Item - 2017.AU10.4

Tracking Status

  • City Council adopted this item on November 7, 2017 with amendments.
  • This item was considered by the Audit Committee on October 27, 2017 and adopted without amendment. It will be considered by City Council on November 7, 2017.

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

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 Executive Director, Municipal Licensing and Standards, in consultation with the City Solicitor, to review the existing definition of "entertainment establishments/nightclubs" in Toronto Municipal Code Chapter 545 to identify the necessary changes that will strengthen the Division's inspection and enforcement efforts relating to licensed eating establishments operating as unlicensed nightclubs.

 

2. City Council request the Executive Director, Municipal Licensing and Standards, to review and amend the existing licence application form for eating establishments and nightclubs to ensure relevant information including the number of seats is obtained to facilitate the correct determination of the type of licence to be issued.

 

3. City Council request the Executive Director, Municipal Licensing and Standards, to develop and implement a risk-based follow-up inspection process after licence issuance that will require officers to visit selected eating establishments to confirm they are not offering nightclub services and settings in violation of their approved eating establishment licence.

 

4. City Council request the Executive Director, Municipal Licensing and Standards, in consultation with the City Solicitor, to review Toronto Municipal Code Chapter 545 provisions and classifications relating to eating establishments and entertainment establishments/nightclubs to identify needs for By-law amendments.

 

5.  City Council request the Executive Director, Municipal Licensing and Standards, as part of the review of the Chapter 545 provisions to be undertaken in Part 4 above, to consult with the public and stakeholders, including Business Improvement Areas, business owners, resident groups, and the General Manager, Economic Development and Culture, on the licensing requirements for entertainment establishments/nightclubs and eating or drinking establishments and to report back to the Licensing and Standards Committee by the third quarter of 2018 or as soon as possible with recommendations to improve the licensing categories to better reflect current nightlife in Toronto.

 

6. City Council request the Executive Director, Municipal Licensing and Standards, to consult with the Toronto Music Industry Advisory Council and live music venue operators in the City as part of the review of Municipal Code Chapter 545.

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 Three: Eating Establishments and Nightclubs
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108174.pdf
Audit at a Glance - A Review of the Municipal Licensing and Standards Division's Management of Business Licences - Part Three: Eating Establishments and Nightclubs
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108175.pdf
Attachment 1: A Review of the Municipal Licensing and Standards Division's Management of Business Licences - Part Three: Eating Establishments and Nightclubs
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108176.pdf
(October 13, 2017) Placeholder Report from the Auditor General regarding a Review of Municipal Licencing and Standards Division's Management of Business Licences - Part Three: Eating Establishments and Nightclubs
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108035.pdf
(October 27, 2017) Presentation material submitted by the Auditor General
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108295.pdf

Motions (City Council)

1 - Motion to Amend Item (Additional) moved by Councillor Josh Colle (Carried)

That City Council request the Executive Director, Municipal Licensing and Standards, to consult with the Toronto Music Industry Advisory Council and live music venue operators in the City as part of the review of Municipal Code Chapter 545.

Vote (Amend Item (Additional)) Nov-08-2017 11:54 AM

Result: Carried Majority Required - AU10.4 - Colle - motion 1
Total members that voted Yes: 41 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Michael Ford, Mary Fragedakis, Mark Grimes, Jim Hart, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Neethan Shan, David Shiner, John Tory, Lucy Troisi, Kristyn Wong-Tam
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 4 Members that were absent are Joe Cressy, Paula Fletcher, Michelle Holland, Michael Thompson

2 - Motion to Amend Item (Additional) moved by Councillor Kristyn Wong-Tam (Carried)

That, as part of the review of the By-law provisions to be undertaken in Audit Committee Recommendation 4,  City Council request the Executive Director, Municipal Licensing and Standards to consult with the public and stakeholders, including Business Improvement Areas, business owners, resident groups, and the General Manager, Economic Development and Culture, on the licensing requirements for entertainment establishments/nightclubs and eating or drinking establishments and to report back to the Licensing and Standards Committee by the third quarter of 2018 or as soon as possible with recommendations to improve the licensing categories to better reflect current nightlife in Toronto.


Motion to Adopt Item as Amended (Carried)

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

Decision Type:
ACTION
Status:
Adopted
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 existing definition of "entertainment establishments/nightclubs" in By-law 545 to identify the necessary changes that will strengthen the Division's inspection and enforcement efforts relating to licensed eating establishments operating as unlicensed nightclubs.

 

2. City Council request the Executive Director, Municipal Licensing and Standards Division, to review and amend the existing licence application form for eating establishments and nightclubs to ensure relevant information including the number of seats is obtained to facilitate the correct determination of the type of licence to be issued.

 

3. City Council request the Executive Director, Municipal Licensing and Standards Division, to develop and implement a risk-based follow-up inspection process after licence issuance that will require officers to visit selected eating establishments to confirm they are not offering nightclub services and settings in violation of their approved eating establishment licence.

 

4. City Council request the Executive Director, Municipal Licensing and Standards Division, in consultation with the City Solicitor, to review By-law 545 provisions and classifications relating to eating establishments and entertainment establishments/nightclubs to identify needs for By-law amendments.

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 contained in three separate reports. This report, Part 3, focuses on licensed eating establishments potentially operating as unlicensed nightclubs.

 

Improperly licensed nightclubs could pose a health and safety risk, and often lead to more noise complaints.

 

Our audit identified a number of eating establishments potentially operating as unlicensed nightclubs. Much of the problem stems from how the By-law defines a nightclub. Because of the problematic definition, MLS officers have difficulties in enforcing the laws. The By-law definition should be amended to better delineate the difference between an eating establishment and a nightclub.

 

The licence application process does not require applicants to provide certain crucial information, such as the number of seats. Including this information would help MLS staff ensure businesses are being properly licensed.

 

We provide four recommendations in this report to help the City to better address this issue.

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 Three: Eating Establishments and Nightclubs
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108174.pdf
Audit at a Glance - A Review of the Municipal Licensing and Standards Division's Management of Business Licences - Part Three: Eating Establishments and Nightclubs
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108175.pdf
Attachment 1: A Review of the Municipal Licensing and Standards Division's Management of Business Licences - Part Three: Eating Establishments and Nightclubs
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108176.pdf
(October 13, 2017) Placeholder Report from the Auditor General regarding a Review of Municipal Licencing and Standards Division's Management of Business Licences - Part Three: Eating Establishments and Nightclubs
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108035.pdf
(October 27, 2017) Presentation material submitted by the Auditor General
https://www.toronto.ca/legdocs/mmis/2017/au/bgrd/backgroundfile-108295.pdf

Speakers

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

Motions

1 - Motion to Adopt Item (Carried)
Source: Toronto City Clerk at www.toronto.ca/council