REPORT TO COUNCIL Report Number:

CS-035-2016

Department:

Building Department

Meeting Date:

May 30, 2016

Subject:

Proposed Building Permit Fee By-law Revisions to Establish Cost Stabilization Reserve Fund

RECOMMENDATION: Be It Resolved, that Council of Township of Clearview hereby: 1) 2)

Receives this Report for Information. That a Draft Fees By-law Amendment be prepared in accordance with option #3 for Councils consideration.

BACKGROUND: Staff were requested by Council to review the current building permit fee structure and provide a report with respect to establishing a “Building Permit Cost Stabilization Fund”. The information has been gathered, analyzed and provided in this report. Part of Section 7 of the Building Code Act permits a Council of a municipality to pass a by-law prescribing classes of permits requiring the payment of fees on application for, and issuance of permits and prescribing the amounts thereof. Section 7(2) of the Building Code Act states that the total amount of fees authorized must not exceed the anticipated reasonable costs of administration and enforcement. The Building Code Act requires that notice of the proposed changes in fees be given to such persons as prescribed and that a public meeting be held concerning the proposed changes within the period specified by regulation before the regulation, bylaw or resolution to implement the proposed changes are made.

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A Notice of Public Meeting was made available May 5, 2016 of a Public Meeting to be held on May 30th, 2016 for Proposed Building Permit Fee Revisions. Municipalities are expected to calculate both the direct and indirect costs of administration and enforcement of the Act. A municipality must identify how surplus revenues or a reserve fund are used where the fees collected in a given year exceed the cost of the service provided. A Building Permit Cost Stabilization Reserve Fund may be established to offset the costs of the building inspection service in years where the building permit fee revenue is less than the cost of providing the building inspection service. The reserve fund may only be spent on Clearview Building Department related services. The Clearview Building Department Annual Building Permit Fee Reports have shown the department has ran a deficit for 8 of the past 10 years. Refer to attached Schedule #1 “Building Department Reserve Fund Balance December 31, 2015”. The current Fees & Charges By-law for building permit fees does not accurately or effectively cover the full cost of administration, inspection and enforcement of building permits as well as maintaining a Building Permit Cost Stabilization Fund. In 2008 Clearview underwent a building permit fee review prepared by Tunnock Consulting Ltd. The following analysis is modelled from that report, specific to the Clearview Building Department. The 2008 Tunnock Report is attached refer to attached Schedule #2 “Tunnock Report June 2008”. The Tunnock Report had recommended a Building Permit fee structure based on 100% cost recovery and a fees structure based on 115% cost recovery. The fees based on 115% cost recovery was designed to generate a cost stabilization reserve fund. At the time of the 2008 building permits by-law review the adoption of the Tunnock Reports recommendation of 115% cost recovery was not realized. The attached Schedule#3 illustrates that had the 115% cost recovery designed to generate a cost stabilization reserve fund been established in 2008 the Building Department would not have a deficit of $-319,063.74 but rather a positive reserve balance of +$19,244.43. Based on the 2015 Annual Building Permits Fee Report which highlighted Building Department deficit of $-319,063.74, Council has requested that the Building Department revisit the establishment of a Building Department Cost Stabilization Fund. The applicable Building Code Act and Building Code Regulations are as follows. Building Code Act, S.O. 1992, c.23 as amended Page 2 of 9

By-laws, resolutions, regulations 7. (1) The council of a municipality or of an upper-tier municipality that has entered into an agreement under subsection 3 (5) or a board of health prescribed for the purposes of section 3.1 may pass by-laws, a planning board prescribed for the purposes of section 3.1 may pass resolutions and a conservation authority prescribed for the purposes of section 3.1 or the Lieutenant Governor in Council may make regulations, applicable to the matters for which and in the area in which the municipality, upper-tier municipality, board of health, planning board, conservation authority or the Province of Ontario, respectively, has jurisdiction for the enforcement of this Act, (a) prescribing classes of permits under this Act, including permits in respect of any stage of construction or demolition; (b) providing for applications for permits and requiring the applications to be accompanied by such plans, specifications, documents and other information as is prescribed; (b.1) subject to the regulations made under subsection 34 (2.1), establishing and governing a program to enforce standards prescribed under clause 34 (2) (b), in addition to any programs established under subsection 34 (2.2); (b.2) subject to the regulations made under subsection 34 (2.2), governing a program established under subsection 34 (2.2); (c) requiring the payment of fees on applications for and on the issuance of permits, requiring the payment of fees for maintenance inspections, and prescribing the amounts of the fees; (c.1) requiring the payment of interest and other penalties, including payment of collection costs, when fees are unpaid or are paid after the due date; Fees

(2) The total amount of the fees authorized under clause (1) (c) must not exceed the anticipated reasonable costs of the principal authority to administer and enforce this Act in its area of jurisdiction. 2002, c. 9, s. 11 (2). Reduction in fees (3) A regulation, by-law or resolution establishing fees under clause (1) (c) must provide for reduced fees to be payable in respect of the construction of a building for which a registered code agency is appointed under section 4.2. 2002, c. 9, s. 11 (2). Report on fees (4) Every 12 months, each principal authority shall prepare a report that contains such information as may be prescribed about any fees authorized under clause (1) (c) and costs of the principal authority to administer and enforce this Act in its area of jurisdiction. 2002, c. 9, s. 11 (2). Same (5) The principal authority shall make its report available to the public in the manner required by regulation. 2002, c. 9, s. 11 (2).

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Change in fees (6) If a principal authority proposes to change any fee imposed under clause (1) (c), the principal authority shall, (a) give notice of the proposed changes in fees to such persons as may be prescribed; and (b) hold a public meeting concerning the proposed changes. 2002, c. 9, s. 11 (2); 2006, c. 22, s. 112 (6). Same, notice (7) The notice of proposed changes in fees must contain the prescribed information, including information about the public meeting, and must be given in the prescribed manner. 2002, c. 9, s. 11 (2). Same, public meeting (8) The public meeting concerning proposed changes in fees must be held within the period specified by regulation before the regulation, by-law or resolution to implement the proposed changes is made. 2002, c. 9, s. 11 (2). Fees may be added to tax roll (8.1) Section 398 of the Municipal Act, 2001 or section 264 of the City of Toronto Act, 2006, as the case may be, applies, with necessary modifications, to fees established by a municipality or local board under clause (1) (c) and, with the approval of the treasurer of a local municipality, to fees established under clause (1) (c) by a conservation authority whose area of jurisdiction includes any part of the local municipality. 2006, c. 22, s. 112 (7). O.Reg. 350/06 - Division C – Part 1 Administrative Provisions 1.9.1. Fees 1.9.1.1. Annual Report (1) The report referred to in subsection 7 (4) of the Act shall contain the following information in respect of fees authorized under clause 7 (1) (c) of the Act: (a) total fees collected in the 12-month period ending no earlier than three months before the release of the report, (b) the direct and indirect costs of delivering services related to the administration and enforcement of the Act in the area of jurisdiction of the principal authority in the 12-month period referred to in Clause (a), (c) a break-down of the costs described in Clause (b) into at least the following categories: (i) direct costs of administration and enforcement of the Act, including the review of applications for permits and inspection of buildings, and (ii) indirect costs of administration and enforcement of the Act, including support and overhead costs, and (d) if a reserve fund has been established for any purpose relating to the administration or enforcement of the Act, the amount of the fund at the end of the 12-month period referred to in Clause (a). Page 4 of 9

(2) The principal authority shall give notice of the preparation of a report under subsection 7 (4) of the Act to every person and organization that has requested that the principal authority provide the person or organization with such notice and has provided an address for the notice. 1.9.1.2. Change of Fees (1) Before passing a by-law, regulation or resolution under clause 7 (1) (c) of the Act to introduce or change a fee imposed for applications for a permit or for the issuance of a permit, a principal authority shall, (a) hold at least one public meeting at which any person who attends has an opportunity to make representations with respect to the matter, (b) ensure that a minimum of 21 days notice of the public meeting is given in accordance with Clause (c), including giving 21 days notice to every person and organization that has, within five years before the day of the public meeting, requested that the principal authority provide the person or organization with such notice and has provided an address for the notice, (c) ensure that the notice under Clause (b), (i) sets out the intention of the principal authority to pass the by-law, regulation or resolution under section 7 of the Act and whether the by-law, regulation or resolution would impose any fee that was not in effect on the day the notice is given or would change any fee that was in force on the day the notice is given, (ii) is sent by regular mail to the last address provided by the person or organization that requested the notice in accordance with Clause (b), and (iii) sets out the information described in Clause (d) or states that the information will be made available at no cost to any member of the public upon request, and (d) make the following information available to the public: (i) an estimate of the costs of administering and enforcing the Act by the principal authority, (ii) the amount of the fee or of the change to the existing fee, and (iii) the rationale for imposing or changing the fee. COMMENTS AND ANALYSIS: The Building Department has gone back to the 2008 Tunnock Consulting Ltd. Report to review available options for the consideration of a Building Department Cost Stabilization Fund. The report at that time proposed 2 options: 1. Adjusting the fees 100% cost recovery; 2. Adjusting the fees to generate a surplus by creating a Cost Stabilization Fund of 115%.

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The current building permit fee schedule was adopted in 2008 based on option 1 adjusting the fees 100% cost recovery. Since that time the building permit fee schedule has had 2 housekeeping modifications with no increase in general fees. The Clearview Building Department Annual Building Permit Fee Reports have shown the Department has ran a deficit for 8 of the past 10 years. Refer to attached Schedule #1 “Building Department Reserve Fund Balance December 31, 2015”. The current Fees & Charges By-law for building permit fees does not accurately or effectively cover the full cost of administration, inspection and enforcement of building permits as well as maintaining a Building Permit Cost Stabilization Fund. The 2008 Tunnock Consulting Ltd. Report is attached refer to attached Schedule #2 “Tunnock Report June 2008”. The Tunnock report had recommended a building permit fee structure based on 100% cost recovery and a fees structure based on 115% cost recovery. The fees based on 115% cost recovery was designed to generate a cost stabilization reserve fund. At the time of the 2008 building permits by-law review the adoption of the Tunnock Consulting Ltd., reports recommendation of 115% cost recovery was not realized. The attached Schedule#3 illustrates that, had the 115% cost recovery designed to generate a cost stabilization reserve fund been established in 2008, the Building Department would not have a deficit of $-319,063.74 but rather a positive reserve balance of +$19,244.43. Refer to Schedule #3 “Hypothetical 115% Building Department Reserve Fund Balance December 31, 2015”. This was not the anticipated outcome at that time of the 2008 building permit bylaw adoption. Following the adoption the 2008/09 economic turndown occurred. With no existing cost stabilization fund to draw on a deficit was formed. Since that time it is common practice for all municipalities to have a Building Department Cost Stabilization Fund in place. The establishment of such a fund is necessary. Municipalities can however, choose to artificially subsidize building permit fees and pay for deficits through the general tax levy. This has not been the Clearview goal with regards to building permit fees. Adopting the recommendation of the Tunnock Report to establish a 115% Building Permit Cost Stabilization Fund at this time is a logical next step.

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Other Jurisdictions Building permit fee comparisons were reviewed as part of this report. Attached is Schedule #4 “Building Permit Fee Comparison for Simcoe County”. The most significant component of the Clearview Building Departments activity is residential construction. Consequently to make the building permit fee information useful, a “typical model” home was used to apply the different municipal variable building permit fees. The existing Clearview Building permit fees are the 3rd lowest, $810.00 less than the County average. With the consideration of the proposed 115% Building Permit Cost Stabilization Fund, the fees for Clearview would be below average for Simcoe County $499.00 less than the County average and comparable with our neighboring municipalities. Existing Building Permit Fee Schedule The existing Building Permit Fee Schedule is attached for Councils information. Refer to Schedule #5 “Existing Building Permit Fee Schedule”. Proposed Building Permit Fee Schedule based on 115% Cost Stabilization Fund The proposed Building Permit Fee Schedule based on 115% Cost Stabilization Fund as recommended in the 2008 Tunnock Consulting Ltd., report is attached for Councils information. Refer to Schedule #6 “Draft 2016 Proposed Building Permit Fee Schedule”. Indexing In the future building permit fee by-Laws, indexing should be included. Building permit fees imposed pursuant to the By-law would be adjusted annually, on January 1st of each year. The indexing increase would be in accordance with the prescribed construction index used to update the Development Charges By-law as determined by the Treasurer based on the Construction Index twelve month period ending September 30th. This approach would maintain the fees in a regular manor eliminating major adjustments in the future.

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Options for Councils consideration Council has the following options under the Building Code Act. 1. Retaining status quo i.e. no adjustment in fees. The general tax levy would absorb existing deficit and continue to subsidize future deficits. 2. Retaining status quo i.e. no adjustment in fees. The general tax levy would subsidize future deficits. This does not address the existing deficit. 3. Adjust fees to 115% actual operating cost as per the 2008 Tunnock Report recommendation. Annualize building permit fees similar to the Development Charges By-law with annual Construction Indexing as established by the Treasurer. CLEARVIEW STRATEGIC PLAN: This report supports Goal 5: “Service Excellence” of the Strategic Plan. The report which serves to provide financial transparency implements Strategic Action 5.1 Undertake regular evaluations and performance measurement of delivery of municipal services. Establishing a Building Permit Cost Stabilization Reserve fund based on the goal to provide 115% user cost recovery system works toward strategic plan Goal #3 Municipal Services developed to manage and meet current and future needs. COMMUNICATION PLAN: Following Councils acceptance of this report and recommendations, staff will prepare a Draft Fees By-law Amendment to be prepared based on Councils recommendation. FINANCIAL IMPACT: If Council approves an increase in the building permit fees, there will be a positive financial impact on the municipality. The Building Department has an accumulated a deficit of -$319,063.74 since 2007. This report and the proposed revised fee schedule as a result of the Tunnock Consulting Ltd. Report should result in a 100% user fee cost recovery system while establishing a Building Permit Cost Stabilization Fund. With the passage of the proposed By-Law amending Schedule “B” Building Permit Fees, the municipality will be better able to provide a 100% user cost recovery system and provide for service delivery continuity and financial stabilization during an economic downturn.

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There is no effect on the current 2016 Clearview Budget with any option Council Chooses. REPORT SCHEDULES: Schedule #1 Building Department Reserve Balance December 31, 2015 Schedule #2 Tunnock Consulting Ltd. Report June 2008 Schedule #3 Hypothetical 115% Building Department Reserve Fund Balance December 31, 2015. Schedule #4 County of Simcoe Fees Comparison Schedule #5 Existing Building Permit fee Schedule. Schedule #6 Draft 2016 Proposed Building Permit Fee Schedule. PREPARED BY: A. Scott McLeod, CBCO, Chief Building Official REVIEWED BY: Mara Burton, BAA, MCIP, RPP Director of Community Services

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Schedule #1

Building Department Reserve Fund Balance December 31, 2015

Building Department Reserve Fund Balance December 31, 2015 1.

Amount of Reserve Fund established to administer and enforce the Building Code Act: 2. Reserve Opening Balance January 1st 2008 3. Deficit for 2007 4. Deficit for 2008 5. Deficit for 2009 6. Deficit for 2010 7. Surplus for 2011 8. Deficit for 2012 9. Deficit for 2013 10. Surplus for 2014 11. Deficit for 2015 12. Deficit Closing Balance 2015

$0.00 -$49,165.75 -$29,291.82 -$93,166.31 -$24,605.42 +$24,967.36 -$42,581.45 -$73,321.35 +$1,137.00 -33,036.00 -$319,063.74

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SCHEDULE #2

Township of Clearview Building Permit Fee Review Final Report

Tunnock Consulting Ltd. 1 Sherbrooke Street East, Suite 302 Perth, Ontario, K7H 1A1 Tel. 613 326-0040 Fax. 613 326-0030 E-mail: [email protected] Website: www.tunnockconsulting.ca File P-1806

May 9, 2008 Revised June 10, 2008

TABLE OF CONTENTS Page 1.

Introduction ........................................................................................................................1

2.

Building Code Act ..............................................................................................................1

3.

Methodology .......................................................................................................................2

4.

Building Division Services and Other Support Services ................................................3

5.

Building Permit Activity....................................................................................................6

6.

Indirect Costs .....................................................................................................................7

7.

Direct Costs.........................................................................................................................8

8.

Total Revenue Generation for Direct and Indirect Costs ..............................................9

9.

Building Permit Fee Schedule .........................................................................................10

10.

Recommendations ............................................................................................................18

11.

Tables 1, 2, 3, 4 & 7 follow Page ..................................................................................19

Appendix 1 - Public Meeting Notice Appendix 2 - Annual Report - Building Permit Fees

i

TOWNSHIP OF CLEARVIEW PERMIT FEE REPORT 1.

Introduction The Township of Clearview (approximate population 14,088 1) has undertaken to review its responsibilities under Bill 124, the Amendment to the Building Code Act. This report addresses the issue of Building Permit Fees based on the requirements of the Building Code Act Amendment.

2.

Building Code Act Section 7 of the Building Code Act permits a council of a municipality to pass a by-law, “prescribing classes of permits...requiring the payment of fees on applications for and issuance of permits and prescribing the amounts thereof; (and) providing for refunds of fees under such circumstances as are prescribed”. Bill 124, “An Act to improve public safety and to increase efficiency in building code enforcement” makes significant changes to the Building Code Act, not the least of which is to establish greater accountability for the fees levied for building permits. Section 7 has been amended by setting out new requirements with respect to calculating fees and informing the public of changes to fees or the introduction of new fees. Section 7(2) states that the “The total amount of the fees authorized under clause (1) (c) must not exceed the anticipated reasonable costs of the principal authority to administer and enforce this Act in its area of jurisdiction”. The legislation imposes a high level test or “anticipated reasonable cost” without explicitly setting out the scope of those costs or what is reasonable. It does not indicate that the cost must be determined for each class or type of permit issued. Effective July 1, 2005, however, any changes to fees or the introduction of new fees will require any municipality to meet the requirements of the Act. Municipalities will be expected to calculate both the direct and indirect costs of administration and enforcement of the Act. Section 7(4) sets out the reporting requirements. An Annual Report on Fees and costs is required. Specifically, “Every 12 months, each principal authority shall prepare a report that contains such information as may be prescribed about any fees authorized under clause (1) (c) and costs of the principal authority to administer and enforce this Act in its area of jurisdiction”. The first Annual Report was due in the 1st quarter of 2007. Section 7(5) states that the report must be available to the public. The Municipality may wish to make the report available by posting it on the website or by whatever is the required Municipal procedure. The Annual Report does not have to be sent to the Province. 1

Statistics Canada, 2006 Census 1

Township of Clearview Building Permit Fee Review

Where there is a change in fees, Section 7(6) requires that Public Notice be given and a meeting held. However, notice of the meeting only has to be given to those who requested notice by writing to the Clerk of the municipality. The municipality must maintain a registry of those who have submitted a written request to be notified and have provided an address for the notice. This includes any person and organization who filed a request within the previous five years. Notice of the meeting must be sent by regular mail at least 21 days prior to the proposed meeting. A notice in the newspaper is not required unless the Municipality wishes to add this procedure to the mail out. Finally, the municipality must identify how surplus revenues or a Reserve Fund are used where, for example, the fees collected in any given year exceed the cost of the service provided and the surplus is carried over to the next fiscal year. The Cost Stabilization Reserve Fund may be used to offset costs where revenues in any given year do not meet projected costs, or where there are anticipated new costs (i.e. new staff or capital expenditures), which are projected in future years. There is no limit specified in the Act with respect to the size of the Reserve Fund. These funds may only be spent on Township of Clearview related services or on indirect costs where there is a building-related correlation. An example is in the replacement of computers in the Finance Department where those computers are used to log information on building fee revenues, purchases of supplies for the Township of Clearview Building Department, Township of Clearview budget etc. However, only a pro-rated share would be eligible (i.e. the portion of the cost of the computer that may be reasonably attributed to its use for recording/analysing Township of Clearview data). 3.

Methodology The steps in determining a proposed building permit fee structure were as follows: A.

Building permit activity was collected for the period 2002-2007 in order to determine the average level of activity in the municipality.

B.

Information was collected from the 2008 municipal budget in order to calculate direct and indirect costs related to building permit fees.

C.

Time allocation information was collected for municipal personnel who perform support services to the building service (indirect costs). This included Council, the CAO, Finance, Planning staff, Fire Chief, HR and IT staff. This allocation focussed on the time spent over the course of a year on building-related duties as a percentage of the total work year. This in turn was multiplied by the salary, benefits and overhead to determine the actual indirect costs for administration.

D.

Time allocation information was also collected on the average time spent by the 2

Township of Clearview Building Permit Fee Review

Chief Building Official and other Building Department staff in the processing of various types of building permits including receiving the application, reviewing building plans, conducting field inspections, carrying out records management and enforcement. This was used to determine the direct costs for enforcement.

4.

E.

The direct costs for administration were calculated as the overhead costs for Building multiplied by the percentage of the CBO’s time and other departmental staff spent on building-related duties.

F.

Suggested building permit fees were then calculated on the basis of various permit types by summing the total indirect and direct costs and dividing by the number of permits. An adjustment was made to the fee structure for minor permits such as a conditional permit, change of use permit, demolition permit, renewal permit and minor renovation permits (i.e. cross-subsidy).

G.

The Building permit fee schedule was determined on the basis of the suggested fees adjusted to a value per square foot for residential or other types on construction based on an average size of a residential or non-residential building. Other fees were calculated on the basis of a flat fee charge.

Building Department Services and Other Support Services The Municipality’s Building Department provide a very important service to the public by ensuring that buildings meet the requirements of the Ontario Building Code. Safe construction is paramount and due diligence exercised in enforcing the Code avoids municipal exposure to liability. Building officials are often the first contact the public has with their municipality. In the Township of Clearview, this function is carried out by staff in the Building Department. This consists of the following staff compliment: · Chief Building Official – A. Scott McLeod · 2 Building Inspectors – Scott Pattison, Ron Pittendreigh · 1 Building Clerk – Carol Cooksey The CBO reports to the Director of Planning and Development who in turn reports to the CAO. Peripheral support is provided by the CAO, Clerk, Treasury, the Planner, IT and the Director of Public Works. The CBO was appointed by By-law 07-94 under Section 3(2) of the Building Code Act on January 1, 1994. One Building Inspector (Pattison) was appointed by By-law 99-25 on April 21, 1999 and the other Building Inspector (Pittendreigh) was appointed by By-law 07-38 on June 27, 2007. The building officials within the Building Department staff spend 91.6% of their time on 3

Township of Clearview Building Permit Fee Review

the administration and enforcement of the Building Code Act. The Building Officials listed are all full time positions and are paid on the basis of a 35 hour work week. Building Permit Process The processing of applications for building permits, plan review, field inspections and records management is undertaken by the Building Department with the assistance of other support staff i.e. Treasury, IT, HR, Planning staff etc. The service is provided out of the Municipal office in Stayner. All staff have computer skills which are required for the use of the Land Manager software package used to record building permit activity and track applications and inspections. All Building Officials are certified to conduct their responsibilities under the Building Code Act. The processing of a building permit application in the Township of Clearview is similar to other Ontario municipalities. Given that the skill levels of the CBO and the Building Official are virtually comparable, plan review and inspections can be undertaken by either official with the workload being evenly split. The department is organized to ensure that one official is available in the municipal office on a regular bases to provide customer service. The Municipality uses the provincial application form (prescribed form) for an application. Applications are received at the front counter. The Building Clerk reviews the application, but building officials conduct a more thorough examination. Staff may assist the applicant in completing the required form by advising what fields might have to be filled out. A handout is used to explain the applicant’s responsibilities and the building permit process. Staff will then review the application for completeness. Sometimes a pre-consultation will be held with applicant to advise them of what other approvals are required. Applicants are responsible for obtaining external or other approvals (e.g. Planning, MTO, Conservation Authority, NEC etc.). The application may be processed in advance of obtaining all outside approvals as a service or efficiency measure (Note: permits are not issued, however, unless all approvals are in place). Fees are paid at the time the application is filed for simple permits where a calculation is not required. The Building Clerk receives and receipts fees. Otherwise, the fees are paid when the permit is issued. The Building Clerk enters data on application using the Land Manager program to record information for building permits and to generate building permit activity reports for CMHC/StatsCan and MPAC. The Building Clerk sets up a hard copy file for each application using the assessment roll number as the PIN. The file is then transferred to CBO, who reviews the application for compliance to zoning and applicable law. The CBO then assigns the file electronically to the appropriate Building Inspector and hard copy is 4

Township of Clearview Building Permit Fee Review

given to the inspector. The Land Manager program is used to track the status for each permit. If anything is outstanding, CBO will direct the applicant accordingly. Two sets of building drawings are required. The plan review of building drawings is conducted by a Building Inspector, with advice from the CBO, where required and corrections or changes where required are redlined on both sets of drawings. The applicant is advised of major issues and if additional information or changes in drawings are required the applicant will be expected to supply same. Once the review is completed, the inspector will update the data base including a calculation of the fees. The file is then returned to the CBO for final review and approval. The Building Clerk prepares the permit for issuance. Permits are typically issued in 5-7 business days for a single detached dwelling (time line is 10 days). The CBO signs off on permits, although one Inspector also has authority (Deputy and signs off on his permits). Permits are manually prepared at this point although the Municipality is moving towards an electronic form. The applicant is advised by phone by the Inspector when the permit is available to be picked up. The applicant is advised of the mandatory inspections required (listed on permit) and the applicant is required to contact the municipality when each of the affected stages of construction is ready for an inspection. Building Officials have 48 hours to conduct an inspection once the request is made. Typically inspections are carried out the same day the request is made. Inspections for a typical single detached dwelling include: • Site inspection for (septic) sewage disposal system location • Footing forms prior to pouring concrete • Backfill/foundation/drainage tiles • Plumbing below ground • Framing • Plumbing above ground • Insulation and vapour barrier • Wood stove • Occupancy • Final Interior and Exterior The number of inspections varies depending on whether call backs are required and whether some inspections can be combined. Eight to ten inspections are typical for a new single detached dwelling. A call back is a repeat inspection of a component of construction that was either not complete when the inspection was called for or to verify that a deficiency has been rectified. 5

Township of Clearview Building Permit Fee Review

Inspection reports are prepared manually following each inspection and the property owner or contractor is advised of the results and left with a copy of the inspection report. If not on site, copy is left on site. The information is recorded electronically in Land Management when the building official returns to the Municipal Office. The Municipality is moving toward the implementation of a new system to permit input of information in the field. Officials issue Orders as required although the primary focus is on voluntary compliance. The CBO has issued the occasional Stop Work Order, such as building without a permit. Building officials are authorized to review plans and conduct inspections based on their certification. The Land Manager System is designed such that it does not permit work to be assigned if an official is not qualified. The Municipality’s Goal is to have everyone qualified to do all inspections. All are qualified to conduct Part 8 inspections. Monthly reports are generated by the Land Manager system and are forwarded to the agencies required. Support services or related services to the Building Department are provided by Council, CAO, Finance Dept., IT/Systems officer, Planning, HR, Public Works and the Fire Chief. Council is responsible for establishing policies, adopting by-laws and receives monthly building reports. The CAO oversees the management of staff and policy formulation process. The Treasurer is responsible for the posting of fees, ledger, budget, audit and payroll functions. The Clerk prepares by-laws and Council agendas and is the custodian of municipal records while the human resources officers administer personnel records and payroll. Other indirect services include IT/systems support and Planning (for interpretation of zoning compliance, where required) and Fire for fire safety. New functions under Bill 124 have been fully implemented. The Municipality has implemented a Code of Conduct and operational policies have been put into place. Finally, a solicitor is available to provide legal counsel to municipal staff on buildingrelated matters. 5.

Building Permit Activity Table 1 sets out the building permit activity for the period 2002-2007. The number of residential permits averaged 77 per year. The average floor area for a single detached dwelling was 201.8 m2 [2,173 ft.2] (based on data from 2006 and 2007 residential permits). Major permits for non-residential activity, including major alterations/additions 6

Township of Clearview Building Permit Fee Review

and demolitions averaged 23.01 permits per year (ICI) while the average for farm buildings was 24/annum. In the category of minor permits, minor alterations of residential buildings, decks and garages, fences and pools etc. averaged 180 permits per year over the period 2002-2007. Septic tank inspections add another 12 permits on average The total average number of permits issued annually over the six year period was 367.83. Of this total, 153.5 permits are classified as major permits and 214.33 are minor permits. These figures were transferred to Table 4. 6.

Indirect Costs Table 2 sets out the Indirect Costs, or the costs that are provided by other functions, departments or support services in the municipality to the Building Department. These include Indirect Costs - Administration which consists of the costs of Council, the CAO, the Clerk’s Department, the Finance Department, the Planner and Fire Chief and IT/Systems. The costs for Council include salaries and benefits of $187,500 of which 0.5% has been allocated as their share in building related matters or $937.50. Added to this is the corresponding share of overhead calculated as 0.5 % of $40,000.00 or $200.00. The total costs for Council building-related operations is $1,137.50 (shown in Column I, Row 4 of Table 2). A similar approach was taken to identify the Indirect Costs - Administration for each of the other services. For example, From Table 2, in the Finance Department, staff spend approximately 3.0% of their time and as such, building-related salary and benefits costs are calculated as 3.0% of staff time multiplied by a salary and benefits cost of $330,190.00 or a total of $9,905.70 (Table 2, Column F, Row 11). Administrative overhead costs of $12,800.00 to operate the Clerks Department was multiplied by the average percentage of time of all staff providing support services or 3.0% (Table 2, Column G, Row 11).The total cost for the overhead for the Finance Department is calculated as 3.0% x $200,000.00 = $6,000.00 (Table 2, Column I, Row 11). Salary and overhead costs for Finance are $9,905.70 + $6,000.00 = $15,905.70. Salary and benefits costs were included in the hourly rates for all employees. The benefits include typical payroll burden of CPP, EI, WSIB, OMERS, EHT and health care benefits. The total Indirect Costs - Administration (salaries, benefits and overhead) is calculated as $52,831.50 (Table 2, Column I, Row 31). 7

Township of Clearview Building Permit Fee Review

Indirect Costs - Enforcement include legal costs of $1,000.00 (Column H, Row 28). These Costs were included in the Administration Costs of $52,831.50. The total Indirect Costs for Administration ($51,832.50) and Enforcement ($1,000.00) are $52,832.50. These costs have been transferred to Table 4. 7.

Direct Costs Direct Costs are the costs associated with the front line delivery of the Building Department function such as receiving building permit applications, plan review, field inspection, enforcement and administration. These costs are initially set out in Table 3 for 2007 and 2008. The figures from the 2008 budget have been used for the purposes of calculating Direct Costs. These include salaries and benefits of $244,775 and administration or overhead costs of $82,414 (Total = $327,189.00). Administration costs are typical costs essential to the operation of the Building Department such as uniforms, office supplies, mileage and association fees. A portion ($7,000.00 in 2008) is for training and certification of building officials as mandated by Bill 124. This is expected to be an ongoing cost. The total Direct Costs for Administration and Enforcement is $327,189.00. This assumes that Building Department staff spend 100% of their time on building-related duties. Given that the Building Department has other responsibilities the proportion of 91.6% is utilized for the purposes of this study. This proportion is the average of the time spent by the three building officials on the BCA. As such the net total Direct Costs for Administration and Enforcement that is recoverable under Bill 124 is 91.6% x $327,189 = $299,705.12 (rounded to $299,705). The recoverable costs for the overhead component is calculated as 91.6% x $82,414 = $75,491.22. NOTE: THE TOTAL ELIGIBLE COSTS WHICH MAY BE RECOVERED PURSUANT TO SECTION 7 OF THE BUILDING CODE ACT (AS AMENDED BY BILL 124) = INDIRECT COSTS OF $52,833 + DIRECT COSTS OF $299,705 = A GRAND TOTAL OF $352,538. Table 4 provides the Direct Costs for enforcement as well as a summary of both Indirect Costs and Direct Costs for each class of permit. To determine the Direct Costs of enforcement, a time allocation assessment (or the amount of time spent on average to complete the building permit process) was carried out for each of the Building Department staff who have a role in the building permit process. This time allocation was carried out for each of the classes of building permits shown in 8

Township of Clearview Building Permit Fee Review

Table 4. The total time was added up for each of four key components of the building permit process: · Plan Review · Inspections · Administration, and · Enforcement Added to this total is the time taken for administrative support staff (i.e. Building Clerk). The support services provided by this staff member for building related matters has been calculated as 1,015 hours (for all permits) or 55.8% of the staff members time (i.e. 1,015 hours ÷ 1,820 hours = 55.8%). (Source: Table 4, Rows 6 and 7.) To provide a specific example, the total (combined) time allocated (or spent) by Building Department staff member to carry out their responsibilities for the permits issued in a Group ‘C’ residential building, (i.e. a single detached dwelling is 19 hours) (Column B, Row 12 of Table 4). The salary and benefit costs associated with this time allocation are calculated as the average of all staff member’s hourly rate multiplied by the percentage of the benefits costs. The salary/benefits of the staff listed in Section 4 above is $43.87 for the CBO/hour, $33.96 for the Building Inspector and $25.69 for the Building Clerk. An example of the calculation to determine the staff member’s cost for a single detached dwelling is: Building Inspector Plan Review - 2 hours x $33.96 = $67.92 (Table 4, Column C, Row 8). The total Direct Costs for all staff working on a single detached dwelling is $651.80 (Table 4, Column C, Row 13). Added to this total is the cost per permit for the Building’s Administration or overhead of $285.65 per (major) permit, and the Indirect Costs per permit for Administration and Enforcement respectively of $344.17 and $2.72 respectively. The total is $1,490.48 per permit (Table 4, Column C, Row 17). It should be noted that the Direct and Indirect Administration Costs are divided across the major permit types only. This cross-subsidy reduces the costs of a minor permit for a deck, minor alteration etc. by approximately $835.96. This is intended to make the minor permits more affordable to consumers. The total average number of permits per year from Table 1 was 367.33/year (2002-2007). This was used to divide the costs for the Indirect Costs – Enforcement i.e. $1,000 ÷ 367.33 = $2.72. The Direct and Indirect Costs - Administration was divided among the major permits, for example, $52,831.50/153.5 = $344.17 (Table 4, Column C, Row 14). 8.

Total Revenue Generation for Direct and Indirect Costs Row 19 ‘Grand Total’ in Table 4 sums up all of the Indirect Costs and Direct Costs for each permit category. For example, the costs for a single detached dwelling (Group C 9

Township of Clearview Building Permit Fee Review

Residential) is $1,490.48 while the cost for a minor permit for a deck is $321.55. Total Revenues are shown for each class of permit i.e. Group A, B, D, E Commercial is calculated as 8.34 permits (from Table 1) multiplied by $1,934.80 = $16,136.23. The total for all permit types (Gross Revenue) is $297,204.33 (Table 4, Column AA, Row 20). This amounts to approximately 84% of the eligible costs (under Bill 124) cited above of $352,538. The shortfall in revenues over costs is ($55,334). (Note: the fees recommended in this report adjust the calculations in Table 4 for Direct Costs to ensure that there is full cost recovery. The difference in costs in Table 4 from what is required for full cost recovery (Table 7) is attributed to the methodology for estimating costs. Table 4 is based on the level of effort required to process a typical permit for each class of permit and does not reflect the variance in time that can occur from one permit to the next. As well, this study is not intended to be a detailed time management study that might otherwise account for how each employee accounts for all of his/her time in processing a range of permits. It is noted that the difference is cost estimates from cost recovery is approximately 16% (which covers off sick/holiday time etc). 9.

Building Permit Fee Schedule By-law 08-17 of the Township of Clearview was adopted under Section 7 of the Building Code Act and sets out, among other matters, the Schedule of fees for various categories or types of building permits. Table 5 sets out a comparison of fees based on the findings of this study with the Municipality’s Building By-law. The fees levied under By-law 08-17 are based on a combination of fixed fees and variable rate fees, the latter of which are charged out on a value of construction basis. The proposed fees in this report are based on a combination of fees based on square footage and flat fees. The fees in Table 6 are based on both 100% cost recovery as well as the fees that would be required to generate a Reserve Fund of 15% (i.e. 115% cost recover). This would generate a surplus of $52,717 (based on the 6 year average level of building permit activity) i.e. $404,162 - $351,445 = $52,717. The 15% is suggested as the additional revenues this will generate will serve to offset approximately two years of reduced revenues. For example, the average revenue from low density residential permits (over 6 years) was 77 permits/year or $154,000 @ $2,000/permit. The reduced activity in 2006 and 2005 of 65 and 61 permits respectively would generate a revenue loss of $53,000 i.e. (65 x $2,000) + (61 x $2,000) – (77 x $2,000 x 2) = $53,000. The Reserve Fund would be used to offset declines in fee revenues from a reduced level of permit activity and/or could be used for anticipated (new) operational or capital costs i.e. replacement of computers, replacement of municipal vehicles etc. (Note: Reserve funds could be used to offset operational and capital costs for other departments (Indirect Costs) where the costs are building related. For example, the Finance Department 10

Township of Clearview Building Permit Fee Review

may have to replace computers. Since those computers are used in part for recording building permit fee revenues or budget preparation, a proportion of the cost of their replacement could be taken from the Reserve Fund). This study should not be interpreted to limit the municipality from adjusting the ‘fixed’ fee to a variable rate where the ‘level of effort’ required to review plans and conduct inspections is greater than the ‘average’ level of effort. For example, a single detached dwelling of 4,000 ft.2 in floor area will require more time in the review of building plans and inspections than the average floor area of 2,173/ft.2 for a single detached dwelling. As a consequence it is reasonable to adjust the fees for larger projects based on a conventional cost per square foot basis. These adjustments are shown in Table 6 for each Class of Building Permit. Note: for the purposes of Table 6 and this report, this figure has been rounded up to 2,200 ft.2. The fees shown in Table 7 – Revenue Generation have been adjusted with several criteria in mind. First, off, the adjustments allow for consistency in the fees charged within certain occupancies i.e. new residential is levied at $2,000/dwelling unit (100% cost recovery) or $2,300 at 115% and for new non-residential construction at $3,000 (up to 2,500 ft.2) @ 100% or $3,450 @ 115%. Fees are rounded off for administrative convenience. The permit fee recommended for sewage disposal systems ($450.00) is the same as the current fee. Flat fees are recommended, again for convenience. The number of fee categories has been reduced to combine certain construction activities and includes provision for unique classes such as the construction of a communications tower, silo or wind turbine. For minor permits (i.e. under $25,000 construction value), it is conceded that fees are typically insufficient for cost recovery. This is attributed to the fact, that the construction values may be minor and that the fees can act as a deterrent to obtaining a building permit. Based on this study the base cost for providing the building service would be in the order of $835.96 (i.e. where the direct and indirect costs of administration are added to the base line fee) for all minor permits. Since this fee may be seen as unreasonable for a building permit for a garage or minor alterations, it is suggested that the municipality establish a base line fee or minimum fee of $125 for decks and pools, $250 for a garage and $300 for a minor extension to a dwelling plus a graduated fee for a floor area of 300 square feet or more i.e. $300 + $0.42/square foot. For the balance of minor permits i.e. change of use, permit renewal, signs, moving, conditional, etc., a comparable fee of $125.00 flat fee is suggested. Table 7 provides a summary of the revenue projections based on the recommended fees. It is acknowledged that there is a significant difference between the recommended fees and the new fees. The difference is attributed to the objective of achieving full cost recovery for the building inspection service and related support services. Council has 11

Township of Clearview Building Permit Fee Review

the following options under the Building Code Act: 1. 2. 3. 4.

Retaining the status quo i.e. no change in fees; Adjusting the fees to 100% cost recovery; Adjusting the fees to generate a surplus by creating a Cost Stabilization Reserve Fund of 115% Phasing in the fees over a period of time i.e. 2-3 years.

The revenues do not include provision for supplementary inspections over and above the mandated inspections ($50.00). Should the revenues exceed the cost recovery requirements, it is recommended that the municipality place these in a reserve fund as per the Building Code Act.

12

Township of Clearview Building Permit Fee Review

Table 5 - Comparison of Fees Category or Type of Fee

By-law 08-17

Building Permit Fee Study Table 4 Table 7

Group ‘C’ - Single Detached Dwelling (2,173 ft.2)1

$2,055.70

$1,490.48

$2,000.00 @ 100% or $2,300 @ 115%

Group ‘A’ Commercial (2,500 ft.2)2

$3,750.00

$1,534.35

$3,000.00 @ 100% or $3,450 @ 115%

Deck (300 ft.2)3

$100.00

$321.55

$125.00 @ 100% or $143.75 @ 115%

Sewage Disposal System4

$450.00

$156.27

$450.00 @ 100% or $517.50 @ 115%

Notes: 1. Permit fee is calculated as $0.90 x 3.000 ft.2 + $100.00 for the Occupancy/Final Inspection = $2,800.00. 2. Permit fee is calculated as ($150.00/ft.2 x 2,500 ft.2) x $10.00/$1,000 = $3,750.00. (Value of construction based on $150.00/ ft.2) 3. Permit fee is flat fee of $100.00 4. Permit fee for Class 4 is flat fee of $450.00 for a residential for a building.

13

Township of Clearview Building Permit Fee Review

Table 6 - Suggested Building Permit Fee Structure - Township of Clearview Category or Type of Fee

Fees Based on 100% Cost Recovery

Fees Based on 115% Cost Recovery

Base Line Fee

Adjusted Fee

Group ‘C’ - Low Density Residential • single detached • semi-detached (per unit) • duplex (per unit) • converted dwelling (per unit) • mobile home • apartment-in-ahouse

$2,000/dwelling unit up to 2,200 ft.2

$0.91/ft.2 for buildings with a floor area over 2,200 ft.2. Floor area applies to finished floor area and attached garage.

$2,300.00 for buildings up to 2,200 ft.2 and $1.05/ft.2 for buildings with a floor area over 2,200 ft.2. Floor area applies to finished floor area and attached garage.

Group ‘C’ - Multiple Residential (per unit) • townhouse • row dwelling • triplex • quadraplex • apartment • any other multiple unit dwelling • all other Group ‘ C’ occupancies (per unit)

$2,000/dwelling unit up to 2,200 ft.2

$0.91/ft.2 for buildings with a floor area over 2,200 ft.2. Floor area applies to finished floor area and attached garage.

$2,300.00 for buildings up to 2,200 ft.2 and $1.05/ft.2 for buildings with a floor area over 2,200 ft.2. Floor area applies to finished floor area and attached garage.

Group ‘C’ Residential - Major alterations, additions, suite) (≥$25,000 construction value) and

$1,400/dwelling unit up to 2,200 ft.2

$0.91/ft.2 for buildings with a floor area over 2,200 ft.2. Floor area applies to finished

$1,610.00 for buildings up to 2,200 ft.2 and $1.05/ft.2 for buildings with a floor area over 2,200

14

Township of Clearview Building Permit Fee Review

Table 6 - Suggested Building Permit Fee Structure - Township of Clearview demolitions for major floor area and ft.2. Floor area residential buildings attached garage. applies to finished floor area and attached garage. Group ‘C’ • attached deck • porch • minor alterations • minor additions • fire retrofitting • wood stoves/fuel burning appliances • pool • temporary buildings • stand alone plumbing • stand alone heating • refurbishing heating • all signs (per sign basis) • tank installation/removal (fuel, sewage) • replace/remedial work for Class 2, 3, or 5 tank or 2ndary review of application for any Class septic system. • other permits i.e. change of use, renewal, moving • demolition for single detached and two-unit dwellings • L.L.B.O application • retaining wall • per sanitary sewer connection

$0.91/ft.2 for minor extension to dwelling with a floor area over 300 ft.2 $0.42/ft.2 for other types of buildings or structures with a floor area over 300 ft.2.

$300.00 flat fee for minor extension to dwelling up to 300 ft.2 or $125/permit flat fee for other types of permits.

15

$143.75 up to 300 ft.2 or $125/permit flat fee for other types of permits and $0.48/ft.2 for buildings or structures with a floor area over 300 ft.2.

Township of Clearview Building Permit Fee Review

Table 6 - Suggested Building Permit Fee Structure - Township of Clearview • per water connection • per storm sewer connection • occupancy or final inspection when more than 2 years has passed since the building permit was issued • search of Simcoe Health Unit files for copy of permit • request for copy of permit • change of ownership

$287.50 up to 300 ft.2 and $0.48/ft.2 for buildings or structures with a floor area over 300 ft.2.

$250.00 up to 300 ft.2

$0.42/ft. for buildings or structures with a floor area over 300 ft.2.

Group ‘A’, ‘B’, ‘D’,‘E’ ‘F’- new construction, complete building or shell only

$3,000 up to 2,500 ft.2. Applies to the shell where only the shell is constructed or to the complete building where the permit is issued for both.

$1.20/ft.2 for buildings with a floor area over 2,500 ft.2. Applies to the shell where only the shell is constructed or to the complete building where the permit is issued for both.

$3,450 for buildings up to 2,500 ft.2 and $1.38/ft.2 for buildings with a floor area over 2,500 ft.2. Applies to the shell where only the shell is constructed or to the complete building where the permit is issued for both.

Group ‘A’, ‘B’, ‘D’,‘E’ ‘F’ - major additions or alterations (≥$10,000 construction value)

$2,000 up to 2,500 ft.2. Area applies to the area being altered or the area of

$0.80/ft.2 for buildings with a floor area over 2,500 ft.2. Area applies to

$2,300 for buildings up to 2,500 ft.2 and $0.92/ft.2 for buildings with a

Group C – • garage • carport • accessory building

2

16

Township of Clearview Building Permit Fee Review

Table 6 - Suggested Building Permit Fee Structure - Township of Clearview the addition. the area being altered floor area over 2,500 or the area of the ft.2. Area applies to addition. the area being altered or the area of the addition. Farm Buildings - new construction

$2,000 up to 10,500 ft.2

$0.19/ft.2 for buildings with a floor area over 10,500 ft.2.

$2,300 for buildings up to 10,000 ft.2 and $0.23/ft.2 for buildings with a floor area over 10,000 ft.2.

Farm Buildings additions, alterations, accessory buildings, hobby farms

$300 up to 5,000 ft.2

$0.19/ft.2 for buildings with a floor area over 5,000 ft.2.

$345 for buildings up to 10,000 ft.2 and $0.03/ft.2 for buildings with a floor area over 10,000 ft.2.

Group ‘A’, ‘B’, ‘D’,‘E’ ‘F’ - minor additions, alterations, retrofit, interior finishes, stand alone plumbing, stand alone heating

$700 up to 2,500 ft.2

$0.28/ft.2 for buildings with a floor area over 2,500 ft.2.

$805.00 for buildings up to 2,500 ft.2 and $0.32/ft.2 for buildings with a floor area over 2,500 ft.2.

Communication Tower/facility, silo, wind turbine

$300.00 flat fee

$300.00 flat fee

$345.00 flat fee

Non-Residential demolitions

$1,300 flat fee

$1,300.00 flat fee

$1,495.00 flat fee

Sewage Disposal Systems - new systems or replacement of Class 4 system or conversions

$450.00 flat fee

$450.00 flat fee

$517.50 flat fee

17

Township of Clearview Building Permit Fee Review

Other Fees The Township has set out other fees in By-law 08-17, not addressed in this report which Council may continue to apply. These include: 1. Conditional or partial permit – a 25% surcharge over the regular fee 2. Surcharge of 100% for a permit issued after construction has commenced 3. Additional inspection fees of $100 for 1st additional inspection and $200 for 2nd additional inspection where contractor/builder has depended unduly on the Township to identify deficiencies or provided advisory services. Our opinion is that item 1 and 3 is justifiable under the Building Code Act given the additional work that may be involved in preparing the agreement and reviewing the Plans. We would suggest that Council seek legal advice on the application of fees under items 2 and 3. Item 2, for example, is a matter that would be addressed under an Order and/or Provincial Offences Act. With respect to Item 3, based on our study, the actual cost per hour for additional inspections is $78.44 (Table 4: $1,490.48 ÷ 19 hours = $78.44), rounded to $80.00. This figure may be considered representative of the average cost for all categories of permits where additional inspections are required over and above those that are mandated by the Building Code Act. 10.

Recommendations This building permit fee study has determined the total Indirect Costs and Direct Costs for Administration and Enforcement based on the criteria set out in Section 7 of the Building Code Act. 1.

It is recommended that the Municipality establish a corporate policy on fee recovery. The suggested fees would generate revenues that would recover 115% of the eligible costs (assuming an average level of construction and the base line fees for each permit category). As such, is recommended that the municipality establish a Reserve Fund for anticipated new capital and operational costs and to offset reductions in fee revenues.

2.

It is recommended that extra inspections (i.e. inspection to clear deficient permit, post approval revisions, equivalents) should be charged out at the rate of $80.00/hour. A deficient permit may result from a call back or extra inspection triggered because the individual who requested the inspection was not ready when the inspector arrived etc.

3.

It is recommended that the minimum fee levels for fees be as set out in Table 6 for 100% cost recovery, 115% with the Cost Stabilization Reserve Fund 18

Township of Clearview Building Permit Fee Review

Note: The recommendations in this report do not preclude the Township of Clearview from establishing a fee structure that varies from the recommendations provided they do not exceed the legislative authority under the Building Code Act. Appendix 1 includes a sample Public Meeting Notice for a meeting convened under Section 7 of the Building Code Act to consider a change in fees or to introduce new fees. Appendix 2 sets out the format for the Annual Report on Building Permit Fees required by the Building Code Act. 11.

Tables

19

APPENDIX 1 PUBLIC MEETING NOTICE

PUBLIC MEETING Corporation of the Township of Clearview TAKE NOTICE that the Council of the Corporation of the Township of Clearview will hold a public meeting on the day of , 2008, at p.m., in the Council Chambers (217 Gideon Street, Stayner) in order to consider a proposed Building Permit Fee Bylaw under Section 7 of the Building Code Act. PURPOSE AND EFFECT -The Township of Clearview is proposing to adopt (amend) a Building Permit Fee By-law following a review of the building permit fees under Section 7(b) of the Building Code Act. The effect will be to increase (decrease) the existing fee structure (and add introduce a new fee). Information will be provided at the meeting on the estimated costs of enforcing and administering the Building Code Act, the amount of the proposed fee(s) and the rationale for changing (and/or imposing) fees. ANY PERSON may attend the public meeting and/or make written or verbal representation either in support of or in opposition to the proposed fees. ADDITIONAL INFORMATION related to the proposed fees is available during regular office hours at the municipal offices.

Dated at the Township of Clearview this

day of

, 2008.

Clerk Township of Clearview 217 Gideon Street, P. O. Box 200 STAYNER ON L0M 1S0 Tel. 705 428-6230 Fax. 705 428-0288 (Note: to be advertised a minimum of 21 days prior to the public meeting. Notice has only to be given to every person and organization that has within the last 5 years before the date of the public meeting, requested to be notified and has given the municipality an address.)

1

APPENDIX 2 ANNUAL MEETING REPORT BUILDING PERMIT FEES

Corporation of the Township of Clearview Annual Report - Building Permit Fees Total Fees (Revenues) collected for the period January 1, 200_ to December 31, 200_ under Bylaw No. ____, of the Township of Clearview ........................................................ $ __________ Costs of Delivering Services: Indirect Costs: Indirect Costs are deemed to include the costs for support and overhead services to the Building Department of the Township of Clearview as follows: Total Administration Costs ........................................................................................... $__________ Total Enforcement Costs............................................................................................... $__________ Sub-Total - Indirect Costs .......................................................................................... $__________ Direct Costs: Direct Costs are deemed to include the costs of the Building Department of the Township of Clearview for the processing of building permit applications, the review of building plans conducting inspections and building-related enforcement duties. Total Administration Costs ........................................................................................... $__________ Total Enforcement Costs............................................................................................... $__________ Sub-Total - Direct Costs ............................................................................................. $__________ Grand Total Indirect and Direct Costs ..................................................................... $__________ Revenues over costs as of December 31, 200_ .......................................................... $__________ Statement of Reserves: Building Department Reserve Fund (to December 31, 200_) ................................. $__________

1

Schedule #3

Hypothetical 115% Building Department Reserve Fund Balance December 31, 2015 The table that follows is a hypothetical review of what the Building Department reserve fund would look like had the 115% Building Permit Cost stabilization fund been realized in 2008.

Building Department Reserve Fund Balance December 31, 2015 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. *Has

Amount of Reserve Fund established to administer and enforce the Building Code Act: Reserve Opening Balance January 1st 2008 Deficit for 2007 Deficit for 2008 Deficit for 2009 Surplus for 2010 Surplus for 2011 Surplus for 2012 Deficit for 2013 Surplus for 2014 Surplus for 2015 Surplus Closing Balance 2015 not been adjusted based on 115% fees.

$0.00* -$49,165.75* -$29,291.82* -$57,502.00 +$23,894.00 +$81,142.00 +$4,037.00 -$27,869.00 +$52,877.00 +$21,123.00 +$19,244.43

Page 1 of 1

Building Permit Fee Comparison Simcoe County Municipalities

April 27, 2016

** Including Town of Blue Mountian

Schedule #4

Sample Single Family Dwelling 2,000 sq.ft.

CLEARVIEW EXISTING FEES

COLLINGWOOD

ESSA

2139

NEW TECUMSETH

11

2160

MIDLAND

10

2246

SEVERN

9

2296

PENETANGUISHENE

8

2385

ORILLIA

7

2505 2485 2480

SPRINGWATER

ADJALA-TOSORONTIO

6

2582 2557 CLEARVIEW PROPOSED FEES

WASAGA BEACH

5

BRADFORD WEST GWILLIMBURY

BARRIE

4

TAY

ORO-MEDONTE

3

2722

RAMARA

TINY

2

TOWN OF BLUE MOUNTIAN**

INNISFIL

$ 1

2994 2927 2887 2736

Clearview Existing Fee

Clearview Proposed Fee

Average

4532 4145 4139 3958 3270

Building Permit Fee

$3,056

4600 4400 4200 4000 3800 3600 3400 3200 3000 2800 2600 2400 2200 2000 1800 1600 1400 1200 1000 800 600 400 200

12

13

14

15

16

17

18

19

20

Schedule #5

BY-LAW NUMBER 13-71 OF

THE CORPORATION OF THE TOWNSHIP OF CLEARVIEW

Being a By-Law to amend Schedule "B" of By-Law 05-25

WHEREAS the Building Code Act, 1992, c23 as amended empowers Municipalities to pass ByLaws to set fees for Building Permits, etc. and held a public meeting in this regard. NOW THEREFORE the Council of the Corporation of the Township of Clearview enacts as follows:

1.

That the fees for building permits, etc. shall be according to Schedule "B" of this ByLaw.

2.

That Schedule "B" of By-Law Number 11-42 is hereby repealed

3.

That this By-Law shall come into force and effect on the date of final passing thereof.

By-Law Number 13-71 read a first, second and third time and finally passed this the 18th day of November 2013.

VJ CLERK

\f. la Mr£fce -c ^

SCHEDULE "B" TO BY-LAW 13-71

Building Permit Fee Structure - Township of Clearview Category or Type of Fee

Group'C -Low Density Residential • single detached •

semi-detached



(per unit) duplex (per



converted

Base Line Fee

Adjusted Fee

$2,000/dwelling unit up to 2,200 ft.2

$0.91/ft.2 for buildings with a floor area over 2,200 ft.2. Floor area applies to finished floor area and attached garage.

unit)

dwelling (per unit) •



mobile home

apartment-in-ahouse

Group'C' -Multiple Residential (per unit) •

townhouse



row dwelling



triplex



quadraplex



apartment



any other multiple unit dwelling



all other Group 'C'occupancies (per unit)

Group 'C Residential - Major alterations, additions, suite) (>$25,000 construction value) and demolitions for

major residential buildings

$2,000/dwelling unit up to 2,200 ft.2

$0.91/ft.2 for buildings with a floor area over 2,200 ft.2. Floor area applies to finished floor area and attached garage.

$l,400/dwelling unit up to 2,200 ft.2

$0.91/ft.2 for buildings with a floor area over 2,200 ft.2. Floor area applies to finished floor area and attached garage.

Building Permit Fee Structure - Township of Clearview Group 'C Residential (<$25,000 construction value) • porch • minor alterations • minor additions • attached deck

• fire retrofitting • wood stoves/fuel

burning appliances • temporary buildings • stand alone plumbing • stand alone heating • refurbishing heating • all signs (per sign basis) •tank installation/removal

(fuel, sewage) • replace/remedial work for Class 2,3, or

5 tank or 2ndary review of application for any Class septic system.

• other permits i.e. change of use, renewal,

moving • demolition for single detached and two-unit

dwellings • L.L.B.0 application • retaining wall • per sanitary sewer connection

• per water connection • per storm sewer connection

$300.00 flat fee for minor

extension to dwelling up to

$0.91/ft.2 for minor extension to dwelling with a floor area over 300

300 ft.2 or

ft.2 $0.42/ft.2 for other types of

$125/permit flat fee for other types of permits.

buildings or structures with a floor area over 300 ft.2.

Building Permit Fee Structure - Township of Clearview • occupancy or final inspection when more than 2 years has passed since the building permit was issued • search of Simcoe Health Unit files for

copy of permit • request for copy of permit • change of ownership Group C • Residential • pools

$125/permit flat fee for inground pool. $75.00/permit flat fee for above ground pool

Group C - Residential • Detached garage • Detached carport • accessory building

$250.00 up to 300ft.2

Group 'A', «B', 'D7E' 'F'- new construction, complete building or shell only

$3,000 up to 2,500 ft.2.

$0.42/ft.2 for buildings or structures with a floor area over 300 ft.2.

Applies to the shell where only the shell is constructed or to the complete building where the permit is issued

$1.20/ft.2 for buildings with a floor area over2,500 ft.2. Applies to the shell where only the shell is constructed or to the complete building where the permit is issued

for both.

for both.

Group 'A', 'B', 'DYE' 'F' - major

$2,000 up to 2,500 ft.2. Area applies to the area being

$0.80/ft.2 for buildings with a floor area over2,500 ft.2. Area applies to

additions or

altered or the area of the

the area being altered or the area of

alterations (£$10,000

addition.

the addition.

$700 up to 2,500 ft.2

$0.28/ft.2 forbuildings with a floor

construction value)

Group 'A', 'B', 'D','E' 'F' - minor additions, alterations, (<$10,000 construction value) retrofit, interior

finishes, stand alone plumbing, stand

alone heating

area over 2,500 ft.2.

Building Permit Fee Structure - Township of Clearview Farm Buildings new, additions, alterations, accessory buildings

$0.19/ft.2, Minimum permit

Polyethylene Film (plastic) Covered

Permit Fee $300.00 per greenhouse.

Greenhouse

fee $300.00

Designated Structure

$12.00 for each $1,000.00 of

as denned under

Construction Value.

1.3.1.1 Division A of

Minimum Permit Fee

the Ontario Building

$300.00

Code Non-Residential

$1,300 flat fee

$1,300.00 flat fee

$450.00 flat fee

$450.00 flat fee

demolitions

Sewage Disposal Systems - new systems or

replacement of Class 4 system or conversions

Partial Permit

25% surcharge over the regular fee.

Additional Inspection

$100.00 flat fee 1stadditional

Fee

inspection, $200.00 flat fee 2nd

Conditional Permit or

additional inspection Construction without

An Administrative

a Building Permit

Surcharge of the greater of

Administrative

$125.00 or 100% of the

Surcharge

permit fee will apply if construction has commenced

prior to the issuance of the building permit

CLASSIFICATION OF BUILDINGS BY MAJOR OCCUPANCY

For the purpose of this By-Law every building or part of it shall be classified according to its major occupancy as belonging to one of the groups as described in Division B Part 3, Table 3.1.2.1 of the Ontario Building Code. Group A Group BGroup CGroup DGroup EGroup F-

Assembly Occupancies Detention, Care and Treatment and Care Occupancies Residential Occupancies Business and Personal Service Occupancies Mercantile Occupancies Industrial Occupancy

Schedule #6 PROPOSED BY-LAW NUMBER _______ OF THE CORPORATION OF THE TOWNSHIP OF CLEARVIEW

Being a By-Law to amend Schedule “B” of By-Law 05-25 WHEREAS the Building Code Act, 1992, c23 as amended empowers Municipalities to pass ByLaws to set fees for Building Permits, etc. and held a public meeting in this regard. NOW THEREFORE the Council of the Corporation of the Township of Clearview enacts as follows: 1.

That the fees for building permits, etc shall be according to Schedule “B” of this ByLaw.

2.

That Schedule “B” of By-Law Number 11-42 is hereby repealed

3.

That this By-Law shall come into force and effect on the date of final passing thereof.

By-Law Number______ read a first, second and third time and finally passed this the ___ day of _______ 2016.

____________________________________ MAYOR

____________________________________ CLERK

PROPOSED SCHEDULE “B” TO BY-LAW _________

Building Permit Fee Structure - Township of Clearview Category or Type of Base Line Fee Adjusted Fee Fee Group ‘C’ - Low Density Residential • single detached • semi-detached (per unit) • duplex (per unit) • converted dwelling (per unit) • mobile home • apartment-in-ahouse

$2,300/dwelling unit up to 2,200 ft.2

$1.05/ft.2 for buildings with a floor area over 2,200 ft.2. Floor area applies to finished floor area and attached garage.

Group ‘C’ - Multiple Residential (per unit) • townhouse • row dwelling • triplex • quadraplex • apartment • any other multiple unit dwelling • all other Group ‘C’occupancies (per unit)

$2,300/dwelling unit up to 2,200 ft.2

$1.05/ft.2 for buildings with a floor area over 2,200 ft.2. Floor area applies to finished floor area and attached garage.

Group ‘C’ Residential - Major alterations, additions, suite) (≥$25,000 construction value) and demolitions for major residential buildings

$1,610/dwelling unit up to 2,200 ft.2

$1.05/ft.2 for buildings with a floor area over 2,200 ft.2. Floor area applies to finished floor area and attached garage.

Building Permit Fee Structure - Township of Clearview Group ‘C’ Residential (<$25,000 construction value) • porch • minor alterations • minor additions • attached deck • fire retrofitting • wood stoves/fuel burning appliances • temporary buildings • stand alone plumbing • stand alone heating • refurbishing heating • all signs (per sign basis) • tank installation/removal (fuel, sewage) • replace/remedial work for Class 2, 3, or 5 tank or 2ndary review of application for any Class septic system. • other permits i.e. change of use, renewal, moving • demolition for single detached and two-unit dwellings • L.L.B.O application • retaining wall • per sanitary sewer connection • per water connection • per storm sewer connection • occupancy or final inspection when more than 2 years has passed since the building permit was issued • search of Simcoe Health Unit files for copy of permit • request for copy of permit • change of ownership

$345.00 flat fee for minor extension to dwelling up to 300 ft.2 or $144/permit flat fee for other types of permits.

Group C - Residential • pools

$144.00/permit flat fee for in-ground pool. $86.00/permit flat fee for above ground pool

$1.05/ft.2 for minor extension to dwelling with a floor area over 300 ft.2 $0.48/ft.2 for other types of buildings or structures with a floor area over 300 ft.2.

Building Permit Fee Structure - Township of Clearview Group C - Residential • Detached garage • Detached carport • accessory building

$288.00 up to 300 ft.2

$0.48/ft.2 for buildings or structures with a floor area over 300 ft.2.

Group ‘A’, ‘B’, ‘D’,‘E’ ‘F’- new construction, complete building or shell only

$3,450 up to 2,500 ft.2. Applies to the shell where only the shell is constructed or to the complete building where the permit is issued for both.

$1.38/ft.2 for buildings with a floor area over 2,500 ft.2. Applies to the shell where only the shell is constructed or to the complete building where the permit is issued for both.

Group ‘A’, ‘B’, ‘D’,‘E’ ‘F’ - major additions or alterations (≥$10,000 construction value)

$2,300 up to 2,500 ft.2. Area applies to the area being altered or the area of the addition.

$0.92/ft.2 for buildings with a floor area over 2,500 ft.2. Area applies to the area being altered or the area of the addition.

Group ‘A’, ‘B’, ‘D’,‘E’ ‘F’ - minor additions, alterations, (<$10,000 construction value) retrofit, interior finishes, stand alone plumbing, stand alone heating

$805 up to 2,500 ft.2

$0.32/ft.2 for buildings with a floor area over 2,500 ft.2.

Farm Buildings – new, additions, alterations, accessory buildings

$0.23/ft.2 , Minimum permit fee $345.00

Polyethylene Film (plastic) Covered Greenhouse

Permit Fee $345.00 per greenhouse.

Designated Structure as defined under 1.3.1.1 Division A of the Ontario Building Code

$13.80 for each $1,000.00 of Construction Value. Minimum Permit Fee $345.00

Non-Residential demolitions

$1,495 flat fee

$1,495.00 flat fee

Sewage Disposal Systems - new systems or replacement of Class 4 system or conversions Conditional Permit or Partial Permit

$518.00 flat fee

$518.00 flat fee

25% surcharge over the regular fee.

Building Permit Fee Structure - Township of Clearview Additional Inspection $115.00 flat fee 1st additional inspection, Fee $230.00 flat fee 2nd additional inspection Construction without An Administrative Surcharge of the greater of a Building Permit $144.00 or 100% of the Administrative permit fee will apply if Surcharge construction has commenced prior to the issuance of the building permit

CLASSIFICATION OF BUILDINGS BY MAJOR OCCUPANCY For the purpose of this By-Law every building or part of it shall be classified according to its major occupancy as belonging to one of the groups as described in Division B Part 3, Table 3.1.2.1 of the Ontario Building Code. Group A Group BGroup CGroup DGroup EGroup F-

Assembly Occupancies Detention, Care and Treatment and Care Occupancies Residential Occupancies Business and Personal Service Occupancies Mercantile Occupancies Industrial Occupancy

INDEXING Building permit fees imposed pursuant to this By-Law shall be adjusted annually, without amendment to this By-Law, on January 1st of each year, Commencing January 1st 2017, in accordance with the prescribed index in the Act, based on the twelve month period ending September 30th.

report to council

Be It Resolved, that Council of Township of Clearview hereby: 1). Receives this ...... zoning compliance, where required) and Fire for fire safety. New functions ...

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