|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
January 28, 2004 | |
Author: |
Karen Hoese | |
Phone No.: |
871-6403 | |
RTS No.: |
03922 | |
CC File No.: |
2610 | |
Meeting Date: |
February 12, 2004 |
TO: |
Standing Committee on City Services and Budgets |
FROM: |
Chief License Inspector |
SUBJECT: |
Review of Liquor Licensing Fee Schedule for Temporary Amendments to Hours of Service |
RECOMMENDATION
THAT Council receive this report for information.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services submits this report for Council's information.
COUNCIL POLICY
On January 15, 2004, Council approved an amendment to Schedule B "Miscellaneous Service Fees" Part 2 of the License Bylaw, to revise the fee schedule for municipal comments on temporary amendments to Provincial liquor licenses, to recover costs totalling $793,000, associated with policy development and monitoring by Police and License Department staff. In addition, Council requested that staff enter into discussions with bar owners and the Police to see if there is a solution more acceptable to all parties involved to cover the costs.
On November 20, 2003, Council adopted an interim hours of service policy, not to exceed a period of 12 months, permitting Liquor Primary establishments within the downtown to extend their hours of liquor service on Friday and Saturday nights up to 4 am, and establishments city-wide to extend their hours of service on Sunday nights to match their permanent hours of service on Friday and Saturday nights. Council also directed staff to report back with a revised fee structure for cost recovery.
PURPOSE
To report back to Council with the outcomes of the discussions between bar owners and Police regarding options for reducing the City costs associated with the later hours of liquor service and the resulting temporary liquor licensing fees to recover those costs.
BACKGROUND
On November 20, 2003 Council adopted an interim policy for extended hours of service for Liquor Primary establishments in the downtown, for a period of time not to exceed 12 months. The interim hours of service policy, effective December 4, 2003, applies to extended hours of liquor service on Friday and Saturday nights up to 4:00 am, and on Sunday nights, to match regular hours of operation on weekend nights.
In addition, Council directed staff to report back with a fee schedule to recover costs associated with the extended hours, including continued Police and License Office monitoring and development of a Comprehensive Hours of Service policy. The associated costs, detailed below, total $793,000.
Policy Development |
46,000 | ||
License Office Monitoring |
12,000 | ||
Police Monitoring |
735,000 | ||
TOTAL |
793,000 | ||
On January 15, 2004, Council approved a revised fee schedule, to be effective February 1, 2004. To determine an equitable distribution of the above costs, a graduated fee schedule was developed with calculations based on a closing hour, per night, per seat basis and are summarized below.
|
Requested Closing Time |
Temporary Fee Cost/Night/Seat |
3:00:01 to 4:00 am |
$0.75 / seat |
2:00:01 to 3:00 am |
$0.50 / seat |
2:00 am and earlier |
$0.30 / seat |
In response to significant concerns expressed by bar owners and Barwatch representatives regarding the magnitude of the City costs and the resulting fees to be applied to later openings, Council directed staff to enter into discussions with bar owners and the Police to try to identify an alternative solution to cover the costs. Further, Council direction indicated that no portion of the costs was to be recovered through general revenues or contingency funds. This report provides the outcomes of the meetings between Licensing staff, bar owners and Police.
DISCUSSION
Staff met with representatives from Barwatch (a coalition of 21 bar and nightclub owners most of which participated in the later closing hours trial period) and the Police Department to consider options for reducing City costs associated with the later hours of liquor service during the interim policy period to reduce the resulting fees to participating establishments. Since the fee was to be established on a cost-recovery basis and alternative City funds were not available to offset costs, the discussion was focussed on reducing the previously identified costs, particularly those relating to policing.
It was acknowledged by Barwatch that some of the business practices of Liquor Primary establishments have the potential to increase the need for Police resources. To reduce these needs, Barwatch indicated that they were willing to commit to the following actions:
· Hiring four security staff for the Granville Street area to assist with line-up control, help calm disruptive behaviour especially at closing time, provide extra "eyes" on the street for Police, and generally act as ambassadors in the area.
· Providing a stronger focus on reducing over-service of liquor by eliminating "deep discount" drink nights on nights with extended hours within their membership.
· Supporting installation of more smoking rooms in liquor establishments to discourage patrons from smoking outside of the establishment on the street and to limit in/out traffic.
· Providing increased training of bar staff with regard to recognizing over-service and problem patrons.
· Continuing to work on increasing patron safety by establishing a public identification system and increasing communication between establishments, as well as supporting use of metal detectors.
At present Police feel that the projected levels of policing cannot be reduced, nor are changes to shifting to reduce overtime costs possible in the short-term. However, if changes are implemented by bar owners that ultimately reduce policing requirements, the Police Department will adjust policing levels, thereby reducing costs.
Police are additionally looking at a number of longer term initiatives to respond to the later hours of liquor service that may ultimately reduce policing costs, including:
· Providing more consistency in dealing with the bars through use of regular police officers that are more familiar with the bars.
· Improving traffic management on Granville Street.
· Continuing to pursue an anti-fighting bylaw.
· Examining shifting models.
To reduce the immediate burden on bar owners faced with large monthly fees, the option of allowing establishments to amortize payment was considered. However, industry members indicated a lack of support for such a plan. In addition, a brief staff review indicated a number of complications, ranging from establishing appropriate legal mechanisms to logistical problems involving implementation. Instead, to provide some flexibility for establishments, staff have agreed, in the first month, to allow payment to be made in two instalments, and after that time, to allow establishments to apply for up to three months approval, but only pay on a monthly basis.
All parties have committed to meet on a monthly basis for updates and to review progress. Review of policing requirements will take place in approximately 90 days. If the costs are less than initial estimates, or our revenues are higher than expected, the fee schedule can be amended at that time to reflect the true costs.
CONCLUSION
Council directed staff to enter into discussions with bar owners and the Police to see if there is a solution more acceptable to all parties involved to cover the associated City costs. Although no immediate solutions were identified, directions that may reduce Policing requirements were identified. Policing requirements will be reviewed in approximately 90 days, and thereafter on a regular basis, to determine if any cost reductions are viable. If costs are reduced, staff will report back to Council with options to reduce the corresponding fees for bar owners.
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