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JULY 24, 1997
ADMINISTRATIVE REPORT TO: Standing Committee on Planning and Environment
FROM:General Manager of Engineering Services in consultation with the Director of Central Area Planning
SUBJECT: Sidewalk Cafe Program Expansion to Downtown Pubs
A.THAT sidewalk cafe permits continue to be issued to restaurants and limited service food establishments only.
The General Manager of Engineering Services, the Directors of Planning and Social Planning, Chief License Inspector, the Chief Constable, and the Health Board recommend against expanding the Sidewalk Cafe Program to neighbourhood pubs and hotel pub/lounges and support Recommendation A.
However, if Council wishes to issue sidewalk cafe permits to pubs and lounges, then the General Manager of Engineering Services puts B to H forward for:
B.THAT, for a one-year trial period, a sidewalk pub patio permit be issued to the Yaletown Brewing company on an exceptional basis;
C.THAT, for a one-year trial period, sidewalk cafe permits be expanded to include neighbourhood pub patios (Class D licenses - see Appendix A) in the Downtown Area, excluding the moratorium areas (Appendix B - Page 2) on the same basis as to restaurants and limited service food establishments, with a report back at the end of the trial period.
D.THAT hotel pubs and lounges (Class A licenses - Appendix A) be allowed to participate in the one-year trial of sidewalk pub patios on the same basis as neighbourhood pubs.
E.THAT any pub sidewalk patio applicant be required tofollow the notification system and public process through the Vancouver Liquor License Commission (VLLC), which is currently in place for an expansion or seat increase for pubs, in addition to meeting the guidelines of the sidewalk cafe program (Appendix C).
F. THAT pub/lounge sidewalk patios close at 8:00 p.m.
G.THAT, in response to complaints or violations, the one year trial period may be terminated with 30 days written notice.
H.THAT should Council approve the expansion of the Sidewalk Cafe Program to both neighbourhood pubs and hotel pub/lounges, an EA II position be created for five months to help administer the trial of pub/lounge sidewalk patios at a cost of approximately $16,000 to be recovered from the anticipated new permit revenue.
I.THAT a temporary Property Use Inspector position be created for 1-year to administer the one year trial of pub/lounge sidewalk patios at a cost of approximately $51,600; 1997 costs to be funded from Contingency Reserve and ongoing costs to be recovered from Business License fees.
J.THAT Council rescind Recommendation B of the "Sidewalk Cafes - Processing of Applications" report passed on February 23, 1988, which designated the City Engineer as signing authority for the Sidewalk Cafe License Agreement, and instead designate the City Engineer and the Assistant City Engineer in Streets as the signing authority, with either having the authority to act individually.
K.THAT late payment charges of $25.00 per month (to a maximum of $50.00) be added to the Sidewalk Cafe (Small) Program to encourage prompt payment of outstanding fees.
L.THAT the minimum fee in the Sidewalk Cafe (Large) Program be $100 per term.
Council has dedicated the 1000 and 1100 blocks of Mainland Street (February 18, 1993) and Hamilton Street (July 19, 1995) loading docks as road. At these times, Council also approved the "Yaletown Dock Guidelines", which include the requirement that any Yaletown sidewalk cafe meet sidewalk cafe guidelines.
On October 26, 1995, Council formalized past practice regarding sidewalk cafes and pubs by affirming the recommendation "THATsidewalk cafe permits continue to be issued to restaurants and limited service food establishments only".
One June 19, 1997, City Council approved the "Theatre Row Liquor Licensing Policy", which may increase the number of neighbourhood pubs and pub/lounges on Granville Street. Council also directed that "the two formal applications received for 65-seat Class "D" (Neighbourhood Pub) Licenses in the 900 Block Granville be referred to the Vancouver Liquor Licensing Commission for consideration at its July 1997 Meeting".
Moratoriums on new or expanded liquor licenses exist for the Downtown Eastside, Gastown, and zoning and policies restrict the location, size, and type of licensed venues in the residential areas of Downtown South (Appendix B).
This report responds to a request from the Yaletown Brewing Company that neighbourhood pubs be permitted to have sidewalk cafes. It also addresses some housekeeping issues that streamline the administration of the Sidewalk Cafe Program.
Both neighbourhood pub and hotel pub/lounge operators and their customers have expressed strong interest in having sidewalk patios that abut their establishments. However, due to concerns regarding noise levels, the number of licensed seats in the downtown area, and the increased possibility of rowdy behaviour, pub/lounge seating on city sidewalk has not, to date, been permitted.
The issues of noise, rowdy behaviour, and the number of licensed seats remain serious concerns, especially where commercial and residential uses co-exist. Staff have noted that most noise complaints are directed at establishments that have operations that resemble "pubs" in behaviour, although they are licensed as restaurants. However, the Downtown area has become an increasingly popular destination and pub operators are under pressure from customers to provide outdoor seating. Currently, only those who have access to available and useable adjacent private property can meet this demand.
Sidewalk Cafes for Pubs/Lounges
Staff have received requests for sidewalk cafes on City sidewalks from both hotel pubs/lounges and neighbourhood pubs. Staff consideration and consultations with other departments indicate that expanding the Sidewalk Cafe Program in this direction will not enhance the program and may lead to less public tolerance for the program as a whole. This program is experiencing growth already (which is partially attributable to the Smoke Free Indoor Air By-law), and public response to this increased use of public space by private concerns is as yet uncertain.
The Chief Constable does not concur with this report for a variety of reasons. Noise and rowdy behaviour associated with the consumption of alcohol make it inadvisable to allow sidewalk cafes at pubs in a dense residential neighbourhood. The potential granting of sidewalk cafe permits, to include hotel pubs in addition to neighbourhood pubs, especially in the Downtown area, causes even greater concern. The Police Department's response is reflective of the predictable concerns of residents in the area proposed for the expansion of the Sidewalk Cafe Program to neighbourhood pubs and hotel pub/lounges.
The Health Department also has concerns regarding noise, and further notes that allowing pubs to have sidewalk cafes will increase the advantage that pubs are already perceived to have over restaurants in terms of the Smoking By-law. They suggest that this issue should not be considered until the 'smoke-free' issues are stabilized.
The Planning and Social Planning Departments are concerned that this change would be premature, since the liquor license strategy for Theatre Row has yet to be fully implemented, there is a proliferation of licensed seats in the downtown, and there are potential impacts on nearby residents. Deferring this issue until the new downtown liquor license policies and policing strategy have had enough time to be tested is felt to be more appropriate.
The Chief License Inspector anticipates that pub/lounge patios will have an impact on the strategy for implementation of the Granville Street Entertainment District and the two new neighbourhood Pub Applications being considered in this area.
Currently, there are fourteen (14) Class D neighbourhood pub licenses, two of which are in the Downtown area. One of these, Quarterdeck Brewing Co. (Steamworks), already has outdoor seating on adjacent private property. The other, Yaletown Brewing Co., has been refused a permit to operate a sidewalk cafe adjacent to their pub on the Yaletown docks, which are now designated as street allowance. (Because the docks are street allowance, they are treated as sidewalks despite some significant differences between them and a typical sidewalk, the most notable of these being the grade separation between the docks and the roadway.) The Yaletown Brewing Co. has been issued a permit for a very large sidewalk cafe (1,275 sq. ft.) adjacent to their restaurant at this location. A third downtown neighbourhood pub on Beatty Street has received Council approved and will be open for business in the next few months. Therefore, at this time, although there is only one eligible neighbourhood pub in the Downtown Area, a second one will open shortly, and the VLLC will consider licensing two more in July.
Due to the recently approved Theatre Row Liquor Licensing Policy, it is anticipated that the number of neighbourhood pubs in the Downtown area may further increase. In addition, allowing outdoor seating may work against other measures (e.g. limiting line-ups and similar street congregations) that the City is taking to minimize the impact of pubs on the street.
Staff also have received requests from hotel pubs/lounges for sidewalk seating. Currently, a request from the Dominion Hotel (Lamplighter Pub) is pending Council's disposition of this report. It is anticipated that hotel pubs would strongly oppose the extension of the Sidewalk Cafe Program to include neighbourhood pubs while it continued to exclude hotel pubs. There are currently approximately 150 hotel pubs/lounges in the Downtown area. However, many of these are in areas which have a moratorium on seating increases, and will, therefore, not be eligible for consideration. Approximately 60 hotel/pubs would be eligible for consideration.
Staff from Engineering Services, Planning, Social Planning, Permits and Licenses, and the Police and Health Departments have concluded that extending the Sidewalk Cafe Program to include Sidewalk Pub Patios would not be appropriate and therefore recommend that Sidewalk Cafes continue to be limited to those having restaurant or limited service food establishment licenses.
However, if Council wishes to permit neighbourhood pubs and/or hotel pubs/lounges to operate sidewalk patios on City sidewalks, the General Manager of Engineering Services offers the following suggestions for consideration.
Council may wish to grant the request of the Yaletown Brewery Company to have a sidewalk pub patio on an exceptional basis for a one-year trial period; however, it is anticipated that other neighbourhood pubs and hotel pubs/lounges would want to be included. Therefore, options B through D are put forward for Council's consideration. In any of these cases, it is suggested that expansion to the Sidewalk Cafe program be allowed on a trial basis for one year in the Downtown Area, with the exception of areas currently within liquor license moratoriums (Appendix B), following the same guidelines that apply to large sidewalk cafes (Appendix C).
Permitting operation only in this limited area and only on a trial basis will, to some extent, acknowledge the concerns, regarding the potential for increased noise and rowdy behaviour. The moratorium areas should be excluded since to allow increased activity in these areas by allowing extension onto the sidewalk, whether or not the number of seats actually increases, would contravene the intent of the moratoriums. In addition, the HealthDepartment has recommended a closing time of 8:00 p.m. for any Sidewalk Pub Patios, and as with restaurant sidewalk cafes, no music of any kind will be allowed outside.
It is further suggested that the neighbourhoods surrounding neighbourhood and hotel pubs/lounges be permitted input into the process of permitting sidewalk pub patios. Currently, neighbourhood pubs that wish to expand their area or increase the number of seats are required to apply through a liquor license process. The City then notifies all neighbours within a 1000 foot radius through a mail drop, which informs them of the date that the request will go before the VLLC. Any interested neighbour then has the opportunity to address the VLLC with their concerns before the VLLC makes a recommendation to Council on the application. Since a sidewalk cafe permit would allow pub activity to expand (in this case, on to public property) and may increase the number of seats, it is recommended for consideration that any hotel pub/lounge or neighbourhood pub operator be required to follow the same process in order to participate in this trial.
The Directors of Planning and Social Planning have suggested the necessity for a mechanism to end trials which are not successful. Therefore, in cases where there are noise complaints or other violations, Council might consider ending the trial by giving the operator 30 days written notice during which time they may arrange to remove the patio from the sidewalk. City crews would remove any patio items remaining on the sidewalk after the 30 days notice had elapsed.
If the trial is implemented, the General Manager of Engineering Services will report back to Council at the end of the one-year trial.
If the Sidewalk Cafe Program is to be expanded to hotel pubs/lounges and neighbourhood pubs on a trial basis, it is anticipated that at least 35 of these pubs/lounges would apply. The number of sidewalk cafes has been steadily increasing with an addition of only one-half of an EA I position since 1972 (see Appendix D). Furthermore, the Engineering staff have also taken on additional functions that were previously handled by other departments as the program has been streamlined. Although the program is very successful, it is anticipated that current staffing levels could not absorb increases in workload without negative effects on the functioning of the program.
Therefore, it is recommended that, if Council chooses to allow the trial for both hotel pubs/lounges and neighbourhood pubs, a temporary EA II position be implemented for five months with approximate costs of $16,000 to be recovered from the new revenues to the Sidewalk Cafe Program. The five-month period will allow for processing applications in a timely manner, and for monitoring the initial implementation.
Costs would be offset by the trial itself if there were 35 successful applicants who operated approximately 75 square-foot sidewalk cafes for the two warmer terms of the year and half of these closed during the winter term (35 x 75 sq.ft. x 2.5 terms x $2.50/sq.ft./term = $16,406). This estimate is conservative in comparison to sidewalk cafes currently in the program as to square footage and the terms of operation.
If the trial were extended to neighbourhood pubs only, it could be managed by existing staff, although there would be some impact on processing times.
The Chief License Inspector also anticipates that an additional Property Use Inspector would be required for the length of the trial at an approximate cost of $51,600, if hotel pubs/lounges take part in a trial of sidewalk pub patios, subject to review by the budget office for justification of need. The Property Use inspection program is funded primarily from Business License fees and any ongoing costs of this position will be recovered in this way. However, 1997 costs will have to be provided from Contingency Reserve.
Delegation of Signing Authority
In order to expedite the processing of legal agreements between the City and sidewalk cafe operators, it is recommended that Council rescind Recommendation B of the "Sidewalk Cafe - Processing of Applications" report (passed February 23, 1988), which approved only the City Engineer to sign Sidewalk Cafe License Agreements, and instead approve the City Engineer's ability to designate the Assistant City Engineer in Streets to sign on his behalf.
As an incentive to encourage the timely payment of fees in the Small Sidewalk Cafe Program, it is recommended that a late payment penalty be instituted. Staff have noted that it is difficult to collect these fees if the operator enjoys the benefits of having a sidewalk cafe for a long period before they are paid for. This situation is complicated by frequent changes of ownership. Interest charges, such as those paid in the Large Sidewalk Cafe Program, are not suitable for small sidewalk cafes because their fees ($200 per year) are generally significantly lower than for the large sidewalk cafes. Therefore, it is recommended that a charge of $25.00 per month (to a maximum of $50.00) be applied to payments over one month late.
Several sidewalk cafes in the Large Sidewalk Cafe Program are, infact, quite small due to their particular circumstances (for instance, where part of the sidewalk cafe is on private property), which can result in them paying lower fees that those in the Small Sidewalk Cafe Program. However, it is felt that this program, which requires more staff time and permits greater use of the sidewalk (i.e., railing and umbrellas) should not have lower fees than those paid by Small Sidewalk Cafes. Therefore, it is recommended that the minimum fee for the Large Sidewalk Cafe Program be $100 per term, since most Sidewalk Cafes operate for at least two terms per year.
LIQUOR CONTROL AND LICENSING BRANCH
CATEGORY A:Class "A" Licence (Hotels, Resorts, Clubs, Recreational Centres, Aircraft, Trains, Motor Vessels, Airports, Municipally and Provincially owned Cultural Centres, Universities and Military Messes)
CATEGORY B:Class "B" Licence (Restaurants)
CATEGORY C:Class "C" Licence (Cabarets)
CATEGORY D:Class "D" Licence (Neighbourhood Public Houses)
CATEGORY E:Class "E" Licence (Sports Stadiums and Concert Halls)
CATEGORY F:Class "F" Licence (Marine Public House)
CATEGORY G:Class "G" Licence (Licensee Retail Stores)
CATEGORY H:Class "H" Licence (Licensee Retails Stores, Non-Conforming Hotels)
"Downtown" Area (As defined in Street & Traffic By-law #2849)
"Downtown" means the area generally shown within the heavy black outline on the diagram below, but specifically described as that area bounded by the west property line of Main Street from Burrard Inlet to National Avenue; the projection westward of thenorth property line of National Avenue from Main Street to False Creek; the north shoreline of False Creek from National Avenue to the extension southward of the west property line of Burrard Street; the west property line of Burrard Street from False Creek to Robson Street, the south propety line of Robson Street from Burrard Street to Denman Street, the west propety line of Denman Street, the west property line of Denman Street from Robson Street to Georgia Street; the south property line of Georgia Street from Denman Street to Chilco Street, the east property line of Chilco Street and its extension north from Georgia Street to Burrard Inlet; Burrard Inlet from Chilco Street to Main Street.
POLICY FOR SIDEWALK CAFES (LARGE)
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, although planters may not form a continuous solid barrier.
8.be constructed so that it can be completely removed within 24 hours if required. Decks, platforms and structures are NOT permitted except 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 may be used but may not be attached to railings. If a canopy or an awning is used, it may NOT use supports which rest on City street allowance and appropriate permits must be obtained.
10.after October 31st each year, you may either:
a)leave only 3 tables and 6 seats, in accordance with the guidelines for small sidewalk cafes, or
b)pay the winter term fee by November 1st if you wish to leave any railings or structures in place.
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 a permit fee based on location and square footage ($100 of this is paid upon application and is non-refundable). Payment may be by post-dated cheque and is due before the opening of each term (on March 1, July 1 and November 1), provided that no post-dated cheque is under $200.00.
PLEASE NOTE:Inspections of the site may be carried out by Engineering Services before, after, and during 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.
PARTS OF APPENDICES A AND B, AND D, are on file in City Clerk's Office.
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