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HomeMy WebLinkAboutFCS-12-167 - Discretion Regarding Licensing FeesREPORT TO:Finance and Corporate Services Committee DATE OF MEETING: October 15, 2012 SUBMITTED BY: R. Gosse, Director of Legislated Services/City Clerk, 2809 PREPARED BY: Patricia Harris, Manager of Licensing, 2854 WARD(S) INVOLVED: DATE OF REPORT: September 28, 2012 REPORT NO.: FCS-12-167 SUBJECT: DISCRETION REGARDING LICENSING FEES RECOMMENDATION: For information purposes BACKGROUND: On June 25, 2012 Council requested a report clarifying the application of Municipal Code Chapter 549 and the discretion that staff uses in determining a lesser licence fee. The Cherry Hill Neighbourhood Association had come before Council requesting that the Temporary Retail Market licence fee be lowered after the Manager of Licensing had determined the full fee should apply to their event. REPORT: Chapter 549 of the City of Kitchener Municipal Code regulates the licensing of Temporary and Permanent Vendors as well as Temporary Retail Markets. A Temporary Retail Market is defined as a “market where goods or services are sold that has five or more vendors and is held for no more than 12 consecutive weeks in one calendar year. A charitable temporary retail market is a retail market with 5 or more vendors where all the proceeds from the event go to the charitable organization holding the event. In the event that the organization is only retaining the proceeds from the rental of the tables and each vendor is retaining any profits they derive, the event is no longer considered to be charitable. It is viewed as an event similar to those held at convention centres or hotels by professional organizers where the vendors are at the event to sell their goods and services and make a profit. Therefore, even if a charitable organization is hosting the event, the event would no longer be given the lesser charitable fee as the vendors are there to make profit. Chapter 501 of the City of Kitchener Municipal Code regulates Business Licence Fees. Section 501.2.5 states that where an application is made for a licence by a recognized, registered bona fide charitable organization, or where an application is made by an accredited entity or listed affiliate in relation to an event designated as a Civic Celebration by Council, the fee paid for such licence shall be the sum of 10% of the fee that would be otherwise payable. In cases of doubt as to the application of this Section, the Manager of Licensing shall refer the application to Council for a decision. é ó ï For the past several years the Manager of Licensing has used discretion when determining the licence fee for a particular event. Chapter 501.2.5 requires that an organization be a bona fide charitable organization which means that they are to be registered with the Federal Government as charitable before they would be considered for the lesser fee. This would preclude neighbourhood associations, service clubs and minor sports organizations from obtaining a licence for the lower licence fee. In most cases these organizations are not registered as a charitable organization even though they raise money for charitable purposes. It is understood that most of these organizations could not afford the maximum licence fees due to the size of the organization and their limited budgets. Therefore, the Manager of Licensing reviews each type of event that charitable and/or non-profit organizations apply for and determine whether a lower fee could apply. The Manager does not waive the fee. Any organization has the option to appeal the decision of the Manager of Licensing to Council. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Community Priority – Quality of Life To support the many special events and cultural activities which make Kitchener an exciting and vibrant city to live in and raise a family. FINANCIAL IMPLICATIONS: The fees for temporary retail markets and similar events have been taken into account when calculating Licensing’s revenue during the budget process. COMMUNITY ENGAGEMENT: Not applicable ACKNOWLEDGED BY: D. Chapman, Deputy CAO and City Treasurer, Finance and Corporate Services é ó î