, informational guides, frequently asked questions, a calendar of events, glossary of
terms, links to other business organizations and agencies, ordinances used by the department,
online Hospitality Tax payment vouchers, finding NAICS codes, finding what jurisdiction the
business is located in, online payments, and a deduction calculator.
Online Payments – The website also currently allows online calculations and payments of
business license renewals, ensuring payment accuracy. This dramatically increases the
convenience to businesses by providing twenty-four hour service from the convenience of their
own location. Online renewals also have reducing the staff time necessary to process renewals.
GIS – The software was designed from the start with GIS in mind, collecting information on new
businesses and storing that data as a GIS layer. This then gives the capability to display all the
businesses and their locations on an online map. The ability to query the locations of business
types, or delinquent businesses, or in relation to convoluted city limits becomes effortless. The
GIS component becomes even more important in light of public safety concerns, such as
identifying where businesses with Hazardous Materials permits are located.
Automatic Vehicle Locators (AVL) – The Business Service Center vehicles were one of the first
to have this tool installed to use GIS to track where the vehicle goes, how fast it goes, how long
it stays when it gets to its destination, and whether or not the seatbelt is used. It is primarily a
management tool to ensure that the vehicles, and the employees driving them, are using their
vehicles – and their time – efficiently and in accordance with County policies.
Laptops – Laptops, equipped with GIS layers, are used by inspectors in the field to see which
businesses are non-compliant, and where cities’ limits are. This is invaluable for ensuring that
only the appropriate businesses are inspected. It also shows those hard-to-find roads. Data can
also be entered in the field, and then uploaded to the system back at the office.
Barcode Scanners – These are used to save staff time in finding the appropriate business in the
system. More importantly, they also ensure accuracy by finding the exact business.
Networked Scanner – Electronic document imaging is important not only for reducing staff time
in searching for documents, but also for saving on record storage costs as well as reducing the
amount of space necessary for storing documents. It also ensures the document is available for
staff review regardless of how much time passes.
Project methodology – The Project Management Lifecycle was used to manage this massive
project. Once the green light was given, many hours went into planning the project. The plan
was executed and controlled by managing scope, time, cost, quality, human resources,
communication, risk, and procurement. As a result, the Business Service Center opened its doors
on time two and a half months later and within budget. The following phases of the Business
Service Center were also a tremendous success.
5. Richland County, SC 2008 Lighthouse Award Application 5
BEFORE AFTER
The Results
It was by specific design that the Business Service Center was borne from the Information
Technology Department, which has been absolutely essential to its spectacular success.
Improved Coordination – By coordinating with other County databases, staff ensures greater
compliance by businesses in obtaining required fees and permits by ensuring that businesses
requesting business licenses obtain all other required permits and licenses before being issued a
business license. This increases revenue and efficiencies while also improving operational
excellence for the County and its businesses. The dramatic improvement is best shown visually:
Improved revenues – Revenues, those collected and not collected by the Business Service Center
saw significant improvements. This includes business license revenues, of course, but also
Hospitality Taxes, which is enforced by the Business Service Center. Hazardous Materials
Permits saw substantial increases since businesses with business licenses were reviewed for
compliance in this regard. Business Personal Property Taxes have also increased. These
increases are a result of active enforcement by the Business Service Center and by using business
licenses as leverage to obtain compliance with County requirements.
Reduced costs – Costs of administering the County’s business license operation has decreased
substantially. Since the BSC’s opening, no additional funds have been requested beyond the cost
of the outsourcing agent’s last budget amount. Each fiscal year end sees tens of thousands of
dollars unspent. The increases seen following the BSC’s opening is the result of additional staff
and the implementation of a Classification & Compensation study. Operational costs remain
substantially below historical levels.
Better enforcement – With coordinated databases, BSC staff focused their efforts on active,
thorough, and consistent enforcement. Staff begins a series of steps to assist businesses that are
have County liabilities, whether for Hospitality Taxes, Business Personal Property Taxes, or
some other business-related liability, pay those liabilities prior to being issued a business license.
Additionally, ordinances have been revised to specifically authorize BSC staff to issue court
summons to further enforce compliance.
6. Richland County, SC 2008 Lighthouse Award Application 6
Better compliance – With improved enforcement naturally comes better compliance. By
coordinating the County’s and other business databases and using the business license as
leverage for enforcement, compliance with many different requirements have dramatically
improved. The software used identifies what requirements may apply to each business, based on
the type of that business, identified by NAICS codes. Those potential requirements are then
checked for applicability and compliance prior to a business license being issued.
This application is particularly critical to the public safety in Richland County as it relates to
Hazardous Materials Permits: the Hazardous Materials manager estimated that the 488 HazMat
permits issued in 2005 represented roughly only 20% of the businesses that should have HazMat
permits. Subsequent to the BSC’s enforcement, hundreds of businesses were found to need these
permits that did not have them previously.
Greater convenience – With the implementation of the Business Service Center’s website,
greater information and functionality was now available to businesses. Within four months of
the BSC’s opening, online payments were made available to businesses for the very first time.
The usage of online payments is increasing substantially every year, as seen in the chart below.
The number of online payments in 2008 represented approximately 10% of all businesses.
Year # of Online Payments Percent Increase
2006 200
2007 684 242%
2008 1,219 78%
Improved cooperation – The Business Service Center not only cooperates with other County
departments, the office also coordinates with State departments and shares business-related
information for improved compliance. The BSC just recently assisted the State Dept. of
Consumer Affairs, which regulates businesses extending credit, in identifying businesses that
need to register with that State agency. The BSC and the State Department of Revenue also
exchange information regarding businesses that are found in each other’s databases.
Better information – In administering the County’s business license operation, the Business
Service Center now has access to detailed information about that operation. This information is
essential in order to continuously improve all aspects of the operation, from revenue generation,
cost reduction, greater compliance, establishing policies and procedures as desired by the
County, and any other aspect included here. This information is then shared with County
executives. This knowledge also provides much greater accountability for public funds.
The Business Service Center’s website is also an important tool for providing information. A
wealth of information is now available to businesses that was previously not readily accessible.
The information on the website is updated frequently to remain current and useful.
The Business Service Center represents an outstanding achievement for Richland County. With
frequent attention to the variety of tools that technology continues to offer, the future of the BSC
is brighter even than its brief history. The Business Service Center will continue to grow and
develop in astounding ways that benefit the County as well as the greater Richland County
community. It may also serve as an example of the possibilities that exist for every operation.
7. Richland County, SC 2008 Lighthouse Award Application 7
Appendix A: Graphs and Charts
List of Potential County Requirements of Businesses
Approval Type Description
Life
Time
Before
License Active Edit
Bond - $1,000
Bond - $2500
Business License Costs
-
50
100
150
200
250
300
350
400
1998 -
1999
1999 -
2000
2000 -
2001
2001 -
2002
2002 -
2003
2003 -
2004
2004 -
2005
2005-
2006
2006-
2007
2007-
2008
Thousands
The increase in 2007 - 2008 results from implementation of a Classification & Compensation
study, not operational costs.
Business License Revenues
0
2
4
6
8
10
12
1998 -
1999
1999 -
2000
2000 -
2001
2001 -
2002
2002 -
2003
2003 -
2004
2004 -
2005
2005 -
2006
2006 -
2007
2007 -
2008
Millions
Fiscal Year
The line indicates when the Business Service Center opened.
8. Richland County, SC 2008 Lighthouse Award Application 8
Approval Type Description
Life
Time
Before
License Active Edit
Business License
Clearance from DHEC
Clearance from Fire Marshall
Clearance from Sheriff's Dept.
Clearance from Zoning
County Council Approval
Decal - Coin Operated Machines
Decal - Contractors
Decal - Limos, Shuttles, Taxis
License - Peddlers
Local - Accommodation Tax
Local - Bus. Pers. Prop. Taxes: County
Local - Bus. Pers. Prop. Taxes: Exempt
Local - Bus. Pers. Prop. Taxes: PT-100
Local - Bus. Pers. Prop. Taxes: PT-300 (DOR)
Local - Hospitality Tax
Local - Tourism Development Fee
Permit - Fireworks
Permit - Hazardous Materials
Permit - Precious Metals
Proximity Registration
Regulations - Sexually Oriented Businesses
SC Dept. of Consumer Affairs
SC Dept. of Labor Licensing & Regulation
SC Dept. of Revenue
SC Pyrotechnic Safety
SC Secretary of State
