Mayor and Council Inder Litt, Senior Business Licence Inspector Consolidated Business Licence Bylaw No Bylaw Amendment
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1 So 1~.A ABBOTSFORD Report No. EDP Date October 1, 2012 File No: COUNCIL REPORT Executive Committee To: From: Subject: Mayor and Council Inder Litt, Senior Business Licence Inspector Consolidated Business Licence Bylaw No Bylaw Amendment RECOMMENDATIONS 1. THAT Report No. EDP , dated October 1, 2012, from the Senior Business Licence Inspector, regarding proposed changes to the Business Licence Bylaw, be received; 2. THAT Bylaw No , "Business Licence Bylaw, 2006, Amendment Bylaw No.8", proceed for three readings at the next Regular meeting of Council; and 3. THAT the Mayor and Corporate Officer be authorized to execute all documents related to this matter. BACKGROUND Business Licence Bylaw 2006, Bylaw No regulates economic development and land use in the City of Abbotsford. In order to keep fees current and cost effective, staff recently undertook a survey of business licence fees and bylaws in neighbouring municipalities including Chilliwack, Mission, City and Township of Langley, Surrey, Maple Ridge, Burnaby and Richmond. The last increase occurred in 2007 when all development fees were increased by 4%. Results of the survey are summarized in Appendix A. At the Executive Committee meeting of June 11, 2012 Council directed staff to refer the proposed bylaw amendment to the Audit and Finance Committee for further discussion. Staff was also asked to consult with the Abbotsford Chamber of Commerce. The amended proposal reflects the revised changes that were recommended by these committees. ANALYSIS The proposed bylaw amendment includes fee increases for specific business types, some housekeeping amendments and two new licence categories. The proposed changes will increase customer service by providing clear and concise wording, reflect changes in Provincial legislation and align fees with neighboring communities. The rationale for the amendments is attached as Appendix B while Appendix C compares existing fees with the proposed new fees. The proposed changes will; o clarify sections relating to agri-food processing and liquor establishments;
2 Report No. EDP Page 2 of 3 o o o o o amend business types to reflect Provincial Government designations pertaining to the Liquor Control and Licensing Act and Gaming Policy and Enforcement Branch; align business licence fees and structure with surrounding communities; create separate fee structures for commercial and industrial use; require business licences for automated teller machines not affixed to a financial institution and oil storage plants and/or pipeline distribution companies; increase fees for specific categories. City staff consulted with the Abbotsford Chamber of Commerce on the proposed changes to the bylaw. The Chamber acknowledged the rationale for the fee increases and was generally supportive of the proposed bylaw. However, the Chamber suggested that in future, the City conduct annual fee reviews to avoid large increases. FINANCIAL PLAN IMPLICATION Fees for business licenses collected in 2011 totaled $893, The proposed increase to existing licence fees and addition of two new business types could raise revenue by approximately $150,000. The majority (90%) of businesses would see an increase of $10 to $20 a year. The 2012 Budget anticipates this increase. STRATEGIC DIRECTIONS The proposed changes to the Business Licence Bylaw align with the City's Strategic goal to achieve economic balance. COMMUNICATION PLAN Changes will be publicized in the local newspaper and on the City site home page. In addition, information will be sent to business owners four weeks before expiry of their business licence.
3 Report No. EDP Page 3 of 3 SUMMARY The proposed housekeeping changes and new additions will make the bylaw clear, equitable and up-to-date. Fee increases and amendments will provide cost recovery and align our fees and structure with neighbouring communities. p rep&.k er~ Senior Business Licence Inspector atsoanes General Manager, Finance & Corporate Services Attachments
4 Appendix A Business Licence Fee Data Comparison 2012 CATEGORIES ABBOTSFORD SURROUNDING MUNICIPALITIES Current Proposed Burnaby Chilliwack City Lang.. Maple R.. Misson Richmond Surrey T.. Langley Comments Home Business $120 $130 $92 $100 $161 $110 $148 $121 $92 ATM $0 $140 $64.90 $110 $148 $116 $ $ Commercial < 801 m 2 $120 $140 $426 $300 $161 $200 $148 $193 $230 $277 Small business) Commercial 801-1,800 m $180 $200 $350 $148 $390 Commercial >1,800 m 2 $240 $1,000 $902 $1,000 $161 $2,738 $148 $1,570, $1,133 $390 Industrial < 801 m 2 $120 $140 $180 $148 $240 Industrial 801-1,800 m 2 $180 $200 $200 $148 $315 Industrial >1,800m 2 $240 $300 $1,000 $148 $390 Food Primary $270 $400 $365 $406 $204 $438 $148 $946 $573 $ Licencee Store $270 $500 $161 $148 $573 $525 Liquor Primary $520 $1,500 $2,577 $1,000 $4,457 $1,200 $148 $1,902 $1,721 $2,500 Real Estate Office $120 $500 $426 $ $161 $500 $148 $1,317 $1,055 $165 Base Rate $120 $140 $100 $161 $110 $148 $ *Licensing requirements and fee schedules vary widely among municipalities and comparable values were unavailable for a number of categories (Small business) is defined as under 457.2m 2 /1500 sq ft with 1-10 employees CATEGORIES ABBOTSFORD SIMILAR FACILITIES I Current I Proposed I Burnaby I Kamloops Oil Storage/Pipeline I $0 I $3,000 I $3,000 I $460 CATEGORIES ABBOTSFORD COMPARABLE MUNICIPALITIES Current Proposed Chilliwack Kamloops Kelowna Maple R.. Surrey Bingo/Gaming $240 1 $500 1 $ , $540 $3,000 1,093 Inc!..liqu9r prim?ry fee $760 $2,000 1 Not including liquor primary fee
5 4'tnreaa,... ~r';~ ABBOTSFORD Appendix B Rationale for Proposed Bylaw Amendments Section Part 5 - Licence Requirement (New) Part 5 - Licence Requirement 5.2 (a) - (Amend) SUMMARY OF BUSINESS LICENCE BYLAW AMENDMENTS AMENDMENT RATIONALE Add: New business type. "A licence is required for each Automated Teller Machine not affixed to a financial institution. " Amend 5.2 (a) to read: "an agri-food processing facility having a floor area of less than 600m2 on property zoned Agricultural, as defined in the City's Zoning" Location clarification for bylaw interpretation. Part 11 - Liquor Establishments (Amend) Schedule "A" Definitions (Delete) Schedule "8" - Business 1. - (Delete) Amend to read: "The following conditions / terms apply to all businesses licensed under the Liquor Control and Licensing Act of British Columbia... " Delete: Food Primary (Lounge) Liquor/Food Primary Delete: Food Primary (Lounge) $ Liquor/Food Primary $ To include conditions / terms to all businesses licensed under the Liquor Control and Licensing Act. Definition removed from Zoning Bylaw, no longer used by Provincial Liquor Control and Licensing Branch. Definition removed from Zoning Bylaw, no longer used by Provincial Liquor Control and Licensing Branch. Schedule "B" - Business Delete: Housekeeping, term is outdated. Cabaret $1, (Delete) Schedule "8" - Business Delete: Housekeeping, fee is not enforced. Parks, Recreation and $1, (Delete) Culture Facilities
6 AS t ~: 1:'~...1,.. 4' ABBOTSFORD Appendix B Rationale for Proposed Bylaw Amendments 1. - (New) (Businesses not covered under existing types) Add: Automated Teller Machine Oil Storage Plant and/or Pipeline Distribution $140 $3,000 Addition of these two business types will clarify licensing requirements (Add) Amend by adding: Accessory Home Occupation $130 Amend "Apartment, Hotel, Motel, or Resort (more than 10 units) to read: Create a distinct category for this type of small business and charge $10 less than proposed base rate. Fee's based on number of units (Amend) Apartment, Hotel, Motel, or Resort (11 to 100 units) $220 Apartment, Hotel, Motel, or Resort (101 units or more) $ (Amend) Amend Auto Recycler Licence Fee to read: Based on Industrial Use (m 2 /sq. ft of usable area, not described elsewhere) Ensure standardized fee for all Industrial Use. Amend by adding: Bingo Hall and Community 1. - (Add) Gaming Centre $500 Create a distinct category and fee. Amend Licence Fee for listed Type of Licence: To keep fees current. Licencee Retail Store $ (Amend) Pawn Shop $250
7 ABBOTSFORD Appendix B Rationale for Proposed Bylaw Amendments Amend "Food Primary" to read: Smaller restaurants will now pay less then larger restaurants. 1. (Amend) Food Primary up to 30 seats $280 (Restaurant licensed to serve Liquor) Food Primary 31 or more seats (Restaurant licensed to serve Liquor) $400 Amend by adding: Create a distinct category and fee. Police resources are used to Scrap Metal Dealer $3,000 investigate thefts, proactive 1. (Add) enforcement and management of daily submissions from operators required under City Bylaw and new Provincial Legislation Bill , Metal Dealers and Recyclers Act. Schedule B -Business 1. (Amend) Amend Commercial Use or Industrial Use to read : Commercial Use $140 Up to 800m 2 / 8621 sq. ft of usable area, not described elsewhere Commercial Use $ to 180m 2 / ,385 sq. ft of usable area, not described elsewhere Commercial Use $1, m 2 /19,386 sq. ft and over of usable area, not described elsewhere Industrial Use $140 Up to 800m 2 / 8621 sq. ft of usable area, not described elsewhere Industrial Use $ to 180m 2 / ,385 sq. ft of usable area, not described elsewhere Industrial Use $ m 2 /19,386 sq. ft and over of usable area, not described elsewhere The proposed amendments to the fee structure will separate Industrial Use and Commercial Use.
8 ABBOTSFORD Appendix 8 Rationale for Proposed Bylaw Amendments 1. (Amend) Amend "Liquor Primary" to read: Bar Watch Program Members $1,200 Non Bar Watch Program Members $7,000 Encourage membership in Bar Watch Program. the Schedule" B" -Business 1. (Amend) Amend "All other business not listed above" fee and to include: All other business not listed above (Base Rate) Licence Fee: $140 To keep fees current. Amend "Ice Cream Vendors, Mobile" Licence Fee: $140 Reflects increase in base rate. 1.(Amend) 1. (Add) 1. (Add) Amend by adding: Real Estate Office 1-5 agents $140 Real Estate Office 6 or more agents $500 Amend by adding: Restaurant (Not licenced to serve liquor) $140 Small Real Estate offices will pay the base rate while large offices will pay a higher fee. Create a distinct category. Amend "Exhibition Complex" Licence Fee: $1, (Amend) Vendors and show operators are able to operate under Tradex and AESC licences and need not apply for an individual licence. Amend ''Re-Inspection Licence Fee" to read: Align fee with the Building Department Re-Inspection Fee. 3. (Amend) As per Building Bylaw Ensure standardized fee for Re Inspection within the Department.
9 Appendix C ~ Rationale for Proposed,L\BBOTSFORD Bylaw Amendments Schedule "B" - Business 1. The fees payable for Business Licences shall be as follows: Type of Licence Current Fee Proposed Fee Add - Accessory Home Occupation $ $ Accessory Home Occupation - Farm Equipment Rep~ir $ No Change Amusement Facility $ No Change Apartment, Hotel, Motel, or Resort (5 to 10 units) $ No Change Amend - Apartment, Hotel, Motel or Resort (11 to 100 units) $ No Change Amend - Apartment, Hotel, Motel or Resort ( 101 units or $ $ more) Amend - Auto Recycler $ Based on Industrial Use (m 2 / sq. ft of usable area)(not described elsewhere) New - Automated Teller Machine $0 $ Add - Bingo Hall and Community Gaming Centre $ $ Delete - Cabaret $1, Delete Carnival, per day $ No Change Charitable Activity (Temporary) $65.00 No Change Charitable Sales and Services $75.00 No Change Amend - Commercial Use or Industrial Use $ Delete (0 to 800 m2 / 8621 sq. ft of usable area) (not described elsewhere) Amend - Commercial Use $ (0 to 800 m 2 / 8621 sq. ft of usable area) (not described elsewhere) Amend - Industria! Use (0 to 800 m 2 / 8621 sq. ft of usable area) (not described elsewhere) $ I I i
10 Appendix C &. ".~\(..'l~ ABBOTSFORD Rationale for Proposed Bylaw Amendments Amend - Commercial or Industrial Use $ Delete (801 to 1800 m 2 / ,385 sq. ft of usable area) (not described elsewhere) Amend - Commercial Use $ (801 to 1800 m2/ ,385 sq. ft of usable area) (not described elsewhere) Amend - Industrial Use (801 to 1800 m 2 / ,385 sq. ft of usable area) (not.$ described elsewhere) Amend - Commercial or Industrial Use $ Delete (1801 m2/ 19,386 sq. ft and over) )not described elsewhere) Amend - Commercial Use $1, (1801 m2/ 19,386 sq. ft and over) )not described elsewhere) Amend - Industrial Use $ (1801 m2/ 19,386 sq. ft and over) )not described elsewhere) Direct Sellers $ No Change Amend - Exhibition Complex $1, $1, Film Production $ No Change Financial Institution $ No Change Flea Market $ No Change Amend - Food Primary $ $ Food Primary up to 30 seats (Restaurant licensed to serve liquor) $ $ Food Primary 31 or more seats (Restaurant licensed to serve liquor) Delete Food Primary (Lounge) $ Delete Fuel Service Station with or without Convenience Store $ plus No Change $20.00 per Fuel Dispenser Amend - Ice Cream Vendors, Mobile $ $140.Amend - Licencee Retail Store $ $400.00
11 Appendix C t&t> ~!l.>~~;1* Rationale for Proposed ABBOTSFORD Bylaw Amendments Amend Liquor Primary $ New - Bar Watch Members $1, New - Non Bar Watch Members $7, Delete - Liquor I Food Primary $ Delete Non-Permanent Commercial Sales $80.00 No Change New - Oil Storage Plant and lor Pipeline Distribution $0 $3, Delete - Parks, Recreation and Culture Facilities $1, Delete Amend - Pawn Shop $ $ Amend - Real Estate Office 1-? agents $120 $140 Amend - Real Estate Office 6 or more agents $ $ Recreational Facility $ No Change Amend -Restaurant (Not licenced to serve Liquor) $ $ Restaurant with Drive up Window $220 No Change Amend-Scrap Metal Dealers $120-$185 $3,000 Second Hands Goods $ No Change ----' Supportive Recovery Use $ No Change Trade Show (other than in Licensed Exhibition Complex), $45.00 No Change per day Amend - All other businesses not listed above (Base Rate) $ $ Administration fee; additional copy of an issued licences $25.00 No Change 3. Amend - Re-inspection fee As per Building Bylaw
12 CITY OF ABBOTSFORD BUSINESS LICENCE BYLAW, 2006, AMENDMENT BYLAW NO.8 Bylaw No The Council of the City of Abbotsford, in open meeting assembled, ENACTS AS FOLLOWS: 1. CITATION Bylaw No may be cited as "Business Licence Bylaw, 2006, Amendment Bylaw NO.8". 2. AMENDMENTS Bylaw No , cited as "Business Licence Bylaw, 2006", as amended, is further amended by: (a) deleting and replacing Section 5.2 (a) as follows: "(a) an agri-food processing facility having a floor area of less than 600 m 2 on property zoned Agricultural, as defined in the City's Zoning Bylaw;"; (b) adding a new Section 5.10 as follows: "5.10 A licence is required for each Automated Teller Machine not affixed to a Financial Institution."; (c) deleting and replacing Section as follows: "The following conditions/terms apply to all businesses licenced under the Liquor Control and Licensing Act of British Columbia, including but not limited to terms and conditions in the nature of:"; (d) Deleting Definitions from Schedule "A" as follows: ''''Food Primary (Lounge) has the meaning attributed to it in the City's Zoning Bylaw;" and ""Liquor Food Primary has the meaning attributed to it in the City's Zoning Bylaw;"; and
13 CITY OF ABBOTSFORD BUSINESS LICENCE BYLAW, 2006, AMENDMENT BYLAW NO.8 Bylaw No Page 2 (e) deleting and replacing Schedule "B" with the attached Schedule "B". READ A FIRST TIME this READ A SECOND TIME this READ A THIRD TIME this ADOPTED this day of day of day of day of,2012,2012,2012,2012 R. Bruce Banman Mayor William Flitton Corporate Officer
14 CITY OF ABBOTSFORD BUSINESS LICENCE BYLAW, 2006, AMENDMENT BYLAW NO.8 Bylaw No Page 3 SCHEDULE "B" - BUSINESS LICENCE FEES 1. The fees payable for Business Licences are as follows: Type of Licence Licence Fee Accessory Home Occupation $ Accessory Home Occupation - Farm Equipment Repair $ Amusement Facility $ Apartment, Hotel, Motel, or Resort (5 to 10 units) $ Apartment, Hotel, Motel, or Resort (11 to 100 units) $ Apartment, Hotel, Motel, or Resort (101 units or more) $ Auto Recycler Based on Industrial Use (m 2 Isq. ft of usable area, not described elsewhere) Automated Teller Machine $ Bingo Hall and Community Gaming Centre $ Carnival, per day $ Charitable Activity (Temporary) $65.00 Charitable Sales and Services $75.00 Commercial Use $ Up to 800 m 2 1 8,621 sq. ft of usable area, not described elsewhere Commercial Use $ to 1,800 m 2 1 8,622-19,385 sq. ft of usable area, not described elsewhere Commercial Use $1, ,801 m 2 119,386 sq. ft and over of usable area, not described elsewhere Industrial Use $ o to 800 m 2 1 8,621 sq. ft of usable area, not described elsewhere Industrial Use $ to 1,800 m 2 1 8,622-19,385 sq. ft of usable area, not described elsewhere I ndustrial Use 1,801 m 2 119,386 sq. ft and over, $ not described elsewhere Direct Sellers $ Exhibition Complex $1, Film Production $ Financial Institution $520.00
15 CITY OF ABBOTSFORD BUSINESS LICENCE BYLAW, 2006, AMENDMENT BYLAW NO.8 Type of Licence Bylaw No Page 4 SCHEDULE "B" - BUSINESS LICENCE FEES (cont'd) Licence Fee Flea Market $ Food Primary up to 30 seats (Restaurant licensed to serve liquor) $ Food Primary 31 or more seats (Restaurant licensed to serve liquor) Fuel Service Station with or without Convenience Store $ $ plus $20.00 per Fuel Dispenser Ice Cream Vendors, Mobile $ Licensee Retail Store $ Liquor Primary Bar Watch Program - Members $1, Bar Watch Program - Non Members $7, Non-Permanent Commercial Sales $80.00 Oil Storage Plant and/or Pipeline Distribution $3, Pawn Shop $ Real Estate Office (1 to 5 agents) $ Real Estate Office (6 or more agents) $ Recreational Facility $ Restaurant (Not licenced to serve liquor) $ Restaurant with Drive-up Window $ Scrap Metal Dealers $3, Second Hand Goods $ Supportive Recovery Use $ Trade Show (other than in Licensed Exhibition Complex), per day $45.00 All other Businesses not listed above (Base Rate) $ Administration Fee, Additional Copy of an Issued Licence: $ Re-lnspection Fee As per the City's Building Bylaw
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