Report to: Development Services                                                Date Report: October 6, 2009

 

 

SUBJECT:      Proposed Amendments to Development Fee, Building Fee and Town Wide Fee By-laws

                        Development Services Commission

 

PREPARED BY:       John Wright, Director of Building Standards, ext. 4712

                                    Jamie Bosomworth, Manager of Strategy and Innovation, ext 2180

                                   

RECOMMENDATION:

1)                  THAT the Report titled “Proposed Amendments to Development Fee, Building Fee and Town Wide Fee By-laws, Development Services Commission” dated October 6, 2009 be received:

 

2)                  And that the proposed amendments be referred to a public meeting of Development Services Committee, to be held on November 3, 2009;

 

3)                  And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

1. Purpose                     2. Background                      3. Discussion                        4. Financial        

 

5. Others (HR, Strategic, Affected Units)                                   6. Attachment(s)

PURPOSE:

The purpose of this report is to propose amendments to Development Fee By-law 211-83 respecting development applications, Building Fee By-law 2008-258 for building permit applications and Fee By-law 2002-276 for general services and documents. The by-laws set fees to be paid by direct users of Town development services, and are reviewed and updated on an annual basis.  This report is to refer the proposed amendments for 2010 to a public meeting of Development Services Committee, to be held on November 3, 2009.  

 

BACKGROUND:

The Development Fee By-law and the Building By-law are amended each year to recover the reasonable costs associated with the administration of both development applications and Building services related to the delivery of Ontario Building Code and Planning Act provisions.  The adjustments fall into one or more categories:

  • overall adjustments driven by a moving average of indirect and direct costs and changes to the consumer price index.
  • Refinements of existing fees to better reflect actual and anticipated costs of providing the related services
  • New fees to capture new or previously underfunded services

 

OPTIONS/ DISCUSSION:

Increased fees are required in 2010 to cover the projected increase in costs over the 2009 base.   These increases are a result of projected 2010 salary and benefit increases and general inflation and are calculated based on the past 5-year average volume development activity.  The proposed 2010 general rate increase for Planning/Urban Design component of the Development Fee is 2.7%, for the Engineering component of the Development Fee is 4.0% and for the Building Fee is 6.0%.   Adjustments to the categories within each fee by-law are also being proposed.  

 

 

Development Fee By-law

Within the Development Fee By-law, staff are proposing to maintain the fees for minor variances and heritage applications at current levels, as generally the applicants are local home owners and further increases may become a deterrent to filing of applications and potentially result in construction activity without proper permits and by-law compliance.     The fees associated with percentages of cost of works e.g. design and engineering fees for site plans and subdivisions and residential service connections, will also remain the same.

 

In addition to the flat rate increase of 2.7% for Planning and Urban Design and 4.0% for Engineering activities, Staff are also recommending the following adjustments to the existing categories within the Development Fee By-law:

 

  • Create a new section to cover General Fees associated with all activities, for example; additional public meetings or Council Committee reports, recirculation of drawings, and deterrent fees for 3 or more reviews of drawings and 3 or more inspections.
  • Increase the base and one time fees by approximately 10% of major applications (e.g. Official Plan Amendments, Zoning Amendments, Subdivisions, Site Plans, Condominiums and Consents) to cover increased staff time for pre-consultation requests, attending additional public meetings and more detailed discussions with applicants, due to increased complexity and consultations associated with of these applications.   (Note:  these fees are also being increased by the flat rate of 2.7%)

 

Activity

2009 Fees

Proposed 2010 Fees

OPA Minor

$9,130

$10,290

OPA Major

$24,270

$27,350

Zoning Minor

$8,470

$9,550

Zoning Major

$17,040

$19,200

Site Plan Base

$4,070

$4,480

Subdivision Base

$13,380

$14,718

Condominium

$12,250

$13,800

Consent Base

$2,300

$2,530

 

  • Include a new fee for Common Element and Vacant Land Condominiums as these types of applications require a public meeting.   Staff are suggesting the existing fee be increased by the general rate ($3,090) required for additional public meetings
  • Add news fees for large scale major studies associated with a new Secondary Plan, major Official Plan Amendment/Secondary Plan Amendment, Major Zoning or Major Site Plan application on a large scale complex site.  Studies may include but not limited to Community Design Plan, Precinct Plan, Master Transportation Plan, Master Environmental Servicing Plan, etc. and two categories are recommended; update of an existing study or a new study.

 

 

Study Type

Fee

Update Existing Major Planning Study

$10,000/study

New Major Planning Study

$25,000/study

Update Existing Major Engineering Study

$  5,000/study

New Major Engineering Study

$15,000/study

 

  • Revise the minor site plan application fee into two categories to better reflect the Staff time connected with each application.   Staff are proposing one fee of $1,000 specific to changes to existing parking lots and outdoor patios and another fee of $2,000 for all other minor applications not associated with residential or ICI applications (e.g. new parking lots, façade changes or changes to approved plans).      
  • Waive the fee for By-law variances (Committee of Adjustment), in Heritage Districts or for Heritage Properties where Heritage Staff or Heritage Markham have requested the implementation of a historic condition or feature.
  • Revise the calculation for urban design fees for subdivisions to cap the per unit calculation so for larger subdivisions the percentage of cost of landscape works is used as the final fee.
  • Other minor adjustments, including Sales Trailer agreements to be included in the Site Plan section, reduce the amount for revisions to draft approved plans as Staff have determined that time spent on these applications are not as originally calculated, add a new ICI fee for Heritage buildings less then 50m² and add a new design fee for short form agreements for buildings between 50m² and 100m².  

 

Building By-Law

The body of the new by-law remains substantively unchanged but will include the following fee increases:

1.      An increase in the fees for interior alterations to recover costs of plan review and inspections of mechanical and fire protection systems;

2.      An increase in the fees for electromagnetic locking devices to $200 each;

3.      An increase in the minimum fees for non-residential permits from $100 to $500 to recover the costs of plan review and inspections for minor non-residential works;

4.      An increase in the administrative fees for the issuance of Orders to Comply.

 

Town Wide Fee By-law

Staff are proposing to make some minor wording changes to clarify our reasoning for charging a fee.   Staff are proposing to change the wording of Planning research to also capture research and investigations by other departments within Development Services.   Staff are also proposing to revise the wording for capital projects and studies to ensure the it includes those projects not related to any particular Planning Act application.  

 

Public Consultation

The Ontario Building Code Act Reg. 350/06 requires the Town to hold at least one public meeting at which any person who attends has an opportunity to make representations with respect to any changes in fees.  Notice must be given to the general public and interested parties 21 days prior to the meeting.  It is recommended that notice be placed in the Markham Economist and Sun and the Thornhill Liberal, and be mailed to the Urban Development Institute, Toronto Home Builders Association, and development industry representatives listed on the Town’s “Developers Round Table” distribution list. Staff are recommending that the public meeting be held on November 3, 2009, as part of the regular Development Services Committee Public Meeting scheduled for that date.      

 

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

The Finance Department has been working closely with Development Services Commission staff to ensure proper direct and indirect cost recovery and to incorporate the results into the proposed 2010 operating budget.  Increased fees are required in 2010 to cover the projected increase in costs over the 2009 base.   These increases are a result of adjustments based on the 5-year average volume of development activity, projected 2010 salary and benefit increases and general inflation.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Development Services Commission Departments and Finance Department were consulted.

 

ATTACHMENTS:

Attachment “A”         Draft of amendment to Development Fee By-law 211-83

 

RECOMMENDED BY:  

 

 

 

 

 

                                           

Jim Baird, M.C.I.P., R.P.P.

Commissioner of Development Services

 

 

 

Q:\Development\Strategy\Fees\Reports\2010 Preliminary Report 1.doc