City of Edmonton License Bylaw 6124 Rewrite

Recommendation:
That Council endorse the review of the existing Business License Bylaw with the intent of advancement of a new municipal Business License Bylaw for Council’s consideration and adoption.

Report Summary

This report recommends that the timing is appropriate for the preparation of a new Business License Bylaw for the City of Edmonton.

Report

  • The authority for municipalities to establish Bylaws for specified purposes, including the licensing of businesses is provided in Part 2, Sections 7 and 8 of the Municipal Government Act. The City of Edmonton plans to maintain this practice.
  • Edmonton’s current License Bylaw 6124 was written in the 1980’s. Many amendments have been approved over the course of time as the result of resolving emerging issues.
  • The existing Bylaw contains close to eighty (80) different categories of licenses, is subject to increasing interpretation and does not include the founding principles or rationale for licensing.
  • Recent integration of the License Section into the Development Compliance Branch of the Planning and Development Department, coupled with the implementation of a new Zoning Bylaw, creates a ripe climate for initiating this project now.
  • Continuity of purpose and the delivery of a consistently high level of customer service will be achieved through the creation of the replacement Bylaw.
  • The opportunity to rewrite the regulatory Bylaw will also permit the integration of current direction for the City of Edmonton and the Planning and Development Department to be captured.
  • The rationale for and timeliness of initiating a project to prepare a new Business Licensing Bylaw for the City of Edmonton is provided in Attachment 1.
  • The task of creating this new municipal License Bylaw will also include analysis of the following items:
  1. An opportunity to review revenue streams.
  2. A complete review of all processes related to application and for issuing a license.
  3. Reengineering standards of practice including the potential of using e-Commerce payment methods will be reviewed.
  4. The alignment of use definitions with similar definitions found in other municipal Bylaws.
  5. Complete review of the requirement for referrals to other agencies or Departments with an objective of reducing and simplifying these processes.
  6. Revisiting the appeal process to ensure that affected parties have an appropriate process to address their concerns.
  • A communication strategy will be developed in order to inform certain individuals, associations, and agencies of the nature of the review and to ensure that stakeholder input is garnered at appropriate junctures in time.
  • Existing staff within the Development Compliance Branch will be assigned to complete this project. It is anticipated that a new Bylaw will be ready for Council’s approval in February 2002.

Budget / Financial Implications

Costs for this project are estimated at $100,000 and will be accommodated within the existing budget through the reallocation of staff resources as time permits.

Justification of Recommendation

By approving this report, City Council provides the Administration with a framework for developing a new License Bylaw.

Background Information Attached

  1. Edmonton Needs a New Business Licensing Bylaw.

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Attachment 1

Edmonton Needs a New Business Licensing Bylaw

The City of Edmonton has been engaged in the licensing of business and business activities since its incorporation. Throughout this longstanding history the purpose of municipal licensing is to register businesses and regulate business activities in the public interest. Specifically, the issuance of business licenses allows the City the opportunity for regulatory intervention in the following circumstances:

  • Where there is a perceived danger to the safety, health and welfare of people and to promote the protection of people and property.
  • Where the regulation created by the licensing process assists in achieving legislative compliance such as crime prevention and the recovery of stolen property.
  • Where a form of consumer protection is warranted, such as supplier qualifications or limitation on a business that is conducted at a consumer’s residence.
  • Where the operation of a business may cause a negative impact in the immediate neighbourhood.
  • Where the business activity clearly conflicts with the broad community standards of the citizens of Edmonton.
  • Where an alternative to business tax is needed to eliminate an unfair advantage to business operators that are not subject to payment of the City’s business tax.

Edmonton needs a new Business Licensing Bylaw. Edmonton’s current Licensing Bylaw was created in 1980. The 1980 Bylaw has been subject to a trail of amendments that present an anthology of public issues since its adoption in September of 1980. Unfortunately, the 1980 rewrite did not assess the underlying purpose and philosophy of the City’s involvement in the regulation of business activities. Indeed much of the language in the current Bylaw was carried forward from licensing bylaws and licensing practices that were established at the turn of the century. Accordingly, the current Bylaw is very outdated and has lost any coherent presentation of philosophy and purpose. This makes it extremely difficult to explain to citizens and defend in court.

A couple of examples will help to illustrate some of the dysfunctional characteristics of the current Business Licensing Bylaw. The City of Edmonton requires a special business license if you puff wheat. The City of Edmonton requires an additional business license fee if your commercial apartment building provides washers and dryers for tenant use. Convenience Stores typically require five separate licenses.

Now’s the Time.

The addition of the Business Licensing Section to the Planning and Development Department and the integration of Business Licensing processes and Development Permitting processes within the Development Compliance Branch prompts that action be taken now. The new Zoning Bylaw was recently approved by City Council. To take full advantage of the synergies presented by the initiatives reflected in the Zoning Bylaw and work process integration, there must be a concurrent re-alignment of use definitions and business practices of the Business Licensing Bylaw in order to achieve the optimal benefit of the recent corporate restructuring.

These organizational changes also demand that the philosophic foundation for the Licensing Bylaw must be aligned with the underpinnings of other Department Bylaws. This is critical in establishing continuity of purpose and the delivery of a consistent and high level of customer services. The Branch’s mandate and activities must be consistent and clearly understood. Its processes must be transparent.

Council has received a growing number of complaints from both license holders and the general public that the current Bylaw is out of step with the times, hopelessly complex and ineffective.

Edmonton has taken a number of organizational, financial and core function reviews to place its service delivery capabilities at the forefront of local government practice. A 40 year old License Bylaw is out of synch with these corporate initiatives.

What is Involved?

The present bylaw includes administrative provisions, descriptions of uses without referral and regulation, and descriptions of uses with referrals and regulations.

The process to renew the Bylaw will:

  • Establish a list of principles upon which the new Bylaw will be formulated.
  • Provide the opportunity to review licensing revenue streams.
  • Complete a review of all processes around the issuing of licenses. This will take advantage of the Branch reorganization.
  • Complete a review of the existing business Licensing appeal process with the possibility of creating a new appeal structure.
  • Modernize, simplify and align business license use definitions with the use definitions in other bylaws.
  • Complete a review of all referrals to other agencies with the objective of reducing and simplifying the referral processes.
  • Complete a review of all regulations again to modernize, simplify and align standards of practice with other bylaws.
  • A communication Strategy will be developed to inform business and individuals about the nature of the new bylaw and encourage compliance.

How We Will Do It?

The Development Compliance Branch will form a team led by Phil Fearon, Project Manager, and include a Senior Licensing Officer and a Senior Development Officer. These individuals will work full time on the project. A temporary Planning Technician will be hired as a project team support resource.

A communication consultant will be engaged using the Development Compliance Branch’s consultant budget. The communication consultant contract will include the development of a Communication Strategy for the Project. The consultant will also lead a managed approach in developing the underlying principles and philosophy for the City’s business licensing practices. Specifically, the communication consultant will assist in articulating the mandate and business practice of a new business licensing bylaw by soliciting the views and input of selected stakeholders.

Costs for the Communication Consultant are expected to be under $60,000. Costs for the Temporary Planning Tech will be under $40,000. Funds are available in the 2001 Branch budget to cover these external costs.

Next Steps

  • A report will be presented to Council in June of 2001 seeking a mandate to undertake the Business Licensing Review Project.
  • The study team will complete the detailed study design in July of 2001
  • The study team will prepare the terms of reference for the Communications consultant and engage the consultant to complete the stakeholder participation in August of 2001.
  • The principles for the City’s new Business Licensing Bylaw will be advanced for Council’s approval before the fall election.
  • The study team will prepare and circulate a draft Bylaw for stakeholder review in December of 2001.
  • The study team will prepare a final Bylaw for Council’s consideration by the end of January 2002.
  • A new Bylaw will be ready for approval by Council in February of 2002.

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