Our Focus: Your Future. Council receive Administrative Report No. CAO as the report of the Business Licencing Working Group, and
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1 Town of Fort Erie Our Focus: Your Future Office of the CAO Prepared for Council-in-Committee Report No. CAO Agenda Date October 15, 2007 File No Subject STREAMLINING THE BUSINESS LICENCING PROCESS Recommendations THAT THAT THAT THAT Council receive Administrative Report No. CAO as the report of the Business Licencing Working Group, and Council direct staff to proceed with the implementation of the process improvements outlined in the report, and the Town Solicitor be directed to prepare a new business licencing by-law or, alternatively, Council advise staff of preferred business licencing alternatives. Relation to Council s Corporate Strategic Plan Priority: Economic and Business Development Goal: B1 Increase Employment Opportunities within Fort Erie Initiative: B1.1 Streamline business licencing and permitting processes to facilitate business expansion and development. List of Stakeholders - the public those applying for the licence, patrons of the business and those that cannot access the business - neighbours - other business owners - Region s Public Health - Police Services - Human Society - Suppliers to Businesses - BIA s - Landlord - Members of Council - Ministry of Transportation (new businesses on Garrison Road) - Niagara Parks Commission (new businesses accessed from the parkway) - Staff Prepared by: Original Signed Bev Bradnam Executive Assistant to the CAO and Policy Analyst Approved by: Original Signed Harry Schlange, MBA Chief Administrative Officer
2 Office of the CAO Page 2 of 8 Report No. CAO Purpose of Report The purpose of this report is to provide Council with the review of the Business Licencing process by the Working Group comprised of staff from the Fire Department, By-law Enforcement, Building, Planning, EDTC, CAO s office and Legal & Legislative Services. Analysis Business Licencing The former Municipal Act referred specifically to business licencing and included imposing conditions for one or more of the following purposes: 1. Health and Safety 2. Nuisance Control 3. Consumer Protection. Business Licencing is no longer mandatory but is a discretionary activity carried on by many local municipalities. Historically, most municipalities do licence businesses; however, the scope varies considerably from municipality to municipality and usually reflects a particular problem within that municipality. The Town presently licences between 250 and 300 businesses per year of those licences are new businesses, with the remainder being renewal licences or a transfer of business. All licence applications presently require inspections or dialogue with Zoning, Building, Fire, Niagara Region Public Health and/or Police Services and in some instances the SPCA, prior to approval. Working Group Review to Streamline the Process In July 2007 the CAO requested that a review of the business licencing process occur in light of vacancies in the Fire Department and in concert with Council s Strategic Plan objective to streamline the business licencing process. The Working Group participated in four team meetings, facilitated by the EA to the CAO and Policy Analyst. The initial meeting determined: - who the stakeholders are; - the positives of licencing what purpose does it serve; - difficulties with the present workflow; and - what the ideal business licencing process would look like. Key principles of the review were to:
3 Office of the CAO Page 3 of 8 Report No. CAO review the process from the customer s viewpoint; - create efficiencies internally while increasing effectiveness of the service to the public; - ensure value is delivered horizontally across the Corporation and that we understand each other s roles; - take into account current business realities (do more with the same resources); and - engage the employees who are involved in the process to provide their input into the redesign. The team looked at time factors to perform inspections and the timing of renewals; education of business owners as to what is required in order to comply with the licencing by-law; the rationale of who and what we licence ie. is it legally compliant, the need to prioritize based on the health and safety of our residents; mitigating risks for the Town and by-law implications related to meeting the Building Code. It was agreed that licencing businesses in the Town is still an important task as it helps guide perspective business owners and prompts inquiries as to what other requirements they may need to meet (GST/PST vendor requirements), identifies potential hazards in the community, allows for contact information for after hours emergency use, helps improve the business area, provides confidence to the consumer knowing the business is licenced, and assists the Region of Niagara as our licence process triggers their health inspections. Review of What We Licence The Team reviewed the present by-law and applicable schedules to determine if there were businesses that we should no longer be licencing or there were some that we should have a separate schedule for. Under the present by-law all new businesses require licences, with a few exceptions (professional businesses, home occupations, etc.). The Working Group felt that only those new businesses that were governed by a schedule should require licencing. Discussion took place regarding home occupations and it was agreed that most municipalities do not licence home occupations, the Town does not presently have enough staff to complete this daunting task and there may be legal implications in entering private homes for inspections. The Team undertook a review of all new licences approved over the past three years to determine if there were any new businesses that were not captured in a schedule but should be. The Team felt that new schedules should be considered for: 1) Personal Service groups that would include aestheticians, spas, salons (hair and nail), tattoo parlours, massage parlours, gyms and tanning salons. The Region of Niagara s Public Health also requires inspection approval before a business licence is issued for these specific services. 2) Pet Services which would include doggy daycares and pet groomers. Kennels are presently licenced through the SPCA.
4 Office of the CAO Page 4 of 8 Report No. CAO Suggested Process Improvement: That the Business Licencing By-law include new schedules for Personal Service Groups and Pet Services. The following table outlines what schedules the Team felt are still applicable and those they feel are no longer valid. Schedule Retain/ Comments Remove 1 New Licences Remove Recommendation to discontinue licencing all new businesses. Only licence those that are governed by a schedule in the licencing by-law (Schedules 2, 4, 5, 6, 8, 9, 10 and 11 below and proposed new schedules for Personal Service Groups and Pet Services) 2 Amusement Arcades Retain Retain schedule further consideration be given as to what the conditions for approval are. Some discussion took place regarding police checks, etc. It was noted that in continuing to licence amusement arcades, the police would still receive information regarding the applicant. 3 Auctioneer Remove Present schedule states that an auctioneer needs to be a member of the Association of Auctioneers. Usually are one day events and difficult to enforce. Recommendation to discontinue. 4 Bed & Breakfast Retain Bi-annual licencing and inspection. Remove note 4(h) from the present by-law related to MFIPPA. 5 Bill Distributors Retain No further comments 6 Hawkers & Retain Would include the horse and buggy business. Pedlars 7 Pawn Brokers Remove Region licences second hand shops, which also includes pawn brokers. 8 - Refreshment Vehicles, Cycles and Carts Retain Important to conduct a fire inspection. 9 Residential Emergency Hostel 10 Restaurant and Fresh Food Establishments 11 Second Level Lodging Homes Retain Retain Retain Even though we presently only have one, the regulations contained in the schedule are important to adhere to if we have a request for any additional emergency hostels. Include convenience stores/corner stores because they sell food as well as fireworks. The regulations contained in the schedule are important to adhere to if we have a request for any additional second level lodging homes. Suggested Process Improvement: That the following be removed from the Business Licencing By-law schedules: 1) New Licences 2) Auctioneers 3) Pawn Brokers; and That only new businesses that have a corresponding schedule be required to obtain a business licence.
5 Office of the CAO Page 5 of 8 Report No. CAO Timing of New Inspections new licence applications are received annually but are received at different times throughout the year. The Working Group feels that it is still important to conduct inspections on new businesses (as are required under revised schedules) prior to business licencing approval to ensure compliance with Fire and Building Codes as well as ensuring that the property is zoned properly for the intended use. The Region s Public Health Department has also requested that they provide inspection approval on all new licence requests for aestheticians, spas, salons (hair and nail), tattoo parlours, massage parlours, gyms and tanning salons. Timing of Renewal Inspections One of the main issues that the Team felt bottlenecked the business licencing process was the length of time for the renewal application to be approved, mainly because of the 1-2 month time frame required for inspections. In 2007, renewal inspections were required on 134 businesses made up of second level lodging homes, refreshment vehicles, restaurants/ fresh food establishments, residential emergency hostel and bed and breakfasts. These renewals are applied for at the beginning of each year and have historically taken between 1-2 months to complete all inspections in order to comply with the business licencing requirements. The Team considered staggering renewals; however upon further review determined that it may be best to approve the renewal application and then forward the specific information to the applicable departments or agencies. As Fire and Building both have compliance requirements under the Fire and Building Codes, the business licence will trigger those inspections. A new application form is being created which will state You may need to comply with additional requirements under the Fire Code, Health Code and Police. The information contained in your licence application will be provided to these agencies for their information. This suggestion differs from the present process where the applicant must contact each department and arrange for an inspection prior to approval of the licence. The present system places the onus on the applicant to arrange all inspections. With the renewal application improvement suggested, the applicant would complete the application form, pay the licencing fee and, dependent on any modifications to the business, would receive their licence and be advised that they will be receiving an inspection from the Fire Department and other agencies to ensure compliance. This improvement would allow the Fire and Building departments to conduct their inspections based on their own time frames and workloads and can be spaced throughout the year. Of course, if there have been any modifications to the building or changes in the use of the property, then Fire and Building would make the inspection a priority.
6 Office of the CAO Page 6 of 8 Report No. CAO If the business owner is found to be non-compliant during the annual inspection, the Fire Prevention Policy and Building Code provides for specific compliance timelines. If the business owner continues to be non-compliant the business licence may be revoked. Suggested Process Improvement: That all renewal or transfer of business licencing applications be approved as long as they have not modified the building and are still compliant with the zoning by-law, and the applicable department and agencies be so notified so that they can arrange inspections throughout the year. This will result in the applicant waiting a maximum of 72 hours for licence approval rather than the present 1-2 months presently experienced by the business owner, without jeopardizing health and safety as all food establishments/food preparation businesses and Personal Service Groups will still receive an annual inspection from the Fire Department and Public Health/Police Services, as required. Appendix 1 provides two graphics depicting the present process and the proposed process and applicable workflows. Financial/Staffing Implications In limiting the number of business that the Town licences, a slight decrease in revenue will occur; however, this will be countered by the number of staff hours that will no longer be required to process those specific applications. Staff that are presently overburdened with the inspection requirements now in place will be able to spread the renewal/transfer of business inspection requirements over a longer period of time. Presently, all renewal licences require inspections within a two month time frame, the new system will allow Fire and Building to stagger inspections. By streamlining the process, the business owner will no longer experience a delay in obtaining a business licence; however, a disclaimer has been placed on the new form that states the business owner will still require to be in compliance with all applicable legislation (ie. Building Code, Fire Code, Public Health requirements, etc.). Policies Affecting Proposal By-law No adopted Council s Corporate Strategic Plan. Specifically, Goal B1.1 states Streamline business licensing and permitting processes to facilitate business expansion and development. By-law No is the present Business Licencing By-law, with applicable schedules.
7 Office of the CAO Page 7 of 8 Report No. CAO Comments from Relevant Departments/Community and Corporate Partners The Team that reviewed the business licencing process was comprised of staff from the Fire Department, By-law Enforcement, Building, Planning, CAO s office and Legal & Legislative Services. The Region and Area Municipalities were consulted to determine levels of service being provided elsewhere in the Region and the Public Health requirements for new businesses and renewal/transfer of business. Alternatives Council may wish to maintain the status quo and licence all businesses that the Town presently licences with the applicable relevant inspection requirements. This alternative is not recommended as the present workload of various staff that have a role in the business licencing process does not allow for a quick turn around for the business owner. If Council chooses to maintain the status quo and improve responsiveness to the customer, then staffing levels and priorities will need to be reviewed. Council may also wish to alter the number and type of businesses that staff have recommended. Conclusion Staff were requested to streamline the business process and feel that they have accomplished this task through the process improvements contained in the report while at the same time improving customer service and ensuring the community that those businesses that should be licenced still receive proper inspections from Public Health, Fire and Building, where applicable. If the Working Group recommendations are approved by Council, the following tasks will be targeted for completion in early 2008: - revision to the present Business Licencing By-law; - completion of a new business licence application form and accompanying modification form; - electronic applications (ie. new database that will be linked to Fire, Building and Zoning, ability to access forms and pay on-line). There still may be operational issues that may require further review if Council directs the Town Solicitor to prepare a new business licencing by-law.
8 Office of the CAO Page 8 of 8 Report No. CAO The following suggested process improvements are contained throughout the report but for ease of reference have been re-listed below: THAT the Working Group recommends the following process improvements to the existing business licencing by-law: The Business Licencing By-law include new schedules for Personal Service Groups and Pet Services. The following be removed from the Business Licencing By-law schedules: - New Licences - Auctioneers - Pawn Brokers; and Only new businesses that have a corresponding schedule be required to obtain a business licence. All renewal or transfer of business licencing applications be approved, as long as they have not modified the building and are still compliant with the zoning by-law, and the applicable department and agencies be so notified so that they can arrange inspections throughout the year. Attachments Appendix 1 Overview of Present vs. Proposed Business Licencing Process
9 PRESENT WORKFLOW OF BUSINESS LICENCE APPLICATION Step 3: Zoning meet with Planning to determine if property is properly zoned for intended use. Tom then notifies Diana (signs off on application approval). Step 4: If property is not properly zoned, applicant can apply for variance or rezoning of property. Step 1: Application filled out with Clerk s office Step 2: Applicant visits Finance and pays for business licencing fee. Applicant is provided with contact information and advised that they must contact: - Planning for applicable Zoning - Building (to arrange inspection) - Fire (to arrange inspection) - Public Health (to arrange inspection) - Police Services (to arrange inspection) - SPCA (to arrange inspection) Step 3: Building Applicant contacts the Building Department to arrange an inspection by the Building Inspector, if applicable. If the property is in compliance, the Building Inspector notifies Clerk s office of deficiencies or no objections and signs off on application approval). Step 3: Fire Applicant contacts the Fire Department to arrange an inspection by a Fire Prevention Officer. If the property is in compliance, the FPO notifies the Clerk s office (signs off on application approval). The licence is not issued until compliance is met. Step 3: Other Agencies as required Applicant contacts Public Health, Police and SPCA based on schedules contained in the Business Licencing By-law. The licence is not issued until approval is received. Step 4: If Non-Compliant during Inspection: - The Building Code requires specific compliance. - Applicant is asked to notify Building when compliance issues are completed in order to arrange a re-inspection. - Licence not approved until compliance is achieved. Step 4: If Non-Compliant during Inspection: - The Fire Prevention Policy allows for 30 days to comply (24-48 hours if sprinkler or fire alarm related). - A re-inspection takes place. - If still non-compliant, a notice of violation is issued providing 15 days to comply. - If still not compliant, could be six months before a court date is available. Step 5: By-law Enforcement - Compliance is gained and licence is issued - No licence is obtained, referred to By-law Enforcement
10 PROPOSED WORKFLOW OF BUSINESS LICENCE APPLICATION Step 3: NEW APPLICATION meet with Planning to determine if property is properly zoned for intended use. Clerk s Office then forwards information to Building, Fire and Public Health, Police, SPCA (dependent on schedule) Licence is approved once inspections are complete (5-7 days if Regional inspection is required, 72 hours if only Fire/Building required) Step 1: Application filled out with Clerk s office (DETERMINATION IS MADE IF BUSINESS REQUIRES LICENCE BASED ON NEW SCHEDULES) Step 2: Applicant visits Finance and pays for business licencing fee. Step 3: TRANSFER OF BUSINESS (remains on same premises) if modifications have been made to the building an additional form is completed to determine if modifications are structural in nature. If there are no modifications, licence is approved and information is forwarded to the various department and agencies. If there have been modifications that are structural, Building will follow-up to ensure a building permit was obtained. Step 3: RENEWAL APPLICATION applicant is asked if there is any change to the information contained in the original application. If the answer is no, then the licence is approved and information is forwarded to the various department and agencies. If changes have been made this information will also be forwarded to the various department and agencies. Note: All licenced businesses must be in compliance and remain in compliance. This is explained to them when applying for a business licence. Fire, Building, Public Health, Police and any other applicable department or agency may still visit a business at any time to ensure that all by-laws and legislation are being complied with. Noncompliance may lead to revoking of the business licence. The Region of Niagara presently posts food establishments on their web-site that have non-compliance issues.
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