Item - 2017.AU10.2

Tracking Status

  • City Council adopted this item on November 7, 2017 with amendments.
  • This item was considered by Audit Committee on October 27, 2017 and was adopted with amendments. It will be considered by City Council on November 7, 2017.

AU10.2 - A Review of Municipal Licensing and Standards Division's Management of Business Licences - Part One: Licence Issuance, Inspection and Complaint Investigation Functions

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on November 7, 8 and 9, 2017, adopted the following:

 

1.  City Council request the Province of Ontario to amend the City of Toronto Act to give authority to the City to restrict the issuance of licences, to ensure the City can address issues when licence categories are used for activities other than what they are permitted to do.

 

2. City Council request the Executive Director, Municipal Licensing and Standards, in consultation with the City Solicitor, to review the by-law provisions related enforcement framework, and the Division's Standard Operating Procedures pertaining to unlicensed businesses, with a view to strengthening the City's efforts to ensure compliance with licensing requirements.

 

3. City Council request the Executive Director, Municipal Licensing and Standards, to review and improve the effectiveness and efficiency of the existing proactive inspection process; steps to be considered should include:

 

a. developing and implementing proactive inspection frequency by the type of business licences based on risks and enforcement history; and

 

b. ensuring adequate supporting documentation on proactive inspections is retained to ensure the inspections are conducted in a consistent and equitable manner to all licensees and for quality assurance monitoring purposes.

 

4. City Council request the Executive Director, Municipal Licensing and Standards, to review and enhance the timeliness and efficiency of the complaint investigation process; steps to be considered should include but not be limited to:

 

a. capturing the necessary milestone dates in the licensing database to enable monitoring of performance measures;

 

b. establishing performance measures to track and monitor the efficiency of complaints handling and investigation processes; and

 

c. developing internal processes to periodically review staff time spent by type of investigation to ensure efficient use of staff resources.

 

5. City Council request the Executive Director, Municipal Licensing and Standards, to review the number of business licence investigations and charges among the three District Offices and among officers to identify ways to improve efficiency.

 

6. City Council request the Executive Director, Municipal Licensing and Standards, in developing system requirements for a new case management system for business licences, to consider and incorporate the need for providing efficient and user-friendly mobile devices to officers to improve the efficiency of recording inspection and investigation results while on site.

 

7. City Council request the Executive Director, Municipal Licensing and Standards, to expedite the licence fee review process to ensure compliance with the City's User Fee Policy.

 

8. City Council request the Chief Transformation Officer to consider including in the Chief Transformation Officer's 2018 work plan a comprehensive review of the Municipal Licensing and Standards Division's business license program, as part of an overall review of the City's inspections and enforcement activities.

City Council Decision Advice and Other Information

City Council considered Items AU10.2, AU10.3 and AU10.4 together.

Background Information (Committee)

(October 24, 2017) Report from the Auditor General - A Review of the Municipal Licensing and Standards Division's Management of Business Licences - Part One: Licence Issuance, Inspection and Complaint Investigation Functions
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108168.pdf
Audit at a Glance - A Review of the Municipal Licensing and Standards Division's Management of Business Licences - Part One: Licence Issuance, Inspection and Complaint Investigation Functions
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108169.pdf
Attachment 1: A Review of the Municipal Licensing and Standards Division's Management of Business Licences - Part One: Licence Issuance, Inspection and Complaint Investigation Functions
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108170.pdf
(October 13, 2017) Placeholder Report from the Auditor General regarding a Review of Municipal Licensing and Standards Division's Management of Business Licences - Part One: Licence Issuance, Inspection and Complaint Investigation Functions
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108033.pdf
(October 27, 2017) Presentation material submitted by the Auditor General
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108293.pdf

Motions (City Council)

1 - Motion to Amend Item (Additional) moved by Councillor Giorgio Mammoliti (Carried)

That City Council request the Province of Ontario to amend the City of Toronto Act to give authority to the City to restrict the issuance of licences, to ensure the City can address issues when licence categories are used for activities other than what they are permitted to do.

Vote (Amend Item (Additional)) Nov-08-2017 11:49 AM

Result: Carried Majority Required - AU10.2 - Mammoliti - motion 1
Total members that voted Yes: 31 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Shelley Carroll, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Michael Ford, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, John Tory, Lucy Troisi
Total members that voted No: 9 Members that voted No are Christin Carmichael Greb, Janet Davis, Sarah Doucette, John Filion, Jim Hart, Joe Mihevc, Gord Perks, Neethan Shan, Kristyn Wong-Tam
Total members that were Absent: 5 Members that were absent are Joe Cressy, Paula Fletcher, Mary Fragedakis, Michelle Holland, Michael Thompson

Motion to Adopt Item as Amended (Carried)

AU10.2 - A Review of Municipal Licensing and Standards Division's Management of Business Licences - Part One: Licence Issuance, Inspection and Complaint Investigation Functions

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

The Audit Committee recommends that:

 

1. City Council request the Executive Director, Municipal Licensing and Standards Division, in consultation with the City Solicitor, to review the by-law provisions related enforcement framework, and the Division's Standard Operating Procedures pertaining to unlicensed businesses, with a view to strengthening the City's efforts to ensure compliance with licensing requirements.

 

2. City Council request the Executive Director, Municipal Licensing and Standards Division, to review and improve the effectiveness and efficiency of the existing proactive inspection process. Steps to be considered should include:

 

a. Develop and implement proactive inspection frequency by the type of business licences based on risks and enforcement history.

 

b. Ensure adequate supporting documentation on proactive inspections is retained to ensure the inspections are conducted in a consistent and equitable manner to all licensees and for quality assurance monitoring purposes.

 

3. City Council request the Executive Director, Municipal Licensing and Standards Division, to review and enhance the timeliness and efficiency of the complaint investigation process. Steps to be considered should include but not be limited to:

 

a. Capture the necessary milestone dates in the licensing database to enable monitoring of performance measures.

 

b. Establish performance measures to track and monitor the efficiency of complaints handling and investigation processes.

 

c. Develop internal processes to periodically review staff time spent by type of investigation to ensure efficient use of staff resources.

 

4. City Council request the Executive Director, Municipal Licensing and Standards Division, to review the number of business licence investigations and charges among the three District Offices and among officers to identify ways to improve efficiency.

 

5. City Council request the Executive Director, Municipal Licensing and Standards Division, in developing system requirements for a new case management system for business licences, to consider and incorporate the need for providing efficient and user-friendly mobile devices to officers to improve the efficiency of recording inspection and investigation results while on site.

 

6. City Council request the Executive Director, Municipal Licensing and Standards Division, to expedite the licence fee review process to ensure compliance with the City's User Fee Policy.

 

7. City Council request the Chief Transformation Officer to consider including in his 2018 work plan a comprehensive review of Municipal Licensing and Standards Division's business license program, as part of an overall review of the City's inspections and enforcement activities.

Decision Advice and Other Information

The Audit Committee considered the following Items together:

 

- AU10.2, headed "A Review of Municipal Licensing and Standards Division's Management of Business Licences - Part One: Licence Issuance, Inspection and Complaint Investigation Functions"

 

- AU10.3, headed "A Review of Municipal Licensing and Standards Division's Management of Business Licences - Part Two: Licensed Holistic Centres"

 

- AU10.4, headed "A Review of Municipal Licensing and Standards Division's Management of Business Licences - Part Three: Eating Establishments and Nightclubs".

 

Beverly Romeo-Beehler, Auditor General, and Jane Ying, Assistant Auditor General, gave a presentation to the Audit Committee on this Item.

Origin

(October 24, 2017) Report from the Auditor General

Summary

The City of Toronto, through the Municipal Licensing and Standards Division (MLS), is responsible for regulating a myriad of businesses operating within its jurisdiction. The objective of this audit was to assess the effectiveness and efficiency of business licensing and By-law enforcement operations.

 

This audit covered the period from January 1, 2015, to December 31, 2016.

 

Our audit results are provided in three audit reports:

 

Part One – the subject of this report, provides an overview of MLS's licensing and enforcement functions.

 

Part Two – focuses on MLS's licensing and enforcement activities regarding holistic centres.

 

Part Three – focuses on licensed eating establishments potentially operating as unlicensed nightclubs.

 

In this audit report, we have made seven recommendations pertaining to the key licensing functions – licence issuance, inspections of licensed businesses, complaint investigations, and licence fees. The implementation of these recommendations will help the Division to more effectively and efficiently manage business licences and ensure compliance with the By-law requirements.

Background Information

(October 24, 2017) Report from the Auditor General - A Review of the Municipal Licensing and Standards Division's Management of Business Licences - Part One: Licence Issuance, Inspection and Complaint Investigation Functions
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108168.pdf
Audit at a Glance - A Review of the Municipal Licensing and Standards Division's Management of Business Licences - Part One: Licence Issuance, Inspection and Complaint Investigation Functions
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108169.pdf
Attachment 1: A Review of the Municipal Licensing and Standards Division's Management of Business Licences - Part One: Licence Issuance, Inspection and Complaint Investigation Functions
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108170.pdf
(October 13, 2017) Placeholder Report from the Auditor General regarding a Review of Municipal Licensing and Standards Division's Management of Business Licences - Part One: Licence Issuance, Inspection and Complaint Investigation Functions
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108033.pdf
(October 27, 2017) Presentation material submitted by the Auditor General
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108293.pdf

Speakers

Councillor Jim Karygiannis
Councillor Cesar Palacio
Councillor Glenn De Baeremaeker
Councillor Frances Nunziata

Motions

1 - Motion to Amend Item moved by Councillor Christin Carmichael Greb (Carried)

That the Audit Committee amend Recommendation 7 contained in the report (October 24, 2017) from the Auditor General, by deleting the words "in the context of the City's overall inspections and enforcement activities", and inserting instead "as part of an overall review of the City’s inspections and enforcement activities", so that it now reads:

 

7. City Council request the Chief Transformation Officer to consider including in his 2018 work plan a comprehensive review of Municipal Licensing and Standards Division's business license program, as part of an overall review of the City’s inspections and enforcement activities.


2 - Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Oct-27-2017

Result: Carried Majority Required - AU10.2 - Adopt the Item, as amended
Total members that voted Yes: 5 Members that voted Yes are Christin Carmichael Greb, Michael Ford, Stephen Holyday (Chair), Chin Lee, Josh Matlow
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 1 Members that were absent are Jim Hart
Source: Toronto City Clerk at www.toronto.ca/council