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CITY OF VANCOUVER POLICY REPORT
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Date: |
October 7, 2004 | |
Author: |
Karen Hoese/Guy Gusdal | |
Phone No.: |
604.871.6403/604.871.6461 | |
RTS No.: |
04418 | |
CC File No.: |
2611 | |
Meeting Date: |
November 18, 2004 |
TO: |
Standing Committee on Planning and Environment |
FROM: |
Chief License Inspector in consultation with Legal Services |
SUBJECT: |
Liquor Licensing Hours of Service Policy Recommendations |
RECOMMENDATION
A. THAT Council approve the Standard Hours of Liquor Service by Area Policy for all liquor primary establishments, as outlined in this report and in Appendix A, for the purpose of recommending hours of service to the general manager under the Liquor Control and Licensing Act.
B. THAT Council authorize the Chief License Inspector and Director of Legal Services to request Cabinet to add "liquor primary establishment" to its Classes of Business Premises Regulation No. 33/99.
FURTHER THAT, if Cabinet amends the Classes of Business Premises Regulation to prescribe "liquor primary establishments", Council request the Chief License Inspector to report back on incorporating the Standard Hours of Liquor Service by Area Policy into the License By-law.
C. THAT Council request the Chief License Inspector to report back on a strategy to implement impact reduction measures with respect to liquor licensed establishments and hours of liquor service.
D. THAT Council authorize the Chief License Inspector and Director of Legal Services to request the Province to amend the Vancouver Charter to give Council an effective and efficient means to both implement and roll back extended hours of liquor service, as outlined in this report and in Appendix A, on a case by case basis.
E. THAT Council support in principle the Extended Hours of Liquor Service Policy up to 3 a.m. with further limited extensions up to 4 a.m. for liquor primary establishments, as outlined in this report and in Appendix A, subject to:
i. the City obtaining the necessary authority under the Vancouver Charter to ensure an effective and efficient means to implement or roll back the extended hours of liquor service on a case by case basis, and
ii. the Chief License Inspector reporting back on:
(a) the effectiveness and cost of the impact reduction measures one year after implementation, and
(b) incorporating the Extended Hours of Liquor Service Policy into the License By-law.
FURTHER THAT Council request the Chief License Inspector to approach the Liquor Control and Licensing Branch to continue the current process for temporary approvals under the Interim Hours of Service Policy for extended hours, and that the Chief License Inspector continue the interim policy until Council has approved an alternative means of implementation.
OR
F. THAT Council does not support liquor service beyond 2 a.m. but does support in principle the Extended Hours of Liquor Service Policy up to 2 a.m. for liquor primary establishments, as outlined in this report and in Appendix A, subject to:
i. the City obtaining the necessary authority under the Vancouver Charter to ensure an effective and efficient means to implement or roll back the extended hours of liquor service on a case by case basis, and
ii. the Chief License Inspector reporting back on:
(a) the effectiveness and cost of the impact reduction measures one year after implementation, and
(b) incorporating the Extended Hours of Liquor Service Policy into the License By-law except that the by-law will not allow extensions beyond 2 a.m.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of A, B, C, D and submits the choice of E or F.
COUNCIL POLICY
On November 6, 1990, in the Downtown Eastside and Gastown areas, Council designated that no new liquor licences or amendments to existing licences to increase seating capacity or extend hours of sale (except Restaurant Class 1-B licence) be permitted.
On December 3, 1991, for Vancouver's downtown area, Council approved the Central Area Plan advocating the creation of an "Alive Downtown" with a central area that has a mix of activities, with quieter neighbourhoods where people live, close to more active areas where people shop and play as well as work.
On May 2, 1992, in Downtown South, Council designated that no new liquor licences or amendments to existing liquor licences to increase seating capacity or extend hours of sale (except for restaurant Class 1-B licence) be permitted.
On June 19, 1997, Council designated the 700 to 900 blocks of Granville Street as the Theatre Row Entertainment District, the 1000 block as a transition area, and the 1100 to 1200 blocks as a local shopping focus for the surrounding community. This policy requires that measures be adopted to prevent new housing from being built in Theatre Row, to ensure that nearby housing is designed to accommodate anticipated impacts and to inform potential owners and tenants about the entertainment district.
On January 26, 1999 Council passed a resolution supporting the idea of earlier opening times for cabarets.
On May 18, 2000, Council approved the West End liquor licensing policy, including Davie Village, Denman Village, and Robson Village/Burrard Street, providing for a variety of neighbourhood-oriented pubs and other licensed outlets, to be operated so that impacts on the liveability of the neighbourhood are minimized.
On September 13, 2001, for the Central Business District, Council approved a liquor policy that provided direction to pursue a greater variety of entertainment opportunities for existing and proposed liquor licence establishments (e.g. hours of operation, establishment size).
On April 8, 2003, Council directed staff to consider, on a trial basis, extensions to hours of operation of the following applications: Liquor Primary applications, to the same hours of operation as on Friday and Saturday nights, on Sunday nights; and applications beyond 2 a.m. within defined geographic areas and to accommodate special events.
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 a.m., 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.
On January 15, 2004 Council approved an amendment to the License By-law fee schedule to recover costs associated with policy development and monitoring of extended hours of liquor service by Police and License Department staff.
On May 6, 2004 Council revised the Interim Hours of Service Policy to limit the hours of liquor service in the downtown area to 3 a.m. and to allow extended hours of liquor service on selected festival nights for Liquor Primary establishments in the downtown area on weekdays to 3 a.m. and weekends to 4 a.m..
Liquor related applications for the rest of the City are reviewed on a case-by-case basis, based on neighbourhood opinion expressed through various forms of neighbourhood consultation.
SUMMARY
Provincial liquor licensing reforms require a new City response to Liquor Primary applications for licences and licence amendments. This report recommends a new model for regulating hours of liquor service for Liquor Primary establishments by "area" and through a two-tiered licensing system. The model will consist of three components:
1. Standard Hours of Liquor Service by Area Policy,
2. Two tiered licensing system with a secondary license for extended hours of liquor service", and
3. impact reduction strategies including sub-area policies.
Staff's opinion is that implementing all three components of the model will provide the best possible long term solution for the various stakeholders, including industry, patrons, residents, tourists, and enforcement agencies.
However, Council does not presently have the necessary statutory authority to implement the first two components of the model. Accordingly, Council may approve those components only in principle while it seeks the necessary authority from the Province. The third component, though, does not require further authority. As a result, Council may pursue impact reduction strategies immediately.
On October 5, 2004, staff gave Council an information report on the liquor license review. The report outlined many of the issues associated with liquor establishments experienced by the city and by other cities around the world. This information formed the foundation upon which staff has built the proposed model. It also led to staff's strong opinion that the only effective way to allow hours of liquor service beyond the standard hours policy is through a two-tiered licensing system. If the Province will not give the City authority to implement such a system, or an alternative that provides the same level of effectiveness and efficiency for the city, then staff recommends that Council limit hours of liquor service to the "Standard Hours of Liquor Service by Area Policy", being the first component of the proposed model, and not allow any extended hours.
The Director of Legal Services has advised that the only way to implement Standard Hours of Liquor Service by Area Policy is for:
(a) Cabinet to add "liquor primary establishment" to its Classes of Business Premises Regulation; and
(b) Council to enact a by-law creating business premises regulation areas for Liquor Primary establishments, and establishing standard hours of liquor service that differ according to area.
However, implementing two tiered license system for extended hours of liquor service", as outlined in this report, is more complex, and requires more investigation. The Director of Legal Services has advised that obtaining authority for Council to regulate a two-tiered license system will likely be extremely difficult, and will:
(a) require the Province to amend the Vancouver Charter to empower Council to implement the two-tiered license system, and to give considerable discretion to Council or the Chief License Inspector to cancel a secondary license for extended hours on a case by case basis;
(b) require the Province to amend the Liquor Control Act and/or Regulations to allow Council control over extended hours; and
(c) even if the Province is co-operative, be unlikely to occur until at least the Spring of 2006.
Recommendations A, B, C and D authorize staff to:
· implement the Standard Hours of Liquor Service by Area as a policy only to guide staff in assessing applications for new liquor primary establishments or for amendments to existing establishments wishing to change their hours of operation;
· ask the Province for the necessary authority to implement the Standard Hours of Liquor Service by Area Policy as a by-law;
· upon obtaining such authority, report back to Council to recommend enactment of an amendment to the License By-law to incorporate the Standard Hours of Liquor Service by Area Policy, and to request direction on how to implement them;
· review impact reduction measures such as licensed security, metal detectors, and sound equipment regulators, and report back to Council with a strategy for implementing certain measures by by-law or otherwise;
· ask the Province for the necessary authority in the Vancouver Charter to implement a two-tiered licensing system with a secondary license for extended hours; and
· report back to Council if the Province will not amend the Vancouver Charter to authorize a two-tiered licensing system.
Recommendation E, which allows extended hours of liquor service beyond 2 a.m. in specific circumstances, or Recommendation F, which caps the maximum hours of liquor service at 2 a.m., results from the uncertainty about the City's ability to make a two-tier license system a reality, as well as the pros and cons of the interim policy extending hours of liquor service up to 3 a.m. These issues raise the question of whether Council wishes to continue permitting liquor service beyond 2 a.m. As a result, staff is giving Council the choice between Recommendation E or Recommendation F.
Approval of Recommendation E will also provide staff the direction necessary to seek to maintain the current process of extended hours of liquor service until Council implements a workable long-term solution.
PURPOSE
This report requests that Council endorse an hours of liquor service policy model to regulate hours of liquor service city-wide, and by specific area, through a two-tiered licensing structure and through impact reduction strategies, provided that the City obtains the necessary authority from Cabinet and the Province. Staff also seeks Council direction with respect to the continuation of liquor service beyond 2 a.m., and discusses an implementation strategy for the policy model.
BACKGROUND
In response to Provincial liquor licensing reforms, the City has been reviewing its approach to regulating hours of liquor service. Through a trial period, the city explored longer hours of liquor service and in November 2003, Council requested that staff develop a comprehensive hours of liquor service policy for Liquor Primary establishments.
The approach taken in developing the hours of liquor service policy was strongly influenced by the various parts of the process including research results, feedback from stakeholders, the City/Provincial regulatory relationship, and the City's experiences to date with longer hours. Staff summarizes the review process in a report titled Liquor Licensing Hours of Service Policy Review, dated September 21, 2004 and presented to Council on October 5, 2004.
From the policy review staff concluded that there are identifiable benefits to extended hours of liquor service and there are also problems associated with it. Staff thought that some of these problems could be addressed through improvements to the management of liquor licensed establishments, and to enforcement and regulatory practices. However, staff also recognized that despite implementation of impact reduction measures, there will continue to be problems due to conflicts between land uses, behavioral problems of individuals, and long-term health and social issues.
Current policing concerns, particularly on downtown Granville Street, are not solely related to the extended hours of liquor service. Changes to the provincial regulations have added a significant number of seats throughout the city without local government input. Downtown Granville Street has been difficult to police, primarily due to the concentration of establishments and seats, as well as the popularity of the establishments that opened over the past 12 to 24 months. Finally, 2 outstanding approvals for new Liquor Primary establishments in the Granville Street Entertainment District could be operating within the next 24 months.
DISCUSSION
Policy Model
Staff explored various approaches for a new model for liquor licensing, including liquor licensing categories, base hours of operation and differing hours of operation in specific neighbourhoods or areas within the city. Staff concluded that the most viable option for regulating hours of liquor service was a hybrid of these.
The recommended approach establishes three types of areas within the city and establishes base hours for each of the defined areas. Using this approach, the model responds to the unique characteristics of the city's neighbourhoods, and also reflects existing land-use zoning, established policy and identified future directions. The proposed model, which also includes recommended hours of liquor service, impact reduction strategies and sub-area guidelines, represents a new system for regulating hours of liquor service throughout the City.
The proposed model responds to the Provincial guidelines permitting extended hours of liquor service, through a two-tiered licensing approach. Subject to obtaining the necessary authority from Cabinet and the Province, the primary business license will define the "standard hours of liquor service" for Liquor Primary establishments, and a second license (perhaps called an Extended Hours License) will provide opportunities, on a case by case basis, for "extended hours of liquor service" beyond the standard hours of liquor service.
The purpose of introducing a two tiered licensing system is to ensure local government control over the hours of operation for Liquor Primary establishments. The hours of operation, particularly closing times, are generally the main facet of a bar's operation which has the greatest continual negative impact on a surrounding community. Local government control will ensure that staff and Council can react more effectively and efficiently to changes in a specific establishment's operation.
The following components of the model are discussed below in more detail:
· Area definitions
· Two Tier Licensing System: "Standard Hours License" and "Extended Hours License"
· Hours of Liquor Service: Opening and Closing Times
· Impact Reduction Strategies
· Sub-Area Guidelines
Area definitions
The recommended approach defines three types of areas within the city based on factors such as level of commercial intensity and mix of uses: Primarily Commercial/Industrial, Primarily Mixed-Use and Primarily Residential. Hours of operation for weekends and weekdays are determined for each of the defined areas, and downtown and non-downtown areas are considered separately. It should be noted that this approach applies only to zones that either permit liquor licensed uses or to uses that are existing non-conforming within an area; it does not alter existing zoning in any way.
The proposed categories are shown in Appendix A on Map 1 (Downtown Vancouver) and Map 2 (City of Vancouver) and described below. Specific neighbourhoods in each category are detailed in Appendix A in Table 1 located after Map 2 (City of Vancouver) or the table located on Page 8.
Primarily Commercial or Primarily Industrial Areas
This category includes areas that have little or no residential component, areas that have been identified through policy as entertainment areas or to provide for entertainment uses, and/or where there may be a greater expectation for noise and other impacts related to entertainment areas.
Primarily Mixed-Use Areas
This category includes mixed-use areas in the downtown and along arterial streets outside the downtown. These are areas comprised of a variety of uses, including commercial, entertainment and residential uses, and are considered higher activity zones within the city.
It was recognized that due to other existing City policy, the Downtown Eastside would have to be considered separately from other mixed-use areas. In this case, it is treated similarly to non-downtown mixed-use areas, without the option of longer term extended hours.
Primarily Residential Areas
This category applies to any commercial areas permitting Liquor Primary uses not included in the preceding categories. Although these areas permit a mix of uses, they tend to be lower activity zones.
Licensing System
A two-tiered licensing model which provides for "standard" and "extended" hours of liquor service is recommended. As noted above this will result in more local government control to ensure negative changes in a specific establishment's operation can be addressed effectively and efficiently by staff and/or Council. Subject to obtaining the necessary statutory authority, the hours established for the licenses would be based on new City policies or regulations (if determined by By-law) identifying acceptable hours of liquor service for various areas of the City.
Standard Hours of Liquor Service tied to the Primary Business License
The primary business license will establish the standard hours of liquor service for each area. This license would permit hours of liquor service ranging from 11 a.m. up to 2 a.m., depending on the area. All Liquor Primary establishments within an area would have the same "standard" hours of liquor service. Until Council has the Statutory authority in the Vancouver Charter to implement this two tiered license system, Council would recommend these standard hours to the general manager with respect to specific applications under the Liquor Control and Licensing Act.
Extended Hours of Liquor Service tied to a Secondary License
The "second tier" of the proposed model, would be a separate business license and would only be used in conjunction with the primary business license to provide the opportunity for earlier or later hours of liquor service. Several variations of the secondary license for extended hours have been identified and could be used either independently or combined as required, providing the greatest amount of flexibility for operators:
· Earlier Hours Extension - Issued as an annual business license, this would permit liquor service to begin as early as 9 a.m. where permitted.
· Later Hours Extension - Issued as an annual business license, this would permit liquor service up to 3 a.m., where permitted.
· Special Events Extension - Issued for specific dates only, i.e. festival dates or special events, with possible hours of liquor service ranging between 9 a.m. and 4 a.m..
Hours of Liquor Service
The proposed policy model for hours of liquor service therefore provides recommendations for opening and closing times, on weekends and weekdays, which are summarized by area in Table 1 below. The two tier model effectively proposes two separate hours of liquor service policy; Standard Hours of Liquor Service by Area and Extended Hours of Liquor Service.
It is also recommended that the tolerance period after the conclusion of liquor service be extended from 30 minutes to one hour. This will allow establishments to remain open for up to one hour after liquor service ceases, to provide non-alcoholic beverages and food service, if desired.
Table 1: Summary of Proposed Hours of Liquor Service
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Standard Hours |
Extended Hours |
Special Events
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11am-2am
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9am-3am
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9am-4am
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Primarily Mixed-Use
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11am-2am Weekends
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9am-3am Weekends
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9am-4am Weekends
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Primarily Residential · Downtown South
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11am-1 a.m. Weekends
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9am-2am
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9am-3am
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NON-DOWNTOWN AREAS |
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Primarily Commercial / Industrial For example: SW Marine Drive |
11am-2am
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9am-3am
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9am-3am
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Primarily Mixed-Use For example: Parts of West Broadway, West 4th Avenue, Main Street, Commercial Drive |
11am-1am Weekends
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9am-2am Weekends
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9am-3am Weekends
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Downtown Eastside (DEOD) |
11am-1am Weekends
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n/a |
9am-2am
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Primarily Residential |
11am-1am Weekends
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9am-2am Weekends
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9am-2am Weekends
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|
*Weekends = Friday and Saturday Weekdays = Sunday through Thursday | |||
Opening Times
Under the new Provincial liquor licensing regulations, establishments are permitted to open at 9 a.m., subject to municipal approval. To date, earlier openings have generally been supported, with approvals issued on a case-by-case basis. Most applications for earlier openings have been from cabarets, previously not permitted to open until 7 p.m., to allow earlier food service, to shift focus of the establishment to a more neighbourhood pub environment or to coincide with special events. The earlier openings have not been problematic and help meet other City objectives by providing more street-front activity during the day and reducing "dead-zones" on street frontages.
However, there are some concerns about increasing the hours of access to liquor. Allowing opening times as early as 9 a.m. could potentially provide an establishment, such as a cabaret with a current opening time of 7 p.m., with up to ten additional hours of liquor service per day. The number of increased hours of liquor service resulting from earlier opening times is shown in Table 2. However, based on past applications, very few establishments have been interested in early morning openings and this is unlikely to become an issue.
Table 2: Potential increased hours of liquor service resulting from earlier openings
Standard Hours |
Extended Hours | |||
Additional
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Additional
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Additional
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Additional
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Average per establishment per week |
7.0 |
2.6 |
8.5 |
3.6 |
The proposed policy for hours of liquor service recommends the following opening times:
· For the standard hours of liquor service, a city-wide opening time of 11 a.m. for both weekends and weekdays would be established.
· For a secondary license allowing temporary extensions to hours of liquor service, an opening time of 9 a.m. would be considered for weekends and weekdays, both for the annual and special events extensions. This would allow on-going monitoring of earlier hours to identify impacts.
Closing Times
The new Provincial liquor licensing regulations permits establishments to serve liquor up to 4 a.m., subject to municipal approval.
During the trial period in the downtown, establishments were permitted to apply for liquor service to 4 a.m. on Friday and Saturday nights, nights preceding statutory holidays and on limited festival nights. Although the experiment with 4 a.m. was positive for the industry and its patrons, in June 2004, with the exception of some weekend festival nights, the hours of liquor service were rolled back to 3 a.m. to reduce impacts associated with the later openings.
Liquor Service up to 3 a.m. with limited 4 a.m. closings (Recommendation E)
As with earlier opening hours, there are concerns about increasing the hours of access to liquor. A closing time of 3 a.m. could provide an establishment with between one and four additional hours of liquor service per day depending on their current closing time. The number of increased hours of liquor service resulting from later closing times is shown in Table 3. While experience demonstrates that some establishments may not take advantage of the full range of hours available, it is difficult for staff to accurately estimate how many establishments will take advantage of the new hours. For example, during the trial and interim policy periods, only about 50 of the 120 eligible establishments used the extended hours.
Table 3: Potential increased hours of liquor service resulting from maximum closing times
Standard Hours |
Extended Hours | |||
Additional
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Additional
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Additional
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Additional
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Average per establishment per week |
2.2 |
1.1 |
2.3 |
1.6 |
The proposed policy for hours of liquor service generally recommends the following:
· For the Standard Hours of Liquor Service by Area Policy, closing times ranging between 1 a.m. and 2 a.m. weekends and between midnight and 2 a.m. weekdays, depending on the area.
· For a secondary license allowing temporary extensions to hours of liquor service, closing times of up to 3 a.m. on an annual basis and up to 4 a.m. only for limited festival days or special events.
Liquor Service up to 2 a.m. (Recommendation F)
Setting the hours of liquor service policy to a maximum of 2 a.m. will not result in a return to the status quo which existed prior to the trial period that began in July 2003. The Standard Hours of Liquor Service policy would result in approximately 57 and 48 percent of licensees eligible for later closing times on weekdays and weekends respectively. The increases in hours of liquor service at closing time range from 1 to 3 hours per day.
The majority of the problems associated with patron migration to the downtown peninsula from outlying liquor establishments and municipalities should be substantially reduced. However, policing issues are likely to remain, although they may be reduced. The issues on downtown Granville Street are more a factor of the concentration of establishments, the high number of liquor seats and the popularity of the establishments on the strip, than the extended liquor service closing time. Also, the increase in violence, particularly gun related violence, over the past few years must be addressed regardless of the hours of operation. Policing Liquor Primary establishments has become more difficult, however the current shifting schedules are better suited to a 2 a.m. closing time which helps to simplify the policing issues.
Liquor Service up to 4 a.m.
Liquor service to 4 a.m. is only recommended for limited special events extensions. However, the possibility of considering 4 a.m. in the future remains an option, particularly if other aspects of the licensing system, such as the impact reduction measures, are in place and working smoothly. Finally, if authority to implement the policy model's two-tier license system is granted by the province and Council approves the necessary by-law then future revisions to the permitted hours of liquor service for a specific area or city-wide can be accommodated through simple by-law amendments.
Impact Reduction Strategies
A key component of the new model is the Impact Reduction Strategies, which provide a unique opportunity for the City to raise the minimum standard for all or for specific classes of businesses. Monitoring would ensure that specific standards are implemented and adhered to by the operator. Where standards are not being met typical enforcement action can be used, including referrals to Council for business license revocation.
The impact reduction strategies discussed below are based on the presumption that there will be some degree of expansion to hours of liquor service. However, as noted in the "Backgrounder on ALCOHOL POLICY" by Art Steinmann (Addiction Prevention Specialist, Principle, Art Steinmann and Associates) included as Appendix B in the information report titled Liquor Licensing Hours of Service Policy Review, dated September 21, 2004 and presented to Council on October 5, 2004, the two most effective and most cost-effective measures which are within City control are limits on outlet density and limits on hours of service.
Specified impact reduction measures would be a requirement of either the primary business license or the secondary business license. Each is discussed in more detail below. It should be noted that establishments that do not meet the new standards would be required to take steps to bring their establishments into compliance. As such, implementing many of the strategies will have some level of cost to the industry.
The impact reduction strategies discussed below could be implemented independently from the proposed hours of liquor service policy. There is probably some merit to implementing strategies even in the absence of a new hours of liquor service policy. However, due to the likely costs to the operators and the need to liaise with the industry to define acceptable industry standards, staff suggest that implementation of the impact reduction strategies should be combined with the implementation of the hours of liquor service policy. This would allow the operators to off-set the costs of the new impact reduction strategies against the likely benefits of the hours of liquor service policy.
Standard Hours of Liquor Service by Area (Primary Business License)
The impact reduction measures required under the primary business license would apply to all Liquor Primary operators and represent the minimum standards required by the City. One of the prime objectives of this is to establish consistent standards for all Liquor Primary establishments and ensure that impacts are minimized. Now that the LCLB treats all establishments equally, it is important to ensure that they are also required to meet similar standards.
These impact reduction measures would fall primarily into the category of management or operational procedures, with the aim of reducing neighbourhood impacts. Such measures might include:
· Approved procedures for entering/exiting premises to better deal with crowd control and safety issues, including line-up and other crowd control measures, and procedures for smoking areas and re-entry onto the premises.
· Safety requirements to reduce the possibility of patrons bringing weapons into the premises, including the requirement of metal detectors, procedures to ensure all patrons are appropriately checked, and security cameras.
· Increased safety measures such as private security or ID scanners.
· Certification for door and bar staff in safety and conflict resolution procedures (i.e Provincially licensed as security guards).
· A Good Neighbour Plan to outline a reasonable code of conduct and avenues for conflict resolution and communication to address neighbourhood concerns.
· Acoustic mitigations to reduce noise from inside an establishment, such as use of a bass modulator.
These measures could either be implemented as a Council policy or, when city authority permits, as By-law regulations. As such, non-compliance would result in staff taking the appropriate enforcement action.
Staff will report back to Council on specific impact reduction measures to be associated with the Standard Hours of Liquor Service by Area Policy. Implementation of the Standard Hours of Liquor Service by Area Policy would be simplified if the majority of these impact reduction measures could be implemented on a broad city-wide basis, either through By-law regulation or enforceable Council Policy.
Extended Hours of Liquor Service (Secondary or Extended Hours License)
Additional impact reduction measures would apply to Liquor Primary operators applying for an secondary business license to allow extended hours of liquor service for earlier openings or later closings on an annual/semi-annual basis, or for special events, and would vary depending on the area and requested hours of liquor service.
The impact reduction measures for extended hours of liquor service would fall primarily into two categories: premise design and management procedures. The key objectives would be to further reduce neighbourhood impacts and improve safety. These measures generally require more of an investment and/or structural alterations than the previous level of impact reduction strategies. However, the probable benefits to the operator of the temporary extended closing times are likely to be significantly more than the benefits possible from the changes to the Standard Hours of Liquor Service by Area Policy. As such, it is reasonable to tie the more costly impact reduction strategies to the financially beneficial extended closing times. Also, the extended closing times are typically associated with the larger neighbourhood issues which normally require more resources to resolve. Such measures might include the following:
· Installation of kitchen facilities to allow food service for earlier openings.
· Acoustic mitigations that require structural alterations.
· Installation of an internal smoking room.
· Creation of an internal line-up area.
As above, staff will report back to Council on the details of impact reduction measures to be associated with the extended hours of liquor service, if the City receives the authority from the Province to implement a two-tier license system.
Sub-Area Guidelines
While the proposed approach establishes hours and related impact reduction strategies for the three categories of commercial areas, in some cases sub-area guidelines will be required to provide further direction with regard to liquor licensing. These sub-area guidelines might include details such as maximum density of liquor establishments, spacing, general location and size of establishments.
Detailed policies have been developed for a number of areas, including the CBD, the Granville Street Entertainment District and the West End, and to a lesser extent Yaletown, Gastown and the Downtown Eastside. This policy would supersede these policies with regard to hours of liquor service.
City Initiatives for Impact Reduction
During the interim policy period, some impact reduction measures have been pursued by City staff. Some of these were detailed in the report Liquor Licensing Hours of Service Policy Review presented to Council on October 5, 2004, including reduction of street litter and improved traffic circulation on Granville Street. In addition, two other initiatives to help resolve some of the issues associated with liquor licensed establishments:
· Sidewalk Queuing Guidelines for Nightclubs/Cabarets
Staff are trying to resolve some of the issues related to sidewalk congestion. Discussions between City staff and industry have resulted in the development of Sidewalk Queuing Guidelines for Nightclubs/Cabarets (attached as Appendix B) and a pilot project in the 900 block Granville Street to paint lines indicating queuing areas and stanchion placement that comply with the above guidelines.
· Anti-Fighting By-law
The Anti-Fighting By-law was implemented in early summer. Although Police have started ticketing people, it is too early to see any results or draw any conclusions on its effectiveness.
These types of initiatives play an important role in reducing issues associated with liquor licensed establishments and creating a more inviting environment for all visitors to the area. As part of the proposed liquor licensing approach, there are a number of objectives that the City can pursue to improve regulatory and enforcement practices, and to reduce impacts of liquor licensed establishments including:
· Regulatory strategies to improve the liquor licensing system to better deal with problems associated with liquor licensing, and to allow the City to respond to issues in an expedient manner.
· Enforcement strategies to ensure consistent and effective enforcement.
· Collaborative strategies between Community, Licensees & Police to improve communication between local businesses, residents, Police and City staff.
· Transportation strategies to encourage safe transit alternatives for patrons and employees leaving the bars, to reduce traffic congestion and noise, and to disperse patrons quickly.
· Public Space Strategies to ensure public spaces are safe and comfortable, and ensure that safe exiting of establishments is maintained.
· Public Education Strategies to improve awareness of impacts of alcohol-affected behaviour.
It is recommended that if Council supports these future directions for City impact reduction strategies, that staff be directed to report back with further details, such as implementation, consultation, and potential sources of funding.
IMPLEMENTATION
Standard Hours of Liquor Service by Area Policy
Legal Services advised that the only way to establish different hours of business in various areas of the City is through the creation of a new business premises regulation of hours by-law requirements, which will likely be by way of an amendment to the License By-law. However, as the LCLB regulates hours of liquor service, the City does not currently have Charter authority to regulate the hours of operation of liquor establishments. Council would need to direct staff to approach Cabinet to approve a Cabinet regulation prescribing Liquor Primary establishment as a business under Cabinet's Classes of Business Premises Regulation No. 33/99 to obtain the required authority (RECOMMENDATION B of this report).
There are a number of positive outcomes associated with implementing the policy for hours of liquor service in this manner:
· It results in all Liquor Primary establishments being treated equally within each area with regard to hours of liquor service;
· It provides the potential to eliminate "grandfathering", as the business premises regulation of hours by-law requirements will set the standard hours in each area; and,
· Once the system is implemented it will be easier for staff to administer and will reduce "red tape" for the industry.
There are also a few negative aspects to using this approach:
· It will result in some loss of flexibility, should there be a desire to vary any hours within an area. Once the By-law is enacted, any changes to the maximum hours of service in an area would require a By-law amendment; and
· The approach will take longer to implement. It is estimated that the enactment of the Cabinet regulation and the associated City By-law amendments will take up to a year to complete.
Preliminary discussions with the Liquor Control and Licensing Branch have been very positive. On this basis staff recommends that this approach to regulate the "standard hours of liquor service by area" of Liquor Primary businesses be pursued. However, as the city does not have the authority to implement the required by-law Council cannot approve a final policy at this time. Council can only approve the policy in-principle and request that staff approach Cabinet for the required authority. If Cabinet approves "liquor primary establishment" as a prescribed business then staff will prepare the necessary by-law amendment for Council's consideration.
Recommendation A would approve the "standard hours of liquor service by area" policy and Council would be supporting the various standard hours of liquor service detailed in the table in Appendix A. Staff would use the policy as a guide to help assess the suitability of provincial Liquor Primary applications that continue to be submitted to the city, in accordance with the Liquor Control Act and Liquor Control and Licensing Regulations which prescribe the form of Local Government resolutions. Approval of Recommendation C will provide staff the authority to pursue various impact reduction measures and to report back to Council as required.
Extended Hours of Liquor Service policy (Secondary or Extended Hours License)
Similar to the problem with approving the standard hours policy, Council can only approve this policy in-principle and request that staff approach the provincial government to obtain the necessary authority to implement a two-tiered license system. If that authority is granted then staff would report back to Council with recommendations to approve the Extended Hours of Liquor Service Policy completely and to authorize the necessary by-law amendments to implement that policy.
This report provides an opportunity for Council to consider the Extended Hours of Liquor Service Policy independently of the Standard Hours of Liquor Service by Area Policy and also allows Council the opportunity to clearly declare if it wishes to continue with liquor service beyond 2 a.m.. If Council supports the continuation of extended hours of liquor service beyond 2 a.m., then Council should approve Recommendation E. However, if Council does not support the continuation of extended hours of liquor service beyond 2 a.m. then Council should approve Recommendation F.
Either Recommendation E or F provides staff with the authority to approach the provincial government to obtain Charter amendments necessary to implement a two-tiered license system. Even with a 2 a.m. limitation on hours of liquor service the implementation of a two-tiered license system would be a valuable tool for the City by providing added flexibility for operators and ensuring adequate local government control to address neighbourhood issues in a timely fashion.
Staff strongly recommends that Council only proceed with extended hours if the City is able to implement the two tiered license system. A key City objective with regard to earlier and later hours of liquor service has been to have increased control over the administration of the extended hours, thereby providing a means for taking more immediate action with regard to problem establishments and local issues.
Interim Approach if Council wishes to continue Liquor Service beyond 2 a.m.
Until such time that a workable long-term solution can be implemented, staff recommends that Council continue the current Interim Hours of Service Policy as is. This option, is included as part of Recommendation E. Continuation of the status quo would require staff to seek approval from the LCLB. Continued temporary approvals are contrary to LCLB policy; however the Branch has indicated a willingness to work with the City while policy development continues.
Interim Policy Outside the Downtown
Currently the extended hours apply only to Liquor Primary establishments in the downtown area. Hours of liquor service outside the downtown will continue to be limited to their current hours of operation, which is typically 2 a.m. for cabarets, private clubs and some hotel lounges, while neighbourhood pubs are required to cease liquor service between 11 pm and 1 a.m.. Some of these establishments have indicated that this has severely impacted their businesses. However, in light of the issues related to later hours of liquor service, staff recommends that extended hours not be expanded outside the downtown until staff report back with the implementation of impact reduction strategies.
COMMENTS
Police Comments
The Vancouver Police have indicated that extended hours of liquor service continue to be problematic and support a return to a 2 a.m. bar closing. They believe that before the city embarks on a relaxation of liquor laws, an infrastructure needs to be in place that includes, but is not limited to:
· Conditional/time-limited approvals that would permit revocation for the problem operators and also allow flexibility for changing neighbourhoods;
· An enforcement system in place to deal with public safety issues (overcrowding, over-service, service to minors) expeditiously. Other matters could be dealt with on longer timelines; and
· Staffing resources to provide safety and security.
Comments provided by the Vancouver Police Department are attached as Appendix C and include the following: reports from Deputy Chief Constable B. Rich and Liquor Co-ordinator Constable P. Ruschke, and statistical analysis of calls for service in District 1.
Finally, VPD wishes to bring to Council's attention the toll excessive overtime takes on members. This factor is not often mentioned when late night bar closings are discussed. To date District One members have worked approximately 400 hours of overtime each. If the trend continues it will average 480 hours per member for the year. This equates to working an additional twelve weeks a year. Much of this overtime is cost recovery or court time which does not impact the Overtime budget, but it does have a considerable impact on the members.
Senior management is concerned about the possible fatigue of their workforce. Officers are not getting the necessary time away from work that enables people to recharge and approach the challenges of policing with energy, enthusiasm and patience. The policing of liquor establishments on overtime call-outs is particularly draining because of the constant onslaught of intoxicated, unreasonable, belligerent, combative people requiring police intervention. There is a danger that tolerance levels and professionalism will become frayed and when combined with fatigue, mistakes are inevitable. Senior management are concerned that the volatility of the Granville Entertainment District and the ongoing drain on staff resources will result in a significant police incident. The cessation of the late night bar closings would provide some measure of relief for this serious problem.
Health Department Comments
If liquor hours of service are to be extended permanently, it is imperative that there be swift methods in place to deal with those premises that create noise problems. As noise concerns would be continuing later than present, the current method of prosecution and the length of time to conclude a prosecution will be even more unsatisfactory for those impacted.
The Director of Environmental Health, Vancouver Coastal Health Authority will be submitting a report under separate cover recommending requirements for sound mitigation in all establishments where music (recorded or live) may be a major activity. Those establishments with outdoor patios or sidewalk seating should be required to actively monitor and control patron activity in these areas to ensure minimal noise impact on the surrounding community - particularly where the outdoor location continues to be used as a smoking area after 11:00 p.m., when it ceases being approved for use as a seating area.
SOCIAL IMPLICATIONS
Social Planning Comments
The Alcohol Policy research commissioned by Social Planning indicates that the two most effective and most cost-effective measures which are within City control are limits on outlet density and limits on hours of service. Based on the research, a number of the other mitigation measures noted in this report are less effective and/or more costly.
The Director of Social Planning generally supports the idea of standard hours on an area basis, but believes that before a general policy to extend hours beyond 2 a.m. can be considered, there needs to be an assessment of the actual effectiveness of various mitigation measures and their cost to the City, as well as the legal ability to roll back hours. In addition, the Director of Social Planning suggests that the assessment of extended hours needs to include factors such as the density of outlets in a given area and other environmental factors which may combine with extended hours to negatively affect neighbours.
FINANCIAL IMPLICATIONS
Staff will report back with financial implications of Council's support in principle decisions made with respect to this report before the end of the year. In the interim, the existing temporary fee structure will remain in place.
On January 15, 2004 Council approved revisions to the License By-law fee schedule to recoup the cost associated with policy development and monitoring (primarily policing costs). It was anticipated that new fees would generate approximately $793,000 in additional revenue based on a continuation of the temporary liquor service extensions up to 4 a.m.. Costs were anticipated to be approximately the same at $ 793,000. In June of 2004, Council revised the Interim Hours of Service policy to rollback the allowable maximum closing time to 3 a.m., with a few limited exceptions for a few summer festivals. This change affected the anticipated revenue as the graduated fee structure was weighted towards the 4 a.m. closing, although policing costs were slightly reduced as well.
The revenues received and projected to the end of the year should equal approximately $650,000, roughly $143,000 under the projected revenue. Actual and projected cost to the end of the year should equal approximately $736,000 ($678,000 for police monitoring and $58,000 for policy development and License office monitoring). This results in an anticipated shortfall of approximately $86,000.
A preliminary police estimate for the 2005 operating year indicates that the policing cost will be higher than this year. The increase is primarily due to the cost associated with the introduction of a Firearms Interdiction Team deployed on the weekends and statutory holidays.
CONCLUSION
More than a year has passed since the implementation of the initial trial period for extended hours of liquor service, which was initiated in response to Provincial liquor licensing reforms. Thousands have flocked to the downtown to participate in the late-night scene and businesses have in turn benefited. Unfortunately, the greatest impacts of this have been felt by the local residents, who have been exposed to the increased noise and drunken behaviour of participants through the night and into the early morning hours. Because of the short-term nature of the initiative, impact reductions were limited to increased policing efforts. As such, the City could look forward to less negative impacts with the uses of more impact reduction strategies.
The policy directions recommended in this report have been influenced strongly by the City's experiences to date, research on other North American and other international cities, research on alcohol policy, feedback from stakeholders, and the City/ Provincial regulatory relationship. It has also taken into account problems entrenched in the current system as well as Council's desire to consider new directions in terms of the City's nightlife.
This report proposes a liquor licensing model, based on specific areas of the City and with a two tier licensing system, that provides the opportunity for temporary extended hours, both earlier and later, demonstrates the need for more local control, and provides impact reduction measures. However, Council can support the proposed model only in principle by Council until Cabinet and the Province grants the necessary authority to allow the City to implement the model by way of by-law. Staff would be required to report to Council prior to implementation of such a By-law. Approval of RECOMMENDATIONS A, B, C and D provide staff with authority pursue the proposed liquor licensing model.
Given the issues regarding implementation (as outlined in this report) and the concerns and experiences detailed in the Liquor Licensing Hours of Service Policy Review report, presented to Council on October 5, 2004 staff have separated the issue of liquor service beyond 2 a.m. from the other recommendations (choice of Recommendation E or F).
Finally, the key message staff wishes to relay to Council is that any liquor service beyond the recommended standard hours of liquor service should only be considered on a temporary basis and subject to the City having the Vancouver Charter authority to implement the two tier licensing system giving it the necessary ability to take effective and efficient action to rollback the temporary approvals if required.
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VANCOUVER POLICE DEPARTMENT