|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
October 4, 2004 | |
Author: |
Karen Hoese | |
Phone No.: |
871.6403 | |
RTS No.: |
04489 | |
CC File No.: |
1755 | |
Meeting Date: |
October 19, 2004 |
TO: |
Vancouver City Council |
FROM: |
Chief License Inspector in consultation with the Director of Finance |
SUBJECT: |
Year 2005 Business License Fee Amendments and Miscellaneous License By-law Amendments |
RECOMMENDATION
A. THAT with the exception of non-profit housing, artist live/work studio, health enhancement centre, gasoline service station, liquor retail store, venue, antique dealer and the charitable or non-profit categories detailed in Appendix A, Council approve an across-the-board increase in business license fees for Year 2005 of approximately 2.75 percent (when rounded) for an inflationary adjustment reflecting the estimated growth in City costs.B. THAT a new Non-Profit Housing license category be defined in section (2) and included in Schedule A of License By-law No. 4450 with a fee of $103 per property per annum.
C. THAT the license category of Artist Live/Work Studio be defined in section (2) and included in Schedule A of License By-law No. 4450 with a fee of $103 per annum.
D. THAT the license category of Health Enhancement Centre be added to Schedule A of License By-law No. 4450 with a fee of $193 per annum.
E. THAT the license category of Antique Dealer be defined in section (2) and included in Schedule A of License By-Law No. 4450 with a fee of $103 per annum;
AND FURTHER THAT the definition of Secondhand Dealer - Class 4 in section (2) of License By-Law No. 4450 be revised to exclude Antique Dealer.
F. THAT the license category of Liquor Store be revised to Liquor Retail Store in section (2), and added to Schedule A, of License By-law No. 4450 with a fee of $289 per annum.
G. THAT the license category of Lounge be revised to Club Lounge in section (2) of License By-law No. 4450.
H. THAT the license category of Home Craft be defined in section (2) of License By-law No. 4450.
I. THAT the following license categories in section (2) of License By-law No. 4450 be revised from:
a. `conventional station' to `gasoline service station - full serve'
b. `self serve station' to `gasoline service station - self serve'
FURTHER THAT the license category `gasoline service station - split island' be defined in section (2) of License By-law No. 4450;
FURTHER THAT the definition of gasoline service station in section (2) of License By-law No. 4450 be revised to include `gasoline service station - full serve', `gasoline service station - self serve', and `gasoline service station - split island' only;
FURTHER THAT conventional station and self serve station be removed from Schedule A of License By-law No. 4450;
AND FURTHER THAT Gasoline Service Station be added to Schedule A of License By-law No. 4450 with a fee of $154 per annum.
J. THAT the fee for the license category of Venue in Schedule A of License By-law No. 4450 be revised from a flat fee per business basis to $4.20 per seat per annum, with a minimum and maximum fee of $50 and $333, respectively.
K. THAT the Director of Legal Services be requested to prepare the necessary By-law amendments to the License By-law to be effective January 1, 2005.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of A through K.
COUNCIL POLICY
It is Council policy that fees and charges be established on the basis of the cost of providing the associated services, or at market level where the service is provided in a market environment.
It is Council policy that new or expanded service costs be fully offset by expenditure reductions or new revenues.
PURPOSE
The purpose of this report is to seek Council approval for Year 2005 business license fees. A fee increase of 2.75 percent fee reflecting inflationary costs is being recommended for all business license categories with the exception of non-profit-housing, artist live/work studio, health enhancement centre, gasoline service station, liquor retail store, venue, antique dealer and the charitable or non-profit categories in Appendix A. This report also recommends by-law changes to update a number of license categories and implement `house-keeping' changes.
BACKGROUND
Inflationary Adjustments
In the fall of every year, the License Office prepares an administrative report to Council proposing an across-the-board inflationary adjustment in business license fees which reflects the estimated growth in City costs for the following year. Although this adjustment is appropriate for most businesses, a higher fee increase may be required for certain businesses that incur higher inspection or administrative costs or possess fees that are no longer appropriate in comparison to other Lower Mainland municipalities.
License By-law Amendments
In addition to license fee adjustments, the administrative report also allows staff to propose other miscellaneous amendments to the License By-law necessary to address outdated regulations, increase the effectiveness of certain methods of conducting internal business and to incorporate some `housekeeping' adjustments.
DISCUSSION
Year 2005 Business License Fees
This report recommends that business license fees for year 2005 be increased by approximately 2.75 percent (when rounded) as an inflationary adjustment reflecting the estimated growth in City costs. This increase would apply to all fee categories with the exception of the following, which are discussed separately in this report: non-profit housing, artist live/work studio, health enhancement centre, gasoline service station, venue and antique dealer, as well as the charitable or non-profit categories detailed in Appendix A.
In the past, a number of charitable and non-profit license categories have been assessed fees that are well below an amount required to recover costs. These fees are listed in Appendix A. As in previous years, no fee increase is recommended for these licenses.
License By-law Amendments & Housekeeping Items
Non-Profit Housing
It is recommended that the business license category of Non-Profit Housing be added to License By-law No. 4450 and that it be defined similar to the following:
Housing designed for independent living that is owned by government, a non-profit or co-operative society, where rents are determined not by the market but by the residents' ability to pay.
The recommended 2005 license fee for non-profit housing is $103 per property per annum.
Non-profit housing was traditionally licensed as apartment houses, which resulted in much higher fees. However, as policy, over the past years staff have charged a minimum fee per site as opposed to by building. It is recommended that these fees be established in the License Bylaw.
Artist Live/Work Studio
It is recommended that the business license category of Artist Live/Work Studio be added to License By-law No. 4450 and that it be defined similar to the following:
The use of a premises for the production of dance, live music moving or still photography, creative writing, painting, drawing, pottery or sculpture, in association with a residential unit.
The recommended 2005 license fee for Artist Live/Work Studio is $103 per annum.
Health Enhancement Centre
This license category is defined in the License By-law as:
A building or premises used for the enhancement of health and well-being through one or more therapeutic touch techniques.
This category is, however, not listed in Schedule A. As such, it is recommended that it be added to Schedule A with a fee of $193 per annum.
Antique Dealer/Secondhand Dealer - Class 4
It is recommended that the business license category of Antique Dealer be added to Schedule A of License By-law No. 4450 and that it be defined in section (2) similar to the following:
Means a person who carries on the business of retailing or wholesaling articles, excluding spirits or wines, produced more than 50 years prior to the date of sale.
The recommended 2005 license fee for Antique Dealer is $103 per annum.
It is also recommended that the definition of Secondhand Dealer - Class 4 in section (2) be revised to exclude antique dealer similar to the following:
Means a person who carries on the business of retailing or wholesaling used property limited to used furniture, clothing, costume jewellery, knickknacks, footwear, and houseware items such as dishes, pots, pans, cooking utensil, and cutlery, but does not include antique dealer.
Liquor Retail Store
The license category `Liquor Store' is defined in the License By-law as:
A business that sells liquor at retail to customers for consumption off the premises.
At present, it is not included in Schedule A of the License By-law. It is recommended, for clarity, that the license category be renamed `Liquor Retail Store' and be added to Schedule A with a fee of $289 per annum.
Club Lounge
The license category `Lounge' is defined in the License By-law as:
A business, located in a club that sells alcoholic drinks including beer to customers for consumption on the premises
For clarity, it is recommended that this category be renamed `Club Lounge'.
Homecraft
This license category is listed in Schedule A with a fee of $52 per annum but it is not defined. As such, it is recommended that Homecraft be defined in section (2) of the License By-Law similar to the following:
A craft or occupation conducted as an accessory use subordinate to the principal residential use of a dwelling unit.
Gasoline Service Station
At present there are a number of license and zoning categories that refer to the retail sale of motor fuels and motor oils. A number of recommendations are made below to simplify the classification of this category.
In section (2) of the License By-law:
· Change Conventional Station to Gasoline Station - Full-serve
· Change Self-service Station to Gasoline Station - Self-serve
· Add Gasoline Station - Split Island and define similar to:
The use of premises for the retail sale of motor fuels and lubricants that are dispensed by the customer, and which includes a least one pump island where motor fuels sold by the station are dispensed by an attendant for the customer at all times the station is open for business, and where staff are available to provide other services such as checking tire pressure and fluid levels, cleaning windows and doing minor repairs.
· Revise the definition of Gasoline Service Station similar to:
Includes "Gasoline Station - Full-serve", "Gasoline Station - Self Serve", and "Gasoline Station - Split Island."
In Appendix A of the License By-law replace the license category of "Conventional Station" with "Gasoline Service Station" and delete "Self-Service Station". The recommended fee for Gasoline Service Station for Year 2005 is $154 per annum.
Venue
In 2002, the license fees for liquor licensed establishments, with the exception of venue, were changed from a flat-fee per business to a per seat basis. Venues include businesses such as theatres and sporting facilities including BC Place, GM Place, the PNE, the Orpheum, and the Queen Elizabeth, Stanley and Vogue theatres and are defined in the Licenses By-law as:
A business, located in a stadium, area, or theatre, that provides live sporting or entertainment events, and that sells alcoholic drinks to customers attending such events for consumption on the premises.
Since venues have similar attributes to other liquor-licensed establishments, it is recommended that the fee structure for the license category of `venue', in Schedule A of the License By-law, be revised from a flat fee per business basis to $4.20 per seat per annum, with a minimum fee of $50 and a maximum fee of $333.
FINANCIAL IMPLICATIONS
Inflationary Adjustment
The proposed inflation adjustment fee of 2.75 percent for Year 2005 business license fees, with the exception of non-profit housing, health enhancement, gas service station, venue, antique dealer and the charitable or non-profit categories detailed in Appendix A, will result in additional 2005 business license revenue of approximately $290,000.
CONCLUSION
Business license fees are adjusted annually to ensure full cost recovery of City administration and enforcement costs. This report recommends an across-the-board increase, with some exceptions, of 2.75 percent for Year 2005 to recover estimated inflationary cost increases resulting in the growth of City expenses.
Finally, this report recommends a number of amendments to the Licenses By-law to add or update license categories and fees, and to provide greater consistency between the License By-law and internal business practices.
- - - - -
APPENDIX A
PAGE 1 OF 1
Current Exceptions to Fee Increases
It is recommended that fees for the following license categories not be increased. Historically these fees have remained constant.
Blind Peddler |
$1 per annum |
Blind Retail Dealer |
$1 per annum |
C.N.I.B. Concession Stand |
$1 per annum |
Community Association or similar organization incorporated under the Societies Act Farmer's Market |
$2 per annum $10 per annum |
Junior Achievement of BC |
$10 per annum |
Soliciting for Charity |
$10 per annum |
* * * *
