SUPPORTS ITEM NO. 3 CS&B COMMITTEE AGENDA OCTOBER 26, 1995 POLICY REPORT LICENSING Date: October 5, 1995 TO: Standing Committee on City Services and Budgets FROM: General Manager of Engineering Services SUBJECT: Sidewalk Cafe Review RECOMMENDATION A. THAT large sidewalk cafes continue to remove their railings in the winter from October 31st to March 1st, except where grade problems would preclude a small cafe operation. In these cases, a small cafe with a platform and railings could be permitted. B. THAT sidewalk cafe permits continue to be issued to restaurants and limited service food establishments only. C. THAT Sidewalk Cafe guidelines (Appendix A) be amended so that all sidewalk cafes within 200 feet of residential development have mandatory closing hours of 11:00 p.m., with earlier hours being instituted at the discretion of the City Engineer. D. THAT Large Sidewalk Cafe guidelines (Appendix A) be amended to permit structures (to a maximum height of 2 feet above the sidewalk) to harmonize indoor and outdoor seating levels. E. THAT the temporary 6 month EA I position approved for the Sidewalk Cafe program be continued and combined with the annual temporary 6 month position responsible for the Produce Display program to create a regular full-time EA I position. The cost of this position will be recovered through revenue from the programs. CONSIDERATION F. THAT staff advise the Liquor Control and Licensing Branch (LCLB) that the City supports a change to provincial regulations to allow small sidewalk cafes without railings to serve alcoholic beverages with food and to change the Small Sidewalk Cafe guidelines (Appendix A) accordingly. COUNCIL POLICY Council has authorized the City Engineer to approve sidewalk cafes on City streets to add interest to the sidewalk and to provide a service to customers and the business community. Guidelines for this process were most recently amended on February 3, 1994 when Council approved the recommendations of the "Sidewalk Cafes - Proposed Changes to Administration and Guidelines" report (Appendix B). Council adopted the Central Area Pedestrian Weather Protection policy in 1978 and amended it most recently on November 9, 1993. It encourages awnings and other protective elements, which provide a supportive environment for window shopping and other active pedestrian street uses, enhance the appearance of pedestrian oriented shopping area, and improve the economic viability of such areas. On February 18, 1993, Council approved the Yaletown report, which stated that the historical nature of Yaletown should be preserved and included "Yaletown Dock Guidelines" specifying that sidewalk cafe by- laws must be adhered to in this area. SUMMARY This report reviews minor issues within the City's successful sidewalk cafe program and recommends revised guidelines regarding year-round opening. The new guidelines would allow establishments to maintain a year-round small cafe with platform and railings if the structure is necessary to level grade differences in the sidewalk. The feasibility of allowing pub patios on City streets was reviewed. Based on past experience, staff anticipate that sidewalk seating for liquor only service would lead to complaints of noise and rowdy behaviour, which would erode public support for the program as a whole. Therefore it is recommended to continue to restrict the program to food service establishments only. It is put forward for Council's consideration that the City inform the Province that Council supports amending provincial regulations to allow restaurants to serve alcoholic beverages at small sidewalk cafes without requiring railings. This would also allow large sidewalk cafe operators who serve alcohol to continue operations through the winter season. The increasing popularity of the Sidewalk Cafe program has led to more conflicts between operators and residents in mixed use areas. This report advises Council that staff recommend implementing restrictive closing hours on sidewalk cafe operations in areas where there are residential uses. Due to the over 80% increase in the number of businesses in the Sidewalk Cafe program and the continuing growth in this and other street activity programs the previously approved 6 month temporary Engineering Assistant (EA) I position should be continued and merged with the 6 month temporary EA I position responsible for the Produce Display program. This creates a permanent EA I position with salary recovered through sidewalk cafe and produce display revenues. PURPOSE This report reviews the Sidewalk Cafe Program and addresses the issue of year-round operation for sidewalk cafes; permitting pubs to have sidewalk cafe permits; closing hours; and guideline changes related to cafe structures. BACKGROUND On February 16, 1995, Council requested a report back on the feasibility of amending the Sidewalk Cafe program guidelines to allow an expanded year-round operation of sidewalk cafes. The City's sidewalk cafe program is very successful in providing a service for both the public and restaurant businesses. Sidewalk cafes add interest, variety and attraction to the streetscape; they increase business and exposure for restaurants and cafes. Allowing these uses optimizes sidewalk use. City regulations allow for two types of sidewalk cafes: 1. A large sidewalk cafe that operates with railings from March 1 to October 31, and which may operate as a small sidewalk cafe from November 1 to the end of February. 2. A small sidewalk cafe of up to 3 tables and 6 chairs, which does not have railings and can operate year-round. Currently,there are122 large sidewalkcafes and 62small sidewalk cafes. DISCUSSION In June 1995, cafe operators were surveyed regarding year-round use and other issues. Their responses are tabulated as Appendix C. The Sidewalk Cafe review and survey identified a number of issues. A. Year-Round Sidewalk Cafe Operation An extended season has been requested by several of the large cafe operators who wish to take advantage of fair weather days in the winter months. On February 3, 1994, Council expanded the sidewalk cafe season from 7 months to 8 months (now March 1st - October 31st). Council also approved the small sidewalk cafe program, which permits operators to have up to 3 tables and 6 chairs (with no railing) on City sidewalk year-round. Large Sidewalk Cafe permit holders have access to this program (at no additional charge) so that they may operate year-round but they must remove their railings (and any other structures) from October 31 to the end of February. For several operators, operating in the winter as a small cafe program does not work because - a platform (which requires a railing for safety) may be required because of grade problems; - railings are desired to better control the outdoor space and to provide customer comfort; and - a liquor license cannot be obtained for the sidewalk cafe unless the cafe has railings. Other cafe owners do not want to operate their cafe in the winter but wish to leave the railings up because of the costs of removal and storage of the railings and furniture. Staff have evaluated the option of permitting year round large operations. The following is a list of the pros and cons. Positives - increases profile for restaurant (off-set by appearance if not actively used); - reduces costs for cafes as no removal/storage costs (possibly off-set by charges for sidewalk use); - allows liquor service; - corrects grade problems with platforms (small cafes cannot currently); and - gives more control of the outdoor space to restaurant operators. Negatives - reduced demand for and use of in winter; - non-operation/storage of railings/furniture in winter; - storage space collects litter; - reduced sidewalk area for pedestrians; - pedestrians cannot take advantage of awning protection; - prevention of pedestrian window shopping for adjacent businesses; - potential pedestrian hazard if not in use; - increased fees to reflect increased use of sidewalk; - need to further review parking and other development impacts; - increased pressure to allow structures on sidewalk to provide weather protection; - more permanent fixtures make access for utility and street works more difficult; and - legal concerns regarding permanent loss of street area. After considering pros and cons staff recommend several changes to make small winter cafes more possible for all operations. However, the continuation of large sidewalk cafes year-round is not recommended. Grade Levelling Some restaurants that do wish to actively operate year round cannot because of grade problems. Therefore, it is recommended that these be allowed to operate as a small sidewalk cafe with a platform and railings year round. Liquor at Small Sidewalk Cafes Small sidewalk cafes cannot serve alcohol with food because provincial regulations require railings for liquor service; however, some of these establishments would like to provide this service to their customers. Therefore, staff puts forward for Council's consideration that the City advise the Liquor Control and Licensing Branch of support for a change to allow small sidewalk cafes without railings to serve alcoholic beverages with food. This will also allow large sidewalk cafe operators who serve alcohol to continue their full operations as a small sidewalk cafe during the winter season. The Chief Constable does not support this change. B. Pub Patios on Sidewalks Current-Council approved guidelines only allow food service establishments to have sidewalk cafe permits. Recently, there have been requests from establishments licensed to sell liquor without food service. Due to concerns regarding noise levels and the increased possibility of rowdy behaviour, the consumption of alcohol without associated dining has not been seen as a desirable addition to the streetscape and therefore City policy has not permitted such seating on the sidewalk. These possibilities remain serious concerns, especially where commercial and residential uses co-exist. Staff have noted that most noise complaints are directed at establishments that, although licensed as restaurants, have operations that resemble "pubs." Therefore, it is recommended that sidewalk cafes remain restricted to food service establishments only. This recommendation is supported by the Chief Constable. C. Closing Times The Police have informed us that they are called upon to resolve noise complaints which generally are disruptive to the neighbourhood without exceeding the proscribed decibel level necessary for enforcement by the Health Department. In the past, imposing closing hours based on residential complaints has been the only method of regulating noise levels in sidewalk cafes. When complaints indicate that a closing time needs to be imposed, an appropriate time is set for all sidewalk cafes in the immediate vicinity. This has been necessary only in neighbourhoods that have mixed commercial and residential uses. For instance, closing hours of 11 pm Sunday to Thursday and 12 midnight on Friday and Saturday are in effect for the Yew Street area sidewalk cafes. Imposing closing times on a complaint basis allows flexibility and ensures that limitations are not imposed where no problem has been identified by the neighbouring community. However, imposing restrictions on only select sidewalk cafes can create resentment and charges that staff is forcing an establishment to be less competitive. There seems to be a trend towards later openings and there is some feeling that mandatory closing hours restrict business unnecessarily. Selective restrictions are also more difficult for LCLB inspectors and Police to enforce. One proactive solution, which would reduce significant competitive differences, the onus on residents to complain, and enforcement difficulties, would be to mandate base closing hours of 11:00 p.m. for all sidewalk cafes that are within 200 feet of residential development. In the Large Sidewalk Cafe survey, many responded that this was a "neighbourly" hour and would also satisfy their customers. It should be noted that Health Department staff originally suggested a 10:00 p.m. closing to forestall further conflicts, while the Chief Constable suggested 10:00 p.m. Sunday to Thursday and midnight Friday and Saturday. However, staff agree that an 11:00 p.m. closing each day would be satisfactory, provided that earlier hours are individually set where necessary, and that closing times appear on the permit for the sidewalk cafe. Staff recommends this option for Council's approval. D. Sidewalk Cafe Structures All sidewalk cafes in the "Large Sidewalk Cafe" program are required to have a demarcation that separates the sidewalk cafe from pedestrians. Currently, decking or any raised structure is permitted only where there is a significant difference in grade (slope) in the sidewalk from one part of the sidewalk cafe area to another. Many sidewalk cafe operators have requested (and some have installed, without approval) decking for other reasons. These vary from physical reasons (e.g. to harmonize indoor and outdoor seating levels) to aesthetic or economic reasons (e.g. to attract increased public attention to the restaurant). In the survey of sidewalk cafe operators, 84% responded that they would like to install decking at their own discretion. The presence of a deck alters the relation of the sidewalk cafe to the sidewalk and pedestrians. If the only separation between pedestrians and patrons is an open railing, the sidewalk cafe seems to be an integral part of the streetscape. If a deck is present or if the railing structure is visually closed, the sidewalk cafe seems removed from the sidewalk. If the deck is raised significantly, then the restaurant patrons can seem imposing to pedestrians. This detracts from the ambience originally intended for the Sidewalk Cafe program. It has also been noted by staff that once a structure has been erected, it is difficult to achieve its removal. Therefore, it is recommended that the guidelines be extended only to allow decking to harmonize indoor and outdoor seating levels (not more than 2 feet above the sidewalk level), in addition to decking for grade levelling purposes, and not for any other purpose. STAFFING LEVELS On February 3, 1994, Council approved a six months temporary EA I position for implementation of the new program. The program has grown approximately 80% since that time. The large sidewalk cafe program has grown by 20% and the small sidewalk cafe program has increased by 50% (to 62 cafes) in its second year of operation (1995). If these programs are to run effectively, it is necessary to bring new cafes into the program, assure timely approvals for new applicants, and ensure that Council's guidelines are followed. This requires the 6 month EA I position annually. Due to the continuing growth in this and other street activity programs, staffing levels should be rationalized by linking this position to the 6 month temporary EA I position in the Produce Display program, which has been approved annually since 1988. This creates a permanent EA I position at a salary of approximately $27,200, which will be recovered through sidewalk cafe and produce display revenues. Sidewalk Cafe fees were restructured on February 3, 1994; this restructuring, plus growth in the program led to an increase from $59,400 (1993) to $91,800 (1994). Revenues for 1995 are estimated to rise to $125,000. The Produce Display program revenue is approximately $30,000 annually. * * * * * ---------------------------------------------------------- APPENDIX A GUIDELINES FOR SIDEWALK CAFES (SMALL) * Changes from previous guidelines are underlined. Each approved sidewalk cafe shall: 1. directly abut the restaurant so patrons and servers do not cross the flow of sidewalk pedestrian traffic. 2. be adjacent to the restaurant's property (frontage or flankage). 3. have minimum sidewalk width of 3.0 m (10 ft.) or a minimum sidewalk width of 3.7 m (12 ft.) if there are curbside obstructions, e.g., lamp standards, signs, etc. 4. have a mandatory closing hour of 11:00 p.m. if they are in or within 200 feet of areas that have residential uses. 5. not block access to Fire Department connections or exits from the adjacent building. 6. carry insurance satisfactory to the Director of Risk Management. 7. have no more than 3 tables, which may be a maximum of 20" wide, with 2 seats per table placed flush against the building and taken in when closed; no umbrellas are permitted. 8. not serve liquor. (REMOVE) 9. have a valid business license as a restaurant or a limited service food establishment. 10. pay an annual permit fee of $200.00, $50.00 of which is to be paid upon application and is non-refundable. PLEASE NOTE: Inspections of the site may be carried out by the Engineering Department before, after, and during the sidewalk cafe operations. However, the City is under no obligation to perform such inspections and these inspections in no way relieve the applicant from the obligation to comply with these guidelines and the terms of the Sidewalk Cafe Permit. --------------------------------- GUIDELINES FOR SIDEWALK CAFES (LARGE) * Changes from previous guidelines are underlined. The guidelines for sidewalk cafe design are quite general to encourage a variety of looks by restaurant owners. Each approved sidewalk cafe shall: 1. directly abut the restaurant so patrons and servers do not cross the flow of sidewalk pedestrian traffic. 2. be adjacent to the restaurant's property (frontage or flankage). 3. leave sufficient unobstructed sidewalk width for the comfortable passage of pedestrians. This will be a minimum of 2.5 m (8 ft.) in most commercial areas, and up to 3.7 m (12 ft.) or more in areas of high pedestrian volumes such as near intersections. To maintain the spacious heritage nature of Yaletown a 3.0 m (10 ft.) width will be maintained. 4. have a mandatory closing hour of 11:00 p.m. if they are in or within 200 feet of areas that have residential uses. 5. not block access to Fire Department connections or exits from the adjacent building. 6. carry insurance satisfactory to the Director of Risk Management. 7. be marked off by means of planters or railings that have an 'OPEN' appearance. Bollard and chain fencing is not permitted as it poses a hazard to pedestrians with a visual disability. The maximum height allowed is 1 metre (40") and the minimum is .75 m (30"). The use of plants is encouraged. 8. be constructed so that it can be completely removed within 24 hours if required. Platforms and structures are permitted only to level a significant grade difference in the sidewalk or to harmonize indoor and outdoor seating levels. 9. have some covering for the general seating area. Umbrellas or canopies may be used; however, if a canopy is used, it may NOT use supports which rest on City street allowance; umbrellas may not be attached to railings. 10. not be installed earlier than March 1st and must be removed from the City street allowance by October 31st each year; 3 tables and up to 6 seats can be used year round, in accordance with the guidelines for small sidewalk cafes. 11. have a valid business license as a restaurant or a limited service food establishment. 12. obtain a liquor license extension if liquor is to be served in the sidewalk cafe. 13. enter into a license agreement with the City. 14. pay an annual permit fee based on location and square footage, $100 of which is to be paid upon application and is non- refundable (semi-annual payment allowed due March 1st and July 1st). PLEASE NOTE: Inspections of the site may be carried out by the Engineering Department before, after, and during the sidewalk cafe operations. However, the City is under no obligation to perform such inspections and these inspections in no way relieve the applicant from the obligation to comply with these guidelines and the terms of the Sidewalk Cafe Permit. * * * * * --------------------------------------------------- APPENDIX B CITY OF VANCOUVER M E M O R A N D U M From: Maria Kinsella, City Clerk Date: 4th February, 1994 Refer File: 2635 To: Ken Dobell, City Manager Dave Rudberg, City Engineer Victoria Garland, Director of Housing & Properties Ken Stoke, Director of Finance Jack Perri, Director of Permits & Licenses John Mulberry, Director of Legal Services Subject: SIDEWALK CAFES - PROPOSED CHANGES TO ADMINISTRATION AND GUIDELINES Please be advised that on February 3, 1994, City Council approved the following recommendations of the City Services & Budgets Committee, with regard to the above matter: A. THAT the City Engineer expand the sidewalk cafe program to permit small cafes, without railings, on a year-round basis. B. THAT program administration be streamlined with the City Engineer assuming responsibility to administer the permit charges for all approved sidewalk cafes. C. THAT a revised fee schedule, as shown on Appendix B of the Policy Report dated December 31, 1993, be approved. This includes the option of a semi-annual payment and a 1/2 year option at 1/2 fee (min. $200.00). D. THAT the revised Sidewalk Cafe Guidelines, contained in Appendix A of the Policy Report dated December 31, 1993, be approved, with the following amendment: small sidewalk cafes be allowed to have a maximum of three tables and six seats, where the restaurant's frontage allows. E. THAT a temporary full-time EA 1 position be approved for 6 months in 1994 with a review prior to 1995 to assist in administering the Sidewalk Cafe program at a cost of $15,800 to be recovered through increased revenue from the program. F. THAT the City Engineer meet with community-minded sidewalk cafe operators to explore the possibility of their assuming responsibility for sidewalk litter generated by their patrons by: - purchasing City litter containers, and - arranging for pick up and disposal of the litter. CITY CLERK ----------------------------------------------------- APPENDIX C SIDEWALK CAFE SURVEY - 25 Responses (21%) - 120 Mailed SERVICE FROM CITY STAFF 1. How can City staff improve our service to you? CITY SERVICE Good Service 6 Other Comments: Needs improvement Sidewalk cleaning Restrict program to restaurants not Limit food service Shorten processing time Allow year-round Departments should focus on their own concerns One Department should deal with all outside issues No Response 13 TIME OF YEAR RESTRICTIONS The following questions ask you how you would like to use your sidewalk cafe area if year-round use was permitted. Currently, the full sidewalk cafe is permitted from March 1st to October 31st, after which all structures and railings must be removed from the sidewalk, and only 3 tables and 6 chairs are allowed. Yes No 2. Would you like to keep your sidewalk cafe fully operational (for all twelve months?) 21 4 3. If so, how will you make the sidewalk cafe attractive to customers during the cold and rainy months of the year? SUGGESTED WINTER IMPROVEMENTS Method No. of Respondents Heaters 12 Awnings 6 Flowers 6 Enclosure 4 Decor 4 Umbrellas 3 Drapes 1 Trees 1 Clean and Dry 1 4. If not, would you prefer to: Yes No a) leave the sidewalk cafe railings and/or decks set up for all twelve months and operate fully only during (part of) the current base period (Mar. - Nov.)? 3 1 b) operate also whenever it was sunny between November and March? 4 0 c) operate also on weekends for the colder months? 3 1 d) store sidewalk cafe furniture in this space during months when the cafe is not in use.? 2 2 e) remove everything between October 31st and March 1st? 0 4 HOURS OF OPERATION Sometimes the needs of neighbours and customers differ; the operator and the City must consider both. 5. What hours of operation do you think would be neighbourly? From_______ to________ Sun. - Thurs.; from_______ to________ Fri. - Sat. 6. What hours of operation would your customers prefer? From_______ to________ Sun. - Thurs.; from_______ to________ Fri. - Sat. SUGGESTED CLOSING TIMES No. of Respondents Neighbourly Customers Prefer Hours Sun. - Fri. - Sun. - Fri. - Thurs. Sat. Thurs. Sat. 9:00 p.m. 10:00 p.m. 11 3 7 1 11:00 p.m. 6 7 1 3 12 Midnight 3 7 8 8 1:00 a.m. 2 4 5 5 2:00 a.m. 0 1 0 4 3:00 a.m. 1 1 1 1 Later 0 0 1 1 LIQUOR RESTRICTIONS Yes No 7. Would you be interested in serving liquor in the sidewalk cafe? 10 4 8. Would you like to be able to serve liquor without being required to install a railing? 4 16 PERMIT FEES Yes No 9. Would you like decking to be permitted: a) only to compensate for a slope in the sidewalk? 5 11 b) also to compensate for a difference between the floor level of the restaurant inside and the sidewalk level outside? 12 7 c) also to compensate for a badly cracked sidewalk surface? 13 6 d) at the operator's discretion, provided that the installation meets City guidelines? 21 4 CAFE DESIGN - DECKING Yes No 10. Should cafe operators who wish to have full-time use of the sidewalk pay a different rate than those who vacate the sidewalk for part of the year? 13 12 11. What charge would be appropriate for year-round use? WINTER CHARGES No. of Suggested Charge Respondents Current Charge (No Extra Charge) 5 Current Charge Plus 50% 7 Other 3 No Response 7 Yes No 12. Should operators pay market rate for the square footage of the sidewalk cafe? 5 19 * * * * *