"Until new policies are adopted on this matter, the licensing authorities do not intend to issue new licenses." If there is no way to get a license (and if most licenses are being refused continuously for silly reasons) thne the municipality must simply stop issuing fines until this issue is sorted. Once clear and reasonable requirements are laid down (and I do not consider the things mentioned in the article to be reasonable), and they have all had the opportunity to apply for and receive the license, the municipality could again start issuing fines.
Monitor: Airstrikes hit Islamic State stronghold in Syria, killing at least 13 (Reuters)
from the article: Jerusalem baygele no more?