Title
Structured Sober Living Home Licensing Program (Ordinance G-6453)
Description
Request to amend Chapter 10 and Chapter 19 of the Phoenix City Code to establish a structured sober living home licensing program to be effective July 1, 2018 and contingent on allocation of the related staff and funding requested in the City Manager's Trial Budget for Fiscal Year 2018-19.
Report
Summary
The proposed licensing program was developed in response to City Council direction after the State passed legislation in 2016 empowering municipalities to regulate structured sober living homes. It reflects the efforts of a working group representing a broad range of community and industry stakeholders convened by the Planning and Development Department in 2017 and the input of the Law, Planning and Development, Neighborhood Services and City Clerk departments.
The proposed ordinance (Attachment A) establishes:
- Definitions related to the licensing program.
- Application and license requirements for structured sober living home owners, managers and homes.
- Minimum operation and supervision standards.
- Basis for denial of a license application/renewal.
- Inspection and criminal history review standards.
- Criteria for suspension, revocation, and other penalties.
- Notification and appeal procedures.
The ordinance also enumerates the related application fees:
- Structured sober living home license $1,500
- Structured sober living home license annual renewal $1,500
- Structured sober living home manager $200
- Structured sober living home manager annual renewal $40
Based on a preliminary estimate of 400 homes and 800 managers, funding is proposed in the City Manager's 2018-19 Trial Budget for training, equipment, supplies, two licensing staff in the City Clerk Department to administer the application and renewal processes, and five inspection staff in the Neighborhood Services Department to conduct inspections and enforce licensing requirements.
Pending State legislation related to sober living homes is being monitored and could impact the scope and cost of the program in the future.
Financial Impact
License application and renewal fees will be charged to recover the costs to the City of the application process and the required inspections. Funding for enforcement is contingent upon approval of the 2018-19 Trial Budget. The estimated impact to the General Fund of $235,000 in the first year is based on preliminary estimates of the number of homes and managers. The total cost will change if the scope of licensing, total number of applicants or proposed application fees are modified in any way.
Concurrence/Previous Council Action
The City Council approved a Group Home Comprehensive Improvement Package that included a conceptual framework for a Structured Sober Living Home licensing program on Dec. 13, 2017. The motion to approve the package included direction to staff to develop a proposed ordinance and incorporate a requirement for annual inspection as part of the license renewal process for structured sober living homes.
Public Outreach
Following Council approval of the conceptual framework in December 2017, staff developed and posted proposed fees and a draft ordinance in January 2018 and February 2018, respectively. More than 900 community and industry stakeholders were notified of the draft ordinance via email and an additional 240 via mail, and a public meeting was held to discuss the proposed program and ordinance. More than 30 individuals attended the public meeting on Feb. 22, and 15 offered comments at that hearing. Staff also received comments via email and telephone and attended other meetings with stakeholders and the Group Home Work Committee to answer questions and accept input.
Stakeholders provided input regarding the proposed licensing program and ordinance, application fees, disclosure of home addresses, application requirements, fingerprinting and background checks, criteria for denial, suspension and revocation of licenses, drug testing of residents, work/volunteer requirements for residents, operations standards and homes rules and regulations, inspections, frequency of renewal inspections, penalties and overall applicability of the proposed ordinance. Comments on these issues reflected significant diversity of opinion among a wide range of stakeholders.
Elements of the initial draft ordinance that were modified based on public input include:
- Addition of a requirement that applicants disclose all business names under which they operate other homes.
- Removal of the high school diploma or GED requirement for managers.
- Clarification that parole/probation will be a basis for denial only if the parole/probation is related to one of the offenses specifically listed in the ordinance as a basis for denial.
- Revisions to the requirements related to manager presence on site to allow managers to be off premises on a limited basis.
- Exemption from work/volunteer requirements for residents who are diagnosed with a disability (including mental illness) that prevents them from meeting the requirement.
- Clarification of reasonable accommodation procedure for license applications.
- Exemption for homes that do not provide meals from the requirement to post/inform residents of meal schedules.
- Clarification that unpaid taxes or fees are only a basis for denial for a structured sober living home license, not a manager license.
Department
Responsible Department
This item is submitted by Acting Deputy City Manager Toni Maccarone and the City Clerk Department.