Agenda Index City of Vancouver

POLICY REPORT
LICENSING

TO:

Vancouver City Council

FROM:

Chief License Inspector, City Clerk, and Director of Social Planning

SUBJECT:

Review of Liquor Licensing Referendum Process

 

RECOMMENDATION

A. THAT Council approve the liquor licensing process as outlined in Appendix A to replace the current process.

B. THAT Staff pilot the process for the balance of 2000 and report back to Council with an update on the implementation of the new process, early in 2001.

CITY MANAGER'S COMMENTS

The City Manager RECOMMENDS approval of A, B and C.

COUNCIL POLICY

· On August 1st, 1989, Council adopted a resolution requiring that all Class A Lounge/Pub, Class B-2 Restaurant, Class C Cabaret, Class D Neighbourhood Pub, Class F Marine Pub and Class G Retail Beer & Wine store liquor licensing applications be referred to referendum if they were located in close proximity to residential accommodation.

· On October 16, 1990, Council reaffirmed the existing Council policy that requires new liquor licensing applications and amendments to existing licenses be subject to referendum if the premises are located in close proximity to residential accommodation.

· The 1997 Granville Entertainment District policy waives the referendum requirement for new establishments in the entertainment district and for existing Cabarets and Class A licenses relocating to the district from surrounding residential areas. This exclusion was based on extensive public process carried out in this neighbourhood.

· On January 14, 1999 Council identified a number of issues that they wanted the Provincial Government to consider in its review of liquor licensing regulations. Following the release of the Provincial review, on April 13, 1999, Council supported in principle the reduction of liquor license types to only two - those establishments that serve food, and those that serve primarily alcohol, but insisted on the need for the Provincial Liquor Control and Licensing Branch to consider evidence of community impacts before issuing a license.

PURPOSE

The purpose of this report is to propose a new liquor licensing application process to replace the existing liquor licensing process, making it more flexible, less intrusive and more cost effective.

BACKGROUND AND DISCUSSION

On July 27, 1999, Council endorsed the review of the City Referendum process as a priority in order to ensure coordination with the revised Provincial Liquor Control and Licensing Act regulations. Council, City staff and Industry representatives have had concerns with the existing system to deal with liquor licensing applications, particularly with the City referendum process, which has been viewed on occasions as complicated, intrusive, expensive and not sufficiently flexible.

Council instructed staff to review the current process and report back with a proposed new process that would better address concerns expressed by the public, the industry and staff.

City staff from the Permits and Licenses, City Clerk, Social Planning and Planning Department, reviewed the existing liquor licensing process and developed the proposed new process. Brian Johnston, a consultant with the Public Involvement Review, assisted staff.

The proposed liquor licensing application process has been developed to provide for abalanced set of public input alternatives, to allow for a process that is simple, flexible and which will render sufficient information regarding the views of the neighbourhood and the public at-large, so that Council may make an informed decision.

On March 21, 2000 a focus group comprised of representatives of the industry, residents and establishment owners reviewed the proposed process. The group was facilitated by Brian Johnston. The group was in favour of the new process and believed that the proposed process had many benefits over the current one. Several points raised in the discussion, including the size of the areas to receive notice, have been incorporated into Appendix A.

Existing liquor licensing process

Liquor licenses are issued by the general manager of the Provincial Liquor Control and Licensing Branch (LCLB). The authority to issue and administer a liquor license comes from the Liquor Control and Licensing Act and its regulations.

The general manager of the LCLB needs to consider specific community needs in deciding whether to issue a liquor license. Some of the factors included in this assessment are: proximity to other social facilities and public buildings, number of licensed establishments in the vicinity, traffic, noise, parking, zoning, population density and trends. The views of local residents are also considered for most license applications.

Historically, the province has recognized the role of the local governments in the liquor licensing process. The province has stated for example: "Local governments are responsible for protecting the peace and good order of their communities and are often the first to receive complaints if problems arise with the operation of a licensed establishment." (From "Role of Local Government in the Provincial Liquor Licensing Process", LCLB).

Applicants must also satisfy other licensing and land use requirements of local government such as business licenses and zoning.

The liquor licensing process has several stages beginning with the presentation of an application and ending with the final approval or rejection. Most applications require local government input from the very beginning, and even though the final decision is made by the LCLB general manager, local government support or opposition to an application is respected in most cases.

In the City of Vancouver, Council has implemented a policy requiring legal agreements and/or time-limited development permits for new establishments (Class 'A' Lounge/Pub, Class 'C' Cabaret or Class 'D' Neighbourhood pub licensed establishments) or any existing establishments with the same license classification seeking extended hours or increasedseating capacity. Council policy and practices involve varying procedures including neighbourhood notification, legal agreements (ranging from housing and operating agreements to an agreement for the permanent closure or relocation of an existing liquor license), time-limited development permits and referendums depending on the situation. In summary, the policy states:

1 . New or amendments to a Class 'A' Lounge or Pub in major hotel developments, Class `C' cabaret, Class `E' Concert Hall/Stadium and Class F Marine Pubs are subject to legal agreements, a good neighbour agreement, neighbourhood notification and for specific situations, a time-limited development permit.

2. New Class 'D' Neighbourhood Pubs are subject to legal agreements, a good neighbour agreement, a time-limited development permit, neighbourhood notification and a referendum.

3 . Amendments to existing Class 'D' Neighbourhood Pubs are subject to legal agreements, a good neighbour agreement, neighbourhood notification.

4. New Class 'A' Lounge (Social Club/Non profit society) or amendments to existing licenses are subject to legal agreements, a good neighbour agreement, neighbourhood notification and a time-limited development permit for new applications.

Council's decision takes into consideration neighbourhood notification results as to the specific requirements of each application. The number of residential units within the notification area and the proximity of residential units to the subject site are also factors that are taken into consideration. Council may, with any of the above liquor licensing applications, require the successful completion of a neighbourhood referendum in accordance with city guidelines if significant neighbourhood issues are identified.

The proposed provincial policy change of limiting the number of liquor licenses to only two categories will eventually make the existing policy obsolete. Therefore, a new process must include checks and balances to comply with changes resulting from the provincial liquor review.

Existing Referendum Guidelines in Vancouver

The City of Vancouver has historically followed the process detailed in the manual "Requirements for the Conduct of Referenda", available in the City Clerk's Department.
Some of the specific guidelines included in the manual are: definition of a referendum area, mechanisms for notifying the adjacent community, holding of a public information meeting, conduct of the referendum by a market research company, appeal and cost. Existingreferendum guidelines for the City of Vancouver are summarized in Appendix B.

Other Municipalities

Obtaining public input for liquor licensing applications is not the same in every municipality. Appendix C provides a brief summary of practices in other municipalities.

PROPOSED PROCESS

The proposed liquor licensing process is fully set out in Appendix A.

Prior to submitting an application, all applicants are encouraged to meet with the Chief License Inspector. The first step of the process requires a sign to be erected on site and notice to be delivered to surrounding residents, community groups and businesses . Applicants are also encouraged to hold a public information meeting in the neighbourhood. At this point, except for certain applications that require the next step to run concurently, the Chief Licence Inspector will report to Council with a recommendation that may include further community consultation.

The next step for those specific applications required to run concurrently with signage and notice, or where it is determined additional community consultation is required, is that the City will hold a public meeting, after which the Chief Licence Inspector will report to Council and could recommend further consultation in the form of a telephone survey. If this step applies, a request to bid will be submitted to vendors pre-qualified by the Purchasing Department. Upon receiving the results of the survey, the Chief Licence Inspector will report to Council recommending approval or rejection of the application.

The recommended process is intended to act as a set of guidelines rather than as hard-and-fast rules. This will allow flexibility to assess each application individually within the context of each neighbourhood.

Staff also suggest that in specific cases a time limit should be placed on Council endorsements. A typical case where this clause could be invoked would be for an application that is supported in principle or where specific conditions are attached to the endorsement that place an onus on the applicant to take some further action. This time limit would be set on a case-by-case basis, having regard for the specific characteristics of each application.

APPLICATION FEES

There currently is one application fee of $1,550.00 which applies to all liquor applications regardless of the complexity or the City's processing costs. This fee is too high for straightforward applications that do not require notification and too low for a complex community process.

It is proposed that a new 4-level fee schedule be adopted to take into account the various costs incurred by the new process outlined in this report. These new fees are shown in Appendix D.

CONCLUSION

This new approach will be a simpler process, less complicated to administer, and easier for the public to comprehend. It will also provide for more flexibility (if further community consultation is required), is less intrusive and more cost effective.

In recognition of the on-going changes facing the industry, including the upcoming reduction of types of licenses, it is proposed that this approach be implemented for the balance of 2000. Staff will report back to Council with an update on the implementation of this new process, early in 2001.

- - - - - -

APPENDIX A

PROPOSED LIQUOR LICENSING APPLICATION PROCESS

A. Pre-application

1. All applicants are strongly encouraged to meet with the Chief License Inspector or designate in order to discuss the nature of the proposed application and how these procedures may apply, prior to submitting an application.

B. Signage and Notice

1. This step applies to all applications. However, applications for Class A Lounge/Pub, Class B-2 Restaurant, Class C Cabaret, Class D Neighbourhood Pub, Class F Marine Pub, and Class G retail beer and wine stores will be required to undertake the requirements of Section C concurrently.

2. The applicant, at his expense, must erect on the site of the application a sign in size,shape and with lettering satisfactory to the Chief License Inspector or designate. The sign shall contain the following information: location, seating capacity and size of the proposed establishment, type of entertainment, hours of operation requested and allowed by regulation, public meeting date, and City Permits and Licenses Department and applicant contact phone numbers and addresses and websites.

3. The sign must be erected within fourteen days of the date the application is accepted by the Chief License Inspector and must remain in place until seven days after the Council decision in respect of the application has been made.

4. The City Permits and Licenses Department, at the applicant's expense, will give notice of the application on its website and by hand-delivering a Notice of Application to surrounding residents and businesses, as follows:

6. Upon expiration of the 21 day public response period in section B.4.a above, the Chief License Inspector will prepare a report to Council recommending that the application:

An application recommended for approval by the Chief License Inspector may include the following conditions: Time Limited Development Permit or legal agreement, and Good Neighbour Agreement, and such others as the Chief License Inspector or designate believe are appropriate having regarding to the circumstances.

An application will be recommended for further consultation where there appears to be considerable negative feedback or a need for further clarification in the affected neighbourhoods, if the applicant so requests or Council deems it appropriate for any other reason.

C. Additional Community Consultation

1. If an application has been referred for further community consultation, or is an application for a  Class A Lounge/Pub, Class B-2 Restaurant, Class C Cabaret, Class D Neighbourhood Pub, Class F Marine Pub and Class G retail beer and wine stores, the City Permits and Licenses Department will hold a public information meeting at which City staff and the applicant will be present, at the applicant's expense. The meeting will be advertised as required by the Chief License Inspector or designate at the expense of the applicant. The public information meeting will be held within one month of the decision of Council described in section B.6.

2. After the public meeting has been held, the Chief License Inspector will prepare a report to Council recommending that the application:

An application recommended for approval by the Chief License Inspector may include the following conditions: Time Limited Development Permit or legal agreement, and Good Neighbour Agreement, and such others as the Chief License Inspector or designate believe are appropriate having regard to the circumstances.

3. An application will be recommended for telephone survey in cases where there appears to be considerable negative feedback or a need for further clarification in the affected neighbourhoods about the proposed application, if the applicant so requests, or Council deems it appropriate for any other reason.

Applications for proposed establishments in designated entertainment areas, industrial areas, the Central Business District, where there is little adjacent residential development, or for an establishment with lesser impact than one currently approved (e.g. reduced hours, elimination of outdoor seating, etc.) would not normally be subject to the telephone survey requirement.

D. Telephone Survey

1. If an application has been referred for telephone survey (at the applicant's expense), the City Purchasing Department will submit to approved, pre-qualified vendors, a request to bid to conduct the survey. The City will specify the area from which the sample is to be taken, required number of completed calls, required level of sample accuracy, times during which telephoning may take place, languages in which the interviews are to be conducted, script and questions, and such other information as may be required under the circumstances. The successful bidder will be chosen on the basis of low bid.

2. Upon receipt from the survey company of a report on the results of the survey, the Chief License Inspector will prepare a report to Council either recommending that the application:

An application recommended for approval by the Chief License Inspector mayinclude the following conditions: Time Limited Development Permit or legal agreement, and Good Neighbour Agreement, and such others as the Chief License Inspector or designate believe are appropriate having regard to the circumstances.

APPENDIX B

CURRENT CITY OF VANCOUVER REFERENDUM GUIDELINES

Application: On August 1, 1989, Council adopted a resolution

Referendum Area: 2,000 ft. radius (1,000 ft. for applications to amend an existing license or for premises located in the Downtown core.

Notice of Referendum: · signage - 30 days notice

Public Information Meeting: To be held with the community a minimum of 30 days prior to the start of the referendum.

Conduct of Referendum: Referendum to be conducted by a private marketing research company, selected by and under the direction of the City Clerk. The applicant is to have no direct contact with the referendum company.

60% Vote in Favour: In all cases a referendum must receive a minimum 60% of the acceptable votes cast in favour, in order for the application to proceed.

Appeal: 30 day appeal period to commence immediately following the release of the referendum results.

Costs: All costs of the referendum and public information meeting are borne by the applicant. The actual cost of the last two referenda conducted in the City were over $30,000 each.

APPENDIX C

OTHER MUNICIPALITIES

MUNICIPALITY

LIQUOR LICENSING APPLICATIONS

PROCESS

Richmond

All applications requiring rezoning -have conducted 1 referendum in 5 years

· Same process as Vancouver
· notification within 1/2 mile radius

Surrey

neighbourhood pubs, hotel liquor licenses

· 1 evening public hearing with decision made that night
· notification to residents within 300 ft. radius; local newspaper advertising (2 consecutive issues)

Burnaby

· new Class C (cabaret) and Class D (neighbourhood pubs)

· new Class A hotel pubs and lounges
· patio additions

· neighbourhood survey (similar to Vancouver referendum); management firm hired to oversee market firm that conducts the survey - 60% approval required to proceed (not binding); notification area 1/3 of 1 mile radius)
· comprehensive development procedure

· mail-out requesting comments

West Vancouver

Classes C, D, and F

· applies for rezoning
· if referred by Council, independent survey of residents/businesses within 100m and within 100m-800m radius)
· if referred by Council, public hearing is held

North Vancouver

Mainly Class D (neighbourhood pub); haven't had cabaret or Class A-hotel
· if new application

· if changes to existing licenses

· rezoning process ( written notification within 50m radius) takes place including public hearing
· input gathered from community associations and police

Delta

  

· if rezoning is required, the full rezoning process takes place; Official Community Plan has assigned specific criteria in certain areas regarding liquor licensing applications which determines whether a public meeting is required - Councillors' attendance not mandatory
· written notification usually 50m radius
Note: if subject property is zoned for requested use and no structural changes requested, there is no public process; it is a business license issue

Victoria

· applications having neighbourhood impact, but otherwise meet current zoning
· applications requiring rezoning

· public hearing at applicant's expense
· notification radius is 500m to 1k; newspaper advertising
· decision made at hearing

· rezoning process is combined with liquor licensing
· if in downtown area (commercial/transient), notification within 22m radius, newspaper advertising and signage at site
Note: If applicant is not in downtown area or in less dense area; notification area may be expanded

APPENDIX D

Application Fees

Level I
· Application & Interview
· Staff Comments
· Report to Council

$750.00

$750.00

Level II
· Signage on Site
· Web site notice
· Prepare Notification
· Printing
· Delivery
· Review of Response
· Report to Council

$900.00

$1,650.00

Level III
· Public Meeting
- meeting logistics
- notice and advertising
- preparation of materials
- signage update
· Analyze Feedback
· Report to Council

$1,550.00

$3,200.00

Level IV
· Telephone Survey
- setting parameters
- prepare questions
- bid process
- analyze results
· Report to Council

$850.00+

$4,050.00

+ Telephone survey costs to be paid by applicant. This is estimated at an additional $5,000.00.

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