open house new business licensing by-law may 7, 2009

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Open HouseNew Business Licensing By-LawMay 7, 2009

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Background Information

Open HouseNew Business Licensing By-Law

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History►On October 4, 2004 current business licensing by-law (2004) -17551 was approved.

The only purposes for licensing permitted by the Municipal Act were :

Health and safety → e.g. RestaurantsConsumer protection → e.g. Vehicle Service Est.Nuisance → e.g. Refrigerated bicycle cart

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Status of the current Business Licensing By-law


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Under our current by-law the purposes for licensing are as follows:•Health•Safety•Wellbeing

…where there is a municipal interest* that is nototherwise provincially or federally legislated.

Examples of what constitutes municipal interest is as follows:• Food handling/preparation/sales• Procedures involving bodily contact• Large assemblies of people (100+)• People overnight sleeping• Required or allowed by legislation

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Process-Staff team review


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Staff team comprised of members of the following service areas:

Building By-lawCourt Fire Information/ClerksLegalZoning

Representatives from the following were also invited to participate:

Guelph Police ServicesWellington-Dufferin-Guelph Public health

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Process-Staff team review


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The working team met several times and reviewed the following:

Categories DefinitionsApplication processHearing processMain bylaw conditions Conditions to specific categoriesInspection process for:

applications, renewals and enforcement

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Process-Open House Communications


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1,742 Invitations sent to licensees on April 24

City Webpage posted with information on April 24

Ad appeared in Guelph Tribune on April 27 and May 1

Information forwarded to:Guelph Chamber of CommerceDowntown Guelph Business AssociationGuelph Wellington Business Enterprise Centre

Contact information included in all communication: email & phone number

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Categories proposed to be licensed


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•Adult Entertainment Establishment• Adult Entertainment Retail (included in Adult Entertainment Establishment)• Amusement Establishment• Bed and Breakfast• Catering Company• Flea Market – indoor only (included in Public Hall)• Food Shop (included in Food Premise)• Food Premise (to include Food Shop and Restaurant)• Food Vehicle

> Chip Wagons> Mobile Preparation Vehicle> Refreshment Vehicle

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Categories proposed to be licensed (Cont’d)


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• Hair Salon (included in Personal Service)• Holistic Services (including operators and practitioners)• Hotel Establishments• Pawnbroker• Personal Service Establishment (includes Hair Salon)• Private Parking Agent• Public Hall (includes Flea Market – indoor only and Theatre, 100+• Restaurant (included in Food Premise)• Street Vendor – City tendered• Theatre (included in Public Hall)

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Categories proposed to no longer be licensed


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• Auctioneer• Billiards Establishment• Bowling Alley• Door-to-Door Sales Business• Driving Instructor/Driving School• Flea Market – outdoor only• Food Vehicle

> Mobile Barbeque Facility> Refrigerated Bicycle Carts

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Categories proposed to no longer be licensed (cont’d)


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• Laundromat/Dry Cleaner• Pet Shop• Physical Fitness Centre• Plumbing Contractor/Backflow Device Tester/Drain Contractor• Retail Business• Temporary Sale• Tobacco• Vehicle Service Establishment

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Why are these categories proposed to be deleted?


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A. A municipality’s ability to provide consumer protection through licensing is limitede.g. Retail

The Trades (e.g. plumbing contractors & drain contractors)

Vehicle Service Establishment

B. Some are now superseded by provincial or federal legislation e.g. Tobacco sales

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Proposed New Application Process


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The proposed NEW application process for a business licence will be a two-step process:

Step 1 – the Inspection Process 1. complete an application for inspection(s)2. inspections to be complete before application for business licence3. provide a floor plan (for all location licences)4. inspections to be completed within 90 days5. three inspections are included. 6. new application fee required if more than 3 inspections occur 7. 30 day extension is available if works begun8. fee required

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Proposed new application process( cont’d)


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Step 2 – the Application Process

1. Application - once your inspections have passed. (To be received by the Clerk’s Office within 90 days of

completing your inspection; or a both fees are required)

2. Submit all your paperwork

3. Fee payment

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Proposed new application process( cont’d)


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The Renewal process:

1. Inspections to be completed by expiry date2. 2 inspections are included, new inspections/fees required if 3+3. current insurance & membership in association required4. new inspection application and business licence application is required

If renewal not received by expiry date5. 30 day extension is available if works begun6. A payment fee for licence renewal is required

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Why Propose a new application process?


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-Businesses were applying for a licence and not completing inspections

-Deficiencies were not being rectified

-Businesses were operating before receiving licence

-New system assists with businesses receiving and passing all required inspections before operating and receiving a business licence

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Highlights of proposed by-law changes- general


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*Changes to be reported to the Clerk’s office within 15 days

* Main entrance unlocked during hours of operation (except dwellings)

*No Exemption for Charities and non profit organizations

*New ground for refusal to issue/renew/revoke/suspend/cancel a licence if there is a prohibition order or other federal or provincial order ceasing that activity

*Refund of fee on refusal to issue or renew a licence which is not appealed to be the enforcement portion of the fee

*New licence required if application for renewal of licence has not been made by the day following the date of the licence expiry, therefore,

• no March 31 renewal date • no interest calculation

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Highlights of proposed by-law changes – application process


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*All businesses to carry minimum $2 million insurance

*Proof of interest in lands or premises to be provided

*Floor plans to scale to be provided (for location businesses)

*Hours of operation to be included in application and posted on exterior of business (except dwellings)

*Corporations & partnership information to be provided

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Highlights of proposed by-law changes– appeal process


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*Composition of hearings committee to include some or all citizens *Hearings committee decision to be final and binding

*Processing fee in amount of $50 to be required as part of appeal *Time limits to be clarified

*Secretary of the hearings committee may refuse appeals which are late

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Highlights of proposed changes to specific categories


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Amusement-Defined as Indoor facilities only

-Arcades, internet gaming & internet cafes not included

Holistic -Psychological therapies not included

-Façade to be unobstructed from exterior -Professional liability insurance & membership in good standing to professional association to be provided upon renewal for

practitioners

Public Hall-Applies to indoor premises with capacity of 100+-If operating as a flea market, conditions of current category apply -Sidewalk & highway to be unobstructed & attendant to be present-No exit or corridor to be blocked or obstructed

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Highlights of proposed changes to specific categories


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Personal Service-Services and fees to be posted-Only area designated to be used for services-Where a personal service & holistic service are one business , both licences are required and the license fee shall be the greater of the two-Linens to be laundered after each use-Contact surface to be clean -First aid kit to be provided -Toilet and washroom to be provided-Hand washing basin with hot water and drying materials to be provided

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Proposed New Fee Structure


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New Application

I: Inspection process = inspection costs + vehicle costsII: Application process = administration+ enforcement + vehicle costs

= fee required to obtain a business licence

Administration = processing costs

Enforcement+ vehicle = visits throughout the year

RenewalRenewal =inspection+ administration+ enforcement +vehicle costs

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How is the fee calculated?


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Staff TimeThe compensation rate per hour multiplied by the average time for inspection

VehicleHourly rate

Inspection authorities are Building, By-law Fire, Health, and Zoning

Application fee includes hourly Clerks Office staff compensation to process the applications, and ongoing enforcement fee over the year based on one or 2 visits

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Options for proposed new fee structure


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A (i) Cost recovery (based on staffing + vehicle costs) including annual indexing (ii) Cost recovery, no annual indexing

B (i) Cost recovery not including enforcement with annual indexing(ii) Cost recovery not including enforcement, no annual indexing

C (i) 2 year phase in for A. (i) Cost recovery/annual indexing (ii) Cost recovery, no annual indexing(ii) 2 year phase in for A (ii) Cost recovery/no annual indexing(iii) 2 year phase in for B (i) Cost recovery/no enforcement & annual indexing(iv) 2 to 4 year phase in for B (ii) Cost recovery no enforcement/ no indexing

Indexing = year over year increase based on the consumer price index before your renewal notice has been issued.

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The City of Guelph would like your input


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Please provide your thoughts on the comment sheet or email your comments by May 14, 2009 to [email protected] or [email protected]

Next steps

June 9, 2009 - Recommendations to be brought forward to Finance Administration Community Services Committee June 22, 2009 - tentatively planned to go to Council for approval.September , 2009- By-law to be effective, once passed, ad will be placed in paperPhysical conditions to be met by January 2, 2010

mailto:[email protected]

mailto:[email protected]

open house new business licensing by-law may 7, 2009

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