06 25 2015 Building Permit Fee Schedule RevisionsTOWNSHIP OF ORO-MEDONTE
NOTICE OF PUBLIC MEETING
RE: PROPOSED
BUILDING PERMIT FEE SCHEDULE REVISIONS
Council of the Corporation of the Township of Oro-Medonte has received a Building Division Staff
Report Proposing Revisions to Fees & Charges Bylaw# 2014-012 as amended, Schedule B- Building.
DATE AND LOCATION OF PUBLIC MEETING:
Date: Thursday June 25, 2015
Time: 7:30 pm with Council recognitions starting at 7pm
Location: Council Chambers, Township of Oro-Medonte, 148 Line 7 South Oro
THE BUILDING CODE ACT and subsequent Regulations, the Building Code, are, on an
ongoing basis, amended by the Ministry of Municipal Affairs and Housing. Consequently, it is
periodically necessary for the municipal Building By -Law to be amended to remain current with
the Provincial legislation from which it is derived.
SCHEDULE B to the Fees By -Law contains the municipal Building Division's Fees. Pursuant to
the Building Code Act 7.(8) a Public Meeting is to be held when fee revisions are proposed to give
Council and the general public the opportunity to ask questions, express concerns and discuss the
proposal, prior to any decision by Council, relative to the proposed revisions.
THE EFFECT of the proposed Fee Revisions are proposed to be increased to better reflect the
costs of administering those Building Permit categories and to ensure that general tax revenues are
not required to subsidize those Building Permit processes, as per BCA 7.(2).
FURTHER INFORMATION along with the proposed new schedule is available for review
during business hours, in the Building Division, Township of Oro-Medonte, 148 Line 7 S, Oro,
Ontario OR on the Township's website at www.oro-medonte.ca. For further information, you may
also contact Bobbi Leppington, Chief Building Official (705) 487-2171 during normal business
hours or by e-mail at bleppington@oro-medohte.ca
Dated at the Township of Oro-Medonte this Yd day of June 2015
Building Division
Township of Oro-Medonte
148 Line 7 South
Oro, Ontario LOL 2130
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Presentation
1 . Background
2, Highlights from permit fees review report
3, Fee changes per category
4. Suggested Implementation date
Q & A
Background
Through budget process Council identified that Building Division operating
budget should be captured through the collection of permit fees and not
supported by general tax levy.
Section 7(2) of the Building Code Act states that the total amount of fees
authorized must not exceed the anticipated reasonable cost of administration
and enforcement (direct and indirect costs).
Staff was requested to provide a report to Council regarding actual cost
recovery through permit fees.
s At the May 13, 2015 Council meeting Report DS2015-044 — Building Division
Permit Fee Review was received and adopted.
Building Division Permit Fee Review
Methodology used
I. Building permit activity from 2008-2014 inclusive.
2. The 2014 budget and financial report to determine direct and indirect costs related to
building permit fees.
3 Time allocation information.
4. Direct cost for Building Services staff to process a building permit file - from counter
through plans examination, inspections and closing the file.
An adjustment for minor permits from actual cost was incorporated.
6. An allowance for capturing other costs not directly related to a building permit that fac
into staff time.
A 25% Reserve fund recovery was considered
8. Summary comparison to area Municipalities.
Permit activity
� Permit activity and categories were analyzed over a 6 year period to gain an
understanding of the majority of projects
m The majority of Permits are all residential projects including; SDD, Additions,
Renovations, Decks, Garages and Boathouse and On site Sewage systems
account for the majority of projects
Direct and Indirect Costs
Direct — associated with front line costs of administration and enforcement.
� Salaries & Benefits
0- Supplies
o- Education & Training
a Legal costs — directly related to enforcement
Vehicle costs and Vehicle amortization
Indirect Costs — associated with functions provided by Council and other
departments
Council, CAO, Clerks, Treasury, HR, IT, Fire and Planning
k- Overhead Cost of Building Division (Rent)
Time Allocation Information &
Adjustment for Minor Permits
lo- A review was undertaken for the time (and associated costs) for each categor
of permit to be processed from Permit application intake, data entry, plans
review, inspections including occupancy and final.
b Cost included for staff time not covered under a building permit fee
io, Technical general inquiries
o. Pre consultation services
® Agency reporting
o� Special projects
It was recommend that minor fees remain at a lower fee (for demolitions, decl
etc) to ensure it did not become a deterrent from ratepayers obtaining permits
- Mandate of OBC is health & safety
Reserve fund deficit &
Comparison to area municipalities
® At the end of 2014 the Building Division carried a reserve fund deficit of
$7471083.00
Consideration was given to including this deficit as part of the Actual Cost
Recovery which would increase permit fees 25% over actual operating cost
Previously Council had provided direction to staff to keep permit fees ,in ME
with surrounding Municipalities.
Townships permit fees have been in "middle" with area Muncipalities and tl
proposed fee revisions will move the Township of Oro-Medonte to the top
three
What are the proposed changes?
o. Staff recommendation to Council includes
o� Adjust the fees to 100% actual operating costs
Eliminate the reserve fund deficit of $747,083.00 as its has been carried by gene
tax levy
P,� Implement a cross subsidy to keep the minor permits fees low
Implement a 3% increase to be set aside in reserves. This will build a reserve
budget of 1.Ox operating cost to carry the Building Division in times of reduced
activity
Existing and Proposed Fee Highlights
Existing
$.88/sqft
$.45/sqft
$200 or $300
$400.00
$.20/ sqft (max $800)
Agricultural buildings
- Pole barns, coveralls
$.20/ sqft (max $800)
Barns, riding arenas, viewing areas
2500sgft house — main floor only
$2200.00
24 x 24 garage
$259.20
Flat rate on decks
Septic system
65 x 125 pole barn (8125sgft)
8125 x.20 = $1625
Max $800.00
65 x 125 cattle barn with manure
storage under (8125sgft)
8125 x.20 = $1625
Max $800.00
Proposed
$1.55/sqft
$.60sq/ft
No proposed change
$425.00
No proposed change
Agricultural buildings
- Pole barns, coveralls
$.45/sqft no max.
Barns, riding arenas, viewing areas
2500sgft house — main floor only
$3875.00
24 x 24 garage
$345.60
Flat rate on decks
Septic system
65 x 125 cattle barn with manure
storage under (8125sgft)
8125 x .45 = $3656.25
Permit fee 3656.25
Suggested implementation date
As this fee proposal change is significant and many contractors and owners hav(
projected costs already, it is staffs further recommendation to implement the
permit fee increase Monday August 31St
Current operating budget $451,405
As of May 31 It 2015 permit fees collected $200,038.56