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Municipal Interests
in Liquor Licensing
Liquor Licensing Issues Task Force
October 30, 2015
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| Timeline of Events
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• City Council approved a Members Motion to “protect communities and help small business by improving the licensing of bars and restaurants”
• City Council received a report from Legal Services regarding AGCO communication
• Requested ML&S to report back with options to deal with issues arising from premises with liquor sales licences
• City Council requested input from the working group to develop better compliance with City by-laws regarding restaurants, bars and entertainment establishments as per motion from Dec. 2013
Dec.
2013
Apr.
2014
Jul.
2014
| Timeline of Events
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Feb.
2015
• ML&S reported to the Licensing and Standards
Committee and City Council with three reports:
o Municipal Interests in Liquor Licensing
o Municipal Interests in Liquor Licensing - Recent
Conditions Placed on New Licences
o Establishment of Task Force on Liquor Licensing
Issues
• City Council established a Task Force on Liquor
Licensing Issues
Mar.
2015
• City Council appointed 6 Members to the Task
Force for a term of office until December 31, 2016
and until successors are appointed
| Background
Task Force Mandate
To provide advice to staff on…
a) the City's role in liquor licensing
b) issues associated with operating restaurants, bars
and entertainment establishments with respect to
liquor licensing and alcohol-related matters
c) solutions that mitigate community nuisance concerns
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• 8,000 (approx.) eating establishments in Toronto
• 4,200 (approx.) of these establishments are licenced by
the AGCO
• These establishments are a significant component of
Toronto's economy
• Nuisance issues from these establishments are creating
increased friction with the communities in which they are
located
| Context
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Nightclubs and Eating Establishments
- Complaints received by ML&S-
Year NightclubsEating
Establishments
2012 124 504
2013 103 554
2014 115 700
2015* 86 716
* as of October 2015
Common ML&S Complaints
Noise (72%)
Operating without a Licence / Nightclub Licence (13%) 6
• Venues licenced as restaurants and operating as bars or
nightclubs (“hybrids”) operating in areas that adjoin stable
residential areas
• Proactively determining policing levels, with “hybrid” bar/
nightclubs operating beyond areas where traditional
nightclubs are permitted
• The provision of entertainment is driven by consumer/social
demand; “hybrids” are a function of strong demand
| Challenges to addressing community nuisance
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• Moving patrons quickly out of centralized entertainment
areas following closing time:
o access to late-night rapid transit is limited; and
o late-night “rush hour” congestion limits the ability of ground
transportation vehicles to move quickly
• Smoking restrictions are resulting in increased noise levels
and near adjacent residential areas
• Ashtrays are prohibited where smoking is prohibited, which
also leads to increased litter on sidewalks and near
residential areas
• Managing anti-social and disorderly behaviour through
business licensing and regulation
| Challenges to addressing community nuisance
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| Approach to Address Challenges
• Establish a governance model to inform policy
and procedural improvements
• Identify opportunities to address community
nuisance issues:o Short-term
o Medium / long-term initiatives
• Work with Key Partners:o Toronto Police Service
o Alcohol and Gaming Commission of Ontario; and
o Industry stakeholders
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| Governance Model
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| Regulatory Working Group
ObjectiveTo identify policy and/or legislative gaps to ensure community nuisance
issues are appropriately addressed.
4 meetings to-date 11
Membership
ML&S AGCO
Toronto Building Toronto Police
Legal OPP
City Clerk
| Hospitality Working Group
ObjectiveTo discuss issues related to restaurants, bars and entertainment
establishments, such as the process for obtaining liquor licences, other
alcohol-related matters and the impacts on the neighbourhoods where
they locate.
Membership
ML&S AGCO
Legal Toronto Police
City Planning ORHMA
Toronto Building Economic Development
Public Health TABIA
Entertainment Industry Reps
124 meetings to-date
| Work Plan
Examine opportunities to address
community nuisance through the
following areas of focus
1. Enforcement
2. Process
3. Regulation
4. Education13
Community nuisance concerns are addressed through Provincial
and Municipal systems of enforcement
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ML&S Enforces…
Examples of Violations:
• Noise that disturbs residents
• Business operating without a license
• Business not operating in accordance
with their licence or conditions
Toronto Municipal Code
Ch. 591, Noise
Ch. 545, Business Licensing
Ch. 548, Littering and Dumping
Ch. 841, Waste Collection
Ch. 313, Boulevard Cafes
Ch. 629, Property Standards
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Toronto Police Service enforces…
Examples of Violations:
• Fighting
• Public drunkenness
• Disorderly behaviour
• Narcotics
Criminal Code
Controlled Drugs &
Substances Act
City By-laws
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OPP / AGCO Enforces…
Examples of Violations:
• Serving minors
• Over-crowding
• Intoxication
• Disorderly behaviour
Liquor licence Act
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Information Sharing
Toronto Police reports are shared with AGCO to aid
inspections (1000+ year-to-date)
AGCO provides ML&S with liquor licence revocation/
cancelation list to aid inspections and/or respond to
noise complaints
Tribunal reports submitted by ML&S use information
provided by Toronto Police
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Information Sharing cont.
MLS advises AGCO of convictions resulting from charges
laid under municipal bylaws
MLS advises AGCO of Toronto Licensing Tribunal
outcomes (e.g. licence revocation, refusing to issue a
licence, and/or conditions placed on municipal licences)
If a Toronto Licensing Tribunal decision relates to an entity
that is licenced or registered by the AGCO, the decision is
added to the AGCO master file for that establishment
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Shared information can be used by AGCO for risk-based
licensing reviews
Coordination
ML&S, AGCO and TPS hold quarterly meetings to review
“Top 10” problem establishments
Strategies for coordinated inspections are developed
Joint inspections with TPS, AGCO, M&LS and other City
of Toronto staff are held to ensure compliance with all
appropriate legislation that each agency/department is
responsible for
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TPS has a dedicated liaison officer who coordinates with
AGCO (existing process) and ML&S (new process)
Coordination cont.
Meetings are held with large capacity night club
managers/ owners to assess potential risks with
scheduled events identify proper security staffing levels
and an appropriate police presence
Trends, issues, criminality, and community complaints
discussed openly in order to work collaboratively and
bring them into compliance
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New Initiatives
• Relocating CCTV cameras in locations where they are no
longer effective to areas of greater need
• Ongoing consultation lead by TPS 14 Division with
community members, local City councillors, and ML&S
• Traffic Management – to help improve late night/early
morning traffic flow
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| Work Plan
Examine opportunities to address
community nuisance through the
following areas of focus
1. Enforcement
2.Process
3. Regulation
4. Education23
Tasks
• Review the City's process/procedures to deal with
problem establishments
• Review AGCO/City of Toronto clearance processes to
identify “gaps” and potential service enhancements:
o New liquor licence applications
o Scope of the municipal clearance process
o Transfer of liquor licences
o Applications for increased capacity, outside service, etc.
o Special Occasion Permits (SOPs)
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Liquor Licence Applications
All new/increase applications are emailed to City of
Toronto by the AGCO directly for advanced notice
Toronto is the only municipality that has this
arrangement with AGCO
• City Clerk circulates all new applications to City
Councillors and Toronto Police
• Use Compliance Letters to put specific municipal
conditions on a licencee
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Current Municipal Clearance Process
• Municipal Clearance is required for a new Liquor Sales
licence
• Documentation is circulated to Fire Services (FS), Toronto
Building (TB) and Public Health (PH) for inspections
o Municipal Clearance issues include zoning compliance; seating capacity,
occupancy and fire safety; and food preparation facilities
• Letters of approval or denial from FS, TB and PH are provided
to the AGCO
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Licence Transfers
• Liquor sales licences are issued to individuals, business
partnerships or corporations, for operation at a specific location
• Section 17 of the Liquor Licence Act (LLA) provides for transfer of a
licence (i.e. it doesn’t expire upon the sale of a business)
• Licence transfers must be approved by the AGCO before the
change is made
• AGCO performs due diligence on all transfer applicants to ensure
eligibility of new application, consistent with the LLA
• In the event a licence transferee does not meet the requirements,
the Registrar can issue an Notice of Proposal to refuse the transfer
• Currently Notice of Transfers are not provided to municipalities27
Special Occasion Permits (SOP’s)
• An SOP is needed any time alcohol is offered for sale or served
anywhere other than in a licenced establishment or a private
place
• For outdoor events, the permit holder must write to the local
municipality, police, and fire and health departments notifying
them of the event
• 30 days notification to the municipality ( <5000 people / day)
• 60 days notification to the municipality (>5000 people / day)
• Risk considerations can relate to an applicant and/or the event
itself28
SOP’s and Letter of Municipal Significance
• For a “Public Event” SOP, the municipality must designate it as
“Municipally Significant”
• Information required to request a “Municipal Significance” letter:
o Statement that the request is for an Event of Municipal Significance
o The name of the Event
o The exact address or location of the Event
o The purpose of the Event
o The date(s) of the Event
o The times the Event begins and ends
o Name, address and telephone number
• Applications are considered by Community Council
• A letter from the local Community Council declaring that the event is
an "Event of Municipal Significance“ is required as part of the AGCO
application 29
SOP’s, Risk, and Conditions
• The AGCO may impose conditions on an SOP to mitigate
identified risks to public safety or the public interest
• Risk considerations can relate to an applicant and/or the
event itself
• Examples include:
o restricting hours of alcohol service
o limiting access to the event by minors, or
o Increased security requirement
Information-sharing between AGCO and ML&S can help
identify potential risks for events and for applicants30
| Work Plan
Examine opportunities to address
community nuisance through the
following areas of focus
1. Enforcement
2. Process
3.Regulation
4. Education31
Tasks
Identify opportunities to address community nuisance
impacts through municipal regulation:
1. Review of Toronto Municipal Code
• Chapter 545, Licensing
• Chapter 591, Noise
• Chapter 313, Boulevard Cafes
• Chapter 709, Smoking
2. Review of Land Use Zoning tools
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Chapter 545, Licensing (on-going review)
Potential opportunities to address nuisance issues
through business licensing:
1. Attaching conditions to a business licence
o E.g. Food Service shall be available until time of closing
o E.g. Patrons awaiting seating or service must be accommodated
inside the premises.
2. Considering a risk-based approach to the licensing of
Eating Establishments
3. Considering new business licensing categories33
Chapter 591, Noise (on-going review)
Potential opportunities to address nuisance issues
through the Noise By-law Review:
1. Enhancing enforcement and compliance by:
o Increased fines and/or penalties
o Making the By-law easier to interpret, understand, and
enforce
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Chapter 313, Boulevard Cafes (on-going review)
Potential opportunities to address nuisance noise
through the Boulevard Café By-law Review:
1. Examining hours of operation
• 11:00 p.m. closing, local/residential streets
• 12:00 a.m. closing, commercial/main streets
o currently there is no closing time specified in the By-law
for sidewalk cafes that are not located on
local/residential streets
• operating hours can also be determined on a case-by-case
basis by Community Council 35
Chapter 709, Smoking
Examine opportunities to address littering of cig. butts:
• MC709, Smoking, prohibits ashtrays in areas where smoking is
prohibited
• Smoking is not prohibited on city sidewalk’s
• Examine means of locating ashtrays on city sidewalk’s /
sidewalk infrastructure
o E.g. review of MC 743, Streets and Sidewalks
o E.g. review of MC 548, Littering & Dumping
o E.g. “Butt Can” projects (BIA initiatives)
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Zoning and Land Use Controls
The following initiatives have been implemented to help
address community nuisance:
Zoning By-law
• Min. separation distance between Residential Zones and
Outdoor Patios located on private property:
o Outdoor patios must be set back min. 30 m from a lot in a Residential
or Residential Apartment Zone
o If located above the first storey of a building, the outdoor patio must be
min. 40 m from a lot in a Residential or Residential Apartment Zone
• Nightclubs are not permitted to abut Residential Zones37
Zoning and Land Use Controls (cont.)
The following initiatives have been implemented to help
address community nuisance:
Area-Specific zoning by-law amendments
• Limit the size and number of restaurants per building
• Restrict restaurants to the ground floor
The impact of the Queen St West restaurant
concentration By-law will be reviewed in Q3 2017
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| Work Plan
Examine opportunities to address
community nuisance through the
following areas of focus
1. Enforcement
2. Process
3. Regulation
4.Education39
AGCO
launched an online educational webinar in 2015 for Special
Occasion Permits focusing on large public events and street
festivals
AGCO held 5 “You and Liquor Laws” seminars in 2015 as part
of an educational program for liquor sales licencees in the City
of Toronto
Inter-Divisional and Partners
Participation in the Food and Beverage Market Show and
Restaurants Canada Show (Public Health)
Entertainment industry representatives share information with
stakeholders and facilitate timely responses to city initiatives40
Best Bar None
BBN is an international accreditation and award
licencee program aimed at improving liquor service
standards
Best Bar None (BBN) program has been implemented
in the Entertainment District
Implementation of the BBN program is being led by
ORHMA
BBN is supported and endorsed by the AGCO
Increasing enrolment of BBN-accredited operators will
help grow responsible liquor licencee operations41
Good Neighbour Policy
Developed a draft Good Neighbour Policy for bar,
restaurant and nightclub operators
A Good Neighbour Policy combines regulatory
responsibilities and “good-will” commitments
It signals to regulators, patrons and surrounding
neighbours that the permit holder is committed to
operate as a good neighbour and to make a positive
addition to the neighbourhood.
The Good Neighbour Policy promotes industry
compliance and responsible liquor licencee operations42
The Good Neighbour Policy concept has been endorsed
in Toronto by:
o AGCO
o Toronto Police Service
o ORHMA;
o BIA’s; and
o other industry stakeholders
Industry partners can assist in communication and
promotion of the policy to their members:
o website updates
o mail-outs43
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Education Opportunities
• Community and Industry consultation is required to
inform any potential policy amendments
• Joint Town Hall meetings (AGCO, ML&S, TPS etc.) are
an opportunity to meet face-to-face to educate the
public on what each agency does and to hear concerns
/ comments from the public.
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Town Halls could be conducted in specific
neighbourhoods, as determined by the Task Force
1. Enforcement • Information Sharing
• Coordinated inspections
• Relocate CCTV
• Traffic Management
• Emerging issues (Bottle Service/ Party Busses/ Move from Big Box clubs to
Restaurants operating as Nightclubs)
2. Process • Review the City’s process/procedures to deal with problem establishments
• Review ACGO/City of Toronto clearance processes
• New, expanded, request for change in conditions and transfers
• Special Occasion Permits
• Street Festivals
• The Music Industry
| Work Plan Summary
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3. Regulation • Review Toronto Municipal Code – Operation of eating establishments and
night clubs
• Review opportunities for different Licence classes
• Explore opportunity to place conditions on a Business Licence
• Harmonize Boulevard Café and Marketing By-laws
• Review Risk Based Business Licensing
• Understand emerging issues (Day Spas, Coffee Shops, Hair Salons ability to
obtain a Liquor Licence
4. Education• Develop a coordinated Public Education Campaign
• Promote the Good Neighbour Policy & Best Bar None program
• Review Industry Best Practices
• The Role of the Event Organizer
• Community Consultation / Joint Town Halls
| Work Plan Summary (Cont.)
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The End
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