SUPPORTS ITEM NO. 5CS&B AGENDA NOVEMBER 28, 1996 POLICY REPORT LICENSING AND PERSONNEL Date: November 19, 1996 Dept.File No.2206IC.COV TO: Standing Committee on City Services and Budgets FROM: Directors of Permits and Licenses and Central Area Planning, in consultation with the Directors of Social Planning, Finance, Legal Services and the Chief Constable SUBJECT: Staffing Required to Improve By-Law Enforcement for Licensed Establishments and for Problem Premises RECOMMENDATIONS A. THAT Council approve a License Coordinator and two clerical support positions in the Permits and Licenses Department, and a Lawyer and one half clerical support position in the Law Department, as regular full-time positions as set out in Appendix A at a 1996 cost of approximately $309,800; FURTHER THAT the staff positions outlined in Appendix A be approved subject to job evaluations by the Director of Human Resource Services; AND FURTHER THAT an annual overtime budget of $30,000 be allocated to the Permits and Licenses Department for evening and weekend inspections by the Property Use Inspectors. B. THAT the ongoing costs for this program expansion be recovered through Business License fees as proposed in the accompanying report on 1997 Business Licenses. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of A and B. COUNCIL POLICY On July 11, 1996, in dealing with the proposed Liquor Licensing Strategy for the Downtown area, Council resolved: THAT the Director of Permits and Licenses, in consultation with appropriate City and Provincial enforcement agencies, report back with ways to ensure better coordination of enforcement resources so that licensed establishments which are having significant negative impacts on their neighbours are dealt with under existing regulations in a timely manner, and include recommendations to: a) determine the need and source of funding for a coordinator who would monitor problem premises, coordinate evidence, interview new licensees and provide liquor license information; b) provide funding for evening and weekend inspections by the Property Use Inspectors to allow for joint inspections with the Police Department. The costs of new levels of service are to be offset by cost reductions or new revenues. SUMMARY This report recommends the establishment of five new positions to coordinate enforcement for problem premises. It is proposed that these staff be allocated to the Law and Permits and Licenses Departments, and that the funding come from a Business License fee increase. PURPOSE This report proposes creation of new staff positions to better coordinate the licensing of liquor establishments, to improve by-law enforcement under the Zoning and Development and License Bylaws for problem premises, and to facilitate community based solutions to reduce the impacts of entertainment uses and problem premises on residential areas. BACKGROUND As described in the April 26, 1996, reports on Downtown Liquor Licensing Policy, one of the most pressing liquor licensing issues is that the impacts of poorly run drinking establishments can persist for years without satisfactory resolution. In addition, numerous problem businesses have recently been identified by staff and the Police Department, such as pawnshops, 24-hour stores and restaurants, many of which are in the Downtown Eastside Area. The City's ability to enforce has not kept up with the dramatic increase in problem premises. An important contributing factor to this issue is the lack of staff who are specifically responsible for ensuring that all affected departments work together in preparing, implementing and following up on responses to problem premises. The need for coordination and increased enforcement is becoming urgent, because: - Enforcement policies and procedures are complex, time consuming and generally require the involvement of several departments. - In recent years, the number of active problem premises files has grown from a norm of about four to between 30 and 40 annually. License reviews should be carried out for many of these, while some need to be scheduled for show cause hearings. - It has become regular practice for the Property Use Branch and the Police Department to coordinate and conduct joint inspections on problem premises whenever possible. These inspections are needed because, while police enforcement action against criminal activities may become delayed or sometimes lost in the court process, the Property Use Branch can provide quicker enforcement under the Zoning and Development and License By-laws. - Staff in Permits and Licenses and Planning receive dozens of liquor license enquiries every week, but there is no one person responsible for tracking these enquiries and ensuring they are dealt with thoroughly and consistently. - Without adequate staff resources, it is not possible to do the proactive work needed to establish a more consistent and efficient liquor license application review process, create a more effective process for dealing with problem premises, and generate a more comprehensive information exchange with license holders, applicants, the public and provincial government staff. - In some areas of the City, the types of business and the attitude of business owners have changed, resulting in little regard for City regulations and the laws in general. - The Law Department is already stretched to the limit, and an enhanced enforcement program will lead to delays for prosecution, unless additional resources are obtained. DISCUSSION In order to deal with enforcement issues in all types of business and fulfil our mandate to regulate problem premises, the following additional resources have been identified: - A License Coordinator position to coordinate enforcement tasks, with support provided by a clerical position. - A Clerk Typist position to provide support for the Property Use Inspectors, as there are 25 inspectors with no dedicated clerical backup. These Inspectors carry out their own research, answer general enquiries and look for assistance from staff in other areas. - An additional Lawyer and half-time support person in the Law Department to expedite legal action. These additional staff will be responsible for the following: - coordinate responses to problem premises between the Permits and Licenses, Police, Fire and Health Departments, as well as trouble-shooting problems before they become big issues; - process liquor license applications, interview applicants and prepare reports to the Liquor Licensing Commission for all areas of the City; - field all liquor license and potential problem premises enquiries, track proposals, provide information on policies and procedures to prospective applicants and the public; - act as a City staff liaison with counterparts in the provincial Liquor Control and Licensing Branch; - provide information and advice to the Liquor Licensing Commission regarding applications and problem premises, and provide research and information support to Council members who negotiate with the Province for changes to liquor license regulations; - provide general information to the public and support for the inspectors, including typing of Operators Permits, researching files and providing telephone updates to the inspectors in the field; - gather evidence and coordinate license reviews and show cause hearings, and ensure penalties are followed up; - conduct evening and weekend inspections in coordination with the Police Department, in order to monitor and enforce the Zoning and Development and License Bylaws; - provide legal support for N.I.S. Teams and assist with enforcement action on problem businesses; - provide additional resources for the By-law Prosecutor's Office to ensure timely processing of by-law prosecution. The current Business License system is approximately 25 years old, with no capacity to retain historical data, identify problem premises, track problem owners or identify areas of concern. The new system (recently approved by Council) is scheduled for implementation in February 1997, and will be capable of providing this type of information to the proposed new staff. The proposed positions will be permanent and full time. The Liquor Coordinator and clerical assistant would be supervised by the Assistant Director of Permits and Licenses. The additional law resources would be located within the Law Department. SOCIAL IMPLICATIONS Creation of these staffing positions will ensure more timely and effective by-law enforcement and community based resolution to problem premises and related issues, thereby reducing their impacts on surrounding residential areas. FINANCIAL IMPLICATIONS Over the past few years, enforcement resources have been re-allocated from other areas of the Permits and Licenses Department to deal with the high priority issues. It has now reached the point where many problem businesses are not being dealt with in a timely manner. The proposed new resources could be funded by a general Business License fee increase as proposed in a companion report. CONCLUSION Staff recommend approval of the new resources identified in this report as a key step in implementing Council s Liquor Licensing Policy and to reduce the impacts of problem premises, especially in the Downtown Eastside and Downtown South areas, where there are significant concentrations of entertainment uses and problem businesses. In the past, the City has relied on voluntary owner compliance and the Police Department's ability to deal with criminal activities. We have reached the point where these methods are no longer effective and the City needs to take a proactive enforcement role with regard to the operation of problem businesses that impact heavily on residential neighbourhoods. * * * APPENDIX A Page 1 of 1 STAFF AND RESOURCE NEEDS FOR FIVE NEW POSITIONS FOR LIQUOR LICENSE AND PROBLEM PREMISE COORDINATION ANNUAL COSTS Salaries and Fringe Benefits: 293,600.00 ONE TIME COSTS Office furniture and computers 33,200.00 Overhead: (Training, Wiring, Office Supplies) 6,000.00 License software 7,000.00 46,200.00 TOTAL COSTS $339,800.00 1. New staff positions are subject to evaluation by the Director of Human Resource Services. The above figures are estimates based on expected responsibilities, work program and office needs. 2. A PC for each staff member is necessary in order to create, monitor and regularly update a data base of liquor license enquiries, applications, problem premises and recommended actions. This would allow for better issue management, proactive policy work, and information support for other departments, the Liquor Licensing Commission and Council.